UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF FEBRUARY 2003
TELECOM ITALIA S.p.A.
(Translation of registrant's name into English)
CORSO D'ITALIA 41
ROME, ITALY 00198
(Address of principal executive offices)
Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F:
FORM 20-F [X] FORM 40-F [ ]
Indicate by check mark if the registrant
is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(1): [ ]
Indicate by check mark if the registrant
is submitting the Form 6-K in paper
as permitted by Regulation S-T Rule 101(b)(7): [ ]
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
YES [ ] NO [X]
If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82- _______
[TELECOM ITALIA LOGO]
PRESS RELEASE
MARCO TRONCHETTI PROVERA AND CARLO BUORA ILLUSTRATE THE COMPANY'S 2003-2005
STRATEGIC OBJECTIVES TO THE FINANCIAL COMMUNITY
Milan, 14 February 2003 - Marco Tronchetti Provera and Carlo Buora, respectively
the Telecom Italia Group Chairman and CEO, are today presenting the Group's
strategic objectives for the next three years (2003-2005) to the financial
community.
Under these new strategic objectives, investments over the three-year period are
forecast to range between 14 and 16 billion euros, essentially matching the
targets set for 2002-2004 (16 billion euros).
Net financial borrowings are projected to be around 13 billion euros by the end
of 2005. This further extends the debt reduction policy announced last year,
which set a 2004 debt level target of below 15 billion euros.
Annual average growth rates for revenues (4 - 4.5%) and the gross operating
result (5 - 5.5%) over the three-year period 2003-2005 are expected to sustain
their 2002-2004 levels. Operating income is forecast to rise on average by 8 -
8.5% annually.
Free cash flow (gross operating result - capex +- change to working capital)
will register an improvement of around 30 billion euros as profitability and
efficiency both improve. This compares with the 25 billion euro figure forecast
for the three-year period 2002-2004.
The 2 billion euro efficiency gains target established for the three-year period
2002-2004 has been increased by a further 600 million euros. This will be
achieved through the strict control of operating costs, a selective investment
policy, a tight focus on leveraging synergies at Group level, and centralized
provisioning.
The presentation will be available on the Web at
www.telecomitalia.it/investor_relation.
Telecom Italia
Communication & Media Relations
Corporate Press Office: +39.06.3688.2023 or 2066
www.telecomitalia.it/press
Investor Relations: +39.063.3688.2381 or 3378
www.telecomitalia.it/investor_relation
[TELECOM ITALIA LOGO]
PRESS RELEASE
RICCARDO RUGGIERO ILLUSTRATES DOMESTIC WIRELINE BU 2003-2005 STRATEGIC
OBJECTIVES TO THE FINANCIAL COMMUNITY
Milan, 14 February 2003 - Telecom Italia CEO Riccardo Ruggiero today presents
the Telecom Italia Domestic Wireline Business Unit strategic objectives for the
three year period 2003-2005.
Under these new strategic objectives, revenues are forecast to remain at current
levels or increase slightly, by an average of 0.5% annually; revenue projection
was flat in the 2002- 2004 plan.
Average annual gross operating result growth will be in the region of 2 to 2.5%
(2.5-3% in the 2002-2004 plan); the gross operating result/revenues ratio is
forecast to exceed 49% for 2005.
The new objectives establish a 2003-2005 annual average operating income growth
target in the range of between 4 and 4.5%, and an operating income to revenues
ratio exceeding 31%.
Cumulative Telecom Italia Domestic Wireline investment over the three years
2003-2005 is planned to correspond to around 6,200 million euros. Of this sum,
80% will be innovation-based. The 2002-2004 plan called for the allocation of
around 6,700 million euros.
Residential market broadband access connections will exceed 1.9 million during
2004, an increase of 0.5 million over the existing 1.4 million forecast. The
broadband access target for year-end 2005 (residential, business and wholesale)
is 3.5 million.
The target for Teleconomy subscriptions is around 6.1 million by year-end 2005,
compared with the 5.9 million target set for year-end 2004.
The voice traffic market share at the end of 2005 will essentially match the
2002 year-end figure.
This presentation is available on the Web at
www.telecomitalia.it/investor_relation.
Telecom Italia
Communication & Media Relations
Domestic Wireline Press Office: +39 06.3688.2023 or 2066
www.telecomitalia.it/press
Investor Relations: +39 06/36882381 or 3378
www.telecomitalia.it/investor_relation
[SEAT LOGO]
PRESS RELEASE
PAOLO DAL PINO EXPLAINS STRATEGIC OBJECTIVES FOR 2003-2005 TO THE FINANCIAL
COMMUNITY
Milan, 14 February 2003 - Paolo Dal Pino, Managing Director of Seat PG, presents
to the financial community the strategic objectives of the Group for the coming
three years.
Based on updated objectives and considering the changing economic context,
expected revenues in the period of 2003-2005 will show average annual growth of
between 6% and 8% (8-10% in the 2001-2004 plan). The Gross Operating Profit -
which accounted for 29.8% of revenues in 2002, a level approaching last year's
goal of a GOP exceeding 30% for 2004 - will mark average annual growth in
2003-2005 of between 11% and 13%. Based on present-day objectives, average
annual growth of operating income is expected to reach 27-29%. Net debt, already
reduced by Euro 242 million in 2002, should decrease further in the coming
three-year period, to show a positive net financial position in 2005.
The presentation will be available for viewing on the web site:
www.seat.it/english/incontro_comunita.asp
Telecom Italia Communication & Media Relations
Internet & Media Press Office: +39 06.36882023-2066
Comunicazione.stampa@seat.it
Seat PG Investor Relations: +39 06 51448424
Investor.relations@seat.it
[TIM LOGO]
PRESS RELEASE
TIM GROUP: EURO 12 BILLION IN FREE CASH FLOW TO BE GENERATED IN THE PERIOD
2003-2005
- Growth targets confirmed
- Domestic profitability: stable in the 2002 - 2005 period
- Breakeven for TIM Brasil (at free cash flow level) by 2005
The 2002 results, income and financial objectives, domestic market share and
international operations: these were the principal themes that Marco De
Benedetti's, Chief Executive Officer of TIM, discussed in his address during the
meeting with the financial community in Milan.
Among the 2002-2005 objectives the accumulated 2003-2005 free cash flow (GOP-
Capex) amounting to euro 12 billion was especially highlighted. Revenues will
increase at a compounded average growth rate (CAGR) of 5 - 6% for the domestic
market and 7 - 8% for the Group. GOP is expected to grow at a CAGR of 5 - 6% in
Italy and 8 - 9% for the Group as a whole.
The domestic investment plan forecast for the next three year period will amount
to euro 3.7 billion of which 55% will be specifically earmarked to innovation.
Furthermore, in terms of innovation, the growth in VAS revenues is forecasted to
reach a CAGR of 30 - 40% per annum in the period 2002-2005.
In terms of profitability, the GOP/revenues ratio is forecasted to remain stable
for the domestic market in the period 2002-2005.
As regards the international activities of TIM, particular attention was given
to Brazil where, from 2003 to 2005 the overall amount of investments is
forecasted to reach euro 1.2 billion. The breakeven in the Brazilian operations
at the level of free cash flow will be achieved in 2005. In the same year TIM
aims to reinforce its operations in the country by increasing its market share
to 26% from the present quota of 16% in relation to the penetration of mobile
telephony in Brazil, which is expected to reach 26% (at present 19%).
***
In his address, Marco De Benedetti, referring to the preliminary results already
disclosed, underlined the Company's leadership in terms of innovation and
value-added services. In this respect the results of the Christmas campaign were
very positive: 1.8 million handsets sold (compared to 1.6 million in the 2001
campaign) of which 400 thousand new generation of MMS phones that enable
customers to use the multimedia services that characterise the new business
cycle. On an annual basis MMS handsets sold by TIM amounted to 700 thousand, of
which 100 thousand with built-in camera.
As concerns the financial results, ARPU exhibited a positive growth in 2002
registering in the last quarter an increase of 4% (euro 28.6) with respect to
the same period of last year (euro 27.5).The increase for the entire year stood
at 1%.
Milan, February 14, 2003
Communication&Media Relations: +39 06 3688 2323/2066
TIM Press Office: +39 063688 2499
TIM Investor Relations: + 39 06 3900 3798
www.investor.tim.it
ATTACHMENT
[TIM LOGO]
PRESS RELEASE
TIM: PRELIMINARY RESULTS AS OF DECEMBER 31, 2002
TIM Group:
- Revenues: euro 10.9 billion, 6% higher than 2001
- Gross operating profit: euro 5 billion, 5.9% higher than 2001
- Profitability (GOP/revenues) at 46.4%; confirming last year's performance
confirmed
- GSM service in Brazil launched
- TIM lines worldwide: 39.1 million, 12.2% higher than at 31.12.2001
TIM S.p.A. (results net of former Blu S.p.A)
- Revenues: euro 8.9 billion, 6.7% higher than 2001
- Gross operating profit: euro 4.5 billion, +7.2%
- Profitability (GOP/revenues) at 50.8% (50.6% compared to the preceding fiscal
year)
- TIM domestic lines: 25.3 million (5.7% higher than at 31.12.2001)
Rome, February 12, 2003 - The Board of Directors of TIM (Telecom Italia Group),
chaired by Carlo Buora, has today examined the preliminary results for the 2002
fiscal year, submitted by the Chief Executive Officer Marco De Benedetti. Said
results are still being audited by the external auditors.
The preliminary results of the TIM Group
Please note that consolidated results of the TIM Group include the income and
financial results of the former company Blu S.p.A. (merged into TIM S.p.A. by
incorporation last December) relative to the 4Q2002 only.
- Preliminary consolidated revenues of euro 10.9 billion represent a 6% growth
with respect to the preceding fiscal year. This growth would have reached 11.9%
if the effects of variations in exchange rates were eliminated.
- Gross operating profit (GOP) amounting to euro 5 billion, increased by 5.9%
compared to the same period in 2001 (+8.6% net of exchange rate effects). The
GOP/revenues ratio remains at 46.4% notwithstanding numerous companies are still
in a start-up phase (GOP/revenues ratio in 2001 stood at 46.4%).
- Operating income amounting to euro 3.4 billion has grown by 7.1% compared to
2001 and stands at 30.9% in proportion to revenues (30.6% in 2001).
- Net borrowings stand at euro 1.9 billion after capital investments for euro
1.7 billion and the distribution in 2002 of dividends for euro 3.6 billion.
- The number of TIM Group mobile lines amounts to about 39.1 million, 12.2%
higher than the figure recorded at the end of 2001.
The preliminary results of TIM S.p.A.
Please note that the results posted in the financial statements of TIM S.p.A.
for the fiscal year 2002 will, in compliance with legal requirements, include
the income and financial results for the entire fiscal year 2002 of the former
company Blu S.p.A. In order to provide a meaningful statement on the preliminary
results for the fiscal year 2002, the results net of former Blu will also be
provided in order to make the Company's performance comparable with the results
achieved in the previous fiscal year. The preliminary results of the fiscal year
2002 confirm the growth levels recorded during the year in question.
In particular:
- Preliminary revenues, amount to euro 9 billion. The preliminary revenues of
TIM alone, net of the effects of the merger with Blu following the latter's
incorporation, stand at euro 8.9 billion, 6.7% higher than the preceding fiscal
year.
- Gross operating profit (GOP) amounts to euro 4.4 billion. The Gross operating
profit for TIM alone, net of the effect of Blu's incorporation, is euro 4.5
billion, rising by 7.2% and returning GOP/revenues ratio of 50.8% (50.6% in the
preceding fiscal year).
- Operating income stands at euro 3.2 billion. The operating income of TIM
alone, net of the effect of Blu's incorporation, is euro 3.3 billion,
representing a 2.8% increase with respect to 2001.
- TIM, with about 25.3 million lines as of 31 December 2002 (+5.7% with respect
to 31 December 2001), has confirmed its position as domestic market leader.
Change to the 2003 Corporate Calendar
The final financial statements of TIM SpA and the final consolidated financial
statements of the TIM Group for 2002 will be submitted for approval to the Board
of Directors of the Company on March 10, 2003 instead of March 6, 2003, as
communicated in the previous 2003 Corporate Calendar of Events. Consequently the
Shareholders' Meeting convened to approve the financial statements for the 2002
fiscal year will be called for April 14, at first call and April 15, 2003 at
second call, instead of April 11 and 12, 2003 respectively as previously
communicated.
Procedure for the disclosure of price-sensitive information to the market
The Board of Directors, implementing the framework of Corporate Governance
rules, has approved the "Procedure for disclosing price-sensitive information to
the market". The document lays down the arrangements for the disclosure to the
market of such type of information, indicates the Functions and Structures
involved in the procedure and also states the procedure to be followed in the
event of rumours or requests for information on behalf of bodies responsible for
regulating and running the market. The procedure, moreover, regulates the
operations to be undertaken when the Company convenes meetings with the
financial community and the Press.
Communication & Media Relations: +39 06 3688 2023
TIM Press Office : +39 06 3688 2499
TIM Investor Relations: +39 06 3900 3798
Cautionary Statement for Purposes of the "Safe Harbor" Provision of
the United States Private Securities Litigation Reform Act of 1995.
The Private Securities Litigation reform Act of 1995 provides a "safe
harbor" for forward-looking statements. The Press Release included in
this Form 6-K contains certain forward looking statements and
forecasts reflecting management's current views with respect to
strategic objectives for the next three years (2003-2005). The ability
of the Telecom Italia Group to achieve the objectives is dependant on
many factors which are outside of management's control. Actual
results may differ materially from those forecasted or implied in the
forward-looking statements. Such forward-looking information involves
risks and uncertainties that could significantly affect expected
results and are based on certain key assumptions.
The following important factors could cause the Telecom Italia Group's
actual results to differ materially from those projected or implied in
any forward-looking statements:
- the continuing impact of increased competition in a liberalized
market, including competition from global and regional alliances formed
by other telecommunications operators in the core domestic fixed-line
and wireless markets of the Telecom Italia Group;
- the ability of the Telecom Italia Group to introduce new
services to stimulate increased usage of its fixed and wireless networks to
offset declines in its fixed-line business due to the continuing
impact of regulatory required price reductions, market share
loss and pricing pressures generally;
- the ability of the Telecom Italia Group to achieve cost-
reduction targets in the time frame established or to continue
the process of rationalizing its non-core assets;
- the impact of regulatory decisions and changes in the
regulatory environment;
- the impact of the slowdown in Latin American economies and the
slow recovery of economies generally on the international
business of the Telecom Italia Group focused on Latin America
and on its foreign investments and capital expenditures;
- the continuing impact of rapid changes in technologies;
- the impact of political and economic developments in Italy and
other countries in which the Telecom Italia Group operates;
- the impact of fluctuations in currency exchange and interest
rates;
- Telecom Italia's ability to continue the implementation of its
2002-2004 Industrial Plan, including the rationalization of its
corporate structure and the disposition of Telecom Italia's
interests in various companies;
- the ability of the Telecom Italia Group to successfully achieve
its debt reduction targets;
- Telecom Italia's ability to successfully roll out its UMTS
networks and services and to realize the benefits of its
investment in UMTS licenses and related capital expenditures;
- SEAT's ability to successfully implement its internet strategy;
- the ability of the Telecom Italia Group to achieve the expected
return on the significant investments and capital expenditures
it has made in Latin America and in Europe;
- the amount and timing of any future impairment charges for
Telecom Italia's licences, goodwill or other assets; and
- the impact of litigation or decreased mobile communications
usage arising from actual or perceived health risks or other
problems relating to mobile handsets or transmission masts.
The foregoing factors should not be construed as exhaustive. Due to
such uncertainties and risks, readers are cautioned not to place undue
reliance on such forward-looking statements, which speak only as of
the date hereof. Accordingly, there can be no assurance that the group
will achieve its forecasted objectives.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: February 14, 2003
TELECOM ITALIA S.p.A.
BY: /s/ Carlo De Gennaro
---------------------------
Carlo De Gennaro
Company Manager