Telecom Italia S.p.A. · MIL:TIT

Telecom Italia — 9th Deutsche Bank Italian Conference 2008

23 slides from Telecom Italia's conference presentation, May 29, 2008

  1. Slide 1: Telecom Italia

    TELECOM ITALIA 9th Deutsche Bank Italian Conference Milan, May 29th, 2008 Telecom Italia ENRICO PARAZZINI, CFO

  2. Slide 2: TI Group – 1Q '08 Key Financial Results

    TLCne-051027-P1 TELECOM ITALIA 9th Deutsche Bank Italian Conference TI Group – 1Q ’08 Key Financial Results € Mln 1Q ‘08 1Q ‘07 YoY YoY reported reported* reported organic** Highlights Domestic revenues mainly affected by regulatory Revenues 7,298 7,475 -2.4% -4.0% discontinuities (€ 260 mln). Inter

  3. Slide 3: TI Group: debt structure as of March 31st, 2008

    TLCne-051027-P2 TELECOM ITALIA 9th Deutsche Bank Italian Conference TI Group: debt structure as of March 31st, 2008 Total gross debt: € 42,877 mln (1) Maturities and risk management € mln 11,688 Other Non Current Liabilities (*) € 5.3 bln liquidity position, plus further € 6.5 bln of which € 3.0 bln

  4. Slide 4: TI Group: medium-long term debt Maturity profile as of March 31st, 2008

    TLCne-051027-P3 TELECOM ITALIA 9th Deutsche Bank Italian Conference TI Group: medium-long term debt Maturity profile as of March 31st, 2008 Bonds Loans (of which Long rent & financial and op. leasing 2.047) Drawn bank facility (1) 16.653 40.054 1.500 € mln 3.000 Matched by: € mld 5,3 + 6,5 = 11,8 Li

  5. Slide 5: Telecom Italia

    TELECOM ITALIA 9th Deutsche Bank Italian Conference Milan, May 29th, 2008 Telecom Italia FRANCO BERNABE′, CEO

  6. Slide 6: Agenda

    TLCne-051027-P5 TELECOM ITALIA 9th Deutsche Bank Italian Conference Agenda TI Strategic Outlook Domestic Business: TI Value Approach International Activities 5

  7. Slide 7: Building the Foundation for Growth

    TLCne-051027-P6 TELECOM ITALIA 9th Deutsche Bank Italian Conference Building the Foundation for Growth Throught a trasformation process... ...Growth 2008 2010 ASSETS KEY DECISIONS RESULTS Strong Domestic Concentrate on quality as a Stabilise and possibly increase value driver Market Position ARPU in

  8. Slide 8: Maintaining a strong financial discipline

    TLCne-051027-P7 TELECOM ITALIA 9th Deutsche Bank Italian Conference Maintaining a strong financial discipline Targets 2008-2010 Raise cash from non strategic assets Alice France disposal by 2008 BB coverage by 2010: Fixed: 90% Adsl2, 8% NGN Mobile: 85% High Speed 3G Select investments on payback per

  9. Slide 9: And improving efficiencies through

    TLCne-051027-P8 TELECOM ITALIA 9th Deutsche Bank Italian Conference And improving efficiencies through Implementation of a new lean organization Strict cost control Cash cost reduction plan already identified Cash Cost reduction 2008–2010: 1.2 Bn € Access 0.3 B€ IT 0.55 B € Network 0.15 B€ Technical

  10. Slide 10: An Evolving Industry – Constraints and Opportunities

    TLCne-051027-P9 TELECOM ITALIA 9th Deutsche Bank Italian Conference An Evolving Industry – Constraints and Opportunities Market Saturation New Competitors Strict Regulatory Constraints on Traditional coming from Environment Services Adjacent Sectors New Growth Expansion in Opportunities New Addressa

  11. Slide 11: Consolidate and Transform Domestic Business: Focus on Share of Wallet

    TLCne-051027-P10 TELECOM ITALIA 9th Deutsche Bank Italian Conference Consolidate and Transform Domestic Business: Focus on Share of Wallet Market Value TI Strategic Objectives First Results 1Q '08 Bln€ CAGR ‘07-’10 Uptake of IPTV: 136K Grow in digital content customers (+56K vs Dec. ’07) distributio

  12. Slide 12: Agenda

    TLCne-051027-P11 TELECOM ITALIA 9th Deutsche Bank Italian Conference Agenda TI Strategic Outlook Domestic Business: TI Value Approach International Activities 11

  13. Slide 13: Stabilizing the trend in fixed traditional business…

    TLCne-051027-P12 TELECOM ITALIA 9th Deutsche Bank Italian Conference Stabilizing the trend in fixed traditional business… Italian fixed access market Telecom Italia traffic and Mkt Sh* Mln access lines bln min; TI Voice traffic* TOTAL MARKET 22.7 22.7 22.6 22.6 22.5 Direct 6.7 6.7 6.6 6.7 6.7 Accs(2

  14. Slide 14: Value based BB strategy boosts growth

    TLCne-051027-P13 TELECOM ITALIA 9th Deutsche Bank Italian Conference Value based BB strategy boosts growth Retail Broadband Portfolio BB Arpu ‘000 Access lines €/month +658 Target Broadly stable Target Broadly Stable ~ 7,000 18.0 17.9 ~ 18 5,883 6,541 Business 1,141 1,338 Consumer 5,203 4,742 Mar-07

  15. Slide 15: TIM: defended leadership in most valuable market segments

    TLCne-051027-P14 TELECOM ITALIA 9th Deutsche Bank Italian Conference TIM: defended leadership in most valuable market segments Customer Base Market Share** ARPU* Δ YOY (vs 1Q ’07) Δ vs YE ‘07 Gap vs 2° player Enterprise 1.8X 62.9% +0.2pp +1.5pp +34.0 pp SME 51.9% +0.3pp -0.1pp +11.8 pp Business 2.3X

  16. Slide 16: TIM Brand re-positioning: closer to our customers

    TLCne-051027-P15 TELECOM ITALIA 9th Deutsche Bank Italian Conference TIM Brand re-positioning: closer to our customers Tim brand re-positioning New format launch Identification & Discontinuity and innovation attract attention and Aspiration curiosity + More emotions, lower focus on the “product” to

  17. Slide 17: Voice: TIM Community & High Valuable customers drive usage rebound

    TLCne-051027-P16 TELECOM ITALIA 9th Deutsche Bank Italian Conference Voice: TIM Community & High Valuable customers drive usage rebound Bln. Minutes* 12.4 Successful commercial focus on key strategic segments: Total 10.5 +17.5% Business: ~0.6 mln lines TIM affare Fatto & Tutto 3.5 Compreso Professio

  18. Slide 18: A Successful Mobile Internet Strategy

    TLCne-051027-P17 TELECOM ITALIA 9th Deutsche Bank Italian Conference A Successful Mobile Internet Strategy An increasing customer base A value-added business mln lines Target 2.6 +63% 1.4 0.8 >2x ARPU Mar ‘07 Mar ‘08 FY ‘08 Average Mobile Internet Customer Customer ADimensioni di Valore strong reven

  19. Slide 19: Agenda

    TLCne-051027-P18 TELECOM ITALIA 9th Deutsche Bank Italian Conference Agenda TI Strategic Outlook Domestic Business: TI Value Approach International Activities 18

  20. Slide 20: HanseNet: 1Q '08 progress on strategic priorities

    TLCne-051027-P19 TELECOM ITALIA 9th Deutsche Bank Italian Conference HanseNet: 1Q ‘08 progress on strategic priorities Market Results Operational Excellence Gross adds continue in line with previous Since March service levels show strong quarter (253k); overall BB net growth suffered performance due

  21. Slide 21: TIM Brasil: investing for the future

    TLCne-051027-P20 TELECOM ITALIA 9th Deutsche Bank Italian Conference TIM Brasil: investing for the future Maintaining aspirational, innovative brand attributes Marking the market Stable market share: 25.9% share in an increasingly competitive environment Leader in gross adds: ~26% share thanks to pr

  22. Slide 22: TIM Brasil: convergent offer roadmap

    TLCne-051027-P21 TELECOM ITALIA 9th Deutsche Bank Italian Conference TIM Brasil: convergent offer roadmap 2005 2006 2007 2008 TIM total lines (mln) 32.5 31.3 25.4 TIM Web Banda 20.2 Larga: wireless broadband solution TIM Casa Flex: convergent voice plan combining a fixed and mobile number on the sam

  23. Slide 23: TIM Brasil: main performance drivers

    TLCne-051027-P22 TELECOM ITALIA 9th Deutsche Bank Italian Conference TIM Brasil: main performance drivers Revenues - mln R$ IAS/IFRS YoY Organic Promotions on traffic to drive on-net usage and M-F calls on a “hot 3,183 +4.7% spot” basis: 3,040 Outperforming market adds in target areas 252 252 2,644

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