Slides
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1 9M 2025 Results 6 November 2025
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2 TIM Group Q3 2025 Highlights TIM Enterprise: robust Cloud revenue growth, LoI signed for JV with Poste on sovereign open-source Cloud and AI TIM Brasil: highly rational market, persistent growth and improving cash generation TIM Consumer: price dynamic marginally improving in Italy, PosteMobile MVNO signed, TIM Energia launched Solid Group and Domestic operational and financial delivery, results on track Best non-IG corporate bond placement in last three years
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3 9M ‘25 results on track both at Group and Domestic level TIM Group (1) Group figures at average exchange-rate YTD 6.32 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 1.5bn +9.9% 10.0bn +2.3% (o/w services +3.0%) 2-3% growth 2.7bn +5.3% ~7% growth 1.2bn 12.1% on revenues ~14% on rev. -0.1bn incl. Sparkle o/w +0.1bn in Q3 ~0.5bn ex. Sparkle 7.5bn incl. Sparkle 2.09x leverage (2) <1.9x ex. Sparkle DOMESTIC 0.8bn +8.2% 6.9bn +1.2% (o/w services +1.9%) 1-2% growth 1.5bn +4.1% 5-6% growth 0.7bn 10.2% on revenues 12-13% on rev. Guidance 2025
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4 Positive drivers unfolding, strong YoY EBITDA AL acceleration expected in Q4 TIM Domestic All figures in €m (1) Both on Consumer and SMB segment (2) Domestic EBITDA After Lease / Domestic Revenues 1,4461,506 420 498 528 485437 520 549 Q1 Q2 Q3 Q4 9M Domestic EBITDA AL Organic figures ex. Sparkle 4.0% 4.4% 4.0%YoY growth 2024 2025 +4,1% YoY 19.0% 22.0% 22.7% 18.9% 21.3%19.5% 22.6% 23.5% 21.9% Q1 Q2 Q3 Q4 9M Domestic EBITDA AL margin (2) Q3 actual positive drivers, tough YoY comps Q4 expected positive drivers, easy YoY comps TIM Consumer price ups (1) TIM Enterprise business seasonality + NSH acceleration Cost of labour Transformation Plan incl. MSA ++ + + ++ + + + ACHIEVED CONFIRMED Q4 ‘25Q3 ‘25 Q3 Domestic EBITDA AL margin increase +0,8pp YoY, +0,9pp QoQ YoY +0.6 p.p. +
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5 EFCF AL consistent with expected trajectory, ramp-up in Q4 TIM Group Figures incl. Sparkle, €m. H1 ‘24 TIM Group Integrated view figures FY ‘25 guidance confirmed Adj. Net Debt After Lease 7,988 7,266 7,519 7,498 7,545 Q1 H1 9M FY TIM Brasil buyback21,370 21,507 <1.9 leverage (1) (1) Adjusted Net Debt After Lease / LTM Organic EBITDA After Lease; including the effect of ‘98 Concession fee on Net Debt, leverage would be ~1.7x 2024 2025 Guidance Equity Free Cash Flow After Lease (1,028) 193 (835) 514 (321) (121) 55 (66) H1 Q3 9M Q4 FY Q3 NWC absorption Q4 NWC release 2024 2025 Guidance ~0.5bn EFCF AL drivers in Q4 ▪ Group EBITDA AL growth ▪ Higher CAPEX, limited impact on cash absorption ▪ Favorable NWC seasonality
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6 TIM Consumer with resilient top line TIM Consumer (1) Q3 ‘25 Fixed ARPU €32.5 (+5.6% YoY) (2) Q3 ‘25 Mobile ARPU €10.7 (-0.5% YoY) (3) Q3 ‘25 Consumer mobile churn 1.6% (as in Q3 ‘24), Q3 ‘25 Consumer fixed churn 1.3% (1.2% in Q3 ‘24) Fixed ARPU Consumer, €/month (1) 30.3 31.9 9M '24 9M '25 1.2% 1.2% 1.6% 1.6% 9M '24 9M '25 Fix. Mob. Churn Consumer, monthly average (3) Organic figures, €bn and YoY trend KPIs 4.5bn -0.4% (-1.5% in Q3) o/w services flat (-0.5% in Q3) Revenues TIM CONSUMER 10.6 10.6 9M '24 9M '25 Mobile ARPU (2) Consumer, Human calling, €/month H1 ‘25 +5.1% +0.1% ▪ Launch of TIM Energia powered by Poste, robust early momentum ▪ Repricing campaign: 4.0m fixed and 3.4m mobile Consumer lines priced-up YTD ▪ Fixed ARPU increase, better net adds trend thanks to push on FTTH and FWA 5G ▪ Consumer MNP balance neutral, driven by customer satisfaction and effective retention ▪ TIM Vision service revenues mid single-digit YoY growth in 9M 9M ‘25 Fixed net adds Consumer, k lines (233) (168) 9M '24 9M '25 222 241 36 80 >2x +9% +65k TIM Vision Service revenues 9M '24 9M '25 +4.8% o/w FTTH o/w FWA 5G Net adds Mobile net adds Consumer, k lines (162) (94) (83) (141) (121) (103) (122) (50) (49) (22) (16) (3) (11) 1 Q1'24 Q2 Q3 Q4 Q1'25 Q2 Q3 MNP Retail services flat YoY in Q3
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7 TIM Enterprise solid growth fueled by Cloud services TIM Enteprise Organic figures, €bn and YoY trend ▪ Consistent and solid revenue growth ▪ Cloud leads as highest and fast-growing revenue driver (41% share of service revenues) ▪ Strong IoT and Security growth driven by factory solutions ▪ Continued reduction of low-margin IT components to improve overall profitability 2.4bn +4.4% (+3.8% in Q3) o/w services +5.5% (+4.2% in Q3) Revenues TIM ENTERPRISE KPIs 9M '24 9M '25 35% -3% YoY 25% -5% YoY 9M '24 9M '25 2x 38% 27% Service revenue mix Weight on tot. and YoY change 9M ‘25 41% +23% YoY35% Cloud Other ITConnectivity Change in revenue mix % of service revenues 62% 65% 9M '24 9M '25 Connectivity IT Revenues from NSH Figures may not add up due to roundings (1) Revenues from signed contracts to be delivered Colocation Licensing Fixed Mobile Security & IoT Other Services Services 2024 2025e 3.8 4.0 Contracts backlog Total value, €bn (1)
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8 TIM Brasil further delivering on operational excellence TIM Brasil (1) Average exchange-rate YTD @ 6.32 R$/€ (2) +2.7% vs. 5.2% IPCA LTM Organic figures, €bn and YoY trend (1) Revenues TIM BRASIL EBITDA AL CAPEX ▪ Consistent growth, on track with plan ▪ Efficient operations, OPEX running below inflation (2) ▪ EBITDA AL margin increase, +0.8pp YoY to 38.6% in 9M ▪ Solid cash generation with double-digit EBITDA AL minus CAPEX growth YoY ▪ Share buyback of TIM Brasil SA, €56m in 9M, €49m in Q3 3.1bn +4.7% (+4.5% in Q3) o/w services +5.2% (+4.9% in Q3) 1.2bn +6.9% (+8.4% in Q3) 0.5bn 16.2% on revenues (14.5% in Q3) TIM Brasil #1 for 5G coverage of large cities 9M ‘25 KPIs Mobile ARPU R$/month +4.6% 31.7 33.1 Q3 '24 Q3 '25 927 975 52 52 978 1,027 Q3 '24 Q3 '25 Service Revenues €m Mobile Fixed +5.2% +4.9% Mobile CB m lines 38% 40% 62.1 62.2 Q3 '24 Q3 '25 Postpaid M2M Prepaid Mobile CB m lines 62.1 62.6 Q3 '24 Q3 '25 +470k
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9 Thorough CAPEX and OPEX control with Transformation Plan well on track TIM Group Group CAPEX Net of licences 700 699 503 506 1,203 1,205 9M '24 9M '25 comparable base Group OPEX Organic figures ex. Sparkle, €m (1) Weight on 9M ‘25 Domestic OPEX excluding capitalized costs and other income 5,221 5,235 1,516 1,558 6,714 6,775 9M '24 9M '25 comparable base Domestic Brazil Domestic Brazil weight (1) +5% -6% +4% -11% +14% Δ YoY 50% 50% 14% 32% 4% 24% of OPEX related to MSA Domestic Transformation Plan mitigating inertial total cash costs increase 2025 savingsCumulative savings Domestic EBITDA AL minus CAPEX Savings vs inertial plan, €m Legacy technologies decommissioning ICT vendor consolidation Calibration of service profile on legacy customers @ effective service needs Labour cost optimization Key drivers in 9M Revenue driven Addressable costs o/w labor o/w industrial o/w G&A & IT Customer driven Mobile & backbone IP IT Data Centers Other 26% 28% 17% 13% 16% weight 70 27590 43 72 FY '24 H1 '25 Q3 '25 Q4 '25e FY '25 target 133m savings in 9M ‘25 65% of FY target achieved +3% -7% -1% -9% +2% Q39M +0.3% +0.9% -0.1% +0.2% +0.3% -0.7%Tot. Domestic OPEX
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10 7,498 7,496 7,545 (369) (150) 3 (48) 566 (49) H1 '25 NWC Financial charges Cash taxes & others TIM Brasil minorities EBITDA AL minus CAPEX 9M '25 ex. TIM Bra buyback 9M '25 incl. TIM Bra buyback Net Debt AL broadly stable QoQ Adjusted Net Debt After Lease, €m Net debt AL evolution on track TIM Group Higher absorption YoY due to Days Payable Outstanding reduction Q3 ‘25 vs Q3 ‘24: higher income taxes, no more dividends from Daphne Q3 ‘24: net cash interests impacted by positive mark-to- market of marketable securities portfolio 1 3 2 Positive Net Working Capital contribution due to favorable seasonality Q1 Q2 Q3 Q4 2024 2025 WHAT TO EXPECT IN Q4 Q3 TIM Brasil buyback 4 Q3 ‘24 (42) (6) 560 +6Δ YoY 57 (54) 3 2(301) (68) (123) (27) 1 2 3
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11 TIM/Poste Italiane areas of synergies TIM Group TIM ENTERPRISE TIM CONSUMER Cost savings from joint procurement Under evaluation JV with Poste on Cloud services based on Generative AI and open-source technologies Letter of Intent signed MVNO contract for PosteMobile Contract signed Migration in Q1 2026 Launch of TIM Energia powered by Poste Italiane Available in 750+ TIM stores Positive market reaction Cross selling initiatives on retail and SMB customers Under evaluation
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12 Closing remarks TIM Group Results and cash dynamic on track, strong acceleration expected in Q4 Developing the strategic partnership with Poste Italiane, ongoing initiatives to generate synergies Guidance confirmed
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13 Q&A
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14 Annex
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15 Q3 ‘25 results on track both at Group and Domestic level… TIM Group (1) Group figures at average exchange-rate YTD 6.32 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 0.6bn +7.0% 0.3bn +5.8% Revenues 3.4bn +1.6% (o/w services +2.4%) 2.3bn +0.3% (o/w services +1.1%) EBITDA After Lease 1.0bn +5.9% 0.5bn +4.0% CAPEX 0.4bn 11.0% on revenues 0.2bn 9.3% on revenues Eq. FCF After Lease +0.1bn incl. Sparkle Net Debt After Lease 7.5bn incl. Sparkle 2.09x leverage (2)
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16 Capital structure TIM Group 67% 18% 14% 1% EUR USD BRL Other 72% 23% 5% Bonds Bank & EIB Other (1) Net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets and discontinued operations (2) Nominal amount. Average maturity: 5.8 years (bond 6.4 years) € 11.3 bn Gross Debt AL (1) by currency by interest rate € 4.2 bn Financial assets (1) by type by type 76% 24% Cash & cash equivalent Other 72% 28% Fixed Floating 2025 ‘26 ‘27 ‘28 ‘29 Beyond Covered beyond 2029 Bonds Loans 5.7% 5.8% 5.6% 5.5% 5.5% 5.7% 5.8% Q1 '24 Q2 Q3 Q4 Q1 '25 Q2 Q3 Debt maturities (2) Avg cost of debt YTD 0.5 1.3 1.3 1.5 1 3.9 Repayment of low- coupon bond in May ‘25 22 Sep. 2025 €500mm 5-year SUNs 3.625% Lowest yield of last 3+ years for a BB/BB+ corporate Tightest spread of last 15+ years for TIM 12% Sep. 2024
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17 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 17 <2.0x
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18 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 9M ‘25 and Q3 ‘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 9M ‘25 and Q3 ‘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 9M ‘25 and Q3 ‘25 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 9M 2025 financial 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 9M 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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19 Further questions please contact the IR team Investor_relations@telecomitalia.it GruppoTIM.it