Core Insights - All three major U.S. stock indices closed down over 1%, driven by investor concerns about persistent inflation and the Federal Reserve's decision to keep rates unchanged amid rising Middle East tensions and surging oil prices [1] - The February Producer Price Index (PPI) indicated that wholesale price increases are harder to control than anticipated, disappointing expectations for a smooth economic recovery [1] Dividend Growth Stocks - The appeal of high-beta growth stocks is diminishing, leading investors to favor steady dividend-growth stocks, which have a proven track record of increasing payouts and demonstrate balance sheet resilience [2] - Stocks with a strong history of year-over-year dividend growth can enhance portfolio resilience and offer greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks [3] - Selected dividend growth stocks include Flowserve (FLS), Analog Devices (ADI), Broadcom (AVGO), NVIDIA (NVDA), and TIM S.A. (TIMB), which are considered solid choices for investment [3] Advantages of Dividend Growth - Stocks with a strong history of dividend growth belong to mature companies, providing a hedge against economic or political uncertainty and stock market volatility [4] - These stocks exhibit strong fundamentals, including sustainable business models, profitability, rising cash flows, solid liquidity, strong balance sheets, and attractive valuations [5] - Although these stocks may not have the highest yields, they have historically outperformed the broader market and other dividend-paying stocks [6] Selection Criteria for Stocks - Criteria for selecting dividend-growth stocks include: - 5-Year Historical Dividend Growth Greater Than Zero [7] - 5-Year Historical Sales Growth Greater Than Zero [7] - 5-Year Historical EPS Growth Greater Than Zero [7] - Next 3-5 Year EPS Growth Rate Greater Than Zero [7] - Price/Cash Flow Less Than Industry Median [8] - 52-Week Price Change Greater Than S&P 500 [8] Specific Stock Insights - Flowserve (FLS): Expected 2026 revenue growth of 6.3%, long-term earnings growth rate of 11%, and annual dividend yield of 1.13% [11] - Analog Devices (ADI): Anticipated 2026 revenue growth of 25.1%, long-term earnings growth rate of 19.4%, and annual dividend yield of 1.43% [13] - Broadcom (AVGO): Projected 2026 revenue growth of 58%, long-term earnings growth rate of 48.6%, and annual dividend yield of 0.82% [14] - NVIDIA (NVDA): Expected 2027 revenue growth of 60%, long-term earnings growth rate of 39.1%, and annual dividend yield of 0.02% [15] - TIM S.A. (TIMB): Forecasted 2026 revenue growth of 11.8%, long-term earnings growth rate of 20.8%, and annual dividend yield of 5.37% [16]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1]. Company Overview: TIM S.A. Sponsored ADR (TIMB) - TIMB currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4]. - The stock has shown strong performance, with a 6.79% increase over the past week, outperforming the Zacks Wireless Non-US industry, which rose by 4.43% during the same period [6]. - Over the last month, TIMB's price change is 22.63%, significantly higher than the industry's 15.68% [6]. - In the longer term, TIMB shares have increased by 13.91% over the past quarter and 71.73% over the last year, while the S&P 500 has only moved 1.76% and 13.08%, respectively [7]. Trading Volume - TIMB's average 20-day trading volume is 393,343 shares, which serves as a useful indicator of market interest and price movement [8]. Earnings Outlook - Recent earnings estimate revisions for TIMB have been positive, with two estimates moving higher and none lower, raising the consensus estimate from $1.72 to $1.79 over the past 60 days [10]. - For the next fiscal year, one estimate has increased while there have been no downward revisions [10]. Conclusion - Given the positive momentum indicators and earnings outlook, TIMB is positioned as a strong buy candidate for investors seeking short-term opportunities [12].

Core Insights - Major U.S. stock market indices experienced a decline on February 12, 2026, due to concerns regarding AI disruption affecting various sectors, including real estate, transportation, and software [1] - A shift towards steady dividend-growth stocks is recommended for equity investors as they provide resilience and cash flow durability during a period of reevaluation of traditional growth narratives [2] Dividend Growth Stocks - Stocks with a strong history of year-over-year dividend growth are considered healthier for capital appreciation compared to simple dividend-paying stocks or those with high yields [3] - Five selected dividend growth stocks include Agnico Eagle Mines (AEM), Advanced Drainage Systems (WMS), Amphenol (APH), Tapestry (TPR), and TIM S.A. (TIMB), which are viewed as solid portfolio choices [3] Advantages of Dividend Growth - Companies with a strong history of dividend growth are typically mature and less vulnerable to market volatility, providing a hedge against economic and political uncertainties [4] - These stocks exhibit strong fundamentals, including sustainable business models, profitability, rising cash flows, solid liquidity, strong balance sheets, and attractive valuations [5] Performance Metrics - Dividend-growth stocks have historically outperformed the broader market and other dividend-paying stocks, making them a favorable investment strategy [6] - Criteria for selection include positive historical dividend, sales, and earnings growth, as well as projected earnings growth rates [7] Stock Highlights - Agnico Eagle Mines (AEM) projects a 28% revenue growth for 2026 and has a long-term EPS growth rate of 33.8%, with a dividend yield of 0.74% [9][11] - Advanced Drainage Systems (WMS) anticipates a 4% revenue growth for fiscal 2026, with a long-term earnings growth rate of 13.90% and a dividend yield of 0.42% [12] - Amphenol (APH) expects a 34.9% revenue growth for 2026, with a long-term earnings growth rate of 21.90% and a dividend yield of 0.69% [13] - Tapestry (TPR) forecasts a 9.6% revenue growth for fiscal 2026, with a long-term earnings growth rate of 12.9% and a dividend yield of 1.03% [14] - TIM S.A. (TIMB) projects a 10.3% revenue growth for 2026, with a long-term earnings growth rate of 18.7% and a dividend yield of 5.20% [15]

Core Viewpoint - The recommendation to "Hold" TIM S.A. (TIMB) shares is reiterated following the release of the fourth quarter results, indicating a cautious stance on the stock's performance [1]. Company Analysis - The article continues the coverage initiated on May 14, 2024, reflecting a long-term perspective on TIM S.A. and its market position [1]. - The analyst has over 7 years of experience in equity analysis in Latin America, suggesting a depth of knowledge in the regional market dynamics [1]. Investment Insights - The research aims to provide clients with in-depth insights to facilitate informed investment decisions, highlighting the importance of thorough analysis in the investment process [1].

Core Viewpoint - The recommendation to "Hold" TIM S.A. (TIMB) shares is reiterated following the release of the fourth quarter results, indicating a cautious stance on the stock's performance moving forward [1]. Company Analysis - The article continues the coverage initiated on May 14, 2024, reflecting a long-term perspective on TIM S.A. and its market position [1]. - The analyst has over 7 years of experience in equity analysis within the Latin American market, suggesting a depth of knowledge in regional investment dynamics [1]. Investment Insights - The research aims to provide clients with in-depth insights to facilitate informed investment decisions, highlighting the importance of thorough analysis in the investment process [1].

Core Viewpoint - TIM S.A. Sponsored ADR (TIMB) has shown strong stock performance, with a 23.7% increase over the past month and a 29.7% gain since the start of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Wireless Non-US industry [1][2]. Financial Performance - TIM has consistently exceeded earnings expectations, reporting an EPS of $0.52 against a consensus estimate of $0.48 in its last earnings report [2]. - For the current fiscal year, TIM is projected to achieve earnings of $1.75 per share on revenues of $5.26 billion, reflecting a 9.38% increase in EPS and a 10.3% increase in revenues. For the next fiscal year, earnings are expected to rise to $1.90 per share on revenues of $5.48 billion, indicating year-over-year changes of 8.76% and 4.2%, respectively [3]. Valuation Metrics - TIM's current valuation metrics indicate a trading multiple of 14.4X current fiscal year EPS estimates, which is above the peer industry average of 13.6X. The stock trades at 6.5X trailing cash flow compared to the peer group's average of 7X, and it has a PEG ratio of 0.77, positioning it favorably for value investors [7]. Zacks Rank and Style Scores - TIM holds a Zacks Rank of 2 (Buy), supported by positive earnings estimate revisions from analysts. The stock also has a Value Score of A, a Growth Score of B, and a Momentum Score of D, resulting in a combined VGM Score of A [6][8].

Financial Performance - Service revenue grew by 5.2% year-on-year, exceeding inflation [3] - EBITDA increased by 7.5%, with an EBITDA margin reaching 51% [3][12] - Operating cash flow expanded by 16%, closing the year with a margin of 22.7% [3][14] - Total shareholder remuneration amounted to BRL 4 billion in cash and BRL 750 million in share buybacks, achieving a payout ratio of 139% [3][14] Business Line Performance - Mobile service revenues increased by 5.4%, with postpaid revenues growing by 9.5% in Q4 [5][6] - Postpaid ARPU reached almost BRL 55, reflecting a year-on-year growth of 3.1% [6] - Prepaid segment showed signs of stabilization, with revenue decline decelerating for the third consecutive quarter [7] - Broadband revenues returned to growth in Q4, with UltraFibra revenues increasing by 6.2% year-on-year [8][9] Market Performance - TIM remains the leader in 5G in Brazil, covering over 1,000 cities, which is 52% more than the second player [4] - B2B solutions surpassed BRL 1 billion in total contracted value, confirming its role as a structural growth engine [10] Company Strategy and Industry Competition - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [16][17] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [19][24] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [15] - The company is focused on maintaining a disciplined capital allocation strategy while exploring new growth avenues [17] Other Important Information - Operating costs grew only 1.8% year-on-year, reflecting ongoing cost optimization efforts [12] - The company completed a significant network modernization project in São Paulo, enhancing service quality [8] Q&A Session Summary Question: Margin and efficiency - Inquiry about the structural versus temporary nature of margin expansion and the strategic implications of the I-Systems acquisition [21] Answer - Management indicated that the margin expansion is largely structural, with the I-Systems acquisition enhancing operational control and efficiency [23][24] Question: Network and interconnection expenses - Questions regarding the drivers behind decreased network and interconnection expenses and the impact of mobile portability [31] Answer - Management noted stable churn levels and attributed the increase in portability to competitors' practices, while also highlighting ongoing cost optimization efforts [34][36] Question: Personal expenses and broadband ARPU - Inquiry about the sustainability of gains from tax over overtime hours and the improvement in broadband ARPU [39] Answer - Management clarified that the ARPU improvement is primarily due to internal optimization efforts rather than overall market dynamics [40][42] Question: Tower leases and tax reform - Questions about the evolution of tower lease negotiations and the impact of Brazil's tax reform [49] Answer - Management confirmed ongoing negotiations to maintain lease costs below revenue growth and indicated that the tax reform would have a neutral impact on free cash flow in 2027 [54][55]

Financial Data and Key Metrics Changes - Service revenue grew above inflation with a year-on-year expansion of 5.2% [3] - EBITDA margin expanded to 51%, with EBITDA increasing by 7.5% [3] - Operating cash flow grew at double-digit, closing the year with a 16% increase [3] - The company delivered BRL 4 billion in cash dividends and BRL 750 million in share buybacks, achieving a 139% payout ratio [14] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.4% year-on-year, with postpaid revenues growing by 9.5% in Q4 [5][6] - Postpaid ARPU reached almost BRL 55, growing 3.1% year-on-year [6] - Prepaid segment showed signs of stabilization, with revenue decline decelerating for the third consecutive quarter [7] - Broadband revenues returned to growth in Q4, with UltraFibra revenues increasing by 6.2% year-on-year [9] Market Data and Key Metrics Changes - TIM remains the leader in 5G in Brazil, covering over 1,000 cities, which is 52% more than the second player [4] - In B2B, total contracted value surpassed BRL 1 billion across various verticals [4][10] Company Strategy and Development Direction - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [16][17] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [15] - The company is prepared to capture new opportunities in B2B with a scalable portfolio integrating connectivity and digital services [16] Other Important Information - Operating costs grew only 1.8% year-on-year, reflecting ongoing efficiency programs [12] - The company completed a significant network modernization project in São Paulo, enhancing service quality [8] Q&A Session Questions and Answers Question: On margins and efficiency, how much of the efficiency is structural? - Management indicated that the efficiency gains are largely structural, with some temporary effects in Q4 due to interconnection costs and taxation changes [21][26] Question: Regarding the acquisition of I-Systems, what does this suggest about the company's commitment to the asset? - Management clarified that the acquisition provides control over operations and is not indicative of a potential sale of the fiber business, emphasizing a focus on value generation [24][25] Question: What are the main drivers behind the decrease in network and interconnection expenses? - Management noted that while visitor interconnection costs decreased, there were increases in costs related to digital content providers and network expansion [31][37] Question: Can you provide more details on the price increases planned for Q1? - Management confirmed that price adjustments for postpaid customers are underway, similar to previous years, with adjustments occurring in phases [59] Question: What is the outlook for tower lease negotiations and expenses? - Management stated that ongoing negotiations are aimed at maintaining lease costs below revenue growth, despite pressures from inflation and network expansion [50][52]

Financial Data and Key Metrics Changes - Service revenue grew by 5.2% year-on-year, exceeding inflation [2] - EBITDA increased by 7.5%, with an EBITDA margin reaching 51% [2][10] - Operating cash flow expanded by 16%, closing the year with a margin of 22.7% [2][11] - The company returned BRL 4 billion in cash dividends and BRL 750 million in share buybacks, achieving a payout ratio of 139% [2][11] Business Line Data and Key Metrics Changes - Mobile service revenues increased by 5.4%, with postpaid revenues growing by 9.5% in Q4 [4][5] - Postpaid ARPU reached almost BRL 55, reflecting a year-on-year growth of 3.1% [4] - Broadband revenues returned to growth in Q4, with a 6.2% year-on-year increase [6][7] - B2B solutions surpassed BRL 1 billion in total contracted value, confirming its role as a growth engine [3][8] Market Data and Key Metrics Changes - TIM remains the leader in 5G coverage in Brazil, with coverage in over 1,000 cities, 52% more than the second player [3] - The company achieved significant milestones in various sectors, including agribusiness and logistics, enhancing its market position [7][8] Company Strategy and Development Direction - The company aims to drive value creation through mobile, B2B, and broadband, supported by artificial intelligence, efficiency, and ESG initiatives [13][14] - The acquisition of I-Systems is expected to enhance operational efficiency and customer experience [16][21] - The focus remains on strengthening profitability and improving customer experience in mobile services [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue creating value for stakeholders as it enters 2026 [12] - The company is prepared for potential challenges in the competitive landscape, particularly regarding mobile portability and pricing adjustments [30][32] Other Important Information - The company completed a network modernization project in São Paulo, enhancing 5G and 4G coverage [6] - The efficiency program has been a core part of operations, with operating costs growing below inflation at 1.8% year-on-year [10] Q&A Session Summary Question: On margins and efficiency, how much of the efficiency is structural? - Management indicated that the efficiency gains are largely structural, with some temporary effects in the fourth quarter [18][23] Question: Regarding the acquisition of I-Systems, what does this suggest about the company's commitment to the asset? - The acquisition is seen as a strategic move to enhance operational efficiency and customer service, with no plans to sell the broadband operation [21][22] Question: What are the main drivers behind the decrease in network and interconnection expenses? - Management noted that while some costs decreased, others, such as those related to content providers, increased due to new offers [28][34] Question: How does the company view mobile competition and portability trends? - The company maintains stable churn levels and believes the market remains rational despite increased portability [30][32] Question: Can you provide insights on the upcoming price increases? - Price adjustments for postpaid customers are underway, with a similar magnitude to previous years [55][56] Question: What is the outlook for CapEx in the coming years? - CapEx is expected to remain in line with guidance, with opportunities for efficiency and anticipation of investments [55][57]

This presentation contains declarations that constitute forward-looking statements regarding the intent, belief or current expectations of value creation, customer base dynamics, estimates regarding future financial results and other aspects of the activities. Classificado como Uso Interno Disclaimer 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 ...