Telecom Italia Rsp

Investor Presentation • Jul 27, 2021

TELECOM ITALIA INVESTOR RELATIONS

Investor\_relations@telecomitalia.it

www.gruppotim.it

Index

Key Financials P&L Group Cash Flow & Net Debt Working Capital Balance Sheet -Assets Balance Sheet -Liabilities Domestic Results DomesticWireline Domestic Mobile TIM Brasil Results Reported & Organic Comparable base Wireline Restatements

Disclaimer

Q H exception of some data, from the Half-year Condensed Consolidated Financial Statements at 30 June 2021 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")

Q 2 H 1 '21 of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2020 can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January 2021 . 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 2021 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 understanding of the performance of operations and the financial position of the TIM Group 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 . Moreover, following the adoption of IFRS 16 , the TIM Group uses the following additional alternative performance indicators

• EBITDA adjusted After Lease ("EBITDA -AL"), calculated by adjusting the Organic EBITDA, net according to IFRS 16
• financial debt the net liabilities related to the accounting treatment of lease contracts according to IFRS 16
• Equity Free Cash Flow After Lease, calculated by excluding from the Equity Free Cash Flow the

Such alternative performance measures are unaudited

TIM Group Key Financials

€m, IFRS 16 & After Lease view

BACK TO INDEX
Unaudited figures

				REPORTED				ORGANIC (1)
	Q1 '20 (2)	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Q2 '20 comparable base	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %
REVENUES	3,964	3,795	3,898	4,148	15,805	3,752	3,815	3,779	3,979	3,817	3,899	4,149	15,844	3,752	3,815	1.0
Domestic	3,113	3,146	3,213	3,433	12,905	3,101	3,132	3,163	3,128	3,168	3,214	3,434	12,944	3,101	3,132	(1.0)
o/w Wireline	2,288	2,361	2,336	2,538	9,523	2,352	2,364	2,360	2,289	2,365	2,337	2,539	9,530	2,352	2,364	0.2
o/w Mobile	976	921	1,012	1,029	3,938	892	909	940	990	939	1,012	1,029	3,971	892	909	(3.3)
Brazil	859	658	691	725	2,933	658	690	625	859	658	691	725	2,933	658	690	10.5
Other activities & Elim.	(8)	(9)	(6)	(10)	(33)	(7)	(7)	(9)	(8)	(9)	(6)	(10)	(33)	(7)	(7)
SERVICE REVENUES	3,687	3,537	3,510	3,669	14,403	3,387	3,459	3,520	3,702	3,559	3,511	3,669	14,441	3,387	3,459	(1.7)
Domestic	2,861	2,897	2,855	2,992	11,605	2,753	2,798	2,914	2,876	2,919	2,856	2,992	11,643	2,753	2,798	(4.0)
o/w Wireline	2,153	2,209	2,144	2,273	8,779	2,138	2,157	2,208	2,153	2,213	2,145	2,274	8,785	2,138	2,157	(2.3)
o/w Mobile	856	824	846	852	3,378	757	783	843	870	842	846	852	3,411	757	783	(7.1)
Brazil	834	649	661	687	2,831	641	668	615	834	649	661	687	2,831	641	668	8.7
Other activities & Elim.	(8)	(9)	(6)	(10)	(33)	(7)	(7)	(9)	(8)	(9)	(6)	(10)	(33)	(7)	(7)
EBITDA	1,735	1,663	1,720	1,621	6,739	1,177	1,593	1,740	1,774	1,761	1,764	1,764	7,063	1,578	1,639	(5.8)
Domestic	1,346	1,338	1,397	1,258	5,339	875	1,271	1,435	1,385	1,436	1,441	1,396	5,658	1,276	1,315	(8.4)
Brazil	390	328	325	364	1,407	304	326	308	390	328	325	369	1,412	304	328	6.4
Other activities & Elim.	(1)	(3)	(2)	(1)	(7)	(2)	(4)	(3)	(1)	(3)	(2)	(1)	(7)	(2)	(4)
EBITDA After Lease	1,502	1,465	1,530	1,428	5,925	982	1,387	1,547	1,541	1,563	1,574	1,571	6,249	1,383	1,433	(7.4)
Domestic	1,200	1,211	1,273	1,132	4,816	750	1,141	1,310	1,239	1,309	1,317	1,270	5,135	1,151	1,185	(9.5)
Brazil	303	257	259	297	1,116	234	250	240	303	257	259	302	1,121	234	252	4.9
Other activities & Elim.	(1)	(3)	(2)	(1)	(7)	(2)	(4)	(3)	(1)	(3)	(2)	(1)	(7)	(2)	(4)
CAPEX	599	655	752	1,403	3,409	691	1,117	655	599	655	752	1,403	3,409	691	877	33.9
Domestic	414	549	617	1,168	2,748	490	975	549	414	549	617	1,168	2,748	490	735	33.9
Brazil	185	106	135	235	661	201	142	106	185	106	135	235	661	201	142	34.6
EFCF	466	512	688	748	2,414	469	-106
EFCF After Lease	195	336	462	622	1,615	307	-218
NET DEBT (3)	26,745	25,971	25,469	23,326	23,326	21,155	22,072
NET DEBT After Lease (3)	21,711	21,095	20,741	18,594	18,594	16,591	17,415

(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) (2) INWIT was consolidated line by line for three months in Q1 2020 and is therefore subtracted from comparable base, whereas it is included in

Q2 '21 Financial and Operating Figures Investor Relations

reported figures; YoY comparison on reported data not meaningful (3) Adjusted

TIM Group Profit & Loss

	Q1 '20	H1 '20	9M '20	FY '20	Q1 '21	H1 '21	Change YoY%
REVENUES	3,964 0	7,759 0	11,657 0	15,805 0	3,752 0	7,567 0	(2.5)
Other Income	40	90	121	211	109	169	87.8
TOTAL OPERATING REVENUES AND OTHER INCOME	4,004	7,849	11,778	16,016	3,861	7,736	(1.4)
Acquisition of goods and services	(1,454)	(2,840)	(4,433)	(6,173)	(1,575)	(3,120)	(9.9)
Employee benefits expenses	(715)	(1,372)	(1,946)	(2,639)	(1,038)	(1,715)	(25.0)
Other operating expenses	(272)	(502)	(681)	(961)	(239)	(424)	15.5
Internally generated assets and Others	172	263	400	496	168	293	11.4
EBITDA	1,735	3,398	5,118	6,739	1,177	2,770	(18.5)
EBITDA Margin	43.8%	43.8%	43.9%	42.6%	31.4%	36.6%	(7.2 p.p.)
Depreciation and amortization	(1,201)	(2,348)	(3,482)	(4,616)	(1,130)	(2,268)	3.4
Gains (losses) on disposals of non-current assets	(1)	(8)	(9)	(11)	(2)	(1)	87.5
Impairment reversals (losses) on non-current assets	-	-	-	(8)	-	-
EBIT	533	1,042	1,627	2,104	45	501	(51.9)
EBIT Margin	13.4%	13.4%	14.0%	13.3%	1.2%	6.6%	(6.8 p.p.)
Income (loss) equity invest. valued equity method (1)	441	450	460	472	11	34	(92.4)
Net Financial Income / (Expenses)	(301)	(603)	(909)	(1,179)	(288)	(582)	3.5
Profit (loss) before tax from continuing operations	673	889	1,178	1,397	(232)	(47)
Income tax expense	(82)	(166)	66	5,955	38	2
Profit (loss) from continuing operations	591	723	1,244	7,352	(194)	(45)
Discontinued operations/Non-current assets held for sale	-	-	-	-	-	-
PROFIT (LOSS)	591	723	1,244	7,352	(194)	(45)
Parent Company	560	678	1,178	7,224	(216)	(137)
Minorities	31	45	66	128	22	92
Non-recurring items (2)	(413)	(340)	0	0	310	344
PROFIT (LOSS) NET NON-RECURRING ITEMS	178	383	0	0	116	299	(21.9)

(1) Inwit equity share € 24m in H1 '21, Inwit gain following the merger € 448m in H1 '20 (2) Non-recurring items include personnel provisions (2021-26 layoffs ex art.4 Legge Fornero), legal and COVID related costs

TIM Group Cash Flow & Net Debt

	Q1 '20	H1 '20	FY '20	Q1 '21	H1 '21
EBITDA	1,735	3,398	6,739	1,177	2,770
CAPEX	(599)	(1,254)	(3,409)	(691)	(1,808)
o/w spectrum	-	-	-	-	(240)
CHANGE IN WORKING CAPITAL (1)	(348)	(599)	(26)	269	(143)
Change in net operating working capital	(229)	(53)	772	281	(113)
Change in inventories	(23)	14	38	(46)	(52)
Change in trade receivables	259	321	466	66	108
Change in trade payables	(931)	(1,293)	(193)	(305)	(384)
Other changes in operating receivables/payables	466	905	461	566	215
Change in provisions for employee benefits	(8)	(435)	(628)	262	256
Change in operating provisions and other changes	(111)	(111)	(170)	(274)	(286)
OPERATING FREE CASH FLOW Reported	788	1,545	3,304	755	819
Licence	-	-	(110)	-	(240)
OPERATING FREE CASH FLOW net of Licence	788	1,545	3,414	755	1,059
Financial Expenses	(295)	(604)	(1,186)	(288)	(587)
Cash Taxes & Other	(27)	37	186	2	(109)
o/w Substitute Tax	-	-	-	-	(231)
Net Cash Flow from discontinued operations	-	-	-	-	-
EQUITY FREE CASH FLOW	466	978	2,414	469	363
Dividends and change in Equity (2)	(40)	(348)	974	(24)	(337)
Disposal and Financial investements	613	1,212	1,483	1,721	1,668
Licence	-	-	(110)	-	(240)
IFRS & IAS	(116)	(145)	(419)	5	(200)
NET CASH FLOW	923	1,697	4,342	2,171	1,254
EQUITY FREE CASH FLOW	466	978	2,414	469	363
Lease Impact	(271)	(447)	(799)	(162)	(274)
EQUITY FREE CASH FLOW AFTER LEASE	195	531	1,615	307	89
NET DEBT	26,745	25,971	23,326	21,155	22,072
Lease Impact	(5,034)	(4,876)	(4,732)	(4,564)	(4,657)
NET DEBT After Lease	21,711	21,095	18,594	16,591	17,415

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

TIM Group Working Capital

		TIM Group			Domestic		Brasil
	H1 '20	H1 '21	Δ abs	H1 '20	H1 '21	Δ abs	H1 '20	H1 '21	Δ abs
Operating WC & Other	(599)	(143)	456	(491)	(171)	320	(108)	27	135
License	-	-	-	-	-	-	-	-	-
License paid in the year	-	-	-	-	-	-	-	-	-
Non recurring items (not paid)	(137)	(447)	(310)	(137)	(445)	(308)	-	(2)	(2)
Recurring Operating WC	(736)	(590)	146	(628)	(616)	12	(108)	25	133
Inventory				3	(55)	(58)
Trade Receivables				84	72	(12)
Trade Payables				(736)	(311)	425
Other Operating Payables/Receivables & Funds				21	(322)	(343)
- o/w Litigations & Settlements				(117)	(312)	(195)
- o/w Payables vs. Personnel				86	116	29
- o/w Personnel Exit (Fornero Law)				(166)	(230)	(65)
- o/w VAT				497	458	(39)
- o/w Billing (1)				(19)	2	21
- o/w Net Debts vs INPS				(53)	(40)	13
- o/w Deferred Costs & Revenues				(124)	(237)	(113)

TIM Group Balance Sheet BACK TO INDEX

€m, IFRS 16

	Q1 '20	H1 '20	FY '20	Q1 '21	H1 '21
CURRENT ASSETS	9,493	9,593	10,791	12,059	11,586
Trade and miscellaneous receivables and other current assets (1)	4,803	4,564	4,280	4,298	4,349
Cash and cash equivalents	3,265	3,603	4,829	4,370	4,969
Discontinued operations/assets held for sale o/w of a financial nature	- -	24 -	- -	- -	365 -
o/w of a non-financial nature	-	24	-	-	365
Securities other than investments, other financial receivables and other current financial assets	985	1,007	1,254	2,963	1,461
Inventories (1)	348	313	287	331	340
Current income tax receivables	49	46	86	30	42
Current financial receivables arising from lease contracts	43	36	55	67	60
Other investments		-			-
NON-CURRENT ASSETS	58,482	56,946	62,422	61,667	62,218
Intangible assets	30,027	29,737	29,587	29,297	29,395
Goodwill	22,908	22,870	22,847	22,820	22,710
Intangible assets with a finite useful life	7,119	6,867	6,740	6,477	6,685
Tangible assets	13,287	12,986	13,141	12,980	13,049
Property, plant and equipment owned	13,287	12,986	13,141	12,980	13,049
Right of Use assets	5,276	5,022	4,992	4,851	4,898
Other assets	9,892	9,201	14,702	14,539	14,876
Miscellaneous receivables and other non-current assets	2,387	2,309	2,114	2,072	2,260
Non-current financial assets	3,116	2,969	2,310	2,088	2,243
o/w receivable for lease contracts	51	47	43	45	49
o/w other non-current financial assets	3,065	2,922	2,267	2,043	2,194
Deferred tax assets	937	896	7,496	7,547	7,592
Other investments	44	51	54	57	82
Investments in associates and joint ventures accounted for using the equity method	3,408	2,976	2,728	2,775	2,699
TOTAL ASSETS	67,975	66,539	73,213	73,726	73,804

Unaudited figures

TIM Group Balance Sheet

€m, IFRS 16 Unaudited figures

	Q1 '20	H1 '20	FY '20	Q1 '21	H1 '21
CURRENT LIABILITIES	10,798	10,516	11,146	13,028	12,361
Trade and miscellaneous payables and other current liabilities (1)	6,553	6,090	6,567	7,031	6,803
Current financial liabilities	4,202	4,382	4,308	5,742	5,242
o/w liabilities for financing contracts and others	3,523	3,685	3,677	5,127	4,582
o/w liabilities for lease contracts	679	697	631	615	660
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	-	-	-	68
o/w of a financial nature	-	-	-	-	-
o/w of a non-financial nature	-	-	-	-	68
Current income tax payables	43	44	271	255	248
NON-CURRENT LIABILITIES	35,166	34,629	33,227	30,876	30,845
Non-current financial liabilities	29,776	29,187	27,854	25,418	25,818
o/w liabilities for financing contracts and others	25,396	24,984	23,655	21,357	21,712
o/w liabilities for lease contracts	4,380	4,203	4,199	4,061	4,106
Miscellaneous payables and other non-current liabilities	3,104	3,363	3,602	3,526	3,157
Employee benefits	1,179	916	724	939	888
Provisions	688	753	770	769	689
Deferred tax liabilities	419	410	277	224	293
TOTAL LIABILITIES	45,964	45,145	44,373	43,904	43,206
EQUITY	22,011	21,394	28,840	29,822	30,598
Equity attributable to equity owners of the Parent	20,623	20,081	26,215	25,383	26,006
Equity attributable to Minority Interests	1,388	1,313	2,625	4,439	4,592
TOTAL LIABILITIES & EQUITY	67,975	66,539	73,213	73,726	73,804

BACK TO INDEX

Domestic Results

€m, IFRS 16 & After Lease view

				REPORTED				ORGANIC (1)
	Q1 '20 (2)	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Q2 '20 comparable base	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %
REVENUES	3,113	3,146	3,213	3,433	12,905	3,101	3,132	3,163	3,128	3,168	3,214	3,434	12,944	3,101	3,132	(1.0)
Service Revenues	2,861	2,897	2,855	2,992	11,605	2,753	2,798	2,914	2,876	2,919	2,856	2,992	11,643	2,753	2,798	(4.0)
Wireline Services Retail (3) National Wholesale + FiberCop (4) International Wholesale Other Mobile Services Retail Wholesale and Other Elimination & Other	2,153 1,429 503 218 2 856 747 109 (148)	2,209 1,417 571 224 (3) 825 734 90 (136)	2,144 1,403 527 221 (7) 846 706 140 (135)	2,273 1,467 565 249 (9) 852 707 145 (133)	8,779 5,716 2,167 912 (16) 3,378 2,895 483 (552)	2,138 1,368 556 217 (3) 757 676 81 (142)	2,157 1,362 542 248 5 783 685 97 (141)	2,208 1,422 568 219 (1) 843 752 90 (137)	2,153 1,430 503 218 2 870 762 109 (147)	2,213 1,421 571 224 (3) 842 752 89 (136)	2,145 1,404 527 221 (7) 846 706 140 (135)	2,274 1,467 565 249 (8) 852 707 145 (134)	8,785 5,722 2,167 912 (16) 3,411 2,928 483 (553)	2,138 1,368 556 217 (3) 757 676 81 (142)	2,157 1,362 542 248 5 783 685 97 (141)	(2.3) (4.2) (4.7) 13.2 (7.1) (8.9) 7.6 3.3
Handsets	252	249	358	441	1,300	348	334	249	252	249	358	442	1,301	348	334	34.1
OPEX	1,767	1,808	1,816	2,175	7,566	2,226	1,861	1,728	1,743	1,732	1,773	2,038	7,286	1,825	1,817	5.2
EBITDA EBITDA Margin EBITDA After Lease EBITDA AL Margin	1,346 43.2% 1,200 38.5%	1,338 42.5% 1,211 38.5%	1,397 43.5% 1,273 39.6%	1,258 36.6% 1,132 33.0%	5,339 41.4% 4,816 37.3%	875 28.2% 750 24.2%	1,271 40.6% 1,141 36.4%	1,435 45.4% 1,310 41.4%	1,385 44.3% 1,239 39.6%	1,436 45.3% 1,309 41.3%	1,441 44.8% 1,317 41.0%	1,396 40.7% 1,270 37.0%	5,658 43.7% 5,135 39.7%	1,276 41.1% 1,151 37.1%	1,315 42.0% 1,185 37.8%	(8.4) (3.4 p.p.) (9.5) (3.6 p.p.)
CAPEX % on revenues	414 13.3%	549 17.5%	617 19.2%	1,168 34.0%	2,748 21.3%	490 15.8%	975 31.1%	549 17.4%	414 13.2%	549 17.3%	617 19.2%	1,168 34.0%	2,748 21.2%	490 15.8%	735 23.5%	33.9 6.1 p.p.

(1) Organic figures excluding non-recurring items and change in the scope of consolidation. CAPEX excluding licence (€ 240m spectrum pre-payment in Q2 '21) (2) INWIT was consolidated line by line for three months in Q1 2020 and is therefore subtracted from comparable base, whereas it is included in reported figures; YoY comparison on reported data not meaningful (3) Restated to include ICT revenues generated by TIM Factories, previously included in "Subsidiaries, Adj. & Other" (now "Other") (4) Restated to include FiberCop revenues, previously included in "Subsidiaries, Adj. & Other" (now "Other")

Headcount EoP 45,380 45,473 43,069 42,925 42,925 43,004 43,157

Q2 '21 Financial and Operating Figures Investor Relations

Domestic Wireline

€m, IFRS 16

		REPORTED								ORGANIC (1)
	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %	Q2 '20 comparable base	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %
WIRELINE REVENUES	2,288	2,361	2,336	2,538	9,523	2,352	2,364	0.1	2,360	2,289	2,365	2,337	2,539	9,530	2,352	2,364	0.2
Wireline Service Revenues	2,153	2,209	2,144	2,273	8,779	2,138	2,157	(2.4)	2,208	2,153	2,213	2,145	2,274	8,785	2,138	2,157	(2.3)
Retail Services (2)	1,429	1,417	1,403	1,467	5,716	1,368	1,362	(3.9)	1,422	1,430	1,421	1,404	1,467	5,722	1,368	1,362	(4.2)
o/w Broadband and content	584	575	569	572	2,299	563	554	(3.7)	575	584	575	569	572	2,299	563	554	(3.7)
o/w ICT Services (2)	217	241	266	332	1,056	285	311	28.9	242	217	241	266	332	1,056	285	311	28.5
National Wholesale + FiberCop (3)	503	571	527	565	2,167	556	542	(5.1)	568	503	571	527	565	2,167	556	542	(4.7)
International Wholesale	218	224	221	249	912	217	248	10.7	219	218	224	221	249	912	217	248	13.2
Other	2	(3)	(7)	(9)	(16)	(3)	5		(1)	2	(3)	(7)	(8)	(16)	(3)	5
Equipments	135	152	192	265	744	214	207	36.2	152	135	152	192	265	745	214	207	36.2
Retail lines ('000)									8,943	9,002	8,943	8,784	8,791	8,791	8,774	8,765	(2.0)
Churn rate %									3.0	4.7	3.0	4.0	4.0	15.6	3.6	3.4	0.4 p.p.
Broadband									7,523	7,567	7,523	7,519	7,635	7,635	7,746	7,783	3.5
Consumer									6,282	6,298	6,282	6,304	6,432	6,432	6,545	6,541	4.1
Business									1,241	1,269	1,241	1,214	1,203	1,203	1,202	1,243	0.1
UBB									4,031	3,812	4,031	4,151	4,432	4,432	4,695	4,926	22.2
Wholesale lines ('000)									8,083	8,003	8,083	8,053	7,974	7,974	7,908	7,822	(3.2)
Local Loop Unbundling									3,128	3,298	3,128	2,953	2,783	2,783	2,625	2,472	(21.0)
Wholesale Line Rental									198	203	198	192	184	184	180	172	(13.0)
Bitstream Naked									895	952	895	846	786	786	722	662	(26.0)
UBB									3,862	3,549	3,862	4,063	4,220	4,220	4,381	4,516	16.9
ARPU Retail (BB & ICT)									30.3	29.3	30.3	31.4	34.4	31.3	32.2	33.0	8.6

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) Restated to include ICT revenues generated by TIM Factories, previously included in "Subsidiaries, Adj. & Other" (now "Other") (3) Restated to include FiberCop revenues, previously included in "Subsidiaries, Adj. & Other" (now "Other")

Q2 '21 Financial and Operating Figures Investor Relations

Domestic Wireline - Legenda BACK TO INDEX

WIRELINE REVENUES	Total revenues of Domestic Wireline, including services and equipment
Wireline Service Revenues	Including retail, domestic wholesale, Sparkle (TIS Group), adjustments and eliminations
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale Other	Retail service revenues: consumer + business (including revenues generated by TIM Factories) Data services (xDSL, FTTx), TIM Vision and other contents, TIM Game Cloud, Security, IT and other B2B services. Including revenues generated by TIM Factories Revenues from OLOs, regulated and not regulated (organization view) and from FiberCop (consolidated by line from Q2) TIM Sparkle Group revenues Intercompany adjustment and elimination
Equipments	Equipment sold, including consumer (routers, set-top-box, etc) and B2B (IRU, IT hardware, local networks equipment, etc)
Retail lines ('000) Churn rate % 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)

Restatements on Domestic Wireline

Organic figures (1), €m, IFRS 16

(1) Excluding non-recurring items and change in consolidation area (2) Restated to include ICT revenues generated by TIM Factories, previously included in "Subsidiaries, Adj. & Other" (now "Other") (3) Restated to include FiberCop revenues, previously included in "Subsidiaries, Adj. & Other" (now "Other")

Q2 '21 Financial and Operating Figures Investor Relations

Domestic Mobile

€m, IFRS 16

BACK TO INDEX
Unaudited figures

		REPORTED								ORGANIC (1)
	Q1 '20 (2) pro-forma	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %	Q2 '20 comparable base	Q1 '20	Q2 '20	Q3 '20	Q4 '20	FY '20	Q1 '21	Q2 '21	Change YoY %
MOBILE REVENUES	961	922	1,012	1,029	3,938	892	909	(1.4)	940	990	939	1,012	1,029	3,971	892	909	(3.3)
Mobile Service Revenues	839	825	846	852	3,378	757	783	(5.1)	843	870	842	846	852	3,411	757	783	(7.1)
Retail Services o/w Incoming Wholesale and Other	747 66 92	734 75 90	706 61 140	707 68 145	2,895 271 483	676 58 81	685 56 97	(6.7) (25.5) 7.6	752 75 90	762 6 6 109	752 75 8 9	706 6 1 140	707 6 8 145	2928 271 483	676 58 81	685 56 97	(8.9) (25.5) 7.6
Handsets and Handsets Bundle	122	9 7	166	177	560	135	126	29.8	9 7	120	9 7	166	177	560	135	126	29.8
Total number of lines ('000) Churn rate % Human Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users Usage Data (GB/users/month)									30,502 4.0 20,155 10,347 27,563 17,215 12,875 11,331 9.4	30,522 5.3 20,424 10,098 27,227 17,128 12,673 11,111 8.2	30,502 4.0 20,155 10,347 27,563 17,215 12,875 11,331 9.4	30,165 5.2 19,894 10,272 27,375 17,103 12,920 11,659 9.9	30,170 4.2 19,795 10,375 27,313 16,938 12,818 11,673 10.3	30,170 18.6 19,795 10,375 27,313 16,938 12,818 11,673 9.4	30,222 3.8 19,554 10,669 27,462 16,793 12,864 11,878 10.5	30,317 3.7 19,306 11,011 27,694 16,683 12,853 11,929 11.1	(0.6) (0.3 p.p.) (4.2) 6.4 0.5 (3.1) (0.2) 5.3 18.1
ARPU Reported									8.2	8.3	8.2	7.8	7.8	8.0	7.5	7.5	(8.3)
ARPU Human									12.4	12.3	12.4	11.8	11.9	12.1	11.4	11.7	(5.3)

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) INWIT was consolidated line by line for three months in Q1 2020, and is therefore subtracted from comparable base and reported pro-forma figures

Domestic Mobile - Legenda BACK TO INDEX

MOBILE REVENUES	Total mobile revenues, including services, handsets and handsets bundle
Mobile Service Revenues	Mobile service revenues, including retail, wholesale and other
Retail Services 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	Change YoY %
REVENUES	4,215	3,987	4,388	4,678	17,268	4,340	4,407	10.5
Service Revenues	4,091	3,926	4,207	4,441	16,665	4,228	4,267	8.7
o/w Mobile	3,842	3,673	3,937	4,166	15,618	3,948	3,984	8.5
o/w Fixed	249	253	270	275	1,047	280	282	11.5
Handsets	124	61	181	237	603	112	140
OPEX	2,299	2,020	2,325	2,342	8,986	2,332	2,329	15.3
EBITDA	1,916	1,967	2,063	2,336	8,282	2,008	2,078	5.6
EBITDA margin	45.5%	49.3%	47.0%	49.9%	48.0%	46.3%	47.2%	(2.1 p.p.)
EBITDA net non recurring	1,916	1,967	2,063	2,363	8,309	2,008	2,092	6.4
EBITDA margin	45.5%	49.3%	47.0%	50.5%	48.1%	46.3%	47.5%	(1.8 p.p.)
CAPEX	904	673	850	1,464	3,891	1,324	906	34.6
% on revenues	21.4%	16.9%	19.4%	31.3%	22.5%	30.5%	20.6%	3.7 p.p.
KPI's - Mobile only
Total Penetration (1)	96.2%	95.7%	94.6%	97.2%	97.2%	99.4%	100.1%	4.4 p.p.
Market Share on total lines (1)	23.3%	23.1%	22.4%	22.0%	22.0%	21.5%	21.0%	(2.1 p.p.)
Total Lines ('000) (2)	52,826	52,031	51,159	51,433	51,433	51,728	51,341	(1.3)
TOTAL ARPU (3)	23.9	23.4	25.4	27.0	24.9	25.5	25.8	10.3
TOTAL MOU (4)	119	124	127	121	123	113	110	(11.3)
Exchange rate AVG YTD (R\$/euro)	4.91	5.41	5.70	5.89	5.89	6.60	6.49

Reported & Organic Reconciliation

		Q2 '20				Q2 '21
	Reported	Non Organic elements			Organic
		Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	3,795	-	(38)	(22)	3,779	3,815	-	3,815
Domestic	3,146	-	(5)	(22)	3,163	3,132	-	3,132
Brazil	658	-	(33)	-	625	690	-	690
Other Activities & Eliminations	(9)	-	-	-	(9)	(7)	-	(7)
SERVICE REVENUES	3,537	-	(39)	(22)	3,520	3,459	-	3,459
Domestic	2,897	-	(5)	(22)	2,914	2,798	-	2,798
Brazil	649	-	(34)	-	615	668	-	668
Other Activities & Eliminations	(9)	-	-	-	(9)	(7)	-	(7)
EBITDA	1,663	-	(21)	(98)	1,740	1,593	46	1,639
Domestic	1,338	-	(1)	(98)	1,435	1,271	44	1,315
Brazil	328	-	(20)	-	308	326	2	328
Other Activities & Eliminations	(3)	-	-	-	(3)	(4)	-	(4)
EBITDA After Lease	1,465	-	(18)	(98)	1,547	1,387	46	1,433
Domestic	1,211	-	(1)	(98)	1,310	1,141	44	1,185
Brazil	257	-	(17)	-	240	250	2	252
Other Activities & Eliminations	(3)	-	-	-	(3)	(4)	-	(4)
EBIT	509	-	(9)	(98)	598	456	46	502
Domestic	403	-	-	(98)	501	356	44	400
Brazil	107	-	(9)	-	98	104	2	106
Other Activities & Eliminations	(1)	-	-	-	(1)	(4)	-	(4)

2020 Comparable base

	FY '20 organic	INWIT line by line consolidation on Q1 to be removed for 2020 comparable base (1)	FY '20 comparable base
REVENUES	15,844	(3)	15,841
Domestic	12,944	(3)	12,941
o/w Wireline	9,530	-	9,530
o/w Mobile	3,971	(15)	3,956
Brazil	2,933	-	2,933
Other activities & Elim.	(33)	(1)	(34)
SERVICE REVENUES	14,441	(8)	14,433
Domestic	11,643	(8)	11,635
o/w Wireline	8,785	-	8,785
o/w Mobile	3,411	(17)	3,394
Brazil	2,831	-	2,831
Other activities & Elim.	(33)	(1)	(34)
EBITDA	7,063	(74)	6,989
Domestic	5,658	(74)	5,584
Brazil	1,412	-	1,412
Other activities & Elim.	(7)	-	(7)
EBITDA After Lease	6,249	(54)	6,195
Domestic	5,135	(54)	5,081
Brazil	1,121	-	1,121
Other activities & Elim.	(7)	-	(7)
CAPEX	3,409	(6)	3,403
Domestic	2,748	(6)	2,742
Brazil	661	-	661

For further questions please contact the IR team

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Investor\_relations@telecomitalia.it

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