Telecom Italia Rsp

Quarterly Report • May 4, 2022

TELECOM ITALIA INVESTOR RELATIONS

Investor\_relations@telecomitalia.it

www.gruppotim.it

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 Q1 '22 financial and operating data have been extracted or derived, with the exception of some data, from the Financial Information at March 31, 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 Q1 '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 January 1, 2022. The financial results for Q1 '22 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) 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 acquisition of goods and services. In connection with the foregoing, the economic data of the first, second and third quarters 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	Q1 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Change YoY %
REVENUES	3,728	3,815	3,797	3,976	15,316	3,644	3,815	3,728	3,815	3,797	3,981	15,321	3,644	(4.5)
Domestic	3,077	3,132	3,072	3,224	12,505	2,846	3,082	3,077	3,132	3,072	3,229	12,510	2,846	(7.7)
o/w Wireline	2,329	2,363	2,237	2,384	9,313	2,131	2,334	2,329	2,363	2,237	2,389	9,318	2,131	(8.7)
o/w Mobile	892	909	966	965	3,732	851	892	892	909	966	965	3,732	851	(4.6)
Brazil	658	690	731	761	2,840	806	740	658	690	731	761	2,840	806	8.9
Other activities & Elim.	(7)	(7)	(6)	(9)	(29)	(8)	(7)	(7)	(7)	(6)	(9)	(29)	(8)
SERVICE REVENUES	3,387	3,459	3,484	3,576	13,906	3,386	3,472	3,387	3,459	3,484	3,581	13,911	3,386	(2.5)
Domestic	2,753	2,798	2,780	2,852	11,183	2,612	2,758	2,753	2,798	2,780	2,857	11,188	2,612	(5.3)
o/w Wireline	2,139	2,155	2,091	2,184	8,569	2,020	2,144	2,139	2,155	2,091	2,189	8,574	2,020	(5.8)
o/w Mobile	757	783	821	791	3,152	728	757	757	783	821	791	3,152	728	(3.9)
Brazil	641	668	710	733	2,752	782	721	641	668	710	733	2,752	782	8.4
Other activities & Elim.	(7)	(7)	(6)	(9)	(29)	(8)	(7)	(7)	(7)	(6)	(9)	(29)	(8)
EBITDA	1,160	1,593	1,596	731	5,080	1,316	1,600	1,561	1,639	1,641	1,382	6,223	1,387	(13.3)
Domestic	858	1,271	1,250	351	3,730	962	1,260	1,259	1,315	1,294	999	4,867	1,029	(18.3)
Brazil	304	326	347	385	1,362	356	342	304	328	348	388	1,368	360	5.1
Other activities & Elim.	(2)	(4)	(1)	(5)	(12)	(2)	(2)	(2)	(4)	(1)	(5)	(12)	(2)
EBITDA After Lease	965	1,387	1,389	520	4,261	1,098	1,397	1,366	1,433	1,434	1,171	5,404	1,169	(16.3)
Domestic	733	1,141	1,124	223	3,221	837	1,135	1,134	1,185	1,168	871	4,358	904	(20.4)
Brazil	234	250	266	302	1,052	263	264	234	252	267	305	1,058	267	1.1
Other activities & Elim.	(2)	(4)	(1)	(5)	(12)	(2)	(2)	(2)	(4)	(1)	(5)	(12)	(2)
CAPEX	691	1,117	912	1,910	4,630	932	716	691	877	912	1,346	3,826	932	30.2
Domestic	490	975	765	1,147	3,377	706	490	490	735	765	1,147	3,137	706	44.1
Brazil	201	142	147	763	1,253	226	226	201	142	147	199	689	226	0.3
EFCF	469	(106)	97	172	632	301
EFCF After Lease	307	(218)	(61)	34	6 2	123
NET DEBT (2)	21,155	22,072	22,164	22,187	22,187	22,639
NET DEBT After Lease (2)	16,591	17,415	17,613	17,573	17,573	17,673

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

(1) Inwit equity share € 43m in FY '21 and € 17m in Q1 '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

Q1 '22 Financial and Operating Figures Investor Relations

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
EBITDA	1,735	3,398	5,118	6,739	1,160	2,753	4,349	5,080	1,316
CAPEX	(599)	(1,254)	(2,006)	(3,409)	(691)	(1,808)	(2,720)	(4,630)	(932)
o/w spectrum	-	-	-	-	-	(240)	(240)	(804)	-
CHANGE IN WORKING CAPITAL (1)	(348)	(599)	(738)	(26)	286	(126)	(546)	994	(80)
Change in net operating working capital	(229)	(53)	(60)	772	298	(96)	(257)	733	(91)
Change in inventories	(22)	6	(10)	20	(47)	(55)	(73)	(39)	(20)
Change in trade receivables	258	329	401	484	9 1	135	150	257	222
Change in trade payables	(931)	(1,293)	(1,234)	(193)	(312)	(391)	(439)	1,008	(497)
Other changes in operating receivables/payables	466	905	783	461	566	215	105	(493)	204
Change in provisions for employee benefits	(8)	(435)	(534)	(628)	262	256	10	(83)	38
Change in operating provisions and other changes	(111)	(111)	(144)	(170)	(274)	(286)	(299)	344	(27)
OPERATING FREE CASH FLOW Reported	788	1,545	2,374	3,304	755	819	1,083	1,444	304
Licence	-	-	(110)	(110)	-	(240)	(295)	(435)	(186)
OPERATING FREE CASH FLOW net of Licence	788	1,545	2,484	3,414	755	1,059	1,378	1,879	490
Financial Expenses	(295)	(604)	(904)	(1,186)	(288)	(587)	(757)	(1,053)	(308)
Cash Taxes & Other	(27)	37	86	186	2	(109)	(161)	(194)	119
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
Dividends and change in Equity (2)	(40)	(348)	(344)	974	(24)	(337)	(396)	(410)	(26)
Disposal and Financial investments	613	1,212	1,213	1,483	1,721	1,668	1,645	1,804	(11)
Licence	-	-	(110)	(110)	-	(240)	(295)	(435)	(186)
IFRS & IAS	(116)	(145)	(226)	(419)	5	(200)	(252)	(452)	(530)
NET CASH FLOW	923	1,697	2,199	4,342	2,171	1,254	1,162	1,139	(452)
EQUITY FREE CASH FLOW	466	978	1,666	2,414	469	363	460	632	301
Lease Impact	(271)	(447)	(673)	(799)	(162)	(274)	(432)	(570)	(178)
EQUITY FREE CASH FLOW AFTER LEASE	195	531	993	1,615	307	89	28	6 2	123
NET DEBT	26,745	25,971	25,469	23,326	21,155	22,072	22,164	22,187	22,639
Lease Impact	(5,034)	(4,876)	(4,728)	(4,732)	(4,564)	(4,657)	(4,551)	(4,614)	(4,966)
NET DEBT After Lease	21,711	21,095	20,741	18,594	16,591	17,415	17,613	17,573	17,673

(1) See details in next slide (2) FY '20 figure includes: € 1,345m change in Equity related to Inwit and -€ 390m Dividends Unaudited figures

BACK TO INDEX

TIM Group Working Capital

€m, IFRS 16

		TIM Group			Domestic			Brasil
	Q1 '21	Q1 '22	Δ abs	Q1 '21	Q1 '22	Δ abs	Q1 '21	Q1 '22	Δ abs
Operating WC & Other	286	(80)	(366)	293	105	(188)	(8)	(182)	(174)
License			-			-			-
License paid in the year	-	186	186	-	-	-	-	186	186
Non recurring items (not paid)	(401)	(71)	330	(401)	(67)	334	-	(4)	(4)
Recurring Operating WC	(115)	35	150	(108)	38	146	(8)	0	8
Inventory				(41)	(16)	25
Trade Receivables				33	216	183
Trade Payables				(219)	(290)	(71)
Other Operating Payables/Receivables & Funds				119	128	9
- o/w Litigations & Settlements				(84)	(81)	3
- o/w Payables vs. Personnel				84	75	(9)
- o/w Personnel Exit (Fornero Law)				(128)	(92)	36
- o/w VAT				419	408	(11)
- o/w Billing (1)				(48)	(25)	23
- o/w Net Debts vs INPS				(38)	(48)	(10)
- o/w Deferred Costs & Revenues				(30)	(50)	(20)
-o/w Payment in Advance vs Suppliers/Customers				(3)	(24)	(21)

TIM Group Balance Sheet

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	9M '21	FY '21	Q1 '22
CURRENT ASSETS	9,513	9,611	9,036	10,812	12,057	11,586	11,029	14,070	10,272
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
Cash and cash equivalents	3,265	3,603	2,858	4,829	4,370	4,969	4,443	6,904	3,272
Discontinued operations/assets held for sale	-	24	-	-	-	365	355	-	-
o/w of a financial nature	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	24	-	-	-	365	355	-	-
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
Inventories	282	256	272	242	289	300	316	282	309
Current income tax receivables	49	46	46	86	30	42	40	79	88
Current financial receivables arising from lease contracts	43	36	34	55	67	60	42	56	61
Other investments	-	-	-	-	-	-	-	-	-
NON-CURRENT ASSETS	58,482	56,946	55,819	62,422	61,667	62,218	61,916	55,117	56,023
Intangible assets	30,027	29,737	29,452	29,587	29,297	29,395	29,173	25,715	26,063
Goodwill	22,908	22,870	22,825	22,847	22,820	22,710	22,689	18,568	18,657
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
Tangible assets	13,287	12,986	12,800	13,141	12,980	13,049	13,009	13,311	13,692
Property, plant and equipment owned	13,287	12,986	12,800	13,141	12,980	13,049	13,009	13,311	13,692
Right of Use assets	5,276	5,022	4,879	4,992	4,851	4,898	4,783	4,847	5,177
Other assets	9,892	9,201	8,688	14,702	14,539	14,876	14,951	11,244	11,091
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
Non-current financial assets	3,116	2,969	2,519	2,310	2,088	2,243	2,220	2,330	2,089
o/w receivable for lease contracts	51	47	42	43	45	49	46	45	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
Deferred tax assets	937	896	1,080	7,496	7,547	7,592	7,594	3,513	3,470
Other investments	44	51	52	54	57	82	120	156	134
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
TOTAL ASSETS	67,995	66,557	64,855	73,234	73,724	73,804	72,945	69,187	66,295

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
CURRENT LIABILITIES	10,818	10,534	10,380	11,167	13,043	12,378	13,480	16,364	13,739
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
Current financial liabilities	4,202	4,382	4,416	4,308	5,742	5,242	5,054	6,596	3,811
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
o/w liabilities for lease contracts	679	697	643	631	615	660	649	651	683
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	-	-	-	-	68	58	-	-
o/w of a financial nature	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	-	-	-	-	68	58	-	-
Current income tax payables	43	44	56	271	255	248	243	295	273
NON-CURRENT LIABILITIES	35,166	34,629	33,002	33,227	30,871	30,840	28,857	30,784	29,821
Non-current financial liabilities	29,776	29,187	27,873	27,854	25,418	25,818	25,669	27,501	26,579
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
o/w liabilities for lease contracts	4,380	4,203	4,107	4,199	4,061	4,106	3,990	4,064	4,394
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
Employee benefits	1,179	916	830	724	939	888	710	699	700
Provisions	688	753	750	770	769	689	668	926	956
Deferred tax liabilities	419	410	323	277	219	288	341	245	220
TOTAL LIABILITIES	45,984	45,163	43,382	44,394	43,914	43,218	42,337	47,148	43,560
EQUITY	22,011	21,394	21,473	28,840	29,810	30,586	30,608	22,039	22,735
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
Equity attributable to Minority Interests	1,388	1,313	1,246	2,625	4,439	4,592	4,598	4,625	4,949
TOTAL LIABILITIES & EQUITY	67,995	66,557	64,855	73,234	73,724	73,804	72,945	69,187	66,295

BACK TO INDEX

Domestic Results

€m, IFRS 16 & After Lease view

			REPORTED								ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q1 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Change YoY %
REVENUES	3,077	3,132	3,072	3,224	12,505	2,846	3,082	3,077	3,132	3,072	3,229	12,510	2,846	(7.7)
Service Revenues	2,753	2,798	2,780	2,852	11,183	2,612	2,758	2,753	2,798	2,780	2,857	11,188	2,612	(5.3)
Wireline Services	2,139	2,155	2,091	2,184	8,569	2,020	2,144	2,139	2,155	2,091	2,189	8,574	2,020	(5.8)
Retail	1,368	1,362	1,335	1,400	5,466	1,294	1,368	1,368	1,362	1,335	1,400	5,466	1,294	(5.5)
National Wholesale + FiberCop	556	542	510	507	2,114	493	556	556	542	510	512	2,119	493	(11.2)
International Wholesale	217	248	246	276	987	229	222	217	248	246	276	987	229	3.2
Other	(2)	4	0	1	3	4	(2)	(2)	4	0	1	3	4
Mobile Services	757	783	821	791	3,152	728	757	757	783	821	791	3,152	728	(3.9)
Retail	676	685	677	677	2,716	641	676	676	685	677	677	2,716	641	(5.2)
Wholesale and Other	81	97	143	114	436	87	81	81	97	143	114	436	87	7.3
Elimination & Other	(143)	(140)	(132)	(123)	(538)	(136)	(143)	(143)	(140)	(132)	(123)	(538)	(136)
Handsets	324	334	292	372	1,322	234	324	324	334	292	372	1,322	234	(27.8)
OPEX	2,219	1,861	1,822	2,873	8,775	1,884	1,822	1,818	1,817	1,778	2,230	7,643	1,817	(0.3)
EBITDA	858	1,271	1,250	351	3,730	962	1,260	1,259	1,315	1,294	999	4,867	1,029	(18.3)
EBITDA Margin	27.9%	40.6%	40.7%	10.9%	29.8%	33.8%	40.9%	40.9%	42.0%	42.1%	30.9%	38.9%	36.2%	(4.7 p.p.)
EBITDA After Lease	733	1,141	1,124	223	3,221	837	1,135	1,134	1,185	1,168	871	4,358	904	(20.4)
EBITDA AL Margin	23.8%	36.4%	36.6%	6.9%	25.8%	29.4%	36.8%	36.9%	37.8%	38.0%	27.0%	34.8%	31.8%	(5.1 p.p.)
CAPEX	490	975	765	1,147	3,377	706	490	490	735	765	1,147	3,137	706	44.1
% on revenues	15.9%	31.1%	24.9%	35.6%	27.0%	24.8%	15.9%	15.9%	23.5%	24.9%	35.5%	25.1%	24.8%	8.9 p.p.
Headcount EoP	43,004	43,157	42,811	42,591	42,591	42,782

(1) Organic figures excluding non-recurring items and change in the scope of consolidation; domestic CAPEX excluding licence (€ 240m spectrum pre-payment in Q2 '21)

Q1 '22 Financial and Operating Figures Investor Relations

Domestic Wireline

€m, IFRS 16

	REPORTED						ORGANIC (1)
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q1 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Change YoY %
WIRELINE REVENUES	2,329	2,363	2,237	2,384	9,313	2,131	2,334	2,329	2,363	2,237	2,389	9,318	2,131	(8.7)
Wireline Service Revenues	2,139	2,155	2,091	2,184	8,569	2,020	2,144	2,139	2,155	2,091	2,189	8,574	2,020	(5.8)
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	1,368 563 285 556 222	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	(5.5) (8.8) 18.5 (11.2) 3.2
Other	(2)	4	-	1	3	4	(2)	(2)	4	-	1	3	4
Equipments	190	208	146	200	744	111	190	190	208	146	200	744	111	(41.5)
Retail lines ('000) Churn rate % Broadband Consumer Business UBB							8,774 3.6 7,746 6,545 1,202 4,695	8,774 3.6 7,746 6,545 1,202 4,695	8,765 3.4 7,783 6,541 1,243 4,926	8,729 3.0 7,811 6,579 1,232 5,084	8,647 3.5 7,733 6,511 1,222 5,186	8,647 13.5 7,733 6,511 1,222 5,186	8,539 3.4 7,643 6,431 1,212 5,244	(2.7) (0.2 p.p.) (1.3) (1.7) 0.8 11.7
Wholesale lines ('000)							7,908	7,908	7,822	7,734	7,729	7,729	7,729	(2.3)
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB							2,625 180 722 4,381	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	(20.7) (13.1) (31.6) 14.1
ARPU Retail (BB & ICT)							32.2	32.2	33.0	32.4	36.3	33.4	33.0	2.5

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations

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)

Unaudited figures BACK TO INDEX

Domestic Mobile

€m, IFRS 16

	ORGANIC (1) REPORTED
	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Q1 '21 comparable base	Q1 '21	Q2 '21	Q3 '21	Q4 '21	FY '21	Q1 '22	Change YoY %
MOBILE REVENUES	892	909	966	965	3,732	851	892	892	909	966	965	3,732	851	(4.6)
Mobile Service Revenues	757	783	821	791	3,152	728	757	757	783	821	791	3,152	728	(3.9)
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	676 58 81	676 58 81	685 56 97	677 57 143	677 57 114	2716 229 436	641 47 87	(5.2) (18.8) 7.3
Handsets and Handsets Bundle	135	126	145	174	580	123	135	135	126	145	174	580	123	(8.6)
Total number of lines ('000) Churn rate %							30,222 3.8	30,222 3.8	30,317 3.7	30,473 3.6	30,466 3.6	30,466 14.7	30,395 3.7	0.6 (0.1 p.p.)
Human Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users							19,554 10,669 27,462 16,793 12,864 11,878	19,554 10,669 27,462 16,793 12,864 11,878	19,306 11,011 27,694 16,683 12,853 11,929	19,172 11,301 27,860 16,559 12,863 12,070	19,054 11,412 27,853 16,440 12,783 12,103	19,054 11,412 27,853 16,440 12,783 12,103	18,799 11,596 27,762 16,166 12,717 12,127	(3.9) 8.7 1.1 (3.7) (1.1) 2.1
Usage Data (GB/users/month)							10.5	10.5	11.1	12.1	11.7	11.4	11.9	13.3
ARPU Reported							7.5	7.5	7.5	7.4	7.4	7.5	7.0	(5.9)
ARPU Human							11.4	11.4	11.7	11.7	11.8	11.7	11.3	(1.3)

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	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	8.9
Service Revenues	4,091	3,926	4,207	4,441	16,665	4,228	4,267	4,382	4,620	17,497	4,584	8.4
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	8.6
o/w Fixed	249	253	270	275	1,047	280	282	286	296	1,144	297	5.7
Handsets	124	61	181	237	603	112	140	130	180	561	143	27.7
OPEX	2,299	2,020	2,325	2,342	8,986	2,332	2,329	2,366	2,370	9,397	2,636	13.0
EBITDA	1,916	1,967	2,063	2,336	8,282	2,008	2,078	2,146	2,429	8,661	2,091	4.1
EBITDA margin	45.5%	49.3%	47.0%	49.9%	48.0%	46.3%	47.2%	47.6%	50.6%	48.0%	44.2%	(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	5.1
EBITDA margin	45.5%	49.3%	47.0%	50.5%	48.1%	46.3%	47.5%	47.7%	50.9%	48.2%	44.7%	(1.6 p.p.)
CAPEX	904	673	850	1,464	3,891	1,324	906	896	4,840	7,966	1,328	0.3
% on revenues	21.4%	16.9%	19.4%	31.3%	22.5%	30.5%	20.6%	19.9%	100.9%	44.1%	28.1%	(2.4 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%	4.7 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%	(1.2 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	1.1
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	7.6
TOTAL MOU (4)	119	124	127	121	123	113	110	103	94	105	88	(22.4)
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

Reported & Organic Reconciliation

			Q1 '21				Q1 '22
			Non Organic elements		Organic
	Reported	Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	3,728	-	87	-	3,815	3,644	-	3,644
Domestic	3,077	-	5	-	3,082	2,846	-	2,846
Brazil	658	-	82	-	740	806	-	806
Other Activities & Eliminations	(7)	-	-	-	(7)	(8)	-	(8)
SERVICE REVENUES	3,387	-	85	-	3,472	3,386	-	3,386
Domestic	2,753	-	5	-	2,758	2,612	-	2,612
Brazil	641	-	80	-	721	782	-	782
Other Activities & Eliminations	(7)	-	-	-	(7)	(8)	-	(8)
EBITDA	1,160	-	39	(401)	1,600	1,316	(71)	1,387
Domestic	858	-	1	(401)	1,260	962	(67)	1,029
Brazil	304	-	38	-	342	356	(4)	360
Other Activities & Eliminations	(2)	-	-	-	(2)	(2)	-	(2)
EBITDA After Lease	965	-	31	(401)	1,397	1,098	(71)	1,169
Domestic	733	-	1	(401)	1,135	837	(67)	904
Brazil	234	-	30	-	264	263	(4)	267
Other Activities & Eliminations	(2)	-	-	-	(2)	(2)	-	(2)
EBIT	28	-	11	(401)	440	209	(71)	280
Domestic	(60)	-	-	(401)	341	92	(67)	159
Brazil	90	-	11	-	101	120	(4)	124
Other Activities & Eliminations	(2)	-	-	-	(2)	(3)	-	(3)

For further questions please contact the IR team

Investor\_relations@telecomitalia.it

www.gruppotim.it

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