TELECOM ITALIA GROUP. 9M 2014 Results. Rome, November 7th, Telecom Italia Group. 9M 2014 Results. Marco Patuano Piergiorgio Peluso

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1 TELECOM ITALIA GROUP Rome, November 7th, 2014 Telecom Italia Group Marco Patuano Piergiorgio Peluso

2 Safe Harbour This presentation contains statements that constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of These statements appear in a number of places in this presentation and include statements regarding the intent, belief or current expectations of developments and changes in 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 Telecom Italia 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 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 and investors are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of this presentation. Telecom Italia 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 business or acquisition strategy or planned capital expenditures or to reflect the occurrence of unanticipated events. Analysts and investors should 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 which may identify factors that affect the forward looking statements included herein. 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 2014 have been applied on a basis consistent with those adopted in the Annual Consolidated Financial Statements at 31 December 2013, to which reference should be made, except for the new standards and interpretations adopted by the Telecom Italia Group starting from 1 January 2014 which hadno effects on the Condensed Consolidated Financial Statements as of and for the nine months ended 30 September The Telecom Italia Group Condensed Consolidated Financial Statements at 30 September 2014 have not undergone an external audit/review. Following the classification, starting from the fourth quarter 2013, of the Sofora - Telecom Argentina group as a disposal group (Discontinued operations/non-current assets held for sale) the consolidated financial statements data of prior periods (including the nine months ended 30 September 2013) have been restated accordingly and therefore the Sofora - Telecom Argentina group is no longer separately presented as a business unit. Furthermore: starting from 2014, Organic changes in Revenues, EBITDA and EBIT are determined excluding, where applicable, only the effects of the changes in the scope of consolidation and exchange differences and therefore don t take into account, as in the past, non-organic income and expenses, including those non-recurring; starting from 2014, the Domestic business unit includes the Olivetti group, in addition to Core Domestic and International Wholesale. This different presentation reflects the commercial and business placement of the Olivetti group and the process of integrating its products and services with those offered by Telecom Italia in the domestic market. Therefore, the Olivetti group is no longer separately presented as a business unit; as a result, the data for prior periods under comparison have been restated, accordingly. In this presentation reference is also made to a normalization called Domestic Underlying Ebitda trend, which is based on the Adjusted (for one-offs and discontinuities) Reported Domestic Ebitda. This representation is provided as additional information to our Reported Ebitda that represents Operating profit before depreciation and amortization, capital gains (losses) and impairment reversals (losses) on non-current assets. Marco Patuano - Piergiorgio Peluso 2

3 Agenda TI 3Q 14 Results Financial Update Take-Aways Appendix Marco Patuano 3

4 3Q 14 Group Highlights Service Revenues 4,943 mln (2Q 14: 4,871 mln ) Ebitda 2,243 mln (2Q 14: 2,145 mln ) Innovative Capex ~620 mln YTD (Italy & Brazil) Net debt reduction to bln Argentina Improving organic performance at -5.7% YoY vs -7.1% in 2Q 14 due to a different mix: Better domestic trend both in Fixed and Mobile underpinned by healthier competitive environment and good acquisition results in UBB KPIs TIM Brasil: Positive Business Generated results supported by an excellent MBB take-up Group Ebitda at 2.2 bln in 3Q 14 (Reported -8.0% YoY, Organic -8.5% YoY) Performance at domestic level (Reported Ebitda -11.6% YoY) impacted by non-recurring items; Underlying Domestic Ebitda (net of new handset subsidy approach and one-offs) -7% YoY in 3Q 14 Sound performance in Brazil (+6.5% YoY in 3Q 14) driven by a strong results in data revenues, efficiency on network and reduction in interconnection costs Focus on innovation confirmed: Italy: current 27% NGN coverage is above the mid-point of of the Original Plan target; actual 74% LTE coverage shows strong upbeat vs FY 14 target at 60% and FY 15 target at 70% Brazil: 700Mhz spectrum acquired at fair price, ensuring a better coverage (Indoor and Rural) with a much larger penetration than the 2,500 MHz band currently used for 4G services. 81 cities have been covered so far by our MBB Project (36% Urban coverage); 100 cities will be covered by end of 2014 Lower by 0.2 bln vs FY 13 and by 0.8 bln vs 2Q 14. Usual 2H NFP improvement kicks in On October 24, Sale Agreement with Fintech was Amended and Restated: Total Sale Proceeds confirmed at US$ 960mln, which now translate into a 6x Ebitda multiple after recent Peso devaluation 2 nd Tranche for US$ 215.7mln cashed in Cash collateral and Break-up Fee to support completion of transaction Marco Patuano 4

5 Domestic top line recovery gains momentum mln Domestic Service Revenues trend QoQ ,895 3,914 3,834 3,785 3,554 3,567 3, % -9.1% -9.1% -8.8% -8.9% YoY -10.1% -10.5% Domestic Service Revenues improvement: constant topline recovery on YoY basis: -6.2% in 3Q 14 vs -8.9% in 2Q 14 and -8.8% in 1Q 14 growing performance quarter on quarter: +0.7% in 3Q 14 and +0.4% in 2Q 14 vs -1.0% on average in 2013 Service revenues stabilization at 3.6 bln per quarter in Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Fixed Service Revenues Mobile Service Revenues YoY 2, % 2,664 2, % -7.2% Improving performance in fixed business thanks to better results in all components YoY 1, % 1, % 1, % Sound recovery in mobile service revenues driven by better results both in Business Generated & Received 1Q'14 2Q'14 3Q'14 1Q'14 2Q'14 3Q'14 Marco Patuano 5

6 Domestic Ebitda: progressing towards an improving FY trend %YoY, mln 2, Domestic Ebitda -11.6% net of new handset subsidy approach 1,795 net of new handset subsidy approach reported 1H'14-5.4% -7.9% Ebitda trend 3Q'14-9.8% -9.8% -11.6% 3Q'13 3Q'14 Ebitda Discontinuities Effects on Year-on Year performance for this quarter are: ~ 30 mln euro for incentive plans for employees & management and salary discontinuous increases enabling insourcing ~ 30 mln euro for regulatory termination disputes and other provisions 40 mln euro for new handset subsidy approach -9% Underlying Ebitda trend 1H'14 3Q'14 4Q'14-7% + Normalized for discontinuous increases in labour costs, provisions & handset subsidy Marco Patuano 6

7 Translating Domestic Innovative Capex into Revenues others commercial& others IT IT network 2, , innovative -69 traditional a b c d Efficiency (1) : -197 mln Innovative portion on network capex 33% 35% 37% M 14 35% +8pp YoY 1, ,122 handset subsidy 1Q'14 2Q'14 3Q' M'13 network network IT commercial&others IT others subsidy 9M'14 IT Growing penetration of Innovative Revenues on total (2) Innovative Mobile Service Revenues (3) Innovative Fixed Service Revenues (4) 35% 33% 32% 32% % 31% 24% 25% 28% % 28% 30% 1Q 2Q 3Q 1Q 2Q 3Q (1) total domestic capex efficiency= a + b + c + d (2) net of wholesale (3) Broadband & VAS Content (4) Broadband, VAS Content & ICT Marco Patuano 7

8 NGN & LTE current Coverage NGN Coverage LTE Coverage >50% >80% Target further upgradable 27% +10pp vs FY 13 51% 74% FY 14 target already exceeded First mover advantage to be preserved Market Fiber Lines 226 «Open Fiber» launched >1.0 ~1.0 4Q'13 1Q'14 2Q'14 3Q'14 October ~1.5k/day 6,853 7,166 Mobile BB CB 8,023 0% 1% 2% 8,444 8,677 4% 5% 9,151 7% 9,596 9% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 Additional Giga take-up >50k clients per week TI Retail NGN OLO Subloop/NGN Avg daily acquisition MBB % LTE Marco Patuano 8

9 Domestic Mobile Quarterly Mobile Revenues Breakdown Service Revenues Trend YoY mln, QoQ Total handsets Service wholesale Innovative VAS content Broadband Traditional 1, , , , , , wholesale +8.7% +5.6% Innovative +9.9% +8.4% Traditional -0.5% +16.6% SMS Incoming voice Outgoing voice % -21.9% -16.7% 1Q'14 2Q'14 3Q'14 Mobile Service Revenues improvements due to: Constant recovery in outgoing voice and positive support from incoming thanks to zero MTR drag Sound performance in Innovative revenues driven by progressive growth in browsing and additional revenue stream from new digital entertainment services We confirm Mobile Service Revenues is trending towards parity in 4Q 14 1Q'14 2Q'14 3Q'14 4Q'14-7.1% -13.3% -14.9% + Marco Patuano 9

10 Domestic Fixed mln, QoQ Total handsets Service National, Int wholesale + Subs&others Quarterly Fixed Revenues Breakdown 2, , , , , , Service Revenues Trend YoY Wholesale & others -7.2% -7.9% Innovative -9.3% Innovative ICT VAS Broadband Traditional Others Access ,271 1, , % -10.4% +1.8% Traditional -13.1% +3.0% -10.1% Outgoing voice Q'14 2Q'14 3Q'14 1Q'14 2Q'14 3Q'14 4Q'14 Fixed Service Retail YoY 1Q'14 2Q'14 3Q'14-6.2% -7.4% -8.9% Monthly Retail Fee upward revision effective November 1st to provide further uplift in 4Q 14 Significant support from increasing fiber take-up -7.4% -8.6% -7.2% + Marco Patuano 10

11 Brazil: Usage of Mobile Data is Rapidly Expanding Business Generated trend in Q3 is supported by increased Data Penetration Ebitda Performance remains sound YoY, % -4% +1% ex MTR YoY, % Innovative VAS revenue growth accelerating +36% +44% +50% YoY, % +7.8% +8.0% +6.5% Business Generated Business Received Local+Long distance Voice + VAS Incoming (Voice&SMS) 3Q'13 +5% -34% 3Q'14 Mobile:«business generated» revenues growing at a good pace (+5% YoY) thanks to data Mln users 1Q'14 2Q'14 3Q'14 Double-digit growth in data users % 32 3Q'13 3Q'14 Strong performance in 4G Market Share 30% +4pp 26% July'13 July'14 Source: ANATEL YoY, % 1Q'14 2Q'14 3Q'14 Mobile Service Revenues Performance* ex MTR +3% +1% +1% 1% 4% 1Q'14 2Q'14 3Q'14 700Mhz spectrum Acquisition MBB project: «on track» Investing in Network infrastructure to strengthen our position in Mobile Data Total investment of R$ 2.85bln «Block 2» cost R$ 1.95bln clean-up costs R$ 0.9bln Urban coverage Q'14 2Q'14 3Q'14 30% 31% 32% 36% * Mobile Service Revenues based on net contributions Marco Patuano 11

12 Agenda TI 3Q 14 Results Financial Update Take-Aways Appendix Piergiorgio Peluso 12

13 Telecom Italia 3Q 14 Group Results mln, %YoY 3Q 14 Reported Organic (1) mln Weight (2) YoY YoY net of new handset subsidy approach Normalized for cost of labour, provisions & handset subsidy Revenues Domestic Brazil 5,421 3,805 1,608 70% 29% -4.5% -5.0% -3.1% -4.9% -5.0% -4.5% n.a. Ebitda Domestic Brazil 2,243 1, % 20% -8.0% -11.6% +8.4% -8.5% -11.6% +6.5% -7.0% -9.8% -7% Capex Domestic Brazil % 34% -13.2% -9.3% -19.7% -12.5% -9.3% -18.4% -9.1% -3.6% Ebitda-Capex Domestic Brazil 1,310 1, % 9% -4.0% -12.8% % -12.8% - n.a. (1) Starting from 2014, Organic performance includes only exchange rate variations and impacts from perimeter changes (2) Including TI Media, Other & Elimination. Olivetti is included in the Domestic perimeter Piergiorgio Peluso 13

14 9M 14 Domestic Opex Efficiency Plan to Overperform FY Target mln Volume/ Revenue- Driven (1) Market/ Customer- Driven (2) Process/ Asset- Driven (3) Labour Cost mln YoY impact Solidarity Agreement Salary Increase (4) Extraordinary Compensation Plans 6, , , , ,080 2, ,034 9M'13 Labour Cost YoY 6,040 9M' Q'14vs'13 2Q'14vs'13 3Q'14vs13 positive negative Operating Expenditures neutral negative neutral negative negative comm./adv./ccare -72 External Opex net of COGs -348 mln YoY bad debt/other commercial -31 Market-driven -102 mln euro Solid Cost Reduction: industrial costs/g&a other opex total efficiency Process-driven -246 mln euro Commissioning: volume acquisition reduction Advertising: cost optimization supported by single format and brand Operating Costs for Network & IT: savings in procurement and positive impacts of process reengineering G&A: zero-budget approach and policy review -348 Including: 71 mln euro Sparkle provision reversal 84 mln euro Antitrust fine in 2013 (1) Interconnection, Cost of Equipment, Other COGs (2) Acquisition costs, ADV, Customer Care, Other commercial costs (3) Industrial costs, G&A, Real Estate, Other (4) Starting from February 1, 2014 Piergiorgio Peluso 14

15 9M 14 Operating FCF Generation Remains Solid Reported, mln 9M 14 figures 2, Free Cash Flow Generation TI recurring stronger Second Half Operating Free Cash Flow is confirmed Group 6,588 1,676 2,272 1,228 Ebitda Capex operating vs WC&others OpFCF ,058 1Q'14 2Q'14 3Q'14 4Q'14 OpFCF on Revenues Domestic 1,792 5,296 1,338 Ebitda Capex D operating WC&others 2,166 OpFCF 19% on Revenues 25% 20% 13% 1Q'14 2Q'14 3Q'14 OpFCF quarterly breakdown Brazil 1, Ebitda Capex D operating WC&others OpFCF 1Q'14 2Q'14 3Q'14 Piergiorgio Peluso 15

16 9M 14 Net Financial Position Improvement mln FX impact 26,807 26,572-2,272 +1, Mandatory Convertible Bond -1,657 mln vs 9M 13 Mandatory Convertible Bond ,507 Including 1.3 bln euro Mandatory Convertible Bond 25,272 FY'13 OpFCF Cash Financial Expenses/Financial Accruals vs Taxes & other impacts M&A Telecom Argentina (discontinued) Dividends/ Change in equity 9M' FX negative impact Piergiorgio Peluso 16

17 Towers, Frequencies and Disposals Update Italy Brazil Argentina Towers Value Extraction from Separation remains a Priority Tower Division created Service Management Agreement finalized Advisors appointed for further steps TI Media Digital terrestrial network businesses merger completion with Gruppo Editoriale L Espresso Sale process on track, while new regulatory framework still developing 700Mhz Auction A Positive Outcome for TIM Overall Cost in Line with expectations Awarded Lot n.2 Fits our Existing Spectrum Profile at best Increased 4G Frequencies to maintain momentum in TIM s mobile data strategy Towers TIM Tower sale finalization soon Process in its Final Stage; final agreement expected to be signed by year end Transaction scope involving about 6.4k TIM Towers Proceeds expected to finance TIM network deployment, including 700 MHZ license costs New Agreement Supports Disposal Sale Agreement renegotiated to allow for transaction completion Same amount granted TI Management Discontinued operation New US$175mln break-up fee in place a b c d Structure of the deal Total Consideration US$ 960 mln US$113.7mln already cashed in in Dec 13 US$215.7mln cashed in on Oct 29 th, 2014 US$600.6mln TI note issued entirely purchased by the Buyer, providing Cash collateral US$30mln service fee 3G/4G Spectrum Auction Lot 8 awarded to TEO consisting in 30MHz for 15-year licenses on AWS (band Mhz) and 20Mhz on 700MHz Piergiorgio Peluso 17

18 Agenda TI 3Q 14 Results Financial Update Take-Aways Appendix Marco Patuano 18

19 3Q 14 Group Take-Aways Domestic Efficiency Plan Innovative Capex Brazil M&A FCF generation Upbeat 3Q 14 paves the way for further improvements in 4Q and beyond: Transition from price-based to quality-driven competition opens to further value generation from Data, while polarization between High-Quality Network Operators and Other Operators increases Recovery in Mobile is well ahead and has started in Fixed, whose upside is shown by both our Retail and Wholesale take-up of Fiber offers Further push on convergence, offer simplification and superior quality experience for both our Consumer and Business segments ongoing Domestic Opex Efficiency Plan to overperform the 200mln FY 14 target, while favorably facing 2015 step-up to 400mln. In Brazil, TIM presented a strong Opex saving in 3Q with -8.1% YoY, mainly due to efficiency on network and lower interconnection costs We are investing to strengthen our role of Digital Champion in Italy, where innovative services and content create more and more demand for bandwidth and speed not a game for all. Network and IT transformation and delayering are a key part of the process Also in Brazil innovative investments are being increased in order to accelerate the implementation of new technologies for mobile data and further stimulate the commercial take-up of 4G. TIM currently covers around 36% of the urban population with 4G, serving 45 municipalities TIM Brasil is set to generate relevant value from its important, country-wide MBB expansion Opportunities will be considered only if compliant with our Group s Financial Discipline and if clearly generating value for our Companies and our shareholders / bondholders Supported by all the above actions, FCF generation is key to preserve our leadership in our Key Markets and to ensure our deleveraging goals Marco Patuano 19

20 Agenda TI 3Q 14 Results Financial Update Take-Aways Appendix Marco Patuano - Piergiorgio Peluso 20

21 Domestic Performance Dashboard Reported data, mln, %YoY Total Revenues Ebitda 4, % 3,805 2, % net of new handset subsidy approach 1, % normalized for cost of labour, provisions & handset subsidy -7% 2Q'13 3Q 13 2Q'14 3Q 14 2Q'13 3Q 13 3Q 14 2Q'14 on revenues 50.7% 47.2% Capex Ebitda - Capex % net of new handset subsidy approach 615 1, , % 2Q'13 3Q 13 3Q 14 2Q'14 2Q'13 3Q 13 2Q'14 3Q 14 Marco Patuano - Piergiorgio Peluso 21

22 Brazil Performance Dashboard 3Q 14 Organic data*, mln, %YoY Total Revenues Ebitda Handsets Service 1, % -4% 1,394 1,341 Mobile Service Revenues** +1% ex-mtr 1, % Q'13 3Q'14 on revenues 3Q'13 3Q' % 27.4% Capex Ebitda - Capex % 9M % YoY Q'13 3Q'14 3Q'13 3Q'14 * Excluding exchange rate ** Mobile Service Revenues based on net contributions Marco Patuano - Piergiorgio Peluso 22

23 Domestic Mobile KPIs 000 Mobile CB Active CB 31,858 31,706 31,554 31,221 30,996 30,660 30,374 83% +2pp YoY 85% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q' MNP Balance Jan Feb Mar Apr May June July Aug Sep Cum YoY Highlights Clear signs of market stabilization translated into: better MNP balance +504k YTD lower gross adds -36% YoY in Q3 better churn rate 25.2%; -3.6pp YoY Marco Patuano - Piergiorgio Peluso 23

24 Domestic Fixed KPIs 000 Fixed Access Line Losses Total 21,016 20,788 20,536 20,378 20,238 20,085 19,823 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 OLO 7,238 7,233 7,164 7,169 7,211 7,258 7,167 (201) (222) (183) (163) (182) (200) (171) TI retail 13,777 13,555 13,372 13,210 13,027 12,828 12,656 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 YoY BB Access BB ARPU Total Total BB Fast Fiber SI+20Mb Total ADSL 6,984 6,933 6,892 6,915 6,933 6,939 6, ,015 1,050 1,100 1,167 1,259 1, ,014 1,045 1,084 1,122 1,155 1,164 6,019 5,918 5,842 5,814 5,766 5,679 5,617 /month Flat ADSL +3.5% +3.5% +3.6% +1.6% +1.8% +2.3% +3.9% Free ADSL Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 ARPU BB YoY Marco Patuano - Piergiorgio Peluso 24

25 Domestic Mobile Revenues Breakdown Reported, mln, %YoY 3Q 13 3Q 14 YoY 9M YoY Total 1,360 1, % -10.0% wholesale (1) % +1.9% Consumer+Business 1,280 1, % -10.7% services 1,200 1, % -12.6% business generated (2) 1,158 1, % -12.7% outgoing voice % -22.2% voice % -18.7% fees&other % -64.7% VAS % +0.7% business received % -8.9% handsets % +16.9% (1) Including Visitors (2) Total Retail Service Revenues net of Incoming Marco Patuano - Piergiorgio Peluso 25

26 Domestic Fixed Revenues Breakdown Reported, mln, %YoY 3Q 13 3Q 14 YoY 9M YoY Total Wireline 2,898 2, % -7.1% Service Wireline 2,844 2, % -7.7% Sparkle group Wholesale Domestic Retail Service % -3.2% % -10.3% 1,899 1, % -7.5% voice & access 1,178 1, % -11.2% internet % +1.5% business data % -2.9% other n.m. n.m. elim. & other (43) (41) n.m. n.m. products % +22.1% Marco Patuano - Piergiorgio Peluso 26

27 Robust Liquidity Margin and Well-Distributed Debt Maturities Liquidity Margin Debt Maturities mln mln 12,424 30,657 11,160 12,305 5,305 7,000 Liquidity margin 4,492 1,264 23,387 3,138 3,325 Fully Covered 1,354 until ,861 2,295 1,030 2,965 2, ,308 1, ,270 1, , Within 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Beyond 2019 Total M/L Term Debt Undrawn Portion of Facility/Committed C&CE (escluded discontinued) Bonds Loans (of which long-term rent, financial and operating lease payable 1,200) Drawn bank facility 30,657 mln is the nominal amount of outstanding medium-long term debt. Adding the Mandatory Convertible Bond ( 1,300 mln), the discontinued operations ( 28 mln), IAS adjustments ( 1,223 mln) and current financial liabilities ( 487 mln), the gross debt figure of 33,695 mln is reached. N.B. Debt maturities are net of 1,262 mln (face value) of repurchased (of which 504 in the 2013 and 543 in the 2014) own bonds (of which 1,047 mln related to bonds due within 2016). Marco Patuano - Piergiorgio Peluso 27

28 Well-Diversified and Hedged Debt Total Gross Debt net of Adjustment: Euro mln Maturities and Risk Management mln 1,176 6,026 1, Average debt maturity: 7.35 years (bond only 8.05 years) 28 Fixed-rate portion on gross debt approximately 66.9% Gross debt 33,695 (of which 30 mln disc. Operations) Financial assets (6,699) of which Cash & CE and marketable securities (5,304) Cash & Cash Equivalent (4,105) Marketable securities (1,199) Italian Government Securities (864) Other (335) Discontinued operations (424). 25,195 Around 40% of outstanding bonds (nominal amount) is denominated in USD, GBP and YEN and is fully hedged Cost of debt: 5.4% Net Financial Position 26,572 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 2,455 /mln (of which 687 /mln on bonds) - the impact on Financial Assets is equal to 966 /mln. Therefore, the Net Financial Indebtedness is adjusted by 1,489 /mln. Marco Patuano - Piergiorgio Peluso 28