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3Q10 Results Presentation November 16th, 2010

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Warning -

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 forward looking 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.

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Highlights

9.9% Highest EBIT margin over the last 15 quarters

-7% Reduction in adjusted* CASK ex-fuel 3Q10 x 3Q09

6%Increase in adjusted* RASK 3Q10 x 3Q09

* Adjusted values excluding the effect of the additional tariff reversal

82.7% Highest international load factor in a quarter

84.7%Highest international load factor in our

history recorded in October

12.6h/dayAircraft utilization registered is 4.4% higher

than the 3Q09

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Milestones of the TAM & LAN Combination

Non-Binding MOUOn August 13, a non-binding Memorandum of Understanding was signed between TAM and LAN, outlining the intention to combine.

Due Diligence ProcessThe due diligence process was completed in September.

ANAC PresentationThe definitive structure of the transaction was presented to the

Brazilian aviation authority –

ANAC (National Civil Aviation Agency), on October 20.

We believe that all steps should be completed between April and June 2011

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Our net revenue increased 23%

Net revenue (Million)

Operating expenses (Million)

EBIT (Million)

EBIT margin

EBITDAR (Million)

EBITDAR margin

Financial result + Others*(Million)

Net income (Million)

2,939

2,248

691

23.5%

975

33.2%

458

740

2,381

2,325

56

2.3%

348

14.6%

402

228

3Q10 vs

3Q09

23.4%

-3.3%

1,137.0%

21.2p.p.

180.3%

18.6p.p.

13.8%

224.0%

3Q10 vs

2Q10

12.5%

-12.8%

2,012.2%

22.2p.p.

237.2%

22.1p.p.

-

-

In Reais 3Q103Q10 3Q093Q09 2Q102Q10

2,611

2,579

33

1,3%

289

11.1%

(211)

(154)

Passengers revenue (Million) 2,369 1,971 20.2% 9.7%2,160

Cargo revenue (Million) 276 238 16.0% -3.0%285

Other revenues (Million) 369 262 41.2% 31.3%281

* Others includes “Movements in fair value of fuel derivatives”

and “Gains (losses) on aircraft revaluation”

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We reversed the additional tariff provision positively impacting 3Q10 results

JUN 2001AUG 2010 3Q 2010

SEP 2010Ad infinitum

Accounting for additional tariff, calculated at 1% on

the fare for all regular domestic tickets sold

Accounting provision reversion in the amount of R$

585.9 million

Operating profit impact (EBIT, EBITDA, EBITDAR) of R$ 404.7

million

Impact of R$ 181.2 million in the financial results

Net income impact of R$ 439.5 million

The Superior Court of Justice confirmed the

decision that definitively releases the Company

from paying the additional tariff

Ad infinitum positive impact of about 0.5%* of

the company's gross revenues

*Positive impact of 1% on regular domestic revenues. Participation of regular domestic revenue on the total gross revenue is about 50%.

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We reached the highest EBIT margin from the past 15 quarters: 9.9%

Adjusted Net Revenue (million)

Ad. Operating Expenses (million)

Adjusted EBIT (million)

Adjusted EBIT MarginAdjusted EBITDAR (million)

Adjusted EBITDAR MarginAd. Financ. Result + Others* (million)

Adjusted Net Income (million)

Total Adjusted RASK (cents)

Adjusted CASK (cents)

Adjusted CASK ex-fuel (cents)

Adjusted CASK USD (cents)

Adjusted CASK USD ex-fuel (cents)

3Q10 vs 3Q09

3Q10 vs 2Q10

In Reais 3Q103Q10 3Q093Q09 2Q102Q10

Note: Adjusted figures dos not consider the additional tariff reversion impact

* Others includes “Movements in fair value of fuel derivatives”

and “Gains (losses) on aircraft revaluation”

2,899

2,613286

9.9%

570

19.4%276

301

15.7

14.2

9.4

8.1

5.4

2,381

2,32556

2.3%

348

14.6%402

228

14.8

15.4

10.1

7.8

5.4

21.7%

12.4%411.9%

7.5p.p.

63.9%

4.8p.p.-31.3%

31.6%

6.3%

-1.9%

-6.6%

4.6%

-0.4%

11.0%

1.3%774.1%

8.6p.p.

97.3%

8.3p.p.-

-

2.3%

-6.6%

-7.5%

-4.3%

-5.2%

2,611

2,57933

1.3%

289

11.1%(211)

(154)

15.4

15.2

10.2

8.5

5.7

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1,307 1,428 1,466

3Q09 2Q10 3Q10

Passenger Revenue - R$ Million

20.7 22.518.6

3Q09 2Q10 3Q10

Yield - R$ Cents

6,323 6,3357,897

3Q09 2Q10 3Q10

9,891 10,35711,919

ASK, RPK and Load Factor

Load Factor 67% 61% 70%

8%

13.0 13.0 12.4

3Q09 2Q10 3Q10

RASK - R$ Cents

5%

3%

18%

25%

We increased by 12% our domestic passengers revenue and our load factor by 3 p.p

comparing to the previous year

Domestic PassengersDomestic Passengers

18%

25%

12%

10%5%

*

*

* Does not consider the additional tariff reversion impact

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Load factor at the "off peak" hours increased considerably

*Domestic flights at weekdays

Load factor x Hour *

Off Peak Peak Off

PeakOff

PeakPeak

-12 p.p.

-8 p.p.

65% 65%

72%73%

10 11 12 13 14 15 16 17

54%54%

66%

61%

10 11 12 13 14 15 16 17

3Q10

2Q10

50%

55%

60%

65%

70%

75%

80%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

2T10 3T102Q10 3Q10

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We continue increasing sales through direct channels, obtaining several benefits

Website

Others

3Q09 2Q10 3Q10

416465

581

0

200

400

600

Direct channel sales - Brazil(R$ Million)

% direct channel% website

24%

16%

24%

17%

26%

19%

17%

26%

1%22%

•

Sales channel with

lower operating costs

•

Important research

tool for price-sensitive passengers

•

Through the website

you can view all the fare bundles, directing the passenger for the fare

that best suits their profile

•

Helps passengers with

flexible travel dates to find the cheaper tickets

•

Sales channel with

lower operating costs

•

Important research

tool for price-sensitive passengers

•

Through the website

you can view all the fare bundles, directing the passenger for the fare

that best suits their profile

•

Helps passengers with

flexible travel dates to find the cheaper tickets

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1.9 1.8 1.7

3Q09 2Q10 3Q10

U$ 7.3 U$ 8.1 U$ 8.7

3Q09 2Q10 3Q10

R$ 13.6 R$ 14.5 R$ 15.2

Yield - Cents

7%

-2%

RPK4,878

5,0555,945

3Q09 2Q10 3Q10

ASK6,585 6,621

7,184

ASK, RPK and Load Factor

Load Factor 74% 76% 83%

In dollars, we increased by 45% our international passengers revenue and our RASK by 33% comparing to the previous year

U$356 U$409U$516

3Q09 2Q10 3Q10

R$664R$732

R$903

Passenger Revenue - Million

U$5.4 U$6.2 U$7.2

3Q09 2Q10 3Q10

R$10.1R$11.1

R$12.6

Scheduled RASK - Cents

Avg

US DollarAvg

US Dollar

International PassengersInternational Passengers

9%

9%

22%

18%

12%

5%

19%

36%

23%

26%

45%

25%

14%

16%

33%-6%

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By the end of 2010 we will have five new international flights in three continents

Rio de Janeiro –

LondonRio de Janeiro –

Frankfurt

Started

in August

Belo Horizonte –

MiamiBrasília –

MiamiSão Paulo –

Bogota

To begin in December

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Liquidity and debt profile

Cash 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

2005 2006 2007 2008 2009 3T10

995

2,4532,607

1,9142,166

2,333

0

500

1,000

1,500

2,000

2,500

3,000

87%

13%

Adequate debt profileAdequate debt profile Liquidity PositionLiquidity Position

Adjusted Net Debt / EBITDARAdjusted Net Debt / EBITDAR

US$

Obs.1: 2010 EBITDAR considers last 12 months from 3Q10Obs.2: Net Debt Adjusted includes annual operating leases x 7Obs.3: Debt is considered in US GAAP for 2005 and 2006 and in IFRS since 2007

R$ Million

Debt mix by currency

R$

US$

Debentures, bonds and othersLeasing on the balance sheet

4.1

2005 2006 2007 2008 2009 3T10

3.8

2.1

5.66.3 6.5

5.1

0.0

2.0

4.0

6.0

8.0 Without additional tariff reversal

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2010 Guidance

Domestic MarketDomestic Market Demand growth (RPK) 22% -

25% 25%

Supply growth (ASK) 12% 9%

Domestic 14% 11%

International 8% 7%

Load factor 69% 72%

Domestic 66% 67%

International 75% 80%

New international frequency or destination 2 5 1

CASK ex-fuel -6% -9%2

Average WTI USD 85 USD 78

Average US dollar rate R$ 1,81 R$ 1,77AssumptionsAssumptions

Guidancefor 2010

Guidancefor 2010

ActualJan - OctActual

Jan - Oct

1 Two new flights started (from Rio de Janeiro to Frankfurt and London) and three have been authorized by ANAC to begin in December (São Paulo to Bogota, and Brasilia and Belo Horizonte to Miami)2 Considers the period from January to September

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Fleet plan

B767 Airbus wide-body Airbus narrow-bodyB777 ATR-42

43

A340 - 2

A33016

A321 - 5

A32081

A31921

43

2

18

7

83

26

5

43

2

18

7

85

27

5

43

2

20

9

85

30

5

83

20

128

103

18

132

10

21

137

2009 3Q10 2010 2011 2012 2013 2014

132

148 151158 159 163

168

Total Fleet (end of period)Total Fleet (end of period)

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invest@tam.com.br www.tam.com.br/ir