FY’17 and 2018-’20 Plan - telecomitalia.com

1 TIM Group This presentation contains statements that Such forward looking statements are not constitute forward looking statements regarding guarantees of future performance and involve the intent, belief or current expectations of future risks and uncertainties, and actual results may growth in the different business lines and the global differ materially from those projected or implied business, financial results and other aspects of the in the forward looking statements as a result of activities and situation relating to the TIM Group. various factors. The financial results of the TIM Group are prepared As a result of this, the Industrial Plan doesn't take in accordance with the International Financial into account the following IFRS: IFRS 15 Revenue Reporting Standards issued by IASB and endorsed from Contracts with Customers, IFRS 9 Financial by the EU (IFRS).

2 The accounting policies and Instruments and IFRS 16 Leases. consolidation principles adopted in the preparation of the financial results for the FY17 and the 18-20 The financial results for the FY17 have not yet been Industrial Plan have been applied on a basis verified by the independent auditors. consistent with those adopted in the 2016 Segment information is consistent with the prior Consolidated Financial Statements. periods under comparison. FY'17 and 2018-'20 Plan Milan, March 7 2018 1. FY'17 and 2018-'20 Plan What CEO asked and what we did 4Q'17 and FY. Main Results 2018-'20 Plan: Key Drivers and KPI Evolutio n Targets and Take-Aways Appendix FY'17 and 2018-'20 Plan Milan, March 7 2018 2.

3 Organic data(1), figures in mln, % YoY. Service Revenues EBITDA Service Revenues EBITDA. 17,915 + 18,263. 8,291 + 8,673. Group 4,516 4,666. + 2,149 2,238. + FY'16 FY'17 FY'16 FY'17 4Q'16 4Q'17 4Q'16 4Q'17. Domestic 13,871 + 14,000. 6,878 + 7,053. Targets 3,524 3,607. + 1,744 1,777. Delivered(2) + FY'16 FY'17 FY'16 FY'17 4Q'16 4Q'17 4Q'16 4Q'17. Brazil 4,082 4,291 Targets + Delivered(3) 1,434. + 1,635 1,004 + 1,065 409 + 465. FY'16 FY'17 FY'16 FY'17 4Q'16 4Q'17 4Q'16 4Q'17. Net Debt (4) Down by 920mln QoQ. 679mln 4Q'17 Provision includes 4,000 personnel exits (1) Including exchange rate impact and non recurring items (3) Targets: Service Revenues & EBITDA positive in all quarters FY'17 and 2018-'20 Plan (2) Targets: Service Revenues stability & EBITDA YoY low single digit growth (4) Adjusted Milan, March 7 2018 3.

4 Mln, %YoY, Organic Performance(1). TIM Group Domestic Brazil Sparkle Group Inwit (+ ). Mobile Total Revs.(2) + ~1%. & others Mobile + 19,828 + Nat. WHS ~11%. ~9% + 33%. FY'17. o/w Domestic 15,354 + 95%. 5% Fixed o/w Brasil + Business ~30%. 4,502 + 67% Fixed + Consumer ~50% + + Total Revs.(2). 5,149 + Inwit Nat. + 4Q'17. o/w Domestic Fixed WHS Sparkle Fixed 4,042 + + Mobile* CO BU + + Mobile + + + + o/w Brasil 1,113 + FY'17 Retail Top Line both Fixed and National Wholesale FY'17 YoY Mobile Revenues supported by continued Mobile shows low-single digit growth YoY underperformance is driven by comparison increase in postpaid customer base effect with 3Q16 long-term fixed *4Q'17 Domestic Mobile Total Revenues infrastructure leases Consistent evolution of Fixed customer base slightly down due to product re-phasing, due to the growth of TIM Live Service Revenues positive YoY Positive performance for all segments in 4Q'17.

5 (1) Excluding exchange rate impact and non recurring items FY'17 and 2018-'20 Plan (2) Net of Eliminations Milan, March 7 2018 4. Revenues & ARPU Customer Base Organic data, mln, % YoY, ARPU /month K, Rounded numbers, % YoY, 4Q'17 %QoQ. 4Q'17 Net Adds/Losses 5,275 + TOT. CB 29,617 + 30,755 +470, + 620. TOT. ACTIVE 25,651 + 26,992 +405, + Total NOT HUMAN(2) + +517, + 4,655 + 199. Product HUMAN flat -112, Services 1,225 + o/w Voice & Mess. 6,674. Only 7,757 -1,084. 4Q'17 FY'17. o/w BB Users 11,804 +1,091 12,895. Continued YoY Service Revenues growth sustained by robust 76% of MB CB. 7,613 +2,132 9,745 +348 QoQ. increase in data usage and innovative services 4G Users FY'16 FY'17.

6 ARPU Human(1). Total CB growth (+1,137k YoY) driven by M2M, Large Screen and reduction 2017. of inactive customers 2016 BroadBand CB reaches 12,895k users (+1,091k YoY). 16. Active customer penetration increase: 1,342 k more calling lines, 1Q'17 2Q'17 3Q'17 4Q'17 LTE users scaling up sharply (1) ARPU Consumer on Human lines. Reported ARPU in annex FY'17 and 2018-'20 Plan (2) Includes M2M and Business Segment Large Screens (for Inventory & Fleet Management etc.) Milan, March 7 2018 5. Revenues & ARPU Fixed Accesses & Customer Base Organic data, mln, % YoY, ARPU /month k, % YoY, 4Q'17 %QoQ. 4Q'17 Net Adds/Losses Total Fixed 10,689 + Accesses(1) 11,285 11,044 -93, Total Revenues up 737 by 194 mln YoY.

7 +451 7,641 +82, + UBB+BB CB 7,191. Stable Service UBB: 997 +1,172 2,170 +400, + 9,952 Revenues, with Record Growth Total 2,763 + growing ARPU and Product 239 UBB lines balancing BB 6,194 -723 -318, 5,471. Service 2,524 + traditional 4Q'17 FY'17 FY'16 FY'17. Fixed ARPU Consumer BroadBand ARPU(2). 2017 2017. 2016 2016. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q. TIM Vision customers(3), +63% ~20% of Consumer BB CB is single-bill F/M Convergent, 22% of Consumer BB CB, + another ~28% has also a TIM Mobile Line while paying 2 bills (1) VoIP not included. FY'17 Line Performance including VoIP was -111k FY'17 and 2018-'20 Plan (2) M2M ARPU is ~ /month in FY'17 Milan, March 7 2018 6.

8 (3) Including mobile TIM Vision customers are % Total Fiber Coverage FTTx Penetration(2). % FTTC(1) 111 k cabinets passed % FTTH ~77%. ~73% 281 k FTTH OTB installed ~70% . ~60% ~65% 29%. ~74% mln HH passed FTTC. Fixed ~66% ~70%. ~56% ~60% in ~ 3,600 cities 14%. speed up to 200 Mbit/s ~6% ~7% ~10% mln HH connected FTTH. ~4% ~5%. in 30 main cities FY'16 FY'17. speed up to 1 Gbit/s FY'16 1Q'17 2Q'17 3Q'17 to-date % LTE Coverage 4G Penetration(3). >98%. ~98% 76%. LTE nodes ~97% >97%. Mobile ~7,300 cities covered in 4G 64%. >96% ~1,400 cities 4 Gplus speed up to 300 Mbit/s 12 cities FY'16 FY'17. speed up to 700 Mbit/s FY'16 1Q'17 2Q'17 3Q'17 to-date (1) Passed FY'17 and 2018-'20 Plan (2) FTTx Retail on Total Fixed BroadBand lines Milan, March 7 2018 7.

9 (3) LTE on Total Mobile BroadBand lines R$mln, Organic Performance, ARPU in R$, Rounded numbers Delivering Growth Record Ebitda Margin Service EBITDA. 15,474 + Full year EBITDA 5,894 + Revenues Margin at 4,075 + 1,758 + ROBUST. 4Q'17 FY'17 4Q'17 FY'17. IMPROVEMENT. IN REVENUE. QUALITY. Mobile ARPU + Fixed BB ARPU + Mobile postpaid Net Adds (k lines) Fixed UBB Net Adds (k lines). YoY YoY. 1,028. 935 +140% 16. 445 509 7. 1Q17 2Q17 3Q17 4Q17 1Q17 2Q17 3Q17 4Q17 1Q'17 2Q'17 3Q'17 4Q'17 4Q16 4Q17. FY17 ARPU + YoY FY17 BB ARPU + YoY Seventh consecutive quarterly growth FY17 Ultra BB Net Adds 86k lines FY'17 and 2018-'20 Plan Milan, March 7 2018 8.

10 2017 Domestic OPEX. Organic data, mln Total OPEX 8,121 + YoY 8,301. 4Q'17 Volume Driven Volume Interconnection (40%). Volume Driven 3,356 Driven Devices & Other COGs (55%). + YoY 3,779. (COGs) Content e VAS (5%). 1,128. + OPEX Net of Volume Driven 4,765 Market Driven YoY 4,522 Acquisition (22%). Market Driven 1,018 + YoY Advertising (14%). 1,132. Customer Management (37%). Process Driven & Other 1,133 YoY 821 EFFICIENCY Commercial Net Expenses (27%). AREA. Process Driven Labour Costs 2,615 YoY 2,569. Rental & Power (43%). G&A incl. IT (34%). Network Operations (23%). FY'16 FY'17. Remixing cost allocation: Net of Volume Driven, OPEX down 243mln.