July 30 - August 1st, 2008

Credit Suisse

2nd Annual Midsummer Latam Conference

2

Information and Projection

This 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.

3

The domestic market grew 11% from January to June 2008

Source: ANAC

PreviousPeriod

CurrentPeriod

J F MAM J J A S OND J F MAM J J A S OND J F MAM J J A S OND J F MAM J80859095

100105110115120125130

Domestic Market - Variation(vs previous period)

2007

2005

2006

2008

Accum. market growth 2006

12%

Accum. market growth 2005

19%

Accum. market growth 2007

12%

Accum. market growth 2008

11%

4

PreviousPeriod

Market

TAM

J F MAM J J A S OND J F MAM J J A S OND J F MAM J J A S OND J F MAM J40

60

80

100

120

140

160

180

200

International Market - Variation(vs previous period)

The international market (among Brazilian carriers) is recovering, and grew 40% in 2008…

Source: ANAC

Accum. Marketgrowth 2008

40%

Acum TAM 200641%

Acum TAM 2007 71%

Acum TAM 200540%

Acum TAM 2008 46%

Accum. market growth 2005

7%

Accum. market decrease 2006

30%

Accum. market decrease 2007

5%

2007

2005

2006

2008

5

…but Brazilian carriers are transporting less passengers than the international ones…

58.2%

41.8%

57.7%

42.3%

66.9%

33.1%

71.2%

28.8%

69.8%

30.2%

2004 2005 2006 2007 June2008*

0

20

40

60

80

100%

% international passenger

BrazilianCarriers

IntlCarriers

Source: ANAC annual report

* estimates

6

…due to lower utilization of frequencies allowed in the bilateral agreements

77

107

147

2821

357

10535

Italy

England

Germany

France

Spain

USA

1414

1414

2121

3030

5151

105105

150 100 50 0 50 100 150

Weekly Frequencies

Brazilian Carriers Foreign Carriers

Available space on bilateral Operated by Brazilian Carriers Operated by Foreign Carriers

7

We are both domestic and international market leaders

TAM’s Domestic Market Share*TAM’s Domestic Market Share*

Source: ANAC

* RPK – Revenue passenger kilometer

TAM’s International Market Share* – Among Brazilian carriersTAM’s International Market Share* – Among Brazilian carriers

33,0%35,8%

48,0% 48,9% 49,1% 48,2% 48,6%43,5%

2003 2004 2005 2006 2007 Jan - Jun 2008 2Q08 jun/08

12,0% 14,3%

37,5%

67,5% 70,6%74,0% 75,3%

18,8%

2003 2004 2005 2006 2007 Jan - Jun 2008 2Q08 jun/08

8

We are strengthening our network in the international market through fleet and partnerships Increased widebody fleet plan for the next 10 years,

substituting older aircraft 2 A340s (delivered in 2007)

8 B777-300ERs (4 in 2008, 4 in 2012)

22 A350s (as of 2013)

New A330 reducing Airbus fleet average age

2 B767-300ERs

Complete phase-out of F100 (impact on intra South American routes)

Expansion of network through additional destinations and frequencies

New full code share agreements at each major country – United Airlines; Lufthansa; LAN Group and TAP

Memorandum of understanding with Air Canada end Swiss

Focus on South American coverage – integration of TAM Airlines (Mercosur) activities

9

The international operations works as a natural hedge

24%

76%

33%

67%

2006 20070

20

40

60

80

100%

Revenue(Passenger + Cargo)

DomesticInternational

Dollarexchangerate

DomesticInternational

2.138

73%27%

1.771

64%36%

Approximately 50% of our costs

(including fuel) are exposed to foreign

currencies

Approximately 50% of our costs

(including fuel) are exposed to foreign

currencies-17%

ASK proportion

Revenues originated in the

international operations are

expected to reach 45% - 50% until

Dec/2008

Revenues originated in the

international operations are

expected to reach 45% - 50% until

Dec/2008

10

158157

506

1,093

199

214

613

1,321

1Q07 1Q08

1,913

2,347

0

500

1,000

1,500

2,000

2,500

Gross Revenue (R$ M)

Dom.Pax

Int.Pax

Cargo

Others

Domestic passenger revenue

grew 21%

RPK increased 15%

ASK increased 14%

International passenger

revenue grew 21%

RPK increased 61%

ASK increased 50%

Cargo revenue grew 37%

Other revenue grew 26%

Our gross revenue increased 23%...

23%

11

...but total RASK reduced 2%...

RASK total ¹ ²

RASK scheduled domestic²

Domestic load factor - %

Yield scheduled domestic³

RASK scheduled international²

International load factor - %

Yield scheduled international³

Yield scheduled international³ (USD cents)

1Q071Q07

16,72

14,54

69,4

22,00

14,07

71,3

19,78

9,65

4Q074Q07

17,87

16,69

70,4

24,90

11,26

71,0

15,88

8,96

1Q081Q08

16,38

15,37

69,9

23,09

11,39

76,9

14,82

8,47

1Q08 vs 1Q07

1Q08 vs 1Q07

-2,1%

5,7%

0,5 p.p.

5,0%

-19,0%

5,6 p.p.

-25,1%

-12,2%

1Q08 vs 4Q07

1Q08 vs 4Q07

-8,3%

-7,9%

-0,5 p.p.

-7,3%

1,2%

5,9 p.p.

-6,7%

-5,4%

R$ Cents

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

12

CASK

CASK excl-fuel

1Q07 1Q08

15.92 16.25

0

5

10

15

20

Total CASKBR GAAP - R$ cents

1Q08 vs 1Q07

-5.5%

2.1%

...while total CASK increased 2%...

13

...reducing the spread (RASK-CASK)...

1Q07 1Q08

16.72 15.92 16.38 16.25

0

5

10

15

20

RASK/CASK (R$ Cents)BR GAAP

RASKCASK

EBITMargin

Spread

4.8%

0.80

0.8%

0.13

14

1Q07 1Q08

340

272

0

100

200

300

400

EBITDAR - R$ M

...impacting our margins in BR GAAP...

Margin over net revenue

1Q07 1Q08

88

18

0

20

40

60

80

100

EBIT - R$ M

1Q07 1Q08

59

30

20

40

60

80

Net Income - R$ M

BR GAAP

-20%

19%

12%

-80%

5%

0,8%

3% 0,1%

-96%

15

1Q07 1Q08

331

283

0

100

200

300

400

EBITDAR - R$ M

...and in US GAAP...

1Q07 1Q08

146

83

0

50

100

150

EBIT - R$ M

1Q07 1Q08

138

47

0

50

100

150

Net Income - R$ M

US GAAP

Margin over net revenue

-14%

18%

13%

-43%

8%

4%

8%

2%

-66%

16

1Q07 1Q08

0.39

0.02

Earnings per shareBR GAAP (R$)

1Q07 1Q08

0.92

0.31

Earnings per share US GAAP (R$)

-96%

...reducing our earnings per share

-66%

17

BR GAAP Leasing IncomeTaxes

Others US GAAP

3

57

-19

6 47

0

20

40

60

Net Profit Reconciliation to US GAAP

44 aircrafts are reclassified as capital

leases as per SFAS nº 13

44 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

18

We are well positioned compared to other airline companies

Rep

ublic

Cop

a

Wes

tJet

Lan

Alle

gia

nt

Jazz

Sky

Wes

t

Sou

thw

est

TA

M

Pinnac

le

JetB

lue

Air

Can

ada

AC

E A

viat

ion

Gol

Con

tinen

tal

Del

ta

AM

R

Nor

thw

est

Ala

ska

Air

Tra

n

US

Air

way

s

Exp

ress

Jet

UA

L

18% 17%

14%

12%11%

9%8%

4% 4% 3%2%

-0% -1% -1%-2%

-3% -3% -3%

-5% -6%-7% -8%

-9%-10

-5

0

5

10

15

20%

Operating Margin (Mar Q 2008) US GAAP

19

Our balance sheet remains solid

R$ million - BRGAAP 2008* 2007 2006 2005 2004

Cash 2,226 2,607 2,453 995 297

Short-Term Debt 959 1,098 363 216 204

Long-Term Debt 1,365 1,345 895 425 399

Total Debt 2,324 2,443 1,258 641 603

Shareholder's Equity 1,489 1,527 1,449 760 191

Capitalization 2,855 2,872 2,344 1,185 590

Aircraft and flight equipment leases 5,949 5,976 5,032 4,389 4,557

Total Debt Adjusted 8,273 8,419 6,290 5,030 5,160

Total Capitalization Adjusted 8,804 8,848 7,376 5,574 5,147

Debt / Capitalization 81% 85% 54% 54% 102%

Adjusted Debt / Adjusted Capitalization 94% 95% 85% 90% 100%

Adjusted Net Debt / Adjusted Capitalization 69% 66% 52% 72% 94%

* LTM

20

Brazilian domestic market has high growth potential

Boardings per capita

Boardings per capita, adjusted by GDP per capita at PPP

Source: World Bank Data, Credit Suisse Research as of 2006

Annual Trips / Person

1.70

1.85

2.32

0.62

0.60

0.55

0.50

0.82

Japan

US

Argentina

Chile

Mexico

Russia

Brazil

Germany

100107.3

111.4117.4100

140.6

157.6

100

121.2

175.4

228.2

256.8

104.9

176.4

112.0

2003 2004 2005 2006 2007

Market’s RPK

GDP

TAM’s RPK

Growth of Brazilian Domestic Market

21

High concentration of passengers in 11 airports

Source: ANAC

Important barrier to

entry for newcomers

Limited ability for other

competitors to grow

11 main airports in Brazil

carry 72% of all

passenger traffic

TAM has in aggregate

~40% of all slots

available in these

airports

% Total Domestic Passengers Boarded% TAM slots

43%

34%

39%

32%

44%

42%

27%

26%

40%

32%

46%

0% 5% 10% 15% 20%

FOR

SDU

REC

CWB

POA

CNF

SSA

GIG

BSB

GRU

CGH

20062007

22

As Brazil becomes “stable”, the leisure segment will become increasingly more important

Leis

ure

Busi

nes

s

2000 2001 2002 2003 2004 2005 2006 2007

17.9

26.6 27.025.2

28.2

35.4

39.7

44.4

0

10

20

30

40

50

Domestic Market Passenger Mix (RPK M)

CAGR

11%

22%

Traveling is one of the top “desire” items for consumption

* TAM Estimates

23

We will be expanding our fare bundle strategy for the domestic market in 2008...

Addition of extra features in the segmented bundles

Ability to “sell up” categories

Potential for further revenue increase

Harmonization of the fare bundle strategy to TAM Fidelidade growth

24

...increasing capillarity of sales through our new methods of payments... Launched new methods of payment in May 2007

Payment at lottery stores Approximately 9,000 stores in Brazil

Already functioning as bank correspondent

Billing slips

Automatic debit

Financing for passengers via direct consumer credit with the main retail banks

Focus on leisure/lower income segments

25

...optimizing the utilization of our aircraft on off peak hours

* Average day in October, 2007

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2350

55

60

65

70

75

80%

Domestic load factor per hour

Off Peak Off Peak Off PeakPeakPeak

26

We are beginning to evaluate new potential business units in the company

TAM Linhas AéreasTAM Linhas Aéreas

MRO(São Carlos)

MRO(São Carlos)

Loyalty ProgramLoyalty

Program HandlingHandlingCargoCargo

Already structured as a business unit with focus in maximizing assets

None or little focus on selling services to third-parties

Not structured as business units

27

We have a positive outlook for 2008

Maintain leadership in both domestic and international markets

ASK growth of

Domestic 14%

International 40%

Average load factor at approximately 70% overall

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

Three additional international destinations or frequencies in 2008

Domestic market demand growth from 8% to 12% (in RPK terms)

2008 Guidance2008 Guidance

TAMTAM

MarketMarket

Actual - 1Q08Actual - 1Q08

10.8%*

49.1% dom*70.6% intl*

14.2%

49.7%

73.2%

-5.5%

---

* From January to June

28

Our growth plan is supported by a flexible fleet plan

3

14

88

10

4

2

16

101

4

2

18

104

4

2

20

110

4

2

22

113

8

2

22

115

2007 2008 2009 2010 2011 2012

115123

128136

141147

0

50

100

150

Total fleet

B777 MD11 Airbus wide-body Airbus narrow-body F100

Since dec/07 we

are monofleet in

domestic operations

Since dec/07 we

are monofleet in

domestic operations

B767

29