Brazil DAY

New York, October 28, 2008

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

TAM: An ethical and Entrepreneurship history

May/1976

Beginning center-West Region and

then throughout Brazil

Aug/1986

Center-North Region

May/1994

Paraguay countryside

Jun/1996

South + Center-North Regions

Aug/1996

Mercosur

Dec/1996

National and

International territories

Dec/1996

National and

International territories

Feb/1961

National and

International

territories

Feb/2008

4

TAM’s corporate structure

TAM Financial

100%

TAM Capital

100%

TAM Viagens

99,99%

TAM Mercosur

94,98%

TAM Linhas Aéreas

100%

TAM Financial 2

100%

TP Participações

99,99%

5

TAM is commited to high levels of corporate

governance

Investors

BR GAAP and US GAAP simultaneous,

in Portuguese and English, with high

level of disclosed information

CVM and SEC simultaneous

Professional Board

2 members of the family

5 independent members

Audit Committee

Sarbanes-Oxley Certification

Two classes maintained

due to regulatory reasons

Same conditions

concerning the sale of the

company for both classes

of shares

53,9% Free Float

1,5% ADTV

8 local analyst meetings and

minimum 4 investor/analyst

visits abroad per year

6

0.5%

26.9%

72.6%

21.6%

19.5%

58.9%

45.5%

54.5%

53.9%

46.2%

Before IPO* 6/13/2005IPO BOVESPA

3/10/2006Follow-on Offering

BOVESPA and NYSE

June 2008

100% 100% 100% 100%

0

20

40

60

80

100%

Total Capital Paticipation

AmaroFamily***

InvestmentFunds**

Free Float

•IPO = Initial Public Offer

•**Investment Funds liquidates its position at Follow-on

***Amaro Family and its participations held 89.42% of TAM’s voting shares

Capital Market Participation

7

The leading Brazilian international carrier

Long haul market

Paris 21x per week

London 7x per week

NY 14x per week

Miami 28x per week

Milan 7x per week

Frankfurt 7x per week

Madrid 7x per week

Latin American market

Buenos Aires 63x per week

Bariloche 2x per week

Cochabamba 4x per week

Santa Cruz de Sierra 4x per week

Santiago 10x per week

Asuncion 21x per week

Ciudad del Leste 7x per week

Montevideo 7x per week

Caracas 7x per week

Lima 7x per week

Domestic market

42 destinations and through business

agreements signed with regional companies, it

reaches 79 different destinations in Brazil

Note: Based on Oct 2008 network

8

J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A SOND J FMAM J J A S40

50

60

70

80

90

100

110

120

130

140

150

160

Market - Variation(vs previous period)

Previous

Period

Domestic

Market

International

Market

The domestic market grew 10% from January to

September 2008

20072005 2006 2008

Domestic

International

19%

7%

12%

-30%

12%

-5%

10%*

36%*

Source: ANAC

* Accumulated until September

9

We are both domestic and international market

leaders

TAM’s Domestic Market Share*

Source: ANAC

* RPK – Revenue passenger kilometer

TAM’s International Market Share* – Among Brazilian carriers

33,0%35,8%

48,0% 48,9% 50,2%52,4% 52,8%

43,5%

2003 2004 2005 2006 2007 Jan - Sep 2008 3Q08 Sep/08

12,0% 14,3%

37,5%

67,5%72,4%

75,8%82,1%

18,8%

2003 2004 2005 2006 2007 Jan - Sep 2008 3Q08 Sep/08

10

No. take-offs (K)

Load Factor

- LF Dom

- LF Int

Aircraft Utilization

(block hrs/day)

- Narrow bodies

- Wide bodies

2003

76

147

61%

58%

71%

7.6

5.8

7.3

TAM S.A.2004

75

159

66%

64%

71%

8.9

6.9

12.6

2005

81

210

71%

70%

73%

11.4

10.2

14.1

2006

93

245

74%

73%

76%

12.7

12.6

15.1

No. operating aircraft

2002

102

219

55%

53%

61%

9.5

9.2

10.0

2007

110

261

70%

70%

71%

12.6

12.6

15.8

Jan-Jun

2008

115

135

72%

69%

77%

12.6

12.3

14.8

In the past 4 years, we have improved every

operational metric…

11

…resulting in an outstanding improvement in our

financial metrics

Net revenues

EBITDAR

% EBITDAR

EBIT

% EBIT

Net Income

% Net Income

2002

3,429

475

13.9%

(236)

-6.9%

(606)

-17.7%

2003

3,667

775

21.1%

(32)

-0.9%

174

4.7%

2004

4,520

1,039

23.0%

295

6.5%

341

7.6%

2005

5,649

1,140

20.2%

426

7.5%

187

3.3%

2006

7,345

1,817

24.7%

996

13.6%

612

8.3%

BR GAAP 2007

8,151

1,259

15.5%

261

3.2%

129

1.6%

Jan-Jun

2008

4,775

572

12.0%

85

1.8%

53

1.1%

12

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 Guidance

We have a positive outlook for 2008

TAM

Market

Jan – Sep 2008

10.2%

50.2% dom

72.4% intl

14.2%

32.2%

72.1%

-4.5%*

* Accumulated from January to June, 2008

** In final approval phase by ANAC

Brasília – Buenos Aires

Rio de Janeiro – Miami

São Paulo – Lima

Rio de Janeiro – NY**

São Paulo – Orlando**

13

Our growth plan is supported by a flexible fleet plan

3

14

88

10

44

16

101

44

18

104

44

20

110

44

22

113

84

22

115

2007 2008 2009 2010 2011 2012

115

125130

138143

149

0

50

100

150

Total fleet

B777 MD11 Airbus wide-body Airbus narrow-body F100

Since

dec/07 we

are

monofleet

in domestic

operations

B767

14

15

…with higher growth anticipated for Brazilian carriers

due to the unbalance in the bilateral agreements…

Source: ANAC annual report

* estimates

58.2%

41.8%

57.7%

42.3%

66.9%

33.1%

71.2%

28.8%

66.5%

33.5%

2004 2005 2006 2007 Jan - Sep

2008*

0

20

40

60

80

100%

% international passenger

BrazilianCarriers

IntlCarriers

16

…observed in many countries, as the example

between Brazil and USA

77

107

147

2821

357

10542

Italy

England

Germany

France

Spain

USA

1414

1414

2121

3030

5151

126*126*

150 100 50 0 50 100 150

Weekly Frequencies

* 21 frequencies limited to the cities in the north, northeast and central west regions of Brazil and/or Belo Horizonte

Brazilian Carriers Foreign Carriers

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

17

Our mix of international revenue reduced due to the

appreciation of Real and increase of domestic yield

34%

66%

31%

69%

2Q07 2Q080

20

40

60

80

100%

Revenue

(Passenger + Cargo)

Dollarexchangerate

Domestic

International

1.926

63%

37%

1.592

62%

38%

Approximately

50% of our costs

(including fuel) are

exposed to foreign

currencies

-17%

ASK proportion

International(Dollar denominated)

Domestic(Real denominated)

18

156

196

531

1,170

226

256

603

1,530

2Q07 2Q08

2,054

2,615

0

500

1,000

1,500

2,000

2,500

3,000

Gross Revenue (R$ M) Domestic passenger revenue

grew 31%

RPK increased 8%

ASK increased 14%

International passenger revenue

grew 13%

RPK increased 29%

ASK increased 22%

Cargo revenue grew 31%

Other revenue grew 45%

Our gross revenue increased 27%...

27%

Domestic Pax International Pax Cargo Other

19

... total RASK increased 9.5%...

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)

2Q07 1Q082Q08 vs

2Q07

2Q08 vs

1Q08

R$ Cents

1 Includes charter. cargo and Other revenues. net of taxes

2 Net of taxes

3 Gross of taxes

16.80

15.26

71.9

22.25

12.30

69.1

17.83

9.26

16.38

15.37

69.9

23.09

11.39

76.9

14.82

8.47

18.40

17.66

68.1

27.23

11.48

73.4

15.64

9.82

9.5

15.7

-3.9 p.p.

22.4

-6.7

4.3 p.p.

-12.3

6.1

12.3

14.9

-1.8 p.p.

17.9

0.8

-3.5 p.p.

5.5

16.0

6.39 6.51 7.21 12.9 10.7 RASK scheduled

international² (USD cents)

2Q08

20

...and the total CASK increased 8.4%...

CASK

CASK excl-fuel

2Q07 2Q08

16.5217.91

0

5

10

15

20

Total CASKBR GAAP - R$ cents

2Q08 vs 2Q07

-3.4%

8.4%

21

2Q07 2Q08

69

92

0

20

40

60

80

100

EBIT - R$ M

...improving our margins and earnings

Margin over net revenue

2Q07 2Q08

33

67

0

20

40

60

80

EBIT - R$ M

2Q07 2Q08

-29

50

-40

-20

0

20

40

60

Net Income - R$ M

BR GAAP

US GAAP

2Q07 2Q08

69

214

0

50

100

150

200

250

Net Income - R$ M

2Q07 2Q08

0.46

1.42

Earnings per share - R$

2Q07 2Q08

-0.19

0.33

Earnings per share - R$

103%

2%3%

-1%

2%

34%

3% 4%

4%

9%

209% 209%

22

BR GAAP Leasing Income

Taxes

Others US GAAP

50

261

-84 -13

214

0

100

200

300

400

Net Profit Reconciliation to US GAAP

46 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

23

Our balance sheet remains solid

R$ million - BRGAAP 2008* 2007 2006 2005 2004

Cash (1) 2.009 2.607 2.453 995 297

Short-Term Debt (2) 837 1.005 363 216 204

Long-Term Debt (3) 1.301 1.345 895 425 399

Total Debt (A) = (2) + (3) 2.138 2.350 1.258 641 603

Shareholder's Equity (4) 1.539 1.527 1.449 760 191

Capitalization (B) = (3 + 4) 2.839 2.872 2.344 1.185 590

Aircraft and flight equipment leases** (5) 6.193 5.976 5.032 4.389 4.557

Total Debt Adjusted (C) = (A + 5) 8.331 8.326 6.290 5.030 5.160

Total Capitalization Adjusted (D) = (3 + 4 + 5) 9.032 8.848 7.376 5.574 5.147

Debt / Capitalization (A / B) 75% 82% 54% 54% 102%

Adjusted Debt / Adjusted Capitalization (C / D) 92% 94% 85% 90% 100%

Adjusted Net Debt / Adjusted Capitalization (C - 1) / (D) 70% 65% 52% 72% 94%

* LTM

** Aircraft and flight equipment leases of the last twelve months x 7

24

Debt deals

Debentures – R$ 500 million (September 2006)

Subscription of 50,000 nominative, registered, non convertible debentures with a nominal unit value of R$ 10 thousand

6 years term with the first payment in 2010

Bonds – US$ 300 million (April 2007)

7.375% Senior Notes due 2017

Loan agreements to finance pre-delivery payment

Calyon and other banks to finance up to US$ 331 million for 4 B777-300ERs

BNP Paribas to finance up to US$ 117 million for 30 Airbus aircraft until 2010

Guaranties to support the financing of aircraft

Ex-Im Bank for the Boeing fleet

ECAs for the Airbus fleet

25

We are beginning to evaluate new potential

business units in the company

TAM Linhas Aéreas

MRO

(São Carlos)Loyalty

ProgramHandlingCargo

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

26

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

111.4117.4

100

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

27

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

% TAM slots

43%

34%

39%

32%

44%

42%

27%

26%

40%

32%

46% Fortaleza

Rio de Janeiro4

Recife

Curitiba

Porto Alegre

Belo Horizonte

Salvador

Rio de Janeiro³

Brasília

São Paulo²

São Paulo¹

% Total Domestic Passengers Boarded

0% 5% 10% 15% 20%

20062007

1 Congonhas2 Guarulhos3 Galeão4 Santos Dumont

28

As Brazil becomes “stable”, the leisure segment

will become increasingly more important

Leis

ure

Busin

ess

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

29

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

30

...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

31

...optimizing the utilization of our aircraft on off

peak hours

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 2355

60

65

70

75

80%

Load Factor per hour

2Q08

Oct 2007

Off Peak Peak Off Peak Peak Off Peak