TIM S A : Financial Statements 1Q24

TIM S.A.

QUARTERLY INFORMATION

March 31, 2024

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TIM S.A.

QUARTERLY INFORMATION

March 31, 2024

Contents

Independent auditors' report on quarterly information	1
Quarterly information
Balance sheets	3
Statements of income	5
Statements of comprehensive income	6
Statements of changes in shareholders' equity	7
Statements of cash flows	9
Statements of value added	11
Performance comment	12
Notes to the individual and consolidated quarterly information	33
Tax Council Opinion	119
Statement of the Executive Officers on the quarterly information	120
Statement of the Executive Officers on the Independent auditors' report	121

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TIM S.A.

BALANCE SHEETS

March 31, 2024 and December 31, 2023

(In thousands of reais)

Parent Company

				Note
	Assets
	Current assets
	Cash and cash equivalents	4
	Marketable securities	5
	Trade accounts receivable	6
	Inventories	7
	Recoverable income tax and social contribution		8.a
	Recoverable taxes, fees and contributions			9
	Prepaid expenses	10
	Derivative financial instruments	37
	Leases	17
	Other amounts recoverable	18
	Other assets	13
	Non-current assets
	Long-term receivables
	Marketable securities	5
	Trade accounts receivable	6
	Recoverable income tax and social contribution		8.a
	Recoverable taxes, fees and contributions			9
	Deferred income tax and social contribution		8.c
	Judicial deposits	11
	Prepaid expenses	10
	Derivative financial instruments	37
	Leases	17
	Other financial assets	12
	Other assets	13
	Investment	14
	Property, plant and equipment	15
	Intangible assets	16

03/2024

54,334,248

10,334,504

1,984,682

1,386,163

4,042,319

404,688

305,726

934,521

611,592

304,527

30,983

68,892

260,411

43,999,744

4,429,776

12,965

189,598

208,298

904,875

1,269,540

685,717

190,827

506,893

209,256

214,461

37,346

1,428,311

22,689,448

15,452,209

12/2023

55,260,156

11,404,293

3,077,931

1,958,490

3,709,766

331,783

494,382

943,767

238,468

299,539

29,886

80,963

239,318

43,855,863

4,368,195

12,949

199,007

218,897

874,539

1,257,494

689,739

138,937

507,873

206,455

216,721

45,584

1,450,812

22,411,815

15,625,041

See the accompanying notes to the individual and consolidated quarterly information.

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TIM S.A.

BALANCE SHEETS

March 31, 2024 and December 31, 2023

(In thousands of reais)

					Parent Company
		Note		03/2024	12/2023
	Total liabilities and shareholders' equity			54,334,248		55,260,156
	Total liabilities			29,309,032		29,244,216
	Current liabilities			12,773,034		12,882,966
	Suppliers	19		3,911,914		4,612,112
	Loans and financing	21		760,682		1,267,237
	Lease liabilities	17	1,846,861	1,808,740
	Derivative financial instruments	37		244,317		239,714
	Labor obligations		462,764	386,348
	Income tax and social contribution payable	8.b		48,605		64,407
	Taxes, fees and contributions payable	22	3,115,840	3,048,115
	Dividends and interest on shareholders' equity payable	26		1,579,670		647,872
	Authorizations payable	20	414,768	407,747
	Deferred revenues	23		273,440		279,401
	Other liabilities and provision	25	114,173	121,273
	Non-current liabilities		16,535,998	16,361,250
	Loans and financing	21		2,487,200		2,503,709
	Lease liabilities	17	10,546,622	10,448,035
	Taxes, fees and contributions payable	22		9,851		10,603
	Provision for legal and administrative proceedings	24	1,529,254	1,410,299
	Pension plan and other post-employment benefits	38		5,019		5,019
	Authorizations payable	20	1,157,802	1,117,416
	Deferred revenues	23		609,039		621,601
	Other liabilities and provision	25	191,211	244,568
	Shareholders' equity	26		25,025,216		26,015,940
	Share capital			13,477,891		13,477,891
	Capital reserves			390,507		384,311
	Profit reserves		10,850,035	12,160,035
	Equity valuation adjustments			(3,313)		(3,313)
	Treasury shares		(9,327)	(2,984)
	Profit for the period			319,423		‐

See the accompanying notes to the individual and consolidated quarterly information.

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TIM S.A.

STATEMENTS OF INCOME

Periods ended March 31, 2024 and 2023

(In thousands of reais, unless otherwise indicated)

Notes

	Parent Company				Consolidated
	03/2024		03/2023		03/2023

	Net revenue	28
	Costs of services provided and goods sold	29
	Gross income
	Operating revenues (expenses):

6,095,529 5,649,267

(2,952,881) (3,054,736)

3,142,648 2,594,531

5,640,155

(2,811,692)

2,828,463

	Selling expenses		29
	General and administrative expenses	29
	Equity in earnings	14
	Other revenues (expenses), net	30
	Income before financial revenues and expenses
	Financial revenues (expenses):

(1,465,720)

(448,639)

(22,501)

(92,860)

(2,029,720)

1,112,928

(1,368,587)

(448,396)

134,794

(98,783)

(1,780,972)

813,559

(1,479,967)

(449,982)

(18,592)

(100,411)

(2,048,952)

779,511

Financial revenues		31
Financial expenses	32
Net foreign exchange variations	33

Profit before income tax and social contribution

221,180 354,436

(754,056) (687,791)

7,883 (2,845)

(524,993) (336,200)

587,935 477,359

375,185

(595,716)

(2,845)

(223,376)

556,135

Income tax and social contribution

8.d

(68,512)

(64,923)

(143,699)

Net profit for the period

519,423

412,436

412,436

Earnings per share attributable to the Company's shareholders (expressed in R$ per share)

Basic earnings per share

34

0.21		0.17
0.17

Diluted earnings per share

34

0.21		0.17
0.17

See the accompanying notes to the individual and consolidated quarterly information.

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TIM S.A.

STATEMENTS OF COMPREHENSIVE INCOME

Periods ended March 31, 2024 and 2023

(In thousands of reais)

Parent Company	Consolidated
03/2024	03/2023	03/2023

Net profit for the period	519,423
Other components of the comprehensive income
Total comprehensive income for the period		519,423

412,436412,436

412,436412,436

See the accompanying notes to the individual and consolidated quarterly information.

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TIM S.A.

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Period ended March 31, 2024

(In thousands of reais)

Balances on January 1, 2024

Total comprehensive income for the period

Net profit for the period

Total contribution from shareholders and distribution to shareholders

Post-employment benefit amount recorded directly in shareholders' equity (note

)

Total comprehensive income for the period

Total contribution from shareholders and distribution to shareholders Long-term incentive plan (note 26.b)

Purchase of treasury shares, net of disposals

Allocation of net profit for the period:

																Profit reserves
																		Additional													Equity
	Share			Capital			Legal			Expansion			dividends/interest			Tax incentive												Retained
															Treasury shares					valuation					Total
	capital			reserve			reserve			reserve			on shareholders'			reserve											earnings
																				adjustments
																		equity proposed
	13,477,891			384,311		1,380,427		7,107,369			1,310,000		2,362,239	(2,984)	(3,313)					‐	26,015,940
	‐				‐				‐				‐			‐				‐					‐					‐				519,423				519,423
	-		-		-	-			‐			‐					‐					‐	-				‐
	-					-					-				-			‐														‐				-					‐
	‐			‐			‐			‐	‐	‐			‐					‐					‐	519,423			519,423
	-		6,196		-	-			-										-		-		6,196
	-				-				-				-			-								(6,343)			-					-				(6,343)

Interest on Shareholders' Equity (note 26)	-	-	-	‐	‐	(200,000)	(200,000)
Additional dividends/interest on shareholders' equity distributed				(1,310,000)			(1,310,000)

Distribution of reserve for expansion (Note 26)

Total contribution from shareholders and distribution to shareholders

Balances on March 31, 2024

-

‐

13,477,891

-

6,196

390,507

-

‐

1,380,427

	1,310,000	(1,310,000)
	‐		(1,310,000)
	7,107,369						‐

‐

2,362,239

(6,343)

(9,327)

-

‐

(3,313)

‐

(200,000)

319,423

-

(1,510,147)

25,025,216

See the accompanying notes to the individual and consolidated quarterly information.

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TIM S.A. and TIM S.A. and SUBSIDIARY

STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

Period ended March 31, 2023

(In thousands of reais)

Profit reserves

Additional

Equity

Share

Capital

Legal

Expansion

dividends/interest

Tax incentive

Retained

Treasury shares

valuation

Total

capital

reserve

reserve

reserve

on shareholders'

reserve

earnings

adjustments

equity proposed

Balances on January 01, 2023

13,477,891

408,602

1,250,448

7,540,020

600,000

2,124,411

(163)

(3,844)

‐

25,397,365

Total comprehensive income for the period

Net profit for the period

Total contribution from shareholders and distribution to shareholders Post-employment benefit amount recorded directly in shareholders' equity

Total comprehensive income for the period

Total contribution from shareholders and distribution to shareholders Long-term incentive plan

Allocation of net profit for the period:

Additional dividends/interest on shareholders' equity distributed Distribution of expansion reserve

Total contribution from shareholders and distribution to shareholders

Balances on March 31, 2023

	‐				‐					‐			‐			‐				‐			‐			‐			412,436		412,436
	-		-	-	-			‐		‐			‐			‐	-		‐
	-				-					-			-			‐										‐			-		‐
	‐			‐					‐			‐ ‐		‐ ‐		‐			‐			‐	412,436	412,436
	-		5,715	-	-		-								-	-	5,715
	‐			‐					‐	(600,000)			‐		‐			‐			‐			‐	(600,000)
	-				-					-			600,000			(600,000)										-			‐		‐
	‐	5,715					‐			‐	(600,000)				‐			‐			‐			‐	(594,285)
	13,477,891				414,317					1,250,448			7,540,020			‐				2,124,411			(163)			(3,844)			412,436		25,215,516

See the accompanying notes to the individual and consolidated quarterly information.

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