GROUP’S PROFILE

[G4-3]The Telecom Italia Group offers fixed and mobile communication services and ICT solutions1. In Italy, the Group operates the biggest fixed voice and data infrastructure, covering the whole territory and provides one of the country’s most extensive and advanced mobile network platforms. [G4-6]In addition to its domestic leadership, the Group has a significant international presence in South America, particularly in Brazil. [G4-17a] For the details of the countries where Telecom Italia operates see Note 45 of the Group’s consolidated financial statements, which also lists the Group companies, subdividing them by consolidation method. [G4-13][G4-22]No significant changes in operations and in the consolidation scope took place during 2015. For details of the changes that did take place, see Notes 1 and 3 of the Group Consolidated Financial Statements. The main changes over the past three years include the Sofora – Telecom Argentina Group being recorded among discontinued operations, the sale of the La7 S.r.l. business and the shareholding in the MTV Group and the creation of INWIT S.p.A., listed on the Milan stock exchange, which operates in the electronic communication infrastructure sector, specifically in those dedicated to hosting radio transmission equipment for mobile voice networks both of Telecom Italia and the other operators.

Telecom Italia provides the Country with innovative infrastructure, IT skills, products, services and ICT solutions that meet the needs of society. This commitment has been consolidated through its active contribution to achieving the Country’s digitisation objectives as defined in the Italian Digital Agenda, developed by the Italian government by transposing the directives set out by the EU for the creation of the European Digital Agenda.

Within Telecom Italia the Corporate Shared Value (CSV) department has been set up which - starting with an analysis of the Country’s main needs, has identified three areas of intervention that can respond to these needs, through technologies, skills and specific projects. The three areas identified are:

  • digitisation, connectivity and social innovation
  • environmental protection
  • digital culture

The first 17 projects,2 the value of which has been estimated applying the metrics of the CSV model in Italy and in Brazil, have been inserted within these three areas; a summary is provided in the Corporate Shared Value section.

 

[G4-8][G4-9] All the Group’s activities are encompassed in the following Business Units:

  • “Domestic” operates primarily in the field of domestic fixed and mobile voice and data services for end customers (retail) and other operators (national wholesale), as well as in the domestic information technology products and services sector. The Business Unit also includes the activities of INWIT S.p.A. and on an international note, the activities related to the development of fibre optic networks (international wholesale) in Europe, the Mediterranean and South America;
  • “Brasile” ” (TIM Brasil Group) provides mobile telecommunications services. Furthermore, as a result of the acquisition of a number of fixed line operators, it also offers fibre optic data transmission and residential broadband services;
  • Media” operates in the management of digital multiplexes through Persidera S.p.A.;
  • “Other Activities” includes the financial companies and other minor companies not strictly connected with the Group’s “core business”.

Group’s main brands

[G4-4][G4-8] The main brands market voice/data and information technology products and services for residential and business customers, public administration, national and international operators. The Group also provides transmission capacity and technological solutions for TV sector operators.

TIM is the single brand for the whole Group, which operates in the domestic market offering fixed and mobile telephony, internet, digital content and cloud services. TIM is supporting Italy in its quest for full digitisation by building an ultrabroadband network infrastructure and providing next generation services. In Brazil, TIM markets mobile phone, mobile internet and fixed line services.

Through the Sparkle brand, the Group offers international voice, data and internet solutions to fixed and mobile telecommunications operators, Internet Service Providers/Application Service Providers, content and media players and multinational companies.

The Olivetti brand markets information technology products and services for residential and business customers. Persidera offers terrestrial digital transmission capacity and high quality technological solutions to leading TV networks operating in the domestic market. Finally, INWIT is the Group’s tower company.

Main shareholders of Telecom Italia S.p.A.

[G4-7] Telecom Italia is a joint-stock company organised under the laws of the Republic of Italy3 , [G4-5] where the parent company has its registered office. [G4-7] The reference shareholder, as of December 31 2015, is Vivendi S.A.4 with 21.39% of the ordinary share capital.  [G4-13] The share ownership underwent significant changes over the course of 2015, with the entry of the French shareholder5 and the exit of Telco S.p.A. and the Findim Group S.A. The Net Equity structure and the number of shares in circulation are shown in Note 14 of the Group Consolidated Financial Statements. For further information relating to reports made to Consob regarding significant shareholdings, see the Report on Operations of the Telecom Italia Group.

The shareholding structure as of December 31, 2015 is shown below6.

The shareholding structure as of December 31, 2015

[G4-13] An examination of the share capital structure in the three-year period 2013–2015 shows, as well as the aforementioned entry of Vivendi S.A., an increase in 2015 of the shares held by foreign and Italian institutional investors, respectively +5.1pp and 0.9pp. The shares held by foreign legal entities, during this three-year period, fell slightly (from 4.4% in 2013 to 4.1% in 2015) as did the shares held by Italian legal persons, falling from 0.8% in 2013 to 0.6% in 2015.

Lastly, as regards the other Italian shareholders and other foreign shareholders categories, there was a decrease in ownership over the three-year period (-4.5pp), slight for other foreign investors.

1[G4-3] For general information about the Group, see the consolidated financial statements of the Telecom Italia Group, Note 1.

2 2 projects have been inserted in the section The people in Telecom Italia.

3[G4-7] Also see the Telecom Italia Group Consolidated Financial Statements, Note 1.

4 Direct and indirect participation.

5[G4-7] For details, also see the Report on Operations of the Telecom Italia Group, Information for Investors, and the stakeholder engagement paragraph of the Corporate

Shared Value chapter [G4-13].

6 Source: Register of shareholders as of December 31, 2015, supplemented by communications received and by other available information.