Telecom Italia Rsp

Investor Presentation • Nov 10, 2020

TELECOM ITALIA INVESTOR RELATIONS

Investor\_relations@telecomitalia.it

www.gruppotim.it

Index

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

Disclaimer

The Q3 '20 and 9M '20 financial and operating data have been extracted or derived, with the exception of some data, from the Financial Information at September 30, 2020 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 Q3 '20 and 9M '20 of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2019, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from January 1, 2020. The financial results for Q3 '20 and 9M '20 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 adjusted After Lease ("EBITDA-AL"), calculated by adjusting the Organic EBITDA, net of according to IFRS 16 (applied starting from 2019);

* Adjusted Net Financial Debt After Lease, calculated by excluding from the adjusted net financial debt the liabilities related to the accounting treatment of lease contracts according to IFRS 16 (applied starting from 2019);

* Equity Free Cash Flow After Lease, calculated by excluding from the Equity Free Cash Flow the

TIM Group Key Financials - see next tab for 2019 comparable base details

€m, IFRS 16 & After Lease view

	REPORTED													ORGANIC (1)
	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %	Q3 '19 comparable base	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %
REVENUES	4,471	4,523	4,429	4,551	17,974	3,964	3,795	3,898	(12.0)	4,106	4,467	4,503	4,410	4,535	17,915	3,979	3,817	3,899	(5.0)
Domestic	3,502	3,567	3,454	3,555	14,078	3,113	3,146	3,213	(7.0)	3,435	3,498	3,547	3,435	3,539	14,019	3,128	3,168	3,214	(6.4)
o/w Wireline	2,534	2,586	2,452	2,552	10,124	2,288	2,361	2,336	(4.7)	2,449	2,534	2,586	2,452	2,552	10,124	2,289	2,365	2,337	(4.6)
o/w Mobile	1,122	1,111	1,135	1,143	4,511	976	921	1,012	(10.8)	1,124	1,122	1,102	1,123	1,130	4,477	990	939	1,012	(10.0)
Brazil	979	967	984	1,007	3,937	859	658	691	(29.8)	680	979	967	984	1,007	3,937	859	658	691	1.2
Other activities & Elim.	(10)	(11)	(9)	(11)	(41)	(8)	(9)	(6)		(9)	(10)	(11)	(9)	(11)	(41)	(8)	(9)	(6)
SERVICE REVENUES	4,085	4,142	4,061	4,017	16,304	3,687	3,537	3,510	(13.6)	3,752	4,081	4,120	4,042	3,996	16,239	3,702	3,559	3,511	(6.4)
Domestic	3,155	3,231	3,128	3,072	12,585	2,861	2,897	2,855	(8.7)	3,110	3,151	3,210	3,109	3,051	12,520	2,876	2,919	2,856	(8.2)
o/w Wireline	2,393	2,416	2,269	2,283	9,361	2,153	2,209	2,144	(5.5)	2,266	2,393	2,416	2,269	2,283	9,361	2,153	2,213	2,145	(5.4)
o/w Mobile	916	943	993	923	3,775	856	824	846	(14.7)	981	916	934	981	910	3,741	870	842	846	(13.7)
Brazil	940	922	942	956	3,760	834	649	661	(29.8)	651	940	922	942	956	3,760	834	649	661	1.3
Other activities & Elim.	(10)	(11)	(9)	(11)	(41)	(8)	(9)	(6)		(9)	(10)	(11)	(9)	(11)	(41)	(8)	(9)	(6)
EBITDA (2)	1,946	2,445	2,108	1,652	8,151	1,735	1,663	1,720	(18.4)	1,916	1,970	2,062	2,117	1,998	8,147	1,774	1,761	1,764	(7.9)
Domestic	1,534	1,395	1,625	1,154	5,708	1,346	1,338	1,397	(14.0)	1,596	1,558	1,622	1,656	1,493	6,329	1,385	1,436	1,441	(9.7)
Brazil	414	1,053	485	499	2,451	390	328	325	(33.0)	322	414	442	464	506	1,826	390	328	325	1.0
Other activities & Elim.	(2)	(3)	(2)	(1)	(8)	(1)	(3)	(2)		(2)	(2)	(2)	(3)	(1)	(8)	(1)	(3)	(2)
EBITDA After Lease	1,700	2,192	1,858	1,395	7,145	1,502	1,465	1,530	(17.7)	1,714	1,724	1,765	1,825	1,702	7,015	1,541	1,563	1,574	(8.2)
Domestic	1,377	1,233	1,469	992	5,071	1,200	1,211	1,273	(13.4)	1,459	1,401	1,416	1,458	1,292	5,566	1,239	1,309	1,317	(9.7)
Brazil	325	961	392	405	2,083	303	257	259	(33.9)	258	325	351	371	412	1,458	303	257	259	0.5
Other activities & Elim.	(2)	(2)	(3)	(2)	(9)	(1)	(3)	(2)		(3)	(2)	(2)	(4)	(2)	(9)	(1)	(3)	(2)
CAPEX	607	874	795	1,508	3,784	599	655	752	(5.4)	718	605	860	781	1,482	3,728	599	655	752	4.7
Domestic	455	659	585	1,213	2,912	414	549	617	5.5	571	453	645	571	1,187	2,856	414	549	617	8.1
Brazil	152	215	210	295	872	185	106	135	(35.7)	147	152	215	210	295	872	185	106	135	(8.0)
EFCF	356	720	616	639	2,331	466	512	688	11.7
EFCF After Lease	208	549	380	397	1,534	195	336	462	21.6
NET DEBT (3)	28,583	28,328	27,891	27,668	27,668	26,745	25,971	25,469	(8.7)
NET DEBT After Lease (3)	23,143	22,818	22,465	21,893	21,893	21,711	21,095	20,741	(7.7)

(1) Excluding non-recurring items and change in consolidation area (Persidera out from Q1' 19, Inwit deconsolidated from Q2' 19); comparable base also excluding exchange rate fluctuations (2) Inwit accounted for using the equity method starting from Q2 '20 (restated accordingly from Q2 '19), hence INWIT's MSA implies that ca € 60m/quarter of depreciation and interest expenses on leasing assets and liabilities are recorded as OPEX instead. Impact on cash and on EBITDA AL is zero (3) Adjusted

Q3 '20 Financial and Operating Figures Investor Relations

Unaudited figures

BACK TO INDEX

2019 Comparable base

€m, IFRS 16 & After Lease view

			ORGANIC (1)			COMPARABLE BASE (2)
	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19
REVENUES	4,467	4,503	4,410	4,535	17,915	4,343	4,247	4,106		17,015
Domestic	3,498	3,547	3,435	3,539	14,019	3,499	3,549	3,435		14,028
o/w Wireline	2,534	2,586	2,452	2,552	10,124	2,535	2,588	2,449		10,123
o/w Mobile	1,122	1,102	1,123	1,130	4,477	1,122	1,101	1,124		4,477
Brazil	979	967	984	1,007	3,937	854	709	680		3,028
Other activities & Elim.	(10)	(11)	(9)	(11)	(41)	(10)	(11)	(9)		(41)
SERVICE REVENUES	4,081	4,120	4,042	3,996	16,239	3,962	3,876	3,752		15,380
Domestic	3,151	3,210	3,109	3,051	12,520	3,152	3,212	3,110		12,529
o/w Wireline	2,393	2,416	2,269	2,283	9,361	2,394	2,418	2,266		9,360
o/w Mobile	916	934	981	910	3,741	916	933	981		3,741
Brazil	940	922	942	956	3,760	820	675	651		2,892
Other activities & Elim.	(10)	(11)	(9)	(11)	(41)	(10)	(11)	(9)		(41)
EBITDA	1,970	2,062	2,117	1,998	8,147	1,917	1,882	1,916		7,541
Domestic	1,558	1,622	1,656	1,493	6,329	1,558	1,558	1,596		6,144
Brazil	414	442	464	506	1,826	361	327	322		1,405
Other activities & Elim.	(2)	(2)	(3)	(1)	(8)	(2)	(3)	(2)		(8)
EBITDA After Lease	1,724	1,765	1,825	1,702	7,015	1,683	1,670	1,714		6,681
Domestic	1,401	1,416	1,458	1,292	5,566	1,401	1,415	1,459		5,567
Brazil	325	351	371	412	1,458	284	258	258		1,122
Other activities & Elim.	(2)	(2)	(4)	(2)	(9)	(2)	(3)	(3)		(8)
CAPEX	605	860	781	1,482	3,728	586	807	718		3,526
Domestic	453	645	571	1,187	2,856	453	645	571		2,855
Brazil	152	215	210	295	872	133	162	147		671

(1) Excluding non-recurring items and change in consolidation area (2) Comparable base excluding non-recurring items, change in consolidation area and exchange rate fluctuations. FY'19 comparable base @ 2020 forecasted average exchange rate (5,7 REAIS/EUR vs 4.4 in FY'19, 4.9 in Q1'19, 5.4 in Q2'19 and 5.7 in Q3'19)

Q3 '20 Financial and Operating Figures Investor Relations

TIM Group Profit & Loss

	Q1 '19	H1 '19	9M '19	FY '19	Q1 '20	H1 '20	9M '20	Change YoY%
REVENUES	4,471	8,994	13,423	17,974	3,964	7,759	11,657	(13.2)
Other Income	46	766	850	933	40	90	121	(85.8)
TOTAL OPERATING REVENUES AND OTHER INCOME	4,517	9,760	14,273	18,907	4,004	7,849	11,778	(17.5)
Acquisition of goods and services	(1,595)	(3,198)	(4,746)	(6,463)	(1,454)	(2,840)	(4,433)	6.6
Employee benefits expenses	(740)	(1,502)	(2,179)	(3,077)	(715)	(1,372)	(1,946)	10.7
Other operating expenses	(309)	(871)	(1,160)	(1,625)	(272)	(502)	(681)	41.3
Internally generated assets and Others	73	202	311	409	172	263	400	28.6
EBITDA	1,946	4,391	6,499	8,151	1,735	3,398	5,118	(21.2)
EBITDA Margin	43.5%	48.8%	48.4%	45.3%	43.8%	43.8%	43.9%
Depreciation and amortization	(1,264)	(2,496)	(3,758)	(4,927)	(1,201)	(2,348)	(3,482)	7.3
Gains (losses) on disposals of non-current assets	1	(8)	(29)	(49)	(1)	(8)	(9)	69.0
Impairment reversals (losses) on non-current assets	-	-	-	-	-	-	-
EBIT	683	1,887	2,712	3,175	533	1,042	1,627	(40.0)
EBIT Margin	15.3%	21.0%	20.2%	17.7%	13.4%	13.4%	14.0%
Income (loss) equity invest. valued equity method (1)	(4)	(1)	(2)	0	441	450	460
Net Financial Income / (Expenses)	(383)	(754)	(1,119)	(1,436)	(301)	(603)	(909)	18.8
Profit (loss) before tax from continuing operations	296	1,132	1,591	1,739	673	889	1,178	(26.0)
Income tax expense	(109)	(392)	(498)	(513)	(82)	(166)	66
Profit (loss) from continuing operations	187	740	1,093	1,226	591	723	1,244	13.8
Discontinued operations/Non-current assets held for sale	-	-	-	16	-	-	-
PROFIT (LOSS)	187	740	1,093	1,242	591	723	1,244	13.8
Parent Company	165	551	852	916	560	678	1,178	38.3
Minorities	22	189	241	326	31	45	66	(72.6)

TIM Group Cash Flow & Net Debt

€m, IFRS 16 & After Lease view

	Q1 '19	H1 '19	9M '19	FY '19	Q1 '20	H1 '20	9M '20
EBITDA	1,946	4,391	6,499	8,151	1,735	3,398	5,118
CAPEX	(607)	(1,481)	(2,276)	(3,784)	(599)	(1,254)	(2,006)
o/w spectrum	-	-	-	-	-	-	-
CHANGE IN WORKING CAPITAL (1)	(649)	(1,091)	(1,432)	(560)	(348)	(599)	(738)
Change in net operating working capital	(633)	(1,146)	(1,290)	(549)	(229)	(53)	(60)
Change in inventories	64	73	9 0	129	(22)	6	(10)
Change in trade receivables and net amounts due from customers on construction contracts	(230)	(138)	(108)	-	258	329	401
Change in trade payables	(695)	(973)	(1,033)	(46)	(931)	(1,293)	(1,234)
Other changes in operating receivables/payables	228	(108)	(239)	(632)	466	905	783
Change in provisions for employee benefits	(13)	(214)	(243)	(246)	(8)	(435)	(534)
Change in operating provisions and other changes	(3)	269	101	235	(111)	(111)	(144)
OPERATING FREE CASH FLOW Reported	690	1,819	2,791	3,807	788	1,545	2,374
Licence	-	-	(18)	(18)	-	-	(110)
OPERATING FREE CASH FLOW net of Licence	690	1,819	2,809	3,825	788	1,545	2,484
Financial Expenses	(346)	(707)	(1,031)	(1,372)	(295)	(604)	(904)
Cash Taxes & Other	12	(36)	(86)	(138)	(27)	37	86
Net Cash Flow from discontinued operations	-	-	-	16	-	-	-
EQUITY FREE CASH FLOW	356	1,076	1,692	2,331	466	978	1,666
Dividends and change in Equity	(25)	(241)	(242)	(269)	(40)	(348)	(344)
Disposal and Financial investements	-	3	3	155	613	1,212	1,213
Licence	-	-	(18)	(18)	-	-	(110)
IFRS & IAS	(3,644)	(3,896)	(4,056)	(4,597)	(116)	(145)	(226)
NET CASH FLOW	(3,313)	(3,058)	(2,621)	(2,398)	923	1,697	2,199
EQUITY FREE CASH FLOW	356	1,076	1,692	2,331	466	978	1,666
Lease Impact	(148)	(319)	(555)	(797)	(271)	(447)	(673)
EQUITY FREE CASH FLOW AFTER LEASE (2)	208	757	1,137	1,534	195	531	993
NET DEBT (3)	28,583	28,328	27,891	27,668	26,745	25,971	25,469
Lease Impact	(5,440)	(5,510)	(5,426)	(5,775)	(5,034)	(4,876)	(4,728)
NET DEBT After Lease (3)	23,143	22,818	22,465	21,893	21,711	21,095	20,741

(1) See details in tab "Working Capital" (2) Excluding non-recurring items and FX EFCF AL would be € 1,257m in 9M '20 (vs. € 1,137m in 9M '19)

		TIM Group			Domestic			Brasil
	9M '19	9M '20	Δ abs	9M '19	9M '20	Δ abs	9M '19	9M '20	Δ abs
Operating WC & Other	(1,432)	(738)	694	(355)	(780)	(425)	(1,077)	42	1,119
License	-	-	-	-	-	-	-	-	-
License paid in the year	(18)	(110)	(92)	(18)	(110)	(92)	-	-	-
Non recurring items (not paid)	(300)	181	481	332	181	(151)	(632)	-	632
Recurring Operating WC	(1,114)	(809)	305	(669)	(851)	(182)	(445)	42	487
Inventory				95	(24)	(119)
Trade Receivables				(48)	145	193
Trade Payables				(785)	(670)	115
Other Operating Payables/Receivables & Funds				69	(302)	(371)
- o/w Litigations & Settlements				(3)	(117)	(114)
- o/w Payables vs. Personnel				127	16	(112)
- o/w Personnel Exit (Fornero Law)				(222)	(319)	(97)
- o/w VAT				504	451	(53)

- o/w Billing (1) (38) (67) (28)

- o/w Net Debts vs INPS (78) (58) 20

- o/w Deferred Costs & Revenues (106) (104) 2

TIM Group Balance Sheet

€m, IFRS 16 Unaudited figures

	Q1 '19	H1 '19	9M '19	FY '19	Q1 '20	H1 '20	9M '20
CURRENT ASSETS	9,280	8,253	8,798	14,108	9,513	9,611	9,036
Trade and miscellaneous receivables and other current assets	5,138	4,990	4,940	4,857	4,889	4,639	4,580
Cash and cash equivalents	2,103	1,700	2,147	3,138	3,265	3,603	2,858
Discontinued operations/assets held for sale	-	-	-	4,647	-	24	-
o/w of a financial nature	-	-	-	65	-	-	-
o/w of a non-financial nature	-	-	-	4,582	-	24	-
Securities other than investments, other financial receivables and other current financial assets	1,574	1,111	1,247	999	985	1,007	1,246
Inventories	325	316	299	260	282	256	272
Current income tax receivables	71	83	104	149	49	46	46
Current financial receivables arising from lease contracts	69	53	61	58	43	36	34
Other investments	-	-	-	-			-
NON-CURRENT ASSETS	60,304	60,859	60,675	55,996	58,482	56,946	55,819
Intangible assets	34,985	34,790	34,464	30,750	30,027	29,737	29,452
Goodwill	26,780	26,784	26,750	23,083	22,908	22,870	22,825
Intangible assets with a finite useful life	8,205	8,006	7,714	7,667	7,119	6,867	6,627
Tangible assets	14,086	14,089	13,995	14,011	13,287	12,986	12,800
Property, plant and equipment owned	14,086	14,089	13,995	14,011	13,287	12,986	12,800
Right of Use assets	5,735	5,803	5,693	5,494	5,276	5,022	4,879
Other assets	5,498	6,177	6,523	5,741	9,892	9,201	8,688
Miscellaneous receivables and other non-current assets	2,296	2,944	2,803	2,585	2,387	2,309	2,050
Non-current financial assets	1,885	2,090	2,637	2,151	3,116	2,969	2,519
o/w receivable for lease contracts	54	60	53	51	51	47	42
o/w other non-current financial assets	1,831	2,030	2,584	2,100	3,065	2,922	2,477
Deferred tax assets	1,253	1,077	1,019	942	937	896	1,080
Other investments	52	54	52	52	44	51	52
Investments in associates and joint ventures accounted for using the equity method	12	12	12	11	3,408	2,976	2,987
TOTAL ASSETS	69,584	69,112	69,473	70,104	67,995	66,557	64,855

BACK TO INDEX

TIM Group Balance Sheet

€m, IFRS 16 Unaudited figures

	Q1 '19	H1 '19	9M '19	FY '19	Q1 '20	H1 '20	9M '20
CURRENT LIABILITIES	12,489	10,214	10,778	11,928	10,818	10,534	10,380
Trade and miscellaneous payables and other current liabilities	6,840	6,647	6,459	7,218	6,573	6,108	5,908
Current financial liabilities	5,584	3,485	4,277	3,821	4,202	4,382	4,416
o/w liabilities for financing contracts and others	4,889	2,780	3,557	3,182	3,523	3,685	3,773
o/w liabilities for lease contracts	695	705	720	639	679	697	643
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	-	-	805	-	-	-
o/w of a financial nature	-	-	-	655	-	-	-
o/w of a non-financial nature	-	-	-	150	-	-	-
Current income tax payables	65	82	42	84	43	44	56
NON-CURRENT LIABILITIES	35,276	36,564	36,151	35,550	35,166	34,629	33,002
Non-current financial liabilities	29,340	30,493	30,262	30,181	29,776	29,187	27,873
o/w liabilities for financing contracts and others	24,586	25,679	25,546	25,605	25,396	24,984	23,766
o/w liabilities for lease contracts	4,754	4,814	4,716	4,576	4,380	4,203	4,107
Miscellaneous payables and other non-current liabilities	3,294	3,348	3,156	3,214	3,104	3,363	3,226
Employee benefits	1,545	1,417	1,379	1,182	1,179	916	830
Provisions	861	993	971	725	688	753	750
Deferred tax liabilities	236	313	383	248	419	410	323
TOTAL LIABILITIES	47,765	46,778	46,929	47,478	45,984	45,163	43,382
EQUITY	21,819	22,334	22,544	22,626	22,011	21,394	21,473
Equity attributable to equity owners of the Parent	19,612	19,949	20,222	20,280	20,623	20,081	20,227
Equity attributable to Minority Interests	2,207	2,385	2,322	2,346	1,388	1,313	1,246
TOTAL LIABILITIES & EQUITY	69,584	69,112	69,473	70,104	67,995	66,557	64,855

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Domestic Results

€m, IFRS 16 & After Lease view

					REPORTED									ORGANIC (1)
	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %	Q3 '19 comparable base	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %
REVENUES	3,502	3,567	3,454	3,555	14,078	3,113	3,146	3,213	(7.0)	3,435	3,498	3,547	3,435	3,539	14,019	3,128	3,168	3,214	(6.4)
Service Revenues	3,155	3,230	3,128	3,072	12,585	2,861	2,897	2,855	(8.7)	3,110	3,151	3,210	3,109	3,051	12,520	2,876	2,919	2,856	(8.2)
Wireline Services	2,393	2,416	2,269	2,283	9,361	2,153	2,209	2,144	(5.5)	2,266	2,393	2,416	2,269	2,283	9,361	2,153	2,213	2,145	(5.4)
Retail	1,630	1,609	1,510	1,515	6,264	1,419	1,404	1,386	(8.2)	1,510	1,630	1,609	1,510	1,515	6,264	1,420	1,408	1,387	(8.2)
National Wholesale	497	560	515	506	2,078	500	567	524	1.7	515	497	560	515	506	2,078	500	567	524	1.7
International Wholesale	238	231	228	237	934	218	224	221	(3.1)	225	238	231	228	237	934	218	224	221	(1.8)
Subs., adj. and other	28	16	17	25	86	15	14	14		17	29	16	16	25	86	15	13	14
Mobile Services	916	943	993	923	3,775	856	824	846	(14.7)	981	916	934	981	910	3,741	870	842	846	(13.7)
Retail	832	830	840	791	3,292	747	734	706	(15.9)	840	831	830	840	791	3,292	762	752	706	(15.9)
Wholesale and Other	84	113	153	133	483	109	89	140	(8.5)	141	85	104	141	120	449	109	89	140	(0.7)
Elimination & Other (2)	(154)	(129)	(134)	(134)	(551)	(148)	(135)	(135)	0.7	(137)	(158)	(140)	(141)	(142)	(582)	(147)	(136)	(135)	(1.5)
Handsets	347	337	326	483	1,493	252	249	358	9.8	325	347	337	326	488	1,499	252	249	358	10.2
OPEX	1,968	2,172	1,829	2,401	8,370	1,767	1,808	1,816	(0.7)	1,839	1,940	1,925	1,779	2,046	7,690	1,743	1,732	1,773	(3.6)
EBITDA (3)	1,534	1,395	1,625	1,154	5,708	1,346	1,338	1,397	(14.0)	1,596	1,558	1,622	1,656	1,493	6,329	1,385	1,436	1,441	(9.7)
EBITDA Margin	43.8%	39.1%	47.0%	32.5%	40.5%	43.2%	42.5%	43.5%	(3.5 p.p.)	46.5%	44.5%	45.7%	48.2%	42.2%	45.1%	44.3%	45.3%	44.8%	(1.6 p.p.)
EBITDA After Lease	1,377	1,233	1,469	992	5,071	1,200	1,211	1,273	(13.4)	1,459	1,401	1,416	1,458	1,292	5,566	1,239	1,309	1,317	(9.7)
EBITDA AL Margin	39.3%	34.6%	42.5%	27.9%	36.0%	38.5%	38.5%	39.6%	(2.9 p.p.)	42.5%	40.1%	39.9%	42.4%	36.5%	39.7%	39.6%	41.3%	41.0%	(1.5 p.p.)
CAPEX	455	659	585	1,213	2,912	414	549	617	5.5	571	453	645	571	1,187	2,856	414	549	617	8.1
% on revenues	13.0%	18.5%	16.9%	34.1%	20.7%	13.3%	17.5%	19.2%	2.3 p.p.	16.6%	13.0%	18.2%	16.6%	33.5%	20.4%	13.2%	17.3%	19.2%	2.6 p.p.
Headcount EoP	48,114	47,891	46,502	45,496	45,496	45,380	45,473	43,069	(7.4)

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) Includes revenues from Persidera, whose sale was finalized on December 2nd, 2019 (3) Inwit accounted for using the equity method starting from Q2 '20 (restated accordingly from Q2 '19), hence INWIT's MSA implies that ca € 60m/quarter of depreciation and interest expenses on leasing assets and liabilities are recorded as OPEX instead. Impact on cash and on EBITDA AL is zero

Q3 '20 Financial and Operating Figures Investor Relations

Domestic Wireline

€m, IFRS 16

		REPORTED												ORGANIC (1)
	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %	Q3 '19 comparable base	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %
WIRELINE REVENUES	2,534	2,586	2,452	2,552	10,124	2,288	2,361	2,336	(4.7)	2,449	2,534	2,586	2,452	2,552	10,124	2,289	2,365	2,337	(4.6)
Wireline Service Revenues	2,393	2,416	2,269	2,283	9,361	2,153	2,209	2,144	(5.5)	2,266	2,393	2,416	2,269	2,283	9,361	2,153	2,213	2,145	(5.4)
Retail Services o/w Broadband and content o/w ICT Services	1,630 645 192	1,609 647 215	1,510 590 211	1,515 588 245	6,264 2,470 862	1,419 584 207	1,404 575 228	1,386 569 249	(8.2) (3.7) 18.2	1,510 590 211	1,630 645 192	1,609 647 215	1,510 590 211	1,515 588 245	6,264 2,470 862	1,420 584 207	1,408 575 228	1,387 569 249	(8.2) (3.7) 18.2
National Wholesale International Wholesale Subsidiaries, adj. and other	497 238 28	560 231 16	515 228 17	506 237 25	2,078 934 86	500 218 15	567 224 14	524 221 14	1.7 (3.1) (18.8)	515 225 17	497 238 2 9	560 231 16	515 228 16	506 237 2 5	2,078 934 8 6	500 218 15	567 224 13	524 221 14	1.7 (1.8) (18.8)
Equipments	141	170	183	269	763	135	152	192	5.0	183	141	170	183	269	763	135	152	192	5.0
Retail lines ('000) Churn rate % Broadband (2) Consumer Business										9,381 4.4 7,532 6,201 1,331	9,931 5.6 7,354 6,001 1,353	9,599 6.0 7,414 6,075 1,340	9,381 4.4 7,532 6,201 1,331	9,166 4.9 7,592 6,282 1,310	9,166 20.9 7,592 6,282 1,310	8,981 4.7 7,567 6,298 1,269	8,921 3.0 7,523 6,282 1,241	8,761 4.0 7,519 6,304 1,214	(6.6) (0.4 p.p.) (0.2) 1.7 (8.8)
UBB (3) Wholesale lines ('000)										3,567 8,050	3,400 8,093	3,498 8,079	3,567 8,050	3,670 8,051	3,670 8,051	3,789 8,003	4,008 8,083	4,127 8,053	15.8 0.0
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB										3,710 223 1,041 3,076	4,149 228 1,100 2,616	3,900 230 1,081 2,869	3,710 223 1,041 3,076	3,525 215 1,001 3,309	3,525 215 1,001 3,309	3,298 203 952 3,549	3,128 198 895 3,862	2,953 192 846 4,063	(20.4) (13.9) (18.8) 32.1
ARPU Consumer										33.9	35.6	35.7	33.9	34.2	34.9	33.8	33.4	31.9	(5.9)
ARPU Broadband										26.3	29.0	29.6	26.3	25.9	27.7	25.6	25.4	25.3	(3.9)

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) 18k implied net adds in Q3 net of -23k clean up in CB (3) Including Fixed Wireless Accesses (FWA) from Q4'19; FWA not material in previous quarters

Q3 '20 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 International Wholesale Subsidiaries, adj. and other	Retail service revenues: consumer + business Data services (xDSL, FTTx), TIM Vision and other contents, TIM Game Cloud, Security, IT and other B2B services Revenues from OLOs, regulated and not regulated (organization view) TIM Sparkle Group revenues Intercompany adjustment, elimination and national Subsidiaries (Telsy, TI Trust, Olivetti)
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 (from Jan. 2019) 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)
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
Consumer	Total retail consumer service revenues divided by average active consumer lines (€/line/month)
Broadband	Total broadband revenues (Consumer+Business) divided by average active broadband customers (€/line/month)

Domestic Mobile

					REPORTED									ORGANIC (1)
	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %	Q3 '19 comparable base	Q1 '19	Q2 '19	Q3 '19	Q4 '19	FY '19	Q1 '20	Q2 '20	Q3 '20	Change YoY %
MOBILE REVENUES	1,122	1,111	1,135	1,143	4,511	976	921	1,012	(10.8)	1,124	1,122	1,102	1,123	1,130	4,477	990	939	1,012	(10.0)
Mobile Service Revenues	916	943	993	923	3,775	856	824	846	(14.7)	981	916	934	981	910	3,741	870	842	846	(13.7)
Retail Services o/w Incoming Wholesale and Other	832 67 84	830 67 113	840 64 153	791 72 133	3,292 270 483	747 66 109	734 75 89	706 61 140	(15.9) (3.7) (8.5)	840 6 4 141	831 6 7 8 5	830 6 7 104	840 6 4 141	791 72 120	3,292 270 449	762 6 6 109	752 75 8 9	706 6 1 140	(15.9) (3.7) (0.7)
Handsets and Handsets Bundle	206	168	142	220	736	120	9 7	166	16.4	143	206	168	142	220	736	120	9 7	166	16.0
Total number of lines ('000) Churn rate % Human										31,254 5.4 21,413	31,748 5.2 22,256	31,662 4.3 21,956	31,254 5.4 21,413	30,895 5.5 21,003	30,895 20.4 21,003	30,522 5.3 20,424	30,502 4.0 20,155	30,165 5.2 19,894	(3.5) (0.2 p.p.) (7.1)
Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users										9,841 27,837 17,996 12,951 10,957	9,492 28,068 18,576 13,125 10,718	9,706 28,051 18,345 13,124 10,922	9,841 27,837 17,996 12,951 10,957	9,892 27,495 17,602 12,823 11,043	9,892 27,495 17,602 12,823 11,043	10,098 27,227 17,128 12,673 11,111	10,347 27,563 17,215 12,875 11,331	10,272 27,375 17,103 12,920 11,659	4.4 (1.7) (5.0) (0.2) 6.4
Usage Data (GB/users/month)										7.0	5.1	5.9	7.0	7.0	6.3	8.2	9.4	9.9	40.6
ARPU Reported										8.9	8.7	8.7	8.9	8.5	8.7	8.3	8.2	7.8	(12.3)
ARPU Human										12.9	12.4	12.5	12.9	12.4	12.6	12.3	12.4	11.8	(8.5)

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	Retail service revenues, consumer and business including voice, messaging, browsing and content
o/w Incoming	Revenues for voice traffic terminated on TIM mobile customers including visitors
Wholesale and Other	Inwit revenues, colocation on mobile sites, MVNOs and visitors
Handsets and Handsets Bundle	Mobile handsets sales and handsets bundles
Total number of lines	Total mobile customer base, human and not human ('000)
Churn rate %	Percentage of line lost on average nr of lines in the reported period
Human	Total nr. of human lines
Not Human (M2M)	Total nr. of not human lines, including machine to machine and data-only SIMs (eg. for tablets)
Calling lines	Nr. of active lines (calling at least once within the last month of the reported quarter)
Human Calling	Nr. of human active lines (calling at least once within the last month of the reported quarter)
Broadband Users	Mobile customers using data services
LTE Users	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)

TIM Brasil

Reported, R\$m, IFRS 16

Reported & Organic Reconciliation

			Q3 '19				Q3 '20
			Non Organic elements		Organic
	Reported	Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	4,429	(16)	(307)	-	4,106	3,898	1	3,899
Domestic	3,454	(16)	(3)	-	3,435	3,213	1	3,214
Brazil	984	-	(304)	-	680	691	-	691
Other Activities & Eliminations	(9)	-	-	-	(9)	(6)	-	(6)
SERVICE REVENUES	4,061	(15)	(294)	-	3,752	3,510	1	3,511
Domestic	3,128	(15)	(3)	-	3,110	2,855	1	2,856
Brazil	942	-	(291)	-	651	661	-	661
Other Activities & Eliminations	(9)	-		-	(9)	(6)	-	(6)
EBITDA	2,108	(81)	(169)	58	1,916	1,720	44	1,764
Domestic	1,625	(81)	-	52	1,596	1,397	44	1,441
Brazil	485	-	(169)	6	322	325	-	325
Other Activities & Eliminations	(2)	-	-	-	(2)	(2)	-	(2)
EBITDA After Lease	1,858	(62)	(140)	58	1,714	1,530	44	1,574
Domestic	1,469	(62)	-	52	1,459	1,273	44	1,317
Brazil	392	-	(140)	6	258	259	-	259
Other Activities & Eliminations	(3)		-	-	(3)	(2)	-	(2)
EBIT	825	(53)	(71)	58	759	585	44	629
Domestic	665	(53)	-	52	664	479	44	523
Brazil	163	-	(71)	6	98	108	-	108
Other Activities & Eliminations	(3)	-	-	-	(3)	(2)	-	(2)