Telecom Italia Rsp

Investor Presentation • Nov 8, 2023

TELECOM ITALIA INVESTOR RELATIONS Investor\_relations@telecomitalia.it www.gruppotim.it

Index

Key Financials P&L Group Cash Flow & Net Debt Balance Sheet -Assets Balance Sheet -Liabilities DomesticResults DomesticWireline DomesticMobile TIM BrasilResults Reported& Organic Working Capital

Disclaimer

The Q3 '23 and 9M '23 financial and operating data have been extracted or derived, with the exception of some data, from the Financial Information at 30 September 2023 of the TIM Group. The financial results of the TIM Group for Q3 '23 and 9M '23 has been prepared in compliance with the accounting standards, the recognition and measurement criteria and the consolidation methods and criteria adopted for the preparation of the Consolidated Financial Statements at December 31, 2022, to which reference can be made for a more extensive description, except for the amendments to the standards issued by IASB and adopted starting from 1 January 2023.

The financial results for Q3 '23 and 9M '23 of the TIM Group are unaudited.

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 nonrecurring 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.

TIM Group Key Financials BACK TO INDEX

€m, IFRS 16 & After Lease view

TIM Group Profit & Loss

€m, IFRS 16

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23
REVENUES	15,316	3,644	7,557	11,529	15,788	3,847	7,846	11,953
Other Income	272	37	78	127	213	37	109	145
TOTAL OPERATING REVENUES AND OTHER INCOME	15,588	3,681	7,635	11,656	16,001	3,884	7,955	12,098
Acquisition of goods and services	(6,550)	(1,620)	(3,385)	(5,195)	(7,239)	(1,756)	(3,579)	(5,410)
Employee benefits expenses	(2,941)	(731)	(1,554)	(2,436)	(3,180)	(1,089)	(1,711)	(2,291)
Other operating expenses	(1,502)	(168)	(342)	(525)	(816)	(181)	(338)	(638)
Internally generated assets and Others	485	154	304	445	581	181	343	458
EBITDA (1)	5,080	1,316	2,658	3,945	5,347	1,039	2,670	4,217
EBITDA Margin	33.2%	36.1%	35.2%	34.2%	33.9%	27.0%	34.0%	35.3%
Depreciation and amortization	(4,490)	(1,107)	(2,295)	(3,540)	(4,777)	(1,201)	(2,429)	(3,643)
Gains (losses) on disposals of non-current assets	1	-	34	33	36	-	(2)	(3)
Impairment reversals (losses) on non-current assets	(4,120)	-	-	-	-	-	-	(3)
EBIT	(3,529)	209	397	438	606	(162)	239	568
EBIT Margin	-23.0%	5.7%	5.3%	3.8%	3.8%	-4.2%	3.0%	4.8%
Income (loss) equity invest. valued equity method	164	16	31	203	229	(4)	(12)	(30)
Net Financial Income / (Expenses)	(1,150)	(317)	(686)	(1,075)	(1,423)	(371)	(757)	(1,232)
Profit (loss) before tax from continuing operations	(4,515)	(92)	(258)	(434)	(588)	(537)	(530)	(694)
Income tax expense	(3,885)	(50)	(102)	(2,109)	(2,066)	(85)	(143)	(206)
Profit (loss) from continuing operations	(8,400)	(142)	(360)	(2,543)	(2,654)	(622)	(673)	(900)
Discontinued operations/Non-current assets held for sale	-	-	-	-	-	-	-	-
PROFIT (LOSS)	(8,400)	(142)	(360)	(2,543)	(2,654)	(622)	(673)	(900)
Parent Company	(8,652)	(204)	(483)	(2,728)	(2,925)	(689)	(813)	(1,124)
Minorities	252	62	123	185	271	67	140	224
Non-Recurring Items (2)	8,653	53	289	2,371	2,437	427	438	598
PROFIT (LOSS) NET NON-RECURRING ITEMS	253	(89)	(71)	(172)	(217)	(195)	(235)	(302)

(1) Non-recurring items € 570m in 9M '23 (€ 2,371m in 9M '22), o/w €594m related to personnel costs (€ 548m in 9M '22) (2) 9M '23 Non-Recurring Items include provisions for personnel (2021-26 layoffs ex art.4 Fornero Law), claims and litigation

TIM Group Cash Flow & Net Debt

€m, IFRS 16 & After Lease view

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23
EBITDA	5,080	1,316	2,658	3,945	5,347	1,039	2,670	4,217
CAPEX	(4,630)	(932)	(1,906)	(2,762)	(4,077)	(837)	(1,729)	(2,645)
o/w spectrum	(804)	-	(89)	(98)	(98)	-	-	-
CHANGE IN WORKING CAPITAL	994	(80)	(399)	(2,311)	(1,895)	96	(179)	(449)
Change in net operating working capital	733	(91)	(261)	(2,389)	(1,736)	(157)	(262)	(515)
Change in inventories	(39)	(20)	(37)	(55)	(35)	(41)	(53)	(50)
Change in trade receivables	257	222	77	32	(81)	164	126	13
Change in trade payables	1,008	(497)	(753)	(866)	(8)	(722)	(512)	(730)
Other changes in operating receivables/payables	(493)	204	452	(1,500)	(1,612)	442	177	252
Change in provisions for employee benefits	(83)	38	241	474	156	243	235	108
Change in operating provisions and other changes	344	(27)	(379)	(396)	(315)	10	(152)	(42)
OPERATING FREE CASH FLOW Reported	1,444	304	353	(1,128)	(625)	298	762	1,123
Licence	(435)	(186)	(469)	(2,217)	(2,242)	-	(24)	(24)
OPERATING FREE CASH FLOW net of Licence	1,879	490	822	1,089	1,617	298	786	1,147
Financial Expenses	(1,053)	(308)	(660)	(1,028)	(1,389)	(359)	(791)	(1,257)
Cash Taxes & Other	(194)	119	176	200	396	(56)	(162)	(128)
o/w Substitute Tax	(231)	-	-	-	231	-	-	-
Net Cash Flow from discontinued operations	-	-	-	-	-	-	-	-
EQUITY FREE CASH FLOW	632	301	338	261	624	(117)	(167)	(238)
Dividends and change in Equity	(410)	(26)	(30)	(44)	(66)	(38)	(86)	(164)
Disposal and Financial investments (1)	1,804	(11)	(1,771)	(589)	(666)	(5)	(57)	(74)
Licence	(435)	(186)	(469)	(2,217)	(2,242)	-	(24)	(24)
IFRS & IAS	(452)	(530)	(535)	(728)	(827)	(296)	(465)	(474)
NET CASH FLOW	1,139	(452)	(2,467)	(3,317)	(3,177)	(456)	(799)	(974)
EQUITY FREE CASH FLOW	632	301	338	261	624	(117)	(167)	(238)
Lease Impact	(570)	(178)	(322)	(496)	(650)	(280)	(466)	(669)
EQUITY FREE CASH FLOW AFTER LEASE	6 2	123	16	(235)	(26)	(397)	(633)	(907)
NET DEBT	22,187	22,639	24,654	25,504	25,364	25,820	26,163	26,338
Lease Impact	(4,614)	(4,966)	(5,385)	(5,404)	(5,349)	(5,365)	(5,348)	(5,154)
NET DEBT After Lease	17,573	17,673	19,269	20,100	20,015	20,455	20,815	21,184

(1) FY '22 figure including Daphne 3 disposal (+€ 1,184m), OI acquisition (-€ 1,874m) and other M&A (+€ 24m); KKR transaction (+€ 1,759m), other disposal (+€ 172m) and financial investments (-€ 127m) in FY '21

Working Capital

	TIM Group (1)				Domestic		Brasil
	9M '22	9M '23	Δ abs	9M '22	9M '23	Δ abs	9M '22	9M '23	Δ abs
Operating WC & Other	(2,311)	(449)	1,862	(2,062)	(354)	1,708	(251)	(94)	157
License License paid in the year Non recurring items (not paid)	(13) 2,132 (594)	- 24 (570)	13 (2,108) 24	(13) 1,738 (574)	- - (562)	13 (1,738) 12	- 394 (17)	- 24 (8)	- (370) 9
Recurring Operating WC	(786)	(995)	(209)	(911)	(916)	(5)	126	(78)	(204)
Inventory Trade Receivables Trade Payables Other Operating Payables/Receivables & Funds - o/w Litigations & Settlements - o/w Payables vs. Personnel - o/w Personnel Exit (Fornero Law) - o/w VAT - o/w Billing (2) - o/w Net Debts vs INPS - o/w Deferred Costs & Revenues -o/w Payment in Advance vs Suppliers/Customers				(42) 30 (473) (426) (472) 80 (330) 395 1 (59) (50) 54	(17) 41 (636) (304) (188) 16 (316) 352 (79) (31) (13) (2)	25 11 (163) 122 284 (64) 14 (43) (80) 28 37 (56)

TIM Group Balance Sheet

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23
CURRENT ASSETS	14,070	10,272	11,878	10,708	10,232	9,458	9,563	10,475
Trade and miscellaneous receivables and other current assets	4,358	4,420	4,481	4,527	4,539	4,496	4,676	4,642
Cash and cash equivalents	6,904	3,272	2,391	3,519	3,555	2,660	2,385	3,291
Discontinued operations/assets held for sale	-	-	2,631	20	-	-	-	1
o/w of a financial nature	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	-	2,631	20	-	-	-	1
Securities other than investments, other financial receivables and other current financial assets	2,391	2,122	1,883	1,907	1,600	1,679	1,897	1,822
Inventories	282	309	324	344	322	363	377	364
Current income tax receivables	79	88	114	336	147	145	134	201
Current financial receivables arising from lease contracts	56	61	54	55	69	115	94	154
Other investments	-	-			-	-
NON-CURRENT ASSETS	55,117	56,023	54,691	52,399	51,795	51,823	51,766	51,092
Intangible assets	25,715	26,063	26,908	26,929	26,767	26,665	26,680	26,429
Goodwill	18,568	18,657	19,009	19,082	19,111	19,118	19,202	19,188
Intangible assets with a finite useful life	7,147	7,406	7,899	7,847	7,656	7,547	7,478	7,241
Tangible assets	13,311	13,692	13,971	14,022	14,100	14,094	14,292	14,348
Property, plant and equipment owned	13,311	13,692	13,971	14,022	14,100	14,094	14,292	14,348
Right of Use assets	4,847	5,177	5,554	5,517	5,488	5,545	5,528	5,355
Other assets	11,244	11,091	8,258	5,931	5,440	5,519	5,266	4,960
Miscellaneous receivables and other non-current assets	2,266	2,353	2,343	2,356	2,365	2,395	2,467	2,302
Non-current financial assets	2,330	2,089	2,011	2,140	1,651	1,697	1,300	1,172
o/w receivable for lease contracts	45	50	50	49	49	48	141	113
o/w other non-current financial assets	2,285	2,039	1,961	2,091	1,602	1,649	1,159	1,059
Deferred tax assets	3,513	3,470	3,441	772	769	779	782	790
Other investments	156	134	128	105	116	111	152	150
Investments in associates and joint ventures accounted for using the equity method	2,979	3,045	335	558	539	537	565	546
TOTAL ASSETS	69,187	66,295	66,569	63,107	62,027	61,281	61,329	61,567

TIM Group Balance Sheet

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23
CURRENT LIABILITIES	16,364	13,739	14,200	13,214	14,142	14,069	16,542	14,862
Trade and miscellaneous payables and other current liabilities	9,473	9,655	9,410	7,591	8,199	8,019	8,158	7,894
Current financial liabilities	6,596	3,811	4,550	5,614	5,909	6,007	8,370	6,943
o/w liabilities for financing contracts and others	5,945	3,128	3,768	4,808	5,039	5,163	7,497	6,096
o/w liabilities for lease contracts	651	683	782	806	870	844	873	847
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	-	1	-	-	-	-	1
o/w of a financial nature	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	-	1	-	-	-	-	1
Current income tax payables	295	273	239	9	34	43	14	24
NON-CURRENT LIABILITIES	30,784	29,821	29,844	30,742	29,160	29,043	26,523	28,903
Non-current financial liabilities	27,501	26,579	26,469	27,506	26,336	25,861	23,516	25,967
o/w liabilities for financing contracts and others	23,437	22,185	21,762	22,804	21,739	21,177	18,806	21,393
o/w liabilities for lease contracts	4,064	4,394	4,707	4,702	4,597	4,684	4,710	4,574
Miscellaneous payables and other non-current liabilities	1,413	1,366	1,322	1,017	1,146	1,103	1,031	1,061
Employee benefits	699	700	812	972	684	965	943	843
Provisions	926	956	1,007	1,010	910	942	844	840
Deferred tax liabilities	245	220	234	237	84	172	189	192
TOTAL LIABILITIES	47,148	43,560	44,044	43,956	43,302	43,112	43,065	43,765
EQUITY	22,039	22,735	22,525	19,151	18,725	18,169	18,264	17,802
Equity attributable to equity owners of the Parent	17,414	17,786	17,590	15,461	15,061	14,463	14,428	13,992
Equity attributable to Minority Interests	4,625	4,949	4,935	3,690	3,664	3,706	3,836	3,810
TOTAL LIABILITIES & EQUITY	69,187	66,295	66,569	63,107	62,027	61,281	61,329	61,567

Domestic Results

€m, IFRS 16 & After Lease view

	REPORTED						ORGANIC (1)
	Q3 '22	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q3 '22 comparable base	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Change YoY %
REVENUES	2,919	3,185	11,858	2,843	2,924	2,978	2,915	3,185	11,858	2,843	2,924	2,978	2.2
Service Revenues	2,694	2,822	10,799	2,551	2,644	2,675	2,690	2,822	10,799	2,551	2,644	2,675	(0.6)
Wireline Services	2,020 1,287	2,180 1,429	8,276 5,332	1,986 1,253	2,059 1,285	2,028 1,275	2,016 1,287	2,180 1,429	8,276 5,332	1,986 1,253	2,059 1,285	2,028 1,275	0.6 (1.0)
Retail National Wholesale + FiberCop	494	490	1,969	498	517	505	494	490	1,969	498	517	505	2.4
International Wholesale Other	238 1	260 1	969 6	226 9	248 9	242 6	234 1	260 1	969 6	226 9	248 9	242 6	3.4
Mobile Services	802 645	779 649	3,060 2,577	701 610	719 615	781 630	802 645	779 649	3,060 2,577	701 610	719 615	781 630	(2.6) (2.2)
Retail Wholesale and Other	158	130	483	91	104	151	158	130	483	91	104	151	(4.3)
Elimination & Other	(128)	(137)	(537)	(136)	(134)	(134)	(128)	(137)	(537)	(136)	(134)	(134)
Handsets	225	363	1,059	292	280	303	225	363	1,059	292	280	303	34.7
OPEX	2,132	2,307	8,339	2,261	1,824	1,992	1,831	2,226	7,684	1,843	1,817	1,855	1.3
EBITDA	787	878	3,519	582	1,100	986	1,084	959	4,174	1,000	1,107	1,123	3.6
EBITDA Margin	27.0%	27.6%	29.7%	20.5%	37.6%	33.1%	37.2%	30.1%	35.2%	35.2%	37.9%	37.7%	0.5 p.p.
EBITDA After Lease	660	747	3,007	454	966	853	957	828	3,662	872	973	990	3.4
EBITDA AL Margin	22.6%	23.5%	25.4%	16.0%	33.0%	28.6%	32.8%	26.0%	30.9%	30.7%	33.3%	33.2%	0.4 p.p.
CAPEX net of licences	670	1,059	3,207	606	719	728	660	1,059	3,127	606	719	728	10.3
% on revenues	23.0%	33.2%	27.0%	21.3%	24.6%	24.4%	22.6%	33.2%	26.4%	21.3%	24.6%	24.4%	1.8 p.p.
Headcount EoP	42,578	40,984	40,984	40,906	40,903	39,186

Domestic Wireline

€m, IFRS 16

	REPORTED						ORGANIC (1)
	Q3 '22	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q3 '22 comparable base	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Change YoY %
WIRELINE REVENUES	2,132	2,389	8,821	2,169	2,251	2,242	2,128	2,389	8,821	2,169	2,251	2,242	5.4
Wireline Service Revenues	2,020	2,180	8,276	1,986	2,059	2,028	2,016	2,180	8,276	1,986	2,059	2,028	0.6
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale	1,287 500 368 494 238	1,429 491 520 490 260	5,332 2,023 1,593 1,969 969	1,253 482 373 498 226	1,285 494 396 517 248	1,275 499 383 505 242	1,287 500 368 494 234	1,429 491 520 490 260	5,332 2,023 1,593 1,969 969	1,253 482 373 498 226	1,285 494 396 517 248	1,275 499 383 505 242	(1.0) (0.1) 4.2 2.4 3.4
Other	1	1	6	9	9	6	1	1	6	9	9	6
Equipments	112	209	545	183	192	214	112	209	545	183	192	214	91.5
Retail lines ('000) Churn rate % Broadband Consumer Business (2) UBB							8,383 2.9 7,523 6,322 1,201 5,372	8,290 3.4 7,443 6,265 1,178 5,417	8,290 13.0 7,443 6,265 1,178 5,417	8,216 3.3 7,379 6,213 1,165 5,487	8,141 3.1 7,318 6,154 1,164 5,531	8,066 3.0 7,260 6,091 1,169 5,553	(3.8) 0.1 p.p. (3.5) (3.7) (2.7) 3.4
Wholesale lines ('000)							7,604	7,525	7,525	7,453	7,365	7,297	(4.0)
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB							1,897 147 413 5,147	1,821 142 392 5,171	1,821 142 392 5,171	1,744 135 367 5,206	1,666 130 347 5,222	1,603 126 327 5,241	(15.5) (14.3) (20.8) 1.8
ARPU Consumer (€/month)							28.4	28.1	28.3	27.3	28.1	28.3	(0.5)
ARPU Consumer net of activation fees (€/month)							26.8	27.2	26.8	27.0	27.9	28.1	4.8

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) Including SMB broadband lines (818k in Q3 '23)

Q3 '23 Financial and Operating Figures Investor Relations

Domestic Wireline - Legenda BACK TO INDEX

WIRELINE REVENUES	Total revenues of Domestic Wireline, including services and equipment
Wireline Service Revenues	Including retail, domestic wholesale, Sparkle (TIS Group), adjustments and eliminations
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale Other	Retail service revenues: consumer + business (including revenues generated by TIM Factories) Data services (xDSL, FTTx), TIM Vision and other contents, TIM Game Cloud, Security, IT and other B2B services. Including revenues generated by TIM Factories Revenues from OLOs, regulated and not regulated (organization view) and from FiberCop (consolidated by line from Q2) TIM Sparkle Group revenues Intercompany adjustment and elimination
Equipments	Equipment sold, including consumer (routers, set-top-box, etc) and B2B (IRU, IT hardware, local networks equipment, etc)
Retail lines ('000) Churn rate %	Fixed accesses, including both voice, broadband (xDSL, FTTx) and data only lines. Gigabit Ethernet (GBE) FTTH lines included Percentage of line lost on average nr of lines in the reported period
Broadband Consumer Business UBB	All active broadband lines, including xDSL and FTTx Active broadband lines on Consumer customers Active broadband lines on Corporate and Small/Medium enterprises All active fiber line retail customers (FTTx and enterprise data lines) and Fixed Wireless Accesses (FWA). Gigabit Ethernet (GBE) FTTH lines included
Wholesale lines ('000)	Total number of wholesale lines
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB	Nr. of wholesale accesses to the copper local access network (SULL, VULL and NGA included) Nr. of rented wholesale lines enabling OLOs to resell basic and advanced telephone and associated services Nr. of wholesale copper access lines with no RTG/ISDN/WLR voice service, used by OLOs for ADSL data service. Nr. of FTTx accesses on TIM's fiber network
ARPU Consumer	Consumer service revenues divided by average active consumer CB (€/line/month)
ARPU Consumer net of activation fees	Consumer service revenues divided by average active consumer CB, net of activation fees discontinuity (€/line/month)

Domestic Mobile

			REPORTED				ORGANIC (1)
	Q3 '22	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q3 '22 comparable base	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Change YoY %
MOBILE REVENUES	913	934	3,572	808	807	872	913	934	3,572	808	807	872	(4.5)
Mobile Service Revenues	802	779	3,060	701	719	781	802	779	3,060	701	719	781	(2.6)
Retail Services o/w Incoming Wholesale and Other	645 41 158	649 40 130	2,577 172 483	610 29 91	615 29 104	630 27 151	645 41 158	649 40 130	2,577 172 483	610 29 91	615 29 104	630 27 151	(2.2) (34.4) (4.3)
Handsets and Handsets Bundle	111	155	512	107	88	9 1	111	155	512	107	88	9 1	(17.9)

Total number of lines ('000)	30,515	30,407	30,407	30,201	30,251	30,232	(0.9)
Churn rate %	3.1	3.3	13.3	3.7	2.8	3.1	0.0 p.p.
Human	18,590	18,438	18,438	18,297	18,269	18,201	(2.1)
Not Human (M2M)	11,926	11,969	11,969	11,904	11,982	12,031	0.9
Calling lines	27,874	27,788	27,788	27,576	27,667	27,622	(0.9)
Human Calling	15,948	15,818	15,818	15,673	15,685	15,591	(2.2)
Broadband Users	12,685	12,577	12,577	12,584	12,662	12,705	0.2
LTE Users	12,230	12,247	12,247	12,273	12,371	12,428	1.6
Usage Data (GB/users/month)	14.9	14.8	13.7	15.4	16.2	17.8	19.5
ARPU Consumer - Human calling (€/month)	11.1	11.1	11.0	10.7	10.8	11.1	(0.6)
ARPU Consumer - Human calling net of MTR (€/month)	11.1	11.0	11.0	10.9	11.0	11.3	1.5

Domestic Mobile - Legenda BACK TO INDEX

MOBILE REVENUES	Total mobile revenues, including services, handsets and handsets bundle
Mobile Service Revenues	Mobile service revenues, including retail, wholesale and other
Retail Services	Retail service revenues, consumer and business including voice, messaging, browsing and content
o/w Incoming	Revenues for voice traffic terminated on TIM mobile customers including visitors
Wholesale and Other	MVNOs and visitors. Inwit revenues and colocation on mobile sites until Q1 '20
Handsets and Handsets Bundle	Mobile handsets sales and handsets bundles
Total number of lines	Total mobile customer base, human and not human ('000)
Churn rate %	Percentage of line lost on average nr of lines in the reported period
Human	Total nr. of human lines
Not Human (M2M)	Total nr. of not human lines, including machine to machine and data-only SIMs (eg. for tablets)
Calling lines	Nr. of active lines (calling at least once within the last month of the reported quarter)
Human Calling	Nr. of human active lines (calling at least once within the last month of the reported quarter)
Broadband Users	Mobile customers using data services
LTE Users	Mobile customer using (also) 4G (LTE) data services
Usage Data	Average data usage (GB/broadband users/month) - Data volumes net of Visitors, Roamers and MVNO (Noverca/Kena volumes included)
ARPU Consumer - Human calling	Consumer service revenues divided by average consumer human calling CB (€/line/month)
ARPU Consumer - Human calling net of MTR	Consumer service revenues divided by average consumer human calling CB, net of Termination Rate discontinuity (€/line/month)

Reported, R\$m, IFRS 16

										Change
	FY '21	Q1 '22	Q2 '22	Q3 '22	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	YoY %
REVENUES	18,058	4,727	5,368	5,611	5,825	21,531	5,640	5,863	6,056	7.9
Service Revenues	17,497	4,584	5,201	5,465	5,579	20,829	5,467	5,694	5,876	7.5
o/w Mobile	16,353	4,287	4,899	5,155	5,256	19,597	5,152	5,374	5,550	7.7
o/w Fixed	1,144	297	302	310	323	1,232	314	321	324	4.6
Handsets	561	143	167	146	246	702	173	169	180	23.3
OPEX	9,397	2,636	2,947	2,954	3,001	11,538	3,081	2,980	3,064	3.7
EBITDA	8,661	2,091	2,421	2,657	2,824	9,993	2,559	2,883	2,992	12.6
EBITDA margin	48.0%	44.2%	45.1%	47.4%	48.5%	46.4%	45.4%	49.2%	49.4%	2.0 p.p.
EBITDA net non recurring	8,697	2,111	2,472	2,680	2,858	10,121	2,572	2,900	3,003	12.1
EBITDA margin	48.2%	44.7%	46.1%	47.8%	49.1%	47.0%	45.6%	49.5%	49.6%	1.8 p.p.
EBITDA After Lease net non recurring	6,726	1,564	1,779	1,890	2,064	7,297	1,780	2,152	2,294	21.4
EBITDA margin	37.2%	33.1%	33.1%	33.7%	35.4%	33.9%	31.6%	36.7%	37.9%	4.2 p.p.
CAPEX	7,966	1,328	1,050	977	1,375	4,730	1,289	925	998	2.1
% on revenues	44.1%	28.1%	19.6%	17.4%	23.6%	22.0%	22.9%	15.8%	16.5%	(0.9 p.p.)
KPI's
Mobile Lines ('000) (1)	52,066	52,305	68,695	68,796	62,485	62,485	61,721	61,225	61,254	(11.0)
Market Share on total lines (2)	20.4%	20.3%	26.5%	26.4%	24.8%	24.8%	24.6%	24.4%	24.3%	(2.1 p.p.)
ARPU Mobile (R\$/month) (3)	26.4	27.4	25.8	25.0	26.6	26.1	27.7	29.2	30.2	21.1
TIM UltraFibra Lines ('000)	685	689	699	708	716	716	732	761	791	11.6
ARPU TIM UltraFibra (R\$/month)	91.0	94.3	95.8	96.9	98.7	96.4	97.8	98.3	96.0	(1.0)
Exchange rate AVG YTD (R\$/euro)	6.36	5.87	5.56	5.47	5.44	5.44	5.57	5.48	5.43

Reported & Organic Reconciliation

€m, IFRS 16 & After Lease view

	Q3 '22					Q3 '23
	Reported	Non Organic elements			Organic
		Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	3,972	-	(11)	-	3,961	4,107	-	4,107
Domestic	2,919	-	(4)	-	2,915	2,978	-	2,978
Brazil	1,061	-	(7)	-	1,054	1,138	-	1,138
Other Activities & Eliminations	(8)	-	-	-	(8)	(9)	-	(9)
SERVICE REVENUES	3,720	-	(11)	-	3,709	3,771	-	3,771
Domestic	2,694	-	(4)	-	2,690	2,675	-	2,675
Brazil	1,034	-	(7)	-	1,027	1,104	-	1,104
Other Activities & Eliminations	(8)	-	-	-	(8)	(8)	- 0	(8)
EBITDA	1,287	-	(5)	(302)	1,584	1,547	(140)	1,687
Domestic	787	-	(1)	(298)	1,084	986	(137)	1,123
Brazil	502	-	(4)	(4)	502	561	(3)	564
Other Activities & Eliminations	(2)	-	-	-	(2)	-	-	-
EBITDA After Lease	1,011	-	(5)	(302)	1,308	1,280	(140)	1,420
Domestic	660	-	(1)	(298)	957	853	(137)	990
Brazil	353	-	(4)	(4)	353	427	(3)	430
Other Activities & Eliminations	(2)	-	-	-	(2)	-	-	-

For further questions please contact the IR team