TIM Group - Sustainability Financing Framework

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December 9th, 2020
Sustainability Financing
Framework
TIM GROUP

2
Sustainability Financing Framework
Disclaimer
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.
This document is not intended to be and should not be construed as providing legal or financial advice. It does not constitute an offer or invitation to sell or any solicitation of
any offer to subscribe for or purchase or a recommendation regarding any securities, nothing contained herein shall form the basis of any contract or commitment
whatsoever and it has not been approved by any security regulatory authority.
The financial results of the TIM Group are prepared in accordance with 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 financial results for Q3 ‘20 and 9M ‘20 of the TIM Group are the same as those adopted
in the TIM Group Annual Audited Consolidated Financial Statements as of 31 December 2019, to which reference can be made, except for the amendments to the standards
issued by IASB and adopted starting from January 1, 2020. The financial results for Q3 ‘20 and 9M ‘20 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) and Equity Free Cash Flow. Moreover, following the adoption of IFRS 16, the TIM Group uses the following additional alternative performance indicators:
* EBITDA adjusted After Lease ("EBITDA-AL"), calculated by adjusting the Organic EBITDA, net of non-recurring items, of the amounts related to the accounting treatment
of lease contracts according to IFRS 16 (applied starting from 2019);
* Adjusted Net Financial Debt After Lease, calculated by excluding from the adjusted net financial debt the liabilities related to the accounting treatment of lease contracts
according to IFRS 16 (applied starting from 2019).
* Equity Free Cash Flow After Lease, calculated by excluding from the Equity Free Cash Flow the amounts related to lease payments.
Such alternative performance measures are unaudited.
TIM Group

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Agenda
TIM Group
Sustainability embedded
in our plan
Sustainability Financing
Framework
Financial Highlights &
Business Update
1 2 3
Giovanni Ronca
Chief Financial Officer
Carola Bardelli
Head of Investor Relations

4

5
We are a sustainable company, with a clear ESG vision and a plan to improve
TIM Group
(1) Analysis by NASDAQ on institutional investors in TIM at June 30th, 2020
▪ ESG embedded in core plan
▪ Carbon neutral by 2030
▪ +50% eco-efficiency and -70% indirect
emissions by 2025
▪ Transparent reporting since 1998 with a
long history of focus on sustainability and
social responsibility
▪ ~25% of institutional investors in TIM are
ESG1
▪ Tracking ESG improvements against the
plan
▪ Group Sustainability Report compliant
with the Global Reporting Initiative (GRI)
standard, comprehensive option
Targets
and Plan
Sustainability
today
Delivering
and
reporting
TIM elected to participate to the major sustainability indexes since 2003
2003Since 2004
2005
2012
2015
2017
2020
2018
REFINITIV:
confirmed top 25
worldwide
CDP - CLIMATE CHANGE:
classified “A-”, with high
level of transparency
World and Europe
Índice CDPR
Resiliência
Climática
TIM Brasil

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We rank 2nd telco worldwide in Sustainalytics ESG ranking
TIM Group
(1) Sustainalytics ESG risk rating summary report – Nov, 9 2020
(2) Sustainalytics Second Party Opinion report – Oct, 23 2020
Sustainalytics has classified TIM's risk score as LOW RISK
and ranking it 2 out of 192 in the telco sector 1
..Sustainalytics is of the opinion
that TIM demonstrates a strong
commitment to sustainability
through a focus on key
environmental and social areas
such as: (i) emission reduction, (ii)
energy efficiency, (iii)
environmental product research,
and (iv) digital education. TIM has
developed a comprehensive plan
with quantitative targets to fulfil its
environmental and social
commitments 2…
“
“
ESG rating
distribution
“The company is at low risk
of experiencing material
financial impacts from ESG
factors, due to its medium
exposure and strong
management of material
ESG issues. The company is
noted for its strong
corporate governance
performance, which is
reducing its overall risk.
Although the company has
a moderate level of
controversies, its favourable
risk assessment is primarily
due to its above average
policies and programmes.”

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We have taken action, we achieved results
First telecom operator to assess
environmental responsibility
Founding member of ETNO
Corporate Responsibility Charter
Founding member of Joint Audit
Cooperation (JAC)
Signatory of the United Nations
Global Compact in 2002
Certified(1)
14001 37001 50001
(1) ISO 50001 Certified for Purchasing function and 6 sites, 2019
TIM Group
E S G
We offer services and products for the
reduction of the environmental footprint
of citizens and enterprises, and:
▪ Reduced energy consumption ‘17-’19 by 4% (equal to
123 GWh) despite significant traffic volumes growth
(+17% from ‘18 to ‘19)
▪ Increased our eco-efficiency >50% to 13.5k bit/joule in
’19 from 8.9k in ‘17
▪ >30% of renewable energy in ‘19 from 8.5% in ‘18
▪ Launched “TIM Green” to reduce emissions
▪ Implemented environmental policy/guidelines
▪ Among lowest electromagnetic emissions in EU
Certifications:
▪ ISO 14001 - Environmental Management System
▪ ISO 500011 - Energy Management System
We operate under a state of the art
Corporate Governance system and
internal systems and procedures, and:
▪ Included ESG targets in management’s
remuneration
▪ Publish sustainability reporting since 1998
▪ State of the art corporate policies and
procedures: Anti Corruption Policy, Whistleblowing
Procedure, Suppliers Code of Conduct, Sustainable
Procurement Policy, Risk management policies,
organization and processes, Code of Conduct for
Premium Services, Protection of Minors and Code of
Conduct, Code of Ethics, Social and Health and
Safety Procedures, Human Rights Policy
▪ Sustainability Committee, reporting to CEO, and
organization
▪ Certifications: ISO37001 – Anticorruption
We constantly work for overcoming the
geographic digital divide, contributing
to social and digital inclusion, and:
▪ Ensure data security and protection
▪ Protect people from abuses over the Internet,
ensuring freedom of expression
▪ Top 10 companies in the Refinitiv Diversity and
Inclusion Index, 1st in Italy and 1st telco worldwide
▪ Run a large number of activities to promote digital
culture, provide aid and donation to the communities
we operate in (Digital Renaissance Operation,
Fondazione TIM, DonaConTIM, SMS solidale, TIM Tec)
▪ We invest in innovation that further improves our
customers’ wellness and sustainable behaviors
through the newest technologies: IoT, Cloud
Computing, Edge Computing, Smart Cities, Smart
Home, Security

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Our targets and how we pursue them will shape our journey towards an
even more sustainable future
for our INFRASTUCTURES for our CUSTOMERS for our COMPETENCE
▪ Increase digital inclusion supporting the Italian
“digital growth”
▪ “Do more with less” in Network, Data
Center, Building. That means:
o less energy consumption,
o green energy adoption,
o space reduction
o old tech decommissioning
▪ Support our customers growth trough services
that enable sustainable behaviours:
o Core telco service enabling smart-working
o IoT acts as key factor of economic development
and resilience
o Smart homes and smart cities to make mobility
more efficient and reduce consumption
o Green/eco materials and products as much as
circular economy based services to foster our
ethic stream
▪ Accelerate the need of digital services and
solutions by contrasting Digital divide:
This is the aim of “Operazione Risorgimento
digitale”
▪ Agile organization supported by space re-design
▪ Continuous program of training, job rotation and
wellbeing to contrast the aging of employees
TIM Group
The creation of long-term value for both our shareholders and all stakeholders is guided by UN SDGs

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Sustainability is embedded in our Industrial Plan 2020-22
TIM Group
Planned targetsHow we will deliverOur ambition
▪ Increasing efficiency and taking advantage of green energy
cost reduction
▪ Developing infrastructures and Data-Center to give more to
our customer with less impact from operations
▪ Developing new services that give our customers the
opportunity to hold a more sustainable behavior
▪ Launching green offering in TIM’s retail channels
▪ Having Customer Satisfaction Index in management’s MBO
▪ Keep promoting diversity
▪ Re-skilling, hiring and retaining talents with new capabilities
▪ Developing the digital education in Italy to support demand
for connectivity
Environment
We want to be green
Social
We believe that new
capabilities are a key factor to
maintain leadership
Governance
Innovation + Sustainability
means access to cheaper
financing and new revenue
streams
Eco-efficiency
Indirect emissions
Employees
engagement
Reskilled people
New VC fund size
Churn of young
employees
Carbon neutral by 2030
IoT and Security
services revenues
2025
+14 p.p.
2,000
€ 50m
<15%
+20%
+50%
-70%
2022
Green smartphone > 15%
Renewable energy
increase of weight on
total energy (%)
+5pp /yr
2024

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Our action plan is on track to reach planned targets
TIM Group
Planned targets
Employees engagement
Reskilled people
New VC fund size
Churn of young employees
IoT and Security services
revenues
+14 p.p.
2,000
€ 50m
<15%
+20%
2022
Green smartphone > 15%
Eco-efficiency
Indirect emissions
Carbon neutral by 2030
2025
+50%
-70%
Renewable energy increase of
weight on total energy (%) +5pp /yr
2024
E
S
G
Sparkle: first data center provider certified
in Greece for renewable energy
Data center transformation
3.2k physical servers decommissioned (25%)
Increased renewable energy
on track for achieving +5pp target
Network optimization
1k mobile sites modernized
Successful engagement survey
Score +16pp vs 2019 on 76% participation (vs 64%)
2,085 job rotations
(~5% of domestic employees)
Churn Millennials contained (<2%)
New venture capital fund created
by Tim Ventures with United Ventures, investing € 20m by YE
Launched «TIM Green»
Line of reconditioned devices
ICT business revenues increased
+18% YoY in Q3
Smart Working / Smart Building
>40k employees in Smart Working
Actions
2022
On track on all targets

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Sustainability Financing Framework at a glance
▪ 7 Green Eligible Categories
▪ 4 Social Eligible Categories
▪ TIM Framework is designed as an umbrella document allowing TIM to enter into various types of financing instruments including Bonds in public and private
format, Loans including but not limited to Term Loans, Project Finance Loans, and Revolving Credit Facilities (RCF)
▪ TIM Framework is aligned with the Green Loan Principles 2020 overseen by the Loan Market Association (LMA) and is aligned with the Green Bond Principles
2018 (GBP), the Social Bond Principles 2020 (SBP) and the Sustainability Bond Guidelines 2018 (SBG) overseen by the International Capital Markets Association
(ICMA):
Use of
Proceeds
▪ TIM Sustainability Steering Committee
will review the evaluation and the
selection of the projects1
Process for
Project
Evaluation
and Selection
▪ Managed on a portfolio basis by the
Treasury
▪ Look-back period of 2 calendar years
prior to the issuance
Management
of Proceeds
▪ Allocation and Impact reporting
available within one year of issuance
and provided until full allocation
Reporting
(1) This committee will meet at least once a year. It will be chaired by the CEO and composed of representatives of the CSR department, the Finance
department, and any other relevant Department who will approve the selection of Eligible Assets
provided a Second Party opinion confirming alignment to ICMA GBP / SBP and SBG as well LMA GLP
TIM Framework

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Use of Proceeds alignment with the UN SDGs
Green
Energy Efficiency
Network Transformation ✓ ✓ ✓
Network Optimization ✓ ✓
Innovation ✓ ✓ ✓
Data Centres ✓
Green Buildings ✓ ✓
Renewable Energy Renewable Energy ✓
Circular Economy Extending product life ✓
Social
Digital Inclusion
Deployment of optic fiber
in underserved areas
✓ ✓
Operazione Risorgimento
Digitale
✓ ✓ ✓
Response to health
crisis
New FTTC facilities ✓ ✓
Emergency support ✓ ✓
TIM Framework

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▪ FTTC coverage increased to 85% in 2020
▪ FTTH coverage planned to grow to 56% from 20% by 2025 with the
remaining areas already covered with FWA and satellite
▪ Puglia 100% UBB coverage by YE 2020
▪ Objective to switch all customers to UBB by 2025, with a mix of FTTC
(up to 60% more eco-efficient than ADSL) and FTTH (up to 20x more
eco-efficient than ADSL
▪ FiberCop is TIM/Fastweb co-investment vehicle participated by KKR
that will complete fibre roll out and switch to UBB by 2025
▪ 2020 dismissed 541k voice/ADSL ports and reused 10k FTTC
refurbished cabinets in less populated areas.
▪ Further interventions planned to increase energy efficiency and
sustainability of network infrastructures
Network Transformation: Fixed
TIM Framework
Our Infrastructures
We are investing in coverage expansion, customers’ switch to fiber and use of digital services, to
reduce their environment footprint and to increase our infrastructure energy efficiency
45% 53%
100%
2019 Q3 '20 2025
UBB customers
(% on total Broadband)
Increasing
coverage
Copper fiber
swap
Legacy
switch-off
and reuse
ESG Goals
Closing the
digital divide
gap
Increasing
eco-efficiency(1)
better
performance with
less energy
consumption
Promoting
Circular
economy
less CO2
emissions
UBB Coverage
Pillars Main drivers of our 2020-22 plan
~
(1) Eco-efficiency = throughput / energy consumption

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Network Transformation: Mobile
TIM Framework
Our Infrastructures
Mobile networks modernization and 5G roll-out enables energy savings. Mobile IoT services will
contribute to improve the environmental footprint of customers and communities
ESG Goals Pillars Main drivers of our 2020-22 plan
Coverage
▪ 2020: 10 cities (90% Milan)
▪ 2021: all major cities,
tourist areas and
industrial districts
▪ 2025: national coverage
5G
Mobile sites
modernization
5G roll-out
IoT services
deployment
Increasing
eco-efficiency
better
performance
with less energy
consumption
Improvement
of Customers
environmental
impact
less CO2
emissions
▪ New equipment enables energy savings (20% like for like)
▪ 1k mobile sites modernized in 2020. More to come in ‘21 and ’22
▪ 5G is up to 5x more eco-efficient than 4G technology
▪ 5G significantly increases data capacity and offers last generation
standards able to self regulate functionalities and consumption
▪ Launch of UV T-Growth fund to support technological projects, with
specific focus on 5G technology
▪ Development of IoT Services with an E2E approach to have a structural
impact on Italian digitalization and sustainability, leveraging on the
broader network coverage
▪ Future application fields: Urban Services, Automotive, Energy & Utilities, E-
Health, Smart Manufacturing and Smart Farm

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TIM Framework
Our Infrastructures
Data Centers
Leading data driven market in Italy, in partnership with Google Cloud, through a network of green data
centers that enable innovative solutions
2020
▪ Shut down 3 data centers, decommissioned 3.179 old servers (24% of total
capacity), reused 93 high end servers
▪ Sparkle: first data center provider certified in Greece for renewable energy
2020-2023 Plan
▪ Further interventions to improve Data Center energy efficiency
▪ Up to further 5.000 old equipment decommissioned
2020-2022 Plan
▪ Sustainable criteria in buying process, design and construction with 100%
renewable energy use by 2021
▪ Energy-efficiency measures (e.g. BEMS, evaporative cooling, smart grid) and
adoption/disclosure of performance based metrics
▪ External Certifications to set sustainable standards (LEED Gold)
▪ TIM and Google Cloud partnership to provide best in class, end to end Cloud
solution to Italian enterprises and public administration
▪ Reduction of Cloud customers energy consumption and emissions as new
Data Centers work on a large scale and with a dynamic allocation of resources
ESG Goals Pillars Main drivers of our 2020-22 plan
Modernization
and
decommissioning
Old Data Centers
Partnership
with Google
Cloud
Increasing
eco-efficiency
better
performance
with less energy
consumption
Improvement of
Customers
environmental
footprint
less CO2 emissions
Construction of
New Data
Centers
-4.0 GWh
-33.3 GWh
0
10
20
30
40
2019 2020
Data center-energy savings
226,28 GWh
222,24 GWh
188,92 GWh
Data center – PUE tgt

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Green Buildings
TIM Framework
Our Infrastructures
for
We are rethinking the needs of the employees in a smart
working perspective
Smart and sustainable buildings, people-centered and with an activity-based working approach
We continue to design workplaces with an increasing attention
to sustainability and personal well-being in line with UE
priorities for building renovation
✓ Shut down of 34 buildings and renovation
of 26 buildings in 6 cities
✓ Deployment of Agile organization and
desk sharing mode:
▪ 36k employees in smart working (79%
of total TIM Domestic population)
during Covid-19 allowing 163k tCO2 eq.
saving
▪ new work approach from 2021 (2 day
home + 3 in the office) to bring
expected 94k tC02 eq. saving
✓ Reuse of office furniture and of
refurbished IT equipment
✓ Electrical columns for charging installed
▪ Sustainable criteria in the restructuring of offices and in the buying
process of materials, products and furnishing
▪ Energy-efficiency measures and investments
▪ Adoption/disclosure of performance based metrics
▪ External Certifications to set sustainable standards
▪ Fully committed to use European funds to support investments in
quality building renovation
Main drivers of our 2020-22 planWhere we stand
C02 emissions
avoided for smart
working during
Covid
163k tCO2 eq.
Energy saving vs
2019
55GWh
Space saving vs
2019
280k m2

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Circular Economy
TIM Framework
Our Customers
TIM Green launched to offer a new line of eco-friendly products and low environmental impact
solutions to our retail and business clients
Jul
’20
Sep
’20
Dec
’20
Dec
’20
TIM Green launch
on digital channels
(tim.it)
Launched “Green” Sim
in Stores:
• 50% size reduction
60% recycled plastic
• packaging in
biodegradable material
• brochure on FSC paper
9.2 and 13.8 tonnes of
plastic saved annually
New range of eco-
compatible
accessories and
products
Main drivers of our 2020-22 plan
Technological
partnership and
new TIM Store in
“Green Pea”
Turin’s first
green retail park
▪ New solutions to promote
refurbished smartphones
(PAAS Product as a Service)
and Circularity for Phones
▪ Evolution of TIM stores
towards a new layout with
enhancement of TIM Green
products and services

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Operazione Risorgimento Digitale
TIM Framework
Our Competence
Turbocharging the digital transformation process in Italy by encouraging the adoption of new
technologies by an ever-widening pool of citizens
According to the DESI index1, Italy ranks on average in
connectivity, but has a very low score on “human capital”, for
the lower use of internet, lower digital technologies integration
and lower use of public digital services
DESI index1
Operazione Risorgimento Digitale
Italy has a «cultural» gap on digital TIM is contributing to bridge this gap
▪ Presence training for 6,000 individuals in the pre-Covid phase
▪ 60 Covid emergency charity initiative
▪ Managed 60,000 help desk tickets to support #lascuolacontinua (DAD2)
▪ 700,000 views of #Maestriditalia (digital activity talk)
▪ 20.000 migrants trained through micro-learning web app
▪ 18 masterclasses for professionals and SMEs on topics such as
Smartworking, Cybersecurity, Social media, The future of work,
E-commerce, Culture and digital tourism, Virtual reality and augmented
reality
(1) Source: EU, Digital Economy and Society Index (DESI) 2020 - Italy
(2) Distance teaching

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Response to health crisis
Support to hospitals,
prison and charitable
communities such as:
• 600 kits(2) to
prisons
• 3000 kits approx.
(device + SIM) to
hospitals
• +1,000 devices for
deaf patients to
around 75 hospitals
We doubled our
community
contribution(1) in the
first 9 months 2020
(€34 mln vs €17
mln in FY 2019)
Expanded the
network in the
“white areas”
activating over
10,000 cabinets
with FTTC
The majority of our
employees (around
36,000) have been
using Agile Work
allowing a save of
about 163K tCO2eq
Provide training
initiative to various
Institutions
(Carabinieri,
National
Confindustria, Civil
Protection)
TIM Framework
(1) Calculated according to the London Benchmarking Group (LBG) guidelines, BU domestic
(2) (device + SIM)
Our Customers
Our initiatives during the Covid-19 pandemic are helping our clients, especially those in the greatest
difficulty, cope with this emergency

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Transparent management of proceeds and reporting
▪ Tracking of the net proceeds with
a portfolio approach
▪ Sustainability register for green
eligible sub-portfolio and social
eligible sub-portfolio
▪ Full allocation within 24 months
following each bond issuance
▪ 2 years look back period
▪ Sustainability Steering
Committee will review, select
and verify the alignment
between eligible projects and the
Framework
▪ Committee chaired by the CEO
and composed of members from
the Company’s CSR and Finance
departments
▪ Sustainable Financing Report
annually until full allocation
▪ Allocation reporting with list of
financings per category and
unallocated proceeds
▪ Impact reporting, where feasible,
with specific reporting for
environmental impact of the
projects funded
Reporting
Management
of Proceeds
Project Evaluation
and Selection
TIM Group

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Business & Financial Highlights
Debt improved €4.2bn in less than 2 years
Financial and ESG guidance reiterated
Improving KPI and on track for revenues & EBITDA stabilization in
2021
Strategic initiatives on track
Government and Next Generation EU Funds increase confidence
in the telco sector’s perspectives
TIM Group

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Operations TIMe update: improving trends in Italy and Brazil
TIM Group
What happened in Q3 KPIs
▪ Further improvement in mobile CSI and NPS
▪ Early retirement / rejuvenation plan in progress
▪ Strong participation in Engagement survey (+12pp YoY)
Improved CSI,
engagement
and organization
CSI (1) +1% Q3 on top of +3% Q2 (2)
3.4k exits in FY (2.8k in ‘19)
Employee satisfaction score +16pp
Domestic KPIs
stabilising
▪ TIM best performer in MNP among big 3; best balance in 2 years
▪ Fix the fixed strategy delivering results
▪ On track to stop losing lines in fixed
MNP balance -43k
Retail UBB net adds +72% YoY
YTD line losses halved YoY
EFCF AL >€2.5bn
in 7 quarters ▪ Organic debt reduction ongoing
▪ EFCF strong growth. Guidance confirmed
Net Debt AL -€ 0.4bn QoQ,
-€ 1.2bn YTD
EFCF AL € 462m in Q3, +22% YoY
Brazil back to
growth Service revenues +1.3% YoY
EBITDA – CAPEX +8.5% YoY
▪ ARPU growth in all segments
▪ Best NPS hike since 2017, back to Mobile Top of Mind after 13 years
▪ Strong growth in cash generation continues
(1) Mobile CSI (Customer Satisfaction Index), Q3 ‘20 vs. Q2 ’20
(2) Q2 vs. Q4 2019

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TIM Group
Another quarter of strong organic cash generation: Equity FCF +22% YoY
(1) Excluding exchange rate fluctuations, non recurring items and change in consolidation area
(2) Adjusted Net Debt
Organic data (1), IFRS 16, € m
21,893
21,711
21,095
20,741
FY '19
Q1 '20
H1 '20
9M '20
2,856
3,511
Q3 '20
No solidarity in Q3 ‘20 imply 1.4pp YoY drag and 4.2pp swing in the
QoQ dynamic (3 days in Q3 ‘19 and 13 days in Q2 ’20)
Positive regulatory ruling in Q3 ’19 weighs 1.8pp
Net of discontinuities Q3 EBITDA YoY performance better than Q2
Q3 Equity Free Cash Flow AL € 462m (+22% YoY)
Q3 Net Debt improvement entirely organic (€110m spent on 5G
licence vs. € 18m in ’19)
Under IFRS16 debt reduction € 502m QoQ (+15% YoY),
EFCF € 688m in Q3 (+12% YoY)
1,317
1,574
Service
Revenues
EBITDA
After Lease
Net Debt
After Lease (2)
Equity FCF
After Lease
40.4%
-8.2%
-9.7%
+0.5%
D% YoY
-6.4%
+1.3%
+22%
-8.2%
FX &
one offs
2,919
3,559
Q2 '20
Q2 ‘20 Q3 ‘20
D% YoY
-8.2%
-3.4%
-9.1%Domestic
Brazil
1,309
1,563
Domestic
Brazil
Margin
-6.4%
-7.5%
-0.5%
40.9%
-1,152
+34% YoY
-354

26
Fix the fixed strategy delivering results and helping mobile
TIM Domestic
ICT Q3
revenues
Cloud
business
revenues
1.66
1.98
Q3 '19 Q3 '20
+19%
TIMVISION
customers
million
Convergent customers
churn -66% vs.
fixed customer base
9M Bad Debt -32% YoY
Direct payment churn -36% lower
Sales Channels Mix
9% 20%
2019 2020
Pull
+15pp
Push
Digital
Stores
Retail + wholesale UBB subs
+23% YoY in Q3
34% 41%
2019 2020
POP
Coverage(1)
Take-up
81% 85%(2)
Ultrabroadband
+18% YoY +20% YoY
New convergent &
adjacent services,
most extensive TV content
Increased UBB coverage &
penetration,
focus on white areas
Better sales channel mix,
increased direct payments
Push on digital services
beyond connectivity
Fixed Service Revenues
-10.1%
-8.5%
-5.4%
Q1 '20 Q2 Q3 Q4E
Organic, YoY change
Vouchers
from
Nov 9th
Voucher to stimulate
UBB penetration to
further support top
line improvement
Strategy Results/KPIs Financials
(1) Coverage on Technical Units, take-up UBB retail and wholesale lines on total UBB coverage,
(2) Equivalent to 90% coverage of families with a fixed line

27
TIM Group
Addressable cost base -11% YoY
17
422
74
265
286
191
226
292
Interconnection
Equipment
CoGS
Commercial
Industrial
G&A & IT
Labour
Other
OPEX
Organic data, IFRS 16, € m
1,772
Q3 ’20
-3.6% (-67)
(2)
(3)
(1) Net of deferred costs, on a cash view, the reduction reaches € 58m (-3.0% vs. -12.6% in Q2). Net of deferred costs, total OPEX amounts to € 1,888m in Q3
’20 and € 1,946m in Q3 ’19. On a cash view, YoY changes differ in CoGS (+60%), Commercial (-21%), Industrial (-3%), G&A (-14%) and Labour (-9%)
(2) Net of capitalized costs
(3) Includes other costs/provision and other income
YoY change (1)
-22%
-7%
-18%
-8%
+12%
-12%
+55%
▪ Labour -8% YoY for FTE reduction (-2.6k YoY). Fall would be
-12% net of ~€20m drag due to no solidarity in Q3 ‘20 vs. 3
days of solidarity in Q3 ’19
▪ G&A down thanks to reduction in indirect personnel, civil
building and IT costs
▪ Industrial: lower energy costs (-12% YoY thanks to lower
prices and consumption) and lower industrial building costs
▪ Commercial benefit from stopped CSP services, lower bad
debt and more digital sales
▪ CoGS increase related to IT revenue growth
▪ Equipment benefit from improved margins
▪ Interconnection YoY comparison affected by positive
regulatory ruling in Q3 ’19
Addressable costs
-11% YoY

28
TIM Group
TIM Brasil: positive topline and EBITDA performance despite COVID-19
FTTH coverage +60% YoY
3.1m HHs in 30 cities
The wider 4G coverage
89% availability
Massive MIMO rollout
127 cities already implemented
Conduct Adjustment Term
Solid delivery of commitments
Mobile TIM Live
(1) Normalized
(2) Excluding M2M
(3) Pro-forma excludes the effects of the adoption of IFRS 9, 15 and 16
Reported data, R$m
3,922 3,937
230 270
4,152 4,207+1.3%
+17.3%
+0.4%
ARPU +6.3% YoY
to 25.4 R$/month
Prepaid ARPU +9.4% YoY
Postpaid ARPU +4.5% YoY(2)
Revenues +29% YoY
CB +16.8% YoY to 627k
ARPU +9.1% YoY to 89.2 R$
37.5% 39.9%
36.5%
9M ’18 9M ’19 9M ’20
34.9%
9M ’17
31.7%
9M ’16
EBITDA margin (Pro-forma) (3)
Service Revenues recovery (+1.3% YoY), with positive
contributions from both mobile (pre & post paid) and fixed
Q3 ’19 Q3 ’20
MSR +0.4% YoY, with Prepaid
-2.0% (vs. -13.0% in Q2) and
Postpaid +1.2% (vs. -1.7% in Q2)
FSR +17.3% YoY driven by TIM Live
EBITDA(1) expansion supported by revenue recovery
and strict cost control, leading to the best margin in the market
2,042
2,063+1.0%
Q3 ’19 Q3 ’20
Beyond the core
New offers launched in Q3
>700k open accounts so far
>55% share of recharges on C6 app
9M’20 EBITDA margin: 47.2%
Advancing in IoT
with the connected car partnership
ESG
Listed in the TOP 10 best
ranked stocks in the new
B3 and S&P ESG index
Customer Satisfaction
Best NPS improvement
in all segments since 2017
Top of mind
Back to mobile Top of Mind after 13y
Infrastructure Development

29
Debt improved €4.2bn in less than 2 years
Additional € 1.8bn
from KKR transaction
expected in 2021
Group Net Debt After Lease
Adjusted, € bn
Q3 ’20
Pro-forma
2018 2019 Q1 ‘20
Inwit (dividend & ABB)
net of dividend on TIM ord.
and sav. shares 2nd wave
Inwit monetisation (1)
Q2 ‘20 Q3 ‘20
€ 2.3bn deleverage
through INWIT monetization
(€1.6bn in Q4(1))
€ 2.4bn organic debt
reduction since 2018
(1) Including €1.35bn from Ardian Consortium and 0.3bn from Canson Capital
(2) Adjusted Net Debt AL / organic EBITDA AL
3.2x
Net Debt / EBITDA AL (2)
3.0x
Net Debt /LTM EBITDA AL
TIM Group

30
Well Diversified and Hedged Debt (After Lease)
(1) Refers to positive MTM derivatives (accrued interests and exchange rate) for € 801m, financial receivables for lease for € 54m and other credits for € 65m
TIM Group
Average m/l term maturity:
6.2 years (bond 7.1 years only)
Fixed rate portion on medium-long term debt ~64%
Around 26% of outstanding bonds (nominal amount)
denominated in USD and GBP and fully hedged
1

31
0.04 1.7
1.3
0.7
0.2
0.6
0.1
4.5
6.7
0.6
3.1
2.4
3.3
2.0
8.1
19.5
3.9
10.6
2.2
4.3
3.1
3.4
2.6
8.2 24.0
Liquidity margin FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Beyond 2025 Total M/L Term
Debt
(1)
Liquidity margin - After Lease view
Cost of debt ~3.4%, flat QoQ, -0.2p.p. YoY
Liquidity Margin Debt Maturities
Bonds LoansUndrawn portions of committed bank linesCash & cash equivalent
Covered until 2023
(1) € 23,954m is the nominal amount of outstanding medium-long term debt. By adding the balance of IAS adjustments and reverse fair value valuations (€ 513m) and current financial liabilities
(€ 1,102m), the gross debt figure of € 25,569m is reached
TIM Group

32
Strategic initiatives update
TIM Group
FiberCop
Monetize
mobile towers,
retaining joint control
Develop
TIM Brasil
▪ TIM Brasil, VIVO and Claro have submitted a R$ 16.5 billion binding offer for Oi mobile business
▪ Auction planned by December 14th, 2020
▪ TIM has “stalking horse” position (i.e. right to top, approved by Administrative Court)
▪ Carve-out by year end
▪ Authorization process undergoing. Closing expected by Q1
▪ Operations started through Flash Fiber
▪ Cash-in in Q4 € 1.6 bn
▪ Total debt reduction € 2.3bn
Total debt reduction
€ 2.3bn (1)
AccessCo
▪ Preparatory work continues
▪ Discussions with Government and CDP ongoing
▪ Everything is ready on the technical side, all advisors appointed
(1) € 0.4bn from 4.3% share capital placed on April 23rd 2020, € 0.24bn from dividends (including extraordinary), € 1.35bn from Ardian
Consortium and € 0.3bn from Canson Capital
Cloud services
and data cloud
▪ Data center carve-out approved by BoD, NewCo will be operational in Q1 2021
▪ Deals with major corporations signed, experiencing excellent market acceptance
▪ Target 2024: €1bn revenues, €0.4bn EBITDA

33
TIM Group
(1) Transaction expected in 2021
- Figures @ Avg Exchange Rate Actual 5,71 REAIS/EUR
Guidance 2020-’22 reiterated
Organic
Service revenues
Low single digit
growth
Stable to Low
single digit growth
Mid single digit
growth
CAPEX
Eq FCF AL
Cumulated € 4.5 - 5.0 bn
To be enhanced through inorganic actions
presently not included
Adjusted
Net Debt AL
YoY growth rates,
IFRS 16 / After Lease
2020
Group Domestic Brasil
2021-’22 2020 2021-’22 2020 2021-’22
Organic
EBITDA AL
Low to Mid
single digit
growth
Low single digit
growth
EBITDA margin
≥ 40% in ‘22
Dividend
ordinary: floor of € 1 cent per share, aim to distribute 20-25% of yearly Equity FCF subject to deleverage execution
savings: €2.75 cents per share throughout 2020-2022
<€ 18bn by 2021,
stable in 2022
Mid single
digit decrease
Mid single
digit decrease
EBITDA-Capex
growth confirmed
~€ 2.7bn in 2020
~€ 2.9bn in 2021-22
Mid to High
single digit decrease
Mid to High
single digit decrease
Excluding proceeds
from FiberCop (1)

34
TIM Group
The Next Generation EU Fund is set to trigger an unprecedented acceleration
in environmentally sustainable investments and digital transition
5G acceleration
IoT and related technologies
(block chain, cybersecurity, AI and data
analytics)
Cloud and data services
development
Digital skills
training
Ultrabroadband
development and digital
divide closing
Digitalisation
innovation and
competitiveness
Green revolution
and ecological transition
Transport
infrastructure
Education,
training and research
Equality, social
and territorial inclusion
Health
Next
Generation
Fund pillars
Telcos
5 key areas
20%
direct allocation to
digital (>€ 40bn)
80%
other
projects
€ 750bn
€ 209bn
EU total
Italy’s allocation
(€ 81bn Grants)
Massive resources will directly and indirectly benefit the telco sector and TIM,
thanks to its central role in improving Italy’s sustainable growth
Timing: fund disbursement
expected from 2021
Digital and telco services will be an important component of
the other projects
1 2 3 4 5

35

36
We have a sustainability strategy with clear and ambitious
objectives
We have a long history of focus on sustainability and social
responsibility
We will gradually close the digital divide in Italy starting in
2020
We plan to be carbon neutral by 2030 and increase eco-
efficiency by 50% in 2025
Green Financing key for a sustainable future
Closing Remarks
TIM Group

37
For further questions please contact the IR team
(+39) 06 3688 1 // (+39) 02 8595 1
Investor_relations@telecomitalia.it
www.gruppotim.it
www.twitter.com/TIMNewsroom
www.slideshare.net/telecomitaliacorporate

TIM Group - Sustainability Financing Framework

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