1 Q2/H1 2026 Results 30 July 2026
2 #1 Q2/H1 2026 Results Pietro Labriola, Group CEO Piergiorgio Peluso, Group CFO Q2/H1 2026 Results -30 July 2026
3
TIM Group
Q2 2026
Highlights
Consistent operational delivery, capital structure optimization and shareholder value creation2026 Guidance ConfirmedQ2 R esultsIn line with
expectationsPERFORMANCE
Saving shares conversion Completed Reverse stock split CompletedCAPITAL STRUCTURE
SHAREHOLDER VALUE
Share buybackFirst tranche
completed
Credit ratingUpgraded
by Moody’s, Fitch and S&P‘98 Concession Fee Cashed -in Sparkle disposal In progress
4 H1 ‘26 Results in line with expectations including MVNO phasing
FIGURES MAY NOT ADD UPDUE TOROUNDINGS
(1)Group figures ataverage exchange -rate YTD 6.01R$/€.Excluding non-recurring items and exchange rate fluctuations (2)Adjusted Net Debt After Lease /LTM Organic EBITDA After Lease (3)TIMBrasil S.A.
reported EBITDA ALgrowth of7.8%reflects thedifferent accounting treatment ofthe renegotiated sale-leaseback contracts with American Tower, recorded asEBIT atTIM Group level and asoperating income (benefiting EBITDA) under Brazilian GAAP (IFRS Brasil )Organic figures ex Sparkle , €bn and YoY trend(1)
EBITDA AL
minus CAPEXRevenues
EBITDA
After Lease
CAPEXEq. FCF
After LeaseNet Debt
After Lease
0.9 bn
+0.9%1.8 bn
+1.2% (+6.3% ex. MVNO)0.9 bn 12.6% on revenues0.7 bn7.3bn 1.94x leverage (2)
0.5 bn
-5.3%0.9 bn
-2.5% (+ 7.1% ex. MVNO)0.5 bn 10.6% on revenues
0.5 bn
+7.5%2.3 bn
+6.0% 0.9 bn +5.5% (3)0.4 bn 16.6% on revenuesService +2.1%
(+3.5% ex. MVNO)
Service +0.1%
(+2.1% ex. MVNO)
Service +6.1%Group Domestic Brazil2-3% growth6.8 bn
+2.0%(+3.3% ex. MVNO)
1-2% growth4.6 bn +0.2% (+ 2.0% ex. MVNO)5-6% growth ~4% growth<14% on rev.
~12% on rev.Below committed max lev. of 1.7x~1.8bn incl.
‘98 concession fee FY ‘26 guidance
5 Q2 ‘26 performance improved QoQ notwithstanding MVNO impact
1,4%2,7%
-0,9%1,2%
Q1 '26 Q2 '26Revenues
EBITDA
After Lease
-2,7%4,5%
-8,2%2,3%
Q1 '26 Q2 '263,1%3,5%
1,5%2,4%
Q1 '26 Q2 '26
4,1%8,1% 4,5%9,1%
Q1 '26 Q2 '26ex. MVNO
Revenues and EBITDA AL improving in line with expectations, FY guidance confirmedFurther acceleration expected in H2 driven by:
▪MVNO stabilization
▪TIM Consumer price up
campaign
▪TIM Enterprise favourable seasonality in Q4 ▪Cost transformation delivery
6 TIM Consumer -Top line mainly impacted by MVNO phasing Organic figures, €bn and YoY trend
32,433,0
Q2 '25 Q2 '26
1,2% 1,2%1,6% 1,6% Q2 '25 Q2 '26Fix.2.9bn -2.7% ( -2.4% in Q2), flat YoY ex. MVNO Services -2.9% ( -3.9% in Q2), flat YoY ex. MVNORevenues TIM
Consumer
10,6 10,6
Q2 '25 Q2 '26H1 ‘25
+2.0%
+0.5%▪Repricing campaign : Consumer 2.5m fixed + 1.0m mobile lines / SMB 0.3m fixed + 0.4m mobile
lines
▪Launch of TIM Priority to drive future ARPU
growth
▪TIM Vision revenues continued growth , gearing for start of 2026 -27 football season ▪FWA roll -out speeding up… ▪Fixed net adds and churn negatively affected by Fibercop low service quality , in breach of minimum standards set in the MSAH1 ‘26 Q2 '25 Q2 '26+4.7%o/w FTTHo/w FWA 5GNet adds
MNP89 8512 32
Silent SIMs
clean -up392≃(53)
Q2 '25 Q2 '26TIM
ConsumerH1 ‘25
▪Repricing campaign : Consumer 3.3m fixed + 2.1m mobile lines / SMB 0.3m fixed + 0.4m mobile lines ▪Launch of TIM Priority to drive further ARPU growth thanks to enhanced services and assistance ▪TIM Vision revenues steady growth , gearing for start of 2026 -27 football season ▪Continued fixed ARPU growth and push on FTTH and FWA 5GH1 ‘26
Fixed ARPU
Consumer, €/month
32,433,0
Q2 '25 Q2 '26
1,2% 1,3%1,5% 1,5% Q2 '25 Q2 '26Fix.Mob.Churn Consumer, monthly averageKPIs
10,7 10,7
Q2 '25 Q2 '26Mobile ARPU Consumer, Human calling, €/month+2.0%Fixed net adds Consumer, k linesTIM Vision
Service revenues
Q2 '25 Q2 '26+7.1%o/w FTTHo/w FWA 5GNet adds Mobile net adds Consumer, k lines
(103) (122)
(510)(107)(63)(11) 1 3 (11) (14)
Q2 '25 Q3 Q4 Q1 '26 Q2MNP79592942
Silent SIMs
clean -up≃(53) (76)
Q2 '25 Q2 '26
392Retail services -0.8% ( -2.0% in Q2) reflecting higher fixed -line churn, Wholesale affected by MVNO phasing
7 ▪Cloud : Very solid growth, confirmed #1
revenue driver
▪Connectivity: Slightly negative YoY, in line
with expectations
▪Positive Security & IoT performance offsetting the planned reduction in low -
margin IT sales1.7bn +5.6% (+7.9% in Q2) Services +5.7% (+7.1% in Q2)Revenues TIM
EnterpriseKPIs
H1 '25 H1 '2633%
-1,2% YoY
22%
-4,7% YoYH1'25 H1'261.5x
35% 24%Service revenue mix Weight on tot. and YoY changeH1 ‘26 45% +18,1% YoY 41%Cloud Other IT Connectivity Change in revenue mix % of service revenues
65% 67%
H1'25 H1'26Connectivity
ITRevenues from NSH (1) (1)National Strategic Hub (2)Revenues from signed contracts tobedelivered2025 2026e4.0> 4.5Contracts backlog (2) Total value, €bnTIM Enterprise -Growth trajectory driven by Cloud services
Colocation
Licensing
Fix
Mobile
Security & IoT Other ServicesServices Organic figures, €bn and YoY trend
8 (1)Average exchange -rate YTD @6.01R$/€ (2)IPCA LTM +4.6%Revenues TIM
BrasilEBITDA AL CAPEX
▪H1/Q2 results in line with plan , revenues and EBITDA AL growing above inflation (2) ▪EBITDA AL growth and CAPEX discipline driving continued
cash generation
▪TIM S.A. minority shareholders remuneration: €63 m in Q2 ‘262.3bn +6.0% (+5.5% in Q2) o/w services +6.1% (+5.8% in Q2)0.9bn +5.5% (+6.6% in Q2)0.4bn 16.6% on revenues (13.4% in Q2) Growth supported by renewed ‘more for more’ proposition and expanded service ecosystem , leveraging the I-Systems acquisition in the BB segment and the integration of V8 in the B2BH1 ‘26
KPIs
Mobile ARPU
R$/month
+5.0%
32,7 34,3
Q2 '25 Q2 '261.998 2.1001071342.1052.234
H1 '25 H1 '26Service Revenues €m
Mobile Fixed
+5.1%+6.1%TIM Brasil -Confirming operational excellence Organic figures, €bn and YoY trend (1)
PrepaidPostpaidM2MMobile CB
m lines
49% 46%40% 42%11% 12%62,2 61,9
Q2 '25 Q2 '26+24.8%EBITDA AL -CAPEX
0.5bn
+7.5% (+6.9% in Q2)
9
Group OPEX
(1)Weight onDomestic OPEX excluding capitalized costs and other income1.734 1.752556 5842.287 2.331
Q2 '25 Q2 '26
comparable baseDomestic Brazil
weight(1)
+8% -2%
-2% -3%
+7%53%
47% 14%
29% 4%
MSA accounting for 20% of Domestic OPEX, lower YoYRevenue driven
Addressable costs
o/w labor
o/w industrial
o/w G&A & ITΔ YoY
+1.0%+1.9%Group CAPEX
Net of licences
241 286152161393447
Q2 '25 Q2 '26
comparable baseDomestic Brazil
Customer driven
Mobile & backbone IP IT
Data Centers
Other20%
36% 12%
17%
15%weight
+18.7%+13.7%
▪Domestic OPEX increase mainly due to higher revenue driven costs notwithstanding lower network and labour costs ▪TIM Domestic energy cost hedging : ~80% in 2026, ~50% in 2027 ▪TIM Brasil OPEX increasing in line with inflation and mainly driven by higher content costs▪Group CAPEX in line with expectations, Domestic trajectory more balanced compared to prior year. Domestic YoY increase in Q2 driven by higher investments on Mobile and backbone IP and Data
Centers
▪Group CAPEX margin at 12.7 % of revenues (Domestic 12.3%)CAPEX and OPEX control Organic figures ex. Sparkle, €m
+4.9%
+6.0%
10
6.8547.290 7.285558
660(98) (79) 1.041
(61)(692)(240) (48)5
NFP AL
EoP '25NFP AL
Q1 '26EBITDA AL
minus
CAPEXChange in
NWCFinancial
chargesCash taxes
& OtherEFCF AL TIM Bra
minoritiesSaving
shares
conversionI-Systems
acquisitionShare
BuybackOther NFP AL
H1 '26
(1)Adjusted NetDebt After Lease /LTM Organic EBITDA After Lease (2)Including netcash flow from discontinued operations1.94x 1.86xCash Flow and Net Debt evolution in line with expectations Adjusted Net Debt After Lease, excluding ‘98 Concession Fee, Sparkle discontinued, €m
Leverage (1)
Incl. € 973m of ’98 Concession fee reimbursement
1.99x
(2)
11 11
#2Strategic Considerations
Pietro Labriola, Group CEO Q2/H1 2026 Results -30 July 2026
12 Lights and shadows of current trading environment
LIGHTS SHADOWS
Customer platform & data monetization From simple connectivity to customer platform, monetizing data and customer relationships, with increasing upselling opportunities and low-cost roll -outDeteriorated service quality by main fiber provider Fixed net adds and churn negatively affected by worsening service
quality
Reduced mobile market churn volumes Stabilizing mobile market with lower volumes of churn and mobile -
number -portability, paving the way for premium services and pricingVAT Regulatory change extending the VAT split payment regime for PAs, with implications on working capital dynamics
Digital sovereignty
Enterprise market evolving towards integrated solutions across Cloud, Cybersecurity, and AI infrastructure under the new sovereignty paradigm, unlocking new opportunities for TIM EnterpriseEnergy costs Increasing chances of “higher for longer scenario”, with reducing effectiveness of hedging (1) (1)TIMDomestic energy cost hedging :~80%in2026 ,~50%in2027
13 ▪Valuation analysis based on management’s 2026 –‘30
projections
▪Projections derived from the 2025 –‘27 Plan , updated for the BoD in Jul. 2026 ▪Projections fully consistent with market -disclosed strategic / financial ambitions , reflecting targets that the market had historically viewed as challenging (1)Excluding non-recurring items, change inconsolidation area and exchange rate fluctuations (2)Seedisclaimer slide #21 (3)2024 -‘27CAGR (4)Annual exchange -rate published inBloomberg Survey based onmajor banks projections (2026 avg.exchange rate @6.54R$/€) (5)Annual exchange -rate published inBloomberg Survey based onmajor banks projections (2027 avg.exchange rate @6.14R$/€) (6)Adj.
NetDebt AL/Organic EBITDA After Lease .NetDebt ofTIMBrasil based onconsensus exchange rate evolution (2026 EoP exchange rate @6.13R$/€,2027 EoPexchange rate @6.05R$/€)TIM standalone guidance confirmed Organic P&L figures (1), €bn, YoY growth and 2024 -‘27 CAGR
TIM standalone
valuation framework
Revenues
o/w Domestic
EBITDA AL
o/w Domestic
CAPEX on revenues
o/w Domestic
Eq. FCF After Lease Leverage13.7 (+2.7% YoY)
9.5 (+1.9% YoY)
3.7 (+6.5% YoY)
2.0 (+5.1% YoY)
13.9%
12.4%
0.7 bn
1.86xactual
13.7
9.4 3.6
1.9
14.6%
12.9%
N.m.
<2.0xactual
2-3% growth
1-2% growth
5-6% growth
~4% growth
<14%
~12%
~1.8bn (4)
Below committed max lev. of 1.7x (6)~1.1bn (5)~3% CAGR (3)
2-3% CAGR (3)
6-7% CAGR (3)
5-6% CAGR (3)
~13%
~11%
5.83 R$/€ Avg. exchange rate (P&L figures) 6.31 R$/€2-3% growth
1-2% growth
~7% growth
5-6% growth
~14%
12-13%
~0.5bn
<1.90xguidanceFY ‘25
guidance(2) guidance(2)FY ‘24 FY ‘26 FY ‘27
14 TIM’s plan assumptions on a standalone basis Towers▪Pending outcome of ongoing legal dispute:
–INWIT MSA confirmed until 2030 –Exit starting in 2030, parallel migration on TIM/ Fastweb JV + TowerCosINWIT MSA confirmed until 2030
Spectrum
renewal▪Renewal in 2029 with no re -allocation among operators , outlay related to i) licence fee or ii) coverage commitment or iii) mixed renewal schemeOutlay from 2029 Netco▪No change in the current MSA pricing framework ▪No merger/strategic deal between FiberCop and Open Fiber Constant MSA prices
Poste synergies
TIM standalone▪Confirmed in line with Feb. ‘26 disclosure:
-Impact on MVNO service revenues of € ~100m/year @run -rate -Impact on EBITDA AL of € ~50m/year @run -rateMaterial synergies
from 2028
Market repair ▪Scenario with no market consolidation Not included
Shareholders’
remuneration▪~70% of Equity FCF AL after dividends to TIM Brasil minority shareholders IncludedEarnout not included
15 A 5-year journey transforming TIM from a pure TelCo into a future -proof TechCo A clearly -identified and consistently -executed strategy … …that unlocked value transforming TIM into a financially -disciplined, well-balanced portfolio… New BoD & Management team2022 2023 2025 -‘26 2024 Delayering plan NetCo disposal Plan reaffirmed Successful turnaround of TIM Consumer Unparallel growth of TIM Enterprise Cash generation enhanced in Brasil and reinstated in Italy Concession Fee fully cashed -in Guidance achieved every year Credit rating upgrades Shareholders’ remuneration reinstated Extend value proposition to adjacent sectors (e.g. Defence) New connectivity needs (wearables, connected cars,…) Integrate AIin current offering and service model Exploit Data Centers ’leadership… with solid foundations to successfully address new industry opportunities and trends
Beyond 2026
16
Closing
remarksSame destination, different speed
TIM standalone
Disciplined executionTogether with Poste
Accelerated execution,
broader optionality
and lower riskThe next chapter will determine how far and how fast that journey can goReflected both the financial fairness of the consideration and the strategic benefits of combining TIM's assets and capabilities with Poste's industrial platform, effectively de-risking the delivery of TIM's long -term objectivesTIM BoD’s recommendation on Poste’s offer Q2/H1 2026 Results -30 July 2026
17 Q&A
Q2/H1 2026 Results -30 July 2026
18
Annex
Q2/H1 2026 Results -30 July 2026
19 Q2 ‘26 Results in line with expectations including MVNO phasing Organic figures ex Sparkle , €bn and YoY trend(1)
EBITDA AL
minus CAPEXRevenues
EBITDA
After Lease
CAPEXEq. FCF
After LeaseNet Debt
After Lease
0.6 bn
-2.0%1.0 bn
+4.5% (+8.1% ex. MVNO)0.4 bn 12.7% on revenues1.0bn7.3bn 1.94x leverage (2)
0.2 bn
-11.8%0.5 bn
+2.3% (+9.1% ex. MVNO)0.3 bn 12.3% on revenues
0.3 bn
+6.9%1.2 bn
+5.5% 0.5 bn
+6.6%0.2 bn
13.4% on revenuesService +2.0%
(+2.8% ex. MVNO)
Service flat
(+1.2% ex. MVNO)
Service +5.8%Group Domestic Brazil3.5 bn
+2.7% (+ 3.5% ex. MVNO)
2.3 bn
+1.2 % (+2.4% ex. MVNO)
FIGURES MAY NOT ADD UPDUE TOROUNDINGS
(1)Group figures ataverage exchange -rate YTD 6.01R$/€.Excluding non-recurring items and exchange rate fluctuations (2)Adjusted NetDebt After Lease /LTM Organic EBITDA After Lease
20 (1)Netoftheadjustment due tothefairvalue measurement ofderivatives and related financial liabilities and discontinued operations (2)Nominal amount .Average maturity :6yearsCapital structure
65%35%
Fixed Floating
0,11,31,5
1,01,53,162%21%16%1%
EUR USD BRL Other72%23%5%
Bonds Bank & EIB Other€ 10bn Gross Debt AL (1) by
currencyby
interest rate€ 2.2bn Liquidity by
type48%52%
Cash & cash equivalent Marketable Securities 2026 ‘27 ‘28 ‘29 ‘30 BeyondCovered beyond 2030Bonds LoansDebt maturities (2) Avg cost of debt YTDby
type
€ 5.2bn Liquidity margin5,5% 5,7% 5,8% 5,9% 6,3% 6,3% 4,7% 4,7% 4,7% 4,7% 4,9% 4,9%12,8%14,5% 14,7%15,9%13,9% 14,6% Q1 '25 Q2 Q3 Q4 Q1 '26 Q2 '26Group Italy Brasil€ 3.0bn Credit facilityBa1↑
StableMoody’s
BB+ ↑
StableS&PBB+↑
StableFitch2026 credit rating
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Disclaimer
This presentation contains forward -looking statements regarding theTIMGroup’s objectives, beliefs, current expectations, strategic priorities, business outlook, financial performance and prospects .Such statements are based onmanagement’s current expectations and assumptions considered reasonable asofthedate hereof .
Forward -looking statements arenotguarantees offuture performance and involve known and unknown risks, uncertainties and other factors, many ofwhich arebeyond thecontrol oftheTIMGroup .Actual results, performance orachievements may differ materially from those expressed orimplied inthese statements due toavariety offactors, including changes inmarket conditions, competitive dynamics, regulatory developments, macroeconomic conditions, technological evolution and other risks affecting theGroup .
Based ontheresults achieved during thefirst half of2026 ,TIMconfirms itsfinancial guidance forFY2026 and FY2027 .The financial outlook presented herein reflects management’s current expectations based ontheupdated 2025 -’27standalone Business Plan considered bytheBoard ofDirectors in connection with itsassessment ofthepublic tender offer .
Except asrequired byapplicable law, TIMundertakes noobligation toupdate orrevise any forward -looking statements contained inthis presentation toreflect events orcircumstances occurring after thedate hereof .
Analysts and investors arecautioned not toplace undue reliance onthese forward -looking statements, which speak only asofthe date ofthis presentation .Further information ontheprincipal risks affecting theTIMGroup isavailable intheTIMGroup Annual Report 2025 .
The H12026 and Q22026 Financial Results have been prepared inaccordance with theInternational Financial Reporting Standards (“IFRS ”)issued by theInternational Accounting Standards Board and endorsed bytheEuropean Union .
The accounting policies and consolidation principles adopted inthepreparation oftheH12026 and Q22026 Financial Results areconsistent with those applied intheTIM Group Annual Audited Consolidated Financial Statements asof31December 2025 ,except fornew standards, amendments and interpretations effective from 1January 2026 .The H12026 and Q22026 Financial Results areunaudited .
Alternative Performance Measures Inaddition tothefinancial measures prepared inaccordance with IFRS, theTIM Group uses certain Alternative Performance Measures (“APMs”) to provide investors with additional information forassessing theGroup’s operating performance and financial position .These measures include, among others, EBITDA, EBIT, Organic Change and impact ofnon-recurring items onRevenue, EBITDA and EBIT ;EBITDA margin and EBIT margin ;Net financial debt (carrying and adjusting amount) ;Capital expenditures (net ofTLC licenses) ;Operating Free Cash Flow (OFCF) and Operating Free Cash Flow (Net oflicenses) .Moreover, following theadoption ofIFRS 16,theTIMGroup uses thefollowing additional alternative performance indicators :EBITDA after lease (“EBITDA -AL”), Adjusted Net Financial Debt After Lease and Equity Free Cash Flow After Lease .These APMs should not beconsidered as substitutes formeasures prepared inaccordance with IFRS and may notbecomparable with similarly titled measures reported byother companies .
Such alternative performance measures areunaudited .
Unless otherwise specified, figures areexpressed inmillions ofeuros, rounded tothenearest million .Any discrepancies between totals and subtotals aresolely attributable torounding effects and donotaffect thesubstance ofthefinancial information presented .▪Inthe TIM Group H12026 and FY2025 Financial Results, Sparkle hasbeen classified, inaccordance with IFRS 5,asDiscontinued Operations ,as the related disposal is considered highly probable .
▪Accordingly, unless otherwise specified, the TIM Domestic perimeter excludes Sparkle .
▪Cash Flows and Net Debt After Lease are presented onanactual basis ,including Sparkle .
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Further questions
please contact the IR team