Telecom Italia Rsp

Earnings Release • Feb 14, 2024

TELECOM ITALIA INVESTOR RELATIONS Investor\_relations@telecomitalia.it www.gruppotim.it

Index

Key Financials P&L Group Cash Flow & Net Debt Balance Sheet -Assets Balance Sheet -Liabilities DomesticResults DomesticWireline DomesticMobile TIM BrasilResults Reported& Organic Working Capital

Disclaimer

The 2023 preliminary financial results of the TIM Group were drafted 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 2023 preliminary financial results of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2022, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January, 2023.

Please note that the 2023 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 nonrecurring 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)
	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q4 '22 comparable base	FY '22 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Change YoY %	FY '23	Change YoY %
REVENUES	4,259	15,788	3,847	3,999	4,107	4,343	16,296	4,263	15,804	3,847	3,999	4,107	4,343	1.9	16,296	3.1
Domestic	3,185	11,858	2,843	2,924	2,978	3,177	11,922	3,181	11,851	2,843	2,924	2,978	3,177	(0.1)	11,922	0.6
o/w Wireline	2,389	8,821	2,169	2,251	2,242	2,460	9,122	2,385	8,814	2,169	2,251	2,242	2,460	3.1	9,122	3.5
o/w Mobile	934	3,572	808	807	872	850	3,337	934	3,572	808	807	872	850	(9.0)	3,337	(6.6)
Brazil	1,083	3,963	1,012	1,086	1,138	1,176	4,412	1,091	3,986	1,012	1,086	1,138	1,176	7.7	4,412	10.7
Other activities & Elim.	(9)	(33)	(8)	(11)	(9)	(10)	(38)	(9)	(33)	(8)	(11)	(9)	(10)		(38)
SERVICE REVENUES	3,850	14,600	3,524	3,687	3,771	3,971	14,953	3,854	14,615	3,524	3,687	3,771	3,971	3.0	14,953	2.3
Domestic	2,822	10,799	2,551	2,644	2,675	2,851	10,721	2,818	10,792	2,551	2,644	2,675	2,851	1.2	10,721	(0.7)
o/w Wireline	2,180	8,276	1,986	2,059	2,028	2,241	8,313	2,176	8,269	1,986	2,059	2,028	2,241	3.0	8,313	0.5
o/w Mobile	779	3,060	701	719	781	741	2,942	779	3,060	701	719	781	741	(4.9)	2,942	(3.9)
Brazil	1,037	3,834	981	1,055	1,104	1,131	4,271	1,045	3,856	981	1,055	1,104	1,131	8.2	4,271	10.8
Other activities & Elim.	(9)	(33)	(8)	(12)	(8)	(11)	(39)	(9)	(33)	(8)	(12)	(8)	(11)		(39)
EBITDA	1,402	5,347	1,039	1,631	1,547	1,493	5,710	1,495	6,039	1,459	1,641	1,687	1,596	6.8	6,383	5.7
Domestic	878	3,519	582	1,100	986	909	3,577	959	4,173	1,000	1,107	1,123	1,012	5.5	4,242	1.7
Brazil	524	1,839	459	534	561	587	2,141	536	1,874	461	537	564	587	9.5	2,149	14.7
Other activities & Elim.	-	(11)	(2)	(3)	-	(3)	(8)	-	(8)	(2)	(3)	-	(3)		(8)
EBITDA After Lease	1,122	4,313	769	1,358	1,280	1,224	4,631	1,213	5,001	1,189	1,368	1,420	1,327	9.4	5,304	6.1
Domestic	747	3,007	454	966	853	769	3,042	828	3,661	872	973	990	872	5.3	3,707	1.3
Brazil	375	1,317	317	395	427	458	1,597	385	1,348	319	398	430	458	18.2	1,605	18.8
Other activities & Elim.	-	(11)	(2)	(3)	-	(3)	(8)	-	(8)	(2)	(3)	-	(3)		(8)
CAPEX net of licences	1,315	4,077	837	892	916	1,337	3,982	1,299	3,985	837	892	916	1,337	2.9	3,982	(0.1)
Domestic	1,059	3,207	606	719	728	1,095	3,148	1,059	3,127	606	719	728	1,095	3.4	3,148	0.7
Brazil	256	870	231	173	188	242	834	240	858	231	173	188	242	1.3	834	(2.7)
EFCF	363	624	(117)	(50)	(71)	1,001	763
EFCF After Lease	209	(26)	(397)	(236)	(274)	843	(64)
NET DEBT (2)	25,364	25,364	25,820	26,163	26,338	25,656	25,656
NET DEBT After Lease (2)	20,015	20,015	20,455	20,815	21,184	20,349	20,349

(1) Organic figures excluding non-recurring items and change in the scope of consolidation. Comparable base excluding exchange rate fluctuations (FY '23 avg. exchangerate 5.40 R\$/€) (2) Adjusted

TIM Group Profit & Loss

€m, IFRS 16

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23
REVENUES	15,316	3,644	7,557	11,529	15,788	3,847	7,846	11,953	16,296
Other Income	272	37	78	127	213	37	109	145	206
TOTAL OPERATING REVENUES AND OTHER INCOME	15,588	3,681	7,635	11,656	16,001	3,884	7,955	12,098	16,502
Acquisition of goods and services	(6,550)	(1,620)	(3,385)	(5,195)	(7,239)	(1,756)	(3,579)	(5,410)	(7,518)
Employee benefits expenses	(2,941)	(731)	(1,554)	(2,436)	(3,180)	(1,089)	(1,711)	(2,291)	(2,987)
Other operating expenses	(1,502)	(168)	(342)	(525)	(816)	(181)	(338)	(638)	(872)
Internally generated assets and Others	485	154	304	445	581	181	343	458	585
EBITDA (1)	5,080	1,316	2,658	3,945	5,347	1,039	2,670	4,217	5,710
EBITDA Margin	33.2%	36.1%	35.2%	34.2%	33.9%	27.0%	34.0%	35.3%	35.0%
Depreciation and amortization	(4,490)	(1,107)	(2,295)	(3,540)	(4,777)	(1,201)	(2,429)	(3,643)
Gains (losses) on disposals of non-current assets	1	-	34	33	36	-	(2)	(3)
Impairment reversals (losses) on non-current assets	(4,120)	-	-	-	-	-	-	(3)
EBIT	(3,529)	209	397	438	606	(162)	239	568
EBIT Margin	-23.0%	5.7%	5.3%	3.8%	3.8%	-4.2%	3.0%	4.8%
Income (loss) equity invest. valued equity method	164	16	31	203	229	(4)	(12)	(30)
Net Financial Income / (Expenses)	(1,150)	(317)	(686)	(1,075)	(1,423)	(371)	(757)	(1,232)
Profit (loss) before tax from continuing operations	(4,515)	(92)	(258)	(434)	(588)	(537)	(530)	(694)
Income tax expense	(3,885)	(50)	(102)	(2,109)	(2,066)	(85)	(143)	(206)
Profit (loss) from continuing operations	(8,400)	(142)	(360)	(2,543)	(2,654)	(622)	(673)	(900)
Discontinued operations/Non-current assets held for sale	-	-	-	-	-	-	-	-
PROFIT (LOSS)	(8,400)	(142)	(360)	(2,543)	(2,654)	(622)	(673)	(900)
Parent Company	(8,652)	(204)	(483)	(2,728)	(2,925)	(689)	(813)	(1,124)
Minorities	252	62	123	185	271	67	140	224
Non-Recurring Items (2)	8,653	53	289	2,371	2,437	427	438	598
PROFIT (LOSS) NET NON-RECURRING ITEMS	253	(89)	(71)	(172)	(217)	(195)	(235)	(302)

(1) Non-recurring items € 673m in FY '23 (€ 682m in FY '22), o/w €484m related to personnel costs (€ 572m in FY '22) (2) Includes provisions for personnel (2021-26 layoffs ex art.4 Fornero Law), claims and litigation

TIM Group Cash Flow & Net Debt

€m, IFRS 16 & After Lease view

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23
EBITDA	5,080	1,316	2,658	3,945	5,347	1,039	2,670	4,217	5,710
CAPEX	(4,630)	(932)	(1,906)	(2,762)	(4,077)	(837)	(1,729)	(2,645)	(3,982)
CHANGE IN WORKING CAPITAL	994	(80)	(399)	(2,311)	(1,895)	9 6	(179)	(449)
Change in net operating working capital	733	(91)	(261)	(2,389)	(1,736)	(157)	(262)	(515)
Change in inventories	(39)	(20)	(37)	(55)	(35)	(41)	(53)	(50)
Change in trade receivables	257	222	77	32	(81)	164	126	13
Change in trade payables	1,008	(497)	(753)	(866)	(8)	(722)	(512)	(730)
Other changes in operating receivables/payables	(493)	204	452	(1,500)	(1,612)	442	177	252
Change in provisions for employee benefits	(83)	38	241	474	156	243	235	108
Change in operating provisions and other changes	344	(27)	(379)	(396)	(315)	10	(152)	(42)
OPERATING FREE CASH FLOW Reported	1,444	304	353	(1,128)	(625)	298	762	1,123
Licence	(435)	(186)	(469)	(2,217)	(2,242)	-	(24)	(24)
OPERATING FREE CASH FLOW net of Licence	1,879	490	822	1,089	1,617	298	786	1,147
Financial Expenses	(1,053)	(308)	(660)	(1,028)	(1,389)	(359)	(791)	(1,257)
Cash Taxes & Other	(194)	119	176	200	396	(56)	(162)	(128)
o/w Substitute Tax	(231)	-	-	-	231	-	-	-
Net Cash Flow from discontinued operations	-	-	-	-	-	-	-	-
EQUITY FREE CASH FLOW	632	301	338	261	624	(117)	(167)	(238)	763
Dividends and change in Equity	(410)	(26)	(30)	(44)	(66)	(38)	(86)	(164)
Disposal and Financial investments (1)	1,804	(11)	(1,771)	(589)	(666)	(5)	(57)	(74)
Licence	(435)	(186)	(469)	(2,217)	(2,242)	-	(24)	(24)
IFRS & IAS	(452)	(530)	(535)	(728)	(827)	(296)	(465)	(474)
NET CASH FLOW	1,139	(452)	(2,467)	(3,317)	(3,177)	(456)	(799)	(974)	(292)
EQUITY FREE CASH FLOW	632	301	338	261	624	(117)	(167)	(238)	763
Lease Impact	(570)	(178)	(322)	(496)	(650)	(280)	(466)	(669)	(827)
EQUITY FREE CASH FLOW AFTER LEASE	6 2	123	16	(235)	(26)	(397)	(633)	(907)	(64)
NET DEBT	22,187	22,639	24,654	25,504	25,364	25,820	26,163	26,338	25,656
Lease Impact	(4,614)	(4,966)	(5,385)	(5,404)	(5,349)	(5,365)	(5,348)	(5,154)	(5,307)
NET DEBT After Lease	17,573	17,673	19,269	20,100	20,015	20,455	20,815	21,184	20,349

FY '23 Preliminary Financial and Operating Figures Investor Relations (1) FY '22 figure including Daphne 3 disposal (+€ 1,184m), OI acquisition (-€ 1,874m) and other M&A (+€ 24m); KKR transaction (+€ 1,759m), other disposal (+€ 172m) and financial investments (-€ 127m) in FY '21

Working Capital

€m, IFRS 16

	TIM Group (1)			Domestic		Brasil
	FY '22	FY '23	Δ abs	FY '22	FY '23	Δ abs	FY '22	FY '23	Δ abs
Operating WC & Other
License License paid in the year Non recurring items (not paid)
Recurring Operating WC
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

TIM Group Balance Sheet

€m, IFRS 16

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23
CURRENT ASSETS	14,070	10,272	11,878	10,708	10,232	9,458	9,563	10,475
Trade and miscellaneous receivables and other current assets	4,358	4,420	4,481	4,527	4,539	4,496	4,676	4,642
Cash and cash equivalents	6,904	3,272	2,391	3,519	3,555	2,660	2,385	3,291
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	2,391	2,122	1,883	1,907	1,600	1,679	1,897	1,822
Inventories	282	309	324	344	322	363	377	364
Current income tax receivables	79	88	114	336	147	145	134	201
Current financial receivables arising from lease contracts	56	61	54	55	69	115	94	154
Other investments	-	-			-	-
NON-CURRENT ASSETS	55,117	56,023	54,691	52,399	51,795	51,823	51,766	51,092
Intangible assets	25,715	26,063	26,908	26,929	26,767	26,665	26,680	26,429
Goodwill	18,568	18,657	19,009	19,082	19,111	19,118	19,202	19,188
Intangible assets with a finite useful life	7,147	7,406	7,899	7,847	7,656	7,547	7,478	7,241
Tangible assets	13,311	13,692	13,971	14,022	14,100	14,094	14,292	14,348
Property, plant and equipment owned	13,311	13,692	13,971	14,022	14,100	14,094	14,292	14,348
Right of Use assets	4,847	5,177	5,554	5,517	5,488	5,545	5,528	5,355
Other assets	11,244	11,091	8,258	5,931	5,440	5,519	5,266	4,960
Miscellaneous receivables and other non-current assets	2,266	2,353	2,343	2,356	2,365	2,395	2,467	2,302
Non-current financial assets	2,330	2,089	2,011	2,140	1,651	1,697	1,300	1,172
o/w receivable for lease contracts	45	50	50	49	49	48	141	113
o/w other non-current financial assets	2,285	2,039	1,961	2,091	1,602	1,649	1,159	1,059
Deferred tax assets	3,513	3,470	3,441	772	769	779	782	790
Other investments	156	134	128	105	116	111	152	150
Investments in associates and joint ventures accounted for using the equity method	2,979	3,045	335	558	539	537	565	546
TOTAL ASSETS	69,187	66,295	66,569	63,107	62,027	61,281	61,329	61,567

TIM Group Balance Sheet

€m, IFRS 16

	FY '21	Q1 '22	H1 '22	9M '22	FY '22	Q1 '23	H1 '23	9M '23	FY '23
CURRENT LIABILITIES	16,364	13,739	14,200	13,214	14,142	14,069	16,542	14,862
Trade and miscellaneous payables and other current liabilities	9,473	9,655	9,410	7,591	8,199	8,019	8,158	7,894
Current financial liabilities	6,596	3,811	4,550	5,614	5,909	6,007	8,370	6,943
o/w liabilities for financing contracts and others	5,945	3,128	3,768	4,808	5,039	5,163	7,497	6,096
o/w liabilities for lease contracts	651	683	782	806	870	844	873	847
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	295	273	239	9	34	43	14	24
NON-CURRENT LIABILITIES	30,784	29,821	29,844	30,742	29,160	29,043	26,523	28,903
Non-current financial liabilities	27,501	26,579	26,469	27,506	26,336	25,861	23,516	25,967
o/w liabilities for financing contracts and others	23,437	22,185	21,762	22,804	21,739	21,177	18,806	21,393
o/w liabilities for lease contracts	4,064	4,394	4,707	4,702	4,597	4,684	4,710	4,574
Miscellaneous payables and other non-current liabilities	1,413	1,366	1,322	1,017	1,146	1,103	1,031	1,061
Employee benefits	699	700	812	972	684	965	943	843
Provisions	926	956	1,007	1,010	910	942	844	840
Deferred tax liabilities	245	220	234	237	84	172	189	192
TOTAL LIABILITIES	47,148	43,560	44,044	43,956	43,302	43,112	43,065	43,765
EQUITY	22,039	22,735	22,525	19,151	18,725	18,169	18,264	17,802
Equity attributable to equity owners of the Parent	17,414	17,786	17,590	15,461	15,061	14,463	14,428	13,992
Equity attributable to Minority Interests	4,625	4,949	4,935	3,690	3,664	3,706	3,836	3,810
TOTAL LIABILITIES & EQUITY	69,187	66,295	66,569	63,107	62,027	61,281	61,329	61,567

Domestic Results

€m, IFRS 16 & After Lease view

Preliminary Results Unaudited figures

		REPORTED							ORGANIC (1)
	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q4 '22 comparable base	FY '22 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Change YoY %	FY '23	Change YoY %
REVENUES	3,185	11,858	2,843	2,924	2,978	3,177	11,922	3,181	11,851	2,843	2,924	2,978	3,177	(0.1)	11,922	0.6
Service Revenues	2,822	10,799	2,551	2,644	2,675	2,851	10,721	2,818	10,792	2,551	2,644	2,675	2,851	1.2	10,721	(0.7)
Wireline Services Retail National Wholesale + FiberCop International Wholesale Other Mobile Services Retail Wholesale and Other Elimination & Other	2,180 1,429 490 260 1 779 649 130 (137)	8,276 5,332 1,969 969 6 3,060 2,577 483 (537)	1,986 1,253 498 226 9 701 610 91 (136)	2,059 1,285 517 248 9 719 615 104 (134)	2,028 1,275 505 242 6 781 630 151 (134)	2,241 1,496 499 241 5 741 638 103 (130)	8,313 5,308 2,019 957 29 2,942 2,493 449 (534)	2,176 1,429 490 256 1 779 649 130 (138)	8,269 5,332 1,969 962 6 3,060 2,577 483 (538)	1,986 1,253 498 226 9 701 610 91 (136)	2,059 1,285 517 248 9 719 615 104 (134)	2,028 1,275 505 242 6 781 630 151 (134)	2,241 1,496 499 241 5 741 638 103 (130)	3.0 4.7 1.8 (5.9) (4.9) (1.7) (21.2)	8,313 5,308 2,019 957 29 2,942 2,493 449 (534)	0.5 (0.4) 2.5 (0.5) (3.9) (3.3) (7.2)
Handsets	363	1,059	292	280	303	326	1,201	363	1,059	292	280	303	326	(10.2)	1,201	13.4
OPEX	2,307	8,339	2,261	1,824	1,992	2,268	8,345	2,222	7,678	1,843	1,817	1,855	2,165	(2.6)	7,680	0.0
EBITDA EBITDA Margin EBITDA After Lease EBITDA AL Margin	878 27.6% 747 23.5%	3,519 29.7% 3,007 25.4%	582 20.5% 454 16.0%	1,100 37.6% 966 33.0%	986 33.1% 853 28.6%	909 28.6% 769 24.2%	3,577 30.0% 3,042 25.5%	959 30.1% 828 26.0%	4,173 35.2% 3,661 30.9%	1,000 35.2% 872 30.7%	1,107 37.9% 973 33.3%	1,123 37.7% 990 33.2%	1,012 31.9% 872 27.4%	5.5 1.7 p.p. 5.3 1.4 p.p.	4,242 35.6% 3,707 31.1%	1.7 0.4 p.p. 1.3 0.2 p.p.
CAPEX net of licences % on revenues	1,059 33.2%	3,207 27.0%	606 21.3%	719 24.6%	728 24.4%	1,095 34.5%	3,148 26.4%	1,059 33.3%	3,127 26.4%	606 21.3%	719 24.6%	728 24.4%	1,095 34.5%	3.4 1.2 p.p.	3,148 26.4%	0.7 0.0 p.p.

Headcount EoP 40,984 40,984 40,906 40,903 39,186 37,901 37,901

Domestic Wireline

€m, IFRS 16

				REPORTED			ORGANIC (1)
	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q4 '22 comparable base	FY '22 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Change YoY %	FY '23	Change YoY %
WIRELINE REVENUES	2,389	8,821	2,169	2,251	2,242	2,460	9,122	2,385	8,814	2,169	2,251	2,242	2,460	3.1	9,122	3.5
Wireline Service Revenues	2,180	8,276	1,986	2,059	2,028	2,241	8,313	2,176	8,269	1,986	2,059	2,028	2,241	3.0	8,313	0.5
Retail Services o/w Broadband and content o/w ICT Services National Wholesale + FiberCop International Wholesale	1,429 491 520 490 260	5,332 2,023 1,593 1,969 969	1,253 482 373 498 226	1,285 494 396 517 248	1,275 499 383 505 242	1,496 507 587 499 241	5,308 1,983 1,739 2,019 957	1,429 491 520 490 256	5,332 2,023 1,593 1,969 962	1,253 482 373 498 226	1,285 494 396 517 248	1,275 499 383 505 242	1,496 507 587 499 241	4.7 3.4 12.9 1.8 (5.9)	5,308 1,983 1,739 2,019 957	(0.4) (2.0) 9.2 2.5 (0.5)
Other	1	6	9	9	6	5	29	1	6	9	9	6	5		29
Equipments	209	545	183	192	214	219	809	209	545	183	192	214	219	5.1	809	48.5
Retail lines ('000) Churn rate % Broadband Consumer Business (2) UBB								8,290 3.4 7,443 6,265 1,178 5,417	8,290 13.0 7,443 6,265 1,178 5,417	8,216 3.3 7,379 6,213 1,165 5,487	8,141 3.1 7,318 6,154 1,164 5,531	8,066 3.0 7,260 6,091 1,169 5,553	7,975 3.7 7,196 6,024 1,172 5,580	(3.8) 0.3 p.p. (3.3) (3.8) (0.6) 3.0	7,975 13.1 7,196 6,024 1,172 5,580	(3.8) 0.1 p.p. (3.3) (3.8) (0.6) 3.0
Wholesale lines ('000) Local Loop Unbundling Wholesale Line Rental Bitstream Naked UBB ARPU Consumer (€/month)								7,525 1,821 142 392 5,171 28.1	7,525 1,821 142 392 5,171 28.3	7,453 1,744 135 367 5,206 27.3	7,365 1,666 130 347 5,222 28.1	7,297 1,603 126 327 5,241 28.3	7,247 1,537 122 309 5,280 28.8	(3.7) (15.6) (14.1) (21.2) 2.1 2.6	7,247 1,537 122 309 5,280 28.1	(3.7) (15.6) (14.1) (21.2) 2.1 (0.7)
ARPU Consumer net of activation fees (€/month)								27.2	26.8	27.0	27.9	28.1	28.7	5.2	27.9	4.1

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)

Domestic Mobile

€m, IFRS 16

				REPORTED				ORGANIC (1)
	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	FY '23	Q4 '22 comparable base	FY '22 comparable base	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Change YoY %	FY '23	Change YoY %
MOBILE REVENUES	934	3,572	808	807	872	850	3,337	934	3,572	808	807	872	850	(9.0)	3,337	(6.6)
Mobile Service Revenues	779	3,060	701	719	781	741	2,942	779	3,060	701	719	781	741	(4.9)	2,942	(3.9)
Retail Services o/w Incoming Wholesale and Other	649 40 130	2,577 172 483	610 29 91	615 29 104	630 27 151	638 27 103	2,493 112 449	649 40 130	2,577 172 483	610 29 91	615 29 104	630 27 151	638 27 103	(1.7) (32.1) (21.2)	2,493 112 449	(3.3) (35.0) (7.2)
Handsets and Handsets Bundle	155	512	107	88	9 1	109	395	155	512	107	88	9 1	109	(29.5)	395	(22.7)
Total number of lines ('000) Churn rate % Human Not Human (M2M) Calling lines Human Calling Broadband Users LTE Users Usage Data (GB/users/month)								30,407 3.3 18,438 11,969 27,788 15,818 12,577 12,247 14.8	30,407 13.3 18,438 11,969 27,788 15,818 12,577 12,247 13.7	30,201 3.7 18,297 11,904 27,576 15,673 12,584 12,273 15.4	30,251 2.8 18,269 11,982 27,667 15,685 12,662 12,371 16.2	30,232 3.1 18,201 12,031 27,622 15,591 12,705 12,428 17.8	30,128 3.3 18,071 12,057 27,506 15,449 12,592 12,333 16.9	(0.9) (0.0 p.p.) (2.0) 0.7 (1.0) (2.3) 0.1 0.7 14.1	30,128 12.8 18,071 12,057 27,506 15,449 12,592 12,333 16.6	(0.9) (0.5 p.p.) (2.0) 0.7 (1.0) (2.3) 0.1 0.7 0.2
ARPU Consumer - Human calling (€/month)								11.1	11.0	10.7	10.8	11.1	11.2	0.8	10.9	(1.0)
ARPU Consumer - Human calling net of MTR (€/month)								11.0	11.0	10.9	11.0	11.3	11.4	2.9	11.2	1.6

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	Retail service revenues, consumer and business including voice, messaging, browsing and content
o/w Incoming	Revenues for voice traffic terminated on TIM mobile customers including visitors
Wholesale and Other	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	Total mobile customer base, human and not human ('000)
Churn rate %	Percentage of line lost on average nr of lines in the reported period
Human	Total nr. of human lines
Not Human (M2M)	Total nr. of not human lines, including machine to machine and data-only SIMs (eg. for tablets)
Calling lines	Nr. of active lines (calling at least once within the last month of the reported quarter)
Human Calling	Nr. of human active lines (calling at least once within the last month of the reported quarter)
Broadband Users	Mobile customers using data services
LTE Users	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)

TIM Brasil

Reported, R\$m, IFRS 16

	FY '21	Q1 '22	Q2 '22	Q3 '22	Q4 '22	FY '22	Q1 '23	Q2 '23	Q3 '23	Q4 '23	Change YoY %	FY '23	Change YoY %
REVENUES	18,058	4,727	5,368	5,611	5,825	21,531	5,640	5,863	6,056	6,275	7.7	23,834	10.7
Service Revenues	17,497	4,584	5,201	5,465	5,579	20,829	5,467	5,694	5,876	6,034	8.2	23,071	10.8
o/w Mobile	16,353	4,287	4,899	5,155	5,256	19,597	5,152	5,374	5,550	5,707	8.6	21,783	11.2
o/w Fixed	1,144	297	302	310	323	1,232	314	321	324	328	1.6	1,287	4.5
Handsets	561	143	167	146	246	702	173	169	180	241	(2.0)	763	8.7
OPEX	9,397	2,636	2,947	2,954	3,001	11,538	3,081	2,980	3,064	3,147	4.9	12,272	6.4
EBITDA	8,661	2,091	2,421	2,657	2,824	9,993	2,559	2,883	2,992	3,128	10.8	11,562	15.7
EBITDA margin	48.0%	44.2%	45.1%	47.4%	48.5%	46.4%	45.4%	49.2%	49.4%	49.8%	1.3 p.p.	48.5%	2.1 p.p.
EBITDA net non recurring	8,697	2,111	2,472	2,680	2,858	10,121	2,572	2,900	3,003	3,129	9.5	11,604	14.7
EBITDA margin	48.2%	44.7%	46.1%	47.8%	49.1%	47.0%	45.6%	49.5%	49.6%	49.9%	0.8 p.p.	48.7%	1.7 p.p.
EBITDA After Lease net non recurring	6,726	1,564	1,779	1,890	2,064	7,297	1,780	2,152	2,294	2,440	18.2	8,666	18.8
EBITDA margin	37.2%	33.1%	33.1%	33.7%	35.4%	33.9%	31.6%	36.7%	37.9%	38.9%	3.5 p.p.	36.4%	2.5 p.p.
CAPEX	7,966	1,328	1,050	977	1,375	4,730	1,289	925	998	1,292	(6.0)	4,504	(4.8)
% on revenues	44.1%	28.1%	19.6%	17.4%	23.6%	22.0%	22.9%	15.8%	16.5%	20.6%	(3.0 p.p.)	18.9%	(3.1 p.p.)
KPI's
Mobile Lines ('000) (1)	52,066	52,305	68,695	68,796	62,485	62,485	61,721	61,225	61,254	61,248	(2.0)	61,248	(2.0)
Market Share on total lines (2)	20.4%	20.3%	26.5%	26.4%	24.8%	24.8%	24.6%	24.4%	24.3%	24.0%	(0.8 p.p.)	24.0%	(0.8 p.p.)
ARPU Mobile (R\$/month) (3)	26.4	27.4	25.8	25.0	26.6	26.1	27.7	29.2	30.2	31.1	16.9	29.5	13.1
TIM UltraFibra Lines ('000)	685	689	699	708	716	716	732	761	791	802	12.1	802	12.1
ARPU TIM UltraFibra (R\$/month)	91.0	94.3	95.8	96.9	98.7	96.4	97.8	98.3	96.0	95.9	(2.8)	96.9	0.5
Exchange rate AVG YTD (R\$/euro)	6.36	5.87	5.56	5.47	5.44	5.44	5.57	5.48	5.43	5.40		5.40

Reported & Organic Reconciliation

€m, IFRS 16 & After Lease view

			Q4 '22				Q4 '23
			Non Organic elements		Organic
	Reported	Change in consolid. area	Exchange rate impact	Non recurring items	comparable base	Reported	Non recurring items	Organic
REVENUES	4,259	-	4	-	4,263	4,343	-	4,343
Domestic	3,185	-	(4)	-	3,181	3,177	-	3,177
Brazil	1,083	-	8	-	1,091	1,176	-	1,176
Other Activities & Eliminations	(9)	-	-	-	(9)	(10)	-	(10)
SERVICE REVENUES	3,850	-	4	-	3,854	3,971	-	3,971
Domestic	2,822	-	(4)	-	2,818	2,851	-	2,851
Brazil	1,037	-	8	-	1,045	1,131	-	1,131
Other Activities & Eliminations	(9)	-	-	-	(9)	(11)	-	(11)
EBITDA	1,402	-	5	(88)	1,495	1,493	(103)	1,596
Domestic	878	-	-	(81)	959	909	(103)	1,012
Brazil	524	-	5	(7)	536	587	-	587
Other Activities & Eliminations	-	-	-	-	-	(3)	-	(3)
EBITDA After Lease	1,122	-	3	(88)	1,213	1,224	(103)	1,327
Domestic	747	-	-	(81)	828	769	(103)	872
Brazil	375	-	3	(7)	385	458	-	458
Other Activities & Eliminations	-	-	-	-	-	(3)	-	(3)

For further questions please contact the IR team

Investor\_relations@telecomitalia.it