Slides
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1 H1 2025 Results 6 August 2025
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2 TIM Group Q2 2025 Highlights Monetization of ~€ 1.0bn ‘98 Concession Fee through factoring R$ 5.0bn bonds issued in Brazil, significant improvement in terms Stable competitive dynamic in Italy, highly rational in Brazil Solid Group and Domestic operational and financial delivery, results on track Changes in the management team
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3 H1 ‘25 results on track both at Group and Domestic level… TIM Group (1) Group figures at average exchange-rate YTD 6.29 R$/€. Excluding non-recurring items and exchange rate fluctuations (2) Adjusted Net Debt After Lease / LTM Organic EBITDA After Lease 2025 organic figures, YoY comparison based on 2024 like-for-like, MSA and TSA included, Sparkle excluded unless otherwise specified, €bn and YoY trend (1) EBITDA AL minus CAPEXRevenues EBITDA After Lease CAPEX Eq. FCF After Lease Net Debt After Lease GROUP 0.9bn +11.9% 6.6bn +2.7% (o/w services +3.3%) 2-3% growth 1.7bn +5.0% ~7% growth 0.8bn 12.6% on revenues ~14% on rev. -0.1bn incl. Sparkle -1.0bn in H1 ’24 ~0.5bn ex. Sparkle 7.5bn incl. Sparkle 2.06x leverage (2) <1.9x ex. Sparkle DOMESTIC 0.5bn +9.9% 4.5bn +1.6% (o/w services +2.2%) 1-2% growth 1.0bn +4.2% 5-6% growth 0.5bn 10.6% on revenues 12-13% on rev. Guidance 2025
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4 …with expected acceleration supported by positive drivers TIM Group Domestic EBITDA AL Organic figures ex. Sparkle All figures in €m 2024 2025 420 498 528 485437 520 Q1 Q2 Q3 Q4 (973) (55) 193 514 (198) 77 Q1 Q2 Q3 Q4 2024 2025 H1 ‘25 H2 ‘25 TIM Consumer price ups (1) + ++ NWC seasonality - + Positive drivers enabling strong acceleration in Q4 FY ‘25 guidance confirmed Group Equity Free Cash Flow After Lease, incl. Sparkle Higher EBITDA AL + ++ TIM Enterprise business seasonality + NSH acceleration in Q4 + Cost of labour + CAPEX phasing -+ Transformation Plan incl. MSA + ++ (1) Both on Consumer and SMB segment
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5 TIM Consumer with resilient top line and positive outlook thanks to improving KPIs TIM Consumer (1) Including TSA (€21m in H1 ‘25, o/w €10m in Q2 ‘25) (2) Human calling Fixed ARPU Consumer, €/month 30,6 32,4 Q2 '24 Q2 '25 1,2% 1,2% 1,6% 1,5% Q2 '24 Q2 '25 Fix. Mob. Churn Consumer, monthly average Organic figures, €bn and YoY trend Fixed net adds Consumer, k lines (84) (68) (67) (49) (53) Q2 '24 Q3 Q4 Q1 '25 Q2 Mobile net adds Consumer, k lines (94) (83) (141) (121) (103) Q2 '24 Q3 Q4 Q1 '25 Q2 MNP FTTH Net adds Consumer, k lines 67 69 82 89 79 Q2 '24 Q3 Q4 Q1 '25 Q2 KPIs 3.0bn +0.1% (-0.1% in Q2) o/w services +0.3% (+0.7% in Q2) Revenues (1) TIM CONSUMER 10,5 10,7 Q2 '24 Q2 '25 Mobile ARPU (2) Consumer, €/month H1 ‘25 +5.6% +1.4% ▪ 2025 repricing campaign: ~4.0m fixed and ~1.7m mobile Consumer lines priced-up in H1, lower than expected impact on churn ▪ MNP balance virtually neutral, confirming positive momentum in customer retention ▪ FTTH net adds market leader with ~80k lines per quarter in last 12 months and service coverage now including Open Fiber in black and grey areas ▪ Strong acceleration of 5G FWA, 70% Pop. Coverage, >2x net adds vs Q1 ▪ Customer platform: TIM Vision customer base double-digit YoY growth, acceleration in SMEs’ energy contracts H1 ‘25
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6 H1 '24 H1 '25 Backlog +2 p.p. +5 p.p. TIM Enterprise solid growth fueled by Cloud services TIM Enteprise Organic figures, €bn and YoY trend ▪ Consistent and solid revenue growth ▪ Cloud the highest and fast-growing revenue driver (41% share of service revenues) ▪ Connectivity fully aligned with plan ▪ Renewed long-term partnership with Google ▪ High focus on strengthening infrastructure business ▪ Continued reduction of low-margin IT components to improve overall profitability 1.6bn +4.7% (+4.8% in Q2) o/w services +6.2% (+5.7% in Q2) Revenues TIM ENTERPRISE KPIs H1 '24 H1 '25 35% -3% YoY 24% -5% YoY H1 '24 H1 '25 2x Revenues from Factories % of revenues (1) 38% 27% Service revenue mix Weight on tot. and YoY change H1 ‘25 41% +25% YoY35% Cloud Other ITConnectivity Change in revenue mix % of service revenues 62% 65% H1 '24 H1 '25 Connectivity ICT Revenues from NSH Colocation Licensing Fix Mobile Security & IoT Other Services (1) % of TIM Enterprise total revenues from internally-generated services/solutions (2) Revenues from signed contracts to be delivered (2) Services
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7 TIM Brasil further delivering on operational excellence TIM Brasil (1) Average exchange-rate YTD @ 6.29 R$/€ (2) +3.2% vs. 5.35% IPCA LTM Organic figures, €bn and YoY trend (1) KPIs Mobile ARPU R$/month TIM UltraFibra ARPU R$/month 31,2 32,7 Q2 '24 Q2 '25 98,6 95,6 Q2 '24 Q2 '25 Revenues TIM BRASIL EBITDA AL CAPEX EBITDA AL - CAPEX ▪ Consistent growth, on track with plan ▪ Efficient operational execution, OPEX running below inflation (2) ▪ EBITDA AL margin increase, +0.4pp YoY to 37.8% in H1 ▪ Solid cash generation pace with double- digit EBITDA AL minus CAPEX growth YoY Mobile CB m lines 38% 40% 62,0 62,2 Q2 '24 Q2 '25 Postpaid M2M Prepaid 2.1bn +4.8% (+4.7% in Q2) o/w services +5.4% (+5.1% in Q2) 0.8bn +6.1% (+5.7% in Q2) 0.4bn 17.1% on revenues (13.4% in Q2) 0.4bn +14.5% (+12.0% in Q2) Most sustainable Brazilian company, #1 in B3 Sustainability Index H1 ‘25 +4.8% -3.0%
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8 Financials fully on track TIM Group Group CAPEX Net of licences 0,2 0,2 0,5 0,2 0,2 0,2 0,1 0,2 0,2 0,1 0,4 0,4 0,7 0,5 0,4 Q2 '24 Q3 Q4 Q1 '25 Q2 '25 comparable base Equity Free Cash Flow After Lease (1,0) (0,1) 0,2 0,5 (0,2) 0,1 Q1 '24 Q2 Q3 Q4 Q1 '25 Q2 '25 Group OPEX Adj. Net Debt After Lease All figures in €bn. Organic figures ex. Sparkle for CAPEX and OPEX; Reported figures including Sparkle for EFCF AL and Net Debt AL 21,5 8,0 7,3 7,5 7,5 Q2 '24 Q3 Q4 Q1 '25 Q2 '25 Integrated view Integrated view Figures may not add up due to rounding 1,7 1,8 2,0 1,8 1,7 0,5 0,5 0,5 0,5 0,5 2,2 2,3 2,6 2,3 2,2 Q2 '24 Q3 Q4 Q1 '25 Q2 '25 comparable base 10,8% 10,3% 13,0% 10,7% 10,6% 13,2% 12,5% 14,6% 13,9% 12,6% Domestic BrazilGroup YTD % on revenues Domestic BrazilGroup 77,6% 76,8% 77,5% 78,6% 76,9% 69,5% 68,3% 68,9% 70,1% 68,7% YTD % on revenues
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9 Thorough CAPEX and OPEX control with Transformation plan well on track TIM Domestic Organic figures ex. Sparkle, €bn weight (1) +6% -4% +6% -12% +21% Δ YoY 49% 51% 15% 31% 4% 3,5 3,5 H1 '24 H1 '25 Revenue driven Addressable costs o/w labor o/w industrial o/w G&A & IT +0.8% 24% of OPEX related to MSA Domestic OPEX (1) Excluding capitalized costs and other income Domestic CAPEX 0,5 0,5 H1 '24 H1 '25 Customer driven Mobile & backbone IP IT Data Centers Other 29% 24% 19% 13% 15% -0.8% weight Transformation plan mitigating inertial total cash costs increase 70 27590 115 FY '24 H1 '25 H2 '25e FY '25 target 2025 savingsCumulative savings Domestic EBITDA AL minus CAPEX Savings vs inertial plan, €m 44% of FY target achieved Legacy technologies decommissioning ICT vendor consolidation Calibration of service profile on legacy customers @ effective service needs Labour cost optimization Key drivers in H2
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10 Reduced leverage and tactical FX hedging translate into a higher credit worthiness TIM Group Leverage ratio (1) Interest coverage ratio (2) Debt-to-Equity ratio (3) 4,0x 3,8x 2,0x 2,1x FY '22 FY '23 FY '24 H1 '25 0,2x 0,5x 1,1x 2,1x FY '22 FY '23 FY '24 H1 '25 1,7x 1,9x 1,2x 1,1x FY '22 FY '23 FY '24 H1 '25 (1) Adjusted Net Debt AL/ LTM Organic EBITDA AL (2) LTM EBITDA AL minus CAPEX/LTM Net Financial Expenses AL (3) Gross Financial Debt/ Shareholders' Equity (4) Bloomberg Euro Corporate ex Financials BBB TR Index Hedged EUR & Bloomberg Pan-European HY ex Financials BB TR Index Unhedged EUR as of 31 July 2025. Source: Bloomberg 2025 FX BRL hedging strategy ▪ Liability management on the bond issued by TIMBRA in 2023 with additional ~R$ 1.7bn net proceeds ▪ 2025 hedging strategy exploiting favorable US$/R$ rate while retaining US$ exposure to hedge short US$ position that TIM Group has through Noovle that is being charged US$ linked costs ▪ c. 75% of TIM Brasil Equity Free cash flow hedged Ba2↑ Stable Moody’s BB Stable* S&P BB Positive↑ Fitch 2025 credit rating *Business risk profile upgraded New SACE loan and R$ Bond issue ▪ € 0.75bn SACE-guaranteed loan Supporting infrastructure development ▪ Monetization of ~€ 1.0bn ‘98 Concession Fee through factoring ▪ R$ 5bn bonds issued by TIM Brasil SA Larger size, extended maturity, lower spread TIM bonds’ returns converging to investment grade EU corporates (4) Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 TITIM 7 7/8 07/31/28 TITIM 1 5/8 01/18/29 BBB Index BB Index Jul-25 350 bps
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11 Closing remarks TIM Group Results and cash dynamic on track Enhanced credit rating profile ~€ 1.0bn ‘98 Concession Fee cashed-in through factoring, dispute moving closer to a resolution Guidance confirmed Changes in the management team
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12 Q&A
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13 Annex
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14 Q2 ‘25 results on track both at Group and Domestic level… TIM Group (1) Group figures at average exchange-rate YTD 6.29 R$/€. Excluding non-recurring items and exchange rate fluctuations (2) Adjusted Net Debt After Lease / LTM Organic EBITDA After Lease 2025 organic figures, YoY comparison based on 2024 like-for-like, MSA and TSA included, Sparkle excluded unless otherwise specified, €bn and YoY trend (1) DOMESTIC GROUP EBITDA AL minus CAPEX 0.5bn +5.0% 0.3bn +0.4% Revenues 3.3bn +2.6% (o/w services +3.3%) 2.3bn +1.6% (o/w services +2.3%) EBITDA After Lease 0.9bn +4.7% 0.5bn +4.4% CAPEX 0.4bn 11.4% on revenues 0.2bn 10.5% on revenues Eq. FCF After Lease +0.1bn incl. Sparkle -0.1bn in Q2 ’24 Net Debt After Lease 7.5bn incl. Sparkle 2.06x leverage (2)
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15 Capital structure TIM Group (1) Net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets and discontinued operations (2) “Accounting” amount including amortized costs (e.g. issue premiums/ discounts) and interests accrued and not yet collected (3) Nominal amount. Average maturity: 5.2 years (bond 5.6 years) € 10.9 bn Gross Debt AL (1) by currency by interest rate € 3.9 bn Financial assets (1) by type (2) by type(2) 75% 25% Cash & cash equivalent Other 70% 18% 11% 1% EUR USD BRL Other 74% 26% Fixed Floating 78% 17% 5% Bonds Bank & EIB Other 2025 ‘26 ‘27 ‘28 ‘29 Beyond Covered until 2028 Bonds Loans 5,7% 5,8% 5,6% 5,5% 5,5% 5,7% Q1 '24 Q2 Q3 Q4 Q1 '25 Q2 Debt maturities (3) Avg cost of debt YTD 1.7 1.4 1.5 1.6 0.7 2.8 Repayment of low- coupon bond in May ‘25
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16 Guidance 2025-‘27 TIM Group Excluding Sparkle and the effects of ‘98 Concession Fee. Organic pro-forma P&L figures (1), €bn, YoY growth and 2024-‘27 CAGR (1) Excluding non-recurring items, change in consolidation area and exchange rate fluctuations. Group P&L figures @ avg. exchange-rate 5.83 R$/€) (2) TIM Brasil flows based on annual exchange-rate published in Bloomberg Survey based on major banks projections as of 9 January ‘25 (avg. exchange rate @ 6.18 R$/€ in ‘25, 6.37 R$/€ in ‘26 and 6.20 R$/€ in ’27) (3) Including the effect of ‘98 Concession fee, 2025 Equity FCF would be ~€ 1.5bn (4) Adj. Net Debt AL/Organic EBITDA After Lease. Net Debt of TIM Brasil based on consensus exchange rate evolution (EoP exchange rate @ 6.21 R$/€ in ‘25) (5) Including the effect of ‘98 Concession fee on Net Debt, leverage would be ~1.7x Revenues 13.7 9.4 2-3% growth 1-2% growth EBITDA After Lease 3.6 1.9 ~7% growth 5-6% growth Eq. FCF After Lease (2, 3) ~0.5 CAPEX on revenues 14.6% 12.9% ~14% 12-13% 2024 actual 2025 ~3% CAGR 2-3% CAGR 6-7% CAGR 5-6% CAGR ~13% ~11% 2027 ~1.1 2026 ~0.9 Leverage (4) <1.9x (5) TIM GROUP TIM DOMESTIC 16 <2.0x
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17 Disclaimer TIM Group This presentation contains statements that constitute forward looking statements regarding the intent, belief or current expectations of future growth in the different business lines and the global business, financial results and other aspects of the activities and situation relating to the TIM Group. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected or implied in the forward-looking statements as a result of various factors. Consequently, TIM makes no representation, whether expressed or implied, as to the conformity of the actual results with those projected in the forward- looking statements. Forward- looking information is based on certain key assumptions which we believe to be reasonable as of the date hereof, but forward- looking information by its nature involves risks and uncertainties, which are outside our control, and could significantly affect expected results. Analysts and investors are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date of this presentation. The H1 ‘25 Financial results are prepared in accordance with the International Financial Reporting Standards issued by the International Accounting Standards Board and endorsed by the EU (designated as “IFRS”). The accounting policies and consolidation principles adopted in the preparation of the H1 ‘25 Financial Results of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2024, to which reference can be made, except for the amendments to the standards issued by IASB and adopted starting from 1 January 2025. Please note that the H1 ’25 and the H1 ‘24 Financial Results of the TIM Group are unaudited. Alternative Performance Measures The TIM Group, in addition to the conventional financial performance measures established by IFRS, uses certain alternative performance measures for the purposes of enabling a better understanding of the performance of operations and the financial position of the TIM Group. In particular, such alternative performance measures include: EBITDA, EBIT, Organic change and impact of non-recurring items on revenue, EBITDA and EBIT; EBITDA margin and EBIT margin; net financial debt (carrying and adjusted amount), Equity Free Cash Flow, Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (net of licenses). Moreover, following the adoption of IFRS 16, the TIM Group uses the following additional alternative performance indicators: EBITDA After Lease ("EBITDA-AL"), Adjusted Net Financial Debt After Lease and Equity Free Cash Flow After Lease. Such alternative performance measures are unaudited. These figures should not be considered as a substitute for the economic and financial information of which they provide a different detail, are unaudited, are produced for explanatory purposes only, and may differ from those that will be published in the financial statements prepared in accordance with IFRS. ▪ In the TIM Group H1 2025 financial and operating results, Sparkle has been classified, in accordance with IFRS 5, as Discontinued operations, as all the condition necessary for the completion of the sale are met. Therefore, the TIM Domestic perimeter does not include Sparkle, unless otherwise specified ▪ In order to provide a better understanding of business performance, organic H1 2024 like- for-like data are presented. Such data includes Sparkle as a Discontinued Operation (as required by IFRS 5 for comparison purposes), as well as the NetCo transaction as if it had occurred at the beginning of the reporting period (January 1) ▪ Cash flows and Net Debt After Lease are based on actual results either for 2025 and for 2024
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18 Further questions please contact the IR team Investor_relations@telecomitalia.it GruppoTIM.it