Telecom Italia Rsp

Earnings Release • Feb 13, 2025

#1 Key messages

Pietro Labriola, Group CEO

A transformational year…

FY 2024 guidance Achieved Completed Completed Completed Approved To be cashed-in NetCo disposal Largest ever EU liability management INWIT residual stake disposal Sparkle disposal '98 Concession fee

3

Plan ambitions

(1) Remuneration subject to availability of distributable reserves, BoD and Shareholders' approval. The targets, outlook and trends on which the assumption underlying the remuneration ambitions are based on forward looking assumptions, based on management expectations and subject to potential change also in the event of a strategic capital deployment not considered in this Plan

4

#2 FY 2024 Preliminary Results

Pietro Labriola, Group CEO Adrian Calaza, Group CFO

A stronger business emerging from the transformation…

Organic figures (1), Sparkle included

Delivered the transformation announced in 2022

Operational results improved Vertical integration overcome Regulatory burden reduced Balance sheet deleveraged Financial flexibility restored Capital intensity halved Three years of guidance achieved

(1) Excluding non-recurring items and exchange rate fluctuations (2) Headcount end of period (3) Adjusted Net Debt After Lease / Organic EBITDA After Lease. 2024 Net Debt AL including Inwit residual stake disposal (€ 0.25bn) (4) Leverage @ 2.0x excluding disposal of Inwit residual stake

…performing both in Italy and Brazil…

FY '24 organic pro-forma figures, Sparkle included, €bn and YoY trend (1)

(1) Group figures at average exchange-rate 5.83 R\$/€. Excluding non-recurring items and exchange rate fluctuations (2) Adjusted Net Debt After Lease / Organic EBITDA After Lease including INWIT residual stake disposal

…with solid operational results…

…meeting FY guidance for the third consecutive year…

Organic pro-forma figures, €bn and YoY trend (1)

(1) Excluding non-recurring items and exchange rate fluctuations. Group figures at average exchange-rate 5.83 R\$/€ (FY '24 guidance at 5.40 R\$/€) (2) Including TSA in Q3 and Q4, with positive contribution to FY '24 Revenue growth YoY (+0.2pp Group, +0.3pp Domestic) and EBITDA AL growth YoY (+0.6pp Group, +1.1pp Domestic) (3) Adjusted Net Debt AL / Organic EBITDA AL. FY '24 leverage target excluding the disposal of INWIT stake

…and delivering the planned net debt reduction

Adjusted Net Debt After Lease, €bn

…and capital structure fully restored (2)

#3 2025-'27 Strategic Plan update

Pietro Labriola, Group CEO Adrian Calaza, Group CFO Andrea Rossini, Head of TIM Consumer Elio Schiavo, Head of TIM Enterprise Alberto Griselli, TIM Brasil CEO

2025-'27 Plan directions

Core Business Consolidation

Focus on Customer Value Management with strong push on new access technologies and shift to a digital service model

Data Driven Company

Drive process automation and digitalization, use AI and analytics for better service and value creation

Focus on Growth Areas

Accelerate in a growing ICT market driven by digital transition. Capture upsides beyond connectivity building on customer base and go to market capabilities

Effective Capital Allocation

Prioritize investing in distinctive assets and strengthening of market position, potentially exploring inorganic options

Cost Transformation

Continue Cost Model Transformation leveraging a simplified perimeter and incorporating AI driven efficiency

Foundations on the most distinctive infrastructural assets:

pervasive mobile network, most extensive IP backbone in the country, 16 Data Centers with 100 MW deployed

High level priorities by entity

Investing € 6bn in '25-'27 to consolidate leadership and offer distinctive services in 5G, Cloud and IoT

TIM Brasil focus on consolidating 5G network quality leadership and developing IoT ecosystems

TIM Consumer

Strategy in action - Value strategy, selective scale and cost efficiency

S T E G R A T	Revenue stabilization	Cost-efficiency improvement	"Customer Platform" Scale-up
S N O TI C A	§ Scale up of fixed technology upgrade with significant progress on FTTH market share § Push on convergence and cross selling § Localized initiatives to rebalance market share in selected urban areas § Repricing and up-selling leveraging on micro clustering and dynamic pricing § Data and AI-driven CVM	§ Cost transformation initiatives: - Channel mix optimization and shift to digital - Improved digital experience and lower human interactions in sales and customer care - Increase MSA cost-efficiency § Smart CAPEX approach	§ Scale up of existing beyond core services (TIM Vision, device financing, digital services for Consumer and SMB) § Launch of utilities business in 2025 § Expansion of service portfolio from 2026

Performance trajectory - Strategic KPIs and growth targets

Strategy in action - Accelerating execution to drive higher growth and efficiency

TARGETS

ACTIONS

Sustainable growth fueled by ICT revenues

• § Keep increasing penetration of ICT solutions while evolving offering with propositions fueled by our unique assets
• § Consolidate market position by strengthening leadership with PA to accelerate NSH(1) growth, while intensifying focus on private sector
• § Push AI at the heart of our offering through proprietary applications and services built on third-party solutions

§ Align internal processes and systems to market best practices accelerating transition from Traditional Telco to Tech Champion

Operating model evolution

• § Keep transforming the workforce aligning competences to IT fields
• § Leverage on AI and GenAI to support Go-to-Market and streamline internal processes (e.g. Caring, Contract Management)

Powering key assets

• § Expanding high-performance Data Centers infrastructure to consolidate our leadership in a growing market
• § M&As in Professional & Managed Services to generate synergies with TIM Enterprise's core offering
• § Strengthen applications and platforms in high potential markets (e.g., smart cities, infrastructure and cultural heritage digital twin)

(1) National Strategic Hub

TIM Enterprise

Performance trajectory - Strategic KPIs and growth targets

Strategy in action - Crafting the next generation telco operator

Core business growth

• § To be the preferred mobile operator through:
• Best network: maintain consistent network development and promote quality leadership to consumers
• Best offer : enhance uniqueness through digital ecosystem growth and a refreshed more-for-more strategy
• Best service: evolve the customer journey to address pain points and enhance the overall experience
• § Broadband focused on operation optimization and efficiency, while monitoring market movements

Capturing upsides from new avenues

• § Developing and expanding B2B:
  • Focus on key verticals: agribusiness, logistics, utilities and industry
  • Expanding TAM by adding new verticals and managing segmentation
  • Scale up commercial activities, taking advantage of better organization and processes
  • Increase share of spending adding IoT solutions, while exploring expansion to ICT (M&A driven)

Strict discipline in capital allocation and expenditure

• § Zero-based budgeting for discretionary costs
• § Make vs. buy new opportunities in network and customer value management
• § Tower leases continuous optimization to control inflationary pressures
• § Capex deployment to secure the best network where it matters
• § Increase artificial intelligence adoption to boost productivity

TIM Brasil

Driving new possibilities - Updated plan (2025-'27)

All figures refer to TIM S.A. Normalized figures, YoY growth and 2024-'27 CAGR

Guidance 2025-'27

Excluding Sparkle and the effects of '98 Concession Fee. Organic pro-forma P&L figures (1), €bn, YoY growth and 2024-'27 CAGR

2024 actual 2025

(1) Excluding non-recurring items, change in consolidation area and exchange rate fluctuations. Group P&L figures @ avg. exchange-rate 5.83 R\$/€) (2) TIM Brasil flows based on annual exchange-rate published in Bloomberg Survey based on major banks projections as of 9 January '25 (avg. exchange rate @ 6.18 R\$/€ in '25, 6.37 R\$/€ in '26 and 6.20 R\$/€ in '27) (3) Including the effect of '98 Concession fee, 2025 Equity FCF would be ~€ 1.5bn (4) Adj. Net Debt AL/Organic EBITDA After Lease. Net Debt of TIM Brasil based on consensus exchange rate evolution (EoP exchange rate @ 6.21 R\$/€ in '25) (5) Including the effect of '98 Concession fee on Net Debt, leverage would be ~1.7x

TIM GROUP TIM DOMESTIC

2027

2026

Equity FCF generation ensures financial flexibility and return to shareholders' remuneration

TIM S.p.A. Shareholders' remuneration (1) subject to availability of distributable reserves, BoD and Shareholders' approval. The targets, outlook and trends on which the assumption underlying the remuneration ambitions are based on forward looking assumptions, based on management expectations and subject to potential change in the event of a strategic capital deployment not considered in this Plan

Return to Shareholders' remuneration

TIM S.p.A. Shareholders' remuneration (1) subject to availability of distributable reserves, BoD and Shareholders' approval. The targets, outlook and trends on which the assumption underlying the remuneration ambitions are based on forward looking assumptions, based on management expectations and subject to potential change in the event of a strategic capital deployment not considered in this Plan

	Shareholders' remuneration	Cash-out
Ordinary	~70% of Eq. FCF AL generated in '26 and '27 net of dividends to TIM Brasil minorities	~€ 0.5bn in '27 ~€ 0.6bn in '28
Extraordinary	~50% of Sparkle disposal proceeds	(2) ~€ 0.35bn in '26

Significant deleverage with remarkable financial flexibility, committed max. leverage 1.7x

Ambitious ESG targets provide a clear forecast of the transformation in action

Strategic pillars

• § Create a work environment that values skills and merit, ensuring fairness and integrity as fundamental principles for the growth
• § Develop efficient and green infrastructures (5G, fiber, Data centers)
• § Ensure cybersecurity and prevent attacks on infrastructures and customer data
• § Embrace the challenges and opportunities related to technological transformation

GROUP				Targets
Emissions Scope 1+2+3	100% Green Energy (Scope 2) 2025	Carbon Neutral (Scope 1+2) 2030	New Transition plan (1) (Scope 3) 2030	Net Zero 2040
Gender equality	(% women) (2) § Leadership position			35.5% 50%
ITALY	(% women) (3) § Hiring
Advanced digital solutions (4)				+17% YoY
Digital Identity services (5)	+30% CAGR '23-'25
BRAZIL
Workforce upskill digital capabilities	in §		AI Academy, Agile Academy	≥90% 2027

#4 Closing remarks

Pietro Labriola, Group CEO

The leader in the Telco and ICT revolution in Italy…

…and the most efficient player in Brazil…

…significant cash generation…

…committing to a best-in class leverage…

…ready to remunerate shareholders

Annex

Strong ESG performance, achieved best-in-class ratings

• § Excellent KPIs on energy efficiency, on green energy consumption (84% Italy while Brasil is already 100%) and emissions suggest potential competitive advantages if the Italian market adjusts energy prices and costs to align with European standards
• § The growth of innovative solutions led to a 26% increase in revenues compared to 2023. Based on cloud, IoT and Cybersecurity, aimed at accelerating the Italian digital transition

EBITDA AL growth driven by both Domestic and Brazil

Organic figures, € m

TIM Domestic

Domestic OPEX and CAPEX evolution

Organic figures, € m

• § OPEX slightly down YoY benefitting from Labour and MSA costs reduction notwithstanding higher revenue-driven costs
• § 23% of OPEX related to MSA, no contractual commitments

• § CAPEX increase YoY mainly driven by push on Data Centers and 5G
• § CAPEX margin stable YoY at ~13% thanks to efficiencies achieved
• § 17% of CAPEX related to Sparkle

TIM Domestic

Transformation plan - Over-achievement in '24, targeting € 740m EBITDA AL-CAPEX extra-savings by '27

Transformation Pillars

Streamline the cost baseline by

simplifying and right-sizing the cost structures, with a clearer full cost accountability

Operating model review

by evolving TIM digital capabilities, processes and operating model

TIM Domestic

MSA deep-dive

Key services between TIM and NetCo

TIM ACCESS Services NETWORK services B2B services ENERGY & REAL ESTATE FY '24, like-for-like figures, €bn and % weight 69% weight 13% 13% 5% Engineering, Delivery & Assurance P2P, Colocation, Legacy bandwidth & interconn. Data Center, IT Mobile/Corporate 1.9bn 0.2bn

Network/BSS and IP Bandwidth

(1) Minimum guarantees in terms of fees or volumes not contemplated. TIM only grants the acquisition of a minimum quantity of certain engineering services; however, based on the Business Plan such minimum quantity is sustainable and consistent or below TIM business plan (2) Guarantee of best possible price on products and services on a non-discrimination basis (3) Applied to all services

Services (3)

TIM selling to NetCo

Capital structure

(1) Net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets (2) "Accounting" amount including amortized costs (e.g. issue premiums/ discounts) and interests accrued and not yet collected (3) Nominal amount. Average maturity: 5.0 years (bond 5.6 years) (4) Including € 0.1bn securities pledge against a bank guarantee

Working Capital dynamics impacted by extraordinary items

Disclaimer 1/2

This presentation contains statements that constitute forward looking statements regarding the intent, belief or current expectations of future growth in the different business lines and the global business, financial results and other aspects of the activities and situation relating to the TIM Group. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected or implied in the forward-looking statements as a result of various factors. Consequently, TIM makes no representation, whether expressed or implied, as to the conformity of the actual results with those projected in the forward- looking statements. Forward- looking information is based on certain key assumptions which we believe to be reasonable as of the date hereof, but forward- looking information by its nature involves risks and uncertainties, which are outside our control, and could significantly affect expected results.

Analysts and investors are cautioned not to place undue reliance on those forward -looking statements, which speak only as of the date of this presentation.

The FY '24 "Like-for-Like" Financial Results and the information contained herein have been prepared by TIM's management for information and illustration purposes only.

Such Financial Results are prepared in accordance with the 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 FY '24 "Like-for-Like" Financial Results of the TIM Group 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.

Please note that the FY '24 "Like-for-Like" Financial Results 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), Equity Free Cash Flow, Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licences). 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.

These figures should not be considered as a substitute for the economic and financial information of which they provide a different detail, are unaudited, are produced for explanatory purposes only, and may differ from those that will be published in financial statements prepared in accordance with IFRS.

• § TIM Group full year 2024 preliminary financial and operating results are based on:
  • First half "like-for-like" estimate of revenues, OPEX and CAPEX division between TIM and NetCo components, 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 Master Service Agreement (MSA) and the Transitional Services Agreement (TSA)
• § TIM Group full year 2023 figures are based on "like-for-like" estimate of revenues, OPEX and CAPEX division between TIM and NetCo components, considering the final perimeter by simulating the effect as the transactions occurred in Jan. 2023 (to guarantee a "like-forlike" comparison YoY)
• § TI Sparkle is currently included in the TIM Domestic perimeter, unless otherwise specified. TIM Group full year 2024 pro-forma figures excluding Sparkle were prepared only for comparison purposes with the 2025-'27 plan

Disclaimer 2/2

Foreign exchange

FY '24 Results

• 1. TIM Brasil P&L figures and Capex translated @ '24 average exchange rate 5.83 R\$/€;
• 1. 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;
• 1. Year-end Group Net Debt includes year-end TIM Brasil Net Debt translated @ '24 year-end exchange rate 6.43 R\$/€.

Strategic Plan update

• 1. TIM Brasil P&L figures and Capex translated @ '24 average exchange rate 5.83 R\$/€;
• 1. Group Equity FCF includes TIM Brasil flows translated @ annual average exchange rate published in Bloomberg Survey based on major banks projections as of 9 January '25. The average exchange rate is 6.18 R\$/€ for '25, 6.37 R\$/€ for '26, 6.20 R\$/€ for '27;
• 1. Year-end Group Net Debt includes year-end TIM Brasil Net Debt translated @ year-end exchange rate published in Bloomberg Survey based on major banks projections as of 9 January '25. The year-end rate is 6.21 R\$/€ for '25, 6.47 R\$/€ for '26, 6.16 R\$/€ for '27.

Further questions please contact the IR team

Investor_relations@telecomitalia.it

40