1Q12 R l Q Results Presentation

May,14 May 14 2012

invest@tam.com.br

www.tam.com.br/ir

Warning - Information and Projection

This notice may contain estimates for future events. These estimates merely reflect the expectations of the Companys Company s management, and involve risks and uncertainties. The Company is not responsible for investment operations or decisions taken based on information contained in this communication. These estimates are subject to changes without prior notice. This material has been prepared by TAM S.A. (TAM or the Company) includes certain forward-looking statements that are based principally on TAMs current expectations and on projections of future events and financial trends that currently affect or might affect TAMs business, and are not guarantees of future performance They are based on managements TAM s business performance. management s expectations that involve a number of business risks and uncertainties, any of each could cause actual financial condition and results of operations to differ materially from those set out in TAMs forward-looking statements. TAM undertakes no obligation to p g publicly update or revise any forward looking statements. y p y g This material is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and should not be treated as giving investment advice It has no regard to the specific investment objectives financial situation or particular needs of any advice. objectives, recipient. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. j g

1. Highlights 2. LATAM

Agenda

3. Financial Results

1. Highlights g g

Highlights of our business units g g

New market campaign: When we talk, we fly together We have earned f the fourth time the "Deal of the W h d for th f th ti th "D l f th Year" Better fuel management in Latin America Certification to provide maintenance services for ATR-72 Integration to the Airbus MRO Network Profile on social networks f Facebook and Twitter Award: Best Performance of Thalys y Launched kiosks at Po de Aucar store TAM Fidelidade receives Freddie Awards TAM

Signature of definitive agreements regarding the joint venture with AIMIA Partnership between TAM Cargo and Multiplus

New cargo terminal in So Paulo

We revised our 2012 guidance g

Guidance 2012 Original Domestic Market
Min. Max.

Guidance 2012 Reviewed

Min. Max.

Real 2012 Jan - Mar

( ) Demand Growth (RPK) Supply growth(ASK)

Domestic International

8% 1%
0% 1%

11% 3%
2% 3%

7% -1%
-2% 1%

9% 1%
0% 3%

7% 4%
5% 3%

Load Factor
Domestic International

76%
72% 83%

78%
74% 85%

76%
72% 83%

78%
74% 85%

73%
68% 83%

Assumptions

Average WTI Average US dollar rate

95 1.74

95 1.82

103 1.77

We maintained our fleet plan unchanged

156
180 150 120 90 60 30 0 1T12 AirbusNarrowbody 2012 2013 2014 Boeing777 2015 Boeing767 AirbusWidebody 127 124 129 9 134 140 3 4 22

157
3 8 22

162
3 10 20

169
12 23

176
12 24

1. Destaques q 2. 2 LATAM

Final steps in the Merger with LAN

May 7: 7: CVM approved the Edital May 10: Launch of the Exchange Offer

May 9: F4Form Declared Effective Eff ti

June12: Closing of the Exchange Exchange Offer

ExpectedannualsynergiesofUS$600toUS$700millionfullyachievedbytheendofthe fourthyear,ofwhichUS$170toUS$200millionwillbeachievedbytheendofthefirst y year. OnetimecostofbetweenUS$150toUS$200million.

9

3. Financial Results

10

Multiplus Highlights
24.5% growth in Points Issued
vs 1Q11

R$

430 mln in Gross Billings

(26.6% growth vs 1Q11)

R$

261 mln in Dividends paid

(including interest on capital)

400 thousand new Members

vs 4Q11 reaching 9 8 million members 4Q11, 9.8

11

11

Multiplus Results
R$ 430.4 mln in gross billings
R$ mln

Net revenue of R$ 347.1 million

R$ mln & mln points

397.3 339.9 354.6

433.6

430.4 285.1 242.0 10.9 9.0 12.5 321.5

398.3 398 3 17.4

347.1

15.2 5

1Q11 1T11 1Q11 2T11 2Q11 3T11 3Q11 4T11 4Q11 1T12 1Q12

2Q11 3Q11 ReceitaLquida

4Q11 1Q12 Pontosresgatados

EBITDA Ajustado de R$ 91,6 milhes

R$ mln

R$ 61.6 mln in Net Income

R$ mln

92.8

91.6 70.9

81.2 70.9 61.6 51.3

89.1

81.3 81 3

82.3

1T11 1Q11

2T11 2Q11

3T11 3Q11

4T11 4Q11

1T12 1Q12

1Q11 1T11

2Q11 2T11

3Q11 3T11

4Q11 4T11

1Q12 1T12

12

We recorded a 6% increase in net revenue

InReais

1Q12

1Q11

NetRevenue(million) p g p ( ) OperatingExpenses(million)

3,228 3,252 ,

3,042 2,932 , 110 3.6% 380 12.5% 140 129 15.9 15.4 9.8 9.2 5.9

1Q12vs 1Q11 6% 11% 22% 3.3p.p. 68% 22% 2% 7% 2% 1% 4%

4Q11

3,579 , 3,281 298 8.3% 612 17.1% (78) 96 18.1 16.6 10.4 9.2 5.8

1Q12vs 4Q11 10% 1% 51% 7,9p.p. 1% 10% 1% 3,4% 1% 2%

(23) EBIT(million) 0.7% EBITMargin 298 EBITDAR(million) 9.2% EBITDARMargin FinancialResult+Others*(million) Financial Result + Others* (million) 235 NetResults(million) TotalRASK(cents) Total RASK (cents) CASK(cents) CASKexfuel(cents) CASKUSD(cents) CASKUSDexfuel(cents)
*Movements in fair value of fuel derivatives

101 16.3 16.4 10.0 9.3 5.7

13

We changed the accounting regarding reward tickets issued, issued but not flown
Flow of accrual and redemption points for airline tickets CLIENT
(loyalty program member) Awardticket issuance Periodinwhichthepassengercanusetheawardticket Revenueis recognized Products or Services
D+0 D + 180

Changing in the accounting methodology for reward tickets revenue PreviousAccountingModel P i A ti M d l

Purchase

Accrue CurrentAccountingModel POINTS

Awardticket issuance Periodinwhichthepassengercanusetheawardticket

Redeem

Revenueisrecognized onthebalancesheet as"DeferredIncome"

D+0

Revenueisrecognizedatthemomentthepassenger checkin
D + 180

TICKETS

ThechangeshavenoimpactontheMultiplusS.A.FinancialStatements

14

Adjusting* our result, we recorded 9% increase in net revenue and EBIT margin of 2.3% 2 3%
InReais

1Q12Comparison 1Q12 Comparison Accounting Adjusted

Adjustedvs Accounting 3% 0% 3.0p.p 33% 2.7p.p. 3%

NoImpact

NetRevenue(million) OperatingExpenses(million) EBIT (million)

EBITmargin

3,228 3,252 (23) 0.7% 298 9.2% 16,3

3,327 3,252 75 2.3% 397 11.9% 16.8

EBITDAR(million)
EBITDARmargin

RASKgeral (centavos)

15

* In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue

We continued with the yields recovery in the domestic market, market with an increase of 3%
Adjusted* Domestic Passengers
ASK, RPK and Load Factor
5%

Passenger Revenue - R$ Million

5% -4%

ASK 11,767

12,168
2% 2%

12,373 12 373

RPK 8,288

8,278 4Q11 68%

2% 8,426

1,511 1 511

1,641 1 641

1,583 1 583

Load Factor

1Q11 70%

1Q12 68%

1Q11

4Q11

1Q12

Yield - R$ Cents
3%

RASK - R$ Cents
0% -4% -5% 5%

18.2

19.8

18.8

12.3

12.7

12.3

1Q11

4Q11

1Q12

1Q11

4Q11

1Q12

16

* In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue

In the annual comparison, international passenger revenue increased by 22% and the RASK 20% in dollars
Adjusted* International Passengers
ASK, RPK and Load Factor
2%

Passenger Revenue - Million R$1,071 $ , R$862

4% 22% 30%

ASK 7,334

R$1,117

7,619 -2% 7,455

5%

RPK 5,838 Load Factor 1Q11 Q 80%

6,089 4Q11 Q 80%

1%

6,150 1Q12 Q 82%

U$516

U$595 6% U$631

1Q11 Q

4Q11 Q

1Q12 Q

Yield - Cents R$ 17.6 R$ 14.8

21%

RASK - Cents R$ 18.2 R$11.7

R$14.1 R$14 1
28% 7%

R$15.0

12% 31%

Avg US Dollar
6% -2%

20%
1.77

U$ 8.9

U$ 9.8

-3%

U$ 10.3

1.67

1.80

U$7.0

U$7.8 9%

U$8.5

1Q11

4Q11

1Q12

1Q11

4Q11

1Q12

1Q11

4Q11

1Q12

17

* In order to continuously improve the measure of our business, we started deferring the revenue related to the award tickets issued, but not flown, thus impacting the lines of passenger revenue

Liquidity and debt profile

Adequate debt profile
R$ Million
2,100 1,800 1,500 1,200 900 600 300 0
3,000 2,500 2,000 , 1,500 1,000 500 0

Liquidity Position
2,453 2,607 1,914 2,145 2,568 2,567 2,048

995

2005 2006 2007 2008 2009 2010 2011 1Q12

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Leasing on the balance sheet

Debentures, bonds and others

8.0

Adjusted Net Debt / EBITDAR

6.5 65 4.3 4.9

Debt mix by currency R$ $

8%

6.0

5.6 3.8 2.1

6.3 63

4.0

3.8

2.0

US$

92%

0.0

2005 2006 2007 2008 2009 2010 2011 1Q12

18

Obs.1: Net Debt Adjusted includes annual operating leases x 7 Obs.2: Debt is considered in US GAAP for 2005 and 2006 and in IFRS since 2007

Teremos sinergias entre US$ 600 milhes e US$ 700 milhes anuais
Receitas: Carga US$120-125 Milhes, Pax US$240-285 Milhes Custos US$240-290Milhes

Fonte da sinergia Carga

Valor US$ milhes 120 125

Justificativa Novos servios, compartilhamento servios de melhores prticas Maior acesso a hubs conjuntos e atratividade da rede combinada

Fonte da sinergia

Valor US$ milhes

Justificativa Consolidao de funes em aeroportos em que ambas operam Aproveitamento de economias de p escala em contratos Racionalizao dos gastos corporativos gerais e algumas funes

Aeroportos 30

Relevncia da rede

75

85

Procurement

70

100

Nova e maior conectividade

70

80

Rede combinada cria novos pares de cidades e mais servios

Corporativo 20

Novos voos

45 45

A combinao da rede suporta novos no os destinos e h bs hubs Incluindo a consolidao de contratos com companhias areas associadas e aumento da utilizao

TI

65

70

Eficincias em plataformas comuns p

Outras receitas com passageiros 35

50

Manuteno 20

25

Passageiro frequente 19 19

15

25

invest@tam.com.br www.tam.com.br/ir e Consolidao dos programas

Aproveitamento de economias de escala e de eficincias

compartilhamento das melhores prticas

Vendas 35

40

Eficincia com esforos de vendas combinados

20