Slides
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1 Preliminary FY 2025 Results and 2026 Update 25 February 2026
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2 #1 Key messages Pietro Labriola, Group CEO Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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3 Highlights New governance In place ‘98 Concession Fee outcome Positive New capital structure leaner, more efficient and remuneration-supportive Approved 2026 Guidance and growth trajectory Confirmed FY 2025 guidance Achieved Capital Market Day 2027-‘28 strategic plan update In H2 2026 Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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4 Preliminary FY 2025 Results and 2026 Update - 25 February 2026 #2 FY 2025 Preliminary Results Pietro Labriola, Group CEO Piergiorgio Peluso, Group CFO
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5 FY ‘25 - Strong results both in Italy and Brazil… (1) Group figures at average exchange-rate 6.31 R$/€. Excluding non-recurring items and exchange rate fluctuations (2) ‘98 Concession Fee impact on Adjusted Net Financial Position expected in 2026 (3) Adjusted Net Debt After Lease / Organic EBITDA After Lease Organic P/L figures ex Sparkle, YoY comparison based on 2024 like-for-like, €bn and YoY trend (1) EBITDA AL minus CAPEXRevenues EBITDA After Lease CAPEX Eq. FCF After Lease Net Debt After Lease (2) 1.8bn +16.9% 13.7bn +2.7% 3.7bn +6.5% 1.9bn 13.9% on revenues 0.7bn 6.9bn 1.86x leverage (3) 0.8bn +18.0% 9.5bn +1.9% 2.0bn +5.1% 1.2bn 12.4% on revenues 0.9bn +16.1% 4.2bn +4.6% 1.7bn +8.5% 0.7bn 17.1% on revenues Service +3.5% Service +2.7% Service +5.2% GroupDomesticBrazil
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6 (1) Group figures at average exchange-rate 6.31 R$/€. Excluding non-recurring items and exchange rate fluctuations (2) Adjusted Net Debt After Lease / Organic EBITDA After Lease Guidance met on all metrics Revenues o/w Domestic EBITDA AL o/w Domestic CAPEX on revenues o/w Domestic Eq. FCF After Lease Leverage (2) +2.7% +1.9% +6.5% +5.1% 13.9% 12.4% 0.7bn 1.86x FY ‘25 actual 2-3% growth 1-2% growth ~7% growth 5-6% growth ~14% 12-13% ~0.5bn FY ‘25 guidance <1.90x …meeting guidance for the fourth consecutive year… Organic P/L figures ex Sparkle, YoY comparison based on 2024 like-for-like, €bn and YoY trend (1)
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7 20.6% 21.3% 38.1% 39.5% 25.9% 26.9%TIM Group o/w Domestic o/w Brazil FY ‘24 FY ‘25 EBITDA AL margin increase (1) Delta OPEX After-lease (on a Pre-lease basis, Domestic OPEX increased € 64m YoY and TIM Brasil OPEX increased € 34m YoY) 4.0% 4.4% 4.0% 7.8% YoY growth Domestic174 ( 76 ) 186 ( 57 ) EBITDA AL FY '24 Domestic Δ Revenues Domestic Δ OPEX Brazil Δ Revenues Brazil Δ OPEX EBITDA AL FY '25 3,463 3,689 (1) (1) 43% of YoY growth 57% of YoY growth +6.5% (1) (1) EBITDA AL growth TIM Group Q4 domestic YoY growth supported by easy comps and positive drivers 2024 2025 420 498 528 485437 520 549 523 Q1 Q2 Q3 Q4 …with EBITDA AL margin growing in both geographies… Organic P/L figures ex Sparkle, YoY comparison based on 2024 like-for-like, €m (1)
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8 (973) (1,028) (835) (321)(198) (121) (66) 736 Q1 H1 9M FY Adj. Net Debt After Lease 2024 2025 7,988 7,266 7,519 7,498 7,545 6,854 Q1 H1 9M FY 21,370 21,507 Equity Free Cash Flow After Lease 2024 2025 Driven by strong Op. FCF Driven by non-repeatable items with partial reversal in 2026 (1) Adjusted Net Debt After Lease / Organic EBITDA After Lease 1.86x1.98x …and healthy cash generation supporting Net Debt AL reduction €m Leverage (1)
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9 (1) Q4 ‘25 Fixed ARPU €32.4 (+4.9% YoY) (2) Q4 ‘25 Mobile ARPU €10.8 (+1.1% YoY) (3) Q4 ‘25 Consumer mobile churn 1.6% (as in Q4 ‘24), Q4 ‘25 Consumer fixed churn 1.4% (1.3% in Q4 ‘24) Fixed ARPU Consumer, €/month (1) 30.5 32.0 FY '24 FY '25 1.3% 1.3% 1.6% 1.6% FY '24 FY '25 Fix. Mob. Churn Consumer, monthly average (3) KPIs 6.0bn -0.9% (-2.3% in Q4) o/w services -0.6% (-2.3% in Q4) Revenues TIM Consumer 10.6 10.7 FY '24 FY '25 Mobile ARPU (2) Consumer, Human calling, €/month H1 ‘25 +5.1% +0.4% ▪ Repricing campaign: 4.1m fixed and 4.2m mobile Consumer lines priced-up ▪ Fixed ARPU mid single-digit increase, better fixed net adds trend supported by push on FTTH and FWA 5G ▪ Consumer MNP balance neutral, mobile net adds trend affected by clean-up of silent lines in Q4 ▪ TIM Vision service revenues mid single-digit YoY growth FY ‘25 Fixed net adds Consumer, k lines TIM Vision Service revenues FY '24 FY '25 +4.6% o/w FTTH o/w FWA 5G Net adds Mobile net adds Consumer, k lines (141) (121) (103) (122) (510) (16) (3) (11) 1 3 Q4 '24 Q1'25 Q2 Q3 Q4 MNP Retail flat, Wholesale down also due to MVNO phasing (300) (230) FY '24 FY '25 304 319 46 127 o/w 392k silent SIMs clean-up TIM Consumer - Resilient top line Organic figures, €bn and YoY trend
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10 ▪ Consistent revenue growth ▪ Cloud: #1 revenue driver (42% of service revenues mix), hyper-growth engine ▪ Connectivity performance in line with expectations ▪ Increasing focus on Digital Sovereignty ▪ Continued IT solid growth driven by Security & IoT solutions ▪ IT margins streamlined, overall profitability improved 3.5bn +7.0% (+12.8% in Q4) o/w services +8.6% (+15.7% in Q4) Revenues TIM Enterprise KPIs FY '24 FY '25 32% -3% YoY(2) 26% +4% YoY FY '24 FY '25 2x 36% 28% Service revenue mix Weight on tot. and YoY change FY ‘25 42% +24% YoY37% Cloud Other ITConnectivity Change in revenue mix % of service revenues 64% 68% FY '24 FY '25 Connectivity IT Revenues from NSH Figures may not add up due to roundings (1) Revenues from signed contracts to be delivered (2) Net one-off items connectivity service revenues would be -2.4% YoY FY '24 FY '25 3.8 >4.0 Contracts backlog Total value, €bn (1) TIM Enterprise - Solid growth fueled by Cloud services Organic figures, €bn and YoY trend Colocation Licensing Fix Mobile Security & IoT Other Services Services
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11 (1) Average exchange-rate YTD @ 6.31 R$/€ (2) LTM inflation (IPCA) @ 4.3% vs. OPEX +1.7% YoY Revenues TIM Brasil EBITDA AL CAPEX ▪ FY results in line with plan, with revenues growing above inflation and OPEX running well below (2) ▪ EBITDA AL expansion and CAPEX discipline driving double-digit YoY cash generation growth ▪ TIM S.A. shareholders remuneration paid in 2025 ~€1bn in FY ‘25, o/w €119 buyback 4.2bn +4.6% (+4.4% in Q4) o/w services +5.2% (+5.1% in Q4) 1.7bn +8.5% (+12.7% in Q4) 0.7bn 17.1% on revenues (19.5% in Q4) #1 in network coverage and quality: ~1.1k cities with 5G, #1 rank in OpenSignal 5G consistent quality index for the 4 th time in a row FY ‘25 KPIs Mobile ARPU R$/month +4.6% 31.4 32.8 FY '24 FY '25 3,687 3,886 211 212 3,898 4,098 FY '24 FY '25 Service Revenues €m Mobile Fixed +5,4% +5.2% -84k TIM Brasil - Further delivering on operational excellence Organic figures, €bn and YoY trend (1) Prepaid Postpaid M2M Mobile CB m lines 51% 47% 39% 41% 10% 11% 62.1 62.0 FY '24 FY '25
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12 Group Opex (1) Weight on FY ‘25 Domestic OPEX excluding capitalized costs and other income 7,262 7,326 2,043 2,077 9,276 9,381 FY '24 FY '25 comparable base Domestic Brazil weight (1) +5% -3% +4% -9% +29% 52% 48% 14% 30% 3% MSA accounting for 22% of Domestic OPEX and reducing 11% YoY Revenue driven Addressable costs o/w labor o/w industrial o/w G&A & IT Δ YoY +0.9% +1.1% Group Capex Net of licences 1,214 1,183 721 720 1,935 1,90 3 FY '24 FY '25 comparable base Domestic Brazil Customer driven Mobile & backbone IP IT Data Centers Other 26% 34% 17% 15% 7% weight -2.6% -1.7% ▪ Domestic Opex slightly up YoY due to higher revenue driven (COGS related to ICT revenue growth), G&A and labour despite lower industrial costs (network and energy) ▪ Domestic Transformation plan delivered €266m cash costs reduction vs. inertial plan (130% of FY target achieved) ▪ Group Capex intensity around 14% of revenues ▪ Domestic Capex c. 50% for infrastructure and c. 25% customer driven ▪ CAPEX efficiencies enabled investment funding with reduced overall outlays CAPEX and OPEX control with Transformation Plan on track Organic figures ex. Sparkle, €m +1.7%
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13 7,266 6,854 2,003 (739) (598) 70 736 (270) (54) NFP AL EoP '24 EBITDA AL minus CAPEX Change in NWC Financial charges Cash taxes & Other EFCF AL Dividends & change in equity Disposal & financial investments NFP AL EoP '25 (1) ‘98 Concession Fee impact on Adjusted Net Financial Position expected in 2026 (2) Adjusted Net Debt After Lease / Organic EBITDA After Lease (3) TIM Brasil Serviços e Participações S.A. dividends to minorities (-€ 273m) including advance payment of 50% of dividends originally expected in 2026 (-€ 90m) (4) TIM Brasil buyback (-€ 119m) & sale of financial assets (+€ 88m) (5) See details in slide #36 412m Net Debt AL reduction 1.86x1.98x EFCF AL leading to significant Net debt and leverage reduction Adjusted Net Debt After Lease, excluding ‘98 Concession Fee, €m (1) Leverage (2) Net tax effect Incl. TIM Brasil buyback & sale of financial assets (4) Also incl. extraordinary items (pre-retirements & DAZN payments) Dividends to TIM Brasil minorities incl. 2026 anticipation (3) Incl. ‘98 Concession fee & reversal of wireline deferred contract costs, with no cash impact (5) (5)
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14 Preliminary FY 2025 Results and 2026 Update - 25 February 2026 #3 Special Topics Piergiorgio Peluso, Group CFO
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15 P&L impact ▪ Full P&L recognition in 2025, triggered by Court of Cassation final ruling ▪ Accounting treatment: – c. € 0.97bn as ‘Other Income’ (overall amount granted as damage compensation) – c. € 0.04bn as ‘Interest Income’ (accrued legal interests from April 2024 to December 2025) NFP impact ▪ Net Financial Position (NFP) impact expected in 2026, upon payment by the Italian Government ▪ Accounting treatment: – In 2025 → Cash-in offset by higher financial debt upon factoring deal closed in July 2025 → No NFP impact – In 2026 → Financial debt reduction upon payment by the Government → NFP impact In December 2025 the Italian Court of Cassation ruled in favor of TIM in a 20+ year-long legal dispute, triggering c. € 1.0bn not-appealable compensation Special topic #1 – ‘98 Concession Fee Increasing financial flexibility
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16 Share capital reduction, € Share capital Legal reserves Reserves Tot. Equity (1) Saving shares conversion, # Saving shares Ordinary shares Tot. shares Before (2) 11.7bn 0.7bn (0.3bn) 6.0bn 1.2bn 4.9bn 12.1bn 6.03bn 15.3bn 21.4bn - 21.4bn After (2) Benefits Re-balanced equity structure ▪ Re-aligning equity structure to the new asset base post NetCo disposal and to market standards Greater flexibility ▪ Restored available reserves enabling higher financial flexibility, including for shareholders’ remuneration Value accretive ▪ Removing saving shares preferential rights ▪ Aligning interests of all shareholders Simplified capital structure ▪ Improving stock liquidity and relevance in Indexes ▪ Removing dual share-class governance complexity and costs (1) Following approval by shareholders on 28 January 2026, pending completion of saving shares conversion process (see next slide) (2) Before TIM S.p.A. fiscal year 2025 net result, use of available reserves for saving shares conversion and use of available reserves for liquidation of unallocated saving shares subject to withdrawal Before After Benefits Special topic #2 – New capital structure (1/2) Enabling leaner, more efficient and remuneration-supportive capital structure (1)
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17 (1) Assuming no opposition by the Company’s creditors (2) In case of objection by the Company’s creditors, the conversi on can begin only after the obtainment of the Court’s authorization (3) The effective date of the conversion will be agreed with Borsa Italiana and announced via a notice on the Company’s website, including details on the share allocation and related cash payment (4 ) Conversion must be initiated within 6 months from the registration of the Capital Reduction resolution; this deadline may be extended by a furth er 3 months T0 T+90 Registration of shareholders’ meetings resolutions 29 Jan. End of creditors opposition window for share capital reduction (2) Unallocated shares subject to withdrawal liquidated by TIM through available reserves 29 Apr. Completion of both voluntary and mandatory conversions Last day of trading Voluntary conversion (3,4) Mandatory Conversion (3) T+15 End of withdrawal right for saving shareholders 13 Feb. Option and pre-emption offer (minimum 30-day period as required by law) 2 Mar. T+32 Saving shares conversion expected timeline (1,4) End MayMay Special topic #2 – New capital structure (2/2) Enabling leaner, more efficient and remuneration-supportive capital structure
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18 New wireline cost structure and reassessment of deferral period Cost category Nature Examples Direct & Recurring ▪ Variable, incurred as long as line is active ▪ FiberCop access fee, customer care, energy One-off ▪ Deferred, linked to customer activation/acquisition ▪ Delivery, provisioning, commercial New business context ▪ Wireline access network disposal completed in 2024 → Transition from infrastructure-based to variable-costs model ▪ Evolution toward ‘Customer Platform’ → Customer no longer defined by a single wireline, but by an ecosystem of services (connectivity, entertainment, energy, insurance, etc.) ▪ Wireline perimeter → From wholesaling to wholebuying Until 2025 (1) – Accounting based on avg. customer life (8 years) From 2026 (2) - Accounting based on pay-back of one-off costs (4 years) (3) (1) Until 31 December 2025 (2) From 1 January 2026 (3) Pay-back of one-off costs through the first margin (net ARPU – direct recurring costs) Recognition to P&L of wireline contracts one-off costs 1/8 booked to P&L in year of activation 7/8 deferred → Booked to P&L in next 7 years 1/4 booked to P&L in year of activation 3/4 deferred → Booked to P&L in next 3 years → → New business context requiring reassessment of deferral period Full cash-out in year of activation Special topic #3 – Accounting of wireline contract one-off costs Enabling stronger alignment between EBITDA and cash generation, no cash impact (1/2)
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19 Benefits ▪ Better alignment between EBITDA and Cash generation ▪ Strong industrial rational (future efficiencies in one-off costs more quickly reflected in P&L, leading to potential EBITDA improvement over time) P&L Impacts In 2025 P&L (Reported) In 2026 P&L and beyond (Reported and Organic) Reversal of one-off costs deferred in prior years (to align to 4 years) € 0.6bn non-recurring item booked as Opex No cash impact →→ 1/4 of new customers one-off costs plus yearly share of deferred costs balance Headwind Faster ‘amortisation’ of new customers Tailwind Lower deferred costs booked to P&L each year Neutral EBITDA net impact →→→→ Special topic #3 – Accounting of wireline contract one-off costs Enabling stronger alignment between EBITDA and cash generation, no cash impact (2/2)
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20 Special topics – To recap and…one more thing (1) Following approval by shareholders on 28 January 2026, pending completion of saving shares conversion process (2) To be executed following completion of saving shares conversion ‘98 Concession Fee New capital structure Accounting of wireline contracts one-off costs Reverse Stock Split TIM Ordinaries Higher financial flexibility ▪ Positive NFP impact expected in 2026 Leaner, more efficient and remuneration-supportive capital structure (1) ▪ Restored available reserves, enabling higher financial flexibility including for shareholders’ remuneration ▪ Removing saving shares preferential rights, aligning interests of all shareholders and improving stock liquidity and relevance in Indexes Better alignment between EBITDA and cash generation ▪ No cash impact ▪ Strong industrial rational #1 #2 #3 Reducing volatility and attracting a new class of investors ▪ Approved by TIM BoD on 24th February, to be proposed to AGM on 15th April (2)
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21 #4 2026 update Pietro Labriola, Group CEO Piergiorgio Peluso, Group CFO Alberto Griselli, TIM Brasil CEO Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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22 TIM Domestic TIM Brasil (1) Subject to approval by the Ministry of Enterprise and Made in Italy (MIMIT), by the Italian Competition Authority (AGCM) and by the Italian Communications Authority (AGCom) (2) Exact amount depending upon the subscription rates of the voluntary or mandatory conversions (3) Subject to Shareholders’ approval, following saving shares’ conversion (4) Annual exchange-rate published in Bloomberg Survey based on major banks projections (2026 avg. exchange rate @ 6.54 R$/€, Year-End exchange rate @ 6.66 R$/€) (5) The deal is subject to customary regulatory approvals, including Brazil's CADE and ANATEL ‘98 Concession Fee Positive impact on NFP in ‘26 FiberCop TSA/MSA – Value of services provided to FiberCop reducing in ‘26 Saving share conversion Up to € 0.7bn cash-out by end of May ‘26 (2) Poste synergies (ex MVNO) No material impact in ‘26 (see slide #26) NetCo earnout Not included Ordinary shareholders remuneration ~70% of ‘26 Eq. FCF AL net of ‘98 Concession Fee impact and dividends to TIM Brasil minorities (3) MVNO Poste Mobile migrating in ‘26 (run-rate in ‘27), Fastweb and CoopVoce terminating in H1 ‘26 Sparkle disposal Completion in Q2 ‘26, c. € ~0.7bn cash-in Extraordinary shareholders remuneration ~50% of Sparkle disposal proceeds through buy back to be launched after closing (3) RAN sharing with Fastweb+Vodafone (1) No material impact in ‘26 Forex P&L organic targets @ avg. 6.31 R$/€ Financial targets @ consensus FX (4) M&A 51% stake acquisition of I-Systems -€0.2 bn (5) Shareholder remuneration Dividend policy (see slide #27) Key assumptions in 2026 guidance
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23 TIM Group - 2026 high level priorities by entity Revenues TIM Brasil TIM Enterprise TIM Consumer Stable in retail Reduction in MVNO Improvement driven by cost reduction 5G and customer platform Above-market growth fueled by ICT Improve Make vs Buy, scale up insourcing and maximize cost efficiency AI, Data Centers and Digital Sovereignty Continued growth Above-inflation EBITDA growth 5G and IoT verticals, optimization of network expansion Margins CAPEX Environment Unveil Transition Plan Social Improve gender balance Governance Strengthen digital security ESG
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24 Key market trends and TIM positioning – From Cloud adoption to Cloud governance Cloud is no longer only about computing power, it is about control over data, operations and technology TIM well positioned to capture Sovereign Cloud opportunity building on an existing sovereign and infrastructure offering to drive growth in PA and regulated sectors Cloud Business drivers Customer need Architecture Control over data Scale & speed Control & resilience Cost efficiency Risk mitigation Global hyperscale Jurisdiction-aware Vendor concentration Multi-layer sovereignty Old model New model …to SovereigntyFrom Efficiency… Adoption solved scale Governance solves risk
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25 Key market trends and TIM positioning – From Gigabytes to guarantees When latency, symmetry and resilience matter, connectivity stops being a commodity Performance metrics now matter ▪ Low latency when needed ▪ Jitter control ▪ Uplink capacity ▪ Resilience & redundancy ▪ Edge proximity Value creation for TIM will be driven by the central role of ultra-high-performance networks, fueling accelerated service monetization and significant upside potential Connectivity Pricing logic Network Consumer services Enterprise services Price per GB Price for Quality Best effort Slicing/Uplink/Latency driven Social & HD streaming Cloud gaming, 4K live sport, Smart home security, AI assistants Basic connectivity Cloud migration, Cybersecurity, Industrial IoT Edge & AI workloads Old model New model …to ValueFrom Volume…
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26 Launched To be launchedTIM/Poste Italiane areas of synergies € ~50m EBITDA AL/year @ run-rate No material impact in 2026 Additional areas of synergies currently under evaluation and to be disclosed at CMD JV TIM Enterprise/Poste Strengthen Sovereign Cloud services Cost savings from joint procurement Software, hardware, advertising, general and shared services Poste insurance policies sold by TIM TIM Energia powered by Poste sold by TIM Available in 750+ TIM stores Opening of additional sales’ channels MVNO for PosteMobile Business Plan de-risking Migration started in Q1 2026 € ~100m Service revenues/year @ run-rate € ~50m EBITDA AL/year @ run-rate No material impact in 2026Partnership on Cloud services based on AI and Open Source technology Cost savings from joint procurement Software, hardware, advertising, general and shared services Poste insurance policies sold by TIM Poste consumer and SME insurance policies in TIM stores and on-line from Q1 TIM Energia powered by Poste sold by TIM Available in 750+ TIM stores Planned extension to c. 500 multi-brand stores MVNO for PosteMobile Business Plan de-risking Migration started in Q1 2026, completion expected in Q2 #1 #2 #3
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27 TIM Brasil - 2026 Guidance (1) Capex excludes 3rd license renewal and new auctions (2) Subject to the performance of the business and the resolution of the Board of Directors and the General Shareholders' Meeting All figures refer to TIM S.A. Normalized figures, YoY growth ~5% growth 6-8% growth R$ 4.4-4.6bn 11-14% growth R$ 5.3-5.5bn Short-term targets (2026) Drivers Real growth, with sustainable dynamics in mobile, recovery of fixed and the development of new sources of revenue Efficiency in Opex lines with discipline, digitalization and materialization of AI gains Efficient capital allocation, with a focus on differentiated quality and technological evolution Focus on the evolution of the revenue-to-cash conversion machine with a holistic approach to efficiency Expansion of shareholder returns at a fast pace and compatible with cash flow growth Service revenues EBITDA CAPEX (1) EBITDA AL minus CAPEX Shareholders remuneration (2)
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28 (1) Excluding non-recurring items, change in consolidation area and exchange rate fluctuations. Group P&L figures @ avg. exchange-rate 6.31 R$/€) (2) Annual exchange-rate published in Bloomberg Survey based on major banks projections (2026 avg. exchange rate @ 6.54 R$/€) (3) Adj. Net Debt AL/Organic EBITDA After Lease. Net Debt of TIM Brasil based on consensus exchange rate evolution (2026 EoP exchange rate @ 6.66 R$/€) (4) Exact amount depending upon the subscription rates of the voluntary or mandatory conversions (5) See detailed timeline in slide #17 Revenues o/w Domestic EBITDA AL o/w Domestic CAPEX on revenues o/w Domestic Eq. FCF After Lease Leverage 13.7 9.5 3.7 2.0 13.9% on rev. 12.4% on rev. 0.7 bn 1.86x Achievement FY ‘25 2-3% growth 1-2% growth 5-6% growth ~4% growth <14% on rev. ~12% on rev. ~1.8bn (2) Incl. ‘98 Concession Fee Guidance FY ‘26 Below committed max lev. of 1.7x (3) Shareholders’ remuneration ▪ Dividends: 70% of Eq. FCF AL net of ‘98 Concession Fee impact and dividends to TIM Brasil minorities Cash out in 2027 ▪ Buy back: ~50% of Sparkle disposal proceeds After closing ▪ Cash: up to € 0.7bn for saving shares conversion (4) By end of May (5) TIM Group - 2026 Guidance Organic P&L figures (1), €bn, YoY growth
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29 NFP AL YE 2025 EFCF AL 2026 '98 Con. Fee cash-in Sparkle cash-in Tim Bra dividends ITA buyback Sav. shares conversion Financial investments NFP AL YE 2026 (1) Adj. Net Debt AL / Organic EBITDA After Lease. (2) As communicated in “FY ‘24 Preliminary Results and Strategic Plan update” presentation on Feb. 13th, 2025 TIM Group - 2026 below committed maximum leverage Adjusted Net Debt After Lease evolution, € bn, excluding Poste synergies & earnout 1.86x Leverage (1) 50% of Sparkle cash-in Incl. 51% stake acquisition of I-Systems in Brazil Further financial flexibility to accelerate growth (organic & inorganic) 1.7x committed max. leverage (2)
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30 (1) Transition plan includes TIM Brand products with carbon footprint (2) 35% by ‘26 (3) 49.5% by ‘26 (4) IoT, Cloud & Security service revenues (5) PEC, SPID, Digital Signature -growth of active services, baseline ‘22 (6) New guidance TIM Group - ESG 2026 guidance Emissions Net Zero 2040 Gender equality ▪ Leadership position (% women) (2) ▪ Hiring (% women) (3) 35.5% by 2027 50% by 2027 ▪ Advanced digital solutions (4) ▪ Digital Identity services (5) ▪ Workforce upskill in digital capabilities +17% in 2025 +30% CAGR ‘23-‘25 ≥90% by 2027 ▪ 100% Green Energy (Scope 2), 2025 ▪ Carbon Neutral (Scope 1+2), 2030 ▪ New Transition plan (Scope 3), 2030 (1) Italy Brazil Group Targets 100% Green Energy 60% 33.5 % 52.8% +22% +34% Achievement 2025 2026 guidance ▪ Unveil Environmental Transition Plan by 2026 ▪ 100% renewable electricity purchased and Scope 3 tracking ▪ Increase share of women in leadership roles ▪ 50% of women hires ▪ Scale PA governance platform (6): 1) ≥30% new customers vs FY ‘25 activations 2) +20% YoY sovereign services commercialized ▪ ≥20 % of employees trained
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31 Closing remarks More supportive governance and leaner capital structurePresent 2026 guidance and growth trajectory confirmed Future short-term The best is yet to come… Capital Market Day in H2 with 2027-‘28 strategic plan update Future mid-term Four consecutive years of guidance achievedPast Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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32 Q&A Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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33 Annex Preliminary FY 2025 Results and 2026 Update - 25 February 2026
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34 (1) Group figures at average exchange-rate YTD 6.31 R$/€. Excluding non-recurring items and exchange rate fluctuations (2) ‘98 Concession Fee impact on Adjusted Net Financial Position expected in 2026 (3) Adjusted Net Debt After Lease / LTM Organic EBITDA After Lease EBITDA AL minus CAPEXRevenues EBITDA After Lease CAPEX Eq. FCF After Lease Net Debt After Lease (2) 0.3bn +75.9% 3.8bn +3.9% 1.0bn +10.0% 0.7bn 18.6% on revenues 0.8bn 6.9bn 1.86x leverage (3) ~0bn N.m. 2.7bn +3.7% 0.5bn +7.8% 0.5bn 18.2% on revenues 0.2bn +29.4% 1.1bn +4.4% 0.5bn +12.7% 0.2bn 19.5% on revenues Service +4.9% Service +4.9% Service +5.1% GroupDomesticBrazil Q4 ‘25 - Strong results both in Italy and Brazil… Organic P/L figures ex Sparkle, YoY comparison based on 2024 like-for-like, €bn and YoY trend (1)
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35 TIM Domestic Transformation Plan on track Domestic EBITDA AL minus CAPEX, savings vs inertial plan, €m 2025 savings Cumulative savings Legacy technologies decommissioning ICT vendor consolidation Calibration of service profile on legacy customers @ effective service needs Labour cost optimization Key drivers 70 275 266 FY '24 FY '25 achievement FY '25 target 130% of FY target achieved Transformation Plan mitigating inertial total cash costs increase
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36 Pre-retirements and DAZN payment No cash impact (739) (88)(973) 628 (313) Change in NWC Reported 1998 Concession fee Reversal of deferred costs Other extraord. items Change in NWC Ordinary 1,786 3,689 4,007 2,003 1,903 973 ( 628 ) ( 132 ) 105 ( 2,004 ) EBITDA AL - CAPEX Organic CAPEX ex.Sparkle EBITDA AL Organic Other non-recurring items Sparkle perimeter EBITDA AL Reported CAPEX incl.Sparkle EBITDA AL - CAPEX Reported FY ‘25 EBITDA AL - CAPEX reconciliation and NWC drill-down €m
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37 ▪ The revision assumes a reduction in useful life from 8 to 4 years, effective 31/12/2025 ▪ P/L 2025 is impacted by an ‘ordinary’ charge (still based on useful life of 8 years) and an ‘impulsive’ charge from reversal on 31/12 ▪ Starting 1/1/2026, one-off costs are accrued over a residual period of 4 years Accounting based on avg. customer life (8 years) Accounting based on pay-back of one-off contract costs (1) (4 years) Already booked to P/L Deferred in B/S To be booked to P/L Reversal to P/LAlready booked to P/L Deferred in B/S To be booked to P/L (1) Pay-back of one-off costs through the first margin (net ARPU – direct recurring costs) Accounting of wireline contract one-off costs – Simplified example Client 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 #1 Activated in 2021 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 #2 " in 2022 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 #3 " in 2023 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 #4 " in 2024 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 #5 " in 2025 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 #6 " in 2026 1/8 1/8 1/8 1/8 1/8 1/8 1/8 1/8 100% of cash impact in year of customer activation EoP 2025 4/8 5/8 6/8 7/8 3/8 Client 2021 2022 2023 2024 EoP 2025 2026 2027 2028 2029 2030 2031 2032 2033 #1 Activated in 2021 1/8 1/8 1/8 1/8 1/8 3/8 - #2 " in 2022 1/8 1/8 1/8 1/8 4/8 - #3 " in 2023 1/8 1/8 1/8 3/8 2/8 2/8 #4 " in 2024 1/8 1/8 2/8 4/8 2/8 2/8 #5 " in 2025 1/8 1/8 6/8 2/8 2/8 2/8 #6 " in 2026 1/4 1/4 1/4 1/4 2025 100% of cash impact in year of customer activation
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38 72% 28% Fixed Floating 1.1 1.3 1.5 0.9 0.8 3.1 62% 20% 17% 1% EUR USD BRL Other 75% 20% 5% Bonds Bank & EIB Other € 10.8 bn Gross Debt AL (1) by currency by interest rate € 3.8 bn Financial assets AL (1) by type 89% 11% Cash & cash equivalent Other 2026 ‘27 ‘28 ‘29 ‘30 Beyond Covered beyond 2030 Bonds Loans 5.7% 5.8% 5.6% 5.5% 5.5% 5.7% 5.8% 5.9% Q1 '24 Q2 Q3 Q4 Q1 '25 Q2 Q3 Q4 Debt maturities (2) Avg cost of debt YTD 11% Dec. 2024 (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: 6 years (bond 6.3 years) by type Capital structure
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39 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 FY ‘25 and Q4 ‘25 Preliminary Financial results are drafted 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 FY ‘25 and Q4 ‘25 Preliminary Financial results of the TIM Group are the same as those adopted in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 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 FY ‘25 and Q4 ‘25 Preliminary Financial results of the TIM Group are unaudited. Alternative Performance Measures The TIM Group, in addition to the conventional financial performance measures established by IFRS, uses certain alternative performance measures for the purposes of enabling a better understanding of the performance of operations and the financial position of the TIM Group. In particular, such alternative performance measures include: EBITDA, EBIT, Organic change and impact of 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. Unless otherwise specified, figures are expressed in millions of euros, rounded to the nearest million. Any discrepancies between totals and subtotals are solely attributable to rounding effects and do not affect the substance of the financial information presented. ▪ In the TIM Group FY 2025 preliminary 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 FY 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). In addition, the Organic Like-for-Like Information excludes non-recurring items ▪ Cash flows and Net Debt After Lease are based on actual results (including Sparkle and Netco results up to the effective date of the transaction) either for 2025 and for 2024
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40 Further questions please contact the IR team Investor_relations@telecomitalia.it GruppoTIM.it