Ladies and gentlemen, good morning. It's a great pleasure and an honor to be here today with you. What we'll do today, our Capital Markets Day is an important moment, but it's not the only one today. What I mean is that today we will disclose to you the number related to the main KPI strategic view perimeter of the four entities we described at the beginning of March when we presented the result of the last year. There will be another important appointment that is the fourth of August, when we'll share with you the result of the second quarter. What you can expect for today, with Adrian, our CFO, we'll go through the main number, KPI, strategic view related to our four different entities. What will come is during the Q&A session with the help of Claudio, our Chief Strategy Officer, Stefano Siragusa, our Chief Network Officer, Andrea Rossini, our Chief Consumer Officer, and Elio Schiavo, our Chief Enterprise Officer, we come with all the answers you will have on the Capital Markets Day numbers, the four entities numbers. Again, let's start, and we'll answer live at the Q&A session. Thank you. Hi, everybody. Back in March, during my first conference call as Chief Executive Officer of TIM, I said that bold decisions were required to build a better future for this company, and that we had identified a route for strong value creation by breaking up the group in four separate entities. This meeting today give us the opportunity to better explain our delayering plan and provide more details of the unprecedented action we are already undertaking. We will briefly recap the reasons why we have decided to go beyond vertical integration, and we'll explain the industrial focus and the economics of each entity. Finally, we will give the strategic option we are currently evaluating and outline our execution strategy. The end goal is to show you that the four entities can achieve better results on a standalone basis, and that we remain committed to maintain a sustainable capital structure for each of them for separation. In a nutshell, we want to show the hidden value of our group and explain the option that we can activate depending on the scenarios we'll be facing in the following, keeping the necessary flexibility. Before presenting detail, I want to recall the headwinds we are facing and that we are already addressing in our day-to-day operation. As a management team, our view is quite clear. No, better, it's clear. We firmly believe that TIM is a great company with incredibly valuable assets and a unique market positioning, but it operates in the most competitive and regulated market in Europe. This is a weakness that could become an upside, not yet embedded in the plan. In recent years, we have seen instead of market consolidation, as in other geographies, several new entrants, both in wireline and mobile, and you all know that price has fallen like in no other country. Furthermore, we are the operator with the toughest regulatory obligation, separation, replicability testing, retail, and regulation, even on the new generation network in all segments. At the same time, the cost of 5G frequencies were among the highest, and labor rules are among the toughest in the country. It's not an easy job. The status quo is challenging and call for unprecedented action. You will hear these words several times during my speech. Therefore, we decided to delayer TIM in a handful of focused units to unleash the strength hidden in the integrated model. Our driver is fundamentally industrial. We want to unlock growth, achieve better operational results, also focusing on efficiency and fund the investments that will shorten the path to sustainable cash generation. Value creation, asset valorization, and financial sustainability will come because of the successful execution of our plan. While our key priority in the short term is, and will continue to be, to improve the level of efficiencies. The four entities operate in different markets, face different competitive dynamics, and each has specific industrial focus and economics. It's clear that they need specific focus, having also different level of inefficiencies that we are already addressing. NetCo runs the infrastructure that connects more than 80% of fixed line in Italy, with the best network quality in Europe. After the investment cycle in FTTH, it will be a typical infrastructure company with a stable cash flow generation, benefiting also from the shift from copper to fiber. That will improve also the ARPU mix, the operational cost structure, and the CapEx in the long run. TIM Enterprise, the market leader in large enterprise and public administration segment, is the only infrastructure ICT player in Italy, and uniquely positioned as the natural reference player in a large and growing business of international players. It will continue to grow faster than the market, thanks to an unparalleled asset. That will fully develop its leading customer base and complete end-to-end offering. TIM Consumer has been fighting for years in a crowded and over-competitive market. We all know that it has lost momentum, but once the regulatory constraints are gone, it can achieve top line stabilization and even growth, high-quality positioning and strong consumer perception. We must be solid and efficient to be ready for a future in market consolidation. The name of the game for us is top line stabilization and alignment of the cost structures to the industry best practice. In Brazil, it operates in a market of over 200 million people, which has just gone from 5 to 3 players. It is delivering strong results and significant value to shareholders, with the highest free cash flow yield among LATAM telco players. It doesn't stop. It's about to accelerate, thanks to the upside from the Oi deal. What are the expected benefits of delayering? It makes sense, first of all, from a strategic perspective. For the first time, we have a clear view of the strength and the weakness of each business from strategic, economic point of view. Each entity will be single-minded with focused business model, a clear set of leading KPIs, a CapEx allocation tuned to its specific investment horizon, and the ability to onboard talent in the new businesses. Secondly, potentially breaking vertical integration also in view of extraordinary transaction, will enable to obtain a lifting of the regulatory constraints that have been locking TIM for years according to the European Electronic Communications Code. Wholesale operator free from cost orientation retail would enjoy regulatory relief as well. Therefore, by splitting NetCo and ServCo, we would enable the latter to compete on an equal basis with other players. Something impossible today. Lastly, a potential deal would also make sense from a financial perspective, enabling better capital allocation, higher visibility on the specific asset, and an easy to articulate story to investor which will increase the ability to attract external capital. Let me anticipate that we enjoy a sound liquidity position enhanced by the EUR 2 billion financing with the state guarantee. In the next quarter, we don't need to tap the capital market as our debt maturities are fully covered until 2024. We've always been prudent and conservative when it comes to refinancing our debt. Adrian will further elaborate on this in the third section of the presentation. Let's now move to the next section where we deep dive on the new TIM. The reorganization we announced back in March is confirmed. The new TIM will consist of NetCo, the network company, including national and international wholesale business and assets, and three service entities which will form ServiceCo perimeter. The enterprise and the consumer businesses, together with the relevant assets and TIM Brasil. As anticipated, Noovle, Telsy, and Olivetti that operate as separate product factories for the enterprise, will be integrated into its perimeter, thus enabling a fully integrated end-to-end product and service capabilities, but also realizing efficiency synergies within this framework. Domestic perimeter definition has been finalized. Brand and company will follow their natural allocation and so will customer. TIM Consumer will own the mobile network, will operate its own service and backbone platform exactly as the other operators and will preserve offering differentiation on a make or buy trade-off. Also, TIM Enterprise will operate its specific service platform and will retain selected backbone and access fibers. On top, it will own the data center infrastructure. Focusing a bit more on mobile, the network will be under TIM Consumer, with TIM Enterprise reselling 2G, 3G, 4G, and 5G services as a full MVNO once coverage is out. This means that TIM Enterprise will have its own mobile core network in order to retain service configuration and manage customer SIMs autonomously. All fixed network assets will be in the NetCo, including the entire access network, primary and secondary, as well as central offices and backbone fibers. Sparkle with its assets will also be part of the NetCo. Let's now deep dive on each of the four entities, outlining the market context, the strategic priorities, and medium/long-term economics and KPIs. We start from network because separating the fixed infrastructure from the rest of TIM's domestic activities is the single most crucial decision we should take. Despite TIM has considered this idea for many, many years, a strong internal consensus emerged only in recent months when it became clear that the advantages of vertical integration had been lost over time and much more freedom is needed to accelerate TIM's plan. To be clear, this is not the exact condition for other players. Let's share our view of the market, and as we all know, the market is under-penetrated in terms of broadband connections. Even more so when it comes to ultra-broadband. At the end of 2021, 66% of Italian households had a fixed broadband connection, of which 9%, only 9, were FTTH, compared to European average of 78 and 31 respectively. This is essentially due to structural factors, lack of cable operator, unusually high number of mobile-only families still accounting for approximately 50% of the total, and aged structural population with nearly quarter aged 65 or older. On the one hand, this is bad news, but we're optimistic. It's also good news on the other. It means that the market has still untapped growth potential. Actually, AGCOM has certified that in 2020, 2021, broadband connection increased by more than 500,000 lines per year. The market is growing. If the pandemic has been a catalyst over the last 24 months or so, other driver will support future growth. For example, the strong acceleration in FTTH or the push on the digitalization of public administration services funded through the recovery plan. That is why we expect fixed lines to grow 2% CAGR in 2021 to 2030 to reach approximately 24 million. Such growth will be fueled by FTTH take-up, thanks to coverage increase and copper switch-off. We estimate that 100% of connection will be ultra-broadband in 2030, with FTTH taking the lion's share with 70%+ of total connection. We not forget that FTTC is still an important asset, covering 51% of lines with a good level of quality, 64% higher than 50 Mbps, and 56% higher than 100 Mbps. Let me present some KPIs to allow that NetCo is the largest, most capillary, and advanced telco network in the country. Indeed, it is the infrastructure upon which the digitalization of Italy can progress. NetCo runs more than 80% of fixed-line connections, enabling Italian families, small, medium, large businesses, and public administration to communicate. Its asset portfolio is huge, 94% FTTx and 27%+ FTTH coverage, 21 million km of fiber in the ground, together with 127,000 fiber cabinets deployed nationwide. In terms of execution capability, the upgrade of the access network from copper to full fiber is progressing according to FiberCop's target we presented in August 2020. Further evidence of NetCo's unparalleled execution capability comes considering that from the pandemic outbreak in Q1 2020, it has laid 3 million additional kilometers of fiber, deployed 18,000 new fiber cabinets, successfully managed 8 million customer activations and migrations, and is ahead in the execution of Infratel school tender assigned last year. NetCo is filling the gap with alternative infrastructure operators, regaining market share in the wholesale arena. Our workforce is a plus that give us the capability to smoothly progress on our project according to schedule without depending on third parties, and this is a really huge strength. Don't forget that within NetCo's perimeter, we have Sparkle, ranked fifth among international carrier for its IP network that will fully develop through a selected expansion in new geographies. Lastly, our infrastructure DNA and leadership have enabled us to win in every single recovery fund infrastructure tenders. To understand the evolution of NetCo economics, let's share some of our assumptions. First of all, the figures are organic and include Sparkle. The FTTH deployment plan will entail a total footprint of around 16 million technical units for approximately 65% national coverage. Due to the increasing demand of FTTH and an inefficient infrastructure competition, we assume that NetCo's market share will progressively decrease over time. Still maintaining the majority of the market even after 2030, with the change in mix consistent with the market trend. Corporate service will disappear, and 100% of NetCo's assets will be ultra-broadband, of which, as we mentioned, more than 70% FTTH. NetCo's total revenue are expected to slightly reduce and subsequently recover as a mix of the loss of volume on one side and the evolution of the regulated price that incorporate a link to inflation reflecting higher commercial flexibility. No RID pricing model has been included in these figures. All cost buckets are expected to decrease over time, in particular. Personnel with headcount reduction linked to retirement and pre-retirement is already happening today, more than compensating the increase in the annual unitary cost. Net of rental and power, thanks to the acceleration of the decommissioning of all technology, which is expected to be completed by 2028, and the intrinsic efficiency of a full fiber network. Likewise, revenues, EBITDA is expected to slightly reduce and subsequently recover with margin on revenue at around 50% in 2050. The evolution of CapEx is primarily linked to the investment cycle on FTTH access. That is why investment will peak in 2025. Thereafter, NetCo will continue the FTTH rollout coupled to the deployment of fiber verticals that will still be significant for few years in line with the take up. However, overall CapEx intensity will start to slow down, trending below 15% of revenues in 2030. Consider that assurance and maintenance CapEx, which cover the on-prem activities for the management of trouble ticket, are expected to decrease with the change of mix in the migration to FTTH. Post 2030, we expect a further reduction with CapEx stabilizing at around 10% of sales. This will be the structural long-term CapEx intensity of NetCo. As a result of the above dynamics, EBITDA minus CapEx will grow 4x-5 x from EUR 0.4 billion in 2021 to EUR 1.9 billion in 2030, with a cash conversion rising from 22% to 72%. I remind you that NetCo will receive a recovery plan contribution of EUR 2 billion in 2024-2027 for Italia 1 Giga and the 5G Backhauling tenders. This amount is not included in the above figures. Therefore, cash conversion will improve proportionally. Moreover, an acceleration in the switch-off program of our central offices could be another upside further improving these numbers. Cash flow will be impacted by non-recurring items related to personal rightsizing, averaging approximately EUR 140 million per year from 2022 to 2030. Let me now present ServiceCo, starting with TIM Enterprise. First of all, we are talking about a large and growing market driven by increasing customer demand for ICT services. Overall spending will grow at 4% CAGR from EUR 55 billion in 2021 to over EUR 50 billion in 2030. Such growth will be fueled essentially by convergence between telco and IT, with core data services progressively integrated with cloud, IoT, and cybersecurity solutions. While connectivity will remain substantially stable with advanced connectivity compensating the decline of traditional services, cloud, IoT, and cybersecurity will grow high single digits or even double digits until 2025 and mid to high single digit thereafter. Not only this is a growing market, it is also healthy. Profitability of the various services range between 20% and 50%, also depending on the mix between in-house and outsourced component of the value chain. This is why the winners will be the players capable to offer end-to-end integrated solution, and TIM Enterprise is ideally positioned to be one of them. Let me explain what I mean. TIM Enterprise is a strong competitor already today and a natural reference player going forward. I can also add no other telco player in Europe has such good B2B business. I say so because it has four key elements that set it apart. First of all, it is a leader in the large enterprise segment and uniquely positioned in public administration with a large established customer base counting approximately 55,000 active references. De facto, it already serves all major top Italian corporation and public administration with 40%-50% market share in connectivity and 10%-15% in the IT. This is a very loyal customer base. Consider that we enjoy more than 20 years of continued relationship on average for the top 10 customers. Furthermore, it enjoys a healthy overall average contract duration of approximately 3 years. Second, it is the only infrastructure-based ICT player, thanks to its asset base, spanning from telco assets to the largest proprietary data center footprint in the country with 16 data centers, of which 7 are Tier IV. Consider that the second player after TIM has just one. I remind you that TIM Enterprise will own a proprietary backbone in strategic areas, more than 45,000 dedicated customer fiber lines, and a mobile network to maintain full offer flexibility to match client requirements and respond to top and public administration tenders. Third, it has a unique go-to-market capability, including 500 dedicated pre-sales and 1,000 sales who generate more than 3 million service revenues each on an annual basis. It's a pool of expertise not found anywhere else. On top, TIM Enterprise leverages a portfolio of strategic partnerships, including Google, Oracle, Microsoft, and VMware, offering best-in-class technologies and a joint go-to-market while being key tenants on each data center. Last, it has an unparalleled end-to-end ICT offering spanning from connectivity to cloud, including professional and managed services, IoT, and security. Already today, more than 20% of major clients buy the four services. Now, these four ingredients are not easily replicable by competitors. That is why they are pillars upon which TIM Enterprise will build its future. Today, our priority is to change the operational model, having Noovle, Telsy, and Olivetti work as separate product factories, create complex interaction and fragmented offering, which can translate in missed commercial opportunities and, at the same time, generating inefficiencies. We want to eliminate these drawbacks. TIM Enterprise will become a 360-degree tech company with a fully integrated end-to-end product capability. This represents a huge intrinsic value per se. Large banks, public administration or industrial manufacturers want to minimize operational complexity, adding one single counterparty capable to solve any technical issue they may have, be it on connectivity or on cloud or even on security in case of cyberattack. It's priceless. TIM Enterprise is uniquely positioned to deliver this. Our plan also entails a reskilling and competence injection, something we have already started doing. In terms of economics, our ambition are bold. We want to develop revenues from EUR 3 billion today to approximately EUR 5 billion by 2030, continuing to grow steadily above market. The mix will change in 2030. Combined IT services will generate 72% of total revenues compared to 59% in 2021. Cloud would be the single largest top-line contributor with almost half of total revenues. Visibility on the top line will increase thanks to contract duration expanding to up to 7-10 years, a typical duration in the IT market. It means that today backlog with approximately 60% of revenues till 2025 already secured will improve further. After business set up costs and higher labor costs due to onboarding of new talent, EBITDA will stabilize well above 50% driven by scale, optimize operating model, and increase internal capability to develop proprietary services. CapEx to sales will reach 10% by 2030 from 19% in 2021. There will also be EUR 220 million one-off CapEx between 2023 and 2026 to develop IT systems, backbone, and mobile core network. Cash conversion will be strong, rising from 39% in 2021 to around 70% in 2030, in line with top ICT and tech companies. Additional restructuring costs over the entire plan will support personnel rotation and refresh of competence mix. We see multiple possible upsides not yet factored in the plan. They include the tender with Ministry of Interior for mission critical communication to law enforcement, the expansion of TIM Enterprise go-to-market into the medium segment, and the reselling to TIM Consumer and other players of proprietary or the shared product. To achieve our ambition, we have a clear time frame which is articulated into three major steps. From foundation until the end of 2022, followed by 18-24 months for the evolution in a standalone company with own infrastructure and ICT capability. The steady state will be achieved in 2025, enabling to accelerate growth. Now, let's move to TIM Consumer. At the beginning of the presentation, I said that the end game today is to show you that the four separate entities can achieve better results on a standalone basis. This also applies to TIM Consumer. I don't hide that this is probably the biggest managerial challenge we are facing. I will be blunt. TIM Consumer is a restructuring case. Nonetheless, you can rest assured that it will be an industrially sound business. It will not happen by magic. It will take time, management effort, relentless focus, but we know what to do, and we are committed to do it. There is no doubt in my mind that we'll realize our ambitions. Now, let's start our journey. In terms of the overall consumer market, the situation is well known. No need to repeat how intense the competition is both in wireline and in mobile. To understand the magnitude of such pressure, consider that the combined revenues of all the Italian telco players in 2021 were 54% lower than 2011, while combined CapEx were 50% higher in the last 10 years. The market has lost 85% of its EBITDA minus CapEx generation from EUR 10 billion to EUR 1.5 billion last year. This is to say that all players are under pressure and TIM is no exception. What is the way forward? First of all, it's important to clearly identify and classify the issue we are facing. Some are company specific, some other are market related. The former fall entirely under our control and we have all the managerial levers to address them. I will talk about them in a moment. Here, I want to briefly focus on market related issues. Looking ahead, market headwinds will persist. Spectrum cost for 5G frequencies are among the highest in Europe. A significant portion of 5G network is yet to be built. Traffic volume is expected to grow by 20%-50% per year in the next 5 years, further stretching current capacities. Last but not least, an unprecedented inflationary environment poses new challenges on us. Opportunities, opportunities are also rising. Increase of FTTH footprint will drive ultra-broadband fixed line growth and the reduction of the mobile-only customer. 5G will strengthen network capacity. Sharing of network infrastructure will enable to optimize investment and reduce run costs. Of course, consolidation could secure future market sustainability. In this context, the recovery plan will further support our 5G recovery expansion as we have been awarded all lots of the 5G tender, and we are also doing our part also to increase the overall sustainability of the market. We are committed to maintain strict price discipline, and we have proposed to index all sale prices to inflation, as in other European countries. How do we work to turn our consumer business around? TIM Consumer has significant potential to uplift its commercial and operational performance. First of all, delayering is an unprecedented opportunity for transparency and push on performance. It will enable to challenge and optimize the cost structure to be significantly leaner, which expect to enable higher commercial flexibility by lifting price replicability and allowing a level playing field with competitors. Finally, it will allow to manage the business segment end-to-end with full accountability. In other words, delayering will enable to fix the code, transforming our current consumer and this SMB business into an agile, efficient, commercially flexible premium operation. While fixing the core, we are building future, leveraging on our distinctive heritage, customer experience as key differentiator, trusted brand, best network quality. Fix the core means also, first of all, to improve how we operate in the market. In recent months, we, I have often said that TIM must shift its commercial model and conduct from volume to value. It's not a slogan. It means to radically change the way we do business on the basis of few clear principles. Incentive scheme based on customer value, digital channel first, store footprint rationalization, partnership with retail multipurpose store to complement distribution capillarity, shop as a point of experience adding products and services of partner, and mainly guaranteeing technical support. A value approach is a must. In this market, if you want to generate an additional EUR 100 million EBITDA, you must gain 15% market share, and this cannot be done without triggering another price war. I repeat, this is not what we intend to do as we want to be a rational player. To fix the core and build the future, we must stabilize revenue and optimize costs. We target top line stabilization, thanks to customer base flattening out from 2024 onward. Gradual ARPU increase to more for more approach and higher FTTH take-up, helping to reduce churn. Cost optimization will entail several initiatives. In 2026 versus 2021, our ambition is to reduce carrying cost by 50%, debt by 55%, and advertising expense by 20%. We will also rightsize the organization with a 20% FTE reduction. We don't want to be disruptive. We will leverage the same instrument and tool that already in use today, pre-retirement, Article 4, so on and so forth. FTEs will reduce from around 14,000 in 2021 to around 11,000 in 2026, and further action are still under evaluation. All in all, TIM Consumer addressable OpEx will decrease 34% in 2026 versus 2021. To improve structural efficiency, we also reduce the capital intensity of the business. We intend to implement active sharing agreement on mobile network with operator to reduce network CapEx by 20% and will redesign the IT architecture with the target to reduce IT costs, which really accounts for a sizable 18%. TIM Consumer CapEx will decrease 27% in 2026 versus 2021. This action will shape the financial KPIs in coming years. Revenues are expected to decline until 2023, and to grow from 2024 onwards to EUR 6.5 billion in 2026. EBITDA will decline in 2022 and will re-accelerate from 2023, with a margin stabilizing at 22%. In 2026, CapEx for sale will progressively reduce from current 16%-12%, with EBITDA minus CapEx growing to EUR 600 million in 2026, and cash conversion accelerating to 43%. These figures do not factor potential upside, such as in market consolidation, new regulation on power limits. We will articulate the transformation in 3 phases. In the next 6 months, we will adopt a restructuring approach focusing on activities that will deliver value in the short term, both in terms of cost and top line, with the objective to close the year at zero balance in terms of EBITDA minus CapEx. For the coming 12, 18 months, we'll focus on a full turnaround of our commercial and operating machine by implementing a more modern channel structure, improving our quality of service, adapting a new data-driven customer value management, and accelerating the organizational rightsizing. Lastly, the company will be ready to capture the full value of the connectivity, but also to scale the platform to a better proposition of digital services for consumer, achieving 10% EBITDA minus CapEx in 2026. The fourth entity is TIM Brasil. I want to start by recalling what we were able to accomplish in recent years. Our Brazilian operation become the most profitable company in Latin America space, with a clear leadership among its peers in margin indicators and free cash flow yield. Looking ahead, cash generation will accelerate even further, leading to a potential stock rating. Analysts today see TIM as having one of the highest upside versus its consensus target price, pointing to a potential enterprise value of approximately BRL 60 billion. We believe this is a recognition that our path to creating value and becoming next generation TIM is achievable. Our value proposition is unique and combines cash flow generation with our core business and growth acceleration with beyond connectivities initiatives. We expect to outgrow the market on all fronts as we become the best mobile operator in Brazil and expand our experience in new businesses. Consequently, we will be able to deliver superior and sustainable value with a better shareholder remuneration profile. TIM Brasil's value creation is a function of improvement on multiple fronts. Revenue growth will accelerate from mid-single digit compound rate to a high single digit one, with a significant contribution coming from the Oi transaction and exploiting 5G opportunities. While EBITDA is also increasing speed from mid-single digit to low double-digit compound growth again. Oi transaction has a profound impact as migrated clients arrive with higher margin than the average of the TIM Brasil base. The additional spectrum coming from Oi, together with the opportunity to exchange 4G to 5G investment, will help CapEx on revenue to start trending down from mid-20%s to mid-teens. All that can be summarized in free cash flow margin we expect Brazil to achieve. EBITDA minus CapEx on revenue will expand from 24% to more than 30% between 2021 and 2027. These strong trends have allowed us to double our remuneration to shareholder, leading TIM Brasil to enter the group of the high dividend yield in Latin peers. The potential upside include the reduction in the ICMS, the Brazilian turnover tax, from 28% on average to 18%. That could bring at least additional consumption elasticity and CapEx saving due to an accelerated 5G rollout, as explained in the company's meeting with the investor in June. I mentioned some of the positive impact of the Oi transaction, but let's go into some details of this transformational deal. TIM Brasil will create between BRL 16 billion-BRL 19 billion in value, which start materializing quickly. As a matter of fact, the positive impact already appearing less than 3 months after closing. 2/3 of the value will come from infrastructure with CapEx and OpEx saving in the network. BRL 4 billion-BRL 5 billion come from commercial drivers due to better churn trend, the shift in competitive dynamics, and on top of that, there is another BRL 1 billion in accelerating the commissioning of overlap cellular sites and tax benefits from goodwill amortization. Since the company was preparing itself for this moment for a long time, the BRL 7 billion+ in acquisition costs was well absorbed, with the company maintaining a healthy leverage position that should improve over time. Net of the acquisition cost, the value creation of the deal is expected to be more than BRL 9 billion. This transaction is truly transformational for Brazil from all standpoints. Our operation will be able to compete on equal footing for the first time in several years against its peers. The country's competitive environment is also improving, and we expect to continue this direction in the coming years. TIM Brasil will be able to generate significant additional cash as all the FX start to flow in. The future looks bright thanks to a healthy regulatory environment, and I'm confident the team in Brazil will maintain its solid track record of delivering outstanding results. Let's now move to the third part and final section of the presentation. Adrian will explain our capital structure strategy and give you highlights on the plan execution. Good morning, everyone. As Pietro has explained, our delayering plan for this, one, a clear separation of NetCo from the rest of the group. Two, reorganization of ServiceCo besides TIM Brasil into dedicated domestic divisions, TIM Consumer and TIM Enterprise to focus on telecommunications and ICT services. This will not only allow us to better focus from an operational standpoint, but also to consider strategic options with a flexible and concrete approach. We have started to prepare the separation, and many activities are currently ongoing. Let me give you more details on what we are doing. As mentioned, several preparatory activities were already launched while we were acquiring an in-depth knowledge of the challenges and significant opportunities in front of us. We have clearly identified perimeter of each entity, and a strong dedicated management team is in place. The FTE's initial allocation has been defined together with the short- and mid-term actions required for the right-sizing of its business, and we will finalize details over the next few months. At the same time, we have identified a detailed allocation of the efficiencies targeted in our transformation plan presented in our previous communications, of which we will give additional information during the second quarter results conference call at the beginning of August. In terms of financials, we have already appointed consultants to help with the carve-out process that is complex and time-consuming, but everything is progressing. Moreover, as you have seen in the previous slides, we have developed a dedicated set of financial projections for each business unit that we will maintain in the near future. On capital structure, I will give you more details in a few minutes. Let me now walk you through the key pillars of our delayering plan. This slide shows the leverage level, which we think is the target you should and could expect from the execution of the delayering plan, considering a potential scenario of vertical disintegration through the full disposal of NetCo and the minority stake in TIM Enterprise. The leverage is and can be made up of different components. This is because we have different levels, and we have optionality in the execution. As said, M&A discussions on important assets are ongoing, so it is difficult to predict the exact timing and exact financing that we will get, but we feel comfortable to achieve this level in our delayering plan if such transactions occur. We will come back on these points in a few seconds. We want to pass an important message to both debt holders and shareholders. To bond holders, a key objective of the delayering plan and new TIM Group will be the reduction in leverage and strong commitment to improve rating profile. To shareholders, you will benefit from the intrinsic value creation of this sustainable delayering plan. However, depending on the final outcomes of the M&A processes, there might be additional financial flexibility which could be used to accelerate growth and capture market opportunities or an ad hoc remuneration, but only if, let me stress once again, the amount of cash is such that the leverage is achieved. As said, this assumes TIM pursues its preferred route, namely overcoming the vertical integration through a NetCo deal. Out of total deleverage, you have conceptually two components. First, the consolidation of debt achieved through the NetCo separation. If we were to deconsolidate NetCo, we believe up to around EUR 11 billion of debt can follow NetCo perimeter given the quality and cash flow generation of the entity. This does not mean that we move this debt, as we will explain later. This just clarifies that once TIM deconsolidates certain cash flows, the company will also deconsolidate some debt. Exact amount will depend on the outcome of the M&A transactions, negotiations, and structures. The second component, the cash-in from M&A transactions, which include the potential disposal of NetCo, the sale of a stake in TIM Enterprise and, if needed, opportunistically assess any other options on other assets, assuming always that M&A terms are attractive. Let me comment on the first component. The preferred plan is clearly a deal with Open Fiber, not only because of the value of our assets, but also because of the significant synergies that can be created, and that's why we have signed the MOU at the end of May. We continue to work relentlessly on this front. Going beyond the vertical integration is also linked to the transaction with Open Fiber, as we expect a wholesale-only business model to be considered as a positive element in the pre-approval process. As said, successful outcome of the transaction depends on many factors. We'll execute the deal only at attractive terms in the best interest of both TIM's bondholders and shareholders. It is important to highlight that we have different options to achieve our goals, namely a transaction with Open Fiber with structural separation or disposal to infrastructure funds or other transaction structures and/or business models. The key point is that the deconsolidation of NetCo, independently from the structure, could bring up to around EUR 11 billion of debt out of TIM's balance sheet. Let me clarify. We are all focused in achieving the preferred plan, but we wanted to show that we also have thought about different alternatives, and we have the flexibility to execute. Alternative cases and their viability versus our preferred plan will be concretely assessed when if preferred plan is no longer achievable. Here, it's not about replacing one option or the other. It's more to stress the fact that TIM has alternatives to achieve its strategic goals, keeping a sustainable capital structure and appealing equity story. On the cash proceeds, as you can hopefully understand, they are confidential. M&A process is ongoing, and it is difficult and not even in TIM's interest to provide additional details until there is more clarity on these different transactions. On the other side, I do understand you all need some indication to appreciate TIM's story, and that's why we're guiding you towards what we think is a long-term sustainable capital structure to which we're committed to. Because this represents what we want to achieve with the execution of the potential deals included in our deleveraging plan. We have different levers to achieve such minimum cash in from disposals. We have flexibility to structure M&A transactions in a manner to achieve our goals. The most important message is that we are not in a hurry, and we have options. Let me show you why. We have discussed about our preferred plan so far, but we also want to show what happens if our preferred plan does not materialize or what is the intermediate picture, given that the NetCo deal will take some time to be fully executed. As discussed before, should the NetCo transaction with Open Fiber not be executed for any unforeseeable reasons or execution complexities, not the right value, we have alternative options to deleverage. Of course, it will not be as fast as contemplated in the preferred plan, but we are confident to achieve a sustainable leverage and thus allowing TIM to deliver its business plan. The deleverage plan will be accelerated by some massive monetization such as TIM Enterprise minority or potentially a further minority stake on NetCo. At the same time, it's worth noticing that our liquidity position is strong, and we are covered until 2024. We're not in a hurry to execute our plan, and we can articulate it in a way that maximizes value, and we're well equipped to navigate these challenging and volatile market conditions. Just a few words here to underline that before committing to any transaction, we intend to pursue a full rating assessment with the rating agencies, as our goal is to unlock value targeting a sustainable capital structure. We have done considerable structuring work on the current capital structure to ensure all envisaged transaction structures can be implemented in an efficient way and with an improvement in the leverage profile. Envisaged liability management actions for debt allocation, if any, will be decided once there is full visibility of the final structure, final negotiation of the M&A transactions. Here we do not have a final answer, but we want to reassure we are prepared to navigate all scenarios. Again, all the concepts shown in these last slides should be considered together with the results of the execution on the operations, of which we will be giving more information in less than one month. Let's now move to the timeline of the potential transaction of NetCo. The NetCo path towards vertical disintegration is first of all defined in the MOU signed at the end of May, which as everybody knows, targets the end of October for the binding documentation. We are getting ready to it, carrying out all the preparatory activities. Execution, including all relevant regulatory corporate approvals, will take approximately 15-18 months. We'll try to shorten this path as much as possible, but in any case, we must all recognize this is indeed a complex project, and time is also dictated by third parties, so not 100% under our control. In parallel, as I said before, we are assessing other strategic options. Now back to Pietro for the closing remarks. Thank you, Adrian. I'm conscious of time, and I want to give you the opportunity to ask questions. Let me just recap a few messages here. The delayering team is an unprecedented opportunity to unleash the strength hidden in the integrated model. We are running a well-balanced portfolio of distinct entities with different characteristics and a different level of maturity. We have identified clear tailor-made strategy for each entity, as well as dedicated management team to increase accountability. Our focus will be on execution. I will personally make sure that we deliver both in terms of operational results in the short term and in terms of the delayering plan we present today, as we know exactly what to do. We will be guided by the strong commitment to reduce leverage and improve rating profile, having different options that ensure the necessary flexibility vis-à-vis the status quo. Thank you, and let's now open the live Q&A session. Ladies and gentlemen, the Q&A session is now open. I'd like to remind you that if you want to register for your question, you can do so by pressing star followed by one. To cancel your reservation, press star followed by two. First question comes from Mr. Andrew Lee from Goldman Sachs. Mr. Lee, please. Yeah. Good morning, everyone. I had two questions, one on the NetCo monetization and then a second question on enterprise, which we all struggle to understand generally across European telco and how it can grow. Just interested in your fairly bullish commentary there. On the NetCo monetization, just wanted to understand what is the actual debate now. I mean, near-term sale is presumably only if an Open Fiber solution can be found. Is the debate on what the vehicle you'll sell into looks like in terms of owners, control etc.? Or is it really now just down to the price? What exactly is taking the time and effort now in terms of negotiations? Then just on the second question on enterprise. We've seen enterprise businesses across European incumbents decline for many years. That can also be in a growing market. You've identified that the market can grow by 4% annually in terms of revenue growth. Can Telecom Italia's enterprise business really grow within that, let alone outgrow the market at the 6% CAGR, I think you suggested? I don't think we've seen that before, across Europe or not sustainably. What's really changed? The question is, what's really changed in enterprise such that you believe you can now see growth in that business? Thank you. Thank you, Andrew. Let's go from the first question related to NetCo, and then we'll move to the enterprise. Related to NetCo, your question is, if I'm not wrong, is related in how the negotiation are proceeding and what is the situation right now, and you mention on why the negotiation took so much time. First of all, the last time that we discussed about the signature of the MoU, Memorandum of Understanding, our target date was the end of April. For the end of April, we were planning to sign an agreement, an MoU with Cassa Depositi e Prestiti. As we stated in a different situation, we prefer to enlarge the number of the players to be involved in the MoU. The MoU was signed with Cassa Depositi e Prestiti, Open Fiber, Macquarie and KKR, because sooner or later in this process, we should have involved this player. It makes much more sense to involve them since the beginning to speed up the process. At the end of the day, we signed the agreement in the second half of May. That is only some slight delay. Now the process is ongoing. There is an agreement about the perimeter of the NetCo. There are some small discussion related to minority element that doesn't change the sense of the deal and the economics of the business plan. It's quite clear that in this perimeter, we have all the primary and secondary network, all the central offices and passive component of the backbone. We are in a phase where we are sharing some information in a really compliant process because before to share any element, we go through our related party committee. We have a clear understanding about how much is important to be compliant in such huge deal. The process is ongoing. As we told, the MoU defined that there could be a possible binding offer by the 31st of October. As Adrian explained in the presentation, we can see the possible rollout. Then about enterprise. I think that, there's no other case in Europe as our enterprise perimeter. It's quite difficult to show to you which are the benchmark. Sometimes. Every time someone says, "What is the benchmark about that?" Sometimes it can happen also that you are the first one to do such kind of move. Then we have to remember also some of the characteristics of the Italian country. Why the market is expected to grow? I think that is well known that in Italy, the level of digitalization of the public administration and of all the country is delayed compared to other countries. Now, the recovery fund that was put in place by the Italian government has as one of the main item, the acceleration of the digitalization of the public administration, but also to try to explore the development of new technology in all the different industries. It will give us the opportunity to exploit this growth rate. In the past, there were much more erosion about connectivity because there were a change moving from voice, traditional voice and, with ADSL. Now we are experiencing a situation for a migration towards higher value connectivity. The fact that the enterprise is becoming more and more, a segment where the cloudification is becoming really important means that everybody will ask for a higher capacity bandwidth. The kind of application that the market will request are asking for a better level of latency. The use of 5G or of an improved level of, ultra broadband are also other element that allow us to be confident on the fact that we will not expect to have a reduction on the connectivity. I think that, also when we will see the result of the second quarter, some of these items will be also better clear and understandable. I really apologize that I didn't put in one presentation all the elements related to the four entities plan and the second quarter results. It could take four hours a day to go much in detail. Let me repeat again, will be very important to take a look at what we are discussing about in two different steps. Today is important to share the strategic view, the perimeter and the main KPIs and financial of the four entities. Then the fourth of August, we will show our results and how is proceeding our plan of cost transformation of the company that is going in a very positive way. I hope that I was able to explain to you what you asked. Yes, thank you very much. Next questions come from Mr. David Wright from Bank of America. Mr. Wright, please. Yes. Hello. Thank you for the presentation and the event. My questions, first of all, very simple one. Just, are the job cuts currently agreed with the unions, or will they require any additional restructuring expenditure? My second question is, do the enterprise targets include winning the government infrastructure contract? And if you don't win that, are you still comfortable outgrowing the market? Then my final question is just on leverage. I know you said that you would have, you know, detailed conversations with the agencies, et cetera, but I wondered if you had any early thoughts on what leverage a service co should be able to carry to maintain an investment grade rating. What level of net debt EBITDA we could potentially imagine that you would need, and then we can obviously think about, you know, how there could be any ad hoc remuneration, for example, in a NetCo sale. Three questions from me. Thank you very much, Giorgio. Hi, David. Thank you. I will answer to the first two, and I will leave the stage to Adrian for the third one. About job cuts, it's important to remember that we stated when we did the presentation to plan that in our plan we continue to apply the same tool and route we have used in the last eight years. Sorry to repeat that, but I think that it's important for our management team to guarantee to everybody that we stay coherent with what we say, because we have to gain the trust of the market about our capacity of execution and our approach that is transparent and direct. What we included in the existing plan is the use of the so-called Article 4. It is a kind of early retirement approach that, let me say, it's less aggressive in terms of guaranteeing also the employment level of employment stability. This is the main tool. It's something that we already did in the past. We have some discussion today with the unions that have a clear understanding about the situation and what is important to guarantee to all our colleagues, because let's remember, we are discussing about our colleagues, people that are sit on the right side of my desk. We have to take care of them, having in mind also our responsibility related to the profit and loss of the company. We have to guarantee also that the results of the company will always improve. The job cuts are something that we already applied in the last 8-10 years, and it's something that we are discussing with unions. We think that we can also do something more. I hope that you appreciate the fact that in all the presentation for each of the entities, we highlighted and also expressed in my speech that we have some upside. In the consumer part where we have, let me say, the ratio of employee on revenues, that is the less important, let's use this word, we clearly stated that there are other activity under evaluation. We'll try to work on that to further improve. The second is related to the enterprise, the PSN. In these days, the consortium is evaluating the possibility to apply the right to match. In our number of the plan is included the PSN. To be clear, for 2022-2024, the value are really marginal. Let's keep in mind that also in the plan, the value that we included are, let me say, conservative. I hope that in the following days, let's see what will happen, we can confirm something related to that. I leave to Adrian on the leverage side. Yeah, hi, David. Yep, as you mentioned, yes, we will be performing assessment for sure before any deal is closed. That we need to understand very well what the profile that we will have. Going directly to your question, what level of leverage we should have, it's difficult, it's hard to say because at the end it will depend, not only on the leverage but also on the profile of the ServiceCo, you know, that is TIM. What we are considering is that with this configuration, we can reach a target of having a net debt of below EUR 5 billion for the ServiceCo perimeter, if that's the final outcome. What can we consider in terms of leverage of this EUR 5 billion should be something below 2x the EBITDA. But again, I think it's what we should consider, you know, to have a specific rating. It's more on the rating agencies, and then depending also on the profile of the ServiceCo. Okay. Can I just one follow-up, please, on the first question on employee job cuts? Because I guess the accounting means you have stripped out the OpEx from the EBITDA guidance, but there will be a cash flow out. Is that correct? That's the traditional pre-retiree accounting. You've taken the benefit in EBITDA, so to speak, but there would be a quite significant cash outflow for those retiree payments. Is that correct? Let me divide the answer by two. First, what's happened with the early retirement that we will have a saving on the cost by 50%. The cash flow will be split during the 5 years. In terms of cash flow, what's happened is it will go through the 5 years or the 7 years related to what's happened. The accounting rules, Adrian, I don't think you want to No. Yeah. Again, David, you're right. I think that we gave enough disclosure of the effects of these different voices. You have it in on each business, what's the effect below the EBITDA. Yeah, you're right. We have the positives at the EBITDA level, but we also consider what are the initial negative effects of this agreement. Super clear. Thank you. Next question comes from Mr. Luigi Minerva from HSBC. Mr. Minerva, please. Yes, good morning, and thanks for taking my questions. The first one is about the potential combination with Open Fiber, and I was wondering what kind of remedies would you expect. Consequently, I suppose also what kind of regulation. I remember your ambition was for a RAB-style regulation for the NetCo eventually. I suppose that if the remedies involve disposal of some of the overlapping portion of the network, then perhaps RAB is no longer achievable because it must assume a natural monopoly of infrastructure. The second is a clarification on page 35, when you talk about the alternative scenarios, 'cause I mean, all your presentation, Pietro and Adrian, has been essentially a praise of, you know, dismantling vertical integration. When you mention about the alternative scenarios, you actually include only selling a minority of the NetCo. I just wanted to understand why. Thank you. Sure, Luigi. Thank you. About the combination. As I mentioned before, you know the four entities related possible upside, and I clearly stated that in this number, for example, is not included any idea of possible application of RAB process. For sure, what we are expecting, an improvement in some element that are not a guess. If you look at the Article 80 at European level, it clearly stated that in case of a pure wholesale player, the pricing can be defined based on a fair, reasonable approach. That it means not a cost orientation. That is something that we are experiencing today. For example, it's quite easy to understand that there will be the opportunity to recover inflation. It's something that we are experiencing today. Our continent was not seeing inflation in the last 20-25 years, and now we're experiencing a different economic environment. This is some of, or one of the element that we consider in that, on that. We weren't aggressive on assumption, also because it's a path, and we have to respect the different authorities, and we don't want to start to pull them from the jacket, starting to assume things. We have to do our job. We have to negotiate. We have a clear understanding of the regulatory environment that says that you can have a fair and reasonable pricing model, and this is what we can expect also if we didn't include that in an aggressive way in our plan. Related to the remedies, again, I don't want to start to have discussion about that. If you ask my personal opinion, I don't think that will be remedies related to price. We will see what's up, and also based on the configuration. Because if you start to discuss about what's happened today, 55% of the coverage is in white area with the concession. You have the PNRR. The overlap of the two network are really small, are not so big as everybody were intending. Let me say also another important element. The fact that there will be the PNRR areas to be built quickly due to the fine that we could receive if we don't build them, will put in a situation where before we build the PNRR areas and then the other one. The risk to, let me say, try or destroy possible synergies related to the overlap of the building of infrastructure is something that is postponed in the timeframe after 2025. Last, I want to be clear on this point. In some discussion with some of you, everybody say, "But perhaps you don't have clear idea if you have several scenarios." If I may describe to you that we have several scenario means that we have a clear understanding of the complexity of this process, and we have an answer for everything. If you ask us which is the preferred scenario, I don't have to tell you that the best scenario is the sale of the network to Open Fiber, CDP, and get a piece of the synergies. If they want to then strangle, I cannot understand on the basis. I've also described and told my shareholders a plan B. If it doesn't happen, what I can do? I can proceed in any case toward a vertical disintegration with another partner. Because, again, I was used, since I was young, by my father, that he always was used to tell me, "You must have always a B plan." In such a case, we have also a C plan. It doesn't mean that we don't have a clear understanding about which is the highest level of value generation. Let me compliment Luigi. The thing is, as we mentioned, it's plan of optionalities. That's why we showed in slide 35 this possible scenario, because at the end, we are committed to this possible deleveraging, because the vertical disintegration, it's not, it's totally linked with the value that we can get from on that asset. This is, yes, also a possible scenario, and that's why we're working also from that one. The thing is, we are committed to improve our level of leverage, and that's what we wanted to show. Thank you very much, both. I just have a follow-up because Pietro, you mentioned a very important point, which is inflation. I think it's crucial that the wholesale access prices can adjust to inflation with an escalator. When I look at the financials of the NetCo, the revenues actually seem broadly flat from 2022 until 2030. Should we conclude that inflation escalator is not in that guidance currently? No, because Luigi, when we say that we must be realistic, the number of revenues should increase if we were considered to be in a condition where there's no competition. In any case, if you look, for example, I will lose revenue in the white area because once the customer will migrate to the FTTH from FTTC, we will lose some revenue. We keep stable just because what will happen is that we will lose in some area some customer. It's the competition. In the meantime, we will offset that also based on the use of the up increase from traditional technology to FTTH and for the application of the recovery of inflation. I hope that I was clear, Luigi. Okay. Thank you so much. Next question comes from Mr. Giorgio Tavolini from Intermonte. Mr. Tavolini, please. Hi, good morning. Thanks for the presentation and for taking my questions. I was wondering if you could provide us more color on the DAZN renegotiation. Another one on the scenario through the consolidation of NetCo. In by 2025, around 50% of TIM EBITDA will be generated in Brazil. I was wondering if you are considering in that scenario any buyback of TIM Brasil minorities to reduce the minority leakage on free cash flow. The third question is just a final clarification on, so should we expect you to start providing the new accounting view by business units from the next first half results on top of your traditional accounting structure? Thank you. Okay. Thank you, Giorgio. Related to the third question, and then Adrian will give you more color on that. When I was discussing with the team about the I have to thank to my team for the huge job that we did, because it seems that we're discussing about that since a lot of time. Let's remember that at the beginning of March, just Adrian and me, Andrea arrived, and the remaining team is involved with Dario. There were people, as Claudio or Stefano, that stay with me starting from the end of November. I think that we did a huge job in this period. The most important thing that we reach is to have a much in-depth understanding about weakness and strength of our company in the four different entities. I'm telling that to you because the answer is yes. Starting from the last quarter, we are trying to understand if we will do just since the third quarter, we were able to show also to the market this number. Because a lot of you have some difficulty to understand how good the enterprise business inside our company. We have to follow this process, showing to you how things are proceeding, our number are improving. The answer is yes, we'll have that. Not just to share with you, but because this is an important tool for us to be able to manage the company. If you want to drive a car in a city that you don't know, you need a navigator. We need all this KPI to be able to achieve our target and to best understand how we can further improve the level of efficiency. I was discussing this morning with Dario, looking at the number of TopCo. I am quite sure that we have still margin to improve the efficiency. I don't want to seem bullish, but the people that you find in this company have a clear understanding and know how about the company. Related to DAZN, we are discussing. We don't have finalized anything. I don't want, sorry, Giorgio, to spend too much time on these things because you will see that we have a lot of time for the second quarter results when detailing now our numbers are improving. We will show you that, we are a management team that executes. We do what we promise, and it will be an important appointment. The last, NetCo, the consideration, I'll leave to Adrian this thing because it's not easy that I speak too much. Giorgio, the thing is, for us, that's not the number. What we think is that by 2025, TIM Brasil will account probably something around 35% of the EBITDA of the company. Probably depends on how you consider the exchange rate, but also how you consider the domestic perimeter in terms of EBITDA level. Again, I think that it's a different consideration what we can do with Brazil in terms of our participation. Nothing today on our table. We are working very hard with them. The results that are coming are really good. You will see much better results going forward, and especially for us, as you see in one of the slides, TIM Brasil is, it's extremely important in terms of cash flow levels. The yield that they're having is probably amongst the best ones in, between the peers in LATAM. For us today is a story of cash flows and growth. Again, nothing on our table today. On the last question, regarding the if we will show you results divided in four entities. Yes, for sure, we'll give you a lot of information with this view by the end of the year. Probably you will have something already in the next quarters, probably not a full accounting view, but yes, some KPIs and some orientation. At the end, this is how we will be handling the business, the organization tool. Today is already going towards this view of the businesses. We should be able to also follow in terms of economics and financials, the view that we are showing you today. Sorry, Giorgio, the colleague highlighted to me that I continue to talk about TopCo. That it was the internal name of the project. TopCo is TIM Enterprise, so really apologize, but I don't want to generate more confusion. TIM Enterprise. Okay. Thank you very much, Pietro and Adrian. Thank you. Next question comes from Mr. Andrea Devita from Banca Akros. Mr. Devita, please. Yes, hello. Thank you for taking my questions. The first one is on shareholder remuneration. I wonder whether your existing plan provides for a return to dividend already on FY 2022 results. At least on selling shares. The second point I see on the presentation, ad hoc shareholder remuneration when you talk about the leverage and cash-in from transaction. I wonder whether depending on potential cash-in from a disposal, you consider extra dividend and according to which parameter you would set this extra dividend. For example, if the net debt comes below the EUR 5 billion mark or depending on a threshold for debt to EBITDA of the ServiceCo. The second question is regarding potential sale of a minority stake in the TIM Enterprise. Everyone read about this non-binding offer from CVC at the end of March with a required 8 weeks exclusive negotiation. I wonder whether that one was a real offer, what was wrong, is the price or if you were not ready yet to consider this transaction and what would expect now against that offer. Thank you. Okay. I will start, Andrea, from the second one. Without going in detail because there's a confidentiality on that, we must be proud that a private equity firm, the CVC, was looking at us on a project that it was on a piece of paper. Today we don't have yet the company. We are showing you that we want it to proceed, define about the creation of the company. If based on a piece of paper, a so trustable and reliable fund is intended that this company has a value, it's something that is demonstrating that without perhaps that we are proceeding on the right path. We have to understand which is the best way to maximize the value for all the shareholders. This is something that the management is evaluating. in the next quarter proceeding, we will update you in the way in which all the activity of the overall plan is proceeding. Now I think we ought to because I think that the time is very short. Adrian, if you want to... Yeah, regarding the first question, there were two questions in one. The first one is about the possible dividend in 2022. I think that this will be a decision that The Board will take when we approve the full year 2022 results. Obviously it will depend a lot in terms of net income, it will depend a lot on different situations. We are not today in a position to answer that part of the question. Regarding the second part of this first question, I think that slide 33 is probably a statement for us. You know, we believe that there is a lot of value on the NetCo with the confirmation of Open Fiber. We believe there is a lot of value on our TIM Enterprise business. In terms of what can be a possible ad hoc remuneration, it will depend if the transactions occur and what value. At the end, the goal, the target for us is to have a sustainable leverage on the Service Co. It will be depending on that target. If there is space, we will analyze the situation obviously with our Board and obviously we hope that there could be an ad hoc remuneration. In any case you would go even below EUR 5 billion. This is not, let's say, a set number. If you got EUR 3 billion residual debt, you would be happy with that? Andrea, can you hear me? Can you repeat? If the cash-in from any deal would lead to a debt, say, EUR 2 billion because you sell the network in the best possible scenario at EUR 3 billion more, and you will get EUR 2 billion residual debt for ServiceCo, you would be happy with that, so keeping this extra cash to debt reduction? No. Again, our target is to be below five. two is well below five at the end. Obviously, we consider that it's healthy to have a leverage, but the leverage needs to be sustainable. Below five doesn't mean that it's gonna be two or three. We accept a leverage level that could be sustainable. You can do the math on that side. For us, this level that we mentioned of below 5 being something around or less than 2x the EBITDA should be sustainable for a company as ServiceCo. No, no, the question is just below, from press leaks, we read that the value of the NetCo has fallen from, say, EUR 17-EUR 31 for Vivendi to EUR 25 for obviously unofficial teams. It's just this question because of inflating it by the day, the value of the NetCo. I understand you cannot comment on that. It's fine for me. No, not on the valuation obviously. Thank you for understanding. Thank you. Yes. Next question comes from Mr. James Ratzer from New Street Research. Mr. Ratzer, please. Yes. Good morning, Pietro and Adrian. Thank you very much indeed for doing the event. I've got two questions, please. The first one, just looking at the assumptions you're making for NetCo, is, you know, a lot of the growth is really coming from EBITDA margin uplift rather than revenue growth. I was just interested in what you're thinking of longer term for the ability to shut down your copper network. Is that something that's baked into your plan and essentially then a forced migration to the FTTH network? Secondly, could you just go through again, you know, kind of what are the scenarios in which you might only sell a minority of the NetCo assets rather than a majority stake? I mean, presumably, if you could agree on the value of the equity, would you then be keen on selling the whole lot? I just wanted to run through what a scenario where it could only be a minority stake that gets sold. Thank you. James, about the business plan of NetCo, on the revenue lines, as we stated, we have the migration from old technology to FTTH, with the continuous increasing of the coverage of FTTH. As you can see in the chart that we're showing now, starting from 2017, the amount of CapEx in that we left will strongly be reduced because we completed the coverage of FTTH. It's much more, let me say, installation of vertical network building. On the OpEx side, we have also some efficiency that are related to the progressively shut down of the copper in different areas. Keep in mind that also with Open Fiber, also without Open Fiber, in the case of vertical disintegration, it will be also much easier to proceed to the switch off, and we can start to look at the number of customers per cabinet, because today the cabinets are also one important element of our energy consumption and maintenance costs. Different cabinets are connected to the central office, and we are already evaluating today how we can proceed on that. In the business plan, we have on the top line, market share loss that is offset by the application of a slight increase of price and ARPU increase related to the use of new technology. New technology, I mean, FTTH compared to copper and part on FTTC. On the CapEx, we have the progressive reduction on the CapEx. This is related to the fact that we will start to cover Italy because once you've covered more or less everything, it's difficult to invest, to do further outside our boundaries. On the OpEx, we have a progressive reduction of the cost that is related to the switch off, some efficiency, also the cost of labor reduction. Let me state also another element because on the overall CapEx, I was reading already some of the comments coming from the market. Let's remember that we have overall, in all the perimeter, but a good part is on the NetCo side, EUR 3.3 billion of CapEx related to the PNRR bidding that we won. Let's remember that we are the only player that participated to all the bid and that won for each of the bid, a component. What will happen in the 3.3 are entering as CapEx, but then they will be balanced in terms of grants for EUR 2 billion. On top of that, we'll have also revenue coming from this new activity. Related to the second question that is the case, I repeat, I don't want to generate misunderstanding. What we are foreseeing is to proceed in the agreement with Cassa Depositi e Prestiti. Second, we always stated that we had a B plan that is to proceed with another industrial financial partner losing the vertical integration. We put also a remote scenario to better explain to everybody that we are committed to the level, the company. This is the aim of that chart to put everybody on the same condition. Thank you, Pietro. Can I just go back to the point on the copper shutdown, the EUR 2.7 billion of EBITDA in 2030 in NetCo. Is that based on the assumption of shutting down copper in all the 65% of the country where you'll roll out FTTH? Or could there be more upside from that if you were to fully shut down copper everywhere you roll out FTTH? No, unfortunately, we don't have just one bullet to solve our issue in terms of cost efficiency. In that OpEx reduction, there are several activities that we're putting in place. Just to give you an idea, it's not me that say that. In all the world, everybody say that copper has a level of maintenance cost that is higher than FTTH. We have such a default rate that is different. Yeah, once we replace the copper with FTTH. Also, the maintenance costs will be reduced independently from the shutdown of the copper. Can we find a specific session with our IR to go through the details of the NetCo business plan? Because I agree with you, it's very interesting. It's one of the first case in Europe of this kind of activity, and you are right that you need some more details to understand better the plan. The logic is there are different lines that allow us to reduce the OpEx. I mentioned the maintenance, I mentioned the shutdown, the efficiency also on the energy, because the energy reduction is not only related to the shutdown, but the use of FTTH sometimes is much more efficient. Are all the reduction of the labor cost. These are all elements that allow us to further reduce our cost base. Great. Thanks very much. Next question comes from Mr. Jakob Bluestone from Credit Suisse. Mr. Bluestone, please. Hi. Thanks for taking the questions. I've got two, please. First, I just trying to understand your margins a little bit better in the enterprise segment. You basically show that your revenues will grow by sort of EUR 500 million + in TIM Enterprise between 2021 and 2025, but your EBITDA only goes up by about EUR 100 million, so there's sort of EUR 400 million + of additional costs. Can you help us firstly understand what are those additional costs coming from? And then secondly, if we look at the sort of conversion of revenue into EBITDA, initially between 2021 and 2025, it's very low, it's only about 20%. When we look from 2025 to 2030, there's a very high conversion of that revenue into EBITDA. You sort of assume EUR 1.5 billion of additional revenues by 2030, and EUR 700 million of additional EBITDA. Can you just help us understand a little bit why your revenue growth has such a low sort of margin impact initially, but longer term it then has a very large impact on your EBITDA? Then my other question was just briefly on the consumer business. I think you said you expect the low point for revenues to be in 2023, and then you expect growth from 2024. When do you see the low point for EBITDA in the consumer segment? Thank you. Related to the margin in enterprise, I think that it will be also much easier to understand once we disclose the number related to the 2025, 2026, 2027, 2028, 2029 and 2030. I'm still able to count. Because you will see that it's a progressive improvement. Why we have a level of the EA that is going to improve? During 2022, 2025, we will have also some inefficiency related to the fact that we are building a business. To do that, for example, while we continue to sustain part of the cost of the colleague that we started the early retirement, we will have to hire people to start to manage the contract with the different player. We are building also data center because there's a component of the TIM Enterprise business that is a kind of infrastructure business. If we are building some data center, it's completely true that our CapEx, but in the meantime, we have some costs that are related at the beginning for the maintenance, energy, so on and so forth. It's a kind of startup business. It's quite usual that if you divide it in pieces, also the enterprise business, you can see that you have a kind of data center business or cloud business. But it's not. We are not only reselling, we are building also our data center. It's quite normal if you look at the business that we have a phase of startup that then we start to generate a level of EBITDA that is much better. This is the answer also related to the conversion rate. As we stated since the beginning, also when we presented the first quarter results and the new plan, we thought that our company is facing a challenge that is quite different from the past, because we are facing today the fact that we have to build the FTTH network. We have to spend a lot of CapEx today to have a return in the medium long term. If you get just NetCo, you can see that all this CapEx will create a conversion to EBITDA in the long run that is much higher. A good part of the enterprise business is quite similar. It's a completely different situation, the consumer. NetCo, enterprise. Consumer is something completely different because it's a less infrastructural business. It's something that is not generating long term. The inflation rate, because it was also your question related to the consumer. Let's remember that is playing very well also in the other two calls, and I repeat, I don't want to repeat these things because I'm a polemic guy, but just to show you that we are current and we continue to say the same things. There were something that, in terms of comparison, was quite easy to understand, because let's remember that we have mainly in the consumer all the element that were related to the fact that we were selling two-year contract on the ultra broadband with the upfront and the reduction of the output. As explained, also if it is complex, I understand, in the different call that we'll have a rebound that is quite material. Because once we will finalize the two-year contract of the customer that signed this two-year contract, the output will start to grow. Let's remember again that we thought that we don't want to continue to be an engine of the acceleration of the washing machine. Here, give me 2 minutes because I want to be really clear on that. We can do the math. Whoever, not only TIM, whoever want to do EUR 100 million EBITDA on the consumer, to do that is to gain 15% of market share from the other player. Having in mind the other player will sit there with crossed arms, letting the other gain. This is not possible. It could create a kind of reaction from all the players, putting in place again the pricing war. This is the reason for which what we stated that we have to strongly work to increase the quality of our service, the image of our company, adding our other elements, because if we compete on price, you are completely right, it's very difficult to imagine that we can rebound. If we don't act like that, we are able, at the beginning of 2024, if I'm not wrong, to start to see the recovery or better, to go above zero, if I'm not wrong, then the recovery is already starting. I hope that the next quarter, because we don't have numbers finalized, we can show you that perhaps our strategy is right. Jakob, I hope that I was clear. If I was not, please. No, that's very helpful. Part of the question is regarding, yes, on the consumer, we said that, the lowest point in terms of revenues will be 2023, but in terms of EBITDA will be 2022. We are already foreseeing, a growth path starting on 2023, also with the DDA of the consumer. Thank you. That's very helpful. Jakob, it's clear that we have four entities with four different stories. Consumer is a restructuring. Our team on the consumer must be focused in improve the quality of the service to stabilize the top line, reducing the churn, but we have to work also at the level of efficiency on the cost base. Let's remember to everybody that in the first quarter call, we reiterate and we thought that we have a target to improve 15% of our cost base, that it's a good part on the consumer, and we clearly stated that the target that was distributed inside the company was 20%. These are completely different stories. Enterprise is a story of growth, and I'm sure about the growth of the enterprise market. NetCo, we are building today, it's an infrastructural business. Brazil, finally, let's remember that our group invested in Brazil until 2015, 2016. Brazil was cash flow negative until 2016. Now it's time to start to recover the investment that we have to put it in Brazil. Thank you. Next question comes from Mr. Fabio Pavan from Mediobanca. Mr. Pavan, please. Yes, good morning, all. Thank you for the presentation. Just one question, if I may. It's a follow-up on the leverage structure you are presenting. Could you walk us through the, let's say, the way we should move from around EUR 20 billion debt to below EUR 5 billion, sorry, and in particular, looking at the presentation, it seems you are retaining kind of financial flexibility. This means coming back to another question you have been asked a couple of minutes ago, we cannot talk about dividend coming back, but for sure, these EUR 5 billion seems to imply some cash out on top of the cash in from the potential disposal of the NetCo and potentially enterprise stake. Thank you. Fabio, it is for me a little joke. You remember me, a colleague of ours, when you say to him, "Please, a presentation, one chart," because you see it in 20 charts, he put the 20 charts just in one, in the PowerPoint version. He told us one question, a lot of this is not urgent. Okay. Hi, Fabio. Well, obviously, I think that we stated in the slide 33 and then slide 34, where we explain what we are thinking if all these, if this scenario, at the end, is achievable. For us, at the end, the most important thing is the target of leverage of ServiceCo. Then there should be different alternatives depending on the value we get and if we decide to go forward. It's obvious that the values that we read and considering both transactions, they could be valuable the actual level of the debt, and that could bring us t his financial flexibility, what does it mean, this financial flexibility? It will be a dividend payout, probably. It's something that we'll be deciding if this transaction goes forward and depending on the structure. What we did, yes, is we assessed very deeply our debt in every instrument, not only from the financial impact, but also from the legal point of view. We have a very deep knowledge of it, and we know which kind of debt will be better to contribute it to NetCo or to maintain it on our side. It will also depend on the level of leverage that we can see the NetCo can have. That's why we mentioned that up to EUR 11 billion can be moved somehow to NetCo. Definitely, if you've seen slide 34, at the end, there should be cash proceeds from this transaction, because there is a limitation in terms of leverage of NetCo. That's why we'll need to work on top of that possible EUR 8 billion-EUR 11 billion that we'll be moving. I don't know if I'm clear in the answer. Fabio, please let me know. Yeah. Yeah. Thank you. Thank you very much. Yeah. Fabio was joking. Yeah. Yeah. Next question comes from Mr. Domenico Ghilotti from Equita. Mr. Ghilotti, please. Good morning. A few remaining questions. The first is on the NetCo deal. Is it correct to say that your best scenario is having a full disposal of NetCo, so 100% in the case of the with Open Fiber, clearly not in plan B. Would you be ready to accept also a partial sales, reaching the consolidation with the partial, say, cash in? In the previous call, you were mentioning that the regulatory review will depend also on the structure of the deal. Can you clarify now if it will be a domestic or European regulatory authority to review the deal? That's on the NetCo. I have a question on the CapEx side, and you were mentioning that clearly you have raised the CapEx bar, including the PNRR funds, so investment. What is not clear to me is the timing. If I look at your comments on the proceeds in terms of cash flow from the recovery plan, it seems that it's coming later compared to the CapEx. If you can elaborate on that. Last question is on Brazil. The peak leverage is in 2022, and then they're starting to deleverage. You're saying it's a good cash generator. I wonder if you can expect an extra dividend at some point, so after 2022 when TIM Brasil is starting to deleverage. Would you consider that? Okay, Domenico. First question related to NetCo. To be clear, we clearly stated that the most important element is to lose the vertical integration. To lose the vertical integration, it means that we cannot have governance rights, because if I keep governance rights, it means that I'm not losing the vertical integration, and I cannot activate the Article 80 that I mentioned beginning, that allow to activate the fair and reasonable pricing orientation. The answer is quite normal. The best scenario should be a complete disposal, because to keep a stake of something without governance rights should be something that you do if you are not satisfied about the price and you would like to keep the stake because you are betting on a future improvement. We thought that we want to do a deal that is should be the right price to maximize the value for all our shareholders. About authorities, the rules are clear. If the NetCo should be acquired by company that is fully controlled by an Italian one, it can be at Italian level. If I see that we have an MOU with Macquarie and KKR involved, I think that they would be part of the acquisition process. If they would be part of the acquisition process, it's a kind of joint control. If it is a joint control with players that are outside the Italian boundaries, it goes to the European level. I hope that I was clear on that. About the CapEx, and then Adrian can help me. Let's consider that we have EUR 3.3 billion CapEx, something close to zero, like we say, 2022. The remaining 3.3 are from 2023 until the end of 2026, if I'm not wrong, or beginning 2027. Based on the different bidding, we have different delays to receive the grants that allow us to recover the money on the cash flow. The 1 Giga is between 12 and 18 months of delay, while on the other it's much faster, and it stays inside one year. What is important. We are not increasing the guidance. 2022, 2023, 2024, the delta CapEx that will come from that will be absorbed inside our guidance. I don't know if I forget something. No, I think that answered the first two questions regarding the. I forgot. Yeah. The third one, regarding Brazil, yes, the peak in terms of leverage is 2022, because of the acquisition of Oi assets. Then we should see the net debt level going down. The thing is, you ask about dividends, but we already decided, and it was disclosed by the company in Brazil that we will be doubling the shareholders remuneration, already starting next year or with the results of 2022. With this new level, we think that Brazil is in the right level in terms of yield compared also with its peers. We are pretty comfortable on that front. It's the right equilibrium in terms of value and in terms of remuneration for the shareholders. Again, we think that it's more important, the flows rather than the level of leverage. We'll be equilibrating these things going forward. Again, we already decided to double the shareholder remuneration. Okay, thank you. Last question comes from Mr. Carl Murdock-Smith from Berenberg. Mr. Murdock-Smith, please. Hi. Thank you very much for the question. I've just got a question on inflation again, but more on the cost side of things, specifically in NetCo, where you obviously have the OpEx going down over the next three years. Can you remind us of what the current agreement is with the unions? I think you're in the middle of a three-year agreement with a 1.5% pay rise every year, that expires next year. Can you just confirm if that's correct and kind of update us on how your pay talks are going with the unions and when the next round of pay talks will occur with the unions and what kind of pressure you're currently experiencing given inflation in Italy at present? Thank you. Yes. We are in a running process with the negotiation with the unions because we are discussing about the application of Article 4. I can tell you and I can confirm that unions are showing a great level of responsibility, also doing their job that is to defend the labor and the role. The contract will expire at the end of 2023 if I'm not wrong, but in discussion that we are having today, we are discussing also about that. In any case, what is important on the inflation that we have to work also on the revenue side to put our company on the safe side too. Because it's quite difficult to imagine that this industry is unable to pass the inflation on price. This is something that I hope can be also an important element to work on. Again, negotiations are ongoing, and we expect to finalize in the following weeks, and so we'll be able to discuss better on all the elements. I hope already in the first half and second quarter results. That's great. Thank you very much. Thank you, everybody. I hope that we were clear enough. Our investor relations team is at your disposal for all details. I understand that we are proceeding toward a journey that is quite complex. We are among perhaps the first one that is proceeding in the delevering process, so we are ready to go more in details. What is important to remember to everybody that this plan show, in a clear way, that we have optionalities to be activated to guarantee our main target. That is financial sustainability and to deleverage our company. From the strategic point of view, we have a well-balanced portfolio of activities. Brazil, that is, let me say, a cash cow. The NetCo, that is a business that is becoming infrastructure and will be a future cash cow. Enterprise, that is a very interesting business. Let me just mention something. Someone can say, "But is this achievable, the growth of enterprise?" 60% of the revenues of 2025 are already committed today. We are not bullish. We are very confident that enterprise is something that will give a new surprise to everybody. The consumer is something that it's a day-by-day activity to work on the level of efficiency. We are committed to execute, and I think that it's important to already define the next appointment. It will be the fourth of August, because you have to read what we showed today in the Capital Markets Day where I understand the main doubt could be, should be this management team able to execute once this company has a track record that is not exactly a Guinness? Let's meet on the fourth of August, and we'll show you that we are able to deliver. Thank you to everybody. Ladies and gentlemen, the conference is over. Thank you for calling.