SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of March, 2020

Commission File Number 001-14491

 


 

TIM PARTICIPAÇÕES S.A.

(Exact name of registrant as specified in its charter)

 

TIM PARTICIPAÇÕES S.A.

(Translation of Registrant's name into English)

 

Avenida João Cabral de Melo Neto, nº 850, Torre Norte, 12º andar – Sala 1212,
Barra da Tijuca - Rio de Janeiro, RJ, Brazil

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

 

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____ 


 
 


 

TIM PARTICIPAÇÕES S.A.

Publicly-Held Company

Corporate Taxpayer's ID (CNPJ/MF): 02.558.115/0001-21

Corporate Registry (NIRE): 33 300 276 963

TIM S.A.

Closed Company

Corporate Taxpayer's ID (CNPJ/MF): 02.421.421/0001-11

Corporate Registry (NIRE): 33.300.324.631

 

 

MATERIAL FACT

 

STRATEGIC PLAN 2020-2022 AND GUIDANCE RELEASE

 

 

TIM PARTICIPAÇÕES S.A. (“Company” or “TPAR) (B3: TIMP3; NYSE: TSU) and its wholly owned subsidiary TIM S.A. (“Subsidiary” or “TSA”), 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 2020-2022 period. In this context, TIM updates the forecasts of its Strategic Plan 2019-2021, released to the market through a Material Fact dated February 21st, 2019.

 

The Company releases this update after a year of consistent improvements, with the achievement of a significant part of the short-term objectives outlined in its Strategic Plan 2019-2021, which demonstrates the correctness of the strategy implemented throughout the year. These objectives were achieved despite macroeconomic expectations that were not confirmed due to a slower and more unstable recovery of the economy, compared to projections made by the market in general and by TPAR and its subsidiary.

 

Projections 2019-21

with IFRS 9+15

KPIi

2019 Projection (Short Term)

2019 Results

Service Revenues Growth (YoY)

 3-5%

2.4% 

EBITDA Growth (YoY)

Mid to High-Single Digit Growth

6.7%

EBITDA Margin

≥39% in 2020 

39.1%

% CAPEX over Net Revenues

Low 20’s

22.2%

% EBITDA – CAPEX over Net Revenues

>15% 

16.9%

IoE distribution

~R$ 1 bln

R$ 995 mln

 

TIM, however, in this new triennium, reaffirms its commitment with (i) the preservation of an austere approach in cost controls, aiming to raise the profitability of its operation, and so it adjusts the goal to exceed the level of 40% EBITDA Margin in 2022, as well as (ii)  an efficient capital allocation, characterized by the CAPEX destination to infrastructure (network and IT) extension and modernization projects, and (iii) the continuous expansion of the cash generation characterized by the growth of EBITDA – CAPEX over Revenues indicator to surpass the level of 20%.

 

 

 
 


 

 

Projections 2019-21

with IFRS 9+15

Projections 2020-22

with IFRS 9+15 and IFRS16

KPI [i]

2019 (Short Term)

Long Term

2020 (Short Term)

Long Term

Service Revenues

Growth (YoY)

3-5% 

CAGR ’18-’21

Mid-Single Digit

Mid-Single Digit

CAGR ’19-’22

Mid-Single Digit

EBITDA Growth (YoY) /

% EBITDA Margin

Mid to High-Single Digit Growth

≥39% in 2020 

Mid-Single Digit

≥40% in 2022

(≥47% w/ IFRS 16)

% CAPEX over Net Revs.

/ ∑ CAPEX

Low 20’s

 ~R$ 12.0 bln (∑‘19-’21)

Low 20’s

R$ 12.0 - 12.5 bln

(∑‘20-’22)

% EBITDA – CAPEX

over Net Revenues

>15% 

≥20% in 2021

>16%

(>20% w/ IFRS 16)

≥20% in 2022

(≥25% w/ IFRS 16)

 

 

Lastly, TIM presents, as an attachment to this Material Fact, additional details about the 2020-2022 Strategic Plan and its guidance. 

 

 

 

 

Rio de Janeiro, March 10th, 2020.

 

 

 

TIM Participações S.A.

TIM S.A.

Adrian Calaza

Chief Financial Officer and

Investor Relations Officer

 

Adrian Calaza

Chief Financial Officer and

Investor Relations Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 



 



 



 



 



 



 



 



 



 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

TIM PARTICIPAÇÕES S.A.

 

 

 

 

 

Date: March 10, 2020

By:

/s/ Adrian Calaza

 

   

 

 

 

 

Name: Adrian Calaza

 

 

 

Title: Chief Financial Officer and Investor Relations Officer
TIM Participações S.A.

 

 

FORWARD-LOOKING STATEMENTS

 

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will a ctually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

 

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