Telecom Italia Rsp

Earnings Release • Aug 1, 2024

TELECOM ITALIA INVESTOR RELATIONS

Investor\_relations@telecomitalia.it

www.gruppotim.it

Index

Key Financials

P&L Group

Cash Flow & Net Debt

Working Capital

Balance Sheet -Assets

Balance Sheet -Liabilities

DomesticResults

DomesticWireline

DomesticMobile

TIM BrasilResults

Reported& Organic

Disclaimer

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

The preliminary financial and operating data represents TIM Group "as is" (Old TIM Group) presenting the Q2 '24 and H1 '24 managerial pro-forma economic and financial results, according to the traditional perimeter.

Such preliminary financial and operating data has been prepared in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the EU (designated as "IFRS").

The accounting policies and consolidation principles adopted in the preparation of the Q2 '24 and H1 '24 preliminary financial results of the TIM Group are the same 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.

The Q2 '24 and H1 '24 preliminary 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.

TIM Group Key Financials BACK TO INDEX

€m, IFRS 16 & After Lease view

	REPORTED						ORGANIC (1)
	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Q2 '24	Q2 '23 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Change YoY %	Q2 '24	Change YoY %
REVENUES	3,999	4,107	4,343	16,296	3,930	4,023	3,959	3,847	3,999	4,107	4,343	16,296	3,930	1.2	4,023	1.6
Domestic	2,924	2,978	3,177	11,922	2,806	2,908	2,925	2,843	2,924	2,978	3,177	11,922	2,806	(1.3)	2,908	(0.6)
o/w Wireline (2)	2,161	2,153	2,370	8,764	2,055	2,175	2,162	2,080	2,161	2,153	2,370	8,764	2,055	(1.2)	2,175	0.6
o/w Mobile (2)	787	852	830	3,256	774	771	787	787	787	852	830	3,256	774	(1.7)	771	(2.0)
Brazil	1,086	1,138	1,176	4,412	1,134	1,123	1,045	1,012	1,086	1,138	1,176	4,412	1,134	8.1	1,123	7.5
Other activities & Elim.	(11)	(9)	(10)	(38)	(10)	(8)	(11)	(8)	(11)	(9)	(10)	(38)	(10)		(8)	0.0
SERVICE REVENUES	3,687	3,771	3,971	14,953	3,673	3,760	3,648	3,524	3,687	3,771	3,971	14,953	3,673	3.2	3,760	3.1
Domestic	2,644	2,675	2,851	10,721	2,584	2,680	2,645	2,551	2,644	2,675	2,851	10,721	2,584	1.3	2,680	1.3
o/w Wireline (2)	1,969	1,939	2,150	7,955	1,923	2,032	1,970	1,897	1,969	1,939	2,150	7,955	1,923	1.4	2,032	3.2
o/w Mobile (2)	699	761	721	2,861	682	686	699	680	699	761	721	2,861	682	0.4	686	(1.9)
Brazil	1,055	1,104	1,131	4,271	1,099	1,088	1,015	981	1,055	1,104	1,131	4,271	1,099	8.1	1,088	7.2
Other activities & Elim.	(12)	(8)	(11)	(39)	(10)	(8)	(12)	(8)	(12)	(8)	(11)	(39)	(10)		(8)	0.0
EBITDA	1,631	1,547	1,493	5,710	1,420	1,579	1,622	1,459	1,641	1,687	1,596	6,383	1,500	1.6	1,610	(0.7)
Domestic	1,100	986	909	3,577	886	1,020	1,107	1,000	1,107	1,123	1,012	4,242	966	(3.4)	1,051	(5.1)
Brazil	534	561	587	2,141	535	560	518	461	537	564	587	2,149	535	11.8	560	8.3
Other activities & Elim.	(3)	-	(3)	(8)	(1)	(1)	(3)	(2)	(3)	-	(3)	(8)	(1)		(1)	0.0
EBITDA After Lease	1,358	1,280	1,224	4,631	1,157	1,323	1,355	1,189	1,368	1,420	1,327	5,304	1,237	3.0	1,354	(0.1)
Domestic	966	853	769	3,042	752	887	973	872	973	990	872	3,707	832	(4.6)	918	(5.7)
Brazil	395	427	458	1,597	406	437	385	319	398	430	458	1,605	406	22.7	437	13.7
Other activities & Elim.	(3)	-	(3)	(8)	(1)	(1)	(3)	(2)	(3)	-	(3)	(8)	(1)		(1)	0.0
CAPEX net of licences	892	916	1,337	3,982	940	990	882	837	892	916	1,337	3,982	933	10.3	976	10.7
Domestic	719	728	1,095	3,148	688	827	719	606	719	728	1,095	3,148	681	12.4	813	13.1
Brazil	173	188	242	834	252	163	163	231	173	188	242	834	252	5.1	163	0.0
EFCF	(50)	(71)	1,001	763	(790)
EFCF After Lease	(236)	(274)	843	(64)	(973)
NET DEBT (3)	26,163	26,338	25,656	25,656	26,644	26,488
NET DEBT After Lease (3)	20,815	21,184	20,349	20,349	21,370	21,507

(1) Organic figures excluding non-recurring items and change in the scope of consolidation. Comparable base also excluding exchange rate fluctuations (avg. exchange-rate 5.49R\$/€ in H1 '24, 5.38 R\$/€ in Q1 '24) (2) 2023 Domestic wireline and mobile revenues and service revenues restated in Q1 '24 following the revision of internal contracts for the provision of services to TIM S.p.A. employees, with no impacts on total Domestic revenues and service revenues (3) Adjusted

TIM Group Profit & Loss

TIM Group Cash Flow & Net Debt

€m, IFRS 16 & After Lease view

	REPORTED
	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23	Q1 '24	H1 '24
EBITDA	1,316	2,658	3,945	5,347	1,039	2,670	4,217	5,710	1,420	2,999
CAPEX	(932)	(1,906)	(2,762)	(4,077)	(837)	(1,729)	(2,645)	(3,982)	(940)	(1,930)
o/w spectrum		(89)	(98)	(98)
CHANGE IN WORKING CAPITAL	(80)	(399)	(2,311)	(1,895)	તેર	(179)	(449)	873	(482)
Change in net operating working capital	(91)	(261)	(2,389)	(1,736)	(157)	(262)	(515)	1,261	(553)
Change in inventories	(20)	(37)	(રહ)	(35)	(41)	(23)	(20)	(31)	(44)
Change in trade receivables	222	77	32	(81)	164	126	13	(39)	148
Change in trade payables	(497)	(753)	(866)	(8)	(722)	(512)	(730)	204	(696)
Other changes in operating receivables/payables (1)	204	452	(1,500)	(1,612)	442	177	252	1,127	39
Change in provisions for employee benefits	38	241	474	156	243	235	108	(291)	24
Change in operating provisions and other changes	(27)	(379)	(396)	(315)	10	(152)	(42)	(97)	47
OPERATING FREE CASH FLOW Reported	304	353	(1,128)	(625)	298	762	1,123	2,601	(2)
Licence	(186)	(469)	(2,217)	(2,242)		(24)	(24)	(48)
OPERATING FREE CASH FLOW net of Licence	490	822	1,089	1,617	298	786	1,147	2,649	(2)
Financial Expenses	(308)	(660)	(1,028)	(1,389)	(359)	(791)	(1,257)	(1,702)	(447)
Cash Taxes & Other (2)	119	176	200	396	(26)	(162)	(128)	(184)	(341)
o/w Substitute Tax				231
Net Cash Flow from discontinued operations
EQUITY FREE CASH FLOW	301	338	261	624	(117)	(167)	(238)	763	(790)
Dividends and change in Equity	(26)	(30)	(44)	(୧୧)	(38)	(86)	(164)	(189)	(39)
Disposal and Financial investments	(11)	(1,771)	(589)	(୧୧୧୧)	(5)	(57)	(74)	(33)	(9)
Licence	(186)	(469)	(2,217)	(2,242)		(24)	(24)	(48)
IFRS & IAS	(530)	(535)	(728)	(827)	(296)	(465)	(474)	(785)	(150)
NET CASH FLOW	(452)	(2,467)	(3,317)	(3,177)	(456)	(799)	(974)	(292)	(988)	(832)
EQUITY FREE CASH FLOW	301	338	261	624	(117)	(167)	(238)	763	(790)
Lease Impact	(178)	(322)	(496)	(650)	(280)	(466)	(669)	(827)	(183)
EQUITY FREE CASH FLOW AFTER LEASE	123	16	(235)	(26)	(397)	(633)	(907)	(64)	(973)
NET DEBT	22,639	24,654	25,504	25,364	25,820	26,163	26,338	25,656	26,644	26,488
Lease Impact	(4,966)	(5,385)	(5,404)	(5,349)	(5,365)	(5,348)	(5,154)	(5,307)	(5,274)	(4,981)
NET DEBT After Lease	17,673	19,269	20,100	20,015	20,455	20,815	21,184	20,349	21,370	21,507

(1) FY '23 including € 758m NRRP, o/w € 270m cashed-in Dec. '23 and € 488m as financial assets (cashed-in Jan. '24) (2) Q1 '24 including €249m foreclosure ("VAS services" investigation) annulled by the Court of re-examination on 24 April 2024

Working Capital

		TIM Group (1)			Domestic		Brasil
	H1 '23	H1 '24	A abs	H1 '23	H1 '24	A abs	H1 '23	H1 '24	A abs
Operating WC & Other	(179)			(26)			(153)
License License paid in the year Non recurring items (not paid)	24 (430)			(425)			24 (5)
Recurring Operating WC	(285)			(451)			(134)
Inventory Trade Receivables Trade Payables Other Operating Payables/Receivables & Funds - o/w Litigations & Settlements - o/w Payables vs. Personnel - o/w Personnel Exit (Fornero Law) - o/w VAT - o/w Billing (2) - o/w Net Debts vs INPS - o/w Deferred Costs & Revenues -o/w Payment in Advance vs Suppliers/Customers				(28) 151 (379) (195) (176) 46 (208) 378 (୧୫) (15) (103) (27)

TIM Group Balance Sheet

	IFRS 16
	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23	Q1 '24	H1 '24
CURRENT ASSETS	10,272	11,878	10,708	10,232	9,458	9,563	10,475	10,880	9,123
Trade and miscellaneous receivables and other current assets	4,420	4,481	4,527	4,539	4,496	4,676	4,642	4,699	5,134
Cash and cash equivalents	3,272	2,391	3,519	3,555	2,660	2,385	3,291	2,912	1,285
Discontinued operations/assets held for sale	-	2,631	20	-	-	-	1	-	-
o/w of a financial nature	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	2,631	20	-	-	-	1	-	-
Securities other than investments, other financial receivables and other current financial assets	2,122	1,883	1,907	1,600	1,679	1,897	1,822	2,571	2,024
Inventories	309	324	344	322	363	377	364	345	388
Current income tax receivables	88	114	336	147	145	134	201	191	154
Current financial receivables arising from lease contracts	61	5 4	5 5	69	115	94	154	162	138
Other investments	-			-	-			-	-
NON-CURRENT ASSETS	56,023	54,691	52,399	51,795	51,823	51,766	51,092	51,279	51,044
Intangible assets	26,063	26,908	26,929	26,767	26,665	26,680	26,429	26,292	26,123
Goodwill	18,657	19,009	19,082	19,111	19,118	19,202	19,188	19,170	19,160
Intangible assets with a finite useful life	7,406	7,899	7,847	7,656	7,547	7,478	7,241	7,122	6,963
Tangible assets	13,692	13,971	14,022	14,100	14,094	14,292	14,348	14,692	14,743
Property, plant and equipment owned	13,692	13,971	14,022	14,100	14,094	14,292	14,348	14,692	14,743
Right of Use assets	5,177	5,554	5,517	5,488	5,545	5,528	5,355	5,515	5,419
Other assets	11,091	8,258	5,931	5,440	5,519	5,266	4,960	4,780	4,759
Miscellaneous receivables and other non-current assets	2,353	2,343	2,356	2,365	2,395	2,467	2,302	2,187	2,195
Non-current financial assets	2,089	2,011	2,140	1,651	1,697	1,300	1,172	1,215	1,178
o/w receivable for lease contracts	5 0	5 0	49	49	48	141	113	112	111
o/w other non-current financial assets	2,039	1,961	2,091	1,602	1,649	1,159	1,059	1,103	1,067
Deferred tax assets	3,470	3,441	772	769	779	782	790	701	700
Other investments	134	128	105	116	111	152	150	140	150
Investments in associates and joint ventures accounted for using the equity method	3,045	335	558	539	537	565	546	537	536
TOTAL ASSETS	66,295	66,569	63,107	62,027	61,281	61,329	61,567	62,159	60,167

TIM Group Balance Sheet

	IFRS 16
	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23	Q1 '24
CURRENT LIABILITIES	13,739	14,200	13,214	14,142	14,069	16,542	14,862	16,020	14,560
Trade and miscellaneous payables and other current liabilities	9,655	9,410	7,591	8,199	8,019	8,158	7,894	9,384	9,053
Current financial liabilities	3,811	4,550	5,614	5,909	6,007	8,370	6,943	6,609	5,484
o/w liabilities for financing contracts and others	3,128	3,768	4,808	5,039	5,163	7,497	6,096	5,771	4,627
o/w liabilities for lease contracts	683	782	806	870	844	873	847	838	857
Liabilities directly associated with Discontinued operations/Non-current assets held for sale	-	1	-	-	-	-	1	-	-
o/w of a financial nature	-	-	-	-	-	-	-	-	-
o/w of a non-financial nature	-	1	-	-	-	-	1	-	-
Current income tax payables	273	239	9	34	43	14	2 4	2 7	2 3
NON-CURRENT LIABILITIES	29,821	29,844	30,742	29,160	29,043	26,523	28,903	28,626	28,600
Non-current financial liabilities	26,579	26,469	27,506	26,336	25,861	23,516	25,967	26,027	25,951
o/w liabilities for financing contracts and others	22,185	21,762	22,804	21,739	21,177	18,806	21,393	21,284	21,285
o/w liabilities for lease contracts	4,394	4,707	4,702	4,597	4,684	4,710	4,574	4,743	4,666
Miscellaneous payables and other non-current liabilities	1,366	1,322	1,017	1,146	1,103	1,031	1,061	1,326	1,345
Employee benefits	700	812	972	684	965	943	843	511	514
Provisions	956	1,007	1,010	910	942	844	840	679	693
Deferred tax liabilities	220	234	237	84	172	189	192	83	97
TOTAL LIABILITIES	43,560	44,044	43,956	43,302	43,112	43,065	43,765	44,646	43,160
EQUITY	22,735	22,525	19,151	18,725	18,169	18,264	17,802	17,513	17,007
Equity attributable to equity owners of the Parent	17,786	17,590	15,461	15,061	14,463	14,428	13,992	13,646	13,197
Equity attributable to Minority Interests	4,949	4,935	3,690	3,664	3,706	3,836	3,810	3,867	3,810
TOTAL LIABILITIES & EQUITY	66,295	66,569	63,107	62,027	61,281	61,329	61,567	62,159	60,167

Domestic Results

€m, IFRS 16 & After Lease view

	REPORTED							ORGANIC (1)
	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Q2 '24	Q2 '23 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Change YoY %	Q2 '24	Change YoY %
REVENUES	2,924	2,978	3,177	11,922	2,806	2,908	2,925	2,843	2,924	2,978	3,177	11,922	2,806	(1.3)	2,908	(0.6)
Service Revenues	2,644	2,675	2,851	10,721	2,584	2,680	2,645	2,551	2,644	2,675	2,851	10,721	2,584	1.3	2,680	1.3
Wireline Services (2) Retail National Wholesale + FiberCop International Wholesale Other Mobile Services (2) Retail Wholesale and Other Elimination & Other	1,969 1,284 436 248 1 699 598 101 (24)	1,939 1,274 424 242 (1) 761 613 148 (25)	2,150 1,495 417 241 (3) 721 621 100 (20)	7,955 5,306 1,694 957 (2) 2,861 2,425 436 (95)	1,923 1,286 420 213 4 682 582 100 (21)	2,032 1,354 421 258 (1) 686 581 105 (38)	1,970 1,284 436 249 1 699 598 101 (24)	1,897 1,253 417 226 1 680 593 87 (26)	1,969 1,284 436 248 1 699 598 101 (24)	1,939 1,274 424 242 (1) 761 613 148 (25)	2,150 1,495 417 241 (3) 721 621 100 (20)	7,955 5,306 1,694 957 (2) 2,861 2,425 436 (95)	1,923 1,286 420 213 4 682 582 100 (21)	1.4 2.7 0.8 (5.3) 0.4 (1.8) 14.9	2,032 1,354 421 258 (1) 686 581 105 (38)	3.2 5.4 (3.5) 3.6 (1.8) (2.8) 3.8
Handsets	280	303	326	1,201	222	228	280	292	280	303	326	1,201	222	(24.0)	228	(18.6)
OPEX	1,824	1,992	2,268	8,345	1,920	1,888	1,818	1,843	1,817	1,855	2,165	7,680	1,840	(0.1)	1,857	2.1
EBITDA EBITDA Margin	1,100 37.6%	986 33.1%	909 28.6%	3,577 30.0%	886 31.6%	1,020 35.1%	1,107 37.8%	1,000 35.2%	1,107 37.9%	1,123 37.7%	1,012 31.9%	4,242 35.6%	966 34.4%	(3.4) (0.8 p.p.)	1,051 36.1%	(5.1) 0.9 p.p.
EBITDA After Lease EBITDA AL Margin	966 33.0%	853 28.6%	769 24.2%	3,042 25.5%	752 26.8%	887 30.5%	973 33.3%	872 30.7%	973 33.3%	990 33.2%	872 27.4%	3,707 31.1%	832 29.7%	(4.6) (1.0 p.p.)	918 31.6%	(5.7) 0.9 p.p.
CAPEX net of licences % on revenues	719 24.6%	728 24.4%	1,095 34.5%	3,148 26.4%	688 24.5%	827 28.4%	719 24.6%	606 21.3%	719 24.6%	728 24.4%	1,095 34.5%	3,148 26.4%	681 24.3%	12.4 3.0 p.p.	813 28.0%	13.1 6.7 p.p.
Headcount EoP	40,903	39,186	37,901	37,901	37,888	37,829

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) 2023 wireline and mobile revenues and service revenues restated in Q1 '24 following the revision of internal contracts for the provision of services to TIM S.p.A. employees, with no impacts on total Domestic revenues and service revenues

Domestic Wireline

€m, IFRS 16

	REPORTED				ORGANIC (1)
	Q2 '23	Q3 '23	'23 Q4	FY '23	Q1 '24	Q2 '24	Q2 '23 comparable base	Q1 '23	Q2 '23	Q3 '23	'23 Q4	FY '23	Q1 '24	Change YoY %	Q2 '24	Change YoY %
WIRELINE REVENUES (2)	2,161	2,153	2,370	8,764	2,055	2,175	2,162	2,080	2,161	2,153	2,370	8,764	2,055	(1.2)	2,175	0.6
Wireline Service Revenues (2)	1,969	1,939	2,150	7,955	1,923	2,032	1,970	1,897	1,969	1,939	2,150	7,955	1,923	1.4	2,032	3.2
Retail Services o/w Broadband and content	1,284 494	1,274 499	1,495 507	5,306 1,983	1,286 508	1,354 536	1,284 494	1,253 482	1,284 494	1,274 499	1,495 507	5,306 1,983	1,286 508	2.7 5.5	1,354 536	5.4 8.5
o/w ICT Services	396	383	587	1,739	396	453	396	373	396	383	587	1,739	396	6.2	453	14.6
National Wholesale + FiberCop	436	424	417	1,694	420	421	436	417	436	424	417	1,694	420	0.8	421	(3.5)
International Wholesale	248	242	241	957	213	258	249	226	248	242	241	957	213	(5.3)	258	3.6
Other	1	(1)	(3)	(2)	4	(1)	1		।	(1)	(3)	(2)	4		(1)
Equipments	192	214	219	809	132	143	192	183	192	214	219	809	132	(28.1)	143	(25.8)
Retail lines ('000)							8,141	8,216	8,141	8,066	7,975	7,975	7,881	(4.1)	7,783	(4.4)
Churn rate % (3)							3.2	3.3	3.1	3.0	3.7	13.1	3.9	0.5 p.p.	3.7	0.5 p.p.
Broadband							7,318	7,379	7,318	7,260	7,196	7,196	7,130	(3.4)	7,056	(3.6)
Consumer							6,154	6,213	6,154	6,091	6,024	6,024	5,960	(4.1)	5,890	(4.3)
Business (4)							1,164	1,165	1,164	1,169	1,172	1,172	1,170	0.4	1,166	0.1
UBB							5,531	5,487	5,531	5,553	5,580	5,580	5,616	2.3	5,628	1.8
Wholesale lines ('000)							7,365	7,453	7,365	7,297	7,247	7,247	7,201	(3.4)	7,111	(3.4)
Local Loop Unbundling Wholesale Line Rental							1,666 130	1,744 135	1,666 130	1,603 126	1,537 122	1,537 122	1,466 116	(15.9) (14.0)	1,393 115	(16.4) (11.5)
Bitstream Naked							347	367	347	327	309	309	291	(20.8)	274	(21.0)
UBB							5,222	5,206	5,222	5,241	5,280	5,280	5,328	2.3	5,329	2.0
ARPU Consumer (€/month)							28.1	27.4	28.1	283	289	28.7	29.7	69	30.4	81

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) 2023 wireline revenues and service revenues restated in Q1 '24 following the revision of internal contracts for the provision of services to TIM S.p.A. employees, with no impacts on total Domestic revenues and service revenues (3) Churn rates reclassified starting from 2024 for some refinements in churn details; 2023 comparable base reclassified too (4) Including SMB broadband lines (823k in Q2 '24)

Domestic Wireline - Legenda BACK TO INDEX

WIRELINE REVENUES	Total revenues of Domestic Wireline, including services and equipment
Wireline Service Revenues	Including retail, domestic wholesale, Sparkle (TIS Group), adjustments and eliminations
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale Other	Retail service revenues: consumer + business (including revenues generated by TIM Factories) Data services (xDSL, FTTx), TIM Vision and other contents, TIM Game Cloud, Security, IT and other B2B services. Including revenues generated by TIM Factories Revenues from OLOs, regulated and not regulated (organization view) and from FiberCop (consolidated by line from Q2) TIM Sparkle Group revenues Intercompany adjustment and elimination
Equipments	Equipment sold, including consumer (routers, set-top-box, etc) and B2B (IRU, IT hardware, local networks equipment, etc)
Retail lines ('000) Churn rate %	Fixed accesses, including both voice, broadband (xDSL, FTTx) and data only lines. Gigabit Ethernet (GBE) FTTH lines included Percentage of line lost on average nr of lines in the reported period
Broadband Consumer Business UBB	All active broadband lines, including xDSL and FTTx Active broadband lines on Consumer customers Active broadband lines on Corporate and Small/Medium enterprises All active fiber line retail customers (FTTx and enterprise data lines) and Fixed Wireless Accesses (FWA). Gigabit Ethernet (GBE) FTTH lines included
Wholesale lines ('000)	Total number of wholesale lines
Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB	Nr. of wholesale accesses to the copper local access network (SULL, VULL and NGA included) Nr. of rented wholesale lines enabling OLOs to resell basic and advanced telephone and associated services Nr. of wholesale copper access lines with no RTG/ISDN/WLR voice service, used by OLOs for ADSL data service. Nr. of FTTx accesses on TIM's fiber network
ARPU Consumer	Consumer service revenues divided by average active consumer CB (€/line/month)

ARPU Consumer net of activation fees Consumer service revenues divided by average active consumer CB, net of activation fees discontinuity (€/line/month)

BACK TO INDEX Unaudited figures

Domestic Mobile

€m, IFRS 16

	REPORTED				ORGANIC (1)
	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Q2 '24	Q2 '23 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Change YoY %	Q2 '24	Change YoY %
MOBILE REVENUES (2)	787	852	830	3,256	774	771	787	787	787	852	830	3,256	774	(1.7)	771	(2.0)
Mobile Service Revenues (2)	699	761	721	2,861	682	686	699	680	699	761	721	2,861	682	0.4	686	(1.8)
Retail Services o/w Incoming Wholesale and Other	598 2 8 101	613 2 5 148	621 2 6 100	2,425 106 436	582 12 100	581 14 105	598 2 8 101	593 2 7 87	598 2 8 101	613 2 5 148	621 2 6 100	2,425 106 436	582 12 100	(1.8) (55.0) 14.9	581 14 105	(2.8) (51.4) 3.8
Handsets and Handsets Bundle	88	91	109	395	92	85	88	107	88	91	109	395	92	(14.6)	85	(3.5)
Total number of lines ('000) Churn rate %							30,251 2.8	30,201 3.7	30,251 2.8	30,232 3.1	30,128 3.3	30,128 12.8	29,995 3.3	(0.7) (0.4 p.p.)	29,619 3.4	(2.1) 0.6 p.p.
Human Not Human (M2M) Calling lines Human Calling Broadband Users							18,269 11,982 27,667 15,685 12,662	18,297 11,904 27,576 15,673 12,584	18,269 11,982 27,667 15,685 12,662	18,201 12,031 27,622 15,591 12,705	18,071 12,057 27,506 15,449 12,592	18,071 12,057 27,506 15,449 12,592	17,908 12,087 27,441 15,353 12,703	(2.1) 1.5 (0.5) (2.0) 0.9	17,793 11,826 27,087 15,261 12,663	(2.6) (1.3) (2.1) (2.7) 0.0
LTE Users							12,371	12,273	12,371	12,428	12,333	12,333	12,444	1.4	12,409	0.3
Usage Data (GB/users/month)							16.2	15.4	16.2	17.8	16.9	16.6	17.2	11.7	14.9	(8.2)
ARPU Consumer - Human calling (€/month)							10.7	10.6	10.7	11.0	11.1	10.8	10.6	(0.6)	10.5	(1.5)

(1) Excluding non-recurring items and change in consolidation area; comparable base also excluding exchange rate fluctuations (2) 2023 mobile revenues and service revenues restated in Q1 '24following the revision of internal contracts for the provision of services to TIM S.p.A. employees, with no impacts on total Domestic revenues and service revenues

Domestic Mobile - Legenda BACK TO INDEX

MOBILE REVENUES	Total mobile revenues, including services, handsets and handsets bundle
Mobile Service Revenues	Mobile service revenues, including retail, wholesale and other
Retail Services o/w Incoming Wholesale and Other	Retail service revenues, consumer and business including voice, messaging, browsing and content Revenues for voice traffic terminated on TIM mobile customers including visitors MVNOs and visitors. Inwit revenues and colocation on mobile sites until Q1 '20
Handsets and Handsets Bundle	Mobile handsets sales and handsets bundles
Total number of lines Churn rate %	Total mobile customer base, human and not human ('000) Percentage of line lost on average nr of lines in the reported period
Human Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users	Total nr. of human lines Total nr. of not human lines, including machine to machine and data-only SIMs (eg. for tablets) Nr. of active lines (calling at least once within the last month of the reported quarter) Nr. of human active lines (calling at least once within the last month of the reported quarter) Mobile customers using data services Mobile customer using (also) 4G (LTE) data services
Usage Data	Average data usage (GB/broadband users/month) - Data volumes net of Visitors, Roamers and MVNO (Noverca/Kena volumes included)
ARPU Consumer - Human calling	Consumer service revenues divided by average consumer human calling CB (€/line/month)

ARPU Consumer - Human calling net of MTR Consumer service revenues divided by average consumer human calling CB, net of Termination Rate discontinuity (€/line/month)

Reported, R\$m, IFRS 16

	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q1 '24	Change YoY %	Q2 '24	Change YoY %
REVENUES	5,640	5,863	6,056	6,275	23,834	6,096	8.1	6,302	7.5
Service Revenues	5,467	5,694	5,876	6,034	23,071	5,910	8.1	6,103	7.2
o/w Mobile	5,152	5,374	5,550	5,707	21,783	5,578	8.2	5,766	7.3
o/w Fixed	314	321	324	328	1,287	332	5.6	337	4.9
Handsets	173	169	180	241	763	186	7.5	199	17.8
OPEX	3,081	2,980	3,064	3,147	12,272	3,220	4.5	3,162	6.1
EBITDA	2,559	2,883	2,992	3,128	11,562	2,876	12.4	3,140	8.9
EBITDA margin	45.4%	49.2%	49.4%	49.8%	48.5%	47.2%	1.8 p.p.	49.8%	0.6 p.p.
EBITDA net non recurring	2,572	2,900	3,003	3,129	11,604	2,876	11.8	3,140	8.3
EBITDA margin	45.6%	49.5%	49.6%	49.9%	48.7%	47.2%	1.6 p.p.	49.8%	0.3 p.p.
EBITDA After Lease net non recurring	1,780	2,152	2,294	2,440	8,666	2,184	22.7	2,447	13.7
EBITDA margin	31.6%	36.7%	37.9%	38.9%	36.4%	35.8%	4.2 p.p.	38.8%	2.1 p.p.
CAPEX	1,289	925	998	1,292	4,504	1,355	5.1	924	(0.1)
% on revenues	22.9%	15.8%	16.5%	20.6%	18.9%	22.2%	(0.7 p.p.)	14.7%	(1.1 p.p.)
KPI's
Mobile Lines ('000) (1)	61,721	61,225	61,254	61,248	61,248	61,420	(0.5)	61,986	1.2
Market Share on total lines (2)	24.6%	24.3%	24.2%	23.9%	23.9%	23.8%	(0.8 p.p.)	23.8%	(0.5 p.p.)
ARPU Mobile (R\$/month) (3)	27.7	29.2	30.2	31.1	29.5	30.4	9.7	31.2	6.8
TIM UltraFibra Lines ('000)	732	761	791	802	802	806	10.1	798	4.8
ARPU TIM UltraFibra (R\$/month)	97.8	98.3	96.0	95.9	96.9	95.8	(2.0)	98.6	0.3
Exchange rate AVG YTD (R\$/euro)	5.57	5.48	5.43	5.40	5.40	5.38		5.49

Reported & Organic Reconciliation

€m, IFRS 16 & After Lease view

			Q2 '23	Q2 '24
			Non Organic elements		Organic
	Reported	Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	3,999	-	(40)	-	3,959	4,023	-	4,023
Domestic	2,924	-	1	-	2,925	2,908	-	2,908
Brazil	1,086	-	(41)	-	1,045	1,123	-	1,123
Other Activities & Eliminations	(11)	-	-	-	(11)	(8)	-	(8)
SERVICE REVENUES	3,687	-	(39)	-	3,648	3,760	-	3,760
Domestic	2,644	-	1	-	2,645	2,680	-	2,680
Brazil	1,055	-	(40)	-	1,015	1,088	-	1,088
Other Activities & Eliminations	(12)	-	-	-	(12)	(8)	-	(8)
EBITDA	1,631	-	(19)	(10)	1,622	1,579	(31)	1,610
Domestic	1,100	-	-	(7)	1,107	1,020	(31)	1,051
Brazil	534	-	(19)	(3)	518	560	-	560
Other Activities & Eliminations	(3)	-	-	-	(3)	(1)	-	(1)
EBITDA After Lease	1,358	-	(13)	(10)	1,355	1,323	(31)	1,354
Domestic	966	-	-	(7)	973	887	(31)	918
Brazil	395	-	(13)	(3)	385	437	-	437
Other Activities & Eliminations	(3)	-	-	-	(3)	(1)	-	(1)

For further questions please contact the IR team