Telecom Italia Rsp

Earnings Release • Feb 13, 2025

Index

Key Financials

TIM Consumer

TIM Enterprise

TIM Brasil

P&L

Cash Flow & Net Debt

Balance Sheet-Assets

Balance Sheet- Liabilities

Disclaimer

The financial results and information contained herein have been prepared by TIM's management for information and illustration purposes only.

In particular, the financial results contained herein are 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 are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2023, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January, 2024. Such financial results are unaudited.

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.

In particular, the TIM Group FY '24 preliminary "like-for-like" financial results are based on:

• § First half managerial "like-for-like" estimate of revenues, OPEX and CAPEX division between TIM and NetCo, considering the final perimeter by simulating the impact of the relationship between TIM and NetCo as regulated by the Master Service Agreement (MSA);
• § Second half results based on the effective impact of the relationship between TIM and NetCo as regulated by the MSA and the Transitional Services Agreement (TSA).

TIM Group FY '23 figures are based on managerial "like-for-like" estimate of revenues, OPEX and CAPEX division between TIM and NetCo, considering the final perimeter by simulating the effect as the transactions occurred in Jan. 2023 (to guarantee a "like-for-like" comparison YoY).

The managerial "like for like" figures should not be considered as substitutes for the economic and financial information for which they provide a reclassification, are unaudited, and are produced for explanatory purposes only. These figures, which are the result of managerial simulations, may differ materially from those that will be published in future financial statements under IFRS.

Foreign exchange:

• § TIM Brasil P&L figures and Capex translated @ '24 average exchange rate 5.83 R\$/€;
• § Group Equity FCF includes TIM Brasil flows translated @ '24 average exchange rate 5.83 R\$/€. It also includes the positive effects of significant hedging of TIM Brasil Equity FCF;
• § Year-end Group Net Debt includes year-end TIM Brasil Net Debt translated @ '24 year-end exchange rate 6.43 R\$/€.

The information contained herein should not be viewed as complete and exhaustive, and the accuracy of the information can in no way be guaranteed.

FY '24 Preliminary Financial & Operating Figures

Investor Relations

Key Financials BACK TO INDEX

€m, IFRS 16 & After Lease view. TIM Consumer and TIM Enterprise 2023 and 2024 figures have been restated to reflect a minor change in internal cost allocation, without affecting the Domestic perimeter figures

EQUIPMENT 316 TIM Domestic (2) 277	340 24 7.6 293 16 5.8	1,013 882	996 (17) 848 (34)	(1.7) (3.9)	- - - -
TIM Brasil 39	47 8 19.1	131 0	148 17	12.7	- -
OPEX 2,716	2,723 7 0.3	10,056	10,154 98	1.0	(451) (1,861)
TIM Domestic 2,221	2,200 (21) (0.9)	7,988	7,972 (16)	(0.2)	(451) (1,861)
TIM Brasil 503	529 26 5.1	2,098	2,211 113	5.4	- -
EBITDA 1,017	1,089 72 7.1	4,006	4,339 333	8.3	(396) (1,689)
TIM Domestic (2) 516	558 42 8.1	2,023	2,190 167	8.3	(396) (1,689)
o/w TIM Consumer		1,237	1,407		(1,527)
			170	13.7
o/w TIM Enterprise		662	700 38	5.7	(162)
o/w Sparkle 39	31 (8) (20.5)	126	84 (42)	(33.6)	- -
TIM Brasil 503	533 30 6.3	1,991	2,155 164	8.3	- -
		-8	-6
EBITDA After Lease 864	927 63 7.3	3,336	3,672 336	10.1	(396) (1,689)
TIM Domestic (2) 472	515 43 9.0	1,857	2,014 157	8.5	(396) (1,689)
o/w TIM Consumer		1,084	1,240 156	14.4	(1,527)
o/w TIM Enterprise		654	691 37	5.7	(162)
o/w Sparkle 38	31 (7) (18.4)	123	84 (39)	(31.7)	- -
TIM Brasil 394	414 20 5.7	1,487	1,664 177	11.9	- -
		-8	-6
CAPEX net of licences 641	757 116 18.1	2,064	2,091 27	1.3
TIM Domestic (4) 432	535 103 23.8	1,291	1,311 20	1.5
o/w TIM Consumer		894	863 (31)	(4.0)
o/w TIM Enterprise		293	351 58	20
o/w Sparkle 45	21 (24) (53.3)	106	97 (9)	(7.9)
TIM Brasil 209	222 13 6.3	773	780 7	1,0
EBITDA AL - CAPEX net of licences 223	170 -53 (24.3)	1,272	1,581 309	24.2
TIM Domestic 40	-20 -60	566	703 137	24.2
o/w TIM Consumer		190	377
			187	98.4
o/w TIM Enterprise		361	340 (21)	(5.8)
o/w Sparkle (7)	10 17 (242.9)	17	-14 (31)	(182.4)
TIM Brasil 185	192 7 5.1	714	884 170	23.8

(1) Organic figures excluding non-recurring items. Comparable base also excluding exchange rate fluctuations (avg. exchange-rate 5.83 R\$/€ in FY '24) (2) The sums may not add up to the total due to Sparkle elisions (3) TIM Consumer and TIM Enterprise revenues net of mutual intercompany (no impact on EBITDA) (4) CAPEX net one off separation (5) H2 '24 including TSA (€28m on revenues and service revenues, €20m on EBITDA and EBITDA AL)

FY '24 Preliminary Financial & Operating Figures

Investor Relations

TIM Consumer

€m, IFRS 16

EQUIPMENT & HANDSETS 359 (12)	173 532 (3.2) 42 32.1 30 6.0
Fixed lines ('000) 7,245 (341)	7,169 (4.5)	(331)	7,169 (4.4)	(331)	(4.4)
o/w Consumer 6,321 (315)	(4.7) 6,254	(300)	(4.6) 6,254	(300)	(4.6)
Broadband lines ('000) (2) 6,655 (255)	6,167 (3.7)	(677)	6,167 (9.9)	(677)	(9.9)
o/w Consumer (2) 5,835 (256)	(4.2) 5,349	(676)	(11.2) 5,349	(676)	(11.2)
5,455 71 UBB lines ('000)	5,478 1.3	74	5,478 1.4	74	1.4
Churn rate % (3) 11.3%	3.9% 1.5 p.p.		15.2% 0.1 p.p.		1.6 p.p.
o/w Consumer 11.3%	1.7 p.p. 3.9%		0.1 p.p. 15.1%		1.7 p.p.
ARPU Consumer (€/month) 30.1	30.7		30.2
2.1	7.7	1.8	6.2	2.1	7.3
Mobile lines ('000) 16,101 (439)	15,984 (2.7)	(413)	15,984 (2.5)	(413)	(2.5)
o/w Consumer 14,557 (497)	(3.3) 14,416	(480)	(3.2) 14,416	(480)	(3.2)
15,913 Human (427)	15,791 (2.6)	(409)	15,791 (2.5)	(409)	(2.5)
o/w Consumer 14,556 (497)	(3.3) 14,415	(480)	(3.2) 14,415	(480)	(3.2)
13,399 (332)	(2.4) 13,280	(298)	(2.2) 13,280	(298)	(2.2)
Human Calling
o/w Consumer 12,041 (402)	(3.2) 11,904	(369)	(3.0) 11,904	(369)	(3.0)
187 (11) Not Human (M2M)	193 (5.7)	(4)	193 (1.9)	(4)	(1.9)
Churn rate % (4) 14.5%	4.9% 0.5 p.p.		19.4% (0.2 p.p.)		0.2 p.p.
o/w Consumer 14.7%	0.6 p.p. 4.9%		(0.3 p.p.) 19.7%		0.4 p.p.
ARPU Consumer - Human calling (€/month) 10.6 (0.1)	10.6 (1.3)	(0.4)	10.6 (3.8)	(0.2)	(1.9)

(1) Organic figures excluding non-recurring items (2) Q4 '24 consumer broadband customer base cleaned (c.500k lines) to optimize overall costs with no impact on total customer base (3) On total lines, internal transformations and other causes excluded (4) On Human lines

FY '24 Preliminary Financial & Operating Figures

Investor Relations

BACK TO INDEX

TIM Enterprise

€m, IFRS 16

o/w Other IT 404 MSA 57	(33) (7.6) 1 1.8	179 24	(44) (19.7) 6 33.3	583 81	(76) (11.5) 7 9.5
PRODUCT/EQUIPMENT 171	(31) (15.3)	103	(11) (9.6)	274	(42) (13.3)

FY '24 Preliminary Financial & Operating Figures

Investor Relations

BACK TO INDEX

TIM Brasil

€m, IFRS 16 & After Lease view

EBITDA 1,488	1,622 134	503 533 1,991 2,155 9.0 30 6.3 164 8.3
EBITDA Margin 48.3% EBITDA After Lease 1,093	49.1% 1,250 157	0.8 p.p. 49.9% 394 14.4	50.1% 414	0.2 p.p. 20 5.7	48.7% 49.4% 1,487 1,664	177	0.7 p.p. 11.9
EBITDA AL Margin 35.5%	37.8%	2.3 p.p. 38.9%	38.9%	0.0 p.p.	36.4% 38.1%		1.7 p.p.
CAPEX net of licences 564	558 (6)	209 (1.1)	222	13 6.3	773 780	7	1,0
% on revenues 18.3%	16.9%	(1.4 p.p.) 20.6%	20.7%	0.1 p.p.	18.9% 17.9%		(1.0 p.p.)
Exchange rate AVG YTD (R\$/euro)	5.69				5.83
Mobile Lines ('000) (2) 61,254	62,149 895	61,248 1.5	62,058	810 1.3	61,248 62,058	810	1.3
ARPU Mobile (R\$/month) (3) 29.0	31.1 2.1	31.1 7.0	32.3	1.2 3.9	29.5 31.4	1.9	6.2
TIM UltraFibra Lines ('000) 791	793 2	802 0.3	790	(12) (1.6)	802 790	(12)	(1.6)
ARPU TIM UltraFibra (R\$/month) 97.3	97.8 0.5	95.9 0.5	95.5	(0.4) (0.4)	96.9 97.2	0.3	0.3

FY '24 Preliminary Financial & Operating Figures

Investor Relations

BACK TO INDEX

Profit & Loss

€m, Reported figures, IFRS 16

EBITDA 1,099 1,086	2,185
30.8% 28.5% EBITDA Margin	29.6%
(784) Depreciation and amortization
14 Gains (losses) on disposals of non-current assets
- Impairment reversals (losses) on non-current assets
EBIT 329
9.2% EBIT Margin
3
Income (loss) equity invest. valued equity method
(279) Net Financial Income / (Expenses)
Profit (loss) before tax from continuing operations 53
(67) Income tax expense
Profit (loss) from continuing operations (14)
195 Discontinued operations/Non-current assets held for sale
PROFIT (LOSS) 181
137 Parent Company
44 Minorities

FY '24 Preliminary Financial & Operating Figures

Investor Relations

Cash Flow & Net Debt

€m, Reported figures, After Lease view

EQUITY FREE CASH FLOW After Lease (973) (55)	(1,028) 193	514	707
Dividends and change in Equity (39) (37) Disposal and Financial investments (9) (21)	(76) (42) (30) 13,368	(41) 249	(83) 13,617
Licences 0 (24)	(24) 0	0	0
NET CASH FLOW After Lease (1,021) (137)	(1,158) 13,519	722	14,241
Adj. Net Debt After Lease EoP 21,370 21,507	21,507 7,988	7,266	7,266
LTM Organic EBITDA After Lease	3,673	3,672	3,672
Leverage (Adj. Net Debt AL / LTM Organic EBITDA AL)	2.17	1.98	1.98

LTM Oraanic EBITDA After Lease
Leverage (Adj. Net Debt AL / LTM Organic EBITDA AL)

FY '24 Preliminary Financial & Operating Figures

Investor Relations

Balance Sheet - Assets

€m, IFRS 16

- - - Other investments	-
NON-CURRENT ASSETS 51,279 51,044 49,634	28,790
26,292 26,123 25,634 Intangible assets	17,262
19,170 19,160 19,067 Goodwill	11,125
7,122 6,963 6,567 Intangible assets with a finite useful life	6,137
14,692 14,743 14,667 Tangible assets	4,545
14,692 14,743 14,667 Property, plant and equipment owned	4,545
5,515 5,419 5,177 Right of Use assets	3,450
4,780 4,759 4,156 Other assets	3,533
2,187 2,195 2,108 Miscellaneous receivables and other non-current assets	1,594
1,215 1,178 753	767
Non-current financial assets
o/w receivable for lease contracts 112 111 108	43
o/w other non-current financial assets 1,103 1,067 645	724
701 700 650 Deferred tax assets	549
140 150 155 Other investments	155
537 536 490 Investments in associates and joint ventures accounted for using the equity method	468
TOTAL ASSETS 62,159 60,167 58,126	37,863

FY '24 Preliminary Financial & Operating Figures

Investor Relations

Balance Sheet - Liabilities

€m, IFRS 16

26,027 25,951 16,498 Non-current financial liabilities	11,930
o/w liabilities for financing contracts and others 21,284 21,285 12,084	9,479
o/w liabilities for lease contracts 4,743 4,666 4,414	2,451
1,326 1,345 1,332 Miscellaneous payables and other non-current liabilities	773
511 514 498 Employee benefits	200
679 693 668 Provisions	448
83 97 117 Deferred tax liabilities	78
TOTAL LIABILITIES 44,646 43,160 41,640	24,164
EQUITY 17,513 17,007 16,486	13,699
13,646 13,197 12,742 Equity attributable to equity owners of the Parent	12,247
3,867 3,810 3,744 Equity attributable to Minority Interests	1,452
TOTAL LIABILITIES & EQUITY 62,159 60,167 58,126	37,863

FY '24 Preliminary Financial & Operating Figures

Investor Relations

Further questions

please contact the IR team

Investor_relations@telecomitalia.it