ATTACHM ENTS TO THE PRESS RELEASE - telecomitalia.com · Telecom Ita (millions of o Repayment Telecom Ita Telecom Ita Telecom Ita (1) Net of 157 million euros re (2) Net of bonds

ATTACHM

ALTERNAT

TIM GROU

TIM GROU

TIM GROU

TIM GROU

TIM GROU

TIM GROU

TIM GROU

TIM GROU

DOMES

BRAZIL

TIM GROU

DOMESTIC

TIM GROU

TIM GROUCONSOLID

TIM S.p.A.

TIM S.p.A.

TIM S.p.A.

TIM S.p.A.

TIM S.p.A.

TIM S.p.A.INCOME S

ADOPTION

IFRS 16 (L

MENTS TO T

TIVE PERFOR

UP - SEPARAT

UP - CONSOLID

UP - CONSOLI

UP - CONSOLI

UP - NET FINA

UP – NET OPE

UP – HIGHLIG

UP - INFORMA

TIC................

.....................

UP - RECONCI

C - RECONCIL

UP - DEBT STR

UP - EFFECTSDATED INCOM

- SEPARATE

- STATEMEN

- STATEMEN

- STATEMEN

- NET FINAN

- EFFECTS OSTATEMENTS

N OF THE NEW

LEASES) .......

THE PRESS

RMANCE MEA

TE CONSOLID

DATED STATE

DATED STAT

DATED STAT

ANCIAL DEBT

ERATING FRE

GHTS ..............

ATION BY OPE

......................

......................

ILIATION BET

LIATION BETW

RUCTURE, BO

S OF NON-RECME STATEME

E INCOME STA

NTS OF COMP

NTS OF FINAN

NTS OF CASH

CIAL DEBT ...

OF NON-RECU .....................

W IFRS 9 AND

......................

RELEASE

ASURES ........

DATED INCOM

EMENTS OF C

TEMENTS OF

TEMENTS OF

T .....................

EE CASH FLOW

......................

ERATING SEG

......................

......................

TWEEN REPO

WEEN REPOR

OND ISSUES

CURRING EVEENTS ..............

ATEMENTS ..

PREHENSIVE

NCIAL POSITI

FLOWS .......

......................

URRING EVEN......................

D IFRS 15 ST

......................

1

......................

ME STATEME

COMPREHEN

FINANCIAL P

CASH FLOWS

......................

W ..................

......................

GMENTS .......

......................

......................

ORTED DATA

RTED DATA A

AND EXPIRI

ENTS AND TR......................

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E INCOME .....

ION ...............

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NTS AND TRA......................

TANDARDS ...

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ENTS ..............

NSIVE INCOM

POSITION ......

S ...................

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AND ORGAN

AND ORGANIC

NG BONDS ...

RANSACTION......................

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ANSACTIONS......................

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IC DATA .......

C DATA .........

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NS ON EACH I......................

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E SEPARATE ................... 1

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SEPARATE ................... 2

................... 2

................... 3

. 2 

. 4 

. 5 

. 6 

. 8 

10 

11 

12 

13 

13 

14 

15 

16 

17 

19 

20 

21 

22 

24 

26 

27 

28 

36 

ALTERN

In this presperformancerelated to th(annual and The alternat

• EBITDA:presentathe GrouThese m

Profit (loss)

+ F

- F

+/- O

+/- S

EBIT - Opera

+/- Im

+/- L

+ D

EBITDA - Op

assets (1) “Expenses (2) Line item in

Organic EBITDA aTIM belieunderstathis metthe reco

EBITDA whole anmargin mand EBITanalystsfiscal yea

Net FinaobligatioIn this pcalculateIn order carrying resulting

NATIVE P

s release, in ae measures arehe TIM Group an

interim), should

tive performanc

: this financial ations (to analyup (as a whole a

measures are cal

before tax from c

Finance expenses

Finance income

Other expenses (in

Share of losses (p

ating profit (loss)

mpairment losses

Losses (gains) on

Depreciation and a

perating profit (lo

(income) from investn Group consolidated

change in Revand EBIT, exclueves that the pranding of the othod of presentinciliation betwe

margin and EBnd at Business measure the opT, respectively. and investors) ar with those of

ancial Debt: TIMons. It is represepress release are the Net Finanto better repreamount”) is al

g from the fair v

PERFORM

addition to thee presented for nd the Parent Cd, however, not

ce measures use

measure is useysts and investoand at the Businlculated as follo

continuing opera

ncome) from inves

rofits) of associat

s (reversals) on no

disposals of non-c

amortization

oss) before depre

tments” for TIM S.p.Ad financial statement

venues, EBITDAding, where appresentation of t

operating perforing informationeen the “accoun

BIT margin: TIM Unit level) and

perating performSuch indicatorsin order to illus

f the previous fi

M believes thatented by Gross Fre included twocial Debt of thesent the actuallso shown the

value measurem

MANCE M

e conventional purposes of a

Company TIM St be considered

ed are described

ed by TIM as aors). It representness Unit level) ows:

ations

stments (1)

tes and joint ventu

on-current assets

current assets

eciation and amo

A. ts only.

A and EBIT: thplicable, the effthe organic charmance of the G is also used in nting or reporte

believes that ththe Parent Com

mance of an ens are used by TItrate the resultscal years.

t the Net FinanFinancial Debt leo tables showin Group and Parl change in Net “Adjusted net f

ment of derivativ

2

MEASURES

financial perfobetter underst

S.p.A.. Such meas a substitute

d below:

a financial targts a useful unitand of the Pare

ures accounted fo

ortization, capital

hese measuresfects of the chanange in RevenueGroup (as a whpresentations t

ed” data and the

hese margins rempany to generntity by analyzinIM in internal prts from operatio

ncial Debt repreess Cash and Ca

ng the amountsrent Company r Financial Debtfinancial debt”,ves and related

S

ormance measanding of the t

easures, which afor those requi

et in internal pt of measuremeent Company TI

or using the equit

gains (losses) an

express changnge in the scopees, EBITDA and hole and at the to analysts ande “organic” one

epresent some rate profits fromng the percentaresentations (bu

ons also through

esents an accurash Equivalentss taken from thespectively. , in addition to , which exclude

d financial liabilit

sures establishetrend of operatare presented inred by IFRS.

presentations (bent for assessinM S.p.A. in addi

y method(2)

nd impairment re

ges (amount ane of consolidatioEBIT allows forBusiness Unit investors. In th

es.

useful indicatorm its revenues. Iage of revenuesusiness plans) ah the compariso

rate indicator os and other Finahe statement o

the usual meases effects that aties/assets.

ed by IFRS, cetions and the fin the periodica

business plans)ng the operatingition to EBIT.

eversals (losses)

nd/or percentaon and exchangr a more compllevel) and the

his press release

r of the ability oIn fact, EBITDA

s that are conveand in external on of the operat

of its ability to mancial Assets. of financial posi

sure (named “Nare purely acco

ertain alternatinancial conditiol financial repor

) and in externg performance

on non-current

age) in Revenuege differences. lete and effectiParent Compane, is also provide

of the Group (asmargin and EB

erted into EBITDpresentations (ting results of t

meet its financ

ition and used

Net financial deounting in natu

ve on rts

nal of

es,

ve ny; ed

s a BIT DA (to he

ial

to

ebt ure

Net financia

+ N

+ Cu

+ Fi

A) G

+ N

+ Cu

+ Fi

B) Fi

C=(A - B) N

D) R

E=(C + D) Ad

l debt is calcula

on-current financ

urrent financial lia

inancial liabilities

ross Financial De

on-current financ

urrent financial as

inancial assets in

inancial Assets

et Financial Deb

eversal of fair va

djusted Net Fina

ated as follows:

cial liabilities

abilities

directly associate

ebt

cial assets

ssets

cluded in Discont

t carrying amoun

alue measuremen

ncial Debt

ed with Discontinu

tinued operations

nt

nt of derivatives a

3

ued operations/N

s/Non-current ass

and related finan

Non-current assets

sets held for sale

cial liabilities/as

s held for sale

ssets

The reclassiStatements same as thoSuch statemSeparate FinThe accountConsolidatedprinciples ap15 standardsTo enable thfinancial posapplied (IAS To such extStatements related TIM C

TIM GR (millions of eu

Revenues

Other income

Total operatin

Acquisition of

Employee ben

Other operatin

Change in inve

Internally gene

Operating proamortization, reversals (loss

Depreciation a

Gains (losses)

Impairment re

Operating pro

Share of profitaccounted for

Other income

Finance incom

Finance expen

Profit (loss) be

Income tax ex

Profit (loss) fr

Profit (loss) froassets held fo

Profit (loss) fo

Attributable to

Owners of

Non-contro

fied Separate of Cash Flows se included in t

ments, as well anancial Statemeting policies and Financial Stapplied starting frs”. he year-on-yeasition figures an39, IAS 18, IAS 1

tent, please nofor the year en

Consolidated an

ROUP - SE

uros)

ng revenues and

goods and servic

nefits expenses

ng expenses

entories

erated assets

ofit (loss) before dcapital gains (lo

ses) on non-curre

and amortization

) on disposals of n

eversals (losses) o

ofit (loss) (EBIT)

ts (losses) of asso using the equity

(expenses) from

me

nses

efore tax from co

pense

rom continuing o

om Discontinued or sale

or the year

o:

the Parent

olling interests

Income Statemas well as the

the Report of Ops the Net Finan

ents for the yeand consolidatioatements at Derom January 1,

r comparison ond “comparable11, and relative

ote that the aunded Decembend Separate Fin

EPARATE C

other income

es

depreciation andosses) and impairent assets (EBITD

non-current asset

on non-current ass

ociates and joint vmethod

investments

ontinuing operati

perations

operations/Non-c

ments, StatemeNet Financial Dperations of 201ncial Debt are inr ended Decemn principles haecember 31, 202018 whose eff

f the economic” income statemInterpretations

udit work by or 31, 2018 as wancial Stateme

CONSOLID

ment

DA)

s

sets

ventures

ions

current

4

ents of CompreDebt of the TIM 18 TIM Annual Fn any case cons

mber 31, 2018. ave been applie017, to which fects are shown

c and financial ment figures, ps). our independenwell as the cheents have not ye

DATED IN

2018

c

18,940

341

19,281

(8,186)

(3,105)

(1,259)

102

570

7,403

(4,255)

(1)

(2,586)

561

(1)

11

1,056

(2,404)

(777)

(375)

(1,152)

−

(1,152)

(1,411)

259

ehensive IncomGroup and the

Financial Reportsistent with tho

ed on a basis reference shou

n in the followin

performance forepared in acco

nt auditors on ck of consistenet been complet

COME STA

2018

comparable

(a)

19,109

341

19,450

(8,089)

(3,084)

(1,236)

102

570

7,713

(4,399)

(1)

(2,586)

727

(1)

10

1,047

(2,388)

(605)

(433)

(1,038)

−

(1,038)

(1,298)

260

me, Statementse Parent TIM S.pt. se included in t

consistent withuld be made, eg chapter “Ado

or 2018, this prerdance with the

the TIM Consocy of the 2018 ted.

ATEMENT

2017

(b) a

19,828

523

20,351

(8,388)

(3,626)

(1,208)

35

626

7,790

(4,473)

11

(37)

3,291

(1)

(18)

1,808

(3,303)

1,777

(490)

1,287

−

1,287

1,121

166

s of Financial p.A, herewith p

the TIM Group C

h those adopteexcept for the ption of the new

ess release shoe previous acco

olidated and Se8 Report on Ope

TS

Change

(a-b)

amount

(719)

(182)

(901)

299

542

(28)

67

(56)

(77)

74

(12)

(2,549)

(2,564)

−

28

(761)

915

(2,382)

57

(2,325)

−

(2,325)

(2,419)

94

Position and thresented, are th

Consolidated an

ed in the Annunew accountin

w IFRS 9 and IFR

ws “comparablounting standar

eparate Financerations with th

%

(3.6)

(34.8)

(4.4)

3.6

14.9

(2.3)

−

(8.9)

(1.0)

1.7

−

−

(77.9)

−

−

(42.1)

27.7

−

11.6

−

−

−

−

56.6

he he

nd

ual ng RS

le” ds

ial he

TIM GRIn accordancStatements Consolidated

(millions of eur

Profit (loss) for

Other componeIncome

Other componeConsolidated I

Financial asseincome:

Profit (loss) from

Income tax effe

Remeasureme

Actuarial gains

Income tax effe

Share of other ventures accou

Profit (loss)

Income tax effe

Total other comSeparate Cons

Other componeConsolidated I

Financial asseincome (*):

Profit (loss) from

Loss (profit) tra

Income tax effe

Hedging instru

Profit (loss) from

Loss (profit) tra

Income tax effe

Exchange diffe

Profit (loss) on

Loss (profit) onConsolidated In

Income tax effe

Share of other ventures accou

Profit (loss)

Loss (profit) tra

Income tax effe

Total other comSeparate Cons

Total other comComprehensiv

Total compreh

Attributable to:

Owners of t

Non-control

(*)For the year

ROUP - COce with IAS 1 (Pof Comprehen

d Income Statem

ros)

r the year

ents of the Consol

ents that will not bIncome Statement

ets measured at fa

m fair value adjust

ect

ents of employee d

(losses)

ect

comprehensive inunted for using the

ect

mponents that wilsolidated Income S

ents that will be reIncome Statement

ets measured at fa

m fair value adjust

ansferred to Separa

ect

uments:

m fair value adjust

ansferred to Separa

ect

erences on transla

translating foreign

translating foreignncome Statement

ect

comprehensive inunted for using the

ansferred to Separa

ect

mponents that wilsolidated Income S

mponents of the Ce Income

ensive income (los

the Parent

lling interests

of 2017 also includ

ONSOLIDAPresentation of

nsive Income, iments, and all n

lidated Statement

be reclassified subt

air value through o

tments

defined benefit pla

ncome (loss) of asse equity method:

l not be reclassifieStatement

eclassified subseqt

air value through o

tments

ate Consolidated In

tments

ate Consolidated In

ating foreign opera

n operations

n operations transf

ncome (loss) of asse equity method:

ate Consolidated In

l be reclassified sStatement

Consolidated State

ss) for the year

ding “Available-fo

ATED STATf Financial Statncluding the Pnon-owner chan

t of Comprehensiv

bsequently to Sep

ther comprehensi

ans (IAS19):

sociates and joint

ed subsequently to

quently to Separat

ther comprehensi

ncome Statement

ncome Statement

ations:

ferred to Separate

sociates and joint

ncome Statement

ubsequently to

ement of

or-Sale financial a

5

TEMENTStements) here bProfit (loss) for nges in equity.

(

ve

parate

ive

(

t

(

o (e=b+c+

te

ive

(

(

t

(k=f+g+h

(m=e+

(a+

assets”.

S OF COMPbelow are prese

the year, as s

2

(a) (1

(b)

(c)

(d)

+d)

(f)

(g)

(h)

(i)

+i)

+k)

m) (1

(1

PREHENSIented the Consshown in the S

2018

,152)

(5)

−

(5)

19

(5)

14

−

−

−

9

(14)

(4)

2

(16)

362

(336)

(7)

19

(554)

−

−

(554)

−

−

−

−

(551)

(542)

,694)

,784)

90

IVE INCOMsolidated Separate

2017

1,287

−

−

−

10

(1)

9

−

−

−

9

63

(62)

2

3

(854)

826

(3)

(31)

(830)

19

−

(811)

−

−

−

−

(839)

(830)

457

527

(70)

ME

TIM GR

(millions of eur

Assets

Non-current a

Intangible ass

Goodwill

Intangible ass

Tangible asse

Property, plan

Assets held un

Other non-cur

Investments inusing the equi

Other investm

Non-current fi

Miscellaneous

Deferred tax a

Total Non-cur

Current asset

Inventories

Trade and misassets

Current incom

Current financ

Securities oand other c

Cash and c

Current asset

Discontinued sale

Total Current

Total Assets

ROUP - CO

ros)

assets

sets

sets with a finite u

ets

t and equipment

nder finance lease

rrent assets

n associates and jity method

ments

nancial assets

s receivables and

assets

rent assets

ts

scellaneous receiv

me tax receivables

cial assets

other than investmcurrent financial a

cash equivalents

ts sub-total

operations /Non

assets

ONSOLIDA

useful life

owned

es

joint ventures acc

other non-curren

vables and other

s

ments, financial rassets

n-current assets h

ATED STAT

counted for

nt assets

current

receivables

held for

6

TEMENTS

12/

(a)

(b)

(a+b)

S OF FINAN

/31/2018

(a)

26,769

8,889

35,658

14,251

1,895

16,146

16

49

1,594

2,291

1,136

5,086

56,890

389

4,706

251

1,466

1,917

3,383

8,729

−

8,729

65,619

NCIAL POS

12/31/2017

(b)

29,462

7,192

36,654

14,216

2,331

16,547

17

51

1,768

2,422

993

5,251

58,452

290

4,959

77

1,430

3,575

5,005

10,331

−

10,331

68,783

SITION

Change

(a-b)

(2,693)

1,697

(996)

35

(436)

(401)

(1)

(2)

(174)

(131)

143

(165)

(1,562)

99

(253)

174

36

(1,658)

(1,622)

(1,602)

−

(1,602)

(3,164)

(millions of eur

Equity and Lia

Equity

Equity attribut

Non-controllin

Total Equity

Non-current li

Non-current fi

Employee ben

Deferred tax li

Provisions

Miscellaneous

Total Non-cur

Current liabili

Current financ

Trade and misliabilities

Current incom

Current liabili

Liabilities direoperations/N

Total Current

Total Liabilitie

Total Equity a

ros)

abilities

table to owners of

g interests

iabilities

nancial liabilities

nefits

iabilities

s payables and ot

rent liabilities

ities

cial liabilities

scellaneous payab

me tax payables

ities sub-total

ectly associated on-current asset

Liabilities

es

and liabilities

f the Parent

ther non-current li

bles and other cu

with Discontinues held for sale

abilities

rrent

ed

(f=

7

12/

(c)

(d)

(e)

=d+e)

(c+f)

/31/2018

(a)

19,528

2,219

21,747

25,059

1,567

192

876

3,297

30,991

5,913

6,901

67

12,881

−

12,881

43,872

65,619

12/31/2017

(b)

21,557

2,226

23,783

28,108

1,736

265

825

1,678

32,612

4,756

7,520

112

12,388

−

12,388

45,000

68,783

Change

(a-b)

(2,029)

(7)

(2,036)

(3,049)

(169)

(73)

51

1,619

(1,621)

1,157

(619)

(45)

493

−

493

(1,128)

(3,164)

TIM GR (millions of eur

Cash flows fro

Profit (loss) fro

Adjustments f

Depreci

Impairminvestm

Net cha

Losses investm

Share ousing th

Change

Change

Changeconstru

Change

Net cha

Net chaassets/

Cash flows fro

Cash flows fro

P

P

Total pu

Ca

Total pu

Capital

Acquisitacquire

Acquisit

Changehedging

Proceedbusines

Proceedcurrent

Cash flows fro

Cash flows fro

Change

Proceed

Repaym

Change

Share c

Dividen

Change

Cash flows fro

Cash flows frofor sale

Aggregate ca

Net cash and

Net foreign ex

Net cash and

ROUP - CO

ros)

om operating act

om continuing ope

or:

iation and amortiz

ment losses (reverments)

ange in deferred ta

(gains) realized oments)

of losses (profits) ohe equity method

e in provisions for

e in inventories

e in trade receivabction contracts

e in trade payables

ange in current inc

ange in miscellane/liabilities

om (used in) oper

om investing acti

Purchase of intang

Purchase of tangib

urchase of intangi

Change in amountssets

urchase of intangi

grants received

tion of control of cd

tions/disposals of

e in financial receig and non-hedging

ds from sale that sses, net of cash d

ds from sale/repaassets

om (used in) inve

om financing act

e in current financ

ds from non-curre

ments of non-curre

es in hedging and

capital proceeds/r

ds paid

es in ownership int

om (used in) fina

om (used in) Disc

ash flows

cash equivalents

xchange difference

cash equivalents

ONSOLIDA

tivities:

erations

zation

rsals) on non-curr

ax assets and liab

n disposals of no

of associates and

employee benefit

bles and net amou

s

come tax receivab

eous receivables/

rating activities

ivities:

gible assets

ble assets

ible and tangible

ts due for purchas

ible and tangible

companies or oth

f other investmen

vables and other g derivatives unde

result in a loss of disposed of

ayments of intang

esting activities

tivities:

cial liabilities and o

ent financial liabili

ent financial liabil

non-hedging deriv

reimbursements (

terests in consoli

ncing activities

continued operat

s at beginning of

es on net cash an

s at end of the ye

ATED STAT

ent assets (includ

bilities

n-current assets (

d joint ventures ac

ts

unts due from cus

bles/payables

/payables and oth

assets on an accr

ses of intangible a

assets on a cash

er businesses, ne

nts

financial assets (er financial assets

control of subsid

ible, tangible and

other

ties (including cu

ities (including cu

vatives

(including subsidi

dated subsidiarie

ions/Non-current

f the year:

nd cash equivalen

ear:

8

TEMENTS

ding

(including

ccounted for

stomers on

her

rual basis

and tangible

basis

et of cash

(excluding s)

diaries or other

d other non-

rrent portion)

urrent portion)

aries)

es

t assets held

nts

S OF CASH

(a)

(b)

(c)

(d)

(e=a+b+c+d)

(f)

(g)

(h=e+f+g)

H FLOWS

2018

(1,152)

4,255

2,589

(195)

1

1

(208)

(99)

(49)

(163)

(210)

(178)

4,592

(3,647)

(2,831)

(6,478)

1,947

(4,531)

108

−

(3)

96

−

16

(4,314)

394

2,546

(4,426)

(110)

22

(256)

−

(1,830)

−

(1,552)

3,246

(63)

1,631

2017

1,287

4,473

50

(147)

(11)

1

437

(30)

379

(605)

(515)

80

5,399

(2,292)

(3,477)

(5,769)

455

(5,314)

82

−

(4)

466

−

30

(4,740)

(1,188)

2,630

(3,426)

997

16

(235)

(4)

(1,210)

−

(551)

3,952

(155)

3,246

Additional C

(millions of eur

Income taxes

Interest expen

Interest incom

Dividends rece

Analysis of

(millions of eur

Net cash and

Cash and c

Bank overd

Cash and cassets held

Bank overdcurrent ass

Net cash and

Cash and c

Bank overd

Cash and cassets held

Bank overdcurrent ass

Cash Flow info

ros)

(paid) received

nse paid

me received

eived

Net Cash and

ros)

cash equivalents

cash equivalents -

drafts repayable o

cash equivalents -d for sale

drafts repayable osets held for sale

cash equivalents

cash equivalents -

drafts repayable o

cash equivalents -d for sale

drafts repayable osets held for sale

rmation

Cash Equivale

s at beginning of

- from continuing

on demand – from

- from Discontinu

on demand – from

s at end of the ye

- from continuing

on demand – from

- from Discontinu

on demand – from

nts

f the year:

operations

m continuing oper

ed operations/No

m Discontinued op

ear:

operations

m continuing oper

ued operations/No

m Discontinued op

9

rations

on-current

perations/Non-

rations

on-current

perations/Non-

2018

(739)

(1,978)

871

2

2018

3,575

(329)

−

−

3,246

1,917

(286)

−

−

1,631

2017

(1,100)

(2,899)

1,636

1

2017

3,964

(12)

−

−

3,952

3,575

(329)

−

−

3,246

TIM GR (millions of eur

Non-current fi

Bonds

Amounts due t

Finance lease

Current financ

Bonds

Amounts due t

Finance lease

Financial liabioperations/No

Total Gross fin

Non-current fi

Securities othe

Financial rece

Current financ

Securities othe

Financial rece

Cash and cash

Financial asseassets held fo

Total financia

Net financial

Reversal of fafinancial liabil

Adjusted Net

Breakdown as

Total adjusted

Total adjusted(*) of which cur

Bonds

Amounts due

Finance lease

ROUP - NE

ros)

inancial liabilitie

to banks, other fi

liabilities

cial liabilities (*)

to banks, other fi

liabilities

lities directly assoon-current assets

nancial debt

inancial assets

er than investmen

eivables and other

cial assets

er than investmen

eivables and other

h equivalents

ets relating to Discor sale

al assets

debt carrying am

ir value measuremlities/assets

Financial Debt

s follows:

d gross financial

d financial assets

rrent portion of m

to banks, other fi

e liabilities

ET FINANC

es

nancial payables

nancial payables

ociated with Discoheld for sale

nts

r non-current fina

nts

r current financial

continued operat

mount

ment of derivative

debt

s

medium/long-term

inancial payables

CIAL DEBT

and liabilities

and liabilities

ontinued

ncial assets

l assets

ions/Non-current

es and related

m debt:

and liabilities

10

T

12/331/2018

(a)

18,579

4,740

1,740

25,059

2,918

2,787

208

5,913

−

30,972

−

(1,594)

(1,594)

(1,126)

(340)

(1,917)

(3,383)

−

(4,977)

25,995

(725)

25,270

29,432

(4,162)

2,918

1,477

208

12/31/2017

(b)

19,981

5,878

2,249

28,108

2,221

2,354

181

4,756

−

32,864

−

(1,768)

(1,768)

(993)

(437)

(3,575)

(5,005)

−

(6,773)

26,091

(783)

25,308

31,149

(5,841)

2,221

1,371

181

Change

(a-b

(1,402

(1,138

(509

(3,049

697

433

27

1,157

−

(1,892

−

174

174

(133

97

1,658

1,622

−

1,796

(96

58

(38

(1,717

1,679

697

106

27

e

b)

2)

8)

9)

9)

7

3

7

7

−

2)

−

4

4

3)

7

8

2

−

6

6)

8

8)

7)

9

7

6

7

TIM GR (millions of eur

EBITDA

Capital expend

Investments fo

Change in net

Change in

Change in customers

Change in

Changes of

Other chan

Change in pro

Change in ope

Net operating

Of which Operlicenses acqui

% of Revenues

(*) Includes th

ROUP – NE

ros)

ditures on an acc

or mobile licenses

t operating workin

inventories

trade receivables on construction c

trade payables (*

f mobile licenses

nges in operating

visions for emplo

erating provisions

g free cash flow

rating Free Cash Fisition / spectrum

s

e change in trade

ET OPERA

rual basis

s acquisition / sp

ng capital:

s and net amountscontracts

*)

acquisition payab

receivables/paya

yee benefits

and Other chang

Flow related to thm

e payables for amo

ATING FRE

ectrum

s due from

ble / spectrum

ables

ges

e mobile

ounts due to fixed

11

EE CASH F

201

7,40

(4,00

(2,39

1,19

(9

(4

(15

1,88

(39

(20

9

2,0

(51

11

d assets suppliers.

FLOW

18

03

09)

99)

94

99)

49)

50)

86

94)

08)

96

77

13)

1.0

.

C

2017

7,790

(5,071)

(630)

(126)

(30)

379

40

(257)

(258)

437

96

2,496

(887)

12.6 (

Change

(387)

1,062

(1,769)

1,320

(69)

(428)

(190)

2,143

(136)

(645)

−

(419)

374

(1.6) pp

TIM GR

(millions of eur

Revenues

EBITDA

EBITDA

Organi

EBIT before

Goodw

EBIT

EBIT M

EBIT M

Profit (loss) Owners of th

Capital Expe

Adjusted Ne

(millions of eur

Revenues

EBITDA

EBITDA M

Organic

EBIT before

Goodwill

EBIT

EBIT Mar

Organic

Profit (loss) owners of th

(1) Details

ROUP – HI

ros)

A Margin

ic EBITDA Marg

goodwill impa

will impairment

Margin

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for the year athe Parent

enditures & sp

et Financial De

ros)

Margin

EBITDA Margin

goodwill impa

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rgin

EBIT Margin

for the period he Parent

are provided u

GHLIGHT

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t loss

co

ttributable to

ectrum

ebt

n

irment loss

ss

attributable to

nder “Alternativ

S

(1)

(1)

(1)

4r

(1)

(1)

o

ve Performance

12

2018

c

18,940

7,403

39.1%

39.1%

3,151

(2,590)

561

3.0%

3.0%

(1,411)

6,408

12/31/201

25,270

rd Quarter 4r

2018

co

4,863

1,625

33.4%

33.4%

534

(590)

(56)

(1.2)%

(1.2)%

(543)

e Measures”

2018

omparable

(a)

19,109

7,713

40.4%

40.4%

3,317

(2,590)

727

3.8%

3.8%

(1,298)

6,558

18 12/

rd Quarter 4r

2018

omparable

(a)

4,892

1,683

34.4%

34.4%

555

(590)

(35)

(0.7)%

(0.7)%

(528)

2017

(b) (

19,828

7,790

39.3%

39.4%

3,291

−

3,291

16.6% (12

16.8% (13

1,121

5,701

/31/2017

25,308

d Quarter

2017

(b)

5,149

1,577

30.6%

30.3%

457

-

457

8.9% (9

8.6% (9

88

% Change

Orga

(a-b)

(3.6)

(1.0)

1.1 pp

1.0 pp

0,8

(77.9) (

2.8) pp

3.0) pp

-

15.0

Change Amoun

(38)

Change %

Orga

(a-b)

(5.0)

6.7

3.8pp

4.1pp

21.4

-

(9.6)pp

(9.3)pp

−

anic

0.1

2.6

(77.3)

nt

anic

(2.5)

10.9

-

TIM G

DOME

(millions o

Revenu

EBITDA

EBITDA

EBIT

EBIT ma

Headco

(millions o

Revenu

EBITDA

EBITDA

EBIT

EBIT Ma

Core Dom

(millions

Revenue

Consu

Busin

Whole

Other

EBITDA

EBITDA m

EBIT

EBIT mar

Headcou

GROUP - I

ESTIC

of euros)

es

margin

argin

ount at year end

of euros)

es

Margin

argin

mestic

of euros)

s

umer

ess

esale

margin

rgin

unt at year end (n

INFORMA

d (number)

umber)

ATION BY O

4t

OPERATIN

2018

15,031

5,955

39.6

16

0.1

48,200

th Quarter2018

3,849

1,216

31.6

(235)

(6.1)

13

NG SEGME

2018

comparable

(a)

15,185

6,221

41.0

177

1.2

4th Quarter2018

comparable

(a)

3,874

1,263

32.6

(216)

(5.6)

comp

1

4

ENTS

2017

(b)

15,354

6,171

40.2

2,772

18.1

49,851

4th Quarter2017

(b)

4,042

1,116

27.6

265

6.6

2018

parable

14,161

7,573

4,721

1,787

80

6,127

43.3

335

2.4

47,455

amount

(169)

50

(2,595)

(1,651)

amount

(168)

147

(481)

2017

14,249

7,737

4,656

1,690

166

6,029

42.3

2,736

19.2

49,095

Change (a - b)

%

(1.1)

0.8

0.8 pp

(93.6)

(16.9) pp

(3.3)

Change (a-b)

%

(4.2)

13.2

5.0 pp

−

(12.2) pp

Cha

amount

(88)

(164)

65

97

(86)

98

(2,401)

(1,640)

% organic

(1.0

0.9

0.8 pp

(93.6

(16.9) pp

% organic

(4.2)

13.1

5.0 pp

−

(12.2) pp

nge

%

(0.6

(2.1

1.

5.

(51.8

1.

1.0 p

(87.8

(16.8) p

(3.3

)

9

p

)

p

6)

1)

.4

.8

8)

.6

pp

8)

pp

3)

Internati

(millions

Revenue

of which

EBITDA

EBITDA m

EBIT

EBIT mar

Headcou

The Interwas allocwritten d

BRAZ

Revenu

EBITDA

EBITDA

EBIT

EBIT ma

Headco

Revenu

EBITDA

EBITDA

EBIT

EBIT ma

onal Wholesal

of euros)

s

third party

margin

rgin

unt at year end (n

national Wholecated on the CGown for an amo

ZIL

es

margin

argin

ount at year end

es

margin

argin

le

umber)

esale Cash GeneGU. In the 2018 ount of 140 mill

d (number)

erating Unit conconsolidated fi

lion euros.

2018

3,943

1,467

37.2

564

14.3

4th Quarte

201

1,025

417

40.5

186

18.1

20

compara

1,2

1,0

1

(14

(11

7

nsists of the cominancial statem

(millions of euros)

8 2018

comparable

(a)

3 3,959

1,511

2 38.2

4 569

3 14.4

(millions of euros

er 4th Quarter

8 2018

comparable

(a)

5 1,030

7 427

5 41.4

6 188

1 18.2

14

018

able

272

084

111

8.7

144)

1.3)

745

mpanies of the

ments, following

***

2017

(b)

4,502

1,635

36.3

535

11.9

s)

4th Quarter 4t

2017

(b)

1,113

465

41.3

195

17.1

2017

1,349

1,152

154

11.4

37

2.7

756

Telecom Italia g the impairmen

(millions of B

2018

comp

16,981 17

6,316 6

37.2

2,428 2

14.3

9,658

(millions of

th Quarter 4th

2018

com

4,457

1,807

40.5

807

18.1

amount

(77)

(68)

(43)

−

(181)

−

(11)

Sparkle group; nt test, the valu

razilian reais)

2018 20

parable

(c)

7,050 16,2

6,508 5,8

38.2 36

2,449 1,9

14.4 11

9,5

Brazilian reais)

Quarter 4th Qu

2018 2

parable

(c)

4,479 4,

1,856 1,

41.4 4

813

18.2 1

Change

%

(5.7)

(5.9)

(27.9)

(2.7) pp

(14.0) pp

(1.5)

part of the TIMue of the goodw

017 C

amount

(d) (c-d)

234 816

894 614

6.3

931 518

1.9

508 150

uarter C

2017

a

(d) (c-d)

,257 22

,758 9

41.3

729 8

17.1

% organ

(4.7

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(14.0) p

M group's goodwwill allocated w

Change

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(c-d)/d

6 5.0

4 10.4

1.9pp

8 26.8

2.5pp

0 1.6

Change

amount

(c-d)/d

22 5.2

98 5.6

0.1 pp

84 11.5

1.1 pp

ic

7)

7)

5)

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will as

TIM GR

EBITDA – re

(millions of eu

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Adoption new

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Foreign curren

Changes in the

ORGANIC EBI

of which non-r

Foreign currenIncome/(Expe

ORGANIC EBI

EBIT – reco

(millions of eu

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Changes in the

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of which non-r

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ORGANIC EBI

ROUP - RE

econciliation of

uros)

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accounting princ

EBITDA on the sa

ncy financial state

e scope of consol

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recurring Income/

ncy translation efenses)

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nciliation of or

uros)

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accounting princ

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e scope of consol

T

recurring Income/

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f organic data

iples effect

ame accounting b

ements translatio

lidation

/(Expenses)

ffect on Non-recur

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iples effect

e accounting bas

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lidation

/(Expenses)

ffect on Non-recur

n-recurring items

ATION BET

basis

n effect

rring

ms

is

n effect

rring

15

TWEEN R

2018

7,403

310

7,713

7,713

(408)

8,121

2018

561

166

727

727

(2,998)

3,725

EPORTED

2017

a

7,790

(269)

−

7,521

(883)

−

8,404

2017

a

3,291

(88)

−

3,203

(913)

1

4,115

DATA AN

Change

mount %

(77)

269

−

192

475

−

(283)

Change

mount %

(2,564)

88

−

(2,476)

(2,085)

(1)

(390)

ND ORGAN

%

(1.0)

2.6

(3.4)

%

(77.9)

(77.3)

(9.5)

NIC DATA

DOMES

EBITDA – re

(millions of eu

REPORTED EB

Effect of adop

COMPARABLE

Foreign curren

Changes in the

ORGANIC EBI

of which non-r

ORGANIC EBIcomponent

EBIT – reco

(millions of eu

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COMPARABLE

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Changes in the

ORGANIC EBI

of which non-r

ORGANIC EBI

STIC - REC

econciliation of

uros)

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ption of new accou

E EBITDA – on th

ncy financial state

e scope of consol

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recurring income/

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nciliation of or

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ption of new accou

E EBIT – on the s

ncy financial state

e scope of consol

T

recurring income/

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CONCILIAT

f organic data

unting standards

he same account

ements translatio

lidation

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the non-recurrin

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unting standards

same accounting

ements translatio

lidation

/(expenses)

non-recurring com

TION BETW

ing basis

n effect

g

g basis

n effect

mponent

16

WEEN RE

2018

5,955

266

6,221

−

−

6,221

(408)

6,629

2018

16

161

177

−

−

177

(2,998)

3,175

EPORTED D

2017

a

−

−

6,171

(3)

−

6,168

(882)

7,050

2017

a

−

−

2,772

(1)

−

2,771

(912)

3,683

DATA AND

Change

mount %

50

3

−

53

474

(421)

Change

mount %

(2,595)

1

−

(2,594)

(2,086)

(508)

D ORGAN

%

0.8

0.9

(6.0)

%

(93.6)

(93.6)

(13.8)

IC DATA

TIM GRevolving In the table (billions of e

Revolving C

Revolving C

Revolving C

Total

On Januarand replac16, 2023, c

As at Decethe amoun

Bonds The follow

(millions of o

New issues

Telecom Ita

(millions of o

Repayment

Telecom Ita

Telecom Ita

Telecom Ita(1) Net of

(2) Net of

(3) Net of

With respeDecemberDecember On Januarprice 99.43forthcomin The nominmonths asand uncon

832 m

664 m

950 m

720 mi

ROUP - DCredit Facilitiee below are sho

euros)

redit Facility – du

redit Facility – du

redit Facility – du

ry 16, 2018 the tced by a new sycurrently unused

ember 31, 2018 nt of 250 million

wing tables show

original currency)

s

lia S.p.A. 750 mil

original currency)

ts

lia S.p.A. 593 mil

lia Capital S.A. 67

lia S.p.A. 582 milf 157 million euros rep

f bonds repurchased b

f 168 million euros rep

ect to the Teler 31, 2018, the ar 31, 2017 (204 m

ry 11, 2019 TIM 36%, redempting debt maturit

nal amount of res of December 3nditionally guara

illion euros, due

illion euros (equ

illion euros (equ

illion euros, due

DEBT STRUes and term loaown the commi

ue May 2019

ue March 2020

ue January 2023

two syndicatedyndicated Revod.

TIM has bilatern euros, fully dra

w the bond evol

lion euros 2.875%

lion euros 4.750%

77 million of USD

lion euros 6.125%purchased by TIM S.p

by TIM S.p.A. (323 mil

purchased by TIM S.p

com Italia S.p.Aamount was 20million euros).

S.p.A. issued aon price 100%ties.

epayment, net 31, 2018 issued anteed by TIM S

e January 29, 20

uivalent to 760 U

uivalent to 850

e January 21, 20

UCTURE, Bns tted credit lines

Revolving Credolving Credit Fac

ral Term Loans awn down.

ution occurred

% due 1/28/2026

% (1)

6.999% (2)

% (3)

.A. in 2015.

lion of USD) on July 20

.A. in 2015.

A. 2002-2022 bo03 million euros

a 1,250 million e. The issue is

of the Group’s bby TIM S.p.A., T

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USD million), du

GBP million), du

020.

17

BOND ISS

s available as of

12/31/2

Committed

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-

5.0

5.0

dit Facility existincility for the am

for the amoun

in the year 2018

6

0, 2015.

onds, reserved s (nominal amo

euros bond, mapart of the pr

bonds buyback,Telecom Italia F166 million euro

ue June 18, 201

ue June 24, 201

UES AND

f December 31,

018

Utilized

-

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-

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ng at Decembemount of 5 billio

t of 1,475 millio

8:

Currency Am

Euro

Currency Am

Euro

USD

Euro

for subscriptioount), with a 1 m

aturing on Aprirocess intended

, related to the Finance S.A. andos with the follow

9;

9;

EXPIRING

2018:

12/3

Committed

4.0

3.0

7.0

r 31, 2017 were on euros and ex

on euros and Ho

mount

750

mount Repa

593

677

582 1

n by employeemillion euros re

l 11, 2024, coupd to optimize a

bonds expiring d Telecom Italiawing detail:

G BONDS

31/2017

d Util

0

0

-

0

closed in advaxpiring on Janu

ot Money loans

Issue date

6/28/2018

ayment date

5/25/2018

6/4/2018

12/14/2018

es of the Groupeduction respect

pon 4.000%, isand refinance

in the followinga Capital S.A. (f

ized

-

-

-

-

nce uary

for

, at t to

sue the

g 18 fully

The bondEBITDA/Intother thanare not coguaranteeItalia FinanSince thesand the U.these sam(“negativeWith refer2018, the tdirect risk aEIB loans ncovenant:

in the outsideprovidchangdemanoutside

in the which,from Tless th

EIB loans, the loans a

“Inclus(and inrestrictwill hafinancequiva

“Netw(in anythe cotransfeor ame

TIM S.p.A. which wouThe loan cassets as cof the Comthe same c In the Loaelements tdiscretion,shares andcontract. Furthermoimplemententail, upocommitme In the docgenerally rthe usual o We finally above-des

(1)

The case o

ds issued by tterest, etc.) or c

n the insolvencyovered by speces, except for thnce S.A. and Tee bonds have b.S.A.), the terms

me markets, ince pledges”). rence to the loatotal nominal aand 550 millionnot secured by b

event the come the Group, ored for), it shall es to be madend the advancee the Group com

loan of 500 mil, for all the durTIM S.p.A., and han the 35% (th

both secured bat direct risk, ne

sion clause”, acn the loans at dtions of the sal

ave the right to ial capacity, th

alent provision in

work Event”, accy case more thaontrolling stakeerred, TIM shall endment of the

loan contracts uld oblige the Cocontracts contacollateral for loa

mpany unless spcontent are also

n contracts andto prove that e the possible cd the cancellati

ore, the outstant mergers, dem

on request of thent amounts.

cumentation orespect certain other covenants

underline that,scribed debt pos

of change in control w

the TIM Groupclauses that woy of the TIM Grocific guaranteeshe full and uncolecom Italia Cap

been placed prins which regulateluding, for exa

ans received byamount of outsn euros secured.bank guarantee

mpany becomer sells, disposesimmediately inf

e to the loan coe repayment of mpromise the P

llion euros signeration of the loexcept in case irty-five per cen

by bank or appreed to apply the

cording to whicdirect risk signede of goods) whrequest, at its fe providing of n favor of the E

cording to whichan half in quan

e of the compimmediately in

e loan contract o

do not containompany to repa

ain the usual otans (negative plpecific conditiono found in the e

d in the Bonds,vent of change

constitution of on of the comm

nding loans contmergers or transf

e Lender, the ea

f the loans grafinancial ratios

s, under pain of

, as of Decembesition, has in any

would involve the repa

p do not contould involve theoup(1). Furtherms nor are thereonditional guarapital S.A.. ncipally with inse the bonds aremple, commitm

y TIM S.p.A. frotanding loans a. es for a nomina

es the target ofs or transfers aform the EIB whontract, or, onlthe loan (shoul

Project executio

ed on Decembean, the total fithat indebtedn

nt) of the Group

roved parties gue following cove

ch in the event Td in 2014 and 20ich are not prefair opinion, in cguarantees or IB;

h, against the dntitative terms) any in which t

nform EIB, whicor an alternativ

n financial coveay the outstandher types of coledges), the comns exist (e.g. theexport credit loa

TIM must prove in control and

guarantees or mitment in abse

tain a general cfer of business, arly redemption

anted to certas (e.g. capitalizaf a request for th

er 31, 2018, no cy way been bre

yment in advance of t

18

tain financial e early automatmore, the repaye commitmentsantees provided

stitutional invese in line with maments not to u

m the Europeaamounted to 1,

l amount equal

f a merger, dessets or businehich shall have ly for certain lold the merger,

on or cause a pre

er 14, 2015 TIM nancial indebteess is entirely a

p total financial

uarantees for aenants:

TIM commits to015, also more sent or are stricase those variathe modificatio

disposal of the ein favor of not the network o

ch shall have the solution.

enants (e.g. ratiding loan if the covenants, includmmitment not te sale takes placan agreement.

vide communic the applicable the repaymen

ence of a differe

commitment byinvolving entiti

n of the drawn a

ain companies ation ratios, ratihe early repaym

covenant, negaeached or violat

the convertible bond

covenants (e.gtic redemption yment of the bos provided relatd by TIM S.p.A.

stors in major warket practice fose the compan

an Investment B,350 million eur

l to 800 million

emerger or coness segments (e

the right to askoan contracts, demerger or coejudice to EIB in

enter into a conedness of the cand irrevocably indebtedness.

total nominal

keep in other lostringent clausecter than thoseations shall havon of the loan

entire fixed netcontrolled third

r a substantiale option of requ

ios such as Debcovenants are nding the commito change the bce at fair marke

ation in case ofconsequences t in advance oent agreement

y TIM, whose brees outside the Gamounts and/o

of the Tim Braios for servicing

ment of the loan

tive pledge claued.

of TIM S.p.A., as des

g. ratios such of the bonds in

onds and the pative to the assufor the bonds i

world capital maor similar transany’s assets as c

Bank (“EIB”), asros, of which 80

euros need to a

tribution of a except in certaik for guaranteesthe EIB shall h

ontribution of a n its capacity as

ntractual agreemcompanies of th

guaranteed by

amount of 550

oan contracts fies, for example,e granted to theve negative concontract in ord

work or of a sud parties or in cl part of it hauiring the provis

bt/EBITDA, EBITnot observed. tment not to u

business purpost value). Covena

f change in con– among which

of the issued am– are precisely

each is an evenGroup. Such ever the cancellatio

asil group, the g debt and debtn.

use or other cla

cribed hereafter.

as Debt/EBITn relation to eveayment of interumption of futissued by Telec

arkets (Euromaractions effectedcollateral for lo

s at December 00 million euros

apply the follow

business segmin cases, express to be provided

have the optionbusiness segm

s creditor);

ment accordinghe Group differ

y TIM S.p.A., will

0 million euros a

financial covena, cross default ae EIB, then the nsequences on Tder to envisage

ubstantial part ocase of disposas previously besion of guarant

TDA/Interests, e

use the Compane or sell the assants with basic

ntrol. Identificath, at the investmount by cashdisciplined in ea

nt of default, noent of default mon of the undra

e companies mt ratios) as wel

ause relating to

DA, ents rest ture com

rket d on ans

31, s at

wing

ent ssly d or n to ent

g to rent l be

and

ants and EIB TIM an

of it l of een ees

etc.)

ny’s sets ally

tion ors’

h or ach

t to may awn

must l as

the

TIM GTRANSINCOMThe effectare set out (millions of e

Revenues:

Revenue ali

Other incom

Brazil Busin

Acquisition

Professiona

Employee b

Expenses re

Other opera

Sundry expe

Impact on O(losses) and

Impairment

Impairment Wholesale

Write-down

Impact on E

Finance inc

Miscellaneu

Finance exp

Miscellaneo

Impact on p

Income taxe

Expenses fo

Impact on p

ROUP - ESACTIONS

ME STATEMs of non-recurrit below in accor

euros)

ignment of previo

me:

ness Unit Tax reco

of goods and se

al expenses, consu

benefits expenses

elated to restructu

ating expenses:

enses and other p

Operating profit (d impairment rev

t reversals (losse

loss on Goodwill

of intangible asse

EBIT - Operating p

come:

us finance income

penses:

ous finance expen

profit (loss) befor

es on non-recurrin

or tax risks Spark

profit (loss) for th

FFECTS OS ON EACHMENTS ing events and rdance with Con

us years

overy effect

rvices, Change in

ulting services an

s:

uring, rationalizat

provisions

(loss) before deprversals (losses) on

es) on non-current

attributable to CG

ets

profit (loss)

e

nses

re tax from contin

ng items

kle case

he year

OF NON-REH ITEM OF

transactions onnsob communic

n inventories:

d other costs

ion and other

reciation and amn non-current ass

t assets:

GU Core Domestic

nuing operations

19

ECURRINGF THE SEP

n the separate ccation DME/RM/

mortization, capitasets (EBITDA)

c and CGU Interna

s

G EVENTSPARATE CO

consolidated inc/9081707 dated

al gains

ational

S AND ONSOLIDA

come statemend September 16,

2018

(62)

37

(15)

(233)

(135)

(408)

(2,590)

−

(2,998)

45

(38)

(2,991)

71

−

(2,920)

ATED

nts line items , 2009:

2017

−

−

(10)

(697)

(176)

(883)

−

(30)

(913)

−

(26)

(939)

262

(37)

(714)

TIM

(milion

Reven

Other

Total o

Acquis

Emplo

Other

Chang

Interna

Operaamortrevers

Depre

Gains

Impair

Opera

Incom

Financ

Financ

Profit

Incom

Profit

M S.p.A. - S

ns of euros)

nues

income

operating revenu

sition of goods and

oyee benefits expe

operating expens

ge in inventories

ally generated ass

ting profit (loss) btization, capital gsals (losses) on no

ciation and amort

(losses) on dispos

rment reversals (lo

ting profit (loss) (

e (expenses) from

ce income

ce expenses

(loss) before tax

e tax expense

(loss) for the yea

SEPARAT

es and other inco

d services

enses

es

sets

before depreciatigains (losses) andon-current assets

tization

sals of non-curren

osses) on non-cur

(EBIT)

m investments

ar

E INCOME

ome

ion and d impairment s (EBITDA)

nt assets

rrent assets

20

E STATEM

2018

13,902

252

14,154

(5,801)

(2,541)

(722

84

434

5,608

(3,155)

(11

(2,683)

(241)

71

1,177

(2,427)

(1,420)

(434

(1,854)

ENTS

8 2018

comparable

(a

2 14,055

2 252

4 14,307

) (5,715

) (2,531

) (703

4 84

4 434

8 5,876

) (3,259

) (11

) (2,683

) (77

1 71

7 1,172

) (2,424

) (1,258

) (491

) (1,749

8 2017

e

) (b

5 14,099

2 459

7 14,558

) (5,567

) (3,034

) (658

4 45

4 457

6 5,801

) (3,203

) (1

) (30

) 2,567

1 225

2 1,571

) (2,965

) 1,398

) (311

) 1,087

7 Chan(a-b

b) amount

9 (44)

9 (207)

8 (251)

) (148)

) 503

8) (45)

5 39

7 (23)

1 75

) (56)

1) (10)

0) (2,653)

7 (2,644)

5 (154)

1 (399)

) 541

8 (2,656)

1) (180)

7 (2,836)

nge b)

%

(0.3)

(45.1)

(1.7)

(2.7)

16.6

(6.8)

86.7

(5.0)

1.3

(1.7)

-

-

-

(68.4)

(25.4)

18.2

-

(57.9)

-

TIM

In accCompall no

(million

Profit

Other c

Other cIncome

Financincome

Profit (

Incom

Remea

Actuar

Incom

Share accoun

Profit (

Incom

Total oSepar

Other cIncome

Availab

Profit (

Loss (p

Incom

Hedgin

Profit (

Loss (p

Incom

Share accoun

Profit (

Loss (p

Incom

Total oSepar

Total o

Total c

M S.p.A. - S

cordance with prehensive Incomon-owner chang

ns of euros)

(loss) for the yea

components of the

components that we Statement

cial assets measure:

(loss) from fair va

e tax effect

asurements of emp

rial gains (losses)

e tax effect

of other comprehented for using the

(loss)

e tax effect

other componentate Income State

components that we Statement

ble-for-sale financ

(loss) from fair va

profit) transferred

e tax effect

ng instruments:

(loss) from fair va

profit) transferred

e tax effect

of other comprehented for using the

(loss)

profit) transferred

e tax effect

other componentate Income State

other component

comprehensive in

STATEME

IAS 1 (Presentame, including thes in equity.

ar

e Statement of Com

will not be reclass

red at fair value th

lue adjustments

ployee defined ben

ensive income (losequity method:

ts that will not beement

will be reclassified

ial assets:

lue adjustments

d to the Separate I

lue adjustments

d to the Separate I

ensive income (losequity method:

d to the Separate I

ts that will be recement

ts of the Stateme

ncome (loss) for t

NTS OF CO

ation of Finanche Profit (loss) f

mprehensive Incom

ified subsequently

rough other compr

nefit plans (IAS19)

ss) of associates an

e reclassified subs

d subsequently to

Income Statemen

Income Statemen

ss) of associates an

Income Statemen

classified subsequ

ent of Comprehen

the year

21

OMPREHE

ial Statements)for the year, as

me:

y to Separate

rehensive

):

nd joint ventures

sequently to

Separate

t

t

nd joint ventures

t

uently to

sive Income

ENSIVE IN

) here below ashown in the Se

(a)

(e=b+c+d)

(f)

(g)

(h)

(i= f+g+h)

(k= e+i)

(a+k)

COME re presented theparate Income

2018

(1,854)

(4)

−

(4)

20

(5)

15

−

−

−

11

11

−

(3)

8

70

10

(19)

61

−

−

−

−

69

80

(1,774)

he Statements e Statements, a

2017

1,087

−

−

−

9

(2)

7

−

−

−

7

(33)

−

9

(24)

(190)

393

(49)

154

−

−

−

−

130

137

1,224

of nd

7

7

−

−

−

9

)

7

−

−

−

7

)

−

9

)

)

3

)

4

−

−

−

−

0

7

4

TIM

(million

Assets

Non-c

Intang

Goo

Inta

Tangib

Pro

Ass

Other

Inv

No

Mis

Def

Total N

Curren

Inv

Tra

Cur

Cur

Total C

Total

M S.P.A. - S

ns of euros)

s

urrent assets

gible assets

odwill

angible assets wit

ble assets

operty, plant and e

sets held under fin

non-current asse

vestments

n-current financia

scellaneous receiv

ferred tax assets

Non-current asse

nt assets

ventories

ade and miscellan

rrent income tax r

rrent financial ass

Securities other tother current fina

Cash and cash eq

Current assets

Assets

STATEME

th a finite useful li

equipment owned

nance leases

ets

al assets

vables and other n

ets

eous receivables

receivables

sets

than investments,ancial assets

quivalents

NTS OF FI

ife

d

non-current asset

and other current

financial receiva

22

INANCIAL

ts

t assets

bles and

(

L POSITION

12/3

(a)

(b)

(a+b)

N

31/2018

(a)

24,341

6,339

30,680

10,782

1,694

12,476

7,821

1,642

1,704

882

12,049

55,205

262

3,850

166

793

885

1,678

5,956

61,161

12/31/2017

(b)

27,027

4,249

31,276

10,871

2,072

12,943

7,747

1,611

1,752

902

12,012

56,231

178

3,935

−

1,072

771

1,843

5,956

62,187

Change

(a-b)

(2,686)

2,090

(596)

(89)

(378)

(467)

74

31

(48)

(20)

37

(1,026)

84

(85)

166

(279)

114

(165)

−

(1,026)

(million

Equity

Equity

Sha

Les

Share

Add

Othinc

Total E

Non-c

No

Em

Def

Pro

Mis

Total N

Curren

Cur

Tra

Cur

Total C

Total L

Total E

ns of euros)

y and Liabilities

y

are capital issued

ss: treasury share

capital

ditional paid-in ca

her reserves and cluding profit (los

Equity

urrent liabilities

n-current financia

mployee benefits

ferred tax liabilitie

ovisions

scellaneous payab

Non-current liabil

nt liabilities

rrent financial liab

ade and miscellan

rrent income tax p

Current Liabilities

Liabilities

Equity and liabilit

d

s

apital

retained earningsss) for the year

al liabilities

es

bles and other no

lities

bilities

eous payables an

payables

s

ties

s (accumulated lo

n-current liabilitie

nd oher current lia

23

osses),

s

abilities

(f=

12/3

(c)

(d)

(e)

=d+e)

(c+f)

31/2018

(a)

11,677

(21)

11,656

2,094

4,388

18,138

24,777

1,503

3

579

3,006

29,868

7,903

5,238

14

13,155

43,023

61,161

12/31/2017

(b)

11,677

(21)

11,656

2,094

6,319

20,069

28,467

1,661

2

595

1,291

32,016

4,197

5,850

55

10,102

42,118

62,187

Change

(a-b)

−

−

−

−

(1,931)

(1,931)

(3,690)

(158)

1

(16)

1,715

(2,148)

3,706

(612)

(41)

3,053

905

(1,026)

TIM

(million

Cash f

Profit (

Adjust

De

Impinv

Net

Losinv

Cha

Cha

Chaon

Cha

Net

Netass

Cash f

Cash f

Tot

Tot

Cap

Cas

Acq

Chahed

Pro

Pronon

Cash f

Cash f

Cha

Propor

Reppor

Cha

Sha

Div

Cash f

Aggre

Net ca

Net ca

M S.P.A. -

ns of euros)

flows from operatin

(loss) for the year

tments for:

preciation and am

pairment losses (restments)

t change in deferr

sses (gains) realizestments)

ange in provisions

ange in inventorie

ange in trade receconstruction cont

ange in trade paya

t change in curren

t change in miscesets/liabilities

flows from (used

flows from investin

Purchase of intan

Purchase of tang

tal purchase of int

Change in amoun

tal purchase of int

pital grants receiv

sh and cash equiv

quisition/disposal

ange in financial rdging and non-hed

oceeds from sale o

oceeds from sale/n-current assets

flows from (used

flows from financin

ange in current fin

oceeds from non-crtion)

payments of non-crtion)

anges in hedging

are capital procee

vidends paid

flows from (used

egate cash flows

ash and cash equ

ash and cash equ

STATEME

ng activities:

mortization

reversals) on non-

red tax assets and

zed on disposals o

s for employee be

es

eivables and net atracts

ables

nt income tax rece

ellaneous receivab

in) operating act

ng activities:

ngible assets

gible assets

tangible and tangi

nts due for investi

tangible and tangi

ved

valents arising fro

of other investme

receivables and otdging derivatives

of investments in

/repayments of int

in) investing acti

ng activities:

nancial liabilities a

current financial li

current financial l

and non-hedging

eds/reimburseme

in) financing acti

uivalents at begin

uivalents at end o

ENTS OF CA

-current assets (in

d liabilities

of non-current ass

nefits

amounts due from

eivables/payables

bles/payables and

tivities

ible assets on an

ing activities

ible assets on a ca

m corporate trans

ents

ther financial asseunder financial as

subsidiaries

tangible, tangible

ivities

and other

abilities (including

iabilities (includin

derivatives

nts

ivities

nning of the year

of the year

24

ASH FLOW

ncluding

ets (including

m customers

s

d other

accrual basis

ash basis

sactions

ets (excluding ssets)

and other

g current

ng current

(d

WS

(a)

(b)

(c)

d=a+b+c)

(e)

(f=d+e)

2018

(1,854)

3,155

2,739

(14)

11

(194)

(84)

(65)

(174)

(205)

(434)

2,881

(3,310)

(1,791)

(5,101)

1,957

(3,144)

108

−

(130)

265

−

24

(2,877)

682

2,723

(3,534)

(224)

−

(166)

(519)

(515)

299

(216)

2017

1,087

3,203

73

(168)

1

439

(45)

(16)

(538)

(485)

99

3,650

(1,627)

(2,522)

(4,149)

676

(3,473)

82

(243)

(76)

(114)

−

47

(3,777)

(317)

3,243

(3,595)

199

−

(166)

(636)

(763)

1,062

299

Addit

(million

Incom

Interes

Interes

Divide

Analy

(million

Net ca

Cas

Ban

Net ca

Cas

Ban

tional Cash Flo

ns of euros)

e taxes (paid) rec

st expense paid

st income receive

ends received

ysis of Net Cas

ns of euros)

ash and cash equ

sh and cash equiv

nk overdrafts repa

ash and cash equ

sh and cash equiv

nk overdrafts repa

ow information

eived

ed

h and Cash Eq

uivalents at begin

valents

ayable on demand

uivalents at end o

valents

ayable on demand

uivalents

nning of the year:

d

of the year:

d

25

(2

(1

2018

(632)

2,034)

953

115

2018

771

(472)

299

885

1,101)

(216)

2017

(949)

(2,838)

1,658

255

2017

1,230

(168)

1,062

771

(472)

299

TIM

(million

Non-c

Bonds

Amoun

Financ

Curren

Bonds

Amoun

Financ

Total G

Non-c

Financ

Curren

Securi

Financ

Cash a

Total f

Net fin

Reversfinanc

Adjust

Breakd

Total a

Total a(1) of w

Bonds

Amoun

Financ

M S.P.A. -

ns of euros)

urrent financial li

s

nts due to banks,

ce lease liabilities

nt financial liabili

s

nts due to banks,

ce lease liabilities

Gross financial de

urrent financial a

cial receivables an

nt financial asset

ities other than in

cial receivables an

and cash equivale

financial assets

nancial debt carry

sal of fair value mcial liabilities/asse

ted Net Financial

down as follows:

adjusted gross fin

adjusted financia

which current port

s

nts due to banks,

ce lease liabilities

NET FINA

iabilities

other financial pa

ities (1)

other financial pa

ebt

assets

nd other non-curre

ts

vestments

nd other current fi

ents

ying amount

measurement of deets

l Debt

nancial debt

al assets

tion of medium/lo

other financial pa

ANCIAL DE

ayables and liabilit

ayables and liabilit

ent financial asset

inancial assets

erivatives and rela

ng -term debt:

ayables and liabili

26

EBT

12/3

ties

ties

ts

ated

ities

31/2018

13,984

9,348

1,445

24,777

2,126

5,618

159

7,903

32,680

(1,642)

(1,642)

(466)

(327)

(885)

(1,678)

(3,320)

29,360

(1,307)

28,053

30,712

(2,659)

2,126

3,372

159

12/31/2017

14,902

11,709

1,856

28,467

1,528

2,522

147

4,197

32,664

(1,611)

(1,611)

(746)

(326)

(771)

(1,843)

(3,454)

29,210

(1,414)

27,796

30,298

(2,502)

1,528

1,428

147

Change

(918)

(2,361)

(411)

(3,690)

598

3,096

12

3,706

16

(31)

(31)

280

(1)

(114)

165

134

150

107

257

414

(157)

598

1,944

12

TIMON

The ebelow

(million

Opera

Reven

Acquis

Profes

Emplo

Charge

Other

Charge

Sundry

Impac(losse

Impair

Goodw

Impair

Impac

Other

Impac

Incom

Impac

M S.P.A. - EACH ITE

effects of non-rw in accordance

ns of euros)

ting revenues an

nue alignment of p

sition of goods an

ssional and consu

oyee benefits exp

es and provisions

operating expens

es and provisions

y expenses

ct on operating prs) and impairmen

rment reversals (

will impairment ch

rment losses on in

ct on EBIT - Opera

finance income (

ct on profit (loss)

e taxes on non-re

ct on profit (loss)

EFFECTS OEM OF THE

ecurring eventswith Consob co

d other income

previous years

nd services

lting services

penses

for restructuring

ses

for fines

rofit before deprent reversals (losse

losses) on non-cu

harges

ntangible assets

ating profit (loss)

(expenses)

before tax from c

ecurring items

for the year

OF NON-RE SEPARAT

s and transactioommunication D

and other

eciation and amores) on non-curren

urrent assets

continuing operat

27

RECURRINTE INCOM

ons on the sepaDME/RM/908170

rtization, capital nt assets (EBITDA

tions

NG EVENTSME STATEM

arate income st07 dated Septem

gains A)

S AND TRAMENTS

tatements line mber 16, 2009:

2018

(62)

(62)

(13)

(13)

(221)

(221)

(108)

(87)

(21)

(404)

(2,686)

(2,686)

−

(3,090)

(9)

(3,099)

75

(3,024)

ANSACTIO

items are set o

2017

−

−

(8)

(8)

(692)

(692)

(176)

(148)

(28)

(876)

(30)

−

(30)

(906)

(26)

(932)

261

(671)

ONS

out

AD

This sContr

IFRS

On Nlevel, hedgeAs pe

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• t

Commreceivloss malso bcontrameas TIM Mcustomodefinancwith t The b

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section providesracts with Custom

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ovember 22, 20relating to the

e accounting. ermitted by IFRS

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the non-restate

mencing as of Javables due frommodel required bbeen modified actual cash flow

sured) on the ba

Management haomers) on the bels is to ensure cial resources imthe strategies se

business models

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ncial assets othemates expected

antial increase i

expected credit ability that the centage terms, of”).

etermine the PD

he managemenfic nature of theng capital thro

ction policies, anning needs.

business models

Hold to Collect: OLOs for the DoIFRS 9 category

OF THE N

s an overview omers) and repor

cial Instrum

016, Regulation classification, m

S 9, the TIM Grou

pplication of the

ement of compa

anuary 1, 2018, m customers), byby IAS 39. In appand is now baw characteristic

asis of their dest

as identified its asis of how thean adequate l

mmediately avaet forth by the P

s adopted by the

financial instrummaturity; and ar

and Sell: monetae low risk and get fair value thro

netary, debt anr the business m

measured at fair

er than trade recredit losses ovin its credit risk.

loss (“ECL”) is counterparty dof the amount of

and LGD, refere

nt of trade recee receivables, though the constand the manage

s adopted by the

receivables usuomestic Busines“Assets measu

NEW IFRS

of the main elerts the impact o

ments)

(EU) No. 2016/2measurement,

up has opted for

e hedge accoun

arative informat

TIM has amendy adopting an eplication of IFRSsed on the entcs of the financtination.

business modee financial instrulevel of financiaailable to the GParent TIM.

e TIM Group are

ments used to are measured at

ary or debt instrenerally held to ough other comp

d equity tradingmodels identified

value through p

eceivables are wver the followin

given by: (i) thoes not meet its f credit that it w

ence is made to

eivables, TIM Mhe type of countant monitoring ment of progra

e TIM Group for

ually held to mass Unit, and all red at amortize

28

S 9 AND IF

ements of IFRS of the applicatio

2067 was issuedderecognition a

r:

nting requireme

ion provided in t

ded the impairmexpected credit S 9, the classificatity’s business mcial asset. Unde

els for Group finuments are maal flexibility and

Group through t

e:

absorb temporaramortized cost;

ruments used tomaturity, or othprehensive inco

g instruments usd above; such inprofit or loss.

written down fong 12 months, o

he present valuepayment obliga

will not be able t

o the Bloomberg

Management haerparty and colof the payme

ms for the disp

managing trade

aturity, such asreceivables for

ed cost”;

FRS 15 ST

9 (Financial Insn of the standa

d, which adopteand impairment

nts of IAS 39;

the year of first

ment model apploss model as p

ation (and hencemodel for maner IAS 39, finan

nancial assets (oanaged and thed to best manahe treasuries o

ry cash surpluse;

o absorb short/mherwise sold to cme;

sed to dynamicanstruments are h

or impairment oor over the resid

e at the reportiation (probabilitto recover in the

g credit risk mod

as identified diflection times, innt performanceosal and factor

e receivables ar

s trade receivabthe Brazil Busin

TANDARD

struments) and rds as of Januar

ed IFRS 9 (Finant of financial as

application.

plied to financiaper IFRS 9, whice measurementaging the financial assets wer

other than tradir cash flows us

age, in terms of Group compa

es; such instrum

medium-term cacover specific ca

ally manage cahigher risk and t

on the basis of dual life of the

ing date of thety of default, “Pe event of a def

del.

fferent businessn order to optime of customersing of receivabl

re:

bles due from laness Unit; these

DS

IFRS 15 (Revenry 1, 2018.

ncial Instrumentssets and liabilit

l assets (includich replaces the t) of financial asncial assets andre classified (an

de receivables dsed. The purposf risks and retunies and in acc

ments are low ris

ash surpluses; sash requirement

sh surpluses notraded repeated

a general modasset in the ev

e financial assetPD”), (iii) the estifault (loss given

s models basedmize the manage

, the steering oles, in line with

arge customers e instruments fa

nue from

ts) at EU ties, and

ng trade incurred

ssets has d on the nd hence

due from se of the urns, the cordance

sk and

uch ts; and

t dly over

el which vent of a

t, (ii) the imate, in

n default,

d on the ement of of credit financial

and the all within

HBii

ImpaistandrecogcalcuforwameasIn genand pMore expecrecordmeasAs regcreditaveraFor clwholethe as At the(otheassetafore(FVTOlosseswhen The cTIM G The cdate receivby IAS

IFRS

On SecontraadoptIFRS (ConsIFRIC BarteThe Ttime aadopt The acontra15 vs.

bIc

ad

Hold to Collect Business Unit, rinstruments falincome”. As req

irment of tradedard. This apprognition and on lating the avera

ard-looking elemsurements are mneral, the meth

payment terms. specifically, in

cted loss is estided for turnove

suring the most gards receivablet default risk forage of sums recelusters with relaesale customersssessment.

e transition dater than those in s” and measurementioned “ot

OCI). Only divides are recognized

n the financial as

changes in the cGroup.

comprehensive nof January 1,

vables, connecteS 39.

S 15 (Reve

eptember 22, 20acts with customted through Com15 replaces th

struction contrac15 Agreements r transactions in

TIM Group has aapplication of thted, without res

adoption of IFRSact costs. The IAS 18, IAS 11 a

bundle offers (bFRS 15 determicases, the defer

activation/instaduration of the

and Sell: receivreceivables due ll under IFRS 9

quired by IFRS 9,

e receivables anoach involves esubsequent m

age expected uments. For so

made on individuhodology to reco

the case of recimated based oer generations trecent perform

es arising from or ongoing paymeived from suchational-based crs, sales network

e (January 1, 20subsidiaries, as

ed at fair value,her investmentends from “othd through othesset is disposed

classification of

net impact (incl2018 was mai

ed with the intro

enue from c

016, Commissiomers) and the rmmission Regulhe standards tcts) and the relafor the construc

nvolving advertispplied the modhe standard as

stating prior peri

S 15 affected thmain difference

and relative Inte

bundled good aines an earlier rrral of revenues,

allation revenucustomer relat

vables usually trfrom active cocategory “Fina

impairment is n

nd contract assestimating the

measurements. uncollectibility, bome categoriesual credit positioognize the expe

ceivables arisingon the trend ofthat have compance, suitable fooffers where pro

ment-by-installmh customers. redit managemk dealers), inform

018), TIM has chssociates and jo through other ts” are therefoer investmentsr comprehensivof or impaired a

f financial asset

luding tax effecinly due to theoduction of an e

contracts

on Regulation (Erelated amendmlation (EU) No. 2that formerly gated interpretatction of real estsing services). ified retrospectian adjustment iods.

he recognition oes for the TIM Gerpretations) con

and services): threcognition of re, entailing the re

ues: under prevtionship. IFRS 15

29

raded massivelyonsumer, small ancial assets mnevertheless rec

sets is carried expected loss For each custobased on histor of receivableons. ected loss differ

g from traditionf outstanding repleted the operor identifying deoducts or contrib

ment plans cons

ment (such as mmation that can

hosen to continuoint ventures)”,

comprehensiveore measured a” are recognize

ve income withoas provided by I

s had no mater

cts) of the adope recognition oexpected credit

with custo

EU) No. 2016/19ments at EU lev2017/1987. governed reventions on revenuate, IFRIC 18 Tra

ive approach wito the opening

of revenues fromroup with respe

ncern:

he allocation of evenues, resultinecognition of a c

vious accountin5 requires that

y and on a recuand medium b

measured at faicognized in the

out through thover the life o

omer segment, rical and statists characterized

s based on the

al services offeeceivables with ating cycle as aeviations from tbution fees are iders the trend

major TOP custon identify specifi

ue to report gaiclassified under

e income, also uat fair value t

ed in the incomeout reclassificatAS 39.

rial impact on t

ption of IFRS 9 oof higher write-

loss model, rep

omers)

905 was issued, vel. On October

nue recognitionue recognition (Iansfers of assets

th the recognitibalance of equ

m fixed-line anect to the previo

f contract discoung in the recogcontract liability

ng policies, thesuch revenues

urring basis, sucusiness customr value throughseparate incom

e simplified apf the receivablethe estimate

ical indicators, d by specific

offering conten

ered to consumerespect to turn

a reference, as he historical trepaid in installmof the custome

mers, the publiic individual cou

ns and losses frr IAS 39 as “ava

under IFRS 9. Ashrough other ce statement, wtion to the sepa

the measureme

on consolidated -downs for exp

placing the incur

which adopted31, 2017, clarifi

n, namely IAS IFRIC 13 Customs from custome

on of the cumuuity for the perio

d mobile offersous accounting

unts to performnition of a cont

y;

ese were defer– given that th

ch as, for the Dmers held for sa

h other compreme statement.

pproach allowede at the time is principally mpossibly adjusterisk elements,

nt, the custome

ers and businesnover, using thwell as parame

end. ents, the assess

er drop out rate

c administrationunterparty risk is

rom “other inveailable-for-sale s of January 1, 2comprehensive

while all other gaarate income sta

ent of the asset

equity at the tpected losses orred loss model

d IFRS 15 (Revencations to IFRS

18 (Revenue),mer loyalty progrers and SIC 31 Re

ulative effect of tod when the sta

s and the recogstandards appli

mance obligationtract asset and,

red over the ehey are not allo

Domestic le; these ehensive

d by the of initial

made by ed using

specific

er cluster

sses, the e values eters for

sment of and the

n sector, s used in

estments financial

2018, the income

ains and atement

s for the

ransition on trade required

nue from 15 were

, IAS 11 rammes, evenue –

the first-andard is

nition of ied (IFRS

ns under in some

expected cated to

st

cpewi

The c2018

t

tw

IMP

Imp

The im

TIM G

(million

Assets

Non-c

Intang

Intang

Other

Non-cu

Misce

Deferr

Curren

Trade

Curren

Total

Equity

Equity

Equity

Non-co

Total E

Non-c

Misce

Deferr

Curren

Trade

Curren

Total E

separate perforthe contract;

contract costs (policies, these cexpected duratiwith the exceptin some cases.

comprehensive (transition date

the change in th

the new approawith the earlier

PACTS OF

pacts on th

mpacts of the tr

GROUP

ns of euros)

s

urrent assets

gible assets

gible assets with a

non-current asse

urrent financial as

llaneous receivab

red tax assets

nt assets

and miscellaneou

nt financial assets

Assets

y and Liabilities

y

y attributable to Ow

ontrolling interest

Equity

urrent liabilities

llaneous payables

red tax liabilities

nt liabilities

and miscellaneou

nt income tax paya

Equity and Liabili

mance obligatio

(incremental cocosts were capon of the contra

tion of the recla

net impact (ince) was not mate

he types of cont

ach to recognizinrecognition of r

THE ADO

he stateme

ransition on the

a finite useful life

ets

ssets

bles and other non

us receivables and

s

wners of the Pare

ts

s and other non-cu

us payables and o

ables

ities

ons – are alloca

osts of obtainingpitalized or defeact and the typessification of ce

cluding tax efferial and mainly

tract costs that

ng activation/insevenues from b

OPTION O

ent of finan

main line items

n-current assets

d other current as

nt

urrent liabilities

other current liabil

30

ated to other pe

g a contract anderred and recoge of customer. T

ertain contract c

cts) of the adoconnected with

are deferred;

stallation revenubundle offers.

F IFRS 9 A

ncial posit

s of the stateme

ssets

ities

erformance obli

d costs to fulfill gnized in the inThe approach iscosts and the ch

ption of IFRS 15h the combined

ues and the rec

AND IFRS

tion at 1/1/

ents of financial

12/31/2017

Historical

7,192

1,768

2,422

993

4,959

5,005

68,783

21,557

2,226

23,783

1,678

265

7,520

112

68,783

igations (usually

a contract): undncome statemes substantially change in the typ

5 on consolidateffects of:

ognition of cont

15

/2018 (tran

l position are sh

IFRS 9 impacts

27

(147)

(120)

(100)

(7)

(107)

(11)

(2)

(120)

y services) cont

der previous accent on the basionfirmed underpes of costs con

ted equity at Ja

tract assets con

nsition dat

own below.

IFRS 15 impacts

1/1

Re

(110)

(269)

42

(337)

17

2

19

(251)

8

(113)

(337)

tained in

counting is of the r IFRS 15, nsidered,

anuary 1,

nnected

te)

1/2018

estated

7,082

1,768

2,153

1,020

4,854

5,005

68,326

21,474

2,221

23,695

1,427

262

7,407

110

68,326

TIM S

(million

Assets

Non-c

Intang

Intang

Other

Invest

Misce

Deferr

Curren

Trade

Total

Equity

Equity

Non-c

Misce

Deferr

Curren

Trade

Curren

Total E

S.p.A.

ns of euros)

s

urrent assets

gible assets

gible assets with a

non-current asse

ments

llaneous receivab

red tax assets

nt assets

and miscellaneou

Assets

y and Liabilities

y

urrent liabilities

llaneous payables

red tax liabilities

nt liabilities

and miscellaneou

nt income tax paya

Equity and liabilit

a finite useful life

ets

bles and other non

us receivables and

s and other non-cu

us payables and o

ables

ties

n-current assets

d other current as

urrent liabilities

oher current liabilit

31

ssets

ties

12/31/2017

4,249

7,747

1,752

902

3,935

62,187

20,069

1,291

2

5,850

55

62,187

7 IFRS 9 impacts

9

7 2

2

2 28

5 (114)

7 (84)

9 (82)

1

2

0

5 (2)

7 (84)

IFRS 15 impacts

1

(78)

(192)

19

(251)

88

(252)

34

(121)

(251)

1/1/2018

4,171

7,749

1,560

930

3,840

61,852

20,075

1,039

36

5,729

53

61,852

Impitemfor t

To enpositistand The bbelow

TIM G (million

Reven

Operat

Operacapitacurren

Depre

Opera

Other

Financ

Profit

Incom

Profit

Attr

TIM S (million

Reven

Operat

Operacapitacurren

Depre

Opera

Financ

Profit

Incom

Profit

pact of newms of the sthe year 2

nable the year-on figures and

dards applied (IA

breakdown of tw.

GROUP

ns of euros)

nues

ting expenses

ting profit (loss) bal gains (losses) ant assets (EBITDA

ciation and amort

ting profit (loss) (

income (expenses

ce income/(expen

(loss) before tax

e tax expense

(loss) for the yea

ributable to:

Owners of the Pa

Non-controlling in

S.p.A.

ns of euros)

nues

ting expenses

ting profit (loss) bal gains (losses) ant assets (EBITDA

ciation and amort

ting profit (loss) (

ce income/(expen

(loss) before tax

e tax expense

(loss) for the yea

w accountiseparate in018

on-year compa“comparable”

AS 39, IAS 18, IAS

he impact of th

before depreciatiand impairment reA)

tization

(EBIT)

s) from investmen

nses)

from continuing

ar

arent

nterests

before depreciatiand impairment reA)

tization

(EBIT)

nses)

ar

ing standancome stat

arison of the ecincome statem

S 11, and relativ

he new accoun

ion and amortizateversals (losses)

nts

operations

ion and amortizateversals (losses)

32

ards (IFRS 9tement an

conomic and finment figures, prve Interpretation

nting standards

tion, on non-

tion, on non-

9 and IFRSnd stateme

nancial performrepared in accons) are provided

on key income

(1)

(2)

(3)

(4)

(5)

(6)

(1)

(2)

(3)

(4)

(6)

S 15) on thent of fina

mance for 2018, ordance with th

d below.

e statement fig

2018

(a)

18,940

(11,878)

7,403

(4,255)

561

11

(1,348)

(777)

(375)

(1,152)

(1,411)

259

2018

(a)

13,902

(8,546)

5,608

(3,155)

(241)

(1,250)

(1,420)

(434)

(1,854)

e main linencial posit

“comparable” he previous acc

gures for 2018 i

2018

comparable

(b)

19,109

(11,737)

7,713

(4,399)

727

10

(1,341)

(605)

(433)

(1,038)

(1,298)

260

2018

comparable

(b)

14,055

(8,431)

5,876

(3,259)

(77)

(1,252)

(1,258)

(491)

(1,749)

e tion

financial counting

s shown

Impact of

new

standards

(c=a-b)

(169)

(141)

(310)

144

(166)

1

(7)

(172)

58

(114)

(113)

(1)

Impact of new

standards

(c=a-b)

(153)

(115)

(268)

104

(164)

2

(162)

57

(105)

1)

2)

3)

4)

5)

6)

The bDecem TIM G (million

Assets

Non-c

Intang

Tangib

Other

Total N

Curren

Total

Equity

Equity

Equity

Non-co

Total E

Non-c

Curren

Total L

Total E

The change in revenues and treflecting the c

The change incontract costs assets to othertrade receivabmodel).

The change inintangible asse

The change indowns of the Ostatements of

The change inassets, due to t

The change in

breakdown of thmber 31, 2018 is

GROUP

ns of euros)

s

urrent assets

gible assets

ble assets

non-current asse

Non-current asse

nt Assets

Assets

y and Liabilities

y

y attributable to ow

ontrolling interest

Equity

urrent liabilities

nt liabilities

Liabilities

Equity and liabilit

Revenues wasto the discountincreditworthiness

n Operating expthat were prev

r non-current ales, resulting fr

n Depreciation ets to other non-

n Other incomeOther investmecomprehensive

Finance incomthe introduction

Income tax exp

he impact of thes shown below.

ets

ets

wners of the Paren

ts

ties

attributable tong of revenues s of specific cust

penses was maviously expensend current asse

rom the introdu

and amortizat-current and cu

e (expenses) froents, which with

income.

me (expenses) wn of an expected

pense shows the

e new accounti

nt

33

o the different afrom sales usingtomers.

ainly due to thed and to the re

ets (cost deferrauction of an ex

tion was due trrent assets (co

om investmenth the new stan

was due to higd credit loss mo

e income tax eff

ng standards o

12/3

accounting of bug the deferred p

e deferral of ceeclassification oal), as well as hpected credit lo

to the reclassifiost deferral).

ts was due to tndard are recog

gher provisions del (replacing th

fect of the chan

n the main stat

31/2018

(a)

35,658

16,146

5,086

56,890

8,729

65,619

19,528

2,219

21,747

30,991

12,881

43,872

65,619

undle offers anpayment metho

ertain subscribeof some contracigher provisionsoss model (repl

ication of certa

the different acgnized under ot

for expected lohe incurred loss

ges illustrated a

tements of fina

12/31/2018 i

comparable

(b)

35,771

16,146

5,368

57,285

8,794

66,079

19,716

2,225

21,941

31,276

12,862

44,138

66,079

d activation/insod, using a disco

er acquisition coct costs from ins for expected lolacing the incur

ain contract cos

ccounting of thher component

osses on other model).

above.

ancial position fi

mpact of new

standards

(c=a-b)

(113)

−

(282)

(395)

(65)

(460)

(188)

(6)

(194)

(285)

19

(266)

(460)

stallation ount rate

osts and ntangible osses on rred loss

sts from

he write-ts of the

financial

igures at

TIM S

(million

Assets

Non-c

Intang

Tangib

Other

Total N

Curren

Total

Equity

Total E

Total N

Total C

Total L

Total E

Existinstanddistribtypes In conGroup (millio

Reven

Opera(losse

Opera

Profit

Incom

Profit

Attr

S.p.A.

ns of euros)

s

urrent assets

gible assets

ble assets

non-current asse

Non-current asse

nt assets

Assets

y and Liabilities

Equity

Non-current liabil

Current Liabilities

Liabilities

Equity and liabilit

ng improvemendards, together bution of the rev.

nnection with thp have been rec

ons of euros)

nues

ting profit (loss) bs) and impairmen

ting profit (loss) (

(loss) before tax

e tax expense

(loss) for the yea

ributable to:

Owners of the Pa

Non-controlling in

ets

ets

lities

s

ties

nts - also on thewith the high nvenues during t

he forgoing, somalculated. The t

before depreciatint reversals (losse

(EBIT)

from continuing

ar

arent

nterests

e supporting IT snumber of new the first and sec

me first and sectime series of th

ion and amortizates) on non-curren

operations

34

12/3

***

systems - relatincommercial off

cond quarters of

cond quarter 20he 2018 quarters

tion, capital gainnt assets (EBITDA

31/2018

(a)

30,680

12,476

12,049

55,205

5,956

61,161

18,138

29,868

13,155

43,023

61,161

ng to the procesfers of recent mf 2018 for some

018 consolidateds is the following

1° Quarter

4,685

s A) 1,793

740

391

(156)

235

199

36

12/31/2017 I

comparable

(b)

30,770

12,476

12,265

55,511

5,995

61,506

18,238

30,125

13,143

43,268

61,506

ss of implementmonths, involvede specific fixed-li

d income statemg:

2018

2° Quarter 3

4,726

1,940

874

513

(141)

372

333

39

mpact of new

standards

(c=a-b)

(90)

−

(216)

(306)

(39)

(345)

(100)

(257)

12

(245)

(345)

ting the new accd recalculating tine and mobile

ment figures of

3° Quarter 4° Q

4,666

2,045

(997)

(1,326)

43

(1,283)

(1,400)

117

counting the time contract

f the TIM

Quarter

4,863

1,625

(56)

(355)

(121)

(476)

(543)

67

The n (million

Curren

Total t

Total

Equity

Equity

Total E

Non-c

Deferr

Trade

Total E

Recal“Aggropera

net cumulative im

ns of euros)

nt and non-curren

trade and miscella

Assets

y

y attributable to ow

Equity

urrent and curren

red tax liabilities

and miscellaneou

Equity and liabilit

culation of the regate cash flowating activities”.

mpacts on the f

nt assets

aneous receivable

wners of the Paren

nt liabilities

us payables and o

ties

time distributiows” of the TIM

financial positio

es and other curre

nt

other current liabil

on of the revenGroup’s statem

35

n figures are the

ent assets

ities

nues over the fment of cash flo

e following:

first and secondows, and in par

3/31/2

d quarters of 20rticular the “Cas

as at

2018 6/30

(12)

(12)

(17)

(17)

(7)

12

(12)

018 did not imsh flows from (

as at

0/2018

(3)

(3)

(22)

(22)

(8)

27

(3)

pact the (used in)

IFR

IFRS 116 repSIC 15

IFRS 1

Accorrecoglease

Contrthe cupast.

UponGroupcorres

At TIMaccou

With

The msumm

In theimpacthe in16.

On ththe nrepres

The psystemon thongoi

The imchang

RS 16 (LEA

16 (Leases) was places IAS 17 (L5 Operating Leas

16 (Leases) appl

rding to IFRS 1gnition of a fina

payments, aga

racts classified burrent accountin

first applicatiop intends to appsponding “right

M Group level, tunting represent

land and b infrastructu right of usereference to the

IFRS 16 is ulow unit va

the “right oitems in th

any service contracts w lease contrmain impacts onmarized as follow

Statements correspondinexpected to bSeparate incclassification“Lease and rthe year on use asset” aIAS 17, in higthe last yearsStatements "Cash flows f

e following Finact of the new stnformation alrea

he other hand, itew standard wsented in comp

process of implms, modificatio

he current resuling.

mpacts during ge with resulting

ASES)

adopted in the eases) and relases – Incentives;

lies retrospectiv

6, lease agreemncial liability in inst the recogni

by the lessee as ng presentation

n of IFRS 16, foply the modifiedof use asset”, m

the contracts ttation as describ

uildings for officure sites for thee on network infe options and ex

usually not applialue; of use asset” ane statements of

e contract compwith similar charracts already clan the Group's cows:

of financial posng higher financbe recognized ucome statemen of expenses (thental costs – paa like-for-like bnd the applicat

gher income stas of the contracof Cash Flows: from operating

ncial Statementtandard, providady reported to

t should be notewill not have any

arable terms.

lementing the n and updating ts of the analy

transition are ng economic and

European Unioative interpretat; SIC 27 Evaluati

vely as of Janua

ments (that arthe statementsition under asse

financial leasesn, since they will

or the contractsd retrospective ameasured on the

hat are in the sbed above, main

ce and industria mobile telephofrastructure (whxemptions prov

ied to intangible

nd the financial lf financial positi

ponent includedracteristics are massified as finanonsolidated fina

sition: higher nocial liabilities; a

upon transition.nts: a positive he amortizationayments for opeasis. Furthermoion of the effec

atement expenscts.

lease paymentactivities" to "Ca

ts, the TIM Grouding alternative o the market, na

ed that - as thisy impact on the

new accounting of the control a

yses, have not b

not indicative od financial reper

36

n on October 31tions (IFRIC 4 Deng the Substanc

ry 1, 2019.

e not service cs of financial poets of the "right

s according to IAl continue to be

s already classiapproach recogne basis of the re

scope of applicnly refer to:

al use, ony network, andhen not servicesided for by IFRS

e assets or to sh

liabilities relatinion; in the lease paymeasured using

nce lease under ancial statemen

on-current assets a result, a le impact on EB

n of “right of useerating leases”, ore, the combinctive interest ratses in the first fe

ts for the princash flows from

up will provide aperformance m

amely EBITDA a

s is a different me Group's cash

g standard entand compliancebeen audited a

of future develocussions on rec

1, 2017 by Commetermining whetce of Transaction

contracts) are aosition, represenof use asset".

AS 17, will not beclassified as fin

fied as operatinnizing a financia

emaining lease p

ation of IFRS 16

d s). S 16, the TIM Gro

hort-term (i.e. le

g to lease agree

yments is generg a single discouIAS 17 retain the

nts, which are st

ts due to the reease liability in

ITDA, due to te asset” and “finas per IAS 17), ination of the strte method for lew years of the

cipal of the debfinancing activit

all the detailed measures that wand net financia

method of accougeneration or

tails significant models and of nd may change

opments since tognition in the f

mission Regulatither an Arrangens Involving the

accounted by tnted by the pres

e subject to anynance leases in f

ng leases accoral liability for leapayments at the

6 and will have

oup will adopt th

ss than 12 mont

ements are clas

rally excluded frunt rate; e previously rectill being assess

ecognition of “rthe range of 3

the different nnancial expensen the range of 0raight-line deprelease liabilities w

e contracts and

bt repayment wties".

information neewill allow a consal debt, adjusted

unting presentaon financial an

updates and mtheir processes

e since implem

the choices of afinancial statem

ion (EU) 2017/19ement Contains

Legal Form of a

the lessee throsent value of th

y change with refull accordance

rding to IAS 17, ase agreementse transition date

e an impact in t

he following cho

ths) and to cont

sified in specific

rom the IFRS 16

ognized values.sed and refined,

right of use ass3.4 – 3.9 billion

ature, descriptie for interest” in0.6 – 0.8 billion eeciation of the will result, comdecreasing exp

will be reclassifi

eded to understsistent comparisd for the impac

ation - the applicd performance

modifications o. The impacts aentation proces

allocating capitments.

986. IFRS a Lease;

a Lease).

ough the he future

espect to with the

the TIM s and the e.

terms of

oices:

tracts of

c line

scope;

, may be

set” with euros is

ion, and nstead of euros for “right of pared to

penses in

ied from

tand the son with

ct of IFRS

cation of metrics,

n the IT re based ss is still

al might