Telecom Italia Rsp — Earnings Release 2015

Feb 16, 2016

Dear Madam/Sir,

Please find attached the Telecom Italia Group File with Financial Data and Key Performance Indicators on 4Q'15/ FY'15 Preliminary Results.

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 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 ease 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:

• Further improvement of Service Revenues growth in 4Q'15 +0.1% YoY: +1.6pp vs 3Q'15
• Positive performance of Total Revenues: +0.7% YoY in 4Q'15
• Calling Customer base growth, thanks to a better competitive positioning: +101K QoQ
• ARPU up YoY: 12.8 €/month in 4Q'15 (+0.8% YoY) from € 12.5 in 3Q'15
• Total BB users steady growing QoQ: +296k in 4Q'15, now at 11.5 mln users. LTE users increased by +962k QoQ, now at 4.4 mln users

DOMESTIC FIXED:

• Fixed Service Revenues at -3.1% YoY in 4Q'15, affected by comparison items: YoY performance factors in December 2015 Wholesale price revision and November 2014 monthly rental fee increase
• Solid performance in Total BB Net Adds QoQ: +40k in 4Q'15 reaching again over 7 mln users
• Further acceleration in Fiber customer base growth: +104k QoQ in 4Q'15, reaching 539k Retail users at the end of 2015 (+133%)
• ARPU BB further improved thanks to the development of flat-rate plans/bundles, re-pricing and customers upgrading to Fiber: 21.2 €/month in 4Q'15 (+4.9% YoY).

DOMESTIC REVENUES:

Performance improving on Domestic Service Revenues: -1.1% YoY in 4Q'15 vs -1.5% YoY in 3Q'15, -1.7% YoY in 2Q'15 and -3.3% YoY in 1Q'15.

DOMESTIC EBITDA:

Reported EBITDA performance still impacted by non-recurring items (582 mln € in 4Q'15): 1,042 € mln in 4Q'15 (-38.8% YoY).

Excluding the non-recurring items, Organic EBITDA performance was -4.4% YoY in 4Q'15 vs -5.1% in 9M15.

The following chart shows a reconciliation table between Domestic Reported and Organic EBITDA:

			2014					2015					$\Delta$ % YoY
	IQ	IJQ	ШQ	IVQ	FY	IQ	HQ	ШQ	IVQ	FY	IO.	ШQ	ШQ	IVQ	FY
Revenues Reported	3.728	3.803	3.805	3.967	15,303	3.631	3.744	3.752	3.874	15,001	$-2,6%$	$-1,6%$	$-1.4%$	$-2,3%$	$-2,0%$
Service	3.554	3.567	3.594	3.619	14.334	3.435	3.505	3.539	3.578	14.058	-3.3%	$-1.7%$	$-1.5%$	$-1.1%$	$-1.9%$
Equipment	174	236	211	348	969	196	239	213	296	943	12.3%	1.3%	0.7%	$-1.5.0%$	$-2.7%$
Opex Reported	(1.936)	(2.094)	(2.010)	(2265)	(8305)	(2021)	(2.508)	(2.073)	(2.832)	(9.434)		$-4.4\% -19.8\% -3.1\% -25.0\%$			$-13.6%$
EBITDA Reported	1792	1.709	1.795	1.702	6.998	1610	1236	1.679	1.042	5.567		$-10,2\% -27,7\% -6,5\% -38,8\%$			$-20.4%$
Revenues Organic	3.742	3.819	3.819	3.979	15,359	3.631	3.744	3.752	3.874	15.001	-3.0%	$-2.0%$	$-1.5%$	$-2,6%$	$-2,3%$
Opex Organic net non recurring items	(1.945)	(2.176)	(2.019)	(2.281)	(8.421)	(2021)	(2.115)	(2.020)	(2.250)	(8.406)	-3,9%	2,8%	0,0%	1,4%	0,2%
EBITDA Organic net non recurring items	1797	1.643	1.800	1.698	6.938	1.610	1629	1.732	1.624	6.595		$-10,4\% -0.9\%$	-3.8%	$-4.4%$	4,9%
o/w Non Recurring Items	(5)	66	(5)	4	60		(393)	(53)	(582)	(1.028)
Exchange Rate Fluctuation	(5)	(5)	(5)	(4)	(19)
Release TIS/OLI provisioning		72	2	14	88
Employee reduction plan			(1)	(12)	(13)	$\blacksquare$	(24)	(19)	(386)	(429)
Provisions for risks and other costs and settlements		(1)	(1)	6	4	$\blacksquare$	(369)	(34)	(196)	(599)
Other Discontinuities	60	(41)	(27)	(27)	(35)	(43)	(9)	(38)	(68)	(158)					(123)
Labour cost discontinuities	19	٠	٠	18	37	(23)	(18)	(38)	(37)	(116)					(154)
Other one-off items	41	(41)	(27)	(45)	(72)	(20)	э	$\overline{\phantom{a}}$	(31)	(42)
EBITDA Organic Underlying	1.736.7	1.684	1.827	1.725	6.973	1652.8	1638	1.770	1.692	6.753	$-4.8%$	$-2.7%$	$-3.1%$	$-1.9%$	$-3.2%$

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 Capex. Total FY Domestic Capex stood at 3.9 bln€, +1.1bln€ vs FY 2014, incorporating also Licences and Special Projects (Real Estate, Equivalence)

• Total FY NGN Capex was 0.9 bln€, and
• LTE Capex 0.4 bln€.

BRAZIL

Financial Highlights

• Total Revenues impacted by lower handset sales and by challenging macro and regulatory environments: 4Q'15 -20.2% YoY (-5pp vs 3Q'15)
• Drop in Handset Revenues in 4Q'15: -74.7% YoY (-15.9pp vs 3Q'15), due to a sizable reduction of product sales without negatively impacting on margin.
• Mobile Service Revenues decline due to further MTR cut and Voice/SMS volume decrease: 4Q'15 -8.5% YoY (-1.4pp vs 3Q'15). Excluding MTR cut, Mobile Service Revenues declined by -4.6% YoY (-1.5pp vs 3Q'15)
• Business Generated Revenues were flat in FY2015, showing a continuous data uptake, with Innovative Services growing at a solid double-digit pace (FY'15 +35.0% YoY, 4Q'15: +21.5% YoY)
• Fixed Service Revenues confirm their growth: FY'15 +13.1% YoY and 4Q'15 + 16.4% YoY
• EBITDA declined low-single digit supported by cost control and efficiencies: FY15 -3.3% YoY (4Q15: -5.7% YoY)
• EBITDA margin expansion to 31.3% in 2015 (+2.9pp vs. 28.4% in 2014), with a remarkable progression in 4Q'15 at 35.8% (+5.5pp YoY )
• Total Capex (excl. spectrum) increased in FY'15 by +18.5% YoY, reaching a 27.2% level on revenues (+7pp YoY)

Operational Highlights

• Confirming #1 position in 4G coverage: 411 cities, up from 45 in 2014. 59% of urban population already covered with 4G.
• 4G users reached over 7 million, or near 11% of total subscribers
• Network fast evolution: Fiber network reached more than 70,000 km with high capacity backhaul transporting 70% of total data traffic
• The new portfolio is already showing signs of success: despite it is just two months from its launch, the Company posted positive MNP figures in all segments (postpaid + controle), reverting years of negative performance.
• Mobile ARPU reached R\$ 16.7 in 2015, down 5.6% YoY, largely impacted by MTR cut and the reduction in voice usage. As for 4Q15, Mobile ARPU came at R\$17.6 (-1.8% YoY) showing an early sign of recovery.

GROUP NET DEBT:

• Net Financial Position stood at 27.3 bln € at FY'15, up +0.6 bln € YoY, due to IAS17 for approximately 1.5 bln €, of which: 1.2 bln € for Real Estate Project and 0.3 bln € for Brazilian Towers Project.
• Excluding IAS17 non-monetary effect, the reduction of Net Debt in 2015 would have been -0.9 bln € YoY.

4Q'15 & FY'15 Financial and operating data *

Index click on the links below Disclaimer Key fin data by BU YTD Key Financial data by BU quarter Domestic Business Results Domestic Wireline Results TIM Brasil Results Website link: Rep&Org Telecom Italia Group

* Preliminary financial results 4Q'15/FY'15

TELECOM ITALIA INVESTOR RELATIONS

Domestic Mobile Results investor_relations@telecomitalia.it

Telecom Italia Investor Relations

Disclaimer

The financial and operating data have been extracted or derived, with the exception of some data, from the Telecom Italia 2014 Annual Report, the 2015 Interim Financial Reports and the 2015 preliminary financial results of the Telecom Italia Group which were prepared (including the data of the prior year/periods), where applicable, in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the European Union (designated as "IFRS").

In particular, the accounting policies and consolidation principles adopted in the preparation of the preliminary financial results for the 2015 FY have been applied on a basis consistent with those adopted in the Annual 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 2015 preliminary financial results.

In addition, the 2015 preliminary financial results have not been verified by the independent auditors.

Starting from the fourth quarter 2013, the Sofora - Telecom Argentina group is classified as a disposal group (Discontinued operations/Non-current assets held for sale) and therefore the Sofora - Telecom Argentina group is no longer separately presented as a business unit.

Key financial data by Business Unit YTD

UNAUDITED FIGURES

REVENUES (€ mln)	1Q14	1H14	9M14	FY14	1Q15	1H15	9M15	FY15
Domestic	3,728	7,531	11,336	15,303	3,631	7,375	11,127	15,001
o/w Wireline Domestic	2,771	5,508	8,226	10,999	2,657	5,345	7,990	10,654
o/w Mobile Domestic	1,175	2,439	3,723	5,091	1,151	2,387	3,690	5,068
Brazil	1,451	3,009	4,617	6,244	1,411	2,688	3,696	4,636
TI Media	15	31	51	71	21	42	62	82
Other activities & Elim.	(6)	(20)	(32)	(45)	(10)	(8)	(10)	(1)
TI Group	5,188	10,551	15,972	21,573	5,053	10,097	14,875	19,718
EBITDA Reported (€ mln)
Domestic	1,792	3,501	5,296	6,998	1,610	2,846	4,525	5,567
Brazil	406	840	1,281	1,774	415	784	1,102	1,449
TI Media	6	11	19	25	9	20	21	37
Other activities & Elim.	(4)	(7)	(8)	(11)	(3)	(17)	(32)	(49)
TI Group	2,200	4,345	6,588	8,786	2,031	3,633	5,616	7,004
CAPEX (€ mln)
Domestic	493	1,177	1,792	2,783	676	1,506	2,297	3,900
Brazil	189	526	843	2,195	287	637	930	1,289
TI Media	2	4	5	6	1	3	5	8
Other, Elim & Adj	0	0	0	0	0	0	1	0
TI Group	684	1,707	2,640	4,984	964	2,146	3,233	5,197
CAPEX ON SALES (%)
Domestic	13.2%	15.6%	15.8%	18.2%	18.6%	20.4%	20.6%	26.0%
Brazil	13.0%	17.5%	18.3%	35.2%	20.3%	23.7%	25.2%	27.8%
TI Media	13.3%	12.9%	9.8%	8.5%	4.8%	7.1%	8.1%	9.8%
TI Group	13.2%	16.2%	16.5%	23.1%	19.1%	21.3%	21.7%	26.4%

									UNAUDITED FIGURES
REVENUES (€ mln)	1Q14	2Q14	3Q14	4Q14	FY14	1Q15	2Q15	3Q15	4Q15	FY15
Domestic	3,728	3,803	3,805	3,967	15,303	3,631	3,744	3,752	3,874	15,001
o/w Wireline Domestic	2,771	2,737	2,718	2,773	10,999	2,657	2,688	2,645	2,664	10,654
o/w Mobile Domestic	1,175	1,264	1,284	1,368	5,091	1,151	1,236	1,303	1,378	5,068
Brasile	1,451	1,558	1,608	1,627	6,244	1,411	1,277	1,008	940	4,636
TI Media	15	16	20	20	71	21	21	20	20	82
Other activities & Elim.	(6)	(14)	(12)	(13)	(45)	(10)	2	(2)	9	-1
TI Group	5,188	5,363	5,421	5,601	21,573	5,053	5,044	4,778	4,843	19,718
EBITDA Reported (€ mln)
Domestic	1,792	1,709	1,795	1,702	6,998	1,610	1,236	1,679	1,042	5,567
Brasile	406	434	441	493	1,774	415	369	318	347	1,449
TI Media	6	5	8	6	25	9	11	1	16	37
Other activities & Elim.	(4)	(3)	(1)	(3)	(11)	(3)	(14)	(15)	(17)	(49)
TI Group	2,200	2,145	2,243	2,198	8,786	2,031	1,602	1,983	1,388	7,004
EBITDA Margin Reported
Domestic	48.1%	44.9%	47.2%	42.9%	45.7%	44.3%	33.0%	44.7%	26.9%	37.1%
Brasile	28.0%	27.9%	27.4%	30.3%	28.4%	29.4%	28.9%	31.5%	36.9%	31.3%
TI Media	40.0%	31.3%	40.0%	30.0%	35.2%	42.9%	52.4%	5.0%	80.0%	45.1%
TI Group	42.4%	40.0%	41.4%	39.2%	40.7%	40.2%	31.8%	41.5%	28.7%	35.5%
CAPEX (€ mln)
Domestic	493	684	615	991	2,783	676	830	791	1,603	3,900
Brasile	189	337	317	1,352	2,195	287	350	293	359	1,289
TI Media	2	2	1	1	6	1	2	2	3
Elim & Adj	0	0	0	0	0	0	0	1	-1
TI Group	684	1,023	933	2,344	4,984	964	1,182	1,087	1,964	5,197
CAPEX ON SALES (%)
Domestic	13.2%	18.0%	16.2%	25.0%	18.2%	18.6%	22.2%	21.1%	41.4%	26.0%
Brasile	13.0%	21.6%	19.7%	83.1%	35.2%	20.3%	27.4%	29.1%	38.2%	27.8%
TI Media	13.3%	12.5%	5.0%	5.0%	8.5%	4.8%	9.5%	10.0%	15.0%	9.8%
TI Group	13.2%	19.1%	17.2%	41.8%	23.1%	19.1%	23.4%	22.8%	40.6%	26.4%

																		UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	11,742	-5.9%	11,742	-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%	8,890	1.6%	8,890	1.6%
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%	30,007	-1.1%	30,007	-1.1%
€ mln	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	3,874	-2.3%	15,001	-2.0%
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%	3,578	-1.1%	14,058	-1.9%
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%	296	-15.0%	943	-2.7%
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%	1,184	0.1%	4,517	-2.0%
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%	621	-10.6%	2,503	-12.5%
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%	484	19.9%	1,728	18.1%
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%	78	-6.2%	286	0.9%
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%	2,572	-3.1%	10,372	-2.8%
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%	1,109	-9.6%	4,638	-7.6%
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%	596	3.8%	2,314	5.2%
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%	546	1.2%	2,205	-4.8%
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%	343	1.2%	1,314	5.6%
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%	-23	7.6%	-99	8.2%
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%	-177	18.9%	-831	12.2%
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%	1,042	-38.8%	5,567	-20.4%
EBITDA Margin	48.1%		44.9%		47.2%		42.9%		45.7%		44.3%		33.0%		44.7%		26.9%		37.1%
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%	1,603	61.8%	3,900	40.1%
% on revenues	13.2%		18.0%		16.2%		25.0%		18.2%		18.6%		22.2%		21.1%		41.4%		26.0%
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%	52,644	-0.8%	52,644	-0.8%

	Domestic Wireline Results - Reported Figures
																		UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	11,742	-5.9%	11,742	-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%	7,467	3.4%	7,467	3.4%
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%	5,573	3.1%	5,573	3.1%
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%	28	17.4%	28	17.4%
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%	497	-15.4%	497	-15.4%
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%	1,230	3.8%	1,230	3.8%
o/w NGN	4	-	8	-	14	-	24	-	24	-	39	-	76	-	105	-	139	-	139	-
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%	7,023	1.5%	7,023	1.5%
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%	1,488	-4.1%	1,488	-4.1%
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%	5,535	3.1%	5,535	3.1%
o/w NGN	45	-	103	-	151	-	231	-	231	-	290	-	374	-	435	-	538	-	538	-
% 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	94%	1.9pp	94%	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%	1,867	2.1%	1,867	2.1%
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%	21.2	4.9%	20.8	5.3%
REVENUES(€ mln)	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	2,664	-3.9%	10,654	-3.1%
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%	2,572	-3.1%	10,372	-2.8%
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%	92	-21.7%	282	-13.8%
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%	1,109	-9.6%	4,638	-7.6%
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%	944	-11.9%	3,975	-8.5%
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%	339	-9.5%	1,399	-4.1%
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%	539	-13.0%	2,299	-10.3%
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%	27	-17.1%	115	-13.7%
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%	38	-13.2%	161	-13.9%
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%	165	6.9%	663	-2.3%
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%	117	-4.9%	465	-6.4%
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%	48	53.1%	198	9.0%
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%	596	3.8%	2,314	5.2%
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%	437	5.8%	1,712	5.5%
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%	410	6.7%	1,600	6.3%
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%	9	-5.9%	39	-1.5%
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%	18	-6.6%	72	-5.4%
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%	4	-13.1%	20	7.5%
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%	155	-0.9%	582	4.3%
o/w Cloud services	28	11.2%	31	17.5%	32	23.9%	40	33.7%	131	22.0%	39	37.4%	42	36.2%	39	21.2%	44	9.6%	164	24.7%
o/w Traditional ICT	142	3.3%	147	-4.2%	155	13.7%	186	-7.4%	630	0.3%	137	-3.1%	146	-1.0%	139	-10.6%	173	-7.0%	595	-5.6%
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%	546	1.2%	2,205	-4.8%
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%	343	1.2%	1,314	5.6%
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%	-23	7.6%	-99	8.2%

	Domestic Mobile Results - Reported Figures
																			UNAUDITED FIGURES
	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	30,007	-1.1%	30,007	-1.1%
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	5.7%	-0.1pp	23.4%	-0.7pp
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%	11.5	14.3%	11.5	14.3%
Total User LTE (mln of users)	0.4	-	0.6	-	0.8	-	1.3	-	1.3	-	1.8	-	2.7	-	3.4	-	4.4	-	4.4	-
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%	16,998	2.7%	66,122	5.5%
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%	11,096	-0.8%	43,611	2.2%
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%	5,902	9.8%	22,512	12.7%
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%	232	6.2%	222	9.8%
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%	1.6	15.9%	1.5	15.9%
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%	12.8	0.8%	12.1	-0.1%
REVENUES (€ mln), Reported figures	1Q14	D% yoy	2Q14	h% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	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%	1,378	0.7%	5,068	-0.5%
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%	1,184	0.1%	4,517	-2.0%
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%	621	-10.6%	2,503	-12.5%
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%	432	-13.8%	1,810	-13.7%
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%	69	16.2%	254	13.3%
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%	120	-10.6%	439	-18.6%
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%	484	19.9%	1,728	18.1%
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%	392	20.5%	1,409	20.3%
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%	92	17.4%	319	9.0%
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%	78	-6.2%	286	0.9%
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%	194	4.8%	551	14.1%
(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	4Q15	Δ% yoy	FY15	Δ% yoy
KPI's - Mobile only
Estimated Total Penetration (%) (1)	135.3%		136.1%		137.1%		138.0%		138.0%		139.0%		138.2%		134.8%		125.7%		125.7%
(1) Market Share on total lines(%)	27.0%	0.0pp	26.9%	-0.3pp	26.9%	-0.3pp	27.0%	-0.1pp	27.0%	-0.1pp	26.7%		26.4%	-0.5pp	26.3%		25.7%	-1.3pp	25.7%	-1.3pp
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%	66,234	-12.5%	66,234	-12.5%
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%	17.6	-1.8%	16.7	-5.6%
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%	120	-7.6%	120	-12.0%
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	4Q15	Δ% yoy	FY15	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%	4,122	-20.2%	17,139	-12.1%
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%	3,876	-7.6%	15,384	-5.8%
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%	246	-74.7%	1,755	-44.7%
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%	1,476	-5.7%	5,358	-3.3%
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	35.8%	5.5pp	31.3%	2.9pp
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%	1,488	-64.9%	4,764	-30.5%
% 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	36.1%	-45.9pp	27.8%	-7.4pp
	1Q14	Δ% yoy	1H14	Δ% yoy	9M14	Δ% yoy	FY14	Δ% yoy	FY14	Δ% yoy	1Q15	Δ% yoy	1H15	Δ% yoy	9M15	Δ% yoy	FY15	Δ% yoy	FY15	Δ% yoy
Exchange rate AVG (R\$ vs. euro)	3.23981		3.14956		3.10365		3.12280		3.12280		3.22251		3.31144		3.52233		3.69727		3.69727
(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

								UNAUDITED FIGURES
	4Q'14				4Q'15		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	3,967		12	3,979	Domestic	3,874	(2.3)	(2.6)
o/w Wireline Domestic	2,773		12	2,785	o/w Wireline Domestic	2,664	(3.9)	(4.3)
o/w Mobile Domestic	1,368			1,368	o/w Mobile Domestic	1,378	0.7	0.7
Brasile	1,627		(421)	1,206	Brasile	940	(42.2)	(20.2)
TI Media	20			20	TI Media	20	0.0	0.0
Other Activities & Eliminations	(13)			(13)	Other Activities & Eliminations	9	-
TI Group	5,601		(409)	5,192	TI Group	4,843	(13.5)	(6.7)
EBITDA					EBITDA
Domestic	1,702	-7	4	1,699	Domestic	1,042	(38.8)	(38.7)
Brasile	493	0	(123)	370	Brasile	347	(29.6)	(5.7)
TI Media	6	7	0	13	TI Media	16	166.7	23.1
Other Activities & Eliminations	(3)			(3)	Other Activities & Eliminations	(17)	-
TI Group	2,198		(119)	2,079	TI Group	1,388	(36.9)	(33.2)
EBITDA Margin					EBITDA Margin
Domestic	42.9%			42.7%	Domestic	26.9%	-16 pp	-15.8 pp
Brasile	30.3%			30.3%	Brasile	36.9%	6.6 pp	5.5pp
TI Media	30.0%			65.0%	TI Media	80.0%	50 pp	15 pp
TI Group	39.2%			40.0%	TI Group	28.7%	-10.5 pp	-11.3 pp

1Q14 13,027 8,761 30,996	D% yoy -5.4% -1.3%	2Q14 12,828	D% yoy -5.4%	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	UNAUDITED FIGURES D% yoy	FY15	D% yoy
				12,656	-5.4%	12,480	-5.5%	12,480	-5.5%	12,283	-5.7%	12,080	-5.8%	11,907	-5.9%	11,742	-5.9%	11,742	-5.9%
		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%	8,890	1.6%	8,890	1.6%
	-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%	30,007	-1.1%	30,007	-1.1%
1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	D% yoy
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%	3,874	-2.3%	15,001	-2.0%
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%	3,578	-1.1%	14,058	-1.9%
174	1.9%	236	3.9%	211	21.6%	348	-10.6%	969	0.9%	196	12.3%	239	1.3%	213	0.7%	296	-15.0%	943	-2.7%
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%	2,664	-3.9%	10,654	-3.1%
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%	2,572	-3.1%	10,372	-2.8%
																			-13.8%
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%	1,378	0.7%	5,068	-0.5%
																			-2.0%
76	-5.7%	126	35.1%	95	18.9%	185	-1.2%	483	9.3%	98	29.0%	127	0.1%	133	39.3%	194	4.8%	551	14.1%
																			-20.4%
																			40.1%
																			-0.8%
	56 1,099 1,792 48.1% 493 13.2% 53,302	23.7% -14.9% -8.2% -14.9% -1.1%	73 1,138 1,709 44.9% 684 18.0% 53,224	1.9% -13.3% -7.5% -10.9% -0.9%	79 1,189 1,795 47.2% 615 16.2% 53,249	47.6% -7.1% -11.6% -9.3% -0.7%	118 1,183 1,702 42.9% 991 25.0% 53,076	-10.6% -5.7% -10.9% -1.5% -0.6%	327 4,608 6,998 45.7% 2,783 18.2% 53,076	7.8% -10.3% -9.6% -8.2% -0.6%	62 1,053 1,610 44.3% 676 18.6% 52,965	9.1% -4.2% -10.2% 37.1% -0.6%	74 1,109 1,236 33.0% 830 22.2% 52,825	1.4% -2.5% -27.7% 21.3% -0.7%	53 1,170 1,679 44.7% 791 21.1% 52,726	-32.5% -1.5% -6.5% 28.6% -1.0%	92 1,184 1,042 26.9% 1,603 41.4% 52,644	-21.7% 0.1% -38.8% 61.8% -0.8%	282 4,517 5,567 37.1% 3,900 26.0% 52,644

1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	D% yoy
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%	11,742	-5.9%	11,742	-5.9%
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%	7,467	3.4%	7,467	3.4%
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%	5,573	3.1%	5,573	3.1%
28	-14.3%	27	-13.1%	25	-17.3%	24	-14.7%	24	-14.7%	26	-6.5%	27	1.4%	29	16.7%	28	17.4%	28	17.4%
660	-14.4%	634	-14.3%	609	-13.5%	588	-12.4%	588	-12.4%	565	-14.4%	547	-13.7%	523	-14.1%	497	-15.4%	497	-15.4%
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%	1,230	3.8%	1,230	3.8%
4	-	8	-	14	-	24	-	24	-	39	-	76	-	105	-	139	-	139	-
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%	7,023	1.5%	7,023	1.5%
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%	1,488	-4.1%	1,488	-4.1%
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%	5,535	3.1%	5,535	3.1%
45	-	103	-	151	-	231	-	231	-	290	-	374	-	435	-	538	-	538	-
91%	1.5pp	91%	1.6pp	91%	1.7pp	92%	1.7pp	92%	1.7pp	92%	1.8pp	93%	1.9pp	93%	1.9pp	94%	1.9pp	94%	1.9pp
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%	1,867	2.1%	1,867	2.1%
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%	21.2	4.9%	20.8	5.3%
1Q14	D% yoy	2Q14	D% yoy	3Q14	D% yoy	4Q14	D% yoy	FY14	D% yoy	1Q15	D% yoy	2Q15	D% yoy	3Q15	D% yoy	4Q15	D% yoy	FY15	D% yoy
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%	2,664	-3.9%	10,654	-3.1%
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%	2,572	-3.1%	10,372	-2.8%
56	23.7%	73	1.9%	79	47.8%	118	-10.6%	327	7.8%	62	9.1%	74	1.4%	53	-32.5%	92	-21.7%	282	-13.8%
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%	955	-11.8%	4,008	-8.3%
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%	339	-9.5%	1,399	-4.1%
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%	539	-13.0%	2,299	-10.3%
32	-4.0%	33	2.0%	34	5.3%	33	-5.4%	133	-0.6%	30	-6.7%	29	-12.9%	28	-18.0%	27	-17.1%	115	-13.7%
53	5.6%	54	3.7%	55	15.2%	55	-3.2%	218	4.9%	49	-7.8%	50	-8.2%	46	-16.4%	49	-10.2%	195	-10.7%
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%	445	5.3%	1,746	5.2%
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%	440	5.7%	1,721	5.4%
5	-8.1%	5	-4.3%	5	-1.9%	6	9.8%	22	-1.3%	6	5.9%	5	-5.3%	6	13.4%	5	-17.1%	22	-1.3%
1	-36.4%	1	-34.3%	1	-29.9%	1	-25.2%	4	-31.9%	1	-21.2%	1	-19.7%	1	-19.3%	1	-21.3%	3	-20.4%
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%	366	-4.3%	1,333	-1.2%
170	4.6%	178	-1.0%	187	15.3%	226	-2.0%	761	3.5%	176	3.7%	188	5.5%	177	-5.2%	216	-4.1%	758	-0.4%
102	-4.4%	100	-1.6%	99	-8.4%	98	-6.1%	399	-5.1%	95	-6.9%	97	-2.7%	89	-9.7%	96	-2.5%	377	-5.4%
42	-6.1%	45	-6.3%	44	-11.5%	59	-4.3%	190	-6.9%	42	0.0%	59	29.7%	43	-1.8%	54	-8.2%	198	4.1%
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%	547	1.2%	2,207	-4.7%
227	11.5%	228	-3.1%	230	-11.7%	258	5.0%	943	-0.2%	231	1.6%	242	6.0%	255	11.0%	258	0.3%	986	4.6%
90		88	-15.2%	93		87								109				374
						Domestic Wireline Results - Reported Figures													UNAUDITED FIGURES

	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	4Q15	D% yoy	FY15	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%	30,007	-1.1%	30,007	-1.1%
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	5.7%	-0.1pp	23.4%	-0.7pp
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%	11.5	14.3%	11.5	14.3%
Total User LTE (mln of users)	0.4	-	0.6	-	0.8	-	1.3	-	1.3	-	1.8	-	2.7	-	3.4	-	4.4	-	4.4	-
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%	16,630	0.4%	66,122	5.5%
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%	10,983	-1.8%	43,611	2.2%
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%	5,647	5.1%	22,512	12.7%
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%	223	2.3%	222	9.8%
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%	1.6	15.9%	1.5	15.9%
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%	12.8	0.8%	12.1	-0.1%
REVENUES (€ mln), Reported figures	1Q14		2Q14		3Q14		4Q14		FY14		1Q15		2Q15		3Q15		4Q15		FY15
TOTAL	1,175	D% yoy -14.4%	1,264	D% yoy -10.0%	1,284	D% yoy -5.6%	1,368	D% yoy -5.1%	5,091	D% yoy -8.7%	1,151	D% yoy -2.0%	1,236	D% yoy -2.2%	1,303	D% yoy 1.5%	1,378	D% yoy 0.7%	5,068	D% yoy -0.5%
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%	1,184	0.1%	4,517	-2.0%
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%	1,037	-0.3%	3,978	-3.0%
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%	432	-13.8%	1,810	-13.7%
o/w VAS (6)
o/w messaging	460 132	-2.3% -23.3%	481 139	-0.6% -17.4%	524 134	4.6% -19.6%	539 135	3.2% -18.2%	2,003 540	1.3% -19.7%	475 100	3.4% -24.2%	522 106	8.5% -24.0%	566 113	7.9% -15.6%	605 120	12.2% -10.6%	2,167 439	8.2% -18.6%
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%	484	19.9%	1,728	18.1%
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%	392	20.5%	1,409	20.3%
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%	92	17.4%	319	9.0%
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%	147	3.1%	539	6.4%
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%	69	16.2%	254	13.3%
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%	78	-6.2%	286	0.9%
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%	194	4.8%	551	14.1%
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	51.1%	5.5pp	48.0%	4.5pp
(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