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 MARCH 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
Board adopts 2002 draft accounts
Operating profitability enhanced compared with 2001
2002 - 2004 Plan targets bettered
Efficiency savings of 1.6 billion euros
Over 4.8 billion euros in gains from disposals (5.2 billion at year-end 2001)
Seat equity stake written down: directories business no longer strategic
Debt reduced to 18.1 billion euros
Debt due beyond one year up from 64% at year-end 2001 to 75% at year-end 2002
Distribution of reserves for dividend payout, in line with previous year,
excluding that already distributed in December 2002
TELECOM ITALIA GROUP
- REVENUES: 30,400 MILLION EUROS, (-1.4% COMPARED WITH 2001)
+3.8% EXCLUDING EXCHANGE RATES AND CHANGES TO THE CONSOLIDATION AREA
- GROSS OPERATING RESULT: 13,964 MILLION EUROS, (+2.5% COMPARED WITH 2001)
+4.9% EXCLUDING EXCHANGE RATES AND CHANGES TO THE CONSOLIDATION AREA
- GROSS OPERATING RESULT/REVENUES RATIO: 45.9%
(44.2% IN 2001)
- OPERATING INCOME: 7,381 MILLION EUROS
(+10.6% COMPARED WITH 2001)
+9.9% EXCLUDING EXCHANGE RATES AND CHANGES TO THE CONSOLIDATION AREA
- OPERATING INCOME/REVENUES RATIO: 24.3%
(21.7% IN 2001)
- RESULT BEFORE EXTRAORDINARY ITEMS AND TAX: 5,218 MILLION EUROS
(2,719 MILLION EURO IN 2001)
- BALANCE OF EXTRAORDINARY INCOME AND CHARGES -5,637 MILLION EUROS
(-3,452 MILLION IN 2001)
- CONSOLIDATED NET RESULT: -322 MILLION EUROS
(-2,068 MILLION EUROS IN 2001),
THOUGH A 297 MILLION EURO PROFIT PRIOR TO MINORITIES
- DEBT: 18,118 MILLION EUROS
(-3,824 MILLION EUROS COMPARED WITH YEAR-END 2001)
- FREE CASH FLOW: 8,610 MILLION EUROS
(+2,620 MILLION EUROS COMPARED WITH 2001)
TELECOM ITALIA SPA
- REVENUES: 17,055 MILLION EUROS, DOWN (-1.5% COMPARED WITH 2001)
AS A RESULT OF PRICE REDUCTIONS
- GROSS OPERATING RESULT/REVENUES RATIO: 44.3%
(43.7% IN 2001)
- OPERATING INCOME: 4,045 MILLION EUROS
(+1.6% COMPARED WITH 2001)
- OPERATING INCOME/REVENUES RATIO: 23.7%
(23% IN 2001)
- RESULT BEFORE EXTRAORDINARY ITEMS AND TAX: 4,422 MILLION EUROS
(+22.6% COMPARED WITH 2001)
- NET RESULT: -1,645 MILLION EUROS
(151 MILLION EUROS IN 2001)
- DEBT: 15,128 MILLION EUROS
(-1,785 MILLION EUROS COMPARED WITH YEAR-END 2001)
Milan, March 12, 2003 - At yesterday's Meeting, the Board of Directors chaired
by Marco Tronchetti Provera adopted the 2002 draft accounts.
The Telecom Italia Group in 2002
The 2002 financial year closed with the 2002-2004 Business Plan targets met and
in many cases bettered. Efficiency savings on cash cost (operating costs +
investments) of 1,631 million euros were achieved, equivalent to 80% of the
three-year 2 billion euro target set. Disposals worth 4,771 million euros were
completed, which was sufficient to improve upon the disposals plan targets
established in November 2001; the total figure now stands at 5.2 billion euros.
The initial plan target, for September 2003, was set at 5 billion euros. The
results achieved through efficiency gains and the disposals plan have strongly
impacted Group debt. At year-end 2002 debt was down to 18.1 billion euros, a
figure that improved upon the 18.3 billion euro Plan target.
Profitability also posted a major improvement in 2002. The gross operating
result/revenues ratio was up from 44.2% in 2001 to 45.9%, and the operating
income/revenues ratio rose from 21.7% in 2001 to 24.3%.
The Group's corporate structure has also been streamlined: the number of
companies has been reduced from 714 to 416.
On 12 December 2002 the Telecom Italia Shareholders' Meeting resolved to
reclassify and distribute reserves up to a maximum of 1,000 million euros,
corresponding to a rate of 0.1357 euros per ordinary and savings share. The sum
of 987 million euros was paid out on 19 December 2002.
TELECOM ITALIA GROUP
During the course of 2002 the 9Telecom Group, Telespazio Group and the companies
of Sogei S.p.A., Consiel S.p.A., Datahouse S.p.A., Emsa S.p.A., Immsi S.p.A. and
Telimm S.p.A. all exited the consolidation area. Over the same period, the
Webegg Group and Epiclink S.p.A., Netsei S.p.A. and Blu S.p.a. companies were
consolidated.
Group revenues amounted to 30,400 million euros, down by 1.4% on the preceding
year (30,818 million in 2001). Organic growth amounted to 3.8% excluding
exchange rate differences (-763 million euros) and changes to the area of
consolidation (-755 million euros) . The Mobile Business Unit was the main
engine of revenue growth. The gross operating result amounted to 13,964 million
euros (an increase of 2.5% compared with 2001), a rise of 4.9% without taking
into account exchange rates (-186 million euros) and alterations to the
consolidation area (-120 million euros). The gross operating result was
equivalent to 45.9% of revenues (44.2% in 2001). In 2002 the gross operating
result was impacted by reduced consumption of materials and external services (-
3.7% compared with 2001) and lower labour costs (-2.5% compared with 2001).
Operating income amounted to 7,381 million euros, a 707 million euro improvement
(+10.6% compared with 2001, +9.9 in organic growth terms) achieved through
higher revenues, which rose from 21.7% in 2001 to 24.3% in 2002. The improvement
reflects both a better gross operating result and lower write-downs. In
particular write-downs for goodwill fell by 178 million euros, from 1,022
million euros in 2001 to 844 million euros in 2002, mainly as a result of write-
downs undertaken in 2001.
The result before extraordinary items and tax was 5,218 million euros (2,719
million euros in 2001).
This was offset by the balance of extraordinary income and charges, which came
to - 5,637 million euros (-3,452 million euros in 2001) and included:
- capital gains of 2,413 million euros from the disposal of equity
interests (264 million euros in 2001) following the sale of AUNA, Bouygues
Decaux Telecom, Mobilkom Austria, Lottomatica, Telemaco Immobiliare, Telespazio
and the Tiglio project;
- write-downs for goodwill and the put/call pledge on SEAT PG shares worth
an aggregate of 3,486 million euros. This item was written down by adjustment to
its market value (on the basis of the average ordinary share listing over the
second half of 2002), in consideration of the fact that the Group no longer
considers its Directories business to be of a strategic nature. Provisions of
569 million euros were made in 2001 to cover the put/call pledge on SEAT PG
shares;
- write-downs and goodwill on equity interests of 2,751 million euros
(2,984 million euros in 2001), principally regarding Aria-Is TIM Turkey, Netco
Redes, Corporacion Digitel and Blu;
- miscellaneous extraordinary charges of 1,813 million euros (732 million
euros in 2001), inclusive of provisions in 2002 associated with disposal of the
equity stake in the 9Telecom Group, the capital loss on the disposal of shares
in Telekom Austria AG, charges sustained as a result of extraordinary operations
regarding equity interests, charges sustained for provisions regarding
redundancies and personnel mobility, and allocations to reserves.
The pre-tax result corresponded to a 419 million euro loss, which was a 314
million euro improvement compared with the preceding year. This improvement may
be ascribed to significant growth in operating income (+707 million euros
compared with 2001) and an improved balance of long-term investment income and
charges and equity interests (+1,792 million euros compared with 2001).
The consolidated net result for 2002 was a 322 million euro loss (against a
profit of 297 million euros prior to minority interests). This compares with the
2001 loss of 2,068 million euros (a 1,658 million euro loss prior to
minorities). Investments amounted to an aggregate of 6,919 million euros (11,257
million euros in 2001). The figure is sub-divided between 4,842 million euros of
capital expenditure and 1,708 million euros of long-term investments, plus a
further 369 million euros in goodwill.
Free cash flow stood at 8,610 million euros, following an increase of 2,620
million euros; this item amounted to 28.3% of revenues (19.4% for 2001).
Net financial borrowings equal to 18,118 million euros were down by 3,824
million euros compared with year-end 2001 (21,942 million euros) after pay-out
of dividends and the distribution of reserves totalling 4,945 million euros
substantially balanced by disposals undertaken in 2002 worth 4,771 million euros
in aggregate. Stakes were disposed of in AUNA (1,998 million euros), Bouygues
Telecom (750 million euros), Mobilkom Austria (756 million euros), Lottomatica
(212 million euros), Sogei (176 million euros), Telemaco Immobiliare (192
million euros), IMMSI (69 million euros), Tiglio (328 million euros), Telekom
Austria (559 million euros), Telespazio (239 million euros), 9Telecom (-529
million euros) and sundry others (21 million euros). The structure of debt was
also improved: debt maturing beyond one year rose from 64% of the year-end 2001
total to 75% at year-end 2002.
Group headcount at year-end 2002 was 101,713, a 8,243 fall (109,956 in 2001). Of
this number, 2,883 left through changes to the consolidation area and 5,360 as a
result of turnover-related personnel number reductions.
TELECOM ITALIA SPA
Telecom Italia S.p.A. revenues in 2002 amounted to 17,055 million euros, a
slight reduction compared with the preceding year (17,309 million euros). This
drop may be ascribed essentially to price cuts brought in by regulatory policy.
The gross operating result of 7,549 million euros was 22 million euros lower
than the result for 2001 financial year (7,571 million euros), and corresponded
to 44.3% of revenues (43.7% in 2001).
Operating income equal to 4,045 million euros registered a 62 million euro
increase compared with the 2001 financial year (3,983 million euros), and was
equivalent to 23.7% of revenues (23% in 2001).
The result before extraordinary items and tax was 4,422 million euros (3,606
million euros in 2001), a 22.6% increase compared with the preceding financial
year.
The net result was a 1,645 million euro loss. The company registered a profit of
151 million euros in 2001. This year's performance may principally be ascribed
to a worse balance of extraordinary income and charges, corresponding to -6,093
million euros (-2,893 million euros in 2001), which was partially offset by
improved income from operations (+62 million euros compared with 2001), a better
balance of long-term equity investment income and charges (+754 million euros
compared with 2001) and lower taxes on income (+588 million euros compared with
2001). The dividend policy pursued the goal of ensuring a pay-out to
shareholders to match the dividend payout distributed for the 2001 financial
year. Reserves worth 987 million euros were distributed in December 2002
(corresponding to a dividend payout of 0.1357 euro per share); the remaining
portion shall be addressed in a resolution to be put before the Shareholders'
Meeting that convenes to adopt the 2002 financial statements equal to 0.1768
euro per ordinary share and 0.1878 per savings share, through withdrawal of
reserves from income and capital.
Net financial borrowings, equal to 15,128 million euros, were brought down by
1,785 million euros compared with year-end 2001 (16,913 million euros). The
improvement over 2001 was generated by money supply from operations (7,845
million euros), which more than covered commitments on investment (2,322 million
euros), pay-out of dividends for the 2001 financial year, and a distribution of
profit and profit reserves amounting to an aggregate total of 3,293 million
euros.
EVENTS OCCURRING AFTER 31 DECEMBER 2002
- Renewal of first 2001 securitization tranche
On 22 January the TI Securitisation Vehicle company renewed the first 100
million tranche of Asset Backed shares issued on 29 January 2001. This
transaction falls under the Telecom Italia telephone bill securitization plan.
- Disposal of TI logistics company arm
On 27 January Telecom Italia announced a deal with TNT Logistics Italia whereby
TNT takes over the stocking and distribution of fixed-line telephony products
for customers and Telecom Italia Network assistance and installation. Among
other factors, the deal includes the transfer to TNT Logistics of a portion of
the Telecom Italia company comprising 6 central warehouses, 100 outlying
warehouses and over 4.5 million pieces of telephone sets and telephone
installation articles annually. Devised to promote a company focus on core
business, the agreement became operational on 5 March 2003, upon receipt of
clearance from the Italian Competition Authority and completion of union
consultation procedures.
- Acquisition of equity in Consodata
On 12 February Seat Pagine Gialle acquired 1,108,695 ordinary shares in French
subsidiary Consodata S.A.- quoted on the Paris Nouveau Marche stock exchange -
after the founding shareholders' exercised their option to sell, which was
extended to them under an agreement made originally by the preceding Seat PG
management on 31 July 2000. This transaction, undertaken at an agreed
consideration of 44 euros per share - making an aggregate of approximately 48.8
million euros - has enabled Seat PG to acquire a further 8.17% of the company
share capital and voting rights, thereby raising its stake in Consodata S.A. to
98.60%.
- Disposal of Telekom Srbija
On 28 December 2002 the Telecom Italia Group announced that it had struck a deal
for the sale to PTT Srbija of its 29% holding in Telekom Srbija. The deal was
finalized on 20 February 2003 and the operation is expected to be completed by
the end of June. PTT is to pay 195 million euros, of which 120 million in four
monthly instalments starting from February 2003, and the remainder to be settled
in six half-yearly instalments from January 2006. The shares disposed of shall
be deposited with an international bank until payment of the consideration is
complete.
- Telecom Italia - Hewlett-Packard deal
On 21 February Telecom Italia and Hewlett-Packard struck a five-year management
services and outsourcing deal worth a total of 225 million euros. Under the
agreement, HP is to supply asset management, help desk, maintenance and
administration operations regarding 90,000 Telecom Italia workstations, drawing
upon the skills of around 600 IT Telecom specialists who will be transferred to
a new HP entity specialized in these services. For its part, IT Telecom is to
house the systems and administer HP Italia's SAP environment operations. The
agreement will lead to a closer focus on core business and generate efficiency
gains through the realization of distributed environment management savings. The
deal becomes binding and operational once consultations have been completed with
the unions and a go-ahead has been received from the Italian Competition
Authority.
- Telecom Italia share buyback
Under the buyback plan authorized by the Ordinary Telecom Italia Shareholders'
Meeting of 7 November 2001, it should be noted that during the period between 1
January and 12 March 2003, 54,309,500 savings shares were acquired at an average
price of 5.24 euros per share, corresponding to an investment of 285 million
euros, plus 6,195,500 ordinary shares at an average price of 8 euros per share,
corresponding to a 50 million euro investment.
Communication and Media Relations
Corporate Press Office
+39.06.3688.2610
www.telecomitalia.it/press
Investor Relations
+39.06.3688.2381/3378
www.telecomitalia.it/investor_relations
BUSINESS UNIT RESULTS BREAKDOWN
DOMESTIC WIRELINE
Domestic Wireline, the Telecom Italia fixed-line network business unit, posted
much improved operating and economic figures in 2002 compared with the preceding
year.
Revenues amounted to 17,022 million euros, after registering a 0.9% decline
compared with 2001. This slight drop was significantly less than in 2001 (-1.4%
compared with 2000), and is a major achievement accomplished by effective
positioning on the telephony market, the core business for the Domestic Wireline
business unit, and significant growth in the broadband, innovative data services
and value added services markets. This reflected the deep penetration of flat-
rate voice offerings, which now apply to more than 5.2 million lines,
corresponding to a 24% penetration of DW's client base, a stabilization of the
traffic market share (+0.1% compared with 2001), and an expansion of broadband
offerings, which has pushed the market up to 850,000 access lines. Particularly
impressive growth was recorded in the innovative data services and Web services
market, which offset the fall registered in traditional data and leased line
services, where prices are regulated and a migration towards innovative
solutions is underway.
The gross operating result, equal to 7,965 million euros, was up by a healthy
2.8% compared with the preceding financial year. This was equivalent to 46.8% of
revenues, against 45.1% in 2001.
Operating income amounted to 4,700 million euros, a rise of 7.8% compared with
2001. Operating income corresponded to 27.6% of revenues in 2002, against 25.4%
for the preceding year.
In 2002 Domestic Wireline confirmed its major commitment to investment after
investing 2,462 million euros, equivalent to 14.5% of annual revenues.
MOBILE SERVICES
In 2002 TIM SpA consolidated its position as Italy's number one mobile telephony
company, and currently supplies 25.3 million lines (+5.7% compared with the
preceding year).
TIM Group revenues for 2002 were equal to 10,867 million euros, having
registered growth of 6.0% compared with the 2001 financial year (10,250 million
euros).
The gross operating result amounted to 5,039 million euros, after posting a 5.9%
rise compared with the 2001 financial year (4,760 million euros). The gross
operating result amounted to 46.4% of revenues.
Operating income was 3,358 million euros, up 7.1% compared with the 2001
financial year (3,136 million euros).
Consolidated net income for the TIM parent company amounted to 1,165 million
euros, after registering a 22.6% rise compared with the 2001 financial year (950
million euros).
TIM Group-supplied mobile lines increased by 12.2% to reach 39.1 million, a rise
of 12.2% compared with the 34.9 million year-end 2001 figure.
TIM S.p.A. revenues for the 2002 financial year reached 8,915 million euros
(9,022 million euros inclusive of former Blu S.p.A. company operations),
compared with 8,357 million euros for the 2001 financial year. This corresponds
to growth of 6.7%. Revenues from Value Added Services (VAS) amounted to 752
million, after posting an increase in excess of 41% compared with the 2001
financial year.
The gross operating result totalled 4,529 million euros (4,404 million euros
inclusive of former Blu S.p.A. company operations), corresponding to 7.2% growth
over 2001 (4,225 million euros). The gross operating result corresponded to
50.8% of revenues (50.6% in 2001).
Operating income amounted to 3,323 million euros (3,153 million euros inclusive
of former Blu S.p.A. company operations), after a 2.8% rise (3,231 million euros
in 2001).
LATIN AMERICA (CHILE, BOLIVIA)
Revenues amounted to 1,409 million euros. The 8.1% reduction compared with 2001
may essentially be ascribed to currency fluctuations, which had a negative
aggregate impact of 212 million euros. Stripping out this factor, consolidated
revenues grew by 5.7%.
The gross operating result, at 450 million euros, came down by 77 million euros
(-14.6%) compared with 2001. Of this sum, approximately 65 million euros may
principally be ascribed to exchange rate fluctuations. Not taking the variations
into account, the gross operating result fell by 2.3% compared with 2001.
Operating income, equal to 146 million euros, followed the same trend as the
gross operating result.
During 2002 the Telecom Italia Group sold off a portion of its equity stake in
Solpart Participacoes SA (indirectly in control of Brasil Telecom) for
US$47,000. As a result of this move the Solpart stake was reduced from 37.29% to
19%, which was necessary to remove the regulatory impediment that had been
preventing the TIM Group from rolling out its nationwide GSM service in Brazil.
INTERNET & MEDIA
In 2002 Seat PG, the Telecom Italia Group media business unit whose operations
span telephone publishing, the Internet and television, repositioned its core
business, consolidated its presence on its market of operates, and enhanced its
in-house sales structure.
The Seat Pagine Gialle Group registered aggregate revenues in 2002 equal to
1,991 million euros (+1.7% compared with year-end 2001), for a consolidated net
profit of 14 million euros. This compares with a 313 million euros loss reported
in 2001.
In a particularly harsh economic climate, management has concentrated on
rationalizing operations and containing costs. For the first time, all spheres
of activity generated a gross operating profit - with the exception of
Television, which nevertheless drastically reduced the losses it incurred.
The highest growth area was domestic Italian telephone publishing operations,
for which revenues grew by 3.7%, even after taking into account the incidence of
companies disposed of during 2002 and consequently leaving the consolidation
area.
The Group's headline results are 33.6% growth in gross operating profit to 593
million euros (equivalent to 29.8% of revenues) and operating income up by 31
million euros on 2001 to 232 million euros for 2002. These results have been
accomplished through the disposal of loss-making activities and through major
efficiency gains posted in particular in the Internet, Directories and Directory
Assistance sectors. Debt was brought down from 922 million euros in 2001 to 680
million euros at year-end 2002, thanks to strong operating cash flow and
implementation of rationalization moves.
INFORMATION TECHNOLOGY MARKET
The Information Technology for the Market Business Unit (Finsiel Group) was
established early in 2002 following a reorganization of operations undertaken by
splitting the preceding Information Technology Services Business Unit by
customer type. The BU has responsibility for Group IT operations oriented
towards external markets.
The results achieved in the 2002 financial year in comparison with the 2001
financial year results, which have been reclassified on equivalent terms. It
should be noted that Sogei was only consolidated for the first six months of
2002, and Consiel for the first eight months of 2002.
Revenues, equal to 912 million euros, recorded a slight fall compared with 2001
(960 million euros). The gross operating result of 104 million euros was down
compared with 2001 (137 million euros). Operating income, equal to 61 million
euros, fell compared with 2001 (100 million euros).
In 2002 Finsiel Group offerings were rationalized through a refocus on vertical
markets (government, finance and enterprise).
INFORMATION TECHNOLOGY GROUP
The Information Technology for the Group operating unit (IT Telecom S.p.A.) was
established early in 2002 following a reorganization of operations undertaken by
splitting the preceding Information Technology Services Business Unit by
customer type. The BU has responsibility for Group IT operations targeted at the
Telecom Italia Group. It also encompasses the operations undertaken by the TILab
Group, a unit with the brief to identify and manage innovative ventures and open
up new business opportunities for Group companies and the external market.
The results achieved in the 2002 financial year in comparison with the 2001
financial year results, which have been reclassified on equivalent terms. During
2002 the companies of Netsiel, Saritel, Sodalia and Telesoft were merged with
and incorporated into IT Telecom S.p.A. as part of a broader reorganization of
Telecom Group holdings.
Revenues, corresponding to 1,215 million euros, recorded growth compared with
2001 (1,198 million euros). The gross operating result of 140 million euros was
down compared with 2001 (188 million euros). Operating income, corresponding to
21 million euros, was pegged back by price cuts to below the 2001 operating
profit of 22 million euros).
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 certain future events, including
preliminary results for the full year ended December 31, 2002, which are
currently beeing reviewed and audited by Reconta Ernst & Young, Telecom Italia's
outside auditors. The ability of the Telecom Italia Group to achieve its
forecasted results 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 results.
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: March 12, 2003
TELECOM ITALIA S.p.A.
BY: /s/ Carlo De Gennaro
---------------------------
Carlo De Gennaro
Company Manager