TIM Group's profile

[G4-3] The TIM 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 TIM 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 2016. 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 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 TIM and the other operators.

[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 (nationalwholesale), as well as in the domestic Information Technology products and services sector. In addition to the management of the digital multiplexes through Perdisera S.p.A.², 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;
• the “Other Activities” include the financial companies and other minor companies not strictly connected with the Group’s “core business.  

THE 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]   As at 31 December 2016, the reference shareholder is Vivendi S.A., with 23.94% of the ordinary share capital,  [G4-13] The share ownership did not change significantly in 2016, after the 2015 entrance by French shareholder, Vivendi.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 TIM Group.

The shareholding structure as of December 31, 2016 is shown below⁴.

[G4-13]An examination of the share capital structure in the period 2014-2016 shows that in 2016, in addition to the increase in the shareholding owned by Vivendi S.A. (+2.6p.p.), compared to 2015, there was a slight increase in the shareholdings owned by foreign and Italian institutional investors: +2.3p.p. and 0.5p.p. respectively. The shares held by foreign legal entities, during this period, increased slightly (from 3.0% in 2014 to 3.8% in 2016) while the shares held by Italian legal persons decreased slightly, falling from 0.8% in 2014 to 0.5% in 2016.

Lastly, as regards the other Italian shareholders and other foreign shareholders categories, a decrease in ownership over the three-year period (-4.8pp) continued in 2016, slight for other foreign investors.

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

² Perdisera S.p.A. stems from the joint venture stipulated between the network operators Telecom Italia Broadcasting (TIMB) and Rete A, owned by Gruppo Editoriale L’Espresso. The company owns five national digital multiplexes and is

4the supplier of reference for the most important television editors operating in Italy.

³ [G4-7] Also see the TIM Group Consolidated Financial Statements. 

⁴ Source: Register of shareholders as of December 31, 2016, supplemented by communications received and by other available information.