Telecom Italia Group - 1Q 2014 Results

MARCO PATUANO – PIERGIORGIO PELUSO

TELECOM ITALIA GROUP

1Q ’14 ResultsMilan, May 13th 2014

Telecom Italia Group 1Q 2014 Results

1MARCO PATUANO - PIERGIORGIO PELUSO

TELECOM ITALIA GROUP1Q 2014 Results

Safe HarbourThese presentations contain statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Thesestatements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of developments and changesin the customer base, estimates regarding future growth in the different business lines and the global business, market share, financial results and other aspects of theactivities and situation relating to the Telecom Italia Group. Such forward looking statements are not guarantees of future performance and involve risks anduncertainties, 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 lookingstatements. Forward-looking information is based on certain key assumptions which we believe to be reasonable as of the date hereof, but forward looking informationby its nature involves risks and uncertainties, which are outside our control, and could significantly affect expected results. Analysts and investors are cautioned not toplace undue reliance on those forward looking statements, which speak only as of the date of this presentation. Telecom Italia undertakes no obligation to releasepublicly 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 unanticipatedevents. 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 UnitedStates 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 havebeen applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2013, to which reference can be made, exceptfor the new standards and interpretations adopted by the Telecom Italia Group which didn’t impact on the Abbreviated Consolidated Financial Statements as of and forthe three months ended 31 March 2014. Please note that the limited review on the Telecom Italia Abbreviated Consolidated Financial Statements at 31 March 2014 hasnot 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-currentassets held for sale) the consolidated financial statements data of prior periods (including the first quarter 2013) have been restated accordingly and therefore theSofora - 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 itscommercial 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.

2MARCO PATUANO


Agenda

• TI 1Q’14 Results

• Progressing in TI’s new course

• Financial Update

• Take-Aways

• Appendix

3MARCO PATUANO


Reve

nues

1Q’14 Reported

Telecom Italia 1Q’14 Results€mln, %YoY

Ebitd

aCa

pex

GroupDomesticBrazil

GroupDomesticBrazil

GroupDomestic

o/w innovative

Brazil

5,1883,7281,451

2,2001,792

406

684493130

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

Ebitd

a-C

apex

GroupDomesticBrazil

1,5161,299

217

-7.3%-5.5%

-23.9%86%

14%

-5.7%-5.4%-6.4%

n.a.n.a.

n.a.n.a.

4MARCO PATUANO


34

1Q'13 1Q'14

34

1Q'13 1Q'14

3,895 3,554

171 174

1Q'13 1Q'14

Domestic (1) Performance Dashboard

4,0663,728-8.3%

Total Revenues

Ebitda - Capex

on revenues 48.0% 48.1%

Reported data, €mln, %YoY

Capex

-8.8%

+1.9%Handsets

Services

579493SAC(2)

-9.5%

net of newSAC policy

-14.9%

Ebitda

SAC(2)1,953

1,792-8.2%

-6.6%

net of newSAC policy

-10.1%-10.5%

-9.1% -9.1%-8.8%

1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

Service Revenues Trend

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

5MARCO PATUANO


-19%-19%

-16% -16% -16%

1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

FY’13 -17.3%

48 20

645503

465

455

47

39

87

83

80

76

1Q'13 1Q'14

Domestic Mobile RevenuesTotal Revenues Retail Revenues Trend

business generated

businessreceived

1,2921,099

handsets

total 1,3721,175

-22.0%

-14.4%

-5.7%

-14.9%

YoY


retailservice 1,205

1,017

wholesale& others

totalservice

-15.7%

-15.6%

-4.7%

1,159978

-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%

voic

ese

rvic

e

-8%-6%

-1%

+2%

-2%

1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

FY’13 -3.2%VAS

6MARCO PATUANO


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 KPIsGross Adds

~9.0 mln

% YoY

7MARCO PATUANO


1,259 1,124

401 401

273 267

56 48

709618

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 RevenuesTotal Revenues


access&voice

internet

business data

other

retail service

domesticwholesale

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

2,9302,715

2,9762,771

Service Revenues TrendYoY

tota

l

-6.2% -6.0%

-6.8%

-8.2%

-7.5%

1Q'13 2Q'13 3Q'13 4Q'13 1Q'14

reta

il

8MARCO PATUANO


+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 KPIsFixed Access

21,016 20,788 20,536

OLO

TI re

tail

M/S 63.5% 63.4% 63.0%64.0%

20,378

Line Losses Trend‘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 of TI Retail Calling accesses (-140k) and increasing disconnections of Retail OLOs Calling in TI 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

9MARCO PATUANO


+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 KPIsBB Access

13,812 13,805 13,753

CB T

I re

tail

13,839‘000

13,928BB market

TI BB ARPU€/month 19.118.9 19.2

-36-51 -41

+23 +18

Fast BB AccessNe

t add

s

CB T

I ret

ail

Net a

dds

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

10MARCO PATUANO


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’14 TIM 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%

145189

1Q'13 1Q'14

+30.4%

+4.9%

Mobile Service Revenuesnet of MTR

11MARCO PATUANO


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

12MARCO PATUANO


Agenda




• Take-Aways

• Appendix

13MARCO PATUANO


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%

293303

-14.9%

+3.5%

+9pp

+13pp

innovative

innovative

Capex Efficiency

493network

€mln, %YoY

+42 -32

-29

-33

-34

-86

innovative traditional ITcommercial &

other subsidy Capex

Efficiency : -94 mln €

14MARCO PATUANO


“Smart” opens the gate to Convergence

Sound take-up rate 1 Accretive on ARPU and KPIs3

1 week 2 week 3 week 4 week 5 week

Avg 15k/week

on-air TV fixed

mob

ile

new line

new

line

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 ensuredcommercial consistency afterpromo phase

2

Unlimited minsvsfixed & mobile10€/m

Mobilevoice

800 mins/m vsfixed & mobile 10€/m

400 min/sms & 2GB 10€/m

SIM Plus

400 min/sms & 1GB 15€/m

15MARCO PATUANO


Commercial Evolution: Sparked-up by Strategic Projects

Mobile Towers

Rebranding

• Valorization of Infrastructure

• “TIM” as one single commercial brand

Strategic Projects

FixedUltra BB

Mobile Ultra BB

• Maximise return on investment

b

Convergentoffers

• Develop triple & quadruple play offersa

c

d

Maximise return on investments

• Strong leadership in connectivity as TI 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, speedand 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

16MARCO PATUANO


Expand Economic Leadership with Fibre

xPositive Commercial

take-up

Geomarketing strategystarted 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

17MARCO PATUANO


• 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 on Telecom Italia IPTV

COMING SOON

• Availability via mobile of SkyTG24 &…more to come!

• Accessibility over mobile of SkyGO and premium sport content with «connectivity embedded”

18MARCO PATUANO


Building new Value from a Rational Mobile Market

Entry level data pack

additional GB additional GB additional GB

+€

+€€

+€€€

price

data

4Gpushes up

data consuption

x

• 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 Italianmarket moved back to rationality on 3G: all the mainoperators 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

19MARCO PATUANO


Focus on LTE: Enhancing First-Mover AdvantangeSm

all S

cree

nLa

rge

Scre

en

% 4G options on 4G

smarthone

% 4G smartphoneon 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 totaltablet/key base

16%

19%22%

27%

dec '13 mar '14

15%16%

8%

15%

dec '13 mar '14

20PIERGIORGIO PELUSO


Agenda




• Take-Aways

• Appendix



1Q14 Net Debt Evolution Euro mln, Reported Data

+493

EBITDACAPEX∆ WC & Others

Operating FCF

(2,200)+684

+1,530

+14

∆ vs. 13

2012 YE

28,274

26,807

2013YEAdjusted

(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)



Focus on Working Capital

SeveranceIndemnities,

Funds & Other

Net OtherReceivables/

PayablesTrade

ReceivablesInventories∆OWC & Other

1Q14

-1,530

-27 -77

-1,065

-333 -28

4.8

4Q13 1Q14

3.7 Includes FISTEL paymentfor ~320M€

1.4 0.7Capex

TradePayables

€ Bln

-1.1

∆OWC & Other1Q13

-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 evolutionBrazil Last 3 YE ∆OWC and Others



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



(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/CommittedGroup 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

7,2871,449

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 TermDebt



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



Brazil Tower deal: Process on track

Non-Binding Offers expected by End of May

• Dynamic Brazilian tower market maintains high attractiveness

• High level of interest shown to TIM 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 of TIM property

TIM tower portfolio



Agenda




• Take-Aways

• Appendix



Telecom Italia Targets

Group Domestic Brazil

Organic data

RevenuesCagr ‘13-’16

StableNegative

Low Single DigitPositive

Mid Single Digit

EbitdaCagr ‘13-’16

StableNegative

Low Single DigitPositive

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 strengtheningexcluding impact from non-organic items and FX. Avg exchange rate: Reais/€ 2.99



Agenda




• Take-Aways

• Appendix



-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 1,0171,159 978

693 523

465 455

47 39

80 76

645 50348 20

Domestic Mobile Revenues Breakdown

total


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

voicefees&other



Domestic Fixed Revenues BreakdownReported, €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%



Customer Care: operating KPIs

+5%

+2%

mar

ket

dyna

mic

sca

ring

prod

uctio

nca

paci

tycr

edit

prod

uctio

n ca

paci

tyFront End

(call)

Back Office (items)

Front End (call)

Back Office (items)

Head

coun

t

«make»«buy»

1° Q. 2014Contribution CS

on selling activities Cons

umer

Ente

rpris

e

1° Q. 2014 managed issue

Consumer: 1,9 mln

Enterprise: 1,1 mln

Sollecit64% qu

ality

(CSI

cus

tom

erca

re)

fixed

mob

ile

FTE

53%

10%

45%20%

75%60%

Access MNP BB ULL SI Cubo ready

59%

13%41%

11%

Access MNP(VoiceMobile)

BB ULL

7.47 7.54 7.64

7.04 7.00 7.05

1° Q. 2013 FY 2013 1° Q. 2014Consumer Enterprise (SME)

8.25 8.29 8.32

7.28 7.41 7.42

1° Q. 2013 FY 2013 1° Q. 2014Consumer Enterprise (SME)

+28%

+12%

1°Q.

201

4

3.94.5

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

15.116.2+7%



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 DebtTotal 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

Economy & Finance

Telecom Italia Group - 1Q 2014 Results