TELECOM ITALIA INVESTOR RELATIONS

Index

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

Disclaimer

The Q2 '22 and H1 '22 financial and operating data have been extracted or derived, with the exception of some data, from the Half-year Condensed Consolidated Financial Statements at 30 June 2022 of the TIM Group, which has been 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 Q2 '22 and H1 '22 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 limited review by the external auditors (E&Y) on the TIM Group Half-year Condensed Consolidated Financial Statements at 30 June 2022 has 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) and Equity Free Cash Flow. 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 half of 2021, has been recalculated.

TIM Group Key Financials BACK TO INDEX

€m, IFRS 16 & After Lease view

	REPORTED				ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Q1 '21 comparable base	Q2 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Change YoY %
REVENUES	3,728	3,815	3,797	3,976	15,316	3,644	3,913	3,815	3,967	3,728	3,815	3,797	3,981	15,321	3,644	3,913	(1.4)
Domestic	3,077	3,132	3,072	3,224	12,505	2,846	2,908	3,082	3,141	3,077	3,132	3,072	3,229	12,510	2,846	2,908	(7.4)
o/w Wireline	2,329	2,363	2,237	2,384	9,313	2,131	2,169	2,334	2,372	2,329	2,363	2,237	2,389	9,318	2,131	2,169	(8.6)
o/w Mobile	892	909	966	965	3,732	851	874	892	909	892	909	966	965	3,732	851	874	(3.9)
Brazil	658	690	731	761	2,840	806	1,013	740	833	658	690	731	761	2,840	806	1,013	21.8
Other activities & Elim.	(7)	(7)	(6)	(9)	(29)	(8)	(8)	(7)	(7)	(7)	(7)	(6)	(9)	(29)	(8)	(8)
SERVICE REVENUES	3,387	3,459	3,484	3,576	13,906	3,386	3,644	3,472	3,607	3,387	3,459	3,484	3,581	13,911	3,386	3,644	1.0
Domestic	2,753	2,798	2,780	2,852	11,183	2,612	2,671	2,758	2,807	2,753	2,798	2,780	2,857	11,188	2,612	2,671	(4.8)
o/w Wireline	2,139	2,155	2,091	2,184	8,569	2,020	2,056	2,144	2,164	2,139	2,155	2,091	2,189	8,574	2,020	2,056	(5.0)
o/w Mobile	757	783	821	791	3,152	728	751	757	783	757	783	821	791	3,152	728	751	(4.1)
Brazil	641	668	710	733	2,752	782	981	721	807	641	668	710	733	2,752	782	981	21.9
Other activities & Elim.	(7)	(7)	(6)	(9)	(29)	(8)	(8)	(7)	(7)	(7)	(7)	(6)	(9)	(29)	(8)	(8)
EBITDA	1,160	1,593	1,596	731	5,080	1,316	1,342	1,600	1,708	1,561	1,639	1,641	1,382	6,223	1,387	1,563	(8.5)
Domestic	858	1,271	1,250	351	3,730	962	892	1,260	1,316	1,259	1,315	1,294	999	4,867	1,029	1,101	(16.3)
Brazil	304	326	347	385	1,362	356	457	342	396	304	328	348	388	1,368	360	466	18.2
Other activities & Elim.	(2)	(4)	(1)	(5)	(12)	(2)	(7)	(2)	(4)	(2)	(4)	(1)	(5)	(12)	(2)	(4)
EBITDA After Lease	965	1,387	1,389	520	4,261	1,098	1,082	1,397	1,486	1,366	1,433	1,434	1,171	5,404	1,169	1,303	(12.3)
Domestic	733	1,141	1,124	223	3,221	837	763	1,135	1,186	1,134	1,185	1,168	871	4,358	904	972	(18.0)
Brazil	234	250	266	302	1,052	263	326	264	304	234	252	267	305	1,058	267	335	10.8
Other activities & Elim.	(2)	(4)	(1)	(5)	(12)	(2)	(7)	(2)	(4)	(2)	(4)	(1)	(5)	(12)	(2)	(4)
CAPEX	691	1,117	912	1,910	4,630	932	974	716	910	691	877	912	1,346	3,826	932	904	(0.7)
Domestic	490	975	765	1,147	3,377	706	772	490	735	490	735	765	1,147	3,137	706	702	(4.5)
Brazil	201	142	147	763	1,253	226	202	226	175	201	142	147	199	689	226	202	15.9
EFCF	469	(106)	9 7	172	632	301	37
EFCF After Lease	307	(218)	(61)	34	6 2	123	(107)
NET DEBT (2) NET DEBT After Lease (2)	21,155 16,591	22,072 17,415	22,164 17,613	22,187 17,573	22,187 17,573	22,639 17,673	24,654 19,269

TIM Group Profit & Loss

€m, IFRS 16

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	9M '21	FY '21	Q1 '22	H1 '22
REVENUES	3,964	7,759	11,657	15,805	3,728	7,543	11,340	15,316	3,644	7,557
Other Income	40	90	121	211	109	169	211	272	37	78
TOTAL OPERATING REVENUES AND OTHER INCOME	4,004	7,849	11,778	16,016	3,837	7,712	11,551	15,588	3,681	7,635
Acquisition of goods and services	(1,454)	(2,840)	(4,433)	(6,173)	(1,568)	(3,113)	(4,744)	(6,550)	(1,620)	(3,385)
Employee benefits expenses	(715)	(1,372)	(1,946)	(2,639)	(1,038)	(1,715)	(2,241)	(2,941)	(731)	(1,554)
Other operating expenses	(272)	(502)	(681)	(961)	(239)	(424)	(625)	(1,502)	(168)	(342)
Internally generated assets and Others	172	263	400	496	168	293	408	485	154	304
EBITDA	1,735	3,398	5,118	6,739	1,160	2,753	4,349	5,080	1,316	2,658
EBITDA Margin	43.8%	43.8%	43.9%	42.6%	31.1%	36.5%	38.4%	33.2%	36.1%	35.2%
Depreciation and amortization	(1,201)	(2,348)	(3,482)	(4,616)	(1,130)	(2,268)	(3,411)	(4,490)	(1,107)	(2,295)
Gains (losses) on disposals of non-current assets	(1)	(8)	(9)	(11)	(2)	(1)	2	1	-	34
Impairment reversals (losses) on non-current assets	-	-	-	(8)	-	-	-	(4,120)	-	-
EBIT	533	1,042	1,627	2,104	28	484	940	(3,529)	209	397
EBIT Margin	13.4%	13.4%	14.0%	13.3%	0.8%	6.4%	8.3%	-23.0%	5.7%	5.3%
Income (loss) equity invest. valued equity method (1)	441	450	460	472	11	34	44	164	16	31
Net Financial Income / (Expenses)	(301)	(603)	(909)	(1,179)	(288)	(582)	(862)	(1,150)	(317)	(686)
Profit (loss) before tax from continuing operations	673	889	1,178	1,397	(249)	(64)	122	(4,515)	(92)	(258)
Income tax expense	(82)	(166)	66	5,955	43	7	43	(3,885)	(50)	(102)
Profit (loss) from continuing operations	591	723	1,244	7,352	(206)	(57)	165	(8,400)	(142)	(360)
Discontinued operations/Non-current assets held for sale	-	-	-	-	-	-	-	-	-	-
PROFIT (LOSS)	591	723	1,244	7,352	(206)	(57)	165	(8,400)	(142)	(360)
Parent Company	560	678	1,178	7,224	(228)	(149)	(10)	(8,652)	(204)	(483)
Minorities	31	45	66	128	22	92	175	252	62	123
Non-Recurring Items (2)	(413)	(340)	(306)	(6,048)	310	344	293	8,653	53	289
PROFIT (LOSS) NET NON-RECURRING ITEMS	178	383	938	1,304	104	287	458	253	(89)	(71)

(1) Inwit equity share € 43m in FY '21 and € 35m in H1 '22. Inwit gain following the merger € 452m in FY '20 (2) Non-Recurring Items include provisions for personnel (2021-26 layoffs ex art.4 Fornero Law), legal and COVID related costs

Q2 '22 Financial and Operating Figures Investor Relations

Unaudited figures BACK TO INDEX

TIM Group Cash Flow & Net Debt

€m, IFRS 16 & After Lease view

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	9M '21	FY '21	Q1 '22	H1 '22
EBITDA	1,735	3,398	5,118	6,739	1,160	2,753	4,349	5,080	1,316	2,658
CAPEX	(599)	(1,254)	(2,006)	(3,409)	(691)	(1,808)	(2,720)	(4,630)	(932)	(1,906)
o/w spectrum	-	-	-	-	-	(240)	(240)	(804)	-	(89)
CHANGE IN WORKING CAPITAL (1)	(348)	(599)	(738)	(26)	286	(126)	(546)	994	(80)	(399)
Change in net operating working capital	(229)	(53)	(60)	772	298	(96)	(257)	733	(91)	(261)
Change in inventories	(22)	6	(10)	20	(47)	(55)	(73)	(39)	(20)	(37)
Change in trade receivables	258	329	401	484	9 1	134	150	257	222	77
Change in trade payables	(931)	(1,293)	(1,234)	(193)	(312)	(390)	(439)	1,008	(497)	(753)
Other changes in operating receivables/payables	466	905	783	461	566	215	105	(493)	204	452
Change in provisions for employee benefits	(8)	(435)	(534)	(628)	262	256	10	(83)	38	241
Change in operating provisions and other changes	(111)	(111)	(144)	(170)	(274)	(286)	(299)	344	(27)	(379)
OPERATING FREE CASH FLOW Reported	788	1,545	2,374	3,304	755	819	1,083	1,444	304	353
Licence	-	-	(110)	(110)	-	(240)	(295)	(435)	(186)	(469)
OPERATING FREE CASH FLOW net of Licence	788	1,545	2,484	3,414	755	1,059	1,378	1,879	490	822
Financial Expenses	(295)	(604)	(904)	(1,186)	(288)	(587)	(757)	(1,053)	(308)	(660)
Cash Taxes & Other	(27)	37	86	186	2	(109)	(161)	(194)	119	176
o/w Substitute Tax	-	-		-	-	(231)	(231)	(231)	-	-
Net Cash Flow from discontinued operations	-	-	-	-	-	-	-	-	-	-
EQUITY FREE CASH FLOW	466	978	1,666	2,414	469	363	460	632	301	338
Dividends and change in Equity (2)	(40)	(348)	(344)	974	(24)	(337)	(396)	(410)	(26)	(30)
Disposal and Financial investments (3)	613	1,212	1,213	1,483	1,721	1,668	1,645	1,804	(11)	(1,771)
Licence	-	-	(110)	(110)	-	(240)	(295)	(435)	(186)	(469)
IFRS & IAS	(116)	(145)	(226)	(419)	5	(200)	(252)	(452)	(530)	(535)
NET CASH FLOW	923	1,697	2,199	4,342	2,171	1,254	1,162	1,139	(452)	(2,467)
EQUITY FREE CASH FLOW	466	978	1,666	2,414	469	363	460	632	301	338
Lease Impact	(271)	(447)	(673)	(799)	(162)	(274)	(432)	(570)	(178)	(322)
EQUITY FREE CASH FLOW AFTER LEASE	195	531	993	1,615	307	89	28	6 2	123	16
NET DEBT	26,745	25,971	25,469	23,326	21,155	22,072	22,164	22,187	22,639	24,654
Lease Impact	(5,034)	(4,876)	(4,728)	(4,732)	(4,564)	(4,657)	(4,551)	(4,614)	(4,966)	(5,385)
NET DEBT After Lease	21,711	21,095	20,741	18,594	16,591	17,415	17,613	17,573	17,673	19,269

(1) See details in next slide (2) FY '20 figure includes: € 1,345m change in Equity related to Inwit and -€ 390m Dividends (3) Including -€ 1,183m OI acquisition and -€ 558m leasing impact in H1 '22; H1 '21 including +€1,758m KKR transaction

Q2 '22 Financial and Operating Figures Investor Relations

TIM Group Working Capital

€m, IFRS 16

	TIM Group (1)				Domestic		Brasil
	H1 '21	H1 '22	Δ abs	H1 '21	H1 '22	Δ abs	H1 '21	H1 '22	Δ abs
Operating WC & Other	(126)	(399)	(273)	(154)	(19)	135	27	(382)	(409)
License	-	(14)	(14)	-	(14)	(14)	-	-	-
License paid in the year	-	394	394	-		-	-	394	394
Non recurring items (not paid)	(447)	(292)	155 0	(445)	(276)	169 0	(2)	(13)	(11) 0
Recurring Operating WC	(573)	(311)	262	(599)	(309)	290	25	(1)	(26)
Inventory				(58)	(23)	35
Trade Receivables				98	97	(1)
Trade Payables				(317)	(335)	(18)
Other Operating Payables/Receivables & Funds				(322)	(48)	274
- o/w Litigations & Settlements				(311)	(421)	(111)
- o/w Payables vs. Personnel				106	128	22
- o/w Personnel Exit (Fornero Law)				(221)	(223)	(3)
- o/w VAT				458	448	(10)
- o/w Billing (2)				2	(20)	(22)
- o/w Net Debts vs INPS				(40)	(39)	2
- o/w Deferred Costs & Revenues				(237)	(84)	153
-o/w Payment in Advance vs Suppliers/Customers				(35)	178	213

TIM Group Balance Sheet

€m, IFRS 16 Unaudited figures

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	9M '21	FY '21	Q1 '22	H1 '22
CURRENT ASSETS	9,513	9,611	9,036	10,812	12,057	11,586	11,029	14,070	10,272	11,878
Trade and miscellaneous receivables and other current assets	4,889	4,639	4,580	4,346	4,338	4,389	4,307	4,358	4,420	4,481
Cash and cash equivalents	3,265	3,603	2,858	4,829	4,370	4,969	4,443	6,904	3,272	2,391
Discontinued operations/assets held for sale	-	24	-	-	-	365	355	-	-	2,631
o/w of a financial nature	-	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	24	-	-	-	365	355	-	-	2,631
Securities other than investments, other financial receivables and other current financial assets	985	1,007	1,246	1,254	2,963	1,461	1,526	2,391	2,122	1,883
Inventories	282	256	272	242	289	300	316	282	309	324
Current income tax receivables	49	46	46	86	30	42	40	79	88	114
Current financial receivables arising from lease contracts	43	36	34	55	67	60	42	56	61	54
Other investments	-	-	-	-	-	-	-	-	-
NON-CURRENT ASSETS	58,482	56,946	55,819	62,422	61,667	62,218	61,916	55,117	56,023	54,691
Intangible assets	30,027	29,737	29,452	29,587	29,297	29,395	29,173	25,715	26,063	26,908
Goodwill	22,908	22,870	22,825	22,847	22,820	22,710	22,689	18,568	18,657	19,009
Intangible assets with a finite useful life	7,119	6,867	6,627	6,740	6,477	6,685	6,484	7,147	7,406	7,899
Tangible assets	13,287	12,986	12,800	13,141	12,980	13,049	13,009	13,311	13,692	13,971
Property, plant and equipment owned	13,287	12,986	12,800	13,141	12,980	13,049	13,009	13,311	13,692	13,971
Right of Use assets	5,276	5,022	4,879	4,992	4,851	4,898	4,783	4,847	5,177	5,554
Other assets	9,892	9,201	8,688	14,702	14,539	14,876	14,951	11,244	11,091	8,258
Miscellaneous receivables and other non-current assets	2,387	2,309	2,050	2,114	2,072	2,260	2,307	2,266	2,353	2,343
Non-current financial assets	3,116	2,969	2,519	2,310	2,088	2,243	2,220	2,330	2,089	2,011
o/w receivable for lease contracts	51	47	42	43	45	49	46	45	50	50
o/w other non-current financial assets	3,065	2,922	2,477	2,267	2,043	2,194	2,174	2,285	2,039	1,961
Deferred tax assets	937	896	1,080	7,496	7,547	7,592	7,594	3,513	3,470	3,441
Other investments	44	51	52	54	57	82	120	156	134	128
Investments in associates and joint ventures accounted for using the equity method	3,408	2,976	2,987	2,728	2,775	2,699	2,710	2,979	3,045	335
TOTAL ASSETS	67,995	66,557	64,855	73,234	73,724	73,804	72,945	69,187	66,295	66,569

BACK TO INDEX

TIM Group Balance Sheet

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	9M '21	FY '21	Q1 '22	H1 '22
CURRENT LIABILITIES	10,818	10,534	10,380	11,167	13,043	12,378	13,480	16,364	13,739	14,200
Trade and miscellaneous payables and other current liabilities	6,573	6,108	5,908	6,588	7,046	6,820	8,125	9,473	9,655	9,410
Current financial liabilities	4,202	4,382	4,416	4,308	5,742	5,242	5,054	6,596	3,811	4,550
o/w liabilities for financing contracts and others	3,523	3,685	3,773	3,677	5,127	4,582	4,405	5,945	3,128	3,768
o/w liabilities for lease contracts	679	697	643	631	615	660	649	651	683	782
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	-	-	-	-	68	58	-	-	1
o/w of a financial nature	-	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	-	-	-	-	68	58	-	-	1
Current income tax payables	43	44	56	271	255	248	243	295	273	239
NON-CURRENT LIABILITIES	35,166	34,629	33,002	33,227	30,871	30,840	28,857	30,784	29,821	29,844
Non-current financial liabilities	29,776	29,187	27,873	27,854	25,418	25,818	25,669	27,501	26,579	26,469
o/w liabilities for financing contracts and others	25,396	24,984	23,766	23,655	21,357	21,712	21,679	23,437	22,185	21,762
o/w liabilities for lease contracts	4,380	4,203	4,107	4,199	4,061	4,106	3,990	4,064	4,394	4,707
Miscellaneous payables and other non-current liabilities	3,104	3,363	3,226	3,602	3,526	3,157	1,469	1,413	1,366	1,322
Employee benefits	1,179	916	830	724	939	888	710	699	700	812
Provisions	688	753	750	770	769	689	668	926	956	1,007
Deferred tax liabilities	419	410	323	277	219	288	341	245	220	234
TOTAL LIABILITIES	45,984	45,163	43,382	44,394	43,914	43,218	42,337	47,148	43,560	44,044
EQUITY	22,011	21,394	21,473	28,840	29,810	30,586	30,608	22,039	22,735	22,525
Equity attributable to equity owners of the Parent	20,623	20,081	20,227	26,215	25,371	25,994	26,010	17,414	17,786	17,590
Equity attributable to Minority Interests	1,388	1,313	1,246	2,625	4,439	4,592	4,598	4,625	4,949	4,935
TOTAL LIABILITIES & EQUITY	67,995	66,557	64,855	73,234	73,724	73,804	72,945	69,187	66,295	66,569

Domestic Results

€m, IFRS 16 & After Lease view

	REPORTED								ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Q1 '21 comparable base	Q2 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Change YoY %
REVENUES	3,077	3,132	3,072	3,224	12,505	2,846	2,908	3,082	3,141	3,077	3,132	3,072	3,229	12,510	2,846	2,908	(7.4)
Service Revenues	2,753	2,798	2,780	2,852	11,183	2,612	2,671	2,758	2,807	2,753	2,798	2,780	2,857	11,188	2,612	2,671	(4.8)
Wireline Services	2,139	2,155	2,091	2,184	8,569	2,020	2,056	2,144	2,164	2,139	2,155	2,091	2,189	8,574	2,020	2,056	(5.0)
Retail	1,368	1,362	1,335	1,400	5,466	1,294	1,322	1,368	1,362	1,368	1,362	1,335	1,400	5,466	1,294	1,322	(2.9)
National Wholesale + FiberCop	556	542	510	507	2,114	493	492	556	542	556	542	510	512	2,119	493	492	(9.1)
International Wholesale	217	248	246	276	987	229	242	222	257	217	248	246	276	987	229	242	(5.8)
Other	(2)	4	0	1	3	4	(0)	(2)	4	(2)	4	0	1	3	4	(0)
Mobile Services	757	783	821	791	3,152	728	751	757	783	757	783	821	791	3,152	728	751	(4.1)
Retail	676	685	677	677	2,716	641	643	676	685	676	685	677	677	2,716	641	643	(6.2)
Wholesale and Other	81	97	143	114	436	87	108	81	97	81	97	143	114	436	87	108	11.1
Elimination & Other	(143)	(140)	(132)	(123)	(538)	(136)	(136)	(143)	(140)	(143)	(140)	(132)	(123)	(538)	(136)	(136)
Handsets	324	334	292	372	1,322	234	237	324	334	324	334	292	372	1,322	234	237	(29.0)
OPEX	2,219	1,861	1,822	2,873	8,775	1,884	2,016	1,822	1,825	1,818	1,817	1,778	2,230	7,643	1,817	1,807	(1.0)
EBITDA	858	1,271	1,250	351	3,730	962	892	1,260	1,316	1,259	1,315	1,294	999	4,867	1,029	1,101	(16.3)
EBITDA Margin	27.9%	40.6%	40.7%	10.9%	29.8%	33.8%	30.7%	40.9%	41.9%	40.9%	42.0%	42.1%	30.9%	38.9%	36.2%	37.9%	(4.0 p.p.)
EBITDA After Lease	733	1,141	1,124	223	3,221	837	763	1,135	1,186	1,134	1,185	1,168	871	4,358	904	972	(18.0)
EBITDA AL Margin	23.8%	36.4%	36.6%	6.9%	25.8%	29.4%	26.2%	36.8%	37.8%	36.9%	37.8%	38.0%	27.0%	34.8%	31.8%	33.4%	(4.3 p.p.)
CAPEX	490	975	765	1,147	3,377	706	772	490	735	490	735	765	1,147	3,137	706	702	(4.5)
% on revenues	15.9%	31.1%	24.9%	35.6%	27.0%	24.8%	26.5%	15.9%	23.4%	15.9%	23.5%	24.9%	35.5%	25.1%	24.8%	24.1%	0.7 p.p.
Headcount EoP	43,004	43,157	42,811	42,591	42,591	42,782	42,864

Domestic Wireline

€m, IFRS 16

				REPORTED				ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Q1 '21 comparable base	Q2 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Change YoY %
WIRELINE REVENUES	2,329	2,363	2,237	2,384	9,313	2,131	2,169	2,334	2,372	2,329	2,363	2,237	2,389	9,318	2,131	2,169	(8.6)
Wireline Service Revenues	2,139	2,155	2,091	2,184	8,569	2,020	2,056	2,144	2,164	2,139	2,155	2,091	2,189	8,574	2,020	2,056	(5.0)
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale	1,368 563 285 556 217	1,362 554 311 542 248	1,335 546 303 510 246	1,400 543 404 507 276	5,466 2,206 1,302 2,114 987	1,294 514 338 493 229	1,322 518 368 492 242	1,368 563 285 556 222	1,362 554 311 542 257	1,368 563 285 556 217	1,362 554 311 542 248	1,335 546 303 510 246	1,400 543 404 512 276	5,466 2,206 1,302 2,119 987	1,294 514 338 493 229	1,322 518 368 492 242	(2.9) (6.6) 18.4 (9.1) (5.8)
Other	(2)	4	-	1	3	4	(0)	(2)	4	(2)	4	-	1	3	4	(0)
Equipments	190	208	146	200	744	111	113	190	208	190	208	146	200	744	111	113	(45.6)
Retail lines ('000) Churn rate %								8,774 3.6	8,765 3.4	8,774 3.6	8,765 3.4	8,729 3.0	8,647 3.5	8,647 13.5	8,539 3.4	8,442 3.3	(3.7) (0.1 p.p.)
Broadband Consumer Business UBB								7,746 6,545 1,202 4,695	7,783 6,541 1,243 4,926	7,746 6,545 1,202 4,695	7,783 6,541 1,243 4,926	7,811 6,579 1,232 5,084	7,733 6,511 1,222 5,186	7,733 6,511 1,222 5,186	7,643 6,431 1,212 5,244	7,564 6,360 1,204 5,307	(2.8) (2.8) (3.1) 7.7
Wholesale lines ('000)								7,908	7,822	7,908	7,822	7,734	7,729	7,729	7,729	7,659	(2.1)
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB								2,625 180 722 4,381	2,472 172 662 4,516	2,625 180 722 4,381	2,472 172 662 4,516	2,343 165 607 4,619	2,202 161 548 4,819	2,202 161 548 4,819	2,082 156 494 4,997	1,965 151 433 5,110	(20.5) (12.1) (34.6) 13.2
ARPU Retail (BB & ICT)								32.2	33.0	32.2	33.0	32.4	36.3	33.4	33.0	34.8	5.5

Unaudited figures

BACK TO INDEX

Domestic Wireline - Legenda

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 % Broadband Consumer Business UBB	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 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 Retail (BB & ICT)	Total broadband & ICT revenues (Consumer+Business) divided by average active retail customers (€/line/month)

Domestic Mobile

€m, IFRS 16

				REPORTED				ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Q1 '21 comparable base	Q2 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Change YoY %
MOBILE REVENUES	892	909	966	965	3,732	851	874	892	909	892	909	966	965	3,732	851	874	(3.9)
Mobile Service Revenues	757	783	821	791	3,152	728	751	757	783	757	783	821	791	3,152	728	751	(4.1)
Retail Services o/w Incoming Wholesale and Other	676 58 81	685 56 97	677 57 143	677 57 114	2,716 229 436	641 47 87	643 44 108	676 58 81	685 56 97	676 58 81	685 56 97	677 57 143	677 57 114	2716 229 436	641 47 87	643 44 108	(6.2) (21.4) 11.1
Handsets and Handsets Bundle	135	126	145	174	580	123	123	135	126	135	126	145	174	580	123	123	(2.5)
Total number of lines ('000) Churn rate %								30,222 3.8	30,317 3.7	30,222 3.8	30,317 3.7	30,473 3.6	30,466 3.6	30,466 14.7	30,395 3.7	30,427 3.3	0.4 (0.4 p.p.)
Human Not Human (M2M) Calling lines Human Calling								19,554 10,669 27,462 16,793	19,306 11,011 27,694 16,683	19,554 10,669 27,462 16,793	19,306 11,011 27,694 16,683	19,172 11,301 27,860 16,559	19,054 11,412 27,853 16,440	19,054 11,412 27,853 16,440	18,799 11,596 27,762 16,166	18,620 11,808 27,877 16,070	(3.6) 7.2 0.7 (3.7)
Broadband Users LTE Users								12,864 11,878	12,853 11,929	12,864 11,878	12,853 11,929	12,863 12,070	12,783 12,103	12,783 12,103	12,717 12,127	12,717 12,204	(1.1) 2.3
Usage Data (GB/users/month)								10.5	11.1	10.5	11.1	12.1	11.7	11.4	11.9	12.9	16.5
ARPU Reported								7.5	7.5	7.5	7.5	7.4	7.4	7.5	7.0	7.0	(6.7)
ARPU Human								11.4	11.7	11.4	11.7	11.7	11.8	11.7	11.3	11.5	(2.5)

Domestic Mobile - Legenda

MOBILE REVENUES	Total mobile revenues, including services, handsets and handsets bundle
Mobile Service Revenues	Mobile service revenues, including retail, wholesale and other
Retail Services o/w Incoming Wholesale and Other	Retail service revenues, consumer and business including voice, messaging, browsing and content Revenues for voice traffic terminated on TIM mobile customers including visitors 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 Churn rate %	Total mobile customer base, human and not human ('000) Percentage of line lost on average nr of lines in the reported period
Human Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users	Total nr. of human lines Total nr. of not human lines, including machine to machine and data-only SIMs (eg. for tablets) Nr. of active lines (calling at least once within the last month of the reported quarter) Nr. of human active lines (calling at least once within the last month of the reported quarter) Mobile customers using data services 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)
Reported	Total retail service revenues divided by average customer base, human and not human (€/line/month)
Human	Total retail service revenues divided by average human customer base (€/line/month)

Reported, R\$m, IFRS 16

	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q2 '22	Change YoY %
REVENUES	4,215	3,987	4,388	4,678	17,268	4,340	4,407	4,512	4,799	18,058	4,727	5,368	21.8
Service Revenues	4,091	3,926	4,207	4,441	16,665	4,228	4,267	4,382	4,620	17,497	4,584	5,201	21.9
o/w Mobile	3,842	3,673	3,937	4,166	15,618	3,948	3,984	4,097	4,324	16,353	4,287	4,899	23.0
o/w Fixed	249	253	270	275	1,047	280	282	286	296	1,144	297	302	7.3
Handsets	124	61	181	237	603	112	140	130	180	561	143	167	18.3
OPEX	2,299	2,020	2,325	2,342	8,986	2,332	2,329	2,366	2,370	9,397	2,636	2,947	26.5
EBITDA	1,916	1,967	2,063	2,336	8,282	2,008	2,078	2,146	2,429	8,661	2,091	2,421	16.5
EBITDA margin	45.5%	49.3%	47.0%	49.9%	48.0%	46.3%	47.2%	47.6%	50.6%	48.0%	44.2%	45.1%	(2.1 p.p.)
EBITDA net non recurring	1,916	1,967	2,063	2,363	8,309	2,008	2,092	2,153	2,444	8,697	2,111	2,472	18.2
EBITDA margin	45.5%	49.3%	47.0%	50.5%	48.1%	46.3%	47.5%	47.7%	50.9%	48.2%	44.7%	46.1%	(1.4 p.p.)
CAPEX	904	673	850	1,464	3,891	1,324	906	896	4,840	7,966	1,328	1,050	15.9
% on revenues	21.4%	16.9%	19.4%	31.3%	22.5%	30.5%	20.6%	19.9%	100.9%	44.1%	28.1%	19.6%	(1.0 p.p.)
KPI's - Mobile only
Total Penetration (1)	96.2%	95.7%	94.6%	97.2%	97.2%	99.4%	100.5%	101.4%	102.8%	102.8%	104.1%	104.9%	4.4 p.p.
Market Share on total lines (1)	23.3%	23.1%	22.4%	22.0%	22.0%	21.5%	20.9%	20.8%	20.5%	20.5%	20.3%	26.3%	5.4 p.p.
Total Lines ('000) (2)	52,826	52,031	51,159	51,433	51,433	51,728	51,341	51,614	52,066	52,066	52,305	68,695	33.8
TOTAL ARPU (3)	23.9	23.4	25.4	27.1	24.9	25.5	25.8	26.5	27.7	26.4	27.4	25.8	0.1
Exchange rate AVG YTD (R\$/euro)	4.91	5.41	5.70	5.89	5.89	6.60	6.49	6.38	6.36	6.36	5.87	5.56

Reported & Organic Reconciliation

	Q2 '21					Q2 '22
	Reported	Non Organic elements			Organic
		Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	3,815	-	152	-	3,967	3,913	-	3,913
Domestic	3,132	-	9	-	3,141	2,908	-	2,908
Brazil	690	-	143	-	833	1,013	-	1,013
Other Activities & Eliminations	(7)	-	-	-	(7)	(8)	-	(8)
SERVICE REVENUES	3,459	-	148	-	3,607	3,644	-	3,644
Domestic	2,798	-	9	-	2,807	2,671	-	2,671
Brazil	668	-	139	-	807	981	-	981
Other Activities & Eliminations	(7)	-	-	-	(7)	(8)	-	(8)
EBITDA	1,593	-	68	(47)	1,708	1,342	(221)	1,563
Domestic	1,271	-	1	(44)	1,316	892	(209)	1,101
Brazil	326	-	67	(3)	396	457	(9)	466
Other Activities & Eliminations	(4)	-	-		(4)	(7)	(3)	(4)
EBITDA After Lease	1,387	-	52	(47)	1,486	1,082	(221)	1,303
Domestic	1,141	-	1	(44)	1,186	763	(209)	972
Brazil	250	-	51	(3)	304	326	(9)	335
Other Activities & Eliminations	(4)	-	-	-	(4)	(7)	(3)	(4)
EBIT	456	-	21	(47)	524	188	(221)	409
Domestic	356	-	-	(44)	400	54	(209)	263
Brazil	104	-	21	(3)	128	140	(9)	149
Other Activities & Eliminations	(4)	-	-	-	(4)	(6)	(3)	(3)