Telecom Italia S.p.a. · MIL:TIT
Telecom Italia — H1 2009 Earnings Presentation
23 slides from Telecom Italia's earnings presentation, Aug 6, 2009
Slide 1: Domestic Business Unit revenue performance in first half 2009
The Domestic Business Unit, for which the representation by new commercial business has been provided below, has suffered the overall impact of a downbeat market in the first half of 2009 with mixed results – on the one hand, the fixed telephony business has confirmed its positive trend, and on the
Slide 2: EBIT, net result and capex for first half 2009
EBIT is € 2,680 million , an increase of €105 million compared with the first half of 2008 ( +4.1% ). Organic variation in EBIT has been negative for €55 million ( -1.9% ). EBIT/revenues ratio moved from 17.4% in the first half of 2008 to 19.2% in the first six months of this year; at an organic lev
Slide 3: Operating cash flow and net financial debt
In 1H 2008, capex comprised €477 million for the buying of mobile telephony licences pertinent to the 3G business in Brazil. The Capex reduction was also impacted by the effect of the Reais/Euro (- €39 million) exchange rate, and by the effects of the investment and cost rationalization undertaken i
Slide 4: Consolidated Statements of Comprehensive Income
TELECOM ITALIA GROUP - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME According to IAS 1 revised ( Presentation of Financial Statements ), which is effective from January 1, 2009, here below are presented the Consolidated Statements of Comprehensive Income, beginning with the Profit for the period,
Slide 5: Consolidated Statements of Financial Position
TELECOM ITALIA GROUP – CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Slide 6: Consolidated statement of financial position table
(millions of euros) 6/30/2009] 12/31/2008 Change| Restated (a)] (by (eb) ASSETS NON CURRENT ASSETS: Intangible assets Goodwill aa077 ao1 Ta6 Intangible assets with a finite useful life 6345, 6,492 (147) 50422 29 Tangible assets Property, plant and equipment owned 13861 14,252 (ana) Assets held under
Slide 7: Consolidated Cash Flow Statements
TELECOM ITALIA GROUP – CONSOLIDATED CASH FLOW STATEMENTS
Slide 8: Cash flow statement table
Ast Half] Ast Hat {milions of euros) 2003| 2008 Restated (GASH FLOWS FROM OPERATING ACTIVITIES: Proft fam continuing operations oH 2258 Adjustments for Depreciation and amortisation 2307 295 Impairment losses (reversals) on non-currenk assets neluding ive stine 5) 47 tt Net change in deferred tox as
Slide 9: Adjusted Consolidated Net Financial Debt
TELECOM ITALIA GROUP – ADJUSTED CONSOLIDATED NET FINANCIAL DEBT
Slide 10: Information by Operating Segments
TELECOM ITALIA GROUP – INFORMATION BY OPERATING SEGMENTS
Slide 11: Domestic
DOMESTIC it Hah st Half {mito of euros) boos toe Change amount | % % organic Revenues 10,881 14381 (500) aay a7 EBITDA 5044 4597 ia7 30 28) 3eoF Revenues 463 430 EeIT 274d 2645 66 25 a7 36oF Revenues 249 252 Capital expenditures 1808 1952 (343) are) Headcount at period-end (number) 64,003 © 84816 (8
Slide 12: Domestic — Core Domestic segment
DOMESTIC — Core Domestic segment st Hah st Hal {milion of euros) toe toe Change amount | % % organic Fevenues T0337 TOEED GIs) Te Sy Consumer 5,542 5937 (403) (63) (68) Business 4911 2,092 (281) (a7) (a7) Top 2816 4.872 (66) (30) (30) National Wholesale 74 232 143 172 158 Other 22 108 (26) (248) (24
Slide 13: Domestic — International Wholesale segment
DOMESTIC — Intemational Wholesale segment st Hah st Hal {milion of euros) toe toe Change amount | % % organic Revenues aT SOL Tay BA ay of which thireparty revenues 595 590, 5 08 EBITDA 184 187 By wey BS) 3eoF Revenues 240 20.8 EeIT Tis 122 7 cal a) 3eoF Revenues FEF 138 Capital expenditures 3 78 a7
Slide 14: Domestic — Revenues details Fixed lines / mobile
DOMESTIC — Revenues details Fixed lines / mobile (milion of euros) Tet Hair 2009 st Half 2008 Chenge 03) Ficed Mobile Ficed Mobile Ficed | Mobile Business segment is sl Consumer Sees 2552 34st] S47 2,700 3800 ea) AD Business ao11 4,971 672 | 2002 4418 745 (a7) (40a) 16.0) Top ae16 i450 40a) 4724490
Slide 15: Brazil
BRAZIL, {milion oF euros) Ast Halt Ast Halt Tilions of reais) Ast Halt Ast Halt 2009 2008 2009 2008 Change (a) ) ic) (@) | amount % | % (ea | ceaya | organic Feveniies REE] 2eaT ToT ya CL a 2! EBITDA, 527 521 Lea, Lasgo dai 56 oF Revenues 229 20.5 228 20.5 EET 37 er 07 tase i 36 of Revenies 16 (i) 1
Slide 16: European Broadband
EUROPEAN BROADBAND (millions of eures) TE far] ast Hair chonge amount % Revenues 613 642 (23) G5) EBITDA, 128 113 10 aa 56 oF Revenues BLO 138 EIT Oo) 2 a 7 56 oF Revenues 5) 03 Capital expenditures i28 188 es) 38a) 2r7e| 0) 2842, asa) wa Headcount at period-end (number) {() Headcount at December 34
Slide 17: Non Organic Items: EBITDA and EBIT Reconciliation
TELECOM ITALIA GROUP – NON ORGANIC ITEMS: EBITDA AND EBIT RECONCILIATION
Slide 18: Historical EBITDA
HISTORICAL EBITDA Effect of change in scope of consolidation Effect of change in exchange rates Norrorganie (income) expenses Expenses for mobility agreements under Law 223/92 Disputes and settlement Costs for senvices of the Brazil business unit, associated with the settement of @ dispute Other exp
Slide 19: Debt Structure, Bond Issues and Expiring Bonds
TELECOM ITALIA GROUP - DEBT STRUCTURE, BOND ISSUES AND EXPIRING BONDS With reference to the evolution of the bonds during the first half 2009, we point out the following events:
Slide 20: Bonds expiring in the following 18 months
The total nominal repayment amount, net of the Group’s bond buy-back, related to the bonds expiring in the following 18 months as of June 30, 2009 issued by Telecom Italia S.p.A., Telecom Italia Finance S.A. and Telecom Italia Capital S.A. (fully and unconditionally guaranteed by Telecom Italia S.p.
Slide 21: Effects arising from the application of IFRIC 13
TELECOM ITALIA GROUP – EFFECTS ARISING FROM THE APPLICATION OF IFRIC 13 (CUSTOMER LOYALTY PROGRAMMES) ON THE MAIN SEPARATE INCOME STATEMENTS AND STATEMENTS OF FINANCIAL POSITION DATA IFRIC 13 was accounted for retrospectively in accordance with IAS 8 and led to the restatement of the separate consol
Slide 22: First Half 2008 restatement impact
TF Halr 2008 Impact {mito of euros) Hiswrical —(pimeSs Restated Revenues 14,838 (23) 44,80 Acquistion of goods and serves (6,810) (4) (6,614) ‘AMORTIZATION, CAPITAL GANS (LOSSES) AND IMPARMENT REVERSALS (LOSSES) ON NON-CURRENT ASSETS (EBITDA) 5,535 33) 5,502 ‘OPERATING PROFTT(EBIT) 2608 3) 2575 PROF
Slide 23: Cautionary Statement for Purposes of the Safe Harbor Provisions
Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the United States Private Securities Litigation Reform Act of 1995. The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward - looking statements. This Press Release contains certain forward -lookin