DISCLAIMER
This presentation contains declarations that constitute forward-lookingstatements regarding the
intent, belief or current expectations of value creation, customer base dynamics, estimates regarding future financial results and other aspects of the activities.
Analysts and investors are cautioned not to place undue reliance on those forward-looking
statements, which speak only as of the date of this presentation. TIM S.A. undertakes no obligation to release publicly the results of any revisions to these forward-looking statements, those do not represent necessarily a formal guidance.
Such forward looking | Financial figures are |
statements are not | presented |
guarantees of future | considering impacts |
performance and | from IFRS 16 |
involve risks and | adoption, unless |
uncertainties, and | otherwise indicated. |
actual results may | Normalized numbers |
differ materially from | in this presentation |
those projected as a | are adjusted by the |
result of various factors. | effects described in |
footnotes. |
- Net Revenue normalized by the temporary effect of inefficiency of PIS/COFINS as a result of the contract signed between TIM S.A and Cozani (+R$41.0 million in 1Q23). The merger of Cozani into TIM S.A. took effect on April 1st, 2023.
- Operating Costs normalized by: non-recurring effect from the accounting for the closing price adjustment agreement for Oi's mobile assets (-R$303.4 million in 4Q23), expenses with consulting services within the scope of the acquisition project of Oi Mobile and customer migration (+R$190k in 4Q23 and +R$12.5 million in 1Q23), PIS/COFINS credits generated in the intercompany contract with Cozani (-R$17.7 million in 1Q23) and expenses with FUST/FUNTEL related to the intercompany contract with Cozani (+R$886k in 1Q23).
- Normalized EBITDA according to the items described in the Revenue section (+R$41.0 million in 1Q23) and Costs section (-R$303.2 million in 4Q23 and -R$4.4 million in 1Q23).
- Net Financial Result normalized by the monetary adjustment on the non-recurring effect of the accounting for the closing price adjustment agreement for Oi's mobile assets (+R$27.5 million in 4Q23).
- Normalized Net Income according to the items described in the Revenue, Costs and Net Financial Results sections, as previously described, and non-recurring items in Income Tax and Social Contribution: impact from deferred and current taxes on the non-recurring effect of the accounting for the closing price adjustment agreement for Oi's mobile assets (+R$93.8 million in 4Q23), tax credits related to the intercompany contract with Cozani (-R$8.2 million in 1Q23) and other tax effects (-R$64k in 4Q23 and -R$4.2 million in 1Q23).
TIM S.A. - Investor Relations Results Presentation
2
REAPING THE BENEFITS OF
-
WELL-
DESIGNED PLAN AND SHARP EXECUTION
Solid above inflation expansion in Service Revenue¹
(+7.3% YoY in 1Q24)
Double digit EBITDA¹ growth (+10.7% YoY in 1Q24) with margin expansion
Best 1st quarter OpFCF²
R$ 843 Mln
(+58.6% YoY in 1Q24)
Robust TIM's 5G rollout, already covering 266
cities, including all capitals
Launch of TIM IoT Solutions brand and an innovative bundle offer for Agribusiness
1st IoC tranche R$ 200 Mln announced in March
(1) Normalized for the effects detailed in slide 2; (2) OpFCF calculated as EBITDA-AL minus Capex. | TIM S.A. - Investor Relations |
Results Presentation | |
3
FINANCIALS: SOLID EXPANSION WITH CONSISTENT PERFORMANCE ACROSS ALL REVENUE LINES
TOTAL NET REVENUE GROWING HIGH-SINGLE DIGIT
(Normalized¹ Net Revenue in R$ Mln; %YoY)
Service Revenue¹
+7.3% YoY in 1Q24
High-Single digit growth in Mobile and Fixed streams assured a consistent service revenue performance.
Products
Fixed
Mobile Service Revenue1
5,681
174
315
5,193
7.3%
7.4%
6,096
186
332
5,577
Mobile Service Revenue¹
+7.4% YoY in 1Q24
Solid mobile performance fueled by organic growth.
TIM UltraFibra Revenue
+9.1% YoY in 1Q24
High-Single digit growth, keeping the FTTH expansion in focus.
1Q231Q24
Mobile ARPU1 keeps growing in a fast pace, achieving the highest 1Q YoY growth ever (+8.8%)
Highest broadband ARPU ever, growing 3.1% YoY and reaching R$ 95.8
- Normalized for the effects detailed in slide 2.
Products Revenue
+7.3% YoY in 1Q24
Diversifying products portfolio to meet customer needs and offer greater convenience.
TIM S.A. - Investor Relations | 4 |
Results Presentation |
MOBILE: CAPTURING VALUE THROUGH CUSTOMER BASE
TRANSFORMATION
MOBILE ARPU1 INCREASES HIGH SINGLE-DIGIT…
(R$ /Mo)
30.3
… AS WE IMPROVE COSTUMER BASE PROFILE
POSTPAID EX-M2M CHURN RATE SUSTAINS THE LEVEL
8.8%
27.9
0.8%
(per month)
-1.2 p.p. YoY in 1Q24
Churn reduction, reflecting improved customer satisfaction and loyalty through enhanced overall quality and value proposition
UPGRADING OUR CUSTOMER BASE
1Q23 | 1Q24 |
+10.9%²
YoY in 1Q24
MIGRATION PREPAID TO POSTPAID
Increase in Pre-to-Post migration, highlighting a coherent and consistent customer base management and the attractiveness of our postpaid plans.
Postpaid ex-M2M ARPU increased 6.3% YoY in
ACCELERATING POSTPAID ACQUISITION
Net adds evolution (ex-M2M)
1Q24
Prepaid ARPU grew 5.4% YoY in 1Q24
(Net adds in '000)
279
357 382 415
Net Adds on the positive side, thanks to our strategy to improve customer base evolution.
1Q23 2Q23 3Q23 4Q23 1Q24 | TIM S.A. - Investor Relations |
(1) 1Q23: Postpaid to prepaid reclassification of 900k customers, due to Oi M&A transaction; (2) Migration from Prepaid to Postpaid Ex-Cozani. | Results Presentation |
5
MOBILE: THE 3Bs STRATEGY IN ACTION TO DELIVER THE BEST VALUE PROPOSITION AND CHANGE CLIENTS' MINDSET
Best Service
First and only company in Brazil to be awarded the Procon SP seal for the best complaint resolution rate for 10 months
High Resolvability Index at Anatel Consumidor, with a percentage of approximately 94%
+29% YoY growth in | More than 50% of |
NPS in Human assistance | customer interactions are |
in call center in 1Q24 | digital (+29% YoY) |
Best Network
5G sustaining good expansion performance, already covering all the country's capitals and
all the neighborhoods of 8
capitals + DF
TIM is the most reliable operator in terms of best 5G signal availability in the Brazilian market, according to OpenSignal's global report¹ on mobile operator reliability
Best Offer
TIM exclusive in-flight connectivity, now boosted with streaming on all Gol and Latam domestic flights
Partnership with Zé Delivery, providing more benefits and increasing customer loyalty, since users of the Zé Delivery app have 15% higher spending than non-users.
PERCEPTION CHANGE AND BRAND RECOGNITION
+18.5%
Increase of brand
awareness since offer
launch
TEST DRIVE AS DRIVER FOR CHANGING QUALITY PERCEPTION
First and only operator in LatAm to launch a network test offer,
showing the confidence we have in the quality of our network.
MUSIC AS A CONNECTION BETWEEN OUR VALUES AND CUSTOMERS
TIM and music come together to
create new possibilities, celebrating diversity and building new connections, transforming melodies into unforgettable moments.
TIM S.A. - Investor Relations | |
(1) Source: Mobile Time (Click here); | Results Presentation |
6
B2B
LAUNCH OF THE PRIVATE PROJECT WITH THE | OFFER INNOVATION: FIRST BUNDLE IN |
LARGEST 4G AREA IN THE COUNTRY | IOT (MACHINERY + CONNECTIVITY) |
VERTICALS CONTINUE TO EVOLVE: LAUNCH OF TIM IOT
In partnership with BP Bunge, we will guarantee the provision of a 4G signal to an area of 3 million hectares in Brazil
This is the private project with the largest area with 4G in the country, reducing costs and increasing productivity of Bunge's operation, as well as providing connectivity to communities in 46 municipalities
"BUY A TRACTOR AND GET A 4G TOWER FOR YOUR FARM"
Innovative offer in a partnership with CASE IH (CNHi) that includes a 4G network tower with acquisition of smart machinery
Another step to
develop our B2B strategy aiming to target more clients and facilitate the digitalization of the agribusiness in
the country
SOLUTIONS
WE ARE STRUCTURING
OUR B2B INITIATIVES INTO
A SINGLE BRAND
HIGHLIGHTS OF TIM IOT SOLUTIONS RESULTS
+17Mln +224k | +4,700 | +191k | |
Of 4G Hectares | Rural properties | Km of highways | Sold poles of smart |
covered | covered | lighting | |
TIM S.A. - Investor Relations Results Presentation
7
TIM ULTRAFIBRA: FOCUS ON VALUE TO SUPPORT GROWTH WITH PROFITABILITY
TIM ULTRAFIBRA NET REVENUE SUSTAINED THE PACE
(R$ Mln; %YoY)
ABOVE 90% OF OUR CUSTOMER BASE IN FTTH
(Customer Base in '000)
9.1% 229
209
FTTC
FTTH
732
FTTH
10.1% 806
23.8%
SIGNIFICANT | +13.4 p.p. |
YoY growth in digital | |
GROWTH IN | channels |
MORE EFFICIENT | +7.1 p.p. |
CHANNELS | |
YoY growth in stores |
1Q231Q24
We maintained our rapid pace of growth, achieving the highest broadband ARPU ever
FTTC | -47.8% |
1Q23 | 1Q24 |
We continue to focus on the migration and expansion of the FTTH base, guaranteeing the delivery of higher connection quality and speed
TIM S.A. - Investor Relations Results Presentation
8
FINANCIALS: ROBUST EBITDA NUMBERS, DOUBLE-DIGIT GROWTH WITH MARGIN EXPANSION
EBITDA GROWTH FUELED BY REVENUE EXPANSION AND KEEPING COSTS UNDER CONTROL
8 CONSECUTIVE QUARTERS OF DOUBLE-DIGIT GROWTH AT EBITDA-AL
(Normalized¹ EBITDA in R$ Mln; %YoY)
2,890
10.7%
2,612
1Q231Q24
(Normalized¹ EBITDA-AL in R$ Mln; %YoY)
2,198
20.7%
1,820
Decommissioning fines totaled R$ 27 Mln in the 1Q24
~R$ 100 Mln less in recurring leases expenses versus 1Q23
MARGIN FULLY RECOVERED AFTER M&A TRANSACTIONS' IMPACTS
(Normalized¹ EBITDA Margin; %)
46.6% | ||||
45.9% | 46.0% | |||
44.9% | ||||
1Q20 | 1Q21 | 1Q22 | 1Q23 | 1Q24 |
- Normalized for the effects detailed in slide 2.
1Q231Q24
400 BPS EXPANSION MARKING THE BENEFITS OF A HOLISTIC APPROACH TO EFFICIENCY
(Normalized¹ EBITDA-AL Margin; %)
35.7% 35.9%
33.3%
32.0%
1Q20 1Q21 1Q22 1Q23 1Q24
TIM S.A. - Investor Relations | 9 |
Results Presentation |
FINANCIALS: NET INCOME CONTINUES TO GROW STRONGLY, SUPPORTED BY OPERATIONAL EFFICIENCY
NET INCOME CONTINUES TO GROW STRONGLY BY DOUBLE-DIGIT
(Normalized1 Net Income in R$ Mln)
Main effects in the quarter:
278
437
22
19.0%
-302
88
-4
519
D&A (-1.3% YoY):
Leases reduction totaled R$ 157 Mln YoY in 1Q24, however was partially offset by higher depreciation in transmission equipment
Net Financial Result (+135.0% YoY):
Despite lower interest on financial debt and leases, negative MTM over derivatives and a year-on-year comparative basis impacted by the renegotiation of tower contracts in 1Q23 led to higher financial expenses
1Q23 | EBITDA | D&A Net Financial Taxes | Equity | 1Q24 |
Results | Investment |
5 consecutive quarters of Net Income year-on-year increase
- Normalized for the effects detailed in slide 2.
Taxes (-56.1% YoY):
Due to the approval of R$ 200 Mln in IoC payments in 1Q24, benefiting the tax shield
TIM S.A. - Investor Relations | 10 |
Results Presentation |
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TIM SA published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 22:54:04 UTC.