TIM S A : Strategic Plan 2021-2023

TIM S.A.

Publicly-Held Company Corporate Taxpayer's ID (CNPJ/MF):

02.421.421/0001-11 Corporate Registry (NIRE):

33.300.324.631

MATERIAL FACT

STRATEGIC PLAN 2021-2023 AND GUIDANCE RELEASE

TIM S.A. ("Company" or "TIM) (B3: TIMS3; NYSE: TIMB), in compliance with Article 157 of Law No 6,404 and the provisions of CVM Instruction N. 358, hereby informs its shareholders, the market in general and other interested parties that Telecom Italia Group released today its forecasts for 2021-2023 period. In this context, TIM updates the forecasts of its Strategic Plan 2020-2022, released to the market through a Material Fact dated March 10th, 2020.

Despite a challenging year, due to the pandemic of the COVID-19, with major impacts on public health and the economy, the Company proved to be antifragile, reinvented itself and presented solid results at the end of 2020, fulfilling part of the short-term goals outlined in its 2020-2022 Strategic Plan, which demonstrates the focus on execution, with agility in decision making, prioritization and digital courage were crucial in this context different from that projected by TIM and the market in general.

Projections 2020-222

Service Revenues Growth (YoY)

2020 Projection (Short

Term)

EBITDA Growth (YoY)Mid-Single Digit Mid-Single Digit Growth

% CAPEX over Net Revenues % EBITDA - CAPEX over Net Revenues

Low 20's >20% (w / IFRS 16)

0.4% 3.2% 22.5% 25.9%

The Company also discloses long-term goals in its projections and, for the EBITDA Margin and EBITDA - CAPEX over Net Revenue, it exceeded the targets established for the year 2022 (respectively ≥ 47% and ≥20%), reaching a EBITDA margin of 48.5% and EBITDA - CAPEX over Net Revenue of 25.9%, in 2020.

For this new triennium, despite a challenging 2020, TIM reaffirms its commitment with (i) the sustainable evolution of Service Revenue, resulting from the search for new service lines, maintaining its mid-single digit growth estimate for the current year (ii) the improvement of its profitability, with mid-single digit growth of EBITDA, even with the preparation costs related to the incorporation of Oi's mobile assets; (iii) an efficient capital allocation, characterized by the CAPEX destination to digitization, automation and new operational models, as well infrastructure (network and IT) extension and modernization projects, and (iv) the continuous expansion of the cash generation characterized by the growth of EBITDA - CAPEX over Revenues indicator to reach the level of 24%.

Additionally, TIM points out that it presents, for long-term objectives, a vision considering the continuity of its operation with the impacts of the incorporation of Oi SA's mobile assets, still pending approval by regulatory bodies, according to the Material Facts of January 29th, 2021 and December 14th, 2020, as well as a view disregarding the effects of this merger.

Projeções 2021-23
KPIi	Projections 2021 '(Short Term)	Long Term (Standalone)	Long Term (Combining Oi's Assets)
Service Revenues Growth (YoY)	Mid-Single Digit	Mid-Single Digit (CAGR 20' -23')	High-Single Digit (CAGR 20' -23')
EBITDA Growth (YoY)	Mid-Single Digit (Including preparation costs)	Mid-Single Digit (CAGR 20' -23')	Double Digit (CAGR 20' -23')
CAPEX	~R$ 4.4 bln (including preparation invest-ments)	~R$ 13 bln	~R$ 13.5 bln
% EBITDA - CAPEX over Net Revenue	~24% (including preparation costs and investments)	-	≥29% in 2023

Lastly, TIM presents, as an attachment to this Material Fact, additional details about the 2021-2023 Strategic Plan and its guidance.

Rio de Janeiro, February 23rd, 2021.

TIM S.A.

Adrian Calaza

Chief Financial Officer and

Investor Relations Officer

2021-2023 Strategic Plan

TIM Brasil

February, 2021

tim.com.br/ir

TIM Brasil

Disclaimer

This presentation contains declarations that constitute forward looking statements regarding the intent, belief or current expectations of the customer base, estimates regarding future financial results and other aspects of the activities.

Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected as a result of various factors.

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.

Financial results are presented considering impacts from IFRS 16 adoption.

The normalized numbers reported in this presentation are adjusted by the effects listed below.

Note: Normalized numbers as detailed in TIM S.A.'s FY20 results presentation

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