Telecom Italia Rsp

Investor Presentation • Nov 9, 2023

& DELAYERING DELIVERING 09 NOVEMBER 2023 Q3 '23

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Disclaimer

different business lines and the alobal to secults and other aspects of the activities and situation relating to the TM Group. Such forward looking This presentation contains that constitute forward looking statements regaring the intent, belief or current in the statements are not quarantees of future performance and incertinities, and actual results may differ materially from those projected or implied in the forward-looking statements as a result of various factors.

riteria and the consolidation methods on the preparation of the Consolidated Financial Statements of December 31, 2022, to which reference The financial results of the TM Group for Q3 hos been prepared in compliance with the accounting standards, the recognition and measurement con be made for a more extensive description, except for the standards issued by IASB and adopted starting from 1 Jonuary 2023.

Please note that the financial results for Q3 '23 and 9M '23 of the TIM Group are unaudited.

Alternative Performance Measures

The TM Goup, in addition to the convertional performance measures established by IFRS, uses certain atternative performance measures for the purposes of enabling a better understanding of the financial position of the TM Group. In particular, such altenative performance measures include: EBTDA, EBT, Organic change on reverse, EBTDA and EBIT; BBTDA margin and EBIT; BBTDA margin and EBIT nargin Mareover, following the adoption of FRS 16, the TM Group uses the fellowing additional allernative performance indicators: EBITDA-AL''), net financial debt (carrying and adjusted amount), Equity Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licences), Adjusted Net Financial Debt After Lease and Equity Free Cash Alternative performance measures are unaudited.

TIM Group

Group and Domestic results fully on track vs FY guidance Organic data, YoY trend (1)

Service Revenues
	+1.7%	+2.1%		LSD growth
o/w Domestic	-0.6%	-1.3%		broadly stable
EBITDA	+6.5%	+5.3%	domestic Positive drivers	MSD growth	9M Group and Domestic results fully support FY targets
o/w Domestic	+3.6%	+0.5%		flat to LSD growth
EBITDA AL	+8.6%	+5.0%		LMSD growth	Positive drivers
					expected also in Q4
Drivers	delivered		in progress
Activation fees drag	-
Selective repricing	+		++
CB stabilization	+		+		FY guidance confirmed
'23 wholesale tariffs	+		+
Energy-Labour comps	+		+++

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation. Group figures @ overage exchange-rate 5.43 R\$/€ (2) LSD = Low-Single Digit MSD = Mid-Single Digit LMSD = Low-to-Mid Single Digit

4

09 November 2023

TIM Domestic

Domestic growth trajectory confirmed on all metrics Organic data, YoY trend (1)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area

TIM Entities delivering results (1/3)

Q3 '23 - Delivering & Delayering (1) Targeted 7.3m CO mobile lines and 4.7m CO fixed lines (2) Of which ~€ 7m in '24 from SMB (price ups on 0.4m fixed lines and 0.3m mobile lines launched/announced in '23) (3) Source: AGCOM, data as of Jun. '23

09 November 2023

TIM Entities delivering results (2/3)

	Enterprise IM	NetCo
Revenues Services	+4.8% YoY	+5.8% YoY
	+4.2% YoY	-1.1% YoY
	concentrated on 41 Customers YTD net of SPC Cloud phase out ~€ 1.8bn worth of pipeline marketed NSH services ।	confirmed by YE excluding Sardinia acceleration Italia 1 Giga Progressive NRRP: 30%
Q3 achievements	- Total value NSH neqotiations equal to € 0.4bn, of which 80% monthly tees and mobile services. Cloud revenues +24% YoY · Positive revenue growth, faster pace vs. Q2 driven by fixed The first 10 contracts signed generate ~80% of 1st year National Strategic Hub beyond expectations	grant advance payment unlocked, € 0.7bn cash-in FTTH coverage: 8.7m technical units connected (36% of tot.) achieve YE target (2) Service revenues trend YoY broadly stable 5G Backhauling No risk of penalties Expected to
		achieve YE target(2) 5G Coverage Expected to
Main KPIs	9M '23 Service Revenues +8% +9% +9% YoY -3% -3% A Connectivity Security Other IT Cloud lol	FTTH coverage (technical units, million) (3) Q1 '23 33% 15.6m accesses (1) 8.0 Market share >70% FTTx 79% FY '22 32% .8
	+1.3pp -2.6pp +0.2pp +1.2pp -0.1pp A YoY Revenue mix weight 30% 42% 23% 2% 3%	95% of active lines ~61% >100Mbps FTIx coverage 36% 8.7 03 34% 8.3 Q2

(1) Fired occesses including Fiber.cop (1) NRR miles covered with fiber ("talia 1 Gig"), 35% of moble sites connected ("5G Backhauling"), 10% of areas covered with 5G ("5G Coverage") (3) Overall FTTH coverage, including NRRP and "Eurosud"

2023) (1) Net Non-Recurring Items (NR) (2) EBITDA net of NRI +12.1% YoY (3) OPEX +3.7% YoY in Q3 /23 vs +5.2% PCA LTM (source: IBGE, 30th Sep.

Q3 '23 - Delivering & Delayering 09 November 2023

		2022	2023	2024		~€ 0.2bn additional savings in Q3 '23
	o/w cash cost / CAPEX extra-savings TARGET SAVINGS (€bn) (1) o/w OPEX savings (2)	03 0.3	1 1.1 0.4 0.7	1.5 1.0 0.5		77% of incremental FY target reached € 0.1bn cash cost /CAPEX extra savings € 0.1bn OPEX savings
		Q3 highlights				9M key contributors,
Digital		eSIM, enhanced activation process	New digital CX, activation process based on client digital ID		Real Estate	Closure of 200k sqm by leveraging 'work from home'
break-through	Certified email and digitization: । -	58% customer paper mails shifted >1 million digital invoices in Q3	to digital (3)		Energy	Efficiencies, ~10% lower consumption
Customer care	live in Q1 '24 (4)		thanks to lower human volumes, make vs buy and digitalization Generative Al & Voicebot, set-up of future-proof platform, go- Customer Care, on track to achieve 10% cost reduction YoY		Rightsizing & talents uplift	Insourcing, ~0.6k HCs already re-skilled Voluntary exits, ~0.4k HCs (~80% of Hirings, ~0.4k HCs already recruited Hourly reduction, average impact Early retirements, ~1.4k HCs equivalent to 4.2k FTEs target achieved)
Decommissioning update	I -	~7.5K already dismantled (~50% of YE target) ~2.5K to be converted into Digital Booths Public Payphones, on track with plan				Approval received by AGCOM to shut down 1.3k COs by '25 Copper legacy, on track with plan (5)

-1 C == / + . 17// -• -. -ﻢ : 4:40 ﻟﻪ C N Th Transformation plan

TIM Domestic

D

09 November 2023

Organic data, IFRS 16, € m Domestic OPEX
	Q3 '23	YoY trend	Weight on OPEX trend
TOT. OPEX	1,855	+24 (+1.3%)		Variable costs +5% YoY in Q3
(cash view)		+11 (+0.6%)		Interconnection down YoY for lower volumes and cost rationalization ।
Interconnection	280	-3%	0.5pp ↓	Equipment reduction due to lower volumes sold l
1 1 ニュニコニニニニニニ Equipment	l li 157	-13%	1 ============================================================================================================================================================================== -1.3pp ↓ 11 11	Other CoGS increase related to ICT revenue dynamic and other goods sold -
드로드로드로드로 Other CoGS 11	------ 275	+24%	ニニニニニ 2.9pp ↑ 11 11	(related to higher multimedia revenues) and Commissioning (only for Commercial costs +9% YoY mainly driven by higher Content & Vas
ニニニニニニニニ Commercial	----- 317	+9%	ニニニニニ +1.4pp ↑ 11	accounting effects, down in cash terms)
ニニニニニニニニニ Industrial	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ 314	-4%	ニニニニニ -0.7pp ↓ 11 -	Industrial costs -4% YoY, with lower network maintenance costs. Energy costs -9% YoY due to lower energy prices and volume
l l l l G&A and IT 그 프로그램은 그 11 11	ਰੇ।	-8%	============================================================================================================================================================================== -0.4pp ↓ 11 11	efficiencies despite no fiscal benefits in Q3 '23
ニニニニニニニニニ Labour (1) 11 11	---- 406	-5%	ニニニニニ -1.2pp ↓ 11 1	G&A and IT -8% YoY for lower IT costs (mainly for lower managed services revenues) and professional services
= ニニニニニニ Other (2)	============================================================================================================================================================================== 15	n.m.	ニニニニニ ← +1.1pp 1 1 1	Labour -5% YoY driven by solidarity and lower FTEs

TIM Group

Domestic CAPEX in line with plan. Net Debt increase due to negative EqFCF

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

(1) Group CAPEX net of exchange rate fluctuations (average exchange-rate 5.43 R\$/€); comparable base for Q3 '22

09 November 2023

Refinancing activity - Completed for 2023, € 4.1bn raised in 9M o/w € 2.5bn in Q3 TIM Group

(1) Includes € 0.7bn repurchose arreements (noming 9 months - (2) € 24.7bn is the nominal amount of outstanding ML term debt. By adding the balance of IAS adjustments and reverse financial liabilities (€ 1.2bn) and current financial liabilities (€ 1.2bn), gross debt figure of € 27.0bn is reconciled with reported number outstanding bonds (nominal amount) denominated in USD and GBP and fully hedged

09 November 2023

(1) Excluding Sparkle and conditional items

09 November 2023 Q3 '23 - Delivering & Delayering

€ 18.8bn

€ 17.9bn

€ 17.0bn

€ 15.8bn

Base EV (1)

NetCo

NetCo Disposal - Summary of financial terms

Over € 14bn deleverage, better vs. CMD target on a like-for-like basis, despite worsened macro conditions

(2) Benefit of Liability Management Exercise (3) Including Fiber Cop minorities (€ 4.1bn), debt-like items and benefit of Liability Management Execcise (1) Up to € 2.5bn Earn-Out within 30 months from closing subject to Open Fiber transaction and regulatory relief on prices

09 November 2023

(1) Consensus Swisscom, Telenor, Telia, T-Mobile, Vodafone

09 November 2023

Agreement
ServiceCo/NetCo - Master Service /

MSA - Expected positive impact vs CMD plan, minimum guarantees in terms of fees or volumes not contemplated (0)

	Most
	on non-discriminatory basis (2) favoured client			Applicable for the benefit of TIM in respect of all services rendered by NetCo			Applicable for the benefit of NetCo in respect of Data Center and IT Mobile services rendered by TIM
MSA	Exclusivity			Preferred Supplier regime applied for B2B Services (instead of exclusivity) Different exclusivity terms and duration for each service
conditions general	Business model	on FTTC to	FTTH migration	NetCo as a "wholesale-only" operator, selling Access and B2B(3) services only to OAOs			TIM as a "retail" operator, reselling services purchased from NetCo only to Retail customers. No commitments
	Duration			■ 15y + 15y, unless otherwise provided for specific services in the MSA
		ACCESS services	services 323	P2P	Colocation	Legacy bandwidth & interconnection
MSA	NetCo to TIM	NETWORK services		Engineering	Delivery	Assurance		penalties (4) SLA/KP/ &
structure		REAL ESTATE services			ENERGY services
	TIM to NetCo	services IM	Center Data	Mobile IT	IT Corporate Network	IT BSS	IP Bandwidth	penalties (4) SLA/KPI &

sustainoble and consistent or below Service of best possible price on products and services on a non-discrimination bass (1) TIM only grants the ocquistion of a minimum quantity of certain engineering services. However, bosed on the Business Plan such minimum quantity is (3) B2B Services include P2P, Interconnection, Colocation and Legacy Bandwidth (4) Applied to all services

Q3 '23 - Delivering & Delayering 09 November 2023

Preliminary financials, € billion

(1) Sparkle not included. 23 financials based on 23-25 plan, not considering 9M 23 actual results. Forward looking projections do not constitute guidance. ServiceCo'24-'26 guidance to be provided at Investor Day in March '24 (2) Including TIM Olivetti Retail

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09 November 2023

Q3 '23 - Delivering & Delayering

~4% on revenues

~0.1bn

0.1bn

〜1bn

Financials for 2023e

	TDA EBI and Revenues Domestic growth trajectory confirmed, 2nd consecutive quarter of positive
	Transformation Plan execution on track with FY target
Delivering	CONFIRMED 9M performance + positive drivers expected in Q4 → EY GUIDANCE
	€ 0.7bn partial anticipation of NRRP funds to be cashed-in by YE, refinancing activities completed for '23
	Neutral Equity FCF in FY, including NRRP anticipation
	Closing in summer '24
	ServiceCo Investor Day in March '24
	Over € 14 billion deleverage, better vs. '22 CMD target on a like-for-like basis, despite worsened macro conditions
Delayering	Expected positive impact from MSA vs CMD plan, minimum guarantees in terms of fees or volumes not contemplated ﮧ
	ServiceCo with sufficient liquidity to cover upcoming maturities until '29 ﮧ
	next ServiceCo fully sustainable with potential rating upside from day one, EBITDA-Capex to improve over the few years on the back of improved EBITDA and lower Capex ﮧ

TIM Group

	Q3 '23	YoY trend	vs. Q2 '23	vs. Q3 '22	Q3 highlights
Revenues	4,107	+3.7%	+0.9pp T	+2.6pp T
o/w Domestic	2,978	+2.2%	+1.5pp T	+7.5pp ↑	Continued growth at Group level both on
Service Revenues	3,771	+1.7%	-0.1pp ↓	-1.3pp ↓	Domestic: 2nd consecutive quarter of Revenues and EBITDA
o/w Domestic	2,675	-0.6%	+0.4pp T	+2.9pp T	Domestic services YoY trend improved vs Q2, on Revenues and EBITDA growth
EBITDA	1,687	+6.5%	+0.9pp T	+13.0pp T	Accelerated EBITDA growth YoY both at Group track towards stabilization
o/w Domestic	1,123	+3.6%	+3.1pp T	+19.8pp T	and Domestic level
EBITDA AL	1,420	+8.6%	+3.1pp ↑	+19.8pp T
CAPEX (2)	ਰੋਹ ਦ	+8.5%			CAPEX in line with plan. Group +72m YoY, o/w
o/w Domestic	728	+10.3%			+68m Domestic driven by a push on FTTH
EFCF AL	-274	-23			EFCF AL negative mainly for working capital,
Net Debt AL (3)		21,184 (+369 in Q3)			higher financial expenses & lower dividends from Inwit. Net Debt AL increasing 0.4bn QoQ

Key financials

TIM Group

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ average exchange-rate 5.43 RS/€ (2) Net of licences (3) Adjusted Net Debt

TIM Domestic

Fixed - 2nd consecutive quarter of FSR growth YoY, higher ARPU, churn contained

Q3 '23 - Delivering & Delayering 09 November 2023

(1) Including ICT revenues generated by TIM Digital Companies (2) Including FiberCop revenues (3) Source: AGCOM

Mobile - MSR trend improved despite still affected by MTR reduction and lower CB YoY MNPs under control higher ARPU churn contained TIM Domestic

ੱਚ 5 ਕੀਪੈਟੀ ਦੌਰੀ ਇੱਕ ਅੰਧਾਇਕ ਸੀ। ਹੈ,				ﮐﮯ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍﯾﮏ ﺍ
rganic figures		YoY trend vs. Q2	"23	Highlights	ARPU Consumer - Human Calling net of MTR discontinuity
Mobile revenues	872	-4.5%	+3.2pp ↑		€/month
Equipment	ਰੇ।	-17.9%	+10.8pp ↑	lower consumer volumes YoY	YoY 1.5% -0.8% -0.6% 0.3% 0.0%
Services	781	-2.6%	+1.6pp ↑	MTR drag -1.5pp YoY
o/w retail	630	-2.2%	1 +2.1pp	lower CB, ARPU affected by MTR drag	11.3 11.0 10.9 11.0 11.1
o/w wholesale & other	151	-4.3%	-0.9pp	higher VISE, lower wholesale & other (incl. MVNO)
					03 Q3 '22 Q4 Q1 '23 Q2
Market MNP reduced, TIM best performer among MNOs				Net adds	Churn
		TIM _ Op.1 _ Op.2 _ Op.3		-- Total lines -- o/w human k lines	A YoY flat -0 2nn -0 1nn monthly average, %

09 November 2023

TIM Group

P&L - From EBITDA to Net Income

Reported data, €m

(1) Non-Recurring Items include provisions for personnel (2021-26 layoffs ex art.4 "Fornero" law), claims and litigation

09 November 2023

Liquidity margin - IFRS 16 view TIM Group

Cost of debt ~5.1%*, +0.2pp QoQ and +0.9pp YoY

(1) Includes €0.7bn repurchase agreements (noming 9 months (2) € 30.1bn is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 1.2bn), gross debt figure of € 32.5bn is reconciled with reported number

09 November 2023

Gross Debt - IFRS 16 view Well diversified and hedged debt TIM Group

LIFE

	adjusted NEW	value Folle	accounting INTF
GROSS DEBT
anks & EIB Sonds	18,620 7,881	149	7,881 18,769
Derivatives	-12	310	298
eases and long rent Other (1)	5,421 541		5,421 541
TOTAL	32,451	459	32,910
FINANCIAL ASSETS
iquidity position	4,869		4.869
)ther	1,244	326	1,570
o/w derivatives	902	326	1,228
o/w active leases	267		267
o/w other Credit	75		75
TOTAL	6,113	326	6,439
NET FINANCIAL DEBT	26,338	133	26,471

(1) Includes debts due to other lenders related to: Factor (€ 129m), Brazil 5G (€ 185m) and other (€ 37m) (2) Gross debt adjusted

1

09 November 2023

A YOY 2022 After Lease 21,184 Net Debt 20.100 +1,084 9M '23 9M '22 4 (5,404) (5,154) +250 Lease impact 26,338 Net Debt 25,504 9M '23 9M '22 +834 1 & Change Dividends in Equity 164 +120 44 Cash Taxes & Other (1) 700 (2,634) 3.334 +1.169 YTD +974 YTD +2.527 +3,317 1,257 Financial Expenses 1.028 +229 1,147 (2.645) (425) (1,147) Operating FCF ex. licence (1,089) (58) Op.FCF ex. Licence CAPEX ex. licence ΔWC & Others 25,364 Net Debt FY '22 22.187 +3.177 FY '21 5,349 impact 4.614 Lease +735 After Lease 20.015 Net Debt FY '21 17.573 +2.442 FY '22

+1,741m, other financial investments +3,227m (olw Domestic +1,805m and 5G Brazil 412m) , FRS 16 +728m, cash taxes and other -200m (1) 9M 13: financial investments +74m, IFRS 16 +474m, cash toxes and other +128m. 9M 12: Daphne 3 disposd -1,184m, Oi acquisition

09 November 2023

Q3 '23 - Delivering & Delayering

1

Net debt - Adjusted TIM Group

€ m; (-) = Cash generated, (+) = Cash absorbed, excluding call-outs

FRITDA

ESG - Q3 findings TIM Group

2030

-47% 100%

2040 2030 2025

≥29%

(1) Scope 3 cat.1, 2 and 11, 2019 baseline (2) Women managers, weighted average between Domestic and Brazil transpectively for '23-25) (3) Baseline 2021 (4) Average revenues materials and assets plus waste recycling per kg of waste produced (5) Old target excluding cloud service revenues (6) PEC, SPID, ature (active services)

09 November 2023 Q3 '23 - Delivering & Delayering

2025

+30% CAGR 23-25 +21% CAGR 23-25

290%

≥ 78%

48%

2€/kg

270%

The new TIM - Domestic perimeter

		Service Co		Sparkle	NetCo
		TIM Consumer	TIM Enterprise	Wholesale	Wholesale
Commercial	Brands and legal entities	== TIM xkena == TV	ENTERPRISE	- SPARKLE	== Fiber Cop
& Legal	Target markets	Consumer + SMB	Large Corp. & PA	International	National
	Secondary & Cabinets				Ducts / mini-ducts
	Primary	Selected fibers IRU (1)	Selected fibers IRU (2)		and fibers
Network Access	Access Electronics & Central Office HW				Distr. Frame/DSLAMs / OLT
	ms Central Offices spaces & Ancillary syste		Data Centers
	Real Estate	Selected offices & shops			Offices
	Junction and Backbone Fibers	Selected fibers IRU (3)	Selected fibers IRU (3)
Backbone	Backbone/Transport HW & Platforms			submarine systems l errestrial and
DC /	Service Platforms	Consumer Platforms	Enterprise Platforms		Wholesale Platforms
Platforms	Data Centers			Colocation/Landing Platforms
	Mobile Network (4)		Full MVNO-like services
Mobile	Mobile Service Platforms (4)
	Frequencies				28 GHz

(1) For mobile backhauling (2) Preserve Servicetion/ competitiveness for enterprise segments (3) May guarantee ServiceCo competitiveness (4) Minimum fiber backbone required to offer Enterprise most important products/services with autonomy

Q3 '23 - Delivering & Delayering

32

09 November 2023

Slide from "FY '22 Preliminary Results and 2023-'25 Plan" presentation

Guidance 2023-'25 TIM Group

Organic figures, IFRS 16 / After Lease, growth rates and €bn figures (1)

Over-delivery in 2022, positive acceleration also in '23-'25 despite worsening macro scenario

Group	2022A	2023	2022-25	Service Revenues
Service revenues	+1.3%	o/w broadly stable Domestic LSD growth	LSD growth CAGR	Old 22-24 Plan New 23-25 Plan
EBITDA	-14.3% Domestic -6.7%	flat to LSD growth MSD growth Domestic 0/W	MSD growth CAGR	FY '21 FY '22 FY '23 FY '24 FY '25
EBITDA After Lease	-10.6%	LMSD growth	MSD growth CAGR	EBITDA AL
net of licences CAPEX	o/w 3.1bn Domestic 4bn	o/w 3.1bn Domestic 4bn	o/w 3.1bn Domestic 4bn/year on avg.	Old 22-24 Plan New 23-25 Plan
After After Lease	0	cumulative '23-'25 slightly positive		FY '21 FY '22 FY '23 FY '24 FY '25

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

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

Further questions

please contact the IR team

(((2)

| | Upcoming financial event 15 Feb

FY '23 Preliminary Results

2024

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