Telecom Italia S.p.A.

Strong “underlying” operating momentum; guidance confirmed (good / key takeaway) - Q2 execution described as “on plan”; full-year 2026 guidance confirmed. - 1H reported: revenues +2.0% YoY to €6.8bn; EBITDA after lease +1.2% YoY to ~€1.8bn. - Main overhang: MVNO transition reduced 1H revenues by ~€80m and EBITDA after lease by ~€84m (treated as *temporary phasing*). - Underlying (excluding MVNO impact): 1H revenue growth ~+3.3%; underlying EBITDA after lease +6.3%. - Profitability trend improved through the quarter: EBITDA after lease went from -2.7% YoY (Q1) to +4.5% YoY (Q2); underlying Group EBITDA after lease accelerated to >+9% YoY in Q2 (domestic ~+8.1%).

Cash generation supported by one-off concession fee; leverage stable (good + notable) - Equity free cash flow (1H): ~€0.7bn, helped by collection of the 1998 concession fee reimbursement. - Q2: concession fee collection just below €1.0bn created ~€660m positive working capital (without it, working capital absorption would have been ~€313m). - Financial charges reduced (optimisation + positive one-off interest component). - Net debt after lease: ~€7.3bn, leverage ~1.94x (stable vs prior quarter).

Capital structure actions + shareholder returns underway (good) - Completed conversion of Savings shares and a reverse stock split (part of a multi-year simplification). - First tranche of share buyback launched in June; buyback cash impact in Q2 ~€48m. - Dividend policy/returns reiterated: distribution target around ~70% of equity free cash flow after lease (and after TIM Brasil minority dividends).