Telecom Italia Group - 1Q 2014 Results

1. MARCO PATUANO – PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q ’14 Results
Milan, May 13th 2014
Telecom Italia Group
1Q 2014 Results

2. 1MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Safe Harbour
These presentations contain statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These
statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of developments and changes
in 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 accounting policies adopted in the preparation of the Abbreviated Consolidated Financial Statements as of and for the three months ended 31 March 2014 have
been applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2013, to which reference can be made, except
for the new standards and interpretations adopted by the Telecom Italia Group which didn’t impact on the Abbreviated Consolidated Financial Statements as of and for
the three months ended 31 March 2014. Please note that the limited review on the Telecom Italia Abbreviated Consolidated Financial Statements at 31 March 2014 has
not yet been completed.
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 first quarter 2013) have been restated accordingly and therefore the
Sofora - Telecom Argentina group is no longer separately presented as a business unit.
Furthermore:
• starting from the first quarter 2014, Organic change in Revenues, EBITDA and EBIT are determined excluding, where applicable, only the effects of the change 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;
• effective as of and for the three months ended 31 March 2014, the results of the Olivetti group are included in our “Domestic” business unit mainly as result of its
commercial and business activities as well as the complementarity of its products and services with respect to the ones offered by Telecom Italia in the domestic
(Italian) market. In the past, the results of the Olivetti group were included in the “Olivetti” business unit;
as a result, the data for prior periods under comparison have been restated, accordingly.

3. 2MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Agenda
• TI 1Q’14 Results
• Progressing inTI’s new course
• Financial Update
• Take-Aways
• Appendix

4. 3MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Revenues
1Q’14 Reported
Telecom Italia 1Q’14 Results
€mln, %YoYEbitdaCapex
Group
Domestic
Brazil
Group
Domestic
Brazil
Group
Domestic
o/w innovative
Brazil
5,188
3,728
1,451
2,200
1,792
406
684
493
130
189
Organic(1)
-11.9%
-8.3%
-18.8%
-8.4%
-8.2%
-12.3%
-10.7%
-14.9%
+35%
+6.2%
-6.2%
-8.3%
-0.2%
-5.7%
-8.2%
+7.8%
-5.8%
-14.9%
+30.4%
-4.3%
-6.6%
-1.2%
-9.5%
net of new
SAC policy
Weight(2)€mln YoY YoY
72%
28%
81%
18%
72%
28%
(1) Starting from 2014, Organic performance includes only exchange rate variations and impacts from perimeter changes
(2) Including TI Media, other & elimination. Olivetti is now included in the Domestic perimeter
Ebitda-Capex
Group
Domestic
Brazil
1,516
1,299
217
-7.3%
-5.5%
-23.9%
86%
14%
-5.7%
-5.4%
-6.4%
n.a.
n.a.
n.a.
n.a.

5. 4MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
34
1Q'13 1Q'14
34
1Q'13 1Q'14
3,895
3,554
171
174
1Q'13 1Q'14
Domestic (1) Performance Dashboard
4,066
3,728-8.3%
Total Revenues
Ebitda - Capex
on
revenues 48.0% 48.1%
Reported data, €mln, %YoY
Capex
-8.8%
+1.9%
Handsets
Services
579
493SAC(2)
-9.5%
net of new
SAC policy
-14.9%
Ebitda
SAC(2)
1,953
1,792-8.2%
-6.6%
net of new
SAC policy
-10.1%
-10.5%
-9.1% -9.1%
-8.8%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Service RevenuesTrend
14.2% 13.2%
-14.9%
-19.1% -18.2%
-15.0%
-5.5%
1Q'13 1H'13 9M'13 FY'13 1Q'14
YoY
YoY
1) Including Olivetti in the Domestic Perimeter 2) SAC FY’13: 188 mln euro

6. 5MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
-19%
-19%
-16% -16% -16%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
FY’13 -17.3%
48 20
645
503
465
455
47
39
87
83
80
76
1Q'13 1Q'14
Domestic Mobile Revenues
Total Revenues Retail RevenuesTrend
business
generated
business
received
1,292
1,099
handsets
total 1,372
1,175
-22.0%
-14.4%
-5.7%
-14.9%
YoY
Reported data, €mln, %YoY
retail
service 1,205
1,017
wholesale
& others
total
service
-15.7%
-15.6%
-4.7%
1,159
978
-2.3%
-15.6
VAS
voice
fees&others -58.6%
-17%
-20%
-22% -22% -22%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
FY’13 -20.2%
voiceservice
-8%
-6%
-1%
+2%
-2%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
FY’13 -3.2%
VAS

7. 6MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
31.9 31.7 31.6 31.2 31.0
21%
28%
82% 83%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
-6%
+5%
+29%
-14% -14%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Customer Base
28.4%
29.2%
34.8%
29.1%
24.0%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Churn
mln, %
BB users
MNP: Market Volume &TIM balance
‘000, YoY
-396 -413
+72
-149
-57
+41%
+38%
+39%
-21%
-29%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
TIM balance Market Volume (YoY)
Calling CB
annualized
Domestic Mobile KPIs
Gross Adds
~9.0 mln
% YoY

8. 7MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
1,259 1,124
401
401
273
267
56
48
709
618
283
301
46
56
1Q'13 1Q'14
-7.5%
-7.9%
-7.3%
-8.0%
-7.3%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Domestic Fixed Revenues
Total Revenues
Reported data, €mln, %YoY
access&voice
internet
business data
other
retail service
domestic
wholesale
Sparkle
equipments
total service
total
elim. & adj.
1,989
-10.8%
flat
-2.3%
n.m.
-7.5%
-12.8%
+6.4%
-7.3%
+23.7%
-6.9%
1,840
2,930
2,715
2,976
2,771
Service RevenuesTrend
YoY
total
-6.2% -6.0%
-6.8%
-8.2%
-7.5%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
retail

9. 8MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
+0.4%
-3.2%
-2.5%
+0.2%
+4.6%
1Q'13 1H'13 9M'13 FY'13 1Q'14
13,777 13,555 13,372 13,210 13,027
7,238 7,233 7,164 7,169 7,211
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Domestic Fixed KPIs
Fixed Access
21,016 20,788 20,536
OLOTIretail
M/S 63.5% 63.4% 63.0%64.0%
20,378
Line LossesTrend
‘000
-201 -222
-183 -162 -183
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
20,238
62.5%
Highlights
QoQ
• TI’s customer base erosion due to different mix: stable
contraction ofTI Retail Calling accesses (-140k) and increasing
disconnections of Retail OLOs Calling inTI Access Base (carrier
selection and carrier preselection )
• Constant progression in Unified Communication Solutions
adoption in Business Segment: number of lines optimization per
site, increasing a more diversified ICT spending
ICT

10. 9MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
+50
+35
+50
+67
2Q'13 3Q'13 4Q'13 1Q'14
965 1,014 1,045 1,084 1,122
1 1 4 15
45
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
6,984
6,933
6,892 6,915 6,933
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Domestic Broadband KPIs
BB Access
13,812 13,805 13,753
CBTIretail
13,839
‘000
13,928BB market
TI BB ARPU
€/month 19.118.9 19.2
-36
-51 -41
+23 +18
Fast BB Access
Netadds
CBTIretailNetadds
965 1,015 1,050 1,100 1,167
‘000
QoQ
QoQ
+3.4%+3.5% +3.6%YoY
YoY Consumer +6.8%
19.2
+1.6%
+4.3%
19.2
+1.8%
+3.9%+6.6% +6.3%
SI & Alice 20 mega Fibre

11. 10MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
1,454 1,451
1Q'13 1Q'14
TIM Brasil Performance Dashboard
flat
Revenues Ebitda
on revenues 25.9% 28.0%
Capex Highlights
• Stable topline in a more difficult macro, competitive and regulatory
environment. Mobile service revenues grew by 4.9% YoY net of 25%
MTR cut in February
• In 1Q’14TIM maintains its market share (at 27.0% with 73.9mln
subscribers) and still leads total customer base growth (TIM +4% YoY)
• Very strong cost control lead to a remarkable 8% growth in EBITDA
with a very sound EBITDA Margin (at 28.0%)
• High commitment to Network Quality improvement: total Capex+30%
YoY in 1Q14 (13% of revenues) around 95% allocated to infrastructure
Organic data, €mln, %YoY
377 406
1Q'13 1Q'14
+7.8%
145
189
1Q'13 1Q'14
+30.4%
+4.9%
Mobile Service
Revenues
net of MTR

12. 11MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
TIM Brasil: Increasing Offering Attractiviness in Post-Paid
Control & Control Express
Liberty Express
Liberty +
[invoice]
Increase attractiveness for
customers with potential data
demand
Extend Express proposition to
Heavy users
Attract Heavy Users
3
1
2
Offers Objectives

13. 12MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Agenda
• TI 1Q’14 Results
• Progressing inTI’s new course
• Financial Update
• Take-Aways
• Appendix

14. 13MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
1Q'13 1Q'14
Innovation drives Commercial take-up & Efficiencies
Coverage - Municipalities
52
689
NGN
LTE
25
202
TI Main competitor
1Q'13 1Q'14
Total Domestic Capex
Network Capex
579
17% 26%
20% 33%
293
303
-14.9%
+3.5%
+9pp
+13pp
innovative
innovative
Capex Efficiency
493
network
€mln, %YoY
+42 -32
-29
-33
-34
-86
innovative traditional IT
commercial &
other subsidy Capex
Efficiency : -94 mln €

15. 14MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
“Smart” opens the gate to Convergence
Sound take-up rate1 Accretive on ARPU and KPIs3
1 week 2 week 3 week 4 week 5 week
Avg 15k/week
on-air TV fixed
mobile
new line
newline
CB
CB
-
+
+
++
 ARPU
• More than 50% of «TIM
Smart» activation are new
fixed clients
• ~70% of «TIM Smart»
activation are on existing CB
Option repricing ensured
commercial consistency after
promo phase
2
Unlimited mins
vs
fixed & mobile
10€/m
Mobile
voice
800 mins/m vs
fixed & mobile
10€/m
400 min/sms
& 2GB
10€/m
SIM
Plus
400 min/sms &
1GB 15€/m

16. 15MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Commercial Evolution: Sparked-up by Strategic Projects
MobileTowers
Rebranding
• Valorization of Infrastructure
• “TIM” as one single commercial
brand
Strategic Projects
Fixed
Ultra BB
Mobile
Ultra BB
• Maximise return on
investment
b
Convergent
offers
• Develop triple & quadruple
play offersa
c
d
Maximise return on investments
• Strong leadership in connectivity asTI is the unique operator in
Italy with a national footprint UBB Plan: NGN coverage of ~19%
of population as of March 2014
• Good Progression in fiber take-up rate and value recognition in
very-high «QoS»
• Strategic agreement with Sky is now closed: contents are a key
reason for accelerating trend in BB adoption
• Capitalizing on the rational approach for 3G: data reduction in
bundles supports our long term strategy
• Leverage on the leading position in 4G: best coverage, speed
and reliability
• Premium Content based Services
LTE is a unique opportunity to change both the market
approach and the pricing level
Fixed Ultra BB
Mobile Ultra BB

17. 16MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Expand Economic Leadership with Fibre
x
Positive
Commercial
take-up
Geomarketing strategy
started in April
TI and SKY: the leaders in
connectivity and video
content are now together
for an exclusive offer
Customer
satisfaction is
evident
43
1 2

18. 17MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
• Commercial partnership for Sky Online
(OTT SKY offer)
COMING SOON
TI & SKY: a strong Partnership
The Leaders in Connectivity
and Content are together with
a unique offer
• Complete Sky Offer onTelecom Italia IPTV
COMING SOON
• Availability via mobile of SkyTG24
&…more to come!
• Accessibility over mobile of SkyGO and
premium sport content with
«connectivity embedded”

19. 18MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Building new Value from a Rational Mobile Market
Entry level
data pack
additional GB additional GB additional GB
+€
+€€
+€€€
 price
 data
4G
pushes up
data
consuptionx
• Lever on «First Mover» advantage with a «Network Quality
Strategy»
• “Best technological available approach” moves customers on
4G. Data hungry segments will pay more for more data
September - December 2013
• After 2013 aggressive summer campaign, mobile Italian
market moved back to rationality on 3G: all the main
operators reduced volumes in the «entry level pricing»
offers
January - April 2014
• Further price recovery post Christmas Campaign and
launch of “SMART” convergent offer
from May 2014…
• Long-term sustainability approach - increasing value per
GB, through further reduction in 3G pack: data from
1GB/month to 0.5 GB/month
1
2
3
pricing
bundle
data into
bundle
MNP
volume
sep-dec 13 jan-apr14 from may14…
1 2 3
• Sound growth in 4G smartphone penetration together with a
good take-up rate of 4G options
• Around ~500k 4G Users @ the end of March; +25% vs Dec ‘13
Until now:
Repairing the Market
From now on :
leveraging on 4G competitive advantage
ARPU uplift on 4G

20. 19MARCO PATUANO
TELECOM ITALIA GROUP
1Q 2014 Results
Focus on LTE: Enhancing First-Mover Advantange
SmallScreenLargeScreen
% 4G
options on 4G
smarthone
% 4G
smartphone
on total CB
smarthone
Customer Base 4G vs 3G
Data ARPU
Data Usage
3G 4G
x3
x2.5
% 4G
options on
4G devices
% 4G
device on total
tablet/key base
16%
19%
22%
27%
dec '13 mar '14
15%
16%
8%
15%
dec '13 mar '14

21. 20PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Agenda
• TI 1Q’14 Results
• Progressing inTI’s new course
• Financial Update
• Take-Aways
• Appendix

22. 21PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
1Q14 Net Debt Evolution
Euro mln, Reported Data
+493
EBITDA
CAPEX
∆ WC & Others
Operating FCF
(2,200)
+684
+1,530
+14
∆ vs. 13
2012 YE
28,274
26,807
2013YE
Adjusted
(40)
(25)
(65)
Disposals/
Financial
Investments
+426
Cash Financial
Expenses/
Financial Accruals
(10)
+208
+198
Cash
Taxes/Other
Impacts
1Q13
28,767
27,529
1Q14
Adjusted
+78
(64)
+14
Operating
FCF
(49)
+198
+149
Net CF
from Disc.
Ops.
+423
+3
+722
+229
~ + 90m € Fistel payment in Brazil ~110m € EUR/AR$ FX
(1,238)

23. 22PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Focus on Working Capital
Severance
Indemnities,
Funds & Other
Net Other
Receivables/
Payables
Trade
ReceivablesInventories
∆OWC & Other
1Q14
-1,530
-27 -77
-1,065
-333 -28
4.8
4Q13 1Q14
3.7 Includes FISTEL payment
for ~320M€
1.4 0.7Capex
Trade
Payables
€ Bln
-1.1
∆OWC & Other
1Q13
-1,572
Euro mln, Reported Data
FY11 FY12 FY13
-0.4
+0.2
-0.3
€ mln
Delta Operating Working Capital (impact on 1Q14 Cash Flow)
Reported Opex+Capex evolution
Brazil Last 3 YE ∆OWC and Others

24. 23PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Progress on Domestic Opex Reduction
1,936
(50)2,113 (3)
(53)
1Q13 1Q14Commercial Industrial
& G&A
Volume
Driven
Euro mln, Reported Data
(177)
Personnel Costs
(72)
External Opex reduction
122m yoy net of COGs
Opex Reduction

25. 24PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
(1) € 31,760 mln is the nominal amount of outstanding medium-long term debt. Including Mandatory Convertible Bond (€ 1,300 mln), discontinued operations (€ 27 mln), IAS adjustments (€ 540 mln) and current financial
liabilities (€ 424 mln), the gross debt figure of € 34,051 mln is reached.
N.B. Debt maturities are net of € 2,151 mln (face value) of repurchased (of which € 1,144 mln in 2013 and € 599 mln in 2014) own bonds (of which € 1,936 mln related to bonds due within 2016).
Loans (of which long-term rent, financial and operating lease
payable € 1,239)
Drawn bank facilityBonds
11.7
5.2
6.5
Liquidity Margin Debt Maturities
Undrawn Portion
of Facility/Committed
Group Liquidity Position
(Ex. Disc. Ops)
Euro bln Euro mln (1)
Robust Liquidity Margin and Well-Distributed Debt Maturities
Fully Covered Beyond 2016
907
1,386
864
973
925
1,040
1,192
7,287
1,449
1,856
3,179
1,606
2,225
3,002
9,656
22,973
1,500
1,500
3,856
3,242
4,043
2,579
3,150
4,042
10,848 31,760
Within 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Beyond 2019 Total M/L Term
Debt

26. 25PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
TI Media Mux Project is moving on
65,4 Mbps 47 Mbps
> 800 Sites
95.3% population
Ca. 400 Sites
90.9% population
3 Channels 2 Channels
Total
capacity
Channels
• Leading independent Network Operator in
the Italian market with 5 operated digital
MUX
• Prime commercial offer, leveraging on
state-of-the-art technology and backbone
capacity
• First- tier customer portfolio
• Opex and Capex synergies enabled
• Pro-forma annual turnover ~€100 mln
• Healthy cash generation
• Advisors appointed
• Final agreement signed on April 9th
• Closing of the transaction subject to Italian Authority approval (expected by the end of June)
• Next activities will be focused on operations integration
• A market sounding process will be launched shortly, aimed at identifying investors interested in the Combined Entity

27. 26PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
BrazilTower deal: Process on track
Non-Binding Offers expected
by End of May
• Dynamic Brazilian tower market
maintains high attractiveness
• High level of interest shown toTIM
process, both from financial and
strategic investors
• Increasing mobile customers, data
usage boost, coverage targets and
technological evolution offer a
significant growth profile in terms of
towers and tenants
• TIM tower portfolio is one of the largest
in Brazil: 6.5k towers nationwide, over
40% located in cities with more than
500k inhabitants
• Current co-tenancy (1.6x) is above
Brazilian market average. Further
opportunities are opened by important
available space
• Only passive infrastructure elements in
the perimeter (towers, poles, shelters,
etc.) while the active transmission
equipment will remain ofTIM property
TIM tower
portfolio

28. 27PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Agenda
• TI 1Q’14 Results
• Progressing inTI’s new course
• Financial Update
• Take-Aways
• Appendix

29. 28PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Telecom ItaliaTargets
Group Domestic Brazil
Organic data
Revenues
Cagr ‘13-’16
Stable
Negative
Low Single Digit
Positive
Mid Single Digit
Ebitda
Cagr ‘13-’16
Stable
Negative
Low Single Digit
Positive
Mid Single Digit
Capex(1)
Cum. ‘14-’16
<14€bln
Net Debt Adj
/Ebitda 2016(2)
~ 2.1x(3)
Capex/Revenues
~ 18%
Capex/Revenues
~ 17%
(1) excluding spectrum
(2) reported EBITDA
(3) including announced equity strengthening
excluding impact from non-organic items and FX. Avg exchange rate: Reais/€ 2.99

30. 29MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Agenda
• TI 1Q’14 Results
• Progressing inTI’s new course
• Financial Update
• Take-Aways
• Appendix

31. 30MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
-14.8%
+4.3%
-15.6%
-17.3%
-12.8%
-18.8%
-3.2%
-62.1%
+5.9%
-20.2%
+3.0%
-14.4%
-4.7%
-15.0%
-15.6%
-15.6 %
-24.6%
-2.3%
-15.7%
-5.7%
-22.0%
-58.6%
1Q’13 1Q’14 YoY FY’13 YoY
1,372 1,175
87 83
1,285 1,092
1,205 1,017
1,159 978
693 523
465 455
47 39
80 76
645 503
48 20
Domestic Mobile Revenues Breakdown
total
Reported data, €mln, %YoY
wholesale(1)
Consumer+Business
services
outgoing voice
VAS
business received
handsets
business generated(2)
(1) Including Visitors
(2) Total Retail Service Revenues net of Incoming
voice
fees&other

32. 31MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Domestic Fixed Revenues Breakdown
Reported, €mln, %YoY
products
Service Wireline
Sparkle group
Wholesale Domestic
Retail Service
voice & access
internet
business data
other
elim. & other
1Q’13 1Q’14 YoY FY’13 YoY
46 56 +23.7% -10.9%
2,930 2,715 -7.3% -7.7%
283 301 +6.4% -9.2%
709 618 -12.8% -10.4%
1,989 1,840 -7.5% -6.8%
1,259 1,124 -10.8% -9.3%
401 401 -0.1% +0.8%
273 267 -2.3% -2.3%
56 48 n.m. n.m.
(52) (44) n.m. n.m.
Total Wireline 2,976 2,771 -6.9% -7.8%

33. 32MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
Customer Care: operating KPIs
+5%
+2%
market
dynamics
caringproduction
capacity
creditproduction
capacity
Front End
(call)
Back Office
(items)
Front End
(call)
Back Office
(items)
Headcount
«make»«buy»
1° Q. 2014
Contribution CS
on selling activities
Consumer
Enterprise
1° Q. 2014 managed issue
Consumer: 1,9 mln
Enterprise: 1,1 mln
Sollecit
64%
quality
(CSIcustomercare)
fixed
mobile
FTE
53%
10%
45%
20%
75%
60%
Access MNP BB ULL SI Cubo ready
59%
13%
41%
11%
Access MNP(Voice
Mobile)
BB ULL
7.47 7.54 7.64
7.04 7.00 7.05
1° Q. 2013 FY 2013 1° Q. 2014
Consumer Enterprise (SME)
8.25 8.29 8.32
7.28 7.41 7.42
1° Q. 2013 FY 2013 1° Q. 2014
Consumer Enterprise (SME)
+28%
+12%
1°Q.2014
3.9
4.5
1° Q. 2013 1° Q. 2014
+16%
10348
10169
1° Q. 2013 1° Q. 2014
-179
52%
54%
1° Q. 2013 1° Q. 2014
48%
53%
1° Q. 2013 1° Q. 2014
«in-house» incidence
Front End
Back Office
15.1
16.2+7%

34. 33MARCO PATUANO - PIERGIORGIO PELUSO
TELECOM ITALIA GROUP
1Q 2014 Results
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 2,198 €mln (of which 698 €mln on bonds)
- the impact on Financial Assets is equal to 917 €mln
Therefore, the Net Financial Indebtedness is adjusted by 1,281 €mln
Well-Diversified and Hedged Debt
Total Gross Debt net of Adjustment: Euro 34,051 mln
3.7% Op. Leases and long rent 1,257
5% Other 1,697
15% Banks & EIB 5,124
4.3% Bank Facilities 1,457
71.9% Bonds 24,490
 Gross debt (of which 27 mln disc. Operations) 34,051
 Financial assets (6,014)
of which Cash & CE and marketable securities (5,234)
 Cash & Cash Equivalent (3,945)
 Marketable securities (1,289)
 Italian Government Securities (1,006)
 Other (282)
 Discontinued operations (508)
Net Financial Position 27,529
Maturities and Risk Management
Cost of debt:
5.5%
 Average debt maturity: 7.04 years (bond only 7.90 years)
 Fixed rate portion on gross debt approximately 67.4%
 Around 37% of outstanding bonds (nominal amount) is
denominated in USD, GBP and YEN and is fully hedged
0.1% Discontinued operations 27
Euro mln