Telecom Italia Group reported its 1Q09 results, focusing on cost control and cash flow generation. Revenues declined 3.8% organically due to challenges in the domestic market from channel restructuring and the economy. However, EBITDA was largely stable as cash costs fell 7.5%. Looking ahead, Telecom Italia will continue restructuring sales channels and controlling costs while implementing new offers to boost revenues in key segments.

1. GRUPPO TELECOM ITALIA
1Q 2009 Results
Milan, May 7th, 2009
Telecom Italia
1Q09 Results
FRANCO BERNABE’

2. TELECOM ITALIA GROUP
1Q 2009 Results
Safe Harbour
These presentations contain statements that constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this
presentation and include statements regarding the intent, belief or current expectations of the customer base,
estimates regarding future growth in the different business lines and the global business, market share, financial
results and other aspects of the activities and situation relating to the Company.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties,
and actual results may differ materially from those in the forward looking statements as a result of various factors.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of
the date of this presentation. Telecom Italia Spa undertakes no obligation to release publicly the results of any
revisions to these forward looking statements which may be made to reflect events and circumstances after the
date of this presentation, including, without limitation, changes in Telecom Italia Spa business or acquisition
strategy or to reflect the occurrence of unanticipated events. Analysts and investors are encouraged to consult the
Company's Annual Report on Form 20-F as well as periodic filings made on Form 6-K, which are on file with the
United States Securities and Exchange Commission.
FRANCO BERNABE’ 1

3. TELECOM ITALIA GROUP
1Q 2009 Results
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Back up
FRANCO BERNABE’ 2

4. TELECOM ITALIA GROUP
1Q 2009 Results
TI Group 1Q09 – Priorities and Actions
Focus on
Cash Cost Control Financial Discipline
Core Markets
Customer centric Cash Cost reduction program Diversified and Hedged
organization: a new fully on track: 25% of FY09 Debt (~70% Fixed rate; FX
management team at work program already achieved fully hedged)
Implementation of new sales Headcount reduction plan Strong Liquidity position
distribution channel going forward (76% already post dividend payments:
2Q09 offer portfolio completed) Euro 4.6 bln
reshaped to target specific
needs of customer segments Overall TI Group Cash Costs Euro 2.6 bln refinancing
reduced by 7.5% vs 1Q08 completed keeping cost of
Clear and strong commercial
roadmap in Brazil Group Cash Cost on debt around 6%
Intelig deal : complementary Revenues improved by 3p.p. Disposal process started
industrial and commercial Domestic Cash Cost reduced
assets by 6.9% vs 1Q08
Strong Focus on Profitability and Cash Flow Generation
FRANCO BERNABE’ 3

5. TELECOM ITALIA GROUP
1Q 2009 Results
Key Financial Achievements
Euro mln
KEY FINANCIAL ACHIEVEMENTS KEY POINTS
1Q’08 1Q’09
Domestic:
Wireline revenue trend continues to improve (-2% in
Organic 1Q09) based on BB and ICT
7,063 6,793
Revenues Mobile affected by sales channel reorganization,
lighter push on handsets sales, weaker economic
environment impacting corporate and SME spending
Brazil: transition quarter reflecting the restart phase.
Organic
EBITDA
2,905 2,835 On track to reach EBITDA target
Net Financial
Position 35,436 34,518 Confirming NFP/Ebitda target at ∼2.9x
Reduction of Capex in the Domestic business mainly
1,025 through lower commercial Capex and positive impact of
CAPEX 1,228
efficiency programs
Brazil: selective spending focused on 2G quality and 3G
deployment
Operating Free
968 850 OFCF/Revenues ∼13% benefiting from cash cost
Cash Flow reduction
FRANCO BERNABE’ 4

6. TELECOM ITALIA GROUP
1Q 2009 Results
TI Group – Organic results vs. 2008
Euro mln, %
Revenues
7,063 -270
-3.8% 6,793
EBITDA
41.7%
% on 41.1% +0.6 p.p.
Revenues
-70
-2.4%
2,905 2,835
1Q08 1Q09
Opex
-200
4,158 -4.8% 3,958
1Q08 1Q09
1Q08 1Q09
FRANCO BERNABE’ 5

7. TELECOM ITALIA GROUP
1Q 2009 Results
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Back up
FRANCO BERNABE’ 6

8. TELECOM ITALIA GROUP
1Q 2009 Results
Restructuring Sales Channels
Key Actions Main Results
New dealer Segmentation targeting to increase Upselling: 8 mln TIM clients no
upselling & cross selling TI clients and 15 mln TI clients
40%
Elite
Number of POS Business weight
no TIM clients
40% 80%
Platinum Cross-selling: 15 mln other TLC
Gold customers
Rationalisation of Dealer Networks 230 POS terminated in 1Q09
Handsets sold down 38%
New Handsets Strategy 3G/Internet Key/Laptop share up
to 63% (+13 p.p. vs 1Q08)
From acquisition to client value
Revenue share concept
SAC down by 12% vs 1Q08
Revision of the Compensation Scheme 2Q portfolio of integrated services
as catalyst
Focus on handset as service enabler
vs compensation driver
FRANCO BERNABE’ 7

9. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic – Steady Cost Control Offsetting Revenue Decline
Euro mln, Organic data, %
Revenues
Slowdown of domestic revenue performance as expected,
mainly due to the short term impact of sales channel restructuring
-250
5,607 -4.5% 5,357 and calendar effect.
Mobile performance (-7.1% YoY in 1Q09) reflects:
2,217 -158; -7.1%
Mobile 2,059 strong reduction of VAS content from the youth segment;
even stronger focus on high margin revenue stream
reflected into significantly lower handsets sales vs 1Q08.
Wireline 3,753 -76; -2% 3,677
Improving fixed revenue trend (-2.0% YoY in 1Q09) through the
positive impact of regulated price increase, steady broadband
1Q08 1Q09 growth boosted by Alice Casa and continuous uptake of ICT.
EBITDA
% on +0.1p.p. 47.5%
Revenues 47.4% Significant OPEX reduction (-134 mln euro YoY) through a
selective approach and rigorous cost control.
-116
2,658 -4.4% 2,542 EBITDA margin up for the second consecutive quarter confirms TI
as the industry benchmark for profitability.
Fully on track to deliver 2009 cash-cost reduction despite the
challenging economic scenario.
1Q08 1Q09
FRANCO BERNABE’ 8

10. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Fixed - TI Access Performance
‘000 access
Telecom Italia Retail Access Evolution TI Line Loss Evolution
+44
TI Line Loss Evolution
+43
OLO Access Growth (TI Wholesale)
ULL Naked WLR
+396
FRANCO BERNABE’ 9

11. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Fixed - Focus on BB
Broadband Portfolio
BB portfolio (‘000 access) Broadband ARPU
ARPU (€/month)
’000 access Euro/month
+0.4
+114 +89
6,427 6,541 6,754 6,843
Free
71% 73% 77% 79%
Flat (%)
IPTV Performance Naked - Alice Casa
‘000 access ‘000 access
+229 +115
+36
+111
+38
+44
% on BB % on BB
access 2.1% 2.7% 3.3% 4.9% 5.3% access 1.7% 3.5%
lines lines
FRANCO BERNABE’ 10

12. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Fixed - Focus on ICT
Euro mln
ICT Revenues Marketing offers: main strategic guidelines
+15.2%
Business segment
Strong leverage on “Impresa Semplice” brand to
define TI distinctive position in the SME segment
Launch of new packages of ICT services such as
certified e-mail, web collaboration
Extension the 3Play concept to the SME
segment bundling voice (F&M), broadband and
browsing in mobility
Focus on service revenues
Top / Large Account segment
+18.0% Commercial focus on “core” ICT services and
launch of new canvass of ICT 2.0 services
Regional events to promote TI portfolio of ICT
services
Launch of a Blackberry campaign targeted to 4
customer clusters to further increase e-mail use
in mobility
FRANCO BERNABE’ 11

13. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Mobile - Top Line Under Pressure
Revenues change YoY (%) Working days
Δ calendar -3
Consumption Revenues
discontinuity 63
60 represent ~85% of total
-2.3% Service Revenues
Δ calendar Δ incoming Δ VAS Δ handsets Δ outgoing 1Q 08 1Q 09
discontinuity
€cent/minute Mln minutes -1 pp net of
Flat calendar
-10.8% -3.4% discontinuity
9.9 8.9 3,512
Δ incoming 3,394
-1.8%
1Q 08 1Q 09 1Q 08 1Q 09
Euro mln messaging content browsing
-8%
261 239 +18%
-4.8 Δ VAS 124
-39%
157
133
-1.5% 76
Euro mln
-158 -51 -40 -33 -34 -- 1Q 08 1Q 09 1Q 08 1Q 09 1Q 08 1Q 09
Sales/unit € 113 121
885 -341 544
Δ handsets 2G 47% 34%
-1.5%
3G+ Laptops
& 53% 66%
Internet keys
1Q 08 1Q 09
FRANCO BERNABE’ 12

14. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Mobile - Focus On Customer Segment
% on service Prices Volume
revenues % CB ARPU*
Trend YoY Trend YoY
Strict cost control to eliminate non core
ENTERPRISE
business services (i.e. VAS content and
10% 8% 1.3X WAP)
Exploitation of price flexibility to defend
indisputable leadership in the segment in
the current economic scenario
BUSINESS
Launch of integrated offers to secure
17% 8% 1.9X market share and total customer value (i.e.
“Impresa Semplice” bundling Mobile +
Fixed)
Short term impact of sales channel
CONSUMER
restructuring:
launch of new offers aimed at reinvesting
73% 84% 0.8X
repricing “goodwill” to increase customer
loyalty and regain the Young segment
postponed to 2Q09
*TIM average = 1X
FRANCO BERNABE’ 13

15. TELECOM ITALIA GROUP
1Q 2009 Results
2Q09 Consumer Offer Roadmap
Mobile Wireline
Acquisitions Acquisitions
TIM Premia Alice Casa INTERNET
Push on customer win back through a new offer with clear and
Further enrichment of Alice Casa with the new offer
long-lasting loyalty mechanism
TIM Tribù 2.0 “Casa Internet”: the new ADSL offer of Telecom Italia
New TIM Tribù to win-back youth segment, boost on net traffic, without monthly fee for web-browsing without limits at
opening to MSN and Facebook communities with tailor-made
home
solutions
Tutto Compreso in TI bill Touch screen fixed PC in TIM/Alice POS on TI bill
Potential market growth thanks to bank account domiciliation
for “Lock in” offers
homeTV
TV
MNP
New MNP handset discount based on voice traffic Prom
o
Prom
o Prom
o
Prom
o
Continous push on valued MNP ADSL ALICE All Alice Casa Alice Casa
MINI inclusive
7 Mb INTERNET Voice &
Mobile Internet COMN
ING
20 Mb
Internet
SOO 7 Mb
Sustain mobile broadband penetration 7 Mb
Voice voice 20 Mb
Traffic
Seasonal “Carte Servizi”
Push on voice and sms volumes during holidays with add-on With fee Without fee
roaming offer for high end customers (“travellers”)
Loyalty Loyalty
New customer segmentation based on value Reduce Line losses trend
Pre-retention approach Maximize pre-retention approach using predictive
models
FRANCO BERNABE’ 14

16. TELECOM ITALIA GROUP
1Q 2009 Results
2Q09 Business Offer Roadmap
Small / Medium Enterprises Top clients / LA
Further enriching Impresa Semplice portfolio Data services
Negozio & ufficio Customer network update and value
services offer: fully managed, full IP, ICT
“All inclusive” concept bundling Telecom Italia lines, unlimited F-F and
(i.e. videoconferencing on IP, data
Broadband without monthly fee and activation fee
backup for both fixed and mobile)
Mobile call feature available at additional charge Ufficio
Negozio Technology upgrade
Alice Business Tutto IP: one system
Mobilità managed by TI, one LAN infrastructure,
Unique offer available for the professional segment bundling voice, email one service centre
and browsing in mobility with clear cost and customizable packages…a true
office in full mobility Upselling Data Center Services
Mobilità The co-location offer allows customers
Technical assistance and dedicated caring for Gold and
Platinum packages to outsource the company data center,
entrusting TI with facility management
and operations management activities
Enterprises
Very attractive packages combining the highest levels of service and PBX
technology and full control over spending Substitution of the old PBX with a new
Workstations are available from a competitive entry point, leased one through co-marketing with 8
inclusive of domestic phone calls and unlimited Internet, security Vendors in partnership with Alice
functions, VoIP telephone and switchboard functions, and LAN Corporate IPPBX
configuration and management Advanced Voice ALL caring services with
toll free number in the profiles
FRANCO BERNABE’ 15

17. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic – Working On Efficiency
Euro mln, Organic data, %, units
3,919 3,650 -269 -6.9%
Capex -135 -13.9%
Strong Cash Cost-Cutting Program Opex -134 -4.5%
1Q08 1Q09
-1.8p.p.
69.9%
68.1%
Reducing Cash Cost on Revenues
1Q08 1Q09
0.4 0.9
Target FY
0.5
Efficiency on Track vs. FY Target
opex capex total
% 1Q09 on 23% 29% 25%
FY Target
Headcount (’000)
64.1
60.4
Moving towards a Lean Organization - 3.7
Jan 1, 08 April 30, 09
FRANCO BERNABE’ 16

18. TELECOM ITALIA GROUP
1Q 2009 Results
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Back up
FRANCO BERNABE’ 17

19. TELECOM ITALIA GROUP
1Q 2009 Results
TIM Brasil – Organic Main Results
Euro mln, %
Revenues EBITDA
+7
1,054 +0.7% 1,061 +44
+20.7%
1Q08 1Q09 1Q08 1Q09
EBITDA Margin CAPEX
+3.9 p.p.
-35
-25.2%
1Q08 1Q09 1Q08 1Q09
FRANCO BERNABE’ 18

20. TELECOM ITALIA GROUP
1Q 2009 Results
TIM Brasil – Revenues & OPEX Review
Top Line Performance Reflecting a Transitional Quarter
Lights… …& shadows
R$ Million
VAS revenues (+28.6% YoY)
ΔYoY
Steady innovative VAS growth (~80% Revenue growth at lower pace YoY due to…
3,183 3,205 +0.7% of total VAS) with TIM Web and TIM Fixo Postpaid mix decline of -3.7 p.p.
outperforming expectations in the mass
market Reduction in pre-paid MOU
Handsets portfolio Less incoming revenues -4%
3,007 2,993 -0.4%
~1 mln handsets sold in recent
dealer convention with massive mix
176 211
+19.9% improvement towards high end devices
1Q08 1Q09
Price repositioning completed: gained
flexibility for next quarters
Net Service Revenues
Net Product Revenues
Rigorous Financial Discipline On “Non Growth” Related Investments
Efficiency in Discretionary Costs*… …optimizing interconnection & Network Costs… …Bad debt under control…
R$ Million R$ Million R$ Million Normalized
272
∆ YoY ∆ YoY ∆ YoY
95*
-10% -4% -24%
306 ∆ QoQ 1,029 991 ∆ QoQ
274 ∆ QoQ
177 134
-11% -6% +3%
1Q08 1Q09 1Q08 1Q09 % of Net 1Q08 1Q09
% of Net % of Net Service
9.6% 8.6% 32.3% 30.9% 5.9% 4.5%
Revenues Revenues Revenues
*G&A, Personnel * Telesales additional impact
FRANCO BERNABE’ 19

21. TELECOM ITALIA GROUP
1Q 2009 Results
TIM Brasil – Focus On Commercial Effort And Data for March
Clear and Strong Commercial Roadmap...
Recognisability
New Portfolio Communication
Brand Revamping
Getting Closer to our Customers Infinity Pre
Da Vinci
Brand manifesto Portability
TIM DNA recovery: coverage,
innovation, aspirational strengthening Blue Man: associated
Communication (SoV)
positioning with technology and
intensity increase Mother’s Day
innovation
Being close to our customers
“Internet” Month
“Fixed” Month
FEB MARCH APRIL MAY JUNE
...Starting to Paying Off
Subscriber Growth Top of Mind Advertising Effectiveness
Lines (000’s) Cities of São Paulo and Rio de Janeiro, % % of good and excellent valuation
The highest
since Jan/2008 33 Better valuation vs. competitors
Net Share % 2008 average: 30
30 and association with ideas of
10.5 N.M. 29.0 17.4% 3030%
change, revolution, innovation
29
379 88%
138 22
0,09
77%
~1Mn lines
20%
0,08
69%
19 18
0,07
(823) cleanup, largely 0,06
in pre-paid 0,05
(~0.7 Mn) 10%
0,04
Jan/09 Feb/09 Mar/09 Sem 16/03 Sem 30/03
0,03
TIM Claro Oi
TIM VIVO CLARO OI
FRANCO BERNABE’ 20

22. TELECOM ITALIA GROUP
1Q 2009 Results
TIM Brasil – Action plan for 2009
Back to Growth
Trend Reversal:
Efficiency Plan Intelig
Back to Growth
Inverting customer growth trend Reinvesting important efficiencies Network and trasport efficiencies
March: 29% marginal market share Bad debt Human Resources Leverage on Intelig Backbone (14,500 km fiber
Optimization of collection Leaner organization
optic cable) and MAN (800 km in 18 cities)
& dunning processes Make vs. Buy
450
400
350
Gross Upselling and crosselling Intelig and Tim Brasil
~1 MM
300
- ~300k
250
Network & IT G&A customers
200
150
Churn Rationalization& Deep revision of New offers for long distance services to TIM
renegotiation of network G&A policy
100
50
Brasil clients
0
OPEX (leased lines) and IT
1Q 2009 Apr-Dec 2009
...to finance growth ..& improving positioning on LD & Top Clients
Total commercial spending Business clients (‘000 CNPJ)
SAC ~300
up ~100
+16% 6
5
up
Acquisition 4
LD revenues (R$ Bln)
flat
3
Management 2
1
1 +
2008 2009 2008 FY 2009 FY
0
New Offering, Focus on Value Strong EBITDA and OFCF Protection TIM & Intelig Complementary Assets
FRANCO BERNABE’ 21

23. TELECOM ITALIA GROUP
1Q 2009 Results
Agenda
TI Group Main Achievements
Focus on Domestic Business
Focus on TIM Brasil
Back up
FRANCO BERNABE’ 22

24. TELECOM ITALIA GROUP
1Q 2009 Results
Domestic Mobile - ARPU Stabilization
ARPU (€
TIM Customer Base (SIM, mln) ARPU (€/month/line)
2008 2009 normalized
Focus on Outgoing
8.8 8.6 9.0 8.9 8.7 Volume (bln min)
12.1
Price (€ cent)
12.6 12.7
12.0 12.0
1Q 2Q 3Q 4Q
+27 -2 +16 +5 +1 Δ % YoY Volume
-18 +1 -17 -6 -0.6 Δ % YoY Price
FRANCO BERNABE’ 23