Telecom Italia Rsp

Investor Presentation • Mar 7, 2024

Capital Market Day 07 March 2024

FREE TO RUN

• Driving the Telco Evolution
• TIM Consumer
• TIM Enterprise
• Technology & Network Strategy
• Transformation and Cost Efficiency
• TIM Brasil
• ESG
• Execution Plan, New Reporting, Financial Policy
• Closing Remarks

Driving the Telco Evolution

Pietro Labriola – CEO

Delivering the transformation announced in 2022…

Overcome vertically integrated business model (NetCo disposal)

Unprecedented deleverage leverage aligned to best-in-class peers

Strong performance both on Domestic and Brazil

Maintain strategic flexibility to accelerate growth initiatives & capture market opportunities

Restores full financial flexibility

Guidance achieved in 2022 and '23

Solid foundations to accelerate growth and unlock hidden value

… and now presenting an unprecedented opportunity to unlock value for all stakeholders

	Fit to Win	▪ Less regulated - pricing autonomy, faster time to-market	TIM CONSUMER
n u R o t e e r F		▪ Flexibility to shape commercial offering ▪ Focused strategy - implement TIM entities distinct roadmaps	TIM ENTERPRISE
			TIM BRASIL
	Technologically addicted	▪ Drive digitalization both in Italy and Brazil ▪ Technology as engine to increase cost/capex efficiency	The most distinctive digital and telco infrastructure in Italy
	Financially disciplined	▪ Prudent capital structure ▪ Strong focus on cash flow generation	Positive EFCF AL both in Italy and Brazil in plan horizon
	Strategically flexible	▪ Financial flexibility ▪ Accelerate growth both organically and inorganically ▪ Capture market opportunities	≤2x target leverage YE 2024 (1)

The heart of TIM strategy…

…bolted in each Entity

TIM CONSUMER

Turnaround completion of core business Evolution from "Pure Telco" towards a "Customer Platform" strategy

TIM ENTERPRISE

Sustainable growth fueled by ICT Operating model evolution with a shift from buy vs. make

TIM BRASIL

Capturing upsides from beyond connectivity Core business growth leveraging leading network positioning

Innovation	Open Innovation and data monetization to drive Company's innovative journey
Technology	Leveraging on 5G and full-fledged path to cloud to enhance quality and enable a new operating model Differentiation to run away from commoditization risk
HR	Increase in organizational efficiency (TIM Consumer) Resource insourcing through hiring and reskilling (TIM Enterprise)
Transformation	Digital capabilities enhancement, cost structure simplification, operating model optimization

A stronger company, committed to growth

Organic data(1), € bn, including Sparkle (2)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ avg. exchange-rate 5.40 R\$/€ (2) Sparkle financials: Revenues ~€ 0.8bn in '23 net of intercompany (~€ 0.9bn in '26 net of intercompany); EBITDA AL ~€ 0.1bn in '23 (~€ 0.2bn in '26); CAPEX ~€ 0.1bn in '23 (~€ 0.2bn in '26) (3) Preliminary unaudited figures (4) Leverage at FY '23 based on old Group view (5) Excluding shareholders remuneration. Computed as Group Net Debt AL less expected deleverage from NetCo disposal (€14.2bn not considering the impact of price adjustments and potential earn-outs), divided by Group Adj. Organic EBITDA AL less NetCo EBITDA AL

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TIM Consumer

Andrea Rossini – Chief Consumer, Small & Medium Markets Officer

From turnaround to growth

2022-23 2024-26

"Turnaround" strategy focused on fixing the core

Revenue stabilization while further addressing cost structure

Evolution towards "Customer Platform" model

Annualized sales

Completing the turnaround while setting the foundations for the "Customer Platform"

(1) Excluding Italy Source: NSR (panel: TIM, Vodafone, Iliad, Wind3, Fastweb, Tiscali), EU outlook 2024 report, expert interviews

Turnaround strategy showing steady results

Organic figures

Stabilizing the core while focusing on "Customer Platform"

Organic figures

TIM will continue to pursue CB valorization and stabilization

also through the "Customer Platform" strategy

(1) Mobile calling (2) Consumer and SMB (3) Fixed churn

CB valorization in continuity through repricing and up-selling

Customer Base stabilization leveraging convergence and FTTH migration

TIM aims to increase its offering covering high potential market segments

Split of households' spending

Roadmap for services launch

In the Plan horizon, TIM will transition from a "Pure Telco" towards a "Customer Platform" strategy

TIM Enterprise

Elio Schiavo – Chief Enterprise and Innovative Solutions Officer

Consistent journey of sustainable growth

2022-'23 2024-'26

Overperformance vs. market consolidating leading position

Service revenues Gross Margin +6% vs. +5% TIM Enterprise performance vs. Italian market CAGR '21-'23

Leading player in the PA space

2x duration of new Cloud contracts (1)

Capabilities insourcing for all factories

Sustainable growth fueled by ICT revenues

CAGR '23-'26 CAGR '23-'26

Operating model evolution

and key assets optimization

Italian ICT B2B: a sizable and growing market

Market dynamics IoT-5G Keep a constant growth of ~10% YoY in the timeframe Cloud Keep a constant growth of 15-20% YoY in the timeframe Cybersecurity Keep a constant growth of ~10% YoY in the timeframe Other IT Include services of network management and device, ICT products and application services Connectivity Zero growth considering both mobile and fixed

(1) Total addressable market for TIM Enterprise Source: SIRMI Enterprise Market 2023 (Feb. '24 update)

Higher performance vs. market average since 2022, when the journey started

Outperformed the market in both revenues and profitability, consolidating a leading position

Strengthened recurring revenues streams (+6.4% YoY in '23)

Unified go-to-market model increasing share of revenues from services developed by TIM factories (from 11% in '23 to 21% in '26)

Switch to National Strategic Hub to provide infrastructure for cloud-based management of PA

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We are on the right side of the story

2023e market value (€bn) & '23-'26 growth (%)

Leading the market and capitalizing on untapped opportunities

(1)Total addressable market for TIM Enterprise. Source: Assintel, Assinform, TIM Data

In continuity with the past, we will double down on our strategic priorities to boost growth

Sustainable growth	Operating model evolution	Key assets optimization
Topline acceleration by further expansion into the ICT market	Shift from "buy" to "make", insourcing external capabilities	More efficient operations
▪ Increase penetration of ICT solutions (~30% of clients have only E2E offering) ▪ Leverage 5G to develop and strengthen mission-critical communication and infrastructure monitoring ▪ Strengthen agreements with PA (acceleration of NSH (1) for national PA digitalization)	▪ Hirings and capability-building at scale in the tech field ▪ Strategic partnership to accelerate professional services growth in high-potential markets and enrich the product portfolio increasing the available solutions ▪ M&As to strengthen proposition in the emerging tech area and expand the professional services business	▪ Strengthening its position as the leading infrastructure provider in the local market through the optimization of Data Center estate ▪ Leveraging AI and GenAI to optimize caring costs and consolidate leading position on Smart City and digitization of cultural heritage

Ambition to consolidate the ICT leadership in the country

Organic figures

(1) National Strategic Hub (2) Average contract duration equal to 42 months in '23 vs. '21 months in '22

Technology & Network Strategy

Leonardo Capdeville – Chief Technology & Innovation Officer

Maintaining distinctive technology assets post delayering

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Leveraging unique network-related resources to offer distinctive services to its clients

Mobile network	Transport Network	People
Broader 5G+ spectrum for enhanced connectivity	Greatest nation-wide transport network	Highly skilled workforce
100 MHz C-Band vs. competitors' <80 MHz	27 ExaByte in 2023 and 70% mobile sites covered by fiber (will be ~85% after NRRP)	Strong TLC-ICT skills
CDN Platform	ICT Lab	Cloud
High quality Video Live CDN platform for content distribution	Wide network of ICT labs for innovation	Extensive cloud infrastructure
Present in 30 cities with the most advanced technology (Multicast ABR) ensuring differentiated quality and optimizing network usage	Connected to the EU and national research ecosystem to develop, test and adopt new solutions (>2.7k patents in portfolio)	Enabler of flexibility and scalability

Established agreements with NetCo for the use of fixed network

(1) Minimum guarantees in terms of fees or volumes not contemplated. TIM only grants the acquisition of a minimum quantity of certain engineering services; however, based on the Business Plan such minimum quantity is sustainable and consistent or below TIM business plan

Ecosystem of distinctive Tech Services addressing different customer segments needs

Consumer Enterprise Public Administration

Content	▪ Wide range of movies, TV series, Football and Sport in just one subscription ▪ Platform working both with a set-of-box and with a boxless set-up
Cloud	▪ Offers fast, agile, and scalable solutions along the entire cloud chain ▪ Provides products, services and tailored made solutions in a secure cloud space
IoT and automation	▪ Offers expertise in IoT, AI and Big Data, with a focus on Smart City and Smart Industry verticals ▪ Drives business through digital innovation, leveraging on 5G technology
Cyber	▪ Combines Intelligence services, Managed Security Services and Cyber Professional Services ▪ Enhances national defense and business security protecting sensitive data and communications
Digital trust services	▪ Focuses on identity and digital validation solutions ▪ Ensures compliance with EU regulations for data/ document lifecycle management

Ambition to leveraging on 5G deployment in 2024-'26

Improving quality and customer experience	Higher service quality for both 5G and 4G customers through reduced load on the network	18pp increase % of success in quality tests
Increasing 2 efficiency in CAPEX allocation	5G spectrum efficiency allows to offer better services at a lower cost in respect to 4G infrastructure	Cost per GB 4G 5G ~40-50%
Enabling 5G traffic	Ubiquitous high-capacity and low-latency indispensable for individual and business to benefit from the use of emerging technologies	95% Pop. coverage (outdoor) 5G device penetration 73% 61% 48% 36% 2023 '24 '25 '26

Significant deployment of network layers within plan horizon:

• Investing on both 4G and 5G in '24 to improve mobile network quality
• Focusing investments on 5G in '25-'26, deploying 4G only to respect contractual obligations

Already using TIM unique assets for relevant projects

Public safety services by TIM: paving the way for a secure future

TIM Vision and CDN+ services by TIM- catalyst for evolution

Strategic Partnerships

• The cornerstone of TIM Vision unique identity, offering customers a centralized access point for Italy's top video services
• Notable collaborations include Amazon for football Champions League, DAZN for Serie A TIM, and a partnership with Netflix and Disney+

Network Infrastructure Highlights

▪ TIM CDN has a capillary distribution to be closer to the customer, for superior customer experience and robust content security with tokenization and watermarking, for video services

This is just the beginning of a new era in TIM

Transformation & Cost Efficiency

Alessandra Michelini – Head of Transformation

2022-'23 targets achieved, launching 2nd wave of Transformation in 2024-'26

New wave with additional impact of €~400m by '26, EBITDA AL – CAPEX margin to increase ~5pp

Objective of Transformation program

Goal is to mitigate total cash cost increase due to the revenue mix shift

Transformation Pillars

Streamline the cost

baseline by simplifying and right-sizing the cost structures, with a clearer full cost accountability

Operating model review

by evolving TIM digital capabilities, processes and operating model

Transformation will continue to deliver and steer the 1st wave and is already working on a new pipeline of initiatives

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2 nd wave of Transformation will focus on six "big bets" to transform the operating model

TIM Brasil

Alberto Griselli – CEO TIM Brasil

TIM Brasil

Capital Market Day 2024

Improvement of macroeconomic conditions supports industry growth

Capital Market Day 2024 TIM Brasil

TIM Brasil is enjoying the new environment, over-delivering the promises made to the market and outperforming LatAm peers

Capital Market Day 2024

TIM Brasil

Crafting the next generation TIM with a well-defined strategy

PEOPLE, SOCIETY AND ENVIRONMENT

We develop our business, driven by People, Society and Environment

Capital Market Day 2024

Brazilian mobile market is healthier than ever before supporting a more for more strategy

TIM Brasil

Market rationality with valued-based competition

Valued-based competition increasingly more relevant

New market

than volume-based

One of the few large markets with 5 to 3

consolidation

dynamics

Quality perception is the # 1 attribute (1) used to choose a mobile operator

Service essentiality

High penetration with enrooted impact in daily lives

of internet users access it via a 97% mobile device

Usage opportunity

Low data usage compared to other countries

GB/month per connection, 2023 (3)

Price affordability

Local cost of 1GB mobile data vs. 1 Big Mac (2022)

Percentage of 1GB of mobile data per 1 Big Mac in local currency (4,5)

Uniquely positioned to become the most preferred operator

The best value proposition in a value driven market

Improving clients Digital Interactions (1) YoY in 2023

+8.1pp Best in class in all resolution rankings

(PROCON-SP, Reclame Aqui and Anatel) (2)

+43%

Improvement of Human Interaction NPS in Call Center YoY in Q4 '23

Best Network from structural gap to competitive advantage

1 st Operator to cover all 5,570 cities in Brazil with 4G

The MOST awarded(3) network:

1. Network Consistency Quality Index (ECQ) 2. 1 st place in 7 of the 13 items evaluated

The BEST 5G Coverage

1 in 5G(4): 7.8k sites in 209 cities covered (Dec. '23)

Best Offer innovative

offerings and partnerships

First and only operator in Brazil to embed Apple One on its plans

st in LatAm to launch a trial offer, encouraging the usage of the best 5G

1

network

Offering health services through "Cartão de Todos" partnership

(1) Includes interactions in app and bot (2) Sources: Procon-SP (Click here), Reclame Aqui (Click here) and Anatel (Click here) (3) Sources: Teletime (Click here) and Tudocelular (Click here) (4) Source: Teleco 2023 (Click here)

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Capital Market Day 2024

TIM Brasil

Brazil's infrastructure gap offers a compelling business opportunity

of the territory with <20%

network coverage (1)

of population covered (1) >90%

Our B2B strategy focuses on IoT, while upholding traditional services

Shaping a new B2B market, leveraging our pioneer stance

enabling the next wave of productivity for key industries

IoT Connectivity Solutions (HW, SW and services)

Examples of mapped use-cases

1. IoT Connectivity Mobile Coverage Private Network On-going

2A. IoT Solutions beyond Connectivity

Smart lighting

Precision agriculture Starting Herd

management

2B. IoT Solutions beyond Connectivity (5G based)

Autonomous Operations Under Construction

Video surveillance & Analytics

Capital Market Day 2024

Our expansion is being fueled by the significant market growth potential to be unlocked across key verticals

TIM Brasil

Logistics

Utilities

B2B contracted

16.6m ha Our achievements Market potential to explore

Agribusiness Current planted area with TIM connectivity

>4.7k km

Roads under concession with TIM connectivity

Installed smart light poles from TIM 150K

350m ha

Total planted and farming area (1)

55k km

Highways being auctioned for mandatory connectivity in a total of 1.7m km of roads

15m

poles in PPP(2) for street lighting until 2026

revenues ~R\$ 425m Accumulated over the last 2 years

As pioneers, we have compelling reasons to persist in this direction, molding this emerging market

…generating growth with incremental OpFCF margin and positive social impact to the countryside of Brazil

Projects' social impacts: Coverage of 349 public schools, 101 health units, 1.3m rural residents

Capital Market Day 2024 TIM Brasil

There is a noteworthy potential for broadband expansion, with TIM having the best value proposition

Market opportunity Best value proposition

~2% share (1) of ~R\$ 40bn market

~2% share (2) of ~47m clients' market

TIM Brasil has ROOM to accelerate growth if the conditions are right

Best offer with the highest speed and best streaming content

Best service with NPS leadership (4) and #1 in OpenSignal consistent quality index

Distinct positioning driving to the highest ARPU (5)

TIM Brasil is READY to accelerate at the right moment

Capital Market Day 2024

Broadband market still fragmented and competitive with convergence never becoming a killer application

TIM Brasil

Fragmented market with 8k formal regional players

Incentives for regional players results in over 26 different market share leaders in Brazilian area codes…(1)

…triggering strong pressure on price per Mbps and driving a declining trend for FTTH ARPU (2)

Broadband market share:

Non-integrated players: 63%

Integrated players: 37%

Convergence helps churn, but so does content add-ons

Capital Market Day 2024

leadership is helping to finance our best value proposition to clients and drive value to shareholders

A strong cash generation, reinforcing our financial health and cost control, enabling higher returns to shareholders and paving the way for new possibilities

Another step in the continuous evolution of our shareholders remuneration (1) leading to a distribution of ~R\$ 12bn (2) in the next 3 years

(1) Includes IoC, dividends, shares buyback or other applicable instruments . This guidance is subject to the performance of the business and the deliberation of the Board of Directors (2) All figures refer to TIM S.A.

Setting a new shareholder remuneration floor

Remuneration announced (2) per year (R\$ bn) ~12.0 0.3 0.9 1.0 1.1 1.0 2.0 2.9 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 (1) (1) (1)

Capital Market Day 2024 TIM Brasil

Driving new possibilities - Updated plan (2024-'26)

GOALS	SHORT-TERM TARGETS (4) (2024)	MID-TERM TARGETS (4) (Until 2026)
Revenue (1)	Service revenue growth: 5% - 7% YoY	Service revenue growth (CAGR '23-'26): 5% - 6%	Accelerating growth pace as market conditions improve and best value proposition is recognized
EBITDA(1)	EBITDA growth: 7% - 9% YoY	EBITDA growth (CAGR '23- '26): 6% - 8%	Solid growth pace confirmed with positive margin contribution
Investments (2) (CAPEX)	Nominal CAPEX: R\$ 4.4bn – 4.6bn	Nominal CAPEX: R\$ 4.4bn – 4.6bn (per year)	Stable CAPEX maintained with a clear path of infrastructure development
Operating Free (1) Cash Flow	EBITDA-AL minus CAPEX growth: Double-digit YoY	EBITDA-AL minus CAPEX growth (CAGR '23-'26): Double-digit	Fast growth pace confirmed with relevant margin expansion
Shareholders (3) Remuneration	R\$ 11.8bn –	Remuneration sum (2024-'26): 12.2bn	Continuous evolution of cash distribution to investors confirmed

(1) Normalized Figures (2) CAPEX excludes 3rd license renewal and new auctions (3) Includes IoC, dividends, shares buyback or other applicable instruments (4) All figures refer to TIM S.A; This guidance is subject to the performance of the businesses and the deliberation of the Board of Directors

ESG

Enrica Danese – Head of Corporate Communication & Sustainability

A powerful «ESG engine» to ensure significant progress

From sustainability reporting to ESG project

• Long term targets aligned to best practices on E and S
• A simpler ESG report to give the vision, to show projects

• Validation of GHG emissions reduction targets by the SBTi (1)

• KPIs for every projects

• ESG at the core of the business (ESG platform)
• Enforcement of opportunities and risks mapping
• ESG massive training

• Certification for Gender Equality (UNI/pdr 125) and GEI Bloomberg Brazil

• Accountability on ESG investments

• Frequent meetings with investors
• CSRD implementation (2)
• Further engagement

Our actions have material impacts

TIM Group

Capital Market Day 2024

2024-'26 targets

(1) modem sellout

	KPIs	Targets	Timing
E	Renewable energy	100%	2025
	Emissions from operational and energy (Scope 1 and 2)	Carbon Neutrality	2030
Climate	Emissions from the value chain (Scope 3)	-42%	2030
strategy	Total emissions (Scope 1, 2, 3)	Net zero	2040
	TIM brand products with carbon footprint (1)	100%	2026
	Eco-efficiency in data traffic (bit/Joule)	+110%	2025
S	Gender gap: women managers in leadership position	≥33%	2026
Social	Cloud, IOT & Security services Revenues	+19% CAGR '24-'26	2026
strategy	Digital Identity services	+30% CAGR '23-'25	2025
	Black people in leadership positions	≥25%	2025

Highlights

• Targets essentially confirmed in order to carry out our challenging roadmap

• of targets reduced just to be focalized on TIM (from 12 to 8)

• Scope 3 redefined to be aligned with new perimeter

Main drivers

• Dismissions + new technologies driven by transformation
• Service innovation designed by ESG vision
• Energy management
• Renewable energy self-production in Brazil
• Supply chain controlled by ESG KPIs
• Extended actions on gender gap
• Strengthened internal engagement on ESG

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TIM Group Capital Market Day 2024

Our vision shapes our positioning

• Cultural evolution towards a more diverse and inclusive society
• Tackling racism, violence, harassment and bullying
• Increase women employability
• Accelerate women career development
• Family programs to balance male and female effort

Execution Plan, New Reporting, Financial Policy

Adrian Calaza – CFO

NetCo disposal - Solid capital structure thanks to unprecedent deleverage from transaction

60 (1) Up to € 2.5bn Earn-Out within 30 months from closing subject to Open Fiber transaction and regulatory relief on prices (2) Including FiberCop minorities (€4.1bn), debt-like items and benefit of Liability Management Exercise (3) Subject to customary closing adjustments (4) Adjusted Net Debt / Organic EBITDA AL (5) Peers: A1, BT, Elisa, Orange, KPN, Swisscom, Telenor, Telia, T-Mobile, Vodafone

NetCo disposal - Closing expected by summer

DISCLOSURE TIMELINE

TIM perimeter as of today

Disclaimer The 2024-'26 plan is based on the following assumptions: ▪ Figures are based on "pro-forma" estimate of revenues, OPEX and CAPEX division between TIM and NetCo components, considering the current understanding of perimeter division ▪ Relationship between TIM and NetCo (as MSA Agreement), based on the status of the understanding as of today: – Simulates the effect as the transactions occurred in Jan. 2023 (to guarantee a "like-for-like" comparison YoY) ▪ Temporary relationship between TIM and NetCo (as per TSA Agreement) are not considered in the plan figures ▪ Relationship between TIM Consumer and TIM Enterprise should be considered as preliminary (1) ▪ TI Sparkle is currently considered into TIM Domestic perimeter

Reconciling old vs. new Group figures – FY '23 preliminary pro-forma figures

Unaudited figures, organic, € bn (1)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ avg. exchange-rate 5.40 R\$/€. Proforma figures based on 2024 MSA prices. Figures may not sum up due to rounding errors (2) Revenues columns consider the impact of MSA (NetCo vs. TIM Domestic and TIM Domestic vs. NetCo), while EBITDA column presents accounting differences in MSA (3) Net of intercompany (€ 0.4bn TIM Consumer-TIM Enterprise, € 0.2bn Sparkle)

Working Capital dynamics impacted by extraordinary items

Guidance 2024-'26

Organic data (1), € bn, including Sparkle (2)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ avg. exchange-rate 5.40 R\$/€ (2) Sparkle financials: Revenues net of intercompany ~€ 0.8bn in '23, ~€ 0.9bn in '24 and '26; EBITDA AL ~€ 0.1bn in '23, ~€ 0.2bn in '24 and '26; CAPEX ~€ 0.1bn in '23 and '24, ~€ 0.2bn in '26 (3) Preliminary unaudited figures (4) Leverage at FY '23 based on old Group view (5) Computed as Group Net Debt AL less expected deleverage from NetCo disposal, divided by Group Adj. Organic EBITDA AL less NetCo EBITDA AL

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Full financial flexibility – Solid balance sheet with flexibility to navigate unexpected complexities and for potential shareholder remuneration

Capital allocation priorities and leverage in context

(1) Includes Tax, Interest and Working Capital needs (2) Computed as Group Net Debt AL less expected deleverage from NetCo disposal, divided by Group Adj. Organic EBITDA AL less NetCo EBITDA AL; excluding shareholder remuneration (3) Best-in-class peers include: A1, BT, Elisa, Orange, KPN, Swisscom, Telenor, Telia, T Mobile, Vodafone

Closing Remarks

Pietro Labriola – CEO

• ⁰¹ 'Free to run', with an unprecedented opportunity to unlock value for all stakeholders
• ⁰² Fit to win, with regulatory relief, the most distinctive digital and telco infrastructure in Italy and Brazil and a focused strategy for each Entity to capture market opportunities
• ⁰³ Strong focus on cash flow generation, expected positive EFCF AL both in Italy and Brazil in the plan horizon
• ⁰⁴ Financial flexibility, with 1.6-1.7x 2026 target leverage, not reflecting any positive impacts of potential Sparkle disposal and Earn-outs
• ⁰⁵ Opportunity to return to shareholder remuneration

Further questions

please contact the IR team

(+39) 06 3688 2500

Investor\_relations@telecomitalia.it

Disclaimer

This presentation contains statements that constitute forward-looking statements regarding the intent, belief or current expectations of future growth in the different business lines and the global business, financial results and other aspects of the activities and situation relating to the TIM Group. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected or implied in the forward-looking statements as a result of various factors. Consequently, TIM makes no representation, whether expressed or implied, as to the conformity of the actual results with those projected in the forward-looking statements. Forward looking information is based on certain key assumptions which we believe to be reasonable as of the date hereof, but forward-looking information by its nature involves risks and uncertainties, which are outside our control, and could significantly affect expected results.

The financial results of the TIM Group are prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the EU (designated as "IFRS").

The accounting policies and consolidation principles adopted in the preparation of the financial results for FY '23, Q4 '23 and for 2024-'26 Plan of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2022, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January, 2023.

Please note that as of today, the audit work by our independent auditors (E&Y) on the FY '23 results have not yet been completed.

Alternative Performance Measures

The TIM Group, in addition to the conventional financial performance measures established by IFRS, uses certain alternative performance measures for the purposes of enabling a better understanding of the performance of operations and the financial position of the TIM Group. In particular, such alternative performance measures include: EBITDA, EBIT, Organic change and impact of non-recurring items on revenue, EBITDA and EBIT; EBITDA margin and EBIT margin; net financial debt (carrying and adjusted amount), Equity Free Cash Flow, Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licences). Moreover, following the adoption of IFRS 16, the TIM Group uses the following additional alternative performance indicators: EBITDA After Lease ("EBITDA-AL"), Adjusted Net Financial Debt After Lease and Equity Free Cash Flow After Lease.

Such alternative performance measures are unaudited.