Update Post 2015-2017 plan outline presentation

TELECOM ITALIA GROUP
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Telecom Italia Group
Update post 2015-2017 Plan Outline Presentation

FY 2014 Preliminary Results & 2015-2017 Plan Outline 1
Safe HarbourThis presentation contains 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 Telecom Italia 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, Telecom Italia 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. Telecom Italia 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 business or acquisition strategy or
planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors should 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 which may identify factors that affect the forward looking statements included
herein.
The 2014 preliminary financial results of the Telecom Italia Group and the data of the previous years provided for comparison were drafted in accordance with the International Financial
Reporting Standards issued by the International Accounting Standards Board and endorsed by the European Union (designated as “IFRS”).
The accounting policies and consolidation principles adopted in the preparation of the preliminary financial results for the 2014 FY have been applied on a basis consistent with those
adopted in the Annual Financial Statements at 31 December 2013, to which reference should be made, except for the new standards and interpretations adopted by the Telecom Italia
Group starting from 1 January 2014 which had no effects on the 2014 preliminary financial results. The 2014 preliminary financial results have not been verified by the independent auditors.
Following the classification, starting from the fourth quarter 2013, of the Sofora - Telecom Argentina group as a disposal group (Discontinued operations/Non-current assets held for sale),
the consolidated financial statements data of prior periods (including the twelve months ended 31 December 2013) have been restated accordingly and therefore the Sofora - Telecom
Argentina group is no longer separately presented as a business unit.
Furthermore:
• starting from 2014, Organic changes in Revenues, EBITDA and EBIT are determined excluding, where applicable, only the effects of the changes in the scope of consolidation and
exchange differences and therefore don‟t take into account, as in the past, non-organic income and expenses, including those non-recurring;
• starting from 2014, the Domestic business unit includes the Olivetti group, in addition to Core Domestic and International Wholesale. This different presentation reflects the commercial
and business placement of the Olivetti group and the process of integrating its products and services with those offered by Telecom Italia in the domestic market. Therefore, the Olivetti
group is no longer separately presented as a business unit;
as a result, the data for prior periods under comparison have been restated, accordingly.
In this presentation reference is also made to a normalization called “Domestic Underlying EBITDA trend”, which is based on the Adjusted (for one-offs and discontinuities) Reported
Domestic EBITDA. This representation is provided as additional information to our Reported EBITDA that represents Operating profit before depreciation and amortization, capital gains
(losses) and impairment reversals (losses) on non-current assets.
Marco Patuano - Piergiorgio Peluso – Rodrigo Abreu

Marco Patuano
2014 Group Main Financials and Innovative KPIs
(1) excluding one-offs: 82 €mln Sparkle provision reversal in 2014 and 84 € mln Antitrust fine in 2013; including one-offs: 190% of FY‟14 target
(2) Brazilian spectrum acquisition and clean-up costs=936 €Mln; (3) Latam Spectrum= 540 €Mln for Brazilian Spectrum & 344 €Mln for Argentinean Spectrum
21.6 €Bln
Revenues Ebitda
Capex Net Debt
Italy Brazil
8.8 €Bln
4.0 €Bln (-5.4% YoY)
excluding Brazilian 700MHz Auction(2)
5.0 €Bln (+13.3YoY)
MBB project: 125 Cities in 2014
4G site: +92% YoY @ 3.7k
Fiber Coverage: 29%
4G coverage: >80%
Domestic Efficiency(1)
104%
of FY‟14 Target
Organic, €Bln, %YoY
25.8 €Bln (-1.0 €Bln YoY)
excluding Latam Frequencies(3)
26.65 €Bln (-0.2 €Bln YoY)

Agrigento
Alessandria
Ancona
Aprilia
Arezzo
Asti
Bari
Benevento
Bergamo
Bologna
Bolzano
Brescia
Brindisi
Busto A.
Cagliari
Carpi
Casoria
Catania
La Spezia
Latina
Legnano
Livorno
Lucca
Mantova
Massa
Matera
Messina
Milano
Modena.
Monza
Napoli
Novara
Padova
Palermo
Parma
Pavia
Catanzaro
Cesena
Cinisello B.
Como
Cremona
Cuneo
Faenza
Fano
Ferrara
Firenze
Foggia
Forli
Gela
Genova
Giugliano
Grosseto
Gugliasco
Imola
Perugia
Pesaro
Pescara
Piacenza
Pisa
Pistoia
Potenza
Prato
Quartu S. Elena
Ragusa
Ravenna
Reggio Calabria
Reggio E.
Rimini
Roma
Salerno
Sassari
Savona
Sesto S.G.
Siena
Siracusa
Taranto
Terni
Torino
Torre del
Greco
Trento
Treviso
Trieste
Udine
Varese
Venezia
Verona
Vicenza
Vigevano
Viterbo
TI’s New Course started in 2014: Deploying UBB and
selling it
LTE Coverage
wider LTE
coverage in Italy
actual 2014
NGN Coverage(1)
target 2014
Plan „13-‟15
133 Municipalities covered
+95 cities YoY
  
29% coverage
+12 pp YoY
Marco Patuano
+27pp
MBB Users Growth YoY
+1.825 +1.985
+1.573 +1.627
21% 27%
45%
64%
1Q'14 2Q'14 3Q'14 4Q'14
MBB
% of LTE
LTE CB 409 610 844 1,343
15
45
103
151
231
+30
+58
+47
+80
4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Fiber Users Growth
more than 4x the
coverage of our
main competitor
Today
>80%
(1) As of Jan 30, 2015
Average daily acquisition (k)
0.5 1.0 0.8 1.3
MBB CB 8,677 9,151 9,596 10,071
‟000 ‟000
~40%
~50%
51%
61%
74% 77%
FY'13 1Q'14 1H'14 9M'14 FY'14

1,836 1,805 1,779 1,800
1Q'14 2Q'14 3Q'14 4Q'14
1.099
1.138
1.189 1.183
1Q'14 2Q'14 3Q'14 4Q'14
3.554 3.567 3.594 3.619
1Q'14 2Q'14 3Q'14 4Q'14
Marco Patuano
Domestic Service Revenues trend
Abs QoQ
€ mln,‟000
BB-based services and Monetization of Quality supported
Domestic Top Line Improvement
3,664
+13 +27 +25
+70
net of AGCOM
price revision(1)
(1) 45 €mln for adjustment access price 2010-2012
-8,8% -8,9%
-6,2%
-3,2%
-10,1% -10,5%
-9,1% -9,1%
-4,4%
1Q 2Q 3Q 4Q
2014
2013
net of AGCOM
price revision(1)
YoY
Retail Fixed Service Revenues trend Mobile Service Revenues trend
-14,9%
-13,3%
-7,1% -5,7%
YoY
YoY
+4.7pp
Fixed Service Revenues Trend (Retail+Wholesale)
-7.4% -8.6% -7.2% -5.3%
net of AGCOM price revision(1)
-3.7%
+1.4pp
+2.3pp
-7,4%
-8,9%
-6,2%
-3,9%

-7,9%
-11,6%
-10,9%
-5,4%
-9,8% -8,5%
1H YoY 3Q YoY 4Q YoY50
4Q'13 4Q'14
Marco Patuano
Domestic Ebitda
%YoY,€ mln
Domestic Ebitda trended upwards
handset
subsidy
net of new handset
subsidy approach
1,910
1,702
-10.9%
-8.5%
-9%
-7%
-3%
1H YoY 3Q YoY 4Q YoY
Normalized for discontinuous increases in labour costs,
provisions, handset subsidy and AGCOM price revision
Underlying Ebitda trend
FY‟14 -7%
Reported Ebitda trend
net of new
handset subsidy
approach
reported
Domestic Discontinuities
Adjustments for non-recurrent effects on 4Q‟14 Ebitda YoY
performance are:
on 4Q‟14:
 ~+45 mln euro for AGCOM LLU 2010-2012 revision
impact
 ~ +10 mln euro for incentive plans & other labour costs
 ~+15 mln euro for other provisions
on 4Q‟13:
 ~ -75 mln euro, of which ~ -50 mln euro for new handset
subsidy approach and ~ -25 mln euro for other

Marco Patuano
Domestic Mobile: Building Further Improvements in a
Polarized Market
€ mln, %YoY
Browsing Revenues
Total Revenues Service Revenues
Highlights
Revenues
2014
1,175 1,264 1,284 1,368 1,099 1,138 1,189 1,183
264 281 301 326
-14,4%
-10,0%
-5,6% -5,1%
-16,4%
-17,8%
-13,6%
-11,2%
1Q'14 2Q'14 3Q'14 4Q'14
2014
2013
-14,9%
-13,3%
-7,1%
-5,7%
-17,8% -18,3%
-14,8% -14,3%
1Q'14 2Q'14 3Q'14 4Q'14
+12,9% +11,5% +11,7%
+10,9%
-4,2%
+2,4%
+11,5%
+18,2%
Revenues
2014
Revenues
2014
2014
2013
2014
2013
+8.6pp
double-digit
growth for 6
months in a row
Price War Drag is going away
MTR effect has bottomed-out
Increased Bundle adoption: 63% overall (+8 p.p. YoY)
59% on Consumer Segment (+9 p.p. YoY)
-5.0%(1)
(1) Net of national roaming price reduction

-7,4%
-8,6%
-7,2%
-5,3%
-3,7%
Domestic Fixed: Hitting the Gas on Internet
Service Revenues Trend
net of AGCOM
price revision(1)
Speeding-up
growth
Marco Patuano
€ mln, %YoY,
655 625 597 568
5.111 5.054 5.019 4.961
1,167 1.259 1.315 1.392
1Q'14 2Q'14 3Q'14 4Q'14
FastBBFlatBBFreeBB
-58-57 -35
+77+92 +56
-29-30 -28
13.027 12.828 12.656 12.480
1Q'14 2Q'14 3Q'14 4Q'14
-200 -171 -176
19.2 19.6 20.0 20.1
total 6,933 6,939 6,932 6,921
-0,1% +1,1%
+3,5%
+4,4%
+1,7% +1,3%
+1,2%
-0,8%
1Q'14 2Q'14 3Q'14 4Q'14
Internet Service Revenues
BB Customer Base
ARPU BB
Fixed Access
Total
Revenues
-6.9% -8.3% -6.2% -5.5%
-3.9%
net of AGCOM
price revision(1)
2014
2013
(1) 45 €mln for adjustment access price 2010-2012
(2) Fast ADSL + Fiber (both Flat)
+292 upselling to Fast BB (2)
€/month
„000
1Q‟14 2Q‟14 3Q‟14 4Q‟14

Agenda
Marco Patuano
 FY 2014 Preliminary Results
 2015-2017 Plan Outline
 Financial Update
 2015-2017 TIM Brasil Plan Outline
 Appendix

Marco Patuano
Future-Proofing our Infrastructure for Enhanced Cash Flow
Italy Brazil
NGN: ~75% coverage
in 2017
LTE: >95% coverage
in 2017
(1) Including Brazil License & Clean-up costs
(2) Group Ebitda-Capex
New Investments
~10 €Bln in ‟15-‟17
of which 5 €Bln for
innovation
>14 R$Bln
in ‟15-‟17
Business Transformation
Investment Monetization
& Core Revenues
Stabilization
Efficiency & Process
Transformation
Innovation
Moving Cash Flow (2) beyond
Stabilization
~3.8(1)
2014 2015 2016 2017
LTE: ~80% coverage
in 2017
4G Sites: >15k in 2017
3G Sites: >14k in 2017
Hetnet Strategy
Commercial Efficiency
Evolution
Network Costs Optimization
Process-Driven Efficiency
Single Brand
& Convergence People: Change of Mix
Italy Brazil
Italy Brazil

2014 2015 2016 2017 2018
onwards
2014 2015 2016 2017
Marco Patuano
Creating Value through Next-Generation Networks
Acceleration
Avg Capex/Revenues
Old „14-‟16 Plan
Avg Capex/Revenues
New „15-‟17 Plan
~18.5%
New ‟15-‟17 Plan
Domestic Capex ~10€Bln
Old ‟14-‟16 Plan
Domestic Capex ~9€Bln
Domestic Capex Plan
New „15-‟17 Plan
Innovative Capex
~5 €Bln
Old „14-‟16 Plan
Innovative Capex
~3.4 €Bln
Innovative Capex Breakdown
NGN ~2.9 €Bln (+1.1 €Bln vs Old Plan)a
LTEb
IT Cloud ~0.5 €Bln (flat vs Old Plan)c
Sparkle ~0.2 €Bln (flat vs Old Plan)d
Transformation ~0.5 €Bln (+0.4 €bln vs Old Plan)e
~0.9 €Bln (flat vs Old Plan)
o/w 0.5 €Bln
on FttH
Peak years
Efficiency Delivers a Relevant Contribution
for the funding of Innovation
~23.0%

2014 2015 2016 2017
Fiber CB on
TI BB CB
~3%
Marco Patuano
Fiber Italy: We are increasing our Competitive Advantage
Fiber CB Growth
today @
29%
>50%
~75%
2014 2015 2016 2017
New
Plan
~10x
D
+1mlnNew „15-‟17
CB Fiber Growth
Old „14-‟16
CB Fiber Growth
<60%
Connection speeds faster than DAE targets:
 50 Mb/s currently
 100 Mb/s through Vectoring
Expected Ebitda monthly uplift from Fiber ranges
5-10 €/line coming from:
 Fiber Premium;
 Lower churn
 +ve contribution from New Services Content
 Up to 1Gb/s with FttH
Fiber Coverage Plan
Old
Plan

Marco Patuano
LTE Italy: Pushing on Quality, Not on Price
60%
80%
today @
>80
>95%
2014 2015 2016 2017
Target reached
2
years in
advance
LTE Coverage Plan
36%
50%
64%
2014 2015 2016 2017
innovative on business generated traditional on business generated
Revenues Mix(1)
Revenues
Cagr „14-‟17
+10%
(1) Innovative revenues = browsing+data content; traditional revenues =voice+SMS
13%
~60%
2014 2015 2016 2017
LTE Users on Mobile BB CB
+45
p.p.New
Plan
Old
Plan
Geographic Coverage
~50% ~90%+40
p.p.
Indoor Coverage >80%

~14(1)
~7
~1.5
~7
~3.5
~12
~7
Consumer HH TV HH
The TI Plan fits into the Italian Market
Mobile BB
only
Fixed BB
TLC Households TV Households
~26 mln ~26 mln
Already
on PayTV
No PayTV
Interested in PayTV
o/w KO dish 1 mln
Upgrade to Fiber &
TV potential target
Rebuild the Value of the Voice
Push on Convergence through
flatization to reduce churn
Upgrade to BroadBand through
New Special offer & Video Content
Push on win-backs from the
dongle community through F-M
Convergence & Quad-Play
TI M/S 30%
TI M/S 50%
Marco Patuano
3
2
Voice only
pay-per-use
Voice only
on flat options
TI M/S 100%
1
10% <40 years & holiday homes
30% 40-70 years
60% >70 years
(1) Addressable Market

Marco Patuano
A n-Play Strategy to Grow the Value of our Access
F-M for
Mobile only customers
Targeted Actions for specific
segments
Keeping price points rational
Enlarge Proposition of
Convergent Offers
Lever on Convergence
Mobile BB
2
2014 2017
+20
p.p.
% Convergent Offers(1)
(1) % Convergent offers on Total Consumer Fixed Access
Massive Flatization
Retention of Voice Customers
Use BB as an anchor
Upgrade to TV
Defend the Value
Proposition of Access
Less Erosion
Fixed
1
41%
57%
2%
2014 2017
1-Play
2-Play
3-Play
decreasing
stable
growing
3
Launch
in April
Wide range of content offering:
SVOD, events, etc
Premium offer with live
events & on-demand
channels
Base-content enabler
Integration with linear TV
Pay tv penetration in Italy is 27%:
market is dominated by Premium Pay
DTT/DTH and BB TV is modest (~5%)
TV Business: Hub Approach
Video Content
Defend traditional, Drive Mobile BB – to – Fixed BB substitution
and further expand Fixed BB penetration through Video Content
Change of Fixed Access Mix

Marco Patuano
Moving to a single Brand: TIM brings together our best parts
 Repositioning to a single commercial
brand that already enjoys best in class CSI
scores on mobile (LTE-driven) and fiber
 Position TIM as the official enabler of
“Digital Italy”
 Towards a new value proposition focused
on innovation and quality
 Simplifying the overall customer
experience and OTN services
 Meeting the increasing demand for a
multiple and bundled products available
anytime, anywhere, anydevice

 Rightsizing
 Insourcing
 Use of new “Jobs Act” for workforce
mix evolution
 “Active Solidarity” agreement to
materially increase young personnel
More Value in Our People
TI Workforce
Marco Patuano
Labor cost restructuring to combine
Efficiency & HR Development
20-30
30-40
40-50
50-60
60-70
20-30
30-40
40-50
50-60
60-70
Age Curve Evolution
today
2017-2018
ageage
Mix
1%
40%
47%
9%
3%
6%
53%
27%
6%
8%

~1.2 ~1.1 ~1.1
~1.6 ~1.5 ~1.4
2,7
2,7
3.1 3,1
2013 Target
2014
Actual
2014
2015 2016 2017
-0.2
target
190% of target reached including one-offs(4)
104% of target reached excluding one-offs(4)
(4) 82 mln euro Sparkle provision reversal in 2014 and 84
mln euro Antitrust fine in 2013
8.38.6
-0.4
actual
Market /
Customer
Driven(3)
Process /
Asset Driven(2)
Personnel
Costs
Volume/
Revenue-
Driven (1)
Addressable Efficiency
Area
Not Applicable
~20% on
rev.
2013 - 2014 Plan 2015 – 2017
Allow insourcing and
increase productivity
> -0.1
~ -0.3
> -0.1
„15-‟17 cum.
Efficiency Target
>1 €Bln
Domestic Opex Efficiency
€ bln
Marco Patuano
-20%
„17 vs „14
(1) Interconnection, Cost of Equipment, Other COGs
(2) Industrial costs, G&A, Real Estate, Other
(3) Acquisition costs, ADV, Customer Care, Other commercial costs

Group Operating and Financial Outlook
Group Domestic Brazil
Organic data
Ebitda YoY Growth in
2017
YoY Stabilization in
2016
YoY Growth in
2017
Continued Growth
Capex(1)
Cum. „15-‟17
Net Debt Adj.
/Ebitda 2017
Reducing Towards
2.5x(2)
~10 €Bln >14 R$Bln
(1) Including Italian GSM license extension
(2) On reported EBITDA; ratio includes Mandatory Convertible equity strengthening effect for 1.3€Bln in November 2016
Note: Organic data exclude impact from change in perimeter and FX.
Avg €/Reais exchange rate: 3.21
~14.5 €Bln
Marco Patuano

Agenda
Piergiorgio Peluso
 Appendix

1.774
- 1,259
Brazil
–22
6.998
-2,783
-936
+396
-1,024
Domestic
3,203
EBITDA Capex Capex License WC Licenses WC excluding
licenses
OpFCF
Solid Operating FCF Generation Confirmed
€ Mln
8,786(1)
3,174(1)
Group Capex(1) -4,984
Brazilian 4G Auction Cash Out
-540
Group DWC(1) -628
Brazilian Contribution
to OpFCF
(excluding 4G auction)
518 mln €
D D
FY‟14
Trade Payables
Trade Receivable
Others
-0.4
-0.2
-0.4
-0.1
-0.1o/w TI Sparkle provision
reversal
DWC Domestic -1.0
€ Bln
(1)TI Group figures include TI Media & other subs.
Piergiorgio Peluso
Domestic Contribution Brazilian Contribution Brazilian 4G Auction Cash Flow Impacts
o/w AGCM fine
o/w AGCom price revision(2) -0.1
(2) AGCOM wholesale price revision 2008/2010

2014 Opex Efficiency Target Fully Reached
€ mln
Piergiorgio Peluso
8.647 +13 -113 -261 +19 8.305
FY'13 Volume Revenues
Driven
Market / Customer
Driven
Process / Asset
Driven
Labour Cost FY'14
Excluding from Process Driven:
82 €Mln Sparkle provision
reversal
84 €Mln euro Antitrust fine
Efficiency -374 €Mln
Total Opex
-342 €Mln
Efficiency -208 €Mln
104% of Target
reached
Commissioning: Reduction in volume
of acquisitions
Advertising: Cost optimization due to
unification of format and brand
Customer Care: Productivity improved
along with Volume growth
Operational Costs, Network & IT:
purchasing savings and positive
impact from process reengineering
G&A: Zero budget approach and policy
review
(1) Interconnection, Cost of Equipment, Other COGs
(2) Acquisition costs, ADV, Customer Care, Other commercial costs
(3) Industrial costs, G&A, Real Estate, Other
(1) (2) (3)
190% of Target
reached

188
1.649
1.707
663
603
346
281
186
-60 -65 +6 -188
191
FY'13 IT commercial&others IT others subsidy FY'14
33%
~55%
2014 2015 2016 2017
20%
24%
27% 28%
33% 34% 35% 36%
1Q 1H 9M FY
Domestic Capex Efficiency fueled more Innovation
+156 -97
3,031
2,783
€ mln
a b c d
Innovative investment on network capex
Network
innovative traditional
Efficiency(1)= 216 €mln
(1) total domestic capex efficiency= a b c d+ + +
2013
2014
Traditional
Capex
Innovative
Capex
2015-2017 Capex Mix
Efficiency Target
„15-‟17 cum.
~0.7 €Bln
2014 Capex Efficiency
Piergiorgio Peluso
handset
subsidy
network
IT
commercial &
other IT
others

1.404
975
1.104
1.112
1.617
1.617
7.8297.000
1.970
1.879
2.963
2.324
3.165
11.313
23.614
6.112
13.112
3.374
2.854
4.067
3.436
4.782
12.930 31.443
Liquidity
margin
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Beyond 2019 Total M/L Term
Debt
€ 31.443 mln is the nominal amount of outstanding medium-long term debt. Adding by Mandatory Convertible Bond (€ 1.300 mln), discontinued operations (€ 28 mln), IAS adjustments (€ 1.192 mln) and
current financial liabilities (€ 458 mln), the gross debt figure of € 34.421 mln is reached. N.B. Debt maturities are net of € 1.281 mln (face value) of repurchased (of which € 523 in the 2013 and € 543 in
the 2014) own bonds (of which € 1.066 mln related to bonds ue within 2016).
Loans (of which long-term rent, financial and operating lease payable € 1,200) Drawn bank facilityBonds
Refinancing at record low rates
€ mln
2011-2015 Bond Issuance Yields
Undraw portions of committed
C&CE (escluded discontinued)
Covered until 2018
Piergiorgio Peluso
Yield on issue date
Tenor
Issue date
Highlights
5 7 5,25 6,5 3 5 8 7 7 10 8
5,198%
4,769%
6,968%
6,184%
4,740% 4,570%
4,134%
5,054%
4,594%
3,993%
3,330%
TI‟s funding costs since 2013 have significantly
lowered
New record-low coupon has been printed with
our January 8-yr issue @ 3.25%
ECB QE plans running until September 2016
further support favourable funding environment
This context will continue offering TI significant
refinancing opportunities
Debt Maturities and liquidity Margin

2013 2014
Net Debt
before Latam
frequencies
2014
Net Debt
including
Latam
frequencies
2014 2017
-1.3
Latam
frequencies
impact
2014 Debt reduction & 2015-2017 Free Cash Flow Evolution
Piergiorgio Peluso
~26.8
~+0.9
~26.65 ~26.65
Average debt reduction of ~700 €Mln per year
before Mandatory Convertible (Nov. „16)
~25.8
~-1.0
~1.0 €Bln of deleverage
before Latam frequencies
impact
Net Debt/Ebitda Ratio ~3.0x towards 2.5x in 2017
2013 - 2014 2014 – 2017
Mandatory
Convertible Bond
€ Bln
DPS BoD proposal
for 2014 (cash 2015)
Ordinary Shares
Saving Shares
Zero
2.75 €cent confirmed

Agenda
Rodrigo Abreu
 Appendix

Mobile Market Revenues Evolution
Mobile Net Service Revenues, %
Strategic Positioning - Internet Market Evolution
Revenue
Mix
• Most households without internet access
• Mobile better suited to break price barrier
9,5
2,6
Jan-13 Nov-14
0,34 0,30
0,23
0,16
0,10 0,06 0,03 0,02
2012 2013 2014 2015 2016 2017 2018 2019
1%
37%
2%
MTR Cut
(R$)
Voice Incoming
Voice Outgoing
SMS
Internet 60%
• Maturing market: Customer base
growth slowdown
• Consumption migrating from voice to
data2010 2020
SMS Traffic Sharp
Decrease
(billions of SMS sent)
Voice
Decline
Internet
Opportunities
Mobile Internet is the growth driver and will be the largest mobile market,
although Voice remains important
27%
57%
4%
12%
Revenue
Mix
Rodrigo Abreu

Getting People Connected: Broadband Penetration
Data: Connectivity and Beyond
Rodrigo Abreu
 Smaller gap between Brazil and developed markets
 Additional drivers for growth: days of use, data consumption
 Affordable prices
 Huge gap between Brazil and developed markets
 Lack of infrastructure: low quality and speed
 Affordability issues (high prices, combos)
Entering in the Content World
Content &
Usage Offer
Pure
Connectivity
Offer
Connectivity
Digital Identity & Security
Proximity & MPayment
Connected Home & In Cars
RichCom
Apps
Social
Video
Music
Gaming
OTT
Telco
COOL
TRUST
QoE(1)
and
Caring
105%
90%
79%
72%
66% 63%
90% 83%
73% 73%
55%
32%
Fra UK USA Jap Rus Bra Jap USA UK Ita Fra Bra
Δ: 43
p.p.
Δ: 19 p.p.
Fixed (% households) Mobile (% population) Developed
markets avg: 82%
Developed
markets avg: 75%
(1) Quality of experience

Small Cells
MACRO SITES
 1,400 sites in 2015
 3,902 sites in 15-17
SMALL CELLS
 800 sites in 2015
 3,477 sites in 15-17
WiFi / Femto / DAS
 3,000 WiFi in 2015
 >150 DAS in 2015
HetNet
% of Urban Covered Population
2G
3G
4G
95% 95%
78% 79%
27%
86%
2013a 2014a 2015e 2016e 2017e
2014 Actual 2015 Bdg 2016 Plan 2017 Plan
1.9k
3.7k
>15k
2013a 2014a 2015e 2016e 2017e
9.1k 10.4k
>14k
2013a 2014a 2015e 2016e 2017e
0.7k
1.5k
5k
2013a 2014a 2015e 2016e 2017e
Network Rollout
State of the art Capex Allocation: Enhance Quality to
Increase Returns
New Coverage Strategy
Rodrigo Abreu
IRU + Construction
SWAP until 2014
SWAP @ 2015-2017
Legend
2G
3G
4G
2014a 2015e 2016e 2017e
TIM LD BackboneTechnology Capex Allocation
MBB Project Geographic Area
• 1,137 cities prioritized due to business relevance, based on
IRR and Payback
• MBB program is addressing >70% of TIM's business, and is
the key investment program in 2015-2017
• High business concentration in few cities allows for a focused
infrastructure enhancement program
Number of 4G Sites
Number of Wifi & Small Cells
Number of 3G Sites

2014a 2017e 2014a 2017e
2014a 2015e 2016e 2017e 2014a 2015e 2016e 2017e
2014a 2015e 2016e 2017e
2014a 2017e
SAC (Subscriber Acquisition Cost)
(R$)
Bad Debt
(R$)
Business Growth
Network and Commercial Synergies
Network & Interconnection Savings
Rodrigo Abreu
2013a 2014a 2015e 2016e 2017e
Data Traffic Expectation
3G Data Traffic
LTE Data Traffic
(in petabytes)
Mobile Customer Base
(mln customers)
73.4
75.7
2013a 2014a 2015e 2016e 2017e
Fixed Business Progress
Operational Efficiency
Network &
Interconnection Cost
(R$)
Leased Lines Cost
(R$)
Flat network and
interconnection
cost as a
percentage of total
costs
EBITDA Evolution
(R$ without intercompany)
EBITDA - Capex

60k
130k
>500k
2013a 2014a 2015e 2016e 2017e 2013a 2014a 2015e 2016e 2017e
2013a 2014a 2015e 2016e 2017e
Corporate Solutions as a Sustainable Business
Fixed Corporate Solutions & Live TIM Positive Trends
From option value to reality:
 Accelerate growth through
incremental investment
 Focus on keeping customer
experience leadership
 Introduction of new services
(Voice and Bluebox)
 Support the discussion on
“Banda Larga Para Todos”
program
Rodrigo Abreu
Live TIM Plan: Accelerating Growth
Customer Base
(thousands customers)
Investments
(R$; YoY)
+3x
+9x
2015-2017 Drivers:
 Revenue and EBITDA rebound
 Sales team resizing and training
 Customer care unification (F+M)
 Improvement on service level
 Fine tuning mobile portfolio
 Launch of new convergent solutions2013a 2014a 2015e 2016e 2017e
EBITDARevenues from New Sales
(R$; YoY)
+9x
FIXED
MOBILE
CONVERGED
SOLUTIONS

48% 40% 37% 35%
52% 60% 63% 65%
2014a 2015e 2016e 2017e
Innovative
Traditional
Innovative and Traditional Investments
(R$; %)
MTR Impact Analysis
(R$; %)
Mobile Net Revenues Analysis
(R$; %)
24%
12%
31%
18%
2010 2011 2012 2013 2014 2015e 2016e 2017e
-15% -11% -25%
Net Services
Revenues
Exposure
EBITDA
Exposure
-33%MTR Cut (% YoY)
2013A 2014A 2017e
Innovative:
Traditional:
Data
Content
Other
Voice
Incoming
SMS
+48%
-11%
% YoY
Near
mid-single
-35% -44%
~5 bln
~9 bln
A Close Look at
Business Performance
Perspectives
2015-2017 Guidance
Rodrigo Abreu
18.8 19.9 19.5
2012A 2013A 2014A 2015e 2016e 2017e
Net Revenues
(R$ billion)
5.0 5.2 5.5
2012A 2013A 2014A 2015e 2016e 2017e
EBITDA
(R$ billion)
Others/
Licenses
0.6 0.4
2.9
3.1 3.5
3.9
2012A 2013A 2014A 2015e 2016e 2017e
Organic
3.8 3.9
6.9
CAPEX
(R$ billion)
Continued
growth
Continued
growth,
improving
margin
CAPEX
2015-2017:
>14 R$Bln

Agenda
 Appendix

Total
Revenues
Ebitda
Group
21.6 €bln
-5.4% YoY
8.8 €bln
-6.8% YoY
FY‟14
Organic data, € mln, %YoY
Capex
Including
License(1)
Excluding
License(1)
5.0 €bln
+13.3% YoY(3)
4.0 €bln
-5.4% YoY
Net Debt
Including
Licenses(2)
Excluding
Licenses(2)
26.65 €bln; (-0.2 €bln vs FY‟13)
25.8 €bln; (-1.0 €bln vs FY‟13)
(1) Brazilian Spectrum & Clean-up cost
(2) Brazilian & Argentinean Spectrum
(3) Reported data
Domestic Brazil
15.3 €bln
-6.6% YoY
7.0 €bln
-9.6% YoY
2.8 €bln
-8.2% YoY
6.2€bln
-2.1% YoY
1.8 €bln
+6.6% YoY
2.2 €bln
+62.7% YoY(3)
1.2 €bln
+1.5% YoY
Telecom Italia Performance by Markets – Full Year 2014

-5,7% -4,8%
-8,5% -8,1%
1Q 2Q 3Q 4Q
-8,2% -7,4%
-11,6% -11.0%
1Q 2Q 3Q 4Q
+7,8% +8,0%
+6,5%
+4,6%
1Q 2Q 3Q 4Q
Service
Revenues
Ebitda
Capex
4Q‟14 Group
4.9 €bln
-4.2% YoY
2.2 €bln
-8.1% YoY
1.4 €bln
+4.1% YoY
-6,5%
-7,1%
-5,7%
-4,2%
1Q 2Q 3Q 4Q
-5,8%
-9,6%
-12,5%
+4,1%
1Q 2Q 3Q 4Q
Domestic
3.6 €bln
-4.5% YoY
1.7 €bln
-11.0% YoY
1.0 €bln
-1.5% YoY
-8,7%
-8,8%
-6,2%
-4,5%
1Q 2Q 3Q 4Q
-14,9%
-10,9% -9,3%
-1,5%
1Q 2Q 3Q 4Q
Brazil
1.3 €bln
-3.4% YoY
0.5 €bln
+4.6% YoY
0.4 €bln
+19.2% YoY
0,3%
-2,0%
-3,9% -3,4%
1Q 2Q 3Q 4Q
+30,4%
-7,0%
-18,4%
+19,2%
1Q 2Q 3Q 4Q
Telecom Italia Performance by Markets - 4Q’14
Organic data, € mln, %YoY

4Q‟14 Reported
€ mln, %YoY
Organic(1)
Telecom Italia 4Q’14 Group Results
Weight(2)€mln YoY YoY
Capex(3)
Domestic
Brazil
Revenues
Domestic
Brazil
Ebitda-Capex(3)
Domestic
Brazil
Ebitda
Domestic
Brazil
(1) Starting from 2014, Organic performance includes only exchange rate variations and impacts from perimeter changes
(2) Including TI Media, Other & Elimination. Olivetti is included in the Domestic perimeter
(3) Capex w/o licence
net of new handset
subsidy approach
+3.3%
-1.5%
+16.5%
+4.1%
-1.5%
+19.2%
-0.4%
-6.1%
-4,1%
-5.0%
-2.3%
-3.7%
-5.1%
-0.3%
n.a.
-23.8%
-21.3%
-
-23.9%
-21.5%
-
n.a.
1,408
991
416
5,601
3,967
1,627
790
711
77
2,198
1,702
493
-8.4%
-10.9%
+1.4%
-8.1%
-11.0%
+4.6%
-6.5%
-8.5%
70%
30%
71%
29%
90%
10%
77%
22%

Service Revenues
Trend YoY
Traditional
Outgoing voice
Incoming
voice
SMS
Innovative
wholesale
Service
530 531 536 501
52 56 57 59
132 139 134 135
328 342 390 404
58 69
72 83
76
126 95 185
1Q'14 2Q'14 3Q'14 4Q'14
Domestic Mobile
Quarterly Mobile Revenues Breakdown
726 727
1,264 1,284
1,138 1,189
handsets
Total
+1
+48
+2
-31
+51
+20
-32
+14
+11
+90
-6
+84 1,368
1,183
695
€ mln, QoQ
713
1,175
1,099
+13
+14
+12
+50
+39
+89
Traditional
Innovative
wholesale
Service
-14.9%
-13.3%
-7.1% -5,7%
+8,7% +5.5% -0.5%
+22.9%
+9,9%
+8,4%
+16,6%
+13.1%
-24,1%
-21,9%
-16,7% -16.1%

367 352 334 368
666 647 632 622
238 232 230 205
395 402 410 411
37 38 38 38
133 134 135 156
878 859 860 854
56 73 79 118
1Q'14 2Q'14 3Q'14 4Q14
Domestic Fixed
Traditional
Innovative
Wholesale
& others
Service
-7.4%
-8,6%
-7,2%
-5.3%
-10,4%
-13,1%
-10,1%
-7,5%
+0,1%
+1,8%
+3,0% +4.2%
Traditional
Innovative
Service
Outgoing voice
Access
Others
National, Int‟
wholesale +
Subs&others
VAS
ICT
Broadband
handsets
1,271 1,231 1,195
565 574 583
2,715 2,664 2,639
-40
+9
-51
-36
+9
-25
1,195
606
2,655
-
+23
+19
€ mln, QoQ
Quarterly Fixed Revenues Breakdown
-7,2% -7,9%
-9,3%
-8.1%
2,771 2,737 2,718-34 -19 2,773+55Total
Service Revenues
Trend YoY

-28
-20 -8 -17
-41 -34
-80
-2
-1
-5 -28 -5
-111 -107
-178 -197
-124
-92
+75
+16
-72
-36 -41
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Domestic Mobile KPIs
MNP Balance
2014
2013
Highlights
Clear signs of market stabilization
translated into:
better MNP balance+615k YTD
lower MNP volume  -4,5 mln overall MNP
transations in FY‟14 vs FY‟13
better churn rate 24%; -4.8pp YoY
Mobile CB Active CB
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
82% 82%
83% 84%
83%
84%
85% 85%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
„000
Cum.
+615 YoY
31,858 31,706 31,554 31,221 30,996 30,660 30,374 30,350
-18

761 736 711 684 655 625 597 568
5.258 5.182 5.131 5.130 5.111 5.054 5.020 4.961
965 1.014 1.045 1.084 1.122 1.155 1.164 1.161
1 1 4 15 45 103 151 231
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
965 1,015 1,050 1,100 1,167 1,259 1,315
6,984 6,933 6,892 6,915 6,933 6,939 6,932
1,392
6,921
18,9
19,1
19,2 19,2 19,2
19,6
20,0
20,1
+3.5% +3.5% +3.6%
+1.6% +1.8% +2.3%
+3.9%
+4.8%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
ARPU BB YoY
(201)
(222)
(183)
(163)
(182) (200)
(171) (176)
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
€/month
Domestic Fixed KPIs
Fixed Access
OLO
TI retail
Line Losses
YoY
BB ARPU
Flat ADSL
Total BB Fast
Total
Free ADSL
SI+20Mb
Fiber
BB Access
13.777 13.555 13.372 13.210 13.027 12.828 12.656 12.480
7.238 7.233 7.164 7.169 7.211 7.258 7.167 7.224
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
„000
21,016 20,788 20,536 20,378 20,238 20,085 19,82319,704
Total

+6,3%
-9.6%
-11.3%
-21.2%
+1.3%
-3.3%
+9,5%
-18,0%
-62,8%
+19,2%
-6.5%
-7.4%
-18.1%
+3.2%
+16,4%
-0.6%
-15.5%
-55,3%
wholesale(1)
Consumer+Business
services
outgoing voice
VAS
business received
handsets
(1) Including Visitors & other items
(2) Total Retail Service Revenues net of Incoming
voice
fees&other
-8.7%-5.1%Total
-11.6%-8.3%business generated(2)
1,442
75
1,367
1,181
1,136
615
521
45
186
576
39
4Q‟13
89
1279
1,094
504
537
52
185
487
18
1,368
1,042
4Q‟14 YoY FY‟14 YoY
Domestic Mobile Revenues Breakdown
Reported, € mln, %YoY

Sparkle group
Wholesale Domestic
Retail Service
Service Wireline 2,655 2,803 -5.3% -7.1%
258 245 +5.0% -0.2%
540 633 -14.7% -11.9%
1,800 1,873 -3.9% -6.6%
voice & access 1,073 1,173 -8.5% -10.5%
internet 417 400 +4.4% +2.2%
business data 287 286 +0.3% -2.1%
other 23 14 n.m. n.m.
elim. & other 60 53 n.m. n.m.
Total Wireline 2,773 2,935 -5,5% -6.7%
Products 118 132 -10.6% +7.8%
Domestic Fixed Revenues Breakdown
4Q‟14 4Q‟13 YoY FY‟14 YoY
Reported, € mln, %YoY

25507 24467
-3,174
+1,585
+893 -206 +508 +238
FY'13 OpFCF Cash Financial
Expenses/Financial
Accrual
Taxes & other
impacts
M&A Telecom Argentina
(discontinued)
Dividends / change
in equity
FY'14
FY14 Net Financial Position
26,807 26,651
-156
+1,629 -149D vs. 2013 -301 +575-153 -290
FX negative
impact license
1,311
Including 1.3 bln euro Mandatory Convertible Bond
& excluding 884 €Mln Cash out for Licences
25,507 24,467
Mandatory
Convertible Bond
Mandatory Convertible Bond
& Licences Cash Out
Brazilian
Licences
540 mln € TA Licences
344 mln €
€ mln
Piergiorgio Peluso
-1,040

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 2.633 €/mln (of which 687 €/mln on bonds)
- the impact on Financial Assets is equal to 1.263 €/mln.
Therefore, the Net Financial Indebtedness is adjusted by 1.370 €/mln.
Total Gross Debt net of Adjustment:
Euro 34.421 mln
Maturities and
Risk Management
Average m/l term maturity: 7,10 years
(bond only 7,85 years)
Fixed rate portion on gross debt approximately
66,3%
Around 41% of outstanding bonds (nominal amount)
is denominated in USD, GBP and YEN and is fully
hedged
Well-Diversified and Hedged Debt
€ mln
Gross debt 34,421
(of which 30 mln disc. Operations)
Financial assets (7,605)
of which Cash & CE and marketable securities (6,112)
Cash & Cash Equivalent (4,812)
Marketable securities (1,300)
Italian Government Securities (915)
Other (385)
Discontinued operations (165)
Net Financial Position 26,651
Cost of debt:
 5.4%
Marco Patuano - Piergiorgio Peluso

Investor Relations
Investor Meetings 44
Appendix

Investor Relations
Investor Meetings 45
Latest Consensus forecasts on Italian GDP
(% growth, as of February 2015) 2015 2016
Centro Europa Ricerche 0.8 1.1
Banca Nazionale del Lavoro 0.7 1.3
Prometeia 0.7 1.4
REF Ricerche 0.7 1.1
ABI 0.6 1.1
Credit Suisse 0.6 1.4
ING Financial Markets 0.6 1.3
UBS 0.5 1.0
Confindustria 0.5 1.1
HSBC 0.5 0.8
Econ Intelligence Unit 0.5 0.9
UniCredit 0.5 1.1
Barclays Capital 0.4 1.1
Goldman Sachs 0.4 0.9
Intesa Sanpaolo 0.4 1.0
Moody's Analytics 0.4 1.1
Citigroup 0.4 1.1
Oxford Economics 0.3 1.0
Bank of America - Merrill 0.1 0.6
Average 0.5 1.1
Government (Sep 14) 0.6 1.0
Bank of Italy (Jan 15) 0.4 1.2
EU Commission (Feb 15) 0.6 1.3
IMF (Jan 15) 0.4 0.8
OECD (Feb 15) 0.4 1.3
FORUM ECONOMICS
2017 CONSENSUS
1
(2015: 0.4
2016: 1)

Investor Relations
Investor Meetings
The Weight of Mobile BB-Only Households
% of households on total
F + M BB Households Penetration in Italy
• BB Household
Penetration in Italy is
roughly in line with
other main European
Countries, but with a
different Mix
20%
3%
4% 5%
8%
IT FR DE UK ES
71%
77%
87% 88%
73%
Fixed-BB
Households
Households
with only
Mobile BB
Fonte: dati Eurostat al 1Q 2014

Update Post 2015-2017 plan outline presentation

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