Leading positions in the fixed-line and mobile markets in Italy. Good network position after recent investments in NGN and 4G, with nearly 100% 4G coverage and NGN coverage of 70% in the first half of 2017. High domestic EBITDA margins of more than 42%, and solid execution of cost efficiencies in Italy and Brazil. Aggressive competition in the Italian wireless market, notably at the lower end of the market. Difficult market and economic conditions in Brazil. Challenging economic and regulatory environments in Italy. Significant S&P Global Ratings-adjusted leverage between 3.0x-3.5x in 2017-2018. Limited but growing free operating cash flows (FOCF) of more than €1.5 billion in 2018. Financial policy aimed at further reduction in leverage and limited dividend payments. The
