Telecom Italia Rsp

Earnings Release • Nov 5, 2015

Dear Madam/Sir,

Please find attached the Telecom Italia Group press release on 3Q'15 Results and the related File with Financial Data and Key Performance Indicators.

We also provide you with a set of bullet points summarizing business and financial highlights aiming at providing a snapshot comment on TI results.

Domestic, Fixed and Mobile Domestic Revenues, have been reclassified since 1Q'15 to separately indicate Traditional and Innovative services, thus leaving the old layout of Fixed (Voice, Internet and Business Data) and Mobile (Business Generated/Received) Revenues behind.

To facilitate data reconciliation, until the end of 2015, in the annexed "Financial and Operating data" file, we will keep three tables titled "Old View" with the previous view of such items

DOMESTIC MOBILE: Revenues delivering on better expectations

Positive performance on total domestic mobile revenues in 3Q'15 +1.5% YoY: +3.7 pp vs 2Q'15 Further improvement on mobile service revenues in 3Q'15 -1.5% YoY: +1pp vs 2Q'15 Calling Customer Base stabilization due to our better competitive positioning +77K QoQ and +90K YoY and MNP balance strong improvement of +57K in 3Q'15 ARPU is stable YoY in 3Q'15 at € 12.5, up from € 11.9 of 2Q'15 Total BB users in steady growth: LTE increased by +770k QoQ, now at 3.4 mln users.

DOMESTIC FIXED: Improvement continues

Fixed Service Revenues in 3Q'15 -1.8% YoY: +0.1pp vs 2Q'15 (+2.6pp vs 1Q'15, +5.3pp vs FY14) Total Fast BB users up by 42K reaching 1.556 mln in 3Q'15 Retail Fiber Customers reached 435k: +61k vs 2Q'15. Combined with 428k Fiber-related Wholesale lines, total Fiber lines stand at 863k lines. TI Retail BB Accesses 6,984K in 3Q'15: +0.2pp vs 2Q'15 BB ARPU in 3Q'15 + 3.7% YoY, reaching € 20.7, € +0.7 euro vs 3Q'14.

DOMESTIC REVENUES:

Performance of Total Revenues gradually improving in 3Q'15 -1.4% YoY: +0.2pp vs 2Q'15 and +1.2pp vs 1Q'15 Service Revenues consistently upwards in 3Q'15 -1.5% YoY: +0.2pp vs 2Q'15 and +1.8 vs 1Q'15

DOMESTIC EBITDA:

Reported: 1,679 € mln in 3Q'15 (-6.5% YoY): + 21.2pp vs 2Q'15

Net of non-recurring items and discontinutities, Domestic Underlying EBITDA trend (1) : -3.1% YoY, just marginally slower than 2Q'15 -2.7% against stronger commercial activity

Adjustments: In order to bridge 3Q Y-o-Y Reported EBITDA performance to the Underlying EBITDA one are:

for 3Q'15:

-34 € mln for Provisions for risks and other costs and settlements -19 € mln for Employee reduction plan -38 € mln for Labour cost discontinuities

for 3Q'14:

• +2 € mln for Release of TIS provision
• -2 € mln for Employee reduction plan &Provisions for risks and other costs and settlements
• -5 € mln for Exchange rate fluctuation
• -27 € mln for other one-off items

			2014				2015			$\Delta$ % YoY
	IQ	IIQ	IIIQ	Sep YtD	IQ	IIQ	IIIQ	Sep YtD	IQ	IIQ	IIIO	YtD
EBITDA	1.792	1,709	1,795	5,296	1.610	1,236	1,679	4,525	$-10.2%$	$-27.7%$	$-6.5%$	$-14.6%$
Reported
EBITDA Organic net non recurring items	1.797		1,643 1,800	5,240	1,610		1,629 1,732	4,971	$-10.4%$	$-0.9%$	$-3.8%$	$-5.1%$
o/w Non Recurring Items	(5)	66	(5)	56	۰	(393)	(53)	(446)
Exchange Rate Fluctuation	(5)	(5)	(5)	(15)
Release TIS provisioning		72	$\overline{2}$	74
Employee reduction plan			(1)	(1)		(24)	(19)	(43)
Provisions for risks and other costs and settlements		(1)	(1)	(2)		(369)	(34)	(403)
Other Discontinuities	60	(41)	(27)	(8)	(45)	(9)	(38)	(92)
Labour cost discontinuities	21		×.	21	(23)	(18)	(38)	(79)
Other one-off items	39	(41)	(27)	(29)	(22)	9		(13)
Opex Organic underlying	(2,005)		$(2,135)$ $(1,992)$ $(6,132)$		(1,976)		$(2,106)$ $(1,982)$	(6,064)	1.4%	1.3%	0.5%	1.1%
EBITDA Organic Underlying	1,737	1.684	1,827	5,248	1,655	1,638	1,770	5,063	$-4.8%$	$-2.7%$	$-3.1%$	$-3.5%$

(1) The "Domestic Underlying EBITDA trend" is based on the Adjusted Reported Domestic EBITDA. This representation is provided as additional information to our Reported EBITDA that represents Operating profit before depreciation and amortization, capital gains (losses) and impairment reversals (losses) on non-current assets.

DOMESTIC CAPEX

Continued Growth on Innovative, that in 3Q'15 were 0.4 € bln: +75% YoY

• NGN Capex increase in 3Q'15 +99% YoY
• LTE Capex increase in 3Q'15 +27% YoY

BRAZIL

Financial Highlights

• Total Revenues impacted by lower handset sales and by challenging environment: 3Q'15 -15.2% YoY (-6.4pp vs 2Q'15)
• Drop in Handset Revenues in 3Q'15: -58.8% YoY (-30.8pp vs 2Q'15)
• Mobile Service Revenues slower decline due to sharp MTR cut and Voice/SMS volumes decrease: 3Q'15 -7.1% YoY (-1.4pp vs 2Q'15)
• Business Generated Revenues (9M'15: +1.0% YoY) continue to show data uptake, with Innovative Services growing at a solid double-digit pace (9M'15 +40.8% YoY, 3Q'15: +34.1% YoY)
• Fixed Service revenues confirm their growth: 3Q'15 +9.8% YoY and 9M'15 +12.1% YoY
• EBITDA declined low-single digit supported by cost control and efficiencies: 3Q'15 -3.4% YoY (+1.8pp vs 2Q'15) Strong EBITDA margin gain in 3Q'15 at 31.2%: +3.8pp YoY
• Total Capex increased in 3Q15 by +21.7% YoY, reaching a 28.4% level on revenues in 3Q'15 (+8.6pp vs 3Q'14).

Operational Highlights

• Prepaid customer base showed a constant decrease from the beginning of the year, including the effect of new SIM disconnection policy aimed at cost savings and prioritizing revenues (1Q'15: -0.5 mln, 2Q: -1.7 mln, 3Q'15 -2.3 mln)
• Postpaid customer base growing double digit in 3Q'15: +13% YoY

Net Profit: +362 € mln in 9M'15

9M'15 Normalized Net Profit would have been above 1 € bln, netting the impact of Mandatory Convertible Bond and Bond Buy Back (~+0.5 € bln), Provisions for Risks (~+ 0.34 € bln) and Gain on Brazilian Towers (~-0.16 € bln)

GROUP 26.804 BLN € NET DEBT

Net Financial Position Adjusted at September 30, 2015: 26.804 € bln (-0.2 € bln vs 2Q'15)

3Q15 Financial and operating data

Index click on the links below Disclaimer P&L Group YTD P&L Group Q Key fin data by BU YTD Key Financial data by BU quarter Net Debt & Cashflow Balance Sheet Contacts Domestic Business Results Domestic Wireline Results Domestic Mobile Results investor_relations@telecomitalia.it TIM Brasil Results Website link: Rep&Org Telecom Italia Group

TELECOM ITALIA INVESTOR RELATIONS

Telecom Italia Investor Relations

Disclaimer

The financial and operating data have been extracted or derived, with the exception of some data, from the Condensed Consolidated Financial Statements as of and for the nine months ended 30 September 2015 which have been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the European Union (designated as IFRS). Such interim financial statements are unaudited.

The accounting policies adopted in the preparation of the Condensed Consolidated Financial Statements as of and for the nine months ended 30 September 2015 have been applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2014, to which reference should be made, except for the new standards and interpretations adopted by the Telecom Italia Group starting from 1 January 2015 which had no effects on the Condensed Consolidated Financial Statements as of and for the nine months ended 30 September 2015.

€ mln	1Q14	1H14	9M14	FY14	1Q15	1H15	9M15
REVENUES	5,188	10,551	15,972	21,573	5,053	10,097	14,875
Other Income	84	183	275	401	53	131	206
TOTAL OPERATING REVENUES AND OTHER INCOME	5,272	10,734	16,247	21,974	5,106	10,228	15,081
Acquisition of goods and services	(2,179)	(4,557)	(6,887)	(9,430)	(2,172)	(4,374)	(6,343)
Employee benefits expenses	(775)	(1,596)	(2,320)	(3,119)	(833)	(1,705)	(2,433)
Other operating expenses	(267)	(559)	(855)	(1,175)	(265)	(888)	(1,160)
Internally generated assests and Others	149	323	403	536	195	372	471
EBITDA	2,200	4,345	6,588	8,786	2,031	3,633	5,616
EBITDA Margin	42.4%	41.2%	41.2%	40.7%	40.2%	36.0%	37.8%
Depreciation and amortization	(1,070)	(2,154)	(3,229)	(4,284)	(1,052)	(2,130)	(3,164)
Impairment reversals (losses) on non-current assets		(1)	(1)	(1)		-	-
Gains (losses) on disposals of non-current assets	37	35	35	29		279	348
EBIT	1,167	2,225	3,393	4,530	979	1,782	2,800
EBIT Margin	22.5%	21.1%	21.2%	21.0%	19.4%	17.6%	18.8%
Income (loss) equity invest. valued equity method	6	10	10	11	2	4	15
Net Financial Income / (Expenses)	(685)	(1,246)	(1,737)	(2,194)	(818)	(1,484)	(1,973)
Profit (loss) before tax from continuing operations	488	989	1,666	2,347	163	302	842
Income tax expense	(254)	(417)	(637)	(928)	(74)	(193)	(389)
Profit (loss) from continuing operations	234	572	1,029	1,419	89	109	453
Profit (loss) from Discontinued operations/Non-current assets held for sale	133	260	386	541	169	330	480
Profit (loss) for the year	367	832	1,415	1,960	258	439	933
Attributable to:
Owners of the Parent	222	543	985	1,350	80	29	362
Non-controlling interests	145	289	430	610	178	410	571

P&L Group

UNAUDITED FIGURES

P&L Group

€ mln	1Q14	2Q14	3Q14	4Q14	1Q15	2Q15	3Q15
REVENUES	5,188	5,363	5,421	5,601	5,053	5,044	4,778
Other Income	84	99	92	126	53	78	75
TOTAL OPERATING REVENUES AND OTHER INCOME	5,272	5,462	5,513	5,727	5,106	5,122	4,853
Acquisition of goods and services	(2,179)	(2,378)	(2,330)	(2,543)	(2,172)	(2,202)	(1,969)
Employee benefits expenses	(775)	(821)	(724)	(799)	(833)	(872)	(728)
Other operating expenses	(267)	(292)	(296)	(320)	(265)	(623)	(272)
Internally generated assests and Others	149	174	80	133	195	177	99
EBITDA	2,200	2,145	2,243	2,198	2,031	1,602	1,983
EBITDA Margin	42.4%	40.0%	41.4%	39.2%	40.2%	31.8%	41.5%
Depreciation and amortization	(1,070)	(1,084)	(1,075)	(1,055)	(1,052)	(1,078)	(1,034)
Impairment reversals (losses) on non-current assets		(1)
Gains (losses) on disposals of non-current assets	37	(2)		(6)		279	69
EBIT	1,167	1,058	1,168	1,137	979	803	1,018
EBIT Margin	22.5%	19.7%	21.5%	20.3%	19.4%	15.9%	21.3%
Income (loss) equity invest. valued equity method	6	4		1	2	2	11
Net Financial Income / (Expenses)	(685)	(561)	(491)	(457)	(818)	(666)	(489)
Profit (loss) before tax from continuing operations	488	501	677	681	163	139	540
Income tax expense	(254)	(163)	(220)	(291)	(74)	(119)	(196)
Profit (loss) from continuing operations	234	338	457	390	89	20	344
Profit (loss) from Discontinued operations/Non-current assets held for sale	133	127	126	155	169	161	150
Prifit (loss) for the year	367	465	583	545	258	181	494
Attributable to:
Owners of the Parent	222	321	442	365	80	(51)	333
Non-controlling interests	145	144	141	180	178	232	161

UNAUDITED FIGURES

Key financial data by Business Unit YTD

UNAUDITED FIGURES

REVENUES (€ mln)	1Q14	1H14	9M14	FY14	1Q15	1H15	9M15
Domestic	3,728	7,531	11,336	15,303	3,631	7,375	11,127
o/w Wireline Domestic	2,771	5,508	8,226	10,999	2,657	5,345	7,990
o/w Mobile Domestic	1,175	2,439	3,723	5,091	1,151	2,387	3,690
Brazil	1,451	3,009	4,617	6,244	1,411	2,688	3,696
TI Media	15	31	51	71	21	42	62
Other activities & Elim.	(6)	(20)	(32)	(45)	(10)	(8)	(10)
TI Group	5,188	10,551	15,972	21,573	5,053	10,097	14,875
EBITDA Reported (€ mln)
Domestic	1,792	3,501	5,296	6,998	1,610	2,846	4,525
Brazil	406	840	1,281	1,774	415	784	1,102
TI Media	6	11	19	25	9	20	21
Other activities & Elim.	(4)	(7)	(8)	(11)	(3)	(17)	(32)
TI Group	2,200	4,345	6,588	8,786	2,031	3,633	5,616
EBIT Reported (€ mln)
Domestic	990	1,863	2,845	3,738	814	1,222	2,090
Brazil	181	369	557	795	163	568	737
TI Media	(1)	(2)	(2)	6	3	9	4
Other activities & Elim.	(3)	(5)	(7)	(9)	(1)	(17)	(31)
TI Group	1,167	2,225	3,393	4,530	979	1,782	2,800
CAPEX (€ mln)
Domestic	493	1,177	1,792	2,783	676	1,506	2,297
Brazil	189	526	843	2,195	287	637	930
TI Media	2	4	5	6	1	3	5
Other, Elim & Adj	0	0	0	0	0	0	1
TI Group	684	1,707	2,640	4,984	964	2,146	3,233
CAPEX ON SALES (%)
Domestic	13.2%	15.6%	15.8%	18.2%	18.6%	20.4%	20.6%
Brazil	13.0%	17.5%	18.3%	35.2%	20.3%	23.7%	25.2%
TI Media	13.3%	12.9%	9.8%	8.5%	4.8%	7.1%	8.1%
TI Group	13.2%	16.2%	16.5%	23.1%	19.1%	21.3%	21.7%

							UNAUDITED FIGURES
REVENUES (€ mln)	1Q14	2Q14	3Q14	4Q14	FY14	1Q15	2Q15	3Q15
Domestic	3,728	3,803	3,805	3,967	15,303	3,631	3,744	3,752
o/w Wireline Domestic	2,771	2,737	2,718	2,773	10,999	2,657	2,688	2,645
o/w Mobile Domestic	1,175	1,264	1,284	1,368	5,091	1,151	1,236	1,303
Brasile	1,451	1,558	1,608	1,627	6,244	1,411	1,277	1,008
TI Media	15	16	20	20	71	21	21	20
Other activities & Elim.	(6)	(14)	(12)	(13)	(45)	(10)	2	(2)
TI Group	5,188	5,363	5,421	5,601	21,573	5,053	5,044	4,778
EBITDA Reported (€ mln)
Domestic	1,792	1,709	1,795	1,702	6,998	1,610	1,236	1,679
Brasile	406	434	441	493	1,774	415	369	318
TI Media	6	5	8	6	25	9	11	1
Other activities & Elim.	(4)	(3)	(1)	(3)	(11)	(3)	(14)	(15)
TI Group	2,200	2,145	2,243	2,198	8,786	2,031	1,602	1,983
EBITDA Margin Reported
Domestic	48.1%	44.9%	47.2%	42.9%	45.7%	44.3%	33.0%	44.7%
Brasile	28.0%	27.9%	27.4%	30.3%	28.4%	29.4%	28.9%	31.5%
TI Media	40.0%	31.3%	40.0%	30.0%	35.2%	42.9%	52.4%	5.0%
TI Group	42.4%	40.0%	41.4%	39.2%	40.7%	40.2%	31.8%	41.5%
EBIT Reported (€ mln)
Domestic	990	873	982	893	3,738	814	408	868
Brasile	181	188	188	238	795	163	405	169
TI Media	(1)	(1)	-	8	6	3	6	(5)
Other activities & Elim.	(3)	(2)	(2)	(2)	(9)	(1)	(16)	(14)
TI Group	1,167	1,058	1,168	1,137	4,530	979	803	1,018
EBIT Margin Reported
Domestic	26.6%	23.0%	25.8%	22.5%	24.4%	22.4%	10.9%	23.1%
Brasile	12.5%	12.1%	11.7%	14.6%	12.7%	11.6%	31.7%	16.8%
TI Media	-6.7%	-6.3%		40.0%	8.5%	14.3%	28.6%	-25.0%
TI Group	22.5%	19.7%	21.5%	20.3%	21.0%	19.4%	15.9%	21.3%
CAPEX (€ mln)
Domestic	493	684	615	991	2,783	676	830	791
Brasile	189	337	317	1,352	2,195	287	350	293
TI Media	2	2	1	1	6	1	2	2
Elim & Adj	0	0	0	0	0	0	0	1
TI Group	684	1,023	933	2,344	4,984	964	1,182	1,087
CAPEX ON SALES (%)
Domestic	13.2%	18.0%	16.2%	25.0%	18.2%	18.6%	22.2%	21.1%
Brasile	13.0%	21.6%	19.7%	83.1%	35.2%	20.3%	27.4%	29.1%
TI Media	13.3%	12.5%	5.0%	5.0%	8.5%	4.8%	9.5%	10.0%
TI Group	13.2%	19.1%	17.2%	41.8%	23.1%	19.1%	23.4%	22.8%

Net Cash Flow & Net Debt Dynamics (mln euro)

	FY13	1Q14	1H14	9M14	FY14	1Q15	1H15	9M15
EBITDA	9,540	2,200	4,345	6,588	8,786	2,031	3,633	5,616
CAPEX	(4,400)	(684)	(1,707)	(2,640)	(4,984)	(964)	(2,146)	(3,233)
Change in net operating working capital:	(230)	(1,502)	(1,584)	(1,604)	(464)	(1,500)	(1,119)	(1,144)
Change in inventories	(23)	(27)	(50)	11	55	(40)	(54)	19
Change in trade receivables and net amounts due from customers on construction contracts	1,074	(77)	(465)	(314)	(125)	(345)	(128)	315
Change in trade payables (*)	(497)	(1,065)	(886)	(1,039)	72	(980)	(911)	(1,435)
Other changes in operating receivables/payables	(784)	(333)	(183)	(262)	(466)	(135)	(26)	(43)
Change in provisions for employee benefits	(49)	(5)	(16)	(33)	(59)	(6)	19	32
Change in operating provisions and Other changes	(58)	(23)	6	(39)	(105)	(16)	314	280
Net operating Free Cash Flow	4,803	(14)	1,044	2,272	3,174	(455)	701	1,551
	62	74	76	78	238
Sale of investments and other disposals flow Share capital increases/reimbursements, including incidental costs	9			11	14	3 186	1,379 186	1,554 186
Financial investments flow	(9)	(9)	(31)	(31)	(32)		(24)	(35)
Dividends payment	(537)		(208)	(252)	(252)	(3)	(204)	(204)
Change in finance lease contracts							(984)	(1,367)
Finance expenses, income taxes and other net non-operating requirements flow	(2,928)	(624)	(1,179)	(1,609)	(2,478)	(486)	(1,217)	(1,616)
Reduction/(Increase) in adjusted net financial debt from continuing operations	1,400	(573)	(298)	469	664	(755)	(163)	69
Reduction/(Increase) in net financial debt from Discontinued operations/Non-current assets held for sale	67	(149)	(253)	(234)	(508)	(24)	(178)	(222)
Reduction/(Increase) in adjusted net financial debt	1,467	(722)	(551)	235	156	(779)	(341)	(153)
OPENING NET FINANCIAL DEBT (Adjusted)	28,274	26,807	26,807	26,807	26,807	26,651	26,651	26,651
Net cash flow	1,467	(722)	(551)	235	156	(779)	(341)	(153)
ENDING NET FINANCIAL DEBT (Adjusted)	26,807	27,529	27,358	26,572	26,651	27,430	26,992	26,804
Adj for fair value valuation of derivatives and related underlyings	1,135	1,281	1,479	1,489	1,370	1,573	1,366	1,163
ENDING NET FINANCIAL DEBT (Reported)	27,942	28,810	28,837	28,061	28,021	29,003	28,358	27,967

UNAUDITED FIGURES

(*) Includes the change in trade payables for amounts due to fixed asset suppliers

Consolidated Balance Sheet
							UNAUDITED FIGURES
€ mln ASSETS	FY13	1Q14	1H14	9M14	FY14	1Q15	1H15	9M15
NON-CURRENT ASSETS Intangible assets
Goodwill	29,932	29,984	30,062	30,023	29,943	29,847	29,839	29,542
Intangible assets with a finite useful life	6,280	6,180	6,109	5,941	6,827	6,669	6,648	6,045
	36,212	36,164	36,171	35,964	36,770	36,516	36,487	35,587
Tangible assets Property, plant and equipment owned	12,299	12,182	12,356	12,320	12,544	12,293	12,314	11,906
Assets held under finance leases	920	887	862	838	843	813	1,756	2,051
	13,219	13,069	13,218	13,158	13,387	13,106	14,070	13,957
Other non-current assets
Investments in associates and joint ventures accounted for using the equity method	65	35	35	35	36	36	59	59
Other investments Securities, financial receivables and other non-current financial assets	42 1,256	46 1,340	44 1,603	43 1,998	43 2,445	48 3,613	48 2,793	42 2,918
Miscellaneous receivables and other non-current assets	1,607	1,697	1,769	1,534	1,571	1,594	1,663	1,618
Deferred tax assets	1,039	983	962	1,001	1,118	1,195	1,035	943
	4,009	4,101	4,413	4,611	5,213	6,486	5,598	5,580
TOTAL NON-CURRENT ASSETS (A)	53,440	53,334	53,802	53,733	55,370	56,108	56,155	55,124
CURRENT ASSETS
Inventories Trade and miscellaneous receivables and other current assets	365 5,389	392 5,921	416 6,271	354 5,979	313 5,615	353 6,361	365 6,028	291 5,348
Current income tax receivables	123	36	45	26	101	32	34	19
Other investments
Securities other than investments, financial receivables and other current financial assets Cash and cash equivalents	1,631 5,744	1,646 3,945	1,618 4,983	1,561 4,106	1,611 4,812	2,142 5,507	1,975 4,752	2,172 4,534
Current assets sub-total	13,252	11,940	13,333	12,026	12,452	14,395	13,154	12,364
Discontinued operations/assets held for sale of a financial nature	657	508	405	424	165	217	294	258
of a non-financial nature	2,871	2,500	2,636	2,940	3,564	3,995	4,122	4,403
	3,528	3,008	3,041	3,364	3,729	4,212	4,416	4,661
TOTAL CURRENT ASSETS (B)	16,780	14,948	16,374	15,390	16,181	18,607	17,570	17,025
TOTAL ASSETS (A+B)	70,220	68,282	70,176	69,123	71,551	74,715	73,725	72,149
EQUITY AND LIABILITIES
EQUITY Equity attributable to equity holders of the Parent	17,061	17,343	17,475	17,882	18,145	18,282	18,411	17,962
Equity attributable to Minority Interests	3,125	3,038	3,157	3,326	3,554	3,768	4,281	4,073
TOTAL EQUITY (C)	20,186	20,381	20,632	21,208	21,699	22,050	22,692	22,035
NON-CURRENT LIABILITIES
Non-current financial liabilities	31,084	31,040	32,505	33,027	32,325	34,327	30,973	31,285
Employee benefits	889	894	1,026	978	1,056	1,059	1,020	1,023
Deferred tax liabilities Provisions	234 699	281 706	315 720	372 711	438 720	530 628	460 608	541 563
Miscellaneous payables and other non-current liabilities	779	766	755	747	697	793	1,005	1,030
TOTAL NON-CURRENT LIABILITIES (D)	33,685	33,687	35,321	35,835	35,236	37,337	34,066	34,442
CURRENT LIABILITIES
Current financial liabilities	6,119	5,182	4,913	3,095	4,686	6,036	6,849	6,206
Trade and miscellaneous payables and other current liabilities	8,649	7,699	8,004	7,584	8,376	7,604	8,061	7,317
Current income tax payables Current liabilities sub-total (E)	20 14,788	52 12,933	48 12,965	28 10,707	36 13,098	21 13,661	101 15,011	4 13,527
Liabilities directly associated with Discontinued operations/Non-current assets held for sale
of a financial nature of a non-financial nature	27	27	28	28	43	119	350	358
	1,534 1,561	1,254 1,281	1,230 1,258	1,345 1,373	1,475 1,518	1,548 1,667	1,606 1,956	1,787 2,145
TOTAL CURRENT LIABILITIES (E)	16,349	14,214	14,223	12,080	14,616	15,328	16,967	15,672
TOTAL LIABILITIES (F=D+E)	50,034	47,901	49,544	47,915	49,852	52,665	51,033	50,114
TOTAL EQUITY AND LIABILITIES (C+F)	70,220	68,282	70,176	69,123	71,551	74,715	73,725	72,149

			Domestic Business Results - Reported Figures
															UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's ('000)
Wireline
Physical accesses	13,027	-5.4%	12,828	-5.4%	12,656	-5.4%	12,480	-5.5%	12,480	-5.5%	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%
Broadband (retail+wholesale)	8,761	-1.3%	8,757	-0.4%	8,743	+0.1%	8,750	+0.1%	8,750	+0.1%	8,784	+0.3%	8,821	+0.7%	8,839	+1.1%
Mobile
Total lines	30,996	-2.7%	30,660	-3.3%	30,374	-3.7%	30,350	-2.8%	30,350	-2.8%	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%
€ mln	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
REVENUES	3,728	-8.3%	3,803	-8.2%	3,805	-5.0%	3,967	-5.0%	15,303	-6.6%	3,631	-2.6%	3,744	-1.6%	3,752	-1.4%
o/w Services	3,554	-8.8%	3,567	-8.9%	3,594	-6.2%	3,619	-4.4%	14,334	-7.1%	3,435	-3.3%	3,505	-1.7%	3,539	-1.5%
o/w Equipments	174	+1.9%	236	+3.9%	211	+21.6%	348	-10.6%	969	+0.9%	196	+12.3%	239	+1.3%	213	+0.7%
o/w Domestic Mobile Services	1,099	-14.9%	1,138	-13.3%	1,189	-7.1%	1,183	-5.7%	4,608	-10.3%	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%
o/w Traditional	713	-24.1%	726	-21.9%	727	-16.7%	695	-16.1%	2,861	-19.9%	621	-12.9%	622	-14.3%	639	-12.1%
o/w Innovative	328	+9.9%	342	+8.4%	390	+16.6%	404	+13.1%	1,464	+12.1%	375	+14.4%	416	+21.8%	453	+16.0%
o/w Wholesale	58	+8.7%	69	+5.5%	72	-0.5%	83	+23.0%	283	+9.1%	57	-1.6%	71	+2.1%	79	+10.0%
o/w Domestic Wireline Services	2,715	-7.4%	2,664	-8.6%	2,639	-7.2%	2,655	-5.3%	10,672	-7.1%	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%
o/w Traditional Services	1,303	-10.3%	1,263	-12.8%	1,228	-9.8%	1,226	-7.6%	5,021	-10.2%	1,193	-8.4%	1,185	-6.2%	1,151	-6.3%
o/w Innovative Services	533	+0.3%	541	+1.9%	550	+3.1%	574	+5.1%	2,199	+2.6%	558	+4.6%	583	+7.8%	577	+4.9%
o/w Domestic Wholesale	606	-13.5%	586	-10.2%	583	-9.2%	540	-14.7%	2,316	-11.9%	560	-7.7%	549	-6.4%	550	-5.6%
o/wTIS Group	301	+6.4%	300	-4.2%	304	-10.3%	339	+3.4%	1,244	-1.5%	310	+3.0%	325	+8.3%	336	+10.5%
o/w Subs. Adj. and Other	-29	+21.7%	-27	+17.7%	-27	+17.0%	-25	+21.3%	-108	+19.5%	-26	+12.2%	-28	-3.3%	-23	+15.8%
Elimination & Other	-260	+20.5%	-234	+24.6%	-234	+19.6%	-219	+19.9%	-946	+21.2%	-213	+18.0%	-218	+6.8%	-223	+4.8%
EBITDA	1,792	-8.2%	1,709	-7.5%	1,795	-11.6%	1,702	-10.9%	6,998	-9.6%	1,610	-10.2%	1,236	-27.7%	1,679	-6.5%
EBITDA Margin	48.1%		44.9%		47.2%		42.9%		45.7%		44.3%		33.0%		44.7%
Capex	493	-14.9%	684	-10.9%	615	-9.3%	991	-1.5%	2,783	-8.2%	676	+37.1%	830	+21.3%	791	+28.6%
% on revenues	13.2%		18.0%		16.2%		25.0%		18.2%		18.6%		22.2%		21.1%
Headcount at period-end ('000)	53,302	-1.1%	53,224	-0.9%	53,249	-0.7%	53,076	-0.6%	53,076	-0.6%	52,965	-0.6%	52,825	-0.7%	52,726	-1.0%

					Domestic Wireline Results - Reported Figures
															UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's
Physical accesses ('000)	13,027	-5.4%	12,828	-5.4%	12,656	-5.4%	12,480	-5.5%	12,480	-5.5%	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%
OLO Access (on TI infrastructure)	7,211	-0.4%	7,258	+0.3%	7,167	+0.0%	7,224	+0.8%	7,224	+0.8%	7,297	+1.2%	7,375	+1.6%	7,392	+3.1%
o/w ULL	5,394	+1.5%	5,461	+2.1%	5,363	+0.7%	5,404	+0.9%	5,404	+0.9%	5,460	+1.2%	5,511	+0.9%	5,517	+2.9%
o/w Virtual ULL	28	-14.3%	27	-13.1%	25	-17.3%	24	-14.7%	24	-14.7%	26	-6.5%	27	+1.4%	29	+16.7%
o/w Wholesale Line Rental	660	-14.4%	634	-14.3%	609	-13.5%	588	-12.4%	588	-12.4%	565	-14.4%	547	-13.7%	523	-14.1%
o/w Naked	1,125	+0.3%	1,128	+1.3%	1,156	+4.8%	1,185	+6.4%	1,185	+6.4%	1,207	+7.3%	1,213	+7.5%	1,218	+5.4%
o/w NGN	4	-	8	-	14	-	24	-	24	-	39	-	76	-	105	-
TI Retail Broadband Accesses ('000)	6,933	-0.7%	6,939	+0.1%	6,932	+0.6%	6,921	+0.1%	6,921	+0.1%	6,945	+0.2%	6,971	+0.5%	6,984	+0.7%
o/w Business	1,544	-0.7%	1,545	+0.7%	1,552	+1.5%	1,551	+1.0%	1,551	+1.0%	1,544	+0.0%	1,522	-1.5%	1,505	-3.1%
o/w Consumer	5,389	-0.8%	5,393	-0.1%	5,379	+0.3%	5,370	-0.2%	5,370	-0.2%	5,401	+0.2%	5,450	+1.0%	5,479	+1.8%
o/w NGN	45	-	103	-	151	-	231	-	231	-	290	-	374	-	435	-
% flat offers on TI total portfolio (Consumer+Business)	91%	1.5pp	91%	1.6pp	91%	1.7pp	92%	1.7pp	92%	1.7pp	92%	1.8pp	93%	1.9pp	93%	1.9pp
BroadBand Accesses Wholesale ('000)	1,828	-3.4%	1,819	-2.3%	1,811	-1.6%	1,829	+0.2%	1,829	+0.2%	1,839	+0.6%	1,850	+1.7%	1,855	+2.4%
BB Arpu (euro/mese)	19.2	+1.9%	19.6	+2.5%	20.0	+4.1%	20.2	+5.2%	19.8	+3.4%	20.4	+6.0%	20.9	+6.7%	20.7	+3.7%
REVENUES(€ mln)	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
TOTAL	2,771	-6.9%	2,737	-8.3%	2,718	-6.2%	2,773	-5.5%	10,999	-6.7%	2,657	-4.1%	2,688	-1.8%	2,645	-2.7%
o/w Services	2,715	-7.4%	2,664	-8.6%	2,639	-7.2%	2,655	-5.3%	10,672	-7.1%	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%
o/w Equipments	56	+23.8%	73	+1.9%	79	+47.8%	118	-10.6%	327	+7.9%	62	+9.1%	74	+1.4%	53	-32.5%
TRADITIONAL SERVICES	1,303	-10.3%	1,263	-12.8%	1,228	-9.8%	1,226	-7.6%	5,021	-10.2%	1,193	-8.4%	1,185	-6.2%	1,151	-6.3%
o/w Voice	1,123	-10.8%	1,093	-12.4%	1,055	-10.5%	1,072	-8.7%	4,342	-10.6%	1,038	-7.6%	1,015	-7.1%	978	-7.3%
o/w Traffic	377	-21.7%	366	-21.4%	342	-16.1%	375	-8.9%	1,460	-17.3%	353	-6.3%	359	-1.9%	348	+1.6%
o/w Access	665	-4.9%	646	-8.5%	631	-9.3%	620	-9.0%	2,562	-7.9%	612	-8.0%	586	-9.3%	562	-10.9%
o/w Voice VAS	32	-4.0%	33	+2.0%	34	+5.3%	33	-5.4%	133	-0.6%	30	-6.7%	29	-12.9%	28	-18.0%
o/w Rental & other	48	+9.6%	47	+10.8%	48	+11.3%	44	-3.6%	187	+6.9%	43	-12.1%	41	-14.3%	40	-16.0%
o/w Business Data & Others trad	180	-6.9%	171	-15.5%	174	-5.6%	155	+0.8%	679	-7.3%	155	-13.9%	170	-0.5%	173	-0.3%
o/w Data Services	126	-4.8%	125	-4.2%	122	-9.8%	123	-4.9%	497	-6.0%	118	-6.8%	120	-4.3%	110	-9.8%
o/w Rental & other	54	-11.5%	45	-36.3%	51	+6.4%	31	+31.7%	182	-10.9%	37	-30.4%	50	+10.0%	63	+22.3%
INNOVATIVE SERVICES	533	+0.3%	541	+1.9%	550	+3.1%	574	+5.1%	2,199	+2.6%	558	+4.6%	583	+7.8%	577	+4.9%
o/w Broadband	395	-0.0%	403	+1.3%	411	+3.9%	413	+4.9%	1,622	+2.5%	418	+5.7%	430	+6.8%	427	+3.9%
o/w Access	367	+0.4%	374	+1.7%	381	+4.2%	384	+5.3%	1,506	+2.9%	389	+6.1%	403	+7.7%	399	+4.7%
o/w Bundles Services	10	+12.0%	10	+5.6%	10	+2.2%	10	+1.5%	40	+5.1%	10	+2.1%	10	-2.1%	10	+0.1%
o/w Others	19	-12.0%	19	-7.2%	20	-0.7%	19	-1.5%	77	-5.5%	19	-0.8%	18	-5.0%	18	-8.8%
o/w Content	5	+10.8%	5	+8.5%	4	+0.2%	5	+8.6%	19	+7.0%	5	+12.7%	5	+4.8%	6	+28.2%
o/w ICT Service	133	+1.1%	134	+3.7%	135	+0.9%	156	+5.6%	558	+2.9%	135	+1.1%	148	+10.7%	145	+7.1%
Domestic Wholesale	606	-13.5%	586	-10.2%	583	-9.2%	540	-14.7%	2,316	-11.9%	560	-7.7%	549	-6.4%	550	-5.6%
TIS Group	301	+6.4%	300	-4.2%	304	-10.3%	339	+3.4%	1,244	-1.5%	310	+3.0%	325	+8.3%	336	+10.5%
Subs. Adj. and Other	-29	+21.7%	-27	+17.7%	-27	+17.0%	-25	+21.3%	-108	+19.5%	-26	+12.2%	-28	-3.3%	-23	+15.8%

			Domestic Mobile Results - Reported Figures
															UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's
Total number of lines ('000) (1)	30,996	-2.7%	30,660	-3.3%	30,374	-3.7%	30,350	-2.8%	30,350	-2.8%	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%
Churn Rate %	6.1%	-1.0pp	5.9%	-1.4pp	6.3%	-2.3pp	5.9%	-1.4pp	24.2%	-6.2pp	6.4%	0.3pp	5.5%	-0.4pp	5.8%	-0.5pp
Total User Broadband (mln of users)	8.7	+26.6%	9.2	+27.7%	9.6	+19.6%	10.1	+19.3%	10.1	+19.3%	10.5	+20.8%	10.8	+17.5%	11.2	+16.9%
Total User LTE (mln of users)	0.4	-	0.6	-	0.8	-	1.3	-	1.3	-	1.8	-	2.7	-	3.4	-
Volumes of traffic (mln of minutes) (2)	14,964	+7.7%	15,595	+10.2%	15,542	+8.2%	16,556	+9.5%	62,658	+8.9%	16,155	+8.0%	16,630	+6.6%	16,339	+5.1%
o/w Outgoing traffic volumes (mln of minutes) (3)	10,355	+1.8%	10,635	+5.0%	10,509	+3.9%	11,181	+6.1%	42,680	+4.2%	10,821	+4.5%	10,983	+3.3%	10,711	+1.9%
o/w Incoming traffic volumes (mln of minutes)	4,610	+24.1%	4,960	+23.3%	5,032	+18.4%	5,376	+17.4%	19,978	+20.6%	5,335	+15.7%	5,647	+13.9%	5,627	+11.8%
Usage Voce (min/line/month)(4)	189	+13.5%	200	+15.8%	202	+14.4%	218	+15.2%	202	+14.7%	214	+13.0%	223	+11.5%	220	+8.9%
Usage Dati (GB/users/month)	1.2	-7.3%	1.2	+0.3%	1.3	+26.1%	1.4	+24.5%	1.3	+10.8%	1.3	+14.3%	1.4	+15.1%	1.6	+18.3%
ARPU(4)	11.5	-12.6%	11.9	-10.6%	12.5	-3.0%	12.7	-2.2%	12.1	-7.2%	11.3	-1.3%	11.9	+0.2%	12.5	-0.2%
REVENUES (€ mln), Reported figures	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
TOTAL	1,175	-14.4%	1,264	-10.0%	1,284	-5.6%	1,368	-5.1%	5,091	-8.7%	1,151	-2.0%	1,236	-2.2%	1,303	+1.5%
SERVICES	1,099	-14.9%	1,138	-13.3%	1,189	-7.1%	1,183	-5.7%	4,608	-10.3%	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%
Traditional Services	713	-24.1%	726	-21.9%	727	-16.7%	695	-16.1%	2,861	-19.9%	621	-12.9%	622	-14.3%	639	-12.1%
o/w Outgoing voice (5)	530	-24.9%	531	-23.5%	536	-18.6%	501	-18.3%	2,098	-21.5%	463	-12.6%	455	-14.3%	461	-14.0%
o/w Incoming voice	52	-17.7%	56	-16.6%	57	+18.2%	59	+15.6%	224	-2.4%	58	+12.3%	62	+9.9%	65	+14.4%
o/w Messaging	132	-23.3%	139	-17.4%	134	-19.6%	135	-18.2%	540	-19.7%	100	-24.2%	106	-24.0%	113	-15.6%
Innovative Services	328	+9.9%	342	+8.4%	390	+16.6%	404	+13.1%	1,464	+12.1%	375	+14.4%	416	+21.8%	453	+16.0%
o/w Browsing	264	+12.9%	281	+11.5%	301	+11.7%	326	+10.9%	1,171	+11.7%	306	+16.0%	339	+20.7%	372	+23.8%
o/w Internet Content	64	-1.1%	61	-3.9%	90	+36.7%	78	+22.9%	293	+13.8%	69	+8.1%	77	+27.3%	80	-10.2%
Wholesale Services	58	+8.7%	69	+5.5%	72	-0.5%	83	+23.0%	283	+9.1%	57	-1.6%	71	+2.1%	79	+10.0%
Handsets	76	-5.7%	126	+35.1%	95	+18.8%	185	-1.2%	483	+9.3%	98	+29.0%	127	+0.1%	133	+39.3%

(2) Incoming+Outgoing Mobile Retail + Wholesale excluding Visitors (3) Roaming volumes not included (4) Net of visitors (5) Outgoing voice revenues include roaming revenues

			TIM Brasil Results - Reported Figures
	1Q14	Δ% yoy	2Q14	Δ% yoy	3Q14	Δ% yoy	4Q14	Δ% yoy	FY14	Δ% yoy	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy
KPI's - Mobile only
Estimated Total Penetration (%) (1)	135.3%		136.1%		137.1%		138.0%		138.0%		139.0%		138.2%		136.9%
(1) Market Share on total lines(%)	27.0%		26.9%	-0.3pp	26.9%	-0.3pp	27.0%	-0.1pp	27.0%	-0.1pp	26.7%		26.4%	-0.5pp	26.2%
Total Lines ('000) (1) (2)	73,917	+3.8%	74,203	+2.8%	74,877	+2.7%	75,721	+3.1%	75,721	3.1%	75,749	+2.5%	74,600	+0.5%	72,573	-3.1%
TOTAL ARPU (3)	18.0	-2.7%	17.3	-4.5%	17,4	-6.3%	18.0	-6.3%	17.7	-4.8%	16.7	-7.2%	16.1	-7.2%	16.4	-5.9%
TOTAL MOU net of visitors	140	-3.0%	137	-6.9%	136	-9.5%	130	-12.5%	136	-8.1%	120	-14.0%	119	-13.6%	119	-12.6%
MAIN RESULTS (IAS/IFRS, R\$ mln)	1Q14	Δ% yoy	2Q14	Δ% yoy	3Q14	Δ% yoy	4Q14	Δ% yoy	FY14	Δ% yoy	1Q15	Δ% yoy	2Q15	Δ% yoy	3Q15	Δ% yoy
REVENUES Reported	4,702	-0.2%	4,775	-3.4%	4,853	-4.5%	5,168	-0.3%	19,498	-2.1%	4,547	-3.3%	4,353	-8.8%	4,117	-15.2%
of which services	4,099	+0.3%	3,985	-2.0%	4,045	-3.9%	4,196	-3.4%	16,325	-2.3%	3,940	-3.9%	3,784	-5.0%	3,784	-6.5%
of which handsets	603	-3.4%	790	-10.1%	808	-7.8%	972	+15.6%	3,173	-1.5%	607	+0.7%	569	-28.0%	333	-58.8%
EBITDA Reported	1,316	+7.8%	1,329	+8.0%	1,330	+6.5%	1,566	+4.6%	5,541	+6.6%	1,337	+1.6%	1,260	-5.2%	1,285	-3.4%
EBITDA margin	28.0%	2,1pp	27.8%	2.9pp	27.4%	2.8pp	30.3%	1.4pp	28.4%	2.3pp	29.4%	1.4pp	28.9%	1.1pp	31.2%	3.8pp
Capex Reported	613	+30.4%	1,044	-7.0%	960	-18.4%	4,237	+284.0%	6,854	+77.1%	924	+50.7%	1,184	+13.4%	1,168	+21.7%
% on revenues	13.0%	3pp	21.9%	-0.8pp	19.8%	-3.3pp	82.0%	60.7pp	35.2%	15.8pp	20.3%	7.3pp	27.2%	5.3pp	28.4%	8.6pp
	1Q14	Δ% yoy	1H14	Δ% yoy	9M14	Δ% yoy	FY14	Δ% yoy	FY14	Δ% yoy	1Q15	Δ% yoy	1H15	Δ% yoy	9M15	Δ% yoy
Exchange rate AVG (R\$ vs. euro)	3.23981		3.14956		3.10365		3.12280		3.12280		3.22251		3.31144		3.52233

(1) Source ANATEL; only 3Q'15 figures preliminary TIM Brasil estimates.

(2) Includes company lines; the data of the periods under comparison have been appropriately restated.

(3) Gross of visitors

	3Q14				3Q15		Δ% yoy reported	Δ% yoy organic
Reported Figures (a)			Non Organic elements (b)	Organic figures (c=a+b)	Reported figures (d)		(d/a-1)	(d/c-1)
€ mln		Change in consolid. area	Exchange rate impact
REVENUES					REVENUES
Domestic	3,805		14	3,819	Domestic	3,752	(1.4)	(1.8)
o/w Wireline Domestic	2,718		14	2,732	o/w Wireline Domestic	2,645	(2.7)	(3.2)
o/w Mobile Domestic	1,284			1,284	o/w Mobile Domestic	1,303	1.5
Brasile	1,608		(402)	1,206	Brasile	1,008	(37.3)	(15.2)
TI Media	20			20	TI Media	20	0.0
Other Activities & Eliminations	(12) 5,421		(388)	(12) 5,033	Other Activities & Eliminations	-2	83.3	83.3
TI Group					TI Group	4,778	(11.9)	(5.1)
EBITDA Domestic	1,795		5	1,800	EBITDA Domestic	1,679	(6.5)	(6.7)
Brasile	441		(111)	330	Brasile	318	(27.9)	(3.4)
TI Media	8			8	TI Media	1	(87.5)	(87.5)
Other Activities & Eliminations	(1)			(1)	Other Activities & Eliminations	(15)	-
TI Group	2,243		(106)	2,137	TI Group	1,983	(11.6)	(7.2)
EBITDA Margin					EBITDA Margin
Domestic	47.2%			47.1%	Domestic	44.7%	-2.5 pp	-2.4 pp
Brasile	27.4%			27.4%	Brasile	31.5%	4.1 pp	4.1 pp
TI Media	40.0% 41.4%			40.0% 42.5%	TI Media	5.0% 41.5%	-35 pp 0.1 pp	-35 pp -1 pp
TI Group					TI Group
EBIT Domestic	982		3	985	EBIT Domestic	868	(11.6)	(11.9)
Brasile	188		(48)	140	Brasile	169	(10.1)	25.5
TI Media	0			0	TI Media	(5)	-
Other Activities & Eliminations	(2)			(2)	Other Activities & Eliminations	(14)	-
TI Group	1,168		(45)	1,123	TI Group	1,018	(12.8)	(9.3)
EBIT Margin					EBIT Margin
Domestic	25.8%			25.8%	Domestic	23.1%	-2.7 pp	-2.7 pp
Brasile	11.7%			11.7%	Brasile	16.8%	5.1 pp	5.1 pp
TI Media	0.0%			0.0%	TI Media	-25.0%	-25 pp	-25 pp
TI Group	21.5%			22.3%	TI Group	21.3%	-0.2 pp	-1 pp

			Domestic Business Results - Reported Figures
															UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's ('000)
Wireline
Physical accesses	13,027	-5.4%	12,828	-5.4%	12,656	-5.4%	12,480	-5.5%	12,480	-5.5%	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%
Broadband (retail+wholesale)	8,761	-1.3%	8,757	-0.4%	8,743	+0.1%	8,750	+0.1%	8,750	+0.1%	8,784	+0.3%	8,821	+0.7%	8,839	+1.1%
Mobile
Total lines	30,996	-2.7%	30,660	-3.3%	30,374	-3.7%	30,350	-2.8%	30,350	-2.8%	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%
€ mln	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
REVENUES	3,728	-8.3%	3,803	-8.2%	3,805	-5.0%	3,967	-5.0%	15,303	-6.6%	3,631	-2.6%	3,744	-1.6%	3,752	-1.4%
o/w Services	3,554	-8.8%	3,567	-8.9%	3,594	-6.2%	3,619	-4.4%	14,334	-7.1%	3,435	-3.3%	3,505	-1.7%	3,539	-1.5%
o/w Equipments	174	+1.9%	236	+3.9%	211	+21.6%	348	-10.6%	969	+0.9%	196	+12.3%	239	+1.3%	213	+0.7%
o/w Domestic Wireline	2,771	-6.9%	2,737	-8.3%	2,718	-6.2%	2,773	-5.5%	10,999	-6.7%	2,657	-4.1%	2,688	-1.8%	2,645	-2.7%
o/w Services	2,715	-7.4%	2,664	-8.6%	2,639	-7.2%	2,655	-5.3%	10,672	-7.1%	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%
o/w Equipments	56	+23.7%	73	+1.9%	79	+47.6%	118	-10.6%	327	+7.8%	62	+9.1%	74	+1.4%	53	-32.5%
o/w Domestic Mobile	1,175	-14.4%	1,264	-10.0%	1,284	-5.6%	1,368	-5.1%	5,091	-8.7%	1,151	-2.0%	1,236	-2.2%	1,303	+1.5%
o/w Services	1,099	-14.9%	1,138	-13.3%	1,189	-7.1%	1,183	-5.7%	4,608	-10.3%	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%
o/w Equipments	76	-5.7%	126	+35.1%	95	+18.9%	185	-1.2%	483	+9.3%	98	+29.0%	127	+0.1%	133	+39.3%
EBITDA	1,792	-8.2%	1,709	-7.5%	1,795	-11.6%	1,702	-10.9%	6,998	-9.6%	1,610	-10.2%	1,236	-27.7%	1,679	-6.5%
EBITDA Margin	48.1%		44.9%		47.2%		42.9%		45.7%		44.3%		33.0%		44.7%
Capex	493	-14.9%	684	-10.9%	615	-9.3%	991	-1.5%	2,783	-8.2%	676	+37.1%	830	+21.3%	791	+28.6%
% on revenues	13.2%		18.0%		16.2%		25.0%		18.2%		18.6%		22.2%		21.1%
Headcount at period-end ('000)	53,302	-1.1%	53,224	-0.9%	53,249	-0.7%	53,076	-0.6%	53,076	-0.6%	52,965	-0.6%	52,825	-0.7%	52,726	-1.0%

					Domestic Wireline Results - Reported Figures
														UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's
Physical accesses ('000)	13,027	-5.4%	12,828	-5.4%	12,656	-5.4%	12,480	-5.5%	12,480	-5.5%	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%
OLO Access (on TI infrastructure)	7,211	-0.4%	7,258	+0.3%	7,167	+0.0%	7,224	+0.8%	7,224	+0.8%	7,297	+1.2%	7,375	+1.6%	7,392	+3.1%
o/w ULL	5,394	+1.5%	5,461	+2.1%	5,363	+0.7%	5,404	+0.9%	5,404	+0.9%	5,460	+1.2%	5,511	+0.9%	5,517	+2.9%
o/w Virtual ULL	28	-14.3%	27	-13.1%	25	-17.3%	24	-14.7%	24	-14.7%	26	-6.5%	27	+1.4%	29	+16.7%
o/w Wholesale Line Rental	660	-14.4%	634	-14.3%	609	-13.5%	588	-12.4%	588	-12.4%	565	-14.4%	547	-13.7%	523	-14.1%
o/w Naked	1,125	+0.3%	1,128	+1.3%	1,156	+4.8%	1,185	+6.4%	1,185	+6.4%	1,207	+7.3%	1,213	+7.5%	1,218	+5.4%
o/w NGN	4	-	8	-	14	-	24	-	24	-	39	-	76	-	105	-
TI Retail Broadband Accesses ('000)	6,933	-0.7%	6,939	+0.1%	6,932	+0.6%	6,921	+0.1%	6,921	+0.1%	6,945	+0.2%	6,971	+0.5%	6,984	+0.7%
o/w Business	1,544	-0.7%	1,545	0.7%	1,552	1.5%	1,551	1.0%	1,551	1.0%	1,544	0.0%	1,522	-1.5%	1,505	-3.1%
o/w Consumer	5,389	-0.8%	5,393	-0.1%	5,379	+0.3%	5,370	-0.2%	5,370	-0.2%	5,401	+0.2%	5,450	+1.0%	5,479	+1.8%
o/w NGN	45	-	103	-	151	-	231	-	231	-	290	-	374	-	435	-
% flat offers on TI total portfolio (Consumer+Business)	91%	1.5pp	91%	1.6pp	91%	1.7pp	92%	1.7pp	92%	1.7pp	92%	1.8pp	93%	1.9pp	93%	1.9pp
BroadBand Accesses Wholesale ('000)	1,828	-3.4%	1,819	-2.3%	1,811	-1.6%	1,829	+0.2%	1,829	+0.2%	1,839	+0.6%	1,850	+1.7%	1,855	+2.4%
BB Arpu (euro/mese)	19.2	+1.9%	19.6	+2.5%	20.0	+4.1%	20.2	+5.2%	19.8	+3.4%	20.4	+6.0%	20.9	+6.7%	20.7	+3.7%
REVENUES(€ mln)	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
TOTAL	2,771	-6.9%	2,737	-8.3%	2,718	-6.2%	2,773	-5.5%	10,999	-6.7%	2,657	-4.1%	2,688	-1.8%	2,645	-2.7%
o/w Services	2,715	-7.4%	2,664	-8.6%	2,639	-7.2%	2,655	-5.3%	10,672	-7.1%	2,595	-4.4%	2,614	-1.9%	2,592	-1.8%
o/w Equipments	56	+23.7%	73	+1.9%	79	+47.8%	118	-10.6%	327	+7.8%	62	+9.1%	74	+1.4%	53	-32.5%
Voice	1,128	-10.9%	1,100	-12.5%	1,062	-10.2%	1,083	-8.6%	4,373	-10.6%	1,045	-7.4%	1,024	-6.9%	984	-7.4%
o/w Traffic	377	-21.7%	366	-21.4%	342	-16.1%	375	-8.9%	1,460	-17.3%	353	-6.3%	359	-1.9%	348	+1.6%
o/w Access	665	-4.9%	646	-8.5%	631	-9.3%	620	-9.0%	2,562	-7.9%	612	-8.0%	586	-9.3%	562	-10.9%
o/w voice VAS	32	-4.0%	33	2.0%	34	5.3%	33	-5.4%	133	-0.6%	30	-6.7%	29	-12.9%	28	-18.0%
o/w Handsets	53	5.6%	54	3.7%	55	15.2%	55	-3.2%	218	4.9%	49	-7.8%	50	-8.2%	46	-16.4%
Internet	405	-0.1%	412	+1.3%	420	+3.7%	423	+4.6%	1,659	+2.4%	426	+5.3%	438	+6.4%	436	+3.9%
o/w BroadBand	398	+0.2%	406	+1.5%	413	+3.9%	416	+4.6%	1,633	+2.6%	420	+5.4%	432	+6.6%	429	+3.8%
o/w Internet Content	5	-8.1%	5	-4.3%	5	-1.9%	6	9.8%	22	-1.3%	6	5.9%	5	-5.3%	6	+13.4%
o/w Narrowband	1	-36.4%	1	-34.3%	1	-29.9%	1	-25.2%	4	-31.9%	1	-21.2%	1	-19.7%	1	-19.3%
Business Data	314	+0.0%	323	-2.0%	330	+3.2%	383	-3.5%	1,350	-0.7%	314	-0.3%	344	+6.3%	310	-6.1%
o/w ICT	170	+4.6%	178	-1.0%	187	+15.3%	226	-2.0%	761	+3.5%	176	+3.7%	188	+5.5%	177	-5.2%
o/w data transmission	102	-4.4%	100	-1.6%	99	-8.4%	98	-6.1%	399	-5.1%	95	-6.9%	97	-2.7%	89	-9.7%
o/w Leased lines & other	42	-6.1%	45	-6.3%	44	-11.5%	59	-4.3%	190	-6.9%	42		59	+29.7%	43	-1.8%
Domestic Wholesale	606	-13.5%	586	-10.2%	583	-9.2%	540	-14.7%	2,316	-11.9%	560	-7.7%	549	-6.4%	552	-5.4%
International Wholesale	227	+11.5%	228	-3.1%	230	-11.7%	258	+5.0%	943	-0.2%	231	+1.6%	242	+6.0%	255	+11.0%
Subs. Adj. and Other	90	+4.2%	88	-15.2%	93	+6.1%	87	+22.0%	359	+2.6%	81	-9.7%	92	+4.0%	109	+16.5%

			Domestic Mobile Results - Reported Figures
												UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
KPI's
Total number of lines ('000) (1)	30,996	-2.7%	30,660	-3.3%	30,374	-3.7%	30,350	-2.8%	30,350	-2.8%	30,140	-2.8%	30,075	-1.9%	30,023	-1.2%
Churn Rate %	6.1%	-1.0pp	5.9%	-1.4pp	6.3%	-2.3pp	5.9%	-1.4pp	24.2%	-6.2pp	6.4%	0.3pp	5.5%	-0.4pp	5.8%	-0.5pp
Total User Broadband (mln of users)	8.7	+26.6%	9.2	+27.7%	9.6	+19.6%	10.1	+19.3%	10.1	+19.3%	10.5	+20.8%	10.8	+17.5%	11.2	+16.9%
Total User LTE (mln of users)	0.4	-	0.6	-	0.8	-	1.3	-	1.3	-	1.8	-	2.7	-	3.4	-
Volumes of traffic (mln of minutes) (2)	14,964	+7.7%	15,595	+10.2%	15,542	+8.2%	16,556	+9.5%	62,658	+8.9%	16,155	+8.0%	16,630	+6.6%	16,339	+5.1%
o/w Outgoing traffic volumes (mln of minutes) (3)	10,355	+1.8%	10,635	+5.0%	10,509	+3.9%	11,181	+6.1%	42,680	+4.2%	10,821	+4.5%	10,983	+3.3%	10,711	+1.9%
o/w Incoming traffic volumes (mln of minutes)	4,610	+24.1%	4,960	+23.3%	5,032	+18.4%	5,376	+17.4%	19,978	+20.6%	5,335	+15.7%	5,647	+13.9%	5,627	+11.8%
Usage Voce (min/line/month)(4)	189	+13.5%	200	+15.8%	202	+14.4%	218	+15.2%	202	+14.7%	214	+13.0%	223	+11.5%	220	+8.9%
Usage Dati (GB/users/month)	1.2	-7.3%	1.2	+0.3%	1.3	+26.1%	1.4	+24.5%	1.3	+10.8%	1.3	+14.3%	1.4	+15.1%	1.6	+18.3%
ARPU(4)	11.5	-12.6%	11.9	-10.6%	12.5	-3.0%	12.7	-2.2%	12.1	-7.2%	11.3	-1.3%	11.9	+0.2%	12.5	-0.2%
REVENUES (€ mln), Reported figures	1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy
TOTAL	1,175	-14.4%	1,264	-10.0%	1,284	-5.6%	1,368	-5.1%	5,091	-8.7%	1,151	-2.0%	1,236	-2.2%	1,303	+1.5%
Service Revenues	1,099	-14.9%	1,138	-13.3%	1,189	-7.1%	1,183	-5.7%	4,608	-10.3%	1,053	-4.2%	1,109	-2.5%	1,170	-1.5%
o/w Business Generated	989	-15.8%	1,012	-14.1%	1,060	-8.6%	1,040	-8.4%	4,101	-11.8%	938	-5.2%	977	-3.5%	1,026	-3.2%
o/w Outgoing voice (5)	530	-24.9%	531	-23.5%	536	-18.5%	501	-18.3%	2,098	-21.5%	463	-12.6%	455	-14.3%	461	-14.0%
o/w VAS (6)	460	-2.3%	481	-0.6%	524	+4.6%	539	+3.2%	2,003	+1.3%	475	+3.4%	522	+8.5%	566	+7.9%
o/w messaging	132	-23.3%	139	-17.4%	134	-19.6%	135	-18.2%	540	-19.7%	100	-24.2%	106	-24.0%	113	-15.6%
o/w interactive	328	+9.9%	342	+8.4%	390	+16.5%	404	+13.1%	1,464	+12.1%	375	+14.4%	416	+21.8%	453	+16.0%
o/w Browsing	264	+12.9%	281	+11.5%	301	+11.8%	326	+10.9%	1,171	+11.7%	306	+16.0%	339	+20.7%	372	+23.8%
o/w Internet Content	64	-1.1%	61	-3.9%	90	+35.7%	78	+22.9%	293	+13.8%	69	+8.1%	77	+27.3%	80	-10.2%
o/w Business Received	110	-5.5%	125	-5.6%	129	+7.3%	143	+19.8%	507	+3.7%	115	+5.0%	132	+5.6%	144	+12.0%
o/w Incoming voice	52	-17.7%	56	-16.6%	57	+18.2%	59	+15.6%	224	-2.4%	58	+12.3%	62	+9.9%	65	+14.4%
o/w Visitors and others	58	+8.7%	69	+5.6%	72	+0.0%	83	+22.9%	283	+9.1%	57	-1.6%	71	+2.1%	79	+10.0%
Handsets	76	-5.7%	126	+35.1%	95	+18.9%	185	-1.2%	483	+9.3%	98	+29.0%	127	+0.1%	133	+39.3%
VAS on Service revenues (%)	41.8%	5.4pp	42.3%	5.4pp	44.1%	4.9pp	45.5%	3.9pp	43.5%	5.0pp	45.1%	3.3pp	47.1%	4.8pp	48.3%	4.2pp

(2) Incoming+Outgoing Mobile Retail + Wholesale excluding Visitors

(3) Roaming volumes not included

(4) Net of visitors

(5) Outgoing voice revenues include roaming revenues

(6) Includes other wholesale revenues