4th UBS Latin America4th UBS Latin AmericaFixed Income ConferenceFixed Income Conference

Miami, May 17/18, 2007

2 2

Low OperatingCosts

UndisputableBetter Service

CompetitivePrices

Sustainable Strategyto Maintain Market

Leadershipand Profi tabil i ty

TAM is a low cost company with better service at competitive prices

3 3

Previousperiod

Currentperiod

J F M A M J J A S O ND J F M A M J J A S O ND J F M A M J J A S O ND J F M A8085

9095

100

105110115

120125

130

Domestic Market - Variation

2004

Source: ANAC

Accum. market growth 2006 ~12%

The domestic market growth still strong in 2007, reaching 14% in the first 4 months of the year

Accum. market growth 2005 ~19%

Accum. market growth 2004 ~12%

Accum. market growth 2007 ~14%

2005 2006 2007

4 4

33,0%35,8%

47,8% 49,0%43,5%

2003 2004 2005 2006 Jan - Apr

TAM 50,70%

GOL39,1%

Other 3,3%

Varig 4,3%

BRA 2,6%

We have been domestic market leaders since 2003, ending April with 50,7%

Domestic Market Share - Apr/07

Domestic Market Share (RPK’s)

Source: ANAC

BRA 3,4%

Varig 4,6%

Other 5,1%

TAM 48,5%

GOL 38,5%

Domestic Market Share – 1Q07

5 5

Previousperiod

Market

TAM

J F M A M J J A S O ND J F M A M J J A S O N D J F M A M J J A S O ND J F M A40

60

80

100

120

140

160

180

International Market - Variation(vs previous year)

Source: ANAC

The international market (among the Brazilian carriers) has been diminishing…

Accum. market growth 2004 ~8%

Accum. market growth 2005 ~7%

Accum. market

decrease 2006 ~30%

2004 2005 2006 2007

Accum. market

decrease 2007 ~39%

Acum TAM 2006~41% Acum TAM 2007

~78%

Acum TAM 2005~40%

Acum. TAM 2004~30%

6 6

12,00% 14,3%

37,3%

63,5%

18,8%

2003 2004 2005 2006 Jan - Apr

Varig9,3%

TAM69,7%

GOL14,5%

Other6,5%

International Market Share– Apr/07

International Market Share

Since July 2006, we are international market leaders among the Brazilian companies

Source: ANAC

TAM 60,9%

Varig12,1%

GOL 17,9%

Other9,1%

International Market Share – 1Q07

7 7

Aircraft delivery 5 new A320, 1 new A319, incorporation of 3 MD11 and redelivery of 3 F100

Strengthening of our network International market:

3rd daily frequency to Paris 2nd daily frequency to Santiago Daily flight to Milan Daily flight to Cordoba

Domestic market: New flight to Barreiras e Vitória da Conquista (Bahia) through alliances

with regional carriers Strengthening operations in Northwestern and Southern of Brazil Increase in the flights from Rio de Janeiro to Northwestern and Southern

of Brazil

1Q07 Highlights (1/2)

8 8

1Q07 Highlights (2/2)

Increase in operational efficiency Increase in block hours per aircraft/day by 4.8% yoy, from 12.4 hours to 13.0

hours Average load factor in 1Q07 of 70.8% (yoy decrease of 1.7 p.p.)

Entered into IOSA Registry (IATA Operational Safety Audit Registration )

Finalized process to obtain the Sarbanes-Oxley Act (SOX) certification

Offering of US$300 million 7.375% Senior Notes due 2017

Reelected the airline with the newest fleet in Brazil, according with Airplane Revue Magazine

Elected Best Airline of the Year, according with Airplane Revue magazine

9 9

86

103

287

1,188

158

157

506

1,093

1Q06 1Q07

1,664

1,913

0

500

1,000

1,500

2,000

Gross Revenues (R$ M)

Dom.Pax

Int.Pax

CargoOther

15%

Domestic passenger revenue growth 8%

RPK growth 22%ASK growth 22%

International passenger revenue growth 76%

RPK growth 64%ASK growth 78%

Cargo revenue growth 52% Other revenue growth 85%

Increase of sales of Loyalty Program points and expired tickets compensated by the sub-leasing

Strong revenue growth quarter over quarter

10 10

Our price differential to the second player decreased to 5%

GOLTAM

2001 2002 2003 2004 2005 2006 1Q0715

20

25

30

35

Yield scheduled domesticR$ Cents

GAP 60% 30% 18% 13% 15% 14% 5%

Note: Gol’s yield da GOL grossed up 1.05x to include taxes

11 11

1Q06

19.8

20.2

68.4

31.0

14.3

77.5

18.5

8.5

4Q06

19.3

17.5

69.7

26.4

16.6

73.7

22.6

10.6

1Q07

16.7

14.5

69.3

22.0

14.1

71.3

19.8

9.6

1Q06 vs 1Q07

-15.4%

-28.2%

0.8 p.p.

-29.0%

-1.5%

-6.2 p.p.

7.2%

13.6%

4Q06 vs 1Q07

-13.3%

-17.1%

-0.3 p.p.

-16.7%

-15.2%

-2.4 p.p.

-12.4%

-8.7%

Our total RASK reduced 15%, mainly because of the domestic yield decrease of 29%

RASK Total1

RASK Scheduled Domestic2

LF Scheduled Domestic

Yield Scheduled Domestic3

RASK Scheduled International2

LF Scheduled International

Yield Scheduled International3 (em R$)

Yield Scheduled International3 (em USD)

1 Includes charter, cargo and Other revenues, net of taxes2 Net of taxes3 Gross of taxes

12 12

CASKex-fuel

1Q06 2Q06 3Q06 4Q06 1Q07

17.4318.69 18.43

16.9815.92

0

5

10

15

20

Total CASK (BR GAAP - R$ cents)

1Q06 vs 1Q07

-7.5%

-8.7%

...and our CASK decreased 8.7% compared to 1Q06

13 13

RASKCASK

2002 2003 2004 2005 2006 1T0715

20

25

RASK/CASK (R$ Cents)BR GAAP

EBITMargin

Spread

-7.1%

-1.1

-0.9%

-0.2

6.5%

1.4

7.5%

1.5

13.6%

2.8

4.8%

0.9

The strong decline in revenue decreased the spread (RASK – CASK)…

14 14

1Q06 1Q07

376

340

0

100

200

300

400

EBITDAR(BR GAAP - R$ M)

1Q06 1Q07

189

88

0

50

100

150

200

EBIT(BR GAAP - R$ M)

Margin over Net Revenue

1Q06 1Q07

127

59

0

50

100

150

Net Income(BR GAAP - R$ M)

-9%-53% -53%

24%

19%12%

5%3%

8%

…reducing our margins in BR GAAP…

15 15

1Q06 1Q07

373

331

0

100

200

300

400

EBITDAR (US GAAP - R$ M)

1Q06 1Q07

238

146

0

50

100

150

200

250

300

EBIT(US GAAP - R$ M)

24%

15%

8%

18%

1Q06 1Q07

268

138

0

40

80

120

160

200

240

280

Net Income(US GAAP - R$ M)

8%

-11%

17%

...and US GAAP

Margin over Net Revenue

-49%-39%

16 16

BR GAAP Leasing IncomeTaxes

Others US GAAP

59.2

119.3

-44.5

3.9 137.9

0

50

100

150

200

Net Profit Reconciliationto US GAAP 39 aircrafts are reclassified as

capital leases as per SFAS nº 13

The main difference between BR and US GAAP is the accounting treatment of aircraft leasing

17 17

1Q06 1Q07

0.85

0.39

Earnings per shareBR GAAP (R$)

1Q06 1Q07

1.80

0.92

Earnings per shareUS GAAP (R$)

Our earnings per share decreased

-54% -49%

18 18

Our foreign revenues increased, reducing the mismatch in currencies

20%

80%

33%

67%

1Q06 1Q07

100% 100%

0

20

40

60

80

100%

Revenues(Passenger + Cargo)

DomesticInternational

Approximately 50% of our costs

(including fuel) are exposed to foreign

currencies

19 19

Since our second public share offer, our share had an increase in valuation of 36%

Accumulated variation since March 10, 2006

0,5

1,0

1,5

2,0

10-mar-06 14-may-2007

TAMM4 IBOVESPA DOW JONES ADR TAM

20 20

Average domestic market share above 50% Average domestic load factor at approximately 70% Aircraft utilization per day (block hour) higher than

13 hours Reduction of 7% in total CASK ex-fuel in BR GAAP

yoy Opportunity in the international market

Third frequency to ParisInauguration of two new international long haul

frequencies

Market demand growth from 10% to 15% (in RPK terms)

Guidance 2007

TAM

Market

Our expectations for 2007, disclosed in December 2006, are still the same

13.8%*

1Q07

• Since January• Milan since

March

49.0%*

72.1%*13,0

7.5%

* Jan – Apr Accumulated

21 21

Domestic Market 2007 International Market 2007

~30% increase in ASKs At least an additional 3 destinations Strengthening of international

gateways for domestic market Guarulhos Galeão

Increasing of frequency on main domestic markets Brasília Congonhas Confins

Implementing overhub flights: new city-pairs

~60-70% increase in ASKs

Additional daily frequency to Paris beginning in January

New flight to Milan in 1S07

Additional longhaul frequency or destination to be disclosed

Strengthening of Latin American presence, both frequencies and destinations

In 2007, we will be expanding both frequencies and destinations

22 22

Due to international market opportunity, we are strengthening our international partnerships...

Code-share with TAP staring operation on July: Flying to the following destinations in Portugal:

Lisbon, Porto, Faro, Funchal, Horta, Pico, Ponta Delgada, Porto Santo and Terceira; departing from the following destinations in Brazil: Rio de Janeiro, São Paulo and Brasilia.  

Linkage of the companies' mileage programs, TAM's Fidelidade and TAP's Victoria

Commercial alliance with LAN to unlimited seats sell to South America: Brazil,

Chile, Argentina, Peru, Venezuela Linkage of the companies' mileage programs,

TAM's Fidelidade and LAN PASS

23 23

3

15

88

6

4

16

103

4

20

106

4

20

112

6

20

115

2007 2008 2009 2010 2011

112123

130136

141

0

50

100

150

Total Fleet

F100

Airbusnarrow-body

Airbuswide-body

MD11B777

...increasing our fleet in 3 wide-body aircraft in 2007 to long haul destinations

24 24

Fleet and network Distribution costs Overhead

Increase of block hours to over 13 hours per day per aircraft in 2007

6 extra seats in the A319/320 fleet

Increase in direct sales through: Site improvement Fare bundles Call center outsourcing New means of payment

Insourcing of representatives

Adjusting indirect sales commissions to higher % on offpeak flights

Outsourcing of non-core activities

Redefinition of service standards

Review of spans&layers in the hierarquy

Implementation of new automated processes

Improved sourcing capabilities

Our cost targets are aggressive, but the roadmap is already laid out

In implementation

Implemented

25 25

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

8.0 13.0 18.0 23.0 28.0 33.0 38.0

2006 EBITDAR Margin (%)

Cas

h C

osts

($

cent

s/A

SK

)

We continue among the most profitable companies in the world

Source: Public Reports of December 31, 2006 (except for Air Asia and Malaysia, which refer to 2005 figures)

26 26

Information and ProjectionThis notice may contain estimates for future events. These estimates merely reflect the expectations of the

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 TAM’s current expectations and on projections of future events and

financial trends that currently affect or might affect TAM’s business, and are not guarantees of future

performance. They are based on 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 TAM’s forward-looking statements. TAM undertakes no obligation to publicly update or

revise any forwardlooking statements.

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 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.

27 27

1Q071Q07Results Presentation

São Paulo, May 10, 2007