Telecom Italia S.p.A. · MIL:TIT

Telecom Italia — H1 2013 Earnings Presentation

13 slides from Telecom Italia's earnings presentation, Aug 2, 2013

  1. Slide 1: Telecom Italia 1H 2013 Results

    TELECOM ITALIA GROUP 1H 2013 Results Milan, August 2nd, 2013 Telecom Italia 1H 2013 Results PIERGIORGIO PELUSO

  2. Slide 2: Safe Harbour

    TELECOM ITALIA GROUP 1H 2013 Results Safe Harbour These presentations contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements appear in a number of places in this presentation and include statements re

  3. Slide 3: Agenda: 1H13 Net Debt and OFCF

    TELECOM ITALIA GROUP 1H 2013 Results Agenda 1H13 Net Debt and OFCF FY13 Net Debt Target confirmed through additional Debt Reduction Actions Backup PIERGIORGIO PELUSO 2

  4. Slide 4: 1H13 Net Debt Evolution

    TELECOM ITALIA GROUP 1H 2013 Results 1H13 Net Debt Evolution Euro mln, Reported Data 28,274 (1,277) +498 +398 28,813 +835 +85 EBITDA (5,236) CAPEX +2,193 D WC & Others +1,766 Operating FCF (1,277) +539 2012YE Operating FCF Disposals/ Cash Financial Expenses/ Dividends Cash Taxes/Other 1H13 Adjus

  5. Slide 5: 1H13 Operating Free Cash Flow Dynamics

    TELECOM ITALIA GROUP 1H 2013 Results 1H13 Operating Free Cash Flow Dynamics Operating Free Cash Flow 1H13 vs 1H12 Euro mln, Reported Data Revenues 14,793 -1,033 13,760 Opex 8,934 +410 8,524 Capex (2,269) +76 (2,193) Δ WC (1,347) - 419 (1,766) OFCF 2,243 - 966 1,277 1H12 1H13  Operating: -0.5 €bln E

  6. Slide 6: Agenda: FY13 Net Debt Target confirmed through additional Debt Reduction Actions

    TELECOM ITALIA GROUP 1H 2013 Results Agenda 1H13 Net Debt and OFCF FY13 Net Debt Target confirmed through additional Debt Reduction Actions Backup PIERGIORGIO PELUSO 5

  7. Slide 7: 2013 Debt Target and Net Debt / EBITDA YoY Stability Ensured

    TELECOM ITALIA GROUP 1H 2013 Results 2013 Debt Target and Net Debt / EBITDA YoY Stability Ensured Balance to FY13 Adjusted Net Debt target Euro mln NCF* 28,813 Generation 28,274 Additional Actions <27bn 1 Domestic ~ 450 2 DNFP Brazil ~ 280 3 DNFP Argentina ~ 80 FY ‘12 1H ‘13 FY ‘13 Net Debt ~ 2.4x s

  8. Slide 8: Focus on Additional Debt Reduction Actions for ~ Euro 800mln

    TELECOM ITALIA GROUP 1H 2013 Results Focus on Additional Debt Reduction Actions for ~ Euro 800mln Additional Actions Euro mln Domestic ~ 450 Brazil ~ 280 Argentina  Due payments from the ~ 100 Italian Public Administration ~ 80 (Law Decree n. 35 of 2013).  Further optimization DW ~ 200  Further o

  9. Slide 9: Robust Liquidity Margin and Well-Distributed Debt Maturities

    TELECOM ITALIA GROUP 1H 2013 Results Robust Liquidity Margin and Well-Distributed Debt Maturities Euro mln Bonds Loans (of which long-term rent, financial and operating lease payable € 1.271) Drawn bank facility € 6.10 bln Group Liquidity Position + € 6.70 bln Undrawn Portion of Facility/Committed =

  10. Slide 10: Agenda: Backup

    TELECOM ITALIA GROUP 1H 2013 Results Agenda 1H13 Net Debt and OFCF FY13 Net Debt Target confirmed through additional Debt Reduction Actions Backup PIERGIORGIO PELUSO 9

  11. Slide 11: Well Diversified and Hedged Debt

    TELECOM ITALIA GROUP 1H 2013 Results Well Diversified and Hedged Debt Total Gross Debt Net of Adjustment: Euro 36,007 mln Maturities and Risk Management Euro mln Op. Leases and long rent Bank & EIB 1,285 6,259  Average debt maturity: 7.03 years (bond only 8.13 years). Bank Facility Other 3.6% 17.4%

  12. Slide 12: Net Debt /EBITDA YE12 Sector Benchmarking

    TELECOM ITALIA GROUP 1H 2013 Results Net Debt /EBITDA YE12 Sector Benchmarking Reported Data 3.40x 2.70x* 2.44x 2.43x 2.23x 2.17x 2.17x 2.03x** Average 2.18x 1.33x** 0.95x PT KPN TEF TI TKA FT DT VOD BT Belgacom Source: Company data, Credit Suisse. Net Debt adj. per fair value mark-to-market of edgi

  13. Slide 13: Net Debt /EBITDA YE12 Sector Benchmarking As Adjusted per Moody's Methodology

    TELECOM ITALIA GROUP 1H 2013 Results Net Debt /EBITDA YE12 Sector Benchmarking As Adjusted per Moody’s Methodology 3.48x 3.42x* 3.04x 2,92x** 2.82x 2.78x 2.46x Average 2.70x 2.43x 2,33x** 1.27x PT KPN DT BT TEF TI TKA FT VOD Belgacom *KPN: Info pre capital increase. ** BT and VOD net debt/EBITDA is

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