2025 Annual Report
Telecom Italia Finance Société Anonyme
12, rue Eugène Ruppert L-2453 Luxembourg
R.C.S. Luxembourg B 76.448
Audited Annual Accounts as at December 31, 2025, which have been authorized by the Board of Directors, held on March 09, 2026 and
independent auditor's report

Telecom Italia Finance Société Anonyme | 1

2025 Annual Report
Table of contents

Table of Contents
Management's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2
Annual Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6
Balance Sheet – Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6
Balance Sheet – Capital, Reserves and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7
Profit & Loss account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8
Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9
Notes to the Annual Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10
Note 1 – General information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10
Note 2 – Summary of significant accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10
Note 3 – Formation expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12
Note 4 – Other fixtures and fittings, tools and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12
Note 5 – Shares in affiliated undertakings and Participating interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 13
Note 6 – Loans to affiliated undertakings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14
Note 7 – Amounts owed by affiliated undertakings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 14
Note 8 – Other debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15
Note 9 – Other investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15
Note 10 – Cash at bank and in hand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 15
Note 11 – Subscribed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16
Note 12 – Share premium account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16
Note 13 – Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16
Note 14 – Provisions for taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 16
Note 15 – Other provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17
Note 16 – Non convertible loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17
Note 17 – Amounts owed to credit institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17
Note 18 – Amounts owed to affiliated undertakings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18
Note 19 – Other creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18
Note 20 – Income from participating interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 18
Note 21 – Income from other investments and loans forming part of the fixed assets . . . . . . . . . . . . . . | 19
Note 22 – Other interest receivable and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 19
Note 23 – Value adjustments in respect of financial assets and of investments held as current assets | 19
Note 24 – Interest payable and similar expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20
Note 25 – Tax on profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20
Note 26 – Other taxes not shown under items 1 to 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20
Note 27 – Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20
Note 28 – Off balance sheet commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21
Note 29 – Tax situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 21
Note 30 – Consolidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22
Note 31 – Directors remuneration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22
Note 32 – Staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22
Note 33 – Litigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 22
Note 34 – Auditor’s fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 23
Declaration of the manager responsible for financial reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 24
Independent auditor's report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 25

2 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Management’s report

Management’s report

Dear Shareholder,
The year 2025 of Telecom Italia Finance (the “Company” or “TI Finance”) ends with a profit of EUR
675.508.991,96 vs a positive result of EUR 179.358.377,38 in the year 2024.
The net income gap is primarily due to a larger amount of dividends received compared to previous year and
partially offset by a decrease in the net interest on short-term liquidity management, mainly due to a decline
in interest rates. Moreover, the Company suffers from the hedging of foreign exchange impact.
In 2025 the Company’s activities continue to be segmented into two business: holding of participations and
financial assistance to Telecom Italia Group (“TIM Group”) companies.
a) Participations
D uring the year 2025 TI Finance registered net dividends from TIM Brasil for EUR 581,2 million (EUR 36,8 million
in the year 2024).
As of December 31, 2025, the overall net book value of the Company’s equity investments is worth EUR 3.183
million, same value as of December 31, 2024.
The table here below shows the main shareholdings as at December 31, 2025:
b) Financial activity
The net decrease in Cash and Cash Equivalent as of December 31, 2025 (considering the previous 12 months)
has been equal to EUR 600 million, vs a net increase for the same period as of December 31, 2024 equal to EUR
79 million. The difference is mainly attributable to the different volumes in loans granted to the Group, short
term debts, investments in securities and dividends.

Telecom Italia Finance Société Anonyme | 3

2025 Annual Report
Management’s report

The net financial position as of December 31, 2025 is positive for EUR 3.791 million (EUR 3.264 million as of
December 31, 2024).

Million EUR | December 31, 2025 | December 31, 2024
Formation Expenses | 1 | 1
Loans to affiliated undertakings | 755 | 769
Amounts owed by affiliated undertakings |  |
becoming due and payable within one year [*] | 2.591 | 1.059
becoming due and payable after more than one year | 66 | 52
Other debtors |  |
becoming due and payable within one year | 3 | 1
becoming due and payable after more than one year | — | 17
Other investments | 791 | 1.085
Cash at bank and in hand | 986 | 1.572
Prepayments [**] | — | 9
Non-convertible loans |  |
becoming due and payable within one year | -48 | -48
becoming due and payable after more than one year | -656 | -656
Amounts owed to credit institutions |  |
becoming due and payable within one year | -394 | -278
becoming due and payable after more than one year | -109 | -123
Amounts owed to affiliated undertakings |  |
becoming due and payable within one year | -127 | -124
becoming due and payable after more than one year | — | -17
Other creditors |  |
becoming due and payable within one year | -3 | -2
becoming due and payable after more than one year | -66 | -52
Deferred income [**] | — | -2
Net Financial Position | 3.791 | 3.264

[*] Note 8 – Amounts owed by affiliated undertakings – a) – excluding Dividends receivable.
[**] Amounts include only financial prepayments and financial deferred income.
As of December 31, 2025, the total outstanding nominal amount of notes issued by TI Finance amounts to EUR
656 million (EUR 656 million as of December 31, 2024). T he Parent Company TIM S.p.A. unconditionally and
irrevocably guarantees the notes.
Share Capital
As of December 31, 2025 and December 31, 2024, the authorized, issued and fully paid-up capital is worth EUR
1.818.691.978,50 represented by no. 185.960.325 ordinary shares with a nominal value EUR 9,78 per share.
Risks
The Directors consider the following as the principal risks that could materially affect the result and the
financial position of the Company:
• the value of holdings in associated undertakings, equity investments and securities issued from third
parties may be adversely affected by financial and economic development;
• open Market risks, composed by the following specific:
– foreign currency risk: according to TIM Group risk management policies, TI Finance may
hedge the foreign currency exposure on its assets, liabilities and cash flows in currencies
other than euro through currency swap contracts or natural hedge positions;
– interest rate risk: in order to modify its interest rate exposure, TI Finance enters into interest
rate swaps. However, no assurance can be given that fluctuations in interest rates will not
adversely affect its results of operations or cash flows;
– credit risk: representing the risk of non‐fulfillment of obligations assumed by a counterparty
in relation to lending and liquidity management activities. The Company assesses the

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2025 Annual Report
Management’s report

recoverability of its loans both when the credit is granted and annually. Results of
assessments are summarized in the notes;
– liquidity risk: related to the need to meet short‐term financial liabilities.
The above-described financial risks are managed through:
• the application of the following guidelines defined at TIM Group level:
– for credit risk: liquidity management is based on prudential criteria and articulated in
investment of temporary cash surplus (money market instruments) and investment of a
permanent level of liquidity (bond portfolio management). In both situations, in order to
manage the counterparty risk, the counterparties are selected according to their credit rating
and the exposure is regulated both by names diversification and by tenor;
– for liquidity risk: an adequate level of financial flexibility is obtained by maintaining a treasury
margin that allows the refinancing requirements to be covered for at least the next twelve
months;
– for other market risks: fully hedging the exchange risk and minimizing exposure to interest
rates through appropriate diversification of the portfolio, including the use of derivative
financial instruments.
• the identification of the most suitable financial instruments, including derivatives, to reach prefixed
objectives;
• the monitoring of the results achieved.
The Company's business is not directly affected by climate change.
According to applicable laws, the Company is exempted by preparing the Corporate Sustainability Reporting
Directive ("CSRD") report. Relevant information are included in the consolidated accounts of TIM S.p.A. which
are available at the registered office located in Milano, via Negri 1, Italy and on the website https://
www.telecomitalia.com .
Corporate governance statement
The Company, in order to ensure its strategic guidance, the effective monitoring of management by the Board,
and the Board’s accountability to the Company and the Shareholders, has implemented the following
corporate framework:
• The Board, whose members are characterized by a high professional profile, is entrusted with:
▪ reviewing and guiding corporate strategy;
▪ overseeing major capital expenditures, acquisitions and divestitures;
▪ ensuring the integrity of accounting and financial reporting systems, including the
independent audit.
• Four out of six of Board seats are assigned to non-executive members.
• Two out of six of Board seats are assigned to independent directors.
• The Board establishes an Audit Committee (“AC”) to support its function in respect to all audit
matters. The AC is composed of three members, out of which two are independent, including the
chairperson and has direct access and contact with the external auditors (“réviseur d’entreprises
agréé”).
• The Board delegates the day to day management of the Company to one of its members.
Telecom Italia Finance is committed to the following TIM Group organizational model:
• Definition of strategic guidelines: in charge of the TIM Group Finance “Risk Committee” of which the
CEO and the Treasurer of Telecom Italia Finance are members.
• Execution activity: in charge of Telecom Italia Finance Front and Back Office, which, among others,
implements such guidelines in coordination with the TIM Group Treasurer and Capital Markets.
• TIM Group Financial Planning & Risk Control: any deviation from the guidelines is reported by the TIM
Group Financial Risk Controller to the Finance “Risk Committee”.
Additional details on financial risk management policies of TIM Group are available in the TIM S.p.A.
consolidated accounts and related documents.
Alternative Performance Measures
In this Management’s report, in addition to the conventional financial performance measures established by
Luxembourg laws, certain alternative performance measures are presented for a better understanding of the
trend of operations and financial condition.

Telecom Italia Finance Société Anonyme | 5

2025 Annual Report
Management’s report

The alternative performance measures used are described below:
• Net Increase / Decrease in Cash and Cash Equivalents: indicates the capability of the Company to
provide financial assistance to the Group, and its ability to face the liquidity risk as described above.
Greater details on calculation are provided in the Cash Flow Statement, that the Board of Directors of
the Company has decided to include within present Financials Statement.
• Net Financial Position: indicates the Company’s ability to pay off its debts. It is calculated as shown
below.

+ | Formation expenses
+ | Loans and investments included in Financial Fixed assets
+/- | Financial amounts owed by/to affiliated undertakings
+ | Other financial positions included in other debtors
+ | Investments included in current assets and Cash at bank and in hand
+ | Financial Prepayments
- | Debenture loans
- | Amounts owed to credit institutions
- | Other financial positions included in other creditors
- | Financial deferred income
Net Financial Position

Events subsequent to December 31, 2025 - Evolution of the year 2026
On February 12, 2025, TIM S.p.A.'s Board of Directors approved the binding offer for the purchase of TIM S.p.A.'s
100% stake in Telecom Italia Sparkle, received the previous day from the Ministry of Economy and Finance and
Retelit. The sale is expected to be finalized in the first part of 2026. TI Finance doesn't expect to have any
material impact from the reduction of loans to TIM S.p.A. Group.
During the year 2026 it is foreseen to continue the activity of financial assistance to TIM Group companies and
continue to manage the market risks above mentioned. With euro‑area inflation near the ECB’s target, we do
not foresee meaningful further policy tightening. In the United States, markets will weigh a cooling labor
market against resilient growth and sticky inflation. Overall, both fundamentals and technicals should remain
supportive for credit spreads in 2026. In this context, fixed income portfolio valuations are expected to remain
broadly stable under current macroeconomic assumptions, and net interest income should be largely in line
with the previous year.
The Company does not perform research and development activities.
The Company did not acquire and does not hold its own shares.
Financials as of December 31, 2025 herein reported comprise the balance sheet, the profit and loss account,
the cash flow statement and the explanatory notes.
Allocation of the result
The Board reminds that out of the result of EUR 675.508.991,96, at least EUR 33.775.449,60 must be allocated
to the legal reserve, the difference of EUR 641.733.542,36 remains at disposal of the shareholder.
Therefore, the Board proposes the following allocation to the shareholders’ meeting:
• EUR 33.775.449,60 to the legal reserve;
• EUR 600.000.000,00 to be distributed to the sole shareholder;
• EUR 41.733.542,36 to be allocated to profit or loss brought forward.

| The Managing Director Fabio Adducchio

6 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Annual Accounts

Annual Accounts

Balance Sheet – Assets

TELECOM ITALIA FINANCE S.A. BALANCE SHEET AS AT DECEMBER 31, 2025
ASSETS - [EUR] |  | 31 DECEMBER 2025 | 31 DECEMBER 2024
A. Subscribed capital unpaid |  | — | —
I. Subscribed capital not called |  | — | —
II. Subscribed capital called but unpaid |  | — | —
B. Formation expenses | [n.3] | 913.425,12 | 1.042.649,98
C. Fixed assets |  | 3.937.817.657,49 | 3.951.837.527,41
I. Intangible assets |  |  |
1. Costs of development |  | — | —
2. Concessions, patents, licenses, trade marks and similar rights and assets , if they were |  |  |
a) acquired for valuable consideration and need not be shown under C.I.3. |  | — | —
b) created by the undertaking itself |  | — | —
3. Goodwill, to the extent that it was acquired for valuable consideration |  | — | —
4. Payments on account and intangible assets under development |  | — | —
II. Tangible assets |  |  |
1. Land and buildings |  | — | —
2. Plant and machinery |  | — | —
3. Other fixtures and fittings, tools and equipment | [n.4] | 11.920,68 | 20.064,72
4. Payments on account and tangible assets in the course of construction |  |  | —
III. Financial assets |  |  |
1. Shares in affiliated undertakings | [n.5] | 3.182.997.707,76 | 3.182.997.707,76
2. Loans to affiliated undertakings | [n.6] | 754.808.029,05 | 768.819.754,93
3. Participating interests | [n.5] | — | —
4. Loans to undertakings with which the undertaking is linked by virtue of participating interests |  | — | —
5. Investments held as fixed assets |  | — | —
6. Other loans |  | — | —
D. Current assets |  | 4.466.073.189,93 | 3.787.621.427,40
I. Stocks |  |  |
1. Raw materials and consumables |  | — | —
2. Work in progress |  | — | —
3. Finished goods and goods for resale |  | — | —
4. Payments on account |  | — | —
II. Debtors |  |  |
1. Trade debtors |  |  |
a) becoming due and payable within one year |  | — | —
b) becoming due and payable after more than one year |  | — | —
2. Amounts owed by affiliated undertakings | [n.7] |  |
a) becoming due and payable within one year |  | 2.619.726.449,91 | 1.060.482.067,88
b) becoming due and payable after more than one year |  | 65.557.488,19 | 51.545.762,30
3. Amounts owed by undertakings with which the undertaking is linked by virtue of participating interests |  |  |
a) becoming due and payable within one year |  |  | —
b) becoming due and payable after more than one year |  |  | —
4. Other debtors | [n.8] |  |
a) becoming due and payable within one year |  | 2.595.930,19 | 1.440.746,02
b) becoming due and payable after more than one year |  | 391.386,75 | 17.157.820,67
III. Investments |  |  |
1. Shares in affiliated undertakings |  | — | —
2. Own shares |  | — | —
3. Other investments | [n.9] | 791.353.519,44 | 1.084.718.530,81
IV. Cash at bank and in hand | [n.10] | 986.448.415,45 | 1.572.276.499,72
E. Prepayments |  | 277.417,04 | 9.299.507,32
TOTAL ASSETS |  | 8.405.081.689,58 | 7.749.801.112,11

The accompanying notes are an integral part of these annual accounts.

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2025 Annual Report
Annual Accounts

Balance Sheet – Capital, Reserves and Liabilities

TELECOM ITALIA FINANCE S.A. BALANCE SHEET AS AT DECEMBER 31, 2025
CAPITAL, RESERVES AND LIABILITIES - [EUR] |  | 31 DECEMBER 2025 | 31 DECEMBER 2024
A. Capital and reserves |  | 7.000.064.476,88 | 6.444.555.484,92
I. Subscribed capital | [n.11] | 1.818.691.978,50 | 1.818.691.978,50
II. Share premium account | [n.12] | 3.147.555.262,50 | 3.147.555.262,50
III. Revaluation reserve |  | — | —
IV. Reserves | [n.13] |  |
1. Legal reserve |  | 123.882.006,45 | 114.914.087,58
2. Reserve for own shares |  | — | —
3. Reserves provided for by the articles of association |  | — | —
4. Other reserves, including the fair value reserve |  |  |
a) other available reserves |  | 51.489.941,85 | 51.489.941,85
b) other non available reserves |  | — | —
V. Profit or loss brought forward |  | 1.182.936.295,62 | 1.132.545.837,11
VI. Profit or loss for the financial year |  | 675.508.991,96 | 179.358.377,38
VII. Interim dividends |  | — | —
VIII. Capital investment subsidies |  | — | —
B. Provisions |  | 1.049.958,49 | 1.131.439,37
1. Provisions for pensions and similar obligations |  | — | —
2. Provisions for taxation | [n.14] | 140,00 | 140,00
3. Other provisions | [n.15] | 1.049.818,49 | 1.131.299,37
C. Creditors |  | 1.403.942.654,26 | 1.301.682.469,54
1. Debenture loans |  |  |
a) Convertible loans |  |  |
i) becoming due and payable within one year |  | — | —
ii) becoming due and payable after more than one year |  | — | —
b) Non convertible loans | [n.16] |  |
i) becoming due and payable within one year |  | 47.658.895,14 | 47.667.646,31
ii) becoming due and payable after more than one year |  | 656.057.186,89 | 656.090.009,99
2. Amounts owed to credit institutions | [n.17] |  |
a) becoming due and payable within one year |  | 393.519.993,72 | 278.280.710,74
b) becoming due and payable after more than one year |  | 108.642.511,81 | 122.654.237,70
3. Payments received on account of orders in so far as they are not shown separately as deductions from stocks |  |  |
a) becoming due and payable within one year |  | — | —
b) becoming due and payable after more than one year |  | — | —
4. Trade creditors |  |  |
a) becoming due and payable within one year |  | 2.200.289,05 | 2.523.216,51
b) becoming due and payable after more than one year |  | — | —
5. Bills of exchange payable |  |  |
a) becoming due and payable within one year |  | — | —
b) becoming due and payable after more than one year |  | — | —
6. Amounts owed to affiliated undertakings | [n.18] |  |
a) becoming due and payable within one year |  | 127.141.767,18 | 123.812.012,58
b) becoming due and payable after more than one year |  | 249.398,47 | 16.973.306,53
7. Amounts owed to undertakings with which the undertaking is linked by virtue of participating interests |  |  |
a) becoming due and payable within one year |  | — | —
b) becoming due and payable after more than one year |  | — | —
8. Other creditors |  |  |
a) Tax authorities |  | 21.132,12 | 50.146,90
b) Social security authorities |  | 51.381,00 | 62.940,94
c) Other creditors | [n.19] |  |
i) becoming due and payable within one year |  | 2.842.610,69 | 2.022.479,04
ii) becoming due and payable after more than one year |  | 65.557.488,19 | 51.545.762,30
D. Deferred income |  | 24.599,95 | 2.431.718,28
TOTAL CAPITAL, RESERVES AND LIABILITIES |  | 8.405.081.689,58 | 7.749.801.112,11

The accompanying notes are an integral part of these annual accounts.

8 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Annual Accounts

Profit & Loss account

TELECOM ITALIA FINANCE S.A. PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2025
[EUR] |  | 31 DECEMBER 2025 | 31 DECEMBER 2024
1. Net turnover |  | 98.400,01 | 145.448,93
2. Variation in stocks of finished goods and in work in progress |  | — | —
3. Work performed by the undertaking for its own purposes and capitalised |  | — | —
4. Other operating income |  | 95.864,15 | 165.192,15
5. Raw materials and consumables and other external expenses |  | -912.026,68 | -1.077.240,57
a) Raw materials and consumables |  | — | —
b) Other external expenses |  | -912.026,68 | -1.077.240,57
6. Staff costs |  | -1.284.508,40 | -1.137.865,90
a) Wages and salaries |  | -1.093.149,65 | -1.037.404,27
b) Social security costs |  |  |
i) relating to pensions |  | -82.066,21 | -77.659,54
ii) other social security costs |  | -44.805,30 | 29.224,15
c) Other staff costs |  | -64.487,24 | -52.026,24
7. Value adjustments |  | -138.391,21 | -781.148,93
a) in respect of formation expenses and of tangible and intangible fixed assets |  | -138.391,21 | -781.148,93
b) in respect of current assets |  | — | —
8. Other operating expenses |  | -86.831,45 | -252.739,49
9. Income from participating interests | [n.20] | 594.331.857,21 | 36.828.488,49
a) derived from affiliated undertakings |  | 594.331.857,21 | 36.828.488,49
b) other income from participating interests |  | — | —
10. Income from other investments and loans forming part of the fixed assets | [n.21] | 74.471.564,97 | 89.584.901,77
a) derived from affiliated undertakings |  | 54.095.922,59 | 69.461.273,22
b) other income not included under a) |  | 20.375.642,38 | 20.123.628,55
11. Other interest receivable and similar income | [n.22] | 232.058.815,67 | 359.651.766,99
a) derived from affiliated undertakings |  | 122.264.921,69 | 185.234.823,07
b) other interest and similar income |  | 109.793.893,98 | 174.416.943,92
12. Share of profit or loss of undertakings accounted for under the equity method |  | — | —
13. Value adjustments in respect of financial assets and of investments held as current assets | [n.23] | -625.773,68 | 3.985.480,76
14. Interest payable and similar expenses | [n.24] | -205.161.915,64 | -302.666.724,89
a) concerning affiliated undertakings |  | -43.944.547,02 | -119.653.473,28
b) other interest and similar expenses |  | -161.217.368,62 | -183.013.251,61
15. Tax on profit or loss | [n.25] | -13.442.039,49 | -1.283.420,93
16. Profit or loss after taxation |  | 679.405.015,46 | 183.162.138,38
17. Other taxes not shown under items 1 to 16 | [n.26] | -3.896.023,50 | -3.803.761,00
18. Profit or loss for the financial year |  | 675.508.991,96 | 179.358.377,38

The accompanying notes are an integral part of these annual accounts.

Telecom Italia Finance Société Anonyme | 9

2025 Annual Report
Annual Accounts

Cash Flow Statement

TELECOM ITALIA FINANCE S.A. CASH FLOW STATEMENT AS AT DECEMBER 31, 2025
[EUR] |  | 31 DECEMBER 2025 | 31 DECEMBER 2024
Operating Activities |  |  |
Net profit |  | 675.508.991,96 | 179.358.377,38
Adjustments for |  |  |
Amortization of formation expenses and on tangible and intangible fixed assets |  | 138.391,21 | 781.148,93
Amortization and impairment of intangible assets |  | — | —
Value adjustments in respect of financial assets | [n.23] | -360.265,00 | -4.076.149,51
Value adjustments in respect of investments held as current assets | [n.23] | 986.038,68 | 90.668,75
Capital gains/losses realised on disposal of non- current and current assets |  | -20.375.744,41 | -20.124.155,08
Finance Income |  | -867.044.555,98 | -464.658.107,77
Finance Expenses |  | 204.932.565,48 | 302.384.794,99
Changes in trade and other receivables |  | -67.530,32 | 155.139,67
Changes in trade and other payables |  | -443.895,47 | -122.231,60
Income Taxes Paid |  | — | —
Net cash flows from operating activities |  | -6.726.003,85 | -6.210.514,24
Cash flows from Investing activities |  |  |
Changes in Property, plant and equipment | [n.4] | -920,27 | -15.572,58
Changes in Participations, funds and other securities | [n.9/23] | 311.999.292,77 | 428.445.763,71
Investments and re-payments in Financial Receivables |  | -1.539.097.654,59 | 272.017.716,14
Interest, commissions and other financial income received |  | 199.934.265,40 | 403.664.991,75
Dividends received |  | 553.789.232,89 | 70.601.110,20
Income received from participations and funds |  | — | -10.668,78
Net cash flows from Investing activities |  | -473.375.783,80 | 1.174.703.340,44
Cash flows from Financing activities |  |  |
Net change in short-term Financial Payables |  | 118.764.770,38 | -769.191.346,57
Proceeds from borrowings |  | — | —
Repayments of borrowings |  | — | -5.307.517,24
Interest, commissions and other financial expenses paid |  | -118.576.712,71 | -314.793.112,11
Dividends paid | [n.13] | -120.000.000,00 | —
Net cash flows from financing activities |  | -119.811.942,33 | -1.089.291.975,92
Net Increase / Decrease in Cash and Cash Equivalents ("C&CE") |  | -599.913.729,98 | 79.200.850,28
Net foreign exchange differences in C&CE |  | 14.343.321,89 | 15.638.901,89
Cash and cash equivalents at 01 January |  | 1.571.895.557,70 | 1.477.055.805,53
Cash and cash equivalents at the end of the year | [n.10] | 986.325.149,61 | 1.571.895.557,70

The accompanying notes are an integral part of these annual accounts.

10 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Notes to the Annual Accounts

as at December 31, 2025, which have been authorized by the Board of Directors held on March 09, 2026.
Note 1 – General information
Telecom Italia Finance (the “Company”, “TI Finance”) was incorporated on June 2, 2000 for an unlimited
duration. The registered office is established at 12, Rue Eugène Ruppert L-2453 Luxembourg. The registered
number is B 76.448.
The corporate object is to provide any financial assistance to TIM S.p.A. (the “Parent Company”) itself as well
as to all companies in which the Parent Company has a direct or indirect interest. This is implemented by the
provision of loans and the granting of guarantees or securities in any kind or form. The object of the Company
is further to provide domiciliation and administration services to companies being part of the TIM Group and to
exercise any activity in relation thereto as provided in the law of May 31, 1999 on the domiciliation of
companies, as amended. The Company may acquire and hold interests in Luxembourg and/or in foreign
undertakings. The Company may also use its funds to invest in real estate and in intellectual property rights in
any kind or form. The Company may participate at the creation and development of any other companies and
entities and provide financial assistance in any kind or form. The Company may borrow in any kind or form and
issue bonds or notes. Generally, the Company may carry out any commercial, industrial or financial operation,
relating directly or indirectly to its object.
The financial year begins on January 1st and ends on December 31st of each year.
The official version of the accounts is the ESEF version available at the Officially Appointed Mechanism (OAM)
at the Bourse of Luxembourg (https://www.bourse.lu/oam).
Note 2 – Summary of significant accounting policies
Basis of preparation
The accounts in hand are prepared in accordance with the accounting principles and regulations generally
accepted in the Grand Duchy of Luxembourg (“Luxembourg GAAP”) under the historical cost convention.
As allowed by the amended law of December 19, 2002, the Board of Directors of the Company has decided to
include the cash flow statement based on the indirect method.
Euro (EUR) is the book accounting currency.
Use of estimates
The preparation of financial statements in accordance with Luxembourg GAAP, requires Board of Directors to
make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the accounts, and reported amounts of revenues and expenses
during that reporting period. Actual results could differ from those estimates.
Foreign currency translation
The Company follows the multi-currency accounting policy that consists in recording the assets and the
liabilities in their original currencies, the same being converted into EUR at the balance sheet date.
The exchange differences arising from the transactions expressed in currencies other than EUR are hedged
either by balanced deposits and loans or through derivative instruments, such as Cross Currency Interest Rate
Swaps (“CCIRS”) or foreign exchange agreements, all hereby referred to as “currency swaps”.
Currency swaps combine two positions that are represented by the amounts that will be exchanged with the
counterparty at the maturity of the contract. They are recorded as assets or liabilities to the net between the
payable and the receivable amount. Generally, one is in EUR and the other in currencies other than EUR. This
latter is converted into EUR at the balance sheet date.
The unrealized exchange differences that arise from all these conversions are reflected in the profit and loss
account in the items “Other interest and similar expenses/Other interest and similar income”.
The realized income and charges in currencies other than EUR are recorded in their respective currencies and
converted at the exchange rate prevailing on the respective transaction dates.

Telecom Italia Finance Société Anonyme | 11

2025 Annual Report
Notes to the Annual Accounts

The exchange rates used to translate foreign assets and liabilities are summarized in the table here below.

Local currency against 1 EUR | 31 December 2025 | 31 December 2024
BRL (Brazilian real) | 6,46532 | 6,43318
CHF (Swiss franc) | 0,93140 | 0,94120
GBP (Pound sterling) | 0,87260 | 0,82918
JPY (Japan Yen) | 184,09000 | 163,06000
USD (U.S. dollar) | 1,17500 | 1,03890

Formation expenses
Formation expenses may include incorporation expenses and bond issuance expenses. Incorporation expenses
are valued at purchase price including the expenses incidental thereto less cumulated depreciation amounts
written off over maximum 5 years. Bond issuance expenses are written off on a straight-line basis over the
period of the note.
Tangible assets
Tangible assets are stated at cost less accumulated depreciation and any impairment adjustments.
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. The carrying
values of tangible assets are reviewed for impairment when events or changes in circumstances indicate that
the carrying value may not be recoverable.
Financial assets
Shares in affiliated undertakings and participating interests are valued at purchase price, including the expense
incidental thereto. Loans to affiliated undertakings are valued at nominal value including the expense
incidental thereto. The contingent write-downs are recorded in case of a permanent impairment loss of the
investments estimated by the Board of Directors while comparing the net book value with the market value or
with the net equity of the company. These value adjustments are not continued if the reasons for which the
value adjustments were made have ceased to apply.
Debtors
Debtors are valued at their nominal value. They are subject to value adjustments where their recovery is
compromised. These value adjustments are not continued if the reasons for which the value adjustments were
made have ceased to apply.
Other investments
Transferable securities in current assets are evaluated to the lower between the market value and the
acquisition cost. A value adjustment is recorded where the market value is lower than the purchase price.
These value adjustments are not continued if the reasons for which the value adjustments were made have
ceased to apply.
Cash at bank and in hand
Cash at bank and in hand is defined as cash in hand, demand deposits and short-term, highly liquid
investments readily convertible to known amounts of cash and subject to insignificant risk of changes in value.
Cash at bank and in hand and short-term deposits which are held to maturity are carried at cost.
Accrued interest
Accrued interest are shown with their principal amount.
Prepayments/Deferred income
“Prepayments” and “Deferred income” accounts include prepaid charges and deferred income.
Issue discounts and issue premiums are listed with the related notes, while other similar charges are classified
in “Formation expenses”. All are amortized through the profit and loss account on a straight-line basis over the
lifetime of the notes.
Derivative instruments
The commitments related to derivative instruments are recorded off-balance sheet at their nominal value as of
transaction date. Only interest accruals and differential on exchange rates on currency swaps are booked.
In case of negative Mark to Market value of non-hedging instruments at the financial statements closing date,
a provision is recorded.

12 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Creditors
Creditors are recorded at their reimbursement value. Where the amount repayable on account is greater than
the amount received, the difference is shown in the same line of the debt and is written off over the period of
the debt based on a linear method.
Provisions
Provisions are recognized when the Company has a present obligation as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate can be made of the amount of the obligation.
Note 3 – Formation expenses
All the formation expenses of EUR 913.425,12 (EUR 1.042.649,98 as per December 31, 2024) consist of issuance
expenses related to long-term debts. Movements for the period are only due to depreciation.
Note 4 – Other fixtures and fittings, tools and equipment

EUR | 31 December 2025 | 31 December 2024
Net Book Value at the beginning of the year | 20.064,72 | 13.633,53
Gross Book Value at the beginning of the year | 219.733,01 | 347.442,84
Acquisitions during the year | 1.072,20 | 16.099,11
Disposal or reductions during the period | 6.386,06 | 143.808,94
Gross Book Value at the end of the year | 214.419,15 | 219.733,01
Accumulated value adjustments at the beginning of the year | 199.668,29 | 333.809,31
Value adjustments during the year | 9.166,34 | 9.667,92
Disposal or reduction during the period | 6.336,16 | 143.808,94
Accumulated value adjustments at the end of the year | 202.498,47 | 199.668,29
Net Book Value at the end of the year | 11.920,68 | 20.064,72

Telecom Italia Finance Société Anonyme | 13

2025 Annual Report
Notes to the Annual Accounts

Note 5 – Shares in affiliated undertakings and Participating interests

|  |  |  |  | Net Book value | Gross book value | Value Adjustments | Net Book value
|  |  | Ownership (%) | Number of shares | at the beginning of the year | at the beginning of the year | other changes during the year | at the end of the year | at the beginning of the year | other changes during the year | at the end of the year | at the end of the year
1. Shares in affiliated undertakings |  |  |  |  |  |  |  |  |  |
TIM Brasil Serviços e Participações S.A. | [1] [2] | Rua Fonseca Teles, nº 18 a 30, Bloco D, Térreo, São Cristóvão, Rio de Janeiro (Brazil) | 99,99 | 15.865.086.849 | 3.182.997.707,76 | 3.182.997.707,76 | — | 3.182.997.707,76 | — | — | — | 3.182.997.707,76
Total EUR |  |  |  |  | 3.182.997.707,76 | 3.182.997.707,76 | — | 3.182.997.707,76 | — | — | — | 3.182.997.707,76
3. Participating interests |  |  |  |  |  |  |  |  |  |  |  |
Lauro Dodici S.p.A., in liquidazione |  | Piazza degli Affari 2, Milan (Italy) | 3,05 | 5.000 | — | 67.080,38 | — | 67.080,38 | 67.080,38 | — | 67.080,38 | —
Total EUR |  |  |  |  | — | 67.080,38 | — | 67.080,38 | 67.080,38 | — | 67.080,38 | —

[1] The amount of capital and reserves for TIM Brasil Serviços e Participações S.A. are: Capital : 8.223 BRL ( 1.272 EUR) ; Reserves : 1.526 BRL (236 EUR) ; Result of the year : 1.999 BRL (317 EUR) in millions as of December 31, 2025.
[2] The Net Book Value is annually assessed with a strong focus on the market value of the Company's main holding (TIM S.A.). Given that the analysis is carried out in Brazilian Reais and then translated into Euro, the assessment takes into account macro-
economic factors related to Brazil and its currency exchange versus Euro. The Fair Value as at December 31, 2025 is equal t o 4.528 million EUR and c orresponds to the owned percentage of the Market Cap of the operating Company TIM S.A., net of the net
debt of TIM Brasil Serviços e Participações S.A.. As a result of the analysis carried out no impairment indicators were identified.

14 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Note 6 – Loans to affiliated undertakings
This item is composed by EUR 754.808.029,05 being the total amount of medium-long term loans granted to
the Parent Company (2024 – EUR 768.819.754,93). The detail by final payment date is as follows:

EUR | 31 December 2025 | 31 December 2024
Nominal value: EUR 646.165.517,24 Expiring July 29, 2033 Fixed rate: 8,00000% | 646.165.517,24 | 646.165.517,24
Nominal value: JPY 20.000.000.000 [*] Expiring October 29, 2029 Floater rate: Tonar + 0,94625% | 108.642.511,81 | 122.654.237,70
Total to Parent Company | 754.808.029,05 | 768.819.754,94
| 754.808.029,05 | 768.819.754,93

[*] Differences between December 31, 2025 and December 31, 2024 are due to exchange rate impact.
The Board of Directors is of the opinion that the value of the loans above is fully recoverable.
Note 7 – Amounts owed by affiliated undertakings
a) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Loans - Principal and accrued interest and commissions |  |
Olivetti S.p.A. Società Benefit | 95.099.789,58 | 90.336.590,85
Olivetti UK Limited | 3.340.297,76 | 3.041.137,85
Panama Digital Gateway S.A. | 9.375.718,62 | 9.536.428,53
Telecom Italia Capital | 71.174,39 | 65.968,91
TI Sparkle Brasil Telecomunicacoes Ltda | 7.319.746,56 | 10.192.030,11
TI Sparkle Bulgaria EOOD | 806.872,35 | 904.676,56
TI Sparkle Colombia Ltda | 1.108.041,12 | 1.439.761,65
TI Sparkle Greece SA | 26.056.612,41 | 23.306.030,62
TI Sparkle Panama s.a. | 8.002.206,89 | 8.874.465,45
TI Sparkle Puerto Rico LLC | 3.050.169,33 | 3.409.784,31
TI Sparkle Turkey Telekomunikasyon AS | 5.599.012,11 | 6.287.597,24
TI Sparkle Lagos Limited | 688.920,70 | 771.338,26
TI Sparkle St Croix LLC | 1.695.889,89 | 1.895.649,16
TIM S.p.A. | 2.425.063.281,94 | 894.959.346,75
Dividends receivable |  |
TIM Brasil Serviços e Partecipações S.A. | 28.923.549,03 | 1.652.357,90
Derivatives |  |
Accruals on derivatives with Parent Company | 3.047.116,25 | 3.532.654,69
Currency swaps with TIM Group companies | 449.268,98 | 105.360,55
Other receivables from Parent Company | — | 142.662,23
Other receivables from TIM Group companies | 28.782,00 | 28.226,26
| 2.619.726.449,91 | 1.060.482.067,88

The Board of Directors is of the opinion that the value of the loans above is fully recoverable.
b) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Currency swaps with Parent Company | 65.557.488,19 | 51.545.762,30
| 65.557.488,19 | 51.545.762,30

Telecom Italia Finance Société Anonyme | 15

2025 Annual Report
Notes to the Annual Accounts

Note 8 - Other debtors
a) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Accruals on derivatives | 1.327.266,03 | 1.440.746,02
Other receivables | 1.268.664,16 | —
| 2.595.930,19 | 1.440.746,02

b) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Receivable from Lehman Brothers Special Financing Inc. in liquidation (“LBSF”) | 116.456,36 | 155.637,44
Currency swaps | 249.398,47 | 16.973.306,53
Guarantee deposits | 25.531,92 | 28.876,70
| 391.386,75 | 17.157.820,67

The receivable from LBSF was originally booked for EUR 25.016.035,74. Based on the documentation filed with
the US Courts, the position has been converted during 2009 from EUR into USD for an amount of USD
35.552.789,99 and then in 2012 updated to USD 35.590.272,35.
The credit in hands is supported by the guarantee from Lehman Brothers Holding Inc. in liquidation ("LBHI").
As of December 31, 2025 the following amounts have been distributed by LBSF and LBHI to TI Finance and the
receivable has been consequently reduced:

Distributions between 2012 and 2024 | USD | 24.258.191,43
Distributions of the year: |  |
On April 03, 2025 | USD | 14.615,85
On October 02, 2025 | USD | 10.239,67
| USD | 24.283.046,95

The receivable is registered at its recoverable value of 1,21% (USD 136.836,22) of the residual value.
Note 9 - Other investments
This item refers to the accrued value of the securities in portfolio for an amount of EUR 791.353.519,44 (EUR
1.084.718.530,81 at December 31, 2024).

EUR | 31 December 2025 | 31 December 2024
Notes from other issuers | 791.353.519,44 | 1.084.718.530,81
| 791.353.519,44 | 1.084.718.530,81

The notes from other issuers consists of 253 million euros (418 million euros at December 31, 2024) of Italian
treasury bonds and 538 million euros (667 million euros at December 31, 2024) of other bonds with different
maturities, all with an active market and consequently readily convertible into cash.
Note 10 - Cash at bank and in hand

EUR | 31 December 2025 | 31 December 2024
Cash in hand | 90,37 | 124,71
Bank current accounts | 3.159.101,79 | 207.416.426,03
Bank term deposit accounts | 983.165.957,45 | 1.364.479.006,96
Cash and cash equivalent as shown in Cash Flow Statement | 986.325.149,61 | 1.571.895.557,70
Other Liquid Assets | 1.712,27 | 4.120,53
Accruals | 121.553,57 | 376.821,49
| 986.448.415,45 | 1.572.276.499,72

16 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Note 11 - Subscribed capital
As of December 31, 2025 and December 31, 2024 the authorized, issued and fully paid capital of
1.818.691.978,50 EUR is represented by 185.960.325 ordinary shares with a nominal value EUR 9,78 per share.
As of December 31, 2025 and December 31, 2024 the Company is 100% held by TIM S.p.A.
Note 12 - Share premium account
The extraordinary shareholder meeting held on July 28, 2016 that approved the merger with Telecom Italia
International N.V. decided to increase the share capital of the Company by EUR 1.276.601.737,50 through the
creation and issue of 130.531.875 shares with a nominal value of EUR 9,78 each.
The issue of new shares has been made together with a share premium of EUR 3.147.555.262,50, in exchange
for all the assets and liabilities of the absorbed company, as they appeared in the 2015 accounts.
Note 13 - Reserves
Reserves are split as follows:

EUR | December 31, 2025 | December 31, 2024
Legal reserve | 123.882.006,45 | 114.914.087,58
Other reserves: |  |
Other distributable reserves | 51.489.941,85 | 51.489.941,85
Total other reserves | 51.489.941,85 | 51.489.941,85

The Company is required to allocate a minimum of 5% of its annual net income to a legal reserve, until this
reverse equals 10% of the subscribed share capital. This reserve cannot be distributed. Legal reserve is detailed
as below:

shareholder meeting from 2008 to 2024 | EUR | 114.914.087,58
shareholder meeting of April 9, 2025 | EUR | 8.967.918,87
| EUR | 123.882.006,45

Movements for the year on the reserves and profit and loss items are as follows:

EUR | Legal Reserve | Other distributable reserves | Profit or Loss brought forward | Profit or Loss for the financial year
Balance as at 31.12.2024 | 114.914.087,58 | 51.489.941,85 | 1.132.545.837,11 | 179.358.377,38
Movements for the year: |  |  |  |
Allocation of prior year’s profit | 8.967.918,87 | — | 50.390.458,51 | -59.358.377,38
Dividend distributed [*] | — | — | — | -120.000.000,00
Profit for the year | — | — | — | 675.508.991,96
Balance as at 31.12.2025 | 123.882.006,45 | 51.489.941,85 | 1.182.936.295,62 | 675.508.991,96

[*] On April 14, 2025 a dividend of EUR 120.000.000,00 has been paid to the sole shareholder as part of allocation of prior
year profit.
Note 14 - Provisions for taxation

EUR | 31 December 2025 | 31 December 2024
Chamber Of Commerce Fee | 140,00 | 140,00
| 140,00 | 140,00

Telecom Italia Finance Société Anonyme | 17

2025 Annual Report
Notes to the Annual Accounts

Note 15 - Other provisions
In the framework of the liquidation of the 100% owned subsidiary, Olivetti Holding N.V., TI Finance on 2012
acquired the obligation to take part to the decontamination of a site in Burlington, New Jersey (USA), formerly
owned by an Olivetti’ subsidiary. Olivetti Holding transferred as well a provision for the completion of the
concerned activity.

EUR | 31 December 2025 | 31 December 2024
Provisions for expenses linked to the decontamination of a site in USA | 1.049.818,49 | 1.081.299,37
Other provisions | — | 50.000,00
| 1.049.818,49 | 1.131.299,37

Note 16 - Non convertible loans
i) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Issue premiums on notes - Current portion | 184.533,11 | 184.533,11
Issue discounts on notes - Current portion | -151.710,00 | -151.710,00
Accrued interest on notes | 47.626.072,03 | 47.634.823,20
| 47.658.895,14 | 47.667.646,31

ii) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Nominal value: EUR 655.858.000,00 Expiring January 24, 2033 Fixed rate: 7,7500% | 655.858.000,00 | 655.858.000,00
Issue premiums on notes - Long term portion | 1.119.837,95 | 1.304.371,05
Issue discounts on notes - Long term portion | -920.651,06 | -1.072.361,06
| 656.057.186,89 | 656.090.009,99

Note 17 - Amounts owed to credit institutions
a) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Payables to banks | 389.747.888,84 | 274.767.335,22
Accrued interest | 3.772.104,88 | 3.513.375,52
| 393.519.993,72 | 278.280.710,74

The item "Payable to Banks" includes EUR 333.542.988 (EUR 198.854.920 as of December 31, 2024) of short-
term capital raised by entering in repurchase agreements (“Repo”).
Further details are provided in the Note "Off balance sheet commitments".
b) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Nominal value: JPY 20.000.000.000 [*] Expiring October 29, 2029 Fixed rate: 6,7500% | 108.642.511,81 | 122.654.237,70
| 108.642.511,81 | 122.654.237,70

[*] Differences between December 31, 2025 and December 31, 2024 are due to exchange rate impact.

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2025 Annual Report
Notes to the Annual Accounts

Note 18 - Amounts owed to affiliated undertakings
This item refers to the sums owed to TIM Group companies, including accrued values under deposit
agreements , accruals on interest rate swaps with Parent and TIM Group companies and currency swaps with
TIM Group companies.
a) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Borrowings and other payables – Principal and accrued interest |  |
Telecom Italia Capital | 120.110.770,81 | 115.592.185,82
TI Sparkle Puerto Rico LLC | — | 22.203,40
TIM San Marino S.p.A. | 4.968.326,91 | 5.855.803,17
TIM S.p.A. | 287.371,96 | 308.055,38
Derivatives |  |
Accruals on derivatives with Parent Company | 1.565.251,96 | 1.797.238,40
Accruals on derivatives with TIM Group companies | 210.045,54 | 67.113,08
Currency swaps with TIM Group companies | — | 169.413,33
| 127.141.767,18 | 123.812.012,58

b) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Currency swaps with Parent Company | 249.398,47 | 16.973.306,53
| 249.398,47 | 16.973.306,53

Note 19 - Other creditors
a) becoming due and payable within one year

EUR | 31 December 2025 | 31 December 2024
Accruals on derivatives | 1.483.109,44 | 1.763.756,82
Currency swaps | 1.359.455,75 | 258.153,11
Others | 45,50 | 569,11
| 2.842.610,69 | 2.022.479,04

b) becoming due and payable after more than one year

EUR | 31 December 2025 | 31 December 2024
Currency swaps | 65.557.488,19 | 51.545.762,30
| 65.557.488,19 | 51.545.762,30

Note 20 - Income from participating interests
a) derived from affiliated undertakings

EUR | 31 December 2025 | 31 December 2024
Dividend received |  |
TIM Brasil Serviços e Partecipações S.A. | 594.331.857,21 | 36.828.488,49
| 594.331.857,21 | 36.828.488,49

Telecom Italia Finance Société Anonyme | 19

2025 Annual Report
Notes to the Annual Accounts

Note 21 - Income from other investments and loans forming part of the fixed assets
a) derived from affiliated undertakings

EUR | 31 December 2025 | 31 December 2024
Interest on long term loans to Parent Company | 54.095.922,59 | 68.204.772,35
Interest on long term loans to TIM Group companies | — | 1.256.500,87
| 54.095.922,59 | 69.461.273,22

b) other income not included under a)

EUR | 31 December 2025 | 31 December 2024
Gain on securities disposal | 20.375.642,38 | 20.123.628,55
| 20.375.642,38 | 20.123.628,55

Note 22 - Other interest receivable and similar income
a) derived from affiliated undertakings

EUR | 31 December 2025 | 31 December 2024
Interest and commissions on receivables from Parent Company | 54.516.028,96 | 90.634.169,38
Interest and commissions on receivables from TIM Group companies | 5.775.801,93 | 13.091.224,93
Income on derivatives with Parent Company | 20.259.450,99 | 36.699.379,26
Income on derivatives with TIM Group companies | 4.059.532,83 | 35.842.720,72
Gain on exchange rates with Parent Company | 30.735.633,95 | 5.280.259,83
Gain on exchange rates with TIM Group companies | 6.918.473,03 | 3.687.068,95
| 122.264.921,69 | 185.234.823,07

b) other interest and similar income

EUR | 31 December 2025 | 31 December 2024
Interest on other securities | 22.511.620,60 | 17.665.532,11
Interest on banks | 15.681.314,98 | 24.600.354,57
Other interest, income and commissions | 59.677,16 | 47.543,91
Income on derivatives with banks | 18.575.891,04 | 75.864.570,16
Gain on exchange rates | 52.965.390,20 | 56.238.943,17
| 109.793.893,98 | 174.416.943,92

Note 23 - Value adjustments in respect of financial assets and of investments held as current assets

EUR | 31 December 2025 | 31 December 2024
Reversal of adjustments on securities | 360.265,00 | 4.084.976,76
Value adjustments on securities | -986.038,68 | -90.668,75
Value adjustments on Lauro Dodici S.p.A. | — | -8.827,25
| -625.773,68 | 3.985.480,76

20 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Note 24 - Interest payable and similar expenses
a) concerning affiliated undertakings

EUR | 31 December 2025 | 31 December 2024
Guarantee fee due to Parent Company | -229.350,16 | -281.929,90
Charges on derivatives with Parent Company | -11.781.189,06 | -23.565.124,89
Charges on derivatives with TIM Group companies | -5.664.529,68 | -54.244.339,22
Interest due to TIM Group companies | -2.648.667,35 | -2.918.671,00
Losses on exchange rates with Parent Company | -14.011.725,89 | -19.816.433,77
Losses on exchange rates with TIM Group companies | -9.609.084,88 | -18.826.974,50
| -43.944.547,02 | -119.653.473,28

b) other interest and similar expenses

EUR | 31 December 2025 | 31 December 2024
Interest and charges to banks | -20.135.382,39 | -41.461.058,33
Interest and charges on debentures | -50.787.420,73 | -64.489.196,93
Charges on derivatives | -36.238.877,55 | -64.615.967,47
Other financial charges and commissions | -248.594,79 | -1.974.111,76
Other charges from equity investments | — | -10.668,78
Losses on securities disposal | -315.216,86 | -193.697,59
Losses on exchange rates | -53.491.876,30 | -10.268.550,75
| -161.217.368,62 | -183.013.251,61

Note 25 - Tax on profit or loss

EUR | 31 December 2025 | 31 December 2024
Withholding tax on interest received | -284.516,55 | -1.283.420,93
Withholding tax on dividends and income received from equity investments | -13.157.522,94 | —
| -13.442.039,49 | -1.283.420,93

Note 26 - Other taxes not shown under items 1 to 16
The amount of EUR -3.896.023,50 (EUR -3.803.761,00 2024) includes payments and provisions for Net Wealth
Tax.
Note 27 - Guarantees
All issued notes, derivative instruments and debts towards other financial institutions are guaranteed by the
Parent Company.

Telecom Italia Finance Société Anonyme | 21

2025 Annual Report
Notes to the Annual Accounts

Note 28 - Off balance sheet commitments
The table here below reports the sum of the notional amount for derivative agreements entered by the
Company.

EUR | 31 December 2025 | 31 December 2024
Cross Currency Interest Rate Swaps (“CCIRS”) [*] | 247.193.355,47 | 261.205.081,36
Foreign exchange agreements | 389.664.354,56 | 53.846.782,85
Options | — | 472.223.428,74
| 636.857.710,03 | 787.275.292,95

The table here below reports the net sum of the mark to market value (“MTM”) of the above reported
derivative agreements.

EUR | 31 December 2025 | 31 December 2024
Cross Currency Interest Rate Swaps (“CCIRS”) [*] | 19.007.691,74 | 29.799.914,42
Foreign exchange agreements | -885.487,78 | -330.389,39
Options | — | 11.345.104,83
| 18.122.203,96 | 40.814.629,86

[*] In these instruments contracts no exchange of notional amounts has been agreed with the counterparties.
In addition, the Company entered into some derivatives on other TIM Group companies’ request. Since TI
Finance has a contract with an external counterparty and the opposite contract with an intercompany, the
MTM exposure on these positions is neutral and there is no risk connected.
The table here below reports the sum of the notional amount for such derivatives.

EUR | 31 December 2025 | 31 December 2024
Cross Currency Interest Rate Swaps (“CCIRS”) | 603.220.352,00 | 603.220.352,00
Interest Rate Swaps (“IRS”) | 255.319.148,94 | 288.766.965,06
| 858.539.500,94 | 891.987.317,06

As of December 31, 2025, the Company raised short-term capital (note "Amounts owed to credit institutions")
with government bonds (note "Other investments") serving as collateral for a total value of EUR 334 million by
entering in repurchase agreements (“Repo”) expiring in the first weeks of 2026.
Note 29 - Tax situation
The Company is subject to the fiscal law in force in Luxembourg applicable to all commercial companies.
The Company is in scope of the OECD Pillar Two model rules (“the Pillar Two Rules”). The Pillar Two Rules have
been enacted in Luxembourg and include the Inclusion Rule (“IIR”) and the Qualified Domestic Minimum Top-
up Tax (“QDMTT”), effective from 31 December 2023, as well as the Undertaxed Profits Rule (“UTPR”), effective
from 31 December 2024. The legislation imposes a minimum 15% effective tax rate. The estimated liability
related to Pillar Two income taxes is not material based on the most recently available financial information of
the Group and covers both the QDMTT and the top up taxes triggered by IIR.
Deferred tax assets have not been recognized in respect of the following items:

EUR | 31 December 2024 | Utilization for the period | 31 December 2025
Tax Losses carried forward | 444,4 | (173,6) | 270,8
Deferred tax assets, net | 106,1 | (41,4) | 64,6

22 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Notes to the Annual Accounts

Note 30 - Consolidation
The accounts of the Company are included in the consolidated accounts of TIM S.p.A., which are available at its
registered office located in Milano, Via Negri 1, Italy and on the website http://www.telecomitalia.com.
TIM S.p.A. accounts are not consolidated in the accounts of any other company.
Starting from 2016 the Company produces a set of consolidated accounts according to IFRS as adopted by the
European Union.
Note 31 - Directors remuneration
Only the independent Directors are remunerated in their capacity as Directors. The remuneration of
independent members, including their participation in the Audit Committee, amounts to EUR 38.000,00 per
annum. No Director has an interest in the share capital of the Company.
Note 32 - Staff
As of December 31, 2025 the Company had on its payroll 10 employees (December 31, 2024 – 10 ). The average
of employees during the fiscal period has been of 9,75 resources (December 31, 2024 – 9,58).
Note 33 - Litigations
The litigations in which the Company is involved as per December 31, 2025 or has been involved during the
2025 are described here below.
• Brazil - Opportunity Arbitration
In May 2012, TIM and Telecom Italia International N.V. (now merged in Telecom Italia Finance) were served
with a notice of arbitration proceedings brought by the Opportunity group, claiming compensation for
damages allegedly suffered for presumed breach of a settlement agreement signed in 2005. Based on the
claimant’s allegations, the damages relate to circumstances that emerged in the criminal proceedings pending
before the Milan Court regarding, inter alia, unlawful activities engaged in by former employees of TIM.
The investigatory phase having been completed, the hearing for oral discussion took place in November 2014,
after which the parties filed their concluding arguments in preparation for the decision on the case.
In September 2015, the Board of Arbitration declared the proceedings closed, as the award was going to be
filed.
In September 2016 the ICC Court notified the parties of its judgment, based on which the Court of Arbitration
rejected all the claims made by the Opportunity group and decided that the legal costs, administrative costs
and costs for expert witnesses should be split between the parties (the “2016 Arbitration Award”).
In April 2017 the Opportunity group filed an appeal against the 2016 Arbitration Award before the Paris Court
of Appeal.
In November 2017, TIM and Telecom Italia Finance received from the Secretariat of the ICC’s International
Court of Arbitration notice of a Request for Revision of the 2016 Arbitration Award, filed by the Opportunity
group, asking for a new award. A Board of Arbitration was subsequently established.
In October 2018, TIM and Telecom Italia Finance requested proceedings with the Paris Court of Appeal to be
suspended, in the light of proceedings pending with the Court of Arbitration of the International Chamber of
Commerce to review the same 2016 Arbitration Award. In November 2018, the Paris Court of Appeal
suspended the proceedings until the decision is taken by the Court of Arbitration in the review proceedings.
As regards the proceedings to review the 2016 Arbitration Award, in October 2019 the ICC held the discussion
hearing in Paris. In August 2020, the Arbitration Court issued the award rejecting the Request for Revision
presented by the Opportunity Group (the “2020 Arbitration Award”).
In December 2020, the Opportunity group filed an appeal against the 2020 Arbitration Award before the Paris
Court of Appeal. In May 2021 the Opportunity group asked the Paris Court of Appeal to summarize the
proceedings brought against the 2016 Arbitration Award. Thereafter, the Opportunity Group, TIM and Telecom
Italia Finance filed their briefs in the two proceedings pending before the Paris Court of Appeal, respectively
against the 2016 Arbitration Award and the 2020 Arbitration Award. The appeal proceedings were heard on
January 8, 2024. In its decision of May 2, 2024, the Paris Court of Appeal quashed the 2016 Arbitration Award
on the grounds that the Court considered one of the members sitting on the arbitration panel to be affected by
a conflict of interest. In a separate decision issued on the same date, the Court ordered the reopening of the
2020 Arbitration Award proceedings and, on June 24, 2024, observations were submitted on the consequences
that the quashing of the 2016 Arbitration Award may have in relation to the appeal against the 2020
Arbitration Award. Proceedings are still pending.
On June 20, 2024, TIM and Telecom Italia Finance lodged an appeal with the Court of Cassation against the
judgment quashing the 2016 Arbitration Award.

Telecom Italia Finance Société Anonyme | 23

2025 Annual Report
Notes to the Annual Accounts

On September 3, 2024, the Paris Court of Appeal rejected Opportunity's petition to set aside the 2020 Award
following the annulment of the 2016 Award. The proceedings have therefore been stayed until the outcome of
the case initiated in the Court of Cassation, with the 2020 Award remaining in effect.
On December 19, 2024, TIM and Telecom Italia Finance filed a statement of defense in the proceedings before
the Supreme Court, aimed at overturning the decision of the Paris Court of Appeals to quash the 2016
Arbitration Award.
On January 21, 2026, the Court of Cassation confirmed the Court of Appeal’s decision to annul the 2016 Award,
due to issues related to the participation in the arbitral panel of a member whom the Court considered to be in
a conflict of interest.
There has been no change in the management risk assessment.
Note 34 - Auditor’s fees
During the year 2025 a total of EUR 144.722,75 (VAT excluded) has been paid to Ernst & Young S.A. for the
audit activity ( 2024 - EUR 90.556,95 ).
No other amount has been paid to the Auditor.

24 | Telecom Italia Finance Société Anonyme

2025 Annual Report
Declaration for the manager responsible for financial reporting

Declaration of the manager responsible for financial reporting

Pursuant to paragraph 3 of Luxembourg’s Transparency Law, the undersigned Fabio Adducchio, Managing
Director of the Company, to the best of his knowledge, hereby declares that the above financial statements
prepared in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the
annual accounts give a true and fair view of the assets, liabilities, financial position and profit or loss of the
issuer and that the management report includes a fair review of the development and performance of the
business and the position of the issuer as at and for the period ended December 31, 2025, together with a
description of the principal risks and uncertainties that the issuer faces.
Fabio Adducchio
Managing Director