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  "docSlug": "5cd25d5edacd",
  "documentTitle": "Telecom Italia SpA (TIM) (TIT.MI)",
  "authorId": "02_Elliott_Management",
  "authorName": "Elliott",
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  "presentationDate": "2018-04-05 00:00:00",
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  "pageNumber": 36,
  "pageCount": 37,
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  "slideType": "valuation_table",
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  "nDataPoints": 18,
  "notes": "The slide uses a valuation bridge approach to demonstrate how deleveraging unlocks shareholder value through dividends.",
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      "text": "We estimate the Company will have a dividend coverage (FCF/Dividend) of 1.4x, in line with peers, therefore being able to distribute €1.2bn of dividend in 2019",
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      "kind": "list",
      "text": "We estimate the Company will have a dividend coverage (FCF/Dividend) of 1.4x, in line with peers, therefore being able to distribute €1.2bn of dividend in 2019",
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      "text": "We estimated a preliminary ServiceCo pro-forma Free Cash Flow: 2019 EBITDA of €5bn, net of €2bn NetCo and Sparkle estimated EBITDA; 2019 Capex of €2bn; 2018 estimated PF Net Debt of €12bn, assuming refinancing at interest rate of 3.5%",
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      "kind": "list",
      "text": "We derive a preliminary Free Cash Flow for ServiceCo in 2019 of €1.7bn",
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      "text": "dividend yield: 6.4%",
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      "kind": "paragraph",
      "text": "Following the deleverage TIM would be positioned to distribute a stable dividend again to ordinary shareholders",
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      "kind": "source-note",
      "text": "Source: Bloomberg as of 05-Apr-2018. PF share price excludes potential upside from shares conversion, includes upside from separation. In addition to upside from separation.",
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      "text": "Peers Dividend Yield 5.6%; Assumed Premium 15.0%; Dividend Yield 6.4%; ServiceCo Est. FCF €1.7bn; Peers Dividend Coverage 1.4x; Imp. Dividend €1.2bn; Implied Equity Value €19bn; PF Net Debt €12bn; PF EV €31bn; EV Post-separation €24bn; Add. Value €7bn",
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      "kind": "title",
      "text": "...Delevering Will Allow TIM to Pay a Dividend",
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      "evidence": "Slides 23-37 propose Elliott's plan for a stronger company, including a new board, separation of NetCo, and unlocking hidden value.",
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