Telecom Italia Rsp

Investor Presentation • Aug 1, 2024

TIM ServCo H1 2024 Preliminary Results 01 August 2024

Disclaimer TIM Group

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

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

The H1 '24 preliminary managerial Financial Results and the information contained herein have been prepared by TIM's management for information and illustration purposes only.

Such H1 '24 preliminary managerial Financial Results are prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the EU (designated as "IFRS").

Please note that the H1 '24 preliminary managerial 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.

ServCo financial and operating results:

• Figures are based on "like-for-like" estimate of revenues, OPEX and CAPEX division between TIM and NetCo components, considering the final perimeter
• Relationship between TIM and NetCo (as per MSA Agreement):
  • Simulates the effect as the transactions occurred in Jan. 2023 (to guarantee a "like-for-like" comparison YoY)
• Temporary relationship between TIM and NetCo (as per TSA Agreement) are not considered in the figures
• TI Sparkle is currently considered into TIM Domestic perimeter

TIM Group perimeter - From integrated to ServCo view

NetCo disposal successfully completed

• ✓ Massive deleverage achieved, significant credit rating improvement and capital structure optimization
• ✓ MSA with NetCo: TIM most favored client with no value/volume commitments

Robust H1 performance, financials in line or ahead FY guidance

• ✓ Domestic Revenues and EBITDA AL growth on track, H2 supported by positive drivers
• ✓ Transformation Plan execution ongoing: >100m EBITDA AL-CAPEX savings achieved in H1
• ✓ TIM Consumer: stabilization of topline ongoing and already delivering thanks to "beyond connectivity"
• ✓ TIM Enterprise: accelerating growth fueled by ramp up of National Strategic Hub
• ✓ TIM Brazil: delivering continued growth both in mobile and fixed
• ✓ Group performance fully on track, ≤2x Net Debt AL / EBITDA AL target by YE 2024 confirmed

H1 '24 - TIM ServCo

Revenues * € 7.1bn € 4.9bn Domestic

EBITDA After Lease * € 1.8bn € 1.0bn Domestic

CAPEX * € 1.0bn € 0.5bn Domestic

EBITDA AL - CAPEX * € 0.8bn € 0.4bn Domestic

Adj. Net Debt After Lease € 8.1bn post NetCo disposal

* Organic like-for-like figures. CAPEX net of licences

From ambition to reality

From ambition to reality - NetCo disposal successfully completed…

Closing fully in line with the announced terms and deadlines… …just 8 months from binding offer to EU Antitrust unconditional approval to deal completion… …following 2.5 years of intense work...

✓

…while improving the operations

…leading to material Group Net Debt reduction…

…and paving the way towards Net Debt FY target achievement

(1) Adjusted Net Debt AL on LTM Organic EBITDA AL (2) Organic EBITDA AL minus CAPEX net of licences (3) Excluding potential disposal of Inwit and Sparkle Total amount can be different to the sum due to rounding effects

TIM Domestic

MSA – TIM most favored client with no value/volume commitments

Duration	15y+15y automatic renewal at the same terms, unless otherwise provided for specific services
No commitments	No commitments on volumes or migrations from legacy services to fiber (1)
Most favoured client	For both TIM and NetCo, on non-discriminatory basis (2)
Exclusivity	Different exclusivity terms and duration for each service
Max. geographic FTTH availability	Possibility to access other players' infrastructure where NetCo's infrastructure not available
Preferred supplier	For B2B services, instead of exclusivity
Guarantee on performance	and relative penalties (3) SLAs/KPIs aligned with regulatory and/or market conditions

TIM Services (3) ACCESS Services NETWORK services B2B services ENERGY & REAL ESTATE TIM buying from NetCo TIM selling to NetCo FY '23, like-for-like figures, €bn and % weight 69% weight 15% 12% 4% Engineering, Delivery & Assurance P2P, Colocation, Legacy bandwidth & interconn. Data Center, IT Mobile/Corporate Network/BSS and IP Bandwidth 2.0bn(4) 0.1bn Key services between TIM and NetCo

(1) Minimum guarantees in terms of fees or volumes not contemplated. TIM only grants the acquisition of a minimum quantity of certain engineering services; however, based on the Business Plan such minimum quantity is sustainable and consistent or below TIM business plan (2) Guarantee of best possible price on products and services on a non-discrimination basis (3) Applied to all services (4) Cash view not considering deferred expenses related to Network services (€0.1bn in FY '23). P&L view €1.9bn in FY '23

Back to business

TIM, a new starting point beyond vertical integration

A portfolio of three entities with different industrial focus and economics

H1 '24 on track with FY guidance

Organic like-for-like figures, YoY trend (1)

	H1 '24	2024 Guidance	✓ Group Revenues and EBITDA AL in line or above FY guidance,
Revenues o/w Domestic	+3.5% +1.6%	+3-4% +2-3%	Domestic growing as expected ✓ target	H1 light on CAPEX due to phasing, acceleration in H2 to meet FY
EBITDA +13.0% After Lease +8.8% o/w Domestic		+8-9% +9-10%	✓ H2 growth supported by positive drivers, FY guidance confirmed TIM Domestic H1 H2e
			FTTH offering in white areas	+	+
			Selective repricing	+	+
CAPEX on rev. 13.5% 11.2% o/w Domestic	~15% ~14%	Geo marketing offers		+
		New DAZN deal		+
EBITDA AL +36.6% minus CAPEX +35.4% o/w Domestic			NSH ramp up (2)	+	+++
	+15-17% +11-12%	Upselling / Vendor consolidation		++
		TIM Brasil continued strong performance

(1) Excluding exchange rate fluctuations (average exchange-rate YTD 5.49 R\$/€) and non-recurring items (2) National Strategic Hub

TIM Domestic

TIM Consumer – Top line stabilization ongoing

Organic like-for-like figures, YoY trend

2.6x

≈

TIM Domestic

TIM Enterprise – Strong growth fueled by ICT

Organic like-for-like figures, YoY trend

TIM Brasil

TIM Brasil – First half at high note all around

Organic YoY trend

TIM Domestic

A more sustainable cash cost structure

Cash view

TIM Domestic with less cash costs and a more success-driven model vs. the integrated view

TIM Domestic with approximately ~0.2bn more EBITDA AL – CAPEX in H1, combined with massive deleverage

Steadfast EBITDA AL growth and margin improvement

Organic like-for-like figures, After Lease view, €bn

Both Domestic and Brazil contributing to Group EBITDA AL growth

Capital structure update

Use of NetCo proceeds…

€bn

(1) Excluding closing adjustments and deconsolidation of NRRP cash anticipation (2) Including € 2.3bn repayment of FiberCop intercompany loan Total amount can be different to the sum due to rounding effects See slide #7

…enabling capital structure optimization

After Lease view, €bn

20 (1) Net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets (2) "Accounting" amount including amortized costs (e.g. issue premiums/ discounts) and interests accrued and not yet collected (3) Including € 0.3bn derivatives unwinding (4) Including € 0.1bn securities pledged against a bank guarantee (5) 13.8bn net deleverage from NetCo disposal less 0.4bn deconsolidation of NRRP cash anticipation (6) Nominal amount

Total amount can be different to the sum due to rounding effects

NetCo disposal successfully completed within the announced deadlines and terms

Back to business, delivering robust performance in H1

• More sustainable cost structure
• Higher financial flexibility
• Full year guidance reiterated

Annex

Guidance 2024-'26 TIM Group

Organic data (1), € bn, including Sparkle (2)

(1) Excluding exchange rate fluctuations, non-recurring items and change in consolidation area. Group figures @ avg. exchange-rate 5.40 R\$/€ (2) Sparkle financials: Revenues net of intercompany ~€ 0.8bn in '23, ~€ 0.9bn in '24 and '26; EBITDA AL ~€ 0.1bn in '23, ~€ 0.2bn in '24 and '26; CAPEX ~€ 0.1bn in '23 and '24, ~€ 0.2bn in '26 (3) Preliminary unaudited figures (4) Leverage at FY '23 based on old Group view (5) Computed as Group Net Debt AL less expected deleverage from NetCo disposal, divided by Group Adj. Organic EBITDA AL less NetCo EBITDA AL

24

Further questions

please contact the IR team

(+39) 06 3688 2500

Investor\_relations@telecomitalia.it