Telecom Italia Rsp

Investor Presentation • Nov 8, 2023

Q3 '23 DELIVERING & DELAYERING

09 NOVEMBER 2023

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.

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.

Please note that 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 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.

Financial and operating results #²

TIM Group

Group and Domestic results fully on track vs FY guidance

Organic data, YoY trend (1)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation. Group figures @ average exchange-rate 5.43 R\$/€ (2) LSD = Low-Single Digit MSD = Mid-Single Digit LMSD = Low-to-Mid Single Digit

Domestic growth trajectory confirmed on all metrics TIM Domestic

Organic data, YoY trend (1)

TIM Entities delivering results (1/3)

	Revenues	Services	Q3 achievements	Main KPIs
	-3.8% YoY	-3.4% YoY	Price ups delivering strong results: (1) ▪ Targeted ~50% of CO Mobile CB and ~70% of CO Fixed CB ▪ ARPU growth both in fixed and mobile ▪ Limited impact on churn so far Incremental revenues of ~€ 75m in '23 and ~€ 120m in '24(2) ▪ Consumer price ups # of lines targeted in 9M '23 (million lines)	Fixed ARPU – CO Mobile ARPU – CO net of activation fees human calling, net of MTR €/month €/month +4.8% +1.5% YoY +4.8% flat YoY 27.9 28.1 11.3 11.0 Q2 '23 Q3 Q2 '23 Q3 Churn - CO Fixed Mobile
TIM Consumer (CO+SMB)	improving path	Services trend on	Fixed Mobile 3.7 2.1 st 1 wave 2.1 1.5 1.3 0.8 0.4 0.1 Mar '23 Apr May Jun Jul Aug Sep	1.8% 1.7% 1.7% 1.6% 1.5% 1.5% 1.4% 1.3% 1.2% 1.2% 1.2% 1.2% 1.1% 1.1% Mar '23 Apr May Jun Jul Aug Sep
	∆YoY -6.4%-6.2% Q3'22 Q4	-3.4% -4.9% -5.6% Q1'23 Q2 Q3	▪ st FTTH leadership: TIM 1 in market share in the last 5 quarters	FTTH market share (3) +4.4pp -1.4pp -2.0pp -3.3pp +2.3pp ∆YoY 26% 19% 19% 18% 17% TIM Op.2 Op.3 Op.4 Others

(1) Targeted 7.3m CO mobile lines and 4.7m CO fixed lines (2) Of which ~€ 7m in '23 and ~€ 11m in '24 from SMB (price ups on 0.4m fixed lines and 0.3m mobile lines launched/announced in '23) (3) Source: AGCOM, data as of Jun. '23

Q3 '23 - Delivering & Delayering 09 November 2023 6

TIM Entities delivering results (2/3)

	Revenues	Services	Q3 achievements			Main KPIs
TIM Enterprise	+4.8% YoY	+4.2% YoY	▪ Positive revenue growth, faster pace vs. Q2 driven by fixed monthly fees and mobile services. Cloud revenues +24% YoY YTD net of SPC Cloud phase out ▪ ~€ 1.8bn worth of pipeline ▪ National Strategic Hub beyond expectations The first 10 contracts signed generate ~80% of 1st – year marketed NSH services – Total value NSH negotiations equal to € 0.4bn, of which 80% concentrated on 41 Customers			9M '23 Service Revenues Connectivity Cloud IoT Security Other IT	Δ YoY -3% +8% -3% +9% +9%	weight 42% 30% 2% 3% 23%	Revenue mix Δ YoY -2.6pp +1.3pp -0.1pp +0.2pp +1.2pp
NetCo	+5.8%	-1.1%	▪ confirmed by YE ▪ ▪	NRRP: 30% grant advance payment unlocked, € 0.7bn cash-in Service revenues trend YoY broadly stable FTTH coverage: 8.7m technical units connected (36% of tot.)		Market share 79% 15.6m accesses (1) >70% FTTx		FTTx 95%	coverage of active lines ~61% >100Mbps
	YoY	YoY	Italia 1 Giga	5G Backhauling	5G Coverage	FTTH coverage (technical units, million) (3)
			Progressive acceleration excluding Sardinia (2)	Expected to achieve YE target (2)	Expected to achieve YE target(2)	32% 7.8	33% 8.0	34% 8.3	36% 8.7
				No risk of penalties		FY '22	Q1 '23	Q2	Q3

(1) Fixed accesses including FiberCop (2) NRRP milestones for YE '23: 25% of street numbers covered with fiber ("Italia 1 Giga"), 35% of mobile sites connected ("5G Backhauling"), 10% of areas covered with 5G ("5G Coverage") (3) Overall FTTH coverage, including NRRP and "Eurosud"

Q3 '23 - Delivering & Delayering 09 November 2023 7

TIM Entities delivering results (3/3)

	Revenues	Services	Q3 achievements	Main KPIs
		+7.5%	▪ Robust revenue growth from strong operational performance:	Mobile
+7.9% YoY TIM Brasil		YoY o/w Mobile +7.7%	– MSR up YoY mainly driven by postpaid, ARPU to the highest level ever both on pre/postpaid – TIM UltraFibra keeping a strong growth pace thanks to continued CB expansion driven by FTTH migration	CB ARPU 61.2m lines (6) 30.2 R\$/month +5k net adds +21.1% YoY
			EBITDA double-digit growth (2): consistent revenues ▪ performance + M&A synergies + cost efficiencies. OPEX growth below inflation rate (3)	postpaid 27.2m lines 43.7 R\$/month +0.6m net adds +21.1% YoY
		o/w Fixed +4.6%	▪ EBITDA AL trend YoY benefitting from site decommissioning. EBITDA AL margin +4.2pp YoY to 37.9% ▪ Solid cash flow performance	prepaid
	EBITDA AL	CAPEX	▪ Significant enhancement of mobile infrastructure, already Brazil's largest and best 5G network	34.1m lines 15.0 R\$/month -0.6m net adds +17.6% YoY
	+21.4%	+2.1%		Fixed - TIM UltraFibra
	YoY (1)	YoY	Shareholder remuneration
	EBITDA AL -	CAPEX	▪ Expanding shareholder remuneration to a new level, from R\$	CB ARPU 791k lines 96.0 R\$/month +30k net adds -1.0% YoY
	21.3% on revenues +5.2pp YoY		2.0bn in '22 to R\$ >2.9bn in '23 (4) ▪ ~8% dividend yield (5)	o/w FTTH 87% on tot. +15pp YoY

(1) Net Non-Recurring Items (NRI) (2) EBITDA net of NRI +12.1% YoY (3) OPEX +3.7% YoY in Q3 '23 vs +5.2% IPCA LTM (source: IBGE, 30th Sep. 2023) (4) Subject to BoD approval and 2024 AGM ratification (5) Based on stock price as of Oct. 23th, 2023 (6) Only market lines (excluding Company lines)

TIM Domestic

Transformation plan - ~€ 0.2bn additional savings achieved, >3/4 of FY target reached

	2022	2023	2024
TARGET SAVINGS (€bn) (1)	0.3	1.1	1.5
o/w OPEX savings (2)	0.3	0.7	1.0
o/w cash cost / CAPEX extra-savings	-	0.4	0.5

~€ 0.2bn additional savings in Q3 '23 € 0.1bn OPEX savings € 0.1bn cash cost /CAPEX extra savings

77% of incremental FY target reached

	Q3 highlights	9M key contributors
Digital	▪ New digital CX, activation process based on client digital ID ▪ eSIM, enhanced activation process	Real Estate	▪ Closure of 200k sqm by leveraging 'work from home'
break-through	▪ Certified email and digitization: 58% customer paper mails shifted to digital (3) – – >1 million digital invoices in Q3	Energy	▪ Efficiencies, ~10% lower consumption
Customer care	▪ Customer Care, on track to achieve 10% cost reduction YoY thanks to lower human volumes, make vs buy and digitalization ▪ Generative Al & Voicebot, set-up of future-proof platform, go live in Q1 '24 (4)	Rightsizing & talents' uplift	▪ Hourly reduction, average impact equivalent to 4.2k FTEs ▪ Voluntary exits, ~0.4k HCs (~80% of target achieved) ▪ Early retirements, ~1.4k HCs ▪ Insourcing, ~0.6k HCs already re-skilled ▪ Hirings, ~0.4k HCs already recruited
Decommissioning update	▪ Public Payphones, on track with plan – ~7.5K already dismantled (~50% of YE target) – ~2.5K to be converted into Digital Booths	▪ – Approval	Copper legacy, on track with plan (5) received by AGCOM to shut down 1.3k COs by '25

Financial and operating results #²

TIM Domestic

OPEX – Slight YoY increase mainly attributable to revenue-driven costs, tailwinds from labour and energy

Domestic OPEX Organic data, IFRS 16, € m
	Q3 '23	YoY trend	Weight on OPEX trend
TOT. OPEX	1,855	+24 (+1.3%)
(cash view)		+11 (+0.6%)
Interconnection	280	-3%	-0.5pp ↓
Equipment	157	-13%	-1.3pp ↓
Other CoGS	275	+24%	+2.9pp ↑
Commercial	317	+9%	+1.4pp ↑
Industrial	314	-4%	-0.7pp ↓
G&A and IT	91	-8%	-0.4pp ↓
(1) Labour	406	-5%	-1.2pp ↓
Other (2)	15	n.m.	+1.1pp ↑

• Variable costs +5% YoY in Q3
  • Interconnection down YoY for lower volumes and cost rationalization
  • Equipment reduction due to lower volumes sold
  • Other CoGS increase related to ICT revenue dynamic and other goods sold
• Commercial costs +9% YoY mainly driven by higher Content & Vas (related to higher multimedia revenues) and Commissioning (only for accounting effects, down in cash terms)
• Industrial costs -4% YoY, with lower network maintenance costs. Energy costs -9% YoY due to lower energy prices and volume efficiencies despite no fiscal benefits in Q3 '23
• G&A and IT -8% YoY for lower IT costs (mainly for lower managed services revenues) and professional services
• Labour -5% YoY driven by solidarity and lower FTEs

TIM Group

Domestic CAPEX in line with plan. Net Debt increase due to negative EqFCF

Organic figures Group Domestic Brazil (1), IFRS 16 and After Lease, €m

Refinancing activity – Completed for 2023, € 4.1bn raised in 9M o/w € 2.5bn in Q3 TIM Group

(1) Includes € 0.7bn repurchase agreements (nominal amount) due in the following 9 months (2) € 24.7bn is the nominal amount of outstanding M/L term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 1.1bn) and current financial liabilities (€ 1.2bn), gross debt figure of € 27.0bn is reconciled with reported number (3) After Lease view (4) Avg. M-L term maturity 5.3y (bonds 6.3y) (5) Gross debt adjusted (6) ~28% of outstanding bonds (nominal amount) denominated in USD and GBP and fully hedged

Q3 '23 - Delivering & Delayering 09 November 2023 13

Bonds 69%

(6)

Other 2%

Financial and operating results #²

Delayering TIM

Section to be provided tomorrow, Thursday 9th November

Financial and operating results #²

Closing remarks TIM Group

• › Domestic growth trajectory confirmed, 2nd consecutive quarter of positive Revenues and EBITDA
• › Transformation Plan execution on track with FY target

Delivering

• › 9M performance + positive drivers expected in Q4 → FY GUIDANCE CONFIRMED
• › € 0.7bn partial anticipation of NRRP funds to be cashed-in by YE, refinancing activities completed for '23
• › Neutral Equity FCF in FY, including NRRP anticipation

Key financials TIM Group

Organic data (1), IFRS 16 and After Lease (AL), €m and YoY trend

	Q3 '23	YoY trend	vs. Q2 '23	vs. Q3 '22	Q3 highlights
Revenues	4,107	+3.7%	+0.9pp ↑	+2.6pp ↑
o/w Domestic	2,978	+2.2%	+1.5pp ↑	+7.5pp ↑
Service Revenues	3,771	+1.7%	-0.1pp ↓	-1.3pp ↓	Revenues and EBITDA Domestic: 2nd consecutive quarter of
o/w Domestic	2,675	-0.6%	+0.4pp ↑	+2.9pp ↑	Revenues and EBITDA growth
EBITDA	1,687	+6.5%	+0.9pp ↑	+13.0pp ↑	track towards stabilization
o/w Domestic	1,123	+3.6%	+3.1pp ↑	+19.8pp ↑	and Domestic level
EBITDA AL	1,420	+8.6%	+3.1pp ↑	+19.8pp ↑
CAPEX (2)	916	+8.5%
o/w Domestic	728	+10.3%
EFCF AL	-274	-23
Net Debt AL (3)	21,184 (+369 in Q3)

Continued growth at Group level both on Revenues and EBITDA

Domestic: 2nd consecutive quarter of Revenues and EBITDA growth

Domestic services YoY trend improved vs Q2, on track towards stabilization

Accelerated EBITDA growth YoY both at Group and Domestic level

CAPEX in line with plan. Group +72m YoY, o/w +68m Domestic driven by a push on FTTH

EFCF AL negative mainly for working capital, higher financial expenses & lower dividends from Inwit. Net Debt AL increasing 0.4bn QoQ

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ average exchange-rate 5.43 R\$/€ (2) Net of licences (3) Adjusted Net Debt

TIM Domestic

Fixed - 2 nd consecutive quarter of FSR growth YoY, higher ARPU, churn contained

Fixed Service Revenues Organic figures, YoY trend	Organic figures		YoY trend	vs. Q2 '23	Highlights
0.6% 0.2% -0.8%	Fixed revenues	2,242	+5.4%	↑ +1.5pp
-1.8%	Equipment	214	+91.5%	+21.3pp ↑	~½ of growth YoY from wholesale deal with OF
-3.9%	Services	2,028	+0.6%	+0.3pp ↑	activation fees drag -2.0pp YoY
	o/w retail (1)	1,275	-1.0%	+1.8pp ↑	lower CB, higher ARPU
	(2) o/w Nat. wholesale	505	+2.4%	-2.7pp ↓	change in regulated prices more than offsetting lower customer volumes
Q3 '22 Q4 Q1 '23 Q2 Q3	o/w Int. wholesale	242	+3.4%	+0.1pp ↑	higher data connectivity YoY

(1) Including ICT revenues generated by TIM Digital Companies (2) Including FiberCop revenues (3) Source: AGCOM

TIM Domestic

Mobile - MSR trend improved despite still affected by MTR reduction and lower CB YoY MNPs under control, higher ARPU, churn contained

Q3 '23 - Delivering & Delayering 09 November 2023 22

P&L - From EBITDA to Net Income TIM Group

Reported data, €m

(1) Non-Recurring Items include provisions for personnel (2021-26 layoffs ex art.4 "Fornero" law), claims and litigation

Liquidity margin - IFRS 16 view TIM Group

Cost of debt ~5.1%*, +0.2pp QoQ and +0.9pp YoY

* Including cost of all leases

(1) Includes €0.7bn repurchase agreements (nominal amount) due in the following 9 months (2) € 30.1bn is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 1.2bn) and current financial liabilities (€ 1.2bn), gross debt figure of € 32.5bn is reconciled with reported number

Q3 '23 - Delivering & Delayering 09 November 2023 24

Gross Debt - IFRS 16 view TIM Group

Well diversified and hedged debt

€ m

~28% of outstanding bonds (nominal amount) denominated in USD and GBP and fully hedged

Net debt - Adjusted TIM Group

€ m; (-) = Cash generated, (+) = Cash absorbed, excluding call-outs

(1) 9M '23: financial investments +74m, 5G Brazil +24m, IFRS 16 +474m, cash taxes and other +128m. 9M '22: Daphne 3 disposal -1,184m, Oi acquisition +1,741m, other financial investments +32m, licences +2,217m (o/w Domestic +1,805m and 5G Brazil 412m) , IFRS 16 +728m, cash taxes and other -200m

ESG - Q3 findings TIM Group

		2023- '25 Plan
E Environment	▪ Launch of "digital telephone booths" project to reduce	Group targets
	the environmental impact of telephone booths	E Net Zero (Scope 1+2+3)	2040
		E Carbon Neutrality (Scope 1+2)	2030
S st ▪ 1 remote corneal surgery at international level enabled by TIM's 5G network (Bari hospital) ▪ Social portfolio with new Artificial Intelligence services ▪ Welfare initiatives: "TIM Summer" holidays for >2.6k main corporate offices (Milan, Turin and Rome) G ▪ virtuous companies as the world's 1st telco ▪ Institutional Investor Awards 2023, TIM awarded for the "Best ESG Program 2023" in the "Mid Cap" category Governance ▪ New HR and Equal Opportunities Policy		E Scope 3 Reduction (1)	-47%	2030
		E Renewable energy on total energy	100%
	Launch of "TIM AI Challenge" to enrich TIM Enterprise	Women in leadership position (2) G	≥29%	2025
	employees' children, discounted childcare facilities in	Scope 1: emissions from production (heating, cogeneration, company fleet) Scope 2: electricity purchase emissions Scope 3: emissions from upstream and downstream activities of the production chain (cat.1-purchase of goods; cat.2; capital goods; cat 11-use of goods sold) Domestic targets
	Refinitiv Diversity and Inclusion Index: TIM confirmed among the world's leaders, ranking in the Top 25 most	E Green Products & Smartphones (3)	≥70%
		E Circular Economy ratio (4)	2€/kg
		S Cloud, IoT & Security service revenues (5)	+21% CAGR 23-25
	published,	Digital Identity Services (6) S	+30% CAGR 23-25	2025
	emphasis on D&I and Gender Equality	S People trained on ESG skills	≥90%
	▪ Certification for Gender Equality obtained (UNI/PdR125:2022) ▪ Adherence to new Code of Conduct on tele-selling	S Young Employees Engagement	≥ 78%

(1) Scope 3 cat.1, 2 and 11, 2019 baseline (2) Women managers, weighted average between Domestic and Brazil targets (≥27% and ≥35% respectively for '23-'25) (3) Baseline 2021 (4) Average revenues from the resale of used materials and assets plus waste recycling per kg of waste produced (5) Old target excluding cloud service revenues (6) PEC, SPID, ature (active services)

TIM Group

Guidance 2023-'25

Organic figures, IFRS 16 / After Lease, growth rates and €bn figures (1)

Over-delivery in 2022, positive acceleration also in '23-'25 despite worsening macro scenario

Slide from "FY '22 Preliminary Results and 2023-'25 Plan" presentation

LSD = Low-Single Digit MSD = Mid-Single Digit LMSD =Low-Mid Single Digit

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ average exchange-rate 5.44 R\$/€

Further questions

please contact the IR team

(+39) 06 3688 2500

Investor\_relations@telecomitalia.it

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