TIM Group reported its 2Q'18 results on July 25th, 2018. Key highlights included:
- Positive 0.8% year-over-year growth in group service revenues.
- Solid 51.3% year-over-year growth in group operating free cash flow.
- Resilient domestic service revenues despite regulatory impacts.
- Continued strong performance in Brazil with impressive revenue and EBITDA growth.
- Group net debt was reduced by €396 million versus 1Q'18.
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In this 68 page in-depth report we analyze the market demand share for global SVOD platforms, digital original series popularity and genre demand share trends in 10 global markets.
I risultati di TIM per il primo trimestre 2020, illustrati in webcast e conference call il 19 maggio 2020.
TIM 2020 First Quarter Results, presented on May 19, 2020, via webcast and conference call.
In this 68 page in-depth report we analyze the market demand share for global SVOD platforms, digital original series popularity and genre demand share trends in 10 global markets.
Il 9 novembre 2023 il management di TIM ha presentato in conference call i risultati del Q3 2023 approvati dal Consiglio di Amministrazione.
On November 9, 2023, TIM management has presented in conference call its Q3 2023 results approved by the Board of Directors.
Solvay 9 months 2018 results - PresentationSolvay Group
Solvay published on November 8, 2018 its first nine months 2018 results. Earnings toolkit and press release are available here: https://www.solvay.com/en/event/nine-months-2018-earnings
TIM GROUP FY '23 Preliminary Results.pdfGruppo TIM
On February 15, 2024, TIM management has presented in conference call its FY 2023 preliminary results approved by the Board of Directors.
Il 15 febbraio 2024 il management di TIM ha presentato in conference call i risultati preliminari del FY 2023 approvati dal Consiglio di Amministrazione.
I risultati di TIM per il primo trimestre 2022, illustrati in webcast e conference call il 5 maggio 2022.
TIM 2022 First Quarter Results, presented on May 5, 2022, via webcast and conference call.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
2. 1
2Q’18 Results
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.
Safe Harbour
The financial and operating data have been extracted or derived,
with the exception of some data, from the TIM Group Half-year
Condensed Consolidated Financial Statements at 30 June 2018
which have been prepared in accordance with the International
Financial Reporting Standards issued by IASB and endorsed by
the EU (IFRS). The limited review on such interim consolidated
financial statements by the external auditors (PwC) has not been
completed.
The first half results include the effects arising from the adoption, starting
from 1 January 2018, of the new standards IFRS 9 Financial Instruments
and IFRS 15 Revenue from Contracts with Customers. To enable the year-
on-year comparison of the economic and financial performance for the
2Q2018 and first half of 2018, this presentation shows “comparable”
statement of financial position figures and “comparable” income
statement figures, prepared in accordance with the previous accounting
standards applied (IAS 39, IAS 18, IAS 11, and relative Interpretation).
4. 3
2Q’18 Results
Group
Organic data(1), €mln
2Q’18 Main Results: Positive Group Revenues Performance, Solid CF Generation
Domestic
SERVICE
REVENUES
EBITDA
-1.6%
597 903
OpFCF
Brazil
+0.8%
+51.3%
3,493 3,480
2Q'17 2Q'18
-0.4%
+5.7%
-4.4%
+12.7%
775 953
132 122+23.0% -6.0%
Record Group OpFCF growth:
+51% YoY
Net Debt reduction
of € 396 mln vs. 1Q’18Net Debt: 25,141
(2)
Positive Group Service
revenues and double digit
EBITDA-CAPEX growth.
Resilient Domestic Service
Revenues despite:
▪ end of 28-day repricing cycle
on fixed (started in April 2017)
▪ direct and indirect (4) effect
from 28-day billing roll-back
both on fixed and mobile
Net of Operational delays,
Regulatory impacts and non-
linear items comparison (5),
Stable Organic Domestic Ebitda
YoY
Continued strong performance
in Brazil, with impressive
growth in Service Revenues and
Ebitda
(1) Excluding exchange rate impact and non-recurring + one-off items
(2) These 2Q’17 Organic Ebitda representations exclude as a one-off item 39 €
million of liability reversals. Before this change, Group Organic Ebitda stands at
2,124 mln €, and its YoY performance at -3.4%; Domestic Organic Ebitda stands
at 1,809 mln €, and its YoY performance at -6.4%
(3) Ebitda-Capex including one-offs would have been: € 940 mln in 2Q’17 (+13.8%
YoY) for the Group, € 814 mln in 2Q’17 (17.1% YoY) for Domestic
(4) Mainly churn due to 30-day free opt-out window after re-pricing
(5) Organic Domestic Ebitda YoY normalized comparison: -80 mln € abs.delta YoY,
o/w -19 mln € Solidarity, -12 mln € 2017 Bitstream prices , -13 mln € Roam like
at home, -8 mln € 28-day billing roll-back direct effect, -28 mln € Vendor
Rebates
(2)
EBITDA-CAPEX
+18.8%
Highlights
901 1,070
1,770 1,693
872 921
2Q'17 2Q'18
321 362
2,085 2,051
(3) (3)
4,359 4,392
2Q'17 2Q'18
5. 4
2Q’18 Results
Organic data(1), €mln, % YoY
2Q’18 TIM Group Service Revenues Breakdown
~48%
~29%
~12%
~9%
~3%
69%
31%
By Technology By Business Segment
5%
95%
Fixed
+5.3%
Mobile
+5.7 %
Domestic Brazil
Consumer
-1.9%
Business
+2.2%
Nat. WHS
+2.1%
Inwit/others
+7.4%
By Technology
▪ Mobile: upselling strategy
continues. ARPU and
postpaid customer base up
▪ Fixed: TIM Live posts solid,
continued, revenue growth
(1) Excluding exchange rate impact and non-recurring items
(2) Net of eliminations
Group
Total Serv. Revs.(2)
4,392 +0.8%
Domestic
3,480 -0.4%
Brazil
921 +5.7%
Highlights
Sparkle
-1.8%
▪ Mobile: Total service revenues
slightly below parity due to
lower Wholesale and Inwit
third party contribution. Retail
service revenues are positive
YoY.
▪ Fixed: Total service revenues
impacted by International
Wholesale. Positive
retail service revenues,
supported by growing ARPU
▪ Business: Continued robust revenue
growth, steady customer base
▪ Consumer: impacted by direct and
indirect effects of 28-day billing,
both on fixed and on mobile
▪ National Wholesale: more fiber
and growth of non regulated
components
▪ Sparkle: further impacted by YoY
drag on IP contracts
▪ Inwit: continued strong organic
growth
Fixed -0.9%
(Retail +0.3%)
Mobile -0.2%
(Retail +0.5%)
-3%
Other &
Eliminations
6. 5
2Q’18 Results
1Q'18 2Q'18
10,099 10,424
BB Users
Voice & Mess. Only
HUMAN 19,621
+3.2%
+2.1%
-2.7%
19,525
13,32413,053
6,2976,472
Domestic Mobile: Growth in Lines and Value
k, Rounded numbers
(1) Retail excludes WHS, Inwit third-party contribution and Other
(2) ARPU Human: service revenues net of visitors (2Q’17 € mln 1,110, 2Q’18 € mln 1,109) on human lines (2Q’17 23,479k, 2Q’18 23,132k)
(3) Includes M2M and Business–Segment Large Screens (for Inventory & Fleet Management etc.)
Organic data, €mln, ARPU €/month
NOT HUMAN(3)
ACTIVE CB
TOTAL CB 31,629+1.9%
Revenues & ARPU Customer Base
+8.4%
+0.5%
28,117+2.7%
31,036
27,366
8,4967,841
1,145 1,142
156 180
2Q'17 2Q'18
1,062 1,068
-0.2%
1,301
Service
Mobile Revenues
Product
+1.6% 1,322
+15.1%
o/w Retail(1) +0.5%
15.8 16.0
2Q'17 2Q'18
ARPU Human(2)
+0.8% 32
-155 -352
MNP 2Q’18 – TIM best in class among MNOs
k, Rounded numbers
4G Users
78% of
Mobile BB
Kena second brand strategy paying off
Operator 1 Operator 2
+0.8% QoQ
7. 6
2Q’18 Results
33.8 33.9
24.9 26.1
2Q'17 2Q'18
ARPU
2,508 2,485
192 150
2Q'17 2Q'18
1,681 1,686
Service
2,700Total
Product
-0.9%
-2.4% 2,635
o/w Retail +0.3%
Domestic Fixed: Premium Positioning, Resilient Performance, UBB Growth
(1) TIM Vision fixed customers were 1.6 mln in 2Q’18 vs. 1.4 mln in 1Q’18
(2) Internal estimate of total BB accesses enabled by TIM, excluding Full Infrastructured, Wi Max & Other non-TIM, net of market reconciliation.
(3) Active, VoIP included
19,350 19,281
1Q'18 2Q'18
3,803 4,393
Total Accesses
BB Accesses(2)
+590
-69
o/w UBB
15,006 15,052+46
Retail(3)
Wholesale
Total Accesses
Retail(3)
Wholesale
o/w UBB
11,203
8,078
2Q’18
1,617
2,776
11,284
8,065
1Q’18
1,319
2,484
delta
-82
+12
298
292
-21.9%
+0.5%
+4.8%
Consumer
BroadBand
k, Rounded numbers, ∆ QoQOrganic data, €mln, ARPU €/month
Revenues & ARPU Fixed Accesses
Retail(3)
Wholesale
BB Accesses
3,052
7,547
2,810
7,527
242
19
TIM Vision: +204k fixed
customers, 14% QoQ CB
growth (1)
+3.4% QoQ
+2.4% QoQ
8. 7
2Q’18 Results
TIM Brasil: Continued Solid Performance
Organic Performance, R$mln, Rounded numbers
3.6 3.8 4.0
2Q'16 2Q'17 2Q'18
Net Service Revenues
Capex
1.02 Bln
+25.8%
YoY
EBITDA
Margin
37.2 %
(+2.3 p.p YoY)
EBITDA
R$ 1.6 Bln
+12.7%
YoY
Mobile
ARPU
R$ 21.9
+13.0%
YoY
12M Postpaid
Net Adds
+3.2 Mln
(CB: 19.1 Mln)
TIM Live
Arpu
R$ 72.1
+12.7%
YoY
+5.0% +5.7%
12M Fixed
UBB Net
Adds
+75k
(CB: 423k)
700 Mhz
cities
1,131
+215
vs 4Q’17
FTTH1 HH
+519 (000)
vs 4Q’17
(1) Addressable households ready to sell
Highlights
MSR
R$ 3.8 Bln
+5.7 %
YoY
TIM Live Revs.
R$ 0.09 Bln
+41.0 %
YoY
Total Net Revs.
R$ 4.2 Bln +5.8%
YoY
EBITDA – Capex
R$ 0.5 Bln
-6.0% YoY
(1H18 +17.3 YoY)
▪ Strong growth in a weaker
macro
▪ Double digit mobile and
fixed UBB ARPU growth
▪ CAPEX phasing leaves FY
outlook unchanged
▪ 2018 efficiency target
achieved, supporting
EBITDA margin expansion
▪ Strong operational and
network metrics
confirmed
10. 9
2Q’18 Results
Domestic Ebitda Affected by Operational Delays, Regulatory Impacts, Non-linear
items and One-offs
Operational Delays
▪ Solidarity labour agreement delay -19.5 mln €
Regulatory Impacts
▪ WHL Bitstream ‘17 Retroactive Prices -12.3 mln €
▪ Roam-like-at-home -12.7 mln €
▪ 28-day billing roll-back direct effect (1) -7.6 mln €
Non-linear items
▪ Vendor Rebates -27.7 mln €
One-Offs
▪ Liability Reversals (2) -38.6 mln €
Δ EBITDA YOY = -118.4 mln €
(1) € 8 mln Direct Impact of 28 Days billing roll-back (+7.8% on Fixed and +8.2% on
Mobile vs +8.6% 2017 Price Effect)
(2) Now excluded from 2Q’17 Organic Domestic Ebitda
(3) Adjusted for WHL Bitstream ‘17 Retroactive Prices, Vendor Rebates and Liability
Reversals. The latter relate to the rebasing of past liabilities performed in 2017
(4) Adjusted for Solidarity, Roam-like-at-home, 28-day billing roll-back direct effect
(3) (4)
1,7331,730
2Q’18
Normalized Domestic Ebitda YoY
flat
New Solidarity Agreement was implemented from
June ’18, 19th
Specific on 2Q’18 only
Comparison cycle ended in June ‘18
Ongoing effect
YoY delta normalizing after peak
In 3Q’18 and 4Q’18 there will be similar impacts to
2Q’18. Effects will terminate YE’18
2H’18
2Q'17 2Q'18
11. 10
2Q’18 Results
Domestic OPEX: Positive Addressable Base Performance affected negatively by
Other elements
Organic data, €mln
▪ Rigorous Cost discipline driving positive
performance on addressable baseline
▪ Sales-related Costs increased YoY
supporting Commercial performance
▪ Industrial: efficiencies achieved in Real
Estate (office space reduction) triggered
also Energy savings. Wholesale delivery
standards improved, offering better
assurance
▪ Zero-base budget on G&A and IT
▪ Labour cost savings more than
compensated delay in Solidarity
Agreement
▪ Increase in Other due to Credit Costs, Bad
Debt, Vendor Rebate Contributions (4) and
Interconnection
(1) Associated to sales of receivables
(2) Capitalized costs are essentially those associated with delivery and activation of fixed lines, with directly related IT and Network costs, which are smoothed on an average 5-yr basis
(3) 2Q’17 Organic Domestic Opex is changed to €2,070 mln (€2,031 mln plus €38.6 mln of liability reversals)
(4) Accounted under «Capitalized cost & other»
2Q17 2Q18
Addressable Cost Base 1,816 -1.5% 1,790
Commercial 769 1.4% 780
Industrial 243 -4.5% 232
G&A, IT 131 -5.3% 124
Labour 673 -2.9% 654
Other 254 72 326
Interconnection 362 12 374
Credit Cost (1)
24 26 50
Bad Debt & Other 24 22 46
Capitalized Cost & Other (2)
-156 11 -145
Total Opex 2,070 2.2% 2,116
(3)
12. 11
2Q’18 Results
Domestic CAPEX: Optimization and Smart Allocation support EFCF
Organic data, €mln, Δ YoY
23 12
86 93
129 58
357
183
261
253
139
140
IT
Mobile access
Fixed access
Capacity, run and maintain
CPE & success based
995
740
-255 YoY
-25.6%
Other
2Q17 2Q18
+1
-8
-174
-71
+7
5/'17 5/'18 5/'17 5/'18
Traffic Growth
Mobile Fixed
+53% +44%
97%
98%
70% 80%
2Q'17 2Q'18
Coverage
LTE
FTTx
▪ Coverage improved in line with plan
▪ Fixed Access YoY reduction derives from having reached ~80% FTTC coverage. Fixed Access Expansion now mainly FTTH
▪ 4G access temporary reduction due to phasing towards up-and-coming VRAN technology
▪ Heavy traffic growth fully sustained
▪ Optimization in Procurement
13. 12
2Q’18 Results
Relevant Debt Reduction YTD
€mln; (-) = Cash generated, (+) = Cash absorbed, excluding call-outs
-396
-167
Ebitda 2,025
Capex (981)
ΔOWC & Others (141)
Operating FCF 903
Ebitda 1,893
Capex (694)
ΔOWC & Others (1,216)
Operating FCF (17)
(1) O/w € 379 mln was the impact from changed-by-law VAT Payment. No further related drags to occur after 1Q’18
(1)
14. 13
2Q’18 Results
What CEO asked and what we did
2Q’18 Results
1
2
Highlights and Main
Trends
3
Financial Update
DigiTIM
Progression
4 Closing Remarks
15. 14
2Q’18 Results
• More than 40% of Fixed BB Consumer customer base are both fixed and mobile
TIM customers
• Strong push on new convergent loyalty program (TIM Party) with strong
communication plan (TV, digital…): ~ 500k customers joining since launch (May)
• Fixed-to-Mobile convergence reinforced with TIM Connect offer
• Mobile-to-Fixed convergence reinforced with 5GB offer (TIM 100%)
• Additional digital services on wireline: Smart Home and TIM Games
2017 2020
IT & Cloud Revenues
~1.5x
Grow IT & Cloud to become 25% of
total Business revenues
• Evolution towards “ICT company”
• Public cloud and managed services expansion to further grow Large clients base
• Tapping of basic IT opportunity to improve SME’s revenues mix
• Fiber and VOIP migration to protect SME’s ARPU level
Convergence Step-Up on Consumer
More IT Services for Business
Key Domestic Commercial Actions
16. 15
2Q’18 Results
Transformation Drives Productivity
Caring Automated first set of back office processes
▪ Introduced new lean way of working to
improve agents productivity
WHS
Infrastructures,
Network & Systems
On-field technicians productivity
▪ +9% of daily equivalent activities per
technician
Opex / Capex
efficiencies
Contract renegotiation
▪ ~50% of planned professional services
renegotiation completed
Integrated
decommissioning
Become lean, fast and agile, embracing Distributed
Edge Cloud paradigm and reinforce TIM Technologic
leadership
▪ Acceleration of central offices
decommissioning; moving toward a
full-IP network platform to significantly
reduce running costs
Digital & Advanced
Analytics (AA)
Advanced Analytics enabled campaign
▪ New wave of loyalty campaigns on
Fixed and Mobile
Insourcing
Further reduce third party professional services
costs, and leverage TIM workforce through re-skilling
programs
▪ Systematic cross-BU review effort,
training, re-deployment and launch of
multiple waves of insourcing
17. 16
2Q’18 Results
TIM Multi-technology UBB approach
TIM UBB plan is composed of a mix of technologies, fulfilling 2020 Digital Agenda and market requirements,
addressing all customers needs everywhere, with a smart-capex approach: @ home, on the move, in the office.
▪ FTTC for nationwide NGAN up to 200 Mb/s (eVDSL) and 500 Mb/s
(G.FAST), enables fiber 4G/5G backhauling
▪ FTTH coverage will expand rationally on our huge FTTC
infrastructure base, attending any demand up to 1 Giga and beyond
▪ Mobile UBB relies on pervasive LTE coverage, enabling also FWA
solutions on same spectrum
▪ FWA will further expand with 5G technologies
TIM
Technological view Customers view
fast,
reliable,
anywhere
FTTx
Cabinet
Copper
Fiber
Central
office FTTH
FWA
OTB
Splitter
Mobile
UBB4G 5G
>99%
OVERALL
UBB PoP
COVERAGE
BY
2020
Virtual RAN
Multi-technology
Multi-frequency
V-RAN
4G
begins
Full modernization
plan for 4G/5G
2018 2021
18. 17
2Q’18 Results
What CEO asked and what we did
2Q’18 Results
1
2
Highlights and Main
Trends
3
Financial Update
DigiTIM
Progression
4 Closing Remarks
19. 18
2Q’18 Results
Closing Remarks
Company fully committed to DigiTIM Plan
2Q’18 Operational Achievements:
▪ Domestic: Premium positioning maintained, Strong KPIs Performance
▪ Effective cost management and strong increase in Group cash generation
Moving on with extraordinary Projects:
▪ NetCo
▪ 5G
▪ Disposal of non-core assets
21. 20
2Q’18 Results
For further questions please contact the IR Team
IR Webpage
www.telecomitalia.com/investors
+39 06 36882807
+39 02 85956807
Phone
E-mail
Investor_relations@telecomitalia.it
Contact details for all
IR representatives:
www.telecomitalia.com/ircontacts
Investor Relations Contact Details
TIM Slideshare
www.slideshare.net/telecomitaliacorporate
TIM Twitter
www.twitter.com/TIMNewsroom
23. 22
2Q’18 Results
Organic data(1), €mln, % YoY
1H’18 TIM Group Service Revenues Breakdown
48%
29%
12%
9%3%
68%
32%
By Technology
Fixed -0.6%
(Retail +1.3%)
Mobile +1.7%
(Retail +2.0%)
By Business Segment
5%
95%
Fixed
+8.1%
Mobile
+5.9%
Domestic Brazil
Consumer
-0.2%
Business
+3.1%
Nat. WHS
+1.3%
By Technology
▪ Mobile: Strong growth in
postpaid (now 34% of total
customer base) enables
double-digit ARPU growth
YoY
▪ Fixed: TIM Live connections
grew > 420k. Arpu up 13%
(1) Excluding exchange rate impact and non-recurring items
(2) Net of eliminations
Group
Total Serv. Revs.(2)
8,785 +1.9%
Domestic
6,879 +0.8%
Brazil
1,919 +6.0%
Highlights
Sparkle
-3.0%
Inwit +8.9%
-3%
Other &
Eliminations
▪ Mobile: Positive performance
with low single digit growth in
the first half, due to operational
improvements more than
compensating regulatory and
competitive challenges
▪ Fixed:
Positive retail service revenues,
with line losses effect offset
by higher ARPU
▪ Business: Strong growth supported
by unparalleled channel and service
▪ Consumer: Premium and convergent
approach supports stable
performance
▪ National Wholesale: Continued
positive performance
▪ Sparkle: down due to drag on IP
contracts
▪ Inwit: up due to traffic and tenancy
growth
24. 23
2Q’18 Results
FixedMobile
% LTE Coverage
(1) FTTC Passed
% Total Fiber Coverage(1)
Domestic UBB Networks
• ~113 k cabinets passed
• ~325 k FTTH OTB installed
• ~19.4 mln HH passed FTTC
in > 3,600 cities, speed up to 200 Mbit/s
• ~2.7 mln HH connected FTTH
in 30 main cities, speed up to 1Gbit/s
• >19.7k LTE nodes
• 7,336 cities covered in 4G
• 1,474 cities 4Gplus, speed up to 300 Mbit/s
• 12 cities 4.5G, speed up to 700 Mbit/s
2Q’18 Update
26. 25
2Q’18 Results
• Focus on value maximization via accelerated convergence and new
services
• Drive digital and analytics as core differentiators (both cost and
revenues)
• Look for growth in and outside the core (eg. Cloud, IoT, Mobile
Advertising, Data Monetization)
• In Italy, TIM Fixed UBB lines (Retail + WHS) to grow to ~9 million by
2020 (3x 2017 figure)
DRIVERS
Sustain
Top Line &
Profitability
Relevant
Step-up in
3-Years
Cumulated
FCF
Strong
Deleverage
and drop in
Capex
Intensity
TARGETS / KPIs
• Group Adj. NFP/EBITDA
~2.7x in 2018, further
reducing both in 2019 and
2020 (3)
• Domestic Capex/Sales
<20% by YE2019
• 2018-’20 Group Cumulated
Equity Free Cash Flow
of ~ €4.5bn (4) excluding
spectrum and pre-dividend
• Domestic Service Revenues :
Broadly Stable
• Domestic EBITDA:
Low single digit 2017-’20
CAGR (1)
• Brazil & Inwit:
Continued Growth in
Revenues and Ebitda (2)
• Enhanced cash generation, supported by operational and financial
discipline, will lower our Group Net Debt/Ebitda ratio by end 2018
• Domestic Capex / Sales moving back to normal intensity, having
now completed catch-up phase
• Selective growth investments to maximize ROI
• Lower capital intensity following network rollout
• Reduce costs while improving customer satisfaction through agile
customer journey redesign
(1) On Organic basis
(2) Specific Company guidance is in the Annex section
(3) Spectrum not included
(4) Cumulative ’15-’17 Equity Free Cash Flow at €1.6bln, excl. M&A
Over2018-2020
PlanPeriod
2018and20192020
GOALS
TIM 2018-’20 Targets
27. 26
2Q’18 Results
1,015
1,488
600
750
994
332
1,244
6,4235,000
582
2,443
1,267
564
3,089
2,423
11,153
21,521
3,137
8,137
1,597
3,931
1,867
1,314
4,083
2,755
12,397 27,944
Liquidity margin Within 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Beyond 2023 Total M/L Term
Debt
Bonds Loans (of which long-term rent, financial and
operating lease payable € 2,147)
Drawn bank facilityUndraw portions
of committed
C&CE
(1) € 27,944 mln is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations
(€ 745 mln) and current financial liabilities (€ 706 mln), the gross debt figure of € 29,395 mln is reached
Maturities and Liquidity Margin
Liquidity
Margin
€mln
(1)
Covered until 2021
Debt Maturities
28. 27
2Q’18 Results
Well Diversified and Hedged Debt
Average m/l term maturity:
7.87 years (bond only 8.02 years)
Fixed rate portion on gross debt approximately 71.1%
Around 31% of outstanding bonds (nominal amount)
denominated in USD and GBP and is fully hedged
Cost of debt: ~4.5 %
Gross debt € 29,395
Financial Assets € (4,254)
of which C&CE and marketable securities € (3,137)
- C & CE € (2,102)
- Marketable securities € (1,035)
- Government Securities € (456)
- Other € (579)
Net financial position € 25,141
16.8%
73.5%
2.3%
7.4%
Maturities and Risk ManagementBanks & EIB
4,937
Other
677
Op. leases and long rent
2,184
€mln
N.B. The figures are net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets, as follows:
- the impact on Gross Financial Debt is equal to 1,578 €/mln (of which 204 €/mln on bonds)
- the impact on Financial Assets is equal to 678 €/mln
Therefore, the Net Financial Indebtedness is adjusted by 900 €/mln.
N.B. The difference between total financial assets (€ 4,254 mln) and C&CE and marketable securities (€ 3,137 mln) is equal to € 1,117 mln and refers to positive
MTM derivatives (accrued interests and exchange rate) for € 808 mln, financial receivables for lease for € 95 mln, deposits beyond 3 months for € 1 mln and
other credits for € 213 mln.
Bonds
21,597
29. 28
2Q’18 Results
TIM Group 2Q’18 – IFRS 9-15 impacts
Revenues Service Revenues EBITDA
2Q’18
old IFRS
ΔIFRS
15
2Q’18
new
IFRS
2Q’18
old IFRS
ΔIFRS
15
2Q’18
new
IFRS
2Q’18
old IFRS
ΔIFRS
9 - 15
2Q’18
new
IFRS
Reported data, € mln,
Rounded numbers
TIM Group 4,770 -38 4,732 4,392 -39 4,353 2,025 -79 1,946
Domestic 3,809 -36 3,773 3,480 -39 3,440 1,667 -69 1,598
Brazil 970 -2 968 921 0 922 362 -11 351
As from January 1, 2018, IFRS 9 (Financial Instruments) and IFRS 15 (Revenues from Contracts with Customers) have to be
applied. In order to allow comparison of the results for 2Q’18 with those for the same period of the previous year, financial
statements data are also prepared under previous accounting principles.
IFRS 9
Impacts the determination of expected losses on trade receivables and other financial assets (change from the incurred loss
model provided by IAS 39 to the expected credit loss model).
IFRS 15
Impacts the revenue recognition of fixed and mobile offerings as well as the recognition of relevant contractual costs, without
any impacts on cash flows.