TI 3Q’13 Results & 2014-16 Plan Outline - Gruppo TIM · 2021. 7. 4. · TI 3Q’13 Results &...
Transcript of TI 3Q’13 Results & 2014-16 Plan Outline - Gruppo TIM · 2021. 7. 4. · TI 3Q’13 Results &...
0
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia Group
TI 3Q’13 Results & 2014-16 Plan Outline
1
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
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 regarding
the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and
the global business, market share, financial results and other aspects of the activities and situation relating to the Company and the
Group.
Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results
may differ materially from those projected or implied in the forward looking statements as a result of various factors. Consequently,
Telecom Italia S.p.A. makes no representation, whether expressed or implied, as to the conformity of the actual results with those
projected in the forward looking statements.
Forward-looking information is based on certain key assumptions which we believe to be reasonable as of the date hereof, but
forward looking information by its nature involves risks and uncertainties, which are outside our control, and could significantly affect
expected results.
Analysts are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this
presentation. Telecom Italia S.p.A. undertakes no obligation to release publicly the results of any revisions to these forward looking
statements which may be made to reflect events and circumstances after the date of this presentation, including, without limitation,
changes in Telecom Italia S.p.A. business or acquisition strategy or planned capital expenditures or to reflect the occurrence of
unanticipated events. Analysts and investors are encouraged to consult the Company's Annual Report on Form 20-F as well as
periodic filings made on Form 6-K, which are on file with the United States Securities and Exchange Commission.
The accounting policies and consolidation principles adopted in the preparation of the Condensed Consolidated Financial Statements
as of, and for the nine months ended, 30 September 2013 have been applied on a basis consistent with those adopted in the Annual
Consolidated Financial Statements at 31 December 2012, to which reference can be made, except for the new standards and
interpretations adopted by the Group, which, other than for the prospective adoption of IFRS 13 ( Fair Value measurement), didn't
impact on the Condensed Consolidated Financial Statements as of, and for the nine months ended, 30 September 2013.
Some data for the first quarter 2012, used in comparisons, included into this presentation have been restated as a result of the early
adoption, starting from the first half 2012, of the revised version of IAS 19 (Employee Benefits) and the reclassification of Matrix
(company that was disposed of on October 31, 2012) from the Business Unit Domestic–Core Domestic to the Business Unit Other
Activities.
2
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Agenda
TI 3Q’13 Results & Progress Report
TI 2014-2016 Plan Outline
Appendix
3
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia Group results
Group Revenues
Group Ebitda
Group Net Income
Net Debt
3Q’13 9M’13
6.6 €bln Organic: -1.1%- YoY
Reported: -8.8%- YoY
2.7 €bln
Organic: -7.1% YoY
Reported: -10.1% YoY
0.5 €bln -27.4% YoY
28.2 €bln;-1.3 €bln YoY
20.4 €bln Organic: -2.1% YoY
Reported: -7.6% YoY
8.0 €bln Organic: -6.9% YoY
Reported: -10.5% YoY
-0.9 €mln writedown -2.2 bln € (accounted in 1H)
Organic data,
€mln, %YoY
4
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia performance by markets
Revenues
Ebitda
Ebitda-Capex
Group Domestic Brazil
20.4 €bln -2.1% YoY
8.1 €bln -6.9% YoY
4.6 €bln -15.9% YoY
12.1 €bln -10.0% YoY
6.0 €bln -10.9% YoY
4.0 €bln -16.3% YoY
5.3 €bln +7.3% YoY
1.3 €bln +2.0% YoY
0.3 €bln -25.9% YoY
Argentina
2.9 €bln +23.7% YoY
0.8 €bln +17.5% YoY
0.4 €bln +4.5% YoY
Weight
Weight
Weight
59% 26% 14%
74% 17% 10%
86% 7% 8%
9M’13
Organic data,
€mln, %YoY
5
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
3.090 2.598
1.639
1.362
9M'12 9M'13
1.333 1.345
649 677
9M'12 9M'13
Domestic performance dashboard
9.055 8.104
4.361 3.965
9M'12 9M'13
-9.1%
-10.5%
13,416 12,069
-10.0%
3Q
1H
Revenues Ebitda
4.423 3.943
2.288 2.039
9M'12 9M'13
3Q
1H
-10.9%
-10.9%
-10.9% 6,711 5,982
on revenues 50.0% 49.6%
Capex Ebitda-Capex
3Q
1H
3Q
1H
1,982 2,022 +2.0% -16.3% 4,729
3,960 +4.3%
+0.9%
-16.9%
-15.9%
Organic data,
€mln, %YoY
6
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Mobile KPIs
Total SIM cards Active SIM cards
TIM MNP Balance Highlights
32,1 32,2 31,9 31,7 31,6
2Q'12 4Q'12 1Q'13 2Q'13 3Q'13
+36 -152 -152 -301
‘000, QoQ
-157
-127
-74
+78
-12 -12
April May June July Ago Sept
Op.2 Op.3 Op.4 Cum.
-0,1
+0,2
-0,6
-0,2
+0,2
2Q'12 4Q'12 1Q'13 2Q'13 3Q'13
• slight reduction in Mobile SIM cards due to strictly
disconnection policies
• improved trends in active CB set the groud to better
forthcoming results
• MNP: Positive balance in the last quarter, due to effective
summer strategy on Consumer Segment . Gross flows
reduction put less pressure on prices
• while guard on competition is kept high, TIM's focus is shifting
to LTE roll-out pace and related services adoption, enabled by
p/l-wise smartphone strategy
mln, QoQ
7
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Moving back to a more rational market behavior
Convergence
Premium offer
Pure price
1Q'13 2Q'13 3Q'13 4Q'13
market
offers entry level
price
market
offers
1 2
3 4
less content on
entry level price
15
€/month
10
€/month
increasing price on
most important offers
>400 min/sms & >1GB
1
3
2
4
Rational approach by TIM, maintaining price
premium gap versus pure price operators.
Fighting on ‘no price' levers, launching TIM
Sconta e Raddoppia offer and paving the way for
an attack strategy.
TIM sharp reaction via frontal attack, through
TIM Special proposition, the most competitive &
rich offer in the market for the entry level price.
Market awareness of need to preserve P&L.
Bundle size reduction (min., SMS & giga) on
entry level plans, both by TIM and main
competitors.
8
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Mobile Revenues
Revenues Service Revenues Trend
Innovative vs Traditional Service
Organic data,
€mln, %YoY
1.335
1.159
168
121
81
88
3Q'12 3Q'13
business generated
business received
service 1,503
1,280
handsets
total 1,584
1,368 +8.2%
-13.1%
-13.6%
-14.8%
-28.1% -17,9%
-18,3%
-14,8%
1Q'13 2Q'13 3Q'13
€mln
-35
-27
+1
1Q'13 vs 1Q'12 2Q'13 vs 2Q'13 3Q'13 vs 3Q'12
D YoY Browsing Revenues plus SMS Revenues
9
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Fixed KPIs
Fixed Access Line Losses Trend
Fixed BB Access BB Revenues Perfomance & Arpu Trend
14.133 13.978 13.777 13.555 13.372
7.063 7.175 7.238 7.233 7.164
3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
21,195 21,153 21,016 20,788 20,536
OLO
TI
reta
il
M/S 65.3% 64.0% 63.5% 63.4% 64.6%
-43
112 63
-5 -69
3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
-144 -155 -201 -222 -183
OLO
TI
reta
il
OLO
TI
reta
il
7.030 7.020 6.984 6.933 6.892
6.630 6.737 6.828 6.872 6.866
3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
M/S 51.5% 50.6% 50.2% 50.1% 51.0%
13,660 13,757 13,812 13,805 13,758
+107 +44 -6 +91
-10 -51 -41 -36
18,6 18,9 18,9 19,1 19,2
3Q'12 4Q'12 1Q'13 2Q'13 3Q'13A
rpu +3.7%
+3.4% +3.6%
+3.5%
BB
serv
ice
reve
nues
+0,0%
+1,8% +1,5% +1,4% +1,1%
3Q'12 4Q'12 1Q'13 2Q'13 3Q'13
€/month, %YoY
10
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Fixed Revenues
Total Revenues Total Revenues Trend
Service Revenues Trend Highlights
Organic data,
€mln, %YoY
3.070
2.849
62
49
3Q'12 3Q'12
-20.1%
-7.2%
3,132
2,898
-7.5% equipments
service
equip
me
nts
se
rvic
e
-17,3% -11,5%
-20,1%
1Q'13 2Q'13 3Q'13
-7,5%
-8,1%
-7,2%
Improving trend in fixed service revenues due to:
positive performance in Internet revenues
better results in business data, driven by
growing ICT trend
Sparkle's top-line growth
-9,1%
-7,8%
-9,8%
+1,7% +1,3% +1,2%
-1,9%
-6,8%
-0,7%
1Q'13 2Q'13 3Q'13
fonia reported internet business data
-9.3% normalized for price revision
on F-F termination rate
11
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia is keeping the pace of its
2013-15 Ultra-Broadband Development
Programme, aiming a Year-end targets of:
~4 million of households passed by the
end of 2013
more than 15% of population covered
~40 service-enabled municipalities
Major increase in the roll-out programme
for LTE network
As of September, a total of 300
municipalities in Italy covered by the
service, equivalent to more than 37% of
the population nationwide
TIM is the leader across all operators in
LTE coverage in Italy
TI Ultra-Broadband 2013 progress: a fast- forward coverage plan
NGN LTE
12
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
FY13 Net Debt Target Confirmed
9M12
Balance to FY13 Adjusted Net Debt Target Euro mln
2011YE FY12
30,414 (1,211) (929) 28,274 29,485
(2,140)
<27bn
FY ‘13
28,229 NCF
Generation
Includes Less cash taxes Working capital
optimization Higher FCF from
Latam
2012YE
28,274 (45)
Includes 1H13 impacts from One-offs for 0.5 bln € (4Q12 suppliers payment deferral and Brazil spectrum payment)
9M ‘13
13
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
410
1.413
1.313
875
994
921
2.082
8.008
1.481
1.809
2.035
2.250
2.897
2.990
11.740
25.202
1.500
1.500
1.891
4.722
3.348
3.125
3.891
3.911
13.822 34.710
Within 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Beyond 2018 Total M/L Term
Debt
(1)
(1) € 34.710 mln is the nominal amount of outstanding medium-long term debt . By adding IAS adjustments (€ 856 mln) and current liabilities (€ 500 mln), the gross debt figure of € 36.066 mln is reached N.B. Debt maturities are net of € 1.830 mln (face value) of repurchased (€ 1.206 in the 2013) own bonds (of which € 1.615 mln related to bonds due within 2015)
Robust Liquidity Margin and Well-Distributed Debt Maturities
Loans (of which long-term rent, financial and operating lease payable € 1,305) Drawn bank facility Bonds
13.45
6.70
6.75
Liquidity Margin Debt Maturities
Undrawn Portion of Facility/Committed Group Liquidity Position
Euro bln Euro mln
14
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Agenda
TI 3Q’13 Results & Progress Report
TI 2014-2016 Plan Outline
Appendix
15
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Macro & Industry Context
Italy Brazil
GD
P
TLC
se
rvic
e V
alu
e
35%
65%
2013 2016
Value
26%
74%
innovative
traditional
26 €bln 24 €bln
18%
82%
innovative
traditional
39% 61%
Value 117 R$bln 120 R$bln
2013 2016
Source: Sirmi, PoliMi and internal analysis
-1,8%
+0,8%
+1,4% +1,5%
2013 2014 2015 2016
Source: ISTAT & Prometeia
+2,4%
+2,3%
+2,4% +2,4%
2013 2014 2015 2016
Source: BaCen
16
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Italy
Telecom Italia Group: a strong INDUSTRIAL STORY aimed at delivering our
financial targets
Long Term FCF
Sustainability
stra
tegic
opti
ons
evolve into the
new TLC
business
model in order
to stabilize
top line
keep-up
growth eff
icie
ncie
s &
eb
itda
invest
men
ts
dele
vera
ge
Brazil
17
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Announced Extraordinary Transactions
Financial Contribution
Expected by 2014
Mandatory Convertible Bond
Telecom Argentina Disposal
Further assets available for value creation (towers
in Italy and Brazil, TI Media Broadcasting)
Done 1.3 € bln
>2 € bln*
Material increase of financial flexibility: Above 4 € bln
* Estimated Cash proceeds. The overall treatment of the transactions will be subject to IFRS rules.
960 US$ mln Contract Signed
18
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Brazil
Telecom Italia Group: investing to enable the new TLC model
Italy strong increase in UBB
for a structural
differentiation
keep the pace on quality
increase focus on
innovative components
to capture the full
potential of data
changing the mix between innovative and
traditional capex to sustain faster UBB
deployment and move to adjacent sectors
delayering network architecture to gain
operational flexibility, reduce running costs and
lift the business model agility
accessing to public funds (“Anti- Digital Divide”
& “EuroSud” Programs) to accelerate fiber
deployment in black & grey areas
increase network capex to fully serve 3G now and
progressively 4G. Higher focus on network
infrastructure and efficiency in terms of quality and
coverage
continuous deployment of fiber (FTTS) to support
data traffic growth
full deployment of RAN sharing opportunities
19
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Focus on domestic investments: a faster Ultra-BB deployment
Why Speed-up?
UBB Willingness To Pay
Digital Agenda and Public Bids
lever on adjacent sectors
develop Fiber & LTE in unison
path
New NGN Plan
New LTE Plan
~ 35%
2016
Old NGN Plan ‘13-'15
2015 2014 2013
New NGN Plan ‘14-'16 New Coverage(1)(2) Targets
2015: +5pp vs old Plan
2016: >50% in 2016
(1) coverage population, (2) including public funds, (3) Cagr'12-'17; Cisco
& A.T Kearney Analysis
80%
~40%
60%
2013 2014 2015 2016
Already reached
New Coverage(1) Targets
2015: ~+10pp vs old Plan
2016: x2 vs 2013
Why Speed-up?
preserve a sound leadership in
Mobile UBB
rapid growth of smartphone &
tablets will drive high data
usage(3): +75% of video, +62%
of gaming & +34% in file sharing
20
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
2013 2014 2015 2016
technology IT, Commercial & other
Growing innovative portion of domestic investments
Domestic Capex
3.0
55% >60%
€bln,%
increase Technology
expenditure share on
total domestic
reduction of running
operations
expenditures
reduction of
non-Technological
investments
around 9 €bln Domestic Capex in the Plan horizon
+ +
~3.4 €bln of innovative
capex in ‘14-'16 Plan(1)
vs ~1.3 €bln in ‘13-'15 Plan
(1) including public funds
efficiency in non high-tech spending
21
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Tim Brazil Strategy is set for Infrastructure Evolution
MASSIVE LD
BACKBONE
FIBER TO
THE AMAZON
Fiber to the Site / Mobile Broadband Project Key to
Data Growth
Targeting 38 cities in 2013,
100+ cities till 2016
From 2-8 to 100+ Mbps
LTE Ready
Macro coverage fine tuning
Focus on IP infrastructure,
caching, peering
INTELIG
ACQUISITION
New backbone routes - Increasing resilience.
Increased Coverage & Access Capacity # new elements
82% urban
population
2013 2014 2015 2016
95% urban
population
#NodeB / eNodeB
(3G + 4G)
# BTS (2G)
2012 2013e 2014e 2015e 2016e
New Sites
Including
Small Cells
POP MW
POP MW POP MW
POP MW
BSC-RNC Site
POP MW
2013 2014 2015 2016
LTE* 3G 2G
Backhauling Evolution
Fiber Base Infrastructure Growth
2009 2013 2016
INTELIG
15.000KM
46,000 KM OF
FIBER BY YE13
65,000 KM OF
FIBER
Capex Evolution Towards Data % of total Capex
Small Cell Approach # new elements
*Includes 2.5 GHz RAN Sharing
22
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic top line stabilization
traditional
innovative
digital Life &
new revenue
streams
stabilize
the trend
foster
growth
exploit new revenue
streams
M/S defence in a more rational TLC arena
Focus on TI+TIM distinctive convergent approach
Clients segmentation and traffic flatization
Purchasing Groups monetization (Families, Corporates,
Employees)
F-M convergence
Lever on multidevice approach and foster on BYOD
strategy to accelerate penetration on business segment
Faster UBB development
Enrich UBB with video content
Entertaiment
Advertising
Cloud & M2M
Digital PA & e-health
Consumer Business
x
23
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
x
x
x
TI’s new fully convergent approach on Consumer Segment
3Play
nPlay
voice voice
communication
& pure
connectivity
additional TLC
services
content &
entertaiment IT service
equipments &
handsets
x
x
x
x
x
x
SIM
x
SIM
+
upgrade to Ultra Broadband connectivity
broadband
x
x
x
24
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
TI&Sky: a strategic partnership for value creation
2013 2014 2015 2016
pay-DTT satellite OTT video
Pay-TV Market
~3bln€
Source: Analysis Mason
Over the next 5 years, a wider adoption of OTT video
services will be occured due to the availability of 3.0
platform and «media streamers»
The Italian pay-TV market is worth approximately 3 €bln
and its value and number of lines growth are fully due
to over-the network service provided by TLC operators
x
Telecom Italia & Sky
agreement will allow TI and
TIM customers to follow next
year some of major Sky sports
events on smartphone, tablets
and PCs by BB and UBB
networks
cross selling of mobile services
together with TV contents
increasing loyalty and CB
profiling
CB expansion via upselling of
TLC services towards adjacent
contents market
25
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
60%
40%
Total Households Households which does NOT possess
71%
65%
59%
48%
39%
24%
18%
12%
5%
2%
1%
1%
R$ 10
R$ 20
R$ 30
R$ 40
R$ 50
R$ 70
R$ 80
R$ 100
R$ 150
R$ 200
R$ 250
> R$ 250
Possess Internet connection
Do NOT Possess Internet connection
24.5 Mln
36.8 Mln
Too Expensive
Lack of Coverage
Other
44%
16.2 Mln
24%
8.8 Mln
32%
11.8 Mln
53% of active connection
base has currently a speed
below 2 Mbps
The Brazilian Data Opportunity: The Quest for Internet has a Mobile response
61.3 Mln
Willingness to pay (% of Households)
CA
BLE
FT
TH
AD
SL
VD
SL
MB
B
Market Data Revenues Growth 2016 vs. 2012
>13 bn Reais on Mobile (+100%)
>7 bn Reais on Fixed (+35%)
Source: CETIC´13
26
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia Group opex efficiency Plan
Italy milestones for further
operating efficiencies
leaner organization,
focus on internal
processes and strict
cost control
foster and streamline through a stronger divisional
responsibility
industrial costs optimization
enhance multi-channel approach and careful SAC
policy tightly linked to revenues
increase productivity also through process
internalization
zero based-budget model on G&A costs
commercial: low SAC, keeping payback
(SAC/ARPU) under control and bad debt stable
at low levels
network: increasing MOU with stable leased
lines costs. Proprietary infrastructure
deployment. RAN sharing opportunity.
Brazil
27
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Focus on domestic opex savings
cumulated efficiency
-1,0
-0,4
-0,4
-0,2
2016
2015
2014
€bln
cum.
‘14-’16
3,0
1,2
1,6
2,7
2013 2014 2015 2016
volume/revenues driven(1) market/customer driven(2)
process/asset driven(3) personnel costs
8.5
opex breakdown by cluster
(1) COGS: interconnection, COGS, other COGs
(2) COMMERCIAL COST: customer acquisition, ADV, customer management, other commercial costs
(3) INDUSTRIAL COST & G&A COST
+0.1 €bln
-0.1 €bln
-0.5 €bln
-0.5 €bln
breakdown by year
28
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Agenda
TI 3Q’13 Results & Progress Report
TI 2014-2016 Plan Outline
Telecom Italia targets
Appendix
29
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Telecom Italia Targets
Group Domestic Brazil
Organic data
Revenues Cagr ‘13-’16
Stable Negative
Low Single Digit
Positive
Mid Single Digit
Ebitda Cagr ‘13-’16
Stable Negative
Low Single Digit
Positive
Mid Single Digit
Capex(1)
Cum. ‘14-’16 <14€bln
Net Debt Adj
/Ebitda 2016(2) ~ 2.1x(3)
Capex/Revenues
~ 18%
Capex/Revenues
~ 17%
(1) excluding spectrum
(2) reported EBITDA
(3) including announced equity strengthening
excluding impact from non-organic items and FX. Avg exchange rate: Reais/€ 2.99
30
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
TIM Part: 2014-2016 Guidance
Total
Net Revenues
EBITDA
CAPEX
18,8
2012 2013e 2014e 2015e 2016e
5,0
2012 2013e 2014e 2015e 2016e
R$ billion
R$ billion
0,5
3,2
2012 2013e 2014e 2015e 2016e
R$ billion
Infrastructure
Other/Licenses
3.8
Guidance
2013-2016 CAGR:
Mid Single Digit Growth
2013-2016 CAGR:
Mid Single Digit Growth
Total CAPEX 2014-2016:
> R$11 billion*
*Does not consider 4G licenses (700Mhz).
31
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Agenda
TI 3Q’13 Results & Progress Report
TI 2014-2016 Plan Outline
Appendix
32
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic 3Q check list
Co
nsu
mer
Bu
sin
ess
W
ho
lesa
le
Ca
sh C
ost
s
Fixed
Mobile
Fixed
Mobile
Domestic
Int’l
Ebitda
Capex
What we said What we did
Continued support from Value Strategy on ADSL. Initial take-up from Fiber
adopters. Further contribution from monthly rental fee repricing and price
simplification.
YoY gap narrows-in on the back of positive support from CB recovery, milder
competitive arena and more favourable MTR comparison. Focus on
“Convergence”, Mobile UltraBB and “Segments” (e.g. Ethnic and Young ).
Negative impact by new regulated prices also in 2H.
Crash program on Opex.
Extention of site sharing Agreement with other large Mobile Operator.
Continued improvement on third-party agreeements. Flattish YoY
performance expected in the last part of the year.
Investments in new technologies go ahead, as early take-up phase
builds momentum.
Introduction of «Tutto» dual-play yields impressive take-up rate
(~250k clients by end-October), successfully responding to a
market/industry/technology changed in pattern of voice traffic. Fixed
repricing ensured stability on access revenue stream.
Active mobile CB was up about 200k QoQ; TIM's effective
commercial strategy forced market into a more rational competitive
game
Kept focus on cost control, in order to maintain best in class Ebitda
margin level among EU peers.
90% of FY'13 Capex target efficiency, notwithstanding high level of
investments in the Country
Fiber commercially launched in 33 Cities & more than 40% LTE
coverage as of today
The effect of regulated price revision occurred in July still drives the
YoY performance in Domestic Wholesale
New Sparkle's third-party agreements took place in September.
Revenues improvement confirmed with positive contribution in the
last quarter: +0.6% YoY in 3Q vs -13.1% YoY in 2Q and -18.4% YoY in
1Q13
Full convergent & modular offers launched in the market: dual-play
«Tutto» and triple-play «Tutto + Insieme» are showing positive
performances and CB stabilization, preventing pure price war effects.
Launch of flexible and innovative bundles (BB F/M + ICT services)
Focus is kept on innovative services (ICT & Cloud), leveraging for Soho / SME
Continuing development of new streams of business, mainly IaaS and PaaS
Mantain «value acquisition per line» strategy and defend ARPU through
upselling.
Leveraging on «BYOD» concept to accelerate penetration and increase
innovative services adoption.
33
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Latam 3Q Check List
Bra
zil
Arg
enti
na
Network
Net Adds & M/S
Quality & Regulation
Marketing
Fixed
Mobile
Regulation
Network
Key Drivers Take-aways
Progress in the deployment of the MBB/FTTS Project
MBB Targeting 38 main cities by YE13 from previous 14.
New backbone routes and HLR centrals
Initiating small cell coverage
Leadership in customer net adds in 9M (+2.5mln)
Increase in owned stores
Strong mass sales channel performance
4G: Prudent strategy in the auction & efficient roll-out paying-off
Continuous focus on Customer Care Performance
Focus on network development
Strong rebound in commercial performance started in 2Q
Great success in “Black” profile
Innovation in offerings supported the revenue trend, ensuring
superior relative performance
Maintaining solid data services growth
Keeping the Innovative Approach
New offer consolidation (Web+SMS, “Seu Troco”, Itz Calls)
Focus in service quality improvement and continuous mobile
network expansion to increase coverage and capacity.
Proceed with “MBB Cities” deployment
Enhancing network access and quality
Reducing leased lines dependency and costs
Smartphone approach to support data usage growth, with
EBITDA neutral impact (“Zero-Subsidy Policy”)
Handsets sales are setting the base for upselling MBB
customer base
Increasing postpaid CB 16% YoY and also mix over CB (16.4%
from 14.8% in 3Q12)
Low SAC and Payback (SAC/ARPU) under control
4G: 28% of Mkt Share (#2) in September
High customer care performance and lower complaints
(Anatel ) KPIs reached
Fixed and BB net adds back to positive for 2 quarters in a row
ARPU BB increased by 22% YoY at 121 AR$/month in 9M
New Data, SMS and Voice bundle to increase usage/penetration
while defending traditional service Revenues
TEO #1 in smartphone sell-out
Improving brand preference in Youth segment
Continuous FTTx deployment to enrich value proposition
Quality of Service: new set of procedures for fixed/mobile
operators to monitor network and customer care' s quality
The new regulatory regime was announced in June but the
technical implementation procedures are expected to be issued
by CNC by end of November
34
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
465 537
213 259
9M'12 9M'13
1.543 1.890
762
962
9M'12 9M'13
Argentina
+26.0%
+22.5%
2,305
2,852 +23.7%
3Q
1H
Revenues Ebitda
3Q
1H
+21.4%
+15.5%
+17.5% 678
796
on revenues 29.4% 27.9%
Capex
3Q
1H
315
417 +32.4%
+59.4%
+15.5%
Organic data,
€mln, %YoY
Highlights
200 231
115
186
9M'12 9M'13
• Mobile Revenues (+26.7% YoY in 9M): mobile internet (+59%
YoY) and strong handset sales (+51% YoY) sustain growth.
Impressive Personal net adds in 3Q (~550K vs. 9M:+880K)
• Fixed Revenues (+15.8% YoY in 9M): positive net-adds trend
started in 2Q and accelerated in 3Q (BB:+35K, fixed lines
+10K)
• EBITDA margin at ~28%, decreasing by 1.5pp YoY in 9M (-
1.0pp YoY in 3Q). Strict cost control to mitigate higher labor
costs and taxes associated to revenues
• Focus on network quality upgrade. Capex-to-sales at 14.6% in
9M (+1pp YoY)
35
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
The Regulatory Environment
Italy Brazil
WHOLESALE PRICING
Decisions about 2013 copper access prices are still under the scrutiny
of the European Commission. Final decision is expected around the
turn of the year
Decision on 2014/2016 prices (by May-June 2014) expected to
increase copper and to decrease fiber prices
RETAIL PRICING FLEXIBILITY
More flexibility in pricing, particularly relevant for the deployment of
the plan, is an expected regulatory development
NETWORK SEPARATION
The project of voluntary separation is ongoing and will start focusing
on EoI through a functional separation
This approach is compliant with Kroes Recommendation and
represents a European best practice
EUROPEAN REGULATION IS PROMOTING PREDICTABILITY AND
SUPPORTING TO LONG TERM INVESTMENT
The recent European Commission draft regulation, aimed at promoting
a European single market, fully endorses and further develops “Kroes
Recommendation” approach
The proposal, if adopted, will positively affect telecommunications
markets by enhancing regulatory predictability and investments
incentives
WHOLESALE PRICING
Cost Modeling: ongoing consultation for a cost-based model of 2016
wholesale reference prices (fixed and mobile interconnection, leased
lines)
WACC: Public Consultation open to set ANATEL's methodology
Wholesale Replicability: Public Consultation to develop a Retail Minus
approach
Light Pole Sharing: introduces reference price
SPECTRUM AND COVERAGE
4G RAN Sharing TIM/Oi: The 4G extension agreement with Oi (besides
the starting 12 cities already planned) will be defined and filed in the
next days at CADE
700MHz: very challenging roadmap to conclude technical and
regulatory bid procedures before June 2014
Coverage Obligations Roadmap
CONSUMER PROTECTION AND QUALITY
Quality Improvement Plan: focus on Network performance Indicators
with increasing local granularity
Service, Billing and Offers (public consultation): new procedures for
costumer relations.
36
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
N.B.The figures are net of the adjustment due to the fair value measurement of derivatives and related financial liabilities/assets, as follows: - the impact on Gross Financial Debt is equal to 1,835 €/mln (of which 500 €/mln on bonds) - the impact on Financial Assets is equal to 877 €/mln Therefore, the Net Financial Indebtedness is adjusted by 958 €/mln
Well Diversified and Hedged Debt
Euro mln
Total Gross Debt net of Adjustment: Euro 36,066 mln
Gross debt 36,066
Financial assets (7,837)
of which C & CE and marketable securities (6,747)
C & CE (5,456)
Marketable securities (1,291)
Italian Government Securities (1,028)
Other (263)
Net Financial Position 28,229
3.7% Op. Leases and long rent 1,319
5.4% Other 1,979
15.7% Bank & EIB 5,652
4.0% Bank Facility 1,446
71.2% Bonds 25,670
Maturities and Risk Management
Cost of debt: 5.4%
Average debt maturity: 7.03 years (bond only
7.89 years)
Fixed rate portion on gross debt approximately
67.3%
Around 42% of outstanding bonds (nominal
amount) is denominated in USD, GBP and YEN
and is fully hedged
37
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic top line: Traditional Services in the Consumer Segment
innovation price distinctiveness & QoS
less commoditization
approach on traditional
services
reducing total gross
acquisition market
less MNP exposure
focus on segmentation:
taylored offers for key
specific clusters
M&F convergence
focus on loyalty
new caring model
multichannel
~28%
2013 2014 2015 2016
stable market share
value drivers
defend pure fixed voice
line
focus on all inclusive &
unlimited offers
taylored offers for key
specific clusters
M&F convergence
focus on loyalty
new caring model
multichannel
50%
2013 2014 2015 2016
stable market share
tra
dit
ion
al
mo
bile
tra
dit
ion
al
fixe
d
moving to a fully convergent approach with
one single commercial brand
Lever on:
38
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
2013 2014 2015 2016
mobile fixed
Domestic top line: Innovative Services in the Consumer Segment
inn
ova
tive
mo
bile
dig
ita
l life
&
ne
w r
eve
nu
es
stre
am
s
innovation price distinctiveness & QoS
more value for Giga
add-on approach for LTE
offers
shared data plans
increasing penetration of
smartphones and tablets
data-only SIM &
multidevice strategy
strategic agreements
with content providers
video & music premium
contents
premium quality connectivity
High-speed MB: LTE & 42
Mb/s
x
value drivers
BB customer base Cagr
'13-'16
+3%
2013 2014 2015 2016
small screen large screen
+20%
VAS OTN (content) on serv. revenues
‘16 vs ‘13
~5X
Inn
ova
tive
fixe
d lever on BB lines
acquisition
enrich Fiber offers
multidevice strategy
lever on innovative
service enablers:
multiscreen/multiroom
premium quality for Video
& Gaming
Ultra-BB Speeds
x
2013 2014 2015 2016
Cagr
'13-'16
+7%
premium offers included
into bundle
exclusive agreement with
primary content provider
Cubo suite platforms
(music, video, books,…)
innovative services for
targeted segments
connected home
‘16 vs ‘13
~2X
moving to a fully convergent approach with
one single commercial brand
Lever on:
39
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic top line: Business segment – Fixed & Mobile
tra
dit
ion
al
fixe
d &
mo
bile
inn
ova
tive
fixe
d &
mo
bile
IC
T
innovation price
unlimited F-M offers and
new bundled solutions
focus on convergence
further push on flat
tariffs
customer base value
stabilization through
defense via value-for-
money approach
customer base growth
through B2B2C
keep focus on «BYOD»
strategy
lever on LTE and focus on
small screen
multidevice strategy
convergent approach
develop new propositions and
increase penetration of Cloud
services
cloud OTT and core services
bundle solutions
opening to new partnerships
with Saas/S.I. leaders
lever on advanced caring
models and innovative
loyalty programs
keep outstanding CSI ratios
best-in-class model
adoption on provisioning,
billing and assurance for
cloud OTT services
distinctiveness & QoS
bundle propositions
development with SLA
premium services and
full infrastructure
outsourcing
x
value drivers
2013 2014 2015 2016
services products
Revenues ICT Cagr
'13-'16
+2%
+7%
50%
2013 2014 2015 2016
market share
fixed
mobile
BB revenues: flat fixed
mobile +10% MBB clients
(large&small)
innovative services (Cagr ‘13-'16)
protect revenues on
traditional IT services
Lever on:
40
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Brazil snapshot: we don’t forget voice,
whilst we’ll bring data on board
strong growth
in market
share
still a lot of value in fixed to mobile substitution
focus on quality
postpaid continuous growth, better customer mix.
continuous offer evolution backed by innovative DNA.
fixed-segment revenue to stabilize by mid-2014
inn
ova
tive
x
tra
dit
ion
al
Brazil shows an unsatisfied internet appetite
focus on coverage strenghthening
3G for now, 4G is coming
work on quality
lever on smartphone as data penetration enabler
41
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Mandatory Convertible Bond
On November 8 2013 Telecom Italia Finance has successfully completed the issuance of a Mandatory Convertible
subordinated bond into Telecom Italia S.p.A. ordinary shares (“Telecom Italia”). Main terms & Conditions:
Issued Amount: €1.3bn
Maturity: November 2016
Coupon: annual 6.125% (with right of coupon payment postponement at Issuer's discretion)
Settlement date: November 15th, 2013
Guarantor: Telecom Italia S.p.A.
Mandatory Conversion: into Telecom Italia ordinary shares, subject to approval of a capital increase from TI's EGM within
the end of February 2014
Conversion ratio: minimum and maximum price shall be respectively €0.6801 and €0.8331. The maximum number of TI
shares to be issued to serve the conversion is 1.911.483.605 ordinary shares
Other conversion: always subject to EGM's approval of a capital increase to serve the transaction, upon occurrence of
certain events, certain accelerated and/or voluntary conversion events are foreseen, at the Issuer's / Holder's option
Cash payment: should TI's EGM not approve the capital increase related to the transaction, the Issuer shall have the
option to repay in cash the subscribers
Use of Funds: General Corporate Purposes, without the possibility to finance and / or guarantee Telecom Italia
Governing Law: UK
Listing: on a regulated market or on an internationally recognized multilateral trading system, within March 15th 2014.
42
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Sale of Telecom Argentina: Contract signed Milan, November 14, 2013
Pursuant to the mandate of its Board of Directors, Telecom Italia has accepted during the night the offer of Fintech Group
for the acquisition of the entire controlling interest of Telecom Italia Group in Telecom Argentina, held by it and through its
subsidiaries Telecom Italia International, Sofora Telecomunicaciones, Nortel Inversora and Tierra Argentea, for an aggregate
consideration of USD 960 million.
Of this amount, USD 859.5 million will be paid as consideration for the sale of*:
- 68% of the voting shares in Sofora held by Telecom Italia and Telecom Italia International, (USD 750.8 million);
-15,533,834 Class B shares of Telecom Argentina, representing 1.58% of the outstanding shares, held by Tierra Argentea,
(USD 61.2 million);
- 2,351,752 American Depositary Shares, representing 117, 588 Preferred B shares of Nortel, equal to 8% of the Preferred B
shares held by Tierra Argentea, (USD 47.5 million);
The remaining USD 100.5 million will be paid pursuant to additional agreements related to the transaction, including an
agreement to continue providing the Telecom Argentina companies technical support and other services for up to three
years, the waiver by Telecom Italia of certain rights under, as well as amendments to, the current shareholders' agreement
relating to Telecom Argentina with the Werthein Group who will retain 32% of the voting shares of Sofora, and commitment
Fintech to pay amounts already reserved for dividends by Telecom Argentina, if such dividends are not declared and paid by
the Telecom Argentina Group prior to closing.
Telecom Italia Group has received certain guarantees of performance under the agreements, including the pledge by
Fintech of American Depository Shares representing Preferred B shares of Nortel, in a number equivalent to an initial
average market value of USD 100 million.
*: The sale of the Class B shares of Telecom Argentina and the Nortel American Depository Shares held by Tierra Argentea is expected to occur before year end, whilst the
sale of the Sofora shares is conditional upon obtaining certain required regulatory approvals.
43
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Other assets available for value creation worth, in aggregate, more than € 2 bln
Tower lease (Italy and Brazil)
TI forerunner in passive infrastructure sharing - initiated 10 years ago in order to reduce costs
The goal is now to enhance and extract value from tower asset base, also reducing focus on “non core” passive elements of the network
Main non captive network operator in the Italian market
Potential synergies (efficiencies, broadening of our portfolio, better allocation of bandwidth capacity)
1st phase integration between TIMB and Rete A, retaining control of the combined entity
2nd phase sale of a stake of the company (up to 100%) to a third party investor
Multiplex sale
+
Perimeter: Italy: more than 10k owned towers
Brazil: more than 7k owned towers
No active network component
Perimeter: TI Media Broadcasting:
assignee of 3 MUX - 65.4 Mbps capacity DTT platform (812 sites, 95% of Italy's population)
Gruppo Espresso - Rete A: assignee of 2 MUX - 47 Mbps capacity DTT platform (427sites, 90.9% of Italy's population)
44
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Mobile Revenues Breakdown
total
3Q’12 3Q’13 YoY
Organic data,
€mln, %YoY
wholesale(1)
Consumer+Business
services
outgoing voice
VAS
business received
handsets
9M YoY
1,584 1,368 -13.6% -16.0%
82 80 -2.8% -
1,502 1,288 -14.2% -16.7%
1,420 1,200 -15.5% -17.9%
1,335 1,158 -13.2 % -12.7%
832 658 -20.9% -17.5%
503 500 -0.5% -4.8%
85 42 -51.1% -64.4%
82 88 +7.8% +1.4%
business generated(2)
(1) Including Visitors
(2) Total Retail Service Revenues net of Incoming
45
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
Domestic Fixed Revenues Breakdown
total
3Q’12 3Q’13 YoY
Organic data,
€mln, %YoY
Sparkle group
Core service
voice & access
internet
business data
national wholesale
other & subs
products
eliminations
9M YoY
3,132 2,898 -7.5% -7.8%
337 339 +0.6% -10.4%
2,789 2,557 -8.3% -7.5%
1,306 1,178 -9.8% -8.9%
396 401 +1.2% +1.4%
281 279 -0.7% -3.1%
744 650 -12.6% -10.8%
62 49 n.m. n.m.
62 49 -20.1% -15.8%
(56) (47) n.m. n.m.
46
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
-490
-207
-
-100
-27
-136
-20
-283
D Efficiency
D Abs
'13 vs ‘12
Total Cash Cost
9M‘13
-446
2.022 Total Capex +40
1.794
809
-114
1.995
+17
-108
+33
6.087 Total Opex* -618
1.087
-446
-
-446
-
-
-
-
-446
D ITX
+358
+247
-
- 14
+44
+ 28
+53
+111
D Vol.
Driven
Industrial
Personnel
Mktg & Sales
ITX
G&A & Other **
-578
402
Efficiency Volume Driven
- 446 8.687
-578
-490
Intercon- nection
9M'12 9M'13
8.109
Handsets:
- 29
+358
9M'12 9M'13
8.109
76% of FY13 Target
90% of FY13 Target
82 % of FY13 Target
64.8% 67.2%
+ 2.4 p.p.
**Includes Other Operating cost/Income and Capitalized Costs * Costs related to credit management are reclassified from G&A & Other to Mktg & Sales
Progress on Domestic Efficiency Ytd ‘13 - Breakdown Euro mln, Organic Data, %
Cash Cost
Cash Cost on Revenues
Target FY : - 601
Delta Cash Cost
9M’13 vs FY ‘12
47
TELECOM ITALIA GROUP
Morgan Stanley - Thirteenth Annual Technology, Media & Telecoms Conference Barcelona, 20 November 2013
MARCO PATUANO
+29,0%
+5,0%
9M
'13
9M
'13
-21,0%
-12,0%
Customer Care: operating KPI’s 2013
ma
rke
t d
yna
mic
s
cari
ng
pro
du
ctio
n
ca
pa
city
cre
dit
pro
du
ctio
n
capa
city
Front End
(call)
Back Office
(items)
Front End
(call)
Back Office
(items)
He
ad
cou
nt -4%
9M'12 9M'13
46
45
flat
11 11 10.872 10.326
9M'12 9M'13
-546
«make» growth «buy» reduction «in-house» incidence
46% 51%
9M'12 9M'13
41% 53%
9M'12 9M'13
Contribution CS
on selling activities
58% 10%
50% 23%
73% 88%
Access MNP BB ULL SI Contents
64%
8% 48% 16%
Access MNP BB ULL
Consu
mer
Ente
rpri
se
Annual managed issue
Consumer: 7 mln
Enterpise: 2.8 mln
Solecit
80%
cre
dit
qu
ality
(C
SI
cust
om
er
care
)
7,18 7,32
7,68
6,57 6,67
7,10
1Q'12 4Q'12 3Q'13
Consumer Enterprise
7,84 7,89 7,99
6,7 6,9 7,19
1Q'12 4Q'12 3Q'13
Consumer Enterprise
fixed
mobile
FTE