Telecom Italia Rsp

Investor Presentation • Feb 15, 2023

FY 2022 PRELIMINARY RESULTS AND 2023-'25 PLAN

15 FEBRUARY 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.

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.

Analysts and investors are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation.

TIM undertakes no obligation to release publicly the results of any updates or revisions to these forward-looking statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation, changes in TIM business or acquisition strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. The information contained in this presentation does not purport to be comprehensive.

The 2022 preliminary financial results of the TIM Group were drafted 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 2022 preliminary financial results of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2021, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January, 2022. Please note that the 2022 preliminary financial results of the TIM Group are unaudited.

This presentation does not constitute a recommendation regarding the securities of TIM. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by TIM S.p.A. or any of its subsidiaries.

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.

As described in the 2021 TIM Group Consolidated Financial Statements, during the fourth quarter of 2021, TIM refined some aspects of the booking of certain commercial agreements concerning the sale of goods with deferred delivery. This refinement entailed, for the first, second and third quarters of 2021, the redetermination of the distribution over time of revenues and purchases of materials and services. In connection with the foregoing, the economic data of the first nine months and of the third quarter of 2021, has been recalculated.

Q4 and FY '22 Preliminary Results #²

2023-'25 Group Strategic Plan #³

FY '22 - A year of solid execution despite unprecedented headwinds TIM Group

Above guidance on all targets	revenues		Low single digit decrease	+1.3% YoY
	EBITDA	Upgraded in Aug '22	High single digit decrease Low teens decrease (After Lease)	-6.7% YoY -10.6% YoY After Lease
	CAPEX		€ 4.1bn Group (3) € 3.2bn Domestic	€ 4bn Group €3.1bn Domestic

Building on 5 strategic pillars TIM Group

Ambitions	Back to growth: operational turnaround	Sound financial structure	Stability & credibility driven by consistency	Be the driver for the Country's digitalization	Leadership in ESG dimensions
		Capture new growth opportunities	▪ Beat market growth in ICT sector with TIM Enterprise at the forefront ▪ Develop innovative services and alternative business models at zero cost		Develop a path to structurally deleverage
Strategic pillars		Revamp TIM's role in the industry	▪ Regain leadership in driving back value ▪ Promote an updated regulatory equilibrium New "Tone from the Top" ▪	▪ Delayering plan: create options ▪ Sound and disciplined financial
		Transform processes to drive efficiency & productivity	▪ Broad end-to-end approach ▪ Clear and measurable efficiency targets ▪ Organization simplification & productivity		management ▪ Be prepared for potential industry consolidation
		Refocus priorities for each business line	▪ Consumer: reposition and re-calibrate ▪ Enterprise: integrated operating model ▪ Infrastructure: efficient technology upgrade ▪	Brazil: continue the growth story to next-generation telco

Refocusing priorities for each business line TIM Group

	Strategic guidelines		2022 achievements: progressing on all priorities
TIM Consumer	Reposition towards premium/ high reliability operator Restructure operating model	n a	▪ Cool the market, stabilize ARPU, reduce churn ▪ "Volume to value" ongoing: premium positioning and "more for more" products ▪ Content strategy revised, deal renegotiated, new partnership signed ▪ Leadership on FTTH: TIM 1st operator in market share with 23.1% in Q3 (+3.2pp YoY)
TIM Enterprise	New integrated model Leveraging leadership to accelerate growth	pl n o ati m or f s n a	▪ Service revenues growth >2x vs. market ▪ Shift from traditional to advanced connectivity ongoing ▪ Pushed on innovative ICT Services, with overperformance on cloud (+50% YoY) ▪ Prioritized focus on large corporates and PA
NetCo	Efficient UBB infrastructure development Premium connectivity	Tr	▪ on track, coverage reached 32% of technical units(1) FTTH roll-out ▪ Fiber migration and technology upgrade ongoing ▪ Delivered on NRRP roll-out milestones: achieved 104% and 148% of "Italia 1Giga" and (2), respectively "5G backhauling" target for 2022
TIM Brasil	Over-delivering on growth targets, benefiting from market consolidation		▪ Strong service revenues growth, with +19.8% YoY in Mobile and +7.7% YoY in Fixed ▪ Oi integration on track: ~9m clients migrated until Jan, 74% of full network integrated, >500 sites decommissioned Network leadership: largest mobile coverage in Brazil, 1st ▪ to cover 100% of cities ▪ Steady FTTH migration and launch of "TIM UltraFibra" new premium identity

12 months of TIM Entities in a nutshell (1/2) TIM Domestic

	Preliminary pro-forma figures	FY '22	Main KPIs
TIM Consumer	Revenues o/w Services	-9% YoY -7% YoY	Fixed net adds improved YoY	Fixed (k lines) +23∆YoY -91 -55 -22 -54 -72 -91 -98 Fixed & mobile			Fixed churn 13,6% FY '21	13,3% FY '22
			Mobile line losses contained	Q1'22 Mobile (k lines, human) +79 MNP -265 Q1 '22	Q2 +188 -183 Q2	Q3 +109 -34 Q3	Q4 +20∆YoY -136 Q4	churn reduced notwithstanding price ups in '22		Mobile churn 21,5% FY '21	20,0% FY '22
	Revenues	+8% YoY	FY '22 Revenues	∆ YoY			Market trend	Change in revenue mix % weight	∆ YoY
TIM Enterprise	o/w Services	+11% YoY	Connectivity Cloud IoT Security Other IT Total revenues	-2% +54% +11% +41% -11% +8%			-4% +23% +9% +14% -4% +5%	42% 26% 2% 3% 27%	-2pp +7pp - +1pp -5pp
			Increased value of contracts signed Services +13% YoY (1)				Contracts activated in '22 ~€ 0.7bn potential value			Active CONSIP contracts ~€ 2.0bn potential value

12 months of TIM Entities in a nutshell (2/2) TIM Group

	Preliminary pro-forma figures	FY '22	Main KPIs
NetCo	Revenues o/w Services	-4% YoY -4% YoY	Continued expansion of FTTH, in line with plan All FY roll	FiberCop coverage FTTH technical units 28% 26% ~25% 6,3 6,8 ~6 2021 Q1'22 Q2 Incremental FTTH units rebased 400	32% 29% 7,2 7,7 Q3 Q4	NRRP targets achieved "Italia 1Giga"	81% market share 16m fixed accesses, o/w >72% FTTx >94% FTTx coverage(1) ,
			out targets achieved	300 200 100 100 0 Jan Mar May Jul Sep Nov		>14k tech.units covered "5G backhauling" 169 sites covered	o/w >59% >100Mbps
	Revenues	+19% YoY		Strengthening	Mobile	▪ Leadership in 5G launch ▪ Integration of Oi mobile assets	on track
TIM Brasil	o/w Services +19% YoY		Key strategic	the core	Broadband	▪ Carve-out of fiber assets, asset light model to accelerate footprint growth
			initiatives on track	Accelerating	B2B/IoT	▪ Consolidated Agriculture and Logistics verticals
				beyond connectivity	Consumer platform	▪ New partnership for digital services ▪ Achieved 5.5% equity in C6 Bank

Transforming processes to drive efficiency and productivity

		2022	2023	2024
TARGET SAVINGS (€bn) (1) o/w OPEX savings (2) o/w cash cost / CAPEX extra-savings		0.3 0.3 -	1.1 0.7 0.4	1.5 1.0 0.5	€0.3bn savings in '22 achieved through labor and external OPEX savings 112% of target
	Committing on big / key initiatives addressing >50% of tot. cash cost baseline		2022 achievements
Simplify cost structure	▪ ▪	Sourcing optimization through fixed operating model review, request for quotation and renegotiation of contracts Energy spend reduction and valorization of real estate assets	✓ Labour target achieved ▪ >1.3k early retirements from September to YE ▪ Reduction of total worked hours for >70% of FTEs ▪ ~0.8k voluntary exits, 60% more than target
Rightsize & talents' uplift	▪ ▪ ▪	Labour: hourly reduction, early retirements & voluntary exits Insourcing: re-skilling ~650 resources to avoid extra external costs Shared Service Center: centralization of shared service activities	✓ Target on other OpEx achieved ▪ Procurement: re-negotiation campaigns, improvement of demand management, proactive costs streamlining ▪ Real Estate utilities optimization and space reduction
Enhanced cost optimization	• •	Customer care cost optimization through lower human volumes, increased productivity, make vs buy mix review & near-shoring Increase efficiency of sales channel mix	▪ Interconnection costs optimization through improved fraud detection practices ▪ Other OPEX, in terms of spending review of: IT Costs & Billing & Marketing other COGS Collection
		Digital break-through	Customer Indirect Logistics Care personnel

Revamping TIM's role in the industry while capturing new growth opportunities Timeframe

Short Medium Long

	Pricing	▪ Revision of copper / fiber prices ▪ Creation of links to inflation in wholesale co-investment offer ▪ Progressive introduction of inflation related adjustments in retail prices
	Value added tax	▪ Reducing VAT following EU Directive 2022/542, down from 22%
Potential upside from key value drivers	Energy	▪ Qualification as energy-intensive, with fiscal benefits extended to TLC operators ▪ Move energy prices to a direct link with PUN (1) ▪ Simplification / incentives to renewable energy self-production
	Electromagnetic limits	▪ Release of what are today the tightest limitations on emissions (direct impact on future mobile coverage CAPEX)
	Fair share	▪ Introduction of measures to obtain a fairer redistribution of costs and financial resources needed to address the ever-increasing data traffic and market unbalances
New growth	TIM Consumer	▪ Enhance differentiation of entertainment services ▪ Enrich 5G & ICT portfolio and further develop data driven strategy
opportunities	TIM Enterprise	▪ Further enrich service portfolio, also through key "beyond core" services (selected verticals) ▪ Engage in value creating partnerships and professional services insourcing

Progressing on the path to unlock value TIM Group

			Achievements
Financial discipline		Tight cost control and ROIC based capital allocation, along with efficiency & transformation programs Strong commitment to reduce leverage & maintain a sustainable capital structure despite recent rating actions	✓ € 2bn bank syndicated loan backed by SACE guarantee (Jul '22) ✓ € 0.85bn 5 years new bond issue (Jan '23) ✓ EIB financing greenlighted by European Commission (Jan '23)
Transformation & turnaround	TIM Consumer	Execute transformation & turnaround initiatives to secure a sustainable growth	✓ Brand & market positioning revamped, content strategy revised ✓ New organizational structure in place ✓ CAPEX and IT demand optimized
	TIM Enterprise	✓ ✓ ✓ Create optionality and opportunities	Carve-out roadmap & corporate structure defined Perimeter & execution roadmap confirmed Target operating model updated, execution phase ongoing
Delayering	TIM Brasil	for M&A operations and deleverage	✓ TIM Brasil currently undervalued – significant upside exist (TP at >40% vs. share price) (1)
	NetCo	Vertical dis-integration: separating fixed network from services	✓ Concrete steps forward to raise interest by international funds and Italian institutions ✓ Non-binding offer received from KKR on Feb. 1st, 2023 ✓ Technical table set up by Government, discussion still ongoing

(1) Consensus TIM Brasil 17.5 R\$ @ 27 Jan 2023. Upside on avg. price last 3 months (12.13R\$ as of 10 Feb 2023)

ESG - 2022 main achievements TIM Group

NetCo	TIM Consumer	TIM Enterprise	TIM Brasil
Low C0 impact 2 infrastructures & operations	Renewed commercial identity	Main digital transformation partner	Resource management and stakeholders' interest
Digital society	closer to green & inclusion values	toward sustainability	as drivers of business value
transformation	Quality leadership
▪ Green energy: 46% of total energy from renewables in '22 ▪ Successfully managed higher energy consumption through efficiency interventions ▪ Energy efficiency certificates for € 3.8m revenues ▪ Resale of goods and materials for ~€2.4m revenues ▪ 4G coverage expanded to >99% of population	▪ Green products and smartphones: 60% of total products ▪ Decarbonized emissions for TIM Group websites ▪ Launched 1st ever top quality 10Gbps offer available in the Italian market	▪ Innovative ICT: – Digital services (PEC, SPID, ature) +31% YoY growth on active clients – IoT & Security services with revenues at +20% CAGR 19-22 ▪ National Strategic Hub awarded together with Leonardo, CDP and SOGEI to boost to the digitization of Italian Public Administrations	▪ 100% renewable energy, ~50% self-generated ▪ +127% of data traffic energy efficiency ▪ Inclusion: 1st mobile operator covering 100% of municipalities ▪ Governance: Cyber-Security management best practice (ISO 27001) and Pro-Ethics company st recognition (by CGU - 1 Telco)

▪ Awarded NRRP tenders for UBB coverage expansion and take-up

People – A sustainable workplace

• 43% of women in TIM Boards
• Women in leadership position: 24.0% Domestic and 34.4% Brazil
• Diversity & Inclusion: TIM and TIM Brasil confirmed in Refinitiv and Bloomberg GEI

Q4 and FY '22 Preliminary Results #²

2023-'25 Group Strategic Plan #³

Key financials: improving trends, FY targets achieved/beaten TIM Group

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

	QoQ	comparison		YoY comparison	FY guidance achieved/beaten
	Q3 '22	Q4 '22	FY '21	FY '22
Revenues	+1.1%	+3.3%	-1.9%	-0.3%	FY revenues broadly stable YoY,
o/w Services	+3.0%	+3.6%	-2.1%	+1.3%	services back to growth
EBITDA	-6.5%	+2.7%	-9.6%	-6.7%	FY EBITDA YoY affected by 2021 non
EBITDA After Lease	-11.2%	-1.3%	-11.6%	-10.6%	repeatable items (3) (~7pp YoY on Group EBITDA AL)
CAPEX net of licences	846	1,297	3,942	3,979	FY EFCF affected by DAZN one-off payment
o/w Domestic	660	1,059	3,137	3,127	(€ 0.3bn)
EFCF After Lease	-0.3bn	0.2bn	0.1bn	0bn	FY Net Debt AL affected by extraordinary
Net Debt After Lease (2)	20.1bn		17.6bn	20.0bn	payments (€ 2.4bn net of € 1.2bn cash-in)

FY guidance achieved/beaten

FY EBITDA YoY affected by 2021 nonrepeatable items (3) services back to growth

(~7pp YoY on Group EBITDA AL)

FY EFCF affected by DAZN one-off payment (€ 0.3bn)

FY Net Debt AL affected by extraordinary payments (€ 2.4bn net of € 1.2bn cash-in)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ average exchange-rate 5.44 R\$/€ (2) Adjusted Net Debt After Lease (3) Domestic 2021 non-repeatable items such as deferred costs related to the extension of useful life on CB fixed/mobile, Nat. Wholesale non-recurring items, one-off bonuses accrual write-off. Please refer to "FY '21 Results and 2022-'24 Plan" presentation

FY '22 PRELIMINARY RESULTS & 2023-'25 PLAN 15 February 2023 14

Positive YoY growth both on Revenues and EBITDA in Q4 TIM Group

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

Group Domestic Brazil

Strong improvement of domestic trends, accelerated growth in Brazil

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

Fixed - Service revenues stabilizing, ARPU BB+ICT improving

€m
	Q4 '22	YoY trend
Fixed revenues	2,389	-0.3%
Equipment	209	4.5%	wholesale deal with OF
Services	2,180	-0.8%	higher retail contribution (+1.3pp YoY,+3.6pp QoQ)
o/w retail (1)	1,429	+2.0%	higher ARPU stemming from IT revenues
(2) o/w Nat. wholesale	490	-4.3%	2021 NRI & change in regulated price drag (3)
o/w Int. wholesale	260	-8.5%	lower voice revenues with low marginality

(1) Including ICT revenues generated by TIM Digital Companies (2) Including FiberCop revenues (3) 3.3pp drag on National Wholesale trend YoY from non-recurring items and change in regulated price (4) Source: AGCOM

FY '22 PRELIMINARY RESULTS & 2023-'25 PLAN 15 February 2023 16

Mobile - service revenues improving, "volume to value" ongoing

€m
	Q4 '22	YoY trend
Equipment	155	-11.1%	lower volumes sold
Services	779	-1.5%	1.2pp drag YoY from MTR price reduction
o/w retail	649	-4.2%	lower CB and ARPU
o/w wholesale & other	130	+14.6%	higher roamers and MVNO contribution

FY Domestic OPEX broadly stable YoY, -0.4% YoY in Q4

• Variable costs -2% YoY in FY, with lower interconnection (rationalization of low-margin international voice revenues) and equipment sold more than offsetting higher CoGS related to ICT revenue growth (+23% YoY in '22, +30% in Q4)
• Commercial costs +1% YoY in FY. Higher IDC management (Cloud revenue growth), Content & Vas (Football revenues growth) and Commissioning (one-off positive impact in '21) compensated by lower Bad debt and Customer management (more than compensated in Q4, resulting in an overall reduction of commercial costs at -7% YoY)
• Industrial costs +7% YoY (+7% in Q4) due to higher energy and provisioning costs
• G&A and IT +8% YoY (+3% in Q4) for higher office space costs due to re-openings after lockdown in '21 and higher IT costs related to ICT revenues growth
• Labour -1% YoY (-3% in Q4) driven by solidarity and lower FTEs offsetting one-off bonuses

▪ Energy costs under control and in line with expectation, despite the adverse macro scenario

TIM Brasil

TIM Brasil - A year of strong achievements with all targets delivered

Reported figures, R\$ bn and YoY change

Targets delivered

TIM Group

CAPEX on track, EFCF and Net Debt affected by extraordinary items

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

Group Domestic Brazil

(1) Group CAPEX net of exchange rate fluctuations (average exchange-rate 5.44 R\$/€)

FY '22 PRELIMINARY RESULTS & 2023-'25 PLAN 15 February 2023 20

TIM Group

Liquidity strengthened in Jan. '23 following €850m 5y bond issue

After Lease view - Cost of debt ~3.9%, +0.2pp QoQ, +0.5pp YoY

(1) Includes € 494m repurchase agreements (nominal amount) of which: € 350m will expire in February and € 144m will expire in April 2023 (2) € 24,100m is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 998m) and current financial liabilities (€ 1,117m), the gross debt figure of € 26,215m is reconciled with reported number

Guidance 2023-'25 TIM Group

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

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

FY '22 PRELIMINARY RESULTS & 2023-'25 PLAN (1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ average exchange-rate 5.44 R\$/€

TIM Entities - Value drivers towards 2025 TIM Domestic

	Drivers
TIM Consumer Value turnaround to growth	▪ Turnaround of ARPU trend through enhanced CVM, upselling campaigns and price indexation to inflation ▪ Focus on CB stabilization, also through convergence and premium customer experience ▪ Restructuring of content service business model ▪ Transformation of commercial & caring operating model through improved efficiency/productivity and digitalization scale up
TIM Enterprise Fuel innovation and strive for excellence	Growth above market and margin improvement ▪ Professional services on licensing ▪ Standardized large offerings to push market penetration ▪ Transformation actions (insourcing, vendor consolidation) & commercial partnerships ▪ Inflation recovery and repricing
NetCo A long-term value story	Push on FTTH: 48% coverage by '25 ▪ New FiberCop plan reviewed coherently with NRPP ▪ Leverage new FTTH VULA price and co-investment offers ▪ Evolve high-speed offerings, increase focus on regional market segments ▪ Simplify offer portfolio, reduce backlog, improve delivery and assurance Push on 5G & leverage on passive sharing: 90% coverage by '25

TIM Brasil - The "Next Generation TIM" TIM Brasil

TIM S.A., R\$ bn

	2023	2025	Drivers
Service Revenues	HSD growth	MSD growth CAGR 22-25 (above inflation)	▪ Maintain focus on value, better CB trend, churn normalization ▪ Rational competitive environment ▪ Broadband and new initiatives as complements
EBITDA	LDD growth	HSD growth CAGR 22-25	▪ Manage inflationary pressure with traditional cost control ▪ Contribution margin from Oi's former clients ▪ Digital transformation
CAPEX	<20% on revenues	13.3 cum. 23-25	▪ Synergies from acquired spectrum ▪ 4G Traffic offload following 5G fast-paced roll-out ▪ Asset-light approach on FTTH expansion
EBITDA AL-CAPEX	double-digit growth	double-digit CAGR 22-25	▪ EBITDA contribution as business dynamics evolves ▪ CAPEX allocation: "do more with less" in infrastructure ▪ Sites decommissioning
Shareholder remuneration	~2.3	continuous evolution	▪ Cash generation ▪ Net Income is NOT the limit (distributable reserves ~R\$ 7.5bn)

2023-'25 guidance updated

HSD = High-Single Digit MSD = Mid-Single Digit LDD = Low-Double Digit

Note: guidance does not consider tax reforms, regulatory changes and new spectrum auctions

ESG - Guidance update TIM Group

	NetCo	TIM Consumer	TIM Enterprise	TIM Brasil
ESG objectives	Low C0 impact 2 infrastructures & operations	Renewed commercial identity	Main digital transformation partner	Resource management and stakeholders' interest as drivers of business value
	Digital society transformation	closer to green & inclusion values Quality leadership	toward sustainability
	People – A sustainable workplace

Old targets Updated targets

	E Net Zero (Scope 1+2+3)	2040	2040
	E Carbon Neutrality (Scope 1+2)	2030	2030
Group targets	E Scope 3 Reduction (1)	-47%	2030	-47%	2030
	E Renewable energy on total energy	100%	2025	100%
	G Women in leadership position	29%	2024	≥29%
Domestic targets	E Green Products & Smartphones (2)	≥50%		≥70%	2025
	E Circular Economy ratio(3)	+11% from 0.044€/kg(2)		2€/kg
	S Cloud, IoT & Security service revenues (4)	+20% CAGR 20-24		+21% CAGR 23-25
	S Digital Identity Services	+15% CAGR 22-24	2024	+30% CAGR 22-25
	S People trained on ESG skills	90%		≥90%
	S Young Employees Engagement	≥ 78%		≥ 78%
	S FTTH Coverage (% of technical units)	~60%	2026	48%

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)

(1) Scope 3 cat.1, 2 and 11, 2019 baseline (2) Baseline 2021 (3) Average revenues from the resale of used materials and assets plus waste recycling per kg of waste produced (4) Old target excluding cloud service revenues

Liquidity margin, IFRS 16 view TIM Group

Cost of debt ~4.4%*, +0.2pp QoQ and +0.7pp YoY

* Including cost of all leases

(1) Includes € 494m repurchase agreements (nominal amount) of which: €350m will expire in February and € 144m will expire in April 2023 (2) € 29,482m is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 1,083m) and current financial liabilities (€ 1,117m), the gross debt figure of € 31,682m is reconciled with reported number

Well diversified and hedged debt, IFRS 16 view TIM Group

€ m	NFP adjusted	Fair value	NFP accounting	Gross Debt
GROSS DEBT
Bonds Banks & EIB Derivatives Leases and long rent Other (1)	17,881 7,664 170 5,467 500	177 - 386 - -	18,058 7,664 556 5,467 500	Banks & EIB 24,2% Op. leases and long rent 17,3% Bonds
TOTAL FINANCIAL ASSETS	31,682	563	32,245	Derivatives 56,4% Other 0,5% 1,6%
Liquidity position	5,001	-	5,001
Other	1,317	557	1,874	Average m/l term maturity:
o/w derivatives	1,128	557	1,685	6.5 years (bonds 6.3 years)
o/w active leases o/w other credit	118 71	- -	118 71	Fixed rate portion on M/L term debt ~71% ~32% of outstanding bonds (nominal amount) denominated in USD and GBP and fully hedged
TOTAL	6,318	557	6,875
NET FINANCIAL DEBT	25,364	6	25,370

Energy - 2022 costs almost all hedged, many efficiency initiatives ongoing

Net Energy OPEX	Energy supply
≈ '21 '22e '22bgt	▪ Energy costs for 2022 are almost all hedged ▪ Energy costs for '23 hedged at ~75% including pass-through on colocation ▪ Guarantees of Origin purchase increased, targeting 100% renewables by '25 ▪ Expected new Corporate Power Purchase Agreements, targeting +200 GWh in '23-'25 plan ▪ Photovoltaic plants: 6 GWh/year self-generated in '22, further expanding in following years	~75% hedged in 2023 including pass through on colocation
Fixed network	▪ Decommissioning plan under execution ▪ Lower energy absorption from FTTx vs copper and improved heat management processes ▪ AI, IoT sensors and near-real-time monitoring in exchange spaces
Mobile network	▪ Real-time switch-off of unused frequencies introduced in '22 in first two regions ▪ 3G switch-off ongoing (18k sites) and modernization of base transceiver stations (5k sites) ▪ Distributed energy production plan being defined to serve base radio stations	2023 consumption flat YoY thanks to ~6-7% GWh savings
Data Centers	▪ Green Data Centers with low environmental impact being developed ▪ DC modernization program ongoing, targeting a better PUE(1) vs. sector average ▪ Certification programs ongoing(2)	compensating for growing DC infrastructure and network expansion
Office spaces	▪ Office spaces rationalization, large scale adoption of working from home ▪ Fixed working from home days with savings from closure of offices ▪ Reduction of waste through sustainable behaviors and temperature & light sensors

Goodwill Tax Realignment Revocation Slide from Q3 '22 Results presentation TIM Group

Positive cash impact (€ 0.7bn) in 2022-'23

	Impact on 2020 Financial Statements (benefit: 18 years)	Impact on 2021 Financial Statements (benefit: 50 years)	Impact from revocation
Realignment of the tax value	+€ 5.9bn P&L – Positive item in income tax expenses	-€ 3.8bn P&L – Negative item in income tax expenses	-€ 2.0bn(1) (=2.7-0.7) P&L – Negative item in income tax expenses
TIM SpA intangible assets redeemed € 23.1bn	€ 6.6bn Balance Sheet – DTA	€ 2.7bn Balance Sheet – DTA	- Balance Sheet – DTA
Substitute tax (3%)	€ 0.7bn Balance Sheet – Income tax payables	€ 0.4bn Balance Sheet – Income tax payables	€ 0.4bn Balance Sheet – Income tax payables write-off
Cash out/in for substitute tax	- Balance Sheet – Cash out	€ 0.3bn Balance Sheet – Cash out	€ 0.3bn Balance Sheet – Cash in
Net equity suspended for tax purposes	€ 22.4bn Balance Sheet – Net Equity suspended	€ 22.4bn(2) Balance Sheet – Net Equity suspended	- Balance Sheet – Net Equity suspended

What is new

• Legislation changes have materially worsened the «investment» profitability
• New round of revocation analysis conducted given the significant increase in interest rates
• New Decree ruling on revocation (Sep.29th, 2022):
• ❑ Revocation as if election for realignment had never been made (hence no penalties for omitted substitute tax payments)
• ❑ Full offsetting of the substitute tax paid against other tax debts (i.e. no cap limits)

For further questions please contact the IR team

(+39) 06 3688 2500

Investor\_relations@telecomitalia.it

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