Poste Italiane

Annual Report • Apr 24, 2024

Annual Report 2023

1

Poste Italiane Group Report on Operations at 31 December 2023

R OR O O RA O

REPORT ON OPERATIONS AT 31 DECEMBER 2023

Annual Report 2023

AT 31 DECEMBER 2023

R OR O O RA O A 31 D C MB R 2023 2
1 RODUC O 3
A M FROM H CHA RWOMA A D H CH F X CU V OFF C R 3
R A O OF H GRA D R OR 9
2 H GHL GH 12
2 1 2023 OU COM OF H VALU CR A O ROC A O AL A 12
2 2 M AC G RA D BY O AL A 15
2 3 CR A G HAR D VALU O ACH V H DGs 20
3 OU LOOK 22
4 BU MOD L24
4 1 O AL A ' OW R H A D ORGA A O AL RUC UR 24
4 2 O AL A ' COR ORA GOV R A C 29
4 3 O AL A GROU A D BU MOD L 33
4 4 GROU RUC UR 41
4 5 OM CHA L A ROACH A D GROU O RA G GM 50
5 RA GY101
5 1 GRA G U A AB L Y W H O AL A ' RA GY 101
5 2 O AL A ' U A AB L Y RA GY 103
5 3 O AL A ' U A AB L Y A H 119
6 R K A D O OR U 124
6 1 O AL A ' GRA D R AL CO ROL A D R K MA AG M Y	M 124
6 2 R K A OC A D W H MA R AL O C A D MA AG M M HOD 130
6 3 O AL A ' COMM M O MA AG G HUMA R GH R K 136
6 4 MA AG G CL MA CHA G R LA D R K A D O OR U 141
6 5 MA AG G M RG G R K A D H R LA D O OR U 150
7 CR A O OF VALU 170
7 1 RFORMA C OF O AL A HAR 170
7 2 M AC FROM O GO G CO FL C 172
7 3 GROU O RA G R UL 173
7 4 D G AL A D H RD- AR Y WORK H GROU ' OM CHA L RA GY 213
7 5 GROU CA AL MA AG M FRAM WORK 218
7 6 GROU F A C AL O O A D CA H FLOW 220
7 7 RFORMA C OF O AL A A A D R OR O O RA O OF BA CO O A RFC. 227
7 8 H G VALU 241
7 9 GR Y A D RA AR CY 241
7 10 O L D V LO M 262
7 11 D V R Y A D CLU O 305
7 12 CR A G VALU FOR H COU RY 324
7 13 GR RA O 347
7 14 CU OM R X R C 365
7 15 OVA O 383
7 16 U A ABL F A C 405

8 RO O D HAR HOLD R R OLU O A D O H R FORMA O 471 8 1 RO O D R OLU O 471 8 2 O H R FORMA O 471 9 CO OL DA D O -F A C AL A M 485 9 1 R OR G A DARD A D OL C 485 9 2 H URO A AXO OMY R GULA O 487 9 3 ABL OF CO GR - A DARD 512 10 GLO ARY537 O AL A ' F A C AL A M A 31 D C MB R 2023 545 1 RODUC O 547 2 BA OF R ARA O A D G F CA ACCOU G OL C 548 3 MA R AL V DUR G H Y AR 598 4 O AL A GROU 601 5 O AL A A - F A C AL A M A 31 D C MB R 2023 686 6 R K MA AG M 760 7 FA R VALU OF F A C AL RUM 810 8 H DG G RA AC O 818 9 ROC D G D G A D R C AL R LA O W H H AU HOR 824 10 MA R AL O -R CURR G V A D/OR RA AC O 833 11 XC O AL A D/OR U U UAL RA AC O 833 12 MA R AL V AF R H D OF H R OR G R OD 833 13 ADD O AL FORMA O 834 14 BA CO O A RFC ARA R OR FOR H Y AR D D 31 D C MB R 2023857	7 17 D CA OR ABL 417
	R OR A D A A O 977

1. INTRODUCTION

STATEMENT FROM THE CHAIRWOMAN AND THE CHIEF EXECUTIVE OFFICER

Shareholders,

on behalf of the entire Board of Directors, we are pleased to submit for your approval the oste taliane Group's sixth ntegrated Report

At the General hareholders' Meeting held on 8 May 2023, the Board of Directors of oste taliane was renewed for the three-year period 2023-2025 ince taking office, the extremely high level of Group solidity achieved over the years was noted here is a strong sense of responsibility to steering the Company correctly towards an even more prosperous, and at the same time, sustainable future for all people, customers, suppliers, the ublic Administration and citizens, for the community and the country's economic system

We are all aware that 2023 was also an extremely challenging year, characterised by converging crises After the radical changes triggered by the health emergency about four years ago, together with the first obvious effects of climate change, we have witnessed heightened geopolitical instability and an increase in inflation on a global scale, with the continuing Russian-Ukrainian war on urope's doorstep, compounded by growing tension in many parts of the Middle ast, which has unfortunately culminated in the conflict between srael and Hamas he global economic system is faced with geopolitical, climatic, economic and social consequences in an increasingly complex and everchanging scenario

Our Company has proved itself capable of continuing on its path of sustainable growth, by sticking to all its business guidelines, in a scenario that has clarified the need to have a strategy capable of innovating regularly, anticipating and guiding changes, which are now happening constantly, in order to guarantee sustainable economic and social value in the long-term oste taliane has had the foresight to identify the new needs of customers and citizens and to evolve to respond to them quickly and efficiently n response to the natural decline of traditional mail delivery services, due to the changing habits of citizens, the Group has been able to strengthen its presence in the broader delivery and logistics services by offering solutions in line with global players in the sector, thanks to a major internal restructuring, numerous partnerships and acquisitions, especially in the last three years, in the logistics and digital innovation sector Our undisputed leadership in the payments sector confirms the soundness of the choices we have made over the years, and the offering of new services, for home and all-round family and personal needs, through our extensive network of approximately 13,000 ost Offices that has enabled us to keep the entire infrastructure intact throughout the country

2023 was also a year of extraordinary results that exceeded market expectations and were in line with the positive trend of recent years, which translated into generated value for all Group stakeholders, the fruits of long-term work he path we have taken and the goals we have set internally have enabled us to capitalise on multiple opportunities capable of meeting the preferences of you stakeholders and shareholders he Group has worked with foresight and vision on the digital transformation of assets and internal organisational processes, strengthening its position in the area of logistics and digital payments without hampering, in particular, the objectives of decarbonisation and workplace health and safety and training, and has been able to seize all the potential, anticipating the market context in which the Group operates, understanding that the factors of change are conditions for making a real impact he Group has forged important international partnerships and completed a number of acquisitions, especially in the

last three years, without leaving behind any of the services for which the Company is traditionally recognised by its customers, i e postal savings and insurance/financial

n 2023, the oste taliane Group had an impact on the country's economy, in terms of Gross Domestic roduct (GD ), of €13 7 billion and, employed a total of roughly 197 thousand people, contributed around €2 7 billion to the income of the ublic Administration in terms of tax revenue Furthermore, it is estimated that oste taliane contributed directly and indirectly to the distribution of income to workers, totalling €7 3 billion his means that every euro spent by oste taliane for the purchase of goods and services generates an economic value for the country system of €3 in terms of production value

he results we achieved in the year 2023 are incorporated in a general context characterised by steady growth in our commitment to nvironmental, ocial & Governance issues hrough dozens of projects, the Group has committed significant efforts to all eight pillars of the ustainable Development trategy Briefly, with regard to ntegrity and ransparency, the new Fraud Management Centre was inaugurated, which monitors the security of transactions carried out in post offices and online 24 hours a day, and we have almost completed (80%) the ntegrated Anti-Fraud latform ( AF) n terms of eople Development, in 2023 alone, we provided 6 5 million hours of training and strengthened the Welfare platform; with respect to the areas of diversity and inclusion, the LGB Q+ nclusion olicy was rolled out in 2023 and formalised in early 2024, augmented by the Active arenting olicy from 2022 n support of the local area, multiple initiatives have been launched as part of postal, financial and digital education programmes he Customer xperience is the central focus of oste taliane's priorities n this regard, oste taliane is the first among large talian companies to achieve U O 22222 and U 11348 certifications for the nvestment Advisory ervice Model of financial advisors engaged in the role of personal financial planner oste taliane has embarked on a digitalisation process that has involved both the Group's offerings and its business processes, transforming the distribution model to one based on an omnichannel approach; we have launched the first full digital post office here are approximately 23 million daily interactions and over 6 million daily visitors on digital channels n addition, in support of the Green ransition, the Company almost completed the overhaul of the company vehicle fleet (to be completed by 2024) with electric and lowemission vehicles and continued on the virtuous path towards the complete energy efficiency of its buildings n particular, the first medium/large site was certified carbon neutral n addition, oste taliane customers can make use of both the unto oste network (consisting of more than 15,700 collection points) and the ost Office network for the delivery of parcels, as an alternative to home delivery As part of ustainable Finance, Group companies have launched funds that promote environmental and social features

Having embarked on the path of substantial transformation, which is not yet complete, it is clear, however, that our Company is profoundly different oste taliane is a reliable partner recognised nationally and internationally oste taliane today is a Group that has a mapped out a clear path of strategic development, built on solid foundations he direction it plans to take has been outlined and specified in the new "2024-2028 trategic lan" presented to the market on 20 March 2024

he new trategic lan targets the continuation of the transformation of the logistics sector through the evolution of the model into one based on an omnichannel approach, through a service offer aimed at covering all stages of the customer's logistics chain he focus will remain on offering products/services that keep pace with evolving market contexts and confirm the centrality of ostal avings in the oste taliane Group's offering n insurance, the Group aims to sustain net inflows in the Life segment and confirms its ambition to reduce under-insurance in the country by offering new products and expanding penetration in the rotection segment, including by placing policies on third-party networks through the integration of et nsurance, acquired in 2023 n addition, benefiting from the

growth of e-commerce and cashless payments, oste ay's business will evolve towards digital and innovative payment solutions and, at the same time, will be the integration layer on which to pursue the development of the telephony and electricity and gas offerings, to meet customers' everyday needs within the oste ay ecosystem he Group will continue to strengthen customer relations within the post office network, third-party networks and on digital properties by making omnichannel experiences easier During the course of 2023, the first financial functions were released in the Ufficio ostale app, simultaneously renamed as the oste taliane app, which will be gradually enriched with all the functionalities of the Banco osta and oste ay apps, with the aim of eventually replacing them and representing the single access point to the Group's "phygital" platform herefore, the objective of representing oste taliane as a platform company evolving towards a diversified, integrated and sustainable business model to offer talians an increasingly wider range of products/services is confirmed

he trategic lan hinges on the nvironmental, ocial & Governance ( G) principles and responds to the challenges of sustainability by setting targets up to 2030, in terms of reducing the emissions of the Group and of the supply chain, augmented by socio-economic elements such as developing people's skills and enhancing resources to foster change, promoting the values of diversity, equal opportunities and inclusion, and catering for the expectations of all generations, including young workers

he oste taliane Group's sustainable development strategy is embodied in the G lan, which has been renewed by taking into account the results of the materiality analysis and in synergy with the new " 2024-2028 trategic lan", and incorporates specific short-, medium- and long-term objectives, in order to make our path towards sustainable progress transparent and verifiable he updating of the sustainability strategy was influenced by three main drivers: the definition of the new Business lan; requests from rating agencies; and regulatory developments he G lan confirms its subdivision into eight pillars: ntegrity and ransparency, eople development, Diversity and nclusion, Creating value for the country, Green transition, Customer experience, nnovation and ustainable finance, whose objectives are updated annually according to a process of continuous alignment with strategic guidelines, results achieved and best practices, to increasingly integrate sustainability along the entire value chain

he need to deliver sustainable, long-term benefits to all our stakeholders has never been more important than now, when the Company is called upon to support our economy throughout the country and address the increasingly evident impacts of climate change At the heart of the strategy is the ambition to achieve carbon neutrality by 2030, in line with the goal of containing global warming to below 1 5 °C o support this commitment, projects have been outlined in four macro-areas: logistics, real estate, culture of sustainability and sustainable finance, with initiatives concerning both the direct emissions generated by our facilities - a further 10 properties will be made carbon neutral by 2028 - and the indirect emissions produced upstream and downstream by our suppliers and customers n fact, the "Green ndex", a carbon footprint calculation model for each stage of the entire supply chain, will be issued and certified according to the best industry standards n addition, we have set the goal of being within a maximum of 2 5 km from the customer throughout the country by 2028, thanks to the unto oste network, with obvious savings in air emissions

With regard to environmental sustainability, CO 28, held in December 2023 in Dubai, resonated greatly which recognised for the first time the need for a transition away from fossil fuels On this occasion, the U and its Member tates pledged more than half of the initial funding for the previously established loss and damage fund Overall, the U and its member countries are the world's largest provider of climate finance n addition, according to the 2023 World conomic Forum's Global Risk Report, weather-related events and disasters attributable to the effects of climate change are having a major social and economic impact he Report highlights how climate change adaptation initiatives and projects must be up to the task of coping with the intensity and speed of the ongoing

transformation and the global risks they are generating On the social and economic level, pressures on the cost of living reduce expectations and prospects because of major worries about inflation that are hard to quell, further increasing the sense of difficulty in dealing with even everyday issues With this "emotional climate" comes what, in 2024, is considered the most significant risk for the next two years, namely that of misinformation A risk that in an increasingly interconnected environment like the one we live in can amplify real risks or an inability to manage them properly op of the agenda are not only risks related to extreme weather events, greater intensity and the worsening of social and demographic polarisation, but the growing difficulty in governing the pace of technological progress, particularly with regard to cyber risks

oste taliane aims to support the sustainable development of the country and to be a guide for responsible growth and digital evolution through the definition and achievement of financial, operational and sustainability objectives understood in its broadest sense hanks to numerous initiatives and projects in line with an integrated vision, we can say that the Group is solid and sustainable, capable of providing the most innovative answers to seize the best opportunities even in a highly challenging and changing environment

he oste taliane Group plays a central role in the country's economy With a turnover of around €12 billion (up compared to 2022) and the highest number of employees among talian companies, it is confirmed in 2023 as the leading employer and the largest company in the logistics sector in taly, with a leading position also in the financial, insurance and payment services sectors he Group's recent entry into the energy sector further strengthens our presence in the region and our ability to meet citizens' needs even during a crisis n particular, the " oste nergia" offer stands out for its focus on environmental sustainability, promoting responsible consumption practices and offering electricity from 100% renewable sources produced in taly, with carbon dioxide emissions from gas released for consumption fully offset he Group's commitment to digital transformation continues with its support for citizens, businesses and the ublic Administration in the process of digitising the country oste taliane confirms its role as a strategic pillar by effectively and efficiently connecting the country he " olis roject, Houses for Digital Citizenship ervices", launched in 2022, is a practical example of how it is possible to promote the economic, social and territorial cohesion of the country and to overcome the digital divide in small towns and inland areas, around 7,000 municipalities with a population of less than 15,000 inhabitants, by becoming home to the digital services of the ublic Administration he ambitious project envisages total investments of around €1 2 billion to be implemented by 31 December 2026 and the allocation by the Ministry of nterprise and Made in taly of total contribution of €800 million n more than one thousand post offices in municipalities with less than 15,000 inhabitants, work has been completed to ensure that citizens can access the main services of the ublic Administration, services, and civil registration and judicial certificates Finally, work was completed on 31 coworking spaces

Goals such as these are certainly the result of the effectiveness of the path taken towards the creation of shared value, with a view to achieving the ustainable Development Goals ( DGs) as defined by the United ations he business model adopted by oste taliane is constantly evolving and adapting to the needs dictated by the economic and social context and the demands of the company's stakeholders, while maintaining its values and principles he relationship with all stakeholders is increasingly central, and fostering dialogue with them allows us to maintain a solid relationship of trust, based on shared values such as transparency and inclusion, which are at the heart of our growth path towards a sustainable future his means we can count on the support we need to successfully manage the risks and opportunities that arise and achieve long-term sustainability oste has always been keen to promote initiatives aimed at listening to all of the Group's stakeholders A long-established formula, the Multistakeholder Forum, now in its seventh edition, represents a crucial opportunity for discussing and fully sharing

the key objectives of the Group's ustainability trategy, based on eight pillars Also in 2023, the event was attended by around 1,400 people, together with whom we assessed the significance of the sustainability impacts related to our business and defined the material issues for oste taliane, in line with the regulatory developments of the GR and C RD standards he priority issues for stakeholders and the Company so defined are analysed according to the dual materiality approach, which aims to identify the material issues that enable us to prioritise action aimed at creating value in the short, medium and long term n line with the strategy outlined in the new trategic lan to support the customer and the community, the results of the engagement process with the Group's main stakeholders showed an increased relevance of impacts related to the following issues: nnovation and digitisation of products, services and processes, rotection of human rights in the Company, upport for the socio-economic development of the territory and qual opportunities in career paths from an inside-out perspective; nnovation and digitisation of products, services and processes, Quality and Customer experience, taff training and development and Financial inclusion based on an outside-in approach

he oste taliane Group's business model confirmed its solidity in 2023 as well, despite a particularly complex and challenging scenario he actions and results achieved, reported in the ntegrated Report, describe the Group's concrete commitment and have been consistent with the process undertaken by the Company to generate valuable relationships with all its stakeholders

As we continue our organic path of growth, which combines innovation and human capital development in an inseparable pairing, our sense of responsibility is embodied by actions and initiatives to protect the community and the environment in which the Group operates n keeping with these values, we constantly maintain a focus on human advancement, through a social commitment aimed at realising practical projects n particular, in line with one of the material themes identified, we have invested heavily in the training of our people, focusing on the development of the skills also required by new businesses, health and safety in the workplace and respect for human rights, essential tools for a competitive advantage in the market But the strategy will be further developed, expanding the initiatives, including the creation of five campuses dedicated entirely to the training of our people

Our stakeholders have already been able to appreciate and benefit from the value created starting with "Deliver 2022" and continued with " ustain& nnovate lus 2024", presented to the market in 2018 and 2022 respectively, thanks to which it has been possible to structure the new "2024-2028 trategic lan" with a solid foundation, that is increasingly sustainable and accessible to all our citizens hanks to our commitment to guaranteeing access to our services throughout the country, combining proximity and digital innovation, our distinctive identity, we are committed to reducing emissions, to promoting new business models to accelerate our customers' green transition, to respecting human rights at all stages of our activities, and to the human and professional growth of our people based on valuing everyone's contribution, inclusion, motivation and respect Furthermore, the Group dedicates itself on a daily basis to the promotion of organic and widespread social inclusion initiatives, with the aim of creating a positive impact in the context in which it operates n particular, corporate volunteering represents an ethical choice of the Company and a concrete commitment for the community sustainable development, in line with the values and principles incorporated in the Code of thics and the ustainability olicies We have set ourselves the goal of doing more and more in this context

his awareness drives us to introduce increasingly more effective actions because we feel a responsibility to make a real difference

hrough a growing commitment to greater transparency to the market and to the solidity and concreteness of the business model built to create sustainable value in the long term, also in 2023, the Group confirmed or improved its ratings of excellence in the main G ratings used by the main market players n December 2023, oste taliane was ranked as the world's " ector Leader" for sustainability in the insurance sector according to the & Global

rating agency, subsequently being included in the 2024 edition of the & Global ustainability Yearbook, falling within the op 1% of the & Global G core 2023, and confirming its presence for the fifth time in a row in the Dow Jones ustainability ndex World and the more selective Dow Jones ustainability ndex urope n addition, the Group was not only reconfirmed as a leader in the fight against climate change by CD (formerly the Carbon Disclosure roject), placed for the third consecutive year in the "Leadership" bracket of the international rankings with an A- rating, but was also ranked by ustainalytics as a top G performer from a panel of more than 15,000 companies assessed globally, maintaining a Low G Risk Rating hese prestigious recognitions are followed by further confirmations in equally important indices, such as the Bloomberg Gender- quality ndex (G ), ntegrated Governance ndex ( G ), F 4GOOD, uronext M B G and quileap Global Gender quality in addition to several other indices of the uronext Group n addition, the Group also maintained its "AA" rating from M C , owing to the major progress it has made in the social sphere, improving its corporate sustainability performance and leadership in the sector

he Group achieved numerous recognitions in 2023, which the whole Company is extremely proud of because they are the result of the work put in by all oste taliane's people For the sake of brevity, 'll mention just a few

oste taliane has been awarded the prestigious latinum medal by coVadis, which assesses the sustainability of companies along the supply chain, further improving its position from last year's Gold medal by placing within the top 1% of companies assessed by the team of international experts he Group is committed on a daily basis to finding innovative and sustainable solutions for our talian and international partners, in line with our corporate objectives, and will continue to work to be an increasingly representative point of reference for the country in the G domain Finally, oste taliane obtained the U / dR 125:2022 certification (a certificate provided for in the ational Recovery and Resilience lan - RR ), due to its ability to ensure gender equality in the workplace nclusive organisation and respect for gender equality create shared social value and foster a higher level of engagement with corporate objectives, generating a competitive advantage for the entire Group he certification obtained actually represents another feather in the Company's cap, augmenting the other important recognitions already achieved by oste taliane in the area of inclusiveness, such as the qual alary certification, the Uni O 30415:2021 - Human resource management - Diversity and nclusion certification, in addition to the op mployers certification confirmed for the fifth consecutive year

We are fully satisfied with the results we have achieved; the high level of professionalism, determination and ambition which are our hallmark, has helped us take important steps along the path of development We will strive to ensure that our Company continues to be a reference point in the community in which we operate because trust and reputation are fundamental values on which to base a solid future for the benefit of all stakeholders

A heartfelt thank you, therefore, goes to all the people of the oste taliane Group for their constant support in pursuing all the common goals dynamically and with bundles of energy

Finally, we thank you hareholders in advance for the attention given to this document, which is inspired by the principle of maximum transparency towards all our stakeholders

PRESENTATION OF THE INTEGRATED REPORT

he ntegrated Report of the oste taliane Group this year has reached its sixth edition and aims to illustrate in an accurate, factual and transparent manner, all the activities, results achieved, their performance and services offered according to the systemic approach between financial and non-financial strategies in their respective overall vision

he ntegrated Report also illustrates how sustainability is increasingly integrated into the business model, providing a clear and comprehensive representation of the Company's financial, environmental, social and governance performance n fact, the deep integration of sustainability into the business, encapsulated in oste taliane's purpose is also evidenced by a set of annual and multi-annual targets traceable to the eight pillars of the strategy designed to provide stakeholders with maximum transparency on the Group's commitment in these areas and to report transparently on the progress achieved

hrough this approach, the Group aims to tell the story of its ability to generate and maintain value over time, both financially and non-financially, in the context and market in which it operates

With this in mind, the document is a useful tool for stakeholders to gain a comprehensive understanding of the processes the Group has put in place to support the country's growth and create shared value, describing what has been achieved while offering an overview of short-, medium- and long-term ambitions and goals

he social and environmental impacts generated by the Group place the process of integrating sustainability into the business model at the centre of the value creation process for the Company and all its stakeholders, with the aim of contributing to the achievement of the United ations ustainable Development Goals he path taken by the Group is underpinned by certain strategic and investment choices in the main forms of capital, such as financial, human, physical-structural, intellectual, social-relational and natural, i e assets which contribute to sustainable success of the Company, but which on the other hand are impacted by the activities of the Company itself For this reason, in continuity with previous years, the document includes an overview of the correlation between the Company's performance and the types of capital listed above, and for each of them the results achieved are illustrated in Chapter 2 "Highlights"

oste taliane, through numerous G projects, aims to lead the country's sustainability path, build an inclusive society and offer a greener future hrough this document, the Group aims to represent its green strategy, aimed at continuing its path of entry into the energy market, accelerating the energy transition process of the business n addition to proposing sustainable products and offers, entering the energy market gives oste taliane a further boost in engaging customers and guiding them towards environmentally aware behaviour

he ntegrated Report is prepared by taking into account a wide range of international standards and guidelines to which the Group also adheres on a voluntary basis n continuity with the preparation of the previous ntegrated Report and consistent with regulatory requirements, the 2023 ntegrated Report contains the section dedicated to the uropean nvironmental axonomy, found within Chapter 9 "Consolidated on-Financial tatements" o this end, the Group undertook a careful analysis of its activities and the regulatory framework issued by uropean institutions and developed a specific methodological approach aimed at providing adequate disclosure n line with the U Regulation n 852/2020 ( axonomy Regulation) and with the relevant regulatory evolutions that emerged during 2023, the oste taliane Group, taking into consideration its industrial and financial operations, has reported the percentages of urnover, Cap x and Op x and the share of investment/financing associated with eligible economic activities in relation to the six objectives provided by the U axonomy, and aligned in relation to the first two environmental objectives n addition, within Chapter 5 " trategy" is described the methodology adopted by the

Group for the materiality analysis, aligned in view of compliance with the forecasts related to the 2021 update of the GR standards for the inside-out perspective, taking into account the provisions of FRAG, contained in the new sustainability standards and in the Guideline on double materiality, although still in draft, for the outside-in perspective he adoption of the double materiality process to identify oste taliane's material issues allows the Group to conduct an analysis in anticipation of the Corporate ustainability Reporting Directive, scheduled for FY 2024

n continuity with previous years, the 2023 ntegrated Report contain the Consolidated on-Financial tatement, which is integrated into the Report on Operations in the Chapter 9 thereof he F was drawn up in accordance with the requirements of Articles 3 and 4 of Legislative Decree no 254/2016 and the "Global Reporting nitiative ustainability Reporting tandards" defined by the GR - Global Reporting nitiative (hereinafter "GR tandards") according to "in accordance" option Chapter 9 of the section "Reporting standards and criteria" includes a connecting table that indicates the information content required by the Decree and its positioning within the ntegrated Report, with the aim of making it easier to find all non-financial information n addition, such content is also noted, to make it easily identifiable, by this infographic:

he Group's sixth ntegrated Report was prepared by applying the ntegrated Reporting framework published by the nternational ntegrated Reporting Council ( RC) n addition, oste taliane has, as well, taken into account MA0F ¹ priorities in giving disclosure in terms of reporting within the 2023 Annual Reports and on-Financial tatements MA identifies climate change issues as a priority in the non-financial report for 2023 As confirmation of oste taliane's commitment to combating climate change, it should be noted that as of 2021 the Group has officially joined the supporters of the ask Force on Climate-related Financial Disclosure ( CFD) n order to broaden the Group's disclosure on the management of risks and opportunities related to climate change, this document illustrates how the Group's activities are managed according to the recommendations of the CFD, and also provides a table linking the ask Force on Climate-related Disclosure ( CFD) recommendations with the contents of the ntegrated Report n addition, oste taliane was among the 320 organisations to adhere as early adopters to the new set of recommendations published by the FD to support organisations in identifying, assessing, managing and disclosing relevant nature-related issues (biodiversity, waste and water management, climate change agents, etc ), consistent with global policy objectives and international sustainability reporting standards Finally, with the aim of reflecting potential future developments regarding climate change, oste taliane once again this year carried out a review of climate scenarios using as a reference the documents drawn up by the nternational nergy Agency ( A) and the ntergovernmental anel on Climate Change ( CC) and the main literature on the subject

n line with previous years, the indicators used for the preparation of the 2023 ntegrated Report were reclassified according to A B ( ustainability Accounting tandards Board) standards, with the aim of contributing to the development of a shared and universal framework for non-financial reporting n this sense, the indicators relating to "material G metrics" found in the latest version, from eptember 2020, of the document " owards Common Metrics and Consistent Reporting of ustainable Value Creation" presented to the World conomic Forum in January of the same year, have been reported again this year By continuously updating its non-financial reporting methodology, the oste taliane Group demonstrates its commitment to the demands of the financial market, which is increasingly focused on assessing companies according to environmental, social and governance criteria

¹ MA document on uropean common supervisory priorities for 2023 " uropean common enforcement priorities for 2023 annual financial reports", published on 25 October 2023

he document also contains a table linking the objectives pursued by the Group, the GR tandards indicators and the DGs, which represents a useful tool to illustrate how the Company contributes to the achievement of the 17 United ations ustainable Development Goals and their 169 targets, also incorporating the latest guidelines of the most up-to-date version of the " DG Compass" document drawn up by GR , U Global Compact and WBC D (World Business Council for ustainable Development)

n addition to the ntegrated Report, the Annual Financial Report is composed of the following documents: the consolidated financial statements of the oste taliane Group, oste taliane's separate financial statements, including Bancoposta RFC's eparate Report, and the related attestations pursuant to art 154 bis paragraph 5 of Legislative Decree no 58/1998 and the reports of the Board of tatutory Auditors and the ndependent Auditors, referring to the financial year ended 31 December 2023, and the Report on Corporate Governance and Ownership tructure published on the Company's website, in the Governance section, which is to be considered an integral part and to which reference should be made for further details on the Corporate Governance structure

his Annual Report, which was approved by the Board of Directors of oste taliane pA on 19 March 2024, is made available to the public within the terms provided for by the regulations in force (i e , by 30 April 2024) on the following web page: https://www posteitaliane it/en/reports html#/

he following infographics are used in this document:

• to indicate, by means of a hyperlink, that it is possible to consult the definition of the content in the glossary in Chapter 10;
  • to indicate, by means of a hyperlink, that it is possible to go deeper into the topic dealt with in the relevant paragraph;
  • to indicate, by means of a hyperlink, that it is possible to return to the beginning of the chapter and the general index

2. HIGHLIGHTS

2023 OU COM OF H VALU CR A O ROC A O AL A M AC G RA D BY O AL A CR A G HAR D VALU O ACH V H DGs

2.1 2023 OUTCOME OF THE VALUE CREATION PROCESS AT POSTE ITALIANE

During 2023, the path of shared value creation undertaken by the oste taliane Group generated excellent results at system level, through the significant investments in the six forms of capital which underpin the Company: financial, human, physical-structural, intellectual, social-relational and natural, and in line with the United ations ustainable Development Goals framework

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

oste taliane is op mployer for the 5th consecutive year

ew edition of the Code of thics approved, which reaffirms and amplifies the fundamental principles that inspire the Group

resence on the Bloomberg Gender quality ndex confirmed for 5th consecutive year

Roughly 6 5 mln hours of training provided in 2023

rade union agreement to regulate Agile Work, extended until 31 12 2024

2023 performance bonus: +4% vs 2022 and extraordinary bonus for the year of €1,000 for Group employees

Record number of sign-ups for the Corporate Welfare programme with roughly 28 thousand sign-ups: X3 compared to 2022

oste taliane is among the winners in the A LA Foundation's Women's roject for its commitment to the prevention of osteoarthritis and osteoporosis, promoting the importance of women's health

January 2023: inaugural event of the olis roject - House of Digital ervices ( RR) to foster social and territorial cohesion and overcome the digital divide in small centres As of April 2023, services, some judicial certificates* and the ational Register of Resident opulation certificate services are available

Memorandum of understanding with the hird ector Forum on sustainability and volunteering projects: the online platform dedicated to the promotion of projects proposed by hird ector organisations is operational

oste taliane is among the top three companies in the " ntegrated Governance ndex ( G ) 2023" ranking for the integration of sustainability policies into corporate strategies

oste taliane on the podium of the "best communicators" according to Lundquist's "trust talia 2023" research

oste taliane confirms its leadership in sustainability by taking 1st place among the Blue Chip of the talian tock xchange in the M B® G GLOBAL COR index

oste taliane confirms its leadership in G policies by obtaining for the second year in a row the advanced category in Moody's Analytics' G overall score

oste taliane is the world's " ector leader" for sustainability in the insurance sector according to the & Global rating agency, confirming its position for the 5th consecutive year in the Dow Jones ustainability ndex World and urope and for the 4th year in the 2024 edition of & Global's ustainability Yearbook, falling into the " op 1%" rating bracket among companies in the insurance sector

oste taliane ranks 4th in the "Webranking urope 500" ranking of leading uropean listed companies for transparency and quality of digital communication

*Appeal for the establishment of the support administrator and the statement of assets of the administered and/or protected person

oste taliane confirms the "A-" rating issued by CD (former Carbon disclosure project) in the Climate change section

he oste taliane Group enters the energy sector, with a 100% green mass market offer accessible in omnichannel mode: reached over 500 thousand contracts since the launch of the service

Roughly 26,200 low-emission vehicles in the company fleet, of which roughly 5,800 electric

Full green delivery: zero-emission delivery in 35 city centres

Approximately 2,000 buildings involved in the mart Building project*, roughly 310 photovoltaic systems with an installed capacity of over 15,000 KWp

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* Automated and remote management of buildings to achieve energy efficiencies

MAIN RELATED TYPES OF CAPITAL

2.2 IMPACTS GENERATED BY POSTE ITALIANE

hrough its leadership in the logistics, financial, insurance and payment services sectors, oste taliane plays a key role in the creation of economic value both for the stakeholders directly impacted by its business activities and for the country as a whole

n particular, the activities carried out by oste taliane generate impacts on GD , employment income, employment and contributions to A mpacts can be distinguished into:

• Direct impacts: impacts generated by the operating activities carried out directly by oste taliane;
• Indirect impacts: impacts generated along the supply chain as a result of oste taliane's spending on goods and services (€3 8 billion in 2023) from talian suppliers;
• Induced impacts: impacts generated by consumer spending that is realised through the income earned by workers employed directly and indirectly by the Group

x 3

one euro spent by Poste Italiane for the purchase of goods and services generates an economic value for the country system of €3 in terms of production value

n 2023, the oste taliane Group had an impact on the country's economy, in terms of Gross Domestic roduct (GD ), of €13 7 billion and, employed a total of roughly 197 thousand people and contributed around €2 7 billion to the income of the ublic Administration in terms of tax revenue Furthermore, it is estimated that oste taliane contributed directly and indirectly to the distribution of income to workers, totalling €7 3 billion

oste taliane's creation of value is based on the contribution that the Group's individual people make through their daily work and commitment n fact, in 2023, each person at oste taliane contributed to the creation of economic impacts for the region amounting to €114 thousand of GD , €61 thousand of income for families, €22 thousand of tax contributions and the employment of 1 6 people

oste taliane's commitment to serving the country's economic system is not limited to 2023, but is embedded in a path of annual value creation n fact, from 2018, the oste taliane Group has generated overall impacts on the country of roughly €76 billion in Gross Domestic roduct (GD ), €44 billion in employment income, and €13 billion in tax revenue n addition, on average, the Group contributed to the creation of 187 thousand jobs between 2018 and 2023

Below are two focuses on the area of oste taliane's suppliers, respectively the impacts generated by talian suppliers in the individual erritorial Areas and the indirect contributions generated by talian M suppliers

Impacts generated in individual Territorial Areas in 2023

Considering the region of the registered office of suppliers, the indirect impacts generated by them in each erritorial Area in 2023 have been identified

he various areas examined generated GD values of between roughly €70 million and €1 4 billion his results in an employment level of no less than one 1,600 people and total employment income between €45 million and €590 million approximately

Impacts of Italian SME suppliers

Considering the parameters defined by the uropean Commission, the talian suppliers that are characterised as mall and Medium nterprises ( M s) and the indirect impacts attributable to them have been identified

n 2023, M s impacted the level of Gross Domestic roduct for a value of €1 3 billion, leading to the employment of 23,000 people and an income distribution of around €650 million Finally, €414 million has been generated in terms of tax revenue

The economic value generated and distributed by the Poste Italiane Group

oste taliane also provides an overview of the economic value generated and distributed by the Company to its stakeholders such as suppliers, employees, lenders, the community, the ublic Administration and shareholders his value represents the wealth produced by the Company and its impact on key stakeholder categories, in accordance with the requirements of GR tandards 201-1 reporting standard

n 2023, more than 84% of the wealth produced by the Company was distributed to its stakeholders n particular, employees and suppliers are among the stakeholder categories that benefit most from the wealth produced by the Company, accounting respectively for 48% and 32% of the total value distributed

The economic value created in 2023 amounts to over €12 billion, roughly 84% distributed to stakeholders

2.3 CREATING SHARED VALUE TO ACHIEVE THE SDGs

oste taliane is a fundamental part of the Country's economic, social and production fabric and is a unique entity in taly in terms of size, recognisability and widespread coverage he Company's activities therefore generate significant impacts throughout the territory, also with a view to achieving the ustainable Development Goals ( DGs)

he following illustration highlights the correlation between the results of oste taliane's business model and the "social needs" of the talian territory, identified through the analysis of the fifth edition of the DGs Report (2023) prepared by A he representation provides an overview of the Group's impact on the U DGs

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3. OUTLOOK

n the normalisation process that started after the shocks experienced in recent years, the global economy grew at a modest rate in 2023 reliminary 2023 estimates for taly also show a slight increase in GD (+0 7%) compared to 2022 After growth in the first months of 2023, driven by the manufacturing sector, which benefited from the fall in energy prices and the loosening of "bottlenecks" along the supply chains, the economy slowed down in the following months, leading to a decline in GD in the second quarter of 2023; this phase of weakness in talian economic activity, which extended to both manufacturing and services, continued in the third and fourth quarters

here was also a gradual decline in inflation during 2023 as a result of the more restrictive monetary policy stance and falling energy commodity prices; the decrease in inflation also extended to non-energy industrial goods and services

he end of 2023 and the beginning of 2024 saw an improvement in business and consumer confidence and, according to the most recent estimates, this trend will continue in 2024, together with a reduction in inflation, while GD is expected to grow at a modest rate of +0 7% in 2024 compared to 2023, broadly in line with that forecast for the other urozone countries in an economic scenario that continues to be dominated by a high level of uncertainty due to the prolonged geopolitical tensions and the risk of a further crisis in the Middle ast

Against this backdrop, the oste taliane Group posted a new record in 2023 with B coming in at €2 62 billion, hitting the upwardly revised guidance communicated to the financial community last ovember n addition to growth in the payment and financial services businesses in particular, careful control of costs contributed to this result he year was marked by the break-even of the Mail, arcels and Distribution trategic Business Unit ahead of expectations and by positive retail net inflows, driven by investments and the insurance segment, with the latter continuing to outperform the market

he solid financial performance and the increased visibility and sustainability of the liquidity and capital generation prompted the management to revise the dividend upwards compared to the target originally set: the proposed dividend for the year 2023 is €0 8 per share, up 23% compared to the previous year's figure ince the 2015 listing, a high and increasing overall remuneration of the Company's shareholders has been ensured, with performance exceeding the values recorded by the main index of the talian tock xchange

On 20 March 2024, the new 2024-2028 Business lan will be presented to the market, which targets the transformation of logistics and an evolution of the customer service business model n particular, the continuation of the Group's transformation path to become a complete logistics operator is confirmed, ensuring the financial sustainability of the Mail, arcels and Distribution segment

his strategy includes the integration of lurima, acquired in 2022, with the aim of growing in the healthcare and hospital logistics sector, the renewal of the partnership with Amazon for 5 years, the partnership with DHL, for the development of international business, and the establishment of MLK Fresh at the beginning of 2024, in partnership with a specialised industry operator, a joint venture operating in the express courier service for the home delivery of food products he Group will also be engaged in further strengthening ntegrated Logistics by offering services to cover all stages of the customer's logistics chain

he new service model aims to optimise customer coverage and management based on an omnichannel approach, directing advisors' efforts into "relational" rather than "transactional" activities, generating value for the Group

he focus will remain on offering products/services that keep pace with evolving market contexts and confirm the centrality of ostal avings in the oste taliane Group's offering n insurance, the Group aims to sustain net inflows in the Life segment and confirms its ambition to reduce under-insurance in the country by offering new products and expanding penetration in the rotection segment, including by placing policies on third-party networks through the integration of et nsurance, acquired in 2023

n addition, benefiting from the growth of e-commerce and cashless payments, oste ay's business will evolve towards digital and innovative payment solutions and, at the same time, will be the integration layer on which to pursue the development of the telephony and electricity and gas offerings, to meet customers' everyday needs within the ostepay ecosystem

he Group will continue to strengthen customer relations within the post office network, third-party networks and on digital properties by making omnichannel experiences easier t should be noted that in 2023 the first financial functions will be integrated into the Ufficio ostale app, at the same time renamed oste taliane app, which will be progressively enriched with all the functionalities of the Banco osta and oste ay apps, with the aim of eventually replacing them and representing the single access point to the Group's "phygital" platform herefore, the objective of representing oste taliane as a platform company evolving towards a diversified, integrated and sustainable business model to offer talians an increasingly wider range of products/services is confirmed

he Group will continue to rely on and value its people as the key to success for the implementation of the new strategic plan; to this end, constructive negotiations have already started for the renewal of the ational Collective Labour Agreement, which expires at the end of 2023

As part of the ational Recovery and Resilience lan, the Group will continue with the implementation of " olis", a strategic project to support the country's social cohesion, which involves approximately 7,000 municipalities with a population of less than 15 thousand inhabitants, in which the ost Office will be transformed into the "house of the public administration's digital services" ome 250 co-working spaces nationwide are also planned, as well as the implementation of numerous initiatives to support the country's energy transition

n the path of transition towards carbon neutrality by 2030, investments and strategic initiatives will continue, such as the renewal of the delivery fleet with low-emission vehicles, the installation of photovoltaic panels for energy supply, the modernisation of the fleet with low-CO2-emission vehicles, and enhancement of building efficiency; the replacement of current ostepay cards with cards made of eco-sustainable materials and with digital cards will also continue, as well as the development of specific offers aimed at enhancing customers' sustainable behaviour

4. BUSINESS MODEL

O AL A ' OW R H A D ORGA A O AL RUC UR

O AL A ' COR ORA GOV R A C

O AL A ' BU MOD L

GROU RUC UR

OM CHA L A ROACH A D GROU O RA G GM

4.1 POSTE ITALIANE'S OWNERSHIP AND ORGANISATIONAL STRUCTURE

4 1 1 O AL A ' OW R H

24 37% 63% oste taliane has issued shares listed on the Mercato elematico Azionario ( lectronic tock xchange - M A) organised and managed by Borsa taliana pA as of 27 October 2015 At 31 December 2023, the Company is 29 26% owned by the Ministry of the conomy and Finance (M F) and 35% owned by Cassa Depositi e restiti pA (CD ), also controlled by the M F he remaining shares are held by institutional and retail investors A total of 33 9%1F ² of the shares held by institutional investors of oste taliane pA belong to investors who apply G ( nvironment, ocial, Governance) criteria in their investment choices he share capital of oste taliane pA consists of 1,306,110,000 ordinary shares, of which 1,295,434,202 are outstanding at 31 December 2023

n execution of the authorisation to purchase treasury shares resolved by oste taliane's hareholders' Meeting of 8 May 2023, aimed at acquiring a supply of shares to service the Group's long-term incentive plans benefiting members of management (including the Chief xecutive Officer and General Manager), on 9 May 2023, the market was informed of the launch of a share buy-back programme under which, between 10 May 2023 and 31 May 2023, oste taliane purchased 3,500,000 treasury shares (equal to 0 268% of the share capital), at an average price of roughly €9 7 per share, for a total value of €33,984,897 83

Following the transaction, considering also the treasury shares in the portfolio deriving from previous buy-back transactions

and the delivery to the beneficiaries of the incentive plans, at 31 December 2023, oste taliane holds 10,675,798 treasury

On 25 January 2024, the Council of Ministers approved, in a preliminary examination, a measure regulating the sale of a portion of the stake held by the Ministry of conomy and Finance in oste taliane pA, so as to maintain a tate stake, even indirectly, ensuring public control

4 1 2 O AL A ' ORGA A O AL RUC UR

shares, equal to 0 817% of the share capital

n line with the strategic guidelines set out in the trategic lan, the Group's activities are divided into four trategic Business Units (also referred to as operating segments in oste taliane's financial statements): Mail, arcels and Distribution; Financial ervices; nsurance ervices and ayments and Mobile

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

MA L, ARC L A D D R BU O

n addition to its mail, parcel and logistics management activities, the BU also includes those relating to the sales network, ost Offices and the Corporate functions of oste taliane pA, which also support the other sectors of the Group

STRATEGIC BUSINESS UNITS

F A C AL RV C

he BU refers to the placement and distribution of financial and insurance products and services by Banco osta, such as current accounts, postal savings products (on behalf of Cassa Depositi e restiti), mutual investment funds, loans provided by partner banks and policies

URA C RV C

he BU refers to activities involving the issuance of life and &C insurance products

AYM A D MOB L *

he BU encompasses payment management and payment cards services, also carried out through the L point-of-sale network, as well as mobile and fixed-line telephony, electricity and gas services

*On 20 March 2024, with the presentation of the new 2024/2028 trategic lan, the BU was renamed oste ay ervices

he organisation of oste taliane pA includes business functions³ specialising in the main offer areas that cover the Group's 4 business sectors and two commercial channels responsible for sales of products/services, which are supported by corporate functions of guidance, governance, control and provision of services in support of business processes

n the first half of 2023, the third-party network development model was revised by entrusting it to the company Lis Holding, in order to exploit synergies and deal more successfully and effectively with market demands and future challenges in the commercial services sector his

Third-party network development model entrusted to LIS

led to the change of the commercial oversight for the management of partner channels in the Business and ublic Administration Market Further organisational changes concerned, in the Banco osta function, the strengthening of validation and data governance activities in the area of risk management, as well as micro-founded and customer analysis activities to maximise customer value and commercial actions/campaigns

n the area of Mail, Communication and Logistics, the ransformation Governance function was created in July in order to facilitate and accelerate the transformation process towards the role of an "all-round" logistics operator

n eptember 2023, two ales Areas were created in the Business and ublic Administration Market dedicated respectively to the offer of express courier and parcel products and services, as well as to the commercial development of integrated logistics solutions and indirect xpress Courier and arcel sales

ubsequently, two commercial functions specialising in health care logistics and digital solutions were set up to ensure better commercial coverage of new business

n ovember 2023, in order to accelerate the Group's transformation process and establish itself as an "all-round" logistics operator, a matrix organisational model was introduced in the Mail, Communication and Logistics domain that provides for:

• Business Managers, who are collectively responsible for the achievement of the economic, operational and quality results of each of the four businesses covered - Mail, xpress Courier and arcels, nternational and ntegrated Logistics - making use of the operations carried out both in the Mail, Communication and Logistics area of the parent company, and in the Group companies in the perimeter, and directing the actions necessary for the resolution/prevention of critical issues, as well as for the identification of any opportunities for reviewing the business and related processes;
• rocess Managers, i e the functions that govern, in a cross-company manner, specific phases of the value creation process (such as, for example, the Marketing, Quality, etc functions)

n January 2024, considering the important role played by the logistics business in the overall strategy and the transformation required to cope with the continuous and radical evolution of the relevant market, the Group Logistics Strategy function was established and the tools of the Mail, Communication and Logistics function were further strengthened to develop the integrated logistics business on the one hand and to oversee network, process and supply engineering activities as well as service quality on the other

Lastly, it should be noted that in February 2024, the Company's organisational structure was adjusted through a redistribution of responsibilities and competences among the top company governance functions in order to make it even more responsive to current operations and to achieve the challenging objectives of the new strategic plan more effectively

he decision was therefore taken to focus the strategic development and establishment of corporate strategies on the Chief Executive Officer, with particular reference to the "supervised" businesses and to entrust the management of the Group's industrial businesses to the General Manager, reporting directly to him, with the responsibility of

³ hese are the Mail, Communication and Logistics functions for the offer of mail, parcels and commercial communication services and Banco osta as placement intermediary for the financial and insurance offer he other two business areas are covered by oste ay for the payments, telephony and energy sales services offering and by oste Vita Group for the insurance range

supervising and coordinating the activities of all organisational structures (with the exception of the nternal Auditing function, the Bancoposta function and the insurance, asset management, payment and card payments sectors)

he Chief xecutive Officer also chairs the Group Product Committee (established at the end of the financial year 2022), which expresses advisory opinions on the launch of new products/services and changes to existing ones he General Manager, the Head of Administration, Finance and Control, the Head of Digital, echnology & Operations and the Group trategic Marketing Manager are also members of the Committee

4.2 POSTE ITALIANE'S CORPORATE GOVERNANCE

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he Corporate Governance structure reflects the provisions contained in Legislative Decree no 58, 24 February 1998 (the Consolidated Law on Finance), where applicable, the upervisory rovisions issued by the Bank of taly and applicable to

ew Corporate Governance Code in force from 1st January 2021

oste taliane in view of the activities conducted by Banco osta RFC ( atrimonio destinato Banco osta), the legislation applicable to electronic money institutions as regards the activities carried out by oste taliane in implementation of the agreements entered into with oste ay – the ring-fenced M , and the

recommendations of the Corporate Governance Code in force as of 1 January 2021

oste taliane has adopted a traditional governance model, separating the roles of the Board of Directors and the Board of tatutory Auditors he Company's accounts are audited by an independent auditing firm

oste taliane's financial management is overseen by the talian Court of Auditors (Law 259 of 21 March 1958); the relevant controls are conducted by a Magistrate appointed by the Court of Auditors, who attends meetings of the Board of Directors and the Board of tatutory Auditors

he Board of Directors and Board of tatutory Auditors are elected and dismissed by the hareholders' Meeting, which is also responsible for engaging the independent auditor and determining the related fees he hareholders' Meeting also approves the annual financial statements, amendments to the Company's By-laws and transactions of a non-recurring nature, such as rights issues, mergers and demergers in cases where the law does not grant the relevant authority to the Board of Directors

he Board of Directors consists of nine members (eight non-executives and one executive) and normally meets once a month to examine and resolve regarding the operating performance and vote on resolutions regarding the results of operations, proposals relating to the organisational structure and transactions of strategic importance he Board met 12 times in 2023 Of the nine members of the Board, seven meet the independence requirements of the Consolidated Law on Finance, the By-laws and the new Corporate Governance Code Of the latter, one director lacks only the requirements of independence pursuant to Art 13(1)(i)(2) of Ministerial Decree 169/2020, (containing the "fit &proper" regulation of bank representatives, applicable to the Company by virtue of the Banco osta activities conducted through Banco osta RFC)

n accordance with the provisions of the talian Civil Code, the Board of Directors has delegated certain executive powers to the Chief xecutive Officer and has established, in accordance with the recommendations in the Corporate Governance Code and the Bank of taly's supervisory standards, five Board Committees to provide recommendations and

5 Board committees with propositional and advisory functions

advice: the Appointments and Corporate Governance Committee, the Remuneration Committee, the Control and Risk Committee, the ustainability Committee and the Related and Connected arties Committee

he role of the Chairwoman of the Board of Directors is to lead and oversee the Board of Directors he is the Company's legal representative and exercises the powers provided for by law and the Company's By-laws, and those assigned by the Board of Directors' meeting of 8 May 2023

he Chief xecutive Officer and General Manager, to whom all first-level departments report (except for the nternal Auditing function, which reports directly to the Board of Directors under the supervision– designed to act as a link with the Board of Directors– of the Chairwoman), has powers for the administration of the Company, unless otherwise provided for by law and the Company's By-laws and with the exception of the powers reserved to the Board of Directors he Chief xecutive Officer is also the Company's legal representative within the scope of the powers delegated to him

he Board of Directors, upon the proposal of Chief xecutive Officer Matteo Del Fante, who concurrently resigned as General Manager, by resolution of 28 February 2024 appointed Giuseppe Lasco as General Manager, formerly Joint General Manager he General Manager Giuseppe Lasco participates in Board meetings without voting rights

From that date, all organisational structures report to the General Manager - who reports to the Chief xecutive Officer with the exception of (i) the nternal Auditing Function; (ii) the newly established company function dedicated to the international development of the oste taliane Group's activities, reporting to the Board of Directors (iii) Banco osta RFC, and thus the entire Banco osta Function, which continue to report to the Chief xecutive Officer; (iv) the insurance, asset management, payments and card payments segments, which continue to report to the Chief xecutive Officer

he Board of tatutory Auditors has 3 standing members and 3 alternates he Board verifies compliance with the law, the Company's By-laws and with correct corporate governance principles, also verifying the adequacy of the organisational structure and administrative and accounting systems adopted by the Company and their functionality During the year, the Board of tatutory Auditors met 37 times, 10 of which jointly with the Control and Risk Committee

he upervisory Board has three members t is endowed with autonomous powers of initiative and control, supervises the functioning of and compliance with the Organisational Model pursuant to Legislative Decree 231/2001 and updates it in line with changes in the organisational structure and the relevant regulatory framework, by making justified proposals to the Chief xecutive Officer, who submits them to the Board of Directors

he statutory audit of the accounts is entrusted for the years 2020-2028 to the auditing firm Deloitte & ouche pA for the entire Group he above-mentioned assignment was made pursuant to Legislative Decree no 39/2010 implementing Directive 2006/43/ C and uropean Regulation 537/2014 on public interest entities and the audit of public interest entities, in force since 17 June 2016

With regard to Banco osta RFC's governance, the rules governing the organisation, management and control of Banco osta's operations are contained in the specific Banco osta RFC Regulation in the Report on Operations of BancoPosta RFC, to which reference is made

As a result of the new upervisory tandards applicable to Banco osta RFC, issued by the Bank of taly on 27 May 2014, oste taliane, in providing financial services to the public, is comparable – for the purposes of application of corporate governance regulations – to a major bank in terms of size and operational complexity

For further details on the corporate governance structure, reference is made to the document "Report on Corporate Governance and Ownership Structure - Year 2023"

U A AB L Y GOV R A C

ustainability is an integral component of the company's activities, processes and strategy and is a key driver in the Group's strategic and financial decisions With this in mind, over the years oste taliane has embarked on an important path to develop its business strategy, structurally integrating it with nvironmental, ocial and Governance ( G) principles and directing the Group's efforts towards the creation of shared value for stakeholders and the consolidation of its reputation For oste taliane, being sustainable therefore means defining a clear strategy on G issues and integrating the latter across the board into the strategic objectives defined within the business plans

he Group has adopted a sustainability strategy that brings together G governance, a set of sustainability policies and guidelines, part of the company's body of regulations (which identify general principles, objectives for the future and management methods for the non-financial areas that are priorities for the Company and its stakeholders) and an G trategic lan, i e a set of sustainability objectives that contribute to the well-being of the country and ensure that oste taliane is aligned to the most ambitious common objectives defined worldwide in the field of sustainability his strategy allows the Group to go far beyond its current regulatory obligations and play a central role in creating sustainable value for the community

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

n this context, oste taliane adopted the Guideline " he G rocess in the oste taliane Group", which describes the operation of the process of managing and integrating G principles within the Group through the cross-company, uniform and coherent integration of the principles underlying the concept of sustainability into the various business activities and the permanent, transparent and proactive involvement of stakeholders

he aforementioned Guideline was updated in July 2022 in order to align the document with the main leading practices on the subject and the new organisational structure of the Company

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

hanks to its widespread presence throughout taly, in 2023 oste taliane once again assumed a central role in the country's socio-economic development, confirming its key importance in supporting the community and the territory Operating in a changing environment and constantly influenced by external events, the Group has been able to demonstrate its resilience while fully carrying out its activities n order to achieve its objectives, oste taliane has collaborated with the institutions, supporting both the ublic Administration and small municipalities, contributing to the country's digital and sustainable transition

he figure shown below outlines oste taliane's business model, characterised by the interaction between strategy, value creation process and forms of financial and non-financial capital

The value creation process at Poste Italiane

he main forms of capital oste taliane uses to create value over time

he oste taliane Group's business is based on heterogeneous types of capital characterised by their own identity and certain qualities his feature makes it possible to both specifically analyse and measure them through performance indicators he unique characteristics of each capital, including references to the paragraphs in this document where a broader description is given, are outlined in the following table

Main KPIs for the measurement of Inputs and Outcomes on capital used by Poste Italiane

CAPITAL DESCRIPTION		MEASUREMENT INDICATORS	REFERENCE TO PARAGRAPHS OF THE REPORT
	⦁ ources of financing and ways of using financial resources	INPUT: ⦁ Business continuity plan resources ⦁ quity and liabilities OUTCOME: ⦁ GR 201-1 conomic value generated, distributed and retained ⦁ F 11 ercentage of assets subject to positive and negative environmental or social screening	⦁ Group financial position and cash flow ⦁ ntegration of G factors into investment policies ⦁ ntegration of G factors into insurance policies ⦁ ndicators tables
	⦁ tructures, equipment and infrastructure that have an impact on efficiency and effectiveness	INPUT: ⦁ Corporate fleet data ⦁ Air transport fleet data ⦁ GR 2-7 Widespread presence OUTCOME: ⦁ umber of digital services offered ⦁ umber of contacts handled ⦁ GR 305 missions ⦁ GR 306 Waste ⦁ GR 305-4 ntensity of GHG emissions related to real estate facilities ⦁ Wastewater reporting	⦁ nvironmental impacts of real estate facilities ⦁ nvironmental impacts of logistics ⦁ nnovation and digitisation of products, services and processes ⦁ ndicators tables

⦁ Dematerialisation of procedures and corresponding transactions

⦁ ntellectual property, procedural/organisational system, reputation

⦁ ersonnel knowledge

and skills

INPUT:

• ⦁ Business continuity plan resources
• ⦁ GR 205-1 Companies assessed for risks related to corruption and percentage of operations audited for risks related to corruption
• ⦁ pecific training on procedures and policies of anti-corruption
• ⦁ GR 207-1 Approach to tax

OUTCOME:

• ⦁ GR 205-3 Reports managed by the Whistleblowing Committee
• ⦁ GR 418 Customer rivacy
• ⦁ security and cyber security breaches
• ⦁ umber of customers involved in security breaches
• ⦁ Cases of bribery and corruption and corrective actions
• ⦁ Anti-competitive practices
• ⦁ GR 415-1 olitical contributions
• INPUT:
• ⦁ GR 2-7 umber of personnel by contract type and gender
• ⦁ GR 2-8 umber of non-employees by contract type and gender
• ⦁ GR 401 mployment
• ⦁ GR 403-5 Worker training on occupational health and safety
• ⦁ GR 404 raining and ducation
• ⦁ GR 405 Diversity and qual Opportunity
• ⦁ GR 412 Human Rights Assessment
• ⦁ umber of participants in development programmes
• ⦁ Average annual hours of training for employees by gender and category
• ⦁ raining programmes and career development
• OUTCOME:
• ⦁ Workforce trends (employee turnover)
• ⦁ GR 403-9 Occupational accidents
• ⦁ Diversity
• ⦁ umber of cases of non-compliance with labour standards
• ⦁ Disputes

INPUT:

⦁ uppliers with an O 14001 or MA certified environmental management system

• ⦁ Work with transparency and integrity
• ⦁ Cybersecurity, ecurity and rivacy
• ⦁ nnovation and digitisation of products, services and processes

• ⦁ ndicators tables

• ⦁ Work with transparency and integrity

• ⦁ rotection of human rights at the Company
• ⦁ qual career development opportunities
• ⦁ Occupational health and safety
• ⦁ taff training and development
• ⦁ taff welfare and well-being

• ⦁ ndicators tables

• ⦁ rotection of human rights at the Company

• ⦁ upport for the socio-economic development of local communities

⦁ artnerships and

stakeholder engagement

• ⦁ GR 402 Labour/Management Relations
• ⦁ GR 203-1 Corporate giving and/or corporate citizenship initiatives
• ⦁ xisting tenders that incorporate specific social criteria
• OUTCOME:
• ⦁ umber of contacts handled
• ⦁ Customer satisfaction
• ⦁ GR 203 ndirect economic impacts
• ⦁ Quality of the Universal ostal ervice
• ⦁ Customer experience in ost Offices
• ⦁ Customer complaints by type
• ⦁ Monthly complaints
• ⦁ ettlements
• ⦁ ew customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions
• ⦁ F 14 A Ms for inclusion
• ⦁ F 14 ost offices for cultural integration

INPUT:

• ⦁ GR 301 Materials
• ⦁ GR 302 nergy
• ⦁ GR 303 Water and ffluents
• ⦁ otal cost of energy purchased for real estate facilities
• ⦁ xisting tenders that incorporate specific environmental criteria

OUTCOME:

• ⦁ GR 305 missions
• ⦁ GR 306 Waste
• ⦁ GR 305-4 ntensity of GHG emissions related to real estate facilities
• ⦁ Wastewater reporting
• ⦁ Weight of electricity consumption relating to real estate facilities by type of business
• ⦁ Dialogue and transparency in relations with the authorities
• ⦁ Relations with social partners
• ⦁ Financial inclusion
• ⦁ Quality and customer experience
• ⦁ Legality and incorporation of G criteria within the procurement process
• ⦁ ndicators tables

⦁ atural resources and ecosystem services

• ⦁ Legality and incorporation of G criteria within the procurement process
• ⦁ nvironmental impacts of real estate facilities
• ⦁ nvironmental impacts of logistics
• ⦁ ndicators tables

oste taliane's G trategic lan, built on 8 pillars related to the 18 material issues, identified through the materiality analysis process subsequently described in Chapter 5 " trategy", is conducive to the promotion of a complete and effective disclosure of the Company's performance

STRATEGIC PILLAR	MATERIAL TOPIC	SDG	KEY MEASUREMENT INDICATORS	CAPITALS IMPACTED
	Work with transparency and integrity		▪ GRI 2-27 Compliance with laws and regulations ▪ GRI 205 Anti-Corruption ▪ GR 207 axes ▪ GR 415 ublic olicy
	Legality and incorporation of G criteria within the procurement process		▪ xisting tenders that incorporate specific environmental criteria
INTEGRITY AND TRANSPARENCY			▪ xisting tenders that incorporate specific social criteria
			▪ GR 301 Materials
	taff training and development		▪ GR 404 raining and ducation
PEOPLE DEVELOPMENT	taff welfare and well-being		▪ GR 2-7 mployees ▪ GR 2-8 Workers who are not employees ▪ GR 401 mployment
	Relations with social partners		▪ GRI 2-30 Collective bargaining agreements ▪ GR 402 Labour/Management Relations
	Occupational health and safety		▪ GR 403 Occupational Health and afety

Poste Italiane Group		Report on Operations at 31 December 2023

STRATEGIC PILLAR	MATERIAL TOPIC	SDG	KEY MEASUREMENT INDICATORS	CAPITALS IMPACTED
DIVERSITY AND INCLUSION	rotection of human rights at the Company		▪ GR 405 Diversity and qual Opportunity
	qual career development opportunities		▪ GR 404 raining and ducation
CREATING VALUE FOR THE COUNTRY	upport for the socio-economic development of local communities		▪ GR 203 ndirect economic impacts
	Dialogue and transparency in relations with the authorities		▪ Monetary contributions related to activities with the ability to influence public policies
	Financial inclusion		▪ ew customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions
GREEN TRANSITION	nvironmental impacts of logistics		▪ GR 302 nergy ▪ GR 305 missions
	nvironmental impacts of real estate facilities		▪ GR 302 nergy

	n Operations at 31 December 2023	SDIR CERTIFIED
nd

			▪ GR 303 Water and ffluents ▪ GR 306 Waste
			▪ GR 305 missions
	Quality and customer experience		▪ Quality of universal service ▪ Customer experience in ost Offices ▪ Customer complaints by type ▪ Customer satisfaction ▪ ettlements
CUSTOMER EXPERIENCE	Cybersecurity, ecurity and rivacy		▪ GR 418 Customer rivacy
INNOVATION	nnovation and digitisation of products, services and processes		▪ umber of digital services offered ▪ umber of digital transactions
SUSTAINABLE FINANCE	ntegration of G factors into investment policies		▪ F 11 ercentage of assets subject to positive and negative
	ntegration of G factors into insurance policies		environmental/social screening ▪ G products and services related to Asset Management

4.4 GROUP STRUCTURE

At 31 December 2023, the Group held, directly and indirectly, equity investments in 51 companies and consortia, of which 33 are consolidated on a line-by-line basis, 3 are subsidiaries and valued using the equity method, 8 are associates and valued using the equity method, 1 is an associate classified under financial assets held for sale pursuant to FR 5 and 6 represent minority stakes

-

-

-

-

-

-

he following table describes the activities of the Group companies, including them within the respective Business Units

described in the section "Omnichannel approach and group operating segments" to which reference should be made for more details

	SDA Express Courier SpA	A Group company that mainly carries out activities in the service of logistics processes in the xpress Courier sector in relation to the oste taliane branded arcels offer t also offers dedicated logistics services with customised integrated logistics solutions
MA L, ARC L A D D R BU O	Postel SpA	Company operating in the business communications sector mainly oriented

	towards companies and ublic Administration, to which it provides a full suite of services from printing, delivery, electronic document management ( DM), incorporating integrated Data Driven Marketing solutions
Address Software Srl	Company that develops, for ostel pA and oste taliane pA, application software packages for the processing of personal and territorial data (normalisation of addresses, data cleaning and geo-marketing) As of January 2024, oste taliane pA wholly owns the company and the process of insourcing the company into oste taliane pA through a merger by incorporation has been initiated
Poste Air Cargo Srl	his company provides commercial air transport, cargo courier transport and insures, as the Group's sole provider, the air logistics in support of mail and parcel delivery
MLK Deliveries SpA	Company that carries out home delivery activities for e-commerce through innovative and technologically advanced delivery services, such as cheduled Delivery, which allows customers to customise deliveries by choosing the date and time of receipt and ame Day (the same day on which the purchase is made) and to avail of a detailed tracking service he Company exclusively uses the technology of Milkman pA On 31 January 2024, the company formalised the partnership with Mazzocco rl through the establishment of the vehicle MLK Fresh rl, through which the parties will offer advanced delivery services in taly dedicated to the fresh food segment in the B2C e-commerce and/or scheduled deliveries market
Poste Welfare Servizi Srl	Company that manages upplementary Health Funds, services for the acquisition and validation of databases, services and liquidation of services on behalf of private health funds; it also supplies services for the management of oste Vita Group health and welfare products Following the transfer in January 2022 by oste Vita in favour of oste taliane of 100% of the shares held in oste Welfare ervizi, said company, as from 2022, is included within the Mail, arcels and Distribution trategic Business Unit
Plurima SpA	he company operates in healthcare logistics and document storage and management services for public and private hospitals t wholly owns Bridge Technologies Srl and Logos Srl.
Nexive Network Srl	Operating Company which, as of 1 October 2021, carries out the management and coordination of the new delivery network, made up of exive's external partners, used to support the "last mile" phase of oste taliane's delivery process for postal products and small parcels
Europa Gestioni Immobiliari SpA	his company manages and optimises oste's real estate assets that are not instrumental; it carries out town planning and construction transformations, in order to assure the relative marketing (new leases and sales)
Nexive Scarl	Consortium company that coordinates the activities of consortium members for postal delivery activities mainly for ublic Administration customers, awarded through participation in public tenders

	SDIR
	CERTIFIED
023

Sourcesense SpA ourcesense is a company operating in the nformation echnologies sector in taly and the UK with significant expertise in developing cloud-native solutions based on open source technology t wholly owns Sourcesense Digital Srl, Sourcesense Technology Srl, Sourcesense Limited (UK), Sourcesense Platforms Srl and 20% of Consorzio talia Cloud Agile Lab Srl Company specialised in data management, offering tailor-made technology solutions that take advantage of artificial intelligence, as well as services involving the resale of open source software products developed by technology partners As of 1 December 2023, the merger of the Agile group companies into Agile Lab rl became effective PatentiViaPoste on-profit consortium that provides centralised printing services, the ScpA dispatch and delivery of new licences and copies of log books he contracted activities are terminated during 2022 with the exception of the Driver's Licence Delivery service extended to 30 June 2023 As of ovember 2023, this service has been awarded to oste taliane pA; the subsidiary will ensure the completion of some work Consorzio his is a non-profit consortium that manages and reports on the payment of PosteMotori prices due by users for the cases within the competence of the ransport Department of the Ministry of nfrastructure and ransport (e g issue of "pink sheets", issue and renewal of copies of driving licences, registrations, MO s, etc ) As provided for in the Contract of Assignment prot 5266 of 13 July 2021, the activities covered by this agreement were completed on 31 March 2022, however, there are activities pending development Sengi Express Company based in Hong Kong that deals with the creation and management Limited of cross-border logistics solutions for Chinese e-commerce players active in the talian market t offers a complete range of services to Chinese e commerce operators, tailored to the specific needs of individual merchants , with competitive commercial solutions for each stage of the logistics chain connecting China to taly Sengi Express Company, based in China, of engi xpress Limited to which it provides Guangzhou business support services (operations, services, back office, Limited administrative services, etc ) Consorzio his consortium coordinates the activities of the consortium members ( oste Logistica Pacchi taliane, DA, ostel, oste Air Cargo, oste Assicura and exive etwork) ScpA in transport overland and by air of postal bills, integrated logistics, printing and envelope filling, electronic document management, e-commerce, marketing and telemarketing Indabox Srl his company develops and telematic systems offering logistics support to e-commerce via the web, offering customers a service for the collection of parcels purchased on-line from authorised retailers

	Kipoint SpA	hrough a network of franchise stores, this company sells national and international deliveries, packaging and packing Kipoint is also unto oste and ndabox n addition, following the stipulation of the contract with Grandi tazioni, it also manages luggage deposits at major railway stations
	Sennder Italia Srl	he Company carries out national and international long-distance road transport activities he business model is based on highly digitised processes and proprietary platforms, creating optimised management of processes and distances travelled
	ItaliaCamp Srl	Organisation that develops social innovation processes with a positive impact for the country, creating connections between institutions, companies, associations and universities
	Conio Inc.	his U company creates and offers innovative services in digital currencies t controls 100% of Conio rl which is involved in the research, development and testing of results consisting of innovative electronic payment technology solutions (cryptocurrencies, bitcoin)
F A C AL RV C	BancoPosta RFC	On 14/04/2011, oste taliane pA's hareholders' Meeting resolved to set up assets for Banco osta business as governed by residential Decree 144 of 14 March 2001 and determined the assets and legal relations included therein and the rules of organisation, management and control On 1 October 2018, the set of activities, assets, goods and legal relations constituting the electronic money and payment services business unit was contributed to Ring-Fenced Capital within the subsidiary oste ay pA in order to enable the latter to operate as an lectronic Money nstitution ( M )
		On 28 May 2021, oste taliane's xtraordinary hareholders' Meeting approved the removal of the restriction on the allocation of Banco osta RFC regarding activities, assets and legal relations constituting the "Debit Business" in order to confer the latter in favour of oste ay pA, effective 1 October 2021
	BancoPosta Fondi SpA SGR	Asset management company that operates through the establishment and management of mutual investment funds , and the individual portfolio management service relating to institutional mandates assigned to the Group
	Replica SIM SpA	ecurities brokerage company, active in proprietary and third-party brokerage and asset management as investment manager and execution broker for the management of some investment funds
	Financit SpA	art of the B aribas Group, this company operates in the salary and pension-backed loan and delegation of payment sector
	Eurizon Capital Real Asset SGR	A company specialising in investments supporting the real economy, it sets up and manages Alternative nvestment Funds (A Fs) for private and

SpA

institutional clients

	Anima Holding SpA	nvestment holding company in the asset management sector t controls 100% of Anima GR, which, in turn, controls 100% of Anima Asset Management Ltd
	Moneyfarm Holding LTD	Digital asset management company, specialised in F ( xchange raded Funds) portfolios
	Scalapay Limited	A company operating in several uropean countries in the Buy ow ay Later ("B L") market on online and physical channels, allowing end customers to pay for a product/service in three interest-free monthly instalments
	Poste Vita SpA	nsurance company that provides insurance and reinsurance in Life classes
URA C RV C	Poste Assicura SpA	nsurance company that provides personal protection (health and accident), property protection (home and assets) and credit protection (insurance of loans and mortgages from unforeseen events)
	Poste Insurance Broker Srl	nsurance broker for the distribution and brokerage of insurance and reinsurance
	Net Holding SpA	Holding company engaged in the holding and management of equity investments set up for the acquisition of Net Insurance SpA.
	Net Insurance SpA	An insurance company whose offer is dedicated to insurance coverage related to the world of credit and, in particular, to salary and pension-backed loans, protection and to insurtech through agreements with technology partners; it wholly owns Net Insurance Life SpA, an insurance company active in the life insurance classes that mainly offers insurance coverage connected and instrumental to the %C products offered by the parent company et nsurance pA
	Cronos Vita Assicurazioni SpA	Corporate vehicle set up in August 2023 to complete the rescue of urovita n October 2023, Cronos Vita pA changed its company name to Cronos Vita Assicurazioni pA as a result of the change in its corporate purpose, which now includes the exercise of private insurance as well as the management of supplementary pension schemes
	PostePay SpA	A company that integrates electronic money and payment services, acting as an lectronic Money nstitution ( M ) and Mobile Virtual etwork Operator (MV O) with the osteMobile brand, and sale of energy (electricity and gas) through the oste nergia service
	LIS Holding SpA	A company operating in the talian proximity payments market offering services including pay slips, prepaid payment cards, phone top-ups and vouchers and other solutions for merchants and businesses As of 31 December 2023, the partial demerger of Lis Holding pA became effective, with direct assignment of the entire stake of Lis ay pA to oste ay pA –

		M RFC
	LIS Pay SpA	lectronic money institution providing payment and e-money services through the U OL network, wholly owned by oste ay pA
AYM A D MOB L	ConsorzioServizi ScpA	Consortium for the provision of mobile telephony services, integrated messaging services (info device services related to financial instruments) exclusively for oste taliane, as well as, as of 1 July 2023, the natural gas supply service for oste taliane pA
	Volante Technologies Holdco Inc.	An American company which wholly owns Volante echnologies LLC , specialising in the development of technological solutions underlying the payment and financial messaging processes on cloud and on-premise for the acceleration of digital transformation and the modernisation of financial services Following the corporate restructuring, which took place in ovember 2023, oste ay pA became a shareholder of Volante echnologies Holdco nc with the same shareholding previously held in Volante echnologies nc now called Volante echnologies LLC
	Nexi SpA	A company that carries out activities in the field of digital payments ( ay ech), offers services and technology infrastructure for banks, enterprises and ublic Administration t operates in three market segments: Merchant Services & Solutions, Cards & Digital Payments e Digital Banking & Corporate Solutions

Below are the main transactions that took place during the period and after 31 December 2023:

	Sennder Technologies - sennder	On 3 April 2023, as a result of the capital increase reserved for the shareholder sennder echnologies GmbH, the oste taliane stake in sennder talia went from 65% to 60%
MA L, ARC L	Italia
A D D R BU O		On 30 May 2023, oste taliane's Board of Directors approved the renegotiation
		of the current partnership with sennder Technologies GmbH ("sennder
		Tech") As part of the renegotiation, oste taliane contributed 35% of its shares
		in sennder talia to sennder ech, increasing its stake in the latter from 1 7% to
		10 2% on a fully diluted basis Following the completion of the transaction in
		June 2023, oste taliane holds a 25% stake in sennder talia
		n addition, the transaction resulted in the recognition of a total gain of
		approximately €109 million classified as revenue since it was a sale of a
		controlling interest, with a positive impact on the Group's B , as a result of
		ordinary operations

		On 28 eptember 2022, oste Vita's Board of Directors approved the promotion
		of a voluntary total cash takeover bid for ordinary
	Net Insurance	shares and warrants of Net Insurance SpA
		(" et nsurance"), in consultation with certain	acquired a controlling
		shareholders et nsurance, a company with	stake
URA C		shares traded on the regulated market known as
RV C		uronext AR Milan ("	M") organised and managed by Borsa taliana pA,
		is an insurance company whose offer is dedicated to insurance coverage related
		to the credit sector and, in particular, of salary and pension-backed loans,
		4 protection and insurtech3F , thanks to agreements with technology partners
	he transaction is aimed at the acquisition of control of et nsurance by the
		insurance group headed by oste Vita and will enable it to achieve significant
		growth in the &C/protection insurance segment pecifically, oste Vita intends
		to identify et nsurance as: (i) the insurance group's "competence centre" for
		insurance products linked to the alary-Backed Loans and (ii) reference product
		factory with regard to the distribution of insurance products on third-party
		networks, with particular reference to banking networks
		On 20 April 2023, the squeeze-out procedure was finalised, as a result of which
		et Holding (the corporate vehicle directly controlled by oste Vita that promoted
		the bids) holds a controlling interest of 97 84% in et nsurance (which in turn
		holds 100% of et nsurance Life pA), and the current C O of et nsurance,
		who acted in concert with the takeover bid, holds a minority interest of 2 16%
		he total outlay paid by et Holding for the acquisition of the stake amounted to
		approximately €181 million
		On 21 April 2023, BL Banca	pA, pursuant to its commitment in the event of a
		successful bid, acquired a 40% stake in	et Holding for a consideration of €73 1
		million
		he net outlay for the around €108 5 million	oste Group for the acquisition of the stake amounted to

Other transactions

On 24 ovember 2022, binding agreements were signed for oste taliane to participate, with an investment of approximately €3 million, in a capital increase promoted by Moneyfarm in order to finance part of the purchase price of 100% of Profile Financial Solutions Ltd, a company active in the pension fund consolidation business in the UK under the rofile ensions brand Following receipt of the necessary approvals from the UK regulator (FCA4F 5 ) on 5 July 2023, the closing of the transaction was formalised at the end of July

On 24 January 2023, ourcesense finalised the acquisition of Eco Mind Ingegneria Informatica Srl (" co-Mind") and its subsidiary HeadApp Srl, companies operating as software factories specialising in the design and development of business, mobile and cloud-native solutions and augmented and virtual reality solutions, for a consideration of about €1

⁴ nsurtech identifies the entire digitisation process of the insurance industry, from policy underwriting to claims management, through the use of technologies such as Big Data Analytics, Artificial ntelligence and Application rogram nterfaces (A s)

⁵ Financial Conduct Authority

million n order to simplify the corporate structure of the ourcesense Group, the two companies co Mind and HeadApp were merged into the ewCo named ourcesense latforms rl he merger transaction took effect from 1 July 2023

On 29 June 2023, oste taliane notified Milkman SpA ("Milkman") of its intention to exercise its call option on the shares held by the latter in MLK Deliveries SpA ("MLK"), equal to approximately the remaining 30% of the share capital of MLK itself (the "Milkman take") Based on the criteria originally agreed upon in the contractual agreements signed in 2020, the exercise price of the option was estimated at €19 6 million Following the transfer of the Milkman take, formalised in July, oste taliane acquired full control of MLK

On 28 eptember 2023, as a result of the cash received from the sale to oste taliane of the 30% stake held in MLK, the Milkman extraordinary shareholders' meeting resolved to distribute dividends in the amount of approximately €15 3 million, of which €3 6 million in favour of oste taliane

On 3 August 2023, as part of a system-wide transaction to take over the policy portfolio of Eurovita SpA (" urovita") following the latter's crisis, oste Vita contributed to the establishment of the corporate vehicle Cronos Vita SpA ("Cronos"), invested in by, in addition to oste Vita itself, Allianz, Generali talia, ntesa anpaolo Vita and Unipol ai Assicurazioni, with the purpose of acquiring a business unit consisting essentially of the assets and liabilities relating to the urovita insurance business, following the latter's admission to compulsory liquidation proceedings

n eptember 2023, the insurance companies involved, Cronos, the banks distributing urovita products and certain system banks signed the final agreements within their respective competences to regulate their rights and obligations in relation to the transaction

As part of the aforementioned transaction, on 18 eptember 2023, oste Vita participated in the first capital increase of Cronos, with a stake of approximately €1 7 million

On 17 October 2023, VA authorised Cronos to carry out insurance business (resulting in a change of company name from Cronos Vita p A to Cronos Vita Assicurazioni SpA) On 27 October 2023, oste Vita participated, together with the other shareholders of Cronos, in proportion to its 22 5% stake, in the second capital increase of this company of approximately €212 5 million, of which approximately €47 8 million was attributable to oste Vita

o complete the transaction, on 30 October 2023 VA authorised the sale of the business unit from urovita to Cronos, effective from 27 October 2023

he stake in Cronos at 31 December 2023 was classified as an asset held for sale ( FR 5) in consideration of the intention to hold the stake for a limited period of time and the agreements reached at the conclusion of the transaction regarding the stipulation of a firm purchase commitment within 12 months for the transfer of the business units between the insurance companies involved in the transaction and Cronos

n June and July 2023, Volante Technologies Inc ("Volante") issued in two tranches a convertible loan totalling \$16 6 million, which was subscribed by some of the company's shareholders, including oste ay, in the amount of \$508 thousand n eptember 2023, Volante also carried out a senior debt refinancing transaction, as part of which the warrants to be assigned to subscribers of the convertible loan became exercisable oste ay exercised its warrants, converting them into newly issued ordinary shares herefore, as a result of the transactions described, the oste ay stake in Volante went from 2 9% to 2 4% (on a fully diluted basis)

As part of the agreements to restructure its debt, Volante implemented a corporate reorganisation process that saw oste ay and all other shareholders become partners in the new entity Volante echnologies Holdco nc with the same stakes already held in Volante echnologies nc, a wholly-owned subsidiary of Volante echnologies Holdco, nc that changed its name to Volante echnologies LLC

On 31 January 2024, through the establishment of the ewCo named "MLK Fresh Srl" ("MLK Fresh"), the partnership in the Fresh Food sector between MLK and Mazzocco Srl ("Mazzocco"), an taltrans Group company operating as a national refrigerated courier, was formalised

MLK Fresh, 70% owned by MLK and 30% by Mazzocco, will be the vehicle through which the parties will offer advanced delivery services in taly dedicated to the fresh food segment in the B2C e-commerce and/or scheduled deliveries market hese services will be offered using: (i) the logistics infrastructure provided by the taltrans Group company; (ii) the technology enabling the cheduled and ame Day delivery services provided by MLK; and (iii) commercial services (e g sales), mainly provided by oste taliane through its Business and ublic Administration division

On 28 February 2024, oste ay signed an agreement to acquire 20% of & GROU etworks & ransactional ystems Group pA (" & GROU "), a leading talian company in software solutions for electronic payments he transaction, whose closing is subject to the fulfilment of conditions precedent, aims to enhance oste ay's technological expertise in order to support its expansion strategy in the digital payments market

Intra-group transactions

n order to simplify the corporate structure of the Group, on 29 eptember 2022, the reverse merger of Plurima Bidco Srl into Plurima was approved by the shareholders' meetings of the two companies he transaction, which provided for the application of the regulatory simplifications for mergers of wholly-owned companies, became effective as of 1 January 2023

On 26 April 2023, lurima pA finalised the purchase of a further 40% of the share capital of Bridge Technologies SpA for a consideration of approximately €0 9 million, thus achieving 100% ownership

n June and July, respectively, the Boards of Lis Holding and oste ay approved the project for the partial demerger of Lis Holding in favour of PostePay, with direct assignment of the 100% stake in L ay to the M RFC n this regard, on 28 June 2023, oste taliane's Board of Directors authorised the participation of oste taliane pA in the extraordinary shareholders' meeting of oste ay pA to approve the demerger transaction and the amendment of the rules of the M RFC, in order to allow the allocation to the latter of investments in other payment institutions and the removal of the restriction on the allocation to the M RFC of the investment in L Holding After obtaining the authorisation from the Bank of taly, the transaction was finalised on 5 December 2023 with the signing of the deed of demerger, which took effect on 31 December 2023 he transaction will produce the following benefits for the subsidiary oste ay: (i) strengthening the system of internal controls; (ii) accelerating the integration of the L ay business; (iii) optimising capital absorption

On 12 October 2023, ostel pA acquired the shares in Address Software Srl held by third-party shareholders amounting to 49% of the company's capital; consequently, from that date and until 24 January 2024, ostel pA held 100% of the shares in Address oftware rl

On 24 January 2024, with the aim of standardising, evolving and engineering the operating processes of the Group's technology platforms, as well as streamlining and rationalising the operating structure, also with a view to achieving a reduction in the typical costs of each corporate structure, with a consequent improvement in the Group's economic results, ostel sold its entire stake in Address oftware rl to the parent company oste taliane his transaction was in preparation for the start of the process of merger by incorporation of Address oftware rl into oste taliane pA he merger transaction, which was submitted in February 2024 to the approval of the shareholders' meeting of the company to be merged and to oste taliane's Board of Directors (as allowed by the relevant Bylaws), with the application of the simplifications provided for by the regulations for merger transactions of wholly-owned companies, will become effective in the financial year 2024

n order to simplify and rationalise the structure of the Agile Group, the reverse merger by incorporation of Agile ower rl into Agile Lab rl and the direct merger by incorporation of A M2 rl, Agile ext rl and Agile kill rl into Agile Lab rl were finalised on 28 ovember 2023

On 4 March 2024, Poste Logistics SpA (also " ewCo") was established, whose share capital is wholly-owned by oste taliane pA he ewCo will focus on integrated logistics activities for the oste taliane Group, benefiting from the business unit of DA xpress Courier pA (" DA") concerning the integrated logistics business, through a partial demerger transaction hrough this transaction, the Group aims to strengthen its presence in the integrated logistics business, a business that covers inbound, warehouse management, Full ruck Load (F L) and Less han ruck Load (L L) transport, warehousing and international logistics activities he transaction - whose partial demerger project has already been approved by the Boards of Directors of the companies involved in the transaction that met in March, and which will also be approved by the relevant extraordinary shareholders' meetings - will be formalised by the second half of 2024

4.5 OMNICHANNEL APPROACH AND GROUP OPERATING SEGMENTS

OM CHA L RA GY

MA L, ARC L A D D R BU O RA G C BU U

F A C AL RV C RA G C BU U

URA C RV C RA G C BU U

AYM A D MOB L RA G C BU U

4 5 1 OM CHA L RA GY

he digital transformation undertaken by oste taliane in recent years has involved not only its own offer, but also the distribution model which, through an omnichannel strategy, allows the Company the possibility to provide services in step with the changed needs of its customers

Digital channels, and more generally remote channels, support the physical channel, oste taliane's historical asset, every day in the management of customer relations During 2023, oste taliane's omnichannel interaction platform reached more than 23 million interactions5F ⁶ per day; moreover, during the year, the oste taliane single app infrastructure was created, in

which all oste taliane services will gradually converge, in order to provide customers with single access to services he Covid-19 pandemic encouraged the acceleration of the transition to the new operating model, enabling the Company to respond quickly to changes in the market by leveraging its digital platforms, that exploit the opportunities arising from technological innovation to create new personalised products and services and by opening up additional channels of communication with its customers

he Group's integrated multi-channel platform provides for the monitoring of customers and the provision of services through 3 channels:

• the proprietary physical network: this consists of the ost Offices, the sales force for business customers and the logistics network for mail and parcel delivery;

⁶ Daily contacts of customers with the group's omnichannel platform: visits to the oste taliane Group's website and apps, calls to the contact centre, customers served in ost Offices, transactions carried out at A Ms and third-party networks, transactions on physical O terminals and e-commerce, delivery of parcels and registered mail he operation of L is included

• a digital infrastructure and remote contact points: made up of all the Group's digital properties and the contact centre, capable of serving the entire national population;
• the third-party physical network: consisting of approximately 51 thousand points, the result of commercial partnership agreements for the marketing of Group products and services managed also through the recent acquisition of the company L

Below is a representation of the Group's omnichannel platform:

4 5 1 1 HY CAL WORK OF O OFF C

he post office network is governed by the ost office network business function organised into Macro Areas, Branches and ost Offices covering the whole country

		31 December 2023		31 December 2022
	Personnel	Unit	Personnel	Unit
Macro Areas Post Office Network	6	0.5	6	1.1
Branch offices	132	4.2	132	3.6
Post Offices	12,755	47.4	12,755	49.3
Total	12,893	52.1	12,893	54.0

All workforce figures are expressed in Full Time Equivalent in thousands.

he change in the workforce, compared to the previous year, reflects the management dynamics during 2023 n particular, within the ost Offices, the negative change (about -1,900 staff) reflects the termination of employment contracts during the year, only partially offset by new hires and internal promotions from other areas/functions; the decrease in staff in the Macro Areas is mainly attributable to the organisational change of the mall conomic Operators ( O ) organisational model, defined at the end of December 2022, and which saw the transfer of the " mall Business pecialist" and "Mail and arcels pecialist" professionals from the ost Office network Macro Areas to the Branches et of this organisational change within the function, the staffing levels in both areas are substantially in line with the previous year

MACRO AR A O OFF C WORK

Annual Report 2023

G OGRA H CAL D R BU O OF O OFF C A D BRA CH OFF C

12,755 Post Offices

132 branches

n order to support the enrichment and dynamism of the offer, the process of enhancing skills through the establishment of the Front nd Operator6F 7 continues, in order to better manage

innovative businesses ( nergy, Fibre and hird- arty Motor Liability) and an innovative offer format was implemented on a panel of about 1,250 ost Offices As of ovember 2023, the sale of the Banco osta current account by the Front nd Operator was started on an experimental basis in some oste Casa&Famiglia points, in order to continue the expansion of the offer

At 31 December 2023, the set-up of the approximately 1,2507F ⁸ planned points of the unto oste Casa&Famiglia network was completed,8F 9 (of which 458 ost Offices with Corner, 578 ost Offices with lowered counter stations and 212 ost Offices with ew Layout Corner)

⁷ he Front nd Operator is the professional figure in the unto oste Casa&Famiglia network who focuses on the sale of products with a high relational content such as third-party motor liability, energy and fibre

⁸ At 31 December 2023, there were 1,248 completed ost Offices and 3 being fitted out

⁹ he " unto oste Casa e Famiglia" project on the core network (1,251 ost Offices with the highest traffic) envisages an evolution of the former ostepay corners towards a model dedicated to the marketing of products and services with a high relational content ( nergy,

n addition, in 2023 the portfolios of high-net-worth customers were enhanced9F ¹⁰, optimising their redistribution through the creation of around 70 new "Dynamic" portfolios10F ¹¹, assigned to room consultants

he organisational model of the ost Office network called "Hub & poke (H& )1F ¹²" was launched in 2020 to better capitalise on the potential of the territory, strengthen the commercial, operational and managerial presence and is based on an approach that guarantees, especially for smaller ost Offices, efficiency and operational continuity, thanks to the creation of ost Office basins

n particular, the H& project allows Hub Office Managers to autonomously replace staff in their area of reference, and provision is made for the gradual extension of the secondment application12F ¹³ to all of the approximately 1,000 Hub Offices and over 6,000 poke Offices involved in the roject between 2023 and 2024 At 31 December 2023 the extension of this application to about 360 active H& basins13F ¹⁴ (about 360 Hub offices and about 2,300 poke offices) was completed

¹⁰ Clients with specific characteristics (e g age between 18 and 79, medium to high investment potential, etc ) and characterised by a potential need for diversification and return

¹¹ ortfolios associated with clients characterised by a potential need for diversification and return uch clients are selected by combining high levels of assets with qualitative characteristics, such as medium to high levels of liquidity (i e maturities in the next two years), age between 18 and 79, and multi-banking At 31 December 2023, there were approximately 1,200 dynamic portfolios

¹² etwork management and development system in which connections are made, using by analogy an expression referring to the bicycle wheel, from the spoke to the hub and vice versa n this specific case, the Hub Office Manager is responsible for coordinating staff in terms of planning personnel attendance and managing replacements, as well as providing commercial support, especially for products sold at the counter

¹³ he secondment application is a web application that takes over the process of management of resources applied on a daily basis at a ost Office other than the one of assignment

¹⁴ H& basins consist of a Hub office and a number of poke offices that vary according to the geographical scope of the basin

Polis Project - House of Digital Services

Within the framework of the "National Plan for Complementary Investments" (Law Decree no 59 of 6 May 2021, converted, with amendments, into Law no 101 of 1 July 2021) of the National Recovery and Resilience Plan ( RR), with the aim of promoting the economic, social and territorial cohesion of the country and overcoming the digital divide in small towns and inland areas, the Polis Project - House of Digital Services was approved

The two lines of intervention

55

• Sportello Unico (One-stop shop): makes provision for the digital renovation and upgrading by 2026 of 6,933 Post Offices to enable talians resident in municipalities with fewer than 15,000 inhabitants, equipped with at least one ost Office, to easily use the services of the ublic Administration he ost Office will be transformed into a hub for physical and digital services, through the introduction of new technologies and tools to enable complete, fast, easy and digital use of services 24 hours a day
• Spaces for Italy: envisages the creation of a national network of coworking* and training spaces with a widespread presence in taly Workstations, meeting spaces, shared services, event and training areas will be open to private individuals, companies and public administration, universities and research centres

Some PA services that can be provided at the One-stop shop

Identity Documents
Electronic Identity Card
Passport
National Services Card
Health card
Tax code
Company of Children

2023 Initiatives

• One-stop shop: in the course of 2023, real estate and technological upgrades were launched in post offices at 1,739 sites (a total of 1,766 works started since the beginning of the project) and works were completed at 941 post offices (a total of 1,190 works completed since the beginning of the project until the end of February 2024)
• Spaces for Italy: during 2023, renovation work continued on the buildings owned by the Company, and at 29 February 2024 a total of 55 building works on the project sites had been started and 31 had been completed

Sustainable development goals

With the olis roject, oste taliane intends to play a leading role in the country's recovery for the benefit of citizens and their participation in public life by adopting a responsible approach in order to reduce its environmental footprint and contribute to the low-carbon transition of the economy and the entire country he initiative is consistent with oste taliane's broader strategy of sustainable, digital and inclusive development

the olis roject generates significant impacts throughout the territory, also with a view to achieving the ustainable Development Goals ( DGs):

On 30 January 2023, in the presence of the resident of the Republic, the resident of the Council, the ecretary of tate of the Holy ee, numerous government representatives, and institutions, the OL project was presented in Rome by the Chairwoman and C O of the Company, to the 7,000 mayors of the municipalities involved, which in taly represent 90% of the municipalities with a land area equal to 80% of the country and in which 16 million people live

For more information on the project, please refer to the website under olis project

* Working concept consisting of a workspace shared by several companies or independent professionals n this environment, people can work together, share ideas and resources and develop professional relationships

4 5 1 2 HY CAL WORK - BU A D UBL C ADM RA O

he commercial supervision and sale of the Group's products and services to businesses and Central and Local ublic Administration is guaranteed by oste taliane's Business and ublic Administration function

he organisation of the sales force guarantees territorial coverage focused by product sector, through:

• 3 ales Macro Areas (Lombardy orth West, Central orth and orth ast, Central outh), with exclusive commercial responsibility for mail and communication revenue;
• 2 ales Areas dedicated respectively to the offer of xpress Courier and arcels (C ) products/services and to the commercial development of ntegrated Logistics solutions and C ndirect ales;
• 1 Commercial area specialising in the offer of financial and insurance products for large business customers and ublic Administration;
• 1 Commercial area for Central and Local ublic Administration related to Metropolitan Regions and Cities;
• 2 Business areas specialising in health logistics and digital solutions respectively

Macro Areas Business and ublic Administration

services Lombardy and North-western Area Central North and North-eastern Area Central-south Area Central Facilities/Public Headquarters Administration/ Financial, Parcel and Integrated Logistics Headquarters/Healthcare Logistics and Digital Solutions Area Headquarters

4 5 1 3 LOG C WORK

he Group's mail and parcel services are provided through two synergistic logistics networks: the postal logistics network for the management of mail, now evolved also to contribute to the management of small parcels and the parcel logistics network.

From 2020 onwards, there will be an increase in the interchange of small parcel volumes ("carriable" parcels, i e weighing less than 5 kg), using cost-effectiveness as a discriminating factor he delivery of these products in taly can be carried out synergistically by the postal and parcel logistics network and by the courier logistics network according to a dynamic approach, aimed at maximising efficiency for each area

As part of the transformation plan for the Mail and arcels segment and with the aim of making the oste taliane Group an integrated logistics operator, an important initiative was launched in 2023 to develop the Integrated Logistics14F 15

¹⁵ t represents the integration of warehousing services (goods entry, storage, order management/arrangement, shipment preparation) and distribution services B2B distribution is carried out through oste Delivery Business express courier services or through F L (Full ruck Load) or L L (Less han ruck Load) services B2C distribution is carried out through oste Delivery Business express courier

market segment, i e the third-party management of customers' warehouse goods and related delivery activities For more information, please refer to the activities in the period of the Mail, arcels and Distribution trategic Business Unit in the remainder of this document

n addition, from the second quarter of 2022, the oste taliane Group entered the healthcare logistics market through the acquisition of the company lurima, which has been operating in the hospital sector for several years, offering logistics solutions and services such as outsourced pharmaceutical warehouse management

O AL LOG C WORK AC V

he postal logistics network accepts, sort and delivers mail products he following chart provides an overview of the logistics network value chain and the main quantitative drivers

he organisational model for the postal logistics network consists of 6 centrally coordinated Logistics Macro Areas, which handle all stages of the value chain: acceptance and collection, outbound sorting, transport, inbound sorting and delivery At the same time, this model makes it possible to have a single management system for the entire territory and to be able to adapt it to each specific situation with targeted interventions

he model's macro areas are shown below

he workforce at the end of 2023 was up compared to 31 December 2022, with a different mix of permanent and flexible staff due to the higher volumes of parcels delivered during the holiday peak period

		31 December 2023		31 December 2022
	Personnel	Unit	Personnel	Unit
Macro Areas for Logistics(*)	6	1.3	6	1.3
Sorting Centres	16	7.2	16	7.0
Operating Centres	10	1.1	10	1.0
Delivery/Logistics Centres (**)	1,340	38.0	1,388	37.7
Total	1,372	47.6	1,420	46.9

All workforce figures (stable and flexible) are expressed in Full Time Equivalent in thousands.

(*) Logistics Network - Macro Areas, whilst coinciding geographically with the Post Office Network - Macro Areas, from 2018 have their own, separate organisations in terms of processes and competences.

(**) Delivery staff include 32.9 thousand postmen and women and delivery supervisors (31.6 at 31 December 2022).

ARC L LOG C WORK AC V

Larger or non-carriable parcels and express courier products are delivered via the courier network (served by the subsidiaries DA xpress Courier, MLK Deliveries and exive), while the carriable parcels follow the flow of the postal network he logistics flow is shown below

H AL H LOG C AC V

Annual Report 2023

With the acquisition of lurima in the second quarter of 2022, oste taliane entered the field of drug logistics, enhancing computerisation and tracking systems for storage, distribution and continuous monitoring of activities he use of an advanced information application ( harmatools), as well as equipment, technologies and tools, allow real-time monitoring of the vehicles, the material transported, the correct transport conditions and the integrity of the data, guaranteeing high levels of quality and reliability of deliveries More specifically, lurima manages the following macro-categories of goods on behalf of public and private Local Health Authorities and Hospitals: pharmaceuticals, medical devices, office supplies and other health and non-health products

he logistics flow starts with the storage phase, in which the acceptance and conformity check of goods delivered by customers at lurima's warehouses takes place, with the support of harmatools he hospital departments and local area facilities (A L - Local Health Authorities) or R As (unitary union workplace structures) transmit the orders, initiating the picking phase of the stored goods, which ends with the checking of fittings and billing he products are loaded onto vehicles to be delivered to community facilities and hospitals Within the hospitals, internal distribution to the wards takes place, also thanks to lurima's staff and, in some cases, the company also provides innovative hardware and software for managing ward logistics (micrologistics)

he activity of transporting biological material consists of collecting the biological samples15F ¹⁶ at the collection centres and transporting them to the analysis laboratories

GRA D LOG C AC V

n line with the strategic objective of transforming itself into an all-round logistics operator, oste taliane has started to contend with the challenges of the integrated logistics market since the Covid-19 pandemic, both through the support provided to the organisational structures (now the Ministry of Health), and through the recently established long-term contractual relationships with players belonging to different segments (mainly mass market and telephony) hese agreements have enabled the Group to build a solid technological base to guarantee typical warehousing operations (warehouse management - goods receipt- picking16F 17 - product preparation - shipping) and to complement these solutions with typical express courier services, such as home or shop delivery n this respect, the first major orders won in 2023 for the complete logistics management17F ¹⁸ paved the way at the end of the year for new customer contracts

¹⁶ n addition to biological samples, blood components, biological material and surgical instruments

¹⁷ Warehouse picking is the activity of picking, sorting and distributing material from one loading unit to several others his activity is carried out with each grouping of materials in order to process and dispatch them

¹⁸ M and Acqua& apone

More specifically, the process of ntegrated Logistics starts with the receipt of the goods transported from the customer to the DA warehouse, as well as their control and storage

his phase is triggered by the receipt of the customer's order by the DA warehouse computer system, with detailed information on quantity, processing required and destination information his is followed by product picking, preparation/packing and the start of outbound operations (leaving the warehouse) Having reached this stage, the product can follow two flows: the courier flow, with delivery to the customer's home or post office; the dedicated network flow, which, depending on the specific nature of the product, travels via a dedicated network, bypassing the sorting hubs and delivering the parcel directly to the customer's point of sale/operating unit Value-added services on technology products, including staging (configuration), testing, repairs, etc , complete the offer

4 5 1 4 D G AL FRA RUC UR A D R MO CO AC O - W B, A A D CO AC C R

o support digitalisation, a technology engine based on hybrid cloud , open A and exponential technologies18F 19 has been implemented and applied to all the Group's activities and infrastructures he Group has implemented a programme of "digital transformation" of all its service and offer models in order to guarantee its customers full digital and omnichannel contact experiences his programme has accelerated significantly since 2021, in view of the effects of the current health emergency, in order to make the Group's products fully accessible to customers in completely safe conditions and continues to represent a strategic priority

he Group's Digital Properties are as follows:

poste.it website: oste it is the Group's consumer and business portal, where the range of services offered to customers is available he portal also allows customers to consult and manage the products in their possession

¹⁹ xponential technologies are those technologies that rapidly accelerate and shape major industries and all aspects of everyday life Key exponential technologies include Artificial ntelligence and Data cience, nternet of hings, Virtual & Augmented Reality

PostePay app: app for purchasing and managing ostepay payment cards, telco products and the nergy offer; payments can also be made via the app on the move

BancoPosta app: app to purchase and manage the Group's financial/insurance offer on the move: accounts, postal savings and insurance policies

Poste Italiane app (formerly Ufficio Postale app): in 2023, a profound transformation process was initiated that will see it become the only oste taliane app and that will make it possible to locate the most convenient ost Office and book an appointment, reducing wait times, check the status of a delivery, book a collection at the ost Office or send parcels or mail he app has been supplemented with new features such as a simplified booking model, a new profile and notice board section, a financial section for managing accounts and cards, card-less payments and withdrawals, and will gradually be completed with all the functions and services of oste taliane and the Group companies

PosteID app: oste taliane's Digital dentity app ( D - istema ubblico d' dentità Digitale - ublic Digital dentity ystem )

n 2023, the Group worked to strengthen the digital sales channel, expanding the range of products and services that can be purchased directly through the digital properties

4 5 1 5 H RD- AR Y HY CAL WORK

hird-party networks play a crucial role in the Group's omnichannel strategy hey have been strengthened to provide oste taliane customers with a valid alternative to the post offices for access to transactional services he objective is to create a platform for the integration of the Group's products with new third-party distribution channels and to use third-party services within the Group's commercial offerings oste taliane contracted an extensive network of contact points, which was further strengthened during the year 2022 with the acquisition of L , and possesses roughly 51 thousand contact points at 31 December 2023

he acquisition of L , which took place in eptember 2022, made it possible to increase the operations of the omnichannel platform; in particular, the volume of business on third-party networks was expanded with the acquisition of L thanks to the entry into the Group's perimeter of transactions carried out on L points relating to products also not belonging to the oste taliane Group's offer

Points for accepting and collecting parcels of the Punto Poste Network >15,700

n particular, the oste Group's operations in the third-party network channel aim to achieve the following objectives:

• ❖ integrate and develop the commercial offer on third-party networks (e g telephone top-ups of other operators and other services) Following the acquisition of L , average daily transactions increased to around 1 million in 2023 (of which L accounts 80%, both with oste Group products and others);
• ❖ extend the network of points of sale, represented both by the L points of sale (around 45 thousand points between tobacconists, Horeca points and newsagents) and the unto oste network19F ²⁰, DO&GDO and service stations his objective will also be pursued through the development of the recent partnership with DHL and the strengthening of the large-scale retail and petrol channels, which aim to expand the network of collect points and lockers in the next two years During 2023, the unto oste network expanded by around 600 new points and includes more than 15,700 contact points at 31 December 2023 with more than 25 million deliveries and parcel acceptances in 2023 (+49% compared to 2022)

4 5 2 MA L, ARC L A D D R BU O RA G C BU U

MACRO CO OM C V RO M

he global economy grew at a moderate pace in 2023, continuing the normalisation process initiated after the shocks experienced in recent years he Covid-19 pandemic crisis and later the Russian invasion of Ukraine had created supplyside imbalances in the goods, raw materials and labour markets At the same time, extremely expansive monetary and fiscal policies had supported demand during the pandemic crisis An inflationary surge ensued, forcing the central banks in many countries to initiate monetary tightening comparable to that of the 1980s Monetary tightening has impacted global growth, which nevertheless remains resilient thanks to the contribution of emerging economies and, among advanced economies, especially the United tates

²⁰ he unto oste network consists of service points (businesses) that offer parcel pick-up and delivery services

According to the O CD report of February 2024²¹ , the global economy grew by 3 1% in 2023 and world GD is expected to slow to +2 9% in 2024

he phase of raising reference interest rates by the Federal Reserve and the CB should essentially be over here continues to be significant uncertainty in the international scenario, however, and new price increases cannot be ruled out if the cost of energy again becomes a risk factor, also affected by geopolitical tensions in the Middle ast²²

n the Euro area, the level of GD in the fourth quarter of 2023 was almost unchanged compared to the previous quarter, still stagnating2F 23 , held back by both domestic and foreign demand Widespread signs of weakness concerned demand components: consumer confidence declined slightly in the last quarter of 2023, due to more negative expectations about the general economic situation Although employment in the area as a whole continued to grow in the third quarter (0 2% compared to the previous quarter) and the unemployment rate remained stable at 6 5%, the most recent forward-looking indicators weakened in the second half of the year According to the urosystem's expert projections published in December 2023, the area's output will accelerate to 0 8% in 2024 (from the 0 6% projected for 2023) and to 1 5% in 2025

Regarding inflationary dynamics, in urope, the indices net of the most volatile components continued to fall: the CB core index (net of energy and fresh food) in December showed year-on-year growth of 3 9%, down from 4 2% in the previous month23F ²⁴ According to urosystem estimates, disinflation will also continue in 2024: consumer price dynamics in the area will decline to 2 7% in 2024, reaching 2 1% from the third quarter of 2025

n Italy, after the significant volatility observed in the first part of the year, GD 24F ²⁵ grew slightly in the third quarter thanks to an increase in household consumption, sustained by job creation, and in the fourth quarter GD increased by 0 6% compared to the fourth quarter of 202225F ²⁶ Manufacturing activity declined again at the end of the year in connection with the weak economic situation of the main trading partners and the continuing difficulties in energy-intensive industrial production, which was affected by electricity and gas prices that were still high by historical comparison On the demand side, the substantial resilience of consumption was countered by a decline in investments, which was held back by tightening financing conditions n December, the ta-coin indicator26F ²⁷ remained negative27F ²⁸, confirming the underlying weakness of GD On an annual basis, GD growth was 0 9%28F ²⁹ in real terms On the domestic demand side in 2023 there was a 4 7% increase in gross fixed investments and a 1 2% increase in domestic final consumption in terms of volume With regard to foreign flows, imports of goods and services fell by 0 5% and exports grew by 0 2%

he purchasing power of households, after the fall in the fourth quarter of 2022, is firmly on the rise he same dynamic was observed for the propensity to save, which, however, continues to remain below pre-Covid-19 levels29F ³⁰ Labour market conditions remain robust n December 2023, compared to the previous month, the number of employed and inactive persons increased, while the number of unemployed persons decreased, bringing the unemployment rate to 7 2%

n 2023, on average, inflation measured with the Harmonised ndex of Consumer rices (H C ) fell to +5 9%, (+8 7% in 2022), gradually decreasing to +0 5% in December 2023 compared to the same month

²¹ CB - Macroeconomic projections December 2023 www ecb europa eu/pub/projections/html/index en html

²² A - Monthly report on the performance of the talian economy - ovember/December 2023

²³ Bank of taly - conomic Bulletin no 1/2024

²⁴ A - he outlook for the talian economy in 2023-2024

²⁵ n the fourth quarter of 2023, the talian economy grew by 0 2% compared to the previous quarter and by 0 5% compared to the fourth quarter of 2022 his result, whose provisional nature should be emphasised, follows the slight increase in the third quarter (+0 1%) ource: A - reliminary GD stimate - Fourth Quarter 2023, 30 January 2024

²⁶ ource: A - Quarterly economic accounts - Q4 2023, 5 March 2024

²⁷ A cyclical indicator of the talian economy that provides a real-time monthly estimate of the trend-based evolution of economic activity using information from a set of variables of both a quantitative (industrial production, inflation, retail sales, trade flows, stock indices) and qualitative nature (household and business confidence, M indicators)

²⁸ www bancaditalia it/pubblicazioni/economia-italiana-in-breve/2024/eib_Gennaio_2024_it pdf

²⁹ ource: A - GD and A debt - Years 2021-2023, 1 March 2024

³⁰ https://www istat it/it/archivio/292938/en

in 2022 ince October, price growth in taly has been lower than the urozone average

he ratio of general government debt to GD improved compared to 2022, with the tax burden remaining unchanged he reduction in interest expenditure is reflected in an improvement of the primary balance

he postal services market is going through a period of radical change, primarily linked to the digital transformation, which has influenced the volume of letters and parcels in circulation he continuing structural decline in traditional mail volumes, replaced by digital forms of communication (e-mail, instant messaging, etc ), is accompanied by an increase in the volume of parcels sent

n particular, for the mail segment, the structural downturn in the market continued in 2022 and there was a significant decrease in shipments (-5 2% compared to 2021), as an inevitable consequence of digitisation processes and the transition from physical to electronic forms of communication(e-substitution) n 2023, the decline in market volumes is confirmed (- 5% compared to 2022), although slowing down compared to the pre-pandemic period, against substantial stability in value (+0 03% compared to 2022)30F 31

he parcel sector, after its exponential increase in the pandemic years, experienced a period of uncertainty in 2022 that did not, however, affect the value of the market

he effects that conditioned the slowdown of the growth trend recorded in 2022 can be summarised as the generalised increase in costs with the consequent decrease in consumer purchasing power, and the lower propensity for private purchases (including on-line)

For the year 202231F ³², the market value was higher than in 2021, but still below pre-pandemic levels

n 2023, the value of the parcel market is expected to grow, mainly due to the positive trend in e-commerce According to the latest estimates32F ³³ for the current year, on-line product purchases are showing signs of recovery with a value of €35 billion, up 8% compared to 2022 (but largely suffering from the effects of inflation) and with annual growth in absolute terms returning to the standard level of the pre-pandemic period

Beauty is the most dynamic sector in 2023 with a higher annual growth rate in terms of value (+11%) than the average rate of product e-commerce purchases; Computers & lectronics and ublishing show an increase in value in line with the average (+8%), while the growth in purchases of Clothing and Furnishing & Home Living is positive but more contained (+7%); Food & Grocery, which in 2022 was the most dynamic sector with an annual trend of +15% shows a slight contraction (-0 5%) in 2023

he logistics market in taly is seeing steady growth in the outsourcing of logistics services by industrial and commercial operators to specialised entities (outsourcers) capable of covering the entire value chain

n particular, the market for ntegrated Logistics ervices in 20213F ³⁴ was worth around €12 billion, up 16% on the previous year, thanks in part to the increase in international transport flows, which has resumed at a faster pace than in the prepandemic years: growth of +7% is estimated for 202234F ³⁵ and +5% for 2023 Further growth is expected in the future, albeit at a more moderate pace

he market, although very competitive, is relatively unconcentrated However, some concentration phenomena have taken hold, typically stimulated by major industrial players seeking integration synergies between different stages of the supply chain

R GULA ORY CO X A D VOLU O OF H R GULA ORY C AR O

³¹ nternal calculations based on AGCom data (quarterly observatories and annual report 2023) and the latest available financial statements of companies operating in the postal sector, including oste taliane

³² nternal calculations on Cerved Databank data

³³ ource: olitecnico di Milano, B2C eCommerce Observatory - October 2023

³⁴ ource: olimi Contract Logistics Observatory - 2023 dition - Reference to the Logistics Operators Market

³⁵ ource: nternal estimate on drivers - olimi Contract Logistics Observatory - 2023 dition, Cerved Operatori Logistici - December 2023

Expense of the Universal Postal Service

On 30 December 2019, oste taliane and the Ministry of conomic Development signed the Contratto di rogramma ( ervice Contract) for the years 2020-2024; it is effective from 1 January 2020 to 31 December 2024

On 1 December 2020, the uropean Commission approved the compensation for public service obligations provided for in the 2020-2024 ervice Contract in the amount of €262 million per year he compensation system for the public service obligations undertaken by the Company was deemed to be fully compliant with the applicable U rules on tate aid

he Regional Administrative Court, in ruling no 11416/2022 published on 5 eptember 2022, partially upheld the appeal on the verification of the cost for the years 2011-201235F 36 , with reference to the non-activation of the compensation fund for the year 2011 oste taliane and AGCom appealed the Regional Administrative Court ruling to the Council of tate and the hearing on the merits was held 18 May 2023 oste taliane, AGCom and A C A ( talian Association of nternational Air Couriers) lodged separate appeals with the Council of tate against the Regional Administrative Court ruling he appeal judgements were joined By ruling no 9021 of 17 October 2023, the Council of tate annulled the first instance ruling for breach of cross-examination oste taliane promptly resumed the case before the Lazio Regional Administrative Court, supplementing the cross-examination by public notice he setting of the hearing is awaited

With AGCom Resolution 28/23/CO , published on 24 February 2023, the Authority initiated the verification procedure for calculating the net cost of the universal postal service for the years 2020 and 2021 With AGCom Resolution 322/23/CO , published on 22 December 2023, the Authority initiated the public consultation and oste taliane provided its comments within the established deadline

On 14 March 2024, AGCom Resolution 62/24/CO was published, concluding the procedure to verify the net cost of the universal postal service incurred by oste taliane for the years 2020 and 2021 n particular, the cost of the universal postal service for these years has been quantified at €585 and €480 million respectively he Authority also established that the universal service cost for the years 2020 and 2021 is inequitable and that, for the same years, unlike what was established in previous years, the necessary proceedings will be initiated for the assessment of the feed-in to the Compensation Fund referred to in article 10 of Legislative Decree no 261/1999

Publisher tariff subsidies

Law Decree no 162 of 30 December 2019 - as converted by Law no 8 of 28 February 2020 - ordered that reimbursements of publisher tariff subsidies to oste taliane continue "for a duration equal to that of the universal postal service engagement" (i e until April 2026) he application of the regulation is subject to approval by the uropean Commission

n July 2023, the procedure was initiated for notification of the ervice of General conomic nterest ( G ) to the uropean Commission for the period 2020-2026, currently being finalised

³⁶AGCom Resolution 412/14/CO regarding "Assessment of the net cost of the universal postal service for 2011 and 2012" was published on 31 July 2014 n addition to acknowledging that the cost is unfair, the Resolution quantified the cost of providing the Universal ostal ervice in 2011 and 2012, respectively, as €381 million and €327 million for fees originally recognised by oste taliane for €357 and €350 million respectively he Authority also ruled that no Compensation Fund was established for the year 2011 oste taliane has appealed this measure to the Lazio Regional Administrative Court on 13 ovember 2014

he 2022 Budget Law (Law no 234 of 30 December 2021) defined the allocations for the years 2022, 2023 and 2024, amounting to €52 5 million per year

he 2023 Budget Law (Law no 197 of 30 December 2022) stipulated that the reimbursement of publishing postal subsidies would be made through the resources of the Fund for luralism and nnovation in nformation o this end, the Fund was supplemented with the amount of €75 9 million for the year 2023 and €55 million as of 2024, instead of the amounts provided for in the previous Budget Law

AGCom - the Italian Communications Authority - Tariff Manoeuvre

With AGCom Resolution 454/22/CO of 30 December 2022, the new universal basic tariffs of the subsidised publishing products included in the Universal ervice were defined he Resolution provided for a gradual increase in basic tariffs as of 1 eptember 2022, with further increases as from 1 January 2024, 2025 and 2026, with no impact on the subsidised tariffs paid by senders and with a consequent increase in the compensation received by oste taliane per item sent at the subsidised tariff

With AGCom Resolution 171/22/CO "Final measure for the analysis of the market for mail delivery services and determination of the maximum tariffs for universal postal services - assessment of the level of competition and definition of regulatory remedies" of 6 June 2022, the new tariffs for the Universal ervice were defined; the Resolution accepts most of the proposals formulated by the Company regarding tariff variations, including the proposal to eliminate the ban on price increases up to 2024 proposed by AGCom during the public consultation; further future variations may therefore be proposed to the Authority he new tariffs entered into force progressively as from 27 June 2022

With Resolution 29/23/CO , published on 14 February 2023, the Authority decided to initiate a further procedure for the determination of new maximum tariffs for universal postal services and with Resolution 95/23/CO of 2 May 2023, it initiated the public consultation lasting 30 days; oste taliane submitted its comments for public consultation On 27 June 2023, with Resolution 160/23/CO , the new universal service tariffs were defined, which oste taliane implemented in two stages: the first in force from 24 July 2023 and the second from 18 December 2023

Annual Report 2023

AGCom - the Italian Communications Authority - Access Obligations With Resolution 171/22/CO , AGCom amended and supplemented the access obligations defined by the AGCM in the context of the acquisition of exive With AGCom Resolution 30/23/CO , published on 22 February 2023, the Authority approved oste taliane's offers for wholesale access services

n compliance with regulatory requirements, oste taliane published the access offers on its website on 24 March 2023 hese offers came into force on 1 May 2023 At the Authority's request, on 31 July 2023, oste taliane published its proposed changes to the access offers for the year 2024

With AGCom Resolution 235/23/Cons of 27 eptember 2023, the approval and public consultation procedure concerning oste taliane offers of wholesale access services for the year 2024 was initiated, pursuant to Resolution no 171/22/CO

With Resolution 302/23/CO published on 15 December 2023, the Authority accepted all of the increases in postage rates requested by oste taliane for all wholesale access service offers for the year 2024 roposals for increases applicable in the case of failure to achieve specific minimum volumes and non-compliant mailings were only partially accepted he offers, thus amended, have been published on oste taliane's website and are effective as of 1 January 2024, with effects also concerning those already contracted

AGCom - the	With Resolution 269/23/CO of 22 ovember 2023, AGcom initiated the procedure and
Italian	public consultation on the legal and economic conditions for returning mail entrusted to a
	postal operator and found in the networks of other postal operators
Communications	With Resolution 45/24/CO , the Authority approved the new conditions of the return
Authority -	service, introducing the following changes (i) frequency of notification of retrievals
Items from other	extended to 15 days, instead of the current 7 days; (ii) deferred payment of the service,
operators found in	subject to verification of the returned items; (iii) in the event of non-collection, return of
the Poste Italiane	items in a forced manner by sending them to the operator's premises; (iv) the obligation to
network	affix appropriate instructions on the mailboxes of all operators on the items allowed, both
	in written and graphic form
	On 19 eptember 2022, AGCom initiated, with Resolution 309/22/CO , the preliminary
Replicability of	proceedings relating to the revision of the replicability test, i e the test that oste taliane
offers	is required to carry out before submitting all mail offers (submitted in public and private
	tenders) worth more than €500,000 and to notify the Authority within the next 30 days,
	demonstrating that the Company's offer is "replicable" by a hypothetical efficient
	competitor

the proceedings on the updating of the criteria for verifying the replicability of oste taliane's offers by extending the perimeter of the offers subject to verification from €500,000 per year to €500,000 in total and by including the verification of offers relating to judicial documents he new provisions entered into force 30 days after the date of publication

Digital notification of PA documents

New platform

Law Decree no 76 of 16 July 2020 implifications), converted into Law no 120 of 11 eptember 2020, by means of Article 26, as amended, regulates the implementation of the platform for the digital notification of public administration acts he operator of the platform will be the company ago A, which may entrust its implementation, in whole or in part, to oste taliane as Universal ervice rovider

he technical and operational modalities for the operation of the platform were defined by Decree no 58 of 8 February 2022 of the Ministry for echnological nnovation and Digital ransition, published in Official Journal no 130 of 6 June 2022

he costs, criteria and modalities for the distribution and reimbursement of the costs for the service of documents via the platform referred to in Art 26, paragraph 14 of Law Decree no 76 of 16 July 2020 were identified by the Decree of 30 May 2022 of the Ministry for echnological nnovation and Digital ransition, published in Official Journal General eries no 180 of 3 August 2022 he decree states that the amount of the costs of notification for the addressee of the document served is set at €2 00 for each notification effected via the platform A portion of the amount, to be negotiated with ago a, will be paid to oste taliane as the platform provider here is also an additional charge of €1 40 to oste taliane as universal service provider in cases of delivery of the hard copy of the documents to be served

he Agreement with ago A governing the scope of services, responsibilities and economic remuneration for the developments and services required from oste taliane for the implementation of the latform is currently being finalised n the meantime, the platform was made operational by ago A with the currently available functionalities

AGCM - the Italian Antitrust Authority-Obligations of Nexive Group Srl

AGCom - the Italian Communications Authority -

Revision of special licence regulation

As part of the acquisition of exive, finalised in January 2021, in December 2023, oste taliane sent its annual report on compliance with the behavioural measures prescribed by the AGCM

n August 2022, AGCom initiated proceedings for the revision of Resolution 77/18/CO on the issuance of licences to perform the service of notification of judicial documents and traffic violations by post On 13 April 2023, the Authority published the final Resolution on the amendments to the Regulation36F ³⁷ confirming the substantial structure of the Regulation in its qualifying features, although it made some changes aimed at fostering competition in the notification market (e g the abolition of the exclusivity clause between the parent operator and operators forming part of its permanent organisation, the reduction of the minimum number of employees and training hours) he Resolution confirmed the prohibition of reposting, i e the entrusting of volumes of judicial documents to oste taliane by the successful bidders, and maintained the division of licences into two types (one all-inclusive for judicial documents and traffic violations and another for traffic violations only) he specifications of the procedures for issuing special individual licences with the new requirements set out in the AGCom Resolution were also published on the website of the Ministry of nterprise and Made in taly

³⁷ Regulations on the issuance of licences to carry out the service of judicial documents and related communications by post (Law no 890 of 20 ovember 1982) and traffic violations (Article 201 of Legislative Decree no no 285 of 30 April 1992)

Annual Report 2023

AGCom - the Italian Communications Authority -

Postal Compensation Regulation

With Resolution 323/23/CO of 20 December 2023, AGCom issued, following public consultation among stakeholders, a Compensation Regulation for the protection of users in the postal sector he Regulation applies to all providers and users of the postal service and defines the criteria for calculating the compensation to be applied by the Authority in proceedings to settle disputes between postal operators and users he Regulation entered into force on 28 December 2023

AGCom - the Italian Communications Authority - Mailboxes

With Resolution no 308/22/CO of 27 eptember 2022, AGCom redefined the criteria for the distribution of mailboxes, adopting, in particular, that of the distance to the nearest box by percentage of the resident population n relation to the mplementation lan transmitted by oste taliane on 29 ovember 2022, and to the subsequent discussions that took place, in a report dated 30 March 2023 the Authority stated that it had examined the elements transmitted and taken note of the timetable and the time-frame illustrated by the Company to fully implement the provisions of the aforementioned resolution (within the next two years) he Company is required to send a report on the progressive implementation of the lan every six months he first half-year report was sent on 6 ovember 2023

AGCom - the Italian Communications Authority

Licences for offering postal services to the public

O H R FORMA O

Energy supply distribution through the post office network

On 10 January 2024, the Authority initiated proceedings (no 2/24/CO ) concerning the revision of the regulation on licences for the public offering of postal services he time limit for the proceedings is set at 180 days

With a measure adopted at the meeting of 30 January 2024 and notified to oste taliane on 7 February 2024, AGCM initiated an investigation procedure against the Company in order to ascertain the existence of a possible breach of Article 8, paragraph 2-quater, of Law no 287/1990 At the same time, the Authority initiated proceedings to verify the actual existence of the requirements for the adoption of precautionary measures pursuant to Article 14-bis of the same law pecifically, the Authority observed that oste taliane, through its subsidiary oste ay pA, is active in the electricity and gas supply sector, and allegedly denied two of the latter's competing companies access, pursuant to Article 8, paragraph 2-quater of Law no 287/90, to the resources made available to oste ay, of which it has exclusive use in connection with its activities within the perimeter of the postal universal service he Authority also ordered inspections, which were held on 7 February 2024, and set the conclusion of the proceedings at 19 July 2024, granting oste a period of seven days to file pleadings and documents relating to the precautionary proceedings On 14 February 2024, the Company filed its memorandum in the precautionary proceedings, contesting the Authority's approach and, in particular, the disapplication of the provisions of Article 1, paragraph 6 of Law Decree

no 59/2021, as amended and supplemented, exempting oste from the application of Article 8, paragraph 2-quater, of Law no 287/1990 until 31 December 2026

IRES Credit

On 5 July 2023, the ruling of the Court of Cassation in the case pursuant to Law Decree no 201/2011 was published, in which the most relevant grounds of oste taliane's appeal were upheld concerning the starting date of the accrual of interest on the R receivable arising from the failure to deduct personnel expenses for RA purposes As a result of this ruling, the case will have to be resumed before the ax Court of econd nstance to settle the amount of interest actually due to the Group he judgement concerning Law Decree no 185/2008 is still pending before the upreme Court of Cassation For further details, please refer to the chapter " roceedings pending and principal relations with the Authorities" and note A9 - Other receivables and assets of the consolidated financial statements, in the section " oste taliane's Financial tatements"

The Italian Data Protection Authority

n August 2023, the continuous monitoring units detected anomalies on the systems of the subsidiary ostel pA and identified an event of compromise of some Domain Controllers, made possible through the use of various malware and the activation of a malicious code used to encrypt computers (ransomware) he execution of the ransomware, claimed by a cyber criminal group, disrupted the operation of some servers and several workstations spread across the country Based on the provisions of the "Data Breach Management" procedure governing the activities of detecting, notifying and communicating personal data breaches in accordance with the provisions of U Regulation 2016/679 (GD R), the GD R eam was convened and, within the timeframe set out in Articles 33 and 34 of the GD R, the Company notified the rivacy Guarantor and all relevant stakeholders

On 15 December 2023, the Garante per la rotezione dei Dati ersonali (G D ), considering that the elements acquired in the course of the preliminary investigations, initiated following the notification of the Data Breach, may constitute one or more of the violations indicated in Article 83 of the GD R, notified the Company of the commencement of the proceedings for the adoption of the measures and sanctions referred to in said Article 83, pointing out that ostel could be subject to the sanctions provided for therein

On 12 January 2024, the Company filed its defence briefs and was heard at a hearing on 31 January 2024

At present, the conclusion of the proceedings is pending

For the main pending proceedings and relations with the Authorities, please refer to the chapter " roceedings pending and principal relations with the Authorities" in the section " oste taliane's Financial tatements"

O RA G R V W

Also in 2023, the Group continued with the process of reorganising its transport, sorting, delivery activities and improving the customer experience, in line with the long-term objectives outlined in the trategic lan, such as increasing efficiency, flexibility and quality in order to seize the opportunities arising from the development of e-commerce

he following table shows the main activities of the Mail, arcels and Distribution trategic Business Unit for the period

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

SEGMENT OPERATING REVIEW PILLAR

cities39F 40

Parcels/ Logistics

Mail

n March 2023, the partnership between MLK Deliveries pA and the company Mazzocco r l was finalised, to enable the logistics operator for controlled temperature transport37F ³⁸, in order to build a unique offer38F ³⁹ dedicated mainly to talian food and wine M s During the year, a pilot delivery chain was launched in major talian

n January 2024, the joint venture MLK Fresh was established between the two companies and the new product PosteGoFresh was launched

With a view to the continuous development of the offer and business, there was continued marketing of the new Offer of Integrated Logistics, which began in 2022 and aims to position oste taliane as a Logistics olution rovider40F ⁴¹ in the Integrated Logistics market and, since April 2023, the new Logistics Hub in Vidigulfo ( avia) has been in operation With a surface area of 62,000 sqm and 74,000 pallet spaces, it is the largest of the oste taliane's warehouses he site handles the order of an important customer who has entrusted the Group with the entire activity of storage, order picking and distribution of its products for its shops located in Central- orthern taly

At the end of July 2023, the oste taliane new offer dedicated to cancer prevention campaigns, organised by

local health authorities and hospitals in order to increase their participation, was launched on an experimental basis he initiative offers the possibility of home collection of diagnostic samples self-collected by citizens participating in screening campaigns and their return to the relevant A L laboratory

On 27 June 2023, the new universal service tariffs were defined by AGCom Resolution 160/23/CO , which came into force on 24 July 2023 On 18 December 2023, the second phase of the tariff manoeuvre for domestic and international mail and notification services came into force n particular, the price lists of services/products other than retail, within the scope of the Universal ervice, were aligned with the maximum tariffs approved by AGCom Resolution

On 5 December 2023, the new prices for wholesale access offers to the delivery network and post office network for the year 2024 (effective 1 January 2024) were defined41F 42

During 2023, prices were revised and annual volume brackets introduced for each type of P.O. box in order to improve the operational management of the service within the post office he new prices and specifications take effect on 1 January 2024

For more information, please refer to the section "Regulatory context and evolution of the regulatory scenario" of the Mail, arcels and Distribution BU

As of January 2023, the new product Atto Giudiziario Market Veloce42F ⁴³ was launched he service replicates all the features and functionalities of the Judicial Document Market (tracking, notification and reporting) with improved service levels and dedicated forms

⁴² AGCom Decision 302/23/CO

³⁸ A mode of transport that involves maintaining a constant temperature inside the vehicle - whether hot or cold - whatever the outside temperature

³⁹ he offer includes the combination of logistics assets, such as logistics distribution platforms and a temperature-controlled last mile fleet, with scheduled delivery solutions he alliance between the two companies combines the technology of MLK Deliveries, which will receive customer bookings for scheduled deliveries, with the Mazzocco cold logistics platform

⁴⁰ At 31 December 2023, the provinces where the service is active are: urin, Milan, Bergamo, Brescia, avia, Mantua, Cremona, Verona, Vicenza, adua, arma, Bologna, Modena, Reggio milia, Florence, rato, istoia, Livorno, Rome, mpoli, iacenza n early 2024, the service was also extended to the cities of Genoa and isa

⁴¹ ingle logistics provider able to offer services covering the entire customer supply chain, from warehousing to distribution to the final recipient

⁴³ Judicial Document Market Veloce is used for the notification of traffic violations and administrative acts (e g for acts relating to taxes)

ince May 2023, the Online Judicial Document has been available, through which the judicial document can be sent via the ostaonline43F ⁴⁴ solution at any time directly from customers' management software

4 5 3 F A C AL RV C RA G C BU U

MARK CO X

Financial markets

he year 2023 started with a bullish phase in the equity segment that continued throughout January due to the less aggressive policies of central banks, resulting in lower long-term rates Already in February, this bullish phase began to fade, mainly due to the more aggressive tones used by some central bankers on account of inflation, which, although declining, is still expected to remain at high levels ensions in the uropean banking sector in March were exacerbated by the financial collapse of ilicon Valley Bank, the bankruptcy of ignature Bank, and the financial crisis of Credit uisse, which was acquired by UB he swift and incisive reaction of the monetary authorities seems to have stabilised the situation, and the solid performance of the stock market was boosted by a higher risk appetite of investors, attributable to expectations of less restrictive monetary policies in the major economies

During 2023, equity markets overcame the correction recorded in August brought about by investors' concerns about the deterioration of economic growth caused by the significant rise in interest rates, registering strongly positive performances⁴⁵: the M C World index recorded growth in both developed market countries and emerging countries of 21 77% and 7 04% respectively n the United tates, the & 500 index ended the year up 24 23%, thanks mainly to technology stocks, which made the difference; in fact, the asdaq 100, the U technology index, was up 53 8% at the end of the year n 2023, the F M B recorded the best performance in urope with a growth of 28 03%

he credit market, after a start of the year characterised by a significant tightening of spreads, experienced a sharp turnaround at the beginning of March he crisis of the U regional banks and the bankruptcy of Credit uisse led to a repricing on the entire credit market, particularly for the banking sector, bringing spreads well above year-end values n the summer months, the uropean and U corporate markets suffered from both rising benchmark rates and widening spreads, of a larger magnitude on the High Yield segment, in tandem with deteriorating economic growth ince the end of October, the credit market in urope and the United tates has been moving towards a period of lowering rates, leading to important performances⁴⁶ on the value of securities at the end of the year: the nvestment Grade index achieved a positive change of 8 1% in the U , and 7 4% in urope since the beginning of the year, while the High Yield index increased by +11 2%

As regards the talian B , 2023 started with rates and spreads characterised by quite high levels (10-year B around 4 70% and B -Bund spread around 215 bps)⁴⁷ on the widening trend that had affected the latter part of 2022 However, already in the first few days of the year, the trend reversed and there was a gradual narrowing, which led to the levels of the talian 10-year B and the spread touching quarterly lows around mid-January (10-year B around 3 75% and B - Bund spread around 170 bps)⁴⁸ and then closing the first quarter with a marginal widening (10-year B around 4 1% and B -Bund spread around 185 bps)⁴⁹ n the second quarter, both the yields on the talian ten-year bond and the B -Bund spread fell further to 4 07% and 167 bps respectively on 30 June 2023⁵⁰ n the third quarter, the actions of the central

⁴⁴ he service is provided in accordance with Law no 890 of 20 ovember 1982 " otification of documents by post and communications by post connected with the notification of judicial documents"

⁴⁵ ource: Refinitiv

⁴⁶ ource: Bloomberg

⁴⁷ ource: Refinitiv ⁴⁸ ource: Refinitiv

⁴⁹ ource: Refinitiv

⁵⁰ https://www borse it/articolo/ultime-notizie/chiusura-borse-oggi-30-giugno-2023#indici-europa-e-italia

banks led to a generalised rise in yields, with the yield on the 10-year B reaching 4 8% at the end of eptember, while the B -Bund spread remained around 190 bps⁵¹

At the end of the year, the yield on the 10-year B declined substantially, compared to the same period in 2022, to 3 7%; this change was mainly due to the decline in risk-free rates in the major advanced economies, driven by expectations of a less restrictive monetary policy stance in 2024 and the decrease in uncertainty in the government bond market At the same time, the B -Bund spread also narrowed significantly, settling at 165 bps⁵², benefiting from lower interest expenses on government debt due to the prospective fall in long-term yields, as well as from the favourable ratings on talian debt issue by the major rating agencies

Below is a table that represents the precise returns expressed in percentage terms at the end of the period for B government bonds and nterest Rate waps⁵³

	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
BTP 10Y	4.72	4.10	4.07	4.78	3.70
SWAP 10Y	3.20	2.96	3.02	3.39	2.49
BTP 15Y	4.75	4.36	4.26	5.04	4.05
SWAP 15Y	3.14	2.96	2.96	3.43	2.56
BTP 30Y	4.79	4.32	4.44	5.25	4.37
SWAP 30Y	2.53	2.50	2.54	3.09	2.33

he following graph shows the trend of the 10-year B - waps spread in recent years with the values recorded up to 31 December 2023

Banking system

Based on available estimates provided by the talian Banking Association (AB )⁵⁴, at the end December 2023, customer deposits of all banks in taly, represented by deposits from resident customers (current accounts, certificates of deposit and repurchase agreements) and bonds, decreased by 1 5% on an annual basis, settling at approximately €2,028 billion (€-31 billion compared to the previous year)

⁵¹ ource: Refinitiv

⁵² ource: Bloomberg

⁵³ ource: Bloomberg

⁵⁴ ource: AB , Monthly Outlook – January 2024

his trend reflected a significant reduction in deposits from resident customers of around €71 billion (-3 8% y/y), partially offset by a recovery of around €40 billion in bond deposits (+19 1% y/y)

n December 2023, the average cost of bank funding (which includes the return on deposits, bonds and repos from households and non-financial companies) was around 1 16% (0 61% at 31 December 2022)

Bank loans to talian residents (private sector plus general government net of repos with central counterparties) amounted to approximately €1,670 billion in December 2023, a year-on-year decrease of 3 9% Loans to households and nonfinancial companies amounted to €1,296 billion, registering a negative annual change of 2 2% he decline in volumes is consistent with the slowdown in economic growth, which is depressing the demand for loans: in December 2023, the volume of loans to businesses and households fell by 2 2 % year-on-year

Asset Management

Assogestioni data show, at 31 December 202354F ⁵⁵, total assets of €2,338 billion, up 5 8% on the €2,210 billion at the end of 2022 With regard to portfolio management, assets amounted to approximately €1,095 billion, up 4 3% from €1,050 billion at 31 December 2022 With regard to Collective asset management, assets went from about €1,160 billion at the end of December 2022 to around €1,243 billion at the end December 2023

(+7 1%) With regard to open-ended investment funds alone, client assets stood at around €1,149 billion at the end December 2023, up 6 9% from roughly €1,075 billion at the end of December 2022

n terms of net inflows, the asset management industry recorded a negative balance in 2023 of approximately €49 6 billion (compared to a positive balance of €12 9 billion in 2022)

R GULA ORY CO X

Below are the main regulatory initiatives updated in 2023

Bank of Italy Circular no. 285 of 17 December 2013

On 31 August 2023, Banco osta, with reference to the 40th update⁵⁶ (of 2 ovember 2022) of the Circular, submitted a report to the Bank of taly describing the actions taken in order to comply with the regulatory changes introduced

On 30 March 2023, the Bank of taly published the 42nd update of Circular no 285 of 17 December 2013 concerning the provisions on "Covered Bank Bonds"⁵⁷; this update has no substantial impact on Banco osta's business

n December 2023, the Authority published two new updates to the Circular:

• ✓ 43rd update of 5 December 2023, which refers to "Large xposures" with reference to financial conglomerates⁵⁸ and does not have any particular impact on Banco osta;
• ✓ 44th update of 19 December 2023, which is of particular interest to Banco osta and is being

⁵⁶ he new rules mainly require banks to set up a second-level control function for the management and control of C and security risks pecific provisions have also been introduced for contracts with third parties; Banco osta has completed the updating of existing contracts and is currently reviewing the relevant internal company regulations

⁵⁵ Assogestioni, Quarterly Map, published on 20 February 2024

⁵⁷ A supervisory regime for covered bank bond (OBG) issuance programmes is established that requires prior authorisation by the Bank of taly for the launch of new issuance programmes

⁵⁸ hese amendments now allow banks that are members of financial conglomerates (financial conglomerates are groups of firms, which are active to a significant degree in the insurance and banking or investment services sectors, include at least one insurance firm and one banking or investment services firm, and are either headed up by a regulated entity or are principally engaged in activities in the financial sector) to exclude from the calculation of large exposure limits those exposures, including in the form of investments, to other entities in their conglomerate that are included in the scope of supplementary supervision in accordance with Directive 2002/87/ C (Financial Conglomerates Directive) ource: Bank of taly

verified by the relevant functions n fact, this update concerns the transposition into national law of the changes defined at uropean level regarding interest rate risk and credit spread on the banking book ( RRBB⁵⁹ and C RBB⁶⁰ respectively) pecifically, the provisions of Articles 84 and 98 of Directive 2019/878/ U (Capital Requirements Directive V - CRD V) are transposed hey relate to:

• the simplified standardised methodology for measuring interest rate risk for the banking book;
• criteria for the identification, assessment, management and mitigation of interest rate risk for the banking book;
• the criteria for assessing and monitoring credit spread risk for the banking book and the regulatory technical standards with regard to supervisory tests for outliers

Bank of Italy Other circulars on supervisory reporting On 28 ovember 2023, the Bank of taly published the 17th update of Circular no 272 of 30 July 2008, which introduces new information requirements in supervisory reporting, and the 76th update of Circular no 154 of 22 ovember 1991, which amends the supervisory reporting formats Banco osta is pressing ahead with the necessary updates

⁵⁹ he nterest Rate Risk for instruments in the Banking Book ( RRBB) is the risk arising from interest rate fluctuations over time and can affect the value of banking assets and liabilities due to differences in their interest rates and maturities

⁶⁰ he Credit pread Risk in the Banking Book (C RBB) concerns the risk related to changes in credit spreads on financial instruments held in the institutions' portfolio Credit spreads represent the difference between the yield of a financial instrument and the yield of a riskfree security with the same maturity

Delegated Regulation (EU) 2022/2360

Strong Customer Authentication (SCA) Following consultation on 5 December 2022, Commission Delegated Regulation ( U) 2022/2360 of 3 August 2022 amending Delegated Regulation ( U) 2018/389 with regard to strong customer authentication and common and secure open standards of communication was published in the Official Journal of the uropean Union

he innovations introduced concern, on the one hand, the exemption, under certain conditions, from the obligation of strong authentication ( trong Customer Authentication – CA ) of the

customer for the specific case in which access to the data takes place through an Account nformation ervice rovider⁶¹ and, on the other hand, that strong customer authentication must be renewed after 180 days from the last time the user had on-line access to information relating to payment account data and strong authentication was applied

Banco osta has finalised the appropriate adaptation activities on the CB Globe - Global Open Banking cosystem platform usable by hird arties⁶², as well as on the systems of the external provider ink with regard to the Banco osta Open service⁶³

ESG Investment Services Disclosure

With reference to G regulations in the area of investment services, Delegated Regulation ( U) 2022/1288 came into force on 1 January 2023, related to the disclosure obligations for financial operators on sustainability issues in pre-contractual/contractual documents and periodic product reports and websites

he website pages dedicated to sustainability have been further updated: by way of example, the definition of an eco-sustainable investment and the reference regulatory framework have been introduced, and the list of products offered with sustainability features has been updated to highlight that the Company, in providing the consultancy service, takes into account the main effects of the sustainability factors in line with the methodologies declared by the companies issuing the financial/insurance products

ESMA

Sustainability in product governance and internal reporting he enactment of U sustainability legislation has had an impact on the regulatory framework of MiF D , which has been amended to take sustainability factors into account in the processes concerning the provision of investment services with particular reference both to the provision of the financial advice service and the related organisational requirements for authorised intermediaries (Delegated Regulation ( U) 2017/565 hence the update by MA of the Final Report "Guidelines on certain aspects of the MiF D suitability requirements" in eptember 2022), and with reference to the product governance process (Delegated Directive ( U) 2017/593)

⁶¹ Account nformation ervice roviders (A ) are financial institutions that have been given access to information about consumers' accounts (with their explicit consent) by their banks

⁶² hird parties are the following entities provided for and regulated by the uropean D2 Directive:

A (Account nformation ervice roviders), which allow the user, the holder of online-accessible payment accounts held with several payment service providers, to obtain an aggregated view of their accounts;

the ( ayment nitiation ervice roviders) which allow, with the customer's express authorisation, a payment order to be initiated from an account that the user holds with another payment service provider;

C (Card ssuers ervice roviders) that issue payment cards settled on a payment account accessible online at another institution and verify with the latter the availability of the funds involved in the transaction

⁶³ Banco osta Open is the open banking service which allows users to obtain information, directly from the Banco osta app, on payment accounts held with other payment service providers and to place payment orders on payment accounts held with other payment service providers

With regard to the latter, the MA Final Report63F ⁶⁴ "Guidelines on MiF D product governance requirements" was published on 27 March 2023, with the aim of revising the same 2017 Guidelines in order to integrate sustainability objectives into the forecasts regarding the identification of the reference market by both producers and distributors of financial instruments and structured deposits64F ⁶⁵ he forecasts in the Final Report confirm the Group's alignment with the regulatory framework on sustainability with respect to what is being implemented with reference to the product governance process and the models used to exchange information related to product sustainability with the Group companies65F ⁶⁶ that produce investment and insurance products (producers)

MA has set the same application date (October 2023) for both Guidelines he initiatives were implemented in February 2024

Bank of Italy Revolving Credit

n April 2023, the Bank of taly published a document containing supervisory guidelines on "revolving"6F ⁶⁷ credit, a form of financing, also associated with credit cards, characterised by high flexibility of use for the customer he document contains a series of guidelines aimed at drawing the attention of intermediaries to the main problems in customer relations and thus at promoting rule-compliant and correct behaviour towards consumers "Good ractices"), making provision where necessary for the identification of adaptation plans by the end of the year Banco osta, together with the financing artners, have therefore concluded the impact analysis regarding the products falling within the scope of the aforementioned guideline and directly applicable to Banco osta as a distributor, as well as defined the appropriate actions that will be implemented once the specifications have been received from certain artners

ANAC

Guidelines on Whistleblowing n March 2023, Legislative Decree no 24 of 2023 was approved, repealing the existing national regulations on Whistleblowing, which encompasses in a single regulatory text - for the public sector and the private sector - the protection regime for individuals who report unlawful conduct of which they have become aware in a work context n July 2023, A AC published the new Guidelines67F ⁶⁸ on the protection of persons who report violations of U law and breaches of national legislation (whistleblowers) and the Regulation68F ⁶⁹ for the handling of external reports and the exercise of sanctioning powers

he internal regulations, which incorporate the changes introduced, are currently being issued by oste taliane, while the supporting tools (reporting platform) are being updated

⁶⁴ Among the important changes resulting from the new MA Guidelines are:

^- an indication of any sustainability goals with which a product is compatible;

^- identification of the target market by product cluster, rather than by individual product;

^- the determination of a compatible distribution strategy when a distributor considers that a more complex product can be distributed as part of non-advised sales;

^- the periodic review of products and the application of the principle of proportionality

⁶⁵ Deposits the return on which is linked to indicators such as indices, financial instruments, commodities or exchange rates; variable-rate deposits whose return is directly linked to an interest rate are excluded ource: Bank of taly

⁶⁶ his refers to companies belonging to the oste Vita Group and Banco osta Fondi GR

⁶⁷ Revolving credit is a form of financing usually with an indefinite maturity characterised by a high degree of flexibility of use for the customer, who can use a sum of money equivalent to the credit facility granted in one or more instalments; the amount of funds made available is restored in an amount corresponding to the instalments paid to the intermediary by way of repayment of the principal (source: https://www bancaditalia it/compiti/vigilanza/normativa/orientamenti-vigilanza/credito_revolving pdf)

⁶⁸ Resolution no 311 of 12 July 2023

Bank of Italy

Outsourcing of business functions for supervised intermediaries

On 1 June 2023, the Bank of taly published its rovision of 31 May 2023 containing instructions for reporting on the outsourcing of business functions for supervised intermediaries his report, sent by Bancoposta and oste ay in December 2023, aims to collect information69F ⁷⁰ on the outsourcing contracts of supervised intermediaries, service providers and subcontractors, and the type of functions outsourced

European Parliament and Council Consumer Code On 18 March 2023, Legislative Decree no 26 of 7 March 2023 implementing Directive ( U) 2019/2161 of the uropean arliament and of the Council of 27 ovember 2019 (amending previous Directives) for better enforcement and modernisation of Union rules on consumer protection was published; the Legislative Decree contains amendments to the text of the "Consumer Code"70F ⁷¹ he measure came into force on 2 April 2023 and the relevant Banco osta personnel participated in specific training events on these regulatory amendments

European Parliament and Council Financial service contracts concluded at a distance

On 18 December 2023, Directive ( U) 2023/2673 came into force, reforming the current rules on distance marketing of consumer financial services contracts by amending Directive 2011/83/ U and repealing Directive 2002/65/ C his Directive, in order to harmonise the legislation and ensure the same level of consumer protection at uropean level, makes changes in relation to: i) the modalities for exercising the right of withdrawal; ii) the content, modalities and timing for the provision of pre-contractual information; iii) special rules for the protection of consumers who sign financial services contracts via online interfaces; iv) the strengthening of sanctions in the event of violation of the legislation

Member tates are required to adopt the provisions needed to comply by 19 December 2025, in order for these provisions to be applicable from 19 June 2026, the date of repeal of Directive 2002/65/ C

Banco osta and oste ay are carrying out the appropriate investigations to assess the impacts of this new regulatory framework, also with the involvement of the financing artners

⁷⁰ he collection of information is functional to the analysis and monitoring of risks arising from the use of third parties for the performance of functions, services and activities of supervised intermediaries, in order to ensure the stability of the intermediaries themselves and of the banking and financial system ntermediaries are required to provide, in particular, the following information:

^- for all outsourcing agreements: signatories and users of the contracts, service providers, type and characteristics of the outsourced function, certain provisions of the contracts;

^- for services provided in cloud computing mode (i e the provision of computing resources, including storage, databases and software applications over the internet): the cloud model used and the cloud provider;

^- for agreements to outsource essential or important functions (F ) or important operating functions (FO ): the rationale for the classification as an F /FO , the assessment of the risks arising from the outsourcing, the decision-making body that decided on the outsourcing, the audits performed and planned, the assessment of the level of substitutability of the service provider, the sub-outsourcing and any subcontractors, the country of service delivery and the country of data storage

⁷¹ ew regulatory provisions are planned to strengthen consumer protection in cases of unfair terms, unfair commercial practices, unfair competition or untruthful commercial communications

European Parliament and Council Credit agreements for consumers

On 30 October 2023, Directive ( U) 2023/2225 on credit agreements for consumers was published in the Official Journal of the uropean Union, updating and repealing Directive 2008/48/ C ("CCD - Consumer Credit Directive") By establishing a common framework for the harmonisation of aspects of the laws, regulations and administrative provisions of the Member tates, the measure broadens the forms of credit covered and regulates certain aspects71F 72 he Member tates are required to adopt the provisions necessary to comply with the Directive no later than 20 ovember 2025; the Directive will apply to agreements concluded as from 20 ovember 2026, without prejudice to the application of the previous provisions of Directive 2008/48/ C to credit agreements in place on 20 ovember 2026 and until their termination Banco osta is carrying out the appropriate investigations to assess the impacts of this new regulatory framework, with the involvement of the financing artners

ESMA Guidelines on certain aspects of the MiFID II remuneration requirements

As of October 2023, the MA Guidelines setting out operational guidance on intermediary remuneration policies and practices valid under the MiF D conduct of business rules and conflict of interest regime requirements came into force n the aforementioned guidelines, MA draws the attention of intermediaries to the need to orient their conduct towards criteria aimed at pursuing the best interests of clients Banco osta, while confirming the solutions and safeguards in place with respect to the issues under consideration, has initiated a round-table work group aimed at addressing some specific activities to strengthen existing controls and regulations

2024 Budget Law Due diligence

Law no 213 of 30 December 2023 2024 Budget Law) amended art 17, paragraph 6 of Legislative Decree no 231/2007, as amended and supplemented, providing for the exclusion of the due diligence obligations in the case of occasional cash withdrawals within the daily limit of €250 Analyses were launched at Group level to assess the impact of this simplification in order to change the current operational processes for withdrawals from payment accounts at

O H R FORMA O

Bank of Italy

Following the initiative, carried out at the turn of the first half of 2023, to cancel cheques belonging to the old materiality (i e lacking the new anti-fraud security requirements indicated by the AB in circular no 21 of 12 June 2014), contacts were entered into with the Bank of taly, as a result of reports of unpaid cheques complained of by some intermediaries, which led to specific and additional (with respect to what had already been implemented prior to the initiative itself) customer contact campaigns aimed at returning the materiality to the post office and in any case discouraging its use

L ay affiliated merchants (service started by this intermediary in eptember 2023)

On 20 July 2022, the Bank of taly provided to oste taliane pA - Banco osta RFC and oste ay a communication concerning the manner in which the funds received by oste ay in respect of the issuance of electronic money should be managed t should be noted that

⁷² he main aspects concern: (i) pre-contractual information to be provided to customers prior to the conclusion of the credit agreement, reinforcing the relevant marketing practices; (ii) the assessment of the consumer's creditworthiness and access to databases by lenders; (iii) the form and content of agreements; (iv) rules of conduct in the granting of credit, and knowledge and competence requirements for credit intermediaries

the upervisory rovisions for M provide that such funding may be deposited with a bank authorised to operate in taly, invested in qualified debt securities or particular units of harmonised mutual funds ince the creation of oste ay, these sums are deposited in a postal current account (protection account) and contribute to the funds from private customers of Bancoposta RFC, which are invested in euro area government bonds n this regard, the Authority initiated discussions with Banco osta and oste ay in 2021, in view of the fact that Banco osta was not deemed to be an entity that could be assimilated to the concept of "credit institution" under the relevant uropean legislation n the face of a proposed alternative approach, aimed at equating the deposit with Banco osta of the sums collected by oste ay with a direct investment in qualified debt securities, in the aforementioned communication the Authority asked Banco osta and oste ay for further observations, aimed at identifying an operational solution that would allow full alignment with the relevant regulatory provisions Upon completion of the further investigations requested, a transitional solution was identified, also on the basis of the discussions with the Authority his solution was represented to the Bank of taly in a communication sent jointly by oste ay and Banco osta on 29 March 2023 Consistent with this solution, a draft of the revolving pledge agreement was prepared and sent to the Bank of taly on 4 August 2023, supported also by the opinion of an external law firm

he Bank of taly, from 14 March 2022 to 15 July 2022, conducted an inspection at oste taliane pA – Banco osta RFC, on profitability and the business model, governance and control systems, interest rate risk management methods including related internal modelling, new tax credit business and associated risks For further details, please refer to the chapter " roceedings pending and principal relations with the Authorities" in the section " oste taliane's Financial tatements"

CONSOB

On 21 March 2023, CO OB launched a thematic investigation into the processes and procedures adopted, or under development, with regard to G he reply was provided on 19 May 2023

On 24 July 2023, CO OB sent a request for specific insights into: i) customer profiling, ii) concentration control, iii) transparency measures on ex post costs and charges, and iv) how to identify off-premises personnel On 7 eptember 2023, feedback was provided within the deadline requested by the Authority On 29 January 2024, CO OB requested a single response on the different areas of investigation including: i) further update on the issues covered by the above-mentioned response of 7 eptember 2023, ii) new Customer ervice and ortfolio Model he relevant feedback was provided on 23 February 2024

Federconsumatori, with a writ of summons dated 14 May 2021, initiated a class action against oste taliane pursuant to article 140-bis of the Consumer Code, before the Court of Rome he value of the dispute to date is approximately €8 5 thousand

Federconsumatori

By means of the summons in question, Federconsumatori contests that the capitalisation of interest on 30-year interest-bearing postal certificates (marked with the "Q" series, issued by Cassa Depositi e restiti from 1986 to 1995, pursuant to Ministerial Decree 13 June 1986 by the Minister of reasury, which were subsequently transferred to the Ministry of conomy and Finance, pursuant to the M F Decree of 5 December 2003) is carried out annually net of

withholding tax (now substitute tax), rather than gross, with the effect of recognising to savers a lower return than that allegedly due

On 27 July 2021, oste taliane appeared before the court, objecting, on a preliminary basis, to the inadmissibility of the class action, on a number of preliminary grounds, as well as to the fact that the plaintiffs' and potential members' claims were time-barred, and contested the merits of the proposed claim

he Court of Rome, in an order dated 11 January 2022, held that the request submitted by Federconsumatori was manifestly unfounded, recognising, inter alia, the lack of passive legitimacy of oste taliane

Federconsumatori appealed the order of the Court of Rome, and the Court of Appeal deferred the hearing for closing arguments to 22 May 2024

For the main pending proceedings and further relations with the Authorities, please refer to the chapter " roceedings pending and principal relations with the Authorities" in the section " oste taliane's Financial tatements"

O RA G R V W

he following table shows the main activities of the Financial ervices trategic Business Unit during the period

SEGMENT	OPERATING REVIEW	PILLAR
Postal savings	n 2023, a number of offers were launched reserved for Libretto mart holders, with Supersmart Offers 73 into special promotions dedicated to holders who bring new liquidity72F oste 2023: Record taliane; the total volume collected through these promotions, amounting to around inflows €8 billion, represents the best annual result ever achieved on products in the segment dedicated to this target group
	Moreover, with regard to the ostal avings Bonds segment, during the year Cassa Depositi e restiti made changes by increasing the rates of return on most of the products in its range
Current accounts	74 of the BancoPosta Business Link current account was launched via the he Off- remises Offering73F ingle 75 with the aim of consolidating its position in the market of reference and fostering the evolution of the Front nd74F service model of the commercial channels
Asset management	76 fund range was expanded with the launch of the n February 2023, the Universo75F Fondo BancoPosta Universo Tematico his fund aims for growth by investing at least 50% of the capital in the shares of companies operating in so-called megatrends, i e those that will drive future changes and in which the largest investments will be concentrated at global level, such as, for example, ecology, technological innovation, health As part of the "Universo line" funds, the Bancoposta Universo Start fund was launched in October: a short-term euro government bond fund that targets moderate growth in the value of the invested capital

⁷³ ew liquidity means all sums contributed exclusively by bank transfer, bank and bank drafts, salaries and pensions, and credited to the Libretto mart, to current accounts and/or postal savings books bearing the same header as the Libretto mart chosen to join the offer ⁷⁴ he Off- remises Offer is aimed at mall conomic Operators ( O ) and Business customers and involves sales through the presence of the salesperson at the customer's premises and the use of automated tools for signing contracts

⁷⁵ he ingle Front nd (F U) is oste taliane's product sales platform that allows the sale of different products to be managed through a single system and render a more efficient service to customers

⁷⁶ Universo funds are flexible, multi-manager funds with an G approach, which differ from each other in their equity component

	he Fondo BancoPosta Obbligazionario Italia 6 Anni II was launched in March 2023 his is an income-distributing bond fund that invests at least 70% of its assets in talian government bonds and bonds issued by talian companies and deposits with talian banks n March 2023, the Fund Accumulation Programme was launched: a new service that can be activated on the current account, where a remuneration is paid on a sum of money tied up and earmarked for a plan of scheduled payments into Mutual Funds n June 2023, the Fondo BancoPosta Obbligazionario a 5 Anni was launched: a flexible income-distributing bond fund that invests in government, supranational and corporate "investment grade" bonds with a minimum of 50% and merging Countries and non-investment grade corporate bonds with a maximum of 50% n eptember, the Fondo "Bancoposta Obbligazionario 3 Anni" was launched: a bond fund that invests in investment grade bonds of government, supranational and corporate issuers
Assets under Administration	Both Funds may invest predominantly in talian issuers n March 2023, oste taliane took part in the placement of the 19th issue of the Multi-year Treasury Bond (BTP) Italy, a security linked to the talian inflation trend with the change to a 5-year duration, with inflows of around €280 million
	n June 2023, oste taliane took part in the placement of the new BTP Valore, a security with a duration of four years and which provides for the payment of fixed coupons increasing over time and a loyalty premium on the issued capital for those who purchase the security during the placement phase and keep it until maturity he record collection of oste taliane is over €800 million on the first issue of the B Valore
	n October 2023, oste taliane participated in the placement of the second issue of the BTP Valore, (a five year security) with over €700 million in funding
Distribution of loans and other third party products	For loans dedicated to Business customers, in May 2023, the placement of Banca CF+ products was started, thus expanding the range of loans with medium- and long-term products, dedicated to corporations and assisted by the Central Guarantee Fund for M s and the ace- upport talia guarantee
	A new short-term financial product was developed during the second quarter of 2023, for liquidity advance on the basis of the value transacted on POS, assisted by the Central Guarantee Fund for M s and dedicated to companies that are current account holders of Bancoposta and have subscribed to the oste ay acquiring service he placement is scheduled to start during 2024
	77" product, as of March 2023 the offer was also extended to semi-public With regard to the "Quinto BancoPosta76F employees or employees of state-owned companies
Other assets	n May 2023, in continuation of the agreement that expired at the end of 2022, was the signing of the new Agreement with the Ministry of Economy and Finance - tate General Accountancy Office - regulating treasury services and the movement of funds on behalf of the tate he Agreement has a duration of three years, from 1 January 2023 to 31 December 2025, and mainly defines the mechanisms for the daily settlement of financial flows related to the services performed by Banco osta on its own account (postal current accounts) or on behalf of other public entities (postal savings, payment and collection services, etc )

⁷⁷ t is the loan dedicated to civil servants, para-public employees and retirees, which can be used to carry out new projects, but also to pay off other loans in progress, with a monthly repayment equal to up to one-fifth of the monthly net salary or the monthly net pension

n July 2023, the disbursement of the first economic measure7F ⁷⁸ of immediate support to the population affected by calamitous events in milia-Romagna began by bank transfer and in cash, at the ost Office network, as provided for in the Agreement signed with the Civil rotection Department at the residency of the Council of Ministers

4 5 4 URA C RV C RA G C BU U

MARK CO X

Life Business

During 2023, the market continued to be affected by the uncertainty related to the war in Ukraine and the sraeli alestinian conflict, and by the still high levels of inflation and interest rates, albeit slowing compared to the beginning of the year

During the year, net inflows in the life segment were negative and amounted to -€22 8 billion, down by about €40 billion compared to the balance recorded in 2022, when the amount was positive and close to €16 billion his result is attributable to the decline in premiums (-3 2% compared to 2022) linked exclusively to Class life products and to the increase in outflows (+45%), mainly due to higher lapses related to Class life policies (a phenomenon attributable to the rise in rates that prompted savers to look for products with higher returns) At the end of December 2023, the lapse rate was 10 63%78F ⁷⁹ compared to 6 71% in 2022

he new individual life insurance policies in the talian market, based on the latest available data79F ⁸⁰, amounted to approximately €74 2 billion at the end of December 2023, a negative change of 3 3% compared to 2022 f new Life premiums reported by U companies is also taken into account, the figure reached €82 5 billion, down 5 2% compared to 2022

Analysing the data by line of business, premiums from Class I, which confirmed its leading role in the life business with a 76% share of the total at the end of December 2023, amounted to €56 3 billion at the end of December 2023, +11 9%

compared to the previous year he collection of Class III products (in the exclusive form of unit-linked products), at €14 8 billion, was down (-37 5%) compared to the figure at the end of December 2022 Although residual, inflows of capitalisation products amounted to €0 8 billion and decreased by 27 6% compared to 2022 he volumes of new premiums relating to long-term health policies (Class IV) continued to be limited (approximately €111 million), and up (+30 6%) compared to 2022

ew contributions relating to the management of pension funds recorded inflows of €2 2 billion, an increase (+39 8%) compared to 2022

ingle premiums continued to be the preferred form of payment for policyholders, representing 95 2% of total premiums written and 60 6% of policies by number

With regard to the distribution channel, 64 7% of new business was brokered through banks and post offices until the end of December 2023, with premium revenue of €48 billion, a decrease (-1 3%) compared to 2022 On the other hand, with regard to the entire agency channel, the volume of new business distributed reached €15 7 billion in 2023, marking an increase in volumes of 1 1% compared to the previous year and with an incidence on total brokered business of 21 1%

⁷⁸ ursuant to art 140 of Legislative Decree no 36/2023

⁷⁹ ource: Report A A - rends in Life Flows and Reserves Year X - no 04 - published on 21 February 2024

⁸⁰A A Report - Year X X - no 12 - published on 1 February 2024

he performance of new business obtained through qualified financial consultants was €9 5 billion, down considerably (- 15%) compared with the amount placed in the previous year and with an incidence compared to the total of brokered premiums equal to 12 8%

Finally, the broker and distance sales channel recorded a decline of 29 6% compared to 2022, with a volume of premiums placed of €1 billion (or 1 4% of the total brokered)

New individual and collective Life policy production by line of business (*) (figures updated to December 2023 in €mln)

Premiums by class/product	Premiums YTD	% change 2023 vs 2022
Life - class I	56,307	+11.9%
Unit - Linked - class III	14,788	-37.5%
Capitalisations - class V	823	-27.6%
Pension funds class VI	2,213	39.8%
Illness class IV	111	30.6%
Italian insurers - non-EU	74,242	-3.3%
EU insurers (**)	8,238	-19.5%
Total	82,480	-5.2%

(*) Source: ANIA

(**) The term "EU insurers" refers to the Italian subsidiaries of undertakings with a registered office in an EU country operating under the right of establishment and freedom to provide services. The figures refer solely to undertakings taking part in the survey.

New Life individual business by distribution channel

&C Business

As regards the P&C insurance market, based on the available official data80F ⁸¹ at the end of the third quarter of 2023, total direct talian premiums, also including policies sold by talian and overseas undertakings, amounted to €31 2 billion, up 7 5% compared with the same period of 2022, when the sector recorded growth of 6 3% he above-mentioned increase is attributable, in particular, to the development of the on-Motor sector (+8%) remiums in the Motor sector rose (+7%), mainly due to the increase in premiums in the Land Vehicle Insurance business (+12 1%) and partly also in the Motor Third Party Liability business, whose premiums grew by 5 4%

With regard to the Non-Motor class, all the main insurance classes contributed to the aforementioned 8% growth during the period: i) Health insurance with a volume of €2,930 million and growth of 13 3%; ii) Personal injuries class with premiums of €2,807 million and an increase of 4 3%; iii) General TPL class with premiums of €3,668 million and an increase of 7 3%; iv) Other damage to property class with an increase of 7 7% and total volumes of €3,022 million; v)

⁸¹ A A Report - Year X - no 35 - published on 30 ovember 2023

finally, Fire and natural elements class with a total production of €2,198 million and an increase of 9 1% Also of note is the growth achieved by the Credit and Legal Assistance classes, +14 4% and +7 6% respectively, with total premiums of €677 million and €812 million respectively

As regards the distribution channels, the agency channel is confirmed as the leader with a market share at the end of eptember 2023 of 72 4% in line with the figure recorded in the same period of 2022 Brokers represent the second &C premium distribution channel with a market share of 9 4% (8 7% at the end of eptember 2022), while bank and post office branches recorded a market share of 9 2% (9 2% in the first nine months of 2022)

As regards direct sales as a whole (including distance, telephone and internet sales), at the end of eptember 2023, there was an incidence of 8 5% (down compared to 8 7% in the corresponding period of 2022) he remaining 0 4% (unchanged from the figure at the end of the third quarter of 2022) relates to premiums brokered by qualified financial consultants

Direct P&C premiums by class (*)

(data updated to September 2023 in €m)

YTD	Premiums % change Q3 2023 vs Q3 2022
12,747	+7.0%
18,460	+8.0%
31,207	+7.5%

(*) Source: ANIA

(**) Premiums refer to Italian and non-EU undertakings and EU undertakings.

Distribution of direct P&C premiums by distribution channel (*)

Source: ANIA

(*) Italian insurers and non-EU insurer representatives operating as an establishment.

R GULA ORY CO X

IVASS IFRS 17 Letter to the market of 3 January 2023

n its letter to the market of 3 January 2023 - A / FR Consolidated Financial tatements - Disclosures on the ransition to FR 17 as per Annex 4 of Reg no 7/2007 as amended by Measure 121/2022, VA provided guidance on the transition to the new FR 17 standard he current Annex 6 of Regulation no 7/2007 has been replaced by the new Annex 4 "Report on the consolidated financial statements items relating to insurance contracts", which provides that, with reference to the financial year 2023 only, a disclosure on the transition to the new standard must be provided, distinguishing between insurance contracts issued, outward reinsurance and investment contracts issued with discretionary participation features his information was submitted to the nstitute on 27 October 2023 together with the documentation relating to the consolidated half-year report

Annual Report 2023

IVASS - (the insurance regulator) Dormant Policies Letter to the market of 16 March 2023

European Commission Supervision of insurance companies Regulations 2023/894 and 2023/895

With the Letter to the Market of 16 March 2023, which follows the Letter to the market of 6 December 202281F ⁸², in order to allow the verification of the payment status of the sums relating to the policies resulting from the cross-referenced data, both life and accident, VA requested companies to provide a report by 30 June 2023 on the activities carried out for settlement, including an update on the policies cross-referenced in past years he nsurance Group Companies submitted the required information to the upervisory Authority in June

On 4 April 2023, the uropean Commission adopted two regulations for the information that companies must provide for supervisory purposes:

• mplementing Regulation ( U) 2023/894, repealing mplementing Regulation ( U) 2015/2450, laying down implementing technical standards for the application of Directive 2009/138/ C with regard to the templates for the submission by insurance and reinsurance undertakings to their supervisory authorities of information necessary for their supervision;
• mplementing Regulation ( U) 2023/895, repealing mplementing Regulation ( U) 2015/2452, laying down implementing technical standards for the application of Directive 2009/138/ C with regard to the procedures, formats and templates for the disclosure by insurance and reinsurance undertakings of their report on their solvency and financial condition

IVASS - (the insurance regulator) Survey on collective agreements signed in the health insurance class Letter to the market of 30 March 2023

VA carried out for 2023 the fifth edition of the survey on collective agreements underwritten in the health insurance sector82F ⁸³, involving companies with their registered office in taly that have written at least €10 million in direct premiums in the health insurance sector for the financial year 2022

oste Assicura submitted the requested data in April and May 2023 in accordance with the timelines and procedures indicated by VA

IVASS - (the insurance regulator) Sustainable Finance Measure no. 131 of 10/05/2023

VA with Measure no 131 of 10 May 2023 has adapted the regulatory provisions no 24 of 6 June 2016, no 38 of 3 July 2018, no 40 of 2 August 2018 and no 45 of 4 August 2020, in order to align with the provisions of the uropean Legislator, in particular with the olvency regulatory framework and the nsurance Distribution Directive " DD" on sustainable finance n order to comply with the new regulations, oste Vita company has recently set up an internal G ( nvironmental, ocial, Governance) Working Group, which steered the necessary adjustments

⁸² n its Letter to the Market of 6 December 2022, the Authority requested from companies conducting life insurance and/or accident insurance business, the list of tax codes of insured persons in order to ascertain whether insured persons had died and when ⁸³ he data to be reported to VA are: the amount of gross premium revenue in 2022, claims expenses for 2022, development by generation of paid and reserved claims at the end of the financial year 2022, number of risk units for the financial year 2022

IVASS - (the insurance regulator) Determination of technical provisions Measure no. 132 of 6/06/2023

With VA with Measure no 132 of 6 June 2023, containing amendments and additions to VA Regulation no 18 of 15 March 2016 concerning the application rules for the determination of technical provisions, two new guidelines of the uropean nsurance and Occupational ensions Authority ( O A) are introduced concerning the valuation of technical provisions and the determination of contractual limits, applicable from 1 January 2023

IVASS - (the insurance regulator)

Unavailable reserve Measure no. 1/2024 Following the issuance of the M F Decree of 14 eptember 2023, which extended to the 2023 financial statements the temporary suspension of capital losses already in force for the 2022 financial statements and provided that insurance companies, when preparing their annual financial statements and half-yearly report for the year 2023, for the purpose of calculating the unavailable reserve, should not also take into account the effect of securities write-downs on existing commitments towards policyholders referred to the financial year of the financial statements and up to five subsequent financial years, VA made changes with Measure no 138 of 15 eptember 2023, amending Regulation no 52/2022 in order to take into account the aforementioned provisions

Following the issuance of the M F decree of 8 February 2024 by which it was stipulated that companies determine the amount of distributable profits by also taking into account the amount already distributed for the financial year 2022, on 23 February 2024 VA placed Measure no 1/2024 under consultation until 9 March 2024 in order to amend VA Regulation no 52 of 30 August 2022

oste Vita, et nsurance Life and et nsurance will avail themselves of the option introduced by the aforementioned measure by sterilising an amount of value adjustments equal to €2 7 billion, approximately €4 million and approximately €2 million, respectively, before tax effects, for the preparation of their statutory financial statements at 31 December 2023

IVASS - (the insurance regulator) Life Insurance Guarantee Fund he 2024 Budget Law83F ⁸⁴ established the "Life nsurance Guarantee Fund" he fund is an associative body established between insurance companies and member intermediaries with the aim of intervening to protect those entitled to benefit from the insurance benefits of those companies t makes payments in cases of compulsory liquidation of member insurance undertakings and, if provided for in the articles of association, also intervenes in transactions involving the transfer of assets, liabilities, businesses, business units, assets and legal relationships that can be identified en bloc he life insurance guarantee fund settles protected benefits up to a maximum amount of €100 thousand per claimant he Guarantee Fund is governed by private law and its endowment is constituted by financing made available to its members, so as to reach an amount equal to at least 0 4% of the amount of the life insurance technical provisions at 31 December of the previous year (provisions determined according to olvency calculation methods)

he Budget Law specifies that the endowment is to be reached gradually, starting on 1 January 2024 and by 31 December 203584F ⁸⁵ (a term that may be further extended, up to a maximum of two years, by decree of the Ministry of the conomy and Finance) and constitutes an

⁸⁴ Law no 213 of 30 December 2023 " tate budget for the financial year 2024 and multi-year budget for the three-year period 2024-2026" published in Official Journal no 303 of 30 December 2023

⁸⁵ f, after 31 December 2035, the endowment falls below the target endowment, members will be required to replenish it through periodic contributions, to be paid within three years if the endowment falls to less than two-thirds of the required target

autonomous asset, on which actions by the Fund's creditors and those of the creditors of individual members are not allowed, and is to be invested by the Guarantee Fund in low-risk assets with sufficient diversification

With regard to the oste Vita, the amount of the contribution for the year 2024, determined on the basis of the technical provisions at 31 December 2023, is estimated to be around €58 million; Bancoposta RFC will contribute an estimated €16 million to the Fund's endowment for the year 2024

O H R FORMA O

IVASS - (the insurance regulator)

With regard to the VA inspection of Poste Vita concerning the governance, management and control profiles of investments and financial risks concluded on 7 May 2021, discussions continued with VA during the period and on 25 July 2023, the decision-making phase was concluded by the upervisory Authority, which notified the Company of the imposition of a fine of €1 8 million he sanction was imposed as a result of violations of the applicable regulations found by VA with particular reference to:

• alleged failures in the governance and management of financial risks as well as in the protection of policyholders' rights for investments made through so-called "multiasset" funds;
• alleged deficiencies in the process of defining the Risk Appetite Framework

For the main pending proceedings and further relations with the Authorities, please refer to the chapter " roceedings pending and principal relations with the Authorities" in the section " oste taliane's Financial tatements"

O RA G R V W

he following table shows the main activities of the nsurance ervices trategic Business Unit during the period

SEGMENT	OPERATING REVIEW	PILLAR
Life	n the context of Class I investment products: • in April 2023, the "Poste Domani Insieme" policy was launched with a duration of 10 years and with the main feature of the ew eparately Managed 86 Account called "Poste Vita Valore Solidità"85F
	87" he policy includes as ancillary cover the free serious illness policy " oste protezione Mia86F • in June 2023, a policy called "Orizzonte 5" was launched, with a duration of 5 years with the eparately Managed Account called "Posta ValorePiù" and can only be subscribed to for the potential reinvestment, as part of advisory services, of expired or maturing policies; • ovember 2023 saw the placement of the new "Poste Prospettiva Valore Gold" policy, a mixed-form life insurance policy with a 10-year term and annual revaluation of the invested 88 capital87F
	n the context of Multi-class investment products:

⁸⁶ he main feature of the new separately managed account is the presence of the so-called "profit fund": a fund that is established by setting aside net capital gains realised on the sale of assets under the separately managed account

⁸⁷ " oste Domani nsieme" subscribers aged between 18 and 69 are offered " oste rotezione Mia", a free serious illness policy provided by oste Assicura, designed to protect their investment n the event of the first diagnosis of a serious illness, oste Assicura shall in fact pay the olicyholder an indemnity equal to 25% of the life premiums paid into the insurance investment product, non-revalued and resulting at the time of the first diagnosis of a serious illness, net of any partial redemptions and releases for other causes

⁸⁸ he policy provides for an annual revaluation of the invested capital, at a certain and predetermined rate for the first 5 years and, during the years following the first 5 years, an annual revaluation, positive or negative, of the consolidated amount based on the performance of the separately managed account fund oste Vita Valore olidità

P&C

• from July 2023, "Poste Progetto Integrazione Programmata", a mixed-form life insurance contract8F ⁸⁹ (build-up component and unit-linked component) is being placed on the market t is characterised by the provision for decumulation: the customer has access to a plan of automatic and scheduled periodic redemptions of the nvested Capital89F ⁹⁰ he contract duration is 15 years; • from ovember 2023, "Poste Progetto Bonus 4in4", a mixed-form life insurance contract with a duration of 15 years, which provides for the payment of two bonuses of 2% of the premium in the first and fourth year, is being placed on the market he policy includes as ancillary cover

P&C/Life From April 2023, the restyling90F ⁹¹ of the "person" coverage policies is available in all post offices, as well as the unique underwriting process with the Poste Protezione Affetti 360 life insurance policy

During the first half of the year, the new version of "Posteprotezione Prestito" was made available at all post offices Compared to the previous version, the policy includes new covers and services, such as legal protection and job replacement91F 92

the free serious illness policy " oste protezione Mia"

During the fourth quarter of 2023, the new insurance "Check Up" service was released, which allowed for a comprehensive consultation to develop the analysis of the needs and requirements of the individual customer in the household

4 5 5 PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT

MARK CO X

he latest available data92F ⁹³ on the talian payment cards market show significant growth of the total domestic transactions,

which in eptember 2023 surpassed €322 billion, an increase of 17 8% compared to eptember 2022 due to the rise in inflation rates he number of transactions grew by 23 2% over the same period last year to 7 2 billion, a sign of an increasingly more consolidated daily use of cards, also thanks to a greater propensity and acceptance of

value of card transactions in the first 9 months of 2023 in Italy: +17.8% year-on-year >€322 billion

the use of digital payments by merchants (e-commerce and

contactless payments) Debit card transactions grew by 22% compared to eptember 2022 and accounted for more than half of the total transactions (59%), with transactions exceeding €187 billion (+15% compared to eptember 2022) Also prepaid cards are advancing at a fast pace (+17% of transactions and +13% in terms of value compared to eptember 2022), for a total amount of more than €52 billion, thanks to the steady development of e-commerce and increased penetration at physical points he first nine months of 2023 were also positive for credit cards , ending the

⁸⁹ he contract benefits are linked to the oste Vita's eparately Managed Account osta Valore iù and to the value of the units of one of the three available nternal nsurance Funds: oste Vita Valore ostenibilità quilibrato, oste Vita Valore ostenibilità Dinamico and oste Vita Valore ostenibilità viluppo

⁹⁰ he product is aimed at customers who have at least €40,000 in investable assets and whose goal is capital appreciation and growth over a long-term time horizon

⁹¹ his is a simplification of the purchasing process for insurance products covering the risks for the person, death or permanent disability from illness and accidents

⁹² he job replacement service is aimed at reintegration into the world of work; if a policyholder loses his or her job, a customised training development plan is drawn up for him or her, support is provided in updating his or her CV, and specific motivational learning sessions are organised At the end of the course, it is assessed which partner companies could represent a valid opportunity for the policyholder to re-enter the labour market and the parties are put in contact, it being understood that in no way, there is a guarantee of eventual employment

⁹³ ource: rocessing of data from Bank of taly - ayments ystem and Annual Report

period on an upward trend with transactions up 36% and value up 29% compared to eptember 2022, with a total amount of more than €82 billion

At 30 eptember 2023, the number of active cards on the market exceeded 93.8 million, up 1% compared to the stock of active cards at 31 December 2022: the greatest growth was recorded on debit cards, which grew by 1 3% compared to 31 December 2022, totalling more than 49 6 million active cards he stock of prepaid cards remained stable, the number of which exceeded 30 million (+0 3% compared to the figure at the end of December 2022) Credit cards also grew (+1 3% compared to 31 December 2022), with more than 13 5 million active cards

he mobile telephony market, based on the latest available data93F 94, showed a slight increase in the stock of Human-to-Human Ms94F ⁹⁵ compared to 2022, a sign of a market that is now saturated but shows dynamism in the stock of individual operators n particular, the share of Mobile Virtual etwork Operators (MV Os) grew, eroding the market shares of the other top players, sitting at 16%95F ⁹⁶ oste Mobile, which accounts for 35% of MV Os, remained essentially stable (-0 3% compared to December 2022) with a market share of 5 6% otal lines at 30 eptember 2023 amounted to 108 5 million (+1 3% compared to the same period in 2022) including 29 7 million Machine to Machine (M2M) Ms96F ⁹⁷ (+3 7% compared to the same period of 2022)

During 2023, the energy market experienced a gradual rebalancing after the rise in commodity prices, including primarily gas, with significant repercussions on the electricity market97F 98

n the second quarter of 2023, the gas and electricity market saw a significant reduction in wholesale gas and electricity prices as the risk of gas shortages in the later part of the winter was gradually overcome n fact, winter temperatures were relatively mild and the diversification of uropean gas supplies made it possible to get through the winter period while coping with the risk of a shortage of the raw material n the third quarter of 2023, the stabilisation of prices in the gas and electricity wholesale markets continued, and during this period the filling phase of gas storage took place at a good pace, in preparation for the winter season At the end of eptember 2023, the talian and uropean stocks were close to full n the fourth quarter of 2023, the gradual reduction and stabilisation of prices on the gas and electricity wholesale markets continued, thanks to the above-average seasonal temperatures recorded and the low demand for gas on both the residential and industrial and thermoelectric consumption fronts he balance between gas supply and demand at national and uropean level was positive in the first part of the winter, which led to a further drop in market prices in the final part of the year However, the gas market remains characterised by uncertainties stemming from the international geopolitical and economic environment, albeit to a lesser extent than in 2022, resulting in price volatility, which is also reflected in the electricity market

Against this context, the institutions continued a gradual reduction of the concessions introduced during 2022 to cope with rising gas and electricity wholesale prices

For more details on the regulatory interventions implemented, see below

R GULA ORY CO X

Below are the main regulatory initiatives that will be updated in the course of 2023

⁹⁴ ource: Agcom Communications Observatory no 4/2023, Operators' Report

⁹⁵ H2H (Human-to-Human) Ms are the ones in everyday use in smartphones that allow calls and data connections

⁹⁶ ource: nternal oste ay pA estimate on Human to Human Ms

⁹⁷ M2M M make use of technology that enables the integration and dialogue between devices (even of different types) installed at any distance from each other through sensors that send (or acquire) data that are then transmitted to a central server via a network hey are exclusively dedicated to data traffic, the voice area is completely disabled and in its place is a module that allows both control and remote control

⁹⁸ Rising gas prices have also driven up electricity prices, since in taly and many other uropean countries the marginal price of electricity is defined by the generation costs of natural gas-fired thermal power plants

For further information

Electronic money

TLC Terminating voice calls

Within the framework of the Regulation, published in the Official Journal on 22 April 2021, regarding a single maximum termination rate for calls to mobile and fixed networks in the uropean Union, as of 1 January 2023, the rates applicable in taly are as follows:

lease refer to the regulatory framework of the Financial ervices BU for more details

• €0 40 cents per minute (excluding VA ) is the maximum mobile termination price, i e the amount payable by the originating operator of the call to the mobile telecommunications operator for each voice call terminating on the latter's mobile network (on its customer's terminal);

• €0 07 cents per minute (excluding VA ) is the maximum price payable to the fixed network telecommunications operator for call termination on the latter's network

oste ay adopted the tariff regime within the time-frame provided by the regulatory framework

TLC SMS ALIAS On 15 May 2023, the talian Communications Authority (AGCom) published Resolution no 12/23/CO "Regulation on the use of alphanumeric characters identifying the sender in corporate messaging services ( M AL A )", approved following the public consultation launched in December 202198F ⁹⁹, in which oste ay also participated he new provisions define the obligations and roles of the parties involved in the corporate messaging service chain with the corresponding implementation time frames As of 3 ovember 2023, oste ay, in line with the provisions of the Resolution, implemented the blocking of messaging ( M /MM ) with non-numeric coding from abroad Further obligations under the Resolution will be implemented following the provision by the Authority of the new platform for M management with AL A

TLC Parental Control

With Resolution no 9/23/C R of 25 January 2023, AGCom implemented the normative dictate of Art 7-bis of Legislative Decree no 28 of 30 April 2020 on " ystems for the protection of minors from the risks of cyberspace" As of 21 ovember 2023, electronic communications operators have to provide " arental control systems or filtering of inappropriate content for minors and blocking of content reserved for an audience over the age of eighteen" for all connectivity services (fixed and mobile) hese control systems consist of free, pre-activated services, that can be deactivated only at the request of the adult consumer, account owner oste ay contracts and offers (in the area of fixed and mobile telephony) can only be subscribed and activated by customers of legal age oste ay, in cooperation with technology partners, has made available to customers the arental Control ystems and the associated procedures and instructions for activating, setting up, deactivating, and reactivating them on time

⁹⁹ Resolution AGCom no 408/21/CO of 16 December 2021 M AL A refers to an alphanumerically encoded character string transmitted in M communications oste ay took part in public consultation 408/21/CO initiated by AGCom, pointing out that the abusive use of aliases in communications directed at certain categories of end users is likely not only to affect the proper provision of electronic communication services, but also the proper use of payment and financial services involving the ancillary and integrated use of electronic communication services

On 25 August 2023, with Resolution no 197/23/CO , AGCom approved a Code of Conduct in order to regulate contractual and technical relations between electronic communications operators and entities (such as call centres and agencies) that carry out promotional activities and the sale of goods and services (telemarketing and teleselling) he Code produces direct mandatory effects for operators who subscribe to it and indirect mandatory effects for call centres, insofar as they have been contractually engaged by operators who have subscribed to the Code and who comply with its provisions he new measures entered into force on 21 February 2024 oste ay does not currently engage in telemarketing and teleselling activities as defined in the Code of Conduct On 23 February 2023, the uropean Commission presented the proposal for a Regulation on measures to reduce the cost of deploying very high-speed electronic communications networks (Gigabit nfrastructure Act) in order to enable faster, cheaper and more effective deployment of Gigabit networks in the uropean Union and which will replace the current Directive 2014/61/ U of the uropean arliament and of the Council of 15 May 2014 Discussions are currently under way in the Council of the uropean Union on the abovementioned proposed Regulation9F ¹⁰⁰ and, once it is adopted by the arliament and the Council of the uropean Union, it will be directly applicable and will not require transposition into national law TLC Code of Conduct for Call Centre Activities TLC Gigabit Infrastructure Act TLC

Quality of mobile and personal communications

services

On 28 February 2023, the talian Communications Authority (AGCom) published Resolution no 23/23/CO " rovisions on the quality and charters of mobile and personal communication services", which was approved following the public consultation launched in July 2022, in which oste ay also participated he new provisions define the information that mobile and personal communications service providers must provide to users regarding the quality of their mobile services

oste ay has completed the necessary activities to adapt to the changes introduced within the timeframe foreseen by the new regulations

TLC

Quality and charters of electronic communication services accessible to the public from a fixed location

On 31 July 2023, AGCom approved Resolution no 156/23/CO " rovisions on the quality and charters of electronic communications services accessible to the public from a fixed location", following the conclusion of the public consultation10F ¹⁰¹ in which oste ay also participated he new provisions define the information that providers of mobile and personal communications services must provide to users regarding the quality of services offered in the area of fixed telephony and fixed location nternet services oste ay implemented the necessary measures10F ¹⁰² to comply with the changes introduced, which came into force on 27 January 2024, and participated in round-table work groups to update the Guidelines for measuring the quality of nternet service from a fixed location

¹⁰⁰ https://eur-lex europa eu/legal-content/ /H /?uri=C L X:52023 C0094

¹⁰¹ Resolution no 405/22/CO

¹⁰² For example: new section of the site dedicated to technical transparency, addition to the contractual kit of a document specifying the technical characteristics of the service provided, etc

Annual Report 2023

TLC Customer service quality

With Resolution no 436/22/CO , AGCom initiated proceedings and a public consultation to revise the regulations and quality indicators for customer care services in the electronic communications and audiovisual media services sector, with a view to aligning them with modern digital assistance technologies and the new lectronic Communications Code with regard to quality indicators (K s), transparency of information provided to users, methods for submitting and tracking complaints, measurement of the actual quality achieved, and compliance with minimum standards oste ay sent in its assessments and comments on the new regulatory proposal

TLC Electronic communications

he Ministry of nterprise and Made in taly (M M ) has launched a public consultation concerning the draft legislative decree correcting the lectronic Communications Code - Legislative Decree no 259 of 1 eptember 2003102F 103

he outline of the legislative decree put out for consultation tends, from a formal point of view, to update certain regulatory references and make textual changes, while in terms of content, to gather possible contributions and observations on the main issues dealt with by the new uropean lectronic Communications Code oste ay sent its comments and M M published a summary of the comments submitted by the operators, reserving the right to supplement the existing regulations

With Resolution no 89/23/CO , AGCom initiated proceedings and a public consultation for the revision and amendment of the "Regulation containing provisions for the protection of users with regard to contracts for the provision of electronic communications services" he initiative is part of the regulatory review activity to protect end users in order to adapt the current provisions to the transposition of the new uropean lectronic Communications Code oste ay sent its considerations and at the conclusion of the consultation, AGCom will publish the results and incorporate the comments submitted by the operators who participated in the consultation103F 104

TLC Copyright

On 26 July 2023, AGCom issued Resolution no 189/23/CO approving the amendments to the Regulation on the protection of copyright on electronic communication networks and implementation procedures pursuant to Legislative Decree no 70 of 9 April 2003 he Resolution, which came into force on 1 January 2024, implemented Law 93/2023 on " rovisions for the prevention and suppression of the unlawful dissemination of copyrightprotected content via electronic communication networks" and allows AGCom to order service providers including network access providers, to disable access to unlawfully disseminated content by blocking the Domain ame ystem (D ) resolution of domain names and blocking the routing of network traffic to addresses uniquely intended for unlawful activities oste ay, within the prescribed deadlines, has accredited itself on the dedicated " iracy hield" platform104F ¹⁰⁵ and - through its access providers - is fulfilling its obligations under the law

¹⁰³ Legislative Decree no 259 of 1 August 2003 as amended by Legislative Decree no 207 of 8 ovember 2021, issued in implementation of Directive ( U) 2018/1972 of the uropean arliament and of the Council of 11 December 2018, establishing the new uropean lectronic Communications Code

¹⁰⁴ he deadlines for the closure of the proceedings were extended by 90 days, expiring in December 2023: AGCom Resolution no 192/23/CO published on 6 eptember 2023

¹⁰⁵ he iracy hield platform, which has been in operation since 1 February 2024, enables the automated handling of alerts following a precautionary order issued by the talian Communications Authority under Art 9-bis, paragraph 4-bis of the Regulation

ENERGY

Regulatory interventions to contain prices

he concessions provided in 2022 for the containment of price increases in the electricity and natural gas sector were partially extended in 2023

Law no 197 of 29 December 2022 (so-called Budget Law), has in fact confirmed, for the first quarter of 2023, the cancellation of general system charges for domestic electric customers and non-domestic customers with available power up to 16 5 kW and for natural gas customers For the latter, the 5% VA reduction on consumption was also confirmed, and social bonuses for eligible households were also increased

Further regulatory interventions extended the measures of the aforementioned Budget Law for the whole of 2023 (Law Decree no 34 of 30 March 2023, converted by Law no 56 of 26 May 2023, Law Decree no 79 of 28 June 2023 and Law Decree no 131 of 29 eptember 2023), with the exception of the zeroing of general charges for electricity customers, which ceased as of April 2023

he "Aiuti Bis" Law Decree (Law Decree 9 August 2022, no 115, converted with Law 21 eptember 2022, no 142) also intervened by suspending, until 30 April 2023, the effectiveness of contractual clauses that allow electricity and gas sellers to unilaterally change the general terms and conditions of contracts relating to price definition (changes notified to customers before 10 August 2022 are also rendered ineffective, unless they have already been finalised by that date) he "Milleproroghe" Law Decree (Law Decree no 198 of 21 December 2022, converted by Law no 14 of 24 February 2023) extended the deadline to 30 June 2023

he "Aiuti Bis" Law Decree, in view of the end of regulated gas prices, initially scheduled for 1 January 2023 (Law Decree 176 of 18 ovember 2022 "Aid Quater" extended the deadline to 10 January 2024); it also redefined - and narrowed - the perimeter of "vulnerable"105F ¹⁰⁶ customers by stipulating that, as of 1 January 2024, suppliers must make available an offer for the supply of natural gas at contractual and economic conditions defined by the Regulatory Authority for nergy etworks and the nvironment (AR RA) n order to make these regulatory provisions operative, AR RA adopted Resolutions 100/2023/R/com and 102/2023/R/com, described later in this report

ENERGY Guarantees of Origin

n implementation of Legislative Decree no 199/2021 transposing Directive ( U) 2018/2001 ("Red "), the Ministry of the nvironment and nergy ecurity (MA ) published Ministerial Decree no 224, of 14 July 2023106F ¹⁰⁷, which innovates the regulation of Guarantees of Origin (GO certificates) of the Gestore dei ervizi nergetici (G ), i e certificates attesting to the origin of electricity from renewable sources ales companies, like oste ay, that intend to promote the renewable origin of the electricity they sell to their customers are obliged: i) to procure a quantity of GO certificates equal to the electricity they sell, where this is defined

¹⁰⁶ Compared to the current perimeter of "vulnerable" gas customers - which includes all customers with domestic use (not "other uses") and domestic condominiums with consumption below 200,000 smc/year - as of 1 January 2024, only domestic customers in economically disadvantaged conditions, customers with disabilities, customers with utilities on non-interconnected minor islands or in emergency housing facilities following calamitous events, and customers over 75 years of age are classified as "vulnerable"

¹⁰⁷ n the Ministerial Decree, some updates are made concerning: i) the modalities for issuing, transferring, recognising and cancelling Guarantees of Origin (GO) for electricity but - for the first time - also gas, hydrogen and thermal energy; ii) modalities for the use of GO by sellers; iii) criteria and modalities for providing end customers with information on the composition of the energy mix used and the environmental impact of production he Ministerial Decree also provides for: the establishment of a national GO Register at the G ; a new formulation of the energy mix; the provision of an indicator concerning the environmental impact of the energy mix used by the seller n this regard, it is expected that information on the energy mix and environmental impact will be made available to customers at the precontractual and promotional stage (as well as on the seller's website, in billing documents on a four-month basis and in the Offer ortal)

as energy produced from renewable sources; ii) to cancel, by 31 March of the year following the year in which the electricity was supplied to end customers, a quantity of GO certificates equal to the electricity sold and declared as renewable and referring to the same year By the end of 2023, AR RA and the G will have to issue the measures to implement the provisions of the Ministerial Decree

With Resolution 496/2023/R/com107F ¹⁰⁸, published on 2 ovember 2023, AR RA updated its measures implementing the above-mentioned Ministerial Decree

oste ay has, within the regulatory deadline, certified all electricity sold to its end customers in 2022 as being produced from renewable sources

With Resolution 637/2022/R/com, published on 1 December 2022, AR RA introduced changes to the mandatory information content of end customers' bills, which came into force from April 2023 oste ay has adapted to the regulatory changes

ENERGY ARERA Resolutions

With Resolutions 100/2023/R/com and 102/2023/R/com, published on 14 March 2023, AR RA implements the provisions of Article 1 59, of Law no 124 of 4 August 2017 (Annual Law on the Market and Competition) and the provisions of the aforementioned Law Decree no 115 of 9 August 2022, as converted by Law no 142 of 21 eptember 2022 (the so-called "Aiuti bis" Law Decree) regarding, respectively, the passing of regulated natural gas prices and the definition of the conditions for the supply of natural gas to vulnerable end customers, providing for a gradual implementation path of the reform to be completed by January 2024 oste ay complied within the deadline by implementing all actions required by the regulator

By virtue of the exceptional weather events that occurred in central taly in May 2023 (mainly in milia Romagna and Marche), AR RA, in implementing the Government's provisions108F 109 , approved Resolution 267/2023/R/com, published on 15 June 2023, "Urgent provisions on the subject of electricity, gas, water services and the integrated urban waste management service, in the territories affected by the exceptional meteorological events that occurred starting from 1 May 2023" by which it provides for the validity of the concessions provided by the Government for 4 months starting from 1 May 2023 ubsequently, with Resolution 390/2023/R/com, published on 4 August 2023, concerning the " xtension of the suspension of payment terms in favour of the populations most affected by the exceptional weather events that occurred from 1 May 2023", AR RA extended the aforementioned provisions to 31 October 2023 oste ay has taken the relevant measures to comply with the requirements imposed on electricity and natural gas sellers

With Resolution 383/2023/R/eel, published on 7 August 2023, on " rovisions for the identification of vulnerable customers in the electricity market", AR RA lays down the modalities for the identification by the ntegrated nformation ystem ( ) of vulnerable

¹⁰⁸ Resolution no 496/2023/R/com of 31 October 2023 concerning the "Update of the measures of the Regulatory Authority for nergy etworks and nvironment in implementation of Ministry of the nvironment and nergy ecurity Decree no 224 of 14 July 2023 on guarantees of origin and positive verification of the methods of acquisition, by the Gestore dei ervizi nergetici pA, of the measurements of the electrical, thermal and/or cooling energy produced and fed into the grid for the purpose of issuing guarantees of origin"

¹⁰⁹ he Council of Ministers approved Law Decree no 61 of 1 June 2023, on "Urgent interventions to deal with the emergency caused by the flooding events that occurred from 1 May 2023", which provided for a number of concessions in favour of the populations of the municipalities affected by the floods n particular, it provides - for the citizens of the municipalities for which a state of emergency has been declared - the suspension for 6 months of the payment deadlines for electricity and natural gas bills issued or to be issued and payment notices due from 1 May 2023

domestic electricity customers109F ¹¹⁰ For these customers, the Greater rotection ervice is temporarily extended, postponing to a subsequent measure the interventions for its removal With respect to the new market structure that will result from the regulation of the completion of the liberalisation process of the electricity market, oste ay is currently undergoing the appropriate evaluations

With Resolution 362/2023/R/eel, published on 4 August 2023, on " rovisions for the rendering of the gradual protection service for non-vulnerable domestic customers in the electricity sector, pursuant to Law no 124 of 4 August 2017 (Annual Law on the Market and Competition)", AR RA defines the operational modalities for overcoming the "Maggior utela elettrica" for domestic customers, the last to be affected by the reform n fact, it is envisaged that, as of 1 April 2024, non-vulnerable domestic electricity customers who have not chosen a supplier on the free market will be served within the framework of a service of last resort known as the " ervizio a utele Graduali" (Gradual rotection ervice), the management of which will be assigned through competitive procedures managed by the ingle Buyer10F ¹¹¹ open to market operators that meet certain requirements

With Resolution 600/2023/R/eel, published on 20 December 2023, on "Revision of the timing for the activation of the Gradual rotection ervice for non-vulnerable domestic customers in the electricity sector pursuant to Law no 124 of 4 August 2017", AR RA postponed the activation of the "Gradual rotection ervice" for domestic customers to 1 July 2024 with respect to the aforementioned deadline of 1 April, following the adoption of Law Decree no 181 of 9 December 2023 ( nergy Decree), which ensures that customers have sufficient time to be informed through an appropriate information campaign to be conducted by the Ministry of the nvironment and nergy ecurity Customers identified as vulnerable may continue to benefit from the " ervizio di Maggior utela"

With Resolution 339/2023/R/gas, published on 28 July 2023, AR RA introduced " rovisions on the communications functional to the permanence of companies selling electricity to end customers in the list of qualified entities, pursuant to the Ministerial Decree of 25 August 2022" he measure, which concludes the proceedings initiated by Consultation 186/2023/R/eel, is intended to allow the verification of certain requirements and indicators that must be met by sales companies in order to remain on the list of entities authorised to sell electricity to end customers, established by the same Decree n April 2023, oste ay proceeded to register on this public list, which is a necessary condition for being able to engage in the business of selling electricity to end customers

With Determination 4/2023 of 27 December 2023, in order to guarantee certainty in the relationships between distributors and network users, AR RA standardised the contents and rules for compiling the regulatory documents related to the natural gas distribution service invoice his standardisation will come into effect as of the distribution invoices of

¹¹⁰ Compared to the current perimeter of "vulnerable" electricity customers - which includes all customers with domestic use (not "other uses") - as of 1 April 2024 (extended to 1 July 2024), only customers over 75 years of age, customers who are in an economically disadvantaged condition, customers with serious health conditions that require the use of life-saving medical-therapeutic equipment powered by electricity or persons at whose locations persons with such conditions live, customers with disabilities within the meaning of Law 104/92, customers who are in an emergency housing facility following calamitous events, customers who are in a non-interconnected minor island will be classified as "vulnerable"

¹¹¹ A public company that was initially set up to supply electricity to customers served under the "Maggior utela" regime and that over the years has expanded its scope of activity, in particular by incorporating processes aimed at improving the operation of the energy market (e g management of the ntegrated nformation ystem and the Offer ortal)

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October 2024 and will allow easier verification of the amounts invoiced to oste ay by individual distributors

ENERGY

ARERA consultations

Consultation 341/2023/R/gas of July 2023, with the subject "Update of the regulation of the tandard etwork Code for the natural gas distribution service on the subject of guarantees" he consultation outlines AR RA's guidelines for supplementing the current regulation of the guarantees that distribution users must give to natural gas distribution companies in order to have access to the networks they operate and to be able to supply customers in their portfolio he consultation proposes changes to: (i) the timing and handling of the guarantee; (ii) expansion of the list of eligible guarantees; (iii) quantification of the guarantee; (iv) eligibility of insurance sureties; and (v) the deadline for paying invoices

Consultation 377/2023/R/eel of August 2023 on "Guidelines for the reform of the regulation of conventional withdrawal profiling for settlement purposes and the "residual" energy supply mechanism" he consultation concerns a wide-ranging process of organic revision of the current regulation of electricity settlement, i e the process by which erna determines and consequently assigns to users the physical and economic items relating to the provision of dispatching service on the national transmission grid he aim of the proposals is to make this process more efficient and in line with the costs borne by the operators, also in view of the abolition of the "Maggior utela lettrica" ervice oste ay is considering adjustments to the new regulations that will mainly impact the profiling of electricity consumption by end customers in the context of electricity dispatching

Consultation 517/2023/R/com of ovember 2023, with the subject "Revision of the Bill 2 0 regulation for greater simplicity, comprehensibility and uniformity" he document illustrates AR RA's guidelines for an organic revision of the Bill 2 0 regulation, containing the regulatory provisions burdening sales companies in preparing bills for electricity and gas consumption by end customers AR RA's proposals are intended to make end customers' bills simpler, easier to understand and more uniform oste ay is evaluating the impacts of the possible new regulation (e g developments with respect to the current layout and content of the bill)

O RA G R V W

Annual Report 2023

he following table shows the main activities of the ayments and Mobile trategic Business Unit for the period

SEGMENT	OPERATING REVIEW	PILLAR
Energy	he energy offer is characterised by being 100% green for light and 100% compensated in terms of CO2 for gas
	n the first quarter of 2023, the nergy offer was launched on an omnichannel basis in the mass market and the first dedicated communication campaign was carried out Communication activities continued in the third quarter with an "always on" presence on digital channels and in post offices n eptember, in particular, communication on the offer was relaunched with a significant increase on off-line channels such as: V, print and radio, as well as digital and post office channels; in December, communication activities continued on offline and online channels
Electronic Money/Collections and Payments	As part of the integration process of L , which was acquired in eptember 2022, the expansion of the services offered on the L point-of-sale network continued 112 and the withdrawal in 2023, with the launch of the "pay and collect" service1F 113 service using the ostepay app12F hese services are accessible from L network points of sale operating with ostepay acquiring, in line with the oste taliane Group omnichannel strategy
	During 2023, support for government initiatives aimed at supporting specific population groups continued with the production and management of three new cards: • the Postepay Borsa di Studio Card, which allows eligible persons 114 to spend the amount on certain Merchant Category Codes13F indicated by the Ministry of ducation and Merit • the Dedicata a te Card, promoted by the Ministry of Agriculture, Food overeignty and Forestry for the purchase of essential foodstuffs only • the IoStudio PostePay Card, intended for all students attending secondary schools and distributed annually at school
	n line with the G strategic objectives, the migration (renewals, replacements and first issues) of the ostepay card fleet towards cards made of environmentally sustainable material continued in 2023, the stock of which amounted to over 10 million at 31 December 2023

¹¹² With this service, customers can withdraw cash at the L point of sale at the same time as a payment transaction with a payment card

¹¹³ L AY's withdrawal service on debit cards issued by oste ay, i e the possibility of making a withdrawal using the ostepay app for customers with debit cards linked to a postal current account

¹¹⁴ A Merchant Category Code is a four-digit commodity code that classifies the type of goods or services offered by a company

5. STRATEGY

GRA G U A AB L Y W H O AL A ' RA GY O AL A ' U A AB L Y RA GY O AL A ' U A AB L Y A H

5.1 INTEGRATING SUSTAINABILITY WITHIN POSTE ITALIANE'S STRATEGY

o be sustainable for oste taliane means defining a clear strategy on G issues and structurally incorporating them within the strategic objectives set in the 2024-2028 trategic lan14F ¹¹⁵ Within the plan, €4 5 billion of investment is planned in strategic assets over the five-year period, in order to achieve financial objectives hese are augmented by the " olis roject", launched in 2023 (total investments of €1 2 billion until 2026) which, within the framework of the RR ( ational Recovery and Resilience lan), aims both to renovate and modernise ost Offices and to enhance the Group's real estate assets with co-working initiatives

Strategic Plan

MA L, ARC L A D D R BU O

he strategic objective of the Mail, arcels and Distribution segment is to accelerate its transformation from a pure mail operator to a full logistics operator, ensuring the economic and environmental sustainability of its operations mplementation of the strategy is based on streamlining of the distribution networks, consolidation of leadership in the B2C market and growth in the B2B and international segments through the introduction of specific offers and initiatives aimed at improving the customer experience With this in mind, the strengthening of the contract logistics division to offer end-to-end solutions will continue hrough the implementation of these strategic guidelines, the segment aims to achieve a permanently stable operating profit over the term of the plan

FINANCIAL OBJECTIVES	OPERATING OBJECTIVES
⦁ Revenue: €3 9 billion (2023: €3 7 billion), with an increase in revenue from the arcels segment exceeding the decline in the Mail segment ⦁ Revenue of the arcels segment: €2 0 billion (2023: €1 4 billion) ⦁ B : €0 1 billion	⦁ 369 million parcels in 2028 ⦁ 30 000 pick-up/drop-off points by 2028 (>80 million parcels handled) ⦁ ntegrated logistics: 400k square metres of warehouses

¹¹⁵ he financial and operating objectives shown in the tables refer to 2028

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023

he ayments and Mobile area aims to establish itself as a comprehensive and omnichannel platform for its customers, supporting the traditional business lines of payments and telecommunications with an offer dedicated to nergy, a market which the Company will enter by taking advantage of its liberalisation he acquisition of L , from this perspective, helped to enrich the Group's omnichannel strategy he expansion of the product range, together with the ability to take advantage of physical, digital and third-party network channels,

FINANCIAL OBJECTIVES OPERATING OBJECTIVES

customers

• ⦁ Revenue: €2 2 billion (2023: €1 4 billion)
• ⦁ B : €0 7 billion (2023: €0 4 billion), with CAGR of 8%
• ⦁ xpected oste ay volution portfolio of 10 8 million cards issued ⦁ xpected card transactions with a
• CAGR up 11%, to reach €4 6 billion ⦁ Customer base 2028 with 0 6 million Fibre and 2 5 million nergy

makes it possible to fully capitalise on cross-selling opportunities for customers, also through the integrated offer with other Group products, thereby increasing value for oste taliane as a whole

Financial ervices aims to further evolve its service model to improve the coverage of customers and maximise their value, by combining the traditional physical model with the opportunities provided by technological innovation he priorities of the trategic lan include growth in wealth management, thanks to the diversification of customer portfolios to optimise their risk-return profile, the integration of &C policies within the advisory model and a renewed focus on loans, with particular emphasis on the salary-backed loan segment, also thanks to partnerships signed with leading operators in the sector n addition, a commercial focus on the small business segment is expected

FINANCIAL OBJECTIVES		OPERATING OBJECTIVES
⦁ billion) ⦁	Revenue: €5 5 billion (2023: €5 2 B : €0 9 billion (2023: €0 9 billion)	⦁ otal financial assets: a rise to €624 billion from €581 billion in 2023, with increased penetration of life products ⦁ Loans disbursed: €3 4 billion (2023: €2 6 billion)

n nsurance ervices, oste taliane aims to establish itself as an insurance operator capable of serving all customers' investment and protection needs he

URA C RV C

priorities of the trategic lan include strengthening the leading position in Life nvestments & ensions, continuing to offer clients safe and at the same time more profitable and capital-efficient products, with increasing integration of G principles into investment policies Finally, the rotection segment's strategy envisages increasing profitability through the evolution of the modular offering and the integrated advisory model, while also capitalising on the recent acquisition of the et nsurance Group to increase access channels to the insurance offer (physical networks and third-party digital/insurtech channels)

2023-2028 ⦁ olvency Ratio: >200%

FINANCIAL OBJECTIVES OPERATING OBJECTIVES

⦁ Revenue: €1 9 billion (2023: €1 6 billion) ⦁ B : €1 6 billion (2023: €1 4 billion)

⦁ et profit: 2% CAGR in the period

• ⦁ Life nvestments & ension gross premiums: €22 0 billion (2023: €17 8 billion)
• ⦁ rotection gross premiums: €1 5 billion (2023: €0 8 billion)

5.2 POSTE ITALIANE'S SUSTAINABILITY STRATEGY

oste taliane's ustainability trategy consists of the G trategic lan and a set of ustainability olicies he main objective is the achievement of national and international targets for social and environmental development his trategy is consistent with oste

taliane's activities and business criteria, within the broader strategic framework defined by the Group he G trategic lan encompasses all the specific objectives and targets, both qualitative and quantitative, that the Group has set for the purpose of continuously improving its sustainability performance n addition, the policies adopted incorporate all the principles, qualitative objectives and different management methods, regulating in a synergistic manner the various issues that emerged from the materiality analysis and the areas required by Legislative Decree no 254/2016

MA R AL U A AB L Y H M FOR O AL A

oste taliane has developed a materiality analysis process aimed at identifying priority issues, based on the significance of their related impacts, to be included in the Group's ustainability trategy and to be formalised in terms of policies and targets

With a view to continuous improvement, in 2023 oste taliane continued with the approach initiated in 2021 and subsequently finalised in 2022, aimed at anticipating the application of the principle of double materiality envisaged by the Corporate ustainability Reporting Directive (C RD) before its entry into force15F ¹¹⁶, set for financial year 2024 herefore, the Group has maintained the alignment of its materiality analysis methodology to the 2021 update of the GR standards for impact materiality (inside-out perspective), taking into account the FRAG provisions, contained in the new

¹¹⁶ During 2023, the Company initiated an assessment process aimed at analyzing and evaluating the regulatory requirements under the Corporate ustainability Reporting Directive (C RD) and the disclosure requirements and K s under the uropean ustainability Reporting tandards ( R ) with respect to its sustainability reporting

sustainability standards16F ¹¹⁷ and the Double Materiality Guideline, although still in draft form, for financial materiality (outsidein perspective)

he process of defining the material topics, which was finally approved by the Board of Directors, consisted of the following three steps:

o identify current and potential positive and negative impacts, an in-depth scenario analysis was conducted on the Group's activities, its business relations, the sustainability context in which it operates and the expectations of its stakeholders his analysis took into account the provisions of regulatory sources and the main international sustainability guidelines, the trategic lan and the Group's risk management model, as well as the requirements of the main questionnaires prepared by G rating agencies and analyses of current industry trends

n the assessment phase, the materiality of the identified impacts was defined through the direct involvement of stakeholders Below is the list of impacts submitted for evaluation by the Group's stakeholders

PILLARS	MATERIAL TOPICS	IMPACTS
	Work with transparency	ncreased awareness of the relevance of compliance issues
Work with	and integrity	Compliance of its internal control system
transparency and integrity	Legality and incorporation of	Compliance with social and environmental standards along the value chain
	ESG criteria within the procurement	Raising supplier awareness of G issues
	process
	Staff training and	Developing employees' skills

¹¹⁷ he uropean ustainability Reporting tandards, developed by FRAG in anticipation of the C RD, were finally adopted by the uropean Commission on July 31, 2023 he final version of the Delegated Act with the text of the first set of " ector Agnostic" R s was published in the U Official Journal on December 22, 2023, with entry into force on January 1, 2024

Poste Italiane Group		Report on Operations at 31 December 2023
	development	mployee ngagement
	Staff welfare and	Work-life balance
People development	well-being	mployee satisfaction
	Relations with	nvolvement of social partners
	social partners	Respect for workers' rights
	Occupational	Accidents, injuries and occupational illness
	health and safety	Culture of safety
	Protection of	Awareness of human rights issues
Diversity and	human rights at	Affirmation of an inclusive corporate culture
inclusion	the Company	upporting parenting
	Equal career development	Gender pay gap
	opportunities
	Support for the	Well-being of citizens
	socio-economic	ocial and economic development of local communities
	development of local
Creating	communities
value for the country	Dialogue and	Opportunities for the country's development and growth
	transparency in	upporting institutions
	relations with the
	authorities
	Financial inclusion	Financial kills Development
		Digitalisation of financial services
	Environmental	roduction of building-related emissions
Green	impacts of real estate facilities	Consumption of natural resources and production of waste
transition	Environmental	roduction of logistics-related emissions

		Environmental	roduction of building-related emissions
	Green transition	impacts of real estate facilities	Consumption of natural resources and production of waste
		Environmental	roduction of logistics-related emissions
		impacts of	Consumption of natural resources and production of
		logistics	waste
		Quality and	Customer satisfaction
		customer	Modernisation of processes and services offered
		experience

Development of innovative logistics systems
ustainable growth of the country through its investing
ustainable growth of the country through its insurance

According to the inside-out perspective, the Company has examined the material current or potential impacts on people and the environment directly related to its activities, products and services, including activities upstream and downstream of its value chain in addition, from a financial materiality perspective, it considered the sustainability risks and opportunities that may positively or negatively influence future cash flows and thus create or erode corporate value in the short, medium or long term, affecting its development, performance and positioning

takeholder engagement

With the aim of contributing to the creation of shared value for the Company and all its stakeholders, oste taliane also integrates into its ustainability trategy the needs expressed by those directly and indirectly involved in the Group's activities Consideration of stakeholders' requests allows the Group to maintain a relationship of trust and transparency in the social and economic context in which it operates and, at the same time, strengthen its reputation

n order to identify all the stakeholders who influence or are in turn influenced by the process of achieving the Group's strategic objectives, oste taliane has conducted a thorough mapping of the categories of stakeholders with whom it interacts in the course of its activities, in accordance with the AA1000- takeholder ngagement nternational tandard ( ) he analysis enabled the identification of seven macro-categories of stakeholders, namely: hareholders and nvestors, Local Communities (trade associations, media, academia), Customers (consumer associations), ntities and nstitutions (regulators, Fondimpresa), uppliers (business partners), ersonnel ( oste taliane people, trade unions) and the nvironment

he latter are shown in the following table, which indicates the main methods of engagement and communication related to each of them

Poste Italiane's stakeholder engagement methods

CA GORY OF AK HOLD R	R C AL GAG M M HOD
hareholders and investors	⦁ hareholders' Meetings; Corporate Governance Report; financial reports and periodic presentations; roadshows and dedicated meetings; the Company's corporate website; press releases
Customers	⦁ Customer experience systems; periodic customer satisfaction surveys
ersonnel	⦁ nternal communication tools (intranet, newsletters, mailing list, ostenews, etc ); internal and external events for staff; periodic meetings; first- and second-level bargaining; periodic satisfaction surveys
uppliers and business partners	⦁ Dedicated meetings
ntities and nstitutions	⦁ Conferences; dedicated meetings; corporate communication; periodic communications; organisation of events
Local communities	⦁ Community projects; partnerships; press releases; sponsorships; donations; dialogue with local authorities; contacts during the launch of relevant projects, publication of documents, interviews, events
nvironment	⦁ ress releases; dedicated events; partnerships; collaborations; conferences

he Multistakeholder Forum 2023

he Multistakeholder Forum is one of the most effective tools to engage and establish dialogue with stakeholders he event, which takes place annually, represents a crucial opportunity for reflection and discussion on the Group's priority sustainability issues

he seventh edition of the Multistakeholder Forum, live streamed in order to ensure the widest possible participation, was attended by around 1,400 stakeholders, over 300 more than the previous year, and represented an important opportunity to exchange views with the Group's main stakeholders on strategies, sustainable development issues and the integration of these within the Company's projects defined in the trategic lan

During the event, participants took part in four focus groups related to the eight illars of ustainability n particular, the first Focus Group, mainly addressed to mployees, explored the " eople Development" and "Diversity and nclusion" illars; the second Focus Group, mainly addressed to uppliers and Business artners, ntities and nstitutions, Community and erritory and nvironment, focused on the " ntegrity and ransparency", "Green ransition" and "Creating value for the country" illars; the third Focus Group, conducted in nglish and aimed mainly at uppliers and Business artners, hareholders and nvestors, focused exclusively on the " ustainable Finance" illar, in order to examine the issue of integrating G factors within the Group's insurance and investment policies; the fourth Focus Group, aimed at Customers, focused on the "Customer experience" and " nnovation" illars

articipants in the Forum shared their opinions on material issues for the Company through a digital application accessible from smartphones and Cs that enabled the instant display of the results

he results of the process of engagement with the Group's main stakeholders showed that impacts related to the following issues were more relevant: nnovation and digitisation of products, services and processes, rotection of human rights in the Company, upport for the socio-economic development of the territory and qual opportunities in career paths from an inside-out perspective; nnovation and digitisation of products, services and processes, Quality and customer experience, taff training and development and Financial inclusion based on an outside-in approach

Materiality matrix

he materiality matrix, shown below, graphically represents the result of the process of identifying priority issues starting from the assessment of the materiality of the impacts related to them, according to a dual perspective: impact materiality and financial materiality ach of the 18 material themes is associated with an impact materiality value and a financial materiality value, obtained by multiplying the magnitude and probability of the individual impacts pertaining to the same material theme he order of priority of the topics was established on the basis of the values obtained and through the definition of a materiality threshold

his matrix constitutes an effective tool to support the Group's ustainability trategy and is the result of the process of alignment to the new GR provisions for the impact materiality perspective, which is also influenced by the FRAG provisions, contained in the R standards and the Double Materiality Guideline, although still in draft form, for the financial materiality perspective

Poste Italiane Group Report on Operations at 31 December 2023

Poste Italiane Group's materiality matrix

Description of material topics

n line with the requirements of the new GR tandard Universal 3, a list of priority material themes with a description of each theme is given below

MATERIAL TOPICS	WHAT THIS MEANS FOR POSTE ITALIANE
nnovation and digitisation of products, services and processes	Contribute to the modernisation of taly and digital and technological evolution through the development of new products and services and the adoption of digital technologies to be incorporated into products, services and business processes, in order to timely respond to changes in scenario, new customer needs and opportunities offered by social and environmental changes
Quality and customer experience	Respect implementation deadlines and procedures for activities (level of service and performance) and provide customers with a quality experience that goes beyond making use of a traditional product or service n addition, build a relationship of trust by activating customer engagement channels to be always informed on customers' expectations, needs and satisfaction regarding products and services offered, and correctly handle complaints
taff training and development	Guarantee our employees ongoing development of their knowledge and skills and the opportunity to reach their full potential through training courses aimed at ensuring growth and strengthening of know-how in line with the needs they and the market have expressed, also with a view to better managing business and organisational changes
Work with transparency and integrity	repare appropriate internal control measures and spread a corporate culture within the organisation based on integrity, professional ethics and honesty in order to build relationships of trust with its stakeholders and conduct its activities correctly and transparently in every single operation, especially in combating active and passive corruption

EMARKET SDIR
CERTIFIED

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

upport for the socio-economic development of local communities	Contribute to taly's socio-economic well-being through direct, indirect and induced impacts in local areas (e g in terms of GD and employment), and initiate or support social activities that respond to the needs expressed by society, including those identified through dialogue and collaboration with the third sector
Occupational health and safety	afeguard our people's health, safety and physical and mental integrity, also in terms of workplace quality, and foster the development of a robust in-company culture in compliance with the highest national and international standards in this regard
Financial inclusion	xtend the financial products and services offering to traditionally excluded categories, in order to guarantee access to services that are essential for economic livelihoods, and make the customer purchasing experience more aware via financial education initiatives, especially with regard to savings, investment, payments, pensions and insurance
rotection of human rights at the Company	Guarantee the protection of human rights and the promotion of non-discriminatory behaviours within the Group, including through compliance with recognised standards, incorporation of the risk of violation within the Group's risk assessment model, and development of diversity elements (in terms of differences in age, gender, knowledge and experience) which foster the development of a "corporate culture" and a response to new challenges and market opportunities
Cybersecurity, ecurity and rivacy	Guarantee the privacy of customers' data, protect intellectual property and provide an effective management system for security and cyber security in order to ensure business continuity, protect the information assets of the Company, customers and other stakeholders, and the security of transactions
nvironmental impacts of real estate facilities	pread a culture of respect for the environment and adopt concrete solutions for the efficient management of energy resources, water resources and waste, from a circular economy standpoint For example, procurement of renewable energy, installation of renewable energy production plants, building efficiency projects, organisation of separated waste collection, etc
taff welfare and well-being	rovide staff with modern, flexible working tools and models that respond to specific personal needs and ensure work-life balance (e g smart working initiatives, improved maternity and paternity arrangements, the provision of benefits in the field of healthcare, etc )
Legality and incorporation of G criteria within the procurement process	rocurement processes based on pre-contractual and contractual behaviours aimed at achieving complete respect of legality and transparency, and adoption of selection, assessment and monitoring criteria to measure the social and environmental performance of suppliers, in order to guarantee high levels of functionality and quality for supplies and mitigate G risks
qual career development opportunities	nsure equal opportunities in the development of individual careers, by promoting career development paths for all employees regardless of their personal characteristics (age, gender, sexual orientation, disability, ethnic origin, nationality, political opinions and religious beliefs) in accordance with the principles of impartiality and non-discrimination
Relations with social partners	Consider dialogue with personnel and trade union representatives as essential in finding shared solutions relating to issues that can have significant impacts on the organisation, the business and above all human capital, a vital corporate asset for the Company
nvironmental impacts of logistics	Monitor the environmental impact of logistics activities and encourage a process of change aimed at safeguarding the environment by adopting lower-impact solutions regarding the provision of postal and logistics services, including: the use of hybrid/electric vehicles, rationalisation of distances travelled, correct waste management, development of recharging infrastructure for customers' vehicles
Dialogue and transparency in relations with the authorities	romote systematic and transparent dialogue with national and local authorities, based on a quest for shared solutions that makes it possible to respond to communities' social needs, positively affecting the social fabric in the areas in which the Company operates and, at the same time, increasing competitiveness and business continuity
ntegration of G factors into investment policies	ncorporate G aspects within the investment process in order to better manage non financial risks and consider new investment opportunities that also support sustainable development and a low-carbon future
ntegration of G factors into insurance policies	ncorporate G aspects within insurance policies, insurance product development strategies and customer communications

nterconnection between material issues and metrics

he integrated approach adopted by oste taliane takes into account the combination, correlation and interdependence of issues that have a material impact on the Group's economic, social and environmental performance n this contest, the decision-making process, which includes specific actions aimed at the pursuit of sustainable success, considers the connections and interdependencies between all factors that influence the Company's ability to create sustainable longterm value o this end, in accordance with the indications of the nternational < R> Framework, the interconnections between the material issues for oste taliane and the main measurement metrics adopted are shown below

H GROU ' U A AB L Y OL C

he incorporation of sustainability within the Company's regulatory system has led to the definition of the following policies

Sustainability policies adopted by Poste Italiane

POSTE ITALIANE GROUP POLICIES	POLICY OBJECTIVES
ax trategy	he strategy is arranged as a set of principles and rules aimed at promoting dissemination of the values of honesty, fairness and compliance with tax regulations, thereby encouraging the development of collaborative and transparent conduct towards the tax authorities and third parties, in order to minimise any substantial impact in terms of either tax or reputational risk
Occupational Health and afety olicy	he policy sets out the principles and methods implemented by the Group to protect and promote the physical and mental well-being of people through prevention, a culture of safety and implementation of management systems
ntegrated olicy	he olicy contains a commitment to promptly comply with current regulations: O 37301:2021 for compliance management, U O 9001:2015 for quality control, O 45001:2018 for occupational health and safety, O 37001:2016 to prevent practices that may result in alleged and/or confirmed crimes of bribery, O/ C 27001:2013 and O/ C 20000-1:2018 respectively with respect to the management of data security, and for the management of systems which support company processes

Group policy on community initiatives	he olicy contains a commitment to respond to the social needs of local communities and the country as a whole with integrity and transparency, in accordance with procedures that aim to ensure the effectiveness of supported initiatives, while avoiding any potential conflict of interest
olicy on personal data protection	he oste taliane Group olicy shows that personal data protection is a fundamental value that every Group Company must adhere to in its daily activities he Group protects and promotes the protection of personal data and the rights of data subjects through information and awareness campaigns and policies for data protection
Group policy on environmental sustainability	he olicy sets out the general principles, objectives and methods for managing the Group's environmental impact and confirms oste taliane's commitment to promoting efficient use of natural resources and focusing on seeking innovative solutions to protect the environment in its value chain
Responsible investment policy of the oste Vita Group	n its responsible investment policy, oste Vita sets out principles that enable inclusion of G elements in the management of its investment activities, making a positive contribution to the impact issuers in its financial portfolios have on the community, and concrete adherence to principles and guidelines recognised at national and international level regarding the incorporation of sustainability criteria within traditional investment processes
Responsible insurance policy of the oste Vita Group	n its responsible insurance policy, oste Vita defines principles that enable inclusion of G aspects in the management of its insurance activities, and concrete adherence to principles and guidelines recognised at national and international level regarding the incorporation of sustainability criteria within traditional insurance processes
Responsible nvestment olicy of Banco osta Fondi pA GR	n its responsible investment policy, Banco osta Fondi GR sets out principles that enable inclusion of G elements in the management of its investment activities, making a positive contribution to the impact counterparties in its financial portfolios have on the community, and concrete adherence to recognised principles and guidelines he olicy was updated in January 2021
Guideline for investment in sensitive sectors of Banco osta Fondi GR	he Guideline for investment in sensitive sectors of Banco osta Fondi GR defines measures to identify, assess and monitor exposure to activities that present a material intrinsic risk from an G point of view, thus enabling environmental, social and governance aspects to be incorporated into the investment process
Guidelines on the exercise of voting rights and engagement activities of Banco osta Fondi GR	he GR's Guideline defines measures and procedures to exercise voting rights in accordance with established national and international reference principles and to promote the proper management of G issues through beneficial dialogue with issuers of securities in their financial portfolios
olicy Guideline for Managing Dialogue with oste taliane pA shareholders – ngagement olicy	he objective of the olicy is to regulate the management of dialogue with investors and other market participants adopted by oste taliane, with reference to the many forms of engagement that the Company puts in place, whether these concern activities normally managed by the relevant corporate functions (e g website maintenance), or involve direct dialogue with members of the Board of Directors (" hareholder-Director ngagement")
Guideline for investment in sensitive sectors of the oste Vita Group	he Guideline for investment in sensitive sectors of oste Vita pA defines measures to identify, assess and monitor exposure to activities that present a material intrinsic risk from an G point of view, thus enabling environmental, social and governance aspects to be incorporated into the investment process
Guidelines on the exercise of voting rights and engagement activities of the oste Vita Group	he Company's Guideline defines measures and procedures to exercise voting rights in accordance with established national and international reference principles and to promote the proper management of G issues through beneficial dialogue with issuers of securities in their financial portfolios

Diversity olicy for administrative and auditing bodies of oste taliane	he document sets out recommendations regarding aspects of diversity of the members of the Board of Directors and of the Board of tatutory Auditors, such as age, gender, ethnicity, geographical origin, training and professional experience
Group policy for the protection of Human Rights	he policy sets out a clear approach to the issue of human rights, which is broader than legal requirements and enables monitoring and management of risks and opportunities relating to all forms of human rights, and also confirms the Group's commitment to pursuing socially responsible investment and management activities
Diversity and nclusion olicy	he olicy indicates that the oste taliane Group is committed to supporting the values of diversity and inclusion through the adoption of corporate, organisational and management mechanisms based on respect for people's rights and freedom
	o this end, our plan of action aims to develop the ways in which diversity issues are addressed, moving from an approach designed to protect and integrate diversity to a proactive strategy to overcome cultural stereotypes and to tackle the factors that prevent people from being included in the labour market
Guideline on Competition and Consumer rotection Compliance	he Guideline aims to ensure compliance with competition and consumer protection rules, to reinforce awareness of the importance of the relevant regulations, to consolidate an operational and control environment aimed at mitigating the risk of anti-trust and anti-competitive offences, to provide a guide to prevent actions, behaviours and omissions that violate competition and consumer protection regulations, and to outline monitoring tools to identify possible violations
upport for Active arenting olicy	he purpose of the olicy is to provide a framework to support the female condition in the Company, to help women, before and after the maternity period, with adequate support and development paths through anticipatory plans to enable them to feel fully empowered and supported in expressing their personal and professional abilities he document aims to outline a people development and management strategy, implement a modern maternity management model and introduce innovative tools for consistent and harmonious support for active parenthood, thereby integrating oste taliane's existing human resources development processes
LGB Q+ nclusion olicy	he olicy intends to promote policies, solutions and measures capable of improving working conditions by means of inclusive processes for each individual, valuing the different expressions of gender identity of each person, including those of people in gender transition and, in general, to prevent and counter all forms of direct/indirect discrimination related to affective/sexual orientation he inclusion of LGB Q+ people is connected to the value of the centrality of the person, the protection of their identity and uniqueness and, in general, their way of being, with an impact on the broader concept of individual and organisational well-being

The Group's Environmental, Social and Governance (ESG) Strategic Plan

oste taliane's G trategic lan consists of 8 pillars related to the relevant G areas for the Group he materiality analysis, held during the Multistakeholder Forum in December 2023, enabled the identification of priority topics on the basis of the significance of their related impacts, to be included in the Group's ustainability trategy ach illar is based on specific objectives and targets that contribute to the achievement of the United ations ustainable Development Goals ( DGs) For further details on the objectives, management methods and performance achieved in the

hrough the Strategic Plan, oste taliane aims to achieve responsible growth and accompany the country's path of sustainability and social inclusion n defining the investment choices of the Plan, the contribution of each intervention to the Group's 8 Sustainability Pillars was also assessed

illars of the Group's G trategic lan, please refer to Chapter 7 "Value Creation"

he Company is committed to creating shared value on a daily basis, also in relation to the achievement of the DGs, and aims to guide the country towards carbon neutrality by 2030 n particular, through initiatives such as the Green Challenge, which includes entering the energy market with an offer 100% from renewable sources and offsetting CO2 emissions through the development of ad hoc tools, oste taliane is able to best communicate the innovative green business philosophy adopted by the Group, i e a holistic approach that incorporates all oste taliane's products, services and processes

Annual Report 2023

oste taliane, being an integral part of a network of associations operating nationally and internationally that aims to seek continuous stimuli and opportunities for discussion on sustainability issues, is able to propose a strategy in step with the evolution of the global context on G matters

U Global Compact: the largest corporate sustainability initiative in the world An appeal to companies to align their strategies and operations with universal principles in the areas of human rights, labour, environment and anti-corruption and to take actions that promote society's objectives t is a universal voluntary initiative to implement the principles of sustainability and adopt measures to support the goals of the United ations
rinciples for Responsible nvestment: the R s are a set of six principles that set out the
main actions to be taken by investors and provide specific tools (e g frameworks, guidelines) aimed at incorporating environmental, social and governance ( G) factors
within traditional investment policies
rinciples for ustainable nsurance: the s are a voluntary initiative, supported by the
United ations, aimed at addressing risks and opportunities relating to G issues in the
insurance sector Launched in 2012, the s are aligned and complement the principles
of the U Global Compact
UN Women: is the U entity dedicated to gender equality and the empowerment of women
and was established to accelerate progress in meeting their needs worldwide UN Women
supports U member states as they define global standards to achieve gender equality and
work with governments and civil society to design the laws, policies, programmes and
services needed to ensure that the standards are effectively implemented and truly benefit
women and girls around the world
C R xhibition: is the most important event in taly dedicated to sustainability t is an
opportunity to share ideas and find common paths through dozens of meetings, hundreds
of speakers and thousands of visitors he exhibition allows getting to know the companies
that have made sustainability a strategic driver, meeting young people, helping build the
future of C R he exhibition takes place for two days, which are intense thanks to a rich
cultural programme, many stimulating appointments, many opportunities for networking
odalitas: established in 1995 on the initiative of Assolombarda, this foundation was the
first organisation to promote corporate sustainability in taly, and aims to contribute to the
development of the role of companies as social as well as economic players, and putting
the strengths of corporate culture at the service of civil society A unique organisation in
taly, it brings together the commitment of more than 100 leading companies and a group
of volunteer managers, and is a reference point for companies that consider sustainability
to be a vital strategic dimension t has gained respect as a partner of uropean institutions
for implementing the sustainability agenda in taly, and stands out for its ability to implement
multi-stakeholder initiatives for generating shared social value
Anima per il ociale: an association that brings together a group of managers and
companies with the mission of spreading the culture of corporate social responsibility and
ustainability among local companies, at an economic, social and environmental level he
partnership enables the Group to access the association's network- consisting of large
companies, associations, non-profit organisations, bodies and authorities - in order to keep
up to date through monitoring, communication and training activities and by participating in
Corporate ocial Responsibility initiatives and events

MAIN RELATED TYPES OF CAPITAL

Annual Report 2023 Poste Italiane Group	Report on Operations at 31 December 2023
	C R Manager: a network made up of professionals working in all kinds of organisations (companies, business foundations, trade bodies, the ublic Administration, non-profit entities) who manage social, environmental and sustainability issues relating to business activities his network of association provides the opportunity to participate in conferences held, access documents and studies prepared by the network and share best practices with the other members
	Valore D: founded in 2009, this is the first association of companies to promote women's diversity, talent and leadership in support of greater gender balance within its 150 member organisations his collaboration enables oste taliane, as a supporting member since 2012, to actively participate in programmes and workshops organised by the association, as well as to take part in benchmarks and the sharing of best practices regarding the issues of diversity management, achievement of work-life balance and welfare
	A H : an organisation that has been promoting the integration of disabled people in schools, employment and companies via the use of C technology for over 30 years he collaboration with oste taliane has been consolidated over several years, in relation to participation in programmes for the inclusion and enhancement of disabled people in corporate environments

5.3 POSTE ITALIANE'S SUSTAINABILITY PATH

Being an essential element in the Group's strategic and financial choices, sustainability is an integral component of oste taliane's activities, processes and strategy

Over the past few years, the Group has embarked on an ambitious path to consolidate its ustainability trategy, recognising its importance his strategy, in fact, targets the creation of shared value for oste taliane's stakeholders and the improvement of its own reputation

he Group is therefore committed to disseminating a corporate culture focused on sustainable issues, which are concretely implemented according to three main guidelines - Reporting, trategy and Governance From the very beginning, this commitment has allowed the achievement of important evolutionary changes and, at the same time, has enabled oste taliane to hit a number of prestigious national and international milestones

Poste Italiane Group Report on Operations at 31 December 2023

he value of the reputation and the ustainability ndices in which oste taliane is present

n the current context, the creation of value is increasingly based on intangible resources; therefore, oste taliane considers reputation to be a fundamental asset capable of guiding the decisions of its stakeholders A good corporate reputation not only reinforces trust in the Company but also increases its competitiveness n line with this objective, the Group has decided to follow up on its commitment by confirming its traditional vocation of being close to the territory and the local community, even more so at a difficult time such as that brought about by the current national and international context

hanks to oste taliane's significant commitment and the effectiveness of the strategic choices made to consolidate the Group's image and reputation, the Company has received numerous awards and recognitions in recent years

ESG Awards and Recognitions

Top Employer Italia 2024 Brand Finance Global 500

oste taliane is op mployer talia 2024, winning said award for the fifth consecutive year he prestigious award was given to oste taliane by the op mployers nstitute, the global certification body for excellence in HR practices oste taliane re-enters the Brand Finance Global 500 he ranking, which includes the 500 brands with the highest financial value worldwide, places oste taliane in 231st place in 2024, jumping 52 places from the previous year

Largest company by number of employees to receive "EQUAL-SALARY" certification

he certification, issued by " QUAL- ALARY", an independent wiss non-profit organisation in cooperation with the University of Geneva, allows companies to verify and publicise pay equity, for equal work, within the company organisation oste taliane is the first among the companies in the F M B insurance sector and the largest company by number of employees to have received the " QUAL- ALARY" certification for the strict application of remuneration policies without gender bias, demonstrating its commitment to creating an inclusive working environment and a corporate culture based on respect and equal opportunities in career paths

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

Certification for gender equality UNI/PdR 125:2022 Postepay Digital Product of the year Poste Italiane in 4th position in the Webranking Europe 500	oste taliane obtained U / dR 125:2022 certification for its ability to ensure gender equality in the workplace he certificate was issued by MQ, an international certification body, recognising oste taliane's ability to guarantee an effective level playing field in the design, direction, control, coordination and delivery of ostal, Logistics, Financial, nsurance and Digital ervices n 2023, " ostepay Digital" received the " lected roduct of the Year 2023" award in the "Financial ervices" category oste ay Digital is the payment solution for everyone, enabling payments in shops and on-line via smartphone his award is an important recognition of oste taliane's innovative capacity: totally digital, the product can be requested in a few minutes online and via App or D n the twenty-seventh uropean edition of the "Webranking urope 500" research, conducted by Lundquist in collaboration with the wedish company Comprend, on the quality and transparency of companies' digital communication activities, oste taliane was placed fourth
NC Awards rewards Poste Italiane's advertising campaigns	At the C Awards 2023, oste taliane was honoured for its advertising campaign for oste nergia, the offer that marked its entry into the electricity and gas market he prize, which celebrates the best talian digital communication projects, was awarded in the category " ntegrated Digital Campaigns - ervices of ublic nterest"
Poste Italiane awarded at Media Key Awards	oste taliane won another prestigious award, the 20th O Key Award at the Media Key Awards n particular, the oste nergia campaign won the special "Best ngagement Key Award" as the best integrated campaign
2023 Oscar di Bilancio (Financial Statements Oscar)	oste taliane was awarded first prize in the "Large Listed Companies" category in the 59th edition of the Oscar di Bilancio, promoted by F R , Borsa taliana and Università Bocconi he Group has distinguished itself for the completeness, transparency and innovation of its communication of its financial results to the market and stakeholders
Sustainability Report Award	oste taliane was awarded first prize in the "Diversity & nclusion" category at the fifth edition of the " remio al Report di ostenibilità" ( ustainability Report Award), promoted by the Department of conomic and Business ciences of the University of avia, distinguishing itself for its mention of activities supporting diversity and inclusion in the company and a healthy gender balance in top positions
Impact Award	oste taliane won the " remio mpatto" ( mpact Award), the initiative promoted by the Milan C R and ocial nnovation rade how, which recognised the company's social value and ability to plan investments in the fleet overhaul plan, combining the financial framework with sustainability

n 2023, oste taliane affirmed its presence in important sustainability indices, which are valid parameters both in terms of communicating results to stakeholders and for assessing and, if necessary, improving the Group's internal performance

ustainability indices, in fact, are used for a twofold purpose: on the one hand, they are used by shareholders and stakeholders as a reference tool for evaluating the Company's sustainability performance compared to other market players, and on the other hand, they are used for internal analyses conducted by company management in order to develop the Group's sustainable investment plans

Sustainability indices in which Poste Italiane is present

n 2023, oste taliane took first place globally in & Global's Corporate ustainability Assessment, within the " nsurance" sector, achieving a score of 85/100 n 2023, oste taliane consequently confirmed its presence in the Dow Jones ustainability World ndex (DJ ) and in the more selective Dow Jones ustainability urope ndex for the fifth consecutive year
oste taliane was awarded a rating of 4 2 by the F Russell G Rating agency oste taliane has been included for the fifth year running in the prestigious F 4Good sustainability indices he F 4Good urope and F 4Good Developed indices include companies that stand out for their transparent management and application of G
criteria he Company stood out in particular for its ocial and Governance performance
he Company is positioned within the "Leadership" band with an A- rating in the annual classification drawn up by CD (formerly the Carbon Disclosure roject) for the fourth consecutive year n particular, oste taliane distinguished itself in the area of risk and opportunity disclosure, for its risk management system and for defining business strategies that include climate-related objectives
n 2023, oste taliane obtained a score of 79 out of 100 in the G Overall core of Moody's, consolidating its presence in the uronext Vigeo- iris World 120 index and in the uronext Vigeo urozone 120 and urope 120 regional indices
As of October 2021, and confirmed also in 2023, oste taliane is included in the new uronext M B G index, ranking first among the best performing companies he M B G represents the first blue-chip index for taly dedicated to sustainability, combining elements of economic performance with nvironmental, ocial and Governance ( G) values
As of ovember 2022, also confirming its position in 2023, the Group entered the gender equality index " uronext quileap Gender quality urozone 100", becoming one of the 100 companies in the urozone that have demonstrated a strong commitment to improving gender equality in the workplace
n February 2024, the Company was awarded an G Risk Rating of 16 9 (Low risk) by ustainalytics, within the sub-industry Regional Banks
n 2024 oste taliane was recognised by ustainalytics as a top G performer, earning the 2024 ndustry op-Rated Badge
For the fourth year running, oste taliane has been confirmed in the Bloomberg Gender quality ndex (G ), the world's leading gender equality index he Company improved its performance compared to the previous year, once again scoring well above the average score of the companies evaluated within the G , which includes 484 companies, belonging to 11 manufacturing sectors with a combined market capitalisation of U D 16 trillion, based in 45 countries and regions

Annual Report 2023

	n 2023, oste taliane was assessed by quileap for its performance in the area of gender equality he Group has been recognised in particular for its commitment to supporting paternity and maternity, for obtaining the qual alary certification, and for its policies on occupational safety and employee protection
Poste Italiane S.p.A nsurance ndustry Top 1% & Global Corporate ustainability Assessment (C A) core 2023 & Global C A core 2023: 85/100 core date: February 7, 2024 he & Global Corporate ustainability Assessment (C A) core is the & Global G core without the inclusion of any modelling approaches osition and scores are industry specific and reflect exclusion screening criteria Learn more at https://www spglobal com /esg/csa/yearbook/methodology/	oste taliane has confirmed its presence in the 2024 edition of & Global's ustainability Yearbook, which assesses the G performance of major companies globally he Group is in the top 1% of the 9,400 companies evaluated for entry into the ustainability Yearbook, falling into the " op 1% & Global G core 2023" bracket
	n 2023, the oste taliane Group confirmed its rating of 1, considered the highest rating, in the areas of nvironment, ocial and Governance as part of the nstitutional hareholder ervices nc ( )
	n 2023, oste taliane confirmed its corporate sustainability performance and leadership in the sector by earning an "AA" rating from M C , one of the leading agencies, for the huge progress made with regard to the social aspect
	n 2023, oste taliane maintained its presence in the OXX Global G Leaders ndex, the index that includes around 400 leading global companies in terms of corporate sustainability, which is structured from the basket of companies belonging to the OXX Global 1800
	oste taliane is among the top three companies in the ranking of the " ntegrated Governance ndex ( G ) 2023", the index that measures the degree of integration of sustainability policies in corporate strategies
	oste taliane is awarded the prestigious latinum medal by coVadis, which assesses the sustainability of companies along the supply chain, further improving its position from last year's Gold medal by placing within the top 1% of companies assessed by the team of

international experts

Poste Italiane Group Report on Operations at 31 December 2023

6. RISKS AND OPPORTUNITIES

• O AL A ' GRA D R AL CO ROL A D R K MA AG M

Y M

• R K A OC A D W H MA R AL O C A D MA AG M M HOD
• • O AL A ' COMM M O MA AG G HUMA R GH R K
• MA AG G CL MA CHA G R LA D R K A D O OR U
• MA AG G M RG G R K A D H R LA D O OR U

6.1 POSTE ITALIANE'S INTEGRATED INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM

n a context characterised by a high level of operational and regulatory complexity and the need to compete more and more efficiently in the reference markets, risk management and the related control systems take on a central role in the decision-making processes, with a view to creating long-term value to the benefit not only of the shareholders, but also in consideration of the interests of the other stakeholders of relevance to the company

he oste taliane's nternal Control and Risk Management ystem ( C GR) is a combination of tools, procedures, rules and organisational structures, designed to ensure that the business is managed in a way that is sound, fair and consistent with the corporate objectives, and to pursue sustainable success, through an adequate definitions of players, duties and responsibilities of the various corporate bodies and control functions as well as through the identification, measurement, management and monitoring of the main risks, and through the structuring of adequate reporting lines to expedite the flow of information

his system is a fundamental element of oste taliane's corporate governance system, as it enables the Board of Directors to guide the Company in its pursuit of long-term value creation, defining the nature and level of risk compatible with its strategic objectives, and including in its assessments all elements that may be relevant to sustainable success n particular, in line with the main leading practices that place particular emphasis on the integration of sustainability into strategies, risk management and remuneration policies, oste taliane's C GR aims to contribute to the Company's sustainable success by defining G roles and responsibilities, information flows between the players involved in the internal control system and towards corporate bodies, and the methods of managing the related risks Moreover, in order to achieve this objective, the Company has decided to promote dialogue with the relevant stakeholders, in order to ensure a constant exchange of views on business strategies and their implementation

n line with statutory requirements and the related best practices, the C GR consists of three levels of control and involves a range of actors within the organisation he first level controls identify, assess, manage and monitor the risks within their competence in relation to which they identify and implement specific treatment actions aimed at ensuring the correct performance of the operations he second-level control units, whose role consists primarily of defining risk management models and carrying out monitoring activities, play a key role in the integration and overall functioning of the nternal Control

MAIN RELATED TYPES OF CAPITAL

and Risk Management ystem he third level of control, managed at oste taliane by the nternal Auditing function, provide independent assurance on the adequacy and effective operation of the first and second level of control and, in general, on the C GR

C GR assurance activities

he nternal Auditing function, in accordance with internal provisions, international professional standards and the mandate assigned to it, performs third-level audits on the oste taliane Group's significant processes in order to express an opinion on the adequacy of the internal control system, i e on the Company's ability to contain the risks that threaten the achievement of corporate objectives

he action of the nternal Auditing function for the year 2023 continued in line with the approach adopted in past years and was inspired by the following strategic lines:

• safeguard the achievement of the objectives of the Business lan and ustainability;
• support Group Governance;
• promote value creation, efficiency and agile leadership

At its meeting of 22 February 2023, the Board of Directors, after consulting the Risk Control Committee and the Board of tatutory Auditors, examined the C GR 2022 valuation Report and approved it he Report, which has been prepared in accordance with the requirements of the Corporate Governance Code for listed companies and supervisory instructions, has taken account of the results of audits carried out in 2020 on the basis of the Audit lans of all the Audit functions involved and the general framework of the oste taliane Group's C GR, considering the impact of organisational changes adopted, developments and events during the year he Report provides an overall assessment of the oste taliane Group's nternal Control and Risk Management ystem in terms of " ositive Assurance", noting that, on the basis of the findings at the date of the report and for the period covered by the report, the system is, on the whole, adequate to mitigate the risks that threaten the pursuit of the Group's objectives

At the same time, the Report provided a process-by-process representation of the main audit findings, the various contributions to strengthening the C GR, and a summary of the internal control activities carried out during the reporting year

On 22 February 2023, oste taliane's Board of Directors also approved the 2023 Audit Plan of the nternal Auditing function, which was prepared , on the basis of a consolidated methodological approach, according to a systemic assessment of the level of potential risk of the main processes (including risks pursuant to Legislative Decree no 231/01) consistent with the nterprise Risk Management ( RM) framework and corporate objectives he 2023 Audit lan was set up to provide assurance to the Governing and Control Bodies, as well as to support management on internal control issues his approach ensures an adequate and gradual coverage over time of the processes referable to the ubsidiaries of the oste taliane Group, while guaranteeing compatibility and consistency with international standards and best practices on internal control

he lan's main strategic orientations include:

• promote the alignment of the Control ystems of the ubsidiaries to the standards of the arent Company;
• strengthen first-level oversight of ustainability objectives;
• assisting the Audit functions of upervised ubsidiaries

he Audit lan, on the basis of the reference regulatory developments and company dynamics, also considers in an integrated manner the risks pursuant to Legislative Decree no 231/01 and expresses the levels of forecast coverage, in a rolling logic, for the three-year period 2021 - 2023 of the processes of oste taliane, of the non-supervised oste Group Companies, of Banco osta and of the supervised Group Companies, guaranteeing overall high three-year coverage levels for more than 96% of the processes in the Audit Universe (continuous audit coverage of 24%, high coverage of 39% and average coverage of 33%), many of which are subject to regulatory or supervisory constraints

he areas involved in the 2023 lan include the provision of nsurance, Financial and ransactional products/services (with audits at 1,380 facilities), as well as ostal and Logistics processes (around 100 facilities) he planned activities also covered the main resource management processes, including (with 17 audit activities on processes/applications), real estate (4 structures) and purchasing (5 Group companies), human resources (6 structures), administrative-accounting processes (15 structures), dispute management processes (6 structures) and various areas of compliance (20 structures) he activities foreseen in the 2023 Audit lan were carried out ensuring the full saturation of the function's resources

n order to enhance the effectiveness of the monitoring of the Group control system, the nternal Auditing function has further expanded the verification activities to be carried out on Group companies without their own internal auditing function n continuity with the logic adopted in recent years, oste taliane's nternal Auditing function has signed implementation agreements with the most significant Group companies that do not have their own internal auditing function, i e DA xpress Courier, oste Air Cargo rl and ostel pA n addition, in order to strengthen the effectiveness of the Group's control system and, as mentioned above, strengthen the support towards the Auditing functions of the upervised ubsidiaries, new implementation agreements were formalised with the companies exive and oste ay

Risk management and risk assessment model

oste taliane has adopted a Risk Management model based on the nterprise Risk Management ( RM) framework, with the aim of providing an organic, integrated vision and an effective, standardised response to the risks to which the Group is exposed he Group ustainable Development, Risk and Compliance function (" RCG") is responsible for ensuring that these objectives are met his is primarily done through the definition of an integrated risk management process that relies on the coordinated involvement of all the actors in the nternal Control and Risk Management ystem, above all the specialist forms of second-level control, the use of standardised models and metrics based on Group-wide criteria, and the design and implementation of shared tools for assessing and managing risk n this latter regard, the Group implemented an integrated Governance, Risk and Compliance (GRC) platform in 2018 to support the integrated risk management process his tool assesses and manages operational risks, in accordance with Legislative Decree no 231/01, of fraud, security, strategic, G, reputational, fiscal, physical security, ntegrated Compliance, privacy and corruption as well as compliance with the rules applicable to financial and payment services Furthermore, during 2023 the platform was further expanded through evolutionary implementations and extension of functionality in relation to the already existing modules n addition, further work was carried out that strengthened and extended the application integration aspects between the specific GRC system and other systems in the company his is the tool that has enabled the Group to maximise integration of the risk management process, ensuring that risk assessment methods are shared across all the specialist second-level control functions At the same time, it has improved communication with senior management and corporate bodies and between the various control functions, minimising the risk of inadequate or redundant information

Below are the main risk categories associated with the oste taliane Group's activities, as identified in the Group's Risk Model

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

With specific reference to the assessment of oste taliane's main risks, in addition to the customary activity of analysing the internal context, particular attention was paid to the external context, also in consideration of the country's general objectives for a sustainable economic recovery, as well as the current geopolitical context characterised by strong instability, also in light of the humanitarian and energy crisis caused by the conflict between Russia and Ukraine n particular, the risk assessment activities first focused on the analysis of risks and opportunities related to the management of material topics, and then, on the basis of this analysis, there was an in-depth examination of some types of risks that may have a transversal impact on these topics, such as climate change, human rights protection and emerging risks n particular, with reference to the different material topics, the following were analysed:

he main risks for oste taliane were analysed taking into consideration the forms of financial and non-financial capital that characterise its business model Furthermore, these analyses were conducted by adopting the common metrics defined by the World conomic Forum, taking into account their impact on the achievement of the ustainable Development Goals n particular, each risk was classified on the basis of these metrics, also highlighting their correlation with oste taliane's sustainability pillars and the respective material topics An example of such assessment activity is given in the paragraph on emerging risks.

Poste Italiane Group Report on Operations at 31 December 2023

6.2 RISKS ASSOCIATED WITH MATERIAL TOPICS AND MANAGEMENT METHODS

n order to ensure that the environmental, social and governance aspects are effectively integrated into the company strategy and processes, an analysis was conducted of the risks associated with the material topics identified, specifying the stakeholders involved, the impact on oste taliane and its stakeholders, the main management methods adopted by the Group and the related financial and non-financial capital

Non-financial risks associated with material topics and management methods

the oste taliane

taliane pA and of Group Companies

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 LLAR MA R A L O C R K V STAKEHOLD ERS O AL M AC O O AL A O AL M AC O AK HO LD R MA MA AG M M HOD O AL M AC O CA AL Development ystem taff welfare and well-being nadequate planning and/or implementation of staff welfare and well-being programmes oste taliane people • trategic • G • Health and safety • Quality of life, wellbeing • taff engagement programmes (e g oidi oste channel, postenews, etc ) • ncentivisation of the use of remote working tools • Financial and non-financial benefits for personnel Relations with social partners Labour union disputes Labour unions; non-recognised workers' organisations; financial community • conomi c • trategic • Operatio nal • Reputatio nal • conomi c • Health and safety • Human rights • Quality of life, wellbeing • Constant dialogue with labour union representatives • mplementation of restructuring projects in compliance with the regulatory framework ( ational Collective Labour Contract and laws) which is characterised by governable social impacts • Management of resources in line with legal requirements, policies and Company procedures Occupation al health and safety Accidents/workp lace injuries involving employees or contractors oste taliane people • conomi c • trategic • Reputatio nal • Operatio nal • Complian ce • Health and safety • Analysis and optimisation of occupational health and safety organisational models (drafting Risk Assessment Document, providing training, etc ) • xtension of production models to operational sites (e g lean manufacturing) • OH M certification in the production units of both oste

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 LLAR MA R A L O C R K V STAKEHOLD ERS O AL M AC O O AL A O AL M AC O AK HO LD R MA MA AG M M HOD O AL M AC O CA AL rotection of human rights at the Company ossible discrimination against oste taliane employees (e g gender, age, political or sexual orientation, marital status, etc ) oste taliane people • trategic • Reputatio nal • G • Human rights • pecific organisational responsibility for diversity and inclusion • dentification of possible training initiatives to create "culture" for all development • ntroduction of control mechanisms for the protection of human rights, equal opportunities, diversity and inclusion qual career developme nt opportuniti es Lack of transparency in communication and application of objective assessment drivers in employees' career paths oste taliane people; Labour Unions; onrecognised workers' organisations • trategic • Reputatio nal • Human rights • Quality of life, wellbeing • ntroduction of control mechanisms for the protection of human rights, equal opportunities, diversity and inclusion • romoting an inclusive business culture aimed at guaranteeing equal opportunities are respected • Ongoing dialogue with mployees upport for the socioeconomic developme nt of local communitie s ensions with local communities Local authorities • trategic • Reputatio nal • Quality of service • conomi c • Constant structured dialogue with bodies and authorities and agreed local community engagement initiatives Dialogue and transparen cy in relations with the authorities Failure to take into account authorities' expectations ndependent regulatory and/or supervisory authorities; uropean and international authorities; national authorities; consumer and trade • trategic • Reputatio nal • conomi c • Constant structured dialogue with bodies and authorities and agreed local community engagement initiatives

associations

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 LLAR MA R A L O C R K V STAKEHOLD ERS O AL M AC O O AL A O AL M AC O AK HO LD R MA MA AG M M HOD O AL M AC O CA AL Financial inclusion nsufficient consideration regarding access to financial services by specific customer categories (e g the elderly, foreigners, etc ) Financial Community; customers; ntities and nstitutions • trategic • G • conomi c • Constant structured dialogue with bodies and authorities and agreed local community engagement initiatives • Digital and postal financial education programme nvironme ntal impacts of logistics nvironmental externalities of logistics activities (e g production of polluting emissions) uppliers and business partners; the environment • trategic • G • Health and safety • Making the ostal, Communications and Logistics fleet green, partly with the aim of increasing load capacity • Development of the delivery network (e g increase in the number of afternoon delivery lines, introduction of deliveries to lockers, ost Offices and thirdparty networks, smart letter boxes) • pecific organisational responsibility for the management of the company fleet nvironme ntal impacts of real estate facilities ncreased emissions from real estate management (e g energy management, waste management, etc ) he environment; oste taliane people • conomi c • trategic • Reputatio nal • G • Health and safety • pecific organisational responsibility for management of real estate • Adoption of energy efficiency solutions for real estate assets and use of renewables (smart building, L D , photovoltaic panels lighting, ) • mplementation of the nvironmental Management ystem for Group companies

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 LLAR MA R A L O C R K V STAKEHOLD ERS O AL M AC O O AL A O AL M AC O AK HO LD R MA MA AG M M HOD O AL M AC O CA AL Quality and customer experience Deterioration in the levels of quality provided and increases in the number of complaints Customers; independent regulatory and/or supervisory authorities; financial community • conomi c • trategic • Reputatio nal • Operatio nal • Quality of service • conomi c • trengthening of Company initiatives regarding specific issues (e g quality) • mprovement of products and services • Development of customer assistance model • Complaints management • mplementation of the Quality Management ystem Cyber ecurity, ecurity and rivacy ncrease in malfunctions relating to technology infrastructure oste taliane people; Media; Customers • conomi c • trategic • Operatio nal • Reputatio nal • Quality of service • conomi c • Risk and control management model in the scope of privacy, cyber security and business continuity • nvestments in infrastructure modernisation nnovation and digitisation of products, services and processes nsufficient innovation capacity in multi-channel, customer experience and digital areas Financial community; Customers; Community and territory • trategic • Quality of service • conomi c • pecific organisational responsibility for digital development • Launch of digital initiatives (products, services and business models) • artnerships and collaborations with first mover realities in the digital and technological sector ntegration of G factors into investment policies Lack of perception of the overall risk of operations and loss of business opportunities Financial community; customers • Financial and insuranc e • G • conomi c • Human rights • Management of risks and opportunities relating to environmental, social and governance ( G) factors within traditional investment processes ntegration of G factors into insurance policies Lack of perception of the overall risk of operations and loss of business opportunities Financial community; customers • Financial and insuranc e • G • conomi c • Human rights • Management of risks and opportunities relating to environmental, social and governance ( G) factors within traditional

insurance

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 LLAR MA R A L O C R K V STAKEHOLD ERS O AL M AC O O AL A O AL M AC O AK HO LD R MA MA AG M M HOD O AL M AC O CA AL processes

Poste Italiane Group Report on Operations at 31 December 2023

6.3 POSTE ITALIANE'S COMMITMENT TO MANAGING HUMAN RIGHTS RISKS

With the aim of monitoring and managing risks and opportunities associated with human rights in all their manifestations, the "Group policy for the protection of Human Rights" is an essential tool for outlining a clear approach in managing activities of oste taliane and those delegated to third parties or conducted with partners, demonstrating the Group's commitment to carrying out socially responsible investment and management activities

n order to encourage a corporate culture based on respect and valorisation of diversity, in line with what has already been stated in the Code of thics and in the Company olicy on the safeguarding and protection of Human Rights, oste taliane has adopted a specific "Diversity & nclusion olicy" his policy also aims to define the methods of creating value within working environments, promoting diversity in all its facets and evaluating the risks associated with the occurrence of discrimination within the Company hrough the application of risk assessment procedures, the Group's risk management model also provides for the periodic identification of business activities and organisational areas that could entail a risk of human rights violations his process is carried out at least annually, as well as on the basis of specific requirements (e g prior authorisation of any corporate transaction) and is structured as follows:

• dentification of human rights risk drivers (e g freedom of association, dignity and respect for human rights, discrimination, equal pay, forced labour, human trafficking, child labour, etc );
• dentification and analysis of the most relevant drivers with respect to oste taliane's business;
• Carrying out an assessment to:
  • dentify the areas most at risk of human rights violations;
  • dentify measures to mitigate this risk (e g certification, guidelines, policies, contractual agreements, due diligence, training, audits, etc );
  • Define potential action plans in case such measures are absent or inadequate;
  • Monitor the implementation of action plans

he outcome of this activity is reported within the following risk heatmap in order to prioritise possible courses of action according to the risk level of each area analysed

n particular, these activities are identified both according to their direct impacts, i e generated directly by the Company, and according to their indirect impacts, i e generated by third parties that collaborate with the Company he analyses focus on one hand on oste taliane's own operations, with reference to the protection of the human rights of its employees and other stakeholders, and on the other hand, on the activities carried out by third parties connected to the Company, such as suppliers, sub-contractors, customers, local communities, and the financial community Analyses are also carried out upon approval of new business relationships and corporate transactions, such as mergers, acquisitions, joint ventures and partnerships

Listed below are the various drivers that have been identified as particularly significant with respect to oste taliane's business hese factors were considered in order to identify and analyse human rights risks, both direct and indirect, in relation to different material topics and financial and non-financial capital, as well as for the identification of specific mitigation actions

RISK DRIVERS	MAIN RISK MANAGEMENT ACTIONS AND TOOLS	PILLAR	MATERIAL TOPICS	CAPITALS IMPACTED
1 Dignity and respect	 Group Code of thics  231 Model  Whistleblowing guidelines  Whistleblowing portal  Achievement of O 37002 "Whistleblowing"		rotection of human rights at the Company
2 Freedom of association and protection of the right to organise 3 Freedom of association and collective bargaining	 Constant preventive dialogue with social partners  Dissemination of national agreements at local level  tudy and monitoring of regulatory and doctrinal developments in the field of labour law  Whistleblowing guidelines  Whistleblowing portal  Achievement of O 37002 "Whistleblowing"		Relations with social partners
4 Discrimination	 Group Code of thics  Diversity and nclusion olicy  qual opportunities initiatives (e g percentage of women in positions of responsibility, enhancement of disabled personnel, supporting vulnerability)  nitiatives to protect workers (e g violence against women)  Achievement of O 30415 "Human resource management - Diversity and nclusion" certification  Whistleblowing guidelines  Whistleblowing portal  Achievement of O 37002 "Whistleblowing"  Certification for Gender quality according to U / dR 125:2022		rotection of human rights at the Company qual career development opportunities
5 alary conditions and working hours	 Group Code of thics  igning of new employment contract which provides for remuneration negotiated with the labour unions and uniform conditions for all workers  upplementary pension schemes  Welfare platform  ncentive and reward schemes		rotection of human rights at the Company qual career development opportunities

Poste Italiane Group Report on Operations at 31 December 2023

RISK DRIVERS	MAIN RISK MANAGEMENT ACTIONS AND TOOLS	PILLAR	MATERIAL TOPICS	CAPITALS IMPACTED
	 Counterparty due diligence (suppliers, partners, companies involved in mergers/acquisitions, etc )  ocial policies  n addition to the ethical and social principles set out in the Code of thics, formal acceptance of anti corruption and human rights principles by the Group's suppliers, sub-contractors and partners  Whistleblowing guidelines  Whistleblowing portal  Achievement of O 37002 "Whistleblowing"		Legality and incorporation of G in the procurement process
6 raining	 raining initiatives and individual training plans for oste taliane employees, regarding both processes and products  raining and skills development courses, processes and services  Gathering feedback from training sessions to optimise the offering  romotion of communication, training and information initiatives to increase engagement		ersonnel training and development
7 Occupational health and safety	 upervision with responsibility regarding occupational health and safety and the environment (H )  Communication plan and actions  Dissemination and updating of knowledge/techniques and regulations as well as behavioural standards  Monitoring of accidents and analysis of their causes		Occupational health and safety
	 pecific audits at suppliers' premises to verify the conditions declared in the contract  Development of occupational health and safety supervision (achievement of U O 45001 certification, implementation of the " ntegrated Management ystem", etc )  Health and afety portal for the management of occupational health and safety issues, as well as references to the main new legislation and case law		Legality and incorporation of G in the procurement process

RISK DRIVERS	MAIN RISK MANAGEMENT ACTIONS AND TOOLS	PILLAR	MATERIAL TOPICS	CAPITALS IMPACTED
8 rivacy	 Consent management  Compliance relating to application of the General Data rotection Regulation (GD R) and personal data protection legislation  Actions in the area of personal data protection (e g personal data protection assessment, adaptation plan for uropean rivacy eal certification, etc )  Communication with the talian Data rotection Authority in order to provide information and clarifications  Definition and standardisation of contractual requirements for compliance with laws		Cyber ecurity, ecurity and rivacy
9 Counterparties working conditions	 enders conducted on the basis of social criteria

upplier and partner due diligence

sustainability audits

• Counterparty due diligence in the case of new corporate transactions (e g mergers, acquisitions, etc ) Check that specific requirements are in place based on supplier
• Legality and incorporation of G in the procurement process

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6.4 MANAGING CLIMATE CHANGE RELATED RISKS AND OPPORTUNITIES

Poste Italiane Group Report on Operations at 31 December 2023

oste taliane recognises the importance that it itself assumes in terms of capillarity within the territory in which it operates As a result, the Group is committed to reducing its environmental impact, steering the country's economy towards a lowcarbon transition

Given the potential economic implications arising from risks related to climate change, the Group adopts a responsible approach in carrying out its activities his commitment is in line with the new edition of the "Global Risks Report" published by the World conomic Forum in January 2024 he paper tracks perceptions of global risks among industry experts and world leaders at various levels, examining them in five categories: economic, environmental, geopolitical, social and technological he report illustrates that the top four global risks to be addressed over the next decade are all environmental o the side is the ranking of the "5 op Global Risks" identified in the report

n compliance with the main regulatory developments and in response to the growing requests of the financial community and main stakeholders, oste taliane provides information regarding climate change following the sectors defined by the ask Force on Climate-related Financial Disclosures ( CFD): Governance, trategy, Risk Management, Metrics and Objectives he CFD, established in 2015 by the Financial tability Board (F B), published a set of recommendations to assist companies in reporting on the risks and opportunities that climate change may pose to corporate performance, in a transparent and comprehensive manner

his section complements and supplements the information on the commitment, approach and initiatives to reduce environmental impact in the illar "Green transition"

Governance

he organisational and governance structure reflects the Group's commitment to the adequate management of environmental issues, and provides for specific roles and responsibilities

⦁ he oste taliane pA's Board of Directors approves the ustainability guidelines and strategies on the basis of assessments that consider, among other things, the risks and opportunities related to climate change that may be relevant in terms of reputation for the Group

⦁ he ustainability Committee (C ost) collaborates with the Board of Directors, performing investigative, propositional and advisory functions to promote sustainable success his includes support in assessments and decisions related to environmental, social and governance factors, with a focus on climate change

pecifically, the C ost carries out an activity specifically dedicated to climate change as part of its functions n fact, the Committee examines, evaluates and makes proposals on the Group's environmental, social and governance (the latter with reference to ustainability) strategy, including climate change

strategies, annual targets and deliverables, considering potential projects related to these topics and monitoring their implementation over time he C ost also monitors climate-related risks and opportunities and all initiatives taken by the Company to address these issues, coordinating with the Control and Risk Committee and reporting to the Board of Directors At management level, the Chief xecutive Officer and the Group ustainable Development, Risk and Compliance function manage the main functions related to environmental issues n fact, the C O of oste taliane pA has the task of establishing, maintaining and ensuring the effectiveness of the nternal Control and Risk Management ystem ( C GR), as well as formulating the ustainability strategies connected to environmental issues and overseeing their implementation, continuously monitoring their adequacy and effectiveness, always considering the assessment of related risks and opportunities

he Group ustainable Development, Risk and Compliance function of oste taliane pA:

• defines, in collaboration with the departments involved, the guidelines and objectives of ustainability and corporate social responsibility for the Company, using a set of indicators for monitoring ustainability performance, and specific metrics to monitor climate-related risks and opportunities, in line with best practices and related international guidelines;
• is the single point of reference for the governance and management of all risks, involving the specialist units directly reporting to the Group ("direct controls"), as well as other risk controls ("indirect controls") present in oste taliane and in Group Companies

Finally, to correctly identify and manage climate-related risks and opportunities also for investment and insurance processes, additional controls were put in place n particular, Banco osta Fondi GR and oste Vita have set up committees responsible for periodically analysing and assessing the G risk (including, therefore, also the environmental risk) of the portfolios and the evaluation criteria of the issuers' G profiles As far as insurance processes are concerned, oste Vita's Risk Office function is responsible for identifying, analysing and assessing the signs of change deriving from the various dimensions of the external environment, with particular attention to factors linked to climate change he identification of these signals takes place jointly with the " roducts Committee - G Assessments", which periodically examines and evaluates the criteria for defining the G profiles and the Group's product catalogue

oste taliane assesses several risk drivers, attributable to the two macro-areas transition risks and physical risks, in relation to climate change After associating the risks to each driver, the Company connects the material issues and the capitals involved, defines opportunities and potential related negative impacts and identifies specific mitigation actions n the risk assessment process, oste taliane considers direct activities, upstream and downstream operations, also including customers as the main beneficiaries of the Company's products he Group has developed activities and actions for the business with respect to short (0-3 years), medium (3-5 years) and long term (5-10 years) perspectives, considering the time frame 2019-2030

oste taliane contributes to the transition towards a low-carbon economy by reducing emissions in commercial operations envisaged by the Business lan, with the aim of achieving Carbon eutrality by 2030, supporting the aris Agreement to limit global warming to 1 5°C

As far as transition risks are concerned, the Group updated its analysis by conducting a review of various scenarios considered by the nternational nergy Agency ( A) in order to obtain a complete picture of potential future developments n particular, after an evaluation of the possible alternatives, oste taliane used two scenarios, Z and A B2D , considered the most relevant for assessing transition risks and opportunities and in line with the Group's objectives of maintaining the global temperature at 1 5°C

he Z ( et Zero missions by 2050) scenario is a regulatory scenario that, through appropriate global climate policies within the energy sector and the deployment of a broad portfolio of clean technologies, enables the achievement of zero CO² emissions by 2050, while also contributing to the achievement of the following ustainable Development Goals of the 2030 Agenda: ensure health and well-being for all and all ages ( DG 3), ensure universal access to affordable, reliable, sustainable and modern energy systems ( DG 7) and take urgent action to combat climate change and its consequences ( DG 13) he scenario is supported by a detailed analysis of the timeframe of clean energy technology projects and considers global cooperation to be crucial in facilitating the development and adoption of ambitious policies, lowering the costs of technologies and financially supporting emerging and developing economies on this path With this in mind, the oste taliane Group has set itself the goal of achieving Carbon eutrality by 2030, implementing specific initiatives aimed at increasing energy efficiency, such as using 99% of its electricity from renewable sources certified as Guarantee of Origin, expanding the photovoltaic project, continuing the mart Building project, installing around 85,000 L D lighting fixtures, the replacement of gas boilers with heat pumps, and the implementation of a Fleet Renewal lan for the complete replacement of the entire vehicle fleet with low-emission models Furthermore, as regards the sale of energy and offsetting emissions related to the consumption of natural gas sold by oste taliane, the electricity sold by the Group in 2023 was derived 100% from renewable sources produced in taly and carbon dioxide emissions were offset through the purchase and cancellation of an equivalent volume of Voluntary Carbon Credits n terms of the oste taliane Group's business strategy, this scenario analysis has led to the definition of objectives aimed at mitigating this specific risk in the short to medium term, such as: reducing absolute CO² emissions by 30% by 2025; reducing the Group's cope 1 and 2 emissions by 42% by 2030, in line with the science-based methodology; achieving Group Carbon eutrality by 2030; and replacing the entire corporate fleet with vehicles with a reduced environmental impact by 2024

he A B2D scenario, on the other hand, focuses on the hypothesis of the development of climate and technology policies aimed at reducing GHG emissions and was taken into consideration by the oste taliane Group in order to establish GHG emissions reduction targets he relevance of this scenario is also underlined by the B i ( cience Based arget nitiative) and, in this perspective, oste taliane has officially committed to setting science-based targets for its greenhouse gas emissions

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

he scenario analysis conducted by the Company, in addition to considering the basic assumptions of the models, took into consideration the trends in the transport sector and the estimate of forecasts and development in the coming years he Group then made projections of its business in order to identify related risks and opportunities he scope of the analysis involved the logistics sector, thus including transport, buildings and facilities, key assets for the Company's business and for the Carbon eutrality objective

Following the various analysis activities, the transition risks identified by oste taliane are as follows:

1. REGULATORY DEVELOPMENTS

RISK	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT ACTIONS AND TOOLS
ncreased severity in legislation in consideration of climate change related targets Time frame: Medium-term Pillars impacted ntegrity and transparency Working with integrity and transparency	Negative impacts: • Failure to respond in a timely manner to regulatory environmental requests, in view of the complexity and operational heterogeneity of the oste taliane Group • otential penalties for non-compliance with applicable regulations • Growing impact of non-compliance with regulations on reputational risk, also in view of oste taliane's economic and social role in the local area	As part of the ntegrated Compliance process, oste taliane continuously monitors the external regulations relevant to the Group and translates the set of regulatory principles into the body of rules required to ensure their application he inventory of all regulations relevant to the Group is managed in an integrated manner on the dedicated GRC platform oste taliane also takes part in technical and working groups on regulatory developments, in order to ensure analysis of changes in the regulatory framework, guaranteeing its correct implementation, and represent the Company's position on these issues to national and international bodies, in order to support the Group's business
	Opportunities:
Capitals impacted:	• otential regulatory amendments to benefit the business
Human	• More timely than competitors in complying with complex regulations
ntellectual
Financial

2. MARKET DEVELOPMENT

R K	O AL G F CA M AC FOR O AL A	MA R K MA AG M AC O A D OOL
volving market demand, focusing increasingly on environmental issues, which require substantial adjustments to the services and products offered by the Group	Negative impacts: • nadequacy of the products and services offered with respect to the demands of customers, investors and other stakeholders, increasingly driven by ustainability issues	oste taliane is actively engaged in developing existing products/services with alternatives that take G criteria into account (e g investments, insurance) in order to ensure an increasingly wide range of products and services that integrate high ethical standards and environmental criteria
ime frame: Long-term	Opportunities: • ncreased business opportunities due to changes in consumer needs (e g development of low-emission services; development of investment and insurance	he portfolios of Banco osta Fondi GR and oste Vita are periodically subjected to G analysis to assess their degree of social responsibility, and carbon footprint, with the aim of mitigating any risks An example can be seen in the development of insurance solutions that, on
illars impacted Sustainable Finance ntegration of G factors into investment policies ntegration of G factors into	products for climate adaptation) • Launch of products that encourage prevention and responsible behaviour (e g ethical investment solutions)	the one hand, encourage the adoption of sustainable and responsible behaviour by its policyholders and, on the other, contribute to mitigating G risks he results obtained both for Banco osta Fondi GR and oste Vita, are higher than the G performance of reference benchmarks
insurance policies	• Redirection/creation of new business areas • ossible access to new markets and new customer segments requiring insurance coverage	n addition, as of 2022, the Group entered the energy market with a 100% green offer for electricity and 100% CO2-compensated offer for gas As part of the oste taliane Group's strategy for pursuing its ustainability objectives, the integration of G principles into its
Capitals impacted: Human	• nvestments in sectors that contribute to the ustainable Development Goals (" DGs") promoted internationally by the United ations	investment processes is also of particular importance, with investments in sectors that contribute to the ustainable Development Goals (" DGs") (e g investments in bonds in the "Green", " ocial" and
ntellectual		" ustainable" categories in line with the standards and principles defined by the nternational Capital Market Association)
Financial
ocio-relational
atural

3. TECHNOLOGICAL DEVELOPMENT AND INNOVATION

R K	O AL G F CA M AC FOR O AL A	MA R K MA AG M AC O A D OOL
Failure to adjust its business model in line with the technological developments needed to contain climate change-related phenomena ime frame: Long-term	Negative impacts: • Limited availability of "green" vehicles suitable for carrying out oste taliane's logistics and delivery activities • Use of polluting vehicles that may have a negative impact on the environment and on oste taliane's reputation • nvestments in innovative solutions that, nonetheless could have negative impacts on the environment, in terms of polluting emissions and energy consumption	oste taliane's support in the transition to a low-carbon economy is driven by its commitment to set targets to reduce emissions and the environmental impact generated by its activities, achieving Carbon eutrality targets by 2030 With this in mind, starting in 2019, the Group has implemented a Fleet Renewal lan that envisages replacing the entire fleet of vehicles used for the delivery of postal products with green vehicles he results of this policy are evident, as the Company has gone from 11% green vehicles in 2016 to 44 4% in 2023, with the aim of replacing the entire company fleet with
illars impacted	Opportunities:	low-emission vehicles by 2024
Green transition nvironmental impacts of logistics Creating value for the country upport for the socio-economic development of local communities	• Leaner and more efficient management of operations • Reduce the Group's total energy consumption from non-renewable sources (e g fossil fuels) • Reduction of emissions related to the use of the vehicles that make up the company fleet	oste taliane has also expanded its range of services by entering the energy sector, with a 100% green product, produced exclusively in taly from renewable sources and certified through guarantees of origin his project allows the Group to correlate green transition issues with those of innovation and digitalisation, while representing a major opportunity for sustainable development at national level
	• Cost reduction	Finally, the new olis roject envisages the implementation at ost Offices of interventions aimed at environmental sustainability and social growth of

Annual Report 2023

Innovation nnovation and digitalisation of products, services and processes Customer experience Quality and customer experience Cyber ecurity, ecurity and rivacy Capitals impacted: ntellectual Financial hysical-structural ocio-relational atural communities n particular, it is planned to install 5,000 thousand charging stations for electric vehicles and 1,000 photovoltaic systems that will contribute to the reduction of CO² emissions, 1,000 outdoor spaces equipped to host cultural, health and wellness initiatives, and 4,800 smart building systems and environmental monitoring sensors n addition, by providing the possibility to access public administration services from a One- top hop and through the creation of co-working spaces, the movement of citizens and the consequent congestion of roads and public offices will be reduced, allowing the reduction of CO² emissions As of 29 February 2024, there were 1,190 ost Offices in municipalities with less than 15,000 inhabitants and 31 co-working spaces established

R K		O AL G F CA O	M AC FOR AL A	MA R K MA AG M AC O A D OOL
Activities carried out by the Company or counterparties that could impact negatively on climate, with consequent damage to its reputation ime frame: Long-term		Negative impacts: • nvestments that may have negative impacts on the environment • Using suppliers that provide goods/services with negative impacts on the environment • Focusing attention on the macro-economic and geo-political context, with reputational impacts due to reduced commitment to environmental issues Opportunities:		As part of the risk management model, the Group considers both the possible impacts that climate change related phenomena may have on the business of oste taliane (indirect impact) and those that the Company's activities may have on the climate (direct impact) he process of identifying and assessing risks and environmental management methods also extends to counterparties (suppliers, business partners, other companies), impacting the procurement processes and any extraordinary finance transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental
	Integrity and transparency	at climate change-related issues • Greater responsiveness compared to competitors in maintaining a high level of attention to environmental issues despite the context of uncertainty	takes into account parameters such as: possession of environmental, quality and energy performance certifications and adoption of environmental management systems, ethical standards of conduct and Minimum nvironmental Criteria (M C)
	Working with integrity and transparency
	Legality and			he correct identification and assessment of climate
	incorporation of G criteria		related risks and opportunities is also ensured by listening to stakeholders, who are periodically involved in
	in the			the Multistakeholder Forums organised by oste taliane hey are also provided with a reporting system
	procurement process			that allows them to bring any perceived risks to the
	Creating value for the country			attention of the Company
	upport for the socio-economic development of local communities		oste taliane, in line with the decarbonisation strategy and in implementation of the guidelines for the exercise of the right to vote and engagement activities and for investment in sensitive sectors, has confirmed the collaborations through its subsidiaries oste Vita and Banco osta Fondi GR with the climate change networks Land Use & Climate, of the international Ceres
	Dialogue and transparency in relations with the authorities
	Green transition
	nvironmental impacts of real estate facilities		network, and Climate Action 100+, an international collaborative engagement initiative to raise awareness of the largest emitters of greenhouse gases worldwide on climate change issues n addition, the aforementioned

Capitals impacted:

Poste Italiane Group Report on Operations at 31 December 2023

companies consider the rincipal Adverse mpacts ( A s) on sustainability factors brought about by investment decisions, and during 2023, developed an initial approach for monitoring and managing A s, both at the entity and individual investment product level, in

uropean Union

achievement of international carbon neutrality objectives by 2030, well ahead of the timeframe defined by the

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023 Human ntellectual Financial hysical-structural ocio-relational atural compliance with regulatory requirements and existing internal regulations, aimed at identifying possible negative impact mitigation actions to be implemented oste taliane is focused on pursuing sustainable development by continuing to invest in projects aimed at strengthening G initiatives n order to reduce the direct impact that oste taliane's activities may have on the climate, the Company is making constant progress in using energy sources that do not use fossil fuels (e g solar energy from photovoltaic panels on buildings) and in reducing energy consumption (e g replacing neon lights and using L Ds), partly in order to deal with potential sudden changes in energy prices Among other things, oste taliane, in line with its adhesion to the aris Agreement and the ew Green Deal, has set itself the ambitious goal of making its contribution to the

With regard to the assessment of physical risks, oste taliane's Governance dedicated to risk and sustainability, in line with what the CC has developed worldwide on climate projections, has updated its climate and water risk assessment methodology to have a clear picture of the risk and assessment of potential physical risks and opportunities n this sense, the Company has conducted a precise assessment, including in the analysis all the Group's production and sorting sites located in different areas of taly

pecifically, oste taliane, following an extensive analysis process that included the evaluation of the main Representative Concentration athways (RC ) of greenhouse gases, and the consistency of these pathways with the duration of assets and activities, identified and selected two scenarios: RC 2 6 and RC 8 5 he Group selects RC 2 6 as the reference scenario, in line with the ambitious nature of the risk mitigation activities envisaged in the Business lan in relation to the landscape identified by the CC RC 2 6 scenario envisages a peak in emissions at an early stage, followed by a subsequent decrease caused by the active removal of carbon dioxide within the atmosphere RC 2 6 is also known as RC 3 D, in relation to the mid-century peak of ~3W/m², which will be followed by a significant decline With the goal of zero greenhouse gas emissions by 2100, this scenario uses massive regulatory and policy intervention, leading to an almost immediate reduction in greenhouse gas emissions (GHG) he Company also considers the CC's RC 8 5 scenario, as it provides an example of the worst-case scenario, i e the condition of a continuous increase in emissions during the course of the 21st century RC 8 5 pathway results from insufficient emission reduction efforts and represents a failure to stem warming by 2100 Regarding the climate projections for the two scenarios, in fact, for RC 8 5, areas of the Mediterranean will experience an increase in temperature and a decrease in rainfalls, which will intensify in the second half of the century with an increasing trend until 2100 According to the RC 2 6 scenario, on the other hand, there will be similar but smaller effects in the first half of the century, with a decreasing trend in the second half his leads to a clear difference between the two scenarios in 2100

More ambitious scenario aims to limit the average global temperature to 1.5°C compared to pre-industrial levels

Business-as-usual scenario with no mitigation action leading to atmospheric CO² tripled or quadrupled by 2100 compared to pre-industrial levels

Annual Report 2023

oste taliane carried out a risk assessment with the aim of assessing the potential impacts of physical events related to climate change on the business he risk assessment considered the extent of the risk already existing at the sites and the future risk up to the year 2024 (medium-term scenario), under RC 2 6 and RC 8 5 n addition to the basic assumptions of the chosen models, the company also conducted a further study on the data from the rainfalls and main temperature parameters of the different scenarios, then comparing them with current data with the aim of determining the significance of the variation with respect to the existing risk at the sites examined, in line with the RC 2 6 scenario and taking into account the possible implications of the RC 8 5 worst case scenario Future projections of changes in physical risk levels related to natural disasters are relevant in strategic terms, although in most cases there is still no certainty On the other hand, excessive reliance on what is already known from climate science must be avoided herefore, oste taliane's risk assessment is appropriate to the increasing level of risk in its business and operations

he assessment of physical risks covers the entire revenue generated by the Group, amounting to €12 billion of existing operations in 2023, mainly from ost Offices and hubs, which are potentially most impacted by extreme weather conditions Furthermore, with a view to a long-term time horizon, in line with the Business lan and the 2030 Carbon eutrality target, all new operations are subject to risk assessments that also take into account physical climate risks

he product result of the risk assessment is then converted into potential days of business interruption and then multiplied by the value in terms of lost revenue (€) of one day of business interruption he main risks that emerged from the scenario analysis are those related to extreme weather events and changes in rainfall patterns he greater severity of extreme weather events such as rain, storms, snowfalls and possible floods or frosts, with consequent landslides and floods, could cause interruptions in production, sorting and therefore logistics activities, as well as damage to sites and higher logistics costs he negative impact of acute physical damage and interruptions in energy distribution is reflected on the financial performance of the group, influencing results and cash flows and leading to a deterioration of reputation [with consequent worsening of reputation] and loss of customer trust One example of this was the severe flooding that occurred during the year in the regions of milia-Romagna and uscany, following which the Group cooperated with national and local institutions hese events caused damage to oste taliane's ost Offices, leading to the suspension of services recisely in consideration of a possible interruption of the activity, oste taliane carried out an analysis based on its production and sorting plants located in different areas of taly n this way, the Group was able to assess the potential financial impacts associated with climate events, compared to 2024 he sites with the highest potential financial impact due to flooding in 2024 are located in the regions of orthern taly n particular, the new hubs of Bologna and Landriano have been identified among the sites at greatest risk and which would lead to substantial loss of revenue in the event of business interruption, due to their operational importance With reference to physical risks, the Group envisages specific mitigation measures in response to extreme weather conditions (e g landslides, avalanches, floods, etc ), which are detailed below

5. EXTREME WEATHER CONDITIONS

RISK	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT ACTIONS AND TOOLS
Limited production, sorting and logistics, damage to sites and higher logistic costs due to extreme weather events such as rain, storms, snowfalls and possible floods or frost, with consequent mudslides and flooding ime frame: Medium-term Pillars impacted Integrity and transparency Working with integrity and transparency Creating value for the country Dialogue and transparency in relations with the authorities People development Occupational health and safety Capitals impacted: Human ntellectual Financial ocio-relational	Negative impacts: • Limitations company operations due to extreme weather events, with consequent losses in revenue Opportunities: • Advantages deriving from the greater reliability of the supply chain and oste taliane's improved ability to operate in various conditions compared to its competitors	As part of its risk management model, the Group considers both the possible impacts that climate change phenomena may have on the business of oste taliane, identifying the main ways of managing them n order to guarantee business operations even in the event of extreme weather conditions, oste taliane has adopted business continuity and disaster recovery plans in addition to actions aimed at preventing physical damage to structures U O 14001 certification was maintained, providing for the systematic management of environmental aspects inherent to processes, from the perspective of improving environmental performance and making it more efficient, thus gaining significant benefits, also in terms of sustainability Furthermore, to prevent additional possible damage caused by extreme weather conditions, the Group has identified the regulatory perimeter for activating an environmental monitoring system, to determine the average annual concentration of radon gas in the air, based on assessing the risk of exposure to ionising radiation Finally, for the coordination of emergency and recovery activities, oste taliane maintains dialogue with institutions (e g Civil rotection, Civil Defence) as well as interfacing with relevant bodies and international protection and defence organisations (e g participation in drills or other initiatives, etc )

With a view to continually improving the management of climate and environmental factors and their impact on the various prudential risks, in early 2023, Banco osta Fondi, oste ay and L ay, as non-banking financial intermediaries, aligned themselves with the Bank of taly's recommendations regarding " upervisory xpectations on Climate and nvironmental Risks" he three institutions therefore started working on an action plan to integrate climate and environmental risks (physical and transitional) into their governance and control systems, business model and strategy, organisational system and operational processes, risk management system and market reporting

Poste Italiane Group Report on Operations at 31 December 2023

6.5 MANAGING EMERGING RISKS AND THE RELATED OPPORTUNITIES

oste taliane deemed it necessary to include and manage emerging risks within its risk management processes, given their significance merging risks considered are exogenous, disruptive events that can threaten the business model over a long-term horizon (up to 20 years) and are potential game changers for the industry and the context in which organisations operate hey are usually characterised by elements, such as:

• uncertainty and visibility: lack of data useful to analyse the phenomenon and difficulty in finding skills, knowledge and awareness of the potential effects that they have on the business model;
• timing of the changes: the changes derive from radical changes in the external reference context (socialenvironmental, legislative, technological, habits, etc ), which alter the processes from various points of view, in a destructive and unpredictable way over time;
• management complexity: increasing complexity of management methods, linked to the absence of immediate response actions to events resulting from highly interconnected exogenous factors with strong systemic dependencies and time accelerations

Failure to adapt to these trends will result in missed business opportunities, reduced revenue, qualitative-quantitative repercussions in terms of the mix of its employees, and sanctions by regulatory and supervisory authorities he tables below summarise the trends for each emerging risk arising from exogenous factors, the potential significant impact on the Company (based on BUs information, risk categories, sustainability pillars and financial and non-financial capital potentially impacted, and on the basis of breaking down the main negative impacts and opportunities) and the main ways of managing them

DEMOGRAPHIC AND SOCIAL CHANGES:

Changes in size, growth and demographic and social composition (e g increased longevity combined with low birth rate) resulting in unfavourable changes in the generational distribution and needs of oste taliane's customers

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
Changes in population size, growth and composition can generate impacts on socio-economic structures related to factors such as population ageing, birth rate, fertility, generational changes and centralised urbanisation he process of ageing population is a phenomenon that is already clearly visible in the economies of the urozone and is destined to become more accentuated in the coming decades, with a reduction in the working-age population compared	Negative impacts: • nadequacy of product offers and postal services (e g , excessive digitisation of services) for changing consumer needs • ncrease in insurance costs borne by the Group relating to care, assistance and welfare expenses for the elderly • Difficulty in developing reliable forecasting models that allow the Group to predict market developments	Longevity and maturity: Aware of the opportunities linked to the ageing of the population and considering the strong impact of demographic trends on its services, the Group has developed specific products for segments of the population with evolving needs such as, for example, the insurance product " ostaprotezione nfortuni enior iù" specifically dedicated to people aged between 59 and 79 ach product offered by the Company is accompanied by clear and usable information to all types of customers in order to allow them to always make informed choices
with the older population, which will instead tend to increase n taly, in particular, there is a higher longevity in good health and a lower birth rate, together with a reduction in the number of women of childbearing age he expansion of said phenomena may lead to economic challenges, including an increased financial burden on social security and health	• Difficulties in offering financial and insurance products that are attractive to both older and younger generations • Difficulties in offering different products and/or services according to urban areas and their characteristics • Decline in demand for traditional services, such as paper mail, in favour of digital alternatives	oste taliane is constantly seeking innovative solutions aimed at reducing the digital divide and increasing financial inclusion, with a particular focus on the most fragile and at-risk groups, supporting and sustaining the different population groups within the communities in which it operates n this context, oste taliane promotes digital education initiatives, also aimed at seniors, to enable full and conscious use of the tools made available to them

Annual Report 2023

care systems, increased demand for health and welfare services, and a reduction in the available workforce with implications for economic growth and the sustainability of pension systems

From a social point of view, the economic and employment insecurity of younger people, aggravated by geopolitical instability, calls for more and more support and assistance policies that could generate increased demand for mortgages and investment loans

Moreover, in recent years, there has been an increase in the rate of depopulation of the peninsula's more inland areas, in favour of more urbanised and developed cities he increase in urban population may overload existing infrastructure, lead to environmental problems and cause socio-economic disparities between urban and rural areas

However, the rise in life expectancy and the increase in average age could support the emergence of new markets and new businesses

Trend: ncreasing

Risks impacted:

• Operational
• Financial and nsurance

SBUs impacted:

• nsurance ervices
• Mail, arcels and Distribution
• ayments and Mobile
• Financial ervices

Pillars and material topics impacted

Diversity and inclusion rotection of human rights

upport for the socio-economic development of local communities

Customer experience

Quality and customer experience

People development

ersonnel training and development

Opportunities:

• ncreased business opportunities due to changes in consumer needs, based on meeting the needs of the more mature population
• ncreased demand for life and &C insurance products
• ossibility of implementing staff welfare and wellbeing plans (e g promoting active parenthood) in order to increase labour market attractiveness
• ossibility of accessing funds and contributions for the realisation of initiatives benefiting peripheral urban areas, also taking advantage of the widespread presence in taly that allows for visibility of the products and services offered throughout the country

n particular, the programme " ilver conomy echnology and Ageing" dedicated to seniors, aims to represent the main trends in ageing and to explore some specific topics, with a special focus on new technologies he purpose of this programme is to propose a package of financial and savings, insurance, telephony, shipping and delivery services, ideal solutions tailored to specific customers, positioning oste taliane as a single interlocutor capable of satisfying different needs and, at the same time, helping to improve knowledge of financial and digital tools, through a training course conducted by oste taliane's financial and digital experts

Generational changes:

oste taliane promotes integrated strategies in favour of intergenerational dialogue and an exchange between generations within the Company, also on the basis of demographic forecasts and the relative impact on turnover o this end, the Group promotes the crossfertilisation of different social, cultural and work experiences, as well as the different skills, knowledge and competences typical of each generation, encouraging discussion in a logic of complementarity and openness necessary to foster the exchange of experiences in support of inclusion and employment possibilities

n particular, as part of its actions in support of intergenerational exchange within the Organisation, it promotes the "Generazioni connesse" (Connected Generations) survey, an initiative in continuity with the "FishBowl generation" project, which aims to focus on the languages, working styles and needs of the main generations present in the Company in order to identify and enhance shared actions capable of stimulating generational alliance

n addition, the " ext Generation" roject has made it possible to bring the new generations closer together, to develop their potential and aspirations, creating a bridge between young people and the world of work

Natality:

upport for active parenthood through the promotion of various projects and initiatives aimed at supporting parents employed by oste taliane, such as, for example, the Lifeed project aimed at making the parenting experience a "master" in transversal skills, which are also essential for professional growth

olicy dedicated to supporting mothers and fathers employed by oste taliane (Active arenting upport olicy) and alternative maternity and paternity leave

Support and development of peripheral urban areas:

oste taliane participates in the RR Complementary lan with the olis roject - Digital Citizenship ervices Houses, promoted by the Government he aim of the olis roject is to promote the economic, social and territorial cohesion of the country and to overcome the digital divide in small towns and inland areas n particular, the olis roject includes initiatives aimed at simplifying the lives of citizens in smaller and less accessible centres and ensuring equal opportunities between the inhabitants of large and small centres

Annual Report 2023

REGULATORY AMENDMENTS:

ncreased severity in the reference legislation applicable to the business with particular reference to environmental variables

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
he increase in the level of detail and complexity of the regulatory obligations required by the competent authorities in relation to the regulations issued requires a growing cultural change within companies, which are called upon to review their operational activities in order to adapt to the increasingly frequent and pervasive amendments in the applicable national and international regulations	Negative impacts: • Failure to respond in a timely manner to regulatory requests (for example, regarding governance structures, responsible finance, etc ), partly in view of the complexity and operational heterogeneity of the oste taliane Group • otential penalties for non-compliance with applicable regulations	n view of the complexity of oste taliane and the numerous business sectors in which the Group operates, as well as the legal and reputational impacts, the Company has defined an integrated compliance process at Group level, with the specific aim of monitoring - in a structured way for each level of the company and in a manner appropriate to each business sector - the risks of non-compliance to which the Group is exposed, fully implementing the principles of integrity, transparency and legality
Regulatory developments are particularly influenced by the implications of the geopolitical context, technological innovations, sustainability and climate change issues, which are increasingly being addressed by national and	• Growing impact of non-compliance with regulations on reputational risk, also in view of oste taliane's economic and social role in the local area • Limitation of trade relations with subjects/countries affected by international	As part of the ntegrated Compliance process, oste taliane continuously monitors the external regulations relevant to the Group and translates the set of regulatory principles into the body of rules required to ensure their application he inventory of all regulations relevant to the Group is managed in an integrated manner on the dedicated GRC platform
international legislators Frequent changes in regulations can make it complex for companies to adapt and plan long-term strategies, leading to increased uncertainty and volatility, as well as instability in the	sanctions Opportunities: • Launch of products that encourage prevention and responsible behaviour (e g ethical investment solutions) • otential regulatory amendments to benefit the	oste taliane also takes part in technical and working groups on regulatory developments, in order to ensure analysis of changes in the regulatory framework, guaranteeing its correct implementation, and represent the Company's position on these issues to national and international bodies, in order to support the Company's business
markets, affecting the decisions of investors and companies he recent international sanctions resulting from the Russian-Ukrainian conflict play a crucial role in a global context strongly polarised by geopolitical factors hese measures	business • More timely than competitors in complying with complex regulations • Redirection/creation of new business areas	For constant compliance with environmental regulations, also in line with the needs of consumers who are increasingly attentive to sustainability issues, oste taliane is progressively adapting its products to regulatory requirements in the G area (sustainable investment products, responsible investment products, etc )
aim to economically and strategically weaken those involved in the conflict in order to undermine their ability to sustain the ongoing invasion campaign he impacts of such sanctions on the political and economic scenario of the coming years will be significant and diverse: politically, they could intensify international tensions and influence the balance of power between the nations involved; economically, sanctions could have significant effects on the economies of the countries involved, as well as on	• ncreased security and awareness in the use of technologies that make use of artificial intelligence components	he oste taliane Group's ntegrated Compliance process, as opposed to traditional models based on control systems structured by single specialist, is based on a structured and coordinated approach to compliance that combines multiple needs, through the integration and rationalisation of existing risks and controls he activities of this process are carried out in such a way as to ensure, for example, the in-depth examination of the context, including the monitoring of the national and international political agenda, the views of legislators and regulators, and the position of competitors he latter involves the definition of the company's interest and position, including the formulation of proposals for regulatory changes and additions, as well as the

preparation of documentation representing strategic business choices for institutional stakeholders and authorities At the same time, the analysis of regulatory

global supply chains and international financial markets

he legislator will also have to take into account another impactful subject in the evolution of regulation: Artificial ntelligence ome jurisdictions have already introduced specific laws and regulations to address the ethical, social, economic and legal challenges associated with the use of A , while others are still defining their regulatory approaches However, it is important to balance the need for regulation with innovation and technological development in order to promote safe and ethical use of A without holding back innovation and progress

Global regulations can also influence efforts to achieve sustainable development goals Unclear or conflicting regulations can hinder the international collaboration needed to tackle crucial environmental and social challenges such as climate change, poverty and inequality

Trend: ncreasing

Risks impacted:

• Compliance
• Operational
• Reputational
• G

SBUs impacted:

• Mail, arcels and Distribution
• ayments and Mobile
• Financial ervices
• nsurance ervices

requirements involves an investigation to understand whether or not new regulations or significant changes to existing regulations are applicable to the operations of the business and/or the activities performed by the Group

Confirming the centrality of the Group's principles of integrity and transparency, oste taliane was the first talian company to obtain certification on Compliance Management ystems - O 37301, for the management of ntegrated Compliance to oversee the processes of design, development and delivery of ostal, Financial and Logistics ervices in the areas of administrative, accounting and fiscal responsibility

PANDEMIC AND INFECTIOUS DISEASES:

egative effects on oste taliane's business from the spread of new pandemics globally

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
n an increasingly globalised world, the emergence or mutation of viruses and bacteria can have serious impacts on the macroeconomic environment, disrupting national economies and undermining the health of the population, with consequent impacts on business operations and consumer behaviour n particular, globalisation and the interconnectedness of peoples, climate change, accelerated urbanisation and overcrowding in urban areas, as well as large migration flows, favour the rapid spread and proliferation of infectious diseases n addition, antimicrobial resistance is increasing due to the overuse and misuse of antibiotics Finally, global food trade can contribute to the spread of disease through the transport of contaminated food Trend: table Risks impacted:	Negative impacts: • ossible economic repercussions from a global recession, resulting in a reduction in consumption of the products offered by oste and difficulties in dealing with recovery • Adoption of new work models, which can create greater exposure to cyber attacks and fraudulent use of data • Difficulties in the timely management of new pandemics and inability to guarantee business continuity in the provision of its services • Amplification and acceleration of the effects of the main existing or emerging risks (e g , disruption of the supply chains needed to carry out oste taliane's business activities and remote management of personnel) • Focusing attention on the development of the pandemic, with reputational impacts due to reduced commitment to G issues (e g reduction of environmental investments) Opportunities: • ncreased efficiency and productivity due to the adoption of remote working models and digital solutions to support the business	he experience gained in the management of the health emergency resulting from the spread of Covid-19, has allowed the Group to develop operating methods that have significantly reduced the potential impact on business continuity (e g organisational measures to reshape operations for the branch network and logistics postal activities; purchase of laptops and software to carry out activities in smart working mode; expansion and strengthening of tools for remote connection, managing travel) n particular, the Group has been actively involved in constantly monitoring the evolution of the virus, which has allowed proactive management of its effects, also in the long term, through investments in new technologies, in the security of infrastructures and in personnel training, making it possible to provide services in compliance with the security protocols necessary to combat the spread of Covid-19 he controls implemented during the pandemic may represent useful resources for the management of any future emergency conditions n particular, the Covid-19 pandemic has fostered the implementation of business models based on an omnichannel strategy, forcing companies to adopt liquid and open operating models that combine technological innovation, data management at the service of the ecosystem, and digital and customer-oriented operations to successfully cope with sudden changes in the market n fact, the omnichannel strategy has transformed oste
• trategic • Operational • Compliance • Reputational • Financial and nsurance • G SBUs impacted: • Mail, arcels and Distribution	• Acceleration of the transition to digitisation, with a consequent increase in demand for the digital products offered by oste taliane • ncreased business opportunities due to changes in consumer needs, based on meeting the needs determined by the effects of the pandemic on the evolution of the socio-economic context • Cost reduction (e g travel; property management)	pandemic and the financial upheavals produced by the war in Ukraine and the sraeli- alestinian conflict With regard to the eventual management of new emergency measures and/or a new pandemic, the Group can leverage some specific strengths linked to the diversification of its activities, its multi-channel approach and the growth of its digital business, which ensure the service is also provided outside traditional ost Offices he majority of the Group's overall revenue will not be linked to short-term commercial activities and the business model of Banco osta is capital light, not assuming credit risk Moreover, the pandemic has accelerated the Group's digitalisation path, which has, therefore, not only developed digital products and services, sustainable over time, in the postal, insurance, financial and payment areas, but has also introduced new ways of selling and
• ayments and Mobile • Financial ervices • nsurance ervices Pillars and material topics impacted: Innovation nnovation and digitisation of products, services and processes Creating value for the country Dialogue and transparency in relations with the authorities		communicating with customers, such as the introduction of the customer care service intermediated by artificial intelligence via voice (voicebot) and chat (chatbot and appbot), with the aim of promoting a radical cultural, organisational and technological change in the assistance model, relieving operators of the most repetitive tasks, allowing them to dedicate themselves to activities requiring human intervention and to the management of more complex and emerging situations n addition, oste taliane, in response to the health emergency, pursues sustainable development by continuing to invest in projects aimed at strengthening G initiatives, as identified in the ustainability strategy

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023

TECHNOLOGICAL INNOVATIONS:

Adverse consequences for people, businesses and ecosystems due to the development of innovative technological solutions (e g digital inequalities, digital market concentration, etc )

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
Digital transformation and technological advances have not only created a wide range of benefits for companies, but have also amplified the risks that need to be understood and managed n particular, the development of technology is a process that generates impacts that move in a dual direction: positive, for innovations that allow us to pursue more efficient, sustainable and flexible solutions; negative, due to the consequences that robotics and data centres can have in terms of potential cyber threats, polluting emissions and energy consumption n addition, due to the widespread adoption of agile working, the boundary between work and private life becomes more blurred and there is greater isolation of people, while at the same time requiring companies to implement upskilled and reskilled programmes with regard to digital skills for workers n view of the activities carried out by oste taliane, it is necessary to consider that the e substitution is drawing a new market perimeter, produced by the exceedance of the digital market (electronic communications) and the arcels segment (especially due to the spread of e-commerce), as well as changes in the habits and behavioural patterns of the population	Negative impacts: • nability to maintain attractiveness, due to the excessive digitisation of the products and services offered, towards part of oste taliane's traditional customers and/or potential target customers not reachable due to the digital divide • nadequacy of standard products for changing consumer needs • Difficulty in responding in a timely manner to the digital drive in the sectors in which oste taliane operates • nterruption of digital services provided by oste taliane • nability to provide employees with the same levels of security both in agile mode and at company facilities Opportunities: • Development of products in line with different consumer needs, also leveraging technological innovations • Development of new technologies to strengthen oste taliane's processes • Greater ability than competitors to understand customer needs, also with reference to targets in the "digital divide" • ncreased demand for the products offered by oste taliane, thanks to customer confidence in its handling of privacy and sustainability issues • Development and growth of oste taliane employees in terms of digital skills	For oste taliane, innovation and digitalisation are two central drivers of strategic progress and enable it to guarantee its customers innovative technological solutions, also through the integration of its own products and services with those of third parties oste taliane has embarked on a digitalisation process that has influenced both its offer and business processes through the evolution of its omnichannel distribution model, which allows the Company to deliver services in an agile manner and in step with needs of customers hrough a digitalisation of services, oste taliane intends to make integrated digital solutions available Communication channels with customers are also constantly evolving, which has led to the development of Artificial ntelligence solutions hese solutions have several positive impacts for both customers and the Company, as they allow for a 24-hour customer service 365 days a year, which contributes to bringing part of the population closer to and familiarising them with advanced technological systems Among the actions aimed at reducing the digital divide, in recent years, oste taliane has undertaken a path of digital education of citizens, carried out through the organisation of several training sessions with the aim of providing a valuable contribution to the digitisation of taly and by expanding the dedicated section of the website with video clips, games, infographics, podcasts and a glossary hrough the programme, the Group has adopted a highly inclusive approach in order to facilitate and simplify the use of new technologies to all its customers and beyond

Trend: ncreasing

Risks impacted:

• Operational
• trategic
• Compliance
• Reputational

SBUs impacted:

• ayments and Mobile
• Financial ervices
• nsurance ervices
• Mail, arcels and Distribution

nnovation and digitisation of products, services and processes

Creating value for the country

upport for the socio-economic development of local communities

Customer experience

Cyber ecurity, ecurity and rivacy

Capitals impacted:

oste taliane set up the " mart Letter Box" project to renovate classic letter boxes and equip them with o technologies and sensors n addition to sensors for detecting mail, oste taliane's new mart Letter Boxes have been equipped with sensors capable of detecting certain parameters such as temperature, humidity, atmospheric pressure, particulate matter and nitrogen dioxide More than 550 second-generation mart cassettes were installed throughout taly in 2023, which when added to the letter boxes installed in 2022 will total 707

he Group has identified human capital as a vital resource for innovation his is why, in addition to continuing its policy of open innovation and inorganic growth by acquiring or taking majority stakes in some of the most innovative companies and start-ups, it is also implementing a policy of "reshoring", hiring and bringing back home several "brains" that had emigrated for work n this way, the company contributes to the digitalisation and modernisation of the country and combines the virtualisation of services with a constant and qualified presence on the territory

n order to coordinate and contribute to the direction of initiatives aimed at increasing the profitability, impact and future sustainability of the oste taliane Group, the "Open nnovation" team was formed, a group with diverse multi-industry experience and areas of expertise united by a passion for innovation n particular, the team aims to disseminate knowledge of the most innovative trends in technology and business performance within the Group, as well as to identify valuable partners to improve current products and services By defining the positioning of the medium- and long-term target on innovation issues, the aim is to seize the challenges in advance to bring about changes in the Group's operational and business areas

Moreover, with the new olis roject, oste taliane intends to foster the economic, social and territorial cohesion of the country and overcome the digital divide in small towns and inland areas, making a widespread, concrete and resilient contribution to the missions aimed at digitising the country and ensuring greater social inclusion and cohesion n particular, the creation of an innovative technological infrastructure for the provision of services to citizens and the accompaniment of A, citizens and businesses in the adoption of the necessary digital skills, reducing the gaps that exist today, offer the tools to compete globally and boost the local economy

he olis project, D, the launch of fibre connection services and the entry into the energy market show how oste taliane is a facilitator of the country's technological transformation

CYBER RISK:

Risk of incurring economic/financial losses and/or reputational damage as a result of the occurrence of accidental events or malicious actions relating to the security of the information system (hardware, software, databases, sensitive data, etc ), also in view of the constant increase in the use of information systems

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
	Negative impacts:	Managing cyber security risk is a key priority for the Group, considering the increasing number of cyber

he technological evolution of the business and the wider use of innovative digital solutions, requires increasing attention to the aspects of cyber security Attacks on systems can compromise infrastructure, allowing company and customer data to be stolen or used, or malware to be planted, in order to access company funds and/or damage the reputation and brand

he increasing demand for personal identification and authentication, including through the use of biometric identifiers, may increase the risk of fraud and identity theft

n relation to cyber security, there is a proliferation of regulations aimed at ensuring the security of products with digital components, governing the design and development phases of the products themselves, as well as their entire life cycle his implies the creation of a comprehensive cyber security regulatory framework that facilitates compliance for hardware and software manufacturers he ultimate goal is to improve transparency regarding the security features of digital products in order to enable both companies and consumers to use them safely

t is also essential to consider technological advances in the field of Artificial ntelligence, which could potentially lead to new forms of cyber attacks capable of overcoming the preventive and defensive measures implemented by oste taliane

Trend: Increasing

Risks impacted:

• Operational
• trategic
• Compliance
• Reputational

SBUs impacted:

• ayments and Mobile
• Financial ervices
• nsurance ervices
• Mail, arcels and Distribution

Pillars and material topics impacted:

Customer experience

Cyber ecurity, ecurity and rivacy

• Removal of sensitive information for oste taliane, with economic, reputational and compliance impacts (e g removal of biometric data of customers acquired for the management of payment systems)
• ervice disruptions caused by attacks on information systems and/or communication networks
• Deletion or deterioration of data

Opportunities:

• Higher infrastructure security levels than competitors
• ncreased customer confidence in the robustness of oste taliane's structure to protect sensitive data
• ncreased efficiency and productivity due to the adoption of tools to guard against cyber attacks
• ncreased awareness of oste taliane employees on cyber security issues through specific training programmes

threats and the sensitivity of the data managed oste taliane is committed to protecting company data with the aim of safeguarding its customers and all its stakeholders through technologically advanced protection systems and in accordance with the measures set out in the relevant regulations

he function responsible for security assesses the cyber risk on a monthly basis, based on technical security checks conducted on three applications:

• Vulnerability Assessment: the process of identifying, measuring and prioritising system vulnerabilities, performed with special tools twice a year for each application;
• Code Review ( tatic and Dynamic): process of checking the source code of an application to verify that the correct security controls are in place and that they are working as intended By means of special tools, the verification is carried out of both the source code (" tatic CR") and of the code in execution ("Dynamic CR");
• enetration est: process of evaluating the security of a system or a network through the simulation of attacks that aim to gain undue access to the system, performed on a specific perimeter of applications

hese precautionary measures combine with other two essential parameters to ensure effective and efficient management of potential risks in the Company: patching and hardening

oste taliane has also undertaken a series of additional initiatives:

• developed ecurity lanning, defining and implementing a methodology for planning technical security audits deriving from regulatory/contractual requirements and from the ecurity By Design process;
• extended the scope of Cyber Risk analysis to include Banco osta, oste ay, osteVita, oste Assicura, oste Welfare ervizi and other compliance/security areas;
• set up the nformation ecurity Committee D O, a periodic working table between the nformation ecurity and Digital, echnology & Operations functions with the aim of jointly planning and directing security activities and identifying areas for improvement;
• established the Fraud revention Centre, which plays a key role in protecting the company's customers from financial fraud and scams, using advanced monitoring systems, risk analysis, collaboration with the relevant authorities and awareness-raising to prevent and counter fraudulent activities

n relation to the Russian-Ukrainian crisis, oste taliane has raised the levels of monitoring and attention to security events and strengthened cyber intelligence activities, in order to prevent and/or intercept potential cyber attacks against the Group n addition, several training initiatives were launched for internal staff in order to minimise human factor risks and their impacts n the area of cyber security, oste taliane has obtained

• O/ C 27001/2013, standard for establishing and managing an information security management system he standard also includes the requirements for assessing and dealing with security risks, which are customised according to the needs of each

the following certifications:

organisation • O 2000-1/2018, the international standard for ervice Management, focusing on the quality of these services t is based on risk management, with the aim of minimising the risks associated with increasingly harsh customer reactions in situations of "discrepancy" with their expectations, needs and requirements, including incident management, requests, continuity, accessibility, service level, service catalogue and service capacity

n order to guarantee Group-wide supervision of cyber security and data protection activities, and to actively combat cybercrime, in 2021, oste taliane set up C R (Computer mergency Response eam) he team is made up of security experts who carry out their duties by operating in real time 24 hours a day to prevent risks, manage incidents affecting company systems and develop actions in response to cyber events, reinforcing in this way the defence capability of the entire Company Moreover, oste taliane collaborates with C A C ( ational Centre Against Cybercrime for the rotection of Critical nfrastructure) of the ostal olice

n order to ensure adequate levels of confidentiality, integrity and availability of data, information and services provided to customers, oste taliane has also developed and adopted a specific rivacy framework he rivacy function ensures a single Group-wide oversight for all responsibilities related to privacy issues and oversees the development of the framework oste taliane envisages the figure of the Data rotection Officer, as a privacy expert who assumes responsibility for observing, evaluating and directing the management of personal data processing, in accordance with GD R he rivacy ervice Centre operates within this function and is in charge of representing a single point of reference on privacy matters for customers, as well as of collecting and managing in an efficient and centralised manner all requests received from them

n order to make the entire corporate structure secure and resilient to possible cyber attacks, oste taliane has implemented specific training programmes aimed at employees on cyber security issues, so as to educate them on the behaviour to adopt in the event of cyber attacks

CLIMATE CHANGE:

external conflicts Moreover, the need to mitigate and adapt to climate change requires political and diplomatic action at national and international level, not helped by the geopolitical instability of recent years

ossible negative impacts of climate change phenomena on oste taliane's business and reputation

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
n the coming decades, a rise in average temperatures of 3 degrees Celsius compared to pre-industrial times could trigger disastrous chain effects henomena such as rising sea levels, ocean acidification and loss of biodiversity, as well as hurricanes, floods, forest fires and droughts, become more frequent and intense, altering terrestrial and marine ecosystems uch events have catastrophic effects on local communities, causing enormous damage to infrastructure and natural resources with long-term economic consequences; financial losses are often significant, especially in the agricultural, tourism, and insurance sectors Climate change can destabilise societies and accentuate socio economic inequalities, contributing to political tensions and internal and	Negative impacts: • Restrictions on oste taliane's business operations due to extreme weather conditions • nadequacy of the products and services offered with respect to the demands of consumers increasingly driven by sustainability issues • Underestimating sustainable development and not actively pursuing decarbonisation can lead to serious consequences in terms of corporate reputation, with negative impacts on stakeholder trust, market opportunities and overall company value	oste taliane analyses, among others, the risks related to climate change also in relation to the long term pecifically, the risk management model adopted by the Group considers both the possible impacts that climate change-related phenomena may have on the business of oste taliane (indirect impact) and those that Company's activities may have on climate (direct impact) he process of identifying and assessing risks and environmental management methods also extends to counterparties, impacting the procurement processes and any extraordinary finance transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental
	Opportunities: • ncreased business opportunities due to changes in consumer needs (e g development of low emission services; development of investment and insurance products for climate adaptation) • ossible access to new markets and new customer segments requiring insurance	protection, also through a multi-dimensional analysis that takes into account parameters such as: possession of environmental, quality and energy performance certifications and adoption of environmental management systems, ethical standards of conduct and Minimum nvironmental Criteria (M C) n order to classify climate-related risks and opportunities, oste taliane takes different drivers into

• Advantages deriving from the greater reliability of the supply chain and oste taliane's improved ability to operate in various conditions compared to its competitors

coverage

opportunities, oste taliane takes different drivers into consideration referring to two macro-areas (transition and physical risks) n addition to defining the associated opportunities, the Group provides for specific mitigation measures to respond to the risks identified and associated with each driver oste taliane defined a perimeter in the risk assessment process that takes into consideration not only direct activities, but also

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023

he combat against climate change, therefore, is not an option but a must t is therefore necessary to consider these aspects when defining the strategies and operational activities of companies

Trend: ncreasing

Risks impacted:

• Reputational
• Operational
• trategic
• Compliance

SBUs impacted:

• Mail, arcels and Distribution
• ayments and Mobile
• Financial ervices
• nsurance ervices

Pillars and material topics impacted:

Creating value for the country

upport for the socio -economic development of local communities

Dialogue and transparency in relations with the authorities

Green transition

nvironmental impacts of logistics nvironmental impacts of real estate facilities

Sustainable Finance

ntegration of G factors into investment policies

ntegration of G factors into insurance policies

Capitals impacted:

downstream and upstream operations, including customers in the final analysis, given that they are the main beneficiaries of Group products

he correct identification and assessment of climate related risks and opportunities is also ensured by listening to stakeholders hey are periodically involved in the Multi -stakeholder Forums organised by oste taliane and have a reporting system that allows them to bring any perceived risks to the attention of the Company

With reference to physical risks, such as extreme weather events and changes in rainfall trends, oste taliane has adopted a continuity business plans and measures aimed at preventing physical damage to structures, to ensure business continuity n addition, for the coordination of emergency and recovery activities, the Group maintains a dialogue with institutions (e g Civil rotection, Civil Defence) as well as interfacing with relevant bodies and international protection and defence organisations (e g participation in drills or other initiatives, etc )

Furthermore, with regard to oste taliane's direct impacts, and considering its widespread presence within the country and consequent environmental impact resulting from carrying out its normal activities, oste taliane adopts a responsible approach aimed at reducing its environmental footprint and contributing to the country and economy's low -carbon transition

n line with its decarbonisation strategy and in implementation of the guidelines for the exercise of voting rights and engagement activities and for investment in sensitive sectors, oste taliane, through its subsidiaries oste Vita and Banco osta Fondi GR, has joined Climate Action 100+, an international collaborative engagement initiative to raise awareness of climate change issues among the world's largest greenhouse gas emitters

he portfolios of Banco osta Fondi GR and oste Vita are periodically subjected to G analysis to assess their degree of social responsibility, and carbon footprint, with the aim of mitigating any risks he results obtained both for Banco osta Fondi GR and oste Vita, are higher than the G performance of reference benchmarks

As part of the oste taliane Group's strategy for pursuing its ustainability objectives, the integration of G principles into its investment processes is also of particular importance, with investments in sectors that contribute to the ustainable Development Goals (" DGs") (e g investments in bonds in the "Green", " ocial" and " ustainable" categories in line with the standards and principles defined by the nternational Capital Market Association)

oste taliane, in accordance with the main regulatory trends and in response to the growing requests from the financial community and the main stakeholders, reports information regarding climate change on the basis of the areas defined by the CFD: Governance, trategy, Risk Management, Metrics and Objectives For further details,

reference is made to the paragraph "MANAGING CLIMATE CHANGE RELATED RISKS AND OPPORTUNITIES "

n order to reduce the direct impact that oste taliane's activities may have on climate, the Group is making constant progress in using energy sources that do not use fossil fuels (e g solar energy from photovoltaic panels on buildings) and in reducing energy consumption (e g replacing neon lights and using L Ds), partly in order to deal with potential sudden changes in energy prices (already 99% of the oste taliane Group's electricity needs come from renewable sources)

n addition, over the years, oste taliane has inaugurated photovoltaic plants for energy production Poste Italiane Group Report on Operations at 31 December 2023

and undertaken a series of initiatives to ensure that its buildings are increasingly sustainable, including initiatives to reclassify sorting centres, with a view to decarbonising buildings

Among other things, in line with having subscribed to the aris Agreement and the ew Green Deal, oste taliane has committed to reducing its emissions by 30% by 2025 and has set itself the ambitious goal of making its contribution to achieving the international carbon neutrality objectives by 2030, well ahead of the timeframe defined by the uropean Union

EVOLUTION OF THE PAYMENT SYSTEM:

egative change in consumer purchasing behaviour for oste taliane in relation to the payment instruments to be used (e g cryptocurrencies, fintech, etc ) also due to the introduction of new payment methods

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
nternet access and the use of electronic payments is spreading worldwide Consumers who shop on line are also looking across borders for the products and services they want, and are developing new habits and needs geared towards the use of electronic payment solutions	Negative impacts: • oste taliane's untimely response to emerging payment trends resulting in loss of market share • nability to maintain attractiveness to traditional customers, potentially more averse to digital channels, for oste taliane's electronic payment services	n order to provide new payment solutions and respond to the changing needs of its customers, oste taliane is developing new digital payment services, intercepting and driving customer habits in the context of digital transformation, through the creation of innovative products and services that simplify everyday life, such as:
he payments industry is undergoing major changes related to the advent of new technologies and the development of Artificial ntelligence,	• ncrease in oste taliane's competitors in the payments sector (e g organisations introducing new payment systems)	• oste ay Connect, first integrated payment and mobile product that allows managing, through a single app, telephony and payment services in an intuitive and secure way;
as well as the proliferation of relevant legislation and regulations (e g the uropean ayment ervices Directive - D2)	• ncreased digital transactions and increased risk of fraud and security breaches • ntry of new players in the payment industry	• oste ay app, the e-wallet that allows paying for purchases directly with a smartphone in all stores that accept contactless payments, thanks to the recent introduction of the Google ay service in the App;
Companies must be ready to adapt and innovate in order to capitalise on new opportunities and mitigate the associated risks	Opportunities: • Adoption of strategies to increasingly personalise the offer of payment services	• Codice oste ay, an app that allows buying in stores using a QR Code and getting discounts and benefits at affiliated partners During the year, the user experience of the Code payment mode was evolved
Trend: Increasing Risks impacted: • Operational	• Adoption of new technologies that can be extended to the current customer target of oste taliane	through the launch of "QR Code Web", the solution that allows the cardholder to frame the automatically generated QR code on the payment page, without additional clicks;
• trategic • Reputational • Compliance	• egmentation and differentiation of the offer, through the expansion of oste taliane's customer target (e g young people)	• Collaboration agreements with start-ups for the development of innovative solutions in the financial services and payments area;
SBUs impacted: • ayments and Mobile	• Creation of a specific offer for oste taliane's digitally evolved customers	• With a view to expanding its services, oste ay pA has made available the possibility of making contactless payments also to customers with i hones,
Pillars and material topics impacted: Innovation	• Launch of new products (e g platforms and instruments for cryptocurrency payments)	Apple Watch, i ads and Macs via Apple ay, giving them the option of adding their oste ay card, whether prepaid or debit card associated with their Banco osta current account, to the Apple wallet
nnovation and digitisation of products, services and processes Customer experience		n addition, oste taliane established the Fraud revention Centre, which plays a key role in protecting the company's customers from financial fraud and
Quality and customer experience		scams, using advanced monitoring systems, risk analysis, collaboration with the relevant authorities and awareness-raising to prevent and counter fraudulent
Capitals impacted:		activities

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023

MOBILITY REVOLUTION:

eed to review business models and delivery operations due to the introduction of new mobility models, technological evolution of vehicles, sharing mobility

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
he transport sector is undergoing significant transformation, driven primarily by technological innovations and the impact from digital on the habits, needs and preferences in terms of mobility of passengers and companies	Negative impacts: • Restrictions on oste taliane's operations, with particular reference to deliveries, due to traffic restrictions (e g restrictions on polluting vehicles) • Limited availability of "green" vehicles suitable for carrying out oste taliane's logistics and delivery activities	oste taliane, aware that the vehicles used to carry out its logistics and delivery activities do not lend themselves to any type of optimisation, has been replacing them with equivalent electric-powered vehicles in recent years, improving its fleet in order to reduce atmospheric pollution Among companies in the utility sector, oste taliane has one of the largest fleets of 100% electric commercial vehicles in the country
Over the years, the revolution in mobility and automation of machines and processes will lead to a radically different world, characterised by	• egative impacts on the environment and on oste taliane's reputation due to the use of polluting vehicles	During the year, oste taliane continued to implement sustainability initiatives, with particular reference to reducing the environmental impact of the corporate fleet,
greater efficiency, sustainability and	Opportunities:	through the use of additional alternative fuel vehicles (electric, methane and L G)
connectivity However, it will be essential to address the social, economic and regulatory challenges that accompany this transformation to ensure that its benefits are fairly distributed and its potential risks mitigated	• Reduce the Group's total energy consumption from non-renewable sources (e g fossil fuels) • Reduction of emissions related to the use of the vehicles that make up the company fleet • Leaner and more efficient management of operations	he Fleet Renewal lan, which had already been activated in 2019 with the aim of replacing the entire fleet of vehicles used for the delivery of postal products with green vehicles, was continued in 2023 through measures to reduce energy consumption, lower atmospheric emissions, increase safety and increase
n addition, the shift towards more sustainable modes of transport, the control of polluting emissions, the environmental ustainability of major works are issues that increasingly guide the preferences of citizens and the choices of transport operators rend: Increasing	• Cost reduction	load capacity for delivery oste taliane demonstrated its commitment to pursuing the plan for the complete renewal of its vehicle fleet, increasing the green component of the fleet itself, through the introduction of electric and hybrid cars and motorbikes in line with G targets of a 40% reduction in emissions n this regard, 14,189 alternatively fuelled vehicles (electric, natural gas and L G) are already deployed in the fleet he Company has gone from 11% green vehicles in 2016 to
		44 4% in 2023, with the aim of replacing the entire company fleet with low-emission vehicles by 2024
Risks impacted:
• Operational		he total number of vehicles with reduced environmental impact introduced from 2019 is 26,225, and during the year, oste taliane completed the inflotment of 2,169
• Reputational		electric vehicles, 750 hybrid electric or methane vehicles, and 696 low-emission vehicles he interventions are in
• Compliance		line with the goal of reaching 27,800 vehicles by 2024 As regards the purchase of logistics services, oste
SBUs impacted:		taliane maintains conduct consistent with sustainability issues, selecting and rewarding suppliers in line with the
• Mail, arcels and Distribution		environmental, social and governance issues that the oste taliane Group promotes n particular, the Company verifies the technical and professional suitability of its suppliers by requesting, for qualification
Pillars and material topics impacted:		purposes, the possession of specific requirements, including composition and type of vehicles in the fleet
Integrity and transparency
Legality and incorporation of G in the procurement process

Creating value for the country

upport for the socio-economic development of local communities

nvironmental impacts of logistics

Green transition

CHANGING CONSUMERS' PURCHASING AND INVESTMENT CHOICES ACCORDING TO THE MACRO-ECONOMIC SCENARIO:

Changes in consumer purchasing habits as a function of the macro-economic scenario and customer needs and expectations

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
n addition, the current macro economic context - characterised by high instability, volatility and persistent inflation - affects consumers' purchasing power and investment choices (e g as a function of market rates) n particular, during periods of economic instability or uncertainty, consumers tend to be more cautious in their spending: they might avoid impulsive purchases or risky investments, preferring to buy cheaper products and services or concentrate their spending on essential goods and services, such as food, basic commodities and health services Moreover, rising low interest rates and volatile financial markets may influence the choices of investors,	Negative impacts: • Loss of customers due to oste taliane's failure to adapt its products/services to customer needs • Difficulty in developing reliable forecasting models that allow the Group to predict market developments • Reduction in purchasing power and change in consumers' investment choices that could have negative effects on oste taliane's margins and liquidity, as well as on the attractiveness of the products offered Opportunities:	n addition to distinguishing itself through a diversified business structure that allows it to benefit from a constant physiological balancing effect between the trends affecting its businesses, the oste taliane Group has historically demonstrated resilience in times of economic uncertainty and financial turbulence, indeed establishing itself as a "safe haven" for savers, thanks to a portfolio of financial offerings characterised by products with low risk exposure and volatility n response to growing consumer awareness of environmental issues, the range of Banco osta and oste Vita investment products has been increased, with investments oriented towards assets with strong sustainability characteristics
	• ncreased business opportunities due to changes in consumer needs, including through the adoption of strategies of increasing customisation of the offer • Greater ability than competitors to understand customers' needs • Development of socially and environmentally oriented products and services	As far as the evolution of the range is concerned, Banco osta Fondi GR's objective is to carry out over time a gradual transformation of the existing funds as well, integrating environmental, social and governance sustainability criteria into the investment policy of each
who may prefer investments that are considered safe or less volatile, such as certificates of deposit or government bonds With regard to the financial services offered by oste taliane, if consumers perceive a favourable economic situation and feel secure about the future, they may be more inclined to take financial risks Conversely, if consumers are pessimistic about the economy and fear for their financial security, they might reduce		oste taliane continued its efforts to expand its proposal of financial products that promote environmental or social characteristics, with a view to channelling an ever increasing amount of capital in favour of sustainable development and meeting the demands of savers and investors attentive to the creation of positive social environmental value through the investment products they subscribe to his commitment was shared by both Banco osta Fondi GR and oste Vita, which, with reference to its range of insurance investment products, finalised the configuration and launch of a product with a strengthened profile in terms of G integration in its investment activities
investment activities or direct them towards lower-risk products Changes in consumer purchasing and investment choices in response to the macroeconomic scenario can have a significant impact on the economy and market dynamics in the long run, influencing consumption through changes in consumption patterns, changes in investment sectors and overall economic growth		oste taliane has equipped itself with a Web Opinion Monitoring (WOM) ervice, through which it collects and analyses data from the desired sources of interest, such as social networks, App stores, reviews of ost Offices on Google Maps, public on-line information sources, blogs, forums, in order to generate real-time reporting on all topics of interest he service responds to the needs of different member structures and consolidates in a single solution the services used by the various functions of oste taliane and Group companies he areas for improvement that have emerged in relation to customer

feedback constitute an important stimulus for process assessment and revision activities, together with the support activities functional to maintaining quality

Poste Italiane Group Report on Operations at 31 December 2023

Risks impacted:

• trategic
• Operational

SBUs impacted:

• nsurance ervices
• Mail, arcels and Distribution
• ayments and Mobile
• Financial ervices

Pillars and material topics impacted:

Innovation

nnovation and digitisation of products, services and processes

Customer experience

Quality and customer experience Cyber ecurity, ecurity and rivacy

Sustainable Finance

ntegration of G factors into investment policies;

ntegration of G factors into insurance policies

Capitals impacted:

certifications and those identified by the "inter-functional communities"

Finally, oste taliane pays particular attention to the quality of the products and services it offers with a view to constantly improving customer satisfaction, by carrying out a dual monitoring process, considering both the quality delivered and the quality perceived, on the basis of a K system, built around the individual business units t constantly monitors the objectives and performance of the services provided and provides progress and trends to the top management through regular reporting

GEOPOLITICAL INSTABILITY

ossible negative impacts on oste taliane's business due to geopolitical tensions and international conflicts and related escalations

Negative impacts:
• Difficulty in developing reliable forecasting models that allow the Group to predict market developments • ncreased raw material costs and procurement difficulties (e g oil, gas) • Business activities being suspended in areas involved in the conflict (e g international shipments stopped) and/or restrictions on international trade relations (e g rade Compliance bans)	oste taliane continually monitors the political, social and macro-economic context and regulatory aspects that could impact on its business, so as to identify and prioritise the response measures to be undertaken based on the different macro-economic scenarios and geopolitical projections n particular, as part of the ntegrated Compliance process, oste taliane continuously monitors the external regulations relevant to the Group and translates all the regulatory principles into the body of rules necessary to guarantee their application, also with reference to legislation applicable to international trade relations
• ubstantial changes to aggregated market demand due to possible price inflation, making forecasts in company strategic plans less remunerative • oor company liquidity due to difficulties in securing credit lines or it becoming impossible to utilise existing loans Opportunities: • Acceleration in the energy transition	n addition, oste taliane carries out checks on counterparties in order to assess their legal, technical and professional requirements, financial stability and identify variables with an impact on revenue and costs, also in consideration of geopolitical scenarios

local crises quickly become global crises, with huge economic, social and geopolitical repercussions and resulting in new priorities in terms of countries' domestic policies We could see a de-globalisation of the economy with consequent reshoring of the supply chain

Geopolitical instability exposes countries to new risks from attacks on strategic infrastructure or digital infrastructure (communication networks, data centres or key government systems) When such infrastructure is damaged, there are major repercussions in economic terms, as well as potential reputational impacts

Trend: Increasing

Risks impacted:

• Strategic
• Operational

SBUs impacted:

• nsurance ervices

Annual Report 2023 Poste Italiane Group Report on Operations at 31 December 2023

• ayments and Mobile
• Financial ervices

Pillars and material topics impacted:

Capitals impacted:

EVOLUTION OF HEALTH AND WELL-BEING

Growing demand for customised health services due to the increasing focus on health protection and safeguards

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
n the aftermath of the Covid-19 health crisis, there has been a steady increase in the focus on forms of health protection and safeguards in which welfare and improved quality of life play a key role, resulting in a greater demand for personalised health services ncreased life expectancy is, however, accompanied by an increased incidence of chronic diseases that have replaced infectious ones However, in taly, the presence of private healthcare provision is still limited compared to other countries, while the costs of the public healthcare system are increasing at a faster rate than overall spending here is a progressive movement towards a system in which citizens supplement public social security and health services with private insurance policies in order to guarantee	Negative impacts: • nadequacy of the insurance products offered with respect to the growing consumer demand for health care that is defined on the basis of the specific needs arising in different periods of life • nability to maintain attractiveness in a constantly growing and competitive health insurance market • Underestimation of population trends and failure to take into account the increased incidence of factors associated with the incidence of chronic diseases • ncreased personnel costs related to healthcare • nability to provide employees with adequate health care facilities • nability to align with Group objectives of supporting and sustaining territories and including weak population groups	hrough correct and effective implementation of risk management processes, the oste Vita nsurance Group is committed to contributing to the protection of the community and the sustainable development of society he oste taliane Group is, in fact, committed to defining and marketing its products taking into account the company's objectives, but also the enhancement of the social role of insurance protection and economic inclusiveness During the development phase of the offer, the Group focuses on the inclusion of more vulnerable social groups, such as young people, the elderly and people with special pathologies Furthermore, in risk coverages such as term life or health policies, which play a crucial social role, the Group seeks to expand the potential number of policyholders by adopting inclusive underwriting criteria A tangible example of this commitment is oste Assicura, which is dedicated to bridging the insurance gap by providing cover for companies and their employees on a consistent basis, in line with the Company's social responsibility n order to adequately respond to consumer expectations, the Group monitors its initiatives and the
themselves a level of care appropriate to their needs, with the ever increasing risk of under-insurance of the weaker sections of the population who cannot afford such services n this context, the insurance activity carried out by the oste taliane Group through the oste Vita insurance group can play a fundamental role, as the company,	Opportunities: • Growth opportunities by exploiting the potential of a rapidly changing market and increasing demand for healthcare • Opportunities to ensure the accessibility of protection also to the weaker sections of the population by contributing to sustainable development	products and services offered by promoting continuous and structured dialogue initiatives he purpose is to monitor the needs of the reference community and the degree of satisfaction with the products and services offered oste taliane uses principles of seriousness, reliability and elasticity in providing dedicated offers to all categories of customers to whom it caters, also on the basis of specific needs n this sense, " oste Vivere rotetti" represents one of the insurance offers offered by oste Assicura in the area of protection that is most recognised by customers and aims to provide an

With regard to its own people, oste taliane is committed to promoting activities aimed at improving the well-being and health of its employees also through prevention initiatives Regarding this last aspect, oste taliane organised, in collaboration with the Veronesi Foundation, a series of informative meetings aimed at employees and their families on issues related to ethics, healthy lifestyles and scientific disclosure with content proposed from an intergenerational perspective Finally, the Group ensures the health care of its employees also

integrated and modular protection and assistance

solution

through the offer of flexible and modular protection solutions based on the identification of the lifelong needs of its customers, aims to expand its market share in a sector, that of health insurance, which is constantly growing and increasingly competitive Furthermore, for the oste Vita nsurance Group, it is essential to align itself with corporate objectives, and therefore define and market its products, pursuing the objectives of enhancing the social role of insurance protection and inclusiveness through facilitating economic accessibility

Finally, the oste taliane Group considers the health and well-being of its employees to be a priority element of its human resources management strategy and, in light of the context described above, considers the risk of increased costs related to the growing need for care for its employees who cannot rely on the public health service

Trend: Increasing

Risks impacted:

• Strategic
• Reputational

SBUs impacted:

• nsurance ervices
• ayments and Mobile
• Financial ervices
• Mail, arcels and Distribution

Pillars and material topics impacted:

		People development
		taff welfare and well-being;

Occupational health and safety

Creating value for the country

upport for the socio-economic development

Customer experience

Quality and customer experience;

Cyber ecurity, ecurity and rivacy

Capitals impacted:

Poste Italiane Group Report on Operations at 31 December 2023

thanks to the activities of oste Centro Medico, the center of excellence dedicated to the care and prevention of oste taliane workers, their family members and pensioners with the aim of strengthening the medical support for employees through the provision of health care and prevention services

ARTIFICIAL INTELLIGENCE AND PROCESS AUTOMATION

Adverse consequences for employees, consumers and the environment due to the impact of artificial intelligence-based technologies

MAIN TRENDS	POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE	MAIN RISK MANAGEMENT METHODS
Artificial intelligence (A ) is playing an increasingly important role in various areas of modern society and is now a key element driving the transformation of companies in various sectors he	Negative impacts: • ncreased unemployment rate due to the replacement of work activities carried out by	nnovation and digitalisation constitute, for oste taliane, two central drivers for strategic progress and allow it to guarantee its customers innovative solutions, also through the adoption of technologies based on

average number of A functionalities used by companies has doubled in the last three years hese capabilities mainly include natural language text generation, computer vision and operation optimisation technologies

At the same time, investments in A have increased significantly over time and are expected to grow exponentially in the future

With reference to the impact of this trend on oste taliane's areas of operation, the modernisation of postal services through A is revolutionising sorting, delivery and tracking processes, making them more efficient, accurate and cost-effective n the financial sphere, A offers new opportunities in transaction security management and financial data analysis, also facilitating the detection of suspicious patterns and abnormal behaviour, thus reducing the spread of fraud and misconduct Finally, the use of A in customer service across the Group's different business units ( nsurance ervices, Financial ervices, Mail, arcels and Distribution and ayments and Mobile) enables them to understand and, in many cases, anticipate consumer requests and needs, improving the relationship between consumer and company

However, in this context, it is equally crucial to consider the negative consequences and ethical implications associated with A and its rapid development hese include the risk of increased unemployment, risks to user privacy and reputational risks associated with misunderstandings caused by the use of digital assistants

Trend: Increasing

Risks impacted:

• Strategic
• Operational
• Compliance
• Reputational

SBUs impacted:

• oste taliane Group employees with artificial intelligence tools with a consequent reputational impact on the company
• trategic risk of inappropriate use of big data and A and increased privacy breaches
• Growth of regulation in the field and consequent increase in compliance pressure
• Lack of empathy on the part of the oste Digital Assistant to understand the emotions, tone or intentions of the consumer negatively impacting customer trust, satisfaction and loyalty
• ncreased vulnerability related to technological interruptions or failures, with possible negative impacts on daily operations

Opportunities:

• Reduced waiting times for customer problem solving through the use of the digital assistant
• ro-active customer support through analysis and interpretation of data and operations
• orting and delivery efficiency through the use of artificial intelligence-based technologies

artificial intelligence in its processes, products and services, while still knowing how to manage the risks associated with such disruptive technologies

n order to manage the potential impact on employment resulting from process automation, oste taliane uses eople Analytics practices, also known as HR alent or workforce analytics hese practices involve the collection and analysis of human resources data, using statistics and other data analysis techniques his enables strategic workforce planning, combining the needs of the different business lines with appropriate management strategies hrough these tools and, in particular, through the " nsourcing and Redeployment" programme, the Group is able to identify resources that are no longer needed as a result of the A intervention and relocate them to other production sectors, ensuring that they acquire the skills required for their new roles

he Artificial ntelligence solutions adopted by the Group in the area of customer service are also constantly evolving and developing: the service system developed uses an approach in which A supports both customers and service employees

A operators (former call centre operators who have acquired new skills) work on a daily basis to improve their understanding of customers' future requests and intentions, bridging any gaps related to misunderstandings Moreover, thanks to the Group's continuous investments, the Digital Assistant is able to provide proactive assistance, based on the rapid analysis and interpretation of data and transactions made by customers on different channels n these cases, the Digital Assistant is automatically activated and suggests solutions to problems before they are even reported n addition, the oste taliane Group, with a view to continuous improvement, has implemented a feedback collection system to allow consumers to express their opinions on the functioning of the Digital Assistant, in order to identify any problems encountered in interactions with it

Compliance with regulations, internal and external policies and codes of conduct, respect for rules and the strictest fairness are elements of strategic importance for the Group For this reason, oste taliane undertakes to constantly monitor national and uropean regulations on the use of data and artificial intelligence, promptly taking all necessary measures to ensure compliance

n relation to rivacy risks, oste taliane is committed to protecting company data with the aim of safeguarding its customers and all its stakeholders through technologically advanced protection systems and in accordance with the measures set out in the relevant regulations Over the years, the company has attached great importance to the issue of personal data protection, constantly upgrading its corporate regulatory system and ensuring full compliance with current provisions and the General Data rotection Regulation (GD R)

From an organisational point of view, in addition to identifying the roles and responsibilities required by law, the oste taliane's rivacy ervice Centre is responsible for representing a single point of reference on privacy matters for customers, as well as collecting and

requests that arrive from the latter

Poste Italiane Group Report on Operations at 31 December 2023

managing efficiently and in a centralised manner all the

• nsurance ervices • ayments and Mobile • Financial ervices • Mail, arcels and Distribution Pillars and material topics impacted: People development ersonnel training and development nnovation nnovation and digitisation of products, services and processes Creating value for the country upport for the socio-economic development of local communities Customer experience Quality and customer experience;

Capitals impacted:

rivacy

Cyber ecurity, ecurity and

Annual Report 2023

Below are represented the emerging risks that have potential impacts on oste taliane's business, divided in accordance with the common metrics defined by the W F in relation to the achievement of the DGs, with reference to the time horizon in which the most significant effects of these risks are expected to manifest (now, near future, distant future), as well as according to the potential pervasiveness of the impact of these effects with respect to individual BUs (high, medium-high and medium-low)

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

Poste Italiane Group	Report on Operations at 31 December 2023

RFORMA C OF O AL A HAR
M AC R UL G FROM O GO G CO FL C
GROU O RA G R UL
MA L, ARC L A D D R BU O RA G C BU	U
F A C AL RV C RA G C BU U
URA C RV C RA G C BU U
AYM A D MOB L RA G C BU U
D G AL A D H RD- AR Y WORK	H GROU ' OM CHA L RA GY
GROU CA AL MA AG M FRAM WORK
GROU F A C AL O O A D CA H FLOW
RFORMA C OF O AL A A A D R	OR O O RA O OF BA CO O A RFC
H G VALU ( V RO M AL, OC AL A D GOV R A C )
GR Y A D RA AR CY
O L D V LO M
D V R Y A D CLU O
CR A G VALU FOR H COU RY
GR RA O
CU OM R X R C
OVA O
U A ABL F A C

7.1 PERFORMANCE OF POSTE ITALIANE SHARES

he value of the oste taliane share in 2023 recorded an increase of 11 30%, going from €9 232 at the beginning of the year to €10 275 at the end of December 2023 From the date of listing on the stock exchange (27 October 2015) to 31 December

2023, oste's share price increased by 52 2% (while the F M B index increased by 34 1% in the same period), guaranteeing an overall return for

TSR performance vs median FTSE MIB 2021/2023 +29%

shareholders ( R17F ¹¹⁸) of 144% while the main talian stock exchange index recorded an increase of 81%

¹¹⁸ otal hareholder Return

he table below shows the main information on the stock and on the Company's dividend policy as well as the relative performance recorded during the year compared to previous years

Share KPIs	FY 2023	FY 2022	FY 2021	FY 2020
Closing price at the end of the period (€)	10 275	9 126	11 540	8 320
Minimum price of the period (€)	9 012	7 658	8 076	6 144
	17/03/2023	29/09/2022 29/01/2021 12/03/2020
Maximum price of the period (€)	10 41	11 940	12 675	11 510
	28/07/2023	03/02/2022	26/10/2021	19/02/2020
Average price of the period (€)	9 826	9 373	10 996	8 364
tock exchange capitalisation at the end of the period (€m)	13,362	11,920	15,072	10,867
R of the period (%)	20 52	(15 42)	44 83	(13 03)
arnings per share (€)	1 48	1 21	1 21	0 93
Dividend per share (€)	0 80	0 650	0 590	0 486
Dividend Yield (%)*	7 8	7 1	5 1	5 8

ource: Bloomberg

*Calculated as the ratio of Dividend er hare (D ) to the share price at the end of the period

On 6 ovember 2023, oste taliane's Board of Directors, in light of the financial position and results of operations of oste taliane pA at 30 June 2023, the performance for the following months, the business outlook and the related expected

Poste Italiane Group Report on Operations at 31 December 2023 economic prospects at 31 December 2023, and in line with the Group's dividend policy, resolved to bring forward, as an

interim dividend, part of the ordinary dividend for 2023 o this end, the Company has prepared a Report and Financial tatements pursuant to article 2433-bis of the talian Civil Code, which show that the Company's financial position, results of operations and cash flows allow such distribution he opinion of the independent auditors was obtained on these documents he interim dividend of €0 237 per share, gross of any legal withholding taxes, was paid with effect from 22 ovember 2023, with "ex-dividend date" of coupon no 13 coinciding with 20 ovember 2023 and record date (i e the date on which the dividend was entitled to be paid) 21 ovember 2023

Based on the number of shares outstanding at 6 ovember 2023, which amounted to 1,295,434,202, the total amount of the interim dividend was €307 million

7.2 IMPACTS FROM ONGOING CONFLICTS

he year 2023 was characterised by the continuation of the conflict between Russia and Ukraine

Following the recommendations issued by MA and CO OB during 202218F ¹¹⁹ and in line with previous accounting closures, the following is an update to 31 December 2023 of the main effects of the crisis in Ukraine on the Group; for a complete recognition, please refer to the information given in chapter 3 Material events during the year, in the section " oste taliane's financial statements"

With reference to the impact of the ongoing conflict on business, it should be noted that the Group's sphere of operations is mainly domestic and it has limited business relations with the countries involved in the conflict; therefore, the Group has not experienced significant impacts on its business or significant repercussions on profitability, nor fears about the impairment of its ability to continue as a going concern

he macro-economic context during 2023, in particular, was characterised by a combination of factors leading to a widespread slowdown in economic growth n particular, it is worth noting that inflationary dynamics, although decreasing, continued throughout the year, generating growth in the prices mainly of raw materials and transport costs, as well as the continued normalisation of monetary policy by the world's main central banks, which revised their reference interest rates upwards for most of the year, in order to stem the overheating of the economy

With specific reference to gas and electricity prices, these were significantly reduced in 2023 compared to 2022, as a result of a gradual rebalancing of the international gas market after the cut-off of Russian pipeline supplies to urope, as well as other factors such as the increase in production from renewable sources in urope and French nuclear production compared to 2022 he volatility of gas and electricity prices also decreased, although it was also fuelled by the new geopolitical tensions in the Middle ast quadrant, which in any case had a much more limited impact than the Russian-Ukrainian crisis n this gradually improving scenario, the Group successfully started selling electricity and gas to the retail market in 2023, keeping risks under control Moreover, in its gas procurement policies, in 2022, the Group selected suppliers with minimal exposure to gas imported from Russian territory, in order to minimise geopolitical risk, and expanded its panel of suppliers in 2023 to maximise diversification and competitiveness

Against this backdrop, the Group's performance during the period was solid and better than expected, with an operating result of €2 62 billion reaching a record level in the Group's history

he Group's financial solidity and liquidity also made it possible to finance investments of about €845 million in 2023, to pay shareholders €570 million as the balance of the 2022 dividend and €307 million as the interim dividend for 2023, and to accelerate the Group's growth through investments in strategic companies for business development, in execution of the shareholders' resolution of 8 May 2023, to finance buyback transactions totalling €34 million from its own funds (for the latter, see section 3 - Material events during the year - of the " oste taliane's financial statements" section)

¹¹⁹ ublic statement MA32-63-1277 " mplications of Russia's invasion of Ukraine on half-yearly financial reports" of 13 May 2022, ublic statement MA32-63-1320 " uropean common enforcement priorities for 2022 annual financial reports" of 28 October 2022 and CO OB Warning otice no 3/22 "Conflict in Ukraine - Attention Reminder for supervised issuers on financial reporting and compliance related to restrictive measures taken by the uropean Union against Russia" of 19 May 2022

Poste Italiane Group Report on Operations at 31 December 2023

Revenue €11.99 billion (+5.4% y/y)

EBIT €2.62 billion (+9.4% y/y)

Net Profit €1.93 billion (+22.1% y/y)

Lastly, it should be noted that the escalation of the sraeli- alestinian conflict from October 2023 onwards, even though it accentuated the volatility of the financial markets, did not affect the Group's business during the financial year 2023, as its operations were mainly domestic and exposures to countries involved in the conflict were marginal

7.3 GROUP OPERATING RESULTS

MA L, ARC L A D D R BU O RA G C BU U F A C AL RV C RA G C BU U URA C RV C RA G C BU U AYM A D MOB L RA G C BU U

he comparison scenario for 2022 was pro-forma according to the new accounting standard FR 17

he Group's performance in 2023 is solid and up on 2022 with a record B value (€2,620 million, +9 4% y/y) in the Group's history hese results confirm the effectiveness of the strategic guidelines defined by management and their execution, as well as the resilience demonstrated by the Group, which benefits from a diversified business structure and has continued to operate and grow in an uncertain economic scenario

On 20 March 2024, the Group's new 2024-2028 strategic plan was presented to the financial community, outlining future strategies across the various trategic Business Units ( BUs) n addition, with the new strategic plan, the BU ayments and Mobile was renamed to oste ay ervices

he evolutionary lines of the 4 trategic Business Units over the course of the new plan are summarised below n the following sections on the respective BUs, the corresponding objectives of the strategy and the main drivers and K s are explained

Business growth will also be supported by careful cost discipline (personnel expenses and costs of goods and services), which will lay the foundation for the target drivers and K s depicted below

n order to provide an interpretation of the new energy business, more consistent with the view used by management, as the Group is not an energy producer, a net revenue presentation was adopted in 2023 Consequently, some values shown in the following document (including the respective comparative values), reflect a management reclassification with respect to the accounting data: specifically, revenue is shown net of costs related to the purchase of raw materials, system charges and the transport of electricity and gas lease refer to the reclassified statement of profit or loss schedules in the 'Other nformation' section of this Report on Operations for the reconciliation of the management values with the accounting values

(€m)	2023	2022		Changes	4Q 2023	4Q 2022		Changes
Revenue*	11,989	11,374	+615	+5.4%	3,186	3,060	+126	+4.1%
Total costs*	9,369	8,978	+390	+4.3%	2,671	2,738	(67)	-2.5%
EBIT	2,620	2,396	+225	+9.4%	515	322	+193	+59.9%
EBIT margin %	21.9%	21.1%			16.2%	10.5%
NET PROFIT	1,933	1,583		+350 +22.1%	411	144		+267 +185.4%
Net earnings per share	1.48	1.21	0.27	+22.2%	0.31	0.11		+0.21 +188.1%
CAPEX	845	810	+35	+4.3%	453	401	+51	+12.8%
% of revenue	7.0%	7.1%			14.2%	13.1%

*The items include the management reclassification of the costs of the energy business.

X R AL R V U (€m)

Group revenue19F ¹²⁰ amounted to €11 99 billion, marking a growth of €615 million compared to 2022 (+5 4%) with the positive contribution of the trategic Business Units ayments and Mobile (+€312 million equal to +27 5 %), Financial ervices (+€290 million equal to +5 9%) and Mail, arcels and Distribution (+€95 million equal to +2 6%) he nsurance ervices trategic Business Unit recorded revenue down by €83 million (-5%) compared to 2022 he inorganic revenue growth in 2023, i e without considering the incremental contribution of the newly acquired Group companies120F ¹²¹, amounted to a total of €245 million (+2 2% compared to 2022)

he fourth quarter of 2023 shows revenue growth of €126 million (+4 1%) compared to 2022 attributable to the positive performances of the trategic Business Units Financial ervices (+€178 million; +14 9%) and ayments and Mobile (+€42 million; +11 6%), only partially mitigated by the performance of the trategic Business Units nsurance ervices (-€82 million equal to -16 1%) and Mail, arcels and Distribution (-€12 million equal to -1 2%)

O AL F A C AL A

(€bn)

he value of the total financial assets of the insurance segment, as of the financial year 2023, takes into account the " nsurance rovisions" indicator121F122 of the Life segment (in accordance with the local processing principles of the financial statements of oste Vita pA); the stock of total financial assets at 31 December 2022 has also been readjusted according to this new measure

¹²⁰ he Group's accounting revenue amounted to €12,128 million in 2023 (€3,251 million in the fourth quarter of 2023) and €11,386 million in 2022 (€3,071 million in 2022)

¹²¹ M&A 2022: lurima (April), L ( eptember), Agile and ourcesense (October); M&A 2023: et nsurance (April)

¹²² hey represent the obligations undertaken vis-à-vis policyholders as well as the tariff premiums net of loadings echnical rovisions are calculated, in accordance with the application rules set out in Annex 14 of VA Regulation no 22 of 4 April 2008, analytically, contract by contract with reference to the portfolio issued by the Company and in force at the valuation date (Mathematical rovisions) his item also includes Outstanding claims provisions and Miscellaneous echnical rovisions (provisions for future expenses, supplementary insurance premium provisions, profit-sharing provisions and reversals)

Poste Italiane Group Report on Operations at 31 December 2023

* Values do not include the protection line of the Life business.

** Includes the value of current accounts and assets under administration. Current accounts do not include REPO and oste taliane's liquidity *** Includes capitalisation of interest

****Includes net inflows on: Postal Savings, Investment Funds, Moneyfarm, Insurance, Current Accounts and Assets under Administration.

***** Includes net inflows on: Investment Funds, Moneyfarm, Postal Savings Bonds, Insurance and Assets under Administration.

During 2023, total financial assets, which amounted to €581 billion, increased by 0 9% (+€4 9 billion) compared to the

€576 billion at 31 December 2022, due to the positive performance effect mainly on ostal avings (+€4 9 billion) and on nsurance rovisions (+€3 billion), partially offset by negative net inflows on ostal avings and current accounts here were also positive net inflows in insurance (€3 4 billion) and mutual funds (€2 4 billion)

Total Financial Assets €581 billion

O AL CO

(€m)

Following the entry into force of the new FR 17 standard, the costs incurred by the Group and directly attributable to insurance policies, from the time of their placement and until their settlement, are considered within insurance liabilities and released periodically in the statement of profit or loss (among insurance net revenue) For the purpose of understanding the trends presented below, the total value of costs incurred by the Group was highlighted, also considering those attributable to insurance contracts

Poste Italiane Group Report on Operations at 31 December 2023

n accordance with the accounting standard FR 17, total costs12F ¹²³ stood at €9,369 million, an increase compared to the €8,978 million of 2022 (+€390 million), mainly due to the increase in the items: personnel expenses (+€347 million), costs of goods and services (+€282 million) and depreciation and amortisation (+€42 million) he expansion of the Group's corporate scope in 2022 and 2023 explains a significant part of the increase in total costs: +€42 million in personnel expenses, +€159 million in costs of goods and services, and +€20 million in depreciation and amortisation (totalling €221 million)

ersonnel expenses amounted to €5,170 million, an increase of €347 million compared to 2022 ee the following section for more details

Costs of goods and services recorded an increase of €282 million, going from 2,815 in 2022 to 3,098 in 2023 et of the effects of the application of the new standard, costs of goods and services recorded an increase of €307 million, going from €2,948 million in 2022 to €3,255 million in 2023 n addition to the incurring of costs to support the business, the change is mainly related to the expansion of the company scope (for €159 million) for the companies acquired during 2022 and 2023, and the inflation scenario (for €55 million)

Depreciation, amortisation and impairments costs increased by €42 million (+5 4%) from €769 million in 2022 to €811 million in 2023, due to the expansion of the company perimeter as well as higher depreciation on rights of use (mainly for the expansion of the arent Company's leased fleet) and on property, plant and equipment

Further information is provided in the otes to oste taliane Financial tatements for the year ended 31 December 2023

R O L X

Annual Report 2023

(€m)

otal personnel expenses recorded an increase of €347 million (+7 2%) compared to 2022, of which +€242 million on the cost of overtime and +€105 million on the cost of ordinary labour Analysing the development of personnel expenses compared to 2022, without taking into account the effects from the application of FR 17, the overall increase amounted to €417 million (+8 0% compared to 2022) Ordinary personnel expenses, net of the effect generated by the application of the FR 17 accounting standard, recorded an increase of €176 million (+3 4%) going from €5,157 million in 2022 to €5,332 million in 2023 his change is linked to the increase in unit cost (+€186 million), the effect of the corporate transactions (around 700 average F s) carried out during 2022 and 2023 (+€42 million), partially offset by the reduction of the workforce (approximately -1,200 average F ) Contributing to the increase in the unit cost were the increase in the

¹²³ Accounting operating costs, before costs of the nergy business netted against revenue (raw materials and system charges), amounted to €9,508 million in 2023 and €8,991 million in 2022

contractual minimums triggered in July 2022 and July 2023 in connection with the ational Collective Labour Agreement renewed in June 2021 and the increase in the variable component driven by the share linked to commercial incentive he change in the cost of overtime compared to 2022 is equal to +€242 million and is mainly attributable to the provision to the redundancy fund to support the commitment of 3,900 incentivised exits by 2025 (communication to the rade Unions of 22 December 2023) and to the additional and extraordinary performance bonus (approximately €133 million) paid in ovember 2023 and recognised in order to appreciate the commitment of employees and mitigate the effects on real wages produced by the inflation phenomenon (Agreement on the erformance Bonus for the year 2023 signed with the trade unions on 1 August 2023)

UMB R OF R OURC

(average Full ime quivalent in thousands)

he number of resources leaving the Group in 2023, including incentive redundancies, is 7 3 thousand (average F ) on a permanent basis and 1 thousand (average F ) on a fixed-term basis, against new hires of 7 thousand (average F ) he expansion of the Group scope which took place in 2022 with the entry of lurima, Agile, L and ourcesense and in 2023 of et nsurance (+0 7 thousand average F ) also contributed to the change in the workforce for the period

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

CO OF GOOD A D RV C A D D R C A O A D AMOR A O

(€m)

he following table shows the development of costs of goods and services and depreciation and amortisation compared to 2022, showing the effects of the application of FR 17 et of the effects of the application of the new standard, costs of goods and services increased by €307 million from €2,948 in 2022 to €3,255 in 2023 n addition to the incurring of costs to support the business, the change is mainly related to the expansion of the company scope (for €159 million) for the companies acquired during 2022 and 2023, and the international inflation scenario (for €55 million) Depreciation and amortisation, net of the application of FR 17, amounted to €880 million and increased by €50 million compared to 2022 due to the expansion of the company scope (+€20 million) as well as higher amortisation on rights of use, mainly for the expansion of the arent Company's leased fleet, and on property, plant and equipment

(€m)

Poste Italiane Group Report on Operations at 31 December 2023

he consolidated operating profit (EBIT) stood at a record level for the Group at €2,620 million and recorded growth of €225 million (+9 4%) compared to the last financial year (€2,396 million) t should be noted that in the year 2023, the Mail, arcels and Distribution BU reached a substantially balanced budget one year ahead of schedule

Below is a representation of the contribution of the individual BUs to the operating result for the period

B BY RA G C BU U (€m)

n 2023, the Group's operating profit amounted to €2,620 million, showing an increase of €225 million compared to the previous year he growth in operational performance affected the Strategic Business Units Mail, Parcels and Distribution which recorded an operating result of -€43 million in 2023, up by €283 million compared to last year, and

million)

Payments and Mobile, which recorded an operating result of €440 million, up by €60 million compared to 2022 (€379

he operating results of the Financial Services and Insurance Services Strategic Business Units were positive at €863 million and €1,360 million respectively, a decrease of €25 million and €94 million compared to the value realised in 2022 (€887 million and €1,455 million)

For more detailed information on the performance of the individual trategic Business Units, please refer to the dedicated paragraphs later in the chapter

F A C AL MA AG M A D AX (€m)

he profit for the period stood at €1,933 million, an increase of 22 1% compared to 2022 (€1,583 million), and takes into account financial management, which went from €37 million in 2022 to €107 million in 2023

his change (+€70 million) is mainly attributable to: (i) the release, following the July 2023 ruling of the Court of Cassation, of part (€25 million) of the provision for doubtful debts from others relating to the interest income accrued on the R receivable (for the non-deduction for RA purposes of personnel expenses); (ii) the adjustment of €21 million, following the impairment test carried out in 2022, on the value of the investment in Anima Holding (at 31 December 2023, the need to adjust the carrying amount of the investment had not arisen) For further details, please refer, respectively, to as reported in the chapter " roceedings pending and principal relations with the Authorities" and to the paragraph "Use of stimates" of the section " oste taliane's financial statements"

7.3.1 MAIL, PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT

	Industrial Plan Strategy 2024-2028
MAIL, PARCELS AND DISTRIBUTION Leading logistics player with the aim of consolidating its presence in the parcels and express courier sector and growing in integrated logistics	● Evolution of the logistics network B2X market leadership ●
		● Growing in integrated logistics
Targets and KPIs Business Plan	Actual 2023	Plan Target
Automation and streamlining of the logistics network
● Parcels delivered by postmen and women	90 mln/pcs	240 mln/pcs in 2028
Green address
Pick-up and delivery points for a sustainable offer
● Parcels collected and delivered at PUDO network*	44 mln/pcs	>80 mln/pcs in 2028
● Punto Poste network population coverage**	95%	>98% in 2028
Reduction of consumables in logistics centres
● Reduction of disposable materials*** in sorting centres	-	-40% disposable materials in 2028 vs. 2023
* Pick Up Drop Off (PUDO): includes the Punto Poste network, Post Offices with poste restante and Lockers. % of the population within 5 minutes (or 2.5 km) of a PUDO * This means all materials that can wear out and break (e.g. wooden decks), which will need to be replaced with reusable materials (specifically with recycled plastic decks). Business Development
Parcels
● Revenue share related to parcels and logistics****	40%
● Key customer revenues**	2x vs. 2019	43% in 2024, ~60% in 2028 3x in 2028 vs. 2019
International
● International Revenues	210 €mln	390 €mln in 2028
Integrated Logistics
● Revenues from Integrated Logistics*	0.1 €bn	0 3 €bn in 2028
* Calculated on mail and parcel revenues, excluding other revenues. Key customers: Amazon, Zalando, China business, Vinted and Ebay. **** Revenues in 2023 do not include those from the order with the Civil Protection (Ministry of the Interior).

he trategic Business Unit shows, one year ahead of the lan's forecasts, the historic milestone of an operational breakeven his result benefited from both the growth in external revenue, thanks in part to the contribution of the €109 million capital gain related to the sennder transaction, and the growth in revenue from the placement of products/services of the other segments on the distribution network he operating profit absorbed the increase in costs generated by inflationary pressures (€55 million) and the extraordinary performance bonus paid to employees in ovember (€133 million)

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

MAIL, PARCELS AND DISTRIBUTION
(€m)	2023	2022	Changes
External revenue	3,746	3,651	+95	+2.6%
Revenue from other sectors	5,244	4,862	+383	+7.9%
Total revenue	8,991	8,512	+478	+5.6%
Costs	8,987	8,799	+188	+2.1%
Costs vs other sectors	46	39	+8	+19.8%
Total costs	9,033	8,838	+195	+2.2%
EBIT	(43)	(326)	+283	+86.9%
NET RESULT	(46)	(361)	+315	+87.3%
Operative KPIs	2023	2022	Changes
Mail and parcels
Revenue/FTE (€k)	76	72	+5	+6.4%
Parcels that can be delivered as standard mail (volumes in m)	90	71	+19	+26.9%
New Punto Poste Network (number of lockers and alternative collection points)	15,724	15,117	+607	+4.0%
Incidence of parcels delivered using alternative channels1 (%)	7.7	6.0	+1.7	+28.8%
Distribution
Number of customers (m)	35.1	35.1	(0.0)	-0.1%
Number of Post Offices	12,755	12,755	-	n/s
Rooms dedicated to consultancy	7,907	7,853	+54	+0.7%
Postamat ATM network	8,135	8,118	+17	+0.2%
ESG
Green fleet (electric vehicles)	5,822	3,653	+2,169	+59.4%
Electric charging points installed	5,637	4,012	+1,625	+40.5%
Smart mailboxes	707	418	+289	+69.1%
No. buildings involved in the Smart Building project2	1,996	1,617	+379	+23.4%
Photovoltaic Panels (no. of buildings)	308	163	+145	+89.0%

n/s: not significant.

¹Third-party networks. Calculated as parcel volumes delivered on the Punto Poste network ( Lockers, tobacconists and other collect points) on total B2C

2 Automated and remote management of buildings to achieve energy efficiencies

X R AL R V U

(€m)

he external revenue of the trategic Business Unit went from €3,651 million in the year 2022 to €3,746 million in the same period of 2023 (+€95 million, equal to +2 6%) his increase is mainly attributable to the performance of other revenue and income¹²⁴ (+€91 million, equal to +47 9%), due to the recognition, in the second quarter of 2023, of a core operating income

¹²⁴ "Other revenue" includes revenue of the subsidiaries Consorzio osteMotori (management of Ministry of nfrastructures and ransport paperwork, which ended on 31 March 2022), atentiVia oste (licence delivery service), uropa Gestioni mmobiliari (management of oste taliane's real estate assets), oste Air Cargo (commercial air transport), oste Welfare ervizi (management of upplementary

of approximately €109 million and linked to the renegotiation of the Joint Venture agreements with sennder For further details, please refer to as previously reported in the paragraph "Corporate structure of the Group and principal corporate actions during the period"

he revenue of the traditional mail sector, after a first quarter characterised by the full recovery of post-pandemic activities and a slight slowdown in the second quarter, recorded a recovery in the third quarter, due to a better mix of volumes and an adjustment in the last quarter, leading the sector's revenue at €2,070 million in 2023 (+€4 million, equal to +0 2% compared to 2022) arcel revenue in the period were in line with the results achieved in the twelve months of 2022

eutralising the positive contribution of lurima (+€15 million), the lower revenue linked to logistics services provided during the Covid-19 pandemic emergency phase (-€43 million), as well as the lower contribution of sennder (-€11 million) related to the Group's exit from the scope of consolidation from the end of June 2023 and other one-off components, the revenue trend of the parcel and logistics sector in 2023 would increase by approximately €50 million, +4% compared to 2022, reflecting the growth trend in sector volumes

Health Funds), ourcesense and Agile ower (companies operating in the sector) he item also includes revenue from the sale of philatelic products (e g , folders, postcards, albums), from the activity of issuing digital identities to citizens ( D - ublic Digital dentity ystem), from the services of the platform dedicated to the booking of vaccines, revenue from the sale of tax credits, and finally other revenue not strictly related to oste taliane's core business (e g , property rentals)

Unrecorded Mail: standard mail service with mailbox delivery

Recorded Mail: delivery to the person with proof of delivery and tracking for retail and business customers his category includes in particular: registered mail, insured mail and judicial acts

Direct Marketing: service for the sending by companies and ublic Administration entities of communications with advertising, promotional or informative content

Integrated Services: integrated and customised offers for specific customer segments, in particular ublic Administration, large companies and professional firms he most relevant integrated service is the ntegrated otification ervice, for the management of the entire process of notification of administrative and judicial acts (e g violations of the Highway Code)

Other: services for publishers, multi-channel services, printing, document management, other basic services his item also includes tariff subsidies relating to external revenue earned on products and services discounted in accordance with the law and the Universal ostal ervice Compensation (also includes compensation relating to ordinary parcels)

he results of Mail services recorded by the Group during 2023 show a decline in volumes equal to 6 2% (-152 million items), with revenue in line (+0 2% equal to +€4 million) compared to the previous year his trend is attributable to a different product mix compared to 2022, which saw a growth in the volumes of some higher value products present in the families of ntegrated ervices and Described Mail (Judicial Act and Registered Mail), compared to the decline in the volumes of products with lower unit value

Recorded Mail recorded a 3 6% increase in volumes (+6 million items), against a 4 2% increase in revenue (+€31 million) his growth was concentrated in the first quarter, particularly on the product Judicial Act, and then stabilised in the other quarters with registered mail, thanks to the increased volume of shipments from some large customers

Unrecorded Mail showed a reduction in both volumes and revenue of 6 9% (-79 million items) and 2 4% (-€14 million) respectively compared to 2022, attributable to a physiological drop in shipments that continued in the fourth quarter of the year substantially in line with the drop recorded in the second and third quarters of 2023 (-17 million items in the fourth quarter of 2023 compared to the same period of 2022, or -6 7%)

ntegrated ervices recorded an increase in the year compared to the previous year in terms of volumes (+1 million shipments, equal to +3 1%) and a trend in line with revenue (approximately +€1 million, equal to +0 2%), thanks to the positive result recorded in the first nine months of 2023, which compensated for the slight drop in the last quarter (-2 million shipments compared to the fourth quarter of 2022, in which there were exceptional shipments from the ublic Administration)

Direct Marketing continues to record a decrease in volumes of 16 7% (-43 million items), resulting in a negative change in revenue of approximately €6 million (-8 1%), attributable to the phenomenon of e-substitution

he item Other, which also includes services marketed by ostel, showed in 2023 a 4 5% drop in volumes (-37 million items) compared to 2022, accompanied by a 1 6% decrease in revenue (-€8 million) his development is mainly attributable to ublishing, which in the second quarter of 2022 was characterised by increased mailings from non-profit associations in favour of refugees from the war in Ukraine

he item Other also includes the fee for the Universal ervice xpense of €262 million in 2023, in line with 2022, and the tariff subsidies on the publishing service, which recorded a growth of 1 4% (+€1 million) compared to the previous year, as a result of the AGCom Resolution 454/22/CO which defined, with effect from 1 eptember 2022, a process of progressive increase of the universal tariffs for editorial services

Generally speaking, since the second half of 2022, Mail has recorded a tariff and revenue recovery linked partly to the tariff manoeuvre on universal service products, and partly to tariff adjustments related to inflationary pressures, on expiring business customer contracts

PARCELS

n the year 2023, the parcel business recorded a volume growth of 6 8% (+16 million shipments), while revenue was in line with the previous year

-commerce continues to be the strategic business segment, thanks to steadily increasing performance, with an even more visible effect on volumes in the second half of 2023 n 2023, the C2X segment posted revenue growth of 4 5% (+€2 million) and volumes substantially in line with 2022 (+€0 1 million, or +1 1%), also thanks to some repricing effects

he last quarter of 2023 shows an acceleration in volume growth (+8 million shipments compared to the fourth quarter of 2022) equal to the growth recorded during the first nine months of the year n particular, major customers show a significant increase in average daily volumes entrusted compared to the previous year Revenue performance in the fourth quarter of 2023 (-€1 million, -0 3% compared to the same quarter of 2022) was in contrast to volume growth, mainly due to the combined effect of the following factors: lower revenue related to logistics services provided during the Covid-19 pandemic emergency phase (-€8 million), lower revenue from the deconsolidation of sennder (-€6 million) and other one-off components; neutralising these factors, the revenue trend in the parcels and logistics segment in the fourth quarter of 2023 would be up by approximately €23 million, +6 2% compared to the fourth quarter of 2022

Costs of the Mail, arcels and Distribution BU including depreciation, amortisation and impairments for 2023 amount to €9,033 million, an increase of €195 million (equal to +2 2%) compared to 2022 his trend is attributable to the increase in personnel expenses, which stood at €5,494 million, up by €380 million (+7 4%) compared to the previous year, mainly attributable to the increase in the per capita cost related to the contractual adjustments that took effect starting from July 2022 and July 2023, to the extraordinary performance bonus that was awarded to employees in ovember 2023 and to the provision to the redundancy fund to support the commitment of approximately 3,900 incentivised exits by 2025 Costs of goods and services showed an increase of €103 million (+4 3%), reaching €2,473 million in 2023 his trend is attributable to the joint effect of the increase in variable costs related to business growth and the increase in costs generated by inflationary pressures on fuel and raw materials Depreciation, amortisation and impairments increased by €38 million (+4 8% compared to 2022) against an increase in investments Finally, the decrease in other expenses only partially offsets the increase in the cost items described above, and is attributable to lower provisions for risks and charges on tax credits, as better described in the notes to the Consolidated financial statements

QUAL Y OF H U V R AL O AL RV C

he quality results achieved for the Universal ervice, whose objectives are defined by AGCom, are shown below he regulator verifies compliance with the objectives and publishes the results annually

he quality trend for the financial year 2023 shows good performance overall, with almost all products exceeding their targets for the year Compared to the previous year, the trend showed a general improvement t should be noted that during 2023, there was an increase in the volumes handled in Registered Mail compared to the forecast

Poste Italiane Group Report on Operations at 31 December 2023

Posta 1 Priority
Target Delivered within: 80.0% 1 day	Target Delivered within: 80.0% 2 days	Target Delivered within: 80.0% 3 days	Delivered within: 4 days	Target 98.0%
2023 80.9% result	D 2023 result 90.5%	2023 result 98.1%	2023 result	98.9%
2022 79.9% result	1 2022 result 89.8%	2022 result 97.8%	2022 result	98.8%
Posta 4 Ordinary	Bulk mail	Registered mail	Insured mail	Standard delivery mail
Delivered within:	Target	Target	Target	Target
Target	Delivered within:	Delivered within:	Delivered within:	Delivered within:
4 days	90.0%	90.0%	90.0%	90.0%
90.0%	4 days	4 days	4 days	4 days
2023	2023	2023	2023	2023
n.a.	96.9%	90.4%	99.4%	94.9%
result	result	result	result	result
2022	2022	2022	2022	2022
73.5%	95.8%	88.1%	99.2%	93.4%
result	result	result	result	result
Target	Delivered within:	Delivered within:	Delivered within:
Delivered within:	Target	Target	Target
98.0%	6 days	6 days	6 days
6 days	98.0%	98.0%	98.0%
2023	2023	2023	2023
n.a.	99.3%	95.5%	99.7%
result	result	result	result
2022	2022	2022	2022
89.2%	98.6%	93.5%	99.8%
result	result	result	result

7.3.2 FINANCIAL SERVICES STRATEGIC BUSINESS UNIT

FINANCIAL SERVICES More transparent, capillary, best offer pricing and customer-oriented manager of Italian people's assets Targets and KPIs Business Plan	· New service model to optimise specialist customer coverage, maximising customer value · Proactive investment portfolio management providing flexibility in different rate scenarios Actual 2012	l arget Plan
Evolution of the service model: Newcustomer segmentation with specialised financial advisors to improve commercial effectiveness · "Hub and Spoke" model ofthe Post Office network to optimise its coordination	Specialist coverage on Affluent+ customers 32%	Specialist coverage on Affuent+ customers >80% in 2028
Savings and Investments · Customer portfolio management with a range of products to suit every need · Renewal of the postal savings product range and user experience · Integration of investment and protection into the advisory model	TFA 581 €bn	TFA 624 Ebn in 2028
Loans · O ptimising the multi-partner model to maximise commercial efficiency · E volution of the product offering Micro-small business · Renewed commercial focus by leveraging the retail	Intermediated disbursement of personal loans and assignment of one-fifth of €3.3bn per year Current account stock	Intermediated disbursement of personal loans and assignment of one-fifth of 4.3 €bn in 2028 Current account stock
platform · Comprehensive product offering and omnichannel approach Investment Portfolio Management	278,000	400,000 in 2028
· Stabilised portfolio contribution with proactive management able to adapt to different market scenarios "Income from the investment portfolio includes net interest income and net resalised capital gains from proactive portfolio management	Revenues from the investment portfolio * 2.4 €bn	Revenues from the investment portfolio * 2.5 €bn in 2028

he results of the Financial ervices trategic Business Unit in 2023 show revenue growth supported mainly by the greater net interest income achieved and the positive contribution of the postal savings collection and management service he Banco osta otal Capital Ratio at 31 December 2023 stood at 22 1%

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

FINANCIAL SERVICES	2023	2022	Changes
(€m)
External revenue	5,229	4,939	+290	+5.9%
Revenue from other sectors	866	820	+46	+5.6%
Total revenue	6,095	5,759	+336	+5.8%
Costs	152	114	+37	+32.8%
Costs vs other sectors	5,081	4,757	+323	+6.8%
Total costs	5,232	4,872	+361	+7.4%
EBIT	863	887	(25)	-2.8%
EBIT margin %	14.2%	15.4%
NET PROFIT	647	622	+25	+4.0%
Operative KPIs	2023	2022	Changes
otal Financial Assets (€bn)	581	576	+5	+0.9%
et inflows (€m)	(4,087)	(550)	(3,537)	n/s
Performance Effect1 (€bn)	9.0	3.5	+5.5	n/s
Current accounts (average deposits for the period in €bn)	91.8	96.1	(4.4)	-4.5%
Net return on deposits2	2.44%	1.99%
ostal savings (average deposits in €bn)	312.2	315.5	(3.3)	-1.0%
Loans (disbursed in €m)	3,374	3,296	+78.2	+2.4%
n/s: not significant.

1 The performance effect mainly includes the impact of macroeconomic variables (spreads, rates, etc.) on the stocks of the insurance, managed funds and assets under administration segments, as well as the capitalisation of interest for the period on the stocks of postal savings bonds/loans.

2 Excluding returns from pro-active portfolio management.

X R AL R V U A D R V U FROM O H R C OR

Poste Italiane Group Report on Operations at 31 December 2023

Pro-active portfolio management: gains from the sale of securities in the Banco osta ortfolio, net of losses Net interest income: income from investment of liquidity revenue via postal current account deposits, net of interest expense

and other financial transaction costs ncluding profits from tax credits

Postal savings deposits: savings deposits through ostal nterest-bearing Certificates and ostal avings Books issued by Cassa Depositi e restiti

Asset management: collective asset management through mutual investment funds and management of individual portfolios relating to institutional mandates attributable to the Group

Distribution of third-party loans and products: distribution of products disbursed/issued by third-party partners (financing, mortgages, loans, salary-backed loans, credit cards, etc )

Collection and payment services: slips, collections and payments AA , transfer of funds and ancillary services for current accounts

xternal revenue in 2023 amounted to €5,229 million and record a growth of €290 million compared to the €4,939 million achieved in 2022 (+5 9%)

n detail, the period under review shows: (i) net interest income up compared to 2022 (+€334 million, +17 5%), essentially due to the higher yield relating to the Retail and Corporate segments (+€372 million) and the yield from the use of current account deposits in the ublic Administration segment (+€52 million) partially offset by the lower net interest relating to the reasury segment (-€71 million) (ii) net capital gains realised as part of pro-active portfolio management amounting to €158 million, down €177 million (-52 9%) compared to €335 million in 2022; (iii) revenue from the ostal avings collection and management service amounting to €1,740 million, up 8 7% (+€140 million) compared to last year and benefiting from the renegotiation of the Agreement with Cassa Depositi e restiti for 2023 signed in January 2024, in a context of rapidly rising interest rates during 2023; iv) revenue from collection and payment services, which amounted to €764 million and are substantially in line with the previous year (+€1 million or +0 1%); v) revenue from the distribution of loans and other thirdparty products, which amounted to €180 million, down €33 million (-15 4%) compared to €213 million in 2022, mainly attributable to lower revenue from personal loans, which, despite growing volumes, were affected by lower up-front fees paid by financial partners; vi) revenue from Asset Management, which amounted to €144 million, up €25 million (+21 2%) compared to the previous year, mainly due to increased volumes of mutual funds placed

revenue from other sectors stood at €866 million (+€46 million compared to 2022, equal to +5 6%) he positive change is mainly attributable to the increase in commissions for the placement and management of insurance policies

he fourth quarter of 2023 showed an increase in external revenue of €178 million (+14 9%) compared to the same period of 2022, mainly due to higher revenue from the collection and management of ostal avings (+€138 million, or +34 5%), higher net interest income (+€40 million, or +7 7%) and higher revenue from the distribution of loans and other third-party products (+€20 million, or +72 8%) hese positive changes offset the negative balance of net capital gains realised as part of pro-active portfolio management (-€10 million in the fourth quarter of 2023 compared to nil in the same quarter of 2022) and lower revenue from collection and payment services (-€18 million, or -8 8%) Revenue from other sectors stood at €205 million, down by €13 million compared to the fourth quarter of 2022 (-5 9%)

AV RAG CURR ACCOU D O

(€bn)

* Includes short-term REPO and collateral. ** Includes corporate current accounts and PostePay Business, oste taliane's liquidity and payables of other customers.

n 2023, the average current account deposit decreased compared to the previous year, going from €96 1 billion to €91 8 billion his decrease, amounting to €4 4 billion, was mainly attributable to the contraction of the ublic Administration deposit (-€4 3 billion, -30%) and the reasury component (-1 5 billion, -16 5%) A positive result, despite the challenging environment, for the Retail component (including the balance of ostepay prepaid cards), which grew by €1 6 billion or +3% compared to 2022

V M OR FOL O COM O O (AV RAG D O €bn)

* Includes REPO and short-term bonds and collateral. ** Includes tax credits and cash on the buffer.

*** Calculated as net interest on average stock.

he average deposit of the investment portfolio consists primarily of talian government securities and debt securities issued by Cassa Depositi e restiti and guaranteed by the talian tate (about €65 billion), in which funding from private customers on postal current accounts is invested, and deposits with the M F (€10 billion) represented by funding from postal current accounts belonging to public customers

he investment portfolio also includes the average balance used by Banco osta to purchase tax credits, which amounted to approximately €8 billion at 31 December 2023

During 2023, financial markets were characterised by the continuation of the rapid and significant increase in monetary policy rates by the CB and other major central banks in order to counter the high level of inflation that began in the second half of 2020, which was attributable to both the recovery of economic activity following the Covid-19 pandemic and Russia's invasion of Ukraine in February 2022

(figures in bps)

n this context, the management of Banco osta securities portfolio was characterised by strategies aimed at reducing the risk of refixing124F ¹²⁵ asset swap-covered securities over the next few years, in the expectation of a future reduction in market rates, by increasing the portion of the portfolio of fixed-rate securities, through: (i) new investments in this category, (ii) the early extinguishment of hedging swaps with positive mark-to-market (market value) at a time when swap rates were deemed to be at their maximum levels125F ¹²⁶; (iii) sale of positions in asset swaps (sale of the security and extinguishment of the related hedging derivative), the countervalue of which was reinvested in fixed-rate securities increasing its yield 472

n addition, during the course of the year, taking advantage of increasing yields, the following were entered into: (i) purchase contracts for the renewal of portfolio maturities (ii) transactions to hedge the return on the deposits with the M F of inflows from the ublic Administration

Finally, in the final months of the year, in order to improve the income profile of the portfolio for the two-year period 2024- 2025, was the sale of securities maturing in 2025 and with a yield tending to be low in favour of securities maturing in 2028 with a higher yield, for a nominal value of approximately €365 million his switch resulted in capital losses of about €10 million for the financial year 2023, which will be more than offset by higher future interest payments

¹²⁵ Adjustment of the interest rate of the financial instrument to market rates

¹²⁶ he mark-to-market of the derivative sold is recognised as a direct reduction of the amortised cost of the fixed-income security,

(€m)

O AL AV G FLOW

At 31 December 2023, net inflows from postal savings amounted to approximately -€7 2 billion, approximately €3 9 billion better than in 2022 avings books, with growth of approximately €9 1 billion compared to the 2022 figure, benefited from the initiatives dedicated to the provision of new liquidity carried out since the beginning of 2023 t should be noted that the comparison with the previous year is not homogeneous: in fact, eleven pension accruals were credited during 2022, as a result of the provisions related to the health emergency, compared to twelve in 2023126F ¹²⁷, resulting in lower net inflows n relation to postal interest-bearing certificates, the change compared to the 2022 figure is negative by around €5 2 billion: the increased subscriptions (+€3 2 billion equal to +7 5% compared to the 2022 figure) were not sufficient to counterbalance the growth in repayments (+€8 5 billion), mainly influenced by the high amount of maturities for the year (+43% compared to the 2022 figure) and by the continuation of the growing trend in early repayments that began in the second mid-2022 in light of the changed economic and financial conditions

¹²⁷ he January 2022 pension accrual was credited at the end of December 2021, while the March 2022 pension accrual, credited at the end of February, was the last instalment paid in advance

O AL AV G AV RAG D O *

(€m)

* Interest is calculated at the beginning of the year in respect of interest accrued in the previous year. Average value of the deposit excludes both the capitalisation of interest for the period and interest accrued, but not yet due, on Interest-bearing Postal Certificates that have not expired at the reporting date. Savings Books Interest-bearing Postal Certificates

he postal savings average deposit decreased by about €3 3 billion compared to the figure for 2022 he value of Books is influenced by the particularly negative result of the net collection recorded in 2022, which affected the initial balance of 2023, while the substantially constant figure of the Average Deposit of ostal nterest-bearing Certificates (BF ) is mainly attributable to the capitalisation of interest, which has almost offset the effect of the negative et nflows

O AL CO

(€m)

he total costs of the trategic Business Unit amounted to €5,232 million and recorded a growth of €361 million (+7 4%) compared to the €4,872 million achieved in 2022, mainly due to the greater fees relating to the Operating Guidelines in relation to the activities entrusted to oste taliane

he operating profit ( B ) of the sector stood at €863 million, a decrease of 2 8% compared to last year (-€25 million)

With a positive financial management of €30 million and taking into account the taxes for the period (€246 million), the net result of the Financial ervices trategic Business Unit in 2023 stood at €647 million, an increase of €25 million compared to €622 million in 2022 (+4%)

F A C AL K

€mln	2022	2023
CET1 CAPITAL	2,618	2,654
TOTAL CAPITAL	2,968	3,104
TOTAL ASSETS	104,438	98,145
RWA - Risk Weighted Assets	12,867	14,077

At 31 December 2023, the Leverage Ratio stood at 3 2%, up from 31 December 2022, mainly as a result of the decrease in the ratio denominator, i e capital assets including adjustments for the purposes of calculating the ratio, by €5 7 billion; this decrease is mainly attributable to the reduction in deposits with the M F (against inflows made with the ublic Administration) and the reduction in deposits with the Bank of taly (against the improvement in market rates compared to the rates recognised on deposits with Central Banks)

Regarding the numerator of the ratio (total capital), there was an increase in own funds of €0 1 billion compared to 31 December 2022; in particular, on 30 June 2023, the arent Company further increased the Banco osta capital endowment, through the granting of a perpetual subordinated loan with a 5-year non-call period, for €100 million, under terms and conditions that allow the calculation as additional tier 1 capital he value of own funds at 31 December 2023 also includes the computation of €60 million from the profit for the year 2023 (i e about 90% of the profits available to the arent Company), as these are subject to the resolution of the oste taliane's Board of Directors concerning the proposed allocation of the profit for the year 2023 and in compliance with the provisions of Article 26 of Regulation ( U) mo 575/2013

he C 1 Ratio at 31 December 2023 stood at 18 9%, while the otal Capital Ratio including Additional ier 1 was 22 1%, confirming Banco osta's capital solidity he slight decrease in both indicators is related to the increase in Risk Weighted Assets (mainly counterparty and operational risk)

For detailed information on the different risk areas and on the methodologies used to measure and prevent the risks themselves, please refer to the Risk Management section in the " oste taliane financial statements" section

TOTAL CAPITAL RATIO

7.3.3 INSURANCE SERVICES STRATEGIC BUSINESS UNIT

		Industrial Plan Strategy 2024-2028
INSURANCE SERVICES Market-leading insurance group with comprehensive Life and Protection product range.	business party channels products ratios and less volatility than in the past	▪ Resilient and Sustainable Life Investment and Pension ▪ Rapid and profitable growth in the Protection business ▪ Expansion of the distribution network through third ▪ Full integration of ESG principles in investment ▪ Positive organic capital generation, strong capital
Targets and KPIs Business Plan	Actual 2023	Plan Target
Life Investment and Pension Fund Constantly positive net flows, even in challenging market conditions, supported by a loyal customer base ●Average statutory technical reserves net of protection reserves ●% of Poste Vita products with ESG elements ●Normalised growth* of CSM	157 €bn 79% +5% vs 2022	>180 €bn in 2028 100% by 2024 ~5% per year
*Growth adjusted for exogenous components (i.e. financial market trends and policyholder behaviour)
Protection Sector
Strong industry growth driven by rising demand and low market penetration. Improving profitability and expanding the distribution network through third-party channels
●Gross premiums Protection**	0 8 €bn	~2x in 2028 vs 2023 (≥ 1 5 €bn)
●Combined Ratio Protection (%)	84%	≤85%

he BU financial results for the year were down year-on-year, and should be read in light of the challenging context for the sector and the fact that 2022 enjoyed positive effects related to interest rate dynamics We highlight the solid performance in the Life business with net premium inflows of €3 4 billion in 2023, in line with expectations and bucking the trend in the sector, with the lapse rate remaining well below market levels et nsurance's contribution to the protection business was positive he olvency Ratio at 31 December 2023 stood at 307%, confirming the solvency of the insurance Group

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

INSURANCE SERVICES	2023	2022	Changes
(in €mln)
External revenue	1,567	1,650	(83)	-5.0%
Revenue from other sectors	(148)	(148)	(0)	-0.1%
Total revenue	1,419	1,502	(83)	-5.5%
Costs	31	19	+12	+62.0%
Costs vs other sectors	28	29	(0)	-1.5%
Total costs	59	48	+11	+23.9%
EBIT	1,360	1,455	(94)	-6.5%
NET PROFIT	994	1,051	(57)	-5.5%
Operative KPIs		31 December 2023 31 December 2022	Changes
Net technical provisions Poste Vita Group (in €bn)1	161.1	154.0	+7.1	+4.6%
Contractual Service Margin (CSM)2 (in €bn)	13.7	12.9	+0.8	+6.5%

Solvency Ratio	307%	253%
Life business	2023	2022		Changes
Gross premium - Life (€m)3	17,996	17,179	+816	+4.8%
of which: Classes I-IV-V	14,059	9,584	+4,476	+46.7%
of which: Multi-class 4	3,926	7,579	(3,653)	-48.2%
et inflows (€m)	3.4	7.5	(4.1)	-54.4%
Redemption rate	4.4%	3.5%
Poste Vita products with ESG elements5	79%	70%	+0.09	+9.00%
P&C business	2023	2022		Changes
Gross premium - &C (€m)6	581	392	+189	+48.2%
Average daily premiums - Modular offer (€k)7	245	269	(24)	-8.9%

Combined protection ratio (net reinsurance)⁸ 84.2% 84.2%

1 Technical reserves of the insurance business (life and P&C) determined in accordance with the national accounting standards used to prepare the separate financial statements of the Group's insurance companies

2 Represents the present value of the expected and not yet realised profit that the Group will recognise on an accrual basis in profit and loss over the life of the contract. ³Includes life written premiums, gross of reinsurance and intercompany portions of the Poste Italiane Group.

4 Includes gross premiums from Class I and Class III of Multi-class products.

⁵All products with sustainability content consistent with the "Guidelines for defining the sustainability characteristics of products" approved by the C O of oste Vita in October 2023.

6 Includes non-life gross premiums written, gross of change in premium reserves, reinsurance ceded and intercompany portions of the Poste Italiane Group.

⁷Calculated on annualised net premiums, including Property and Personal policies sold in the Poste Italiane network.

8 Corresponds to the ratio of total costs incurred (claims and settlement expenses + net reinsurance expenses + attributable/non-attributable operating expenses + other technical expenses and income) to gross insurance revenues.

X R AL R V U

(€m)

he components of the revenue items for both life and &C business are specified below

<-- PDF CHUNK SEPARATOR -->

Life revenue: release of the Contractual ervice Margin (C M) , claims and expected benefits resulting from the release of expected cash flows, release of the Risk Adjustment , recovery of contract acquisition costs, claims occurring in the reporting period and other directly attributable expenses, losses from groups of onerous insurance contracts and amortisation of expenses for the acquisition of insurance contracts issued, change in Liability for ncurred Claims (L C) , and relating to contracts valued with the Building Block Approach (BBA) and remium Allocation Approach ( AA) , maintenance and collection commissions and other acquisition expenses entirely charged in full to profit or loss, investment management expenses to which the Variable Fee Approach (VFA) method is applied, net finance income/expenses relating to investments and financial costs/revenue relating to insurance contracts issued (with reference to contracts valued with the VFA method, account is taken of the so-called "mirror effect") and outward reinsurance and the balance of costs and revenue from outward reinsurance

P&C revenue: release of Contractual ervice Margin (C M), expected claims and benefits arising from the release of expected cash flows, release of Risk Adjustment, recovery of contract acquisition costs, claims incurred in the reporting period and other directly attributable expenses, losses on groups of onerous insurance contracts and amortisation of acquisition costs of insurance contracts issued, change in Liability for ncurred Claims (L C), commissions and other acquisition costs charged in full to profit or loss, net investment-related finance income/expenses and financial costs/revenue related to insurance contracts issued and outward reinsurance, the balance of costs and revenue from outward reinsurance and with respect to contracts valued using only the AA method, the issue of premiums

lease refer to the glossary in Chapter 10 for more details on the FR 17 quantities in the above definitions

xternal revenue went from €1,650 million in 2022 to €1,567 million in 2023 (-€83 million, equal to -5%) and are essentially attributable to the Life business, which contributed €1,475 million, while the contribution from the &C business amounted to a total of €92 million

n particular, Life net revenue decreased by 6 7% (-€106 million) compared to 2022, mainly due to the lower C M release in the year compared to 2022 (-€246 million) primarily attributable to the additional release component127F ¹²⁸ he reduction in the additional release in 2023 is linked to the evolution of the macroeconomic scenario (it should be noted that 2022 was marked by a scenario characterised by a sudden and high increase in the rate curve); this effect is only partially offset by: i) the positive contribution of net income from financial management (+€79 million), which during the year benefited from the improvement in financial dynamics compared to the previous year; ii) the positive balance between expected claims and expenses compared to claims and expenses that occurred during the year (+€41 million), iii) the increase in the risk adjustment release (+€26 million)

he returns achieved in 2023 by the eparately Managed Accounts are 2 76% for the osta ensione account and 2 52% for the ostaValore iù account

et &C revenue amounted to €92 million, up €24 million (+34 7%) compared to 2022 mainly due to the higher C M release (+€16 million) and the higher risk adjustment release (+€6 million) recorded in the year compared to 2022 and related to the contribution of et nsurance acquired in 2023 he Combined Ratio rotection, net of reinsurance, stood at a value of 84 2% in line with the 2022 value

Considering the net revenue from other sectors, which stood at €148 million in 2023 and in line with the 2022 figure, the overall net revenue of the trategic Business Unit in 2023 amounted to €1,419 million, down by €83 million (-5 5%) compared to 2022 he fourth quarter of 2023 showed a decrease in net external revenue of €82 million (-16 1%) compared to the same period in 2022 Life business showed a decrease of €103 million (-20 8%) compared to the fourth quarter of 2022, mainly due to the lower C M release in the period (-€142 million) primarily as a result of the additional release component his decrease was only partially offset by the growth in net income from financial management, which increased by €12 million during the period due to improved financial market dynamics

¹²⁸ he additional release is a release component of the C M, which is calculated for the VFA model only, and which includes: - the financial profit generated by the extra return for the period according to a Real World scenario (real scenario) compared to that calculated according to a Risk eutral scenario (risk-free rate scenario);

^- release of the financial risk of the period ( ime Value of Options and Guarantees, VOG)

(€m)

n the &C segment, there was revenue growth (+€21 million) compared to the fourth quarter of 2022, due both to the increase (+€18 million) in net revenue from contracts measured under the AA method, which mainly benefited from the strong growth in inflows, and to the higher C M release, the latter relating almost entirely to et nsurance

he Contractual ervice Margin (C M) shows a balance at the end of the financial year 2023 of €13,743 million, an increase compared to the figure at the end of 2022 of €841 million During 2023, C M recorded: i) a positive change of €1,493 million related to new business mainly due to oste Vita inflows for the year (highlighting the contribution arising from the et nsurance group acquired during 2023 of approximately €141 million); ii) an increase arising from the expected return of €489 million related to the interest accrued and capitalised on the C M at 31 December 2023 (€428 million) and the adjustment of the C M based on the difference between the real word return and the expected risk neutral return (€61 million); (iii) the positive result of financial changes of €253 million mainly related to an increase in the fair value of the investments of the separately managed accounts due to a reduction in the market rate curve compared to last year hese positive changes are partially offset by the negative impact of technical changes in the amount of €109 million due to the trend in lapses during the year (lapses occurred compared to expected lapses) and the release of C M in the period totalling €1,285 million (of which €1,169 million determined on the basis of the coverage unit, and €116 million relating to the additional release component) Deducting exogenous components (financial market trends and policyholder behaviour) from the C M trend, the normalised growth in the year was €697 million compared to the value at 31 December 2022 (+5%)

GRO R M UM

(€m)

Despite a challenging market context, in 2023, the gross premiums of the Life business amounted to €18 billion, showing an increase of 4 8% (+€0 8 billion) compared to the 17 2 billion of the previous year; the insurance Group's commercial offer was able to adapt promptly to the changing needs of customers here was an increase in inflows on traditional build-up products, which recorded a growth of €4 5 billion in the period his trend is only partially offset by the decrease in inflows relating to multi-class products , which recorded a decrease of €3 7 billion in the year

Gross premiums in &C business at the end of 2023 amounted to €581 million, up €189 million (+48 2%) from 2022 (€392 million) driven: i) by the "Welfare" segment, whose premiums rose from €152 million recorded in 2022 to €218 million in 2023 (+€65 million), supported mainly by the new group policies underwritten with corporate clients ( mployee Benefits); ii) by premiums on "third-party networks" (i e premiums on the property and personal protection products of the company et nsurance distributed through the banking network), which recorded an increase of €46 million during the year entirely attributable to the contribution, from April 2023, of et nsurance; iii) by premiums relating to the "Credit rotection" line (+€38 million) due to the growth recorded on both salary-backed loans and C policies (entirely attributable to the contribution of et nsurance); iv) by the "asset, personal and modular protection" line, which recorded an increase of €33 million; v) by (€m)

premiums on intercompany policies amounting to €23 million in 2023 (of which €20 million related to the integrated life/ &C offering) and recording an increase of €6 million compared to 2022

n the fourth quarter of 2023, gross premiums from the life business amounted to €3 5 billion, down €0 4 billion (-9 6%) from the fourth quarter of 2022, mainly due to the decrease in premiums from Multi-class products (-€0 4 billion) compared to the comparison period

During the fourth quarter of 2023, gross premiums from &C business amounted to €126 million, up €35 million (+38 6%) compared to the same quarter of 2022 (€91 million) driven: i) by premiums on "third-party networks", which recorded a growth of €15 million compared to the same period of 2022, entirely attributable to the contribution of et nsurance; ii) by premiums related to the "credit protection" line (+€9 million compared to the fourth quarter of 2022) due to the growth recorded on salarybacked loans (entirely attributable to the contribution of et nsurance); iii) by the "Welfare" segment, whose premiums rose from €34 million recognised in the fourth quarter of 2022 to €40 million recognised in the fourth quarter of 2023 (+€6 million), mainly supported by the new group policies taken out with corporate clients ( mployee Benefits); iv) by the "asset, personal and modular protection" line, whose premiums went from €45 million in the fourth quarter of 2022 to €50 million in the fourth quarter of 2023 (+€5 million)

L F FLOW A 31 D C MB R 2023

Life net inflows stood at €3 4 billion (€7 5 billion recorded at the end of 2022), decreasing mainly due to the performance of liquidations (mainly maturities and lapses), and remained positive mainly thanks to the contribution of the eparately Managed Accounts128F ¹²⁹, a result that confirms the resilience of the business, in a market characterised by significant negative net flows

he lapse rate stood at 4 4% at 31 December 2023, up compared to 3 5% in 2022 and at levels significantly lower than the average market figure of 10 63% at 31 December 2023129F 130

¹²⁹ he separately managed accounts identify an investment portfolio, specifically created by the insurance company, in which the premiums of customers who subscribe to a life insurance policy (Class products) are invested and revalued on the basis of the account results

¹³⁰ ource: Ania rends - Life Flows and rovisions - ublication no 4, February 2024

URA C ROV O 130F 131

(€m)

Life business technical provisions amounted to €159 9 billion and increased by €6 4 billion compared to 31 December 2022, mainly due to the positive net inflows recorded during the period (+€3 4 billion) and, secondly, to interest earned by policyholders (+€3 billion) echnical provisions pertaining to the rotection segment amounted to €1,182 million at the end of 2023 (of which €486 million related to the Life business), partly thanks to the contribution of et nsurance and et nsurance Life (€519 million), up from the €535 million recorded at 31 December 2022

CHA G L F URA C ROV O 13 F 132

(€m)

¹³¹ echnical provisions of the insurance business (Life and &C) determined in accordance with the national accounting standards used to prepare the individual financial statements of the Group's insurance companies

¹³² Determined in accordance with the national accounting standards used to prepare the individual financial statements of the insurance company oste Vita pA

L AB L U D R URA C CO RAC

(€m)

Liabilities under insurance contracts at 31 December 2023 totalled €155,338 million, of which €154,098 million consisted of Liability for Remaining Coverage (LRC) , which includes the Contractual ervice Margin (C M) of €13,743 million, and €1,240 million from the Liability for ncurred Claim (L C) he 9 9% increase during the period (+€13,958 million) is mainly attributable to the increase (+€13,750 million) in the LRC resent Value of future cash flow, thanks to the contribution of net inflows, which continue to be positive

BR AKDOW OF H V M OR FOL O

(€bn)

high-yield bonds, corporate bonds, non-Italian government bonds, Italian government bonds

During 2023, in line with the latest asset allocation of the Group's insurance companies, the portfolio diversification process continued, aimed at continually improving the insurance company's risk profile, through a gradual increase in allocation in favour of government bonds and an improvement in the average quality profile of corporate portfolios linked to issuers with higher creditworthiness

O AL CO

(€m)

he costs discussed in the remainder of this paragraph are only those not directly attributable to insurance contracts n light of the entry into force of the new FR 17 standard, costs directly attributable to insurance policies are in fact shown as a direct reduction of insurance revenue hese costs, moreover, at the time the contract is concluded are considered within insurance liabilities and released periodically in the statement of profit or loss (within net insurance income) on-attributable costs at 31 December 2023 (mainly related to personnel expenses, commercial expenses, service costs, and consulting/professional services) amounted to €59 million and increased by €11 million compared to 31 December 2022, due to the increase in costs of goods and services and other costs and expenses

n light of the results illustrated, the economic performance of the nsurance ervices trategic Business Unit shows B of €1,360 million in 2023, down by 6 5% (-€94 million) compared to 2022 (€1,455 million)

aking into account the positive financial management of €50 million, up by 21 4% (+€9 million), and the taxes for the year 2023, equal to €417 million (down by €28 million, -6 3%), the nsurance ervices trategic Business Unit achieved a net result of €994 million at 31 December 2023, a decrease of 5 5% (-€57 million) compared to 2022

OLV CY RA O RFORMA C

he olvency Ratioof the oste Vita Group stood at 307% at 31 December 2023132F ¹³³, increasing compared to the 253% recorded in December 2022 (+54 p p ), remaining at levels well above regulatory constraints and managerial aspiration (above 200%)

he change in the period was due to an increase in available equity (+26 p p on the solvency ratio) and a decrease in the capital requirement (+28 p p on the solvency ratio)

n particular, the development of the B - wap spread (-30 bps) and the decrease in interest rates (-71 bps) lead to an increase in Own Funds reflected in the increase in the value of investments not offset by an equal increase in technical provisions

he decrease in the Capital Requirement is mainly due to the reduction in underwriting risks (especially the "lapse risk") and market risks due to the favourable market scenario hese changes are partly offset by the increase in operational risks (due to higher inflows for the year) and counterparty risks (due to higher liquidity held by the Company)

Despite the current context of economic uncertainty, no significant early policy cancellation behaviour by customers is currently observed t should be noted that the mass lapse risk hedging treaty, referring to Class and Multi-class products, signed by the Company on 14 March 2023 (effective from 31 December 2022) is still in force

¹³³ he value of the olvency Ratio is currently undergoing the review process and will be communicated to VA by 20 May 2024

7.3.4 PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT

Industrial Plan Strategy 2024-2028

POSTEPAY SERVICES

Postepay payments ecosystem and everyday needs at the heart of customer value creation and full development of the Open Payment Ecosystem

• Consolidation of leadership in digital payments and evolution towards an Instant Open Payment Ecosystem, also for connecting retail and micro-small business customer ecosystems
• Focus on growth in the Fibre segment and retention of Mobile business

• Growth of the energy offering within the Postepay

ecosystem

Targets and KPIs Business Plan	Actual 2023	Target Plan
Electronic money
Consolidation of payment leadership through the structural growth of the digital payments market, the
development of the Instant Open Payment Ecosystem with the enhancement of the Postepay Wallet
● Total debit and prepaid value of card transactions	80 3 €bn	>130 €bn 2028
● E-commerce value of transactions	24 3 €bn	42 €bn 2028
● Number of debit and prepaid card transactions*	2.7 bn	4.6 bn 2028
● Number of e-commerce transactions	0.6 bn	1.1 bn 2028
● Digital e-wallets stock	12.0 mln	16.0 mln 2028
*Number of transactions includes all payment transactions, top-ups, withdrawals and transfers with the exception of incoming transfers.
Telecommunications
Mobile business consolidation. Fibre business growth supported by ultrabroadband connectivity market growth, a loyal customer base and an omnichannel platform
● Stock of fixed and mobile lines	4.7 mln	5.5 mln 2028
Energy
Growth supported by a simple, transparent, reliable and fully integrated offer in the Postepay ecosystem and with the values of the Poste Italiane Group
● Final customer base Energy and Gas	0.35 mln	2.5 mln 2028

he BU performance at the end of 2023 proves to be solid and growing in all divisions compared to 2022; B stood at €440 million (+16% compared to 2022) driven mainly by revenue from the collections and payments and electronic money segments, due to the growth of e-commerce and the acquisition of L Holding pA, which more than offset the start-up costs of the energy business

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

PAYMENTS AND MOBILE (€m)	2023	2022		Changes
External revenue*	1,447	1,134	+312	+27.5%
Revenue from other sectors*	264	264	+0	+0.1%
Total revenue*	1,710	1,398	+313	+22.4%
Costs*	753	537	+216	+40.3%
Costs vs other sectors*	518	482	+36	+7.5%
Total costs*	1,271	1,019	+252	+24.8%
EBIT	440	379	+60	+15.9%
EBIT margin %	25.7%	27.1%
NET PROFIT	338	270	+68	+25.1%

* This item takes into account the management reclassification of costs related to the purchase of raw materials and the transportation of electricity and gas, which are classified as a direct reduction of revenues in the energy segment. Please refer to section 8.2 Other Information for a reconciliation with the respective accounting data.

Operative KPIs	2023	2022		Changes
E-money and payments
otal value of card transactions ("on us" and "off us") (€m)1	80,275	71,390	+8,885	+12.4%
otal value of card transactions ("off us") (€m)2	64,304	57,377	+6,927	+12.1%
Number of cards (m)3	29.6	28.9	+0.7	+2.5%
of which Environmentally Friendly Cards (m)	10.6	5.2	+5.4	+103.9%
of which Postepay Prepaid cards (m)	22.1	21.4	+0.8	+3.5%
of which Postepay Evolution cards (m)4	10.0	9.5	+0.5	+5.4%
of which Postepay Connect (k)	604.2	539.7	+64.5	+11.9%
Number of card transactions (m)	2,680	2,340	+341	+14.6%
of which number of e-commerce transactions (m)5	607	512	+95	+18.6%
Incidence of Postepay top-ups on new channels* (%)	77%	78%
TLC
SIM PosteMobile landlines and mobile telephones (stock in thousands)	4,732	4,815	(83)	-1.7%
of which mobile Sim (stock in thousands)	4,326	4,459	(133)	-3.0%
of which Sim Casa (stock in thousands)	406	356	+50	+14.0%
of which Sim Fibra (stock in thousands)	143	99	+44	+44.2%
Energy
Contracts signed (in thousands)6	530	47	+483	n/s

n/s: not significant.

* Includes transactions carried out on third-party networks (Post Office Point Network, Tobacconists, HORECA and other LIS points) and digital channels (Poste Italiane Retail, Business and Other Digital Channel Properties).

1 ransactions relating to payments made with ostepay Debit and ostepay on internal and external payment circuits ("on us" and "off us")

2 ransactions relating to payments made with ostepay Debit and ostepay on external payment circuits ("off us")

3 Includes PostePay cards and debit cards.

4 Including business customers and Postepay Connect.

5 ncludes e-commerce transactions + web (on oste taliane's digital properties) Incoming transfers are excluded from the perimeter.

6 The value refers to the period from the beginning of the service (June 2022) to December 2023.

X R AL R V U

(€m)

Electronic money: prepaid cards (top-ups, payments, withdrawals, fees, issuance), debit cards ( ostepay debit – interchange

fee on card transactions; from October 2021 also withdrawals, 2 top-ups and fees to customers); acquiring services (transaction fee, fees and services) linked to the supply of O (mobile, physical, virtual) for accepting card payments (debit, credit, prepaid) hone top-ups for all mobile network operators (M Os) and mobile virtual network operators (MV Os), commercial services for tobacconists/HOR CAs

Collections and payments: tax payment service through acceptance of the F23 and F24 models; funds transfer for sending money abroad via Moneygram and Western Union, post giro transfers and direct debit made by ostepay volution, payments on the ago A system, MAV, payment collection, revenue stamps, acceptance of postal pay slips and other direct L payments TLC: mobile phones (revenue from traffic and fee) and fixed line ( osteMobile Casa and osteCasa Ultraveloce offers) Energy: revenue from electricity and gas sales following the start of the employee and family promotion in mid-June 2022 (mass

market offer starting from January 2023) and revenue from energy management portfolio optimisation activities

xternal revenue13F ¹³⁴ stood at €1,447 million and mark a growth of €312 million compared to the previous year (+27 5%)

As mentioned above (see ection "Group operating results"), starting in 2023, the energy business has been represented on a net revenue basis, i e the revenue shown below is shown net of costs associated with the purchase of raw materials, system charges and the transport of electricity and gas

he growth of €312 million is supported by the acquisition of L Holding pA and L ay pA, which brought in incremental revenue of €184 million for the year134F ¹³⁵ (distributed between the lectric money business, €65 million, and the Collections and ayments business, €119 million), while the new energy business with €17 million in revenue benefited from the launch of the mass market offer in January 2023

Revenue from Collections and ayments services grew by €147 million (+63 2% compared to 2022) due to both the inorganic growth of L (+€119 million) and the growth in revenue from oste ay ago A payment alerts (+€18 million, +24% compared to 2022) and instant bank transfers135F ¹³⁶ from ostepay volution (+€9 million, +72% compared to 2022)

Revenue of the lectronic money business increased by €135 million (+23 2%) from €582 million in 2022 to €717 million in 2023, due to the aforementioned acquisition of L (and the associated €65 million increase in revenue) and growth in the operations of both ostepay volution and ostepay debit cards, as well as higher fee income; there were also higher revenue from acquiring services compared with 2022, due to the increase in volumes transacted and the contribution of L

he elecommunications segment showed revenue of €331 million (+€12 million or +3 8%) compared to €319 million in 2022 he increase in external revenue is mainly attributable to higher revenue from the fibre optic connectivity service

n the year 2023, the nergy segment recorded €17 million in net revenue (of which €157 million in revenue and €140 million in costs for raw materials, sorting charges and transport costs), mainly due to the Light offer n addition to the energy offer reserved for employees and their relatives launched in June 2022, the mass market offer was launched in January 2023, with the advertising campaign starting on 12 February 2023; in 2023, 488 thousand subscriptions were recorded (of which 336 thousand for the light offer and about 151 thousand for gas)

Revenue from other sectors amounted to €264 million in 2023 and were substantially in line with the previous year

he performance in the last quarter of 2023 confirms the sustained growth in the Collections and ayments and lectronic money segments pecifically, lectronic money revenue for the quarter amounted to €198 million (+€20 million, +11 3% compared to the fourth quarter of 2022) driven by growth in e-commerce (approximately €197 million e-commerce

¹³⁴ he BU accounting external revenue amounted to €1,586 million in 2023 (€464 million in the fourth quarter of 2023), compared to €1,147 million in 2022 (€368 million in the fourth quarter of 2022) he BU total accounting revenue amounted to €1,861 million in 2023 (€542 million in the fourth quarter of 2023), compared to €1,410 million in 2022 (€430 million in the fourth quarter of 2022)

¹³⁵ ncremental revenue of L recorded in January/August 2023 he month of eptember 2023 and the last quarter of 2023 are included in the organic growth, i e with the same company perimeter compared to the comparison periods (L entry into the Group starting from eptember 2022)

¹³⁶ ransfers settled within seconds of the transaction being ordered, via the pan- uropean ( arget nstant ayment ettlement) platform dedicated to real-time settlement of instant payments ource: www bancaditalia it

Annual Report 2023

transactions in the quarter, +16 1% compared to the same quarter in 2022) from high payment card operations, structural growth in cashless payments, and the acquiring service Collections and ayments services recorded revenue of €107 million in the last quarter of 2023 (+8 2% compared to the fourth quarter of 2022) mainly due to the positive contribution of the ago A payments service to the ublic Administration and the revenue by nstant Bank ransfers ositive performances also for the elecommunications segment, which achieved revenue of €84 million in the last quarter of the year (+€1 million, +1 8% compared to the fourth quarter of 2022) supported by the growth of the customer base of the fibre optic connectivity service n the last quarter of the year, the energy segment generated revenue of €10 million, net of costs related to the purchase of raw materials and transport costs

CARD OCK

(m)

At 31 December 2023, the overall stock of prepaid cards and debit cards amounted to 29 6 million, up compared to 31 December 2022 (+0 7 million, +2 5%) with overall transactions136F ¹³⁷ in 2023 equal to €80 3 billion, up by approximately €8 9 billion (+12 4%) compared to 2022

he existing ostepay prepaid cards amount to 22 1 million (+3 5% compared to December 2022) and of these, the

ostepay volution cards, reached a stock of 10 million at the end of 2023 (+5 4% compared to the value at 31 December 2022) he sale of ostepay Connect137F ¹³⁸ continued in 2023, with approximately 90 thousand activations at December 2023 and a stock of 604 thousand cards (+11 9% compared to December 2022) here was strong growth in the stock of eco-friendly cards,

which reached 10 6 million cards at 31 December 2023, up by 5 4 million or 104% from 5 2 million at the end of December 2022

During 2023, there was an increase in payment card transactions of 14 6% (+341 million transactions) compared to 2022, also thanks to the contribution of e-commerce transactions138F ¹³⁹ and on the web +18 1% (+108 million transactions)

¹³⁷ he figures refer to on-us and off-us payment transactions

¹³⁸ Offer integrating the ostepay volution prepaid card and the ostemobile M

¹³⁹ ncludes e-commerce transactions + web (on oste taliane's digital properties)

n the area of acquiring, against a number of O installed in 2023 of about 287 thousand, a transacted volume of €30 billion was developed (+12% of transacted volume compared to 2022, an increase of €3 billion)

M OCK

(figures in thousands)

n elecommunications, the customer base related to mobile telephony services, in December 2023, is represented by approximately 4 3 million lines, down (-3 0%) compared to 31 December 2022 With reference to Fixed elephony services, the " osteMobile Casa" offer and the " osteCasa Ultraveloce" fibre optic data connectivity offer recorded a 14% increase in lines, rising from 356 thousand lines at 31 December 2022 to 406 thousand lines at the end of 2023 n detail, the lines of the " osteMobile Casa" offer increased by 2 4%, while the lines of the " osteCasa Ultraveloce" (Fibre) offer reached 143 thousand units in 2023, an increase of 44 thousand lines compared to December 2022

he total costs of the trategic Business Unit amounted to €1,271 million, an increase of 24 8% (+€252 million) compared to the €1,019 million incurred in 2022

he increase in the cost of goods and services (+€173 million, +38 1% compared to the previous year) was mainly due to the expansion of the operating perimeter generated by the acquisition of L (+€132 million), start-up costs in the nergy segment following the launch of the commercial offer during the period (+€16 million), and the increase in the costs of payment circuits due to increased operations

he increase in costs towards other sectors (+€36 million, +7 5% compared to 2022) is mainly determined by the higher outsourcing costs to the arent Company, with particular reference to back office and call centre activities and systems information on payment services and placement of contracts at post offices linked to the start-up of activities in the energy business

ersonnel expenses increased by €19 million (+53 7%) compared to 2022, due to the expansion of the workforce following the acquisition of L and the new nergy business

n light of the described results, the economic performance of the ayments and Mobile trategic Business Unit at the end of 2023 shows an operating profit ( B ) of €440 million, up 15 9% compared to the previous year (+€60 million) with a contribution on the last quarter of the year of €122 million (+€13 million compared to the fourth quarter of 2022)

he profit achieved in 2023 amounted to €338 million, an increase of 25 1% compared to the value of 2022 (+€68 million)

7.4 DIGITAL AND THIRD-PARTY NETWORKS IN THE GROUP'S OMNICHANNEL STRATEGY

he Group acts as a driver of innovation and digitisation of the country, guaranteeing the accessibility and functionality of its offer and services to all citizens

he Group's omnichannel strategy is aimed at creating an "ecosystem" and multi-channel platform model which, thanks to cutting-edge physical and digital channels and simplified processes for serving its customers, aims to guarantee an excellent and homogeneous customer experience on all contact points

he main drivers of the Group's digital transformation, outlined in the new 2024-2028 business plan, are outlined below:

Annual Report 2023

D G AL RO R

he Group has implemented a programme of "digital transformation" of its service and offer models in order to guarantee its customers full digital contact experiences his programme was significantly accelerated in 2021, in view of the effects of the current health emergency, in order to make the Group's products available to customers in conditions of absolute safety

>6

Daily visitors on the Group's digital channels (+10% y/y) mln

Digital Market

With reference to the Digital market139F 140 , almost 52 million people in taly are on-line and almost 43 million are present and active on social channels 98 3% of talians continue to use a smartphone and 67 9% a desktop or laptop computer, while the growth of smartwatches (used by 35 3% of the population, up 6 3% compared to 2022) and smart homes (used by 23 8% of talians, up 16 1% compared to 2022) continues As far as e-commerce is concerned, 47 1% of people in taly made at least one online purchase in 2023

he main K s with the Group's performance on digital channels and third-party networks during 2023 are represented below

Key KPIs Omnichannel	2023	2022	Changes
Daily interactions physical network Poste and new channels (m)*	23.1	21.2	+1.9	+9.0%
Daily transactions Poste physical network and new channels (m)*	3.2	3.1	+0.1	+3.7%
KPIs New Channels*
Incidence of new channel interactions (digital, remote channels and third-party networks/total daily interactions)	69%	69%
Incidence of transactions on new channels (digital transactions and third-party networks/total transactions)	52%	50%
Digital KPIs
Incidence of digital interactions (e-commerce + digital retail channels)/total interactions	47.8%	46.7%
Daily digital transactions (m)	0.5	0.4	+0.1	+20.4%
Digital transactions/total transactions*	17.7%	15.2%
Daily users (website and apps) (m)	6.3	5.8	+0.6	+10.0%
Overall app rating	4.6	4.6	(0.0)	-0.5%
Digital clients (m)	13.4	12.0	+1.4	+11.7%
App downloads (m)	96.8	84.5	+12.3	+14.5%
Poste Italiane Digital e-Wallets (m)	12.0	10.7	+1.3	+11.9%
Active SPID digital identities (m)	24.0	23.8	+0.2	+0.8%
KPIs third-party networks
Payslip volumes (in mln)	40.7	50.8	(10.0)	-19.8%
Postepay top-ups (in mln)	52.8	51.8	+1.1	+2.1%
Postemobile top-ups (in mln)	9.4	11.1	(1.7)	-15.2%
Parcels delivered (in mln)	15.7	10.8	+4.8	+44.7%

* he indicators shown in the 2022 column have been pro-formed to include L 's operations in the first eight months of 2022 (the company was acquired in eptember 2022)

Interactions: daily contacts of customers with the group's omnichannel platform: visits to the oste taliane Group's website and apps, calls to the contact centre, customers served in ost Offices, transactions carried out at A Ms and third-party networks, transactions on physical O and e-commerce Transactions: customers' purchase actions (e g purchase of current account or postepay evolution) and transactions (e g

payment of pay slips, postepay top-up, bank transfer) on the oste taliane Group's digital properties, in post offices and at thirdparty networks

Average unique visitors: number of users who made at least one daily visit to the Group's digital properties ( oste it website and apps) in the selected period

¹⁴⁰ ource: https://wearesocial com/it/blog/2024/02/digital-2024-i-dati-italiani/

n 2023, the oste taliane Group reached 23 1 million daily interactions (21 2 million interactions in 2022) with 69% of interactions on digital properties, remote channels

and third-party networks he number of average daily unique

digital identities issued with about 75% market share

visitors also grew during the year, reaching 6 3 million, up 10% compared to last year Compared to last year, daily transactions on

digital channels also grew in double figures (+20%), accounting for about 18% of total daily transactions Digital customers

enabled for online operations through e- wallet reached 12 million at 31 December 2023, using the oste taliane Group's apps, which recorded over 96 million downloads with an overall rating in 2023 of 4 6 out of 5

he share of digital transactions on total transactions also increased compared to 2022 from 15 2% to 17 7% in 2023

oste taliane is confirmed as the first D Digital dentity Manager, with a market share of around 75% and a customer base of around 27 3 million dentities Digital public databases issued, of which 24 million active As further confirmation of its commitment to institutions and citizens, oste taliane renewed the D dentity Manager Agreement with Ag D in eptember

n order to guarantee the highest quality of service and to always propose new "digital citizenship" tools to users, giving value to the privileged partnership with nstitutions and supporting the evolution of the ublic Digital dentity ystem, oste taliane pursues continuous improvement of the customer experience in all its aspects and an ever-evolving offer through the development of new digital identity solutions

Strengthening of digital channels Strengthening of digital channels

Strengthening of digital channels n 2023, the Group continued the evolution of digital channels with a view to ensuring a seamless, omnichannel experience for its customers based on the following main drivers of evolution:

Introduction of new features on digital channels

• During 2023, the new Poste Italiane app (formerly the Ufficio Postale app) was made available, with a new design and a personalised user experience, thanks to the improvement of existing services and the introduction of new features, including particular:
  • o simplified booking flow, with the possibility of retrieving appointments made in omnichannel mode;
  • o introduction of a form pre-filling service directly in the app to simplify the experience in the Ufficio ostale app;
  • o new notice board, organised in a simpler way and navigable via the advanced search functionality;
  • o new section of the profile that allows customers to view and keep updated their personal and contact data and manage their oste D;
  • o a "featured" area with communications and notifications relating to the customer's operations, as well as a section dedicated to business proposals and one for quick access to the most frequently performed operations and with a summary of current activities, to support the customer in day-to-day operations;
  • o simplified access through the creation of a oste D, even for non-financial users, and enabling biometric recognition to standardise the way all customers access the app;
  • o new section dedicated to assisting customers in requesting information on the various products/services and for the resolution, also in self-service mode, of any problems encountered;
  • o available on the app the new oste Delivery Web and ostaonline funnels optimised for the purchase and dispatch of parcels, as well as the purchase and dispatch of registered mail, letters and telegrams online from smartphones;
  • o integration of the financial component, which enables customers to independently view and manage their Banco osta accounts and ostepay cards, expanding the range of products available in the app; it is therefore possible to access the details of their financial products and carry out the main payment transactions, in addition to those already available on the Banco osta and oste ay apps140F ¹⁴¹;

¹⁴¹ afely pay slips and car and motorbike tax stamps, make ago A payments, top-ups and transfers, send and receive money, withdraw without a card, view card s and block them, and pay bills

• o customisation of the app services (thanks to the use of Artificial ntelligence), based on the customer's usage with a data-driven logic to facilitate daily use; it is also possible to customise the home page, colour and sorting of services based on one's preferences
• n the area of Postal Savings, a recognition process was made available to customers on the Banco osta web and app channels to allow holders of Libretti mart, enabled only for information functions, to also access device functions by carrying out online transactions without the need to go to a post office or a ostamat A M
• On the basis of the main innovations introduced with the new oste taliane app, the evolution of the poste.it website has begun, with the simplification of its reserved areas through the introduction of fast-track operations and the use of new graphic elements, in order to facilitate the usability of information and enable customers to quickly access the main order operations
• he digital assistant (BOT) service was evolved in order to monitor the status of shipments
• As part of the activities to evolve the fibre offer, in March 2023, the possibility was made available for customers paying through the pay slip to be able to speed up the payment of invoices with the new feature of "one-click-to-pay" offering customers access to their payment tools to pay their slips via app and web and, at the same time, to switch to direct debits
• n the oste taliane, Banco osta and oste ay apps, thanks to the new oste ass functionality, the identification phase of customers in the ost Office (at the counter and in the consultancy room) has been simplified for the purposes of contracting a product/service present on the ingle Front nd platform14F ¹⁴², through the use of trong Customer Authentication ( CA)

Customers, whose identification document is already present in the oste taliane archives, by framing the QR Code on

the ADprovided at the counter and entering their oste D code, are identified without the need to present their documents n addition, customers in possession of F A142F ¹⁴³ (Firma Elettronica Avanzata, Advanced lectronic ignature) can also sign the contractual documentation for the purchase of a new financial product at the ost Office using the ostepay and Bancoposta apps

• he new cardless withdrawal service has been introduced in the oste taliane, Banco osta and oste ay apps, which allows ostepay Debit card holders to withdraw cash without using their physical card by going to one of the affiliated points of the U OL network
• For holders of a digital domicile143F ¹⁴⁴ a new service model has been implemented, as an alternative to service by post, which provides for the filing in the Platform for Digital Notifications14F ¹⁴⁵ of the deed and the sending of an information notice in telematic mode to the addressees

Strengthening the catalogue of offers on digital channels

• n the Electricity and Gas sector, the new functions have been made available145F ¹⁴⁶ in the self-service area (of the website and app), of the new transversal assistance model in the oste ay app and of the new sales funnel from the Banco osta app and the management of the recalculation of the annual (fixed) instalment is available146F ¹⁴⁷ and related communications to the customer via digital channels (web and app), on the bill, and by e-mail

¹⁴² he ingle Front nd (F U) is oste taliane's product sales platform that allows the sale of different products to be managed through a single system and render a more efficient service to customers

¹⁴³ he advanced electronic signature (F A) is the technological solution that allows customers to electronically sign the contractual forms required for the activation of services requested at ost Offices, in compliance with the regulations in force Customers will be able to affix their signature using an electronic pen connected to a tablet that is capable of detecting the graphic signature stroke and a series of additional graphometric characteristics (writing speed, pressure exerted, acceleration, inclination, etc ), guaranteeing the value of the documents signed in this way as private deed in accordance with current legislation, and ensuring the unique connection of the signature to the signatory, the authenticity and non-changeability of the document

¹⁴⁴ he digital domicile is the electronic address elected at a certified electronic mail ( C) service or a qualified certified electronic delivery service, as defined by the e DA Regulation, valid for the purposes of electronic communications having legal value

¹⁴⁵ Official Journal no 130 of 6 June 2022, Regulation governing the modalities of operation of the platform for the notification of ublic Administration deeds ( nd) Administrations, through one of their officials, will log in via D or C and will be able to upload the document to be notified on the platform, entering the addressee's tax code and digital domicile he platform operator will send the addressee a notice by C (certified e-mail) informing of the existence of the deed and providing the means of accessing and acquiring it

¹⁴⁶ he new functionalities relate to typical after-sales activities, such as: change of residence status, change of payment method, transfers, complaints, management of land registry data, activation/deactivation of bill by e-mail, change of delivery address, etc

¹⁴⁷ t is checked whether the initial estimate on which the fixed instalment paid by the customer in the current year was developed is still valid or, due to changed consumption habits of the customer or changes in prices, whether it should be modified for the following year

• n the utilities area, omnichannel functionalities of cross-selling between Energy and Fibre products were implemented on the Thank You Page147F ¹⁴⁸ n addition, the contact centre sale of Fibre products was extended to all customers (including prospect customers148F ¹⁴⁹, D customers and those with an incomplete or invalid identity document)
• he new simplified sales funnel for the Current Account was introduced in the Banco osta app, completing, in an omnichannel logic (i e the ability to switch from the app channel to the web and vice versa during the request process), the active channels for the sale of the product; on the web channel, the new simplified sales funnel dedicated to the purchase of Mutual nvestment Funds was introduced, for customers already in possession of a current account and smart passbook
• n the Postal Savings area, the new Supersmart Rinnova Offer is available, and can be activated from both the web channel and the Banco osta app, dedicated to Libretto mart holders with the upersmart remium Offer whose accruals are about to expire; in addition, the range of products that can be subscribed to on the digital channels, web and Banco osta app, has been expanded ( nterest-bearing ostal Certificate oluzione Futuro and upersmart ensione Offer for Libretto mart holders)
• Digital sales of the ostepay volution card have been made available, both from the oste ay app and from the poste it website, completing the active channels for selling the product and the range of cards that can be purchased online from an omnichannel perspective

Optimising PosteBusiness infrastructure

• he digital payment functions of business customers with the ostepay volution Business card and, where applicable, ostepay Debit Business have been expanded, integrating the payment of pay slips (both from the web and the app), Postepay top-ups (both from the web and the app), the F24 forms (from the web), telephone top-ups (from both the web and the app) and foreign bank transfers (from the web)
• he "My Business" service has been integrated, both on the web channel and on the osteBusiness app, for users of the BancoPosta Business Link current account, which allows you to have a simple and intuitive vision of your financial situation, monitoring income, expenses and cash flow, including forecasts, and the achievement of personalised income and/or expense objectives
• With regard to the e-commerce service dedicated to the Corporate target, the marketing of the new Virtual POS platform was launched on a panel of selected customers and the analysis and development of the innovative functionalities managed by the platform was started he new solution makes use of a new customer service model provided directly by oste taliane, guaranteeing greater customer control and monitoring

¹⁴⁸ he thank you page is the last screen in the sales process where the customer is greeted and thanked for signing up for the service ¹⁴⁹ rospect customers are users who do not have any product/service with oste taliane and are not registered at poste it, who come into contact with oste taliane through Call me Back or call centre calls but for whom no data is present on the systems

7.5 GROUP CAPITAL MANAGEMENT FRAMEWORK

he Group strategically manages the allocation of available capital among the four trategic Business Units in which it operates, consistent with the following objectives:

ensure business continuity through adequate capital allocation by all BUs to support the investment and liquidity needs of the businesses on the one hand, and compliance with regulatory requirements for BUs operating in regulated and supervised markets on the other;

maximise the medium- to long-term value creation of the Group by allocating capital according to its economic return;

guarantee a competitive return to shareholders by ensuring the dividend policy communicated to the market;

seize opportunities arising from acquisitions and/or strategic partnerships

OBJECTIVES	2023-2022 KPIs	FOCUS
upport the operational continuity of the business, ensuring industrial investments	• Investments of €845 million in 2023 (€810 million in 2022)
consistent with the objectives of the trategic lan Maintain capital requirement levels in line with the forecasts of the various authorities or consistent with management's aspiration	Banco osta: • CET1 ratio of 18.9% in 2023 (20 3% in 2022) • Total Capital Ratio of 22.1% in 2022 (23 1% in 2022) • Leverage ratio of 3.2% in 2023 (2 9% in 2022)
	oste Vita Group • Solvency Ratio of 307% in 2023 (253% in 2022)
	oste ay M : • Free Capital ratio: 55.4% in 2023 (33% in 2022) • Total Capital Ratio: 13.45% in 2023 (8 95% in 2022)
Maximise cash flow from Group operations	• FFO of the Mail, Parcels and Distribution SBU in 2023 amounting to €339 million (€259 million in 2022)
Maximise the Group's medium-/long-term value creation, directing strategic choices according to return on capital, towards continuous value growth over time	1. Group ROE of 17% in 2023 (15% in 2022) 2. EPS of €1.48 in 2023 (€1 21 in 2022)
nsure competitive returns to shareholders by guaranteeing adequate distributable profit reserves of the arent Company to support the dividend policy Optimise dividend flows distributed by the BUs to the arent Company	3. DPS 2023 of €0 800 (+23% y/y) of which a portion (€0 237) was settled as an advance in ovember 2023 (€307 million) 4. Distributable reserves of the arent Company at 31 December 2023 of €1 8 billion, (€1 4 billion at 31 December 2022)
eize opportunities related to strategic M&A transactions, flexibly managing the capital and liquidity while keeping the Group's financial structure balanced	5. NFP Mail, Parcels and Distribution SBU at 31 December 2023 -€1,381 million (-€1,401 million at 31 December 2022) 6. EBITDA 2023 of €3,431 million (€3,121 million in 2022)

Annual Report 2023

With reference to the objectives listed above, during the year the Group has:

• o incurred industrial investments in the amount of €845 million, details of which are given below;
• o distributed dividends to shareholders of €883 million;
• o supported M&A transactions by committing around €145 million of liquidity mainly for the acquisition of the following companies:
  • et nsurance (€108 million);
  • Cronos (€49 5 million)

Below is the evolution of the Group's allocated capital compared to 2022 and its distribution among the BUs

Allocated capital at 31 December 2023 amounted to €10 95 billion, an increase of €0 82 billion compared to 31 December 2022, mainly due to the 2023 profit for the year of €1 93 billion, partially offset by dividends for the year of €1 04 billion (partly distributed through an interim dividend of €307 million in ovember) he Group's allocated capital is mainly attributed to the nsurance ervices (52%) and Financial ervices (28%) BUs

7.6 GROUP FINANCIAL POSITION AND CASH FLOW

€m		Changes 31 December 2023 31 December 2022
NON-CURRENT ASSETS	6,195	5,852	+343	+5.9%
NET WORKING CAPITAL	1,096	1,288	(192)	-14.9%
GROSS INVESTED CAPITAL	7,291	7,140	+152	+2.1%
SUNDRY PROVISIONS AND OTHER ASSETS/LIABILITIES	(715)	(274)	(442)	n/s
NET INVESTED CAPITAL	6,578	6,866	(288)	-4.2%
EQUITY	10,439	7,878	+2,560	+32.5%
NET DEBT (SURPLUS)/DEFICIT	(3,861)	(1,012)	(2,849)	n/s
of which: Net debt of the Mail, Parcels and Distribution SBU	2,755	2,839	(84)	-2.9%

n/s: not significant.

he oste taliane Group's non-current assets at 31 December 2023 amounted to €6,195 million, an increase of €343 million compared with the end of 2022 nvestments of €845 million contributed to the formation of fixed assets and an increase in rights of use for new stipulations, renewals and contractual changes falling within the scope of application of FR 16 equal to a total of €248 million n addition, there was an increase resulting from the first-time consolidation of et nsurance of €160 million (of which €124 million related to the recognition of provisional goodwill from acquisitions) hese changes were partially offset by depreciation and amortisation of €882 million

Also contributing to the balance of this item are equity investments in companies accounted for using the equity method for a total of €294 million, mainly relating to the investments held in Anima Holding, Financit, Replica M and, starting from the current year, the investment in sennder talia for €22 million, which, as part of the renegotiation of agreements with sennder GmbH, lost the status of subsidiary and assumed the status of associate

Group investments in 2023 amounted to €845 million nvestments classified as G, i e complying with the reference principles of the Group's 8 illars of ustainability, represent more than 70% of the total value Among the main projects we highlight the interventions relating to the olis roject "Digital Citizenship ervices Houses", the interventions of energy efficiency of the real estate assets, the automation and evolution of the sorting and delivery network from a green perspective, the improvement of the customer experience of the products and services offered to customers from a multichannel and digital perspective, the evolution of the Cloud infrastructure, as well as the adoption of management systems, equipment and infrastructures in the field of health and safety

n line with the investment programme for the period 2021-2024, designed to support the objectives of the trategic lan, around 80% of the Group's investments (€681 million) focused on the automation and modernisation of the Mail, arcels and Distribution trategic Business Unit

low-emission vehicles available in the fleet, of which approximately 5,800 electric about 26,200

n particular, the renewal of the fleet dedicated to delivery continued in 2023, with the introduction of about 3,600 new vehicles, of which about 2,200 electric, about 800 hybrid and the remainder with low emissions At 31 December 2023, the total fleet consisted of around 26,200 new lowemission vehicles n addition, some 1,600 electric vehicle charging infrastructures were installed in 2023 At 31 December 2023,

about 2,000

approximately 5,600 electricity columns are installed

During the year, new zero-emission delivery lines were also implemented on 7 city centres ( aples, Foggia, Matera, esaro, alermo, Reggio Calabria and iena) in addition to the 28 city centres already implemented in 2021-2022, for a total of 35 city centres nstead, as far as municipalities are concerned, there are about 800 with zero-emission deliveries

roperty investments concerned the redevelopment of ost Offices, the creation of new spaces for commercial specialists and mobile consultants n the area of reducing environmental impacts, work continued on automation and remote control of facility management (about 380 buildings involved in the mart Building interventions in 2023) in order to reduce

electricity consumption and CO² emissions Work also continued on the replacement of conventional lamps with L D technology (around 21,000 additional lamps in 2023) and 145 photovoltaic systems were installed in 2023, totalling more than about 310 systems with an installed capacity of over 15,000 KWp

n 2023, work continued on the routine management of safety in the workplace, in particular with the distribution of safety equipment at the territorial branches (including

around 1,400 anti-sickness kits) and information security through activities to prevent threats and counter cyber attacks Work continued on the oste taliane video

surveillance service for sites not yet served and existing systems were improved by progressively replacing digital video recorders (DVR) and obsolete anti-intrusion control units n particular, around 330 cameras and over 170 ntrusion Control anels were replaced Furthermore, during 2023, the A A - F R ( ransported Asset rotection Association – Facility ecurity Requirements) certification was obtained149F ¹⁵⁰ on 3 sorting centres, as well as renewed at the Brescia Operations Center and 5 further orting Centres, for a total of 9 certified sites at 31 December 2023

Within the scope of echnological ransformation and ngineering, the migration of existing digital services to the new

infrastructure based on Hybrid Cloud continued, through a "containerisation" procedure of application components n addition, activities continued on the Data Driven Company project, which aims to support corporate strategies through the implementation of a Data Mesh latform150F ¹⁵¹ that will provide access to structured and customised information n Customer ervice, the transformation process sees the increasing use of the Artificial ntelligence platform to support the management of first-level contacts compared to last year Finally, among the most important initiatives in the omnichannel

buildings involved in the Smart Building interventions at 31 December 2023

¹⁵⁰ A A certification involves the implementation of physical security systems and the adaptation of security systems (access control, video-surveillance, anti-intrusion, etc ) at the logistics sites of osta Comunicazione, as well as the adoption of specific rules, procedures and audit plans so that what is implemented is aimed at protecting assets and spreading a culture of security, in compliance with company regulations, in order to ensure the reduction of exposure to the risk of theft, compliance with the international A A-F R standard according to which sites will be certified, the maintenance of air security certification (regulated agent, airport handler) and the transport of dangerous goods under ADR (Accord Dangereuses Route - road) and DGR (Dangerous Goods Regulation - air transport) (Regulatory requirement on civil aviation security Reg U 300/2008; Reg U 2015/1998 and following)

¹⁵¹ he data mesh is a decentralised data architecture that organises data according to a specific business domain n this type of architecture, data is conceived as a "product", in fact reference is made to "data product"

sphere is the completion of the gradual release on stores of the first version of the new oste taliane app, replacing the previous Ufficio ostale app, with over 2 5 million users having already made digital bookings

n the Financial ervices trategic Business Unit, total investments amounted to €56 million and mainly concerned the streamlining of sales and post-sales processes, with a focus on customer identification procedures and the simplification of contract signing at ost Offices n addition, the pilot project of the new online trading platform was launched and the enhancement of customer engagement continued15F 152

n the nsurance ervices trategic Business Unit, during 2023, project activities continued to support industrial development, which particularly concerned the finalisation of oste Vita's acquisition of et nsurance pA through its subsidiary et Holding pA Furthermore, the functional/infrastructural improvement activities of the most important business support systems continued and the systems adaptation interventions were completed to comply with regulatory obligations, such as the first application of the FR 17 accounting standard otal investments in 2023 amounted to €29 million

nvestments in the period of the ayments and Mobile trategic Business Unit amounted to €79 million Developments to support the fixed and mobile network offerings continued with the aim of increasing their competitiveness in the market, as well as investments in systems aimed at supporting the new sales processes in post offices, the provision of ago A services and the release of new functions in the issuing area Finally, following the launch of the oste nergia offer, development activities continue on the management platform and the release of specific functions on digital channels (app and web)

For further details on initiatives aimed at accelerating the digitalisation processes and omnichannel use of the offers of the various trategic Business Units, see the section on " trengthening of digital channels"

Net working capital at 31 December 2023 amounted to €1,096 million and decreased by about €192 million compared to the end of 2022 mainly due to:

• higher trade receivables of €226 million net of higher trade payables of €19 million;
• net decrease of approximately €310 million resulting from changes in other assets and liabilities;
• increase in current tax payables, net of current tax receivables, of €103 million

he balance of Sundry provisions and other assets/liabilities at 31 December 2023 amounted to €715 million and increased by €442 million compared to 31 December 2022 mainly due to the lower net deferred tax assets and liabilities of €579 million partially offset by the decrease in the employee termination benefits for €68 million, by the recognition of the investment in Cronos among the assets for sale for €50 million and by the decrease in the provisions for risks and charges of approximately €20 million

Equity at 31 December 2023 amounted to €10,439 million, an increase of €2,560 million compared to 31 December 2022 his change is mainly attributable to:

• the positive effect of the profit for the year of €1,933 million;
• the negative effect from the distribution of dividends in the amount of €883 million (of which €307 million as interim ordinary dividend planned for the financial year 2023);
• the net positive change in the fair value reserve for investments held by the Financial ervices trategic Business Unit of approximately €1,550 million;
• the decrease in the cash flow hedge reserve of about €170 million

Group et Debt/(Funds)

¹⁵² mproving the customer experience through the set of interactions between the various channels, especially digital

Annual Report 2023

Poste Italiane Group Report on Operations at 31 December 2023

Total net debt/(funds) at 31 December 2023 showed funds of €3,861 million, an improvement of €2,848 million from 31 December 2022 (funds of €1,012 million) he following mainly contributed to this change:

• a positive operating result of €2,648 million (of which €1,933 million referable to the profit for the year and €882 million to depreciation and amortisation partially offset by the net uses of the employee termination benefits for €103 million and other items for approximately €64 million);
• the positive effect of the change in working capital and taxes (excluding the effects of changes in the scope of consolidation) amounting to approximately €227 million:
  • o increase in gross trade receivables of about €300 million (excluding the contribution from corporate transactions);
  • o €61 million of higher trade payables (excluding the contribution from corporate transactions);
  • o a decrease in Other Receivables and Assets net of Other Liabilities of about €318 million mainly attributable to the net decrease in tax-related items mainly connected to the operations of the nsurance ervices and Financial ervices trategic Business Units;
  • o positive effect from the change in taxes for about €147 million;
• investments in assets for €845 million;
• the negative effect from the distribution of dividends in the amount of €883 million (of which €307 million as interim ordinary dividend planned for the financial year 2023);
• the positive valuation effects for the year amounting to €2,145 million, mainly attributable to positive fluctuations in the value of investments classified as FV OC , held mainly by the Financial ervices trategic Business Unit, and residually by the other BUs;
• investments in shareholdings amounting to €145 million mainly related to the acquisition of et nsurance (of which about €108 million for disbursement) and Cronos (€49 5 million including the second capital increase subscribed by oste Vita for about €47 8 million);
• other decreases totalling €299 million, mainly attributable to the increase of €234 million in financial liabilities for leases falling under FR 16

With reference to the financial instruments held by the Financial ervices trategic Business Unit, the overall change in the fair value during the year was positive for approximately €2 3 billion and a positive amount of €1 9 billion was recognised in the specific equity reserve for the part not covered by fair value hedge instruments and €0 4 billion for the part covered in the statement of profit or loss, offset by the negative change in fair value hedge derivative instruments

At 31 December 2023, the total balance of derivatives in fair value hedge was positive for €3 6 billion (€5 4 billion at 31 December 2022)

n addition, as part of these hedging transactions, the arent Company shows a balance of liabilities for Guarantee Deposits of about €4 8 billion (€2 8 billion at 31 December 2023) he change, compared to the previous year, is mainly due to the reduction in fair value hedge derivatives following early settlement transactions

Analysis of the net debt/(funds) of the Mail, arcels and Distribution trategic Business Unit

he Net debt/(funds) of the Mail, Parcels and Distribution Strategic Business Unit at 31 December 2023 showed a debt of €2,755 million (€1,381 million net of lease liabilities and valuation effects), an improvement of €84 million compared to 31 December 2022, when it showed a debt of €2,839 million (€1,401 million net of lease liabilities and valuation effects)

et of lease liabilities and valuation effects in the year, the change amounting to €21 million reflected:

• a positive operating result (FFO) of €339 million due to the negative result for the year of €155 million net of the capital gain realised following the renegotiation of the agreements with ennder Gmbh (€109 million), depreciation and amortisation (excluding rights of use) for €573 million and of the net uses of the provision for employee termination benefits, provisions for risks and other minor changes for approximately €79 million;
• a negative effect related to the change in net working capital of €29 million;
• new investments in fixed assets for €814 million;
• a net positive cash flow from dividends and other changes of about €526 million mainly due to the net effect of dividends received from companies (€1,397 million) and paid to shareholders outside the Group (€883 million)

he Payables shown in the net debt/(funds) of the Mail, arcel and Distribution trategic Business Unit primarily relate to:

• an B loan of €173 million maturing in March 2026;
• an B loan of €400 million maturing in October 2026;
• an B loan of €150 million maturing in May 2028;
• an B loan of €100 million maturing in May 2028;
• a C B loan of €125 million maturing in December 2030;
• two senior unsecured bonds issued on 10 December 2020 with a total nominal value of €1 billion, the first of €500 million maturing in December 2024 and the second of €500 million maturing in December 2028

Analysis of the MA net debt/(funds) of the Mail, arcels and Distribution trategic Business Unit

	31 December	31 December
(in €mln)
	2023	2022
A. Cash and cash equivalents	(650)	(575)
B. Cash equivalents	-	-
C. Other current financial assets	(6)	(1)
D. Liquidity (A+B+C)	(656)	(577)
E. Current financial debt (including debt instruments, but excluding the current portion of	813	379
F. Current portion of non-current debt	1	1
G. Current financial debt (E+F)	814	381
H. Net current financial debt (G + D)	158	(196)
I. Non-current financial debt (excluding current portion and debt instruments)	2,058	2,001
J. Debt instruments	498	997
K. Trade payables and other non-current payables	15	18
L. Non-current financial debt (I + J + K)	2,571	3,017
M. Total financial debt (H + L)	2,729	2,821

MA financial debt reconciliation with et debt/(funds) including intersegment transactions

	31 December	31 December
(in €mln)	2023	2022
M. Total financial debt (H + L)	2,729	2,821
Non-current financial assets	(647)	(539)
K. Trade payables and other non-current payables	(15)	(18)
Tax receivables Law No. 77/2020	(407)	(420)
Net Debt/(Funds) Industrial	1,661	1,843
Intersegment financial receivables and payables	1,094	996
Net debt/(funds) for capital outside ring-fence including intersegment transactions	2,755	2,839

Existing cash and credit lines are sufficient to cover expected financial requirements More specifically, at 31 December 2023, the cash of the Mail, arcels and Distribution trategic Business Unit amounted to €0 6 billion (mainly relating to the arent Company), while unused committed and uncommitted lines to support liquidity totalled approximately €3 4 billion

he table below provides details of the credit lines at 31 December 2023 and 31 December 2022

Description	Balance at	Balance at
(€m)	31.12.2023	31.12.2022
Committed credit lines	2,450	2,450
Short-term loans	2,450	2,450
Uncommitted credit lines	2,201	2,159
Short-term loans	960	1,005
Current account overdrafts	185	145
Unsecured loans	1,056	1,008
Total	4,651	4,609
Uncommitted uses	569	652
Short-term loans	0	1
Unsecured loans	569	652
Total	569	652

7.7 PERFORMANCE OF POSTE ITALIANE SPA AND REPORT ON OPERATIONS OF BANCOPOSTA RFC

O RA G R UL OF O AL A A

F A C AL O O A D CA H FLOW OF O AL A A

R OR O O RA O OF BA CO O A RFC

7.7.1 OPERATING RESULTS OF POSTE ITALIANE SpA

Reclassified profit or loss

(€m)	2023	2022		Changes
Revenue from sales and services	9,880	8,904	+976	+11.0%
Other income from financial activities	271	428	(157)	-36.6%
Other operating income	1,003	721	+282	+39.1%
Revenues	11,155	10,053	+1,102	+11.0%
Total personnel expenses	5,348	4,987	+361	+7.2%
Other operating expenses	3,505	3,246	+259	+8.0%
Costs	8,853	8,233	+620	+7.5%
EBITDA	2,302	1,820	+482	+26.5%
Depreciation, amortisation and impairments	773	744	+29	+4.0%
EBIT	1,528	1,076	452	+42.0%
EBIT MARGIN	13.7%	10.7%
Finance income/(costs)	90	24	+66	n/s
Gross profit	1,619	1,100	+518	+47.1%
Taxes	229	253	(24)	-9.5%
Net profit	1,390	847	+542	+64.0%

Total revenue generated by oste taliane pA in 2023 amounted to €11,155 million, up 11% year-on-year (€10,053 million in 2022) he item Revenue and ncome recorded growth of €976 million (+11%) compared to 2022, mainly thanks to the contribution of revenue from financial services, which show an increase compared to the financial year 2022 mainly attributable to the income from the use of postal current account deposits and free cash balances and to the remuneration of postal savings deposits With reference to the former, the change in the item refers mainly to income from investments in securities and income from deposits held with the M F, both related to the effects of the upward shift in the interest rate curve With reference to the remuneration of postal savings deposits, the increase in the item compared with the previous year reflects the fees accrued at 31 December 2023, based on the upplementary and Amending Deed of 30 January 2024 (effective retroactively from 1 January 2023 to 31 December 2023) to the Agreement in place with Cassa Depositi e restiti

he decrease in Other income from financial activities, compared to the previous year, was mainly due to lower realised gains from financial instruments, partially offset by higher other income for interest accrued on guarantee deposits paid to counterparties he increase in Other revenue and income was mainly due to higher dividends distributed by subsidiaries during the year and the capital gain of about €91 million generated by the sale of the controlling interest in the company sennder

Total costs, net of depreciation, amortisation and impairments, went from €8,233 million in 2022 to €8,853 million in 2023 due to the increase in total personnel expenses (+€361 million compared to 2022) and other operating costs (+€259 million compared to 2022)

he total personnel expenses increased by €361 million (+7 2%) compared to 2022 his change is attributable to both the increase in the extraordinary component and the increase in the ordinary component he increase in the extraordinary component is mainly related to the additional and extraordinary performance bonus (approximately €130 million) paid to employees in ovember 2023, as well as higher provisions for early retirement incentives he change in the ordinary component compared to the previous year derives from the increase in the contractual minimums triggered in July 2022 and July 2023 in connection with the ational Collective Labour Agreement renewed in June 2021 and the increase in the variable component driven by the share linked to commercial incentive

he increase in other operating costs is mainly attributable to: i) the increase in financial operating expenses mainly due to the effect of the change in the interest rate curve, which generated higher interest expenses on deposits under guarantee received from counterparties, on repurchase agreements and on postal current accounts of public customers; ii) higher costs of goods and services mainly attributable to the general increase in costs generated by the international inflationary pressure, the increase in costs for logistics and delivery services related to the recovery in demand in the parcels segment and fees related to the increased use of Cloud technology hese changes are partially offset by the decrease in other costs and charges mainly attributable to lower provisions for risks on tax credits compared to the previous year (for further details, see ote B4 - rovisions for risks and charges and ote A10 - ax Credits, Law no 77/2020 in oste taliane's Financial tatements in the section oste taliane's Financial tatements)

he item Depreciation, Amortisation and Impairments increased by €29 million compared to the previous year due to higher amortisation on utilisation rights (€15 million), largely related to the expansion of the leased fleet, and depreciation of the item roperty, plant and equipment (€5 million)

Income taxes went from €253 million in 2022 to €229 million in 2023, a decrease of €24 million

oste taliane pA's net profit for the year ended 31 December 2023 was €1,390 million (€847 million in 2022)

7.7.2 FINANCIAL POSITION AND CASH FLOW OF POSTE ITALIANE SpA

et invested capital and related hedging

	31 December 2023	31 December 2022	Changes
(€m) Tangible assets				+5.1%
	2,348	2,234	+114
Intangible assets	1,053	945	+108	+11.5%
Right-of-use assets	970	1,040	(70)	-6.7%
Investments	3,695	3,676	+18	+0.5%
Non-current assets	8,066	7,895	+170	+2.2%
Trade receivables and Other receivables and assets	5,556	5,281	+275	+5.2%
Trade payables and Other liabilities	(5,328)	(5,332)	+4	+0.1%
Current tax assets/(liabilities)	(81)	54	(135)	-48.6%
Total net working capital	148	3	+144	n/s
Gross invested capital	8,214	7,899	+315	+4.0%
Provisions for risks and charges	(1,228)	(1,257)	+28	+2.3%
Employee termination benefits	(608)	(678)	+70	+10.3%
Prepaid/deferred tax assets/(liabilities)	656	1,224	(567)	-46.4%
Net invested capital	7,033	7,188	(155)	-2.2%
Equity	5,653	3,808	+1,845	+48.5%
of which profit for the period	1,390	847	+542	+64.0%
of which fair value reserve	(825)	(2,374)	+1,549	+65.2%
Financial liabilities	96,863	104,704	(7,841)	-7.5%
Financial assets	(81,272)	(84,197)	+2,926	+3.5%
Tax receivables Law No. 77/2020	(8,318)	(9,021)	+703	+7.8%
Cash and deposits attributable to BancoPosta	(4,671)	(5,848)	+1,177	+20.1%
Cash and cash equivalents	(1,222)	(2,258)	+1,036	+45.9%
Net debt/(funds)	1,380	3,380	(1,999)	-59.2%
n/s: not significant

oste taliane p,A 's net invested capital amounted to €7,033 million at 31 December 2023 (€7,188 million at 31 December 2022)

Non-current assets amounted to €8,066 million, an increase of €170 million compared to 2022 nvestments in tangible and intangible assets of €780 million also contributed to the formation of non-current assets, partly offset by amortisation, depreciation and impairments of €550 million he item Right-of-use assets recorded a negative change of €70 million, which takes into account the acquisitions of the year for €134 million (mainly referring to the rental of company vehicles used for the delivery of mail and parcels), positive adjustments of €54 million for contractual changes that occurred during the year, disposals (€35 million) relating to the early termination of existing contracts with respect to their natural expiry and depreciation and amortisation for the year amounting to €223 million he value of equity investments increased by €18 million compared to 31 December 2022, mainly due to the effect of: i) the purchase, on 19 July 2023, of the remaining 30% of the share capital of MLK Deliveries pA for a total of €20 million, following the exercise by oste taliane of its call option on the shares held by Milkman pA in MLK Deliveries pA With the transfer of the stake, oste taliane acquired total control of MLK Deliveries pA and iii) the transfer, on 29 June 2023, of 35% of the stake held in sennder italia rl to the shareholder sennder ecnologies GmbH as part of the broader renegotiation of the current partnership between the company and oste taliane Following the completion of the transaction, which resulted in the recognition in the statement of profit or loss of a total capital gain of approximately €91 million, oste taliane holds a 25% stake in sennder talia rl which, therefore, lost its status as a subsidiary and assumed that of an associate

Net working capital at 31 December 2023 amounted to €148 million, up €144 million compared to year-end 2022, mainly due to the combined effect of: i) the increase in other receivables due from subsidiaries and associates mainly attributable to the amount due from oste taliane pA in its capacity as tax consolidator (+€106 million); ii) the increase in trade receivables mainly attributable to the increase in amounts due from Cassa Depositi e restiti (+€225 million) in respect of amounts to be invoiced accrued at the date, based on the upplementary and Amending Deed of 30 January 2024 to the Agreement in place with Cassa Depositi e restiti and mentioned above; iii) the increase in current tax liabilities (+€105 million) and the reduction in current tax assets (+€30 million) (net of the balance of current tax assets)

he balance of the Provisions for risks and charges stands at €1,228 million (€1,257 million at the end of December 2022) and mainly takes into account the risk provision for tax credits Law 77/2020 equal to €400 million (€320 million at 31 December 2022) for risks on tax credits and the provisions for early retirement incentive for €283 million (€352 million at 31 December 2022), which reflects the estimate of the liabilities that the Company has irrevocably committed to support for voluntary early retirement incentive payments, according to the management practices in place with the rade Union Representatives for a defined number of employees who will terminate their employment relationship by 31 December 2025

he balance also includes provisions for disputes with third parties hedging the expected liabilities deriving from different types of legal and out-of-court disputes with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers At 31 December 2023, the provision amounted to €209 million (€265 million at 31 December 2022) Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled

he rovision for personnel expenses amounts to €131 million (€101 million at the end of December 2022) to cover expected liabilities arising in relation to the cost of labour, which are certain or likely to occur but whose estimated amount is subject to change hey have increased by €121 million during the year to reflect the estimated value of new liabilities and decreased as a result of past contingent liabilities that failed to materialise (€31 million) and settled disputes (€60 million)

rovisions for operational risks relating to liabilities arising from transactions conducted within Banco osta and amounting to €95 million at 31 December 2023 decreased compared with the balance at 31 December 2022 (€109 million) Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled

he net balance of Deferred tax assets/(liabilities) at 31 December 2023 was positive in the amount of €656 million (1,224 at 31 December 2022); the change in the period was largely attributable to the net negative tax effect on the net positive change in the fair value reserve of investments in available-for-sale securities

Equity amounted to €5,653 million and increased by €1,845 million compared to the previous year mainly in relation to the profit achieved in the year (€1,390 million), the change in the fair value reserve (+€1,549 million) in which the fluctuations (positive and/or negative) from the valuation of investments classified in the FV OC category are substantially reflected hese changes are partially offset by the payment of the 2022 balance and 2023 interim dividend to shareholders (-€877 million) and the movement in the cash flow hedge reserve (-€170 million)

MA Financial Debt of oste taliane pA's capital outside the ring-fence

(€m)	31 December 2023	31 December 2022
A. Cash and cash equivalents	(564)	(469)
B. Cash equivalents	-	-
C. Other current financial assets	(61)	(29)
D. Liquidity (A+B+C)	(625)	(498)
E. Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt)	2,105	1,590
F. Current portion of non-current debt	1	1
G. Current financial debt (E+F)	2,106	1,591
H. Net current financial debt (G + D)	1,481	1,093
I. Non-current financial debt (excluding current portion and debt instruments)	1,720	1,671
J. Debt instruments	498	997
K. Trade payables and other non-current payables	15	18
L. Non-current financial debt (I + J + K)	2,233	2,686
M. Total financial debt (H + L)	3,714	3,779

Reconciliation of financial debt MA

(€m)	31 December 2023	31 December 2022
M. Total financial debt (H + L)	3,714	3,779
Non-current financial assets	(1,001)	(875)
K. Trade payables and other non-current payables	(15)	(18)
Tax receivables Law No. 77/2020	(407)	(421)
Net Debt/(Funds) Industrial	2,291	2,465
Intersegment financial receivables and payables	366	349
Net debt/(funds) for capital outside ring-fence including intersegment transactions	2,657	2,814

7.7.3 REPORT ON OPERATIONS OF BANCOPOSTA RFC

COR ORA GOV R A C A BA CO O A RFC

With regard to Banco osta RFC's governance, the rules governing the organisation, management and control of Banco osta's operations are contained in the specific BancoPosta RFC Regulation approved by the xtraordinary hareholders' Meeting of 14 April 2011 and recently amended by the xtraordinary General Meeting of 29 May 2018 As a result of the issuance by the Bank of taly on 27 May 2014 of an update to the rudential upervisory rovisions for Banks, the provisions for banks on the organisational and governance structure, the accounting and control system and the capital adequacy and risk containment institutions apply to Banco osta RFC

Further information regarding the corporate governance structure is provided in oste taliane's "Report on Corporate Governance and the Ownership tructure", approved from time to time by the Board of Directors and published in the "Governance" section of the Company's website

Banco osta also has an "Organisational and Operational Regulation" (ROF) approved by oste taliane's Board of Directors, the latest update of which dates back to 28 June 2023 hese regulations describe Banco osta's operating model, its organisational structure and the related responsibilities assigned to the various functions, as well as the processes for assigning Banco osta's business functions to oste taliane and for outsourcing Banco osta RFC

he "Governance of Assigning and Outsourcing" process for Banco osta RFC, which had already been reviewed in 2018, was further strengthened, most recently during 2023, with regard to the areas of oversight of assigned and/or outsourced activities, both in relation to the actions included in the Bank of taly's 2022 Action lan, in particular for the aspects of monitoring and control over outsourced activities, and in line with the provisions of the 40th update of Bank of taly Circular 285, with the extension of the scope of application of the Regulation to C third parties and the expansion of the requirements envisaged in the matter of outsourcing to cloud service providers

During the first quarter of 2023, the process of renewing the Operating Guidelines152F ¹⁵³ for the three-year period 2023-2025 was concluded he signed Operating Guidelines were sent to the Bank of taly in April 2023 During the year, a new Operating Guideline was also signed with the Group's trategic Marketing Function for market research activities on products, analysis of Banco osta customer satisfaction, and analysis of the positioning and trends of the various Banco osta products on the market his Operating Guideline, as part of the evaluations required by the Regulation governing the process of assignment and outsourcing of Banco osta RFC, was classified as a on- ssential or mportant Function (F )

n 2023, with the aim of overseeing and strengthening the methods of dialogue on the assigned and outsourced functions, the Operational Management Committees continued with the oste taliane functions ( rivate Market, Digital, echnology & Operations, ecurity, Fund Movement, Business and ublic Administration, Administration, Finance and Control, Legal Affairs, rivacy, Communication, Anti-Money Laundering, C R also for the field of Business Continuity Management, Fraud Management and Human Resources and Organisation) eriodic meetings also continued with Banco osta Fondi GR, which provides the financial management service for Banco osta RFC, and with oste ay, which manages for Banco osta products such as pay slips, car tax, RAV, bank transfers, direct debits, postal orders, money orders, domiciliary collections, eurogiro, book cards and the payments platform

n March 2023, the renewal activities for the contract between Banco osta and oste ay relating to collection and payment services were concluded

till on the subject of outsourcing, in 2023, the risk profile assessments of the renewals for the outsourcing of aper Archive Management and related dematerialisation ( ostel), for the outsourcing of the Financial Back Office for the processing of bills, cheques and treasury, and for the outsourcing of back office services for judicial inspections in the Group's Anti-Money Laundering area were concluded with a positive outcome

ystem integration and specialised back office services for the evolved advisory solution remium and evolved advisory solution services for the private segment were also evaluated as outsourcing of on- ssential and mportant Functions

Finally, in December 2023, three outsourcings of ssential or mportant Functions were authorised for back office management services through a cloud-based case management and robotics platform called "Digital Desk", for cloud services to the provider Amazon Web ervices nc and of financial back office services for the areas of Cheques, Bills, reasury, uccession, Credit tatements, Foreclosures, Disallowances, Administrative ervices and other activities related to financial services

Also in December, the first report on outsourcing was sent to the Bank of taly he survey, which will be conducted on an annual basis, collects information on outsourcing contracts useful for assessing the main outsourcing risks arising from situations of concentration of service providers, the spread of the sub-outsourcing phenomenon and the increasing use of cloud computing

¹⁵³ Contracts whereby Banco osta Assets assigns operational or control activities to functions of oste taliane he Operating Guidelines establish, among other things, the applicable levels of service and transfer prices and are effective following an authorisation process involving the relevant functions, the Chief xecutive Officer and, where required, the Company's Board of Directors lease refer to the nformation on Banco osta RFC in the eparate tatement of Banco osta RFC at 31 December 2023 in this Annual Report for further details

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

BANCOPOSTA RFC FINANCIAL REVIEW

Main indicators	2023	2022
CET 1 CAPITAL 1*	2,654	2,618
TOTAL CAPITAL 2*	3,104	2,968
CET 1 RATIO 3	18.9%	20.3%
TOTAL CAPITAL RATIO 4*	22.1%	23.1%
ROA 5	0.6%	0.6%
ROE 6*	23.0%	23.0%
Net interest income/Net interest and other banking income 7	37.6%	35.3%
Operating expenses/Net interest and other banking income 8	85.5%	84.7%

(1) CET 1 Capital includes the initial equity reserve and non-distributable profit reserves (Tier 1 capital), taking into account the transitional regime (Regulation 2017/2395 EU).

2 TOTAL CAPITAL includes CET 1 CAPITAL, and Additional Tier 1 capital (AT 1)

3 The CET 1 Ratio represents the adequacy of Tier 1 capital in terms of Pillar 1 capital requirements (operational, credit, counterparty and market risks).

4 The TOTAL CAPITAL RATIO expresses the adequacy of treasury funds (Total Capital) with respect to the weighted exposure to Pillar 1 risks (operational, credit, counterparty, exchange rate).

5 ROA (Return On Assets). Represents the ratio of profit for the period and total assets.

⁶ ROE (Return on Equity) represents the ratio of profit for the period and equity after deducting profit for the period and the valuation reserves.

7 Represents the contribution from net interest income as a ratio of net interest and other banking income.

⁸ Cost/income ratio is the ratio between Operating expenses and Net interest and other banking income.

* The 2023 ratios and shareholders' equity take into account the calculation of the €60 million allocation of profit for the year 2023 as they are the subject of the resolution of the Board of Directors of Poste Italiane concerning the proposed allocation of profit for the year 2023 and in compliance with the provisions of Article 26 of Regulation (EU) No. 575/2013.

Poste Italiane Group Report on Operations at 31 December 2023

O RA G RFORMA C

rofit or loss

(€m)	2023	2022		Changes
Interest and similar income	2,778	2,095	+683	+32.6%
Interest expense and similar charges Net interest income	(587) 2,191	(172) 1,923	(415) +268	n/s: not significant +13.9%
Fee and commission income	3,670	3,454	+216	+6.3%
Fee and commission expenses	(200)	(216)	+16	+7.4%
Net fee and commission income	3,470	3,238	+232	+7.2%
Profits/(Losses) on hedging* Gains (losses) on sale of financial assets or liabilities	4 158	(49) 335	(177)	+53 +108.2% -52.8%
Net interest and other banking income	5,823	5,446	+377	+6.9%
Administrative expenses	(4,973)	(4,627)	(346)	-7.5%
a) personnel expenses	(35)	(32)	(3)	-9.4%
b) other administrative expenses Net operating expenses	(4,938) (4,973)	(4,595) (4,627)	(343) (346)	-7.5% -7.5%
Net operating result**	850	819	+31	+3.8%
Net allocations to Provisions for risks and charges and other operating income and charges***	(4)	15	(19)	-126.7%
Net impairment losses/reversals of impairment losses due to credit risk	(12)	(1)	(11)	n/s: not significant
Current pre-tax result	834	834	-	-
Taxes	(233)	(231)	(2)	-0.9%
PROFIT/(LOSS) FOR THE PERIOD n/s: not significant	600	602	(2)	-0.3%
* The value reported in the 2022 comparative includes a reclassification of €1 million classified in the 2022 Annual Report under the item "Profits/(losses) on financial assets and liabilities measured at fair value through profit or loss".
** Net operating income differs from BancoPosta's operating income included in the consolidated operating income of the Financial Services SBU in that the latter includes "net provisions for risks and charges and other operating income and charges" and "net adjustments/reversals for credit risk", while it excludes the result from financial operations.
*** The value reported in the 2022 comparative includes a reclassification of €6 million classified in the 2022 Annual Report under the item "Other operating income/(expenses)".
Net interest income amounted to €2,191 million, an increase of 13 9% (+€268 million) nterest income, deriving mainly
from the yield on investments in securities, interest-bearing deposits with the M F, tax credits, repo transactions and
collateralisation on derivatives, totalled €2,778 million, up 32 6% from €2,095 million in 2022				he change in this item is
mainly due to higher income from investments in securities and the related derivatives portfolio, as well as from deposits
with the M F from postal current account deposits belonging to public customers
nterest expense, essentially attributable to current account relationships, repurchase agreement transactions and
collateralisation of derivative transactions, amounted to €587 million and increased compared to €172 million in 2022
(+€415 million) he change in this item is mainly due to the increase in interest paid to public customers on postal current
account balances, as well as to higher charges incurred for repurchase agreements and guarantee deposits
Net commissions stood at €3,470 million and showed an increase of €232 million (+7 2%) compared to the previous year
Commission income totalled €3,670 million, an increase of 6 3% compared to €3,454 million in 2022 (+€216 million)				he
positive change mainly reflects the effect of higher revenue from the postal savings business and an improvement in
insurance brokerage commissions
Commission expenses amounted to €200 million, a decrease of 7 4% compared to €216 million recorded in 2022 (-€16
million) he change in this item is essentially attributable to lower costs accrued under the service contract signed with
the oste ay group company
he rofits/(Losses) on trading and hedging of €4 million mainly includes the negative effect of the ineffectiveness
component of existing hedging derivatives, as well as the positive change in the fair value of the Visa ncorporated				eries
C Convertible articipating referred tock held in the portfolio, partially offset by the negative change in the forward sale
derivative contract for the shares themselves Last year, the item included the effect of charges generated by derivative
instruments entered into to hedge the index-linked component to which the remuneration of the				ublic Administration
deposits is linked
et income from disposals of financial assets stood at €158 million, a decrease of 52 8% compared to the €335 million of
2022 (-€177 million)

n/s: not significant

Net operating expenses, which totalled €4,973 million, included ersonnel expenses of €35 million (+9 4% compared to 2022) and Other administrative expenses of €4,938 million, up 7 5% from €4,595 million in 2022 (+€343 million)

et provisions for risks and charges and other operating income and expenses showed a balance of -€4 million, compared to +€15 million in the previous year, and include: (i) releases of rovisions for risks and charges of €8 million, which compares with the release of €21 million in 2022, which was affected by the revision of the estimate of certain risks related to the money order product and disputes relating to Banco osta RFC; (ii) Other operating income and expenses, which amounted to a negative €12 million, up from the negative €6 million reported in 2022

et adjustments and reversals for credit risk amounted to -€12 million (-€11 million compared to 2022) he item mainly reflects the negative effect of the value of xpected Credit Losses on the securities portfolio; the 2022 value included the release of an impairment provision to cover an impaired loan, collected in the first months of 2023

After taxes of €233 million (€231 million in 2022), the financial year 2023 closes with a Profit for the period of €600 million

R OURC OF BA CO O A RFC

Banco osta's average workforce, all permanent employees, at 31 December 2023 was 412 (15 more than the 397 of the previous year) and was composed as follows:

Average number in full-time equivalent terms	2023	2022
Executives	26	28
Middle managers	313	298
Operational staff	73	71
Total	412	397

At 31 December 2023, Banco osta has 9 second-level functions, including: 2 Marketing Functions, rivate Marketing and Business and ublic Administration Marketing; the roduct Channel upport Function, dedicated to the training of commercial channels for the offer of financial and insurance services; 3 taff Functions: Administration, lanning and Control, Operating rocesses and echnical ecretarial services; 3 Control Functions: Compliance, nternal Auditing, Risk Management and Outsourcing Governance

Furthermore, within Banco osta, there is the Financial and nsurance ervices Committee, which has the objective of addressing, in line with the roduct Governance process, the issues connected to the development and distribution of products and services placed by Banco osta, with a view to unitary and integrated vision of the entire offering portfolio, as well as monitoring the performance of financial investments relating to deposits from private customers and public administration he Committee is chaired by the Head of Banco osta and meets in two sections: " roducts" and "Financial nvestments"

he Financial and nsurance ervices Committee met a total of 19 times during 2023 (10 for the roducts ection, 9 for the nvestments ection); 4 written consultations were also produced: 3 for the roducts section and 1 for the nvestments section

At 31 December 2023, over 31,000 hours of technical/specialist, regulatory/mandatory and behavioural/managerial training had been provided to Banco osta staff via classroom, webinar and e-learning platform

Financial position and cash flow

tatement of financial position

	31 December 2023	31 December 2022		Changes
Cash and cash equivalents	4,732	5,874	(1,142)	-19.4%
Financial assets measured at fair value through profit or loss	26	40	(14)	-35.0%
Financial assets measured at fair value through other comprehensive income	33,069	33,161	(92)	-0.3%
Financial assets measured at amortised cost	44,562	46,576	(2,014)	-4.3%
Hedging derivatives Tax assets	4,257 642	6,109 1,157	(1,852) (515)	-30.3% -44.5%
Other assets	10,857	11,521	(664)	-5.8%
TOTAL ASSETS	98,145	104,438	(6,293)	-6.0%
Liabilities and Equity
(€m)	31 December 2023	31 December 2022		Changes
Financial liabilities measured at amortised cost	90,964	98,944	(7,980)	-8.1%
Financial liabilities held for trading Hedging derivatives	3 1,136	4 971	(1) +165	-25.0% +17.0%
Tax liabilities	266	225	+41	+18.2%
Other liabilities	2,833	2,789	+44	+1.6%
Employee termination benefits Provisions for risks and charges	2 163	2 188	- (25)	- -13.3%
TOTAL LIABILITIES	95,367	103,123	(7,756)	-7.5%
Valuation reserves	(841)	(2,223)	+1,382	+62.2%
Equity instruments	450	350	+100	+28.6%
Reserves Net profit/(Loss) for the year (+/-)	2,570 600	2,585 602	(15) (2)	-0.6% -0.3%
TOTAL EQUITY	2,778	1,314		+1,464 +111.5%
TOTAL LIABILITIES AND EQUITY	98,145	104,438	(6,293)	-6.0%
Assets are represented by cash and cash equivalents, financial assets, hedging derivatives, tax assets and other assets he item Cash and cash equivalents amounted to €4,732 million, down by 19 4% compared to €5,874 million at 31
December 2022 (-€1,142 million, -19 4%), and is mainly composed of liquidity at		ost Offices and valuables transport
companies, amounting to €3,969 million, and deposits in accounts at the Bank of taly intended for interbank settlements,
amounting to €696 million he decrease is mainly attributable to the improvement in market rates compared to the rates
recognised on deposits with the Bank of taly
Financial assets at fair value through profit or loss amounted to €26 million and were attributable to the fair value of 32,059
Visa ncorporated ( eries C Convertible articipating referred		tock) convertible shares, the change of which from 31
December 2022 is shown in et income from financial assets and liabilities at fair value through profit or loss During the
first half of the year, 101,900 ordinary shares were sold for a total value of approximately €21 million
Financial assets measured at fair value through other comprehensive income, which amounted to €33,069 million,
decreased by 0 3% from €33,161 million at 31 December 2022 (-€92 million)		he decrease in this item is mainly due to
the negative effect of net sales of securities compared to the previous year, mitigated by the improvement in the fair value
of the securities portfolio
At €44,562 million, financial assets measured at amortised cost decreased by 4 3% from €46,576 million at 31 December
2022 (-€2,014 million) he decrease in this item was mainly due to the decrease in loans and deposits with the M F (-
€4,088 million) and in amounts due from other financial counterparties for collateralisation transactions (-€1,234 million),
partially offset by a positive change in new investments in securities issued or guaranteed by the talian				tate (+€2,498
million)
he change in loans and deposits with the M F is mainly attributable to a contraction in deposits with the				ublic
Administration and private deposits not yet invested in securities		he reduction in guarantee deposits, on the other hand,
is mainly attributable to lower deposits paid as collateral in repo transactions, against a reduction in the volumes of the
latter
Hedging derivatives with positive fair value at 31 December 2023 amounted to €4,257 million, down compared to €6,019

derivatives and the significant decrease in the notional amount that occurred during the year as a result of forward sales and purchases reaching maturity, as well as the early termination of certain fair value hedges as part of a broader securities portfolio restructuring strategy

ax assets amounted to €642 million, a decrease of €515 million (-44 5%) compared to 31 December 2022, mainly due to deferred tax assets as a result of changes in Valuation reserves in quity

Other Assets decreased by 5 8% (-€664 million), from €11,521 million at 31 December 2022 to €10,857 million at 31 December 2023, mainly attributable to lower loans and higher offsets of tax credits acquired from customers (as per Law Decree no 34/2020 then converted into Law no 77/2020)

he principal liabilities are represented by financial liabilities, hedging derivatives, tax liabilities, other liabilities and provisions

Financial liabilities measured at amortised cost, equal to €90,964 million (with a decrease of €7,980 million compared to the €98,944 million at 31 December 2022, -8 1%) include: (i) amounts due to customers of €80,628 million (€86,094 million at 31 December 2022, down by €5,467 million equal to -6 3%) attributable to deposits carried out through current accounts, repurchase agreements and to payables for guarantee deposits paid by counterparties; (ii) payables to banks for €10,336 million (€12,850 million at 31 December 2022, down by €2,514 million, -19 6%) referable, also in this case, to current account relationships and transactions in repurchase agreements and payables for guarantee deposits paid by banking counterparties he change from the previous year is mainly attributable to lower deposits from customers through postal current account relationships, lower utilisation of repurchase agreements and a reduction in liabilities for guarantee deposits, mainly due to the negative change in the fair value of hedging derivatives

Financial liabilities held for trading, amounting to €3 million, represent the fair value of derivative instruments entered into to hedge the Visa shares mentioned above

Hedging derivatives with negative fair value relating to securities in portfolio amount to €1,136 million (€971 million at 31 December 2022, an increase of €165 million, +17%) he reasons for the change are described in Hedging derivatives with positive fair value

ax liabilities amounted to €266 million, up €41 million from €225 million at year-end 2022 (+18%)

Other liabilities, equal to €2,833 million (€2,789 million at 31 December 2022, an increase of €44 million, +1 6%), are mainly attributable to items of a tax nature by way of withholding tax and to items in progress

he rovision for employee termination benefits, equal to €2 million, has not changed compared to the value at 31 December 2022

rovisions for risks and charges, which include amounts set aside to cover disputes and charges with personnel, customers and third parties in general, as well as various risks arising from Banco osta's operations, amounted to €163 million, down €25 million (-13 3%) on 31 December 2022

Banco osta RFC at 31 December 2023 stood at €2,778 million (€1,314 million at 31 December 2022, an increase of €1,464 million, +111 5%) he positive change is mainly due to the increase of €1,382 million in Valuation reserves, which went from -€2,223 million at 31 December 2022 to -€841 million at 31 December 2023, the improvement of which (+€1,382 million, +62 2%) is linked to the trend in the fair value of Financial assets

he other components of quity showed more moderate trends: the Banco osta RFC reserve decreased by 0 6%, from €2,585 million at 31 December 2022 to €2,569 million at 31 December 2023 (-€16 million) he decrease of €16 million is attributable to interest expenses, net of tax effects, accrued on quity instruments

quity instruments increased to €450 million, up by €100 million compared to the figure at 31 December 2022 hey include €350 million for a subordinated, perpetual loan with a non-call period of 8 years granted to Banco osta by the arent Company on 30 June 2021 and €100 million for another subordinated, perpetual loan with a non-call period of 5 years granted by the Capital outside the ring-fence to Banco osta RFC on 30 June 2023 he terms and conditions of both contracts allow them to be counted as Additional ier 1 capital

he et profit of €600 million for the financial year 2023 decreased by 0 3% compared to €602 million for the financial year 2022 (-€2 million)

Banco osta RFC's internal control and risk management system

he elements that characterise Banco osta's Control Area153F ¹⁵⁴, understood as the general context in which company resources carry out their activities and perform their responsibilities, are primarily represented by:

• the Group Code of Ethics;
• the Organisational Model pursuant to Legislative Decree no. 231/2001 and the related corporate procedures;
• the organisational structure of BancoPosta, as reflected in organisational charts, service orders, organisational notices and procedures determining the roles and responsibilities of the various functions;
• General Regulation governing the process of assignment and outsourcing of BancoPosta RFC, which respectively regulates the assignment of RFC operations to oste taliane functions in terms of decision-making processes, the minimum content of operating guidelines, levels of services, information flows and control procedures, and the process of outsourcing Banco osta functions to third parties of the oste taliane organisation, identifying the related operational phases and the roles and responsibilities of the various bodies and functions involved in the process;
• the Guidelines in the Internal Control and Risk Management System (also "SCIGR"), describing the roles and duties of Banco osta RFC's control Functions, and the procedures for coordinating and ensuring the exchange of information between these Functions and oste taliane's control Functions and the flow of information to corporate bodies;
• the system used for delegating powers to function heads in accordance with their responsibilities

With regard to Banco osta's structure, the organisational model in place envisages autonomous and independent control functions, with respect to both the corresponding functions of oste taliane, as well as with respect to the operational functions of Banco osta, in accordance with the provisions of the specific upervisory regulations of the Bank of taly: Risk Management and Outsourcing Governance, Compliance and Internal Auditing he risk assessment techniques, methods, controls and periodic audit findings are shared amongst the above control functions to promote synergies and take advantage of the specific expertise available t is also planned that Banco osta, also in the context of controls, will make use of the other functions of oste taliane, in line with the Regulation for the process of assigning and outsourcing Banco osta RFC mentioned above

n compliance with the regulatory requirements contained in the upervisory tandards of the Bank of taly and CO OB to which Banco osta is subject, in early 2024 Banco osta's nternal Auditing function prepared its 2023 Annual Report, the purpose of which is to provide information to the various corporate bodies on the completeness, adequacy, functionality and reliability of the overall system of controls of Banco osta

he Report was prepared on the basis of the findings of the audit activities carried out by the function and set out in the 2023 Audit Plan he report contains information on the outcomes of the audit of the services contracted out by Banco osta to oste taliane's Functions under operating guidelines and the activities outsourced to providers external to the Company he activity revealed a situation of overall adequacy with the highlighting of certain aspects of attention addressed by management with specific strengthening actions

he Annual Report, presented to the Board of tatutory Auditors and the Board of Directors, was subsequently submitted to the Bank of taly he specific section regarding investment services was, on the other hand, submitted to CO OB

he final audits were in part performed with reference to the findings of oste taliane's nternal Auditing function, which is responsible, in accordance with the specific operating guidelines for the audit and the audit of the local units and distribution channels within oste taliane's network, which are responsible for Banco osta's processes and products

¹⁵⁴ Represents one of the most relevant components of the internal control system, i e a body of rules, procedures and organisational structures, which aim to prevent or limit the consequences of unexpected events and enable the achievement of strategic, operating objectives, compliance with the relevant laws and regulations, and ensure the fairness and transparency of internal and external reporting

nternal Auditing has also drawn up the Annual 2024 and Multi-year (2024-2026) Audit Plan, based on a risk assessment process designed to ensure adequate coverage of Banco osta's Business rocess Model, including risks, changing aspects of the business, regulatory issues and Banco osta RFC's organisational structures

his lan has been presented to the Board of tatutory Auditors and submitted for the attention of the Board of Directors

Lastly, it should be noted that nternal Auditing carried out, with a positive outcome, the planned verification and certification activities of the reinforcement measures defined in response to the results of the Bank of taly's inspections conducted from 14 March 2022 to 15 July 2022, which focused in particular on Banco osta's profitability and business model, governance and control systems, and interest rate risk management methods

Risk management system

Banco osta RFC has an independent Risk Management unit, responsible for ensuring, among other things, in collaboration with the Group ustainable Development, Risk and Compliance function of oste taliane pA, an integrated, retrospective and prospective view of the risk environment and of Banco osta RFC's capital and organisational adequacy he function provides a detailed evaluation of the risk profile of the financial products sold, and provides the operational and business functions involved in product development and placement with advice and support t is also responsible for periodic reporting During the first half of 2023, the Risk Appetite Framework (RAF)154F ¹⁵⁵ was revised he 2022 Annual Report and the programme of activities for 2023 were submitted to the Board of tatutory Auditors, the Control and Risk Committee and the Board of Directors, as were the CAA ( nternal Capital Adequacy Assessment rocess)15F ¹⁵⁶ report and the ublic Risk Report for 2022 hese bodies also received quarterly reports on the performance of the effective risk profile versus the determined risk appetite he principal types of risk to which Banco osta RFC is exposed in the course of its ordinary activities are described below:

• credit risk (including counterparty risk);
• market risk (including banking book rate risk);
• liquidity risk;

• operational risk

As regards the development of relevant risks, 2023 was characterised by a decrease in talian government bond yields (10-year B 3 7% at 31 December 2023, -100 bps in the last year) and in the 10-year B -Bund spread (168 bps at the end of December 2023, 75 bps lower than at the end of the previous year)

he evolution of rates and spreads led to a reduction in net capital losses at portfolio level, which went from approximately €7 2 billion at the end of December 2022 to €3 3 billion at 31 December 2023

With regard to Banco osta's capital structure, the Leverage Ratio stood at 3 2% in December 2023, the C 1 Ratio at 18 9% and the otal Capital Ratio at 22 1%, confirming Banco osta's capital strength

Details of the various areas of risk and the methods used for their measurement and prevention are provided in other sections of the Annual Report of oste taliane for the year ended 31 December 2023

Banco osta RFC events after 31 December 2023

With regard to significant events subsequent to the closing of the 2023 Financial tatements, it should be noted that on 30 January 2024, oste taliane pA and Cassa Depositi e restiti pA (CD ) signed a upplementary and Amending Deed, to the Agreement for the Collection of ostal avings ervice in force for the four-year period 2021-2024, with respect to the terms and conditions applicable to the year 2023

¹⁵⁵ he Banco osta RAF is the framework of reference that defines - in keeping with the maximum acceptable risk, the business model and strategic plan - the risk appetite, risk tolerance thresholds, risk limits and risk management policies, together with the processes needed to define and implement them

¹⁵⁶ Bank of taly defines the internal processes for determining capital adequacy in the upervisory rovisions for Banks art One ransposition of CRD V Directive itle - rudential Control rocess Chapter 1 - rudential Control rocess

Poste Italiane Group Report on Operations at 31 December 2023

his contractual integration became necessary due to changes in macroeconomic conditions compared to the situation at the time the Agreement was signed

pecifically, oste taliane and CD negotiated a number of changes to the Agreement that mainly concerned the mechanisms for defining remuneration and the revision of the budgets for technological developments and communication n addition, a comprehensive programme was planned to relaunch postal savings with CD active participation in training activities and workshops for the sales network

Outlook for Banco osta RFC

n the area of Retail Current Accounts in the first quarter of 2024, promotions with dedicated codes will continue, as well as the gradual release of the new front end of current account sales at the ost Office with the associated process simplifications and customer experience improvements

With regard to Business and ublic Administration Current Accounts, new digital services such as scheduled and standing credit transfers will be developed during 2024

On the corporate finance side, the offer will be further enhanced by introducing the so-called " hygital" model he initiative envisages the enabling of the physical channel for the placement of business financing products currently placed online, through the development of new functionalities aimed at enabling the possibility of initiating the request at the post office with subsequent completion of activities on the digital channel independently by the customer he offer will also be enriched with two new products assisted by the Central Guarantee Fund for M s: a short-term liquidity advance product on a O transaction basis, placed initially on the physical channel and then on the digital channel, dedicated to partnerships and corporations that have subscribed to the oste ay acquiring service; and a medium- to long-term loan, placed on the digital channel, dedicated to corporations

n the area of ostal avings, initiatives aimed at collecting new liquidity on the Libretto mart for actual and prospective customers are expected to continue, as well as the launch of important retention actions dedicated to the conversion of nterest-bearing ostal Certificates and upersmart Offers expiring in the fourth quarter

With regard to nvestments, the expansion of the product range continues with the launch of new products pecifically, with regard to investment products, the placement of new insurance policies in the Class and Multi-class range is planned, as well as the launch of new funds and the placement of a Bond, from third-party bank issuers, dedicated to the remium egment

O H R FORMA O

Related party transactions

nformation on transactions between Banco osta and its related parties is provided in oste taliane Financial tatements for the year ended 31 December 2023 (Banco osta RFC's eparate Report, art H of the notes)

eparate financial statements

oste taliane pA's statement of financial position includes the upplementary tatement of Banco osta RFC, prepared pursuant to art 2, paragraph 17-undecies of Law 10 converting Law Decree no 225 of 29 December 2010 which states that "the assets and relationships included in RFC are shown separately in the company's statement of financial position"

ntersegment transactions

ntersegment transactions between Banco osta and oste taliane functions outside the ring-fence are set out in oste taliane Financial tatements for the year ended 31 December 2023 (Banco osta RFC's eparate Report, art A of the notes)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

7.8 THE ESG VALUE

7.9 INTEGRITY AND TRANSPARENCY

Main types of capital	Objectives	Indicator (KPI)	Target	Baseline	Implementation status 2023	Outcome
	Adaptation of the Internal Control System framework on Sustainability Reporting in line with regulatory changes (e.g. CSRD)	Adaptation of the Internal Control System framework	Adaptation of the framework by 2024	2023 •	New
	Increase staff training on ethical principles	No. of initiatives undertaken	2 initiatives by 2024	2023	New	& ECONOMIC GROWT
Human	Group-wide implementation of the sustainable procurement framework	% coverage on Group purchases	100% by 2024	2021	70%	227 1000
Intellectual Physical/Structural	Carrying out sustainability audits (ESG) aimed at defining, establishing and consolidating a supply relationship compliant with the Minimum Safeguards and capable of supporting the process of alignment to the Taxonomy of economic activities acquired from third parties by the Poste Italiane Group	% of the Group's qualified suppliers subject to sustainability audits	· 100% by 2026	2022	30%	PEACE JUSTIC O AND STRONI STORUTION
	Implementation of the new Integrated Anti-Fraud Platform (PIAF) that combines fraud prevention objectives with improved customer satisfaction	% financial, insurance, digital products	· 100% by 2024	2020	·80%
	Definition of ESG parameters in the participation requirements and in the evaluation criteria of the technical tender offers	% ESG coverage for OEPV tenders	100% by 2024	2022	96%
	Maintaining ESG parameters in the participation requirements and in the evaluation criteria of the technical tender offers	% ESG coverage for OEPV tenders	100% by 2024	2023	New

MAIN RELATED TYPES OF CAPITAL

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023

Work with transparency and integrity

oste taliane recognises ethics and transparency as founding values of the corporate identity, as they support the Company in driving a responsible business and managing relations with stakeholders in a direct and transparent way

Compliance with laws, regulations, internal and external policies and codes of conduct, respect for rules and the utmost fairness are elements of strategic importance for the Group and are the basis for preventing any situation of conflict that may arise between corporate and personal interests

Poste Italiane: signatory of the Global Compact principles

he Group is a member of the U Global Compact and prepared an "Advanced" level Communication on rogress in 2023, in continuity with previous years

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Model 231 "The principles that guide our organisation in the management of business activities."

ince 2003, oste taliane has adopted its own Organisational Model, which is continuously updated in line with regulatory, organisational and business developments, with the aim of building a structured and organic system of guiding principles, operating procedures and other specific safeguards, inspired by criteria of sound business management and aimed, in line with the company's purpose, at preventing the commission of the offences set out in the Decree, as well as protecting the interests of stakeholders relevant to the company itself

he Model consists of a General ection and pecial ections, each of which relates to a class of offence relevant to the Company he General ection provides a description, adapted to the business specificity of oste taliane, of the contents explicitly required by Legislative Decree no 231/2001, (e g the regulation, the governance of the Company, the upervisory Board, training/information activities, the system of sanctions, etc ) as well as the company's integrated internal control and risk management system (e g the integrated risk management process, the Company Regulatory ystem, the Group's Code of thics and olicies, the Corporate Governance ystem); the individual pecial ections outline, according to a logic based on processes, the different types of offences concretely and potentially relevant in the Company, as well as the corporate processes, sensitive activities, rules of conduct and specific control principles analysed for each class of offence

n oste taliane's Model 231, sustainability issues are also of significant importance, in line with the Company's strategic direction and in consideration of the correlations and synergies between them and Decree 231 Model 231 constitutes a tool that, through the identification of specific control measures to prevent the perpetration of offences ascribable to Decree 231, also contributes to supporting the Company in the realisation of the material topics defined by it within the 8 illars of ustainability that contribute to the achievement of the United ations ustainable Development Goals

he Organisational Model is constantly updated in order to ensure, on an ongoing basis, its adequacy and effectiveness in relation to the various changes affecting both the organisation and the external context, also taking into account the progressive expansion of the so-called "predicate-crimes" referred to in Legislative Decree no 231/2001, as well as the orientations of case law on this subject

n order to clearly define the values and social role with which the Company contributes to the processes of cohesion, inclusion and sustainability of the country, as well as the rules of conduct in the performance of professional activities, the oste taliane Group has adopted a Code of thics for directors, supervisory boards, management, all employees and all those who work, directly or indirectly, permanently or temporarily, to pursue the objectives of oste taliane he Code is disseminated to all levels of the organisation with the aim of spreading its values, including through training and information initiatives, so that all persons to whom the document is addressed become aware of its contents

he Code enshrines the principles that inspire the culture, behaviour and way of doing business of the Company and its stakeholders, such as, for example, the principle of legality, impartiality and fairness, respect and development of people, transparency and completeness, confidentiality, quality, diligence and professionalism n this document, oste taliane affirms its commitment to adopting criteria of conduct that exclude conflicts of interest with the Group and promote the ability to make decisions that are consistent with the Company's objectives; criteria that avoid corruption, money laundering and terrorism and that encourage conduct of integrity, while respecting the health and safety of workers and protecting the privacy of all the recipients of the Code Five years after the last update, in 2023, the Code of thics has been revised, attributing a decisive and central role to the eople of oste taliane who, by applying the Group's values in their relations with all stakeholders, contribute to the creation of value Moreover, in line with regulatory developments, sustainability policies, the values enshrined in the ustainability illars, as well as the role that oste taliane plays for the territory and the communities, new guiding principles have been introduced and existing principles have been revised and integrated

n addition to the Code of thics, the Company adopted a Group ntegrated olicy, which reflects and documents the commitment made to all Company's stakeholders, to improve its performance and, at the same time, build and develop trusting relationships with them, as part of a process of generating and sharing value for the Company as well as for the communities in which it operates, with a view to achieving continuity and reconciliation of the related interests

n addition, oste taliane has set up a reporting system and an thics Committee with the task of managing reports and violations n this regard, the Group has introduced the "Guideline on Whistleblowing", a document aimed at regulating the system through which reports can be made by personnel and third parties, with reference to acts or facts referable to violations of internal and/or external regulations, as well as illegal or fraudulent conduct that may determine, directly or indirectly, a financial or image damage for the Company he Group has made a reference portal available to the recipients of the Guidelines, the management of which is entrusted to the Whistleblowing Committee, which also performs the functions of the thics Committee and is responsible for receiving, examining and evaluating the communications received he Whistleblowing Committee envisages assigning to an external professional with high standards of professionalism, honourableness and independence and the permanent presence within the Committee of the Group ustainable Development, Risk and Compliance function/Oversight 231, in order to ensure constant assessment of the relevance of the reports received

oste taliane's internal system for reporting violations is further strengthened by the provisions of the Organisation, Management and Control Model, prepared pursuant to Legislative Decree no 231/01 and approved by the Board of Directors as of October 2022 With reference to the management and monitoring of corporate risks, the Company, as part of its nternal Control and Risk Management ystem ( C GR), has adopted and implemented a management system that, through an organic and integrated vision, is able to provide an unequivocal and effective response to the risks to which the Group is exposed, thus defining an integrated risk management process

he ntegrated Compliance Model adopted by the Company fits into this context, creating operational synergies between the various compliance risk specialists and guaranteeing unified governance in the management of these risks, thanks also to a clear definition of the roles and responsibilities of the players involved in the process his Model has been formalised in the ntegrated Compliance Guideline, drafted in line with best practices and in particular with the provisions of the O 37301:2021 (Compliance Management ystems), becoming a further fundamental pillar for the strengthening of the C GR, with the specific purpose of guarding against the risks of non-compliance to which the Group is exposed, fully implementing the principles of integrity, transparency and legality

Moreover, in line with the Group's ntegrated Compliance rocess and in order to respond to the Group's opening to the international market as a result of significant agreements and the acquisition of foreign companies, oste taliane has defined the Foreign Compliance rocess that disciplines governance aspects and reporting flows to and from the arent Company, as well as the operating procedures at the level of individual Foreign Group Companies for the execution of the various compliance activities

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

ISO 9001 and ISO 37001 certification to the entire perimeter of company's processes and sites Compliance with the U O 37001 standard, relating to anti-corruption management systems, represents an opportunity for oste taliane to strengthen its commitment to fight corruption and contribute to consolidating the principle of legality, with obvious benefits for the protection of the company's reputation and assets n 2023, the commitment made by oste taliane with its stakeholders regarding the certification in accordance with O 9001 and O 37001 "Quality Management and Corruption revention ystem" to the entire perimeter of the company's processes and sites (approximately 16,000 sites) was achieved n particular, the activities carried out have made it possible, in line with the extension initiatives of previous years, to maintain the ntegrated Quality and Anti-Corruption Certification covering the entire oste taliane perimeter With regard to Group companies, all certifications obtained, as of 2019, by the companies oste Vita, oste ay, Banco osta Fondi GR, DA xpress Courier, oste Assicura, G and ostel were confirmed

ISO 37301 and ISO 37002 certifications

O 37301 "Compliance management systems - Requirements with guidance for use" governs the elements necessary for an organisation to develop, implement, maintain and improve an effective Compliance Management ystem, focussing on the importance of spreading a culture of compliance within the organisation that contributes to the pursuit of sustainable success

oste taliane - the first company in taly to obtain, in 2022, this certification for the management of ntegrated Compliance to oversee the design, development and delivery processes of ostal, Financial and Logistics ervices in the areas of administrative, accounting and fiscal responsibility - maintained compliance with this certification also in 2023

Furthermore, again in 2023, oste taliane maintained the certification of conformity with the O 37002 "Whistleblowing" standard, an international standard which aims to provide a complete guide to help organisations define, develop, implement and effectively maintain a Management ystem on the process of receiving and managing reports

As evidence of oste taliane's commitment to disseminating the principles of integrity, preventing corruption and ensuring regulatory compliance, the Company adopted a Group-wide Competition and Consumer rotection Compliance programme and drew up the "Guideline on Competition and Consumer rotection Compliance", which is the cornerstone of the programme

he document provides indications on the regulations for the protection of competition and the consumer and defines the rules of conduct that corporate bodies, executives, employees and all those who work to achieve the Group's purpose and objectives must observe n particular, the objectives set out in said document concern: i) ensuring compliance with competition and consumer protection rules, of which no violation is tolerated; ii) strengthening awareness and disseminating knowledge about the importance of competition and consumer protection regulations; iii) consolidating an operating and control environment that mitigates the risk of commission of antitrust and anti-competitive offences as well as violation of consumer protection regulations; defining a guide to prevent actions, behaviours and omissions that violate competition and consumer protection regulations, and outline monitoring tools to identify any violations

Poste Italiane and Guardia di Finanza together to ensure legality and transparency

he historic collaboration with Guardia di Finanza (Finance olice) and the signed protocol provide even more effective and up-to-date tools to counter any abuse and make a concrete contribution to the country's development

he Memorandum of Understanding with Guardia di Finanza consolidates the entrenchment of company standards and rules in processes, through the increasingly widespread dissemination of the principles of legality and transparency in the market and the prevention of financial offences n particular, within the framework of the rotocol, the shared objectives are the fight against tax evasion, avoidance and fraud, offences relating to public expenditure, economic and financial crime, money laundering, counterfeiting and fraud concerning payment systems he rotocol also stipulates that oste taliane shall assist in the work of prevention and law enforcement by sharing with Guardia di Finanza its wealth of information against unlawful acts in areas of institutional interest carried out also by exploiting technological and means Under the agreement, oste taliane will make available to Guardia di Finanza the data in the " dentity Check" system, which will be useful for investigations to prevent and repress fraud and any other offence of an economic or financial nature he rotocol also establishes regular meetings to review the progress of the collaboration and share information on new fraud scenarios and initiatives to be implemented

Poste Italiane and Arma dei Carabinieri

Through the Memorandum of Understanding with Arma dei Carabinieri, Poste Italiane consolidates the rooting of company rules and regulations in its processes and strongly reaffirms - internally and externally - the organisation's position on issues of legality, safety at work and training. On the basis of the Protocol with Arma dei Carabinieri, Poste Italiane also relies on the expertise of the Carabinieri to ensure maximum compliance with labour, social security and work safety regulations at construction sites opened for building work at Poste Italiane premises.

Poste Italiane and Polizia di Stato (State Police)

ecurity agreement with the tate olice to guarantee the security of communications and postal services through the repression of offences involving products and production processes of the services offered by the oste taliane Group, surveillance activities in post offices during scheduled payment periods, and the creation of task forces functional to the study of new computer fraud scenarios, in continuity with what the tate olice constantly ensures in all strategic sectors of the country, to protect essential services and the fundamental rights of citizens

A further element in the path undertaken by oste taliane to pursue sustainable success, including through activities aimed at the evolution and streamlining of governance controls and the continuous strengthening of the C GR in compliance with the principles of integrity, transparency and legality, as well as to efficiently and uniformly cope with the growing complexity of the various legislative and regulatory requirements, is the nternal Control ystem over Financial Reporting

n line with the strategic guidelines defined by the Company, the internal control system on financial reporting, through the analysis of risks and the identification of specific control measures, is therefore among the tools useful to contribute to the achievement of the objectives related to the material topic of working with integrity and transparency

he " ystem of nternal Control over Financial Reporting" Guideline (hereinafter also referred to as " C F") defines the rules and methods for establishing and maintaining the oste taliane Group's system of internal control over financial reporting over time, as well as for assessing its effectiveness hese standards and methodologies are consistent with the regulatory provisions and the market main best practices as well as with the nternal Control and Risk Management ystem Guidelines adopted by oste taliane pA and with the Group's ntegrated Risk Management and Compliance processes By adopting such an integrated model, it is possible to ensure synergies between the specialised units of the various compliance areas and to avoid redundancies in the operational activities of risk management models and specific compliance programmes, rationalising processes, optimising the effectiveness and efficiency of control activities, and facilitating the sharing of information between the various second-level functions

n order to prevent and combat fraudulent phenomena, oste taliane carries out verification, assessment and monitoring activities on individuals and counterparties (corporate, financial and asset analyses on companies and exponents, analysis of existing relations with oste taliane) through the identification of all the operational and reputational details necessary to verify the reliability and honourableness of individuals or counterparties Boosting prevention of illegal activities, via integrated analysis of information within and beyond oste taliane, enables detection of direct and indirect relations that highlight possible critical issues he fight against fraudulent phenomena is therefore implemented through a process of continuous monitoring of the degree of exposure to the risk of fraud and risk factors, through the collection and analysis of reports and indications of potential wrongdoing, the review of processes and

the adoption of adequate and increasingly rigorous measures of governance and control aimed at preventing fraud

n line with the provisions of the Corporate ustainability Directive, oste taliane is strengthening its internal control system by establishing an internal process capable of integrating financial information, operational data and sustainability information in order to ensure the reliability of internal and external sustainability reporting, adequately supporting the decision-making processes of all categories of stakeholders

During 2023, the fraud prevention management process was further strengthened through an integrated anti-fraud system n particular, the ntegrated Anti-fraud latform ( AF) is operational, an innovative fraud prevention system that includes all digital financial products and services of: On U e-money, e-commerce and digital banking, based on predictive analytical models and enabling - in real time in pre-authorisation mode (as required by the Regulations) - the monitoring of transactions ordered by customers his platform includes the implementation of a single behavioural prevention/detection machine learning solution for all channels, and the subsequent start of the migration of all ayment Cards to the new ntegrated Anti-fraud latform ( AF) The new Integrated Anti-fraud Platform (PIAF)

On 21 March 2023, the Fraud revention Centre was inaugurated, a centre that monitors 24 hours a day the security of transactions carried out in the more than 12,700 ost Offices across the country and online, through payment cards, e-commerce transactions and those of oste Vita's insurance business Fraud Prevention

Centre

he centre employs more than 100 specialists with long experience in the field of financial and cyber security, together with young graduates selected from top talian universities n support of the specialists who govern the entire control process, from prevention to the management of suspicious transactions, the Centre adopts the most advanced technologies in Fraud Management and Fraud ntelligence to further raise the level of security of the financial activities of the entire Group and strengthen the tools to protect citizens against offences and fraud

he Centre is an example of oste taliane's innovative capacity also in the field of security because it adopts a very effective integrated operating model that has increased its prevention capacity in the face of the continuous increase in the number of physical and digital transactions each year between oste taliane's different business areas

With the aim of disseminating the Group's ethical principles, oste taliane invests in training and information activities for

its employees, offering seminars and courses on transparency, integrity and anti-corruption, communicating its principles to stakeholders through the dissemination of the Code of thics, olicies and Guidelines raining and communication constitute, in fact, a continuum of coordinated actions aimed at supporting the dissemination of the culture of compliance and legality in line with the roles, responsibilities and levels of risk exposure of each individual, including through adequate top management commitment

Legality rating

n 2023, oste taliane confirmed its legality rating, receiving the highest three star rating from the AGCM, which is awarded to just 8.5% of companies

Fiscal transparency policies

n January 2020, both oste taliane and its subsidiary, oste Vita, were admitted to the Collaborative Compliance regime with the tax authorities, an award granted following a positive assessment by the tax authorities of the system for identifying, managing, controlling and mitigating tax risk his institution, provided for by the Delegated Law for the reform of the talian tax system (Law 23/2014) and introduced in taly by Legislative Decree no 128/2015, allows for a relationship to be

established with the financial authorities, one built on trust and collaboration he goal is to increase the level of certainty on significant tax issues by creating an open line of communication so that issues that might give rise to risky tax scenarios are addressed in advance oste taliane's admission to Collaborative Compliance consolidates the path inspired by the values of ethics, integrity and transparency also in the financial and fiscal area

oste taliane ax Control Risk Framework

oste taliane has developed its own tax risk management and control system, which, as part of the wider nternal Control and Risk Management ystem ( C GR), meets the following requirements in line with legislation and best practices:

• the ax trategy in which the Group has defined its objectives and the approach adopted in managing the tax variable he ax trategy is arranged as a set of principles and rules aimed at promoting dissemination of the values of honesty, fairness and compliance with tax regulations, thereby encouraging the development of collaborative and transparent conduct towards the tax authorities and third parties, in order to minimise any substantial impact in terms of either tax or reputational risk;
• adequate processes, procedures and tools for the detection, measurement and management of tax risks, as well as for monitoring the tax risk control system;
• a system of delegated powers, roles and responsibilities regarding the processes of detecting, measuring, managing and monitoring tax risk, defined within a specific Guideline, as well as detailed in the relative operating procedures and in the tax risk map (i e ax Risk Assessment);
• adaptation to major changes affecting the Company, including changes in tax legislation;
• sending an annual report to the management bodies containing the results of the checks carried out and any action plans to be implemented to remedy the shortcomings that emerged from the monitoring his report is also sent to the Revenue Agency for evaluation of the ax Control Framework

n line with its sustainability strategy and with the values set out , in the Group's Code of thics, the oste taliane Group has always managed taxation in full compliance with the principles of honesty, fairness and compliance with tax regulations, characterised by cooperative and transparent conduct towards tax authorities and third parties, in order to minimise any material impact in terms of tax or reputational risk o this end, the Group has adopted a ax trategy156F ¹⁵⁷ within which the Company has defined its objectives:

• manage the tax variable by protecting the interests of all stakeholders, including the government, shareholders, employees and the community in which it operates, including at local level, being aware that tax revenue is one of the main sources of contribution to the economic and social development of the country;
• always operate in compliance with tax regulations with regard to both the letter of the rules and the underlying rationale, monitoring and overseeing regulatory changes, including through continuous dialogue with the relevant institutions at national and international level;
• carry out transactions in application of the arm's length principle and applying transfer pricing at arm's length;
• make decisions on tax matters in line with national and international best practices and with the guidelines dictated by sector bodies, as well as in line with its own strategic objectives and risk appetite;
• promote professional diligence in the management of tax-relevant activities and processes, and ensure that the related procedures are appropriate;
• ensure adequate technical training for all employees involved in the management of tax-related obligations and activities;
• establish complete and accurate information flows to management bodies and tax authorities;

¹⁵⁷ oste taliane p A 's ax trategy is available on the Group's website at the following link www posteitaliane it/it/strategia-fiscale html

• encourage the development of constructive, professional and transparent relations with the ax Authorities, based on the concepts of integrity, collaboration and mutual trust

he tax risk management and control system implemented by the Group requires top management to be kept constantly informed of the tax consequences of all strategic and operational business transactions, both planned and to be carried out, thereby ensuring that every decision taken on tax matters is consistent with oste taliane's tax strategy and that the ax function is involved in the preliminary assessment of the tax impact of such transactions he ax function is divided into eight areas that are assigned distinct roles and responsibilities and are: ax lanning and Business upport, ax Risk

The Collaborative Compliance Regime

admitted oste taliane and its subsidiary oste Vita with the tax authorities

Management, rocesses and rocedures, Regulations, tudies and ax Replacement, Business ncome, ndirect axes, Local axes and Litigation, VA and Compliances and Financial ax Compliances n detail, the ax function provides support to top management, as well as to the functions concerned, for the preliminary analysis of tax aspects arising from strategic, business and financial transactions

oste taliane pA's Board of Directors, subject to the opinion of the Control and Risk Committee, is responsible for assessing the adequacy and effectiveness of the internal control and risk management system o this end, with specific reference to the tax risk management and control system, the Board of Directors, supported by adequate preparatory work by the Control and Risk Committee, examines at least once a year the report prepared by the head of the ax function containing the results of the periodic review of this system

oste taliane also coordinates with Group companies to ensure that they operate in compliance with current tax legislation and in line with the Group's risk management and control system

As previously stated when it entered the Collaborative Compliance regime, the oste taliane Group is committed to establishing relations with tax authorities that are based on the utmost transparency and cooperation, undertaking to:

• communicate in a clear and transparent manner to the Revenue Agency any changes in the tax strategy, in the medium/long-term tax planning and the possible risks related to the most relevant transactions;
• provide correct, accurate and timely information and respond promptly to questions and requests for information received by the Revenue Agency;
• resolve any problems in a timely manner prior to the filing of tax returns, and, if differences subsequently arise, work out an agreement with the Revenue Agency to resolve them

n addition, for risks that arise during the interpretation of a regulation, either before the regulation in question is actually applied or afterwards, the Company:

• participates in working groups with the relevant institutions, both national (e g Assonime, Confindustria, AB , Assofondi, Ania) and international (e g O CD, uropean Commission), and carries out in-depth internal investigations, if necessary initiating discussions with external consultants, in order to arrive at a shared interpretative thesis;
• proceeds, if it perceives that margins of uncertainty remain in relation to potentially contestable issues or issues of doubtful interpretation, to an informal discussion with the Revenue Agency and/or, in cases of particular relevance that require an official formalisation of the interpretative thesis, avails itself of the use of the instrument of prior appeal (so-

called ax ruling); these procedures are followed in cases of complex corporate, financial or commercial transactions with tax-relevant outcomes, in particular, if they fall under aggressive tax transactions

Following the oste taliane Group's entry into the Collaborative Compliance regime, the Group has adopted a wellstructured set of procedures to govern the management of tax risk, including the activities, controls, roles and responsibilities defined within the processes

oste taliane has also made it the responsibility of the ax function to monitor updates to the relevant legislation More specifically, the task of the Regulations, tudies and ax ubstitution ( ) unit, which is part of the ax function, is to: monitor the evolution of the national, U and international tax system, in order to propose measures to guarantee the interests of the Group and the optimisation of operating obligations; guarantee the study, interpretation and dissemination of tax regulations, assessing their impact on the Company and the Group in collaboration with internal functions/companies o this end, the unit, thanks to the continuous exchange with the operational structures of reference, receives suggestions and input that give greater consistency to the actions implemented in this area As part of the monitoring of regulations, the rocesses and rocedures unit, in conjunction with other internal functions, analyses the impacts on processes and systems deriving from changes in tax regulations, defining the related adaptation plans Finally, the ax Risk Management unit monitors, with reference to the compliance plans developed by the rocesses and rocedures unit, the proper execution of controls and related activities

Tax Risk Assessment

During the year 2023, the ax Risk Assessment was updated, which entailed a review of certain of oste taliane's tax risks, also in consideration of the regulatory updates that have taken place, both in terms of existing risks and their assessment, as well as the updating of certain activities and the related control measures n general, the review of the ax Risk Assessment covered the following points:

• •integration/modification of tax risks due to changes in tax legislation, the review of risks with a view to continuous improvement;
• update of the qualitative/quantitative assessment of tax risks, where appropriate, mainly following the outcomes of monitoring;
• update of the activities and related control measures identified to mitigate tax risks, where necessary, depending on the evolution of tax regulations, organisational and process changes that occurred during the period, alignment to the detected operations and/or any opportunities for improvement in the design of controls, detected during testing activities, or with a view to optimisation

During 2023, the controls to guard against the risks envisaged within the framework of oste taliane's tax risk management and control system were monitored, in accordance with what was defined in the 2021-2023 Monitoring lan and in line with the methodology adopted

Communication and training on tax issues

n accordance with what stated in the ax trategy and aware of the fundamental role played by training in an area such as the tax area characterised by rapid change, the ax function trains and supports all personnel involved in the management of tax-related activities, not limiting itself to resources specifically dedicated to tax matters, in order to ensure that all personnel have the right skills and experience to fulfil their responsibilities

During 2023, the courses delivered by the ax function covered the following topics:

• tax treatment under the procurement code of registration tax and stamp duty in respect of framework contracts and application contracts and/or delivery notes;
• tax impacts of settlement deeds;
• general principles and novelties introduced by the implification Decree;
• functionalities and usage of the tax risk management platform (GRC Archer)

Legality and incorporation of G in the procurement process

oste taliane manages its supply chain responsibly, aiming to certify the sustainability, functionality and traceability of the materials purchased o ensure this, in addition to complying with current regulations and company directives, the oste taliane Group is committed to basing its purchasing processes on pre-contractual and contractual relations based on the values of legality and transparency Focusing on compliance with agreements, payment terms and deadlines, the Company includes in its supplier network those who demonstrate appropriate quality characteristics and are committed to protecting workers and complying with environmental standards

he oste taliane Group guarantees each supplier the possibility of competing in award procedures, ensuring fairness and avoiding preferential treatment uppliers involved are obliged to comply with the U and talian legislation on competition, and shall refrain from anti-competitive or unethical conduct that is contrary to the rules that safeguard competition n addition, the Company requires suppliers and any subcontractors, as well as their partners to formally accept the guiding principles and criteria of conduct outlined in the Code of thics and Group olicies

In selecting suppliers, the Group follows objective and documentable criteria, including those linked to ESG aspects, with the aim of guaranteeing suppliers' loyalty, impartiality, transparency and equal opportunities for collaboration

hrough internal rules, oste taliane regulates the purchasing process for contracts subject to the ublic Contracts Code, and for those which are excluded from the scope of application of the Code itself

With the aim of promoting and strengthening relationships with suppliers, as well as ensuring efficient and integrated management of the supply chain in compliance with the principles of confidentiality, authenticity, competitiveness, integrity and availability in data exchange, purchases are made through the oste rocurement urchasing ortal he ortal is a telematic system dedicated to procurement activities and the management of the upplier Register

he purchasing procedures of the oste taliane Group follow the trend of recent years, characterised by frequent use of competitive procedures aimed at guaranteeing competitive advantages for the Company

he purchasing process considers G issues into account with the aim of favouring sustainable procurement, acting as a vehicle for disseminating the culture of sustainability - understood as the set of the Group's sustainable policies integrated in the company's regulatory system and outlined in the purchasing process itself

Poste Italiane receives the ISO 20400 certification

2023 Annual Report

ince 2021, oste taliane has been among the leading talian economic and production companies qualified in the sustainable management of purchasing processes and supplier relations

he O 20400 certification on ustainable rocurement defines guidelines for integrating sustainability into an organisation's procurement processes

he Group's ustainable Development, Risk and Compliance Function in the Corporate Affairs area is committed to identifying possible elements of risk to ensure compliance with the requirements of reliability and integrity, through the assessment of the corporate, financial and equity profiles of the companies and representatives of the respective relationships with the Company n particular, relationships with suppliers can become sources of strategic and reputational risks he objective of risk management is to reduce the risks deriving from transactions with third parties, ensuring adequate supplier rotation and minimising losses linked to the non-collectability of receivables, thanks to a constant monitoring process o identify direct and indirect relationships prone to critical issues, it is necessary to strengthen the prevention activities of illicit phenomena through an analysis that takes into account internal and external information

Poste Italiane obtains the Recognition of the UN Global Compact Network Italia

he oste taliane Group's adherence to the ideals of the U Global Compact was officially recognised by the U Global Compact taly etwork, which included the Group's example in its osition aper entitled " ustainable supply chain management: between responsibility and opportunity for companies" his document, presented during the exhibition dedicated to Corporate ocial Responsibility (C R) and ocial nnovation, highlights the commitment of various companies, including oste taliane, in managing supply chains with a sustainable perspective, underlining their ability to recognise the opportunities associated with this challenge

Main types of goods and services purchased

Within real estate procurement, in continuity with the previous year, also in 2023 all tenders for the supply of furniture, cleaning services and works included compliance with the Minimum nvironmental Criteria (M C) n particular, the objective of reducing the environmental impact on natural resources and increasing the use of recycled materials was pursued in works tenders o this end, specific reward criteria have been introduced for the use of new materials produced with a certain percentage of recycled content which, at the end of their life cycle, can be subjected to selective dismantling, recycling or reuse For each product receiving a reward score, it was required to present a specific form containing the general description, physical characteristics, brands, environmental labels and certifications attesting to the recyclable or eco-friendly nature of the material

he concessions for catering services at the real estate complexes also respected the principles of Green ublic rocurement (G - Green urchasing of the ublic Administration), ensuring the provision of a corporate catering service with reduced environmental impact, in terms of processes and contents, respecting environmental, economic and social sustainability oste taliane continued to reward the supply of foodstuffs, such as B O, G , DO , sustainable fishing products, etc , in excess of the minimum quantities prescribed by the M C n this context, local suppliers who guarantee certified products are potentially involved in the supply chain of food products for canteens and bars

As regards the supply of electricity for the Group, in 2023, the Group continued with the purchase from the reference market with a percentage of 100% from renewable sources certified with Guarantees of Origin A residual share of the demand was self-generated by proprietary photovoltaic plants, the total number of which in 2023, including installations from previous years and including also the plants built as part of the olis roject, was 308, with a total capacity of approximately 15,753 kWp

oste taliane's main photovoltaic plants include the recent site in alermo, the site at its Rome headquarters, which houses a photovoltaic plant in instantaneous self-consumption mode to produce the energy needed to power, among other things, five electric car charging stations, and the plants in operation in omezia and Melzo

Poste Italiane's Photovoltaic Project Largest photovoltaic plant

in the centre-south of taly inaugurated in alermo

he new photovoltaic plant, which went into operation in alermo in 2023, claims to be the largest in the centre-south of taly, with a production capacity of around 250 homes

he inauguration of the plant allows oste taliane to accelerate its path towards the goal of carbon neutrality by 2030

he Group plans to construct 1,400 photovoltaic systems by 2026, which will cover 15% of the Company's energy needs Of these, around 300 medium to large ones, such as the one inaugurated in alermo, capable of meeting the energy needs of 250 homes, will be built by 2024

As part of the mart Building roject, aimed at monitoring consumption and environmental parameters, as well as the automated remote management of systems, with particular focus on lighting, heating and cooling, data was acquired on energy consumption and the main environmental parameters such as temperature, humidity and lighting his system enables significant energy efficiency and emission reduction, thanks to the ability to remotely manage and operate the systems, as well as adjust and optimise their operating set points

n the course of 2023, a total of approximately 355 new installations were carried out, also taking into account the 24 installations under the olis roject and the 9 related to

+355

new interventions of monitoring systems for consumption and environmental parameters

the so-called "improved offer" of the "Multiservice" contracts hese interventions brought the total number of locations certified on the B M platform to 1,976, including those involved in OL projects and Multiservice contracts, which totalled 2,009

fforts are also continuing to build charging points that will become operational within the next three years on roads and in city centres, with more than 21,000 charging stations to be installed imilarly, as part of the olis roject, the commitment continues to the creation of a charging infrastructure across the entire national territory continues, with 5,000 columns that can be used by the community every day and at any time

With regard to logistics purchases, within the scope of the maintenance of the operating fleet owned by oste taliane, in order to ensure the maximum efficiency and operability of the vehicles used for deliveries, as well as the safety conditions of employees, an U tender was carried out for the activation of the fleet management service for oste taliane's own vehicles, including tricycles and motorbikes, both thermal and electric, distributed throughout taly

With reference to plant and equipment maintenance, some of the main certifications were introduced ( O 14001:2015 - " nvironmental Management ystems", O 45001 - "Occupational Health and afety Management ystems", O 37001:2016 - "Management ystems for the revention of Corruption"- U O 14064:2019 Carbon Footprint of the Organisation), as well as the use of environmentally sustainable cleaning/sanitisation products (U O 14024 or equivalent) and the presence of a corporate olicy on diversity, inclusion and sustainable procurement With regard to the airport handling service at the international airports of Milan Malpensa and Milan Linate, in order to maintain operational continuity inherent to the handling of postal dispatches and the support and assistance activities for controls on shipments, a tender was carried out that confirms, in the G area, the adoption of some of the main certifications ( O 14001:2015 - " nvironmental Management ystems" and O 45001 - "Occupational Health and afety Management ystems") and introduces the adoption of its own code of ethics For the transport service, on the other hand, the tenders published in the year 2023 also confirm, in the G area, the adoption of some of the main certifications ( O 14001:2015 - " nvironmental Management ystems" and O 45001 - "Occupational Health and afety Management ystems"), as well as the adoption of its own code of ethics here are also award criteria for the environmental approval class of the vehicles to be applied on the transport services covered by the contract

he main supplies using plastics (e g postal seals, courier bags and packaging films) were characterised by the reduction of the raw material required, as well as the use of CR ( ost-Consumer Recycled) plastics, while maintaining the physical characteristics of the products necessary for the provision of services With regard to supplies for ostel printing production sites, all competitive comparisons concerning the supply of paper and envelopes for mass printing included the requirement of F C (Forest tewardship Council) product certification, which guarantees proper forest management from both an environmental and a social point of view and the traceability of derived products Almost all competitive comparisons involving printing supplies and services for Commercial rinting & Direct Marketing also included the requirement of F C-COC certification for participating economic operators to guarantee the continuity of the supply/service chain n the second half of 2023, in the best-price competition for the supply of roll paper for printing, the participation requirement concerning the scope of Governance was introduced

n the context of the ongoing competitive tendering procedure, concerning the services of transport, escort, counting, sorting, authentication and custody of money and/or valuables at the ost Offices of oste taliane and the offices of DA xpress Courier, a bonus is envisaged for economic operators able to provide uniforms with sustainable characteristics regarding the chemical substances they contain (ecological quality conformity ecolabel/ O 14024/O KO X), to the special security guards employed in the services

n the area of C procurement, the computer hardware necessary for the implementation of the A Ms within the olis roject, digital shop windows and virtual counter kiosks, were purchased in compliance with the principles and specific obligations of the RR / C with regard to not causing significant harm to environmental objectives (so-called "Do o ignificant Harm" - D H) n addition, the requirements for servers and storage systems were acquired in accordance with the latest criteria for energy efficiency, reduced environmental impact and increased reliability n particular, for the

power supplies of the aforementioned equipment, minimum technical specifications have been defined in the technical tender specifications that allow for a reduction in energy waste, decreasing electricity consumption and the production of heat to be dissipated, resulting in less need for air conditioning in the premises where the equipment is installed (data centre) hese technical features can also achieve direct savings in energy expenditure and a reduction in CO² emissions

With reference to the sector-specific characteristics of its supply chain, there are three prevailing types of supply chains with respect to real estate purchases: those characterised by labour-intensive (cleaning, maintenance and porterage sector); those for works, building supplies and waste disposal; and those for intellectual services, i e professional engineering and architectural services

With respect to logistics procurement, on the other hand, the target market is very distinct by product area n particular, the supply concerns the following types:

• transport services, which are entrusted to small and medium-sized enterprises registered in the upplier Register in the "local network transport service" category, and which manage the transport network of postal products, linking orting Centres, Distribution Centres and ost Offices, including the service of emptying mailboxes, within the individual Logistics Macro Areas;
• fleet rental, characterised by a concentration of operators in the Long erm Rental sector;

automation service for the sorting of objects (letters/correspondence, parcels, packages), which is influenced by the growing demand for parcel automation (closed loop systems) and the shrinking mail (linear systems)

upplier qualification procedures

n accordance with current legislation, the oste taliane Group established its own upplier Register in 2006 with the aim of simplifying the awarding procedures and guaranteeing homogeneity among the selected subjects, in every product sector, as well as transparency towards the market

he Regulation of the upplier Register and the Regulation of the Qualification ystem, which respectively govern the Qualification ystem in the upplier Register and the qualification system and procedure for each of the product categories, regulate the formation and management of the Register For each product category, access to the Register is possible at any time by submitting the application and the required documentation

o be qualified in the Register, all suppliers must meet general requirements, such as moral quality and professional suitability, and special requirements, including those of an economic-financial and technical-organisational nature hese requisites aim at consolidating the governance of the Group's purchasing process

n the context of relationships with suppliers of works, services and supplies, oste taliane's contractual clauses are constantly updated based on new regulatory provisions and the specific needs communicated by the internal customer his contributes to the acceleration of contractual time and ensures adequate governance of the most relevant issues

oste taliane Group ensures a high level of disclosure of its procurement process, in conformity with the principles of transparency n fact, pursuant to Law no 190/2012 entitled " rovisions for the prevention and repression of corruption and illegality in the public administration", it regularly and voluntarily publishes information on both the purchasing procedures indicated by law and those not explicitly mentioned in the regulatory provisions o facilitate access to this information, the "Open and transparent contracts" portal has been created and can be consulted on the Company's website

2023 Annual Report

Poste Italiane Group Report on Operations at 31 December 2023

election of suppliers

he integration of environmental, social and governance aspects into oste taliane's purchasing procedures implies that suppliers undergo sustainability audits to verify that they meet specific requirements

90.5%

of suppliers have an ISO 14001 or EMAS certified environmental management system

he oste taliane Group pays particular attention to the G aspects linked to the management of the supply chain, aware that establishing transparent and lasting

relationships with suppliers, as well as paying maximum attention to quality, respect for the environment, safety and social implications in the procurement process, can contribute to the public interest of the entire country system157F ¹⁵⁸ and the continuous improvement of the service offered to its customers

For this reason, there are specific environmental, social and governance criteria in

the supplier selection process, in the participation requirements, in the evaluation parameters of the technical offer and/or in the contractual conditions, of the tender procedures carried out during the year n particular, the Group provides for specific contractual clauses related to sustainability issues (e g human rights, health and safety at work, ethics, etc ) in its relations with its suppliers

Confirming the oste taliane Group's constant attention to these issues, there were significant increases in the number of tenders carried out on the basis of environmental, social and governance criteria in 2023

pecifically, 87 9% of suppliers, compared to 84 5% in 2021, were selected in accordance with specific social standards during 2023 aid indicator, when considered net of tenders without a technical offer (as they were awarded to the lowest price), certifies that almost all tenders launched require social criteria (> 98%)

On the other hand, 90 5% of the tenders issued in 2023, compared to 83 4% in 2021, meet certain environmental performance standards Again, the percentage of tenders selected on the basis of these criteria would become greater than 99% if those without a technical offer were excluded from the calculation

he Group maintained the governance indicator, introduced in 2021, by requiring specific qualification and evaluation principles from suppliers in the technical offer, in order to refine the G model in the procurement process An analysis of the tender procedures with amounts exceeding the community thresholds highlights the adoption of specific governance criteria in the qualification, in the evaluation criteria (e g O 37001, Legality Rating, Code of thics/Conduct, olicy etc ) and in the contractual clauses

n addition, as part of the strategic objective to define G parameters in participation requirements and tender evaluation criteria, the first phase on the definition of G parameters in O V tendering procedures was completed in 2023, with the definition of +60 k- G validated, adoptable both as participation requirements and tender evaluation criteria, in relation to the maturity of the relevant product sector he mapping of the Minimum nvironmental Criteria into requirements and criteria was also completed, and a percentage of 96% of O V tenders covered by k- G was achieved n addition, the activities conducted to support the achievement of the target included: the implementation of the G-box (expansion of the offer of applicable keys); the revision of procurement procedures with G grafts; the implementation of an impulse plan for material substitution (changeover); and the implementation of the green check model during the tender construction phase

+7.1%

of tenders carried out on the basis of environmental criteria compared to 2021

+3.4%

of tenders carried out on the basis of social criteria compared to 2021

¹⁵⁸ n 2023, there are zero instances of supplier non-compliance with environmental and labour rights policies

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

+45.7%

of tenders carried out on the basis of governance criteria compared to 2021

Of the tenders issued during the year, 78 9% took governance aspects into account, compared to 33% in 2021 By

eliminating tenders without technical offers, the same indicator shows that almost all tenders launched require governance criteria (>98%)

he reporting scope refers to the current special sector procurement thresholds, conventionally extended to non-code tenders, for the lowest price ( BB) and economically most advantageous (O V) award criteria

he ustainable rocurement function is responsible for the timely monitoring of G issues within its supply chain management his function ensures a constant integration of sustainability issues within tender processes and G criteria in the technical evaluation of offers By defining highly relevant projects, such as logistics, the decarbonisation of properties, consumables, and promoting attention to the use of resources, investment plans and technological development, together with the green implementation of the most traditional, the goal of sustainable change can be achieved

he growing trend of nvironmental, ocial and Governance indicators is associated with the significant increase in the G impact of the technical offer n this regard, more than 78% of the tenders launched are G, a percentage that rises to 97% for the perimeter of tenders launched with technical offers, with the stable presence of criteria related to nvironmental Management and Occupational Health and afety (82%), Attention to eople (56%) and ntegrity and ransparency (79%) oste taliane, by promoting the adoption of G criteria in the selection, assessment and monitoring of suppliers, as well as mitigating potential G risks, is committed to improving the effectiveness of business processes and competitiveness Consistent with previous years and with the aim of combining sustainability through the reduction of environmental impacts and rationalisation of costs, the oste taliane Group has integrated the criteria envisaged by the Green ublic rocurement by implementing, when required, the indications on the Minimum nvironmental Criteria (M C), established with specific Ministerial Decrees Furthermore, the G model in the Group's procurement process was implemented with the introduction of specific ntegrity and ransparency (Governance) criteria

Poste Italiane's Vendor Rating system

he Vendor Rating (VR) supplier assessment system, implemented by oste taliane, was conceived in order to provide the Company with a system for measuring supplier performance and assessing them in an G context his system plays an essential role within the supply chain, having as its main objective the definition and implementation of a scoring model that allows an accurate assessment of suppliers in relation to quality, safety, punctuality and environmental respect of services offered, as well as commercial conduct and correctness of billing he Vendor Rating, therefore, allows oste taliane to make considered choices in the acquisition of goods and services All suppliers who had contractual relationships with oste taliane during the reporting period, including framework agreements and spot tenders, were subject to evaluation through this tool

n the supplier qualification phase, in order to monitor their performance, oste taliane implemented a rating methodology characterised by the adoption of a customised approach, which resulted in the creation of an ad hoc questionnaire for each supplier (100% of qualified suppliers) he model is risk-based, allowing for the assessment of how each provider manages the G risks identified as relevant according to the company's sector and size As far as the sector is concerned, suppliers are classified by the oste taliane Group within the 99 recognised A CO sectors ince each sector has specific risks

100%

of suppliers classified by ATECO sector and size

depending on the nature, the companies belonging to it are also affected by them and, consequently, are evaluated according to them oste taliane used internationally recognised external references to identify the various types of risk,

identifying around 40 main ones (environmental, social and socioenvironmental) For each risk considered relevant to the sector in question, an

evaluation of the companies is carried out considering the specific safeguards adopted to mitigate the negative impact of the individual risks examined n relation to the size of the organisation, defined by the uropean Commission as small, medium or large, the

Specific ESG Ratings

assigned for the selection of suppliers on the basis of the controls used to manage the various relevant

risks

Company has indicated 8 main Governance risks potentially relevant for the suppliers subjected to assessment

ubsequently, the information obtained is subjected to analysis and processing through the definition of an G scoring process which provides, for each aspect analysed, the attribution of a rating for each relevant risk and a total G rating

hese elements give the model the following advantages:

• assessment focused on the supplier's relevant G risks, through the use of specific questionnaires for each economic sector, adopting a risk-based approach;
• solidity of the analysis ensured by the use of a quantitative algorithm that guarantees the attribution of a rating extremely representative of the level of risk coverage guaranteed by the supplier;
• risk visibility on different levels, with the opportunity to analyse G risk at the aggregate level, at the level of single / /G aspects, and at the level of individual risks;

accurate identification of areas for improvement on the basis of the rating given to the way individual risks are managed;

facilitated completion of the questionnaire, characterised by multiple closed answers;

reliability and recognisability of the proposed methodology, based on internationally recognised studies that are affirmed best practices in relation to the area under analysis;

marketability of the proposed model by the oste taliane Group, which may consider making it a proprietary model and offering it on the market once it has been registered with the appropriate trademark

n order to raise awareness among suppliers and support them on a path of sustainable growth, oste taliane is committed to gradually introducing, over the years, environmental, social and governance criteria into its tender procedures his initiative guarantees a constant expansion of the required areas, coverage and weight of G criteria on the tender score

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023

MAIN RELATED TYPES OF CAPITAL

taff training and development

For oste taliane, the role of human capital is particularly important, being a distinctive and essential element for the achievement of the company objectives and the creation of competitive advantage recisely for this reason, the Group actively promotes and invests in training courses aimed at preparing staff to effectively meet the challenges and needs of a constantly changing business context n particular, the role of training within the Company is a fundamental aspect of the process of continuous development of personal and professional skills, targeted at each person in the Group With this in mind, oste taliane, through the adoption of innovative formats and knowledge sharing tools, is constantly striving to improve the learning experience in order to simplify access to training content and ensure continuity of learning

he Company, in accordance with the principles expressed in the Code of thics, expresses its commitment to recognising and valuing the individual contribution of each member of the company population, committing itself to guaranteeing equal opportunities in career paths for all employees, without making distinctions of any kind

The Group considers training an essential lever for achieving competitive advantage in the market, constantly promoting its innovativeness and continuity

n line with the trategic lan, the training initiatives are part of a much broader project, which, in accordance with company principles and the demands of the market, customers and regulations, provides for the provision of approximately 25 million hours of training in the five-year period 2020-2024 o ensure regular and effective carrying out of training activities, in 2015, the Company established the Corporate University, identified as a Human Resources function which, through the organisation in various Academies, provides training on different business contents, depending skills to develop he Corporate University aims to define and ensure the carrying out of the training process in its entirety (including operational training) n particular, the " raining and Operational raining" rocedure, aimed at all company functions and all staff, describes the Group's operational training model, explaining the operating mechanisms and organisational responsibilities regarding training and operational training activities he guidelines of the rocedure aim to ensure the effectiveness, efficiency and conformity of the expected results, through the implementation of relevant organisational and control measures, also in compliance with Legislative Decree no 231/01

n 2023, the training plan, in addition to a strong focus on the role skills needed to support new business models and new service models, focused on the development of the transversal skills needed to operate in an ever-changing context and to steer behaviour towards sustainability, innovation and continuous improvement

n 2023, the learning experience improved through the introduction of new innovative formats, but also through the continuous updating of the e-learning platform, which allows simplified access to all training content, and the adoption of digital learning tools used for specific training objectives

n fact, the focus on digital learning technologies for the continuous improvement of the learning experience remains constant, as part of the process of continuous evolution that the Corporate University is committed to pursuing in terms of content, teaching methods and tools with the aim of implementing continuous training programmes and using innovative learning methodologies to support and develop people's skills Of particular note during the year was the commitment to the topic of accessibility and inclusion For this purpose, a specific online format was developed that includes new navigation and interface features to facilitate the use of courses by people who may have varying degrees of visual and hearing impairment and reduced mobility

A total of approximately 6 5 million hours of training were provided during 2023 o respond to the specific training needs of the various businesses of the Group, targeted training courses have been developed, dedicated to specific targets (e g tellers, postmen, customer service representatives, salespeople) in order to provide, consolidate and develop technical

6.5 mln

hours of training in 2023

and specialist skills specific to each role ransversal training courses were also provided on topics focused on the adoption of cultural tools and models aimed at all Company employees, without distinction of specific role Finally, through individual training courses, especially dedicated to developing resources, skills useful for more complex roles, such as customer relationship management, were

strengthened, promoting the adoption of responsible marketing and sales practices in order to prevent any disrespectful or discriminatory treatment of customers

Campus Italia with Universities oste taliane n 2023, oste taliane launched the "Campus talia" project, an initiative that stems from the alliance with the country's leading universities and destined to give rise to the first five development and training centres for Group employees he Company has entered into around 50 agreements with the best talian universities and training institutions, with the aim of developing these partnerships to the maximum in order to create advanced technological and training spaces

for the development of its people he new training centres are planned in the cities of Milan, Venice, Bologna, Rome, aples and alermo, so that oste taliane's people can be deployed throughout the country

"Campus talia" is intended to be a project of excellence, through which Group employees will have the opportunity to develop new skills and obtain certifications Aware that valuing people is one of oste taliane's strategic pillars, the project will help make the Company even more attractive on the labour market

hanks to the involvement of various organizational functions, the Corporate University plays a central role in the training process and ensures the governance of the entire training process itself his is structured in five Academies, each dedicated to specific skills hree Academies focus on vertical business areas: the Commercial Finance and Customer upport Academy oversees the development of financial and insurance skills of the financial advisor and salesperson networks on the basis of sector regulations ( MA/ VA ), as well as customer relationship skills; the ostal, Logistics and C Academy oversees the development of skills of the delivery and logistics network, as well as those of the C professional family; the Corporate and Faculty Academy, on the other hand, is dedicated to the development of skills linked to the professionalism of corporate functions, as well as managing oste taliane's internal teachers, ensuring their training and certification of skills n the Faculty area, efforts continue to develop and maintain the skills of in-house teachers, a valuable figure who provide their know-how and experience by dedicating themselves to the development of technical or operational skills n addition, the training course of the oste taliane Coaches' chool aimed at enriching their methodological knowledge and increasing their role awareness, through individual supervision meetings with certified coaches, continues Coaches were engaged in coaching courses aimed at high-potential resources and personnel returning to service after a long absence

he other two Academies, on the other hand, focus on transversal core competencies pecifically, the Managerial Academy oversees the development of managerial skills for key roles, professionals and talents who will fill more complex roles, while the Digital Academy and nnovation ensures the design and development of online courses and the reengineering of learning processes and tools Finally, a lanning and Governance function that deals with the consolidation of the training plan and the periodic monitoring and control of progress Furthermore, with the aim of enhancing the synergies of tools, methodologies and skills, starting from May 2022, the ducation initiative merged into the Corporate University, which aims to promote campaigns, initiatives and opportunities for discussion aimed at encouraging dialogue with citizens on issues of social and inclusive value

he training process begins with the drafting of the annual raining lan, which takes into account the training needs identified by the various company lines consistently with the objectives of the trategic lan Listening to and collecting training needs represents, in fact, the first step in creating paths and planning interventions aimed at updating, qualifying for the role and consolidating skills for the entire company population, from resources newly added to managers n addition, the HR Business artner functions are also involved through the figures of the training contact persons and the resources working in cross-services in the Human Resources macro-area

o evaluate the achievement of the established training objectives, the Group has implemented a monitoring and control system shared periodically with the business lines, which includes:

• a general K system monitored on a monthly basis through the verification of:
  • hours of training provided (by function/area);
  • percentage of coverage;
  • value of perceived quality;
  • advancement of external costs;
  • recovery progress from Fondi;
• a specific control system for the individual training initiatives that evaluates:
  • effectiveness, i e the ability to achieve the training objectives of the individual course through the pass rate of the end-of-course test;
  • participation rate;
• specifically for compliance training, there are additional periodic reporting and monitoring systems for the control functions n particular, on the progress of the training plan in terms of hours, participation, intervention backbones and trends, the Company has provided monitoring of utilisation for specific training campaigns being delivered

n addition, the Company planned periodic audits conducted by internal/external control functions (internal audits/certifying bodies/supervisory authorities) that assess the model adopted

o support the monitoring system, oste taliane uses a number of additional tools such as surveys or focus groups in order to improve the design of the initiative and assess the effectiveness of the participants he Company pays particular attention to the role of the means of communication, such as the company website, oste ews, interviews with G oste, to raise awareness among potential employees of the importance of the training courses offered Finally, through longterm partnerships with leading business schools and suppliers, the Group has made available constantly updated training content that optimises the procurement process

100%

of employees covered by People Analytics practices o improve systems, processes and strategies, oste taliane is oriented towards achieving sustainable business success, using eople Analytics practices, also known as HR alent or workforce analytics , i e the practice of collecting and analysing organisational data of human resources through the application of statistics and other data techniques n particular, the Group used eople Analytics practices in 2023 for the following purposes:

• a) strategic workforce planning through the collection of the needs of the various business lines combined with the management levers available (market recruitment, transformations from part-time to full-time, mobility flows, etc ) with the aim of defining the medium-term workforce frameworks consistent with the requests he Group anticipates and guides workforce dynamics through eople Analytics tools, considering in particular the use of incentive redundancies as a low-impact lever for controlling surpluses and directing prospective trends in resource deployment eople Analytics provides the possibility to analyse the impact of business projects and to identify and manage surpluses via "Web ers ensionamento" his system makes it possible to identify employees close to retirement and to manage the related exit process end-to-end, directly through the expulsion policy addressed to surplus organisational areas, while at the same time creating indirect redeployment spaces in different organisational areas, also according to the needs of the various business lines (e g counter, insourcing, etc ) hanks to this tool, the Group managed the corporate reorganisation in advance and effectively and was able to guide the management dynamics to achieve business objectives;
• b) promotion through the Corporate University of a diversified training offer also through the analysis of a series of data (personal, organisational, of training assigned, used, completed and passed) in order to define, launch and monitor training courses for the development of basic skills (in the regulatory and general area), of related role (technical-specialist skills in the banking, insurance, postal-logistics, commercial and corporate compliance areas), aimed at specific segments of the population or even at individuals, from newly hired resources to managers All data reside in an LM platform and allow for constant analysis of training trends in terms of volume and impacted population, phenomena broken down by function and other dimensions of analysis;
• c) recruiting and hiring (e g evaluation of recruiting channels, candidate screening, talent supply/demand assessment) the data of which refer to external applications and are managed by several systems, in particular HCM Oracle, which is used to collect the information needed to start the candidate selection process;
• d) competitive ntelligence: through the HR Research Centre, which, as part of the Human Resources and Organisation function, aims to promote the alignment of the professional family with market trends and best practices concerning the main processes that impact on human resources strategies, through the study, sharing and socialisation of new experiences and approaches By way of example, pazioRUO, an online platform, was created to make work tools available to all people in the function and present organised content and innovative solutions from the HR world, with a multidisciplinary and user friendly approach, aimed at the contamination of knowledge and the emergence of practices to be incorporated into functional strategies; furthermore, contributions are proposed from the various functions for the pooling of knowledge and for facilitating implementation synergies with respect to company objectives, also with a view to achieving integration into people strategy plans;
• e) analysis of the organisational network by understanding information flows, collaboration networks and informal exchanges between the various actors, in order to provide support for the re-engineering of organisational processes through the analysis of key relational dynamics Organisational network analysis is also carried out by means of the Organisational etwork Analysis methodology, which makes it possible to graphically represent the networks of interaction between people in the company his methodology develops statistical and graphical models (maps) allowing for the study of the emergence of informal networks in the organisation, at the same time enabling the redesigning/restructuring of formalised organisational structures

f) n addition, as part of its eople Analytics practices, the Development function uses a wide range of additional data, including personal, organisational, performance and potential information, to define, monitor and initiate human resources development and enhancement paths in line with business objectives he integration and analysis of such data allows to clearly identify employees with distinctive capabilities and performance, who can be taken into consideration for possible access to potential assessment programmes or for the possible activation of paths towards specific roles n addition, as part of the HR Digital actions, an area of the ntranet called " ervices for eople" was set up, which outlines the services offered by the Company he aim is to evolve the relationship model between employees and HR according to criteria of usability, simplicity, transparency and personalisation

With the same objective in mind, an OnBoarding and re-Onboarding platform has been set up to accompany the entry of new colleagues into oste taliane, enabling a more effective employee experience and at the same time, more efficient internal operations related to

3.110 mln

hours of training for compliance

personnel induction As part of its training model, the Group always dedicates close attention to compulsory regulatory training, which includes cross-cutting issues aimed at the entire company population ( afety at Work, Legislative Decree no 231/01, GD R, ntegrated Quality and Corruption revention ystem, etc ) and role aimed at specific professional figures (e g MA/ VA and Air afety training)

Legislative Decree no. 231/2001

Compliance training

he online course " he Decree 231 in business ethics" continued to be delivered in 2023 t describes, through the stories of its protagonists, the general contents of Legislative Decree no 231/2001 and the tools adopted by oste taliane to comply with the principles and provisions established by the Decree itself he course falls within the scope of compulsory training and is therefore intended for all oste taliane Group staff he training initiative deals with general topics of Decree 231, which are also of interest to the ubsidiaries; however, it remains the responsibility of each ubsidiary to evaluate any further training needs on this subject, considering the specific activities carried out by its employees and the operational and organisational peculiarities of the Company itself n addition, with regard to training initiatives aimed at the oste taliane Group's managerial figures, specific training events were held on the topics of Legislative Decree no 231/01 " he types of corruption offences" and "Market protection and corporate offences" were introduced

"The GDPR: General Data Protection Regulation"

ince 2019, the Group has been delivering the online course " he GD R - General Data rotection Regulation", which provides an overview of the new features introduced and the obligations established by the General Data rotection Regulation U 2016/679, focusing on the principle of accountability and the security measures that the data controller and data processor must adopt in order to ensure the protection of personal data he course ends by outlining the relevant supervisory authorities, means of redress and sanctions in the event of a breach of the Regulation he initiative is intended for all oste taliane Group staff, as part of the mandatory training programme n addition, for the resources that hold the role of Data rocessing Delegate, of Compiler to support the delegate and their collaborators involved in the activity of keeping the processing register, the Company has organised training workshops on the subject of "Data rocessing" delivered through webinars that provide an overview of the organisational and regulatory aspects of the GD R, focusing in particular on the management of data processing, and aim to strengthen accountability and specific knowledge on the subject of personal data processing As of March 2022, the online course " rivacy rotection in the ost Office" is being delivered to all personnel working in ost Offices

IT security

Like in previous years, the Group continued the delivery of the online course "Cybersecurity", which illustrates the topic of cybersecurity, highlighting its importance in relation to the many aspects of professional life on which it can impact he initiative is intended for all oste taliane Group staff With regard to specialised technical training for resources working in nformation ecurity, a training plan on Methodologies and Best ractices was delivered in 2023 he new online course "Fraud management" was also launched in 2023, course progressively aimed at the entire Group population and for which the first accessible training format was used

Integrated Compliance and Antitrust

ince May 2021, oste taliane has been delivering the training webinar entitled " ew Group Compliance rogrammes - ntegrated Compliance and Antitrust Compliance" aimed at the Group's management figures n addition, the Company has started delivering the online course "Group ntegrated Compliance", which promotes awareness of the guiding principles of the " ntegrated Compliance rogramme" adopted by oste taliane

he course presents the main corporate regulatory tools through the analysis of the reference guidelines and contributes to promoting and disseminating a corporate culture that is aware and attentive to the issue of compliance, which represents a strategic objective and a fundamental value for the Company he training initiative is intended for resources working in the Group's central and territorial staff functions he training offer also includes an additional online course called "Competition and Consumer rotection Compliance" for the same target group

Anti-corruption

n 2023 was the start of the new version of the online course " he ntegrated Management ystem: the Rules of the Game", an anti-corruption training activity which, in continuity with previous editions, is intended for all oste taliane Group staff and describes the integrated Quality and Anti-Corruption Management ystem with which oste taliane has equipped itself, focusing on the provisions of the reference legislation on the subject and focusing attention, through the description and analysis of concrete cases, on the good practices to be followed to ensure quality and prevent corruption

Anti-money laundering and anti-terrorism

n the year 2023, in line with the regulations of the financial and insurance sector, the usual MA/ VA induction and refresher training programmes were provided, with particular focus on the topics of Anti-Money Laundering, Credit rotection nsurance policies, supplementary pensions and thics For the Group Anti-Money Laundering function, a professional course was delivered with the aim of further deepening the knowledge of the pillars of AML regulation

Sustainability and corporate policies

n this area, the Group continued with the provision of two courses in 2023 in continuity with the previous years:

"Business and Human Rights rotection", an online training programme open to all employees and aimed at promoting the knowledge and dissemination of the guiding principles adopted by the U Human Rights Council he course contents are produced and certified by O ( talian ociety for nternational Organisation), which can be taken through digital learning

"Document Management", a course intended for all oste taliane Headquarters personnel, down to the third organisational levels, which describes the "Document Management" procedure, essential to ensure that oste taliane's Corporate Regulatory ystem achieves its objectives he Regulatory ystem regulates both the reference principles, architecture and life cycle of regulatory documents and the roles and responsibilities of the various players involved in the document management process t is therefore fundamental that these players, when drafting or updating company documents, know and apply the rules defined by the "Document Management" rocedure

Transport safety and dangerous goods

he Group has organised "Air ecurity" training courses aimed at the resources involved in ensuring - for air freight - that security checks are carried out on cargo or mail in accordance with the regulations and in liaison with AC n particular, they are made up of " nitial raining" and " eriodic Update raining" separated according to the activities/role performed

n addition, in order to ensure the safety of employees driving HGVs, the Group organised "CQC - Carte Qualificazione Conducente" training for them Again, the course consists of an " nitial raining" (CQC issue) and a subsequent " eriodic Update"

Finally, with a view to ensuring regulatory compliance of the services provided by oste taliane with regard to the transport of dangerous goods, the company provided courses on "Dangerous Goods" Organised training is differentiated according to the mode of transport For air transport, the "Dangerous Goods Regulation" course was delivered, a specific training activity to support resources in the proper handling of dangerous goods With regard to road transport, on the other hand, the course "ADR: uropean Agreement concerning the international carriage of dangerous goods by road" was organized

Integrated management system

he online course " he ntegrated Management ystem: the Rules of the Game", which provides an overview of the oste taliane Group's ntegrated Management ystem and focuses on the application of the fundamental rules to improve the quality of its services and prevent corruption, promoting greater awareness and improving skills and the quality of work to achieve the company objectives, was delivered to all Group staff in 2023 We also highlight the launch in February 2023 of the online course "How to best prepare for a Management ystems Audit" he course illustrates the purpose of a Company Management ystems Audit and provides guidance on how to carry out this important audit

Business continuity management

n ovember 2023, the B A course for Business Continuity Roles, Responsibilities and Workflows on GRC Archer was delivered in webinar mode he course, dedicated to about 140 resources working in different corporate functions, aimed at illustrating the new Business mpact Analysis methodology for business continuity implemented on business processes according to the new methodology derived from the Group CM/BCM/ M Model

he Group has implemented targeted training programmes for the managerial class n particular, webinar cycles were held to enhance managerial skills in the context of the guidelines of oste taliane's Business lan and to compare them with the best practices of excellent national and international realities nstitutional pathways were developed for new managers to accompany them in their new role and in order to foster cross-functional skills development and promote an exchange of personal and professional value Again this year, managers were involved in D& -related initiatives, such as workshops focusing on Gender, Generations, Vulnerability and Culture of nclusiveness, aimed at developing a common culture and promoting inclusion at all levels of the organisation n addition, a webinar on LGB Q+ was organised to raise awareness of labour inclusion and increase awareness of affective orientation and gender identity

n addition, activities aimed at developing managerial skills related to the Business Units in Mail, Communication and Logistics ( CL) continued with training on the Lean methodology (Lean Academy), while in the ost Office network, courses were developed dedicated to ales Managers and Operational Management Managers to strengthen their roles following the revision of the territorial organisational model he top management of M A and D O were involved in experiential activities in order to strengthen collaboration, integration and sharing strategies in the management team Finally, for the Banco osta function, a training course for managers based on the Crafting Leadership model was implemented, aimed at increasing leaders' awareness of their active role in promoting the development of people and the organisation

Finally, the Group has implemented innovative and immersive training interventions for managers and high-potential resources, in order to spread the culture of leadership and improve skills in managing complexity, decision making and problem solving

Of particular relevance is the " tudy our" training initiative that aims to create moments of contamination with talian companies that represent excellence in various product sectors, from whose history to gather insights and with whom to compare best practices " tudy tours" are active, participative and cognitively and emotionally stimulating learning opportunities during which the people involved have the opportunity to engage with colleagues and managers of the host companies, reflect and develop strategic skills for their own work Accompanied by professionals as facilitators and lecturers, in these training initiatives, participants have the opportunity to gain greater awareness of the distinctive factors of the markets and make useful comparisons with their own reality

Mail, Parcels and Distribution

Diversified skills development within the Poste Italiane Group

raining initiatives focus not only on upgrading skills and verifying compliance with VA and MA regulations, but also on developing digital skills, innovation and the management of change and complexity he Group invested in important training projects, involving the commercial structures of the ost Office etwork and the Business and ublic Administration Market n 2023, in line with the regulations of the financial and insurance industry, the usual MA/ VA -compliant induction and refresher training programmes were implemented for sales staff, customer service staff and internal trainers of the B -Channel roduct upport function he mapping of development and training needs (annual assessment) was conducted for both the financial and insurance areas with a particular focus on Anti-Money Laundering, Credit rotection nsurance policies, supplementary pensions and thics n December, the MA tests valid for maintaining the O 22222 investment advisory service certification of M 's sales network were completed raining activities in the area of ostal avings included in the distribution agreement with Cassa Depositi e restiti also started in 2023 n support of the olis roject, training was provided to ost Office network staff progressively involved in the provision of ublic Administration services to citizens: certificates and voluntary jurisdiction for the Ministry of Justice n addition, a specific basic knowledge initiative on olis objectives and characteristics was dedicated to the entire company population n the Customer Operations sector, particularly in the area of Customer Assistance, training initiatives were launched dedicated to specific targets such as utor rainers, Operations utors and Financial ervices Operators focused on the evolution of the assistance model towards a greater commercial proposition and an integrated and omnichannel customer experience t is also worth mentioning the launch of a specific training project on Artificial ntelligence and Conversational Design dedicated to resources working in the Customer ervice Models structure n the ostal and Logistics area, training initiatives were carried out, in continuity with last year, to foster the orientation towards transformation through the dissemination of the Lean methodology as a cultural model and approach to work, as well as specific projects concerning postmen and women and other professional figures, thus also strengthening management and operational effectiveness n particular, training courses were held for Quality Managers and afety pecialists, with the aim of enhancing integration, proactivity and cross-functional relations o further support technical expertise and with a view to continuous improvement, training initiatives were carried out on the Methods- ime Measurement (M M) methodology n the area of nformation & Communication echnology ( C ), numerous training activities were carried out to develop, strengthen and update specialised skills Given the highly specialised and broad context of nformation echnology, the acquisition of an C Catalogue of over 4,800 courses made it possible to cover the thematic macro-areas of interest, supporting the training of specifically qualified structures

For Group companies, we highlight the training initiatives implemented by DA to pursue innovation and optimisation in order to meet future challenges related to new business, and the training activities carried out by oste Air Cargo to maintain and develop the specific knowledge of flight and maintenance personnel With reference to exive, the Quality culture initiatives aimed at increasing awareness of the importance of customer value within the Group's Quality model are highlighted n ostel, with the aim of accompanying the transformation phase of the company's business model, a training course on Digital Marketing skills was set up, aimed at supporting the strengthening and evolution of the skills of the professional family in the light of the changes in the context, market and offer (digital and innovative services) Finally, MLK Deliveries pa completed the mandatory regulatory courses aimed at ensuring the compliance of company processes and activities

n the Corporate sector, training plans were implemented for the Real state function on both energy and environmental and safety site compliance n addition, in the last quarter, a knowledge mapping exercise was initiated in B M (Building nformation Modelling) in order to customise the designed training courses to the specific needs and peculiarities of the resources involved n the area of Corporate rotection, training initiatives on hysical ecurity involved specific targets on active security topics such as best practices in the design of video surveillance systems and anti-robbery and anti-intrusion and passive security systems as reference standards and design of an integrated, burglar-resistant system raining was also provided on security management issues, in compliance with national regulations and the international standard, with the launch of training initiatives on emergency management in the event of adverse events during travel (travel risk management) and on security management at major events n the regulatory/contractual area, the year saw training courses dedicated to the impact of the Cartabia reform on civil and criminal proceedings and to the new ublic Contracts Code For the Communication function, training continued, aimed at upskilling skills, consisting of courses on the evolution of social media, mobile and digital journalism, effective writing techniques and data storytelling Finally, a series of meetings on inspirational topics involving academics and testimonials from external companies was launched for the Human Resources function Update meetings on key internal HR processes such as people and performance management were also held n the area of Administration, Finance and Control, specialised courses were organised, with internal lecturers, on tax matters (settlement deeds and tax treatment of framework agreements and delivery vouchers) raining activities also continued, at various levels, on a wide range of O standards (D& , corruption management and prevention, business continuity, quality, computer incident prevention, privacy, etc )

Financial Services

At Banco osta, a training initiative on Consumer rotection was carried out to deepen knowledge on the subject across the function (e g : Marketing, Channel roduct upport and Compliance) and specialised training for the Compliance function on Data Literacy and Financial ntermediation Risks n order to offer Banco osta people the same training opportunities as the reference sector, an agreement was made with AB for the participation of professionals in training courses organised by the Association n order to support business developments, a collection of synchronous training proposals from leading market institutions on the topics of industry evolution (Observatory " nnovation in Financial ervices") was compiled

At Banco osta Fondi GR, the offer of sector-specific regulatory courses continues (e g Knowledge and Competence, rivacy, Anti-Money Laundering, Business Continuity and Management etc ) With regard to technical-specialist training, the focus was on strengthening industry-specific skills n this context, the training activity "Money Market Derivatives" was proposed, which analyses the return and risk profiles of a bond portfolio and illustrates how to use instruments to control interest rate risk and volatility nitiatives were also promoted to explore the skills required for the company's activities, with a focus on "sustainable finance", considering the Banco osta Fondi GR position as one of the

Insurance Services

main players within the oste taliane Group in this area

he aim of the training for the osteVita Group ( osteVita, osteAssicura) was to update the skills of the various professionals n particular, the updating of skills has concerned regulatory and compliance issues specific to the insurance sector ( VA regulations, Legislative Decree 231/01, Anti-Money Laundering and Anti- errorism, Quality and Anti-Corruption, GD R rivacy, nformation ecurity, Fraud Management, Occupational afety, ustainability and Company olicies, O 9001 and 37001, Data Quality, Business Continuity lan, Company Regulatory ystem, rivacy rocessing Register) n addition, training activities were aimed at developing specialised knowledge of the company's business, such as actuarial issues, risk and claims management, regulatory updates on insurance product design and sustainability factors in the insurance industry Courses were offered on aspects such as the use of Bloomberg financial software to support investment management and asset allocation, as well as training on innovation, digital transformation and blockchain n addition, refresher courses were provided on finance topics such as financial statements and taxation in insurance Finally, at nsurance, in order to support the company's strategic plan, the main regulatory issues, both general and specific to the insurance sector, were addressed in 2023, technical and specialised training courses were provided ( &C echnical raining, Finance, nnovation, G, QL raining, Agile, L, etc ), and Development, Welfare and qual Opportunity and ransversal kills courses were offered

Payments and Mobile

he training courses dedicated to ostepay continue to focus on cross-cutting topics, with a focus on digital, financial and professional effectiveness he Group promoted the strengthening of skills in banking, service design and C At ostepay, a training initiative on Consumer rotection was implemented to deepen knowledge on the subject across the function raining on specific target groups on Banking ransparency issues also continued, and, in order to provide a comprehensive compliance training proposal, a number of Digital Compliance events were held o foster managerial development and the acquisition of key competencies for the company, several xecutive Labs and mini-master courses were delivered in cooperation with leading national and international business schools Finally, the higher education programmes continued with diversified Master's programmes on Competition Law and nnovation, Data cience and Quantitative Finance, Marketing & ales and Flex G and ustainable Development

Continuous performance improvement

he Group undertakes to regularly monitor the effectiveness, efficiency and quality of the training programs provided, as they constitute key indicators of their performance ffectiveness is assessed through learning tests conducted at the end

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

of the training activities, while efficiency is measured by the ability to achieve the aforementioned objectives by appropriately using the available economic and organisational resources Finally, quality is evaluated by means of questionnaires administered to employees to assess their level of satisfaction with the various aspects of training provision

he development system

he Development, Change Management and Digital HR Function sustains the growth of the business through the valorisation of people, with a view to employee experience, capturing potential and talent, supporting motivation and enhancing experience pecifically, the function guides the evolution of the corporate culture by promoting the change of mindset, behaviour and operating methods of employees in a logic increasingly projected towards widespread leadership, which makes responsibility, integration and collaboration its main drivers Furthermore, through an integrated system of policies, programs and development tools, as well as through eople Review and engagement processes, the Group promotes an organisational culture centred on people as a whole, considering them from both a personal and professional point of view

ach initiative is designed to involve a diverse audience belonging to all corporate functions and all Group companies articular emphasis is dedicated to guaranteeing equal opportunities for participation, in terms of age, gender, functional and geographical affiliation, without prejudice, however, to the specific entry criteria of each initiative

he Development ystem is built on the following three pillars that integrate an articulated set of processes, tools and methodologies:

• 1. scouting: allowing the differentiation of growth opportunities according to target audience and level of professional maturity couting programmes contribute to enhancing talent through activities to detect and develop the potential of resources;
• 1. management planning: aimed at identifying development priorities with a view to succession and the reduction of "managerial risk";
• 1. development: to accompany people in their growth and expand the enhancement of skills in relation to company and business needs

All Development, alent and Change Management initiatives are periodically communicated to the company population through the main internal ( G oste, newsletter, corporate ntranet, etc ) and external (social media, specialised press) communication channels

he objectives pursued in 2023, in continuity with previous years, were aimed at maximising the effectiveness of scouting and development programmes, expanding their capillarity and impact, including in terms of numbers, with a priority focus on business and the needs identified by internal customers Furthermore, the establishment of the Development, Change Management and Digital HR function was crucial to maximising the integration between the scouting, development and eople Review processes; furthermore, this facilitated the start of an HR digitalisation process within a broader strategy for the evolution of the services offered by Human Resources and Organisation

he main drivers directing activities are as follows:

• expand knowledge of people, their skills, potential and motivation, to support business functions in defining talent pipelines at various seniority levels;
• consolidate eople Review processes aimed at the shared identification of talents and the implementation of development paths dedicated to them;
• greater impact on the company population through a more widespread use of development tools and their consolidation with a view to continuous improvement;
• promote and systematise the use of relation-based development programmes, such as mentoring and coaching, as enablers for the enhancement of the skills needed for change management;
• ensure equal opportunities in participation in development programmes, also considering the broadening of career prospects for women;
• improve people's involvement and motivation through bottom-up processes of participation in initiatives with a strategic focus;
• experiment with innovative tools for the promotion of new models of work, interaction and collaboration;
• improve the knowledge of the initiatives activated and their impact on the organisation, through the activation of multiple channels and communication opportunities

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Platform "INSIEME 24 SI"

oste taliane, in order to consolidate its sustainable development strategy, launched in 2021, " M 24 '", the platform for collecting ideas and contributions aimed at the entire Group population t is open to the entire population and transversally involves the different areas of the company's organisation, consistent with the objective of responsible growth and the process of digitalisation and social cohesion, promoting proactivity, innovating and creating shared value Within the framework of oste taliane's trategic lan, " M 24 " represents a space in which the contribution of all stakeholders is taken into account, as fundamental contributors to the realisation of the lan his initiative fits within the eight pillars of the sustainability strategy, highlighting the Group's commitment to actively involve the business community in order to contribute significantly to the Company's sustainable development path

he first edition, which opened in ovember 2021, was immediately followed by the second, which ended in eptember 2023 Both editions received wide involvement and interest, with more than 1,300 proposals submitted by colleagues and subsequently evaluated by more than 50 business managers from all business functions from the programme's launch to date

During the course of these two editions, two Bootcamp events were organised, veritable "innovation marathons" in which more than 470 participants worked in teams to develop and explore their proposed ideas and presented their pitches to the jury of in-house managers

From the outcome of the two Bootcamps, the best 20 proposals were selected, which then followed a typical start-up incubation path he teams, comprising a total of 115 people, worked with agile/sprint methodology and, thanks to internal mentors and external tutors, produced prototypes that were later presented live to top management during the programme's final events ome of these prototype solutions, supported by the business functions, are currently going through a consolidation and implementation phase, with the aim of turning into concrete projects capable of generating a positive impact inside and outside the company

Both editions registered a wide participation and involvement, also witnessed by the accesses to the intranet and campaign news (about 60 thousand in total) and the likes collected during the social vote of the ideas (about 36 thousand)

With regard to people development and the promotion of professional development, the Group, in line with its work in previous years, digitally delivered scouting programmes to intercept potential and skills that could feed the talent pipeline at various organisational levels he programmes are part of a digital structure that spans and supports all process steps Ad-hoc platforms allow optimal access from all devices, both fixed and mobile, thus increasing the efficiency of both dispensing times and the environmental impact of dispensing in terms of CO2 emissions and zero paper use

hese initiatives return information both with respect to the level of potential that has emerged and integrated quantitative and qualitative indications regarding the monitoring of the Leadership Model's capabilities, the orientation of participants and their motivation hese are:

• POP: the process of intercepting young people with limited company seniority, who are included, based on predefined criteria, in a Development process, functional to growth towards roles of greater complexity he process is directed by internal Developers certified to digitally conduct Development Center sessions
• MLAB: the process of intercepting professionals and managers, with consolidated experience in the role of manager to be developed on more important management positions his path has also been entirely redesigned in a digital perspective

Following the assessment of potential, both programmes provide specific interventions to reinforce the identified skills

people involved in the POP and MLAB programmes in 2023

450

profile, with a special focus on coaching as the preferred support tool n addition, managerial scouting processes, aimed at executives growing into roles of greater responsibility, were further expanded to include individual assessment solutions Both programmes received a positive evaluation from the participants, who appreciated the usefulness, the level of professionalism of the Assessors and the tools made available for use

n addition to the scouting processes, the Leadership Assessment programme is aimed at senior managers, with a view to supporting executive development policies, contributing to the design of career paths and succession plans n line with the Diversity & nclusion objectives defined by oste taliane to support the 24 strategy, the 2023 programme has given priority to the involvement of women managers, identified in periodic Review meetings as potential "successors" for more complex positions With this initiative, oste taliane strengthens its commitment to supporting the growth of the skills necessary for leadership development

With the aim of increasing involvement in potential assessment processes, also involving populations not attributable to those eligible for the scouting programmes already in place - O , MLAB, Leadership Assessment - the Company continued to invest in smart potential assessment tools, usable online and characterised by rapid administration times, which made it possible to involve an additional 884 people compared to 2022 n particular, this new approach was used in the eople Review processes, for the valorisation of the resources of the HR, Group ngineering and CL Centre Managers families

n the context of scouting processes, considerable attention was paid to skill assessment, programmes aimed at assessing the coverage of professional roles through an analysis of technical and specialised skills, as well as soft skills, within oste taliane's rofessional ystem kill assessments are implemented through specific campaigns designed in response to the particular needs of rofessional Families During 2023, these initiatives focused on DU s in ost Office networks and CL Centre

+884

resources involved in mass scouting compared to 2022

Managers, involving a total of 3,472 resources he campaigns made it possible to map the coverage of roles by identifying any discrepancies between current skills and those required, thus initiating the design of training and development actions aimed at strengthening skills and assessing the potential for growth into more complex roles

he results of the potential, together with the performance trend and seniority have guided the structured implementation of the eople Review, a process aimed at enhancing the talents of the Group, which involves the business lines together with RUO, in a transversal comparison, aimed at bringing out a shared concept of talent within the organisation

During 2023, the eople Review involved the professional families DU , Group ngineering and HR he line managers

+50%

presence of women in coachee activities compared to 2022

and HR managers discussed a talent pool of around 1,000 resources, with the aim of defining accelerated development solutions and expanding the pipeline of candidates to cover positions of business or interest, also transversally within the Group For the talents identified in 2023, the Blooming rogramme continued, a personal programme for Group talents aimed at developing cross-functional skills, broadening vision and relationships, and enhancing leadership With regard to the introduction of innovative tools in the area of skills development, the killGym

initiative continued During 2023, over 1,200 employees were involved in the practice of "critical conversations" aimed at strengthening soft skills relating to the management of the feedback process, through the use of a digital platform that offers simulated environments guided by artificial intelligence

n 2023, coaching activities were strengthened, carried out by both internal and external coaches, which involved managers and young talents in paths to strengthen transversal skills useful for improving performance he number of coachees increased by 50% compared to 2022, with significant female participation n addition, the Mums at Work programme continued, aimed at employees returning from maternity leave, accompanying them in the process of reintegration into the Company through dedicated coaching courses he initiative is in line with the upport for Active arenting olicy, launched in 2022, which defines the company's framework to support both women before and after motherhood and the evolution of the concept of shared parenting he olicy emphasises the responsible role of leaders and managers in creating an environment increasingly based on trust and engagement, encouraging the expression of the personal and professional skills of each employee n order to accompany the cultural and social paradigm shift, continuous dialogue, through anticipatory plans and time-structured moments, is an enabling lever to spread a growing awareness of the value of differences and inclusion he olicy therefore introduced management and caring processes that offer a concrete response to male and female workers in innovative ways, approaches and perspectives

n addition, with the aim of promoting a leadership style that facilitates change management uniformly within teams, coaching activities have assumed a central role n fact, in addition to traditional individual coaching, collective coaching programmes, such as group and team coaching, were also consolidated in 2023 hese forms of collective coaching have been implemented to support groups, which are regarded as fundamental elements of the organisation, during change processes in order to improve their efficiency and productivity

n the constant commitment to enhance people based on the results achieved and the expertise gained, the "Development paths in the territory" project continued which, in continuity with 2022, outlined specific paths for key roles in the territory, through co-planning between central and territorial HR and Line functions, in an agile manner and capable of strengthening, at the same time, the development skills of the functions involved articularly significant in 2023 was the start of the process of designing tailor-made pathways for the professional family, as part of a broader plan aimed at developing skills and providing growth opportunities for professionals belonging to this family

n a context characterised by a constant drive for change, people are called upon to express greater responsibility, autonomy and flexibility n response to this need, the oste taliane mentoring programme has evolved, establishing itself as a stable and widespread process throughout the company as a space for

+22%

female mentors compared to 2022 discussion with recognised managerial best practices and role models n 2023, more than 457 mentors and mentees actively participated in the Company, with a significant female presence (+22% female mentors compared to 2022) Mentoring ensures the expansion of a global

457 Mentors and

Mentees in 2023

279

vision as it allows a comparison between diversity of gender, age and experience Cross fertilisation, understood as the promotion of transversality between different functions and effective integration between the centre and the territory, constitutes the main driver of the programme, as it promotes mentorship relations between managers and professionals coming from different areas and functions

With a view to enhancing intergenerational exchange, a call for mentoring was launched specifically targeting the group of AL- ewly Hired University Graduates n particular, these young talents were invited to join coaching courses with senior mentors on a voluntary basis AL represent 36% of the total number of mentees in 2023

n connection with the assessment campaign for white collar workers, 2023 saw a further consolidation of assessment and feedback tools

n order to provide support to the teams and increase the level of engagement, the possibility of involving the project teams in the performance assessment was integrated into the , both during the assignment of goals (goal management) and in the actual assessment phase During this process, roject Managers, Organisational Contacts and members of crossfunctional teams are therefore involved as additional providers of feedback on the performance of employees involved in cross-functional projects his approach allows direct managers to broaden the view of their staff and take this into account in the overall performance assessment

n compliance with the provisions of the Corporate Governance Code for Listed Companies, during 2023, succession plans were carried out as part of the oste taliane Group's annual Management Review process hrough dedicated meetings with each function manager, valuable resources within the Group were identified and mapped, which, at various levels of the organisation, are considered as the priority pool for managerial development opportunities he definition of succession plans ensures that key positions in the organisation are covered, helping to contain managerial risk he uccession Coverage ndex, which measures the "completeness" of succession plans, showed very positive results articular attention was paid to the presence of women in management succession plans, with the aim of increasing the representation of women in top positions within the Group pecifically, there is an upward trend on the Gender ndex for all mapped positions, indicating a progressive increase in the presence of women in the Group's future leaders

he implementation of the Oracle HCM Cloud platform over the last three years has enabled the integrated management of people assessment and development processes he platform made it possible to rethink the evaluation process as a pivotal process for people's development o emphasise the relevance and centrality attached to individual competence development and performance, the assessment process is called the erformance Development lan ( ), which is based on the promotion of a culture of results, collaboration and feedback

Feedback plays a fundamental role within the , acting as an essential tool for growth and constructive confrontation between people, their manager and the team to which they belong t also raises people's awareness, ensuring continuous improvement of the performance expressed

All programmes managed by the central Development, Change Management and Digital HR function are constantly monitored Data and information on the various topics are periodically shared with the HRB involved in the process As regards data management and governance, internal systems or digital platforms from HR partner suppliers are used (e g A , W B R , M eams, Oracle HCM)

Following the initiatives, RUO- CMDH regularly conducts satisfaction surveys to evaluate their effectiveness he final figures generated and the feedback collected allow us to evaluate the degree of effectiveness of the development initiatives

o encourage broader involvement of people, the implementation of a work model has been expanded that provides for greater individual responsibilities and organisational and participation integration (bottom up, team) that goes beyond the traditional evaluation model (top down, manager-collaborator)

his provides:

• self-assessment, with which to give an opinion on the achievement of goals and the skills implemented during the year, also for the purpose of further comparison during the feedback interview;
• self-assignment of objectives, both operational and developmental, with the possibility of direct monitoring of the progress of the assigned objectives;
• participation in the assessment of employees and project leaders for members of cross-functional teams

Crosstraining to support the Company

ransversal training initiatives play a significant role for the Group, as they enable the expansion of knowledge on topics common to several professional families, promoting the development of skills in a cross-functional perspective and fostering an exchange of value, both on a personal and professional level

n fact, the year saw the launch of the " ransversal Competence lan", aimed at the indirect production population, with the objective of fostering reskilling in specific competence areas his initiative was promoted in line with the uropean Community's proclamation of 2023 as the uropean Year of kills, in order to assist both companies and individuals in successfully coping with the changes taking place, fostering innovation, the transition to a green and digital economy he lan consists of three "hybrid" training paths, which supplement compulsory courses with additional courses that can be freely enrolled in opics covered include: Mindset and Behaviour, Digital and nnovation, and ustainability

n addition, the use of the Open Learning Area content, freely accessible by the entire company population for on-demand use of the training offer, is confirmed he learning area enables staff to choose their own training in a self-development perspective n support of the initiative, a wide-ranging campaign to engage the company population was carried out with the nternal Communication function, in several stages and with specific objectives A survey was launched to raise interest in the initiative itself and to increase the number of active participants ubsequently, a series of news items related to national and international events in 2023 (such as nnovation Day, Book and Copyright Day, Creativity Day) and dedicated to the launch of new courses available for automatic enrolment were published An important transversal initiative was dedicated to the topic of co-Driving he actions implemented by oste taliane to contribute to the reduction of CO2 emissions into the air and raise awareness among the resources involved towards eco-sustainable driving also include the event "Green alk: ogether for the conscious consumption of energy", which involved the heads of organisational/operational structures to make them aware of the subject and the procedures to be applied in order to reduce energy consumption, and the online course " oi Green - L' co Routine in oste taliane", which provides data and useful elements for reflecting on the value of sustainability and the benefits of adopting environmentally aware and respectful behaviour

he focus on the development of soft skills, which are increasingly important to support change, is confirmed: from the way of relating to colleagues to the ability to solve more or less complex problems Hence, new initiatives to enhance decision making, problem solving and critical thinking skills, all necessary to meet the challenges that the environment imposes, as well as public speaking courses and various project management and language training proposals

Insourcing and re-employment

Benefits of employee development programmes

oste taliane's " nsourcing and Re- mployment" project aims to re-employ, on outsourced activities, internal Group personnel who, as a result of organisational initiatives and/or productiondigital developments, are not allocated to fully productive/value-added areas

he programme, designed to train and provide new skills with a view to professional growth and flexibility, was also dedicated to the re-employment of "workers in a condition of fragility" within the meaning of current legal provisions who, unable to work on company premises in relation to health emergencies, found different employment to protect health and safety in the workplace he re-employment of internal staff allows for the in-house management of previously outsourced activities, with benefits both in terms of maximising productivity and saving on the income statement, which in 2023, stood at €36 8 million, enabling the reduction of the recourse to external supplies

During 2023, 2,500 people were interviewed, of whom 1,684 (equal to 1,561 F ) were redeployed within the targeted functions/areas of re-employment through reskilling and training aimed at enrichment and acquisition of new knowledge he programme was very successful among the employees

Best Performer Development Programme

Dedicated to resources identified as "best performers", the programme aims to strengthen the participants' soft skills profile, increase personal awareness and make people aware to take responsibility for their own professional development

pecifically, the programme provides diverse individual development paths such as, for example: scouting processes (MLAB; O ; mart assessment, alent Review, etc ) functional to bring out talented resources;

competence development initiatives (Coaching; Mentoring; Counselling, etc ) functional to accompany people in their growth and accelerate their development in relation to company and business needs;

engagement activities ( M 24 ) and putting into play a self-entrepreneurial and innovative approach to contribute to the realisation of the company's strategic objectives

n general, the programme leads to the empowerment of participants' competencies, leading to a competitive advantage of the company in the market, and is linked to broader business benefits in terms of engagement, motivation and sense of belonging of the resource to the company he path to the development of the best performer target in 2023 led to benefits both in terms of containing the absenteeism rate and the impact on the turnover rate on a voluntary basis with exit from the Company Furthermore, the enhancement of the skills of the programme participants led to promotions within the target group involved and an increase in the turnover generated

As evidence of these benefits, the following results were achieved in 2023, with reference to the best performers target:

• absenteeism rate of 1 66 % compared to oste taliane's absenteeism rate of 3 9 %, to be understood as referring only to sickness in 2023, net of Covid;
• turnover with voluntary resignations constituted by about 1% of the best performer target compared to about 2% at Group level, with reference to the resignation case in 2023;
• promotions in 2023 equal 12% of the best performer target compared to 6% at Group level;
• 53% of the target group surveyed reported a superior/excellent performance rating

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

n order to improve the working conditions of employees, oste taliane dedicates particular attention to active dialogue with the company population n this context, the Group has effectively developed an internal communication channel, the oidi oste Community, which aims to generate, promote and implement constant interaction between all members of the Group, facilitating the sharing and management of information, also contributing to spread the company culture more widely, support the brand reputation and encourage the active participation of employees in company dynamics

Poste Innovation Jam The importance of exchanging ideas and experiences

n order to spread a mindset related to innovation and a new way of working, strengthening skills related to collaboration and enhancing the richness of diversity in terms of collaboration, confrontation and inclusion, oste taliane has promoted the " O OVA O JAM" initiative, which consists of a series of internal Hackathons and Datathons, i e "innovation marathons" of three days each in which participants work in teams to develop solutions to respond to the business "challenges" identified from time to time he teams are supported by xperts from oste taliane and Mentors from lis, partners in this initiative, and at the end of the three days, they present their idea to a jury of managers from the impacted business functions, who select and award the best ones

he initiative gives participants the opportunity to get to know new colleagues, facilitates the exchange of experiences and skills, and experiments with the agile approach to tackle real problems with innovative tools that stimulate collaboration between different areas, functions, generations and territories

During 2023, 3 editions of the programme were realised, which saw the participation of about 180 employees: a Datathon in the D O area, to develop innovative solutions using data, a Hackathon dedicated to the Marketing professional family and another in the ost Office network/Operational Management area

Poste Italiane obtains ISO 29993 certification

Confirming the validity of oste taliane's training offer, the Group obtained certification of its training processes in ovember 2021, valid until 2024 (U O 29993:2019) he certification came after the profound transformation of training processes through the revision of the organisational model of the Corporate University for Academy, the implementation of new tools and support systems, and the delivery of training almost exclusively by remote his certification is important for the robustness and solidity of the implemented training model n October 2023, the annual surveillance audit was passed

Poste Italiane Group Report on Operations at 31 December 2023

MAIN RELATED TYPES OF CAPITAL

taff welfare and well-being

n 2023, the Company's commitment to the protection and well-being of its people continued, through initiatives aimed at strengthening the welfare system, with interventions in favour of employees and their families in a growing logic of proximity and personalisation of the caring he relevant character of the path undertaken can be traced back to the integration of the initiatives promoted, which involved personal services, organisational behaviours and relations within the Company

Welfare is a distinctive feature that qualifies Poste Italiane's positioning in the market and its relationship with civil society. Well-being represents a "collective feeling" rooted in Poste Italiane's natural inclination to take care of people, territories and social contexts.

oste taliane is dedicated to promoting activities aimed at improving the well-being of its employees, facilitating more favourable living conditions and, at the same time, encouraging superior work performance hese initiatives are integrated into the process of enhancing staff commitment, which is considered essential to create a positive corporate climate that ensures social well-being and productivity levels in line with company objectives

he adoption of the company welfare system is characterised by taking a comprehensive perspective on the individual, going beyond the work sphere his approach is also able to consider the individual experience in social, family and territorial contexts, highlighting an increasing focus on listening and valuing individual contributions his is all part of a logic of greater involvement towards common and shared goals

Poste Italiane's inclusive company welfare system

A continuous process accompanies company welfare policies and is based on the value of people and the skills they can generate if they are put in a position to express the potential they are capable of, without cultural and social conditioning and without prejudice he aim is to generate organisational well-being, releasing the generative and innovative potential present in all people regardless of age, gender, health status, role and social status

he implementation of the inclusive company welfare system has been predominantly characterised by certain distinctive assets:

• adoption of an integral vision of the person, which goes beyond the work aspect and takes charge of the individual's experience, including in the social, family and territorial spheres;
• listening to and valuing individual contributions in a logic of greater involvement towards common and shared objectives;
• strengthening of "proximity" welfare solutions as opposed to a more impersonal and generalist service system

At the organisational level, there is a corporate function dedicated to Welfare, within the Human Resources and Organisation function, embedded in the ndustrial Relations structure, called "Labour Legislation, ocial ecurity and Welfare"

he company welfare plan can be traced back to illustrative documents, which are developed in line with sustainability policies For the main welfare initiatives, in addition to contractual agreements setting out requirements and performance conditions for suppliers, internal regulations and policies are also available A strong monitoring of the impacts of welfare

initiatives is also designed, which is mainly reflected in the definition of strategies, objectives, organisational managers and, above all, cultural awareness of the context through communication and listening plans to encourage the active participation of people in the co-generation of welfare solutions to increase motivation and engagement towards common objectives

he system for measuring the corporate impact of the welfare plan is therefore linked to a constant and programmatic survey of the various initiatives put in place, having clear metrics of appreciation that, in addition to purely objective elements, are also clearly identifiable on a subjective level in terms of involvement, listening, motivation, skills and soft skills of both suppliers and work teams he aim is therefore to make explicit how the proposed initiative should manifest itself in terms of:

• Output: identifying the result of the action implemented
• Outcome: defining the object of the action
• K s: indicators to measure the various aspects of the plan
• rend: to give comparability and comparison with previous editions

hanks to the adoption of more and more timely and targeted welfare policies, it has been possible to identify certain behaviours that promote personal and organisational well-being:

• disclosure: what the Company does for its people must be brought to the knowledge of the entire organisation, without intermediaries or cascading processes through the hierarchy;
• proactivity: managers, the HR function and employees must be mutually active in order to foster the dissemination of values and plans that support people's well-being;
• proximity: solidarity mechanisms must be activated in the workplace that facilitate proximity and exchange relationships between people, including through horizontal collaboration models;
• customisation: the identification of the most suitable levers, measures and solutions is shaped on the individual through listening and involvement;
• dynamic adaptation: the solutions and responses identified at a given moment may not be the final ones, as people change and, often, the organisation does too For this reason, it is necessary to activate work adjustment mechanisms to ensure that proposals and solutions respond to the evolution of work situations, the relational and social context and the market

oste taliane's aim is to structure a company welfare system capable of intervening to neutralise inequalities and conservative resistance with intergenerational, modular and solidarity-based programmes and levers for the well-being of individuals and, in general, for collective balances

Poste Italiane Group Report on Operations at 31 December 2023

Poste Italiane listens to its personnel

Survey "Poste Mondo Welfare": survey aimed at non-executive employees of the arent Company and the Group Companies participating in the programme to detect the satisfaction of the participants in the plan to convert the result bonus into welfare and to incorporate the needs of the entire company population for the launch of the edition referring to the year 2023 n particular, the activity consists of a series of surveys aimed at programme members to detect their enjoyment of the experience of the various services and their prospective needs, and at the entire company population to increase the level of engagement and participation on the value of the programme in relation to the launch of the annual edition as well as the better setting of the offer in relation to the real needs of the company population he rating scale on which the survey was based provided values from 1 to 10

Survey Home-work travel 2023: annual survey that analyses employees' home-work travel habits in order to identify, in the medium and long term, sustainable mobility solutions to reduce CO2 emissions in the interests of employees and the community he survey was conducted using CAW methodology he survey featured multiple-choice questions, radio buttons and open fields n 2023, the survey was targeted at approximately 39,000 employees of the 135 locations with more than 100 employees, in 75 municipalities in the territory

Survey "Services for the person": annual survey aimed at the entire company population analysing user satisfaction with the content and navigability of the section on the corporate intranet

Survey "IlNostroXcorso": survey addressed to the entire company population aimed at investigating satisfaction with the initiative for all employees launched on the occasion of oste taliane's 160th anniversary celebrations

Survey "Car rental service": survey to investigate satisfaction with the company car rental service arget: fellow recipients of the service delivered via e-mail and managed by the Real estate function

Survey Webinar Sponsorship: survey aimed at investigating satisfaction with online webinars dedicated to sponsorship activities arget: macro area managers and webinar participants

Survey on the OLA Platform: survey to assess staff needs regarding the voluntary training platform, aimed at the entire company population

Survey "InEvidence": survey aimed at investigating colleagues' needs and opinions on internal communication channels, tools and initiatives

Survey Disability - Vulnerability - Inclusion: survey addressed to the entire company population, aimed at identifying the main needs and perceived level of inclusion related to the health conditions of both colleagues with disabilities and those with vulnerabilities, also comparing it with those who are not affected by any of these conditions he survey also provided suggestions to expand the organisation of events and initiatives in support of disability, so that more can be said about it and more information can be disseminated on the subject

Survey "Research project with PoliMi": the survey is part of the research project conducted by the olytechnic of Milan to build an interpretative model on employee engagement/disengagement with respect to established variables arget for 2023 was approximately 13,700 people representing the main company functions, including employees already involved in 2022 n addition, the analysis of the results of the second survey was completed in 2023

Survey D&I Event "Poste, Plurale, Universale": feedback questionnaire conducted anonymously among employees who participated in the corporate event Diversity & nclusion day with testimonies from employees and external guests on the topics of gender, generations, vulnerability, interculturality to collect satisfaction and programmatic ideas for the next editions of the initiative

By intensifying its internal communication activities, oste taliane Group, through innovative projects and methodologies, has been able to strengthen the dialogue with its employees and achieve multiple international recognition n this regard, in June 2023, the magazine ostenews reached its 50th edition, in tabloid-type daily format and with a 32-page spread

Over 50 editions of Postenews from 2018 to 2023

hrough news, reportages, interviews and focus on oste taliane, the aim of the new house organ is to recount topics involving the Company's people and business, from sustainability to logistics, passing through innovation, welfare and the constant attention to the territory G oste, on the other hand, was created in response to the Group's need to continue its mission of being close to its employees on information issues too, providing the most important news, and to tell the outside world about the Group's business inspired by the principles of sustainability and customer focus G oste is broadcast every day, Monday to Friday, and is streamed live on the oste it

website and on screens in ost Offices, as well as being visible on demand at tgposte poste it and for employees also from the company intranet or the oidi oste app

Work-life balance

+200%

of participants to the oste Mondo Welfare programme compared to 2022

n the area of contractual welfare, the oste Mondo Welfare programme was implemented for the fifth consecutive year, implementing the trade union agreement on the Results Bonus, which allows employees, on a voluntary basis, to convert all or part of their Results Bonus into welfare goods and services with specific social, educational, recreational and welfare purposes, accessing tax benefits linked to current legislation and additional company welfare credits for an ever greater appreciation of the opportunities linked to the programme and to

support the increased purchasing

power of employees and their families

he launch of the initiative was preceded by a process of listening to colleagues to understand their individual and family needs for the development of services based on the prevailing needs he 2023 programme achieved record results with participants tripling from last year to 28 thousand he success of the 2023 campaign was characterised by an improvement in the employee experience 28 thousand participants

with over 500 employees in the role of dedicated ambassadors

with new solutions available on the platform to encourage an informed choice of participation, by a capillary and multichannel internal communication plan, by training briefs addressed to staff to increase their knowledge of all the opportunities of the programme, and by information workshops involving all company structures to ensure maximum

territorial proximity n particular, the 2023 edition saw the preparation and active involvement of more than 500 dedicated ambassadors, who also disseminated the programme on the basis of their personal experience, giving continuity to the coaching of colleagues, together with promotional stands in the most staff-intensive organisational structures, as well as an expansion of the network of goods and services offered

n addition, the opportunities arising from current tax legislation were exploited, especially with regard to employees with dependent children in the area of fringe benefits and reimbursement of bills

88%

percentage of utilisation of the Bonus converted into welfare in 2023

All this led to a higher percentage of premium utilisation converted into welfare, averaging 88%, also higher than market trends and observers his indicator attests to the social and reward value recognised in the model, the effective support for the reconciliation needs and social well-being of people and the appreciation of the plurality of goods and services offered on the platform, in line with the needs and requirements of the participants

PosteXTe: he digital catalogue with all agreements dedicated to oste taliane employees

As part of oste taliane's initiatives to improve the well-being of employees and their families, " osteX e" was launched, a programme to purchase products and services at advantageous prices from carefully selected partners

n May 2023, the first digital catalogue was launched, with over 150 participating partners and, to date, continuously growing and updating offers

he partners and product categories within the programme allow for a broad coverage of the territory, encompassing a wide range of offers concerning, personal well-being and home care, essential needs related to mobility but also shopping, travel, sports, catering, leisure and entertainment

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Poste Italiane and parenting support

he company's commitment to support Active arenthood continues in line with corporate policy, which has led to diversified initiatives aimed at fostering gender balance, including through measures accompanying a change in the cultural paradigm in the sharing of family responsibilities, as well as the introduction of measures and paths aimed at enhancing the skills acquired during parenthood, which are also essential for professional growth he Company aims to generate a management alliance capable of overcoming dysfunctional cultural systems and biases to enhance inclusion and life balance in the family as well as at work

n continuity with previous years, the company osteBimbi crèche service remains active at the Rome and Bologna sites for the children of employees and a portion for users from municipal and third-party entities he service is provided for the children and grandchildren of Group employees he service is extended to more than 100 families with children from three to 36 months; an employee contribution from the company of 55% of the value of the monthly fee is provided he objective is to guarantee a flexible educational service in relation to work pace, to combine professionalism and quality in respect of the values expressed by families he distinctiveness of the educational programme is represented by an integrated relational approach on the part of all the players involved in the process, by attention to the values of environmental sustainability, by cross-culturalism (bilingualism) and by inclusion and educational alliance with families to foster dialogue through innovative communication methods here is also a counselling service within the nurseries to support families in dealing with their children's developmental processes, together with the structuring of a cycle of dedicated seminar programmes

he Company has set itself the objective of contributing to the strengthening of measures and pathways aimed at promoting active parenthood, also as levers to combat the phenomenon of denatality and to encourage an increasingly balanced distribution of care burdens n this context, 4 parenting support seminars were held for all employees, innovative and structured parental involvement programmes with a kick-off and 6 webinars dedicated to raising awareness of dedicated projects such as the Lifeed arents programme (about +33% compared to last year with a 40% representation of fathers), as well as the launch of gradual actions in relation to the return-to-work accompaniment paths provided for in the company olicy

o celebrate its 160th anniversary, oste taliane promoted an initiative, called " l ostroXcorso" (OurXcourse), which continued to develop in 2023, with the aim of keeping employees connected, sharing passions and creating a strong community he initiative is accessible through a specially created application available on the oidi oste app and intranet and allows people to share travel experiences, alone or in company, made by using a green vehicle or simply walking Connecting to the app allows to share and upload posts of trips and share with colleagues the roads, nature, views and places visited, enriching the description of the trip with phrases, kilometres travelled, type of green vehicle used

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023

Health and prevention

As part of its welfare policies, the oste taliane Group pays particular attention to the issue of health, also with a view to prevention

"Poste Centro Medico" oste taliane's healthcare facility for its eople

n 2023 the activities of oste Centro Medico, which with over 17 thousand healthcare services performed in three years, represents the centre of excellence dedicated to the care and prevention of oste taliane employees, their families and pensioners continued, with the aim of strengthening the well-being of employees in the workplace by offering medical services and preventive healthcare he Outpatient Clinic is coordinated by a Clinical and Healthcare Director and brings together a significant number of professionals working in the most important national healthcare facilities

oste Centro Medico offers qualified services and provides specialist examinations, instrumental and ultrasound examinations in 13 medical areas, as well as diagnostic imaging and other medical services he Centro Medico is also equipped with state-of-the-art medical equipment (state-of-the-art ultrasound scanners, mammograph, videodermatoscope, gynaecological unit, ophthalmic equipment, etc ) n particular, in October 2023, a programme dedicated to the prevention and early diagnosis of breast cancer was activated at the Outpatient Clinic in order to raise awareness among an increasing number of women

he Company always pays attention to people's well-being and promotes initiatives to inform, educate and support the health of employees and families With this aim in mind, a series of seminars for employees on prevention in cooperation with specialists from the oste Centro Medico started in 2023

Finally, the oste Centro Medico's initiative dedicated to blood donation, in collaboration with AV Comunale Roma, continued this year, contributing to the good of the entire community also with a clinical purpose as an act of preventive medicine

n line with previous years, in order to guarantee the health of staff and the protection of the environment, post officers have been provided with uniforms bearing the green O KO - X tandard 100 certification, which ensures that the product is carefully checked for ecological and health aspects n 2023, the distribution of the new uniforms, which combine sustainability, innovation, safety and the well-being of all employees who wear them every day, began for the staff of the production and delivery centres he new uniforms, in fact, have greater elasticity, breathability and have been produced, with a view to the circular economy, through the use of recycled components he design was made possible by incorporating direct input and experiences of employees gathered through an intranet-based survey of a sample of employees in the delivery centres and plants With regard to the DA given to post officers, on the other hand, over the years, oste taliane has developed a new feature that allows a voluntary request for help to be sent in the event of the need for medical intervention n this way, the device used by post officers also becomes a tool to increase safety at work through certain functions, such as the O function that allows, in the event of an emergency, to activate a call to the socalled " ituation Room" where a team of operators is ready to respond to distress calls n addition, before leaving for the delivery, a reminder function is activated on the smartphone reminding the post officer of the protective equipment he must always have, such as a jacket or high-visibility waistcoat Finally, twice a month, a pop-up reminds the postman to check the maintenance status of the vehicle and to report any service requests

Culture and education

oste taliane strengthens its corporate commitment to the development of new generations, actively contributing to the growth of young people through numerous initiatives including scholastic and professional orientation programmes, as well as activities aimed at developing soft skills and aimed at the children of employees and children also from vulnerable social realities

he Group, in fact, has implemented, for the fourth consecutive year, the " ext Generation" project dedicated to the children of employees and children from secondary schools located in fragile territories he programme aims to introduce young people to issues of innovation, diversity and social inclusion and to the professions of the future n this regard, several training meetings and workshops were organised throughout the year, with lessons in virtual

19

scholarships for deserving children of employees

classrooms to explore topics of relevance for the development of new skills, which involved the collaboration of professionals from various sectors, with whom the students had the opportunity to exchange ideas and reflections useful for their professional orientation his year, the project focused the children's attention on the value of the handwritten letter as a means of communication, an expression of freedom and a means of establishing contact with others An important phase of the project was the Creathon week, a creative marathon in which the students, divided into six groups, tried to design a postage stamp, which ended with a final vote, and subsequent awarding, by a corporate jury he course ended with participation in a summer camp, where participants came together for a week to realise the winning Creathon idea hey acquired new skills by learning to use graphics programmes, as well as a conscious use of artificial intelligence

n addition to the two-year " chool4Life 2 0" project, extensively covered in the previous chapters, AMcamp courses have been created which, dedicated to the children of employees and their families, promote innovation and the valorisation of the distinctive skills necessary to carry out future professions through a learning and gaming experience that stimulates comparison with new models ranging from coding, artificial intelligence, gamification, robotics and much more, whose only boundary is represented by creativity Furthermore, in 2023, two awareness-raising proposals called " ocial Media Lab" were created with the aim of bringing employees' children closer to understanding the evolution of identity on the internet and acquiring greater awareness of digital sociality

Also for the children of employees, two new editions of the "Future Lab" programme were carried out, aimed at fostering their integration into the world of work, stimulating reflection on their personal development plan on the ability to design a study and career path pecifically, the programme aims to bring young people closer to the world of work in a more conscious way, offering them support in their choices so that they can pursue paths in line with their skills and passions and learn about the main market trends related to the professions of the future

Lastly, with a view to promoting intercultural exchange, 19 study abroad scholarships were awarded in 2023 reserved for deserving children of employees, supported entirely by the Company, with the aim of enabling young people to confront international realities socially and culturally different from their own

ense of belonging

As part of the initiatives aimed at consolidating the sense of belonging, in 2023, 65 Group employees received the " tar of Merit for Work" recognition for having distinguished themselves due to their particular expertise and industriousness in the context of their work in the Company tars of Merit are awarded annually to workers employed by public and private companies, who are at least 50 years old and have worked continuously for at least 25 years Half the honours are reserved for those who started their activity from the lowest contractual levels and have distinguished themselves for their human and professional contribution to the company pecifically, the male and female employees were selected throughout the national territory and represent the majority of the professions present in the Company he honour carries the title "Maestro del Lavoro" (Master of Labour) and is conferred by Decree of the resident of the Republic, upon proposal of the Ministry of Labour and ocial ecurity

Financial and non-financial benefits for personnel

Financial benefits

Below is a list of the main financial benefits that are paid to executive personnel

• Life insurance and coverage for disability and invalidity: in the interest of the executive, oste taliane takes out an insurance policy that ensures an additional sum, with respect to the normal salary, in the event of death, permanent disability and injury occurring even if not during work;
• Healthcare: the Company contributes to the financing of the FA Healthcare Fund and other supplementary funds, so that services supplementary to the ational Health ervice may be recognised;
• Pension: the Company contributes to the financing of the R V DA upplementary ension Fund in order to provide pension benefits in addition to the compulsory pension

he main financial benefits due to non-executive personnel are listed below

• Parental leave: more favourable treatment than that provided for by law (art 43 ational Collective Labour Contract);
• Healthcare: the Company provides a supplementary healthcare plan with a contribution paid by the Company for the "Basic" package (art 79 ational Collective Labour Contract);
• Pension: payment of contribution to the Fondo oste by the Company (art 79 ational Collective Labour Contract)

Non-financial benefits

o complete the remuneration package, oste taliane Group provides executives and certain types of managers with additional non-financial benefits, in compliance with applicable regulations and taking account of market practices hese benefits are subject to specific guidelines, which require the application of common criteria depending on the uniform category of employee concerned xamples of non-financial benefits attributed to executives and certain categories of middle managers are the company car for mixed use and the medical check-up

Relations with social partners

LE PA

oste taliane, through regular meetings with the rade Unions (OO ), maintains constant dialogue with workers' representatives, not only with regard to ordinary management but also in the event of major organisational changes, with the aim of placing the well-being and protection of workers' rights at the centre herefore, it stipulates agreements compliant with the ational Collective Labour Agreement (CC L) and the Consolidated Law on Representation, aiming to encourage the creation of a positive corporate climate and ensuring compliance with current legislation he Group implements all the activities envisaged by the ndustrial Relations ystem, outlined in Chapter of the CC L of oste taliane p A ( nformation, Consultation, articipation, Bargaining), also in order to accompany the actions envisaged in the Company and Group trategic lan n this way, the Company ensures adequate and fair solutions on issues that can have significant impacts not only on the organisation and the business, but also and above all on human capital, which is considered a fundamental element

n compliance with the provisions of current legislation, oste taliane guarantees impartiality and independence in the promotion of its relationships with rade Unions, as established by the Group's Code of thics, and at the same time undertakes to preserve the well-being and guarantee the protection of the rights of its workers, ensuring their freedom of association and collective bargaining

Poste Italiane's commitment to ensuring the well-being and protection of its employees, as well as to maintaining an ongoing dialogue with the social partners, underlines the importance the Company attaches to human capital and the creation of a healthy and collaborative working environment. This approach is crucial for building positive relationships and achieving business goals.

oste taliane refers to the national collective bargaining, which provides for a specific procedure of discussion between the Company and the national rade Unions stipulating the CC L in the event that significant organisational changes (such as company reorganisation and/or restructuring and/or transformation processes) entail social consequences, with repercussions on working conditions

100%

of employees covered by collective bargaining agreements

n this regard, the Group is required to provide prior information to the ational

rade Unions stipulating the CC L, indicating the date of the start of the discussion, in order to seek possible solutions to manage the social effects he negotiations shall be completed no later than 25 working days, including aturdays, following the date set by the Company for the first meeting During this period, the rade Unions must refrain from any direct action, while the Company cannot implement the planned projects After 25 days, if the outcome of the discussion is negative, the arties may make their own autonomous decisions; in the event of a positive outcome, on the other hand, the Company shall provide adequate information to the competent territorial structures of the rade Unions rior to the start of discussions at the territorial level, the R Us (Unitary Labour Union Representatives) must be consulted, a phase which must be completed no later than 13 working days, including aturdays, from the date on which the hypothesis of agreement was signed ubsequently, the arties shall meet at a territorial (regional) level to carry out a joint examination, to be concluded within 7 working days, including aturdays, following the end of the consultation of the R Us

he continuous dialogue and constructive relationship between the Company and the ocial artners are a distinctive and significant element in the Group's growth and evolution strategy he continuity of the dialogue with the rade Unions is guaranteed through an important information and negotiation activity with the social partners conducted by the ndustrial Relations function he most significant results of this activity are manifested in the signing of specific agreements with the rade Unions, concerning both the matters expressly indicated by the ational Collective Labour Agreement of 23 June 2021 (CC L), and additional topics relating to the achievement of the objectives of the lan that may have regulatory and/or managerial implications on staff

he ational Collective Labour Agreement

oste taliane's commitment to promoting the well-being of employees and guaranteeing the protection of their rights, both during ordinary management and in phases of change in the company organisation, is evident through the constant dialogue with workers' representatives, a central aspect in the organisation and management of the Group herefore, the Company is committed to a constant dialogue with the rade Union (OO ), ensuring impartiality and independence in the promotion of relations in compliance with current legislation and guaranteeing, at the same time, the protection of rights, freedom of association and collective bargaining

n this regard, in 2021 the Group renewed the ational Collective Labour Agreement (CC L), valid until 31 December 2023 he Agreement, which introduced significant improvements both in the economic area and in the organisation's regulatory framework, covers the entire non-managerial staff of the oste taliane Group and strengthens the focus on the defence of workers' rights, their security and economic stability he concept of Corporate ocial Responsibility is a fundamental principle for the Company, through which it is possible to combine the Group's development objectives and economic results with the respect for social and environmental values, enhancing the continuous and constant contribution of human resources

Main agreements signed

On 2 March 2023, a Memorandum of Agreement on Voluntary Mobility (transfers on request) was signed whereby the arties acknowledge that any transfers - both at national and regional and provincial level - will be carried out taking as a reference the 2022 rankings drawn up on the basis of the Agreement of 4 May 2021 On 20 June 2023, a further Memorandum of Agreement was signed, which - tracing the framework of the previous agreements - provides for a threeyear term instead of a two-year term, and an increase in the minimum length of service and length of stay in the region to be eligible for mobility, raising it from 6 to 12 months as from 2024

With the Agreement of 1 February 2023, the Company and the rade Unions defined, with regard to "Back Office ervices", a rationalisation and a new micro-organisation of the erritorial Depots through a reduction in the number of sites (from 10 to 5) and the elimination, in the course of 2023, of the Depots in Bari, Bologna, Genoa, adua and urin he related employment effects will be dealt with progressively when the individual depots are closed n addition, a lanning and Operational Control pecialist role was introduced to support the Depot Manager A new credit management model was presented, characterised by dedicated supervision and a single interface with the customer, to reduce overdue loans and make the whole process more efficient n this regard, the arties agreed to proceed with the immediate testing of this model and to meet again by May 2023, to assess its progress and to analyse in detail the operational aspects related to the implementation of the organisational model A number of actions were also defined to merge and relocate sites of the erritorial Centres, with the aim of optimising processing and consolidating the supervision of document management services through the establishment of a single facility for the sites in the same city he resources concerned will continue to perform the same activities and, where the conditions are met, they will be granted the benefits provided for in Article 38 of the current CC L n relation to the services of "Customer Assistance", the company presented the Value Assistance service that will provide support in the purchasing phase of products/services and interact with customers through sales proposition initiatives n order to best implement the new service, the arties acknowledged the need to complete

dedicated training courses for the personnel involved With regard to nformation echnology services, and especially with reference to the echnology oles, the operational model and the micro-organisation model were redefined, also through the introduction of specific support figures for the territorial technical structures Field echnical ervices were introduced with the aim of ensuring a better coordination of technical support interventions and offering a quick response to business structures Finally, the entry into force of the remodulated timetables based on the new organisation of the echnological oles characterised by a unique structure at a national level with a presence also on aturdays has been foreseen he parties agreed on the need for specific meetings at regional and national level to best accompany the reorganisation processes of the Digital, echnology & Operations function

n line with previous years, oste taliane signed agreements on labour policies, realizing its commitment to relations aimed at the welfare and protection of workers' rights

On 22 June 2023, complementing the year 2023, an agreement was finalised outlining further Active mployment olicies interventions, providing for part-time stabilisations amounting to 1,050 F , 30 conversions from part-time to full-time at the etwork odes, and an increase in staff in the ost Office etwork amounting to 950 F he arties committed to meet at the national level by January 2024 to assess the definition of the numbers and a new regulatory framework of the agreement on 2024 Active Labour olicies he Company confirmed the activation of the special elastic clause pursuant to Article 23 paragraph X of the current ational Collective Labour Agreement

On 24 May 2023, an overall update was provided on the status of implementation of the main projects defined in the ost Office networks area (Hub& poke roject, olis - House of Digital ervices, etc ) in respect of which the arties agreed to implement specific management actions of active labour policies aimed at accompanying their full implementation, favouring opportunities for the development of personnel skills and the achievement of the targets defined in the Corporate Development lan pecifically:

• with regard to the Hub& poke roject, starting from June 2023, the application allowing Hub ost Office Managers to autonomously replace their internal resources has been extended to all Hub Offices and, in addition, the arties have agreed to strengthen the training activities of Hub DU , which will have to ensure - in agreement with the reference Branch and in relation to the area managed - the necessary supply of means and tools at poke Offices, the planning of resource absences and their replacement in ost Offices where the need arises, as well as commercial coordination on front-end products and services;
• with reference to the olis roject House of Digital ervices: the parties shared the project's progress, both with reference to the new ost Office model and the company spaces to be allocated to co-working With reference to the subsequent implementation phases of the project, the arties have scheduled four-monthly meetings for a joint update on the main elements, subject to specific briefings in the event of significant new developments

On 2 March 2023, the Company signed an Agreement with the rade Unions, in force until 30 eptember 2023, which regulates the application of agile working in oste taliane and in the Group Companies applying the ational Collective Labour Agreement (CC L), renewed on 23 June 2021 imilarly, in the memorandum of agreement of 14 eptember 2023, the aforementioned arties agreed to extend the use of Agile Working until 31 December 2024 n particular, agile working is allowed for a maximum of 2 days per week and 9 days per month he agreement also confirmed the use - as of January 2024 - of agile working for training purposes only for personnel assigned to operational activities Agile working is a useful tool for the Company to optimise the organisation and use of resources in a way that is more respectful of environmental sustainability and collective well-being, by limiting home-work journeys, reducing traffic and cutting emissions Moreover, this working mode is also considered a welfare tool, as it allows not only to combine personal and family needs with

professional ones, but also to protect employees who are in particularly fragile conditions, safeguarding the company's production and quality standards

On 1 August 2023, the memorandum of agreement on the erformance Bonus were signed for oste taliane p A and the Group companies, the economic and regulatory validity of which is for the two-year period 2023/2024 he agreement provides for a 4% increase in average unit bonus amounts compared to 2022 Furthermore, exceptionally and for 2023 only, in order to appreciate the commitment of the employees of oste taliane and the Group Companies as well as to mitigate the effects deriving from inflation, was the disbursement - in ovember - of an additional and extraordinary bonus, equal for all employees, of €1,000 n order to further enhance the importance of the professional contribution of individual resources to the achievement of company results, a bonus (an additional €50 to the individual value of the Bonus) was introduced for employees who did not take any leave of absence in the year of reference, and the incidence of sickness events on the determination of the sum to be paid as a performance bonus to each worker was also revised n addition, the possibility of converting all or part of the bonus into welfare has been confirmed, simplifying and making more advantageous the mechanism of credit recognition by the company against the converted amount

ubsequent to the understandings of 2 August 2022 and 21 ovember 2022, in which the arties outlined the organisational and management guidelines by which the organisational revision processes of some important production areas of the Mail, Communication and Logistics ( CL) function are implemented, on 25 May 2023, the arties agreed to sign meeting minutes regarding the reorganisation of in-house processing he focus of the meeting was on the reinforcement of the Business Lines dedicated to closing activities, providing for the introduction of the figure of the LBC (Closing Business Lines) which will ensure, in addition to mail delivery, also the closing activities of the Centres he conversion of 547 Business Lines, already present in the architecture of the current organisational model, into Closing Business Lines, all to be covered by permanent staff, as well as the introduction of new time grids for aturday shifts in the Logistics Centres and Distribution Centres, were also planned

Following the general elections of 28 and 29 March 2023 of the Unitary rade Union Representatives (R U) and of the Workers' afety Representatives (RL ) of the Companies oste taliane p A , ostel p A , oste Vita p A oste Assicura p A , oste ay p A and exive etwork r l , on 20 June 2023, meeting minutes were signed between oste taliane p A (also representing the aforementioned companies) and the rade Unions, in which the arties, at the conclusion of the electoral round for the R U/RL elections of 28 and 29 March 2023, acknowledged the 81 10% turnout of those entitled to vote, and also validated the election results On 17 January 2023, the arties, without prejudice to the provisions of Law 300/70 and the ational Agreement of 21 March 2000 whereby the heads of the R U - elected in roduction Units employing more than 200 employees - are entitled to paid leave equal to 96 hours per year, in order to allow each R U to benefit from the above-mentioned pro-rata leave, limited to the year 2023 and for roduction Units employing more than 200 employees, have provided that each R U currently in office shall benefit, until the date on which the new representatives take office, from 1/3 (32 hours) of the 96 hours of leave available to him/her imilarly, the arties provided for the application to Workers' afety Representatives who, only for the year 2023 and until the date on which the new representatives take office, will be entitled to 1/3 (10 hours) of the 30 hours per year per capita of paid leave Following the elections on 28 and 29 March 2023, the members of the R U/RL who are validly elected and appointed will be able to take the remaining 2/3 hours of R U and RL leave for the year 2023 With regard to R U elected in production units employing up to 200 employees, it has been provided that the provisions of article 2 of the Agreement of 21 March 2000 be applied, with the annual entitlement of leave hours being re-proportioned to the extent of 1/3 for incumbent R U and 2/3 for R U to be elected

On 17 October 2023, the arties met in order to carry out some in-depth discussions on the process of organisational reorganisation of the focal points within the ersonnel Administration Branch More specifically, the Company, in recalling the intervention rationales that inspired the adoption of the organisational reconfiguration of personnel administration processes, illustrated to the rade Unions the main expected benefits in terms of:

• recomposition of activities to eliminate operational redundancies;
• reduction of lead times in process processing;
• integration and enrichment of skills by operators;
• increased operational and service standards also as a result of the introduction of new technology platforms to support activities

n line with the spirit of solidarity that characterises the work of the oste Group, on 25 May 2023, the Memorandum of Agreement was signed between oste taliane p A , also representing the Group Companies and the rade Unions, which provides for the possibility for employees to join the so-called "Ora tica" solidarity initiative in favour of the Civil rotection committed to helping the populations of milia-Romagna affected by the recent flood events, which consists in the donation of the equivalent of an hour of work through a deduction from pay slip he Company undertook to pay to the Civil rotection an additional amount equal to that collected from employees he same solidarity initiative was undertaken in favour of the region of uscany affected by extraordinary atmospheric events by virtue of the Memorandum of Agreement signed between the Company and the rade Unions on 27 ovember 2023

As part of the work of the O Committee, on the occasion of the meeting on 20 March 2023, the ational Joint Committee for Occupational Health and afety (O ), in order to follow up on the new process of detection and assessment of workrelated stress ( LC) risk, identified - by draw - the workers who will be part of the Regional LC Assessment eams, whose task will be to proceed with the compilation of the A L check list

n the context of the O work of 20 March 2023, the Company, in view of the positive evolution of the Covid 19 pandemic crisis - which in fact has led to the re-establishment of the processes and procedures in place in the pre-pandemic period in practically all production and social sectors informed the O that - always in compliance with the principle of precaution and protection aimed at ensuring the appropriate levels and standards of safety in the workplace - a gradual process of reviewing the prevention measures adopted in the Company in the initial phase and during the evolution of the pandemic crisis to counter the spread of the virus will be initiated

All of the Agreements and Understandings adopted have shown the substantial effectiveness of the provisions and regulations contained therein roof of this is the fact that no agreement between the arties has recently been terminated and that the majority of rade Union Agreements always find the consensus (signature) of all six signatories of the CC L From the Company's point of view, the various agreements signed have made an important contribution to the realisation of the plan's objectives

articipatory organisations with mixed composition (members from oste taliane and rade Unions)

ogether with the rade Unions, oste taliane has set up joint bilateral bodies at national level regarding issues that are also relevant in terms of sustainability, including:

• Comitato per l'Attuazione dei Principi di Parità di Trattamento e Uguaglianza di Opportunità (The Committee for Implementation of the Principles of Equal Treatment and Equal Opportunities), established on 27 February 2024, with the objective of "implementing and strengthening a culture that pays attention to diversity, including gender diversity, through positive actions aimed at creating examples of good practice within the Group and removing obstacles that actually prevent achievement of equal opportunities" n this context, the Committee addresses issues relating to the integration and inclusion of disabled people, as well as those regarding other factors of discrimination;
• Ente Bilaterale per la Formazione e Riqualificazione Professionale (the Bilateral Agency for Personnel Training and Retraining), through which the arties jointly promote activities in the field of training and retraining, with regard to the provisions of the Consolidated Law on Occupational Health and afety, and also with reference

to any processes of reorganisation/restructuring/transformation of the Company, or the introduction of

• Organismi Paritetici per la Salute e la Sicurezza sui Luoghi di Lavoro (The Joint Bodies for Occupational Health and Safety) also continued activities relating to the uniform and correct application of the guidelines regarding occupational health and safety, in particular concerning issues relating to the new work-related stress risk assessment criteria with the aim of "implementing measures to improve occupational health and safety" Moreover, there is the Osservatorio aritetico sulla anità ntegrativa (Joint Observatory on upplementary Healthcare), with the role of proposing and monitoring the services offered by the upplementary Healthcare Fund

Occupational health and safety

technological innovations;

he oste taliane Group considers the protection of health and safety at work a fundamental value, which all people must be inspired by in carrying out their daily activities he Company, in addition to identifying organisational responsibilities and adopting specific policies to ensure adequate coverage of all aspects relating to health and safety at work, constantly undertakes to adopt all necessary measures to reduce accidents, injuries at work and professional diseases Moreover, through prevention policies and programmes and information and awareness campaigns, it promotes people's psychophysical well-being As mployer, the Group C O assumes the highest role of responsibility and supervision for

health and safety issues in the Company he Board of Directors approves the olicy and, through its Board committees, oversees the appropriate management of the associated risks and compliance with the principles

he integrated policy and the Group health and safety policy outline the main elements of the workplace health and safety management systems adopted, including:

• continuous assessment of risks and definition/update of related rules and procedures;
• ensuring that innovations and changes in work processes are always accompanied by occupational health and safety objectives;
• timely adaptation to all regulatory changes and updates;
• identification of roles and responsibilities within the organisation and allocation of the necessary resources for planning and implementing the programmes aimed at achieving the objectives;
• effective and transparent communication that ensures dissemination of any information that might be useful for prevention purposes, including cooperation and coordination measures with contractors;
• periodic review of the management system by top management to assess its correctness and effectiveness with a view to continuous improvement;
• prioritisation of actions to be implemented in order to manage the occupational health and safety risks identified during the assessment phase, and the subsequent integration of action plans with quantitative targets to address these risks

tarting with the integrated policy and the Group policy, each employer has approved the policy for its production unit, making it available to all workers For the purposes of the Occupational Health and afety Management ystem ( G L), the responsibility of each single production unit of the arent Company and the main Group Companies is attributed to its employer Within the arent Company, employers are supported by the Corporate Affairs/Corporate rotection function,

84,602

employees trained in workplace safety in 2023

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which oversees, at Group level, policy, coordination and control activities relating to Health, afety at Work and the nvironment, taking care, in particular for the arent Company, of the design, implementation and dissemination of Occupational Health and afety and nvironmental rotection Management systems, in accordance with the current regulatory framework

he Group gives significant priority to occupational health and safety issues n this regard, oste taliane has defined quantifiable targets for Business Unit managers, which are evaluated on an accident reduction target he Company has also set up dedicated teams with the specific task of monitoring the relevant data on a daily basis for the purposes of the defined quantitative targets

Fostering and encouraging the establishment of a corporate culture of safety in all organisational layers of Poste Italiane is a key element in reducing accidents and promoting constant progress in the management systems adopted.

Among the main objectives pursued by oste taliane, the constant awareness and involvement, in relation to the issue of Health and afety at Work, of all those who operate within the Group takes on crucial and priority importance articular emphasis is placed on the dissemination and strengthening of the culture of safety within the territorial operational centres (distribution centres and post offices) and the related coordination structures n addition, the Company is committed to the continuous improvement of its Management ystems, through the planning and execution of initiatives aimed at implementing the principles set out in the Occupational afety olicy, and in the periodic review for the definition of new ambitious objectives

For several years now, oste taliane has been actively engaged in the objective of mitigating the accident phenomenon, focusing in particular on the sectors most vulnerable to road traffic risks, such as logistics and delivery, including postal mechanisation and distribution centres he constant monitoring and control of said phenomenon contributed, also in 2023, to the implementation of various initiatives on prevention and on occupational health of workers and protection of the workplace From this point of view, the Occupational afety Management ystems, which have already been adopted for some time in accordance with the regulations in force, confirm the conviction that an effective management system makes it possible both to manage the safety of workers in an organic and systematic manner and to implement and develop the company's safety policy by monitoring the risks of all operational processes oste taliane, aware that the continuous improvement of OH Management ystems requires the involvement and participation of all workers, each based on their assigned roles and responsibilities, is committed to promoting and strengthening the culture of safety in a systemic and participatory approach

Among the activities undertaken to pursue the objectives, we highlight the continuous training, awareness and involvement of staff on O H issues, the interventions aimed at the plant-structural improvement of the sites, the constant commitment to continuous improvement and maintenance of the certification of the Management ystems, as well as the regular assessment of the risks inherent to the processes and workplaces, the monitoring of the implementation of the mprovement lans referred to in the risk assessment and the constant checks of compliance with the requirements established by current legislation

n this regard, in order to implement the upskilling and reskilling process addressed to Managers, consistent with the updates introduced by Law 215/2021, with the aim of improving the level of awareness of the role, performance and positive impact on the overall system of afety in the Workplace, during 2023, a specific survey was carried out addressed to the entire target audience to detect the need for information, which led to the subsequent creation of a vademecum containing useful information on the tasks that the law provides for Managers he Vademecum has been transmitted, in digital format, to all the approximately 14,000 Managers in the Company

oste taliane Group allocates budgets each year dedicated to the implementation of improvement plans for occupational health and safety aspects n particular, the Company invests heavily in the maintenance of its real estate and in the continuous improvement of its plant and structural aspects qually important are the resources deployed for the management and maintenance of the company fleet, for the implementation of training, information and education campaigns, as well as those for OH audits/controls, health surveillance, and the development and maintenance of systems/applications supporting the management of the issue

During the risk assessment process, the Group examines all situations that could constitute a potential danger in relation to work processes and workplaces and, after having identified the relative potential to cause damage, proceeds to evaluate the level of risk associated his assessment takes into account the actual methods of carrying out work activities and the exposure of personnel, as well as any protection measures already implemented in compliance with the criteria defined by current technical regulations, technical standards, good practice rules and company guidelines n particular, the Company considers all foreseeable and objectively present hazards related to work activities, those arising from the correct and normal use of equipment/machines/plants, those foreseeable due to exceptional conditions and those due to possible malfunctions or failures he systematic control of all potential dangers applicable and related to work places and processes is guaranteed through the preliminary compilation of a check list included in the company procedure "Risk Assessment Document Management" he mployer refers to the skills of the revention and rotection ervice to supervise and carry out the risk assessment with the consequent drawing up of the Risk Assessment Document (DVR) as well as of all the relevant specialist technical reports

n particular, regarding the management of health and safety risks at work, a process based on dialogue and the continuous exchange of information between human resources, managers and the various Business Units is implemented On a quarterly basis, the function responsible for control coordinates with the risk specialists and, through them, also with the risk owners, in relation to the monitoring activities on the trend of the risk indicators and the treatment actions relating to the op Risks regarding health and safety at work he result of the activities is represented in quarterly integrated risk monitoring reports and presented to senior management and the Control and Risk Committee (CCR) ubsequently, we proceed with an annual reporting phase of the activities, consolidating the contributions coming from the various control functions within the "Risk and Compliance Report" his is presented to the Corporate Bodies and op Management, offering a concise and integrated overview of the initiatives promoted and/or introduced during the year in the various areas of corporate operations, under the coordination of the Joint General Manager, as well as the main activities and interventions carried out by the structures of the function to ensure the implementation of appropriate safeguards, tools and organisational structures for the continuous strengthening of the nternal Control and Risk Management ystem and for the management of relevant compliance and sustainability issues

he Group, in addition to the mandatory training provided to the entire company population, disseminates in a controlled manner the afety Operational nstructions ( O ) in which the dangers associated with the relevant work processes are detailed, as well as the organisational, preventive and protective measures for the mitigation of the corresponding risk level Within them, the O include the obligation (deriving from Legislative Decree 81/08) for workers to report the presence of potential dangers or risk situations at the workplace to the person in charge and/or the competent Workers' afety Representative, as well as containing a detailed description of the roles and tasks of the main players in safety management imilarly, the Compliance Officers and Managers are required to collect such reports and to act in accordance with the company procedures identified for the management of any critical issues, respecting the timing and methods corresponding to the level of risk associated with them Given the relevance of this issue, oste taliane has implemented information, education and training mechanisms for all employees, in order to adequately manage, in accordance with both the protective measures set out in the Risk Assessment Document and the corporate reference, any work situations from which injuries or occupational diseases could result

he Company, in compliance with specific processes defined within the adopted health and safety management systems, conducts near-miss and accident analysis at work With a view to continuous improvement, each production unit of the arent Company and the Group companies carry out constant accident monitoring activities, with particular attention to the accident phenomenon, in order to identify - or manage - the triggering factors

By means of the three-year moving average, which considers accident data from 2017 until 2023, before and after Covid, it is possible to observe the development of the number of occupational accidents of the arent company his metric, in addition to mitigating the distorting effects caused by exceptional events (such as pandemics) in the calculation of the accident trend, makes it possible to assess the effectiveness of management actions aimed at containing the risk factors controllable by the Company (such as the progressive adoption of the Lean methodology in the sorting centres), with a medium to long term time horizon

Health urveillance is carried out in the Group by a team of company doctors who, within specific territorial perimeters, carry out the provisions of article 41 of Legislative Decree no 81/08 (visits, inspections, periodic meetings, spot consultations) he network is coordinated by a competent doctor who provides support the mployers and the revention and rotection ervice for the governance aspects of health surveillance he Risk Assessment Document for tabulated risks, pursuant to Legislative Decree 81/2008, as amended, and the Group's five Health rotocols detail the activities subject to health prevention measures:

• specific risk of manual handling of loads;
• specific risk from exposure to display screen equipment;
• night work;
• no addiction to narcotic and psychotropic substances, no alcohol dependence;
• specific risk from site inspections

For workers who carry out tasks/activities with exposure to a specific risk (listed or assessed), a health surveillance programme is implemented, which includes medical visits, supplementary health and toxicological checks

During 2023, Health urveillance activities were carried out continuously, throughout the country, in compliance with health protocols and current regulations

he Workers' afety Representatives (RL ), identified among the main players in the management of health and safety in the workplace, are chosen directly by the workers within the framework of the company's trade union representatives, as provided for by Legislative Decree no 81/08 he RL are regularly consulted not only following the implementation of new risk assessment methodologies, but also on the occasion of organisational or process changes that may impact occupational health and safety, as well as during the drafting of the Risk Assessment Document he adoption of adequate, timely and preventive consultation with the RL allows them to obtain fundamental advice for the precise fulfilment of legislative obligations and to promote the continuous improvement of workers' health and safety he consultation may involve all the Workers' afety Representatives of the national territory or only those of a specific territory

he dialogue between employers and workers, actively promoted by the Group, takes place through the ational Joint Observatory (O ) and the Regional Joint Bodies (O R) hanks to these committees, in which national and territorial, employer, trade unions and RL representatives participate, the Company involves all stakeholders in order to address specific issues related to health and safety arising also from workers' reports, share occupational health and safety initiatives and start the process of consulting RL on risk assessment herefore, the meetings of the Joint Bodies are convened in response to needs that arise and do not follow a pre-established schedule, thus ensuring flexibility in the management of dialogue and the timely handling of relevant issues

Over the years, oste taliane has developed a multi-year plan for the adoption of health and safety certifications throughout the Company n 2021, this plan led to the completion of the certification process for all production units of the arent Company n line with the strategic plans and objectives established, during 2023, Occupational Health and afety Management ystems compliant with U O 45001 were kept active, with the relevant certifications, in all the main production units of the oste taliane Group, with 100% coverage Group companies also adopt OH Management ystems certified by accredited certification bodies As of 2023, the main Group companies certified according to the U O 45001 standard are: G p A , osteVita p A , osteAssicura p A , DA p A , ostel p A , oste Air Cargo r l , Bancoposta Fondi p A , ostepay p A oste taliane's goal is to maintain this certification in all of the production units of oste taliane p A and of Group Companies

Health and afety at Work audits and controls are systematically conducted not only by each production unit within its own OH Management ystems, but also by Corporate rotection, transversally, in each production unit of the arent Company and in the Group Companies pecifically, the activities carried out in 2023 by the latter consist of:

• audits on Occupational Health and afety/ nvironment Management ystems with the aim of verifying that the management systems adopted in the company comply with the requirements of the reference standards and that they are correctly implemented and maintained;
• technical audit, control activity aimed at analysing and evaluating the state of OH compliance of sites, with particular reference to plant/structural aspects

o monitor and control the effectiveness of the OH policies adopted, oste taliane uses several tools, including:

• G LA (Computer, Occupational afety and nvironment Management);
• latforms for training management;
• G W (Digital Accident Management);
• A ( afety elf-Assessment);
• Real Gimm (share for the management of maintenance impacting OH );
• File Maker (share for the management of real estate works impacting OH );

• DVR ( lectronic management of Risk Assessment Documents);
• ( mergency Management oste taliane);
• Green ass (G Control ystem)

he performances and objectives established are subject to constant monitoring and review during the planned review of adopted OH Management ystems

Finally, it should be noted that despite the end of the state of health emergency, which occurred on 31 March 2022, and the improvement in the epidemiological evolution, linked above all to the notable reduction in the damage expected in the event of contagion, during 2023, the Company attention to Covid anti-contagion measures however remained high n particular, the Company conducted communication campaigns aimed at continuously raising staff awareness on the adoption of correct behaviours aimed at risk prevention, and distributed protective respiratory masks at the request of workers

n any case, the Committee for monitoring the implementation of the described protection measures, established by specific agreement within the ational Joint Observatory, remains active

Poste Italiane Group Report on Operations at 31 December 2023

Security in Logistics

With specific reference to the logistics and delivery sector, which presents greater exposure to risks associated with road traffic, oste taliane has implemented various initiatives, including constant risk assessment and updating of risk assessment documents (DVR) in response to reorganisations in the sector of the delivery

t is planned to record any type of event (from unsafe condition to unsafe action, medication and near miss) in a new computer application, - WO, with an in-depth analysis of the dynamics of accidents, as well as to increase the use of the sanctioning lever in cases of noncompliance with existing procedures/instructions

With the aim of disseminating information on the accident phenomenon throughout the territory, daily, weekly and monthly reporting has been established at central level Furthermore, in order to conduct an adequate analysis of the phenomenon and promote the sharing of best practices, the presence of a monthly ecurity Committee with all the Logistics Macro Areas (MAL) coordinated by the central ecurity and nfrastructure structure is highlighted

As regards the reduction of accident events, the Group has adopted substantial measures, such as the replacement of all equipment that constituted sources of potential accidents with new equipment, such as Automated guided vehicles instead of man-on-board trolleys and/or pallet trucks

Lastly, thanks to constant innovation, oste taliane uses modern types of sorting equipment ( O 2K, XM , olysort, asy orter) and has introduced the "App afety" function for the post officer's DA that allows:

• self-certification by workers of the worn prior to the start of outdoor work;
• increasing the risk awareness of post officers by involving them in the detection of unsafe conditions, near misses and accidents;
• promptly informing post officers of imminently dangerous conditions;
• speeding up the dissemination of information/news/procedures related to occupational safety and the environment

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

7.11 DIVERSITY AND INCLUSION MAIN RELATED TYPES OF CAPITAL

Main types of capital	Objectives	Indicator (KPI)	Target	Baseline	Implementation status 2023	Outcome
	Strengthen the presence of women in
	management succession plans, instrumental to increasing the presence of women in positions of greater responsibility in the Group	% of fornale succession candidates	45% by 2024	2021	·43%
	Invest in the internal development of STEM skills and roles and the promotion of cultural reference models from a pluralistic, gender equality perspective, with male and female role models	No. of awareness-raising campaigns No. of editions within the framework of initiatives for the younger generation % role models	2 by 2023 10 by 2023 +50%by 2023	2021	.2 -28 ·+110%
	Promote intergenerational matching between mentor and mentoo within the mentoring programme	% matching of mixed generation pairs	40% by 2024	2022	67%
	Extend caring and listening measures for colleagues with chronic and/or serious Ilnesses or who are in vulnerable and fragile situations, to accompany their inclusive return and support their mental well-being	% of the detected target reached by the caring measures identified	40% by 2024	2022	47%
	lmplomentation of campaigns and awareness- raising actions on issues of labour inclusion and LGBTQ+ rights	No. of awareness-raising campaigns and/or welfare in 2 by 2023 support of social parenting	2021	15 news items on the subject (communication cəmpəign) - 1 "İn altre arole" podcast Training -1 webinar on LGBTQI+ - 1 LGBTQ+ online course
	Take pervasive actions to implement the diversity and inclusion strategy through envisioning workshops, meetings and thematic awareness-raising ovents integrated Into work processes and relations	No. of initiatives (workshops, D&I meetings, thematic events)	28 by 2024	2021	53
	Contribute to the strengthening of measures and pathways to promote active parenting, including as levers to combat the falling birth rate, and to foster an increasingly balanced distribution of care burdens	Active Parenting Policy formalised No. of interventions carried out	Active Parenting Policy formalised by 2023 2 by 2023	2021	Publication of the Active Parenting Policy 6	4 EDUCATION
	Promote the creation of Employee Resource Groups (ERGs) among employees with common interests on diversity and inclusion issues to set up open exchange and discussion groups within the dedicated community	No. of Employee Resource Groups (ERGs)	2 by 2024	2022	No, 3 ERGs inibated (Generations LOBTC+ Vulnerability)	5 EQUALITY
Human Social-relational	Promotion of an intercultural vision in the company for tho dovelopment of inclusive solutions through the implementation of participatory processes characterised by the coexistence of a mix of different cultures among employees	No. of regional cases to which the pilot project was extended	2 by 2023	2021	Implemented participative process through the development of a training plan with intercultural company testimonials hired from all territories	10 INEQUALITIES
	Increase the implementation of initiatives that use inclusive formats to facilitate accessibility for people with disabilities or special educational needs	No. of educational formats for Group employees	1 by 2024	2022	Delivery of an online course adopting the first format
	Strengthen the Employee Corporate Volunteering project through the development of a new engagement platform and the definition of social programmes integrated with the corporate sustainability strategy	No. of engagementand training plans No. of programmes with social value	1 by 2024 3 by 2024	2021	Creation of Volunteering Community Multi-subject communication campaign with omnichannel plan
	Openness to community welfare logic in synergy with local communities, providing corporate welfare services to support the vulnerabilities of employees and citizenship	No. of initiatives/services activated	2 by 2024	2021	Release of redevelope d property in Bologna office 1 Local scouting for design of services to bo activated concluded
	Implomentation of the framework to foster digital inclusion, promoting equal opportunities and ensuring fair and inclusive access for all	Framework for accessibility	mplemo framework by 2025	2023	New
	Promoting the strengthening of accessibility measures and assistive technologies also through the activation of listening and involvement paths for staff with disabilities	No. needs Surveys	1 Survey by 2024	2023	Now
	Sport & Inclusion: valorisation of athletes with disabilities in order to assess possible participation in inclusive external sporting ovents. The initiative is also potentially aimed at employees who want to support/accompany athletes with disabilities	Communication plan to support the initiative Enga aging the community to identify opportunities for external participation	Plan and communit engagement by 2024	2023	Now
	Increase the implementation of training initiatives that use inclusive formats to facilitate accessibility for people with disabilities or special educational needs	No. of training initiatives with the application of the "Accessible Training" format starting with transversal courses	At least 5 releases by 2024	2023	New
	Strengthen nationwide caring and listening measures for colleagues in vulnerable and fragile situations to support their mental and motivational well-being	Nationwide activation of caring and listening services	Activation of services by 2025	2023	New
	Promoting and disseminating corporate procedures and internal document systems geared towards inclusive and gender-neutral written language	Awareness Guidelines for Internal Procedures and Documentary Systems	Guidelines by 2025	2023	Nev
	Introduction of policies and measures to counter ageism through valorisation and engagement campaigns focusing on the senior population	No. of age management programmes	1 age management program by 2025	2023	New
	Realisation of training, organisational and inclusive courses and interventions for the valorisation of neurodiversity in a "Dyslexia Friendly" company	No. of dedicated courses/interventions	3 dedicated courses/interventions by 2025	2023	Now
	Promotion of Employee Resource Group (ERG) - activities also with regard to LGBTQ+ inclusion initiativos	No. of measures/interventions caried out	2 measures/interventions camed out by 2025	2023	New
	Enhancement of the skills of young talents in PCL and logistics functions through an inclusive onboarding and job rotation programme to enhance employer branding towards genZ	No. of onboarding cycles	2 onboarding cycles by 2025	2023	New
	Fostering a culture of inclusion at all levels of the corporate structure through specific training courses	Initiative release	Release of the Diversity&Inclusion "Learning Path" by 2024	2023	New

2023 Annual Report

rotection of human rights

Poste Italiane Group Report on Operations at 31 December 2023

MAIN RELATED TYPES OF CAPITAL

oste taliane recognises the fundamental importance of its contribution in promoting the principles of sustainable development, considering its relevance within the talian economic and social panorama herefore, the Group has adopted a Code of thics, supported by corporate policies and guidelines to protect and safeguard Human Rights hese include the Corporate olicy on the rotection and afeguarding of Human Rights, the olicy on the Diversity of Management and Control Bodies, the Diversity & nclusion olicy and the more recent upport for Active arenting olicy Moreover, in addition to following the company policies and guidelines mentioned above, oste taliane guarantees the well-being of all the people working in the Company or collaborating with it, and is committed to improving the conditions of the communities in which it operates through a proactive approach aimed at disseminating respect for international principles concerning the safeguarding and protection of Human Rights

Poste Italiane undertakes to progressively intensify its responsibility for the protection of Human Rights, in the interest of those who work with the Company and of the people belonging to the community in which it carries out its activities

he Group's Corporate olicy concerning the safeguard and protection of Human Rights reiterates the rules of conduct to be observed in relations with all stakeholders with whom the Company interacts, as already set out in the Code of thics oste taliane pays particular attention to safeguarding the rights of all subjects included within the Group's value chain, belonging to specific categories such as: its own workers, women, children, indigenous people, migrants, external workers, local communities, suppliers and partners, customers, people with disabilities, people who are victims of any form of discrimination and violence hrough this olicy, the Group affirms its commitment to conforming company processes to the main international standards and best practices, and to promoting these principles and periodically reporting the progress of the performances achieved, in terms of management and monitoring methods, identified risks and management and mitigation actions Furthermore, the olicy regulates various aspects concerning the prevention and condemnation of any form of discrimination or violence, including forced labour, child labour and human trafficking, also promoting freedom of association, the right to collective bargaining and to fair remuneration, in order to support the wellbeing of people

Among the key objectives of oste taliane, particular importance is given to the encouragement and development at all levels of the organisation of a business culture based on the respect and valorisation of diversity in all its forms and manifestations he conscious management of diversity in an inclusive way contributes not only to creating shared social value, but also represents a competitive advantage for the entire Group, strengthening people's engagement and commitment towards company objectives

he projects and initiatives promoted by oste taliane in order to guarantee social inclusion and enhance diversity are an integral part of a broader strategic framework, aimed at developing balanced organisational models to encourage communication and highlight personal characteristics, while protecting individual vulnerability he path undertaken by the Group aims to evolve from an approach focused exclusively on the protection and integration of diversity, towards a more proactive strategy that aims to overcome barriers and resolve the factors that hinder the inclusion of individuals in the workplace he Group's diversity and inclusion strategy testifies to the Company's commitment to creating a collaborative, supportive and open working environment, while at the same time maximising the opportunities it provides, contributing to the well-being of its people on the one hand and to its competitive advantage in business on the other

he guiding principles and values regarding diversity and inclusion have been defined by the Group through the development and formalisation by the Board of Directors of a Diversity & nclusion olicy, through which the administrative body defines measurable and multi-year objectives n particular, the Diversity & nclusion olicy is based on four pillars: Gender, Generations, Disability/Vulnerability and nterculturality/ nclusive Culture, and was developed through a bottomup process involving listening to the ideas and the needs of the company population his process has led to the definition of numerous projects relating to topics such as development and opportunities, open communication, inclusion and care, participation and dialogue, culture and awareness he olicy, available online on the company website is communicated to all employees through specific training sessions, in accordance with their respective roles and responsibilities With reference to updating, the olicy is periodically evaluated at least once a year, based on the evidence emerging from the assessments and from the monitoring of national and international trends

Gender

he Group has launched a series of initiatives and projects aimed at promoting gender equity and removing barriers to women's professional growth n particular, the Group is committed to enhancing governance systems to foster career progression, designing composite focus groups to assess the main conscious or unconscious biases that influence inclusive leadership, and improving work life adjustment mechanisms in terms of reconciling and sharing family responsibilities he awards obtained by oste taliane in this area expand, in fact, to the prestigious international qual alary certification, achieved in 2022, in addition to the more recent U / dR 125:2022 certification, which further confirms the Group's commitment to guaranteeing gender equality within the organisation

Furthermore, with the aim of providing an overview of the phenomenon of gender harassment and its impact on individuals and organisations, promoting a culture of respect within the workplace, the Group has extended its attention to issues related to sexual orientation and the prevention of gender harassment in the workplace, implementing an information programme to raise awareness among all employees

Generations

oste taliane promotes integrated strategies to encourage dialogue and collaboration between different generations within the Company, taking into account demographic perspectives and their impacts on turnover he Group promotes the contamination of different social, cultural and professional experiences, in addition to the different skills, knowledge and competences typical of each generation his inclination towards complementarity and diversity encourages the mutual exchange of experiences in order to promote inclusion and employment opportunities

Disability/Vulnerability

oste taliane has undertaken collective awareness initiatives in order to preventively identify vulnerable situations and facilitate job placement and the quality of work for those with sensory, motor or cognitive disabilities n this context, oste taliane is committed to developing intervention policies aimed at spreading an inclusive business culture and introducing a distinctive identity that takes fragile situations into consideration

Interculturality/Inclusive culture

he Company has designed multi-year initiatives aimed at promoting interaction between different cultures and experiences through the implementation of envisioning and knowledge dissemination programmes in organisational and managerial environments, with the aim of promoting an intercultural vision open to discussion at different levels, focused

on promoting cooperation at both organisational and social levels

Furthermore, with the "Multi-ethnic ost Offices" project, an intercultural laboratory was activated, which involved multilingual counter operators as testimonials for the dissemination and awareness-raising on intercultural issues Based on their testimonies, the e-learning course on nterculturality was designed for the entire company population and made available in early 2024

Smart Café hematic meetings

n order to underline the Group's commitment to promoting initiatives for the development and integration of the managerial community, oste taliane continued the " mart Café" project, which consists of conversations dedicated to managers with the aim of encouraging dialogue with a high intercultural rate at work and beyond

hese conversations focus on thematic paths that highlight different cultures and knowledge, also taking generational differences into account hrough an innovative approach to communication and relationships, the project aims to create an intercultural space for the exchange of contributions, points of view and social, cultural and work experiences

n particular, in 2023, as part of the "Bridges between Generations" campaign launched by oste taliane on the occasion of the uropean Diversity Month 2023, a special edition of the " mart Café" dedicated to generational exchange was promoted, where the contamination of different social, cultural and work experiences was promoted to strengthen the working alliance between different generations

he Diversity & nclusion programmes, in compliance with the provisions established in the company olicy, are subject to monitoring using indicators developed annually in conjunction and collaboration with the Group's ustainable Development, Risk and Compliance function, consistently with the evolutionary guidelines of the corporate sustainability plan

oste taliane maintains, in continuity with the previous year, its Diversity & nclusion lan, developed following an active participation process that involved the formation of cross-functional working groups made up of professionals and middle managers who operated according to a bottom-up approach, formulating project proposals evaluated on the basis of two criteria, the qualitative-quantitative impact on the company population and the speed of implementation he objective of the lan is to generate significant change processes that bring added value to people, organisational behaviour, leadership styles and relationships within the Group hrough the implementation of targeted projects and initiatives, as well as communication and awareness campaigns, the Group promotes engagement, listening and trust, the creation of inclusive work environments, and the overall improvement of the corporate organisation through the valorisation of diversity

n addition, in order to further disseminate knowledge and understanding of the importance of each individual within the Company and of diversity initiatives, as well as to promote interaction between different cultures and experiences in order to initiate participatory processes characterised by the coexistence of a set of different cultures among people, a dedicated section called "Diversity & nclusion" has been set up on the oidi oste corporate intranet his section offers content such as news, documents and multimedia material Furthermore, in 2023, the series of serial podcasts entitled " n Other Words", launched last year and aiming to emphasise listening through the narration of stories focusing on diversity and inclusion, was enriched with further episodes on the topics of gender, comparing generations, interculturality, vulnerability and affective orientation

2023 Annual Report

he Group's commitment to promoting an inclusive culture represents a cultural path that can enrich the professional experience of staff throughout their careers, bringing benefits both individually and collectively o this end, the Company adopts a constant and systematic approach, implementing synergistic actions aimed at developing analysis models and indicators in line with people management processes his system allows management to evaluate scenarios, objectives and metrics in a transparent and visible way, both within the organisation and towards external stakeholders

Diversity and Inclusion Training oste taliane promotes a barrierfree culture

Generations in the Company

oste taliane has made the online training course available to the entire company population, with the aim of providing awareness of the characteristics of the different generations present in the Company, learning what to implement in order to overcome differences with colleagues and to be an active part in a social context characterised by the coexistence of different lifestyles, work relations and cultural approaches

Disability: a plural future without barriers

n order to foster and support the development of a more inclusive culture and stimulate a collaborative, supportive working environment open to everyone's contributions, great attention was also given to the issue of disabilities Also in a training perspective, the webinar "Disability: a plural future without barriers" was delivered, with the aim of fostering understanding not only of the term but above all of the stereotypes and prejudices ingrained inside and outside the corporate system

Training cycle and workshops

During 2023, the training cycle concluded with a further 16 innovation laboratories aimed at territorial operational heads, who with the polarity thinking methodology concretely addressed the issues relating to one of the four dimensions that constitute the Diversity & nclusion olicy, putting themselves concretely at stake and drawing up their own personal action plan o share the evidence from the various workshops, a further 4 thematic follow-up webinars were organised with the participation of all target group colleagues During the follow-ups, external guests intervened with inspirational speeches and focused on key trends in order to foster greater contextualisation to business challenges

Inclusive language

oste taliane has designed an e-learning course aimed at encouraging widespread reflection on the value and impact of language and offering participants knowledge of neutral communication techniques and methods t will be made available to the entire company population in early 2024

LGBTQ+ Awareness

During 2023, the Company committed to carrying out campaigns and awareness-raising actions on issues of labour inclusion and LGB Q+ rights n particular, 15 news items highlighting thematic events and initiatives were published, and the first issue of the podcast series " n other words" was released imilarly, an online course was implemented, which started in ovember 2022 and delivered throughout 2023 for new recruits With reference to the management target group, a further webinar on the same subject was organised

Over the course of the year, all activities related to Diversity & nclusion were carefully monitored and evaluated through a feedback collection system, in order to guarantee continuous improvement and allow participants to actively contribute to the planning of subsequent initiatives he Company recognised the importance of increasingly integrating the social, relational and process dimensions of Diversity & nclusion into its strategic vision

Poste Italiane Group Report on Operations at 31 December 2023

With the intention of pursuing these objectives, a survey was launched in July, extended to the entire company population by means of the "Disability, Vulnerability and nclusion" survey, with the aim of gathering information on individual and collective knowledge and perception of Diversity & nclusion issues, in particular of disability and vulnerability, as well as corporate commitment in this area Based on the evidence, it emerged that the perceived level of inclusion is high and knowledge of the topic is fairly broad A large proportion of the population with special or vulnerable conditions shared their condition mainly with colleagues or their supervisor, indicating the presence of working environments that ensure openness and inclusion of difficult situations he survey was disseminated online via the company intranet, official news, G oste and the newsletter Moreover, following the results of the survey and with the aim of offering continuous support to occupational well-being and promoting the valorisation of pluralities within the scope of Diversity & nclusion policies, a further cycle of webinars specifically dedicated to disability was launched in December, with a view to continuing throughout 2024

With the aim of preventing any possible negative impact on the company population affected by the initiatives, all events are disseminated, enhanced and communicated on the internal website, in such a way as to guarantee the possibility of obtaining information regarding the company's action in this area and to allow the entire company population to participate Furthermore, systematic feedback is provided to comments and reports from employees present in the company intranet community in order to ensure timely information clarity and offer contextualisation elements useful for participation and contribution to the collection of any suggestions for improving processes

he main initiatives promoted on Diversity & nclusion issues are monitored in the Human Resources and ndustrial Relations area through the eople Care and Diversity Management function, established in 2019, within which a contact person responsible for promoting the implementation of the planned project initiatives operates in the Diversity & nclusion lan, also taking care of programme management activities for cross-functional projects n order to support these initiatives, a budget defined on the basis of the annual planning is assigned n general, projects and initiatives related to Diversity & nclusion are managed through internal databases using dedicated company systems, functional for mapping participants, reporting and monitoring, and are accessible via the company intranet

n 2023, oste taliane continued with the implementation of the Diversity & nclusion K monitoring dashboard, a tool based on the processes typical of the Human Resources function that analyses the performance of the main variables on the four Diversity aspects: gender, generations, disability/vulnerability and interculturality, breaking down the analysis by organisational function and territory he dashboard provides a detailed picture of the movement on each of the four aspects, allowing timely intervention in case of objectives not in line and in critical situations n addition, from 2023 onwards, the dashboard will also monitor the development of reasonable accommodations, in order to constantly monitor Diversity & nclusion dynamics and take corrective action when necessary

o ensure alignment with market trends and best practices, the operations of the HR tudy centre continued during 2023, which actively participates in inter-company discussions also engaging with associations and institutions in order to generate new opportunities, visions and orientations suited to company objectives he HR tudy centre also provides carefully selected content organised into thematic areas presented through innovative editorial methods, making use of the dedicated online site, pazioRUO, accessible to all Human Resources and Organisation employees he online platform promotes the exchange of information, the sharing of experiences and the wide dissemination of contents and approaches aimed at supporting inclusive culture and people's well-being in general

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Poste Italiane obtains Uni/PdR 125:2022 certification for gender equality

n 2023, oste taliane obtained U / dR 125:2022 certification for its ability to ensure gender equality in the workplace he certificate, provided for in the ational Recovery and Resilience lan ( RR), recognises the Company's ability to guarantee a real level playing field in the design, steering, control, coordination and delivery of postal, logistics, financial, insurance and digital services

oste taliane obtained an overall score of 96% - compared to the required minimum of 60% achieving excellent results in the six macro-areas assessed: culture and strategy, governance, personnel (HR) processes, opportunities for growth and inclusion of women in the company, gender pay equity, parental protection and work-life balance

o influence cultural awareness in the area in which oste taliane carries out its activities, professional figures called "Diversity and nclusion upporters" have been designated, operating in the Human Resources field throughout the national territory, with the aim of supporting and disseminating company initiatives and collect suggestions and ideas from staff in their respective areas of expertise, always in a logic of bottom-up dissemination of collaboration and the expression of needs in a virtuous cycle of continuous monitoring and redesign, which involves all the corporate realities

n order to increase the engagement of the company population and to promote a positive working environment and a more inclusive organisational culture, in 2023, oste taliane launched the first two mployee Resource Groups ( R G ), groups of colleagues united by their sensitivity and enthusiasm for inclusion issues, who are guided and trained to spontaneously catalyse change within the Company, transforming the commitment to Diversity & nclusion into concrete actions that generate value for the future and nurture an inclusive culture throughout the organisation he aim of this initiative is to give people a voice, collect and systematise proposals and practices from the various territories, encouraging proactivity in generating new ideas and promoting collective awareness of the value of inclusion his innovative approach mobilises people's energies, encouraging mutual learning and overcoming both hierarchical and functional dimensions to accelerate change n addition, the first two R G also include upporters and Allies of Diversity & nclusion, figures who are actively involved in the transformation process and who provide input and project ideas, and the process of setting up the third R G has also been completed

oste taliane promotes a wide range of initiatives that give concrete expression to the principles of inclusion and equal opportunities A key element in this context is the drafting of the Framework Agreement on Harassment and Violence in the Workplace, by which the Group is committed to maintaining a working environment in which respect and dignity for every individual is ensured oste taliane also cooperates with the two main advocacy organisations operating at national level, i e the Anti-Violence etwork "D i Re" (Donne in Rete) and the voluntary association " elefono Rosa", and finances a fund for the economic and working autonomy of women victims of violence, offering many of them with training opportunities, job placement and in some cases, also accommodation solutions he principle of equal opportunities in career paths is rigorously applied, guaranteeing that the selection of personnel takes place on the basis of professionalism and skills in compliance with company needs, regardless of personal characteristics such as age, gender, sexual orientation, disability, ethnicity, nationality, political opinions and religious beliefs

oste taliane also adopts many good corporate practices aimed at supporting motherhood and fatherhood within the organisation n collaboration with "Valore D", a business association that promotes diversity, talent and female leadership, oste taliane has undertaken managerial training actions aimed at encouraging the professional growth of its

collaborators he Company is also actively involved in raising awareness on the subject of gender violence, through the implementation of awareness initiatives and the continuous monitoring of the impact of such activities on the territory, in accordance with the Memorandum of Understanding stipulated with the Ministry of qual Opportunities o this end, institutional awareness-raising messages on these issues are displayed on the screens of ostamat A Ms, as well as other useful information such as the 1522 toll-free number and the app for preventing and combating violence, including stalking and mistreatment

oste taliane dedicates particular attention to all aspects aimed at fostering an ever-

increasing reconciliation between work and family life, as well as at combating violence against women n response to the emergency and difficulties caused by the pandemic in previous years, with particular reference to women victims of violence, and considering the availability of owned residential housing, in 2021, the Group launched the "Women Victims of Violence Housing Autonomy" project he initiative, which is in continuity with the project launched in 2019 aimed at the employment inclusion of women victims of violence and their inclusion in the world of work, has been confirmed by oste taliane also in 2023 n fact, the Company has fully financed the initiative for the third consecutive year, thus consolidating its position as one of the leading companies in the talian social sustainability scene

pecifically, oste taliane is making available 10 dwellings belonging to its real estate assets throughout taly, earmarking them for the independent living of women and their minor children in situations of particular economic hardship his initiative currently involves nine regions, and is operational on the provinces of Vercelli, Brescia, adua, Bologna, Macerata, Rome, Bari, aples, alerno, Messina ince the start of the project in 2022, 32 women and 30 minors have been received through hospitality experiences he five-year project is coordinated by the Corporate ocial Responsibility function in collaboration with the Real state Function, and is enriched by the consolidation of the partnership with the associations DiRe (Donne in Rete) and Differenza Donna, a hird ector reality engaged in the fight against gender violence throughout the national territory, with the task of selecting women and providing them with support throughout the entire process of housing independence

Moreover, in 2023, oste taliane confirmed its commitment to the inclusion of women victims of violence through the " uspension of mortgage instalments" ndeed, the AB and the rade Unions agreed to extend the Memorandum of Understanding, already signed in 2019, for a further two years until 25 ovember 2025 he Company, in continuity with the actions already undertaken, in agreement with the financing banks Deutsche Bank and ntesa anpaolo has implemented the provisions of the agreement with AB and offers women victims of gender violence included in duly certified protection paths and who are in economic difficulty, the possibility of requesting the suspension of the payment of the principal amount of mortgage loans, with the corresponding extension of the repayment plan, for a period not exceeding 18 months and in any case not beyond the duration of the protection process he Company also signed the three-year rotocol on the implementation of policies on gender equality, equal opportunities and the fight against gender violence with the Ministry for qual Opportunities and the Family on 13 April 2022, confirming its commitment within a broader institutional context

In relation to the initiative promoted by the Ministry for the Family, Birth and Equal Opportunities, the Company signed the "Code of self-discipline of companies responsible for motherhood" in early 2024. The Code aims to promote a favourable environment for working women by promoting the career continuity of mothers, initiatives for the prevention and treatment of health needs and the adaptation of working time and working methods in an inclusive way.

the country

n relation to the company's commitment to combating gender violence and the Housing Autonomy project, oste taliane has created training and awareness programmes available to staff with the aim of developing greater awareness on the topic of gender-based harassment and violence and on main tools for recognising the phenomenon and preventing it, while offering an overview of programmes for the work and housing inclusion of women victims of violence

The new LGBTQ+ Inclusion Policy

n order to reinforce the Group's investment in its diversity and inclusion policies, the LGB Q+ nclusion olicy was outlined in 2023 and formalised in early 2024 in interdisciplinary working groups

n line with what has already been stated in the Group's Code of thics, which recognises the value of a work environment free from any form of discrimination or harassment, the olicy aims to promote equal access to work opportunities and work environments in which everyone can feel free and safe to express themselves and thus give their best, and to define the tools and measures to counter any forms of discrimination or prejudice linked to gender and affective/sexual orientation

he Group is therefore committed to intervening in favour of LGB Q+ inclusion through social parenting support initiatives, specific guidelines to accompany gender transition, and training and awareness-raising campaigns to address prejudices in this context

Parks – Liberi e Uguali Gender identity and coexistence of differences

he collaboration with " arks - Free and equal" continues in 2023, a non-profit association whose members are exclusively employers, which aims to provide support to member companies, bodies and institutions in understanding the potential of business related to the development of strategies and good practices that respect diversity, in order to create work environments that are inclusive and respectful of the entire company population, with particular attention to those who belong to the LGB Q A+ community

oste taliane actively promotes inclusion policies to protect diversity, and the collaboration with arks significantly contributes to further strengthening this path umerous awareness-raising initiatives have been implemented aimed at valorising plurality, accompaniment in cases of gender transition, consultancy in the definition of training and communication programmes and evolutionary integration in work processes and relationships

he collaboration aims to consolidate the cultural positioning of the Company in its diversity management journey

Among these initiatives is the creation of an e-learning course aimed at promoting awareness on the issues of affective orientation and gender identity t starts from the origin of the acronym LGB Q + and proceeds to outline the main barriers to inclusion he primary objective is to raise participants' awareness of these issues, enabling them to identify these barriers and subsequently address them constructively

Poste Italiane Group Report on Operations at 31 December 2023

n order to promote the values of diversity and inclusion also within the administrative bodies, the Group has adopted a

"Diversity olicy for Management and upervisory Bodies", which constitutes the document through which the Company declares its responsibility with respect to this issue

he olicy establishes the criteria for a qualitative and quantitative composition of the Board of Directors, aimed at ensuring effective fulfilment of the tasks and responsibilities entrusted to it, through the presence of individuals who ensure a sufficient degree of diversity of perspectives and skills, fundamental for a good

understanding of current affairs, risks and opportunities associated with carrying out the company's business in the long term

hrough this olicy, the Group defines the criteria for selecting the members of the Board of Directors in a manner functional to their responsibilities and tasks, also guaranteeing the presence of people characterised by different perspectives and skills, capable of managing the risks and opportunities related to the long-term business activity

he olicy makes it possible to ensure a qualitative composition of the Board of Directors that is optimal for carrying out its functions effectively n defining said criteria, the Board of Directors took into account various factors, including the nature and complexity of the corporate activity, the social and environmental context in which the Company operates, the experience gained by the Board itself with regard to the activities and the operating methods of the Board and the internal Board Committees, as well as the results of the self-assessment processes conducted in recent years Finally, in compliance with the requirements of professionalism, integrity and independence, as well as situations of incompatibility and/or disqualification provided for by law, regulatory provisions and the Articles of Association, the olicy also considers age and seniority in office, gender, geographical origin and international experiences n addition, the olicy recommends professional skills in the areas of financial or contributory policy, accounting and risk management, as well as in-depth knowledge of the sector in which the Company operates, in order to assess the related risks

he Board of Directors, with the support of an external company specialised in this field, annually submits its performance to an evaluation called Board Review his selfassessment follows a procedure that includes individual interviews with each director, statutory auditor and the ecretary of the Board of Directors, also using specific questionnaires

of female middle and senior managers in 2023

46%

he final report prepared by the commissioned company is reviewed and shared with the Board of Directors in its collegiality he Board Review carried out in 2023 showed that the quality profile of the administrative body in terms of skills, professionalism, experience and diversity, in its various meanings, is appropriate

n addition, during 2023, with the support of an external consulting firm, the Board of tatutory Auditors carried out an assessment on the issue of diversity, from which it emerged that the composition of the body is adequate and benefits from the complementary professional experience and skills of the tatutory Auditors he elf-Assessment document also shows that the representation of "diversity" meets the needs of the Company in all the meanings considered below, i e experience/seniority, gender, age group, tenure, education and culture n addition, the Board provided a fully positive assessment regarding the detail of supervisory activities, expressly referred to for the purposes of the elf-Assessment pursuant to Bank of taly Circular no 285/2013

of the BoD of the arent Company is made up of women

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Sustainability Report Award laced first in Diversity and

nclusion

oste taliane obtained first prize in the "Diversity & nclusion" category on the occasion of the fifth edition of the " ustainability Report Award", promoted by the Department of conomic and Business ciences of the University of avia with the aim of enhancing the work of companies relating to reporting on G issues

n particular, oste taliane stood out for its mention of activities supporting diversity and inclusion in the company and a good gender balance in top positions

he award ceremony, held in the Aula Magna of the University of avia, was followed by two panel discussions in which sustainability experts and practitioners spoke, bringing their knowledge, experience and expectations regarding the future of sustainability reporting

Excellence in Diversity and Inclusion he oste taliane Case as an nspiring Model

oste taliane was included in Lundquist's "D & 2023 Whitepaper", a research study on the topic of Diversity and nclusion, focusing on the analysis of the communication of commitments and initiatives in this area by 49 large companies According to the research, the D& approach adopted by oste taliane is comprehensive and integrated into both its company and sustainability strategy his aligns with the stated actions and objectives,

oste taliane was mentioned by the research as a potential source of inspiration, as it demonstrates its commitment by communicating concrete actions, including mentoring programmes for the younger generation, motherhood and fatherhood support policies, and adaptations in post offices to meet the needs of people with disabilities

positioning the Company as an example of good practice

qual career development opportunities

Human Resources management represents a priority for the Company, which is committed to guaranteeing respect for equal opportunities and recognising the value of each individual,

while reducing situations of individual fragility n accordance with the provisions of the Code of thics, the Group promotes fair management and growth of intellectual potential, in line with the criteria of merit and the results obtained, ensuring equal treatment and condemning any form of discrimination n line with this principle, the selection of the company population is based on individual skills and professionalism, reflecting the needs of the Group he selection process takes

place independently of age, gender, sexual orientation, disability, ethnicity, nationality, political opinions and religious beliefs, which do not constitute evaluation criteria, in line with the principle of impartiality expressed by the Group

oste taliane considers the development and valorisation of people's distinctive skills, in any form and manifestation, at different levels of the organisation, as fundamental strategic levers to support the growth of the Group's business he

approach adopted by the Company is aimed at the broadest involvement of employees, recognising and enhancing their skills along the entire value chain, in such a way as to acquire a competitive advantage on the market and generate shared social value

Through ongoing dialogue with the entire workforce and a constant commitment to combating all forms of discrimination, Poste Italiane promotes the well-being of each individual within the Company

n continuity with previous years, oste taliane supports the "Charter for qual Opportunities and quality at Work", a declaration of intent voluntarily signed by companies of various sizes with the aim of promoting a corporate culture and human resources policies that are inclusive and free of discrimination and prejudice By signing this statement, the Group reinforces its commitment to valuing the individuality and diversity of the people in the company n fact, the Charter promotes principles aimed at creating a work environment that reflects the values of inclusion and pluralism, offering equal opportunities to all people and enhancing individual skills he encouragement and development of a corporate culture based on respect and valorisation of diversity also constitute the prerequisite for developing remuneration systems that enhance the skills of each individual, thus contributing to promoting optimal work performance and creating long-term shared value

oste taliane continues to implement what was agreed within the Memorandum of Understanding with the Ministry of qual Opportunities, in line with its commitment to enhancing diversity and creating joint and effective action in communication, awareness and dissemination of the following topics:

• promote initiatives aimed at the protection and full affirmation of human rights, as well as preventing and combating all forms of exploitation of human beings and people trafficking;
• promote full implementation of policies regarding equal opportunities between men and women, with particular reference to work-life-balance and career issues;
• prevent and combat sexual and gender-based violence, stalking and any other form of violence against and abuse of women and children;
• prevent and eliminate all forms of discrimination directly or indirectly based on ethnic origin, religion, personal beliefs, age, sexual orientation or gender identity

MAIN RELATED TYPES OF CAPITAL

~ 1,200

employees participated in the Lifeed project in 2023

upporting maternity and paternity

Consistent with previous years, the Lifeed initiative, originally launched in 2015 under the name "MAAM", "Maternity As A Master", continues his initiative aims to support family reconciliation, with a particular focus on women's participation in the world of work he programme, which is accessible in digital format, aims to make the parenting experience a "master" in transversal skills, which are also essential for professional growth and considered particularly useful when returning to work he aim is to provide a greater awareness of the changes and skills acquired through the experience of caring for a child

he programme is aimed not only at new mothers and fathers but also more generally at parents of children up to the age of 18 During 2023, the programme achieved the participation of about 1,200 users, who had the opportunity to enhance the skills acquired during their parenting experience mployees who join the initiative can take advantage of online selfcoaching courses that help them achieve a work-life balance, experienced not as a conflict but as an opportunity hese are webinars for inspiration, reflection, skills training and sharing on issues related to work-life synergy, well-being and the development of transversal skills

he MultiMe®Finder programme, a tool introduced in 2022 and offered by Lifeed in cooperation with the Kellogg chool of Management at orthwestern University in Chicago, was expanded in 2023 his programme has been made accessible not only to parents, but to all employees who wish to improve their awareness and develop their personal and professional growth skills he goal is to allow users to explore and discover their skills and roles in different life experiences, both personal and professional n this way, the programme aims to increase awareness of the roles played in different experiences, enhancing one's talents with greater flexibility in an inclusive perspective

he Company has set itself the objective of contributing to the strengthening of measures and pathways aimed at promoting active parenthood, also as levers to combat the phenomenon of denatality and to encourage an increasingly balanced distribution of care burdens his included 4 parenting support seminars for all employees, innovative and structured parental involvement programmes with a kick-off and 6 dedicated project knowledge webinars

n addition, in 2023, oste taliane promoted the "Fiocco Giallo" (Yellow Ribbon) project, which, with the aim of offering concrete support to new parents and celebrating the arrival of a child, offers employees who become parents through birth, adoption or pre-adoptive fostering a box of quality products for baby care and hygiene

hrough the upport for Active arenting olicy, already formalised since 2022, the Company has defined a clear framework for women before and after the maternity (or adoption) period he olicy provides for support and development pathways aimed at the individual and organisational well-being of people and focuses on programmes to support the parental role and actions to support the status of women he aim is to offer a concrete response to colleagues who need to reconcile family life through inclusive policies With it, in fact, the Company outlines a people development and management strategy in line with the tools already in place and develops a modern parenting model aimed at supporting women, before and after the period of biological or adoptive motherhood he olicy, in particular, envisaged the centrality of listening in order to correctly identify the person's needs and individual requirements, and the identification and development of a customised accompaniment programme based on the professional profile of the person and their maternity and personal care needs his programme is structured with development paths both before and after absence from work, the use of the aforementioned platforms to enhance the soft skills acquired through the parental role, as well as the possibility of participating in refresher and coaching programmes to facilitate, if necessary, return to work n this way, the Group has introduced management and care processes that offer a concrete response to employees, enhancing inclusive policies and representing an investment in the future of the Company and families Attention is also paid to the role of fathers and to the promotion of sharing care responsibilities for the strengthening of work-life conciliation mechanisms and of measures capable of promoting environments that are culturally ready to accommodate these needs hese initiatives are driven by increasingly innovative approaches and perspectives, which aim to improve the quality of life of employees and promote a sustainable and fair working environment

With this in mind, the olicy provides for the definition of similar dedicated management paths for male personnel to:

• increase the number of male employees taking paternity leave;
• encourage the development of a culture oriented towards collaboration on care issues, because the inclusion and development of women's careers also passes through the rebalancing of care requirements with a view to the equal distribution of family responsibilities

he Group, in fact, recognises the importance of parenting for men as well, being aware that it represents a significant opportunity to improve skills such as empathy, listening, understanding of others, patience and communication, and offers free and systematic parenting support seminars for all staff on paediatric prevention and parental support in the developmental and relational journey with children

he "Mums At Work" project is part of the actions outlined by the upport for Active arenting olicy, an initiative aimed at providing corporate coaching programmes to support women during the period of return from maternity leave, in order to facilitate achieving a balance between private and professional life n particular, new mothers receive support for approximately four months from internal company coaches who assist employees in reformulating and refocusing their goals and in reconciling new family needs with the return to their work duties in the company By 2023, the project had successfully involved more than 70 new mothers, highlighting the positive impact of the initiative in the business context he Company, in addition to guaranteeing compliance with the regulations in force as regards breastfeeding leave, grants parents who take breastfeeding leave the possibility of being assigned, until their child turns one, to the municipality of habitual residence or to a neighbouring municipality, within their own territorial structure mployees are also entitled to recuperative hourly leave for medical services for medically assisted procreation ( MA), for a maximum of 24 hours per year, or full-day leave, for a maximum of 4 days per year t is also recognised that it is possible to increase the number of weekly and monthly days on which work can be performed in Agile mode in the event of particular personal and family situations that entail a greater commitment on the part of employees in terms of work-life balance, as well as for pregnant workers, for whom the possibility of performing their entire service remotely until the beginning of maternity leave may be considered

Online Awareness Initiatives romoting ositive arenting through nterdisciplinary Webinars

n the course of 2023, in order to undertake an interdisciplinary path on diversified topics to accompany families towards positive parenting, four webinars were organised, in collaboration with experts in the field, for all employees with children of paediatric and/or adolescent age, ranging from aspects related to the relational, emotional and social sphere to issues concerning the construction of children's identity with respect to gender issues, in line with the evolutionary dynamics of the current context hrough the development of such online seminar programmes, the Group aims to put parenting skills back at the centre to improve caring relationships and people's personal and organisational well-being

Developing women's leadership

oste taliane's corporate identity has always been characterised by a strong female presence and a work environment that promotes freedom from any form of discrimination and prejudice in order to allow each individual to express themselves at their best, in line with the objectives shared in the Diversity and nclusion olicy

As part of its support for gender equality, oste taliane has promoted numerous initiatives, starting from its partnership with "Valore D", to obtaining qual alary and U / dR 125:2022 certifications for gender equality n addition, the participation of women in the field of M skills was emphasised, through the inclusion of young women with this course of study hese initiatives constitute a significant part of the Diversity & nclusion lan, which also includes strengthening management systems for career progression in middle management positions, enhancing work life adjustment mechanisms in terms of sharing family responsibilities, and removing potential obstacles to gender equality, including those

related to sexual orientation and gender-based violence Adherence to the qual alary certification process, obtained in 2022 and maintained in 2023, has allowed the Company to verify pay equity between women and men within its organisation, enriching innovation processes, improving reputation and image of the Company and offering maximum transparency regarding oste taliane's ongoing commitment to gender equality issues

he conscious management of diversity in an inclusive key, in addition to creating shared social value, provides a competitive advantage for the entire oste taliane Group and is functional to promoting people's engagement with respect to corporate goals his is confirmed by the numerous recognitions obtained by oste taliane, including the Group's rating for gender equality policies and actions according to the Bloomberg Gender- quality ndex and by quileap

he numerous recognitions obtained by oste taliane for its policies of attention to gender diversity testify the rooting of these values in the corporate culture and the sharing of the path at every level of responsibility, further enhancing the Group's reputation in the markets and among the financial community

Alliance between the generations

he Company supports school and career guidance projects, recognising the responsibility of socially responsible companies to promote the growth of the younger generation and to collaborate with the school system and families o this end, oste taliane has collaborated with Consel-Consorzio lis in the two-year " chool4Life 2 0" project, which aims to foster a structured connection between schools and businesses, prevent school drop-outs and offer young people a more direct view of the world of work and greater awareness of their own potential

oste taliane has also implemented programmes aimed at strengthening the alliance between the corporate and educational worlds, through orientation and intergenerational dialogue initiatives hese programmes provided opportunities for collaboration between seniors and students to overcome vertical barriers and foster the exchange of experiences to support inclusion and employability

Role models, mentors and trade masters are the roles that the company experts identified play to inspire young people and guide them in their study and work choices, promote the expression of their critical thinking, transfer trade-related skills and bring them closer to the complex and constantly evolving world of work

he enhancement of Mentoring has also contributed to the construction of the Leadership Community of ractice as an inspirational space for the dissemination of evolved managerial values and models Also continued with Valore D was the implementation of orientation programmes through dialogue with role models of different ages aimed at encouraging school-age girls and boys to follow their aspirations, free from conditioning

As part of the company's initiatives aimed at fostering intergenerational alliance and exchange on the basis of the results of the "Generations Connected" survey, support initiatives continued and new actions were launched

n particular, the M A project " he Value of xperience", job training among colleagues, seniors and juniors, to compare techniques, approaches and acting skills, continued he programme will continue in 2024 in Digital, echnology & Operations

nhancement of disabled personnel

n line with the objective of enhancing diversity and promoting social inclusion, oste taliane continues with the L roject in some ost Offices throughout the country his project aims to establish a dedicated desk that provides services in sign language to customers with hearing disabilities he customer is assisted by staff able to communicate in talian sign language for normal counter activities, such as paying bills and sending mail and parcels oste taliane has developed numerous accessible multimedia contents on its site, created to meet the different needs of users in terms of accessibility and communication methods n fact, among the tools there are contents with predominantly visual characteristics such as infographics and video highlights, as well as recreational-educational narrative elements as in the case of interactive games hese initiatives are an integral part of oste taliane's vast programme aimed at offering services and tools accessible to all users

Poste Italiane Group Report on Operations at 31 December 2023

With the entry into force of the new regulations as of ovember 2022, which make it mandatory for large talian private companies to comply with the Web Content Accessibility Guidelines (WCAG) 2 1, oste taliane has made a commitment to fully comply with these standards and to adopt a specific approach aimed at making digital accessibility sustainable in the long term herefore, complying with the specific regulations on digital accessibility, oste taliane is committed to the design and development of technological solutions capable of ensuring that digital services are accessible and usable by all, eliminating barriers and facilitating equal access to information and online resources oste taliane's commitment to digital accessibility, therefore, fits perfectly with its Diversity and nclusion strategy, which promotes an inclusive work environment and company culture that respects diversity of perspectives and abilities hus, through the implementation of WCAG 2 1 and the emphasis on diversity and inclusion, oste taliane demonstrates its tangible commitment to creating an accessible digital environment that contributes to a fairer and more inclusive society for all

upporting vulnerability

n 2023, oste taliane continued to demonstrate its commitment to the " oi iamo Qui" (We Are Here) caring initiative, which aims to support people with chronic and/or serious illnesses or who find themselves in situations of vulnerability and fragility with dedicated listening actions, work flexibility interventions, and the activation of business coaching paths to accompany their return to work and support their well-being Among the active services for the project target, in collaboration with the company Centro Medico, is also the possibility of requesting a second opinion for oncological and cardiovascular pathologies he central objective of the initiative is to offer, among the various measures, a listening process aimed at identifying the main implications of a cultural, organisational and managerial nature linked to conditions of fragility and at the same time spreading growing sensitivity and establishing a corporate closeness relationship on the topic

n addition, in order to ensure the re-employment of those people within the Company who, as a result of organisational initiatives and/or production-digital developments, are not allocated to fully productive/value-added areas, oste taliane continued the nsourcing and Re-employment programme, which was launched in 2021 Moreover, the project was also dedicated to the re-employment of "workers in a condition of fragility" within the meaning of current legal provisions who, unable to work on company premises in relation to health emergencies, found different employment to protect health and safety in the workplace

As part of its caring initiatives in support of vulnerability, the company has embarked on an integrated plan to support caregivers by introducing the "Lifeed Care" programme with the aim of offering a new vision and meaning to the caring experience his course aims to enhance the skills acquired during the caring experience by presenting a digital approach dedicated to caregivers that redefines the value perspective of the dimension between care and career hrough specific online self-discovery sessions, participants have the opportunity to improve their well-being and stress management n addition, a practical support kit was developed with the aim of fostering positive synergies for the reconciliation of professional and personal life his kit was presented during a dedicated webinar aimed at promoting greater awareness of the role of caregivers, providing tools and ways to support them he implementation of "Lifeed Care" reflects the Company's commitment to provide concrete resources and support to those dedicated to the important role of caregiver

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

"Al tuo fianco" (At your side) Project oste taliane promotes active support for employees' psychological well-being

With the aim of promoting the psychological well-being of its employees, the "At your side" project was launched in 2023 in an experimental phase t is a listening, guidance and support desk whose services include access to a dedicated platform aimed at supporting people's mental well-being his project aims to provide concrete answers to challenges, changes and vulnerable situations that may arise in the daily lives of employees he platform allows access to a network of accurately selected psychologists and psychotherapists to undertake an accompanying pathway, and makes available various accessible content, such as various scientific tests for the self-assessment of global wellbeing nitially, the Company bears the costs of the first two sessions, thus demonstrating a tangible commitment to provide initial financial support to facilitate access to psychological support services his initiative highlights the Company's awareness of the mental health needs of employees and its willingness to offer meaningful resources for their psychological well-being

"Poste, Plurale, Universale" eople at the centre of the inclusion process

n ovember, oste taliane organised the second Diversity Day event " oste lurale, Universale" he aim of the event was to share a moment of transversal attention on the inclusive path undertaken by the Company, in line with the objectives of the Group's trategic lan and the pillars of the ustainability trategy

During the event, external guests and employees shared testimonies related to the four dimensions of Diversity & nclusion: Gender, Generations, Vulnerability and nterculturality, offering an immersive experience in diversity

articipation in the event was ensured for the entire company population through the use of streaming and accessible with the presence of L interpreters

n addition, a feedback questionnaire was administered anonymously to participating employees in order to gather ideas and reflections for improvement mployees shared their experiences with authenticity, generosity and courage to help other participants learn about the actions implemented by oste taliane umerous positive feedbacks were received, highlighting the appreciation for the initiative and the value of the inclusion pathway

n order to promote and guarantee smooth and effective communication with staff with hearing disabilities in terms of accessibility in work contexts, oste taliane continues to ensure the subtitling of all videos on the corporate intranet and the development of accessible aids to improve the use of training initiatives and intranet contributions

Tutorial Poste Italiane: an inclusive project for digital accessibility and the coexistence of differences

oste taliane's utorial platform, one of the winning projects of the nsieme 24 initiative, has been realised ts aim is to support customers with sensory disabilities or who are not yet properly digitalised in independently accessing the services of oste's digital channels n this regard, the " osteXtutti" competence centre was set up thanks to the project, with the aim of involving people in the Company who experience disability first-hand in order to arrive together at a shared communication using a language capable of restoring and representing a "coexistence of differences" n this regard, in order to make oste taliane's products and services more accessible, some editions of the G oste have been made available in L

Also during 2023, oste taliane continued to support, for the eleventh edition, the initiative dedicated to employees' children and siblings with disabilities, which includes two summer holiday periods, each lasting fifteen days hanks to this initiative, about 40 boys and girls had the opportunity to enjoy leisure time and receive individual assistance from dedicated operators and were able to express their individual abilities by stimulating self-confidence, self-esteem and the ability to join and belong to the Group he programme has thus fostered an experience of socialisation and full integration, as well as allowing families to benefit from relief in their daily care needs

For the fourth consecutive year, oste taliane participated in "4Weeks4 nclusion", the largest inter-company event dedicated to diversity and inclusion in taly Over the course of four weeks, the event involved over 300 partners including businesses, universities, associations and non-profit organisations who shared events, in person and digitally, creating moments open to the public and generating thousands of interactions on social channels hrough the initiative, the company actively participated by bringing its own testimony to the inter-company day on the gender gap and realised its own seminar, accessible online, entitled "Art and the Other nclusion through diversity", with the aim of promoting a reflection on the power of art and the artist in overcoming the limits of ordinary conventions and moving towards the enhancement of one's uniqueness his event is part of the company's commitment to foster an inclusive and diverse environment, emphasising the fundamental role of art as a tool for expression and overcoming barriers

he Company, already a signatory of the Charter for qual Opportunities, joined the " uropean Diversity Month", promoted by the uropean Commission to raise awareness among organisations and companies on the importance of diversity and inclusion in work contexts, launching a campaign entitled "A bridge between generations" in which several events took place in May and June to strengthen the knowledge of the characteristics of different generations and stimulate the active participation of people in order to improve intergenerational dialogue oste taliane has organised several initiatives in this context, including: the release for the entire company population of the e-learning course " he Generations in the Company", consisting of 8 video briefs dealing with the characteristics of each generation in the workplace; the publication of a podcast on the subject; the realisation of a webinar as part of the Diversity nnovation Meeting cycle that highlighted the trends characterising the different Generations; and the activation of a special edition of the " mart Café" initiative

As part of the promotion of diversity and inclusion, oste taliane has further intensified cultural awareness and training activities also through six "Diversity nnovation Meetings", with the aim of exploring the main key aspects of diversity, focusing in particular on issues such as gender equality, intergenerational alliance, vulnerabilities, interculturality and inclusive language During these meetings, representatives of start-ups, third sector organisations and institutions were invited to share their experiences and knowledge on promoting inclusion he participants, divided into working groups, took part in interactive discussions and worked together to generate ideas to be implemented in the specific reality of oste taliane

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Poste Italiane's support to food collection ogether in the 27th edition

Among the solidarity initiatives that involved oste taliane during 2023, there is the twenty-seventh edition of the ational Food Collection Day, the initiative organised by Banco Alimentare Onlus that allows to donate part of spending to those in difficult situations of need

he Group contributed with over 180 company vehicles for the transport of donated food and employees actively participated in the day of solidarity, offering their contribution both as drivers and as volunteers in the supermarkets n just one day, 7,350 tonnes of food were collected in 11,800 outlets, a sign of trust that testifies to the value of the solidarity initiative as concrete help for the more vulnerable sections of the population

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023 7.12 CREATING VALUE FOR THE COUNTRY MAIN RELATED TYPES OF CAPITAL

upport for the socio-economic development of local communities

oste taliane confirms its commitment to supporting local communities by overseeing the implementation of modernisation and digitalisation processes aimed at increasing the well-being of citizens and the socio-economic development of the territory he Group is dedicated to promoting organic and widespread social inclusion initiatives on a daily basis, with the aim of creating a positive impact in the context in which it operates hrough an inclusive approach and constant dialogue with citizens, institutions and hird ector associations at local and national level, the Group is committed to achieving this goal by exploiting the ubiquity of ost Offices and developing high quality products and services Moreover, through an ongoing process of listening to and reconciling the legitimate interests of the community, the Company focuses its attention on the most vulnerable he latter, due to particular physical, mental, family, economic, ethnic or social conditions, receive more support and consideration

Poste Italiane is aware that listening, dialogue and the active participation of citizens are at the basis of the construction of a path of shared value creation with the territory, with a view to continuity and reconciliation of relative and legitimate interests.

oste taliane affirms its commitment to the territory and the community within its olicy on community initiatives, with the aim of contributing to the socio-economic development of the territory

oste taliane's strategy to address social challenges reflects a strong commitment to the most vulnerable and the needs of the community his policy is part of a broader regulatory framework defined by documents such as the Code of thics, the Group ntegrated olicy focused on anti-corruption and the olicy for the protection of Human Rights n addition, the olicy outlines the Group's main areas of action to generate shared value in the long term hese areas, in coherence with the olicy for the protection of Human Rights, include the integration of groups most at risk of exclusion through the provision of dedicated products and services, promotion of culture and education, economic sustainability and enhancing social connectedness hanks to collaboration with central and local administrations, the hird ector and communities, the Company actively involves stakeholders, maintaining continuous dialogue to understand and satisfy the needs of the most disadvantaged categories

oste taliane also contributes to the achievement of the following ustainable Development Goals defined within the 2030 Agenda of the United ations: to end all forms of poverty ( DG 1); to provide quality, equitable and inclusive education and learning opportunities for all ( DG 4); to encourage sustainable, inclusive and lasting economic growth, full and productive employment and decent work for all ( DG 8); to reduce inequality ( DG 10)

n making investments for the benefit of the community, the Group operates in full compliance with the principles of integrity and transparency, in line with the provisions of the Code of thics and consistent with the values defined within the Group's guidelines he methods with which oste taliane provides contributions by way of sponsorship and donations in favour of partners, bodies, associations and institutions operating in the area are defined by a specific " ponsorships and Donations" procedure, which regulates the organisational measures, aimed at avoiding any possible conflict of interest Version 8 1 of this procedure was approved in July 2023, consolidating the previous version, approved in March 2022, including the changes that occurred in the acquisition process via the website and for the evaluation of sponsorship initiatives according to the L C model, already revised in 2021 with the aim of strengthening it through more solid methods of calculating the media value and standardising the qualitative assessments of the initiatives n addition, the

L C 2 0 tool, developed in 2021 with the support of the Digital echnology & Operations Function and updated with the quantitative data provided by potential partners on the web platform, has been integrated into oste taliane's systems for 2023, with the aim of transferring the algorithm and database from xcel to a more performing software he online form created in 2022 has also been maintained for 2023 to guide ponsees in the process of sending the sponsorship request he platform intends to guarantee greater transparency and traceability, structure and standardise sponsorship requests from potential artners and make quantitative information on the initiatives mandatory, useful for enhancing the L C sponsorship evaluation model

As stated also in the ntegrated olicy, contributions must not be exploited to conceal acts of corruption or any other conduct that is not in line with the Group's principles For this reason, the evaluation relating to their provision by the Company takes into account the relevance of the initiatives, the notoriety of the potential partner, the alignment with the company objectives and the expected benefits n order to guarantee an adequate supervision of activities and to monitor sponsorship initiatives, the Company has a specific " ponsorships and roduct lacement" department, with a core of dedicated resources, in the Corporate Affairs/Coordination and Corporate Affairs and ponsorships upport areas Requests for sponsorship and donations are received by the relevant departments through a dedicated platform with an online form published on oste taliane's institutional website, and are then assessed by the ponsorship and Liberal Donations Committee, which is chaired by an external Chair with high requirements of professionalism, honourableness and independence Furthermore, in order to proceed with the disbursement of the contribution, an assessment is also made regarding the consistency of the initiative with the contractual content, the regular performance of the activities and the correct execution of the contractual obligations

he management and reporting activities of sponsorship and donation initiatives are subject to O 37001:2016 (Anti-Corruption) and O 9001:2015 (Quality) Certification he anti-corruption management model constitutes a tool with which oste taliane intends to further strengthen and manage the processes for preventing the risks of offences specific to the subject matter covered by the certification, to continue along the path of strengthening the safeguards of legality and transparency, and to further strengthen the control and governance mechanisms

During 2023, the ponsorship and Donations Committee met 10 times, evaluating a total of 382 initiatives, of which 94 had favourable outcome n continuity with previous years, in the choice of initiatives to be supported, priority was given to those with a significant social impact, aimed in particular at the peripheral areas of the country hrough initiatives and interventions benefiting increasingly large and capillary territorial areas, oste taliane has involved the entire national territory, with the aim of strengthening its presence in the territory

382 initiatives were evaluated by

the ponsorship Committee, which met 10 times in 2023

n particular, the target of increasing the number of talian Municipalities involved in initiatives supported by oste taliane of 10% compared to 2022 was largely achieved in the financial year 2023, thanks to the involvement of 384 talian Municipalities

oste taliane continued to support events and initiatives throughout the country with a preference for projects of a sociocultural nature n particular, importance was given to the company's presence in peripheral territories, strengthening its intervention in favour of local communities by supporting initiatives to promote the sectors related to Culture and Art, without neglecting support for initiatives falling within the "Well-being and ocial nclusion" sphere aimed at the most vulnerable people living in situations of hardship

n order to identify specific K s that measure the benefits generated by the initiatives for both the community and the business, oste taliane uses a monitoring tool based on the classification and measurement standard proposed in the London Benchmarking Group (LBG model), which establishes specific criteria for managing, measuring and reporting on community involvement, according to principles of transparency and participation

he Company is pursuing a new backbone of intervention towards community welfare logic, in synergy with local communities for company welfare services to support the vulnerabilities of employees and citizens Community welfare represents an innovative perspective to accompany and support territorial systems to undertake a path of redesign and adaptation of responses to community needs he objective is to activate responses capable of triggering participatory processes that guarantee the involvement of society and citizens, making the innovation produced more incisive, stable and sustainable he company's action involves making welfare solutions and services available both to employees and their families, and to local citizens, through forms of collaboration with the hird ector and local authorities

n this regard, the plan led to the redevelopment and release of a company property located in Bologna to create meeting and socialisation places for people belonging to weak or vulnerable groups he project also envisages the involvement of company volunteers in providing their professional and personal time and skills o this end, a scouting exercise was carried out to identify the main local needs and best practices for assessing the local context and mapping the perimeter of the ecosystem in which the company space will move On the basis of the main local needs, synergies and coparticipations will be verified also through the network of the third sector as "network facilitators" for the realisation of inclusive and aggregation services addressed to the community and the primary reference targets, enhancing the available physical space in a flexible way, in an underlying logic of evolutionary social circularity in the encounter between demand and supply in which the players involved are both users and suppliers of the services

n order to provide support to policyholders living in the areas affected by the floods in milia-Romagna, Marche and uscany, the oste Vita insurance group has implemented a plan of initiatives in response to the difficulties faced by the population n relation to non-motor damage, measures were taken such as the extension of arrears periods, the waiver of policy cancellation deadlines, the suspension of recovery actions and the strengthening of the expert network For life insurance policies, on the other hand, the extension of the arrears period and the possibility of reactivating suspended contracts without further health checks have been provided for hese initiatives, aimed at customers residing in the affected municipalities of milia-Romagna, Marche and uscany, remained valid until 31 December 2023

Moreover, in July 2023, the disbursement of the first economic measure of support to the population affected by calamitous events in milia-Romagna began by bank transfer and in cash, at the ost Office network, as provided for in the Agreement signed with the Civil rotection Department at the residency of the Council of Ministers

On 25 May 2023, the Memorandum of Agreement was signed, which envisages the possibility for employees to adhere to the solidarity initiative known as "Ora tica" ( thical Hour) in favour of the Civil rotection committed to help the populations of milia-Romagna affected by the recent floods, which consists in donating the equivalent of one hour's work he Company also undertakes to pay to the Civil rotection an additional amount equal to that collected from employees he same solidarity initiative was undertaken in favour of the region of uscany affected by extraordinary atmospheric events by virtue of the Memorandum of Agreement signed between the Company and the rade Unions on 27 ovember 2023

The "solidarity" stamp for Emilia Romagna

oste taliane collaborates with the Ministry of nterprise and Made in taly to support the area affected by the floods

n order to help the areas affected by the flooding in milia Romagna, the Council of Ministers authorised the issue of a "solidarity" postage stamp, with which to celebrate the civic sense of those who were involved in making people and the territory affected by the weather events safe he stamp was in fact issued with a surcharge over the face value of €3 75, the beneficiary of which is the Civil rotection Department, for the allocation of resources to the areas affected by the exceptional adverse weather and flooding events that occurred in May 2023 As stipulated in the issuing order, the stamps will be distributed and marketed until 31 December 2024, after which date they will cease to be valid he stamps are issued by the tate through the Ministry of nterprise and Made in taly, printed by the stituto oligrafico Zecca dello tato ( tate Mint and olygraphic nstitute), and entrusted to oste taliane for marketing in the philatelic counters of ost Offices across the country n the immediate aftermath of the flooding, oste taliane made every effort to quickly return and guarantee its services to the population oste taliane, thanks to the commitment and sense of responsibility of its people, guaranteed the functionality of the ost Offices located in the areas most affected by the flood hese include the ost Office in Lugo di Romagna, which was back in operation almost immediately, and the one in Modigliana, which was restored thanks to the intervention of oste taliane technicians, who installed a mobile network kit he Company has also temporarily provided an alternative delivery service for residents of the province of Bologna residing in evacuated homes or areas that cannot yet be reached, maintaining this service until the end of August

Poste Italiane and the National Institute of Oceanography and Geophysics in Seismic Movement Monitoring A shared commitment to ational ecurity

n 2023, oste taliane will continue to support the OG ( ational nstitute of Oceanography and xperimental Geophysics) in the constant monitoring of seismic movements, particularly in seismic areas such as the orth ast he Company actively cooperated by making itself available for the installation of seismographs in its buildings he Group's prompt response to the nstitute's request enabled the initial installation of 42 seismographs, out of a total of around 100 planned n order to ensure careful monitoring without disrupting the daily activities of the employees, the seismographs were placed inside the racks, structures specially designed to house the servers and from which the telephone lines branch off his strategic collaboration focused not only on workplace safety, but also on the effectiveness of seismic monitoring in the various areas of the territory, thus contributing to the promotion of the safety and well-being of the communities involved he synergy between oste taliane and OG remains a key element in guaranteeing continuity of service and protection of seismic areas

Kiev, Mariupol, Lviv and Odessa: four stamps dedicated to refugees from Ukraine

oste taliane for the protection of rights and freedoms

n continuity with 2022, with the aim of providing support to the population affected by the humanitarian crisis linked to the outbreak of the conflict in Ukraine, oste taliane undertook actions to support the Ukrainian people, including symbolic initiatives with high institutional value n 2023, four ordinary stamps belonging to the "Civic ense" thematic series were issued by the Ministry of nterprise and Made in taly, dedicated to the afeguarding of Rights and Freedoms: the Churches of Kiev, the heatre of Mariupol, the quare of Lviv, the ort of Odessa he issues included a surcharge of €1 30 per stamp, with a print run of 400,005 copies per stamp n addition, in ovember, oste taliane announced the issue, by the Ministry of conomic Development, of an ordinary stamp belonging to the same thematic series, with a value of €1 25 and a print run of 300,015 copies in sheets of 45 copies

A New Life for Small Municipalities

oste taliane plays an essential role in connecting institutions, communities and territory ts widespread presence throughout the country contributes significantly to the country's prosperity, enabling citizens to access the largest network of services through an omnichannel offer

hrough the implementation of new digital infrastructures integrated with the ublic Administration, oste taliane is tackling the problem of "desertification" in small towns, which, over the past fifty years, have experienced a significant loss of their population, now at risk of depopulation his situation is due to a number of factors, including limited job opportunities, difficulties in transport and the gradual decrease in services, such as bank branches and public offices n this context, investments in services and infrastructure are of strategic importance,

Zero ost Offices closed in 2023

as they can positively affect the quality of life of those who wish to stay in or return to small towns

he Group continues its investments in the programme launched in ovember 2018, aimed at supporting the communities of mall Municipalities, aware of the important role it plays in the national socio-economic dimension he project demonstrates oste taliane's commitment to consolidating a robust and active relationship with the territory, in order to promote initiatives aimed at encouraging the development and inclusion of less served territories

n 2023, maintaining continuity with previous years, the Group ensured continuity of services through timely and transparent dialogue with local and central institutions n addition, training initiatives aimed at the public were promoted, ranging from financial education to digital education oste taliane responded promptly to the requests from local communities, particularly regarding the risk of depopulation As a result, the Company decided to intensify investment in the peripheral network, actively involving local authorities to point out the specific needs of their territories, thus helping to consolidate the Company's presence in local communities

oste taliane also reiterated its commitment against commercial desertification in small mountain municipalities, participating as a partner in the ational Assembly of Uncem, the ational Union of Mountain Municipalities, Communities and Bodies entitled "Communities, institutions, territories - Countries for the country, autonomies in dialogue in the

community dimension" he Assembly, held in Rome on 4 December 2023, represented a moment of dialogue between central and local institutions, the world of associations and businesses, key players in the growth of mountain areas

n 2023, oste taliane's commitment to service innovation continued hrough the use of the nternet of things, the Company continued with the mart Letterbox project, the letterboxes capable of recording and transmitting data on the environment and weather conditions through sensors that detect temperature, atmospheric pressure and air quality ome mart Letterboxes are also equipped with a screen capable of conveying public utility communications, thus making it possible to create a capillary communication infrastructure even in areas where ublic Administration offices are absent he new tool is also a way for oste taliane to rationalise its mail collection operations, reducing their time his is because the sensors in the mart box are able to detect the moment when a letter is posted, allowing the post officer to know which boxes contain mail and therefore need to be emptied, with obvious advantages also in terms of environmental sustainability Following an initial test phase in 2022, 550 second-generation mart letterboxes, 500 without a screen and 50 with a screen, were installed in 2023, which, added to the letterboxes installed in 2022, results in a total of 707 letterboxes n addition, K s for describing process performance were consolidated in the applications for managing the data collected from the letterboxes and implementation was carried out for sharing process data with L DA in order to optimise the collection process n addition to the new installations, oste taliane undertook a continuous monitoring activity to upgrade the letterboxes in the area and thus contribute to improving urban decorum

Postel at the service of smart health screening campaigns

he oste taliane Group promotes the importance of health prevention

ostel, a company of the oste taliane Group, has promoted the " mart creening" solution, aimed at promoting citizens' adherence to health prevention campaigns promoted by the local health authorities he service provides a complete kit, distributed via post officers, which includes an invitation letter, an information leaflet with instructions, an RF D-tagged self-sampling tube and a return envelope with RF D matched to the tube he citizen receives the kit at home, follows the sampling instructions and returns the sample

During the dispatch of samples, the envelopes are checked by means of an electronic read-out that signals any mismatch errors he Microsoft ower B dashboard analyses and organises campaign data, highlighting response times, effectiveness of communication channels and providing customised reports

With owerB 's OpenA functions, future campaign trends are analysed and actions are suggested to make them more effective, considering channels, optimal times to send, more effective content and target profiling he simulations provide data on costs, time, effectiveness and traffic generated in the workshops, enabling informed decisions for the design of new campaigns

ostelvideo also makes it possible to enrich communication with customised and interactive videos to convey prevention messages clearly and effectively he service offers secure tracking and correct matching of samples thanks to mart Label/RF D technologies, reducing costs and acceptance times

At 31 December 2023, oste taliane had achieved significant goals within the Group's broader trategic lan, focused on enhancing one of the fundamental resources for the Company and the country: the territory and the communities that inhabit it n line with environmental sustainability objectives, oste taliane's commitment to achieving carbon neutrality by 2030, with a consequent reduction in emissions and the environmental impact deriving from its activities, is further consolidated in relation to the initiatives promoted by the Group to favour small municipalities

n this perspective, lies the ambitious purpose of the " olis roject - Houses of Digital Citizenship ervice", aimed at providing small municipalities with a state-of-the-art technological and digital infrastructure, enabling the automation of services and the rapid adoption of new digital services offered by the ublic Administration he project constitutes a significant step in the fight against the depopulation of small municipalities, in line with the support for the country's digital transition, as outlined by the ational Recovery and Resilience lan ( RR) and the ational lan for Complementary nvestments ( C) oste taliane, in addition to consolidating the relationship with its vast clientele, contributes significantly to the optimisation of processes within the ublic Administration hrough the initiatives undertaken to realise the project, oste taliane is taking an active part in the mission to boost training, the efficiency of the ublic Administration and the competitiveness of the talian production system n 2023, there were a total of 1,190 ost Offices and by 2024, 2,800 real estate and technological upgrades will be started or completed in the ost Offices themselves n addition, in order to support the implementation of the project through the realisation of specific training activities, an online course aimed at the entire company population was implemented in 2023 n addition, the following specialised courses were realised: online course " olis roject: certificates" and " raining on the job" webinars, already delivered in 2023; course " olis project: A R certificates"

With the aim of ensuring the widest transparency in awarding procedures, with a view to maximising the protection of the dynamics of free competition in the market, the data on awards relating to the " olis roject" have also been included in the portal set up by oste taliane for the exclusive use of the Guardia di Finanza, for the prevention of criminal infiltration in procurement and the fight against undeclared work oste taliane has also created the "Contratti Aperti & rasparenti" portal, a web space that can be consulted by everyone with the main information on each contract Within the portal, it is also possible to find out the details of the individual " olis roject" contracts concluded during the month with the amount, duration, product scope, award procedure, type, location and name of the successful bidder he data published relate to contracts signed in respect of competitive procedures relating to the supply of goods and services, of Community relevance, and works subject to the ublic Contracts Code in addition to those relating to the supply of goods, services and works excluded from the ublic Contracts Code

2023 Annual Report

Polis Project

oste taliane is taking an active part in the mission to boost training, the efficiency of the ublic Administration, and the competitiveness of the talian production system, thanks to a specific line of action called " olis roject", financed with €800 million from RR funds and a further 400 million from the oste taliane Group, which will involve almost 7,000 ost Offices he roject, aimed at promoting the economic, social and territorial cohesion of the country and overcoming the digital divide in small towns and internal areas, constitutes a major social inclusion programme and comprises two lines of action: the first consists of bringing telematics services of the ublic Administration inside ost Offices with the creation of proximity " ingle oints of Contact": in the 6,933 municipalities with a population of less than 15 000 inhabitants, equipped with at least one ost Office; the second, " paces for taly", plans to make 250 spaces available throughout the country, 80 of which will be activated in municipalities with less than 15,000 inhabitants, converting them into co-working spaces of small (about 100 square metres), medium (about 450 square metres) and large (about 1,500 square metres) size, all interconnected to form a single digitalised and smart network Within the webpage dedicated to the roject, detailed information is given on the ost Offices (number and location) involved in the digital renovation and enhancement process

With regard to the " portelli Unici" (one stop shops) line of action, the aim is to equip the ost Offices concerned with new technologies and tools to allow, 24 hours a day, a complete, fast, easy and digital use of services relating to: identity documents, civil registration certificates, judicial certificates, social security certificates, services to the regions and other types such as, for example, the exemption from the RA licence fee hrough the development of physical-digital access channels such as the Counter, the otem, the evolved A M, the Call centre and the Web channels, and thanks to the support of a special platform developed to deliver services in multi-channel mode, ost Offices will be transformed in order to make a widespread, concrete and resilient contribution to the achievement of the objectives that the uropean Union and taly have set themselves with the " ext Generation U" plan, in terms of digitalisation and social inclusion n addition, the ost Offices network, thus transformed, can also be made available for the deployment of further government and A initiatives on connectivity and cloud services pecifically, the line of intervention envisages the installation of 4,000 self-service columns for the use of public utility services, 7,000 evolved A Ms for the provision of services to citizens, 500 lockers for the use, 24 hours a day, of mail, parcel, e-commerce and public utility delivery services, and 4,000 interactive digital shop windows for communication with citizens n addition, the roject also envisages the implementation at ost Offices of interventions aimed at environmental sustainability and social growth of communities n particular, the following will be installed: 5,000 electric vehicle recharging stations available to the Group's delivery fleet, which will be made entirely green, and to local communities; 1,000 photovoltaic systems that will help reduce CO2 emissions; smart building systems and environmental monitoring sensors; 1,000 outdoor spaces equipped to host cultural, health and wellness initiatives n addition, by providing the possibility to access ublic Administration services from a One top hop, citizens' journeys and the consequent congestion of roads and public offices will be reduced, allowing the reduction of CO² emissions

he objective of the second line of intervention is to create the most widespread, digitalised, accessible and immediately available co-working network in the country: workstations, meeting spaces, shared services, areas dedicated to events and training whose use will be open to private individuals, companies and the ublic Administration, universities, and research centres with which service agreements can be defined to best meet the needs and vocations of each type of stakeholder he national co-working and training network will be able to offer interested administrations and local stakeholders physical locations where they can test innovative solutions of broadband-supported services dedicated, for instance, to distance learning, health, safety, becoming an essential partner for the transformation of services and the acceleration of

economic and social growth he network, which is based on the transformation of important oste taliane office buildings and large ost Offices entirely made available to the roject, will also be an important reference point for the innovation of small and medium-sized enterprises and for the enhancement of cultural and natural assets, being present in various industrial districts and in the areas of greatest cultural and tourist attraction

he olis roject covers an area where approximately 40 million people reside, or 65% of the talian population n this regard, oste taliane has estimated that in the first six years of operation, the olis roject will generate a positive impact on the community and the environment worth a total of €380 million, of which 348 million will be for road safety and the reduction of traffic and waiting times, and 32 million for the reduction of polluting emissions he Group also estimated an impact generated by the roject over the investment period 2022-2026 and the operation of the ost Offices until 2031 of €1,061 million in terms of GD and €484 million in terms of the distribution of labour income, for a total of 18,600 jobs created

Finally, the olis roject generates significant impacts throughout the territory, also with a view to achieving the ustainable Development Goals ( DGs): Gender equality ( DG o 5); Clean and affordable energy ( DG o 7); Decent work and economic growth ( DG o 8); nterprise, innovation and infrastructure ( DG o 9); ustainable cities and communities ( DG o 11); Combating climate change ( DG o 13); Life on earth ( DG o 15); eace, justice and strong institutions ( DG o 16)

Cresco Awards sustainable cities 2023

n line with oste taliane's mission to act as a link between the country's institutions, territory and services through its extensive network of ost Offices, the Group participated again in 2023 in the prestigious Cresco Awards ustainable Cities award his initiative, promoted by the odalitas Foundation in collaboration with the ational Association of talian Municipalities (A C ), and under the patronage of the uropean Commission, the Ministry for the nvironment and nergy ecurity and C R urope, aims to reward the commitment of talian municipalities to the sustainable development of their territories

he company awarded the prize "For the sustainable development of small municipalities" to the municipalities of ibionno (Lc) for the " ibionno Band" project, Rapino (CH) for the " arco della Gioia" project and Molochio (RC) for the "Borgo della Longevità" project he aim of the projects and programmes being developed is to contribute to the creation of virtuous sustainable development styles and behaviour

"Valori ritrovati" (Rediscovered values): a project of circular economy

n continuation of the agreements signed in 2018 with Caritas, and subsequently renewed in 2019 for an additional period of 5 years, the implementation of the initiative called "Rediscovered Values" continued during 2023, a circular economy project that has the aim of allocating the so-called "anonymous packages" or "abandoned packages" to needy families, through " mpori della olidarietà", a circuit of supermarkets managed by Caritas that provides basic necessities free of charge he aim of the collaboration is to restore abandoned parcels and allocate them to the neediest families oste taliane promotes local development through initiatives of inclusion and social solidarity hanks to the support of its employees, who participate as volunteers, oste taliane recovered more than 25,000 items from abandoned parcels in 2023, which were redistributed through Caritas centres to needy individuals and families or resold at subsidised prices for a charitable purpose, specifically for projects for the employment inclusion of people in difficulty

oste taliane recovered 150 tonnes of abandoned parcels thanks to the support of its employees, who participate as volunteers his circular economy project has a total economic value of more than €600 thousand Approximately 35,000 anonymous or abandoned parcels have been delivered to Caritas every year since 2019, thus fostering the culture of reuse

Il Volontariato d'Impresa (Corporate volunteering)

Corporate volunteering represents an ethical choice of the Company and a concrete commitment for the sustainable development of the community, in line with the values and principles stated in the Code of thics and the ustainability olicies hrough volunteering, the oste taliane Group encourages, supports and organises the active and concrete participation of all its staff in the life of local communities and non-profit and social enterprise organisations throughout the country n 2023, with the " do good" campaign, the Company inaugurated its corporate volunteering model, progressively launching the first initiatives starting in eptember he programme is promoted in cooperation with accredited hird ector Organisations ( ), within the framework of the Memorandum of Understanding signed with the ational Forum of the hird ector, an association that brings together 92 national networks of s, for more than 150,000 territorial organisations operating throughout the country Among the aims of the protocol is, in fact, the definition and development of activities and initiatives to support the creation of a corporate volunteering platform, through which hird ector Organisations can submit projects in which oste taliane employees are invited to take part as volunteers, outside working hours hanks to the Forum network, meetings were organised at the beginning of 2023 between the Company and a number of hird ector Organisations, aimed both at illustrating the characteristics of the chosen volunteering model, the requirements and the procedures for joining the programme, and at gathering suggestions and any useful information to ensure the best definition of the programme itself in line with the needs and peculiarities of the reference operating context n addition, the modalities through which it is possible to submit proposals for voluntary initiatives to be developed in partnership with the Company have been published in the web section dedicated to Voluntary Associations on oste taliane's institutional website

ince the launch in June 2023, there are about 40 Organisations with which the Company has entered into dialogue aimed at collaborations in the field of corporate volunteering n assessing and, if necessary, launching and monitoring initiatives, the Company operates in compliance with the provisions set out in a dedicated internal procedure entitled "Definition, development and monitoring of corporate volunteering initiatives", which is consistent with the oste taliane Group's ustainability trategy At 31 December 2023, about 300 employees have decided to join the corporate volunteering network by registering on the "Corporate Volunteering" web portal, choosing to apply for one or more thematic and territorial initiatives of interest among those published on the portal since June As of eptember 2023, the first widespread initiatives in the area of social, cultural, human rights and environmental protection, both occasional and ongoing, were launched

oste taliane's volunteering model intends to enhance its own people, who are already sensitive and active in the world of volunteering, involving them in the positive change that the Company wants to contribute to producing through this instrument, creating a network of solidarity in the area and strengthening the collaborative skills among people, so as to

foster the development of social networks that can create long-term value for the Company and the area he ultimate goal is, in fact, to make a significant impact on society by promoting virtuous volunteering

he corporate volunteering model adopted therefore necessarily envisages active collaboration with hird ector partners for the promotion and development of volunteering initiatives that can generate social and environmental impacts, thus contributing to the achievement of common sustainable development goals o achieve this, constant listening and networking with hird ector Organisations was crucial o this end, the aforementioned protocol with the ational Forum of the hird ector provides for the support of a permanent discussion table, in line with the Group's stakeholder engagement policies

World Cleanup Day oste taliane acts for the environment

On the occasion of World Cleanup Day, on 16 eptember 2023, oste taliane called on its colleagues to participate in the "clean up", a social initiative that tackles the global problem of pollution from abandoned or illegally disposed of solid waste through local clean-up actions in order to raise awareness among citizens and institutions and safeguard the health of the environment

treets, beaches, parks in Andria, aples, Rome and Venice were involved in the cleaning, manual collection and sorting action

he initiative was very well attended by employees, who are already very sensitive to environmental protection

Close to young people

n continuity with previous years, oste taliane is supporting the digital transformation path in collaboration with the academic world As part of the initiative promoted by the Data cience ndustrial Liaison rogramme ( L ), oste taliane continued its path of bringing together taly's most important industrial companies and the students of the university's degree course he objectives of the L include identifying opportunities for internships or final projects for students, including presenting the latest industrial products for big data management and analysis, and explaining their use in the development of innovative solutions for business and the company n general, the aim of the initiative is to introduce students to the labour market, showing them opportunities in large companies such as oste taliane, a company with the highest number of employees in taly

n 2023, the chool4Life 2 0 project, aimed at combating high school drop-outs, continued he initiative involved a total of 143 schools, approximately 14,500 students from different regions of taly and 11 important companies, including oste taliane, with the coordination of Consel Consorzio L , a non-profit organisation in the training sector that benefits from the support of over 100 large groups and M s ocial responsibility sees companies committed to supporting the younger generations, accompanying them towards a professional future that links school and business For this reason, the aim of the chool4Life 2 0 project is precisely to offer the new generations a direct insight into the world of work, as well as to make them aware of their own potential thanks to school and career guidance he Company experts with their testimonies have trained over 660 young people belonging to 14 schools distributed throughout the national territory Role models, mentors and trade masters are the roles that the company experts identified play to inspire young people and guide them in their study and work choices, promote the expression of their critical thinking, transfer trade-related skills and bring them closer to the world of work he project was also an opportunity to promote a generational exchange between company testimonials and young people with benefits in terms of dialogue, listening and mutual enrichment ssues related to the

goals of the U 2030 Agenda were also addressed, with a focus on promoting the approach of the student population to M subjects, giving students food for thought and contextualisation through workshops in which to realise their projects Finally, together with the most motivated students who were engaged in a Creathon, some children and grandchildren of employees also participated in the role of Buddy, facilitating and supporting within the groups the implementation of the design thinking phases

Finally, oste taliane promoted ten special projects to support children and young people with fragility and their families, included in the wide-ranging social action plan " resenti sul territorio, vicini alle comunità" ( resent in the territory, close to the communities) he package of actions in support of children was realised in collaboration with ten non-profit organisations of national importance selected by oste taliane: Canovalandia, Fondazione Don Rigoldi, La Caramella Buona, Associazione taliana Cuore e Rianimazione "Lorenzo Greco", Le Ali dei esci, Bambini delle Fate, Associazione Andrea udisco, Dynamo Camp, Fondazione heodora and Be&Able

n continuity with previous years, with the aim of enhancing the synergies of tools, methodologies and skills aimed at fostering dialogue with citizens on issues of social and inclusive value, several initiatives were launched within the "Digital ducation" and " ostal ducation" programmes n particular, within the programme dedicated to Digital ducation, the following free webinars were realised for customers, users and citizens:

• 20 "basic" level webinars, targeting a regional scope;
• 11 thematic webinars, aimed at a national scope;
• 8 thematic webinars aimed at a national scope, included in the path dedicated to Freelancers and mall Business Operators;
• 6 Macro Area perimeter webinars dedicated to basic digital literacy for Freelancers and mall Business Operators and with L ( talian ign Language) interpretation service
• With regard to ostal ducation activities, on the other hand, 20 "basic" level webinars addressed to a regional perimeter and 3 thematic webinars addressed to a national perimeter were carried out, free of charge and aimed at customers, users and citizens

he web sections are constantly being updated with the publication of new multimedia content in different formats such as podcasts, games, video clips and infographics

All initiatives are also supported by communication activities on social platforms, G oste services, press agencies, articles on the G oste portal and local press

Hires oste taliane supports young people and recent graduates

oste taliane recognises the value of younger resources in facing the new challenges emerging in an increasingly digitalised and changing environment Moreover, the Company, aware of the competitiveness that characterises the world of work today, considers it essential to offer young people a work opportunity that allows them to explore their skills and express their potential, confirming its commitment to supporting the development of the community in which it operates

n continuity with previous years, oste taliane promoted the employment of young people n 2023, the Group continued its recruitment campaign aimed at young people and recent graduates, recruiting more than 6,700 people under the age of 30 over the three-year period 2021-2023

MAIN RELATED TYPES OF CAPITAL

Dialogue and transparency in relations with the authorities

n view of its capillary presence throughout taly, as well as the varied context in which it operates, the Group collaborates with central and local institutions in order to represent corporate interests and promote socio-economic development projects, constantly implementing positive dialogue with public decision-makers, which enables it to generate benefits that are not only circumscribed to the corporate sphere but system-wide, thus extending to the community as well

n particular, as part of its collaboration with central institutions, such as the Government and arliament, oste taliane constantly monitors the political agenda and holds meetings with institutional subjects aimed at presenting the Group's activities and projects, through continuous and constructive dialogue his relationship is conducted in a logic of mutual benefit, as it implies a prior transparent discussion with the public decision-maker in which the Company's position on certain issues of interest is represented his not only prevents problems of interpretation and application, but often generates opportunities, as the decision-maker can assess the impact and possible consequences of a given policy choice or regulatory intervention with a wider range of elements

Poste Italiane, in addition to ensuring a valid provision of services to citizens, the satisfaction of the social requirements of the community and, at the same time, the increase in competitiveness and business continuity, aims to maintain a constructive and persistent dialogue with the institutions in order to promote the sharing of territorial development initiatives

he institutional activity carried out by oste taliane develops, in particular, along two lines:

• towards the Group: continuous dialogue with nstitutions and the ublic Administration enables the business structures to be supported in meetings to present their activities to institutional representatives, in order to facilitate dialogue, intercept the needs expressed by the ublic Administration and synergically promote the services of the entire Group More generally, the protection of corporate interests is guaranteed in support of business development through the monitoring of the institutional framework, the evaluation of the impact of regulations, the identification of risks and opportunities, the preparation of texts and positioning documents with the specialist functions and the representation of requests to institutions;
• towards institutions, actively contributing to the institutional dialogue through an ongoing debate on issues of relevance for the country system, including through meetings involving a study of the main topics of interest for institutional stakeholders, in order to intercept the needs expressed by political representatives that can be satisfied through oste taliane's services nstitutional activity also extends to consultation on the impacts of regulations in the relevant

markets, the provision of supporting information and knowledge and the activation of partnerships for project development

he promotion of dialogue with representatives of institutions is necessary for the Company in order to stimulate knowledge and sharing, but also to prevent possible critical issues in relation to the Group's activities hrough specific meetings and

meetings with local administrators during 2023

1,600

analyses, requests coming from the institutions are received and subsequently examined in depth with the company structures concerned in order to provide immediate and circumstantial answers Furthermore, through the study of institutional scenarios, potentially relevant areas for the Group are identified in order to promote appropriate preventive actions

he analysis of the impacts of the regulations can also generate the need for institutional dialogue aimed at clarifying in detail the application aspects of a regulatory provision, or to support the presentation of regulatory proposals aimed at supporting specific business needs, with the aim of mitigating or preventing specific risks n this regard, during 2023, steps were taken to guarantee the protection of corporate and Group interests through the preparation and organisation of targeted meetings and the management of continuous discussions with institutional representatives, through an activity to monitor the provisions under examination and the regulatory provisions, which, if approved, would have been critical for the various business areas with loss of revenue or increase in operating costs for the company

During 2023, company-initiated regulatory interventions mostly focused on:

• innovation and digitalisation, which are fundamental for the strategic progress of the country, for the accessibility and functionality of the services offered to citizens and the connection with the ublic Administration (implementation of the olis roject and of the "Carta dedicato a te", a reloadable card issued by oste taliane as the implementing party and intended for the purchase of goods and services for a specific group of beneficiaries);
• protection of the mobile telephony and energy business, through interventions aimed at ensuring rules oriented towards market competition and customer protection;
• measures to encourage households to save and invest in savings products backed by government guarantees;
• regulatory simplification measures aimed at easing the administrative, accounting and procedural burdens involved in accessing the business incentive system and related facilities by beneficiary companies

nstitutional interlocutions were also conducted with the Ministry of conomy and Finance aimed at protecting the Group's economic and financial interests, within the framework of credit/debit relations governed by numerous agreements, maintaining relations of mutual trust with the Ministry itself, which oversees numerous affairs of strategic interest to the Company

During 2023, there was further impetus in the activities of discussion and collaboration with institutions in connection with the launch and implementation of the olis project At its presentation on 30 January 2023, in the presence of top state officials and an audience of 5,000 mayors, the institutions recognised the strategic importance of the project, which brings the state closer to its citizens through its services n view of this, said event was followed by specific meetings to present the roject to the main Ministries and public players involved

n addition, specific technical working groups were set up to support the implementation of the project with the institutions involved - the Ministry of nterprise and Made in taly, the Ministry of the nterior, the Ministry of Justice, the Department of ublic Function, the Department for Digital ransformation and - in relation to the services identified and to be provided at the ost Offices involved, and constant dialogue was promoted with the ublic Administration in order to accompany the definition of agreements, the resolution of regulatory issues and the overall support to the process of releasing the services within the timeframe set out in the plan ach meeting was tracked in a special monitoring dashboard coordinated by the Corporate Affairs function, called " olis Dashboard"

Activities oriented towards the management of institutional relations, in particular legislative activity and the representation of interests, are regulated through the procedure "Release of information and management of relations with institutional entities" his procedure is subject to periodic review and updating in line with the evolution of the system of relations and the company organisation lanned interventions, whose impact is subsequently assessed by the proposing corporate and/or business functions, are supported by analyses of the expected benefits hese are subsequently presented in periodic reports in order to outline the extent of the initiatives undertaken in economic, commercial and governance terms he priorities for action, consistent with the Company's lan objectives, are identified in relation to the needs emerging

from the business functions and the margins for action connected to the legislative activity of the Government and arliament, as well as the administrative activity of the ublic Administration

Collaboration with local institutions is oriented towards facilitating the sharing of development projects in the area, and identifying shared solutions aimed at accompanying corporate reorganisation processes, with particular attention to the specificities of the different territories his approach aims to promote more efficient service delivery to citizens, meet the social needs of the community, and simultaneously promote competitiveness and ensure business continuity158F 159 . romoting interactions with representatives of local institutions is essential for the Company in order to encourage knowledge and sharing, preventing potential critical issues related to the Group's activities n particular, the onset of negative impacts can manifest through critical institutional demands or negative media returns he management of these impacts takes place through territorial oversight and the appropriate central structures, through an internal analysis aimed at examining the characteristics of the various criticalities o share the solution agreed internally between the heads of the nstitutional Relations structures and those of the Business Units involved, this process is subject to reporting, and is supported by the implementation of an institutional ortal for the integrated management and archiving of requests, reporting and contacts n order to evaluate and verify the actual quality of the actions undertaken, quality and quantity indicators are used on a monthly and quarterly basis inserted into global report analyses and managed with a comparative perspective between geographical areas and compared to previous years his reporting is based on monothematic meetings and final analyses of the development of the commitments undertaken towards the institutions, on a weekly and monthly basis in relation to the requests received During the reporting year, some 1,600 contacts with local administrators were organised remotely or by telephone, of which about 1,200 were related to the olis roject

Collaborative activities with local institutions during 2023 helped foster the implementation not only of the olis project, but also of specific projects related to the mall Municipalities roject to support less densely populated realities, as well as the House of Digital Citizenship ervice his was made possible, specifically, through the management of relations with the administrations involved in the project, the selection and reporting of activities in the municipalities concerned, the linking of institutional evidence, and the planning thereof on the basis of business needs

According to the subject, the institutional evidence of 2023 can be broken down as follows:

• 674 for the functioning and operation of ost Offices;
• 423 for ostamat A Ms (installation/replacement requests);
• 381 for clarification regarding the olis roject;
• 196 for the delivery service;
• 127 for real estate issues;
• 41 for ost Offices that have had their timetable rescheduled as a result of the Covid-19 health emergency

he effective dialogue between oste taliane and the Consumer Associations started in 1999 and gradually evolved over the years until the first Framework Agreement was formalised in 2011 his agreement was subsequently renewed, in 2014 and again in 2018 he main objectives of this agreement are summarised in the following points:

• constant improvement of the quality of oste taliane's products and services;
• promotion of transparency and fairness of the Company's relations with consumers;
• improvement of consumer awareness of the products and services on offer;
• provision of information for the correct and conscious use of products and services, as well as for the dissemination of the instrument of joint conciliation

¹⁵⁹ oste taliane is a member of Confindustria (Confederation of talian ndustry) on the basis of a specific agreement that has been renewed on a multi-year basis since 2005 his agreement regulates membership procedures, the benefits deriving from the status of associate and the definition of the contribution regime For the association year 2023, the membership fee stands at €3 2 million

he Framework Agreement also established the Consumer Workshop, a monthly periodic consultation table with representatives of the Associations, aimed at presenting a preview and detail of the products and services offered by oste taliane

A further objective of the relationship with the associations is to follow the Conciliation procedures, as provided for in the Agreement itself, in order to peacefully resolve disputes relating to all areas of the Company's activity Finally, in accordance with the principles established in the agreement, which promotes collaboration based on transparency and the sharing of information for the benefit of customers, the newsletter "Dialogue with consumers" was established

Constant and transparent relations with consumer associations continued in 2023, therefore, on the basis of the Framework Agreement, the Consumer Forum and the newsletter "A dialogue with consumers" Among the topics covered are the oste taliane Group's new energy offer, the olis roject, the Repricing of the Banco osta Account, and the public consultation launched by Agcom on the subject of compensation in the postal sector On the subject of training, two courses were organised for postal conciliators during the year, and a tour of 15 territorial meetings involving some 250 association representatives took place in ovember and December he aforementioned activity is regulated and described in the company procedures laid down in Legislative Decree no 231/2001, as well as in the procedures established on the basis of the Framework Agreement concluded between the Company and Consumer Associations hese procedures are referred to in the documents provided for by Legislative Decree no 231/2001 he success of the adopted policies is being monitored and evaluated, with particular reference to the absence of critical interventions by consumer associations in national and local media

Relations with consumer associations at central level are managed by the function "Relations with trade and consumer associations" his function consists of a manager, five resources in the Rome office and one in the Milan office Relationships with consumer associations at territorial level, especially as regards post-retail conciliation procedures, are managed by the territorial offices of nstitutional Relations and coordinated centrally in a functional manner by the office for Relations with rade and Consumer Associations, with one resource assigned to each of the 6 macro-areas he objectives of the function, included in the MBO of the responsible managers, are evaluated through the analysis of the requests for discussion, considering the percentage of questions reconciled, i e concluded with an agreement with the consumer associations, compared to the total questions discussed

Among the main central institutions and regulatory and supervisory bodies with which oste taliane interacts are: the talian Communications Authority (Autorità per le Garanzie delle Comunicazioni - AGCom), the Ministry of conomic Development (Ministero per lo viluppo conomico - M ), the Ministry of conomy and Finance (Ministero dell' conomia e delle Finanze - M F), the Ministry of Foreign Affairs and nternational Cooperation (Ministero per gli Affari steri e la Cooperazione nternazionale - MA ) and the uropean olicies Department of the Cabinet Office n particular, in the context of relations with the M F, the Convention was renewed, which has the objective of regulating treasury services and movement of funds on behalf of the tate

At a uropean and international level, oste taliane maintains relationships with the uropean arliament, the uropean Commission, the Universal ostal Union (U U), ost urop, G urope uropean Centre of mployers and nterprises providing ublic services (C ), nternational ost Corporation ( C), and other institutions and associations in the Company's areas of expertise he Group actively participates in initiatives of coordination, representation and monitoring of the political agenda, at both uropean and international level, within these organisations Furthermore, the Group is committed to the dissemination of information for regulatory purposes at a national, uropean and international level, as well as contributing to the development of proposals for amendments and additions to the reference legislative and regulatory framework

he Group confirmed its commitment to ensuring access to its products and services also for those who cannot easily access them he capillary extension of its network has enabled the Group to remain close to the community even during 2023

oste taliane supports promoting the protection of the rights of local communities with the aim of guaranteeing accessibility to its products and services in the territories and for categories of users who would otherwise be excluded, in accordance with the principles established in the company policy on safeguarding and protection of Human Rights At the same time, the Company undertakes to promote initiatives aimed at disseminating and supporting the right to study, economic sustainability and social connection, intercepting, thanks to the network of company resources, the needs deriving from the various forms of disadvantage, in order to develop ways of providing products and services that meet the needs of the various categories of customers, in line with the Group's omnichannel strategy oste taliane is committed to promoting the well-being and financial stability of the communities in which it operates, with particular reference to groups at risk of exclusion, by deploying various types of support initiatives aimed at raising awareness and increasing awareness among them

Thanks to its widespread presence throughout Italy, Poste Italiane maintains a close connection with the communities in which it operates, ensuring accessibility to its products and services, with the aim of promoting social inclusion

he Group monitors its initiatives and the offering of products and services through the implementation of continuous and structured dialogue initiatives, such as, for example, the discussion activity with the main internal and external stakeholders, organised on an annual basis he primary objective is to monitor the needs of the community and the level of satisfaction in relation to the products and services offered, as well as to promote the comparison of best practices for the development of an inclusive financial market oste taliane adopts principles of seriousness, reliability and flexibility in providing dedicated offers to all categories of customers to which it is addressed, also taking into account specific needs

Poste Italiane Group Report on Operations at 31 December 2023

Poste Italiane's offering he expansion of the Group's services in 2023

During the year 2023, oste taliane fulfilled its commitment to pursue a 360° sustainable future, expanding the range of services offered with the introduction of new services Consistent with the previous year, the Group promoted the "risparmiosemplice" formula, an open-ended savings plan with a customer-defined periodicity, which can be subscribed to at any ost Office by holders of a Banco osta current account or postal savings book his plan is based on the 4-year nterestbearing ostal Certificate issued by Cassa Depositi e restiti p A By subscribing to this bond within the avings lan, it is possible to periodically set aside amounts, even minimal ones, in order to build capital over time, with the possibility of making further subscriptions he sums deriving from the maturity of nterest-bearing ostal Certificate, subscribed under the lan itself, are automatically reinvested in the "risparmiosemplice" savings plan hese sums include the invested capital and accrued interest, net of tax charges Furthermore, the agreement on postal savings with Cassa Depositi e restiti, renewed in 2021 and amended on 30 January 2024, guarantees the Group sustainable remuneration in the four-year period 2021-2024, with an annual commission for collection objectives of between €1 6 and €1 85 billion hrough this agreement, oste taliane reaffirms its strategic support role for the country

At the end of July 2023, the oste taliane new offer dedicated to cancer prevention campaigns, organised by local health authorities and hospitals in order to increase their participation, was launched on an experimental basis he initiative offers the possibility of home collection of diagnostic samples self-collected by citizens participating in screening campaigns and their return to the relevant A L laboratory

tarting from March 2023, the "Quinto Banco osta" offer was extended to employees of state-owned companies, the loan dedicated to public employees, para-public employees and pensioners, which can be used to carry out new projects, but also to pay off other ongoing financing, with a monthly repayment equal to up to one-fifth of the net monthly salary or net monthly pension

Furthermore, the Group maintained the program to relaunch postal savings, guaranteeing the improvement of the quality and efficiency of the services offered to customers, also through the implementation of the digital channel n particular, online operations on Banco osta current accounts for the purchase of Buoni Fruttiferi ostali were guaranteed 24 hours a day, 7 days a week n addition, the variety of the ostal avings Bond catalogue and the possibility of subscription also online make it possible to meet the various needs of consumers Among the aforementioned Bonds, the following are noted:

• the 3X4 Bond, with interest, fixed and increasing, accruing at the end of each three-year period from the date of subscription and, after 3, 6 and 9 years, is also recognised in the event of early redemption;
• the 3X2 Bond, with interest, fixed and increasing, accruing at the end of each three-year period from the date of subscription and, after three years, also recognised in the event of early redemption;
• the 4-Year lus Bond, with a term of 4 years, provides for the capital invested and interest to be recognised at the end of 4 years;
• the Ordinary Bond, whose interest is fixed and increasing and is recognised in the event of reimbursement after 1 year from subscription and, subsequently, every two months t is possible to request redemption at any time, within the statute of limitations, the return of the invested capital and, one year after subscription, also with the accrued interest;
• the ustainable avings Bond, which pays a fixed return and the possibility of earning, at maturity, a premium linked to the performance, if positive, of the OXX® urope 600 G-X index;
• Poste Italiane Group oste taliane's Financial tatements at 31 December 2023
• the Renew Bond, dedicated to those who have redeemed an nterest-bearing ostal Certificate that expired after 1 August 2023 t has a term of 6 years, with interest, fixed and increasing, accruing at the end of each three-year period from the date of subscription and after three years being recognised even in the event of early repayment;
• the Children's Bond is an investment option designed to support children's big projects he interest on this bond accrues with the children until they reach the age of majority Characterised by a gross annual yield of up to 6 00%, this bond offers the opportunity to grow along with the child, with interest accruing steadily until the child turns 18, guaranteeing a fixed yield during this crucial period Moreover, this investment offers financial security thanks to the 12 50% preferential taxation on interest and the exemption from inheritance tax;
• oluzione Futuro Bond, which is a solid instrument to guarantee a stable income over the years he annuity, consisting of 180 instalments, starts at age 65 and extends until the 80th birthday, offering continuous financial support during retirement he bonds enjoy a preferential tax rate of 12 50% on interest and are exempt from inheritance tax, ensuring an investment experience free of additional financial burdens;
• the nheritance olution Bond, dedicated to beneficiaries of an inheritance procedure concluded in oste taliane, recognises a certain yield at the end of the four-year period

o encourage the use of the digital channel by all citizens, also taking into account the experience gained during the emergency context, oste taliane also encouraged various communication campaigns during 2023 aimed at promoting the online operation of postal savings n order to encourage its customers to manage their postal savings online, the Company offers a wide range of services available through digital channels, ranging from displaying balances and movements for holders of a Libretto mart or Ordinario to the management of the Libretto Minori by parents, from the subscription of dematerialised postal savings bonds to the transfer of money between books and Banco osta current accounts, to the recharging of ostepay cards and the association of BA to the book

Financial and digital inclusion of seniors and young people

oste taliane is constantly seeking innovative solutions aimed at reducing the digital divide and enhancing financial inclusion, with a particular focus on the most vulnerable and at-risk groups he Company is committed to supporting and assisting the different segments of the population within the communities in which it operates, taking into consideration market research and feedback gathered from its customers

On the subject of financial inclusion, the Group continued to promote information and disclosure initiatives, consistent with the activities of previous years hese initiatives aim to provide citizens with the opportunity to acquire knowledge and information in order to enable them to make informed choices in the financial sphere

On the Financial ducation side, in continuity with previous years, free and accessible content was produced for all citizens, through the holding of 24 events as follows:

• 8 Online vents related to the Basic Course (repeated on various dates for a total of 73 Webinars);
• 6 Online vents related to the Basic Course with subtitles and L interpreter (repeated on various dates for a total of 21 Webinars);
• 9 vents W B Conferences;
• 1 in-person event held on Monday 4 December at the Rome VR ost Office in iazza di an ilvestro entitled " he management of personal and family finances" for citizens invited by Rome branch staff

n addition, the Financial ducation section of the oste taliane website has been constantly updated with new multimedia content and different formats such as:

• the new " vents held" section: publication of the recordings of the 9 "Web Conferences" held in the year 2022 and the 9 "Web Conferences" held in the year 2023;

• the new " odcast" section: publication of 7 episodes (and related cards) of the "Generation F" series dedicated to young people

Finally, it should be noted that oste taliane participated for the fifth consecutive year in the "Financial ducation Month" and passed the surveillance audit on the compliance of Financial ducation initiatives with the U 11402:2020 standard (Citizens' Financial ducation)

During 2023, oste taliane's financial education initiatives involved around 12,000 citizens All initiatives are also supported by communication activities on social platforms, G oste services, press agencies, articles on the G oste portal and local press

"EduFin": Poste Italiane promotes financial education

oste taliane introduced and continues to promote a specific Financial ducation rogramme, designed to enable the most fragile and at-risk individuals to make informed economic choices and understand financial issues in a simple way his is an objective of significant social and institutional value as an enabling factor for the adoption of informed choices in a constantly evolving socio-economic context

he initiatives are implemented through the provision of free and accessible content to all citizens, through three courses delivered in webinar or in-presence mode and a section of the website dedicated to Financial ducation

As part of its sustainability strategy, the Group has set specific objectives related to Financial ducation activities in order to ensure increased inclusiveness, and publicly discloses them in its Financial Report With reference to the year 2023, 24 financial education events took place in which approximately 12,000 citizens participated hese initiatives helped to improve and refine the financial literacy of participants at the events, contributing to the achievement of oste taliane's goal

Poste Italiane participates to "Mese dell'Educazione Finanziaria"

With the aim of strengthening interventions aimed at financial inclusion, oste taliane participated with numerous initiatives in the sixth edition of the "Financial ducation Month" (#Ottobre dufin2023), the largest event in taly on financial education, established and promoted by the Committee for the planning and coordination of financial education activities (Comitato dufin) to promote the dissemination of financial, insurance and pension culture with free activities by banks, financial intermediaries, universities and cultural associations, both online and in-presence, and aimed at adults, young people and children

he theme for 2023 was " ' M FOR F A C AL DUCA O !", with three important events taking place during the month of October: the first, World nvestor Week, promoted by the nternational Organization of ecurities Commissions, which took place from 2 to 8 October; the second, ension ducation Week, scheduled from 9 to 14 October; and the third, nsurance ducation Day, which took place on 19 October n conclusion, on 31 October, World avings Day took place

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

The Digital Education project

oste taliane is committed to promoting digital inclusion through specific pathways and dedicated events, with the aim of fostering the acquisition of skills useful to take advantage of the opportunities arising from current innovations in a conscious and safe manner he Digital ducation project addresses citizens, customers and businesses by offering webinars and multimedia content always available free of charge within the web section, such as infographics, podcasts, games and videos also integrated with L -Lingua taliana dei egni translation he topics range from simple information search and evaluation, to the evolution of payment systems, to enertech, digital marketing and A

he podcasts feature experts in the Company who contribute to the technological innovation of both internal and end-user activities

Among the thematic webinars was the meeting "Minors on the et: from sharenting to digital awareness" with the collaboration of Cristina Bonucchi, tate olice psychologist, Head of the Computer Crime Analysis Unit of the ostal and Communications olice, during which the opportunities and risks of being a parent in the age of digitalisation were illustrated

Activities can be followed on Linked n, Facebook and X via #educazionedigitale and in the nstagram stories section

n 2023, the Company proceeded with the expansion of its product range in the area of financial inclusion, with a focus on offering digital services n this context, the oste ay Digital service, elected roduct of the Year 2023, is the payment solution for everyone that allows transactions both in shops and online via smartphone otally digital, the service can be obtained in a few minutes online and from the oste ay App, also via D

With particular reference to the financial inclusion of young people, the promotion "Apri il Conto Banco osta opzione tart Giovani su poste it o in App Banco osta", designed by oste taliane to encourage young people under 30 to open an account, continued he account can be opened online or by going directly to a ost Office, the fee is free for the first 18 months, and it is also possible to apply for both a ostepay debit card and a credit card without paying an additional fee he Group keeps track of the number of young people under 30 who, after being adequately informed about the advantages of opening a Banco osta account, have signed up for the promotion his allows oste taliane to measure the quantitative social impact generated on the target group through the incentives associated with opening an account n 2023, 4,847 young people under 30 signed up - over 50% more than the previous year - demonstrating the Group's ability to understand and meet the needs of young people and to actively contribute to the financial inclusion of one of the categories most at risk of exclusion

As regards ayments and Mobile services, oste ay's wide range of products and services is designed to guarantee inclusive access to all categories of users, such as new talians, young people, students and seniors n particular, the main products and services offered include:

• Western Union A service, which allows to easily send money online 24 hours a day, 7 days a week to over 200 countries and territories using a ostepay prepaid or debit card enabled for the service he recipient can also withdraw cash at a Western Union agency, and can choose in which currency, among those available, make the payment for sending money to certain countries;
• ostepay Green, a prepaid card already elected roduct of the Year in 2022, is dedicated to children aged 10 to 17, and is made with biodegradable materials, and composed of 82% polylactic acid of biological origin hrough the

ostepay App it is possible to access an innovative payment system, with the possibility of sharing expenses with other ostepay Green holders, and purchasing tickets for transport

Furthermore, oste ay is committed to enhancing awareness and use of its products through the constant dissemination of information through the available channels, with targeted interventions on the contents reported on the institutional website and FAQ

Transfer of the tax credit

As of 3 October 2023, oste taliane has reactivated the platform for the purchase of tax credits, which had been temporarily suspended in order to adapt procedures to legislative provisions he service is currently limited to the purchase of tax credits by individuals who have directly incurred the charges, with reference to first-time assignments n particular, the transfer service is reserved for holders of a Banco osta current account, which can only be accessed online using D credentials n order to verify subjective and objective requirements for the assignment of the tax credit, specific checks are carried out on the documentary set However, the customer may withdraw without penalty until acceptance by oste taliane on the Revenue Agency platform, using the online cancellation function

he service is active for applications for assignment by the original beneficiaries of the tax credit and concerns annual instalments receivable from 2024 onwards, related to credits accrued in 2023 or residual instalments of expenses from previous years As from 8 January 2024, it is also possible to apply for the assignment of annuities only as from 2025, for credits accrued in 2024 or residual instalments of expenses from previous years he maximum amount assignable is €50 thousand per customer, with a total limit of €1,501 thousand for all credits assigned to the customer, including those prior to the reopening of the service

On the occasion of " nternational ign Language Day", 4 webinars were held with subtitles and a L interpreter

Italiane, Financial Education also in sign language

Poste

his was a novelty in oste taliane's Financial ducation activities with a strong social and inclusive value he events, broadcast online on 19 and 21 eptember 2023, covered the topic "Household accounts", aimed at providing tools for managing and personalising the family budget to achieve life goals, the topic " avings and investments" where useful tips were shared on how to better manage savings and investments and optimise one's financial well-being, and finally, the topic "Retirement planning" aimed at providing useful tips for planning retirement paths and living serenely in retirement

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

2023 Annual Report

nvironmental impacts of real estate facilities

For the oste taliane Group, environmental protection is an essential element in the creation of sustainable value for the community and the territory in which it operates With this in mind, the Group is committed to using resources responsibly and implementing innovative solutions to minimise negative environmental impacts, in line with the provisions of the Code of thics

Poste Italiane aims to generate a positive impact for the community in which it operates by adopting a more conscious behaviour regarding energy, water and waste management, aimed at the green transition of its activities

Over the years, the Company reinforced its commitment to creating a more resilient financial system through climate-related disclosure by becoming an official supporter of the CFD ( ask Force on Climate Related Disclosures) in 2021 and TNFD (Task Force on Nature Related Disclosures) from January 2024. his initiative underscores oste taliane's willingness to operate in compliance with the laws and regulations in force159F ¹⁶⁰, aligning itself with the objectives set at national, uropean and international level on environmental and energy issues

tarting 2024, oste taliane is an arly Adopter of ature Related Disclosure ask Force ( FD)

n this regard, the management of the process of monitoring, measuring consumption and identifying sources of savings is entrusted to a single company function, which has the task of ensuring the compliance of the Group's activities with current regulations on energy use and oversees the areas of environmental responsibility related to oste taliane's real estate assets

During 2023, in continuity with previous years, environmental protection was considered a priority by the Company, which implemented numerous initiatives aimed at reducing its environmental impact, in line with the Group's G objectives

Among the significant actions implemented by the Group, mention is made of the management of utilities contracts with the purchase of commodities in wholesale markets starting from 2023, the progressive replacement of endothermic vehicles with electric vehicles and the installation of charging stations for electric vehicles n addition, oste taliane is constantly renewing its adoption of data collection tools and management platforms to control consumption and utility bills, considering the monitoring of environmental impact as a key element for a green conduct of its business Finally, the Group not only increased the production of renewable energy to promote energy efficiency, but also undertook planting initiatives, installed consumption data collection tools and encouraged internal team development dynamics and conscious energy use behaviours by employees

oste taliane identifies the rinciples and initiatives on environmental sustainability towards which to direct its commitment and action through the olicy on environmental sustainability, a tool adopted by the Group in 2019 useful to formally

¹⁶⁰ During the financial year 2023, the Company was not subject to any fines or penalties related to non-compliance with environmental regulations

communicate to stakeholders the green approach of its business model related to business, logistics and transport activities and property management

he document is divided into various rinciples, which outline the ways in which oste taliane acts and intervenes in the field of environmental sustainability n particular, this olicy deals with issues such as efficiency in the use of resources, innovation to support the transition towards a low-carbon economy, the reduction and prevention of the environmental footprint and the promotion of a culture attentive to the environment

As confirmation of the willingness to reduce the environmental impact of its activities, over the years, oste taliane has achieved certification of the environmental management system for the companies ostel p A and DA p A , and has held since 2020 the certification of the environmental management system for the processes of design, direction, control and coordination of ostal and Financial ervices according to the international standard U O 14001 he certification was issued by MQ-C Q, one of the most authoritative accredited certification bodies at international level

With a view to improving and making its performance efficient, the Group has developed an nvironmental Management ystem compliant with the O 14001 standard, which is fundamental for the systemic management of environmental aspects related to business processes and achieving oste taliane's sustainability objectives n addition, in order to achieve continuous improvement in performance, the Company has implemented a series of initiatives focused on issues of environmental protection and respect in order to promote actions and interventions aimed at reducing the impacts related to the performance of its activities

n particular, oste taliane identifies three areas of intervention necessary for the achievement of the objectives and rinciples set out in the olicy on environmental sustainability, envisaging for each one several specific actions, described in detail below:

• Reducing the environmental impact of its operations:

– optimisation of energy consumption and reduction of atmospheric emissions generated by buildings, thanks to renewable energy supply plans and investments in energy efficiency solutions, such as the consumption constant control systems, the use of eco-efficient lighting systems and other energy-efficient electrical/electronic devices;

– encouragement of green transport for logistical activities and individual mobility, aimed at reducing atmospheric emissions, also by providing employees with a company fleet of hybrid or fully electric vehicles;

– decrease in the consumption of materials and correct waste management, specifically through the reduction and containment of paper consumption, achieved thanks to the dematerialisation of documents and through the maximisation of the share of waste that can be recycled/reused;

– reduction of water consumption

• Incorporation of environmental aspects into the products and services offered:

– implementation of digitalisation processes for the products and services offered, aware that digital innovation can create shared value between oste taliane and its stakeholders, providing a valuable contribution to the reduction of the environmental footprint and to corporate profitability;

– analysis of environmental risks and opportunities with regard to investment choices and the management of insurance activities, in order to contribute significantly to taly's sustainable development path

• Raising the awareness of employees and third parties regarding the environmental culture:

– involvement of employees in programmes and initiatives regarding the natural environment and ecology, in particular also through the support and active participation of oste taliane's corporate volunteer network;

– support for training and information projects on environmental issues, as well as initiatives aimed at protecting and restoring the environmental heritage;

– dialogue and collaboration with bodies and associations operating at national and international level, in order to design and adopt models, policies and strategies that can mitigate climate change and hinder the inefficient consumption of resources;

– analysis of risks and environmental management methodologies adopted by counterparties (suppliers, business partners, other companies) in supply processes and possible extraordinary finance operations

oste taliane's focus on environmental sustainability is evidenced by numerous initiatives implemented in this area, such as projects aimed at increasing the production of energy from renewable sources through the development of photovoltaic solutions and those aimed at contributing to the absorption of CO² and other climate-changing emissions through the planting of green areas on Group land and buildings

rocedures for identifying and assessing risks inside and outside the Group, dialogue activities with stakeholders and systems for reporting violations and sanctions make it possible to periodically monitor the effectiveness of the approach adopted by the Company

n accordance with reference regulations, ostel p A and DA, the two companies primarily involved in the certification process, have also defined specific environmental policies:

Occupational Health and Safety, Environment and Quality Policy of Postel S.p.A.: through this olicy, ostel p A aims to ensure and monitor appropriate business conduct in compliance with regulatory and legislative requirements on environmental issues, aligning the Company to the required standards in the field of occupational health and safety n addition, the olicy defines its objectives with regard to environmental protection and prevention of negative impacts, with particular regard to efficient waste management, and its commitment to the responsible use of resources and the protection of biodiversity, relevant to its context

Quality, Environment and Occupational Health and Safety Policy of SDA S.p.A.: the olicy establishes and presents the principles relating to the proper management of quality, environment and occupational health and safety issues n particular, DA p A recognises the importance of environmental sustainability, committed to the protection of the environment and making specific reference to the prevention of pollution and excessive consumption of natural resources that may result from the activities carried out within the Company With this in mind, the Company promotes the recycling and, where possible, the reuse of the waste produced, and is committed to the constant pursuit of a supply chain based on sustainability

Poste Italiane's green strategy A 2060 certification obtained for the adua orting Centre

During 2023, oste taliane completed work on the adua orting Centre, aimed at transforming the site into a carbon-neutral location

pecifically, through strategic planning and the definition of intervention guidelines, the adua orting Centre is able to achieve a balance between daily carbon dioxide emissions and those absorbed or not produced by it, in carrying out its various activities o this end, through the installation of 90 probes with pipes that go into the ground for at least 130 metres, the adua site is able to obtain energy from geological sources in the subsoil, capturing the natural heat of the ground he aim is to replicate the model in all oste taliane's areas with suitable characteristics to that of the Veneto city

he initiative, which is part of the Group's broader goal of achieving Carbon eutrality in 2030, led to the achievement of A 2060 in 2023, certifying the site's neutrality of CO² emissions in accordance with the most stringent environmental requirements

he Group is aware that energy efficiency is crucial to succeed in combining economic growth and sustainable development For this reason, in adopting an exemplary environmental behaviour, oste taliane bases its strategy on the following areas of intervention:

Renewable sources. oste taliane achieves the goal of making the impact of its business activities even more sustainable through the installation of photovoltaic panels in the buildings it owns, located throughout the country n 2023, the implementation of the photovoltaic project continued with the installation of 39 systems for about 3,500 kWp Administrative activities related to the connection of installed sites to the national grid also continued, significantly improving connection times - which were reduced to an average duration of about 3 months - through daily dialogue with local distributors and suppliers he total number of completed plants,

99%

of the purchased Group's electricity comes from 100% renewable sources, certified by Guarantees of Origin

including installations from previous years, is 202, of which 35 installed up to 2021, 128 installed in 2022 and 39 installed during 2023, with a total capacity of about 13,953 kWp Also including the plants built under the olis roject, the total number is 308, of which 145 in 2023, with a total capacity of approximately 15,753 kWp he self-consumed photovoltaic production in 2023 is thus increased by 2,772 MWh, corresponding to avoided climate-altering emissions of about 813 tCO2e

With this in mind, the oste taliane Group is pursuing a very broad sustainability path, aimed at the construction of 1,400

-10%

cope 1 and cope 2 emission reductions achieved through building energy efficiency initiatives

one million kilowatts

photovoltaic systems by 2026, which will cover 15% of the Company's energy needs Of these, about 300 medium/large sized plants will be built by 2024 and will cover all regions, representing one of the most significant interventions on the talian scene in recent years and certainly the most widespread initiative ever carried out in the country Among the best practices with regard to this type of plant, in 2023, the Group inaugurated the largest photovoltaic plant in icily, the "Centro Meccanizzazione ostale" in alermo, with a system that made the production cycle of the site totally self-sufficient thanks to a production of over

Smart buildings. Confirming the Group's commitment to safeguarding the environment, in continuity with previous years, the mart Building project was promoted for the creation of a management system for oste taliane's mediumsmall sites by monitoring consumption, climatic conditions inside and outside the buildings, and the automatic implementation of regulation and management systems for air conditioning, heating and lighting systems Financed by the uropean nvestment Bank, the project plans to implement a Building and

~ 6,700

tonnes of saved carbon dioxide thanks to the energy efficiency initiatives implemented

nergy Management ystem (B M ) on 2,000 oste taliane buildings through a single platform for the integrated supervision, management and control of plants, optimising maintenance management and energy efficiency pecifically, the intervention includes the installation of sensors and systems for controlling and monitoring systems in buildings, as well as the connection with a centralised platform that allows the progressive optimisation of the management of systems and environments oste taliane fully represents the extreme diversity of climatic conditions that characterise the talian territory, as it has in its assets thousands of buildings scattered in every climatic zone and at every latitude and altitude of the territory in which it operates his diversity requires flexible technical solutions that are not only able to adapt to a variety of conditions and ensure optimal comfort of the environments for both staff and customers, but also to use as little energy as possible and maximise the efficiency of the systems in order to reduce breakdowns and prolong their service life n 2023, the number of new installations amounted to about 379, including the 24 installations carried out within the olis roject, plus those related to the so-called "improved offer" of the "Multiservice" contracts, bringing the total number of sites on the B M platform to about 2,000

Energy optimisation. On the subject of energy efficiency, oste taliane has launched a decarbonisation project aimed at replacing gas boilers with heat pumps on about 100 sites, saving about 3,566 tCO2e

n addition, during the year, the Company implemented various measures aimed at reducing the consumption of resources and focused, specifically, on optimising the heating and cooling systems of some of the Group's sites n this

regard, multiple levers were used, including the renewal of systems that have reached the end of their life cycle with more efficient equipment, the renovation of buildings to improve thermal efficiency, the review of heating and cooling methods through the use of carriers such as diesel and natural gas and the use of heat pumps powered by electricity hese interventions were carried out according to the technical parameters, updated annually by the nergy ervices Manager (G ), which indicate the types of solutions suitable to benefit from incentives for the greater efficiency of the installed equipment

Furthermore, the Company has maintained the energy efficiency project aimed at optimising the air conditioning and heating systems in some of the Group's structural sites, for a total budget of €8 5 million invested in 2023

LED lighting. n 2023, oste taliane's commitment to the use of smart technologies continued n fact, over the years, the Group has installed L D technology lighting systems, which reduce energy consumption by 50% n this regard, 21,018 lamps were installed during 2023 reaching 433,337 at the end of the year since the start of the project

Encouraging virtuous behaviour. he oste taliane Group is constantly striving to improve the efficiency and sustainability of its operational processes and, also in 2023, it launched and maintained several projects aimed at the "virtuous" reuse of assets and equipment/tools deemed obsolete but which can still have a "second life", confirming the importance for the Company of the issue of reducing the amount of waste produced hese initiatives, such as "Valori Ritrovati" promoted in cooperation with Caritas since 2019, consist in removing certain goods and equipment from the waste management cycle by handing them over to third parties for reuse oste taliane also adheres to numerous initiatives aimed at raising awareness of the rational use of energy, such as " arth Hour", a day on which the Company switches off or dims the lights in its offices, and "M'illumino di meno", promoted by the WWF in order to increase awareness of the value of nature and contribute to safeguarding the planet Finally, the Company launched the "Green Challenge" initiative in 2022, a path aimed at encouraging oste taliane's customers to adopt appropriate behaviour in the area of sustainability

100 Group sites subject to the replacement of gas boilers

with heat pumps

€23.9 million

invested in projects to reduce emissions

Poste Italiane participates to "Earth Day"

Like in previous years, the Group participated in the customary celebration of arth Day, the world's most important event for environmental protection, established by the U in 1970 n 2023, the 53rd edition of the event focused on supporting events aimed at raising awareness of good practices with a view to environmental sustainability, with a spirit of collaboration between citizens and governments from all over the world At the end of the day, a memorandum with 52 tips for reducing environmental impact was published

" nvesting" in the lanet

n addition, oste taliane took part, for the fifth consecutive year, in Green ostal Day, an event promoted by the nternational ost Corporation in cooperation with ost urop his initiative aims to highlight the environmental and commercial successes achieved by the postal industry through collaboration within the sector to reduce CO2 emissions By participating in this event, the Company reinforces the validity of its corporate strategy, which aims to integrate sustainability into all areas of the Group's business, with the goal of becoming carbon neutral by 2030

n addition, the Group promotes the consumption of certified and recyclable products with respect to internal and external printing and consumables, demonstrating a constant and growing concern for the environment he supplies of consumables, such as original and regenerated consumables, reams of paper, packaging, the supply of labels, forms and cartons, in fact, implement, where applicable, the Minimum nvironmental Criteria (CAM) established by the art 34 of Legislative Decree no 50/2016 and art 57 of Legislative Decree no 36/2023, as well as the use of specific product certificates/ecological quality labels compliant with O 14024

oste taliane's attention to environmental sustainability policies is also demonstrated by the use of F C (Forest tewardship Council) certified paper for the Group's mass printing plants, which guarantees the procurement of this material through a value chain that promotes environmentally friendly, socially useful and economically sustainable forest management Furthermore, in line with the commitment to use recyclable materials, part of the traditional credit

Postepay Green

made of sustainable material, 82% polylactic acid of organic origin

card requirement was replaced by cards of vegetable origin pecifically, the Company maintained its plan to replace traditional payment cards with cards made of sustainable materials, renewable biomass and recycled plastic from the oceans, such as the new ostepay Green, which is made of environmentally sustainable material and 82% of which is composed of polylactic acid of organic origin

oste taliane has always paid particular attention to the social and environmental aspects linked to the management of its supply chain, aware that developing transparent and lasting relationships with suppliers and paying the utmost attention to quality, respect for the environment, safety and the implications of a social nature in the procurement process allows both to pursue an objective of public interest for the entire country system and to constantly improve the service offered to its customers he integration of sustainability issues in tender procedures and G criteria in the technical evaluation of offers allows the Group to pursue its goal of promoting sustainable change through projects with a significant impact, such as logistics, decarbonisation of buildings and consumables, while at the same time fostering a focus on the responsible use of resources, investment plans, technological development and the greening of more traditional requirements

From this perspective, the ustainable rocurement Model adopted by the Group for the planning and preparation phase of the tenders provides for differentiated control which, in addition to promoting sustainable innovation of materials and processes also with a view to the Circular conomy, verifies and proposes a possible alignment with the general framework of Green ublic rocurement (G - Green ublic Administration rocurement), recommending the use of Key G applicable to the individual procedure, taking into account the maturity of the reference market, the role in the supply chain and the corporate sizing of the supplier More specifically, Key G are non-financial criteria that make it possible to measure sustainability in environmental, social and governance terms, assessing a company's G performance and, therefore, the degree to which its business activities conform to principles that express - among others - respect for the environment, non-discrimination and inclusion in the work and social context, and the efficiency and adequacy of the organisational set-up adopted, also in terms of anti-corruption

Within the framework of the 2020-2023 ustainable rocurement lan, the oste taliane Group has largely achieved its objectives, including the introduction of governance assessment requirements to complement the G model, the contextual coverage in 90% of tenders launched with O V of at least two of the G aspects, the increase of G weight in the technical offer, compliance with O 20400 certifying the integration of social responsibility in procurement activities, and the dissemination of the concepts of sustainable practices through internal newsletters and portals oste taliane, in fact, aims to promote the adoption of G criteria in the selection, evaluation and monitoring of suppliers, mitigating any G risks in order to increase the effectiveness of company processes and the competitiveness of the supply chain

Consistent with previous years, the Company has integrated the criteria envisaged by the G with the aim of combining sustainability in terms of reducing environmental impacts and rationalising costs, applying, where applicable, the indications on CAM, established through specific Ministerial Decrees n fact, tender procedures with technical offer (O V) include, in almost all cases, G criteria

he oste taliane Group promotes the supply of food with B O, G , DO , sustainable fishing etc certifications, with quantities exceeding the minimums prescribed by the CAM Consequently, local suppliers involved in the supply chain of food products intended for canteens and bars are also required to guarantee certified products

n addition, since 2019, the Group has embarked on a deplasticisation of company canteens aimed at significantly reducing its environmental footprint he supplier register is developed through a qualification system for regional and territorial areas, encouraging local labour and a zero-kilometre supply of materials he use of this approach in the process of awarding works contracts, and in particular for those concerning construction-system interventions, allows oste taliane to maintain low procurement costs and simultaneously reduce its environmental impact

Poste Italiane's entry in the market of selling energy to Italian households

oste taliane's entry into the electricity and gas sector was accompanied by the " nergia160" promotion, introduced in honour of the 160th anniversary of the Group, and offers a discount on electricity and gas supplies for its employees and pensioners he " oste nergia" promotion, aimed at the free market and available at all ost Offices, on poste it and on the ostepay and Banco osta apps, is based on the following pillars: transparency, predictability and sustainability

As far as the operation of the offer is concerned, which is transparent and completely green, the price of the raw material for electricity and gas is locked in for a period of one or more years (2 years for the offer proposed until August 2023, 1 year for the offer proposed thereafter), and there are two payment options: the traditional one, with a variable amount based on monthly consumption, and the fixed instalment option, calculated on the basis of the previous year's consumption his innovative solution allows the customer to pay the same monthly amount for 12 months, allowing energy expenses to be planned on the household budget, and at the end of the year, it is recalculated for the following year, up or down, based on the actual consumption recorded

" oste nergia" is a transparent, predictable, innovative and sustainable service that, in line with the Group's philosophy, strengthens the relationship of trust between citizens and the Company his service contributes to the strategic objectives of a multi-platform company with a diversified business consisting of postal and logistics, financial, insurance, payment, telephony and energy services

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

n addition, the " oste nergia" offer stands out for its focus on environmental sustainability, promoting conscious consumption practices and offering electricity from 100% renewable sources produced in taly, with carbon dioxide emissions from gas released for consumption fully offset Finally, the promotion is easy to subscribe to and minimises paper consumption, as only a recent utility bill needs to be presented

100% green lectricity and gas offers

he supply of electricity and gas expands the multi-channel range of services offered by the Group, such as postal, financial, insurance, digital payments, telephone and nternet connection services via fibre he Group uses an approach based on reliability and transparency, maximising the predictability of customer spending through "pull" commercial channels, i e activated by customers according to their will, as opposed to "push" channels, which push customers towards choices that are not always conscious or correct

With this new service, oste taliane aims to play a key role in the country's energy transition, simultaneously developing an advanced digital customer experience and relying on the widespread network of ost Offices, close to the territories and people

Waste Management

he progressive reduction of waste produced in all activities, the use of products with less impact on the consumption of raw materials and the growing attention to the life cycle of the materials used and the reduction of packaging are part of the environmental sustainability strategies of oste taliane Although most of the waste generated by the Group's activities is non-hazardous waste, such as waste paper, cardboard and plastic packaging and wooden pallets, at some sites, to a residual extent, the production of special waste classifiable as special hazardous waste, such as containers of printing inks or ink waste, may occur With this in mind, the Group is constantly striving to progressively eliminate from its purchasing cycle products and materials that, at the end of their life cycle, generate special hazardous waste, giving preference to similar but more environmentally friendly products, including through the adoption of CAM pecial waste is sent for recovery/disposal under liability cycle contracts that the company enters into with authorised companies, in compliance with the requirements concerning the handling and traceability of waste as set out in Legislative Decree no 152/2006 and the like (e g forms, loading/unloading register, MUD) he share of recyclable waste, on the other hand, is sent for recycling/recovery through active transfer contracts, and currently mainly concerns the recycling/recovery of paper and cardboard, plastic, wood and marginally ferrous materials

Waste management is a critical issue for the Group, and consists of planning, monitoring and control processes he following are also mentioned among the sensitive activities referred to in the organisational model pursuant to Legislative Decree no 231/01, including those relating to the management of waste that should arise as a result of the adoption of special protective or organisational measures to oversee extraordinary situations arising from exogenous factors (e g health emergencies), with reference to the definition of appropriate behavioural and organisational rules and related control measures

oste taliane ensures the continuous assessment of impacts and the implementation of countermeasures through the precise definition and attribution of roles and responsibilities within its organisational structures he responsibilities of the various company organisational units relating to the activities that influence waste management and, in general, to environmental issues, are documented in detail in the organisational structures and specified in the activity declarations contained therein Verifying the conformity of processes related to proper waste management is a practice that is constantly carried out by checking the technical and professional suitability requirements of the collection and recovery and disposal service providers his verification extends to the control of service levels and the supervision of operational processes within the sites he plant-structural audit activity at the sites also includes verification of the conformity of the waste management processes produced, with particular attention to the correct management of collection points, temporary

storage, separation by type and the processing and keeping of the required documentation (Forms, MUD, etc ) Furthermore, the Group has promoted initiatives to raise awareness on the topic of waste management, especially in sites where correct separation and disposal constitute an added value in terms of the possibility of recovery/recycling

Control over the proper performance and management of the waste collection and recovery/disposal service is carried out by verifying:

• the correct supply of various types of containers for the temporary storage of waste;
• the labelling of waste/containers;
• the execution of the planned waste movements;
• that the waste management documentation has been completed correctly;
• compliance with the limits for temporary storage;
• transport by suitable and authorised means;
• valid registrations and authorisations for transporters and disposers/recoverers

Finally, within the framework of the adopted nvironmental Management ystems, risk and opportunity assessments are carried out in order to plan actions for continuous improvement in waste management he criteria used are defined according to the peculiarities of the activity performed o this end, the following are therefore determined:

• risk and opportunity scenarios for environmental impacts and relevant internal and external factors, and consistent with compliance obligations;
• the business processes/functions concerned;
• the assessment of likelihood, impact and level of control;
• the classification of risks;
• risk mitigation and control measures;
• the level of inherent and residual risk;
• new interventions and actions to be implemented

he monitoring of waste production data is conducted both in the context of the specific procedures/methods referred to in the nvironmental Management ystem and in the context of periodic reporting, such as the preparation of annual activity reports As for the actions implemented to mitigate risks and, where possible, seize opportunities, these are proportional to the impact of waste generation depending on the site and type

As part of its environmental sustainability initiatives, in 2023, the oste taliane Group maintained its nvironmental Management ystem, adopted and certified according to O 14001, extending it to all sites in taly with an applied number of employees greater than 300 he main Group companies have also adopted an nvironmental Management ystem, certified according to O 14001, which includes procedures and operating instructions to establish guidelines and operational processes for the management of identified environmental aspects/impacts he objectives identified and their achievement are verified and defined in the management systems review, as well as in periodic monitoring and control activities

Water resource management

As regards the water supply in the sites owned by oste taliane, this occurs through withdrawal from the national water network, mainly intended for use for sanitary purposes, with the consequent discharge into the municipal sewer system he Group's objective is to minimise the overall use of water resources, by monitoring consumption, and to minimise the volume of water to be disposed of as industrial waste, by monitoring production

As regards the activities of ostel p A , water is supplied through local aqueducts or from wells for which it has a concession, mainly for uses similar to domestic ones or for air conditioning systems Only at the Melzo and omezia sites

is the water used for industrial purposes, with waste from industrial activities directed to disposal plants Water that can be assimilated to domestic water or water from precipitation, on the other hand, is disposed of in accordance with local regulations and the relevant concessions

With reference to the activities of DA p A , the water supply of the sites comes mainly from municipal aqueducts and only in three of these is water derived from wells used Water use is mainly for sanitary purposes, bathrooms and cleaning n addition, the water supply for the Rome Hub, Milan and Bologna sites is provided by a rainwater harvesting system, which is used to irrigate the adjacent green areas

As concerns water consumption monitoring, oste taliane adopts an integrated quality/environmental/safety management system certified according to O 14001:2015 At the DA p A offices, a meter reading register is compiled on a monthly basis, in which the water consumption readings are noted hese data are centralised to calculate the overall annual consumption and the average daily consumption On the basis of consumption, through a specific indicator called "WC " (Water Consumption ndicator), it is possible to relate consumption to productivity, i e "litres/shipping" ubsequently, a ranking is drawn up highlighting the locations with high consumption, in order to identify any anomalous situations he objective of the DA p A offices is to maintain a level compliant with the average value of the WC indicator, with the aim of reducing the WC by 5% he volumes of water resources used and discharged, in accordance with the provisions of the various concessions, are reported to the local authorities, who proceed with the prescribed analyses uppliers contracted to use water resources under Group agreements manage this resource in accordance with the contractual clauses and local concessions in force at the sites where they operate

nvironmental impacts of logistics

MAIN RELATED TYPES OF CAPITAL

Aware of its widespread presence throughout taly and aware of the potential contribution that can be made to mitigating environmental impacts, the oste taliane Group attaches primary importance to these issues in the course of its activities and in defining its ustainability trategy

With the aim of generating a positive environmental impact in the context of logistics operations, the Group aims to support the green transition of its fleet

n line with previous years, in 2023 oste taliane continued to implement sustainability initiatives, with particular attention to reducing the environmental impact deriving from the corporate fleet n this regard, a fleet of 14,189 alternative fuel vehicles is already operational, including electric, methane and L G

he Fleet Renewal lan, initially launched in 2019 with the aim of replacing the entire fleet of vehicles intended for the delivery of postal products with green vehicles, continued in 2023 through a series of measures aimed at reducing energy consumption, atmospheric emissions, improving safety and increasing carrying capacity for delivery n parallel with the increase in safety levels through the replacement of two-wheeled vehicles with three- and four-wheeled vehicles, electrically powered vehicles have been strengthened in order to promote "ecological mobility" o improve the organisation of delivery loads, oste taliane has introduced larger and more functional vehicles for parcel transport and delivery needs, implementing new equipment

mproving the environmental performance of the Group's fleet has a significant impact on reducing greenhouse gas emissions By virtue of this, oste taliane has confirmed its commitment to pursuing the complete renewal of the vehicle Poste Italiane Group Report on Operations at 31 December 2023 fleet, increasing the green component of the fleet itself, through the introduction of electric and hybrid cars and motorcycles

in line with the G objectives of reducing emissions by 40% he results of this policy are evident, as the Company went from 11% of green vehicles in 2016 to 44 4% in 2023, increasing the number of these vehicles by 24% compared to 2022, in line with the goal of replacing the entire company fleet with low-emission vehicles by 2024

n accordance with the Group's objectives aimed at promoting the use of renewable sources and rationalising energy consumption deriving from fossil sources, since 2018, the Company has been promoting and supporting the new green evolution plan of the company fleet and the delivery plan "Joint Delivery", two fundamental pillars in the company strategies for achieving predefined objectives regarding environmental sustainability By implementing the "Joint Delivery" plan, oste

taliane is adopting a model that allows a radical reorganisation of the delivery network and its operating model his implies a transition from a single-network set-up to a two-network set-up, differentiating by mode, delivery frequency and type of product handled his strategic approach is designed to optimise the efficiency of delivery operations he Fleet volution lan and the Joint Delivery lan reduce both the number of kilometres travelled for delivery activities and the need for a marshalling fleet itself

CL owned fleet emissions compared to 2019

The Green Delivery hrough the "Green Delivery" delivery model, the oste taliane Group has made a proximity network available to the territory which, on the one hand, guarantees greater flexibility for customers and on the other, generates environmental benefits

Benefits:

about 2 million km avoided • avoided

244 tonnes CO2eq and 866 kg of air contaminants • each parcel delivered avoided the emission of 15 5 grams of CO2eq and air contaminants

Model

• about 11 million passages saved and shops, Carrefour and A service stations) and the ost Office network for the delivery of parcels, as an alternative to home delivery

his delivery model also allows for greater efficiency in oste taliane's logistics as more parcels can be delivered to a single collection point, thus limiting the number of pick-ups and fleet movements

oste taliane customers, in fact, can make use of both the unto oste network (consisting of more than 15,700 pick-up points such as tobacconists, bars, stationers, newsagents, Kipoint

emissions of n the course of 2023, through the unto oste network and ost Offices, around 11 million parcel deliveries could be avoided, resulting in savings around 2 million kilometres by the talian ost Office fleet

he increase in the number of journeys avoided and the resulting kilometres saved compared to the previous year is the result of the significant growth in volumes handled through the unto oste network and ost Offices, and thus the efficiency of the "Green Delivery" model n fact, through the capillarity of its postal networks, the Group currently manages to cover 95% of the population within a 5-minute radius

n addition, there was also a considerable increase in the number of electric vehicles in the Group's fleet in 2023, enabling the "Green Delivery" model to achieve positive performance in terms of avoided emissions and air pollutants

n fact, the journeys saved and kilometres avoided thanks to the Green Delivery model avoided the emission of 244 tonnes of CO2e and 866 kg of air pollutants into the atmosphere (i e COV M, H3, O2, Ox, M, M2 5)

n particular, each parcel delivered through the Green Delivery model resulted in a saving in CO2e emissions and air contaminants of approximately 15 5 grams

As regards the details of the green fleet transformation project, during the year, oste taliane completed the fleet of

approximately 2,200 electric vehicles, approximately 800 hybrid electric or methane vehicles and approximately 700 low-emission vehicles

44.4%

of the fleet consisting of green vehicles

he green fleet reached 44 4% of the total oste taliane fleet in 2023: there are over 8,000 bi-fuel vehicles including cars and vans and over 5,800 electric vehicles he total number of vehicles with reduced environmental impact introduced starting from 2019 is equal to 26,225 vehicles, and by 2024, oste taliane expects to reach 27,800 vehicles by 2024

Poste Air Cargo C V harma certification obtained

oste Air Cargo, oste taliane's air fleet, has received C V harma certification, attesting excellence in the transport of pharmaceutical products with the highest safety standards he certification enables compliance with the requirements of companies in the pharmaceutical sector, ensuring temperature-controlled transport in accordance with international standards

he modern fleet of five Boeing 737, supports various sectors, including pharmaceuticals, agribusiness, automotive and e-commerce he night network connects eight talian airports and extends across urope, the Mediterranean Basin and the Middle ast, offering flexible solutions Operating bases in Milan Malpensa and Rome Fiumicino facilitate national and international coverage

oste Air Cargo stands for high safety and quality standards, a member of A A and O A certified A A art 145 compliance for line maintenance and A O for B737 training contribute to the company's professional reputation

tarting from January 2019, the Group has implemented the "Fleet Management" function, conceived with the aim of outlining, managing and organising company strategies in the vehicle sector his function assumes the responsibility of defining and guaranteeing the governance, guidelines and tools adequate to ensure the best services relating to the entire vehicle fleet of oste taliane and the Group companies

n addition to its established initiatives on sustainable mobility, oste taliane takes measures to positively influence people's current and future behaviour he aim is to integrate these behaviours into a new normality that favours environmental protection

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

	• Work from home for staff personnel;
Sustainable	• subsidised purchase of annual season tickets for Group employees and their families;
mobility	• TPL in 9 metropolitan cities, as well as in the Lombardy Region for regional rail transport
oste taliane's main initiatives	and in the uscany Region and its provinces for extra-urban, urban and rail transport,
	for the subsidised purchase of annual season tickets for Group employees and their
	families;
	• 24-Hour Shuttle service connecting the 11 cities where the service operates with the
	CM premises;
	• Company Car Pooling service in Rome and Milan and Car/Scooter sharing
	campaigns;
	• new Eco-Drive theoretical/practical course campaign aimed at fleet and non-fleet
	personnel;
	• video briefs on the permanent co Drive on the intranet;
	• #MyVirtualDrive campaign, the ecodrive simulation system in Direct3D technology;
	• eco-Drive in brief brochure, available on the intranet, aims to illustrate what can be
	done in terms of urban mobility to reduce pollutant emissions and to convey a series of
	recommendations to encourage environmentally friendly, economical and safe driving,
	helping to raise the driver's awareness of fuel economy and thus the reduction of CO2 in
	the air;
	• Changing Room, the changing rooms for cycling and running employees;
	• #MyPostoBiciVerona campaign dedicated to the employees of the Verona CM
	Headquarters who are systematic users of bicycles for home-work commuting with the
	allocation of a free bicycle parking space for one year;
	• #PostePedala campaign on the MO portal to increase the use of bicycles in
	systematic travel and Changing Room, the changing rooms for cycling and running
	employees;

• #MyFiabCard and #MyFiabFamilyCard campaign to help spread the culture of sustainable mobility and encourage company employees and their families to rethink the range of available transport options and related benefits, with the awarding of F AB cards for one year that include the use of a range of services, including H24/7 third-party liability insurance for bicycles in taly and urope;
• awareness-raising campaigns related to sustainable mobility issues to promote rethinking the way we move around the city;
• #VideoTest, multimedia video with self-assessment test, "Your low emission day How to make your daily mobility more sustainable and safer";
• publication of the e-Book " mart City: a window to the future";
• News Magazine bi-monthly dedicated to sustainable mobility and Time & Money Saving section within the MO portal

Home-Work Travel Plan 2023

ustainable mobility

oste taliane believes that the management of systematic movements of its employees is a fundamental element capable of generating positive impacts, both direct and indirect, on the relationship with key stakeholders that can be enhanced

he environmental impact deriving from home-work trips represents one of the main indicators of the effectiveness of the Home-Work Commute lan ( CL) Annual monitoring not only allows reporting on the current situation, but also allows estimating the emission trend caused by systematic corporate mobility

he CL is aimed at reducing private vehicle traffic and identifying measures to guide the home-work journeys of employees towards sustainable forms of mobility alternative to the individual use of private motor vehicles his direction is based on the analysis of employees' home-work journeys, their mobility needs and the state of the transport offer in the area concerned he CL also defines the benefits that can be achieved through the implementation of the measures it envisages, assessing the advantages both for the employees involved, in terms of travel time, transport costs and comfort, and for the company adopting it, in economic and productivity terms, as well as for the community, in environmental, social and economic terms

he car fleet in circulation is surveyed through the aggregated results of the survey conducted in 2023, where specific information was requested regarding the private vehicle used for home-to-work travel Detailed data on the composition of the workers' car fleet was also obtained he single cluster of analysis, which makes it possible to associate the number of private vehicles used by employees with the corresponding emission factor, consists of the intersection of three pieces of information from the survey: Cylinder Capacity, uro Class and ower upply

he objectives relating to the reduction of CO² emissions form the core of the joint venture agreement signed between oste taliane and sennder, the uropean leader in the digitalisation of freight transport hrough the collaboration with sennder, the Group aims to enhance the efficiency of road transport over long distances, extending its coverage to all segments of full load transport and the movement of packages and letters between the sorting and distribution hubs of the entire Group

Poste Italiane in Green Postal Day 2023

ogether to combat climate change

oste taliane took part in the fifth edition of "Green ostal Day", this year coinciding with the international Zero missions Day he initiative was organised in cooperation with ost urop to highlight the contribution of postal operators to the reduction of CO² emissions and the global fight against climate change oste taliane is in fact committed, together with the major players in the logistics sector, to the development of a more sustainable economy and society, through deliveries with ever lower carbon dioxide emissions he year 2023 marked the Group's commitment to convert 50% of the company fleet currently in use to vehicles using fuels from sustainable sources by 2030 his initiative contributes to the achievement of the objectives of the 2024-2028 trategic lan

he initiative promoted by the postal sector emphasises the importance of collaboration with a view to exchanging best practices and stimulating individual companies to go beyond their initial targets he use of a common measurement system has also fostered transparency and guided sustainability choices

With regard to the supplier selection process, oste taliane implements specific criteria to monitor the indirect environmental impact pecifically, the Company carries out a verification of the technical-professional suitability of its suppliers by requesting, for qualification, the satisfaction of specific requirements, including the composition and type of vehicles in their fleet n particular, for vehicles used in services, the Group requires compliance with uropean standards on polluting emissions with a class no lower than URO6 and that XL boxed or curtainsider semi-trailers equipped with R cable are equipped with a G system for transmission of all detections on the position of the vehicles

n the context of purchasing logistics services, oste taliane maintains an approach in line with sustainability issues, selecting and rewarding suppliers who adopt practices aligned with the environmental, social and governance aspects promoted by the Group For transport services, a score is assigned that enhances eco-sustainability for suppliers who use vehicles with lower CO² emission classes

Compliance with the reference M C is also required for footwear and ersonal rotective quipment ( ) n addition, incentives are given, through the technical score awarded, to bidders who propose solutions aimed at the recyclability of packaging n parallel with the services mentioned, when purchasing technological systems for sorting parcels and letters, offers characterised by low energy absorption during use are preferred

Offsetting of aircraft fleet emissions quotas

oste Air Cargo, the talian leader in full-freighter air transport, connects 8 talian airports with a night-time network to serve the cargo courier segment logistics support of oste taliane As far as the airline fleet is concerned, the rules of the U mission rading ystem (U ) stipulate that annually, by April 30th, companies covered by the greenhouse gas emission reduction scheme - including airlines - must surrender a sufficient number of allowances to cover their emissions for the previous calendar year

he price dynamics for 2023, influenced by the current socio-economic context, are characterised by stable quotations, with an average CO2e price of about €84, slightly higher than in 2022, which was about €81 oste Air Cargo, in line with the Group's green strategy, has launched a specific feasibility study aimed at identifying the possible and most suitable actions to be taken to contain greenhouse gas emissions directly attributable to air transport

Poste Italiane Group Report on Operations at 31 December 2023

2023 Annual Report

Quality and Customer experience

PRINCIPALI CAPITALI COLLE MAIN RELATED TYPES OF CAPITAL GATI

Customer satisfaction constitutes a central objective in the quality policies of the oste taliane Group, which is committed to pursuing it by actively promoting moments of listening, which are fundamental to ensuring constant improvement in the quality of the products and services provided n a context characterised by rapid development and evolution, with the everincreasing spread of mobile devices, social networks, e-commerce, multi-channel services and artificial intelligence, offering a unique and distinctive experience becomes particularly important he correct approach within these channels allows to establish a solid relationship of trust and detect any changes in customer habits and behaviours

Fundamental values such as courtesy, transparency, fairness and impartiality, which guide the Group's approach to its customers, are described in the Code of thics, ensuring that customer relations are managed on the basis of correct, healthy and profitable principles

Poste Italiane places customer satisfaction at the centre of its priorities, offering a high level of experience and basing its service on understanding and active listening, capable of intercepting with quality and professionalism the different needs of customers

n this context, the Company is committed to a monitoring process aimed at both the continuous improvement of the quality actually delivered of the services offered, and that perceived by the end user hanks to a system of K s and a regular reporting system covering the entire range of products and services offered, the Company ensures that management is constantly updated on the progress of the relevant trends, and is therefore able to offer a high level of quality delivered he organisation has put in place a process of continuous improvement of the customer experience, starting with listening (internal and external) and A -based process analysis n continuity with previous years, oste taliane has pursued the development path of connected experiences with greater intensity, allowing the start of integration between customer assessments, operational performance and competitor results

n the area of Mail, Communication and Logistics ( CL), a customer satisfaction survey was also conducted in 2023 to assess citizens' satisfaction with the parcel and postal delivery service n addition, transactional surveys have been in place since March 2023 to assess recipients' satisfaction with the mail and parcel delivery service, the results of which are monitored using a " erceived Quality Dashboard"

n the field of electricity and gas supplies and mobile and landline services, the customer experience is strongly influenced by regulatory aspects, particularly in the field of energy his implies that the management of the issue includes close monitoring of regulatory developments and, where possible, dialogue with the Authorities in order to ensure compliance and at the same time, maintain an optimal customer experience that is harmonious with the rest of oste taliane's products and services For this reason, following the market launch of the oste nergia offer in February 2023, market research, surveys, et romoter core ( ) and C analyses, usability tests and other research activities with users were conducted during the year to gather feedback aimed at constantly improving the products and services offered

As far as ost Offices are concerned, the ost Office etwork structure has maintained active a process of continuous monitoring of waiting times through the tool of the waiting manager, which also allows timely intervention through an alert system n addition, the ost, Communications and Logistics ( CL) structure monitors and measures on-time delivery levels for mail and parcels, and first delivery success for parcels, using digital tools that contribute significantly to increasing quality and service delivery

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

With reference to the value the Company places on the quality perceived by customers, a customer experience target has been set for 2023 for recipients of the MBO (Management by Objectives) programme Consequently, a dynamic model was developed that is able to set targets by considering the changing context through the analysis of internal and external signals his model is also able to incorporate management's possible drive for ambitious growth in strategic areas through top-down improvement hanks to the development of the target setting methodology, oste taliane is able to identify, within each macro area of the Group, the relevant components for measuring the Customer xperience, in order to cover all significant interactions with customers he target components for the different business segments and channels were updated to facilitate a better comparison with external, internal and competitor signals hese also include the business areas measured in the previous year Moreover, considering the increasingly integrated and central role of oste taliane's artners in the definition and development of the various service components, a structured project was launched to listen to artners and customers of third-party networks, in line with the Group's perceived quality model

PCL measures customer satisfaction with an innovative dashboard

During 2023, the CL (Mail, Communication and Logistics) function was equipped with a erceived Quality Dashboard, a tool that monitors the perception of the quality of delivery and postal products (registered mail and parcels), detected through a system of surveys sent to the receiving customers after the delivery service

he dashboard measures the quality delivered by the network and its performance, makes it possible to target action plans and interventions on off-target quality K s (indicators) and to report annual company results he system collects data and information from logistics nodes throughout the territory to provide a 360-degree view of the results achieved, by means of various channels and tracking systems, such as the DA of post officers, the orting Centres tracking systems, the sorting and tracking systems of the DA HUBs and Branches, and the racking ystem t is a constantly evolving platform that adapts to changes in operational and logistical processes he system now allows a daily view of the performance trend, giving an almost real-time snapshot of the network's performance

With the aim of pursuing continuous improvement of the customer experience and the quality of the service offered, the Group adopts a listening model aimed at identifying priority actions to be implemented pecifically, oste taliane analyses verbatims, i e spontaneous customer responses on critical areas encountered during the customer journey with oste taliane products and services, obtained by means of periodic surveys in relation to the Group's G objectives hese opinions are then translated into et romoter core terms, which is a measure of customer satisfaction to the point of recommending products or services to others Based on these assessments, the business units identify the critical issues on which to intervene and direct their improvement actions, which are communicated by each owner within the Company in order to be implemented

83.8%

of customers say they are satisfied (engaged) with the Group's services

he continuous listening model is guaranteed through the Customer Feedback Management (CFM) service, a company service activated for conducting surveys on the quality perceived by customers in relation to the Group's products and services his tool provides real-time survey results, exploiting a highly efficient semantic engine oste taliane is actively working to consolidate itself as an ecosystem platform for the provision of innovative products and services following a customer-centric perspective, enabling operational and business models quickly and aligned with growing market and customer needs n particular, during 2023, the realisation of the advanced reporting of all CX results through a Customer

ntelligence module was completed, which is a fundamental tool to support the business units in directing improvement mprovement measures also include the use of a rocess Mining solution for analysing the processes acted upon in order to identify unknown "patterns" useful for improving the customer experience Within the framework of the Customer Listening structure, several projects were carried out to create a solid base of skills, methodologies and tools for the consolidation of a datadriven approach to process improvement n 2023, the first projects on production data were also started: Health Claims settlements, uccessions, Over-the-counter avings Books, oste Delivery Web o support the improvement process and the Customer

more than 340

resources deployed in the crossfunctional task Force in 2023

xperience mprovement lan, a cross-functional ask Force is also active, mobilising more than 340 Group resources

he impact of digital transformation is of significant importance in several sectors, with particular relevance in the postal context oste taliane is therefore called upon to recognise these transformations and to take targeted action to offer customers new tools that are indispensable for meeting their needs With an increasingly omnichannel focus, the Group has adopted an innovative approach in integrating traditional services usable through the physical network with new digital offerings accessible on the move

he initiatives launched and pursued during 2023 cover most of oste taliane's business areas, such as the ongoing process of simplifying the activation of the home banking channel, the ongoing analysis and reorganisation of the content offered on the website, the release of the new online Banco osta Loan subscription function, the launch of the new " oste taliane" app , and the opening up of digital channels (app and web) for the oste ay volution application using D identification n addition, oste taliane implemented activities to improve the main processes of its physical channel Among the most significant interventions, we can highlight the evolution of the access model in the ost Office, the simplification of identification in the ost Office and the introduction of identification via App ( ostepass), the completion of the customer profile to allow to operate in multi-channel and the signing of the ature also from the ost Office

Punto Poste Casa&Famiglia The value of a dedicated relationship

unto oste Casa&Famiglia is the space in ost Offices with a dedicated operator to find solutions among products and services suitable for families A place designed to further enhance the relationship with the customer and develop a long-lasting relationship through a wide range of products, offers and services of the oste taliane Group

unto oste Casa&Famiglia was created as a connection point to meet and support family needs, with a range of products and services designed and modulated for different needs For example, osteMobile telephone offers, oste Guidare icuri car insurance policies, and oste nergia electricity and gas offers are available

At the unto oste Casa&Famiglia, it is also possible to request further products, starting with the simple form of savings typical of the avings Book and the nterest-bearing ostal Certificate, and going on to the possibility of requesting, for example, the oste ay volution card

t is precisely the presence of a dedicated relationship that is the cornerstone of this important dedicated space: the presence of an Operator who orients customers towards the solutions best suited to their needs, accompanying them through the stages of the sale, from the reception to the subscription of the chosen product or service

370

Poste Italiane Group's customer care awards

Over the years, the oste taliane Group has placed an essential value on all activities related to customer satisfaction hanks to this continuous care for such issues, it has received several awards:

- PostePay Digital wins Product of the Year 2023 award

he ostepay Digital Card, which has already won the " lected roduct of the Year 2023" award in the "Financial ervices" category, was recognised for its ability to introduce innovation and satisfaction among customers by promoting an increasingly digital-oriented experience he award was based on the vote of 12,000 consumers through taly's leading research on innovation and customer satisfaction

he distinctive features of ostepay Digital include direct use from a smartphone, enabling online, contactless and QR code payments via the oste ay app t also offers the " 2 " service for transferring money in real time between ostepay cards, the purchase of public transport tickets, and the possibility of withdrawing cash at ostamat A Ms via the cardless withdrawal service from the App ostepay Digital also allows users to associate an BA code to make transfers, credit salaries, pay utility bills and request the physical version of the card

o further simplify the online shopping experience, oste ay has implemented an accelerated process for customers with D hese customers can apply for the ostepay Digital Card via the postepay it website and the ostepay app, authenticating quickly via their D Digital dentity provider his approach allows customers to activate the ostepay Digital within minutes and start using it immediately

• Award at Smau for innovation in customer care service systems:

very year, mau, taly's leading trade fair dedicated to information and communication technologies, presents the nnovation Award to companies that have contributed to the growth of the country system with innovative and concrete proposals he 2023 award-winners also include oste taliane, which has introduced a customer care service intermediated by artificial intelligence via voice (voicebot) and chat (chatbot and appbot), with the aim of promoting a radical cultural, organisational and technological change in the assistance model n the new model, the human operator was thus gradually supported at first by a chatbot, a system that operates in natural language, dialogues and provides answers and solutions to customers via chat on the site/app and WhatsApp, which was later joined by a telephone answering channel on the helpline numbers via voicebot, which provides voice answers in automatic mode on the various channels for the different areas of oste taliane's business, from finance to logistics

- PostePay among the winners of Italy's Best Customer

oste ay p A is among the award-winning companies in the first edition of taly's Best Customer ervice 2022-2023 he award aims to identify the brands with the best customer service and the companies that have distinguished themselves for high quality customer service in taly he ranking was carried out by the Corriere della era supplement "l' conomia" in cooperation with tatista GmbH, an international research and analysis company, and involved the opinion of around 15,000 consumers he category for which oste ay took first place is that of Fixed elephony and nternet Companies, with the osteMobile brand he consumer survey considered several parameters, including professional competence, communication, service availability, customer orientation, and service variety

• Postepay among the "top contact centres 2023-2024" for Postemobile customer care For the second year in a row, oste ay was among the companies that excelled in customer support in taly in the " elecommunications" category his is the result of a survey conducted by the German nstitute for Quality and Finance ( tqf) and the newspaper "La Repubblica A&F" with the aim of giving consumers an assessment of excellence in this specific area he study analysed the satisfaction expressed by over 122,000 consumers who used the three main contact channels of the companies surveyed - telephone, chat and e-mail - with reference to 200 major companies active in taly in 31 different product sectors oste ay pA ranked among the best and was awarded the " op Contact Centre 2023-2024" certificate for ostemobile customer care he award recognises the strategy of the entire oste taliane Group based on the enhancement of the relationship with the customer during all its phases: from the purchase of a product/service, to its use, to customisation, to the request for assistance

Dissatisfaction with customer needs is a risk element that is assessed by the Board of Directors, also with reference to customer experience indicators, such as the complaint rate n 2023, this indicator was at a stable level, after a significant reduction of 25% in 2022 compared to the previous year he tool for optimising own operational activities and guaranteeing high quality standards is the monitoring of the quality delivered and perceived by the customer, both on a relational and

54 mln contacts managed in 2023 (+31.1% vs 2022)

transactional level ndicative of the Company's desire to meet the needs of its customers is the use of quality resources in the Mail, arcels and Distribution function, distributed at local and central level, who carry out targeted measurement, prevention and improvement activities to achieve the company objectives

n order to acquire and analyse data from designated sources of interest, such as social networks, app stores, ost Office reviews on Google Maps, public online information sources, blogs and forums, the Company uses a Web Opinion Monitoring (WOM) service Real-time reporting on all relevant topics is generated through this service he service is designed to meet the needs of various participating structures and integrates the services used by the various functions of oste taliane and the Group companies in a single solution

At an organisational level, through the area dedicated to the management of the digital channel, activated in 2020 to allow the continuous improvement of the experience K s detected both by listening to customers and by the analysis of external sources (app stores, Google comments, etc ), interventions were implemented that had a positive impact on the C K s and app ratings detected on the channels he main releases include: the simplification of the online purchase of the main products ( ostepay Digital Card, Current Account, ostal savings book under 18 "Libretto Minori", Loans), the evolution and innovation of the Home page of the ostepay and Banco osta apps with engagement elements to stimulate sales and transactions, the possibility for customers to withdraw without using their card at A M ostamat using the apps, the enabling of utility payments, the consultation of receipts of payments made online and in ost Offices directly on the notice board, the online request and consultation on the notice board of the ( quivalent conomic ituation ndicator) declaration also for minors, the reloading of the ostepay card during e-commerce purchases by supplementing the remaining balance to complete the purchase, the autonomous management of the request to replace an expired card, and simple activation via app

n addition, the continuous improvement and simplification of key processes from an omnichannel perspective continued also in 2023 Among the most significant interventions, we can highlight the evolution of the access model in the ost Office, the simplification of identification in the ost Office and the introduction of identification via App ( ostepass), the completion of the customer profile to allow to operate in multi-channel and the signing of the ature also from the ost Office Furthermore, with the aim of simplifying and at the same time improving the customer experience, the new Ufficio ostale app, with a new design and customised user experience, has been available since June 2023 he new app was renamed oste taliane App as of October, and will be further enhanced with new financial functionalities, and improved on the basis of reports from customers themselves he areas for improvement that emerge in relation to customer feedback constitute, in fact, an important stimulus for process assessment and revision activities, together with the support activities functional to maintaining quality certifications and those identified by the "cross-functional communities" n this regard, the use of a process mining platform, purchased in 2021 by the Group, continued in 2023, which enables more effective service quality improvement projects with a strongly data-driven approach

As of 2021, oste taliane has held U O 22222 certification for financial advisers who assist savers in their investment choices his demonstrates oste taliane's commitment to supporting the widest application of ethical and sustainability principles, enhancing the development of professional skills and offering services dedicated to customer needs n this regard, oste taliane is the first of the large talian companies to achieve U O 22222 and U 11348 certification for the consultancy service model on the subject of investments of financial promoters engaged in the role of personal

financial planner n addition, the concomitant certification on purchasing methods places oste taliane among the country's leading economic and production entities qualified in sustainable management of purchasing processes and supplier relations

oste taliane brings the system for collecting and managing complaints under the responsibility of the "Customer Care ervices" function he objective of this structure is to address and guide the customer's expectations through a series of customised solutions, adopting a model that makes service a competitive lever both of the customer relationship and of

44% contacts managed by Artificial Intelligence (+5% compared to 2022)

the support of the business n this regard, the complaints system implemented by the Group is streamlined and easily accessible to all, including the most disadvantaged groups and those at risk of exclusion for reasons of financial illiteracy, so that problems that arise can be immediately resolved With the number of complaints received in line with the previous year, the year 2023 was characterised by excellent performance in terms of average complaint handling times (for the same number of resources deployed) in all service areas, in a context of relative volumes of work for all types of requests Compared to last year, average waiting times dropped by 31% when considering all services, to 70% for financial services he Group's objective is to build a customer support journey for each business segment, enabling over time more efficient management of the customer experience, with

the progressive adoption of innovative technological tools With the spread of artificial intelligence within Customer Care ervices, oste taliane managed to increase the number of managed contacts by 13% in 2023 compared to 2022, with A accounting for 44% of managed contacts

oste taliane has always given the utmost consideration to the needs of its customers, aiming to ensure their complete satisfaction by offering products and services tailored to their needs and preferences n situations in which the customer's expectations are not met, the customer's collaboration plays a fundamental role for the Company in order to identify and resolve the causes that generated the inconvenience his collaboration makes it possible, on the one hand, to satisfy the needs of the person concerned and, on the other hand, to implement the necessary corrections and activities aimed at improving business processes o this end, oste Vita has implemented a Complaints olicy, which specifies the principles for managing customer complaints, aimed at their correct and timely treatment Furthermore, the drafting of a monthly complaints report allows the monitoring of the activities described above, highlighting the main causes of complaints and the corrective actions undertaken to resolve them

he theme of quality, which is also strongly integrated in the corporate development strategy, plays a role of primary importance in the oste taliane Group ntegrated olicy he objective is to map, within the framework of quality management systems, all processes that contribute to the design, development and realisation of products or services n addition, oste taliane attaches particular importance to building relationships with customers based on maximum transparency and fairness o this end, the Company demands from its employees a constant commitment to meeting customer expectations he ntegrated olicy, containing the fundamental principles, is expected to be implemented by Group Companies, adapting them to their autonomy and independence, taking into account their size, organisational and operational context, as well as any regulatory provisions, such as in the Financial and nsurance sectors

n order to ensure the highest level of effectiveness and efficiency in processes, activities and resources, the Company has implemented an ntegrated Management ystem his allows the production of a report representing the trend of complaints and customer experience indicators As far as quality is concerned, the ntegrated Management ystem enables the Company to constantly promote initiatives to improve the regulatory system While respecting the autonomy of individual business units in drafting content and procedures, sharing of formats and tools is favoured

n particular, in accordance with the U O 9001:2015 standard, the Group has adopted an effective Quality Management ystem, thanks to which it carries out its activities in accordance with the following principles:

• Poste Italiane Group oste taliane's Financial tatements at 31 December 2023
  • maintain adequate service quality, specifically, by ensuring efficiency and continuity of service in accordance with the specific requirements;
  • maintain the adequacy of the services offered to customers;
  • respect time and optimise the cost/quality ratio of products and services

he Quality Management ystem, through its functions, ensures the satisfaction of customer expectations, allowing oste taliane to pursue continuous improvement in performance and the standard of competitiveness on the market he ystem plays a fundamental role in defining the rules and limits applicable to quality control at all levels Consequently, any anomalies found are regularly recorded and reported through specific audits and periodic checks

With regard to the quality of the service and products offered, the foundations of the management model are based on dialogue with customers, which allows for the establishment of a relationship of harmony and to identify their needs in the best possible way his action is characterised by:

• sharing with op Management periodical reports on quality indicators;
• detection of the level of Customer experience in relation to the various business units, measured twice a year through the detection of the et romoter core ( ), indicative of the level of customer satisfaction hese are surveys using CA (Computer-Assisted elephone nterviewing) and CAW (Computer-Assisted Web nterviewing) methods that an external research institute carries out on samples of customers representative of the reference universe;
• measurement of the level of customer experience with regard to the use of the channels, measured by the Customer ffort core, which detects the ease of access to them hese are CA measurements for customer service and CA (Computer-Assisted ersonal nterviewing) for ost Offices;
• monitoring of the degree of customer satisfaction and gathering of opinions and suggestions to identify opportunities for improvement using the Customer ffort core (C ) indicator, applied to the Group's channels ( ost Offices, call centres and the web), which makes it possible to analyse how easily and in how long the Company solves problems;
• adequate management of complaints, aimed at identifying and remedying, through the necessary corrective actions, the causes that resulted in the inconvenience, with a view to continuous improvement of business processes

Consistent with what has been done in recent years, the Group has further optimised customer listening initiatives through the multiple touchpoints relating to postal, financial and insurance services n addition, the is assessed annually, including against the main competitors operating in the oste taliane Group's key sectors

n continuity with the previous year, continuous listening to the front line of the business commercial channels was also maintained n this regard, Large Customer Accounts and M / O Accounts have an always-on survey through which they can point out areas for improvement in sales and after-sales customer management During the year, the frequency of measurement of large customers was increased and the " nner Close he Loop" process was implemented, which consists of the analysis of customer verbatims by a cross-functional team with the aim of structuring a follow-up, which is returned to each individual customer by the Account n 2023, the realisation of advanced reporting of all customer experience results through a Customer ntelligence module was completed, providing increased support for all business units and directing their improvement

mprovement measures also include the use of a rocess Mining solution for analysing the processes acted upon in order to identify unknown "patterns" useful for improving the customer experience

As regards interaction with the customer, the active management of recalls is configured as a crucial practice for the oste taliane Group, because it constitutes an instrumental indicator for defining the service level of the entire Group his process also contributes to the assessment and management of operational and reputational risks, as well as risks related to non-compliance and inappropriate behaviour n order to analyse the progress of complaints, specific reporting systems are used, reviewed weekly and monthly, with the results reported to management ach company belonging to the oste taliane Group has adopted and implemented specific procedures, outlining the principles and methods for managing complaints, periodically submitted for approval by the respective Boards of Directors

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Poste Italiane Close to customers' needs

During 2023, the range of financial services was expanded n particular, the new version of the restito Banco osta On Line was released, reserved for current account holders and totally available via internet banking n addition, for the Quinto Banco osta ensionati ( ension-Backed Loan of one-fifth) there are promotional offers with interest rates on promotion, to encourage the financial inclusion of the specific target group hese initiatives were supported by commercial campaigns and communication activities on press and web channels

Among the initiatives carried out in the area of current accounts, the new oste taliane A was released, continuing the process of digitalising current account holders through the introduction of innovative transactional services in the App to improve the customer experience when using digital channels he new " oste taliane App" for mobile devices includes all digital services with the aim of offering a single access point with an intuitive and simplified navigation model for order and informative operations from a mobile channel

n the area of investments and savings, the methods of subscribing to investment funds remotely were extended through the release of the online fund management platform and, with the aim of facilitating the process of digitalisation of customers in a multi-channel perspective, the methods of subscribing to signature tools in ost Offices were revised n particular, it was made possible to use the Advanced lectricity ignature (F A), also in the physical channel, allowing the ostal avings customer to sign with a single tool at different touch points, eliminating hard copies and streamlining the signature process at the ost Office

n the area of insurance services, the Group planned the evolution of caring and loyalty actions towards customers, through the provision of outbound telephone campaigns and the sending of text messages integrated with Banco osta's campaign with a view to increasing the redemption of initiatives (sending communications relating to the oste Vita and oste Assicura instalment skip and oste Vita maturity dates) n the course of 2023, the customer journeys of the digital assistance of oste Vita and oste Assicura were refined with the aim of improving the tool on the voice and chat bot side oste Vita also planned to open a telephone and written assistance channel for life insurance policies in the Banco osta A , providing a new channel for customer support in a multi-channel approach A multifunctional working table is being set up to streamline the claims assistance process at oste Assicura

n the area of telephony, in view of the major change in the process of mobile line portability, which had led to major difficulties for customers, process optimisation features were introduced over the past year, both customer- and service-side, in order to increase the success rate of the switch he second half of the year also saw the completion of the release of the VoL e service on all enabled terminals, which allows simultaneous voice and data traffic Finally, with a view to supporting digitalisation, two important push notifications were released in March in the ostepay App, enabling customers to be informed in advance of the depletion of their residual credit and the renewal date of their tariff plan, so that they can load and give continuity to the service, reducing moments of fault

Dialogue with consumer associations

oste taliane is actively engaged in a process of discussion, dialogue and cooperation with Consumer Associations, both on a small and large scale An important step in this direction is the Framework Agreement concluded in 2011, subsequently renewed in 2018 his agreement gave rise to the "Consumer Workshop", a permanent working and consultation group made up of a representative of each Association and members of the oste taliane Group he main objective of the "Consumer ite" is to identify optimal solutions for harmonising the needs of the Company with those of its customers, focusing on company initiatives aimed at consumers hanks to this collaborative approach, the Company has been able to improve the quality of its products and services over time he adoption of a constructive and transparent method of communication and cooperation between the parties played a key role in this process of continuous improvement

n addition, the initiative relating to the newsletter "Dialogando con i Consumatori" (Dialoguing with Consumers) continued in 2023 his is an information tool intended for the territorial representatives of Consumer Associations, with the aim of informing stakeholders about the main news related to oste taliane's activities he newsletter is a useful tool to provide new insights and recommendations, further strengthening the bond of knowledge and cooperation that has always characterised the relationship between the Company and consumers

n addition, in order to ensure the availability of all the information necessary for the efficient use of postal products and to describe the quality objectives to be achieved over time, oste taliane makes available the " ostal ervice Charters" hey provide details on main products, targets and delivery times for taly and abroad, as well as information on complaints and refunds pecifically, the Universal ostal ervice Charter includes products covered by the Universal ostal ervice (Legislative Decree no 261/99), while the ostal ervices Charter includes products not covered by the Universal ostal ervice

Cybersecurity, ecurity and rivacy

n a global landscape increasingly characterised by the pervasiveness of digital technology, which is an essential driver for the growth and continuity of any company's business, oste taliane aims to deploy state-of-the-art cybersecurity systems to effectively defend the company information assets from attacks and data theft

The Poste Italiane Group is primarily committed to protecting and safeguarding the information assets of customers and stakeholders through the use of technologically advanced systems and cybersecurity mechanisms and processes

his includes the Corporate Affairs - nformation ecurity structure, which carries out a monthly cyber risk assessment for the Group he methodology currently in use considers this risk from a purely technological point of view based on preventive technical security audits carried out on the three applications: Vulnerability Assessment, tatic and Dynamic Code Review, enetration est

• - Vulnerability Assessment is the process of identifying, measuring and prioritising the vulnerabilities of a system he assessment is performed with special tools twice a year for each application;
• - Code Review (Static and Dynamic), represents the process of checking the source code of an application to verify that the correct security controls are in place and that they are working as intended By means of special

MAIN RELATED TYPES OF CAPITAL

tools, the verification is carried out of both the source code (" tatic CR") and of the code in execution ("Dynamic CR");

- Penetration Test is the process of evaluating the security of a system or a network through the simulation of attacks that aim to gain undue access to the system Being a time-consuming activity, it is performed on a specific perimeter of applications

With the aim of ensuring effective and efficient management of potential risks in the Company, oste taliane integrates precautionary measures with two other fundamental parameters: patching and hardening hese activities, combined, aim to resolve vulnerabilities by keeping the operating system, firmware and applications up-to-date Only required ports and services are activated, while easily hackable system components are obfuscated

he cyber risk assessment revolves around two main dimensions, everity and Confidence everity identifies the level of severity of cyber vulnerabilities; while Confidence represents the degree of reliability of the cyber risk value he latter depends on the degree of coverage of the checks carried out in terms of the number of analyses completed After the entire analysis process, Recovery lans are developed, which constitute the main corrective measures necessary to fill the security gaps identified during the various analyses, including technical ones n the past, the management of recovery plans relating to the various security activities involved the contribution of various functions within the oste taliane Group

he following are the main initiatives of the year:

• - xpansion and improvement of methods for intercepting abnormal access by security guards;
• - Raising the level of monitoring and alerting;
• - mplementation of additional protection measures for traffic to oste taliane's data centres;
• - xpansion of security measures;
• - ncident management exercises;
• - taff training through phishing simulations and cybersecurity awareness initiatives;
• - nstallation of specific protection systems;
• - Adoption of new security tools in the cloud

n addition, oste taliane has undertaken a number of further initiatives:

• - developed a Security Planning, defining and implementing a methodology for planning technical security audits ( enetration ests, tatic and Dynamic Code Review) deriving from regulatory/contractual requirements and from the ecurity By Design process;
• - extended the scope of Cyber Risk analysis to include Banco osta, oste ay, oste Vita, oste Assicura, oste Welfare ervizi and other compliance/security areas;
• - set up the Information Security Committee - DTO, a periodic working table between the nformation ecurity and Digital, echnology & Operations functions with the aim of jointly planning and directing security activities and identifying areas for improvement;
• - to ensure better management of the topic, responsibility for the Group's security has been assigned to a Chief nformation ecurity Officer (C O)

n order to ensure the company's business continuity in the management of crisis situations arising from incidents of sector, corporate or widespread catastrophes that may affect the Group, oste taliane has drawn up and implemented a Group Business Continuity lan his plan is based on the appropriate identification of the systems considered most critical, the potential threats to which they might be exposed and the countermeasures to be taken he purpose of the lan is to describe the criteria, procedures, technical and organisational measures, as well as the tools adopted for emergency management (Contingency lan) and for the restoration of operating conditions prior to the occurrence of a damaging event (Disaster Recovery), in accordance with the ervice Level Agreements ( LAs) agreed with the internal customer n order to ensure its effectiveness over time, the Business Continuity lan is tested and updated annually, and in any case in response to significant organisational, technological and infrastructural innovations or, more generally, in all situations capable of generating new risks

During 2023, the implementation of the new BCM (Business Continuity Management) model continued, which, after the consolidation of financial services, was extended to the perimeter of payment services with the definition of the related Business Continuity lan Organisational and technological solutions for continuity were tested and training events on business continuity were held

he document framework of the new Group Crisis, Business Continuity and ncident Management (CM/BCM/ M) model includes, in addition to the Group Business Continuity lan and the ector lans, the Crisis Management lan, the C Disaster Recovery and Business Continuity lan, Crisis and Business Continuity Communication lans, est lans, procedures and operating instructions, which ensure effective management of the Group's business continuity, crises and incidents

Already starting from 2022, in order to deal with the crisis that emerged due to the conflict in Ukraine, the levels of monitoring and attention of security events have been raised and cyber intelligence activities have been strengthened to

security breaches/cybersecurity incidents compared to 2022

-42%

prevent or promptly intercept potential cyber attacks on damage to the oste taliane Group For the same reason, in 2023, in addition to continuing to monitor cyber phenomena related to the conflict in Ukraine, monitoring was also expanded to include cyber phenomena related to the conflict in alestine n addition, specific measures were put in place to minimise the attack surface and its impact on the Group's customer base

he Operational Continuity lan and the Crisis Management lan, an integral part of a framework that also includes a Disaster Recovery lan, a Communication lan, a est lan, operational procedures and instructions, guarantee effective management of operational continuity and crisis n particular, in 2023, oste taliane recorded a 42% reduction in cybersecurity breaches or incidents compared to 2022

With the aim of minimising risks related to the human factor and related impacts, numerous initiatives were implemented at Group and individual business unit level in 2023 he Mail, arcel and Distribution services were the subject of a specific security assessment with the definition of re-entry plans, including an expansion of cyber protection measures and an increase in the level of monitoring

n the area of Financial and ayment ervices, the Crisis, Business Continuity and ncident Management (CM/BCM/ M) model was implemented as a priority

At Group level, in continuity with previous years, technical exercises were carried out for staff with the aim of strengthening the capabilities of detection, analysis and combating cyber threats or attacks, and able op cenario exercises for managing cyber incidents and operational continuity aimed at testing company processes and procedures, as well as the correct interpretation and effectiveness of the procedures in real-life cases he adoption of innovative tools and the transition to the "proactive" monitoring model have enabled the Group to increase the organisation's level of cybersecurity he conduct of staff exercises showed a further improvement in the ability to analyse and detect oversights ndeed, phishing simulations in 2023 showed the ability of employees to recognise suspicious e-mails

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Masterminds he oste taliane podcast on cybersecurity

During 2023, oste taliane published a podcast series on its corporate intranet entitled "Masterminds - Rise and Decline of America's Most Wanted Cyber criminals", dedicated to the vicissitudes of some of America's most notorious cyber criminals

he podcast was developed with the aim of raising awareness of issues concerning the digital world, which are very often underestimated by most users he podcast is supported by a cybersecurity section that employees can subscribe to, in order to receive all news and updates related to the cybersecurity sphere

Computer mergency Response eam (C R )

he size and complexity of oste taliane's organisation means that a specific and targeted cybersecurity strategy needs to be outlined For this reason, the Company set up the Computer mergency Response eam (C R ) in 2013, which is made up of computer security experts who take care, 24 hours a day, every day of the year, of the protection of the company data through prevention, analysis and protection against cyber threats C R , whose services are certified to O/ C 27001, O 9001 and O 37001, has implemented processes for the continuous monitoring and improvement of its services hrough internal audits, third-party audits, management reviews, K management, and regular reports to management, it ensures effective management and continuous improvement of its services and actions taken against defined lessons learned

umerous activities are provided by C R :

• - Critical ystem xposure: O 27001:2013 certified, the Critical ystem xposure service has as its main objective the early detection of vulnerabilities potentially affecting the delivery of oste taliane's services Critical ystem xposure Analysts constantly monitor endogenous and exogenous sources of information, collecting and analysing data from them, and then classifying them appropriately according to their reliability n this way, it is possible to alert internal stakeholders (constituencies) in a really short time, providing the necessary details and suggestions for vulnerability mitigation Vulnerabilities are analysed through an algorithm that assesses their dangerousness, considering the probability of exploitation and the importance of the technological asset on which it impacts he Critical ystem xposure service enables oste taliane to guarantee a prompt response to the risks that could threaten the company and information assets, and to provide continuous and constantly updated knowledge of the global security scenario
• - Brand rotection: O 27001:2013 certified, the main objective of the Brand rotection service is to constantly monitor the ocial etworks and Market tores where the Group's Mobile Apps are published in order to verify whether fraudulent use is being made of oste taliane's proprietary brands or whether confidential or false information is being disseminated A Brand rotection service is a highly specialised and essential service for a company like oste taliane because controlling the use of a brand means ensuring that it is always legitimate, thereby increasing customer trust and loyalty
• - Cyber hreat ntelligence: the main purpose of Cyber hreat ntelligence activities is to monitor ongoing trends in cybercrime, cyber espionage and hacker activism n this perspective, the Cyber hreat ntelligence service is aimed precisely at collecting and analysing potential existing threats that could materialise into attacks on oste taliane's systems, outlining scenarios of varying complexity At the end of the analysis, the team shares any countermeasures identified with the system operators, so that they are always one step ahead of potential attackers, in order to prevent and counter the risks of aggression against oste taliane's resources
• - nformation haring: the main objective of the nformation haring service is the constant sharing of information on cyber attacks and threats that may affect corporate computer systems
• - Cyber attacks require a prompt response and appropriate preventive actions, which, thanks to the exchange of information, can shorten timeframes and put companies in a position to "play in advance": by focusing precisely on the fact that, individually, organisations cannot have a truly comprehensive picture of the potential risks they are exposed to and the damage that could result, by creating qualified exchange networks instead, it is possible to put up a united front against cyber crime O 27001:2013 certified, the nformation haring service aims to create this network with which to share a view of the cyber threat scenario and provide useful information on preventive or reactive actions to be taken
• - nformation security event and incident management: this activity is developed in two main directions On the one hand, there is security monitoring, i e the 24-hour monitoring of security events, analysis and prevention to prevent and detect attacks On the other hand, the management of the incident itself in order to restore the normal provision of the impacted service
• - nfrastructure and application audits: activities to detect and remediate any vulnerabilities on the external perimeter and on specific applications in order to minimise the attack surface
• - Big Data Analytics: activities aimed at correlating and analysing information to identify and monitor alleged anomalous and/or atypical phenomena, in order to identify possible criticalities in the use of data and prioritise their management hese analyses are carried out in support of the activities of the C R and the other security bodies
• - Cybersecurity awareness: activities aimed at raising awareness among employees, customers and external users on cybersecurity issues through exercises, phishing simulation campaigns, gaming, webinars, podcasts, videos, infotainment he initiatives are implemented on an ongoing basis, exploiting all digital channels available to the Company, in order to reach as wide an audience as possible
• - Crisis and Business Continuity Management: activity that evolves the existing Business Continuity Management model and defines new Crisis Management and ncident Management models All of this, of course, in a multi-business and multi-compliance perspective, precisely to fit into a fully integrated context, involving the entire Company, so as to guarantee effectiveness and protection in all the activities that operate so extensively in our Country

Over the last few years, C R has evolved towards a new generation model oriented towards the management of big data and the use of modern data analysis and business intelligence tools, the increasing use of algorithms and techniques of Artificial ntelligence, machine learning and data mining his model allows the centralisation of all information pertaining to oste taliane's security domain n addition, C R develops training and awareness initiatives aimed at promoting a cybersecurity culture among the Group's technical and non-technical staff, customers and citizens

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

IT security oste taliane's commitment between education and awareness

Despite the increasing use of the web, many talian citizens still underestimate the risks associated with the digital world oste taliane therefore dedicates particular attention to educating and raising awareness among citizens in order to promote a conscious and safe use of the nternet Considering the current and priority relevance of this issue for the Company, specific actions were implemented, including an awareness campaign on the company intranet A computer security portal is available within the intranet, where news and weekly lessons on how to keep data up-to-date and ensure security are regularly published oste taliane is also extending its reach, trying to raise awareness among ordinary users through communication methods that can involve everyone, in order to increase the perception of danger in the digital world

oste taliane is constantly striving to ensure the care and safety of its employees and customers

he Business Control Center (BCC) is the area of the Head Office in which oste taliane's business processes are monitored according to an integrated service delivery model and is presented as the company's technological hub he tasks for which this function is responsible include:

• - real-time control, 24 hours a day, of the services provided by the Group;
• - the protection of the safety of customers inside ost Offices and of personnel in all workplaces;
• - combating fraud and cybercrime;
• - experimentation of the services offered by the Company

he BCC consists of seven control rooms that use state-of-the-art applications and instrumentation to ensure the proper functioning of the postal-logistics network and guarantee the delivery of services and correct communication to oste taliane's customers

oste taliane maintains a solid collaborative relationship with the ostal and Communications olice his collaboration includes activities aimed at preventing and combating offences related to the products and production processes of the services offered by the oste taliane Group n addition, surveillance activities are carried out at ost Offices during scheduled payment periods A task force was also set up with the task of analysing new cyber fraud methodologies, accompanied by the development of new cybersecurity tools hese measures were necessary in response to the changing scenarios and new types of malicious events his has prompted the Company to quickly readjust its operations over the years, especially with reference to payment systems for e-commerce and financial and insurance services n these areas, it was necessary to intensify control activities and upgrade the physical and security structures

ersonal data protection

Over the years, the Group has attributed great importance to the issue of personal data protection, constantly strengthening its corporate regulatory system and to ensure full compliance with current provisions and what is regulated within the General Data rotection Regulation (GD R) oste taliane manages the control of the management review process at Group level, as set out in Article 32 he regulatory system, made up of procedures, guidelines and policies, is applied in relationships with all partners and suppliers to ensure correct management of risks related to the topic of privacy in all of the Group's operations Failure to comply with the standards defined by the system, which may lead to violations, may result in the application of disciplinary sanctions to employees, in accordance with the provisions of the oste taliane CC L ( ational Collective Labor Agreement) hese sanctions are gradually harsher according to the seriousness of the

breach (written warning, fine, suspension from work with deprivation of pay, dismissal without notice, etc ) n this context, oste taliane has drawn up a Corporate olicy on ersonal Data rotection and rivacy Guidelines and a ersonal Data rotection Management ystem he latter was introduced with the aim of ensuring uniform data management across the Group he Guideline defines the corporate privacy model and implements the principles of rivacy by Design and rivacy by Default, underlining the Company's obligation to ensure adequate protection of personal data right from the design of products/services and systems, as well as ensuring compliance with privacy legislation in the predefined data collection and processing processes oste taliane is also committed to ensuring proper management of data protection risks, by carrying out the periodic management review process at the Group level

Through the adoption of policies and information campaigns aimed at raising awareness of data protection, the Group promotes the protection of the personal data of all stakeholders

oste taliane's rivacy Framework was created with the aim of ensuring compliance with these obligations and aspiring to the continuous improvement of the management system his framework provides an overview of the areas of intervention in which the relevant organisational and technical frameworks that have been developed operate, in order to provide continuous monitoring of the progress achieved

oste taliane identifies for the entire Group the figure of the Data rotection Officer, a privacy expert who assumes responsibility for supervising compliance with the regulations on the protection of personal data by the data controller, as provided for by the GD R, and who also ensures the drive towards continuous improvement

Consistent with this approach, the rivacy function ensures nomophylactic oversight at Group level for all responsibilities relating to personal data protection issues and coordinates the development of the aforementioned framework

he rivacy ervice Centre operates within this function and its task is to represent a single point of reference for customers in matters of privacy and to collect and manage efficiently and centrally all the requests received from customers, such as requests for access, rectification or integration of personal data and changes in the consent given, also monitoring their progress in order to identify any opportunities to improve business processes

he rivacy ervice Centre, due to its approach towards continuous improvement, unique handling of customer requests and correct compliance with regulatory provisions, is certified for its information security management system according to O 27001:2013 and for personal data protection according to O 27701:2019, through which oste taliane's rivacy function is able to demonstrate the compliance of certified services with the GD R and other data privacy requirements

7.15 INNOVATION			MAIN RELATED TYPES OF CAPITAL

nnovation and digitalisation of products, services and processes

n the context in which it operates, oste taliane is called upon to face challenges that require profound strategic changes he Group's attention is focused on two important ongoing processes, which are closely interrelated: on the one hand, technological development to support new products and services, and on the other, a diversification of the offer, enabled

by a new network infrastructure and articulated in financial services, insurance, digital payments and strengthening of the logistics network oste taliane has rapidly evolved to become an 'ecosystem' platform capable of supporting, on the one hand, the daily needs of all customers and, on the other hand, guaranteeing a highly customised service for more sophisticated customers he digital transformation undertaken by oste

ransactions carried out on digital channels (web and App) compared to 2022

+20.4%

taliane in recent years has involved not only its own offer, but also the distribution model which, through an omnichannel strategy, allow the Company the possibility to provide services in step with the changed needs of its customers

For oste taliane, innovation and digitalisation are two central drivers of strategic progress and enable it to guarantee its customers innovative technological solutions, also through the integration of its own products and services with those of third parties hrough these drivers, the Company not only guarantees the accessibility and efficiency of its offer to all citizens, but also promotes the connection with the ublic Administration and the talian entrepreneurial world, setting itself as a reference point on the path towards innovation and digitalisation of the country

Poste Italiane contributes to the creation of value for society, through continuous technological evolution, capable of influencing the reduction of environmental impacts and promoting social inclusion, through products and services accessible to all customers.

he constant commitment to the search for innovative digital solutions and the ability to integrate new business models has enabled the Group to achieve important results for the development of its business and for the creation, through the review of its products and services, of shared value for society and the country he Group has implemented a programme of "digital transformation" of all its service and offer models in order to guarantee its customers full digital contact experiences his programme, which was significantly accelerated in 2021, in view of the effects of the health emergency, made the Group's products available to customers in conditions of absolute safety

n particular, in 2023, the Group worked to strengthen the digital sales channel by expanding the available functions, extending the range of products and services that can be purchased directly through the Group's digital properties (Group's websites and A s), optimising the osteBusiness infrastructure, and investing across the board in cloud-driven technology infrastructure, data-driven companies and advanced A -supported assistance

nnovation and digitalisation of products and services

he Group's omnichannel strategy is aimed at creating an "ecosystem" and multichannel platform model which, thanks to cutting-edge physical and digital channels and simplified processes to serve its customers, aims to guarantee an excellent customer experience on all points of contact, through the proprietary physical network, the digital infrastructure and remote contact points and the physical network of third parties

During 2023, oste taliane achieved important results in terms of development and value creation for the country and the community, and thanks to its constant commitment to the search for cutting-edge digital solutions and the integration of

new business models, it was able to revisit its range of products and services and on opening further communication channels with its customers

Payments and current accounts

Measures were implemented in the area of payments to streamline existing processes aimed at improving the customer experience by increasing the use of oste ay's products/services increasingly focused on omnichannel hese actions also concerned communications, so as to make the information easily accessible to the customer n particular, in the area of issuing, the company confirmed its commitment to implementing communication activities in order to make the status of its charter and its operations clearer and more transparent n addition, the content of the website and the documentation related to the services and products available for the Customer ervice function are periodically updated using the feedback gathered through listening to the customer Consistent with the oste ay Operating Rules (ROF) and in compliance with the roduct Oversight Governance ( OG) process, periodic monitoring is carried out for the products issued, with particular regard to:

• information flows between distributor and manufacturer concerning the coherence between the target market identified for the product and how it was placed with customers;
• evaluation of the results and critical issues that emerged during the marketing phase

pecifically, in order to address the actual negative impacts, an internal oste ay cross-functional table was opened to identify and map the critical points and take timely action on them

he Group continued with the objective of implementing the digital payment services available, through an ecosystem of collection services available for consumer, business or A customers, usable both with a physical network and through web channels or apps till considering digital payments, the Group in the field of acquiring continues the expansion of ' oft O ' deployment on our proprietary networks and some large merchants

n 2023, the ' ay and Withdraw' service was launched on the unto L affiliate network, which allows the withdrawal of small amounts of cash at the same time as a card purchase transaction

A further service offered in the field of payments and current accounts is the Open Banking platform, through which customers have the possibility of managing accounts and cards, even if held at other banks or payment service providers, directly on the Banco osta and ostepay app Opening a Banco osta current account can be done directly from a mobile device thanks to the instructions provided by the app, and it is possible to choose the desired type from several options: " tart Giovani", " tart" e "Medium" With regard to the " remium" service, aimed at customers with high capitalisation and sophisticated needs, remote consultancy is guaranteed, at the end of which customers will be able to sign the necessary documents with an advanced electronic signature in the dedicated area on the oste taliane website n particular, remium consultants are carefully selected following continuous and highly specialised training n addition, Banco osta also provides a Basic account for pensioners, aimed, therefore, at holders of pension payments up to a gross annual amount of €18,000, with a free annual fee, certain types of services and a fixed number of transactions uch initiatives make oste taliane's infrastructure open and offer customers increasingly connected and comprehensive services

Furthermore, as part of the osteBusiness infrastructure optimisation process, the "My Business" service was integrated for users of the "Banco osta Business Link" current account intended for mall Business customers, which allows to have a simple and intuitive view of the financial situation, monitoring income, expenditure, cash flows, including forecasts, and the achievement of personalised income and/or expenditure objectives Furthermore, during 2023, the "Off- ite" Offer was launched, aimed at mall conomic Operators ( O ) and Business customers, which involves sales through the presence of the seller at the customer's premises and the use of automated tools for signing of contracts

n 2023, the digital payment functionalities in the business ecosystem of customers with ostepay volution Business and ostepay Debit Business cards were expanded, integrating the payment of slips (both web and app), ostepay top-ups (both web and app) and F24 forms (web) n addition, the promo providing for the refund of the first year's fee for the ostepay volution Business card in the event of a simultaneous request for the card and the ' andem Mobile O ' or ' andem hysical O ' acquiring service was renewed, remaining active for the duration of 2023

n 2023, collaboration continued between oste taliane and a number of institutions (Compass Banca, Deutsche Bank Findomestic Banca and antander Consumer Bank) for the disbursement and placement of the Banco osta loan, in all its distinct options, including those for home and car renovation

n continuity with previous years, the Group has promoted the use of A Ms, digital channels and apps for carrying out transactions, as an alternative to the counter for cash withdrawal Aware of the current context, aimed at digital progress, the Company is committed to guaranteeing its customers an offer that encourages the use of electronic money and, at the same time, discourages the use of cash ostamat A Ms are available seven days a week and in operation 24 hours a day, and most are equipped with high-brightness digital monitors and banknote dispensers protected by modern video surveillance systems and innovative security devices, such as an anti-skimming solution to prevent card cloning and a banknote staining system in case of attempted theft n addition, ostamat A Ms also allow transactions that are usually the responsibility of the counter (e g payment of utility bills)

he Group's research and commitment, as well as supporting government initiatives, have also enabled the development of a number of products and services, including:

• Postepay Digital, the first 100% digital and free ostepay prepaid card suitable for online payments, public

transport payments, payments via QR code or Google ay for owners of an Android-enabled smartphone he ostepay Digital Card, was named ' roduct of the Year 2023' in the 'Financial ervices' category, due to its innovation and customer satisfaction t is managed by the ostepay app and allows users to request association of an associated BA code to receive or make transfers, credit their salary and pay their utility bills tarting in 2022, the possibility was introduced for customers to apply for ostepay Digital also through the web Users who

decide to receive the BA card version of the card have the opportunity to request delivery of the physical card at home, so that they can withdraw cash from any A M and pay at establishments affiliated with the Mastercard circuit;

• The Postepay Debit Card is the payment card associated with the Banco osta current account for everyday purchases and withdrawals, and also for online purchases he card is environmentally friendly, produced with materials made by recovering marine plastic debris from the oceans, with material of biological origin ( LA) or with recycled VC (r VC) he ostepay Debit Card participates in the conti oste programme that allows to receive cashback discounts directly on the current account;
• he Postepay Evolution cardis a rechargeable card with BA code that guarantees the use of main banking transactions without requiring a current account he card, which is accepted by physical and online points of

sale operating on the Mastercard circuit, allows money transfers via bank transfers/postagiro, utility payments and the crediting of salary or pension By adding the card to the Apple ay and Google ay wallets, it can be used in cardless mode via your smartphone or smartwatch, in contactless mode, simply by bringing it close to the O

he ostepay volution also offers the possibility of sending money to wallets and accounts, 24 hours a day, via the ostepay app and website to more than 200 countries thanks to its partnership with Western Union For the target group of freelancers with a VA number and sole proprietorships, the 'business' version ( ostepay Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

volution Business) is available n continuation of the previous year, the possibility of extending the digital functionalities of the ostepay volution to the digital channel of the ostepay volution Business (App osteBusiness, business poste it) was confirmed, and the conversion of the card fleet to low environmental impact materials continued From 2023

onwards, it is also possible, via the ostepay App, to request ' ostepay Connect', which includes a ostepay volution card and a osteMobile M with a dedicated phone rate and allows access to exclusive services;

• Postepay Impresa, simplifies a company's management of payments for occasional services, salaries, contributions and various fees for its employees;
• Postepay Green, an eco-sustainable prepaid card, made with organic materials with low environmental impact (made up of 82% polylactic acid of biological origin), reserved for young people between 10 and 17 years old he prepaid card allows children to make quick and secure payments, and parents to quickly make top-ups through the "pocket money" system and to control transactions (parental control) he services described can be used via both web and app

channels;

• he IoStudio Postepay card is the tudent Card created by the Ministry of ducation, University and Research

and distributed to high school students he card declares student status in taly and abroad and in addition to guaranteeing benefits and advantages in establishments affiliated with the M UR, it allows membership of conti oste he card has the same functionality as the ostepay card and features high security standards, preventing payments to merchants in product categories prohibited to minors such as gambling,

adult services and liquor sales ince eptember 2023, the ostepay Borsa di tudio Card has also been made available in cooperation with M M (Ministry of ducation and Merit), which enables the crediting of funds allocated by the Ministry for scholarships for secondary school students;

• he card dedicata a Te, promoted by the Ministry of Agriculture, Food overeignty and Forestry, is a prepaid payment card on which a 'one-off' contribution of €382 50 is pre-loaded, for the purchase of basic foodstuffs only, to which a further bonus of €77 is subsequently added, for the purchase of fuel or a season ticket for local public transport
• he app withdrawal service, provided by L AY for all oste taliane Group cards, introduces the possibility

linked to a postal current account hese services are accessible from L network points of sale operating with ostepay acquiring, in line with the oste taliane Group omnichannel strategy

of making a withdrawal using the ostepay app for customers with debit card relationships

MLK Deliveries enabled for temperaturecontrolled transport

oste taliane supports talian food and wine M s

n March 2023, a partnership was finalised between MLK Deliveries p A and the company Mazzocco r l, in order to enable the logistics operator to perform temperaturecontrolled transport, i e A mode of transport that involves maintaining a constant temperature inside the vehicle - whether hot or cold - whatever the outside temperature his partnership is aimed at building a unique offer dedicated mainly to talian food and wine M s he offer includes the combination of logistics assets, such as logistics distribution platforms and a temperature-controlled last mile fleet, with scheduled delivery solutions he solution developed thanks to the collaboration between the two companies combines the technology of MLK Deliveries, which will receive customer bookings for scheduled deliveries, with the Mazzocco r l cold logistics platform

During 2023, a pilot delivery chain was launched in major talian cities pecifically, as of 31 December 2023, the provinces where the service is active are: urin, Milan, Bergamo, Brescia, avia, Mantua, Cremona, Verona, Vicenza, adua, arma, Bologna, Modena, Reggio milia, Florence, rato, istoia, Livorno, Rome, mpoli, iacenza At the beginning of 2024, the service was also extended to the cities of Genoa and isa

Furthermore, in January 2024, the joint venture 'MLK Fresh' was established between the two companies and the new product ' osteGoFresh' was launched

Sourcesense acquires 'Eco Mind'

trengthening the digitalisation process

One of the objectives of the Group's strategy is to strive to strengthen its in-house development capabilities for applications based on cloud and open source technology, significantly increasing the level of internalisation of activities and evolving towards a 'product factory' model

o support digitalisation, a technology engine, based on hybrid cloud, open A s and exponential technologies (those technologies that rapidly accelerate and shape major industries and all aspects of daily life such as Artificial ntelligence and Data cience, the nternet of hings, Virtual & Augmented Reality) was implemented and applied to all Group activities and infrastructures

n this sense, Sourcesense, on the strength of its expertise in nterprise Open ource technologies and in the development of next-generation native cloud solutions, has joined the oste taliane Group to support business innovation in the ublic Administration channel, and in particular in the Health sector Sourcesense finalised, in the second half of 2023, the acquisition of co Mind ngegneria nformatica r l (" co Mind") and its subsidiary HeadApp r l , companies operating as software factories specialising in the design and development of business, mobile and cloud-native solutions and augmented and virtual reality solutions

Furthermore, during 2023, innovation-related projects focused on Data and Artificial ntelligence, Virtual Reality, Quantum Computing, Blockchain and o by supporting innovation in the following areas through use-cases: Data driven company; hyper customisation and inclusiveness of the customer experience and service model; new business models of digital platforms and services; evolution and innovation; operations; logistics; green transformation and innovation in education

n the area of transport, the physical acquiring service was launched according to the ayment Facilitator model with F M ay on renord merchants, which will continue with the expansion of the virtual service

he payment solutions that were introduced in previous years and maintained in 2023 include:

• Apple Pay, enables contactless payments with ostepay debit or prepaid cards from enabled iO devices;
• Google Pay (Gpay), allows you to pay contactless and online directly from your Google ay-enabled Android smartphone;

• PostePay Code, through the ostepay App and the Banco osta App you can pay, at ost Offices or in affiliated shops, by simply framing the QR code with

the ostepay App, the Banco osta App or from the camera of your smartphone and authorising the payment via oste D;

• Cardless withdrawal, ostepay card holders can withdraw at ostamat A Ms without having to insert their card, thanks to the cardless mode that involves scanning the QR code shown on the A M screen; tarting in eptember, the new cardless withdrawal service was introduced in the Banco osta and ostepay apps, which will allow ostepay debit card holders to withdraw cash without using their physical card by going to one of the affiliated tobacconists in the U OL network
• Postepay Open, allows users to top up their ostepay prepaid card with accounts of third-party banks ( ayment nitiation ervice - ) and to be able to view the balance and movement list of the selected current account directly in the ostepay app (Account nformation ervice - A )

Poste Italiane among the 10 companies with the highest transformation rate

oste taliane is a constantly evolving reality that shows a special regard for innovation, representing talian excellence in this field As proof of the Group's commitment in this regard, the University of avia, on the occasion of the presentation of a multidimensional survey carried out by the newly-established R ( nstitute for ransformative nnovation Research), included oste taliane among the 10 talian companies with the highest rate of transformative innovation, a concept that expresses the ability of companies to renew business models, initiate a digital transformation and pursue an ecological and social transition

According to the report, the companies at the top of this ranking, which also include oste taliane along with important companies operating in the financial, insurance, food, but also banking, communication, construction, sustainable energy and fashion sectors, have shown greater agility in facing new global challenges, such as digitalisation and sustainability

Collections

With regard to the collections sector, oste taliane's role is stable in the ago A system, also thanks to the extension of the offer of services dedicated to the Central and Local ublic Administration ( AC) in digital channels (web and apps)

n 2023, the development and deployment of payment solutions to the public administration continued, allowing for greater digitalisation of the process and a reduction in paper payment receipts n the payment experience at physical channels,

the offer includes the possibility of dematerialised (paperless) payments and in this direction, projects aimed at digitalised invoice alerts are also being implemented he pilot project has already been launched within the oste taliane Group

As early as 2020, oste ay pA, in addition to Banco osta, is also accredited as a payment service provider on the ago A system, allowing customers to carry out these operations on all digital channels, in post offices and through the portals of creditor bodies, also for payment notices from bank current accounts n addition, in continuity with previous years, in compliance with the Ministerial Decree of the M F of 30 April 2021, oste taliane has kept active the solution ' ncassi iattaforma per le Amministrazioni dello tato' (Collection latform for tate Administrations), which allows to manage payments related to the practices of tate ublic Administrations

ince 2021, oste taliane customers have the option of using the A nstant Credit ransfer (or C nstant) service on digital channels, through which they can arrange payments that are credited to the beneficiary in less than 10 seconds, and in 2023, activities to expand the offer and enable new use cases in digital and instant

With reference to the insurance area, also in 2023, the Group provided the service in the third-party motor liability market, with the oste Guidare icuri product, which saw the Company adopt a gradual sales enabling approach for the distribution network he service provides extensive coverage and includes a number of free warranty extensions he car policy is designed to put the safety of the family at the centre, and with the "Guida Libera" formula it allows maximum flexibility in the use of the insured vehicle by the members of the household o subscribe to the policy, customers can go to one of the about 5,000 authorised ost Offices, after booking an appointment via the Banco osta app or online

Also in the area of insurance, oste taliane continued with the marketing of an integrated Life and on-Life offer whereby subscribers to specific Life policies receive a joint offer for a on-Life policy

A further innovative solution active in the field of digital savings is represented by oste taliane's Digital Money Box ( alvadanaio Digitale), a free digital service that allows customers to set aside specific sums and reach micro-spending and/or saving goals, through the management of their mart passbook, Banco osta account and/or ostepay volution prepaid card he service provides the possibility of creating up to 5 savings targets at the same time for a maximum total amount of €5,000 he customer chooses the sum to be accumulated, the date of attainment (from 1 to 24 months) and the relevant category (e g travel, leisure) with the option of customisation hrough the sharing functionality, it is also possible to ask family and friends for a contribution to the achievement of the objective

Poste Italiane supports the Digithon digital marathon

A four-day full immersion in the digital world and an opportunity for innovative ideas and businesses to meet and connect he inventors measured themselves against the brightest realities of the talian digital scene, strengthened their network of contacts, multiplied synergies and opportunities for collaboration with companies, and discussed directly with major investors, including oste taliane n addition to the competition, the event's core event, there were also major events in the square open to the public: appointments to explore in-depth with the protagonists from the world of institutions, culture and talian and international companies, the issues related to the digital world and their impact on society and the economy

Telephony and Energy

n line with the communication services strategy of previous years, which aims to bring advanced internet connectivity solutions to individuals and companies, oste taliane, through oste ay pA, has maintained its agreements with two national operators, Open Fiber and M Open Fibre is a provider of direct internet access and connectivity services to customers through the use of fibre (F H) and fibre blended copper (F C and F ) access technologies he second

agreement, on the other hand, refers to nternet access and connectivity services, but only with F H technologies he partnership with Open Fiber will ensure broad coverage in cities and small towns, while the agreement with M envisages the deployment of the F H network in more than 1,600 municipalities nationwide by 2025 he dual initiative expands the portfolio of offers aimed at the consumer and business market with new ultrabroadband fibre-optic services, and aims to reduce the digital divide in taly

During 2023, oste taliane also established itself as a major operator in the telecommunications sector, not only thanks to its partnerships with Open Fiber and M, but also for having confirmed and/or implemented initiatives for home and mobile telephony:

• Postepay Connect Back, a service offering an exclusive cashback function ubscribers of the offer receive a monthly cashback discount that is credited directly to ostepay volution, equal to the unused Giga of the tariff plan Cashback can be used without time constraints and for any type of expenditure;
• PosteMobile Casa WEB offers 4G wireless internet connection for the home he service can be purchased online as installation does not require the presence of a technician, and offers unlimited high-performance traffic (speed up to 300 Mbps), with a Wi-Fi modem included on free loan;
• PosteCasa Ultraveloce, the data-only offer with which oste taliane entered the broadband market that allows users to surf from home at fibre speed (1 Gbps) without limits he service, which can be subscribed to online in a full-digital process, includes a second unlimited connection on a 4G network to offer customers a fast provisioning and full connectivity experience n addition to the provision of a Wi-Fi modem and a U B stick on loan for free, subscribers to the offer can also activate the 'voice' component for unlimited calls from home to all national fixed and mobile numbers he PosteCasa Ultraveloce Start product, which can be subscribed to at post offices and provides only a fibre data connection, leaving the customer the flexibility to choose a second connection on the mobile network with a 4G U B stick oste ay customers with D can access a simplified process to apply online for fibre connectivity;
• Mobile Tariff Offer, offers mass market promotions, which can be activated from the physical or online channel, which include a high amount of giga and are reserved for all customers;
• Mobile phone services in the Postepay app, with which osteMobile M card holders, after registering on the poste it website, can monitor traffic details and make top-ups directly from the app Additionally, customers have the opportunity to check their telephone rate plan, bonuses and active promotions, as well as available options

hrough the expansion of oste ay's digital offering, the oste taliane Group positions

itself as a reference institutional player for the digitalisation and development of the country, especially in the areas defined as "market failure areas" n 2023, in continuity with previous years, the trend in digital app downloads is positive, accompanied by a steady growth in transactions carried out via consumer digital channels (websites and apps)

+15%

downloads from the oste D App compared to 2022

he year 2023 was an important year for the ' oste nergia' offer, which reached over

500,000 electricity and gas subscriptions

+16%

downloads from the oste ay App compared to 2022

oste nergia is an electricity and gas offer, a pay-as-you-go offer, which can be activated for one or both supplies exclusively in all post offices, on the web channel and on the ostepay and Banco osta apps, based on three pillars such as predictability (thanks to the Fixed Rate bill and the possibility of defining payment dates for all bills) transparency (there are no security deposits or exit penalties), and proximity to people and the environment, thanks to the approximately 12,000 ost Offices in the territory and to the supply of electricity from 100% talian renewable sources (certified through G Guarantees of Origin) CO2 emissions, related to the consumption of the

electricity and gas subscriptions since the launch of the offer

gas sold, are offset through the purchase of carbon credits that finance international projects aimed at reducing greenhouse gases n fact, oste taliane is committed to combating CO² emissions by supporting - with its partner Lifegate international projects aimed at reducing greenhouse gases and improving people's lives in different areas of the planet

he nergia offer was launched in the first quarter of 2023 on the mass market, and the first dedicated communication campaign was carried out Communication activities continued in the third quarter with an "always on" presence on digital channels and in post offices n eptember in particular, communication on the offer was relaunched with a significant increase on offline channels such as: V, print and radio, as well as digital channels and in the post office During 2023, a number of promotions were launched to support the new offer:

• " nergiaX oi', from July 2023 to January 2024;
• " orta una casa", from October and December 2023 dedicated respectively to all oste taliane Group employees and oste nergia customers with dedicated discounts on the first year of supply;
• "Yellowfriday", from 20th to 30th ovember 2023, which enhanced the " nergiax oi" promotion with the possibility of an additional discount on the first year of supply

Expanding the skills of the Poste Digital Assistant

With the entry into the energy market, the skills of oste's Digital Assistant, the artificial intelligence-based bot that manages and directs customer enquiries to customer service and supports operators, on almost all business areas, are growing further

n addition to providing general information on the electricity and gas offer, the oste Digital Assistant is able to check the activation status of the service, check bill payments and record gas self-readings For more complex enquiries or in the event of difficulties in understanding customer needs, the Digital Assistant directs customers to the Customer ervice operators, thus activating a rapid response, putting customer satisfaction at the centre n the first months since launch, the Digital Assistant has already addressed more than 100,000 requests with a customer satisfaction rate of about 9 out of 10 on the voice channel and 4 out of 5 on the chat channel

At a time when digitalisation is an increasingly integral part of the service experience delivery, a service model characterised also by the presence of artificial intelligence is intended to provide additional support to customers, faster and more effectively, so that they can independently solve simple needs and approach the use of new technological means such as interaction with A in natural language

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

The rewards of the Poste Energia offer

he oste nergia offer was honoured at Utility Day, organised by K ALY, as the ew ncomer on the talian energy market that is bringing the most technological innovation and new business models

his recognition emphasises a welcoming and non-aggressive approach to customers and a sales model based on a multi-channel and integrated strategy Further support for the result achieved is due to the planning of the advertising campaign on V, web and also mobile, which was awarded at the C Digital Awards 2023, in the category ' ntegrated Digital Campaigns - ervices of ublic nterest', awarded by ADC Group for the communication of the offer

Parcels and Distribution

he postal market is currently going through a phase of profound changes, largely attributable to digitalisation, which affects the volumes of letters and parcels in circulation in different ways he continuing structural decline in traditional mail volumes, replaced by digital forms of communication (e-substitution), is accompanied by an increase in the volume of parcels sent

Also in the first nine months of the year, the Group continued with the process of reorganising its transport, sorting, delivery activities and improving the customer experience, in line with the long-term objectives outlined in the trategic lan, such as increasing efficiency, flexibility and quality in order to seize the opportunities arising from the development of ecommerce

Poste Italiane and Deutsche Post DHL Group A strategic agreement in the international parcel market

n relation to the delivery area, the Group continued its growth strategy in the logistics sector relating to e-commerce purchases by signing a strategic agreement with Deutsche ost DHL Group

hrough this agreement, oste taliane and DHL will contribute their experience and strengths to the partnership hanks to oste taliane's extensive service access network, customers will be able to make urgent shipments through the global DHL xpress network by delivering them to any of oste taliane's collection points

n addition, DHL eCommerce, together with oste taliane, will install modern, sustainable and user-friendly automated lockers in strategic locations throughout taly Finally, DHL eCommerce will support oste taliane by delivering parcels through its uropean network and oste taliane will support DHL eCommerce by delivering international parcels in taly

unto oste, oste taliane's network for the collection of online purchases and the delivery of any returns, is part of this strategy t complements the about 12,800 ost Offices and consists of around 15,700 alternative collection points including tobacconists, bars, stationers, newsagents, shops and Ki oints, lockers and enabled Carrefour supermarkets he choice by customers to pick up or send a parcel at one of these points is what is now called "green behaviour", a more responsible and sustainable behaviour as the logistical process behind the use of the service helps to reduce CO² emissions his stems from the fact that oste taliane, instead of using numerous vehicles to deliver to customers' multiple domiciles, can concentrate collection at a single collection point, thus reducing the number of passages and vehicle movements of the company fleet

n addition, the agreement with DHL eCommerce will make it possible to increase the number of pick-up points dedicated to online purchases, the dispatch of pre-franked parcels and returns from the main e-commerce sites that adhere to the unto oste etwork thanks to the installation of automatic lockers available H24 7/7, nationwide

Additionally, in 2023 the Group continued its cooperation with Zalando, offering the possibility of using the unto oste network for returns management and outward shipments n continuity with previous years, the cegli u (You Choose) service remained active, providing flexibility in the delivery of a shipment to the recipient, allowing it to be managed and customised even when in transit

With reference, on the other hand, to the partnership with Amazon, renewed in 2021 for a further three years, oste taliane maintains the objective of satisfying the growing demand of customers throughout taly through an offer of innovative services for deliveries and returns n this regard, operators running an e-commerce site are enabled to activate the 'Reverse aperless' function of oste Delivery Business, which not only makes the return service easier for the e-shopper without the need to print the shipping label, but is also advantageous for the retailer as it allows them to increase their sales volume he new box- and label-free return service (boxless) was also released in 2023, which represents a further evolution of the offer and improvement of the eshopper experience n fact, the person making the return does not have to worry about anything: it is oste taliane that takes care of the preparation and printing of the waybill he ervice is currently available to Amazon customers, but will soon be released to all merchants through the oste Delivery Business offer

Good to Go

Fighting food waste oste taliane collaborates with the oo n 2023, the oo Good to Go app selected the Vidigulfo Logistics Centre of the talian ostal ervice's courier company, DA, to manage and prepare its new pantry boxes n compliance with the most modern environmental standards, the Logistics Centre in Vidigulfo, in the province of avia, is the place from where the app's pantry boxes leave to reach the homes of talians he pantry boxes are, in fact, purchased on the oo Good to Go app and then sent directly to the Centre's warehouse ubsequently, the products are taken from the shelves and placed in the

pantry boxes, which are delivered to the end consumers via the express courier service ' oste

app in the Vidigulfo Logistics Centre ( avia) Delivery Business' n the Logistics Centre itself there is a large product processing area, exclusively dedicated to oo Good to Go, which guarantees the safety of food products throughout the supply chain, with an average of around 1,000 pantry boxes handled every day, which are transferred to the new, highly automated hub in Landriano, where they are delivered nationwide in just 24 hours

The Vidigulfo logistics hub

As of April 2023, the new Logistics Centre in Vidigulfo ( avia) will be in operation With an area of 62,000 square metres and 74,000 pallet spaces, it is the largest of oste taliane's warehousing facilities he site handles the order of an important customer who has entrusted the Group with the entire activity of storage, order picking and distribution of its products for its shops located in Central- orthern taly

Too Good to Go

Founded in Denmark in 2015, today oo Good to Go is the leading anti-waste app in urope, which in early 2020 also started expansion into the United tates More specifically, oo Good o Go is the innovative service through which it is possible to order unsold food that is still fresh and of high quality from affiliated shops and restaurants, allowing everyone to make a concrete contribution to the fight against food waste

he oste taliane Group's unique assets for the development of ntegrated Logistics rojects, managed by the dedicated team, confirm the Group's willingness to increasingly support the fight against food waste

Sustainability of production processes adua sorting centre awarded in the Lean World Class

he sorting centre in adua was awarded as part of oste taliane's Lean World Class mail and parcel programme for the development of a lean culture and process optimisation he scores obtained during the audits enabled the centre, which has made sustainability and production efficiency its strong points, to reach the bronze goal

he adua sorting centre has been placed on the highest podium of the Lean certification for having been able to develop the synergy between production efficiency, sustainability and safety in a particularly virtuous way, through a gradual and continuous improvement fuelled also by the direct suggestions of those working on the front line n particular, the lean path involves process efficiency, as well as a focus on safety and quality, which requires bottomup involvement, as the operational staff is directly involved in the change and operational activities

As part of the offerings for consumer customers, in continuity with previous years, the company kept the following shipping services active:

• Poste Delivery Web, the service that allows to quickly and easily send online parcels of up to 30 kg in taly and abroad using the service he customer, after registering and paying for the shipment via the website or app, can choose to take the shipment to the ost Office or the most convenient unto oste showing the operator the waybill - or the 2D Code in the case of domestic shipments - generated during the purchase, or to book home collection and deliver the package directly to a courier without having to print the waybill n this regard, from 2021, it is possible to choose instant delivery to send urgent documents and parcels, even in the evening or at weekends, with different delivery options: nstant (within 120 minutes), oday (same day), omorrow (next day) n addition, for direct mailings in taly, the customer can avoid printing the shipping label, saving time and paper With ' aperless Collection', simply hand the parcel over to the courier or show the 2D code received by e-mail to the counter staff at the ost Office or the operator at the unto oste (network of affiliated tobacconists) hey will be responsible for printing the waybill
• Poste Deliverybox Express, the service with a box included through which it is possible to ship at the same time as the purchase, or within one year at no extra cost directly from a ost Office or from one of the tobacconists enabled by the unto oste network he service provides double delivery attempt, but if the addressee is absent even on the second attempt, they may collect the parcel within 10 days at the ost Office, without paying a penalty Alternatively, it is possible to extend the delivery service to urope and the United tates using " oste Deliverybox nternational xpress", available in three formats and equipped with the basic customs declaration to be completed
• Poste Delivery Now, the set of value-added services offered by the Group in collaboration with Milkman that enables e-commerce operators to offer their customers a simple and interactive shopping experience, thanks to the possibility of choosing the exact moment at which to receive the order he offer is available in two options: the cheduled Delivery mode allows flexible scheduling of delivery, choosing the day and time slot - even in the evening or on aturdays - directly on the site where the purchase is made; with the ame Day formula, on the other hand, it is possible to receive the product ordered online on the same day of purchase, within an afternoon or evening time slot Moreover, the customer, after making payment on the website and selecting the desired delivery type, can follow the shipment in real time through an advanced tracking system and, if necessary, interact with the courier
• Poste Delivery Express International, the service that allows international shipments, available both at post offices and from the ost Office App or on the website, provides urgent shipments up to 30 Kg, two delivery attempts and with

approximate times of two working days for shipments in the U, 2-3 days in non- U countries, 3-4 days for the rest of the world, plus the day of shipment and excluding customs time he service is also available online via the oste Delivery Web portal or via the ost Office App After preparing the parcel with the waybill and customs documentation (for non- U countries only), you can request free home collection of the consignment (only via oste Delivery Web), or alternatively it can be delivered at authorised post offices DA oste taliane's 2ruot xpress service allows motorbikes and bicycles to be transported throughout taly and to Barcelona in pain, with special metal cages and

Innovation for workers in the delivery circuit oste taliane renews the wardrobe of its approximately 29,000 letter carriers and provides newgeneration DA

dedicated packaging for bikes

During 2023, oste taliane renewed the company uniforms of approximately 29,000 employees working as letter carriers pecifically, the garments are characterised by a new design that combines functionality and aesthetics, recycled fabrics and versatility, capable of protecting against the cold in winter and highly breathable for warmer periods, characterised by the classic colours of oste taliane, yellow and blue, to which grey is also added n detail, the cargo-style trousers with side pockets are made of technical and breathable materials, lined with K-Flex fabric he long and short-sleeved polo shirts are made from fibres that are highly protective against UV radiation he new 3-in-1 winter jacket is equipped with a self-supporting jacket that can be adapted to any context, class 2 for high visibility in accordance with Uni n so 20471:2017, class 4 for waterproofness and breathability

n addition, the new uniforms are complemented by other equipment, such as newgeneration DA that allow services such as paying bills or sending registered mail to the home hrough the use of such devices, the delivery of parcels is facilitated not only by the function of the recipient's electronic signature directly on the DA, but also by the possibility of contacting the recipient of parcels by telephone during delivery, so that the delivery can be managed on time he DA also enables efficient value-added operations such as cash-on-delivery, delivery by appointment and home collection of registered mail

n addition, the new devices are able to handle the payment of major bills and MAVs, cashless, via the oste ay ' ay with code' functionality and with the new oft O payment type in contactless mode n addition, it is possible to manage telephone and oste ay top-ups exclusively through electronic payments in a safer and faster way

nnovation and digitalisation of processes

oste taliane has undertaken a digitalisation journey that has involved both the Group's offering and company processes, transforming the distribution model from an omnichannel perspective, in order to guarantee the provision of services in an agile manner and aligned with customer needs he implementation of the omnichannel strategy involved all business levels and, through the extension of the physical footprint and the

~ 2 billion

will be invested in the Group's digital transformation over 2021-2024

strengthening of digital channels, it was possible to invest in the Group's digital transformation hrough the use of digital platforms that provide new and personalised products and services by exploiting the opportunities deriving from technological innovation, oste taliane has opened new communication channels capable of offering its customers a seamless experience in line with their needs

Inauguration of UP Full Digital in Florence

On 8 ovember 2023, the Florence ost Office was opened as a pilot project of U Full Digital n particular, the activities involved the definition of criteria, the analysis and identification of the post office, a communication campaign and the launch of the U itself in an experimental phase

he Florence ost Office is the first in taly where citizens can make use of all ost Office services by booking access through the ' earch office and book' function, available on the poste it website and on the oste taliane, Banco osta and oste ay apps n addition, the 'Booking Only' trial was launched, a new access model in post offices that aims to reduce waiting times and improve the efficiency of the service through booking via app or oste's website

he objective of ensuring better efficiency in customer management is flanked by that of contributing to digital education, thanks to the figure of a reception operator who, already since August in the Florence office, has been informing and supporting customers on the use of the Apps and the oste taliane website and for any specific needs Furthermore, the focus on the most fragile groups is confirmed, for whom priority service is always guaranteed

Finally, a further benefit of the 'Booking Only' project will be to significantly reduce the issuance of paper (physical tickets) in line with oste taliane's sustainability plan, which aims to reduce to zero the potential environmental impact generated by its activities

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Digital innovation in the Company mployee training

n the area of nformation & Communication echnology, annual training plans were launched to develop, update and strengthen the skills required for the operation, management, development and security of C systems An in-house catalogue of around 4,800 titles is available for this highly specialised context

Continuing education plans continue as part of the partnerships with Microsoft Corporation on Azure topics (Cloud Computing, Data Analytics and latforms) and with Amazon Web ervices nc with the delivery of multiple specialised courses that delve into thematic areas such as: common AW products, services and solutions, security engineering, advanced architecting, technical essentials

At a transversal level, with the aim of automating and improving business processes, an Methodology training plan is in place, aimed at developing skills to support the adoption of Methodologies and Best ractices (e g roject Management, Lean ix igma, DevOps and crum and Design hinking) Lastly, a specific initiative was launched dedicated to the resources operating in the newly established Data Office structure in the D O area on Data cience & Analytics topics with the aim of exploring the essential elements of Data Literacy, raising awareness of the potential of introducing solutions that enhance Big Data & Analytics for business process innovation

n the Customer Operations sector, particularly in the area of Customer Assistance, training initiatives were launched dedicated to specific targets such as utor rainers, Operations utors and Financial ervices Operators focused on the evolution of the assistance model towards a greater commercial proposition and an integrated and omnichannel customer experience t is also worth mentioning the launch of a specific training project on Artificial ntelligence and Conversational Design dedicated to resources working in the Customer ervice Models structure

Poste Italiane consolidates its role as a platform company he winning strategy of the latform Company

he omnichannel strategy has transformed oste taliane into a latform Company, already resilient to the pandemic and the financial upheavals produced by the war in Ukraine, and prepared to manage any new critical issues arising from the current context n the fourth quarter of 2023, the Company achieved a 9 4% year-on-year increase in operating profit, reaching at 2 62 billion a level more than double that of 2017

mportant initiatives such as the olis project, D, the launch of fibre connection services and the entry into the energy market show how oste taliane is a facilitator of the country's technological transformation

oste taliane considers human capital a resource of central importance for innovation For this reason, in addition to continuing its policy of open innovation and inorganic growth with the acquisition or majority shareholding in some of the most innovative companies and start-ups, it also continues its "reshoring" policy, hiring young resources, emigrated abroad n this way, the company contributes to the digitalisation and modernisation of the country and combines the virtualisation of services with a constant and qualified presence on the territory

n this scenario, by stimulating the growth of the productive fabric and favouring the simplification of the ublic Administration, oste taliane has positioned itself as the Distribution latform of Choice of the talian ystem to support citizens in their daily life needs

he Distribution latform of Choice, in order to connect citizens, businesses and the ublic Administration and meet their needs, has the task of addressing the emerging needs of the Country ystem through a ech Ops Liquid ngine capable of enabling business evolution, articulated in four areas

With the aim of improving and speeding up services and simplifying internal operations and customer interaction, the company constantly strives to implement lean and innovative processes by automating most of its large-scale operational processes

n particular, the Customer Operations division, which deals with the processing of service activation files and their billing, was reorganised in 2023 n fact, 60 processes were mapped and digitalised to streamline and speed up back office activities and eliminate paper he digitalisation of oste taliane's processes and the elimination of paper are the key factors for a transformation that can support a new digital economy

o make a radical transformation possible in addition to strategic partnerships capable of accelerating the digitalisation of the country, the Company believes it is necessary to trigger a cultural change that involves all people in a series of aspects:

• culture: it is essential to establish a generative culture in which people are strongly oriented to customers and continuous improvement;
• collaboration: adequate collaboration tools allow the creation of internal communities that progress independently and generate value for the entire corporate ecosystem;
• improvement: continuous improvement must be part of the D A of all employees in order to anticipate customer needs;
• agile: the adoption of agile methods, not only on the production chain, makes it possible to provide a rapid response to the changes that a highly digital world imposes from the outside;
• skills: it is necessary to strengthen internal skills through the inclusion of specialised resources (e g architects, software engineers, etc ) in order to internalise skills and create strategic business platforms in-house, through the establishment of specialised factories also located throughout the territory

n addition, from 2019 to 2023, the oste taliane Group has been attentive to more than 2,200 national and international

~ 2 thousand start-ups

from the 2019-2023 scouting on the world market were analysed by the Group

start-ups, from scouting on the global market, interaction with supply chain operators such as Venture Capital Funds/accelerators/incubators, and participation in national and international Open nnovation rogrammes with which oste taliane has signed collaboration agreements Among the start-ups mentioned above, over 450 were deemed to be of potential interest for the Business Units and around 250 projects were evaluated for potential synergies/collaborations More than 40 companies have emerged from this rigorous process and have been the subject of active collaboration, some with acquisitions and equity participation such as calapay, ennder, ink and Milkman

Renewing with startups oste taliane acts for innovation

oste taliane underlines its commitment to innovation by participating in the seventh edition of the O ALY programme promoted by the L Consortium he Company's objective is to continue the path of innovation and digital transformation envisaged in the trategic lan, promoting the culture of open innovation and strengthening its leading role in digital evolution and innovation in taly n particular, during the O ALY programme, oste taliane collaborated with Clearbox and B4 ech

B4Tech

nnovative start-up of B4 Grouprecently completed the ' arcel Mapping' project with oste taliane, as part of the O ALY programme of L nnovation Hub he initiative represents a significant step in the supply chain world, responding to oste taliane's need to trace and map critical issues in the distribution process in detail hanks to the implementation of two innovative tracking devices, mart Label and G Box, B4 ech's solution offers real-time position control of the shipment as it passes through the entire distribution chain hese o devices transmit signals at regular intervals during transport, providing crucial data to improve operational efficiency he use of B4 ech's Augmented Analytics platform made it possible to further process and enrich the value of the data coming from these devices, generating a series of valuable insights that improve the traceability and transparency of the distribution process, optimising the management of anomalies in the entire logistics ecosystem

Clearbox AI

he partnership between oste taliane and Clearbox A , initiated as part of L nnovation Hub's Open taly programme, opened the door to innovation through the creation of a sandbox of high-quality synthetic data ynthetic data are created by A algorithms on the basis of real data, to enrich and protect them, thus enabling analysis and testing in a secure environment he adoption of Clearbox A 's generative A technology has enabled innovative processes to be set in motion, enhancing the company's information assets hanks to the ' ynthetic Data andbox' project, it was possible to understand and investigate the potential for using synthetic data in oste taliane, while guaranteeing data protection and privacy

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

The ESG advisory model A Guided Advisory latform

hrough the creation of an online platform, oste taliane offers an advisory model focused on sustainable investments he Guided Advisory latform aims to supplement the client's existing information set with information on the G ynthesis rofile and the score on each individual G pillar

his model focuses on a specific product catalogue, including financial criteria and G preferences of the client, e g product and client knowledge, advice and suitability, and disclosure to the client ach product in the catalogue is associated with an G score based on two levels, an overall pillar score and a category score, also providing a representation of G characteristics n the profiling process, the client's level of interest and preferences on the G topic is explored, based on which a minimum portfolio score is associated with the individual pillar

hanks to the introduction of specific safeguards that verify the minimum portfolio score of each pillar, according to the client preferences gathered from the MiF D Questionnaire, advice is given in relation to financial drivers he control is in addition to those of the current adequacy model With reference, however, to disclosure to the customer, the recommendation report is enriched with indications on the consistency of the proposed products with respect to personal G preferences and with the changes in terms of the single pillar score, between the pre- and post-recommendation portfolio Within the information sheet of each product, the Consulting latform provides information in the G field, and in the "product sheet" item, the scores relating to each driver are broken down ( , , G)

Also in 2023, the optimisation of purchasing processes in a one-click-to-buy logic and the expansion of the range of products and services that can be purchased directly online contributed to strengthening the Group's digital sales channel n particular, the strengthening of digital channels continued in 2023 with a view to guaranteeing a fluid and omnichannel experience for its customers based on three main drivers of evolution: the introduction of new functionalities on digital channels, the enhancement of the catalogue of offerings on digital channels, and the optimisation of the osteBusiness infrastructure

Moreover, oste taliane has embarked on a significant digital transformation process, taking into account the main trends of technological change influencing the market in which it operates and focusing on the following elements:

• enhancing the ost Office network, integrating it with B2B2C partner networks, in synergy with the strengthening of digital channels;
• optimisation of digital solutions, favouring the inclusion and development of the digital economy, with the aim of satisfying the different needs of customers of all age groups;
• expanding the addressable market to smart customers with data connectivity needs;
• consolidating the Company's role as a key interlocutor for the ublic Administration

The Company aims to connect Italian SMEs, Public Administration and citizens also through the strengthening of partnerships in order to provide innovative digital services.

with

Microsoft

Poste Italiane Microsoft and oste taliane are Digital artners to improve business productivity, simplify collaboration, reach recipients, protect and certify data and documents

Business customers are offered a range of packages that consider various specific needs; the Microsoft tandard package can be supplemented with oste Delivery Business, the service aimed at companies that send documents or goods to private and business recipients in taly, with delivery within two working days he service can also be combined with " alva e-invia Web", which offers an integrated system of web-based services provided by ostel to simplify the sending of mail o meet the need for the ature of documents prepared with the Microsoft package, it is possible to proceed with the activation of the option the Remote Digital ignature of oste taliane to securely sign electronic documents with legal value Finally, DataCerta Digitale is ostel's service that allows the certification of the date and time of production of any document, which is legally valid with the certainty of the date guaranteed by the CM ( lectronic ostal Certification Mark) issued by oste taliane

Poste Italiane participates in EU-funded projects on digital identity and payments and eXtended Reality solutions

oste taliane participates in the DC4EU project which aims to create and test a scalable and interoperable system among Member tates and takeholders for the use of the new uropean digital identity ( Uropean Digital dentity Wallet, UD W) o this end, several use cases will be developed and tested, involving both the public and private sectors, in different contexts based on an architecture and framework that will have to be aligned with the ARF 2 0 (Architecture and Reference Framework for uropean Digital dentity) scheme that is currently being published oste taliane is participating in the project by providing its technical and organisational expertise to contribute to the activities of adopting a digital identity solution, analysing and designing the ecosystem for the wallet that will contain the identities, verifying consistency and alignment with the ARF and all related issues emerging from the work of the U Commissions

oste taliane is actively involved in the NOBID project whose objective is to test one of the main use cases defined by the uropean Commission in the area of payments, which concerns the authorisation of payments for products and services by the user/wallet owner o support the payment use case and the broader ambitions of cross-border participation of several member states, the consortium includes national agencies from orway, Denmark, taly, Latvia and celand, and also tests the payment use case in wallets from Germany he OB D project includes public and private parties, attribute/credential and attestation providers, as well as U citizens and residents who will test the wallet functionalities oste taliane participates in the project by providing its technical and organisational expertise to ensure the 'on-boarding' of users in the Digital Wallet system

oste taliane participates in the SERMAS project, which focuses on the implementation and management of new eXtended Reality systems by providing its technical expertise in the development of methodologies, coordinating the implementation activities of case studies, and participating in the testing and validation of the implemented solutions wo of the three case studies envisaged in the project will be implemented by oste taliane to test XR solutions in assistance services hrough tactile and vocal interactions, the Receptionist Agent will welcome visitors at oste taliane's premises with the aim of providing information and physical access services to the buildings nstead, a ost Office Agent with user-friendly communication capabilities will be active in post offices to provide information and offer services to users n this context, participation in the project is of interest to oste taliane to test new models of human-machine interaction

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

7.16 SUSTAINABLE FINANCE MAIN RELATED TYPES OF CAPITAL

Main types of capital	Objectives	Indicator (KPI)	Target	Baseline	ation status 2023	Outcome
	Reduce the Group's total portfolio emissions in line with the Paris Climate Agreement targets and contribute to limiting global warming to 1.5ºC	NettCO2e	Net zero by 2050	2023	New
	Development of sustainable finance initiatives dedicated to internal stakeholders	No. of initiatives	4 by 2024	2021	5
	Development of a dedicated offer for people who would have to disinvest part of their invested capital in the event of a serious illness	Expansion of the offer on the main flaqship products of both class l and multi-class	Expansion of offerings by 2024	2022	Launched 4 products Tincluding Serious Illness cover
	Implementation of a new insurance check-up to tailor proposed cover to each client on by household, and not just by individual, to identify protection needs more precisely, and thus reduce the level of underinsurance of the Italian population	No. of insurance check- ups in production	1 by 2023	2022	Start of production of the dedicated household insurance check-up
Financial	Creation of a new model of access to and use of insurance products, with a main focus on personal coverage, to increase awareness and diffusion among the Italian population, in two phases: Rationalisation and simplification of offerings, moving beyond the traditional "coverage" structure towards a "needs" structure Development of an advisory model that guides the client to the most suitable health facilities for the specific need and generally facilitates the "use" of the policy (i.e. claims management)	Restyling of Persona line by Poste Vivere Protetti New advisory and benefit · management process	Restyling of Persona line by Poste Vivere Protetti by 2023 New advisory and benefit management process by 2023	2022	Restyling of the Poste Vivere Protetti person line, simplifying the structure of the offer and orienting it towards a needs- based logic New claims consultancy model launched in October	DECENT WORK AND O ECONOMIC GROWTH PARTNERSHIP FOR THE GOALS
	Gradual inclusion of an ESG component in Poste Vita investment products	% of Poste Vita products with ESG elements	100% by 2024	2020	79%
	Integrate into at least one fund open to retail a strategy - also in competition with others - aimed at controlling and containing carbon emissions	No. of funds	1 by 2024	2022	30%
	Increase ESG indicators against which BancoPosta Fondi SGR's investment portfolios can be monitored	Define a proprietary synthetic sustainability indicator	Definition of the indicator by 2024	2022	30%
	Development of a strategy concept integrating sustainability objectives (pursuant to Art. 9)	No. of strategies with a sustainability objective	1 by 2024	2022	30%
	Integration of Poste Vivere Protetti's Personal Line offer with coverage dedicated to specific targets e.g. caregivers	Dedicated coverage for specific targets e.g. caregivers	Coverage launch by 2024	2023	New
	Carrying out a feasibility study on the possibility of extending the target group of insurable persons for health coverage to persons normally excluded, through greater sophistication of the health declaration required at the time of underwriting	Carrying out a feasibility study to expand the target group of people insurable for health coverage	Implementation of the study by 2024	2023	New

ntegration of G factors into investment policies

he consideration of G factors and the dissemination of sustainable finance principles now represent a consolidated strategic axis for institutional investors, which they are called upon to embrace by weighing the social and environmental impact of their activities

MAIN RELATED TYPES OF CAPITAL

For several years now, the oste taliane Group has adopted a responsible investment approach that accompanies Banco osta Fondi GR and oste Vita in their investment activities n fact, the Group applies the principles of sustainability in all its areas of operation, including the financial sector, firmly believing that the asset management and insurance sectors, through the integration of G factors into investment decision-making processes, can contribute to the generation of long-term sustainable value, helping to protect society, foster innovation and support economic growth

Poste Italiane believes that the integration of ESG risks and opportunities in the management of investment portfolios can provide a concrete response to the social and environmental needs expressed by society, positively influencing the entire Country System

Supervisory expectations on climate and environment al risks

he Bank of taly, consistent with similar initiatives by the CB and other national supervisory authorities, developed in 2022 a set of supervisory expectations on the incorporation of climate and environmental risks into business strategies, governance, control and risk management systems, and market disclosures by supervised intermediaries he Bank of taly followed this up with a thematic survey conducted on a sample of non-banking financial intermediaries n view of the findings, all intermediaries were asked to prepare an 'Action lan' by 31 March 2023, identifying the actions planned to address the gaps identified and ensure the alignment of business practices with supervisory expectations, specifying the priorities and timeframes required to complete the various initiatives

n response to the expectations expressed by the Bank of taly, Banco osta Fondi GR has therefore defined its Action lan on the integration of climate and environmental risks into business processes he lan was developed on the basis of the AMC existing situation at the beginning of 2023 and a gap analysis with respect to evidence from the survey conducted by the Bank of taly his lan, approved by the Board of Directors of Banco osta Fondi GR and subject to the assessment of the Board of tatutory Auditors, is divided into five main development drivers: governance and organisational structure, corporate strategy, risk management system, reporting model and information flows, and remuneration policy he lan has a three-year horizon 2023 - 2025 he individual elements of the lan, contained in each driver, are indicated through three levels of priority and associated with an indicative time horizon, which will be reviewed periodically to assess the feasibility of the Action lan, also in accordance with changes in the context and regulations

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he definition of a holistic approach for the integration of sustainability considerations into the Group's investment

activities is part of a path started in 2019 through the development of the strategies and the general responsible investment approach adopted by the Group's financial companies, Banco osta Fondi GR and oste Vita he first step along this path was the signing of the rinciples for Responsible nvestment ( R ) by both companies hese are six principles, adhered to by an extensive international network of investors, which promote the integration of G issues and the dissemination of responsible investment practices within their investments and portfolio companies, proposing a long-term vision in the interests of the signatories, the economy, the environment and society Adherence to the R not only entails the integration of G criteria, but also results in a commitment by signatories to regularly report on their progress in implementing the responsible investment approach his step is therefore consistent not only with the Group's perspective that the inclusion of G issues in investment processes is

Salone del Risparmio (Savings Exhibition)

he C O of Banco osta Fondi GR, tefano Giuliani, participated in the alone del Risparmio 2023, focusing on investors' green choices and the need to fully understand customers' expectations in order to guide them on sustainability issues

necessary to pursue long-term sustainable performance and reduce portfolio risk, but also with the principles of transparency and integrity in conduct After a one-year suspension to allow for a review of its structure, the R questionnaire became active again in 2023 and both Banco osta Fondi GR and oste Vita completed it in the planned reporting window

Among the aforementioned R principles, one of them includes the commitment to incorporate G issues in shareholder policies and practices; oste taliane considers the action of dialogue with the issuers in which Group companies choose to invest, and their involvement in initiatives dedicated to the management of sustainability aspects, a fundamental tool for the dissemination of sustainable development models and the achievement of the sustainability goals that the Group considers a priority n line with this belief, in 2023, Banco osta Fondi GR and oste Vita renewed their commitment to engagement as a pillar of G integration strategies in investment processes, participating in collaborative initiatives and dialogue with the financial sector, institutions and associations category, consistently with the Guidelines that regulate the exercise of voting rights and engagement activities by the two Companies hese Guidelines set out the specific methods and timing for Banco osta Fondi GR and oste Vita to consider engagement actions in the event of investments in companies operating in sectors deemed sensitive to environmental issues - such as climate change - or social issues such as human rights - or governance issues; at the same time, following a logic of prioritisation of the most significant issuers, the Guidelines also define the level of engagement priority for specific issuers

Poste Italiane believes that collaboration with other stakeholders is essential to foster the achievement of concrete results, in a stewardship logic. Pooling resources with other investors will allow for greater influence on the decision-making and actions of portfolio companies and will bring superior results in the progress towards sustainable development

ngagement activities aim to encourage issuers to improve the way they integrate environmental and social dimensions into their business operations and increase levels of transparency in reporting For these purposes, therefore, engagement activities are monitored and assessed periodically and, if these have not led to tangible improvements over time, Banco osta Fondi GR and oste Vita consider resorting to further actions according to a logic of escalation, as governed by the Guidelines

Poste Italiane Group Report on Operations at 31 December 2023 pecifically, oste Vita and Banco osta Fondi GR continued to participate in social initiatives such as: Access to Medicine

nitiative, committed to raising pharmaceutical industry awareness to expand access to essential health products in low- and middleincome countries, Access to utrition nitiative (A ), Workforce Disclosure nitiative (WD ) At the same time, collaborations were confirmed with the climate change networks Land Use & Climate, of the international Ceres network, and Climate Action 100+, the investor network that engages major carbon emitters globally to push them to implement concrete actions to reduce harmful

Net Insurance

Following the corporate transactions finalised in 2023, the update of oste Vita's responsible investment policies and guidelines provided for the inclusion of et nsurance pA and et nsurance Life pA in the scope of application

emissions Banco osta Fondi GR also adheres to the ' cience Based arget' and ' on-Disclosure' campaigns promoted by CD (Carbon Disclosure roject) and in 2023 began the process of joining GCC ( nstitutional nvestors Group on Climate Change), finalised in early 2024

Furthermore, as in past years, dialogue activities on G issues were carried out with listed companies as part of the " ngagement" Working Group coordinated by the Forum for ustainable Finance on the occasion of the uronext ustainability Week of the talian tock xchange n particular, meetings were held with two talian companies in the utility sector in which topics related to energy transition, such as the alignment of activities to the U taxonomy and sustainable debt, and related social issues were discussed

Banco osta Fondi GR has been publishing since 2022 an annual reporting on the application of the guideline on the exercise of voting rights and engagement activities, which, among other things, lists the portfolio companies for which voting rights were exercised during the previous year

On the other hand, with regard to voting activities, Banco osta Fondi GR and oste Vita160F ¹⁶¹ take into account their own Guidelines aimed at describing the criteria and procedures for exercising voting rights, which also define the assessments carried out by the Companies in exercising their right to vote and in determining the same decisions

he mainstay of Banco osta Fondi GR and oste Vita's responsible investment approaches is the system of policies and guidelines adopted by the two companies to define the G integration strategy in their investment processes, consisting of the Responsible nvestment olicy, the Guideline for nvesting in ensitive ectors and the Guideline on the exercise of voting rights and engagement activities his system is subject to periodic updates (the last one took place in the last months of 2023) aimed at integrating internal growth elements in terms of sustainability governance, corporate strategy, investment strategy and product strategy With regard to this last point, the FDR encouraged new rules and criteria for assessing the sustainability of investments, with the aim of ensuring greater transparency and accountability in financial practices he revision of the internal rules therefore entailed the need to take specific measures to monitor and assess compliance with these rules with respect to the qualification of the underlying investments in financial products n addition, oste Vita and Banco osta Fondi GR consider it essential to monitor the external environment, represented by regulations, the market and international standards, in order to intercept new market trends and requests from regulators, investors and standard-setters

he Responsible nvestment olicy is the document that describes and formalises the commitment to the integration of issues related to the individual G aspects (environmental, social and governance) into the investment processes on the basis of the reference principles and guidelines, activities, managed portfolios and asset classes, roles and instruments

¹⁶¹ During the financial year, oste Vita did not exercise its voting rights Direct exposure to equities is residual, with equities in the company's financial statements representing about 0 3% of total assets

envisaged by the defined strategy, with the aim of making a positive contribution to the sustainability challenges his strategy is based on taking into account the sustainability risks associated with investing and assessing issuers and financial instruments also according to environmental, social and governance criteria With this in mind, the investment policies provide for exclusion criteria that limit the investable universe of Banco osta Fondi GR and oste Vita with respect to issuers directly involved in the production of weapons banned by U Conventions that violate fundamental humanitarian principles

n addition to the definition of exclusion lists, the Group provides specific sector-specific approaches and guidelines for those activities or business conducts that present a significant inherent G risk o this end, Banco osta Fondi GR and oste Vita's Guideline for nvesting in ensitive ectors has been adopted and updated, which defines the criteria and processes for identifying, assessing and monitoring exposure to issuers involved in fossil fuels, coal, animal testing and social and environmental controversies Also in the area of sectoral assessments, oste Vita recently introduced a watchlist to monitor the exposure of investments in issuers belonging to the tobacco, alcohol and gambling sectors

Banco osta Fondi GR and oste Vita consider the rincipal Adverse mpacts ( A s) on sustainability factors caused by investment decisions, adopting Regulation ( U) 2019/2088 and the subsequent Delegated Regulation ( U) 2022/1288 as the framework for identifying and measuring these impacts During 2023, the companies developed and formalised an initial approach for monitoring and managing A s, both at the entity and individual investment product level, in accordance with regulatory requirements and existing internal regulations his activity makes it possible to identify and measure the positive/negative impact on the sustainability challenges, enabling the identification of any negative impact mitigation actions to be implemented n particular, for example, with reference to the challenges linked to climate change, oste taliane measures its possible positive contribution to sustainability challenges by monitoring the performance of A indicators through metrics such as 'Carbon footprint' and ' nvestments made in companies that do not adopt initiatives to reduce carbon emissions'; with regard, on the other hand, to sustainability challenges linked to the social sphere (e g support for human rights), A s such as 'Violations of the principles of the U Global Compact and the Organisation for conomic Co-operation and Development (O CD) Guidelines for Multinational nterprises' and 'Gender Diversity in Council' are tracked nformation on the criteria for monitoring and managing A s is available in Banco osta Fondi GR's Responsible nvestment olicy and oste Vita's Guideline on A s, updated during 2023, as well as in the respective tatements on the Main egative ffects of nvestment Decisions, to which reference should be made for further references and details on the effects of these measurements and the actions implemented

he correct implementation of the system of policies described above is guaranteed by their dissemination and communication within the organisation, in the belief that everyone's awareness is necessary to fully incorporate G considerations into business activities At the same time, the clear allocation of roles and responsibilities enables the establishment of governance that favours smooth processes and the creation of focal points within companies for the management of G integration n this way, with the support of central coordination, consistency of approaches is ensured with the broader sustainability strategy and objectives of the oste taliane Group n order to strengthen the sharing of G integration in the investment area, as well as to bring to attention some general observations on regulatory and market developments, induction sessions were organised in 2023 with the Boards of Directors of oste Vita and Banco osta Fondi GR

Banco osta Fondi GR and oste Vita promote the integration of G criteria within them, including through the adoption of an incentive system that includes, among the main performance drivers, parameters related to the achievement of the oste taliane Group's strategic guidelines on G issues and, in particular, the specific objectives defined in the area of sustainable finance

Principal Adverse Impacts (PAIs)

Banco osta Fondi GR and oste Vita published on 30 June 2023 their first ' tatement on the principal adverse impacts of investment decisions on sustainability factors' Within this tatement, also known as the A tatement, evidence is provided of the performance of the A indicators, as identified by Delegated Regulation ( U) 2022/1288, on the companies' overall portfolios for the year 2022, as well as the main actions planned by each company to limit the negative impacts on sustainability challenges related to its investments

While implementing a monitoring process for each A indicator, Banco osta Fondi GR and oste Vita have identified certain impacts as priorities due to their interconnectedness with the principles set out in the Responsible nvestment olicy and with the sectors identified in the Guidelines for investing in sensitive sectors n particular, these are impacts resulting from the exposure of investment portfolios to the fossil fuel sector, to the controversial arms sector or to issuers that do not comply with the principles of the Global Compact or the O CD Guidelines for Multinational nterprises

G monitoring

n line with their Responsible nvestment olicies, Banco osta Fondi GR and oste Vita make use of a timely and structured process for monitoring the investments in the portfolio, aimed at respecting the strategies applied, containing

the risks associated with sustainability issues and evaluating opportunities to carry out engagement initiatives with the issuers in the portfolio hus, monitoring activities include the verification of exclusion criteria and exposures to sensitive sectors, the analysis of G profiles of portfolios, and the assessment of negative impacts generated on sustainability factors hrough the principles and processes adopted, the two Group companies can therefore monitor both the overall G profile of their investments as well as specific sustainability issues of a systemic nature (such as climate change and human rights), using in

Information flows

Banco osta Fondi GR and oste Vita have integrated portfolio analysis tools into their information systems for the integration of G data and the continuous monitoring of G K s, including A indicators

both cases assessments prepared by specialised and internationally recognised info-providers o this end, the portfolios of Banco osta Fondi GR and oste Vita are periodically analysed on an G level through an external service provider specialised in social and environmental issues to evaluate the degree of social responsibility and the carbon footprint, with the aim of mitigating any emerging risks he info-provider's evaluations are carried out in accordance with internationally recognised and disseminated standards, guidelines and norms by organisations such as the U , LO and O CD

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Monitoring the ESG profiles of the investment portfolio

For the oste Vita Group¹⁶² , the weighted average G score for the investment portfolio in 2023 was 54/100 for corporate issuers and 77/100 for country issuers he results obtained are higher than the G performance of the reference benchmarks, i hares M C World F equal to 43/100 for corporate investments (equity and corporate bonds) and Xtrackers Global Government Bond equal to 65/100 for government investments, confirming the high quality of the Group's investments in terms of sustainability With respect to the CF (Carbon Footprint nergy ransition) analysis, the weighted average carbon footprint of its portfolio was 7,342,187 tCO2eq, with an nergy ransition score of 57/100 for corporate issuers he comparison with the shares M C World F benchmark is unfavourable in terms of carbon footprint (equal to 6,213,978 tCO2eq for the F), while the nergy ransition of oste Vita investments is higher than that of the index (score 47/100) Lastly, the Carbon Footprint of government investments was equal to 356,862,393 tCO2eq and the nergy ransition score was 73/100

With reference to Banco osta Fondi GR, the weighted average G score of the portfolios relating to the direct and indirect management of the AMC was found to be equal to 54/100 for corporate issuers and 76/100 for country issuers Banco osta Fondi GR also scored higher than the G performance of its reference benchmarks, i hares M C World F at 43/100 for corporate investments (equity + corporate bonds) and Xtrackers Global Government Bond at 65/100 for government investments his result confirms, once again, the high level of quality of the Group's investments in the area of sustainability Compared to the CF analysis, the weighted average carbon footprint of direct and indirect investments in companies of the AMC was equal to 5,077,339 tCO2eq, with an nergy ransition score of 57/100 for issuing companies Both indicators performed better than the shares M C World F benchmark (6,213,978 tCO2eq, nergy ransition score 47/100) he Carbon Footprint of government investments, however, is equal to 504,143,360 tCO2eq and the nergy ransition score is 72/100

16F 162

¹⁶² The Poste Vita Group refers to the portfolio under management delegation (separate management schemes and assets) of Poste Vita and Poste Assicura.

Offering investment products with environmental and social benefit

he focus on sustainability, G risk management and reporting on the positive and negative impacts generated through investments is crucial in building portfolios sensitive to environmental and social issues oday, the investment product catalogue of Group companies is based on the integration of G criteria into their strategy; the periodic review and

updating of the system of policies and guidelines described above also allows additional strategies to be added to the integration approaches common to all portfolios established by the Group During 2023, oste taliane therefore continued its efforts to expand its proposal of financial products that promote environmental and/or social characteristics, with a view to channelling an ever-increasing amount of capital in favour of sustainable development and meeting the demands of savers and investors interested in the creation of positive social-environmental value through the investment products they subscribe to he offer of this type of investment solutions is based on the criteria for the classification of financial products as defined by Regulation ( U)

"Poste Vita Valore Solidità" Separately Managed Account

n 2023, oste Vita launched a new eparately Managed Account, which was designed to be classified under Article 8 FDR as a product that promotes environmental and/or social characteristics

2019/2088 ( FDR Regulation), in particular with reference to so-called Article 8 FDR products he extension of this offer stems from both the launch of new products and the review of the investment strategies applied, with the introduction of additional G integration strategies, and represents a commitment shared by both Banco osta Fondi GR and oste Vita

Thematic Funds

Between 2021 and 2022, Banco osta Fondi GR offered thematic products focused on the environment for placement, with the launch of Banco osta Focus Ambiente 2027, which was followed by Banco osta Focus Ambiente March 2028 he funds, managed under delegation by Anima GR, invest primarily in third-party funds classified as products that promote environmental and/or social characteristics or that pursue a sustainability objective (within the meaning of the FDR regulation), in particular focusing on sectors and economic segments related to environmental protection such as, for example, the circular economy, water management, blue economy, renewable energy and climate transition

n relation to the insurance sector, oste Vita's portfolio includes investments in alternative asset classes characterised by a specific green component: for example, the Real state Diamond urozone Office (D O) fund, which has obtained a high rating in terms of sustainability by the GR B and which won the title of Green Fund, and the Diamond Core real estate investment fund whose underlying assets are W LL/L D Gold certified properties and which received the first green financing in the talian real estate sector

ESG funds of funds

As part of the G integration implemented by products consisting of fund of funds, Banco osta Fondi GR operates as an asset manager through flexible solutions based on the adoption of a specific proprietary model to support investment decisions his product category includes the funds of Banco osta Fondi GR's Universo family n 2023, Banco osta Universo 40 and Banco osta Universo 60 were joined by a third fund, Universo ematico, which focuses its investments on three megatrends (planet, innovation, population) that are believed to be among the main drivers of future changes n turn, oste Vita offers insurance investment products containing investment options that promote environmental and/or social characteristics under Article 8 FDR (managed under delegation by the Group's GR) represented by the Company's internal funds: oste Vita Valore ostenibilità Dinamico, oste Vita Valore ostenibilità quilibrato, oste Vita Valore ostenibilità viluppo and oste Vita Obiettivo ostenibilità

n all cases, the selection of funds in which to invest is based on the consideration of G criteria that allow for the preference of the most virtuous fund houses from the point of view of the responsible investment approach adopted and the relevant funds with investment policies aimed at selecting issuers with positive G profiles he evaluation of the fund house is, in fact, a selection criterion that ensures the consistency of its commitment with that of the GR o this end, a

proprietary G rating methodology has been developed by Banco osta Fondi GR that assigns an internal rating to investable UC based on an assessment of the degree of commitment and application of responsible investment strategies

Best-in-class Funds

his category includes those investment products of Banco osta Fondi GR, managed under delegation by third parties, for which a strategy is adopted aimed at selecting only issuers that respect certain acceptability thresholds, defined according to an G rating scale that can be developed by the delegated manager or by the reference info-provider chosen by the latter

he offer of this type of fund includes, as of 2021, the Banco osta elezione Attiva and Banco osta Azionario uro products, managed under delegation by Amundi, an operator with a strong vocation for responsible investment hey were joined in 2022 by the Banco osta Azionario nternazionale, Banco osta Orizzonte Reddito and Banco osta Azionario Flessibile funds; these products select issuers with the aim of minimising exposure to certain business sectors (e g tobacco, coal) and maintaining an G rating level per individual issuer or average portfolio above a predetermined minimum threshold

he transition of the three Banco osta funds Mix 1, Mix 2 and Mix 3 from Article 6 to Article 8 FDR was completed in the course of 2023 he AMC changed its investment policies, redefining its investment objective and management style in order to orient investments towards assets that meet certain G requirements n particular, a strategy combining negative selection criteria, such as the exclusion of issuers operating in the coal, defence, tobacco and gambling sectors, with the implementation of a best-in-class strategy based on the G scores of the individual issuers in the portfolio, was also adopted here

During the reporting year, oste Vita also launched a product, oste rospettiva Valore Gold, whose underlying investment options, consisting of a new eparate Account and a specific portfolio of securities (so-called pecific rovision of Assets), are both classified under Article 8 FDR on the basis of the implementation of a positive selection strategy dependent on the portfolio's G rating

he oste nvesto ostenibile product of Banco osta Fondi GR deserves separate consideration; this fund differs from the Best-in-Class product range in that it makes, with regard to a portion of its assets under management, sustainable investments, i e investments that contribute to at least one environmental or social objective without significantly damaging any other sustainability objective

Poste Italiane Group Report on Operations at 31 December 2023

2023 Annual Report

ntegration of G factors into insurance policies

he increasing scale of environmental and social issues and the macro-trends

that have emerged in recent years have led to an urgent need to ensure adequate coverage of environmental, social and governance risks as well, drawing the attention of the insurance industry and the essential role it plays in this area n fact, through correct and effective

implementation of risk management processes also by sector operators, the insurance industry can contribute to the mitigation of risks for the community and the sustainable development of society n light of these considerations, the path of G integration in the financial business was also initiated with reference to insurance activities and oste Vita, on the basis of this awareness, decided to define a robust approach formalised within its "Responsible nsurance olicy" his olicy describes the principles, objectives and processes underlying the Company's approach to managing risks and opportunities related to G factors within traditional insurance processes

Emilia-Romagna Emergency

he oste Vita Group has activated a plan of initiatives to help and support its policyholders living in the flooded areas of milia-Romagna and in some municipalities of Marche and uscany

The early adoption of an ESG integration approach in the financial business has enabled Poste Vita to anticipate developments in the relevant market scenarios by introducing innovative insurance products with social and environmental impacts

ince 2019, the oste Vita Group has been a signatory to the rinciples for ustainable nsurance ( ) promoted by the United ations, affirming its formal commitment to the inclusion of sustainability criteria relevant to the insurance sector in its decision-making processes his commitment is also highlighted through collaboration paths with customers and partners aimed at raising awareness in this area and the promotion of synergies with

Brand Finance Global 500

n 2024, oste taliane ranks 231st in the ranking of the 500 brands with the highest financial value worldwide

bodies and institutions with the aim of favouring widespread and cohesive action on G issues

One area that has engaged oste Vita and oste Assicura companies, and which will continue to be developed with a view to ongoing evolution, concerned the integration of further considerations in relation to sustainability risks into the risk management framework and the Actuarial Function he aim is to ensure alignment with national and U regulatory requirements and market best practices, with a particular focus on climate change risks

nsurance products with social and environmental benefit

he oste Vita nsurance Group, consistent with its corporate objectives, defines and markets its products pursuing the objectives of enhancing the social role of insurance protection and inclusiveness facilitating economic affordability For this reason, the Group develops insurance solutions that, on the one hand, encourage the adoption of sustainable and responsible behaviour by its policyholders and, on the other, are functional to the mitigation of G risks During the development phase of its offering, the Group is committed to including more vulnerable social groups that need greater attention, such as younger and older people pecifically, in the area of individual pension plans, oste Vita offers special

complementary forms, accessible also to the younger generations, who find themselves having to fill a substantial pension gap, reducing the difference between the expected basic compulsory pension and what is needed to guarantee a decent standard of living

Moreover, in so-called risk coverages, such as term life or health policies, which play a crucial social role, the Group seeks to broaden the pool of potential policyholders as much as possible by adopting inclusive underwriting criteria With reference to oste Assicura, as part of its important social responsibility to bridge the insurance gap, the company pursues the objective of providing coverage for homogeneous groups of companies and their employees

tarting in 2021, the Group has put in place a process to evolve the services and functionalities available to customers on the main digital channels ( nsurance Reserved Area and Banco osta App) with respect to life and protection policies t is thanks to this update that policyholders have the possibility of viewing, in their rivate nsurance Area, the summary of the characteristics of the insurance product they have subscribed to and of activating additional services, such as, for life policies, the possibility of requesting partial or total redemption before maturity or requesting the settlement of a policy close to maturity, while for protection policies the possibility of managing their claims from the opening of the claim to settlement n the same year, as part of the evolution of oste taliane's advisory model, an experimental phase was launched, as part of the distribution strategy for insurance investment products (Multi-class and Class policies), of remote offerings through the dispatch by the Banco osta distributor, in the reserved area of customers, of personalised advice tailored to their profile n this way, customers have the possibility of finalising the remote consultations they receive online via Advanced lectronic ignature (Firma lettronica Avanzata, F A) his new mode of offering, which was included in most of the products in the catalogue in 2022, alongside the offering at ost Offices, confirms the multi-channel approach followed by the Group to improve the customer experience

n line with the strategic objectives, during 2023, the oste Vita Group continued the process of expanding the range of insurance investment products ( B s products) through the development of solutions that allow access to the opportunities offered by the financial markets, also seizing the return opportunities that arise from investments in securities characterised by positive G profiles his marked a strong evolution of the process started in May 2022 with the placement of oste Vita's first product classified as promoting G characteristics under the FDR, namely ' oste rogetto Valore 360' n the second half of 2023, the company made five B s products available to customers that promote environmental and/or social characteristics: these are the new products rogetto ntegrazione rogrammata, oste rogetto Bonus 4in4 and oste rospettiva Valore Gold, and the existing and reclassified products rogetto Dinamico ew and oluzione Valore ew he rules for qualifying investment options under Article 8 FDR were updated by oste Vita during the year in order to homogenise the strategies applied across different products Further developments in this direction are planned for 2024 with the launch of new products with environmental and social benefits

n particular, in 2023, oste Vita decided to extend the horizon of products with G characteristics to class portfolios for the first time n fact, the company's new segregated management scheme, oste Vita Valore olidità, has been classified under Article 8 FDR

Poste Italiane Group Report on Operations at 31 December 2023

Poste Prospettiva Valore Gold

" oste rospettiva Valore Gold" is a class insurance solution with specific assets, the benefits of which are linked to a pecific Asset ool for the first 5 years of the product's duration and to the osta Vita Valore olidità segregated fund for the following 5 years Both product components apply G integration criteria based on achieving a weighted average portfolio G rating of at least 50/100, both for the component invested in corporate issuers and for the component invested in government issuers n addition, issuers that are found to have significant involvement in coal mining or unconventional oil & gas activities and, at the same time, achieve an G score of less than 30/100 are to be excluded hese thresholds derive from the evaluation methodology adopted by the data provider, according to which a score of at least 50/100 represents a 'robust' level of performance by the rated issuer, while below 30/100 represents a 'weak' level of performance he investment strategy of the pecific Asset Allocation and the eparate Account requires that at least 65% of the assets are invested in such a way as to meet the G criteria described above

n addition to the sustainability considerations of the investment options in the product range, and thus to satisfying the needs of customers oriented towards more sustainable investment choices, the oste Vita Group is committed to offering customers all-round advice, which responds in an integrated manner to their investment needs and life and non-life protection needs For example, subscribing to oste rogetto Valore 360 allows, among others, the possibility of accessing in a single simplified process also ' oste Vivere rotetti', one of the insurance offers offered by oste Assicura in the area of protection most widely recognised by customers, which aims to provide an integrated and modular solution of protection, assistance and services in the areas of the person, property and assets

7.17 INDICATORS TABLES

he following tables show the indicators required by the Global Reporting nitiative standards, together with other indicators that oste taliane believes important in order to illustrate its performance he indicators are presented on the basis of the 8 illars of the Group's trategy

[GRI 2-6] Capillarity of the organisation(*)

	2021		2022		2023
	Category	Personnel	Category	Personnel	Category	Personnel
Operating Area Managers	6	19	6	22	6	21
Branch offices	66	825	67	821	67	828
Total	72	844	73	843	73	849

(*) he figures refer to the Group company, DA pA

[GRI 2-6] Capillarity of the organisation(*)

	2021		2022		2023
	Category	Personnel	Category	Personnel	Category	Personnel
Local Operating Centres	9	485	9	467	9	411

(*) he figures refer to the Group company ostel pA

ntegrity and transparency

[GRI 205-1] Companies assessed for risks related to corruption(*) and percentage(**) of operations audited for risks related to corruption

Analysis by corruption risk and impact of audit activities	2021	2022	2023
otal number of Group companies assessed for risks related to corruption	16	18	21
otal number of Group companies	24	33	32
ercentage of Group companies assessed for risks related to corruption	66	55	66
ercentage of operations audited for risk of corruption (***)
High coverage	86	64	82
Medium coverage	14	32	18
Low coverage	0	4	0

(*) Assessment of Group companies for risks related to corruption was conducted as part of the survey carried out in drawing up the Organisational, Management and Control Model required by Legislative Decree 231/2001

(**) Coverage represents the overall percentage of operations audited

(***) he figures refer to oste taliane pA

Reports handled by the whistleblowing committee [GRI 205-3] Established incidents of corruption and actions taken

Reports	2021	2022	2023
Reports handled	617	790	1,280
of which confirmed	28(*)	37(**)	83(***)
of which being evaluated	28	57	188
otal reports handled in the area of corruption	0	0	0
of which confirmed	0	0	0
of which being evaluated	0	0	0

(*) he decision-making measures with regard to confirmed reports are referred to the competent corporate functions or bodies, from time to time on the basis of the organisational responsibilities assigned he functions involved in decisionmaking are different from the functions that are part of the Whistleblowing Committee (CW) For cases involving senior personnel, the CW shall report this to the competent corporate/social bodies, ensuring that they are informed and kept upto-date on the developments of the initiatives implemented f the Whistleblower is jointly responsible for the violations he/she has reported, the reporting system of oste taliane and of the Group Companies provides for a privileged treatment for the latter with respect to the other jointly responsible persons, in accordance with the applicable rules

(**) Of 37 reports found to be confirmed, 30 relate to oste taliane pA Of these 30 reports:

• 1 was found to be critical, due to compliance risks;

• 11 were of a material level, due to: negligent behaviour by persons with organisational responsibilities, control systems with evident malfunctions attributable to specific significant risks, significant administrative, managerial or operational impacts;

• 18 were of insignificant level, due to non-critical or insignificant reports

On the subject of critical level reporting:

• A number of critical issues and violations were reported concerning: working hours, recognition of overtime, workplace safety, training for the safe driving of company vehicles, confusion and disorganisation, irregularities in the tracking of priority mail, delivery of ersonal rotective quipment ( ), piles of waste of all kinds abandoned in the yard, and others A potential impact was found under Legislative Decree 231/01 concerning the malfunctioning of mopeds, the delivery and use of and the presence of waste for disposal he management defined specific action plans on the anomalies detected

Concerning relevant level alerts:

• Reports of negligent behaviour on the part of persons with organisational responsibilities (post officers wore non-compliant accident shoes) were handled through follow-up audits, which did not reveal any critical situations in the working environment of the CD he corrective actions taken consisted of equipping all CD post officers with the correct footwear - he report due to intimidating behaviour (the manager allegedly took intimidating attitudes in particular towards C D staff who approached the union in question regarding contractual demands) was handled through follow-up audits that did not reveal any critical situations in the CD's working environment he corrective actions included management interventions carried out following the report, which helped to improve the internal climate

Regarding non-significant level alerts:

• he report of anti-union behaviour (the manager of a delivery centre engaged in anti-union behaviour towards a trade union organisation active at the centre) was handled through follow-up audits that did not reveal any critical situations in the working environment of the CD he corrective actions included management interventions carried out following the report, which helped to improve the internal climate

• he reports due to control systems with evident malfunctions attributable to specific significant risks (several anomalies were found that endangered the health of workers and the regular performance of work activities, including the malfunctioning of the ventilation system and the open red fire-fighting box with no protective glass) were handled through follow up checks that did not reveal any further critical situations in the work environment he corrective actions included the resolution of the reported anomalies

(***) Of 83 reports found to be confirmed, 45 relate to oste taliane pA Of these 45 reports:

• 2 serious reports of violations of the Code of thics, one relating to harassment in the workplace and one relating to fraud by an employee; for these critical issues, management took appropriate disciplinary action;

• 4 critical level reports referred to a fraud by third parties in the franking of postal products, cash shortages, violations of U security provisions and irregularities in the observance of working hours; for these critical issues the competent functions were informed for legal and disciplinary assessments;

• 24 material level reports attributable to negligent conduct on the part of persons with organisational and executive responsibilities, significant administrative, managerial or operational impacts;

• 12 insignificant reports;

• 3 reports were found to be of negligible level

With regard to the follow-up checks, carried out to verify the absence of discriminatory actions or other forms of retaliation against whistleblowers, it was found that:

• for the harassment case the working conditions of the resource did not deteriorate and the centre is constantly monitored for the presence of resources with relational problems;

• for cases relating to incorrect operation in O, the offices concerned are constantly monitored by the Branch and relations between the operators are strictly professional, with no further problems detected

EMARKET SDIR
CERTIFIED

2023 Annual Report
Poste Italiane Group	Report on Operations at 31 December 2023

Cases of bribery and corruption and corrective actions

Number of cases of bribery and corruption and corrective actions	2021	2022	2023
Cases of corruption and bribery	0	0	0

Specific training on procedures and policies of anti-corruption

Anti-corruption training	2021	2022	2023
otal workforce	92,661	100,829	85,279
Of which:
xecutives	455	478	278
Middle managers	13,899	14,393	10,598
Operational staff	78,307	85,958	74,403

Existing tenders which incorporate specific environmental criteria(*)

Tender procedures with environmental criteria	2021	2022	2023(**)
ercentage of suppliers selected on the basis of environmental criteria (%)	83 4	84 8	90 5

(*) he assessment regards tender processes for amounts above the U thresholds and is functional to identify tenders that include specific qualification environmental criteria in the subject, in the technical specifications or in the assessment criteria (e g O 14001, O 50001, low environmental impact vehicles, Minimum nvironmental Criteria, use of recyclable materials in supplies, F C certification, etc ), as well as in contractual clauses

(**) For 2023, reference is made to tenders launched included in the current thresholds for special sectors, conventionally extended to non-code tenders, referring to Competitive enders/Competitions carried out by oste for its own needs and in service for the Group Companies included in the centralised purchasing framework or Competitive enders/Competitions carried out directly and independently by the Group Companies themselves (subject to the economic thresholds): oste ay, ostel, osteVita ( oste Assicura), Banco osta Fondi, gi, oste Air Cargo, DA, exive etwork, osteWelfare ervizi he stabilisation of the sustainability compliance in procurement procedures ensured the continuation of the positive trend of the indicator, which recorded an increase in environmental performance of 5 7 percentage points compared to the 2022 figure he index, if not including tenders without a technical offer because they were awarded at the lowest price, certifies that almost all tenders launched require environmental criteria (> 99%)

Existing tenders which incorporate specific social criteria (*)

Tender procedures with social criteria	2021	2022	2023(**)
ercentage of suppliers selected on the basis of social criteria	84 5	88 3	87 9

(*) he analysis pertains to tender procedures for amounts exceeding U thresholds and is functional in identifying tenders that present specific social qualification criteria in the subject, in the technical specifications or in the evaluation criteria (e g A8000, O 45001, measures to combat Covid-19, measures concerning health, social security and employee well-being, diversity and inclusion, F C certification, etc ), as well as in the contractual clauses

(**) For 2023, reference is made to tenders launched included in the current thresholds for special sectors, conventionally extended to non-code tenders, referring to Competitive enders/Competitions carried out by oste for its own needs and in service for the Group Companies included in the centralised purchasing framework or Competitive enders/Competitions carried out directly and independently by the Group Companies themselves (subject to the economic thresholds): oste ay, ostel, osteVita ( oste Assicura), Banco osta Fondi, gi, oste Air Cargo, DA, exive etwork, osteWelfare ervizi he stabilisation of sustainability monitoring in purchasing procedures has guaranteed a relatively constant trend of the indicator, which records a slight decrease in social performance equal to - 0 4 percentage points compared to the 2022 figure he index, if not including tenders without a technical offer because they were awarded at the lowest price, certifies that almost all tenders launched require social criteria (> 98%)

Existing tenders that incorporate specific governance criteria(*)

Tender procedures with governance criteria	2021	2022	2023(**)
ercentage of suppliers selected on the basis of governance criteria	33 1	52 3	78 9

(*) he analysis relates to tendering procedures above the U thresholds and is functional to identify tenders with specific governance criteria in the qualification, evaluation criteria (e g O 37001, Legality Rating, Code of thics/Conduct, olicy, etc ) as well as in the contractual clauses

(**) For 2023, reference is made to tenders launched included in the current thresholds for special sectors, conventionally extended to non-code tenders, referring to Competitive enders/Competitions carried out by oste for its own needs and in service for the Group Companies included in the centralised purchasing framework or Competitive enders/Competitions carried out directly and independently by the Group Companies themselves (subject to the economic thresholds): oste ay, ostel, osteVita ( oste Assicura), Banco osta Fondi, gi, oste Air Cargo, DA, exive etwork, osteWelfare ervizi he stabilisation of the sustainability compliance in procurement procedures ensured the continuation of the positive trend of the indicator, which recorded a significant increase in governance performance of 26 6 percentage points compared to the 2022 figure he index, if not including tenders without a technical offer because they were awarded at the lowest price, certifies that almost all tenders launched require governance criteria (> 98%)

Type of material/raw material (kg)	2021	2022(*)	2023
Renewables	34,675,462	35,710,037	32,630,107
aper	18,775,259	19,333,096	15,358,637
Cardboard	6,115,574	7,026,213	8,921,461
Wood	9,784,629	9,350,728	8,350,009
Non-Renewables	3,538,701	3,208,353	3,573,122
lastic	2,655,118	1,986,962	2,042,802
nk/toner	80,003	71,084	51,260
Glues	6,552	8,485	10,262
Other(**)	797,028	1,141,822	1,468,798
Total	38,214,163	38,918,390	36,203,228

[GRI 301-1] Materials used by weight or volume

(*) he values relating to " aper", "Cardboard" and "Wood" referring to 2022 have been updated following a refinement of the reporting system

(**) 'Other' includes materials belonging to the categories: Labels/Adhesives, acks, eals, wine, consistent with the process of updating the material clusters allocated to the reporting categories in the previous reporting year

[GRI 301-2] Materials used that originate from recycling

Type of material/raw material from recycling (kg)	2021	2022(*)	2023
aper	4,003,532 9	4,248,312 6	3,576,722 2

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023

Percentage of materials used from recycling		41.61%	30.55%	32.73%
	of which: from recycling	15,901,857 2	11,890,937 3	11,850,101
Total materials used		38,214,163	38,918,390	36,203,228.32
nk/toner		17,795 7	23,451 3	20,642
lastic		205,653 4	109,955	366,492 1
Wood		9,784,527 7	1,709,561 5	735,710
Cardboard		1,890,347 4	5,799,657	7,150,534 6

(*) he values relating to " aper", "Cardboard" and "Wood" referring to 2022 have been updated following a refinement of the reporting system

Anti-competitive practices

Total sanctions	2021	2022	2023
anctions for anti-competitive practices/antitrust infringements (€)	11,000,000	0	0
umber of sanctions for anti-competitive practices/antitrust infringements	1	0	0

Suppliers with an ISO 14001 or EMAS certified environmental management system

Percentage of suppliers	2021	2022	2023
ercentage of qualified suppliers with an O 14001 or MA certified environmental management system (%)	83 4	84 8	90 5

[GRI 207-4] Reporting of information of a fiscal nature(*)

	2021					2022				2023
Fiscal data (€m)	Italy	Hong Kong	China	Italy	Hong Kong	China	United Kingdom	Italy(**)	Hong Kong(***)	China(****)	United Kingdom(*)
Revenue
from sales to	31,633	77	0	31,761	115	0	2	19,990	145	0	5
third parties
Revenue
from intra
group	63	0	1	95	0	3	2	117	0	2	11
transactions
with other tax
jurisdictions
rofits/losses	2,164	4	0	2,319	8	1	0	2,717	9	0	1
before tax
angible
assets other
than cash	2,454	0	0	2,592	0	0	0	2,746	0	0	0
and cash
equivalents
ncome taxes							0
paid on the	380	0	0	471 1	0	0		485	2 86	0	0 22

2023 Annual Report Poste Italiane Group							oste taliane's Financial tatements at 31 December 2023
basis of cash
accounting
principle
(**)
Corporate
income taxes
accrued on	587	1	0	817	1	0	0	792	2	0	0
profits/losses
Revenues	32,065	77	1	32,024	116	3	4	20,288	145	2	15

(*) Figures refer to the only four jurisdictions in which the oste taliane Group operates ( taly, Hong Kong, China and the UK)

(**) he figures refer to the following entities: oste taliane pA, oste Vita pA, Banco osta Fondi GR pA, uropa Gestioni mmobiliari pA, Consorzio Logistica acchi C A, DA xpress Courier pA, ostel pA, ostepay pA, Consorzio ervizi cpA, oste Air Cargo rl, oste Assicura pA, atentiVia oste cpA, Consorzio oste Motori, oste Welfare ervizi rl, oste nsurance Broker rl, MLK Deliveries pA, sennder talia rl, exive etwork rl, exive carl, et Holding pA, et nsurance pA, et nsurance Life pA, L Holding, L ay, Agile Lab rl, lurima pA, Bridge echnologies rl, Logos rl, ourcesense pA, ourcesence Digital rl, ourcesense echnology rl, ourcesense latforms rl

ignificant differences with respect to 2022, especially with regard to revenue, are due to the application of the accounting standard FR 17 in 2023 Below are the 2022 figures reclassified according to FR 17: Revenue from sales to third parties: 13,800; re-tax profit: 2,424; Corporate income taxes accrued on profits/losses: 849; Revenues: 14,063

(***) he figures refer to engi xpress Limited (logistics services)

(****) he figures refer to engi xpress Guangzhou Limited (logistics services)

(*****) he figures refer to ourcesense Ltd ( sector)

(******) With reference to the talian jurisdiction, two macro phenomena appear to have occurred in 2023, such as a credit of approximately €7 million deriving from the presentation of the upplementary Declaration for the 2017 tax year, as well as the tax effect deriving from the allocation to the risk provision for the liability underlying the issue of tax credits prudentially considered non-deductible and subject to further assessments, the final effect on the tax rate appears to be substantially offset

eople development

[GRI 2-7] Personnel by contract type, gender and business line (*)

		2021			2022			2023
Type of contract	Men	Women	Total	Men	Women	Total	Men	Women	Total
Contract Stable
(**)	49,714	60,197	109,911	52,022	61,393	113,415	50,472	59,789	110,261
Of which:
Mail, arcels and
Distribution	49,112	59,557	108,668	51,250	60,664	111,914	49,600	58,937	108,537
Financial ervices	249	217	466	252	229	481	260	249	509
nsurance ervices	214	269	483	220	239	459	293	329	622
ayments and						561	319	275
Mobile	140	154	294	300	261				594
Contract Flexible
(***)	5,700				3,358	9,058	4,742	2,876	7,618	6,013	3,881	9,894
Of which:
Mail, arcels &
Distribution	5,697	3,353	9,050	4,738	2,863	7,602	6,006	3,871	9,877
Financial ervices	0	0	0	0	0	0	0	0	0
nsurance ervices	3	4	7	0	1	1	2	6	8
ayments and
Mobile	0	1	1	4	12	16	5	4	9
Total	55,414	63,555	118,969	56,765	64,269	121,033	56,485	63,670	120,155

(*) he figures are shown in Full ime quivalent (F ) terms

(**) ncludes permanent personnel and apprenticeships

(***) ncludes fixed-term and agency personnel

[GRI 2-7] Personnel by contract type, gender and business line (*)

		2021			2022		2023
Type of epmloyment	Men	Women	Total	Men	Women	Total	Men	Women	Total
Full-time	53,763	59,321	113,084	54,817	60,142	114,959	54,047	59,298	113,345
Of which:
Mail, arcels & Distribution	53,159	58,695	111,854	54,043	59,425	113,468	53,171	58,463	111,634
Financial ervices	248	209	457	251	222	473	259	241	500
nsurance ervices	217	265	482	220	230	450	294	323	617
ayments and Mobile	139	152	291	303	265	568	323	271	594
Part-time	2,963	6,900	9,863	3,419	6,561	9,980	4,412	7,062	11,474

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Of which:
Mail, arcels and	2,961	6,875	9,836	3,416	6,529	9,945	4,408	7,027	11,435
Distribution
Financial ervices	1	11	12	2	9	11	1	10	11
nsurance ervices	0	10	10	0	13	13	1	15	16
ayments and
Mobile	1	4	5	1	10	11	2	10	12
Total	56,726	66,221	122,947	58,236	66,703	124,939	58,459	66,360	124,819

(*) Figures expressed as Headcount

Employees (Foreign)
Distribution by Country	2021	2022	2023
Of which:
China	24	32	36
Hong Kong	0	0	0
United Kingdom	0	2	6
Total	24	34	42

[GRI 2-8] Non-employees

		2021			2022			2023
Total number of trainees by age group and gender	Men	Women	Total	Men	Women	Total	Men	Women	Total
otal number of worked hours(*)	92	55	147	90	67	157	75	72	147
Of which:
< 30 years old	92	55	147	90	67	157	75	72	147
30 – 50 years old	0	0	0	0	0	0	0	0	0
> 50 years old	0	0	0	0	0	0	0	0	0

(*) Figures expressed as Headcount For each year, the number of "active" internships in that year was reported

EMARKET SDIR
CERTIFIED

Poste Italiane Group Report on Operations at 31 December 2023

Distribution of employees by educational qualification(*)

Type of education	2021	2022	2023
University degree (%)	19 1	21 5	23 1
High chool Diploma (%)	67 9	66 8	66 3
Middle chool certificate (%)	12 9	11 6	10 6
lementary chool certificate (%)	0 1	0 1	0
Total (%)	100	100	100

(*) he percentages have been calculated for permanent personnel in Headcount

Number of participants in development programmes

Development programme	2021	2022	2023
Assessment of potential	1,162	2,069	1,891
Mentoring and coaching paths	562	867	1,186
kills development and innovation	6,990	4,760	8,544
Total	8,714	7,696	11,621

[GRI 404-1] Average hours of training for employees by gender and category

	2021			2022			2023
Category	Men	Women	Total	Men	Women	Total	Men	Women	Total
xecutives	38	49	41	42	51	44	25	32	27
Middle managers	80	99	89	71	83	77	73	86	79
Operational staff	37	49	44	39	48	44	43	54	49
Total workforce	43	55	49	43	52	48	47	57	52

Average training days per employee

	2021			2022		2023
Days of training	Men	Women	Total	Men	Women	Total	Men	Women	Total
Average training
days provided to	7 1	9 1	8.2	7 2	8 7	8	7 8	9 6	8.7
employees

Hours by type of training(*)

Type of training	2021	2022	2023
Management	33,200	53,600	36,750
echnical – specialist	2,743,150	3,041,350	3,391,350
Compliance	3,266,800	2,893,800	3,110,000
Total	6,043,250	5,988,750	6,538,100

(*) he figures have been rounded in line with the figures reported last year For the total, the sum of the individual rounded values for each type of training was taken

Training programmes and career development

2023 Annual Report
Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

Training and development programmes	2021	2022	2023
otal expenditure on training and development	8,220,217	8,310,436	9,648,534
programmes (€)

Positions filled through internal hiring

2021	2022	2023
57	25	39

(*) he percentage of positions filled through internal hiring refers to the arent Company

Training and development inputs by gender and age

	2021				2022		2023
Training and
development	Men	Women	Total	Men	Women	Total	Men	Women	Total
inputs
Average number of
hours of training
and development	43.84	57.33	51.05	44.40	54.21	49.61	48.58	59.96	54.61
delivered to
employees(*)
Of which:
< 30 years old	46.95	65.90	54.17	67.24	100.74	80.40	63.54	96.32	76.18
30 – 50 years old	48.86	59.08	54.24	47.74	56.85	52.47	54.56	65.97	60.44
> 50 years old	37.32	54.64	47.18	33.19	44.65	39.76	35.23	48.00	42.65
Amount spent per
employee on	59.34	77.60	69.10	61.46	75.02	68.66	72.5	87.2	80.30
training and
development(**)
Of which:
< 30 years old	63.55	89.20	73.31	93.07	139.43	111.28	88.4	134.0	105.96
30 – 50 years old	66.13	79.96	73.42	66.07	78.68	72.63	83.8	97.7	90.99
> 50 years old	50.51	73.96	63.86	45.94	61.79	55.03	51.5	68.9	61.64

(*) Refers to the total number of training and development hours provided in the last fiscal year divided by the total number of F s

(**) Refers to the total amount spent on training and development in the last fiscal year divided by the total number of F s his figure does not include the operational cost of the "learning and development" team, such as the salaries of the employees of that team

Total number of new hires by gender and age(*)

		2020 2021 2022					2023
Total number of new hires	Men	Women	Total	Men	Women	Total	Men	Women	Total	Men	Women	Total
New hires by gender	1,153	1,023	2,176	1,356	1,268	2,623	4,208	3,664	7,872	1,814	1,660	3,474
Of which:
< 30 years old	568	478	1,046	773	667	1,440	2,058	1,667	3,724	885	697	1,582
30 – 50 years old	540	519	1,059	532	570	1,102	2,017	1,936	3,953	850	918	1,769
> 50 years old	45	26	71	51	31	82	133	62	195	78	45	123
ercentage of new hires by gender(%)	53	47	100	52	48	100	53	47	100	52	48	100
Number of positions filled through internal hiring(**)	91	68	159	847	884	1,731	449	394	843	415	364	779
Of which:
< 30 years old	91	68	159	0	0	0	111	49	160	99	55	154
30 – 50 years old	0	0	0	0	0	0	325	309	634	295	272	567
> 50 years old	0	0	0	0	0	0	13	36	49	21	37	58

(*) he figures are shown in Full ime quivalent (F ) terms

(**) Figures referring to the arent Company oste taliane pA and oste Air Cargo

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Trend of employee involvement by gender(*)

	2021				2022		2023
Trend of employee involvement	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber of employees involved in engagement activities	14,417	16,146	30,563	10,345	11,335	21,680	23,439	26,008	49,446
otal number of Group employees	55,414	63,555	118,969	56,765	64,269	121,033	56,485	63,670	120,155
ercentage of employees involved in engagement activities(%)	26	25	26	18	18	18	41	41	41(**)

(*) Figures are expressed on the basis of the number of involvements/participants

(**) he target set for 2023 is 35%

Trend of employee involvement by gender and age

		2022		2023
Trend of employee involvement	Men	Women	Total	Men	Women	Total
umber of employees involved in
engagement activities by age group ( o )
< 30 years old	952	1,043	1,995	2,014	2,058	4,072
30 – 50 years old	4,971	5,446	10,417	13,146	13,467	26,613
> 50 years old	4,422	4,845	9,268	8,278	10,483	18,761
umber of employees involved in
engagement activities by age group ( o )
< 30 years old	9	9	9	9	8	8
30 – 50 years old	48	48	48	56	52	54
> 50 years old	43	43	43	35	40	38

[401-2] Benefits provided to full-time employees that are not provided to temporary or part-time employees

	2021				2022				2023
Benefits for full		Permanent		Fixed-term		Permanent		Fixed-term		Permanent		Fixed-term
time employees	contracts			contracts		contracts	contracts		contracts		contracts
	art	full	art	full	art	full	art	full	art	full	art	full
Financial benefits	time	time	time	time	time	time	time	time	time	time	time	time
Life		Y		Y		Y		Y		Y		Y
insurance		(*)		(*)		(*)		(*)		(*)		(*)
Health	Y			Y	Y			Y	Y			Y
Assistance	(**)	Y		(*)	Y (**)			(*)	(**)	Y		(*)
Coverage for disability		Y		Y		Y		Y		Y		Y
and		(*)		(*)		(*)		(*)		(*)		(*)
invalidity insurance
arental	Y	Y	Y	Y	Y	Y	Y	Y	Y	Y	Y	Y
leave	(**)	(**)	(**)	(**)	(**)	(**)	(**)	(**)	(**)	(**)	(**)	(**)
ension	Y (**)	Y	Y (**)	Y	Y (**)	Y	Y (**)	Y	Y (**)	Y	Y (**)	Y

(*) his refers to xecutives

(**) his refers to on-executives

Employee assessment systems

Percentage of employees by type of assessment (%)	2021	2022	2023
Management by objectives (*)	96	96	97
Multidimensional performance assessment(**)	96 2	97 4	98 3
Comparison of employees in the same category(***)	0	0	0

(*) n the field of Human Resources, management by objectives is a method of staff evaluation based on the results achieved against fixed objectives, and not on the competences expressed he figures have as target value the entire population of the oste taliane Group he percentages refer to the resources assessed in the reference year and therefore excluded from the calculation are the resources that cannot be assessed due to long absence (for 2023 with reference to the assessment year 2022 the number of A is approximately 3,000 resources, while, for the 2022 evaluation year, 4 managers are excluded from the multidimensional evaluation, indicated as "not assessable")

(**) he percentage refers to the total managerial population assessed in the 180° assessment process compared to the total of those assessable (1,382 assessed by colleagues out of 1,406 assessable) Also for 2023 (performance 2022), the multidimensional assessment is not only made up of the 180° process (assessment of managers, colleagues) but for 205 managers, the overall assessment is given by the contribution of managers, colleagues and collaborators (360° assessment)

(***) he comparison of employees belonging to the same category, which refers to a system in which employees are systematically compared in relation to their colleagues of the same professional level, belonging to the same team/function, is not applicable to oste taliane's model

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Workforce trends	2021	2022	2023
otal turnover rate (%)(*)	7 90	6 30	6 40
Voluntary turnover rate (%)(*)	7 20	5 50	5 50
Average cost of F s hired (€)	36,000(**)	35,700(**)	42,262(***)

(*) he turnover rate was calculated on the basis of the number of F s leaving the Group as a proportion of the total workforce for year n-1. he voluntary turnover rate is F s leaving the Group voluntarily as a proportion of the total workforce for year n-1

(**) he average per capita annual cost of new hires regards all types of contract (permanent, fixed-term, executives, etc ) he per capita figure takes into account the following elements: fixed remuneration, ancillary remuneration (performance bonus, overtime, various allowances, etc ) mainly in addition to the contributions/employee termination benefits on the first two elements, but does not take into account: canteen voucher, travel costs (trains, planes, hotels, etc ) and company car because they do not fall within the scope of the cost of labour he average cost for F s hired refers to the arent Company

(***) he average annual per capita cost of hiring concerns the following contract types (permanent contracts, apprenticeships, managers) he total annual cost incurred for newly recruited resources 2023 is identified through the ratio of the aforementioned total cost to the F sum (weighted by the number of months of impact) to obtain the average cost of newly recruited resources in the year 2023 For xecutives, the average cost is used he total number of new recruits for the year 2023 for the arent Company is 2,973 er capita labour costs only take into account ordinary salary items that take into account the following elements: fixed remuneration, accessory remuneration (e g performance bonus, various allowances, etc ) to which contributions/employee severance indemnity on the first two elements are mainly added, but do not consider: canteen ticket, travel costs and company car he average cost for F s hired refers to the arent Company

		2021			2022			2023
Turnover rate of employees	Men	Women	Total	Men	Women	Total	Men	Women	Total
otal turnover rate (%)(*)	3 9	4 3	8.2	3 0	3 2	6.2	3 3	3 3	6.6
Of which:
< 30 years old	0 1	0 1	0.2	0 2	0 1	0.3	0 2	0 2	0.4
30 – 50 years old	0 2	0 2	0.4	0 3	0 2	0.5	0 4	0 3	0.7
> 50 years old	3 6	4 0	7.6	2 5	2 9	5.4	2 7	2 8	5.5
Voluntary turnover rate (%)(*)	3.6	3.9	7.5	2.5	2.9	5.4	2.8	2.9	5.7
Of which:
< 30 years old	0 1	0 1	0.2	0 2	0 1	0.3	0 2	0 1	0.3
30 – 50 years old	0 1	0 1	0.2	0 2	0 2	0.4	0 3	0 3	0.6

Turnover rate of employees by gender and age

EMARKET SDIR
CERTIFIED

2023 Annual Report Poste Italiane Group								Report on Operations at 31 December 2023
> 50 years old	3 4	3 7	7.1	2 1	2 6	4.7	2 3	2 5	4.8

(*) he turnover rate was calculated on the basis of the number of F s leaving the Group as a proportion of the total workforce for year n he voluntary turnover rate is F s leaving the Group voluntarily as a proportion of the total workforce for year n

Disputes

Disputes	2021	2022	2023
Disputes with employees	700	601	750(*)

(*) he periodic trends show an increase in the Group's disputes compared to the same period of the previous year, attributable almost exclusively to oste taliane n fact, 750 new cases were counted in the reporting period compared to 601 cases in 2022, an increase of about 20% On the "establishment of the employment relationship" front, there has been a slight increase here are 148 new disputes (those in 2022 were 136) of which 13 C D, 104 hirings in procurement matters and 31 temporary work As regards the "conduct of the employment relationship", it is noted that the disputes arising in 2023 are 524 (those in 2022 were 390), recording an increase of approximately 26% determined largely by cases relating to conservative disciplinary sanctions and wages following a contract declared illegitimate Finally, as far as 'termination of employment' is concerned, there were 78 new disputes, broadly in line with last year (75 in 2022)

[GRI 403-8] Workers covered by an occupational health and safety management system(*)

	2021				2022			2023
Employees covered by the system(**)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber employees
covered by the system	56,303	66,076	122,379	57,257	66,352	123,609	57,677	66,023	123,700
% employees covered
by the system	100	100	100	100	100	100	100	100	100

(*) Data do not include managerial staff due to the different configuration of the contractual employment relationship

(**) otal number of employees covered by an occupational health and safety management system

	2021				2022			2023
Employees covered by the system(*)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber employees covered by the system	56,303	66,076	122,379	57,257	66,352	123,609	57,677	66,023	123,700
% employees covered by the system	100	100	100	100	100	100	100	100	100

(*) otal number of employees covered by an occupational health and safety management system that is internally audited

2021	2022	2023

Employees covered by the system(*)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber employees
covered by the system	56,207	65,989	122,196	57,167	66,276	123,443	57,620	65,993	123,613
% employees covered
by the system	99	99	99	99	100	100	99	100	100

(*) otal number of employees covered by an occupational health and safety management system that has been audited or certified by an independent third party (e g in line with O 45001)

	2021			2022			2023
Non-employees covered by the system(*)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber of non
employees covered by
the system	3,021	831	3,852	3,465	256	3,721	4,263	2,469	6,732
% of non-employees
covered by the system	100	100	100	100	90	99	99	99	99

(*) otal number of non-employees covered by an occupational health and safety management system

	2021			2022			2023
Non-employees covered by the system(*)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber of non
employees covered by
the system	1,797	336	2,133	3,011	242	3,253	3,139	952	4,091
% of non-employees
covered by the system	59	40	55	87	85	87	73	38	60

(*) otal number of employees covered by an occupational health and safety management system that is internally audited

2023 Annual Report
Poste Italiane Group	Report on Operations at 31 December 2023

	2021			2022			2023
Non-employees covered by the system(*)	Men	Women	Total	Men	Women	Total	Men	Women	Total
umber of non
employees covered by
the system	2,094	533	2,627	2,936	212	3,148	2,543	870	3,413
% of non-employees
covered by the system	69	64	68	85	74	84	59	35	50

(*) otal number of employees covered by an occupational health and safety management system that has been audited or certified by an independent third party (e g in line with O 45001)

[GRI 403-9] Occupational accidents

Occupational accidents including Covid-19 cases

		2021			2022		2023
Employees	Men	Women	Total	Men	Women	Total	Men	Women	Total
Rate of
occupational
Accidents
recordable(*)	63 26	62 51	62.87	136 70	164 12	150.96	27 85	25 52	26.63
Rate of
occupational
accidents
with severe
consequence
(**) s	10 48	11 48	11.01	7 27	6 98	7.12	6 54	6 96	6.76
Rate of
deaths
resulting
from
accidents at
work	0 07	0 02	0.04	0 07	0 01	0.04	0 01	0 01	0.01
Average
mobile			8,109			14,663			14,013
injuries at
work(***)
Injuries	5,759	6,453	12,212	11,841	15,461	27,302	2,829	2,986	5,815
Of which:
at work	5,346	5,868	11,214	11,410	14,850	26,260	2,349	2,337	4,686
whilst							480	649	1,129
travelling(****)	413	585	998	431	611	1,042
Fatalities	6	4	10	7	1	8	3	2	5
Of which:

2023 Annual Report
Poste Italiane Group						oste taliane's Financial tatements at 31 December 2023
at work	6	2	8	6	1	7	1	1	2
whilst	0	2	2	1	0	1	2	1	3
travelling(****)
Occupational
accidents
with severe
consequence
s	1,032	1,257	2,289	742	828	1,570	715	821	1,536
Of which:
at work	886	1,078	1,964	607	632	1,239	552	637	1,189
whilst							163	184	347
travelling(****)	146	179	325	135	196	331
Total number
of worked	84,510,5	93,871,3	178,381,8	83,468,2	90,480,5	173,948,7	84,358,4	91,575,8	175,934,2
hours	22	11	33	72	04	76	94	04	98

(*) o of workplace injuries divided by the number of hours worked multiplied by 1,000,000 he rate is calculated for permanent and flexible personnel

(**) A work-related accident that involves absence from work greater than or equal to 40 days and leads to an injury from which the worker cannot recover, does not recover or cannot realistically be expected to recover fully and return to the preaccident state of health t excludes deaths

(***) he trend in the number of occupational accidents of the arent Company was also observed through the application of a three-year moving average, using accident data, gross Covid, from 2019 to 2023 his metric makes it possible to determine the trend of the accident phenomenon by mitigating the distorting effects of exceptional events (pandemic), as well as to observe the effectiveness of management actions with a medium to long term time horizon and aimed at containing the risk factors controllable by the company (e g progressive adoption of the Lean methodology in sorting centres) pecifically, the calculation was made considering a total period of five years (2019 – 2023) and the average of three consecutive three-year periods (19-20-21 / 20-21-22, 21-22-23), comparing quarterly data and the cumulative since the beginning of the year FY 2021, 2022 and 2023 are thus to be understood correspondingly as FY 19-20-21, FY 20-21- 22 and FY 21-22-23

(****) Accident occurring during the normal journey between home and place of work or during the worker's normal journey to the place where meals are usually taken, if there is no company canteen Moreover, even during the normal journey that the employee has to make to go from one place of work to another, in the case of relations with several employers

Poste Italiane Group Report on Operations at 31 December 2023

Absenteeism rate including Covid-19 cases

Number of employee absences by type

Employees		2021		2022			2023
	Men	Women	Total	Men	Women	Total	Men	Women	Total
Illness	731,341	1,032,274	1,763,615	739,850	1,056,700	1,796,550	580,693	842,346	1,423,039
Injury	159,888	187,179	347,067	181,770	232,840	414,610	84,282	98,430	182,712
Stress	0	0	0	0	0	0	0	0	0
Other (specify)	0	0	0	0	0	0	0	0	0
Hospitalisation/
Convalescence
Absenteeism rate	5 29	6 18	5.77	5 53	6 73	6.17	4 05	4 97	4.54(**)
(*)

(*) o of days of absence due to illness and injury/working days * 100 he rate is calculated for permanent personnel only and does not include executives

(**) he target set for 2023 is 5%

Rate of occupational illnesses

Employees	2021	2022	2023
umber of recordable cases of occupational illnesses	8	5	12
Rate of recordable occupational illnesses (%)	0 04	0 03	0 07

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

	2021				2022		2023
Employees	Men	Women	Total	Men	Women	Total	Men	Women	Total
Rate of
occupational
Accidents
recordable(*)	30.91	26.26	28.46	30.38	25.44	27.81	27.82	25.42	26.57
Rate of
occupational
accidents
with severe
consequence
(**) s	7 56	7 29	7.42	7 01	6 71	6.85	6 54	6 96	6.76
Rate of
deaths
resulting
from
accidents at
work	0 04	0 00	0.02	0 07	0 01	0.04	0	0	0
Average
mobile			5,351			4,753			4,812
injuries at
work(***)
Injuries	3,025	3,050	6,075	2,967	2,913	5,880	2,827	2,977	5,804
Of which:
at work	2,612	2,465	5,077	2,536	2,302	4,838	2,347	2,328	4,675
whilst	413	585	998	431	611	1,042	480	649	1,129
travelling(****)
Fatalities	3	2	5	7	1	8	3	2	5
Of which:
at work	3	0	3	6	1	7	1	1	2
whilst	0	2	2	1	0	1	2	1	3
travelling(****)
Occupational
accidents
with severe
consequence
s	785	863	1,648	720	803	1,523	715	821	1,536
Of which:
at work	639	684	1,323	585	607	1,192	552	637	1,189
whilst							163	184	347
travelling(****)	146	179	325	135	196	331
Total number	84,510,5	93,871,3	178,381,8	83,468,2	90,480,5	173,948,7	84,358,4	91,575,8	175,934,2
	22	11	33	72	04	76	94	04	98

2023 Annual Report
Poste Italiane Group	Report on Operations at 31 December 2023

of worked
hours

(*) o of workplace injuries divided by the number of hours worked multiplied by 1,000,000 he rate is calculated for permanent and flexible personnel

(**) A work-related accident that involves absence from work greater than or equal to 40 days and leads to an injury from which the worker cannot recover, does not recover or cannot realistically be expected to recover fully and return to the preaccident state of health t excludes deaths

(***) he trend in the number of occupational accidents of the arent Company was also observed through the application of a three-year moving average, using accident data, gross Covid, from 2019 to 2023 his metric makes it possible to determine the trend of the accident phenomenon by mitigating the distorting effects of exceptional events (pandemic), as well as to observe the effectiveness of management actions with a medium to long term time horizon and aimed at containing the risk factors controllable by the company (e g progressive adoption of the Lean methodology in sorting centres) pecifically, the calculation was made considering a total period of five years (2019 – 2023) and the average of three consecutive three-year periods (19-20-21 / 20-21-22, 21-22-23), comparing quarterly data and the cumulative since the beginning of the year FY 2021, 2022 and 2023 are thus to be understood correspondingly as FY 19-20-21, FY 20-21- 22 and FY 21-22-23

(****) Accident occurring during the normal journey between home and place of work or during the worker's normal journey to the place where meals are usually taken, if there is no company canteen Moreover, even during the normal journey that the employee has to make to go from one place of work to another, in the case of relations with several employers

Absenteeism rate net of Covid-19 cases

	2021			2022			2023
Employees	Men	Women	Total	Men	Women	Total	Men	Women	Total
Illness	618,268	878,353	1,496,621	587,940	846,066	1,434,006	571,198	826,307	1,397,505
Injury	93,717	101,377	195,094	87,689	93,592	181,281	84,270	98,348	182,618
Stress	0	0	0	0	0	0	0	0	0
Other (specify)	0	0	0	0	0	0	0	0	0
Hospitalisation/
Convalescence
Absenteeism rate (*)	4 23	4 97	4.63	4 05	4 90	4.51	3 99	4 89	4.47

Number of employee absences by type

(*) o of days of absence due to illness and injury/working days * 100 he rate is calculated for permanent personnel only and does not include executives

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Occupational accidents involving non-employees including Covid-19 cases

	2021				2022			2023
Non employees	Men	Women	Total	Men	Women	Total	Men	Women	Total
Rate of
occupational	19.89	26.91	21.25	13.14	10.26	12.77	13.91	26.44	15.39
accidents
recordable
Rate of
occupational
accidents with	0 88	2 45	1.18	0 61	0 00	0.53	1 05	1 96	1.16
severe
consequences
Rate of deaths
resulting from	0	0	0	0	0	0	0	0	0
accidents at
work
Injuries	78	34	112	93	12	105	128	34	162
Of which:
at work	68	22	90	86	10	96	106	27	133
whilst travelling	10	12	22	7	2	9	22	7	29
Fatalities	0	0	0	0	0	0	0	0	0
Of which:
at work	0	0	0	0	0	0	0	0	0
whilst travelling	0	0	0	0	0	0	0	0	0
Occupational
accidents with	5	2	7	5	0	5	13	2	15
severe
consequences
Of which:
at work	3	2	5	4	0	4	8	2	10
whilst travelling	2	0	2	1	0	1	5	0	5
Total number
of worked	3,418,572	817,660	4,236,232	6,545,201	974,791	7,519,992	7,619,476	1,021,231	8,640,707
hours

Accident severity rate including Covid-19 cases

Non-employees	2021	2022	2023
umber of days lost due to injuries	3,068	3,267	3,442
otal hours worked	4,236,233	7,519,992	8,640,707
Accident severity rate (%)	0 001	0	0

EMARKET SDIR
CERTIFIED

Accidents by type including Covid-19 cases

Employees		2021			2022			2023
Accident by type	Men	Women	Total	Men	Women	Total	Men	Women	Total
Fall from a motorcycle	804	411	1,215	851	405	1,256	680	331	1,011
Accident with
company vehicle	481	349	830	351	243	594	379	301	680
Hit by a car	14	18	32	8	10	18	9	8	17
Accident with
company vehicle	11	28	39	24	34	58	40	43	83
Fall and/or awkward
movement	620	1,001	1,621	617	913	1,530	597	981	1,578
hysical attacks	207	240	447	200	222	422	187	221	408
Handling manual load	107	70	177	111	78	189	125	95	220
Robbery	28	49	77	28	49	77	36	61	97
Crushing contusion	279	254	533	300	304	604	244	234	478
Other causes	2,795	3,448	6,243	8,920	12,592	21,512	52	62	114
Total	5,346	5,868	11,214	11,410	14,850	26,260	2,349	2,337	4,686

Accidents by type net of Covid-19 cases
-----------------------------------------	--	--	--

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Employees		2021			2022			2023
Accident by type	Men	Women	Total	Men	Women	Total	Men	Women	Total
Fall from a motorcycle	804	411	1,215	851	405	1,256	680	331	1,011
Accident with
company vehicle	481	349	830	351	243	594	379	301	680
Hit by a car	14	18	32	8	10	18	9	8	17
Accident with
company vehicle	11	28	39	24	34	58	40	43	83
Fall and/or awkward
movement	620	1,001	1,621	617	913	1,530	597	981	1,578
hysical attacks	207	240	447	200	222	422	187	221	408
Handling manual load	107	70	177	111	78	189	125	95	220
Robbery	28	49	77	28	49	77	36	61	97
Crushing contusion	279	254	533	300	304	604	244	234	478
Other causes	61	45	106	46	44	90	50	53	103
Total	2,612	2,465	5,077	2,536	2,302	4,838	2,347	2,328	4,675

Non-employees		2021			2022			2023
Accident by type	Men	Women	Total	Men	Women	Total	Men	Women	Total
Fall from a motorcycle	13	6	19	4	1	5	1	1	2
Accident with
company vehicle	19	2	21	6	0	6	25	4	29
Hit by a car	1	1	2	0	0	0	1	0	1
Accident with
company vehicle	4	1	5	4	1	5	2	1	3
Fall and/or awkward
movement	12	3	15	39	5	44	34	17	51
hysical attacks	0	0	0	6	1	7	3	0	3
Handling manual load	7	7	14	10	1	11	28	1	29
Robbery	0	0	0	0	0	0	0	0	0
Crushing contusion	4	1	5	3	1	4	8	2	10
Other causes	4	0	4	14	0	14	4	1	5
Total	64	21	85	86	10	96	106	27	133

Employees trained on Health and Safety issues

	2021	2022	2023
otal employees trained on Health and afety issues	49,632	68,930	84,602

Number of cases of non-compliance with labour standards

	2021	2022	2023
umber of cases of non-compliance with labour standards	0	0	0

Diversity and inclusion

[GRI 405-1] Composition and breakdown of Poste Italiane SpA Board of Directors by gender and age(*)

		2021			2022		2023
Composition and
breakdown of the	Men	Women	Total	Men	Women	Total	Men	Women	Total
Board of Directors
Members bodies of
Governance	5	4	9	5	4	9	5	4	9
< 30 years old	0	0	0	0	0	0	0	0	0
30 – 50 years old	0	0	0	0	0	0	1	0	1
> 50 years old	5	4	9	5	4	9	4	4	8
Members bodies of
Governance(%)	55.6	44.4	100	55.6	44.4	100	55.6	44.4	100
< 30 years old	0	0	0	0	0	0	0	0	0
30 – 50 years old	0	0	0	0	0	0	20	0	11
> 50 years old	100	100	100	100	100	100	80	100	89

(*) Figures expressed as Headcount

[GRI 405-1] Classification of employee by category, gender and age group(*)

		2021			2022		2023
Level of
professionalism of	Men	Women	Total	Men	Women	Total	Men	Women	Total
employees
Executives	481	146	627	512	167	679	514	174	688
< 30 years old (%)	0	0	0	0	0	0	0	0	0
30 – 50 years old (%)	36	42	38	35	43	37	30	39	32
> 50 years old (%)	64	58	62	65	57	63	70	61	68
Middle managers	7,822	7,034	14,856	8,040	7,132	15,171	8,079	7,212	15,291
< 30 years old (%)	0 3	0 2	0 2	0 4	0 2	0 3	0.4	0.4	0.4
30 – 50 years old (%)	49	47	48	51	49	50	53	51	52
> 50 years old (%)	51	53	52	49	50	50	46	49	47
Operational staff	47,111	56,375	103,486	48,213	56,970	105,183	47,892	56,284	104,176
< 30 years old (%)	12	6	9	14	8	11	15	8	11
30 – 50 years old (%)	48	46	47	49	47	48	50	47	49
> 50 years old (%)	40	47	44	37	46	42	35	45	40
Total	55,414	63,555	118,969	56,765	64,269	121,033	56,485	63,670	120,155

(*) he figures are shown in Full ime quivalent (F ) terms for both permanent and flexible personnel

[GRI 405-1] Number of personnel by other diversity indicators

Employees		2021		2022			2023
	Men	Women	Total	Men	Women	Total	Men	Women	Total
mployees with
disabilities	3,123	2,171	5,294	2,934	2,239	5,173	2,728	2,308	5,036

Women in the workforce by category (%) (*)	2021	2022	2023
Management positions	31 5	32 4	32 2
op management(**)	17 9	16 3	16 4
Junior management(***)	33 4	34 3	34 1
Revenue-generating functions (****)	31 3	29 4	28 6
M positions(*)	21	20 8	20 7

(*) he percentages regard the presence of women in formally designated organisational roles within oste taliane and Group Companies

(**) ncludes first and second level personnel within oste taliane, the chief executive officers and general managers of the main Group companies and personnel reporting directly to them he target set for 2023 is 16%

(***) ncludes managers other than op Management

(****) ncludes organisational roles within the ost Office etwork (M ) and Business and ublic Administration functions (M A)

(*****) cience, technology, engineering and mathematics his may include, for example, the following professions: computer programmer, web developer, statistician, logistics manager, engineer, physicist, scientist he survey for M positions is carried out, in continuity with previous analyses, on the basis of the ' M' degree

Workforce diversity by country of origin(*)

			2021						2022						2023
Workfor ce diversit y by country of origin	Italia n	Switzer land	Ger man	Fren ch	Liby an	Venezu elan	Italia n	Switzer land	Ger man	Fren ch	Liby an	Venezu elan	Italia n	Switzer land	Ger man	Fren ch	Liby an	Venezu elan
umber of employe es by country of origin	116, 234	589	414	180	116	127	117, 976	569	243	168	101	122	117, 247	561	278	147	89	116
ercent age of employe es by country of origin(% )	97 7	0 5	0 3	0 2	0 1	0 1	97 5	0 5	0 2	0 1	0 1	0 1	97 6	0 5	0 2	0 1	0 1	0 1
umber employe es in manage ment position s by country of origin(**)	1,29 8	5	3	2	0	0	1,24 8	5	1	2	0	0	1,43 4	4	1	2	0	0
ercent age of employe es in manage ment position s by country of origin(% )	98 2 6	0 38	0 23	0 15	0	0	98 5	0 39	0 08	0 16	0	0	98 5	0 27	0 07	0 14	0	0

(*) Figures expressed in full-time equivalent (F ) he survey mainly refers to the country of birth

(**) ncludes the positions of junior, middle and senior management

			[GRI 404-3] Percentage of employees who receive regular performance appraisals, by gender and category(*)

		2021			2022			2023
Category (%)	Men	Women	Total	Men	Women	Total	Men	Women	Total
xecutives	92	97	94	100	100	100	94	100	96
Middle managers	96	98	97	98	99	98	97	98	98
Operational staff	81	86	84	80	87	84	81	87	84
Total	83	88	86	83	88	86	83	88	86

(*) Data reported refer to permanent personnel, the exclusion of flexible personnel from the performance assessment process is due to the fact that the annual life cycle of the performance assessment process cannot be reconciled with the timing of flexible contracts he table also includes the data of Group companies with the exception of the data of oste Air Cargo, as it is not possible to make a comparison of professional levels due to contract differences he 2023 figures also do not include approximately 3,000 personnel who cannot be assessed due to a lengthy absence from work, for whom it is not possible to express an annual assessment hese resources are, however, included in the process of assigning annual objectives for the coming year

[GRI 2-21] Annual total remuneration ratio

Remuneration	2021	2022	2023

2023 Annual Report Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

C O/ mployee remuneration ratio(*)	75	77	80(**)

(*) t is specified that: (i) he calculation was made by taking the average value of the employees' remuneration as a reference he figure calculated using the median will be supplemented as of next year; (ii) the remuneration for the numerator and denominator includes the annual total remuneration (for the C O-GM the fixed remuneration, the monetary portion of the up-front and deferred variable short-term incentive (MBO) scheme and the fair value of equity compensation, for employees the fixed and variable compensation) With respect to point b, the integration within the process is being consolidated, the comparison will be provided from the 2024 ntegrated Financial tatements

(**) With respect to point b, the ratio of the percentage increase in the annual total remuneration of the C O-GM to the average percentage increase in the annual total remuneration of all employees is 1 48

Gender pay gap

Gender pay gap	2021	2022	2023
Gender pay gap (RAL) (%)	-0 7	-0 7	-0.8

Operations that have been subject to human rights assessments(*)

	2021	2022	2023
Group companies(**)
umber of Group companies subject to assessment of respect of human rights	29	39	40
otal number of Group companies	29	39	40
otal percentage of Group companies subject to assessment of respect of human rights (%)	100	100	100

(*) All Group sites have mitigation plans in place to reduce the possibility of negative impacts related to human rights risks n this regard, it is specified that no human rights violations were detected in 2023 and therefore, no corrective action was necessary

(**) he scope of the indicator includes companies consolidated on a line-by-line basis and subsidiaries/associates consolidated at equity

Discrimination and harassment

Incidents of discrimination and harassment	2021	2022	2023
umber of incidents	0	0	0

Value to the territory

[GRI 201-1] Economic value generated, distributed and retained

2021	2022	2023
11,619	11,985	12,334
2021	2022	2023
9,917	10,109	10,382
3,117	3,024	3,315
5,303	5,221	5,044
55	102	85
671	916	898
4	2	4
768	844	1,036

Economic value retained (€m)	2021	2022	2023
conomic value retained within the Group	1,702	1,876	1,953

EMARKET SDIR
CERTIFIED

[GRI 203-1] Corporate giving and/or corporate citizenship initiatives(*) 162F 163

2023 Annual Report

Type of service (€000)	2021	%	2022	%	2023	%
Donations (**)	274	6	351	18	399	10
nvestments in communities (***)	954 9	23	1,547 5	79	1,206 3	30
Commercial initiatives (****)	2,994 5	71	55 5	3	2,370 3	60
Total	4,223.5	100	1,954	100	3,975.8	100
Breakdown by purpose (€000)
ales initiatives	2,994 5	71	55 5	3	2,370 3	60
ocial-cultural initiatives	1,229	29	1,898 5	97	1,605 5	40
of which:
Art, culture and education	271 7	6	597 5	31	544 4	14
Well-being and social inclusion	537 9	13	818 1	42	531 3	13
Knowledge training and development	419 4	10	482 9	26	529 8	13

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

(*) With reference to voluntary activities during paid working hours, the item is zero because all the initiatives organised by oste taliane in this sense took place outside working hours

(**) Donations: one-off disbursements made to support charitable organisations

(***) Community investments: spending on medium- to long-term initiatives supporting communities in collaboration with non-profit organisations and local authorities

(****) Commercial initiatives: business initiatives that benefit the community (e g sponsorship, occasional donations of the Company's property and other assets) he figures refer solely to spending on support for the community and do not include, for example, expenses linked to advertising and/or marketing initiatives relating to commercial initiatives)

¹⁶³ xpenditure on corporate giving and corporate citizenship in 2023 amounted to €447,880

Poste Italiane Group Report on Operations at 31 December 2023

Contributions and other expenses to organisations/individuals able to influence political campaigns and legislative activities(*)

Contributions by category (€)	2020	2021	2022	2023
Lobby agencies and representatives of interest	0	0	0	0
Campaigns/organisations/political applications at local, regional or national level	0	0	0	0
rade associations or tax-free groups (e g Chambers of Commerce, rade/ ector Association, etc )	3,263,286	3,263,286	3,263,286	3,263,286
Other	0	0	0	0
Total contributions and other expenses	3,263,286	3,263,286	3,263,286	3,263,286

(*) oste taliane is a member of Confindustria on the basis of a specific agreement that regulates membership procedures, the benefits deriving from the status of associate and the definition of the contribution regime he current agreement envisages, among other things, strategic initiatives aimed at promoting a new corporate culture involving business models and choices geared towards innovation and economic and social sustainability t is specified that the Confindustria membership fee, which stands at €3,263,286 for 2023, is the only contribution made by the Group in 2023

Settlements

Settlements	2021	2022	2023(*)
Settlements discussed regarding retail postal products	1,476	983	946
of which settled (%)	90 11	87 18	85 10
Settlements discussed regarding business postal products	925	1,148	1,206
of which settled (%)	92 54	90 24	92 04
Settlements discussed regarding BancoPosta products	250	280	237
of which settled (%)	69 2	65 71	71 31
Settlements discussed regarding PosteMobile products	63	39	38
of which settled (%)	88 89	97 44	89 47
Settlements Discussed regarding PostePay cards	400	355	335
of which settled (%)	79	76 1	77 31
Settlements discussed regarding IRS real estate fund (no. of applications)	0	0	0
of which settled (%)	0	0	0
Total settlements discussed	3,114	2,805	2,762
of which settled (%)	87 70	85 03	86 06

(*) n 2023, overall, there was a decrease in applications for conciliation Compared to the 2022 figure, there was a decrease in requests in almost all procedures; only the Business procedure had an increase (+5%) he most popular procedures, in any case, remain the postal procedures for both Retail and Business, as a result of the growth in parcel volumes For financial procedures, the payments market is constantly changing driven by new technologies and new security measures on payment services introduced with the amendment to the D2 regulation; there has, in fact, been a reduction in applications he procedure that recorded the largest decrease was the Bancoposta procedure (-15%)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

[FS14] ATMs for inclusion

ATM	2021	2022	2023
A Ms equipped with touchpads for the visually impaired and the blind	8,107	8,118	8,132
Of which:
A M with voice guidance	7,691	7,809	7,925
Total	8,107	8,118	8,132

[FS14] Post offices for cultural integration

Post offices	2021	2022	2023
Mono-ethnic	2	4	4
Multi-ethnic	30	31	31
umber of customers served	2,449,059	2,379,475	2,620,461
Total transactions carried out	4,102,071	4,073,335	4,436,489

New customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions

New retail current accounts openings	2021	2022	2023
ercentage of young current account holders (under 35)	25 2	26	28 5
ercentage of senior current account holders (over 65)	23 8	23 4	24
ercentage of current account holders who are "new talians"	12 2	15	17
New standard Postepay cards (*)
ercentage of young current account holders (under 35)	27 4	26 7	36 6
ercentage of senior current account holders (over 65)	13 4	15 7	12 7
ercentage of current account holders who are "new talians"	11 9	12 4	10 6
New Postepay Evolution cards (*)
ercentage of young current account holders (under 35)	40 2	41	39 7
ercentage of senior current account holders (over 65)	10 5	11 5	10 9
ercentage of current account holders who are "new talians"	22 2	25 3	26 9

(*) For ostepay tandard and volution cards, renewals during the year are excluded

EMARKET SDIR
CERTIFIED

Poste Italiane Group Report on Operations at 31 December 2023

Contributions to philanthropic and/or corporate citizenship activities

Type of contribution (thousands €)	2021	2022	2023
Cash contributions	4,223 54	1,953 95	3,975 84
otal amount of donations of products	0	0	0
or services, projects/partnerships
General operating expenses	319	376 8	447 9
Total	4,542.54	2,330.75	4,423.74

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Green transition

[GRI 302-1] Internal Group energy consumption(*)

Internal energy consumption	2021	2022	2023(**)
Consumption of fuel from non-renewable sources (GJ)	2,516,482 2,314,922		2,002,884
Of which:
L G	29,264	13,692	7,275
Diesel	720,765	450,907	297,584
atural gas	831,068	723,860	617,866
Jet fuel	664,375	682,129	546,389
etrol (GJ)	271,011	444,335	533,770
Consumption of energy from non-renewable sources (GJ)	53,140	30,037	46,623
Of which:
hermal energy (district heating)	25,677	23,308	26,071
lectricity supplied by the ational Grid	27,464	6,729	20,552
Consumption of energy from renewable sources (GJ)	1,588,317	1,570,291	1,485,592
Of which:
elf-produced photovoltaic electricity	7,145	9,032	22,554
Certified guarantee of origin electricity	1,581,172	1,561,258	1,463,038
Total energy consumption (GJ)	4,157,939	3,915,250	3,535,100
Of which:
from renewable sources	1,588,317	1,570,291	1,485,592
from non-renewable sources	2,569,623	2,344,959	2,049,507

(*) ncludes energy consumed by real estate and in road transport logistics and airmail ource of factors used in conversion to GJ: GHG rotocol and D FRA 2023 Guidelines

[GRI 302-2] External Group energy consumption(*)

External energy consumption	2021	2022	2023(**)
Total external Group energy consumption (GJ)	2,548,699	3,616,077	3,316,286
Of which:
Diesel	2,323,096	3,347,986	3,065,778
etrol (GJ)	0	0	31,763
atural gas	70	718	803
L G	127	161	166
Jet fuel	225,406	267,213	217,777

(*) he 2023 reporting boundary includes the arent Company and Group companies

(**) he target set for 2023 is 1,500,000 GJ (416,667 MWh) for total energy from renewable sources (internal and external) and 5,800,000 GJ (1,487,764 MWh) for total energy from non-renewable sources (internal and external)

Poste Italiane Group Report on Operations at 31 December 2023

[GRI 302-3] Energy intensity

Energy intensity	2021	2022	2023
Consumption of fuel from non-renewable sources (GJ)	2,516,482	2,314,922	2,002,884
Consumption of energy from non-renewable sources (GJ)	53,140	30,037	46,623
Consumption of energy from renewable sources (GJ)	1,588,317	1,570,291	1,485,592
Total energy consumption (GJ)	4,157,939	3,915,250	3,535,100
otal number of employees	118,969	121,033	120,155
Energy intensity (GJ/P)(*)	34.9	32.3	29.4

(*) = amount of personnel employed on site

[GRI 303-3] Water withdrawal(*)

Water withdrawal	2021	2022	2023(**)
Total water withdrawals (Ml)	1,756,076	1,585,905	1,876,399
Of which:
urface water	0	0	0
Groundwater	3,934	3,821	3,716
ea water	0	0	0
roduced water	0	0	0
hird-party water resources	1,752 142	1,582,084	1,872,683

(*) he management of water discharges is entrusted to third parties who are currently unable to determine the quantity of water used by the Company for recycling

(**) he target set for 2023 is 1,900 mega litres

	2021		2022		2023
Water withdrawal	Freshwater (≤1,000 mg/l total dissolved solids)	Other water types (>1,000 mg/l total dissolved solids)	Freshwater (≤1,000 mg/l total dissolved solids)	Other water types (>1,000 mg/l total dissolved solids)	Freshwater (≤1,000 mg/l total dissolved solids)	Other water types (>1,000 mg/l total dissolved solids)
Total water	1,756,076	0	1,585,905	0	1,876,399	0
withdrawals (Ml)
Of which:
urface water	0	0	0	0
Groundwater	3,934	0	3,821	0	3,7	0
ea water	0	0		0	0	0
roduced water	0	0		0	0	0
hird-party water resources	1,752,142	0	1,582,084	0	1,872,683	0

2023 Annual Report
Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

Wastewater reporting

Water discharges (m3)	2021	2022	2023
otal wastewater	1,756,076	1,585,905	1,876,399

[GRI 305-1] Total direct GHG emissions (Scope 1); [GRI 305-2] Total indirect GHG emissions (Scope 2); [GRI 305- 3] Total other indirect GHG emissions (Scope 3) (*)

GHG emissions	2021	2022	2023
Direct emissions – Scope 1(**) (tCO2e)	165,508	152,703	130,592
Of which:
L G	1,872	876	464
Diesel	50,384	32,102	21,006
atural gas	46,872	40,661	34,801
Jet fuel	48,142	49,489	39,630
etrol (GJ)	18,238	29,575	34,690
Indirect emissions – Scope 2 (tCO2 e) (***)	5,709	2,860	4,972
Of which: Scope 2 (tCO2 e) (**)
hermal energy	2,211	2,007	2,362
lectricity	3,498	853	2,610
Indirect emissions – Scope 2 (tCO2 e) (****)	178,737	257,796	234,326
Of which:
Diesel	162,392	238,359	216,411
atural gas	4	40	45
etrol (GJ)	0	0	2,064
L G	8 1	10 3	10 6
Jet fuel	16,333	19,387	15,796

(*) he 2023 reporting boundary includes the arent Company and Group companies

(**) mission factors used for conversion of fuels to CO2e: L G for 2021 1 56 kg CO² e/l (source D FRA 2021), for 2022 1 56 kg CO² e/l (source D FRA 2022) and for 2023 1 56 kg CO² e/l (source D FRA 2023) Diesel for 2021 2 51 kg CO² e/l (source D FRA 2021), for 2022 2 56 kg CO² e/l (source D FRA 2022) and for 2023 2 51 kg CO² e/l (source D FRA 2023) atural Gas for 2021 2 02 kg CO² e/m3 (source D FRA 2021), for 2022 2 02 kg CO² e/m3 (source D FRA 2022) and for 2023 2 04 kg CO² e/m3 (source D FRA 2023) etrol for 2021 2 19 kg CO² e/l (source D FRA 2021), for 2022 2 16 kg CO² e/l (source D FRA 2022) and for 2023 2 1 kg CO² e/l (source D FRA 2023) he target set for 2023 is 135,000 tCO² e

(***) oste taliane purchases certificates of renewable origin for 99% of its electricity consumption he GR ustainability Reporting tandards envisage two calculation methods for cope 2 emissions – the location-based method and the market-based method he Market-based method (methodology used by oste taliane) is based on CO² emitted by the energy suppliers from whom the organisation purchases, through a contract, electricity (in this case, certificates of guarantee of origin from renewable energy sources) and for the remaining 1% emission factors from the national electricity grid (emission factor for the calculation of the Market-based method for 2023 0 457 kg CO² e/kWh, source uropean Residual Mixes 2022, for 2022 0 457 kg CO² e/kWh, source uropean Residual Mixes 2021, for 2021 0 459 kg CO² e/kWh, source uropean Residual Mixes 2020) Conversion factors used to convert thermal energy into CO2e: for 2021, 0 17 Kg CO2 e/kWh, for 2022, 0 17 Kg CO2 e/kWh and for 2023, 0 18 Kg CO2 e/kWh he target set for 2023 is 5,000 tCO² e

he Location-based method, on the other hand, is based on average emission factors for regional, sub-national or national power generation Applying the Location-based the total Group emissions of cope 2 in 2021 117,630 tCO² and in 2022 109,022 tCO2e and in 2023 123,233 tCO2e mission factors used for Location-based method calculation: for 2021 0 258 kgCO2e/kWh (source: mission factor of electric consumption processed by RA 2021, referred to year 2020), for 2022 0 246 kgCO2e/kWh (source: lectricity consumption emission factor processed by RA 2022, referred to year 2021), for 2023 0 293 kgCO2e/kWh (source: lectricity consumption emission factor processed by RA 2023, referred to year 2022) Values for 2021-2022 have been updated following a refinement of the reporting system

(****) mission factors used for conversion of fuels to CO2e: Jet fuel for 2021 2 55 kg CO² e/l (source D FRA 2021), for 2022 2 55 kg CO² e/l (source D FRA 2022) and for 2023 2 54 kg CO² e/l (source D FRA 2023) he target set for 2023 is 250,000 tCO2e he table considers categories related to material issues relevant to the Group under the Green ransition illar strategy, specifically category 9 "Downstream transportation and distribution" and category 13 "Downstream leased assets " Category 6 "Business travel," category 7 " mployee commuting" and category 15 " nvestments" are monitored and reported in separate tables

[GRI 306-3] Waste generated [GRI 306-4] Waste recovered [GRI 306-5] Waste disposed of(*)

	2021			2022(**)			2023
	Waste	Waste	Waste	Waste	Waste	Waste	Waste	Waste	Waste
Waste by type	generate	recovere	dispose	generate	recovere	dispose	generate	recovered(*	dispose
(t)	d	d	d of	d	d	d of	d	**)	d of (****)
Total waste	34,471.7	33,202.5	1,269.2	37,245.3	36,443.2	802.1	38,904.5	38,533.1	371.4
Of which:
aper/cardboa		13,539 2	45 8	15,588 5	15,467 8	125 2	17,171 5	17,171 5	0
rd	13,584 9
lastic	1,359 3	1,359 3	0	1,282 4	1,282 4	0	1,365 5	1,365 5	0
Wood	10,481 8	10,478 2	3 6	10,097 9	10,097 9	0	10,537 3	10,537 3	0
Other	9,045 8	7,825 9	1,219 8	10,276 5	9,595 2	676 9	9,830 2	9,458 8	371 4

(*) he figures for the quantity of waste produced are provided by the companies that provide waste management services

(**) he 2022 values have been updated following a refinement of the reporting system

(***) he target expected for 2023 with respect to recovered waste is 36,000 tonnes

(****) he target set for 2023 in relation to waste sent to disposal (landfill, incinerated and other types of disposal) is 500 tonnes.

	2021		2022(*)		2023
Total weight of
hazardous waste	On site	Off site	On site	Off site	On site	Off site
recovered (t)
reparation for reuse	0	0	0	0	0	0
Recycling	0	364 4	0	247 8	0	150 5
Other operations of	0		0	0	0	0
recovery		0
Total	0	364.4	0	247.8	0	150.5
Total hazardous
waste recovered	364.4		247.8		150.5

(*) he 2022 values have been updated following a refinement of the reporting system

	2021		2022(*)		2023
Total weight of non
hazardous waste	On site	Off site	On site	Off site	On site	Off site
recovered (t)
reparation for reuse	0	0	0	0	0	0

waste recovered
Total non-hazardous	32,838.2		36,195.35		38,382.61
Total	0	32,838.2	0	36,195.35	0	38,382.61
recovery
Other operations of	0	0	0	0	0	0
Recycling	0	32,838 2	0	36,195 35	0	38,382 61
2023 Annual Report Poste Italiane Group				oste taliane's Financial tatements at 31 December 2023

(*) he 2022 values have been updated following a refinement of the reporting system

	2021		2022(****)		2023
Total weight of hazardous waste recovered (t)	On site	Off site	On site	Off site	On site	Off site
Disposal in landfill(*)	0	99 3	0	3 0	0	7 4
ncinerated(**)	0	0 3	0	0	0	0
Other type of disposal(***)	0	36 1	0	41 3	0	22 9
Total	0	135.8	0	44.3	0	30.3
Total hazardous waste disposed	135.8		44.3		30.31
	2021		2022(****)		2023
Total weight of non hazardous waste disposed (t)	On site	Off site	On site	Off site	On site	Off site
Disposal in landfill(*)	0	616 6	0	358 6	0	214 1
ncinerated(**)	0	0 01	0	0	0	0
Other type of disposal(***)	0	516 8	0	399 2	0	127
Total	0	1,133.4	0	757.8	0	341
Total non-hazardous waste disposed	1,133.4		757.8		341.1

(**) he target expected for 2023 with respect to the total amount of waste for disposal (hazardous and non-hazardous) is 300 tonnes

(**) he target expected for 2023 with respect to the total amount of waste for disposal by incineration (hazardous and non-hazardous) is 0 1 tonnes

(***) he target expected for 2023 with respect to the total amount of waste for disposal through forms other than landfilling and incineration (hazardous and non-hazardous) is 200 tonnes

(****) he 2022 values have been updated following a refinement of the reporting system

Waste disposal

Waste disposal (t)	2021	2022	2023
otal recycled/reused waste	33,202.54	36,443.16	38,533.11
otal waste disposed	1,269.20	802.11	371.40
Of which:

in landfill	715 94	361 65	221 49
incinerated with energy recovery	na	na	na
incinerated without energy recovery	na	na	na
otherwise disposed, please specify:	na	na	na
with unknown method of disposal	552 91	440 46	149 91

[GRI 302-1] Internal energy consumption relating to real estate facilities by source

Internal energy consumption	2021	2022	2023
Consumption of fuel from non-renewable sources (GJ)	897,844	765,154	650,328
Of which:
L G	13,234	8,482	6,580
Diesel	78,654	48,046	37,795
atural gas	805,955	708,626	605,953
Consumption of energy from non-renewable sources (GJ)	53,140	30,037	46,623
Of which:
hermal energy (district heating)	25,677	23,308	26,071
lectricity supplied by the ational Grid	27,464	6,729	20,552
Consumption of energy from renewable sources (GJ)	1,586,985	1,563,952	1,468,182
Of which:
elf-produced photovoltaic electricity	7,145	9,032	22,554
Certified guarantee of origin electricity	1,579,840	1,554,920	1,445,627
Total energy consumption (GJ)	2,537,969	2,359,143	2,165,133
Of which:
from renewable sources	1,586,985	1,563,952	1,468,182
from non-renewable sources	950,984	795,191	696,951

[GRI 305-1; GRI 305-2] Direct and indirect CO2e emissions relating to real estate facilities

Emissions	2021	2022	2023
Direct emissions – Scope 1 (tCO2e)	51,800	43,769	37,218
of which
L G	847	543	420
Diesel	5,498	3,421	2,668
atural gas	45,455	39,805	34,130
Indirect emissions – Scope 2 (market-based) (tCO2 e) (*)	5,709	2,860	4,972
Of which:
lectricity	3,498	853	2,610
hermal energy	2,211	2,007	2,362

(*) Applying the Location-based method, the total emissions attributable to the cope 2 in 2021 117,535 tCO2e and in 2022 108,589 tCO2e and in 2023 121,815 tCO2e Values for 2021-2022 have been updated following a refinement of the reporting system

[GRI 302-2; GRI 305-3] External energy consumption and CO² emissions relating to real estate facilities

External energy consumption and emissions	2021	2022	2023
Total external Group energy consumption (GJ)	127	161	166
Indirect emissions – Scope 2 (tCO2 e) (****)	8 1	10 3	10 6

[GRI 305-4] Intensity of GHG emissions related to real estate facilities

Emission intensity	2021	2022	2023
otal GHG emissions cope 1 (Kg CO2e)	51,800,253	43,768,581	37,217,848
otal GHG emissions cope 2 (Kg CO2e)	5,709,145	2,860,232	4,971,802
otal GHG emissions cope 3 (Kg CO2e)	8,130	10,274	10,606
quare metres of the Group's properties (m2 )	5,583,325	5,580,793	5,725,736
Intensity of direct and indirect emissions GHG Scope 1 and Scope 2	10.300	8.355	5,725,736 7.368
Intensity of other indirect GHG emissions (Scope 3)	0.001	0.002	0.002

GRI [GRI 302-4; GRI 305-5] Reduction in energy consumption and CO² emissions relating to real estate facilities

Initiatives implemented	2023
	nitiative 1(*)	nitiative 2(**)	nitiative 3(***)	nitiative 4(****)	nitiative 5(*)
tCO2 equivalent saved	891	3,566	1,065	813	376
Reducing the
consumption of energy	7,017	28,082	8,387	6,402	2,958
(GJ)

(*) L D project

(**) Decarbonisation project

(***) Carbon eutral roject on the C in adua

(****) hotovoltaic project

(*****) mart Building roject

EMARKET SDIR
CERTIFIED

Poste Italiane Group Report on Operations at 31 December 2023

Weight of electricity consumption relating to real estate facilities by type of business

Electricity consumption	2021	2022	2023
ost offices (%)	47	55	55
Head offices (%)	16	15	15
Operational sites (sorting centres) (%)	14	14	14
Delivery logistics centres (%)	12	7	7
Data Centres (%)	11	9	9

Total cost of energy purchased for real estate facilities

Total costs of purchased energy	2021	2022	2023(*)
otal expenditure on energy (€)	83,196,736	62,155,518	97,692,824

(*) he target set for 2023 is 100,000,000 mega litres

Total savings or overall profits from energy saving programmes

Programmes that generated savings (€)	2021	2022	2023
L D project	1,739,793	640,000	840,000
Decarbonisation project	-	-	1,734,447
Carbon eutral roject on the C in adua	-	-	600,000
nergy efficiency programme	735,273	600,000	-
mart Building roject	124,547	340,000	242,057
Programmes that generated a profit (€)	2021	2022	2023
hotovoltaic plants	170,000	1,200,000	522,982

[GRI 302-2; GRI 305-3; GRI 305-5] External energy consumption and CO² emissions relating to the energy sector

External energy consumption and emissions	2023
Total external Group energy consumption (GJ)	1,856,635
Indirect emissions – Scope 3 (tCO2 e)	56,189 9
Offset indirect emissions – Scope 3 (tCO2e) (*)	56,189 9

(*) Carbon dioxide emissions of gas released for consumption are fully offset through the purchase of carbon credits that attest to the Group's support for international projects aimed at reducing greenhouse gases and improving people's lives

Corporate fleet data
Corporate fleet data	2021	2022	2023
Total km travelled	321,599,897	320,472,162	1,177,526,577
otal vehicles (no )	31,645	30,850	31,963
Of which:
traditional vehicles	26,747	19,441	17,774
alternative vehicles	4,898	11,409	14,189
Of which:
bicycles	324	333	333
electric vehicles	1,805	3,654	5,822
hybrid motor vehicles	79	5,782	6,546

petrol-natural gas fuelled vehicles	1,615	1,410	1,363
petrol-L G fuelled vehicles	1,075	230	125
diesel-natural gas fuelled vehicles	0	0	0
L G fuelled vehicles	0	0	0
ercentage of alternative vehicles (%)	15 5	37	44 4

[GRI 302-1; GRI 305-1; GRI 305-2] Energy consumption and CO2e emissions to the company road fleet

Energy consumption and emissions	2021	2022	2023
Total energy consumed (GJ)	955,596	873,978	823,578
Of which:
Diesel	642,111	402,861	259,789
atural gas	25,112	15,234	11,913
L G	16,029	5,210	695
etrol (GJ)	271,011	444,335	533,770
Certified guarantee of origin electricity	1,332	6,338	17,411
Direct emissions – Scope 1 (tCO2e)	65,566	59,445	53,744
Indirect emissions – Scope 2 (tCO2e)(*)	0	0	0

(*) Applying the Location-based method, the total emissions attributable to the corporate road fleet of cope 2 in 2021 96 tCO2e and in 2022 433 tCO2e and in 2023 it is 1,419 tCO2e Values for 2021-2022 have been updated following a refinement of the reporting system

[GRI 302-2; GRI 305-3] Energy consumption and emissions by mail and charter transport(*)

Energy consumption and emissions	2021	2022	2023
Total external Group energy consumption (GJ)	2,323,166	3,348,703	3,284,357
Indirect emissions – Scope 3 (tCO2e)	162,396	238,399	218,520

(*) he 2023 reporting boundary includes the arent Company and Group companies

Air transport fleet data

Air transport data	2021	2022	2023
umber of aircraft	16	16	16
AirMail (hours)	8,386	8,635	5,774
Charter (hours)	87	193	129

[GRI 302-1; GRI 305-1] Energy consumption and emissions by the mail and charter flee

Energy consumption and emissions	2021	2022	2023
Total internal Group energy consumption (GJ)	664,375	682,129	546,389
Direct emissions – Scope 1 (tCO2e)	48,142	49,489	39,630

[GRI 302-2; GRI 305-3] Energy consumption and emissions by mail and charter transport

Energy consumption and emissions	2021	2022	2023
Total external Group energy consumption (GJ)	225,406	267,213	217,777

EMARKET SDIR
CERTIFIED

2023 Annual Report
Poste Italiane Group		Report on Operations at 31 December 2023
Indirect emissions – Scope 3 (tCO2 e)	16,333	19,387	15,796

Other direct emissions from logistics activities

Direct emissions	2021	2022	2023
(*) Total Fuel emissions from non-renewable sources – Scope 1 (tNOx)	175.33	120.55	87.66
atural gas	0 66	0 24	0 19
L G	0 44	0 14	0 02
Diesel	157 27	93 79	60 61
etrol (GJ)	16 96	26 38	26 85

(*) he emission factors used to convert fuels into O^x are as follows: natural gas 0 0155 t Ox/ J L G 0 0254 t Ox/ J Diesel for cars 0 2099 t Ox/ J, for light commercial vehicles 0 28 t Ox/ J, for heavy trucks 0 2721 t Ox/ J etrol for cars 0 0487 t Ox/ J, for light commercial vehicles 0 04 t Ox/ J, for motorcycles 0 0628 t Ox/ J ource: RA, database of average emission factors of road transport in taly

Direct emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 1 (tSO2) (*)	0.25	0.23	0.20
Diesel	0 18	0 13	0 08
etrol (GJ)	0 07	0 10	0 12

(*) he emission factors used to convert fuels into O² are as follows: diesel 0 0003 t O2/ J etrol 0 0002 t O2/ J ource: RA, database of average emission factors of road transport in taly

Direct emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 1 (VOC) (*)	100.70	147.85	132.44
atural gas	1 44	0 37	0 27
L G	0 64	0 19	0 02
Diesel	3 61	1 96	0 93
etrol (GJ)	95 01	145 33	131 22

(*) he emission factors used to convert fuels into VOC are as follows: natural gas 0 0225 tVOC/ J L G 0 0288 tVOC/ J Diesel for cars 0 0030 tVOC/ J, for light commercial vehicles 0 0047 tVOC/ J, for heavy trucks 0 0099 tVOC/ J etrol for cars 0 1998 tVOC/ J, for light commercial vehicles 0 1071 tVOC/ J, for motorcycles 0 6083 tVOC/ J ource: RA, database of average emission factors of road transport in taly

Direct emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 1 (PM10) (*)	18.46	14.40	11.23
atural gas	0 24	0 16	0 12
L G	0 24	2 95	0 01

EMARKE SDIR
CERTIFIED

2023 Annual Report Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

Diesel	7 40	6 07	4 22
etrol (GJ)	10 58	5 21	6 88

(*) he emission factors used to convert fuels into M10 are as follows: natural gas 0 0103 t M10/ J L G 0 0115 t M10/ J Diesel for cars 0 0164 t M10/ J, for light commercial vehicles 0 0159 t M10/ J, for heavy trucks 0 0150 t M10/ J etrol for cars 0 0123 t M10/ J, for light commercial vehicles 0 0110 t M10/ J, for motorcycles 0 0171 t M10/ J ource: RA, database of average emission factors of road transport in taly

Other indirect emissions from logistics activities

Indirect emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 3 (tNOx)	708.75	949.12	831.14
Diesel	708 75	949 12	829 62
atural gas	≃0 (*)	0 01	0 01
L G	0	0	0
etrol (GJ)	0	0	1 51

(*) he figure is close to 0, but still contributes to the total

Indirect emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 3 (tSO2)	0.66	1.12	1.00
Diesel	0 66	1 12	1 00
etrol (GJ)	0	0	≃0 (*)

(*) he figure is close to 0, but still contributes to the total

Indirect emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 3 (VOC)	21.55	29.25	31.09
Diesel	21 55	29 24	25 61
atural gas	(*) ≃0	0 02	0 02
L G	0	0	0
etrol (GJ)	0	0	5 46

(*) he figure is close to 0, but still contributes to the total

Indirect emissions	2021	2022	2023
Total Fuel emissions from non-renewable sources – Scope 3 (PM10)	26.52	51.16	47.12
Diesel	0 07	51 15	46 73
atural gas	0	0 01	0 01

L G	26 45	0	0
etrol (GJ)	0	0	0 38

Business Travel

Business Travel	2021	2022	2023(*)
Total emissions tCO2e	8,700	10,446	10,484
Automotive	8,036	9,205	8,466
etrol (GJ)	3,350	5,998	6,428
Diesel	4,686	3,207	2,038
rain	96	157	262
lane	568	1,084	1,756
nternational - short haul	79	124	211
international - long haul	27	91	208
ational (domestic)	462	869	1,337

(*) he target set for 2023 is 11,500 tCO2e n this regard, in 2023, in line with previous years, the Group's priority was to contain the natural increase in emissions due to business travel, dictated by the regular resumption of activities following the lifting of restrictions related to the pandemic from Covid-19, which in previous years had limited travel related to business trips

Employee commuting

Employee commuting	2021	2022	2023
Total emissions tCO2 e	32,940(*)	28,370(**)	29,329(***)

(*) he value of the polluting emissions generated by the home-work commutes indicated (2021 - 32,940 tCO2e) refers to the estimate of the polluting emissions generated by the home-to-work commutes of oste taliane employees applied in offices with over 100 resources located in municipalities with population over 50,000 inhabitants which, at present, amount to 146 located in 73 cities of the national territory, for a sample of about 39,348 total resources As a result of Law o 77 of 17/07/2020, the scope of the analysis has changed compared to 2020 when, instead, the observation was intended for the 38 offices with more than 300 employees located in 18 cities for a sample of 24,316 resources he 2021 analysis also took into account the Company's adoption of the agile working mode on the reduction of home-work kilometres travelled, applied to help contain the spread of the Covid-19 virus and taking into account the guidelines of the competent authorities, adopted by 80% of staff (12 5% of the company population) from January to eptember 2021 and by 50% in October-December 2021; the calculation was carried out excluding 17 cities for which the redemption rate of the questionnaire was not sufficient to allow an estimate of the pollutants emitted in the home-work commute t should be noted that, in implementation of the provisions of the aforementioned Act, the methodology applied is that proposed by the new M -M M Guidelines introduced in August 2021, which therefore differs from the methodology used for the 2020 analysis

(**) he value indicated refers to the estimate of the polluting emissions generated by the home-work commute of employees of oste taliane and all Group offices subject to the home-work commute analysis in 2022 (offices > 100 employees located in municipalities with a population over 50,000 inhabitants) which, at present, amount to 140 located in 77 municipalities of the national territory, for a sample of about 40,363 total resources his is due to the provisions of Law o 77 of 17/07/2020 he calculation also takes into account the impact of smart working on the reduction of home-work kilometres travelled (adopted for 50% of staff with 2 returns per week) Consistent with the provisions of Articles 18 et seq of Law no 81/2017 and the trade union agreements signed, this modality will continue, as of 01/04/2022, on the basis of individual agreements between the Company and the worker with 3 returns per week of the entire company staff population, (13% of the company population, 123,000 employees - ource RUO as of 01/02/2022) t should be noted that the methodology applied is that proposed by the new M -M M Guidelines

(***) he value indicated refers to the estimate of the polluting emissions generated by the home-work commute of oste taliane employees and refers to all oste offices subject to the home-work commute analysis in 2023 (offices > 100 employees located in municipalities with a population over 50,000 inhabitants) which, at present, amount to 135 located in 75 municipalities of the national territory, for a sample of 39,097 total resources his is due to the provisions of Law o 77 of 17/07/2020 he calculation also takes into account the impact of smart working on the reduction of home-work kilometres travelled he oste taliane Group regulates the performance of services in agile mode in accordance with the provisions of Articles 18 et seq of Law no 81/2017, the ational Collective Labour Agreement and the trade union agreements signed on the matter, which currently provide that this mode will remain in place until 31/12/2024 According to the current individual agreements between the company and the employee, mart Working can be carried out up to a maximum of 2 days/week and 9 days/month (14% of the company population: approx 121,000 employees ( ource: RUO as of 01/03/2023) (excluding employees working in the Customer ervice and Back Office of D O) t should be noted that the methodology applied is the one indicated by the M -M M Guidelines

Emissions financed Scope 3(*)
Emissions financed Scope 3	2021	2022	2023
Total absolute issues financed	6,641,823 42	8,541,519 64	9,489,429 95
Scope 3 (tCO2e) (**)
Weighted Average Carbon Intensity	153 41	155 53	119 58
(WACI) (tCO2e/€ million in
revenues) (***)

(*) he Group's cope 3 financed emissions input data (absolute emissions, WAC and relative breakdowns by industry and region) are produced and verified by Moody's rating agency he analysis in 2023 considered an amount of Assets under Management (AuM corporate issuers) amounting to €69,898,814,477 30 corresponding to 89 87% of the Group's total AuM (corporate issuers)

(**) Financed emissions: category of emissions associated with the Company's investments in the reporting year, currently not included in cope 1 and cope 2 emissions hese emissions are categorised as a downstream cope 3 category ( cope 3 Category 15, GHG rotocol) Absolute emissions: absolute greenhouse gas emissions associated with the company's portfolio, expressed in tonnes (***) Weighted average carbon intensity of a portfolio (WAC ) obtained by calculating the carbon intensity ( cope 1 + 2 emissions / mln €

revenue) for each company in the portfolio and calculating the weighted average for the weight of the company in the portfolio

Scope 3 financed emissions by country/geographical area

	2021		2022		2023
	Absolute	WAC	Absolute	WAC	Absolute	WAC
Emissions financed Scope 3	emissions	(tCO2e/ mln €	emissions	(tCO2e/ mln	emissions	(tCO2e/ mln €
	financed cope	revenues)	financed cope	€ revenues)	financed cope	revenues)
	3 (tCO2e)		3 (tCO2e)		3 (tCO2e)
Asia acific	252,081 79	12 97	60,643 85	5 21	194,184 63	4 82
urope	4,671,440 57	81 99	6,045,701 57	95 81	6,379,366 06	58 75
Middle ast Africa	111 58	0 10	37,248 02	0 38	12,409 58	0 10
orth America	1,025,890 23	30 46	1,243,038 83	31 10	1,411,819 95	34 85
Rest of the world	692,299 25	27 89	1,154,887 37	23 02	1,491,649 72	21 07
Total	6,641,823.42	153.41	8,541,519.64	155.53	9,489,429.95	119.58

Poste Italiane Group Report on Operations at 31 December 2023

Scope 3 financed issues by asset class

		2021		2022		2023
		Absolute	WAC	Absolute	WAC	Absolute	WAC
Emissions Scope 3	financed	emissions	(tCO2e/ mln €	emissions	(tCO2e/	emissions	(tCO2e/ mln €
		financed cope	revenues)	financed	mln €	financed cope	revenues)
		3 (tCO2e)		cope 3	revenues)	3 (tCO2e)
				(tCO2e)
Corporate bonds		5,645,549 91	130 40	7,260,291 70	132 20	8,160,909 76	102 84
quity		996,273 51	23 01	1,281,277 95	23 33	1,328,520 19	16 74
Total		6,641,823.42	153.41	8,541,519.64	155.53	9,489,429.95	119.58

Scope 3 financed emissions by sector/industry

	2021		2022		2023
	Absolute	WAC	Absolute	WAC	Absolute	WAC
Emissions financed Scope 3	emissions	(tCO2e/ mln €	emissions	(tCO2e/ mln	emissions	(tCO2e/ mln €
	financed cope	revenues)	financed cope	€ revenues)	financed cope	revenues)
	3 (tCO2e)		3 (tCO2e)		3 (tCO2e)
Aerospace	3,154 77	0 04	2,374 31	0 04	3,828 96	0 05
Vehicles	149,376 92	1 36	148,764 63	1 26	318,438 41	1 30
Drinks	18,442 14	1 00	30,608 39	1 07	27,846 37	0 82
Broadcasting and advertising	7,783 35	0 08	6,624 62	0 26	1,757 74	0 05
Building materials	382,375 95	9 63	1,402,793 80	20 46	1,274,645 35	17 42
Business support services	13,252 31	0 24	10,888 61	0 42	19,602 86	0 43
Chemicals	153,463 03	7 22	308,910 19	7 64	477,957 50	7 89
Banks for development	(*) 0	0 03	(*) 0	0 07	(*) 0	0 10
Diversified banks	65,109 01	3 15	40,505 42	2 51	41,483 04	1 36
lectricity and gas companies	2,748,944 62	59 37	3,208,045 28	58 42	3,484,026 56	39 20
Components and electrical equipment	3,905 16	0 16	2,488 58	0 15	4,461 10	0 18
nergy	1,729,556 19	27 84	1,672,150 10	22 45	1,675,507 67	14 30
Financial ervices - General	63,989 05	0 46	12,389 75	0 64	56,313 74	1 57
Financial ervices - Real state	17,057 29	3 67	21,899 28	3 55	29,108 96	2 60
Food products	25,405 53	0 56	27,654 61	1 26	37,395 57	0 86
Forest products and paper	55,153 93	1 25	48,998 53	1 09	39,239 30	0 85
anitary equipment and services	7,453 21	0 32	9,099 46	0 31	11,785 83	0 33
Heavy construction	12,989 40	0 18	16,049 10	0 19	36,979 33	0 21
Home construction	476 76	0 01	33 72	0 00	424 62	0 01
Hotels, goods and services for leisure time	19,183 07	1 76	64,624 04	3 34	118,762 24	2 86
ndustrial goods and services	48,126 29	0 58	41,952 74	0 70	35,048 44	0 49
nsurance	23,818 20	0 06	24,565 34	0 97	7,274 05	0 14
Local authorities	(*) 0	3 97	(*) 0	4 26	(*) 0	2 28
Luxury goods and cosmetics	3,808 25	0 17	3,081 19	0 24	5,269 08	0 21

2023 Annual Report
Poste Italiane Group					oste taliane's Financial tatements at 31 December 2023
Components and mechanical equipment	3,363 71	0 48	95,378 57	0 68	55,683 50	0 54
Mining and metals	362,885 73	13 58	326,478 03	7 23	509,181 26	5 28
Oil equipment and services	64,448 87	2 23	110,190 18	2 73	101,296 08	3 42
harmaceuticals and biotechnology	13,045 37	0 75	21,179 70	0 74	19,825 46	0 61
ublishing	84 72	0 01	84 59	0 00	159 20	0 01
Retail and specialised banks	2,946 01	0 55	9,140 55	0 62	15,513 01	0 39
oftware and services	5,659 01	0 55	1,946 88	0 49	8,432 62	0 79
pecialised retail trade	9,610 11	0 23	3,759 29	0 20	18,152 76	0 27
Banks and agencies for specific purposes	0 04	0 07	0 60	0 07	92 64	0 02
upermarkets	28,856 52	0 13	4,335 08	0 14	23,801 07	2 23
echnology-Hardware	26,502 77	1 58	10,218 49	1 06	27,984 25	1 12
elecommunications	99,666 46	1 48	116,766 88	1 94	149,060 76	2 03
obacco	6,138 19	0 21	6,339 14	0 30	4,962 21	0 23
ransport and logistics	48,245 96	3 35	17,278 18	2 52	59,103 96	2 17
ravel and tourism	175,989 23	2 64	543,356 50	3 12	515,991 19	2 72

(*) he value is 0 because the companies included in the industry reference industries do not have a market capitalisation and, consequently, the figure cannot be recorded

Waste and water 241,556 26 2 43 170,565 29 2 38 273,033 23 2 26 Total 6,641,823.42 153.41 8,541,519.64 155.53 9,489,429.95 119.58 Poste Italiane Group Report on Operations at 31 December 2023

Customer experience

Customer experience in Post Offices

Customer experience in Post Offices	2021	2022	2023
Average waiting time in ost Offices (minutes)	9 20	10 20	9 80
Customer served within 15 minutes (%)	81 27	78 30	79 10
Customer satisfaction with waiting times (1-10)	7 7	7 8	8 0
Customer satisfaction with overall post office experience	8	8 2	8 3
Customer complaints by type(*)
Post Offices	2021	2022	2023
Complaints received	6,476	10,336	9,103
Average response time (days)	16	40	26
Mail
Complaints received	46,054	36,042	28,708
Average response time (days)	17	29	15
Parcels
Complaints received	102,630	64,217	58,570
Average response time (days)	16	15	14
Financial Services
Complaints received	198,878	154,310	166,718
Average response time (days)	8	11	3
Insurance Services
Complaints received	5,102	5,065	9,097
Average response time (days)	30	23	28
nvestigations initiated by the nsurance Regulator	307	293	532
PosteMobile
Mobile telephone complaints received	5,922	1,934	851
Average response time (days)	2	3	2
Fixed line complaints received	1,767	515	425
Average response time (days)	4	5	2

(*) he figures on complaints relate to open cases requiring back-office intervention

Number of contacts handled(*)

Contact Centre	2021	2022	2023
umber of contacts handled (mln)	37	41	54

(*) he increase compared to the previous year is due to the A component, which has an impact of 44% of the total managed (vs 39% in 2022) n 2023, the A component includes calls handled through the VR self-service system for D credential retrieval (9 mln)

Customer satisfaction (*)

Satisfied customers (%)	2021	2022	2023(**)
atisfied customers following Customer xperience surveys (***)	82 2	83	83 8
Data coverage	100	100	100

(*) he customer experience of the business units is measured twice a year (May and October) through et romoter core surveys, which measure the recommendability of oste taliane's products and services hese are surveys using CA (Computer-Assisted elephone nterviewing) and CAW (Computer-Assisted Web nterviewing) methods that an external research institute carries out on samples of customers representative of the reference universe;

n terms of channels, the indicator used is the Customer ffort core (C ), which records the ease of access hese are CA (Computer-Assisted elephone nterviewing) measurements for customer service and CA (Computer-Assisted ersonal nterviewing) for post offices; he samples of customers that the external institute contacts are representative of the reference universe

(**) he target set for 2023 is 83 5%

(***) ercentage of Group customers who returned a vote greater than/equal to 7

Monthly complaints

Complaints	2021	2022	2023
Monthly complaints received	30,568	23,035	23,268

Business continuity plan resources(*)

Business continuity plan resources	2021	2022	2023
nvestments (€mln)	1 3	1 6	4 3
Drills	4	4	8
eople involved	240	269	318
Mainframe services (open services being processed) covered by plans of disaster recovery (%)	100	100	100

(*) he figures refer to oste taliane pA, oste ay pA and Banco osta Fondi pA GR, oste Vita pA, ostel pA

[GRI 418-1] Privacy violations and data leaks

Violations and data leaks	2021	2022	2023(*)
Complaints received regarding violations of privacy	41	29	46
Of which:
complaints received from third parties and recognised by the organisation	41	29	46
complaints received from regulatory bodies	0	0	0
Breaches, data theft and leaks of customer data identified	304	371	294

(*) n 2023, with respect to detected incidents of violation of privacy, in 29 cases, the competent internal function that investigated the breaches forwarded the files to the Human Resources function for appropriate action against the employees involved n the remaining cases, no sanctions were imposed on oste taliane staff because the violations occurred due to external attacks and/or human error

IT security and cyber security breaches

IT incidents and breaches	2021	2022	2023(*)
otal number of security breaches/cyber security incidents	195	83	48
otal number of security breaches involving the security of consumers	3	1	2
otal amount of fines /penalties paid in relation to security breaches and other		0
security incidents (€)	0		0

(*) he number of incidents is lower than in the previous year he causes of security incidents are mainly related to the increase in external attacks, in particular aimed at company employees with the aim of carrying out identity theft and consequently accessing company systems An increase in stolen laptops, with company data, was also revealed, probably attributable to increased mobility here was an increase in DDO -type attacks by pro-Russian groups, which did not lead to significant customer disruptions his was made possible by strengthening the perimeter posture through the activation of the Microsoft Front Door service for the publication of certain services on the nternet However, the Group launched a number of initiatives during the year aimed at reducing security incidents related to credential compromise, such as the large-scale implementation of user identity verification systems using 2-factor authentication systems

Number of customers whose data were used for secondary purposes

Customers whose data were used for secondary purposes (%)	2021	2022	2023
ercentage of customers whose data were used for secondary purposes (%)	0	0	0

Number of customers involved in IT security breaches

Customers involved in IT security breaches	2021	2022	2023
umber of customers involved in security breaches	175	17	94,726(*)

(*) With regard to the number of incidents, although these are lower in 2023 than in previous years, the number of customers involved in security breaches is higher his followed two specific incidents that occurred in 2023 in two Group companies For each breach, the ersonal Data rotection Authority was notified in accordance with current legislation, and the most appropriate security measures were identified and put in place to prevent similar incidents from reoccurring

nnovation

Number of digital services offered (figures in millions)

Digital offer	2021	2022	2023
Customers registered on oste taliane's digital channels (websites and apps)	33 8	36 8	39 0
Digital identities issued	21 2	23 8	24 0
ostepay apps downloaded	18 4	21 7	25 1
Banco osta apps downloaded	10 8	13 2	15 6
ost Office apps downloaded	12 2	14 7	16 7
oste D apps downloaded	24 1	30 2	34 7
ransactions carried out via consumer digital channels			183 7
(websites and apps)	124 7	152 6

Dematerialisation of procedures and corresponding transactions

		2021	2022		2023
		%	No.	%	No.	%
Type of procedures(*)		No. dematerialis Procedures	dematerialis	Procedures	dematerialis
	Procedures	ation		ation		ation
Certificates	1,584	94	1,811	97	2,456	100
Current accounts	586	96	535	96	424	96
avings Books	746	92	687	96	1,902	98
ostepay volution	2,137	98	1,749	99	1,265	98
Full Acquiring	11	9	14	100	11	91
Life insurance policies	520	97	726	67	756	97
on-life policies	250	93	256	96	238	100
MiF D	2,175	94	1,803	96	1,587	95
osteMobile	832	87	764	95	583	89
Guided consultation	1,512	94	1,388	89	1,585	97
Loans	417	91	460	96	512	99
rovisions	262	94	144	96	350	98
Total procedures	11,030	94	10,336	96	11,670	97

(*) Figures in thousands

Corresponding transactions	2021	2022	2023
otal transactions (€m)	27 7	26 9	30 4
otal electronic transactions (€m)	26 9	25 8	29 3
Dematerialised transactions (%)	96 9	95 9	96 3

Poste Italiane Group Report on Operations at 31 December 2023

ustainable finance

ESG products and services related to Asset Management (*)

Categories of environmental, social and governance	2022	2023
investment products and services offered (€)
nvestment products/options include the integration of G	244,029,168 87	3,473,925,974 74
criteria (**)
nvestment products/options applying best-in-class criteria	6,704,015,404 05	9,811,967,295 69
(***)
roducts/ nvestment options with thematic investments (****)	118,464,735 57	118,465,514 19
nvestment products/options linked to impact investing	0	0
activities (*)
Other (**)	0	1,002,485,000 48
Total AuM of environmental, social and governance	7,066,509,308.49	14,406,843,785.10
investment products
otal AuM in the asset management segment (*)	100,621,409,143 26	117,381,041,341 00
Percentage of environmental, social and governance
investment products out of total AuM in the asset	7.0	12.3
management segment (%)

(*) t is specified that with regard to the custody of sustainable investment products and services Banco osta Fondi GR does not offer its clients products not owned by the organisation and managed by third-party managers n this regard, the breakdown and classification of these in terms of Assets under Custody (AuC) is not reported

(**) he category includes products for which G factors are systematically included in analyses and investment decisions n 2023, the category included the products "B U V R O 60", "B U V R O 40", "B Universo ematico", " V Valore ostenibilità quilibrato", " V Valore ostenibilità Dinamico", " V Valore ostenibilità viluppo" and " V Obiettivo ostenibilità" With reference to 2023, the investment options referred to oste Vita and belonging to this category amount to €3,344,193,236 48

(***) he category includes products invested in sectors, companies or specific projects, selected for their positive G performance within their respective sectors of operation (so-called positive screening) n 2023, the following products were included in the category: "B Orizzonte Reddito", "B Azionario Flessibile", "B Azionario nternazionale", "B Azionario uro", "B elezione Attiva", "B Mix 1", "B Mix 2", "B Mix 3", "G oste Vita Valore olidità" and "Riserva Attivi pecifici" With reference to 2023, the investment options referred to oste Vita and belonging to this category amount to €3,472,510,110

(****) he category includes products whose investments are focused on issues or economic activities that contribute positively to certain environmental or social outcomes (e g clean energy, energy efficiency, etc ) n 2023, the following products were included in the category: "B Focus Ambiente 2027" and "B Focus Ambiente Marzo 2028"

(*****) he category includes products whose investments are made with the intention of generating a positive social and environmental impact, as well as a quantifiable financial return, in both emerging and developed markets

(******) he "Other" category includes products classified as Articles 8 and 9 in line with the requirements of U Regulation 2019/2088 (socalled U FDR Regulation) n 2023, the following product was included in the category: " oste nvesto ostenibile"

(*******) he value reported is the sum of the AVs of the managed funds

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

8. PROPOSED SHAREHOLDER RESOLUTIONS AND OTHER INFORMATION

8.1 PROPOSED RESOLUTIONS

he Board of Directors proposes that the hareholders' Meeting approve the 2023 draft financial statements of oste taliane pA (including Banco osta RFC's eparate Report), accompanied by the Directors' Report on Operations

n view of the current dividend distribution policy and as announced to the public in the press release of 29 02 2024, it is proposed to the Board of Directors to propose to the Ordinary hareholders' Meeting:

• to appropriate Banco osta RFC's profit for the year of €600,344,459 as follows:
  • to " rofit reserve" for €60,000,000;
  • available to oste taliane for possible distribution for €540,344,459
• to appropriate oste taliane pA's profit for 2023, amounting to €1,389,505,408, as follows:
  • to " rofit reserves" of Banco osta RFC for €60,000,000;
  • to reserve called "Retained earnings", share not available for distribution for €5,610,306163F ¹⁶⁴;
  • to the distribution to the hareholders, as a dividend, the amount of €0 800 for each ordinary shares in circulation on the ex-dividend date indicated above, excluding portfolio treasury shares on that date;
  • the remaining amount after the distribution to the hareholders, to the available reserve named "Retained arnings";
• to distribute the above dividend of €0 800 per share as follows:
  • the amount of €0 237 for each of the ordinary shares outstanding on the ex-dividend date, excluding treasury shares in portfolio, as interim dividend, already paid from 22 ovember 2023 for a total amount of €307,017,906;
  • the amount of €0 563 for each of the ordinary shares outstanding on 24 June 2024, the day scheduled as the exdividend date, excluding treasury shares in the portfolio on that date as balance of the dividend

8.2 OTHER INFORMATION

SIGNIFICANT EVENTS AFTER 31 DECEMBER 2023

vents after the end of the reporting period to which the 2023 Annual Report refers are described in other sections of this document Further information is provided in oste taliane Financial tatements for the year ended 31 December 2023

RELATED PARTY TRANSACTIONS

Details of the impact of related party transactions on the financial position and profit or loss are provided in oste taliane Financial tatements for the year ended 31 December 2023

SIGNIFICANT TRANSACTIONS

At its meeting of 14 December 2022, oste taliane pA's Board of Directors, having obtained the favourable opinion of the Related and Connected arties Committee issued on 13 December 2022, passed the Framework Resolution authorising financial transactions with the counterparty Cassa Depositi e restiti pA up to a maximum total amount of €2 billion and for a duration of one year starting from 1 January 2023 n particular, financial transactions relate to the spot purchase and sale of uro-government and/or talian government-guaranteed securities and repurchase agreements for lending and funding to be carried out within the limits of the " oste taliane Financial Management" Guidelines, the Banco osta Risk Appetite Framework and/or the resolutions of the Board of Directors Financial operations take the form

¹⁶⁴ he amount of €5,610,306 refers to the income not available for distribution recognised in profit or loss for the fair value measurement of Visa referred tock shares which - in application of Legislative Decree no 38/2005 - cannot be the subject of distribution until actually realised

of support activities for Banco osta ordinary operations and are therefore of an ordinary nature within the meaning of Consob regulations o transactions were carried out in 2023 to implement the Framework Resolution

At its meeting of 14 December 2022, oste taliane pA's Board of Directors, having obtained the favourable opinion of the Related and Connected arties Committee issued on 13 December 2022, passed the Framework Resolution authorising financial transactions with the counterparty M Capital ervices Banca per le mprese pA (now Banca Monte dei aschi di iena pA) up to a maximum total amount of €4 billion and for the duration of one year starting from 1 January 2023 n particular, financial transactions relate to the spot and forward purchase and sale of government and/or talian government-guaranteed securities, repurchase agreements for lending and funding, and hedging financial derivatives to be carried out within the limits of the oste taliane Financial Management Guidelines, Banco osta's Risk Appetite Framework and/or the resolutions of the Board of Directors Financial operations take the form of support activities for Banco osta ordinary operations and are therefore of an ordinary nature within the meaning of Consob regulations n 2023, three interest rate swap transactions were carried out to hedge interest rate risk, and two transactions to buy and sell government bonds for a total amount of €327 3 million in implementation of the Framework Resolution he transactions were concluded at market conditions

At its meeting of 14 December 2022, oste taliane pA's Board of Directors approved the signing of a framework agreement with the subsidiary, DA xpress Courier pA, for the management of domestic and international parcels, with an estimated maximum value of approximately €1,704 billion for the two-year term of the agreement from 1 January 2023 to 31 December 2024, net of VA and eventual fifth obligation n the absence of significant interests of other parties included in the Combined erimeter of related parties and connected parties of oste taliane pA, the transaction benefited from the exclusion from the application of the decision-making procedures of the Related and Connected arties Committee he Agreement was signed on 10 January 2023

oste taliane pA's Board of Directors, in its meeting of 29 March 2023, having obtained the favourable opinion of the Related and Connected arties Committee issued on 28 March 2023, approved the proposed Agreement between oste taliane A - Banco osta RFC and the Ministry of conomy and Finance, which regulates the remuneration of the use by the M F of deposits on postal current accounts in the name of persons other than private customers he Agreement, the value of which was estimated at €990 million over the reference time horizon (2 years), was finalised on 25 May 2023 On 1 June 2023, the relevant nformation Document was made available to the public at the Company's registered office, at Borsa taliana pA, on the Company's website, as well as on the website of the authorised storage mechanism "eMarket torage"

he Board of Directors of oste taliane pA, in the meeting of 3 May 2023, having acquired the favourable opinion of the Related arties and Connected ersons Committee issued on 2 May 2023, approved the operation concerning the amendment, for the years 2023 and 2024, of the Agreement between oste taliane pA - Banco osta RFC and Cassa Depositi e restiti pA governing the postal savings collection service he parties subsequently consolidated the terms of the amendment to the Agreement with reference to the terms applicable to the year 2023 only, and the Amendment Deed was finalised on 30 January 2024 he value of the Amended Agreement for the year 2023 is between €1 55 billion and €1 85 billion in total, while the total value of the Agreement for the period 2021 - 2024, as amended, is between €6 50 billion and €7 05 billion On 6 February 2024, the nformation Document relative to the transaction was made available to the public at the Company's registered office, at Borsa taliana pA, on the Company's website, as well as on the website of the authorised storage mechanism "eMarket torage"

At its meeting of 28 June 2023, oste taliane pA's Board of Directors, having obtained the favourable opinion of the Related and Connected arties Committee issued on 27 June 2023, approved the Renewal of the Ancillary Own Fund transaction in favour of oste Vita pA for a maximum amount of €1,750 million On 5 July 2023, the relevant nformation Document was made available to the public at the Company's registered office, at Borsa taliana pA, on the Company's website, as well as on the website of the authorised storage mechanism "eMarket torage" he contract was signed on 9 ovember 2023 with effect from 15 ovember 2023

On 19 June 2023, the subsidiary DA xpress Courier pA signed a new Master Commercial Agreement - a framework agreement for the provision of Full ruck Load (F L) transport services - with sennder talia rl, with a duration of 5 years starting from 1 July 2023 and an estimated value of €1 053 billion n the absence of significant interests of other parties included in the Combined erimeter of related parties and connected parties of oste taliane pA, the transaction benefited from the exclusion from the application of the decision-making procedures of the Related and Connected arties Committee On 1 July 2023, as a result of the overall renegotiation of the partnership with sennder ech, approved by oste taliane pA's Board of Directors on 30 May 2023, oste taliane pA's stake in sennder talia rl decreased from 60% to 25%

At its meeting of 13 December 2023, oste taliane pA's Board of Directors, having obtained the favourable opinion of the Related and Connected arties Committee issued on 12 December 2023, passed the Framework Resolution authorising financial transactions with the counterparty Cassa Depositi e restiti pA up to a maximum total amount of €2 billion and for a duration of one year starting from 1 January 2024 n particular, financial transactions relate to the spot purchase and sale of uro-government and/or talian government-guaranteed securities and repurchase agreements for lending and funding to be carried out within the limits of the " oste taliane Financial Management" Guidelines, the Banco osta Risk Appetite Framework and/or the resolutions of the Board of Directors Financial operations take the form of support activities for Banco osta ordinary operations and are therefore of an ordinary nature within the meaning of Consob regulations

At its meeting of 13 December 2023, the Board of Directors of oste taliane pA, having obtained the favourable opinion of the Related arties and Connected ersons Committee issued on 12 December 2023, passed the Framework Resolution authorising financial transactions with the counterparty Banca Monte dei aschi di iena pA up to a maximum total amount of €4 billion and for a duration of one year starting from 1 January 2024 n particular, financial transactions relate to the spot and forward purchase and sale of government and/or talian government-guaranteed securities, repurchase agreements for lending and funding, and hedging financial derivatives to be carried out within the limits of the oste taliane Financial Management Guidelines, Banco osta's Risk Appetite Framework and/or the resolutions of the Board of Directors Financial operations take the form of support activities for Banco osta ordinary operations and are therefore of an ordinary nature within the meaning of Consob regulations

he Board of Directors of oste taliane pA, in the meeting of 13 December 2023, having acquired the favourable opinion of the Related arties and Connected arties Committee issued on 12 December 2023, authorised the stipulation of the distribution agreement, for a three-year duration, between oste taliane pA - Banco osta RFC and oste Vita pA for the placement of insurance products he Distribution Agreement, which qualifies as a ransaction of Greater mportance in the ordinary course of business and on market- or standard-equivalent terms, has an estimated value of approximately €2,277 million for the total term of the agreement (1 January 2024 - 31 December 2026) he agreement was finalised on 30 January 2024

he statement of reconciliation of the arent Company's profit/(loss) for the period and quity with the consolidated amounts at 31 December 2023, compared with the statement at 31 December 2022, is included in oste taliane Financial tatements for the year ended 31 December 2023 ( otes to the oste taliane Group's financial statements – quity)

EXCEPTIONAL AND/OR UNUSUAL TRANSACTIONS

Under the definition provided by the CO OB ruling of 28 July 2006, the oste taliane Group did not conduct any exceptional and/or unusual transactions164F ¹⁶⁵ in 2023

ALTERNATIVE PERFORMANCE INDICATORS

n keeping with the guidelines published by the uropean ecurities and Markets Authority on 5 October 2015 ( MA/2015/1415), in addition to the financial disclosures required by the nternational Financial Reporting tandards ( FR ), oste taliane has included a number of indicators in this Report that have been derived from them hese provide management with a further tool for measuring the Group's performance he following alternative performance indicators are used:

WORK G CA AL: this indicator represents the sum of inventories, trade receivables and other receivables and assets, current tax assets, trade payables and other liabilities, and current tax liabilities his indicator is also shown separately for each trategic Business Unit

O -CURR A : this indicator represents the sum of property, plant and equipment, intangible assets and investments measured using the equity method

his indicator is also shown separately for each trategic Business Unit

V D CA AL: this indicator represents the sum of non-current assets and net working capital, deferred tax assets, deferred tax liabilities, provisions for risks and charges and severance pay his indicator is also shown separately for each trategic Business Unit

C 1 CA AL: consists of rimary ier 1 capital, as defined in Regulation ( U) no 575/2013, and includes the Capitalised arnings Reserve created upon appropriation of assets and the Retained arnings Reserves, taking into account the transitional regime

C 1 RA O: coefficient that expresses the adequacy of the primary tier 1 capital with respect to the weighted exposure to illar 1 risks (operational, credit, counterparty, exchange rate) t is the ratio of C 1 Capital to total Risk Weighted Assets (RWA)

COMB D RA O RO C O (net reinsurance): technical indicator of the on-Life business, determined as the ratio between the overall amount of costs incurred (claims and settlement expenses, net reinsurance expenses, attributable/non-attributable management expenses and other technical expenses and income) and gross insurance revenues

U D V D D (D ): represents the amount of dividends paid by the company for each outstanding share t is calculated as Dividends paid/ umber of shares outstanding

¹⁶⁵ uch transactions are defined as transactions that due to their significance/materiality, the nature of the counterparties, the purpose of the transaction, the manner of determining the transfer price and timing of the transaction may give rise to doubts over the correctness and/or completeness of the disclosures in the Financial tatements, over a conflict of interest, safeguards for the Company's financial position and protections for non-controlling shareholders

B ( arnings Before nterest and axes): this is an indicator of operating profit before financial expenses and taxation

B margin: this is an indicator of the operating performance and is calculated as the ratio of operating profit ( B ) to total revenue his indicator is also shown separately for each trategic Business Unit

B DA ( arnings Before nterest, axes, Depreciation and Amortisation): this is an indicator of operating profit before financial expenses and taxation, and depreciation, amortisation and impairments of non-current assets

FU D FROM O RA O (FFO): financial indicator represented by the Group's net result, adjusted for non-monetary costs and revenue (depreciation and amortisation, xpected Credit Loss - CL of receivables, financial expenses from discounting) and the net change in provisions for risks and severance pay n the Mail, arcels and Distribution BU, the indicator is also neutralised by the FR 16 effect (amortisation and financial expenses) and includes financial outlays for rents

LA RA : this is an indirect measure of customer loyalty t is based on redemptions during the period as a percentage of average mathematical provisions of the period

t is calculated as a percentage of redemptions/Average mathematical provisions (linearised over 12 months in the intermediate periodic situations)

L V RAG RA O: this is the ratio between otal Capital (Own Funds) and total assets, the latter including adjustments for derivatives and off-balance sheet exposures

O AL F A C AL A : they represent the amount of assets/liabilities managed or administered by the Group and are obtained from the sum of ostal avings collected by the arent Company in the name and on behalf of Cassa Depositi e restiti, deposits on postal current accounts, and assets managed by the subsidiary Banco osta Fondi pA GR, as well as the investments made on behalf of customers in investment products other than the above (equities, bonds, Moneyfarm products, etc ) and the nsurance echnical rovisions of the Life insurance business, which represent the obligations taken on vis-à-vis policyholders and tariff premiums net of loadings he presence within this indicator of nsurance echnical rovisions, calculated analytically contract by contract, in accordance with the application rules set out in Annex 14 of VA Regulation no 22 of 4 April 2008 (Mathematical rovisions), i e , in accordance with the principles for preparing the statutory financial statements of oste Vita pA, does not make it possible to perform a reconciliation with the insurance obligations presented in the financial information for the period

GROU D B /(FU D ): the sum of financial assets, tax credits under Law no 77/2020, cash and deposits attributable to Banco osta, cash and cash equivalents, liabilities under insurance contracts, assets for outward reinsurance and financial liabilities

his indicator is also shown separately for each trategic Business Unit

D B /(FU D ) OF H MA L, ARC L A D D R BU O RA G C BU U : this is the financial debt calculated according to the scheme recommended by MA uropean ecurities and Markets Authority ( MA32- 382-1138 of 4 March 2021) net of trade payables and other non-current payables with a significant implicit or explicit financing component and including the following items: non-current financial assets, tax credits under Law no 77/2020, current hedging derivatives assets, inter-segment financial receivables and payables

D B /(FU D ) OF H MA L, ARC L A D D R BU O RA G C BU U A R FR 16:

calculated as the net financial position of the Mail, arcels and Distribution ervices trategic Business Unit excluding the financial liabilities for leasing ( FR 16) and the fair value and cash flow hedge reserves

AV RAG OR FOL O R UR XCLUD G RO-AC V OR FOL O MA AG M (%): Yield portfolio average calculated as the ratio between interest income and average current account balances (excluding the value of pro-active portfolio management)

AYM A D MOB L RA G C BU U R V U OF RGY CO : this is an indicator of the operating performance of the ayments and Mobile trategic Business Unit, within which the new business involving the sale of electricity and natural gas is represented his indicator is calculated by subtracting the costs associated with the purchase of raw materials and the transport of electricity and gas from the revenue of the entire BU

RO (Return On quity): calculated as the ratio between the et result and the average value of the Group's " hareholders' equity" (net of fair value and cash flow hedge valuation reserves) at the beginning and at the end of the reporting period

RWA (Risk Weighted Assets): this indicator measures the risk exposure of assets in accordance with Basel regulations Risk-Weighted Assets, or RWA, are calculated by applying a weighting to assets that takes into account the level of exposure to credit, counterparty, market and operational risks

O AL A : otal assets in the tatement of Financial osition of Banco osta Ring-Fenced Capital - RFC

O AL CA AL (OW FU D ): consists, as defined by Regulation ( U) no 575/2013, of the sum of ier 1 capital, consisting of C 1 Capital and Additional ier 1 capital (A 1, which for Banco osta includes the hybrid instrument contributed by oste taliane), and ier 2 capital (not relevant for Banco osta)

O AL CA AL RA O: is the coefficient that expresses the adequacy of otal Capital (Own Funds) with respect to the weighted exposure to illar 1 risks (operating, credit, counterparty, exchange rate) Ratio of otal Capital (Own Funds) to otal Risk Weighted Assets (RWA)

R ( otal hareholder Return): it measures the total annual return for an investor and is calculated by adding the increase in the share price over a determinate period of time to the impact of dividends per share paid in the same period

AR G R HAR : calculated by dividing the Group's profit for the year by the weighted average number of oste taliane pA's ordinary shares in issue during the period

APPENDIX

RECLASSIFIED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

(€m)	2023	2022	Changes		4Q 2023	4Q 2022	Changes
Revenues	11,989	11,374	+615	+5.4%	3,186	3,060	+126	+4.1%
of which:
Mail, Parcels and Distribution Services	3,746	3,651	+95	+2.6%	991	1,003	(12)	-1.2%
Financial Services	5,229	4,939	+290	+5.9%	1,371	1,194		+178 +14.9%
of which pro-active management of the securities portfolio	158	335	(177)	-52.9%	(10)	(0)	(10)	n/s
Insurance Services	1,567	1,650	(83)	-5.0%	425	506	(82)	-16.1%
Payments and Mobile Services	1,447	1,134		+312 +27.5%	399	357		+42 +11.6%
Costs	8,558	8,209	+349	+4.2%	2,478	2,538	(60)	-2.4%
of which:
Total personnel expenses	5,170	4,823	+347	+7.2%	1,476	1,281		+195 +15.2%
of which ordinary personnel expenses	4,859	4,754	+105	+2.2%	1,262	1,222	+40	+3.3%
of which early retirement incentives	171	77		+94 +123.0%	165	60	105	n/s
of which disputes and other extraordinary items	140	(7)	+147	n/s	48	(1)	+49	n/s
Other operating expenses	3,388	3,386	+ 2	+0.1%	1,002	1,257	(255)	-20.3%
EBITDA	3,431	3,164	+266	+8.4%	708	522		+186 +35.7%
Depreciation, amortisation and impairments	811	769	+42	+5.4%	193	200	(7)	-3.4%
EBIT	2,620	2,396	+225	+9.4%	515	322		+193 +59.9%
EBIT margin %	21.9%	21.1%			16.2%	10.5%
Finance income/(costs)	107	37	+70	n/s	31	26	+ 5	19.9%
Gross profit	2,727	2,433		+295 +12.1%	546	348		+198 +57.0%
Taxes	794	850	(56)	-6.5%	135	204	(69)	-33.7%
Net profit	1,933	1,583		+350 +22.1%	411	144	+267	n/s
Net earnings per share (€)	1.48	1.21		+0.27 +22.2%	0.31	0.11	+0.21	188.1%
n/s: not significant

Reconciliation of Management Revenues with Financial Revenues

(€m)	2023	2022	Changes		4Q 2023	4Q 2022	Changes
Group operating revenues	11,989	11,374	+615	+5.4%	3,186	3,060	+126	+4.1%
Costs for raw materials, system charges and electricity and gas transport of the energy business for third-party customers	140	12	+127	n/s	65	11	+54	n/s
Group Accounting Revenues	12,128	11,386	+742	+6.5%	3,251	3,071	+180	+5.9%
n/s: not significant

Reconciliation of Management Operating Costs with Financial Operating Costs

(€m)	2023	2022	Changes		4Q 2023	4Q 2022	Changes
Group operating expenses	9,369	8,978	+390	+4.3%	2,671	+2,738	(67)	-2.5%
Costs for raw materials, system charges and electricity and gas transport of the energy business for third-party customers	140	12	+127	n/s	65	11	+54	n/s
Group accounting operating expenses	9,508	8,991	+518	+5.8%	2,736	2,749	(13)	-0.5%
n/s: not significant

CONTRIBUTION OF STRATEGIC BUSINESS UNITS TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS

31 december 2023	Mail, Parcels &	Financial	Insurance	Payments	Adjustments
(€m)	Distribution	Services	Services	and Mobile	and eliminations	Total
Total revenue	8,991	6,095	1,419	1,710	(6,227)	11,989
Revenue from third parties	3,746	5,229	1,567	1,447	-	11,989
Intersegment revenue	5,244	866	(148)	264	(6,227)	(0)
Total costs	9,033	5,232	59	1,271	(6,227)	9,369
Total personnel expenses	5,494	45	9	53	(431)	5,170
of which ordinary personnel expenses	5,184	45	9	53	(431)	4,859
of which early retirement incentives	171	0	0	0	-	171
of which disputes and other extraordinary items	139	0	0	0	-	140
Other operating expenses	2,649	106	20	663	(51)	3,388
Depreciation, amortisation and impairments	844	0	2	36	(71)	811
Intersegment costs	46	5,081	28	518	(5,674)	(0)
EBIT	(43)	863	1,360	440	-	2,620
EBIT MARGIN %	-0.5%	14.2%	96%	25.7%	-	21.9%
Finance income/(costs)	(5)	30	50	32	0	107
Gross profit	(48)	893	1,410	471	0.4	2,727
Taxes	(2)	246	417	134	-	794
Net profit	(46)	647	994	338	0	1,933

STATEMENTS OF PROFIT OR LOSS BY STRATEGIC BUSINESS UNIT

MAIL, PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT

Poste Italiane Group Report on Operations at 31 December 2023

	2023	2022		Changes		4Q 2022 Changes
(€m)
Revenue	8,991	8,512	+478	+5.6%	2,365	2,189	+176	+8.0%
Mail	2,070	2,066	+4	+0.2%	551	556	(6)	-1.0%
Parcels	1,395	1,395	+0	+0.0%	403	404	(1)	-0.3%
Other revenue	281	190		+91 +47.9%	38	43	(5)	-11.6%
Intersegment revenue	5,244	4,862	+383	+7.9%	1,374	1,187		+188 +15.8%
Costs	8,190	8,033	+157	+2.0%	2,360	2,464	(104)	-4.2%
of which:
Total personnel expenses	5,494	5,114	+380	+7.4%	1,545	1,351		+194 +14.4%
of which ordinary personnel expenses	5,184	5,046	+139	+2.7%	1,332	1,292	+40	+3.1%
of which early retirement incentives	171	76		+95 +125.1%	165	59	+106	n/s
of which disputes and other extraordinary items	139	(7)	+147	n/s	48	(0)	+48	n/s
Other operating expenses	2,649	2,880	(231)	-8.0%	795	1,104	(309)	-28.0%
Intersegment costs	46	39		8 +19.8%	20	9		+11 +115.1%
EBITDA	801	480		+321 +67.0%	5	(275)		+280 +101.8%
Depreciation, amortisation and impairments	844	805	+38	+4.8%	202	206	(4)	-2.0%
EBIT	(43)	(326)		+283 +86.9%	(197)	(481)		+284 +59.1%
EBIT margin %	-0.5%	-3.8%			-8.3%	-22.0%
Finance income/(costs)	(5)	17		(22) -131.1%	(10)	19	(29)	n/s
Gross profit	(48)	(309)		+261 +84.5%	(207)	(462)		+255 +55.3%
Taxes	(2)	52		(53) -103.7%	(38)	(17)		(21) -123.8%
Net profit	(46)	(361)		+315 +87.3%	(169)	(445)		+276 +62.1%
n/s: not significant

FINANCIAL SERVICES STRATEGIC BUSINESS UNIT

	2023	2022	Changes		4Q 2023	4Q 2022		Changes
(€m)
Revenue	6,095	5,759	+336	+5.8%	1,576	1,411		+165 +11.7%
Pro-active management of the securities portfolio	158	335	(177)	-52.9%	(10)	(0)	(10)	n/s
Net interest income	2,244	1,910		+334 +17.5%	569	528	+40	+7.7%
Postal savings deposits	1,740	1,600	+140	+8.7%	538	400		+138 +34.5%
Collection and payment services	764	763	+1	+0.1%	190	209	(18)	-8.8%
Distribution of loans and other third-party products	180	213	(33)	-15.4%	47	27		20 +72.8%
Asset management	144	119		+25 +21.2%	37	29		+8 +26.6%
Intersegment revenue	866	820	+46	+5.6%	205	218	(13)	-5.9%
Costs	5,232	4,872	+361	+7.4%	1,362	1,173		+189 +16.1%
of which:
Total personnel expenses	45	41		+4 +10.6%	10	10	+0	+0.6%
of which ordinary personnel expenses	45	40		+4 +10.1%	10	10	+0	+0.6%
Other operating expenses	106	73		+33 +45.5%	23	7	+16	n/s
Intersegment costs	5,081	4,757	+323	+6.8%	1,329	1,156		+173 +15.0%
EBITDA	863	887	(25)	-2.8%	214	239	(24)	-10.1%
Depreciation, amortisation and impairments	0.4	0.4	-0.1	-12.8%	0.1	(0)	0.2	n.s.
EBIT	863	887	(25)	-2.8%	214	239	(24)	-10.2%
EBIT margin %	14.2%	15.4%			13.6%	16.9%
Finance income/(costs)	30	(22)	+52	n/s	13	0	+12	n/s
Gross profit	893	865	+27	+3.2%	227	239	(12)	-5.1%
Taxes	246	243	+3	+1.1%	62	63	(1)	-1.5%
Net profit	647	622	+25	+4.0%	165	176	(11)	-6.4%
n/s: not significant

INSURANCE SERVICES STRATEGIC BUSINESS UNIT

(€m)	2023	2022	Changes		4Q 2023 4Q 2022		Changes
Revenue	1,419	1,502	(83)	-5.5%	393	468	(75)	-16.0%
Insurance revenues from insurance contracts issued	2,040	2,116	(76)	-3.6%	537	622	(86)	-13.8%
Costs for insurance services arising from insurance contracts issued	(632)	(528)	(103)	-19.6%	(175)	(149)	(26)	-17.4%
Insurance revenues/costs from reinsurance transfers	(5)	1	(6)	n/s	(2)	2	(3)	n/s
Income and expenses from financial and other operations	6,436	(1,545)	+7,981	n/s	3,022	1,580	+1,442	n/s
Net financial expenses/income related to insurance contracts issued	(6,367)	1,538	(7,905)	n/s	(2,990)	(1,560)	(1,430)	n/s
Net financial income/expenses related to reinsurance transferred	2	-	+2	-	1	-	+1	-
Net Life revenue	1,475	1,582	(106)	-6.7%	391	494	(103)	-20.8%
Insurance revenues from insurance contracts issued	510	340		+170 +50.0%	142	90		+51 +56.6%
Costs for insurance services arising from insurance contracts issued	(426)	(277)	(149)	-54.0%	142	90		+51 +56.6%
Insurance revenues/costs from reinsurance transfers	(10)	(9)	(1)	-15.9%	(112)	(82)	(30)	-36.9%
Income and expenses from financial and other operations	20	12		+8 +68.4%	(2)	(1)	(2)	n/s
Net financial expenses/income related to insurance contracts issued	(6)	1	(7)	n/s	7	4		+3 +85.3%
Net financial income/expenses related to reinsurance transferred	3	-	+3	-	(2)	0	(2)	n/s
Non-Life net revenue	90	67		+23 +34.1%	33	12	+21	n/s
Other operating income	2	1		+1 +81.3%	0	0		+0 +77.6%
Intersegment revenue	(148)	(148)	(0)	-0.1%	(32)	(39)		+7 +17.6%
Costs	59	48		+11 +23.9%	18	13		+6 +43.4%
of which:
Total personnel expenses	9	9	+0	+4.5%	1	3	(2)	-61.6%
of which ordinary personnel expenses	9	9	+0	+5.1%	1	3	(2)	-61.0%
of which early retirement incentives	-	0		(0) -100.0%	0	0		(0) -100.0%
Other operating expenses	20	7	+13	n/s	11	2	+9	n/s
Intersegment costs	28	29	(0)	-1.5%	6	7	(1)	-15.8%
EBITDA	1,362	1,458	(96)	-6.6%	375	455	(80)	-17.6%
Depreciation, amortisation and impairments	2	3	(2)	-45.9%	0	0		+0 +20.9%
EBIT	1,360	1,455	(94)	-6.5%	375	455	(80)	-17.7%
EBIT margin %	95.8%	96.8%			95.3%	97.3%
Finance income/(costs)	50	41		+9 +21.4%	18	5	+13	n/s
Gross profit	1,410	1,496	(86)	-5.7%	393	460	(67)	-14.7%
Taxes	417	445	(28)	-6.3%	84	124	(40)	-32.6%
Net profit	994	1,051	(57)	-5.5%	309	336	(27)	-8.0%
n/s: not significant

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT

(€m)	2023	2022		Changes				4Q 2022	Changes
Revenue	1,710	1,398		+313 +22.4%	467	420		+47 +11.2%
Electronic money	717	582		+135 +23.2%	198	178		+20 +11.3%
Other payments	381	233		+147 +63.2%	107	99	+8	+8.2%
TLC	331	319	+12	+3.8%	84	82	+1	+1.8%
Energy	17	(0)	+18	n/s	10	(2)	+12	n/s
Intersegment revenue	264	264	+0	+0.1%	68	62	+6	+8.9%
Costs	1,235	996		+239 +24.0%	336	300		+36 +12.0%
of which:
Total personnel expenses	53	35		+19 +53.7%	15	12		+3 +21.4%
of which ordinary personnel expenses	53	34		+18 +53.7%	14	12		+3 +22.4%
Other operating expenses	663	479		+184 +38.4%	179	158		+21 +13.2%
Intersegment costs	518	482	+36	+7.5%	142	129	+13	+9.7%
EBITDA	476	402		+74 +18.3%	131	120	+11	+9.2%
Depreciation, amortisation and impairments	36	23		+13 +58.8%	9	10	(2)	-17.9%
EBIT	440	379		+60 +15.9%	122	109		+13 +11.8%
EBIT margin %	25.7%	27.1%			26.2%	26.1%
Finance income/(costs)	32	1	+31	n/s	10	1	+9	n/s
Gross profit	471	380		+91 +23.9%	132	111		+22 +19.5%
Taxes	134	110		+23 +21.1%	27	33	(6)	-18.9%
Net profit	338	270		+68 +25.1%	105	77		+28 +36.1%
n/s: not significant

Reconciliation of Management Revenues with Financial Revenues

(€m)	2023	2022	Changes		4Q 2023	4Q 2022 Changes
Operating revenues from third parties Payments and Mobile	1,447	1,134		+312 +27.5%	399	357		+42 +11.6%
Costs for raw materials, system charges and electricity and gas transport of the energy business for third-party customers	140	12	+127	n/s	65	11	+54	n/s
Accounting revenues from third parties Payments and Mobile	1,586	1,147		+440 +38.4%	464	368		+96 +26.1%
Operating revenues from other Payments and Mobile sectors	264	264	+0	+0.1%	68	62	+6	+8.9%
Costs for raw materials, system charges and electricity and gas transport of the energy business for Group consumption	11	0	+11	n/s	10	0	+10	n/s
Accounting revenues from other Payments and Mobile sectors	275	264	+11	+4.2%	78	62		+16 +25.1%
Total Management Revenues Payments and Mobile*	1,710	1,398		+313 +22.4%	467	420		+47 +11.2%
Costs for raw materials, system charges and electricity and gas transport of the energy business (for third-party customers and Group consumption)	150	12	+138	n/s	75	11	+64	n/s
Total Accounting revenues Payments and Mobile	1,861	1,410		+451 +32.0%	542	430		+112 +25.9%

n/s: not significant

* This item represents the alternative performance indicator "SBU Revenues Payments and Mobile net of energy costs" mentioned in section 8.2 Other Information

Reconciliation of Management Costs with Financial Costs

(€m)	2023	2022	Changes		4Q 2023	4Q 2022	Changes
Total Operating Expenses Payments and Mobile	1,271	1,019		+252 +24.8%	344	310		+34 +11.0%
Costs for raw materials, system charges and electricity and gas transport of the energy business (for third-party customers and Group consumption)	150	12	+138	n/s	75	11	+64	n/s
Total Accounting Operating Expenses in Payments and Mobile	1,421	1,031		+390 +37.9%	419	321		+99 +30.7%

n/s: not significant

FINANCIAL POSITION

V D CA AL A D R LA D FU D G

(€m)	31 dicembre 2023	31 dicembre 2022		Changes
Tangible fixed assets	2,574	2,434	140	5.7%
Intangible fixed assets	2,062	1,817	245	13.5%
Right-of-use assets	1,265	1,334	(69)	-5.2%
Investments	294	267	27	10.2%
Non-current assets	6,195	5,852	343	5.9%
Trade receivables, Other receivables and assets and Inventories	7,714	7,444	270	3.6%
Trade payables and Other liabilities	(6,595)	(6,236)	(359)	-5.8%
Current tax assets/(liabilities)	(23)	80	(103)	n/s
Net working capital	1,096	1,288	(192)	-14.9%
Gross invested capital	7,291	7,140	152	2.1%
Provisions for risks and charges	(1,336)	(1,355)	19	1.4%
Employee termination benefits	(637)	(705)	68	9.7%
Prepaid/deferred tax assets/(liabilities)	1,208	1,787	(579)	-32.4%
Capitale investito netto	6,578	6,866	(288)	-4.2%
Equity	10,439	7,878	2,560	32.5%
of which profit for the period	1,933	1,583	350	22.1%
of which fair value reserve*	(960)	(2,716)	1,756	64.6%
Financial liabilities	95,393	103,644	(8,251)	-8.0%
Insurance contracts payable net of reinsurance	155,105	141,336	13,769	9.7%
Financial assets	(237,159)	(226,141)	(11,019)	-4.9%
Tax credits Law no. 77/2020	(8,318)	(9,021)	703	7.8%
Cash and deposits attributable to BancoPosta	(4,671)	(5,848)	1,177	20.1%
Cash and cash equivalents	(4,211)	(4,983)	772	15.5%
Net debt/(funds)	(3,861)	(1,012)	(2,849)	n/s
n/s: not significant
*Including the reserve for insurance contracts issued and reinsurance ceded
Mail, Parcels and 31 December 2023			Eliminations and

n/s: not significant

	Mail, Parcels and		Financial Services Insurance Services	Payments and	Eliminations and	Consolidated
(€m)	Distribution			Mobile	adjustments
Tangible fixed assets	2,515	1	16	42	0	2,574
Intangible fixed assets	1,268	-	145	649	(0)	2,062
Right-of-use assets	1,257	2	10	13	(17)	1,265
Investments	3,009	267	157	-	(3,138)	294
Non-current assets	8,049	269	328	704	(3,155)	6,195
Trade receivables, Other receivables and assets and Inventories	2,483	3,380	2,421	322	(892)	7,714
Trade payables and Other liabilities	(3,327)	(2,131)	(1,321)	(703)	887	(6,595)
Current tax assets/(liabilities)	(77)	(0)	(33)	87	-	(23)
Net working capital	(922)	1,249	1,067	(293)	(5)	1,096
Gross invested capital	7,127	1,518	1,396	412	(3,160)	7,291
Provisions for risks and charges	(1,130)	(164)	(17)	(25)	(0)	(1,336)
Employee termination benefits	(629)	(2)	(1)	(4)	-	(637)
Prepaid/deferred tax assets/(liabilities)	272	377	593	(33)	-	1,208
Non-current assets and disposal groups held for sale and
liabilities related to assets held for sale	-	-	50	-	-	50
Net invested capital	5,639	1,728	2,020	350	(3,158)	6,578
Equity	2,883	2,811	6,439	1,443	(3,138)	10,439
of which profit for the period	(46)	647	994	338	0	1,933
of which fair value reserve*	(281)	(544)	(136)	2	-	(960)
Financial liabilities	5,017	93,076	429	10,478	(13,606)	95,393
Insurance contracts payable net of reinsurance	-	-	155,106	-	(1)	155,105
Financial assets	(1,205)	(80,636)	(156,394)	(11,507)	12,582	(237,159)
Tax credits Law no. 77/2020	(407)	(7,912)	-	-	-	(8,318)
Cash and deposits attributable to BancoPosta	-	(4,671)	-	-	-	(4,671)
Cash and cash equivalents	(650)	(940)	(3,561)	(65)	1,004	(4,211)
Net debt/(funds)	2,755	(1,082)	(4,420)	(1,093)	(21)	(3,861)

*Including the reserve for insurance contracts issued and reinsurance ceded

31 December 2022	Mail, Parcels &			Payments and	Eliminations and
(€m)			Distribution Financial Services Insurance Services	Mobile	adjustments	Consolidated
Non-current assets
Tangible fixed assets	2,392	1	0	41	-	2,434
Intangible fixed assets	1,157	-	-	659	-	1,817
Right-of-use assets	1,326	2	11	14	(18)	1,334
Investments	2,986	262	157	-	(3,138)	267
Non-current assets	7,861	265	168	715	(3,156)	5,852
Trade receivables, Other receivables and assets and Inventories	2,486	3,154	2,561	291	(1,048)	7,444
Trade payables and Other liabilities	(3,513)	(2,048)	(1,033)	(686)	1,045	(6,236)
Current tax assets/(liabilities)	58	0	30	(9)	-	80
Net working capital	(969)	1,105	1,558	(404)	(3)	1,288
Gross invested capital	6,893	1,370	1,726	311	(3,159)	7,140
Provisions for risks and charges	(1,131)	(189)	(21)	(15)	-	(1,355)
Employee termination benefits	(699)	(2)	(1)	(3)	-	(705)
Prepaid/deferred tax assets/(liabilities)	285	933	610	(41)	-	1,787
Net invested capital	5,349	2,112	2,315	251	(3,159)	6,866
Equity	2,510	1,338	5,757	1,412	(3,138)	7,878
of which profit for the period	(361)	622	1,051.370	270	-	1,583
of which fair value reserve*	(282)	(2,094)	(343)	3	-	(2,716)
Financial liabilities	4,918	100,941	303	9,557	(12,074)	103,644
Insurance contracts payable net of reinsurance	-	-	141,337	-	(1)	141,336
Financial assets	(1,083)	(83,701)	(142,351)	(10,545)	11,539	(226,141)
Crediti d'imposta Legge n.77/2020	(420)	(8,601)	-	-	-	(9,021)
Cash and deposits attributable to BancoPosta	-	(5,848)	-	-	-	(5,848)
Cash and cash equivalents	(575)	(2,018)	(2,732)	(172)	515	(4,983)
Net debt/(funds)	2,839	773	(3,442)	(1,161)	(22)	(1,012)

*Including the reserve for insurance contracts issued and reinsurance ceded

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Changes 31.12.2023 vs 31.12.2022 (€m)	Mail, Parcels and Distribution		Financial Services Insurance Services	Payments and Mobile	Eliminations and adjustments	Consolidated
Non-current assets
Tangible fixed assets	123	(0)	16	1	0	140
Intangible fixed assets	111	-	145	(10)	(0)	245
Right-of-use assets	(69)	0	(1)	(1)	2	(69)
Investments	23	5	-	-	(0)	27
Non-current assets	187	5	160	(10)	1	343
Trade receivables, Other receivables and assets and Inventories	(4)	226	(139)	31	156	270
Trade payables and Other liabilities	186	(83)	(288)	(16)	(158)	(359)
Current tax assets/(liabilities)	(136)	(0)	(63)	96	-	(103)
Net working capital	47	144	(491)	111	(2)	(192)
Gross invested capital	234	148	(330)	101	(1)	152
Provisions for risks and charges	0	25	4	(10)	(0)	19
Employee termination benefits	69	(0)	(1)	(0)	-	68
Prepaid/deferred tax assets/(liabilities)	(13)	(556)	(18)	8	-	(579)
Attività non correnti e gruppo di attività in dismissione e
Passività associate ad attività in dismissione	-	-	50	-	-	50
Net invested capital	290	(383)	(295)	99	1	(288)
Equity	374	1,472	683	31	0	2,560
of which profit for the period	315	25	(57)	68	0	350
of which fair value reserve*	1	1,550	207	(1)	-	1,756
Financial liabilities	99	(7,865)	125	922	(1,532)	(8,251)
Insurance contracts payable net of reinsurance	-	-	13,769	-	0	13,769
Financial assets	(122)	3,064	(14,043)	(962)	1,044	(11,019)
Tax credits Law no. 77/2020	14	689	-	-	-	703
Cash and deposits attributable to BancoPosta	-	1,177	-	-	-	1,177
Cash and cash equivalents	(74)	1,078	(829)	108	489	772
Net debt/(funds)	(84)	(1,856)	(978)	68	1	(2,849)
*Including the reserve for insurance contracts issued and reinsurance ceded

KEY PERFORMANCE INDICATORS FOR PRINCIPAL POSTE ITALIANE GROUP COMPANIES

Poste Italiane SpA				Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	11,154,721	10,052,886	1,101,835	+11.0
Operating profit	1,528,465	1,076,180	452,285	+42.0
Net result	1,389,507	847,113	542,394	+64.0
Capital expenditure	780,444	750,722	29,722	+4.0
Equity	5,652,905	3,807,509	1,845,396	+48.5
Permanent workforce - average	108,135	108,405	(270)	-0.2
Flexible workforce - average	6,478	7,403	(925)	-12.5
Postel SpA				Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	200,719	186,299	14,420	+7.7
Operating profit	(2,508)	(4,389)	1,881	+42.9
Net result	(3,270)	(3,810)	540	+14.2
Capital expenditure	3,273	2,181	1,092	+50.1
Equity	78,286	81,640	(3,354)	-4.1
Permanent workforce - average	664	721	(57)	-7.9
Flexible workforce - average	42	64	(22)	-34.4
SDA Express Courier SpA				Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	1,107,221	1,072,384	34,837	+3.2
Operating profit	34,672	52,285	(17,613)	-33.7
Net result	18,701	34,963	(16,262)	-46.5
Capital expenditure	23,047	30,262	(7,215)	-23.8
Equity	42,614	59,556	(16,942)	-28.4
Permanent workforce - average	1,148	1,113	35	+3.1
Flexible workforce - average	39	63	(24)	-38.1

At 31 December 2023, the company declared dividends totalling €35 million.

Europa Gestioni Immobiliari SpA				Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	14,468	33,228	(18,760)	-56.5
Operating profit	2,347	7,244	(4,897)	-67.6
Net result	1,097	4,315	(3,218)	-74.6
Capital expenditure	342	882	(540)	-61.2
Equity	239,800	243,014	(3,214)	-1.3
Permanent workforce - average	23	24	(1)	-4.2
Flexible workforce - average	1	-	1	n/s

n/s: not significant.

At 31 December 2023, the company declared dividends totalling €4 million

Poste Italiane Group Report on Operations at 31 December 2023

Poste Air Cargo Srl			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	69,760	80,867	(11,107)	-13.7
Operating profit	1,791	4,671	(2,880)	-61.7
Net result	554	2,244	(1,690)	-75.3
Capital expenditure	-	-	-	-
Equity	6,527	7,040	(513)	-7.3
Permanent workforce - average	89	93	(4)	-4.3
Flexible workforce - average	1	4	(3)	-75.0
n/s: not significant
At 31 December 2023, the company declared dividends totalling €1 million.
BancoPosta Fondi SpA SGR		Changes

			Changes
(€k)	FY 2023	FY 2022	Values	%
Fee and commission income	173,427	144,415	29,012	+20.1
Net fee and commission income	68,021	64,102	3,919	+6.1
Net result	28,650	26,884	1,766	+6.6
Financial investments	73,700	68,949	4,751	+6.9
Equity	58,721	55,816	2,905	+5.2
Permanent workforce - average	85	77	8	+10.9
Flexible workforce - average	-	-	-	-

At 31 December 2023, the company declared dividends totalling €27 million.

Poste Vita SpA (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Insurance premium revenue	17,889,174	17,179,478	709,696	+4.8%
Net result	942,592	1,022,341	(79,749)	-7.8
Financial assets	155,366,569	141,776,300 13,590,269		+9.6
Liabilities under insurance contracts	154,156,806	140,712,594 13,444,212		+9.6
Equity	6,413,350	5,762,676	650,674	+11.3
Permanent workforce - average	369	350	1 9	+5.4
Flexible workforce - average	-	3	(3)	n/s
n/s: not significant.

n/s: not significant.

(*) The figures shown have been prepared in accordance with IFRS and therefore may not coincide with those in the Annual Report prepared in accordance with the Italian Civil Code and under Italian GAAP.

At 31 December 2023, the company declared dividends totalling €450 million

		Changes
FY 2023	FY 2022	Values	%
496,034	392,125	103,908	+48.2
54,178	41,745	12,433	+29.8
741,838	572,627	169,211	+29.5
353,891	265,083	88,808	+33.5
341,313	282,609	58,704	+20.8
108	91	1 7	+18.7
1	-	1	n/s

n/s: not significant.

(*) The figures shown have been prepared in accordance with IFRS and therefore may not coincide with those in the Annual Report prepared in accordance with the Italian Civil Code and under Italian GAAP.

PostePay SpA				Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	1,601,982	1,315,962	286,020	+21.7
Operating profit	418,670	366,502	52,168	+14.2
Net result	328,796	261,220	67,576	+25.9
Capital expenditure	15,284	20,181	(4,897)	-24.3
Equity	1,426,293	1,403,594	22,699	+1.6
Permanent workforce - average	358	315	4 3	+13.7
Flexible workforce - average	-	2	(2)	n/s
				-

n/s: not significant.

At 31 December 2023, the company declared dividends totalling €305 million

-

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

MLK Deliveries SpA			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	41,159	43,771	(2,612)	-6.0
Operating profit	1,320	975	345	+35.4
Net result	894	663	231	+34.8
Capital expenditure	63	334	(271)	-81.1
Equity	14,456	13,308	1,148	+8.6
Permanent workforce - average	31	34	(3)	-8.8
Flexible workforce - average	-	-	-	-
Plurima SpA (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	55,048	40,598	14,450	+35.6
Operating profit	2,742	4,086	(1,344)	(32.9)
Net result	(1,302)	1,735	(3,037)	n/s
Capital expenditure	2,897	1,728	1,169	+67.7
Equity	87,734	19,664	68,070	n/s
Permanent workforce - average	583	425	158	+37.2
Flexible workforce - average	222	153	69	+45.1

n/s: not significant.

(*) The figures shown for 2022 refer to the period of consolidation of the company within the Poste Italiane Group (01/04/2022 - 31/12/2022)

At 31 December 2023, the company declared dividends totalling €3 million

Net Insurance SpA (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Insurance premium revenue	85,032	-	n/s	n/s
Operating profit	6,483	-	n/s	n/s
Net result	13,286	-	n/s	n/s
Liabilities under insurance contracts	132,544	-	n/s	n/s
Equity	58,908	-	n/s	n/s
Permanent workforce - average	75	-	n/s	n/s
Flexible workforce - average	3	-	n/s	n/s
n/s: not significant.

(*) The figures indicated refer to the period of consolidation of the company within the Poste Italiane Group (01/04/2023 - 31/12/2023) and are prepared in accordance with IFRS international accounting standards. Therefore, they may not coincide with those contained in the Annual Report prepared in accordance with the Italian Civil Code and Italian accounting standards.

Nexive Network Srl			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	124,703	80,016	44,687	+55.8
Operating profit	5,237	1,134	4,103	n/s
Net result	2,965	225	2,740	n/s
Capital expenditure	-	-	-	-
Equity	10,994	8,242	2,752	+33.4
Permanent workforce - average	84	84	0	n/s
Flexible workforce - average	2	-	2	n/s
n/s: not significant.

Net Insurance Life SpA (*) (€k) FY 2023 FY 2022 Values % Insurance premium revenue 106,409 n/s n/s Operating profit 12,744 - n/s n/s Net result 9,111 - n/s n/s Liabilities under insurance contracts 278,982 - n/s n/s Equity 9,343 - n/s n/s Permanent workforce - average 22 - n/s n/s Flexible workforce - average - - n/s n/s Changes

n/s: not significant.

(*) The figures indicated refer to the period of consolidation of the company within the Poste Italiane Group (01/04/2023 - 31/12/2023) and are prepared in accordance with IFRS international accounting standards. Therefore, they may not coincide with those contained in the Annual Report prepared in accordance with the Italian Civil Code and Italian accounting standards.

Poste Italiane Group Report on Operations at 31 December 2023

LIS Holding SpA(*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	67,965	21,852	46,113	+2.1
Operating profit	17,827	4,229	13,598	+3.2
Net result	14,540	15,600	(1,060)	-0.1
Capital expenditure	9,762	4,936	4,826	+1.0
Equity	66,550	163,388	(96,838)	-0.6
Permanent workforce - average	142	47	95	+2.0
Flexible workforce - average	5	2	3	+1.5

n/s: not significant

(*) The figures shown for 2022 refer to the period of consolidation of the company within the Poste Italiane Group (01/09/2022 - 31/12/2022) At 31 December 2023, the company declared dividends totalling €27 million.

LIS Pay SpA (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	231,591	76,205	155,386	+2.0
Operating profit	38,340	12,453	25,887	+2.1
Net result	26,710	7,791	18,919	+2.4
Capital expenditure	1,770	345	1,425	+4.1
Equity	111,233	104,695	6,538	+0.1
Permanent workforce - average	77	27	50	+1.9
Flexible workforce - average	6	2	4	+2.0

n/s: not significant

(*) The figures shown for 2022 refer to the period of consolidation of the company within the Poste Italiane Group (01/09/2022 - 31/12/2022) At 31 December 2023, the company declared dividends totalling €20 million.

Sourcesense SpA (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	23,118	6,347	16,771	+2.6
Operating profit	528	297	231	+0.8
Net result	316	112	204	+1.8
Capital expenditure	1,700	244	1,456	+6.0
Equity	7,310	7,010	300	+0.0
Permanent workforce - average	55	14	42	+3.1
Flexible workforce - average	-	-	-	-

(*) The figures shown for 2022 refer to the period of consolidation of the company within the Poste Italiane Group (01/10/2022 - 31/12/2022)

Sengi Express Limited			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	144,500	115,175	29,325	+25.5
Operating profit	9,556	6,933	2,623	+37.8
Net result	7,923	6,987	936	+13.4
Capital expenditure	-	-	0	-
Equity	8,863	6,256	2,607	+41.7
Permanent workforce - average	-	-	-	-
Flexible workforce - average	1	-	1	n/s
n/s: not significant.

n/s: not significant. At 31 December 2023, the company declared dividends totalling €5 million

Agile LAB Srl (*)			Changes
(€k)	FY 2023	FY 2022	Values	%
Revenue from sales and services	13,774	1,613	12,161	+7.5
Operating profit	116	(1,589)	1,705	+1.1
Net result	73	(1,189)	1,262	+1.1
Capital expenditure	1,560	700	860	+1.2
Equity	4,496	4,355	141	+0.0
Permanent workforce - average	111	18	93	+5.2
Flexible workforce - average	-	-	-	-

n/s: not significant

(*) The figures shown for 2022 refer to the period of consolidation of the company within the Poste Italiane Group (01/10/2022 - 31/12/2022)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

9. CONSOLIDATED NON-FINANCIAL STATEMENT

9 1 R OR G A DARD A D OL C 9 2 H URO A AXO OMY R GULA O

9 3 GR - A DARD CO D X

INTRODUCTION

oste taliane's Consolidated on-Financial tatement ( F or " tatement") for 2023 has been drafted in line with the Group's G trategic lan which is based on 8 fundamental sustainability pillars attributable to environment, social and governance issues ( G) and has been designed with the aim of generating long-term value for stakeholders

n addition to ensuring compliance with the provisions of the talian Legislative Decree no 254/2016 ("Decree") through the information contained in this Chapter, conformity with the law requirements is also ensured by providing references to other sections of the Annual Report and to other company documents, when the information is already contained therein or to which reference is made for additional clarifications n particular:

• the corporate management and organisation model is illustrated in chapter 4 " oste taliane Group and its Business Model" and in the paragraphs " ntegrating ustainability into oste taliane's trategy" and " oste taliane's ntegrated nternal Control and Risk Management ystem", which describes the way in which the organisation, thanks to business activities, generates results aimed at achieving strategic objectives and creating value in the short, medium and long term;
• risk management, implemented through the Group Risk Management (RMG) model based on the nterprise Risk Management ( RM) framework, is described in the paragraphs "Relevant ustainability opics for oste taliane" and " he nternal Control and ntegrated Risks of oste taliane", which describes in-depth and in greater detail the main non-financial risks associated with the material topics, the possible impacts and the related management methods;
• company policies are described in the paragraph " he Group's sustainability policies" and set out the general principles and rules of conduct on which all of oste taliane's activities must be based n addition, the chapter 7 "Value Creation" provides information, with regard to each material topics, on the related strategic objectives and the operating processes used to deliver on them;
• performances are illustrated in the paragraphs of the chapter 7 "Value Creation", which describes the main initiatives for the year, and in the paragraph " ndicators tables", which shows the results achieved in the last three years

9.1 REPORTING STANDARDS AND POLICIES

oste taliane's Consolidated on-financial tatement ( F ) has been prepared in compliance with talian Legislative Decree 254/2016 and in accordance with the most widely used international standards: the Global Reporting nitiative's GR tandards in accordance with the 2021 update of

the Universal tandards published by the Global Reporting nitiative (GR ) Furthermore, within the 2023 F , for purposes other than that of complying with the requirements of Legislative Decree 254/2016, additional K s were integrated specific to the sector in which the Group operates, taking into consideration the indicators published by GR - Financial ervices and the ustainability Accounting tandards Board ( A B) hese indicators are clearly identified in the table on pages

476-477 and are to be considered additional to the disclosure prepared in accordance with the GR tandards to meet the requirements of Legislative Decree 254/16 is not established

he tatement is included in the Report on Operations, which in turn is contained in the 2023 Annual Report and constitutes oste taliane's ntegrated Report, prepared in accordance with the principles included in the " nternational Framework", published by the nternational ntegrated Reporting Council ( RC)

he F was approved by oste taliane pA's Board of Directors on 19 March 2024, pursuant to art 3, paragraph 10 of the Decree he F , with the exception of disclosures relating to A B, W F, CFD and DGs requirements, as well as disclosures relating to the process of determining "financial materiality" and related outputs, carried out in anticipation of the requirements of the Corporate ustainability Reporting Directive (C RD), with the aim of carrying out an exercise to apply the concept of dual materiality (as defined in Chapter 5 " trategy"), was subjected to a "limited assurance engagement" conformity assessment according to the criteria indicated in the " nternational tandard on Assurance ngagements A 3000 Revised-Assurance ngagements Other than Audits or Reviews of Historical Financial nformation", issued by the nternational Auditing and Assurance tandards Board ( AA B) by Deloitte & ouche pA, which expresses its opinion by means of the "Report of the ndependent Auditors" reproduced below in the document

n order to define the contents of the F and thus identify the material issues to be included in the Group's ustainability trategy, oste taliane continued with the approach started in 2021 and subsequently refined in 2022, aimed at anticipating the exercise of the principle of double relevance envisaged by the Corporate ustainability Reporting Directive (C RD) before its entry into force, set for FY 2024 he degree of detail with which material topics are treated in the reporting was determined on the basis of the significance of the related impacts, determined through the aforementioned materiality analysis process, which involved top management and the Group's stakeholders through specific engagement activities (for more information, please refer to the section ' riority ustainability ssues for oste taliane')

For each material topic, the company's management and organisational model, policies including due diligence policies, the results achieved through them and some non-financial performance indicators, as well as the related impacts on the economy, environment and people, including human rights impacts and how these impacts are managed, were reported

Key erformance ndicators are collected on an annual basis; indicators reported refer to 2023, and where available to the 2021-2023 period as well he qualitative and quantitative information comes from the Group's corporate information systems and from a non-financial reporting system specifically implemented to meet the requirements of the Decree he data is based on punctual calculations and, where specifically indicated, on estimates n particular, the estimated data regard certain items relating to energy consumption inside and outside the organisation - data regarding electricity consumption (for security purposes and relating to outsourced Data Centres), natural gas, diesel, L G and district heating for the Group's real estate facilities - and water consumption, which was calculated on the basis of the costs incurred and the average tariff payable Consumption linked to logistics is estimated in terms of distance travelled and/or average consumption of the means and the transported load, except for motor vehicles used in last mile logistics Moreover, it should be pointed out that in this document the figures in millions of uro have been rounded up or down, so the sum of the rounded amounts may not add up to the rounded total During the period, following the update of the oste taliane Business lan, the Group's targets and objectives were updated

In addition, it should be noted that Poste Italiane will have to apply the new Corporate Sustainability Reporting Directive (CSRD) from the financial year beginning on January 1st, 2024. In this regard, in 2023 the Group launched a mapping of the information requirements provided by the CSRD and the European Sustainability Reporting Standard (ESRS) in order to identify the information to be supplemented by the Group with regard to the financial year 2024 and to define an action plan to ensure compliance with the new legislation.

All GR tandards indicators reported are shown in the GR Content ndex of this section starting on page 522

All the data refer only to the companies consolidated using the line-by-line method for financial reporting, as indicated in the table "Consolidation scope and key data of equity investments" ( ote 13 - pages 866-867) xceptions to this scope are explicitly indicated within the document n addition, each reported indicator always has a coverage equal to the total of the information request, net of explicit specification he terms oste taliane, Group or Company are used in the F to refer to the " oste taliane Group"

n addition, content related to the F , as previously mentioned, is also indicated to make it easily identifiable, by this infographic:

9.2 THE EUROPEAN TAXONOMY REGULATION

With the aim of consolidating the uropean Union's commitment to the issues of environmental and social sustainability, in June 2020, in the Official Journal of the uropean Union the U Regulation no 2020/852 (so-called axonomy Regulation) was published, which establishes the criteria through which it is possible to determine whether an economic activity can be considered environmentally sustainable he axonomy Regulation was introduced with the aim of establishing a unified classification system for sustainable activities and to establish through a common language a clear definition of what can be considered 'green' n this sense, the uropean Commission reinforces its commitment to a rapid transition to a modern and competitive economy that is resilient to climate change, resource efficient and in line with the U ustainable Development Goals ( DGs) and the uropean Green Deal herefore, the identification of a unified classification system based on harmonised criteria at U level is the most significant action taken by the Commission in the context of the sustainable growth strategy and aimed, among other objectives, at boosting the contribution of the financial sector in supporting the U's climate and sustainable development agenda

he U Regulation no 2020/852, therefore, establishes the basis of the axonomy, the environmental objectives and the ways in which an economic activity can be defined as eco-sustainable, and identifies itself at a uropean level as a tool able to support, on the one hand, companies in the assessment of their activities, in the adoption of environmental sustainability policies and more complete and comparable reporting methods, and on the other, investors in the integration of sustainability issues within investment policies and public institutions in the definition and improvement of their own policies of ecological transition

Furthermore, the axonomy Regulation provides market participants with an unambiguous definition of sustainable assets to use in their decision-making processes favouring at the same time the transparency of financial markets with respect to sustainability issues in terms of investment choices and providing investors with adequate information to steer capital flows towards sustainable choices

n compliance with the requirements of the axonomy Regulation, companies subject to the obligation to publish a nonfinancial statement must provide information on how and to what extent their business activities are 'eco-sustainable'

ursuant to art 3 of U Regulation no 2020/852, an economic activity is defined as eco-sustainable, and therefore aligned with the U axonomy, if it complies with the following criteria:

• contributes substantially to the achievement of one or more of the six environmental objectives defined in the regulation;
• does not cause significant harm to other environmental objectives (Do ot ignificant Harm D H);
• is carried out in compliance with minimum safeguards;
• complies with the technical screening criteria set by the uropean Commission in relation to the defined environmental objectives

n this regard, the uropean Commission has defined a set of requirements (so-called technical screening criteria) that must be met by operators carrying out economic activities impacting on the axonomy objectives ndeed, with reference to each of the following environmental objectives, the Commission has issued a technical annex to identify the economic activities that are potentially able to contribute to the reference objective, as well as to determine the conditions for substantial contribution and compliance with the D H principle

n the course of 2023, the uropean Commission published the U Delegated Regulation o 2023/2486 ( axonomy nvironmental Delegated Act), which complements the axonomy Regulation by setting technical screening criteria to determine under which conditions an economic activity can be considered to contribute substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to the prevention and reduction of pollution, or to the protection and restoration of biodiversity and ecosystems, and if it does not cause significant harm to any other environmental objective his delegated act also amends the U Delegated Regulation o 2021/2178 ( axonomy Disclosure Delegated Act), in particular with respect to the correction of certain inaccuracies in the text, as well as the updating of the templates provided for the reporting of financial and non-financial companies

Furthermore, in the same year, as part of the climate change mitigation and adaptation objectives, the uropean Commission published U Delegated Regulation o 2023/2485, supplementing U Delegated Regulation o 2021/2139 ( axonomy Climate Delegated Act), which identifies the technical screening criteria in relation to the first two climate objectives n particular, Annex (climate change mitigation objective) was supplemented with new economic activities related to the manufacturing and aviation sectors, while Annex (climate change adaptation objective) was supplemented with new economic activities within the civil engineering and disaster risk management sectors Also, changes and additions were made to the criteria for technical screening and D H of certain economic activities already present in both Annexes

ursuant to the amendments introduced to ection 10 of the axonomy Disclosure Delegated Act, for the current financial year, in relation to both the economic activities associated with the last four environmental objectives and the new economic activities introduced in Annexes and by the amendment to the axonomy Climate Delegated Act, companies are only required to perform the eligibility analysis

herefore, in compliance with the provisions of the aforementioned Delegated Regulation, which describes the content, methodology and manner of presentation of the so-called 'key performance indicators' or 'K s' to be reported and the qualitative information that must accompany them:

• for the current reporting year, on Financial Undertakings are required to report the percentage of their urnover, Capital xpenditure (Cap x) and Operating xpenditure (Op x) associated with economic activities eligible for the six targets, as well as aligned for the first two climate targets - excluding only for this year, the new economic activities introduced in 2023 - and as of Fiscal Year 2024 also for the remaining environmental targets;
• for the current reporting year, Financial Undertakings are required to report the share of investments/financing associated with economic activities eligible for the six targets, as well as aligned for the first two climate targets excluding only for this year, new economic activities introduced in 2023 - and as of Fiscal Year 2025, also for the remaining environmental targets

URO A AXO OMY: M HODOLOG CAL A ROACH O H R OR G ROC

n order to provide a clear and representative disclosure of the Group's business profile, actively contributing to the achievement of the uropean Union's sustainable development objectives, oste taliane has adopted a transparent methodological approach, which includes a careful analysis of the Group's economic activities, as well as the regulatory framework of reference

For this reason, oste taliane has provided for a reporting method that allows providing evidence of both industrial operations ( on Financial Undertakings) and financial operations (Financial Undertakings) n particular, pursuant to the regulations in force on the reporting methods of mixed groups, oste taliane has deemed it appropriate to pursue a dual reporting method: within this document, in fact, disclosure is provided on a consolidated basis of the K s envisaged for the on Financial Undertakings, and of the K s envisaged by the regulations, and deemed to be more representative of the financial and insurance business of the oste taliane Group, for the Financial Undertakings his reporting method allows the Group to contribute to completing the information framework both for investors and, more generally, for oste taliane's stakeholders, allowing them to have disclosures consistent with the regulatory provisions in force

Following the analysis of the regulations and related developments, the process of reporting on the disclosure requirements of the axonomy Regulation involved the identification, assessment and consolidation of the qualitative and management and/or accounting information necessary for the related calculation of the indicators representing alignment and eligibility

n particular, with reference to industrial operations and in compliance with the reporting obligations arising from the most recent regulatory developments, a primary qualitative analysis was conducted with reference to the eligibility of potential economic activities associated with the environmental objectives of sustainable use and protection of water and marine resources, transition to a circular economy, prevention and reduction of pollution, and protection and restoration of biodiversity and ecosystems, as well as new economic activities associated with the objectives of mitigation and adaptation to climate change, introduced in 2023 Following this, it was possible to identify the set of economic activities eligible for the axonomy and, on the basis of the analyses of their substantial contribution to the respective objective and the reference D H, the activities contributing to the definition of the aligned K s were identified

his process involved numerous functions of the Group that owns the data, requiring the participation of the main corporate business structures for the identification of the eligible activities aligned with the axonomy, in compliance with the ecosustainability criteria associated with the individual economic activities being evaluated, as well as the connected management of the data collection process

With regard to the performance indicators representative of the Group's financial and insurance operations, it was deemed appropriate to request the support of an external provider for the purpose of obtaining certain data necessary for the calculation of the K s of the Financial Undertakings n this regard, with the aim of guaranteeing a correct reconciliation between the results obtained and the economic and financial figures described within the financial reporting and in order to carry out the due admissibility and alignment analyses following the receipt of the data instrumental to the calculation of the performance indicators by the external provider, the analysis and data collection process was accompanied by the

Furthermore, in relation to the axonomy alignment analyses carried out for this financial year, pursuant to art 3 letter c) of U Regulation no 2020/852, the Group carried out its economic activities in compliance with the minimum safeguard guarantees (so-called social minimum safeguards) outlined by the Art 18 paragraph 1 of the Regulation itself, thus adopting procedures compliant with the guidelines of the Organisation for conomic Co-operation and Development (O CD) intended for multinational companies and with the United ations guiding principles on business and human rights, with reference to the principles and rights set out in eight of the ten fundamental conventions identified in the nternational Labour Organisation ( LO) Declaration on Fundamental rinciples and Rights at Work and in the nternational Bill of Human Rights

n particular, for the verification of compliance with the minimum safeguards, the oste taliane Group took into consideration the four areas of application identified by the latform on ustainable Finance165F ¹⁶⁶, namely: Human Rights; Corruption; axation; Competition n this regard, for more information with respect to the due diligence and remedial procedures implemented by the Group in the performance of its business activities with reference to Human Rights, please refer to the following in-depth sections of this document:

• " trategy he Group's sustainability policies";
• " oste taliane's commitment to managing human rights risks";
• " ntegrity and transparency Legality and incorporation of G criteria within the procurement process";
• "Diversity and inclusion rotection of human rights at the Company"

constant supervision of the Administration, Finance and Control function

With regard to the other three areas of application - Corruption, axation and Competition - please refer to the following indepth sections: " trategy - he Group's ustainability olicies"; " ntegrity and ransparency - Working with ransparency and ntegrity"

Furthermore, with reference to Art 18 para 2, the Regulation stipulates that, in addition to disclosing whether the sustainable investment is aligned with the O CD Guidelines for Multinational nterprises and the U Guiding rinciples, account must be taken of the indicators of the main negative effects set out in the FDR (so-called rinciple Adverse mpact - A ) related to social and personnel issues, respect for human rights and issues related to the fight against active and passive corruption n this regard, also in line with regulatory developments, oste taliane considers these indicators as part of its investments at the overall portfolio level, as reported in the A tatement, to which reference should be made for further details

¹⁶⁶ "Final Report on Minimum afeguards", published by the latform on ustainable Finance in October 2022

CO- U A ABL BU AC V OF O AL A

he indicators required by the regulations for on-Financial Undertakings are shown below, which, in order to avoid any potential risk of double counting, have been calculated on a consolidated basis, net of intra-group items, thus considering the same scope of consolidation as the consolidated financial statements

n line with the regulatory requirements concerning the manner in which the key performance indicators for on-Financial Undertakings, presented in table form are respectively the share of turnover, of capital expenditure (Capex) and operating expenditure (Opex) arising from products or services associated with aligned, eligible but not aligned and non-taxonomy eligible economic activities

Furthermore, it is specified that, with reference to the information pursuant to art 8, paragraphs 6 and 7 of the U Delegated Regulation no 2022/1214, which provides for the use of the templates provided in Annex X for the communication of activities related to nuclear power and fossil gases (connected to activities from 4 26 to 4 31), the template is shown below16F ¹⁶⁷ referred to in Model 1

Model 1 - Nuclear and Fossil Gas Activities

Row	Nuclear energy related activities
1.	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.	No
2.	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies.	No
3.	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades.	No
	Fossil gas related activities
4.	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels.	No
5.	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels.	No
6.	The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels.	No

¹⁶⁷ t should be noted that, with regard to the Financial Undertakings indicators, for this financial year, as no precise information was available on exposures related to the nuclear and fossil gas sectors, it was not possible to compile the templates provided in Annex X

UR OV R K s

With reference to the present year, the share of urnover derived from economic activities that are aligned, eligible but not aligned, and ineligible for the axonomy was identified, as shown in able 1: Share of turnover derived from products or services associated with economic activities aligned with the taxonomy - Disclosure for the year 2023.

he share of turnover associated with economic activities aligned with the taxonomy is 1 1%, while the share of eligible but non-aligned economic activities is 9 9%; thus, the share of non-eligible turnover is equivalent to 89%

he K s reported here refer to the revenues associated with the trategic Business Units 'Mail, arcels and Distribution' and ' nsurance ervices', of which delivery and transport by vehicles, air transport of goods, and premiums on non-life policies for the underwriting of climate-related perils were taken into account, respectively

n particular, in light of regulatory developments and the inclusion among the economic activities envisaged by the axonomy of those relating to the air transport of passengers and goods, with particular reference to the activities "6 18 Leasing of aircraft", "6 19 assenger and freight air transport" and "6 20 Air transport ground handling operations", these economic activities have been analysed in order to trace back to them the revenues generated by oste Air Cargo's air transport service, which fall within the scope of the Group's overall turnover On the basis of the specific characteristics of the revenues associated with oste Air Cargo, it was therefore possible to attribute them exclusively to the economic activity "6 18 Leasing of aircraft" herefore, only with reference to the calculation of the share of ligible urnover, as provided for in the Regulation for this reporting year, were the revenues determined as generated by the transport of goods by aircraft operated through leasing and chartering contracts

n this regard, the numerator value of this K mainly refers to:

• revenues associated with "6 6 Freight transport services by road" that contribute to the environmental objective of climate change mitigation;
• revenues associated with "6 18 Leasing of aircraft", which contribute to the environmental objective of climate change mitigation;
• revenues associated with "10 1 on-life insurance: underwriting of climate-related perils", which contribute to the environmental objective of adapting to climate change

he economic activities assessed against the eco-sustainability criteria of the axonomy Regulation and the associated technical screening criteria were found compliant with the alignment analyses n particular, with reference to the revenues associated with "6 6 Freight transport services by road", the urnover was assessed as generated by the Group's fleet167F 168 , whose conformity assessment found a substantial contribution to the climate change mitigation objective compared to 1 category vehicles, which have zero direct (tailpipe) CO² emissions n this regard, in line with previous years, in order to relate the Group's revenues to the urnover category subject to the eligibility and alignment analyses of road haulage services, a weighting driver was adopted based on the number of green vehicles compared to the Group's total fleet, taking into account the industrial cost associated with them herefore, on the basis of these variables, which contribute, therefore, to the formation of the revenues of the 'Mail, arcels and Distribution' BU, it was possible to determine the portion of urnover attributable to the admissible revenues and aligned to the axonomy n the course of 2023, the number of such vehicles within the eligible and non environmentally sustainable, as well as aligned168F ¹⁶⁹, increased significantly, leading to a corresponding increase in the eligible and aligned urnover pecifically, in 2023, the eligible but not environmentally

¹⁶⁸ ee ote C1 'Revenue from mail, parcels and other' in the Consolidated Financial tatements

¹⁶⁹ n particular, with reference to vehicles in the 1 category that have zero direct (tailpipe) CO² emissions, the increase recorded made it possible to consider around 2,800 vehicles belonging to the Group's fleet

sustainable share increased to €1,179 million, while the aligned share increased to €136 million n addition, the assessment of compliance with Art 3 of the axonomy Regulation and the technical screening criteria verified that these activities do not significantly harm the objectives of climate change adaptation, transition to a circular economy and pollution prevention and reduction

With regard to urnover associated with "10 1 on-life insurance: underwriting of climate-related perils", the compliance analysis looked at revenues related to insurance business, considering premiums related to fire and other property damage policies he conformity assessment failed to verify compliance with the substantial contribution to the climate change adaptation objective, a condition that confirms, in line with the evidence from the previous year, that the urnover associated with this economic activity is only eligible for non environmentally sustainable eligibility n particular, during the year, these revenues generated by the insurance business saw a negative change; in fact, as a result of the major catastrophic events recorded during the year, revenues from underwriting climate-related perils through non-life and other property policies amounted to €0 in 2023

With reference to the valuations carried out under "6 18 Leasing of aircraft", the revenues169F ¹⁷⁰ strictly related to the transport of goods by aircraft were considered, which contribute through oste Air Cargo to the formation of the revenues belonging to the "Mail, arcels and Distribution" BU, whose eligible but non environmentally sustainable share in 2023 is around €5 million

nstead, with reference to the total urnover at the consolidated level, the total " et revenues from ordinary operations" for the year 2023 (€11,989 million) was determined, as reported in the "Consolidated tatement of rofit/(Loss) for the Year" in the Consolidated Financial tatements, in accordance with A 1 82(a)

¹⁷⁰ ee ote C1 'Revenue from mail, parcels and other' in the Consolidated Financial tatements

Table 1: Share of Turnover derived from products or services associated with economic activities aligned with the taxonomy - Disclosure for the year 2023170F 171

Financial year 2023		2023					Substantial contribution criteria						DNSH criteria ("Does Not Significantly Harm")
Economic Activities (1)	Code (2)	Turno ver (3 )	Propo rtion o f Turn over, year 2 023 (4 )	Clima te Cha nge M itigati on (5)	Clima te Cha nge A dapta tion ( 6)	Wate r (7)	Pollut ion (8 )	Circul ar Eco nomy (9)	Biodiv ersity (10)	Clima te Cha nge M itigati on (11 )	Clima te Cha nge A dapta tion ( 12)	Wate r (13)	Pollut ion (1 4)	Circul ar Eco nomy (15)	Biodiv ersity (16)	Minim um Sa fegua rds (1 7)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) turnover, year 2022 (18)	Category enabling activity (19)	Category transitional activity (20)
		€	%	Y;N; N/EL	Y;N; N/EL	Y;N; N/EL	Y;N; N/EL	Y;N; N/EL	Y;N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road	CCM 6.6	136	1.1%	Y	N						Y		Y	Y		Y	0.7%
Leasing of aircraft	CCM 6.18	0	0.0%	Y	N						\					Y
Non-life insurance: underwriting of climate-related perils CCA 10.1		0	0.0%	N	Y											Y	0.0%
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)		136	1.1%		1.1% 0.0% 0.0% 0.0% 0.0% 0.0%												0.7%
Of which enabling		-	0.0%		0.0% 0.0% 0.0% 0.0% 0.0% 0.0%												0.0%
Of which transitional		-	0.0%	0.0%													0.0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Freight transport services by road	CCM 6.6	1.179	9.8%	EL													8.8%
Leasing of aircraft	CCM 6.18	5	0.1%	EL													0.0%
Non-life insurance: underwriting of climate-related perils CCA 10.1		0	0.0%		EL												0.1%
Turnover of Taxonomy eligible but not environmentally sustainable activities (not Taxonomy aligned activities) (A.2)		1.184	9.9%		9.9% 0.0% 0.0% 0.0% 0.0% 0.0%												8.9%
A. Turnover of Taxonomy-eligible activities (A.1+A.2)		1,320			11.0% 11.0% 0.0% 0.0% 0.0% 0.0% 0.0%												9.6%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities		10.669	89.0%
Total		11.989	100.0%

	Propotion of turnover / Total turnover
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	1.1%	11.0%
CCA	0.0%	0.0%
WTR	0.0%	0.0%
CE	0.0%	0.0%
PPC	0.0%	0.0%
BIO	0.0%	0.0%

¹⁷¹ he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures

K s OF CA AL X D UR

he share of capital expenditure from taxonomy-aligned economic activities is 5 1%, as reported in the template ( able 2: Share of capital expenditure (CapEx) from products or services associated with economic activities aligned with the taxonomy - Disclosure for the year 2023). With regard, on the other hand, to the share of Cap x associated with eligible but non-aligned economic activities, 1 3% was achieved in this year, thus, the share of non-eligible capital expenditure is 93 6%

he indicators reported refer to the capital expenditure associated with the investments made in the Group's corporate fleet, directly related to the revenues of the "Mail, arcels and Distribution" trategic Business Unit, and to the investments made on the Group's properties in terms of energy efficiency, which refer respectively to the installation of energy efficiency devices, charging stations for electric vehicles, intelligent tools for measuring, regulating and controlling the energy performance of buildings and renewable energy technologies

herefore, the findings at the numerator of this K mainly refer to:

• investments associated with "6 6 Freight transport services by road" that contribute to the environmental objective of climate change mitigation;
• investments associated with sector "7 Construction and real estate" climate change mitigation objective, with a focus on enabling activities under "7 3 nstallation, maintenance and repair of energy efficiency equipment", "7 4 nstallation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)", "7 5 nstallation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings" and "7 6 nstallation, maintenance and repair of renewable energy technologies"

he alignment analyses underlined the conformity of the assessed economic activities to the eco-sustainability criteria of the axonomy Regulation and the associated technical screening criteria, as described below

With respect to the investments associated with "6 6 Freight transport services by road", activities were assessed as part of the investments related to the Group's fleet, whose conformity assessment recorded the substantial contribution to the climate change mitigation objective with reference to 1 category vehicles, which have zero direct (tailpipe) CO² emissions n particular, the expenses for the purchase of these vehicles, aimed at achieving the objective of replacing the company fleet with vehicles with a reduced environmental impact by 2024, were incurred mainly during 2022 herefore, during the year there was a significant decrease in the portion of Cap x eligible but not aligned (€14 million in 2023) referring to investments in road haulage services, against a slight reduction in the aligned portion (€25 million in 2023)

On the other hand, with reference to the Group's real estate investments, associated with "7 3 nstallation, maintenance and repair of energy efficiency equipment", during 2023, energy efficiency works were carried out on owned buildings that involved the replacement of L D lighting fixtures and heating systems n addition, these investments also include expenses incurred for the carbon neutrality efficiency of the adua sorting centre With reference to the investments associated with "7 4 nstallation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)", expenses incurred for the implementation of eco-sustainable mobility solutions and charging stations for electric vehicles were taken into account For investments associated, on the other hand, with '7 5 nstallation, maintenance and repair of instruments and devices for measuring, regulating and controlling the energy performance of buildings', activities related to environmental monitoring and the implementation of mart Building solutions were assessed Finally, with regard to investments associated with "7 6 nstallation, maintenance and repair of renewable energy technologies", the conformity assessment covered investments in photovoltaic systems otwithstanding the fact

that, with reference to the Group's real estate investments just described, the portion of Cap x eligible but not aligned remained unchanged compared to 2022, there was a slight increase in the aligned portion associated with the assets of:

• energy efficiency in owned buildings (€14 million in 2023), due to higher investments in heating systems and planned activities in the adua sorting centre;
• regulation and control of the energy performance of buildings (€3 million in 2023), due to the higher investments made during the year for environmental monitoring, which also include the buildings included in the olis roject;
• renewable energies (€12 million in 2023), due to increased investments in photovoltaic solar systems, which also include the buildings included in the olis roject

here was also a slight decrease in the Cap x aligned share associated with the installation, maintenance and repair of charging stations for electric vehicles in buildings (€3 million in 2023), due to the fact that the investment in charging stations in 2023 was less significant than in the previous reporting year

he changes described are therefore reflected in the total amounts of the numerator of the K s of the Cap x eligible (€70 million in 2023) and aligned (€56 million in 2023) to the axonomy, referred to the current financial year, whose eligibility and alignment percentages are shown in able 2

he assessments, in addition to verifying conformity with Art 3 of the axonomy Regulation and the substantial contribution to the climate change mitigation objective with reference to activities 6 6, 7 3, 7 4, 7 5 and 7 6, also verified that the Group's activities within the perimeter of the numerator of the K do not significantly harm the other environmental objectives

With reference, instead, to the denominator of the Capex K (€1,093 million in 2023), the latter was reconciled on the basis of the sum of the gross additions to property, plant and equipment and intangible assets recognised in this year in application of A 16, 38, 40 and FR 16, as reported in otes A1 " roperty, lant and quipment", A2 " nvestment roperty", A3 " ntangible Assets" and A4 "Rights-of-Use Assets" to the Consolidated Financial tatements, to which reference should be made

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Table 2: Share of capital expenditure (CapEx) from products or services associated with economic activities aligned with the taxonomy - Disclosure for the year 202317F 172

Financial year 2023		2023				Substantial contribution criteria				DNSH criteria ("Does Not Significantly Harm")
Economic Activities (1)	Code (2)	CapEx (3)	Propo rtion o f CapE x, yea r 2023 (4)	Clima te Cha nge M itigati on (5)	Clima te Cha nge A dapta tion ( 6)	Wate rs (7)	Pollut ion (8 )	Circul ar Eco nomy (9)	Biodiv ersity (10)	Clima te Cha nge M itigati on (11 )	Clima te Cha nge A dapta tion ( 12)	Wate r (13)	Pollut ion (1 4)	Circul ar eco nomy (15)	Biodiv ersity (16)	Minim um Sa fegua rds (1 7)	Proportion of Taxonomy aligned (A.1) or eligible (A.2) CapEx, year 2022 (18)	Category enabling activity (19)	Category transitional activity (20)
		€mln	%	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road	CCM 6.6	25	2.3%	Y	N						Y		Y	Y		Y	2.3%
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	14	1.3%	Y	N						Y		Y			Y	0.8%	E
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)	CCM 7.4	3	0.2%	Y	N						Y					Y	0.9%	E
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	3	0.3%	Y	N						Y					Y	0.2%	E
Installation, maintenance and repair of renewable energy technologies	CCM 7.6	12	1.1%	Y	N						Y					Y	0.9%	E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)		56	5.1%				0.0% 0.0% 0.0% 0.0% 0.0% 0.0%										5.1%
Of which enabling		31	2.8%				0.0% 0.0% 0.0% 0.0% 0.0% 0.0%										2.8%
Of which transitional		-	0.0%	0.0%													0.0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL	Y; N; N/EL
Freight transport services by road	CCM 6.6	14	1.3%	EL													17.8%
Installation, maintenance and repair of energy efficiency equipment	CCM 7.3	0	0.0%	EL													0.0%
Installation, maintenance and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings)	CCM 7.4	0	0.0%	EL													0.0%
Installation, maintenance and repair of instruments and devices for measuring, regulation and controlling energy performance of buildings	CCM 7.5	0	0.0%	EL													0.0%
Installation, maintenance and repair of renewable energy technologies	CCM 7.6	0	0.0%	EL													0.0%
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		14	1.3%				1.3% 0.0% 0.0% 0.0% 0.0% 0.0%										17.8%
A. CapEx of Taxonomy-eligible activities (A.1+A.2)		70	6.4%				6.4% 0.0% 0.0% 0.0% 0.0% 0.0%										22.9%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities		1.023	93.6%

	Propotion of CapEx / Total CapEx
	Taxonomy-aligned per	Taxonomy-eligible per
	objective	objective
CCM	5.1%	6.4%
CCA	0.0%	0.0%
WTR	0.0%	0.0%
CE	0.0%	0.0%
PPC	0.0%	0.0%
BIO	0.0%	0.0%

Total 1.093 100.0%

¹⁷² he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures

K s OF O RA O AL X D UR

n accordance with U Delegated Regulation o 2178/2021, the Group has identified, with reference to this financial year, the share of operating expenses associated with aligned, eligible but non-aligned and non-taxonomy eligible economic activities, shown in able 3: Share of operating expenses arising from products or services associated with economic activities aligned with the taxonomy - Year 2023 disclosure.

he share of Op x derived from economic activities aligned to the axonomy is 0 1%; the share of Op x associated with eligible but non-eco-sustainable economic activities is 4 1%, while the non-eligible share is equivalent to 95 8%

hese K s refer to direct costs associated with delivery and transport activities using vehicles belonging to the Group's corporate fleet and air freight, which fall under the trategic Business Unit 'Mail, arcels and Distribution' n particular, in line with what has been described in relation to the calculation of the K urnover, by virtue of regulatory developments and the inclusion among the economic activities envisaged by the axonomy of those relating to the air transport of passengers and goods, downstream of the analysis of these economic activities, the eligible operating expenses related to oste Air Cargo's air transport service were also considered

herefore, with reference to the present financial year, the eligibility and alignment analyses were conducted in relation to the economic activity "6 6 Freight transport services by road", as well as the due eligibility analyses in relation to the activity "6 18 Leasing of aircraft", which correspond to the climate change mitigation objective

With regard to the alignment analyses, these revealed the compliance of the economic activities related to "6 6 Freight transport services by road" n this respect, as explained in the section on the urnover K , a weighting driver was adopted to identify the share of aligned operating expenses herefore, operational expenditure related to vehicles of category 1 with zero direct (tailpipe) CO² emissions, which, at the same time, consistent with the D H criteria, do not significantly harm the other environmental objectives of adaptation, transition to a circular economy, and pollution prevention and reduction, count towards the Op x aligned quota

Compared to the previous year, there is a positive change in the total operating expenses eligible for the axonomy; this increase is due to the effect of both the increase in maintenance expenses associated with vehicles falling within the scope of eligibility ("6 6 Freight transport services by road"), whose operating expenses amount to approximately €11 million in 2023, and the inclusion of expenses associated with "6 18 Leasing of aircraft", which amount to approximately €6 million in 2023 On the other hand, with regard to the share of aligned operating expenses, this value increased slightly to €0 4 million in 2023, although it did not have a significant impact in percentage terms

Regarding the denominator of the K (€411 million) of operating expenses, pursuant to Annex of Delegated Regulation no 2178/2021, this was defined on the basis of non-capitalised direct costs relating to research and development, building renovation, rent, maintenance, repairs and other direct expenses related to the day-to-day operation of the assets incurred in this financial year

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Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Table 3: Share of operating expenses (OpEx) arising from products or services associated with economic activities aligned with the taxonomy - Disclosure for the year 2023172F 173

Financial year 2023		2023				Substantial contribution criteria					D H criteria ("Does ot ignificantly Harm")
Economic Activities (1)	Code (2)	OpEx (3)	Propo rtion o f OpE x, yea r 2023 (4)	Clima te Ch ange Mitiga tion (5 ) Y;N;	Clima te Ch ange Adapt ation (6) Y;N;	Wate r (7) Y;N;	Pollut ion (8 ) Y;N;	Circu lar Ec onom y (9) Y;N;	Biodiv ersity (10) Y;N;	Clima te Ch ange Mitiga tion (1 1)	Clima te Ch ange Adapt ation (12)	Wate r (13)	Pollut ion (1 4)	Circu lar Ec onom y (15)	Biodiv ersity (16)	Minim um Sa fegua rds (1 7)	Proportion of Taxonomy aligned (A.1.) or eligible (A.2.) OpEx, year 2022 (18)	Category enabling activity (19)	Category transitional activity (20)
		€	%	N/EL	N/EL	N/EL	N/EL	N/EL	N/EL	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N	%	E	T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Freight transport services by road	CCM 6.6	0.4	0.1%	Y	N						Y		Y	Y		Y	0.1%
Leasing of aircraft	CCM 6.18	0	0.0%	Y	N						\					Y
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)		0.4		0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%													0.1%
Of which enabling		-		0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Of which transitional		-		0.0% 0.0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
				EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL	EL; N/EL
Freight transport services by road	CCM 6.6	11	2.6%	EL													2.3%
Leasing of aircraft	CCM 6.18	6	1.4%	EL
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2)		17		4.1% 4.1% 0.0% 0.0% 0.0% 0.0% 0.0%													2.3%
A. OpEx of Taxonomy-eligible activities (A.1+A.2)		17		4.2% 4.2% 0.0% 0.0% 0.0% 0.0% 0.0%													2.4%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

OpEx of Taxonomy-non-eligible activities 394 95.8% Total 411 100.0%

	Propotion of OpEx / Total OpEx
	Taxonomy-aligned per objective	Taxonomy-eligible per objective
CCM	0.1%	4.2%
CCA	0.0%	0.0%
WTR	0.0%	0.0%
CE	0.0%	0.0%
PPC	0.0%	0.0%
BIO	0.0%	0.0%

¹⁷³ he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures

CO- U A ABL V M BY H O AL A GROU

o ensure full transparency towards the market, the Group has also disclosed the K s envisaged by the axonomy Regulation for Financial Undertakings For this purpose, therefore, the performance indicators relating to the financial Asset Management and nsurance operations carried out by Banco osta Fondi GR and oste Vita, respectively, are set out below

As of this financial year, financial firms, in addition to disclosing their share of eligible (relative to the six regulated objectives) and non-taxonomy-eligible exposures, must also report aligned exposures that contribute substantially to the first two objectives: climate change mitigation and adaptation

n this regard, for the current year, it was possible to provide disclosure of K s on the share of aligned, eligible and noneligible exposures performed on the basis of actual/reported percentages in terms of urnover and Cap x, thus providing point data instead of estimates or proxies

ndeed, to ensure greater data reliability and a robust methodology, the Group engaged an external provider he provider's use of the consolidated database allowed the data owner functions of Banco osta Fondi GR and oste Vita to analyse their assets that contribute to determining the share of eligibility for the six objectives and alignment to the first two, as well as to use timely data to calculate the urnover and Cap x-based K s173F ¹⁷⁴ n this regard, it should be noted that the methodology used provided for a look-through approach with respect to the funds in the portfolios under management, which therefore ensured a greater level of detail in the analyses performed by Banco osta Fondi GR and oste Vita regarding eligibility and alignment

n line with the relevant regulations, the numerator of the K s was defined according to the exposures held in the portfolio in terms of economic assets to:

• financial entities subject to non-financial reporting requirements, whether operating in U or non- U countries;
• financial entities not subject to non-financial reporting requirements, whether operating in U or non- U countries;
• non-financial entities subject to non-financial reporting requirements, whether operating in U or non- U countries;
• non-financial entities not subject to non-financial reporting requirements, whether operating in U or non- U countries;
• derivatives174F ¹⁷⁵ and other exposures

n this regard, it should be noted that, due to the limited availability of useful information and precise data referring to the specific exposures held towards companies operating in the gas and nuclear sectors, it was not possible to consider, within the scope of the calculations performed, the economic activities governed by U Delegated Regulation no 2022/1214 and the relative disclosure models provided for by the regulations

With reference to the denominator, the latter was determined on the basis of the assets under management for Banco osta Fondi GR and oste Vita, whose monetary values were reduced by the portion in exposures to central governments, central banks and supranational issuers

¹⁷⁴ n accordance with regulatory guidelines, Banco osta Fondi GR has only taken into consideration the assets referring to the portfolios set up by the same; therefore, with reference to the oste Vita portfolios delegated to the AMC, it should be noted that the latter have not been included in the calculation of the K s governed for financial managers, but rather those referring to osteVita ( nvestment K ), in order to avoid double counting

¹⁷⁵ n continuity with what was reported in the previous year, the absolute values of derivatives at mark-to-market as at 31 12 23 were considered for Banco osta Fondi GR

herefore, with respect to this denominator, the data coverage guaranteed by the provider in processing the data, and finalised to the analyses carried out by Banco osta Fondi GR and oste Vita for the definition of the indicators, recorded a coverage percentage of 82 2% and 82 8% respectively

Accordingly, pursuant to the regulatory requirements of Article 10 5 of U Delegated Regulation 2021/2178, the performance indicators of Banco osta Fondi GR and oste Vita and their respective templates are presented below

A MA AG M K s

As shown in able 4, the share of investments aligned to the urnover-based and Cap x-based taxonomy accounts for 2 16% and 5 23% respectively With regard, on the other hand, to the share of eligible and non-eligible exposures, during the year, these accounted for 3 94% in terms of urnover and 4 09% in terms of Cap x; thus, the share of non-eligible exposures was 93 9% ( urnover-based) and 90 68% (Cap x-based)

Furthermore, in line with the disclosure provided within the template, it appears that exposures to companies not subject to non-financial reporting requirements amount to 42 07%, while the share in exposures to central governments, central banks and supranational issuers accounts for 43 40%

t should be noted that these calculated alignment percentages are closely related to the exposures contributing to climate change mitigation and adaptation targets, which are respectively 2 15% and 0 002% ( urnover-based) and 4 69% and 0 54% (Cap x-based)

Poste Italiane Group Report on Operations at 31 December 2023

Table 4: Standard reporting template pursuant to Article 8 of Regulation (EU) 2020/852 (financial asset managers)175F 176

in the coverage of the data provided by the info-provider The percentage of assets covered by the KPI relative to total investments (total AuM). Excluding investments in sovereign entities. Coverage ratio: 56.60% The percentage of derivatives relative to total assets covered by the KPI: 14.95% The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 1.55% The value of all the investments that are funding economic activities that are not taxonomy-eligible relative to the value of total assets covered by the KPI: Turnover-based: 93.90% CapEx-based: 90.68% The value of all the investments that are funding taxonomy-eligible economic activities, but not taxonomyaligned relative to the value of total assets covered by the KPI: Turnover-based: 3.94% CapEx-based: 4.09% (3) The sustainable use and protection of water and marine resources Turnover: NA CapEx: NA Enabling activities: NA (Turnover; CapEx) (4) The transition to a circular economy Turnover: NA CapEx: NA Enabling activities: NA (Turnover; CapEx) (5) Pollution prevention and control Turnover: NA CapEx: NA Enabling activities: NA (Turnover; CapEx) (6) The protection and restoration of biodiversity and ecosystems Turnover: NA CapEx: NA Enabling activities: NA (Turnover; CapEx) Breakdown of the numerator of the KPI per environmental objective Taxonomy-aligned activities: 1) Climate change mitigation Turnover: 2.15% CapEx: 4.69% Enabling activities: NA (Turnover; CapEx) 2) Climate change adaptation Turnover: 0.002% CapEx: 0.54% Enabling activities: NA (Turnover; CapEx) Additional, complementary disclosures: breakdown of numerator of the KPI The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: Turnover-based: 2.16% CapEx-based: 5.22% For financial undertakings: Turnover-based: 0.001% CapEx-based: 0.005% Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: For non-financial undertakings: Turnover-based: 190.7 CapEx-based: 461.9 For financial undertakings: Turnover-based: 0.1 CapEx-based: 0.4 The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: 0.00% CapEx-based: 0.00% Value of Taxonomy-aligned exposures to other counterparties and assets: Turnover-based: 0.0 CapEx-based: 0.0 The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 20.21% For financial undertakings: 19.08% Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: For non-financial undertakings: 1,786.9 For financial undertakings: 1,687.7 Value of exposures to other counterparties and assets: 137.5 Value of all the investments that are funding economic activities that are not taxonomy-eligible: Turnover-based: 8,303.7 CapEx-based: 8,018.8 Value of all the investments that are funding Taxonomy eligible economic activities, but not taxonomy aligned: Turnover-based: 348.8 CapEx-based: 362.0 Additional, complementary disclosures: breakdown of denominator of the KPI The value in monetary amounts of derivatives: 1,322.5 The proportion of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 1.23% For financial undertakings: 0.31% Value of exposures to EU financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU: For non-financial undertakings: 108.9 For financial undertakings: 27.4 The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 33.18% For financial undertakings: 7.35% Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU: For non-financial undertakings: 2,934.5 For financial undertakings: 649.6 The monetary value of assets covered by the KPI. Excluding investments in sovereign entities. Coverage: 8,843.2 TEMPLATES FOR KEY PERFORMANCE INDICATORS (KPIs) OF FINANCIAL ASSET MANAGERS Template - Standard template for the disclosure required under Article 8 of Regulation (EU) 2020/852 (asset managers) €mln The weighted average value of all the investments that are directed at funding, or are associated with taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: Turnover-based: 2.16% CapEx-based: 5.23% The weighted average value of all the investments that are directed at funding, or are associated with taxonomy-aligned economic activities, with following weights for investments in undertakings per below: Turnover-based: 190.7 CapEx-based: 462.3

¹⁷⁶ he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures Furthermore, it should be noted that the summation of the denominator components shows a value of less than 100% due to limitations

URA C K s

With regard to the insurance business carried out by oste Vita, in continuity with previous years, disclosure is provided on the nvestment K and the Underwriting K

n line with what was previously reported for the K referring to the Asset Management operations of Banco osta Fondi GR, also with regard to the share of investments - nvestment K - of the oste Vita Group in aligned economic activities, eligible and non-eligible, used as the basis of the data instrumental to the calculation of the performance indicators was the information obtained from the external provider n this regard, it was possible to determine the share of aligned and eligible exposures based on urnover and Cap x; these, for the current financial year, represent 2 22% and 4 83% of alignment and 6 24% and 5 15% of eligibility respectively

With regard to the share of exposures to non-financial reporting companies, as shown in able 5, the K is 43 85%, while the share in exposures to central administrations, central banks and supranational issuers is 67 7%

Finally, in accordance with recent regulatory developments, the analyses conducted by oste Vita distinguished the percentages of alignment to the axonomy referring to climate change mitigation and adaptation objectives, respectively 2 22% and 0 01% ( urnover-based) and 4 83% and 0 01% (Cap x-based)

Poste Italiane Group Report on Operations at 31 December 2023

Table 5: Share of the insurance or reinsurance undertaking's investments directed to finance or associated with activities aligned with the taxonomy in relation to total investments176F 177

TEMPLATES FOR KEY PERFORMANCE INDICATORS (KPIs) OF INSURANCE AND REINSURANCE COMPANIES
Template - The proportion of the insurance or reinsurance undertaking's investments that are directed at funding, or are associated with, Taxonomy-aligned in relation to total investments
	€mln
The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities relative to the value of total assets covered by the KPI, with following weights for investments in undertakings per below: Turnover-based: 2.22% Capital expenditures-based: 4.83%	Turnover-based: 1,071.0	The weighted average value of all the investments of insurance or reinsurance undertakings that are directed at funding, or are associated with Taxonomy-aligned economic activities, with following weights for investments in undertakings per below: Capital expenditures-based: 2,328.4
The percentage of assets covered by the KPI relative to total investments of insurance or reinsurance undertakings (total AuM). Excluding investments in sovereign entities. Coverage ratio: 32.3%	Coverage: 48,189.9	The monetary value of assets covered by the KPI. Excluding investments in sovereign entities.
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI: 0.00%	The value in monetary amounts of derivatives: 0.0
The proportion of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 29.70% For financial undertakings: 14.15%	For non-financial undertakings: 14,310.7 For financial undertakings: 6,819.3	Value of exposures to financial and non-financial undertakings not subject to Articles 19a and 29a of Directive 2013/34/EU:
The proportion of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 27.81% For financial undertakings: 12.97%	2013/34/EU:	Value of exposures to financial and non-financial undertakings from non-EU countries not subject to Articles 19a and 29a of Directive For non-financial undertakings: 13,403.7 For financial undertakings: 6,249.2
The proportion of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: 20.99% For financial undertakings: 17.32%	For non-financial undertakings: 10,112.7 For financial undertakings: 8,345.6	Value of exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
The proportion of exposures to other counterparties and assets over total assets covered by the KPI: 7.25%	Value of exposures to other counterparties and assets: 3,492.0
The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities: 82.07%	39,548.4	Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned economic activities:
The value of all the investments that are funding economic activities that are not Taxonomy-eligible relative to the value of total assets covered by the KPI: Turnover-based: 91.54%	Turnover-based: 44,111.2	Value of all the investments that are funding economic activities that are not Taxonomy-eligible: Capital expenditures-based: 43,377.3
Capital expenditures-based: 90.01% The value of all the investments that are funding Taxonomy-eligible economic activities, but not Taxonomy		Value of Taxonomy-aligned exposures to other counterparties and assets, but not Taxonomy-aligned:
aligned relative to the value of total assets covered by the KPI: Turnover-based: 6.24%	Turnover-based: 3,007.7 Capital expenditures-based: 2,484.1
Capital expenditures-based: 5.15% Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI: For non-financial undertakings: Turnover-based: 2.22% Capital expenditures-based: 4.82% For financial undertakings: Turnover-based: 0.01% Capital expenditures-based: 0.02%	Value of Taxonomy-aligned exposures to financial and non-financial undertakings subject to Articles 19a and 29a of Directive 2013/34/EU: For non-financial undertakings: Turnover-based: 1,070.5 Capital expenditures-based: 2,320.7 For financial undertakings: Turnover-based: 0.4 Capital expenditures-based: 7.8
The proportion of the insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: 2.01% Capital expenditures-based: 4.40%	Value of insurance or reinsurance undertaking's investments other than investments held in respect of life insurance contracts where the investment risk is borne by the policy holders, that are directed at funding, or are associated with, Taxonomy-aligned: Turnover-based: 966.4 Capital expenditures-based: 2,121.7
The proportion of Taxonomy-aligned exposures to other counterparties and assets over total assets covered by the KPI: Turnover-based: 0.00% Capital expenditures-based: 0.00%	Turnover-based: 0.0 Capital expenditures-based: 0.0	Value of Taxonomy-aligned exposures to other counterparties and assets, but not Taxonomy aligned:
Breakdown of the numerator of the KPI per environmental objective Taxonomy-aligned activities:
1) Climate change mitigation	Turnover: 2.22% CapEx: 4.83%	Enabling activities: NA (Turnover; CapEx)
2) Climate change adaptation	Turnover: 0.01% CapEx: 0.01%	Enabling activities: NA (Turnover; CapEx)
(3) The sustainable use and protection of water and marine resources	Turnover: NA Capital expenditure: NA	Enabling activities: NA (Turnover; CapEx)
(4) The transition to a circular economy	Turnover: NA Capital expenditure: NA	Enabling activities: NA (Turnover; CapEx)
(5) Pollution prevention and control	Turnover: NA Capital expenditure: NA	Enabling activities: NA (Turnover; CapEx)
(6) The protection and restoration of biodiversity and ecosystems	Turnover: NA Capital expenditure: NA	Enabling activities: NA (Turnover; CapEx)
in the coverage of the data provided by the info-provider		177 he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures Furthermore, it should be noted that the summation of the denominator components shows a value of less than 100% due to limitations

¹⁷⁷ he figures shown have been rounded for ease of reference For this reason, the sums may differ slightly from the reported figures Furthermore, it should be noted that the summation of the denominator components shows a value of less than 100% due to limitations

n the context of oste Vita's insurance business, the Underwriting indicator, which reflects the underwriting of climaterelated perils through non-life and other property policies, was assessed he contextual analyses allowed to identify the economic activity "10 1 on-life insurance: underwriting of climate-related perils", which is compliant with Annex of the Climate Act, and to assess its respective share of eligible and taxonomy-aligned revenues

hus, the share of non-life revenues associated with underwriting climate-related hazards through non-life and other property policies was taken into account in the numerator, and total non-life insurance revenues in the denominator Following the eligibility and alignment analyses, as also reported in the section on urnover K s, both the eligibility and alignment rate for this year was 0% n particular, with reference to taxonomy-eligible revenues, no eligible revenues were generated in 2023 as a result of major catastrophic events during the financial year On the contrary, for the aligned share, the contextual analyses conducted did not allow verification of compliance with the substantial contribution to the respective climate change adaptation target

he above findings are presented below in tabular format, in line with the provisions of Annex X of U Delegated Regulation o 2021/2178

	Substantial contribution to climate change adaptation
Economic activities (1)	Absolute premiums, year 2023 (2)	Proportion of premiums, year 2023 (3)	Proportion of premiums, year 2022 (4)	Climate Change Mitigation (5)	Water and marine resoureces (6)	Circular economy (7)	Pollution (8)	Biodiversity and ecosystems (9)	Minimum safeguards (10)
	€mln	%	%	Y/N	Y/N	Y/N	Y/N	Y/N	Y/N
A.1. Non-life insurance and reinsurance underwriting Taxonomy-aligned activities (environmentally sustainable)	0	0.0%		N					Y
A.1.1 Of which reinsured	0	0.0%		N					Y
A.1.2 Of which stemming from reinsurance activity	0	0.0%		N					Y
A.1.2.1 Of which reinsured (retrocession)	0	0.0%		N					Y
A.2. Non-life insurance and reinsurance underwriting Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)	0	0.0%
Non-life insurance and reinsurance underwriting Taxonomy-non-eligible activities	90	100.0%
Total (A.1 + A.2 +B)	90	100.0%

Table 6: Underwriting KPI for non-life insurance and reinsurance companies

Table linking the areas of Legislative Decree 245/2016 and its positioning in the NFS

SCOPES OF
LEGISLATIVE	CHAPTERS/PARAGRAPHS INCLUDED IN	TOPICS AND ADDITIONAL INFORMATION INCLUDED IN
DECREE NO.	THE NFS	OTHER 2023 DOCUMENTS
254/2016

			•	3 Corporate
				governance model
				Organisation of the
				Company
Company management and organisational model [Art. 3, paragraph 1, letter a]	• ustainability themes relevant to oste		•	6 Board of Directors;
	taliane
	• ncorporating sustainability within the	Report on		and term of office
	oste taliane's strategy	Corporate	•	7 Committees
	• Business Model	Governance	•	8 Board of tatutory
	• oste taliane's integrated internal			Auditors
	control and risk management system
			•	9 nternal control and
				risk management
				system; 9 2
				Organisational,
				management and the

olicies [Art. 3, paragraph 1, letter b]	• he Group's sustainability policies • 2023 outcomes of the value creation process at oste taliane • Value Creation
Main risks and related	• ustainability themes relevant to oste
management	taliane	Report on Corporate	• 9 nternal control and risk management
systems	• oste taliane's integrated internal	Governance	system
[Art. 3, paragraph	control and risk management system
1, letter c]
fforts to combat	• Work with transparency and integrity
active and passive		Report on Corporate	• 9 nternal control and
corruption	• Legality and incorporation of G		risk management system
[Art. 3, paragraph	criteria within the procurement	Governance
1]	processes

control model pursuant to Legislative Decree

231/2001

	• ntegration of G factors into investment policies
	• ntegration of G factors into insurance policies
	• rotection of human rights at the Company
ersonnel	• qual career development opportunities
[Art. 3, paragraph 1]	• ersonnel training and development
	• taff welfare and well-being
	• Relations with social partners
	• Occupational health and safety
	• Legality and incorporation of G criteria within the procurement process
Respect for	• rotection of human rights at the Company
human rights [Art. 3, paragraph	• qual career development opportunities
1]	• ntegration of G factors into investment policies
	• ntegration of G factors into insurance policies
	• Legality and incorporation of G criteria within the procurement process
nvironment	• nvironmental impacts of real estate facilities
[Art. 3, paragraph	• nvironmental impacts of logistics
1]	• ntegration of G factors into investment policies
	• ntegration of G factors into insurance policies
	• he economic value generated and distributed by the oste taliane Group
ocial	• Legality and incorporation of G criteria within the procurement process
[Art. 3, paragraph	• upport for the socio-economic
1]	development of local communities
	• Dialogue and transparency in relations with the authorities
	• Financial inclusion

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

2023 Annual Report

• Quality and customer experience
• nnovation and digitisation of products, services and processes
• Cyber ecurity, ecurity and rivacy
• ntegration of G factors into investment policies
• ntegration of G factors into insurance policies

he following table outlines the relations among the scope of the Decree, oste taliane's material topics and the corresponding GR tandards and describes, for each material topic, the related impact generated both inside and outside of the organisation

Table showing the link with the scope of the Decree, Poste Italiane's material topics and the GRI Standards.

SCOPES OF

LEGISLATIVE	Material	GRI	Internal	External	Type of
DECREE	topics	Standards	scope	scope	impact
254/2016
Efforts to combat active and passive corruption	Work with transparency and integrity	⦁ GRI 205 Anti corruption ⦁ GRI 207 Taxes ⦁ GRI 415 Public Policy	Poste Italiane Group	⦁ Suppliers and business partners ⦁ Entities and institutions ⦁ Customers ⦁ Shareholders and investors	Generated by the Group
Personnel	Equal career development opportunities	⦁ GRI 404 Training and Education ⦁ GRI 405 Diversity and Equal Opportunity	Poste Italiane Group	⦁ Entities and institutions ⦁ Shareholders and investors	Generated by the Group
	Personnel training and development	⦁ GRI 404 Training and Education	Poste Italiane Group	⦁ Customers ⦁ Entities and institutions ⦁ Shareholders and investors	Generated by the Group
	Staff welfare and well-being	⦁ GRI 401 Employment	Poste Italiane Group	⦁ Entities and institutions ⦁ Shareholders and investors	Generated by the Group
	Relations with social partners	⦁ GRI 402 Relations between employees and management	Poste Italiane Group	⦁ Entities and institutions	Generated by the Group
	Occupational health and safety	⦁ GRI 403 Occupational Health and Safety	Poste Italiane Group	⦁ Suppliers and business partners ⦁ Entities and institutions ⦁ Shareholders and investors	Generated by the Group

Poste Italiane Group		Report on Operations at 31 December 2023

SCOPES OF
LEGISLATIVE	Material	GRI	Internal	External	Type of
DECREE	topics	Standards	scope	scope	impact
254/2016
Respect for human rights	Protection of human rights at the Company	⦁ GRI 405 Diversity and Equal Opportunity	Poste Italiane Group	⦁ Suppliers and business partners ⦁ Communities and Territory ⦁ Entities and institutions ⦁ Shareholders and investors ⦁ Customers	Generated by the Group
Environment	Legality and incorporation of ESG criteria within the procurement process	⦁ GRI 301 Materials	Poste Italiane Group	⦁ Suppliers and business partners	Generated by the Group and directly connected through a business
	Environmental impacts of real estate facilities	⦁ GRI 302 Energy ⦁ GRI 303 Water and Effluents ⦁ GRI 305 Emissions ⦁ GRI 306 Waste	Poste Italiane Group	⦁ Environment ⦁ Entities and institutions ⦁ Communities and Territory	Generated by the Group and related to the Group through its commercial relationships
	Environmental impacts of logistics	⦁ GRI 302 Energy ⦁ GRI 305 Emissions	Poste Italiane Group	⦁ Environment ⦁ Suppliers and business partners ⦁ Entities and institutions ⦁ Communities and Territory	Generated by the Group
Social	Support for the socio-economic development of local communities	⦁ GRI 203 Indirect economic impacts	Poste Italiane Group	⦁ Entities and institutions ⦁ Communities and Territory	Generated by the Group
	Dialogue and transparency in relations with the authorities	⦁ -	Poste Italiane Group	⦁ Entities and institutions ⦁ Communities and Territory	Generated by the Group
	Financial inclusion	⦁ FS 14 Initiatives to improve access to financial services for disadvantaged people	Poste Italiane Group	⦁ Entities and institutions ⦁ Communities and Territory	Generated by the Group and to which the Group contributes

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

SCOPES OF
LEGISLATIVE	Material	GRI	Internal	External	Type of
DECREE	topics	Standards	scope	scope	impact
254/2016
	Quality and customer experience	⦁ -	Poste Italiane Group	⦁ Customers	Generated by the Group
	Innovation and digitisation of products, services and processes	⦁ -	Poste Italiane Group	⦁ Customers ⦁ Communities and Territory ⦁ Suppliers and business partners ⦁ Shareholders and investors	Generated by the Group and to which the Group contributes
	Cyber Security, IT Security and Privacy	⦁ GRI 418 Customer Privacy	Poste Italiane Group	⦁ Customers ⦁ Suppliers and business partners ⦁ Entities and institutions ⦁ Shareholders and investors	Generated by the Group
	Integration of ESG factors into investment policies	⦁ FS 11 Percentage of goods subject to environmental or social screening positive and negative	Poste Italiane Group	⦁ Shareholders and investors ⦁ Communities and Territory ⦁ Environment	Generated by the Group
	Integration of ESG factors into insurance policies	⦁ FS 11 Percentage of goods subject to environmental or social screening positive and negative	Poste Italiane Group	⦁ Shareholders and investors ⦁ Communities and Territory ⦁ Environment	Generated by the Group

9.3 TABLE OF CONTENTS GRI-STANDARDS

(GRI CONTENT INDEX)

Declaration of Use	oste taliane has prepared this on-Financial tatement in accordance with GR tandards for the period from January st, 2023 to December 31, 2023 1
GRI 1 used	GR 1 - Fundamental rinciples - version 2021
Applicable Sector GRI	/A
Standards

GRI Standard	Disclosure	Location	Omission
General Disclosures
The organisation and its reporting practices
GRI 2 - General Disclosures - Version 2021	2-1 Organisational details	Report on Operations: tatement from the Chairwoman and the Chief xecutive Officer (p 2-7) Annual Report: ntroduction (p 560-561) Report on Operations: Omnichannel strategy (p 50-63) Report on Operations: Business Model (p 24- 99)
	2-2 ntities included in the organisation's sustainability reporting	Report on Operations: Chapter 9 Consolidated non-financial statement (p 494- 545)
	2-3 Reporting period, frequency and point of contact	Report on Operations: Chapter 9 Consolidated non-financial statement (p 494- 545) For further information and details regarding the topics and indicators covered in this Report, contact: oste taliane pA Corporate Affairs/ ustainable Development, Risk and Group Compliance function Viale uropa, 190 00144 Rome – taly
	2-4 Review of information	Report on Operations: Chapter 9 Consolidated on-Financial tatement (p 494-545); ndicators tables (p 425-481) o restatements have been made with respect to the previous year's figures, except where expressly stated
	2-5 xternal assurance	Report on Operations: Chapter 9 Consolidated non-financial statement (p 494- 545)
Activities and workers

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

		Report on Operations: Omnichannel and
		business sectors (p 50-99); Omnichannel
		strategy (p 50-63)
		Report on Operations: erformance of oste
		taliane pA and Bancoposta RFC Report on
		Operations (p 231-245); ndicators tables
		(p 425-481) -- Report on Corporate
		Governance and Ownership tructure:
		ection : Governance and ownership
		structures (p 1-10)
	2-6 Activities, value chain and
	other business relations	Report on Operations: Legality and
		incorporation of G criteria within the
		procurement process (p 257-265)
		Report on Operations: Main corporate
GRI 2 - General Disclosures -		transactions undertaken (p 45-49);
Version 2021		hareholding and organisational structure of
		oste taliane (p 24-28) - Report on
		Corporate Governance and Ownership
		tructure: ection : Governance and
		ownership structures (p 1-10)
		Report on Operations: erformance of oste
		taliane pA and Bancoposta RFC Report on
		Operations (p 231-245); ndicators tables
		(p 425-481); Report on Corporate
	2-7 mployees	Governance and Ownership tructure:
		ection : Governance and ownership
		structures (p 1-10)
		Chapter 7 Value Creation - ndicators tables
		(p 432-433)
		Chapter 7 Value Creation - ndicators tables
	2-8 on-employees	(p 433)
Governance
		Report on Corporate Governance and the
		Ownership tructure: 7 2 Audit and risk
		committee (p 28-35); 7 3 ustainability
		Committee (p 35-39)
	2-9 Governance structure and	Report on Operations: he Corporate
	composition	Governance of oste taliane (p 28-31);
		Report on Operations: Managing climate
		change risks and opportunities (p 142-150);
		Chapter 7 ndicators tables (p 425-481);
GRI 2 - General Disclosures -		Links:
		https://www posteitaliane it/it/consiglio-di
Version 2021		amministrazione html
		Report on Corporate Governance and the
		Ownership tructure: 6 Board of Directors;
		6 1 current composition and term of office
	2-10 Appointment and selection	(pursuant to art 123-bis, para 2 d),
	of the highest governing body	Consolidated Law on Finance) (p 11-12); 6 8
		ndependent Directors (p 21-22); 6 10
		Assessment of workings of the Board of
		Directors and Board Committees (p 23-24);

Poste Italiane Group Report on Operations at 31 December 2023

	bis, paragraph 2 d-bis), Consolidated Law on
	Finance) (p 24-26)
2-11 Chair of the highest	Report on Corporate Governance and the
governance body	Ownership tructure: 6 6 Chief xecutive
	Officer (p 19-20)
	Report on Operations: he Multistakeholder
	Forum 2023 (p 106-107); oste taliane's
	Corporate Governance (p 28-31); oste
	taliane's ntegrated nternal Control and Risk
	Management ystem (p 124-129); Risk
	Management Model and Risk Analysis
	(p 126-129); he management of risks and
	opportunities related to climate change
2-12 Role of the highest	(p 142-150);
governing body in impact
management control	Report on Corporate Governance and the
	Ownership tructure: 6 3 Role and functions
	(ex art 123-bis, paragraph 2, letter d), UF)
	(p 14-17); 6 6 Chief xecutive Officer (p 19-
	20); 7 2 Control and risk committee (p 28-
	35); 7 3 ustainability Committee (p 35-39);
	14 Other corporate governance procedures
	(pursuant to art 123-bis, paragraph 2 a),
	UF (p 62-67)
	Report on Operations: oste taliane's
	Corporate Governance (p 28-31); Risk
	Management Model and Risk Analysis (p 25-
	128); he Multi-stakeholder Forum 2023
2-13 Delegation of responsibility	(p 106-107)
for impact management
	Report on Corporate Governance and the
	Ownership tructure: 7 3 ustainability
	Committee (p 35-39)
	Report on Corporate Governance and the
	Ownership tructure: 6 3 Role and functions
2-14 Role of the highest	(pursuant to Art 123-bis(2)(d) of the
governance body in sustainability	Consolidated Law on Finance) (p14-17); 6 4
reporting	Board meetings and operating procedures
	(p 7-18); 7 3 ustainability Committee (p 35-
	39)
	Report on Corporate Governance and the
2-15 Conflicts of interest	Ownership tructure: 14 Other corporate
	governance procedures (pursuant to art
	123-bis, paragraph 2 a), UF (p 62-67)
	Report on Operations: oste taliane's
	ntegrated nternal Control and Risk
	Management ystem (p 124-129) - Report
	on Corporate Governance and Ownership
2-16 Communication of critical	tructure: 5 5 quity participation by
issues	employees: rights mechanisms (pursuant to
	art 123-bis, paragraph 1 e), Consolidated
	Law on Finance) (p 6-7); 7 2 Audit and Risk
	Committee (p 28-35); 7 3 ustainability
	Committee (p 35-39)
	Report on Operations: oste taliane's
2-17 Collective knowledge of the	ntegrated nternal Control and Risk
highest governance body	Management ystem (p 124-129) - Report
	on Corporate Governance and Ownership

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

		tructure: 6 3 Role and functions (pursuant
		to art 123-bis, paragraph 2 d), UF) (p 14-
		17); 6 8 ndependent Directors (p 21-22);
		6 10 Assessment of workings of the Board of
		Directors and Board Committees (p 23-24)
		Report on Corporate Governance and the
	2-18 erformance evaluation of	Ownership tructure: 6 10 Assessment of
	the highest governing body	workings of the Board of Directors and Board
		Committees (p 23-24)
		Report on the remuneration policy: 1st
	2-19 Remuneration Rules	ection
		Report on Corporate Governance and the
	2-20 rocedure for determining	Ownership tructure: 6 12 Remuneration
	remuneration	(p 26)
	2-21 Annual total remuneration	Report on Operations: ndicators tables
	ratio	(p 454)
Strategy, policies and practice
	2-22 tatement on the	Report on Operations: tatement from the
	sustainable development strategy	Chairwoman and the Chief xecutive Officer
		(p 2-7)
		he cautionary approach required by
		principle 15 of the United ations Rio
		Declaration is applied by oste taliane to
		protect the environment in the development
		and introduction of new products and
		services and in planning new operating
		activities
	2-23 Commitment in terms of	Report on Operations: he Group's
	policy	nvironmental, ocial and Governance
		( G) trategic lan (p 113-117); Risk
		Management Model and risk analysis (p 126-
		129); Managing climate change risks and
		opportunities (p 142-150); oste taliane's
		commitment to managing human rights risks
		(p 137-141); Working with transparency and
		integrity (p 247-253)
GRI 2 - General Disclosures -
Version 2021		Occupational Health and afety olicy;
		olicy Diversity and nclusion; Group olicy
		for the protection of Human Rights; Diversity
	2-24 ntegration of commitments in terms of policies	olicy for administrative and auditing bodies
		of oste taliane; Responsible nvestment
		olicy of Banco osta Fondi pA GR;
		Responsible nsurance olicy of oste Vita;
		Responsible nvestment olicy of oste Vita;
		Group olicy on nvironmental
		ustainability; olicy on ersonal Data
		rotection; olicy on Community initiatives;
		ntegrated policy; Active arenting upport
		olicy; LGB Q+ nclusion olicy
		Report on Operations: oste taliane's
		Corporate Governance (p 28-31); Chapter 7
		(p 246; 266; 310; 329; 353; 371; 390; 413);
		taff raining and Development (p 267-278)
	2-25 rocesses to remedy	Report on Operations: Chapter 6 Risks and
	negative impacts	Opportunities (p 123-171)

Poste Italiane Group Report on Operations at 31 December 2023

		Whistleblowing Guidelines
	2-26 Mechanisms for requesting clarification and raising concerns	Report on Operations: takeholder engagement (p 105-106); he Multistakeholder Forum 2023 (p 106-107)
	2-27 Compliance with laws and regulations	Report on Operations: Chapter 7 nvironmental impacts of real estate facilities (p 354); ndicators tables (p 430; 440; 454)
	2-28 Membership of associations	Report on Operations: he Group nvironmental ocial and Governance ( G) trategic lan- (p 113-117); Dialogue and transparency in relations with the authorities (p 342-346)
Stakeholder Engagement
	2-29 Approach to stakeholder	Report on Operations: takeholder
GRI 2 - General Disclosures -	engagement	engagement (p 105-106)
Version 2021	2-30 Collective contracts	Report on Operations: Relations with social partners (p 298-303)

GRI Standard	Disclosure	Location	Omission
MATERIAL TOPICS
GRI 3 - Material topics - Version 2021	3-1 rocess of determining material topics 3-2 List of material topics	Report on Operations: oste taliane's sustainability strategy (p 102-117) Report on Operations: oste taliane's sustainability strategy (p 104-105; 109-110)
Work with transparency and integrity
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); Working with transparency and integrity (p 247-253); Correlation table between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
GRI 205: Anti-corruption	205-1 ransactions assessed for corruption risks	Chapter 7 ndicators tables (p 426)
	205-3 stablished incidents of corruption and action taken	Chapter 7 ndicators tables (p 426-427)
	207-1 Approach to tax	Report on Operations: he Materiality Matrix
	207-2 Fiscal governance, control and risk management	(p 107-109); oste taliane's ustainability trategy (p 102-117); Fiscal transparency
GRI 207 (2019): Taxes	207-3 takeholder engagement and management of concerns related to tax	policies (p 253-254); Correlation table between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
	207-4 Country-by-Country Reporting	Chapter 7 ndicators tables (p 430-431)
GRI 415: Public policy	415-1 olitical Contributions	n line with the provisions of the Group's ntegrated olicy, in 2023, oste taliane made no contributions of any kind, either directly or indirectly, to political parties, movements, committees and political and labour union organisations, or to their representatives or candidates, either in taly or abroad

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Legality and incorporation of ESG criteria within the procurement process
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); Legality and G integration in the procurement process (p 257-265); Correlation table between areas of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
GRI 301: Materials	301-1 Materials used by weight or volume	Chapter 7 ndicators tables (p 429)
	301-2 Materials used that originate from recycling	Chapter 7 ndicators tables (p 429-430)

Personnel training and development
	3-3 Managing Material opics	Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
		trategy (p 102-117); ersonnel training and
GRI 3 - Material topics - Version		development (p 267-278); Correlation table
2021		between the scope of the Decree, oste
		taliane material sustainability topics and GR
		tandards (p 522-524)
GRI 404: Training and	404-1 Average hours of annual
education	training per employee	Chapter 7 ndicators tables (p 434)
Staff welfare and well-being
	3-3 Managing Material opics	Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
		trategy (p 102-117); ersonnel welfare and
GRI 3 - Material topics - Version		well-being (p 288-297); Correlation table
2021		between the scope of the Decree, oste
		taliane material sustainability topics and GR
		tandards (p 522-524)
	401-2 Benefits provided for full
GRI 401: Employment	time employees, but not for part	Chapter 7 ndicators tables (p 438)
	time or fixed-term employees
Relations with social partners
	3-3 Managing Material opics	Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
GRI 3 - Material topics -		trategy (p 102-117); Relations with the
		social partners (p 298-303); Correlation table
Version 2021		between the areas of the Decree, oste
		taliane material sustainability issues and
		GR tandards (p 522-524)

GRI 402: Relations between employees and management	402-1 Minimum notice periods for operational changes	For oste taliane and Group companies signatories of the oste taliane ational Collective Labour Contract: four weeks (25 working days from the date of the first meeting with the Labour Unions, including aturday) for talks at national level; a further 2 weeks (13 working days, including aturday) is provided for in order to endorse any agreement reached by trade union representation (R U) Coordination; an additional week (7 working days, including aturday) for talks at local level DA: the ational Collective Labour Contract provides, in art 44, in case of transfer, transformation or termination of the Company, the procedure provided for by art 47 of Law 229 December 1990 no 428 raising the deadline for communication to the trade unions to 40 days if the transfer of business concerns more than 60 employees
Occupational health and safety
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics
GRI 403 (2018): Occupational health and safety	403-1 Occupational health and safety management system 403-2 Hazard identification, risk assessment and accident investigation 403-3 Occupational health services 403-4 Worker participation and consultation and communication on occupational health and safety 403-5 Worker training on occupational health and safety 403-6 romotion of worker health 403-7 revention and mitigation of occupational health and safety impacts directly linked by commercial relationships	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); Occupational health and safety (p 303-309); Correlation table between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
	403-8 Workers covered by an occupational health and safety management system	Chapter 7 ndicators tables (p 440-442)
Protection of human rights at the Company	403-9 Work-related injuries	Chapter 7 ndicators tables (p 442-443)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); rotection of Human Rights in the Company (p 311-320); Correlation able between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
GRI 405: Diversity and equal	405-1 Diversity in governance
opportunity	bodies and among employees	Chapter 7 ndicators tables (p 451-452)
Equal career development opportunities
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); qual career development opportunities (p 320-328); Correlation table between areas of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
GRI 404: Training and education	404-3 ercentage of employees receiving periodic performance and professional development assessments	Chapter 7 ndicators tables (p 453-454)
	Support for the socio-economic development of local communities
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); upporting the socio economic development of the territory (p 330-342); Correlation table between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
GRI 201: Economic performance	201-1 Direct economic value generated and distributed	Report on Operations: Highlights (p 18-19); ndicators tables (p 455)
GRI 203: Indirect economic impacts	203-1 nfrastructure investments and services financed	Chapter 7 ndicators tables (p 456)
	Dialogue and transparency in relations with the authorities
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); Dialogue and transparency with institutions (p 342-346); Correlation table between the scope of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
Financial inclusion
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); Financial inclusion (p 346-352); Correlation table between the areas of the Decree, oste taliane material sustainability issues and GR tandards (p 522-524)
	F 14 nitiatives to improve access to financial services for disadvantaged people	Chapter 7 ndicators tables (p 458)
Environmental impacts of real estate facilities
GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability

		trategy (p 102-117); nvironmental mpacts of real estate facilities (p 354-364); Correlation table between the areas of the Decree, oste taliane material sustainability issues and GR tandards (p 522-524)
	302-1 nergy consumption within the organisation	Chapter 7 ndicators tables (p 460; 466)
GRI 302: Energy	302-2 nergy consumption outside the organisation	Chapter 7 ndicators tables (p 460; 467; 468)
	302-3 nergy intensity	Chapter 7 ndicators tables (p 461)
	302-4 Reducing energy consumption	Chapter 7 ndicators tables (p 467)
		Report on Operations: nvironmental
	303-1 nteraction with water as a	mpacts of real estate facilities (p 354-364);
	shared resource	able showing the link with the scope of the
	303-2 Management of water	Decree, oste taliane material sustainability
GRI 303 (2018): Water and	discharge-related impacts	topics and GR tandards (p 522-524)
Water discharges		Chapter 7 ndicators tables (p 461)
		Currently, there is no evidence that oste
	303-3 Water withdrawal	taliane withdraws water from water-stressed
		areas herefore, this value is zero
	305-1 Direct GHG emissions
	(Scope 1)	Chapter 7 ndicators tables (p 462; 466)
	305-2 Indirect GHG emissions
	from energy consumption (Scope	Chapter 7 ndicators tables (p 462; 466)
GRI 305: Emissions	2)
	305-3 Other indirect GHG emissions (Scope 3)	Chapter 7 ndicators tables (p 462; 467; 468)
	305-4 mission intensity GHG	Chapter 7 ndicators tables (p 467)
	305-5 Reducing GHG emissions	Chapter 7 ndicators tables (p 467; 468)
	306-1 Waste generation and	Report on Operations: nvironmental
	significant waste-related impacts	mpacts of real estate facilities (p 354-364);
	306-2 Management of significant	able showing the link with the scope of the
	waste-related impacts	Decree, oste taliane material sustainability
		topics and GR tandards (p 522-524)
	306-3 Waste generated
	306-4 Waste diverted from	Chapter 7 ndicators tables (p 463)
	disposal
	306-5 Waste directed to disposal
Environmental impacts of logistics
		Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
	3-3 Managing Material opics	trategy (p 102-117); nvironmental mpacts
GRI 3 - Material topics - Version 2021		of logistics (p 364-370); Correlation table
		between the areas of the Decree, oste
		taliane material sustainability issues and
		GR tandards (p 522-524)
GRI 302: Energy	302-1 nergy consumption	Chapter 7 ndicators tables (p 460; 469)
	within the organisation
	302-2 nergy consumption	Chapter 7 ndicators tables (p 460; 469)
	outside the organisation
	302-3 nergy intensity	Chapter 7 ndicators tables (p 461)
GRI 305: Emissions	305-1 Direct GHG emissions (Scope 1)	Chapter 7 ndicators tables (p 462; 469)

	305-2 Indirect GHG emissions
	from energy consumption	Chapter 7 ndicators tables (p 462; 469)
	(Scope 2)
	305-3 Other indirect GHG
	emissions (Scope 3)	Chapter 7 ndicators tables (p 462; 469)
Quality and customer experience
		Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
GRI 3 - Material topics -		trategy (p 102-117); Quality and customer
Version 2021	3-3 Managing Material opics	experience (p 372-382); Correlation table
		between the areas of the Decree, oste
		taliane material sustainability issues and
		GR tandards (p 522-524)
Cyber Security, IT Security and Privacy
		Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
		trategy (p 102-117); Cyber security,
GRI 3 (2021): Material topics	3-3 Managing Material opics	security and rivacy (p 382-389); Correlation
		table between the scope of the Decree,
		oste taliane material sustainability topics
		and GR tandards (p 522-524)
	418-1 Proven complaints
	regarding violations of customer
GRI 418: Customer privacy	privacy and loss of customer	Chapter 7 ndicators tables (p 477)
	data
	Innovation and digitisation of products, services and processes
		Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
		trategy (p 102-117); nnovation and
GRI 3 - Material topics -		digitalisation of products (p 391-412),
Version 2021	3-3 Managing Material opics	services and processes; Correlation table
		between the scope of the Decree, oste
		taliane material sustainability topics and GR
		tandards (p 522-524)
Integration of ESG factors into investment policies
		Report on Operations: he Materiality Matrix
		(p 107-109); oste taliane's ustainability
	3-3 Managing Material opics	trategy (p 102-117); G integration into
GRI 3 - Material topics -		investment policies (p 414-421); Correlation
Version 2021		table between areas of the Decree, oste
		taliane material sustainability topics and GR
		tandards (p 522-524)
		In 2023, Poste Vita and BancoPosta Fondi
		SGR - Poste Italiane Group companies
		operating in the investment sector -
	F 11 ercentage of assets	subjected their portfolios to social and
	subject to positive and negative	environmental screening by an external
	environmental or social screening	body. This assessment concerned 94.8% of
		Banco osta Fondi GR's corporate AuM
		and 100% of Banco osta Fondi GR's AuM
		in government bonds.
Integration of ESG in insurance policies

Poste Italiane Group Report on Operations at 31 December 2023

GRI 3 - Material topics - Version 2021	3-3 Managing Material opics	Report on Operations: he Materiality Matrix (p 107-109); oste taliane's ustainability trategy (p 102-117); G integration in insurance policies; Correlation table between areas of the Decree, oste taliane material sustainability topics and GR tandards (p 522-524)
	F 11 ercentage of assets subject to positive and negative environmental or social screening	In 2023, Poste Vita and BancoPosta Fondi SGR - Poste Italiane Group companies operating in the investment sector - subjected their portfolios to social and environmental screening by an external body. This assessment concerned 95% of oste Vita's total AuM

TCFD CONTENT INDEX

n 2021, the Company became an official supporter of the CFD ( ask Force on Climate Related Disclosures), further underwriting its commitment to creating a more resilient financial system through climate-related disclosure he following Content index provides a more intuitive understanding of how oste taliane's climate strategy is aligned with the organisation's recommendations

Recommendations References

Governance

Organisational Governance Disclosure

Board oversight of climate-related risks and opportunities

he role of management in assessing and managing climate-related risks and opportunities

Strategy

Disclosure of the impacts of climate-related risks and opportunities on the organisation's business, strategy and financial planning

Actual and potential impacts of climate-related risks and opportunities, identified to date, on the organisation's business, strategy and financial planning in the short, medium and long term

Describe the climate-related risks and opportunities that the organisation has identified

Describe the resilience of the organisation's strategy, considering different climate scenarios, including scenarios of temperatures at or below 2°C

The Corporate Governance of Poste Italiane (p.28-31); Managing climate change risks and opportunities (p.142- 150)

The European Taxonomy Regulation; Managing climate change risks and opportunities (p.497-518); Managing emerging risks and related opportunities (p.142-150); Green transition (p.353-370)

Risk management

Disclosure of how the organisation identifies, assesses and manages climate-related risks

Describe the organisation's processes for identifying and assessing climate-related risks

Describe the organisation's processes for managing climate-related risks

Climate-related risks and opportunities are integrated into current decisionmaking and strategy formulation

Metrics and targets

Disclosure of metrics and targets used to manage climate-related risks and opportunities

Disclosure of the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process

Disclosure of greenhouse gas emissions (GHG)

Describe the plans used by the organisation to manage climate-related risks and opportunities and performance against targets

Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets

The Materiality Matrix (p.107-109); The Group's Sustainability Policies (p.111- 113); The Group's Environmental, Social and Governance (ESG) Strategic Plan (p.113-117); Managing Climate Change Risks and Opportunities (p.142- 150); Managing Emerging Risks and Related Opportunities (p.151-171)

The European Taxonomy Regulation (p.497-518); Poste Italiane's Integrated Internal Control and Risk Management System (p.124-129); Risks associated with material issues and how to manage them (p.130-136); Managing climate change risks and opportunities (p.142- 150); The management of emerging risks and related opportunities (151- 171); Green transition (p.353-370); Tables of indicators (p.425-481)

OTHER REFERENCE STANDARDS AND GUIDELINES FOR THE PREPARATION OF THE INTEGRATED FINANCIAL STATEMENTS

he correlation tables in this section: " owards Common Metrics and Consistent Reporting of ustainable Value Creation" of the World conomic Forum and the GR indicators present in the ntegrated Report; A B indicators and oste taliane ntegrated Report indicators; DGs and GR tandards indicators are not subject to a conformity assessment ("limited assurance engagement")

CORR LA O ABL B W H DOCUM " OWARD COMMO

M R C A D CO R OR G OF U A ABL VALU CR A O " OF H WORLD CO OM C FORUM A D H GR D CA OR R H GRA D R OR

eptember 2020 saw the publication of the updated version of the document " owards Common Metrics and Consistent Reporting of ustainable Value Creation", presented in January 2020 during the World conomic Forum in Davos, which defines a set of universal indicators for G performance applicable by all companies, regardless of business area, with the aim of making non-financial disclosures more easily comparable he indicators are organised into four pillars: Governance, lanet, eople and rosperity

aking into consideration the indications provided by the document, the table below shows the "material G metrics" outlined in this ntegrated Report

PILLAR	TOPIC	DESCRIPTION	GRI indicators in the Sections of the Report
Governance	Governing Purpose	Definition of the purpose	GR 2-12
	Quality of Governing Body	Composition of the Board	GR 2-9
			GR 405-1
	Stakeholder engagement		GR 2-12
		mpact of material problems on stakeholders	GR 2-29
			GR 3-2
	Ethical behaviour	Anti-corruption	GR 205-3
		ublic olicy	GR 415-1
	Risk and opportunity oversight	ntegrating risks and opportunities into the business	GR 3-3
	Expanded metrics and disclosures

	Quality and Governing Body	Remuneration	GR 2-19 GR 2-21
	Stakeholders Engagement	takeholder engagement process	GR 3-1
Planet	Climate change	Greenhouse Gas missions (GHG)	GR 305-1 GR 305-2 GR 305-3
	Dignity and equality	Diversity and inclusion (%) Assessment of human rights compliance, impact of the complaint and modern slavery (#, %)	GR 405-1
People	Health and Well Being	Health and safety (%)	GR 403-6 GR 403-9
	Skills for the Future	raining provided (#)	GR 404-1
	Expanded metrics and disclosures
	Dignity and Equality	Freedom of association and collective bargaining	GR 2-30
Prosperity	Employment and wealth generation	et number of jobs created conomic contribution	GR 401-1 GR 201-1 GR -203-1
	Community and social vitality	otal fees paid	GR 201-1 GR 207-4

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

CORR LA O ABL B W A B D CA OR A D D CA OR OF H GRA D R OR OF O AL A

GR (Global Reporting nitiative) and A B ( ustainability Accounting tandards Board) are the most internationally recognised standards for the definition of sustainability reporting strategies and systems n view of the growing importance of A B reporting for investors, the following table shows the correspondence with the indicators used in the 2023 ntegrated Report

SASB		2023 INTEGRATED REPORT
Topic	Indicator	Reference to paragraphs/indicators
Sector – INSURANCE
Transparent Information & Fair Advice for Customers	F - -270a	⦁ oste taliane's sustainability strategy ⦁ Quality and customer experience ⦁ Monthly complaints ⦁ Customer complaints by type
Incorporation of ESG Factors in Investment Management	F - -410a	⦁ oste taliane's sustainability strategy ⦁ ntegration of G factors into investment policies ⦁ ntegration of G factors into insurance policies ⦁ ercentage of assets subject to positive and negative environmental or social screening regarding social/environmental aspects
Policies Designed to Incentivize Responsible Behaviour	F - -410b	⦁ oste taliane's sustainability strategy ⦁ Offering investment products with environmental and social value ⦁ nsurance products with social and environmental value
Environmental Risk exposure	F - -450a	⦁ oste taliane's sustainability strategy ⦁ Managing climate change risks and opportunities
Systemic Risk Management	F - -550a	⦁ Managing emerging risks and related opportunities
Sector – ASSET MANAGEMENT
Transparent Information & Fair Advice for Customers	F -AC-270a	⦁ oste taliane's sustainability strategy ⦁ Quality and customer experience ⦁ Monthly complaints ⦁ Customer complaints by type
Employee Diversity & Inclusion	F -AC-330a	⦁ oste taliane's sustainability strategy ⦁ Diversity and inclusion ⦁ Classification of employee by category, gender and age group ⦁ umber of personnel by other diversity indicators ⦁ umber of personnel by type of employment and gender, by business line ⦁ umber of personnel by type of contract and gender, by business line
Incorporation of ESG Factors in Investment Management & Advisory	F -AC-410a	⦁ oste taliane's sustainability strategy

Poste Italiane Group Report on Operations at 31 December 2023

Business Ethics	F -AC-510a	⦁ ntegration of G factors into investment policies ⦁ ntegration of G factors into insurance policies ⦁ ercentage of assets subject to positive and negative environmental or social screening regarding social/environmental aspects ⦁ oste taliane's sustainability strategy ⦁ Work with transparency and integrity ⦁ oste taliane's commitment to managing human rights risks ⦁ Companies assessed for risks related to corruption and percentage of operations audited for risks related to corruption ⦁ Reports managed by the Whistleblowing Committee ⦁ Anti-competitive practices ⦁ pecific training on procedures and policies of anti
Sector – AIR FREIGHT & LOGISTICS		corruption ⦁ Cases of bribery and corruption and corrective actions ⦁ olitical contributions ⦁ Approach to taxation
Greenhouse Gas Emissions	R-AF-110a	⦁ oste taliane's sustainability strategy ⦁ Green transition ⦁ otal direct GHG emissions ( cope 1) ⦁ otal indirect GHG emissions ( cope 2) ⦁ ntensity of GHG emissions related to real estate facilities ⦁ nternal Group energy consumption ⦁ xternal Group energy consumption
Air Quality	R-AF-120a	⦁ oste taliane's sustainability strategy ⦁ Other direct emissions from logistics activities ⦁ Other indirect emissions from logistics activities
Labour Practices	R-AF-310a	⦁ oste taliane's sustainability strategy ⦁ Relations with social partners ⦁ rotection of human rights at the Company ⦁ Disputes
Employee Health & Safety	R-AF-320a	⦁ oste taliane's sustainability strategy ⦁ Occupational health and safety ⦁ ype of accidents, rate of recordable occupational accidents, rate of occupational accidents with serious consequences, absenteeism rate and rate of deaths resulting from work-related accidents in the Group
Supply Chain Management	R-AF-430a	⦁ oste taliane's sustainability strategy

		⦁ nvironmental impacts of logistics ⦁ otal other indirect GHG emissions ( cope 3)
Sector – COMMERCIAL BANKS
Data Security	F -CB-230a	⦁ oste taliane's sustainability strategy ⦁ Risk management and risk assessment model ⦁ Cyber ecurity, ecurity and rivacy ⦁ rivacy violations and data leaks ⦁ security and cyber security breaches ⦁ umber of customers involved in security breaches
Financial Inclusion & Capacity Building	F -CB-240a	⦁ oste taliane's sustainability strategy ⦁ Financial inclusion ⦁ ew customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions ⦁ A Ms for inclusion ⦁ ost offices for cultural integration
Business Ethics	F -CB-510a	⦁ oste taliane's sustainability strategy ⦁ Work with transparency and integrity ⦁ Companies assessed for risks related to corruption and percentage of operations audited for risks related to corruption ⦁ Reports managed by the Whistleblowing Committee ⦁ Anti-competitive practices

2023 Annual Report
Poste Italiane Group	Report on Operations at 31 December 2023
		⦁ pecific training on procedures and policies of anti
		corruption
		⦁ Cases of bribery and corruption and corrective
		actions
		⦁ olitical contributions
		⦁ Approach to taxation
Systemic Risk Management	F -CB-550a	⦁ Risk management and risk assessment model

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023 CORRELATION TABLE BETWEEN THE SDGS AND THE GRI STANDARDS INDICATORS SDG Topic GRI Indicator Goal 1 – No poverty nd poverty in all its forms everywhere • Access to financial services • F 14 • axation • 207-1 • 207-2 • 207-3 • 207-4 Goal 3 – Good health and wellbeing nsuring healthy living and promoting the well-being of everyone at all ages • Air quality • 305-1 • 305-2 • 305-3 • Waste management • 306-1 • 306-2 • 306-3 • 306-4 • 306-5 • Occupational health and safety • 403-2 • 403-3 • 403-6 • 403-9 Goal 4 – Quality education nsure inclusive and equitable quality education and promote lifelong learning opportunities for all • mployee training and education • 404-1 Goal 5 – Gender equality • Gender equality in governing bodies • 2-9 • 2-10 MAIN RELATED TYPES OF CAPITAL

2023 Annual Report

Achieve gender equality and empower all
women and
girls
	• nfrastructure investment	• 203-1
	• Gender equality in	• 401-2
	employee training	• 404-1
		• 404-3
	• Gender equality	• 405-1
	• ustainable water	• 303-1
Goal 6 – Clean water and	withdrawals	• 303-2
sanitation		• 303-3
	• Waste management	• 306-1
nsure availability and sustainable		• 306-2
management of water and sanitation for		• 306-3
all		• 306-4
		• 306-5
Goal 7 – Affordable and	• nergy efficiency	• 302-1
clean energy		• 302-2
	• Renewable energy	• 302-1
nsure access to affordable, reliable, sustainable and modern energy for all		• 302-2
Goal 8 – Decent work and economic growth	• Access to financial services	• F 14
	• nformation on employees	• 2-7
romote sustained, inclusive and	and non-employees	• 2-8
sustainable economic growth, full and productive employment and decent	• Collective bargaining agreements	• 2-30
work for all	• nfrastructure investment	• 201-1
	• fficiency in materials used	• 301-1

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

	•	nergy efficiency	•	302-1
			•	302-2
	•	Waste management	•	306-2
	•	arnings, wages and benefits	•	401-2
	•	Relations between employees and management	•	402-1
	•	Occupational health and	•	403-1
		safety	•	403-2
			•	403-3
			•	403-4
			•	403-5
			•	403-7
			•	403-8
			•	403-9
	•	mployee training and	•	404-1
		education	•	404-3
	•	Diversity and equal opportunity	•	405-1
Goal 9 – Industry, innovation	•	nfrastructure investment	•	201-1
and infrastructure			•	203-1
Build resilient infrastructure, promote
inclusive and sustainable industrialisation and foster innovation

Goal 10 – Reduced
inequalities	• nformation on employees	• 2-7
	and non-employees	• 2-8

2023 Annual Report Poste Italiane Group		Report on Operations at 31 December 2023
		•		•
			axation	•	207-1
Reduce inequalities within and among					207-2
countries				•	207-3
				•	207-4
		•	Fair training of employees	•	404-1
				•	404-3
	Goal 11 – Sustainable cities and	•	nfrastructure investment	•	203-1
	communities	•	Waste management	•	306-1
				•	306-2
				•	306-3
	Make cities and human settlements inclusive, safe, resilient and sustainable			•	306-4
				•	306-5
		•	Materials	•	301-1
			efficiency/recycling
		•	nergy efficiency	• •	302-1 302-2
	Goal 12 – Responsible	•	Water withdrawals by	•	303-1
	consumption and		source	•	303-3
	production	•	Air quality	•	305-1
				•	305-2
nsure sustainable consumption and production patterns				•	305-3
		•	Waste management	•	306-1
				•	306-2
				•	306-3
				•	306-4
				•	306-5
		•	nergy efficiency	•	302-1
Goal 13 – Climate action				•	302-2
		•	GHG emissions	•	305-1
				•	305-2
ake urgent action to combat climate				•	305-3
change and its impacts

2023 Annual Report Poste Italiane Group Report on Operations at 31 December 2023

	Goal 17 - Partnership for the	•	axation	•	207-1
	goals			•	207-2
				•	207-3
				•	207-4
trengthen the means of
implementation and revitalize the global
	partnership for sustainable development

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

10. GLOSSARY

ACQUIRING

All the services provided by an independent party (Acquirer) aimed at managing authorisations for payments made with cards belonging to national and international circuits, by virtue of an agreement with the merchant

ASSET ALLOCATION

t is a strategy implemented by the investor and aimed at diversifying his or her portfolio across different asset classes, based on his or her time and expected return objectives

ATM (AUTOMATED TELLER MACHINE)

his is an automated counter, activated directly by users by inserting their card and typing in their (personal identification code), which allows them to carry out both ordering and informative operations (e g balance request or movement list)

Market segment involving the exchange of products or services between a company as sender and companies or individuals as recipients

BTP (MULTI-YEAR TREASURY BONDS)

Medium-/long-term talian government bonds he return is given by six-monthly fixed-rate interest coupons and the difference between the redemption price, equal to the nominal value (100), and the issue or subscription price on the secondary market

BUFFER

he agreement with the Ministry of conomy and Finance (M F) provides that a percentage of the funds deriving from private customer deposits may be placed in a special "Buffer" account at the M F, with the objective of ensuring flexibility with regard to investments in view of daily movements in amounts payable to current account holders

CAPITALIZATON

With reference to a company, it represents the product of the number of outstanding shares and their unit price; with reference to a market, it represents the total value at market prices - of all listed securities

he word comes from chat- chat and bot- short for robot t is a virtual assistant able to answer a series of questions, interpreting the customer's intentions he application is frequently used by large companies in customer service: typing in a question gives the impression of talking to a person

Literally "computer cloud", it refers to the technology that allows data to be processed and stored on a network and enables access to applications and data stored on remote hardware instead of the local workstation HYBRID CLOUD is a solution that combines a private cloud with one or more public cloud services, with proprietary software enabling communication between each service A hybrid cloud strategy offers companies greater flexibility by moving workloads between cloud solutions according to needs and costs

t is the innovative payment method that allows to make purchases by simply bringing the card close to the card reader ( O terminal) with the Contactless symbol; the transaction takes place in a few moments

CONTAINERIZATION

possibility of increasing the processing resources available to the system in real time, and the portability of applications between the on premises infrastructure and the public cloud of oste taliane's Hybrid cloud platform

CONTRACTUAL SERVICE MARGIN (CSM)

t represents for the Company the expected and unrealised profit that it must represent in the statement of profit or loss, over the life of the contract

COVERAGE UNIT

he Contractual ervice Margin (C M) is the quantity through which the pattern is defined and represents the amount of insurance services rendered during the year (e g the volume of mathematical provisions for the period compared to the total volume projected over the duration of the insurance contracts)

CREDIT CARD

t is a payment instrument that enables the holder, on the basis of a contractual relationship with the issuer, to make purchases (via O or online) of goods or services at any establishment belonging to the relevant international circuit or cash withdrawals (via A Ms) he amounts spent are debited to the cardholder at predefined intervals in arrears (usually monthly) either as a lump sum ("classic" credit card) or in instalments (the so-called instalment/revolving credit card)

DEBIT CARD

A card that allows holders, on the basis of a contract with their bank or the ost Office, to purchase (via O ) goods and services at any establishment merchants belonging to the circuit to which the card is authorised or to withdraw cash (via A Ms) with immediate debit from the current account linked to the card he best known circuit is the Bancomat circuit, hence the name by which it is commonly referred to f the card is linked to international circuits, it can be used abroad both for withdrawals of local currency and for making payments, by entering the same secret code ( ) as is used domestically for A M withdrawals and O withdrawals in shops

he term refers to all payments made using electronic means, such as credit cards, debit and prepaid cards, digital wallet, telephone credit, direct debit to current account, for the purchase of goods and services

DIGITAL PROPERTIES

he digital properties (website, Banco osta app, oste ay app, Ufficio ostale app, oste D app) represent one of the 3 channels of customer care to support the Group's omnichannel strategy

DIGITAL WALLET OR ELECTRONIC WALLET

t is a virtual wallet within which one can load credit or combine one or more payment instruments such as credit, debit, prepaid or current account cards, in order to carry out transactions without sharing the private information of the payment method with the seller

Average maturity of bond payments t is generally expressed in years and corresponds to the weighted average of the dates of payment of the cash flows (the so-called cash flows) from the security, where the weights assigned to each date are equal to the present value of the corresponding cash flows (the various coupons and, for the maturity date, also the principal) t is an approximate measure of the sensitivity of the price of a bond to changes in interest rates

ETF (EXCHANGE TRADED FUNDS)

hese are special passively managed investment funds (or icav) that are traded on regulated markets, belonging to the broader xchange raded roducts ( ) family, which replicate the performance of an underlying index (e g the F M B)

FINANCIAL DURATION OF THE PORTFOLIO

Average of the durations of the securities within the portfolio.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

FTSE MIB (FINANCIAL TIMES STOCK EXCHANGE MILAN STOCK EXCHANGE INDEX)

t is the most important index of the Milan tock xchange where the securities with the highest market capitalisation and liquidity are gathered On the F M B are listed a total of 40 stocks representing companies, the majority of which belong to the banking, insurance and industrial sectors

GENERAL MODEL (GM) OR BUILDING BLOCK APPROACH (BBA)

he General Model is a methodology for the valuation of insurance contracts based on the discounting of expected cash flows, on the explication of the Risk Adjustment cash flow adjuster for non-financial variables) and a Contractual ervice Margin (present value of expected profit)

GROSS PREMIUMS

Amount accrued during the reporting period for insurance contracts, irrespective of whether these amounts have been collected or whether they relate in whole or in part to subsequent years

HIGH-YIELD SECURITIES

hese are high-yield (and high-risk) bonds issued by companies, sovereign states or other entities in financial distress, which are given a low rating ( tandard & oor's rating of BB or lower) High Yield bonds are often referred to as Junk Bonds

HOME BANKING (INTERNET BANKING)

his is an online service that allows current account holders to carry out various information and order operations on their current account via the nternet (checking account statements, making online credit transfers, post transfers, online payments, etc ), without having to physically go to their bank or post office

HYBRID - MULTI-CLASS POLICY

n multi-class products, a part of the premium is invested in separately managed accounts and determines the guaranteed capital share, while a part is invested in unitlinked funds, which are characterised by diversified asset allocations that aim to seize return opportunities by investing in funds linked to financial market trends

INFORMATION SECURITY(CYBER SECURITY)

his term is intended to represent the tools and processes needed to ensure the security of computers, networks, commonly used devices (such as smartphones and tablets), applications and databases, protecting them from potential attacks that may come from inside or outside the organisation Cyber ecurity has become increasingly important because protecting digital technologies, protects processes and above all information, which are the true assets of individuals and organisations

INSURANCE CLASS

An insurance class is defined as a category into which it is possible to classify policies pertaining to the same, or similar, type of risk wo macro sections can be distinguished:

• • &C insurance: covers policies that intervene to compensate the client in the event of material and physical damage, relating to personal property, assets, person;

&C contracts are divided into the following classes:

1 Accidents (including accidents at work and occupational diseases); lump sum benefits; temporary benefits; mixed forms; transported persons;

2 Health: lump sum benefits; temporary benefits; mixed forms 3 Land vehicles (excluding rail vehicles): all damage suffered by: self-propelled land vehicles; nonself-propelled land vehicles;

4 Railway vehicle bodies: any damage suffered by railway vehicles;

5 Aircraft bodies: any damage suffered by aircraft;

6 ea, lake and river vehicles: all damage suffered by: river vehicles; lake vehicles; sea vehicles;

7 ransported goods (including goods, luggage and any other property): any damage suffered by transported goods or luggage, regardless of the nature of the means of transport;

8 Fire and natural elements: any damage suffered by property (other than property included in classes 3, 4, 5, 6 and 7) caused by: fire; explosion; storm; natural elements other than storm; nuclear energy; land subsidence;

9 Other damage to property: any damage suffered by property (other than property included in classes 3, 4, 5, 6 and 7) caused by hail or frost, as well as any other event, such as theft, other than those included in class 8;

10 Land motor vehicle liability: any liability arising out of the use of land motor vehicles (including carrier's liability); 11 Aircraft liability: any liability arising out of the use of aircraft (including carrier's liability);

12 ea, lake and river vehicle liability: all liability arising from the use of river, lake and sea vehicles (including carrier's liability)

13 General Liability: any liability other than those mentioned in no 10, 11 and 12;

14 Credit: asset losses from defaults; export credit; hire purchase; mortgage credit; agricultural credit;

15 Bail: direct bail; indirect bail; 16 Financial losses of various kinds: risks related to employment; insufficient income (general); bad weather; loss of profits; persistent overhead; unforeseen business expenses; loss of market value; loss of rents or income; indirect business losses other than those mentioned above; noncommercial financial losses; other financial losses;

17 Legal protection: legal protection;

18 Assistance: assistance to people in difficult situations

• Life class: this includes policies taken out in order to guarantee a lump sum to the chosen beneficiaries indicated in the insurance contract, upon the occurrence of the event that is the subject of the policy (e g the death of the insured in the case of a death policy)

Poste Italiane Group Report on Operations at 31 December 2023

Life insurance policies are further divided into six classes:

Class - Life insurance;

Class - uptial and birth insurance;

Class - nsurance included in classes and , the main benefits of which are directly linked to the value of units in collective investment undertakings or internal funds or to indices or other reference values;

Class V - Health insurance and insurance against the risk of non-self-sufficiency covered by long-term, noncancellable contracts for the risk of severe disability due to illness or accident or longevity;

Class V - Capitalisation operations;

Class V - Management operations of collective funds set up to provide benefits in the event of death, survival or cessation or reduction of employment

INVESTMENT GRADE

Definition referring to securities issued by companies with regular financial statements, well managed and favourable business prospects n the case of investment grade securities, the rating is high and in any case higher than triple B Below that level, instead, there is the world of high-yield instruments, i e high-risk instruments, characterised by low ratings that reflect the danger of default or insolvency

LIABILITY FOR INCURRED CLAIM (LIC)

t is the liability that quantifies the issuer's obligation to compensate for insured events that have already occurred (incurred claims)

LIABILITY FOR REMAINING COVERAGE (LRC)

t is the liability that quantifies the issuer's obligation to provide cover for insured events that have not yet occurred

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

MANAGEMENT FEES

Fees paid to the manager by direct debit from the fund's assets to remunerate management activity in the strict sense hey are calculated daily on the fund's net assets and drawn at larger intervals (monthly, quarterly, etc ) hey are generally expressed on an annual basis

MERCHANT

erson carrying out a commercial activity

MUTUAL FUNDS

hese are collective investment undertakings, managed by asset management companies (AMC), which pool the liquidity provided by their clients and invest it, as a single asset, in movable financial assets (shares, bonds, government securities, etc ) or, for some of them, in real estate assets, respecting rules aimed at reducing risk ach investor becomes the owner of a number of units whose value varies over time and according to the performance of the securities purchased by the Management Company with the fund's assets here are different types of funds, classified, for example, according to the type of financial instruments in which they invest (e g uropean equities or American bonds) or according to the type of profit-sharing of investors Funds can be either "closed" (with the subscription of units only during the offer period and the redemption of units taking place, as a rule, only at the Fund's maturity) or "open" (with the subscription and redemption of units at any time)

OPEN APIs (APPLICATION PROGRAM INTERFACES)

rocedures and interfaces that enable two applications to communicate and exchange data An A that does not require payment of fees for its access and use is called "open"

OPEN BANKING

haring of data between different players in the banking ecosystem With the entry into force of the uropean Digital ayments Directive ( D2), uropean banks are obliged to open up their A (Application rogram nterface) to fintech companies and other companies involved in financial products and services his allows external companies (third parties) access to payment data thus increasing competition in the system

OTP (ONE TIME PASSWORD)

A one-time password or one-time code is a security alphanumeric code generated by an algorithm, at the user's request, to gain access to a system or to authorise specific transactions, e g in home banking operations . t is a very secure authentication system since the code is sent directly to a device in the holder's possession ( M on mobile phone, token, etc ) and once used is no longer valid

A device equipped with a screen that can electronically capture graphometric signatures (also recording nonvisible biometric data, such as pressure, movement and speed) and display QR codes

PENSION FUNDS

hey are collective investment undertakings that collect employees' and/or employers' contributions and invest them in financial instruments for the purpose of providing a pension benefit (life annuity or lump sum) at the end of an employee's working life that is supplementary to the mandatory public system here are various forms of pension funds: egotiated (or closed) funds, openended funds, individual pension plans ( or F ), preexisting pension schemes

PISP (PAYMENT INITIATION SERVICE PROVIDERS)

ubjects who, with the express authorisation of the customer, provide the service of arrangement of payment orders in favour of the customer; they act as intermediaries between the Bank and the holder of the payment account - accessible online - they initiate the payment in favour of a third party, the beneficiary of the order

t is the telematic location (consisting of a device for the automatic payment of purchases) where payment transactions take place, using debit or credit cards through their chips or magnetic stripes Connected to the banking system, it allows merchants to have sums credited to their bank account and buyers to settle purchases without using physical money

PREMIUM ALLOCATION APPROACH (PAA)

he AA is an insurance contract valuation methodology used to simplify the measurement of certain types of contracts, compared to the General Model his model is used by the Company, in particular, for the following types of contracts:

• Short-term P&C insurance (not exceeding one year);
• Some multi-year contracts as long as they give the same result as the General Model.

PREPAID CARD

ayment instrument, issued against an advance payment of funds made to the issuer, the value of which decreases each time it is used to make payments or withdrawals With a prepaid card, it is possible, without using cash, to purchase (via O or online) goods or services, or to withdraw cash at A Ms and with the use of a , within the limits of the amount previously paid to the issuing institution repaid cards are issued by banks, electronic money institutions ( M L) and the talian ost Office Reloadable prepaid cards have a maximum reloadable value that differs from issuer to issuer and can be reloaded several times he prepaid card can also be equipped with an BA ( nternational Bank Account umber), which allows the main operations of a current account to be carried out, by means of transfers or direct debits, such as, for example, crediting wages or pensions, and paying utility bills With the prepaid card, it is possible to make purchases without using cash and to make withdrawals and other transactions at A Ms belonging to the payment circuit indicated on the card

QR CODE (QUICK RESPONSE CODE)

t is a type of barcode depicted by a square with dots and lines of different sizes inside hrough special apps, multimedia content can be accessed by simply framing the QR code with the smartphone camera

he policyholder's right to terminate the contract early by requesting payment of the benefit resulting at the time of the request and determined in accordance with the contractual conditions

ransaction whereby an insurer (the reinsured) - for a fee - reduces its economic exposure, either on a single risk (optional reinsurance) or on a large number of risks (compulsory or treaty reinsurance), by transferring to another insurer (the reinsurer) part of its liabilities arising from insurance contracts

REPO (REPURCHASE AGREEMENT)

Repurchase agreements consist of a spot sale of securities and a simultaneous forward repurchase commitment (for the counterparty, in a symmetrical commitment of spot purchase and forward sale)

RISK ADJUSTMENT

his refers to the adjustment of cash flows related to insurance contracts, reflecting uncertainty due to nonfinancial risks (e g mortality risk, longevity risk, early termination risk, assumption risk, catastrophe risk)

SALARY-BACKED LOANS ("CESSIONE DEL QUINTO")

t is a special type of guaranteed financing, intended for pensioners and employees he repayment of instalments is made by assigning a portion of the pension or salary to the lender his share, deducted directly from the pension or pay slip, may not exceed the fifth part of the net monthly emolument his type of financing requires insurance to cover life risk (for ensioners) and

life and loss of employment risk (for mployees) he policies are underwritten directly by the Bank/Financial Company (as policyholder and beneficiary), which bears the costs he customer is not required to pay any insurance premium

SEPARATELY MANAGED ACCOUNTS

n life insurance, a fund specifically created by the insurance undertaking and managed separately from the overall business of the undertaking eparately managed accounts are used in Class contracts and are characterised by a typically conservative investment composition he return obtained by the separately managed account and relegated to the members is used to revalue the benefits under the contract

SOLVENCY RATIO

he olvency Ratio is calculated as the ratio between the own funds eligible to cover the capital requirement and the regulatory minimum level calculated on the basis of the olvency regulation

SPID - PUBLIC DIGITAL IDENTITY SYSTEM

he ublic Digital dentity ystem ( D) is the talian digital identity solution, managed by Ag D in accordance with national legislation and the uropean e DA regulation he D system allows holders of a digital identity (natural persons and legal entities), issued by an accredited manager, to access with a single set of credentials the services provided by participating public and private entities oste taliane is one of the accredited Digital dentity managers

STRONG CUSTOMER AUTHENTICATION (SCA)

SCA or STRONG CUSTOMER AUTHENTICATION requires that all electronic payment transactions, and some remote transactions that carry a risk of fraud, be confirmed and authorised by combining two or more authentication factors, chosen from something that only the person making the transaction possesses (an app on a mobile device or a key that generates O codes ), or an element of inherence, i e something that uniquely distinguishes the user (a fingerprint, facial geometry, or another biometric feature)

UNIT-LINKED POLICY

A life policy for which the investment risk is borne by the policyholder and whose benefits are directly linked to units in collective investment undertakings or to the value of assets held in an internal fund

VARIABLE FEE APPROACH (VFA)

he Variable Fee Approach (VFA) is a valuation methodology that applies to insurance contracts with direct profit-sharing features, such as insurance pension funds, separately managed accounts and unit-linked insurance policies

2

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

POSTE ITALIANE'S FINANCIAL STATEMENTS AT 31 DECEMBER 2023

545

O AL A ' F A C AL A M

2023 Annual Report

AT 31 DECEMBER 2023

	Detailed table of contents

1. INTRODUCTION 547
2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES548
3. MATERIAL EVENTS DURING THE YEAR598
4 POSTE ITALIANE GROUP 601
5. POSTE ITALIANE SPA - FINANCIAL STATEMENTS AT 31 DECEMBER 2023686
6. RISK MANAGEMENT760
7. FAIR VALUE OF FINANCIAL INSTRUMENTS810
8. HEDGING TRANSACTIONS818
9. PROCEEDINGS PENDING AND PRINCIPAL RELATIONS WITH THE AUTHORITIES 824
10. MATERIAL NON-RECURRING EVENTS AND/OR TRANSACTIONS833
11. EXCEPTIONAL AND/OR UNUSUAL TRANSACTIONS833
12. MATERIAL EVENTS AFTER THE END OF THE REPORTING PERIOD833
13. ADDITIONAL INFORMATION834
14. BANCOPOSTA RFC SEPARATE REPORT FOR THE YEAR ENDED 31 DECEMBER 2023857

1. INTRODUCTION

Poste Italiane SpA (the " arent Company") is the company formed following conversion of the former ublic Administration entity, " oste taliane", under Resolution 244 of 18 December 1997 ts registered office is at Viale uropa 190, Rome ( taly)

oste taliane's shares have been listed on the Mercato elematico Azionario (the M A, an electronic stock exchange) since 27 October 2015 At 31 December 2023, the Company is 35% owned by CD and 29 3% owned by the M F, with the remaining shares held by institutional and retail investors oste taliane pA continues to be under the control of the M F At 31 December 2023, the arent Company holds 10,675,798 treasury shares (equal to around 0 817% of the share capital)

he Poste Italiane Group (the "Group") provides a universal postal service in taly as well as integrated communication, logistics, financial and insurance products and services throughout the country via its national network of approximately 13,000 post offices

he Group's business is assessed and presented on the basis of four operating segments: (i) Mail, arcels and Distribution, (ii) ayments and Mobile, (iii) Financial ervices and (iv) nsurance ervices

n addition to the mail, parcel and logistics service, the Mail, arcels and Distribution segment also includes the activities of the sales network, the ost Offices and the corporate functions of oste taliane p A that provide services to the other segments in which the Group operates he sector also includes the provision of Welfare services

he ayments and Mobile ervices segment includes the management of payments and e-money services, also carried out through the network of L points of sale, as well as mobile and fixed telephone services and energy (electricity and gas) sales services to end customers by oste ay pA

he Financial ervices segment refers to the placement and distribution of financial and insurance products and services by Bancoposta, such as current accounts, postal savings products (on behalf of Cassa Depositi e restiti), mutual investment funds, loans provided by banks, policies and the activities of Banco osta Fondi pA GR

he nsurance ervices segment mainly relates to the activities of oste Vita pA, which operates in the Life insurance sector, primarily in Ministerial Classes and , and its direct and indirect subsidiaries, such as oste Assicura pA and et nsurance pA, which operate in the &C sector with the exclusion of the Motor nsurance class, and et nsurance Life pA, which mainly offers insurance coverage related and instrumental to the &C products offered by its direct parent company et nsurance pA

his section of the Annual Report (Poste Italiane's Financial Statements) at 31 December 2023 includes the consolidated financial statements of the oste taliane Group, the separate financial statements of oste taliane pA and Banco osta RFC's eparate Report he Report has been prepared in euros, the currency of the economy in which the Group operates

he Group's consolidated financial statements consist of the consolidated statement of financial position, the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and the notes to the financial statements All amounts in the financial statements and the notes are shown in millions of euros and rounded (without decimal figures), unless stated otherwise t follows that the sum of the rounded amounts may not coincide with the rounded totals

he separate financial statements of oste taliane pA consist of the statement of financial position, the statement of profit or loss, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the notes Amounts in the financial statements are shown in euros (except for the statement of cash flows, which is shown in thousands of euros), whilst those in the notes are shown in millions of euros (without decimal figures), unless stated otherwise t follows that the sum of the rounded amounts may not coincide with the rounded totals

he consolidated and separate financial statements contain notes applicable to both sets of financial statements, providing information on matters common to both the Group and oste taliane pA he relevant matters specifically regard:

• the way the financial statements are presented and relevant information on accounting standards;
• disclosure of the sources and the procedures used in determining fair value;
• disclosures on risks and hedging transactions;
• a summary of the principal proceedings pending and relations with the authorities;
• and, in general, certain additional disclosures required by accounting standards, whose presentation in a single section is designed to provide the reader with better information (e g the analysis of share-based payment arrangements, key data on equity investments held, etc )

Banco osta RFC's eparate Report, which forms an integral part of oste taliane pA's financial statements, prepared in accordance with the specific financial reporting rules laid down by the applicable banking regulations, is dealt with separately in this ection

he consolidated financial statements of the oste taliane Group and the separate financial statements of oste taliane pA (including the eparate tatement of Banco osta RFC) for the year ended 31 December 2023 were approvedby the Board of Directors on 19 March 2024, the date on which publication was authorised in accordance with A 10-Events after the reporting period

2. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

2.1 COMPLIANCE WITH IAS/IFRS

he annual accounts are prepared in accordance with the nternational Financial Reporting tandards (" FR ") issued by the nternational Accounting tandards Board (" A B"), and endorsed by the uropean Union (" U") in C Regulation 1606/2002 of 19 July 2002, and in accordance with Legislative Decree 38 of 28 February 2005, which introduced regulations governing the adoption of FR in talian law

he term FR includes all the nternational Financial Reporting tandards, nternational Accounting tandards (" A ") and interpretations issued by the nternational Financial Reporting nterpretations Committee (" FR C", previously known as the tanding nterpretations Committee or " C"), adopted by the uropean Union and contained in the U Regulations in force at 31 December 2023, regarding which no derogations were made

2.2 BASIS OF PRESENTATION

he accounting standards reflect the full operations of the Group and oste taliane pA in the foreseeable future As a going concern, oste taliane Group companies prepare their financial statements on a going concern basis, also taking account of the Group's economic and financial outlook, as reflected in the new 2024-2028 strategic plan approved by the Board of Directors on 19 March 2024

he statement of financial position has been prepared on the basis of the "current/non-current distinction"17F ¹⁷⁸ n the tatement of profit (loss) for the year, the classification criterion based on the nature of the cost components has been adopted; details of interest income calculated using the effective interest criterion, as well as gains and losses deriving from the derecognition of financial assets measured at amortised cost (as per A 1 - Presentation of Financial Statements

¹⁷⁸ Current assets include assets (such as inventories and trade receivables) that are sold, consumed or realised as part of the normal operating cycle even when they are not expected to be realised within twelve months after the reporting period (IAS 1, par. 68).

prepared under the indirect method178F

paragraph 82) are provided in section 4 3 otes to the tatement of profit or loss he statement of cash flows has been 179

he accounting standards and the recognition, measurement and classification criteria adopted in these annual accounts are the same as those used in the previous year's preparation, with the exception of what is stated in ection 2 3 - New accounting standards and interpretations

he disclosures provided in these annual financial statements take into account the guidelines and recommendations of the talian and uropean regulatory and supervisory bodies ( MA and Consob179F ¹⁸⁰) published during the year in order to provide a guideline in the current macroeconomic context he accounting implications of complying with these recommendations are described in section 2 7 - Climate change and macroeconomic environment.

n preparing the annual accounts, the CO OB regulations contained in Resolution 15519 of 27 July 2006 and in Ruling D M/6064293 of 28 July 2006 have been taken into account

n accordance with CO OB Resolution 15519 of 27 July 2006, the statement of financial position, the statement of profit or loss and the statement of cash flows show amounts deriving from related party transactions he statement of profit or loss also shows, where applicable and of significant amount, income and expenses deriving from non-recurring transactions, or transactions that occur infrequently in the normal course of business Detailed information about nonrecurring events and transactions, including their impact on the financial position, results of operations and cash flows of the company and/or the group, is provided in the section "Material non-recurring events and/or transactions"

he values shown in the financial statements are compared with the corresponding values for the same period of the previous year n this regard, it should be noted that certain figures for the year of comparison have been adjusted and reclassified to take into account the new provisions of FR 17 - Insurance Contracts, which came into force on 1 January 2023

ursuant to article 2447-septies of the talian Civil Code, following the creation of Banco osta's ring-fenced capital in 2011, the assets and contractual rights included therein (hereafter: "Banco osta RFC") are shown separately in oste taliane pA's statement of financial position, in a specific supplementary statement, and in the notes to the financial statements

With regard to the interpretation and application of newly published, or revised, international accounting standards, and to certain aspects of taxation180F ¹⁸¹, where the related interpretations are based on examples of best practice or case-law that cannot yet be regarded as exhaustive, the financial statements have been prepared on the basis of the relevant best practices and the guidelines agreed with the ax Authorities as part of "cooperative compliance" Any future guidance or updated interpretations will be reflected in subsequent reporting periods, in accordance with the specific procedures provided for by the related standards

¹⁷⁹ Under the indirect method, net cash from operating activities is determined by adjusting profit/(loss) for the year to reflect the impact of non-cash items, any deferment or provisions for previous or future operating inflows or outflows, and revenue or cost items linked to cash flows from investing or financing activities.

¹⁸⁰ Public statement ESMA32-193237008-1793 of 25 October 2023 "European common enforcement priorities for 2023 annual financial reports" and Consob communication of 27 October 2023.

¹⁸¹ The tax authorities have issued regular official interpretations only in respect of certain of the tax-related effects of the measures contained in Legislative Decree 38 of 28 February 2005, Law 244 of 24 December 2007 (the 2008 Budget Law) and the Ministerial Decree of 1 April 2009, implementing the 2008 Budget Law, which introduced numerous changes to IRES and IRAP. The MEF Decree issued on 8 June 2011 contains instructions regarding the coordinated application of EU-endorsed international accounting standards coming into effect between 1 January 2009 and 31 December 2010, in addition to regulations governing determination of the tax bases for IRES and IRAP. In addition, the new standards are subject to the rules contained in the endorsement tax decrees issued by the Ministry of the Economy and Finance, in application of the provisions of Law no. 10 of 26 February 2011 (Decreto milleproroghe).

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Finally, Directive 2004/109/ C (the " ransparency Directive") and Delegated Regulation ( U) 2019/815 introduced the obligation for issuers of securities listed on regulated markets in the uropean Union to prepare their annual financial report in a single electronic reporting format ( uropean ingle lectronic Format), approved by MA n application of this standard, the Annual Report was prepared in XH ML format, including the "marking" of the otes to the Consolidated Financial tatements, as well as those of the related financial statements, using the MA- FR taxonomy and the integrated computer language (iXBRL)

2.3 NEW ACCOUNTING STANDARDS AND INTERPRETATIONS AND THOSE SOON TO BE EFFECTIVE

Accounting standards and interpretations applicable from 1 January 2023

• IFRS 17 - Insurance Contracts he new accounting standard on insurance contracts, which fully replaced the provisions of FR 4, aims to:
  • o ensure that an entity provides information that fairly represents the rights and obligations arising from the insurance contracts issued;
  • o eliminate inconsistencies and weaknesses in existing accounting policies by providing a single principlebased framework to account for all types of insurance contracts (including reinsurance contracts); and
  • o improve comparability between entities belonging to the insurance sector by providing for specific presentation and disclosure requirements
• Amendments to IAS 1 - Presentation of Financial Statements aimed at helping preparers of financial statements to provide information on accounting policies that is more useful to investors and primary users of financial statements by replacing the requirement to disclose "significant" accounting policy information with the requirement to provide on material accounting policy information and how they are applied within the company
• Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors to clarify the distinction between changes in accounting estimates, Changes to accounting policies and error corrections
• Amendments to IAS 12 - Income Taxes to clarify how deferred taxes should be accounted for on certain transactions involving the simultaneous recognition of an asset and a liability of equal amount, such as leases and decommissioning obligations he purpose of this amendment is to reduce diversity in the recognition of deferred tax assets and liabilities on such transactions;
• Amendments to IAS 12 – Income Taxes: International Tax Reform - Model Rules (Second Pillar) he amendments to the standard introduced a temporary exception to the accounting for deferred taxes in connection with the application of the provisions of illar wo published by the Organisation for conomic Cooperation and Development (hereinafter "O CD"), as well as targeted supplementary information for affected companies

With the exception of the first-time application of FR 17, the impact of which on the oste taliane Group's financial position is described in ection 2 4 - Changes to accounting policies below, the adoption of the other changes outlined above did not have a significant impact on the financial information in the financial statements With reference to the new provisions of A 1 relating to material information on accounting policies, these are reflected in ection 2 5 - Material Information on accounting standards; while the information required by the amendment to A 12 on international tax reform is given below

he provisions of the O CD illar wo were introduced into the regulatory framework of the uropean Union with U Council Directive 2022/2523 of 14 December 2022, which in turn was implemented in taly by Legislative Decree 209 of 27 December 2023 (hereinafter also referred to as the "Decree") he objective of international tax reform is to ensure a minimum level of taxation, at the rate of 15 per cent, of multinational corporations in each jurisdiction in which they operate At the reporting date of these financial statements, the oste taliane Group, although falling within the scope of the regulations, does not have a second-pillar income tax exposure because at 31 December 2023 the provisions of the Decree are in force, but are not effective with regard to this Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he oste taliane Group will apply the exception to the recognition and disclosure of deferred tax assets and liabilities related to second-pillar income taxes, as permitted by the relevant accounting standard

n the meantime, the Group is analysing the exposure to the econd illar provisions for the period in which they will be effective, and preliminary analyses, based on simplifying assumptions and historical data (i e average effective tax rates calculated in accordance with paragraph 86 of A 12), have shown that the econd illar legislation is not expected to generate any additional current tax liabilities

n particular, based on its current ownership structure, the oste taliane Group is present in four jurisdictions: taly, China, Hong Kong, UK Based on the analyses carried out, the average effective tax rates appear to be higher than 15%; therefore, the level of effective taxation of the Group companies operating in the various jurisdictions would not appear to be such as to result in the application of a domestic/supplementary minimum tax

However, these valuations are not precise, as they are not based on the concrete and full application of all adjustments provided for in the Decree, and there may be differences between the average effective tax rate calculated in accordance with paragraph 86 of A 12 and that calculated in accordance with the provisions of illar 2

n addition, it should be noted that the level of effective taxation of foreign companies should ensure the application of general transitional regimes ( ransitional afe Harbour) that provide for the reduction of any supplementary tax due for these jurisdictions to zero for the first three tax periods from the implementation of the legislation (2024-2026)

Finally, it should be emphasised again that, due to the complexity in the application of the legislation and the calculation of total relevant income, the quantitative impact cannot yet be reasonably estimated, and that the analyses performed on the level of effective taxation of Group companies for the year 2023, may also differ significantly from those that will take place once the legislation is fully implemented, due to the implications of the illar wo rules

Accounting standards and interpretations soon to be effective

he following are applicable from 1 January 2024:

• Amendment to IFRS 16 Leases: Lease Liabilities in a Sale and Leaseback he purpose of the amendment is to specify how the selling lessee is to measure the lease liability arising from a sale and leaseback in such a way that it does not recognise income or loss in respect of the retained right of use;
• Amendments to IAS 1 - Presentation of Financial Statements to provide clarification on how entities should classify payables and other liabilities between current and non-current, and to improve the information that an entity must provide when its right to defer settlement of a liability for at least 12 months is subject to covenants

At the reporting date, the A B has issued the following amendments, still not yet endorsed by the uropean Commission:

• Amendments to A 7 tatement of Cash Flows and FR 7 Financial nstruments: Disclosures: upplier Finance Arrangements;
• Amendments to A 21 he ffects of Changes in Foreign xchange Rates: Lack of xchangeability

he potential impact on the oste taliane Group's financial reporting of the accounting standards, amendments and interpretations due to come into effect is currently being assessed t should also be noted that the Group has not arranged for the early adoption of any standards, interpretations or amendments that have been issued but are not yet in force

2.4. CHANGES TO ACCOUNTING POLICIES

From 1 January 2023, the oste taliane Group has adopted IFRS 17 – Insurance Contracts issued under Regulation ( U) no 2021/2036 of the Commission of 19 ovember 2021

nformation on the nature and effects of the new accounting standard and the related impact of the first-time adoption of the standard on the oste taliane Group's statement of financial position is provided below

cope of application

FR 17 introduces new recognition, measurement and valuation rules for contracts that meet the definition of an "insurance contract"18F ¹⁸²; the new standard applies to insurance contacts issued, reinsurance contracts held, and investment contracts with discretionary participation features Within the oste taliane Group, therefore, insurance contracts and investment contracts with discretionary participation features issued by the Companies belonging to the oste Vita Group182F ¹⁸³, as well as reinsurance contracts held by them, fall within the scope of the new standard

With regard to the contracts issued by the other oste taliane Group companies, no elements were identified that could be brought within the definition of an insurance contract, i e , although falling within this definition, the Group opted to continue applying FR 15 and/or FR 9 as permitted by FR 17

Level of portfolio aggregation

he oste taliane Group has defined a process for aggregating the contracts falling within the scope of FR 17, which envisages an initial distinction between Life and &C business and then a distinction into different Contract ortfolios and different Unit Of Accounts ortfolios contain contracts with similar contractual and risk characteristics that are managed in a unified manner With regard to the Life business, contract groups are aggregated by product type (e g ure eparately Managed Accounts, Multi-class, term life insurance, etc ), while for the &C business, the level of aggregation coincides with the lines of business (e g those defined for olvency reporting); in some cases (such as for the companies et nsurance pA and et nsurance Life pA, hereinafter jointly referred to as the " et Group") they are further subdivided in order to comply with the characteristics of specific products For business related to reinsurance contracts held, the Unit of Account is equivalent to the individual treaty with the counterparty

Contract portfolios can be further disaggregated according to the underwriting year of the policies (cohorts)183F ¹⁸⁴ and the level of profitability For this purpose, an onerousness test of the products is carried out to divide the Units of Account into:

• profitable;
• onerous;
• that at the time of initial recognition do not have a high probability of becoming onerous

he following describes the process for defining the onerousness test according to the relevant business:

• Life business: for contracts issued by oste Vita pA, the test is performed at the product level (where applicable also at the cohort level) in the design phase of the same (ex ante) exclusively for new products, determining the estimated future flows of fulfilment at the date For contracts issued by et nsurance Life pA, on the other hand, the test is carried out on individual tariffs he analysis is repeated in the event of significant events that may affect the costliness of the product in the first year of life;
• &C business: for contracts issued by the Company oste Assicura pA, the test is performed on the basis of the Combined Ratio184F ¹⁸⁵ at the time of the initial recognition of the contract group by defining the onerousness on a permanent basis until the maturity of the policies For contracts issued by et nsurance pA, the test takes into account estimated future fulfilment flows at the date and is performed at the contract group level according to business type

¹⁸² An insurance contract is a contract under which one party accepts a significant insurance risk from another party, agreeing to indemnify the insured or the beneficiary in the event that the latter suffers loss as a result of a specific event, (i.e. the insured event)

¹⁸³ Poste Vita SpA, Poste Assicura SpA, Net Insurance SpA and Net Insurance Life SpA.

¹⁸⁴ For Separately Managed Accounts and Multi-class insurance products, the exemption has been implemented in the application of annual cohorts permitted by Regulation (EU) no. 2021/2036.

¹⁸⁵ Ratio of claims and expenses incurred to premium volume, also taking into account the Adjustment for nonfinancial risk.

Groups of insurance contracts are recognised at the date of initial recognition he oste taliane Group has defined in detail which, for each type of business and its underlying products, is the date that identifies the start of the contractual relationship hese dates (e g effective date, renewal date, accession date, etc ) were chosen according to the specificities of the products issued For the insurance contracts acquired as a result of the et Group business combination, the initial recognition date was set at 1 April 2023, the date identified for the urchase rice Allocation process

Measurement models

he general model for measuring insurance contracts, called the Building Block Approach - BBA, involves defining the financial flows associated with the insurance contract, consisting of:

• cash inflows and outflows;
• an adjustment that takes into account the time value of money and the financial risks associated with the flows themselves;
• an adjustment for non-financial risk (risk adjustment)

he final result of the sum of the preceding components, if positive, determines the Contractual ervice Margin (C M) that will be issued over the life of the insurance contract according to the so-called Coverage Unit, while if negative the Loss Component, recognised immediately in the statement of profit or loss

he standard provides two further measurement models:

• remium Allocation Approach AA, an optional and alternative model to the general model, is applicable to contracts characterised by a coverage period of no more than one year, as well as to contract groups for which the company considers that simplification linked to the model would not lead to a significantly different result from that obtained with the general model (for example, absence of variability of cash flows associated with the contract group);
• Variable Fee Approach VFA, a mandatory measurement model for contracts with direct participation features, such as separately managed accounts and unit-linked insurance

Within the oste taliane Group, groups of insurance contracts with at least one of the following characteristics are measured using the AA method:

• One-year Duration;
• Multi-Year Duration and belonging to the Collective Business (Contract Groups = Collective);
• Multi-Year Duration and belonging to a ortfolio where the weight of the Multi-year Business is less than or equal to 5% in the last 3 years

With reference to the VFA, adopted exclusively for the Life business, the Group assessed the eligibility for the model for the following types of products:

• With rofit articipating ( eparately Managed Accounts);
• Unit-linked standalone insurance;
• Hybrid products with investment components (Multi-class)

he AA model is applied to &C business, with the exception of the C products185F ¹⁸⁶, which are measured through the adoption of the BBA as they do not meet the conditions for the application of the simplified model he BBA is also adopted for products belonging to the Life business for which the VFA model does not apply

¹⁸⁶ Credit Protection Insurance: is a special multi-risk insurance contract that seeks to protect the insured against a series of events that may occur during the term of a loan (mortgage, personal loan or other form of credit), thus preventing adverse situations from impairing its regular repayment capacity.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

2023 Annual Report

lements for determining future fulfilment flows

n application of the BBA and VFA models, future cash flows associated with insurance contracts are estimated by taking into account the "contract boundary", in order to identify whether a particular contractual option should be included in the cash flow projection as soon as the contract is issued or whether the exercise of that option would result in the recognition of a new contract group he oste taliane Group has borrowed contract boundary identification techniques from the olvency context186F ¹⁸⁷, except in the case of &C business contracts with tacit renewal that were no longer terminable at the valuation date, which define the generation of a new contract group and, therefore, a new cohort n the Life business, pure risk policies, cases of conversion into annuities, automatic maturity deferrals and additional payouts can generate a new fulfilment cash flow; while in the &C business, additional considerations can be made about product repricing clauses, the presence of variable sums insured and cases of lapse with return of unearned premium

n accordance with the provisions of the standard, all costs directly attributable to the management of insurance contracts, including costs incurred in the acquisition of contracts, are also taken into account in the construction of the fulfilment cash flows With particular reference to acquisition costs, the Group considers directly attributable to insurance contracts the costs incurred internally for placement through the oste taliane network, placement commissions paid to the network outside the Group (mainly for the et Group), rappels187F ¹⁸⁸ and other direct and indirect acquisition costs

Adjustment for non-financial risk

When assessing insurance contracts, it is necessary to consider the Risk Adjustment component, i e the remuneration that the Companies of the oste taliane Group require to assume risks of a non-financial nature o determine the Adjustment for non-financial risk, the oste taliane Group has decided to use the percentile metric According to this approach, the Adjustment for non-financial risk represents the potential loss in relation to the obligations assumed towards the policyholders ( nsurance liabilities) that the Companies would incur, at a given level of probability (percentile level), to cover the insurance risks assumed, thus reflecting the risk appetite of the Companies themselves his element is calculated separately for Life and &C business he confidence level identified to quantify the Adjustment for non-financial risk is 70% for both &C and Life businesses

n order to determine the amount of the Adjustment for non-financial risk, among other elements, the olvency valuation framework was taken into account, considering the same scope of underlying risks For details of the risks considered, see ection "2.6 - Use of estimates - Insurance liabilities"

he Adjustment for non-financial risk may change as a result of changes in the risks to which the Group is exposed hese effects may have an impact on the statement of financial position if they relate to future services, affecting the total value of the Contractual ervice Margin, and on the statement of profit or loss through the period release of this component, which occurs on the basis of a defined coverage unit

Discount rate

For the purposes of determining the discount rate to be used for discounting future cash flows, the oste taliane Group has decided to adopt a "bottom-up approach" for the derivation of discount curves borrowed from olvency , in which the reference Basic Risk Free Curve is based on the Risk Free Rate curve provided by O A

he Basic Risk Free curve, depending on the specific business, may be adjusted to take into account specific lliquidity remiums (a component representing the level of liquidity of the counterparty) calibrated to portfolios or at Company level

¹⁸⁷ Legal references "Eiopa Guidelines on Contract Boundaries - Consolidated Version" of 31 January 2023 and Commission Delegated Regulation (EU) 2015/35 of 10 October 2014, Article 18 "Contract Boundaries".

¹⁸⁸ Additional remuneration over and above the commission paid to intermediaries (agents and brokers) on the achievement of predetermined objectives (production, technical, etc.).

lease refer to section "2.6 - Use of estimates - Insurance liabilities" for detailed information on the discount curves used per individual portfolio

ffect on the statement of profit or loss

he new standard changed the representation of the profitability of the insurance business from a presentation of results by volume (premiums issued and claims expenses) to a representation more focused on contract margins

Revenue from the insurance business consist of the releases of liabilities under insurance contracts for the period, including the Contractual ervice Margin (CSM) component n addition, costs directly related to insurance contracts, including costs incurred by the network for insurance contract placement and distribution activities performed by the arent Company and outside the Group, are allocated to revenue

For non-profitable insurance contracts, the relevant Loss Component is recognised immediately in the statement of profit or loss n the event that, at subsequent reporting dates, there is an improvement in the group of onerous contracts, the oste taliane Group Companies have provided for a method of recovering the loss component on a risk-based approach by which the release of the loss component is calculated in proportion to the period's release of the cash flows related to claims, expenses and risk adjustment

n the case of an onerous contract, if reinsurance coverage is provided, it is necessary to identify the so-called Loss Recovery Component he result of the reinsurance contract ( et Gain/ et Cost) will be adjusted in each reporting period to take into account the recovery of the loss component of the direct covered contract

n addition to the issuance of the C M and the possible recognition of the loss component, further elements capable of impacting the statement of profit or loss in the reporting period are described below:

• nvestment component i e the amount under the insurance contract that the issuing entity must pay to the counterparty even if the insured event does not occur, for which the standard does not require recognition in the underwriting result he Group identifies the investment component for contracts in the Life business and defines it, for investment products and annuities in the accumulation phase, as the difference between the liquidated value and the lapse value net of penalties; for certain annuities that are certain to be paid out, the value of the investment component corresponds to the value of the benefits paid out Finally, with respect to the reinsurance business, the investment component is identified in the context of contracts or treaties that provide for scaled commissions or profit participating;
• Financial costs/revenue related to the insurance business, refer to the effects deriving from the change in the time value of money and the financial risk which, as envisaged by the standard, are calculated separately for each measurement model For the VFA portfolio, financial costs/revenue are recognised either in the tatement of profit or loss or in Other Comprehensive ncome (OC ) in relation to the result of the fair value of the Underlying tems and depending on the FR 9 classification of the underlying assets themselves; for the BBA measurement model, on the other hand, financial costs/revenue are calculated on the basis of the valuation curves adopted for the calculation of FR 17 flows

n the tatement of profit or loss tables, for the sake of clarity, the cost components that are allocated to insurance margins in accordance with FR 17 are shown under "Allocation of costs directly attributable to insurance contracts"

Accounting policy under FR 17

he choices made by the Group in applying the provisions of the standard are summarised below:

• Risk mitigation: the oste Group does not plan to adopt risk mitigation, i e , the option not to recognise changes in the C M to account for some or all of the changes in the time effect of money and non-financial risk;
• OC Option: for insurance contracts with direct participation elements for which the underlying elements are owned, the Group opts to disaggregate the finance income or expenses into rofit for the eriod and Other Comprehensive ncome, based on the results of FR 9, which defines the valuation of the underlying elements

he oste taliane Group also provides that, for contracts measured using the VFA model, the fair value income generated by the underlying assets measured under FR 9, relating to finance income from separately managed assets, commissions and technical interest attributable to unit-linked policies, is passed on to policyholders based on the percentage weight of the Mathematical rovisions at the date (mirroring) he value of the returns generated by the assets related to the insurance liabilities is deducted from the profit retained by the Group (overhedging) and then allocated to the individual units of account;

• xception to the use of annual cohorts18F ¹⁸⁹: the oste taliane Group adopts the exemption option189F ¹⁹⁰, limited to the portfolios pertaining to the Line of Business "With rofit articipating" and the hybrid products with separately managed components of oste Vita hese contracts will therefore not be divided into annual cohorts, but will be managed together due to the mutualisation effect of returns190F ¹⁹¹, typical of separately managed accounts he exception is not applicable for &C business;
• Method of presentation of the result of the outward reinsurance business: the Group has chosen a net presentation for the reinsurance result

mpacts of first-time adoption of FR 17

he oste taliane Group elected to apply FR 17 starting from its mandatory effective date of 1 January 2023, without early application As required by the new standard, the transition date to FR 17 has been set at 1 January 2022 On that date, the Group defined the following transition methods, in compliance with the transitional provisions of the new standard, which concerned the insurance companies oste Vita pA and oste Assicura pA:

• for the Life business, the Modified Retrospective Approach was adopted for the investment portfolio and the Fair Value approach for the pure risk portfolio;
• for &C business, on the other hand, the Fair Value Approach was adopted

At 1 January 2022 the oste taliane Group considered the application of the Full Retrospective Approach because the available database for past years did not have the granularity and detail required to perform the valuation required by the accounting standard; therefore, the Modified Retrospective Approach was applied as the transition method for almost all insurance contracts he complexity and high effort required to retrieve the historical data necessary for the application of the Modified Retrospective Approach resulted in the application of the Fair Value Approach for the remaining part of the contracts

n applying the Modified Retrospective Approach, as required by the standard, the Group has adopted simplifications compared to the Full Retrospective Approach, mainly related to the profit on contracts net of the Adjustment for nonfinancial risk n applying this approach, a historical depth of contracts of about 10 years was also considered, including policies issued since 2012 and still outstanding at the transition date his simplification was adopted because the portfolio thus constructed is a good approximation of the overall portfolio, as positions issued prior to 2012 have a percentage

¹⁸⁹ Cohort means the division of contracts according to the year of signing

¹⁹⁰ During the endorsement of the final version of the standard, an exemption from the application of the annual cohorts was envisaged deriving from the fact that in insurance practice the rules for revaluation of insurance liabilities are a function of the returns on the financial assets related to them, calculated through a common management of these assets and therefore not differentiated according to the specific sub-portfolios included in a specific separately managed account or between years of product generation. The presence of cohorts generates complexities in terms of quantifying the "mutualisation effect" arising from the inclusion of different Units of Account (new production) in a pool of Units of Account pertaining to pre-existing portfolios, as well as complexities in terms of allocation of return on assets to specific Units of Account that could generate distorting effects in IFRS 17 results.

¹⁹¹ Intergenerational mutuality is generated on those products of long duration that provide for the entry of policyholders even at different times in the life of the product. In these cases, the mutualisation effect makes it possible to offset losses and gains from portfolio management between the different generations of policyholders participating in the product.

weight that is considered residual n the application of the Fair Value Approach (FVA), the value of the C M of the &C business was determined as the premium reserve net of acquisition commissions, while for the Life business, used for the contract group measured by BBA, it was determined as the present value of future profits net of the Adjustment for nonfinancial risk

he oste taliane Group, and thus also the two insurance companies oste Vita and oste Assicura, has been applying FR 9 since 1 January 2018 Following the adoption of FR 17, there were no changes to the classification and measurement rules for financial assets

t should be noted that the two et Group companies were acquired during 2023 and, therefore, after the transition date of 1 January 2022

he following tables show the effects of the transition to FR 17 at 1 January 2022 recognised by individual item in the financial statements he Group tatement of financial position also incorporates the changes introduced by A 1 - Presentation of Financial Statements following the new accounting standard

					(€m)
ASSETS	31/12/2021 IFRS 4 balances	Accounting entries eliminated	Reclassified accounting items	Effects of IFRS 17 measurement	1 January 2022 restated
roperty, plant and equipment	2,267	-	-	-	2,267
nvestment property	32	-	-	-	32
ntangible assets	873	-	-	-	873
Right-of-use assets	1,116	-	-	-	1,116
nvestments accounted for using the equity method	277	-	-	-	277
Financial assets	221,226	-	-	-	221,226
Assets for outward reinsurance	-	-	-	48	48
rade receivables	3	-	-	-	3
Deferred tax assets	1,245	-	-	400	1,644
Other receivables and assets	4,012	-	-	-	4,012
ax credits Law no 77/2020	5,551	-	-	-	5,551
echnical provisions attributable to reinsurers	50	(50)	-	-	-
Non-current assets	236,652	(50)	-	448	237,048
nventories	155	-	-	-	155
rade receivables	2,508	-	-	-	2,508
Current tax assets	115	-	-	-	115
Other receivables and assets	1,146	-	(49)	-	1,097
ax credits Law no 77/2020	905	-	-	-	905
Financial assets	27,630	-	-	-	27,630
Cash and deposits attributable to Banco osta	7,659	-	-	-	7,659
Cash and cash equivalents	7,958	-	-	-	7,958
Total current assets	48,076	-	(49)	-	48,027
TOTAL ASSETS	284,728	(50)	(49)	448	285,076

he value of Assets increased by €348 million; this effect is attributable to:

• derecognition of the balance of echnical provisions attributable to reinsurers (only to be recognised under FR 4);

• recognition of Assets for outward reinsurance, which represents the valuation at 1 January 2022 of the Group's exposures related to reinsurance contracts assumed;
• recognition of deferred tax assets determined on the First ime Adoption reserve of FR 17 related to the accounting of Liabilities under insurance contracts;
• reclassification of Due from policyholders, which are removed from Other receivables and assets to be considered under Liabilities under insurance contracts, specifically under Liability for remaining coverage, which is reported under Liabilities

					(€m)
LIABILITIES AND EQUITY	31/12/2021 IFRS 4 balances	Accounting entries eliminated	Reclassified accounting items	Effects of IFRS 17 measurement	1 January 2022 restated
hare capital	1,306	-	-	-	1,306
Reserves	3,599	-	-	77	3,676
reasury shares	(40)	-	-	-	(40)
Retained earnings	7,237	-	-	(974)	6,262
Total equity attributable to owners of the Parent	12,102	-	-	(897)	11,205
quity attributable to non-controlling interests	8	-	-	-	8
Total	12,110	-	-	(897)	11,213
echnical provisions for insurance business	159,089	(159,089)	-	-	-
rovisions for risks and charges	693	-	-	-	693
mployee termination benefits	922	-	-	-	922
Financial liabilities	15,122	-	-	-	15,122
Liabilities under insurance contracts	-	-	-	160,334	160,334
Deferred tax liabilities	953	-	-	-	953
Other liabilities	1,749	-	-	-	1,749
Total non-current liabilities	178,528	(159,089)	-	160,334	179,774
rovisions for risks and charges	575	-	-	-	575
rade payables	2,029	-	-	-	2,029
Current tax liabilities	16	-	-	-	16
Other liabilities	1,860	-	-	-	1,860
Financial liabilities	89,610	-	-	-	89,610
Total current liabilities	94,090	-	-	-	94,090
TOTAL LIABILITIES AND EQUITY	284,728	(159,089)	-	159,437	285,076

he value of Liabilities and quity also increased by €348 million, as the combined result of a decrease in quity of €897 million and an increase in nsurance Liabilities of €1,245 million, in particular as a result of the elimination of the value of nsurance echnical rovisions recognised in accordance with FR 4 and the consequent recognition of the carrying amount of Liabilities under insurance contracts, measured in accordance with FR 17

he following is a reconciliation of equity between 31 December 2021, accounted for under FR 4, and 1 January 2022, which incorporates the effects of the changes in the new accounting standard:

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

															(€m)
								Equity
	Reserves										Capital and
	Share capital	Treasury shares	Legal reserve	BancoPosta RFC reserve	Equity instruments - perpetual hybrid bonds	Fair value reserve	Cash flow hedge reserve	Reserve for insurance contracts issued and outward reinsurance	Translation reserve	Reserve for investments accounted for using equity method	Incentive plans reserve	Retained earnings	Total equity attributable to owners of the Parent	reserves attributable to non controlling interests	Total equity
Balance at 31 December 2021	1,306	(40)	299	1,210	800	1,307	(33)	-	1	3	13	7,236	12,102	8	12,110
First time adoption effect	-	-	-	-	-	-	-	-	-	-	-	(1,373)	(1,373)	-	(1,373)
Accounting mirroring	-	-	-	-	-	7,945	-	(7,868)	-	-	-	-	77	-	77
Fiscal effect on transition	-	-	-	-	-		-	-	-	-	-	400	400	-	400
Balance at 1 January 2022	1,306	(40)	299	1,210	800	9,251	(33)	(7,868)	1	3	13	6,262	11,205	8	11,213

he application of the new accounting standard to the oste taliane Group's equity resulted in a reduction in retained earnings of €974 million (net of tax effects), partially offset by €77 million related to the mirroring effect, i e , the recognition in the statement of comprehensive income, in the new item "Reserves for insurance contracts issued and outwards reinsurance", of the change in the fair value of financial instruments measured at FV OC linked to separately managed accounts following the adoption of the OC option exercised by the oste taliane Group he final net effect was a reduction of €897 million in equity

For a better understanding of the dynamics of the new standard, a comparison of the opening FR 17 statement of financial position balances at 1 January 2022 with 31 December 2022, appropriately adjusted, is shown below

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

			(€m)
ASSETS	1 January 2022	31 December 2022	Changes
Non-current assets	237,048	211,928	(25,121)
of which
Assets for outward reinsurance	48	44	(4)
Deferred tax assets	1,644	2,601	957
Current assets	48,027	50,146	2,119
TOTAL ASSETS	285,076	262,074	(23,002)
LIABILITIES AND EQUITY	1 January 2022	31 December 2022 Changes
Total equity	11,213	7,878	(3,334)
Non-current liabilities	179,774	156,647	(23,126)
of which
Liabilities under insurance contracts	160,334	141,380	(18,954)
Liability for remaining coverage	159,372	140,348	(19,025)
Liability for remaining PAA coverage	45	56	11
Present value of future cash flows	147,547	124,330	(23,218)
Adjustment for non-financial risk	1,324	3,060	1,736
Contractual service margin	10,456	12,902	2,446
Liability for incurred claims	962	1,032	70
Cash flows related to past services	952	1,016	64
Adjustment for non-financial risk	10	17	7
Current liabilities	94,090	97,549	3,459
TOTAL LIABILITIES AND EQUITY	285,076	262,074	(23,002)

Liabilities under insurance contracts amounted to €141,380 million at 31 December 2022 and decreased by approximately €18,954 million compared to the balance at 1 January 2022 his decrease is mainly related to the decrease in the present value of future cash flows as a result of the negative financial market dynamics experienced during the year compared to the transition date he Adjustment for non-financial risk, on the other hand, increased as a result of the updated calculation assumptions used hese dynamics led to a positive effect on the Contractual ervice Margin, which, together with the effect of new production and experience variance, resulted in an increase of €2,446 million

quity at 31 December 2022, modified following the application of FR 17, decreased by approximately €1,059 million

Below is a breakdown of the summary movement in OC , gross of the tax effect, prepared in application of FR 4, already published in the 2022 Annual Report, both following the application of the new standard:

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

					(€m)
	2022 IFRS 17	of which insurance	2022 IFRS 4	of which insurance	Changes
Net profit/(loss) for the year	1,583		1,511		72
FVOC debt instruments	-
ncrease/(Decrease) in fair value during the year	(27,742)	(23,333)	(4,747)	(338)	(22,994)
ransfers to profit or loss from realisation	(286)	(136)	(161)	(10)	(125)
ncrease/(decrease) for expected losses	4	0	4	0	(0)
Cash flow hedges	(130)		(130)
Financial revenue or costs relating to insurance contracts issued	22,784	22,784	-		22,784
Financial revenue or costs related to outward reinsurance	(1)	(1)	-		(1)
Other items	1,542		1,440		102
tems not to be reclassified in the tatement of profit or loss for the year	(220)		(219)		(1)
Total other comprehensive income	(4,048)		(3,814)		(234)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	(2,465)		(2,303)		(162)

As is known, the financial year 2022 was characterised by a negative trend in the financial markets, which affected the result of the tatement of comprehensive income already at 31 December 2022 n the restated situation, the negative effect remains but is presented differently, as the new standard does not provide for the application of the shadow accounting technique n fact, the unrealised capital losses generated by the securities portfolio, amounting to €27,742 million (of which €23,333 million related to the insurance business), are shown gross of the reversal to policyholders, as the mirroring component of the financial result is accounted for in the item "Financial revenue or costs relating to insurance contracts issued", consistent with the requirements of the new standard and the amendments to A 1 Compared to the net result recorded with the application of FR 4 in the insurance business alone, which amounted to an unrealised loss of €338 million, the FR 17 result amounted to an unrealised loss of €549 million (obtained as the difference between the delta fair value of debt instruments measured at FV OC recorded in the year and pertaining to the insurance business alone and the amount retroceded to policyholders of €22,784 million) Although the value of the changing fair value of the securities portfolio remains unchanged in the application of FR 17, what changes is the representation of the "overcoverage", i e the component of the financial result related to insurance liabilities that is not passed on to policyholders but represents the Group's unrealised capital gain or loss, which is determined in a timely manner prior to the allocation of income to the individual Units of Account and mirroring

2.5 MATERIAL INFORMATION ON ACCOUNTING STANDARDS

he oste taliane Group's financial statements have been prepared on a historical cost basis, with the exception of certain items for which fair value measurement is obligatory

Below is information on accounting standards considered relevant19F ¹⁹² by the oste taliane Group, as well as all other information considered by management to be useful for understanding financial statement disclosures, revised essentially

¹⁹² Information on accounting standards is defined as material if, taken together with other information that can be inferred from the financial statements, it is believed to be able to influence the decisions made by the primary users of the financial statements. Within the Poste Italiane Group, the materiality of information is defined in relation to the

to take into account the new provisions of IAS 1 - Presentation of Financial Statements, which came into force on 1 January 2023

roperty, plant and equipment

Property, plant and equipment is stated at acquisition or construction cost, less accumulated depreciation and any accumulated impairment losses Where the condition is met, this cost is increased for charges directly related to the purchase or construction of the asset, including - where identifiable and measurable - that relating to employees involved in the planning and/or preparation for use phase nterest expense incurred by the Group for loans specifically for the acquisition or construction of property, plant and equipment is capitalised together with the value of the asset; all other interest expense is recognised as finance costs in profit or loss for the year in question Costs incurred for routine and/or cyclical maintenance and repairs are recognised directly in profit or loss in the related year he capitalisation of costs attributable to the extension, modernisation or improvement of assets owned by Group companies or held under lease is carried out to the extent that they qualify for separate recognition as an asset or as a component of an asset, applying the component approach, which requires each component with a different estimated useful life and value to be recognised and amortised separately

he original cost is depreciated on a straight-line basis from the date the asset is available and ready for use, based on the asset's expected useful life Land is not depreciated

roperty and any related fixed plant and machinery located on land held under concession or sub-concession, which is to be returned free of charge to the grantor at the end of the concession term, are accounted for, based on the nature of the asset, within property, plant and equipment and depreciated on a straight-line basis over the shorter of the useful life of the asset and the residual concession term

At each reporting date, property, plant and equipment is analysed in order to identify the existence of any indicators of impairment (in accordance with A 36 - Impairment of Assets; please refer to the treatment of impairment of assets) Gains and losses deriving from the disposal or retirement of an asset are calculated as the difference between the disposal proceeds and the net carrying amount of the asset retired or sold, and are recognised in profit or loss in the period in which the transaction occurs

he Investment property of the oste taliane Group relates to land or buildings held with a view to earn rental or lease income or for capital appreciation or both; in both cases such property generates cash flows that are largely independent of other assets he same accounting treatment is applied to investment property as to property, plant and equipment

For details of the useful life of the main classes of roperty, plant and equipment of the Group, reference should be made to ote 2 6 - Use of estimates

ntangible assets

An intangible asset is an identifiable non-monetary asset without physical substance, which is controllable and capable of generating future economic benefits he initial carrying amount is adjusted for accumulated amortisation, where an amortisation process is envisaged, and for any impairment losses

n particular, Industrial patents, intellectual property rights, licences and similar rights are initially valued at purchase cost his cost is increased for charges directly related to the purchase or preparation for use of the asset nterest expense that the Group may incur for loans specifically for the purchase of industrial patents, intellectual property rights, licenses and similar rights are capitalised together with the value of the asset; all other interest expense is recognised as finance costs in profit or loss for the year Amortisation starts once the asset is available for use Amortisation is applied on a

nature of the transactions that give rise to it, as well as the nature of the other events or conditions associated with them.

straight-line basis, in order to distribute the purchase cost over the shorter of the expected useful life of the asset and any related contract terms, from the date the entity has the right to use the asset

ndustrial patents, intellectual property rights, licenses and similar rights include costs directly associated with the internal production of unique and identifiable software products Direct costs include - where identifiable and measurable - the charge related to employees involved in software development Costs incurred for the maintenance of internally developed software products are charged to profit or loss for the year in question Amortisation begins when the asset is available for use and extends, systematically and on a straight-line basis, over its estimated useful life Any research costs are not capitalised

Among the Group's intangible assets, Goodwill represents the excess of the cost of an acquisition over the fair value of the Group's share of the identifiable assets and liabilities of the company or business acquired, at the date of acquisition Goodwill attributable to investments accounted for using the equity method is included in the carrying amount of the equity investment Goodwill is not amortised on a systematic basis, but is tested periodically for impairment in accordance with A 36 his test is performed with reference to the cash generating unit ("CGU") to which the goodwill is attributable he method applied in conducting impairment tests and the impact on the accounts of any impairment losses are described in the paragraph, " mpairment of assets"

Lastly, it should be noted that following the urchase rice Allocation activity related to the acquisition of the et Group, the value of the " et nsurance" brand was recognised among the Group's ntangible assets imilar to Goodwill, this Brand, considered to have an indefinite useful life, is not subject to systematic amortisation but to the provisions of A 36 on impairment

Lease arrangements

he Group assesses whether a contract is or contains a lease at the time of its initial recognition; over the life of the contract, the initial assessment is revised only in response to changes in the terms of the contract (specifically, contractual term or lease payments due)

On the contract commencement date, a right to use the leased asset is recorded, equal to the initial value of the corresponding lease liability, plus payments due before or at the same time as the contract commencement date (e g agency fees) ubsequently, said right of use is measured less accumulated depreciation and any accumulated impairment losses Depreciation starts on the commencement date of the lease and extends over the shorter of the lease term and the useful life of the underlying asset f events or changes in circumstances indicate that the carrying amount of the right of use cannot be recovered, this asset is tested for impairment in accordance with the provisions of A 36 - Impairment of Assets

he lease liability is initially recorded at the present value of the lease instalments not paid on the date the contract commences192F ¹⁹³, discounted using the incremental borrowing rate, defined by loan period and for each Group company he lease liability is subsequently reduced to reflect the lease payments made and increased to reflect interest on the remaining amount

he lease liability is restated (resulting in a right-of-use adjustment) in the event of a change in:

• the lease term (for example, in the case of early termination of the contract or an extension of the lease);

¹⁹³ The payments included in the initial measurement of the lease liability include:

Variable lease payments that do not depend on an index or a rate are, in contrast, not included in the initial measurement of the lease liability. These payments are recognised as a cost in the statement of profit or loss in the period in which the event or the condition giving rise to the obligation occurs.

^- fixed payments, less any lease incentives receivable;

^- variable lease payments that depend on an index or a rate, initially measured using the index or rate at the commencement date (e.g. ISTAT indexes);

^- the exercise price of a purchase option if the lessee is reasonably certain to exercise that option.

• the assessment of a purchase option for the underlying asset; in these cases, lease payments due are reviewed on the basis of the revised lease term and to take account of the change in the amounts payable in view of the purchase option;
• future lease payments deriving from a change in the index or rate used to determine the payments (e g A ), or as a result of a renegotiation of the financial conditions

Only in the case of a significant change in the lease term or in future lease payments does the Group remeasure the remaining lease liability with reference to the incremental borrowing rate at the date of the modification

he Group avails itself of the option granted by the principle to apply a simplified accounting regime to short-term contracts for some specific asset classes (with a duration of no more than twelve months), to contracts in which the individual underlying asset is of low value (up to €5,000) and to contracts in which the individual underlying asset is an intangible asset; for these contracts, lease payments are recognised in profit or loss as matching entry to short-term trade payables

mpairment of assets

At the end of each reporting period, property, plant, equipment and intangible assets with finite lives are analysed to assess whether there is any indication that an asset may be impaired f any such indication exists, the recoverable amount of the asset is estimated in order to determine the impairment loss to be recognised in profit or loss he recoverable amount is the higher of an asset's fair value less costs to sell, and its value in use, represented by the present value of the future cash flows expected to be derived from the asset n calculating value in use, future cash flow estimates are discounted using a rate that reflects current market assessments of the time value of money, the period of the investment and the risks specific to the asset he realisable value of assets that do not generate separate cash flows is determined with reference to the cash generating unit (CGU) to which the asset belongs

Regardless of any impairment indicator, the assets listed below are tested for impairment every year:

• intangible assets with an indefinite useful life or that are not yet available; the impairment test can take place at any time during the year, provided that it is performed at the same time in each of the following years;
• goodwill acquired in a business combination

An impairment loss is recognised in profit or loss for the amount by which the net carrying amount of the asset, or the CGU to which it belongs, exceeds its recoverable amount n particular, if the impairment loss regards goodwill and is higher than the related carrying amount, the remaining amount is allocated to the assets included in the CGU to which the goodwill has been allocated, in proportion to their carrying amount193F ¹⁹⁴ xcept in the case of goodwill, if the impairment indicators no longer exist, the carrying amount of the asset or CGU is reinstated and the reversal recognised in profit or loss he reversal must not exceed the carrying amount that would have been determined had no impairment loss been recognised and depreciation or amortisation been charged

nvestments

n the oste taliane Group's consolidated financial statements, investments in companies over which the Group exerts significant influence, ("associates") and in joint ventures, are accounted for using the equity method Certain particularly insignificant investments in subsidiaries (individually and in aggregate) are also valued using the equity method ee note 2 8 – Basis of consolidation.

n oste taliane pA's separate financial statements, investments in subsidiaries and associates are accounted for at cost (including any directly attributable incidental expenses), after adjustment for any impairments nvestments in subsidiaries

¹⁹⁴ If the amount of the impairment loss is greater than the carrying amount of the asset or CGU, in accordance with IAS 36, no liability is recognised, unless recognition of a liability is required by an international accounting standard other than IAS 36.

and associates are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable Any impairment losses (or subsequent reversals of impairment losses) are recognised in the same way and to the same extent described with regard to property, plant and equipment and intangible assets in the paragraph,

Financial instruments

" mpairment of assets"

On initial recognition, financial assets and liabilities are classified at fair value based on the business purpose for which they were acquired he purchase and sale of financial instruments is recognised by category, either on the date on which the Group commits to purchase or sell the asset (the transaction date), or, in the case of insurance transactions and Banco osta's operations, at the settlement date194F ¹⁹⁵ Any changes in fair value between the transaction date and the settlement date are recognised in the financial statements

On the other hand, trade receivables are recognised at their transaction price, in accordance with FR 15 - Revenue from Contracts with Customers

On initial recognition, financial assets are classified in one of the following categories, based on the business model adopted to manage them and the characteristics of their contractual cash flows:

• Financial assets measured at amortised cost

his category reflects financial assets held to collect the contractual cash flows (the held to collect or H C business model) representing solely payments of principal and interest ( ) hese assets are measured at amortised cost, that is the value assigned to the financial asset or liability on initial recognition, net of any principal reimbursement, plus or minus the cumulative amortisation by using the effective interest rate method on the difference between the initial value and the value at maturity, after deducting any impairment he business model on which the classification of financial assets is based permits the sale of such assets; if the sales are not occasional, and are not immaterial in terms of value, consistency with the H C business model should be assessed

• Financial assets measured at fair value through other comprehensive income (FV OC )

his category includes financial assets held both to collect the relevant contractual cash flows and for sale (the held to collect and sell or H C& business model), with the contractual cash flows representing solely payments of principal and interest

hese financial assets are measured at fair value and, until they are derecognised or reclassified, gains or losses from valuation are recognised in other comprehensive income xceptions to this are gains and losses due to impairment and foreign exchange gains and losses recognised in the profit or loss in the year in question f the financial asset is derecognised, the accumulated gains/(losses) recognised in OC are recycled to profit or loss

his category also includes equity instruments that would otherwise be recognised through profit or loss, for which the irrevocable election was made to recognise changes in fair value through OC (the FV OC option) his option entails the recognition of solely dividends through profit or loss

• Financial assets measured at fair value through profit or loss

his category includes: (a) financial assets primarily held for trading; (b) those that qualify for designation at fair value through profit or loss, exercising the fair value option; (c) financial assets that must be recognised at fair value through profit or loss; (d) derivative instruments, with the exception of the effective portion of those designated as cash flow hedges Financial assets belonging to the category in question are measured at fair value and the related changes are recognised in profit or loss Derivative instruments at fair value through profit or loss are recognised as assets or liabilities depending on whether the fair value is positive or negative ; positive and negative fair values deriving from transactions with the same counterparty are offset during the collateralisation phase, where contractually provided for

¹⁹⁵ This is possible for transactions carried out on organised markets (the "regular way").

he classification as "current" or "non-current" of financial assets measured at amortised cost and financial assets measured at fair value through other comprehensive income depends on the contractual maturity of the instrument, since current assets are those whose realisation is expected within twelve months of the reporting date Financial assets measured at fair value through profit or loss are, on the other hand, classified as "current" if held for trading and are expected to be sold within twelve months of the reporting date

An expected credit loss ( CL) provision must be made for financial assets recognised at amortised cost and financial assets at fair value through OC , as follows: (i) specific provisions for doubtful debts are made for expected losses on financial assets measured at amortised cost; (ii) expected losses on financial assets measured at fair value through other comprehensive income are recognised in profit or loss, with a contra entry in the fair value reserve in equity he method utilised is the "General impairment model", whereby:

• f on the reporting date the credit risk of a financial instrument has not increased significantly since initial recognition, a 12-month CL is recognised (stage 1) nterest on the instrument is calculated on the gross carrying amount (amortised cost inclusive of the CL);
• f on the reporting date the credit risk of the financial instrument has increased significantly since initial recognition, a lifetime CL is recognised (stage 2) nterest on the instrument is calculated on the gross carrying amount (amortised cost inclusive of the CL);
• f a financial instrument is already impaired on initial recognition or shows objective evidence of impairment at the reporting date, lifetime expected losses are recognised nterest is recognised at amortised cost (stage 3), i e on the basis of the exposure value - determined using the effective interest rate - adjusted for expected losses

Detailed information on the inputs, assumptions and techniques for determining expected losses on financial assets is provided in Note 2.6 - Use of Estimates, to which reference is made for a full discussion

Financial assets are derecognised when there is no longer a contractual right to receive cash flows from the investment or when all the related risks and rewards and control have been substantially transferred f the substantial transfer of risks and rewards cannot be ascertained, financial assets are derecognised if no control is retained over them Finally, transferred assets are derecognised if the contractual right to receive the cash flows of the assets is retained, but at the same time a contractual obligation is assumed to pay these flows to a third party, without delay and only to the extent of those received

n addition, for impaired financial assets, derecognition may take place following the write-off of the same, following the acknowledgement that there is no reasonable expectation of recovery (e g prescription)

Financial liabilities, including loans, trade payables and other payment obligations, are measured at amortised cost using the effective interest method f there is a change in the expected cash flows and they can be reliably estimated, the value of borrowings is recalculated to reflect the change on the basis of the present value of estimated future cash flows and the internal rate of return initially applied Financial liabilities are classified as current liabilities, unless there is an unconditional right to defer settlement of the liability for at least twelve months after the end of the reporting period

When required by the applicable FR (e g in the case of derivative liabilities), or when the irrevocable fair value option is exercised, financial liabilities are recognised at fair value through profit or loss n this case, changes in fair value attributable to changes in own credit risk are recognised directly in equity, unless this treatment creates or enhances an accounting asymmetry, whereby the residual amount of the changes in the fair value of liabilities is recognised through profit or loss

Financial liabilities are derecognised when they are extinguished or when the obligation specified in the contract expires, is cancelled or discharged

For hedge accounting transactions, the oste taliane Group has elected to use the option made available by FR 9 and has retained the accounting treatments provided for by A 39 n accordance with this standard, derivatives are initially recognised at fair value on the date the derivative contract is executed and if they do not qualify for hedge accounting treatment, gains and losses arising from changes in fair value are accounted for in profit or loss for the period

f, on the other hand, derivative financial instruments qualify for hedge accounting, gains and losses arising from changes in fair value after initial recognition are accounted for in accordance with A 39 – Financial Instruments: Recognition and Measurement, as described below

he relationship between each hedging instrument and the hedged item is documented, as well as the risk management objective, the strategy for undertaking the hedge transaction and the methods used to assess effectiveness Assessment of whether the hedging derivative is effective takes place both at designation of each derivative instrument as hedging instrument, and during its life

• Fair value hedges195F 196

When the hedge is related to recognised assets or liabilities, or an unrecognised firm commitment, the changes in fair value of both the hedging instrument and the hedged item are recognised in profit or loss When the hedging transaction is not fully effective, resulting in differences between the above changes, the ineffective portion represents a loss or gain recognised separately in profit or loss for the period

Macro hedges are deemed highly effective if, at their inception and throughout the term of the hedge, changes in the fair value of the hedged cash amount are offset by changes in the fair value of the hedges, and if the effective results fall within the interval required by the reference standard

• Cash flow hedges196F 197

he effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges after initial recognition is recognised in a specific equity reserve, with movements in the reserve accounted for in "Other comprehensive income" (the "Cash flow hedge reserve") A hedging transaction is generally considered highly effective if, both at inception of the hedge and on an ongoing basis, changes in the expected future cash flows of the hedged item are substantially offset by changes in the fair value of the hedging instrument f the hedging transaction is not fully effective, the gain or loss arising from a change in fair value relating to the ineffective portion is recognised in profit or loss for the period

Amounts accumulated in equity are recycled to profit or loss in the period in which the hedged item affects profit or loss n particular, in the case of hedges associated with a highly probable forecast transaction (such as the purchase of fixed income debt securities), the reserve is reclassified to profit or loss in the period or in the periods in which the asset or liability, subsequently accounted for and connected to the aforementioned transaction, will affect profit or loss (for example, an adjustment to the return on the security)

f, during the life of the derivative, the forecast hedged transaction is no longer expected to occur, the related gains and losses accumulated in the cash flow hedge reserve are immediately reclassified to profit or loss for the period When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, the related gains and losses accumulated in the cash flow hedge reserve at that time remain in equity and are recognised in profit or loss at the same time as the original underlying

¹⁹⁶ A hedge of the exposure to a change in fair value of a recognised asset or liability or of an unrecognised firm commitment attributable to a particular risk, and that could have an impact on profit or loss.

¹⁹⁷ A hedge of the exposure to the variability of cash flows attributable to a particular risk associated with an asset or liability or with a highly probable forecast transaction, and that could have an impact on profit or loss.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

mbedded derivatives

An embedded derivative is a derivative included in a combined contract or hybrid instrument, also containing a nonderivative contract or host contract, which originates all or part of the cash flows of the combined contract mbedded derivatives are separated from the host contract and recognised as a derivative when:

• the host contract is not a financial instrument measured at fair value through profit or loss;
• the economic risks and characteristics of the embedded derivative are not closely related to those of the host contract;
• a separate contract with the same terms as the embedded derivative would meet the definition of a derivative

Within the Group, contracts that may contain embedded derivatives are:

• contracts for the purchase of non-financial items entered into by ostepay pA with clauses or options that influence the contract price, for which, however, embedded derivatives are not separable from the host contract;
• convertible bonds held by oste taliane pA and ostepay pA, for which the embedded derivative component is not separated as the host contract is a financial instrument measured at fair value through profit or loss

Repurchase agreements

Any securities received as part of a transaction entailing subsequent re-sale and the delivery of securities as part of a transaction entailing their subsequent repurchase are not either recognised or derecognised in these financial statements Consequently, in the case of securities purchased under a resale agreement, the amount paid is recognised as an amount due from customers or banks under Financial assets measured at amortised cost; in the case of securities sold under a repurchase agreement, the liability is recognised as an amount due to banks or customers under Financial liabilities measured at amortised cost he transactions described are subject to offsetting if, and only if, they are carried out with the same counterparty, have the same maturity and offsetting is provided for in the contract

ax credits Law no 77/2020

n order to identify the correct accounting treatment of receivables acquired in relation to Relaunch Decree no 34/2020 (later converted into Law no 77 of 17 July 2020), since it is not possible to identify the framework directly applicable to this case, in compliance with the provisions of A 8, an accounting policy was defined suitable for providing relevant and reliable information aimed at ensuring a faithful representation of the financial position, income and cash flows and which reflects the economic substance and not merely the form of the transaction On the basis of the analyses carried out and the documents published by the main talian supervisory bodies (Joint Document of the Bank of taly, VA and CO OB197F ¹⁹⁸), although the definition of financial assets in A 32 is not directly applicable to this case, an accounting model was developed based on FR 9 given that:

• at inception, an asset as defined by the Conceptual Framework arises in the transferee's financial statements;
• they may be used to offset a payable that is usually settled in cash (tax payables), and exchanged for other financial assets on terms that may be potentially favourable to the entity;
• a business model can be identified (Hold to Collect, Hold to Collect and ell or other business models)

¹⁹⁸ On 5 January 2021, the Bank of Italy, Consob and IVASS published Document no. 9 of the Coordination Round-Table Group on the Application of IAS/IFRS "Accounting Treatment of Tax Credits Associated with the "Heal Italy" and "Relaunch" Law Decrees Acquired as a Result of Disposal by Direct Beneficiaries or Previous Purchasers".

At the date of purchase, these receivables are recognised at their fair value (coinciding with the price paid) and subsequently measured at amortised cost, as they were acquired to be used to offset tax or social security payables by oste taliane pA, based on the provisions of the relevant regulations ("Hold to Collect" business model)

Classification of receivables and payables attributable to Banco osta and M RFC

Receivables and payables attributable to Banco osta RFC are treated as financial assets and liabilities if related to Banco osta's typical deposit-taking and lending activities, or services provided under authority from customers he related operating expenses and income, if not settled or classifiable in accordance with Bank of taly Circular 272 of 30 July 2008 – he Account Matrix, are accounted for in trade receivables and payables

Receivables and payables attributable to M RFC are treated as financial assets and liabilities if related to M s' typical activities, or services provided under authority from customers he related operating expenses and income, if not settled or classifiable in accordance with Bank of taly Circular 217 of 5 August 1996 – he Account Matrix, are accounted for in trade receivables and payables

Own use exemption

he standards establishing the principles for the recognition and measurement of financial instruments are also applied to derivative contracts to buy or sell non-financial items that are settled net in cash or in another financial instrument, with the exception of contracts entered into, and that continue to be held, for the purpose of the receipt or delivery of a non-financial item in accordance with the entity's expected purchase, sale or usage requirements (the own use exemption) his exemption applies to the recognition and measurement of forward electricity and natural gas contracts entered into by the subsidiary ostepay pA if the following conditions have been met:

• the contract involves the physical supply of a commodity;
• the entity has not entered into an offsetting contract;
• the transaction must be entered into in accordance with expected purchase and/or sale or usage requirements

When the above conditions are met, the contract for the purchase or sale of non-financial items is classified as a "normal contract of sale"

axes

Current income tax expense is based on the best estimate of taxable profit for the period and the related regulations, applying the rates in force Deferred tax assets and liabilities are calculated on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts, using tax rates that are expected to apply when the related deferred tax assets are realised or the deferred tax liabilities are settled Deferred tax assets and liabilities are not recognised if the temporary differences derive from investments in subsidiaries, associates and joint ventures, where the timing of the reversal of the temporary difference is controlled by the Group or it is probable that the temporary difference will not reverse in the foreseeable future n accordance with A 12, deferred tax liabilities are not recognised on goodwill deriving from a business combination

Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised

Current and deferred taxes are recognised in profit or loss, with the exception of taxes charged or credited directly to equity, in which case the tax effect is recognised directly in equity Current and deferred tax assets and liabilities are offset when they are applied by the same tax authority to the same taxpaying entity, which has the legally exercisable right to offset the amounts recognised, and the entity has the intention of exercising this right As a result, tax liabilities accruing in interim

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

periods that are shorter than the tax year are not offset against related assets deriving from withholding tax or advances paid

he Group's taxation and accounting standards take account of the effects of oste taliane pA's participation in the national tax consolidation scheme, for which the option has been exercised in accordance with the law, together with the following subsidiaries: oste Vita pA, DA xpress Courier pA, oste Air Cargo rl, ostel pA, uropa Gestioni mmobiliari pA, oste Welfare ervizi rl, oste Assicura pA, Banco ostaFondi pA GR, oste ay pA, oste nsurance Broker rl, MLK Deliveries pA, ndabox rl, exive etwork rl, L Holding pA, L AY pA, Address oftware rl, Consorzio ervizi cpa, Logos rl and lurima pA he tax consolidation arrangement is governed by Group regulations based on the principles of neutrality and equality of treatment, which are intended to ensure that the companies included in the tax consolidation are in no way penalised as a result Following adoption of the tax consolidation arrangement, the arent Company's tax expense is determined at consolidated level on the basis of the tax expense or tax losses for the period for each company included in the consolidation, taking account of any withholding tax or advances paid oste taliane pA posts its R tax expense to income taxes for the period, after adjustments to take account of the positive or negative impact of tax consolidation adjustments hould the reductions or increases in tax expense deriving from such adjustments be attributable to the companies included in the tax consolidation, oste taliane pA attributes such reductions or increases in tax expense to the companies in question he economic benefits deriving from the offset of tax losses transferred to the consolidating entity by the companies participating in the tax consolidation arrangement are recognised in full by oste taliane pA Other taxes not related to income are included in "Other operating costs"

nventories

nventories are valued at the lower of cost and net realisable value he cost of interchangeable items and goods for resale is calculated using the weighted average cost method n the case of non-interchangeable items, cost is measured on the basis of the specific cost of the item at the time of purchase he value of the inventories is adjusted, if necessary, by provisions for obsolete or slow-moving stock When the circumstances that previously led to recognition of the above provisions no longer exist, or when there is a clear indication of an increase in the net realisable value, the provisions are fully or partly reversed, so that the new carrying amount is the lower of cost and net realisable value at the end of the reporting period Assets are not, however, recognised in the statement of financial position when the Group has incurred an expense that, based on the best information available at the date of preparation of the financial statements, is deemed unlikely to generate economic benefits for the Group after the end of the reporting period

n the case of properties held for sale198F ¹⁹⁹, if present, cost is represented by the fair value of each asset at the date of acquisition, plus any directly attributable transaction costs, whilst the net realisable value is based on the estimated sale price under normal market conditions, less direct costs to sell

Long-term contract work is measured using the percentage of completion method, using cost to cost accounting19F 200

nvironmental certificates not used in the reporting period are recognised in inventories

nvironmental certificates

Within the oste taliane Group, environmental certificates refer to:

¹⁹⁹ These are properties held by EGI SpA and not accounted for in "Investment property" as they were purchased for sale or subsequently reclassified as held for sale.

²⁰⁰ This method is based on the ratio of costs incurred as of a given date divided by the estimated total project cost. The resulting percentage is then applied to estimated total revenue, obtaining the value to be attributed to the contract work completed and accrued revenue at the given date.

• mission allowances held by the company oste Air Cargo rl as an incentive to reduce greenhouse gas emissions20F ²⁰¹ with the aim of achieving an improvement in technologies used in energy production and industrial processes,
• Guarantees of origin and carbon credits held by the company ostepay pA; the former aimed at certifying the origin from renewable sources of the electricity sold; the latter aimed at fully offsetting CO² emissions from natural gas consumption

mission allowances

he uropean missions rading ystem, which works on the basis of the cap and trade principle, has capped annual greenhouse gas emissions at uropean level his corresponds to the issue, free of charge, of a set number of emission allowances by the competent national authorities During the year, depending on the effective volume of greenhouse gas emissions produced with respect to the above cap, each company has the option of selling or purchasing emission allowances on the market

he issue, free of charge, of emission allowances involves a commitment to produce, in the relevant year, a quantity of greenhouse gas emissions in proportion to the emission allowances received: this commitment, commensurate with the market value of the emission allowances at the time of allocation, is disclosed in the notes to the financial statements At the end of the year, the commitment is reduced or derecognised in proportion to the greenhouse gas emissions effectively produced and any residual value is reported in the section, "Additional information", in the Annual Report

Guarantees of origin and carbon credits

Guarantees of Origin are certifications attesting to the renewable origin of the sources used by GO (Guarantee of Origin lants) classified plants For each MWh of renewable electricity fed into the grid by GO-qualified plants, the G (Gestore ervizi nergetici) issues a GO certificate to the producer, in accordance with U Directive 2018/2001 As of 1 January 2013, electricity sales companies are obliged to procure a quantity of GO certificates equal to the electricity sold as renewable o do this, each company is required, by 31 March of the year following the year in which electricity was supplied to end customers, to cancel a quantity of GOs equal to the electricity sold as renewable

Carbon credits, on the other hand, represent a negotiable security that allows a company or organisation to offset the carbon dioxide (CO2) emitted in the course of its activities (in the case of ostepay pA, the CO2 emissions of the gas marketed to end customers), by adhering to environmental sustainability projects aimed at pursuing a path of ecological transition and decarbonisation

CO² offsetting takes place through the acquisition of carbon credits for a value equivalent to the CO² emissions resulting from the gas consumption of the Company's end customers ach carbon credit represents the offsetting of one tonne of CO²

he accounting treatment of emission allowances, guarantees of origin and carbon credits to the extent that they are similar, in the absence of specific guidelines in the A / FR framework, is carried out in accordance with the provisions of the O C 8 "Greenhouse Gas Emission Allowances", as well as with the reference best practice for the main A adopters he purchase and sales of environmental certificates are accounted for in profit or loss in the year in which the transaction occurs At the end of the year, any surplus deriving from purchases is accounted for in closing inventory at the lower of cost and net realisable value201F ²⁰² n the event of a deficit, the resulting charge and related liability are accounted for at the end of the year at market value

Business Combinations

Business combinations are recognised using the acquisition method he consideration transferred in a business combination is equal to the sum of the fair values, at the acquisition date, of the assets transferred, the liabilities incurred,

²⁰¹ Introduced into the Italian and European regulatory system by the Kyoto Protocol.

²⁰² Any surplus emission allowances allocated free of charge are not accounted for in closing inventory.

and any interest issued by the acquirer Costs directly attributable to the transaction are recognised in the tatement of profit or loss

he amount transferred is allocated by recognising the identifiable assets, liabilities and contingent liabilities of the acquiree at the related fair values at the acquisition date

Any positive difference between the carrying amount of the asset and its recoverable value is recognised as goodwill and recorded under intangible assets:

• the sum of the consideration transferred, measured at fair value at the acquisition date, the amount of any noncontrolling interest, and, in the case of business combinations achieved in stages, the acquisition-date fair value of the acquirer's previously held equity interest in the acquiree; and
• the net value of the amounts, at the acquisition date, of the assets acquired and liabilities assumed that are identifiable in the acquiree measured at fair value

n the event of a negative difference, this surplus represents the profit from a purchase on favourable terms and is recognised in the statement of profit or loss

f at the time of preparing the financial statements the fair value of the assets, liabilities and contingent liabilities arising from the transaction can only be determined provisionally, the business combination is recognised using these provisional values Any adjustments resulting from the completion of the valuation process are recognised retrospectively within twelve months of the acquisition date

n the case of a business combination achieved in stages, the interests previously held in the acquiree are remeasured at fair value at the new acquisition date and any difference (positive or negative) is recognised in the statement of profit or loss or in the statement of comprehensive income if appropriate

Cash and deposits attributable to Banco osta

Cash and securities held at post offices, and bank deposits attributable to the operations of Banco osta RFC, are accounted for separately from cash and cash equivalents as they derive from deposits subject to investment restrictions, or from advances from the talian reasury to ensure that post offices can operate his cash may only be used in settlement of these obligations

Cash and cash equivalents

Cash and cash equivalents refer to cash in hand, deposits held at call with banks, amounts that at 31 December 2023 the arent Company has temporarily deposited with the M F and other highly liquid short-term investments with original maturities of ninety days or less Current account overdrafts are accounted for in current liabilities

on-current assets (or disposal groups) classified as held for sale and discontinued operations

on-current assets, disposal groups and discontinued operations are measured at the lower of their carrying amount and fair value, less costs to sell

When it is highly probable that the carrying amount of a non-current asset, or a disposal group, will be recovered, in its present condition, principally through a sale transaction or other form of disposal, rather than through continuing use, and the transaction is likely to take place in the short term, the asset or disposal group is classified as held for sale or as a discontinuing operation in the statement of financial position he transaction is deemed to be highly probable, when the arent Company's Board of Directors, or, when so authorised, the board of directors of a subsidiary, has committed to a plan to sell the asset (or disposal group), and an active programme to locate a buyer and complete the plan has been initiated ale transactions include exchanges of non-current assets for other non-current assets when the exchange has commercial substance

quity

hare capital

hare capital is represented by oste taliane pA's subscribed and paid-up capital ncremental costs directly attributable to the issue of new shares are recognised as a reduction of the share capital, net of any deferred tax effect

reasury shares

reasury shares are recognised at cost and deducted from equity he effects of any subsequent sales are recognised in equity

Hybrid bonds

erpetual subordinated hybrid bonds are classified as an equity instrument in the financial statements, in view of the fact that the issuing Company has the unconditional right to defer repayment of the principal and payment of the coupons until the date of its winding-up or liquidation herefore, the amount received from the subscribers of these instruments, net of the related issue costs, is recognised as an increase in Group shareholders' equity; conversely, repayments of principal and payments of coupons due (at the time the related contractual obligation arises) are recognised as a decrease in equity

Reserves

Reserves include capital and revenue reserves hey include, among others, the Banco osta ring-fenced capital reserve, representing the dedicated assets attributed to Bancoposta RFC, legally autonomous, the arent Company's legal reserve, the fair value reserve, relating to items recognised at fair value through equity, and the cash flow hedge reserve, reflecting the effective portion of hedging instruments outstanding at the end of the reporting period and the translation reserve which includes the exchange differences from the translation, in the presentation currency, of the financial statements of the consolidated companies that operate with a non- uro functional currency

Retained earnings

his relates to the portion of profit for the period and for previous periods which has not been distributed or taken to reserves or used to cover losses and actuarial gains and losses deriving from the calculation of the liability for employee termination benefits, and transfers from other equity reserves, when they have been released from the restrictions to which they were subjected n the consolidated financial statements, the item also includes any effects arising from transactions with minority shareholders

nsurance contracts

he entry into force of the new accounting standard on insurance contracts has led to significant changes in the way insurance assets are determined and valued For details on the new provisions of FR 17 and how nsurance Assets and Liabilities are determined, see Note 2.4 - Changes to accounting policies

rovisions for risks and charges

rovisions for risks and charges are recorded to cover losses that are either probable or certain to be incurred, for which, however, there is an uncertainty as to the amount or as to the date on which they will occur rovisions for risks and charges are made when the Group has a present (legal or constructive) obligation as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation rovisions are measured on the basis of management's best estimate of the use of resources required to settle the obligation he value of the liability is discounted, where the time effect of money is relevant, at a rate that reflects current market values and takes into account the risks specific to the liability rovisions are reviewed at each reporting date and are adjusted to reflect the best estimate of the expected charge to meet existing obligations at the reporting date Any effect of the passage of time and the effect of changes in interest rates are shown in the statement of profit or loss With regard to the risks for which the occurrence of a liability is only possible, specific information is provided without making any provision n those rare cases in which disclosure of some or all of the information regarding the risks in question could seriously prejudice the Group's position in a dispute or in ongoing negotiations with third parties, the Group exercises the option granted by the relevant accounting standards to provide limited disclosure

mployee benefits

he Short-term employee benefits are those that will be fully paid within twelve months of the end of the year in which the employee provided his or her services uch benefits include wages, salaries, social security contributions, holiday pay and sick pay

he undiscounted value of short-term employee benefits to be paid to employees in consideration of employment services provided over the relevant period is accrued as personnel expenses

here are two types of post-employment benefits:

• Defined benefit plans

Defined benefit plans include employee termination benefits due to employees pursuant to Article 2120 of the talian Civil Code limited to the portions of employee termination benefits accrued in the company up to 31 December 2006, for Group companies with at least 50 employees, as well as the portions of employee termination benefits accrued during the period in the case of Group companies with less than 50 employees, which continue to increase the value of the accumulated liability

Under these plans, given that the amount of the benefit to be paid is only quantifiable following the termination of employment, the related effects on profit or loss or the financial position are recognised on the basis of actuarial calculations n particular, the liability to be paid on cessation of employment is calculated using the projected unit credit method and then discounted to recognise the time value of money prior to the liability being settled he liability recognised in the financial statements is based on calculations performed by independent actuaries he calculation takes into account accrued employee termination benefits for services already rendered and is based on actuarial assumptions described in ote "2.6 - Use of Estimates - Employee termination benefits", to which reference should be made Actuarial gains and losses at the end of each reporting period, based on the difference between the carrying amount of the liability and the present value of the Group's obligations at the end of the period, due to changes in the actuarial assumptions, are recognised directly in Other comprehensive income

• Defined contribution plans

mployee termination benefits fall within the scope of defined contribution plans provided the benefits vested subsequent to 1 January 2007 and were paid into a upplementary ension Fund or a reasury Fund at Contributions to defined contribution plans are recognised in profit or loss when incurred, based on their nominal value

he Termination benefits payable to employees are recognised as a liability when the entity gives a binding commitment, also on the basis of consolidated relationships and mutual undertakings with union representatives, to terminate the employment of an employee, or group of employees, prior to the normal retirement date or, alternatively, an employee or group of employees accepts an offer of benefits in consideration of a termination of employment ermination benefits payable to employees are immediately recognised as personnel expenses

Other long-term employment benefits consist of benefits not payable within twelve months of the end of the reporting period during which the employees provided their services he net change in the value of any of the components of the liability during the reporting period is recognised in full in profit or loss

hare-based payments

hare-based payment transactions may be settled in cash, with equity instruments, or with other financial instruments Goods or services received or acquired through a share-based payment transaction are recognised at their fair value

n the case of cash-settled share-based payment transactions:

• a liability is recognised as a matching entry at cost;
• if the fair value of the goods or services received or acquired cannot be reliably determined, this value must be estimated indirectly on the basis of the fair value of the liability;
• the fair value of the liability must be remeasured at the end of each reporting period, recognising any changes in fair value in profit or loss for the period

n the case of equity-settled share-based payment transactions:

• an increase in shareholders' equity is recorded as a matching entry at cost;
• if the fair value of the goods or services received or acquired cannot be reliably determined, this value must be estimated indirectly on the basis of the fair value of the equity instruments granted at the grant date

n the case of employee benefits, the expense is recognised in personnel expenses over the period in which the employee renders the relevant service

Recognition of revenue from contracts with customers

Revenue is recognised to the extent that reflects the consideration to which the Group expects to be entitled in exchange of those goods and/or services promised to the customer (transaction price)

he main revenue types of the oste taliane Group are described below, together with an indication of the time-frame in which the performance obligations20F ²⁰³ will be met:

• Revenue from mail, parcels and other: refers to services provided to customers through the retail and business channels; revenue generated through the retail channel is recognised at a point in time given the number of transactions handled through the various sales channels (post offices, call centres and on-line) and measured on

²⁰³ The performance obligations are defined as the explicit or implicit promise to transfer a distinct good or service to the customer. Revenue is recognised when or as the entity fulfils the performance obligation, that is upon delivery of the good or service to the customer:

^- "at a point in time": in the case of obligations fulfilled at a point in time, revenue is recognised only as control over the good or service is passed to the customer. In that respect, consideration is given not only to the significant exposure to the risks and benefits related to the good or service but also physical possession, customer's acceptance, the existence of legal rights, etc.;

^- "over time": in the case of obligations fulfilled over time, the measurement and recognition of revenue reflect, virtually, the progress of the customer's satisfaction. An appropriate approach is defined to measure progress of the performance obligation (the output method).

the basis of the rates applied; revenue generated through the business channel is generally earned as a result of annual or multi-annual contracts and is recognised over time using the output method determined on the basis of shipments requested and handled hese contracts include elements of variable consideration (primarily volume discounts and penalties linked to the quality of service provided) estimated using the expected value method and recognised as a reduction from revenue

• Revenue from financial services refers to:
  • o revenue from placement and brokerage: these are recognised over time and measured on the basis of the volumes placed, quantified on the basis of commercial agreements with financial institutions n terms of payment for the collection of postal savings, the agreement entered into with Cassa Depositi e restiti envisages payment of a variable consideration on achieving certain levels of inflows, determined annually on the basis of the volume of inflows and expected redemptions; certain commercial agreements, entered into with leading financial partners for the placement of financial products, envisage the return of placement fees in the event of early termination or surrender by the customer;
  • o revenue from current account and related services: these are recognised over time, measured on the basis of the service rendered (including the related services, e g bank transfers, securities deposits, etc ) and quantified on the basis of the contract terms and conditions offered to the customer;
  • o revenue from commissions on payment of bills by payment slip: this is recognised at a point in time given the number of transactions handled by post offices and quantified on the basis of the terms and conditions in the contract of sale
• Revenue from payments and mobile refers to:
  • card payments, collections and payments relating to oste ay primarily to the cards issued by ostepay and debit cards recognised at a point in time when issued and the services linked to them recognised over time as the service is used by the customer hese services include interchange fees recognised by international circuits on payment transactions with cards recognised over time he item includes commissions for acquiring services rendered to merchants recognised over time due to the use of the service, F23 and F24 proxy acceptance services recognised over time due to the level of service rendered, and ago A collection services recognised at a point in time when the service is provided ervices provided by the L Group contribute to this item, which mainly include collection and payment services (including pay slip collection services) provided by L ay and recognised at a point in time upon collection, and revenue from the processing of telephone top-ups and network fees and services paid by points of sale to L Holding recognised over time due to the use of the service;
  • o mobile and fixed network telephony services, which include: revenue from "standard LC service offers" recognised over time based on the output method according to the traffic offer (voice, M and data); the revenue relating to the sale of fixed telephony offers recognised over time based on the output method according to the fee charged to the customer; revenue relating to the activation fees for Ms and fixed telephony offers, recognised at a point in time at the time of service delivery;
  • o services related to the supply of electricity and natural gas, the revenue from which is recognised at the time the electricity or gas is supplied to the end customer (over time) With regard to the sale of electricity, the services offered include, in addition to the commodity component, also the transport, metering and system charges components; with regard to the sale of natural gas, these services include, in addition to the commodity component, also the provision of transport services

For revenue recognition purposes, the principle provides for the identification and quantification of the variable components of the consideration (discounts, rebates, price concessions, incentives, penalties and other similar) to include them to supplement or adjust the transaction price Among the variable components of the fee, of particular importance are the penalties (to be paid to the customer in the event of failure to achieve pre-established service levels), which are recognised by the Group as a direct decrease in revenue

Revenue from activities carried out in favour of or on behalf of the state is recognised on the basis of the amount effectively accrued, with reference to the laws and agreements in force, taking account, in any event, of the provisions contained in legislation regarding the public finances he return on the current account deposits held by the M F is determined using the effective interest method and is recognised as revenue from financial services he same classification is applied to income from urozone government bonds, in which deposits paid into accounts by private customers and tax credits Law no 77/2020 are invested

he oste taliane Group disaggregates revenue from contracts with customers by type of good and/or service provided; revenue is therefore disaggregated in line with the operating segments identified within the company For quantitative details on the distinction between revenue from contracts with customers recognised at a specific time or over time, see section "4.3 Notes to the statement of profit or loss"

Government grants

Receivables for Government grants are recognised once they have been formally allocated to the Group by the public entity concerned and only if, based on the information available at the end of the year, there is reasonable assurance that the project to which the grant relates will be effectively carried out and completed in accordance with the conditions attached to the grant Grants are recognised in profit or loss under Other operating income as follows: operating grants in proportion to the costs actually incurred for the project and accounted for and approved to the public entity; grants related to property, plant and equipment are recognised in proportion to the depreciation charged on the assets acquired and used to carry out the project

Finance income and costs

Finance income and costs are recognised on an accruals basis based on the effective interest method, i e using an interest rate that discounts all cash flows relating to a given transaction in the same way

Dividends are recognised as finance income when the right to receive payment is established, which generally corresponds with approval of the distribution by the hareholders Meeting of the investee company Otherwise, dividends from subsidiaries are accounted for as "Other operating income"

ransactions in currencies other than the euro are translated to euro using the exchange rates prevailing at the date of the transaction Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at closing exchange rates of monetary assets and liabilities denominated in currencies other than the euro are recognised in profit or loss

arnings per share

n the oste taliane Group's consolidated financial statements, earnings per share is determined as follows:

Basic: basic earnings per share is calculated by dividing the Group's profit for the year by the weighted average number of oste taliane pA's ordinary shares in issue during the period

Diluted: at the date of preparation of these financial statements no financial instruments have been issued which have potentially dilutive characteristics203F 204

²⁰⁴ Diluted earnings per share are calculated by taking into account the potentially dilutive effect of all instruments which can be converted into ordinary shares issued by the Parent Company. The calculation is based on the ratio of profit attributable to the Parent Company, adjusted to take account of any costs or income deriving from the conversion, net of any tax effect, and the weighted average number of shares outstanding, assuming conversion of all convertible securities.

Related parties

Related parties within the Group refer to oste taliane pA's direct and indirect subsidiaries and associates Related parties external to the Group include the M F and its direct and indirect subsidiaries and associates he Group's key management personnel are also classified as related parties, as are funds providing post-employment benefits to the Group's employees and the related entities he state and public sector entities other than the M F are not classified as related parties Related party transactions do not include those deriving from financial assets and liabilities represented by instruments traded on organised markets

2.6 USE OF ESTIMATES

he preparation of financial information requires the use of estimates and assumptions that can have a significant effect on the final values indicated in the financial statements and in the disclosure provided he preparation of these estimates involves the use of available information and the adoption of subjective assessments, also based on historical experience, used for the formulation of reasonable assumptions for the recognition of operating events stimates and assumptions are periodically reviewed and the impact of any changes is reflected in the financial statements for the period in which the estimate is revised if the revision only influences the current period, or also in future periods if the revision influences both current and future periods Due to their nature, the estimates and assumptions used may vary from year to year and, therefore, it cannot be excluded that in subsequent years, the values recorded in these Financial tatements may also vary significantly as a result of changes in the subjective valuations used

Accounting treatments that require greater subjectivity in the preparation of estimates are described below, also taking into account the unique characteristics of the macroeconomic environment of reference recorded during the year (in line with MA requirements204F ²⁰⁵)

Revenue from contracts with customers

he main factors in the recognition of revenue from contracts with customers include elements of variable consideration, particularly penalties (other than those related to compensation for damages) lements of variable consideration are identified at the inception of the contract and estimated as of every close of the accounts for the entire contract term, to take into account new circumstances and changes in the circumstances already considered for the previous estimations lements of variable consideration include refund liabilities

n the business relating to the sale of electricity and gas, revenue includes estimates of both turnover and allocations for supplies made to customers between the date of the last billing period and the end of the reporting year Both of these estimation components are based on the application of internally developed algorithms that take into account the estimated volumes consumed by customers (given the historical billing information) As required by the relevant regulations, the allocation of revenue is subject to adjustment until the fifth subsequent year

rovisions for risks and charges

he Group makes provisions for probable liabilities deriving from disputes with staff, suppliers, and third parties and, in general, for liabilities deriving from present obligations hese provisions cover the liabilities that could result from legal

²⁰⁵ Public statement ESMA32-193237008-1793 of 25 October 2023.

action of varying nature, the impact on profit or loss of seizures incurred and not yet definitively assigned, and amounts expected to be refundable to customers where the final amount payable has yet to be determined

Determination of the provisions for risks and charges involves the use of estimates based on current knowledge of factors that may change over time, potentially resulting in outcomes that may be significantly different from those taken into account in preparing these financial statements

n order to reflect in the financial statements the risks arising from potential fraud perpetrated against oste taliane and, therefore, to determine the accounting impacts associated with the potential risk on tax credits, as described in greater detail in ote A10 - Tax credits Law no. 77/2020, without prejudice to compliance with Bank of taly/Consob/ vass Document no 9 as to all other aspects related to the accounting recognition of the tax credits in question (see the section " ax credits Law no 77/2020" of paragraph 2 5 Material information on accounting standards for further details), the decision was taken to refer to the provisions of A 37 - rovisions, Contingent Assets and Contingent Liabilities, with regard to the measurement of the risks in question he applicability of A 37, in order to reflect in the financial statements the risk of not being able to offset the tax credits on which fraud was ascertained, was considered because the possible failure to recover the carrying amount of the tax credits would not derive from a characteristic of the asset being measured or from significant increases in the credit risk after the initial recognition of the asset or, more simply, from the ascertained default of the debtor, but rather from the possibility that, for those ascertained to be cases of fraud, the liability of the assignee even if a third party in good faith or an offended party to the offence - will also be called to account for assumptions other than the possible irregular use of the tax credit or for use to a greater extent than the tax credit received205F ²⁰⁶ As a result of the in-depth analyses carried out on the tax credits acquired, also with the support of external legal, tax and accounting consultants, a specific provision was estimated, recorded consistently with the above and for clarity in the liability item " rovisions for risks and charges" t should be noted that the determination of the above-mentioned provision necessarily required the application of a significant degree of professional judgement, the main elements of uncertainty of which relate to the outcome of the proceedings under way, the identification of the receivables whose deductions have been assigned are effectively non-existent, and the outcome of the initiatives that will be activated by oste taliane to recover the amounts paid to the entities in respect of which cases of fraud have been ascertained

mpairment and stage allocation for financial instruments

Below are the inputs, assumptions and estimation techniques used to calculate the impairment of financial assets measured at amortised cost and at fair value through other comprehensive income and to determine the stage allocation of financial instruments, the latter not applicable within the oste taliane Group for trade receivables in accordance with the implified Approach

General description of the models utilised

he Group uses the general impairment model in accordance with risk ratings estimated on the basis of the type of counterparty:

• ecurities/deposits with overeign, Banking and Corporate counterparties: internal models for estimating risk parameters;
• ublic Administration and Central Counterparties: risk ratings deriving from agency ratings or average default rates for the sector

he simplified approach is applied to trade receivables, as described in greater detail later

²⁰⁶ As provided for in Article 121, paragraph 4 of Law Decree no. 34/2020, which states "...omissis...Suppliers and transferees shall only be liable for any use of the tax credit in an irregular manner or to an extent greater than the tax credit received...omissis...".

Significant increase in credit risk

Based on the impairment model adopted by the oste taliane Group to meet the requirements of the accounting standard, any significant increase in credit risk associated with the financial instruments held, other than trade receivables, is determined on the basis of a change in the relevant credit rating between the time of the initial investment and the reporting date

his change in notches is compared with a threshold that takes into account the following factors:

• the rating of the financial instrument at the time of investment;
• the rating of the financial instrument at the reporting date;
• the seniority of the position within the portfolio (vintage factor);
• an additive factor to mitigate the non-linearity of probability of default (" D") with respect to the rating classes206F ²⁰⁷;
• a judgemental factor to be used only in the presence of sudden changes in the creditworthiness not yet reflected by the rating207F 208

he ratings used in stage allocation derive from internal models in the case of banking, sovereign and corporate counterparties, and external info providers in the case of ublic Administration and Central Counterparties Based on the above information, the oste taliane Group rebuts the presumption that there have been significant increases in credit risk following initial recognition, when financial assets are more than 30 days past due

he oste taliane Group decided not to adopt the Low Credit Risk xemption and to proceed instead with stage allocation of the financial instruments concerned

Regarding trade receivables, given the adoption of the simplified approach under the new accounting standard, expected credit losses are determined throughout the lifetime of the instrument

Definition of default

he oste taliane Group defines default on the basis of ad hoc assessments that take into account:

• any payment delays;
• market information such as a default rating by the rating agencies;
• internal analyses of specific exposures

Collective and individual provisions

he collective impairment of a homogeneous group of financial assets defines the expected credit loss ( CL) of the instrument, even though it cannot be associated with a specific exposure Grouping takes place in relation to the type of counterparty on the basis of the estimated D

ndividual provisions are considered only following the review of trade receivables for amounts in excess of a given threshold and only in relation to single receivables

Forward looking information

According to the standard, the CL calculation must also factor in forward looking components based on broad consensus scenarios

²⁰⁷ The additive factor is built in view of the rating level at the reporting date, where the better the final rating the higher the threshold for the transition to Stage 2.

²⁰⁸ The judgemental factor can summarise significant aspects in determining the significant increase of credit risk, considering such elements as:

^• an actual or expected significant change of the internal/external credit rating of the financial instrument;

^• actual or expected negative changes in economic, financial or business conditions that might cause a significant change in the borrower's ability to honour its obligations, such as an actual or expected increase in interest rates or an actual or expected significant increase in the unemployment rate.

he oste taliane Group incorporates forward looking information directly in the D estimation n particular, for sovereign counterparties, for which authoritative forward-looking estimates208F ²⁰⁹ are available, these values are used to calculate D; for other counterparties, on the other hand, the internal model adopted allows the input dataset needed to calculate D to be completed from scenario values referring to some of the model variables he objective of the approach is to estimate the unknown variables by using the historical correlation of the available information209F 210

ESG disclosure

he overeign, Bank and Corporate D estimation models include variables reflecting ocial and Governance factors defined from indicators provided by authoritative sources such as the U and the World Bank he nvironmental factor is negligible for these purposes in view of the 1-year time horizon of the D itself n the context of Banco osta's RFC, this factor is monitored through scenario analyses and verification of ratings provided by external agencies

Estimation techniques used

ince events of default cannot be used, as they are not very frequent, to develop credit scoring models for overeign, Banking and Corporate counterparties, a shadow rating approach has been adopted

his method entails the use of target variables related to the level of external rating produced by the agencies; the target is identified as the default rate linked to the rating level

A key rating agency was selected to construct the target, taking into account both the large number of rated counterparties and the availability of historical data over what was deemed to be an adequate period of time

he models have been constructed by extracting and utilising the following types of data for each country in the sample:

• macroeconomic data;
• market data: domestic equity indices, global energy/non-energy indices, urostoxx and & 500;
• financial statement data

he internal model estimate used a definition of default based on a payment delay of 90 days

ECL measurement

xpected credit losses ( CL) are determined over a time horizon consistent with the stage level (12 months or lifetime) on the basis of the following factors:

• robability of Default ( D);
• Loss Given Default (LGD);
• xposure at Default ( AD);
• ime Factor ( F)

he main assumptions/choices adopted in the determination of the factors are as follows:

• D: as indicated from the start, a oint in ime ( ) and forward-looking evaluation has been adopted;
• LGD: values have been used consistent with the nternal Ratings-Based ( RB) Base Approach under the Basel guidelines (45% for senior risk assets, 75% for subordinated risk assets);
• AD: exposure calculated prospectively until maturity of the instrument, starting from the development of projected cash flows n the development account was taken of specific indexation assumptions for every asset class (fixed-rate securities, variable-rate securities, inflation-indexed securities, etc );
• F: the effective interest rate of each exposure was used as discount factor

²⁰⁹ These include prospective estimates made available by the International Monetary Fund, the UN and the World Bank.

²¹⁰ In particular, the use of such approach is limited to situations where, actually, the final data are deemed to be no longer representative of the counterparty's risk.

he assumptions adopted and set out above have led to an increase in the D of taly and other overeign counterparties in general compared to that used in the assessments in the Annual Report at 31 December 2022

Trade receivables

he Group adopts the simplified approach to test for the impairment of trade receivables, on the basis of which provisions for credit losses are determined for an amount equal to expected losses throughout the lifetime of the receivable uch approach is implemented through the following process:

• based on total revenue or the historical credit exposure, all receivables or credit exposures exceeding a certain preestablished credit threshold are assessed analytically he analytical evaluation of the exposures entails an analysis of the borrower's credit quality and solvency, as determined on the basis of internal and external supporting evidence;
• for receivables falling below the threshold set, through the preparation of a matrix with the different impairment percentages estimated on the basis of historical losses, where they exist, or alternatively on the historical pattern of collections n constructing the impairment matrix, receivables are grouped by homogeneous categories, based on their characteristics, to take into account the historical loss experience

Collateral held and other credit risk mitigation instruments on trade receivables

o mitigate the risks arising from the extension of credit terms to its customers, the Group has implemented a policy and suitable guidelines that govern the management of trade receivables, the terms and conditions of payment applicable to customers and defines the corporate process aimed at checking the customer's creditworthiness, as well as the sustainability of the business risk inherent in the contract involving extended payment terms Depending on the evaluations, the contracts entered into with customers may require a suitable guarantee Guarantees are also requested if they are required by rules and regulations and/or implementing rules of specific services

he oste taliane Group accepts mainly guarantees issued by primary banks or insurance companies Alternatively, upon request of the customer and after a risk analysis, it accepts sureties issued by other institutions or security deposits through the opening of a postal escrow account he oste taliane Group, as a rule, exempts the ublic Administration from the provision of guarantees to secure trade receivables arising from transactions with it, save for the cases when such guarantees are mandatory by law or due to implementing rules of specific services

For all the exposures evaluated individually, to calculate the provisions for doubtful debts, guarantees reduce the amount of the exposure at risk

At 31 December 2023, the Group does not hold trade receivables secured by collateral or other risk mitigation instruments for which no loss provisions have been made

mpairment tests of goodwill, cash generating units and equity investments

Goodwill and other non-current assets are tested for impairment in accordance with A 36 – Impairment of Assets mpairment testing involves the use of estimates based on factors that may change over time, potentially resulting in effects that may be significantly different from prior year estimates

n accordance with the relevant accounting standard, when it is not possible to estimate the recoverable amount of an individual asset, the Group identifies the smallest group of assets that generates cash inflows that are largely independent of those from other assets or groups of assets (Cash Generating Units - CGUs) he process of identifying such CGUs necessarily involves management's judgement as to the specific nature of the assets and business to which they belong and evidence that the cash inflows from the group of assets are closely interdependent and largely independent of those from other assets (or groups of assets) he number and scope of CGUs are systematically updated to reflect the effects of new aggregation and reorganisation operations carried out by the Group, as well as to take into account those external factors that could affect the ability of assets to generate independent cash inflows

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

For the most significant impairment tests performed at 31 December 2023, the carrying amounts tested and the main assumptions underlying the tests performed are shown below:

	Amount (€m)	Method used	Explicit forecast period	Growth rate	Discount rate
Goodwill of the Mail, arcels and Distribution CGU	213	DCF	2024-2028	2 0%	7 48% (WACC)
Goodwill of the ayments and Mobile CGU	459	DCF	2024-2028	2 0%	9 54% (WACC)
Goodwill of the nsurance ( nsurance) CGU	124	DDM	2024-2028	2 0%	9 31% (Ke)
nvestment in Anima Holding pA	219	DDM	2024-2026	2 0%	9 65% (Ke)

DCF: Discounted Cash Flow; DDM: Dividend Discount Model; WACC: Weighted Average Cost of Capital; Ke: cost of own capital

t should be noted that the discount rates at 31 December 2023 are up from those used for the previous year's estimates pecifically, the increases amounted to 129 basis points for the Mail, arcels and Distribution CGU, 90 basis points for the ayments and Mobile CGU, and 131 basis points for the investment in Anima Holding

With reference to the external quantitative indicators of impairment at Group level, it should be noted that, at 31 December 2023, market capitalisation was higher than book equity, whereas with regard to internal source elements, it should be noted that consolidated results at December 2023 were above budget forecasts for the same period

Mail, Parcels and Distribution CGU

he impairment test of the Mail, arcels and Distribution CGU was performed, consistent with the previous year, at the consolidated level, including the companies within the same operating segment; the activities performed by the different companies and the resulting cash flows are highly interdependent, as commercial and strategic management decisions are made centrally at the level of the entire segment

he value in use of the CGU was estimated on the basis of the 2024-2028 strategic plan approved by oste taliane pA's Board of Directors on 19 March 2024 he economic forecasts used in the execution of the test also include, among the various characterising elements, forecasts for the planned investments that will be focused on achieving the CGU's automation and modernisation objectives, in continuity with what was achieved in 2023 pecial importance is attached to investments classified as G, i e that comply with the reference principles of the Group's 8 ustainability illars Among the CGU's main investment projects are the olis roject "Homes of Digital Citizenship ervices", energy efficiency measures for real estate, and the automation and evolution of the sorting and delivery network from a green perspective

n determining the terminal value, calculated on the basis of the last year of explicit forecasts, income was normalised Reference was also made to the transfer prices that Banco osta RFC is expected to pay for the services provided by oste taliane's distribution network

he impairment test determined that the related carrying amounts are fair

he impairment test is based on estimates and assumptions that present elements of uncertainty, also due to the current context characterised by significant volatility of the main market factors and significant uncertainty with regard to economic expectations, as well as the continuation of negative economic results and the decline of the postal market in which the Group operates; for this reason, sensitivity analyses were carried out n particular, the impairment test showed the recoverability of the goodwill allocated to the CGU even by increasing the indicated discount rate by 100 basis points and jointly reducing the long-term growth factor by 20 basis points

ensitivity analyses performed on the impairment test lead to a substantial alignment between the recoverable amount and the net invested capital of the CGU with a discount rate of 9 11%

As in the past, in determining the value of properties used as post offices and sorting centres, oste taliane pA's universal service obligation was taken into account, as was the inseparability of the cash flows generated from the properties that provide this service, (which the arent Company is required to operate throughout the country regardless of the expected

profitability of each location); the unique nature of the operating processes involved and the substantial overlap between postal and financial activities within the same outlets, represented by post offices, were also considered On this basis, the value in use of the Land and Buildings used in operations is relatively unaffected by changes in the commercial value of the properties concerned and, in certain critical market conditions, certain properties may have values that are significantly higher than their mere market value, without this having any impact on the cash flows or profitability of the Mail, arcels and Distribution segment

he fair value of the arent Company's properties used in operations continued to be higher than their carrying amount, as confirmed by the property valuations carried out

Payments and Mobile CGU

n performing the impairment test on the goodwill arising from the acquisition of the L Group, which took place in 2022, reference was made to the CGU comprising all the companies belonging to the ayments and Mobile segment as the only cash flow generator

Following the completion of the L integration and reorganisation processes, in fact, the ayments and Mobile operating segment is based on single and integrated market and operational processes according to a unified approach Consequently, the cash flows are largely independent of those generated by the other operating segments of the oste Group, but closely interrelated within the segment herefore, L is no longer identifiable as a separate CGU (as determined for 31 December 2022)

n order to estimate the value in use of the CGU, reference was made to the 2024-2028 trategic lan approved by the oste taliane pA's Board of Directors on 19 March 2024, as well as by the Boards of Directors of the respective companies belonging to the CGU for the portion pertaining to them Based on the test results, there was no need to make impairment adjustments at 31 December 2023

ensitivity analyses show the passing of the test by a wide margin even in scenarios significantly worse than the one used for the impairment test

t should be noted that even if the impairment test were performed consistently with 31 December 2022 (CGU comprised of L Holding and L ay), there would be no need to make impairment losses to the goodwill recognised in the financial statements

Net Insurance (Insurance) CGU

Following the purchase of et nsurance by oste Vita through the corporate vehicle et Holding in 2023 and the associated urchase rice Allocation process, details of which are provided in ote 2 8 - Basis of consolidation, goodwill of €124 million emerged, equal to the remaining difference between the consideration transferred for the acquisition of et nsurance by et Holding and the fair value of the adjusted net assets acquired

n performing the impairment test relating to the et nsurance Group, reference was made to the CGU consisting of et nsurance and et nsurance Life as the cash generating unit

o estimate the value in use of the CGU, reference was made to the 2024 -2028 trategic lan Based on the test results, there was no need to make impairment adjustments at 31 December 2023

ensitivity analyses performed on the impairment test lead to a substantial alignment between the recoverable amount and the net assets of the CGU with a discount rate of 12 6%

Investment in Anima Holding SpA

With reference to the impairment test on the investment in Anima Holding pA, the future cash flows used in determining the value in use are those observable as consensus for the main balance sheet indicators (Revenue, rofit (loss) before tax and et rofit) estimated by analysts for the next three years and available periodically on the company's website At 31 December 2023, there was no need for impairment adjustments

Other equity investments in associates

With reference to the impairment tests of the equity investments in the other associates ennder, Financit, Replica im and urizon Capital Real Asset, no impairment adjustments were found to be necessary at 31 December 2023

Depreciation and amortisation of property, plant and equipment and intangible assets

he cost of fixed assets is depreciated or amortised on a straight-line basis over the estimated useful life of the asset he useful life is determined at the time of acquisition and is based on historical experience of similar investments, market conditions and expectations regarding future events that may have an impact, such as technological developments he actual useful life may, therefore, differ from the estimated useful life

he useful life of the Group's main asset classes is detailed below:

Property, plant and equipment	Years	% annual depreciation
Buildings	40-59	3%-2%
tructural improvements to own properties	18-31	6%-3%
lant	8-23	13%-4%
Light constructions	10	10%
quipment	3-10	33%-10%
Furniture and fittings	3-8	33%-13%
lectrical and electronic office equipment	3-10	33%-10%
Motor vehicles, automobiles, motorcycles	4-10	25%-10%
Leasehold improvements	estimated lease term*	-
Other assets	3-5	33%-20%

(*) Or the useful life of the improvement if shorter than the estimated lease term

Investment property	Years	% annual depreciation
roperty	39-42	3%-2%
tructural improvements to own properties	17-18	6%

n the case of assets to be handed over, located on land held under concession or sub-concession, on expiry of the concession term, or whilst awaiting confirmation of renewal, any additional depreciation of assets takes into account the probable residual duration of the right to use the assets to provide public services, to be estimated on the basis of the framework agreements entered into with the ublic Administration entity, the status of negotiations with the grantors and past experience

Lastly, with regard to intangible assets, amortisation begins when the asset is available for use and extends systematically on a straight-line basis over its estimated useful life determined in a range of between 2 and 5 years

nsurance liabilities

he main models, inputs and assumptions used to estimate insurance liabilities, i e future cash inflows and outflows related to insurance contracts, are summarised below

Input data, assumptions and estimation techniques used

For contracts measured with the VFA model, the estimate of future flows related to the Liability for remaining coverage is made considering the following inputs:

• on-financial assumptions, such as mortality, lapses, conversions, expenses, etc xpense assumptions, consistent with the principle, are parametrised taking into account only attributable costs;
• Financial assumptions, such as returns on assets backing insurance liabilities, asset allocation, etc ;
• tochastic economic scenarios210F ²¹¹ differentiated by separately managed account and by type of business

he estimate of cash flows takes into account all the commitments of the companies in respect of the contracts under assessment through the elaboration of magnitudes such as gross premiums, other inflows other than premiums consistent with the quantification of the benefits under analysis, commissions, expenses, performance settlements, any residual Mathematical rovision at the end of the projection, and other outflows other than the above consistent with the quantification of the benefits under analysis

For contracts measured with the BBA, the future fulfilment flows represent estimates of the future cash flows that will be generated by the natural fulfilment of the contracts by the companies and therefore include all possible cash flows that fall within the contract boundary

rojected cash flows include claims paid, reimbursements for early termination of contracts, acquisition commissions, other directly attributable administrative expenses, other directly attributable acquisition expenses, premiums written and recoveries

t should also be noted that, for onerous contracts measured through the AA, future fulfilment flows are calculated using the same approach as for contracts measured through the BBA

Liabilities for incurred claims include future fulfilment cash flows related to past services attributed to the contract group at the measurement date hese flows are defined as the sum of the following components:

• Cash flows of undiscounted Best stimate Liabilities (UB L21F ²¹²), which are the best estimate of cash outflows for both reported claims and late claims;
• Discount effect, calculated by discounting the cash flows referred to in the previous point using the defined discount curve;
• Adjustment for non-financial risks, estimated using the methodology defined by the Group

he process of allocating costs between "attributable" and "non-attributable" is done punctually according to the cost centres that incur them he development and related deferral of costs follow the associated cash flow projections and the same recognition metrics adopted for the C M release

o changes have been made to the insurance liability valuation process since the transition date with the exception of the financial and technical assumptions, which are updated as necessary at each valuation date Furthermore, the contracts in the portfolio do not provide for any discretionary elements on the part of the Company that could affect the expected flows

²¹¹ A stochastic mathematical model makes it possible to study the course of phenomena that follow random or probabilistic laws.

²¹² Undiscounted Best Estimate Liabilities.

Investment component

Assessments of the expected investment component to be included in the estimate of fulfilment future cash flows are made separately by product type An estimate of the flow related to the nvestment component is provided for both valuations at initial recognition of contract groups and for valuations at each reporting date

For contracts with discretionary participation features and annuities in the accumulation phase, the expected investment component is equal to the lapse value net of penalties, whereby the estimate in future fulfilment flows is obtained as the difference between the estimated payout amount and the countervalue calculated on the basis of the lapse value net of penalties For annuities that are certain to be paid out, the value of the investment component is not an estimate since it corresponds to the value of the benefits to be paid out, while for annuities that are certain to be paid out and pure risk products, there is no nvestment component

Method for determining the discount rate used

Below are details, by individual portfolio, of the discount curves used by the oste taliane Group in determining its insurance liabilities and the adjustments made to the reference Basic Risk Free Curve to take into account the counterparty's level of liquidity ( lliquidity remiums):

• in relation to the eparately managed account participating business and the Unit Linked portfolio connected to eparately managed accounts (Multi-class products), the lliquidity remium is calibrated on the basis of the composition of the reference portfolio (e g eparately managed accounts or Company) using approaches and metrics borrowed from the olvency approach;
• in relation to the non-participating Life Business and for the Unit Linked portfolio not connected to eparately managed accounts, use was made of the values of lliquidity remiums consistent with the Volatility Adjustment value provided by O A, in line with olvency his approach is replicated in et nsurance Life's pure risk business;
• in relation to the &C business relating to the companies oste Assicura and et nsurance, the Basic Risk Free curve is adopted, assuming an lliquidity remium consistent with the Volatility Adjustment value provided by O A

n operational terms, the oste taliane Group defined the curves at the date of initial recognition of the contract, in particular:

• for the Life business related to contracts issued by oste Vita, the initial recognition curve of contracts is set equal to the Based Risk Free curve with illiquidity premium related to the previous quarter;
• for the &C business relating to oste Assicura contracts, the curve at initial recognition of contracts is the Based Risk Free of the previous year (31/12/t-1);
• for the &C business, relating to contracts issued by et nsurance, and for the Life business, relating to contracts issued by et nsurance Life, the curve at initial recognition of contracts is the Based Risk Free with Volatility Adjustment relative to the previous year (31/12/t-1)21F 213

For the BBA method, in order to calculate the interest accrued on the C M at the reporting date, the oste taliane Group uses the forward curve determined with respect to the spot locked-in curve at the valuation date

For the AA model, the oste taliane Group has not made an adjustment for the effect of the time value of money and financial risk

²¹³ It is specified for the companies Net Insurance SpA and Net Insurance Life SpA, having entered the Poste Italiane Group perimeter on 1 April 2023, the date of 31 March 2023 was used as the initial recognition curve.

Method for determining the Adjustment for non-financial risk

he oste taliane Group adopts the percentile approach he amount of the adjustment for non-financial risk is determined by considering the scope of technical risks to which group companies are exposed, using assessments borrowed from the olvency framework n particular, the Adjustment for non-financial risk for contract groups belonging to the life business is estimated by taking into account the typical life business risk and underwriting risk exposures net of the loss-absorbing capacity of technical provisions (guaranteed minimum of products, where applicable) and gross of reinsurance Operational risk and counterparty default risk are also excluded from the analyses

For insurance contracts belonging to the &C business, exposures to pricing risk, reserving risk, catastrophe risk, and the risk of early exits typical of the type of business are considered n the &C business, the Adjustment for non-financial risk is also determined, unlike in the Life business, for the Liability for incurred claims and Assets from outward reinsurance

n calculating the amount of the Adjustment for non-financial risk, the separation between the insurance services component and the financing component is not applied for oste taliane Group companies

Methods for determining the CSM coverage unit

he release to the tatement of profit or loss of the C M over the life of the contracts is done through the definition of the Coverage Unit (CU) With reference to the Life business, the oste taliane Group determines the C M release by adopting a Coverage Unit on the basis of a Volume-based driver, defined separately for each measurement model adopted:

• BBA model: the CU is defined with a driver based on the sums insured, which are similar to the lump-sum death benefit for pure risk contracts, and on the mathematical provisions, for annuities (in the payout phase) not under the eparately managed accounts from Long- erm Care products;
• VFA model: the CU for D F contracts is defined using a driver based on mathematical provisions

n the context of the C M release pattern of the &C business, for contracts valued with the BBA Model, the Group has decided to use for the business characterised by constant insured capital a release driver based on earned premiums gross of commissions (also considering the effect of any premium refunds and related commission reversals); with the exception of the &C business characterised by decreasing insured capital ( alary-backed of et nsurance), the use of a method based on insured sums was defined as for the Life business

he C M release percentage is defined by relating the volume-based drivers as defined above to the amount of volumes of these drivers projected over a time period that coincides with the duration of the group of insurance contracts

For products measured with the VFA method, the Group considers an additional component (additional release) in the C M release for the period aimed at capturing the differences between the margin result obtained with real-world financial assumptions (Real World curves), compared to that obtained with risk-neutral financial assumptions (Risk eutral curves) his additional release is obtained from the difference between the period-end prospective C M before release under the Real World assumption and the period-end prospective C M before release under the Risk eutral assumption As a result of the additional release, it is possible to achieve a C M release that is more consistent with the financial performance of the underlying items of the insurance contracts and to obviate the systematic deferral of profit recognition in future years through coverage units

Deferred tax assets

he recognition of deferred tax assets is based on the expectation of taxable income in future years Assessments of expected taxable income depend on factors which may change over time, impacting on the valuation of the deferred tax assets in the statement of financial position

hare-based payments

As further described in ote 13 - Additional information - Share-based payment arrangements, the valuation of the sharebased payment arrangements in place within the oste taliane Group at the close of these financial statements was based mainly on the conclusions reached by actuaries external to the Group he plan terms and conditions link the award of the related options to the occurrence of certain events, such as the achievement of performance targets and performance hurdles and, in certain areas of operation, compliance with certain capital adequacy and liquidity requirements For these reasons, measurement of the liability, equity reserve and the corresponding economic effects involves the use of estimates based on current knowledge of factors that may change over time, potentially resulting in outcomes that may be significantly different from those taken into account in preparing these financial statements

mployee termination benefits

he measurement of mployee termination benefits is also based on calculations performed by independent actuaries he calculation takes account of termination benefits accrued for the period of service to date and is based on various demographic and economic-financial assumptions

he main actuarial assumptions applied in the calculation of employee termination benefits at 31 December 2023, also based on the experience of each Group company and the reference best practice, are as follows:

Economic and financial assumptions

	31.12.2023
Discount rate	3.08%
nflation rate	2.00%
Annual rate of increase of employee termination benefits	3.00%

Demographic assumptions

	31.12.2023
Mortality	A 2018
Disability	tables broken down by age and gender
Retirement age	Achievement of general mandatory insurance requirements
Frequency of employee termination benefits advances	pecific table with rates differentiated by Company
mployee turnover frequency	pecific table with rates differentiated by Company

Determination of the lease liability

o determine the financial lease liability, the Group has opted to use an incremental borrowing rate ( BR) determined in line with a hypothetical loan obtained in the current economic environment, and applied to contract group with similar remaining terms and to similar companies n particular, each BR takes account of the risk-free rate identified on the basis of factors such as the economic environment, currency, contract term and credit spread reflecting the companies' organisation and financial structure he BR associated with the commencement of the contract will be reviewed whenever there is a lease modification, meaning substantial and significant changes to the contract conditions over the life of the agreement (e g the lease term or the amount of future lease payments) he BR table defined for contract group with similar residual duration and for similar reference companies is periodically monitored and updated at least once during the year

With regard instead to determination of the lease term at the commencement date or of the remaining term at a later date (in the event of substantial and significant changes to contract conditions) and, in particular, for property leases, the Group uses a valuation approach based primarily on the expected duration of the obligation as per the agreement between the parties and/or in the legal framework of reference (Law 392 of 27 July 1978), and it expects an extension of the lease due to an interpretation/forecast of events, circumstances and future intentions, including of a strategic nature, of both the lessor and the lessee his has resulted in a set of rules for determining the lease term, to be applied to leased properties classified previously in three distinct clusters: properties where the lease is subject to legal restrictions and high commercial-value properties; properties for civilian use, such as the company accommodation for Group employees and executives; and other properties used in operations

he lease term for all of the other agreements was set as equal to the duration of the obligation agreed upon between the parties, in keeping with future intent in wanting and being able to complete the term and past experience

Options on minority interests213F 214

n the context of particular corporate transactions, there are call and put options that will allow oste taliane to purchase, at certain future dates, shares held by minority shareholders he exercise price of these options is generally determined on the basis of a formula that provides for the application of a multiplier to certain economic/equity targets of the company acquired For said cases in the consolidated financial statements, a financial liability has been recognised (in addition to the portion of equity attributable to non-controlling interests), to take account of the possible exercise of options, as matching entry to Group's equity, the value of which depends on estimates made internally and which could change even significantly in the current and future years ubsequent changes in the value of the financial liability will be reflected in the Group's statement of profit or loss

For details of the corporate transactions from which the need to recognise this financial liability arose, see Note B8 - Financial Liabilities

²¹⁴ An option contract that allows an entity to purchase the interests of minority shareholders of a subsidiary in exchange for cash or other financial assets gives rise to a financial liability in the consolidated financial statements for the present value of the amount payable. Any change in the financial liability from the date of recognition is accounted for with a different balancing entry depending on whether it refers to:

^• minority shareholders directly interested in the performance of the subsidiary's business with regard to the transfer of risks and benefits on the shares subject to the option. One of the indicators of this interest is the fair value measurement of the option exercise price. In addition to the presence of this indicator, the Group makes a case-by-case assessment of the facts and circumstances that characterise existing transactions. In this case, the discounted value of the option is initially deducted from the Group's equity reserves. Any subsequent changes in the valuation of the option exercise price are reflected in the statement of profit or loss;

^• minority shareholders not directly interested in the performance of the business (e.g. exercise price of the predetermined option). The exercise price of the option, duly discounted, is deducted from the corresponding amount of Capital and Reserves pertaining to non-controlling interests. Any subsequent changes in the valuation of the option exercise price follow the same logic, with no impact on the statement of profit or loss.

2.7 CLIMATE CHANGE AND MACROECONOMIC ENVIRONMENT

Climate Change nformation

Climate change and the transition to a low-carbon economy are becoming increasingly relevant to businesses, banks, governments, regulators, and investors

Although the oste taliane Group attaches particular importance to environmental protection, aware of the need to use resources responsibly in order to minimise negative environmental impacts214F ²¹⁵, taking into account the business in which the Group operates, issues related to climate change are considered, with the meaning provided by the reference accounting standards, irrelevant for consolidated financial reporting

With particular regard to the disclosures required by MA in ublic tatement 32-193237008-1793 of 25 October 2023, the following table shows a mapping of climate-related disclosures with a corresponding reference to the paragraphs of oste taliane's consolidated financial statements and separate financial statements in which the issue is addressed

Topic	Note	Description
Climate Change Estimates and judgements	ote 2 6 Use of estimates "Impairment tests of goodwill, cash generating units and equity investments" and "Impairment and stage allocation for financial instruments"	• Focus on the estimation of expected cash flows in relation to the CGUs subject to impairment. • Details of G factors considered in estimating the robability of Default ( D)
Sustainable investments	ote A1 " roperty, plant and equipment" ote A4 "Right-of-use assets"	• nvestments made in the reporting year aimed at reducing the environmental impact of the Group/Company • ncrease in Right-of-Use Assets related to the conclusion of leasing contracts for "green" vehicles
Sustainable finance	ote A6 - "Financial assets" ote 13 "Additional nformation - Assets Under Management"	• ercentage of G products in the entire investment and insurance portfolio of Banco osta Fondi pA GR and oste Vita Group
Environmental certificates	ote 2 5 "Material information on accounting standards - nvironmental Certificates" ote A7 " nventories"	• Description of the accounting treatment applied to environmental certificates • Details of closing inventories referring to emission allowances and guarantees of origin and carbon credits present at year-end
Share-based payments	ote 13 "Additional nformation - Share-based payment arrangements"	• Description of incentive plans some of which are anchored to the achievement of G objectives
Climate risk	ote 6 "Risk management"	• Description of the Group's exposure to climate change risks and actions taken to mitigate those risks

²¹⁵ For a description of the strategic guidelines set by the Group, also in line with its adherence to the Paris Agreement and the New Green Deal, please refer to the non-financial statement sections in the Report on Operations.

Macroeconomic environment

he estimates used in the preparation of the Financial tatements adequately take into account the particular macroeconomic context of reference, at 31 December 2023 heavily impacted by a number of factors such as: inflation, rising interest rates, deterioration of the economic climate, geopolitical risks and uncertainties on future developments, considering the ongoing conflicts not just in Ukraine but in the Middle ast too hese uncertainties are reflected in the indicators used as the basis for the estimates

For information on how these uncertainties have been reflected in the estimated Ds used to calculate expected losses, please refer to "Note 2.6 - Use of estimates -Impairment and stage allocation for financial instruments"; while for a full discussion of risks related to the economic environment, please refer to the specific sections of the Report on Operations

2.8 BASIS OF CONSOLIDATION

he oste taliane Group's consolidated financial statements include the financial statements of oste taliane pA and of the companies over which the arent Company directly or indirectly exercises control, as defined by FR 10, from the date on which control is obtained until the date on which control is no longer held by the Group he Group controls an entity when it simultaneously:

• has power over the investee;
• is exposed, or has rights to, variable returns from its involvement with the investee;
• has the ability to influence those returns through its power over the investee

Control is exercised both via direct or indirect ownership of voting shares, and via the exercise of dominant influence, defined as the power to govern the financial and operating policies of the entity, including indirectly based on legal agreements, obtaining the related benefits, regardless of the nature of the equity interest n determining control, potential voting rights exercisable at the end of the reporting period are taken into account

he consolidated financial statements have been specifically prepared at 31 December 2023, after appropriate adjustment, where necessary, to align accounting policies with those of the arent Company

ubsidiaries that, in terms of their size or operations, are, either individually or taken together, irrelevant to a true and fair view of the Group's results of operations and financial position are not included within the scope of consolidation

he criteria used for line-by-line consolidation are as follows:

• the assets, liabilities, costs and revenue of consolidated entities are accounted for on a line-by-line basis, separating where applicable the equity and profit/(loss) amounts attributable to non-controlling interests in consolidated equity and consolidated profit or loss;
• business combinations, in which control over an entity is acquired, are accounted for using the acquisition method he cost of a business combination is represented by the current value (fair value) at the date of acquisition of the assets sold, the liabilities assumed, the equity instruments issued and any other directly attributable accessory charges; the difference between the acquisition price and the current value of the assets and liabilities acquired, after verifying the correct measurement of the current values of the assets and liabilities acquired and the acquisition cost, if positive, is recorded under ntangible Assets under "Goodwill", or, if negative, is charged to profit or loss;
• acquisitions of non-controlling interests in entities already controlled by the Group are not accounted for as acquisitions, but as equity transactions; in the absence of a relevant accounting standard, the Group recognises any difference between the cost of acquisition and the related share of net assets of the subsidiary in equity;
• any significant gains and losses (and the related tax effects) on transactions between companies consolidated on a line-by-line basis, to the extent not yet realised with respect to third parties, are eliminated, as are intercompany payables and receivables, costs and revenue, and finance costs and income;
• gains and losses deriving from the disposal of investments in consolidated companies are recognised in profit or loss based on the difference between the sale price and the corresponding share of consolidated equity disposed of

nvestments in subsidiaries that are not significant and are not consolidated, and those in companies over which the Group exerts significant influence (assumed when the Group holds an interest of between 20% and 50%), hereinafter "associates", and joint ventures are accounted for using the equity method At the time of acquisition, the investment is accounted for using the equity method Any difference between the cost of acquisition of the investment and the net fair value of the investee's identifiable assets and liabilities is accounted for as follows:

• a) goodwill related to an associate or a joint venture is included in the carrying amount of the investment Amortisation of such goodwill is not permitted;
• b) in determining the initial value of the entity's investment, any excess of the entity's interest in the net fair value of investee's identifiable assets and liabilities over cost is recognised as income in determining the acquirer's interest in the profit (loss) for the period of the associate or joint venture in the period in which the interest is acquired

After acquisition, appropriate adjustments are made to the entity's share of the profits or losses of the associate or joint venture to account, for example, for additional depreciation or amortisation of the investee's depreciable or amortisable assets, based on the excess of their fair values over their carrying amounts at the time the investment was acquired, and of any impairment losses on goodwill or property, plant and equipment he equity method is as follows:

• the Group's share of an entity's post-acquisition profits or losses is recognised in profit or loss from the date on which significant influence or control is obtained until the date on which significant influence or control is no longer exerted by the Group; provisions are made to cover a company's losses that exceed the carrying amount of the investment, to the extent that the Group has legal or constructive obligations to cover such losses; changes in the equity of companies accounted for using the equity method not related to the profit/(loss) for the year are recognised directly in equity;
• unrealised gains and losses on transactions between the arent Company/subsidiaries and the company accounted for using the equity method are eliminated to the extent of the Group's interest in the associate; unrealised losses, unless relating to impairment, are eliminated

MAIN CHANGES TO THE SCOPE OF CONSOLIDATION

During the year, the arent Company concluded the following business combinations by virtue of which it acquired control of the entities

Net Insurance

On 28 eptember 2022, oste Vita's Board of Directors approved the promotion of a voluntary total cash takeover bid for ordinary shares and warrants of Net Insurance S.p.A. (" et nsurance"), in consultation with certain shareholders

On 20 April 2023, the squeeze-out procedure was finalised, as a result of which et Holding (the corporate vehicle directly controlled by oste Vita) holds a controlling interest of 97 8% in et nsurance (which in turn holds 100% of et nsurance Life p A ), and the current C O of et nsurance, who acted in concert with the takeover bid, holds a minority interest of around 2 2% he total outlay paid by et Holding for the acquisition of the stake amounted to approximately €180 8 million On 21 April 2023, BL Banca p A , pursuant to its commitment in the event of a successful bid, acquired a 40% stake in et Holding for a consideration of €73 1 million he net outlay for the oste Group for the acquisition of the stake amounted to €108 5 million Below are the total carrying amounts of the assets acquired and liabilities assumed at the date of acquisition of et nsurance and its subsidiary

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

(€m)	Carrying amount (A)	Fair Value Adjustments (B)	Fair Value (A+B)
Net assets acquired
ntangible assets	8 7	10 8	19 5
roperty, plant and equipment	14 9	1 4	16 3
Right-of-use asset	0 4	-	0 4
rade receivables and other assets	53 7	-	53 7
Financial assets	231 3	-	231 3
Cash and cash equivalents	13 1	-	13 1
nsurance assets	157 8	-	157 8
nsurance liabilities	(386 4)	3 4	(383 0)
mployee termination benefits	(0 4)	-	(0 4)
rade payables and other liabilities	(35 5)	(4 8)	(40 3)
Financial liabilities	(10 2)	-	(10 2)
Total net assets acquired	47.5	10.8	58.2
quity attributable to non-controlling interests			1 3
Net assets acquired by the Group			57.0
Goodwill			123.8
Total fee			180.8

oste taliane engaged an independent expert to support the urchase rice Allocation (" A") process, aimed at (i) allocating the rice Consideration to the fair value of the net assets of the acquired entity (regardless of whether or not they are already recognised in the financial statements) and (ii) deriving the goodwill value as the difference between the purchase price and the fair value of the net assets acquired (expressed net of deferred tax liabilities)

Based on the valuation activities performed to date, an adjustment to the fair value of the net assets acquired totalling €10 8 million was recognised, of which:

• €10 8 million increase in intangible assets related to brand enhancement;
• an increase in property, plant and equipment of €1 4 million relating to owned property;
• reduction of insurance liabilities by €3 4 million for cash flows related to amounts repayable by the distributing banks;
• deferred taxation effects related to the above adjustments of €4 8 million

For the other intangible assets already recognised in the opening financial statements of the acquired companies, as well as for all other assets and liabilities included in the opening statements of financial position of et nsurance, the net carrying amount already represents a proxy for fair value

he remaining difference between the consideration transferred (€180 8 million) and the fair value of the net assets acquired by the Group, adjusted following the A process, (€57 0 million) was allocated to Goodwill in the amount of €123 8 million

he results described above must be considered, at 31 December 2023, still provisional as oste taliane has made use of the option provided for in paragraphs 45 et seq of FR 3 to complete the valuation of the business combination within twelve months of the acquisition date

Below are the total economic values of the acquired company included in the consolidated statement of profit or loss from the date of first-time consolidation

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

(€m)	From 1 April to 31 December 2023
Revenue	23 7
Operating income	19 2
rofit/(loss) for the period	13 3

Sennder

On 3 April 2023, as a result of the capital increase reserved for the shareholder sennder echnologies GmbH ("sennder ech"), the oste taliane stake in the subsidiary went from 65% to 60% Moreover, on 30 May 2023, oste taliane's Board of Directors approved the renegotiation of the current partnership with sennder echnologies GmbH As part of the renegotiation, oste taliane contributed 35% of its shares in sennder talia to sennder ech, increasing its stake in the latter from 1 7% to 10 2% on a fully diluted basis t should be noted that following the completion of the transaction in June 2023, oste taliane holds a 25% stake in sennder talia, which, therefore, has lost its status as a subsidiary and assumed that of an associate with the consequent recognition of the investment under the equity method pursuant to A 28 n accordance with FR 10, at the time of the loss of control, the retained stake in sennder talia was measured at fair value he transaction resulted in the recognition of a total capital gain of about €109 million classified in revenue due to the sale of the controlling stake in the investment, with a positive impact on the oste Group's B

By virtue of the option provided for in paragraphs 45 et seq of FR 3 to complete the valuation of the business combination within twelve months from the date of the transaction, the difference between the fair value of the residual equity investment in sennder talia and the portion of its net assets, amounting to approximately €19 million, was provisionally allocated to goodwill and is included in the carrying amount of the equity investment

Sourcesense Platforms S.r.l

On 24 January 2023, ourcesense finalised the acquisition of co Mind ngegneria nformatica r l and its subsidiary HeadApp r l for a consideration, including the price adjustment under the contractual agreements, of approximately €1 million he two acquired companies were merged into the ewCo called ourcesense latforms r l with accounting and tax effects from 1 July 2023

he difference that emerged between the transaction price and the portion of the net assets acquired, amounting to approximately €1 million, was recognised as Goodwill under ntangible Assets pending completion of the valuation process of the individual components of the acquired assets

Cronos

On 3 August 2023, as part of a system-wide transaction to take over the policy portfolio of urovita p A (" urovita") following the latter's crisis, oste Vita contributed to the establishment of the corporate vehicle Cronos Vita p A ("Cronos"), invested in by, in addition to oste Vita itself, Allianz, Generali talia, ntesa anpaolo Vita and Unipol ai Assicurazioni, with the purpose of acquiring a business unit consisting essentially of the assets and liabilities relating to the urovita insurance business, following the latter's admission to compulsory liquidation proceedings

n eptember 2023, the insurance companies involved, Cronos, the banks distributing urovita products and certain system banks signed the final agreements within their respective competences to regulate their rights and obligations in relation to the transaction As part of the aforementioned transaction, on 18 eptember 2023, oste Vita participated in the first capital increase of Cronos, with a stake of approximately €1 7 million

On 17 October 2023, VA authorised Cronos to carry out insurance business (resulting in a change of company name from "Cronos Vita p A" to "Cronos Vita Assicurazioni p A ") On 27 October 2023, oste Vita participated, together with the other shareholders of Cronos, in proportion to its 22 5% stake, in the second capital increase of this company of approximately €212 5 million, of which approximately €47 8 million was attributable to oste Vita o complete the transaction, on 30 October 2023 VA authorised the sale of the business unit from urovita to Cronos, effective from 27 October 2023

he stake in Cronos was classified as an asset held for sale ( FR 5) in consideration of the intention to hold the stake for a limited period of time and the agreements made at the conclusion of the transaction regarding the stipulation of a firm purchase commitment within 12 months for the transfer of the business assets between the insurance companies involved in the transaction and Cronos Vita

t was also verified that the fair value of the investment, net of selling costs, was not lower than its carrying amount

CONCLUSION OF THE ASSESSMENT OF BUSINESS COMBINATIONS OF THE PREVIOUS YEAR

With reference to the acquisitions occurred in the course of 2022 for which oste taliane availed itself of the option set forth in paragraphs 45 et seq of FR 3 to complete the valuation of the business combination within twelve months from the date of acquisition, at 31 December 2023 the process was concluded, confirming the results already represented at 31 December 2022 A summary of them is provided below

LIS

Based on the valuation activities performed, an adjustment to the fair value of the net assets acquired totalling €136 9 million was recognised, of which:

• intangible assets in the amount of €192 4 million relating to existing contractual relationships with points of sale;
• deferred tax effects related to the higher value of intangible assets in the amount of €55 4 million

he remaining difference between the consideration transferred (€700 million) and the fair value of the adjusted net assets acquired, (€241 million) was allocated to Goodwill in the amount of €458 9 million

Plurima

Based on the valuation activities performed to date, an adjustment to the fair value of the net assets acquired totalling €22 million was recognised, of which:

• €30 5 million related to customer contracts and customer-related intangible assets
• €8 5 million related to deferred taxation effects connected to the higher value of identified assets

he remaining difference between the consideration transferred (€135 2 million) and the fair value of the portion of the adjusted net assets acquired (€34 5 million) was allocated to Goodwill in the amount of €100 7 million

Sourcesense

he difference between the consideration transferred (€30 2 million) and the fair value of the portion of the net assets acquired, (€6 2 million) was allocated to Goodwill in the amount of €23 9 million

Agile

he difference between the consideration transferred (€18 million) and the fair value of the portion of the net assets acquired (€4 million) was allocated to Goodwill in the amount of €14 million

CONVERSION OF THE FINANCIAL STATEMENTS INTO FOREIGN CURRENCIES

For the purposes of preparing the Consolidated Financial tatements, the statement of financial position and statement of profit or loss of all consolidated companies are expressed in euro, which is the functional currency used by the arent Company

he financial statements of companies that operate in a functional currency other than the euro are translated into the presentation currency using the closing rate at the reporting date for assets and liabilities, including goodwill and consolidation adjustments, and the average exchange rate for the year (if this reasonably approximates the exchange rate at the date of the respective transactions) for revenue and costs All the resulting exchange rate differences are recognised in other comprehensive income and shown separately in a specific equity reserve; this reserve is reversed proportionally to the statement of profit or loss at the time of the (total or partial) disposal of the relevant investment

he exchange rates used to convert the financial statements of consolidated companies in foreign currencies are those published by the Bank of taly and the uropean Central Bank and presented in the table below:

	2023		2022
Currency	Exact change on 31 December	Average annual exchange rate	Exact change on 31 December	Average annual exchange rate
Chinese Yuan Renminbi	7 851	7 66	7 358	7 079
U dollar	1 105	1 081	1 067	1 053
British ound terling	0 869	0 870	0 887	0 879(*)

(*) he exchange rate shown relates to ourcesense Limited and is calculated based on the period between the date of acquisition (1 October 2022) and 31 December 2022

3. MATERIAL EVENTS DURING THE YEAR

3.1 PRINCIPAL CORPORATE ACTIONS

nformation is provided below on corporate transactions that took place during the year under review and which supplement what has already been reported in the section on main changes to the scope of consolidation in ote 2 8 - Basis of consolidation

he following corporate actions also took place during 2023

• On 24 ovember 2022, binding agreements were signed for oste taliane to participate, with an investment of approximately €3 million, in a capital increase promoted by Moneyfarm in order to finance part of the purchase price of 100% of Profile Financial Solutions Ltd, a company active in the pension fund consolidation business in the UK under the rofile ensions brand Following receipt of the necessary approvals from the UK regulator (FCA)215F ²¹⁶ on 5 July 2023, the closing of the transaction was formalised at the end of July
• On 29 eptember 2022, the reverse merger of Plurima Bidco S.r.l. into lurima was approved by the shareholders' meetings of the two companies he transaction, which provided for the application of the regulatory simplifications for mergers of wholly-owned companies, became effective as of 1 January 2023
• On 29 June 2023, oste taliane notified Milkman S.p.A. ("Milkman") of its intention to exercise its call option on the shares held by the latter in MLK Deliveries S.p.A. ("MLK"), equal to approximately the remaining 30% of the share capital of MLK itself (the "Milkman Stake") Based on the criteria originally agreed upon in the contractual agreements signed in 2020, the exercise price of the option was estimated at €19 6 million Following the transfer of the Milkman take, formalised in July, oste taliane acquired full control of MLK

On 31 January 2024, through the establishment of the ewCo named "MLK Fresh S.r.l." ("MLK Fresh"), the partnership in the Fresh Food sector between MLK and Mazzocco S.r.l. ("Mazzocco"), an taltrans Group company operating as a national refrigerated courier, was formalised

MLK Fresh, 70% owned by MLK and 30% by Mazzocco, will be the vehicle through which the parties will offer advanced delivery services in taly dedicated to the fresh food segment in the B2C e-commerce and/or scheduled deliveries market

• On 26 April 2023, lurima p A finalised the purchase of a further 40% of the share capital of Bridge Technologies S.p.A. for a consideration of approximately €0 9 million, thus achieving 100% ownership
• n June and July, respectively, the Boards of Lis Holding and oste ay approved the project for the Partial demerger of Lis Holding in favour of PostePay, with direct assignment of the 100% stake in L ay to the M oste ay RFC n this regard, on 28 June 2023, oste taliane's Board of Directors authorised the participation of oste taliane in the extraordinary shareholders' meeting of oste ay p A to approve the demerger transaction and the amendment of the rules of the M RFC, in order to allow the allocation to the latter of investments in other payment institutions and the removal of the restriction on the allocation to the M RFC of the investment in L Holding On 31 December 2023, the demerger became effective
• On 12 October 2023, ostel p A acquired the shares in Address Software S.r.l held by third-party shareholders amounting to 49% of the company's capital Consequently, from that date and until 24 January, ostel p A held 100% of the shares in Address oftware r l n addition, on 24 January 2024 ostel sold its entire shareholding in Address oftware r l to oste taliane p A his transaction was in preparation for the start of the merger by incorporation of Address oftware r l into oste taliane p A , which will become

²¹⁶ Financial Conduct Authority

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effective in 2024

• On 28 ovember 2023, the reorganisation of the Agile Group was finalised through the reverse merger of Agile ower Holding into Agile Lab, as well as the merger of A M2, Agile ext and Agile kill into the reverse merged company he transaction was legally effective as of 1 December 2023, while the accounting and tax effects are backdated to 1 July 2023
• n June and July 2023, Volante Technologies Inc ("Volante") issued in two tranches a convertible loan totalling \$16 6 million, which was subscribed by some of the company's shareholders, including oste ay, in the amount of \$508 thousand n eptember 2023, Volante also carried out a senior debt refinancing transaction, as part of which the warrants to be assigned to subscribers of the convertible loan became exercisable oste ay exercised its warrants, converting them into newly issued ordinary shares herefore, as a result of the transactions described, oste ay's stake in Volante went from 2 9% to 2 4% (on a fully diluted basis)

As part of the agreements to restructure its debt, Volante implemented a corporate reorganisation that saw oste ay and all other shareholders become partners in the new entity Volante echnologies Holdco nc with the same stakes already held in Volante echnologies nc, a wholly-owned subsidiary of Volante echnologies Holdco, nc that changed its name to Volante echnologies LLC

• On 28 February 2024, oste ay signed an agreement to acquire 20% of & GROU etworks & ransactional ystems Group p A (" & GROU "), a leading talian company in software solutions for electronic payments he transaction, whose closing is subject to the fulfilment of conditions precedent, aims to enhance oste ay's technological expertise in order to support its expansion strategy in the digital payments market
• On 4 March 2024, oste Logistics p A (" ewCo") was established, whose share capital is wholly owned by oste taliane p A ewCo will focus on integrated logistics activities for the talian ostal Group, benefiting from the business unit of DA xpress Courier p A (" DA") concerning the integrated logistics business, through a partial demerger transaction he transaction - whose partial demerger project has already been approved in March by the Boards of Directors of the companies involved in the transaction and will also be subject to resolution by the relevant extraordinary shareholders' meetings - will be formalised by the second half of 2024

3.2 OTHER MATERIAL EVENTS

he following material events also occurred in 2023:

Russia-Ukraine Conflict

he year 2023 was characterised by the continuation of the crisis between the uropean countries Russia and Ukraine

n order to assess the impacts of the conflict for the Group, as requested by the national and international Authorities ( MA and CO OB)216F ²¹⁷, and in line with the previous financial statements, an assessment was carried out on the current and future impacts and on the sanctions imposed on Russia by state and supranational authorities, on the activities, on the financial situation and on the economic results of the Group, in consideration of the available evidence and the scenarios that can be constructed at the date of preparation of the following financial statements

he potential impacts, although at present random and uncertain also in relation to the pressure on inflation driven by sharp increases in energy and raw material prices, appear limited in relation to the fact that the Group's operations are almost entirely located within the national territory and without branches in the value chain with the countries involved

²¹⁷ Public statement ESMA32-63-1320 "European common enforcement priorities for 2022 annual financial reports" of 28 October 2022 and CONSOB Warning notice no. 3/22 of 19 May 2022

n addition, monitoring of the existing relations between the Group and the parties directly or indirectly involved was carried out, which led to the following findings:

• with reference to the arent Company, the relations with the corresponding foreign postal administrations of Russia, Belarus and Ukraine have credit and debit balances of insignificant amounts;
• with reference to oste Vita, within the Multi-asset funds, there are some indirect exposures to the countries involved in the aforementioned events that represent a non-significant portion of the relevant AV

Purchase of treasury shares

n execution of the authorisation to purchase treasury shares resolved by oste taliane's hareholders' Meeting of 8 May 2023, aimed at acquiring a supply of shares to service the Group's long-term incentive plans benefiting members of management, on 9 May 2023, the market was informed of the launch of a share buyback programme under which, between 10 May 2023 and 31 May 2023, oste taliane purchased 3,500,000 treasury shares (equal to 0 268% of the share capital), at an average price of €9 709971 per share, for a total countervalue of €33,984,897 83

Following the transaction, considering also the treasury shares in the portfolio deriving from previous buy-back transactions and the delivery to the beneficiaries of the incentive plans, oste taliane holds 10,675,798 treasury shares, equal to 0 817% of the share capital

Interim dividend

On 6 ovember 2023, oste taliane's Board of Directors, in light of the financial position and results of operations of the Company at 30 June 2023, the performance for the following months, the business outlook and the related expected economic prospects at 31 December 2023, and in line with the Group's dividend policy, resolved to bring forward, as an interim dividend, part of the ordinary dividend for 2023 o this end, the Company has prepared a Report and Financial tatements pursuant to article 2433-bis of the talian Civil Code, which show that the Company's financial position, results of operations and cash flows allow such distribution he opinion of the independent auditors was obtained on these documents

he interim dividend of €0 237 per share, gross of any legal withholding taxes, was paid with effect from 22 ovember 2023, with "ex-dividend date" of coupon no 13 coinciding with 20 ovember 2023 and record date (i e the date on which the dividend was entitled to be paid) coinciding with 21 ovember 2023

Based on the number of shares outstanding at 6 ovember 2023, which amounted to 1,295,434,202, the total amount of the interim dividend was €307 million

Ancillary Own Fund

At its meeting of 28 June 2023, oste taliane p A 's Board of Directors, having obtained the favourable opinion of the Related and Connected arties Committee issued on 27 June 2023, approved the Renewal of the Ancillary Own Fund transaction in favour of oste Vita p A for a maximum amount of €1,750 million On 5 July 2023, the relevant nformation Document was made available to the public at the Company's registered office, at Borsa taliana p A , on the Company's website, as well as on the website of the authorised storage mechanism "eMarket torage"

601

4 POSTE ITALIANE GROUP

2023 Annual Report

FINANCIAL STATEMENTS AT 31 DECEMBER 2023

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

4.1 CONSOLIDATED FINANCIAL STATEMENTS

CO OL DA D A M OF F A C AL O O

ASSETS (€m)	Notes	31 December 2023	of which related parties	31 December 2022	of which related parties
Non-current assets
roperty, plant and equipment	[A1]	2,546	-	2,404	-
nvestment property	[A2]	28	-	31	-
ntangible assets	[A3]	2,062	-	1,817	-
Right-of-use assets	[A4]	1,265	-	1,334	-
nvestments accounted for using the equity method	[A5]	294	294	267	267
Financial assets	[A6]	205,656	3,067	191,850	3,578
rade receivables	[A8]	3	-	3	-
Deferred tax assets	[C12]	2,109	-	2,601	-
Other receivables and assets	[A9]	4,084	2	4,119	2
ax credits Law no 77/2020	[A10]	6,534	-	7,458	-
Assets for outward reinsurance	[A11]	233	-	44	-
Total		224,814		211,928
Current assets
nventories	[A7]	172	-	157	-
rade receivables	[A8]	2,404	681	2,179	435
Current tax assets	[C12]	167	-	140	-
Other receivables and assets	[A9]	1,051	15	986	10
ax credits Law no 77/2020	[A10]	1,784		1,563
Financial assets	[A6]	31,503	9,000	34,290	11,986
Cash and deposits attributable to Banco osta	[A12]	4,671	-	5,848	-
Cash and cash equivalents	[A13]	4,211	874	4,983	1,991
Total		45,963		50,146
Non-current assets and disposal groups held for sale	[A14]	50	-	-	-
TOTAL ASSETS		270,827		262,074

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

LIABILITIES AND EQUITY (€m)	Notes	31 December 2023	of which related parties	31 December 2022	of which related parties
Equity
hare capital	[B2]	1,306	-	1,306	-
Reserves reasury shares	[B4]	1,083 (94)	- -	(509) (63)	- -
Retained earnings		8,027	-	7,100	-
Total equity attributable to owners of the Parent		10,322		7,834
quity attributable to non-controlling interests		117	-	44	-
Total		10,439		7,878
Non-current liabilities
Liabilities under insurance contracts	[B5]	155,338	-	141,380	-
rovisions for risks and charges	[B6]	782	50	804	55
mployee termination benefits	[B7]	637	-	705	-
Financial liabilities	[B8]	10,243	209	10,939	201
Deferred tax liabilities	[C12]	900	-	815	-
Other liabilities	[B10]	2,058	-	2,004	-
Total		169,958		156,647
Current liabilities
rovisions for risks and charges	[B6]	554	10	551	12
rade payables	[B9]	2,252	113	2,234	72
Current tax liabilities	[C12]	189	-	60	-
Other liabilities	[B10]	2,285	90	1,998	69
Financial liabilities	[B8]	85,150	5,525	92,706	4,377
Total		90,430		97,549
TOTAL LIABILITIES AND EQUITY		270,827		262,074

CO OL DA D A M OF ROF OR LO

(€m)	Notes	FY 2023	of which related parties	FY 2022	of which related parties
Revenue from Mail, arcels and other	[C1]	3,746	1,007	3,651	893
et revenue from Financial ervices	[C2]	5,229	2,305	4,938	2,048
Revenue from Financial ervices		5,795	2,317	5,125	2,052
xpenses from financial activities		(566)	(12)	(187)	(4)
et revenue from insurance services	[C3]	1,567	18	1,650	16
Revenue from insurance contracts issued		2,550	-	2,456	-
Costs arising from insurance contracts issued		(1,058)		(805)
Revenue/(costs) from outward reinsurance		(15)		(8)
ncome and (expenses) from financial operations and other income/expenses		6,458	18	(1,532)	16
et financial (costs)/revenue relating to insurance contracts issued		(6,373)	-	1,539	-
et financial revenue/(costs) related to outward reinsurance		5	-	(0)	-
Revenue from ayments and Mobile	[C4]	1,586	54	1,147	51
Net operating revenue		12,128		11,386
Cost of goods and services	[C5]	3,237	308	2,827	167
ersonnel expenses	[C6]	5,170	74	4,823	71
Depreciation, amortisation and impairments	[C7]	811	-	769	-
Capitalised costs and expenses	[C8]	(56)	-	(41)	-
Other operating costs	[C9]	275	3	508	5
of which non-recurring costs mpairment losses/(reversals of impairment		-		320
losses) on debt instruments, receivables and other assets	[C10]	71	(0)	104	1
Operating profit/(loss)		2,620		2,396
Finance costs	[C11]	119	1	126	2
Finance income	[C11]	181	15	169	1
mpairment losses/(reversals of impairment
losses) on financial assets	[A9]	(25)	-	(0)	-
rofit/(Loss) on investments accounted for using the equity method	[A5]	20	-	(6)	-
Profit/(Loss) before tax		2,727		2,433
ncome tax expense	[C12]	794	-	850	-
PROFIT FOR THE YEAR		1,933		1,583
of which attributable to owners of the arent		1,922		1,578
of which attributable to non-controlling interests		11		5
Earnings per share	[B1]	1.483		1.214
Diluted earnings per share		1.483		1.214

CO OL DA D A M OF COM R H V COM

(€m)	Notes	FY 2023	FY 2022
Profit/(Loss) for the year		1,933	1,583
Items to be reclassified in the Statement of profit or (loss) for the year
FVOC debt instruments
ncrease/(decrease) in fair value during the year ransfers to profit or loss from realisation ncrease/(decrease) for expected losses	[tab B4] [tab B4]	7,694 223 5	(27,742) (286) 4
Cash flow hedges
ncrease/(decrease) in fair value during the year	[tab B4]	80	279
ransfers to profit or loss Financial revenue or costs relating to insurance contracts issued	[tab B4]	(318) (5,532)	(409) 22,784
Financial revenue or costs related to outward reinsurance		2	(1)
axation of items recognised directly in, or transferred from, equity to be reclassified in the tatement of profit or (loss) for the year		(565)	1,542
hare of after-tax comprehensive income/(loss) of investees accounted for using equity method		0	1
Change in translation reserve		(0)	(1)
After-tax increase/(decrease) in reserves related to group of assets and	[tab B4]	-	-
liabilities held for sale(net of tax effect)
Items not to be reclassified in the Statement of profit or (loss) for the year
quity instruments measured at FVOC - increase/(decrease) in fair value during the period		(5)	(315)
Actuarial gains /(losses) on employee termination benefits	[tab B7]	(8)	127
Financial revenue or costs relating to insurance contracts issued axation of items recognised directly in, or transferred from, equity not to be		- 2	- (31)
reclassified in the tatement of profit or loss for the year hare of after-tax comprehensive income/(loss) of investees accounted for
using equity method		(0)	0
Actuarial gains /(losses) on employee termination benefits related to disposal groups and liabilities held for sale (net of tax effect)		-	-
Total other comprehensive income		1,578	(4,048)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		3,511	(2,465)
of which attributable to owners of the arent		3,500	(2,471)
of which attributable to non-controlling interests		11	6

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

CO OL DA D A M OF CHA G QU Y

								Equity
						Reserves
(€m)	Share	capital Treasury shares	Legal reserve	BancoPosta RFC reserve	Equity instruments - perpetual hybrid bonds	Fair value reserve	Cash flow hedge reserve	Reserve for insurance contracts issued and outward reinsurance	Translation reserve	Reserve for investments accounted for using equity method	Incentive plans reserve	Retained earnings	Total equity attributable to owners of the Parent	Capital and reserves attributable to non controlling interests	Total equity
Balance at 1 January 2022	1,306	(40)	299	1,210	800	1,307	(33)	-	1	3	13	7,236	12,102	8	12,110
Adjustment for first-time adoption of IFRS 17	-	-	-	-	-	7,945	-	(7,868)	-	-	-	(974)	(897)	-	(897)
Adjusted balance at 1 January 2022	1,306	(40)	299	1,210	800	9,251	(33)	(7,868)	1	3	13	6,262	11,205	8	11,213
otal comprehensive income for the year	-	-	-	-	-	(19,789)	(93)	15,744	(1)	1	-	1,668	(2,471)	6	(2,465)
Dividends paid	-	-	-	-	-	-	-	-	-	-	-	(526)	(526)	(3)	(529)
nterim dividend	-	-	-	-	-	-	-	-	-	-	-	(273)	(273)	-	(273)
urchase of treasury shares	-	(25)	-	-	-	-	-	-	-	-	-	(0)	(25)	-	(25)
ransactions with minority shareholders	-	-	-	-	-	-	-	-	-	-	-	(69)	(69)	-	(69)
ncentive plans	-	2	-	-	-	-	-	-	-	-	6	0	8	-	8
Coupons paid to holders of perpetual hybrid bonds	-	-	-	-	-	-	-	-	-	-	-	(16)	(16)	-	(16)
Other changes	-	-	-	-	-	(54)	-	-	-	2	-	54	2	-	2
Change in scope of consolidation	-	-	-	-	-	-	-	-	-	-	-	(1)	(1)	33	33
Balance at 31 December 2022	1,306	(63)	299	1,210	800	(10,592)	(128)	7,876	(0)	5	19	7,100	7,834	44	7,878
otal comprehensive income for the year	-	-	-	-	-	5,529	(169)	(3,774)	0	0	-	1,914(*)	3,500	11	3,511
Dividends paid	-	-	-	-	-	-	-	-	-	-	-	(570)	(570)	(6)	(576)
nterim dividend	-	-	-	-	-	-	-	-	-	-	-	(307)	(307)	-	(307)
urchase of treasury shares	-	(34)	-	-	-	-	-	-	-	-	-	(0)	(34)	-	(34)
ransactions with minority shareholders	-	-	-	-	-	-	-	-	-	-	-	(101)	(101)	-	(101)
ncentive plans	-	3	-	-	-	-	-	-	-	-	8	(0)	10	-	10
Coupons paid to holders of perpetual hybrid bonds	-	-	-	-		-	-	-	-	-	-	(16)	(16)	-	(16)
Other changes	-	-	-	-	-	-	-	-	-	(1)	-	-	(1)	-	(1)
Change in scope of consolidation	-	-	-	-	-	-	-	-	-	-	-	6	6	68	74
Balance at 31 December 2023	1,306	(94)	299	1,210	800	(5,063)	(297)	4,102	(0)	4	27	8,027	10,322	117	10,439

* his item includes profit for the year (Group portion) of €1,922 million and actuarial gains on provisions for employee termination benefits of €6 million, after the related current and deferred taxation

CO OL DA D A M OF CA H FLOW

(€m)	Notes	FY 2023	FY 2022
Cash and cash equivalents at beginning of year		4,983	7,958
rofit/(Loss) before tax		2,727	2,433
Depreciation, amortisation and impairments	[tab C7]	882	830
et provisions for risks and charges	[tab B6]	348	439
Use of provisions for risks and charges rovisions for employee termination benefits	[tab B6] [tab B7]	(371) 3	(354) 2
mployee termination benefits	[tab B7]	(106)	(118)
(Gains)/Losses on disposals		(112)	(1)
mpairment losses/(reversals of impairment losses) on financial assets		(25)	(1)
(Dividends)	[tab C11 1]	(4)	-
Dividends received		4	-
(Finance income realised)	[tab C11 1]	-	(1)
(Finance income in form of interest)	[tab C11 1]	(169)	(158)
nterest received nterest expense and other finance costs	[tab C11 2]	168 110	146 118
nterest paid		(45)	(78)
Losses and impairment losses/(reversals of impairment losses) on receivables	[tab C10]	64	97
ncome tax paid	[tab C12 2]	(191)	(509)
Other changes		(11)	6
Cash flow generated by operating activities before movements in	[a]	3,272	2,851
working capital
Movements in working capital:
( ncrease)/decrease in nventories	[tab A7]	(15)	2
( ncrease)/decrease in rade receivables		(696)	261
( ncrease)/decrease in Other receivables and assets Change in tax credits Law no 77/2020		399 (352)	253 11
ncrease/(decrease) in rade payables		25	91
ncrease/(decrease) in Other liabilities		279	230
Cash flow generated by /(used in) movements in working capital	[b]	(360)	848
ncrease/(Decrease) in liabilities attributable to financial activities, payments,
cards and acquiring and insurance		(9,441)	5,077
et cash generated by/(used for) financial assets and tax credits Law no
77/2020 attributable to financial activities, payments, cards and acquiring and		2,852	(17,954)
insurance
( ncrease)/decrease in cash and deposits attributable to Banco osta	[tab A12]	1,177	1,810
ncrease/(Decrease) in net liabilities under insurance contracts ( ncome)/ xpense and other non-cash components		8,033 (4,119)	3,913 3,635
Cash generated by/(used for) financial assets/liabilities attributable to
financial activities, payments, cards and acquiring and insurance	[c]	(1,498)	(3,519)
Net cash flow from /(for) operating activities	[d]=[a+b+c]	1,414	180
- of which related party transactions		4,420	1,981
Investing activities:
roperty, plant and equipment	[tab A1]	(373)	(341)
nvestment property	[tab A2]	-	-
ntangible assets nvestments	[tab A3]	(473) (50)	(469) (3)
Other financial assets		(17)	(132)
nvestments in consolidated companies net of cash acquired		(95)	(678)
Disposals:
roperty, plant and equipment, investment property, intangible assets and		13	5
assets held for sale
nvestments		-	-
Other financial assets		1	12
Net cash flow from /(for) investing activities	[e]	(994)	(1,606)
- of which related party transactions roceeds from/(Repayments of) long-term borrowings	[tab B8 4]	14 126	(18) 110
( ncrease)/decrease in loans and receivables		-	-
ncrease/(decrease) in short-term borrowings	[tab B8 4]	(380)	(812)
( urchase)/sale of treasury shares		(34)	(25)
Dividends paid	[B3]	(883)	(801)
quity instruments - perpetual hybrid bonds		(21)	(21)
Net cash flow from/(for) financing activities and shareholder	[f]	(1,192)	(1,549)
transactions
- of which related party transactions		(564)	(512)
Effect of exchange rate differences on cash and cash equivalents	[g]	-	-
Net increase/(decrease) in cash	[h]=[d+e+f+g]	(772)	(2,975)
Cash and cash equivalents at end of year Restricted cash and cash equivalents at end of year	[tab. A13]	4,211 (2,576)	4,983 (3,755)
Unrestricted cash and cash equivalents at end of year		1,635	1,228

4.2 NOTES TO THE STATEMENT OF FINANCIAL POSITION

ASSETS

A1 - PROPERTY, PLANT AND EQUIPMENT (€2,546 million)

he following table shows movements in property, plant and equipment in 2023:

tab. A1 - Movements in property, plant and equipment

Description (€m)	Land	Properties used in operations	Plant and machinery	Industrial and commercial equipment	Leasehold improvements	Other assets	Assets under construction and advances	Total
Cost	77	3,278	2,542	363	707	2,056	145	9,167
Accumulated depreciation	-	(2,107)	(1,952)	(328)	(464)	(1,877)	-	(6,728)
mpairment losses	(0)	(16)	(10)	(1)	(1)	(7)	(0)	(35)
Balance at 1 January 2023	76	1,155	580	34	241	173	145	2,404
Changes during the year
Acquisitions	-	47	66	10	48	56	144	373
Adjustments	-	-	-	-	-	-	-	-
Reclassifications	-	35	28	0	14	7	(84)	0
Disposals	(0)	(0)	(0)	(0)	(0)	(0)	(3)	(4)
Change in scope of consolidation	8	8	(0)	0	(0)	(0)	-	15
Depreciation	-	(34)	(71)	(11)	(48)	(75)	-	(239)
( mpairment losses)/Reversals	-	(0)	-	(0)	-	(3)	(0)	(3)
Total changes	8	56	23	(0)	13	(15)	58	143
Cost	85	3,371	2,630	372	765	2,098	203	9,525
Accumulated depreciation	-	(2,143)	(2,018)	(337)	(511)	(1,933)	-	(6,941)
mpairment losses	(0)	(16)	(10)	(1)	(1)	(8)	(0)	(37)
Total	85	1,211	603	34	253	157	202	2,546

At 31 December 2023, property, plant and equipment includes assets belonging to the arent Company located on land held under concession or sub-concession, which are to be handed over free of charge at the end of the concession term hese assets have a total carrying amount of €52 million

nvestments of €373 million in 2023 consists largely of:

• €47 million relating mainly to extraordinary maintenance of ost Offices and local head offices around the country (€27 million), personnel and management offices (€10 million) and mail and parcel sorting offices (€9 million);
• €66 million for plants, with the most significant expenditure made by the arent Company, of which €33 million for the construction of plants related to buildings, €14 million for the construction and extraordinary maintenance of connectivity and video-surveillance systems, €8 million for the creation and extraordinary maintenance of systems for mail sorting and parcel processing at industrial facilities and €4 million for the installation of A Ms (automated teller machines);
• €48 million invested mainly in the upgrade of plants (€20 million) and the structural part (€26 million) of leased properties;
• €56 million relating to Other assets, of which €33 million incurred by the arent Company mainly for the purchase of hardware for the renewal of technological equipment at the ost Offices and head offices and the strengthening of storage systems, €10 million for the purchase of furniture and fittings and €11 million incurred by oste ay pA mainly for the purchase of devices for the range of " osteMobile Casa" and " osteCasa Ultraveloce" (€9 million) offers and, to a residual degree, the purchase of mobile phones and mobile telephone equipment intended for rental;
• €144 million relating to Assets under construction and advances, of which €122 million incurred by the arent Company and relating, for €93 million, to extraordinary maintenance works and the infrastructural equipment of the

sales and production network and €23 million for the purchase of computer hardware and other equipment yet to enter service

Reclassifications from property, plant and equipment under construction amounted to €84 million and refer mainly to the purchase cost of assets that became available and ready for use during the year; in particular, they relate to the arent Company for the conclusion of extraordinary renovations of properties owned and improvements of leased properties (€65 million) and the activation of hardware and other technological equipment (€5 million)

Within the framework of the olis roject - Home of Digital ervices, with reference to the two lines of action envisaged in the project, the investments for the financial year 2023 totalling €92 million are shown below:

tab. A1.1 - Polis Project-Investments

Lines of Intervention	Properties used in operations	Plant and machinery	Leasehold improvements	Other assets	Assets under construction and advances	Total
One-stop shop	12	8	20	12	28	80
paces for taly	2	3	0	0	10	15
Total	14	11	20	12	38	95

n detail, the investments are related:

• for €14 million to extraordinary maintenance of ost Offices around the country;
• for €11 million to the construction of plants related to buildings;
• for €20 million to investments in the upgrade of plant and the structure of properties held under lease;
• for €12 million to the purchase of hardware for the upgrade of technological equipment of ost Offices and head offices and the purchase of furniture and fittings;
• for €38 million to investments in progress, of which €33 million for extraordinary maintenance of both owned and leased premises and €5 million for the purchase of hardware

Lastly, it should be noted that during the year under review, investments for about €31 million classified as "green", i e , aimed at reducing the impact that the oste taliane Group has on the environment in which it operates, were made by the parent company oste taliane pA and only to a residual extent by the subsidiary ostel pA he main projects include the installation of photovoltaic systems and electricity columns, as well as energy efficiency measures on real estate

A2 - INVESTMENT PROPERTY (€28 million)

nvestment property relates to service accommodation owned by oste taliane pA in accordance with Law 560 of 24 December 1993 and residential accommodation previously used by post office directors Movements in provisions for risks and charges are as follows:

tab. A2 - Movements in investment property	(€m)
Description (€m)	FY 2023
Cost	88
Accumulated depreciation	(57)
mpairment losses	(0)
Balance at 1 January	31
Changes during the year
Acquisitions	0
Reclassifications	-
Disposals	(3)
Depreciation	(1)
Total changes	(3)
Cost	81
Accumulated depreciation	(53)
mpairment losses	(0)
Balance at 31 December	28
Fair value at 31 December	66

he fair value of investment property at 31 December 2023 includes €54 million representing the sale price applicable to the arent Company's service accommodation in accordance with Law 560 of 24 December 1993, while the remaining balance reflects market price estimates calculated internally by the Company217F 218

Most of the properties included in this category are subject to lease agreements classifiable as operating leases, given that the Group retains substantially all of the risks and rewards of ownership of the properties Under the relevant agreements, tenants usually have the right to break off the lease with six-month notice Given the resulting lack of certainty, the expected revenue flows from these leases are not referred to in these notes

²¹⁸ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, service accommodation and other investment property qualify for Level 3.

A3 - INTANGIBLE ASSETS (€2,062 million)

he following table shows movements in intangible assets in 2023:

tab. A3 - Movements in intangible assets

Description (€m)	Industrial patents and intellectual property rights, concessions, licences, trademarks and similar rights	Assets under construction and advances	Goodwill	Other	Total
Cost	4,689	258	773	231	5,952
Accumulated amortisation and impairments	(4,021)	0	(102)	(12)	(4,135)
Balance at 1 January 2023	668	258	672	219	1,817
Changes during the year
Acquisitions	245	227	-	1	473
Reclassifications	209	(209)	-	0	(0)
ransfers and disposals	(0)	(5)	-	-	(5)
Change in scope of consolidation	17	2	125	-	144
Amortisation and impairments	(354)	(0)	-	(12)	(366)
Foreign exchange differences	-	-	-	-	-
Total changes	117	15	125	(11)	245
Cost	5,166	274	898	232	6,570
Accumulated amortisation and impairments	(4,381)	(1)	(102)	(24)	(4,508)
Total	785	273	796	208	2,062

nvestments in ntangible assets during 2023 amounted to €473 million, including about €54 million in software development activities and the related additional expenses recorded within the Group, primarily relating to personnel expenses (€39 million) Development costs, other than those incurred directly to produce identifiable software used, or intended for use, within the Group, are not capitalised

he increase in Industrial patents and intellectual property rights, concessions, licences, trademarks and similar rights totals €245 million, before amortisation for the period, and relates primarily to the purchase and entry into service of new software programmes and the acquisition of software licences

he acquisitions of intangible assets under construction include activities mainly regarding the development for software relating to the infrastructure platform (€105 million), for Banco osta services (€50 million), for support to the sales network (€29 million), for the postal products platform (€26 million) and for the engineering of reporting processes for other Business and personnel functions (€13 million)

he balance of intangible assets under construction includes activities of the arent Company mainly regarding the development for software relating to the infrastructure platform (€119 million), for Banco osta services (€61 million), for support to the sales network (€41 million), for the postal products platform (€32 million) and for the engineering of reporting processes for other Business and personnel functions (€17 million)

During the year, reclassifications were made from ntangible assets under construction to ndustrial patents and intellectual property rights amounting to €209 million, mainly due to the completion and start-up of new software programs and the development of existing ones, relating to the infrastructure platform (€93 million), Banco osta services (€58 million), support for the sales network (€30 million), the postal products platform (€14 million) and the engineering of reporting processes for other Business and personnel functions (€12 million)

Lastly, during the year 2023, as part of the nergy roject, the arent Company made investments in application software for about €43 million, of which €9 million has not yet entered into production, and as part of the olis roject - Home of Digital ervices, with reference to the "One-stop shop" line of intervention, it made investments of about €3 million, of which €2 million has not yet entered into production

he breakdown of the item Goodwill is as follows:

tab. A3.1 - Goodwill

Description (€m)	31.12.2023	31.12.2022	Changes
Mail, Parcels and Distribution SBU	213	213	1
lurima	101	101	(0)
oste taliane	33	33	-
ourcesense	24	24	-
oste Welfare ervizi	18	18	-
engi xpress Limited	16	16	-
Agile Lab	14	14	-
MLK Deliveries	5	5	-
exive etwork	3	3	-
ourcesense latforms	1	-	1
sennder talia	-	0	(0)
Payments and Mobile SBU	459	459	-
L	459	459	-
Insurance Services SBU	124	-	124
et nsurance	124	-	124
Total	796	672	125

he balance of €796 million refers to goodwill allocated to the Mail, arcels and Distribution BU, the ayments and mobile BU and the nsurance ervices BU he change during the year is essentially attributable to the acquisition by et Holding (a corporate vehicle directly controlled by oste Vita) of 97 8% of et nsurance (which in turn holds 100% of et nsurance Life p A ) he remaining difference between the consideration recognised and the fair value of the net assets acquired by the Group, adjusted following the urchase rice Allocation (" A") process performed in application of FR 3, was recognised as goodwill (see also ote 2 8 - Basis of consolidation)

n addition, with reference to the impairment test on goodwill and cash generating units, please refer to paragraph 2 6 - Use of estimates

A4 – RIGHT-OF-USE ASSETS (€1,265 million)

tab. A4 - Movements in right-of-use assets

Description (€m)	Properties used in operations	Company fleet	Vehicles for mixed use	Other assets	Total
Cost	1,680	373	31	54	2,138
Accumulated amortisation and impairments	(596)	(150)	(18)	(40)	(804)
Balance at 1 January 2023	1,084	224	13	14	1,334
Changes during the year
ew contract acquisitions	114	54	10	16	194
Adjustments	40	9	5	0	54
Reclassifications	-	-	-	-	-
Contract terminations	(42)	(0)	(1)	(0)	(43)
Change in scope of consolidation	(2)	(0)	0	0	(3)
Depreciation, amortisation and impairments	(166)	(88)	(8)	(10)	(272)
Total changes	(57)	(25)	6	7	(69)
Cost	1,777	385	37	50	2,249
Accumulated amortisation and impairments	(750)	(186)	(18)	(30)	(984)
Total	1,027	199	18	20	1,265

Acquisitions during the year mainly related to the arent Company (€134 million) and related to new contracts (€39 million),

renewals of contracts existing at the beginning of the year of a real estate nature (€18 million), the rental of company vehicles used for mail and parcel delivery activities (€53 million) and mixed-use vehicles (€8 million), the rental of equipment (€16 million) and to the subsidiary DA xpress Courier for the stipulation of real estate lease contracts for new operating headquarters and warehouses intended for the management of specific orders in the "integrated logistics" segment (€54 million)

he item "Adjustments" refers to contractual changes during the period in question, e g for changes in duration due to extension, revision of economic conditions, etc

he item terminations refers to the early termination of existing contracts with respect to their natural maturity

he increase in Right-of-Use Assets recognised during the year and related to lease contracts for electric, hybrid and endothermic vehicles considered to be "green" amounted to approximately €39 million, exclusively referring to the arent Company oste taliane pA

tab. A4.1 - Economic effects of lease agreements	(€m)

Description	FY 2023	FY 2022
Depreciation, impairments and adjustments of right-of-use assets	272	249
Financial charges on lease payables	28	24
Costs related to short-term leases	35	38
Costs related to lease of low-value assets	14	15
Costs related to lease of intangible assets	102	72
Total	451	397

tab. A4.2- Movements in lease liability

(€m)	FY 2023
Balance at 1 January	1,407
ew contract increases	194
ayments	(298)
Finance costs	28
Change in scope	(3)
Other changes	12
Balance at 31 December	1,341
of which current	295
of which non-current	1,045

A5 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (€294 million)

tab. A5 - Investments

Description (€m)	31.12.2023	31.12.2022	Changes
nvestments in associates	290	263	27
nvestments in subsidiaries	4	3	1
Total	294	267	27

tab. A5.1 - Investments accounted for using the equity method*

				Impairment losses
Description (€m)	Balance at 01. 01. 2023	Increases / (Decreases)	accounted for using the equity method	Dividend adjustments	Other changes	Balance at 31.12.2023
in associates
Anima Holding pA	213	(1)	15	(8)	-	219
Conio nc	1	0	(0)	-	-	1
urizon Capital Real Asset GR	4	0	0	-	-	4
Financit pA	36	(0)	3	(4)	-	35
taliaCamp rl	1	-	0	-	-	1
Replica im pA	9	-	(0)	-	-	9
Consorzio talia Cloud	0	-	-	-	-	0
sennder talia rl	-	0	1	-	21	22
Total associates	263	(1)	19	(13)	21	290
in subsidiaries
Address oftware rl	1	0	0	-	-	1
comind rl	-	1	0	-	(1)	-
Kipoint pA	2	-	1	(0)	-	3
ndabox rl	0	-	0	-	-	1
Total subsidiaries	3	1	1	(0)	(1)	4
Total	267	1	20	(13)	20	294

* he values shown in the table are rounded in millions of euros (without decimal places) t follows that the sum of the amounts may not coincide with the rounded totals

he item nvestments in associates (valued using the equity method) mainly refers to the companies Anima Holding, Financit, Replica M and sennder talia he most significant changes during the year are shown below:

• net positive adjustment of the carrying amount of the investment in Anima Holding p A; approximately €6 million, of which: an increase of approximately €15 million for the share of the economic results achieved by the investee between 30 eptember 2022 and 30 eptember 2023, the date of the last available financial statements, and a decrease of €8 million due to the effect of dividends received from the result for 2022;
• registration of the stake in sennder talia worth €21 million he company was classified as an investment in associates following the loss of control in the renegotiation of the partnership with sennder echnologies n

accordance with FR 10, the residual associated stake in sennder talia was recognised at fair value at the time of loss of control

As required by FR , equity investments were subjected to an impairment test in order to verify whether there is objective evidence that their carrying amount is not fully recoverable, and no need for value adjustments emerged

he method applied and the criteria used in conducting impairment tests of Anima Holding at 31 December 2023, are described in note 2 6 – Use of estimates, with regard to the impairment testing of goodwill, cash generating units and investments

A list of subsidiaries, joint ventures and associates accounted for using the equity method is provided in Additional information – cope of companies and key information on investments (note 13)

A6 - FINANCIAL ASSETS (€237,159 million)

tab. A6 - Financial assets

	Balance at 31.12.23			Balance at 31.12.22
Description (€m)	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
Financial assets at amortised cost	32,049	13,054	45,103	29,483	16,812	46,295	(1,192)
Financial assets at FV OC	122,369	17,226	139,594	114,031	16,204	130,235	9,359
Financial assets at FV L	47,058	1,147	48,205	42,573	929	43,501	4,704
Derivative financial instruments	4,180	77	4,257	5,764	346	6,110	(1,853)
Total	205,656	31,503	237,159	191,850	34,290	226,141	11,018
of which Financial Activities	64,414	15,642	80,056	61,914	21,327	83,241	(3,185)
of which Insurance Activities	140,588	15,556	156,145	129,390	12,765	142,155	13,990
Of which Postal and Business Activities	647	6	653	539	1	540	113
Of which Payment Services and Card Payments Activities	7	299	306	8	198	206	100

Financial assets by operating segment break down as follows:

F A C AL AC V

tab. A6.1 - Financial assets - Financial Services

	Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
Financial assets at amortised cost	30,124		12,549 42,673	27,473		16,428 43,901	(1,228)
Loans	-	1,769	1,769	-	1,358	1,358	411
Receivables	0		10,505 10,505	0		14,844 14,844	(4,339)
Deposits with the M F	0	8,932	8,932	0		11,902 11,902	(2,970)
Receivables	-	8,937	8,937	-		11,907 11,907	(2,970)
rovisions for doubtful amounts deposited with M F	0	(5)	(5)	0	(5)	(5)	0
Other financial receivables	-	1,574	1,574	-	2,942	2,942	(1,368)
Fixed income instruments	30,124		274 30,398	27,473		226 27,699	2,700
Financial assets at FVTOCI	30,083		3,017 33,100	28,638		4,552 33,190	(90)
Fixed income instruments	30,083		3,017 33,100	28,638		4,552 33,190	(90)
Financial assets at FVTPL	26	-	26	40	-	40	(14)
quity instruments	26	-	26	40	-	40	(14)
Derivative financial instruments	4,180	77	4,257	5,764	346	6,109	(1,853)
Total	64,414		15,642 80,056	61,914		21,327 83,241	(3,185)

Financial assets at amortised cost

Movements in financial assets measured at amortised cost are shown below:

tab. A6.1.1 - Movements in financial assets at amortised cost

Description (€m)	Loans and receivables	Fixed income instruments	Total
Balance at 1 January 2023	16,203	27,699	43,901
urchases		2,754	2,754
Changes in amortised cost	-	(52)	(52)
ransfers to equity reserves	-	(76)	(76)
Changes in fair value through profit or loss	0	340	341
Changes in cash flow hedges (*)	-	53	53
Changes due to impairment		(5)	(5)
et changes	(4,813)		(4,813)
ffects of sales on profit or loss	-	48	48
Accruals	5	233	238
ales, redemptions and settlement of accruals		(595)	(595)
Other changes	881	-	881
Balance at 31 December 2023	12,275	30,398	42,673

(*) he item, "Changes in cash flow hedges", relates to the purchase of forward contracts in relation to cash flow hedge transactions and reflects changes in the fair value of these forward contracts between the date of purchase of the derivative contract and the settlement date, with a matching entry in equity, in the cash flow hedge reserve

Loans and receivables

he item Loans refers to reverse repurchase agreements of €4,106 million (€4,575 million at 31 December 2022) mainly entered into with Cassa di Compensazione e Garanzia pA (hereinafter CC&G) for the temporary use of liquidity from private funding hese transactions are guaranteed by securities for a total notional amount of €3,874 million Financial assets and liabilities relating to repurchase agreements managed through the CC&G that meet the requirements of A 32

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022) At 31 December 2023, the fair value218F ²¹⁹ of said item was €1,769 million

Receivables include:

• Deposits with the MEF, for €8,937 million, including public customers' postal current account deposits, which earn a variable rate of return, calculated on a basket of government bonds219F 220 he deposit has been adjusted to reflect accumulated impairments of approximately €5 million, to reflect the risk of counterparty default (unchanged compared to 31 December 2022) he decrease in deposits of €2,970 million was mainly due to the typical operations of some customers in the ublic Administration, which generated a contraction in deposits from postal current accounts During the financial year 2023, hedging (management) derivative contracts were concluded on the 10-year index-linked remuneration component he hedging transaction (Cash flow hedge) was carried out through forward purchases of the 10-year B with settlement of the differential between the pre-set price of the security and its market value hese transactions, completed at 31 December 2023, generated positive effects of €5 million, which was recognised in profit or loss under the item ncome from investment in postal current accounts and free cash
• Other financial receivables, relating for €1,223 million to collateral deposits of which €772 million for sums paid to counterparties for repo transactions on fixed income instruments (collateral under specific Global Master Repurchase Agreements), €323 million for sums paid to CC&G (€234 million for outstanding repo transactions and €89 million as a pre-funded contribution to the Default Fund20F ²²¹), €82 million for amounts paid to counterparties for interest rate swap transactions (collateral provided for in specific Credit upport Annexes) and €46 million in sums paid as collateral in relation to clearing systems with central counterparties for over-the-counter transactions in derivatives21F 222

he year-on-year decrease in guarantee deposits is mainly due to the reduction in amounts paid to counterparties with whom repo transactions are in place as a result of the combined effect of the change in the interest rate curve, which generated an increase in the fair value of the securities as collateral, and the lower amount of transactions outstanding at the date

Fixed income instruments

hese are urozone fixed income instruments held by Banco osta RFC, consisting of government securities issued by the talian government and securities guaranteed by the talian government with a nominal value of €30,877 million heir carrying amount of €30,398 million reflects the amortised cost of unhedged fixed income bonds, totalling €19,325 million, the amortised cost of fair-value hedged fixed income bonds, totalling €13,017 million, decreased by €1,944 million to take into account the effects of the hedge (€2,714 in 2022) Fixed income instruments measured at amortised cost are adjusted to take into account the related impairments Accumulated impairments at 31 December 2023 amount to approximately

²¹⁹ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 2.

²²⁰ The variable rate in question is calculated as follows: 40% is based on the average return on six-month BOTs recognised monthly and the remaining 60% is based on the average ten-year BTP return recognised monthly.

²²¹ A guarantee fund established with payments from participants in the derivative, equity and bond markets, as a further guarantee for the transactions carried out. The fund can be used to meet the charges arising from any participant default.

²²² These are transactions carried out outside the regulated securities markets and therefore not subject to any specific regulation concerning the organisation and operation of the market itself.

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

€18 million (€13 million at 31 December 2022)

At 31 December 2023, the fair value2F ²²³ of these securities was €28,318 million (including €233 million in accrued income)

his category of financial asset includes fixed rate instruments, amounting to nominal €3,000 million, issued by Cassa Depositi e restiti pA and guaranteed by the talian government (at 31 December 2023, their carrying amount totals €2,889 million)

Financial assets at fair value through other comprehensive income

Movements in financial assets at fair value through other comprehensive income (FV OC ) are shown below:

tab. A6.1.2 - Movements in financial assets at FVTOCI

Description (€m)	Fixed income instruments	Total
Balance at 1 January 2023	33,190	33,190
urchases	3,841	3,841
ransfers to equity reserves	0	0
Changes in amortised cost	36	36
Changes in fair value through equity	1,940	1,940
Changes in fair value through profit or loss	383	383
Changes in cash flow hedges (*)	242	242
ffects of sales on profit or loss	110	110
Accruals	254	254
ales, redemptions and settlement of accruals	(6,895)	(6,895)
Balance at 31 December 2023	33,100	33,100

(*) he item, "Changes in cash flow hedges", relates to the purchase of forward contracts in relation to cash flow hedge transactions and reflects changes in the fair value of these forward contracts between the date of purchase of the derivative contract and the settlement date, with a matching entry in equity, in the cash flow hedge reserve

Fixed income instruments

hese are urozone fixed income Government securities, consisting of government bonds, especially issued by the talian government, held mainly by Banco osta RFC, with a nominal value of €34,892 million

otal fair value fluctuation for the year in question was positive for €2,323 million, with €1,940 million recognised in the relevant equity reserve in relation to the portion of the portfolio not hedged by fair value hedges, and €383 million recognised through profit or loss in relation to the hedged portion

Accumulated impairments at 31 December 2023 amount to €19 million (€16 million at 31 December 2022) he decrease in this item is mainly due to higher sales/reimbursements made during the year compared to purchases, partially offset by the positive change in fair value mentioned above

Certain securities are encumbered as they have been delivered to counterparties for use as collateral in connection with loans and hedging transactions, as described in note 13 – Additional information

²²³ In terms of the fair value hierarchy, which reflects the relevance of the sources used to measure assets, €25,231 million of the total amount qualifies for inclusion in Level 1 and €3,087 million for inclusion in Level 2.

Financial assets at fair value through profit or loss

Equity instruments

he item in question refers to the fair value of 32,059 Visa ncorporated preference shares ( eries C Convertible articipating referred tock) hese shares are convertible at the rate of 3 63423F ²²⁴ ordinary shares for each C share, minus a suitable illiquidity discount

et fair value gains in the year under review, amounting to €6 million, have been recognised in profit or loss in the items ncome and xpenses from financial activities

n addition, two separate forward sales contracts were concluded during the financial year 2023:

• the forward sale of 101,900 Visa ncorporated ordinary shares24F ²²⁵, settled on 3 April 2023, for a total consideration of €20 8 million with insignificant effects on the statement of profit or loss;
• the outstanding forward sale of 95,000 Visa ncorporated ordinary shares with a total consideration of €20 5 million and a settlement date of 3 March 202525F ²²⁶ Fair value fluctuations in the year under review, amounting to a negative €2 6 million, have been recognised in profit or loss in " xpenses from financial activities"

Derivative financial instruments

A6.1.3 - Derivative financial instruments

		Balance at 31.12.2023	Balance at 31.12.2022
Description (€m)	Nominal	Fair value	Nominal	Fair value
Cash flow hedges
Forward purchases of securities	-	-	3,433	(92)
Forward sales	-	-	1,099	346
nterest rate swaps	3,287	(513)	2,943	(531)
Fair value hedges
nterest rate swaps on securities at FV OC and AC	25,031	3,718	27,940	5,571
nterest rate swaps on repos	3,996	(83)	3,996	(155)
FV L
Forward sales	0	(3)	0	(4)
Derivative financial instruments	32,314	3,119	39,411	5,135
Of which:
Derivative assets	19,665	4,257	27,404	6,109
Derivative liabilities	12,649	(1,138)	12,007	(975)

nterest rate swap cash flow hedges relate exclusively to securities valued at FV OC

nterest rate risk cash flow hedges recorded a net negative change of €236 million during the year, of which €80 million related to the net positive change in fair value of the effective component of the hedge, reflected in the cash flow hedge reserve, and €316 million related to the net negative change in completed transactions26F ²²⁷ during the year and the ineffective component of hedging contracts

²²⁴ Until the assigned shares are fully converted into ordinary shares, the share exchange ratio may be reduced if Visa Europe Ltd. incurs liabilities that, at the reporting date, were considered as merely contingent.

²²⁵ On 20 March 2023, the 1,019 shares of Series A Preferred Stock held at 31 December 2022 were converted into ordinary shares, based on the conversion ratio of 100 ordinary shares for every share of Class A Preferred Stock. ²²⁶ The ordinary shares involved in the forward sale amount to approximately 26,207 Visa Incorporated (series C) preference shares held in portfolio at the applicable conversion rate at 31 December 2023.

²²⁷ Transactions settled include forward transactions settled, accrued differentials and the settlement of interest rate swaps linked to securities sold.

Fair value hedges in interest rate swaps are used to hedge:

• securities measured at amortised cost with a nominal value of €12,011 million and securities measured at FV OC with a nominal value of €13,020 million; in total, they underwent a net negative change of €1,853 million during the year, of which €538 million related to the net negative change in fair value of the effective component of the hedge and €1,315 million related to the net negative change in transactions completed during the year and the ineffective component of hedging contracts;
• repurchase agreements classified at amortised cost with a nominal value of €3,996 million, whose net positive change was €72 million, of which €32 million related to the net positive change in fair value of the effective hedging component and €40 million related to the net positive change in completed transactions

n the year under review, the arent Company carried out the following transactions:

• settlement of forward purchases of securities outstanding at 1 January 2023 for a nominal value of €3,433 million;
• forward purchases of securities to hedge, as of 1 January 2023, the yield of the M F Deposit and settlement for a nominal amount of €290 million;
• settlement of forward sales of securities outstanding at 1 January 2023 for a nominal value of €1,099 million;
• the stipulation of new cash flow interest rate swaps with a nominal value of €484 million and the adjustment of those outstanding on 1 January 2023 for a nominal amount of €140 million;
• the stipulation of new fair value interest rate swaps to hedge the securities portfolio with a nominal value of €3,596 million;
• early settlements of fair value hedge interest rate swaps with a nominal value of €6,505 million (of which: €980 million related to hedging transactions for which the underlying security was also sold, €3,015 million related to hedging transactions without sale of the underlying security, and €2,510 million related to hedging transactions for which new asset swaps were entered into) with the aim of consolidating a fixed yield in line with the market situation, while at the same time improving the income profile of a portion of the portfolio for subsequent years

URA C AC V

	Balance at 31.12.2023				Balance at 31.12.2022
Description (€m)	Non current	Current assets	Total	Non current assets	Current assets	Total	Changes
	assets
Financial assets at amortised cost	1,922	200	2,123	2,008	185	2,193	(70)
Receivables	0	54	55	-	34	34	21
Fixed income instruments	1,922	146	2,068	2,008	151	2,159	(91)
Financial assets at FV OC	91,643	14,209	105,852	84,850	11,651	96,501	9,351
Fixed income instruments	91,638	14,209	105,847	84,348	11,651	95,999	9,848
Other investments	-	-	-	501	0	502	(502)
quity instruments	5	-	5	-	-	-	5
Financial assets at FV L	47,023	1,147	48,170	42,532	929	43,461	4,709
Receivables	-	-	-	-	110	110	(110)
Fixed income instruments	2,211	353	2,564	1,959	326	2,285	279
Units of mutual investment funds	44,790	308	45,098	40,552	229	40,781	4,318
quity instruments	1	485	486	-	264	264	222
Other investments	21	1	22	21	0	21	1
Total	140,588	15,556		156,145 129,390		12,765 142,155	13,990

tab. A6.2 - Financial assets - Insurance Services

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Financial assets at amortised cost

Movements in financial assets measured at amortised cost are shown below:

tab. A6.2.1 - Movements in financial assets at amortised cost

Description (€m)	Loans and receivables	Fixed income instruments	Total
Balance at 1 January 2023	34	2,159	2,193
urchases		38	38
Changes in amortised cost	-	5	5
Changes in fair value through profit or loss	-	(0)	(0)
Changes in cash flow hedges	-	-	-
Changes due to impairment	-	-	-
et changes	20		20
ffects of sales on profit or loss	-	(0)	(0)
Accruals	-	18	18
ales, redemptions and settlement of accruals		(151)	(151)
Balance at 31 December 2023	55	2,068	2,123

Receivables

Financial receivables of €55 million mainly regard receivables for management commissions of oste Vita internal funds

Fixed income instruments

Fixed income instruments at amortised cost at 31 December 2023 have a carrying amount of €2,068 million hese instruments mainly relate to the free capital of oste Vita pA and oste Assicura pA At 31 December 2023, the fair value27F ²²⁸ of these securities amounted to €1,888 million

Fixed income instruments measured at amortised cost are adjusted to take into account the related impairments Accumulated impairments at 31 December 2023 amount to approximately €0 9 million (€0 9 million at 31 December 2022)

²²⁸ In terms of the fair value hierarchy, which reflects the relevance of the sources used to conduct the measurements, €1,831 million of the total amount qualifies for inclusion in Level 1, €55 million for inclusion in Level 2 and €2 million in Level 3.

Financial assets at fair value through other comprehensive income

Movements in financial assets at fair value through other comprehensive income are shown below:

tab. A6.2.2 - Movements in financial assets at FVTOCI

Description (€m)	Fixed income instruments	Other investments	Equity instruments	Total
Balance at 1 January 2023	95,999	502	0	96,501
Change in scope of consolidation	198	0	2	201
urchases	18,353	0	3	18,356
ransfers to equity reserves	2	(1)	0	1
Changes in amortised cost	630	(0)	0	630
Changes in fair value through equity	5,749	0	(0)	5,748
ffects of sales on profit or loss	(34)	0	0	(34)
Accruals	899	0	0	899
ales, redemptions and settlement of accruals	(15,948)	(501)	0	(16,449)
Balance at 31 December 2023	105,847	0	5	105,852

hese financial instruments recorded a positive change in fair value of €5,749 million, of which €5,532 million contributed to the revaluation of insurance liabilities

Fixed income instruments

At 31 December 2023, these securities relate to investments held by oste Vita pA for €105,087 million (a nominal value of €113,663 million) represented by instruments by uropean governments and leading uropean companies hese securities are used to hedge products related to eparately Managed Accounts in the amount of €101,779 million he item in question comprises bonds issued by CD pA, with a fair value of €121 million Accumulated impairment at 31 December 2023 amounts to approximately €55 million, almost entirely reflected in insurance liabilities

n addition, following the consolidation of et nsurance and et nsurance Life, fixed income instruments increased by about €246 million, mainly relating to listed instruments issued by uropean states and leading uropean companies

Other investments

At 31 December 2023, this item was nil as the private placement of the Constant Maturity wap from Cassa Depositi e restiti was fully repaid in December

Financial assets at fair value through profit or loss

Below are the movements in financial assets at fair value through profit or loss:

tab. A6.2.3 - Movements in financial assets at FVTPL

Description (€m)	Receivables	Fixed income instruments	Other investments	Units of mutual investment funds	Equity instruments	Total
Balance at 1 January 2023	110	2,285	21	40,781		264 43,461
Change in scope of consolidation	-	3	-	25	2	30
urchases		349	-	3,866	367	4,583
Changes in fair value through profit or loss	-	156	1	2,379	62	2,598
et changes	(110)					(110)
ffects of sales on profit or loss	-	5	-	75	38	118
Accruals	-	38	1	-	-	39
ales, redemptions and settlement of accruals		(273)	(0)	(2,027)	(248)	(2,548)
Balance at 31 December 2023	-	2,564	22	45,098		486 48,170

Fixed income instruments

At 31 December 2023, fixed income instruments amounting to €2,564 million were held almost exclusively by oste Vita and mainly consisted of corporate instruments issued by primary issuers and used to hedge products linked to eparately managed accounts amounting to €2,118 million

Units of mutual investment funds

At 31 December 2023, units of mutual investment funds amounting to €45,098 million include around €33,165 million to cover Class separately managed account products and €11,908 million to cover Class policies he remainder relates to investment of oste Vita's free capital (see note 13 – Additional information - Unconsolidated structured entities) et investment in the funds during the period in question amounts to €1,839 million and the fair value has increased by approximately €2,379 million, an effect that almost contributed entirely to the revaluation of insurance liabilities At 31 December 2023, the investments in UC (including multi-asset funds) amounted to €40,810, units in mutual real estate funds totalled €2,251 million, while mutual funds that primarily invest in bonds came to €2,017 million

n addition, following the consolidation of et nsurance and et nsurance Life, the item increased by approximately €21 million, mainly related to units in private debt mutual funds

Of the total amount of mutual funds in which oste Vita pA invests, an amount of around €7 billion refers to funds whose investment policies consider environmental, social and governance factors ( G factors)

Equity instruments

quity instruments amounted to €486 million, and are held primarily by the company oste Vita and pledged primarily to cover Class products linked to separately managed accounts and Class policies he change over the period reflects the combined effect of net investments of approximately €120 million and the registration of income of €100 million

Other investments

Other investments of €22 million relate to a Constant Maturity wap placed by Cassa Depositi e restiti and held by oste Vita (a nominal value of €22 million) and covering products linked to separately managed accounts

Derivative financial instruments

At 31 December 2023, there were no derivative transactions

O AL A D BU AC V

tab. A6.3 - Financial assets - Postal and Business Services

	Balance at 31.12.23			Balance at 31.12.22
Description (€m)	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
Financial assets at amortised cost	2	6	8	2	1	3	6
Loans	-	1	1	-	(0)	(0)	1
Receivables	2	1	3	2	1	3	0
Due from the purchasers of service accommodation	2		2	2	1	3	(1)
Due from Others	-	20	20	-	20	20	0
rovisions for doubtful financial debts	(0)	(20)	(20)	(0)	(20)	(20)	(0)
Financial assets at FV L	9	-	9	(0)	-	(0)	9
Bond	9	-	9	(0)	-	(0)	9
Financial assets at FV OC	636	0	636	536	0	536	100
Fixed income instruments	99	0	99	91	0	91	8
quity instruments	537	-	537	445	-	445	92
Derivative financial instruments	0	0	0	0	0	0	(0)
Total	647	6	653	539	1	540	113

Financial assets at amortised cost

Amounts due from others, with a nominal value of €20 million, regard the remaining amount due from nvitalia p A as a result of the sale of Banca del Mezzogiorno-MedioCreditoCentrale p A (BoM)

Financial assets at fair value through other comprehensive income

tab. A6.3.1 - Movements in financial assets at FVTOCI

Description (€m)	Fixed income instruments	Equity instruments	Total
Balance at 1 January 2023	91	445	536
urchases	-	3	3
ransfers to equity reserves	-	-	-
Changes in amortised cost	2	-	2
Changes in fair value through equity	6	(4)	2
ffects of sales on profit or loss	-	-	-
Accruals	0	-	0
xtraordinary transactions	-	93	93
ales, redemptions and settlement of accruals	(0)	-	(0)
Balance at 31 December 2023	99	537	636

Fixed income instruments

his item includes one talian government bond with a nominal value of €110 million purchased during 2022 he fluctuation in fair value at 31 December 2023 was positive for €6 million and recognised in the specific equity reserve

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Equity instruments

tab. A6.3.2 - Shares at FVTOCI

Description (€m)	Balance at 31.12.2023	Balance at 31.12.22	Changes
Moneyfarm Holding L t d	55	57	(1)
sennder echnologies Gmbh	112	19	93
calapay Limited	25	25	-
exi	345	343	2
Milkman p A	-	2	(2)
Total	537	445	92

he shares at FV OC amounted to €537 million and, compared to the previous year (€445 million), changed due to the recognition of the additional share of sennder echnologies Gmbh for €93 million acquired as part of the renegotiation of the partnership, for details of which see section 2 8 Main changes to the scope of consolidation

n July 2023, oste taliane participated in a new capital increase promoted by MFM Holding Ltd with an investment of €3 million

he overall fluctuation in fair value of the item in question was negative for €4 million and recognised in the specific equity reserve

Lastly, the item includes, for €75 million the investment in CA pA (formerly Alitalia CA pA), acquired in 2013 and fully written off in 2014

Further details of the corporate transactions during the year are provided in note 3 1 – Principal corporate actions

Financial assets at fair value through profit or loss

he item includes a portion of the convertible bond issued by sennder echnologies GmbH and subscribed by oste taliane in July 2023 for about €8 5 million, representing the fair value at 31 December 2023, as well as participating financial instruments (pursuant to Article 2346, paragraph 6, of the talian Civil Code) arising from the conversion of Contingent Convertible otes28F 229 - issued by Midco pA - whose value, at 31 December 2023, was zero

Derivative financial instruments

he following transactions took place during the year:

• stipulation and settlement of three commodity swaps for the operational hedging of fuel costs relating to the air transport of mail carried out via the subsidiary, oste Air Cargo rl;
• stipulation and settlement of forty-two non-deliverable forward contracts to operationally hedge the currency risk (euro/dollar) mainly related to aircraft leasing fees for air mail transport carried out through the subsidiary oste Air Cargo rl

Finally, in October 2023, a cash flow hedge interest rate swap contract entered into in 2013 to hedge the cash flows of a €50 million bond issued on 25 October 2013 (note B 8 Financial liabilities) reached maturity he closing of the derivative resulted in the release to the statement of profit or loss, recognised under Finance ncome, of the cash flow hedge reserve

²²⁹ These are Contingent Convertible Notes with an original value of €75 million, a twenty-year term to maturity and issued by Midco SpA, which in turn owns 51% of the company Alitalia SAI SpA. The Notes were subscribed by Poste Italiane SpA in December 2014, as part of the transaction aimed at Etihad Airways' acquisition of an equity interest in Alitalia SAI. On the fulfilment of certain negative pledge conditions, in 2017 the loan was converted into participating financial instruments (as defined by art. 2346, paragraph 6 of the Italian Civil Code), carrying the same rights associated with the Notes.

of approximately €6 million, which was established as of 25 October 2015, the date from which the cash flow hedge became operative

AYM RV C A D CARD AYM AC V

tab. A6.4 - Financial assets - Payment Services and Card Payments Services

	Balance at 31.12.2023	Balance at 31.12.2022
Description (€m)	Non-current assets	Current assets	Tota l	Non curren t assets	Curren t assets	Tota l	Change s
Financial assets at amortised cost	0	299	299	0	198	198	101
Receivables	0	299	299	0	198	198	101
Financial assets at FV OC	7	0	7	8	0	8	(1)
quity instruments	7	0	7	8	0	8	(1)
Financial assets at FV L	1	0	1	0	0	0	1
Convertible bond	1	0	1	0	0	0	1
Total	7	299	306	8	198	206	100

Financial assets at amortised cost

Financial assets at amortised cost mainly refer to receivables from international settlement circuits for the acquiring service and to items in progress to be settled on prepaid cards of the M assets

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income refer entirely to the investment in the company Volante

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss refer entirely to the convertible bond loan entered into with Volantè echnologies nc in July 2023

For further information in this regard, see ote 3 1 - Principal corporate actions

A7 - INVENTORIES (€172 million)

tab. A7 - Inventories
Description (€m)	Balance at 31.12.2022	Changes recognised in profit or loss	Balance at 31.12.2023
roperties held for sale	129	8	136
Work in progress, semi-finished and finished goods and goods for resale	20	8	28
Raw, ancillary and consumable materials	9	(1)	8
Total	157	15	172

roperties held for sale refer entirely to the portion of G pA's real estate portfolio to be sold, whose fair value29F ²³⁰ at 31 December 2023 amounts to approximately €280 million

At the closing date of these financial statements, work in progress, semi-finished and finished goods and merchandise included about €4 million of final inventories related to environmental certificates held by oste Air Cargo pA and ostepay pA that were previously purchased and not used during the reporting period

A8 - TRADE RECEIVABLES (€2,407 million)

tab. A8 - Trade receivables

	Balance at 31.12.2023			Balance at 31.12.2022
Description	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
Due from customers	3	2,150	2,152	3	1,916	1,919	233
Due from arent Company (M F)	-	249	249	-	257	257	(7)
Due from subsidiaries, associates and joint ventures	-	6	6	-	5	5	2
repayments to suppliers	-	0	0	-	0	0	(0)
Total	3	2,404	2,407	3	2,179	2,182	225

Due from customers

tab. A8.1 - Due from customers

	Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
Ministries and ublic Administration entities	-	563	563	-	581	581	(18)
Cassa Depositi e restiti	-	247	247	-	21	21	226
Due from private individuals for parcel delivery services	-	505	505	-	493	493	12
Due from private individuals for mail services	-	379	379	-	395	395	(16)
Overseas counterparties	-	323	323	-	386	386	(64)
Overdrawn current accounts	-	45	45	-	40	40	5
Amounts due for other Banco osta services	-	58	58	-	62	62	(4)
Other amounts due from customers	3	558	561	3	453	457	104
rovisions for doubtful debts due from customers	(0)	(529)	(529)	(0)	(517)	(517)	(13)
Total	3	2,150	2,152	3	1,916	1,919	233

he increase in Due from customers is mainly attributable to the increase in amounts due from Cassa Depositi e restiti for amounts accrued to be invoiced at the relevant date, based on the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023, to the Agreement with Cassa Depositi e restiti renewed on 23 December 2021 for the period 2021-2024

pecifically230F ²³¹:

• Amounts due from Ministries and Public Administration entities refer mainly to the following services:

²³⁰ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 2.

²³¹ At 31 December 2023, the balance of trade receivables includes €8 million, net of the related provisions for doubtful debts, relating to rental income falling within the scope of IFRS 15 – Revenue from Contracts with Customers.

• Compensation for ublisher tariff subsidies, due from the Cabinet Office ublishing Department, amounting to €215 million, of which €55 million accrued during the year At 31 December 2023, these receivables are shown gross of the collection of an unavailable amount of €195 million, relating to the tariff subsidies applied in 2020, 2021, 2022 and until the third quarter of 2023, deposited by the Cabinet Office - ublishing Department, in a noninterest-bearing account held by the Company with the tate reasury and for this reason recorded under ayables for advances received On 29 January 2024, the uropean Commission, in the matter of tate aid, anticipated the formal decision to authorise the compensatory mechanism in favour of oste taliane for the tariff subsidies granted to publishing companies; consequently, with the communication of 31 January 2024, the Cabinet Office, in consideration of the need to guarantee the economic sustainability of the postal service for the delivery of publishing publications at subsidised rates, authorised the release of the credited sums n December 2023, €13 million was collected related to tariff subsidies charged in the years 2018-2019
• ntegrated otification and mailroom services rendered to central and local government authorities, amounting to €51 million
• Reimbursement of building, vehicle and security costs, postage and other services incurred on behalf of the Ministry of nterprise and Made in taly (M M )231F ²³² in the amount of €51 million his receivable is made up for the remaining €28 million of the original €62 million receivable for charges arising from the use of real estate and other services provided until 2012 his position, which was the subject of a legal dispute between the parties, in compliance with the first instance ruling, was partially collected in 2021 for €34 million he supplement to the balance consists of €23 million and, during 2022, following joint audits, the charges arising from the use of real estate by M M , in the period 2013 - 2021, for a total value of approximately €15 million, were defined
• Mail forwarding and notification services provided following a tender procedure for a total of €49 million
• Market Registered Mail services, totalling €33 million, provided to central and local government entities
• Unfranked mail services, totalling €18 million, provided to central and local ublic Administrations
• he payment of pensions and vouchers on behalf of (the ational nstitute of ocial ecurity), totalling €11 million
• Amounts due from Cassa Depositi e Prestiti refer to fees for Banco osta RFC's ostal savings deposits service and still not paid
• Amounts due for parcel delivery services relate mainly to shipments carried out by the arent Company and services provided by the subsidiary DA xpress Courier pA
• Amounts due for mail services refer to receivables mainly owed to the arent Company from private customers who use the "delivery and mailing" range of services
• Amounts due from overseas counterparties primarily relates to postal services carried out for overseas postal operators
• Amounts due for overdrawn current accounts derive almost exclusively from overruns due to the debiting of Banco osta's periodic fees
• Amounts due for other BancoPosta services mainly refer to intermediation services (banking, personal loans, mortgages) provided

²³² Former Ministry of Economic Development.

Due from the arent Company

his item relates to trade receivables due to the arent Company from the Ministry of the conomy and Finance

tab. A8.2 - Due from the Parent Company

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Remuneration of current account deposits	218	227	(8)
Universal ervice	31	31	-
Delegated services	30	30	(1)
ublisher tariff and electoral subsidies	1	1	-
Others	2	1	0
rovision for doubtful debts due from the arent Company	(33)	(33)	(0)
Total	249	257	(8)

pecifically:

• he remuneration of current account deposits refers almost entirely to amounts accrued in 2023 and entirely relates to the deposit of funds deriving from accounts opened by ublic Administration entities and attributable to Banco osta RFC he increase compared to 31 December 2022 is mainly due to the rise in the interest rate curve
• Receivables for Universal Service compensation includes:

tab. A8.2.1 - Universal Service compensation receivable

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Remaining balance for 2012	23	23	-
Remaining balance for 2005	9	9	-
Total	31	31	-

n the year under review, the Group received €262 million in accrued compensation for the period he amount of compensation was recognised based on the terms of the new 2020-2024 ervice Contract, effective 1 January 2020

With reference to the amount receivable for 2012, AGCom has recognised a net cost incurred by the Company of €327 million, compared with compensation of €350 million originally recognised rovision has not been made in the state budget for the remaining €23 million On 13 ovember 2014, the Company appealed AGCom's decision before the Regional Administrative Court ( AR)

he outstanding receivable relating to compensation for 2005 was subject to cuts in the budget laws for 2007 and 2008

rovisions for doubtful debts have been made for the full amount of the above receivables

• Amounts due for delegated services refer exclusively to the amount accrued in 2023 and relating to the remuneration of services performed by Banco osta on behalf of the state in accordance with a special agreement with the M F, expired on 19 May 2023 for the two-year period 2023-2024
• Receivables arising from electoral subsidies refer to compensation for previous years, for which no provision has been made in the state budget

mpairment of trade receivables

Movements in the expected provisions for doubtful debts (due from customers and the arent Company) are as follows:

tab. A8.3 - Movements in provisions for doubtful debts due from customers

Description (€m)	Balance at 31.12.2022	Net provisions	Uses	Balance at 31.12. 2023
rivate customers	333	34	(25)	342
ublic administration entities	84	(2)	(3)	79
Overseas postal operators	12	(1)	-	11
	429	30	(28)	432
nterest on late payments	88	26	(17)	98
Due from the arent Company	33	0	-	33
Total	550	57	(44)	562

et provisions of €34 million mainly refer to receivables subject to bankruptcy proceedings and receivables entrusted to the legal department for recovery Utilisations for the year mainly refer to the write-off of receivables following the conclusion of bankruptcy proceedings and agreements, and to the write-off of receivables for current accounts with a debtor balance, for which it was ascertained that recovery actions were not cost effective, also taking into account the small amount of the individual credit positions

he provisions for doubtful debts due from the M F reflect the absence of funds in the state budget, meaning it is not possible to collect certain amounts receivable, recognised on the basis of legislation or contracts and agreements in effect at the time of recognition, largely relating to the Universal ervice

For the sake of completeness, the following tables present details of the gross carrying amount and the provision to cover expected losses for each class of trade receivables his detail is provided separately depending on whether the model used to estimate the CL is based on an analytical or a lump-sum valuation For more details on the inputs, assumptions and estimation techniques used to calculate the impairment of financial assets, as well as for information on how collateral and other credit risk mitigation instruments are considered in the calculation of the provisions for doubtful trade debts, see Note 2.6 - Use of estimates - Impairment and stage allocation for financial instruments

Poste Italiane Group - Credit risk - Trade receivables impaired on the analytical basis (€m)
	31.12.2023	31.12.2022
Description	Gross carrying amount	Provision to cover expected losses	Gross carrying amount	Provision to cover expected losses
rade receivables
Due from customers	1,503	(234)	1,065	(231)
Cassa Depositi e restiti	248	(0)	22	(0)
Ministries and ublic Administration entities	416	(55)	411	(53)
Overseas counterparties	217	(0)	97	(0)
rivate customers	623	(179)	535	(178)
Due from the arent Company	279	(33)	288	(33)
Due from others	6	-	4	-
Total	1,788	(268)	1,357	(265)

Poste Italiane Group - Credit risk - Trade receivables impaired on the basis of the provision matrix

	31.12.2023		31.12.2022
Range of past due (€m)	Gross carrying amount	Provision to cover expected losses	Gross carrying amount	Provision to cover expected losses
ot past due trade receivables	661	(16)	770	(14)
ast due 0 - 1 year	122	(15)	216	(12)
ast due 1 - 2 years	61	(15)	71	(13)
ast due 2 - 3 years	51	(12)	48	(8)
ast due 3 - 4 years	29	(8)	27	(16)
ast due > 4 years	53	(45)	64	(63)
ositions subject to legal recovery and/or insolvency proceedings	204	(183)	177	(159)
Total	1,181	(295)	1,374	(285)

A9 - OTHER RECEIVABLES AND ASSETS (€5,135 million)

tab. A9 - Other receivables and assets Balance at 31.12.2023 Balance at 31.12.2022 Description (€m) Noncurrent assets Current assets Noncurrent assets Current assets Total Changes Total ubstitute tax paid 4,033 625 4,658 4,060 585 4,645 13 Due from social security agencies and pension funds (excl fixed-term contract settlements) - 73 73 - 138 138 (65) Receivables relating to fixed-term contract settlements 33 73 107 36 76 112 (5) Receivables for amounts that cannot be drawn on due to court rulings - 58 58 - 71 71 (13) Accrued income and prepaid expenses from trading transactions - 62 62 - 32 32 30 ax assets - 78 78 - 88 88 (9) nterest accrued on R refund - 46 46 - 46 46 (0) nterest accrued on RA refund - 0 0 - 0 0 undry receivables 22 142 164 25 126 151 16 rovisions for doubtful debts due from others (4) (108) (111) (3) (173) (177) 62 Total 4,084 1,051 5,135 4,118 986 5,106 29

pecifically:

• Substitute tax paid refers mainly to:
  • €2,206 million on non-current receivables paid in advance by oste Vita pA for the financial years 2015-2021, relating to withholding and substitute tax paid on capital gains on life policies23F ²³³;
  • €1,752 million charged to holders of nterest-bearing ostal Certificates in circulation and Class and V insurance policies for stamp duty at 31 December 202323F ²³⁴; this amount is balanced by a matching entry in "Other taxes payable" until expiration or early settlement of the nterest-bearing ostal Certificates or the insurance policies, i e the date on which the tax is payable to the tax authorities (tab B10 3);
  • €407 million relating to advances paid to the ax authorities in relation to stamp duty to be paid in virtual form in 2024 and to be recovered from customers by oste taliane;
  • €96 million relating to stamp duty charged to holders of ostal avings Books, which oste taliane pA pays in virtual form as required by law;

²³³ Of the total amount, a portion of €420 million, assessed on the basis of provisions at 31 December 2021, has yet to be paid and is accounted for in "Other taxes payable" (tab. B10.3).

²³⁴ Introduced by article 19 of Law Decree 201/2011 converted with amendments by Law 214/2011 in the manner provided for by the MEF Decree of 24 May 2012: Manner of implementation of paragraphs from 1 to 3 of article 19 of Law Decree no. 201 of 6 December 2011, on stamp duty on current accounts and financial products (Official Journal 127 of 1 June 2012).

• €30 million in advances on withholding tax on interest paid to current account holders for 2023, which is to be recovered from customers
• Due from social security agencies and pension funds totalling €73 million decreased compared to 31 December 2022, mainly as a result of the derecognition of receivables related to past items and the recovery of the residual amounts related to the periods of suspension or reduction of work for Covid-19 by means of a reconciliation with the contributions due to the ocial ecurity nstitute
• Receivables relating to fixed-term contract settlements consist of salaries to be recovered following the agreements of 13 January 2006, 10 July 2008, 27 July 2010, 18 May 2012, 21 March 2013, 30 July 2015 and 19 June 2018 between oste taliane pA and the labour unions, regarding the re-employment by court order of personnel previously employed on fixed-term contracts his item refers to receivables with a present value of €102 million from personnel, from and pension funds recoverable in the form of variable instalments, the last of which is due in 2042 he item also includes amounts due from (formerly O ) of €42 million, covered by a specific agreement with O dated 23 December 2009 ayment of this amount consists of six instalments of €6 9 million each, falling due between 30 June 2012 and 31 December 2014; negotiations are in progress with the debtor for their recovery
• Receivables for amounts that cannot be drawn on due to court rulings refer to amounts attached and not assigned to creditors, which are in the process of being recovered n January 2023, following the signing of a settlement agreement, the receivable of €12 million relating to sums embezzled from the arent Company in December 2007 as a result of an attempted fraud and held at a foreign bank was collected
• Interest accrued on IRES refund, refers to interest accruing up to 31 December 2023 on the R receivable arising from the failure to deduct personnel expenses for RA purposes, almost entirely attributable to the arent Company For the recovery of said receivable, two disputes were brought before the rovincial ax ribunal of Rome, which upheld oste taliane's appeals, ordering the Agenzia delle ntrate in Rome to refund the amounts claimed he Agenzia delle ntrate have appealed both judgements before the Regional ax ribunal and, on 23 March 2018, the ribunal upheld the Agenzia delle ntrate's appeal against one of the judgements (proceedings pursuant to Law Decree no 201/2011) oste taliane has appealed this ruling before the upreme Court of Cassation On 5 July 2023, the judgement of the Court of Cassation in the case pursuant to Law Decree no 201/2011 was published, in which the most relevant grounds of oste taliane's appeal were upheld concerning the starting date of the interest accrued on the R credit resulting from the non-deduction of labour costs for RA purposes As a result of this ruling, the case will have to be resumed before the ax Court of econd nstance to settle the amount of interest actually due to the Group he judgement concerning Law Decree no 185/2008 is currently pending before the upreme Court of Cassation lements of uncertainty about the final outcome of the case are taken into account in the provision for doubtful debts due from others
• Accrued income and prepaid expenses from trading transactions increased by €30 million compared to last year, mainly to the higher purchases by the subsidiary ostel of software licences

Movements in the provisions for doubtful debts due from others are shown below:

tab. A9.1 - Movements in Provisions for doubtful debts due from others

Description	Balance at	Net	Uses	Balance at
(€m)	31.12.2022	provisions		31.12.2023
nterest accrued on R refund ublic Administration entities for sundry services	45 -	(25) -	- -	20 -
Receivables relating to fixed-term contract settlements	24	0	-	24
Other receivables	107	(0)	(40)	67

2023 Annual Report Poste Italiane Group		oste taliane's Financial tatements at 31 December 2023
Total	177	(25)	(40)	111

At 31 December 2023, the provisions for doubtful debts due from others included the release of about €25 million following the decision of the Court of Cassation relating to the proceedings pursuant to Law Decree no 201/2011

n addition, during the year under review, having ascertained the non-recoverability of certain prior items referring to labour costs, credit items were written off by using the provision

A10 - TAX CREDITS LAW NO. 77/2020 (€8,318 million)

tab.A10 - Tax credits Law no. 77/2020
Balance at 31.12.2023				Balance at 31.12.2022
Description (€m)	Non current assets	Current assets	Total	Non current assets	Current assets	Total	Changes
ax credits at amortised cost	6,534	1,784	8,318	7,458	1,563	9,021	(703)
Total	6,534	1,784	8,318	7,458	1,563	9,021	(703)
of which Financial Activities	6,246	1,665	7,911	7,127	1,473	8,600	(689)
Of which Postal and Business Activities	288	119	407	331	90	421	(14)

his item refers to tax credits acquired by oste taliane pA against free capital resources or transferred to Banco osta RFC for resources subject to and not subject to the restriction on their use, in accordance with the provisions of the Relaunch Decree (Law Decree no 34/2020 converted with amendments by Law no 77/2020) by which tax breaks were introduced to support Citizens and Businesses to encourage economic recovery following the Covid-19 health emergency

hese receivables are measured at amortised cost as they are acquired to be used primarily for the purpose of offsetting social security or tax payables, based on the provisions of the regulations issued with reference to the characteristics of the individual receivables

Changes in these tax credits during 2023 are shown below:

Description (€m)	Carrying amount
Balance at 1 January 2023	9,021
urchases	691
Changes in amortised cost	320
Other changes	(1,714)
Balance at 31 December 2023	8,318

he main changes in the year under review refer to:

• urchases of €691 million, of which €518 million pertaining to Banco osta RFC234F ²³⁵;
• accrued income for the year amounting to €320 million, of which €309 million pertaining to Banco osta RFC;
• other changes of €1,714 million, of which €1,682 million related to offsets during the year

²³⁵ With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits.

At 31 December 2023, the fair value235F ²³⁶ of tax credits at amortised cost is €7,823 million

As part of the actions aimed at combating tax fraud perpetrated by third parties through the monetisation of tax credits, starting from the end of the 2021 financial year, a number of ublic rosecutors' Offices have implemented preventive seizures that, in some cases also involved tax credits acquired by oste taliane (some of which were subsequently released from seizure during the course of 2022) for a total nominal value of approximately €530 million at the date of preparation of these financial statements, against a value paid of roughly €451 million

he Company has put in place an operational process aimed at constantly analysing the potential economic, financial and equity risks to which it could be exposed in the event that, following legal proceedings involving third parties, it is ascertained that part of the tax credits acquired over time are the result of fraudulent conduct perpetrated by the aforementioned third parties n particular, a legal and accounting analysis was conducted to generally assess said risks and determine the accounting impact related to these potential risks, making reference to the provisions of A 37 rovisions, Contingent Assets and Contingent Liabilities (as better illustrated in the section Use of estimates), as the possible non-recovery of the carrying amount of the tax credits would not derive from a characteristic of the asset being measured or from significant increases in the credit risk after the initial recognition of the asset or, more simply, from the ascertained default of the debtor, as envisaged by the impairment model set forth in FR 9, but rather from the possibility that, for those ascertained cases of fraud, the liability of the assignee - even if a third party in good faith or an offended party to the crime - will also be called to account for assumptions other than the possible irregular use of the tax credit or for a use in excess of the tax credit received On the basis of the analyses carried out of all facts and circumstances known at the date of preparation of these financial statements, including, inter alia, requests for information received from the authorities ( ublic rosecutor's Office and Agenzia delle ntrate) and orders issued by them, also with the support of external consultants, a provision of €80 million was recognised in the year 2023, bringing the provision - liability item " rovisions for risks and charges" - to €400 million

t should be noted, however, that the current situation of significant uncertainty as to the possible outcome of the proceedings and initiatives under way by the Judicial Authorities and the Agenzia delle ntrate and the actions undertaken by the Company to protect its interests, necessarily entailed the use of a significant degree of professional judgement in determining the aforesaid provision; therefore, it cannot be excluded that it may be necessary to recognise further charges in the future

A11 – ASSETS FOR OUTWARD REINSURANCE (€233 million)

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022
	GMM	PAA	Total	GMM-VFA	PAA	Total
Asset for remaining coverage	170	8	177	22	0	22
Asset for incurred claims	23	32	56	11	11	22
Total	193	40	233	33	11	44

tab A11- Assets for outward reinsurance

his item relates to assets for outward reinsurance of the Group's insurance companies; the increase in assets of €189 million during the year is mainly attributable to the acquisition of the et Group companies

²³⁶ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 3.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he following table presents the reconciliation of the asset for remaining coverage and incurred claims related to outward reinsurance measured by the GMM method:

tab. A11.1 - Assets/(liabilities) for outward reinsurance GMM

	Asset for remaining coverage	Asset for
Description (€m)	Excluding the loss recovery component	Loss recovery component	incurred claims	Total
Assets for outward reinsurance Liabilities for outward reinsurance	22 -	- -	11 -	33 -
Net carrying amount at 1 January	22	-	11	33
Change in scope of consolidation	140	-	18	158
Reinsurance premiums paid	(46)	-	-	(46)
Amounts recoverable from reinsurers
Recovery for incurred claims and Other insurance expenses	(1)	-	43	41
Losses and loss recovery on onerous contracts	-	0	-	0
Changes in the asset for incurred claims	-	-	(2)	(2)
ffects of the change in default risk by reinsurers	0	-	(0)	0
Result of insurance services	(48)	0	40	(7)
nvestment and premium refund components	-	-	-	-
et financial revenue/costs	7	-	0	8
ffects associated with exchange rate changes	-	-	-	-
Total changes recognised in the Statement of profit or loss and
OCI	(40)	0	40	0
Cash flows Premiums paid net of amounts not related to claims recovered by
reinsurers	46	-	-	46
Amount of claims recovered by reinsurers	2	-	(47)	(45)
Other changes	-	-	-	-
Net carrying amount at 31 December	170	0	23	193
Assets for outward reinsurance	170	0	23	193
Liabilities for outward reinsurance	-	-	-	-

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Again with regard to assets for outward reinsurance measured by the GMM method, a reconciliation is provided below, broken down by the elements underlying the measurement:

tab. A11.2 - Assets/(Liabilities) for outward reinsurance GMM - Dynamics of elements underlying the measurement

Description (€m)	Present value of cash flows	Adjustment for non financial risks	Contractual service margin	Total
Assets for outward reinsurance	32	0	1	33
Liabilities for outward reinsurance	-	-	-	-
Net carrying amount at 1 January	32	0	1	33
Change in scope of consolidation	136	13	8	158
Changes in current services Contractual service margin recognised in the statement of profit or loss Change for overdue non-financial risks Adjustments based on past experience	- - 2	- (4) -	(6) - 4	(6) (4) 6
Changes in future services Changes in estimates that alter the contractual service margin Effects of contracts initially recognised in the reporting period CSM adjustment related to recoveries on initial recognition of onerous underlying insurance contracts Release of loss recovery component other than changes in cash flows of outward reinsurance contracts Change in cash flows of outward reinsurance from onerous underlying	2 (19) - - -	(2) 6 - - -	(0) 12 0 - 0	0 - 0 - 0
insurance contracts Changes in past services Adjustments to the asset for incurred claims ffect of changes in default risk by reinsurers	(2) 0	(0) -	- -	(2) 0
Result of insurance services	(17)	(1)	10	(7)
et financial revenue/costs ffects associated with exchange rate changes	7 -	- -	1 -	8 -
Total changes in the Statement of profit or loss and OCI	(8)	(1)	11	2
Cash flows Premiums paid net of amounts not related to claims recovered by reinsurers Amounts recovered from reinsurers Other changes	46 (45) -	- - -	- - -	46 (45) -
Net carrying amount at 31 December	160	13	20	193
Assets for outward reinsurance Liabilities for outward reinsurance	160 -	13 -	20 -	193 -

he following table presents, instead, the reconciliation of the asset for remaining coverage and incurred claims related to outward reinsurance measured by the AA method:

Finally, the following table shows the increase in assets for outward reinsurance broken down according to the type of event that generated them:

tab. A11.3 - Assets/(liabilities) for outward reinsurance PAA
	Asset for remaining coverage		Asset for incurred claims
Description (€m)	Excluding the loss recovery component	Loss recovery component	Present value of cash flows	Adjustment for non-financial risks	Total
Assets for outward reinsurance	0	-	10	1	11
Liabilities for outward reinsurance	-	-	-	-	-
Net carrying amount at the beginning of the period	0	-	10	1	11
Reinsurance premiums paid	(41)	-	-	-	(41)
Amounts recoverable from reinsurers
Recovery for incurred claims and Other insurance expenses	-	-	10	-	10
Losses and loss recovery on onerous contracts	-	2	-	-	2
Changes in the asset for incurred claims	-	-	21	1	21
ffects of the change in default risk by reinsurers	-	-	0	-	0
Result of insurance services	(41)	2	31	1	(8)
nvestment and premium refund components	-	-	-	-	-
et financial revenue/costs related to outward reinsurance	-	-	0	-	0
ffects associated with exchange rate changes	-	-	-	-	-
Total changes recognised in the Statement of profit or loss and OCI	(41)	2	31	1	(8)
Cash flows
Premiums paid net of amounts not related to claims recovered by reinsurers	47	-	-	-	47
Amount of claims recovered by reinsurers	-	-	(10)	-	(10)
Other changes	-	-	-	-	-
Net carrying amount at 31 December	6	2	31	1	40
Assets for outward reinsurance	6	2	31	1	40
Liabilities for outward reinsurance	-	-	-	-	-

tab. A11.4 - Outward reinsurance held and initially recognised in the reporting period

Description	Originated contracts	Contracts acquired in business combinations	Total
(€m)	Contracts without loss recovery component	Contracts with loss recovery component	Contracts without loss recovery component
stimation of the present value of future cash outflows Cash flows related to the acquisition of insurance contracts
Amount of claims and other directly attributable costs	105	0	154	260
stimation of the present value of future cash inflows	(123)	(1)	(18)	(142)
stimated adjustment for non-financial risks	6	0	13	20
Contractual service margin	12	1	8	21
Other	(0)	(0)	(0)	(0)
Increase in the asset for new outward reinsurance	(0)	0	158	158

A12 - CASH AND DEPOSITS ATTRIBUTABLE TO BANCOPOSTA (€4,671 million)

tab. A12 - Cash and deposits attributable to BancoPosta

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Cash and cash equivalents in hand	3,909	3,960	(52)
Bank deposits	762	1,888	(1,126)
Total	4,671	5,848	(1,177)

he cash and cash equivalents on hand are derived from deposits made in postal current accounts and postal savings products (subscription of nterest-bearing ostal Certificates and payments into post office savings books), or from advances withdrawn from the tate reasury to guarantee the operations of ost Offices hese funds, which are held at ost Offices (€1,298 million) and at service236F ²³⁷ companies (€2,611 million), may not be used for purposes other than to repay obligations contracted in the transactions described above

A13 - CASH AND CASH EQUIVALENTS (€4,211 million)

tab. A13 - Cash and cash equivalents

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Bank deposits and amounts held at the talian reasury	3,270	2,962	308
Deposits with the M F	873	1,991	(1,117)
Cash and cash equivalents in hand	68	31	37
Total	4,211	4,983	(772)

he balance of cash and cash equivalents at 31 December 2023 includes restricted cash of approximately €2,576 million, of which €2,312 million relates to liquidity used to cover insurance technical provisions, €195 million deposited by the Cabinet Office - ublishing Department in a non-interest-bearing account with the tate reasury as an advance on payments for reductions in publisher fees granted by the arent Company (note A8 - rade receivables), €39 million in liquidity to be transferred to principals as part of the management of collections and payments of the subsidiary L ay, €14 million restricted as a result of judicial provisions relating to various disputes and €16 million for management of cash on hand and other restrictions

he decrease in deposits with the MEF compared to the previous year is mainly due to a change in the allocation of loans, in order to optimise the yields on deposits

A14 - NON-CURRENT ASSETS AND DISPOSAL GROUPS HELD FOR SALE (€50 million)

he balance of €50 million refers to the investment in Cronos Vita Assicurazioni, held 22 5% by oste Vita and classified as an asset held for sale ( FR 5) as reported in ection 2 8 - Basis of consolidation to which reference should be made

With regard to the valuation of the investment, it is recorded at its purchase value, as defined by IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations he Group believes that any deviations in value, compared to initial recognition, may be affected by the trend in lapses Given the trend of the requests received from 1 ovember 2023 to the closing date of the accounts by urovita's former policyholders, no significant deviations from those estimated have emerged, such as to suggest that the value of the investment may be subject to impairment; for this reason, the Group currently considers this risk to be insignificant and, consequently, also considering the small exposure, has not deemed it necessary to perform stress analyses

²³⁷ They carry out transport and custody of valuables awaiting payment to the State Treasury.

EQUITY

B1 – EQUITY (€10,439 million)

he following table shows a reconciliation of the arent Company's equity and net profit/(loss) for the year with the consolidated amounts:

tab. B1 - Reconciliation of equity

Description (€m)	Equity at 31.12.2023	Changes in equity during 2023	Net profit/(loss) for 2023	Equity at 31.12.2022
Financial statements of Poste Italiane SpA	5,653	456	1,390	3,808
Balance of profit (loss) of consolidated subsidiaries	9,640	-	1,445	8,196
nvestments accounted for using the equity method	162	(1)	20	142
Balance of valuation reserves of investee companies	(135)	206	-	(342)
First-time adoption of FR 17	(290)	-	(13)	(277)
ffects from corporate actions	(416)	6	(25)	(397)
Derecognition of infra-group dividends	(4,612)	-	(873)	(3,739)
Derecognition of adjustments to value of consolidated companies	573	-	(13)	586
Amortisation/ mpairment of goodwill	(156)	-	-	(156)
urchase rice Allocation Adjustments	(10)	-	(7)	(3)
mpairments of disposal groups held for sale	(40)	-	-	(40)
Recognition of liabilities for call options	(191)	(101)	(3)	(88)
Other consolidation adjustments	145	(1)	2	144
Equity attributable to owners of the Parent	10,322	566	1,922	7,834
quity attributable to non-controlling interests	106	67	-	38
(excluding profit/(loss))
et profit/(loss) attributable to non-controlling interests	11	(5)	11	6
Equity attributable to non-controlling interests	117	62	11	44
TOTAL CONSOLIDATED EQUITY	10,439	628	1,933	7,878

At 31 December 2023, earnings per share were €1 483 (€1 214 at 31 December 2022), calculated as the ratio of the Group profit for the year of €1,922 million to the weighted average of the number of outstanding ordinary shares

B2 - SHARE CAPITAL (€1,306 million)

oste taliane pA's share capital consists of 1,306,110,000 no-par value ordinary shares, of which Cassa Depositi e restiti pA (CD ) holds 35% and the Ministry of the conomy and Finance holds 29 3%, while the remaining shares are held by institutional and retail investors

At 31 December 2023, the Company held 10,675,798 treasury shares (representing approximately 0 817% of the share capital) with a total value of approximately €94 million All the shares in issue are fully subscribed and paid up o preference shares have been issued

B3 – SHAREHOLDER TRANSACTIONS

As approved by the hareholders' Meeting of 8 May 2023, on 21 June 2023, the arent Company distributed dividends of €570 million (dividend per share equal to €0 44) as the balance for 2022, taking into account the interim dividend of €273 million (dividend per share equal to €0 21) already paid in ovember 2022 n addition, on 6 ovember 2023, the oste taliane's Board of Directors resolved to advance part of the ordinary dividend for 2023 as an interim dividend he interim dividend of €307 million was distributed on 22 ovember 2023 (dividend per share of €0 237)

2023 Annual Report

B4 – RESERVES (€1,083 million)

tab. B4 - Reserves

Description (€m)	Legal reserve	BancoPosta RFC reserve	Equity instruments - perpetual hybrid bonds	Fair value reserve	Cash flow hedge reserve	Reserve for insurance contracts issued and outward reinsurance	Translation reserve	Reserve for investments accounted for using equity method	Incentive plans reserve	Total
Balance at 1 January 2023	299	1,210	800	(10,592)	(127)	7,876	(0)	5	19	(509)
ncrease/(Decrease) in fair value during the year ax effect of changes in fair value	- -	- -	- -	7,689 (2,324)	80 (23)	(5,529) 1,755	- -	- -	- -	2,239 (591)
ransfers to profit or loss from	-	-	-	223	(318)	-	-	-	-	(95)
realisation ax effect of transfers to profit or loss	-	-	-	(63)	90	-	-	-	-	27
ncrease/(decrease) for expected losses	-	-	-	5	-	-	-	-	-	5
hare of after-tax comprehensive income/(loss) of investees accounted for using equity method	-	-	-	-	-	-	-	0	-	0
Other changes	-	-	-	-	-	-	(0)	-	-	(0)
Gains/(losses) recognised in equity	-	-	-	5,530	(170)	(3,774)	(0)	0	-	1,586
ncentive plans	-	-	-	-	-	-	-	-	8	8
Other changes	-	-	-	-	-	-	-	(1)	-	(1)
Balance at 31 December 2023	299	1,210	800	(5,062)	(297)	4,102	(0)	4	27	1,083

he reserve for quity instruments - perpetual hybrid bonds includes the issue of the perpetual hybrid bond for an amount of €800 million

he fair value reserve regards changes in the value of financial assets at fair value through other comprehensive income he increase of €7,689 million in fair value during 2023 reflects:

• a net increase of €1,940 million in financial assets attributable to the Group's Financial ervices segment;
• a net increase of €5,749 million in financial assets attributable to the Group's nsurance ervices segment;
• a net increase of €2 million in financial assets attributable to the Group's ostal and Business ervices segment;
• a net decrease of €1 million in financial assets attributable to the Group's ayments and Mobile segment

he fair value reserve related to insurance contracts measured with the VFA model showed a negative balance of €4,234 million at 31 December 2023, including expected credit losses on financial instruments related to eparately Managed Accounts (negative €8,084 million at 31 December 2022) he following is a reconciliation of the balance of the reserve related to insurance contracts:

2023 Annual Report
Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

Description (€m)	2023 VFA fair value reserve
Balance at 1 January	(8,084)
Changes in fair value	5,578
et change in amounts reclassified in the statement of profit or loss	-
ffect related to market operations	(12)
axation	(1,715)
Balance at 31 December	(4,234)

the cash flow hedge reserve, attributable to the arent Company, reflects changes in the fair value of the effective portion of cash flow hedges n 2023, positive changes in fair value totalling €80 million related entirely to the net positive change in the value of derivative financial instruments of Financial activities;

he reserve for insurance contracts issued and outward reinsurance includes the change in the fair value of instruments within the Group's nsurance activities, attributable to policyholders and allocated to insurance liabilities as a result of the adoption of the OC option on the FR 17 liability portfolio, with the intention of aligning the financial and mirroring effects between the OC reserve and the effects on the statement of profit or loss

the Incentive plans reserve includes the estimate of the valuations for the year relating to the long-term " erformance hare L " and "Deliver" incentive plans and the MBO short-term incentive plans, carried out on the basis of the provisions of FR 2

LIABILITIES

B5 - LIABILITIES FOR INSURANCE CONTRACTS ( UR 155,338 million)

tab. B5 - Liabilities under insurance contracts

Description		Balance at 31.12.2023		Balance at 31.12.2022
(€m)	GMM-VFA	PAA	Total	GMM-VFA	PAA	Total
Liability for remaining coverage	154,106	(8)	154,098	140,380	(33)	140,348
Liability for incurred claims	980	261	1,240	824	208	1,032
Total	155,086	252	155,338	141,205	175	141,380
of which:
Future cash flows	138,578	240	138,818	125,242	159	125,401
Contractual service margin	13,743	-	13,743	12,902	-	12,902
Adjustment for non-financial risk	2,765	12	2,777	3,061	16	3,077

his item refers to liabilities within the scope of the Group's nsurance activities, and includes:

• the liability for remaining coverage of €154,098 million, which includes the Contractual ervice Margin (C M) of €13,743 million, the present value of future cash flows of €137,774 million, and the adjustment for non-financial risk of €2,765 million;
• the liability for incurred claims amounting to €1,240 million

he following table presents a reconciliation of the liability for remaining coverage and incurred claims of insurance contracts measured by GMM or VFA methods:

tab. B5.1 - Movement in liabilities under insurance contracts GMM-VFA

Description	Liability for remaining coverage		Liability for
(€m)	Excluding loss component	Loss component	incurred claims	Total
Liabilities under insurance contracts	140,371	9	824	141,205
Assets under insurance contracts	-	-	-	-
Net carrying amount at 1 January	140,371	9	824	141,205
Change in scope of consolidation	370	2	11	383
nsurance revenue	(2,137)	-	-	(2,137)
Costs for insurance services
Incurred claims and other directly attributable costs	-	-	346	346
Changes in the liability for incurred claims	-	-	146	146
Losses and related recoveries on onerous contracts	-	(3)	-	(3)
Amortisation of contract acquisition costs	214	-	-	214
Result of insurance services	(1,923)	(3)	492	(1,434)
nvestment and premium refund components	(14,319)	-	14,319	-
Financial costs/revenue relating to insurance contracts issued ffects associated with exchange rate changes	11,900 -	0 -	0 -	11,901 -
Total changes recognised in the Statement of profit or loss and OCI	(4,342)	(3)	14,812	10,467
Cash flows
Premiums received	18,004	-	-	18,004
Payments related to contract acquisition costs	(305)	-	-	(305)
Paid claims and other cash outflows	-	-	(14,668)	(14,668)
Other changes	-	-	-	-
Net carrying amount at 31 December	154,098	8	980	155,086
Liabilities under insurance contracts	154,098	8	980	155,086
Assets under insurance contracts	-	-	-	-

he value of insurance liabilities increased during the course of the year, mainly as a result of inflows for the period and as a result of positive market trends that generated capital gains he Liability for remaining coverage includes the balance of Assets related to the acquisition of insurance contracts, which amounted to €3 million at 31 December 2023 his amount will be fully released by 31 December 2029

Again, with reference to insurance liabilities measured using the GMM or VFA methods, a reconciliation is provided below, broken down by elements underlying measurement:

tab. B5.2 - Liabilities/(assets) under insurance contracts GMM VFA

Description (€m)		Present value of future cash flows	Adjustment for non-financial risk	Contractual service margin	Total
Liabilities under insurance contracts		125,242	3,061	12,902	141,20
Assets under insurance contracts		-	-	-	5 -
Net carrying amount at 1 January		125,242	3,061	12,902	141,20 5
Change in scope of consolidation		263	23	97	383
Changes in current services	Contractual service margin recognised in the statement of profit or loss	-	-	(1,285)	(1,285)
	Change for overdue non-financial risks Adjustments based on past experience	- (1,808)	(120) -	- 1,807	(120) (2)
Changes in future services	Changes in contractual service margin Losses on groups of onerous contracts and related recoveries Effects of contracts initially recognised in the period	1,796 (4) (1,095)	(347) (0) 148	(1,450) - 949	(1) (5) 2
Changes in past services	Adjustments to the liability for incurred claims	143	(0)	-	143
xperience-related changes		(167)	-	-	(167)
Result of insurance services		(1,136)	(319)	21	(1,434)
Financial costs/revenue		11,179	-	723	11,901
ffects associated with exchange rate changes		-	-	-	-
Total changes recognised in the Statement of profit or loss and OCI		10,042	(319)	744	10,467
Cash flows	Premiums received Payments related to contract acquisition costs	18,004 (305)	- -	- -	18,004 (305) (14,668
	Paid claims and other cash outflows	(14,668)	-	-	)
Other changes		-	-	-	-
Net carrying amount at 31 December		138,578	2,765	13,743	155,08 6
Liabilities under insurance contracts		138,578	2,765	13,743	155,08 6
Assets under insurance contracts		-	-	-	-

he present value of future cash flows increased by €13,336 million from the value recorded at the end of 2022 he change is mainly attributable to the result of financial operations in the amount of €11,179 million and actual cash flows in the amount of €3,031 million, which were slightly offset by experience-related adjustments on future performance

he component of Adjustment for non-financial risk decreased by €296 million compared to the balance at 31 December 2022 his was mainly due to the release of this component for the period in the amount of €120 million and the change in the Group's exposure to non-financial risks, which resulted in a revision of estimates for future services in the amount of €347 million, partially offset by the effect of new production in the amount of €148 million

he Contractual service margin recorded a pre-release growth of €2,126 million, mainly related to the contribution of new production on future margins of €949 million, of which €852 million related to the actual new production recorded in the period and €97 million from the contribution to C M resulting from the change in scope following the acquisition of the et Group companies he Contractual service margin also increased due to the positive performance of the markets, which generated a growth in the fair value of the underlying assets that was more than proportional to the growth in the related liabilities, generating a profit of €723 million

he release of the Contractual service margin for the period amounted to €1,285 million, of which €116 million related to the additional release and €28 million related to the release of et Group companies

he Group expects to release the Contractual service margin, at 31 December 2023, in future years as depicted below:

tab. B5.3 Contractual service margin GMM

Description (€m)	Insurance contracts issued	Reinsurance contracts held
1 – 3 years old	3,377	15
4 – 6 years old	2,951	3
Over 6 years	7,415	1

Below is a reconciliation of the liability for remaining coverage and incurred claims of insurance contracts measured according to the AA method:

tab. B5.4 Liabilities/(assets) under insurance contracts PAA

	Liability for remaining coverage		Liability for incurred claims
Description (€m)	Excluding loss component	Loss component	Present value of cash flows	Adjustment for non-financial risks	Total
Liabilities under insurance contracts Assets under insurance contracts	(46) -	13 -	192 -	16 -	175 -
Net carrying amount at 1 January	(46)	13	192	16	175
nsurance revenue	(413)	-	-		- (413)
Costs for insurance services Incurred claims and other directly attributable costs Changes in the liability for incurred claims Losses and related recoveries on onerous contracts Amortisation of contract acquisition costs	- - - 48	- - 4 -	255 52 - -	- (4) - -	255 49 4 48
Result of insurance services	(388)	4	307	(4)	(80)
nvestment and premium refund components Financial costs/revenue relating to insurance contracts issued ffects associated with exchange rate changes	- (0) -	- - -	- 4 -	- - -	- 4 -
Total changes recognised in the Statement of profit or loss and OCI	(388)	4	311	(4)	(76)
Cash flows Premiums received Payments related to contract acquisition costs Paid claims and other cash outflows	460 (50) -	- - -	- - (255)	- -	460 (50) - (255)
Other changes	-	-	-	-	-
Net carrying amount at 31 December	(26)	17	249	12	252
Liabilities under insurance contracts Assets under insurance contracts	(26)	17	249	12	252

With regard to liabilities under insurance contracts measured using the AA method, these increased by approximately €78 million as a result, primarily, of placements during the financial year, a portion of which will be attributable to the next financial year

For the sake of full disclosure, the increase in liabilities arising from insurance contracts is detailed below, broken down according to the type of event that generated them

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

tab. B5.5 - Insurance contracts issued and initially recognised in the reporting period

Description (€m)		Originated contracts	combinations	Contracts acquired in business	Contracts transferred by third parties		Total
		Non onerous contract s	Onerous contract s	Non onerous contract s	Onerous contract s	Non onerous contract s
stimation of the present value of future cash outflows
Contract acquisition costs	1	(140)	0	2	-	-	(137)
Amount of claims and other directly attributable costs	(58)	(11,237)	4	233	-	-	(11,058 )
stimation of the present value of future cash inflows	59	12,334	(0)	21	-	-	12,413
stimated adjustment for non-financial risks	1	(122)	3	21	-	-	(97)
Contractual service margin	-	(836)	-	100	-	-	(736)
Other	-	-	-	-	-	-	-
Increase in liability for new insurance contracts issued	3	0	7	376	-	-	386

Finally, the table below represents the dynamics of the Contractual service margin of insurance contracts issued broken down by contracts existing at the time of transition to FR 17, and insurance contracts issued and initially recognised in the reporting period:

tab. B5.6 Dynamics of insurance revenue and Contractual service margin of insurance contracts issued broken down by contracts existing at the time of transition to IFRS 17

Description (€m)	New contracts and contracts measured on the transition date with full retroactive application method	Contracts measured on the transition date using the modified retroactive application method	Contracts measured on the transition date using the fair value method	Carve out contracts	Total
Contractual service margin - Opening balances	11	-	115	12,776	12,902
Change in scope of consolidation	97	-	-	-	97
Changes related to current services
Contractual service margin recognised in the statement of profit or loss to reflect services rendered	(33)	-	(18)	(1,233)	(1,285)
Changes related to future services
Changes in estimates that modify the Contractual service margin	(25)	-	(8)	390	357
ffects of contracts initially recognised in the reporting period	64	-	-	885	949
Financial revenue/costs	5	-	(0)	718	723
Total changes recognised in the statement of profit or loss
and in the	10	-	(27)	761	744
statement of comprehensive income
Contractual service margin - Closing	117	-	89	13,537	13,743
balances

B6 - PROVISIONS FOR RISKS AND CHARGES (€1,336 million)

Movements in provisions for risks and charges are as follows:

tab. B6 - Movements in provisions for risks and charges for FY 2023

Description (€m)	Balance at 01.01.2023	Provisions	Finance costs	Transfers to profit or loss	Uses	Change in scope of consolidation	Balance at 31.12.2023
rovisions for operational risks rovisions for disputes with third parties rovisions for disputes with staff (1) rovisions for personnel expenses rovisions for early retirement incentives rovisions for operational risks - tax credits Law no 77/2020 rovisions for taxation/social security contributions Other provisions for risks and charges	120 298 35 109 354 320 20 98	6 30 13 128 159 80 3 15	- 4 - - - - 0 -	(7) (42) (0) (32) - - (0) (4)	(17) (43) (9) (64) (229) - (0) (10)	- 0 - - - - - (0)	102 248 38 141 285 400 23 99
Total Overall analysis of provisions: - non-current portion - current portion	1,355 804 551 1,355	434	4	(86)	(371)	0	1,336 782 554 1,336

(1) et provisions for ersonnel expenses amount to €9 million ervice costs (legal assistance) total €3 million

pecifically:

• Provisions for operational risks, which mainly relate to liabilities arising from Banco osta's operations, mainly reflect risks related to the distribution of postal savings products issued in past years, estimated risks for charges and expenses to be incurred as a result of foreclosures suffered by Banco osta mainly in its capacity as a third party, impairments and adjustments to income from previous years and fraud Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled
• Provisions for disputes with third parties regard the present value of expected liabilities deriving from different types of legal and out-of-court disputes with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled
• Provisions for disputes with staff regard liabilities that may arise following labour litigation and disputes of various types he changes in the year refer to the update of the estimate of the liabilities and the related legal expenses, taking account of both the overall value of negative outcomes in terms of litigation
• Provisions for personnel expenses are made to cover expected liabilities arising in relation to the cost of labour, which are certain or likely to occur but whose estimated amount is subject to change hey have increased by €128 million during the year to reflect the estimatevalue of new liabilities and decreased as a result of past contingent liabilities that failed to materialise (€32 million) and settled disputes (€64 million)
• Provisions for early retirement incentives reflect the estimated costs to be incurred as a result of the Company's binding commitment to pay early retirement incentives on a voluntary basis, under the current redundancy scheme agreed with the labour unions for a determinate number of employees who will leave the Company by 31 December 2025 he provisions made at 31 December 2022 were utilised for €229 million
• he provisions for risks - tax credits Law no. 77/2020 were established to cover probable liabilities analytically described in ote A10 - ax Credits Law no 77/2020
• Provisions for taxation/social security contributions have been made to cover potential future tax and social security liabilities
• Other provisions for risks and charges cover probable liabilities of various type, including: estimated liabilities deriving from the risk that specific legal actions undertaken in order to reverse seizures of the arent Company's assets may be unable to recover the related amounts, claims for rent arrears on properties used free of charge by the arent Company, claims for payment of accrued interest expense due to certain suppliers and frauds

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

B7 – EMPLOYEE TERMINATION BENEFITS (€637 million)

he following movements in employee termination benefits took place in 2023:

tab. B7 - Movements in provisions for employee termination benefits

(€m)	FY 2023
Balance at 1 January	705
Current service cost nterest component ffect of actuarial (gains)/losses Uses for the period	3 26 8 (106)
Balance at 31 December 2023	637

he current service cost is recognised in personnel expenses, whilst the interest component is recognised in finance costs

B7.1 - Actuarial gains and losses

	31.12.2023 Employee termination benefits
Change in demographic assumptions	0
Change in financial assumptions	15
Other experience-related adjustments	(6)
Total	8

he sensitivity of employee termination benefits to changes in the principal actuarial assumptions is analysed below

tab. B7.2 - Sensitivity analysis

	31.12.2023
	Employee termination benefits
nflation rate +0 25%	644
nflation rate -0 25%	630
Discount rate +0 25%	626
Discount rate -0 25%	648
urnover rate +0 25%	639
urnover rate -0 25%	635

he following table provides further information in relation to employee termination benefits

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

tab. B7.3 - Other information

	31.12.2023
xpected service cost	2 5
Average duration of defined benefit plan	8 0
Average employee turnover per annum	2 0%

B8 - FINANCIAL LIABILITIES (€95,393 million)

tab. B8 - Financial liabilities

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Financial liabilities at amortised cost	8,984		85,098 94,082	10,047		92,534 102,582	(8,500)
Financial liabilities at FV L	168	3	171	69	19	88	83
Derivative financial instruments	1,091	47	1,138	823	152	975	163
Financial liabilities vs ubsidiaries	-	2	2	-	1	1	1
Total	10,243		85,150 95,393	10,939		92,706 103,644	(8,251)
of which Financial Activities	7,571	74,009	81,581	7,932	82,825	90,757	(9,177)
of which Insurance Activities	108	52	160	0	39	40	120
Of which Postal and Business Activities	2,556	814	3,370	2,999	380	3,379	(9)
Of which Payment Services and Card Payments Activities	8	10,275	10,283	8	9,460	9,468	815

Financial liabilities by operating segment break down as follows:

F A C AL AC V

tab. B8.1 - Financial liabilities - Financial Services

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Financial liabilities at amortised cost	6,480	73,962	80,443	7,109	82,673	89,782	(9,340)
ostal current accounts	-	61,908	61,908	-	68,336	68,336	(6,428)
Loans	6,480	1,736	8,217	7,109	3,016	10,125	(1,909)
M F account held at the reasury	-	5,371	5,371	-	4,169	4,169	1,202
Other financial liabilities	0	4,946	4,946	0	7,153	7,153	(2,207) -
Derivative financial instruments	1,091	47	1,138	823	152	975	164
Total	7,571	74,009	81,581	7,932	82,825	90,757	(9,177)

Financial liabilities at amortised cost

ostal current accounts

hey represent Banco osta's direct deposits, and include interest accrued at 31 December 2023, which was settled with customers in January 2024 he decrease in this item with respect to 31 December 2022 is mainly due to the reduction in ublic Administration stocks

Loans

At 31 December 2023, outstanding liabilities of €8,217 million relate to repurchase agreements entered into by the arent Company with leading financial institutions and Central Counterparties, amounting to a total nominal value of €11,456 million A total of €7,102 million of this amount regards Long erm Repos and €3,451 million regards ordinary loan operations, the resources from both invested in talian fixed income government securities and as funding for deposits used as collateral Repurchase agreements with a nominal value of €3,996 million were the subject of fair value hedge transactions executed to hedge interest rate risk

Finally, financial assets and liabilities relating to repurchase agreements managed through the Central Counterparty that meet the requirements of A 32 are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022)

he fair value237F ²³⁸ of the repurchase agreements in question at 31 December 2023 is €7,996 million

M F account held at the reasury

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilitie s	Current liabilitie s	Total	Non current liabilitie s	Current liabilitie s	Total	Change s
Balance of cash flows for advances	-	5,168	5,16 8	-	4,083	4,083	1,085
Balance of cash flows from management of postal savings	-	30	30	-	(84)	(84)	114
Amounts payable due to theft	-	157	157	-	155	155	2
Amounts payable for operational risks	-	16	16	-	14	14	2
Total	-	5,371	5,37 1	-	4,169	4,16 9	1,202

tab. B8.1.1 - MEF account held at the Treasury

he balance of cash flows for advances, represents the net amount payable as a result of advances from the M F to meet the cash requirements of Banco osta hese break down as follows:

tab. B8.1.2 - Balance of cash flows for advances

		Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
et advances	-	5,167	5,167	-	4,083	4,083	1,084
M F postal current accounts and other payables	-	670	670	-	670	670	(0)
Ministry of Justice - Orders for payment	-	1	1	-	0	0	0
M F - tate pensions	-	(670)	(670)	-	(670)	(670)	0

²³⁸ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.

2023 Annual Report Poste Italiane Group				oste taliane's Financial tatements at 31 December 2023
Total	-	5,168	5,168	-	4,083	4,083	1,085

he balance of cash flows from the management of postal savings, amounting to a negative €30 million, represents the balance of withdrawals less deposits during the last two days of the year and cleared early in the following year he balance at 31 December 2023 consists of €124 million payable to Cassa Depositi e restiti, and €94 million of amounts due from the M F for nterest-bearing ostal Certificates issued on its behalf

Amounts payable due to thefts from ost Offices of €157 million regard the Company's liability to the M F on behalf of the talian reasury for losses resulting from theft and fraud his liability derives from cash withdrawals from the reasury to make up for the losses resulting from these criminal acts, in order to ensure that post offices can continue to operate

Amounts payable for operational risks for €16 million regard the portion of advances obtained to fund the operations of Banco osta, in relation to which asset under recovery is certain or probable

Other financial liabilities

Other financial liabilities have a fair value that approximates to their carrying amount

tab. B8.1.3 - Other financial liabilities - Financial Services

	Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Domestic and international money transfers	-	1,071	1,071	-	1,108	1,108	(37)
Guarantee deposits	-	2,831	2,831	-	4,824	4,824	(1,993)
Cheques to be credited to savings books	-	230	230	-	183	183	47
ndorsed cheques	-	408	408	-	476	476	(68)
Amounts to be credited to customers	-	83	83	-	87	87	(4)
Other amounts payable to third parties	-	139	139	-	173	173	(33)
Other items in process	-	183	183	-	302	302	(119)
Total	0	4,946	4,946	0	7,153	7,153	(2,207)

Payables for guarantee deposits refer for €2,811 million to sums received from counterparties for interest rate swap transactions (collateral provided by specific Credit upport Annexes) and for €20 million to sums received from counterparties for repo transactions (collateral provided by specific Global Master Repurchase Agreements) he decrease in this item compared to 31 December 2022 is mainly attributable to the reduction of fair value hedge derivatives following early extinguishment transactions

Derivative financial instruments

Movements of the item in question during 2023 are described in note A6 – Financial assets

URA C AC V

tab. B8.2 - Financial liabilities - Insurance Services

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Financial liabilities at amortised cost	10	49	59	0	39	40	19
Loans	10	0	10	-	-	-	10
Lease payables	0	1	1	0	1	1	0
Other financial liabilities	-	48	48	-	39	39	9
Financial liabilities at FV L	98	3	101	-	-	-	101
Total	108	52	160	0	39	40	120

Within the insurance activities, there are two 10-year subordinated bonds issued by et nsurance in 2020 and 2021 respectively: the first, convertible, with a nominal value of €200 thousand (fair value at 31 December 2023 of €174 thousand) and the second with a nominal value of €12 5 million (fair value at 31 December 2023 of €10 9 million)

O AL A D BU AC V

tab. B8.3 - Financial liabilities - Postal and Business Services

	Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Financial liabilities at amortised cost	2,486	814	3,300	2,931	361	3,291	9
Loans Bonds Due to financial institutions Other borrowings Lease payables	1,446 498 948 - 1,037	502 500 2 - 293	1,948 998 950 - 1,330	1,823 997 825 1 1,102	53 50 2 - 295	1,876 1,048 827 1 1,397	73 (50) 123 (1) (67) -
Other financial liabilities	3	19	22	6	13	18	3
Financial liabilities at FV L	70	-	70	69	19	88	- (18)
Total	2,556	814	3,370	2,999	380	3,379	(9)

Financial liabilities at amortised cost

Loans

Loans are unsecured and are not subject to financial covenants, which would require Group companies to comply with economic and financial ratios or maintain a certain minimum rating For the B financing and the C B financing, a minimum rating level of BBB- (or equivalent) by Moody's and & for the B and by at least two of the three rating agencies of oste taliane for C B is required n the event of a rating loss, this is without prejudice to the right of both banks to request additional collateral or, in the case of the B, an increase in the margin f no agreement is reached, immediate early repayment of the loans may be demanded tandard negative pledge provisions do apply, however238F 239

Bonds

he item Bonds refers to a senior unsecured loan with a total nominal value of €1 billion issued by oste taliane on 10 December 2020 in two tranches, placed in public form to institutional investors as part of the €2 5 billion uro Medium erm otes ( M ) programme deposited with the Luxembourg tock xchange he first tranche of €500 million matures on 10 December 2024, has an above-par issue price of 100 10 with fixed annual coupon of 0 00% and an effective yield to maturity of -0 025%; the second tranche of €500 million matures on 10 December 2028, with an issue price below par of 99 758, a fixed annual coupon of 0 50% and an effective yield to maturity of 0 531% At 31 December 2023, the fair value239F 240 of the loan was €916 million

A loan with a nominal value of €50 million, privately placed and issued at par on 25 October 2013 reached maturity in October 2023

²³⁹ A commitment given to creditors by which a borrower undertakes not to give senior security or other restrictions on assets to other lenders ranking pari passu with creditors, unless the same degree of protection is also offered to them.

²⁴⁰ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 1.

Due to financial institutions

tab. B8.3.1 - Due to financial institutions

	Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
B fixed rate loan maturing 12/03/26	173	-	173	173	-	173	-
B fixed rate loan maturing 16/10/26	400	-	400	400	-	400	-
B fixed rate loan maturing 19/05/2028	150	-	150	150	-	150	-
B fixed rate loan maturing 02/05/2028	100	-	100	100	-	100	-
C B variable rate loan maturing 28/12/30	125	-	125	-	-	-	125
Other loans	-	1	1	2	1	3	(2)
Accrued interest expense	-	1	1	-	1	1	0
							-
Total	948	2	950	825	2	827	123

V: Variable-rate loan F: Fixed-rate loan

At 31 December 2023, no committed and uncommitted credit lines were used for short-term financing

On 18 December 2023, a medium-/long-term credit line for a total of €250 million was signed with the C B "Council of urope Development Bank", to support projects and investments with the aims of social integration, support for public infrastructure and sustainability On 28 December 2023, the first tranche of €125 million was disbursed, bearing interest at a variable rate (6-month uribor rate plus spread), with repayment in constant principal instalments after a three-year grace period and maturity on 28 December 2030

At 31 December 2023, the fair value240F ²⁴¹ of the four B loans totalled €778 million and that of the C B loan was €128 million

Lease payables

Lease liabilities at 31 December 2023 amounted to €1,330 million For more details on the change in this item, see ote A4 - Right-of-use assets

AYM RV C A D CARD AYM AC V

table B8.4 - Financial liabilities - Payment Services and Card Payments

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current		liabilities Total Changes
Lease payables	8	1	9	8	1	9	(0)
Other financial liabilities	-		10,274 10,274	-		9,459 9,459	815
Management of prepaid cards and other M items	-		10,039 10,039	-		9,270 9,270	768
Amounts to be credited to customers	-	60	60	-	45	45	16
RAV, F23, F24 and road tax	-	93	93	-	105	105	(12)
Others	-	81	81	-	39	39	42
Total	8		10,275 10,283	8		9,460 9,468	815

Liabilities for management of prepaid card refer to the subsidiary oste ay pA

²⁴¹ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 2.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

D B /(FU D )

he following table provides an analysis of the net debt/(funds) at 31 December 2023, by operating segment:

Net debt/(funds) at 31 December 2023

Balance at 31.12.2023 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile		Eliminations Consolidated	of which related parties
Financial liabilities	5,017	93,076	429	10,478	(13,606)	95,393
Financial liabilities at amortised cost	3,300	81,446	59	10,283	(1,004)	94,084	5,532
ostal current accounts	0	62,913	-	-	(1,004)	61,908 424	0
Bonds	998	-	10	-	-	1,008	-
Due to financial institutions	950	8,217	-	-	-	9,167	-
Other borrowings	-	-	-	-	-	-	-
Lease payables	1,330	0	1	9	-	1,341	9
Finance lease liabilities	-	-	-	-	-	-	-
M F account held at the reasury	-	5,371	-	-	-	5,371	5,371
Other financial liabilities	22	4,946	48	10,274	-	15,290	152
Financial liabilities at FV L	70	-	101	-	-	171	-
Derivative financial instruments	0	1,138	-	-	-	1,138	201
ntersegment financial liabilities	1,646	10,492	269	195	(12,602)	-	-
Liabilities under insurance contracts	-	-	155,339	-	(1)	155,338	-
Financial assets	(1,205)	(80,636)	(156,394)	(11,507)	12,582	(237,159)
Financial instruments at amortised cost	(9)	(42,673)	(2,123)	(299)	(0)	(45,103)	(11,877)
Financial instruments at FV OC	(636)	(33,100)	(105,852)	(7)	-	(139,594)	-
Financial instruments at FV L	(9)	(26)	(48,170)	(1)	-	(48,205)	(22)
Derivative financial instruments	(0)	(4,257)	-	-	-	(4,257)	(167)
ntersegment financial assets	(552)	(581)	(249)	(11,201)	12,582	-	-
Tax credits Law no. 77/2020	(407)	(7,912)	-	-	-	(8,318)
Assets for outward reinsurance	-	-	(233)	-	-	(233)	-
Net debt/(net financial surplus)	3,405	4,528	(859)	(1,028)	(1,025)	5,021
Cash and deposits attributable to BancoPosta	-	(4,671)	-	-	-	(4,671)	-
Cash and cash equivalents	(650)	(940)	(3,561)	(65)	1,004	(4,211)	(874)
Net debt/(funds)	2,755	(1,082)	(4,420)	(1,093)	(21)	(3,861)

Net debt/(funds) at 31 December 2022

Balance at 31.12.2022 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile		Eliminations Consolidated	of which related parties
Financial liabilities	4,918	100,941	303	9,557	(12,074)	103,644
Financial liabilities at amortised cost	3,291	90,298	40	9,468	(515)	102,582	4,385
ostal current accounts	-	68,852	-	-	(515)	68,336	1
Bonds	1,048	-	-	-	-	1,048	-
Due to financial institutions	827	10,125	-	-	-	10,952	-
Other borrowings	1	-	-	-	-	1	-
Lease payables	1,397	0	1	9	-	1,407	8
Finance lease liabilities	0	-	-	-	-	0	-
M F account held at the reasury	-	4,169	-	-	-	4,169	4,169
Other financial liabilities	18	7,153	39	9,459	-	16,669	207
Financial liabilities at FV L	88	-	-	-	-	88	-
Derivative financial instruments	0	975	-	-	-	975	193

Poste Italiane Group						oste taliane's Financial tatements at 31 December 2023
ntersegment financial liabilities	1,539	9,668	263	89	(11,559)	-	-
Liabilities under insurance contracts	-	-	141,381	-	(1)	141,380	-
Financial assets Financial instruments at amortised cost Financial instruments at FV OC Financial instruments at FV L Derivative financial instruments ntersegment financial assets	(1,083) (3) (536) (1) (0) (543)	(83,701) (43,901) (33,190) (40) (6,109) (460)	(142,351) (2,193) (96,501) (43,461) - (196)	(10,545) (198) (8) - - (10,339)	11,539 (0) - - - 11,539	(226,141) (46,295) (130,235) (43,501) (6,110) -	(14,838) (502) (21) (203) -
Tax credits Law no. 77/2020	(420)	(8,601)	-	-	-	(9,021)	-
Assets for outward reinsurance	-	-	(44)	-	-	(44)	-
Net debt/(net financial surplus)	3,415	8,640	(710)	(988)	(537)	9,819
Cash and deposits attributable to BancoPosta	-	(5,848)	-	-	-	(5,848)	-
Cash and cash equivalents	(575)	(2,018)	(2,732)	(172)	515	(4,983)	(1,991)
Net debt/(funds)	2,839	773	(3,442)	(1,161)	(22)	(1,012)

otal net debt/(funds) at 31 December 2023 showed funds of €3,861 million, up €2,848 million from 31 December 2022 (funds of €1,012 million) he change during the period is largely attributable to the positive valuation effects for the year of approximately €2 1 billion of the investments classified in the FV OC category, held mainly by the Financial ervices trategic Business Unit (approximately €1 9 billion) and residually by the nsurance ervices trategic Business Units (roughly €0 2 billion) he change also includes a positive operating result of €2 6 billion (of which €1 9 billion is attributable to profit for the period and €0 9 billion to amortisation/depreciation for the year), the positive effect of the change in working capital and taxes of approximately €0 2 billion, capital expenditure of €0 8 billion, dividend payments totalling €0 9 billion (of which €307 million relates to the interim dividend planned for 2023) and other decreases totalling €0 3 billion, mainly attributable to the increase in financial liabilities for leases falling under FR 16 Finally, the change includes the negative effect deriving essentially from the acquisition of et nsurance (outlay of around €108 million) and oste Vita's stake in Cronos (roughly €49 5 million including the second capital increase subscribed for approximately €47 8 million)

An analysis of the et debt/(funds) of the Mail, arcels and Distribution segment at 31 December 2023, in accordance with MA recommendation 32-382-1138, is provided below:

Financial debt ESMA
Description (€m)	At 31.12.2023	At 31.12.2022
A Cash and cash equivalents	(650)	(575)
B Cash equivalents C Other current financial assets	- (6)	- (1)
D. Liquidity (A + B + C)	(656)	(577)
Current financial debt (including debt instruments, but excluding the current portion of non-current financial debt)	813	379
F Current portion of the non-current financial payable	1	1
G. Current financial debt (E + F)	814	381
H. Net current financial debt (G + D)	158	(196)
on-current financial debt (excluding current portion and debt instruments)	2,058	2,001
J Debt instruments	498	997
K rade payables and other non-current payables	15	18
L. Non-current financial debt (I + J + K)	2,571	3,017
M. Total financial debt (H + L)	2,729	2,821

Reconciliation of financial debt ESMA

2023 Annual Report

Description	At 31.12.2023	At 31.12.2022
(€m)
M. Total financial debt (H + L)	2,729	2,821
on-current financial assets	(647)	(539)
K rade payables and other non-current payables	(15)	(18)
ax credits Law no 77/2020	(407)	(420)
Net debt/(funds)	1,661	1,843
ntersegment financial receivables and borrowings	1,094	996
Net debt/(funds) including intersegment transactions	2,755	2,839

For information regarding the oste Group's credit lines and available liquidity at 31 December 2023, reference should be made to note 6 - Risk management - Financial risks - Liquidity risk

Changes in financial liabilities arising from financing activities

he following reconciliation of financial liabilities is provided in accordance with A 7, following the amendments introduced by U Regulation 1990/2017 of 6 ovember 2017

tab. B8.4- Changes in liabilities arising from financing activities

Description (€m)	Balance at 31.12.2022	Net cash flow from/(for) financing activities	Net cash flow from/(for) operating activities (*)	Non cash flows	Balance at 31.12.2023
Loans	12,000	77	(2,822)	921	10,176
Bonds	1,048	(50)	-	10	1,008
Due to financial institutions	10,952	127	(2,823)	911	9,167
Other borrowings	1	-	1	(0)	2
Lease payables	1,407	(298)	-	231	1,341
Other financial liabilities	16,669	(33)	(190)	(1,160)	15,286
Total	30,076	(254)	(3,012)	(8)	26,803

B9 - TRADE PAYABLES (€2,252 million)

tab. B9 - Trade payables

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Due to suppliers	1,625	1,655	(30)
Contract liabilities	563	553	11
Due to subsidiaries	3	3	(0)
Due to associates	61	23	37
Total	2,252	2,234	19

Due to suppliers

tab. B9.1 - Due to suppliers

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
talian suppliers	1,384	1,402	(18)
Foreign suppliers	106	79	27
Overseas counterparties (1)	135	173	(38)
Total	1,625	1,655	(30)

(1) he amount due to overseas counterparties relates to fees payable to overseas postal operators and companies in return for postal and telegraphic services received

Contract liabilities

tab. B9.2 - Movements in contract liabilities

Description (€m)	Balance at 01.01.2023	Change due to recognition of revenue for period	Other changes	Balance at 31.12.2023
repayments and advances from customers	434	-	11	445
Liabilities for volume discounts	1	-	(0)	0
Liabilities for fees to be refunded	52	35	(43)	43
Other contract liabilities	67	(22)	30	75
Total	553	13	(2)	563

Prepayments and advances from customers relate mainly to amounts received from customers for the following services to be rendered:

tab. B9.2.1 - Prepayments and advances from customers

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
repayments from overseas counterparties Advances for ublishing from CM [tab A8 1] Advances for shipments Advances for other services	179 195 59 13	223 125 67 19	(44) 71 (9) (6)
Total	445	434	12

Liabilities for fees to be refunded represent the estimated liability linked to the refund of fees on loan products sold after 1 January 2018, under the terms of which the related fees must be refunded if the customer opts for early cancellation of the agreement

Other contract liabilities primarily regard ostamat and " ostepay volution" card fees collected in advance

B10 - OTHER LIABILITIES (€4,343 million)

tab. B10 - Other liabilities

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Due to staff	10	682	692	10	720	731	(38)
ocial security payables	16	434	450	20	439	459	(8)
Other taxes payable	1,826	913	2,739	1,790	658	2,448	292
undry payables	55	199	254	52	136	187	67
Accrued liabilities and deferred income	150	56	207	133	46	179	28
Total	2,058	2,285	4,343	2,004	1,998	4,002	340

Due to staff

hese items primarily regard accrued amounts that have yet to be paid at 31 December 2023 he breakdown is as follows:

tab. B10.1 - Due to staff

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
Fourteenth month salaries	-	211	211	-	208	208	3
ncentives	10	372	382	10	408	418	(36)
Accrued vacation pay	-	43	43	-	41	41	2
Other amounts due to staff	-	55	55	-	63	63	(8)
Total	10	682	692	10	720	731	(38)

he decrease in this item compared to the year 2022 is mainly attributable to the extraordinary component due to lower early retirement incentives

ocial security payables

tab. B10.2 - Social security payables

		Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non-current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities Total		Changes
ension funds A L Other agencies	2 - 15 (0)	333 87 0 15	334 87 15 15	1 - 18 0	330 89 0 19	332 89 19 19	2 (2) (4) (4)
Total	16	434	450	20	439	459	(8)

Other taxes payable

tab. B10.3 - Other taxes payable

		Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
tamp duty payable	1,826	132	1,958	1,790	21	1,810	148
ax due on insurance provisions	-	496	496	-	420	420	76
Withholding tax on employees' and consultants' salaries	-	94	94	-	91	91	3
VA payable	-	23	23	-	24	24	(1)
ubstitute tax	-	40	40	-	32	32	8
Withholding tax on postal current accounts	-	74	74	-	29	29	45
Other taxes due	-	55	55	-	41	41	13
Total	1,826	913	2,739	1,790	658	2,448	292

pecifically:

• he stamp duty payable includes the balance due to the reasury for the tax paid virtually in the financial year 2023 he non-current portion of the stamp duty mainly relates to the amount accrued at 31 December 2023 on nterestbearing ostal Certificates outstanding and on Class and V insurance policies pursuant to the new law referred to in ote A9 – Other receivables and assets
• Tax due on insurance provisions relates to oste Vita pA and is described in note A9

undry payables

tab. B10.4 - Sundry payables

	Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non current liabilities	Current liabilities	Total	Non current liabilities	Current liabilities	Total	Changes
undry payables attributable to Banco osta ecurity deposits Other payables	- 16 39	3 0 195	3 17 234	- 14 38	5 0 130	5 14 168	(2) 2 66
Total	55	199	254	52	135	187	67

Accrued liabilities and deferred income

Accrued liabilities and deferred income, which increased by €28 million compared to the year of comparison, include deferred income of €124 million for the non-repayable grant received in advance from the arent Company for the implementation of the " olis roject - Home of Digital ervices"

4.3 NOTES TO THE STATEMENT OF PROFIT OR LOSS

C1 – REVENUE FROM MAIL, PARCELS AND OTHER (€3,746 million)

his item breaks down as follows:

Description (€m)	FY 2023	FY 2022	Changes
Mail	1,753	1,749	3
arcels	1,395	1,395	0
Other revenue	281	190	91
Total external revenue	3,429	3,335	- 94
Universal ervice compensation	262	262	-
ublisher tariff subsidies	55	54	1
Total revenue	3,746	3,651	95
of which Revenue from contracts with customers	3,120	3,179	(59)
recognised at a point in time	376	371	5
recognised over time	2,744	2,808	(64)

External revenue showed an increase compared to the financial year 2022, largely attributable to the capital gain of approximately €109 million related to the sale of the controlling interest in the company sennder (see ote 2 8 - Basis of consolidation)

Universal Service compensation relates to amounts paid by the M F to cover the costs of fulfilling the U O Annual compensation, amounting to €262 million, is established in the 2020-2024 Contratto di rogramma ( ervice Contract) in force on 1 January 2020

Publisher tariff subsidies241F ²⁴² relate to the amount receivable by oste taliane from the Cabinet Office - ublishing department as compensation for the discounts applied to publishers and non-profit organisations when sending mail he compensation is determined on the basis of the tariffs set in the decree issued by the Ministry of nterprise and Made in taly (former Mi ) in agreement with the Ministry of the conomy and Finance, on 21 October 2010 and Law Decree 63 of 18 May 2012, as converted into Law 103 of 16 July 2012 With AGCom Resolution 454/22/CO of 30 December 2022, the new universal basic tariffs of the subsidised publishing products included in the Universal ervice were defined he Resolution provided for a gradual increase in the basic tariffs with a consequent increase in the compensation received by the Company per item sent at a subsidised rate he amount of subsidies that the Company has granted is covered in the 2023 tate Budget

C2 – NET REVENUE FROM FINANCIAL SERVICES (€5,229 million)

Net revenue from financial services regards services provided mainly within the arent Company's Banco osta RFC and the subsidiary Banco osta Fondi GR

²⁴² Law no. 8 of 28 February 2020 - ordered that reimbursements of publishing tariff subsidies to Poste Italiane continue "for a duration equal to that of the universal postal service" (i.e. until April 2026). The application of the regulation is subject to approval by the European Commission.

his item breaks down as follows:

tab. C2 - Revenue from Financial Services

Description (€m)	FY 2023	FY 2022	Changes
Revenue from financial services	5,516	4,684	832
ncome from financial activities	271	428	(157)
Other operating income	7	13	(6)
xpenses from financial activities	(566)	(187)	(379)
Total	5,229	4,938	290
of which Revenue from contracts with customers	2,643	2,520	123
recognised at a point in time	231	233	(2)
recognised over time	2,412	2,288	124

Revenue from financial services breaks down as follows:

tab. C2.1 - Revenue from financial services

Description (€m)	FY 2023	FY 2022	Changes
ncome from investment of postal current account deposits and free cash	2,702	2,008	694
Fees for collection of postal savings deposits	1,740	1,600	140
Other revenue from current account services	426	426	1
Commissions on payment of bills by payment slip	208	216	(8)
Distribution of loan products	157	192	(35)
ncome from delegated services	91	89	2
Mutual fund management fees	143	118	25
Money transfers	17	13	4
Other	32	22	10
Total	5,516	4,684	832

Revenue from financial services showed an increase compared to the year 2022, mainly due to income from investment of postal current account deposits and free cash and the remuneration of postal savings deposits

pecifically:

• Income from investment of postal current account deposits and free cash breaks down as follows:

tab. C2.1.1 - Income from investment of postal current account deposits and free cash

Description (€m)	FY 2023	FY 2022	Changes
ncome from investments in securities	1,962	1,482	480
nterest income on securities at amortised cost	780	677	103
nterest income on securities at FVOC	936	821	115
nterest income (expense) on asset swaps of CFH on securities at FVOC and AC	5	20	(15)
nterest income (expense) on asset swaps of FVH on securities at FVOC and AC	171	(79)	250
nterest income on repurchase agreements	70	43	27
ncome from investments in tax credits	309	273	36
nterest income on tax credits at AC	309	189	120
nterest income on tax credits at FV OC	-	84	(84)
ncome from deposits held with the M F	446	252	194
Remuneration of current account deposits (deposited with the M F)	441	323	118
Differential on derivatives stabilising returns	5	(71)	76
ortion of interest income on own liquidity (finance income)	(15)	1	(6)
Other income	0	2	-
Total	2,702	2,008	694

he increase in this item compared to the previous year is mainly attributable to the income from investments in securities and the income from deposits held with the M F

Income from investments in securities relates to interest earned on investment of deposits paid into postal current accounts by private customers he amount of income includes the impact of the interest rate hedge he increase in this item compared to financial year 2022 was mainly due to the effects of the upward shift in the interest rate curve, which had a positive effect on the differentials exchanged in fair value hedge transactions, and to the higher profitability of both the new securities that entered the portfolio in financial year 2023, and those subject to the broader restructuring of fair value hedges as described in ote A6 - Financial assets

Income from investments in tax credits relates to interest accrued during the year on the investments described in ote A10 - Tax Credits Law no. 77/2020

Income from deposits held with the MEF primarily represents accrued interest for the year on amounts deposited at ublic Administration entities, remunerated at a variable rate as described in ote A6 - Financial assets he increase compared to 31 December 2022 is mainly due to the rise in the interest rate curve

• Fees for the collection of postal savings deposits relates to remuneration for the provision and redemption of nterest-bearing ostal Certificates and payments into and withdrawals from ostal avings Books his service is provided by oste taliane pA on behalf of Cassa Depositi e restiti he increase in this item reflects the consideration accrued at the relevant date, under the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023, to the Agreement with Cassa Depositi e restiti renewed on 23 December 2021 for the period 2021-2024
• Revenue from current account services primarily relates to charges on current accounts, fees on amounts collected and on statements of account sent to customers, annual fees on debit cards and related transactions
• Revenue from the distribution of loan products relates to commissions received by the arent Company on the placement of personal loans and mortgages on behalf of third parties

Income from financial activities breaks down as follows: tab. C2.2 - Income from financial activities

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Description (€m)	FY 2023	FY 2022	Changes
ncome from financial instruments at FV OC	164	262	(98)
Realised gains	164	262	(98)
ncome from financial instruments at amortised cost Realised gains	48 48	129 129	(82) (82)
ncome from financial instruments at FV L Fair value gains	8 7	2 1	6 6
Realised gains	1	-	1
ncome from financial instruments - cash flow hedges	-	1	(1)
Fair value gains	-	1	(1)
ncome from fair value hedges	0	17	(16)
Fair value gains	0	17	(16)
Foreign exchange gains	3	5	- (2)
Fair value gains	1	1	(0)
Realised gains	2	4	(2)
Other income	48	12	36
Total	271	428	(157)

he decrease in Other income from financial activities, compared to the previous year, was mainly due to lower realised gains from financial instruments at FV OC and at amortised cost, partially offset by higher other income for interest accrued on guarantee deposits paid to counterparties

Expenses from financial activities breaks down as follows:

tab. C2.3 - Expenses from financial activities

Description (€m)	FY 2023	FY 2022	Changes
xpenses from financial instruments at FV OC	54	4	50
Realised losses	54	4	50
xpenses from financial instruments at amortised cost	-	53	(53)
Realised losses	-	53	(53)
xpenses from financial instruments at FV L	7	2	5
Losses from valuation	4	1	3
Realised losses	3	0	2
nterest expense	505	127	378
nterest on customers' deposits	219	85	133
nterest expense on repurchase agreements	128	14	113
Due to the arent Company	-	4	(4)
on guarantee deposits	158	24	134
nterest expense on own liquid funds (finance costs)	-	(1)	1
Total	566	187	379

Expenses from financial activities increased compared to the year 2022 mainly due to the effect of the change in the interest rate curve, which generated higher interest expenses on collateral deposits received from counterparties, on repurchase agreements and on postal current accounts of public customers

C3 – NET REVENUE FROM INSURANCE SERVICES (€1,567 million)

tab. C3 - Net revenue from Insurance Services

Description (€m)	FY 2023	FY 2022	Changes
Revenue from insurance contracts issued	2,550	2,456	94
Costs arising from insurance contracts issued	(1,058)	(805)	(253)
Revenue/(costs) from outward reinsurance	(15)	(8)	(7)
ncome and (expenses) from financial operations and other income/expenses	6,458	(1,532)	7,990
et financial (costs)/revenue relating to insurance contracts issued	(6,373)	1,539	(7,911)
et financial revenue/(costs) related to outward reinsurance	5	(0)	5
Total	1,567	1,650	(83)

et revenue from insurance services decreased compared to 2022 from €1,650 million to €1,567 million, mainly due to the lower C M release recognised during the period: €1,285 million compared to €1,515 million in the year of comparison; in particular, in the year 2022, the release had benefited from the additional yield related to the differential between the riskneutral curve used to value the C M and the actual real world curve his decrease was only partly offset by the positive contribution of income, net of the portion reversed to policyholders, from financial operations (+€79 million compared to financial year 2022), given the improved financial dynamics and the higher release of the Adjustment for non-financial risk (+€31 million) compared to the same period of 2022

he breakdown of revenue from insurance contracts and costs arising from insurance contracts is shown below

he breakdown of Revenue from insurance contracts issued is as follows:

tab. C3.1 - Revenue from insurance contracts issued

Description (€m)	FY 2023	FY 2022	Changes
Contracts measured according to GMM and VFA	2,137	2,139	(2)
Change in Liability for remaining coverage Incurred claims and other insurance service costs expected Changes in the adjustment for non-financial risks Contractual service margin recognised in the statement of profit or loss for services provided Other changes	1,923 516 120 1,285 2	1,965 360 89 1,515 0	(41) 156 31 (231) 2
Acquisition costs of recovered insurance contracts	214	174	40
Contracts measured according to the PAA	413	317	96
Total	2,550	2,456	94

At the end of the reporting period, insurance revenue from contracts measured upon transition to FR 17 using the Fair Value Approach amounted to €58 million, for contracts subject to carve-out24F ²⁴³ amounted to €1,909 million, with the remainder relating to revenue from new contracts recognised in the period and contracts for which the Full Retrospective Approach was adopted

²⁴³ Contracts for which the annual cohort exemption was applied.

he breakdown of Costs from insurance contracts issued is as follows:

tab. C3.2 - Costs from insurance contracts issued

Description (€m)	FY 2023	FY 2022	Changes
Contracts measured according to GMM and VFA	703	533	170
ncurred claims and other directly attributable costs Changes in the liability for incurred claims Losses on onerous contracts and recovery of such losses Amortisation of insurance contract acquisition costs Other	346 146 (3) 214 (1)	360 (1) 0 174 -	(14) 147 (3) 40 (1)
Contracts measured according to the PAA	355	271	84
Total	1,058	805	253

he breakdown of revenue/(costs) from outward reinsurance is as follows:

tab. C3.3– Revenue/(costs) from outward reinsurance

Description (€m)	FY 2023	FY 2022	Changes
Outward reinsurance measured under GMM	(48)	0	(48)
Change in asset for remaining coverage	(48)	0	(48)
Amount of claims and other recoverable costs expected	(35)	0	(35)
Changes in the adjustment for non-financial risks	(4)	(0)	(4)
Contractual service margin recognised in the statement of profit or loss for services received	(6)	(0)	(6)
Other	(3)	0	(3)
Other costs directly attributable to outward reinsurance	0	0	0
Outward reinsurance measured under PAA	(41)	(7)	(34)
Total costs from outward reinsurance	(89)	(7)	(82)
ffects of changes in default risk by reinsurers	0	0	0
Amount of claims and other expenses recovered	0	0	(0)
Changes in the asset for incurred claims	38	(1)	39
Other recoveries	2	0	2
Revenue from outward reinsurance measured under PAA	33	(0)
Total	(15)	(8)	(7)

he breakdown of Income and (Expenses) from financial operations and other income/expenses is as follows:

tab. C3.4 - Income and (expenses) from financial operations and other income/expenses

Description (€m)	FY 2023	FY 2022	Changes
ncome from financial operations and other income xpenses from financial operations and other expenses	6,982 (525)	4,434 (5,966)	2,549 5,441
Total	6,458	(1,532)	7,990

tab. C3.4.1 - Income from financial operations and other income

Description (€m)	FY 2023	FY 2022	Changes
ncome from financial instruments at FV OC	3,217	3,613	(396)
nterest	3,202	3,549	(347)
Realised gains	15	64	(49)
Dividends	0	-
ncome from financial instruments at amortised cost	6	6	0
nterest	6	6	0
Realised gains	-	-	-
ncome from financial instruments at FV L	3,600	693	2,907
nterest	553	321	233
Fair value gains	2,893	335	2,557
Realised gains	154	37	117
Other income	160	122	38
Total	6,982	4,434	2,549

he increase in Income from financial operations and other income is mainly attributable to valuation gains from financial instruments at FV L

tab. C3.4.2 - Expenses from financial operations and other expenses

Description (€m)	FY 2023	FY 2022	Changes
xpenses from financial instruments at FVOC nterest Realised losses	46 0 46	252 5 247	(206) (5) (202)
xpenses from financial instruments at FV L Losses from valuation Realised losses	469 289 181	5,711 5,382 329	(5,242) (5,093) (149)
mpairment losses/(reversals of impairment losses) due to credit risk Other expenses	7 3	(4) (14)	11 17 -
Total	525	5,966	(5,441)

he decrease in Expenses from financial operations and other expenses is mainly attributable to expenses from the valuation of financial instruments at FV L

hese valuation gains and losses, related almost entirely to the investments included in the separately managed accounts, were almost entirely relegated to policyholders through the mirroring mechanism and included in the item " et financial (costs)/revenue relating to insurance contracts issued"

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

tab. C3.5 - Net financial (costs)/revenue relating to insurance contracts issued

Description (€m)	FY 2023	FY 2022	Changes
Accrued interest	(12)	0	(12)
ffects of changes in interest rates and other financial assumptions	(1)	1	(2)
Change in fair value of underlying assets of contracts measured under VFA	(6,359)	1,538	(7,897)
ffects of exchange rate changes	0	0	0
Other	0	0	0
Total	(6,373)	1,539	(7,911)

tab. C3.6 - Net financial revenue/(costs) related to outward reinsurance

Description (€m)	FY 2023	FY 2022	Changes
Accrued interest	5	0	5
ffects of changes in interest rates and other financial assumptions	0	(0)	0
ffects of exchange rate changes	0	0	0
Other	0	0	0
Total	5	(0)	5

C4 – REVENUE FROM PAYMENTS AND MOBILE SERVICES (€1,586 million)

his item breaks down as follows:

tab. C4 - Revenue from payments and mobile

Description (€m)	FY 2023	FY 2022	Changes
lectronic money	623	581	42
Fees for issue and use of prepaid cards	409	423	(14)
Acquiring	60	47	13
Other fees	154	111	44
Mobile	327	317	11
ayments services	473	233	240
ayment lips	280	68	212
Commissions for processing tax payments using forms F23/F24	46	48	(1)
Money transfers	147	109	38
Other products and services	(0)	9	(9)
Revenue from energy services	157	12	145
Other operating income	6	4	1
Total	1,586	1,147	440
of which Revenue from contracts with customers	1,306	1,127	179
recognised at a point in time	438	485	(47)
recognised over time	868	642	226

hese consist of revenue from card payment products and payment services, revenue from mobile telephony services and revenue from the energy segment, which are mainly generated by oste ay pA and its direct subsidiaries

Revenue from payments and mobile services posted an increase of €440 million compared to the same period of last year, with a positive contribution from all segments Of particular note is the growth in revenue from collection and reporting services, taking into account the full 2023 contribution of L Holding and Lis ay (consolidated from eptember 2022), and revenue from the energy segment

C5 - COST OF GOODS AND SERVICES (€3,237 million)

tab. C5 - Cost of goods and services

Description (€m)	FY 2023	FY 2022	Changes
ervice costs	2,906	2,619	287
Lease expense	163	137	26
Raw, ancillary and consumable materials and goods for resale	303	190	113
Allocation of costs directly attributable to insurance contracts	(135)	(119)	(16)
Total	3,237	2,827	410

Costs of goods and services (adjusted for costs directly attributable to insurance contracts) increased by a total of €410 million compared to the financial year 2022, mainly due to the generalised increase in prices resulting from the international inflationary scenario and the expansion of the company perimeter that occurred mainly in the second half of the previous year

ervice costs

tab. C5.1 - Service costs

Description (€m)	FY 2023	FY 2022	Changes
ransport of mail, parcels and forms	1,146	1,084	62
Credit and debit card fees and charges	322	218	105
Outsourcing fees and external service charges	281	243	38
Routine maintenance and technical assistance	247	250	(3)
Mobile telecommunication services for customers	182	169	13
ersonnel services	141	129	12
nergy and water	101	80	21
Cleaning, waste disposal and security	95	109	(15)
Advertising and promotions	78	62	16
ransport of cash	57	62	(5)
xchange of mail and telegraphy	44	42	2
Asset management fees	43	43	(0)
elecommunications and data transmission	40	43	(3)
lectricity and gas transmission costs	34	0	33
Consultants' fees and legal expenses	19	18	1
lectronic document management, printing and enveloping services	10	12	(1)
Remuneration and expenses of tatutory Auditors	2	1	0
Other	66	54	12
Total	2,906	2,619	287

he rise in service costs was mainly due to the increase in credit/debit card management fees and charges, costs for logistics and delivery services related to the parcels segment, fees related to the increased use of cloud technology, and electricity and gas transmission costs of the energy segment

Lease expense

tab. C5.2 - Lease expense

Description (€m)	FY 2023	FY 2022	Changes
Real estate leases and ancillary costs	113	86	27
Vehicle leases quipment hire and software licences	33 4	36 3	(3) 1
Other lease expense	13	12	1
Total	163	137	26

Raw, ancillary and consumable materials and goods for resale

tab. C5.3 - Raw, ancillary and consumable materials and goods for resale

Description (€m)	FY 2023	FY 2022	Changes
Consumables, advertising materials and goods for resale Fuels and lubricants	109 68	87 74	22 (6)
lectricity and gas costs	115	13	102
rinting of postage and revenue stamps lectronic money card	6 15	4 9	2 6
M cards and scratch cards Change in inventories of work in progress, semi-finished and finished goods and goods for resale	1 (8)	1 (5)	(1) (3)
Change in inventories of raw, ancillary and consumable materials Change in property held for sale Others	1 (7) 3	6 1 0	(5) (7) 3
Total	303	190	113

he increase compared to the financial year 2022 was mainly affected by the generalised increase in the purchase prices of fuel and raw materials, higher costs in the energy segment as a result of the launch of the commercial offer during the year, and the expansion of the company scope

C6 - PERSONNEL EXPENSES (€5,170 million)

ersonnel expenses include the cost of personnel seconded to other organisations he recovery of such expenses is posted to Other operating income ersonnel expenses break down as follows:

tab. C6 - Personnel expenses

Description (€m)	Note	FY 2023	FY 2022	Changes
Wages and salaries		4,076	3,856	220
ocial security contributions		1,157	1,099	58
mployee termination benefits: current service cost	[tab B7]	3	2	1
mployee termination benefits: supplementary pension funds and		238	234	4
Agency staff		4	3	1
Remuneration and expenses paid to Directors		5	3	1
arly retirement incentives		12	22	(11)
et provisions (reversals) for disputes with staff	[tab B6]	10	(3)	13
Allocations to the provisions for early retirement incentives	[tab B6]	159	54	105
Amounts recovered from staff due to disputes		(3)	(4)	1
hare-based payments		12	9	3
Other personnel expenses/(cost recoveries)		(29)	(48)	19
Allocation of costs directly attributable to insurance contracts		(473)	(404)	(69)
Total		5,170	4,823	347

Personnel expenses (adjusted for costs directly attributable to insurance contracts) increased by €347 million compared to the year 2022 attributable, for the ordinary component, primarily to the increase in the unit cost and, for the extraordinary component, to higher early retirement incentives and the additional and extraordinary performance bonus, paid in ovember 2023, for approximately €130 million he increase in the unit cost is mainly attributable to the increase on contractual minimums triggered in July 2022 in connection with the ational Collective Labour Agreement renewed in June 2021 and the increase in the variable component driven by the share linked to commercial action

et provisions for disputes with staff and provisions for early retirement incentives are described in note B6 – Provisions for risks and charges

he following table shows the Group's average and year-end headcount:

tab. C6.1 - Number of employees

	Average		Year end
Category	FY 2023	FY 2022	31.12.23	31.12.22
xecutives Middle managers Operational staff Back-office staff	692 15,338 88,540 6,334	660 15,136 89,871 4,619	688 15,279 86,349 6,475	679 15,161 89,896 6,080
Total employees on permanent contracts (*)	110,904	110,286	108,791	111,816

(*) Figures expressed in full time equivalent terms

Furthermore, taking account of personnel on flexible contracts, the average number of full-time equivalent personnel is 119,310 (in 2022: 119,806)

C7 - DEPRECIATION, AMORTISATION AND IMPAIRMENTS (€811 million)

his item breaks down as follows:

tab. C7 - Depreciation, amortisation and impairments

Description (€m)	FY 2023	FY 2022	Changes
Depreciation of property, plant and equipment	239	230	9
mpairments/recoveries/adjustments of property, plant and equipment	3	(4)	7
Depreciation of investment property	1	1	(0)
Amortisation and impairments of intangible assets	366	354	12
Depreciation of right-of-use assets	272	251	21
Allocation of costs directly attributable to insurance contracts	(72)	(61)	(11)
Total	811	769	42

Depreciation, amortisation and impairments (adjusted for costs directly attributable to insurance contracts) increased by €42 million compared to the financial year 2022 he increase is attributable to rights of use (€21 million) mainly for the expansion of the leased fleet held by the arent Company, to intangible assets (€12 million) for investments in software applications that have become available for use and for assets identified as part of the purchase price allocation processes on acquisitions made during 2022, and to property, plant and equipment (€9 million)

C8 - CAPITALISED COSTS AND EXPENSES (€56 million)

Capitalised costs and expenses break down as follows:

tab. C8 - Increases relating to assets under construction

FY 2023	FY 2022	Changes
		(2)
2	3	(2)
		-
54	38	16
14	3	12
39	33	5
1	2	(1)
	41	14
	2 56	3

C9 - OTHER OPERATING COSTS (€275 million)

Other operating costs break down as follows:

tab. C9 - Other operating costs

Description (€m)	FY 2023	FY 2022	Changes
et provisions for risks and charges made/(released)	81	323	(241)
for disputes with third parties	(12)	24	(36)
for operational risks	(1)	(11)	10
for other risks and charges	11	(10)	21
for taxation	3	(1)	4
for risks on tax credit - Law no 77/2020	80	320	(240)
Operational risk events	28	25	3
hefts	4	2	2
Loss of Banco osta assets, net of recoveries	3	4	(1)
Other operating losses of Banco osta	21	19	2
Capital losses	3	2	1
Municipal property tax, urban waste tax and other taxes and duties	113	107	6
Other current expenses	71	62	9
Allocation of costs directly attributable to insurance contracts	(22)	(10)	(11)
Total	275	508	(233)

Other operating costs (adjusted for costs directly attributable to insurance contracts) decreased compared to the year of comparison due to lower provisions for risks and charges, see in this regard ote B6 - Provisions for risks and charges and Note A10 - Tax credits Law no. 77/2020

C10 – IMPAIRMENT LOSSES/(REVERSALS OF IMPAIRMENT LOSSES) ON DEBT INSTRUMENTS, RECEIVABLES AND OTHER ASSETS (€71 million)

C10 - Impairment losses/(Reversals of impairment losses) on debt instruments, receivables and other assets

Description (€m)	FY 2023	FY 202 2	Change s
et impairments and losses on receivables and other assets	64	97	(33)
mpairment losses/(reversals of impairment losses) on financial activities mpairment losses/(reversals of impairment losses) on debt instruments at FV OC	(0) 3	1 4	(1) (1)
mpairment losses/(reversals of impairment losses) on debt instruments at amortised cost	4	2	3
Total	71	104	(34)

C11 – FINANCE INCOME (€181 million) AND COSTS (€119 million)

ncome from and costs incurred on financial instruments relate to assets other than those in which deposits collected by Banco osta and the financial and insurance businesses are invested

Finance income

tab. C11.1 - Finance income

Description (€m)	FY 2023	FY 2022	Changes
ncome from financial instruments at FV OC nterest Accrued differentials on fair value hedges Realised gains Dividends ncome from financial instruments at amortised cost nterest	60 55 0 0 4 62 62	66 64 1 1 0 64 64	(7) (9) (1) (1) 4 (3) (3)
ncome from financial instruments at FV L Fair value gains Accrued differentials on derivative financial instruments at FV L ncome from financial liabilities at FV L	10 9 1 2	8 3 5 11	2 6 (4) (9)
ncome from financial instruments - cash flow hedges Realised gains Other finance income Remuneration of own liquid funds of oste taliane nterest on bank accounts Finance income on discounted receivables Late payment interest mpairment of amounts due as late payment interest Other income	6 6 35 15 9 2 30 (29) 8	0 0 10 1 4 2 23 (22) 2	6 6 25 14 5 (0) 8 (7) 6
Foreign exchange gains	8	11	(3)
Total	181	169	12

For the purposes of reconciliation with the statement of cash flows, in 2023 finance income after both realised gains, foreign exchange gains and dividends, amounted to €169 million (€157 million in 2022)

Finance income increased by €12 million compared to the previous year, mainly due to the remuneration accrued on postal current accounts in the name of oste taliane as a result of the rise in the interest rate curve (€14 million)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Finance costs

tab. C11.2 - Finance costs

Description (€m)	FY 2023	FY 2022	Changes
Finance costs on financial liabilities on bonds on due to financial institutions on lease payables from derivative financial instruments	38 5 6 28 0	33 4 4 24 1	5 1 2 5 (1)
undry costs on financial assets Realised losses on financial instruments at FVOC Losses from valuation on financial instruments at FV L	4 3 0	18 - 18	(15) 3 (18)
xpenses from financial liabilities at FV L	5	-
Finance costs on provisions for employee termination benefits and pension plans	26	16	10
Finance costs on provisions for risks	4	(0)	5
nterest expense on own liquid funds	-	1	(1)
Other finance costs	34	50	(16)
Foreign exchange losses	8	9	(1)
Total	119	126	(7)

For the purposes of reconciliation with the statement of cash flows, in 2023 finance costs after foreign exchange losses amounted to €110 million (€118 million in 2022)

C12 - INCOME TAX EXPENSE (€794 million)

tab. C12 - Income tax expense

Description		FY 2023				FY 2022
(€m)	IRES	IRAP	Other	Total	IRES	IRAP	Other	Total	Changes
Current tax expense	597	148	2	746	408	111	1	520	226
Deferred tax assets	(3)	1	-	(2)	43	8	-	52	(54)
Deferred tax liabilities	43	7	-	50	222	56	-	278	(228)
Total	637	156	2	794	672	176	1	850	(56)

Below is the reconciliation of the arent Company's theoretical R tax rate and the effective tax rate of 29 11%:

tab. C12.1 - Reconciliation between theoretical and effective IRES rate

Description	FY 2023		FY 2022
(€m)	Tax	Impact %	Tax	Impact %
rofit before tax	2,727		2,433
heoretical tax charge	655	24 0%	584	24 0%
ffect of increases/(decreases) on theoretical tax charge
Realised gains on investments	(25)	-0 92%	-	0 00%
on-deductible out-of-period losses	8	0 30%	6	0 24%
et provisions for risks and charges and impairment of receivables	23	0 83%	99	4 06%
Realignment of tax bases and carrying amounts and taxation for previous years	(11)	-0 39%	(10)	-0 43%
atent Box and AC (aid for economic growth) tax effect - previous years	-	0 00%	(6)	-0 25%
Other differences	(11)	-0 40%	(0)	-0 02%
RA talian companies	155	5 69%	178	7 33%
Effective tax charge	794	29.11%	850	34.92%

With regard to the deductibility of losses related to the non-compensation of tax credits, and the provision for risks on tax credits (see also ote A10 - ax Credits Law no 77/2020), on 25 January 2024, the Agenzia delle ntrate's response was received to the request for a tax ruling presented by the arent Company; the response received provides indications that lend themselves to different interpretations and discussions are currently under way with the Agenzia delle ntrate to define the correct interpretation and the consequent impact on the various applicable cases Given the continuing situation of interpretative uncertainty, based on the provisions of FR C 23 - Uncertainty in ncome ax reatments, these items have been conservatively evaluated as non-deductible he possible positive tax effects that may emerge as a result of potential developments in the interpretation of the cases in question, following the conclusion of discussions with the Agenzia delle ntrate will be reflected in financial statements after 2023

Current tax expense

tab. C12.2 - Movements in current tax assets /(liabilities)

	Current tax 2023
Description	IRES IRAP		Foreign companies
(€m)	Assets/ (Liabilities)	Assets/ (Liabilities)	Assets/ (Liabilities)	Total
Balance at 1 January	70	12	(2)	80
ayments	131	63	3	197
Collection of AC 2013 credit	(6)	-	-	(6)
Claim for RA refund	-	(1)	-	(1)
Offsetting tax credits Law no 77/2020	340	39	-	379
rovisions to profit or loss	(597)	(148)	(2)	(746)
rovisions to equity	7	0	-	7
Other (*)	63	5	(0)	68
Balance at 31 December	8	(30)	(1)	(23)
of which: Current tax assets	156	10	-	167
Current tax liabilities	(149)	(40)	(1)	(189)

(*) his item mainly refers to receivables for withholding taxes

Under A 12 – ncome axes, R and RA credits are offset against the corresponding current tax liabilities, when applied by the same tax authority to the same taxable entity, which has a legally enforceable right to offset and intends to exercise this right

At 31 December 2023, current tax assets/(liabilities) include:

• the liability of €175 million determined by mainly R and RA provisions for the year 2023 net of R and RA advances paid and R and RA receivables from the previous year and receivables for withholding taxes;
• receivables referred to the arent Company of a residual €14 million related to the adhesion to the atent Box regime for the years 2017-2019 Following the submission of the relevant supplementary tax return, the R credit related to the Aid for conomic Growth (AC ) for the financial year 2013 of €6 million was collected in the year under review;
• assets for a total of €14 million related to a request for a tax ruling referring to the tax recognition of income components arising from the management of postal current account balances;
• the substitute tax credit of a residual €13 million relating to the redemption carried out by the arent Company during 2018, pursuant to art 15, paragraph 10 ter of Law Decree no 185 of 29 ovember 2008, of the higher values resulting from the notes to the consolidated financial statements at 31 December 2017, of goodwill and other intangible assets relating to the acquisition of the investment in F A nvestimenti rl;
• the substitute tax credit for a residual €7 million relating to the redemption carried out by the arent Company during 2022, pursuant to art 15, paragraphs 10 bis and 10 ter of Law Decree no 185 of 29 ovember 2008, of the goodwill arising from the acquisition of the exive Group and engi HK investments;
• assets for a residual €9 million recognised as a result of the responses received to two requests for a tax ruling filed with the Agenzia delle ntrate concerning the tax effects of application of FR 9 and 15 hese assets will become offsettable after the submission of the relevant supplementary tax returns

t should be noted that during the year, the companies oste ay p A and oste taliane p A recognised substitute tax credits of approximately €90 million and €6 million, respectively, in connection with the franking, pursuant to Article 15, paragraph 10-ter, of Law Decree no 185 of 29 ovember 2008, of the goodwill and other intangible assets identified in the urchase rice Allocation (" A") arising from the acquisition of the investments in L Holding, Agile and ourcesense he payment of the substitute tax will allow the franked amounts to be deducted for tax purposes as of the financial year 2025

Deferred tax assets and liabilities

tab. C12.3 - Deferred tax assets and liabilities

Description (€m)	Balance at 31 December 2023	Balance at 31 December 2022	Changes
Deferred tax assets	2,109	2,601	(492)
Deferred tax liabilities	(900)	(815)	(85)
Total	1,208	1,786	(578)

Movements in deferred tax assets and liabilities are shown below:

tab. C12.4 - Movements in deferred tax assets and liabilities

Description (€m)	FY 2023
Balance at 1 January	1,786
et income/(expense) recognised in profit or loss et income/(expense) recognised in equity Change in scope of consolidation and other	(48) (565) 34
Balance at 31 December	1,208

he following table shows movements in deferred tax assets and liabilities, broken down according to the events that generated such movements:

tab. C12.5 - Movements in deferred tax assets

Description (€m)	Property, plant and equipment and intangible assets	Financial assets and liabilities	Provision s to cover expected losses	Provision s for risks and charges	Insurance assets and liabilities	Other	Total
Balance at 1 January 2023	49	1,118	95	237	913	189	2,601
ncome/(expense) recognised in profit or loss ncome/(expense) recognised in equity	(1) 0	4 (525)	1 -	(19) (0)	3 (1)	14 (0)	2 (525)
Change in scope of consolidation	-	2	-	0	25	2	29
Balance at 31 December 2023	49	601	97	218	939	206	2,109

tab. C12.6 - Movements in deferred tax liabilities

Financial assets and liabilities	Intangible assets	Other	Total
674	63	78	815
47	(3)	7	50
30	-	(0)	30
-	5	0	5
			0
751	64	86	900
	-	-	0

Movements in deferred tax assets and liabilities recognised directly in equity during the year are as follows:

tab. C12.7 - Deferred tax assets and liabilities recognised in equity

Description (€m)	FY 2023
Fair value reserve for financial assets at FV OC Reserve for insurance contracts issued and outward reinsurance Cash flow hedge reserve for hedging instruments Actuarial gains /(losses) on employee termination benefits	(2,387) 1,755 68 (0)
Total	(565)

4.4 - OPERATING SEGMENTS

he identified operating segments, which are in line with the Group's strategic guidelines, are as follows:

• Mail, arcels and Distribution
• Financial ervices
• nsurance ervices
• ayments and Mobile

For a description of the operating segments as well as the types of products and/or services from which each reportable segment derives its revenue, please refer to the " ntroduction" section of this Annual Report

he result for each segment is based on operating profit/(loss) and gains/losses on intermediation

n order to provide an understanding of the energy business, included in the ayments and Mobile operating segment, according to an approach based on the net interest and other banking income, since the Group is not an energy producer, the values marked with an asterisk include a management reclassification that provides for the presentation of revenue related to the energy business net of costs related to the purchase of raw materials and the transport of electricity and gas herefore, values that deviate from the accounting data are specially marked and reconciled with the figures in the accounting statements

he following results, which are shown separately in accordance with the management view and with applicable accounting standards, should be read in light of the integration of the services offered by the distribution network within the businesses allocated to all four identified operating segments, also considering the obligation to carry out the Universal ostal ervice

Economic data by operating segment

FY 2023 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile		Adjustments and eliminations	Total
et external revenue from ordinary activities	3,746	5,229	1,567	1,447 (*)		-	11,989 (*)
et intersegment revenue from ordinary activities	5,245	866	(148)	264		(6,227)	0
Net operating revenue	8,991	6,095	1,419	1,710 (*)		(6,227)	11,989 (*)
Total costs	(9,033)	(5,232)	(59)	(1,271)	(*)		6,227 (9,368)	(*)
of which: Depreciation, amortisation and impairments	(844)	(0)	(2)	(36)		71	(811)
of which: Other non-cash expenses	(291)	(12)	(1)	(24)		-	(328)
Operating profit/(loss)	(43)	863	1,360	440		0	2,620
Finance income/(costs)	(41)	(1)	102	2		-	62
( mpairment losses)/reversals of impairment losses on financial assets	25	0	(0)	(0)		-	25
rofit/(Loss) on investments accounted for using the equity method	2	18	-	-		-	20
ntersegment finance income/(costs)	8	13	(51)	30		0	-
ncome tax expense	2	(246)	(417)	(134)		-	(794)
Net profit/(loss) for the year	(46)	647	994	338		0	1,933

FY 2022 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile		Adjustments and eliminations	Total
et external revenue from ordinary activities	3,651	4,939	1,650	1,134 (*)		-	11,374 (*)
et intersegment revenue from ordinary activities	4,862	820	(148)	264		(5,798)	0
Net operating revenue	8,512	5,759	1,502	1,398 (*)		(5,798)	11,374 (*)
Total costs	(8,838)	(4,872)	(48)	(1,019)	(*)	5,798	(8,978)	(*)
of which: Depreciation, amortisation and impairments	(805)	(0)	(3)	(23)		63	(769)
of which: Other non-cash expenses	(498)	21	(1)	(7)		-	(486)
Operating profit/(loss)	(326)	887	1,455	379		(0)	2,396
Finance income/(costs)	(31)	(13)	87	(0)		-	43
( mpairment losses)/reversals of impairment losses on financial assets	1	0	(0)	(0)		-	0
rofit/(Loss) on investments accounted for using the equity method	1	(7)	-	-		-	(6)
ntersegment finance income/(costs)	46	(2)	(45)	1		0	0
ncome tax expense	(52)	(243)	(445)	(110)		-	(850)
Net profit/(loss) for the year	(361)	622	1,051	270		0	1,583

Below is the reconciliation between the accounting figure and the management figure for the year under review and the comparative figure, reclassified to reflect the new exposure:

		FY 2023		FY 2022
Description (€m)		Payments and Mobile	Poste Italiane	Payments and Mobile	Poste Italiane
	Accounting figure	1,586	12,128	1,147	11,386
et external revenue from ordinary activities	Reclassification	(140)	(140)	(12)	(12)
	Management figure	1,447	11,989	1,134	11,374
	Accounting figure	275		264
et intersegment revenue from ordinary activities	Reclassification	(11)		0
	Management figure	264		264
	Accounting figure	1,861	12,128	1,410	11,386
Net operating revenue	Reclassification	(150)	(140)	(12)	(12)
	Management figure	1,710	11,989	1,398	11,374
	Accounting figure	1,421	9,508	1,031	8,990
Total costs	Reclassification	(150)	(140)	(12)	(12)
	Management figure	1,271	9,368	1,018	8,978

Statement of financial position data by operating segment

31 December 2023 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile	Adjustments and eliminations	Total
Assets	13,223	98,450	164,024	12,712	(17,633)	270,777
on-current assets	9,934	73,325	144,516	737	(3,698)	224,814
Current assets	3,289	25,125	19,508	11,975	(13,936)	45,963
on-current assets and disposal groups held for sale	-	-	50	-	-	50
Liabilities	10,340	95,640	157,634	11,269	(14,496)	260,388
on-current liabilities	4,125	10,014	156,402	85	(669)	169,958
Current liabilities	6,215	85,626	1,232	11,185	(13,827)	90,430
Other information
Capital expenditure	814	0	6	25	-	845
nvestments accounted for using the equity method	27	267	-	-	-	294

31 December 2022 (€m)	Mail, Parcels and Distribution	Financial Services	Insurance Services	Payments and Mobile	Adjustments and eliminations	Total
Assets	12,902	104,744	148,943	11,743	(16,258)	262,074
on-current assets	9,701	72,202	132,982	742	(3,699)	211,928
Current assets	3,201	32,542	15,961	11,001	(12,559)	50,146
on-current assets and disposal groups held for sale	-	-	-	-	-	-
Liabilities	10,393	103,406	143,186	10,332	(13,121)	254,195
on-current liabilities	4,623	10,339	142,163	83	(560)	156,647
Current liabilities	5,770	93,067	1,023	10,249	(12,560)	97,548
Other information
Capital expenditure	788	0	0	23	-	810
nvestments accounted for using the equity method	4	262	-	-	-	267

Disclosure about geographical segments, based on the geographical areas in which the various Group companies are based or the location of its customers, is of no material significance At 31 December 2023, the entities consolidated on a line-by-line basis are mainly based in taly and, on a residual and insignificant basis in China and the United Kingdom243F ²⁴⁴; customers are mainly located in taly: revenue from foreign customers does not account for a significant percentage of total revenue Assets include those deployed by the segment in the course of ordinary business activities and those that could be allocated to it for the performance of such activities

²⁴⁴ Total net revenue from ordinary operations by third parties recognised by the fully consolidated companies based in China and the United Kingdom amounted to €149 million, while EBIT and net trading income amounted to €11 million.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

4.5 – RELATED PARTY TRANSACTIONS

mpact of related party transactions on the financial position and profit or loss

he impact of related party transactions on the financial position and profit or loss is shown below

Impact of related party transactions on the financial position at 31 December 2023

	Balance at 31.12.2023
Description (€m)	Financ ial assets	Trade receivab les	Other assets Other receivab les	Cash and cash equivale nts	Financ ial liabiliti es	Trade payabl es	Other liabiliti es
Subsidiaries
Address oftware rl	-	0	-	-	0	1	0
Kipoint pA	-	1	0	-	2	2	0
ndabox	-	0	-	-	0	0	0
Associates
Anima Holding Group	-	0	-	-	-	7	-
talia Camp rl	-	1	-	-	-	0	-
Financit pA	-	3	-	-	-	17	-
urizon Capital Real Asset GR	-	-	-	-	-	0	-
sennder talia rl	-	1	-	-	-	36	(0)
Cronos Vita Assicurazioni pA	-	0	-	-	-	-	-
Related parties external to the Group
M F	8,937	370	19	873	5,376	4	1
Cassa Depositi e restiti Group	2,913	253	1	-	0	24	-
nel Group	-	27	-	-	-	3	0
ni Group	-	5	-	-	-	3	-
quitalia Group	-	1	-	-	-	-	-
AC Group	-	0	-	-	-	-	-
Leonardo Group	-	0	-	-	-	11	-
Montepaschi Group	224	2	-	0	351	(0)	-
Other related parties external to the Group	20	50	2	-	4	4	88
rovision for doubtful debts due from related parties external to the Group	(27)	(32)	(6)	(0)	-	-	-
Total	12,06 6	681	17	874	5,734	113	90

At 31 December 2023, total provisions for risks and charges made to cover probable liabilities arising from transactions with related parties external to the Group attributable mainly to trading relations amounted to €59 million (€67 million at 31 December 2022)

Impact of related party transactions on the financial position at 31 December 2022

	Balance at 31.12.2022
Name	Financ ial assets	Trade receivab les	Other assets Other receivab les	Cash and cash equivale nts	Financ ial liabiliti es	Trade payabl es	Other liabiliti es

Subsidiaries

2023 Annual Report
Poste Italiane Group			oste taliane's Financial tatements at 31 December 2023
Address oftware rl	-	0	-	-	0	1	-
Kipoint pA	-	1	0	-	1	2	0
ndabox	-	0	-	-	0	0	0
Associates
Anima Holding Group	-	0	-	-	-	7	-
talia Camp rl	-	0	-	-	-	(0)	-
elma- apienza carl	-	(0)	-	-	-	-	-
Financit pA	-	3	-	-	-	16	-
urizon Capital Real Asset GR	-	-	-	-	-	1	-
Related parties external to the Group
M F	11,90 7	384	17	1,991	4,176	4	1
Cassa Depositi e restiti Group	3,388	26	-	-	0	16	-
nel Group	-	23	-	-	-	0	-
ni Group	-	5	-	-	-	7	-
quitalia Group	-	0	-	-	-	(0)	-
AC Group	-	0	-	-	-	-	-
Leonardo Group	-	1	-	-	-	15	-
Montepaschi Group	276	1	-	0	397	(0)	-
Other related parties external to the Group	20	21	1	-	4	4	68
rovision for doubtful debts due from related parties external to the Group	(27)	(31)	(6)	(0)	-	-	-
Total	15,56 4	435	12	1,991	4,578	72	69

At 31 December 2023, net provisions for risks and charges used to cover probable liabilities arising from transactions with related parties external to the Group primarily attributable to trading relations amounted to about €0 1 million (€0 7 million at 31 December 2022)

2023 Annual Report

Impact of related party transactions on profit or loss in FY 2023

	Balance at 31.12.2023
	Revenue Costs
						Capital expenditure					Current expenses
Description (€m)	Reve nue and inco me from Mail, Parc els and other	Reve nue from Paym ents and Mobil e	Reve nue from Fina ncial Servi ces	Net reven ue from insur ance servi ces	Fina nce inco me	Prope rty, plant and equip ment	Intan gible asset s	Cost of goo ds and servi ces	Perso nnel expen ses	Other opera ting costs	Expe nses from finan cial activi ties	Impairme nt losses/(re versals of impairme nt losses) on debt instrumen ts, receivable s and other assets	Fina nce cost s
Subsidiaries
Address oftware rl	0	-	-	-	-	-	-	1	(0)	-	-	-	-
Kipoint pA	1	-	-	-	-	-	-	3	(0)	-	-	-	0
Associates
Anima Holding Group	2	-	-	-	-	-	-	8	-	-	-	-	-
ndabox	0	-	-	-	-			0	-	-	-	-	-
talia Camp rl	-	-	-	-	-			0	(0)	-	-	-	-
Other DA Group associates	0	-	-	-	(0)	-	-	-	-	-	-	-	-
Financit pA	30	-	-	-	-	-	-	-	(0)	-	-	-	-
sennder talia rl	0	-	-	-	-	-	-	122	(0)	-	-	-	0
Cronos Vita Assicurazioni pA Related parties external to the Group	0	-	-	-	-	-	-	-	(0)	-	-	-	-
M F	817	46	503	-	15	-	-	1	-	1	-	(0)	0
Cassa Depositi e restiti Group	19	3	1,813	18	-	8	2	69	0	0	-	(0)	0
nel Group	37	-	0	-	-	0	-	18	-	-	-	-	-
ni Group	22	-	0	-	-	0	-	42	-	-	-	-	-
quitalia Group	2	-	-	-	-	-	-	-	-	-	-	-	-
AC Group	0	-	-	-	-	-	-	-	-	-	-	-	-
Leonardo Group	0	-	-	-	-	-	3	24	-	0	-	-	-
Montepaschi Group	17	-	1	-	-	-	-	0	-	0	7	-	0
Other related parties external to the Group	60	5	0	-	-	-	-	20	74	2	5	0	0
Total	1,007	54	2,317	18	15	8	6	308	74	3	12	(0)	1

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Impact of related party transactions on profit or loss in FY 2022

							Balance at 31.12.2022
			Revenue Costs
							Capital expenditure		Current expenses
Name	Revenue and income from Mail, Parcels and other	Reven ue from Paym ents and Mobil e	Reve nue from Finan cial Servi ces	Net revenu e from insura nce service s	Finan ce inco me	Prop erty, plant and equip ment	Intangi ble assets	Cos t of goo ds and ser vice s	Per son nel exp ens es	Ot he r op era tin g co sts	Expen ses from financ ial activiti es	Impairment losses/(rev ersals of impairment losses) on debt instrument s, receivables and other assets	Finan ce costs
Subsidiaries
Address oftware rl	-	-	-	-	-	-	-	1	-	-	-	-	-
Kipoint pA	0	-	-	-	-	-	-	2	(0)	-	-	-	(0)
Associates
Anima Holding
Group Financit pA	2 40	- -	- -	- -	- -	- -	- -	29 -	- (0)	- -	- -	- -	- -
urizon Capital Real Asset GR	-	-	-	-	-	-	-	2	-	-	-	-	-
Related parties external to the Group
M F	730	48	385	-	1	0	-	1	-	3	3	1	1
Cassa Depositi e restiti Group	16	0	1,665	16	-	9	3	48	0	0	-	0	1
nel Group	41	-	1	0	-	-	0	1	-	0	-	0	-
ni Group	10	-	1	-	-	0	-	41	-	0	-	-	-
quitalia Group	1	-	-	-	-	-	-	-	-	-	-	-	-
AC Group	1	-	-	-	-	-	-	-	-	-	-	-	-
Leonardo Group	1	-	-	-	-	0	2	25	-	-	-	-	-
Montepaschi Group Other related parties external to the Group	16 35	- 2	1 0	- -	- -	- -	- -	0 16	- 71	- 1	1 -	- -	0 0
Total	893	51	2,052	16	1	9	6	167	71	5	4	1	2

he tables also show existing relations with subsidiaries that, due to their insignificance, are valued at equity and not consolidated on a line-by-line basis

he nature of the arent Company's principal related party transactions external to the Group is summarised below in order of relevance:

• Amounts received from the M F relate primarily to payment for carrying out the U O, the management of postal current accounts, as payment for delegated services, the franking of mail on credit, and for the integrated notification service
• Amounts received from CD pA primarily relate to payment for the collection of postal savings deposits
• Amounts received from the nel Group primarily relate to payment for bulk mail shipments, unfranked mail he costs incurred primarily relate to the supply of gas and electricity
• Amounts received from the Group primarily regard payment for mail shipments he costs incurred relate to the supply of gas and of fuel for motorcycles and vehicles
• urchases from the Leonardo Group primarily relate to the supply, by Leonardo pA, of equipment, maintenance and technical assistance for mechanised sorting equipment, and systems and assistance regarding the creation of document storage facilities, specialist consulting services and software maintenance, and the supply of software licences and of hardware

• Amounts received from the Monte dei aschi di iena group primarily regard payment for mail shipments

Related party transactions have been carried out on terms equivalent to those prevailing in arm's length transactions between independent parties

mpact of related party transactions or positions

he impact of related party transactions on the financial position, profit or loss and cash flows is shown in the following table:

Impact of related party transactions

Description (€m)	Total in financial statements	Total related parties	Impact (%)	Total in financial statements	Total related parties	Impact (%)
		Balance at 31.12.2023			Balance at 31.12.2022
Financial position
Financial assets	237,159	12,066	5 1	226,140	15,564	6 9
rade receivables	2,407	681	28 3	2,182	435	19 9
Other receivables and assets	5,135	17	0 3	5,105	12	0 2
Cash and cash equivalents	4,211	874	20 8	4,983	1,991	40 0
rovisions for risks and charges	1,336	59	4 4	1,355	67	5 0
Financial liabilities	95,393	5,734	6 0	103,644	4,578	4 4
rade payables	2,252	113	5 0	2,234	72	3 2
Other liabilities	4,343	90	2 1	4,003	69	1 7
		Balance at 31.12.2023			Balance at 31.12.2022
Profit or loss
Revenue from Mail, arcels & other	3,746	1,007	26 9	3,651	893	24 5
et revenue from Financial ervices	5,229	2,305	44 1	4,938	2,048	41 5
et revenue from insurance services	1,567	18	1 2	1,650	16	1 0
Revenue from ayments and Mobile services	1,586	54	3 4	1,147	51	4 4
Cost of goods and services	3,237	308	9 5	2,827	167	5 9
ersonnel expenses	5,170	74	1 4	4,823	71	1 5
Other operating costs	275	3	1 2	508	5	1 0
Finance costs	119	1	0 5	126	2	1 6
Finance income	181	15	8 1	169	1	0 6
Cash flows
et cash flow from /(for) operating activities	1,414	4,420	0	180	1,981	1
et cash flow from /(for) investing activities	(994)	14	n a	(1,606)	(18)	0
et cash flow from/(for) financing activities and shareholder transactions	(1,192)	(564)	0	(1,549)	(512)	n a

Key management personnel

Key management personnel consist of Directors, members of the Board of tatutory Auditors and the upervisory Board, managers at the first organisational level of the arent Company and oste taliane's manager responsible for financial reporting he related remuneration, gross of expenses and social security contributions, of such key management personnel as defined above is as follows:

Remuneration of key management personnel

Description (€k)	Balance at 31.12.2023	Balance at 31.12.2022

2023 Annual Report Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023
Remuneration to be paid in short/medium term	14,345	13,164
ost-employment benefits	580	571
Other benefits to be paid in longer term	(787)	1,871
ermination benefits	-	-
hare-based payments	4,936	2,469
Total	19,074	18,075

Remuneration and expenses of Statutory Auditors

Description (€k)	Balance at 31.12.2023	Balance at 31.12.2022
Remuneration xpenses	1,439 77	1,275 71
Total	1,516	1,346

he remuneration paid to members of the arent Company's upervisory Board for 2023 amounts to approximately €96 thousand n determining the remuneration, the amounts paid to managers of oste taliane who are members of the upervisory Board is not taken into account, as this remuneration is passed on to the employer

o loans were granted to key management personnel during the period and, at 31 December 2023, Group companies do not report receivables in respect of loans granted to key management personnel

ransactions with personnel pensions funds

he arent Company and the subsidiaries that apply the ational Collective Labour Agreement are members of the Fondoposte ension Fund, the national supplementary pension fund for oste taliane personnel, established on 31 July 2002 as a non-profit entity he Fund's officers and boards are the General Meeting of delegates, the Board of Directors, the Chairman and Deputy Chairman of the Board of Directors and Board of tatutory Auditors Representation of members on the above boards is shared equally between the companies and the workers that are members of the Fund he participation of members in the running of the Fund is guaranteed by the fact that they directly elect the delegates to send to the hareholders' Meeting

5. POSTE ITALIANE SPA - FINANCIAL STATEMENTS AT 31 DECEMBER 2023

5.1 FINANCIAL STATEMENTS

A M OF F A C AL O O

ASSETS		31 December	of which related	31 December	of which related
(figures in €)	Notes	2023	parties	2022	parties
Non-current assets
Property, plant and equipment	[A1]	2,320,675,265	-	2,203,281,482	-
Investment property	[A2]	27,590,204	-	30,622,319	-
Intangible assets	[A3]	1,052,853,632	-	944,624,830	-
Right-of-use assets	[A4]	970,107,550	-	1,039,707,878	-
Investments	[A5]	3,694,633,104	3,694,633,104	3,676,236,144	3,676,236,144
Financial assets	[A6]	65,384,975,707	3,398,784,099	62,775,153,352	3,391,476,890
Trade receivables	[A8]	961,404	-	762,775	-
Deferred tax assets	[C11]	928,434,002	-	1,455,493,776	-
Other receivables and assets	[A9]	1,794,867,584	1,586,649	1,788,073,590	1,586,649
Tax credits Law no. 77/2020	[A10]	6,533,849,874	-	7,457,745,566	-
Total		82,708,948,326		81,371,701,712
Current assets
Inventories	[A7]	3,999,649	-	4,157,570	-
Trade receivables	[A8]	2,773,751,097	1,397,196,251	2,656,054,944	1,206,342,400
Current tax assets	[C11]	68,367,034	-	98,312,324	-
Other receivables and assets	[A9]	982,339,159	153,715,638	832,135,995	32,974,635
Tax credits Law no. 77/2020	[A10]	1,784,345,995	-	1,563,051,854	-
Financial assets	[A6]	15,886,658,882	9,244,322,718	21,421,328,172	12,095,426,518
Cash and deposits attributable to BancoPosta	[A11]	4,670,570,165	-	5,848,037,590	-
Cash and cash equivalents	[A12]	1,222,518,576	873,963,904	2,257,992,640	1,991,118,738
Total		27,392,550,557		34,681,071,089
TOTAL ASSETS		110,101,498,883		116,052,772,801
LIABILITIES AND EQUITY	Notes	31 December	of which related	31 December	of which related
		2023	parties	2022	parties
Equity
Share capital	[B1]	1,306,110,000	-	1,306,110,000	-
Treasury shares		(94,095,509)	-	(62,850,781)	-
Reserves	[B2]	1,549,302,533	-	162,829,069	-
Retained earnings / (Accumulated losses)		2,891,588,865	-	2,401,421,381	-
Total		5,652,905,889		3,807,509,669
Non-current liabilities
Provisions for risks and charges	[B4]	717,764,517	49,633,252	740,904,188	55,226,126
Employee termination benefits	[B5]	608,135,775	-	677,640,667	-
Financial liabilities	[B6]	9,788,656,363	245,808,233	10,600,138,427	231,168,307
Deferred tax liabilities	[C11]	272,210,100	-	231,802,483	-
Other liabilities	[B8]	1,924,980,483	451,887	1,907,044,515	889,202
Total		13,311,747,238		14,157,530,280
Current liabilities
Provisions for risks and charges	[B4]	510,520,473	9,512,415	515,658,933	12,097,961
Trade payables	[B7]	1,967,197,951	496,526,842	1,969,876,704	478,400,954
Current tax liabilities	[C11]	149,024,753	-	44,379,053	-
Other liabilities	[B8]	1,435,507,835	93,845,904	1,455,075,322	214,726,262
Financial liabilities	[B6]	87,074,594,744	17,849,916,136	94,102,742,840	15,345,654,065
Total		91,136,845,756		98,087,732,852

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

A M OF F A C AL O O (continued)

U L M ARY A M HOW G BA CO O A RFC A 31 12 2023

ASSETS	Notes	CAPITAL OUTSIDE	BANCOPOSTA RFC	ELIMINATIONS	TOTAL
(figures in euro)		THE RING-FENCE
Non-current assets
Property, plant and equipment		2,320,675,265	-	-	2,320,675,265
Investment property		27,590,204	-	-	27,590,204
Intangible assets		1,052,853,632	-	-	1,052,853,632
Right-of-use assets		970,107,550	-	-	970,107,550
Investments		3,694,633,104	-	-	3,694,633,104
Financial assets		1,000,663,519	64,384,312,188	-	65,384,975,707
Trade receivables		961,404	-	-	961,404
Deferred tax assets	[C11]	286,207,321	642,226,681	-	928,434,002
Other receivables and assets	[A9]	42,579,876	1,752,287,708	-	1,794,867,584
Tax credits Law no. 77/2020	[A10]	287,172,636	6,246,677,238		6,533,849,874
Total		9,683,444,511	73,025,503,815	-	82,708,948,326
Current assets
Inventories		3,999,649	-	-	3,999,649
Trade receivables	[A8]	1,767,744,995	1,006,006,102	-	2,773,751,097
Current tax assets		68,367,034	-	-	68,367,034
Other receivables and assets	[A9]	374,611,630	607,727,529	-	982,339,159
Tax credits Law no. 77/2020	[A10]	119,500,953	1,664,845,042		1,784,345,995
Financial assets		61,261,933	15,825,396,949	-	15,886,658,882
Cash and deposits attributable to BancoPosta	[A11]	-	4,670,570,165	-	4,670,570,165
Cash and cash equivalents	[A12]	288,017,917	934,500,659	-	1,222,518,576
Total		2,683,504,111	24,709,046,446	-	27,392,550,557

Intersegment relations net amount - 127,891,161 (127,891,161) -

TOTAL ASSETS	12,366,948,622	97,862,441,422	(127,891,161)	110,101,498,883

LIABILITIES AND EQUITY	Notes	CAPITAL OUTSIDE THE RING-FENCE	BANCOPOSTA RFC	ELIMINATIONS	TOTAL
Equity
Share capital		1,306,110,000	-	-	1,306,110,000
Treasury shares		(94,095,509)	-	-	(94,095,509)
Reserves	[B2]	726,326,961	822,975,572	-	1,549,302,533
Retained earnings / (Accumulated losses)		935,631,197	1,955,957,668	-	2,891,588,865
Total		2,873,972,649	2,778,933,240	-	5,652,905,889
Non-current liabilities
Provisions for risks and charges	[B4]	592,594,349	125,170,168	-	717,764,517
Employee termination benefits	[B5]	606,052,711	2,083,064	-	608,135,775
Financial liabilities		2,217,477,910	7,571,178,453	-	9,788,656,363
Deferred tax liabilities	[C11]	6,017,017	266,193,083	-	272,210,100
Other liabilities	[B8]	172,524,252	1,752,456,231	-	1,924,980,483
Total		3,594,666,239	9,717,080,999	-	13,311,747,238
Current liabilities
Provisions for risks and charges	[B4]	472,191,153	38,329,320	-	510,520,473
Trade payables	[B7]	1,834,303,151	132,894,800	-	1,967,197,951
Current tax liabilities		149,024,753	-	-	149,024,753
Other liabilities	[B8]	1,208,478,386	227,029,449	-	1,435,507,835
Financial liabilities		2,106,421,130	84,968,173,614	-	87,074,594,744
Total		5,770,418,573	85,366,427,183	-	91,136,845,756
Intersegment relations net amount		127,891,161	-	(127,891,161)	-
TOTAL LIABILITIES AND EQUITY		12,366,948,622	97,862,441,422	(127,891,161)	110,101,498,883

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

A M OF F A C AL O O (continued)

U L M ARY A M HOW G BA CO O A RFC A 31 12 2022

(figures in euro)	Notes	CAPITAL OUTSIDE	BANCOPOSTA RFC	ELIMINATIONS	TOTAL
		THE RING-FENCE
Non-current assets Property, plant and equipment		2,203,281,482	-	-	2,203,281,482
Investment property		30,622,319	-	-	30,622,319
Intangible assets		944,624,830	-	-	944,624,830
Right-of-use assets		1,039,707,878	-	-	1,039,707,878
Investments		3,676,236,144	-	-	3,676,236,144
Financial assets		874,904,811	61,900,248,541	-	62,775,153,352
Trade receivables		762,775	-	-	762,775
Deferred tax assets	[C11]	298,182,186	1,157,311,590	-	1,455,493,776
Other receivables and assets	[A9]	50,180,229	1,737,893,361	-	1,788,073,590
Tax credits Law no. 77/2020	[A10]	330,431,856	7,127,313,710		7,457,745,566
Total		9,448,934,510	71,922,767,202	-	81,371,701,712
Current assets
Inventories Trade receivables	[A8]	4,157,570 1,836,768,708	- 819,286,236	- -	4,157,570 2,656,054,944
Current tax assets		98,312,324	-	-	98,312,324
Other receivables and assets	[A9]	259,503,121	572,632,874	-	832,135,995
Tax credits Law no. 77/2020	[A10]	89,847,114	1,473,204,740		1,563,051,854
Financial assets		29,409,273	21,391,918,899	-	21,421,328,172
Cash and deposits attributable to BancoPosta	[A11]	-	5,848,037,590	-	5,848,037,590
Cash and cash equivalents	[A12]	241,439,753	2,016,552,887	-	2,257,992,640
Total		2,559,437,863	32,121,633,226	-	34,681,071,089
Intersegment relations net amount		-	129,677,856	(129,677,856)	-
TOTAL ASSETS		12,008,372,373	104,174,078,284	(129,677,856)	116,052,772,801
LIABILITIES AND EQUITY	Notes	CAPITAL OUTSIDE THE RING-FENCE	BANCOPOSTA RFC	ELIMINATIONS	TOTAL
Equity
Share capital		1,306,110,000	-	-	1,306,110,000
Treasury shares		(62,850,781)	-	-	(62,850,781)
Reserves	[B2]	822,795,833	(659,966,764)	-	162,829,069
Retained earnings / (Accumulated losses)		427,374,281	1,974,047,100	-	2,401,421,381
Total		2,493,429,333	1,314,080,336	-	3,807,509,669
Non-current liabilities
Provisions for risks and charges Employee termination benefits	[B4] [B5]	595,887,291 675,658,094	145,016,897 1,982,573	- -	740,904,188 677,640,667
Financial liabilities		2,668,161,530	7,931,976,897	-	10,600,138,427
Deferred tax liabilities	[C11]	6,227,317	225,575,166	-	231,802,483
Other liabilities	[B8]	168,859,648	1,738,184,867	-	1,907,044,515
Total		4,114,793,880	10,042,736,400	-	14,157,530,280
Current liabilities
Provisions for risks and charges	[B4]	472,615,588	43,043,345	-	515,658,933
Trade payables	[B7]	1,788,311,580	181,565,124	-	1,969,876,704
Current tax liabilities		44,379,053	-	-	44,379,053
Other liabilities Financial liabilities	[B8]	1,374,614,838 1,590,550,245	80,460,484 92,512,192,595	- -	1,455,075,322 94,102,742,840
Total		5,270,471,304	92,817,261,548	-	98,087,732,852

TOTAL LIABILITIES AND EQUITY 12,008,372,373 104,174,078,284 (129,677,856) 116,052,772,801

A M OF ROF OR LO

(figures in €)	Notes		FY 2023 of which related parties		FY 2022 of which related parties
Revenue from sales and services	[C1]	9,880,028,944	4,813,933,966	8,903,676,705	4,285,273,955
Other income from financial activities	[C2]	271,362,769	-	427,964,847	-
Other operating income	[C3]	1,003,329,454	943,291,727	721,244,219	667,154,668
Total revenue		11,154,721,167		10,052,885,771
Cost of goods and services	[C4]	2,640,542,432	1,539,149,738	2,497,560,589	1,414,663,808
Expenses from financial activities	[C2]	633,159,282	74,160,132	215,134,855	32,681,434
Personnel expenses	[C5]	5,347,874,172	68,488,941	4,986,728,183	65,312,252
Depreciation, amortisation and impairments	[C6]	773,454,752	6,107,896	743,981,131	4,914,188
Capitalised costs and expenses		(41,069,643)	-	(36,895,738)	-
Other operating costs	[C7]	222,661,084	7,783,651	473,146,063	7,525,172
of which non-recurring costs		-	-	320,000,000	-
Impairment losses/(reversals of impairment losses) on debt instruments, receivables and other assets	[C8]	49,635,264	413,925	97,051,092	950,386
Operating profit/(loss)		1,528,463,824		1,076,179,596
Finance costs	[C9]	110,852,266	38,744,067	71,125,774	4,674,892
Finance income	[C9]	175,931,649	148,356,685	94,605,058	77,618,762
Impairment losses/(reversals of impairment losses) on financial assets	[C10]	(25,116,485)	(54,241)	(598,953)	(48,335)
Profit/(Loss) before tax		1,618,659,692		1,100,257,833
Income tax expense	[C11]	229,154,284	-	253,145,095	-
PROFIT FOR THE YEAR		1,389,505,408		847,112,738

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

A M OF COM R H V COM

(figures in €)	Notes	FY 2023	FY 2022
Net profit/(loss) for the year		1,389,505,408	847,112,738
Items to be reclassified in the Statement of profit or loss for the year
FVTOCI debt instruments
Increase/(decrease) in fair value during the year		1,944,160,743	(4,405,691,981)
Transfers to profit or loss from realisation	[tab. B2]	222,536,576	(150,548,691)
Increase/(decrease) for expected losses	[tab. B2]	2,626,727	4,153,828
Cash flow hedges
Increase/(decrease) in fair value during the year	[tab. B2]	80,032,594	278,515,402
Transfers to profit or loss	[tab. B2]	(317,798,819)	(408,797,835)
Taxation of items recognised directly in, or transferred from, equity to be reclassified in the Statement of profit or loss for the year		(548,751,276)	1,334,512,522
Items not to be reclassified in the Statement of profit or loss for the year
FVOCI equity instruments
Increase/(decrease) in fair value during the year		(3,906,456)	(71,808,237)
Transfers to other equity components		-	-
Actuarial gains/(losses) on employee termination benefits	[tab. B5]	(8,262,869)	119,481,198
Taxation of items recognised directly in, or transferred from, equity not to be reclassified in the Statement of profit or loss for the year		2,029,966	(32,308,009)
Total other comprehensive income		1,372,667,186	(3,332,491,803)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		2,762,172,594	(2,485,379,065)

A M OF CHA G QU Y

						Equity
						Reserves
(figures in €)	Share capital	Treasury shares	Legal reserve	BancoPosta RFC reserve	Equity instruments - perpetual hybrid bonds	Fair value reserve	Cash flow hedge reserve	Incentive plans reserve	Merger surplus (deficit) reserve	Retained earnings / (Accumulated losses)	Total
Balance at 1 January 2022	1,306,110,000	(39,809,472)	299,234,320	1,210,000,000	800,000,000	1,191,311,140	(33,386,960)	13,479,038	5,128,817	2,282,303,950	7,034,370,833
Total comprehensive income for the year	-	-	-	-	-	(3,325,640,562)	(93,162,731)	-	-	933,424,228	(2,485,379,065)
Balance dividends paid on FY 2021 profits	-	-	-	-	-	-	-	-	-	(525,922,474)	(525,922,474)
Interim dividend on FY 2022 profits	-	-	-	-	-	-	-	-	-	(272,700,542)	(272,700,542)
Purchase of treasury shares	-	(25,300,205)	-	-	-	-	-	-	-	(1,923)	(25,302,128)
Coupons paid to holders of perpetual hybrid bonds	-	-	-	-	-	-	-	-	-	(15,960,000)	(15,960,000)
Merger contribution	-	-	-	-	-	(239,911,300)	-	-	330,001,682	-	90,090,382
Incentive plans	-	2,258,896	-	-	-	-	-	5,775,625	-	273,137	8,307,658
Other movements	-	-	-	-	-	-	-	-	-	5,005	5,005
Balance at 31 December 2022	1,306,110,000	(62,850,781)	299,234,320	1,210,000,000	800,000,000	(2,374,240,722)	(126,549,691)	19,254,663	335,130,499	2,401,421,381	3,807,509,669
of which attributable to BancoPosta RFC	-	-	-	1,210,000,000	350,000,000	(2,092,203,851)	(129,496,216)	1,733,303	-	1,974,047,100	1,314,080,336
Total comprehensive income for the year	-	-	-	-	-	1,549,043,156	(170,096,190)	-	-	1,383,225,628 (*)	2,762,172,594
Balance dividends paid on FY 2022 profits	-	-	-	-	-	-	-	-	-	(569,991,049)	(569,991,049)
Interim dividend on FY 2023 profits	-	-	-	-	-	-	-	-	-	(307,017,906)	(307,017,906)
Purchase of treasury shares	-	(33,984,898)	-	-	-	-	-	-	-	(2,583)	(33,987,481)
Coupons paid to holders of perpetual hybrid bonds	-	-	-	-	-	-	-	-	-	(15,960,000)	(15,960,000)
Merger contribution	-	-	-	-	-	-	-	-	-	-	-
Incentive plans	-	2,740,170	-	-	-	-	-	7,526,498	-	(86,889)	10,179,779
Other movements	-	-	-	-	-	-	-	-	-	283	283
Balance at 31 December 2023	1,306,110,000	(94,095,509)	299,234,320	1,210,000,000	800,000,000	(825,197,566)	(296,645,881)	26,781,161	335,130,499	2,891,588,865	5,652,905,889

(*) his item includes profit for the period of €1,390 million and actuarial losses on provisions for employee termination benefits of €8 million, after the related current taxation

A M OF CA H FLOW

(€k)	Notes	FY 2023	FY 2022
Cash and cash equivalents at beginning of year		2,257,993	3,869,639
Profit/(Loss) before tax		1,618,660	1,100,258
Depreciation, amortisation and impairments	[tab. C6]	773,075	743,981
Net provisions for risks and charges	[tab. B4]	320,914	430,181
Use of provisions for risks and charges	[tab. B4]	(352,780)	(343,332)
Employee termination benefits paid	[tab. B5]	(102,684)	(114,332)
(Gains)/losses on disposals Impairment losses/(reversals of impairment losses) on financial assets	[tab. C7]	(93,410) (25,114)	(1,129) (597)
(Dividends)		(16,403)	(10,694)
Dividends received		16,403	10,694
(Finance income in form of interest)	[tab. C9.1]	(154,120)	(77,350)
Interest received		150,462	73,002
Interest expense and other finance costs	[tab. C9.2]	105,626	66,421
Interest paid		(54,190)	(31,706)
Losses and impairment losses/(reversals of impairment losses) on receivables	[tab. C8]	42,908	89,799
Income tax paid Other changes	[tab. C11.3]	(44,602) (1,780)	(360,660) (12,334)
Cash flow generated by operating activities before movements in working capital	[a]	2,182,965	1,562,202
Movements in working capital: (Increase)/decrease in Inventories	[A7]	158	6,735
(Increase)/decrease in Trade receivables		(160,456)	246,678
(Increase)/decrease in Other receivables and assets		263,097	409,366
Increase/(decrease) in Trade payables		(2,681)	(61,457)
Increase/(decrease) in Other liabilities		(16,369)	229,600
Change in tax credits Law no. 77/2020		(351,584)	10,613
Cash flow generated by/(used in) movements in working capital	[b]	(267,835)	841,535
Increase/(decrease) in Financial liabilities attributable to BancoPosta RFC		(8,983,074)	4,821,908
Net cash generated by/(used in) financial assets attributable to BancoPosta RFC		916,625	(5,180,205)
(Increase)/decrease in other financial assets attributable to BancoPosta RFC and tax credits
Law No. 77/2020		5,671,131	(2,176,925)
(Increase)/decrease in Cash and deposits attributable to BancoPosta (Income)/expense and other non-cash components from financial activities		1,177,468 153,099	1,810,487 383,864
Cash generated by/(used for) financial assets and liabilities attributable to BancoPosta RFC	[c]	(1,064,751)	(340,871)
Net cash flow from/(for) operating activities - of which related party transactions	[d]=[a+b+c]	850,379 4,970,379	2,062,866 2,766,191
Investing activities:
Property, plant and equipment	[tab. A1]	(324,890)	(286,809)
Investment property	[tab. A2]	(303)	(375)
Intangible assets	[tab. A3]	(455,251)	(463,536)
Investments		(19,973)	(1,373,120)
Other financial assets		(76,941)	(175,131)
Disposals:
Property, plant and equipment, investment property and assets held for sale Other financial assets		10,064 23,636	5,512 36,645
Mergers		-	975
Net cash flow from /(for) investing activities	[e]	(843,658)	(2,255,839)
- of which related party transactions		(43,500)	(1,095,880)
Proceeds from/(Repayments of) long-term borrowings Increase/(decrease) in short-term borrowings	[B6.5] [B6.5]	125,000 (235,201)	100,000 (673,750)
Dividends paid	[B3]	(877,009)	(798,623)
Sale/(purchase) of treasury shares		(33,985)	(25,300)
Equity instruments - perpetual hybrid bonds		(21,000)	(21,000)
Net cash flow from/(for) financing activities and shareholder transactions	[f]	(1,042,195)	(1,418,673)
- of which related party transactions		758,468	(416,770)
Net increase/(decrease) in cash	[g]=[d+e+f]	(1,035,474)	(1,611,646)
Cash and cash equivalents at end of year	[tab. A12]	1,222,519	2,257,993
Cash and cash equivalents at end of year	[tab. A12]	1,222,519	2,257,993
Restricted net cash and cash equivalents at end of year		(550,848)	(1,724,336)
Unrestricted net cash and cash equivalents at end of year		671,671	533,657

5.2 INFORMATION ON BANCOPOSTA RFC

As required by art 2, paragraphs 17-octies et seq of Law 10 of 26 February 2011, converting Law Decree 225 of 29 December 2010, in order to identify ring-fenced capital for the purposes of applying the Bank of taly's prudential requirements to Banco osta's operations and for the protection of creditors, at the hareholders' Meeting held on 14 April 2011 oste taliane pA's shareholder approved the creation of ring-fenced capital to be used exclusively in relation to Banco osta's operations (Banco osta Ring-fenced Capital or Banco osta RFC), as governed by residential Decree 144 of 14 March 2001, and established the assets and contractual rights to be included in the ring-fence as well as By-laws governing its organisation, management and control Banco osta RFC was provided originally with an initial reserve of €1 billion through the attribution of oste taliane pA's retained earnings he resolution of 14 April 2011 became effective on 2 May 2011, the date on which it was filed with the Companies' Register Following on from the Board of Directors' resolution of 25 January 2018 and the subsequent xtraordinary hareholders' Meeting of oste taliane pA's shareholders, on 27 eptember 2018, oste taliane injected €210 million of fresh capital into Banco osta RFC

n 2021, oste taliane pA placed a hybrid subordinated perpetual bond issue with a non-call period of 8 years aimed at institutional investors Following this issue, on 30 June 2021 and on 30 June 2023, there was an injection of capital into Banco osta RFC, via the granting of two perpetual subordinated loans of €350 million with an 8-year non-call period and €100 million with a 5-year non-call period, respectively, under terms and conditions that allow them to be counted as Additional ier 1 ("A 1") capital, designed to strengthen its leverage ratio

he separation of Banco osta from oste taliane pA is only partly comparable to other ring-fenced capital solutions ndeed, Banco osta is not expected to meet the requirements of articles 2447 bis et seq of the talian Civil Code or for other special purpose entities, in that it has not been established for a single specific business but rather, pursuant to residential Decree 144 of 14 March 2001, for several types of financial activities to be regularly carried out for an unlimited period of time For this reason, the above legislation does not impose the 10% limit on Banco osta's equity, waiving the provisions of the talian Civil Code unless expressly cited as applicable

ature of assets and contractual rights and authorisations

Banco osta's assets, contractual rights and authorisations pursuant to notarial deed were conferred on Banco osta RFC exclusively by oste taliane pA without third-party contributions Banco osta's operations consist of those listed in residential Decree 144 of 14 March 2001, as amended24F ²⁴⁵, with the exception of activities linked to card payments and payment services, carried out by the subsidiary, oste ay pA More details on this aspect are provided below:

• the collection of all forms of savings deposit from the public in accordance with art 11, para 1 of Legislative Decree no 385/1993 of 1 eptember 1993 - Consolidated Law on Banking ( esto Unico Bancario, or UB) - and all related and consequent activities;
• the collection of savings through postal securities and deposits;
• payment services, including the issuance, administration and sale of prepaid cards and other payment instruments pursuant to art 1, para 2, letter f) numbers 4) and 5), UB;
• foreign currency exchange services;
• promotion and arrangement of loans issued by approved banks and financial brokers;
• investment and related services pursuant to art 12, residential Decree 144/2001;
• debt collection services;
• professional gold trading, on own behalf or on behalf of third parties, in accordance with the requirements of Law 7 of 17 January 2000

²⁴⁵ As revised on the issuance of Law Decree 179 of 18 October 2012 converted into law with amendments by Law 221 of 17 December 2012.

All of the assets and rights arising out of various contracts, agreements and legal transactions related to the above activities have also been conferred on Banco osta RFC

Following the receipt of clearance from the Bank of taly, the hareholders' Meeting of oste taliane held on 29 May 2018 approved the proposed removal of the assets, liabilities and contractual rights attributable to the card payments and payment services business unit from the ring-fence that applies to Banco osta RFC On 1 October 2018, this business unit was transferred to the subsidiary oste ay pA, in assets earmarked for card payments and payment services, in order to enable the latter to operate as an lectronic Money nstitution ( M )245F ²⁴⁶ n addition, in order to complete the process of centralising e-money on the above-mentioned M , on 28 May 2021, oste taliane's xtraordinary hareholders' Meeting, after obtaining all the authorisations required by law, approved the removal of the restriction on the allocation of Banco osta RFC, assets and legal relations constituting the so-called "Debit Branch", with the deed of contribution in favour of ostepay pA taking effect from 1 October 2021

Banco osta RFC's operations

Banco osta RFC's operations consist of the investment of cash held in postal current accounts, in the name of Banco osta but subject to statutory restrictions, and the management of third parties' collections and remittances his latter activity includes the collection of postal savings ( ostal avings Books and nterest-bearing ostal Certificates), carried out on behalf of Cassa Depositi e restiti and the M F, and services delegated by ublic Administration entities hese transactions involve the use of cash advances from the talian reasury and the recognition of financial items awaiting settlement he specific agreement with the M F requires Banco osta to provide daily statements of all cash flows, with a delay of two bank working days with respect to the transaction date

n compliance with the 2007 Budget Law, from 2007 the Company is required to invest the funds raised from deposits paid into postal current accounts by private customers in urozone government securities246F ²⁴⁷ Funds deposited by ublic Administration entities are, instead, deposited with the Ministry of the conomy and Finance and earn a variable rate of return linked to a basket of government securities, in accordance with a specific agreement with the M F regarding treasury services, renewed on 19 May 2023 and covering the two-year period 2023-2024 n addition, under the agreement with the M F, renewed on 29 May 2023 for the three-year period 2023-2025, a percentage of the funds deriving from private customer deposits may be placed in a special "Buffer" account at the M F, with the objective of ensuring flexibility with

²⁴⁶ The business unit consists of assets and contractual rights linked to:

Own products: prepaid cards (card payments), debit cards, payment services, acquiring services, tax payments using forms F23/F24 and international money transfers (Moneygram) forming part of the operations carried out independently by the EMI. In particular, these products are issued by the EMI, which is responsible for their conception, development and management, whilst BancoPosta RFC acts as distributor of the products through the Group's physical distribution network.

Products handled under Service Contracts: payment products and services and money transfers carried out exclusively within the scope of BancoPosta RFC's operations, as they are "reserved to" the ring-fence by Presidential Decree 144/01. In particular, with the aim of leveraging the infrastructure of the hybrid EMI, BancoPosta has outsourced operations relating to payment products and services issued by BancoPosta, and distributed by BancoPosta through Poste Italiane's physical network, to the EMI under an outsourcing agreement between BancoPosta and the EMI.

²⁴⁷ Moreover, following the amendment of art. 1, paragraph 1097 of Law 296 of 27 December 2006, introduced by art. 1, paragraph 285 of the 2015 Stability Law (Law 190 of 23 December 2014), it became possible for BancoPosta RFC to invest up to 50% of its deposits in securities guaranteed by the Italian government. Lastly, with the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits pursuant to Law Decree no. 34/2020 (the so-called "Relaunch Decree") or other transferable tax credits pursuant to current legislation.

regard to investments in view of daily movements in amounts payable to current account holders hese deposits are remunerated at a variable rate equal to the uro hort erm Rate ( R)247F 248

Cost and revenue allocation and measurement of operations contracted out by Banco osta RFC

Given the fact that oste taliane is a single legal entity, the Company's general accounting system maintains its uniform characteristics and capabilities n this context, the general principles governing administrative and accounting aspects of Banco osta RFC are as follows:

• dentification of transactions in oste taliane pA's general ledgers relating to Banco osta's ring-fenced operations which are then extracted for recording in Banco osta's separate ledgers
• Allocation to Banco osta RFC of all relevant revenue and costs; in particular the services rendered by the different functions of oste taliane pA to Banco osta RFC, are exclusively recorded as payables in Banco osta's separate books, in special intersegment accounts only, and subsequently settled
• ettlement of all incoming and outgoing third party payments by oste taliane pA's Chief Financial Office
• Allocation of income taxes based on Banco osta RFC's separate report after adjusting for deferred taxation
• Reconciliation of Banco osta's separate books to oste taliane's general ledger

art V of Chapter 1 of the upervisory tandards in Bank of taly Circular 285/2013, addressing specific aspects relating to oste taliane in respect of Banco osta RFC's operations, govern the process of contracting out Banco osta's corporate functions to oste taliane, whilst the outsourcing of operations to entities external to oste taliane is covered by the regulations applicable to banks

n compliance with the Circular, the Regulation governing Banco osta RFC's contracting out and outsourcing process approved by the Board of Directors248F ²⁴⁹ makes provision for a distinction between control functions and essential or important functions and non-essential or important control functions

Banco osta RFC may therefore both outsource operating activities, entering into agreements with third parties, and contract out certain operating or control activities to oste taliane functions, agreeing " pecific Operating Guidelines" with the heads of the various functions he Operating Guidelines establish, among other things, the applicable levels of service and transfer prices and are effective following an authorisation process involving the relevant functions, the Chief xecutive Officer and, where required, the Company's Board of Directors he transfer prices set out in the Operating Guidelines are determined according to objective criteria that reflect the real contribution of the various management activities to Banco osta RFC's results he transfer prices paid, inclusive of commissions and any other form of remuneration due, are determined on the basis of market prices and tariffs for the same or similar services, identified, where possible, following a benchmarking process When the specifics and/or the particular nature of a service provided by one of the ssuer's functions do not allow the use of a comparable market price, a cost-based method is used, again with the support of benchmarking to ensure that the price charged is adequate for the service provided n such a case, an adequate markup, defined on the basis of appropriate analyses of comparable subjects, shall be applied he prices set in each Operating Guidelines can be reduced in the presence of operating losses of the activities outsourced or in case of penalties due to the failure to achieve pre-established service levels, as measured by specific performance indicators he Operating Guidelines, in force until 31 December 2025, are reviewed every two years

he following table includes a summary of the services provided to Banco osta RFC by the ssuer's functions, with a brief indication of how the transfer prices are determined

²⁴⁸ Rate calculated and published by the ECB using a new methodology consistent with ECB Regulation (EU) no. 1333/2014 of 26 November 2014 and based on uncollateralised fixed-rate overnight deposit facility transactions exceeding €1 million.

²⁴⁹ The Regulation was revised on 28 June 2023.

2023 Annual Report

Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

Function	Allocation key
Post Office Network	Percentage of net income generated by product/service category
Information Technology	Fixed component: recharge of costs based on direct and indirect drivers
	Variable component: determined with reference to the maintenance of operating performance
Back-office and Customer Care	Fees by professional role based on market benchmarks + recharge of external costs
	Market prices for similar services
Postal and logistics services	Prices for mail sent to customers and internal mail
Real Estate	Market prices with reference to floor space and maintenance costs
Legal Affairs	Fees by professional role based on market benchmarks + recharge of external costs
Administration, Finance and Control
Group Risk Governance and Security and Safety
Human Resources and Organisation
Anti-Money Laundering
Purchases
Group Strategic Marketing(*)
External Relations
Operational Continuity	Fees by professional role based on market benchmarks
Internal Auditing
Compliance
Essential or important functions functions	Control Functions

(*) Following corporate reorganisations, it became necessary to formalise new regulations concerning the contribution of the Group Strategic Marketing function.

he relevant transactions, profit or loss and statement of financial position amounts, generated by these relationships are only recorded in Banco osta RFC's eparate Report n oste taliane pA's comprehensive accounts intersegment transactions are on the other hand eliminated, and are not presented he accounting treatment adopted is similar to that provided for by the accounting standards regulating the preparation of the Group's consolidated financial statements

Obligations

oste taliane pA's liability, pursuant to art 2, paragraph 17-nonies of Law Decree 225 of 29 December 2010 converted into Law 10, to creditors of Bancoposta RFC is limited to the ring-fenced capital, represented by the assets and contractual rights originally allocated or arisen after the separation oste taliane's liability is, however, unlimited with respect to claims arising from actions in tort relating to the management of Banco osta or for transactions for which no indication was made that the obligation was taken specifically by Banco osta RFC

he Regulation approved at the xtraordinary hareholders' Meeting of oste taliane pA's shareholder on 14 April 2011 pA, and subsequently amended on 12 May 2020, provides that, where necessary, Banco osta RFC's equity shall be sufficient to ensure that it is able to comply with supervisory capital requirements and is aligned with the risk profile of its operations

eparate Report

Banco osta RFC's eparate Report is prepared in application of Bank of taly Circular 262 of 22 December 2005 - Banks' Financial Statements: Layouts and Preparation, as amended he application of these regulations, whilst in compliance with the same accounting standards adopted by oste taliane pA, requires the use of a different basis of presentation for certain components of profit or loss and the statement of financial position compared with the basis of presentation adopted for the statutory financial statements

n this regard, the following table shows a reconciliation of the components of Banco osta RFC's equity, as shown in the Company's statement of financial position and in the eparate Report249F 250

Reconciliation of separate equity	Separate Report item	110	130	140	180
Item in supplementary statement (€m)		Valuation reserves	Equity instruments	Reserves	Profit for the year
Reserves BancoPosta RFC reserve Equity instruments - perpetual hybrid bonds Fair value reserve	823 1,210 450 (544)	(839) - - (544)	450 - 450 -	1,212 1,210 - -	- - - -
Cash flow hedge reserve Incentive plans reserve Retained earnings / (Accumulated losses) Profits	(295) 2 1,956 1,958	(295) - (2) -	- - - -	- 2 1,358 1,358	- - 600 600
Cumulative actuarial gains/(losses) on defined benefit plans Total	(2) 2,779	(2) (841)	- 450	- 2,570	- 600
xclusively for the purposes of the presentation of the	eparate Report, the transactions between Banco osta RFC and
the Company's functions not included therein are reported represented, together with the positive and negative income components that generated them		n this document they are accurately and completely
Further regulatory aspects
ursuant to art 2, paragraph 17-undecies of Law Decree 225250F contractual rights included in Banco osta's ring-fenced capital shall be shown separately in the Company's statement of financial position", oste taliane BancoPosta RFC	251 of 29 December 2010, which states that "the assets and pA's statement of financial position includes a Supplementary statement showing
On 27 May 2014, the Bank of taly issued specific upervisory tandards for Banco osta RFC, which, in taking into account the entity's specific organisational and operational aspects, has established prudential requirements that are substantially in line with those applicable to banks system of internal controls and the requirements regarding capital adequacy and risk containment	hese include regulations covering the organisational structure and governance, the
Furthermore, Banco osta RFC's Regulation states that " n view of the absence of non-controlling interests in Banco osta RFC, on approval of oste taliane of the Board of Directors – vote on the appropriation of the Company's profit for the year, and in particular: the portion of Banco osta RFC, as shown in the related statement, taking account of its specific rules and, in particular, the need to comply with prudential supervisory capital requirements ( )"	pA's financial statements, the	hareholders' Meeting shall – on the recommendation
250 Actuarial gains and losses on defined benefit plans, which in the Company' s financial statements are accounted for in retained earnings, are accounted for in the valuation reserves in the Separate Report (Item 110 of Liabilities).
251 Converted into Law 10 of 26 February 2011.

Further regulatory aspects

²⁵⁰ Actuarial gains and losses on defined benefit plans, which in the Company' s financial statements are accounted for in retained earnings, are accounted for in the valuation reserves in the Separate Report (Item 110 of Liabilities).

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5.3 NOTES TO THE STATEMENT OF FINANCIAL POSITION

ASSETS

A1 - PROPERTY, PLANT AND EQUIPMENT (€2,321 million)

Movements in property, plant and equipment are as follows:

tab. A1 - Movements in property, plant and equipment

(€m)	Land	Properties used in operations	Plant and equipment	Industrial and commercial equipment	Leasehold improvements	Other assets	Assets under construction and advances	Total
Cost	75	3,124	2,287	348	688	1,877	108	8,507
Accumulated depreciation	-	(1,985)	(1,803)	(319)	(454)	(1,724)	-	(6,285)
Impairment losses	-	(16)	(1)	(1)	-	(1)	-	(19)
Balance at 1 January 2023	75	1,123	483	28	234	152	108	2,203
Changes during the year
Acquisitions	-	46	59	9	46	43	122	325
Reclassifications	-	35	25	-	13	5	(78)	-
Disposals	-	-	-	-	-	(1)	(1)	(2)
Depreciation	-	(32)	(54)	(9)	(47)	(63)	-	(205)
Total changes	-	49	30	-	12	(16)	43	118
Cost	75	3,205	2,367	356	745	1,906	151	8,805
Accumulated depreciation	-	(2,017)	(1,853)	(327)	(499)	(1,769)	-	(6,465)
Impairment losses	-	(16)	(1)	(1)	-	(1)	-	(19)
Balance at 31 December 2023	75	1,172	513	28	246	136	151	2,321

one of the above items is attributable to Banco osta RFC

At 31 December 2023, property, plant and equipment includes assets located on land held under concession or subconcession, which are to be handed over free of charge at the end of the concession term hese assets have a total carrying amount of €52 million

nvestments of €325 million in 2023 consists largely of:

• €46 million relating to extraordinary maintenance of ost Offices around the country (€27 million), personnel and management offices (€10 million) and mail and parcel sorting offices (€9 million);
• €59 million for plants, of which €33 million for the construction of plants related to buildings, €14 million for the construction and extraordinary maintenance of connectivity and video-surveillance systems, €8 million for the creation and extraordinary maintenance of systems for mail sorting and parcel processing at industrial facilities and €4 million for the installation of A Ms (automated teller machines);
• €46 million invested in the upgrade of plant (€20 million) and the structural part (€26 million) of properties held under lease;
• €43 million relating to "Other assets", including €33 million for the purchase of hardware for the upgrade of technological equipment at ost Offices and head offices, the strengthening of storage systems and €10 million for the purchase of furniture and fittings;
• €122 million for nvestments in progress, of which €93 million is for extraordinary maintenance works and infrastructural equipment of the sales and production network and €23 million for the purchase of hardware and other technological equipment that has not yet been incorporated into the production process

Reclassifications from property, plant and equipment under construction amounted to €78 million and refer mainly to the purchase cost of assets that became available and ready for use during the year; in particular, €65 million refer to the completion of extraordinary renovations of owned properties and improvements of leased properties and €5 million for the activation of hardware and other technological equipment

Within the framework of the olis roject - Home of Digital ervices, with reference to the two lines of action envisaged in the project, the investments for the financial year 2023 totalling €95 million are shown below:

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Polis Project - Investments

Lines of intervention	Properties used in operations	Plant and equipment	Leasehold improvements	Other assets	Assets under construction and advances	Total
One-stop shop	12	8	20	12	28	80
Spaces for Italy	2	3	-	-	10	15
Total	14	11	20	12	38	95

n detail, the investments are related:

• for €14 million to extraordinary maintenance of ost Offices around the country;
• for €11 million to the construction of plants related to buildings;
• for €20 million to investments in the upgrade of plant and the structure of properties held under lease;
• for €12 million to the purchase of hardware for the upgrade of technological equipment of ost Offices and head offices and the purchase of furniture and fittings;
• for €38 million to investments in progress, of which €33 million for extraordinary maintenance of both owned and leased premises and €5 million for the purchase of hardware

Lastly, it should be noted that during the year under review, investments of €31 million classified as "green", i e , aimed at reducing the impact that oste taliane has on the environment in which it operates, were made he main projects include the installation of photovoltaic systems and electricity columns, as well as energy efficiency measures on real estate

A2 - INVESTMENT PROPERTY (€28 million)

nvestment property primarily regards former service accommodation owned by oste taliane pA pursuant to Law 560 of 24 December 1993, and residential accommodation previously used by post office directors one of the above items is attributable to Banco osta RFC

tab. A2 - Movements in investment property

(€m)	FY 2023
Cost Accumulated depreciation Impairment losses	88 (57) -
Balance at 1 January	31
Changes during the year Acquisitions Disposals Depreciation	- (3) (1)
Total changes	(4)
Cost Accumulated depreciation	81 (53)
Balance at 31 December	28
Fair value at 31 December	66

he fair value of investment property at 31 December 2023 includes €54 million representing the sale price applicable to the arent Company's accommodation in accordance with Law 560 of 24 December 1993, while the remaining balance reflects market price estimates computed internally by the Company251F 252

Most of the properties included in this category are subject to lease agreements classifiable as operating leases, given that oste taliane pA retains substantially all the risks and rewards of ownership of the properties Under the relevant agreements, tenants usually have the right to break off the lease with six-month notice Given the resulting lack of certainty, the expected revenue flows from these leases are not referred to in these notes

²⁵² In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, service accommodation and other investment property qualify for Level 3.

A3 - INTANGIBLE ASSETS (€1,053 million)

he following table shows movements in intangible assets:

tab. A3 - Movements in intangible assets

(€m)	Industrial patents, intellectual property rights, concessions, licences, trademarks and similar rights	Concessions, licences, trademarks and similar rights	Assets under construction and advances	Goodwill	Total
Cost	4,514	2	256	33	4,805
Accumulated amortisation and impairments	(3,858)	(2)	-	-	(3,860)
Balance at 1 January 2023	656	-	256	33	945
Changes during the year
Acquisitions	232	-	223	-	455
Reclassifications	207	-	(207)	-	-
Disposals	-	-	(3)	-	(3)
Depreciation, amortisation and impairments	(344)	-	-	-	(344)
Total changes	95	-	13	-	108
Cost	4,952	2	270	33	5,257
Accumulated amortisation and impairments	(4,202)	(2)	-	-	(4,204)
Balance at 31 December 2023	750	-	270	33	1,053

one of the above items is attributable to Banco osta RFC

nvestments in ntangible assets during 2023 amounted to €455 million, including €41 million in internal software development activities and the related accessory expenses, primarily relating to personnel expenses (€39 million) Research and development costs, other than those incurred directly to produce identifiable software used, or intended for use, within the Company, are not capitalised

he increase in industrial patents and intellectual property rights, totalling €232 million, before amortisation for the year, relates primarily to the purchase and entry into service of new software programs following the purchase of software licences

he acquisitions of intangible assets under construction (€223 million) include activities mainly regarding the development for software relating to the infrastructure platform (€105 million), for Banco osta services (€50 million), for support to the sales network (€29 million), for the postal products platform (€26 million) and for the engineering of reporting processes for other Business and personnel functions (€13 million)

he balance of intangible assets under construction (€270 million) includes activities regarding the development for software relating to the infrastructure platform (€119 million), for Banco osta services (€61 million), for support to the sales network (€41 million), for the postal products platform (€32 million) and for the engineering of reporting processes for other Business and personnel functions (€17 million)

During the year, reclassifications were made from ntangible assets under construction to ndustrial patents and intellectual property rights amounting to €207 million, due to the completion and start-up of new software programs and the development of existing ones, relating to the infrastructure platform (€93 million), Banco osta services (€58 million), support for the sales network (€30 million), the postal products platform (€14 million) and the engineering of reporting processes for other Business and personnel functions (€12 million)

Lastly, during the year 2023, as part of the nergy roject, oste taliane made investments in application software for about €43 million, of which €9 million has not yet entered into production, and as part of the olis roject - Home of Digital ervices, with reference to the "One-stop shop" line of intervention, it made investments of about €3 million, of which €2 million has not yet entered into production

A4 – RIGHT-OF-USE ASSETS (€970 million)

Changes in right-of-use assets are as follows:

tab. A4 - Movements in right-of-use asset

(€m)	Properties used in operations	Company fleet	Vehicles for mixed use	Other assets	Total
Cost	1,315	329	25	36	1,705
Accumulated depreciation	(498)	(119)	(14)	(32)	(663)
Impairment losses	(1)	(4)	-	3	(2)
Balance at 1 January 2023	816	206	11	7	1,040
Changes during the year
New contract acquisitions	57	53	8	16	134
Adjustments	40	10	4	-	54
Disposals	(35)	-	-	-	(35)
Depreciation	(128)	(81)	(7)	(7)	(223)
Total changes	(66)	(18)	5	9	(70)
Cost	1,367	344	29	32	1,772
Accumulated depreciation	(617)	(155)	(14)	(16)	(802)
Impairment losses	-	(1)	1	-	-
Balance at 31 December 2023	750	188	16	16	970

Acquisitions during the year totalling €134 million refer to new contracts (€39 million) and renewals of contracts existing at the beginning of the year for real estate (€18 million), the rental of company vehicles used for mail and parcel delivery activities (€53 million), mixed-use vehicles (€8 million) and the rental of computer equipment (€16 million) he item Adjustments refers to contractual changes during the year in question, e g for changes in duration due to extension, revision of economic conditions, etc he item terminations refers to the early termination of existing contracts with respect to their natural maturity

he increase in Right-of-Use Assets recognised during the year and related to lease contracts for electric, hybrid and endothermic vehicles considered to be "green" amounted to approximately €39 million

Changes in lease payables are as follows:

tab. A4.1- Movements in lease liabilities

(€m)	FY 2023
Balance at 1 January	1,101
New contract increases	134
Payments	(243)
Finance costs/(income)	21
Other changes	19
Balance at 31 December	1,032
of which medium/long-term of which short-term	772 260

he table below summarises the effects recognised in the statement of profit or loss:

tab. A4.2 - Economic effects of lease agreements

(€m)	FY 2023
Depreciation of right-of-use assets	223
Impairments/recoveries/adjustments of right of use	-
Financial charges/(income) on lease payables	21
Costs related to short-term leases	4
Costs related to lease of low-value assets	9
Costs relating to intangible asset leases	102
Total	359

A5 – INVESTMENTS (€3,695 million)

his item includes the following:

tab. A5 - Investments

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Investments in subsidiaries	3,440	3,423	17
Investments in associates	255	253	2
Total	3,695	3,676	19

o investments are attributable to Banco osta RFC

Changes in equity investments in subsidiaries and associates are shown below:

Investments (€m)	Balance at 01.01.2023		Additions		Reductions	Impairment losses	Balance at 31.12.2023
		Subscriptions /Payments on capital a/c	Acquisitions, mergers, liquidations, spin-offs, transfers	Reclass. Non-current assets held for sale	Incentive plans	Sales, liquidations, mergers, spin-offs, transfers	Reclass. Non current assets held for sale	Write-back	(Write-down)
in subsidiaries
Agile Lab Srl	-	-	18	-	-	-	-	-	-	18
Agile Power Srl	18	-	(18)	-	-	-	-	-	-	-
BancoPosta Fondi SpA SGR	9	-	-	-	-	-	-	-	-	9
CLP ScpA	-	-	-	-	-	-	-	-	-	-
Consorzio PosteMotori	-	-	-	-	-	-	-	-	-	-
Consorzio Servizi ScpA	-	-	-	-	-	-	-	-	-	-
EGI SpA	170	-	-	-	-	-	-	-	-	170
MLK Deliveries SpA	15	-	20	-	-	-	-	-	-	35
Nexive Network Srl	16	-	-	-	-	-	-	-	-	16
Nexive Scarl	-	-	-	-	-	-	-	-	-	-
PatentiViaPoste ScpA	-	-	-	-	-	-	-	-	-	-
Poste Air Cargo Srl	1	-	-	-	-	-	-	-	-	1
Poste Vita SpA	2,070	-	-	-	-	-	-	-	-	2,070
Poste Welfare Servizi Srl	76	-	-	-	-	-	-	-	-	76
Postel SpA	83	-	-	-	-	-	-	-	-	83
PostePay SpA	902	-	-	-	-	-	-	-	-	902
SDA Express Courier SpA	14	-	-	-	-	-	-	-	-	14
sennder Italia Srl	3	-	-	-	-	(3)	-	-	-	-
Sengi Express Limited	16	-	-	-	-	-	-	-	-	16
Sourcesense SpA	30	-	-	-	-	-	-	-	-	30
Total subsidiaries	3,423	-	20	-	-	(3)	-	-	-	3,440
in associates
Anima Holding SpA	203	-	-	-	-	-	-	-	-	203
Conio Inc.	-	-	-	-	-	-	-	-	-	-
Financit SpA	40	-	-	-	-	-	-	-	-	40
ItaliaCamp Srl	-	-	-	-	-	-	-	-	-	-
Replica SIM SpA	10	-	-	-	-	-	-	-	-	10
sennder Italia Srl	-	-	2	-	-	-	-	-	-	2
Total associates	253	-	2	-	-	-	-	-	-	255
Total	3,676	-	22	-	-	(3)	-	-	-	3,695

he following movements occurred in 2023:

• Corporate reorganisation, on 28 ovember 2023, of the Agile Group by reverse merger of the parent company Agile ower rl into Agile Lab rl and simultaneous merger into the latter of the companies A M2, Agile ext and Agile kill, effective for accounting and tax purposes from 1 July 2023 and for legal purposes from 1 December 2023 herefore, as of that date, oste taliane holds a 70% stake in the company resulting from the reverse merger of Agile Lab rl

• urchase, on 19 July 2023, of the remaining 30% of the share capital of MLK Deliveries pA for a total of €20 million, following the exercise by oste taliane of its purchase option on the shares held by Milkman pA in MLK Deliveries pA With the transfer of the investment, oste taliane acquired full control of MLK Deliveries pA
• ransfer, on 29 June 2023, of 35% of the stake held in sennder italia rl to the shareholder sennder echnologies GmbH as part of the broader renegotiation of the current partnership between the company and oste taliane Following the completion of the transaction, which resulted in the recognition in the statement of profit or loss of a total capital gain of approximately €91 million, oste taliane holds a 25% stake in sennder talia rl25F ²⁵³ which, therefore, lost its status as a subsidiary and assumed that of an associate

Finally, the company Consorzio per i ervizi di elefonia Mobile cpA changed its name to Consorzio ervizi cpA he change was entered in the Rome Companies Register on 29 March 2023

Further details of the main corporate actions during 2023 are provided in ote 3 1 – Principal corporate actions

he impairment tests required by the related accounting standards have been conducted in order to identify any evidence of impairment Based on the available information and the impairment test results253F ²⁵⁴, there was no need to adjust the carrying amount of the investments

he following table shows a list of investments in subsidiaries and associates at 31 December 2023:

tab. A5.2 - List of investments

Name (€k)	% share	Share capital (1)	Net profit/(loss) for the year	Carrying amount of equity	Share of equity	Carrying amount at 31.12.2023	Difference between equity and carrying amount
in subsidiaries
Agile Lab Srl (2)	70.00	54	73	4,496	3,147	17,951	(14,804)
BancoPosta Fondi SpA SGR	100.00	12,000	28,650	58,721	58,721	8,592	50,129
CLP ScpA	51.00	516	-	788	402	313	89
Consorzio PosteMotori	58.12	120	-	120	70	70	-
Consorzio Servizi ScpA	51.00	120	-	116	59	61	(2)
EGI SpA	55.00	103,200	1,097	239,800	131,890	169,893	(38,003)
MLK Deliveries SpA	100.00	335	894	14,456	14,456	35,061	(20,605)
Nexive Network Srl	100.00	50	2,965	10,994	10,994	16,000	(5,006)
Nexive Scarl	85.89	28	-	26	22	-	22
PatentiViaPoste ScpA	69.65	120	96	220	153	84	69
Poste Air Cargo Srl	100.00	1,000	554	6,527	6,527	845	5,682
Poste Vita SpA	100.00	1,216,608	942,592	6,413,350	6,413,350	2,069,606	4,343,744
Poste Welfare Servizi Srl	100.00	16	3,511	79,513	79,513	75,921	3,592
Postel SpA	100.00	20,400	(3,270)	78,286	78,286	82,617	(4,331)
PostePay SpA	100.00	7,561	328,796	1,426,293	1,426,293	902,428	523,865
SDA Express Courier SpA	100.00	5,000	18,701	42,614	42,614	14,177	28,437
Sengi Express Limited (3)	51.00	541	7,923	8,863	4,520	16,000	(11,480)
Sourcesense SpA (2)	70.00	880	316	7,310	5,117	30,169	(25,052)
in associates
Anima Holding SpA (4)	11.60	7,292	96,390	1,393,653	161,664	203,001	(41,337)
Conio Inc.(2) (5)	16.29	12,087	(321)	9,847	1,604	486	1,118
Financit SpA	40.00	14,950	15,554	68,314	27,326	40,000	(12,674)
ItaliaCamp Srl (6)	19.40	155	173	2,893	561	2	559
Replica SIM SpA	45.00	10,500	(235)	9,420	4,239	10,000	(5,761)
sennder Italia Srl	25.00	50	6,208	11,327	2,832	1,356	1,476

(1) Consortium fund in the case of consortia he companies all have their registered offices in Rome, with the exception of Anima Holding pA, exive etwork rl, exive carl, sennder talia rl, Replica M pA and Agile ower rl with registered offices in Milan; Conio nc with registered offices in California (U A) and engi xpress Limited with registered offices in Hong Kong (China)

(2) hese amounts have been calculated under FR and, therefore, may not be consistent with those included in the investee company's annual financial statements prepared in accordance with the Civil Code and talian GAA and, in the case of Conio nc , in accordance with U GAA

(3) he figures shown for these companies were prepared in accordance with FR and, as such, may vary from those contained in the Annual Report of the company in compliance with Local GAA

(4) Figures taken from the company's latest interim consolidated financial statements at 30 eptember 2023, as approved by its board of directors

(5) Data derived from the latest Half-Yearly Financial Report approved by the company on 30 June 2023

(6) Data derived from the financial statements approved by the company on 31 December 2022

²⁵³ Prior to the described transfer, in April 2023 the company sennder Italia Srl carried out a reserved capital increase for sennder Technologies GmbH. Following this increase, Poste Italiane's stake in sennder Italia went from 65% to 60%.

²⁵⁴ The method applied and the criteria used in conducting impairment tests at 31 December 2023, are described in note 2.6 – Use of estimates, with regard to the impairment testing of goodwill, cash generating units and investments.

A6 - FINANCIAL ASSETS (€81,272 million)

Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022	Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Financial assets at amortised cost	30,481	12,794	43,275	27,812	16,538	44,350	(1,075)
Financial assets at FVTOCI	30,689	3,016	33,705	29,160	4,537	33,697	8
Financial assets at FVTPL	35	-	35	40	-	40	(5)
Derivative financial instruments	4,180	77	4,257	5,764	346	6,110	(1,853)
Total	65,385	15,887	81,272	62,776	21,421	84,197	(2,925)
of which attributable to BancoPosta RFC	64,384	15,826	80,210	61,901	21,392	83,293	(3,083)
of which Capital outside the ring-fence	1,001	61	1,062	875	29	904	158

F A C AL A A R BU ABL O BA CO O A RFC

Financial assets attributable to BancoPosta RFC

		Balance at 31.12.2023			Changes
Description (€m)	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Financial assets at amortised cost	30,124	12,734	42,858	27,473	16,509	43,982	(1,124)
Loans and receivables	-	12,460	12,460	-	16,283	16,283	(3,823)
Loans	-	1,769	1,769	-	1,358	1,358	411
Receivables	-	10,691	10,691	-	14,925	14,925	(4,234)
Deposits with the MEF	-	8,932	8,932	-	11,902	11,902	(2,970)
Receivables	-	8,937	8,937	-	11,907	11,907	(2,970)
Provisions for doubtful amounts deposited with MEF	-	(5)	(5)	-	(5)	(5)	-
Other financial receivables	-	1,759	1,759	-	3,023	3,023	(1,264)
Fixed income instruments	30,124	274	30,398	27,473	226	27,699	2,699
Financial assets at FVTOCI	30,054	3,015	33,069	28,624	4,537	33,161	(92)
Fixed income instruments	30,054	3,015	33,069	28,624	4,537	33,161	(92)
Financial assets at FVTPL	26	-	26	40	-	40	(14)
Equity instruments	26	-	26	40	-	40	(14)
Derivative financial instruments	4,180	77	4,257	5,764	346	6,110	(1,853) -
Total	64,384	15,826	80,210	61,901	21,392	83,293	(3,083)

Financial assets at amortised cost

A6.1 - Movements in financial assets at amortised cost

Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022	Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Financial assets at amortised cost	30,481	12,794	43,275	27,812	16,538	44,350	(1,075)
Financial assets at FVTOCI	30,689	3,016	33,705	29,160	4,537	33,697	8
Financial assets at FVTPL	35	-	35	40	-	40	(5)
Derivative financial instruments	4,180	77	4,257	5,764	346	6,110	(1,853)
Total	65,385	15,887	81,272	62,776	21,421	84,197	(2,925)
of which attributable to BancoPosta RFC	64,384	15,826	80,210	61,901	21,392	83,293	(3,083)
of which Capital outside the ring-fence	1,001	61	1,062	875		29 904	158
F A C AL A A Financial assets attributable to BancoPosta RFC	R BU ABL	O BA CO O A RFC
		Balance at 31.12.2023			Balance at 31.12.2022		Changes
Description (€m)	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Financial assets at amortised cost	30,124	12,734	42,858	27,473	16,509	43,982	(1,124)
Loans and receivables	-	12,460	12,460	-	16,283	16,283	(3,823)
Loans Receivables	- -	1,769 10,691	1,769 10,691	- -	1,358 14,925	1,358 14,925	411 (4,234)
Deposits with the MEF Receivables	- -	8,932 8,937	8,932 8,937	- -	11,902 11,907	11,902 11,907	(2,970) (2,970)
Provisions for doubtful amounts deposited with MEF	-	(5)	(5)	-		(5) (5)
Other financial receivables Fixed income instruments	- 30,124	1,759 274	1,759 30,398	- 27,473	3,023 226	3,023 27,699	(1,264) 2,699
Financial assets at FVTOCI	30,054	3,015	33,069	28,624	4,537	33,161	(92)
Fixed income instruments	30,054	3,015	33,069	28,624	4,537	33,161	(92)
Financial assets at FVTPL	26	-	26	40	-	40
Equity instruments	26	-	26	40	-	40
	4,180 64,384	77 15,826	4,257 80,210	5,764 61,901	346 21,392	6,110 83,293
A6.1 - Movements in financial assets at amortised cost
			Loans and receivables		Fixed income instruments		TOTAL
Derivative financial instruments Total he activities in question concern the financial transactions carried out by the Company pursuant to no 144 of 14 March 2001, as amended, which, as from 2 May 2011, fall within the scope of RFC (see note 5 2 - Information on BancoPosta RFC) Financial assets at amortised cost Movements in financial assets measured at amortised cost are shown below: Securities (€m)			Carrying amount	Nominal value		Carrying amount	(14) (14) (1,853) - (3,083) residential Decree Carrying amount
Balance at 1 January 2023			16,283		28,304	27,699	43,982
Purchases				-	2,828	2,754
Changes in amortised cost				-	-	(52)
Transfers to equity reserves				-	-	(76)
Changes in fair value through profit or loss				-	-	340	2,754 (52) (76) 340
Changes due to cash flow hedges(*)				-	-	53
Changes due to impairment				-	-	(5)
Net changes			(4,709)		-	-
Effects of sales on profit or loss				-	-	47
Accruals				5	-	233
Sales, redemptions and settlement of accruals				-	(255)	(595)
Other changes				881	-	-	53 (5) (4,709) 47 238 (595) 881
Balance at 31 December 2023			12,460		30,877	30,398	42,858

(*) he item, "Changes in cash flow hedges", relates to the purchase of forward contracts in relation to cash flow hedge transactions and reflects changes in the fair value of these forward contracts between the date of purchase of the derivative contract and the settlement date, with a matching entry in

Loans and receivables

he item Loans refers to reverse repurchase agreements of €4,106 million (€4,575 million at 31 December 2022), of which €3,956 million entered into with Cassa di Compensazione e Garanzia pA (hereinafter CC&G) and €150 million with leading financial operators, both for the temporary use of liquidity from private inflows hese transactions are guaranteed by securities for a total notional amount of €3,874 million Financial assets and liabilities relating to repurchase agreements managed through the CC&G that meet the requirements of A 32 are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022) At 31 December 2023, the fair value254F ²⁵⁵ of said item was €1,769 million

Receivables include:

• Deposits with the MEF for €8,937 million, including public customers' postal current account deposits, which earn a variable rate of return, calculated on a basket of government bonds25F 256 he deposit has been adjusted to reflect accumulated impairments of approximately €5 million, to reflect the risk of counterparty default (unchanged compared to 31 December 2022) he decrease in deposits of €2,970 million was mainly due to the typical operations of some customers in the ublic Administration, which generated a contraction in deposits from postal current accounts During the financial year 2023, hedging derivative contracts were concluded on the 10-year index-linked remuneration component he hedging transaction (Cash Flow Hedge) was carried out through forward purchases of the 10-year B with settlement of the differential between the pre-set price of the security and its market value hese transactions, completed at 31 December 2023, generated positive effects of €5 million, which was recognised in profit or loss under the item ncome from investment in postal current accounts and free cash

• Other financial receivables:

• €1,223 million from amounts due for guarantee deposits, of which: €772 million for sums paid to counterparties for repo transactions on fixed income instruments (collateral under specific Global Master Repurchase Agreements), €323 million for sums paid to CC&G (of which €234 million for outstanding repo transactions and €89 million as a pre-funded contribution to the Default Fund256F ²⁵⁷), €82 million for amounts paid to counterparties for interest rate swap transactions (collateral provided for in specific Credit upport Annexes) and €46 million in sums paid as collateral in relation to clearing systems with central counterparties for over-the-counter transactions in derivatives257F ²⁵⁸;
• €185 million relating to amounts due from the subsidiary oste ay pA, for sums settled in the first few days of 2024

he year-on-year decrease in guarantee deposits is mainly due to the reduction in amounts paid to counterparties with whom repo transactions are in place as a result of the combined effect of the change in the interest rate curve, which generated an increase in the fair value of the securities as collateral, and the lower amount of transactions outstanding at the date

Fixed income instruments

hese are euro area fixed income instruments held by Banco osta RFC, consisting of government securities issued by the talian government and securities guaranteed by the talian government with a nominal value of €30,877 million heir

²⁵⁵ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.

²⁵⁶ The variable rate in question is calculated as follows: 40% is based on the average return on six-month BOTs recognised monthly and the remaining 60% is based on the average ten-year BTP return recognised monthly.

²⁵⁷ A guarantee fund established with payments from participants in the derivative, equity and bond markets, as a further guarantee for the transactions carried out. The fund can be used to meet the charges arising from any participant default.

²⁵⁸ These are transactions carried out outside the regulated securities markets and therefore not subject to any specific regulation concerning the organisation and operation of the market itself.

carrying amount of €30,398 million reflects the amortised cost of unhedged fixed income instruments, totalling €19,325 million, the amortised cost of fair-value hedged fixed income instruments, totalling €13,017 million, decreased by €1,944 million to take into account the effects of the hedge (€2,714 in 2022) Fixed income instruments measured at amortised cost are adjusted to take into account the related impairments Accumulated impairments at 31 December 2023 amount to approximately €18 million (€13 million at 31 December 2022) At 31 December 2023, the fair value258F ²⁵⁹ of these securities was €28,318 million (including €233 million in accrued income)

his category of financial asset includes fixed rate instruments, for a total nominal amount of €3,000 million, issued by Cassa Depositi e restiti pA and guaranteed by the talian government (at 31 December 2023, their carrying amount totals €2,889 million)

Financial assets at fair value through other comprehensive income

Movements in financial assets measured at fair value through other comprehensive income (FV OC ) are shown below:

		Fixed income securities
Securities (€m)	Nominal value	Fair value
Balance at 1 January 2023	37,489	33,161
Purchases	3,890	3,857
Transfers to equity reserves	-	-
Changes in amortised cost	-	35
Changes in fair value through equity Changes in fair value through profit or loss	- -	1,938 383
Changes due to cash flow hedges(*)	-	242
Effects of sales on profit or loss	-	110
Accruals	-	253
Sales, redemptions and settlement of accruals	(6,520)	(6,910)
Balance at 31 December 2023	34,859	33,069
with a nominal value of €34,859 million he overall fluctuation in fair value in the year in question was a positive €2,321 million, recognised in the relevant equity reserve in relation to the portion of the portfolio not hedged by fair value hedges (positive for €1,938 million) and recognised through profit or loss in relation to the hedged portion (positive for €383 million) hese instruments are subject to impairments recognised in profit or loss with a matching entry in the relevant equity reserve Accumulated impairments at 31 December 2023 amount to €19 million (€16 million at 31 December 2022) decrease in this item is mainly due to higher sales/reimbursements made during the year compared to purchases, partially		he
offset by the positive change in fair value mentioned above
Certain securities are encumbered as they have been delivered to counterparties for use as collateral in connection with loans and hedging transactions, as described in note 13 – Additional information
259 In terms of the fair value hierarchy, which reflects the relevance of the sources used to measure assets, €25,231 million of the total amount qualifies for inclusion in Level 1 and €3,087 million for inclusion in Level 2.

Fixed income instruments

²⁵⁹ In terms of the fair value hierarchy, which reflects the relevance of the sources used to measure assets, €25,231 million of the total amount

Financial assets at fair value through profit or loss

Equity instruments

he item quity instruments refers to the fair value of 32,059 Visa ncorporated preference shares ( eries C Convertible articipating referred tock) hese shares are convertible at the rate of 3 625259F ²⁶⁰ ordinary shares for each C share, minus a suitable illiquidity discount

et fair value gains in the year under review, amounting to €6 million, have been recognised in profit or loss in the items ncome and xpenses from financial activities

On 1 March 2023, the forward sale of 198,000 Visa ncorporated ordinary shares outstanding at 31 December 2022 was settled without exchange of the underlying, the economic effect of which, in the amount of approximately €2 million, was recognised in xpenses from financial activities

n addition, two separate forward sales contracts were concluded during the financial year 2023:

• the forward sale of 101,900 Visa ncorporated ordinary shares260F ²⁶¹, settled on 3 April 2023, for a total consideration of €20 8 million with insignificant effects on the statement of profit or loss;
• the outstanding forward sale of 95,000 Visa ncorporated ordinary shares with a total consideration of €20 5 million and a settlement date of 3 March 2025261F ²⁶² Fair value fluctuations in the year under review, amounting to a negative €2 6 million, have been recognised in profit or loss in " xpenses from financial activities"

²⁶⁰ Until the assigned shares are fully converted into ordinary shares, the share exchange ratio may be reduced if Visa Europe Ltd. incurs liabilities that, at the reporting date, were considered as merely contingent.

²⁶¹ On 20 March 2023, the 1,019 shares of Series A Preferred Stock held at 31 December 2022 were converted into ordinary shares, based on the conversion ratio of 100 ordinary shares for every share of Class A Preferred Stock. ²⁶² The ordinary shares involved in the forward sale amount to approximately 26,207 Visa Incorporated (series C) preference shares held in portfolio at the applicable conversion rate at 31 December 2023.

Derivative financial instruments

tab. A6.3 - Movements in financial derivatives

	Balance at 31.12.2023		Balance at 31.12.2022
Description (€m)	Nominal	Fair value	Nominal	Fair value
Cash flow hedges Forward purchases - securities Forward sales - securities Interest rate swaps	- - 3,287	- - (513)	3,433 1,099 2,943	(92) 346 (531)
Fair value hedges Interest rate swaps on securities at FVTOCI and CA Interest rate swaps on repos	25,031 3,996	3,718 (83)	27,940 3,996	5,571 (155)
FVTPL Forward sales	-	(3)	-	(4)
Total	32,314	3,119	39,411	5,135
Of which: Derivative assets Derivative liabilities	19,665 12,649	4,257 (1,138)	27,404 12,007	6,110 (975)

nterest rate swap cash flow hedges relate exclusively to securities valued at FV OC nterest rate risk cash flow hedges recorded a net negative change of €236 million during the year, of which €80 million related to the net positive change in fair value of the effective component of the hedge, reflected in the cash flow hedge reserve, and €316 million related to the net negative change in completed transactions26F ²⁶³ during the year and the ineffective component of hedging contracts

Fair value hedges in interest rate swaps are used to hedge:

• securities measured at amortised cost with a nominal value of €12,011 million and securities measured at FV OC with a nominal value of €13,020 million; in total, they underwent a net negative change of €1,853 million during the year, of which €538 million related to the net negative change in fair value of the effective component of the hedge and €1,315 million related to the net negative change in transactions completed during the year and the ineffective component of hedging contracts;
• repurchase agreements classified at amortised cost with a nominal value of €3,996 million, whose net positive change was €72 million, of which €32 million related to the net positive change in fair value of the effective hedging component and €40 million related to the net positive change in completed transactions

n the year under review, the Company carried out the following transactions:

• settlement of forward purchases of securities outstanding at 1 January 2023 for a nominal value of €3,433 million;
• forward purchases of securities to hedge, as of 1 January 2023, the yield of the M F Deposit and settlement for a nominal amount of €290 million;
• settlement of forward sales of securities outstanding at 1 January 2023 for a nominal value of €1,099 million;
• the stipulation of new cash flow interest rate swaps with a nominal value of €484 million and the adjustment of those outstanding on 1 January 2023 for a nominal amount of €140 million;
• the stipulation of new fair value interest rate swaps to hedge the securities portfolio with a nominal value of €3,596 million;
• early settlements of fair value hedge interest rate swaps with a nominal value of €6,505 million (of which: €980 million related to hedging transactions for which the underlying security was also sold, €3,015 million related to hedging transactions without sale of the underlying security, and €2,510 million related to hedging transactions for which new

²⁶³ Transactions settled include forward transactions settled, accrued differentials and the settlement of interest rate swaps linked to securities sold.

asset swaps were entered into) with the aim of consolidating a fixed yield in line with the market situation, while at the same time improving the income profile of a portion of the portfolio for subsequent years

F A C AL A OU D R G-F C

Financial assets outside ring-fence

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Financial assets at amortised cost	356	61	417	339	29	368	49
Loans and receivables	356	61	417	339	29	368	49
Loans	354	54	408	337	28	365	43
Receivables	2	7	9	2	1	3	6
Due from the purchasers of service accommodation	2	2	4	2	1	3	1
Due from others	-	25	25	-	20	20	5
Provisions for doubtful debts	-	(20)	(20)	-	(20)	(20)	-
Financial assets at FVTOCI	636	-	636	536	-	536	100
Fixed income instruments	99	-	99	91	-	91	8
Equity instruments	537	-	537	445	-	445	92
Financial assets at FVTPL	9	-	9	-	-	-	9
Convertible bond	9	-	9	-	-	-	9
Derivative financial instruments	-	-	-	-	-	-	-
Total	1,001	61	1,062	875	29	904	158

Financial assets at amortised cost

Movements in financial assets measured at amortised cost are shown below:

A6.4 - Movements in financial assets at amortised cost

	Loans	Receivables	Total
(€m)	Carrying amount	Carrying amount	Carrying amount
Balance at 1 January 2023	365	3	368
Purchases	65	-	65
Net changes	-	6	6
Accruals	5	-	5
Sales, redemptions and settlement of accruals	(27)	-	(27)
Balance at 31 December 2023	408	9	417

Loans

Details are shown below:

tab. A6.4.1 - Loans at amortised cost

Name (€m)	Balance at 31.12.2023			Balance at 31.12.2022			Changes
	Loans	correspondence a/c	Total	Loans	correspondence a/c	Total
Direct subsidiaries
Poste Vita SpA		254 -	254	253	-	253	1
SDA Express Courier SpA		62 7	69	48	-	48	21
Postel SpA		17 2	19	-	-	-	19
Nexive Network Srl		- 9	9	-	17	17	(8)
Poste Air Cargo Srl		- 5	5	-	5	5	-
Sourcesense SpA		- 4	4	-	-	-	4
Consorzio Servizi ScpA		- 2	2	-	-	-	2
Agile Lab Srl		- 1	1	-	-	-	1
Indirect subsidiaries
Plurima SpA		45 1	46	-	-	-	46
Plurima Bidco Srl		- -	-	43	-	43	(43)
		378 31	409	344	22	366	43
Provision for impairment of intercompany loans		(1) -	(1)	(1)	-	(1)	-
Total		377 31	408	343	22	365	43

he item includes:

• €254 million relating to an irredeemable subordinated loan, issued to oste Vita pA in order to bring the subsidiary's capitalisation into line with expected growth in earned premiums, in compliance with the specific regulations governing the insurance sector;
• €17 million for the full utilisation of the committed revolving credit line granted during the year to the subsidiary ostel pA, maturing on 4 July 2026;
• €62 million for a total of five loans granted to the subsidiary DA xpress Courier pA in the financial years 2019, 2020, 2021 and 2023, to support the construction of the new automated HUB facilities in Bologna, " orth" and "Centre", iacenza and aples, repayable in a lump sum on 2 August 2027, 16 April 2029, 5 August 2030, 6 April 2032 and 19 April 2032 respectively;
• €45 million for two loans granted to the subsidiary lurima pA, the first for €41 million, repayable in a lump sum on 27 April 2029263F ²⁶⁴, the second for €4 million granted to meet short-term operating needs and to support the exercise of the option to purchase the remaining 40% of the share capital of Bridge echnologies rl, repayable in a lump sum on 6 April 2027;
• €31 million regarding overdrafts on intercompany current accounts granted to subsidiaries, paying interest on an arm's length basis

hese loans have been adjusted to reflect accumulated impairments of approximately €1 million, to reflect the risk of counterparty default, unchanged from 31 December 2022

Receivables

Due from others include a nominal value of €20 million for the residual receivable from nvitalia pA for the sale of Banca del Mezzogiorno-MedioCreditoCentrale pA (BdM), fully written off, and €5 million from oste Vita pA for interest accrued on Ancillary Own Funds at 31 December 2023, as described in ote 3 2 - Other material events

Financial assets at fair value through other comprehensive income

Movements in financial assets at fair value through other comprehensive income (FV OC ) are shown below:

		Fixed income securities	Equity instruments		Total
(€m)	Nominal value	Fair value	Fair value	Nominal value	Fair value
Balance at 1 January 2023	110	91	445	110	536
Purchases	-	-	3	-	3
Changes in amortised cost	-	2	-	-	2
Changes in fair value through equity	-	6	(4)	-	2
Extraordinary transactions	-	-	93	-	93
Balance at 31 December 2023	110	99	537	110	636
his item includes one talian government bond with a nominal value of €110 million purchased during 2022 in fair value at 31 December 2023 was positive for €6 million and recognised in the specific equity reserve Equity instruments					he fluctuation
his item breaks down as follows:
264 On 29 September 2022, the reverse merger of Plurima Bidco Srl into Plurima SpA was approved, effective 1 January 2023. Consequently, the loan granted in the year 2022 in favour of Plurima Bidco Srl to support the corporate transaction for the acquisition of a majority stake in Plurima SpA was reclassified.

Fixed income instruments

Equity instruments

²⁶⁴ On 29 September 2022, the reverse merger of Plurima Bidco Srl into Plurima SpA was approved, effective 1 January 2023. Consequently, the loan granted in the year 2022 in favour of Plurima Bidco Srl to support the corporate

2023 Annual Report

Tab. A6.5.1 - Shares at FVTOCI
Name (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Nexi SpA sennder Technologies GmbH	345 112	343 19	2 93
MFM Holding Ltd	55	57	(2)
Scalapay Limited	25	25	-
Milkman SpA Total	- 537	2 446	(2) 91
n June 2023, following the completion of the renegotiation of the current partnership with sennder echnologies GmbH,
oste taliane acquired an additional stake in the company for a total of €93 million For further details on the transaction,
see the section Main changes to the scope of consolidation
n July 2023, oste taliane participated in a new capital increase promoted by MFM Holding Ltd with an investment of €3 million
he overall fluctuation in fair value of the item in question was negative for €4 million and recognised in the specific equity reserve
Lastly, the item includes, for €75 million the investment in CA written off in 2014	pA (formerly Alitalia CA	pA), acquired in 2013 and fully
Further details of the main corporate actions during 2023 are provided in notes 3 1 – Principal corporate actions
Financial assets at fair value through profit or loss
he item includes a portion of the convertible bond issued by sennder echnologies GmbH and subscribed by taliane in July 2023 for about €8 5 million, representing the fair value at 31 December 2023, as well as participating financial instruments arising from the conversion of Contingent Convertible at 31 December 2023, was zero		265 otes264F - issued by Midco pA - whose value,	oste
Derivative financial instruments
he following transactions took place during 2023:
• stipulation and settlement of three commodity swaps for the operational hedging of fuel costs relating to the air transport of mail carried out via the subsidiary,	oste Air Cargo rl;
• stipulation and settlement of forty-two non-deliverable forward contracts to operationally hedge the currency risk
(euro/dollar) mainly related to aircraft leasing fees for air mail transport, carried out through the subsidiary Cargo rl			oste Air
Finally, in October 2023, a cash flow hedge interest rate swap contract entered into in 2013 to hedge the cash flows of a
€50 million bond issued on 25 October 2013 (note B 6 Financial liabilities) reached maturity			he closing of the derivative
resulted in the release to the statement of profit or loss, recognised under Finance ncome, of the cash flow hedge reserve
of approximately €6 million, which was established as of 25 October 2015, the date from which the cash flow hedge became
operative
265 These are Contingent Convertible Notes with an original value of €75 million, a twenty-year term to maturity and issued by Midco SpA, which in turn owns 51% of the company Alitalia SAI SpA. The Notes were subscribed by Poste Italiane SpA in December 2014, as part of the transaction aimed at Etihad Airways' acquisition of an equity interest in Alitalia SAI. On the fulfilment of certain negative pledge conditions, in 2017 the loan was converted into participating financial instruments (as defined by art. 2346, paragraph 6 of the Italian Civil Code), carrying the same rights associated with the Notes.

Financial assets at fair value through profit or loss

Derivative financial instruments

• stipulation and settlement of three commodity swaps for the operational hedging of fuel costs relating to the air transport of mail carried out via the subsidiary, oste Air Cargo rl;
• stipulation and settlement of forty-two non-deliverable forward contracts to operationally hedge the currency risk (euro/dollar) mainly related to aircraft leasing fees for air mail transport, carried out through the subsidiary oste Air Cargo rl

²⁶⁵ These are Contingent Convertible Notes with an original value of €75 million, a twenty-year term to maturity and issued by Midco SpA, which in turn owns 51% of the company Alitalia SAI SpA. The Notes were subscribed by Poste Italiane SpA in December 2014, as part of the transaction aimed at Etihad Airways' acquisition of an equity interest in Alitalia SAI. On the fulfilment of certain negative pledge conditions, in 2017 the loan was converted into participating financial instruments (as defined by art. 2346, paragraph 6 of the Italian Civil Code), carrying the same rights

A7 - INVENTORIES (€4 million)

his item includes inventories of Raw, ancillary and consumable materials related to protective devices, disinfectant gel and other materials purchased in the year 2020, as a result of the AR -Covid health emergency

A8 - TRADE RECEIVABLES (€2,775 million)

tab. A8 - Trade receivables
Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022			Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Due from customers		1 1,762	1,763		1 1,608	1,609	154
Due from subsidiaries and associates Due from the Parent company	- -	763 249	763 249	- -	791 257	791 257	(28) (8)
Total		1 2,774	2,775		1 2,656	2,657	118
of which attributable to BancoPosta RFC	-	1,006	1,006	-	819	819	187

Due from customers

tab. A8.1 - Amounts due from customers

		Balance at 31.12.2023			Balance at 31.12.2022		Changes
Description (€m)	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Ministries and Public Administration entities	-	548	548	-	565	565	(17)
Due from private individuals for parcel delivery services	-	453	453	-	418	418	35
Overseas counterparties	-	322	322	-	386	386	(64)
Due from private individuals for mail services	-	251	251	-	275	275	(24)
Cassa Depositi e Prestiti	-	247	247	-	22	22	225
Amounts due for other BancoPosta services	-	58	58	-	62	62	(4)
Overdrawn current accounts	-	45	45	-	40	40	5
Other amounts due from customers	1	231	232	1	233	234	(2)
Provisions for doubtful debts due from customers	-	(393)	(393)	-	(393)	(393)	-
Total	1	1,762	1,763	1	1,608	1,609	154
of which attributable to BancoPosta RFC	-	322	322	-	108	108	214

he increase in Due from customers is mainly attributable to the increase in amounts due from Cassa Depositi e restiti for amounts accrued to be invoiced at the relevant date, based on the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023, to the Agreement with Cassa Depositi e restiti renewed on 23 December 2021 for the period 2021-2024

pecifically265F ²⁶⁶:

• Amounts due from Ministries and Public Administration entities refer mainly to the following services:
  • Compensation for ublisher tariff subsidies, due from the Cabinet Office ublishing Department, amounting to €215 million, of which €55 million accrued during the year At 31 December 2023, these receivables are shown gross of the collection of an unavailable amount of €195 million, relating to the tariff subsidies applied in 2020, 2021, 2022 and until the third quarter of 2023, deposited by the Cabinet Office - ublishing Department, in a noninterest-bearing account held by the Company with the tate reasury and for this reason recorded under ayables for advances received On 29 January 2024, the uropean Commission, in the matter of tate aid, anticipated the formal decision to authorise the compensatory mechanism in favour of oste taliane for the tariff subsidies granted to publishing companies; consequently, with the communication of 31 January 2024, the

²⁶⁶ At 31 December 2023, the balance of trade receivables includes €6 million, net of the related provisions for doubtful debts, relating to rental income falling within the scope of IFRS 15 – Revenue from Contracts with Customers.

Cabinet Office, in consideration of the need to guarantee the economic sustainability of the postal service for the delivery of publishing publications at subsidised rates, authorised the release of the credited sums n December 2023, €13 million was collected related to tariff subsidies charged in the years 2018-2019

• ntegrated otification and mailroom services rendered to central and local government authorities, amounting to €51 million
• Reimbursement of building, vehicle and security costs, postage and other services incurred on behalf of the Ministry of nterprise and Made in taly (M M )26F ²⁶⁷ in the amount of €51 million his receivable is made up for the remaining €28 million of the original €62 million receivable for charges arising from the use of real estate and other services provided until 2012 his position, which was the subject of a legal dispute between the parties, in compliance with the first instance ruling, was partially collected in 2021 for €34 million he addition to the balance consists of €23 million mainly related to charges for the use of real estate for the period 2013-2023 for which negotiations with the counterparty are ongoing
• Mail forwarding and notification services provided following a tender procedure for a total of €49 million
• Mail services provided on credit, totalling €36 million, to central and local government authorities
• Market Registered Mail services, totalling €33 million, provided to central and local government entities
• Unfranked mail services, totalling €18 million, provided to central and local ublic Administrations
• he payment of pensions on behalf of (the ational nstitute of ocial ecurity), totalling €11 million
• Amounts due for parcel delivery services refer to receivables from customers using the "national and international express courier" range of services
• Amounts due from overseas counterparties primarily relates to postal services carried out for overseas postal operators
• Amounts due for mail services refer to receivables to private customers who use the "delivery and mailing" range of services
• Amounts due from Cassa Depositi e Prestiti refer to fees for Banco osta's deposit-taking activities
• Amounts due for other BancoPosta services mainly refer to intermediation services (banking, personal loans, mortgages) provided totalling 29 million euros
• Amounts due for overdrawn current accounts derive almost exclusively from overruns due to the debiting of Banco osta's periodic fees

²⁶⁷ Former Ministry of Economic Development.

Due from subsidiaries and associates

		tab. A8.2 - Due from subsidiaries and associates
--	--	--------------------------------------------------	--	--

(€m) Direct subsidiaries	31.12.2023	31.12.2022	Changes
BancoPosta Fondi SpA SGR	29	20	9
CLP ScpA Consorzio PosteMotori		3 3 3 3	- -
EGI SpA	-	1	(1)
MLK Deliveries SpA PatentiViaPoste ScpA	-	1 1 4	(1) (3)
Poste Air Cargo Srl		1 1	-
Poste Vita SpA Postel SpA	355 58	333 47	22 11
PostePay SpA	189	282	(93)
Poste Welfare Servizi Srl SDA Express Courier SpA	19	5 5 17	- 2
Sengi Express Limited	66	33	33
Nexive Network Srl Nexive Scarl	13	1 3 11	(2) 2
Indirect subsidiaries
Kipoint SpA		1 1	-
Poste Assicura SpA	16	23	(7)
Poste Insurance Broker Srl Lis Pay SpA	-	1 1 -	(1) 1
Associates
Financit SpA		3 3	-
Italia Camp Srl		1 -	1
Provision for doubtful debts		(2) (1)	(1)
		791	(28)
Total of which attributable to BancoPosta RFC hese trade receivables include: • oste Vita pA: primarily regarding fees deriving from the sale of insurance policies through attributable to Banco osta RFC (€324 million);	763 436	454
• oste ay pA: mainly for product placement services related to the payments business (€72 million), for the service on its own account and on behalf of third parties (€26 million) and for "sim" placement services performed at ost Offices (€23 million);
• engi xpress Limited: entirely for parcel delivery services			(18) ost Offices and MA
Due from the arent Company
his item relates to trade receivables due from the Ministry of the conomy and Finance:
tab. A8.3 - Due from the Parent Company
Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Remuneration of current account deposits	218	227	(9)
Universal Service	31	31	-
Delegated services Publisher tariff and electoral subsidies	30 1	30 1	- -
Other	2	1	1
Provision for doubtful debts due from the Parent Company	(33)	(33)	-
Total of which attributable to BancoPosta RFC	249 248	257 257	(8) 248

• oste Vita pA: primarily regarding fees deriving from the sale of insurance policies through ost Offices and attributable to Banco osta RFC (€324 million);
• oste ay pA: mainly for product placement services related to the payments business (€72 million), for the MA service on its own account and on behalf of third parties (€26 million) and for "sim" placement services performed at ost Offices (€23 million);
• engi xpress Limited: entirely for parcel delivery services

Due from the arent Company

tab. A8.3 - Due from the Parent Company

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Remuneration of current account deposits	218	227	(9)
Universal Service	31	31	-
Delegated services	30	30	-
Publisher tariff and electoral subsidies	1	1	-
Other	2	1	1
Provision for doubtful debts due from the Parent Company	(33)	(33)	-
Total	249	257	(8)
of which attributable to BancoPosta RFC	248	257	248

• Receivables for Universal Service compensation includes:

tab. A8.3.1 - Universal Service compensation receivable

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Remaining balance for 2012	23	23	-
Remaining balance for 2005	8	8	-
Total	31	31	-

n the year under review, the Group received €262 million in accrued compensation for the period he amount of compensation was recognised based on the terms of the new 2020-2024 ervice Contract, effective 1 January 2020

With reference to the amount receivable for 2012, AGCom has recognised a net cost incurred by the Company of €327 million, compared with compensation of €350 million originally recognised rovision has not been made in the state budget for the remaining €23 million he Company appealed AGCom's decision on 13 ovember 2014 before the Regional Administrative Court ( AR)

he outstanding receivable relating to compensation for 2005 was subject to cuts in the budget laws for 2007 and 2008

rovisions for doubtful debts have been made for the full amount of the above receivables

• Amounts due for delegated services, refer exclusively to the amount accrued in 2023 and relating to the remuneration of services performed by Banco osta on behalf of the state in accordance with a special agreement with the M F, expired on 19 May 2023 for the two-year period 2023-2024
• Receivables arising from electoral subsidies refer to compensation for previous years, for which no provision has been made in the state budget

rovisions for doubtful trade debts

Movements in the provisions for doubtful debts (due from customers, the arent Company and subsidiaries and associates) are as follows:

tab. A8.4 - Detail of provision for doubtful trade receivables

(€m)	Balance at 01.01.2023	Net provisions	Uses
Trade receivables
Due from customers	318	14	(22)	310
Private customers	225	18	(19)	224
Public administration entities	80	(3)	(3)	74
Overseas postal operators	13	(1)	-	12
Interest on late payments	75	26	(18)	83
Due from the Parent company	33	-	-	33
Due from subsidiaries and associates	1	1	-	2
Total	427	41	(40)	428
of which attributable to BancoPosta RFC	40	8	(3)	45

et provisions of €18 million for amounts due from private customers refer mainly to receivables subject to bankruptcy proceedings and receivables entrusted to the legal department for recovery Utilisations for the year mainly refer to the write-off of receivables following the conclusion of bankruptcy proceedings and agreements, and to the write-off of receivables for current accounts with a debtor balance, for which it was ascertained that recovery actions were not cost effective, also taking into account the small amount of the individual credit positions

he provisions for doubtful debts due from the M F reflect the absence of funds in the state budget, meaning it is not possible to collect certain amounts receivable, recognised on the basis of legislation or contracts and agreements in effect at the time of recognition, largely relating to the Universal ervice

For the sake of completeness, the following tables present details of the gross carrying amount and the provision to cover expected losses for each class of trade receivables his detail is provided separately depending on whether the model used to estimate the CL is based on an analytical or a lump-sum valuation For more details on the inputs, assumptions and estimation techniques used to calculate the impairment of financial assets, as well as for information on how collateral and other credit risk mitigation instruments are considered in the calculation of the provisions for doubtful trade debts, see Note 2.6 - Use of estimates - Impairment and stage allocation for financial instruments

tab. A8.4.1 - Trade receivables impaired on an analytical basis

Description (€m)	31.12.2023		31.12.2022
	Gross carrying amount	Provision for doubtful debts	Gross carrying amount	Provision for doubtful debts
Trade receivables
Due from customers	1,224	(183)	822	(182)
Private customers	381	(149)	327	(147)
Ministries and Public Administration entities	379	(34)	376	(35)
Cassa Depositi e Prestiti	247	-	22	-
Overseas counterparties	217	-	97	-
Due from the Parent Company	279	(31)	288	(31)
Due from subsidiaries and associates	765	(2)	792	(1)
Total	2,268	(216)	1,902	(214)

Tab. A8.4.2 - Trade receivables written down on the basis of the provision matrix

Range of past due (€m)	31.12.2023		31.12.2022
	Gross carrying amount	Provision for doubtful debts	Gross carrying amount	Provision for doubtful debts
Not past due trade receivables	534	(13)	699	(12)
Past due 0 - 1 year	91	(10)	176	(8)
Past due 1 - 2 years	43	(6)	55	(6)
Past due 2 - 3 years	43	(6)	42	(5)
Past due 3 - 4 years	25	(6)	24	(13)
Past due > 4 years	36	(28)	49	(49)
Positions subject to legal recovery and/or insolvency proceedings	163	(143)	137	(120)
Total	935	(212)	1,182	(213)

A9 - OTHER RECEIVABLES AND ASSETS (€2,777 million)

his item breaks down as follows:

Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022			Changes
	Notes	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Substitute tax paid		1,752	572	2,324	1,738	525	2,263	61
Due from subsidiaries and associates		-	150	150	-	32	32	118
Receivables relating to fixed-term contract settlements		29	73	102	36	76	112	(10)
Due from social security agencies and pension funds (excl. fixed-term contract settlements)		-	72	72	-	137	137	(65)
Receivables for amounts that cannot be drawn on due to court rulings		-	58	58	-	71	71	(13)
Interest accrued on IRES refund	[C12]	-	46	46	-	46	46	-
Tax assets		-	26	26	-	43	43	(17)
Accrued income and prepaid expenses from trading transactions		-	10	10	-	9	9	1
Sundry receivables		17	57	74	17	42	59	15
Provisions for doubtful debts due from others		(3)	(82)	(85)	(3)	(149)	(152)	67
Total		1,795	982	2,777	1,788	832	2,620	157
of which attributable to BancoPosta RFC		1,752	608	2,360	1,738	573	2,311	49

pecifically:

• Substitute tax paid, attributable to Banco osta RFC, primarily regards:
  • €1,752 million charged to holder of nterest-bearing ostal Certificates for stamp duty at 31 December 2023267F ²⁶⁸; this amount is balanced by a matching entry in "Other taxes payable" until expiration or early extinguishment of the nterest-bearing ostal Certificates, i e the date on which the tax is payable to the tax authorities (tab B9 3);
  • €407 million relating to advances paid to the tax authorities for stamp duty to be paid in virtual form in 2024 and to be recovered from customers;
  • €96 million relating to stamp duty to be charged to ostal avings Book holders, which the Company pays in virtual form as required by law;
  • €30 million in advances on withholding tax on interest paid to current account holders for 2023, which is to be recovered from customers
• Amounts due from subsidiaries and associates include €129 million in amounts receivable from subsidiaries by oste taliane pA, as the consolidating entity (note 2 5 – Material information on accounting standards) he related amounts are mainly due from the subsidiaries oste Vita pA, oste ay pA and oste Assicura pA
• Receivables relating to fixed-term contract settlements consist of salaries to be recovered following the agreements268F ²⁶⁹ between oste taliane pA and the trade unions, regarding the re-employment by court order of staff previously employed on fixed-term contracts his item refers to receivables with a present value of €102 million from personnel, from and pension funds recoverable in the form of variable instalments, the last of which is due in 2042 he item also includes amounts due from (formerly O ) of €42 million, covered by a specific agreement with O dated 23 December 2009 ayment of this amount consists of six instalments of €6 9 million each, falling due between 30 June 2012 and 31 December 2014; negotiations are in progress with the debtor for their recovery
• Due from social security agencies and pension funds totalling €72 million decreased compared to 31 December 2022, mainly as a result of the derecognition of receivables related to past items and the recovery of the residual

²⁶⁸ Introduced by article 19 of Law Decree 201/2011 converted with amendments by Law 214/2011 in the manner provided for by the MEF Decree of 24 May 2012: Manner of implementation of paragraphs from 1 to 3 of article 19 of Law Decree 201 of 6 December 2011, on stamp duty on current accounts and financial products (Official Journal 127 of 1 June 2012).

²⁶⁹ CTD contract settlements were signed on 13 January 2006, 10 July 2008, 27 July 2010, 18 May 2012, 21 March 2013, 30 July 2015 and 19 June 2018

amounts related to the periods of suspension or reduction of work for Covid-19 by means of a reconciliation with the contributions due to the ocial ecurity nstitute

• Receivables for amounts that cannot be drawn on due to court rulings refer to amounts attached and not assigned to creditors, which are in the process of being recovered n January 2023, following the signing of a settlement agreement, the receivable of €12 million relating to sums embezzled from the Company in December 2007 as a result of an attempted fraud and held at a foreign bank was collected
• Accrued interest on IRES refund, refers to interest accruing up to 31 December 2023 in relation to the tax credit determined by an unreported deduction from the R tax base of RA paid on personnel expenses wo disputes have been initiated to recover said amount due (i.e., one under Law Decree no. 185/2008 and the other, under Law Decree no. 201/2011) brought before the rovincial ax ribunal of Rome, which upheld oste taliane's appeals, ordering the Agenzia delle ntrate in Rome to refund the amounts claimed he Agenzia delle ntrate appealed both rulings before the Regional ax ribunal which upheld the tax authorities' appeal against both of the rulings oste taliane has appealed these rulings before the upreme Court of Cassation On 5 July 2023, the judgement of the Court of Cassation in the case pursuant to Law Decree no 201/2011 was published, in which the most relevant grounds of oste taliane's appeal were upheld concerning the starting date of the interest accrued on the R credit resulting from the non-deduction of labour costs for RA purposes As a result of this ruling, the case will have to be resumed before the ax Court of econd nstance to settle the amount of interest actually due to the Group he judgement concerning Law Decree no 185/2008 is currently pending before the upreme Court of Cassation lements of uncertainty about the final outcome of the case are taken into account in the provision for doubtful debts due from others

Movements in the provisions for doubtful debts due from others are shown below:

(€m)	Balance at 01.01.2023	Net provisions	Uses	Balance at 31.12.2023
Interest accrued on IRES refund	44	(25)	-	19
Receivables relating to fixed-term contract settlements	24	-	-	24
Other receivables	84	(5)	(37)	42
Total	152	(30)	(37)	85
of which attributable to BancoPosta RFC	16	(3)	-	13

tab. A9.1 - Detailed provision for doubtful debts due from others

he provisions for doubtful debts due from others for interest income on R refunds shows a release of €25 million following the ruling of the upreme Court of Cassation in Law Decree no 201/2011

During the year under review, having ascertained the non-recoverability of certain prior items referring to labour costs, credit items were written off by using the provision

A10 – TAX CREDITS LAW NO. 77/2020 (€8,318 million)

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Tax credits at amortised cost	6,534	1,784	8,318	7,458	1,563	9,021	(703)
Total	6,534	1,784	8,318	7,458	1,563	9,021	(703)
of which attributable to BancoPosta RFC	6,246	1,665	7,911	7,127	1,473	8,600	(689)

tab. A10.1 - Movements in Tax Credits L.77/2020

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Tax credits at amortised cost	6,534	1,784	8,318	7,458	1,563	9,021	(703)
Total	6,534	1,784	8,318	7,458	1,563	9,021	(703)
of which attributable to BancoPosta RFC	6,246	1,665	7,911	7,127	1,473	8,600	(689)
his item refers to tax credits acquired by RFC for resources subject to and not subject to the restriction on their use, in accordance with the provisions of the Relaunch Decree (Law Decree no 34/2020 converted with amendments by Law no 77/2020) by which tax breaks were introduced to support Citizens and Businesses to encourage economic recovery following the Covid-19 health emergency hese receivables are measured at amortised cost as they are acquired to be used primarily for the purpose of offsetting social security or tax payables, based on the provisions of the regulations issued with reference to the characteristics of the individual receivables		oste taliane		pA against free capital resources or transferred to Banco osta
Changes in these tax credits during 2023 are shown below:
tab. A10.1 - Movements in Tax Credits L.77/2020
(€m)						Carrying amount
Balance at 1 January 2023							9,021
Purchases Changes in amortised cost Other changes							691 320 (1,714)
Balance at 31 December 2023							8,318
he main changes in the year under review refer to: • urchases of €691 million, of which €518 million pertaining to Banco osta RFC269F • accrued income for the year amounting to €320 million, of which €309 million pertaining to Banco osta RFC; • other changes of €1,714 million, of which €1,682 million related to offsets during the year					270;
At 31 December 2023, the fair value270F				271 of tax credits at amortised cost is €7,823 million
As part of the actions aimed at combating tax fraud perpetrated by third parties through the monetisation of tax credits, starting from the end of the 2021 financial year, a number of seizures that, in some cases also involved tax credits acquired by released from seizure during the course of 2022) for a total nominal value of approximately €530 million at the date of			ublic	rosecutors' Offices have implemented preventive oste taliane (some of which were subsequently
270 With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits.
271 In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 3.

• urchases of €691 million, of which €518 million pertaining to Banco osta RFC269F ²⁷⁰;
• accrued income for the year amounting to €320 million, of which €309 million pertaining to Banco osta RFC;
• other changes of €1,714 million, of which €1,682 million related to offsets during the year

²⁷⁰ With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits.

²⁷¹ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this

preparation of these financial statements, against a value paid of roughly €451 million

he Company has put in place an operational process aimed at constantly analysing the potential economic, financial and equity risks to which it could be exposed in the event that, following legal proceedings involving third parties, it is ascertained that part of the tax credits acquired over time are the result of fraudulent conduct perpetrated by the aforementioned third parties n particular, a legal and accounting analysis was conducted to generally assess said risks and determine the accounting impact related to these potential risks, making reference to the provisions of A 37 rovisions, Contingent Assets and Contingent Liabilities (as better illustrated in the section Use of estimates), as the possible non-recovery of the carrying amount of the tax credits would not derive from a characteristic of the asset being measured or from significant increases in the credit risk after the initial recognition of the asset or, more simply, from the ascertained default of the debtor, as envisaged by the impairment model set forth in FR 9, but rather from the possibility that, for those ascertained cases of fraud, the liability of the assignee - even if a third party in good faith or an offended party to the crime - will also be called to account for assumptions other than the possible irregular use of the tax credit or for a use in excess of the tax credit received On the basis of the analyses carried out of all facts and circumstances known at the date of preparation of these financial statements, including, inter alia, requests for information received from the authorities ( ublic rosecutor's Office and Agenzia delle ntrate) and orders issued by them, also with the support of external consultants, a provision of €80 million was recognised in the year 2023, bringing the provision - liability item " rovisions for risks and charges" - to €400 million

t should be noted, however, that the current situation of significant uncertainty as to the possible outcome of the proceedings and initiatives underway by the Judicial Authorities and the Agenzia delle ntrate and the actions undertaken by the Company to protect its interests, necessarily entailed the use of a significant degree of professional judgement in determining the aforesaid provision; therefore, it cannot be excluded that it may be necessary to recognise further charges in the future

A11 - CASH AND DEPOSITS ATTRIBUTABLE TO BANCOPOSTA (€4,671 million)

his item breaks down as follows:

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Cash and cash equivalents in hand	3,909	3,960	(51)
Bank deposits	762	1,888	(1,126)
Total	4,671	5,848	(1,177)

his item relates exclusively to Banco osta RFC assets

he cash and cash equivalents on hand are derived from deposits made in postal current accounts and postal savings products (subscription of postal savings bonds and payments into post office savings books), or from advances withdrawn from the tate reasury to guarantee the operations of post offices hese funds, which are held at ost Offices (€1,298 million) and at service271F ²⁷² companies (€2,611 million), may not be used for purposes other than to repay obligations contracted in the transactions described above ²⁷² They carry out transport and custody of valuables awaiting payment to the State Treasury. tab. A11 - Cash and deposits attributable to BancoPosta

A12 - CASH AND CASH EQUIVALENTS (€1,222 million)

his item breaks down as follows:

tab. A12 - Cash and cash equivalents

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Bank deposits and amounts held at the Italian Treasury	288	243	45
Deposits with the MEF	873	1,991	(1,118)
Cash and cash equivalents in hand	61	24	37
Total	1,222	2,258	(1,036)
of which attributable to BancoPosta RFC	935	2,017	(1,082)

Bank deposits and amounts held at the Italian Treasury include €195 million deposited by the Cabinet Office – ublishing Department in a non-interest bearing escrow account with the talian reasury as advance payment for publisher tariff subsidies due to the Company (note A8) n addition, bank deposits and amounts held at the talian reasury include €14 million whose use is restricted by court orders related to different disputes

he decrease in deposits with the MEF compared to the previous year is mainly due to a change in the allocation of loans, in order to optimise the yields on deposits

EQUITY

B1 - SHARE CAPITAL (€1,306 million)

he share capital consists of 1,306,110,000 no-par value ordinary shares, of which Cassa Depositi e restiti pA (CD ) holds 35% and the Ministry of the conomy and Finance holds 29 3%, while the remaining shares are held by institutional and retail investors

At 31 December 2023, the Company held 10,675,798 treasury shares (representing approximately 0 817% of the share capital) with a total value of approximately €94 million All the shares in issue are fully subscribed and paid up o preference shares have been issued

B2 – RESERVES (€1,549 million)

his item breaks down as follows:

tab. B2 - Reserves

(€m)	Legal reserve	Equity instruments - perpetual hybrid bonds	BancoPosta RFC reserve	Fair value reserve	Cash flow hedge reserve	Incentive plans reserve	Merger surplus/ deficit reserve	Total
Balance at 1 January 2022	299	800	1,210	1,192	(33)	13	5	3,486
Increase/(decrease) in fair value during the year	-	-	-	(4,608)	279	-	-	(4,329)
Tax effect of changes in fair value	-	-	-	1,292	(79)	-	-	1,213
Transfers to profit or loss	-	-	-	(150)	(409)	-	-	(559)
Tax effect of transfers to profit or loss	-	-	-	43	116	-	-	159
Increase/(decrease) for expected losses	-	-	-	4	-	-	-	4
Transfer of tax credits portfolio (net of tax effect)	-	-	-	93	-	-	-	93
Gains/(losses) recognised in equity	-	-	-	(3,326)	(93)	-	-	(3,419)
Merger contribution	-	-	-	(240)	-	-	330	90
Incentive plans	-	-	-	-	-	6	-	6
Balance at 31 December 2022	299	800	1,210	(2,374)	(126)	19	335	163
of which attributable to BancoPosta RFC	-	350	1,210	(2,092)	(130)	2	-	(660)
Increase/(decrease) in fair value during the year	-	-	-	1,940	80	-	-	2,020
Tax effect on changes in fair value	-	-	-	(553)	(23)	-	-	(576)
Transfers to profit or loss	-	-	-	222	(318)	-	-	(96)
Tax effect of transfers to profit or loss	-	-	-	(63)	90	-	-	27
Increase/(decrease) for expected losses	-	-	-	3	-	-	-	3
Gains/(losses) recognised in equity	-	-	-	1,549	(171)	-	-	1,378
Incentive plans	-	-	-	-	-	8	-	8
Balance at 31 December 2023	299	800	1,210	(825)	(297)	27	335	1,549
of which attributable to BancoPosta RFC	-	450	1,210	(544)	(295)	2	-	823

• he reserve for equity instruments-perpetual hybrid bonds27F ²⁷³ includes the perpetual hybrid bond with a non-call period of 8 years for institutional nvestors, with a total nominal value of €800 million, issued by oste taliane pA on 24 June 2021, with the aim of strengthening the Group's capital structure, and, in particular, Banco osta's Leverage Ratio (Basel ) and ier 1 ratio, as well as oste Vita's olvency ratio, thus helping to support the Group's longterm growth in accordance with the guidelines of the trategic lan During the year under review, there was another injection of capital into Banco osta RFC, via the granting of a €100 million perpetual subordinated loan with a 5-year non-call period, under terms and conditions that allow it to be counted as Additional ier 1 (hereafter "A 1") capital, designed to strengthen its leverage ratio

²⁷³ The main features of the issue are:

^– The bonds have no fixed maturity and must be redeemed only in the event of the dissolution or liquidation of the Company, as specified in the relevant terms and conditions, subject to the right of early redemption (call) in the cases provided for. Specifically, the call is scheduled to occur at any time from the First Call Date of 24 March 2029 through 24 June 2029 and on each interest payment date thereafter.

^– The fixed annual coupon is 2.625% until the first Reset Date set for 24 June 2029. From that date, the annual interest is determined on the basis of the 5-year Euro Mid Swap rate, plus an initial spread of 267.7 basis points, increased by a further 25 basis points from 24 June 2034 and by a further 75 basis points from 24 June 2049. Interest is payable at the option of the issuer and on a cumulative basis, commencing 24 June 2022. The issue price was set at 100%.

• the fair value reserve regards changes in the value of financial assets at fair value through other comprehensive income n 2023, the increase of €1,940 million in the fair value refers to:
  • a net increase of €1,938 million in financial assets measured at fair value through other comprehensive income and attributable to Banco osta RFC;
  • a net increase of €2 million in financial assets measured at fair value through other comprehensive income held outside the ring-fence
• the cash flow hedge reserve represents changes in the fair value of the effective portion of cash flow hedges outstanding n 2023, positive changes in fair value totalling €80 million related entirely to the net positive change in the value of Banco osta RFC's derivative financial instruments;
• the Incentive Plans reserve includes the estimate of the valuations for the year relating to the long-term " erformance hare L " and "Deliver" incentive plans and the MBO short-term incentive plans, carried out on the basis of the provisions of FR 2;
• the Merger Surplus/Deficit Reserve refers for €330 million to the merger surplus generated following the merger by incorporation into oste taliane pA of the subsidiary A rl in 2022

B3 - AVAILABILITY AND DISTRIBUTABILITY OF RESERVES

he following table shows the availability and distributability of oste taliane pA's reserves Retained earnings include the profit for 2023 of €1,390 million

During the year, dividends were distributed for a total of €877 million, based on the following resolutions:

• on 8 May 2023, the hareholders' Meeting resolved the distribution dividends of €570 million (dividend per share equal to €0 440), which took place on 21 June 2023 as the balance for 2022, taking into account the interim dividend of €273 million (dividend per share equal to €0 210) already paid in ovember 2022;
• on 6 ovember 2023, oste taliane's Board of Directors, in line with the Group's dividend policy, resolved to advance part of the ordinary dividend for 2023 as an interim dividend he interim dividend of €307 million was distributed on 22 ovember 2023 (dividend per share of €0 237)

(€m)	31.12.2023	Potential use
Share capital	1,306
Treasury shares	(94)
Reserves
- legal reserve	299
legal reserve	261	B
legal reserve	38	A B D
- BancoPosta RFC reserve	1,210	- -
- equity instruments reserve - perpetual hybrid bonds	800	- -
- fair value reserve	(825)	- -
- cash flow hedge reserve	(297)	- -
- incentive plans reserve	27	- -
- merger surplus	335	A B D
Retained earnings / (Accumulated losses)	2,892
retained earnings / (accumulated losses)	65	- -
retained earnings - BancoPosta RFC	1,437	C
retained earnings / (accumulated losses)	1,471	A B D
unrealised gains/(losses) on financial instruments at FVTPL net of tax effect	19	B C
after-tax actuarial gains/(losses)	(100)	- -
Total	5,653
of which distributable	1,844

tab. B3 - Availability and distributability of reserves

A: for capital increases

B: to cover losses

C: to cover BancoPosta losses

D: for shareholder distributions

LIABILITIES

B4 - PROVISIONS FOR RISKS AND CHARGES (€1,228 million)

Movements in provisions for risks and charges are as follows:

tab. B4 - Movements in provisions for risks and charges

Movements in provisions for risks and charges for FY 2023

Description (€m)	Balance at 01.01.2023	Provisions		Finance costs Released to profit or loss	Uses	Balance at 31.12.23
Provisions for operational risks	109	5	-	(7)	(12)	95
Provisions for disputes with third parties	265	14	3	(33)	(40)	209
Provisions for disputes with staff (1)	34	12	-	-	(8)	38
Provisions for personnel expenses	101	121	-	(31)	(60)	131
Provisions for early retirement incentives	352	158	-	-	(227)	283
Provisions for risks - tax credits Law no. 77/2020	320	80	-	-	-	400
Provisions for taxation	4	1	-	-	-	5
Other provisions for risks and charges	72	2	-	(1)	(6)	67
Total	1,257	393	3	(72)	(353)	1,228
of which attributable to BancoPosta RFC	188	7	1	(15)	(18)	163
Overall analysis of provisions:
- non-current portion	741					718
- current portion	516					510
	1,257					1,228

(1) et provisions for ersonnel expenses amount to €9 million. Service costs (legal assistance) total €3 million.

Specifically:

• Provisions for operational risks, which relate to liabilities arising from Banco osta's operations, mainly reflect risks related to the distribution of postal savings products issued in past years, estimated risks for charges and expenses to be incurred as a result of foreclosures suffered by Banco osta mainly in its capacity as a third party, impairments and adjustments to income from previous years and fraud Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled
• Provisions for disputes with third parties regard the present value of expected liabilities deriving from different types of legal and out-of-court disputes with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers Movements during the year primarily regard updated estimates of liabilities and uses to cover liabilities settled
• Provisions for disputes with staff regard liabilities that may arise following labour litigation and disputes of various types he changes in the year refer to the update of the estimate of the liabilities and the related legal expenses, taking account of both the overall value of negative outcomes in terms of litigation
• Provisions for personnel expenses are made to cover expected liabilities arising in relation to the cost of labour, which are certain or likely to occur but whose estimated amount is subject to change hey have increased by €121 million during the year to reflect the estimated value of new liabilities and decreased as a result of past contingent liabilities that failed to materialise (€31 million) and settled disputes (€60 million)
• Provisions for early retirement incentives reflect the estimated costs to be incurred as a result of the Company's bonding commitment to pay early retirement incentives on a voluntary basis, under the current redundancy scheme agreed with the labour unions for a determinate number of employees who will leave the Company by 31 December 2025 he provisions made at 31 December 2022 were utilised for €227 million
• he provisions for risks - tax credits Law no. 77/2020 were established to cover probable liabilities analytically described in ote A10 - Tax Credits Law no. 77/2020
• Other provisions for risks and charges cover probable liabilities of various type, including: estimated liabilities deriving from the risk that specific legal actions undertaken in order to reverse seizures of the Company's assets may

be unable to recover the related amounts, claims for rent arrears on properties used free of charge by the Company, claims for payment of accrued interest expense due to certain suppliers and fraud, and probable tax risks

B5 - EMPLOYEE TERMINATION BENEFITS (€608 million)

Movements in employee termination benefits are as follows:

tab. B5 - Movements in provisions for employee termination benefits

(€m)	FY 2023
Balance at 1 January	678
interest component 25
effect of actuarial gains/(losses) 8
Provisions for the year	33
Uses for the period	(103)
Balance at 31 December	608
of which attributable to BancoPosta RFC	2

he interest component is recognised in finance costs he current service cost, which from 2007 is paid to pension funds or third-party social security agencies and is no longer included in the employee termination benefits managed by the Company, is recognised in personnel expenses et uses of provisions for employee termination benefits amount to €101 million and €2 million for substitute tax

Actuarial gains and losses are generated by the following factors:

tab. B5.1 - Actuarial gains and losses

(€m)	31.12.2023
Change in demographic assumptions Change in financial assumptions Other experience-related adjustments	- 14 (6)
Total	8

he sensitivity of employee termination benefits to changes in the principal actuarial assumptions is analysed below:

tab. B5.2 - Sensitivity analysis (€m) Inflation rate +0.25% 615 Inflation rate -0.25% 602 Discount rate +0.25% 598 Discount rate -0.25% 619 Turnover rate +0.25% 610 Turnover rate -0.25% 606 Employee termination benefits at 31.12.2023

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

tab. B5.3 - Other information

	31.12.2023
Expected service cost	-
Average duration of defined benefit plan	7.60
Average employee turnover	2.00%

B6 - FINANCIAL LIABILITIES (€96,863 million)

tab. B6 - Financial liabilities
Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Financial liabilities at amortised cost	8,698	87,027	95,725	9,777	93,951	103,728	(8,003)
Derivative financial instruments	1,091	47	1,138	823	152	975	163
Total	9,789	87,074	96,863	10,600	94,103	104,703	(7,840)
of which attributable to BancoPosta RFC	7,571	84,968	92,539	7,932	92,512	100,444	(7,905)
of which Capital outside the ring-fence	2,218	2,106	4,324	2,668	1,591	4,259	65

F A C AL L AB L A R BU ABL O BA CO O A RFC

Financial liabilities attributable to BancoPosta RFC

		Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Financial liabilities at amortised cost	6,480	84,921	91,401	7,109	92,360	99,469	(8,068)
Postal current accounts		- 72,797	72,797	-	78,004	78,004	(5,207)
Loans	6,480	1,736	8,216	7,109	3,016	10,125	(1,909)
Due to financial institutions	6,480	1,736	8,216	7,109	3,016	10,125	(1,909)
MEF account held at the Treasury		- 5,371	5,371	-	4,168	4,168	1,203
Other financial liabilities		- 5,017	5,017	-	7,172	7,172	(2,155)
Derivative financial instruments(1)	1,091	47	1,138	823	152	975	163
Cash flow hedges	530	(12)	518	490	137	627	(109)
Fair value hedges	558	59	617	333	11	344	273
Fair value through profit or loss	3	-	3	-	4	4	(1)
Total	7,571	84,968	92,539	7,932	92,512	100,444	(7,905)

(1) In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.

ostal current accounts

hese payables include net amounts accrued at 31 December 2023 and settled with customers in January 2024 he balance includes amounts due to oste taliane Group companies, totalling €10,912 million, of which €10,152 million relating to postal current accounts held by oste ay pA relating primarily to customer current account deposits from prepaid cards and €695 million represented by postal current accounts held by oste Vita pA he decrease in this item with respect to 31 December 2022 is mainly due to the reduction in ublic Administration stocks

Loans

Due to financial institutions

At 31 December 2023, outstanding liabilities of €10,553 million relate to repurchase agreements entered into by the Company with leading financial institutions and Central Counterparties, amounting to a total nominal value of securities committed for €11,456 million A total of €7,102 million of this amount regards Long erm Repos and €3,451 million regards ordinary loan operations, the resources from both invested in talian fixed income government securities and as funding for deposits used as collateral At 31 December 2023, repurchase agreements with a nominal value of €3,996 million are the subject of fair value hedge transactions executed to hedge interest rate risk

Finally, financial assets and liabilities relating to repurchase agreements managed through the Central Counterparty that meet the requirements of A 32 are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022) At 31 December 2023, the fair value273F 274 of the above payables amounts to €7,996 million

M F account held at the reasury

		Balance at 31.12.2023				Balance at 31.12.2022
Description (€m)	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Balance of cash flows for advances	-	5,168	5,168	-	4,083	4,083	1,085
Balance of cash flows from management of postal savings	-	30	30	-	(84)	(84)	114
Amounts payable due to theft	-	157	157	-	155	155	2
Amounts payable for operational risks	-	16	16	-	14	14	2
Total	-	5,371	5,371	-	4,168	4,168	1,203

		Balance at 31.12.2023		Balance at 31.12.2022			Changes
Description (€m)	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Balance of cash flows for advances	-	5,168	5,168	-	4,083	4,083	1,085
Balance of cash flows from management of postal savings	-	30	30	-	(84)	(84)	114
Amounts payable due to theft Amounts payable for operational risks	- -	157 16	157 16	- -	155 14	155 14	2 2
Total	-	5,371	5,371	-	4,168	4,168	1,203
he balance of cash flows for advances, represents the net amount payable as a result of advances from the M F to meet the cash requirements of Banco osta		hese break down as follows:
tab. B6.1.1 - Balance of cash flows for advances		Balance at 31.12.2023			Balance at 31.12.2022		Changes
Description	Non-current	Current		Non-current	Current
(€m)	liabilities	liabilities	Total	liabilities	liabilities	Total
Net advances	-	5,167	5,167		- 4,083	4,083	1,084
MEF postal current accounts and other payables	-	670	670		- 670	670	-
Ministry of Justice - Orders for payment	-	1	1		- -	-	1
MEF - State pensions	-	(670)	(670)		- (670)	(670)	-
Total	-	5,168	5,168	-	4,083	4,083	1,085
due from the M F for nterest-bearing Amounts payable due to thefts from the talian reasury for losses resulting from theft and fraud		ostal Certificates issued on its behalf			ost Offices of €157 million regard the Company's liability to the M F on behalf of his liability derives from cash withdrawals from the reasury
to make up for the losses resulting from these criminal acts, in order to ensure that post offices can continue to operate
Amounts payable for operational risks for €16 million regard the portion of advances obtained to fund the operations of
Banco osta, in relation to which asset under recovery is certain or probable
Derivative financial instruments
Movements of the item during 2023 are described in note A6 – Financial assets
274 In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.

Derivative financial instruments

Other financial liabilities

tab. B6.2 - Other financial liabilities

		Balance at 31.12.2023			Balance at 31.12.2022
Description (€m)	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
guarantee deposits	-	2,831	2,831	-	4,824	4,824	(1,993)
domestic and international money transfers	-	1,071	1,071	-	1,108	1,108	(37)
endorsed cheques	-	408	408	-	476	476	(68)
cashed cheques	-	230	230	-	183	183	47
other amounts payable to third parties	-	139	139	-	173	173	(34)
amounts to be credited to customers	-	109	109	-	104	104	5
payables for items in process	-	229	229	-	304	304	(75)
Total	-	5,017	5,017	-	7,172	7,172	(2,155)

Payables for guarantee deposits refer for €2,811 million to sums received from counterparties for interest rate swap transactions (collateral provided by specific Credit upport Annexes) and for €20 million to sums received from counterparties for repo transactions (collateral provided by specific Global Master Repurchase Agreements) he decrease in this item compared to 31 December 2022 is mainly attributable to the reduction of fair value hedge derivatives following early extinguishment transactions

F A C AL L AB L OU D R G-F C

Financial Liabilities outside ring-fence

		Balance at 31.12.2023			Balance at 31.12.2022		Changes
Description (€m)	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Financial liabilities at amortised cost	2,218	2,106	4,324	2,668	1,591	4,259	65
Loans Bonds Due to financial institutions	1,446 498 948	502 500 2	1,948 998 950	1,820 997 823	53 51 2	1,873 1,048 825	75 (50) 125
Lease payables	772	260	1,032	844	257	1,101	(69)
Financial liabilities due to subsidiaries	-	1,340	1,340	-	1,281	1,281	59
Other financial liabilities	-	4 ,	4	4	-	4	-
Total	2,218	2,106	4,324	2,668	1,591	4,259	65

(1) In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.

Loans

Loans are unsecured and are not subject to financial covenants, which would require the company to comply with economic and financial ratios For the B financing and the C B financing, a minimum rating level of BBB- (or equivalent) by Moody's and & for the B and by at least two of the three rating agencies of oste taliane for C B is required n the event of a rating loss, this is without prejudice to the right of both banks to request additional collateral or, in the case of the B, an increase in the margin f no agreement is reached, immediate early repayment of the loans may be demanded tandard negative pledge provisions do apply, however274F 275

Bonds

he item Bonds refers to a senior unsecured loan with a total nominal value of €1 billion issued by oste taliane on 10 December 2020 in two tranches, placed in public form to institutional investors as part of the €2 5 billion uro Medium erm otes ( M ) programme deposited with the Luxembourg tock xchange he first tranche of €500 million matures on 10 December 2024, has an above-par issue price of 100 10 with fixed annual coupon of 0 00% and an effective yield to

²⁷⁵ A commitment given to creditors by which a borrower undertakes not to give senior security or other restrictions on assets to other lenders ranking pari passu with creditors, unless the same degree of protection is also offered to them.

maturity of -0 025%; the second tranche of €500 million matures on 10 December 2028, with an issue price below par of 99 758, a fixed annual coupon of 0 50% and an effective yield to maturity of 0 531% At 31 December 2023, the fair value275F 276 of the loan was €916 million

A loan with a nominal value of €50 million, privately placed and issued at par on 25 October 2013 reached maturity in October 2023 he interest rate risk exposure was hedged as described in note A6 – Financial assets

Due to financial institutions

Description (€m)		Balance at 31.12.2023			Balance at 31.12.2022
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
EIB fixed rate loan maturing 12/03/26	173	-	173	173	-	173	-
EIB fixed rate loan maturing 16/10/2026	400	-	400	400	-	400	-
EIB fixed rate loan maturing 19/05/2028	150	-	150	150	-	150	-
EIB fixed rate loan maturing 02/05/28	100	-	100	100	-	100	-
CEB variable rate loan maturing 28/12/30	125	-	125	-	-	-	125
Other Payables and Accrued Interest	-	2	2	-	2	2	-
Total	948	2	950	823	2	825	125

TF: Fixed-rate loan; TV: Variable-rate loan

At 31 December 2023, no committed and uncommitted credit lines were used for short-term financing

On 18 December 2023, a medium-/long-term credit line for a total of €250 million was signed with the C B "Council of urope Development Bank", to support projects and investments with the aims of social integration, support for public infrastructure and sustainability On 28 December 2023, the first tranche of €125 million was disbursed, bearing interest at a variable rate (6-month uribor rate plus spread), with repayment in constant principal instalments after a three-year grace period and maturity on 28 December 2030

At 31 December 2023, the fair value276F ²⁷⁷ of the four B loans was €778 million and that of the C B loan was €128 million he amount of the other financial liabilities in the table - Financial liabilities outside ring-fence approximates their fair value

Committed and uncommitted credit lines outstanding at 31 December 2023 are discussed in ote 6 - Risk management.

Lease payables

Lease liabilities at 31 December 2023 amounted to €1,031 million For more details on the change in this item, see ote A4 - Right-of-use assets

Derivative financial instruments

Movements of the item during 2023 are described in note A6 – Financial assets

Financial liabilities due to subsidiaries

hese liabilities relate to intercompany current accounts paying interest at market rates and break down as follows:

²⁷⁶ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 1.

²⁷⁷ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 2.

tab. B6.4 - Financial liabilities due to subsidiaries

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Direct subsidiaries
BancoPosta Fondi SpA SGR EGI SpA MLK Deliveries SpA Nexive Network Srl Nexive Scarl PatentiViaPoste ScpA Poste Vita SpA Postel SpA PostePay SpA SDA Express Courier SpA	30 9 8 5 6 16 247 - 855 -	30 21 4 - 6 13 190 6 915 24	- (12) 4 5 - 3 57 (6) (60) (24)
Poste Welfare Servizi Srl	14	8	6
Indirect subsidiaries LIS Holding Spa LIS Pay Spa Poste Assicura SpA Kipoint SpA	85 63 - 2	50 - 4 1	35 63 (4) 1
Associates sennder Italia Srl	-	9	(9)
Total	1,340	1,281	59

Changes in liabilities arising from financing activities

he following disclosures are provided in accordance with A 7, following the amendments introduced by U Regulation 1990/2017 of 6 ovember 2017

tab. B6.5 - Changes in liabilities arising from financing activities

Description (€m)	Balance at 01.01.2023	Net cash flow from/(for) financing activities	Non-cash flows	Balance at 31.12.2023
Loans Bonds	1,873 1,048	74 (50)	1 -	1,948 998
Due to financial institutions Lease payables	825 1,101	124 (243)	1 174	950 1,032
Financial liabilities due to subsidiaries	1,281	59	-	1,340
Other financial liabilities	4	-	-	4
Total	4,259	(110)	175	4,324

et debt/(funds)

he following table shows the net debt/(funds) at 31 December 2023:

Net debt/(funds) at 31 December 2023

Balance at 31.12.2023 (€m)	Capital outside ring fence	BancoPosta RFC		Eliminations Poste Italiane SpA	of which related parties
Financial liabilities	4,690	92,818	(645)	96,863
Postal current accounts	-	73,076	(279)	72,797	10,912
Bonds	998	-	-	998	-
Due to financial institutions	950	8,216	-	9,166	-
Lease payables	1,032	-	-	1,032	51
MEF account held at the Treasury	-	5,371	-	5,371	5,371
Derivative financial instruments	-	1,138	-	1,138	201
Other financial liabilities	1,344	5,017	-	6,361	221
Intersegment financial liabilities	366	-	(366)	-	-
Financial assets	(1,062)	(80,576)	366	(81,272)
Financial instruments at amortised cost	(417)	(42,858)	-	(43,275)	12,476
Financial instruments at FVTOCI	(636)	(33,069)	-	(33,705)	-
Financial instruments at fair value through profit or loss	(9)	(26)	-	(35)	-
Derivative financial instruments	-	(4,257)	-	(4,257)	167
Intersegment financial assets	-	(366)	366	-	-
Tax credits Law no. 77/2020	(407)	(7,911)	-	(8,318)	-
Net liabilities/(net financial assets)	3,221	4,331	(279)	7,273
Cash and deposits attributable to BancoPosta	-	(4,671)	-	(4,671)	-
Cash and cash equivalents	(564)	(937)	279	(1,222)	874
Net debt/(funds)	2,657	(1,277)	-	1,380

Net debt/(funds) at 31 December 2022

Balance at 31.12.2022 (€m)	Capital outside ring fence	BancoPosta RFC		Eliminations Poste Italiane SpA	of which related parties
Financial liabilities	4,608	100,672	(576)	104,704
Postal current accounts	-	78,231	(227)	78,004	9,668
Bonds	1,048	-	-	1,048	-
Due to financial institutions	825	10,125	-	10,950	-
Lease payables	1,101	-	-	1,101	44
MEF account held at the Treasury	-	4,169	-	4,169	4,169
Derivative financial instruments	-	975	-	975	193
Other financial liabilities	1,285	7,172	-	8,457	1,504
Intersegment financial liabilities	349	-	(349)	-	-
Financial assets	(904)	(83,642)	349	(84,197)
Financial instruments at amortised cost	(368)	(43,982)	-	(44,350)	(15,284)
Financial instruments at FVOCI	(536)	(33,161)	-	(33,697)	-
Financial instruments at fair value through profit or loss	-	(40)	-	(40)	-
Derivative financial instruments	-	(6,110)	-	(6,110)	(203)
Intersegment financial assets	-	(349)	349	-	-
Tax credits Law no. 77/2020	(421)	(8,600)	-	(9,021)	-
Liabilities/(net financial assets)	3,283	8,430	(227)	11,486
Cash and deposits attributable to BancoPosta	-	(5,848)	-	(5,848)	-
Cash and cash equivalents	(469)	(2,016)	227	(2,258)	(1,991)
Net debt/(funds)	2,814	566	-	3,380

he total Net debt/(funds)27F ²⁷⁸ of the Company at 31 December 2023, as shown above, presents a debt of €1,380 million, an improvement of €2,000 compared to the values at 31 December 2022 (debt of €3,380 million) he change is mainly attributable to the profit for the period of €1,390 million, the positive valuation effects of investments classified in the FV OC category for approximately €1 9 billion, net of the cash absorption generated by the distribution of dividends totalling €877 million (of which €570 million for the balance of dividend 2022 and €307 million for interim dividend 2023) and the cash absorption generated by the increase in working capital of approximately €150 million

²⁷⁸ The Net debt/(funds) includes Tax Credits whose value at 31 December 2023 was €8,318 million. Although these credits derive from business activities and are classified in the financial statements under other assets, in order to improve the representation of the indicator in question, they can be assimilated to financial assets.

At 31 December 2023, the financial debt outside the ring-fence, calculated in accordance with MA Guidelines 32-382-

1138, is provided below:

ESMA net financial indebtedness for capital outside ring-fence

(€m)	As at 31 December 2023	As at 31 December 2022
A. Cash	(564)	(469)
B. Cash equivalents	-	-
C. Other current financial assets	(61)	(29)
D. Liquidity (A+B+C)	(625)	(498)
E. Current financial debt (including debt instruments, but excluding the current portion of non current financial debt)	2,105	1,590
F. Current portion of non-current debt	1	1
G. Current financial debt (E+F)	2,106	1,591
H. Net current financial debt (G + D)	1,481	1,093
I. Non-current financial debt (excluding current portion and debt instruments)	1,720	1,671
J. Debt instruments	498	997
K. Trade payables and other non-current payables	15	18
L. Non-current financial debt (I + J + K)	2,233	2,686
M. Total financial debt (H + L)	3,714	3,779

Reconciliation of financial debt ESMA

(€m)	As at 31 December 2023	As at 31 December 2022
M. Total financial debt (H + L)	3,714	3,779
Non-current financial assets	(1,001)	(875)
K. Trade payables and other non-current payables	(15)	(18)
Tax credits Law no. 77/2020	(407)	(421)
Net industrial financial position	2,291	2,465
Intersegment financial (receivables)/payables	366	349
Industrial net debt for capital outside ring-fence including intersegment transactions	2,657	2,814

B7 - TRADE PAYABLES (€1,967 million)

tab. B7 - Trade payables

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Due to suppliers	1,018	1,047	(29)
Due to subsidiaries and associates	444	422	22
Contract liabilities	505	501	4
Total	1,967	1,970	(3)
of which attributable to BancoPosta RFC	133	182	(49)

Due to suppliers

tab. B7.1 - Due to suppliers

Description	Balance at	Balance at	Changes
(€m)	31.12.2023	31.12.2022
Italian suppliers	870	858	12
Foreign suppliers	13	16	(3)
Overseas counterparties (*)	135	173	(38)
Total	1,018	1,047	(29)
of which attributable to BancoPosta RFC	8	8	-

(*) he amount due to overseas counterparties relates to fees payable to overseas postal operators and companies in return for postal and telegraphic services received

Due to subsidiaries and associates

tab. B7.2 - Due to subsidiaries and associates

Name (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Direct subsidiaries
Agile Lab (1) BancoPosta Fondi SpA SGR CLP ScpA Consorzio servizi ScpA (2) MLK Deliveries SpA Poste Vita SpA Postel SpA PostePay SpA Poste Welfare Servizi Srl SDA Express Courier SpA	2 3 112 19 6 2 16 85 13 176	- 3 100 14 9 2 17 123 4 145	2 - 12 5 (3) - (1) (38) 9 31
Sourcesense SpA Indirect subsidiaries	4	1	3
Address Software Srl Bridge Technologies Srl Kipoint SpA Poste Assicura SpA	1 2 3 -	1 - 2 1	- 2 1 (1)
Total	444	422	22
of which attributable to BancoPosta RFC	65	105	(40)

(1) Agile ower rl was merged into Agile Lab rl effective for legal purposes from 1 December 2023

(2) he company Consorzio per i ervizi di elefonia Mobile cpA changed its name to Consorzio ervizi cpA; the change was registered in the Company Register of Rome on 29 March 2023

hese trade payables include:

• DA xpress Courier pA: mainly for the pick-up, sorting and delivery service of national and international express products
• oste ay pA: mainly for collection and payment services under the service contract (€61 million) and for acquiring services (€22 million)

Contract liabilities

tab. B7.3 - Contract liabilities

Description (€m)	Balance at 01.01.2023	Increases / (Decreases)	Change due to recognition of revenue for period	Balance at 31.12.2023
Prepayments and advances from customers	433	12	-	445
Liabilities for fees to be refunded	68	(50)	42	60
Total	501	(38)	42	505
of which attributable to BancoPosta RFC	68	(50)	42	60

Advances from customers

his item refers to amounts received from customers as prepayment for the following services to be rendered:

tab. B7.3.1 - Prepayments and advances from customers

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022	Changes
Prepayments from overseas counterparties	179	223	(44)
Advances for Publishing from PCM [tab.A8.1]	195	125	70
Advances for shipments	59	67	(8)
Advances for other services	12	18	(6)
Total	445	433	12
of which attributable to BancoPosta RFC	-	-	-

Liabilities for fees to be refunded represent the estimated liability linked to the refund of fees on loan products sold after

1 January 2018, under the terms of which the related fees must be refunded if the customer opts for early cancellation of the agreement

B8 - OTHER LIABILITIES (€3,360 million)

tab. B8 - Other liabilities

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022			Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Due to staff	5	654	659	5	694	699	(40)
Social security payables	16	417	433	19	423	442	(9)
Other taxes payable	1,752	324	2,076	1,738	171	1,909	167
Other amounts due to subsidiaries	1	23	24	1	146	147	(123)
Sundry payables	15	15	30	12	19	31	(1)
Accrued liabilities and deferred income	136	2	138	132	2	134	4
Total	1,925	1,435	3,360	1,907	1,455	3,362	(2)
of which attributable to BancoPosta RFC	1,752	227	1,979	1,738	80	1,818	161

Due to staff

hese items primarily regard accrued amounts that have yet to be paid at 31 December 2023 he breakdown is as follows:

tab. B8.1 - Due to staff

Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022	Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Fourteenth month salaries	-	202	202	-	198	198	4
Incentives	5	366	371	5	402	407	(36)
Accrued vacation pay	-	38	38	-	37	37	1
Other amounts due to staff	-	48	48	-	57	57	(9)
Total	5	654	659	5	694	699	(40)
of which attributable to BancoPosta RFC	-	5	5	-	5	5	0

he decrease in this item compared to the year 2022 is mainly attributable to the extraordinary component due to lower early retirement incentives

ocial security payables

tab. B8.2 - Social security payables

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
INPS	1	320	321	1	319	320	1
Pension funds	-	84	84	-	87	87	(3)
Health funds	-	5	5	-	5	5	-
INAIL	15	4	19	18	4	22	(3)
Other agencies	-	4	4	-	8	8	(4)
Total	16	417	433	19	423	442	(9)
of which attributable to BancoPosta RFC	-	3	3	-	3	3	-

Other taxes payable

tab. B8.3 - Other taxes payable

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Withholding tax on employees' and consultants' salaries	-	87	87	-	82	82	5
Withholding tax on postal current accounts	-	74	74	-	29	29	45
Stamp duty payable	1,752	129	1,881	1,738	21	1,759	122
Other taxes due	-	34	34	-	39	39	(5)
Total	1,752	324	2,076	1,738	171	1,909	167
of which attributable to BancoPosta RFC	1,752	216	1,968	1,738	68	1,806	162

he stamp duty payable includes the balance due to the reasury for the tax paid virtually in the financial year 2023 he non-current portion of stamp duty payable primarily regards the amount due at 31 December 2023 on interest-bearing postal certificates in circulation, in compliance with the legislation referred to in note A9 – Other receivables and assets

Other amounts due to subsidiaries

his item mainly includes the amount payable to subsidiaries by oste taliane pA, as the consolidating entity in the tax consolidation arrangement ( ote 2 5 – Material information on accounting standards), to whom the subsidiaries have transferred tax assets in the form of payments on account, withholding taxes and taxes paid overseas, after deducting R payable to the arent Company by the subsidiaries, and the benefit connected with the tax loss contributed by the subsidiary ostel pA in 2023 he decrease compared to the year 2022 is mainly due to oste Vita pA, which had a debit balance with the tax authorities at 31 December 2023

undry payables

his item ayables breaks down as follows:

tab. B8.5 - Sundry payables

Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022	Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Sundry payables attributable to BancoPosta	-	3	3	-	5	5	(2)
Guarantee deposits	15	-	15	12	-	12	3
Other payables	-	12	12	-	14	14	(2)
Total	15	15	30	12	19	31	(1)
of which attributable to BancoPosta RFC	-	3	3	-	5	5	(2)

Accrued liabilities and deferred income

2023 Annual Report

tab. B8.6 - Accrued liabilities and deferred income
Description (€m)	Balance at 31.12.2023			Balance at 31.12.2022			Changes
	Non-current liabilities	Current liabilities	Total	Non-current liabilities	Current liabilities	Total
Deferred income	136	2	138	132	2	134	4
Total	136	2	138	132	2	134	4
of which attributable to BancoPosta RFC	-	-	-	-	-	-	-

he item Accrued liabilities and deferred income refers for €124 million to the non-repayable grant received in advance by the Company for the realisation of the " olis roject - Home of Digital ervices"

5.4 NOTES TO THE STATEMENT OF PROFIT OR LOSS

C1 - REVENUE FROM SALES AND SERVICES (€9,880 million)

tab. C1 - Revenue from sales and services

Description (€m)	FY 2023	FY 2022	Changes
Postal Services	3,149	3,112	37
of which Revenue from contracts with customers	3,149	3,112	37
recognised at a point in time	331	351	(20)
recognised over time	2,818	2,761	57
BancoPosta services	6,379	5,467	912
of which Revenue from contracts with customers	3,677	3,459	218
recognised at a point in time	231	233	(2)
recognised over time	3,446	3,226	220
Other sales of goods and services	352	325	27
of which Revenue from contracts with customers	352	325	27
recognised at a point in time	12	25	(13)
recognised over time	340	300	40
Total	9,880	8,904	976

Revenue from contracts with customers breaks down as follows

Revenue from ostal ervices

tab. C1.1 - Revenue from Postal Services

Description	FY	FY	Changes
(€m)	2023	2022
Mail	1,744	1,748	(4)
Parcels	1,078	1,041	37
Philately	10	7	3
Total external revenue	2,832	2,796	36
Universal Service compensation	262	262	-
Publisher tariff subsidies	55	54	1
Total revenue	3,149	3,112	37

External revenue showed an increase compared to the financial year 2022, mainly due to revenue from the parcel segment, despite the expected structural decrease in revenue from traditional mail

Universal Service compensation relates to amounts paid by the M F to cover the costs of fulfilling the U O Annual compensation, amounting to €262 million, is established in the 2020-2024 Contratto di rogramma ( ervice Contract) in force on 1 January 2020

Publisher tariff subsidies278F ²⁷⁹ relate to the amount receivable by the Company from the Cabinet Office - ublishing Department as compensation for the discounts applied to publishers and non-profit organisations when sending mail he compensation is determined on the basis of the tariffs set in the decree issued by the Ministry of nterprise and Made in taly (former Mi ) in agreement with the Ministry of the conomy and Finance, on 21 October 2010 and Law

²⁷⁹ Law no. 8 of 28 February 2020 - ordered that reimbursements of publishing tariff subsidies to Poste Italiane continue "for a duration equal to that of the universal postal service" (i.e. until April 2026). The application of the regulation is subject to approval by the European Commission.

Decree 63 of 18 May 2012, as converted into Law 103 of 16 July 2012 With AGCom Resolution 454/22/CO of 30 December 2022, the new universal basic tariffs of the subsidised publishing products included in the Universal ervice were defined he Resolution provided for a gradual increase in the basic tariffs with a consequent increase in the compensation received by the Company per item sent at a subsidised rate he amount of subsidies that the Company has granted is covered in the 2023 tate Budget

Banco osta services

Description (€m)	FY 2023	FY 2022	Changes
Income from investment of postal current account deposits and free cash	2,702	2,008	694
Fees for collection of postal savings deposits	1,740	1,600	140
Insurance brokerage	623	538	85
Other revenue from current account services	428	431	(3)
Distribution of payment products and services	251	251	-
Commissions on payment of bills by payment slip	208	216	(8)
Distribution of loan products	191	226	(35)
Distribution of investment funds	94	70	24
Income from delegated services	91	89	2
Money transfers	17	13	4
Other products and services	34	25	9
Total	6,379	5,467	912

pecifically:

• Income from investment of postal current account deposits and free cash breaks down as follows:

tab. C1.2.1 - Income from investment of postal current account deposits and free cash

Description (€m)		FY 2023	FY 2022	Changes
	Income from investment of postal current account deposits and free cash	2,702	2,008	694
	Fees for collection of postal savings deposits	1,740	1,600	140
	Insurance brokerage	623	538	85
	Other revenue from current account services	428	431	(3)
	Distribution of payment products and services	251	251	-
	Commissions on payment of bills by payment slip	208	216	(8)
	Distribution of loan products	191	226	(35)
	Distribution of investment funds	94	70	24
	Income from delegated services	91	89	2
	Money transfers	17	13	4
	Other products and services	34	25	9
Total		6,379	5,467	912
	Income from investment of postal current account deposits and free cash breaks down as follows:
	tab. C1.2.1 - Income from investment of postal current account deposits and free cash Description	FY	FY
(€m)		2023	2022	Changes
	Income from investments in securities	1,962	1,482
	Interest income on securities at amortised cost	780	677
	Interest income on securities at FVTOCI	936	821
	Interest income (expense) on asset swaps of CFH on securities at FVTOCI and CA	5	20
	Interest income (expense) on asset swaps of FVH on securities at FVTOCI and CA Interest income on repurchase agreements	171 70	(79) 43
	Income from investments in tax credits Interest income on tax credits at AC	309 309	273 189	480 103 115 (15) 250 27 36 120
	Interest income on tax credits at FVTOCI	-	84	(84)
	Income from deposits held with the MEF	446	252	194
	Remuneration of current account deposits (deposited with the MEF)	441	323
	Differential on derivatives stabilising returns	5	(71)
	Portion of interest income on own liquidity (finance income)	(15)	(1)	118 76 (14)
	Other income	-	2	(2)
	Total	2,702	2,008	694
	he increase in this item compared to the previous year is mainly attributable to the income from investments in
	securities and the income from deposits held with the M F
	Income from investments in securities relates to interest earned on investment of deposits paid into postal current
	accounts by private customers he amount of income includes the impact of the interest rate hedge this item compared to financial year 2022 was mainly due to the effects of the upward shift in the interest rate curve,			he increase in

which had a positive effect on the differentials exchanged in fair value hedge transactions, and to the higher profitability of both the new securities that entered the portfolio in financial year 2023, and those subject to the broader restructuring of fair value hedges as described in ote A6 - Financial assets

Income from investments in tax credits relates to interest accrued during the year on the investments described in ote A10 - Tax Credits Law no. 77/2020

Income from deposits held with the MEF primarily represents accrued interest for the year on amounts deposited at ublic Administration entities, remunerated at a variable rate as described in ote A6 - Financial assets he increase compared to 31 December 2022 is mainly due to the rise in the interest rate curve

• Fees for the collection of postal savings deposits relates to remuneration for the provision and redemption of nterest-bearing ostal Certificates and payments into and withdrawals from ostal avings Books his service is provided by oste taliane pA on behalf of Cassa Depositi e restiti he increase in this item reflects the consideration accrued at the relevant date, under the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023, to the Agreement with Cassa Depositi e restiti renewed on 23 December 2021 for the period 2021-2024
• Revenue from insurance brokerage derives from fees receivable from the subsidiaries, oste Vita and oste Assicura, in return for the sale of insurance policies
• Revenue from current account services primarily includes charges for account maintenance fees (€289 million), fees for collection and on-line credit transfer services (€80 million) and fees for reporting services carried out for customers (€4 million)
• ncome from the distribution of payment products and services regards fees received in return for distributing and promoting the products issued by the subsidiary, oste ay pA
• ncome from the distribution of loan products relate to commissions received by the Company on the placement of personal loans and mortgages on behalf of third parties
• Income from delegated services primarily regards amounts received by the Company for the payment of pensions and bank transfers credited by (€26 million) and services performed on the basis of the agreement with the M F (€62 million)

Other sales of goods and services

he main revenue items include: income from the subsidiary oste ay pA for the execution of card payment and payment transactions (€116 million); income for the promotion and marketing of the nergy offer (€11 million), income from the subsidiaries oste ay pA (€49 million), oste Vita pA (€42 million), ostel pA (€20 million) and DA xpress Courier pA (€17 million) for technology services in support of business activities and income from call centre services (€16 million)

C2 - OTHER INCOME (€271 million) AND EXPENSES (€633 million) DERIVING FROM FINANCIAL ACTIVITIES

tab. C2.1 - Other income from financial activities

Description (€m)	FY 2023	FY 2022	Changes
Income from equity instruments at FVTPL	8	2	6
Fair value gains	7	1	6
Realised gains	1	-	1
Dividends from other equity investments	-	1	(1)
Income from financial instruments at FVTOCI	164	262	(98)
Realised gains	164	262	(98)
Income from financial instruments at amortised cost	47	130	(83)
Realised gains	47	130	(83)
Income from fair value hedges	-	16	(16)
Fair value gains	-	16	(16)
Income from valuation of cash flow hedges	-	1	(1)
Fair value gains	-	1	(1)
Foreign exchange gains	3	5	(2)
Fair value gains	1	1	-
Realised gains	2	4	(2)
Other income	49	12	37
Total	271	428	(157)

he decrease in Other income from financial activities, compared to the previous year, was mainly due to lower realised gains from financial instruments at FV OC and at amortised cost, partially offset by higher other income for interest accrued on guarantee deposits paid to counterparties

tab. C2.2 - Expenses from financial activities

Description (€m)	FY 2023	FY 2022	Changes
Interest expense	572	156	416
in customers' deposits	286	114	172
on guarantee deposits	158	25	133
on repurchase agreements	128	14	114
due to the Parent Company	-	4	(4)
Interest expense on own liquid funds (finance costs)	-	(1)	1
Expense from financial instruments at FVTOCI	54	4	50
Realised losses	54	4	50
Expenses from financial instruments at amortised cost	-	53	(53)
Realised losses	-	53	(53)
Expenses from financial instruments at FVTPL	7	2	5
Fair value losses	4	2	2
Realised losses	3	-	3
Total	633	215	418

Expenses from financial activities increased compared to the year 2022 mainly due to the effect of the change in the interest rate curve, which generated higher interest expenses on collateral deposits received from counterparties, on repurchase agreements and on postal current accounts of public customers

C3 - OTHER OPERATING INCOME (€1,003 million)

tab. C3 - Other operating income

Description (€m)	FY 2023	FY 2022	Changes
Dividends from subsidiaries	829	641	188
Gains on disposals (1)	96	3	93
Interest income on tax credits at CA	12	20	(8)
Rentals	14	14	-
Government grants	9	2	7
Recoveries of contract expenses and other recoveries	12	13	(1)
Reimbursement of personnel expenses	6	5	1
Other income	25	23	2
Total	1,003	721	282

(1) For the purposes of reconciliation with the statement of cash flows, in 2023 this item is positive for €93 million, after losses of €3 million n 2022, this item, after losses of €2 million, amounted to a positive €1 million

he increase in Other operating income was mainly due to higher dividends distributed by subsidiaries during the year and the capital gain of about €91 million generated by the sale of the controlling interest in the company sennder (see ote A5 - Investments)

Dividends from subsidiaries

tab. C3.1 - Dividends from subsidiaries

Name (€m)	FY 2023	FY 2022	Changes
Poste Vita SpA	450	397	53
PostePay SpA	305	119	186
SDA Express Courier SpA	35	91	(56)
BancoPosta Fondi SpA SGR	27	26	1
sennder Italia Srl	4	-	4
PosteWelfare SpA	3	-	3
EGI SpA	2	2	-
Sengi Express Limited	2	2	-
Poste Air Cargo Srl	1	1	-
Postel SpA	-	3	(3)
Total	829	641	188

C4 - COST OF GOODS AND SERVICES (€2,640 million)

tab. C4 - Cost of goods and services

Description	FY	FY	Changes
(€m)	2023	2022
Service costs	2,392	2,279	113
Lease expense	127	100	27
Raw, ancillary and consumable materials and goods for resale	121	118	3
Total	2,640	2,497	143

Costs of goods and services increased by a total of €143 million compared to the financial year 2022 his trend is mainly attributable to the general increase in costs generated by the international inflationary pressure, the increase in costs for logistics and delivery services related to parcels, and fees related to the increased use of cloud technology

ervice costs

tab. C4.1 - Service costs

Description (€m)	FY 2023	FY 2022	Changes
Transport of mail, parcels and forms	1,212	1,101	111
Outsourcing fees and external service charges	403	413	(10)
Routine maintenance and technical assistance	198	214	(16)
Personnel services	133	122	11
Energy and water	105	72	33
Cleaning, waste disposal and security	80	93	(13)
Transport of cash	56	61	(5)
Telecommunications and data transmission services	49	54	(5)
Exchange of mail and telegraphy	46	44	2
Advertising and promotions	44	44	-
Electronic document management, printing and enveloping services	25	25	-
Insurance premiums	16	12	4
Agent commissions and other	15	12	3
Consultants' fees and legal expenses	9	12	(3)
Securities custody and management fees	1	-	1
Total	2,392	2,279	113

Lease expense

tab. C4.2 - Lease expense

Description (€m)	FY 2023	FY 2022	Changes
Equipment hire and software licences	110	84	26
Property rentals	11	10	1
Vehicle leases	2	2	-
Other lease expense	4	4	-
Total	127	100	27

Raw, ancillary and consumable materials and goods for resale

tab. C4.3 - Raw, ancillary and consumable materials and goods for resale

Description (€m)	FY 2023	FY 2022	Changes
Fuels and lubricants	53	54	(1)
Consumables and goods for resale	35	35	-
Change in inventories of raw, ancillary and consumable materials	-	7	(7)
Stationery and printed matter	27	18	9
Printing of postage and revenue stamps	6	4	2
Total	121	118	3

C5 - PERSONNEL EXPENSES (€5,348 million)

tab. C5 - Personnel expenses

Description (€m)	Notes	FY 2023	FY 2022	Changes
Wages and salaries		3,874	3,694	180
Social security contributions		1,096	1,050	46
Employee termination benefits: supplementary pension funds and INPS		228	225	3
Agency staff		1	1	-
Remuneration and expenses paid to Directors		2	2	-
Share-based payments		10	7	3
Early retirement incentives		11	21	(10)
Net provisions (reversals) for disputes with staff	[tab. B4]	9	(3)	12
Allocations to the provisions for early retirement incentives	[tab. B4]	158	53	105
Amounts recovered from staff due to disputes		(3)	(5)	2
Other personnel expenses/(cost recoveries)		(38)	(58)	20
Total		5,348	4,987	361

Personnel expenses increased by €361 million compared to the financial year 2022, attributable, for the ordinary component mainly to the increase in the unit cost, and for the extraordinary component, to higher provisions for early retirement incentives and the additional and extraordinary performance bonus, paid in ovember 2023, amounting to approximately €130 million he increase in the unit cost is mainly attributable to the increase in the July 2022 and July 2023 contractual minimums in connection with the national collective labour agreement renewed in June 2021 and the increase in the variable component driven by the share linked to sales activities

et provisions for disputes with staff and provisions for restructuring charges are described in note B4 – Provisions for risks and charges

he following table shows the Company's average and year-end headcounts by category:

tab. C5.1 - Number of employees

	Average		Changes	Year end		Changes
Permanent workforce	FY 2023	FY 2022		31.12.2023	31.12.2022
Executives	541	537	4	533	537	(4)
Middle managers (A1)	6,573	6,511	62	6,530	6,486	44
Middle managers (A2)	7,549	7,564	(15)	7,483	7,522	(39)
Grades B, C, D	85,640	87,430	(1,790)	83,432	87,052	(3,620)
Grades E, F	6,303	4,611	1,692	6,435	6,057	378
Total employees on permanent contracts (*)	106,606	106,653	(47)	104,413	107,654	(3,241)

(*) Figures expressed in full-time equivalent terms

Furthermore, taking account of personnel on flexible contracts, the average number of full-time equivalent personnel is 114,613 (in 2022: 115,808)

C6 - DEPRECIATION, AMORTISATION AND IMPAIRMENTS (€773 million)

tab. C6 - Depreciation, amortisation and impairments

Description	FY	FY	Changes
(€m)	2023	2022
Depreciation of property, plant and equipment	205	200	5
Impairments/recoveries/adjustments of property, plant and equipment	-	(8)	8
Depreciation of investment property	1	1	-
Amortisation and impairments of intangible assets	344	345	(1)
Depreciation of right-of-use assets	223	208	15
Impairments/recoveries/adjustments of right of use	-	(2)	2
Total	773	744	29

Depreciation, amortisation and impairments showed an increase of €29 million compared to the year 2022, mainly due to higher depreciation on roperty, plant and equipment (€5 million), on rights of use (€15 million), largely related to the expansion of the leased fleet

C7 - OTHER OPERATING COSTS (€223 million)

tab. C7 - Other operating costs

Description (€m)	Notes	FY 2023	FY 2022	Changes
Operational risk events		28	25	3
Thefts		4	3	1
Loss of BancoPosta assets, net of recoveries		3	4	(1)
Other operating losses of BancoPosta		21	18	3
Net provisions for risks and charges made/(released)		61	322	(261)
for disputes with third parties	[tab. B4]	(19)	22	(41)
for operational risks	[tab. B4]	(2)	(12)	10
for taxation	[tab. B4]	1	1	-
for other risks and charges	[tab. B4]	1	(9)	10
for risks on tax credits - Law no. 77/2020	[tab. B4]	80	320	(240)
Capital losses		3	2	1
Other taxes and duties		103	95	8
Municipal property tax		27	28	(1)
Stamp duty		38	28	10
Other taxes and duties		38	39	(1)
Other current expenses		28	29	(1)
Total		223	473	(250)

Other operating costs decreased compared to the year 2022 due to lower provisions for risks and charges, see ote B4 - Provisions for risks and charges and ote A10 - Tax Credits, Law no. 77/2020

C8 – IMPAIRMENT LOSSES/(REVERSALS OF IMPAIRMENT LOSSES) ON DEBT INSTRUMENTS, RECEIVABLES AND OTHER ASSETS (€50 million)

tab. C8 - Impairment losses/(Reversals of impairment losses) on debt instruments, receivables and other assets

Description (€m)	FY 2023	FY 2022	Changes
Net impairment trade receivables and other assets	42	89	(47)
Net impairment debt instruments and receivables of financial operations	8	8	-
Total	50	97	(47)

C9 - FINANCE INCOME (€176 million) AND COSTS (€111 million)

Finance income

tab C9.1 - Finance income

Description (€m)	Notes	FY 2023	FY 2022	Changes
Income from subsidiaries and associates		134	76	58
Interest on loans		22	10	12
Interest on non-convertible subordinated capital instruments		57	15	42
Interest on intercompany current accounts		1	-	1
Dividends from associates(1)		13	11	2
Other finance income		41	40	1
Income from financial instruments at FVTOCI		5	1	4
Interest on fixed-income instruments		2	1	1
Dividends from other equity investments (1)		3	-	3
Income from financial instruments at FVTPL		1	5	(4)
Accrued differentials on derivative instruments at FVTPL		1	5	(4)
Income from financial instruments - cash flow hedges		6	-	6
Realised gains		6	-	6
Other finance income		25	6	19
Remuneration of own liquid funds of Poste Italiane	[tab. C1.2.1]	15	1	14
Finance income on discounting receivables(2)		2	2	-
Late payment interest		27	21	6
Impairment of amounts due as late payment interest		(26)	(20)	(6)
Other income		7	2	5
Foreign exchange gains(1)		5	7	(2)
Total		176	95	81

(1) For the purposes of reconciliation with the statement of cash flows, in 2023 finance income after foreign exchange gains and dividends from associates and other investments amounts to €155 million (€77 million in 2022)

(2) Finance income on discounted receivables regards interest on amounts due from staff and for C D agreements

Finance income increased compared to 2022 mainly due to interest accrued and paid on the subordinated, nonconvertible capital instrument issued by the subsidiary oste Vita pA in 2022 and subscribed by oste taliane (€42 million), interest on loans granted to subsidiaries (€12 million), the latter described in ote A6 - Financial assets, and interest accrued on postal current accounts in the name of oste taliane as a result of the upward shift in the interest rate curve (€14 million)

Finance costs

tab. C9.2 - Finance costs

Description (€m)	Notes	FY 2023	FY 2022	Changes
Finance costs on financial liabilities		69	30	39
on lease payables		21	19	2
on due to financial institutions		6	4	2
on bonds		5	4	1
from derivative instruments		-	1	(1)
on payables due to parent companies		37	2	35
Finance costs on provisions for employee termination benefits	[tab. B5]	25	15	10
Finance costs on provisions for risks	[tab. B4]	3	1	2
Interest expense on own liquid funds	[tab. C2.2]	-	1	(1)
Other finance costs		8	20	(12)
Foreign exchange losses(1)		6	4	2
Total		111	71	40

(1) For the purposes of reconciliation with the statement of cash flows, in 2023 finance costs after foreign exchange losses amounted to €105 million (€67 million in 2022)

Finance costs increased compared to the financial year 2022 mainly due to higher interest on payables to subsidiaries for running current account relationships ( ote B6 - Financial liabilities)

C10 – IMPAIRMENT LOSSES/(REVERSALS OF IMPAIRMENT LOSSES) ON FINANCIAL ASSETS

Reversal of impairment losses of €25 million in relation to the receivable for interest income on the R reimbursement, as described in ote A9 - Other receivables and assets

C11 - INCOME TAX EXPENSE (€229 million)

he nominal R rate is 24%, while the theoretical average RA rate is 4 53%279F ²⁸⁰ he breakdown of income taxes for the year is as follows:

tab. C11 - Income tax expense

Description (€m)	FY 2023			FY 2022			Changes
	IRES	IRAP	Total	IRES	IRAP	Total
Current tax expense	168	42	210	132	43	175	35
Deferred tax assets	17	1	18	68	10	78	(60)
Deferred tax liabilities	1	-	1	-	-	-	1
Total	186	43	229	200	53	253	(24)

he tax rate for 2023 is 14 16% and consists of:

²⁸⁰ The nominal tax rate for IRAP is 3.90% for entities as a whole and 4.20% for entities that hold concessions other than those relating to the construction and operation of motorways and tunnels (+/–0.92% resulting from regional surtaxes and/or relief and +0.15% as a result of additional surtaxes levied in regions with a health service deficit).

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

tab. C11.1 - Reconciliation between theoretical and effective IRES rate

Description (€m)	FY 2023		FY 2022
	IRES	Impact %	IRES	Impact %
Profit before tax	1,619		1,100
Theoretical tax charge	389	24.0%	264	24.0%
Effect of increases/(decreases) on theoretical tax charge
Dividends from investee companies	(192)	-11.83%	(148)	-13.47%
Realised gains on investments	(21)	-1.28%	-	-
Net provisions for risks and charges and doubtful debts	21	1.29%	98	8.93%
Taxation for previous years	(9)	-0.54%	(8)	-0.72%
Non-deductible out-of-period losses	5	0.31%	4	0.36%
Non-deductible taxes	1	0.02%	1	0.05%
Other	(8)	-0.47%	(5)	-0.44%
Effective tax (before recognition of the Patent Box and ACE tax effect)	186	11.50%	206	18.72%
Patent Box and ACE (aid for economic growth) tax effect - previous years	-	-	(6)	-0.56%
Effective tax charge	186	11.50%	200	18.16%

tab. C11.2 - Reconciliation between theoretical and effective IRAP rate

Description (€m)	FY 2023		FY 2022
	IRAP	Impact %	IRAP	Impact %
Profit before tax	1,619		1,100
Theoretical tax charge	73	4.53%	49	4.48%
Effect of increases/(decreases) on theoretical tax charge
Dividends from investee companies	(38)	-2.36%	(29)	-2.65%
Non-deductible personnel expenses	21	1.31%	17	1.56%
Net provisions for risks and charges and doubtful debts	(3)	-0.16%	18	1.62%
Non-deductible out-of-period losses	1	0.06%	1	0.07%
Finance income and costs	(3)	-0.20%	(1)	-0.14%
Impairment losses/(reversals of impairment losses) on financial assets	(2)	-0.12%	-	0.00%
Non-deductible taxes	1	0.08%	1	0.11%
Realised gains on investments	(4)	-0.26%	-	0.00%
Taxation for previous years	(1)	-0.10%	(1)	-0.05%
Other	(2)	-0.11%	(2)	-0.15%
Effective tax (before recognition of the Patent Box tax effect)	43	2.66%	53	4.85%
Patent Box tax effect - previous years	-	-	-	-
Effective tax charge	43	2.66%	53	4.85%

With regard to the deductibility of losses related to the non-compensation of tax credits, and the provision for risks on tax credits (see also ote A10 - ax Credits Law no 77/2020), on 25 January 2024, the Agenzia delle ntrate's response was received to the request for a tax ruling presented by the Company; the response received provides indications that lend themselves to different interpretations and discussions are currently under way with the Agenzia delle ntrate to define the correct interpretation and the consequent impact on the various applicable cases Given the continuing situation of interpretative uncertainty, based on the provisions of FR C 23 - Uncertainty in ncome ax reatments, these items have been conservatively evaluated as non-deductible he possible positive tax effects that may emerge as a result of potential developments in the interpretation of the cases in question, following the conclusion of discussions with the Agenzia delle ntrate will be reflected in financial statements after 2023

Current tax expense

tab. C11.3 - Movements in current tax assets /(liabilities)

	Current tax 2023
	IRES	IRAP	Total
Description (€m)	Assets/ (Liabilities)	Assets/ (Liabilities)
Balance at 1 January	71	(17)	54
Payments	25	26	51
for payments on account for the current year	19	24	43
for balance payable for the previous year	-	2	2
substitute tax	6	-	6
Offsetting - tax credits Law no. 77/2020	339	39	378
Collection of claim for IRAP refund	-	(1)	(1)
Collection of ACE 2013 credit	(6)	-	(6)
Provisions to profit or loss	(168)	(42)	(210)
for current liabilities	(168)	(42)	(210)
Provisions to equity	7	-	7
Tax consolidation	(374)	-	(374)
Other(*)	20	-	20
Balance at 31 December	(86)	5	(81)
of which:
Current tax assets	62	6	68
Current tax liabilities	(148)	(1)	(149)

(*) This item mainly refers to receivables for withholding taxes.

Under A 12 – ncome axes, R and RA credits are offset against the corresponding current tax liabilities, when applied by the same tax authority to the same taxable entity, which has a legally enforceable right to offset and intends to exercise this right

At 31 December 2023, current tax assets/(liabilities) include:

• liabilities of €148 million relating to all companies participating in tax consolidation determined by R and RA provisions for the year 2023, net of R and RA advances and R and RA receivables from the previous year;
• assets for a residual €14 million related to the adhesion to the atent Box regime for the financial years 2017-2019 Following the submission of the relevant supplementary tax return, the R credit related to the Aid for conomic Growth (AC ) for the financial year 2013 of €6 million was collected in the year under review;
• assets for a total of €14 million related to a request for a tax ruling referring to the tax recognition of income components arising from the management of postal current account balances;
• the substitute tax credit of a residual €13 million relating to the redemption carried out by the Company during 2018, pursuant to art 15, paragraph 10 ter of Law Decree no 185 of 29 ovember 2008, of the higher values resulting from the notes to the consolidated financial statements at 31 December 2017, of goodwill and other intangible assets relating to the acquisition of the investment in F A nvestimenti rl;
• assets for a residual €9 million recognised as a result of the responses received to two requests for a tax ruling filed with the Agenzia delle ntrate concerning the tax effects of application of FR 9 and 15 hese assets will become compensable after the submission of the relevant supplementary tax returns;
• Poste Italiane Group oste taliane's Financial tatements at 31 December 2023
• the substitute tax credit for a residual €7 million relating to the redemption carried out by the Company during 2022, pursuant to art 15, paragraphs 10 bis and 10 ter of Law Decree no 185 of 29 ovember 2008, of the goodwill arising from the acquisition of the exive Group and engi HK investments;
• assets totalling €6 million relating to the redemption carried out by the Company during the year under review, pursuant to art 15, paragraph 10 ter of Law Decree no 185 of 29 ovember 2008, of the goodwill arising from the acquisition of ourcesense pA and Agile ower rl investments he payment of the substitute tax will allow, from the second financial year following payment, the amounts of the redeemed goodwill to be deducted for tax purposes

Deferred tax assets and liabilities

Details of this item at 31 December 2023 are shown in the following table:

tab. C11.4 - Deferred taxes

Description (€m)	Balance at 31.12.23	Balance at 31.12.22	Changes
Deferred tax assets Deferred tax liabilities	928 (272)	1,455 (232)	(527) (40)
Total	656	1,223	(567)
of which attributable to BancoPosta RFC Deferred tax assets	642	1,157	(515)
Deferred tax liabilities	(266)	(226)	(40)

Movements in deferred tax assets and liabilities are shown below:

tab. C11.5 - Movements in deferred tax assets and liabilities

Description Notes (€m)	FY 2023
Balance at 1 January	1,223
Net income/(expense) recognised in profit or loss Net income/(expense) recognised in equity [tab. C11.8]	(19) (548)
Balance at 31 December	656

he following table shows movements in deferred tax assets and liabilities, broken down according to the events that generated such movements:

tab. C11.6 - Movements in deferred tax assets

Description (€m)	Investment property	Financial assets and liabilities	Provisions to cover expected losses	Provisions for risks and charges	Contract liabilities	Other	Total
Balance at 1 January 2023	17	1,117	78	198	14	31	1,455
Income/(expense) recognised in profit or loss	(1)	-	1	(23)	9	(4)	(18)
Income/(expense) recognised in equity	-	(509)	-	-	-	-	(509)
Balance at 31 December 2023	16	608	79	175	23	27	928

tab. C11.7 - Movements in deferred tax liabilities

Description (€m)	Financial assets and liabilities	Gains	Other	Total
Balance at 1 January 2023	229	1	1	231
Expense/(income) recognised in profit or loss	-	-	1	1
Expense/(income) recognised in equity	40	-	-	40
Extraordinary transactions	-	-	-	-
Balance at 31 December 2023	269	1	2	272

At 31 December 2023, deferred tax assets and liabilities recognised directly in equity are as follows:

tab. C11.8 - Deferred tax assets and liabilities recognised in equity

	Increases/(decreases) in equity
Description	FY
(€m)	2023
Fair value reserve for financial assets at FVTOCI	(616)
Cash flow hedge reserve for hedging derivative instruments	68
Actuarial gains /(losses) on employee termination benefits	-
Total	(548)

5.5 RELATED PARTY TRANSACTIONS

Impact of related party transactions on statement of financial position and profit or loss

Impact of related party transactions on the financial position at 31 December 2023
		Balance at 31.12.2023
Name (€m)	BancoPosta's	financial assets Financial assets	Trade receivables	Other receivables and assets	Cash and cash equivalents	BancoPosta's	financial liabilities Financial liabilities	Trade payables	Other liabilities
Direct subsidiaries
BancoPosta Fondi SpA SGR		-	29	1		11	30	3	-
CLP ScpA		-	3	1		-	-	112	-
Consorzio PosteMotori		-	3	-		1	-	-	-
Consorzio Servizi ScpA		2	-	-		-	-	19	-
EGI SpA		-	-	-		1	51	-	1
Poste Welfare Servizi Srl		-	5	10		-	14	13	1
Poste Air Cargo Srl		5	1	-		-	-	-	-
PatentiViaPoste ScpA		-	1	-		1	16	-	-
Poste Vita SpA		259	355	104		721	247	2	1
Postel SpA		19	58	3		-	-	16	4
PostePay SpA	185	-	189	18		10,197	855	85	1
SDA Express Courier SpA Milkman Deliveries SpA		69 -	19 -	- -		3 3	- 8	176 6	12 -
Nexive Network Srl		9	1	3		-	5	-	2
Nexive Scarl		-	13	-		-	6	-	1
Sengi Express Limited LIM		-	66	-		-	-	-	-
Agile Lab S.r.l.		1	-	-		-	-	2	-
Sourcesense S.p.A.		4	-	-		-	-	4	-
Indirect subsidiaries
Address Software Srl		-	-	-		-	-	1	-
Kipoint SpA		-	1	-		-	2	3	-
Poste Assicura SpA		-	16	6		6	-	-	-
Plurima SpA		46	-	-		-	-	-	1
Bridge Technologies Srl		-	-	-		-	-	2	-
Poste Insurance Broker		-	-	-		2	-	-	-
LIS Holding S.p.A.		-	-	6		-	85	-	-
LIS Pay S.p.A.		-	1	-		1	63	-	-
Associates
ItaliaCamp Srl		- -	- 1	- -		- -	- -	- -	- -
Financit SpA		-	3	-		-	-	17	-
sennder Italia Sr.l.		-	-	-		36	-	-	-
External related parties
MEF	8,937	-	364	2	874	5,371	4	4	1
Cassa Depositi e Prestiti Group	2,891		251	1		-	-	16	-
Enel Group	-		24	-		-	-	-	-
Eni Group	-		4	-		-	-	3	-
Leonardo Group	-		-	-		-	-	11	-
Monte dei Paschi di Siena Group	224		1	-	-	351	-	-	-
Invitalia Group	-	20	1	-		-	-	-	-
Other external related parties	-	-	24	-	-	-	4	1	69
Provisions for doubtful debts from related parties	(7)	(20)	(36)	-	-
Total	12,230	414	1,398	155	874	16,705	1,390	496	94

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Impact of related party transactions on the financial position at 31 December 2022

						Balance at 31.12.2022
Name (€m)	BancoPosta's		financial assets Financial assets Trade receivables	Other receivables and assets	Cash and cash equivalents	BancoPosta's financial liabilities	Financial liabilities	Trade payables	Other liabilities
Direct subsidiaries
BancoPosta Fondi SpA SGR	-	-	20	1	-	7	30	3	-
CLP ScpA	-	-	3	-	-	-	-	100	-
Consorzio PosteMotori	-	-	3	-	-	3	-	-	-
Consorzio Servizi Telef. Mobile ScpA	-	-	-	-	-	1	-	14	-
EGI SpA	-	-	1	-	-	1	56	-	-
Poste Welfare Servizi Srl	-	-	5	2	-	-	8	4	-
Poste Air Cargo Srl	-	5	1	-	-	-	-	-	-
PatentiViaPoste ScpA	-	-	4	-	-	3	13	-	-
Poste Vita SpA	-	253	333	-	-	197	190	2	121
Postel SpA	-	-	47	3	-	1	6	17	3
PostePay SpA	80	-	282	25	-	9,404	915	123	1
SDA Express Courier SpA	-	48	17	-	-	5	24	145	18
sennder Italia Sr.l.	-	-	-	-	-	20	9	-	-
Milkman Deliveries SpA	-	-	1	-	-	7	4	9	-
Nexive Network Srl	-	17	3	1	-	-	-	-	2
Nexive Scarl	-	-	11	-	-	-	6	-	1
Sengi Express Limited LIM	-	-	33	-	-	-	-	-	-
Sourcesense S.p.A.	-	-	-	-	-	-	-	1	-
Indirect subsidiaries
Address Software Srl	-	-	-	-	-	-	-	1	-
Kipoint SpA	-	-	1	-	-	1	1	2	-
Poste Assicura SpA	-	-	23	-	-	12	4	1	1
Plurima Bidco Srl	-	43	-	-	-	-	-	-	-
Poste Insurance Broker	-	-	1	-	-	3	-	-	-
LIS Holding S.p.A.	-	-	-	-	-	-	50	-	-
LIS Pay S.p.A.	-	-	-	-	-	23	-	-	-
Associates
Financit SpA	-	-	3	-	-	-	-	16	-
External related parties
MEF	11,907	-	379	3	1,991	4,168	4	4	1
Cassa Depositi e Prestiti Group	2,865	-	24	-	-	-	-	13	-
Enel Group	-	-	22	-	-	-	-	-	-
Eni Group	-	-	4	-	-	-	-	7	-
Leonardo Group	-	-	-	-	-	-	-	15	-
Monte dei Paschi di Siena Group	276	-	1	-	-	396	-	-	-
Invitalia Group	-	20	1	-	-	-	-	-	-
Other external related parties	-	-	18	-	-	-	3	2	67
Provisions for doubtful debts from related parties	(7)	(21)	(35)	-	-	-	-	-	-
Total	15,121	365	1,207	35	1,991	14,252	1,323	479	215

At 31 December 2023, total provisions for risks and charges made to cover probable liabilities arising from transactions with related parties external to the Company and attributable primarily to trading relations amount to €59 million (€67 million at 31 December 2022)

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

	Impact of related party transactions on profit or loss in FY 2023

					FY 2023
		Revenue		Capital expenditure			Costs	Current expenses
Name (€m)	Revenue from sales and services	Other operating income	Finance income	Property, plant and equipment	Intangible assets	Cost of goods and services	Expenses from financial activities	Personnel expenses	Other operating costs	Finance costs
Direct subsidiaries
BancoPosta Fondi SpA SGR	103	28	-		-	13	-	(1)	-	1
CLP ScpA	1	-	-	2	-	314	-	-	1	-
Consorzio Servizi ScpA	-	-	-		-	27	-	-	1	-
EGI SpA	-	3	-		-	1	-	-	4	1
Poste Welfare Servizi Srl	4	3	-		-	2	-	-	-	-
Poste Air Cargo Srl	1	2	-		-	-	-	-	-	-
PatentiViaPoste ScpA	22	-	-		-	-	-	-	-	-
Poste Vita SpA	655	452	113		-	-	24	(1)	-	4
Postel SpA	43	2	1		-	30	-	-	-	-
PostePay SpA	491	309	-		-	207	43	(1)	-	28
SDA Express Courier SpA	21	38	4		-	839	-	(1)	-	1
Milkman Deliveries SpA	-	-	-		-	32	-	-	-	-
Nexive Network Srl	2	-	1		-	-	-	(1)	-	-
Nexive Scarl	-	3	-		-	-	-	-	-	-
Sengi Express Limited LIM	114	2	-		-	-	-	-	-	-
Agile Lab S.r.l.	-	-	-		2	-	-	-	-	-
Sourcesense S.p.A.	-	-	-		6	-	-	-	-	-
Indirect subsidiaries
Address Software Srl	-	-	-		-	1	-	-	-	-
Kipoint SpA	1	-	-		-	3	-	-	-	-
Poste Assicura SpA	72	1	-		-	-	-	-	-	-
Plurima SpA	-	-	2		-	-	-	-	-	-
Bridge Technologies Srl	-	-	-		1		-	-	-	-
Poste Insurance Broker	1	-	-		-		-	-	-	-
LIS Holding S.p.A.	-	-	-		-	-	-	-	-	2
LIS Pay S.p.A.	-	-	-		-	-	-	-	-	1
Associates
Anima Group	2	-	8		-	-	-	-	-	-
Financit SpA	30	-	4		-	-	-	-	-	-
sennder Italia Sr.l.	-	95	-		-	-	-	-	-	-
External related parties
MEF	1,315	-	15	-	-	1	-	-	1	-
Cassa Depositi e Prestiti Group	1,832	-	-	8	2	10	-	-	-	-
Enel Group	35	-	-	-	-	-	-	-	-	-
Eni Group	21	-	-	-	-	30	-	-	-	-
Leonardo Group	-	-	-	-	4	23	-	-	-	-
Monte dei Paschi di Siena Group	14	2	-	-	-	-	7	-	-	-
Invitalia Group	2		-	-	-	-	-	-	-	-
Other external related parties	31	3	-	-	-	6	-	73	1	-
Total	4,813	943	148	10	15	1,539	74	68	8	38

Impact of related party transactions on profit or loss in FY 2022

					FY 2022
	Revenue			Costs
						Current
				Capital expenditure		expenses
Name (€m)	Revenue from sales and services	Other operating income	Finance income	Property, plant and equipment	Intangible assets	Cost of goods and services	Expenses from financial activities	Personnel expenses	Other operating costs	Impairment losses/(Reversals of impairment losses) on debt instruments, receivables and other assets	Finance costs
Direct subsidiaries
BancoPosta Fondi SpA SGR	75	27	-	-	-	13	-	(1)	-	-	-
CLP ScpA	1	-	-	2	-	270	-	-	1	-	-
Consorzio PosteMotori	4	-	-	-	-	-	-	-	1	-	-
Consorzio Servizi Telef. Mobile ScpA	-	-	-	-	-	18	-	-	-	-	-
EGI SpA	-	2	-	-	-	1	-	-	-	-	1
Poste Welfare Servizi Srl	4	-	-	-	-	1	-	-	-	-	-
Poste Air Cargo Srl	1	2	-	-	-	-	-	-	-	-	-
PatentiViaPoste ScpA	27	-	-	-	-	-	-	-	-	-	-
Poste Vita SpA	571	400	63	-	-	-	3	(1)	-	-	-
Postel SpA	44	7	-	-	-	29	-	-	-	-	-
PostePay SpA	460	123	-	-	-	219	26	(1)	-	-	2
SDA Express Courier SpA	21	96	2	-	-	756	-	(2)	-	-	-
Milkman Deliveries SpA	-	-	-	-	-	34	-	-	-	-	-
Nexive Network Srl	2	1	-	-	-	1	-	(1)	-	-	-
Nexive Scarl	-	4	-	-	-	-	-	-	-	-	-
Sengi Express Limited LIM	92	2	-	-	-	-	-	-	-	-	-
Indirect subsidiaries
Address Software Srl	-	-	-	-	-	1	-	-	-	-	-
Kipoint SpA	-	-	-	-	-	3	-	-	-	-	-
Poste Assicura SpA	63	-	-	-	-	-	-	-	-	-	-
Plurima Bidco Srl	-	-	1	-	-	-	-	-	-	-	-
Poste Insurance Broker	1	-	-	-	-	-	-	-	-	-	-
Associates
Anima Group	2	-	11	-	-	-	-	-	-	-	-
Financit SpA	40	-	-	-	-	-	-	-	-	-	-
External related parties
MEF	1,105	-	1	-	-	1	3	-	-	1	1
Cassa Depositi e Prestiti Group	1,679	-	-	9	3	10	-	-	-	-	1
Enel Group	40	-	-	-	-	-	-	-	-	-	-
Eni Group	11	-	-	-	-	29	-	-	-	-	-
Leonardo Group	-	-	-	-	3	25	-	-	-	-	-
Monte dei Paschi di Siena Group	12	1	-	-	-	-	1	-	-	-	-
Invitalia Group	3	-	-	-	-	-	-	-	-	-	-
Other external related parties	27	2	-	-	-	4	-	71	-	-	-
Total	4,285	667	78	11	6	1,415	33	65	2	1	5

At 31 December 2023, total provisions for risks and charges made to cover probable liabilities arising from transactions with related parties external to the Company and primarily attributable to trading relations amount to €0 07 million (€0 7 million at 31 December 2022)

he nature of the Company's principal transactions with related parties external to the Group is summarised below:

• he fees recognised by the M F mainly relate to the remuneration for the performance of the Universal ervice (U O), remuneration for delegated services, remuneration for postal current account management services, fees for the notification service and for consignments without material postage
• Amounts received from CD pA primarily relate to payment for the collection of postal savings deposits
• Amounts received from the nel Group primarily relate to payment for bulk mail shipments, unfranked mail
• Amounts received from the Group primarily regard payment for mail shipments he costs incurred relate to the supply of gas and of fuel for motorcycles and vehicles
• urchases from the Leonardo Group primarily relate to the supply, by Leonardo pA, of equipment, maintenance and technical assistance for mechanised mail sorting equipment, and systems and assistance regarding the creation of document storage facilities, the supply of software licences and of hardware and the associated maintenance and specialist consulting services
• Amounts received from the Monte dei aschi di iena group primarily regard payment for mail shipments

Related party transactions have been carried out on terms equivalent to those prevailing in arm's length transactions between independent parties

mpact of related party transactions or positions

he impact of related party transactions on the financial position, profit or loss and cash flows is shown in the following table:

Impact of related party transactions
Description (€m)		Balance at 31.12.2023		Balance at 31.12.2022
	Total in financial statements	Total related parties	Impact (%)	Total in financial statements	Total related parties	Impact (%)
Financial position
Financial assets	81,272	12,644	15.6	84,196	15,486	18.4
Trade receivables	2,774	1,397	50.4	2,657	1,207	45.4
Other receivables and assets	2,777	155	5.6	2,620	35	1.3
Cash and cash equivalents	1,223	874	71.5	2,258	1,991	88.2
Provisions for risks and charges	1,228	59	4.8	1,257	67	5.3
Financial liabilities	96,863	18,095	18.7	104,703	15,575	14.9
Trade payables	1,967	496	25.2	1,970	479	24.3
Other liabilities	3,361	94	2.8	3,362	215	6.4
Profit or loss
Revenue from sales and services	9,880	4,814	48.7	8,904	4,285	48.1
Other operating income	1,004	943	94.0	721	667	92.5
Cost of goods and services	2,640	1,539	58.3	2,498	1,415	56.6
Expenses from financial activities	633	74	11.7	215	33	15.3
Personnel expenses	5,348	68	1.3	4,987	65	1.3
Other operating costs	223	8	3.6	473	8	1.7
Finance costs	111	38	34.2	71	5	7.0
Finance income	176	148,357	84.3	94	78	83.0
Cash flows
Net cash flow from /(for) operating activities	850	4,970	584.7	2,064	2,766	134.0
Net cash flow from /(for) investing activities	(843)	(43)	5.1	(2,255)	(1,096)	48.6
Net cash flow from/(for) financing activities and shareholder transactions	(1,042)	758	n.a.	1,419	(417)	n.a.

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Key management personnel

Key management personnel consist of Directors, members of the Board of tatutory Auditors and the upervisory Board, managers at the first organisational level of the Company and oste taliane's manager responsible for financial reporting he related remuneration, gross of expenses and social security contributions, is as follows:

Remuneration of key management personnel

Description (€k)	Balance at 31.12.2023	Balance at 31.12.2022
Remuneration to be paid in short/medium term	14,343	13,164
Post-employment benefits	580	571
Other benefits to be paid in longer term	(787)	1,871
Share-based payments	4,936	2,469
Total	19,072	18,075

Remuneration of Statutory Auditors

Description	Balance at	Balance at	Changes
(€k)	31.12.2023	31.12.2022
Remuneration	263	264	(1)
Expenses	3	1	2
Total	266	265	1

he remuneration paid to members of the Company's upervisory Board for 2023 amounts to approximately €96 thousand n determining the remuneration, the amounts paid to managers of oste taliane who are members of the upervisory Board is not taken into account, as this remuneration is passed on to the employer

o loans were granted to key management personnel during the year and, at 31 December 2023, the Company does not report receivables in respect of loans granted to key management personnel

ransactions with personnel pensions funds

oste taliane pA and the subsidiaries that apply the ational Collective Labour Agreement are members of the Fondoposte ension Fund, the national supplementary pension fund for oste taliane personnel, established on 31 July 2002 as a non-profit entity he Fund's officers and boards are the General Meeting of delegates, the Board of Directors, the Chairman and Deputy Chairman of the Board of Directors and Board of tatutory Auditors Representation of members on the above boards is shared equally between the companies and the workers that are members of the Fund he participation of members in the running of the Fund is guaranteed by the fact that they directly elect the delegates to send to the hareholders' Meeting

6. RISK MANAGEMENT

INTRODUCTION

he note "Risk Management" presents information on the oste taliane Group's exposure to risks of various kinds and includes a discussion of financial risks (pursuant to FR 7 - Financial Instruments: Disclosures), risks of an insurance nature (pursuant to the new FR 17 - Insurance Contracts) as well as other risks for which it is deemed appropriate/necessary to provide information, also taking into account the recommendations published by MA and Consob280F ²⁸¹ during the year

Qualitative information on the objectives, policies and processes adopted by the Group for the measurement and management of risks is provided in a single section, common to the oste taliane Group and oste taliane pA, while the quantitative information required by the above-mentioned principles is provided in separate paragraphs within this note, unless otherwise indicated

QUALITATIVE INFORMATION

Financial risk

Within the arent Company, the management of lending and risk hedging operations relating to Banco osta RFC and oste taliane are entrusted to Banco osta Fondi pA GR, while finance activities, relating to treasury and medium/longterm funding operations, including on the capital market, as well as extraordinary and subsidised finance initiatives, are entrusted to the Administration, Finance and Control function

Management of the Group's financial transactions and of the associated risks relates mainly to the operations of oste taliane pA and the oste Vita insurance group

• Poste Italiane SpA's financial transactions primarily relate to Banco osta's operations, asset financing and liquidity investment

Banco osta RFC's operations consist in the active management of liquidity generated by postal current account deposits, carried out in the name of Banco osta but subject to statutory restrictions, and collections and payments on behalf of third parties he funds raised by private customers on postal current accounts must be used in euro area government securities and, for a portion not exceeding 50% of the funds raised, in other securities backed by the talian government guarantee281F ²⁸², whilst deposits by ublic Administration entities are deposited with the M F Moreover, within the 50% of deposits from private customers that can be invested in talian government-guaranteed securities, Banco osta RFC may use up to a maximum of 30% of that portion to purchase tax credits transferable pursuant to Law Decree no 34/2020 (the so-called Relaunch Decree) and subsequent amendments and additions, or other tax credits transferable pursuant to current legislation28F 283

he investment profile is based on the constant monitoring of habits of current account holders and the use of a statistical/econometric model that forecasts the interest rates and maturities typical of postal current accounts Accordingly, the portfolio composition aims to replicate the financial structure of postal current accounts by private customers Management of the relationship between the structure of deposits and investments is handled through an appropriate Asset & Liability Management system he above-mentioned model is thus the general reference for the

²⁸¹ Public statement ESMA32-193237008-1793 of 25 October 2023 "European common enforcement priorities for 2023 annual financial reports" and Consob communication of 27 October 2023.

²⁸² As provided for by Law no. 296 of 27 December 2006 and subsequent amendments provided for by the 2015 Stability Law, no. 190 of 23 December 2014.

²⁸³ As provided for in Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021.

investments, in order to limit exposure to interest rate risk and liquidity risks he prudential requirements introduced by the third revision of the Bank of taly Circular 285/2013 require Bancoposta to apply the same regulations applicable to banks in terms of its controls, establishing that its operations are to be conducted in accordance with the Consolidated Law on Banking ( UB) and the Consolidated Law on Finance ( UF) Banco osta RFC is, therefore, required to establish a system of internal controls in line with the provisions of Circular 285283F ²⁸⁴, which, among other things, requires definition of a Risk Appetite Framework (RAF284F ²⁸⁵), the containment of risks within the limits set by the RAF, protection of the value of assets and against losses, and identification of material transactions to be subject to prior examination by the risk control function

Banco osta's capital structure, which is subject to the prudential provisions introduced with the 3rd update of Bank of taly Circular 285/2013, is particularly solid due to its C 1 ratio, which stood at 18 9% at 31 December 2023 he Leverage Ratio showed a year-end value of 3 2%, an increase compared to 31 December 2022, also as a result of the contraction in the assets of the tatement of financial position linked, mainly, to the decrease in loans

By contrast, operations not covered by Banco osta RFC, primarily relating to management of the arent Company's own liquidity, are carried out in accordance with investment guidelines, which require the Company to invest in instruments such as government securities, high-quality corporate or bank bonds, term bank deposits and tax credits Liquidity is also deposited in postal current accounts, subject to the same requirements applied to the investment of deposits by private current account holders

• Financial instruments held by companies in the Poste Vita Group relate primarily to investments designed to cover its contractual obligations to policyholders on traditional build-up life policies and unit-linked policies For these types of products, therefore, the financial results recorded not only change the value of financial assets, but also have an impact on insurance liabilities Other investments in financial instruments regard investment of the insurance companies' free capital

As regards the life business, in particular for the parent company oste Vita pA, traditional Life policies, classified under Classes and V, primarily include products whose benefits are revalued based on the return generated through the management of pools of financial assets, which are separately identifiable in accounting terms only, within the Company's assets ( eparately Managed Accounts) n the case of policies sold in previous years, the Company has guaranteed a minimum return payable at maturity on such products (at 31 December 2023, this minimum return at maturity on existing policies ranged between 0% and 2%) Gains and losses from valuation are retroceded to policyholders and recognised in the statement of profit or loss and/or in a special reserve recognised in the tatement of Comprehensive ncome, net of the over-hedging component he recognition technique, referred to as mirroring, sets forth that the component to be passed on to policyholders is identified through the analysis of the income generated by the securities portfolio correlated to the eparately Managed Accounts (as further specified in ection 2 4 - Changes to accounting policies)

As outlined, the economic effect of financial risks on investments impacts both the pure investment component, i e the financial assets backing the insurance liabilities, and the insurance liability itself, as there is a financial component in the valuation hese effects may be partly passed on to the policyholders n particular, this absorption is generally based on the level and structure of guarantees of minimum returns and the profit-sharing mechanisms of eparately Managed Accounts for the policyholder he company determines the sustainability of minimum returns through periodic analyses using an internal financial-actuarial (Asset-Liability Management) model which simulates, for each separate portfolio, the change in value of the financial assets and the expected returns, as well as the relevant impacts

²⁸⁴ See in particular the provisions laid down in Part I – Section IV – Chapter 3.

²⁸⁵ The RAF consists of a framework that defines, in keeping with the maximum acceptable risk, the business model and strategic plan, the risk appetite, risk tolerance thresholds, risk limits, and risk management policies, together with the processes needed to define and implement them.

on insurance liabilities, under a "central scenario" (based on current financial and commercial assumptions) and under stress and other scenarios based on different sets of assumptions his model makes it possible to manage the risks assumed by oste Vita pA on a quantitative basis, thereby fostering reduced earnings volatility and optimal allocation of financial resources

Unit-linked products, relating to Class insurance products, regard policies where the premium is invested in mutual investment funds he Company constantly monitors the evolution of the risk profile of individual products

he investment policies of the insurance companies Poste Assicura, Net Insurance and Net Insurance Life, which are characterised by businesses that do not envisage a direct correlation between the products placed and the financial investments, are aimed at preserving the Group's capital solidity, as outlined in the framework resolution approved by Poste Vita's Board of Directors on 5 December 2023 Regular analyses of the macroeconomic context, the market trends for the different asset classes and the relevant effects on integrated asset-liability management, are conducted, which is focussed on the optimal management to meet claims

Within the above context, balanced financial management and monitoring of the main risk/return profiles are carried out and ensured by dedicated organisational structures that operate separately and independently n addition, specific processes are in place governing the assumption and management of and control over financial risks, including the progressive introduction of appropriate information systems

n this regard, on 16 February 2021, oste taliane pA's Board of Directors adopted a revised version of the Guidelines for nternal Control and Risk Management ystem ( C GR), which contains integrated guidelines for oste taliane pA's nternal Control and Risk Management ystem

From an organisational viewpoint, the model consists of:

• the Control and Risk Committee, established in 2015 within the Board, has the task of supporting, through an appropriate investigative, proposal-making and advisory activity, the evaluations and decisions of the Board of Directors on the internal control and risk management system and on the approval of the relative periodic financial and non-financial reports;
• the Financial and Insurance Services Committee, established on 19 March 2018 has the objective of overseeing the process of developing the products and services distributed by Banco osta, in order to take a uniform, integrated view of the entire offering and to monitor the performance of the financial investments in which private customer deposits are invested;
• an Investment Committee established at the Group's insurance company, Poste Vita SpA, which, based on analyses by the relevant functions, provides advice to senior management on the development, implementation and oversight of investment strategy;
• appropriate functions established within the arent Company and the subsidiaries providing financial and insurance services (BancoPosta Fondi SGR SpA and Poste Vita SpA) that perform Risk Measurement and Control activities, ensuring the organisational separation of risk assessment from risk management activities; the results of these activities are examined by the relevant advisory Committees, which are responsible for carrying out an integrated assessment of the main risk profiles;
• the Investment Committee of the Net Insurance and Net Insurance Life insurance companies, which is entrusted with investment-related tasks, as well as the verification and monitoring of the companies' compliance with investment policies, guidelines and recommendations;
• the Internal Control, Risk and Related Parties Committee of the Net Insurance and Net Insurance Life insurance companies, set up in order to strengthen the control and risk management system, assists the Board of Directors in evaluations and decisions relating to the internal control and risk management system

n constructing the Risk Model used by Banco osta RFC, account was also taken of the existing prudential supervisory standards for banks and the specific instructions for Banco osta, published by the Bank of taly on 27 May 2014 with the third revision of Circular 285 of 17 December 2013

he financial risks to which the oste taliane Group as a whole is exposed are broken down into the types of risk indicated below he sensitivity analyses performed on individual risks at the reporting date of this Annual Report, described at a theoretical level below, are common to all operating segments, unless otherwise indicated in the context of insurance operations n fact, the application of the new accounting standard FR 17- nsurance Contracts has forced a revision of the way in which the insurance business is monitored and managed as regards the risks to which it is exposed, as well as the way in which sensitivity analyses are performed, in order to better represent the exposure to risks and the close correlation of the impacts of these on financial assets and insurance liabilities in a manner that is consistent with the accounting representation

• Market risk, defined as the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices Market risk comprises three types of risk:
  • o Fair value interest rate risk: the risk that the value of a financial instrument fluctuates as a result of movements in market interest rates he analyses on this type of risk refers primarily to the effects of changes in interest rates on the price of fixed-rate financial instruments or variable-rate financial instruments converted to fixed rate via cash flow hedges and, to a lesser degree, the effects of changes in interest rates on the fixed components of variable-rate financial instruments or fixed-rate financial instruments converted to variable rate via fair value hedges he impact of these effects is directly related to the financial instrument's duration he sensitivity analysis to the interest rate risk of the positions concerned was calculated as a result of a hypothetical parallel shift in the market rate curve of +/- 100 bps, providing a baseline reference that can be used to appreciate potential changes in fair value in the event of interest rate fluctuations
  • o Price risk: the risk that the value of a financial instrument fluctuates as a result of market price movements, deriving from factors specific to the individual instrument or the issuer, and factors that influence all instruments traded on the market rice risk relates to financial assets classified as measured at fair value through other comprehensive income ("FV OC ") or measured at fair value through profit or loss ("FV L"), and certain derivative financial instruments where changes in value are recognised in profit or loss he sensitivity analysis took into account positions potentially exposed to fluctuations in value Financial statement balances have been subjected to a stress test, based on actual volatility during the year, considered to be representative of potential market movements n the context of its insurance activities, the Group considered a sensitivity analysis represented by a parallel shift in the price curve of +/-25% to be more representative of its risk exposure, departing from what had been done in the past
  • o Foreign exchange risk: the risk that the value of a financial instrument fluctuates as a result of movements in exchange rates for currencies other than the functional currency ensitivity analysis of the items subject to foreign exchange risk was based on the most significant positions, assuming a stress scenario determined by the levels of exchange rate volatility applicable to each foreign currency position he test applies an exchange rate movement based on volatility during the year, which was considered to be representative of potential market movements
• Spread risk or country risk: the risk relates to the potential fall in the value of bonds held, following a deterioration in the creditworthiness of issuers his is due to the importance that the impact of the spread of returns on government securities had on the fair value of euro zone government and corporate securities, reflecting the market's perception of the credit rating of issuers he value of the portfolio of bonds issued or guaranteed by the talian government is

much more sensitive to the credit risk associated with the talian Republic than to changes in so-called risk-free interest rates his is due to the fact that changes in credit spreads are not hedged and regard the entire securities portfolio, meaning both the fixed and variable rate components n this latter case, in fact, fair value derivatives, used to convert variable rate instruments, hedge only the risk-free interest rate risk and not credit risk his means that a change in the credit spread has an equal impact on both fixed and variable instruments he sensitivity to the spread has been calculated by applying a shift of +/- 100 bps to the yield curve for talian government bonds For insurance activities, since the portfolio is also diversified over securities belonging to the corporate sector, stresses are applied and evaluated separately between the purely government and private issue portfolios Furthermore, in assessing the actual risk exposure, the Group considered only a worst-case scenario of stress conditions, i e a parallel shift of the curve of +100 bps, to be more significant in terms of potential impact on results;

• Credit risk: this is the risk of default of one of the counterparties to which there is an exposure, with the exception of equity instruments and units of mutual funds For more detailed information on the inputs, assumptions and estimation techniques used to calculate xpected Credit Losses ( CL), please see ection "2.6 - Use of estimates - Impairment and stage allocation for financial instruments"
• Liquidity risk; this is the risk that an entity may have difficulties in raising sufficient funds, at market conditions, to meet its obligations deriving from financial instruments n order to minimise this risk, the oste taliane Group applies a financial policy based on diversification of the various forms of short-term and long-term borrowings and counterparties; availability of relevant credit lines in terms of amounts and the number of banks; gradual and consistent distribution of the maturities of medium/long-term borrowings; and use of dedicated analytical models to monitor the maturities of assets and liabilities
• Cash flow interest rate risk: this is defined as the uncertainty related to the generation of future cash flows, due to interest rate fluctuations uch risk may arise from the mismatch – in terms of interest rate, interest rate resets and maturities – of financial assets and liabilities until their contractual maturity and/or expected maturity (banking book), with effects in terms of interest spreads and, as such, an impact on future results he performed analysis refers to the uncertainty over future cash flows generated by variable-rate instruments and variable-rate instruments created through fair value hedges following fluctuations in market interest rates ensitivity to cash flow interest rate risk relating to these instruments is calculated by assuming a parallel shift in the yield curve of +/- 100 bps
• Cash flow inflation rate risk: this is defined as the uncertainty related to the generation of future cash flows, due to fluctuations in inflation rates recorded on the market

nsurance risks

his type of risk emerges as a consequence of the placement, by insurance companies belonging to the Group, of products that fall under the definition of insurance contracts hese contracts have conditions, such as technical bases adopted, premium calculation, lapse conditions, etc , which bring out risks typical of the insurance business

n order to combine strategic and business objectives with those of profitability and quality of the risks assumed, as well as mitigating the exposure to said typical risks, at the underwriting phase, the Group has defined an underwriting policy which provides for the following:

• the development of products consistent with the needs and characteristics of the various customer segments;
• the assumption of risks for the management of which there are adequate supporting skills and resources;
• the assumption of risks consistent with the Risk trategy and Risk Appetite;
• the elimination or non-renewal, where possible, of "accepted" risks that are not consistent with the Risk Appetite Framework and/or that imply exceeding the limits established by the specific guidelines of the Group;
• the underwriting of risks that ensure adequate mitigation techniques, in particular consistency between reinsurance treaties underwritten, product characteristics (e g guarantees covered, contract duration) and portfolio mix;
• the adequacy of procedures and control systems to ensure the completeness, relevance and accuracy of the accounting and statistical data used for risk pricing/analysis purposes;
• the evaluation, when designing a new product and/or a new commercial initiative, of the following aspects:
  • o adequate reinsurance structures;
  • o assumption limits;
  • o contractual clauses (possibility of splitting the premium, possibility of tacit renewal, withdrawal in the event of a claim, etc );
  • o expenses (for the acquisition, management and administration of contracts including claims settlement expenses, etc );
  • o changes (in terms of risk and concentration) to the portfolio mix that the issuance of the new product may entail;
  • o assessment of the impact of non-payment of premiums (e g impossibility of recovering expenses and commissions) with relative repercussions on solvency

n the assumption of risks, the Group must therefore undertake to guarantee the sufficiency of the premiums collected with respect to the future commitments made to policyholders and the costs of managing and acquiring contracts, developing the skills and professionalism of the parties involved in product definition, assumption of risks and, more generally, of all parties involved in the underwriting process

he Group also guarantees ever-increasing quality standards in the management of underwriting activities in order to avoid reputational losses and anti-selection phenomena

he underwriting policy is aimed at strengthening the Group's market position, increasing its share in the various insurance lines in which it operates by developing a profitable risk portfolio

As a result of the assumption of risks typical of the insurance business, types of exposures emerge that are significant for the Group and for which specific monitoring and containment activities need to be implemented pecifically:

• Lapse risk: insurance contracts may theoretically contain implicit options such as lapse options, guaranteed minimum return options and/or annuity conversion options hese options give the policyholder the right or the ability to obtain profits or changes in the relationship that give rise to a risk borne by the company, assuming a risk other than the insurance risk associated with taking out the contract n the specific case of the oste taliane Group, for almost all the products in its portfolio, no penalties are envisaged in the event of lapse by the policyholder, so that this risk becomes significant in the event of mass lapses, which cannot be foreseen and are concentrated in specific, excessively short time periods that would not allow for easy management of potential redemptions in the portfolio his would entail a significant monetary outlay for the companies belonging to the Group, which would find themselves in the position of having to dispose of assets to cover their liabilities, with the possible realisation of potential capital losses in the event of unfavourable market situations, as well as to use their cash and cash equivalents to cover the contractually guaranteed minimum levels t is stressed that, considering the historical trend observed to date, the probability of this hypothesis occurring is considered remote (lapse rate for 2023 of approximately 4 4%), and furthermore, any adverse event would be covered by specific reinsurance contracts to cover massive lapse phenomena he aforementioned phenomenon has a greater impact on the portfolios associated with the eparately Managed Accounts, for which any devaluation of securities would entail a loss in the current year and a carry-over effect on future returns, resulting in a significant reduction that could compromise the sound and prudent management of the company, as well as the dynamics of shortand medium-term funding n the current context of economic uncertainty, an increase in the rate at which customers are exercising the policy lapse option can be observed in the talian market his phenomenon in the policy portfolio of the subsidiary oste Vita remains well below the level observed in the market; however, the characteristics of Multi-class products placed in recent years, which make provision for a gradual transfer of

investments to the target unit-linked unit chosen by the customer, will result in a gradual increase in the stock of reserves pertaining to Class products, which have historically shown a higher lapse rate than traditional buildup products n light of this consideration, the risk related to lapse dynamics was considered significant by the Group, and a sensitivity analysis was performed on this risk equal to +10% instantaneous lapse rate of investment

incremental lapse stress scenario, i e only the worst-case scenario for the oste taliane Group; • Provisioning risk: referring to the risk that technical provisions are not sufficient to meet obligations to policyholders and injured parties his insufficiency may be due to incorrect estimates by the company and/or changes in the general environment his risk was considered significant for the &C business managed by the Group, and a sensitivity analysis was performed to measure exposure under scenarios involving a +/-2% change

products Considering the portfolio structure of the Group's companies, the decision was taken to apply only an

in the loss ratio285F 286 • Concentration risk: it is the risk that the business is excessively concentrated only on certain types of risk, products, customers and geographical areas and is therefore not adequately diversified he Group assesses its exposure to this risk differentially between life and &C business, evaluating the concentration based on the types

of products placed

he expected evolution of the portfolio and the different degree of risk of the products distributed required the adoption of a careful reinsurance policy, aimed at mitigating the risks to which the Group is exposed

he reinsurance strategy adopted by oste Assicura, based mainly on a non-proportional approach, makes it possible to:

• mitigate risks, stabilising the variability of insurance business results and ensuring the technical balance of the portfolio;
• mitigate risks arising from peak exposures or catastrophic events;
• support the development of underwriting activities;
• strengthen the Company's financial solidity

n particular, reinsurance treaties with market operators of primary standing were entered into with non-proportional coverage in the form of "excess loss" (per risk and per event), separately for the various ministerial classes, to cover all oste Assicura's risks (Retail and mployee Benefits) such as: risks included in the accident, health, fire, general liability and other property damage classes, and "catastrophic risks" such as earthquake or pandemic For all risks relating to health guarantees (excluding those arising from the Credit rotection line), the reinsurance policy provides for an additional "quota share" treaty286F ²⁸⁷ For some accident and credit protection risks, the risk-attaching, proportional treaties287F 288 , underwritten during the Company's start-up phase, remain in force

oste Assicura defines, on a case-by-case basis, the share of risk and the reinsurance structure deemed most appropriate in relation to the characteristics of the risk in question

As regards companies in the et Group, the expected growth of the portfolio and the different degrees of risk associated with the products distributed has required the company to adopt a highly prudent approach to reinsurance he reinsurance strategy, based mainly on a proportional approach, but also on some non-proportional covers (especially for hail, suretyship and, to a lesser extent, other insurance lines), makes it possible to:

• mitigate unfavourable technical trends and risks arising from peak exposures;

²⁸⁶ Indicator of the cost-effectiveness of insurance technical management representing the ratio of incurred claims to premiums collected in the same financial year and administrative period.

²⁸⁷ "Quota share" treaties are defined as agreements under which the insurer transfers insurance risk (through the transfer of premiums, claims and reserves) based on a contractually defined percentage share.

²⁸⁸ Reinsurance on a risk attaching basis is defined as a contract under which the reinsurer is liable for all claims related to policies issued or renewed during the term of the treaty.

• optimise reinsurance structures with a view to risk transfer and, if possible, also improve overall costs in economic and capital allocation terms;
• make reinsurance structures more efficient from a management point of view;
• mitigate risks, stabilising the variability of insurance business results;
• stabilise the olvency Ratio

he Group assesses the exposure of the insurance business under stress scenarios in order to verify the solvency of companies even under adverse market conditions, also in line with the olvency regulatory framework

Other non-significant insurance risks

From a technical point of view, one of the main risk factors characterising life underwriting risk is mortality risk, i e any risk related to the randomness of the life span of policyholders articular attention is paid in selling term life insurance policies, an area where procedures set underwriting limits to the capital and the age of the policyholder n terms of "pure life" insured amounts the Group's insurance companies transfer their risks to reinsurers in keeping with the nature of the products sold and conservation levels adequate to the companies' capital structure

For products with the capital sum subject to positive risk, such as term life insurance, this risk has negative consequences if the actual frequency of death exceeds the death probabilities realistically calculated (second order technical bases)

For products with the capital sum subject to negative risk, such as annuities, there are negative consequences when actual death frequencies are lower than the death probabilities realistically calculated (longevity risk)

hat said, at 31 December 2023, mortality risk is considered to be of modest significance for the Group, considering the characteristics of the products offered, although this risk represents almost the entire life underwriting risk for et nsurance Life pA, considering the characteristics of the products offered he only area where this risk is somewhat significant is term life insurance With reference to these products, a comparison is periodically made between actual deaths and those predicted by the demographic bases adopted for pricing On the basis of the above, for risk management purposes, it was decided not to subject mortality risk to sensitivity analysis, but to continuous monitoring over time in order to identify any changes in its significance in the context of the oste taliane Group

he longevity risk is also small, being represented by a small share of insurance exposures to class V (Long erm Care policies) n fact, for most Life insurance products the probability of annuity conversion is very close to zero, as historical experience shows that policyholders never use the option of annuity conversion ension products, in particular, still account for a limited share of insurance liabilities n addition, for these products, the Group may, if certain conditions materialise, change the demographic base and the composition by sex used to calculate the annuity rates

With regard to pricing risk, it is defined as the risk of incurring losses due to inappropriate pricing of the insurance products sold, for example: inappropriate choice of technical bases (demographic or financial), incorrect valuation of the options implicit in the products, and/or incorrect valuation of the parameters for calculating loadings for expenses As the products placed by the Group mostly relate to insurance contracts issued by oste Vita pA, i e mixed and whole-life policies with mostly cash value build-up features, accumulating in accordance with a technical rate of zero, the technical basis adopted does not affect premium calculation (and/or the insured capital) n fact, there is nearly no pricing risk associated with the choice between technical bases in the oste taliane Group's portfolio, except for the term life insurance products discussed above

nsurance risks in the &C business instead include:

Underwriting risk: this is the risk arising from the commitments entered into by the underwriting of insurance contracts, taking into account all the risks covered and the procedures used in the conduct of business his risk can be subdivided into provisioning risk, already mentioned in the previous paragraph, and pricing risk arising from the underwriting of

insurance contracts and associated with the events covered, the processes followed for underwriting and selecting risks, the processes followed for pricing, and the unfavourable trend in the actual loss ratio compared to the estimated one

Early termination risks: risk linked to the possibility of the policyholder's early termination of the contract with the consequent request for reimbursement of the premium his dynamic, unlike the one represented above for the lapse risk, does not depend directly on economic dynamics and the dynamic behaviour of policyholders, and is therefore less related to the current economic condition he specific risk of early repayment is not assessed at the oste taliane Group level as a significant risk because:

• it depends solely on the willingness to pay off insurance policies on mortgages and loans early, and does not depend directly on market income dynamics;
• is limited to a portfolio considered non-material, as this business is residual for the Group

Lastly, catastrophe risk, which represents the risk of loss resulting from extreme or exceptional events, including major epidemics covered by insurance, is considered as insignificant for the Group

Operational risk

Operational risk refers to the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events his category of risk includes losses resulting from fraud, human error, business disruption, systems failures, breach of contracts and natural disasters Operational risk includes legal risk

o protect against this form of risk, Banco osta RFC has formalised a methodological and organisational framework to identify, measure and manage the operational risk related to its products/processes

he framework, which is based on an integrated (qualitative and quantitative) measurement model, makes it possible to monitor and manage risk on an increasingly informed basis

n 2023, activities continued to refine the operational risk management framework, with the aim of making the process of recording operational losses, monitoring and reporting more efficient and mitigating such risks by cross-functional working groups upport has also been provided to the specialist units and the owner of the process of analysing and assessing risk, in keeping with the approach adopted in 2022, and the monitoring of risk recovery plans was reinforced

he activities carried out in 2023 also included assessments of the risk profile related to the assignment and outsourcing of B RFC, the definition of the model for monitoring outsourcing risk, and ex-ante assessments of the risk profile related to the innovation of B 's offering and/or specific project initiatives

At 31 December 2023, the risk map prepared in accordance with the aforementioned framework shows the type of operational risks Banco osta RFC's products are exposed to n particular:

2023 Annual Report

Event type Number of types

nternal fraud	28
xternal fraud	44
mployee practices and workplace safety	8
Customers, products and business practices	37
Damage caused by external events	4
Business disruption and system failure	8
xecution, delivery and process management	107
Total at 31 December 2023	236

For each type of mapped risk, the related sources of risk (internal losses, external losses, scenario analysis and risk indicators) have been recorded and classified in order to construct complete inputs for the integrated measurement model ystematic measurement of the mapped risks has enabled the prioritization of mitigation initiatives and the attribution of responsibilities in order to contain any future impact

he insurance companies in the Group have also drawn up and finalised their own framework for identifying, assessing and managing operational risks he adopted approach reflects the specific nature of the processes and operational risk events typical of an insurance company he process of assessing operational risk exposure is carried out in keeping with the related solvency requirements, and involves both qualitative and quantitative analysis, conducted through a structured process for identifying internal losses and assessing potential risks in terms of frequency, impact and mitigation he exposure to risks is, on the whole, in line with the previous year, and the main types of operating losses are related to customer litigation expenses

nergy business risks

n the energy business, the subsidiary oste ay is exposed to the following risks, which were appropriately mitigated at the balance sheet date:

• Price risk: this is the risk generated by any difference in price levels between the selling and buying position, managed through physical purchases of commodities at a fixed price, for which the Company has availed itself of the own use exemption;
• Volume risk: generated by the difference between the actual consumption of the sales portfolio and the notional initially planned, managed and supplied he risk is managed through careful forecasting of sales volumes and pricing of the risks themselves;
• Counterparty risk: defined as the risk arising from a supplier's failure to fulfil its contractual obligations to supply the physical commodity his risk is managed through a process of assessing the creditworthiness of counterparties;
• Credit risk: defined as the risk arising from a customer's failure to fulfil its payment obligations his risk is managed through input credit check processes (ex-ante assessment of creditworthiness), credit management and recovery

For the proper management of the above-mentioned risks, a special governance and monitoring structure has been established within the subsidiary oste ay he management and operational process of applying the governance principles requires that each risk subject to assessment is monitored using Key Risk ndicators Verification of the extent of these risks and the effectiveness of any mitigation actions taken is entrusted to a managerial and advisory committee, the Control and Risk Operating Committee dedicated to the energy business

Reputational risk

he main element of reputational risk to which the Group is, by its nature, exposed is linked to market performance and primarily associated with the placement of postal savings products and investment products issued by third-party entities (bonds, certificates and real estate funds) or by Group companies (insurance policies issued by the subsidiary, oste Vita pA, and mutual funds managed by Banco osta Fondi pA GR)

Climate change risks

he oste taliane Group is aware of the relevance in terms of its widespread presence within the territory in which it operates and the risks to which it is exposed n an attempt to counter these risks, considering the potential economic impacts of climate change risks, the Group:

• aims to reduce its environmental impact and contribute to the low-carbon transition of the country's economy; as well as
• adopts a responsible approach in carrying out its activities

For the proper management of environmental issues, a ustainability Committee has been set up to assist the Board of Directors, which approves the sustainability guidelines and strategies, supporting it in evaluating and deciding on environmental, social and governance factors

he oste taliane Group's approach to climate risk is reported extensively in the specific section of the on-Financial tatement within the Report on Operations on issues relating to the management of risks and opportunities related to climate change, to which reference should be made for a full discussion, as well as in ection 2 7 - Climate change and macroeconomic environment of these Annual Accounts

QUANTITATIVE INFORMATION - POSTE ITALIANE GROUP

As defined in the introduction, quantitative information on exposure to risks of various kinds is provided separately by operating segment

FINANCIAL ACTIVITIES

Fair value interest rate risk

	31 December 2022		31 December 2023
Description	Risk exposure		Risk exposure		Equity reserves before taxation
(€m)	Nominal	Fair value	Nominal	Fair value	+100bps	-100bps
Financial assets Financial assets at FV OC Derivative financial instruments	37,521 1,564	33,190 350	34,892 -	33,100 -	(1,045) -	1,069 -
Financial liabilities Derivative financial instruments	2,968	(96)	-	-	-	-
Total	42,053	33,444	34,892	33,100	(1,045)	1,069

Financial assets at fair value through other comprehensive income that are relevant to the risk in question relate to fixed income government bonds held primarily by Banco osta RFC with a total fair value of €33,100 million

At 31 December 2023, with reference to the interest rate risk exposure determined by the average financial duration of the portfolios28F ²⁸⁹, the duration of Banco osta's overall investments went from 5 01 to 5 38

rice risk

Financial Activities-Price risk

	31 December 2022	31 December 2023
Description (€m)	Risk exposure	Risk exposure	Profit/(Loss) before tax
			+ Vol	- Vol
Financial assets
Financial assets at FV L	40	26	4	(4)
Derivative financial instruments	(4)	(3)	(3)	3
Total	36	24	1	(1)

Financial assets at fair value through profit or loss exposed to price risk relate to shares held by Banco osta RFC, totalling €26 million consisting of Visa ncorporated preference shares For the purpose of the sensitivity analysis, the equities are matched with the corresponding amount of the Class A shares, considering the volatility of the shares listed on the Y

n the area of Derivative Financial Instruments, price risk mainly relates to the forward sale contract of 95,000 Visa ncorporated ordinary shares entered into by the arent Company

Foreign exchange risk

Financial Activities-Currency risk

	31 December 2022		31 December 2023
Description (€m)	Position in USD	Position in Euro	Position in USD	Position in Euro	Profit/(Loss) before tax
	Notional Notional		Notional	Notional	+ Vol 260 days	- Vol 260 days
Financial assets Financial assets at FV L	42	40	29	26	2	(2)
Derivative financial instruments	(4)	(4)	(3)	(3)	(2)	2
Total	38	36	26	24	0	(0)

At 31 December 2023, the financial assets exposed to the risk in question refer to an equity investment held by Banco osta RFC in Visa (€26 million), as well as to a derivative contract on the ordinary shares of Visa ncorporated entered into by the arent Company (negative fair value of €3 million at 31 December 2023)

pread risk

he financial year 2023 was characterised by a reduction in yields on talian government bonds (the 10-year B fell from 4 72% to 3 7%), which brought the B -Bund spread to 168 basis points compared to 214 last year hese movements led to an increase in the price of securities

he following is the result of the analysis of the sensitivity289F ²⁹⁰ to spread risk carried out at 31 December 2023, limited to the financial assets subject to the risk in question in the context of financial activities:

²⁸⁹ Duration is the indicator used to estimate the percentage change in price in response to a shift in market returns.

²⁹⁰ For sensitivity purposes, the swap rate curve and the BTP curve were used (10-year swap rate of 249 bps

Derivative financial

Financial liabilities Derivative financial

	31 December 2022			31 December 2023
Description (€m)	Risk exposure		Risk exposure		Equity reserves before taxation
	Nominal	Fair value	Nominal	Fair value	+100bps	-100bps
Financial assets
Financial assets at FV OC	37,521	33,190	34,892	33,100	(2,995)	3,510
Financial assets at FV L	-	-	-	-	-	-

instruments 2,968 (96) - - - - Total 42,053 33,444 34,892 33,100 (2,995) 3,510

instruments 1,564 350 - - - -

he portfolio of Financial assets at fair value through other comprehensive income held almost entirely by Banco osta RFC experienced a generally positive change in fair value of around €2 billion during the period, almost entirely recognised in consolidated equity for the portion of unhedged securities and the spread risk component (not hedged)

For the purposes of full disclosure, a movement in the spread would have no accounting effect on financial assets measured at amortised cost, but would only impact unrealised gains and losses n other words, fixed income instruments measured at amortised cost attributable entirely to Banco osta, which at 31 December 2023 amounted to €30,398 million (nominal value of €30,877 million) and have a fair value of €28,318 million, would be reduced in fair value by approximately €2 7 billion following an increase in the spread of 100 bps, with the change not reflected in the accounts

Movements in the spread have no impact on Banco osta RFC's ability to meet its capital requirements, as the fair value reserves are not included in the computation of own funds for supervisory purposes

Credit risk

nformation on credit risk exposure is presented in the following section only for financial assets other than trade and other receivables and assets subject to impairment provisions, for which information is provided in Note A8 - Trade receivables and Note A9 - Other receivables and assets

xposure to credit risk

he following table shows the credit risk exposure of Financial assets related to the financial segment for which the General impairment model is used for the application of the impairment provisions he analysis shows the exposure by financial asset class by stages he amounts refer to the gross carrying amount (amortised cost before CL), unless otherwise indicated, and do not take into account guarantees or other credit enhancements

Financial Activities - Credit Risk - Rating

Description	from AAA to AA-		from A+ to BBB-		from BB+ to C		Not	Hedge
(€m)	Stage 1	Stage 2	Stage 1	Stage 2	Stage 1	Stage 2	rated	accounting effects	Total
2023 Financial assets at amortised cost

and spread of the BTP against the 10-year swap rate of 121 bps).

-	-	44,289	-	-	-			44,289
-	-	(23)	-	-	-			(23)
-	-	44,266	-	-	-	351	(1,944)	42,673
-	-	35,544	-	-	-			35,544
-	-	(19)	-	-	-			(19)
-	-	33,100	-	-	-			33,100
195	-	45,953	-	-	-			46,149
-	-	(19)	-	-	-			(19)
195	-	45,935	-	-	-	486	(2,714)	43,902
-	-	38,981	-	-	-			38,981
-	-	(16)	-	-	-			(16)
-	-	33,190	-	-	-			33,190
								oste taliane's Financial tatements at 31 December 2023

Financial assets at amortised cost, relevant to the risk in question, refer only to Bancoposta RFC's assets and concern fixed income instrument with a gross carrying amount of €44,289 million, decreased by a total of €1,944 million to take into account the effects of fair value hedges and approximately €23 million of the related impairment provision

Financial Assets at fair value through other comprehensive income that are relevant to the risk in question refer exclusively to fixed income instruments held by companies belonging to the financial segment

he following table shows the counterparty concentration of credit risk by financial asset class

Financial Activities - Credit risk - Credit risk concentration

	31.12.2023	31.12.2022
Description (€m)	Gross carrying amount	Provision to cover expected losses	Gross carrying amount	Provision to cover expected losses
Financial assets at amortised cost	44,289	(23)	46,149	(19)
overeign	38,405	(21)	39,327	(17)
Corporate	4,937	(2)	5,354	(1)
Banking	946	-	1,468	(0)
Financial assets at FV OC	35,544	(19)	38,980	(16)
overeign	35,544	(19)	38,980	(16)
Corporate	-	-	-	-
Banking	-	-	-	-
Total	79,833	(42)	85,129	(35)

Collateral held and other credit enhancements

n order to mitigate credit risk, the oste taliane Group adopts credit and counterparty risk mitigation tools in its financial activities n particular, as regards Banco osta RFC, the counterparty risk associated with hedging derivatives and repurchase agreements is mitigated by entering into a master netting agreement and requiring collateral in the form of cash or government bonds; with reference to credit risk, in addition, there are safeguards such as government guarantees on securities

At 31 December 2023, the Group does not hold financial instruments secured by guarantees or other risk mitigation instruments for which no loss provisions have been made (except for the temporary use of liquidity in repurchase agreements)

n the context of financial activities, the main types of credit risk mitigation instruments are detailed below

Fixed income instruments

Debt instruments secured by guarantees or other credit risk mitigation instruments are bonds issued by CD pA guaranteed by the talian tate and subscribed by Banco osta RFC, amounting to a nominal value of €3,000 million at 31 December 2023 hese are recognised as financial assets measured at amortised cost and, in determining the expected credit losses, account was taken of the D of the talian Republic

Derivative financial instruments and repurchase agreements

n order to limit the counterparty risk exposure, Banco osta RFC has concluded standard DA master agreements (with attached C A) and GMRAs which govern the collateralisation of derivative transactions and repurchase agreements, respectively

n addition, in order to mitigate counterparty risk and gain easier access to the market, from December 2017, Banco osta RFC has entered into repurchase agreements with the Central Counterparty, the Cassa di Compensazione e Garanzia As of 2021, certain derivatives entered into by Bancoposta RFC through bilateral contracts will be routed to a Qualified Central Counterparty for centralised clearing through the services provided by a clearing broker

he calculation of positions in derivatives and repurchase agreements and the related risk mitigation instruments are illustrated in "Note 13 - Additional information - Offsetting financial assets and liabilities", to which reference should be made

CL measurement

he following tables show, for Financial assets belonging to the financial segment, the reconciliation between the opening and closing balances of the CL provisions required by FR 9

Financial Activities - Credit risk - Details of the provision to cover expected losses on financial
instruments

Description	Financial assets at amortised cost		Financial assets at FVOCI
(€m)	Stage 1	Total	Stage 1	Total
Balance at 1 January 2023	19	19	16	16
mpairment of securities / receivables held at the beginning of the period	3	3	3	3
Reversal of securities / receivables held at the beginning of the period	(0)	(0)	(1)	(1)
mpairment of securities / receivables purchased/paid in the period	2	2	2	2
Reversal for write-off	-	-	-	-
Reversal due to sale / collection	(0)	(0)	(2)	(2)
Balance at 31 December 2023	23	23	19	19

At 31 December 2023, estimated expected losses on Financial assets at amortised cost amount to approximately €23 million; the provision increased by roughly €5 million compared to 31 December 2022 Of the grand total, €18 million related to expected losses calculated on fixed income instruments (€13 million at 31 December 2022)

At 31 December 2023, estimated expected losses on Financial assets at fair value through other comprehensive income amount to approximately €19 million his provision, which refers entirely to expected losses calculated on fixed income instruments in the portfolio, increased by approximately €3 million compared to 31 December 2022

Liquidity risk

he following tables compare financial liabilities and assets belonging to the financial segment and outstanding at 31 December 2023

Financial Activities - Liquidity risk - Liabilities

	31.12.2023				31.12.2022
Description (€m)	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial liabilities	37,391	19,431	26,290	83,112	45,274	21,080	26,967	93,321
rade payables	73	-	-	73	81	-	-	81
Other liabilities	234	1,756	0	1,990	86	1,738	-	1,824
Total Liabilities	37,697	21,187	26,290	85,174	45,441	22,818	26,967	95,226

n the presentation of financial liabilities, the expected cash outflows at the date of the financial statements, are broken down by maturity, while the payables for postal current account deposits are reported on the basis of the estimates made with a statistic/econometric model Repayments of principal at nominal value are increased by interest payments calculated, where applicable, on the basis of the yield curve applicable at 31 December 2023

Financial Activities - Liquidity risk - Assets

	31.12.2023				31.12.2022
Description (€m)	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial assets	19,866	19,155	76,154	115,175	24,336	19,317	80,653	124,306
rade receivables	588	-	-	588	375	-	-	375
Other receivables and assets	603	1,752	0	2,356	571	1,738	0	2,309
ax credits Law no 77/2020	1,701	4,905	2,241	8,847	1,506	5,267	2,972	9,746
Cash and deposits attributable to Banco osta	4,671	-	-	4,671	5,848	-	-	5,848
Cash and cash equivalents (*)	940	-	-	940	2,018	-	-	2,018
Total Assets	28,368	25,812	78,396	132,576	34,654	26,322	83,626	144,602

(*) shown gross of liquidity elimination

n the case of assets, cash inflows are broken down by maturity, shown at nominal value and increased, where applicable, by interest receivable nvestments include financial instruments held by Banco osta RFC and, to a residual extent, the company Banco osta Fondi pA sgr, shown on the basis of expected cash flows, consisting of principal and interest paid at the various payment dates

n terms of Banco osta RFC's specific operations, the liquidity risk regards current account deposits and prepaid cards290F 291 , the related investment of the deposits in urozone government securities and/or securities guaranteed by the talian government, and the margins on derivative transactions as well as tax credits acquired in relation to the Decreto Rilancio no 34/2020 (later converted with Law no 77 of 17 July 2020) he potential risk derives from a mismatch between the maturities of investments in securities and those of liabilities, represented by current accounts where the funds are available on demand, thus compromising the ability to meet its obligations to current account holders his potential mismatch between assets and liabilities is monitored via comparison of the maturity schedule for assets with the statistical model of the performance of current account deposits, in accordance with the various likely maturity schedules and assuming the progressive total withdrawal of deposits over a period of twenty-four years for retail customers, six years for business customers, ten years for oste ay cards and six years for ublic Administration customers

Lastly, for the proper evaluation of the liquidity risk attributable to Banco osta RFC, it should be borne in mind that, unless they are restricted, investments in euro area government securities are highly liquid assets and can be used as collateral in interbank repurchase agreements to obtain short-term financing his practice is normally adopted by Banco osta

n order to effectively manage the risk in question, there are also uncommitted credit facilities available for overnight operations by Banco osta RFC, a three-year committed facility granted by Cassa Depositi e restiti for repurchase agreement transactions up to a maximum of €3 billion, undrawn at 31 December 2023 and, finally, for intraday interbank transactions, Banco osta RFC can access an intraday advance from the Bank of taly and secured by securities with a nominal value of €2,758 million, undrawn at 31 December 2023

Additional liquidity needs can be met by resorting to credit lines stipulated by the arent Company, for details of which please refer to the section on liquidity risk of postal and business activities

Based on the above information, the existing credit lines and the loans are adequate to meet financing requirements expected to date

²⁹¹ Since 1 October 2018, prepaid cards are the responsibility of Postepay SpA. The liquidity raised through these cards is transferred to BancoPosta, which invests the funds raised in euro area government bonds or bonds guaranteed by the Italian State. As such, for the purposes of specific risk analyses, the rationales related to each model underlying the different types of deposit inflow continue to apply.

Cash flow interest rate risk

	31 December 2022	31 December 2023
Description (€m)	Risk exposure	Risk exposure	Profit/(Loss) before tax
	Nominal	Nominal	+100 bps	-100 bps
Financial assets
Financial assets at amortised cost	22,480	16,616	166	(166)
Financial assets at FV OC	10,541	8,905	89	(89)
Financial assets at FV L Cash and deposits attributable to	-	-	-	-
Banco osta	1,888	762	8	(8)
Cash and cash equivalents	1,993	875	9	(9)
Financial liabilities
Loans	(3,996)	(3,996)	(40)	40
Other financial liabilities	(4,824)	(2,831)	(28)	28
Total	28,081	20,330	203	(203)

With respect to financial assets, cash flow interest rate risk primarily relates to:

• Financial assets at amortised cost are represented by:

• o receivables at amortised cost totalling €1,223 million, reflecting collateral posted to secure liabilities arising in relation to financial derivatives and repurchase agreements held by Banco osta RFC;
• o investment by the arent Company of the funds deriving from the current account deposits of ublic Administration entities in the following: deposits with the M F, with a nominal value of €8,937 million;
• o fixed income government bonds held by Banco osta RFC, for a nominal value of €6,456 million;
• fixed income government bonds measured at fair value through other comprehensive income, almost entirely relating to Bancoposta RFC;
• bank deposits held by Banco osta RFC, including €873 million for the deposit held with the M F on the operating current account known as the "Buffer" account

n the area of Financial Liabilities, the risk in question relates to loans for repurchase agreements put in place by the arent Company and guarantee deposits referable exclusively to the arent Company

Cash flow inflation risk

At 31 December 2023, cash flow inflation risk relates to inflation-linked government securities not subject to cash flow hedges or fair value hedges, held entirely by Banco osta RFC for a nominal amount of €1,301 million (€1,022 million at 31 December 2022) he results of the sensitivity analyses performed on these securities do not show any significant effects on the pre-tax result

INSURANCE ACTIVITIES

n relation to insurance liabilities, given the way in which they are constructed, it is impractical to identify which component of the unit of account is exposed to individual risks of a financial nature, also in relation to the concept of mutuality that governs the products issued by the Group (for the definition of "mutuality", please refer to what is presented in ection 2 4

• Changes to accounting policies) For this reason, the Group's exposure to risks is represented by the totality of its insurance liabilities, which are therefore subjected to individual stresses, assessing their impacts as a whole

Fair value interest rate risk

Insurance Activities - Fair value interest rate risk

	Risk exposure
Description (€m)	31 December 2022		31 December 2023
	Nominal	Fair value	Nominal	Fair value
Financial assets	114,584	132,593	118,850	146,477
Financial assets at FV OC	110,471	96,501	114,434	105,847
Financial assets at FV L*	4,113	36,092 -	4,416 -	40,630 -
nsurance liabilities		141,380	-	155,338

* Financial assets at FV L include Mutual investment funds; the nominal value of said funds indicates the number of units held without taking into account the face value of the equity security

n terms of financial assets recognised at fair value through other comprehensive income, the risk in question primarily relates to:

• fixed income government bonds held by oste Vita pA, totalling €86,096 million; of this amount, €83,976 million is used to cover Class and V policies linked to eparately Managed Accounts, and €2,120 million relates to the company's free capital;
• non-government debt securities held by oste Vita pA, for a total fair value of €18,991 million, mainly used to meet obligations towards policyholders;
• the remainder relates to approximately €760 million in investments in fixed income instruments, both government and corporate exposures made by the other companies in the segment

Financial assets at fair value through profit or loss, relevant to the risk in question, are primarily used to cover commitments to policyholders his relates to a portion of investments invested in fixed income instruments totalling €2,564 million, of which €2,556 million related to oste Vita, and to the position in Other investments totalling €38,044 million consisting mainly of units in Class funds and multi-asset funds linked to eparately Managed Accounts Finally, the remaining €22 million is represented by the bond issued by Cassa Depositi e restiti as a private placement

he insurance liabilities relevant to the risk in question relate to insurance contracts placed by companies belonging to the segment, totalling €155,338 million

With respect to Class and Class V policies sold by oste Vita pA, the duration of the matching assets went from 6 95 at 31 December 2022 to 6 27 at 31 December 2023, whilst the duration of the liabilities went from 7 50 to 7 45 (assessment of the duration was carried out using the new Coherent Duration method291F ²⁹²) he financial instruments intended to cover the technical provisions for Class policies have maturities that match those of the liabilities

²⁹² The Coherent Duration of assets and liabilities is defined as changes in the value of assets and liabilities, in proportion to the total amount of assets exposed to interest rate risk, following parallel shocks raising and lowering interest rates by 10 basis points.

Below is the result of the sensitivity analysis performed at 31 December 2023 on the assets and liabilities exposed to the risk in question

Insurance Activities - Stress Effects - Fair Value Interest Rate Risk

Description	Change in value
(€m)	+100bps	-100bps
Contractual service margin	(17)	(296)
rofit/(Loss) before tax	12	(56)
quity reserves before taxation	(135	152

he results of the sensitivities29F ²⁹³ show that:

• As a result of the increase in the rate curve, there would be a negative change in the Contractual service margin of €17 million due to capital losses impacting the returns of products linked to the eparately Managed Accounts; an increase in the profit/(loss) before tax of €12 million arising from the higher release of the Contractual service margin determined by the increase in the coverage unit, only partly offset by the financial result293F ²⁹⁴; and finally, a negative change in quity reserves of €135 million generated by the decrease in the financial result of FVOC securities not retroceded to policyholders
• as a result of the decrease in the interest rate curve, there would be a negative change in the Contractual service margin of €296 million due to a reduction in commissions on assets under management; a negative impact of €56 million on the profit/(loss) before tax due to the lower Contractual service margin as a result of the reduction in the coverage unit, partially offset by the financial result; and finally a positive change of €152 million in OC Reserves generated mainly by the increase in the financial result of FVOC securities not retroceded to policyholders

²⁹³ For sensitivity purposes, the swap component was stressed by the end-2023 risk-free curve as published by EIOPA.

²⁹⁴ IFRS9 income from FVTPL securities not retroceded to policyholders.

rice risk

Insurance Activities - Price Risk

	Risk exposure
Description (€m)	31 December 2022	31 December 2023
Financial assets Financial assets at FV OC	36,156 -	40,785 -
Financial assets at FV L*	36,156	40,785
nsurance liabilities	141,099	154,560

* Financial assets at FV L include Mutual investment funds; the nominal value of said funds indicates the number of units held without taking into account the face value of the equity security

he Financial assets at fair value through profit or loss exposed to the risk in question refer to:

• investments in units of mutual investment funds held by oste Vita pA, with a fair value of €40,300 million, including approximately €28,392 million used to cover Class policies, and approximately €11,908 million used to cover Class policies;
• equity instruments held by oste Vita pA, totalling €485 million, used to cover Class policies linked to eparately Managed Accounts and to cover Class policies

Insurance liabilities exposed to the risk in question refer to insurance contracts placed by Group companies with investments in assets exposed to the risk in question, i e oste Vita pA, totalling €154,560 million

Below is the result of the sensitivity analysis performed at 31 December 2023 on the instruments exposed to the risk in question:

Insurance Activities- Stress Effects - Price Risk

Description	Change in value
(€m)	+25%	-25%
Contractual service margin	266	(282)
rofit/(Loss) before tax	28	(30)
quity reserves before taxation	-	-

he results of the sensitivities show that:

• in the scenario characterised by the increase in the value of market prices, the sensitivity results show an increase in the Contractual service margin of approximately €266 million as a result of the increase in commissions received on investments relating to the unit-linked portfolio, as well as an increase in profit/(loss) before tax of approximately €28 million as a result of the combined effect of a higher release of Contractual service margin (due to the increase in the stock) and a higher financial result for the portion not retroceded to policyholders;
• the opposite scenario, i e characterised by a decrease in the value of market prices, would entail a decrease in the Contractual service margin of approximately €282 million as a result of the simultaneous decrease in commissions received on investments relating to the unit-linked portfolio, and a decrease in profit/(loss) before tax of approximately €30 million as a result of the combined effect of the lower release of Contractual service margin (due to the reduction in the stock) and lower financial result, for the portion not retroceded to policyholders

Foreign exchange risk

Insurance Activities - Currency Risk

	31 December 2022	31 December 2023
Description (€m)	Position in USD	Position in Euro	Position in USD	Position in Euro	Profit/(Loss) before tax
					+ Vol 260 days	- Vol 260 days
Financial assets Financial assets at FV OC Financial assets at FV L	- 106	- 99	- 106	- 95	- 7	- (7)
Total	106	99	106	95	7	(7)

n the insurance business, the Financial assets exposed to the risk in question refer exclusively to units in U dollar mutual funds held by the insurance company oste Vita pA he company considers the exposure to currency risk in relation to the effects on insurance liabilities to be insignificant, as these positions are held in eparately Managed Accounts

Government spread risk

Insurance Activities - Fair Value Government Spread Risk

	Risk exposure
Description (€m)	31 December 2022		31 December 2023
	Nominal	Fair value	Nominal	Fair value
Financial assets	90,445	87,309	95,331	99,021
Financial assets at FV OC	89,303	77,726	94,007	86,663
Financial assets at FV L*	1,142	9,583	1,324	12,358
Derivative financial instruments	-	-	-	-
nsurance liabilities		141,380		155,338

* Financial assets at FV L include Mutual investment funds; the nominal value of said funds indicates the number of units held without taking into account the face value of the equity security

n the period under review, the portfolio of Financial assets at fair value through other comprehensive income exposed to the risk in question, referring exclusively to fixed income government bonds, amounted to €86,663 million

Financial assets at fair value through profit or loss exposed to the risk in question, amounting to a fair value of about €12,358 million, mainly refer to units of mutual funds held by oste Vita pA

Insurance liabilities exposed to risk amount to approximately €155,338 million

Insurance Activities - Fair Value Government Spread Risk

Description	Change in value
(€m)	+100bps
Contractual service margin	(95)

2023 Annual Report
Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023

rofit/(Loss) before tax	13
quity reserves before taxation	(92)

he results of the sensitivities294F ²⁹⁵ show a negative change in the Contractual service margin of approximately €95 million due to capital losses impacting the returns of the underlying assets related to the portfolios of the eparately Managed Accounts; a positive effect on profit/(loss) before tax of €13 million, mainly attributable to the higher release of the Contractual service margin determined by the increase in the coverage unit, partially offset by the financial result; and, finally, a negative change in quity reserves of €92 million, generated by the deterioration of the financial result of FVOC instruments not retroceded to policyholders, which represent the majority of securities under stress

Corporate spread risk

Insurance Activities - Fair Value Corporate Spread Risk

	Risk exposure
Description (€m)	31 December 2022		31 December 2023
	Nominal	Fair value	Nominal	Fair value
Financial assets	25,267	54,853	24,830	59,800
Financial assets at FV OC	21,168	18,775	20,427	19,184
Financial assets at FV L*	4,100	36,079	4,403	40,616
Derivative financial instruments	-	-	-	-
nsurance liabilities		141,380	-	155,338

* Financial assets at FV L include Mutual investment funds; the nominal value of said funds indicates the number of units held without taking into account the face value of the equity security

he portfolio of Financial assets at fair value through other comprehensive income exposed to this risk amounted to approximately €19,184 million, exclusively related to corporate debt security exposures

Financial assets at fair value through profit or loss exposed to risk amounted to approximately €40,616 million, of which €38,004 million related to mutual funds held by oste Vita pA, €2,550 million to exposures in debt securities issued by corporate counterparties, and €22 million to bonds issued by Cassa Depositi e restiti

²⁹⁵ For the purposes of sensitivity on government bonds, the end-2023 risk-free curve was used as published by EIOPA with the Illiquidity Premium calibrated to the outstanding government portfolio and including the 100bps stress on the Italian government spread.

nsurance liabilities exposed to risk amount to approximately €155,338 million

Insurance Activities - Fair Value Corporate Spread Risk

Description	Change in value
(€m)	+100bps
Contractual service margin	(149)
rofit/(Loss) before tax	(18)
quity reserves before taxation	(19)

he results of the sensitivities295F ²⁹⁶, lead to a negative change in the Contractual service margin of approximately €149 million, due to capital losses impacting the returns of the underlying assets; a loss before tax of €18 million due to the reduction in the financial result and, finally, a negative change of €19 million in the quity reserves, generated by the worsening of the financial result of the FVOC securities not retroceded to policyholders

Credit risk

nformation on credit risk exposure is presented in the following section only for financial assets other than trade and other receivables and assets subject to impairment provisions, for which information is provided in Note A8 - Trade receivables and Note A9 - Other receivables and assets

xposure to credit risk

he following table presents an analysis of the risk exposure at 31 December 2023 of financial assets belonging to the insurance segment for which the General impairment model is used he analysis shows the exposure by financial asset class by stages he amounts refer to the gross carrying amount (amortised cost before CL), unless otherwise indicated, and do not take into account guarantees or other credit enhancements

²⁹⁶ For the purposes of sensitivity on corporate bonds, the risk-free curve of end-2023 as published by EIOPA was used, with the Illiquidity Premium calibrated to the outstanding corporate portfolio and including the 100 bps stress on the corporate spread.

Insurance Activities - Credit Risk - Rating

Description	from AAA to AA-		from A+ to BBB-		from BB+ to C
(€m)	Stage 1	Stage 3	Stage 1	Stage 2	Stage 1	Stage 2	Stage 3	Total
2023
Financial assets at amortised cost
Gross carrying amount	133	-	1,988	-	2	0	-	2,124
rovision to cover expected losses	(0)	-	(1)	-	(0)	(0)	-	(1)
Total amortised cost at 31 December 2023	133	-	1,987	-	2	0	-	2,123
Financial assets at FVTOCI
Gross carrying amount	13,486	-	95,735	46	20	2,640	124	112,051
rovision to cover expected losses - OC	(1)	-	(44)	(0)	(0)	(8)	(2)	(55)
Carrying amount - Fair value at 31 December 2023	13,103	-	90,072	44	20	2,493	114	105,847
2022
Financial assets at amortised cost
Gross carrying amount	54	209	1,930	-	-	-	-	2,194
rovision to cover expected losses	-	(0)	(1)	-	-	-	-	(1)
Total amortised cost at 31 December 2022	54	209	1,929	-	-	-	-	2,193
2022
Financial assets at FVTOCI
Gross carrying amount	8,709	-	97,615	13	2,058	58	-	108,454
rovision to cover expected losses - OC	(0)	-	(39)	(0)	(8)	(2)	-	(48)
Carrying amount - Fair value at 31 December 2022	7,650	-	86,973	12	1,815	51	-	96,501

Financial assets at amortised cost, relevant to the risk in question, refer exclusively to fixed income instruments held by companies belonging to the insurance segment with a gross carrying amount of €2,123 million, decreased by a total of €1 million to account for the related impairment provision in the Company's free assets

Financial assets at fair value through other comprehensive income that are relevant to the risk in question refer for a gross carrying amount of €112,051 million exclusively to fixed income instruments

he following table shows the counterparty concentration of credit risk by financial asset class Amounts refer to the gross carrying amount Of the provision to cover expected losses on financial instruments at fair value through other comprehensive income, an amount of approximately €53 million was retroceded to policyholders

Insurance Activities - Credit risk - Credit risk concentration

	31.12.2023		31.12.2022
Description (€m)	Provision to cover Gross carrying amount expected losses		Gross carrying amount	Provision to cover expected losses
Financial assets at amortised cost	2,124	(1)	2,194	(1)
overeign	2,050	(1)	2,143	(1)
Corporate	64	(0)	42	(0)
Banking	9	(0)	9	(0)
Financial assets at FV OC	112,051	(55)	108,454	(48)
overeign	88,892	(38)	85,677	(32)
Corporate	16,270	(14)	14,933	(14)
Banking	6,889	(3)	7,844	(2)
Total	114,175	(56)	110,648	(49)

he following table presents information on the credit quality of net amounts due from reinsurers and the exposure of assets for outward reinsurance (totalling €233 million) and amounts due from policyholders, classified under insurance

liabilities and amounting to €155,338 million (of which €170 million related to the balance of amounts due from customers at 31 December 2023):

CL measurement

he following tables show, for each class of financial instrument, the reconciliation between the opening and closing balances of the CL provisions required by FR 9, relating exclusively to the free capital of the companies in the segment

Insurance Activities - Credit risk - Details of the provision to cover expected losses on financial instruments

Description	Financial assets at amortised cost				Financial assets at FVOCI
(€m)	Stage 1	Stage 2	Stage 3	Total		Stage 1 Stage 2		Stage 3	Total
Balance at 1 January 2023	1	-	-	1		1	-	-	1
mpairment of securities / receivables held at the beginning of the period	0	0	0	0	0	0	0	0	0
Reversal of securities / receivables held at the beginning of the period	(0)	0	0	0	0	0	0	0	(0)
mpairment of securities / receivables purchased/paid in the period	0	0	0	0	0	0	0	0	0
Reversal for write-off		0	0	0	0	0	0	0	(0)
Reversal due to sale / collection	(0)	0	0	0	0	0	0	0	(0)
Balance at 31 December 2023	1	-	-	1		1	0	-	2

At 31 December 2023, estimated expected losses on financial instruments at amortised cost amount to approximately €1 million; the provision did not record any significant changes compared to 31 December 2022

At the end of the reference period, the estimated expected losses on financial instruments measured at fair value through other comprehensive income amount to approximately €55 million, of which €53 million passed on to policyholders his provision increased by approximately €7 million compared to 31 December 2022, mainly as a result of purchases made during the period

Collateral held and other credit enhancements

n order to mitigate the exposure to credit risk, the oste Vita insurance Group invests in, among other things, corporate bonds that are guaranteed in order to mitigate the overall exposure to credit risk

At 31 December 2023, the insurance Group does not hold financial assets secured by guarantees or other credit risk mitigation instruments for which no loss coverage provisions have been made

Within insurance activities, the main types of credit risk mitigation instruments relate to fixed income instruments held by insurance companies n detail, debt securities backed by guarantees or other credit risk mitigation instruments are mainly represented by bonds held by the oste Vita Group, with a nominal amount of €6,485 million at 31 December 2023 n these cases, the guarantee covers 100% of the nominal value of the securities he guarantees securing these financial instruments are as follows:

• corporate bonds backed by personal guarantees provided by the parent company or another associate, amounting to a nominal value of €5,569 million;
• covered bonds backed by mortgages, primarily property mortgages, amounting to a nominal value of €179 million;
• bonds guaranteed by sovereign states, amounting to a nominal value of €737 million

n the case of instruments backed by personal guarantees provided by a sovereign state or one or more companies, expected losses are calculated on the basis of the credit rating of the guarantor With regard to covered bonds, the underlying guarantees were considered through the recognition of upgrades according to the type of guarantee

he following table presents an analysis of the risk exposure under review at 31 December 2023, by counterparty rating

Insurance Activities - Credit Risk - Rating

Description (€m)	from AAA to AA	from A+ to BBB	from BB+ to C	Not rated	Total
2023
Assets for outward reinsurance					233
- of which net Amounts due from reinsurers	-		- -	-	-
nsurance liabilities					155,338
- of which due from policyholders	-		- -	170	170
2022
Assets for outward reinsurance					44
- of which net Amounts due from reinsurers	1		0 (0)	(0)	0
nsurance liabilities					141,380
- of which due from policyholders	-		- -	110	110

class, generated as a result of the placement of insurance and reinsurance contracts in place

Assets for outward reinsurance that are relevant to the risk in question refer to the component of the item relating to the net exposure to reinsurers, which is included in the valuation hese receivables are not subject to impairment as the credit or debit balance is used to offset the payment or collection of reinsurance items he reinsurance structure has very tight deadlines, annual at most, so the possibility of balances remaining unpaid for a period longer than 12 months is remote Moreover, since these receivables are related to contracts falling under FR 17, they must not be impaired as required by FR 9 At 31 December 2023, the balance of these net receivables was nil, as the exposure to reinsurers was a liability at the balance sheet date

he insurance liabilities that are taken into account in the valuation of this risk refer to the component relating to amounts due from policyholders Amounts due from policyholders relate to contracts issued at the reporting date for which the customer has not yet paid the premium As is the case for net amounts due from reinsurers, this type of receivable arises as a result of insurance contracts, and is therefore not subject to impairment as required by FR 9 n any case, the Group performs recoverability analyses of the receivable in question, and in fact a full write-down of the receivable is made if it is more than 6 months old

Liquidity risk

he following tables compare the financial liabilities and assets belonging to the insurance segment and outstanding at 31 December 2023

Insurance Activities - Liquidity Risk - Liabilities

Description (€m)	Within 12 months	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	Between 4 and 5 years	Over 5 years	Total
2023 Flows from oste Vita group's policies	10,574	9,053	8,543	8,523	9,930	175,196	221,818
Financial liabilities	59	-	-	-	-	-	59
rade payables	41	-	-	-	-	-	41
Other liabilities	702	3	-	-	-	74	778
Total at 31 December 2023	11,375	9,056	8,543	8,523	9,930	175,270	222,697
2022 Flows from oste Vita group's policies	14,494	10,384	8,984	8,098	7,885	171,345	221,191
Financial liabilities rade payables	38 35	1 -	1 -	- -	- -	- -	40 35
Other liabilities	567	-	-	-	54	-	621
Total at 31 December 2022	15,135	10,385	8,986	8,098	7,939	171,345	221,887

n the presentation of financial liabilities, expected cash outflows are broken down by maturity Repayments of principal at nominal value are increased by interest payments calculated, where applicable, on the basis of the yield curve applicable at 31 December 2023 he commitments of the insurance companies of the Group are reflected in the item "Flows from Poste Vita group's policies"

Description (€m)	Within 12 months	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 4 years	Between 4 and 5 years	Over 5 years	Total
2023
Financial assets	19,132	13,159	11,588	13,843	12,861	173,474	244,057
rade receivables	2	-	-	-	-	-	2
Other receivables and assets	134	-	-	-	-	2,280	2,414
Cash and cash equivalents (*)	3,561	-	-	-	-	-	3,561
Total at 31 December 2023	22,830	13,159	11,588	13,843	12,861	175,754	250,035
2022
Financial assets	16,690	12,345	12,378	10,867	12,564	165,710	230,554
rade receivables	0	-	-	-	-	-	0
Other receivables and assets Cash and cash equivalents (*)	223 2,732	- -	- -	- -	2,321 -	- -	2,544 2,732
Total at 31 December 2022	19,645	12,345	12,378	10,867	14,885	165,710	235,830

Insurance Activities - Liquidity Risk - Assets

* hown gross of liquidity elimination

n the case of assets, cash inflows are broken down by maturity, shown at nominal value and increased, where applicable, by interest receivable nvestments include financial instruments held by the Group's insurance companies, shown on the basis of expected cash flows, consisting of principal and interest paid at the various payment dates

he key point of note is the liquidity risk associated with the Class and V policies issued by oste Vita pA For said reason, for the purpose of analysis of the liquidity risk, for the policies issued by oste Vita pA, Asset/Liability Management (ALM) analyses are conducted to manage assets effectively in relation to its obligations to policyholders, and projections

of the effects deriving from financial market shocks (asset dynamics) and of the behaviour of policyholders (liability dynamics) are also drawn up

At 31 December 2023, there were uncommitted credit lines for unsecured loans of €4 million, of which about €1 million was utilised

Additional liquidity needs can be met by resorting to credit lines stipulated by the arent Company, for details of which please refer to the section on liquidity risk of postal and business activities

Based on the above information, the existing credit lines and the loans are adequate to meet financing requirements expected to date

Cash flow interest rate risk

Insurance Activities - Cash flow interest rate risk
	31 December 2022	31 December 2023
Description	Risk exposure	Risk exposure	Profit/(Loss) before tax
(€m)	Nominal	Nominal	+100 bps	-100 bps
2023 effects
Financial assets
Financial assets at FV OC	4,341	3,332	2	(2)
Financial assets at FV L	94	112	-	-
Cash and cash equivalents	2,537	2,852	7	(7)
Total	6,971	6,296	9	(9)

With respect to Financial assets, cash flow interest rate risk concerns:

• a portion of the securities portfolio held by oste Vita pA, with a total nominal value of €3,361 million, mainly relating to fixed income instruments;
• a portion of the securities portfolio held by oste Assicura pA, with a total nominal value of €67 million;
• a portion of the securities portfolio held by et nsurance pA and et nsurance Life pA, with a total nominal value of €16 million;
• variable-rate bank deposits held by companies in the insurance segment

With regard to insurance liabilities, the Group considers that the risk exposure does not entail a significant risk and, for this reason, deemed it inappropriate to stress

Cash flow inflation risk

Insurance Activities - Cash flow inflation rate risk

	31 December 2023
Description	31 December 2022 Risk exposure	Risk exposure		Profit/(Loss) before tax
(€m)	Carrying Nominal amount		Nominal	Carrying amount	+100bps	-100bps
Financial assets
Financial assets at amortised cost	72	89	72	91	0	(0)
Financial assets at FV OC	9,159	10,389	6,676	7,893	1	(1)
Financial assets at FV L	-	-	-	-	-	-
Total	9,232	10,478	6,748	7,984	1	(1)

At 31 December 2023, cash flow inflation risk relates to inflation-linked government securities not subject to cash flow hedges or fair value hedges Of the total nominal value, securities totalling €6,701 million are held by oste Vita pA and securities totalling €41 million by oste Assicura pA

With regard to insurance liabilities, the Group considers that the risk exposure does not entail a significant risk and, for this reason, deemed it inappropriate to stress

Lapse risk

he sensitivity analysis at 31 December 2023 took into account insurance liabilities exposed to fluctuations in value and subjected to a variability test, calculated with reference to possible changes in the lapse risk (increase of 10%) xposures to this risk are set out below:

Insurance Activities - Lapse Risk
	31 December 2022			31 December 2023
Description (€m)	Risk exposure	Risk exposure	Contractual service margin	Profit/(Loss) before tax	Equity reserves before taxation
	Fair value	Fair value	+10%	+10%	+10%
nsurance liabilities	141,099	154,560	(390)	(7)	-

he sensitivity analysis shows that a possible 10% increase in the lapse rate would generate a negative change in the Contractual service margin of €390 million, mainly attributable to the reduction in the duration of the liabilities due to the higher outflows, and a negative change in the profit/(loss) before tax of €7 million, mainly attributable to the lower release of C M resulting from the reduction in the stock

he effects net of reinsurance mitigation are substantially in line with what is presented in the table since the existing cover is not activated in the event of a 10% increase in the lapse rate

With regard to the investment in Cronos Vita, which is recognised in the balance sheet at its acquisition value, as defined by IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations, please refer to paragraph A14 - on-current assets and disposal groups held for sale

rovisioning risk

he sensitivity analysis at 31 December 2023 took into account insurance liabilities exposed to fluctuations in value and subjected to a variability stress test, based on actual volatility during the year, calculated with reference to possible changes in the loss ratio (up/down by 2%) Below are the exposures and this risk both gross and net of the mitigation effect related to reinsurance:

		31 December 2022	31 December 2023
Description (€m)	Risk exposure		Risk exposure		Contractual service margin		Profit/(Loss) before tax		Equity reserves before taxation
	Nominal	Fair value	Nominal	Fair value	+2%	-2%	+2%	-2%	+2%	-2%
nsurance liabilities		279		499	(2)	2	(2)	2	-	-

he sensitivity analysis shows that a possible 2% increase in the loss ratio would generate a reduction in the Contractual service margin of about €2 million and a reduction in the profit/(loss) before tax of about €2 million, attributable to the negative change in the loss component he values net of reinsurance are in line with the gross values shown

he sensitivity analysis for the opposite case, i e a possible decrease in the loss ratio of 2%, would generate an increase in the Contractual service margin before reinsurance of about €2 million, an increase in the profit/(loss) before tax of about €2 million, attributable to the recovery of the loss component, and a positive change in quity of about €2 million, generated almost entirely by the increase in the profit/(loss) for the year he values net of reinsurance are in line with the gross values shown

Concentration risk

As regards the Life business, the products currently placed have fairly standardised characteristics and relatively low minimum guarantees for the majority of the portfolio that are not consolidated year by year he geographical distribution of these products is homogeneous throughout the country as a result of the widespread distribution network he Group's product portfolio is still highly concentrated in traditional build-up products On the basis of these considerations, the risk of concentration of the Life business is medium

Below is a representation of the concentration of life business at 31 December 2023 by product type, where it can be seen that the highest concentration of risks relates to build-up products ( eparately Managed Accounts)

Insurance Activities - Concentration Risk - Life

Product type	31 December 2023
roducts linked to eparately Managed Accounts	92%
rotection products	0%
ndex/Unit-linked products	8%

With regard to &C business, the products currently placed by the Group have fairly standardised characteristics he geographical distribution of these products is homogeneous throughout the country as a result of the widespread distribution network he product portfolio is mainly concentrated on health products (Line of business Medical xpenses and ncome rotection) On the basis of these considerations, the risk of concentration of the &C business is medium

Below is a breakdown of gross inflows at 31 December 2023 by product type, which shows that the highest concentration of risks relates to products belonging to the "modular" line and the "Welfare" segment, the latter referring to collective policies taken out with corporate customers ( mployee Benefits)

Insurance Activities - Concentration Risk - P&C

Product type	31 December 2023
Asset & ersonal rotection & Modular Line	37%
hird-party networks	8%
ayment protection line	8%
alary-backed loans	6%
ntegration Life - &C	3%
Welfare and other management	38%

Claims development

Below is information on the development of undiscounted claims, both in terms of cumulative amount paid at the date and in terms of ultimate cost values296F ²⁹⁷, gross and net of reinsurance

he claims development table shows the development of cumulative paid claims and ultimate cost per year of generation

	Cumulative paid claims and other directly attributable costs paid (A)
Claims/Times	Year T-9	Year T-8	Year T-7	Year T-6	Year T-5	Year T-4	Year T-3	Year T-2	Year T-1	Year T	Total
1 At the end
of the year of
occurrence	-	-	-	-	-	-	-	(104)	(126)	(191)
2 One year later	-	-	-	-	-	-	(115)	(186)	(216)
3 wo years
later	-	-	-	-	-	(115)	(123)	(200)
4 hree years
later	-	-	-	-	(64)	(116)	(124)
5 Four years
later	-	-	-	(61)	(64)	(118)
6 Five years
later	-	-	(53)	(61)	(64)
7 ix years
later	-	(63)	(53)	(61)
8 even years later	(75)	(62)	(52)
9 ight years
later	(74)	(62)
10 ine years
later	(74)
Total	(74)	(62)	(52)	(61)	(64)	(118)	(124)	(200)	(216)	(191)	(1,162)
Claims/Times
								Estimated ultimate cumulative claims cost (amount before reinsurance and undiscounted) (B)
1 At the end	Year T-9	Year T-8	Year T-7	Year T-6	Year T-5	Year T-4	Year T-3	Year T-2	Year T-1	Year T	Total
of the year of
occurrence	-	-	-	-	-	-	-	(220)	(278)	(384)
2 One year
later	-	-	-	-	-	-	(149)	(230)	(274)
3 wo years
later 4 hree years	-	-	-	-	-	(131)	(139)	(222)
later	-	-	-	-	(70)	(126)	(134)
5 Four years
later	-	-	-	(65)	(66)	(123)
6 Five years
later	-	-	(55)	(62)	(66)
7 ix years
later	-	(64)	(54)	(62)
8 even years later	(75)	(63)	(53)

Insurance Activities - Claims Development Before Reinsurance

²⁹⁷ Ultimate cost value means the estimate of the final settlement that the insurer expects to pay for a single claim or for an entire generation of claims. This amount includes all values to be paid to the insured and/or injured party, including settlement costs.

Poste Italiane Group											oste taliane's Financial tatements at 31 December 2023
	9 ight years later	(74)	(63)
	10 ine years later	(74)
	Total	(74)	(63)	(53)	(62)	(66)	(123)	(134)	(222)	(274)	(384)	(1,456)
	C. Gross undiscounte d liability for incurred claims - T to T-9 (B - A)	(0)	(1)	(1)	(1)	(2)	(5)	(10)	(22)	(58)	(194)	(293)
	D. Gross undiscounte d liability for incurred claims - years prior to T-9											(0)
	E. Discount effect											11
	F. Effect of adjustment for non financial risks											(14)
	G. Gross liability for incurred claims of insurance contracts issued											(296)

Cumulative paid claims, at 31 December 2023, amounted to €1,162 million, of which more than 50% related to claims occurred between 2021 and 2023

Cumulative paid claims, including the ultimate cost estimate, amounted to 1,456 at 31 December 2023, of which more than 60% related to claims occurred between 2021 and 2023

At the reporting date, approximately 80% of cumulative claims including the ultimate cost estimate had been settled n fact, the ending balance of the undiscounted liability for remaining coverage at 31 December 2023 amounts to UR 293297F 298 million his amount remains set aside to support commitments to policyholders for future years and relates, for approximately 65%, to claims occurred in the year 2023

he discount effect on these expected future cash flows amounts to €11 million, while the adjustment for non-financial risk amounts to approximately €14 million

	Cumulative paid claims and other directly attributable costs paid net of reinsurance (A)
Claims/Times	Year T-9	Year T-8	Year T-7	Year T-6	Year T-5	Year T-4	Year T-3	Year T-2	Year T-1	Year T	Total
1 At the end
of the year of
occurrence	-	-	-	-	-	-	-	(86)	(117)	(158)
2 One year
later	-	-	-	-	-	-	(83)	(156)	(198)
3 wo years
later	-	-	-	-	-	(81)	(87)	(168)
4 hree years
later	-	-	-	-	(32)	(82)	(88)
5 Four years
later	-	-	-	(37)	(32)	(83)
6 Five years
later	-	-	(32)	(37)	(32)
7 ix years
later	-	(44)	(32)	(37)

Insurance Activities - Claims Development Net of Reinsurance

2023 Annual Report

²⁹⁸ This amount relates to the liability for incurred claims of Poste Assicura SpA and the reserve for incurred claims of Net Insurance SpA gross of the amounts attributable to flows related to receivables for amounts to be recovered on such incurred claims.

8 even years later 9 ight years	(60)	(44)	(32)
later	(59)	(44)
10 ine years later	(59)
Total	(59)	(44)	(32)	(37)	(32)	(83)	(88)	(168)	(198)	(158)	(901)
Claims/Times	Year T-9	Year T-8	Year T-7	Year T-6	Estimated ultimate cumulative claims cost (amount net of reinsurance and undiscounted) (B) Year T-5	Year T-4	Year T-3	Year T-2	Year T-1	Year T	Total
1 At the end
of the year of
occurrence	-	-	-	-	-	-	-	(188)	(256)	(312)
2 One year later	-	-	-	-	-	-	(110)	(196)	(255)
3 wo years
later	-	-	-	-	-	(93)	(101)	(190)
4 hree years later	-	-	-	-	(37)	(89)	(97)
5 Four years
later	-	-	-	(40)	(34)	(87)
6 Five years later 7 ix years	-	-	(34)	(38)	(33)
later	-	(45)	(33)	(38)
8 even years later	(61)	(44)	(33)
9 ight years later	(60)	(44)
10 ine years
later	(60)
Total	(60)	(44)	(33)	(38)	(33)	(87)	(97)	(190)	(255)	(312)	(1,148)
C. Net undiscounted liability for incurred claims - year of occurrence T to T-9 (Total B	(0)	(0)	(0)	(1)	(1)	(4)	(9)	(21)	(57)	(154)	(247)
- Total A) D. Net undiscounted liability for incurred claims - years prior to T-9											(0)
E. Discount effect											9
F. Effect of adjustment for non financial risks											(12)
G. Net liability for incurred claims of insurance contracts issued											(250)

2023 Annual Report

Mitigation related to reinsurance improves the result by about 15%

POSTAL AND BUSINESS ACTIVITIES

Fair value interest rate risk

Postal and Business Activities - Fair value interest rate risk

		31 December 2022	31 December 2023
Description (€m)		Risk exposure		Risk exposure	Equity reserves before taxation
	Nominal	Fair value	Nominal	Fair value	+100bps	-100bps
Financial assets Financial assets at FV OC Derivative financial instruments	110 50	91 0	110 -	99 -	(4) -	4 -
Total	160	91	110	99	(4)	4

Within the framework of postal and commercial activities, the risk exposure in question relates to Financial assets at fair value through other comprehensive income represented by fixed income government bonds held by the arent Company

rice risk

Postal and Business Activities - Price risk 31 December 2022 31 December 2023 Description (€m) Risk exposure Risk exposure Equity reserves before taxation + Vol - Vol Financial assets Financial assets at FV OC 343 345 120 (120) Financial assets at FV L 1 0 - - Derivative financial instruments - - - - Total 344 345 120 (120)

Financial assets at fair value through other comprehensive income refer to exi shares held by oste taliane pA for €345 million; the arent Company holds additional shares in Moneyfarm, sender Technologies GmbH, Milkman and Scalapay Limited, which are also classified as Financial assets at fair value through other comprehensive income, not subject to sensitivity analysis in the above table

Foreign exchange risk

Postal and Business Activities - Currency Risk
	31 December 2022		31 December 2023
Description (€m)	Position in GBP	Position in Euro	Position in GBP	Position in Euro	Equity reserves before taxation
					+ Vol 260 days	- Vol 260 days
Financial assets Financial assets at FV OC	50	57	48	55	3	(3)
Total	50	57	48	55	3	(3)

At 31 December 2023, the risk in question related exclusively to an equity investment held by the arent Company in Moneyfarm

n addition, below is indicated the risk related to the net receivable/(payable) position in D , a synthetic currency resulting from the weighted average of the exchange rates of four major currencies (the euro, U dollar, British pound and Japanese yen) held by oste taliane pA and used worldwide to settle debts and credits among postal operators

	31 December 2022		31 December 2023
Description	Position in	Position in	Position in	Position in	Profit/(Loss) before tax
(€m)	SDRs	Euro	SDRs	Euro	+ Vol 260 days	- Vol 260 days
Current assets in DRs	166	208	77	94	4	(4)
Current liabilities in DRs	(201)	(251)	(67)	(82)	(3)	3
Total	(34)	(43)	10	12	0	(0)

Lastly, it should be noted that the oste taliane Group is subject to translation currency risk, which is the exchange rate risk associated with the conversion into euro of items relating to investments in companies whose functional currency is not the euro At 31 December 2023, however, a significant change in exchange rates would not have a material impact on the Group's consolidated financial statements

pread risk

he following is the result of the sensitivity analysis298F ²⁹⁹ to spread risk carried out at 31 December 2023 limited to the Financial assets at FV OC involving fixed income government bonds:

Postal and Business Activities - Fair Value Spread Risk
	31 December 2022		31 December 2023
Description (€m)	Risk exposure		Risk exposure		Equity reserves before taxation
	Nominal	Fair value	Nominal	Fair value	+100bps	-100bps
Financial assets
Financial assets at FV OC	110	91	110	99	(4)	4
Total	110	91	110	99	(4)	4

²⁹⁹ For sensitivity purposes, the swap rate curve and the BTP curve were used (10-year swap rate of 250 bps and the spread of the BTP compared to the 10-year swap rate of 121 bps).

Credit risk

nformation on credit risk exposure is presented in the following section only for financial assets other than trade and other receivables and assets subject to impairment provisions, for which information is provided in Note A8 - Trade receivables and Note A9 - Other receivables and assets

xposure to credit risk

he table below provides an analysis of the exposure at 31 December 2023 of the Financial Assets pertaining to the ostal and Business segment for which the General impairment model is used he analysis shows the exposure by financial asset class by stages he amounts refer to the gross carrying amount (amortised cost before CL), unless otherwise indicated, and do not take into account guarantees or other credit enhancements

Postal and Business Activities - Credit Risk - Rating

Description	from A+ to BBB		Not	Hedge
(€m)	Stage 1 Stage 2		rated	accounting effects	Total
2023
Financial assets at amortised cost
Gross carrying amount	20	-			20
rovision to cover expected losses	(20)	-			(20)
Total amortised cost at 31 December 2023	(0)	-	4	-	4
Financial assets at FVTOCI Gross carrying amount	101	-	-	-	101
Carrying amount - Fair value at 31 December 2023	99	-	-	-	99
2022 Financial assets at amortised cost
Gross carrying amount	19	-			20
rovision to cover expected losses	(20)	-			(20)
Total amortised cost at 31 December 2022	(1)	-	3	-	3
Financial assets at FVTOCI
Gross carrying amount	99	-	-	-	99
Carrying amount - Fair value at 31 December 2022	91	-	-	-	91

he Financial assets that are relevant to the risk in question refer to financial receivables held by the arent Company oste taliane pA (RFC) and measured at amortised cost for a gross carrying amount of €20 million, fully written down; as well as fixed income instruments measured at fair value through other comprehensive income for a carrying amount of €99 million

he following table shows an analysis of the counterparty concentration of credit risk by financial asset class

Postal and Business Activities - Credit risk - Credit risk concentration

		31.12.2023	31.12.2022
Description (€m)	Provision to Gross carrying cover expected amount losses		Gross carrying amount	Provision to cover expected losses
Financial assets at amortised cost	24	(20)	23	(20)
Corporate	24	(20)	23	(20)
Financial assets at FV OC	101	-	99	-
overeign	101	-	99	-
Total	125	(20)	123	(20)

CL measurement

At 31 December 2023, the estimated expected losses on financial instruments related almost exclusively to financial receivables at amortised cost amounting to approximately €20 million he provision remained unchanged from 31 December 2022

Liquidity risk

he following tables present a comparison of the financial liabilities and assets of the ostal and Business segment at 31 December 2022

Postal and Business Activities - Liquidity risk - Liabilities
	31.12.2023				31.12.2022
Description (€m)	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 Over 5 and 5 years years	Total
Financial liabilities rade payables	825 1,749	2,219 -	304 -	3,348 1,749	369 1,811	1,879 -	1,081 -	3,329 1,811
Other liabilities	1,264	224	1	1,489	1,284	209	5	1,498
Total Liabilities	3,838	2,443	305	6,586	3,464	2,088	1,086	6,638

n the table above, the expected cash outflows are broken down by maturity Repayments of principal at nominal value are increased by interest payments calculated, where applicable, on the basis of the yield curve applicable at 31 December 2022

Postal and Business Activities - Liquidity risk - Assets

	31.12.2023				31.12.2022
Description (€m)	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial assets	2	122	2	125	35	2	111	149
rade receivables	1,658	2	-	1,660	1,708	2	-	1,710
Other receivables and assets	378	310	153	842	293	284	182	759
ax credits Law no 77/2020 (*)	59	273	137	469	63	247	162	472
Cash and cash equivalents (**)	650	-	-	650	575	-	-	575
Total Assets	2,747	707	292	3,746	2,674	535	455	3,664

(*) he amount shown in the table also includes receivables for which seizure orders were received from judicial authorities

(**) shown gross of liquidity elimination

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n the case of assets, cash inflows are broken down by maturity, shown at nominal value and increased, where applicable, by interest receivable nvestments include financial instruments held by the arent Company, shown on the basis of expected cash flows, consisting of principal and interest paid at the various payment dates

he committed and uncommitted credit lines available to the Group companies belonging to the operating segment in question, and the related uses are summarised in the table below

Description	Balance at	Balance at
(€m)	31.12.2023	31.12.2022
Committed credit lines	2,450	2,450
hort-term loans	2,450	2,450
Uncommitted credit lines	2,162	2,120
hort-term loans	960	1,005
Current account overdrafts	185	145
Unsecured loans	1,017	969
Total	4,612	4,570
Uncommitted uses	554	622
hort-term loans	0	1
Unsecured loans	554	621
Total	554	622

o collateral has been provided to secure the credit lines obtained

At 31 December 2023, the arent Company had an M - uro Medium erm ote program of €2 5 billion in place, thanks to which the Group can raise an additional €1 5 billion on the capital market As part of this programme, the loan with a nominal value of €50 million, privately placed and issued at par on 25 October 2013, was repaid in October 2023

he existing credit lines and the loans are adequate to meet financing requirements expected to date

Cash flow interest rate risk

Within Financial assets belonging to the postal and business segment, the interest rate risk on cash flows relates to variable-rate bank deposits held by the arent Company for approximately €75 million (€110 million at 31 December 2022), while under Financial liabilities it relates to the variable-rate C B loan taken out by the arent Company, for which the first tranche of €125 million was disbursed on 28 December 2023 he sensitivity analyses performed at 31 December 2023 do not show any significant effects on the profit/(loss) before tax

PAYMENT SERVICES AND CARD PAYMENTS ACTIVITIES

Foreign exchange risk

Within the ayment ervices and Card ayments segment, the financial assets exposed to the risk under review refer to the investment held by the company ostepay in Volanté (approximately €7 million at 31 December 2023 and 31 December 2022) and the convertible loan issued by the company Volanté subscribed in 2023 by ostepay and recognised in financial assets at fair value through profit or loss for approximately €1 million he sensitivity analyses performed did not reveal any significant effects on the company's profit/(loss) before tax or equity reserves

Credit risk

ee Note A8 - Trade receivables and Note A9 - Other receivables and assets for information on credit risk exposure on trade receivables and on other receivables and assets subject to impairment provisions

he financial assets exposed to risk at 31 December 2023 refer to financial receivables from corporate counterparties, measured at amortised cost, for a gross carrying amount of approximately €32 million in the A+/BBB- rating category and stage 1, and for a gross carrying amount of approximately €27 million in the BB+/C rating category and stage 1 At 31 December 2023, the estimated expected losses on these financial instruments were not significant

Liquidity risk

he following tables show the comparison between financial liabilities and assets falling within the ayments and Card payments segment and outstanding at 31 December 2023

Liabilities
Description (€m)		31.12.2023		31.12.2022
	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Betwee n 1 and 5 years	Over 5 years	Total
Financial liabilities	10,275	8	-	10,282	9,342	8	-	9,350
rade payables	390	-	-	390	307	-	-	307
Other liabilities	84	2	0	85	61	1	-	62
Total Liabilities	10,748	10	0	10,757	9,710	9	-	9,720

Payment Services and Card Payments Activities - Liquidity Risk -

n the table above, the expected cash outflows are broken down by maturity Repayments of principal at nominal value are increased by interest payments calculated, where applicable, on the basis of the yield curve applicable at 31 December 2023

Payment Services and Card Payments Activities - Liquidity Risk - Assets

Description (€m)	31.12.2023				31.12.2022
	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial assets	299	0	-	299	198	-	-	198
rade receivables
	155	-	-	155	94	-	-	94
Other receivables and assets	56	2	-	58	51	1	-	51
Cash and cash equivalents (*)	65	-	-	65	172	-	-	172
Total Assets	575	2	-	577	514	1	-	515

(*) hown gross of liquidity elimination

n the case of assets, cash inflows are broken down by maturity, shown at nominal value and increased, where applicable, by interest receivable

At 31 December 2023, the companies in this segment also had credit lines of about €35 million for unsecured loans of around €15 million drawn

Additional liquidity needs can be met by resorting to credit lines stipulated by the arent Company, for details of which please refer to the section on liquidity risk of postal and business activities

o collateral has been provided to secure the credit lines obtained

he existing credit lines and the loans are adequate to meet financing requirements expected to date

Cash flow interest rate risk

As part of the ayment ervices and Card ayments segment, the Financial assets exposed to the risk in question refer entirely to variable-rate bank deposits held by L ay for a nominal value, at 31 December 2023, of approximately €42 million he sensitivity analyses performed show that as a result of a parallel shift of +/- 100 bps in the interest rate, the impact on the profit/(loss) before tax would in both cases be positive by about €3 million and about €1 million, respectively

QUANTITATIVE INFORMATION - POSTE ITALIANE SPA

he following is quantitative information on oste taliane pA's exposure to financial risks

Fair value interest rate risk

Poste Italiane SpA - Fair value interest rate risk

	31.12.2022		31.12.2023
Description (€m)	Risk exposure		Risk exposure		Impact of equity reserves before taxation
	Nominal	Fair Value		Fair Value	+100bps	-100bps
Financial assets attributable to BancoPosta RFC
Financial assets at FVTOCI	37,489	33,161	34,859	33,069	(1,044)	1,067
Derivative financial instruments	1,564	350	-	-	-	-
Financial assets - Capital outside the ring-fence
Financial assets at FVTOCI	110	91	110	99	(4)	4
Derivative financial instruments	50	-	-	-	-	-
Financial liabilities attributable to BancoPosta RFC
Derivative financial instruments	2,968	(96)	-	-	-	-
Total	42,181	33,506	34,969	33,168	(1,048)	1,071

Financial assets at fair value through other comprehensive income that relate to the risk under review are composed of fixed income government bonds held by Banco osta RFC which consist of: fixed-rate securities amounting to €16,192 million, variable-rate securities converted into fixed-rate securities via cash flow hedges interest rate swaps, totalling €3,729 million, variable-rate securities for €1,769 million (of which inflation-linked securities amounting to €1,116 million), and

fixed- or variable-rate bonds converted to variable-rate positions via fair value hedges amounting to €11,478 million (including €4,680 million in forward starts)

At 31 December 2023, with reference to the interest rate risk exposure determined by the average financial duration29F ³⁰⁰ of the portfolios and relating mainly to Banco osta RFC, overall investments went from 5 01 to 5 38

Price risk

Poste Italiane SpA - Price risk

	31.12.2022	31.12.2023
Description (€m)	Risk exposure	Risk exposure	Impact of Profit/(Loss) before tax			Impact of Equity reserves before taxation
		+ Vol		- Vol	+ Vol	- Vol
Financial assets attributable to BancoPosta RFC Financial assets at FVTPL	40	26	4	(4)	-	-
Financial assets outside ring-fence Financial assets at FVTOCI	343	345	-	-	120	(120)
Financial liabilities attributable to BancoPosta RFC Derivative financial instruments	(4)	(3)	(3)	3	-	-
Total	379	368	1	(1)	120	(120)

he financial instruments that are relevant to the risk under comment concern:

• Financial assets at fair value through other comprehensive income consisting of the shares held by the RFC in exi pA;
• Financial assets at fair value through profit or loss and relating to preference shares held by Banco osta RFC in Visa ncorporated For the purpose of the sensitivity analysis, the equities are matched with the corresponding amount of the Class A shares, considering the volatility of the shares listed on the Y ;
• Derivative financial instruments related to the forward sale agreement for 95,000 Visa ncorporated ordinary shares he shares in Moneyfarm Holding Ltd, sennder echnologies GmbH, Milkman and calapay Limited, classified as Financial Assets at fair value through other comprehensive income, and held by RFC are not subject to sensitivity in the above table

Foreign exchange risk

Poste Italiane SpA - Currency risk
	31.12.2022			31.12.2023
Description (€m)	Position in USD	Position in GBP		Position in Euro Position in USD	Position in GBP Position in Euro		Impact of Profit/(Loss) before tax		Impact of Equity reserves before taxation
							+ Vol 260 days - Vol 260 days		+ Vol 260 days - Vol 260 days
Financial assets attributable to BancoPosta RFC Financial assets at FVTPL	42	-	40	29	-	26	2	(2)	-	-
Financial assets outside ring-fence Financial assets at FVTOCI	-	50	57	-	48	55	-	-	3	(3)
Financial liabilities attributable to BancoPosta RFC Derivative financial instruments	(4)	-	(4)	(3)	-	(3)	(2)	2	-	-
Total	38	50	93	26	48	78	-	-	3	(3)

At 31 December 2023, the risk in question concerns:

• the equity investment in Visa ncorporated by Banco osta RFC and the related derivative financial instrument entered into on the ordinary shares;
• the equity investment in the company MFM Holding Ltd by the RFC

Below is also the risk concerning the net trading position in D 30F ³⁰¹ held by oste taliane pA and used worldwide for the settlement of trade positions between ostal Operators:

³⁰⁰ Duration is the indicator used to estimate the percentage change in price in response to a shift in market returns.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

		31.12.2022	31.12.2023
Description (€m)	Position in SDR	Position in EUR		Position in SDR Position in EUR	Impact of Profit/(Loss) before tax
					+ Vol 260 days	- Vol 260 days
Current assets in SDRs	167	208	77	94	4	(4)
Current liabilities in SDRs	(201)	(251)	(67)	(82)	(3)	3
Total	(34)	(43)	10	12	1	(1)

Spread risk

Poste Italiane SpA - Fair value spread risk

Poste Italiane SpA - Currency risk SDR		31.12.2022		31.12.2023
Description (€m)	Position in SDR	Position in EUR		Position in SDR Position in EUR	Impact of Profit/(Loss) before tax
					+ Vol 260 days	- Vol 260 days
Current assets in SDRs	167	208	77	94	4	(4)
Current liabilities in SDRs	(201)	(251)	(67)	(82)	(3)	3
Total	(34)	(43)	10	12	1	(1)
Spread risk
Poste Italiane SpA - Fair value spread risk		31.12.2022			31.12.2023
Description		Risk exposure		Risk exposure		Impact of equity reserves before
(€m)	Nominal	Fair value	Nominal	Fair value	+100bps	taxation -100bps
Financial assets attributable to BancoPosta Financial assets at FVTOCI		37,489	33,161	34,859 33,069	(2,993)	3,508
Derivative financial instruments		1,564	350	- -	-	-
Financial assets outside ring-fence Financial assets at FVTOCI		110	91	110 99	(4)	4
Financial liabilities attributable to BancoPosta Derivative financial instruments		2,968	(96)	- -	-	-
Total		42,131 33,506	34,969	33,168	(2,997)	3,512
securities and the spread risk component (not hedged) was reflected in equity for €1,944 million For further details on the risk in question, see the section in this paragraph entitled "Quantitative nformation - oste taliane Group - Financial Activities"
Credit risk
xposure to credit risk
he credit risk exposure at 31 December 2023 of Financial assets for which, for the purposes of application of the impairment provisions, the General impairment model is used, is shown below financial asset class by stages otherwise indicated, and do not take into account guarantees or other credit enhancements				he amounts refer to the gross carrying amount (amortised cost before	he analysis shows the exposure by	CL), unless
301 Synthetic currency determined by the weighted average of the exchange rates of four major currencies (Euro, US Dollar, British Pound Sterling, Japanese Yen).

Credit risk

xposure to credit risk

³⁰¹ Synthetic currency determined by the weighted average of the exchange rates of four major currencies (Euro,

Credit risk - Ratings for BancoPosta RFC

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Description	from AAA to AA-		from A+ to BBB-			from BB+ to C			Hedge
(€m)	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Not Rated	accounting effects	Total
2023 Financial assets at amortised cost
Gross carrying amount	-	-	-	44,289	-	-	-	-			44,289
Provision to cover expected losses	-	-	-	(23)	-	-	-	-	-	-	(23)
Total amortised cost at 31 December 2023	-	-	-	44,266	-	-	-	-	536	(1,944)	42,858
Financial assets at FVTOCI
Gross carrying amount	-	-	-	35,512	-	-	-	-	-		35,512
Provision to cover expected losses - OCI	-	-	-	(18)	-	-	-	-			(18)
Carrying amount - Fair value at 31 December 2023	-	-	-	33,069		-	-	-	-	-	33,069
2022 Financial assets at amortised cost
Gross carrying amount	195	-	-	45,954	-	-	-	-			46,149
Provision to cover expected losses	-	-	-	(19)	-	-	-	-			(19)
Total amortised cost at 31 December 2022	195	-	-	45,935	-	-	-	-	566	(2,714)	43,982
Financial assets at FVTOCI
Gross carrying amount	-	-	-	38,949	-	-	-	-	-		38,949
Provision to cover expected losses - OCI	-	-	-	(16)	-	-	-	-			(16)
Carrying amount - Fair value at 31 December 2022	-	-	-	33,161		-	-	-	-	-	33,161

Credit risk - Ratings for capital outside the ring-fence

Description	from AAA to AA-		from A+ to BBB-				from BB+ to C		Hedge
(€m)	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Stage 3	Stage 1	Stage 2	Not Rated	accounting effects	Total
2023
Financial assets at amortised cost
Gross carrying amount	-	-	-	434	-	-	-	-			434
Provision to cover expected losses	-	-	-	(21)	-	-	-	-	-	-	(21)
Total amortised cost at 31 December 2023	-	-	-	413	-	-	-	-	4	-	417
Financial assets at FVTOCI
Loans	-	-	-	-	-	-	-	-			-
Receivables	-	-	-	-	-	-	-	-			-
Fixed income instruments	-	-	-	101	-	-	-	-			101
Gross carrying amount	-	-	-	101	-	-	-	-			101
Provision to cover expected losses - OCI	-	-	-	-	-	-	-	-	-	-	-
Carrying amount - Fair value at 31 December 2023	-	-	-	99	-	-	-	-	-	-	99
2022 Financial assets at amortised cost
Gross carrying amount	-	-	-	386	-	-	-	-			386
Provision to cover expected losses	-	-	-	(21)	-	-	-	-	-	-	(21)
Total amortised cost at 31 December 2022	-	-	-	365	-	-	-	-	3	-	368
Financial assets at FVTOCI
Gross carrying amount	-	-	-	99	-	-	-	-			99
Provision to cover expected losses - OCI	-	-	-	-	-	-	-	-	-	-	-
Carrying amount - Fair value at 31 December 2022	-	-	-	91	-	-	-	-	-	-	91

Financial assets at amortised cost that are relevant to the risk in question regard: fixed income instruments held by Banco osta RFC with a gross carrying amount of €32,360 million, decreased by a total of €1,962 million to take account of the effects of fair value hedges and the related impairment provision; loans and receivables with a gross carrying amount of €12,363 million, including €8,937 million relating to Banco osta RFC and deriving from Deposits with the M F and €409 million referring to the RFC and relating to loans and running current accounts receivable from subsidiaries

Financial assets at fair value through other comprehensive income that are relevant to the risk in question concern fixed income instruments held mainly by Banco osta RFC

	EMARKET SDIR
	CERTIFIED
3

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he following table also shows the counterparty concentration of credit risk by financial asset class

Credit risk - Concentration of credit risk

	31.12.2023		31.12.2022
Description (€m)	Gross carrying amount	Provision to cover expected losses	Gross carrying amount	Provision to cover expected losses
Financial assets attributable to BncoPosta RFC
Financial assets at amortised cost	44,289	(23)	46,149	(18)
Sovereign Corporate Banking	38,406 4,937 946	(21) (2) -	39,327 5,354 1,468	(17) (1) -
Financial assets at FVTOCI	35,512	(18)	38,949	(16)
Sovereign Corporate Banking	35,512 - -	(18) - -	38,949 - -	(16) - -
Financial assets outside ring-fence
Financial assets at amortised cost	438	(21)	389	(21)
Sovereign Corporate Banking	- 438 -	- (21) -	- 389 -	- (21) -
Financial assets at FVTOCI	101	-	99	-
Sovereign Corporate Banking	101 - -	- - -	99 - -	- - -
Total	80,340	(62)	85,586	(55)

Collateral held and other credit enhancements

At 31 December 2023, the Company does not hold financial instruments secured by guarantees or other risk mitigation instruments for which no loss provisions have been made (except for the temporary use of liquidity in repurchase agreements)

For further details on the risk in question and, in particular, on the main types of credit risk mitigation instruments, please refer to the section in this paragraph entitled "Quantitative nformation - oste taliane Group - Financial Activities"

CL measurement

he following tables show, for Financial assets, the reconciliation between the opening and closing balances of the CL provisions required by FR 9

BancoPosta RFC - Credit risk - Details of the provision to cover expected losses on financial instruments of BancoPosta RFC

Description	Financial assets at amortised cost		Financial assets at FVTOCI
(€m)	Stage 1	Total	Stage 1	Total
Balance at 1 January 2023	19	19	16	16
Impairment of financial instruments in portfolio at the beginning of the period Reversal of financial instruments in portfolio at the beginning of the period	3 -	3 -	3 (1)	3 (1)
Impairment of financial instruments acquired/disbursed in the period Reversal for write-off	1 -	1 -	3 -	3 -
Reversal due to sale / collection	-	-	(2)	(2)
Balance at 31 December 2023	23	23	19	19

Credit risk - Details of the provision to cover expected losses on financial instruments of Capital outside the ring-fence

Description (€m)		Financial assets at amortised cost Financial assets at FVTOCI
	Stage 1	Total	Stage 1	Total
Balance at 1 January 2023	21	21	-	-
Impairment of financial instruments in portfolio at the beginning of the period	-	-	-	-
Reversal of financial instruments in portfolio at the beginning of the period Impairment of financial instruments acquired/disbursed in the period	- -	- -	- -	- -
Reversal for write-off	-	-	-	-
Reversal due to sale / collection	-	-	-	-
Balance at 31 December 2023	21	21	-	-

At 31 December 2023, the estimate of expected losses on financial instruments at amortised cost includes €18 million for the provision related to fixed income instruments held by Banco osta RFC (increased by €5 million compared to 31 December 2022) and €20 million for the provision related to the residual receivable from nvitalia pA for the sale of Banca del Mezzogiorno-MedioCreditoCentrale pA (unchanged compared to 31 December 2022)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

At 31 December 2023, estimated expected losses on financial instruments measured at fair value through other comprehensive income amount to €19 million and concern the provision relating to government bonds held mainly by Banco osta RFC

Liquidity risk

A comparison between liabilities and assets at 31 December 2023 is shown below:

Liquidity risk - Liabilities
Description (€m)	31.12.2023				31.12.2022
	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial liabilities attributable to BancoPosta RFC	41,461	21,702	30,913	94,076	49,200	23,062	30,815	103,077
Financial Liabilities outside ring-fence	2,117	2,006	249	4,372	1,598	1,674	1,024	4,296
Trade payables	1,967	-	-	1,967	1,970	-	-	1,970
Other liabilities	1,436	1,925	1	3,362	1,456	1,903	5	3,364
Total Liabilities	46,981	25,633	31,163	103,777	54,224	26,639	31,844	112,707

he above table shows expected cash outflows, broken down by maturity and payables deriving from postal current accounts classified under Financial liabilities of Banco osta RFC, represented on the basis of the statistical/econometric model that forecasts the interest rates and maturities typical of postal current accounts Repayments of principal at nominal value are increased by interest payments calculated, where applicable, on the basis of the yield curve applicable at 31 December 2023

Liquidity risk - Assets

	31.12.2023				31.12.2022
Description (€m)	Within 12 months	Between 1 and 5 years	Over 5 years	Total	Within 12 months	Between 1 and 5 years	Over 5 years	Total
Financial assets attributable to BancoPosta RFC	20,050	19,144	76,135	115,329	24,401	19,303	80,653	124,357
Financial assets outside ring-fence	80	209	552	841	45	90	643	778
Trade receivables	2,774	1	-	2,775	2,656	1	-	2,657
Other receivables and assets	982	1,784	17	2,783	832	1,775	21	2,628
Tax credits Law 77/2020 (*)	1,760	5,178	2,378	9,316	1,569	5,514	3,134	10,217
Cash and deposits attributable to BancoPosta	4,671	-	-	4,671	5,848	-	-	5,848
Cash and cash equivalents	1,222	-	-	1,222	2,258	-	-	2,258
Total Assets	31,539	26,316	79,082	136,937	37,609	26,683	84,451	148,743

(*)The amount shown in the table also includes claims for which seizure orders have been received amounting to approximately €530 million

n the case of assets, cash inflows are broken down by maturity, shown at nominal value and increased, where applicable, by interest receivable nvestments include financial instruments held mainly by Banco osta RFC, shown on the basis of expected cash flows, consisting of principal and interest paid at the various payment dates

oste taliane pA's liquidity risk is mainly attributable to funding from Banco osta RFC in postal current accounts and prepaid cards301F ³⁰² (€73,011 million) and the related investment in euro-government and/or talian government-guaranteed securities (€100,242 million), margining inherent in derivative transactions, and tax credits acquired with reference to the Decreto Rilancio no 34/2020 (later converted into Law no 77 of 17 July 2020) he potential risk derives from a mismatch between the maturities of investments in securities and those of liabilities, represented by current accounts where the funds are available on demand, thus compromising the ability to meet its obligations to current account holders For the monitoring of this mismatch, see the section in this paragraph entitled "Quantitative nformation - oste taliane Group - Financial Activities"

n addition, in order to meet any liquidity needs, information on the committed and uncommitted credit lines available to the Company, as well as their utilisation, is presented below:

³⁰² Since 1 October 2018, prepaid cards are the responsibility of Postepay SpA. The liquidity raised through these cards is transferred to BancoPosta, which invests the funds raised in euro area government bonds or bonds guaranteed by the Italian State. As such, for the purposes of specific risk analyses, the rationales related to each model underlying the different types of deposit inflow continue to apply.

Description (€m)	Balance at 31.12.2023	Balance at 31.12.2022
Committed credit lines	2,450	2,450
Short-term loans	2,450	2,450
Uncommitted credit lines	2,080	2,035
Short-term loans	960	1,005
Current account overdrafts	184	144
Unsecured loans	936	886
Total	4,530	4,485
Committed uses	-	-
Short-term loans	-	-
Uncommitted uses	525	588
Short-term loans	-	-
Unsecured loans (*)	525	588
Total	525	588

(*) At 31 December 2023, unsecured loans were used for €320 million on behalf of oste taliane pA and for €205 million on behalf of Group companies

o collateral has been provided to secure the credit lines available

At 31 December 2023, no committed and uncommitted credit lines were used for short-term financing

he uncommitted credit lines are also available for overnight transactions entered into by Banco osta RFC n addition, from 5 December 2023, it may access a 3-year committed facility granted by Cassa Depositi e restiti for repurchase agreements up to a maximum of €3 billion, undrawn at 31 December 2023 Finally, the Bank of taly has granted Banco osta RFC access to intraday credit in order to fund intraday interbank transactions Collateral for this credit facility is provided by securities with a nominal value of €2,758 million, undrawn at 31 December 2023 For further details, see the section in this paragraph entitled "Quantitative nformation - oste taliane Group - Financial Activities"

Lastly, at 31 December 2023, oste taliane pA had an M - uro Medium erm ote programme of €2 5 billion in place, thanks to which can raise an additional €1 5 billion on the capital market As part of this programme, the loan with a nominal value of €50 million, privately placed and issued at par on 25 October 2013, was repaid in October 2023

Cash flow interest rate risk

Poste Italiane SpA - Cash flow interest rate risk

	31.12.2022	31.12.2023
Description (€m)	Risk exposure	Risk exposure	Impact of Profit/(Loss) before tax
	Nominal	Nominal	+100 bps	-100 bps
Financial assets attributable to BancoPosta RFC
Financial assets at amortised cost	22,479	16,616	166	(166)
Financial assets at FVTOCI	10,540	8,895	89	(89)
Financial assets outside ring-fence Financial assets at amortised cost	362	403	4	(4)
Financial assets at FVTOCI	-	-	-	-
Cash and deposits attributable to BancoPosta	1,888	762	8	(8)
Cash and cash equivalents	2,104	950	9	(9)
Financial liabilities attributable to BancoPosta RFC
Loans	(3,996)	(3,996)	(40)	40
Other financial liabilities	(4,824)	(2,831)	(28)	28
Financial Liabilities outside ring-fence
Loans	-	(125)	(1)	1
Financial liabilities due to subsidiaries Other financial liabilities	(1,281) -	(1,340) -	(13) -	13 -
Total	27,272	19,334	194	(194)

n detail, the financial instruments relevant to the risk under comment mainly concern:

• Receivables classified as Financial assets at amortised cost totalling €17,019 million, of which: €1,223 million for guarantee deposits pledged as collateral for derivative liabilities and repurchase agreements held by Banco osta RFC; €8,937 million for the investment of liquidity from deposits in postal current accounts held by the ublic Administration with the M F; €403 million for loans and current accounts receivable from subsidiaries relating to the RFC;
• Fixed income government securities held by Banco osta RFC, of which €6,456 million classified as Financial assets at amortised cost and €8,895 million classified as Financial assets at fair value through other comprehensive income n particular, the following are relevant to the risk in question: variable-rate securities for a nominal total of €650 million, fixed-rate securities converted to variable-rate positions through fair value hedges, with a total nominal amount of €12,306 million (including €1,964 million in securities with fair value hedges, where the hedges will begin to have an effect in the 12 months after the end of the period under review) and an inflation-linked bond issued by the talian Republic, with a nominal value of €2,395 million, subject to a fair value hedge;
• Cash and cash equivalents including €873 million for the deposit held with the M F on the operating current account known as the "Buffer" account;
• Loans classified as financial liabilities of BancoPosta RFC that are hedged against interest rate risk through fair value hedges

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Cash flow inflation risk

Poste Italiane SpA - Cash flow inflation rate risk
Description (€m)	31.12.2022 Risk exposure		31.12.2023
			Risk exposure		Impact of Profit/(Loss) before tax		Impact of Equity reserves before taxation
	Nominal	Carrying amount	Nominal	Carrying amount	+100bps	-100bps	+100bps	-100bps
Financial assets attributable to BancoPosta RFC Financial assets at FVTOCI	730	775	1,009	1,116	-	-	-	-

Financial assets at amortised cost 292 335 292 328 - - - - Total 1,022 1,110 1,301 1,444 - - - -

At 31 December 2023, cash flow inflation risk relates to inflation-linked government securities not subject to cash flow hedges or fair value hedges and are held entirely by Banco osta RFC

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

7.1 FAIR VALUE MEASUREMENT TECHNIQUES

he oste taliane Group has adopted a fair value policy, setting out the general principles and rules to be applied in determining fair value for the purposes of preparing the financial statements, conducting risk management assessments and supporting the market transactions carried out by the Finance departments of the various Group entities he general principles for measuring financial instruments at fair value have not changed since 31 December 2022, except for appropriate additions to include models to support the fair value measurement of new types of financial instruments held by et Group companies acquired during the financial year 2023 hese general principles have been identified in compliance with the indications from the reference accounting standards and from the various Regulators (banking and insurance), ensuring uniformity in the valuation techniques adopted within the Group he methods used have been revised, where necessary, to take into account developments in operational procedures and in market practices during the year

n compliance with IFRS 13 - Fair Value Measurement, the following section provides information regarding the techniques used to measure the fair value of financial instruments within the oste taliane Group

he assets and liabilities concerned (specifically assets and liabilities measured at fair value and measured at cost or amortised cost, for which fair value is required to be disclosed in the notes) are classified with reference to a hierarchy that reflects the materiality of the sources used for their valuation

he hierarchy consists of 3 levels

Level 1: this level is comprised of fair values determined with reference to unadjusted prices quoted in active markets for identical assets or liabilities to which the entity has access on the measurement date For the oste taliane Group the following categories of financial instrument apply:

Bonds quoted on active markets:

• Bonds issued by EU government bodies or non-government bodies: the measurement is based on bid prices, according to a hierarchy of sources where the M (the wholesale electronic market for government securities) ranks first, M LA (Milan tock xchange) second, for bonds intended primarily for retail customers, and lastly, CBB (Composite Bloomberg rice);
• Financial liabilities: measurement is based on the ask prices quoted by CBB (Composite Bloomberg Bond rader)

Equity securities and ETFs (Exchange Traded Funds) quoted on active markets: the valuation is made considering the price resulting from the last contract traded on the day on the relevant stock exchange

Quoted open-end investment funds: measurement is based on the daily closing market price as provided by Bloomberg or the fund manager Level 1 bond price quotations incorporate a credit risk component xchange rates published by the uropean Central Bank are used in determining the value of financial instruments denominated in currencies other than the euro

Level 2: this level is comprised of fair values based on inputs other than Level 1 quoted market prices that are either directly or indirectly observable for the asset or liability302F ³⁰³ For the oste taliane Group the following categories of financial instrument apply:

Bonds either quoted on inactive markets or not at all:

• Straight Italian and international government and non-government bonds: valuation is based on discounted cash flow techniques involving the computation of the present value of future cash flows, inputting rates from yield curves incorporating spreads reflecting credit risk that are based on spreads determined with reference to quoted and liquid benchmark securities issued by the issuer, or by other companies with similar characteristics to the issuer Yield curves may be slightly adjusted to reflect liquidity risk relating to the absence of an active market
• Structured bonds: valuation is based on a building block approach, entailing decomposition of a structured position into its basic components: the bond and option components he bond component is measured by discounting cash flows to present value in line with the approach applicable to straight bonds, as defined above he option component - which considering the features of the bonds included in the portfolio of the oste taliane Group relates to interest rate risk - is measured in accordance with a standard closed form expression as with classical option valuation models with underlyings exposed to such risks

Unquoted equities: this category may be included here provided it is possible to use the price of quoted equities of the same issuer as a benchmark he price inferred in this manner would be adjusted through the application of the discount, quoted by primary market counterparties, which represents the implicit cost in the process to align the value of the unquoted shares to the quoted ones

Unquoted open-end investment funds: measurement is based on the latest available AV ( et Asset Value) as provided by Bloomberg or as determined by the fund manager

Derivative financial instruments:

• nterest Rate waps:

Plain vanilla interest rate swaps: valued using discounted cash flow techniques, involving the computation of the present value of future differentials between the receiver and payer legs of the swap he construction of yield curves to estimate future cash flows indexed to market parameters (money market rates and/or inflation) and computation of the present value of future differentials are carried out using techniques commonly used in capital markets

Interest rate swaps with an embedded option: valuation is based on a building block approach, entailing decomposition of a structured position into its basic components: the linear and option components he linear component is measured using the discounted cash flow techniques described for plain vanilla interest rate swaps above Using the financial derivatives held in oste taliane's portfolio as an example, the option component is derived from interest rate or inflation rate risks and is valued using a closed form expression, as with classical option valuation models with underlyings exposed to such risks

³⁰³ Given the nature of Poste Italiane Group's operations, the observable data used as input to determine the fair value of the various instruments include, for example, quoted prices provided by third parties (pricing or brokerage services), yield and inflation curves, exchange rates provided by the European Central Bank, ranges of rate volatility, inflation option premiums, interest rate swap spreads or credit default spreads which represent the creditworthiness of specific counterparties and any liquidity adjustments quoted by primary market counterparties.

• Bond forwards: valuation is based on the present value of the differential between the forward price of the underlying instrument as of the measurement date and the settlement price
• Warrants: considering the features of the securities held, measurement is based on the equity local volatility model n particular, considering that buyback agreements have been entered into with the counterparties that structured these warrants, and that such counterparties use valuation models consistent with those used by the Group, these instruments are measured on the basis of the bid price quoted by the counterparties
• Currency forwards: valuation is based on the differential between the reciprocal currency registered at the measurement date and the reciprocal currency fixed at the trade date

he financial derivatives held in oste taliane's portfolio may be pledged as collateral and the fair value, consequently, need not be adjusted for counterparty risk he yield curve used to compute present value is selected to be consistent with the manner in which cash collateral is remunerated his approach is also followed for security in the form of pledged debt securities, given the limited level of credit risk inherent in the securities held as collateral by the oste taliane Group

n the rare instances where collateral agreements do not substantially reduce counterparty risk, measurement takes place by discounting to present value the cash flows generated by the securities held as collateral, using as the input a yield curve that reflects the spread applicable to the issuer's credit risk Alternatively, use is made of fair value to calculate the CVA/DVA (Credit Valuation Adjustment / Debit Valuation Adjustment), in relation to the main technical and financial characteristics of the agreements and the counterparty's probability of default

Reverse Repos: are valued using discounted cash flow techniques involving the computation of future contractual cash flows hese instruments may also be used for collateral and in such cases fair value need not be adjusted for the counterparty's credit risk

Fixed-rate and variable-rate loans: the measurement is carried out using discounted cash flow techniques he counterparty's credit spread is considered through:

• use of the talian government yield curve or the credit default swap (CD ) of the talian Republic, in the case of talian government agencies;
• use of quoted CD yield curves or, if not available, the adoption of "synthetic" CD yield curves represented by the counterparty's rating, as constructed starting from the input data observable on the market;
• use of yield curves based on the specific issuer's quoted bond prices

Financial liabilities either quoted on inactive markets or not at all:

• Straight bonds: these are measured by discounting their future cash flows using as input a yield curve reflecting the spread applicable to the issuer's credit risk;
• Structured bonds: valuation is based on a building block approach, entailing decomposition of a structured position into its basic components: the bond and option components he bond component is measured by discounting cash flows to present value in line with the approach applicable to straight bonds, as defined above he option component attributable to interest rate risk which, considering the features of the bonds issued by companies in the oste taliane Group, is measured in accordance with a standard closed form expression as with classical option valuation models with underlyings exposed to such risks
• Borrowings: these are measured by discounting their future cash flows using as input a yield curve reflecting the spread applicable to the credit risk
• Repurchase agreements: are valued using discounted cash flow techniques involving the computation of future contractual cash flows Repos may also be used for collateral and in such cases fair value need not be adjusted for the counterparty's credit risk

Level 3: this category includes the fair value measurement of assets and liabilities using inputs which cannot be observed, in addition to Level 2 inputs For the oste taliane Group the following categories of financial instrument apply:

Fixed-rate and variable-rate loans: the measurement is carried out using discounted cash flow techniques he counterparty's credit spread is set according to best practices, by using the probability of default and transition matrices created by external information providers and loss given default parameters determined by prudential regulations for banks or in accordance with market standards

Closed-end unquoted funds: these include funds that invest mainly in unquoted instruments heir fair value is determined by considering the latest AV ( et Asset Value), available at least every six months, reported by the fund manager his AV is adjusted according to the capital calls and reimbursements announced by the managers which occurred between the latest AV date and the valuation date

Investment property (excluding former service accommodation) and inventories of properties held for sale: he fair value of both investment property and inventories has been determined mainly by discounting to present value the cash flows expected to be generated by the rental agreements and/or proceeds from sales, net of related costs he process uses a discount rate that considers analytically the risks typical of the property

Investment property (former service accommodation): he value of this investment property is determined on the basis of the applicable law (Law 560 of 24 December 1993), which sets the selling price in case of sale to the tenant or the minimum selling price if the property is sold through a public auction

Unquoted equity instruments: this category includes shares for which no price is observable directly or indirectly in the market Measurement of these instruments is based on the price of quoted equities of the same issuer as a benchmark he price inferred in this manner would be adjusted through the application of the discount implicit in the process to align the value of the unquoted shares to the quoted ones n the specific case of equity instruments relating to unlisted companies at the "start-up" phase, by contrast the fair value is determined by considering the implicit valuation at the time of acquisition, adjusted by value adjustments to take account of any changes in price resulting from significant transactions30F ³⁰⁴ observable on the market in the 12 months prior to the reporting date Alternatively, and in the absence of significant transactions, the fair value of the share is determined using alternative methods (verification of financial data that can be inferred from the company's Business lans if available and analysis of the company's performance, multiple market use, etc )

Tax credits Law no. 77/2020: this category includes credits acquired with reference to the relaunch decree no 34/2020 (later converted into Law no 77 of 17 July 2020) for which no directly or indirectly observable market prices are available For this type of instrument, the method of determining fair value involves the application of the discounted cash flow valuation technique, which consists of discounting cash flows to maturity using the yield curve constructed by adding to the risk-free rate curve the extra yield calculated starting from the price at the date of purchase of the receivables he spread remains fixed for the life of the instrument

Forwards on unquoted equities: for these instruments, the valuation of the counterparty is recalculated by discounting the difference between the forward price of the equity security underlying the derivative updated to the valuation date and the settlement price

Equity held in co-operative banks: this category includes shares that have been admitted to the Hi-M F market (Vorvel) in light of Consob Communication no 92492 of 1/10/2016 "Recommendation on the distribution of financial instruments through a multilateral trading facility" as well as following the changes introduced by Directive 2014/65/ U of 15 May 2014

³⁰⁴ A significant transaction in this context is defined as a minimum investment of €10 million or at least 5% of the share capital of the investee entity over the last twelve months from the reporting date.

(MiF D ) and U Regulation no 600/2014 (MiF R) For these equity instruments, the alternative model of "Hi-M F market transactions" was adopted, which:

• uses the price of the last available transaction on the Hi-M F market, provided there are at least two transactions per month over a 3-month horizon;
• applies a liquidity discount on the price equal to a maximum of between zero and the ratio between the value of the position held by the Group and the accumulated value of all transactions in the last 6 months, minus one

Alternative and Level 3 Funds: this category includes quoted and unquoted open-ended funds that cannot be categorised as Level 2 and all alternative funds he fair value of these Funds is represented by the AV, based on the value of the underlying assets, adjusted if necessary on the basis of the internal control system

7.2 FAIR VALUE HIERARCHY

he following table shows an analysis of financial instruments measured at fair value at 31 December 2023, classified by level in the fair value hierarchy

Fair value hierarchy

	31.12.2023				31.12.2022
Description (€m)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets
Financial assets at FV OC	136,848	2,447	299	139,594	122,170	7,913	152	130,235
quity instruments	345	0	204	549	343	0	110	453
Fixed income instruments	136,503	2,447	95	139,046	121,827	7,411	42	129,280
Other investments	-	-	-	-	-	502	-	502
Financial assets at FV L	4,441	35,892	7,873	48,205	4,996	30,335	8,170	43,501
Receivables	-	-	-	-	-	-	110	110
quity instruments	482	3	27	512	258	26	20	304
Fixed income instruments	2,440	120	3	2,564	2,139	146	-	2,285
Other investments	1,519	35,768	7,843	45,129	2,599	30,163	8,040	40,802
Derivative financial
instruments	-	4,257	-	4,257	-	6,110	-	6,110
Total	141,289	42,596	8,172	192,056	127,166	44,358	8,323	179,846
Financial liabilities
Financial liabilities at fair value	-	-	-	-	-	-	-	-
Derivative financial	(0)	(1,136)	(3)		(0)	(971)	(4)	(975)
instruments				(1,138)
Total	(0)	(1,136)	(3)	(1,138)	(0)	(971)	(4)	(975)

ransfers between levels 1 and 2, relating entirely to the oste Vita insurance group, are shown below:

Transfers from Level 1 to Level 2
Description	31.12.2023		31.12.2022
(€m)	Level 1	Level 2	Level 1	Level 2
Transfers of financial assets	(1,666)	1,666	(1,270)	1,270
Financial assets at FV OC
quity instruments	-	-	-	-
Fixed income instruments	(137)	137	(583)	583

Poste Italiane Group		oste taliane's Financial tatements at 31 December 2023
tructured bonds	-	-	-	-
Other investments	-	-	-	-
Financial assets at FV L
Receivables	-	-	-	-
quity instruments	(1)	1	(6)	6
Fixed income instruments	(43)	43	(66)	66
tructured bonds	-	-	-	-
Other investments	(1,484)	1,484	(613)	613
Transfers of financial liabilities	-	-	-	-
Financial liabilities at fair value	-	-	-	-
Derivative financial instruments	-	-	-	-
Net transfers from Level 1 to Level 2	(1,666)	1,666	(1,270)	1,270

Reclassifications from level 1 to level 2 relate to financial instruments whose value, at 31 December 2023, is not observable in a liquid and active market, as defined in the Group's Fair Value olicy Reclassifications from level 2 to level 1, on the other hand, relate to financial instruments whose value, at 31 December 2023, is observable in a liquid and active market

Movements in level 3 during the year are shown below:

	Financial assets
Description (€m)	Financial assets at FVTOCI	Financial assets at FVTPL	Derivative financial instruments	Total
Balance at 1 January 2023	153	8,170	-	8,323
urchases/ ssues	27	687	-	714
ales/ xtinguishment of initial accruals	(27)	(482)	-	(509)
Redemptions	-	-	-	-
Changes in fair value through profit or loss	-	(76)	-	(76)
Changes in fair value through equity	(7)	-	-	(7)
ransfers to profit or loss	-	-	-	-
Gains/Losses in profit or loss due to sales	-	-	-	-
ransfers to level 3	66	13	-	79
ransfers to other levels	(16)	(461)	-	(477)
Changes in amortised cost	-	0	-	0
Write-off	(0)	(0)	-	(1)
Other changes (including accruals at end of period)	93	0	-	93
Change in scope	11	22		32
Balance at 31 December 2023	299	7,873	-	8,172

Changes in financial instruments - level 3

2023 Annual Report

Financial instruments classified in level 3 are held primarily by oste Vita pA and, to a residual extent, by oste taliane pA, oste ay pA, and the companies et Life and et nsurance

n the case of the Group's insurance company, instruments in level 3 regard funds that invest primarily in unquoted instruments, whose fair value measurement is based on the latest available AV ( et Asset Value) as announced by the fund manager his AV is adjusted according to the capital calls and reimbursements announced by the managers and occurring between the latest AV date and the measurement date hese financial instruments primarily consist of investments in private equity funds and, to a lesser extent, real estate funds associated entirely with Class products

related to separately managed accounts Movements during the period regard the purchase of new investments, redemptions of units of unquoted close-end funds and changes in fair value during the period

At 31 December 2023, in compliance with both the aforementioned fair value guidelines of the oste taliane Group and additional requirements contained in the additional guidelines approved by the oste Vita's Board of Directors on 15 December 2021, approximately €461 3 million of financial instruments were reclassified from level 3 fair value to level 2 fair value, referring mainly to class UC reclassified following the analyses carried out from a look-through perspective

Poste Italiane SpA

For the sake of completeness, the following table shows an analysis of financial instruments of oste taliane pA measured at fair value at 31 December 2023, classified by level in the fair value hierarchy

Fair value hierarchy
Description			31.12.2023	31.12.2022
(€m)	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Financial assets attributable to BancoPosta RFC	32,901	4,425	26	37,352	33,017	6,274	20	39,311
Financial assets at FVTOCI	32,901	168	-	33,069	33,017	144	-	33,161
Fixed income instruments	32,901	168	-	33,069	33,017	144	-	33,161
Financial assets at FVTPL	-	-	26	26	-	20	20	40
Equity instruments	-	-	26	26	-	20	20	40
Derivative financial instruments	-	4,257	-	4,257	-	6,110	-	6,110
Financial assets outside ring-fence	444	-	201	645	434	-	103	537
Financial assets at FVTOCI	444	-	192	636	434	-	103	537
Fixed income instruments	99	-	-	99	91	-	-	91
Equity instruments	345	-	192	537	343	-	103	446
Financial assets at FVTPL	-	-	9	9	-	-	-	-
Convertible bond loan	-	-	9	9	-	-	-	-
Derivative financial instruments	-	-	-	-	-	-	-	-
Total assets at fair value	33,345	4,425	227	37,997	33,451	6,274	123	39,848
Financial liabilities attributable to BancoPosta RFC	-	(1,136)	(2)	(1,138)	-	(971)	(4)	(975)
Derivative financial instruments	-	(1,136)	(2)	(1,138)	-	(971)	(4)	(975)
Financial Liabilities outside ring-fence	-	-	-	-	-	-	-	-
Derivative financial instruments	-	-	-	-	-	-	-	-
Total liabilities at fair value	-	(1,136)	(2)	(1,138)	-	(971)	(4)	(975)

here were no transfers of the related financial instruments measured at fair value on a recurring basis between Level 1 and Level 2 in the year under review

Movements in level 3 during the year are shown below:

Changes in financial instruments - level 3

		Financial assets
Description (€m)	Financial assets at FVTOCI	Financial assets at FVTPL
Balance at 1 January 2023	103	20	123
Purchases/Issues	3	9	12
Changes in fair value through profit or loss	-	6	6
Changes in fair value through equity	(7)	-	(7)
Other changes (including accruals at end of period)	93	-	93
Balance at 31 December 2023	192	35	227

he financial instruments classified in level 3 are mainly held by the RFC pecifically, changes during the year mainly relate to the purchase of an additional share of sennder echnologies GmbH, for a total of €93 million, classified as a financial asset at fair value through other comprehensive income, and the subscription, for approximately €8 5 million, of Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

a portion of the convertible bond issued by sennder echnologies GmbH and classified as a financial asset at fair value through profit or loss

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

8. HEDGING TRANSACTIONS

Below is a description of the hedging transactions entered into by the oste taliane Group, as distinguished between fair value hedges and cash flow hedges, which are accounted for as per A 39 – Financial Instruments: Recognition and Measurement he fair value hedges and cash flow hedges described below refer mainly to fixed income instruments or inflation-linked securities in relation to Banco osta operations

Hedging transactions - Fair value hedges

Hedging transactions on fixed income and inflation-linked government bonds

he oste taliane Group has a government bond portfolio – made up of fixed-rate B s and inflation-linked B s – subject to movements in fair value due to changes in interest rates and in the inflation rate

o limit the effects of interest rates on fair value, Banco osta RFC enters into Over the Counter (O C) interest rate swaps to hedge the fair value of the bonds held in the portfolio he objective of these transactions is to have instruments that can offset changes in fair value of the portfolio due to interest rate fluctuations and the rate of inflation he credit risk of the talian Republic is not hedged and is set for the duration of the swap

Full hedges and partial hedges are implemented, with the start date equal to the date of purchase of the instrument (swap spot start) and after the purchase of the instrument (swap forward start), respectively

he Group evaluates the effectiveness of every hedging relationship in offsetting movements in fair value through a retrospective effectiveness test and a prospective effectiveness test304F ³⁰⁵, using the approaches illustrated in the following notes

he retrospective effectiveness test is run by utilising the "dollar offset approach through the hypothetical derivative305F ³⁰⁶" With this approach, consideration is given to the hedge ratio of the change in fair value of the actual derivative to the change in fair value of the hypothetical derivative occurred between inception and the valuation date he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125% he hypothetical derivative and the actual hedging instrument have a settlement date consistent with the hedge inception (spot or forward start) and differ solely in their spread which is considered, as already indicated, the main source of ineffectiveness306F ³⁰⁷ he partial

³⁰⁵ IAS 39 requires two effectiveness tests:

• prospective effectiveness test: attests that the hedging relationship is expected to be highly effective in future periods;

A hedge can be ineffective when the hedging instrument and the hedged item: are in different currencies; have different maturities; use different underlying interest rates; are exposed to different counterparty risks; and when the derivative is not equal to zero at inception.

³⁰⁶ The dollar offset approach is a quantitative method that involves a comparison between movements in the fair value or cash flow of the hedging instrument and the movements in the fair value or cash flow of the hedged instrument attributable to the risk hedged. Depending on the policy selected, this approach can be used:

³⁰⁷ For the hypothetical derivative use is made of the mid-market spread, which makes the present value at the settlement date equal to 0, and for the actual derivative the interest rate agreed upon with the counterparty.

^• retrospective effectiveness test: attests that the hedging relationship has been effective from inception to the reporting date.

For a hedge to be effective, the prospective effectiveness test must show that the hedge is highly effective in offsetting fair value or cash flow movements attributable to the hedged instrument during the designation period, while the result of the retrospective test must show offset ratios ranging from 80% to 125%.

^• on a cumulative basis, by observing the performance of the hedge since inception;

^• on a periodic basis, by comparing the hedge performance with that of the last test.

The dollar offset approach can be implemented through a hypothetical derivative, that is by constructing a theoretical derivative to compare the relevant theoretical movements in far value or cash flow with those of the hedged instrument (actual derivative).

ineffectiveness of the hedge, equal to the difference between the changes in value of the two derivatives (hypothetical and actual) represents the net effect of the hedge recognised separately in profit or loss

For the purposes of the prospective effectiveness test, different approaches have been adopted, depending on the characteristics of the hedging instrument pecifically:

• the "Critical terms307F ³⁰⁸" approach for swap spot start, for which it has been determined at inception that the characteristics of the fixed leg make it possible to replicate exactly the fixed cash flows generated by the hedged item;
• the "Dollar offset through the hypothetical derivative" approach for forward start swaps and forward sales of the subsidiary oste Vita, for which the prospective effectiveness test is performed by calculating the hedge ratio between the change in fair value of the hypothetical derivative and the change in fair value of the actual derivative308F ³⁰⁹ he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

With respect to the oste Vita Group, forward sales expired in 2021 and were entered into in order to preserve, following unexpected changes in interest rates and/or credit risk, unrealised gains on government bonds of the eparately Managed Account osta Valore iù he maturity of these positions was set to take into account the mismatch of cash flows between the portfolio of financial assets and liabilities

Hedging on repurchase agreements

he oste taliane Group carries out transactions in repurchase agreements, on euro-government securities or with the guarantee of the talian state for various purposes, including to invest in government bonds, to meet liquidity needs arising from the dynamics of funding on current accounts, to actively manage the treasury position and to manage guarantee deposits for collateralisation transactions hese transactions are mainly fixed-rate transactions and are therefore exposed to changes in fair value due to fluctuations in interest rates

o limit the effects of interest rates on fair value, the Group enters into Over the Counter (O C) interest rate swaps (fair value hedges) designated as specific hedges of repurchase agreements in the portfolio

he Group evaluates the effectiveness of every hedging relationship in offsetting movements in fair value through a retrospective effectiveness test and a prospective effectiveness test, using the approaches illustrated in the following notes he retrospective effectiveness test is run by utilising the "dollar offset approach through the hypothetical derivative" With this approach, consideration is given to the hedge ratio of the change in fair value of the actual derivative to the change in fair value of the hypothetical derivative occurred between inception and the valuation date he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125% he hypothetical derivative and the actual derivative have a settlement date consistent with the hedge inception and differ solely in their fixed rate component which is considered the main source of ineffectiveness309F ³¹⁰ he partial ineffectiveness of the hedge, equal to the difference between the changes in value of the two derivatives (hypothetical and actual) represents the net effect of the hedge recognised separately in profit or loss

³⁰⁸ The critical terms approach involves a comparison between the critical terms of the hedging instrument with those of the hedged item. The hedging relationship is highly effective when all the critical terms of the two instruments match perfectly and there are no features or options that might invalidate the hedge. Critical terms include, for example: notional amount of the derivative and principal of the underlying, credit risk, timing, currency of the cash flows.

³⁰⁹ Calculated by assuming a parallel shift of +/- 100 bps of the yield curves.

³¹⁰ Hedging is performed by defining the variable-rate component simply linked to the Euribor and the fixed-rate component incorporating market conditions. The hypothetical derivative uses the fixed rate at the market mid which makes the present value at the settlement date equal to 0, while the actual derivative uses the rate agreed upon with the counterparty.

For the purposes of the prospective effectiveness test, the Group adopts the "dollar offset approach through the hypothetical derivative", performed by calculating the hedge ratio between the change in fair value of the hypothetical derivative and the change in fair value of the actual derivative310F ³¹¹ he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

Hedging transactions – Cash flow hedges

Hedging transactions on inflation-linked government bonds and forecast transactions

o limit the exposure to interest rate risk deriving from the need to reinvest the cash generated by maturing bonds held in portfolio and the 10-year indexed component of yields on the deposit with the M F of inflows from the ublic Administration, Banco osta RFC enters, if necessary, into forward purchases n addition, to pursue the stabilisation of returns, forward sales are entered into hese derivatives qualify as cash flow hedges of forecast transactions

n addition, the Group has a portfolio of inflation-linked B s subject to cash flow variability in relation to inflation

o limit the effects of interest rates on cash flows, the Group enters into O C interest rate swaps or inflation swaps to hedge the cash flows of the bonds held in portfolio he objective of these transactions is to stabilise until maturity the return of the instrument, regardless of movements of the variable parameter

he Group evaluates the effectiveness of the designated derivative in every hedging relationship through a retrospective effectiveness test and a prospective effectiveness test

With regards to the hedges of forecast transactions, the retrospective effectiveness test involves the calculation of a hedge ratio defined as the ratio of the difference between the fair value of the forward transaction entered into with the counterparty on the test and inception date and the present value of the difference between the theoretical forward price of the B calculated at the test and inception date Assuming a perfect match between the forward prices of the counterparties and the theoretical forward prices, the hedge ratio is always equal to 100% As such, there are no sources of ineffectiveness

For the purposes of the prospective effectiveness test, the critical terms approach is applied, considering at inception the consistency between the hedging instrument and the hedged item on the basis of the qualitative characteristics of the contracts31F 312

With respect to inflation-linked bonds, the retrospective effectiveness test considers the hedge ratio between the change in fair value of the actual derivative to the change in fair value of the hypothetical derivative occurred between the date of inception and the valuation date he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

he hypothetical derivative and the actual derivative have the settlement date that matches the inception of the hedge and differ in terms of their fixed income component312F ³¹³ Moreover, for the derivatives used to hedge inflation-linked B , the fair value at the settlement date reflects also the interest accrued of the instrument accrued from the latest interest payment date to the date of settlement of the derivative As such, both are considered the main sources of ineffectiveness

³¹¹ Calculated by assuming a parallel shift of +/- 100 bps of the yield curves.

³¹² The notional amount of the forward contract must be set, at the settlement date, as equal to the nominal amount of the instrument in case of purchase, and equal or lower than the nominal amount of the instrument in case of sale. The underlying of the forward contract must coincide with the instrument that must be purchased or sold (in this case it must be an instrument in the portfolio) at the settlement date. The settlement date must be the same as the date on which the cash flow to be hedged is expected, in case of forward purchase, or must be related to the year in which the total return must be stabilised, in case of forward sale.

³¹³ The hypothetical derivative uses the fixed rate, which makes the present value at the settlement date equal to 0, while the actual derivative uses the interest rate agreed upon with the counterparty.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he change in fair value of the actual derivative is recognised through equity, for the effective portion of the hedge, while the change in fair value of the ineffective portion is recognised through profit or loss

For the purposes of the prospective effectiveness test, different approaches have been applied, depending on the characteristics of the hedging swap pecifically:

• the "Critical terms" approach for derivatives for which it has been determined at inception that the characteristics of the indexed leg of the swap make it possible to replicate exactly the variable cash flows generated by the hedged item;
• the "Dollar offset through the hypothetical derivative" approach for derivative contracts with a fixed rate applicable to a nominal amount growing constantly at six-month intervals until the derivative expires For these contracts the prospective effectiveness test is performed by calculating the hedge ratio between the change in fair value of the hypothetical derivative and the change in fair value of the actual derivative31F ³¹⁴ he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

Effects of hedging transactions on profit or loss and financial position

he table below shows the hedging instruments by expiration date he average interest rate of the interest rate swaps shown represents the contractually expected average fixed rate of the hedging transaction by maturity band

Time distribution based on remaining duration of cash flow hedge contracts

	Maturity
(€m)	Up to 1 year	1 - 5 years	Over 5 years	Total
Cash flow hedges - Interest rate risk
Interest rate swaps
ominal	-	609	2,678	3,287
Average rate %	-	4 832%	3 617%	3 842%

Time distribution based on remaining duration of fair value hedge contracts

	Maturity
(€m)	Up to 1 year	1 - 5 years	Over 5 years	Total
Fair value hedges - Interest rate risk Interest rate swaps
ominal	4,021	-	25,006	29,027

he table below shows the effects of hedging transactions, broken down by type, on profit or loss and the financial position

Fair value hedges - Interest rate risk

³¹⁴ Calculated by assuming a parallel shift of +/- 100 bps of the yield curves.

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

(€m)	Nominal	Carrying amount*			Accumulated amount of fair value hedge adjustments on the hedged item	Change in value used to recognise ineffective portion of hedge	Accumulated amount of fair value hedge adjustments on the hedged item in case of discontinuing
Hedged items		Assets	Liabilities	Assets	Liabilities
Fixed income instruments, of which:
at amortised cost		11,080	-	(1,944)		340	(419)
at FV OC		11,478	-			383	(615)
Repurchase agreements		-	(3,966)		38	(103)	-
Hedging instruments
Interest rate swaps	29,027	4,252	(617)			(621)
Profits/(losses) on hedging recognised in P&L						(1)

* ot including provision to cover expected losses

Cash flow hedges - Rate risk

(€m)	Nominal	Carrying amount		Change in value used to recognise ineffective portion of hedge	Cash flow hedges
Hedged items		Assets	Liabilities		Hedge reserve	Discontinued
Fixed income instruments, of which: at FV OC		3,730	-	38
Hedging instruments
Forward purchases	-	-	-	-	46	- -
Interest rate swaps	3,287	5	(518)	(38)	(461)	- -
Profits/(losses) on hedging recognised in P&L				-

he table below shows the effects of cash flow hedges on other comprehensive income

Impact on OCI of cash flow hedges - Rate risk

(€m)	Profits/(losses) on hedging recognised	Transfers to profit or loss:
	in OCI, period fair value (inc./dec.)	Hedge accounting effects	Discontinued
Fixed income instruments	75	(307)	-
M F deposit yield	5	(5)
Bond	-	(6)	-
Total	80	(318)	-

Reform of reference indices for determining interest rates

he reform of key interest rate benchmarks, called the " nterBank Offered Rate ( BOR) Reform", involved regulators in various jurisdictions around the world with the aim of replacing some interbank rates with risk-free alternative rates and preparing guidelines to update contract models

Currently, the main benchmarks for the euro area are:

• the uro hort erm Rate R (administered by the uropean Central Bank and published as of 2 October 2019) which replaced the uro Over ight ndex Average ( O A - no longer listed as of 1 January 2022) redefining it as R plus 8 5 bps;
• the UR BOR (administered by the uropean Money Market nstitute), whose reform process ended in ovember 2019

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023 he Group has financial instruments indexed to the UR BOR, which continues to be quoted daily, and the related cash flows continue to be exchanged with counterparties as usual n relation to this parameter, there is therefore no uncertainty

resulting from the BOR reform on 31 December 2023 hese instruments are subject to daily collateralisation remunerated to O A (from 2022 defined as R plus 8 5 bps) n addition, the Group holds interest rate swaps designated as fair value hedges that have the variable "leg" indexed to the

UR BOR, with a nominal value of €29,027 million, almost entirely held by Bancoposta RFC For these instruments, the cash flows at 31 December 2023 are discounted at the O A rate ( R +8 5 bps) and, for €201 million, at the R rate as defined in the contracts in place with the counterparties

9. PROCEEDINGS PENDING AND PRINCIPAL RELATIONS WITH THE AUTHORITIES

he following information is provided in accordance with accounting standard A 37 – Provisions, Contingent Liabilities and Contingent Assets

TAX DISPUTES

On 19 April 2018, the ax Authorities in Rome (Guardia di Finanza – ucleo di olizia economico-finanziaria) entered the offices of SDA Express Courier he purpose of the inspection was to verify the company's compliance with the requirements regarding VA , income tax, RA and withholding tax for the years 2014, 2015 and 2016, pursuant to and for the purposes of articles 52 and 63 of residential Decree no 633/72, art 33 of residential Decree no 600/73, art 2 of Legislative Decree no 68/2001 and Law no 4/1929 On 29 ovember 2018, the audit was formally declared at an end he main finding in final notice of assessment for about €1 million regards the deduction of VA relating to the adjustment entries issued by the company in connection with discounts granted to customers following an increase in the number of shipments ubsequently, on 5 December 2019, a notice of assessment for the year 2014 alone was notified with a total claim of €0 4 million, which, referring to the Report on Findings ( VC), mainly contests the VA deducted On 3 February 2020, the Company appealed against this notice and provided for the provisional payment of the fine imposed During the first half of 2023, the facilitated conciliation procedure was formalised, which led to the settlement of the case for the 2014 tax year

n addition, on 27 May 2021, the DR (Regional ax Office) served a further notice of assessment for the tax year 2015 similar to the one already filed for the year 2014 in which primarily the VA deducted was contested his deed has not been challenged and a procedure has been initiated with the Lazio DR for an overall re-examination of the dispute relating to the credit notes with reference to all the periods covered by the VC (from 2014 to 2017) in an attempt to reach an outof-court settlement

During the course of 2022, an out-of-court settlement was reached with the Lazio Regional ax Office for Large axpayers, which in fact resulted in the partial cancellation of the VA findings resulting from the Guardia di Finanza's ( talian ax olice) Report on Findings of 29 ovember 2018 also for the year 2015 and 2016 n particular, the annulment also includes the notice of assessment for the year 2015, which became final at the same time, and which was redetermined based on an internal review by the Agenzia delle ntrate from approximately €1 2 million to a total of €51 thousand

On the other hand, the tax settlement procedure for the years 2017 and 2018 is being finalised according to the time-lines agreed with the Agency

n ovember 2018, Consorzio ostemotori received notice of an order issued by the Criminal Court in Rome and of a precautionary seizure regarding the consortium, amounting to €4 6 million On 13 May 2019, the G U ( reliminary judge) of the Ordinary Court of Rome downgraded the original charges, ordering the committal for trial only in relation to a portion of the charges relating to the passive invoicing transactions of a subcontractor and a tax consultant of one of the partners he Consortium mandated an external criminal lawyer to file an application for release of the criminal seizure ordered against the Consortium On 20 December 2021, a petition for release from seizure was filed and on 24 December 2021, the Court of Rome issued an order for the restitution of the sum of €0 3 million credited back to the Consortium's current account on 7 February 2022

SOCIAL SECURITY DISPUTES

ince 2012, and up until 31 December 2023, the stituto azionale per la revidenza ociale ( , the ational nstitute of ocial ecurity) office at Genoa onente and Roma ur has issued Postel with some payment orders, for a total amount payable of €27 48 million According to , this amount represents social security contributions funding income support, extraordinary income support, unemployment benefit and family benefits not covered by the contributions paid to O Appeals against these requests were brought before the Court of Genoa n support of the arguments of ostel in a memo issued on 20 October 2016, the Ministry of Labour stated that the social security contributions system applicable to oste

taliane also applies to all the other Group companies, with the sole exception of those that provide air transport, banking and express delivery services

ome of the judgements have already been decided by the Court of Genoa and, on their outcome, against debit notices totalling €13 2 million, the Company was ordered to pay only the CUAF contributions of 0 68%, less the family allowances paid by ostel to employees, amounting to €0 3 million, while nothing was deemed to be due under the C G, C G and mobility being at the time ostel wholly owned by the tate through oste taliane and therefore included among the industrial enterprises of the tate for which the law excludes the obligation to pay redundancy and mobility filed an appeal for the first tranche of requests made (€9 16 million), contesting the merits of the judgement at first instance and the sum arrived at n the view of , the rate applicable for contributions for family benefits, in line with recent guidance issued by , should have been 4 40% in place of the 0 68% applied in the payment notices involved in the court action n two judgements dated 28 December 2018, the Court of Appeal in Genoa confirmed in full the judgements at the first instance, rejecting ' appeals, who filed appeals in Cassation notified on 28 June 2019 to ostel, which appeared before the court

On 20 and 21 February 2024, the Court of Cassation filed its rulings rejecting the main appeals brought by and absorbing the cross-appeals brought by the Company he Court stated that given the special and exclusive nature of the post scheme - which is a self-contained social security and welfare system - nothing else is owed by the Company by way of social security and welfare contributions Assessments are currently being conducted as to what action should be taken to recover the sums paid following the first and second instance judgements

Below are the judgements already decided and those pending:

• With the judgement of 19 eptember 2019, the Court of Genoa confirmed the position, ordering ostel to pay , by way of CUAF contributions relating to the period from May 2011 to ovember 2012, the sum of €0 08 million, deeming the higher sums claimed in the debit notices (amounting in total to approximately €4 million) not due By judgement of 21 May 2021, the Court of Appeal of Genoa dismissed the main appeal and the cross-appeal appealed in Cassation and ostel joined the proceedings On 26 January 2023, the Court of Cassation ordered the case to be remitted to the register for processing together with other appeals he hearing before the Court of Cassation was held on 10 October 2023 On 11 January 2024, the Court of Cassation filed its ruling declaring the inadmissibility of the appeal filed by against the ruling published on 21 May 2021, because it was out of time, and sentencing the nstitute to reimburse the Company for legal costs his judgement therefore renders final the finding made by both the Court and the Court of Appeal of Genoa
• n a judgement of 1 February 2021, the Court of Genoa cancelled the debit notice (totalling approximately €0 64 million) for the period from December 2012 to April 2015 (excluding July 2014) and ordered to pay ostel the sum of €0 06 million, plus interest By judgement of 2 February 2022, the Court of Appeal of Genoa dismissed the appeal brought by the nstitute appealed in at the Court of Cassation and ostel joined the proceedings he Company is therefore waiting for the hearing in the Court of Cassation to be scheduled
• By means of the judgements of 26 May 2021, the Court of Genoa cancelled the debit notices (for a total of approximately €3 1 million) for certain periods between February 2011 and January 2017 and ordered the payment of the lower amounts restated for a total of €0 17 million n its judgements of 18 May 2022 and 6 June 2022, the Court of Appeal of Genoa rejected the Company's appeals, as well as the cross-appeals filed by the nstitute ostel and appealed the judgements at the Court of Cassation, for which hearings are pending
• With a ruling published on 20 eptember 2022, the Court of Appeal of Genoa, partially reforming the first instance ruling of 29 December 2020, ordered the Company to pay the amount indicated in the Debit otice in the amount of approximately €0 009 million he ruling became final because did not bring the subsequent appeal in Cassation
• Additional administrative proceedings are still pending relating to the appeals submitted by ostel against the notices of adjustment for the periods from May 2009 to August 2023

n addition, on 8 October 2019, requested to regularise contributions from eptember 2014 to eptember 2019 at the non-harmonised CUAF rate of 4 40% of taxable income for social security purposes With regard to the latter request, the Company acted differently depending on the period under consideration:

• for October, ovember and December 2019, ostel has adjusted to the payment of the CUAF contribution in the amount of 4 40%, subject to repetition reserve;
• for the previous period from eptember 2014 to the end of 2015, ostel appealed through administrative channels against the debit notices received from with a request for payment of the CUAF at 4 40%;
• for the year 2018 and the first 7 months of 2019, two Debit otices were served with the request for payment of the CUAF at 0 68% and minor C G, C G contributions to ostel, which paid, subject to repayment pending the decision of the appeal pending in the upreme Court;
• as of January 2020, ostel shall pay the CUAF rate to at the rate of 0 68% instead of the rate of 4 40%, as a result of the provisions of Article 11, paragraph 5 bis of Law Decree no 162 of 2019, converted by Law no 8 of 28 February 2020

aking into account the judgements issued thus far, the reasons given for the judgements and the latest appeals brought by , the Company has adjusted its provisions for risks and charges based also on the opinion of its legal advisors

rovisions recognised in the financial statements at 31 December 2023 amount to €13 36 million

MAIN PROCEEDINGS PENDING AND RELATIONS WITH THE AUTHORITIES

Autorità Garante della Concorrenza e del Mercato (AGCM - the talian Antitrust Authority)

On 9 March 2015, the Authority notified oste taliane pA of an investigation of Banco osta RFC for alleged violation of articles 20, 21 and 22 of the Consumer Code, regarding the "Libretto mart" product On 21 December 2015, the AGCM notified oste taliane of its final ruling in which it deemed the Company's conduct unfair and imposed a fine of €0 54 million, limited to a tenth of the maximum applicable amount taking into account the mitigating circumstance that oste taliane had adopted initiatives aimed at allowing customers to benefit from the bonus rate he Lazio Regional Administrative Court's ruling, which did not uphold the appeal against the aforementioned penalty, was challenged before the Council of tate, which set the hearing for 6 June 2024

On 3 October 2018, Poste Italiane proceeded to pay the fine of €23 million plus interest imposed by the Autorità Garante della Concorrenza e del Mercato (AGCM - the Antitrust Authority) following its ruling, in January 2018, that oste taliane had abused its dominant market position in the period from 2014 to 2017 (proceedings A493), as per art 102 of the F U his did not constitute acceptance or admission of liability in relation to the alleged misconduct and does not affect the Company's right to defend its position through the appropriate channels oste taliane challenged this measure before the Lazio Regional Administrative Court which, by means of ruling no 13477/2023, rejected the appeal oste taliane appealed to the Council of tate he setting of the hearing is pending

On 19 ovember 2019, the AGCM initiated proceedings PS/11563 against Poste Italiane in order to ascertain allegedly unfair commercial practice in the delivery of mail and, in particular, registered mail, in possible violation of articles 20, 21 and 22 of the Consumer Code n particular, according to some customers: i) the advertised features of the "registered mail delivery" service are not reflected in the service actually provided; ii) the advertising for the "digital registered mail

collection" service does not make it clear that the service may no longer be free of charge in the near future and that, in any case, there are restrictions on its use, since it can only be accessed if the sender has authorised it n January 2020, a number of consumer associations were admitted to the proceedings At the conclusion of the proceedings, by way of a measure notified on 15 eptember 2020, the Authority imposed an administrative fine of €5 million, payment of which was made on 5 January 2021 he Authority acknowledged that oste had correctly complied with the provision However, the Company appealed to the Lazio Regional Administrative Court, which was not successful, and appealed to the Council of tate whose hearing is scheduled for 26 March 2024

On 6 April 2020, pursuant to art 9, paragraph 3-bis of Law 192/98 and art 14 of Law 287/90, the AGCM initiated proceedings A539 against Poste Italiane, following a complaint by a third-party supplier that oste taliane had presumably imposed unjustifiably burdensome contractual clauses n particular, following the termination of contractual relations in mid-2017, the supplier was not, in fact, able to otherwise offer the services it was providing on the market because of the obligation to comply with rules and organisational parameters considered such as to make the company structure excessively rigid, making it unsuitable to operate with parties other than oste taliane A hearing was held on 8 June 2020 at which oste taliane stated its position and, subsequently, the Authority requested the delivery of documentation he final hearing was held on 3 May 2021, during which oste taliane set out its position and presented its defence At the conclusion of the proceedings, by way of a measure notified on 6 August 2021, the Authority imposed an administrative fine of more than €11 million for abuse of economic dependence, payment of which was made on 6 eptember 2021 oste taliane appealed against the above-mentioned measure before the Lazio Regional Administrative Court ( AR), which found that oste taliane's actions were lawful and annulled the above-mentioned sanction with ruling no 10044/23 issued on 13 June 2023 AGCM appealed against the Lazio Regional Administrative Court's ruling on 10 October 2023, while oste taliane lodged a cross-appeal on 9 ovember 2023 he setting of the hearing is pending

On 9 August 2022, the talian Antitrust Authority ("AGCM" or "Authority") - as a result of proceedings /11936 (" roceedings") - notified oste ay with measure no 30286 ("Measure"), in which it censured the conduct of the Company, claiming that, for mobile telephony offers subscribed on a flat fee, oste ay charges a consumption-based fee - more expensive than the ordinary one - when it is impossible to periodically renew the offer due to lack of sufficient credit "in order to guarantee the continuity of the service" without adequate information and without, therefore, a prior and informed consent of the consumer herefore, in the Authority's view, the conduct engaged in by oste ay would constitute a breach of Article 26(1)(f) of the Consumer Code

As a result, the Company (i) is ordered to pay an administrative fine of €1 8 million, calculated on the basis of the turnover relating to the provision of electronic communication networks and services, and then reduced to €1 5 million, in consideration of the mitigating circumstance "relating to certain measures taken by the professional to eliminate the conduct"

Due to, inter alia, the partial and insufficient acknowledgement of the measures adopted by the Company, the refusal to examine the further measures proposed and the failure to accept the defence petitions submitted, the Company deemed it appropriate to lodge an appeal against the Measure before the Lazio Regional Administrative Court with an appeal filed on 28 October 2022 herefore, the payment of the fine imposed was made by oste ay with express reservation of appeal and, in the event, of repayment of the amount paid in the event of annulment (total or partial) of the Measure by the Lazio Regional Administrative Court and/or the Council of tate he purpose of the appeal before the Lazio Regional Administrative Court is to obtain (i) as a preliminary step, the annulment of the measure, (ii) in the alternative, the annulment of the penalty imposed or (iii) in the further alternative, its reduction to the minimum amount he setting of the first trial hearing is pending

On 7 ovember 2022, oste ay, while not accepting the Resolution, forwarded to AGCM the required compliance report, which illustrated the measures adopted by oste ay to overcome AGCM's objections, even though it had contested their grounds in the appeal pending before the Lazio Regional Administrative Court On 2 December 2022, the Authority, having

received a response from oste ay to its request for further information, informed oste ay after the Council meeting of 13 December 2022 that it had taken note of its compliance with the order

On 24 March 2022, the talian Antitrust Authority (AGCM) initiated proceeding PS/11287 against Poste Italiane for alleged unfair commercial practices in relation to the information on the expiry and prescription dates of paper nterest-bearing ostal Certificates, as (i) during the placement of the postal certificates, oste allegedly omitted to indicate the maturity and/or prescription date, as well as to provide information regarding the legal consequences arising from the expiry of the aforementioned terms and/or provided such information with a confusing and deceptive wording; (ii) in the management of the postal certificates that had expired over the last five years, oste allegedly omitted to inform the holders of postal certificates close to the expiry of the prescription period, of the expiry of that period and the legal consequences arising in the event of failure to request the redemption of the postal certificate within that period On 13 April 2022, oste sent a memorandum to the AGCM in which it responded to the request for information and the objections contained in the writ On 30 August 2022, the AGCM notified oste of the otice of nvestigative Findings, substantially confirming the objections of the opening proceedings On 19 eptember 2022, oste filed its final statement of defence, accompanied by the steps it had taken, on a voluntary basis, to eliminate the Authority's concerns, without complying with the objections raised in the proceedings On 4 ovember 2022, the Authority notified oste of its final decision imposing an administrative penalty of €1 4 million his amount was thus quantified taking into account the actions implemented by the Company on a voluntary basis, which were deemed appropriate to improve the information provided to consumers; in fact, the Authority granted oste taliane a 60% reduction in the amount of the fine n line with the provisions of the final measure, on 2 February 2023, the Company sent its Report of Compliance with the AGCM's warning he Resolution itself was challenged at the Regional Administrative Court by the Company, which, at the outcome of the hearing on the merits of 7 June 2023, issued an order, on 13 eptember 2023, ordering the suspension of the trial in question, pending the definition of the preliminary referral to the Court of Justice of the uropean Union ordered by the same Regional Administrative Court with order no 12962 of 1 August 2023

With a measure adopted at the meeting of 30 January 2024 and notified to oste taliane on 7 February 2024, the AGCM initiated an investigation procedure against the Company in order to ascertain the existence of a possible breach of Article 8, paragraph 2-quater, of Law no 287/1990 At the same time, the Authority initiated proceedings to verify the actual existence of the requirements for the adoption of precautionary measures pursuant to Article 14-bis of the same law pecifically, the Authority observed that oste, through its subsidiary oste ay pA, is active in the electricity and gas supply sector, and allegedly denied two of the latter's competing companies access, pursuant to Article 8, paragraph 2 quater of Law no 287/90, to the resources made available to oste ay, of which it has exclusive use in connection with its activities within the perimeter of the universal postal service he Authority also ordered inspections, which were held on 7 February 2024, and set the conclusion of the proceedings at 19 July 2024, granting oste a period of seven days to file pleadings and documents relating to the precautionary proceedings On 14 February 2024, the Company filed its memorandum in the precautionary proceedings, contesting the Authority's approach and, in particular, the disapplication of the provisions of Article 1(6) of Law Decree no 59/2021, as amended and supplemented, exempting oste from the application of Article 8, paragraph 2-quater, of Law no 287/1990 until 31 December 2026

Autorità per le Garanzie nelle Comunicazioni (AGCOM - the talian Communications Authority)

ursuant to Law Decree no 201 of 6 December 2011, converted into Law 214 of 22 December 2011, responsibility for regulation and supervision of the postal sector was transferred to the talian Communications Authority (AGCom)

Following transposition into talian law of the third uropean postal services directive (Directive 2008/6/ C), the so-called "net avoided cost" method has been applied in quantifying the cost of the universal service"314F ³¹⁵ n this regard:

• (i) On 24 February 2023, AGCom Resolution 28/23/CO was published, initiating the procedure to verify the net cost of the universal postal service incurred by oste taliane for the years 2020 and 2021 On 22 December 2023, AGCom Resolution 322/23/CO was published, with which the Authority launched the public consultation and oste taliane provided its comments within the deadline On 14 March 2024, AGCom Resolution 62/24/CO was published, concluding the procedure to verify the net cost of the universal postal service incurred by oste taliane for the years 2020 and 2021 n particular, the burden of the universal postal service for these years has been quantified at €585 and €480 million respectively he Authority also established that the universal service charge for the years 2020 and 2021 is inequitable and that, for the same years, unlike what was established in previous years, the appropriate proceedings will be launched to evaluate the addition to the Compensation Fund referred to in article 10 of Legislative Decree no 261/1999
• (ii) On 1 July 2021, AGCom Resolution 199/21/CO was published, concluding the procedure to verify the net cost of the universal postal service incurred by oste taliane for the years 2017, 2018 and 2019 n particular, the burden of the universal postal service for these years has been quantified at €354 5, €334 5 and €175 million respectively For the 2019 financial year, although the quantified charge (€175 million) is lower than the authorised offsets (€262 million), the charge for the provision of the universal postal service over the entire period (i e , the previous 2016-2019 ervice Contract) is in any case higher than the offsets authorised by the uropean Commission he Authority also established that the universal service charge for the years 2017, 2018 and 2019 is inequitable and that, for the same years, in continuity with what was established in previous years, the Compensation Fund referred to in article 10 of Legislative Decree no 261/1999 is not established On 22 eptember 2021, oste taliane appealed the aforementioned resolution at the Lazio Regional Administrative Court (still pending)
• (iii) AGCom Resolution 214/19/CO regarding "Assessment of the net cost of the universal postal service for 2015 and 2016" was published on 2 July 2019 n addition to acknowledging that the cost is unfair, the Resolution quantified the cost of providing the Universal ostal ervice in 2015 and 2016, respectively, as €389 million and €356 million, compared with compensation of €329 million and €262 million provided for in the Contratto di rogramma AGCom did not establish a Compensation Fund for 2015 and 2016, so it has not been possible to recover the difference between compensation provided by the state and the costs quantified by AGCom On 2 October 2019, oste taliane appealed the aforementioned resolution at the Lazio Regional Administrative Court (still pending)
• (iv) AGCom Resolution 298/17/CO regarding "Assessment of the net cost of the universal postal service for 2013 and 2014" was published on 6 eptember 2017 n addition to acknowledging that the cost is unfair, the Resolution quantified the cost of providing the Universal ostal ervice in 2013 and 2014, respectively, as €393 million and €409 million, compared with compensation of €343 million and €336 million provided for in the Contratto di rogramma he Compensation Fund was also not established for the years 2013 and 2014 On 6 ovember 2017, oste taliane appealed the aforementioned resolution at the Lazio Regional Administrative Court (still pending)
• (v) AGCom Resolution 412/14/CO regarding "Assessment of the net cost of the universal postal service for 2011 and 2012" was published on 31 July 2014 n addition to acknowledging that the cost is unfair, the Resolution quantified the cost of providing the Universal ostal ervice in 2011 and 2012, respectively, as €381 million and €327 million for fees originally recognised by oste taliane for €357 and €350 million respectively he Authority also ruled that no Compensation Fund was established for the year 2011 On 13 ovember 2014, oste taliane appealed the aforementioned measure before the Lazio Regional Administrative Court he Regional Administrative Court, in ruling no 11416 published on 5 eptember 2022, partially upheld the appeal on the verification of the responsibility for the

³¹⁵ This method defines the cost incurred as the difference between the net operating cost incurred by a designated universal service provider when subject to universal service obligations and the net operating cost without such obligations.

years 2011-2012 with respect to the non-activation of the compensation fund for the year 2011 oste, AGCom and A C A ( talian Association of nternational Air Couriers) lodged separate appeals with the Council of tate against the Regional Administrative Court ruling he appeal judgements were joined By judgement no 9021 of 17 October 2023, the Council of tate annulled the first instance judgement for breach of cross-examination oste taliane promptly resumed the case before the Lazio Regional Administrative Court, supplementing the cross-examination by public notice he setting of the hearing is pending

With Resolution 313/21/CO , notified on 21 October 2021, the AGCom closed the sanctioning proceedings, initiated with notice of objection 6/21/DSP, by imposing a fine of €0 9 million for breach of universal service continuity obligations (art 3, paragraph 1, 5 lett b) and 8 lett d) of Legislative Decree no 261/1999) and of information obligations, in relation to the closures of 239 ost Offices over the Christmas period (on aturday 28 December 2019 and aturday 4 January 2020) even though they had been communicated of it in advance he Authority accepted the request, on a subordinate basis, for the application of cumulation, imposing a penalty in a reduced amount compared to the one that had been indicated for the reduced payment (€3 28 million) ayment of the penalty was made on 10 ovember 2021 he Authority's Resolution was appealed by the Company to the Regional Administrative Court he setting of the hearing is pending

On 18 April 2023, with otice of Objection no 6/23/DSP, the AGCom initiated sanctioning proceedings against oste taliane for non-compliance with the quality objectives on products included in the Universal ostal ervice for the year 2022, identifying five objections With Determination no 26/23/D , notified on 7 July 2023, the Authority dismissed the sanctioning proceeding as the Company availed itself of the benefit of Article 16 of Law no 689 of 24 ovember 1981, with reduced payment of the sanctions for all the disputes

On 20 June 2023, with notice of objection no 10/23/DSP, the AGCom initiated a sanctioning procedure against oste taliane, contesting seven alleged violations of the obligations relating to the service of notification of judicial documents, following a report by some users and an inspection by the Authority at some of the Company's premises oste taliane did not avail itself of the benefit of the reduced payment of the penalty, and, on 3 August 2023, a defence memorandum was formalised to point out that the disputed cases do not constitute breaches of universal service obligations subject to sanctions by the Authority, but mere inefficiencies that would give rise to the right of users to obtain any reimbursement Resolution no 10/24/CO , published on 18 January 2024, concluded the proceedings with an administrative fine against oste taliane of €0 022 million, which was paid on 5 February 2024

On 10 October 2023, with notice of objection no 11/23/DSP, the AGCom notified oste taliane of an objection for noncompliance with the order to restore the opening hours of post offices that had been closed or rescheduled during the pandemic emergency he Company submitted its defence and availed itself of the benefit of the reduced payment By Determination no 28/23/D , notified on 14 December 2023, the sanction proceedings were closed

Bank of taly

he Bank of taly, from 14 March 2022 to 15 July 2022, conducted an inspection at oste taliane pA - Banco osta RFC, on profitability and the business model, governance and control systems, interest rate risk management methods including related internal modelling, new tax credit business and associated risks On 30 ovember 2022, the report containing a number of findings and a "partially unfavourable" assessment was delivered to oste taliane oste taliane, by the established deadline and after discussion at the Board of Directors' meeting of 25 January 2023, notified the Bank of taly of its considerations and planned improvements; for the only finding in respect of which a sanctioning procedure was initiated, the Company sent counter-claims in support of the correctness of its actions After examining the counter-claims and evaluating the actions already implemented or planned by the Company, the Bank of taly approved the filing he improvement plan communicated to the Bank of taly is currently being implemented and is monitored on a monthly basis by Banco osta's control functions

On 20 July 2022, the Authority sent a notice to oste taliane pA - Banco osta RFC and oste ay concerning the manner in which the funds received by oste ay in respect of the issuance of electronic money should be managed t should be noted that the upervisory rovisions for M s provide that such funding may be deposited with a bank authorised to operate in taly, invested in qualified debt securities or particular units of harmonised mutual funds ince the creation of oste ay, these sums are deposited in a postal current account (protection account) and contribute to the funds from private customers of Bancoposta RFC, which are invested in euro area government bonds n this regard, the Authority initiated discussions with Banco osta and oste ay in 2021, in view of the fact that Banco osta was not deemed to be an entity that could be assimilated to the concept of "credit institution" under the relevant uropean legislation n the face of a proposed alternative approach, aimed at equating the deposit with Banco osta of the sums collected by oste ay with a direct investment in qualified debt securities, in the aforementioned communication the Authority asked Banco osta and oste ay for further observations, aimed at identifying an operational solution that would allow full alignment with the relevant regulatory provisions Upon completion of the further investigations requested, a transitional solution was identified, also on the basis of the discussions with the Authority his solution was represented to the Bank of taly in a communication sent jointly by Banco osta and oste ay on 29 March 2023 Consistent with this solution, a draft of the revolving pledge agreement was prepared and sent to the Bank of taly on 4 August 2023, supported also by the opinion of an external law firm

VA - stituto per la Vigilanza sulle Assicurazioni (the insurance regulator)

With reference to the notice of objection served by VA on 23 February 2023 for the alleged breach of section 183(1)(a) of the rivate nsurance Code arising from the alleged late payment of insurance benefits beyond the contractual deadline and to the subsequent " roposal for the imposition of administrative sanctions" served on 24 August 2023 for the amount of €0 03 million equal to the minimum amount, the settlement is confirmed following the receipt of the sanctioning measure and the payment of the sanction imposed therein and confirmed, made within the terms envisaged by the reference legislation

n addition, on 20 July 2023, Poste Vita was served, by the " anctions and ettlements ervice" of the VA , a further notice of objection for the alleged breach of article 183, paragraph 1, letter "a" of the rivate nsurance Code With regard to this case, on 24 January 2024, the " roposal for the imposition of administrative sanctions" was sent to oste Vita, which provides for the application of the minimum administrative sanction of €0 03 million We are therefore awaiting the reasoned decision by which the sanction proceedings in question will be settled

With regard to the VA inspection of Poste Vita concerning the governance, management and control profiles of investments and financial risks concluded on 7 May 2021, discussions continued with VA during the period and on 25 July 2023, the decision-making phase was concluded by the upervisory Authority, which notified the Company of the imposition of a fine of €1 8 million he sanction was imposed as a result of violations of the applicable regulations found by VA with particular reference to:

• alleged failures in the governance and management of financial risks as well as in the protection of policyholders' rights for investments made through so-called "multi-asset" funds;
• alleged deficiencies in the process of defining the Risk Appetite Framework

Garante per la protezione dei dati personali (the Data rotection Authority)

n August 2023, the continuous monitoring units detected anomalies on the systems of the subsidiary ostel pA and identified an event of compromise of some Domain Controllers, made possible through the use of various malware and the activation of a malicious code used to encrypt computers (ransomware) he execution of the ransomware, claimed by a cyber criminal group, disrupted the operation of some servers and several workstations spread across the country Based on the provisions of the "Data Breach Management" procedure governing the activities of detecting, notifying and communicating personal data breaches in accordance with the provisions of U Regulation 2016/679 (GD R), the GD R

eam was convened and, within the time-frame set out in Articles 33 and 34 of the GD R, the Company notified the rivacy Guarantor and all relevant stakeholders

n 15 December 2023, the Garante per la rotezione dei Dati ersonali (G D ), considering that the elements acquired in the course of the investigative investigations, initiated following the notification of the Data Breach, may constitute one or more of the violations indicated in Article 83 of the GD R, notified the Company of the commencement of the proceedings for the adoption of the measures and sanctions referred to in said Article 83, pointing out that ostel could be susceptible to the sanctions provided for therein

On 12 January 2024, the Company filed its defence briefs and was heard at a hearing on 31 January 2024

At present, the conclusion of the proceedings, which could lead to the imposition of an administrative fine, is pending he outcome of the proceedings was taken into account when determining the provisions for risks at 31 December 2023

Other proceedings

Federconsumatori, with a writ of summons dated 14 May 2021, initiated a class action against oste taliane pursuant to article 140-bis of the Consumer Code, before the Court of Rome he value of the dispute to date is approximately €8 5 thousand

By the summons in question, Federconsumatori contests that the capitalisation of interest on 30-year interest-bearing postal certificates (marked with the "Q" series, issued by Cassa Depositi e restiti from 1986 to 1995, pursuant to Ministerial Decree 13 June 1986 by the Minister of reasury, which were subsequently transferred to the Ministry of conomy and Finance, pursuant to the M F Decree of 5 December 2003) is carried out annually net of withholding tax (now substitute tax), rather than gross, with the effect of recognising to savers a lower return than that allegedly due

On 27 July 2021, oste taliane appeared before the court, objecting, on a preliminary basis, to the inadmissibility of the class action, on a number of preliminary grounds, as well as to the fact that the plaintiffs' and potential members' claims were time-barred, and contested the merits of the proposed claim

he Court of Rome, in an order dated 11 January 2022, held that the request submitted by Federconsumatori was manifestly unfounded, recognising, inter alia, the lack of passive legitimacy of oste taliane Federconsumatori appealed the order of the Court of Rome, and the Court of Appeal set the hearing for closing arguments for 22 May 2024

As reported in ote A9 - Other receivables and assets, on 5 July 2023, the decision of the Court of Cassation in the case pursuant to Law Decree no 201/2011 was published, in which the most relevant grounds of oste taliane's appeal were upheld concerning the starting date of the interest accrued on the R credit resulting from the non-deduction of labour costs for RA purposes As a result of this ruling, the case will have to be resumed before the ax Court of econd nstance to settle the amount of interest actually due to the Group he judgement concerning Law Decree no 185/2008 is currently pending before the upreme Court of Cassation

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

10. MATERIAL NON-RECURRING EVENTS AND/OR TRANSACTIONS

n 2023, the oste taliane Group did not note any material effects of non-recurring events and transactions315F ³¹⁶ entered into by the Group, pursuant to CO OB communication no D M/6064293 of 28 July 2006

11. EXCEPTIONAL AND/OR UNUSUAL TRANSACTIONS

Under the definition provided by the CO OB ruling of 28 July 2006, the oste taliane Group did not conduct any exceptional and/or unusual transactions316F ³¹⁷ in 2023

12. MATERIAL EVENTS AFTER THE END OF THE REPORTING PERIOD

he events that occurred after the reporting date are described below For a complete description of these events, please refer to paragraph 3 1 - Principal corporate actions

• MLK Fresh

On 31 January 2024, through the establishment of the ewCo named "MLK Fresh S.r.l." ("MLK Fresh"), the partnership in the Fresh Food sector between MLK Deliveries p A and Mazzocco S.r.l. ("Mazzocco"), an taltrans Group company operating as a national refrigerated courier, was formalised

MLK Fresh, 70% owned by MLK and 30% by Mazzocco, will be the vehicle through which the parties will offer advanced delivery services in taly dedicated to the fresh food segment in the B2C e-commerce and/or scheduled deliveries market

• Address Software

On 24 January 2024, ostel sold its entire stake in Address oftware r l to oste taliane p A his transaction was in preparation for the start of the merger by incorporation of Address oftware r l into oste taliane p A , which will become effective in 2024

• N&TS Group

On 28 February 2024, oste ay signed an agreement to acquire 20% of & GROU etworks & ransactional ystems Group p A (" & GROU "), a leading talian company in software solutions for electronic payments he transaction, whose closing is subject to the fulfilment of conditions precedent, aims to enhance oste ay's technological expertise in order to support its expansion strategy in the digital payments market

• Poste Logistics

On 4 March 2024, oste Logistics p A (" ewCo") was established, whose share capital is wholly owned by oste taliane p A ewCo will focus on integrated logistics activities for the talian ostal Group, benefiting from the business unit of DA xpress Courier p A (" DA") concerning the integrated logistics business, through a partial demerger transaction he transaction - whose partial demerger project has already been approved in March by the Boards of Directors of the companies involved in the transaction and will also be subject to resolution by the relevant extraordinary shareholders' meetings - will be formalised by the second half of 2024

³¹⁶ Events and transactions are defined as such when their occurrence is non-recurring, being transactions or events that do not recur frequently in the ordinary course of business.

³¹⁷ Such transactions are defined as transactions that due to their significance/materiality, the nature of the counterparties, the purpose of the transaction, the manner of determining the transfer price and timing of the transaction may give rise to doubts over the correctness and/or completeness of the disclosures in the financial statements, over a conflict of interest, safeguards for the Company's financial position and protections for non-controlling shareholders.

13. ADDITIONAL INFORMATION

his note provides information applicable to both the oste taliane Group's consolidated financial statements and oste taliane pA's separate financial statements, including qualitative and quantitative disclosures on matters required, to a residual degree, by accounting standards, not specifically dealt with in the previous notes

OFFSETTING FINANCIAL ASSETS AND LIABILITIES

n compliance with FR 7 – Financial instruments: Disclosures, this section provides details of financial assets and liabilities that are subject to master netting agreements or similar arrangements, regardless of whether the financial instruments have been offset in keeping with paragraph 42 of A 32317F 318

n particular, the disclosures in question concern the following positions relating to oste taliane pA at 31 December 2023:

• derivative assets and liabilities and related collateral, represented both by cash and government securities;
• repurchase agreements and reverse repurchase agreements and the related collateral, represented both by cash and government securities

he positions in question are subject to standard bilateral netting agreements that allow, in the event of the counterparty's default, the offsetting of debit and credit positions covered by DA contracts and repurchase agreements, for which GMRA agreements have been entered into

Repurchase agreement positions managed through the Central Counterparty that meet the requirements of A 32 are shown net of offsetting

n order to present the tables in compliance with the requirements of FR 7, repurchase agreements are shown at amortised cost, whilst derivative transactions are shown at fair value; the relevant financial guarantees are measured at fair value

					Related amounts not subject to offset in the financial statements
Technical forms (€m)	Gross amount of	Amount of financial liabilities	Financial assets,	Collateral	Financial assets/(liabilities), net (f=c-d-e)
	financial assets (*) offset in financial (a) statements (b)		net (c=a-b)	Financial instruments (d)
FY 2023
Financial assets attributable to BancoPosta RFC
Derivatives	4,257	-	4,257	1,068	2,812	377
Repurchase agreements	4,106	2,337	1,769	1,769	-	-
Total at 31 December 2023	8,363	2,337	6,026	2,837	2,812	377
FY 2022
Financial assets attributable to BancoPosta RFC
Derivatives	6,110	-	6,110	1,197	4,822	91
Repurchase agreements	4,575	3,217	1,358	1,358	-	-
Total at 31 December 2022	10,685	3,217	7,468	2,555	4,822	91

Financial assets offset in the financial statements or subject to framework master netting agreements or similar arrangements

³¹⁸ Paragraph 42 of IAS 32 provides that "A financial asset and a financial liability can be offset and the net amount presented in the statement of financial position when, and only when, an entity:

⁽a) currently has a legally enforceable right to set off the recognised amounts; and

⁽b) intends either to settle on a net basis or to realise the asset and settle the liability simultaneously".

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Technical forms	Gross amount of financial	Amount of financial assets offset in	Financial liabilities,	Collateral	Financial
(€m)	liabilities(*) financial statements (a) (b)		net (c=a-b)	Financial instruments (d)	Cash deposits provided/(received) as collateral (e)	assets/(liabilities), net (f=c-d-e)
FY 2023
Financial liabilities attributable to BancoPosta RFC
Derivatives	1,136	-	1,136	1,053	83	-
Repurchase agreements	10,554	2,337	8,217	7,762	455	-
Total at 31 December 2023	11,690	2,337	9,353	8,815	538	-
FY 2022
Financial liabilities attributable to BancoPosta RFC
Derivatives	971	-	971	947	24	-
Repurchase agreements	13,342	3,217	10,125	9,236	889	-
Total at 31 December 2022	14,313	3,217	11,096	10,183	913	-

* The gross amount of financial assets and liabilities includes the financial instruments subject to offsetting and those subject to master netting agreements or similar arrangements, regardless of whether the financial instruments have been offset.

TRANSFERS OF FINANCIAL ASSETS THAT ARE NOT DERECOGNISED

Financial liabilities offset in the financial statements or subject to master netting agreements or similar arrangements

n accordance with FR 7 - Financial Instruments: Disclosures, this section provides additional information on the transfer of financial assets that are not derecognised (continuing involvement)

At 31 December 2023, these assets concern reverse repurchase agreements entered into with primary financial intermediaries and entirely attributable to the arent Company

Transfers of financial assets that are not derecognised

Description (€m)	Notes		31 December 2023		31 December 2022
		Nominal value	Carrying amount	Fair value	Nominal value	Carrying amount	Fair value
Financial assets attributable to BancoPosta RFC [A6]
Financial assets at amortised cost		6,679	6,822	6,291	6,442	6,766	5,586
Financial assets at FVTOCI		4,386	4,093	4,093	6,628	6,246	6,246
Financial liabilities attributable to BancoPosta RFC[B6]
Financial liabilities arising from repos		(10,559)	(10,553)	(10,332)	(13,486)	(13,342)	(12,993)
Total		506	362	52	(416)	(330)	(1,161)

FINANCIAL ASSETS SUBJECT TO ENCUMBRANCES

his paragraph provides information on the nominal value and carrying amount of financial assets delivered to counterparties as collateral for repurchase agreements and interest rate swaps, and financial assets delivered to the Bank of taly as collateral for intraday credit granted to the arent Company and as collateral for A Direct Debits

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Financial assets subject to encumbrances
Description		31 December 2023	31 December 2022
(€m)	Nominal value	Carrying amount	Nominal value	Carrying amount
Financial assets attributable to BancoPosta RFC
Financial assets at amortised cost
Loans and receivables	1,224	1,224	2,457	2,457
Receivables used as collateral provided by CSAs	129	129	31	31
Receivables used as collateral provided by GMRAs	1,006	1,006	1,447	1,447
Receivables in the form of guarantee deposits (Clearing House margin requirements)	89	89	978	978
Receivables in the form of guarantee deposits (OTC Clearing House)	-	-	1	1
Fixed income instruments Securities involved in repurchase agreements Securities used as collateral provided by CSAs and GMRAs Securities used as collateral for intraday credit from the Bank of Italy and for Sepa Direct Debits Financial assets at FVTOCI Fixed income securities	7,523 6,679 - 844 6,336	7,761 6,822 - 939 6,026	7,034 6,442 245 347 8,899	7,478 6,766 247 465 8,469
Securities involved in repurchase agreements	4,386	4,093	6,628	6,246
Securities used as collateral provided by CSAs and GMRAs	-	-	-	-
Securities used as collateral for intraday credit from the Bank of Italy and for Sepa Direct Debits	1,950	1,933	2,271	2,223
Financial assets outside ring-fence
Financial assets at amortised cost
Loans and receivables Receivables used as collateral provided by CSAs Receivables used as collateral provided by GMRAs	- - -	- - -	- - -	- - -
Financial assets at FVTOCI
Fixed income securities Securities involved in repurchase agreements	- -	- -	- -	- -
Total financial assets subject to encumbrances	15,083	15,011	18,390	18,404

At 31 December 2023, the arent Company has received financial assets as collateral for reversal repos, having a notional value of €3,874 million and a fair value of €4,110 million

n addition, securities with a nominal value of €2,999 million are committed for repurchase agreements entered into with Cassa Compensazione e Garanzia in December 2023 and settled in early January 2024

EXPOSURE TO SOVEREIGN DEBT

With regard to financial assets, as required by Communication D M/11070007 of 28 July 2011, implementing Document 2011/266 published by the uropean ecurities and Markets Authority ( MA) and later amendments, the Group's exposure to sovereign debt at 31 December 2023 is shown in the table below

Poste Italiane Group - Exposure to sovereign debt securities

Description	31.12.2023			31.12.2022
(€m)	Nominal value	Carrying amount	Market Value	Nominal value	Carrying amount	Market Value
Italy	133,977	128,548	126,362	138,017	126,397	122,321
Financial assets at amortised cost	29,757	29,475	27,289	27,306	26,921	22,845
Financial assets at FV OC	104,207	99,060	99,060	110,698	99,463	99,463
Financial assets at FV L	13	13	13	13	14	14
Austria Financial assets at amortised cost Financial assets at FV OC Financial assets at FV L	1,023 - 1,023 -	1,003 - 1,003 -	1,003 - 1,003 -	215 - 215 -	170 - 170 -	170 - 170 -
Belgium	4,545	3,968	3,968	2,876	2,123	2,123
Financial assets at amortised cost	13	12	12	-	-	-
Financial assets at FV OC Financial assets at FV L	4,532 -	3,956 -	3,956 -	2,876 -	2,123 -	2,123 -
Finland	1,026	1,002	1,002	138	122	122

Total	155,489	146,278	144,092	152,426	136,444	132,367
Financial assets at FV L	0	0	0	-	-	-
Financial assets at amortised cost Financial assets at FV OC	- 202	- 181	- 181	- 203	- 169	- 169
Other countries	202	181	181	203	169	169
Financial assets at FV L	-	-	-	-	-	-
Financial assets at FV OC	111	100	100	50	38	38
USA Financial assets at amortised cost	111 -	100 -	100 -	50 -	38 -	38 -
Financial assets at FV L	-	-	-	-	-	-
Financial assets at amortised cost Financial assets at FV OC	3 4,042	3 2,604	3 2,604	3 3,857	3 2,258	3 2,258
Spain	4,045	2,607	2,606	3,860	2,261	2,261
Financial assets at FV L	-	-	-	-	-	-
Financial assets at amortised cost Financial assets at FV OC	- 458	- 374	- 374	- 416	- 295	- 295
Portugal	458	374	374	416	295	295
Financial assets at FV L	-	-	-	-	-	-
Financial assets at amortised cost Financial assets at FV OC	- 328	- 335	- 335	- 295	- 293	- 293
Holland	328	335	335	295	293	293
Financial assets at FV L	-	-	-	-	-	-
Financial assets at FV OC	811	741	741	455	372	372
Ireland Financial assets at amortised cost	811 -	741 -	741 -	455 -	372 -	372 -
Financial assets at FV OC Financial assets at FV L	1,183 -	1,133 -	1,133 -	851 -	792 -	792 -
Financial assets at amortised cost	-	-	-	-	-	-
Germany	1,183	1,133	1,133	851	792	792
Financial assets at FV L	-	-	-	-	-	-
Financial assets at FV OC	7,780	6,287	6,287	5,050	3,411	3,411
Financial assets at amortised cost	-	-	-	-	-	-
France	7,780	6,287	6,287	5,050	3,411	3,411
Financial assets at FV OC Financial assets at FV L	1,026 -	1,002 -	1,002 -	138 -	122 -	122 -
Financial assets at amortised cost	-	-	-	-	-	-
Poste Italiane Group					oste taliane's Financial tatements at 31 December 2023
2023 Annual Report

Below are details for oste taliane

Credit risk - Exposure to sovereign debt

	31 December 2023			31 December 2022
Description (€m)	Nominal value	Carrying amount	Market Value	Nominal value	Carrying amount	Market Value
Financial assets attributable to BancoPosta RFC
Italy	62,736	60,578	58,573	61,670	57,997	54,214
Financial assets at amortised cost	27,877	27,509	25,504	25,304	24,836	21,053
Financial assets at FVOCI	34,859	33,069	33,069	36,366	33,161	33,161
Financial assets outside ring-fence
Italy	110	99	99	110	91	91
Financial assets at FVOCI	110	99	99	110	91	91
Total	62,846	60,677	58,672	61,780	58,088	54,305

UNCONSOLIDATED STRUCTURED ENTITIES

n order to make investments as consistent as possible with the risk-return profiles of the policies issued, ensuring management flexibility and efficiency, in certain cases oste Vita pA has purchased over 50% of the assets managed by certain investment funds n these cases, tests have been performed in keeping with FR to determine the existence of control he results of the tests on such funds suggest that the company does not exercise any control within the meaning of FR 10 – Consolidated Financial Statements However, these Funds fall within the definition of unconsolidated structured entities: a structured entity is an entity designed in such a way as not to make voting rights the key factor in determining control over it, as in the case where voting rights refer solely to administrative activities and the relevant operations are managed on the basis of contractual arrangements

Nature of the involvement in the unconsolidated structured entity

					(€m)
				NAV
ISIN - Name	Nature of entity	Activity of the Fund	% investment	Ref. date	Amount
LU1379774190 - MUL FL X D V R F D D -CM	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	5,621
LU1407712014 - MUL FL X - Global Optimal Multi Asset Fund	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	4,657
LU1407712287 - MUL FL X - trategic nsurance Distribution	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	4,493
LU1407711800 - MUL FL X - Dynamic Multi Asset Fund	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	4,044
LU1193254122 - MFX - GLOBAL FU D - A GLOBAL FU D ( MCO MUL A )	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	3,804
LU1808839242 - MUL FL X OLYM UR MA-CM	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	840
LU1500341240 - MUL FL X-L O MAL M/A-CM	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	825
LU1808838863 - MUL FL X OLYM UM O MA-CM	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	563
LU1500341752 - MUL FL X DY AM C L M/A-CM	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	539
QU0006738052 - rima U rivate Debt Opportunity Fund	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/09/202 3	507
0004937691 - R MA H DG LA UM GROW H 00BK1KD 71	Fund of Hedge Funds falling within the scope of Directive 2011/61/ U	ursuit of absolute returns, with low long-term volatility and correlation with the main financial markets	100	30/11/2023	432
QU0006744795 - rima uropean Direct Lending 1 Fund	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/09/202 3	456
0005174450 - D AMO D UROZO FU D OFF C UB	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in "core" and "core plus" real estate assets for working (office) use, located in the urozone and euro-denominated	100	30/09/202 3	399

EMARKET SDIR
CERTIFIED

Poste Italiane Group				oste taliane's Financial tatements at 31 December 2023
LU2051218035 - OLYM UM V RUM FU D	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	437
0005247819 - Diamond Core	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in real estate assets, real property rights, including those resulting from property lease translational arrangements, concessions and other similar rights in accordance with the legislation from time to time in effect	100	30/06/202 3	283
LU1500341166 - MUL FL X OLYM UM DY AM C MUL A FU D	Open-end harmonised UC	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	29/12/202 3	293
0005386666 - Fund i3-Dante segment Convivio	talian-registered, closed-end multi-segment alternative real estate investment fund	nvestment in "core" and "core plus" income real estate located in the central areas of the main talian cities, starting with Rome and Milan	100	30/06/202 3	267
QU0006746865 - ALC rima uropean rivate Credit Feeder Fund	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/09/202 3	269
0005215113 - CBR D AMO D FU D	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in real estate assets, real estate rights, including those deriving from real estate lease contracts, in any case carried out without particular geographical location constraints but in any case in taly, may be used for the following purposes: logistics, retirement homes, residential, hotel, mixed-use and office or commercial use	100	30/09/202 3	157
QU0006745081 - rima Real state urope Fund	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/09/202 3	329
0005212193 - D AMO D AL A RO R	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in real estate assets, real property rights, including those resulting from property lease translational arrangements, concessions and other similar rights in accordance with the legislation from time to time in effect	100	30/06/202 3	159
QU0006742476 - R MA GLOBAL QU Y AR R FU D	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/09/202 3	204
QU0006738854 - rima Credit Opportunity Fund	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds and equities)	100	30/11/2023	130
0005210593 - D AMO D O H R C OR ALY	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in real estate assets, real property rights, including those resulting from property lease arrangements, participating interests in property companies and the professional management and development of the fund's assets	100	30/06/202 3	108
0005210387 - D AMO D UROZO R A L RO R Y FU D	Closed-end real estate alternative investment fund under talian law falling within the scope of Directive 2011/61/ U	nvestment in "core" and "core plus" real estate assets for retail use, located in the urozone and euro denominated	100	30/06/202 3	90
LU1581282842 - ndaco CAV F - ndaco C FC U Loan	Open-ended fund falling within the scope of Directive 2011/61/ U	nvestment in a mix of asset classes (corporate bonds, government bonds, loans and equities)	100	30/11/2023	86

LU1081427665 - HO G RO R Y FU D 2

Closed-end fund within the scope of Directive 2011/61/ U Fund 2: master fund which invests primarily in commercial properties and, marginally, in office buildings and alternative sectors t does not invest in property debt

nvests in the hopping roperty

⁶⁵ 30/09/202

3

54

ature of the involvement in the unconsolidated structured entity

he purpose of oste Vita's investment in the funds is to diversify its portfolio of financial instruments intended to cover Class products ( eparately Managed Accounts), with the objective of mitigating the concentration of investments in talian government securities he entities primarily regard open-end harmonised funds that invest in a mix of assets, such as corporate bonds, government bonds and equities, and closed-end real estate funds that invest in property and property rights Certain details are provided below

Risk nature

					(€m)
ISIN - Name	Classification	Investment carrying amount	Maximum loss exposure	Difference between carrying amount and maximum exposure	Method to determine maximum loss exposure
LU1379774190 - MUL FL X-D V R F D D -CM	FV L	5,621	553	5,068	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1407712014 - MUL FL X - Global Optimal Multi Asset Fund	FV L	4,657	401	4,255	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1407712287 - MUL FL X - trategic nsurance Distribution	FV L	4,493	341	4,152	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1407711800 - MUL FL X - Dynamic Multi Asset Fund	FV L	4,044	368	3,676	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1193254122 - MFX - GLOBAL FU D - A GLOBAL FU D ( MCO MUL A )	FV L	3,804	211	3,593	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1808839242 - MUL FL X-OLYM UR MA-CM	FV L	840	65	776	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1500341240 - MUL FL X-L O MAL M/A-CM	FV L	825	87	737	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1808838863 - MUL FL X-OLYM UM O MA-CM	FV L	563	47	516	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU1500341752 - MUL FL X-DY AM C L M/A-CM	FV L	539	48	491	Annual VaR at 99 5% over 5 years and a half-life of 1 year
LU2051218035 - OLYM UM V RUM FU D	FV L	437	69	367	Annual VaR at 99 5% over 5 years and a half-life of 1 year
0004937691 - R MA H DG LA UM GROW H 00BK1KD 71	FV L	432	66	365	Annual VaR at 99 5% over 5 years and a half-life of 1 year
0005174450 - D AMO D UROZO FU D OFF C UB	FV L	399	162	237	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets

EMARKET SDIR
CERTIFIED

QU0006744795 - rima uropean Direct Lending 1 Fund	FV L	456	53	403	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
QU0006738052 - rima U rivate Debt Opportunity Fund	FV L	507	55	452	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
LU1500341166 - MUL FL X-OLYM UM DY AM C-MUL A FU D	FV L	293	27	266	Annual VaR at 99 5% over 5 years and a half-life of 1 year
0005247819 - Diamond Core	FV L	283	93	189	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
0005386666 - Fund i3-Dante segment Convivio	FV L	267	67	200	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
QU0006746865 - ALC rima uropean rivate Credit Feeder Fund	FV L	269	30	239	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
QU0006745081 - rima Real state urope Fund	FV L	329	120	209	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
0005212193 - D AMO D AL A RO R	FV L	159	55	104	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
0005215113 - CBR D AMO D FU D	FV L	157	51	106	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
QU0006738854 - rima Credit Opportunity Fund	FV L	130	10	120	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
QU0006742476 - R MA GLOBAL QU Y AR R FU D	FV L	204	114	90	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
0005210593 - D AMO D O H R C OR ALY	FV L	108	39	69	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
0005210387 - D AMO D UROZO R A L RO R Y FU D	FV L	90	35	56	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
LU1581282842 - ndaco CAV F - ndaco C FC U Loan	FV L	86	23	63	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets
LU1081427665 - HO G RO R Y FU D 2	FV L	35	24	12	VaR at 99 5% over a time horizon of 1 year calculated from sensitivity markets

Risk nature

he company's investments in the funds in question are reported at fair value (mainly level 2 of the fair value hierarchy), on the basis of the AV reported from time to time by the fund manager hese investments were made in connection with

(€m)

Class policies and, as such, any changes in fair value are passed on to the policyholder under the shadow accounting mechanism

	(€m)
Asset class	Fair Value
Financial instruments
Corporate bonds	14,586
Government bonds	9,053
Other investments net of liabilities	3,527
quity instruments	1,528
Cash	1,274
Derivative financial instruments
waps	(1)
Futures	2
Forwards	59
Total	30,028

Market traded on and UCITS	Fair Value

Germany (Frankfurt, Berlin, Munich)	4,331
Dublin	1
ew York	2,019
race	3,818
London	2,380
aris	342
uronext	4,068
okyo	747
ingapore	770
uromtf	472
Luxembourg	106
urotlx	334
Hong Kong	248
Others	9,591
rovisions	801
Total	30,028

SHARE-BASED PAYMENT ARRANGEMENTS

LONG-TERM INCENTIVE SCHEME: PERFORMANCE SHARE PLAN

oste taliane Group

he hareholders' Meeting of oste taliane pA held on 28 May 2019 approved the information circular for the " quitybased incentive plans – erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the first Cycle 2019-2021 and the second cycle 2020-2022

he hareholders' Meeting of oste taliane pA held on 28 May 2021 approved the information circular for the " quitybased incentive plans – 2021-2023 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2021-2023

he hareholders' Meeting of oste taliane pA held on 27 May 2022 approved the information circular for the " quitybased incentive plans – 2022-2024 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2022-2024

he hareholders' Meeting of oste taliane pA held on 8 May 2023 approved the information circular for the " quitybased incentive plans – 2023-2025 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2023-2025

hese incentive systems, constructed in line with market practices, aim to strengthen the link between the variable component of remuneration and the Group's medium to long-term strategy, in line with the budget and the goals in the trategic lan, over a multi-year period

Description of the lans

he " erformance hare L s", as described in the relevant nformation Circulars, provide for the assignment of Rights to the oste taliane's ordinary shares he number of Rights to be granted to Beneficiaries is subject to the achievement of erformance argets over a three-year period, following confirmation of achievement of the Hurdle and the Qualifying Conditions (the latter for Banco osta Beneficiaries, hereinafter "B Beneficiaries" including then General Manager) lans are developed over a three-year time horizon and Actions are awarded if performance targets are achieved he key characteristics of the lans are described below

Beneficiaries

he Beneficiaries are: oste taliane's Chief xecutive Officer, in his role as General Manager, certain managers within the oste taliane Group, including key management personnel, and some resources of Banco osta RFC

lans' terms and conditions

he erformance argets, common to all Beneficiaries, to which the vesting of the Rights and, therefore, the allocation of the hares is conditioned, are highlighted below:

• a profitability indicator identified in the Group's three-year cumulative B used to recognise the continuity and sustainability of profitability results over the long term;
• an indicator of shareholder value creation, based on the relative otal hareholder Return, used to measure performance based on the value created for oste taliane's shareholders compared with the F M B index318F 319

³¹⁹ The objective linked to the "relative Total Shareholder Return" (rTSR) includes a "negative threshold" provision: if Poste Italiane's TSR is negative, despite being higher than the TSR registered by the index, the number of vested Rights (linked to rTSR) is reduced to the minimum threshold of 50%.

For the 2021-2023, 2022-2024 and 2023-2025 erformance hare L s, the following K s are added to the two targets indicated above for the G component:

• 2021-2023 erformance hare L : sustainable finance, target linked to the inclusion of an G component in oste Vita investment products by 2023 n particular, the indicator is calculated by comparing the number of products offered with G components to the total number of products offered;
• 2022-2024 erformance hare L : equal gender representation in succession plans, an objective linked to strengthening the presence of women in managerial succession plans, to help increase the presence of women in positions of greater responsibility in the oste taliane Group pecifically, the indicator is calculated by comparing the number of succession applications occupied by women to the total number of applications;
• 2023-2025 erformance hare L : Green ransition, a target related to the reduction of tCO² emissions; this target is intended to measure the reduction of the Group's total emissions (tCO2e) over the 2023-2025 time horizon Creating value for the country, an objective that takes into account the progress of the construction sites related to the " olis roject" n particular, the indicator is calculated as the ratio of the number of initiatives launched to the total number of physically feasible initiatives

Vesting of the Rights and the therefore the awarding of the hares is subject to achievement of the erformance Hurdle, designed to ensure sustainability of the lan at Group level he erformance Hurdle corresponds with achievement of a certain target for the Group's cumulative B over a three-year period at the end of each erformance eriod n addition, in the case of the General Manager (and Chief xecutive Officer) and Banco osta RFC's Beneficiaries, vesting of the hantom tocks is also subject to achievement of Qualifying Conditions, designed to ensure the stability of Banco osta RFC's capital and liquidity position, as follows:

• ndicator of capital adequacy, (C 1) at the end of the period;
• ndicator of short-term liquidity, (LCR) at the end of the period;
• RORAC risk-adjusted earnings at the end of the period

he hares relating to the 2019-2021 and 2020-2022 erformance hare L s will be awarded by the end of the year following the end of the erformance eriod as follows:

• for B Beneficiaries (including the General Manager) for 40% up-front and for the remaining 60% in two equal portions, deferred respectively for 2 and 4 years from the end of the erformance eriod A further Retention eriod of one year will be applied to both the up-front and deferred portions;
• for the Other Beneficiaries, the granting of oste taliane's hares is entirely up front at the end of a three-year erformance eriod, with 60% of the hares subject to a further two-year Lock-up eriod

For B Beneficiaries (including the General Manager) in relation to the 2021-2023, 2022-2024 and 2023-2025 erformance hare L s, the following disbursement method is envisaged: 40% upfront and 60% in five deferred annual instalments over a five-year period (the first three equal to 10% of the total rights accrued and the next two equal to 15% of the total rights accrued) A further Retention eriod of one year will be applied to both the up-front and deferred portions;

n addition, for B Beneficiaries (including the General Manager), the deferred hares will be awarded following the verification of the existence of capital adequacy, short-term liquidity levels and risk-adjusted profitability of Banco osta RFC

For more details on the operating mechanisms of the incentive plans, please refer to the nformation Circular and/or the Report on the Remuneration olicy, in force from time to time, approved by the hareholders' Meeting

LONG-TERM INCENTIVE SCHEME: DELIVER 2022 LTIP

n 2023, in light of the regulatory updates that have taken place and with a view to maintaining constant alignment between the interests of management and those of the shareholders, the hareholders' Meeting held on 8 May 2023 resolved to pay a portion equal to 55% of the bonus accrued for Deliver L MR s B Beneficiaries at the end of the erformance eriod (31 December 2022) in Rights to receive ordinary shares of oste taliane, subject to Retention eriods

ince this is a Conversion, no new allocations are envisaged with respect to the objectives of the plan assigned in 2018 and based on a five-year time horizon (2018-2022)

Vesting of the Rights and the therefore the awarding of the hares is subject to achievement of the erformance Hurdle, designed to ensure sustainability of the lan at Group level he erformance Hurdle is represented by achievement of a certain target for the Group's cumulative B over a five-year period at the end of the erformance eriod (31 December 2022) n addition, delivery of the hares is also subject to achievement of Qualifying Conditions, designed to ensure the stability of Banco osta RFC's capital and liquidity position, as follows:

• ndicator of capital adequacy, (C 1) at the end of the period;
• ndicator of short-term liquidity, (LCR) at the end of the period;
• RORAC risk-adjusted earnings at the end of the period

he Conversion made provision for the payment of 45% of the up-front accrued remium in cash in 2023, as opposed to the 75% originally envisaged he remaining 55%, originally planned in cash form, will be paid in Rights to receive hares subject to Retention eriods of 1 and 2 years

Delivery of the hares at the end of each Retention eriod will take place subject to verification of the risk tolerance level of conditions linked - in addition to capital adequacy and liquidity, originally envisaged - also to risk-adjusted profitability with reference to Banco osta RFC, as well as oste taliane's inclusion in at least two internationally recognised sustainability indices

For more details on the operating mechanisms of the incentive plans, please refer to the nformation Circular and/or the Report on the Remuneration olicy, in force from time to time, approved by the hareholders' Meeting

Determination of fair value and effects on profit or loss

he valuations of these plans were mainly based on the conclusions reached by actuaries outside the Group he unit fair value of each Right at the valuation date is equal to its nominal value at the grant date (determined on the basis of stock market prices), discounted by the expected dividend rate and the risk-free interest rate and updated taking into account the best estimate of service conditions and performance (non-market based performance conditions)

												(€m)
	Number of beneficiaries		Units (No. of Phantom Stocks / Rights to receive shares)			Fair value at grant date				Operating Cost	IFRS 2 Reserve / Liabilities
Incentive plans		Number of Units	Of which under retention period	General Manager		BP Beneficiaries		Other Beneficiaries
				Grant date	Fair Value	Grant date	Fair Value	Grant date	Fair Value
Deliver 3 years	15	8,763	8,763	n a	n a	29 May 2018	€10 21	29 May 2018	€10 21	0 02	0 09	-
Deliver 5 years	2	156,068	-	29 May 2018	€8 43	n/a	n/a	29 May 2018	€8 43	1 32	1 32	-
19-21 erformance hare L	111	471,860	-	28 May 2019	€5 02	7 October 2019	€7 01	7 October 2019	€7 88	0 08	3 61	(0 3)
20-22 erformance hare L	118	469,025	34,824	5 May 2020	€6 05	12 ovember 2020	€4 89	12 ovember 2020	€5 41	(0 95)	2 52	(1 8)

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023
21-23 erformance	163	1,228,540	-	28 May 2021	€8 19	28 May 2021	€8 27	28 May 2021	€9 07	3 80	10 97	-
hare L 22-24 erformance hare L	203	1,070,012	-	27 May 2022	€4 69	27 May 2022	€4 65	27 May 2022	€5 66	2 02	3 94	-
23-25 erformance hare L	218	1,670,289	-	8 May 2023	€4 46	8 May 2023	€4 47	8 May 2023	€5 62	3 04	3 04	-
Total										9.3	25.5	(2.1)

oste taliane pA

he effects on profit or loss of the above " erformance hare" and " hantom tock" Long- erm ncentive chemes at 31 December 2023 for oste taliane pA are shown below

												(€m)
	Number of beneficiaries		Units (No. of Phantom Stocks / Rights to Fair value at grant date receive shares)							Operating Cost	IFRS 2 Reserve / Liabilities	Payments / Countervalue delivery of treasury shares
Incentive plans		Number of Units	Of which under retention period	General Manager		BP Beneficiaries		Other Beneficiaries
				Grant date	Fair Value	Grant date	Fair Value	Grant date	Fair Value
Deliver 3 years	15	8,763	8,763	n a	n a	29 May 2018	€10 21	29 May 2018	€10 21	0 02	0 09	-
Deliver 5 years	2	156,068	-	29 May 2018	€8 43	n/a	n/a	29 May 2018	€8 43	1 32	1 32	-
19-21 erformance hare L	105	454,391	-	28 May 2019	€5 02	7 October 2019	€7 01	7 October 2019	€7 88	0 08	3 51	(0 33)
20-22 erformance hare L	109	447,845	34,824	5 May 2020	€6 05	12 ovember 2020	€4 89	12 ovember 2020	€5 41	(0 90)	2 46	(1 73)
21-23 erformance hare L	151	1,169,847	-	28 May 2021	€8 19	28 May 2021	€8 27	28 May 2021	€9 07	3 62	10 44	-
22-24 erformance hare L	186	998,529	-	27 May 2022	€4 69	27 May 2022	€4 65	27 May 2022	€5 66	1 89	3 67	-
23-25 erformance hare L	200	1,605,134	-	8 May 2023	€4 46	8 May 2023	€4 47	8 May 2023	€5 62	2 92	2 92	-
Total										8.9	24.4	(2.1)

LONG-TERM INCENTIVE SCHEMES: STOCK OPTIONS

he MLK delivery long-term incentive scheme, which was approved by the subsidiary's Board of Directors on 10 December 2020, provides for the grant, free of charge, of a maximum number of stock options that entitle holders to subscribe for class Z shares of MLK delivery, i e , shares issued to service the lan without dividend and voting rights he lan has a total term of five years and will end with the grant of all tock Options On 9 July 2023, a liquidation event provided for in the "MLK O 2020 Regulations" and the "MLK hareholders' Agreement" occurred, resulting in the termination of the MLK Deliveries long-term incentive scheme approved by the Board of Directors on 10 December 2020 At the expiry of the validity of the lan (total duration of three years), oste taliane p A exercised its call options on the remaining 30% of MLK's share capital and, by drag-along, on the portion related to the new shares issued in connection with the lan he event described resulted in the exercise of 2,001 shares at a strike price of €64 29 and a share value at the time the option was exercised of €195 81 per share

At 31 December 2023, there were no additional stock option incentive plans in place for MLK Deliveries rl

SHORT-TERM INCENTIVE SCHEMES: MBO

On 27 May 2014, the Bank of taly issued specific upervisory rovisions for Banco osta ( art V, Chapter , "Banco osta" including in Circular 285 of 17 December 2013 " rudential supervisory standards for banks") which, in taking into account Banco osta's and oste taliane's specific organisational and operational aspects, has extended application of the

prudential standards for banks to include Banco osta his includes the standards relating to remuneration and incentive policies ( art , itle V, Chapter 2 "Remuneration and incentive policies and practices" in the above Circular 285) hese standards, applicable only to the arent Company oste taliane pA, provide that a part of the bonuses paid to Banco osta RFC's Risk akers may be awarded in the form of financial instruments over a multi-year timeframe With regard to the management incentive schemes adopted for Banco osta RFC MBO for 2018, where the incentive was above a certain materiality threshold, the MBO management incentive scheme envisages the award of 50% of the incentive

in the form of phantom stocks, representing the value of oste taliane's shares, and application of the following deferral mechanisms:

• 60% of the award to be deferred for a 5-year period on a pro-rata basis, in the case of Material Risk akers who are beneficiaries of both the short-term incentive scheme and long-term incentive scheme, " hantom tock L ";
• 40% of the award to be deferred for a 3-year period on a pro-rata basis for the remaining Material Risk akers

he most recent short-term management incentive schemes (MBO 2019, MBO 2020, MBO 2021, MBO 2022 and MBO 2023), provide, where the incentive exceeds a materiality threshold, for the payment of a portion of the bonus accrued in the form of oste taliane pA's hares and the application of deferral mechanisms:

• 60% of the incentive over 5 years pro-rata, for the General Manager and the head of the Banco osta function;
• 40% over 5 years pro-rata for the enior Management Beneficiaries;
• 40% over 3 years pro-rata319F ³²⁰ for the Other Beneficiaries

he allocation of hantom tocks (MBO 2018) and Rights to receive hares (MBO 2019, 2020, 2021, 2022 and 2023) is subject to the existence of a erformance Hurdle (Group rofitability: B ) and Qualifying Conditions as follows:

• Capital adequacy: C 1, risk tolerance level approved in the Risk Appetite Framework (RAF);
• hort-term liquidity: LCR, risk tolerance level approved in the Risk Appetite Framework (RAF)
• Risk-adjusted earnings (RORAC) threshold level approved in the Risk Appetite Framework (RAF) for MBO 2023 only

he General Manager is also expected to apply an additional Qualifying Condition, in addition to those set out above, linked to the olvency Ratio of the oste Vita nsurance Group

hares allocated in the form of hantom tock or hares are subject to a Retention eriod for both up-front and deferred shares

ayment of the deferred portion will take place each year, provided that Banco osta RFC's minimum regulatory capital, liquidity and risk-adjusted earnings requirements have been met (solely for MBO 2023) he effects on profit or loss and on equity are recognised in the period in which the instruments vest

Determination of fair value and effects on profit or loss

he valuations of these plans were mainly based on the conclusions reached by actuaries outside the Group

	Number of beneficiaries		Units (No. of Phantom Stocks / Rights to receive shares)		Fair value at grant date	Operating Cost	IFRS 2 Reserve / Liabilities	(€m) Payments / Countervalue delivery of treasury shares
Incentive plans		Number of Units	Of which under retention period		General Manager BP Beneficiaries		Other Beneficiaries
				Grant date	Fair Value	Grant date	Fair Value	Grant date	Fair Value
MBO 2018	10	15,081	-	19 March 2019	€10 2	19 March 2019	€10 2	19 March 2019	€10 2	0 03	0 1	(0 2)
MBO 2019	5	8,594	5,519	5 March 2020	€7 5	5 March 2020	€7 51 - €7 62	5 March 2020	€7 51	0 01	0 1	(0 1)
MBO 2020	11	9,159	4,230	24 March 2021	€8 4	24 March 2021	€8 36 - €8 83	24 March 2021	€8 36 - €8 83	(0 01)	0 1	(0 04)
MBO 2021	15	51,151	17,467	22 March 2022	€8 3	22 March 2022	€8 25 - €8 77	22 March 2022	€8 25 - €8 77	0 01	0 4	(0 4)

³²⁰ For the MBO 2021, MBO 2022 and MBO 2023 only, the pro-rata years are 4, although for the fourth year only a cash payment is provided.

2023 Annual Report Poste Italiane Group								oste taliane's Financial tatements at 31 December 2023
MBO 2022 MBO 2023320F 321	13 12	103,934 109,392	46,620 -	28 March 2023 19 March 2023	€7 7 €7 8	28 March 2023 19 March 2023	€7 7 - €8 31 €7 79 - €8 21	28 March 2023 19 March 2023	€7 7 - €8 31 €7 79 - €8 21	0 21 0 87	0 8 0 9	- -
Total										1.1	2.4	(0.7)

SEVERANCE PAYMENTS ON TERMINATION OF EMPLOYMENT

everance payments to Banco osta RFC Risk Takers on early termination are paid in accordance with the same procedures applied to short-term variable remuneration (MBO 2017) as regards deferral, payment in financial instruments and verification of the minimum regulatory capital and liquidity requirements for Banco osta RFC During the course of 2023, the payment of the last tranche of this plan was completed with a total disbursement of approximately €70,000

³²¹ MBO 23 estimated on the basis of the best available information, pending the actual finalisation of the system, in order to identify the cost of the service received.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

SCOPE OF CONSOLIDATION AND HIGHLIGHTS OF INVESTMENTS

Scope of consolidation (€k)

Name	Registered office	Currenc y	Share capital	Parent Company	% ownership	Total % Group
PARENT COMPANY:
oste taliane pA	Rome ( taly)	uro	1,306,110
SUBSIDIARIES CONSOLIDATED ON A LINE-BY-LINE BASIS:
Agile LAB rl (*)	Milan ( taly)	uro	54	oste taliane pA	70 00%	70 00%
Banco osta Fondi pA GR	Rome ( taly)	uro	12,000	oste taliane pA	100 00%	100 00%
Bridge echnologies rl (*)	Milan ( taly)	uro	20	lurima	100 00%	70 00%
Consorzio Logistica acchi cpA	Rome ( taly)	uro	516	oste taliane pA DA xpress Courier pA oste Air Cargo rl ostel pA oste Assicura pA exive etwork rl	51 00% 19 00% 5 00% 15 00% 5 00% 5 00%	100 00%
Consorzio ervizi cpA	Rome ( taly)	uro	120	oste taliane pA oste ay pA	51 00% 49 00%	100 00%
Consorzio osteMotori	Rome ( taly)	uro	120	oste taliane pA ostel pA	58 12% 22 63%	80 75%
uropa Gestioni mmobiliari pA	Rome ( taly)	uro	103,200	oste taliane pA oste Vita pA	55 00% 45 00%	100 00%
L Holding pA	Milan ( taly)	uro	2,582	oste ay pA	100 00%	100 00%
L ay pA	Milan ( taly)	uro	56,600	oste ay pA	100 00%	100 00%
Logos rl (*)	Milan ( taly)	uro	10	lurima	100 00%	70 00%
MLK Deliveries pA	Rome ( taly)	uro	335	oste taliane pA	100 00%	100 00%
et Holding pA (*)	Rome ( taly)	uro	100	oste Vita pA	60 00%	60 00%
et nsurance pA (*)	Rome ( taly)	uro	17,624	et Holding pA	97 84%	58 70%
et nsurance Life pA (*)	Rome ( taly)	uro	15,000	et nsurance pA	100 00%	58 70%
exive etwork rl	Milan ( taly)	uro	50	oste taliane pA	100 00%	100 00%
exive carl	Milan ( taly)	uro	28	oste taliane pA	85 89%	85 89%
atentiVia oste cpA	Rome ( taly)	uro	120	oste taliane pA ostel pA	69 65% 17 21%	86 86%
oste Air Cargo rl	Rome ( taly)	uro	1,000	oste taliane pA	100 00%	100 00%
lurima pA (*)	Milan ( taly)	uro	8,544	oste Welfare ervizi rl	70 00%	70 00%
oste Assicura pA (*)	Rome ( taly)	uro	25,000	oste Vita pA	100 00%	100 00%
oste nsurance Broker rl	Rome ( taly)	uro	600	oste Assicura pA	100 00%	100 00%
oste ay pA	Rome ( taly)	uro	7,561	oste taliane pA	100 00%	100 00%

2023 Annual Report Poste Italiane Group				oste taliane's Financial tatements at 31 December 2023
oste Vita pA (*)	Rome ( taly)	uro	1,216,608	oste taliane pA	100 00%	100 00%
oste Welfare ervizi rl	Rome ( taly)	uro	16	oste taliane pA	100 00%	100 00%
ostel pA	Rome ( taly)	uro	20,400	oste taliane pA	100 00%	100 00%
DA xpress Courier pA	Rome ( taly)	uro	5,000	oste taliane pA	100 00%	100 00%
engi xpress Limited (**)	Hong Kong (China)	uro	541	oste taliane pA	40 00% (***)	40 00% (***)
engi xpress Guangzhou Limited (**)	Guangzhou (China)	C Y	5,000	engi xpress Limited	100 00%	40 00%
ourcesense pA (*)	Rome ( taly)	uro	880	oste taliane pA	70 00%	70 00%
ourcesense Digital rl (*)	Rome ( taly)	uro	32	ourcesense pA	100 00%	70 00%
ourcesense echnology rl (*)	Rome ( taly)	uro	40	ourcesense pA	100 00%	70 00%
ourcesense Limited (**)	London (UK)	GB	-	ourcesense pA	100 00%	70 00%
ourcesense latforms r l	Rome ( taly)	uro	50	ourcesense pA	100 00%	70 00%
COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD:
Subsidiaries:
Address oftware rl	Rome ( taly)	uro	10	ostel pA	100 00%	100 00%
ndabox rl	Rome ( taly)	uro	50	MLK Deliveries pA	100 00%	100 00%
Kipoint pA	Rome ( taly)	uro	500	DA xpress Courier pA	100 00%	100 00%
Associates:
Anima Holding pA	Milan ( taly)	uro	7,292	oste taliane pA	11 60%	11 60%
Conio nc	an Francisco (U A)	U D	13,356	oste taliane pA	16 29%	16 29%
Conio rl	Milan ( taly)	uro	115	Conio nc	100 00%	16 29%
urizon Capital Real Asset GR p A	Milan ( taly)	uro	4,167	oste Vita pA Banco osta Fondi pA GR	20 00% 20 00%	40% (****)
Financit pA	Rome ( taly)	uro	14,950	oste taliane pA	40 00%	40 00%
taliaCamp rl	Rome ( taly)	uro	155	oste taliane pA	19 40%	19 40%
Replica M pA	Milan ( taly)	uro	10,500	oste taliane pA	45 00%	45 00%
sennder talia rl	Milan ( taly)	uro	50	oste taliane pA	25 00%	25 00%

(*) he figures shown for these companies were prepared in accordance with FR and, as such, may vary from those contained in the respective financial reports, which were prepared in accordance with the talian Civil Code and talian GAA

(**) he figures shown for these companies were prepared in accordance with FR and, as such, may vary from those contained in the Annual Report of the company drafted in compliance with Local GAA

(***) oste taliane pA holds 51% of the voting capital

(****) osta Vita and Banco osta Fondi jointly hold 24 5% of the voting capital

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Name (Registered office)	Nature of investme nt	Carrying amount	% share	Assets	Liabilitie s	Equity	Revenu e from sales and service s		Net profit / (loss) for the year
Address oftware rl (Rome)	ubsidiary	1,109	100 00%	1,701	591	1,110	855		105
Anima Holding pA (Milan) (a)	Associate	218,734	11 60%	2,328,67 5	935,022	1,393,653	733,975	(* )	96,390
Conio nc ( an Francisco) (b)	Associate	555	16 29%	13,353	3,506	9,847	-		(327)
urizon Capital Real Asset GR p A	Associate	4,220	40 00%	16,286	8,683	7,603	7,552	(* )	443
Financit pA (Rome)	Associate	34,712	40 00%	1,860,59 7	1,792,28 3	68,314	70,773	(* )	15,554
ndabox rl (Rome)	ubsidiary	508	100 00%	665	240	425	668		89
taliaCamp rl (Roma) (c)	Associate	562	19 40%	6,538	3,645	2,893	3,891		173
Kipoint pA (Rome)	ubsidiary	2,511	100 00%	6,645	4,134	2,511	8,124		505
Replica M pA (Milan)	Associate	9,329	45 00%	43,786	34,366	9,420	6,852	(* )	235
sennder talia rl (Milan) (d)	Associate	293,987	25 00%	83,082	71,755	11,327	245,639		6,208
Other DA xpress Courier associate	Associate s	-

a. Data derived from the latest consolidated interim accounts for the period ended 30 09 2023 approved by the company's board of directors

b. Data from the company's latest balance sheet as at 30 06 2023, the balance sheet value also includes the valuation of the company Conio r l whollyowned by Conio nc

c. Figures taken from the company's latest financial statements approved by the Board at 31 12 2022

d. he company was classified as an investment in associates following the completion of the transaction in June 2023; for further details on the transaction, please refer to the section Main changes to the scope of consolidation - ote 2 8 Basis of consolidation

(*) he amount includes commissions, interest income and other similar income

DISCLOSURE PURSUANT TO LAW 124/2017

he information required by art 1, paragraphs 125 and 129 of Law 124 of 4 August 2017 is provided below

he information is provided in thousands of euros and on a cash basis, indicating the Group company that received and/or disbursed the grant n addition, given the numerous interpretative doubts, the following information is provided on the basis of the best interpretation of the legislation available to date, in the light of the guidance provided by Assonime in Circular 5 of 22 February 2019

			(€k)
Group companies	Grantor/beneficiary	Purpose	Amount disbursed
Grants received
oste taliane	M M	Research and Development rojects	605
oste taliane	M M	Mobility Management and Home Work ravel lans	262
et nsurance pa	Ania ervizi e Formazione rl	ext to eople roject	142
et nsurance pa	Ania ervizi e Formazione rl	More ext to eople roject	90
et nsurance pa	Ania ervizi e Formazione rl	Grow ogether lan	167
Total			1,266
Grants disbursed
oste taliane	Fondazione ntercultura Onlus	Donation	120
oste taliane	uropean University nstitute	Donation	100

2023 Annual Report Poste Italiane Group		oste taliane's Financial tatements at 31 December 2023
oste taliane	Comunità di an atrignano	Donation	30
oste taliane	Fondazione Comunità Domenico ardini Onlus	Donation	24
oste taliane	Fondazione Dynamo Camp Onlus	Donation	20
oste taliane	Weco - ocial nterprise	Donation	20
oste taliane	Aila Onlus Foundation	Donation	20
oste taliane	M O Association	Donation	15
oste taliane	arent roject aps Association	Donation	15
oste taliane	Fondazione Bambino Gesù Onlus	Donation	10
oste taliane	Associazione Andrea udisco Onlus	Donation	10
oste taliane	Corri la Vita Onlus Association	Donation
oste taliane	Fondazione Angeli del Bello	Donation	10
			10
Total			404

POSTAL SAVINGS

he following table provides a breakdown of postal savings deposits collected by the arent Company in the name of and on behalf of Cassa Depositi e restiti, by category he amounts are inclusive of accrued, unpaid interest

Postal Savings

Description (€m)	31.12.2023	31.12.2022
ost office savings books	90,844	90,850
nterest-bearing ostal Certificates Cassa Depositi e restiti Ministry of the conomy and Finance - M F	236,732 194,321 42,411	237,888 192,644 45,244
Total	327,576	328,738

ASSETS UNDER MANAGEMENT

Assets under management by Banco osta Fondi pA GR, measured at fair value using information available on the last working day of the year, amount to €15,641 million at 31 December 2023 (€11,927 million at 31 December 2022) Of the total amount, about €7,590 million (or about 49% of total assets under management) refer to funds whose investment policies include environmental, social and governance factors ( G)

COMMITMENTS

he Group's purchase commitments break down as follows

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Commitments

Description (€m)	31.12.2023	31.12.2022
Lease arrangements	217	26
Contracts to purchase property, plant and equipment	124	89
Contracts to purchase intangible assets	20	12
Total	360	127

oste taliane pA's purchase commitments break down as follows

Commitments

Description (€m)	31.12.2023	related to Group companies	31.12.2022	related to Group companies
Lease arrangements	214	-	17	-
Contracts to purchase property, plant and equipment	124	-	90	1
Contracts to purchase intangible assets	20	-	12	-
Total	358	-	119	1

At 31 December 2023, the item Lease contracts includes commitments that do not fall under FR 16 - Leases.

n addition, at 31 December 2023, oste ay takes over:

• purchases of electricity on forward markets for €170 million;
• purchases of natural gas on futures markets for €120 million

GUARANTEES

Unsecured guarantees issued by the Group and oste taliane pA are as follows:

Guarantees
Description (€m)	31.12.2023	31.12.2022
Sureties and other guarantees issued:
by banks/insurance companies in the interests of Group companies in favour of third parties	623	698
by the Group in its own interests in favour of third parties	299	61
Total	922	759

Guarantees
Description (€m)		31.12.2023	31.12.2022
Sureties and other guarantees issued:
by banks in the interests of Poste Italiane SpA in favour of third parties by Poste Italiane SpA in the interests of subsidiaries in favour of third parties letters of patronage issued by Poste Italiane SpA in the interests of subsidiaries		320 205 95	373 215 61
Total		620	649
THIRD-PARTY ASSETS
n addition to what is detailed in the table below for the arent Company, third-party assets of the Group include material for the Covid emergency within the scope of the order with the Civil Defence for about €1 3 billion, held in the warehouses of the subsidiary DA xpress Courier p A Third-party assets
Description (€m)	31.12.2023		31.12.2022
Bonds subscribed by customers held at third-party banks Other assets		6,033 248	3,431 344
Total		6,281	3,775
companies ASSETS IN THE PROCESS OF ALLOCATION At 31 December 2023, the arent Company has paid a total of €97 million in claims on behalf of the Ministry of Justice, for which, under the agreement between oste taliane pA and the M F, it has already been reimbursed by the reasury, whilst awaiting acknowledgement of the relevant account receivable from the Ministry of Justice
FEES PAID TO INDEPENDENT AUDITORS PURSUANT TO ART. 149 DUODECIES OF THE CONSOB'S REGULATIONS FOR ISSUERS
322 payable to the he following table shows fees321F arent Company's auditor, Deloitte & ouche, and companies within its network for 2023, presented in accordance with art 149 duodecies of the CO	OB's Regulations for ssuers:
322 Auditing services are expensed as incurred and reported in the audited financial statements. Any attestation services relating to accounts prior to the reporting date are recognised on an accruals basis, following engagement of the auditor, in the year in which the services are rendered, applying the percentage of completion method.

THIRD-PARTY ASSETS

Third-party assets
Description (€m)	31.12.2023	31.12.2022
Bonds subscribed by customers held at third-party banks Other assets	6,033 248	3,431 344
Total	6,281	3,775

ASSETS IN THE PROCESS OF ALLOCATION

FEES PAID TO INDEPENDENT AUDITORS PURSUANT TO ART. 149 DUODECIES OF THE CONSOB'S REGULATIONS FOR ISSUERS

³²² Auditing services are expensed as incurred and reported in the audited financial statements. Any attestation services relating to accounts prior to the reporting date are recognised on an accruals basis, following engagement of

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Disclosure of fees paid to ndependent Auditors (€k)

Type of services	Entity providing the service	2023 fees
Poste Italiane SpA
Audit	Deloitte & ouche p A	1,339
Audit	Deloitte & ouche network	-
Attestation services	Deloitte & ouche p A	589
Attestation services	Deloitte & ouche network	-
Other services	Deloitte & ouche p A	17
Other services	Deloitte & ouche network	45
Subsidiaries of Poste Italiane SpA
Audit (*)	Deloitte & ouche p A	2,275
Audit	Deloitte & ouche network	47
Attestation services	Deloitte & ouche p A	820
Attestation services	Deloitte & ouche network	-
Other services	Deloitte & ouche p A	-
Other services	Deloitte & ouche network	-
Total		5,132

(*) includes the costs of auditing the funds managed by B F GR charged to savers for a fee of €193 thousand

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

14. BANCOPOSTA RFC SEPARATE REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL STATEMENTS859
STATEMENT OF FINANCIAL POSITION 859
STATEMENT OF PROFIT OR LOSS 861
STATEMENT OF COMPREHENSIVE INCOME 862
STATEMENT OF CHANGES IN EQUITY 863
STATEMENT OF CASH FLOWS 864
NOTES 866
PART A – ACCOUNTING POLICIES 866
PART B – INFORMATION ON THE STATEMENT OF FINANCIAL POSITION 887
PART C – INFORMATION ON PROFIT OR LOSS 912
PART D – COMPREHENSIVE INCOME 923
PART E – INFORMATION ON RISKS AND RELATED HEDGING POLICIES 923
PART F – INFORMATION ON EQUITY 965
PART G – BUSINESS COMBINATIONS 969
PART H – RELATED PARTY TRANSACTIONS 969
PART I – SHARE-BASED PAYMENT ARRANGEMENTS 972
PART L – OPERATING SEGMENTS 975
PART M – INFORMATION ON LEASES 975

(figures in €)

FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

	Assets	31 December 2023	31 December 2022
10.	Cash and cash equivalents	4,731,804,421	5,874,003,873
20.	Financial assets measured at fair value through profit or loss	26,196,661	39,768,823
	a) financial assets held for trading	-	-
	b) financial assets designated at fair value	-	-
	c) other financial assets mandatorily measured at fair value	26,196,661	39,768,823
30.	Financial assets measured at fair value through other comprehensive income	33,069,070,448	33,161,038,504
40.	Financial assets measured at amortised cost	44,561,934,123	46,576,120,582
	a) due from banks	976,196,905	1,499,841,103
	b) due from customers	43,585,737,218	45,076,279,479
50.	Hedging derivatives	4,256,825,277	6,109,461,206
60.	Adjustments for changes in hedged financial assets portfolio (+/-)	-	-
70.	Investments	-	-
80.	Property, plant and equipment	-	-
90.	Intangible assets	-	-
	of which:
	- goodwill	-	-
100.	Tax assets	642,226,681	1,157,311,589
	a) current	-	-
	b) deferred	642,226,681	1,157,311,589
110.	Non-current assets and disposal groups held for sale	-	-
120.	Other assets	10,856,890,504	11,520,235,265
	Total assets	98,144,948,115	104,437,939,842

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

STATEMENT OF FINANCIAL POSITION

			(figures in €)
	Liabilities and equity	31 December 2023	31 December 2022
10.	Financial liabilities measured at amortised cost	90,963,258,845	98,944,279,492
	a) due to banks	10,335,597,387	12,849,764,915
	b) due to customers	80,627,661,458	86,094,514,577
	c) debt securities in issue	-	-
20.	Financial liabilities held for trading	2,597,924	4,002,715
30.	Financial liabilities designated at fair value	-	-
40.	Hedging derivatives	1,135,604,715	970,662,525
50.	Adjustments for changes in hedged financial liabilities portfolio (+/-)	-	-
60.	Tax liabilities	266,193,083	225,575,165
	a) current	-	-
	b) deferred	266,193,083	225,575,165
70.	Liabilities associated with non-current assets held for sale and discontinued operations	-	-
80.	Other liabilities	2,832,777,755	2,789,296,794
90.	Employee termination benefits	2,083,064	1,982,574
100.	Provisions for risks and charges:	163,499,489	188,060,241
	a) commitment and guarantees given	-	-
	b) pensions and similar obligations	-	-
	c) other provisions for risks and charges	163,499,489	188,060,241
110.	Valuation reserves	(840,662,686)	(2,223,281,867)
120.	Redeemable shares	-	-
130.	Equity instruments	450,000,000	350,000,000
140.	Reserves	2,569,251,467	2,585,050,876
150.	Share premium reserve	-	-
160.	Share capital	-	-
170.	Treasury shares (-)	-	-
180.	Profit/(Loss) for the year (+/-)	600,344,459	602,311,327
	Total liabilities and equity	98,144,948,115	104,437,939,842

(figures in €)

STATEMENT OF PROFIT OR LOSS
-----------------------------

		FY	FY
	Items	2023	2022
10.	Interest and similar income	2,778,162,722	2,094,920,984
	of which: interest income calculated using the effective interest method	2,778,162,722	2,094,920,984
20.	Interest expense and similar charges	(587,060,606)	(172,077,432)
30.	Net interest income	2,191,102,116	1,922,843,552
40.	Fee income	3,669,506,800	3,453,985,229
50.	Fee expenses	(199,858,347)	(216,167,715)
60.	Net fee and commission income	3,469,648,453	3,237,817,514
70.	Dividends and similar income	246,104	327,077
80.	Profits/(Losses) on trading	(2,460,542)	(67,898,766)
90.	Profits/(Losses) on hedging	(1,155,168)	17,696,651
	100. Profits/(Losses) on disposal or repurchase of:	157,546,084	334,675,035
	a) financial assets measured at amortised cost	47,581,038	76,793,562
	b) financial assets measured at fair value through other comprehensive income	109,965,046	257,881,473
	c) financial liabilities	-	-
110.	Profits/(Losses) on other financial assets/liabilities measured at fair value through profit or loss	7,822,515	900,441
	a) financial assets and liabilities designated at fair value	-	-
	b) other financial assets mandatorily measured at fair value	7,822,515	900,441
	120. Net interest and other banking income	5,822,749,562	5,446,361,504
	130. Net losses/recoveries due to credit risk on:	(11,791,539)	(662,841)
	a) financial assets measured at amortised cost	(9,176,925)	3,446,818
	b) financial assets measured at fair value through other comprehensive income	(2,614,614)	(4,109,659)
	140. Profits/(Losses) from contract amendments without termination	-	-
	150. Net income from banking activities	5,810,958,023	5,445,698,663
	160. Administrative expenses:	(4,973,446,719)	(4,626,709,711)
	a) personnel expenses	(35,011,887)	(32,160,730)
	b) other administrative expenses	(4,938,434,832)	(4,594,548,981)
	170. Net provisions for risks and charges	8,120,394	21,106,716
	a) commitment and guarantees given	-	-
	b) other net provisions	8,120,394	21,106,716
	180. Net losses/recoveries on property, plant and equipment	-	-
	190. Net losses/recoveries on intangible assets	-	-
	200. Other operating income/(expense)	(11,871,045)	(6,367,366)
	210. Operating expenses	(4,977,197,370)	(4,611,970,361)
	220. Profits/(Losses) on investments	-	-
	230. Profits/(Losses) on fair value measurement of property, plant and equipment and intangible assets	-	-
	240. Impairment of goodwill	-	-
	250. Profits/(Losses) on disposal of investments	-	-
	260. Income/(Loss) before tax from continuing operations	833,760,653	833,728,302
	270. Taxes on income from continuing operations	(233,416,194)	(231,416,975)
	280. Income/(Loss) after tax from continuing operations	600,344,459	602,311,327
	290. Income/(Loss) after tax from discontinued operations	-	-
	300. Profit/(Loss) for the year	600,344,459	602,311,327

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

STATEMENT OF COMPREHENSIVE INCOME

	Items	FY 2023	FY 2022
10.	Profit/(Loss) for the year	600,344,459	602,311,327
	Other components of comprehensive income after taxes not reclassified to profit or loss
20.	Equity instruments measured at fair value through other comprehensive income	-	-
30.	Financial liabilities designated at fair value through profit or loss (changes in own credit rating)	-	-
40.	Hedges of equity instruments measured at fair value through other comprehensive income	-	-
50.	Property, plant and equipment	-	-
60.	Intangible assets	-	-
70.	Defined benefit plans	(34,010)	444,222
80.	Non-current assets and disposal groups held for sale	-	-
90.	Share of valuation reserve attributable to equity-accounted investments	-	-
	Other components of comprehensive income after taxes reclassified to profit or loss
	100. Hedges of foreign investments	-	-
	110. Foreign exchange differences	-	-
	120. Cash flow hedges	(165,814,699)	(93,507,071)
	130. Hedges (elements not designated)	-	-
	140. Financial assets (other than equity instruments) measured at fair value through other comprehensive income	1,548,467,890	(3,248,214,970)
	150. Non-current assets and disposal groups held for sale	-	-
	160. Share of valuation reserve attributable to equity-accounted investments	-	-
	170. Total other components of comprehensive income after taxes	1,382,619,181	(3,341,277,819)
	180. Comprehensive income (Items 10+170)	1,982,963,640	(2,738,966,492)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

STATEMENT OF CHANGES IN EQUITY

										(figures in €)
						31 December 2023
	Share capital			Reserves
	ordinary shares	other shares	Share premium reserve	retained earnings	other *	Valuation reserves	Equity instruments Treasury	shares	Profit/(Loss) for the year	Equity
Balance at 31.12.2022	-	-	-	1,373,317,573	1,211,733,303	(2,223,281,867)	350,000,000	-	602,311,327	1,314,080,336
Adjustments to opening balances	-	-	-	-	-	-	-	-	-	-
Balance at 01/01/2023	-	-	-	1,373,317,573	1,211,733,303	(2,223,281,867)	350,000,000	-	602,311,327	1,314,080,336
Attribution of retained earnings	-	-	-	-	-	-	-	-	(602,311,327)	(602,311,327)
Reserves	-	-	-	-	-	-	-	-	-	-
Dividends and other attributions	-	-	-	-	-	-	-	-	(602,311,327)	(602,311,327)
Changes during the year	-	-	-	(16,088,554)	289,145	1,382,619,181	100,000,000	-	600,344,459	2,067,164,231
Movements in reserves	-	-	-	(16,088,554)	289,145	-	-	-	-	(15,799,409)
Equity-related transactions	-	-	-	-	-	-	100,000,000	-	-	100,000,000
Issuance of new shares	-	-	-	-	-	-	-	-	-	-
Purchase of treasury shares	-	-	-	-	-	-	-	-	-	-
Payment of extraordinary dividends	-	-	-	-	-	-	-	-	-	-
Movements in equity instruments	-	-	-	-	-	-	100,000,000	-	-	100,000,000
Derivatives on own shares	-	-	-	-	-	-	-	-	-	-
Stock options	-	-	-	-	-	-	-	-	-	-
Comprehensive income for 2023	-	-	-	-	-	1,382,619,181	-	-	600,344,459	1,982,963,640
Equity at 31.12.2023	-	-	-	1,357,229,019	1,212,022,448	(840,662,686)	450,000,000	-	600,344,459	2,778,933,240

(*) his item represents the Reserve for Banco osta RFC of €1,210 million and also includes the Reserve for ncentive lans of €2 million

										(figures in €)
						31 December 2022
	Share capital		Share premium	Reserves					Profit/(Loss)
	ordinary shares	other shares	reserve	retained earnings	other **	Valuation reserves	Equity instruments Treasury	shares	for the year	Equity
Balance at 31.12.2021	-	-	-	1,185,795,168	1,211,029,300	1,117,995,952	350,000,000.00	-	508,354,242	4,373,174,662
Adjustments to opening balances	-	-	-	-	-	-	-	-	-	-
Balance at 01/01/2022	-	-	-	1,185,795,168	1,211,029,300	1,117,995,952	350,000,000	-	508,354,242	4,373,174,662
Attribution of retained earnings	-	-	-	200,000,000	-	-	-	-	(508,354,242)	(308,354,242)
Reserves	-	-	-	200,000,000	-	-	-	-	(200,000,000)	-
Dividends and other attributions	-	-	-	-	-	-	-	-	(308,354,242)	(308,354,242)
Changes during the year	-	-	-	(12,477,595)	704,003	(3,341,277,819)	-	-	602,311,327	(2,750,740,084)
Movements in reserves	-	-	-	(12,477,595)	704,003	-	-	-	-	(11,773,592)
Equity-related transactions	-	-	-	-	-	-	-	-	-	-
Issuance of new shares	-	-	-	-	-	-	-	-	-	-
Purchase of treasury shares	-	-	-	-	-	-	-	-	-	-
Payment of extraordinary dividends	-	-	-	-	-	-	-	-	-	-
Movements in equity instruments	-	-	-	-	-	-	-	-	-	-
Derivatives on own shares	-	-	-	-	-	-	-	-	-	-
Stock options	-	-	-	-	-	-	-	-	-	-
Comprehensive income for 2022	-	-	-	-	-	(3,341,277,819)	-	-	602,311,327	(2,738,966,492)
Equity at 31.12.2022	-	-	-	1,373,317,573	1,211,733,303	(2,223,281,867)	350,000,000	-	602,311,327	1,314,080,336

(**) his item represents the Reserve for Banco osta RFC of €1,210 million and also includes the Reserve for ncentive lans of €2 million

STATEMENT OF CASH FLOWS

Indirect method

		(figures in €)
	FY 2023	FY 2022
A. OPERATING ACTIVITIES
1. Cash flow from operations	590,858,395	154,644,935
- Profit/(Loss) for the year (+/-)	600,344,459	602,311,327
- gains/(losses) on financial assets held for trading and on assets and liabilities measured at fair value through profit or loss (-/+)	(5,846,347)	(430,198)
- gains/(losses) on hedging activities (-/+)	1,155,168	(17,696,651)
- net losses/recoveries due to credit risk (+/-)	11,791,539	662,841
- net losses/recoveries on property, plant and equipment and intangible assets (+/-)	-	-
- net provisions and other expenses/income (+/-)	(7,317,189)	(21,283,747)
- unpaid taxes and duties (+)	233,416,194	231,416,975
- net losses/recoveries on discontinued operations after tax (+/-)	-	-
- other adjustments (+/-)	(242,685,429)	(640,335,612)
2. Cash flow from/(used for) financial assets	5,626,281,280	(6,517,696,229)
- financial assets held for trading	-	-
- financial assets designated at fair value	-	-
- other financial assets mandatorily measured at fair value	21,394,678	3,021
- financial assets measured at fair value through other comprehensive income	2,437,010,779	(5,732,455,821)
- financial assets measured at amortised cost	2,288,735,933	1,668,352,514
- other assets	879,139,890	(2,453,595,943)
3. Cash flow from/(used for) financial liabilities	(6,836,434,580)	4,880,661,871
- financial liabilities measured at amortised cost	(8,118,300,345)	3,278,813,669
- financial liabilities held for trading	(4,002,716)	-
- financial liabilities designated at fair value	-	-
- other liabilities	1,285,868,481	1,601,848,202
Net cash flow from/(used for) operating activities	(619,294,905)	(1,482,389,423)
B. INVESTING ACTIVITIES
1. Cash flow from	-	-
- disposal of investments	-	-
- dividends received on investments	-	-
- disposal of property, plant and equipment	-	-
- disposal of intangible assets	-	-
- disposal of business divisions	-	-
2. Cash flow used for	-	-
- acquisition of investments	-	-
- acquisition of property, plant and equipment	-	-
- acquisition of intangible assets	-	-
- acquisition of business divisions	-	-
Net cash flow from/(used for) investing activities	-	-
C. FINANCING ACTIVITIES
- issuance/purchase of treasury shares	-	-
- issuance/purchase of equity instruments	100,000,000	-
- dividends and other payments	(623,491,361)	(324,777,317)
Net cash flow from/(used for) financing activities	(523,491,361)	(324,777,317)
NET CASH FLOW GENERATED/(USED) DURING THE YEAR	(1,142,786,266)	(1,807,166,740)

K Y: (+) from (-) used for

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Reconciliation

		(figures in €)
Items	FY 2023	FY 2022
Cash and cash equivalents at beginning of the year	5,874,003,873	7,680,326,129
Net cash flow generated/(used) during the year	(1,142,786,266)	(1,807,166,740)
Cash and cash equivalents: effect of exchange rate fluctuations	586,814	844,484
Cash and cash equivalents at end of the year	4,731,804,421	5,874,003,873

NOTES

PART A – ACCOUNTING POLICIES

A.1 – GENERAL

SECTION 1 – DECLARATION OF COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS

he eparate Report has been prepared in compliance with the nternational Financial Reporting tandards (" FR ") issued by the nternational Accounting tandards Board (" A B") hese were endorsed for application in the uropean Union by uropean Regulation ( C) 1606/2002 of 19 July 2002, as transposed into talian law by Legislative Decree 38 of 28 February 2005 governing the introduction of FR into talian legislation he term FR includes all the nternational Financial Reporting tandards, nternational Accounting tandards (" A ") and interpretations issued by the nternational Financial Reporting nterpretations Committee (" FR C", previously known as the tanding nterpretations Committee or " C"), adopted by the uropean Union and contained in the U Regulations in force at 31 December 2023, regarding which no derogations were made

Accounting standards and interpretations applicable from 1 January 2023 and those soon to be effective

he relevant information is provided in note 2 3 – New Accounting standards and interpretations and those soon to be effective – in the section – financial statements of Poste Italiane – of this Annual Report

SECTION 2 – BASIS OF PREPARATION

he eparate Report is prepared in accordance with the provisions of the eighth update of the Bank of taly Circular no 262 of 22 December 2005 "Bank Financial tatements: presentation formats and rules for preparation", as well as the Bank of taly Communication of 14 March 202332F ³²³ "Update of the provisions of Circular no 262 concerning the impact of COV D-19 and measures to support the economy", where applicable, and is prepared pursuant to the provisions of Article 2447-septies, paragraph 2, of the talian Civil Code On 27 May 2014, the Bank of taly issued specific upervisory tandards for Banco osta RFC (Circular 285/2013, art Four, ection 1) which, in taking into account the entity's specific organisational and operational aspects, has established prudential requirements that are substantially in line with those applicable to banks he tandards also govern the requirements regarding capital adequacy and risk containment he eparate Report relates to the year ended 31 December 2023, has been prepared in euros without decimal figures and consists of the statement of financial position, the statement of profit or loss, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the explanatory notes he statement of financial position, statement of profit or loss and statement of comprehensive income consists of numbered line items and lettered line subitems il balances have also been presented in the statement of financial position, statement of profit or loss and statement of comprehensive income for the sake of completeness he statement of cash flows has been prepared under the indirect method32F ³²⁴ All figures in the notes are stated in millions of euros; in addition, the tables with nil balances have not been included

³²³ The Communication repeals and replaces the previous one of 21 December 2021 "Update of the additions to the provisions of Circular no. 262 concerning the impacts of COVID-19 and measures to support the economy". ³²⁴ Under the indirect method, net cash from operating activities is determined by adjusting profit/(loss) for the year to reflect the impact of non-cash items, any deferment or provisions for previous or future operating inflows or outflows, and revenue or cost items linked to cash flows from investing or financing activities.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

he accounting policies and the recognition, measurement and classification criteria adopted in this Report are consistent with those used to prepare the eparate Report at 31 December 2022

he eparate Report forms an integral part of oste taliane pA's financial statements and has been prepared on a going concern basis in that Banco osta RFC's operations are certain to continue in the foreseeable future As a going concern, oste taliane Group companies, and consequently Bancoposta RFC, prepare their financial statements on a going concern basis, also taking account of the Group's economic - and financial outlook, as reflected in the 2024-2028 strategic plan, approved by oste taliane pA's Board of Directors on 19 March 2024

Banco osta's accounting policies, described in the eparate Report, are the same as those adopted by oste taliane pA are described in this art A and are relevant to all of Banco osta RFC's operations

SECTION 3 – EVENTS AFTER THE END OF THE REPORTING PERIOD

here were no material events after 31 December 2023

SECTION 4 – OTHER INFORMATION

4 1 R GM R LA O

Balances relating to transactions between Banco osta RFC and oste taliane pA (" ntersegment transactions") are recognised in the statement of financial position at 31 December 2023 as shown below:

€m		31.12.2023	of which intersegment	31.12.2022	of which intersegment
	Assets
10.	Cash and cash equivalents	4,732	-	5,874	-
20.	Financial assets measured at fair value through profit or loss	26	-	40	-
	a) financial assets held for trading	-	-	-	-
	b) financial assets designated at fair value	-	-	-	-
	c) other financial assets mandatorily measured at fair value	26	-	40	-
30.	Financial assets measured at fair value through other comprehensive income	33,069	-	33,161	-
40.	Financial assets measured at amortised cost	44,562	371	46,576	349
	a) due from banks	976	-	1,500	-
	b) due from customers	43,586	371	45,076	349
50.	Hedging derivatives	4,257	-	6,109	-
	100. Tax assets	642	-	1,157	-
	120. Other assets	10,857	39	11,521	44
	A Total assets	98,145	410	104,438	393
	Liabilities and equity
10.	Financial liabilities measured at amortised cost	90,964	279	98,944	227
	a) due to banks	10,336	-	12,850	-
	b) due to customers	80,628	279	86,094	227
	c) debt securities in issue	-	-	-	-
20.	Financial liabilities held for trading	3	-	4	-
40.	Hedging derivatives	1,136	-	971	-
60.	Tax liabilities	266	-	226	-
80.	Other liabilities	2,833	3	2,789	36
90.	Employee termination benefits	2	-	2	-
	100. Provisions for risks and charges	163	-	188	-
	110. Valuation reserves	(841)	-	(2,223)	-
	130. Equity instruments	450	-	350	-
	140. Reserves	2,569	-	2,585	-
	180. Profit/(Loss) for the year (+/-)	600	-	602	-
	B Total liabilities and equity	98,145	282	104,438	263
	A-B Net intersegment balances		128		130

he provision of services to Banco osta RFC by oste taliane pA functions is governed by the specific Regulation governing the awarding and outsourcing process of Banco osta RFC, approved by the oste taliane pA's Board of Directors324F 325

his Regulation, in execution of the provisions set out in the Regulations for ring-fenced capital, govern and formalise the process of awarding Banco osta's Corporate Functions to oste taliane in accordance with the relevant regulations, identifying the operational phases, roles and responsibilities of the Bodies and Corporate Functions involved in various ways he general policies and instructions contained in the Regulation in relation to transfer pricing are detailed in specific Operating Guidelines, jointly developed by Banco osta and other oste taliane pA functions he Operating Guidelines establish, among other things, the applicable levels of service and transfer prices and are effective following an authorisation process involving the relevant Functions, the Chief xecutive Officer and, where required, the oste taliane pA's Board of Directors When Banco osta intends to contract out a major process or a control procedure, whether in its entirety or in part, to oste taliane pA in accordance with specific Operating Guidelines, it must give prior notice to the Bank of taly n accordance with Bank of taly Circular 285 issued on 17 December 2013, art Four, the Board of tatutory Auditors is required to verify, at least every six months, that the policies adopted are fit for purpose and are in compliance with the related statutory requirements and supervisory standards

n line with 2022, the services are charged for in the form of transfer prices he transfer prices paid, inclusive of commissions and any other form of remuneration due, are determined on the basis of market prices and tariffs for the same or similar services, identified, where possible, following a benchmarking process When the specifics and/or the particular nature of a service provided by a oste taliane function do not allow the use of a comparable market price, a cost-based method is used, again with the support of benchmarking to ensure that the price charged is adequate for the service provided n such a case, an adequate mark-up, defined on the basis of appropriate analyses of comparable subjects, shall be applied he prices set in each Operating Guidelines can be reduced in the presence of operating losses of the activities outsourced or in case of penalties due to the failure to achieve pre-established service levels, as measured by specific performance indicators he Operating Guidelines in force were effective as of 1 January 2023 and will expire on 31 December 2025 he transfer prices, defined in the Guidelines, may be revised every year in connection with the planning and budget process

For the purposes of oversight of the unbundled accounts, in 2023 the Board of tatutory Auditors conducted the relevant audit activities during 2 meetings, reporting its conclusions in its annual report to shareholders for the year ended 31 December 2023

4 2 ROC D G D G A D R C AL R LA O W H H AU HOR

R LA O W H H AU HOR

Autorità Garante della Concorrenza e del Mercato (AGCM - the talian Antitrust Authority)

On 9 March 2015, the Authority notified oste taliane of an investigation of Banco osta RFC for alleged violation of articles 20, 21 and 22 of the Consumer Code, regarding the "Libretto mart" product On 21 December 2015, the AGCM notified oste taliane of its final ruling in which it deemed the oste taliane's conduct unfair and imposed a fine of €0 54 million,

³²⁵ At its meeting of 28 June 2023, the Board of Directors approved an update to the "Regulation governing BancoPosta RFC's contracting out and outsourcing process", regulating and formalising both the process of contracting BancoPosta's Corporate Functions to Poste Italiane and the process of outsourcing to third parties outside Poste Italiane's organisation.

limited to a tenth of the maximum applicable amount taking into account the mitigating circumstance that oste taliane had adopted initiatives aimed at allowing customers to benefit from the bonus rate he Lazio Regional Administrative Court's ruling, which did not uphold the appeal against the aforementioned penalty, was challenged before the Council of tate, which set the hearing for 6 June 2024

On 24 March 2022, the talian Antitrust Authority (AGCM) initiated proceeding /11287 against oste taliane, with reference to Banco osta RFC, for alleged unfair commercial practices in relation to the information on the expiry and prescription dates of paper nterest-bearing ostal Certificates, as (i) during the placement of the postal certificates, oste allegedly omitted to indicate the maturity and/or prescription date, as well as to provide information regarding the legal consequences arising from the expiry of the aforementioned terms and/or provided such information with a confusing and deceptive wording; (ii) in the management of the postal certificates that had expired over the last five years, oste allegedly omitted to inform the holders of postal certificates close to the expiry of the prescription period, of the expiry of that period and the legal consequences arising in the event of failure to request the redemption of the postal certificate within that period On 13 April 2022, oste sent a memorandum to the AGCM in which it responded to the request for information and the objections contained in the writ On 30 August 2022, the AGCM notified oste of the otice of nvestigative Findings, substantially confirming the objections of the opening proceedings On 19 eptember 2022, oste filed its final statement of defence, accompanied by the steps it had taken, on a voluntary basis, to eliminate the Authority's concerns, without complying with the objections raised in the proceedings On 4 ovember 2022, the Authority notified oste of its final decision imposing an administrative penalty of €1 4 million his amount was thus quantified taking into account the actions implemented by oste taliane on a voluntary basis, which were deemed appropriate to improve the information provided to consumers; in fact, the Authority granted oste taliane a 60% reduction in the amount of the fine n line with the provisions of the final measure, on 2 February 2023, oste taliane sent its Report of Compliance with the AGCM's warning he Resolution itself was challenged by oste at the Regional Administrative Court, which, at the outcome of the hearing on the merits of 7 June 2023, issued an order, on 13 eptember 2023, ordering the suspension of the trial in question, pending the definition of the preliminary referral to the Court of Justice of the uropean Union ordered by the same Regional Administrative Court with order no 12962 of 1 August 2023

BA K OF ALY

he Bank of taly, from 14 March 2022 to 15 July 2022, conducted an inspection at oste taliane, with reference to the Banco osta RFC, on profitability and the business model, governance and control systems, interest rate risk management methods including related internal modelling, new tax credit business and associated risks On 30 ovember 2022, the report containing a number of findings and a "partially unfavourable" assessment was delivered to oste taliane oste taliane, by the established deadline and after discussion at the Board of Directors' meeting of 25 January 2023, notified the Bank of taly of its considerations and planned improvements; for the only finding in respect of which a sanctioning procedure was initiated, oste taliane sent counter-claims in support of the correctness of its actions After examining the counter-claims and evaluating the actions already implemented or planned by oste taliane pA, the Bank of taly approved the filing he improvement plan communicated to the Bank of taly is currently being implemented and is monitored on a monthly basis by Banco osta's control functions

On 20 July 2022, the Authority sent a notice to oste taliane pA, with reference to Banco osta RFC, and to oste ay concerning the manner in which the funds received by oste ay in respect of the issuance of electronic money should be managed t should be noted that the upervisory rovisions for M s provide that such funding may be deposited with a bank authorised to operate in taly, invested in qualified debt securities or particular units of harmonised mutual funds ince the creation of oste ay, these sums are deposited in a postal current account ("conto di tutela") and contribute to the funds from private customers of Banco osta RFC, which are invested in euro area government bonds n this regard,

the Authority initiated discussions with Banco osta and oste ay in 2021, in view of the fact that Banco osta was not deemed to be an entity that could be assimilated to the concept of "credit institution" under the relevant uropean legislation n the face of a proposed alternative approach, aimed at equating the deposit with Banco osta of the sums collected by oste ay with a direct investment in qualified debt securities, in the aforementioned communication the Authority asked Banco osta and oste ay for further observations, aimed at identifying an operational solution that would allow full alignment with the relevant regulatory provisions Upon completion of the further investigations requested, a transitional solution was identified, also on the basis of the discussions with the Authority his solution was represented to the Bank of taly in a communication sent jointly by Banco osta and oste ay on 29 March 2023 Consistent with this solution, a draft of the revolving pledge agreement was prepared and sent to the Bank of taly on 4 August 2023, supported also by the opinion of an external law firm

O H R ROC D G

Federconsumatori, with a writ of summons dated 14 May 2021, initiated a class action against oste taliane, with reference to Banco osta RFC pursuant to article 140-bis of the Consumer Code, before the Court of Rome he value of the dispute to date is approximately €8 5 thousand

By the summons in question, Federconsumatori contests that the capitalisation of interest on 30-year interest-bearing postal certificates (marked with the "Q" series, issued by Cassa Depositi e restiti from 1986 to 1995, pursuant to Ministerial Decree 13 June 1986 by the Minister of reasury, which were subsequently transferred to the Ministry of conomy and Finance, pursuant to the M F Decree of 5 December 2003) is carried out annually net of withholding tax (now substitute tax), rather than gross, with the effect of recognising to savers a lower return than that allegedly due

On 27 July 2021, oste taliane appeared before the court, objecting, on a preliminary basis, to the inadmissibility of the class action, on a number of preliminary grounds, as well as to the fact that the plaintiffs' and potential members' claims were time-barred, and contested the merits of the proposed claim

he Court of Rome, in an order dated 11 January 2022, held that the request submitted by Federconsumatori was manifestly unfounded, recognising, inter alia, the lack of passive legitimacy of oste taliane Federconsumatori appealed the order of the Court of Rome, and the Court of Appeal set the hearing for closing arguments for 22 May 2024

4 3 MA R AL V DUR G H Y AR

Capital injection into BancoPosta RFC

n 2021, oste taliane pA placed a hybrid subordinated perpetual bond issue with a non-call period of 8 years aimed at institutional investors Following this issue, on 30 June 2023, there was a further capital injection325F ³²⁶ into Banco osta RFC, via the granting of a €100 million perpetual subordinated loan with a 5-year non-call period, under terms and conditions that allow it to be counted as Additional ier 1 ("A 1") capital, designed to strengthen its leverage ratio

4 4 R FORM OF RA B CHMARK

For an analysis of the effects of the rate benchmark reform, please refer to the information provided in art

³²⁶ This capital injection followed the one completed on 30 June 2021 for €350 million.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

A.2 – PART RELATING TO PRINCIPAL FINANCIAL STATEMENT ITEMS

he following notes have been numbered in accordance with instructions contained in Bank of taly Circular 262/2005 Omitted numbers denote information not relevant to the eparate Report

1 – F A C AL A M A UR D A FA R VALU HROUGH ROF OR LO

a) recognition criteria

Financial assets measured at fair value through profit or loss are initially recognised on the settlement date for debt and equity instruments, whereas, for derivative contracts, on the subscription date Financial assets are initially recognised at fair value which is generally the price paid Changes in fair value between the trade date and the settlement date are recognised in the eparate Report

b) classification criteria

his item includes all financial assets other than those classified as "Financial assets measured at fair value through other comprehensive income" and as "Financial assets measured at amortised cost" n particular, this item includes: a) financial assets purchased and held mainly for trading; b) financial assets designated as such on initial recognition, thanks to the fair value option; c) financial assets mandatorily measured at fair value through profit or loss

his item comprises:

• debt securities and loans that are classified in the "Other/ rading" business model (thus not in the "Hold to Collect" and "Hold to Collect and ell" business models) or fail to meet the test326F ³²⁷;
• equity instruments held for trading or that were not initially recognised at fair value through other comprehensive income;
• derivative contracts, except those designated as hedges, that are classified as assets or liabilities held for trading, depending on whether their fair value is positive or negative; positive and negative fair values arising from transactions with the same counterparties are offset during collateralisation, where allowed by contract

c) measurement and recognition of gains and losses

hese financial assets are recognised at fair value with any changes in fair value recognised in profit or loss in line " tem 80 - rofits/(Losses) on trading" and in line " tem 110 – rofits/(Losses) on other financial assets/liabilities measured at fair value through profit or loss"

Dividends from equity investments classified as Financial assets measured at fair value through profit or loss are recognised in " tem 70 - Dividends and similar income" at the time their distribution is approved and the right to receive payment accrues

d) derecognition criteria

hese financial assets are derecognised when the contractual rights to the cash flows of those financial assets lapse or on the disposal of the financial asset and all risks and rewards relating to the financial asset or their control are substantially transferred f the substantial transfer of risks and rewards cannot be ascertained, financial assets are derecognised if no

³²⁷ The acronym SPPI - Solely Payments of Principal and Interest defines financial assets held solely to collect the relevant contractual cash flows, as represented by payments of principal and interest accrued on the principal outstanding at specified dates. The SPPI test is intended to check that the characteristics of the instruments are consistent with this objective.

control is retained over them Finally, transferred assets are derecognised if the contractual right to receive the cash flows of the assets is retained, but at the same time a contractual obligation is assumed to pay these flows to a third party, without delay and only to the extent of those received

2 – F A C AL A M A UR D A FA R VALU HROUGH O H R COM R H V COM

a) recognition criteria

Financial assets measured at fair value through other comprehensive income are initially recognised on the settlement date hese assets are initially recognised at fair value which is generally the price paid Changes in fair value between the trade date and the settlement date are recognised in the eparate Report

b) classification criteria

his item includes financial assets held in connection with a business model where financial instruments are held to collect contractual cash flows and for sale ("Hold to Collect and ell" business model), with the relevant contract calling for the payment, at specified dates, of principal and interest accrued on the principal outstanding ( )

his item includes debt securities that meet the above characteristics

c) measurement and recognition of gains and losses

Financial assets are measured at fair value and any subsequent change in fair value is recognised through Other comprehensive income ("OC ") until the financial asset is either derecognised or reclassified, except for currency gains and losses recognised in the statement of profit or loss in " tem 80 – rofits/(Losses) on trading" When the financial asset is derecognised, the related cumulative gains and losses recognised in OC are reclassified to profit or loss in " tem 100 – rofits/(Losses) on disposal or repurchase"

he effects of the application of amortised cost are recognised in profit or loss in " tem 10 - nterest and similar income"

xpected credit losses are calculated in relation to these financial assets, as illustrated in the specific section hese expected losses are recognised in profit or loss in " tem 130 – et losses/recoveries due to credit risk" with a counter-entry made under the " tem 110 – Valuation reserves"

d) derecognition criteria

hese financial assets are derecognised when the contractual rights to the cash flows of those financial assets lapse or on the disposal of the financial asset and all risks and rewards relating to the financial asset or their control are substantially transferred f the substantial transfer of risks and rewards cannot be ascertained, financial assets are derecognised if no control is retained over them Finally, transferred assets are derecognised if the contractual right to receive the cash flows of the assets is retained, but at the same time a contractual obligation is assumed to pay these flows to a third party, without delay and only to the extent of those received

3 – F A C AL A M A UR D A AMOR D CO

a) recognition criteria

Financial assets measured at amortised cost are initially recognised on (i) the settlement date for debt securities and investments and (ii) the date on which the service is rendered for trade receivables hey are initially recognised at fair value which is generally the price paid for debt securities or at the contractual value of the service rendered for all the other receivables Changes in fair value between the trade date and the settlement date are recognised in the eparate Report

b) classification criteria

his item includes financial assets held in connection with a business model where the objective is the collection of the relevant cash flows ("Hold to Collect" - H C business model), represented by payments, at specified dates, of principal and interest accrued on the principal outstanding ( ) he business model on which the classification of financial assets is based permits the sale of such assets; if the sales are not occasional, and are not immaterial in terms of value, consistency with the H C business model should be assessed

n addition to debt instruments that reflect the characteristics outlined above, this item comprises mainly the deposits with the M F and the trade receivables

c) measurement and recognition of gains and losses

hese assets are measured at amortised cost, that is the value assigned to the financial asset on initial recognition, net of any principal reimbursement, plus or minus the cumulative amortisation by using the effective interest rate method on the difference between the initial value and the value at maturity, after deducting any impairment Any gains or losses are recognised in profit or loss in line " tem 10 - nterest and similar income"

he carrying amount of financial assets measured at amortised cost is adjusted to take into account expected credit losses, as illustrated in the specific section hese expected credit losses are recognised in profit or loss in line " tem 130 – et losses/recoveries due to credit risk"

d) derecognition criteria

hese financial assets are derecognised when the contractual rights to the cash flows of those financial assets lapse or on the disposal of the financial asset and all risks and rewards relating to the financial asset or their control are substantially transferred f the substantial transfer of risks and rewards cannot be ascertained, financial assets are derecognised if no control is retained over them Finally, transferred assets are derecognised if the contractual right to receive the cash flows of the assets is retained, but at the same time a contractual obligation is assumed to pay these flows to a third party, without delay and only to the extent of those received

4 – H DG

For hedge accounting transactions, the oste taliane Group has elected to use the option made available by FR 9 and has retained the pre-existing accounting treatments provided for by A 39

a) recognition and classification criteria

Derivative hedges are initially recognised on conclusion of the relevant contract here are two types of hedges:

• fair value hedges: hedge of the exposure to a change in fair value of a recognised asset or liability attributable to a particular risk, and that could have an impact on profit or loss;

• cash flow hedges: a hedge of the exposure to the variability of cash flows attributable to a particular risk associated with a recognised asset or liability or with a highly probable forecast transaction, and that could have an impact on profit or loss

Derivative contracts that constitute effective hedging relationships are presented as assets or liabilities depending on whether the fair value is positive or negative

b) measurement and recognition of gains and losses

Derivatives are initially recognised at fair value on the date the derivative contract is executed f derivative financial instruments qualify for hedge accounting, gains and losses arising from changes in fair value after initial recognition are accounted for in accordance with the specific policies described below he relationship between each hedging instrument and the hedged item is documented, as well as the risk management objective, the strategy for undertaking the hedge transaction and the methods used to assess effectiveness Assessment of whether the hedging derivative is effective takes place both at designation of each derivative instrument as hedging instrument, and during its life

• Fair value hedges

When the hedge is related to recognised assets or liabilities, the changes in fair value of both the hedging instrument and the hedged item are recognised in profit or loss Any difference represents the ineffective portion of the hedge and is accounted for as a loss or gain, recognised separately in line " tem 90 - rofits/(Losses) on hedging"

• Cash flow hedges

he effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges after initial recognition is recognised in a specific equity reserve (the Cash flow hedge reserve, within line " tem 110 – Valuation reserve") A hedging transaction is generally considered highly effective if, both at inception of the hedge and on an ongoing basis, changes in the expected future cash flows of the hedged item are substantially offset by changes in the fair value of the hedging instrument f the hedging transaction is not fully effective, the gain or loss arising from a change in fair value relating to the ineffective portion is recognised in line " tem 90 - rofits/(Losses) on hedging"

Amounts accumulated in equity are recycled to profit or loss in the period in which the hedged item affect profit or loss n particular, in the case of hedges associated with a highly probable forecast transaction (such as the forward purchase of debt securities), the reserve is reclassified to profit or loss in the period or in the periods in which the asset or liability, subsequently accounted for and connected to the aforementioned transaction, will affect profit or loss (for example, an adjustment to the return on the security)

f, during the life of the derivative, the forecast hedged transaction is no longer expected to occur, the related gains and losses accumulated in the cash flow hedge reserve are immediately reclassified in line " tem 80 – rofits/(Losses) on trading" for the relevant year When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, the related gains and losses accumulated in the cash flow hedge reserve at that time remain in equity and are recognised in profit or loss at the same time as the original underlying

9 – CURR A D D F RR D AXA O

Current income tax expense ( R and RA ) is based on the best estimate of taxable profit for the period and the related regulations, applying the rates in force Deferred tax assets and liabilities are calculated on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts, using tax rates that are expected to apply when the related deferred tax assets are realised or the deferred tax liabilities are settled Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised

Current and deferred taxes are recognised in profit or loss, with the exception of taxes charged or credited directly to equity, in which case the tax effect is recognised directly in equity

Banco osta RFC is not a separate legal person and is not either directly or indirectly assessable to taxes Banco osta's share of taxes on oste taliane pA's overall income is charged to Banco osta RFC based on the profit or loss presented in this eparate Report adjusted for deferred taxation n the case of both R and RA , the computation takes all permanent and temporary changes in Banco osta's operations into account Any items not directly relating to Banco osta are included in the oste taliane computation

Current tax assets and liabilities form part of intersegment relations and are presented in the eparate Report in "Other assets" and "Other liabilities", as they are settled with the segment of oste taliane pA outside the ring-fence, within the scope of internal relations with oste taliane pA, which continues to be the sole taxable entity

10 – ROV O FOR R K A D CHARG

rovisions for risks and charges are recorded to cover losses that are either probable or certain to be incurred, for which, however, there is an uncertainty as to the amount or as to the date on which they will occur rovisions for risks and charges are made when the entity has a present (legal or constructive) obligation as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation rovisions are measured on the basis of management's best estimate of the use of resources required to settle the obligation he value of the liability is discounted, where the time effect of money is relevant, at a rate that reflects current market values and takes into account the risks specific to the liability rovisions are reviewed at each reporting date and are adjusted to reflect the best estimate of the expected charge to meet existing obligations at the reporting date Any effect of the passage of time and the effect of changes in interest rates are shown in the statement of profit or loss under net allocations in the year With regard to the risks for which the occurrence of a liability is only possible, specific information is provided without making any provision Under the option granted by the relevant accounting standards, limited disclosure is provided when, in rare cases, disclosure of some or all of the information regarding the risks in question could seriously prejudice Banco osta RFC's position in a dispute or in ongoing negotiations with third parties

11 – F A C AL L AB L M A UR D A AMOR D CO

a) recognition and classification criteria

Banco osta RFC has no outstanding debt securities and has not issued any such securities since its establishment he sub-items Due to banks and Due to customers consist of funding provided by customers and obtained from the interbank market hese financial liabilities are recognised at fair value on the date of receipt of the funds Fair value is normally the amount received

b) measurement and recognition of gains and losses

Due to banks and customers are measured at amortised cost, employing the effective interest rate method f there is a change in the expected cash flows and they can be reliably estimated, the value of payables is recalculated to reflect the change on the basis of the present value of estimated future cash flows and the internal rate of return initially applied

c) derecognition criteria

2023 Annual Report

Financial liabilities are derecognised when they are extinguished or when the obligation specified in the contract expires, is cancelled or discharged

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

12 – F A C AL L AB L H LD FOR RAD G

a) classification and recognition criteria

his item includes derivative financial instruments that do not qualify for classification as hedging instruments in accordance with accounting standards Financial liabilities held for trading are recognised on the derivative contract date

b) measurement and recognition of gains and losses

Financial liabilities held for trading are measured at fair value through profit or loss in " tem 80 - rofits/(Losses) on trading"

c) derecognition criteria

Financial liabilities on trading are derecognised when they are extinguished or when the obligation specified in the contract expires, is cancelled or discharged

14 – FOR G CURR CY RA AC O

a) recognition criteria

Foreign currency transactions are initially recognised in the functional currency by translating the foreign currency amount at the transaction date spot rate

b) classification, measurement, derecognition and recognition of gains and losses

Foreign currency items are translated at each reporting date as shown below:

• monetary items at closing exchange rates;
• non-monetary items are recognised at their historical cost translated at the transaction date spot rate;
• non-monetary items measured at fair value at closing exchange rates

Foreign exchange differences realised on the settlement of monetary items or on the translation of monetary and nonmonetary items, using exchange rates other than the rate used to translate the item on initial recognition, are recognised in profit or loss in line " tem 80 - rofits/(Losses) on trading"

15 – O H R FORMA O

Revenue recognition from contracts with customers

Revenue deriving from contracts with customers reflects the consideration to which the entity expects to be entitled in exchange for those promised goods and services (transaction price)

he main revenue types of Banco osta RFC are described below, together with an indication of the time-frame in which the performance obligations327F ³²⁸ will be fulfilled:

• o revenue from placement and brokerage: these are recognised over time and measured on the basis of the volumes placed, quantified on the basis of commercial agreements with financial institutions n terms of fees for collection of postal savings, the agreement entered into with Cassa Depositi e restiti envisages payment of a variable consideration on achieving certain levels of inflows, determined annually on the basis of the volume of inflows and expected redemptions; certain commercial agreements, entered into with leading financial partners for the placement of financial products, envisage the return of placement fees in the event of early termination or surrender by the customer;
• o revenue from current account and related services: these are recognised over time, measured on the basis of the service rendered (including the related services, e g bank transfers, securities deposits, etc ) and quantified on the basis of the contract terms and conditions offered to the customer;
• o revenue from commissions on postal current account slips: these are recognised at a point in time given the number of transactions handled by post offices and quantified on the basis of the terms and conditions in the contract of sale

For revenue recognition purposes, the principle provides for the identification and quantification of the variable components of the consideration (discounts, rebates, price concessions, incentives, penalties and other similar) to include them to supplement or adjust the transaction price Of the elements of variable consideration, penalties (other than those related to compensation for damages) take on particular importance hese expenses are deducted directly from revenue

Revenue from activities carried out in favour of or on behalf of the state is recognised on the basis of the amount effectively accrued, with reference to the laws and agreements in force, taking account, in any event, of the provisions contained in legislation regarding the public finances Returns on the portion of current account deposits deposited with the M F are determined on an accruals basis, using the effective interest rate method, and classified in " tem 10 – nterest and similar income" he same classification is applied to income from urozone government bonds, in which deposits paid into accounts by private customers and tax credits Law no 77/2020 are invested

For quantitative details on the distinction between revenue from contracts with customers recognised at a point in time or over time, see art C - ection 2 - Commissions

³²⁸ The performance obligations are defined as the explicit or implicit promise to transfer a distinct good or service to the customer. Revenue is recognised when or as the entity fulfils the performance obligation, that is upon delivery of the good or service to the customer:

^- "at a point in time": in the case of obligations fulfilled at a point in time, revenue is recognised only as control over the good or service is passed to the customer n that respect, consideration is given not only to the significant exposure to the risks and benefits related to the good or service but also physical possession, customer's acceptance, the existence of legal rights, etc ;

^- "over time": in the case of obligations fulfilled over time, the measurement and recognition of revenue reflect, virtually, the progress of the customer's satisfaction An appropriate approach is defined to measure progress of the performance obligation (the output method)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Impairment

Loans and receivables classified under "Financial assets measured at amortised cost" and "Financial assets measured at fair value through other comprehensive income" are tested for impairment in accordance with the xpected Credit Losses ( CL) model he method utilised is the "General deterioration model", whereby:

• if on the reporting date the credit risk of a financial instrument has not increased significantly since initial recognition, a 12-month CL is recognised (stage 1) nterest on the instrument is calculated on the gross carrying amount (amortised cost inclusive of the CL);
• if on the reporting date the credit risk of the financial instrument has increased significantly since initial recognition, a lifetime CL is recognised (stage 2) nterest on the instrument is calculated on the gross carrying amount (amortised cost inclusive of the CL);
• if the financial instrument is impaired, or shows objective evidence of impairment at the reporting date, impairment will continue to be recognised over the lifetime of the financial instrument (stage 3) nterest is recognised on amortised cost, that is the exposure value - determined using the effective interest rate - adjusted for expected losses

n determining whether credit risk has increased significantly, it is necessary to compare the risk of default of the financial instrument at the reporting date with the risk of default of the financial instrument on initial recognition

However, there is a rebuttable default presumption if the financial instrument is more than 90 days past due, unless there is reasonable and supportable information to demonstrate that a default criterion with greater lag is more appropriate

On the other hand, a simplified approach to measure the loss provisions is applied to trade receivables that do not contain a significant financing component pursuant to FR 15 he simplified approach is based on a matrix of observed historical losses

For a detailed description of the approaches, reference is made to art – ection 1 – Credit risk

ax credits Law no 77/2020

he tax credits were acquired by oste taliane pA and allocated to Banco osta against free capital resources as well as resources subject328F ³²⁹ and not subject to the restriction of use in accordance with the provisions of the "Decreto Rilancio" (Law Decree no 34/2020 converted with amendments by Law no 77/2020) by which tax breaks were introduced to support Citizens and Businesses to encourage economic recovery following the Covid-19 health emergency he main features of these tax credits are: (i) the possibility of use in offsetting; (ii) transferability to third-party purchasers; and (iii) nonrefundability by the tax Authorities

he tax credits are allocated to Banco osta at acquisition cost and upon maturity of the individual units are transferred to oste taliane pA at their nominal value for the relevant offsetting, as the Banco osta RFC do not have legal personality and are not autonomously subject to direct or indirect taxation

For said receivables, since it is not possible to identify an accounting framework directly applicable to this case, in compliance with the provisions of A 8, an accounting policy was defined, suitable for providing relevant and reliable information aimed at ensuring a faithful representation of the financial position, income and cash flows and which reflects the economic substance and not merely the form of the transaction On the basis of the analyses carried out and the

³²⁹ With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase tax credits.

documents published by the main talian supervisory bodies329F ³³⁰, although the definition of financial assets in A 32 is not directly applicable to this case, an accounting model was developed based on FR 9 given that:

• a) at inception, an asset as defined by the Conceptual Framework arises in the transferee's financial statements;
• b) they may be used to offset a payable that is usually settled in cash (tax payables), and exchanged for other financial assets on terms that may be potentially favourable to the entity;
• c) a business model can be identified (Hold to Collect, Hold to Collect and ell or other business models)

At the date of purchase, these receivables are recognised at their fair value (coinciding with the price paid) and subsequently measured at amortised cost, as they were acquired to be used to offset tax or social security payables by oste taliane pA, based on the provisions of the relevant regulations ("Hold to Collect" - H C business model)

As specified by the joint document of the Authorities, taking into account that purchased tax credits do not represent tax assets, government grants, intangible assets or financial assets under international accounting standards, the most appropriate classification for the purposes of presentation in the financial statements is the residual classification in " tem 120 - Other Assets" in the tatement of financial position he related remuneration is recognised to the tatement of profit or loss under " tem 10 - nterest and similar income"

Repurchase agreements

Any securities received as part of a transaction entailing subsequent re-sale and the delivery of securities as part of a transaction entailing their subsequent repurchase are not either recognised or derecognised Consequently, in the case of securities purchased under a resale agreement, the amount paid is recognised as an amount due from customers or banks under Financial assets measured at amortised cost; in the case of securities sold under a repurchase agreement, the liability is recognised as an amount due to banks or customers under Financial liabilities measured at amortised cost he transactions described are subject to offsetting if, and only if, they are carried out with the same counterparty, have the same maturity and offsetting is provided for in the contract

Related parties

Related parties within the oste taliane Group are oste taliane pA's functions outside the ring-fence and oste taliane pA's direct and indirect subsidiaries and associates

Related parties external to the Group include the M F and its direct and indirect subsidiaries and associates Related parties also include oste taliane pA's key management personnel and the funds representing post-employment benefit plans for the personnel of Banco osta RFC and its related parties he state and public sector entities other than the M F are not classified as related parties Related party transactions do not include those deriving from financial assets and liabilities represented by instruments traded on organised markets

mployee benefits

Short-term employee benefits are those that will be fully paid within twelve months of the end of the year in which the employee provided his or her services uch benefits include wages, salaries, social security contributions, holiday pay and sick pay

he undiscounted value of short-term employee benefits, to be paid to employees in consideration of employment services provided over the relevant period, is accrued as personnel expenses

³³⁰ On 5 January 2021, the Bank of Italy, Consob and IVASS published Document no. 9 of the Coordination Round-Table Group on the application of IAS/IFRS "Accounting treatment of tax credits associated with the "Cura Italia" and "Rilancio" Law Decrees acquired as a result of disposal by direct beneficiaries or previous purchasers".

Post-employment benefits consist of two types:

• Defined benefit plans

Defined benefit plans include employee termination benefits payable to employees in accordance with art 2120 of the talian Civil Code, limited to the part of employee termination benefits accrued until 31 December 2006

Under these plans, given that the amount of the benefit to be paid is only quantifiable following the termination of employment, the related effects on profit or loss or the financial position are recognised on the basis of actuarial calculations n particular, the liability to be paid on cessation of employment is calculated using the projected unit credit method and then discounted to recognise the time value of money prior to the liability being settled he liability recognised in the eparate Report is based on calculations performed by independent actuaries he calculation takes account of employee termination benefits accrued for the work services already provided and is based on actuarial assumptions described in art B, ection 9 of Liabilities to which reference should be made Actuarial gains and losses are recognised directly in equity at the end of each reporting period, based on the difference between the carrying amount of the liability and the present value of the Banco osta RFC's obligations at the end of the period, due to changes in the actuarial assumptions

• Defined contribution plans

mployee termination benefits payable pursuant to art 2120, talian Civil Code fall within the scope of defined contribution plans provided they vested subsequent to 1 January 2007 and were paid into a upplementary ension Fund or a reasury Fund at Contributions to defined contribution plans are recognised in profit or loss when incurred, based on their nominal value

Termination benefits payable to employees are recognised as a liability when Banco osta RFC gives a binding commitment, also on the basis of consolidated relationships and mutual undertakings with union representatives, to terminate the employment of an employee, or group of employees, prior to the normal retirement date or, alternatively, an employee or group of employees accepts an offer of benefits in consideration of a termination of employment ermination benefits payable to employees are immediately recognised as personnel expenses

Other long-term employee benefits consist of benefits not payable within twelve months of the end of the reporting period during which the employees provided their services he net change in the value of any of the components of the liability during the reporting period is recognised in full in profit or loss

hare-based payments

hare-based payment transactions may be settled in cash, equity instruments, or other financial instruments n the event of share-based payment transactions Banco osta RFC is required to measure the goods or services acquired and the liability incurred at fair value

n the case of cash-settled share-based payment transactions:

• a liability is recognised as a matching entry at cost;
• if the fair value of the goods or services received or acquired cannot be reliably determined, this value must be estimated indirectly on the basis of the fair value of the liability;
• the fair value of the liability must be remeasured at the end of each reporting period, recognising any changes in fair value in profit or loss, until it is extinguished

n the case of equity-settled share-based payment transactions:

• an increase in shareholders' equity is recorded as a matching entry at cost;

• if the fair value of the goods or services received or acquired cannot be reliably determined, this value must be estimated indirectly on the basis of the fair value of the equity instruments granted at the grant date

n the event of benefits granted to employees, recognition should take place in " tem 160 a) – ersonnel expenses" over the period in which the employees render service and the expense accounted for

erpetual subordinated loan

he perpetual subordinated loan is classified as an equity instrument, in view of the fact that Banco osta RFC has the unconditional right to defer repayment of the principal and payment of the coupons until the date of its liquidation herefore, the amount received from oste taliane pA is recognised as an increase in the shareholders' equity; conversely, repayments of principal and payments of coupons due (at the time the related contractual obligation arises) are recognised as a decrease in the shareholders' equity

Classification of the costs for services provided by oste taliane pA

ervice costs charged by oste taliane pA's functions outside the ring-fence are normally recognised in " tem 160 b) - Other administrative expenses"

Use of estimates

he preparation of financial information requires the use of estimates and assumptions that can have a significant effect on the final values indicated in the financial statements and in the disclosure provided he preparation of these estimates involves the use of available information and the adoption of subjective assessments, also based on historical experience, used for the formulation of reasonable assumptions for the recognition of operating events stimates and assumptions are periodically reviewed and the impact of any changes is reflected in the financial statements for the period in which the estimate is revised if the revision only influences the current period, or also in future periods if the revision influences both current and future periods Due to their nature, the estimates and assumptions used may vary from year to year and, therefore, it cannot be excluded that in subsequent years, the values recorded in this eparate Report may also vary significantly as a result of changes in the subjective valuations used

Accounting treatments that require greater subjectivity in the preparation of estimates are described below, also taking into account the unique characteristics of the macroeconomic environment of reference recorded during the year

• mpairment and stage allocation

For the purposes of calculating impairment and determining the stage allocation, the main factors estimated are as follows, relating to the internal model developed for overeign, Banking and Corporate counterparties:

• estimates of ratings by counterparty;
• estimation of the probability of default " D" for counterparties

With regard to trade receivables, on the other hand, the oste taliane Group does not apply stage allocation in accordance with the implified Approach mpairment, for these items in the financial statements, is based on:

• analytical impairment: when a defined credit threshold is exceeded, the individual credit position is analytically monitored on the basis of internal or external evidence; or
• forfeit impairment: elaboration of a provision matrix for historical losses

For further details see art - ection 1 - Credit risk

he main factors in the recognition of revenue from contracts with customers include elements of variable consideration, particularly penalties (other than those related to compensation for damages) lements of variable consideration are identified at the inception of the contract and estimated as of every close of the accounts for the entire contract term, to take into account new circumstances and changes in the circumstances already considered for the previous estimations lements of variable consideration include refund liabilities

• Deferred tax assets

he recognition of deferred tax assets is based on the expectation of taxable income in future years Assessments of expected taxable income depend on factors which may change over time, impacting on the valuation of the deferred tax assets in the eparate Report

• rovisions for risks and charges

rovisions for risks and charges represent probable liabilities in connection with personnel, suppliers, third parties and, in general, liabilities deriving from present obligations hese provisions cover the liabilities that could result from legal action of varying nature, the impact on profit or loss of seizures incurred and not yet definitively assigned, and amounts expected to be refundable to customers where the final amount payable has yet to be determined

Determination of the amounts to be provided involves the use of estimates based on current knowledge of factors that may change over time, potentially resulting in outcomes that may be significantly different from those taken into account when preparing this eparate Report

• hare-based payments

As described in art , internal pricing tool was used to assess the hare-based payment arrangements in place within the oste taliane Group at the close of this Report, which adopts simulation models consistent with the requirements of the relevant accounting standards and takes account of the specific characteristics of the lans he plan terms and conditions link the award of the related options to the occurrence of certain events, such as the achievement of performance targets and performance hurdles and, in certain areas of operation, compliance with certain capital adequacy and liquidity requirements For these reasons, measurement of the liability, equity reserve and the corresponding economic effects involves the use of estimates based on current knowledge of factors that may change over time, potentially resulting in outcomes that may be significantly different from those taken into account in preparing this Report

• mployee termination benefits

he measurement of mployee termination benefits is also based on calculations performed by independent actuaries he calculation takes account of termination benefits accrued for the period of service to date and is based on various demographic and economic-financial assumptions he main actuarial assumptions applied in the calculation of employee termination benefits at 31 December 2023, also based on the experience of each Group company and the reference best practice, are as follows: hese assumptions, which are based on the Group's experience and relevant best practices, are subject to periodic reviews

conomic and financial assumptions

	31.12.2023
Discount rate	3.08%
Inflation rate	2.00%
Annual rate of increase of employee termination benefits	3.00%

2023 Annual Report Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Demographic assumptions

	31.12.2023
Mortality	ISTAT 2018
Disability	INPS tables broken down by age and gender
Pensionable age	Achievement of general mandatory insurance requirements

mployee turnover and employee termination benefits advances annual frequencies

	31.12.2023
Advances Frequencies	0.40%
Annual Employee Turnover Frequencies	2.00%

A.3 – INFORMATION ON TRANSFERS BETWEEN FINANCIAL ASSET PORTFOLIOS

here have been no transfers between portfolios

A.4 – INFORMATION ON FAIR VALUE

Qualitative information

Banco osta RFC had adopted the oste taliane Group's fair value policy his policy sets out the general principles and rules to be applied in determining fair value for the purposes of preparing the financial statements, conducting risk management assessments and supporting the market transactions carried out by the Finance departments of the various Group entities he general principles for measuring financial instruments at fair value have not changed since 31 December 2022 hese principles have been defined in compliance with indications from the various (banking and insurance) regulators and the relevant accounting standards, ensuring consistent application of the valuation techniques adopted at Group level he methods used have been revised, where necessary, to take into account developments in operational procedures and in market practices during the year

n compliance with FR 13 - Fair Value Measurement, the valuation techniques used are described below

he assets and liabilities concerned (specifically assets and liabilities measured at fair value and measured at cost or amortised cost, for which fair value is required to be disclosed in the notes) are classified with reference to a hierarchy that reflects the materiality of the sources used for their valuation

he hierarchy consists of three levels

Level 1: this level is comprised of fair values determined with reference to unadjusted prices quoted in active markets for identical assets or liabilities to which the entity has access on the measurement date For Banco osta RFC, the financial instruments included in this category consist of bonds issued by the talian government, the German and French governments, the valuation of which is based on the bid prices, according to a hierarchy of sources where the M (the wholesale electronic market for government securities) ranks first, M LA (Milan tock xchange) second, for bonds intended for retail customers, and the CBB (Composite Bloomberg Bond rader) third

Level 2: this level is comprised of fair values based on inputs other than Level 1 quoted market prices that are either directly or indirectly observable for the asset or liability30F ³³¹ For Banco osta RFC, these include the following types of financial instrument:

• traight talian and international government and non-government bonds, quoted on inactive markets or unquoted;
• Unquoted equities;
• Derivative financial instruments;
• Reverse Repos;
• Financial liabilities either quoted on inactive markets or unquoted comprised of funding Repos

Level 3: this category includes the fair value measurement of assets and liabilities using inputs which cannot be observed, in addition to Level 2 inputs n Banco osta RFC's case, this category includes the following financial instruments for which no price is observable directly or indirectly in the market:

• Unquoted equities;
• ax credits Law no 77/202031F ³³²;
• forward sale of unquoted equities

A 4 1 FA R VALU L V L 2 A D 3: VALUA O CH QU A D U U D

nformation on the valuation models used is summarised below by type of financial instrument

Level 2: the following categories of financial instruments belong to this level:

• traight talian and international government and non-government bonds, quoted on inactive markets or unquoted: valuation is based on discounted cash flow techniques involving the computation of the present value of future cash flows, inputting rates from yield curves incorporating spreads reflecting credit risk that are based on spreads determined with reference to quoted and liquid benchmark securities issued by the issuer, or by other companies with similar characteristics to the issuer Yield curves may be slightly adjusted to reflect liquidity risk relating to the absence of an active market
• Unquoted equities, for which it is to use the price of quoted equities of the same issuer as a benchmark he price inferred in this manner is adjusted through the application of a discount, quoted by primary market counterparties, representing the cost implicit in the process to align the value of the unquoted shares to the quoted ones
  • Derivative financial instruments:
  • − lain vanilla interest rate swaps: valued using discounted cash flow techniques, involving the computation of the present value of future differentials between the receiver and payer legs of the swap he construction of yield curves to estimate future cash flows indexed to market parameters (money market rates and/or inflation) and computation of the present value of future differentials are carried out using techniques commonly used in capital markets

³³¹ Given the nature of BancoPosta RFC's operations, the observable data used as input to determine the fair value of the various instruments include, for example, quoted prices provided by third parties (pricing or brokerage services), yield and inflation curves, exchange rates provided by the European Central Bank, ranges of rate volatility, inflation option premiums, interest rate swap spreads or credit default spreads which represent the creditworthiness of specific counterparties and any liquidity adjustments quoted by primary market counterparties.

³³² These credits have been measured at amortised cost since 1 October 2022.

• − nterest rate swaps with an embedded option: valuation is based on a building block approach, entailing decomposition of a structured position into its basic components: the linear and option components he linear component is measured using the discounted cash flow techniques described for plain vanilla interest rate swaps above Using the derivatives held in Banco osta RFC's portfolio as an example, the option component is derived from interest rate or inflation rate risks and is valued using a closed form expression, as with classical option valuation models with underlyings exposed to such risks
• − Bond forwards: valuation is based on the present value of the differential between the forward price of the underlying instrument as of the measurement date and the settlement price

he derivatives held in Banco osta RFC's portfolio may be pledged as collateral and the fair value, consequently, need not be adjusted for counterparty risk he yield curve used to compute present value is selected to be consistent with the manner in which cash collateral is remunerated his approach is also followed for security in the form of pledged debt securities, given the limited level of credit risk inherent in the securities held as collateral by Banco osta RFC

• Reverse Repos: are valued using discounted cash flow techniques involving the computation of future contractual cash flows Reverse Repos may also be used for collateral and in such cases fair value need not be adjusted for the counterparty's credit risk
• Financial liabilities either quoted on inactive markets or not at all, consisting of repurchase agreements used to raise finance are valued using discounted cash flow techniques involving the computation of future contractual cash flows Repos may also be used for collateral and in such cases fair value need not be adjusted for the counterparty's credit risk

Level 3: the following categories of financial instruments belong to this level:

• Unquoted equities for which no price is observable directly or indirectly in the market Measurement of these instruments is based on the price of quoted equities of the same issuer as a benchmark he price inferred in this manner would be adjusted through the application of the discount implicit in the process to align the value of the unquoted shares to the quoted ones
• ax credits Law no 77/2020 for which no price is observable directly or indirectly in the market For this type of instrument, the method of determining fair value involves the application of the discounted cash flow valuation technique, which consists of discounting cash flows to maturity using the yield curve constructed by adding to the riskfree rate curve the extra yield calculated starting from the price at the date of purchase of the receivables he spread remains fixed for the life of the instrument
• Forward sale of unquoted equities, for which the valuation of the counterparty is recalculated by discounting the difference between the forward price of the equity security underlying the derivative updated to the valuation date and the settlement price

A 4 2 M A UR M ROC A D V

he processes used in recurring and non-recurring fair value measurements of instruments classified in Level 3 are described in paragraphs A 4 1 and A 4 5, respectively, of art A

ensitivity analysis of recurring fair value measurements classified in Level 3 of the hierarchy is conducted for the eries C Visa ncorporated Convertible articipating referred tock Measurement of these financial instruments is in fact subject to change following alterations that may occur in the discount factor applied in determining fair value, in order to take into account the illiquid nature of the shares his discount factor, estimated using an internal valuation technique, is above all influenced by the annual volatility of the underlying shares Applying the maximum volatility according to the technique used, the potential reduction in fair value could reach approximately 11 24%

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

A 4 3 FA R VALU H RARCHY

he main factors contributing to transfers between fair value levels include changes in the observability of significant inputs and market conditions (including the liquidity parameter) and refinements in the valuation models used in measuring fair value

For all classes of assets and liabilities, the transfer from one level to another occurs on the date of the event or change in circumstances that led to the transfer

nformation on transfers during the period is provided in art A 4 5 - Fair Value Hierarchy

A 4 4 O H R FORMA O

here is no need to provide the additional disclosures required by FR 13, paragraphs 51, 93(h) and 96

Quantitative information

A 4 5 FA R VALU H RARCHY

A 4 5 1 Assets and liabilities measured at fair value on a recurring basis: breakdown by fair value level

						(€m)
		31.12.2023		31.12.2022
Assets/Liabilities measured at fair value		Level 2	Level 3*	Level 1	Level 2	Level 3*
1. Financial assets measured at fair value through profit or loss	-	-	26	-	20	20
a) financial assets held for trading	-	-	-	-	-	-
b) financial assets designated at fair value	-	-	-	-	-	-
c) other financial assets mandatorily measured at fair value	-	-	26	-	20	20
2. Financial assets measured at fair value through other comprehensive income	32,901	168	-	33,017	144	-
3. Hedging derivatives	-	4,257	-	-	6,109	-
4. Property, plant and equipment	-	-	-	-	-	-
5. Intangible assets	-	-	-	-	-	-
Total	32,901	4,425	26	33,017	6,273	20
1. Financial liabilities held for trading	-	-	3	-	-	4
2. Financial liabilities designated at fair value	-	-	-	-	-	-
3. Hedging derivatives	-	1,136	-	-	971	-
Total	-	1,136	3	-	971	4

(*) otes on this position are provided in art B, Assets, able 2 5

A 4 5 2 Annual changes in assets measured at fair value on a recurring basis (Level 3)

				Financial assets measured at fair value through profit or loss		Financial assets	Hedging derivatives	Property, plant and equipment	(€m) Intangible assets
		Total	of w hich: a) financial assets held for trading	of w hich: b) financial assets designated at fair value	of w hich: c) other financial assets mandatorily measured at fair value	measured at fair value through other comprehensive income
	1. Opening balance	20	-	-	20	-	-	-	-
2. Increases		6	-	-	6	-	-	-	-
	2.1. Purchases	-	-	-	-	-	-	-	-
	2.2. Profit recognition:	6	-	-	6	-	-	-	-
	2.2.1. Profit or loss	6	-	-	6	-	-	-	-
	- of w hich gains	-	-	-	-	-	-	-	-
	2.2.2. Equity	-	x	x	x	-	-	-	-
	2.3. Transfers from other levels	-	-	-	-	-	-	-	-
	2.4. Other increases	-	-	-	-	-	-	-	-
	3. Decreases	-	-	-	-	-	-	-	-
	3.1. Sales	-	-	-	-	-	-	-	-
	3.2. Redemptions	-	-	-	-	-	-	-	-
	3.3. Impairment recognition:	-	-	-	-	-	-	-	-
	3.3.1. Profit or loss	-	-	-	-	-	-	-	-
	- of w hich losses	-	-	-	-	-	-	-	-
	3.3.2. Equity	-	x	x	x	-	-	-	-
	3.4. Transfers to other levels	-	-	-	-	-	-	-	-
	3.5. Other decreases	-	-	-	-	-	-	-	-
4. Closing balance		26	-	-	26	-	-	-	-

n the period under review, the change of €6 million relates to the increase in fair value of eries C Visa ncorporated Convertible articipating referred tocks

A 4 5 4 Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis: breakdown by

fair value level

								(€m)
			Total at 31.12.2023	Total at 31.12.2022
Assets/Liabilities not measured at fair value or measured at fair value on a non-recurring basis	Carrying amount	Level 1	Level 2	Level 3	Carrying amount	Level 1	Level 2	Level 3
1. Financial assets measured at amortised cost 2. Property, plant and equipment held for investment purposes 3. Non-current assets and disposal groups held for sale	44,562 - -	25,231 - -	4,856 - -	12,394 - -	46,576 - -	20,927 - -	4,082 - -	17,519 - -
Total	44,562	25,231	4,856	12,394	46,576	20,927	4,082	17,519
1. Financial liabilities measured at amortised cost 2. Liabilities associated with non-current assets held for sale and discontinued operations	90,963 -	- -	7,996 -	82,747 -	98,944 -	- -	9,776 -	88,819 -
Total	90,963	-	7,996	82,747	98,944	-	9,776	88,819

n determining the fair values shown in the table, the following criteria were used:

• debt securities measured at amortised cost were recognised applying the same rules as those used in the fair value measurement of financial assets measured at fair value through other comprehensive income; these instruments are shown in Level 1 of the fair value hierarchy;
• the fair value of repurchase agreements was measured using the discounted cash flow techniques described in paragraph A 4 1; these financial instruments are shown in Level 2 of the fair value hierarchy;
• the carrying amount of other financial assets and liabilities represents a reasonable approximation of fair value and is shown in the column corresponding to Level 3 in the fair value hierarchy

he table does not include tax credits Law no 77/2020 measured at amortised cost at 31 December 2023 with a carrying amount of €7,912 million (€8,600 million at 31 December 2022) and a fair value of €7,434 million (€7,824 million at 31 December 2022) his fair value is determined using discounted cash flow techniques, described in ection A 4 1, and corresponds to Level 3 of the fair value hierarchy

A.5 – INFORMATION ON DAY ONE PROFIT/LOSS

his form of profit or loss is not applicable to Banco osta RFC

PART B – INFORMATION ON THE STATEMENT OF FINANCIAL POSITION

ASSETS

SECTION 1 – CASH AND CASH EQUIVALENTS – ITEM 10

1 1 Cash and cash equivalents: breakdown

		(€m)
	Total at 31.12.2023	Total at 31.12.2022
a) Cash b) Current accounts and demand deposits at Central banks	3,969 756	3,984 1,885
c) Current accounts and demand deposits at banks	7	5
Total	4,732	5,874

"Cash" is comprised of cash at post office counters and companies that provide cash transportation services, consisting of cash deposits on postal current accounts, postal savings products ( nterest-bearing ostal Certificates and ostal avings Books) or advances obtained from the reasury to fund post office operations his cash may only be used in settlement of these obligations Cash and cash equivalents in hand are held at post offices (€1,358 million) and service companies32F 333 (€2,611 million) Cash includes foreign banknotes equivalent to €60 million

³³³ They carry out transport and custody of valuables awaiting payment to the State Treasury.

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

SECTION 2 – FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS – ITEM 20

Banco osta RFC had no financial instruments in the trading book either at 31 December 2023 or 31 December 2022 Banco osta RFC entered into transactions to acquire and immediately dispose of debt securities and equities on behalf of certain customers

here are no financial assets measured at fair value under the fair value option in portfolio at 31 December 2023 and 31 December 2022

2 5 Other financial assets mandatorily measured at fair value: breakdown by type

							(€m)
Items/Amounts			Total at 31.12.2023		Total at 31.12.2022
		Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
1.	Debt securities	-	-	-	-	-	-
	1.1 Structured securities	-	-	-	-	-	-
	1.2 Other debt securities	-	-	-	-	-	-
2.	Equity instruments	-	-	26	-	20	20
3.	UCIs	-	-	-	-	-	-
4.	Loans	-	-	-	-	-	-
	4.1 Repurchase agreements	-	-	-	-	-	-
	4.2 Other	-	-	-	-	-	-
Total		-	-	26	-	20	20

quity instruments refer to the fair value of 32,059 Visa ncorporated preference shares ( eries C Convertible articipating referred tock) hese shares are convertible at the rate of 3 6253F ³³⁴ ordinary shares for each C share, minus a suitable illiquidity discount

he overall change in fair value during the year is a positive €6 million and is recorded in profit or loss under " tem 110 rofits (Losses) on other financial assets and liabilities measured at fair value through profit or loss"

On 1 March 2023, the forward sale of 198,000 Visa ncorporated ordinary shares outstanding at 31 December 2022 was settled without exchange of the underlying, the economic effect of which, in the amount of approximately €2 million, was recognised in " tem 80 rofits/(Losses) on trading"

n addition, two separate forward sales contracts were concluded during the financial year 2023:

• the forward sale of 101,900 Visa ncorporated ordinary shares34F ³³⁵, settled on 3 April 2023, for a total consideration of €20,8 million with insignificant effects on the statement of profit or loss;
• the outstanding forward sale of 95,000 Visa ncorporated ordinary shares with a total consideration of €20,5 million and a settlement date of 3 March 202535F ³³⁶ Fair value fluctuations in the year under review amounted to a negative €2,6 million, and have been recognised in profit or loss in " tem 80 - rofits/(Losses) on trading"

³³⁴ Until the assigned shares are fully converted into ordinary shares, the share exchange ratio may be reduced if Visa Europe Ltd. incurs liabilities that, at the reporting date, were considered as merely contingent.

³³⁵ On 20 March 2023, the 1,019 shares of eries A referred tock held at 31 December 2022 were converted into ordinary shares, based on the conversion ratio of 100 ordinary shares for every share of Class A referred tock

³³⁶ he ordinary shares involved in the forward sale amount to approximately 26,207 Visa ncorporated (series C) preference shares held in portfolio at the applicable conversion rate at 31 December 2023

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

2 6 Other financial assets mandatorily measured at fair value: breakdown by debtor/issuer

				(€m)
			Total at	Total at
			31.12.2023	31.12.2022
1.		Equity instruments	26	40
		of which: banks	-	-
		of which: other financial companies	26	40
		of which: non-financial companies	-	-
2.		Debt securities	-	-
	a)	Central banks	-	-
	b)	Public Administration entities	-	-
	c)	Banks	-	-
	d)	Other financial companies	-	-
		of which: insurance companies	-	-
	e)	Non-financial companies	-	-
3.	UCIs		-	-
4.		Loans	-	-
	a)	Central banks	-	-
	b)	Public Administration entities	-	-
	c)	Banks	-	-
	d)	Other financial companies	-	-
		of which: insurance companies	-	-
	e)	Non-financial companies	-	-
	f)	Households	-	-
	Total		26	40

SECTION 3 – FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – ITEM 30

3 1 Financial assets measured at fair value through other comprehensive income: breakdown by type

						(€m)
		Total at 31.12.2023			Total at 31.12.2022
Items/Amounts	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
1. Debt securities	32,901	168	-	33,017	144	-
1.1 Structured securities	-	-	-	-	-	-
1.2 Other debt securities	32,901	168	-	33,017	144	-
2. Equity instruments	-	-	-	-	-	-
3. Loans	-	-	-	-	-	-
Total	32,901	168	-	33,017	144	-

nvestments in debt securities are recognised at fair value, for €33,069 million (of which €253 million in accrued interest)

			(€m)
	Items/Amounts	Total at 31.12.2023	Total at 31.12.2022
	1. Debt securities	33,069	33,161
a)	Central banks	-	-
b)	Public Administration entities	33,069	33,161
c)	Banks	-	-
d)	Other financial companies	-	-
	of which: insurance companies	-	-
e)	Non-financial companies	-	-
	2. Equity instruments	-	-
a)	Banks	-	-
b)	Other issuers:	-	-
	- other financial companies	-	-
	of which: insurance companies	-	-
	- non-financial companies	-	-
	- other	-	-
3. Loans		-	-
a)	Central banks	-	-
b)	Public Administration entities	-	-
c)	Banks	-	-
d)	Other financial companies	-	-
	of which: insurance companies	-	-
e)	Non-financial companies	-	-
f)	Households	-	-
Total		33,069	33,161

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

3 2 Financial assets measured at fair value through other comprehensive income: breakdown by debtor/issuer

Debt securities issued by governments include urozone fixed income government bonds, represented by talian government bonds with a nominal value of €34,859 million otal fair value fluctuation for the period was positive for €2,321 million, with gains of €1,938 million recognised in the relevant equity reserve in relation to the portion of the portfolio not hedged by fair value hedges, and a gain of €383 million recognised through profit and loss in relation to the hedged portion he decrease in this item is mainly due to higher sales/reimbursements compared to the purchases made during the year, partially offset by the positive fair value fluctuation mentioned above

ecurities with a nominal value of €6,335 million are encumbered as follows:

• €4,385 million, carried at fair value for €4,093 million ( art B, Other nformation, able 3), and delivered to counterparties in connection with repurchase agreements concluded prior to 31 December 2023;
• €35 million carried at fair value for €35 million and delivered to the Bank of taly as collateral in relation to the clearing service offered by the Bank of taly for the execution of epa Direct Debits payments;
• €1,915 million, carried at fair value for €1,898 million, and delivered to the Bank of taly to secure an intraday credit line

(€m)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

3 3 Financial assets measured at fair value through other comprehensive income: gross amount and overall impairment losses

										(€m)
			Gross amount					Total impairment losses
	Stage 1		Stage 2	Stage 3	Acquired or	Stage 1	Stage 2	Stage 3	Acquired or	Total partial
		of which: Instruments with low credit risk			originated impaired financial assets				originated impaired financial assets	write-offs*
Debt securities	33,088	-	-	-	-	19	-	-	-	-
Loans	-	-	-	-	-	-	-	-	-	-
Total at 31.12.2023	33,088	-	-	-	-	19	-	-	-	-
Total at 31.12.2022	33,177	-	-	-	-	16	-	-	-	-

(*) amount reported for disclosure purposes

Fixed income instruments recognised at FV OC are adjusted for impairment through the relevant equity reserve, with a matching entry in profit or loss Accumulated impairments at 31 December 2023 amount to €19 million (€16 million at 31 December 2022)

SECTION 4 – FINANCIAL ASSETS MEASURED AT AMORTISED COST – ITEM 40

			Total at 31.12.2023						Total at 31.12.2022
		Carrying amount			Fair Value			Carrying amount			Fair Value
Transaction type/Amounts	Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets	Level 1	Level 2	Level 3	Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets	Level 1	Level 2	Level 3
A. Due from Central Banks	-	-	-				-	-	-
1. Time deposits	-	-	-	x	x	x	-	-	-	x	x	x
2. Compulsory reserve	-	-	-	x	x	x	-	-	-	x	x	x
3. Repurchase agreements	-	-	-	x	x	x	-	-	-	x	x	x
4. Other	-	-	-	x	x	x	-	-	-	x	x	x
B. Due from banks	976	-	-				1,500	-	-
1. Loans	976	-	-				1,500	-	-
1.1 Current accounts	-	-	-	x	x	x	-	-	-	x	x	x
1.2 Time deposits	-	-	-	x	x	x	-	-	-	x	x	x
1.3 Other loans:	976	-	-	x	x	x	1,500	-	-	x	x	x
- Reverse repurchase agreements	150	-	-	x	x	x	-	-	-	x	x	x
- Lease financing	-	-	-	x	x	x	-	-	-	x	x	x
- Other	826	-	-	x	x	x	1,500	-	-	x	x	x
2. Debt securities	-	-	-				-	-	-
2.1 Structured securities	-	-	-	x	x	x	-	-	-	x	x	x
2.2 Other debt securities	-	-	-	x	x	x	-	-	-	x	x	x
Total	976	-	-	-	150	826	1,500	-	-	-	-	1,500

4 1 Financial assets measured at amortised cost: breakdown of due from banks by type

"Other loans, Reverse repurchase agreements" refers to repurchase agreements secured by securities for a total nominal value of €147 million, entered into with leading financial operators At 31 December 2023 the fair value of reverse repurchase agreements is €150 million and is shown in Level 2 of the fair value hierarchy

"Other loans, Other" includes cash collateral held by counterparties for interest rate swaps (€24 million as collateral pursuant to Credit upport Annexes), entered into for cash flow and fair value hedging purposes by Banco osta RFC, and repurchase agreements (€772 million as collateral pursuant to specific Global Master Repurchase Agreements) he yearon-year decrease in amount due for guarantee deposits is mainly due to the reduction in amounts paid to counterparties with whom repo transactions are in place as a result of the combined effect of the change in the interest rate curve, which generated an increase in the fair value of the securities as collateral, and the lower amount of transactions outstanding at the date

n addition, "Other loans, Other" includes trade receivables for €30 million arising from contracts with customers, accounted for in accordance with FR 15 (€32 million at 31 December 2022) mainly relating to financial services and personal loan distribution

4 2 Financial assets measured at amortised cost: breakdown of due from customers by type

												(€m)
			Total at 31.12.2023						Total at 31.12.2022
		Carrying amount			Fair value			Carrying amount			Fair value
Transaction type/Amounts	Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets	Level 1	Level 2	Level 3	Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets	Level 1	Level 2	Level 3
1. Loans	13,188	-	-				17,377	-	-
1.1 Current accounts	6	-	-	x	x	x	7	-	-	x	x	x
1.2 Reverse repurchase agreements	1,619	-	-	x	x	x	1,358	-	-	x	x	x
1.3 Mortgages	-	-	-	x	x	x	-	-	-	x	x	x
1.4 Credit cards, personal and salary loans	-	-	-	x	x	x	-	-	-	x	x	x
1.5 Lease financing	-	-	-	x	x	x	-	-	-	x	x	x
1.6 Factoring	-	-	-	x	x	x	-	-	-	x	x	x
1.7 Other loans	11,563	-	-	x	x	x	16,012	-	-	x	x	x
2. Debt securities	30,398	-	-				27,699	-	-
2.1 Structured securities	30,398	-	-	x	x	x	-	-	-	x	x	x
2.2 Other debt securities	-	-	-	x	x	x	27,699	-	-	x	x	x
Total	43,586	-	-	25,231	4,706	11,568	45,076	-	-	20,927	4,082	16,019

A description of "Loans" is provided below

At 31 December 2023 there are reverse repurchase agreements of €3,956 million (€4,575 million at 31 December 2022) entered into with Cassa di Compensazione e Garanzia pA (hereinafter CC&G) for the temporary use of liquidity from private funding hese transactions are guaranteed by securities for a total nominal amount of €3,727 million he fair value of reverse repurchase agreements is shown in Level 2 of the fair value hierarchy

Financial assets and liabilities relating to repurchase agreements managed through the CC&G that meet the requirements of A 32 are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022)

n addition, further reverse repurchase agreements in the amount of €361 million were concluded with CC&G in December 2023, which were settled in early January 2024

"Other loans" primarily consist of:

• €9,131 million, of which €200 million for interest accrued and collected in on public customers' current account deposits with the M F (€12,124 million at 31 December 2022), which earn a variable rate of return, calculated on a basket of government securities36F 337 he deposit has been adjusted to reflect accumulated impairments of €5 million, to take account of the risk of counterparty default (substantially unchanged compared to 31 December 2022) he decrease of €2,993 million compared to the previous year was mainly due to the typical operations of some customers in the ublic Administration, which generated a contraction in deposits from postal current accounts During the financial year 2023, hedging derivative contracts were concluded on the 10-year index-linked remuneration component he hedging transaction (Cash flow hedge) was carried out through forward purchases of the 10-year B with settlement of the differential between the pre-set price of the security and its market value his operation, which ended on 31 December 2023, generated positive effects of €5 million recognised in the statement of profit or loss under " tem 10 nterest and similar income";
• €891 million, of which €18 million for interest accrued, deposits at the M F (the "Buffer account"), remunerated at the uro hort erm Rate ( R)37F ³³⁸ he decrease of €1,106 million compared to the previous year is mainly due to alternative investments with yields on 31 December 2023 higher than the R rate;
• €427 million from amounts due for guarantee deposits, of which: (i) €58 million for sums paid to counterparties with which interest rate swap transactions are outstanding (collateral provided for in specific Credit upport Annexes); (ii)

³³⁷ The variable rate in question is calculated as follows: 40% is based on the average return on 6-month BOTs recognised monthly and the remaining 60% is based on the average ten-year BTP return recognised monthly. ³³⁸ Rate calculated and published by the ECB using a new methodology consistent with ECB Regulation (EU) no. 1333/2014 of 26 November 2014 and based on uncollateralised fixed-rate overnight deposit facility transactions

€323 million for sums paid to CC&G for outstanding repo transactions (€234 million) and as a pre-financed contribution to the Default Fund38F ³³⁹ (€89 million); (iii) €46 million for sums paid as collateral within the framework of clearing systems with central counterparties for over-the-counter (O C) transactions39F ³⁴⁰ in derivatives;

• €370 million in amounts receivable from oste taliane pA's functions outside the ring-fence, €355 million of which relates to oste taliane pA's Finance function's intersegment financial account, used for the processing of payments to and from third parties;
• €324 million in amounts due from oste Vita for commissions on the placement of insurance policies;
• €73 million in amounts due from oste ay for product placement services related to the payments business;
• €247 million in fees receivable from Cassa Depositi e restiti during the year in connection with the postal savings service pertaining to the year he increase of €226 million compared to 31 December 2022 reflects the fees to be invoiced accrued at the relevant date, based on the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023340F ³⁴¹;
• €11 million in amounts due for the payment of pensions on behalf of (the ational nstitute of ocial ecurity)

Receivables arisen from contracts with customers, which fall within the scope of FR 15, amount to €965 million (€774 million at 31 December 2022) hese are mainly due to financial services, pension payments, interest on postal deposits, and personal loan distribution, net of any loss provisions for €45 million (€41 million at 31 December 2022) nformation on the dynamics of total value adjustments is described in art , ection 1

"Other debt securities" include talian fixed income government bonds and securities guaranteed by the talian tate for €30,877 million heir carrying amount of €30,398 million reflects the amortised cost of unhedged fixed income instruments, totalling €19,325 million, the amortised cost of fair-value hedged fixed income instruments, totalling €13,017 million, decreased by €1,944 million to take into account the effects of the hedge (€2,714 million related to 2022) he value of these securities was adjusted to take into account the related impairments Accumulated impairments at 31 December 2023 amount to approximately €18 million (€13 million at 31 December 2022)

At 31 December 2023 the total fair value of these instruments, inclusive of €233 million in accrued interest, amounts to €28,318 million, of which €25,231 million classified in Level 1 of the fair value hierarchy and €3,087 million classified in Level 2

ecurities with a nominal value of €7,522 million are encumbered as follows:

• €6,679 million, carried at amortised cost for €6,822 million ( art B, Other nformation, able 3), and delivered to counterparties in connection with repurchase agreements concluded at 31 December 2023;
• €843 million, carried at amortised cost for €938 million, and delivered to the Bank of taly to secure an intraday credit line

³³⁹ A guarantee fund established with payments from participants in the derivative, equity and bond markets, as a further guarantee for the transactions carried out. The fund can be used to meet the charges arising from any participant default.

³⁴⁰ These are transactions carried out outside the regulated securities markets and therefore not subject to any specific regulation concerning the organisation and operation of the market itself.

³⁴¹ Deed supplementing and amending the Agreement of 24 December 2021, in force until 31 December 2024.

4 3 Financial assets measured at amortised cost: breakdown of amounts due from customers by debtor/issuer

Transaction type/Amounts
			Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets	Stage 1 and 2	Stage 3	Acquired or originated impaired financial assets
1. Debt securities			30,398	-	-	27,699	-	-
a) Public Administration entities			27,509	-	-	24,708	-	-
b) Other financial companies of which: insurance companies			2,889 -	- -	- -	2,991 -	- -	- -
c) Non-financial companies			-	-	-	-	-	-
2. Loans to:			13,188	-	-	17,377	-	-
a) Public Administration entities			10,070	-	-	14,176	-	-
b) Other financial companies of which: insurance companies			2,728 332	- -	- -	2,823 288	- -	- -
c) Non-financial companies			384	-	-	372	-	-
d) Households			6	-	-	6	-	-
Total			43,586	-	-	45,076	-	-
4 4 Financial assets measured at amortised cost: gross amount and total impairment losses
								(€m)
	Stage 1	Gross amount Stage 2	Stage 3	Acquired or	Stage 1	Total impairment losses Stage 2 Stage 3	Acquired or
	of which: Instruments with low			originated impaired financial assets			originated impaired financial assets	Total partial write-offs*
Debt securities	credit risk 30,416	-	- -	-	18	-	-	-
Loans Total at 31.12.2023 Total at 31.12.2022	13,174 43,590 45,788	- - -	1,053 - 1,053 - 863 -	- - -	5 23 18	58 58 57	- - -	- - -
								(€m)
		Fair value at 31.12.2023		Notional amount* at		Fair value at 31.12.2022		Notional amount* at
(*) amount reported for disclosure purposes SECTION 5 – HEDGING DERIVATIVES – ITEM 50 5 1 Hedging derivatives by type of hedge and level	Level 1	Level 2	Level 3	31.12.2023	Level 1	Level 2	Level 3	31.12.2022
A. Financial derivatives 1) Fair value	- -	4,257 4,252	- -	19,665 19,215	- -	6,109 5,759	- -	27,646 25,840
2) Cash flow	-	5	-	450	-	350	-	1,806
3) Foreign investments	-	-	-	-	-	-	-	-
B. Credit derivatives	-	-	-	-	-	-	-	-
1) Fair value 2) Cash flow	- -	- -	- -	- -	- -	- -	- -	- -

4 4 Financial assets measured at amortised cost: gross amount and total impairment losses

										(€m)
		Gross amount				Total impairment losses
	Stage 1		Stage 2 Stage 3		Acquired or	Stage 1	Stage 2	Stage 3	Acquired or	Total partial
	of which: credit risk	Instruments with low			originated impaired financial assets				originated impaired financial assets	write-offs*
Debt securities	30,416	-	-	-	-	18	-	-	-	-
Loans	13,174	-	1,053	-	-	5	58	-	-	-
Total at 31.12.2023	43,590	-	1,053	-	-	23	58	-	-	-
Total at 31.12.2022	45,788	-	863	-	-	18	57	-	-	-

SECTION 5 – HEDGING DERIVATIVES – ITEM 50

5 1 Hedging derivatives by type of hedge and level

								(€m)
		Fair value at 31.12.2023		Notional amount* at	Fair value at 31.12.2022
	Level 1	Level 2	Level 3	31.12.2023	Level 1	Level 2	Level 3	amount* at 31.12.2022
A. Financial derivatives	-	4,257	-	19,665	-	6,109	-	27,646
1) Fair value	-	4,252	-	19,215	-	5,759	-	25,840
2) Cash flow	-	5	-	450	-	350	-	1,806
3) Foreign investments	-	-	-	-	-	-	-	-
B. Credit derivatives	-	-	-	-	-	-	-	-
1) Fair value	-	-	-	-	-	-	-	-
2) Cash flow	-	-	-	-	-	-	-	-
Total	-	4,257	-	19,665	-	6,109	-	27,646

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

5 2 Hedging derivatives: breakdown by hedged portfolio and type of hedge

				Fair Value				Cash flow		(€m)
Transaction type/Type of hedge and interest		Micro
		equity instruments and equity indexes	currencies and gold	credit	commodities	other	Macro	Micro	Macro	Foreign investments
1. Financial assets measured at fair value through other comprehensive income	2,025	-	-	-	x	x	x	5	x	x
2. Financial assets measured at amortised cost	2,227	x	-	-	x	x	x	-	x	x
3. Portfolio	x	x	x	x	x	x	-	x	-	x
4. Other transactions	-	-	-	-	-	-	x	-	x	-
Total assets	4,252	-	-	-	-	-	-	5	-	-
1. Financial liabilities	-	x	-	-	-	-	x	-	x	x
2. Portfolio	x	x	x	x	x	x	-	x	-	x
Total liabilities	-	-	-	-	-	-	-	-	-	-
1. Expected transactions	x	x	x	x	x	x	x	-	x	x
2. Portfolio of financial assets and liabilities	x	x	x	x	x	x	-	x	-	-

SECTION 6 – ADJUSTMENTS FOR CHANGES IN HEDGED FINANCIAL ASSETS PORTFOLIO – ITEM 60

o macro-hedges have been arranged at the reporting date

SECTION 7 – INVESTMENTS – ITEM 70

here are no investments in subsidiaries, joint arrangements or companies subject to significant influence

SECTION 8 – PROPERTY, PLANT AND EQUIPMENT – ITEM 80

Banco osta does not own property, plant and equipment either for operating or investment purposes

SECTION 9 – INTANGIBLE ASSETS – ITEM 90

here are no intangible assets

SECTION 10 – TAX ASSETS AND LIABILITIES – ASSETS ITEM 100 AND LIABILITIES ITEM 60

Current tax assets and liabilities form part of intersegment relations and are shown in "Other assets" ( tem 120 in Assets) and "Other liabilities" ( tem 80 in Liabilities), as they are settled with oste taliane pA's functions outside the ring-fence, within the scope of internal relations with oste taliane pA, as the sole taxable entity

Deferred tax assets and liabilities are analysed below:

10 1 Deferred tax assets: breakdown

										(€m)
Description	Financial assets and liabilities		Hedging derivatives		Provisions for doubtful debts		Provisions for risks and charges		Total IRES	Total IRAP
	IRES	IRAP	IRES	IRAP	IRES IRAP		IRES	IRAP
Deferred tax assets through profit or loss	1	2	-	-	4	-	23	4	28	6
Deferred tax assets through equity	381	72	130	25	-	-	-	-	511	97
2023 total	382	74	130	25	4	-	23	4	539	103
Deferred tax assets through profit or loss	-	1	-	-	7	-	29	5	36	6
Deferred tax assets through equity	786	147	153	29	-	-	-	-	939	176
2022 total	786	148	153	29	7	-	29	5	975	182

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

10 2 Deferred tax liabilities: breakdown

						(€m)
Description		Financial assets and liabilities			Total IRES	Total IRAP
	IRES	IRAP	IRES	IRAP
Deferred tax liabilities through profit or loss	-	1	-	-	-	1
Deferred tax liabilities through equity	194	37	29	5	223	42
2023 total	194	38	29	5	223	43
Deferred tax liabilities through profit or loss	-	1	-	-	-	1
Deferred tax liabilities through equity	163	30	26	5	189	35
2022 total	163	31	26	5	189	36

10 3 Changes in deferred tax assets through profit or loss

		(€m)
	Total at 31.12.2023	Total at 31.12.2022
1. Opening balance	42	55
2. Increases 2.1 Deferred tax assets recognised in the year a) relating to previous years b) due to changes in accounting policies c) write-backs d) other	1 1 1 - - -	1 1 - - 1 -
2.2 New taxes or tax rate increases 2.3 Other increases	- -	- -
3. Decreases 3.1 Deferred tax assets derecognised in the year a) reversals b) write-downs of non-recoverable items c) due to changes in accounting policies d) other 3.2 Reductions of tax rates 3.3 Other decreases: a) transformation into tax credit pursuant to Law 214/2011 b) other	(9) (9) (8) - - (1) - - - -	(14) (14) (14) - - - - - - -
4. Closing balance	34	42

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

10 4 Changes in deferred tax liabilities through profit or loss

(€m)
	Total at 31.12.2023	Total at 31.12.2022
1. Opening balance	(1)	(1)
2. Increases 2.1 Deferred tax liabilities recognised in the year a) relating to previous years b) due to changes in accounting policies c) other 2.2 New taxes or tax rate increases 2.3 Other increases	- - - - - - -	(1) (1) - - (1) - -
3. Decreases 3.1 Deferred tax liabilities derecognised in the year a) reversals b) due to changes in accounting policies c) other 3.2 Reductions of tax rates 3.3 Other decreases	- - - - - - -	1 1 1 - - - -
4. Closing balance	(1)	(1)

10 5 Changes in deferred tax assets through equity

		(€m)
	Total at	Total at
	31.12.2023	31.12.2022
1. Opening balance	1,115	228
2. Increases	11	927
2.1 Deferred tax assets recognised in the year	10	927
a) relating to previous years	-	-
b) due to changes in accounting policies	-	-
c) other	10	927
2.2 New taxes or tax rate increases	1	-
2.3 Other increases	-	-
3. Decreases	(518)	(40)
3.1 Deferred tax assets derecognised in the year	(518)	(40)
a) reversals	(66)	(3)
b) write-downs of non-recoverable items	-	-
c) due to changes in accounting policies	-	-
d) other	(452)	(37)
3.2 Reductions of tax rates	-	-
3.3 Other decreases	-	-
4. Closing balance	608	1,115

10 6 Changes in deferred tax liabilities through equity

		(€m)
	Total at	Total at
	31.12.2023	31.12.2022
1. Opening balance	(224)	(669)
2. Increases 2.1 Deferred tax liabilities recognised in the year	(150) (150)	(172) (172)
a) relating to previous years b) due to changes in accounting policies	-	-
c) other	- (150)	- (172)
2.2 New taxes or tax rate increases 2.3 Other increases	- -	- -
3. Decreases	109	617
3.1 Deferred tax liabilities derecognised in the year	109	617
a) reversals	91	158
b) due to changes in accounting policies	-	-
c) other	18	459
3.2 Reductions of tax rates	-	-
3.3 Other decreases	-	-
4. Closing balance	(265)	(224)

he net charge due to movements in deferred tax assets and liabilities through equity is the tax effect on reserves described in art D

he negative change in deferred tax assets and liabilities recognised in equity mainly reflects the increasing trend in fair value reserves related to financial assets measured at fair value through other comprehensive income

SECTION 11 – NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS AND ASSOCIATED LIABILITIES - ASSETS ITEM 110 AND LIABILITIES ITEM 70

here are no non-current assets held for sale or discontinued operations at the reporting date

SECTION 12 – OTHER ASSETS – ITEM 120

12 1 Other assets: breakdown

(€m)
Items/Amounts	Total at 31.12.2023	Total at 31.12.2022
Tax credits Law no. 77/2020	7,912	8,600
Items in process	552	583
Tax receivables from revenue agency	453	408
Current tax assets receivable from Poste Italiane SpA outside the ring-fence	39	43
Other items	1,901	1,886
Total	10,857	11,520

ax credits Law no 77/2020, amounting to €7,912 million, relate to purchases made by oste taliane pA and allocated to Banco osta against free capital resources as well as resources subject341F ³⁴² and not subject to the obligation to use them

³⁴² With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits.

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in accordance with the provisions of the Relaunch Decree (Law Decree no 34/2020, later converted into Law no 77/2020), which introduced tax benefits to aid economic recovery following the Covid-19 health emergency

hese receivables are measured at amortised cost if they are acquired to be used by oste taliane pA for the main purpose of offsetting social security or tax liabilities, on the basis of the provisions of the regulations issued with reference to the characteristics of the individual receivables, while they are measured at fair value through other comprehensive income if they are also acquired for the purpose of sale by oste taliane pA to third parties

Changes in these receivables during 2023 are shown below:

Total at 31.12.2023 1. Opening balance 8,600 2. Increases 828 2.1 Purchases 519 2.2 Positive changes in fair value - 2.3 Transfers from other portfolios - 2.4 Other movements 309	(€m)
3. Decreases (1,516)
3.1 Sales -
3.2 Redemptions (1,516)
3.3 Negative changes in fair value -
3.4 Transfers to other portfolios -
3.5 Other movements -
4. Closing balance 7,912

he main changes during the year relate to:

• purchases of €519 million, entirely related to receivables measured at amortised cost;
• accrued income for the period of €309 million relating to receivables measured at amortised cost;
• reimbursements for capital outside ring-fence in the amount of €1,516 million
• At 31 December 2023, the fair value342F ³⁴³ of tax credits at amortised cost is €7,434 million

he sub-item " tems in process" includes:

• €76 million in withdrawals from Banco osta A Ms yet to be debited to customer accounts or awaiting settlement;
• assignments in the course of settlement with the banking system in the amount of €39 million;
• account maintenance and custody fees of €12 million to be debited to customers;
• amounts to be charged to oste ay pA for €185 million (mainly in the first few days of 2024)

ax assets primarily relate to payments on account to the tax authorities, of which €407 million to be recovered from customers for virtual stamp duty payable in 2024 and €30 million for withholding tax on interest paid to current account holders for 2023

"Other items" include mainly:

³⁴³ In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for Level 3.

• €1,752 million in stamp duty accrued to 31 December 2023 payable by holders of outstanding nterest-bearing ostal Certificates34F ³⁴⁴ An equal amount has been recognised in "Other liabilities" as tax payables ( art B, Liabilities, able 8 1) until expiration or early extinguishment of nterest-bearing ostal Certificates, which is the date on which the tax must be paid to the authorities;
• €96 million relating to stamp duty charged to ostal avings Books, which Banco osta RFC pays in virtual form as required by law

Movements in current tax assets and liabilities receivable from and payable to oste taliane pA outside the ring-fence are shown below:

						(€m)
		Current tax 2023		Current tax 2022
	IRES	IRAP		IRES	IRAP
Description	Assets/(Liabilities) due from and to Poste Italiane outside the ring fence	Assets/(Liabilities) due from and to Poste Italiane outside the ring fence	Total	Assets/(Liabilities) due from and to Poste Italiane outside the ring fence	Assets/(Liabilities) due from and to Poste Italiane outside the ring fence	Total
Opening balance	4	4	8	67	8	75
Payments	198	37	235	107	32	139
on account for the current year	171	36	207	107	32	139
on balance payable for the previous year	27	1	28	-	-	-
Provisions to Profit or loss	(189)	(37)	(226)	(182)	(36)	(218)
current tax	(189)	(37)	(226)	(183)	(36)	(219)
changes in current taxation for previous years	-	-	-	1	-	1
Provisions in Equity	5	-	5	4	-	4
Other	15	-	15	8	-	8
Closing balance	33	4	37	4	4	8
of which:
Current tax assets due from Poste Italiane outside the ring-fence (Item 120 Assets)	35	4	39	36	7	43
Current tax liabilities due to Poste Italiane outside the ring-fence (Item 80 Liabilities)	(2)	-	(2)	(32)	(3)	(35)

Current tax receivables, totalling €39 million, mainly refer to receivables recognised as a result of: (i) the signing of the agreement on the atent Box for the years 2017-2019 (€14 million); (ii) the responses received in respect of two petitions for rulings on the tax effects arising from the application of FR 9 and 15 (€9 million); (iii) the response received in respect of a request for a tax ruling filed mainly relating to the tax recognition of income components arising from the management of postal current accounts (€14 million) hese assets will become offsettable after the submission of the relevant supplementary tax returns

³⁴⁴ Introduced by article 19 of Law Decree 201/2011, converted as amended by Law 214/2011, in accordance with the MEF Decree dated 24 May 2012: Manner of implementation of paragraphs from 1 to 3 of article 19 of Law Decree 201 of 6 December 2011, on stamp duty on current accounts and financial products (Official Journal 127 of 1 June 2012).

LIABILITIES

SECTION 1 – FINANCIAL LIABILITIES MEASURED AT AMORTISED COST – ITEM 10

1 1 Financial liabilities measured at amortised cost: breakdown of amounts due to banks by type

								(€m)
		Total at 31.12.2023			Total at 31.12.2022
Transaction type/Amounts	Carrying	Fair Value			Carrying	Fair Value
	amount	Level 1	Level 2	Level 3	amount	Level 1	Level 2	Level 3
1. Due to Central Banks	-	x	x	x	-	x	x	x
2. Due to banks	10,336	x	x	x	12,849	x	x	x
2.1 Current accounts and demand deposits	307	x	x	x	520	x	x	x
2.2 Time deposits	-	x	x	x	-	x	x	x
2.3 Loans	7,926	x	x	x	8,689	x	x	x
2.3.1 Repurchase agreements	7,926	x	x	x	8,689	x	x	x
2.3.2 Other	-	x	x	x	-	x	x	x
2.4 Obligations to repurchase equity instruments	-	x	x	x	-	x	x	x
2.5 Lease payables	-	x	x	x	-	x	x	x
2.6 Other payables	2,103	x	x	x	3,640	x	x	x
Total	10,336	-	7,705	2,410	12,849	-	8,348	4,160

At 31 December 2023, €7,926 million is due to banks under the terms of repurchase agreements entered into with primary financial institutions involving securities with a total nominal value of €8,475 million hese regard €7,102 million in Long erm Repos and €824 million in loans, with the resulting proceeds invested in talian fixed income government securities and utilised as funding for incremental deposits used as collateral At 31 December 2023, repurchase agreements with a nominal value of €3,996 million were the subject of fair value hedge transactions executed to hedge interest rate risk

Repurchase agreements are classified as fair value Level 2 transactions, whereas the fair value of other types of transaction included in this line item approximates to their carrying amounts and they are classified as Level 3

he sub-item "Other payables" includes €2,102 million in guarantee deposits provided to counterparties in relation to interest rate swaps (with €2,082 million in collateral provided by specific Credit upport Annexes), in relation to Banco osta RFC's cash flow hedge and fair value hedge policies adopted and repurchase agreements (€20 million as collateral in accordance with specific Global Master Repurchase Agreements) he decrease in this sub-item compared to 31 December 2022 is mainly attributable to the reduction of fair value hedge derivatives following early extinguishment transactions

Banco osta RFC has uncommitted overnight lines of credit amounting to €960 million, overdraft facilities for €184 million and arrangements for the issue of personal guarantees for €411 million granted to oste taliane pA, undrawn at 31 December 2023

n addition, from 5 December 2023, it may access a 3-year committed facility granted by Cassa Depositi e restiti for repurchase agreements up to a maximum of €3 billion, undrawn at 31 December 2023

Finally, the Bank of taly has granted Banco osta RFC access to intraday credit in order to fund intraday interbank transactions Collateral for this credit facility is provided by securities with a nominal value of €2,758 million, undrawn at 31 December 2023

								(€m)
		Total at 31.12.2023			Total at 31.12.2022
Transaction type/Amounts	Carrying		Fair Value		Carrying	Fair Value
	amount	Level 1	Level 2	Level 3	amount	Level 1	Level 2	Level 3
1. Current accounts and demand deposits	72,803	x	x	x	77,767	x	x	x
2. Time deposits	10	x	x	x	-	x	x	x
3. Loans	5,662	x	x	x	5,605	x	x	x
3.1 Repurchase agreements	291	x	x	x	1,436	x	x	x
3.2 Other	5,371	x	x	x	4,169	x	x	x
4. Obligations to repurchase equity instruments	-	x	x	x	-	x	x	x
5. Lease payables	-	x	x	x	-	x	x	x
6. Other payables	2,153	x	x	x	2,723	x	x	x
Total	80,628	-	291	80,327	86,095	-	1,428	84,659

1 2 Financial liabilities measured at amortised cost: breakdown of amounts due to customers by type

he sub-item "Current accounts and demand deposits" includes €10,152 million in postal current accounts held by oste ay pA relating mainly to the deposit of funding from prepaid cards, €695 million in postal current accounts held by osteVita pA and €279 million in current accounts held by oste taliane outside the ring-fence

At 31 December 2023 "Loans, repurchase agreements" amount to €2,627 million, reflecting transactions entered into with CC&G in relation to securities with a nominal amount of €2,999 million hese payables refer to ordinary financing transactions, targeted at investment in talian fixed income government securities and utilised as funding for incremental deposits used as collateral

Financial assets and liabilities relating to repurchase agreements managed through the CC&G that meet the requirements of A 32 are offset he effect of netting at 31 December 2023, already included in the exposure to net balances, amounted to €2,337 million (€3,217 million at 31 December 2022)

n addition, further repurchase agreements in the amount of €616 million were concluded with CC&G in December 2023, which were settled in early January 2024

he sub-item "Loans, Other" consist of the net amount of €5,371 million deposited in the M F account held at the reasury, which breaks down as follows:

• the balance of cash flows for advances, amounting to €5,168 million, represents the net amount payable as a result of advances from the M F to meet cash requirements;
• net cash flow payable for postal savings management of €30 million, due to the excess repayments on deposits made in the last two days of the year in question and settled in the first few days of the following year; at 31 December 2023, the balance consisted of a payable of €124 million owed to Cassa Depositi e restiti and a receivable of €94 million owed to the M F for issues of postal savings bonds attributable to Cassa Depositi e restiti;
• amounts payable in connection with robberies suffered by ost Offices of €157 million, relating to obligations assumed towards the M F on behalf of the reasury as a result of theft and embezzlement; these obligations derive from withdrawals made from the reasury, which are necessary to replenish the cash shortfall due to these criminal events so as to ensure the continuity of the ost Offices' operations;
• amounts payable for operational risks for €16 million regard the portion of advances obtained from M F to fund operations, in relation to which asset under recovery is certain or probable

he sub-item "Other payables" mainly consists of national money orders for €980 million and endorsed cheques in circulation for €407 million and guarantee deposits for €729 million relating to sums received from counterparties with which interest rate swap transactions are in place (collateral provided for by specific Credit upport Annexes)

he Level 2 fair value refers to the repurchase agreements while the fair value of the remaining instruments of this line item approximates to its carrying amount and it is consequently classified as Level 3

1 3 Financial liabilities measured at amortised cost: breakdown of outstanding securities by type here are no securities in issue

SECTION 2 – FINANCIAL LIABILITIES HELD FOR TRADING – ITEM 20

2 1 Financial liabilities held for trading: breakdown by type

										(€m)
	Total at 31.12.2023 Total at 31.12.2022
Transaction type/Amounts	Fair Value Nominal or			Nominal or	Fair Value			Fair Value *
	notional amount	Level 1	Level 2	Level 3		notional amount	Level 1	Level 2	Level 3
	-	-	-	-		-				-
	-	-	-	-		-				-
	-	-	-	-		-
3.1 Bonds	-	-	-	-		-
3.1.1 Structured	-	-	-	-		-				x
3.1.2 Other bonds	-	-	-	-		-				x
3.2 Other securities	-	-	-	-		-
3.2.1 Structured	-	-	-	-		-				x
3.2.2 Other	-	-	-	-		-				x
	-	-	-	-	-	-	-	-	-	-
		-	-	3
1.1 Trading	x	-	-	-		x				x
1.2 Connected to the fair value option	x	-	-	-		x				x
1.3 Other	x	-	-	3		x				x
		-	-	-
2.1 For trading	x	-	-	-		x				x
2.2 Connected to the fair value option	x	-	-	-		x				x
2.3 Other	x	-	-	-		x				x
	-	-	-	3	-	-	-	-	4	-
	-	-	-	3	-	-	-	-	4	-
	A. On-balance sheet liabilities 1. Due to banks 2. Due to customers 3. Debt securities Total A B. Derivative instruments 1. Financial derivatives 2. Credit derivatives Total B Total (A+B)					Fair Value *	- - x x x x x x x x x x		- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - 4 - - - - - 4 - - - - - - - -

(*) Fair value calculated excluding any changes in value due to changes in the credit standing of the issuer over the date of issue

Financial liabilities held for trading relate to a forward sale agreement for 95,000 ordinary shares of Visa ncorporated (discussed in ection 2 of Assets)

SECTION 3 – FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE – ITEM 30

o financial liabilities are held in portfolio designated at fair value through profit or loss (the "fair value option")

SECTION 4 – HEDGING DERIVATIVES – ITEM 40

4 1 Hedging derivatives by type and level

								(€m)
		Fair value at 31.12.2023		Notional	Fair value at 31.12.2022			Notional
	Level 1	Level 2	Level 3	amount* at 31.12.2023	Level 1	Level 2	Level 3	amount* at 31.12.2022
A. Financial derivatives	-	1,136	-	12,649	-	971	-	11,832
1) Fair value	-	618	-	9,812	-	344	-	6,096
2) Cash flow	-	518	-	2,837	-	627	-	5,736
3) Foreign investments	-	-	-	-	-	-	-	-
B. Credit derivatives	-	-	-	-	-	-	-	-
1) Fair value	-	-	-	-	-	-	-	-
2) Cash flow	-	-	-	-	-	-	-	-
Total	-	1,136	-	12,649	-	971	-	11,832

(*) he settlement price of derivatives involving the exchange of principal (securities or other assets) has been indicated, as required by Bank of taly Circular 262/2005

he increase compared to 31 December 2022 in liabilities for hedging derivative financial instruments is mainly due to new hedging transactions following early extinguishments both with and without sale of the underlying, commented on in art B - ection 5 of Assets

4 2 Hedging derivatives: breakdown by hedged portfolio and type of hedge

				Fair Value				Cash flow
	Micro
Transaction type/Type of hedge	debt securities and interest rates	equity instruments and equity indexes	currencies and gold	credit	commodities	other	Macro	Micro	Macro	Foreign investments
1. Financial assets measured at fair value through other comprehensive income	299	-	-		-	x	x x	518	x	x
2. Financial assets measured at amortised cost	236	x	-		-	x	x x	-	x	x
3. Portfolio	x	x	x		x	x	x -	x	-	x
4. Other transactions	-	-	-		-	-	- x	-	x	-
Total assets	535	-	-	-	-	-	-	518	-	-
1. Financial liabilities	83	x	-		-	-	- x	-	x	x
2. Portfolio	x	x	x		x	x	x -	x	-	x
Total liabilities	83	-	-	-	-	-	-	-	-	-
1. Expected transactions	x	x	x		x	x	x x	-	x	x
2. Portfolio of financial assets and liabilities	x	x	x		x	x	x -	x	-	-

SECTION 5 – ADJUSTMENTS FOR CHANGES IN HEDGED FINANCIAL LIABILITIES PORTFOLIO – ITEM

50

SECTION 6 – TAX LIABILITIES – ITEM 60

SECTION 7 – LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS– ITEM 70

SECTION 8 – OTHER LIABILITIES – ITEM 80

8 1 Other liabilities: breakdown

	Fair Value Cash flow						(€m)
Transaction type/Type of hedge	debt securities and interest rates	equity instruments and equity indexes	currencies and gold	Micro credit		commodities	other	Macro	Micro	Macro	Foreign investments
1. Financial assets measured at fair value through other comprehensive income 2. Financial assets measured at amortised cost 3. Portfolio 4. Other transactions	299 236 x -		- - x - x x - -		- - x -	x x x -	x x x -	x x - x	518 - x -	x x - x	x x x -
Total assets	535	-	-	-		-	-	-	518	-	-
1. Financial liabilities 2. Portfolio	83 x		x - x x		- x	- x	- x	x -	- x	x -	x x
Total liabilities 1. Expected transactions	83 x	-	- x x	-	x	- x	- x	- x	- -	- x	- x
2. Portfolio of financial assets and liabilities	x		x x		x	x	x	-	x	-	-
SECTION 5 – ADJUSTMENTS FOR CHANGES IN HEDGED FINANCIAL LIABILITIES PORTFOLIO – ITEM
50
o macro-hedges have been arranged at the reporting date
SECTION 6 – TAX LIABILITIES – ITEM 60
lease refer to Assets, ection 10
SECTION 7 – LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS– ITEM 70
here are no such liabilities at the reporting date
SECTION 8 – OTHER LIABILITIES – ITEM 80
8 1 Other liabilities: breakdown
											(€m)
Items/Amounts									Total at		Total at
									31.12.2023		31.12.2022
Tax payables to revenue agency									1,969		1,806
Items in process									642		685
- amounts to be credited to Postal Savings Books									230		183
- other									412		502
Due to suppliers									73		114
Amounts due to customers									76		71
Contract liabilities									60		68
Due to Poste Italiane outside the ring-fence for current taxes liabilities									2		35
Amount due to staff									8		8
Other items									3		2
Total									2,833		2,789
he sub-item " ax payables to revenue agency" mainly includes:
• €1,752 million in stamp duty accrued to 31 December 2023 on outstanding nterest-bearing											ostal Certificates in
accordance with the requirements referenced in			art B, Assets, able 12 1;
• €74 million in tax withholdings on current account interest earned by customers

- €1,752 million in stamp duty accrued to 31 December 2023 on outstanding nterest-bearing ostal Certificates in accordance with the requirements referenced in art B, Assets, able 12 1;

" tems in process" refer mainly to domestic credit transfers for €19 million, and to Banco osta's operations for amounts to be credited, mainly in the first few days of 2024, to oste ay for €45 million and to customers for €230 million relating to cheques to be credited to savings books

he sub-item "Due to suppliers" mainly includes €61 million for trade payables to oste ay for collection and payment services under the service contract

"Contract liabilities" are mainly due to the placement of loan products, as shown in the following table:

				(€m)
Description	Balance at 31.12.2022	Increases / (Decreases)	Change due to recognition of revenue for period	Balance at 31.12.2023
Liabilities for fees to be refunded	68	(50)	42	60
Total	68	(50)	42	60

Liabilities for commissions to be retroceded refer to the estimate of the commissions to be retroceded to partners for the contractually agreed early repayment of loan products placed after 1 January 2018

he changes in the sub-item "Current tax liabilities due to oste taliane outside the ring-fence" are commented on in ection 12 of Assets

SECTION 9 – EMPLOYEE TERMINATION BENEFITS – ITEM 90

Movements in employee termination benefits during the year under review are shown below:

9 1 mployee termination benefits: annual changes

			(€m)
		Total at 31.12.2023	Total at 31.12.2022
A.	Opening balance	2	3
B.	Increases B.1 Provisions for the year B.2 Other changes	- -	- - -
	C. Decreases C.1 Benefits paid C.2 Other changes	- -	(1) - (1)
D.	Closing balance	2	2

he current service cost is not applicable to the employee termination benefits attributable to Banco osta RFC, since this cost is recognised in personnel expenses, as the contributions are paid over to pension funds or other social security institutions

he other decreases are due to transfers to the same or other Group companies and actuarial gains

9 2 Other information

Measurement of the liability entails actuarial calculations for which the following assumptions were used in 2023:

Actuarial gains/(losses)

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

		(€m)
	31.12.2023	31.12.2022
Change in demographic assumptions	-	-
Change in financial assumptions	-	-
Other experience-related adjustments	-	(0.6)
Total	-	(0.6)

ensitivity analysis

	Employee termination benefits at 31.12.2023
Inflation rate +0.25%	2
Inflation rate -0.25%	2
Discount rate +0.25%	2
Discount rate -0.25%	2
Turnover rate +0.25%	2
Turnover rate -0.25%	2

Other information

	31.12.2023
Service Cost	-
Average duration of defined benefit plan	10.7

SECTION 10 – PROVISIONS FOR RISKS AND CHARGES – ITEM 100

10 1 rovisions for risks and charges: breakdown

			(€m)
	Items/Amounts	Total at 31.12.2023	Total at 31.12.2022
1.	Provisions for credit risk relating to financial commitments and guarantees given	-	-
2.	Provisions for other commitments and guarantees given	-	-
3.	Provisions for retirement benefits	-	-
4.	Other provisions for risks and charges	163	188
	4.1 litigation	67	78
	4.2 personnel expenses	1	1
	4.3 other	95	109
	Total	163	188

he composition of "Other provisions" is provided in able 10 6, below

10 2 rovisions for risks and charges: annual changes

				(€m)
	Provisions for other commitments and guarantees given	Provisions for retirement benefits	Other provisions for risks and charges	Total
A. Opening balance	-	-	188	188
B. Increases	-	-	8	8
B.1 Provisions for the year	-	-	8	8
B.2 Changes due to passage of time	-	-	-	-
B.3 Changes due to changed discount rates	-	-	-	-
B.4 Other changes	-	-	-	-
C. Decreases	-	-	(33)	(33)
C.1 Uses during the year	-	-	(17)	(17)
C.2 Changes due to changed discount rates	-	-	-	-
C.3 Other changes	-	-	(16)	(16)
D. Closing balance	-	-	163	163

he main changes are commented in the remainder of this section

10 6 rovisions for risks and charges - other provisions

		(€m)
Description	Total at 31.12.2023	Total at 31.12.2022
Litigation	67	78
Provisions for disputes with third parties	67	78
Provision for disputes with staff	-	-
Provisions for personnel expenses	1	1
Other provisions	95	109
Provisions for operational risks	95	109
Total	163	188

Provisions for disputes with third parties regard the present value of expected liabilities deriving from different types of legal and out-of-court disputes with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers Changes during the year relate to net absorptions of a total of €7 million for updating estimated liabilities and uses of €11 million for defined liabilities

Provisions for disputes with staff regard liabilities that may arise following labour litigation and disputes of various types

Provisions for personnel expenses are made to cover expected liabilities arising in relation to the cost of labour, which are certain or likely to occur but whose estimated amount is subject to change

Provisions for operational risks mainly reflects liabilities for risks related to the distribution of postal savings products issued in past years, estimated risks for charges and expenses to be incurred as a result of foreclosures suffered by Banco osta mainly in its capacity as a third-party foreclosing party, adjustments and adjustments of income from prior years and fraud Changes during the year relate to net absorptions of a total of €2 million for updating estimated liabilities and uses of €5 million for defined liabilities

SECTION 11 – REDEEMABLE SHARES – ITEM 120

othing to report

SECTION 12 – EQUITY – ITEMS 110, 130, 140, 150, 160, 170 AND 180

12 4 rofit reserves: other information

At 31 December 2023, the retained earnings reserve amounted to €1,357 million, down by €16 million due to accrued interest expenses on quity instruments

Other reserves are composed of equity reserves for €1,212 million, including the initial reserve of €1,000 million at the time of incorporation of Banco osta RFC, €210 million in additional capital contributions by the same in 2018 and €2 million for incentive plan reserves, described in art

With regard to the availability and distributability of the reserves of Banco osta RFC, please refer to the information provided in paragraph 5, table B 3 - Availability and distributability of reserves - of this section - Poste Italiane's financial statements - of the Annual Report

12 5 quity instruments: breakdown and annual changes

he capital instruments for Banco osta RFC refer to two perpetual subordinated loans with a total nominal value of €450 million granted respectively on 30 June 2021 for €350 million with an 8-year "non-call" period, and on 30 June 2023 for €100 million with a 5-year "non-call" period, both with the aim of strengthening Banco osta's Leverage Ratio (Basel ) and ier 1 ratio34F 345

Here are the main features of the loan taken out on 30 June 2021:

• the loan has no fixed maturity and must be repaid only in the event of the dissolution or liquidation, as specified in the relevant terms and conditions, subject to the right of early redemption (call) in the cases provided for pecifically, the call is scheduled to be made at any time from the First Call Date of 30 June 2029 and at each interest payment date thereafter; a loss-absorption mechanism is envisaged if the C 1 ratio falls below 5 125%;
• the fixed annual coupon is 4 697% until the first Reset Date set for 30 June 2029 From that date, annual interest is determined as a function of the 5-year uro Mid wap rate plus a spread of 472 7 basis points nterest is payable at the option of the issuer and on a non-cumulative basis, commencing 30 December 2021 he issue price was set at 100%

Here are the main features of the loan taken out on 30 June 2023:

• the loan has no fixed maturity and must be repaid only in the event of the dissolution or liquidation, as specified in the relevant terms and conditions, subject to the right of early redemption (call) in the cases provided for pecifically, the call is scheduled to be made at any time from the First Call Date of 30 June 2028 and at each interest payment date thereafter; a loss-absorption mechanism is envisaged if the C 1 ratio falls below 5 125%;
• the fixed annual coupon is 9 55% until the first Reset Date set for 30 June 2028 From that date, annual interest is determined as a function of the 5-year uro Mid wap rate plus a spread of 653 basis points nterest is payable at the option of the issuer and on a non-cumulative basis, commencing 30 December 2023 he issue price was set at 100%

³⁴⁵ Contributions from non-controlling shareholders to BancoPosta RFC are excluded, as they are not provided for in the special regulations governing the ring-fence.

OTHER INFORMATION

1 Commitments and guarantees given (other than those measured at fair value)

						(€m)
		Nominal value on commitments and financial guarantees given
	Stage 1	Stage 2	Stage 3	Acquired or originated impaired	Total at 31.12.2023	Total at 31.12.2022
1. Commitments to disburse funds	-	-	-	-	-	2,260
a) Central banks	-	-	-	-	-	-
b) Public Administration entities	-	-	-	-	-	-
c) Banks	-	-	-	-	-	-
d) Other financial companies	-	-	-	-	-	2,260
e) Non-financial companies	-	-	-	-	-	-
f) Households	-	-	-	-	-	-
2. Financial guarantees given	-	-	-	-	-	-
a) Central banks	-	-	-	-	-	-
b) Public Administration entities	-	-	-	-	-	-
c) Banks	-	-	-	-	-	-
d) Other financial companies	-	-	-	-	-	-
e) Non-financial companies	-	-	-	-	-	-
f) Households	-	-	-	-	-	-
Total	-	-	-	-	-	2,260

3 Assets pledged as collateral for liabilities and commitments

		(€m)
Portfolios	Total at 31.12.2023	Total at 31.12.2022
1. Financial assets measured at fair value through profit or loss 2. Financial assets measured at fair value through other comprehensive income	- 4,093	- 6,246
3. Financial assets measured at amortised cost 4. Property, plant and equipment	6,822 -	7,013 -
of which: property, plant and equipment qualifying as inventories	-	-

"Financial assets measured at fair value through other comprehensive income" and "Financial assets measured at amortised cost" relate to securities used as collateral in repurchase agreements

4 Brokerage and management on behalf of third parties

		(€m)
	Type of services	Amount
1.	Execution of orders on behalf of customers	-
	a) purchase	-
	1. settled	-
	2. not settled	-
	b) sale	-
	1. settled	-
	2. not settled	-
2.	Individual portfolio management	-
3.	Custody and administration of securities	75,743
	a) Third-party securities in custody: associated with depositary bank services (excluding portfolio management)	-
	1. securities issued by the reporting bank	-
	2. other securities	-
	b) third-party securities in custody (excluding portfolio management): other	10,008
	1. securities issued by the reporting bank	-
	2. other securities	10,008
	c) third-party securities deposited with third parties	10,008
	d) own securities deposited with third parties	65,735
4.	Other transactions	259,218
	a) Postal Savings Books	91,649
	b) Interest-bearing Postal Certificates	167,569

he "Custody and administration of third-party securities deposited with third parties" relates to customers' securities held at primary market operators and, to a marginal degree, securities received as collateral With the exception of securities received as collateral, orders received from customers are executed by qualified, designated credit institutions

"Other transactions" include the principal of postal savings deposits accepted for and on behalf of Cassa Depositi e restiti and the M F

5 Financial assets offset in the financial statements or subject to framework master netting agreements or similar arrangements

							(€m)
	Related amounts not subject to offset in the Amount of net Amount of financial financial statements Gross amount of financial assets				Net amount
Technical forms	financial assets (a)	liabilities offset in financial statements (b)	reported in financial statements (c=a-b)	Financial instruments (d)	Cash deposits received as collateral (e)	at 31 December 2023 (f=c-d-e)	Net amount at 31 December 2022
1. Derivatives	4,257	-	4,257	1,068	2,812	377	91
2. Repurchase agreements	4,106	2,337	1,769	1,769	-	-	-
3. Securities lending	-	-	-	-	-	-	-
4. Other	-	-	-	-	-	-	-
Total at 31.12.2023	8,363	2,337	6,026	2,837	2,812	377	x
Total at 31.12.2022	10,684	3,217	7,467	2,555	4,821	x	91

6 Financial liabilities offset in the financial statements or subject to master netting agreements or similar arrangements

							(€m)
	Amount of financial Gross amount of assets offset in		Amount of net financial liabilities		Related amounts not subject to offset in the financial statements	Net amount	Net amount
Technical forms	financial liabilities (a)	financial statements (b)	reported in financial statements (c=a-b)	Financial instruments (d)	Cash deposits provided as collateral (e)	at 31 December 2023 (f=c-d-e)	at 31 December 2022
1. Derivatives	1,136	-	1,136	1,053	83	-	-
2. Repurchase agreements	10,554	2,337	8,217	7,762	455	-	-
3. Securities lending	-	-	-	-	-	-	-
4. Other	-	-	-	-	-	-	-
Total at 31.12.2023	11,690	2,337	9,353	8,815	538	-	x
Total at 31.12.2022	14,313	3,217	11,096	10,183	913	x	-

he above tables have been compiled in accordance with FR 7, which requires a specific disclosure regardless of whether or not the financial instruments have been offset in the financial statements

n particular, the tables show:

• the statement of financial position values, before and after the effects of accounting netting, of repo transactions that meet the conditions necessary for the recognition of such effects;
• the statement of financial position values of derivative and repurchase agreements transactions that do not meet these conditions but are governed by standardised bilateral netting agreements that allow, in the event of counterparty default, the netting of credit and debit positions ( DA and GMRA contracts);
• the value of the collateral attached to them

n order to present the tables in compliance with the requirements of FR 7 and Bank of taly Circular no 262, repurchase agreements are shown at amortised cost, whilst derivative transactions are shown at fair value; the relevant financial guarantees are measured at fair value

PART C – INFORMATION ON PROFIT OR LOSS

SECTION 1 – INTEREST – ITEMS 10 AND 20

1 1 nterest and similar income: breakdown

					(€m)
Items/Technical forms	Debt securities	Loans	Other transactions	FY 2023	FY 2022
1. Financial assets measured at fair value through profit or loss	-	-	-	-	-
1.1 Financial assets held for trading	-	-	-	-	-
1.2 Financial assets measured at fair value	-	-	-	-	-
1.3 Other financial assets mandatorily measured at fair value	-	-	-	-	-
2. Financial assets measured at fair value through other comprehensive income	935	-	x	935	822
3. Financial assets measured at amortised cost	1,346	-	-	1,346	1,023
3.1 Due from banks	35	-	-	35	8
3.2 Due from customers	1,311	-	-	1,311	1,015
4. Hedging derivatives	x	x	182	182	(58)
5. Other assets	x	x	309	309	273
6. Financial liabilities	x	x	x	6	35
Total	2,281	-	491	2,778	2,095
of which: interest income on impaired financial assets	-	-	-	-	-
of which: interest income on financial leases	x	-	x	-	-

he sub-items "Financial assets measured at fair value through other comprehensive income" and "Financial assets measured at amortised cost" mainly include interest accrued on securities portfolios in the amount of €1,716 million and on the deposit with the M F in the amount of €441 million due to deposits on current accounts of the ublic Administration he sub-item "Other assets" includes interest income accrued during the year relating to tax credits Law no 77/2020, as described in " ection 12 - Other assets - tem 120" of art B

he sub-item "Financial liabilities" reflects mainly interest income accruing during the year on repurchase agreement

he increase in this item compared to the previous year is mainly due to the upward shift in the interest rate curve, which resulted in higher income mainly on investements in debt securities and on commitments of public customers' inflows bearing interest at a variable rate as described in art B - ection 4 of Assets n addition, the increase in the item also refers to the positive effects of hedging derivatives described in this section under "Differentials related to hedge transactions"

1 3 nterest expense and similar charges: breakdown

					(€m)
Items/Technical forms	Payables	Securities	Other transactions	FY 2023	FY 2022
1. Financial liabilities measured at amortised cost	(587)	-	-	(587)	(148)
1.1 Due to Central Banks	-	x	x	-	-
1.2 Due to banks	(198)	x	x	(198)	(22)
1.3 Due to customers	(389)	x	x	(389)	(126)
1.4 Debt securities in issue	x	-	x	-	-
2. Financial liabilities held for trading	-	-	-	-	-
3. Financial liabilities measured at fair value	-	-	-	-	-
4. Other liabilities and provisions	x	x	-	-	-
5. Hedging derivatives	x	x	-	-	-
6. Financial assets	x	x	x	-	(24)
Total	(587)	-	-	(587)	(172)
of which: interest expense on lease payables	-	x	x	-	-

he increase in the item interest expense and similar charges compared to the previous year was due to the change in the interest rate curve, which mainly generated higher charges on repurchase agreements and guarantee deposits received from counterparties, and higher interest paid to public customers for deposits on postal current accounts

1 5 Differentials related to hedge transactions

		(€m)
Items	FY 2023	FY 2022
A. Positive hedge differentials	330	93
B. Negative hedge differentials	(148)	(151)
C. Balance (A-B)	182	(58)

he increase in this item compared to the year 2022 is mainly due to the effects of the upward shift in the interest rate curve and the forward start of fair value hedges which became operational during the year, partially offset by early settlements described in art B - ection 5 of Assets

SECTION 2 – FEES AND COMMISSIONS – ITEMS 40 AND 50

2 1 Fee and commission income: breakdown

			(€m)
	Type of services/Amounts	FY 2023	FY 2022
	a) Financial instruments	12	6
	1. Securities placement	11	5
	1.1 On a firm and/or irrevocable commitment basis	-	-
	1.2 Without irrevocable commitment	11	5
	2. Reception and transmission of orders and execution of orders on behalf of customers	1	1
	2.1 Receipt or transmission of orders for one or more financial instruments	1	1
	2.2 Execution of orders on behalf of customers	-	-
	3. Other commissions related to financial instrument activities	-	-
	of which: proprietary trading	-	-
	of which: individual portfolio management	-	-
	b) Corporate Finance	-	-
	1. Advice on mergers and acquisitions	-	-
	2. Treasury services	-	-
	3. Other fee and commission income related to corporate finance	-	-
	c) Investment advisory activities	-	-
	d) Clearing and settlement	-	-
	e) Custody and administration	2	2
	1. Depository banking	-	-
	2. Other commissions related to custody and administration activities	2	2
	f) Central administrative services for collective portfolio management	-	-
	g) Trust activity	-	-
	h) Payments services	725	728
	1. Current accounts	290	290
	2. Credit cards	-	-
	3. Other debit cards and payment cards	-	-
	4. Bank transfers and other payment orders	75	63
	5. Other fees related to payment services	360	375
	i) Distribution of third-party services	2,908	2,697
	1. Collective portfolio management	-	-
	2. Insurance products	623	538
	3. Other products	2,285	2,159
	of which: individual portfolio management	2	1
	j) Structured finance	-	-
	k) Securitisation servicing activities	-	-
	l) Commitments to disburse funds	-	-
	m) Financial guarantees given	-	-
	of which: credit derivatives	-	-
	n) Financing transactions of which: factoring services	- -	- -
	o) FX trading	1	1
	p) Commodities	-	-
	q) Other fee and commission income	22	20
	of which: for management of multilateral trading facilities	-	-
	of which: for management of organised trading facilities	-	-
Total		3,670	3,454

Fees for "distribution of third-party services" include, in relation to other products, interest on postal deposits relating for €1,740 million to the provision and redemption of nterest-bearing ostal Certificates and payments into and withdrawals from ostal avings Books, carried out on behalf of Cassa Depositi e restiti under the Agreement renewed on 23 December 2021, for the three-year period 2021-2024, and based on the upplementary and Amending Deed of 30 January 2024, effective retroactively from 1 January 2023 to 31 December 2023

he increase in this item compared to the previous year is mainly due to the increase in commissions on postal savings collection activities and the increase in commissions on the placement of insurance products

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Revenue from contracts with customers

		(€m)
Description	FY 2023	FY 2022
Financial instruments	12	6
Recognised at a point in time	-	-
Recognised over time	12	6
Custody and administration	2	2
Recognised at a point in time	-	-
Recognised over time	2	2
Payments services	725	728
Recognised at a point in time	224	229
Recognised over time	500	499
Distribution of third-party services	2,908	2,697
Recognised at a point in time	-	-
Recognised over time	2,908	2,697
FX trading	1	1
Recognised at a point in time	1	1
Recognised over time	-	-
Other fee and commission income	22	20
Recognised at a point in time	-	-
Recognised over time	22	20
Total	3,670	3,454

Revenue from contracts with customers relate mainly to: (i) revenue from distribution of third-party services: these are recognised over time and measured on the basis of the volumes placed, quantified on the basis of commercial agreements with financial institutions With regard to the remuneration for postal savings deposits, the agreement entered into with Cassa Depositi e restiti provides for the payment of a variable fee when certain levels of funding are reached, the quantification of which is determined annually on the basis of volumes of deposits and early redemptions; certain commercial agreements, entered into with leading financial partners for the placement of loan products, provide for the relegation of placement fees in the event of early redemption or subrogation by customers; (ii) revenue for payment services: recognised at point in time on the basis of the number of transactions accepted at the counter (e g commissions on postal current account slips) and valued on the basis of the contractual terms of sale and recognised over time based on the customer's use of the service, mainly with reference to commissions on delegated services and current account maintenance and management services

2 2 Fee and commission income by product and service distribution channel

			(€m)
	Channels/Amounts	FY 2023	FY 2022
a)	own branches: 1. portfolio management 2. securities placements 3. third-party products and services	2,919 - 11 2,908	2,702 - 5 2,697
b)	door-to-door: 1. portfolio management 2. securities placements 3. third-party products and services	- - - -	- - - -
c)	other distribution channels: 1. portfolio management 2. securities placements 3. third-party products and services	- - - -	- - - -

"Own counters" means oste taliane pA's post office network

2 3 Fee and commission expense: breakdown

		(€m)
Services/Amounts	FY 2023	FY 2022
a) Financial instruments	-	-
of which: financial instrument trading	-	-
of which: financial instrument placement	-	-
of which: individual portfolio management	-	-
- Own	-	-
- For third parties	-	-
b) Clearing and Settlement	-	-
c) Custody and administration	-	-
d) Collection and payment services	198	214
of which: credit cards, debit cards and other payment cards	-	-
e) Securitisation servicing	-	-
f) Commitments to receive funds	-	-
g) Financial guarantees received	-	-
of which: credit derivatives	-	-
h) Door-to-door marketing of financial instruments, products and services	-	-
i) FX trading	-	-
j) Other fee and commission expense	2	2
Total	200	216

Fee and commission expense for collection and payment services mainly relate for €184 million to costs accrued for services under the contract with oste ay

SECTION 3 – DIVIDENDS AND SIMILAR INCOME – ITEM 70

3 1 Dividends and similar income: breakdown

During the year, Banco osta RFC received dividends of €0 2 million on its shares in Visa ncorporated, accounted for in "Financial assets measured at fair value through profit or loss"

SECTION 4 – PROFITS/(LOSSES) ON TRADING – ITEM 80

4 1 rofits/(losses) on trading: breakdown

					(€m)
Transactions/Profit component	Unrealised Gains (A)	Trading profits (B)	Unrealised Losses (C)	Trading losses (D)	Net result [(A+B) - (C+D)]
1. Financial assets held for trading	2	-	-	-	2
1.1 Debt securities	-	-	-	-	-
1.2 Equity instruments	-	-	-	-	-
1.3 UCIs	-	-	-	-	-
1.4 Loans	-	-	-	-	-
1.5 Other	2	-	-	-	2
2. Financial liabilities held for trading	-	-	-	-	-
2.1 Debt securities	-	-	-	-	-
2.2 Payables	-	-	-	-	-
2.3 Other	-	-	-	-	-
3. Financial assets and liabilities: exchange differences	x	x	x	x	1
4. Derivative instruments	-	-	(2)	(3)	(5)
4.1 Financial derivatives:	-	-	(2)	(3)	(5)
- on debt securities and interest rates	-	-	-	-	-
- on equity instruments and share indices	-	-	(2)	(3)	(5)
- on foreign exchange and gold	x	x	x	x	-
- Other	-	-	-	-	-
4.2 Credit derivatives	-	-	-	-	-
of which: natural hedges connected with the fair value option	x	x	x	x	-
Total	2	-	(2)	(3)	(2)

SECTION 5 – PROFITS/(LOSSES) ON HEDGING – ITEM 90

5 1 rofits/(losses) on hedging: breakdown

			(€m)
	Profit components/Amounts	FY 2023	FY 2022
A.	Income on:
A.1	Fair value hedge derivatives	273	11,137
A.2	Hedged financial assets (fair value)	894	1
A.3	Hedged financial liabilities (fair value)	-	141
A.4	Cash flow hedge derivatives	-	1
A.5	Foreign currency assets and liabilities	-	-
Gross hedging income (A)		1,167	11,280
B.	Cost of:
B.1	Fair value hedge derivatives	(894)	(141)
B.2	Hedged financial assets (fair value)	(171)	(11,121)
B.3	Hedged financial liabilities (fair value)	(103)	-
B.4	Cash flow hedge derivatives	-	-
B.5	Foreign currency assets and liabilities	-	-
	Gross hedging cost (B)	(1,168)	(11,262)
C. Profits/(Losses) on hedging (A – B)		(1)	18
	of which: result of hedges of net positions	-	-

SECTION 6 – PROFITS/(LOSSES) ON DISPOSAL OR REPURCHASE – ITEM 100

6 1 rofits/(Losses) on disposal or repurchase: breakdown

						(€m)
		FY 2023		FY 2022
Items/Profit components	Profits	Losses	Net result	Profits	Losses	Net result
A. Financial assets
1. Financial assets measured at amortised cost	48	-	48	130	(53)	77
1.1 Due from banks	-	-	-	-	-	-
1.2 Due from customers	48	-	48	130	(53)	77
2. Financial assets measured at fair value through other comprehensive income	164	(54)	110	262	(4)	258
2.1 Debt securities	164	(54)	110	262	(4)	258
2.2 Loans	-	-	-	-	-	-
Total assets (A)	212	(54)	158	392	(57)	335
B. Financial liabilities measured at amortised cost
1. Due to banks	-	-	-	-	-	-
2. Due to customers	-	-	-	-	-	-
3. Debt securities in issue	-	-	-	-	-	-
Total liabilities (B)	-	-	-	-	-	-

SECTION 7 – PROFITS/(LOSSES) ON OTHER FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS – ITEM 110

7 2 et change in value of other financial assets and liabilities measured at fair value through profit or loss: breakdown of other financial assets mandatorily measured at fair value

					(€m)
Transactions/Profit component	Unrealised Gains (A)	Realised gains (B)	Unrealised Losses (C)	Realised losses (D)	Net result [(A+B)-(C+D)]
1. Financial assets	8	1	-	-	9
1.1 Debt securities	8	1	-	-	9
1.2 Equity instruments	-	-	-	-	-
1.3 UCIs	-	-	-	-	-
1.4 Loans	-	-	-	-	-
2. Financial assets in foreign currencies: exchange differences	x	x	x	x	(1)
Total	8	1	-	-	8

SECTION 8 – NET LOSSES/RECOVERIES DUE TO CREDIT RISK – ITEM 130

8 1 et losses/recoveries due to credit risk related to financial assets measured at amortised cost: breakdown

												(€m)
		Impairment losses (1)							Recoveries (2)
Transactions/Profit component	Stage 1	Stage 2	Stage 3		Acquired or originated impaired financial assets		Stage 1	Stage 2 Stage	3	Acquired or originated impaired financial	FY 2023	FY 2022
			Write-off	Other	Write-off	Other				assets
A. Due from banks	-	-	-	-	-	-	-	-	-	-	-	-
- Loans	-	-	-	-	-		-	-	-	-	-	-
- Debt securities	-	-	-	-	-	-	-	-	-	-	-	-
B. Due from customers	(4)	(12)	-	-	-	-	-	7	-	-	(9)	3
- Loans	-	(12)	-	-	-	-	-	7	-	-	(5)	5
- Debt securities	(4)	-	-	-	-	-	-	-	-	-	(4)	(2)
Total	(4)	(12)	-	-	-	-	-	7	-	-	(9)	3

8 2 et losses/recoveries due to credit risk related to financial assets measured at fair value through other comprehensive income: breakdown

												(€m)
		Impairment losses (1)						Recoveries (2)
Transactions/Profit component	Stage 1	Stage 2	Stage 3		Acquired or originated impaired		Stage 1	Stage 2	Stage 3	Acquired or originated	FY 2023	FY 2022
			Write-off	Other	Write-off	Other				impaired financial
A. Debt securities	(5)	-	-		-	- -	2	-		- -	(3)	(4)
B. Loans	-	-	-		-	- -	-	-		- -	-	-
- to customers	-	-	-		-	- -	-	-		- -	-	-
- to banks	-	-	-		-	- -	-	-		- -	-	-
Total	(5)	-	-		-	- -	2	-		- -	(3)	(4)

otal net value adjustments were negative by €12 million and mainly related to the deterioration of the creditworthiness of debt securities he negative change of €11 million compared to the previous year is mainly due to higher recoveries recognised during the year

SECTION 9 – PROFITS/(LOSSES) FROM CONTRACT AMENDMENTS WITHOUT TERMINATION – ITEM 140

ot applicable

SECTION 10 – ADMINISTRATIVE EXPENSES – ITEM 160

10 1 ersonnel expenses: breakdown

Type of expenses/Amounts	FY 2023	FY 2022
1) Employees	(35)	(32)
a) wages and salaries	(25)	(23)
b) social security	(6)	(5)
c) employee termination benefits	(1)	(1)
d) social security costs	-	-
e) provision for employee termination benefits	-	-
f) provisions for post-employment benefits:	-	-
- defined contribution plans	-	-
- defined benefit plans	-	-
g) payments to external supplementary pension funds:	(1)	(1)
- defined contribution plans	(1)	(1)
- defined benefit plans	-	-
h) cost of share-based payments	(1)	(1)
i) other employee benefits	(1)	(1)
2) Other active personnel	-	-
3) Directors and Statutory Auditors	-	-
4) Retirees	-	-
5) Recovery of employment costs of staff seconded to other companies	-	-
6) Refund of costs of third-party employees seconded to the company	-	-
Total	(35)	(32)

10 2 Average number of employees by category (*)

	FY 2023	FY 2022
Employees	412	397
a) executives	26	28
b) middle managers	313	298
c) other employees	73	71
Other employees	-	-
Total	412	397

(*) Figures expressed in full time equivalent terms

10 4 Other employee benefits

his primarily relates to redundancy payments

10 5 Other administrative expenses: breakdown

		(€m)
Type of expenses/Amounts	FY 2023	FY 2022
1) Cost of services provided by Poste Italiane SpA 2) Advisory and other professional services 3) Taxes, penalties and duties 4) Other expenses	(4,887) (13) (38) -	(4,551) (14) (30) -
Total	(4,938)	(4,595)

he cost of services provided by oste taliane functions outside the ring-fence relates to those services described in art A - Accounting policies, A 1, ection 4 - Other information

SECTION 11 – NET PROVISIONS FOR RISKS AND CHARGES – ITEM 170

11 3 et provisions for other risks and charges: breakdown

				(€m)
Items/Profit components	Provisions	Reversals	Net profit/(loss) for 2023	Net profit/(loss) for 2022
Provisions for litigation Provisions for other risks and charges	(2) (5)	8 7	6 2	10 11
Total	(7)	15	8	21

he main provisions and releases are discussed in art B – ection 10 of Liabilities

he decrease from the previous year of €13 million is due to the higher absorption in the statement of profit or loss recognised in the previous year mainly due to the prescription of certain stocks related to the funds transfer business

SECTION 12 – NET LOSSES/RECOVERIES ON PROPERTY, PLANT AND EQUIPMENT – ITEM 180

othing to report

SECTION 13 – NET LOSSES/RECOVERIES ON INTANGIBLE ASSETS – ITEM 190

othing to report

SECTION 14 – OTHER OPERATING INCOME/(EXPENSE) – ITEM 200

14 1 Other operating expense: breakdown

		(€m)
Profit components/Amounts	FY 2023	FY 2022
1. Burglaries and theft 2. Other expenses	(4) (24)	(2) (25)
Total	(28)	(27)

14 2 Other operating income: breakdown

		(€m)
Profit components/Amounts	FY 2023	FY 2022
1. Other revenue from contracts with customers 2. Other operating income	3 13	5 16
Total	16	21

he sub-item "Other revenue from contracts with customers" includes income recognised at a point in time for copying documents and prescription of certified cheques and income recognised over time for postal cheque protests

SECTION 15 – PROFITS/(LOSSES) ON INVESTMENTS – ITEM 220

othing to report

SECTION 16 – PROFITS/(LOSSES) ON FAIR VALUE MEASUREMENT OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS – ITEM 230

othing to report

SECTION 17 – IMPAIRMENT OF GOODWILL – ITEM 240

othing to report

SECTION 18 – PROFITS/(LOSSES) ON DISPOSAL OF INVESTMENTS – ITEM 250

othing to report

SECTION 19 – INCOME TAX EXPENSE ON CONTINUING OPERATIONS – ITEM 270

19 1 ncome tax expense on continuing operations: breakdown

	Profit components/Amounts	FY 2023	FY 2022
1.	Current taxes (-)	(226)	(219)
2.	Increase/(decrease) in current taxes of prior period taxation (+/-)	-	1
3.	Reduction in current taxes (+)	-	-
	3. bis Reduction in current taxes due to tax credit pursuant to Law 214/2011 (+)	-	-
4.	Increase/(decrease) in deferred tax assets (+/-)	(8)	(13)
5.	Increase/(decrease) in deferred tax liabilities (+/-)	1	-
6.	Tax expense for the year (-) (-1+/-2+3+3 bis+/-4+/-5)	(233)	(231)

19 2 Reconciliation between theoretical tax charge at statutory rate and effective tax charge

				(€m)
Description	FY 2023		FY 2022
	IRES	Tax Rate	IRES	Tax Rate
Profit before tax	834		834
Theoretical tax charge	200	24.0%	200	24.0%
Effect of increases/(decreases) on theoretical tax charge
Net provisions for risks and charges and impairments of receivables Taxation for previous years Other	1 - (5)	0.1% 0.0% -0.6%	(1) (1) (4)	-0.1% -0.1% -0.5%
Effective tax charge	196	23.5%	194	23.3%

(€m)

Description	FY 2023		FY 2022
	IRAP	Tax Rate	IRES	Tax Rate
Profit before tax	834		834
Theoretical tax charge	38	4.5%	37	4.5%
Effect of increases/(decreases) on theoretical tax charge
Provisions for risks and charges	-	0.0%	(1)	-0.1%
Other	(1)	-0.1%	1	0.1%
Effective tax charge	37	4.4%	37	4.5%

SECTION 20 – PROFIT/(LOSS) AFTER TAX FROM DISCONTINUED OPERATIONS – ITEM 290

othing to report

SECTION 21 – OTHER INFORMATION

All information has been presented above

SECTION 22 – EARNINGS PER SHARE

othing to report

PART D – COMPREHENSIVE INCOME

ANALYSIS OF COMPREHENSIVE INCOME

			(€m)
	Items	FY 2023	FY 2022
	10. Profit/(Loss) for the year	600	602
	Other components of comprehensive income not reclassified to profit or loss
	20. Equity instruments measured at fair value through other comprehensive income:	-	-
	a) changes in fair value	- -	- -
	b) transfers to other equity Financial liabilities measured at fair value through profit or loss (changes in own credit
30.	rating):	-	-
	a) changes in fair value b) transfers to other equity	- -	- -
40.	Hedges of equity instruments measured at fair value through other comprehensive income:
	a) changes in fair value (hedged instrument)	- -	- -
	b) changes in fair value (hedging instrument)	-	-
	50. Property, plant and equipment 60. Intangible assets	- -	- -
	70. Defined benefit plans	-	1
	80. Non-current assets and disposal groups held for sale	-	-
	90. Share of valuation reserve attributable to equity-accounted investments	-	-
	100. Tax expense on other comprehensive income not reclassified to profit or loss	-	-
	Other components of comprehensive income reclassified to profit or loss
	110. Hedges of foreign investments:	-	-
	a) changes in fair value b) reclassified to profit or loss	- -	- -
	c) other changes	-	-
	120. Foreign exchange differences:	-	-
	a) changes in value	-	-
	b) reclassified to profit or loss	-	-
	c) other changes 130. Cash flow hedges:	- (232)	- (130)
	a) changes in fair value	80	280
	b) reclassified to profit or loss	(312)	(410)
	c) other changes	-	-
	of which: result of net positions 140. Hedges (elements not designated):	- -	- -
	a) changes in value	-	-
	b) reclassified to profit or loss	-	-
	c) other changes	-	-
150.	Financial assets (other than equity instruments) measured at fair value through other comprehensive income:	2,164	(4,544)
	a) changes in fair value	1,938	(4,527)
	b) reclassified to profit or loss	226	(147)
	- impairment losses due to credit risk	3	4
	- realised gains/(losses)	223	(151)
	c) other changes 160. Non-current assets and disposal groups held for sale:	- -	130 -
	a) changes in fair value	-	-
	b) reclassified to profit or loss	-	-
	c) other changes	-	-
	170. Share of valuation reserves attributable to equity-accounted investments: a) changes in fair value	- -	- -
	b) reclassified to profit or loss	-	-
	- impairment losses	-	-
	- realised gains/(losses)	-	-
	c) other changes	-	-
180.	Tax expense on other comprehensive income reclassified to profit or loss	(549)	1,332
	190. Total other comprehensive income	1,383	(3,341)
	200. Comprehensive income (Items 10+190)	1,983	(2,739)
	PART E – INFORMATION ON RISKS AND RELATED HEDGING POLICIES

Introduction

Banco osta RFC's operations, conducted in accordance with residential Decree 144/2001, consist in the management of liquidity generated by postal current account deposits, carried out in the name of Banco osta but subject to statutory restrictions, and collections and payments on behalf of third parties

he funds deposited by private account holders in postal current accounts are invested in euro zone government securities345F ³⁴⁶, whilst deposits by ublic Administration entities are deposited with the M F

n 2023, Banco osta RFC's operations focused on investment of the significantly increased volume of current account deposits, the reinvestment of funds deriving from maturing government securities and in the active management of financial instruments

he financial year 2023 was characterised by a reduction in yields on talian government bonds (the 10-year B fell from 4 72% to 3 7%), which brought the B -Bund spread to 168 basis points compared to 214 last year hese movements led to an increase in the price of securities

Banco osta's capital structure, which is subject to the prudential provisions introduced with the third update of Bank of taly Circular 285/2013, is particularly solid due to its C 1 ratio, which stood at 18 9% at 31 December 2023, and its otal Capital Ratio, which stood at 22 1% at 31 December 2023 he Leverage Ratio stood at 3 2%346F ³⁴⁷ at the end of 2023, an increase compared to 31 December 2022, also as a result of the contraction in the assets of the tatement of financial position linked, mainly, to the decrease in investments

he investment profile is based on the constant monitoring of habits of current account holders and the use of a statistical/econometric model that forecasts the interest rates and maturities typical of postal current accounts Accordingly, the portfolio composition aims to replicate the financial structure of postal current accounts by private customers Management of the relationship between the structure of deposits and investments is handled through an appropriate Asset & Liability Management system he above-mentioned system is thus the general reference for the investments (the limits of which are determined by specific guidelines approved by the Board of Directors) in order to limit exposure to interest rate and liquidity risks

Financial risk management

Balanced financial management and monitoring of the main risk/return profiles are carried out and ensured by dedicated organisational structures, both within and without the Banco osta ring-fence, that operate separately and independently n addition, specific processes are in place governing the assumption and management of and control over financial risks,

³⁴⁶ The funds raised by private customers on postal current accounts must be used in euro area government securities and, for a portion not exceeding 50% of the funds raised, in other securities backed by the Italian government guarantee (as provided by Law no. 296 of 27 December 2006, and subsequent amendments provided by the 2015 Stability Law, no. 190 of 23 December 2014). With the conversion into Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021, BancoPosta RFC is allowed, as part of the 50% of its funding from private customers that can be invested in securities guaranteed by the Italian State, to use up to 30% of this portion to purchase transferable tax credits pursuant to Law Decree no. 34/2020 (the so-called "Decreto Rilancio") and subsequent amendments and additions, i.e. other transferable tax credits pursuant to current legislation (Law no. 106 of 23 July 2021 of Law Decree no. 73 of 25 May 2021).

³⁴⁷ The CET1 ratio and the Total Capital ratio already take into account the proposed capital strengthening of €60 million by means of a profit provision for the financial year 2023, in application of the provisions of Article 26 of Regulation (EU) no. 575/2013. In addition, the Total Capital ratio was affected by the capital increase of €100 million through Additional Tier 1 on 30 June 2023.

including through the progressive implementation of adequate tools n this regard, on 16 February 2021, the Board of Directors adopted a revised version of the Guidelines for nternal Control and Risk Management ystem ( C GR), which contains integrated guidelines for Banco osta RFC's nternal Control and Risk Management ystem From an organisational viewpoint, the model consists of:

• the Control and Risk Committee, established in 2015 within the Board, has the task of supporting, through an appropriate investigative, proposal-making and advisory activity, the evaluations and decisions of the Board of Directors on the internal control and risk management system and on the approval of the relative periodic financial and non-financial reports;
• the Financial and Insurance Services Committee, established on 19 March 2018 has the objective of overseeing the process of developing the products and services distributed by Banco osta, in order to take a uniform, integrated view of the entire offering and to monitor the performance of the financial investments in which private customer deposits are invested;
• the BancoPosta's Risk Management and Governance Outsourcing function, responsible for measuring and controlling risk and duly observing the independence of control functions from management

he management of investments and risk hedging related to Banco osta RFC have been assigned by means of a specific mandate to the specialist functions of Banco osta Fondi pA GR, a oste taliane Group company

n constructing the Risk Model used by Banco osta RFC, account was also taken of the existing prudential supervisory standards for banks and the specific instructions for Banco osta, published by the Bank of taly on 27 May 2014 with the third revision of Circular 285 of 17 December 2013

he above prudential standards have imposed the same obligations on Banco osta as those applicable to banks in terms of corporate governance, internal controls and risk management, requiring, among other things, achievement of the following objectives:

• definition of a Risk Appetite Framework (RAF);
• oversight of implementation of the Company's strategies and policies;
• the containment of risks within the limits set by the RAF;
• protection of the value of assets and against losses;
• identification of material transactions to be subject to prior examination by the risk control function;
• application of the internal capital adequacy assessment process ( CAA ) and the internal liquidity adequacy assessment process ( LAA )

he RAF consists of a framework that defines, in keeping with the maximum acceptable risk, the business model and strategic plan, the risk appetite, risk tolerance thresholds, risk limits and risk management policies, together with the processes needed to define and implement them

SECTION 1 – CREDIT RISK

Credit risk regards the types of risk described below

Credit risk is defined as the possibility that a change in the creditworthiness of a counterparty, to which the entity is exposed, could result in a matching change in the value of the amount due t thus represents the risk that the debtor is partially or entirely unable to repay the principal and interest due

Counterparty risk is the risk that a counterparty could default on obligations of a financial instrument during its term his risk is inherent in certain types of transaction which, for Banco osta RFC, would be derivatives and repurchase agreements

Concentration risk is related to the overexposure to counterparties, groups of related counterparties and counterparties in the same business segment or that engage in the same business or operate in the same geographic region

Qualitative information

1. Generalities

residential Decree 144/2001 prohibits Banco osta RFC from making loans to members of the public As a result, there are no credit policies

he nature of Banco osta RFC's operations, however, results in a considerable concentration of exposure to Republic of taly risk, as a result of its investments in Government securities and its deposits at the M F Credit risk models, explained below, show, however, that for capital requirements this type of investment does not determine capital absorption

2. Credit risk management policies

2.1 Organisational aspects

he role of Banco osta RFC's Risk Management function is the management and control of credit, counterparty and concentration risks

Monitoring credit risk is particularly focused on the following exposures:

• euro area government securities or other securities backed by the talian tate for the use of liquidity collected through current accounts from private customers;
• deposits at the M F in which ublic Administration and private account deposits are invested;
• any eventual amounts due from the reasury as a result of depositing funds gathered less payables for advances disbursed;
• items in progress: cheque clearing, use of electronic cards, collections;
• temporarily overdrawn postal current accounts caused by debiting fees: limited to those which were not classified as impaired since the accounts were in funds in early 2024;
• cash collateral for outstanding transactions with banks and customers, in accordance with agreements intended to mitigate counterparty risk (C A - Credit upport Annexes and GMRA – Global Master Repurchase Agreements);
• cash collateral provided to the guarantee fund of the Central Counterparty "Cassa di Compensazione e Garanzia" for repurchase agreement transactions;
• cash deposits from collateralisation for centrally margined derivatives transactions through clearing brokers;
• trade receivables payable by partners in relation to financial/insurance product placement

Monitoring counterparty risk particularly regards hedging derivatives and repurchase agreements

Banco osta RFC's concentration risk is monitored to limit the instability that could be caused by the default of one customer or a group of related customers to which Banco osta has a significant credit and counterparty risk exposure

2.2 Management, measurement and control systems

Credit risk is controlled through the following:

• minimum rating requirements for issuers/counterparties, based on the type of instrument;
• concentration limits per issuer/counterparty;
• monitoring of changes in the ratings of counterparties

he limits for Banco osta RFC's financial transactions contain rating limits that only permit dealings with investment grade counterparties he limits referred to above have been established by the "Guidelines on oste taliane pA's financial management" for Banco osta RFC pecifically, as regards rating limits, transactions are allowed solely with investment grade counterparties and euro area government issuers with a rating at least equal to that of the talian Republic

With reference to the monitoring thresholds of concentration risk, the limits set by prudential regulations are applied347F 348

he standardised approach348F ³⁴⁹ as defined by U Regulation 575/2013, is used by Banco osta to measure credit and counterparty risks Application of this method entails the use of tandard & oor's, Moody's, Fitch and DBR for the computation of counterparty credit rating classes

n terms of prudential oversight, the following methods are used to estimate the exposure to counterparty risk inherent in each of the following types of transaction:

• the "standardised" approach349F ³⁵⁰, is used for interest rate swaps and forward purchases of government securities;
• Credit Risk Mitigation (CRM) techniques, the Full Method350F ³⁵¹, are used for repurchase transactions

Concentration risk is measured using the method described in U Regulation 575/2013 with regard to large exposures

2.3 Measurement of expected credit losses

he xpected Credit Loss ( CL) method introduced by FR 9 applies to financial assets measured at amortised cost and to financial assets measured at fair value through other comprehensive income

For financial assets other than trade receivables, Banco osta RFC applies the General deterioration approach, with models to estimate risk parameters depending on the type of counterparty:

• nternal risk parameter estimation models for debt securities and deposits with overeign, Banking and Corporate counterparties;
• risk parameters deriving from agency ratings or average default rates for the sector for ublic Administration and Central Counterparties

xpected credit losses are determined either over a 12-month horizon or a lifetime horizon, depending on the stage of the exposure, on the basis of the following metrics:

• robability of Default ( D);
• Loss Given Default (LGD);
• xposure at Default ( AD);
• ime Factor ( F)

Below, the main assumptions adopted in determining the single factors are illustrated:

³⁴⁸ According to prudential regulations, with reference to the rules on Large Exposures, risk-weighted assets must remain below 25% of own funds. As a rule, exposures are recognised at nominal value, taking into consideration any credit risk mitigation techniques. To take into account the lower risk related to the nature of the borrower, more favourable weighting factors are applied.

³⁴⁹ The standardised approach entails risk weightings in accordance with the nature of the exposure and the identity of the counterparty and the counterparty's external credit rating.

³⁵⁰ According to this methodology, the risk exposure of derivatives is calculated through the sum, increased by 40%, of the following two components: the replacement cost, represented by the fair value of derivatives considering the effect of collateral provided and received, and the add-on, calculated on the basis of the contractual characteristics of the derivatives, including the notional amount, maturity and reference risk driver.

³⁵¹ The full CRM method entails reducing risk exposure by the value of the guarantee. Specific rules are applied to take into account market price volatility of the guaranteed asset as well as the collateral received.

• D: as indicated from the start, a oint in ime ( ) and forward-looking evaluation has been adopted;
• LGD: values have been used consistent with the nternal Ratings-Based ( RB) Base Approach under the Basel guidelines (45% for senior risk assets, 75% for subordinated risk assets);
• AD: exposure calculated prospectively until maturity of the instrument, starting from the development of projected cash flows n the development account was taken of specific indexation assumptions for every asset class (fixed-rate securities, variable-rate securities, inflation-indexed securities, etc );
• F: the effective interest rate of each exposure was used as discount factor

he collective impairment of a homogeneous group of financial assets defines the expected credit loss ( CL) of the instrument, even though it cannot be associated with a specific exposure Grouping takes place in relation to the type of counterparty on the basis of the estimated D

Banco osta RFC elected not to adopt the low risk credit exemption and to proceed instead with the staging of the financial instruments concerned

Based on the impairment models described above, to allocate properly performing exposures in stage 1 or stage 2, the significant increase in exposures other than trade receivables is determined on the basis of the change in notches between the rating at the time of investment and the rating at the reporting date

his change in notches is compared with a threshold that takes into account the following factors:

• the rating of the financial instrument at the time of investment;
• the rating of the financial instrument at the reporting date;
• the seniority of the position within the portfolio (vintage factor);
• an additive factor to mitigate the non-linearity of the D vis-à-vis the rating classes351F ³⁵²;
• a judgemental factor to be used only in the presence of sudden changes in the creditworthiness not yet reflected by the rating352F 353

Based on the above information, Banco osta RFC does not apply the presumption that an exposure past due for over 30 days indicates automatically significant increases in credit risk after initial recognition

Banco osta RFC defines a default on the basis of ad hoc assessments that take into consideration:

• any payment delays;
• market information such as a default rating by the rating agencies;
• internal analyses of specific exposures

With reference to late payments, a default definition based on a payment delay of 90 days is used

n keeping with the accounting standard, in determining CL consideration was given also to forward looking elements based on broad-consensus scenarios

he approach followed involves inclusion of forward-looking information in the estimation of the D n particular, prospective estimates made available by the nternational Monetary Fund, the U and the World Bank are used to calculate the D of sovereign counterparties; with regard to other counterparties, on the other hand, the internal model adopted

³⁵² The additive factor is built in view of the rating level at the reporting date, where the better the rating the higher the threshold for the transition to Stage 2.

³⁵³ The judgemental factor can summarise significant aspects in determining the significant increase of credit risk, considering such elements as:

an actual or expected significant change of the internal/external credit rating of the financial instrument; actual or expected negative changes in economic, financial or business conditions that might cause a significant

change in the borrower's ability to honour its obligations, such as an actual or expected increase in interest rates or an actual or expected significant increase in the unemployment rate.

allows the input dataset needed to calculate D to be completed from scenario values referring to some of the model variables he objective of the approach is to estimate the unknown variables by using the historical correlation of the available information35F 354

Variables reflecting social and governance factors were introduced into the D overeign estimation model using indicators provided by authoritative sources such as the U and the World Bank he nvironmental factor is negligible for these purposes in view of the 1-year time horizon of the D itself his factor is monitored, as part of Banco osta RFC, through scenario analyses and verification of ratings provided by external agencies

As to the estimation techniques used, it is noted that since the approaches to calculate the D for overeign, Banking and Corporate counterparties cannot use default events, as they are not frequent, a shadow rating approach was adopted

his method entails the use of target variables related to the level of external rating produced by the agencies; the target is identified as the default rate linked to the rating level A key rating agency was selected to construct the target, taking into account both the large number of rated counterparties and the availability of historical data over what was deemed to be an adequate period of time

he models have been constructed by extracting and utilising the following types of data for each country in the sample:

• macroeconomic data;
• market data: domestic equity indices, global energy/non-energy indices, urostoxx and & 500;
• financial statement data

For trade receivables Banco osta applies the Simplified Approach, where no significant increase in credit risk is expected However, the loss provisions are calculated for an amount equal to lifetime expected credit loss

uch approach is implemented through the following process:

• based on total revenue or the historical credit exposure, a credit threshold is identified beyond which the single receivables or the single exposure is evaluated he analytical evaluation of the exposures entails an analysis of the borrower's credit quality and solvency, as determined on the basis of internal and external supporting evidence;
• for receivables falling below the threshold set, through the preparation of a matrix with the different impairment percentages estimated on the basis of historical losses, where they exist, or alternatively on the historical pattern of collections n constructing the impairment matrix, receivables are grouped by homogeneous categories, based on their characteristics, to take into account the historical loss experience

2.4 Credit risk mitigation techniques

Banco osta RFC adopts credit and counterparty risk mitigation techniques pecifically:

• Fixed income instruments

Debt instruments secured by guarantees or other credit risk mitigation instruments are securities issued by Cassa Depositi e restiti pA guaranteed by the talian tate and subscribed by Banco osta RFC, amounting to a nominal value of €3,000 million at 31 December 2023 hese are recognised as financial assets measured at amortised cost and, in determining the associated expected credit losses, account was taken of the D of the talian Republic

• Derivative financial instruments and repurchase agreements

n order to limit the counterparty risk exposure, Banco osta RFC has concluded standard DA master agreements (with attached C A) and GMRAs which govern the collateralisation, in cash or government securities, of derivative transactions

³⁵⁴ In particular, the use of such approach is limited to situations where, actually, the final data are deemed to be no longer representative of the counterparty's risk.

and repurchase agreements, respectively As of 2021, certain derivatives entered into by Bancoposta RFC through bilateral contracts will be routed to a Qualified Central Counterparty for centralised clearing through the services provided by a clearing broker With reference to repo transactions, in order to mitigate counterparty risk and gain readier access to the market, from December 2017, Banco osta RFC has begun to enter into repurchase agreements with the Central Counterparty, the "Cassa di Compensazione e Garanzia"

he calculation of positions in derivatives and repurchase agreements and the related risk mitigation instruments are illustrated in art B – Other nformation, tables 5 and 6, to which reference is made

• rade receivables

o mitigate the risks arising from the extension of credit terms to its customers, Banco osta RFC has implemented a policy and suitable guidelines that govern the management of trade receivables, the terms and conditions of payment applicable to customers and defines the corporate process aimed at checking the customer's creditworthiness, as well as the sustainability of the business risk inherent in the contract involving extended payment terms

Depending on the evaluations, the contracts entered into with customers may require a suitable guarantee Guarantees are also requested if they are required by rules and regulations and/or implementing rules of specific services

Banco osta RFC accepts mainly guarantees issued by primary banks or insurance companies Alternatively, upon request of the customer and after a risk analysis, it accepts sureties issued by other institutions, security deposits or the opening of postal escrow account

Considering the limited risk of insolvency of government customers, Banco osta RFC as a rule exempts the ublic Administration from the provision of guarantees to secure trade receivables arising from transactions with it, save for the cases when such guarantees are mandatory by law or due to implementing rules of specific services

Accordingly, the guarantees held are related mainly to private customers

For all the exposures evaluated individually, to calculate the provisions for doubtful debts, guarantees reduce the amount of the exposure at risk

At 31 December 2023, unsecured trade receivables minus the relevant loss provisions amount to €995 million

At 31 December 2023, Banco osta RFC does not hold financial assets secured by guarantees or other credit risk mitigation instruments for which no loss provisions have been made (except for the temporary use of liquidity in reverse repurchase agreements)

3. Credit-impaired financial assets

At 31 December 2023, Banco osta RFC held no impaired financial assets

Quantitative information

A. Credit quality

A.1 Non-performing and performing credit exposures: balance, impairment, trends and business distribution

A 1 1 Distribution of financial assets by portfolio and credit quality (carrying amounts)

						(€m)
Portfolios/quality	Bad loans	Unlikely to pay	Non-performing past-due exposures	Performing past due exposures	Other performing exposures	Total
1. Financial assets measured at amortised cost	-	-	-	13	44,549	44,562
2. Financial assets measured at fair value through other comprehensive income	-	-	-	-	33,069	33,069
3. Financial assets measured at fair value	-	-	-	-	-	-
4. Other financial assets mandatorily measured at fair value	-	-	-	-	-	-
5. Financial assets held for sale	-	-	-	-	-	-
Total at 31.12.2023	-	-	-	13	77,618	77,631
Total at 31.12.2022	-	-	-	25	79,712	79,737

A 1 2 Distribution of financial assets by portfolio and credit quality (gross and net amounts)

								(€m)
			Non-performing
Portfolios/quality	Gross exposure	Total impairment losses	Net exposure	Total partial write offs*	Gross exposure	Total impairment losses	Net exposure	Total (net exposure)
1. Financial assets measured at amortised cost	-	-	-	-	44,643	81	44,562	44,562
2. Financial assets measured at fair value through other comprehensive income	-	-	-	-	33,088	19	33,069	33,069
3. Financial assets measured at fair value	-	-	-	-	X	X	-	-
4. Other financial assets mandatorily measured at fair value	-	-	-	-	X	X	-	-
5. Financial assets held for sale	-	-	-	-	-	-	-	-
Total at 31.12.2023	-	-	-	-	77,731	100	77,631	77,631
Total at 31.12.2022	-	-	-	-	79,828	91	79,737	79,737

(*) amount reported for disclosure purposes

			(€m)
		Assets of evidently low credit quality
Portfolios/quality	Cumulative losses	Net exposure	Net exposure
1. Financial assets held for trading 2. Hedging derivatives	- -	- -	- 4,257
Total at 31.12.2023	-	-	4,257
Total at 31.12.2022	-	-	6,109

A 1 3 Distribution of financial assets by past due categories (carrying amounts)

												(€m)
		Stage 1		Stage 2		Stage 3			Acquired or originated impaired financial assets
Portfolios/stages of risk	Between 1		and 30 days 30 - 90 days Over 90 days Between 1			and 30 days 30 - 90 days Over 90 days Between 1			and 30 days 30 - 90 days Over 90 days Between 1		and 30 days 30 - 90 days Over 90	days
1. Financial assets measured at amortised cost 2. Financial assets measured at fair value through other comprehensive income	- -	- -	- -	6 -	- -	7 -	- -	- -	- -	- -	- -	- -
3. Financial assets held for sale	-	-	-	-	-	-	-	-	-	-	-	-
Total at 31.12.2023 Total at 31.12.2022	- -	- -	- 12	6 5	- 2	7 6	- -	- -	- -	- -	- -	- -

A 1 4 Financial assets, commitments to disburse funds and financial guarantees given: overall impairment losses and overall provisions

													Total impairment losses
	Assets in stage 1					Assets in stage 2				Assets in stage 3				Acquired or originated impaired financial assets					Total provisions for commitments to disburse funds and financial guarantees given
Causes/stages of risk	Due from banks and central banks on demand	Financial assets measured at amortised cost	Financial assets measured at fair value through other comprehensive income	Financial assets held for sale	of which: individual impairment	of which: collective impairment		Due from banks and central banks on demand	Financial assets measured at amortised cost	Financial assets measured at fair value through other comprehensive income	Financial assets held for sale	of which: individual impairment	of which: collective impairment	Due from banks and central banks on demand	Financial assets measured at amortised cost	Financial assets measured at fair value through other comprehensive income	Financial assets held for sale	of which: individual impairment	of which: collective impairment	Financial assets measured at amortised cost	Financial assets measured at fair value through other comprehensive income	Financial assets held for sale	of which: individual impairment		of which: collective impairment			Stage 1 Stage 2 Stage 3		Commitments to disburse funds and financial guarantees issued - impaired acquired or originated	Total
Total opening impairment losses	-	18	16		-	-	34	-	57	-	-	34	23	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	91
Increases in acquired or originated financial assets	-	1	3		-	-	4	-	-	-	-	-	-	-	-	-		-	- -		x	x	x	x	x		-	-	-	-	4
Derecognitions other than write-offs	-	-		(2)	-	-	(2)	-	(3)	-	-	-	(3)	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	(5)
Net impairment losses/reversals of impairment losses due to credit risk (+/-)	-	3	2		-	-	5	-	8	-	-	10	(2)	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	13
Contract amendments without termination	-	-	-		-	-	-	-	-	-	-	-	-	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	-
Changes in estimation method	-	-	-		-	-	-	-	-	-	-	-	-	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	-
Write-offs not recognised directly in profit or loss	-	-	-		-	-	-	-	(3)	-	-		(3) -	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	(3)
Other changes	-	-	-		-	-	-	-	-	-	-	-	-	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	-
Total closing impairment losses	-	22	19		-	-	41	-	59	-	-	41	18	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	100
Recovery of amounts on written-off financial assets	-	-	-		-	-	-	-	-	-	-	-	-	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	-
Write-offs recognised directly in profit or loss	-	-	-		-	-	-	-	-	-	-	-	-	-	-	-		-	- -	-	-		-	-	-		-	-	-	-	-

he increase in the provision to cover expected losses is mainly due to the adjustment of the creditworthiness on the securities portfolio and deposits with the M F he assumptions adopted in the valuations at 31 December 2023, in fact,

led to an increase in the D of taly and other Sovereign counterparties in general compared to what was used in the valuations in the eparate Report at 31 December 2022

A 1 5 Financial assets, commitments to disburse funds and financial guarantees given: transfers between the different credit risk stages (gross and nominal amounts)

						(€m)
	Gross values/nominal value
Portfolios/stages of risk		Transfers between stage 1 and stage 2		Transfers between stage 2 and stage 3	Transfers between stage 1 and stage 3
	from stage 1 to stage 2	from stage 2 to stage 1	from stage 2 to stage 3	from stage 3 to stage 2	from stage 1 to stage 3	from stage 3 to stage 1
1. Financial assets measured at amortised cost	-	-	-	-	-	-
2. Financial assets measured at fair value through other comprehensive income	-	-	-	-	-	-
3. Financial assets held for sale	-	-	-	-	-	-
4. Commitments to disburse funds and financial guarantees given	-	-	-	-	-	-
Total at 31.12.2023	-	-	-	-	-	-
Total at 31.12.2022	-	-	-	-	-	12

A 1 6 On- and off-balance-sheet credit exposures to banks: gross and net amounts

Gross exposure Total impairments and total provisions Total partial write Acquired or Acquired or Types of exposures/Amounts Net exposure offs* originated originated Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 impaired impaired financial assets financial assets A. On-balance sheet credit exposures A.1 Demand a) Non-performing - X - - - - X - - - - - b) Performing 763 763 - X - - - - X - 763 - A.2 Other a) Bad loans - X - - - - X - - - - - - of which: forborne exposures - X - - - - X - - - - - b) Unlikely to pay - X - - - - X - - - - - - of which: forborne exposures - X - - - - X - - - - - c) Non-performing past-due exposures - X - - - - X - - - - - - of which: forborne exposures - X - - - - X - - - - - d) Performing past-due exposures - - - X - - - - X - - - - of which: forborne exposures - - - X - - - - X - - - e) Other performing exposures 976 946 30 X - - - - X - 976 - - of which: forborne exposures - - - X - - - - X - - - TOTAL A 1,739 1,709 30 - - - - - - - 1,739 - B. Off-balance sheet credit exposures a) Non-performing - X - - - - X - - - - - b) Performing 3,362 - - X - - - - X - 3,362 -										(€m)
TOTAL B 3,362 - - - - - - - - - 3,362 -
TOTAL A+B 5,101 1,709 30 - - - - - - - 5,101 -

(*) amount reported for disclosure purposes

"Off-balance sheet exposures, erforming" relates to the counterparty risk associated with derivatives registering fair value gains, gross of any netting agreements354F ³⁵⁵, and Repo financing with ecurities Financing ransactions ( F )35F ³⁵⁶ margins

³⁵⁵ BancoPosta RFC is not a party to enforceable master netting agreements or similar arrangements meeting the requirements of IAS 32, paragraph 42 for offsetting in the financial statements but used standard bilateral netting agreements that allow, in the event of the counterparty's default, the offsetting of debit and credit positions in relation to derivative financial instruments.

³⁵⁶ As defined in the prudential requirements.

A 1 7 On- and off-balance-sheet credit exposures to customers: gross and net amounts

		Gross exposure				Total impairments and total provisions		(€m)
Types of exposures/Amounts		Stage 1	Stage 2	Stage 3	Acquired or originated impaired financial assets		Stage 1	Stage 2	Stage 3	Acquired or originated impaired financial assets	Net exposure	Total partial write offs*
A. On-balance sheet credit exposures
a) Bad loans	-	X	-	-	-	-	X	-	-	-	-	-
- of which: forborne exposures	-	X	-	-	-	-	X	-	-	-	-	-
b) Unlikely to pay	-	X	-	-	-	-	X	-	-	-	-	-
- of which: forborne exposures	-	X	-	-	-	-	X	-	-	-	-	-
c) Non-performing past-due exposures	-	X	-	-	-	-	X	-	-	-	-	-
- of which: forborne exposures	-	X	-	-	-	-	X	-	-	-	-	-
d) Performing past-due exposures	70	-	70		X -	57	-	57	X	-	13	-
- of which: forborne exposures	-	-	-		X -	-	-	-	X	-	-	-
e) Other performing exposures	76,685	75,731	954		X -	43	41	2	X	-	76,642	-
- of which: forborne exposures	-	-	-		X -	-	-	-	X	-	-	-
TOTAL A	76,755	75,731	1,024	-	-	100	41	59	-	-	76,655	-
B. Off-balance sheet credit exposures
a) Non-performing	-	X	-	-	-	-	X	-	-	-	-	-
b) Performing	1,088	-	-		X -	-	-	-	X	-	1,088	-
TOTAL B	1,088	-	-	-	-	-	-	-	-	-	1,088	-
TOTAL A+B	77,843	75,731	1,024	-	-	100	41	59	-	-	77,743	-

(*) amount reported for disclosure purposes

"Off-balance sheet exposures, erforming" relates to the counterparty risk associated with derivatives registering positive fair value gross of any existing netting agreements

A.2 Classification of financial assets, commitments to disburse funds and financial guarantees given based on external and internal ratings

Banco osta RFC has no lending policies as it does not grant loans to the public t also uses internal models only for the measurement of expected losses as required by FR 9, but not for the quantification of capital requirements for credit risk

A 2 1 Distribution of financial assets, commitments to disburse funds and financial guarantees given by external rating classes (gross amounts)

								(€m)
Exposures				Total
	Class 1	Class 2	Class 3	Class 4	Class 5	Class 6	Unrated
A. Financial assets measured at amortised cost	287	602	43,154	56	-	-	544	44,643
- Stage 1	287	592	42,655	56	-	-	-	43,590
- Stage 2	-	10	499	-	-	-	544	1,053
- Stage 3	-	-	-	-	-	-	-	-
- Acquired or originated impaired financial assets	-	-	-	-	-	-	-	-
B. Financial assets measured at fair value through other comprehensive income	-	-	33,088	-	-	-	-	33,088
- Stage 1	-	-	33,088	-	-	-	-	33,088
- Stage 2	-	-	-	-	-	-	-	-
- Stage 3	-	-	-	-	-	-	-	-
- Acquired or originated impaired financial assets	-	-	-	-	-	-	-	-
C. Financial assets held for sale	-	-	-	-	-	-	-	-
- Stage 1	-	-	-	-	-	-	-	-
- Stage 2	-	-	-	-	-	-	-	-
- Stage 3	-	-	-	-	-	-	-	-
- Acquired or originated impaired financial assets	-	-	-	-	-	-	-	-
Total (A + B + C)	287	602	76,242	56	-	-	544	77,731
D. Commitments to disburse funds and financial guarantees given	-	-	-	-	-	-	-	-
- Stage 1	-	-	-	-	-	-	-	-
- Stage 2	-	-	-	-	-	-	-	-
- Stage 3	-	-	-	-	-	-	-	-
- Purchased or originated impaired	-	-	-	-	-	-	-	-
Total (D)	-	-	-	-	-	-	-	-
Total (A + B + C + D)	287	602	76,242	56	-	-	544	77,731

tage 2 reflects mainly financial assets represented by trade receivables for which loss provisions are measured with the simplified approach

he rating agency equivalents of credit rating classes are shown below:

Credit rating class	Fitch	Moody's	S&P	DBRS
1	from AAA to AA-	from Aaa to Aa3	from AAA to AA-	from AAA to AAL
2	from A+ to A-	from A1 to A3	from A+ to A-	from AH to AL
3	from BBB+ to BBB-	from Baa1 to Baa3	from BBB+ to BBB-	from BBBH to BBBL
4	from BB+ to BB-	from Ba1 to Ba3	from BB+ to BB-	from BBH to BBL
5	from B+ to B-	from B1 to B3	from B+ to B-	from BH to BL
6	CCC+ and below	Caa1 and below	CCC+ and below	CCC

he nature of Banco osta's operations exposes it to a substantial degree of concentration in respect of the talian state he concentration can be seen in able A 2 1 under xternal Rating Class 3, which includes the talian state

A.3 Distribution of guaranteed credit exposures by type of guarantee

A 3 1 Guaranteed on- and off-balance-sheet credit exposures to banks

															(€m)
					Collateral (1)							Personal guarantees (2)
									Credit derivatives Unsecured loans
		Gross	Net							Other derivatives							Total
		exposure			exposure	Mortgages	Real estate - leasing finance Securities		Other collateral	CLNs	Central counterparties Banks		Other financial companies	Other entities	Public Administration entities	Banks	Other financial companies	Other entities	(1)+(2)
1.	Guaranteed on-balance sheet credit exposures:
	1.1 guaranteed in full	150	150	-	-	150	-	-	-	-	-	-	-	-	-	-	150
	- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	1.2 partially guaranteed	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
2.	Guaranteed off-balance sheet credit
	exposures:
	2.1 guaranteed in full	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
	2.2 partially guaranteed	2,406	2,406	-	-	15	2,082	-	-	-	-	-	-	-	-	-	2,097
	- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Guaranteed credit exposures to banks at 31 December 2023 relate to reversal repo transactions and derivative transactions with a positive net fair value

A 3 2 Guaranteed on- and off-balance-sheet credit exposures to customers

Collateral (1)													(€m)
					Personal guarantees (2)
		Gross Net							Credit derivatives				Unsecured loans
	exposure			Real estate -		Other collateral			Other derivatives			Public		Other	Other entities	Total (1)+(2)
		exposure	Mortgages	leasing finance	Securities		CLNs	Central counterparties	Banks	Other financial companies	Other entities	Administration entities	Banks	financial companies
Guaranteed on-balance sheet credit 1. exposures:
1.1 guaranteed in full	5,342	5,341	-	-	3,956	-	-	-	-	-	-	1,385	-	-	-	5,341
- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
1.2 partially guaranteed	1,505	1,505	-	-	-	-	-	-	-	-	-	1,500	-	-	-	1,500
- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Guaranteed off-balance sheet credit 2.
exposures:
2.1 guaranteed in full	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
2.2 partially guaranteed	798	798	-	-	-	729	-	-	-	-	-	-	-	-	-	729
- of which non-performing	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Cash credit exposures refer to:

• fixed-rate securities with a nominal amount of €3,000 million issued by Cassa Depositi e restiti and guaranteed by the talian tate;
• reversal repo transactions managed through the Central Counterparty (CC&G) that meet the requirements of A 32 and are therefore offset in the financial statements in the amount of €2,337 million

Off-balance sheet credit exposures refer to derivative transactions with a positive net fair value

At 31 December 2023, reverse repurchase agreements for €361 million were entered into, but still not settled, with Central Counterparty, secured by securities with a nominal amount of €339 million

B. Distribution and concentration of credit exposures

B 1 Distribution of on and off-balance sheet credit exposures to customers by economic sector

										(€m)
Exposures/	Public Administration entities		Financial companies			Financial companies (of which: insurance companies)		Non-financial companies	Households
Counterparties	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses
A. On-balance sheet credit exposures
A.1 Bad loans	-	-	-	-	-	-	-	-	-	-
- of w hich: forborne exposures	-	-	-	-	-	-	-	-	-	-
A.2 Unlikely to pay	-	-	-	-	-	-	-	-	-	-
- of w hich: forborne exposures	-	-	-	-	-	-	-	-	-	-
A.3 Non-performing past-due exposures	-	-	-	-	-	-	-	-	-	-
- of w hich: forborne exposures	-	-	-	-	-	-	-	-	-	-
A.4 Performing exposures	70,647	44	5,618	3	332	-	384	26	6	27
- of w hich: forborne exposures	-	-	-	-	-	-	-	-	-	-
TOTAL A	70,647	44	5,618	3	332	-	384	26	6	27
B. Off-balance sheet credit exposures
B.1 Non-performing exposures	-	-	-	-	-	-	-	-	-	-
B.2 Performing exposures	-	-	1,088	-	-	-	-	-	-	-
TOTAL B	-	-	1,088	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2023	70,647	44	6,706	3	332	-	384	26	6	27
TOTAL (A+B) at 31.12.2022	75,382	37	9,459	2	288	-	372	29	6	23

B 2 Geographical distribution of on- and off-balance sheet credit exposures to customers

		ITALY		OTHER EUROPEAN COUNTRIES		AMERICAS		ASIA	(€m) REST OF THE WORLD
Exposures/ geographic areas	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses
A. On-balance sheet credit exposures
A.1 Bad loans	-	-	-	-	-	-	-	-	-	-
A.2 Unlikely to pay	-	-	-	-	-	-	-	-	-	-
A.3 Non-performing past-due exposures	-	-	-	-	-	-	-	-	-	-
A.4 Performing exposures	76,548	100	107	-	-	-	-	-	-	-
TOTAL A	76,548	100	107	-	-	-	-	-	-	-
B. Off-balance sheet credit exposures B.1 Non-performing exposures	-	-	-	-	-	-	-	-	-	-
B.2 Performing exposures	-	-	1,088	-	-	-	-	-	-	-
TOTAL B	-	-	1,088	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2023	76,548	100	1,195	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2022	82,603	91	2,616	-	-	-	-	-	-	-

B 2 Geographical distribution of on- and off-balance sheet credit exposures to customers

		ITALY, NORTHWEST		ITALY, NORTHEAST		ITALY, CENTRE	(€m) ITALY, SOUTH AND
Exposures/ geographic areas	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	ISLANDS Total impairment losses
A. On-balance sheet credit exposures
A.1 Bad loans	-	-	-	-	-	-	-	-
A.2 Unlikely to pay	-	-	-	-	-	-	-	-
A.3 Non-performing past-due exposures	-	-	-	-	-	-	-	-
A.4 Performing exposures	2	8	1	5	76,540	57	5	30
TOTAL A	2	8	1	5	76,540	57	5	30
B. Off-balance sheet credit exposures
B.1 Non-performing exposures	-	-	-	-	-	-	-	-
B.2 Performing exposures	-	-	-	-	-	-	-	-
TOTAL B	-	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2023	2	8	1	5	76,540	57	5	30
TOTAL (A+B) at 31.12.2022	3	9	13	4	82,582	50	5	28

he concentration in central taly is due to the fact that nearly all exposures consist of talian Government securities and deposits at the M F

B 3 Geographical distribution of on and off-balance sheet credit exposures to banks

										(€m)
		ITALY		OTHER EUROPEAN COUNTRIES		AMERICAS		ASIA	REST OF THE WORLD
Exposures/ geographic areas	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses
A. On-balance sheet credit exposures
A.1 Bad loans	-	-	-	-	-	-	-	-	-	-
A.2 Unlikely to pay	-	-	-	-	-	-	-	-	-	-
A.3 Non-performing past-due exposures	-	-	-	-	-	-	-	-	-	-
A.4 Performing exposures	941	-	798	-	-	-	-	-	-	-
TOTAL A	941	-	798	-	-	-	-	-	-	-
B. Off-balance sheet credit exposures
B.1 Non-performing exposures	-	-	-	-	-	-	-	-	-	-
B.2 Performing exposures	429	-	2,740	-	-	-	-	-	-	-
TOTAL B	429	-	2,740	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2023	1,370	-	3,538	-	-	-	-	-	-	-
TOTAL (A+B) at 31.12.2022	3,132	-	4,854	-	-	-	-	-	-	-

B 3 Geographical distribution of on and off-balance sheet credit exposures to banks

								(€m)
	ITALY, NORTHWEST		ITALY, NORTHEAST		ITALY, CENTRE		ITALY, SOUTH AND ISLANDS
Exposures/ geographic areas	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses	Net exposure	Total impairment losses
A. On-balance sheet credit exposures
A.1 Bad loans	-	-	-	-	-	-	-	-
A.2 Unlikely to pay	-	-	-	-	-	-	-	-
A.3 Non-performing past-due exposures	-	-	-	-	-	-	-	-
A.4 Performing exposures	30	-	-	-	911	-	-	-
TOTAL A	30	-	-	-	911	-	-	-
B. Off-balance sheet credit exposures
B.1 Non-performing exposures	-	-	-	-	-	-	-	-
B.2 Performing exposures	262	-	-	-	167	-	-	-
TOTAL B	262	-	-	-	167	-	-	-
TOTAL (A+B) at 31.12.2023	292	-	-	-	1,078	-	-	-
TOTAL (A+B) at 31.12.2022	738	-	-	-	2,394	-	-	-

B 4 Large exposures

n compliance with the supervisory standards in force, the table for "Large exposures" shows information on exposures to customers or groups of connected customers that exceed 10% of total own funds he exposures are determined with reference to total on-balance sheet risk assets and off-balance sheet transactions, without applying any risk weightings Based on these criteria, the table includes entities that, despite having a risk weighting of 0%, represent an unweighted exposure in excess of 10% of own funds xposures to the talian state shown in the table represent approximately 94% of the total carrying amount he remaining exposures regard primary counterparties represented by uropean banks and other central counterparties in taly However, in view of the fact that it cannot lend to the public, the Bank of taly has exempted Banco osta RFC from application of the requirements regarding limits on large exposures o further exemptions from the remaining obligations have been granted

Poste Italiane Group	oste taliane's Financial tatements at 31 December 2023
----------------------	--------------------------------------------------------	--	--

	Large exposures
a)	Carrying amount (€m)	81,512
b)	Weighted amount (€m)	1,135
c)	Number	5

E. Disposal of assets

A. Financial assets sold but not fully derecognised

Qualitative information

n the case of Banco osta RFC, this category only regards talian government securities provided as collateral for repurchase agreements Banco osta uses these transactions to access the interbank market to raise funds, with the aim of funding the purchase of government securities and the deposits necessary for margin lending

Quantitative information

1 Financial assets sold recognised in full and related financial liabilities: carrying amounts

	(€m)
				Financial assets sold recognised in full	Associated financial liabilities
		Carrying amount	of which: securitised	of which: subject to repurchase agreements	of which non performing		Carrying amount of which: securitised	of which: subject to repurchase agreements
A.	Financial assets held for trading	-	-	-	X	-	-	-
B.	1. Debt securities 2. Equity instruments 3. Loans	- - -	- - -	- - -	X X X	- - -	- - -	- - -
	4. Derivatives Other financial assets mandatorily	- -	- -	- -	X -	- -	- -	- -
	measured at fair value 1. Debt securities 2. Equity instruments 3. Loans	- - -	- - -	- - -	- X -	- - -	- - -	- - -
C.	Financial assets measured at fair value	-	-	-	-	-	-	-
	1. Debt securities 2. Loans	- -	- -	- -	- -	- -	- -	- -
D.	Financial assets measured at fair value through other comprehensive income	4,093	-	4,093	-	3,986	-	3,986
E.	1. Debt securities 2. Equity instruments	4,093 -	- -	4,093 -	- X	3,986 -	- -	3,986 -
	3. Loans Financial assets measured at amortised cost	- 6,822	- -	- 6,822	- -	- 6,567	- -	- 6,567
	1. Debt securities 2. Loans	6,822 -	- -	6,822 -	- -	6,567 -	- -	6,567 -
	TOTAL at 31.12.2023 TOTAL at 31.12.2022	10,915 13,012	- -	10,915 13,012		10,553 13,342	- -	10,553 13,342

SECTION 2 – MARKET RISK

Market risk relates to:

• price risk: the risk that the value of a financial instrument fluctuates as a result of market price movements, deriving from factors specific to the individual instrument or the issuer, and factors that influence all instruments traded on the market;
• foreign exchange risk: the risk that the value of a financial instrument fluctuates as a result of movements in exchange rates for currencies other than the functional currency;
• fair value interest rate risk: the risk that the value of a financial instrument fluctuates as a result of movements in market interest rates;
• spread risk: the risk relates to the potential fall in the value of bonds held, following a deterioration in the creditworthiness of issuers;
• cash flow interest rate risk: the risk that the cash flows will fluctuate because of movements in market interest rates;
• interest rate risk of future cash flows: the risk that the cash flows will fluctuate because of movements in inflation rates in the market

2.1 Interest rate and price risks - supervisory trading book

At 31 December 2023, there were financial liabilities for trading deriving exclusively from the stipulation of a forward contract for the sale of 95 thousand ordinary shares of Visa Incorporated for the purpose of stabilising their yield his transaction does not meet the "trading intent" requirement, as defined by art 104 of Regulation ( U) no 575/2013, for classification in the "Regulatory trading book"; this intent is, however, excluded from the "Guidelines on oste taliane pA's financial management" for Banco osta RFC

nformation on the market risks associated with this transaction is provided in the "Banking Book" section

2.2 Interest rate and price risks - banking book

Qualitative information

A. Generalities, management policies and interest rate and price risk measurement methods

• Interest rate risk

nterest rate risk is inherent in the operations of a financial institution and can affect income (cash flow interest rate risk) and the value of the firm (fair value interest rate risk) Movements in interest rate can affect the cash flows associated with variable rate assets and liabilities and the fair value of fixed rate instruments

Cash flow interest rate risk arises from the mismatch – in terms of interest rate, interest rate resets and maturities – of financial assets and liabilities until their contractual maturity and/or expected maturity (banking book), with effects in terms of interest spreads and an impact on future results his risk is of particular relevance to variable-rate assets and liabilities or assets and liabilities which have been transformed into variable rate by fair value hedges

Fair value interest rate risk primarily refers to the effects of changes in interest rates on the price of fixed rate financial instruments or variable rate financial instruments converted to fixed rate via cash flow hedges and, to a lesser degree, the effects of changes in interest rates on the fixed components of variable-rate financial instruments or fixed rate financial

instruments converted to variable rate via fair value hedges he impact of these effects is directly related to the financial instrument's duration 356F 357

nterest rate risk on the banking book is measured internally using the economic value method his results in a need to develop an amortisation schedule for the sight deposits consistent with its nature and to select a time horizon and confidence levels for the estimates A maximum time horizon (cut-off point) of 24 years is used for retail customer deposits, 6 years for business customer deposits, 10 years for ostepay cards357F ³⁵⁸ and 2 years for ublic Administration deposits, based on a 99% confidence level his approach entails the computation of an ALM rate risk through the determination of asset/liability

he exposure to interest rate risk, as measured internally, is subject to stress tests of the principal risk factors – such as the duration of deposits, the value of assets and liabilities in the statement of financial position – that contribute to determining the measurement of exposure n particular, the stress tests assumed include a reduction in the maximum maturity horizon (cut-off) for on-demand funding and the revaluation of assets and liabilities under adverse market scenarios

nterest rate risk management and mitigation is based on the conclusions of the measurement of risk exposure and compliance - in line with the risk appetite and thresholds and limits established in the RAF - with financial operations guidelines as approved from time to time by the oste taliane pA's Board of Directors

Details on the risk management model are contained in the note on financial risks in art

Banco osta RFC monitors market risk, including fair value interest rate and spread risks, inherent in financial assets measured at fair value through other comprehensive income and derivative financial instruments through the computation of Value at Risk (VaR) over a time horizon of 1 day at a 99% confidence level

• Spread risk

pread risk regards commitments in euro area government securities or guaranteed by the talian government and classified as financial assets measured at fair value through other comprehensive income he year 2023 witnessed an average reduction in the yields on talian government bonds compared with the previous year and, at 31 December 2023, the spread between ten-year talian government bonds and German bunds is approximately 168 bps, down on the figure for the previous year (214 bps at 31 December 2022)

n the reporting period, the above resulted, in the portfolio of financial assets measured at fair value through other comprehensive income (notional of around €35 billion), held by Banco osta RFC, in an overall net increase in fair value of approximately €2 3 billion: this change was partly recognised in the profit and loss for a positive amount of approximately €0 4 billion relating to the change in the fair value of securities hedged against interest rate risk, whilst the positive change in the fair value of unhedged securities and the spread risk component (not hedged) was reflected in equity for approximately €1 9 billion

• Price risk

rice risk relates to financial assets measured at fair value through profit or loss

his sensitivity analysis takes into account the main positions potentially exposed to the greatest risk of price movements Banco osta RFC monitors the price risk to which its shareholdings are exposed by computing Value at Risk (VaR) over a time horizon of 1 day at a 99% confidence level

³⁵⁷ Duration is the indicator used to estimate the percentage change in price in response to a shift in market returns.

³⁵⁸ Since 1 October 2018, prepaid cards are the responsibility of Postepay SpA. The liquidity collected through these cards is transferred to BancoPosta, which invests it in accordance with the investment constraints imposed on other deposits from private customers. As such, for the purposes of specific risk analyses, the rationales related to each model underlying the different types of deposit inflow continue to apply.

Quantitative information

1 Banking Book: ime-to-maturity (repricing date) of financial assets and financial liabilities

Currency: uro

On-balance sheet assets 1. 13,067 8,586 6,597 630 10,213 9,278 32,358 1.1 Debt securities - 4,391 6,597 630 10,213 9,278 32,358 - with prepayment option - - - - - - - - other - 4,391 6,597 630 10,213 9,278 32,358 Due from banks 1.2 1,587 150 - - - - -	- - - - - - - -
1.3 Due from customers 11,480 4,045 - - - - -
- current accounts 6 - - - - - -
- other loans 11,474 4,045 - - - - -
- with prepayment option - - - - - - -	-
- other 11,474 4,045 - - - - -	-
On-balance sheet liabilities 2. 81,349 3,631 251 210 6,472 - -	-
Due to customers 2.1 78,940 2,628 - 10 - - -	-
- current accounts 72,803 1 - 10 - - -	-
- other deposits 6,137 2,627 - - - - -	-
- with prepayment option - - - - - - -	-
- other 6,137 2,627 - - - - -	-
Due to banks 2.2 2,409 1,003 251 200 6,472 - -	-
- current accounts 307 - - - - - -	-
- other deposits 2,102 1,003 251 200 6,472 - -	-
Debt securities 2.3 - - - - - - -	-
- with prepayment option - - - - - - -	-
- other - - - - - - -	-
Other liabilities 2.4 - - - - - - -	-
- with prepayment option - - - - - - -	-
- other - - - - - - -	-
Financial derivatives 3.
3.1 With underlying securities
- Options
+ Long positions - - - - - - -	-
+ Short positions - - - - - - -	-
- Other derivatives
+ Long positions - - - - - - -	-
+ Short positions - - - - - - -	-
3.2 Without underlying securities
- Options
+ Long positions - - - - - - -	-
+ Short positions - - - - - - -	-
- Other derivatives
+ Long positions - 15,697 - 3,000 10,939 2,123 555	-
+ Short positions - 5,346 - 4,332 - 50 22,586 Other off-balance sheet transactions	-
4. + Long positions - - - - - - -	-
+ Short positions - - - - - - -	-

1 Banking Book: ime-to-maturity (repricing date) of financial assets and financial liabilities

Currency: U dollar

Type/Time-to-maturity	Demand	3 months or less		3 - 6 months 6 months - 1 year	1 - 5 years	5 - 10 years	Over 10 years	Unspecified maturity
On-balance sheet assets 1.	1	-	-	-	-	-	-	-
Debt securities 1.1	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Due from banks 1.2	1	-	-	-	-	-	-	-
Due from customers 1.3	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other loans	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
On-balance sheet liabilities 2.	-	-	-	-	-	-	-	-
Due to customers 2.1	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
2.2 Due to banks	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
Debt securities 2.3	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Other liabilities 2.4	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Financial derivatives 3.
3.1 With underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
- Other derivatives
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
3.2 Without underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions - Other derivatives	-	-	-	-	-	-	-	-
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
4. Other off-balance sheet transactions
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-

1 Banking Book: ime-to-maturity (repricing date) of financial assets and financial liabilities

Currency: wiss franc

Type/Time-to-maturity	Demand	3 months or less		3 - 6 months 6 months - 1 year	1 - 5 years	5 - 10 years	Over 10 years	Unspecified maturity
On-balance sheet assets 1.	1	-	-	-	-	-	-	-
1.1 Debt securities	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
1.2 Due from banks	1	-	-	-	-	-	-	-
Due from customers 1.3	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other loans	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
On-balance sheet liabilities 2.	-	-	-	-	-	-	-	-
2.1 Due to customers	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Due to banks 2.2	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
Debt securities 2.3	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Other liabilities 2.4	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Financial derivatives 3.
3.1 With underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
- Other derivatives
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
3.2 Without underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
- Other derivatives
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
Other off-balance sheet transactions 4.
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-

1 Banking Book: ime-to-maturity (repricing date) of financial assets and financial liabilities

Currency: Other currencies

								(€m)
Type/Time-to-maturity	Demand	3 months or less		3 - 6 months 6 months - 1 year	1 - 5 years	5 - 10 years	Over 10 years	Unspecified maturity
1. On-balance sheet assets	1	-	-	-	-	-	-	-
Debt securities 1.1	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Due from banks 1.2	1	-	-	-	-	-	-	-
Due from customers 1.3	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other loans	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
On-balance sheet liabilities 2.	-	-	-	-	-	-	-	-
Due to customers 2.1	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Due to banks 2.2	-	-	-	-	-	-	-	-
- current accounts	-	-	-	-	-	-	-	-
- other deposits	-	-	-	-	-	-	-	-
Debt securities 2.3	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
2.4 Other liabilities	-	-	-	-	-	-	-	-
- with prepayment option	-	-	-	-	-	-	-	-
- other	-	-	-	-	-	-	-	-
Financial derivatives 3.
3.1 With underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
- Other derivatives
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
3.2 Without underlying securities
- Options
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
- Other derivatives
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-
Other off-balance sheet transactions 4.
+ Long positions	-	-	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-	-	-

2 Banking portfolio: internal models and other methods of sensitivity analysis

• Fair value interest rate risk

he sensitivity of exposures to fair value interest rate risk was tested by assuming a parallel shift of the market yield curve of +/- 100 bps he sensitivities data shown by the analysis provide a base scenario that can be used to measure potential changes in fair value, in the presence of changes in interest rates

Banco osta RFC's financial assets measured at fair value through other comprehensive income at 31 December 2023 had a duration of 5 38 for the portfolio of securities and derivatives (31 December 2022: 5 01) he sensitivity analysis is shown in the table

Fair value interest rate risk

Description	Equity reserves before Risk exposure taxation
(€m)	31.12.2023		31.12.2022		31.12.2023
	Notional value*	Fair value	Notional value*	Fair value	+100bps	-100bps
Financial assets measured at fair value through other comprehensive income
Fixed income instruments	34,859	33,069	37,489	33,161	(1,044)	1,067
Assets - Hedging derivatives	-	-	1,806	350	-	-
Liabilities - Hedging derivatives	-	-	2,793	(96)	-	-
Total	34,859	33,069	42,088	33,415	(1,044)	1,067

(*) he settlement price of derivatives involving the exchange of principal (securities or other assets) has been indicated, as required by Bank of taly Circular 262/2005

All of Banco osta RFC's investments are classified as either "Financial assets measured at amortised cost" or "Financial assets measured at fair value through other comprehensive income" he sensitivity analysis shown above is for the last of these categories

n particular, in relation to financial assets measured at fair value through other comprehensive income, the risk in question concerns fixed income government bonds for €33,069 million, consisting of fixed-rate securities for €16,093 million, variable-rate securities for €652 million, variable-rate securities converted into fixed-rate positions through cash flow hedge interest rate swaps for €3,730 million, inflation-linked securities for €1,116 million and fixed- or variable-rate securities converted into variable-rate positions through fair value hedge derivatives for €11,478 million (of which €4,680 million with forward starts)

• Spread risk

pread risk reflects the impact of the difference between yields on sovereign debt and the fair value of euro area government bonds, where such difference, or spread, reflects the perception of markets regarding issuers' creditworthiness

he value of the portfolio of bonds issued or guaranteed by the talian government is much more sensitive to the credit risk associated with the talian Republic than to changes in so-called risk-free interest rates his is due to the fact that changes in credit spreads are not hedged and regard the entire securities portfolio, meaning both the fixed and variable rate components n this latter case, in fact, fair value hedge derivatives, used to convert variable rate instruments, hedge only the risk-free interest rate risk and not credit risk his means that a change in the credit spread has an equal impact on both fixed and variable instruments

he sensitivity to the spread358F ³⁵⁹ has been calculated by applying a shift of +/- 100 bps to the yield curve for talian government bonds

³⁵⁹ For sensitivity purposes, the swap rate curve and the BTP curve were used (10-year swap rate of 249 bps and the spread of the BTP compared to the 10-year swap rate of 121 bps).

he sensitivity analyses are shown below

Fair value spread risk

	Risk exposure Equity reserves before taxation
Description (€m)	31.12.2023		31.12.2022		31.12.2023
	Notional value*	Fair value	Notional value*	Fair value	+100bps	-100bps
Financial assets measured at fair value through other comprehensive income	\
Fixed income instruments	34,859	33,069	37,489	33,161	(2,993)	3,508
Assets - Hedging derivatives Liabilities - Hedging derivatives	- -	- -	1,806 2,793	350 (96)	- -	- -
Total	34,859	33,069	42,088	33,415	(2,993)	3,508

(*) he settlement price of derivatives involving the exchange of principal (securities or other assets) has been indicated, as required by Bank of taly Circular 262/2005

t is worthy of note that any change in the spread would not entail any accounting effect on financial assets measured at amortised cost but would affect solely unrealised gains/losses n other words, fixed income instruments measured at amortised cost, which at 31 December 2023 amounted to €30,398 million (nominal value of €30,877 million) and have a fair value of €28,318 million, would be reduced in fair value by approximately €2 72 billion following an increase in the spread of 100 bps, with the change not reflected in the accounts

Movements in the spread have no impact on Banco osta RFC's ability to meet its capital requirements, as the fair value reserves are not included in the computation of own funds for supervisory purposes

he following is the result of the VaR analysis performed with reference to financial assets measured at fair value through other comprehensive income and the related derivative financial instruments, taking into account the variability of both spread and interest rate risk on fair value:

	(€m)
	2023	2022
Average VaR	(415)	(454)
Minimum VaR	(296)	(285)
Maximum VaR	(565)	(641)

aking into account financial assets measured at fair value through other comprehensive income (including the related hedges outstanding), the combined analysis of spread risk and fair value interest rate risk at 31 December 2023 results in a potential loss of €313 million (VaR at the end of the period) he decrease in VaR at the end of the period, compared with the €513 million at 31 December 2022, reflects the reduction in market volatility during the year and the different portfolio composition

Cash flow interest rate risk

he sensitivity to cash flow interest rate risk at 31 December 2022 and 31 December 2023 is summarised in the table below and was computed assuming a +/- 100 bps parallel shift in the market forward interest rate curve

Cash flow interest rate risk

		Risk exposure	Net interest and other banking income
Description (€m)	31.12.2023	31.12.2022	31.12.2023
	Notional	Notional	+100 bps	-100 bps
Cash
- Deposits with Bank of Italy	756	1,885	8	(8)
- Deposits with banks	7	5	-	-
Financial assets measured at amortised cost
Due from banks
- Collateral guarantees	796	1,468	8	(8)
Due from customers
- Deposits at MEF (PA deposits )	8,936	11,907	89	(89)
- Deposits at MEF (private customer deposits )	873	1,991	9	(9)
- Collateral guarantees	427	989	4	(4)
- Due from Poste Italiane SpA outside the ring-fence	355	349	4	(4)
- Fixed income instruments	6,456	8,115	64	(64)
Financial assets measured at fair value through other comprehensive income
- Fixed income instruments	8,895	10,540	89	(89)
Financial liabilities measured at amortised cost
Due to banks
- Collateral guarantees	(2,102)	(3,636)	(21)	21
- Repurchase agreements	(3,996)	(3,996)	(40)	40
Due to customers
- Collateral guarantees	(729)	(1,188)	(7)	7
Total variability	20,674	28,429	207	(207)

Cash flow interest rate risk at 31 December 2023 was primarily due to:

• the placement of ublic Administration and private deposits with the M F;
• deposits with the Bank of taly of account temporary excess of liquidity deriving from private customer deposits;
• fixed-rate securities issued by the talian tate converted into variable-rate positions through fair value hedge derivatives for a total nominal amount of €14,701 million, including: (i) €1,964 million with hedging effects in the 12 months following the reporting period; (ii) €2,395 million with inflation-linked return;
• variable-rate securities issued by the talian tate with a total nominal value of €650 million;
• receivables for a total amount of €1,223 million for guarantee deposits provided as collateral for derivative liabilities and repurchase agreements;
• payables for a total amount of €2,831 million for guarantee deposits provided as collateral for derivative liabilities and repurchase agreements;
• repos swapped in variable-rate bonds through fair value hedge derivatives for a total nominal amount of €3,996 million

• Cash flow inflation risk

Cash flow inflation rate risk at 31 December 2023 relates to government inflation-indexed bonds which were not hedged through the arrangement of cash flow hedges or fair value hedges entered into by Banco osta RFC, having a nominal value of €1,301 million and a carrying amount of €1,445 million he effects of sensitivity analysis are immaterial

• Price risk

he sensitivity of financial instruments to price risk is analysed using a variability stress calculated with reference to oneyear historical volatility, considered to be representative of potential market movements

rice risk

Description		Risk exposure	Net interest and other banking income
(€m)	31.12.2023 31.12.2022		31.12.2023
			+ Vol	- Vol
Financial assets measured at fair value through profit or loss
Equity instruments	26	40	4	(4)
Financial liabilities held for trading	(3)	(4)	(3)	3
Total	23	36	1	(1)

otes on the related equity instruments (shares) are contained in art B, Assets, able 2 5

he preference Visa ncorporated shares ( eries C Convertible articipating referred tock) held in portfolio were sensitivity tested using similar Class A shares, after adjusting for the volatility of the shares traded on the Y his volatility was mitigated by the partial forward sale of Visa ncorporated eries C ordinary shares in 2021 and 2023 he shares' price risk is also monitored through the computation of VaR

	(€m)
	2023	2022
Closing VaR	(0.2)	(0.2)
Average VaR	(0.2)	(0.2)
Minimum VaR	(0.1)	(0.2)
Maximum VaR	(0.2)	(0.2)

2.3 Foreign exchange risk

Qualitative information

A. Generalities, management policies and foreign exchange risk measurement methods

Foreign exchange risk relates to losses that could be incurred on foreign currency positions, regardless of portfolio, through fluctuations in foreign exchange rates n Banco osta RFC's case, this risk primarily derives from foreign currency bank accounts, foreign currency cash and V A shares359F 360

Foreign exchange risk is controlled by the Risk Management unit using the measurement of exposure to the risk in accordance with financial operations guidelines which restrict currency trading to the foreign exchange service and international bank transfers

Foreign exchange risk is measured using the Bank of taly prudential methodology currently recommended for banks (see U Regulation 575/2013) Furthermore, sensitivity stress tests are regularly conducted for the most important exposures with reference to hypothetical levels of exchange rate volatility for each currency position Movements in exchange rates equal to the historical volatility are assumed to emulate market fluctuations

B. Foreign exchange hedges

Quantitative information

1 Distribution of assets, liabilities and derivatives by currency

				Currency		(€m)
Items	US Dollar	Swiss Franc	GB Sterling	Japanese Yen	Tunisian Dinar	Other currencies
A. Financial assets	27	1	-	-	-	1
A.1 Debt securities	-	-	-	-	-	-
A.2 Equity instruments	26	-	-	-	-	-
A.3 Due from banks	1	1	-	-	-	1
A.4 Due from customers	-	-	-	-	-	-
A.5 Other financial assets	-	-	-	-	-	-
B. Other assets	48	8	3	-	-	-
C. Financial liabilities	-	-	-	-	-	-
C.1 Due to banks	-	-	-	-	-	-
C.2 Due to customers	-	-	-	-	-	-
C.3 Debt securities	-	-	-	-	-	-
C.4 Other financial liabilities	-	-	-	-	-	-
D. Other liabilities	-	-	-	-	-	-
E. Financial derivatives
- Options
+ Long positions	-	-	-	-	-	-
+ Short positions	-	-	-	-	-	-
- Other derivatives
+ Long positions	21	-	-	-	-	-
+ Short positions	23	-	-	-	-	-
Total assets	96	9	3	-	-	1
Total liabilities	23	-	-	-	-	-
Net position (+/-)	73	9	3	-	-	1

"Other assets" relate to foreign currencies held in post offices for the foreign exchange service

³⁶⁰ The exchange rate risk relating to VISA shares was mitigated through forward sale transactions carried out during 2021 and 2023.

2 nternal models and other methods of sensitivity analysis

Application of the foreign exchange rate volatility during the period to the most important equity instruments held by Banco osta are shown in the following table

Foreign exchange risk - U dollar

		Risk exposure	Net interest and other banking income
Description (€m)	31.12.2023		31.12.2022		31.12.2023
	USD	Euro	USD	Euro	- Vol 260 days	- Vol 260 days
Financial assets measured at fair value through profit or loss
Equity instruments	29	26	42	40	2	(2)
Liabilities held for trading	(3)	(3)	(4)	(4)	(2)	2
Total	26	23	38	36	-	-

SECTION 3 – DERIVATIVE INSTRUMENTS AND HEDGING POLICIES

3.1 Trading derivative instruments

A. Financial derivatives

A 1 rading financial derivatives: year-end notional amounts

									(€m)
		Total at 31.12.2023				Total at 31.12.2022
Underlying assets/Types of derivative		Over the counter
		Without central counterparties			Organised		Without central counterparties		Organised
		Central counterparties	With netting agreements	Without netting agreements	markets	Central counterparties	With netting agreements	Without netting agreements	markets
1.	Debt securities and interest rates	-	-	-	-	-	-	-	-
	a) Options	-	-	-	-	-	-	-	-
	b) Swaps	-	-	-	-	-	-	-	-
	c) Forwards	-	-	-	-	-	-	-	-
	d) Futures	-	-	-	-	-	-	-	-
	e) Other	-	-	-	-	-	-	-	-
2.	Equity instruments and equity indexes	-	21	-	-	-	35	-	-
	a) Options	-	-	-	-	-	-	-	-
	b) Swaps	-	-	-	-	-	-	-	-
	c) Forwards	-	21	-	-	-	35	-	-
	d) Futures	-	-	-	-	-	-	-	-
	e) Other	-	-	-	-	-	-	-	-
3.	Currencies and gold	-	-	-	-	-	-	-	-
	a) Options	-	-	-	-	-	-	-	-
	b) Swaps	-	-	-	-	-	-	-	-
	c) Forwards	-	-	-	-	-	-	-	-
	d) Futures	-	-	-	-	-	-	-	-
	e) Other	-	-	-	-	-	-	-	-
4.	Commodities	-	-	-	-	-	-	-	-
5.	Other	-	-	-	-	-	-	-	-
	Total	-	21	-	-	- 35 -			-

A 2 rading financial derivatives: gross positive and negative fair value - breakdown by product

	Total at 31.12.2023 Total at 31.12.2022						(€m)
	Over the counter				Over the counter
Types of derivatives	Without central counterparties		Organised		Without central counterparties		Organised
	Central counterparties	With netting agreements	Without netting agreements	markets	Central counterparties	With netting agreements	Without netting agreements	markets
1. Positive fair value
a) Options	-	-	-	-	-	-	-	-
b) Interest rate swaps	-	-	-	-	-	-	-	-
c) Cross currency swaps	-	-	-	-	-	-	-	-
d) Equity swaps	-	-	-	-	-	-	-	-
e) Forwards	-	-	-	-	-	-	-	-
f) Futures	-	-	-	-	-	-	-	-
g) Other	-	-	-	-	-	-	-	-
Total	-	-	-	-	-	-	-	-
2. Negative fair value
a) Options	-	-	-	-	-	-	-	-
b) Interest rate swaps	-	-	-	-	-	-	-	-
c) Cross currency swaps	-	-	-	-	-	-	-	-
d) Equity swaps	-	-	-	-	-	-	-	-
e) Forwards	-	(3)	-	-	-	(4)	-	-
f) Futures	-	-	-	-	-	-	-	-
g) Other	-	-	-	-	-	-	-	-
Total	-	(3)	-	-	-	(4)	-	-

A 3 O C trading financial derivatives: notional amounts, gross positive and negative fair value by counterparty

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

					(€m)
	Underlying assets	Central counterparties	Banks	Other financial companies	Other entities
	Contracts not falling within the scope of netting agreements
1)	Debt securities and interest rates
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
2)	Equity instruments and equity indexes
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
3)	Currencies and gold
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
4)	Commodities
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
5)	Other
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
	Contracts falling within the scope of netting agreements
1)	Debt securities and interest rates
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
2)	Equity instruments and equity indexes
	- notional amount	-	21	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	(3)	-	-
3)	Currencies and gold
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
4)	Commodities
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
5)	Other
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-

A 4 Residual life of O C trading financial derivatives: notional amounts

				(€m)
Underlyings/Residual life	1 year or less	1 - 5 years	Over 5 years	Total
A.1 Financial derivatives on debt securities and interest rates	-	-	-	-
A.2 Financial derivatives on equity instruments and equity indexes	-	21	-	21
A.3 Financial derivatives on currencies and gold	-	-	-	-
A.4 Financial derivatives on commodities	-	-	-	-
A.5 Other financial derivatives	-	-	-	-
Total at 31.12.2023	-	21	-	21
Total at 31.12.2022	35	-	-	35

3.2 Hedge accounting

Banco osta RFC has fair value and cash flow hedge policies for which it elected, under FR 9, to maintain the accounting treatment provided for by A 39

he reform of key interest rate benchmarks, called the " nterBank Offered Rate ( BOR) Reform", involved regulators in various jurisdictions around the world with the aim of replacing some interbank rates with risk-free alternative rates and preparing guidelines to update contract models

Currently, the main benchmarks for the euro area are:

• the uro hort erm Rate R (administered by the uropean Central Bank and published as of 2 October 2019) which replaced the uro Over ight ndex Average ( O A - no longer listed as of 1 January 2022) redefining it as R plus 8 5 bps;
• the UR BOR (administered by the uropean Money Market nstitute), whose reform process ended in ovember 2019

Banco osta RFC holds financial instruments indexed to the UR BOR, which continues to be quoted daily, and the related cash flows continue to be exchanged with counterparties as usual n relation to this parameter, there is therefore no uncertainty resulting from the BOR reform on 31 December 2023 hese instruments are subject to daily collateralisation remunerated to O A (from 2022 R + 8 5 bps)

n particular, Banco osta RFC holds interest rate swaps designated as fair value hedges that have the " UR BOR-indexed variable "leg" with a notional amount of €29,027 million With particular reference to almost all of these instruments, the cash flows at 31 December 2023 are discounted at the O A rate defined as R plus 8 5 bps and not at the R rate as defined in the contracts in place with the counterparties

Qualitative information

A. Fair value hedges

Banco osta RFC has a government bond portfolio – made up of fixed income B s and inflation-linked B s – subject to movements in fair value due to changes in interest rates and in the inflation rate

o limit the effects of interest rates on fair value, Banco osta RFC enters into nterest Rate waps ( R ) Over the Counter (O C) to hedge the fair value of the bonds held in portfolio he objective of these transactions is to have instruments that can offset changes in fair value of the portfolio due to interest rate fluctuations and the rate of inflation

n addition, Banco osta RFC carries out transactions in repurchase agreements, on euro-government securities or with the guarantee of the talian state for various purposes, including to invest in government bonds, to meet liquidity needs arising from the dynamics of funding on current accounts, and to actively manage the treasury position and guarantee deposits for collateralisation transactions hese transactions are mainly fixed-rate transactions and, therefore, are exposed to changes in fair value due to fluctuations in interest rates

o limit the effects of interest rates on fair value, Banco osta RFC enters into nterest Rate waps ( R ) Over the Counter (O C) to hedge the fair value of the repos held in portfolio

B. Cash flow hedges

Banco osta RFC enters into:

• forward purchases of government bonds, to limit the exposure to interest rate risk deriving from the need to reinvest the cash generated by matured bonds held in portfolio and the 10-year indexed component of the returns on deposits with the M F of funding from the ublic Administration;
• forward sales of government bonds to pursue the stabilisation of returns

hese derivatives qualify as cash flow hedges of forecast transactions

n addition, Banco osta RFC has a portfolio of inflation-linked B s subject to cash flow variability in relation to inflation o limit the effects of interest rates on cash flows, Banco osta RFC enters into O C interest rate swaps to hedge the cash flows of the bonds held in portfolio he objective of these transactions is to stabilise until maturity the return of the instrument, regardless of movements of the variable parameter

C. Hedges of foreign operations

Banco osta RFC does not have a policy for hedges of foreign operations

D. Hedging instruments

Regarding fair value hedge instruments, the main source of ineffectiveness is the use of different spreads/fixed rates360F ³⁶¹ in determining the fair value of the hypothetical derivative and the derivative actually entered into n particular, to evaluate the effectiveness of the hedge relationship, for the hypothetical derivative use is made of the mid-market spread/fixed rate, which makes the present value at the settlement date equal to zero, and for the actual derivative the interest rate agreed upon with the counterparty

As to cash flow hedge instruments, the main source of ineffectiveness is the use of the fixed income component used in determining the fair value of the hypothetical derivative and the actual derivative n particular, to evaluate the effectiveness of the hedge relationship use is made, for the hypothetical derivative, the fixed rate that makes the present value at the settlement date equal to zero while for the actual derivative the calculation is performed with the interest rate agreed upon with the counterparty

With respect to the hedges of forecast transactions, no source of ineffectiveness was identified, as the forward prices of the counterparties were assumed to be perfectly equal to the theoretical forward prices

E. Hedged items

Banco osta RFC designates as hedged items:

• fixed-rate and index-linked bonds and repos at fixed rate, in connection to the fair value hedge policy;

³⁶¹ For Repos, hedging is performed by defining the variable-rate component simply indexed to EURIBOR and the fixed-rate component incorporating market conditions.

• inflation-linked bonds and forecast transactions, in connection with cash flow hedge policies

n particular, in fair value hedges of talian government bonds, the credit risk of the talian Republic is not hedged and is set for the duration of the swap n addition, full hedges and partial hedges are implemented, with the start date equal to the date of purchase of the instrument (swap spot start) and after the purchase of the instrument (swap forward start), respectively

As regards fair value hedges of repos, total hedges are implemented, with an immediate start date

Regarding fair value hedges, Banco osta RFC evaluates the effectiveness of every hedging relationship in offsetting movements in fair value through a retrospective effectiveness test and a prospective effectiveness test361F ³⁶², using the approaches illustrated in the following notes

he retrospective effectiveness test is run by utilising the "dollar offset approach through the hypothetical derivative362F ³⁶³" With this approach, consideration is given to the hedge ratio of the change in fair value of the actual derivative to the change in fair value of the hypothetical derivative occurred between inception and the valuation date he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

he hypothetical derivative and the actual derivative have a settlement date consistent with the hedge inception (spot or forward start - solely for government bonds) and differ solely in their spread/fixed rate which is considered, as already indicated, the main source of ineffectiveness he partial ineffectiveness of the hedge, equal to the difference between the changes in value of the two derivatives (hypothetical and actual) represents the net effect of the hedge recognised separately in profit or loss

For the purposes of the prospective effectiveness test, different approaches have been applied, depending on the characteristics of the hedging swap pecifically:

• the "Critical terms36F ³⁶⁴" approach for swap spot start, for which it has been determined at inception that the characteristics of the fixed leg make it possible to replicate exactly the fixed cash flows generated by the hedged item;

• the "Dollar offset through the hypothetical derivative" approach for forward start swaps and forward hedging swaps, for which the prospective effectiveness test is performed by calculating the hedge ratio between the change in fair

• on a cumulative basis, by observing the performance of the hedge since inception;

• on a periodic basis, by comparing the hedge performance with that of the last test
• he dollar offset approach can be implemented through a hypothetical derivative, that is by constructing a theoretical derivative to compare the relevant theoretical movements in far value or cash flow with those of the hedged instrument (actual derivative)

³⁶² A 39 requires two effectiveness tests:

^• prospective effectiveness test: attests that the hedging relationship is expected to be highly effective in future periods;

^• retrospective effectiveness test: attests that the hedging relationship has been effective from inception to the reporting date For a hedge to be effective, the prospective effectiveness test must show that the hedge is highly effective in offsetting fair value or cash flow movements attributable to the hedged instrument during the designation period, while the result of the retrospective test must show offset ratios ranging from 80% to 125%

A hedge can be ineffective when the hedging instrument and the hedged item: are in different currencies; have different maturities; use different underlying interest rates; are exposed to different counterparty risks; and when the derivative is not equal to zero at inception

³⁶³ he dollar offset approach is a quantitative method that involves a comparison between movements in the fair value or cash flow of the hedging instrument and the movements in the fair value or cash flow of the hedged instrument attributable to the risk hedged Depending on the policy selected, this approach can be used:

³⁶⁴ The critical terms approach involves a comparison between the critical terms of the hedging instrument with those of the hedged item. The hedging relationship is highly effective when all the critical terms of the two instruments match perfectly and there are no features or options that might invalidate the hedge. Critical terms include, for example: notional amount of the derivative and principal of the underlying, credit risk, timing, currency of the cash flows.

value of the hypothetical derivative and the change in fair value of the actual derivative364F ³⁶⁵ he hedge is considered

Regarding cash flow hedges, Banco osta RFC evaluates the effectiveness of the designated derivative in every hedging relationship through a retrospective effectiveness test and a prospective effectiveness test

effective if the hedge ratio falls in the interval between 80% and 125%

With regards to the hedges of forecast transactions, the retrospective effectiveness test involves the calculation of a hedge ratio defined as the ratio of the difference between the fair value of the forward transaction entered into with the counterparty on the test and inception date and the present value of the difference between the theoretical forward price of the B calculated as of the test and inception date Assuming a perfect match between the forward prices of the counterparties and the theoretical forward prices, the hedge ratio is always equal to 100% As such, there are no sources of ineffectiveness

For the purposes of the prospective effectiveness test, the critical terms approach is applied, considering at inception the consistency between the hedging instrument and the hedged item on the basis of the qualitative characteristics of the contracts365F 366

With respect to inflation-linked bonds, the retrospective effectiveness test considers the hedge ratio between the change in fair value of the actual derivative to the change in fair value of the hypothetical derivative occurred between the date of inception and the valuation date he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

he hypothetical derivative and the actual derivative have the settlement date that matches the inception of the hedge and differ in terms of their fixed income component Moreover, for the derivatives used to hedge inflation-linked B , the fair value at the settlement date reflects also the interest accrued of the instrument accrued from the latest interest payment date to the date of settlement of the derivative As such, both are considered the main sources of ineffectiveness

he change in fair value of the actual derivative is recognised through equity, for the effective portion of the hedge, while the change in fair value of the ineffective portion is recognised through profit or loss

For the purposes of the prospective effectiveness test, different approaches have been applied, depending on the characteristics of the hedging swap pecifically:

• the "Critical terms" approach for derivatives for which it has been determined at inception that the characteristics of the indexed leg of the swap make it possible to replicate exactly the variable cash flows generated by the hedged item;
• the "Dollar offset through the hypothetical derivative" approach for derivative contracts with a fixed rate applicable to a nominal amount growing constantly at six-month intervals until the derivative expires For these contracts the prospective effectiveness test is performed by calculating the hedge ratio between the change in fair value of the hypothetical derivative and the change in fair value of the derivative entered into36F ³⁶⁷ he hedge is considered effective if the hedge ratio falls in the interval between 80% and 125%

³⁶⁵ Calculated by assuming a parallel shift of +/- 100 bps of the yield curves.

³⁶⁶ The notional amount of the forward contract must be set, at the settlement date, as equal to the nominal amount of the instrument in case of purchase, and equal or lower than the nominal amount of the instrument in case of sale. The underlying of the forward contract must coincide with the instrument that must be purchased or sold (in this case it must be an instrument in the portfolio) at the settlement date. The settlement date must be the same as the date on which the cash flow to be hedged is expected, in case of forward purchase, or must be related to the year in which the total return must be stabilised, in case of forward sale.

³⁶⁷ Calculated by assuming a parallel shift of +/- 100 bps of the yield curves.

Quantitative information

A. Hedging financial derivatives

A 1 Hedging financial derivatives: year-end notional amounts

								(€m)
		Total at 31.12.2023				Total at 31.12.2022
		Over the counter
Underlying assets/Types of derivative			Without central counterparties	Organised	Central counterparties	Without central counterparties		Organised
	Central counterparties	With netting	Without netting	markets		With netting	Without netting	markets
		agreements		agreements		agreements agreements
1. Debt securities and interest rates	-	32,314	-	-	-	39,478	-	-
a) Options	-	-	-	-	-	-	-	-
b) Swaps	-	32,314	-	-	-	34,879	-	-
c) Forwards	-	-	-	-	-	4,599	-	-
d) Futures	-	-	-	-	-	-	-	-
e) Other	-	-	-	-	-	-	-	-
2. Equity instruments and equity indexes	-	-	-	-	-	-	-	-
a) Options	-	-	-	-	-	-	-	-
b) Swaps	-	-	-	-	-	-	-	-
c) Forwards	-	-	-	-	-	-	-	-
d) Futures	-	-	-	-	-	-	-	-
e) Other	-	-	-	-	-	-	-	-
3. Currencies and gold	-	-	-	-	-	-	-	-
a) Options	-	-	-	-	-	-	-	-
b) Swaps	-	-	-	-	-	-	-	-
c) Forwards	-	-	-	-	-	-	-	-
d) Futures	-	-	-	-	-	-	-	-
e) Other	-	-	-	-	-	-	-	-
4. Commodities	-	-	-	-	-	-	-	-
5. Other	-	-	-	-	-	-	-	-
Total	-	32,314	-	-	-	39,478	-	-

At 31 December 2023, Banco osta RFC had outstanding O C derivatives transactions with Qualified Central Counterparty clearing through clearing brokers for a notional amount of €226 million

A 2 Hedging financial derivatives: gross positive and negative fair value – breakdown by product

										(€m)
Positive and negative fair value						Change in value used to recognise ineffective portion of hedge
Types of derivatives	Total at 31.12.2023				Total at 31.12.2022
	Over the counter			Over the counter				Total at	Total at
	Central		Without central counterparties		Central	Without central counterparties		Organised markets	31.12.2023	31.12.2022
	counterparties	With netting agreements	Without netting agreements	Organised markets	counterparties	With netting agreements	Without netting agreements
1. Positive fair value
a) Options	-	-	-	-	-	-	-	-	-	-
b) Interest rate swaps	-	4,257	-	-	-	5,759	-	-	(348)	9,738
c) Cross currency swaps	-	-	-	-	-	-	-	-	-	-
d) Equity swaps	-	-	-	-	-	-	-	-	-	-
e) Forwards	-	-	-	-	-	350	-	-	-	350
f) Futures	-	-	-	-	-	-	-	-	-	-
g) Other	-	-	-	-	-	-	-	-	-	-
Total	-	4,257	-	-	-	6,109	-	-	(348)	10,088
2. Negative fair value
a) Options	-	-	-	-	-	-	-	-	-	-
b) Interest rate swaps	-	(1,136)	-	-	-	(875)	-	-	(311)	962
c) Cross currency swaps	-	-	-	-	-	-	-	-	-	-
d) Equity swaps	-	-	-	-	-	-	-	-	-	-
e) Forwards	-	-	-	-	-	(96)	-	-	-	(96)
f) Futures	-	-	-	-	-	-	-	-	-	-
g) Other	-	-	-	-	-	-	-	-	-	-
Total	-	(1,136)	-	-	-	(971)	-	-	(311)	866

A 3 O C hedging financial derivatives: notional amounts, gross positive and negative fair value by counterparty

2023 Annual Report

					(€m)
	Underlying assets	Central counterparties	Banks	Other financial companies	Other entities
	Contracts not falling within the scope of netting agreements
1)	Debt securities and interest rates
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
2)	Equity instruments and equity indexes
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
3)	Currencies and gold
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
4)	Commodities
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
5)	Other
	- notional amount	x	-	-	-
	- positive fair value	x	-	-	-
	- negative fair value	x	-	-	-
	Contracts falling within the scope of netting agreements
1)	Debt securities and interest rates
	- notional amount	-	24,252	8,062	-
	- positive fair value	-	3,169	1,088	-
	- negative fair value	-	(786)	(350)	-
2)	Equity instruments and equity indexes
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
3)	Currencies and gold
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
4)	Commodities
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-
5)	Other
	- notional amount	-	-	-	-
	- positive fair value	-	-	-	-
	- negative fair value	-	-	-	-

A 4 Residual life of O C hedging financial derivatives: notional amounts

					(€m)
	Underlying assets/Residual life	1 year or less	1 - 5 years	Over 5 years	Total
A.1	Financial derivatives on debt securities and interest rates	4,021	609	27,684	32,314
A.2	Financial derivatives on equity instruments and equity indexes	-	-	-	-
A.3	Financial derivatives on currencies and gold	-	-	-	-
A.4	Financial derivatives on commodities	-	-	-	-
A.5	Other financial derivatives	-	-	-	-
Total at 31.12.2023		4,021	609	27,684	32,314
	Total at 31.12.2022	4,739	4,096	30,643	39,478

D. Hedged instruments

D 1 Fair value hedges

							(€m)
			Micro-hedges - net		Micro-hedges
		Micro-hedges: carrying amount	positions: balance sheet value of assets or liabilities (before netting)	Cumulative changes in fair value of hedged instrument	Termination of the hedge: residual cumulative changes in fair value	Change in value use to recognise ineffective portion of hedge	Macro-hedges: carrying amount
A.	Assets
1.	Financial assets measured at fair value through other comprehensive income - hedging:
	1.1 Debt securities and interest rates 1.2 Equity instruments and equity indexes 1.3 Currencies and gold 1.4 Receivables 1.5 Other	11,478 - - - -	- - - - -	(1,656) - - - -	(615) - - - -	383 - - - -	X X X X X
2.	Financial assets measured at amortised cost - hedging: 1.1 Debt securities and interest rates 1.2 Equity instruments and equity indexes 1.3 Currencies and gold 1.4 Receivables 1.5 Other	11,073 - - - -	- - - - -	(1,944) - - - -	(419) - - - -	340 - - - -	X X X X X
	Total at 31.12.2023	22,551	-	(3,600)	(1,034)	723	-
B. 1.	Total at 31.12.2022 Liabilities Financial liabilities measured at amortised cost - hedging: 1.1 Debt securities and interest rates 1.2 Currencies and gold 1.3 Other	23,737 (3,966) - -	- - - -	(5,554) 38 - -	(1,308) - - -	(11,119) (103) - -	- X X X
	Total at 31.12.2023 Total at 31.12.2022	(3,966) (3,863)	- -	38 141	- -	(103) 141	- -

D 2 Cash flow hedges and hedges of foreign investments

			(€m)
	Change in value use to recognise ineffective portion of hedge	Hedge reserve	Termination of hedge: residual value of hedge reserve
Cash flow hedges A.
1. Assets 1.1 Debt securities and interest rates 1.2 Equity instruments and equity indexes 1.3 Currencies and gold 1.4 Receivables 1.5 Other	38 - - - -	(413) - - - -	- - - - -
Liabilities 2. 1.1 Debt securities and interest rates 1.2 Currencies and gold 1.3 Other	- - -	- - -	- - -
Total (A) at 31.12.2023 Total (A) at 31.12.2022	38 43	(413) (181)	- -
Hedges of foreign investments B.	X	-	-
Total (A + B) at 31.12.2023	38	(413)	-
Total (A + B) at 31.12.2022	43	(181)	-

E. Effects of hedging transactions through Equity

1 Reconciliation of equity components

										(€m)
			Cash flow hedge reserve			Hedge reserve of foreign investments
	Debt securities and interest rates	Equity instruments and equity indexes	Currencies and gold	Receivables	Other	Debt securities and interest rates	Equity instruments and equity indexes	Currencies and gold	Receivables	Other
Opening balance	(181)	-	-	-	-	-	-	-	-	-
Changes in fair value (effective portion)	80	-	-	-	-	-	-	-	-	-
Reclassifications to profit or loss	(312)	-	-	-	-	-	-	-	-	-
of which: future transactions no longer expected	-	-	-	-	-	X		X X	X	X
Other changes	-	-	-	-	-	-	-	-	-	-
of which: transfers to initial carrying amount of hedged instruments	-	-	-	-	-	X		X X	X	X
Closing balance	(413)	-	-	-	-	-	-	-	-	-

SECTION 4 –LIQUIDITY RISK

Qualitative information

A. Generalities, management policies and liquidity risk measurement methods

Liquidity risk is the risk that an entity may have difficulties in raising sufficient funds, at market conditions, to meet its obligations deriving from financial instruments Liquidity risk may derive from the inability to sell financial assets quickly at an amount close to fair value or the need to raise funds at off-market rates

t is policy to minimise liquidity risk through:

• diversification of the various forms of short-term and long-term loans and counterparties;
• gradual and consistent distribution of the maturities of medium/long-term loans;
• use of dedicated analytical models to monitor the maturities of assets and liabilities;
• the availability of the interbank markets as a source of repurchase agreement finance, with collateral in the form of securities held in portfolio, due to the fact that such assets consist of financial instruments deemed to be highly liquid assets by current standards

n order to mitigate liquidity and market risk in the event of extreme market scenarios, Banco osta RFC can access financing facilities, details of which are provided in art B, Liabilities, ection 1

n terms of Banco osta RFC's operations, liquidity risk regards the deposits in current accounts and prepaid cards367F ³⁶⁸, in relation to investment in euro-government and/or talian government-guaranteed securities or tax credits as well as the margins on derivative transactions he potential risk derives from a mismatch between the maturities of investments in securities and in tax credits and those of liabilities, represented by current accounts where the funds are available on demand, thus compromising the ability to meet its obligations to current account holders his potential mismatch between assets and liabilities is monitored via comparison of loan and deposit maturities, using the statistical model of the performance of current account deposits, in accordance with the various likely maturity schedules and assuming the progressive total withdrawal of deposits over a period of 24 years for retail customers, 6 years for business customers, 10 years for oste ay cards and 6 years for ublic Administration customers Banco osta RFC closely monitors the behaviour of deposits taken in order to assure the model's validity

n addition to postal deposits, Banco osta also funds itself through:

• long-term repos, amounting to an outstanding €7 billion

³⁶⁸ Since 1 October 2018, prepaid cards are the responsibility of Postepay SpA. The liquidity collected through these cards is transferred to BancoPosta, which invests it in accordance with the investment constraints imposed on other deposits from private customers. As such, for the purposes of specific risk analyses, the rationales related to each model underlying the different types of deposit inflow continue to apply.

• short-term deposits created through repurchase agreements as funding for incremental deposits used as collateral for interest rate swaps and Repos (collateral provided, respectively, under C As and GMRAs)

Banco osta RFC's maturity mismatch approach entails an analysis of the mismatch between cash in and outflows for each time band of the maturity ladder

Banco osta RFC's cash is dynamically managed by treasury for the timely and continual monitoring of private customer postal current account cash flows and the efficient management of short-term cash shortfalls and excesses n order to assure flexible investments in securities consistent with the dynamic nature of current accounts, Banco osta RFC can also use the M F buffer account within certain limits and subject to payment of a fee

Details on the risk management model are contained in the note on financial risk at the beginning of this art

he liquidity risk resulting from contract terms requiring the provision of additional collateral in the event of a downgrade of oste taliane pA is negligible uch contracts include those for margin lending of derivatives, which require the threshold amount368F ³⁶⁹ to be reduced to zero in the event that oste taliane pA's rating is downgraded to below "BBB-" he threshold amounts relating to margin lending contracts included in repurchase agreements are equal to zero, meaning that these transactions are not subject to liquidity risk

Banco osta RFC's liquidity is assessed, in the form of stress tests, through risk indicators (the Liquidity Coverage Ratio and et table Funding Ratio) defined by the Basel 3 prudential regulations hese indicators aim to assess whether or not the entity has sufficient high-quality liquid assets to overcome situations of acute stress lasting a month, and to verify that assets and liabilities have sustainable maturity profiles assuming a stress scenario lasting one year aking into account the capital structure of Banco osta RFC characterised by the presence of a high amount of U government securities and deposits mainly made up of retail deposits, these indicators are well above the limits imposed by prudential regulations

Moreover, liquidity risk is monitored through the development of early warning indicators that, in addition to taking into account the level of deposit withdrawals under conditions of stress, aim to monitor funding outflows in line with the estimated performance of deposits at a 99% confidence level

Quantitative information

1 Distribution of contractual time-to-maturity of financial assets and liabilities

he time distribution of assets and liabilities is shown below, as established for banks' financial statements (Bank of taly Circular 262/2005 and subsequent updates), using accounting data reported for the residual contractual term to maturity Management data, such as the modelling of demand deposits and the reporting of cash and cash equivalents taking account of their degree of liquidity, has, consequently, not been used

³⁶⁹ The threshold amount is the amount of collateral that is not required to be provided under the contract; it therefore represents the residual counterparty risk to be borne by a counterparty.

Currency: uro

Items/Time-to-maturity	Demand	1 - 7 days	7 - 15 days	15 days - 1 month	1 - 3 months		3 - 6 months 6 months - 1 year	1 - 5 years	Over 5 years	Unspecified maturity
A. On-balance sheet assets	11,995	4,560	828	250	825	3,835	1,268	16,304	53,763	-
A.1 Government bonds	-	-	58	250	803	2,124	1,236	9,899	50,022	-
A.2 Other debt securities	-	-	-	-	22	10	32	1,500	1,500	-
A.3 UCIs	-	-	-	-	-	-	-	-	-	-
A.4 Due from	11,995	4,560	770	-	-	1,701	-	4,905	2,241	-
- Banks	791	946	-	-	-	-	-	-	-	-
- Customers	11,204	3,614	770	-	-	1,701	-	4,905	2,241	-
B. On-balance sheet liabilities	79,906	4,998	462	150	854	255	210	6,572	-	-
B.1 Deposits and current accounts	73,110	-	-	-	-	-	10	-	-	-
- Banks	307	-	-	-	-	-	-	-	-	-
- Customers	72,803	-	-	-	-	-	10	-	-	-
B.2 Debt securities	-	-	-	-	-	-	-	-	-	-
B.3 Other liabilities	6,796	4,998	462	150	854	255	200	6,572	-	-
C. Off-balance sheet transactions
C.1 Financial derivatives with exchange of principal
- Long positions	-	-	-	-	-	-	-	-	-	-
- Short positions	-	-	-	-	-	-	-	-	-	-
C.2 Financial derivatives without exchange of principal
- Long positions	-	-	-	5	359	80	456	-	-	-
- Short positions	-	-	-	-	267	31	261	-	-	-
C.3 Deposits and loans to be received
- Long positions	-	-	-	-	-	-	-	-	-	-
- Short positions	-	-	-	-	-	-	-	-	-	-
C.4 Irrevocable commitments to disburse funds
- Long positions	-	-	-	-	-	-	-	-	-	-
- Short positions	-	-	-	-	-	-	-	-	-	-
C.5 Financial guarantees given	-	-	-	-	-	-	-	-	-	-
C.6 Financial guarantees received	-	-	-	-	-	-	-	-	-	-
C.7 Credit derivatives with exchange of principal
- Long positions	-	-	-	-	-	-	-	-	-	-
- Short positions	-	-	-	-	-	-	-	-	-	-
C.8 Credit derivatives without exchange of principal
- Long positions	-	-	-	-	-	-	-	-	-	-
- Short positions	-	-	-	-	-	-	-	-	-	-

1 Distribution of contractual time-to-maturity of financial assets and liabilities

Currency: U dollar

15 days - 1 Unspecified Items/Time-to-maturity Demand 1 - 7 days 7 - 15 days 1 - 3 months 3 - 6 months 6 months - 1 year 1 - 5 years Over 5 years month maturity A. On-balance sheet assets 1 - - - - - - - - - A.1 Government bonds - - - - - - - - - - A.2 Other debt securities - - - - - - - - - - A.3 UCIs - - - - - - - - - - A.4 Due from 1 - - - - - - - - - - Banks 1 - - - - - - - - - - Customers - - - - - - - - - - B. On-balance sheet liabilities - - - - - - - - - - - - - - - - - - - - B.1 Deposits and current accounts - Banks - - - - - - - - - - - Customers - - - - - - - - - - B.2 Debt securities - - - - - - - - - - B.3 Other liabilities - - - - - - - - - - C. Off-balance sheet transactions C.1 Financial derivatives with exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.2 Financial derivatives without exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.3 Deposits and loans to be received - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.4 Irrevocable commitments to disburse funds - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.5 Financial guarantees given - - - - - - - - - - C.6 Financial guarantees received - - - - - - - - - - C.7 Credit derivatives with exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.8 Credit derivatives without exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - -						(€m)

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

1 Distribution of contractual time-to-maturity of financial assets and liabilities

Currency: wiss franc

A. On-balance sheet assets 1 - - - - - - - - - A.1 Government bonds - - - - - - - - - - A.2 Other debt securities - - - - - - - - - - A.3 UCIs - - - - - - - - - - A.4 Due from 1 - - - - - - - - - - Banks 1 - - - - - - - - - - Customers - - - - - - - - - - B. On-balance sheet liabilities - - - - - - - - - - B.1 Deposits and current accounts - - - - - - - - - - - Banks - - - - - - - - - - - Customers - - - - - - - - - - B.2 Debt securities - - - - - - - - - - B.3 Other liabilities - - - - - - - - - - C. Off-balance sheet transactions C.1 Financial derivatives with exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.2 Financial derivatives without exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.3 Deposits and loans to be received - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.4 Irrevocable commitments to disburse funds - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.5 Financial guarantees given - - - - - - - - - - C.6 Financial guarantees received - - - - - - - - - - C.7 Credit derivatives with exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - - C.8 Credit derivatives without exchange of principal - Long positions - - - - - - - - - - - Short positions - - - - - - - - - -	Items/Time-to-maturity	Demand	1 - 7 days	7 - 15 days	15 days - 1 month	1 - 3 months	3 - 6 months 6 months - 1 year	1 - 5 years	Over 5 years	Unspecified maturity

1 Distribution of contractual time-to-maturity of financial assets and liabilities

Currency: Other currencies

15 days - 1 Items/Time-to-maturity Demand 1 - 7 days 7 - 15 days 1 - 3 months 3 - 6 months 6 months - 1 year 1 - 5 years month	Unspecified Over 5 years maturity
A. On-balance sheet assets 1 - - - - - - -	- -
A.1 Government bonds - - - - - - - -	- -
A.2 Other debt securities - - - - - - - -	- -
A.3 UCIs - - - - - - - -	- -
A.4 Due from 1 - - - - - - -	- -
- Banks 1 - - - - - - -	- -
- Customers - - - - - - - -	- -
B. On-balance sheet liabilities - - - - - - - -	- -
- - - - - - - - B.1 Deposits and current accounts	- -
- Banks - - - - - - - -	- -
- Customers - - - - - - - -	- -
B.2 Debt securities - - - - - - - -	- -
B.3 Other liabilities - - - - - - - -	- -
C. Off-balance sheet transactions
C.1 Financial derivatives with exchange of principal
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -
C.2 Financial derivatives without exchange of principal
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -
C.3 Deposits and loans to be received
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -
C.4 Irrevocable commitments to disburse funds
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -
C.5 Financial guarantees given - - - - - - - -	- -
C.6 Financial guarantees received - - - - - - - -	- -
C.7 Credit derivatives with exchange of principal
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -
C.8 Credit derivatives without exchange of principal
- Long positions - - - - - - - -	- -
- Short positions - - - - - - - -	- -

SECTION 5 –OPERATIONAL RISKS

Qualitative information

A. Generalities, management policies and operational risk measurement methods

Operational risk refers to the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events his category of risk includes losses resulting from fraud, human error, business disruption, systems failures, breach of contracts and natural disasters Operational risk includes legal risk, but not strategic and reputational risks

o protect against this form of risk, Banco osta RFC has formalised a methodological and organisational framework to identify, measure and manage the operational risk related to its products/processes

he framework, which is based on an integrated (qualitative and quantitative) measurement model, makes it possible to monitor and manage risk on an increasingly informed basis

n 2023, activities continued to refine the operational risk management framework, with the aim of making the process of recording operational losses, monitoring and reporting more efficient and mitigating such risks by cross-functional working groups upport has also been provided to the specialist units and the owner of the process of analysing and assessing risk, in keeping with the approach adopted in 2022, and the monitoring of risk recovery plans was reinforced

he activities carried out in 2023 also included assessments of the risk profile related to the assignment and outsourcing of Banco osta RFC, the fine-tuning of the model for monitoring outsourcing risk, and ex-ante assessments of the risk profile related to the innovation of Banco osta's offering and/or specific project initiatives

Quantitative information

At 31 December 2023, the risk map prepared in accordance with the aforementioned framework shows the type of operational risks Banco osta RFC's products are exposed to n particular:

Operational risk

Event type	Number of types
Internal fraud	28
External fraud	44
Employee practices and workplace safety	8
Customers, products and business practices	37
Damage to material property	4
Business disruption and system failure	8
Execution, delivery and management of the process	107
Total at 31 December 2023	236

For each type of mapped risk, the related sources of risk (internal losses, external losses, scenario analysis and risk indicators) have been recorded and classified in order to construct complete inputs for the integrated measurement model ystematic measurement of the mapped risks has enabled the prioritization of mitigation initiatives and the attribution of responsibilities in order to contain any future impact

PART F – INFORMATION ON EQUITY

SECTION 1 – BANCOPOSTA RFC'S EQUITY

A. Qualitative information

he prudential regulations applicable to banks and investment firms from 1 January 2014 are contained in Bank of taly Circular 285/2013 and subsequent updates, the purpose of which was to implement U Regulation 575/2013 (the socalled Capital Requirements Regulation, or "CRR") and Directive 2013/36/ U (the so-called Capital Requirements Directive, or "CRD V"), containing the reforms required in order to introduce the "Basel 3" regulations n the third revision of the above Circular, the Bank of taly has extended the prudential requirements applicable to banks to Banco osta, taking into account the specific nature of the entity As a result, Banco osta RFC is required to comply with illar 1 capital requirements (credit, counterparty, market and operational risks) and those regarding illar 2 internal capital adequacy ( illar 1 and interest rate risks), for the purposes of the CAA process he relevant definition of capital in both cases is provided by the above supervisory standards369F 370

³⁷⁰ Regulatory capital takes account of the provisions set forth in "Regulation (EU) no. 2020/873 of the European Parliament and of the Council of 24/06/2020 amending Regulations (EU) no. 575/2013 and (EU) no. 2019/876 as regards certain adjustments in response to the COVID-19 pandemic" ("Quick Fix"). BancoPosta RFC made use of the

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023 n view of the extension of prudential standards to Banco osta, Banco osta RFC is now required to establish a system of

internal controls in line with the provisions of Bank of taly Circular 285/2013, which, among other things, requires the definition of a Risk Appetite Framework (RAF) and the containment of risks within the limits set by the RAF370F ³⁷¹ Compliance with the objective, threshold and limit system established by the RAF influences decisions regarding profit distributions as part of capital management

B. Quantitative information

B 1 Company equity: breakdown

		(€m)
Items/Amounts	Amount at 31.12.2023	Amount at 31.12.2022
1. Share capital	-	-
2. Share premium reserve	-	-
3. Reserves	2,570	2,585
- profit	1,358	1,373
a) legal	-	-
b) required by articles of association	-	-
c) treasury shares	-	-
d) other	1,358	1,373
- other	1,212	1,212
4. Equity instruments	450	350
5. (Treasury shares)	-	-
6. Valuation reserves:	(841)	(2,223)
- Equity instruments measured at fair value through other comprehensive income	-	-
- Hedges of equity instruments measured at fair value through other comprehensive income	-	-
- Financial assets (other than equity instruments) measured at fair value through other comprehensive income	(544)	(2,092)
- Property, plant and equipment	-	-
- Intangible assets	-	-
- Hedges of foreign investments	-	-
- Cash flow hedges	(295)	(129)
- Hedges (elements not designated) - Translation differences	- -	- -
- Non-current assets and disposal groups held for sale	-	-
- Financial liabilities designated at fair value through profit or loss (changes in own credit rating)	-	-
- Actuarial gains/(losses) on defined benefit plans	(2)	(2)
- Share of valuation reserves relating to equity accounted investments	-	-
- Special revaluation laws	-	-
7. Profit/(Loss) for the year	600	602
Total	2,779	1,314

"Reserves, other" consists of: i) the specific equity reserve of €1 billion, of which the initial reserve provided to Banco osta RFC on its creation, through the attribution of Banco osta RFC's retained earnings and increased by the €210 million contribution, resolved by the xtraordinary hareholders' Meeting of 29 May 2018, through the allocation of Banco osta RFC's available reserves; ii) profit reserve of €2 million for incentive plans, described in art

he " quity instruments" include the capital contributions completed on 30 June 2021 and 30 June 2023, through the granting of two perpetual subordinated loans, under terms and conditions that allow them to be counted as Additional ier 1 capital ("A 1")371F ³⁷², for amounts of €350 million and €100 million respectively

possibility, recognised by this legislation, to adopt the new percentages for the transitional period from 31 December 2020 to 31 December 2024.

³⁷¹ A definition of the RAF is provided in the "Introduction" to Part E.

³⁷² For more details on the characteristics of the capital instruments issued, please refer to the Public Disclosure ("Pillar 3").

B 2 Valuation reserves for financial assets measured at fair value through other comprehensive income: breakdown

Assets/Amounts		Total at 31.12.2023		Total at 31.12.2022
		Positive reserve	Negative reserve	Positive reserve	Negative reserve
1.	Debt securities	578	(1,122)	236	(2,328)
2. 3.	Equity instruments Loans	- -	- -	- -	- -
	Total	578	(1,122)	236	(2,328)

B 3 Valuations reserves for financial assets measured at fair value through other comprehensive income: annual changes

Total at 31.12.2023			(€m) Total at 31.12.2022
Assets/Amounts	Positive reserve	Negative reserve	Positive reserve Negative reserve
1. Debt securities	578	(1,122)	236	(2,328)
2. Equity instruments 3. Loans	- -	- -	- -	- -
Total	578	(1,122)	236	(2,328)
B 3 Valuations reserves for financial assets measured at fair value through other comprehensive income: annual changes				(€m)
		Debt securities	Equity instruments	Loans
1. Opening balance		(2,092)	-	-
2. Increases 2.1 Increases in fair value		1,576 1,407	- -	- -
2.2 Impairment losses due to credit risk		5	x	-
2.3 Reclassification to profit or loss of negative reserve for realised losses 2.4 Transfers to other equity (equity instruments)		163 -	x -	- -
2.5 Other changes		1	-	-
3. Decreases 3.1 Decreases in fair value		(28) (22)	- -	- -
3.2 Recoveries due to credit risk 3.3 Reclassification to profit or loss of positive reserve for realised gains		(2) (4)	- x	- -
3.4 Transfers to other equity (equity instruments)		-	-	-
3.5 Other changes 4. Closing balance		- (544)	- -	- -
B 4 Valuation reserves for defined benefit plans: annual changes
			Total at	(€m) Total at
			31.12.2023
Opening actuarial gains/(losses)			(2)	(2)
Actuarial gains/(losses) Taxation of actuarial gains/(losses)			- -	31.12.2022 - -
Closing actuarial gains/(losses)			(2)	(2)
		1 and A 1)
quity ier 1 ("C 1") is composed of:
other reserves, being revenue reserves, amounting to €1 billion originating from the creation of the ring-fence, and any further amounts attributed by	oste taliane	pA that meet the requirements for inclusion in own funds372F		373;
SECTION 2 – OWN FUNDS AND CAPITAL RATIOS Banco osta RFC's own funds are all ier 1 capital (C Common • • undistributed earnings, being Banco osta RFC's profits appropriated on approval of statements			oste taliane	pA's financial

B 4 Valuation reserves for defined benefit plans: annual changes

		(€m)
	Total at 31.12.2023	Total at 31.12.2022
Opening actuarial gains/(losses)	(2)	(2)
Actuarial gains/(losses) Taxation of actuarial gains/(losses)	- -	- -
Closing actuarial gains/(losses)	(2)	(2)

SECTION 2 – OWN FUNDS AND CAPITAL RATIOS

• other reserves, being revenue reserves, amounting to €1 billion originating from the creation of the ring-fence, and any further amounts attributed by oste taliane pA that meet the requirements for inclusion in own funds372F ³⁷³;
• undistributed earnings, being Banco osta RFC's profits appropriated on approval of oste taliane pA's financial statements

³⁷³ Contributions from non-controlling shareholders to BancoPosta RFC are excluded, as they are not provided for

Additional ier 1 ("A 1") includes the capital injections of €350 million and €100 million finalised on 30 June 2021 and 30 June 2023

At 31 December 2023, own funds totalled €3,104 million, including €60 million calculated from the profit for 2023 (in compliance with the provisions of art 26 of Regulation ( U) no 575/2013) and €14 million deriving from the application of the transitional arrangements pursuant to Regulation ( U) no 2020/873 (CRR "Quick fix")

Based on prudential standards, Banco osta is required to comply with the following minimum capital ratios:

• Common quity ier 1 ratio (the ratio of C 1 to total risk weighted assets RWAs37F ³⁷⁴): equal to 7 0% (4 5% being the minimum requirement and 2 5% being the capital conservation buffer);
• ier 1 ratio (the ratio of ier 1 to total risk weighted assets RWAs): equal to 8 5% (6 0% being the minimum requirement and 2 5% being the capital conservation buffer);
• otal Capital ratio (the ratio of total own funds to total risk weighted assets RWAs): equal to 10 5% (8% being the minimum requirement and 2 5% being the capital conservation buffer)

Following the upervisory Review and valuation rocess ( R ), on 20 May 2022 the Bank of taly communicated to Banco osta RFC the decision on the amount of capital Banco osta must hold, in addition to the regulatory minimum, to cover its overall risk exposure he new limits (Overall Capital Requirement (OCR) ratios) required by the upervisory Authority are as follows:

• C 1 ratio: 7 80%, comprising a binding measure of 5 30% (of which 4 50% against the minimum regulatory requirements and 0 80% against the additional requirements determined on the basis of the R results) and, for the remainder, the capital conservation buffer component;
• ier 1 ratio: 9 55%, comprising a binding measure of 7 05% (of which 6 00% against the minimum regulatory requirements and 1 05% against the additional requirements determined on the basis of the R results) and, for the remainder, the capital conservation buffer component;
• otal Capital ratio: 11 95%, comprising a binding measure of 9 45% (of which 8% against the minimum regulatory requirements and 1 45% against the additional requirements determined on the basis of the R results) and, for the remainder, the capital conservation buffer component

³⁷⁴ Risk weighted assets, or RWAs, are calculated by applying a risk weighting to the assets exposed to credit, counterparty, market and operational risks.

Moreover, in order to ensure compliance with the binding measures outlined above and to ensure that Banco osta's own funds can absorb any losses arising from stress scenarios, taking into account the results of stress tests performed by Banco osta RFC under CAA , the Bank of taly has identified the following capital levels that Banco osta is required to maintain:

• C 1 ratio: 8 55%, consisting of an OCR C 1 ratio of 7 80% and a arget Component ( illar 2 Guidance, 2G), against a higher risk exposure under stress conditions, of 0 75%;
• ier 1 ratio: 10 30%, consisting of an OCR 1 ratio of 9 55% and a arget Component of 0 75%, against a higher risk exposure under stress conditions;
• otal Capital ratio: 12 70%, consisting of an OCR C ratio of 11 95% and a arget Component of 0 75%, against a higher risk exposure under stress conditions

At 31 December 2023 Banco osta RFC complies with the requirements of the prudential regulations in force, with a ier 1 ratio and a otal Capital ratio of 22 1% and a C 1 ratio of 18 9%374F ³⁷⁵, which are also in line with the additional requirements provided for by the aforementioned procedure

For more details, reference is made, as provided for by Circular no 262 of the Bank of taly, to the information on own funds and capital adequacy contained in the public disclosure (" illar 3")

PART G – BUSINESS COMBINATIONS

o business combinations took place either during or subsequent to the period under review

PART H – RELATED PARTY TRANSACTIONS

1. Payments to key management personnel

Key management personnel consist of Directors and first-line managers of oste taliane pA, whose compensation before social security and welfare charges and contributions are disclosed in section 6 5 - Related parties - of this section - oste taliane pA's financial statements - of the Annual Report and are reflected in Banco osta RFC as part of the expenses for services provided by functions outside the ring-fence (see art C, able 10 5), and defined by the specific operating guidelines ( art A, paragraph A 1, ection 4)

2. Related party transactions

Related party transactions have been carried out on terms equivalent to those prevailing in arm's length transactions between independent parties

³⁷⁵ The ratios take into account the computation of €60 million, as they are the subject of the resolution of Poste Italiane's Board of Directors concerning the proposed allocation of profit for the year 2023 and in compliance with the provisions of Article 26 of Regulation (EU) no. 575/2013..

mpact of related party transactions on the financial position at 31 December 2023

							(€m)
	Total at 31.12.2023
Name		Financial assets Due from banks and customers	Hedging derivative assets and liabilities	Other assets	Financial liabilities	Due to banks and customers	Other liabilities
Poste Italiane SpA	-	370	-	39	-	279	3
Direct subsidiaries
BancoPosta Fondi SpA SGR Consorzio PosteMotori Consorzio Servizi ScpA EGI SpA PatentiViaPoste ScpA Poste Vita SpA Postel SpA PostePay SpA SDA Express Courier SpA Milkman Deliveries SpA Indirect subsidiaries Kipoint SpA LIS Pay S.p.A.	- - - - - - - - - - - -	26 3 - - - 324 - 73 - - - -	- - - - - - - - - - - -	- - - - - - - 190 - - - -	- - - - - - - - - - - -	11 1 - 1 1 695 - 10,152 3 3 - 1	3 - - - - 26 - 107 - - - -
Poste Assicura SpA Poste Insurance Broker	- -	8 -	- -	- -	- -	6 2	- -
Associates
Financit SpA Sennder Italia Srl	- -	3 -	- -	- -	- -	- 36	- -
External related parties
MEF Cassa Depositi e Prestiti Group Monte dei Paschi Group Other related parties external to the Group Provision for doubtful debts due from external related parties	- 2,891 - - (2)	10,060 247 56 - (5)	- - 164 - -	- - - - -	- - - - -	5,371 - 348 - -	- - - 1 -
Total	2,889	11,165	164	229	-	16,910	140

mpact of related party transactions on the financial position at 31 December 2022

							(€m)
	Total at 31.12.2022
Name		Financial assets Due from banks and customers	Hedging derivative assets and liabilities	Other assets	Financial liabilities	Due to banks and customers	Other liabilities
Poste Italiane SpA	-	349	-	44	-	227	36
Direct subsidiaries
BancoPosta Fondi SpA SGR	-	19	-	-	-	7	3
Consorzio PosteMotori	-	3	-	-	-	3	-
Consorzio Servizi Telef. Mobile ScpA	-	-	-	-	-	1	-
EGI SpA	-	-	-	-	-	1	-
PatentiViaPoste ScpA	-	-	-	-	-	3	-
Poste Vita SpA	-	280	-	-	-	179	17
Postel SpA	-	-	-	-	-	-	-
PostePay SpA	-	141	-	83	-	9,404	102
SDA Express Courier SpA	-	-	-	-	-	5	-
Sennder Italia Srl	-	-	-	-	-	20	-
Milkman Deliveries SpA	-	-	-	-	-	7	-
Indirect subsidiaries
Kipoint SpA	-	-	-	-	-	1	-
LIS Pay S.p.A.	-	-	-	-	-	23	-
Poste Assicura SpA	-	7	-	-	-	12	-
Poste Insurance Broker	-	-	-	-	-	3	-
Associates
Financit SpA	-	3	-	-	-	-	-
External related parties
MEF	-	14,158	-	-	-	4,169	-
Cassa Depositi e Prestiti Group	2,865	21	-	-	-	-	-
Monte dei Paschi Group	-	73	203	-	-	396	-
Other related parties external to the Group	-	-	-	-	-	-	1
Provision for doubtful debts due from external related parties	(1)	(5)	-	-	-	-	-
Total	2,864	15,049	203	127	-	14,461	159

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

mpact of related party transactions on profit or loss at 31 December 2023

								(€m)
	FY 2023
Name	Interest and similar income	Interest expense and similar charges	Fee income	Fee expenses	Dividends and similar income	Net impairment (losses)/recoveries on impairment	Administrative expenses	Other operating income/(expense)
Poste Italiane SpA	13	(233)	-	-	-	-	(4,887)	-
Direct subsidiaries
BancoPosta Fondi SpA SGR Consorzio PosteMotori Poste Vita SpA PostePay SpA	- - - -	- - (24) (43)	96 - 600 252	(13) - - (184)	- - - -	- - - -	- - - -	- - - 2
Indirect subsidiaries
Poste Assicura SpA Poste Insurance Broker	- -	- -	56 1	- -	- -	- -	- -	- -
Associates
Financit SpA	-	-	30	-	-	-	-	-
External related parties
MEF	441	-	61	-	-	-	-	-
Cassa Depositi e Prestiti Group	73	-	1,740	-	-	-	-	-
Enel Group	-	-	-	-	-	-	-	-
Eni Group	-	-	-	-	-	-	-	-
Monte dei Paschi Group	3	(7)	-	-	-	-	-	-
Other related parties external to the Group	-	-	-	-	-	-	(3)	-
Total	530	(307)	2,836	(197)	-	-	(4,890)	2

mpact of related party transactions on profit or loss at 31 December 2022

								(€m)
	FY 2022
Name	Interest and similar income	Interest expense and similar charges	Fee income	Fee expenses	Dividends and similar income	Net impairment (losses)/recoveries on impairment	Administrative expenses	Other operating income/(expense)
Poste Italiane SpA	1	(1)	-	-	-	-	(4,551)	-
Direct subsidiaries
BancoPosta Fondi SpA SGR Consorzio PosteMotori Poste Vita SpA PostePay SpA	- - - -	- - (3) (26)	71 4 521 252	(13) - - (200)	- - - -	- - - -	- - - -	- - - 1
Indirect subsidiaries
Poste Assicura SpA Poste Insurance Broker	- -	- -	50 1	- -	- -	- -	- -	- -
Associates
Financit SpA	-	-	40	-	-	-	-	-
External related parties
MEF Cassa Depositi e Prestiti Group Enel Group Eni Group Monte dei Paschi Group Other related parties external to the Group	323 65 - - (1) -	(4) - - - (1) -	61 1,600 1 1 - -	- (1) - - - -	- - - - - -	(1) - - - - -	- - - - - (3)	- - - - - -
Total	388	(35)	2,602	(214)	-	(1)	(4,554)	1

PART I – SHARE-BASED PAYMENT ARRANGEMENTS

A. Qualitative information

1 Description of share-based payment arrangements

LONG-TERM INCENTIVE SCHEME: PERFORMANCE SHARE PLAN

he hareholders' Meeting of oste taliane pA, held on 28 May 2019 approved the information circular for the " quitybased incentive plans – erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the first Cycle 2019-2021 and the second cycle 2020-2022

he hareholders' Meeting of oste taliane pA, held on 28 May 2021 approved the information circular for the " quitybased incentive plans – 2021-2023 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2021-2023

he hareholders' Meeting of oste taliane pA held on 27 May 2022 approved the information circular for the " quitybased incentive plans – 2022-2024 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2022-2024

he hareholders' Meeting of oste taliane pA held on 8 May 2023 approved the information circular for the " quitybased incentive plans – 2023-2025 erformance hare L ", prepared in accordance with art 84-bis of Regulations for ssuers with reference to the performance period 2023-2025

hese incentive systems, constructed in line with market practices, aim to strengthen the link between the variable component of remuneration and the Group's medium to long-term strategy, in line with the budget and the goals in the trategic lan, over a multi-year period

Description of the lans

he " erformance hare L s", as described in the relevant nformation Circulars, provide for the assignment of Rights to the oste taliane's ordinary hares he number of Rights to be granted to Beneficiaries is subject to the achievement of erformance argets over a three-year period, following confirmation of achievement of the Hurdle and Qualifying Conditions lans are developed over a three-year time horizon and shares are awarded if performance targets are achieved or after a retention period he key characteristics of the lans are described below

Beneficiaries

he beneficiaries of the lan are some Banco osta RFC resources

lans' terms and conditions

he erformance argets, common to all Beneficiaries, to which the vesting of the Rights and, therefore, the allocation of the hares is conditioned, for the first award cycle are highlighted below:

• a profitability indicator identified in the Group's three-year cumulative B used to recognise the continuity and sustainability of profitability results over the long term;

• an indicator of shareholder value creation, based on the relative otal hareholder Return, used to measure performance based on the value created for oste taliane's shareholders compared with the F M B index375F 376

For the 2021-2023, 2022-2024 and 2023-2025 erformance hare L s, the following K s are added to the two targets indicated above for the G component:

• 2021-2023 erformance hare L : sustainable finance, target linked to the inclusion of an G component in oste Vita investment products by 2023 n particular, the indicator is calculated by comparing the number of products offered with G components to the total number of products offered;
• 2022-2024 erformance hare L : equal gender representation in succession plans, an objective linked to strengthening the presence of women in managerial succession plans, to help increase the presence of women in positions of greater responsibility in the oste taliane Group pecifically, the indicator is calculated by comparing the number of succession applications occupied by women to the total number of applications;
• 2023-2025 erformance hare L : Green ransition, a target related to the reduction of tCO² emissions; this target is intended to measure the reduction of the Group's total emissions (tCO2e) over the 2023-2025 time horizon Creating value for the country, an objective that takes into account the progress of the construction sites related to the " olis roject" n particular, the indicator is calculated as the ratio of the number of initiatives launched to the total number of physically feasible initiatives

Vesting of the Rights and the therefore the awarding of the hares is subject to achievement of the erformance Hurdle, designed to ensure sustainability of the lan at Group level he erformance Hurdle corresponds with achievement of a certain target for the Group's cumulative B over a three-year period at the end of each erformance eriod n addition, vesting of the phantom stocks is also subject to achievement of Qualifying Conditions, designed to ensure the stability of Banco osta RFC's capital and liquidity position, as follows:

• ndicator of capital adequacy, (C 1) at the end of the period;
• ndicator of short-term liquidity, (LCR) at the end of the period;
• RORAC risk-adjusted earnings at the end of the period

he hares relating to the 2019-2021 and 2020-2022 erformance hare L s will be awarded by the end of the year following the end of the erformance eriod as follows:

• 40% up-front;

• the remaining 60% in two portions, with deferral periods of 2 and 4 years, respectively

For B Beneficiaries (including the General Manager) in relation to the 2021-2023, 2022-2024 and 2023-2025 erformance hare L s, the following disbursement method is envisaged: 40% upfront and 60% in five deferred annual instalments over a five-year period (the first three equal to 10% of the total rights accrued and the next two equal to 15% of the total rights accrued) A further Retention eriod of one year will be applied to both the up-front and deferred portions

he allocation of deferred hares will take place following the verification of the continued existence of Banco osta RFC's levels of capital adequacy, short-term liquidity and risk-adjusted profitability

For more details on the operating mechanisms of the incentive plans, please refer to the nformation Circular and/or the Report on the Remuneration olicy, in force from time to time, approved by the hareholders' Meeting

³⁷⁶ The objective linked to the "relative Total Shareholder Return" (rTSR) includes a "negative threshold" provision: if Poste Italiane's TSR is negative, despite being higher than the TSR registered by the index, the number of vested Rights (linked to rTSR) is reduced to the minimum threshold of 50%.

2023 Annual Report

Poste Italiane Group oste taliane's Financial tatements at 31 December 2023

Determination of fair value and effects on profit or loss

he valuations of these plans were mainly based on the conclusions reached by actuaries outside the Group he unit fair value of each Right at the valuation date is equal to its nominal value at the grant date (determined on the basis of stock market prices), discounted by the expected dividend rate and the risk-free interest rate and updated taking into account the best estimate of service conditions and performance (non-market based performance conditions)

								(€m)
	Number of beneficiaries		Units (No. of Phantom Stocks / Rights to receive shares)	Fair value at grant date	Cost	IFRS 2 Reserve / Liabilities	Payments / Countervalue delivery of treasury shares
Incentive plans		Number of Units	Of which under retention period	BP Beneficiaries
				Grant date	Fair Value
Deliver 3 years	13	8,044	8,044	29/05/2018	€9.19	0.01	0.08	-
19-21 Performance Share LTIP	10	32,866		07/10/2019	€7.01	0.01	0.23	(0.2)
20-22 Performance Share LTIP	10	39,573	13,563	12/11/2020	€ 4.89 - € 5.41	(0.07)	0.20	(0.0)
21-23 Performance Share LTIP	10	73,148	-	28/05/2021	€ 8.27 - € 9.07	0.15	0.58	-
22-24 Performance Share LTIP	12	61,793	-	27/05/2022	€4.65	0.09	0.19	-
23-25 Performance Share LTIP	14	99,899		08/05/2023	€4.47	0.15	0.15	-
Total						0.3	1.3	(0.2)

SHORT-TERM INCENTIVE SCHEMES: MBO

On 27 May 2014, the Bank of taly issued specific upervisory rovisions for Banco osta ( art V, Chapter , "Banco osta" including in Circular 285 of 17 December 2013 " rudential supervisory standards for banks") which, in taking into account Banco osta's specific organisational and operational aspects, has extended application of the prudential standards for banks to include Banco osta his includes the standards relating to remuneration and incentive policies ( art , itle V, Chapter 2 "Remuneration and incentive policies and practices" in the above Circular 285) hese standards provide that a part of the bonuses paid to Banco osta RFC's Risk akers may be awarded in the form of financial instruments over a multi-year timeframe

With regard to the management incentive schemes adopted for Banco osta RFC MBO for 2018, where the incentive is above a certain materiality threshold, the MBO management incentive scheme envisages the award of 50% of the incentive in the form of phantom stocks, representing the value of oste taliane's shares, and application of the following deferral mechanisms:

• 60% of the award to be deferred for a 5-year period on a pro-rata basis, in the case of Material Risk akers who are beneficiaries of both the short-term incentive scheme and long-term incentive scheme, " hantom tock L ";
• 40% of the award to be deferred for a 3-year period on a pro-rata basis for the remaining Material Risk akers

he most recent short-term management incentive schemes (MBO 2019, MBO 2020, MBO 2021, MBO 2022 and MBO 2023), provide, where the incentive exceeds a materiality threshold, for the payment of a portion of the bonus accrued in the form of oste taliane pA's hares and the application of deferral mechanisms:

• 60% of the incentive over 5 years pro-rata for the head of the Banco osta function;
• 40% over 5 years pro-rata for the enior Management Beneficiaries;
• 40% over 3 years pro-rata376F ³⁷⁷ for the Other Beneficiaries

³⁷⁷ For the MBO 2021, MBO 2022 and MBO 2023 only, the pro-rata years are 4, although for the fourth year only a cash payment is provided.

he allocation of hantom tocks (MBO 2017 and 2018) and Rights to receive hares (MBO 2019, MBO 2020, MBO 2021, MBO 2022 and MBO 2023) is subject to the existence of a erformance Hurdle (Group rofitability B ) and Qualifying Conditions as follows:

• Capital adequacy: C 1, risk tolerance level approved in the Risk Appetite Framework (RAF);
• hort-term liquidity: LCR, risk tolerance level approved in the Risk Appetite Framework (RAF);
• Risk-adjusted earnings (RORAC) threshold level approved in the Risk Appetite Framework (RAF) for MBO 2023 only

hares allocated in the form of hantom tock or hares are subject to a Retention eriod for both up-front and deferred shares

ayment of the deferred portion will take place each year, provided that Banco osta RFC's minimum regulatory capital, liquidity and risk-adjusted earnings requirements have been met (solely for MBO 2023) he effects on profit or loss and on equity are recognised in the period in which the instruments vest

Determination of fair value and effects on profit or loss

he valuations of these plans were mainly based on the conclusions reached by actuaries outside the Group

	Number of beneficiaries	Units (Rights to receive shares)			Fair value at grant date	Cost	IFRS 2 Reserve / Liabilities	(€m) Payments / Countervalue delivery of treasury shares
		Number of Units	Of which under retention period	BP Beneficiaries
Incentive plans
				Grant date	Fair Value
MBO 2018	8	8,764	-	19/03/2019	€10.21	0.02	0.09	-
MBO 2019	4	2,848	1,659	05/03/2020	€7.63	-	0.02	(0.04)
MBO 2020	9	3,843	1,895	24/03/2021	€ 8.36 - € 8.83	(0.01)	0.03	(0.02)
MBO 2021	12	20,504	8,117	22/03/2022	€ 8.25 - € 8.77	(0.01)	0.17	(0.20)
MBO 2022	11	56,570	27,842	28/03/2023	€ 7.7 - € 8.31	0.1	0.45	-
MBO 2023(*)	10	58,785	-	19/03/2024	€ 7.79 - € 8.21	0.5	0.47	-
Total						0.6		1.2 (0.3)

(*) MBO 2023 estimated on the basis of the best available information, pending the actual finalisation of the system, in order to identify the cost of the service received

PART L – OPERATING SEGMENTS

he economic flows and performance of the operations are reported internally on a regular basis to executives without identifying segments Banco osta RFC's results are consequently evaluated by senior management as one business division

Furthermore, in accordance with FR 8 4, when separate and consolidated financial statements are combined segment information is only required for the consolidated statements

PART M – INFORMATION ON LEASES

During the reporting period, Banco osta RFC did not carry out any transactions in accordance with FR 16 relating to Leases

Attestation of the Consolidated Financial Statements of the Poste Italiane Group at 31 December 2023 pursuant to art. 154-bis, paragraph 5, of Legislative Decree 58/1998 and art. 81-ter of CONSOB Regulation no. 11971 of 14 May 1999

1. The undersigned Matteo Del Fante, as Chief Executive Officer, and Alessandro Del Gobbo, as Manager Responsible for Financial Reporting of Poste Italiane S.p.A., also taking into account the provisions of art. 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of 24 February 1998, attest to:

2. the adequacy, in relation to the characteristics of the Poste Italiane Group, and

3. the effective application of the administrative and accounting procedures for the formation of the Consolidated Financial Statements of the Poste Italiane Group in the period between 1 January 2023 and 31 December 2023.

4. In this regard, please note that:

5. the adequacy of the administrative and accounting procedures for the formation of the Consolidated Financial Statements of the Poste Italiane Group was verified by evaluating the internal control system on financial reporting. This evaluation was performed by taking as a reference the criteria laid out in the Internal Control – Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO);

6. no significant aspects emerged from the evaluation of the internal control system on financial reporting.

7. It is also attested that:

3.1 The Consolidated Financial Statements of the Poste Italiane Group for the year ended 31 December 2023:

• a) have been prepared in compliance with the International Financial Reporting Standards endorsed by the European Union through EC Regulation 1606/2002, issued by the European Parliament and by the Council on 19 July 2002;
• b) are consistent with the underlying accounting books and records;
• c) give a true and fair view of the financial position and results of operations of the issuer and the companies included in the scope of consolidation.

3.2 The report on operations includes a reliable analysis of the operating and financial performance and the situation of the issuer and the companies included in the scope of consolidation, together with a description of the main risks and uncertainties to which they are exposed.

Rome, 19 March 2024

(original signed) (original signed)

Chief Executive Officer Manager Responsible for Financial Reporting

Matteo Del Fante Alessandro Del Gobbo

( his report has been translated from the original issued in accordance with talian legislation)

Attestation of the Financial Statements at 31 December 2023 pursuant to art. 154-bis, paragraph 5, of Legislative Decree 58/1998 and art. 81-ter of CONSOB Regulation no. 11971 of 14 May 1999

1. The undersigned Matteo Del Fante, as Chief Executive Officer, and Alessandro Del Gobbo, as Manager Responsible for Financial Reporting of Poste Italiane S.p.A., also taking into account the provisions of art. 154-bis, paragraphs 3 and 4, of Legislative Decree no. 58 of 24 February 1998, attest to:

2. the adequacy, in relation to the characteristics of the company, and

3. the effective application of the administrative and accounting procedures for the formation of the Financial Statements in the period between 1 January 2023 and 31 December 2023.

4. In this regard, please note that:

5. the adequacy of the administrative and accounting procedures for the formation of the Financial Statements of Poste Italiane S.p.A. was verified by evaluating the internal control system on financial reporting. This evaluation was performed by taking as a reference the criteria laid out in the Internal Control – Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO);

6. no significant aspects emerged from the evaluation of the internal control system on financial reporting.

7. It is also attested that:

3.1 The Financial Statements for the year ended 31 December 2023:

• d) have been prepared in compliance with the International Financial Reporting Standards endorsed by the European Union through EC Regulation 1606/2002, issued by the European Parliament and by the Council on 19 July 2002;
• e) are consistent with the underlying accounting books and records;
• f) give a true and fair view of the financial position and results of operations of the issuer.

3.2 The report on operations includes a reliable analysis of the operating and financial performance and the situation of the issuer, together with a description of the main risks and uncertainties.

Rome, 19 March 2024

Chief Executive Officer Manager Responsible for Financial Reporting Matteo Del Fante Alessandro Del Gobbo

(original signed) (original signed)

(This report has been translated from the original issued in accordance with Italian legislation)

Poste Italiane Group Reports and attestations

REPORT BY THE BOARD OF STATUTORY AUDITORS OF POSTE ITALIANE S.P.A. TO THE SHAREHOLDERS pursuant to art. 153 of Legislative Decree 58/1998

Dear Shareholders,

During the year ended 31 December 2023, the Board of Statutory Auditors of Poste Italiane S.p.A. ("Company", "Poste" or "Parent Company") fulfilled its statutory duties in accordance with the Italian Civil Code and Legislative Decree 39/2010, Legislative Decree 58/1998 (Testo Unico della Finanza, the "Consolidated Law on Finance"), pursuant to Presidential Decree 144/2001 "Regulations governing the services provided by BancoPosta", and in accordance with the provisions applied to BancoPosta by the relevant authorities. In conducting its duties, the Board of Statutory Auditors also took into account the indications contained in the Corporate Governance Code for listed Companies, which the Company formally adopted with the Board of Directors' ("BoD") resolution of 17 December 2020. The oversight activities required by law were also conducted in accordance with the Code of conduct for Boards of Statutory Auditors of listed Companies, drawn up by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (National Institute of Chartered Accountants and Accounting Experts) in April 2018 ("Code of Conduct"), whose latest version was published on 21 December 2023.

Election and activities of the Board of Statutory Auditors

The undersigned members of the Company's Board of Statutory Auditors, elected by the Annual General Meeting of shareholders held on 27 May 2022, are Mauro Lonardo, Chairman, and Serena Gatteschi and Gianluigi Fiorendi, standing Auditors.

Considering the applicability to the Company of the Regulation on the requirements and criteria of eligibility for the office of corporate officers of banks and financial intermediaries set forth in the Decree of the Ministry of Economy and Finance no. 169 of 23 November 2020, ("Ministerial Decree 169/2020"), following appointment, the Board of Statutory Auditors assessed the suitability of the Standing and Alternate Auditors, in

accordance with the current regulatory provisions and, in particular, the aforementioned decree, ascertaining that they meet the requirements of the current regulations and also providing for corrective measures for Alternate Auditors in the event of their taking over as Standing Auditors and the outcome of the audit - in compliance with the provisions of Ministerial Decree 169/2020 and subsequent Measure of the Bank of Italy of 5 May 2021 - was sent to the Supervisory Authority which had provided a positive response.

During the year, the Board of Statutory Auditors proceeded to verify (i) the existence of compliance with the accumulation of offices, noting that all Statutory Auditors complied with the limit set forth in Article 17 of Italian Ministerial Decree 169/2020 (4 non-executive offices) and (ii) the time commitment - the assessment of which was updated by each Statutory Auditor as their offices changed. As a result of the audit, it was ascertained that each Auditor devoted adequate time to the performance of the task, in accordance with Article 16 of Ministerial Decree No. 169/2020.

The Board of Statutory Auditors ("Board") obtained the information needed in order to carry out its assigned duties by attending all the Board of Directors' and Board Committee meetings, by taking part in the induction sessions organised by the Company, by holding focus meetings with the Company's principal functions, in particular with the control functions, with the BancoPosta function, the Supervisory Board and with the Company's management, as well as through ongoing contact with the Manager responsible for financial reporting and with the Statutory external auditors Deloitte & Touche S.p.A. ("Deloitte" or the "Independent Auditor") appointed to audit the annual and consolidated financial statements for the nine-year period 2020-2028.

During the course of 2023, the meetings of the internal board Committees and of the Board of Statutory Auditors, given the large number of meetings, the need to ensure attendance in the event of consecutive meetings and the complexity of bringing together participating members and corporate functions located in different areas of the country, for reasons of efficiency and effectiveness of the proceedings, were held with all participants connected by audio/video link, except for a few meetings held in person to fulfil certain formalities, while all Board meetings, or some strategic induction meetings, were held in person in order to improve engagement and interpersonal relations.

During the year 2023, the world economy continued to be characterised by uncertainty, affected by geopolitical tensions and ongoing conflicts. In this regard, the Board noted that the Poste Group's sphere of operations is mainly domestic and that it has limited business relations with the countries involved in the ongoing conflict.

During 2023, the Board updated the "Regulations governing the functioning of the Board of Statutory Auditors of Poste Italiane S.p.A.", adopted on 30 January 2020, that regulates the procedures for functioning of the Board of Statutory Auditors in compliance with the law, the By-laws and the provisions of Bank of Italy Circular 285 of 17 December 2013 and subsequent amendments and additions, as well as the principles enshrined in the Corporate Governance Code for listed Companies and the Code of Conduct of the Board of Statutory Auditors of listed Companies.

The Board of Statutory Auditors also continued its supervision of the events occurring after the close of the 2023 financial year, constantly discussing them with the corporate functions and the Statutory Auditor in order to assess their relevance.

On the above basis, the following information is provided in accordance with the provisions of Consob announcement DEM/1025564/2001, following the numerical order established thereby, as amended by announcement DEM/3021582 of 4 April 2003 and then by announcement DEM/6031329 of 7 April 2006.

A) Oversight of compliance with the law and the Company's By-laws and with correct corporate governance principles, the adequacy of the organisational structure and the administrative and accounting systems adopted by the Company, and with Legislative Decree 39/2010, as amended.

1. Most significant transactions having an impact on the results of operations and financial position and their compliance with the law and the By-laws.

The Board of Statutory Auditors verified compliance with the law and the Articles of Association, receiving information from the Directors during meetings and from the responsible functions, on the overall operating performance, the outlook for the Company and on the most significant transactions having an impact on the results of operations and financial position decided on and carried out by the Company and by Companies of the Group during the year, also verifying that the latter were carried out according to a process inspired by principles of correct administration.

On the basis of the information made available, the Board has come to the reasonable conclusion that these transactions are to be considered compliant with the law, the Articles of Association, the regulations and the principles of proper administration, and that they do not appear to be manifestly imprudent, nor risky or in conflict with the resolutions passed by the Shareholders' Meeting, nor such as to compromise the integrity of the company's assets.

These transactions are illustrated in the Report on Operations to which reference should be made, mentioning herein, due to their significance, the transactions indicated below, i.e. (i) the acquisition by Net Holding S.p.A. (60% owned by Poste Vita) of the controlling stake of 97.84% in Net Insurance (which in turn owns 100% of Net Insurance Life S.p.A.), (ii) the acquisition of the shares in Address Software S.r.l. held by third parties, enabling Postel to fully control it; (iii) the acquisition of the stake in MLK Deliveries S.p.A. (MLK) from Milkman S.p.A. (Milkman), which gives Poste Italiane full control. The shares sold constituted approximately 30% of the share capital and the transaction, which was already envisaged as an option under the contractual agreements signed in 2020, was completed in July 2023, (iv) the transaction to reorganise the investment in the sennder Group, under which Poste increased its stake in sennder Technologies from 1.7% to 10.2% (by transferring 35% of the shares held in sennder Italia) and maintained a 25% equity investment in sennder Italia.

The Board of Statutory Auditors monitored that the meetings were conducted in accordance with the By-laws and the laws and regulations that govern the operation of meetings; based on the information provided during the meetings of the Board of Directors ("BoD"), there is no evidence that the Directors engaged in transactions involving potential conflicts of interest with the Company.

2. and 3. Exceptional or unusual transactions, including those with Group companies or related and connected parties.

In this regard, the Board declares that:

• ✓ based on the assessments conducted, we are not aware of exceptional or unusual transactions with Group Companies, third parties or other related and connected parties;
• ✓ the procedures applied by the Company in conducting related party transactions comply with the principles contained in Consob Regulation 17221 of 12 March

2010, as amended by Consob Resolution 22144 of 22 December 2021, in force from 31 December 2021 and by the provisions of Bank of Italy Circular 285/2013 (Part III, Chapter 11), with reference to transactions between BancoPosta and Poste Italiane's related parties;

• ✓ infra-group or related party transactions did not give rise to critical issues;
• ✓ with regard to transactions carried out by relevant persons and by persons closely associated with them (provisions relating to "Internal Dealing"), the Board verified that the Company has adopted specific internal regulations and procedures for such disclosures following the revised interpretation provided by ESMA and the changes introduced by Consob Resolution 19925 of 22 March 2017.

The Board oversaw effective implementation of the rules governing related and connected party transactions, by attending all meetings of the Related and Connected Parties Committee ("CP Committee"). Moreover, the Directors have provided disclosure on intragroup and related and connected party transactions in the Report on Operations and the notes to the separate and consolidated financial statements, reporting the economic-equity effects of the transactions with related parties.

The current Guideline 'Management of Transactions with Related Parties and Connected Persons' was last approved in 2021.

In view also of the provisions of the Consob Regulation, in 2022 the Board of Statutory Auditors monitored the improvement of the documentation supporting the occurrence of the conditions for exclusion in the case of "excluded transactions". Therefore, also for the disclosures on transactions with related and connected parties concluded in 2023, pursuant to paragraph 4.6.1 of the Guideline, members of the Related and Connected Parties Committee and the Board were provided with additional documentation, signed by the Head of the Proposing function, in which both the reference parameters for the ordinary nature of the transaction (within the scope of the types envisaged by the Consob Regulation and the Bank of Italy provisions) and the existence of market or standard equivalent conditions are certified.

4. Oversight of the financial reporting process. Observations and proposals regarding any qualifications or emphases of matter contained in the Independent Auditor's report.

The Board of Statutory Auditors, identified by art. 19, paragraph 2 of the Consolidated Law as the "Committee responsible for internal and statutory auditing", oversaw the financial reporting process.

The Board of Statutory Auditors has verified the existence of adequate regulations and processes relating to the financial reporting process, examining the process that enables the "Manager responsible for financial reporting" ("Manager responsible for financial reporting" or "DP"), appointed pursuant to Law 262/2005, and the Company's Chief Executive Officer to issue the attestations required by art. 154-bis of the Consolidated Law on Finance.

On 18 March 2024, the Board of Statutory Auditors held a specific meeting with the Manager responsible for financial reporting to examine the Group's Internal Control System on Financial Reporting ("SCIIF"), during which the Manager responsible for financial reporting stated that the results showed the system to be effective allowing significant weaknesses to be ruled out. In addition, the Manager responsible for financial reporting represented that the activities for the certification of the Annual Report 2023 were carried out in accordance with the methodology provided for by the SCIIF Guideline and covered all the significant processes of the Companies, which constitute the perimeter of reference (so-called Large Portion): Poste Italiane, Poste Vita, Poste Assicura, SDA Express Courier, PostePay, BancoPosta Fondi SGR, Postel, Nexive Network and from this year LIS Holding and LIS Pay.

The Report by the Manager responsible for financial reporting shows that the audits performed on a systematic and continuous basis (audits and the self-assessment process), the methodological evolutions introduced and the progressive extension of the scope of analysis have contributed to maintaining a high level of supervision by the Manager responsible for financial reporting on processes relevant to financial reporting. The audits carried out showed a residual number of exceptions, confirming that a consolidated level of maturity of the internal control system had been reached.

The phases of the attestation process (Perimeter Identification, Risk and Control Assessment, Control Assessment, Deficiencies and Remediation Plans) are fully supported by the GRC-Archer Group IT Platform, in order to facilitate the coordination and integration between the activities of the Manager responsible for financial reporting and those of the other Compliance Specialists.

In addition, in order to comply with the provisions of the Business Crisis and Insolvency Code ('Crisis Code'), the Manager responsible for financial reporting continued to carry out activities, at Group level, to consolidate the process and information flows for the purpose of pinpointing possible signs of crisis or insolvency and loss of business continuity. The results of the monitoring conducted at Group level did not show any situations of crisis, insolvency or loss of business continuity.

The evaluation of the SCIIF was carried out on the basis of the following verification activities: (i) Self Assessment: process of self-certification of the controls performed by the Control Owners; (ii) Independent Monitoring: checks on the key controls performed by Internal Control; (iii) IT General Control: checks on the integrity of IT systems performed by DTO/Information Systems, with the support of external consultants; (iv) Segregation of Duties (SOD): assessment on the level of segregation on accounting systems, performed by the DP and (v) Letters of Attestation received from Management (First Levels of Poste and CEO of Subsidiaries), supplemented with selected disclosures and indicators for the purposes of the new Business Crisis and Insolvency Code.

The various project initiatives completed during 2023 include:

• − with reference to the provisions of the Business Crisis and Insolvency Code, for the Parent Company, a process and information flows envisaged by the current risk management model for the verification of possible signs of crisis or insolvency and loss of business continuity have been consolidated and formalised through a process of progressive application; the information flows governed by Model 262 have been supplemented, making provision for the preparation of specific information on the matter of business continuity issued by the Group Companies to the Manager responsible for financial reporting through the Letter of Attestation; the information has also been reported to the respective administrative and control bodies. Indicators useful for monitoring and detecting possible signs of business crisis were identified and shared, consistent with the provisions of the regulations, including: (i) indicators of financial indebtedness (e.g. overdue trade payables, payables to personnel); (ii) the 'Debt Service Coverage Ratio' indicator on projected cash flows from operations; (iii) ad hoc indicators constructed by taking into account the specific risks of the business and the characteristics of the companies. Finally, the operating procedure to formalise and regulate the process of corporate crisis management at Group level was published;
• − the extension of the process of assessing the control system to the companies LIS Holding and LIS Pay was completed, consisting of mapping and assessment activities required by Model 262, formalisation of the administrative-accounting procedures relating to the relevant processes of LIS Pay (Commission and Fee Management, Reporting Package and Supervisory Reporting) and LIS Holding (Commission and

Fee Management, Asset Management, Reporting Package): the checks carried out to assess the internal control system of the companies (Independent Monitoring, Self Assessment, IT General Controls) showed no significant aspects;

− with reference to the Polis Project, the "Polis Project Reporting" procedure has been formalised and published, which regulates the activities and controls implemented necessary to ensure the reliability and trustworthiness of the accounting reporting of expenses incurred by Poste for the implementation of project activities and the adequacy and effective operation of the SCIIF. Independent audits were carried out by a consultancy firm of high standing, which did not bring to light any major issues.

In terms of the 2024 activity planning of the Manager responsible for financial reporting, current project initiatives include: (i) the introduction of cross-company controls to assess the structural elements of the control system (e.g., control environment, risk assessment, etc.), aimed at ensuring a general context in which processes are executed and monitored in accordance with Group guidelines; (ii) the formalisation of the monitoring process of users with high privileges (SAP All, SAP New and Debug) and the correct assignment of the relative roles; the evolution of the Integrated Framework related to the Internal Control System on Sustainability Reporting.

The Board of Statutory Auditors analysed the methodological framework and the audit plan adopted by the Independent Auditor and acquired the necessary information during the course of its work, with information on the audit approach used for the various significant reporting areas, as well as receiving updates on the progress of the audit assignment and on the main aspects for the attention of the Independent Auditor.

The Independent Auditor, with which we also periodically met in compliance with the provisions of art. 150, paragraph 3, of the CLF, for the mutual exchange of information, has not informed the Board of Statutory Auditors of any actions or events deemed to be censurable or of an irregular nature requiring specific reporting pursuant to art. 155, paragraph 2, of the CLF.

The administrative and accounting procedures adopted in preparation of the separate and consolidated financial statements, and of any other financial communication, have been drawn up under the responsibility of the Manager responsible for financial reporting who, together with the Chief Executive Officer, has attested to their adequacy with regard to the nature of Poste Italiane and to their effective application.

The Board of Statutory Auditors has also examined the reports prepared by the Independent Auditor, appointed by Annual General Meeting of Poste shareholders to audit the separate and consolidated financial statements for the financial years from 2020 to 2028.

On 4 April 2024, the Independent Auditor issued its reports on the separate and consolidated financial statements for the year ended 31 December 2023, prepared pursuant to art. 14 of Legislative Decree 39/2010 and art. 10 of Regulation (EU) 537/2014. The Board of Statutory Auditors has noted that the Auditor has not pointed out any remarks or requests for information in its Reports and refers to the Reports issued by the Auditing Firm for the Auditor's opinions and statements.

The Board also noted that in the Additional Report prepared pursuant to Article 11 of EU Regulation No. 537/2014, the Auditor confirmed that the audit activities did not reveal any significant deficiencies in the internal control system in relation to the financial reporting process.

The Independent Auditor's Reports, issued in compliance with art. 10 of Regulation (EU) 537/2014, include information on key matters covered by the audit and the related audit procedures applied. These key aspects, as indicated in the Reports on the annual and consolidated financial statements (Estimate of the recoverable amount of the "Mail, Parcels and Distribution" business segment for the annual financial statements and (i) Impairment test of goodwill on the "Mail, Parcels and Distribution" CGU and on the "Payments and Mobile" CGU solely for the consolidated financial statements and (ii) First-time application of IFRS 17 - Insurance contracts and (iii) Assessment of liabilities for Insurance Contracts), as well as the opinions on the annual and consolidated financial statements, are in line with as indicated in the Additional Report intended for the Board of Statutory Auditors, in its role as Internal Control and Audit Committee, prepared pursuant to art. 11 of the aforementioned Regulation.

The above key aspects were the subject of detailed analysis and updating during the periodic meetings that the Board of Statutory Auditors held with the Independent Auditor, including that of the investee Poste Vita S.p.A. and the Administration, Finance and Control function ("AFC").

In addition to the above-mentioned issues, the Board of Statutory Auditors requested further clarifications from the AFC function, the Manager responsible for financial reporting, the Legal Affairs function and the Auditor, concerning (i) Evaluation of legal risks (Tax Credits), (ii) Provision for staff redundancy incentives, (iii) Estimates on provisions for risks and charges, as well as the nature and risks related to contingent liabilities with reference to legal disputes, (iv) Financial assets and liabilities, (v) LIS impairment test, (vi) Net Insurance impairment test, (vii) Impairment test on the equity investment held in Anima Holding S.p.A., (viii) Financial reporting and ESMA nonfinancial statement of 25 October 2023; (ix) Purchase Price Allocation processes for LIS, Plurima, Sourcesense and Agile, (x) European Single Electronic Format (ESEF) tagging. The AFC Function and the Manager responsible for financial reporting outlined the assessment logic adopted, as well as the support provided in terms of the accounting principles applied to the case. The line identified by management for the accounting treatment of the cases above has been analysed in detail and fully shared by the Independent Auditor.

The Board also held a specific meeting with the Auditor, in order to get an update on the progress of the activities carried out by the Company aimed at implementing "areas for improvement" suggested by the Auditor in the Additional Report pursuant to Article 11 of Legislative Decree No. 39/2010 of the year 2022. At the end of the meeting, the Board ascertained that the ideas had been taken on board by the Company and the Company had started the relevant activities, which were largely completed, as also indicated in the Additional Report pursuant to Article 11 of Legislative Decree No. 39/2010 for the year 2023. The Board of Statutory Auditors has verified that, with reference to the Impairment test, the methodology for determining the discount rate of annual cash flows has been updated, in order to reflect the scenarios characterising the current macroeconomic context, in the determination of the WACC, and the reference procedural framework has been updated in order to incorporate the implementation of specific controls within the valuation process. With regard to the issue of the purchase of tax credits by Poste Italiane, a subject characterised by continuous changes by the legislator and the publication of various Circulars issued by the Revenue Agency - Agenzia delle Entrate ("ADE") aimed at clarifying the interpretation of the regulations, as part of its supervisory activities, the Board of Statutory Auditors has held various meetings, attended by the heads of the functions BancoPosta, Legal Affairs, Administration, Finance and Control ("AFC"), AFC/Fiscal, Group Anti-Money Laundering and the Independent Auditors, in order to monitor the activities carried out by the Company and conduct an in-depth examination of the impacts of the regulations enacted from time to time on the activities carried out by Poste Italiane, including through the BancoPosta function, paying particular attention to the fiscal/tax, legal and accounting profiles, as well as aspects related to the risk and liability of assignees.

As part of this activity, the Board of Statutory Auditors, during 2023, continued to monitor the status of the seizure orders of the tax credits assigned in its tax coffers, notified to Poste Italiane in its capacity as purchaser of the tax receivables, even if a bona fide third party. During the course of the various meetings held, the Board took note of the losses recorded on tax credits and positively assessed the methodological framework used to determine the Provision for Risks and Charges, also in consultation with the Statutory Auditor, noting that the 2023 methodological approach was based on an update of the approach used for the financial statements for the year ended 31 December 2022, taking into account the facts and circumstances known up to the date of preparation of the financial statements.

In particular, the Board of Statutory Auditors examined in detail and endorsed the approach used to define the provision for risks and charges, which was based on a legal and accounting analysis performed by the Company, also with the support of external consultants, aimed at assessing overall the potential risks to which Poste Italiane might be exposed in the event that the tax credits acquired over time by the Company were to derive from fraudulent conduct.

The determination of the aforesaid provision necessarily entailed the use of a significant degree of professional judgment considering the current situation of significant uncertainty regarding the possible outcome of the proceedings and initiatives under way by the Judicial Authorities and the Revenue Agency and the actions undertaken by the Company to see its interests protected,

The Board of Statutory Auditors also noted that the Company, considering the continuing situation of interpretative uncertainty, prudently did not consider both credit losses and provisions for risks and charges to be tax deductible.

During 2023, the Board of Statutory Auditors monitored the administrative and accounting structure put in place by the Company to comply with "IFRS 17 - Insurance Contracts" which came into force on 1 January 2023. This standard has brought a major change to the methodologies for measuring, evaluating and representing insurance contracts, in the presentation of the profitability of the insurance business and, more generally, at the level of the entire company's operations, thus representing the most significant change in the last 20 years; its implementation project, carried out with the help of a leading advisory firm, has required huge investments, also from a technological perspective. In fact, the application of IFRS 17, whose objective is to make the results of insurance companies harmonised and comparable throughout Europe, has led to extremely significant changes in the representation of the insurance sector's results, moving from a presentation of results by volume (premiums written and claims expenses) to a representation more focused on contract margins.

Lastly, the Board of Statutory Auditors monitored the adequacy of the information provided in the Financial Report with regard to detailed information on insurance risks and financial risks related to contracts falling within the scope of IFRS 17 as required by ESMA for listed companies (Public Statement ESMA 32-193237008-1793 "European common enforcement priorities for 2023 annual financial reports" of 25 October 2023).

The Board of Statutory Auditors, which already in 2022 had monitored the project and the main actions identified by the Company to implement the provisions of the Crisis Code, in order to consolidate and formalise, through a path of progressive application, a process and information flows set out in the current risk management model for the detection of possible signs of crisis or insolvency and loss of business continuity, continued to monitor the initiatives put in place over the course of 2023, both through a specific meeting with the Manager responsible for financial reporting aimed at receiving an update on the initiatives undertaken by the AFC function to comply with the Crisis Code of Group Companies, but also in the context of the exchange of information with the Control Bodies of the main Subsidiaries. The Board noted that the entire process for compliance with the Crisis Code was included in the SCIIF from scratch. The Board also took positive note of the publication of the operating procedure 'Preventive Management of Business Crisis and Insolvency', whereby roles, responsibilities, operating model, information flows and indicator monitoring reporting were formalised.

The Board of Statutory Auditors, while considering that the Poste Group, as a listed company, already has a structured control system for Group risks, and noting that the Parent Company has properly overseen its guidance and coordination activities, felt that in order to make the process effective it was essential for each subsidiary to identify its specific sector and/or business risks in order to define indicators modelled on the company's situation, augmenting the warning indicators already defined by the Parent Company: therefore, during the course of the information exchanges with the Control Bodies of the Subsidiaries, the Board has always suggested identifying "customised" indicators that could enable the identification of specific sector and/or business risks.

The financial statements also contain information on any liabilities and costs that may arise from pending legal proceedings. The Board of Statutory Auditors, together with the relevant Company functions, examined in detail the methodology and process adopted in the analysis of litigation and in the analysis and evaluation of provisions for risks and

charges for major disputes, and it requested to be periodically and promptly updated on the evolution thereof.

In line with the recommendations contained in the joint Bank of Italy/Consob/ISVAP document No. 4 of 3 March 2010 and Consob Communication No. 0003907 of 19 January 2015, the goodwill impairment test procedure applied by the Group, in compliance with international accounting standard IAS 36 and the recommendations contained in the Organismo Italiano di Contabilità (Italian Accounting Standards Setter) document "Impairment and Goodwill" of May 2011, is submitted annually to the advisory opinion of the CCR and, subsequently, to the prior approval of the Company's Board of Directors.

The explanatory notes to the half-yearly report as of 30 June 2023 and to the financial statements as of 31 December 2023 provide information and the results of the valuation process carried out by the Company: the Board of Statutory Auditors, through discussions with the Manager in charge of preparing the Company's financial reports and with the independent auditors, during the meetings periodically scheduled as part of the scheduled exchanges of information for the performance of their respective duties, monitored said process and has no observations in this regard. In detail, following the identification of groups of assets able to generate cash inflows largely independent of those deriving from other assets or groups of assets, in addition to the Mail, Parcel & Distribution ("MP&D") Cash Generating Units ("CGU"), the Payments & Mobile ("P&M") and Net Insurance (sub-consolidated Net Insurance - Net Insurance Life) CGUs were identified, on which the Impairment test as of 31 December 2023 was performed consistently with: (i) the accounting standard IAS 36 'Impairment of Assets'; (ii) the indications of the relevant institutional bodies (ESMA, Consob); (iii) the Impairment Test Implementation Guidelines approved by the Board of Directors of Poste Italiane in 2016 and updated in 2023; and (iv) the organisational model of the Poste Group. The Board of Statutory Auditors verified that the Weighted Average Cost of Capital (WACC) and the Cost of Equity (Ke) used for the Impairment tests as at 31 December 2023 were determined using the method developed internally and revised with some methodological refinements compared to previous years. The Board noted that the refinements resulted in more conservative WACC and Ke values, which led to greater prudence in the impairment test exercise. The growth rate ('g-rate') was determined consistently with previous years (source: International Monetary Fund) and reference was made to the Strategic Plan 2024-2028 (approved by the Board of Directors on 19 March 2024) to estimate the value in use of the three CGUs. The discounting of the period's operating flows was carried out for the MP&D and P&M CGUs using the Discounted Cash Flow ("DCF") method, which provides for the discounting of annual operating cash flows at a rate representative of the weighted average cost of capital, while for the Net CGU, in order to take into account the specific characteristics of the insurance sector in which it operates, the valuation method used was the Dividend Discount Model, which foresees the discounting of expected dividend flows, consistent with the maintenance of the capital requirements requested by the Supervisory Authorities, at a rate representative of the cost of capital. The scope of the MP&D CGU included Postel, Nexive, Sengi, MLK, SDA, Consorzio Logistica Pacchi, Poste Air Cargo, Patenti Via Poste, EGI, Poste Welfare Servizi, Consorzio Poste Motori, Plurima, Agile Lab and Sourcesense, and the terminal value was estimated by projecting in "perpetuity" the cash flows of the last year of the explicit period (2028), adjusted for components that cannot be projected beyond the Plan period. The normalisations applied, determined through the continued use of the method used in the previous impairment tests, relate to personnel expenses (mainly redundancy incentives, alignment of labour costs to the exact headcount at the end of 2028), adjustment of amortisation and sterilisation of Polis project deferral.

The companies Poste Pay, LIS Holding and LIS Pay have been included within the scope of the P&M CGU, given that, following the completion of the integration and reorganisation processes of LIS Holding and LIS Pay, and taking into account the strong business and infrastructure interests established, their cash flows are closely interrelated within the sector.

The Board of Statutory Auditors, having also consulted with the Statutory Auditor, positively assessed the methodological framework underlying the impairment tests performed on the MP&D, P&M and NET Insurance CGUs and took note of the test results on the basis of which the appropriateness of the balance sheet values was confirmed (also following sensitivity analyses on WACC and g). The Board of Statutory Auditors acknowledged that the Administrative Body carried out the periodic monitoring of the Impairment test referring to the MP&D CGU and approved the Impairment tests of the Mail Parcel & Distribution, Payments & Mobile and Net Insurance CGUs in March 2024.

The impairment test on the investment in Anima Holding S.p.A. - performed by taking into account that the future cash flows used in determining the value in use are those observable as consensus for the main balance sheet indicators (Revenues, Pre-tax Result and Net Profit) estimated by analysts for the next three years and available periodically on the

Company's website - did not show the need to make further write-downs at year-end after the one already made at 30 June 2022.

The Independent Auditor confirmed to the Board of Statutory Auditors its agreement with the overall impairment procedure, as well as the detailed application profiles. The impairment tests showed that the Enterprise Value was higher than the carrying amount, making impairment unnecessary.

The Independent Auditor has not reported any events or circumstances identified during the audit that might cast significant doubt on the entity's ability to continue as a going concern, nor has it reported any significant deficiencies in the internal control system on financial reporting and/or in the accounting system, or any significant instances of noncompliance, whether effective or assumed, with laws and regulations or the By-laws, that have come to light during its audit.

The Independent Auditor also issued on 4 April 2024 the Report on the consolidated nonfinancial statement pursuant to article 3, paragraph 10, Legislative Decree no. 254/2016 and article 5 Consob Regulation no. 20267 ("NFS"). Based on the work performed, the Independent Auditor stated that nothing has come to its attention that would cause it to believe that the Poste Italiane Group's Non-financial Statement for the year ended 31 December 2023 has not been prepared, in all material respects, in compliance with articles 3 and 4 of the Decree and with the GRI Standards.

The Board of Statutory Auditors, having taken note of Legislative Decree 254/2016 on the disclosure of non-financial information, supervised, in the exercise of its function, compliance with the provisions contained therein with regard to the preparation of the NFS as part of the 2023 Integrated Report, approved by the BoD on 19 March 2024. As provided for in Article 3(7) of Legislative Decree No. 254/2016, the Board of Statutory Auditors, in line with its functions and duties assigned to it by law, monitored compliance with the rules governing the preparation and publication of the NFS within the scope of the integrated report. In particular, the Board of Statutory Auditors monitored the adequacy of the organisational structures adopted by the Group in relation to the strategic objectives pursued in the socio-environmental field and the existence of adequate rules and processes to safeguard the process of collecting, forming and representing results and non-financial information and, with reference to the latter aspect, also the compliance with the EU Taxonomy Regulation.

Through a specific meeting with the Independent Auditor, the Board of Statutory Auditors has overseen compliance with the provisions of Legislative Decree 254/2016, within the scope of the responsibilities assigned to us by law.

With regard to ESG, while also participating in the Sustainability Committee meetings, the Board of Statutory Auditors had the opportunity to continuously monitor the progress of the ESG plan, as well as the measures implemented by the Group and aimed at achieving the defined targets.

The Board of Statutory Auditors has verified that the disclosure required by ESMA in terms of reporting on climate-related issues has been provided in the 2023 Integrated Report and, in confirmation of Poste Italiane's commitment to combating climate change it should be noted that as of 2021 the Group has officially joined the supporters of the Task Force on Climate-related Financial Disclosure ("TCFD") and that Poste Italiane was one of the 320 organisations to adhere as early adopters to the new set of recommendations published by the TNFD to support organisations in identifying, assessing, managing and disclosing relevant issues related to nature (biodiversity, waste and water management, climatealtering agents, etc.), consistent with global policy objectives and international sustainability reporting standards. Finally, with the aim of reflecting potential future developments regarding climate change, Poste Italiane again this year carried out a review of climate scenarios using as a reference the documents drawn up by the main organisations working in this field.

In line with previous years, the indicators used for the preparation of the Integrated Report were reclassified according to SASB (Sustainability Accounting Standards Board) standards, with the aim of contributing to the development of a shared and universal framework for non-financial reporting. During 2023, the European Commission published EU Delegated Act No. 2023/2486 (Taxonomy Environmental Delegated Act), which supplements the Taxonomy Regulation (Regulation (EU) No. 852/2020) by setting additional technical screening criteria for determining under which conditions an economic activity can be considered to contribute substantially to the sustainable use and protection of water and marine resources, to the transition to a circular economy, to the prevention and reduction of pollution or to the protection and restoration of biodiversity and ecosystems, and if it does not cause significant harm to any other environmental objective. In order to provide a clear and representative disclosure of the Group's business profile, actively contributing to the achievement of the European Union's sustainable development objectives, Poste Italiane has adopted a transparent methodological approach, which includes a careful analysis of the Group's economic activities, as well as the regulatory framework of reference. For this reason, Poste Italiane has provided for a reporting method that allows both industrial operations (Non-Financial Undertakings) and financial operations (Financial Undertakings) to be disclosed.

In 2023, Poste Italiane continued its evolutionary path towards acquiring and consolidating its awareness of sustainability issues, developing a materiality analysis process aimed at identifying priority issues, based on the significance of the related impacts, to be included in the Group's Sustainability Strategy and to be formalised in terms of policies and targets. On the basis of the findings of the materiality analyses and, therefore, the priority areas and themes for action, Poste Italiane has outlined its ESG strategic plan, also taking into account the evolution of international sustainability principles. The update of the Guideline "The ESG Process in the Poste Italiane Group", in 2022, is part of the important path undertaken over the years by Poste Italiane to develop its business strategy, structurally integrating it with Environmental, Social and Governance (ESG) Principles and orienting the Group's efforts towards the creation of shared value for stakeholders and the consolidation of its reputation.

With a view to continuous improvement, in 2023 Poste Italiane continued with the approach initiated in 2021 - and subsequently refined in the following years - aimed at anticipating the exercise of the principle of double materiality envisaged by the Corporate Sustainability Reporting Directive (CSRD) before its entry into force, set for FY 2024. Therefore, the Group maintained the alignment of its materiality analysis methodology to the provisions relating to the 2021 update of the GRI standards for impact materiality (inside-out perspective), taking into account the provisions of EFRAG. In this respect, the Company has already started to apply the outside-in perspective on a voluntary basis.

According to the impact materiality perspective, the Company has examined the current or potential significant impacts on people and the environment directly related to its activities, products and services, including upstream and downstream activities in its value chain. Furthermore, from the perspective of financial materiality, it considered sustainability risks and opportunities that may positively or negatively affect future cash flows, thus determining the creation or erosion of corporate value in the short, medium or long term, influencing its development, performance and positioning. In order to identify current and potential positive and negative impacts, an in-depth scenario analysis was performed on the Group's activities, its business relations, the sustainability context in which it operates and the expectations of its stakeholders.

Finally, as part of the Strategic Risk Assessment, which is conducted annually by the Group Sustainable Development, Risk and Compliance function with the aim of identifying and assessing risks from an integrated perspective that may undermine the full achievement of the strategic objectives defined in the Poste Italiane Strategic Plan, emerging risks have been broken down in line with the common metrics defined by the WEF in relation to the achievement of the SDGs, and for each emerging risk, sustainability pillars and potentially impacted capital resources have been associated.

During 2023, the Poste Italiane Group confirmed its position as one of the leading companies in Environment, Social and Governance issues at national and international level, obtaining multiple ESG awards.

During the year, and even before the regulatory framework was defined, the Board of Statutory Auditors held a specific meeting with the Statutory Auditor to discuss the CSRD, which Poste - as a PIE with more than 500 employees - will have to comply with starting with the financial statements as at 31 December 2024, even though some indicators will not yet be legally binding at that date. The CSRD has, in particular, introduced the obligation for companies with similar characteristics to those already subject to the Non-Financial Reporting Directive to report sustainability information by including it in the management report. This obligation will apply as of the financial year beginning 1 January 2024; consequently, the figures for the financial year 2024 will be included in the management report prepared in 2025. The sustainability information required by CSRD is to be reported using the European Sustainability Reporting Standards (ESRS), developed by EFRAG, with the aim of creating a single, mandatory reporting standard at EU level and, at present, will be subject to limited assurance by an Auditor. During the meeting with the Statutory Auditor, the Board was informed of the main aims of the CSRD - whose general objective is to contribute to the transition towards a fully sustainable and inclusive economic and social system - and of the specific innovations and requirements that will be introduced to meet the expectations introduced by the CSRD; the changes that will be made to the Report that the Auditor will issue downstream of his work were also examined, which will in any case remain within the scope of Negative Assurance, since it is expected that the assurance standard will be adopted in a Reasonable form by 1 October 2028. The Board of Statutory Auditors, in noting that Poste, also with the support of a leading consulting firm, has launched a project to change to the new regulations, extended to all Group companies, aimed at issuing an attestation on the integrated report and thus on what will

be the sustainability report, will continue to monitor the progress of the project activities. In addition, a specific induction session was held on this topic for Directors and Auditors. The Board of Statutory Auditors held a specific meeting with the Poste Italiane Group's Data Protection Officer ('DPO'), during which it was informed that the Group has adopted a document framework on the protection of personal data available to all Poste Group employees in the 'Privacy' section of the corporate intranet, consisting of a series of Guidelines and Procedures, divided by area, based on the specific type of compliance required by the GDPR. These safeguards, with a view to uniform management of personal data, compliance and continuous improvement, guarantee the compliance with the GDPR provisions, ensuring respect for the principles enshrined therein.

5. and 6. Information on any complaints presented pursuant to art. 2408 of the Italian Civil Code and petitions

During the 2023 financial year, no statements were received pursuant to Article 2408 of the Italian Civil Code, but only one notification, sent by a shareholder to report a press release concerning the start of the investigation against Poste Italiane S.p.A. by the Antitrust Authority, a matter that the Board of Statutory Auditors is monitoring.

In this regard, it should be noted that the commencement of the investigation against Poste Italiane S.p.A. by the Antitrust Authority had already been communicated to the Board of Statutory Auditors on 8 February 2024, in compliance with the information flows provided for by the Poste Italiane Internal Control and Risk Management System (SCIGR).

Furthermore, during the year and up to today's date, the Board of Statutory Auditors has received various reports of disservices from customers/third parties, which cannot be configured as complaints pursuant to art. 2408 of the Italian Civil Code, following which it asked the Company to carry out the necessary investigations with the competent functions aimed at obtaining clarifications on the events subject to reporting. On the basis of the checks carried out on the reported facts, which the Company took prompt action to manage and resolve, the Board did not find any irregularities to be reported to the Shareholders' Meeting.

7. and 8. Oversight of the independence of the Independent Auditor. Disclosure of any additional non-audit engagements or ongoing relations with associates of the Independent Auditor and the related costs.

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The Board of Statutory Auditors has received the Independent Auditor's annual declaration verifying its independence, drawn up pursuant to art. 6, paragraph 2, letter a) of Regulation (EU) 537/2014 and paragraph 17, letter a) of ISA Italia 260, which confirms compliance with the ethical principles required by articles 9 and 9-bis of Legislative Decree 39/2010, not having identified situations that could compromise the Independent Auditor's independence in the period from 1 January 2023 until the date of issue of the declaration (4 April 2024).

Annexed to the notes to the Company's separate financial statements is a section entitled "Disclosure of fees paid to the Independent Auditor in accordance with art. 149-duodecies of the Consob Regulations for Issuers", which includes a table showing the fees payable to the Independent Auditor, Deloitte, and companies within its network for the year under review.

In view of:

• ✓ the independence declaration issued by Deloitte pursuant to art. 6, paragraph 2, letter a) of Regulation (EU) 537/2014 and paragraph 17 of ISA Italia 260 and the transparency Report prepared by it and published on its website pursuant to art. 13 of the above Regulation;
• ✓ the engagements assigned to the Independent Auditor and companies within its network by Poste Italiane and Group Companies;

the Board is not aware of any situations in which the Independent Auditor's independence has been compromised.

In line with Regulation (EU) no. 537/2014 and pursuant to the Group's "Guidelines for the assignment of engagements to the Independent Auditors" most recently updated on 11 May 2022, the Board of Statutory Auditors, during the 2023 financial year and until the issue of this Report, issued a favourable opinion on the following additional tasks entrusted by the Group to companies belonging to the network of the Independent Auditors:

Engagement	Amount	Company
Extension of the activities entrusted to Deloitte Consulting under the scope of the "Sector actions in the field of multi-bank counting rooms" Project	€ 40,000 (plus VAT)	Deloitte Consulting S.r.l.

Engagement of auditing the Solvency	€ 48,000 (plus	Deloitte &
Financial Statements and limited audit of the	VAT and out-of	Touche S.p.A.
Solvency Capital Requirement ('SCR') and	pocket expenses
Minimum Capital Requirement ('MCR')
with reference to Net Insurance S.p.A.	of 5% of the fees)
Engagement of auditing the Solvency	€ 22,000 (plus	Deloitte &
Financial Statements and limited audit of the	VAT and out-of	Touche S.p.A.
Solvency Capital Requirement ("SCR") and	pocket expenses
Minimum Capital Requirement ("MCR")	up to a maximum
with reference to Net Insurance Life S.p.A.	of 5% of the fees)

In addition, the Board received information on the appointment of Deloitte as Independent Auditor for the three-year period 2023-2025 for the following newly acquired companies:

Engagement	Amount
Net Insurance S.p.A. (Audit of annual financial statements, review of reporting package and review of half-year report for the nine-year period 2023-2031)	€ 96,000
Net Insurance Life S.p.A. (Audit of annual financial statements, review of reporting package and review of half-year report for the nine-year period 2023-2031)	€ 64,000
Sourcesense Platforms S.r.l. (Statutory audit of the annual accounts for the three-year period 2023-2025 )	€ 11,000

The assignment of engagements to the Independent Auditors is governed by the "Guideline for the assignment of engagements to the Independent Auditing Firm" ("Guideline") issued in 2017 in order to ensure the transposition of the European regulatory evolution, aimed at safeguarding the independence requirement of the entity entrusted with the statutory audit of the accounts and to provide guidance on the assessment process when Poste and its subsidiaries confer engagements to the Independent Auditors, its network or related entities, subsequently updated on 11 May 2022. The Board also examined the additions

(for both the statutory audit engagement and the 'non-audit services') that determined the change in the Auditor's fee as at 31 December 2023 compared to the fees paid at the beginning of the mandate in 2020.

The Board of Statutory Auditors, with the support of the AFC function, has periodically monitored compliance with the quantitative limits for assignments to the Independent Auditor and its network for services other than auditing - which, as established by art. 4 paragraph 2 of Regulation (EU) no. 537/2014, must be capped at 70% of the average fees paid in the previous consecutive three years for the audit of the accounts of the audited entity.

In any case, based on the Guideline "Assignment of engagements to the Poste Italiane Group's Independent Auditors - Poste Italiane Group", except for reasons of opportunity related to the specific professional content and where the effectiveness requirements of the assignment to be assigned require it, it is not normally permitted to assign professional engagements classifiable as "Other services" to the Principal Auditor or to entities belonging to the Network of said Auditor.

9. Disclosure of opinions issued pursuant to the law during the year.

The Board of Statutory Auditors issued: (i) the opinion on the proposal formulated by the Remuneration Committee to determine the remuneration of the Chairman of the Board of Directors pursuant to Article 2389, paragraph 3, of the Italian Civil Code on 27 June 2023; (ii) the opinion on the proposal formulated by the Remuneration Committee for the determination of the remuneration to be paid to the members of the Internal Board Committees on 28 June 2023; (iii) the opinion on the economic and regulatory treatment of the Chief Executive Officer, pursuant to Article 2389, paragraph 3, of the Italian Civil Code on 27 September 2023. In addition, during the current year, on 27 February 2024, the Board of Statutory Auditors issued two further opinions on the contractual determination proposal concerning the new economic and regulatory compensation of the Chief Executive Officer, pursuant to Article 2389, paragraph 3, of the Italian Civil Code, and on the proposal, to be brought to the attention of the Shareholders' Meeting on a voluntary basis, to update the compensation to be paid to the members of the Internal Board Committees, pursuant to Article 2389, paragraph 3, of the Italian Civil Code.

10. Disclosure of the frequency and number of meetings of the Board of Directors, the Executive Committee and the Board of Statutory Auditors.

During the year, the Board of Statutory Auditors took part in a total of 79 meetings, meeting 37 times in the Board of Statutory Auditors (of which 10 meetings held jointly with the Control and Risk Committee), with an average duration of the meetings of around 3 hours and 30 minutes, participating in all the meetings of the Board and those of the internal Board Committees; more specifically, the Board attended 12 meetings of the Board of Directors, 10 meetings of the Control and Risk Committee (held jointly with the Board of Statutory Auditors), 6 meetings of the Sustainability Committee, 6 meetings of the Nominations and Corporate Governance Committee, 10 meetings of the Related and Connected Parties Committee, 7 meetings of the Remuneration Committee, as well as 1 Ordinary General Meeting.

Lastly, the Magistrate appointed by the Italian Court of Auditors to oversee Poste Italiane's financial management pursuant to Law no. 259/1958, art. 12 has been invited to attend meetings of the Board of Statutory Auditors with external relevance.

11. and 12. Observations on compliance with correct corporate governance principles and the adequacy of the organisational structure.

The Board of Statutory Auditors oversaw, within the scope of our responsibilities, the adequacy of the Company's organisational structure and, more generally, that of the Group as a whole, based on the information and constant updates provided by the Company on its organisational arrangements, as well as by dedicating a specific meeting to this issue with the Head of the Human Resources and Organisation function ("RUO"). The Board was fully informed of the main organisational changes that had taken place, most recently those affecting the first quarter of the year, which resulted in a new structure of responsibilities at the top management level, concluding a transformation project that had been under way for some time. In fact, starting from the 2017 financial year, the Group was characterised by an omni-channel transformation with precise growth guidelines in the main business segments, which saw the establishment of the Corporate Affairs function with the role of guiding, controlling and coordinating the corporate structure, based on coordination and integration of competences; thereafter, in a highly competitive market context such as the current one, it became appropriate to adjust the Company's organisational structure through a redistribution of responsibilities and competences among the top corporate governance functions in order to make it even more responsive to current operations, and therefore the Board of Directors' meeting of 28 February 2024 approved the new organisational model that sees (i) strategic development and the preparation of corporate strategies concentrated, with particular reference to the "supervised" businesses, on the Chief Executive Officer and (ii) the management of the Group's industrial businesses on the figure of the General Manager, appointed to report directly to the CEO, with the simultaneous elimination of the role of Co-General Manager as well as the Corporate Affairs function.

Furthermore, the Board took note of the main organisational operations that concerned: (i) the Postal, Communication and Logistics area, in which a matrix-based organisational model was introduced, with the identification of Business and Process Managers, and the tools available to the PCL function were further strengthened; (ii) the establishment of the new Group Logistics Strategy function, in consideration of the important role played by the logistics business in the overall strategy and transformation required to cope with the continuous, major developments of the relevant market; (iii) the strengthening of the Business and Public Administration Market function; (iv) the strengthening of anti-money laundering and anti-terrorism supervision, in line with the evolution of the regulatory framework of reference, through the redefinition of the perimeter of responsibility and the related structure of the Group Anti-Money Laundering function; (v) the establishment of the Premium and Private Marketing function responsible, inter alia, for activities relating to the analysis of characteristics and needs, the identification of the target market as well as opportunities for the evolution of the offer and service models for Private and Premium customers; (vi) the organisational strengthening of the ICT and Third Party risk areas for the recent changes in the supervisory regulations (40th update of Circular no. 285 of the Bank of Italy and the DORA Regulations); (vii) defining the scope of responsibility and organisational structure of the Group's Strategic Marketing function, to which the Poste Group's marketing structures functionally report.

With regard to the adequacy of the organisational structure, reference is also made to what has already been indicated in paragraph 4 on the implementation of the warning indicators set out in the Crisis Code. In this regard, in accordance with the guidelines of the National Institute of Chartered Accountants and Accounting Experts in its March 2024 document on the new report of the Board of Statutory Auditors, it is specified that the Board:

• did not make any reports to the administrative body pursuant to Article 25-octies of Legislative Decree No. 14 of 12 January 2019;
• it has not received any reports from public creditors pursuant to Article 25-novies of Legislative Decree No. 14 of 12 January 2019.

Therefore, taking the above into account, the Board of Statutory Auditors has not identified any elements that could lead it to deem the organisational structure inadequate.

13. Oversight of adequacy of the Internal Control and Risk Management System.

With regard to the Internal Control and Risk Management System, the Board has noted the information on the system provided in the Report on Corporate Governance and the Ownership Structure on the Internal Control and Risk Management System.

The Board of Statutory Auditors met periodically with the Head of Poste Italiane's Internal Control function and, among other things, conducted in-depth discussions of the results of the activities carried out in 2023, during the various specific meetings; it also acknowledged, during March 2024, the "Group Report on Assessment of the adequacy of the 2023 Internal Control and Risk Management System ("SCIGR")", drawn up by Poste Italiane's Internal Control function, certifying that "at the date of this report and for the relevant reporting period, the internal control and risk management system, taken as a whole, is fit for the purpose of mitigating the risks that threaten the successful pursuit of the Company's objectives".

In expressing this assessment, the Internal Control function, in addition to integrating the assessment results represented during the year by the other corporate control functions envisaged by the SCIGR, considered (i) the main developments in the SCIGR and, in particular, the initiatives to strengthen it, (ii) compensatory controls and improvement actions implemented and/or in the process of being implemented in response to activities carried out and findings relating to the SCIGR highlighted by the Control Function and/or BancoPosta's Internal Audit functions and the Audit functions of Group Companies, (iii) additional events with potential impacts on the SCIGR, including corporate project initiatives in specific operating areas, carried out or in the process of being progressively implemented, (iv) evidence deriving from the management of the Whistleblowing reporting system.

The audit results received by the Board, as well as the summary concerning the overall assessment of the SCIGR, showed that in 2023, the overall assessment value was an improving score that confirms an assessment of full adequacy, respecting the balance between effectiveness and the low cost nature of the control system.

The activities envisaged in the 2023 Audit Plan were completed by ensuring the planned levels of audit coverage of business processes, necessary to express the Overall Assessment of the Internal Control System from a Positive Assurance perspective. In addition, a high level of coverage was also achieved of multiple processes concerning Group Subsidiaries, taking into account the supervision performed by the Audit functions of Group Companies, where present.

The control system of the 'Information Technology' area, which had a slightly declining adequacy rating last year, was strengthened by the completion of the Action Plans for the platforms for electronic document management (GECT) and for administrative-accounting management (SAP ERP S/4 HANA), as well as by the introduction of cross-sector controls, a new model for security updates, automatisms for vulnerability management, and standards for the security of cloud resources and micro-services. The areas to be strengthened lie in the area of IT security, whose weaknesses relate mainly to software obsolescence.

For Transport Network Management, although the PCL function was found to have initiated evolutionary initiatives, with the revision of the business model and the adaptation of the logistics network to the changed market requirements for traditional products and new value-added services, the audits carried out confirm an assessment of the control system at the limit of adequacy.

The Off-Premises Channel, attributable to the management of Business customers, which last year had shown an Internal Control System that was not yet fully adequate, in terms of monitoring revenue assurance objectives, although some developments are in progress, recorded a slight improvement, even though there are still some areas of weakness in the revenue assurance of the parcels sales contracts entered into by third-party networks or partner channels and in the integration between the various commercial channels, while the delivery and collection of parcels at lockers and tobacconists were more consolidated, thanks also to the computerisation of controls.

The management of parcels, despite developments in intra-group logistics with the automation of hubs, was at the lower limits of adequacy, as controls over the Group's marketing and sales processes, supplier management and revenue assurance, as well as the structuring of cross-sector monitoring, could be improved.

The Board of Statutory Auditors, also following the meetings held with the Control Bodies of the most relevant Group Companies, periodically acquired information on the risk areas present in the Subsidiaries as a result of certain reviews of the Group's organisational

structure. Based on the audit findings received by the Board, as well as the summary relating to the overall assessment of the SCIGR at the Subsidiaries, the Board noted that the Internal Control System of the Group Companies is still not homogeneous; for some Subsidiaries (in particular SDA, Postel, Poste Air Cargo, Nexive and MLK) the opportunity to improve certain aspects relating to the management of the Group's ESG areas was noted, while for BancoPosta Fondi SGR, for example, the need to update the ESG governance process model emerged. In Poste Welfare Servizi, an administrative service in the supplementary healthcare sector, areas for improvement emerged, mainly related to the monitoring of KPIs and business objectives and to controls to ensure the reliability of billing data.

Areas for improvement also emerged in the SDA Subsidiary with regard to remuneration, contributions and insurance of personnel employed at the agencies contracted by SDA, while for Nexive's partner branches, areas for improvement were highlighted in the application of controls at certain stages (stock and reporting of outcomes) and with regard to labour and OSH regulations.

With regard to MLK, areas for improvement have emerged that can be traced back to the control of the various process areas in terms of risk analysis and formalisation of activities, controls and related responsibilities, while an insourcing process is under way, aimed at transforming MLK into a specific technological competence centre.

On the other hand, there have been developments in the integration of Sengi into the Group and in the revision of processes with a view to making them more efficient (Lean Project), although actions to strengthen the control system have yet to be implemented.

In summary, while noting a positive process in progress, the evidence points to the need for further consolidation of the Action Plans to achieve control levels in the Subsidiaries in keeping with the Parent Company's standard.

The Board emphasises the importance of maintaining a constant focus on the areas of improvement identified and monitoring the development of the Control System in the Subsidiaries.

In 2024, it became necessary to adjust the Company's organisational structure through a redistribution of responsibilities and competencies among the top corporate governance functions in order to make it even more responsive to the current business and market environment and to achieve the challenging objectives of the new strategic plan more effectively. TO this end, in March 2024, the Board of Directors revised the top management structure with the creation of the figure of General Manager, reporting to the Chief Executive Officer, with the responsibility of supervising and coordinating the activities of almost all organisational structures, thus eliminating both the previous role of Co-General Manager and the organisational structure, replacing the Corporate Affairs ("CA") function in the role of directing, controlling and coordinating the corporate structure. In 2023, the Company continued the process of strengthening of the SCIGR as an enabling factor for the consolidation of the processes, which are based on the principles of integrity, transparency, legality, sustainability and value creation, consolidating the path undertaken for the development and continuous improvement of the governance and risk management model, to ensure that it is fully aligned with the principles defined by the Corporate Governance Code, with international regulatory standards, as well as with the objectives of integrity and full traceability of the activities that represent the key principles of the group; furthermore, as part of the activities aimed at developing the governance controls, Poste has defined an integrated process at Group level that makes it possible to strengthen or create operational synergies between the various specialised controls units and to guarantee unitary governance, also thanks to a clear definition of the roles and responsibilities of the players involved.

Also during 2023, multiple initiatives were implemented aimed at strengthening and continuing to develop the SCIGR; in particular, we highlight:

• − the inauguration of the new fraud prevention centre with the aim of ensuring the security of transactions carried out on-line and in all post offices;
• − the evolution of the third-party network development model, which was entrusted to the subsidiary LIS Holding, replacing the previous commercial oversight entrusted to the "Business and Public Administration Market" function, in order to exploit synergies in the challenges offered by the commercial services market;
• − the updating of the "Group Process Model" in which the category of 'hybrid' processes is introduced for all companies, alongside business and staff processes, as they are both 'enabling' and 'business' processes, emphasising the focus on green issues;
• − as part of Poste's transformation towards the role of an 'all-round' logistics operator, the establishment of the "Transformation Governance" function reporting directly to the Head of the PCL function, with the task of overseeing innovative projects, ensuring consistency with the multi-year strategic plan and for objectives related to the green transition;
• − the establishment within the "Business and Public Administration Market" function of two new sales areas dedicated to the offer of express courier and parcel products and services and the related business development, and two sales functions for healthcare logistics and digital solutions;
• − as part of the development of services for the health and well-being of Poste's employees, the creation of the "Medical Centre and Health Services" function;
• − in PostePay, with a view to strengthening business functions in support of business plan objectives and risk and outsourcing controls, in line with supervisory guidelines, the establishment of the "Operating Systems and Outsourcing Governance" and "Energy Risk Management" functions;
• − also at PostePay, as part of the growth and diversification path envisaged in the "SI24+" Plan, the strengthening of control functions, with the redefinition of the perimeters of responsibility of the "Risk Management & Compliance" and "Internal Audit" functions;
• − in Poste Vita, the establishment of the "Operations Performance Management and Data Governance" function, with the task of ensuring the integrated monitoring of the performance indicators of the "Insurance Operations" function and the service levels provided;
• − the reactivation of the Credit Transfer service, limited only to the 'first assignments' and the establishment of the "Legal Foreclosure and Construction Credits" function within Legal Affairs, which, among other things, is responsible for ensuring the monitoring and management of civil and criminal actions for the recovery of outstanding receivables arising from building bonuses and/or regulatory provisions.

In addition, the Board of Directors has implemented various organisational initiatives designed to strengthen the Internal Control System, through the approval:

• − updating of the Internal Rules for the procedures for the awarding of works, services and supply contracts in the light of the new Public Contracts Code (Legislative Decree no. 36 of 31 March 2023), pursuant to Art. 4.1 of the Guidelines "Corporate Regulatory System 24 July 2023";
• − the updating of the "Group's Anti-Money Laundering Guidelines";
• − the updating of the "Guidelines for Internal Auditing Poste Italiane Group";
• − the updating of Poste Italiane's Code of Ethics.

During 2023, the Group's purchasing management, following the centralisation that started in June 2018, reached an advanced centralisation process and the Purchasing function has

now been consolidated as a reference point for the adoption of the Group Purchasing Policies, in planning and reporting, as well as in overseeing the entire purchasing process. Furthermore, during said year, Poste confirmed its position among the main economic and production companies in the country qualified in terms of sustainable management of purchasing processes and relations with suppliers, maintaining the certification on Sustainable Procurement (ISO 20400).

The Poste Italiane Group bases its purchasing processes on relationships geared towards full compliance with legality and transparency, monitoring compliance with current regulations and company directives to guarantee quality, worker protection and environmental standards, and in 2023 Poste updated the relevant internal regulatory tools in the area of Purchasing in line with regulatory developments relating to Legislative Decree no. 36 of 31 March 2023 as amended (Code of Public Contracts).

With reference to the Group's Business Continuity Management, during the meeting with the Heads of the Digital, Technology & Operations ("DTO"), Risk Management and Outsourcing Governance functions of BancoPosta ("RMGO") and CERT in the Business Continuity Management area, the Board of Statutory Auditors was informed of the acceleration in the implementation of the evolution roadmap shared in November 2020 due to Poste's increasingly important role in the provision of services to citizens and the need to meet increasingly stringent service levels.

The Board was able to confirm the important evolution of the Crisis & Business Continuity Management model at Poste, which, originally based on a structure by business area, thanks to the centralisation initiative started in 2020, has become a single Organisational Model for the Group that sees centralised governance extended also to the Obligated Parties and the adoption of advanced technological solutions to support Business Continuity and the underlying aspects in terms of IT security. In order to ensure an effective Business Continuity solution, there has been an evolution of the architecture, through the adoption of new technological solutions and new operating modes as well as technological renewal, removing the obsolescence of Hardware and Software systems and consolidating the IT infrastructure. The Board has been informed that the multi-business and multi-channel approach that characterises the Poste Group entails continuous evolution both from an infrastructural and an application perspective, which obviously requires engineering and customisation/automation throughout the value chain.

With regard to the implementation of the European Union's Digital Operational Resilience Act ('DORA') Regulation, Poste is well positioned as the Company already has a wellstructured Group Business Continuity System in place and the organisation is also well implemented, so only minor adjustments are necessary. Therefore, it is believed that there will be a smooth transition from the old to the new platform that will come into operation in the year 2024.

Over the course of the various meetings held with the Board of Statutory Auditors, the Head of the Group Anti-Money Laundering function clarified the controls that support the qualitative and quantitative adequacy of the Group Anti-Money Laundering function and reported on the consolidation of the organisational structure of the anti-money laundering structures at central and territorial level. With reference to the "Activity Plan of the Group Anti-Money Laundering function" at 31 December 2023, 7 of the 9 initiatives identified in the 2022 Annual Report have been completed. In particular, the measures enabling the use of the Electronic Due Diligence Procedure were completed in line with the commitments undertaken and communicated to the Supervisory Authority following the inspections conducted in 2022 on BancoPosta and PostePay. With reference to the two re-planned initiatives, namely the updating of the Group Anti-Money Laundering Function's procedural system (Guidelines, Procedures and Operating Instructions) and the reporting tool, it should be noted that (i) the Group Anti-Money Laundering Guideline was approved by the Board of Directors on 18 October 2023 and the Group Anti-Money Laundering Procedure and Operating Instructions had already started the publication procedure at the end of March, (ii) for the reporting application, the initiative, although later than planned, is only aimed at increasing the efficiency of the control activities already carried out with the current tools in use.

The results of the consolidated assessment, carried out by the Group Anti-Money Laundering function for the year 2023, show that the level of "residual risk" to which the Group (consisting of Poste Italiane S.p.A. and all the Obligated Parties, with the addition from this year of LIS PAY) is exposed, in the opinion of the function is classifiable as "low", in line with the results achieved in the year 2022.

The Board of Statutory Auditors also noted that, as in previous years, in 2023 the drop in the volume of reports at Group Anti-Money Laundering level continued, due to (i) the lower contribution of those related to offences involving tax credits and (ii) the increase in investigation times due to the improvement of quality-improvement audits as per the specific indications received during the year from the UIF.

The Board acknowledged that in 2023, the Suspicious Transaction Reports ("SOS") sent to the Financial Information Unit ("UIF") amounted to 20,028 (a decrease of 24% compared to 2022), of which 49 SOS of terrorist financing (down 27% compared to 2022) and 59,316 initiative reports of the postal offices.

In addition, training of the target population continued; there were 107.4 thousand requests for judicial assessments (+11% compared to 2022). Of the eight anti-money laundering charges notified by the Ministry of Economy and Finance ('MEF') in 2023, only one relates to a failure to report SOS, while the others relate to charges for violations concerning failure to affix the non-transferability clause on cheques.

The Board was also informed that, with reference to the sanctioning procedure initiated against Poste Italiane S.p.A. for shortcomings in its organisation and controls in the area of anti-money laundering, with particular reference to customer due diligence obligations, which emerged during the course of inspections at the intermediary BancoPosta in 2022 focusing on the tax credits business, on 21.09.2023 the Directorate of the Bank of Italy served Poste Italiane S.p.A. with a notice informing it that no further action would be taken on the sanctioning process.

Finally, the Board discussed in detail with the Head of the Group Anti-Money Laundering function the improvement measures envisaged in the 2024 Plan and the relevant time-lines for their implementation.

On the subject of risk management, the Board of Statutory Auditors verified that the Company has continued its commitment to strengthening the Internal Control and Risk Management System (SCIGR) as an enabling factor for the consolidation of processes and procedures, which are based on the principles of integrity, transparency, legality, sustainability and value creation that inspire the Group's work and that guide, day by day, the behaviour of its staff in the pursuit of sustainable success, as well as in the creation of shared value in the long term. Moreover, with the aim of ensuring alignment with the criteria set out in the Corporate Governance Code and with national and international regulatory standards, as well as with the objectives of integrity, transparency and full traceability of the Group's activities, Poste Italiane has continued its commitment to the development and continuous improvement of its governance and risk management model.

Based on the Group Risk Management Guidelines and in accordance with the SCIGR Guidelines approved by the Board of Directors, integrated risk monitoring is performed on an ongoing basis by the Group's Sustainable Development, Risk and Compliance function, through the analysis of the trend of the most representative indicators of the Group's main risks, i.e., the "Top Risks" and the specific actions planned to address them. Risks,

indicators and management actions are identified through the Risk Assessment process, carried out on the basis of the ERM (Enterprise Risk Management) framework, and shared with the risk owners and risk specialists responsible for each risk area (financial and insurance risks, operational risks, IT security risks, etc.) the Risk Assessment has the objective of identifying and assessing risks from an integrated perspective that could undermine the full achievement of the strategic objectives defined in Poste Italiane's Strategic Plan, structured on the basis of the four segments of which the Group is composed (Mail, Parcels and Distribution, Financial Services, Insurance Services, Payments and Mobile). The Risk Assessment revealed (i) 35 Tier 1 and Tier 2 top risks (of which 7 in Mail, Parcels and Distribution, 4 in Finance, 7 in Insurance, 3 in Payments and Mobile and 14 across the board); (ii) 319 indicators associated with Tier 1 and Tier 2 risks and (iii) 57 management actions associated with Tier 1 and Tier 2 risks.

Within the Top Risks, for those considered most relevant to the Group, a predefined level of risk appetite or Risk Appetite Framework (RAF), consistent with the strategic objectives of the Plan, is approved by the Board of Directors. It should be noted that the actions taken during 2023 and the risk safeguards implemented through the definition of risk prevention and continuous monitoring measures were, on the whole, successful in containing the residual risk within acceptable levels.

With reference to the RAF 2024, which was approved by the Board of Directors in March 2024, acceptability and tolerance levels were defined for the Group's main risks resulting from the Risk Assessment process, the performance of which will be monitored through the analysis of the trend in specific indicators and corresponding management actions. The risks that constitute the main threats to the achievement of the Group's objectives, also taking into account reputational and ESG impacts, and for which the risk appetite for the financial year 2024 has been defined, include those related to the deterioration of the quality delivered, failure to meet customer needs and IT security, as well as risks related to the evolution of the macroeconomic scenario.

The RAF 2024, at Group level, following the strategic risk assessment process, was supplemented with a set of indicators, with respective thresholds, associated with the risk of an unfavourable evolution of the macroeconomic scenario, concerning Dividends, Liquidity and Financial Structure, Economic Performance, which also summarise the performance of the most relevant financial and insurance risks affecting BancoPosta, Poste Vita and PostePay. The qualitative and quantitative indicators identified with regard to the aforementioned risks have been approved by the BoD and will be monitored on a quarterly basis, together with the treatment actions deemed appropriate to contain the exposure within the established level.

Within the framework of the Strategic Risk Assessment activities, the identified risks were categorised on the basis of the common metrics defined by the WEF, in relation to the achievement of the SDGs, with reference to the time horizon in which the most significant effects of these risks are expected to materialise, as well as based on the potential pervasiveness of the impact of these effects with respect to the individual Business Units. In addition, Sustainability Pillars and potentially impacted capital resources were associated with each emerging risk.

For the purpose of strengthening the governance controls and the continuous evolution of the Group's SCIGR, in 2023 the Integrated Compliance Model was strengthened at Group level, implemented with the specific purpose of guarding against the compliance risks to which the Group is exposed, as well as strengthening/creating operational synergies between the various specialised control units and guaranteeing unified governance in the management of compliance risks, also thanks to a clear definition of the roles and responsibilities of the players involved in the process activities.

The activities of the Group's Sustainable Development, Risk and Compliance function are supported by the Group's integrated GRC platform - RSA Archer ("GRC") IT application used by the Group to support its Risk Management and Integrated Compliance processes; during 2023, the GRC platform's functionalities were strengthened and extended; the adoption of this platform has fostered the dissemination of the Risk Management and Compliance culture at every level of the company, ensuring a coordinated and systematic management of the main issues relevant to the Company and is now considered the largest in Italy and among the best solutions implemented in Europe and globally, with particular regard to the number and relevance of the risk areas handled and the degree of integration between them.

With reference to Group risk management, the Board reiterates the recommendation to the strategic supervisory board to periodically monitor above all financial risks, especially interest rate risk, also on a multi-year perspective, periodically updating the assessment of said risks and constantly verifying the investment and hedging policies through a periodic investigation by the competent Control and Risk Committee also in conjunction with the activities of the managerial committees. In this regard, the Board, in view of the composition of the Group's securities portfolio, which shows a concentration on government securities, as well as the effects on equity as a result of the change in the fair value reserve on securities held and the related effects on capital gains and unrealised capital gains, as in previous years, recommends that the Board of Directors and the Group Sustainable Development, Risk and Compliance function and RMGO function of BancoPosta should keep this area of significant risk under constant review as part of their periodic monitoring of the main drivers of the business plan and related sensitivity, assessing the effects of adverse scenarios and verifying the related safeguards and appreciating the level of residual risk, with specific focus also on a medium- to long-term basis.

Poste Italiane has defined the new 'Strategic Plan 2024-2028', approved by the Board of Directors on 19 March 2024 and presented to the market on 20 March 2024, whose main objective is to configure Poste Italiane as a platform company that evolves towards a diversified, integrated and sustainable business model, offering its customers an increasingly wider range of products/services. The Plan makes provision for the continuation of the transformation of the logistics segment, as well as developments of the offer in the insurance area, to support the net inflows of the Life segment and confirm its ambition to reduce the country's current under-insurance condition compared to other countries, also by placing policies on third-party networks, through the integration of Net Insurance, acquired in 2023. In addition, benefiting from the growth of e-commerce and cashless payments, PostePay's business is expected to evolve towards digital and innovative payment solutions and, at the same time, the Subsidiary will represent the integration layer on which to pursue the development of the telephony and energy offerings, to meet customers' everyday needs within the PostePay ecosystem. The Group will continue to strengthen customer relations within the Post Office network, third-party networks and on digital properties by making omni-channel experiences easier.

In line with the previous Business Plan, the new Strategic Plan also hinges on ESG principles and responds to the challenges of sustainability by setting targets up to 2030, in terms of reducing the Group's emissions and supply chain; these must be augmented by socio-economic elements such as developing people's skills and enhancing staff to foster change, promoting the values of diversity, equal opportunities and inclusion, and identifying the expectations of all generations including young workers. It should be noted that in 2023, the Company maintained flexible forms of work (smart working), as an alternative to the traditional way of working in a face-to-face setting, while still ensuring flexible work for vulnerable staff.

The Poste Italiane Group's Sustainable Development strategy is embodied in the ESG Plan, which has been renewed, taking into account the results of the materiality analysis, in a

synergistic manner with the new 'Strategic Plan 2024-2028' with specific short-, mediumand long-term objectives, in order to make the Group's path towards sustainable progress transparent and verifiable. The updating of the Sustainability Strategy was influenced by three main drivers: the definition of the new Business Plan; requests from rating agencies and regulatory developments. The ESG Plan confirms its subdivision into eight pillars: Integrity and Transparency, People development, Diversity and Inclusion, Creating value for the country, Green transition, Customer experience, Innovation and Sustainable finance, whose objectives are updated annually according to a process of continuous alignment with strategic guidelines, results achieved and best practices, to increasingly integrate Sustainability along the entire value chain.

During the year 2023, the Board of Statutory Auditors periodically met with the Supervisory Board ('SB') in order to acquire the appropriate information on the implementation of the Organisational Model 231 (also 'Model 231'), as well as relevant and general information on the adoption of the Organisational Model by the Subsidiaries. Furthermore, the Board was informed of the outcome of the supervisory activity carried out by the Supervisory Board in the year 2023 and, also taking into account the information flows transmitted by the Whistleblowing Committee, noted that no significant critical issues or violations of the Organisational Model 231 or the Company's Code of Ethics came to light.

In the periodic exchange of information with the Supervisory Board, the Board was informed that during the second half of 2023, following the new Risk Assessment and Gap Analysis 231 cycle conducted with the involvement of all corporate functions - with the aim of analysing the information contained in the Matrix for the Identification of Activities at Risk (MIAR) and identifying the need to update the OM231 - a further update of the Model 231 was carried out, which will be submitted to the Board of Directors for approval in April 2024. The main areas of updating the Model 231 relate to the transposition of new 231 regulations (extension of the catalogue of 231 offences), the new Code of Ethics (November 2023), changes to the Whistleblowing regulation, the Internal Control System (evolution of the Control Principles and Rules of Conduct - Special Parts of the Model), changes in view of the usability of the document (new Process Sheets).

In view of the increased size of the Poste Group as a result of the company acquisitions in the last two years, the Supervisory Board has for some time now raised the number of meetings with the Supervisory Boards of the Subsidiary Companies - in order to ensure a constant exchange of information with all the Boards, within the framework of the full separation of the respective areas of responsibility concerning the controls on the operation of and compliance with the respective Models 231. As part of the initiatives promoted aimed at strengthening Group Compliance 231, a new Group Framework Agreement was entered into with an external supplier - with the involvement of most of the Subsidiaries for specialist support for the evolution of Risk Assessment and Gap Analysis 231 and Model 231.

In this context, the dedicated IT system (GRC-RSA Archer) - mentioned above - was progressively updated on the basis of the evidence emerging from the monitoring of the 231 Risk Assessment and Gap Analysis activity.

The Board was informed about the initiatives undertaken by the Company on the subject of certifications, especially in the area of 'Anti-corruption' with respect to which in 2023 the Company obtained 'Quality and Corruption Prevention Management System' certification on the entire perimeter of company processes and sites. In addition, the certification for Gender Equality was also obtained in 2023.

The Board of Statutory Auditors monitored, also through specific meetings with the Whistleblowing Committee, the progress of the project to comply with the new regulations introduced by Legislative Decree no. 24/2023, implementing the EU Directive 2019/1937, as well as the "New Poste Italiane Group Whistleblowing Portal" Project. As part of these activities, the Board of Statutory Auditors took note of the analysis carried out to verify the possibility of modifying existing processes in order to make the Parent Company's IT platform ("Portal") usable by the smaller Subsidiaries to ensure that all Subsidiaries are compliant with the regulations under review.

The Board of Statutory Auditors verified that Poste Italiane had already complied with the new legislation in compliance with the legal deadline of 15 July 2023 for companies with more than 249 employees, monitoring the compliance activities of Group Companies as well, and was informed by the Whistleblowing Committee that Subsidiaries with between 50 and 249 employees had also aligned with the new legislation in compliance with the legal deadline (17 December 2023). In fact, within the terms of the law, the Institutional Whistleblowing Portal of Poste Italiane was implemented - for the benefit of Group Companies - equipped with encryption keys, with the consequent deactivation of the impersonal e-mail inboxes previously used for Group Companies, and the Privacy Policy for each Subsidiary was updated.

Lastly, the Board was informed that during the year, the Supervisory Board monitored the Project for the Review of Poste Italiane's Code of Ethics (previous version: April 2018), which was approved at the Board of Directors' meeting of 6 November 2023 and subsequently sent to the Subsidiaries for subsequent implementation.

In summary, in light of the overall activities carried out and considering:

• the organisational structure of the Group in general and of BancoPosta RFC specifically;
• the existing set of procedures and their continuous updating;
• the results of the verification and evaluation activities received by the Board of Statutory Auditors from the BancoPosta's Internal Control as well as the Internal Auditing functions;
• the results of the inspection activities carried out by the various Supervisory Authorities;
• the assessment results recorded during the year by the other corporate control functions provided for by the internal control and risk management system;
• the information acquired during participation by the Board of Statutory Auditors in the meetings of the Board of Directors and Board Committees;
• the exchange of information with the Independent Auditor, the Data Protection Officer ("DPO") and the SB pursuant to 231/2001;
• the main developments of the SCIGR and, in particular, the initiatives to strengthen it;
• the compensatory controls and improvement measures implemented and/or in progress in relation to the activities carried out and the findings relating to the SCIGR highlighted by Poste Italiane's Internal Control function;
• the compensatory controls and improvement measures implemented and/or under way in relation to the findings relating to the SCIGR highlighted by the BancoPosta Internal Audit functions and the Audit functions of Group companies;
• further events with potential impacts on the SCIGR, including corporate project initiatives in specific operational areas, implemented or in the process of progressive implementation;
• the evidence acquired from management of the Whistleblowing reporting system the Board of Statutory Auditors is not aware of critical situations or events that might suggest shortcomings in the Internal Control System of Poste Italiane overall and of BancoPosta RFC in particular.

14. Observations on the adequacy of the Company's administrative/accounting system and its reliability in representing operating activities

The Board of Statutory Auditors examined and oversaw, within the scope of our responsibilities, the adequacy of the Company's administrative/accounting system in reliably representing operating activities, the effectiveness of the Internal Control and Risk Management System and the financial reporting process, by: (i) collecting information from the managers of the various functions, from the Independent Auditor and the Manager responsible for financial reporting; (ii) examining the annual Report by the Manager Responsible for the Internal Control System for preparing the accounting and corporate documents; (iii) participating in the meetings of the Control and Risk Committee, the Sustainability Committee and the Related and Connected Parties Committee; (iv) examining the results of the activities carried out by the Poste Internal Control Function and the BancoPosta Internal Audit Function; (v) examining the proposed Audit Plan for 2024, prepared by both Poste's Internal Control function and BancoPosta's Internal Audit function; (vi) examining reports prepared by Poste's Internal Control function and BancoPosta's Internal Audit function; (vii) information on news and notices of inspections and proceedings by Bodies and Supervisory Authorities, including independent, of the Italian government or European Community, for details of which, reference is made to the information given in the paragraph on "Main relations with the Authorities" of the notes to the financial statements.

The Board also notes the Attestations, dated 19 March 2024, of the separate and the consolidated financial statements for the year ended 31 December 2023 pursuant to art. 154-bis, paragraph 5 of the CLF and art. 81-ter of Consob Regulation 11971 of 14 May 1999, in which the Chief Executive Officer and the Manager responsible for financial reporting declare, among other things, that the separate and consolidated financial statements:

• have been prepared in compliance with the International Financial Reporting Standards endorsed by the European Union through EC Regulation 1606/2002, issued by the European Parliament and by the Council on 19 July 2002;
• are consistent with the underlying accounting books and records;
• give a true and fair view of the financial position and results of operations of the issuer and the companies included in the scope of consolidation.

The Chief Executive Officer and the Manager responsible for financial reporting also declare that the Report on Operations includes a reliable analysis of the operating and financial performance and situation of the issuer and the companies included in the

scope of consolidation, as well as a description of the main risks and uncertainties to which they are exposed.

15. Observations on the adequacy of the guidelines communicated by the Company to its subsidiaries pursuant to art. 114, paragraph 2 of Legislative Decree 58/1998.

Also in 2023, the Board found, through a specific meeting with the Corporate Affairs function, the adequacy of the guidelines communicated by the Company to its subsidiaries pursuant to art. 114, paragraph 2 of the Consolidated Law on Finance, following revision of the "Guideline for Management and Publication of Confidential Information, and Maintenance and Updating of the Related Registers", approved by the Board of Directors on 22 June 2017, revised on 2 October 2018 and last updated on 30 July 2020.

The Board of Statutory Auditors met periodically with the Boards of Statutory Auditors of the Group's main Subsidiaries in order to verify the correct implementation of instructions issued by the Parent Company. In particular, the Board found that the implementation within the Group of the MAR Guidelines on Insider Management and Internal Dealing (including the insider procedure) is continuous and timely. For the Net Group, which was acquired in 2023, the transposition of the aforementioned Guidelines has already been planned, while for the companies newly established in early 2024 (MLK Fresh s.r.l. and Poste Logistics S.p.A.) the transposition is planned in the coming months.

In addition, as provided for in Article 151(1) and (2) of the Consolidated Law on Finance, the Board of Statutory Auditors acquired the reports of the control bodies of the main subsidiaries and/or the information transmitted by them following specific requests.

16. Oversight of the statutory audit of the annual and consolidated accounts and observations on any key aspects that came to light during meetings with the Auditor pursuant to art. 150, paragraph 3 of Legislative Decree 58/1998.

The Board of Statutory Auditors had effective and timely communication with the Independent Auditor, for the purpose of the mutual exchange of information useful for the performance of their respective duties, pursuant to art. 150, paragraph 3, of the CLF. The Independent Auditor did not find any acts or facts considered reprehensible or irregularities that required the formulation of specific reports pursuant to art. 155, paragraph 2, of the CLF.

On 4 April 2024, the Independent Auditor issued the Additional Report pursuant to article 11 of Regulation (EU) no. 537/2014, of which the annual confirmation of independence is an integral part. The Auditor has not deemed it necessary to issue any letter of suggestions to the Company's management on the understanding that certain points for improvement are contained in the Report pursuant to article 11 of EU Regulation no. 537/2014. With regard to these points, the Board of Statutory Auditors recommends that the Directors evaluate them with a view to their subsequent implementation.

The 2023 Audit Plan was illustrated by the Independent Auditor to the Board at a specific meeting.

The Independent Auditor has not informed us of any events or circumstances identified during the performance of the audit that might raise significant doubts about the ability of the Company or the Group to continue to operate as a going concern, nor regarding material shortcomings in its internal control system over financial reporting and/or in its accounting system, or any significant doubts over instances of non-compliance, whether effective or presumed, with laws, regulations or statutory requirements identified during the performance of the audit.

The Reports on the Audit of the Separate and Consolidated Financial Statements include an illustration of the key aspects that, in the Auditor's professional opinion, were most significant in the audit of the Separate (Estimate of the recoverable value of the "Mail, Parcels and Distribution" business segment) and Consolidated Financial Statements for the year (Goodwill impairment test on the "Mail, Parcels and Distribution" CGU and on the "Payments and Mobile" CGU, Valuation of Liabilities for Insurance Contracts and Firsttime Application of IFRS 17 - Insurance Contracts).

The Auditor does not express a separate opinion on these key issues, for which the Auditor's Reports explain in detail the relevant audit procedures adopted, since they have been addressed in the audit and in the preparation of an opinion on the financial statements as a whole. The above key aspects were the subject of detailed analysis and updating during the periodic meetings that the Board of Statutory Auditors held with the Independent Auditor. The Board of Statutory Auditors also discussed these key issues in depth, as well as the main themes of the 2023 financial statements, with the Company's management in specific meetings.

17. Oversight of application of the Corporate Governance Code for listed companies.

Pursuant to art. 149, paragraph 1, letter c-bis of the CLF, the Board oversaw the procedures involved in effective implementation of the rules provided for in the Corporate Governance Code adopted by the Board of Directors.

• ✓ With regard to the activities provided for in the Corporate Governance Code, the Board of Statutory Auditors not only held 37 of its own meetings during the year, but also ensured its participation in all the meetings of the Board of Directors and internal Board Committees, in addition to general meetings of shareholders, for a total of 79 meetings.
• ✓ Given the complexity of the corporate transactions carried out, the number of related parties and their heterogeneity, the Board of Statutory Auditors has appreciated the strengthening of the process, starting from September 2022, through the integration of the quarterly report brought to the attention of the members of the Related Parties Committee and of the Board itself, with additional documentation signed by the Manager of the Proposing function in which the reference parameters for the ordinariness of the transaction are certified (in relation to the types set forth in the Consob Regulation and the provisions of the Bank of Italy) and the existence of conditions equivalent to market or standard conditions.
• ✓ The Board of Statutory Auditors, for matters within its competence, verified the contents of the "Report on Corporate Governance and the Ownership Structure", prepared by the Directors in accordance with the instructions contained in the Regulations on Organised Markets managed by Borsa Italiana S.p.A. and in the Consolidated Law on Finance. Moreover, the Board of Statutory Auditors, during a meeting of the Nominations and Corporate Governance Committee and a Board meeting during which the communication of 14 December 2023 of the Chair of the Corporate Governance Committee of Borsa Italiana was discussed - addressed to the Chairs of the Boards of Directors (and, for information to the Chief Executive Officers and to the Chairs of the Boards of Statutory Auditors) of Italian listed companies - and which saw an in-depth analysis of the Company's structure with respect to the four recommendations indicated in the aforementioned communication, noted that the Company's positioning in terms of governance structure is fully aligned with best practice.
• ✓ The Board, for matters within its competence, has taken note of the contents of the Remuneration Report prepared by the Directors. In addition, the Board, through its participation in the Remuneration Committee meetings, also examined the MBO incentive scheme, as well as the Performance Share LTIP.
• ✓ In March 2024, the Board of Statutory Auditors verified the correct application of the assessment criteria and procedures adopted by the BoD to assess the independence of Directors, noting that the assessment was carried out during the meeting of the Board of Directors held on 25 January 2024, following the preliminary examination and

favourable opinion expressed by the Nominations and Corporate Governance Committee at its meeting of 23 January 2024. The assessment was conducted in accordance with the provisions of the Guideline on the "Application criteria and procedure for assessing the independence of Poste Italiane S.p.A.'s Directors" (pursuant to art. 2, Recommendation no. 7, of the Corporate Governance Code), on the basis of (i) self-declarations issued by each Director, (ii) historical chamber of commerce records ("personal files") of each Director, containing evidence of current offices and those no longer held and (iii) information obtained directly by the Company, with reference to any relationships and/or relations of an economic/financial nature existing between the Group companies, the Directors and any of their related parties, in line with the provisions on the independence requirements of art. 2, Recommendation no. 7 of the Corporate Governance Code.

In addition, the Board of Statutory Auditors noted that following the renewal of the Board of Directors appointed by the Shareholders' Meeting of 8 May 2023, during the meeting in which the latter took up office, held on the same date, the Board of Directors verified that the non-executive directors met the independence requirements and that subsequently, at the meeting held on 31 May 2023, the Board of Directors verified the integrity requirements (pursuant to law and the Articles of Association) and the suitability requirements and criteria (pursuant to Ministerial Decree No. 169/2020) of the members of the Board of Directors and the heads of the main corporate functions (as defined in the same Ministerial Decree No. 169/2020).

• ✓ In February and March 2024, the Board carried out the assessment of the independence of its members, verifying the existence of the related requirements, contemplated in the Consolidated Law on Finance and in the Corporate Governance Code, also taking into account the results of the investigations carried out by the Company with regard to any outstanding economic or financial transactions and/or relationships with Group Companies.
• ✓ The Board of Statutory Auditors also took note of the activities carried out by the Company in order to implement the recommendations reported in the 11th Report on the Application of the Corporate Governance Code of the Corporate Governance Committee established in 2011 by the Business Associations (ABI, ANIA, Assonime, Confindustria), Borsa Italiana S.p.A. and the Association of Professional Investors (Assogestioni).

Pursuant to the Corporate Governance Code, the Board of Statutory Auditors was also consulted by the Control and Risk Committee in 2023 regarding the following:

• − definition of the Audit Plan;
• − evaluation of the results set out by the Statutory Auditor in the Report pursuant to Article 11 of EU Regulation No. 537/2014 concerning the separate and consolidated financial statements as at 31 December 2023;
• − correct use of accounting standards and their homogeneity within the Poste Italiane Group for the purpose of preparing the consolidated financial statements;
• − correctness of the decision-making process adopted by the Directors with respect to the distribution of an interim dividend for the year 2023 pursuant to article 2433-bis of the Italian Civil Code, paid in November 2023, verifying compliance with the conditions provided for by the regulations for the payment of the interim dividend, in line with Poste Italiane's economic and financial performance in the first half of 2023, as well as the outlook for the year 2023.

18. Self-assessment process for the Supervisory Board

Lastly, in compliance with the Bank of Italy's Supervisory Standards, Rule Q.1.7. "Self-Assessment of the Board of Statutory Auditors" (hereinafter "Rule") contained in the "Rules of conduct of the Board of Statutory Auditors of listed companies" published by the CNDCEC (National Institute of Chartered Accountants and Accounting Experts) in April 2018 and updated on 21 December 2023, art. 25.1 of the Company's Articles of Association, as well as in line with the "Regulation on the self-assessment process of the Poste Italiane S.p.A.'s Board of Statutory Auditors", approved by the same Board on 30 January 2020, in January, February and March 2024, the Board of Statutory Auditors carried out a self-assessment of its adequacy in terms of powers, functioning and composition, with reference to the 2023 financial year. On this occasion, unlike the previous year, the self-assessment was carried out with the support of an external consultant because Bank of Italy regulations recommend that the self-assessment be carried out with the support of an external consultant for at least one year within a three-year term.

The results of the replies to the questionnaires confirm, also for the second year of its mandate, a fully positive Self-Assessment of the Board of Statutory Auditors, in terms of qualitative-quantitative profiles and effective functioning, thanks to clear operational balances and coherence in the methods of dialogue/interaction between members that, in some cases, offer recommendations for further improvements.

The Self-Assessment process provides a very positive overall picture of the Board in terms of adequacy of composition, independence, functioning, exercise of powers, internal climate, role of the Chair of the Board, minutes, support of the competent secretariat. The support of the Board Secretariat also contributed positively to the effective performance of the tasks. In addition, a fully positive assessment has emerged regarding the detail of supervisory activities, expressly referred to for the purposes of the Self-Assessment pursuant to Bank of Italy Circular no. 285/2013.

Based on the joint assessment of the members of the Board of Statutory Auditors, a positive picture emerges of the relations between the Board of Statutory Auditors and the main Poste Control Functions (Internal Control) and, in particular, of BancoPosta (Compliance, Risk Management, Internal Audit), as with those with the Head of Anti-Money Laundering, the Manager responsible for financial reporting, the Independent Auditors and the Supervisory Board.

The results of the self-assessment conducted will be forwarded to the Board of Directors in accordance with the indications of the Consiglio Nazionale Dottori Commercialisti ed Esperti Contabili (National Institute of Chartered Accountants and Accounting Experts) in its document on the self-assessment of the Board of Statutory Auditors.

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Supervisory Body's activities in the financial, insurance and payment areas of the Poste Italiane Group.

The Board of Statutory Auditors met with the new Control Body of BancoPosta Fondi SGR during the year 2023 and on that occasion, among the various topics discussed, was informed about the Multi-Asset Funds (FMA) Project ("Project"), whose objective is the development in the SGR (asset management company) of fund hosting activities for Multi-Asset Funds. The Board of Statutory Auditors also received information on the subsidiary's organisational structure, which was found to be well structured and adequate, and noted the management's constant attention to the activities carried out, acknowledging the adequacy and functioning of the administrative-accounting system, as well as the latter's reliability in correctly representing management events. With regard to the System of Internal Controls, as of 2019, the SGR's Internal Audit function has been fully outsourced to BancoPosta's Internal Audit Function, and the SGR's 2023 Audit Plan, approved by its Board of Directors in February 2023, is in line with the planned timetable.

In addition, with reference to the SGR's economic and financial situation, the Board was informed that the Subsidiary recorded positive and improving results compared to the previous year, and therefore in this area there are no elements of attention to be reported. Also in the ESG domain, with the regulatory changes that have taken place in the last two years, in particular the entry into force in 2021 of the EU2019/2088 "SFDR" Regulation (and related RTS) and the Taxonomy Regulation, the SGR is carrying out significant improvement activities in terms of sustainability governance, corporate and product strategy, procedural safeguards, monitoring and management of sustainability-related risks and impacts, engagement and voting activities, and internal and external communication on these issues.

Lastly, with reference to the new Business Crisis and Insolvency Code, the Board was informed that the Subsidiary continued to comply with the new regulations and, during the year, it adopted specific debt indicators, in order to detect any signs of debt exposure of the company potentially symptomatic of a state of crisis, in line with the provisions of Legislative Decree no. 83/2022.

Consistently with the gradual implementation process shared with the Parent Company, in order to further strengthen the monitoring and supervision of business continuity issues, in conjunction with the approval of the Half-Year Report as of 30 June 2023, with the resolution of the Board of Directors of 20 July 2023, the subset of indicators identified was integrated with the additional indicator of a forecast nature, in line with the requirements of regulations and leading practices in the Debt Service Coverage Ratio (DSCR), i.e. the ratio between operating cash flow and the cash flow to service debt.

The Board of Statutory Auditors has noted that both the specific debt exposure indicators and the specific indicator of sustainability of financial debt show that the Company does not have any facts/circumstances to report or specific areas of risk.

As part of its ongoing discussions with the Head of BancoPosta's Internal Audit function, to which BancoPosta Fondi SGR's audit activities are outsourced, the Board of Statutory Auditors noted that the activities carried out at the SGR confirmed an assessment of overall adequacy, also in light of the various strengthening initiatives adopted during the year in the area of business, organisation and control. In relation to the ESG governance process, the following needs were identified: (i) to update the current process model in order to incorporate organisational developments in ESG matters, (ii) to make changes to the regulations of the Management and Governance Committees, and (iii) to integrate the delegated manager agreement and the internal document system.

With reference to PostePay EMI Ring-fenced Capital, the Board of Statutory Auditors monitored the progress of audit activities, including through the meeting with the company's control body held in October 2023, during which the Board of Statutory Auditors received extensive information on the main elements relating to the functioning of the Internal Control System and governance, administration and organisation, the functioning of EMI RFC, as well as significant aspects relating to management and financial performance.

Based on the information received from the Control Body of PostePay, also during the exchange of information in October 2023, the Board also noted that a positive assessment emerged on the Internal Control System, the administrative-accounting structure and the organisational structure, highlighting how they are adequate for the size and nature of the business carried out by the Subsidiary. In addition, the Board of Statutory Auditors also received information on the new business of marketing electricity and natural gas supply services, noting that PostePay, in addition to the "Poste Energia 160" offer launched in June 2022 and reserved to employees and their relatives, in January 2023 launched the mass market offer with which it entered the external market, and that PostePay's control body also carried out its oversight activities in this area. With reference to the Environmental, Social, Governance ("ESG") aspects, the Board was informed that PostePay only offers and injects electricity produced in Italy from renewable sources, certified by GSE Guarantees of Origin, and that PostePay covers the CO2 emissions of gas through the purchase and sale of Green Certificates. In addition, since March 2022 PostePay has adhered to the Group's policy, also incorporating the various ESG Guidelines, and has drawn up an ESG Training Plan and initiated a number of actions to fully comply with the Group Guidelines, activities that will be implemented by March 2024.

With reference to the Italian legislation on Whistleblowing - Legislative Decree no. 24/2023, and to the regulations introduced by the Business Crisis and Insolvency Code ("Crisis Code"), the Subsidiary has complied with the new regulations and the Board has noted that the management of PostePay has already started the appropriate activities.

The Board, in the context of its discussions with the Head of Poste's Internal Control function, noted that the audits carried out by the PostePay Internal Audit function with reference to the process of adequacy of the organisational structures of the Subsidiary revealed some areas for improvement.

The Board of Statutory Auditors constantly monitored the activities of the LIS Group (LIS Holding S.p.A. and its Subsidiary LIS Pay S.p.A.) in depth. Group in which 100% was acquired by Poste Italiane, through its subsidiary PostePay - EMI Ring-fenced Capital on 14 September 2022, the LIS Group offers a wide range of services for the collection and payment of bills, MAV (payment by advice), PagoPA, and telephone top-ups, through a technological platform made available to 54,000 non-specialised points of sale located throughout Italy, of which 33,000 represented by tobacconists, and therefore this transaction consolidates PostePay's growth in the payments market. In this regard, from the information received from PostePay's control body, the Board was informed that, in view of the fact that € 28 million in profits were distributed in the year 2023, the investment is yielding the hoped-for results, even exceeding expectations.

With reference to the Poste Vita Insurance Group, the Board of Statutory Auditors held two meetings and, in particular, in positively assessing the exchange of information with the Poste Vita Control Body, it was informed that during the first half of 2023, "IVASS Regulation no. 131" was issued, which introduces amendments and additions to several IVASS Regulations to facilitate compliance with the directly applicable European provisions already adopted on sustainable finance. In this regard, PosteVita's Board of Directors approved an ESG Business Plan that also includes certain specific actions aimed at ensuring full compliance with sustainable finance provisions.

❖ Supervision of Activities and Inspections by Supervisory Authorities

The Board of Statutory Auditors constantly exchanged information with the Control Bodies of the Group Companies and, specifically, in the year 2023 it held two meetings with the Control Body of the SGR, the first in March 2023 and the second in November 2023, meeting there with the new Control Body appointed on 26 June 2023. During these meetings, the Board of Statutory Auditors delved into the issue of integrating Environmental, Social and Governance ("ESG") risks within SGRs and received more information on the survey launched by the Bank of Italy, following the issuance of the document on "Bank of Italy Supervisory Expectations on Climate and Environmental Risks". In this regard, the Control Body of BancoPosta Fondi SGR pointed out that in December 2022 the Authority had published an Information Note containing the findings to emerge from the answers to the Self-Assessment Questionnaires, sent by the Intermediaries, which showed that, while there was a general focus on ESG issues from the Intermediaries' top management, in most cases there were widespread shortcomings, with delays in the implementation, and often also in the planning of structural initiatives regarding the various company profiles concerned. For this reason, the Authority asked the Boards of Directors of all less significant banks to define and approve specific Action Plans for the effective integration of climate risks into the ordinary governance and risk management framework over the three-year period. In light of this, the SGR, in its capacity as a non-banking financial intermediary - although it has already embarked on a path of ESG integration - in aligning itself with the requirements of the Supervisory Authority, submitted to the Bank of Italy a document containing the following aspects: (i) the company's as-is situation with respect to expectations, (ii) the Action Plan for the inclusion of climate and environmental risks with related time-lines and priorities, and (iii) the assessment of the SGR's Control Body.

The SGR's Action Plan has a three-year horizon (years 2023 - 2025) and individual actions are indicated with three priority levels (1-3) and an indicative time-frame, subject to possible amendments based on changes in the context and regulations.

Also at the aforementioned meeting of March 2023, the Board of Statutory Auditors noted that the Action Plan was positively assessed by the SGR's Control Body, insofar as the same Plan responds to the intervention needs identified by the gap analysis carried out by the Bank of Italy, and precisely defines the adjustments that will be made over the next three years.

On the occasion of the aforementioned meeting, the Board received an update on the results of the inspections that the Bank of Italy had carried out during the year 2022, as well as a report on the inspection started in the year 2023; in particular, the Board noted that (i) at the outcome of the general inspection, conducted from September to December 2022 by the Bank of Italy pursuant to Article 114-quinquies. 2, paragraph 4, of the Consolidated Law on Banking "on the sustainability of the business model, the adequacy of governance and the functionality of the system of internal controls, with particular reference to transparency and anti-money laundering controls and the monitoring of outsourced activities", the Supervisory Authority delivered its Inspection Report on 27 March 2023 with a "partially favourable" opinion, which stems, in a context of high profitability and adequate capital resources, from the need to strengthen the monitoring of activities outsourced to the Parent Company Poste Italiane, the control of reputational risks and the action of the internal control functions, especially with regard to transparency and antimoney laundering. On the basis of the Inspection Report, Poste Pay drew up the document "Considerations regarding the findings reached and the Plan for improvement actions",

which was approved by the Subsidiary's Board of Directors on 27 April 2023 and subsequently forwarded to the Bank of Italy, in which, for each finding and observation, the Company's relevant considerations were formulated, giving evidence of the planned actions already completed and those under way, with the relevant implementation schedule. Also as part of the above-mentioned 'general' inspection, the Bank of Italy also carried out specific in-depth examinations of the money laundering risk management system and the processes aimed at fulfilling the anti-money laundering obligations in place for PostePay, mainly outsourced to Poste Italiane and implemented as part of the Group's anti-money laundering model. Following the checks, again on 27 March 2023, the Authority notified the commencement of sanctioning proceedings for the formal objection to deficiencies in the monitoring of anomalous top-up transactions of prepaid cards (administrative sanctioning proceedings of 4 April 2023 for breach of the provisions of Legislative Decree no. 231/07 and subsequent amendments). At its meeting of 4 May 2023, the Board of Directors of PostePay, in the presence of the subsidiary's Board of Statutory Auditors, unanimously approved the document entitled "Inspections conducted by the Bank of Italy from 29 September to 16 December 2022 - Counter-claims formulated in relation to alleged violations ascertained during the inspection"; (ii) inspections initiated by the Bank of Italy in November 2022 and concluded on 15 December 2022 concerning the process for handling disallowances of unauthorised payment transactions, as well as, from a factfinding perspective, the company's approach to payment security; as a result, during the Board of Directors' meeting of 14 July 2023 the Bank of Italy delivered its Inspection Report, in response to which the Subsidiary submitted to the Supervisory Authority the document "Considerations in respect of the findings reached and Plan for improvement actions", which was approved by the Board of Directors of Poste Pay at its meeting in September 2023; (iii) during the period from 21 February 2023 to 2 March 2023, the Bank of Italy initiated a further inspection, pursuant to art. 146 of Legislative Decree No. 385 of 1 September 1993, in respect of which the Authority delivered an Inspection Report at the meeting of the Board of Directors held on 25 September 2023. The inspection, which can be traced back to a "system-based" fact-finding activity concerning the processes and systems enabling the PSD2 services of "passive open banking", found that the tools set up by the Intermediary for access by Third Parties were adequate, with some aspects that could be improved, in respect of which an Intervention Plan was defined, initiated by PostePay already during the inspection, which was transmitted to the Authority at the end of October 2023. In response to the above-mentioned three inspections, PostePay prepared specific Action Plans, whose remaining actions are currently being implemented. The Board was also informed that in order to implement the improvement measures defined in connection with the aforementioned inspections, it was necessary to increase PostePay's staff, which led, during the first nine months of 2023, to the reinforcement of the Subsidiary's workforce, increasing the number of staff both in the Energy department and in the Control function area.

Lastly, during the exchange of information with Poste Vita's control body, the Board of Statutory Auditors was updated on developments in relation to the inspections initiated by IVASS between 2020 and 2021 against the Company; at the end of this inspection, the Supervisory Authority notified the Board of an inspection report in which shortcomings were found and a fine was imposed on the Company and the members of the Company's governing bodies, which was immaterial in relation to the Company's turnover. Moreover, IVASS, in the notified measure, acknowledged that PosteVita had already remedied the disputed deficiencies by the date of the conclusion of the investigation. The Board of Statutory Auditors, on the basis of the information acquired during the meeting with PosteVita's Control Body, noted that a particularly proactive approach had been adopted by the Directors on this issue and that no critical issues had emerged with regard to the progress of the improvement measures undertaken by the Company.

In addition, the Board of Statutory Auditors noted that in 2023 IVASS carried out an inspection on dormant policies (policies for which the Company has difficulty identifying the beneficiaries), which concluded with the issue of an Inspection Report with a number of findings, in relation to which PosteVita has prepared a Plan of Improvement Actions to reduce the current number of dormant policies and to strengthen liquidation controls.

*****

Oversight of BancoPosta RFC

The Board of Statutory Auditors oversaw BancoPosta RFC in accordance with:

− Presidential Decree 144/2001 "Regulations governing the services provided by BancoPosta", the relevant regulations contained in the Consolidated Law on Banking and in the Consolidated Law on Finance and the implementing regulations for banks, deemed applicable to BancoPosta by the relevant authorities, and in compliance with the BancoPosta RFC Regulation approved by the General Meeting of shareholders held on 14 April 2011 and amended by the Extraordinary General Meeting of 31 July 2015

and subsequently revised by the Board of Directors' resolution of 25 January 2018. As required by the Regulation, the Board of Statutory Auditors examined the specific issues regarding BancoPosta RFC separately, reporting the results in the minutes of its meetings;

− the Supervisory Standards issued by the Bank of Italy on 27 May 2014 and, more generally, those in Circular 285 of 17 December 2013, as amended.

As is known and verified on the basis of the information received from the Manager responsible for financial reporting, the Independent Auditor, management of BancoPosta and the Heads of BancoPosta's control functions, and the examination of the annual report of the Manager responsible for financial reporting, BancoPosta RFC's organisation and accounts have been unbundled with respect to the Company's operations. In preparing the Report for BancoPosta RFC, in compliance with the provisions of Law Decree 225/2010, converted into Law 10/2011, which introduced regulations applicable to BancoPosta RFC, requiring the accounting separation provided for in articles 2214 et seq. of the Italian Civil Code and preparation of a Separate Report, the Company uses the implementations developed within its accounting system, aimed at ensuring that transactions relating to BancoPosta RFC are recognised in a dedicated accounting system and separately from those relating to the Company's operations, for the purposes of application of the Bank of Italy's prudential supervisory authorities provided for by Law 10 of 26 February 2011.

Paragraph 2 of Bank of Italy Circular 285/2013 - part IV of the Standards for particular intermediaries of BancoPosta - Chapter 1 BancoPosta, section II - requires that, in addition to directly attributable revenues and costs, the charges incurred for the services provided by Poste Italiane in order to enable BancoPosta to operate should also be allocated to BancoPosta RFC, and that the allocation of these charges should be based on criteria that reflect the real contribution of the various functions to BancoPosta RFC results and to those of the Company as a whole.

Every six months, the Board verified the adequacy of the criteria adopted for valuing the activities carried out by Poste Italiane SpA for the management of BancoPosta RFC and, within the scope of our responsibilities as an oversight body, without responsibility for accounting controls, compliance with the applicable statutory and regulatory requirements. Based on the available data and information, the Board of Statutory Auditors believes that the level of control over management of BancoPosta RFC accounts is adequate.

In this regard, the Board of Statutory Auditors notes that, with effect from 2021, the Auditor has been engaged to annually issue a "limited opinion" which this year concerned the BancoPosta RFC Separate Report at 31 December 2023 - consisting of the balance sheet, statement of profit or loss, statement of comprehensive income, statement of changes in equity, statement of cash flows for the year ended on said date and the notes ("BancoPosta's Report"), annexed to the Company's financial statements in accordance with the provisions of section 8 of the BancoPosta RFC Regulation - in order to check the consistency of the data contained in the Report with those reported in the Company's financial statements for the year ended 31 December 2023.

BancoPosta's Report has been prepared in application of the International Financial Reporting Standards adopted by the European Union and the seventh update of Bank of Italy Circular no. 262/2005 – "Banks' Financial Statements: Layouts and Preparation", and of art. 2447-septies, paragraph 2, of the Italian Civil Code.

In view of the content and purpose of the engagement, the Auditor carried out a limited review of the BancoPosta's Report in accordance with ISAE 3000 revised Assurance Engagements Other than Audits or Reviews of Historical Financial Information ("ISAE 3000 Revised") and planned and performed procedures to obtain a limited level of assurance that the BancoPosta's Report does not contain material misstatements. On 4 April 2024, Deloitte issued its audit report on BancoPosta's financial statements, stating that "based on the work performed, nothing has come to our attention that causes us to believe that the figures contained in the financial statements are inconsistent, in all material respects, with those reported in the Company's financial statements for the year ended 31 December 2023".

With regard to the supervision of the financial reporting process of BancoPosta RFC, reference should be made to the observations and recommendations set out in paragraph 4 of this Report to the extent that they relate to said separate capital.

❖ Adequacy of Control functions and Activity Plans

The Board of Statutory Auditors received periodic information from the BancoPosta Control functions and examined the quarterly Tableau de Bord, as well as carried out an in-depth analysis of the results of the overall verification activities carried out by these functions in 2023, as shown below.

➢ The Board met periodically, and on a systematic basis, with the Risk Management and Outsourcing Governance function, now called the Risk Management Function as a result of Service Order no. 7 of 9 February 2024 ("OdS 7/2024"), which reported, from time to time, on the monitoring and development of risks relevant to BancoPosta. In keeping with the Group's new money laundering risk management model, as already mentioned above, from 2018, the Head of Risk Management has assumed the role of BancoPosta's Head of Anti-money Laundering, and within the Risk Management ("RM") function, the BancoPosta's Anti-money Laundering Function was established. Within the Risk Management function, with the aforementioned Order No. 7/2024, two new functions were established (i) Operational and ICT Risks and (ii) Outsourcing and Third Party Risks into which, in line with the perimeters of responsibility, activities and staff previously operating in the Operational Risks function and in the Outsourcing Governance and BCM function were merged. In particular, the activities and staff dedicated to business continuity and incident management were merged into the Operational Risks function, renamed "Operational and ICT Risks", with the aim of concentrating in a single structure activities and skills related to IT and cyber risk and BCM issues; at the same time, the function formerly known as "Outsourcing Governance and BCM" was renamed "Outsourcing and Third-Party Risks", in line with the growing attention it intends to devote to supply relationships relevant to BancoPosta, in addition to internal service contracts (Guidelines) and outsourcing agreements.

Moreover, with Organisational Communication BP/01/2024 of 9 February 2024, a contact person for Business Continuity Management ('BCM ') activities was established in the Operational and ICT Risk area, and the overall staffing of the Risk Management function was also increased with four new staff members, in line with the Bank of Italy's recommendations.

During the various meetings, the Board of Statutory Auditors was informed of the activities carried out by the Risk Management function during 2023 and the actions planned for the year 2024. In particular, the Risk Management function was engaged, both in its capacity as programme management and for the many activities for which it was responsible (about one third of the total), in the execution of the Plan of Improvement Actions defined after the inspection conducted by the Bank of Italy between 14 March and 15 July 2022, a Plan approved by the Board of Directors in January 2023. All activities related to 10 of the 11 findings raised in the Inspection Report, whose implementation was planned in the year 2023 (a total of 67 out of 70 activities, i.e. 96% of all planned activities) were implemented as planned and regularly certified by the Internal Audit function. The remaining three activities of the Plan, related to the area of Guidelines and Outsourcing, will be implemented by December 2024, as planned.

It should also be noted, as already anticipated, that the Programme of Actions defined downstream of the Bank of Italy inspection on the governance and management of operational and IT risks in 2017, which on the whole envisaged 107 actions, was completed at the end of 2023 on schedule with the closure of the last initiative of the Data Centre Transformation project and all actions were certified by the Internal Audit function.

The Board of Statutory Auditors, in agreement with the relative function of BancoPosta, monitored the performance of the RAF indicators during 2023, on a quarterly basis through the Tableau de Bord of BancoPosta's Risk Management function.

The Control Body also verified the levels of materiality of the risks for BancoPosta with particular regard to risks of high relevance, relating:

• to the 'Financial Leverage', which is structurally higher than that of a traditional bank due to the composition of BancoPosta's assets: the Leverage Ratio, also as a result of a capital strengthening of € 100 million through the subscription of an Additional Tier 1 instrument by Poste, stood at 3.2% at year-end;
• to "Operational risks", which represent the most significant category in terms of capital requirements and absorption of the "Second Pillar"; capital absorption remains significant both in terms of minimum capital requirements, calculated proportionally to gross proceeds, and in the assessments made with the internal model for ICAAP purposes. The latter increased slightly in 2023. Losses recorded in the profit and loss account for the year amounted to about € 14.5 million, up compared to 2022, which was heavily affected by releases, but in any case in line with the Risk Appetite;
• to 'Interest Rate Risk', whose exposure, in terms of economic value, remained at levels consistent with the RAF target threshold (28%) except in the third quarter, when the operational strategy - illustrated to the Board of Directors in July 2023 - aimed at stabilising interest income over the plan horizon was implemented, which temporarily accentuated the asset-sensitive exposure. It returned to levels compatible with the Risk Appetite in December 2023;
• to the "Spread Risk", which is not relevant for capital requirements, but for unrealised gains/losses. In 2023, the BTP-Bund spread narrowed on a trend basis (from 214 points at the end of 2022 to 168 at the end of 2023), the portfolio carried at fair value (HTCS)

recorded declining implied capital losses at the close of 2023; however, the sensitivity of the value of the HTCS portfolio to this risk factor remains structurally high;

Medium risks include:

• Credit/Counterparty Risk: it increased at the end of 2023, maintaining an incidence on equity consistent with the Risk Appetite, especially in the absorption related to Counterparty Risk, which was affected by a temporary mismatch between the value of derivatives and the value of collateral paid by counterparties;
• a. Reputation Risk: there was a substantial decrease in complaints and appeals to the Banking and Financial Arbitrator, following a decrease in complaints with customers on the yields of Q/P series postal savings bonds ("BFP") for the years 21-30. In this regard, Poste Italiane had already started, as of March 2020, to no longer comply with the decisions of the ABF, as it did not agree with the position of said Arbitrator, regularly unfavourable for Poste. Thus, reimbursements were only made following unfavourable rulings by the Ordinary Judicial Authority, which amounted to around 32% of the rulings up to 31 December 2023. The favourable rulings issued by the trial judges and the order of the Supreme Court of Cassation (Sec. I of 10 February 2022, which were followed by further orders of the same content) also prompted the ABF to agree on the correctness of Poste Italiane's actions; in fact, in the third quarter of 2023 the ABF Coordination Board took a position in line with the principles set out by the Supreme Court of Cassation;
• Regulatory risk: this risk is decreasing as, following the transposition in 2020 of the EBA Guidelines on interest rate risk, the new rules for calculating counterparty risk, the Leverage Ratio and the Net Stable Funding Ratio ("NSFR") came into force in 2022, without any particular impact on BancoPosta. The residual, structural exposure is linked to changes in the prudential rules for government bonds as well as the still existing margins of uncertainty regarding the effective date and calculation details of the new SMA regulatory approach for operational risks and the updated methodology for calculating counterparty risk;

In the year 2023, the following are classified as minor risks:

• the business risk (due to the balanced mix of revenues and costs that are mainly variable);

• the risk of involvement in money laundering or terrorist financing (in line with the results of the self-assessment);

• Liquidity risk (thanks to stable funding as predominantly retail and extremely liquid assets, the regulatory indicators remain very high and the Liquidity Coverage Ratio ("LCR"') is increasing).

As at 31 December 2023, all the metrics of the RAF were in line with the objectives set in the RAF itself, and during the year there was only one misalignment - at the end of September 2023 - concerning the Interest Rate Risk metric in terms of economic value, which was the subject of prior communication to the Board of Directors and a Risk Opinion by BancoPosta's Risk Management, as explained above.

As at 31 December 2023, capital adequacy measures show a high Capital Ratio, although lower than at the end of 2022 (CET1 at 18.9%, compared to 20.3% in 2022; TCR at 22.1%, compared to 23.1% in 2022) and equity that continues to ensure a high Free Capital buffer compared to Pillar 2 absorption (47.1%, compared to 51.3% in 2022).

Economic performance measures were positive and stable, with the Return on Equity confirmed at 23% and RoRAC decreasing slightly to 36.3%.

Also in 2023, the exposure to operational risks was heavily influenced by the occurrence of events that occurred in previous years mainly related to "conduct risk" (internal fraud and events related to customers, products and professional practices) and the execution, delivery and management of processes. External fraud and business disruption and IT system failure are also relevant.

The composition of operational losses detected in 2023 shows a predominance of external fraud (30.8% of the total) followed by incorrect customer relationship management, products and professional practices, errors in execution, delivery and process management, and internal fraud.

In addition, releases in 2023 were lower than in 2022 and mainly related to 'Errors in the issuance/duplication of postal savings bonds' issued after 28 December 2000 and 'Robbery of valuables in custody at Service', while recoveries mainly related to bankruptcy disputes. The Risk Management function, as part of the process of defining the new Strategic Plan, estimated the impact of the scenarios on the risk profile ex ante, assessed the prospective adequacy of the capital and identified the risk appetite ("RAF") of BancoPosta RFC consistent with the strategic objectives and guidelines at Group level and, in order to also confirm for 2024 the objective of maintaining a Leverage Ratio at least equal to 3%, an allocation of profits generated by BancoPosta is expected.

Consistent with the business model and strategic objectives, and in line with what was done last year, the Risk Management function developed the proposed RAF for the financial year 2024, which

• provides for an increase in BancoPosta's equity of € 60 million, through the allocation of part of the profits generated by BancoPosta, as proposed as part of the 2023 budget approval process;
• reflects the application of the updated collection behavioural model that impacts interest rate risk estimates;
• in establishing the CET1 Ratio and Total Capital Ratio capacity, incorporates the guidance received in 2022 from the Bank of Italy on additional requirements to the standard ones to be met (Pillar 2 Requirement and Pillar 2 Guidance);
• confirms, for the Leverage Ratio, the intention to keep the indicator at or above 3%, which is the regulatory minimum for banks;
• confirms, for interest rate risk in terms of economic value, a level of exposure that is structurally higher than the average for banks, for which the regulations establish attention thresholds (supervisory outlier test) of 15% and 20%, due to the profound differences in business models, and therefore in the capital allocation between the various risk categories;
• reflects, for the liquidity risk metrics, the effects of the planned pledge of securities for approximately €11 billion in favour of PostePay S.p.A. (planned as early as 2023 but not yet implemented, as it is awaiting feedback from the Bank of Italy).

Lastly, the Board was informed that, as of the date of preparation of this Report, the (i) ICAAP-ILAAP/2023 Report, which will be prepared by the Risk Management function and the (ii) Report of BancoPosta's Internal Audit function on the ICAAP/ILAAP 2023 process, were not yet available, which will be presented by the respective functions to the Board of Statutory Auditors and the Control and Risk Committee at the meeting of 16 April 2024 and submitted to the Board of Directors for approval at the meeting of 18 April 2024. During 2023, the Board continued to monitor the interest rate risk management strategies identified by the management company BancoPosta Fondi SGR, as manager of BancoPosta's securities portfolio. The strategy launched by BancoPosta in 2022 was the subject of a focus meeting with the Head of BancoPosta and the Head of BancoPosta's Risk Management function. The topic was also discussed at several joint meetings of the Board with the Control and Risk Committee, which were attended by the Head of the BancoPosta function and the Heads of BancoPosta's control functions. Over the course of

these meetings, the Board was informed on an ongoing basis about interest rate trends and the results of the strategy implemented by BancoPosta, which since last year has set itself the goal of reducing the weight of its "variable" portfolio, anticipating the downward trend in interest rates, protecting its interest margin in the coming years and creating the conditions for new capital gains. The Board of Statutory Auditors and the Board of Directors received further insight into the interest rate risk management strategy at the meeting of 24 July 2023, during which the actions taken were illustrated, which represent an adjustment to the projections of the 2023 Budget and the then current Business Plan and the associated Risk Appetite Framework.

In addition, during the meeting held in December 2023, the Board received further insights into the evolution of the exposure in terms of economic value and interest margin.

➢ The Board of Statutory Auditors met periodically, and on a systematic basis, with BancoPosta's Compliance function ("Compliance") and was informed at the March 2024 meeting of the results of the activities carried out by the aforementioned function in the year 2023, for each area of BancoPosta RFC involved in the Compliance process and for the cross-company disciplines monitored directly or indirectly by the function, of the results of the "Compliance Risk Assessment" carried out in February 2024, with an indepth review of the weaknesses verified and the corrective actions planned in the year 2024 for their removal.

The Board was informed of the 'Plan of Activities 2024', which is related to the newly approved Strategic Plan, and which envisages mainly targeted initiatives: (i) in the area of Investment Services, the evolution of the service model offered in the post office and on other channels (on-line and telephone) together with the development of the New Service Model according to customer portfolios based on their characteristics and the strengthening of internal models for the management of ESG preferences (ii) in the area of Insurance Brokerage, the development of new service models both in post offices and on digital funnels and definition of further safeguards to strengthen distribution activities on the various channels; (iii) in the area of Banking Services and Postal Savings, the implementation of assessment activities aimed at further strengthening control over communications to customers pursuant to art. 118 of the Consolidated Law on Banking, as well as to improve the process of closing business accounts. Initiatives will also continue to boost the efficiency of the disallowance management process, as well as the planned implementation of assessments; (iv) in the area of Payments, the continuation of measures to strengthen fraud prevention controls (adoption of the Threat Metrix solution, including

the anti-malware component), the completion of upgrades to the SCT Instant platform and related processes, as well as the extension of the one-day disallowance operational process to SEPA Direct Debit (SDD) operations; (v) in the area of cross-company areas with Direct and Indirect Control, the consolidation of security, availability, continuity and third-party ICT risk controls, the implementation of the Plan for compliance with the European Union's Digital Operational Resilience Act ("DORA") regulation and the continuation of actions for the adaptation of corporate controls for other regulations with an impact across the board on business areas.

The results that emerged following the audits and actions carried out in 2023 were reported in the function's Tableau de Bord on a timely basis and did not reveal any critical issues that needed to be highlighted to the Board of Directors and Statutory Auditors separately from the aforementioned document.

During 2023, in line with the objectives outlined in the "2024 Sustain & Innovate Plus" Business Plan, the path of evolution of service models and products/services offered to customers and the related supporting partnerships continued.

In addition, during the year the Compliance function revised the methodologies related to the identification of the degree of riskiness of each regulatory perimeter area, formalising the new methodology for calculating Inherent Risk, Residual Risk with the aim of minimising discretion in risk assessment and having greater objectivity in assessments.

The Board of Statutory Auditors recalls that the Group has also adopted an Integrated Compliance Process, defined within the Group's Integrated Compliance Guideline and coordinated by a specific organisational unit. The activities of BancoPosta's Compliance function, in compliance with the autonomy envisaged by the reference legislation, are integrated within the scope of this process in line with the intent of the Group's Integrated Compliance Guideline to strengthen the Internal Control and Risk Management System ("SCIGR"), and to guard against the risks of non-compliance to which the Group is exposed, thereby fully implementing the principles of integrity, transparency and legality. The Compliance function continued its quarterly review of the adequacy and effectiveness of the process for handling complaints and appeals before the Banking and Financial Arbitrator and the Securities and Financial Ombudsman ("ACF"), carried out by the Financial Complaints Handling function in the DTO ("GRF") area. The activities carried out involved various areas (Banking and Financial Services, Postal Savings Services, Investment Services and Insurance Brokerage Services) and the results of the second-level controls, always shared with the GRF function, showed during 2023 a substantial adequacy of the complaints and appeals management process, albeit in the presence of some areas for improvement related to the registration in the company database (correct input of the reason, correct valuation of the outcome) and to the contents of the letters of reply to the customer, not always in line with what the customer actually requested/complained about. In addition, the need to strengthen the tracking of corrective actions was noted.

With regard to complaints, a total of 28,851 complaints were received during 2023 within BancoPosta, and specifically, complaints relating to Investment Services activities amounted to 870, an increase compared to 2022 (increase of 13% in complaints received) and numerically insignificant compared to the total number of operational reports (less than 0.1%). The aforementioned complaints are mainly related to the investment advisory service (in particular customer reports on advice on insurance investment products); complaints were processed within the time limit provided for by the regulations (60 days) and the preliminary investigations conducted by the competent company structure showed that only about 4% of the complaints lodged (29 cases) were well-founded. With reference to complaints relating to the Insurance Brokerage segment, during 2023, Poste Italiane received 218 complaints and redirected approximately 606 preliminary investigations under its competence to Poste Vita and Poste Assicura (IVASS Measure no. 46/2016). There were 192 complaints composed, among those under its competence, while the backlog at 31 December 2023 amounted to 28 complaints (being processed within the regulatory time-frame); these complaints were processed within the time-frame stipulated by the regulations (45 days) and in 96% of cases were unfounded. In addition, the quarterly monitoring of complaints on CPI products initiated in 2020 and reported to the SFA Committee continued during 2023.

With regard to complaints relating to Banking Services and Postal Savings, in 2023, the majority of complaints related to Postal Interest-bearing Certificates and specifically complaints about yields and requirements (about 22% of the total) as well as about the conditions applied, including tax charges (about 16% of the total). In general, only 7% of the more than 28,800 complaints made in 2023 were well-founded; with regard to complaints processed within the time limits set out in the legislation, a performance in line with 2022 was recorded, equal to 99.9% of those processed. In addition, complaints related to the area of payment services showed an improvement compared to the previous year's survey (99% of the 7,600 complaints in 2023, compared to 98.7% of the 6,801 complaints in 2022 for complaints composed within the terms). As of 31 December, the backlog of complaints not processed within the deadline was 5.

There was a decrease in the number of appeals before the ABF in 2023 (about 30% less than in 2022, 1,634 vs. 2,356), the effect of the substantial reduction in customer appeals on postal savings certificates series Q/P 21-30. In this regard, it should be noted that in the year 2023, the ordinary judicial authorities - Court of Appeal, Court and Justice of the Peace - consolidated their favourable orientation towards Poste, going from 32% favourable rulings in 2018 to 79% in 2022; the upward trend was also confirmed in 2023, the last quarter of which recorded a figure of 91% favourable rulings. The favourable rulings conform to the orders of the Court of Cassation, which confirmed the correctness of Poste Italiane's conduct, affirming that, by virtue of the provisions of article 173 of Presidential Decree no. 156/1973, customers were not entitled to a higher interest rate in the third decade of the life of the certificate.

In the area of the Banking and Financial Arbitrator, the changes that took place during the last quarter of the year also seem to point to the same outcome. In fact, based on the impetus injected by the July 2023 ruling and the consolidation of the Supreme Court's jurisprudence in subiecta materia, the first favourable decision to Poste Italiane was rendered by the ABF Coordination Board of Naples, which aligned itself with the principles set forth by the Supreme Court. This decision represents a turning point that leads to the conclusion that the long-standing issue is also concluded before the ABF, and this inference would seem to be supported by the fact that no further appeals have been lodged since the September 2023 decision.

With reference to fraud prevention and monitoring activities, relating both to the digital banking channel and to transactions performed with payment cards, in view of an increase in fraudulent attacks in 2023, additional security safeguards were put in place on strong customer authentication mechanisms, which provide for the activation of specific checks in the event of 'incorrect' entry of the OTP code sent by SMS or of the PosteID code. In order to make the entire authentication process even more robust, work was completed in 2023 to extend these controls to include passwords, and in particular to provide for similar block management and customer information methods. In addition, in order to combat fraud in the Post Office area, the operational limits on single top-up transactions on the current account (€ 5,000) have been implemented - at the end of 2023 - with the aim of introducing a daily cumulative limit on the individual card; in addition, the centres in Turin and Rome continue with their activities to combat risky transactions ordered by Post Offices through the VTPIE platform. With regard to boxing fraud (theft of cards during the dispatch process), a registered dispatch service for debit cards was launched in October 2023, a service that will also be extended to booklet cards from October 2024.

In 2024, improvements in the area of fraud prevention will continue, which will cover several actions to be carried out on the Integrated Anti-Fraud Services Platform ('PIAF'). Ongoing fraud training initiatives were carried out, aimed at keeping sales personnel upto-date on the evolving scenarios of the most commonly used forms of fraud.

With reference to the issues addressed here, during 2023, a number of important procedural, organisational and technological initiatives were completed to strengthen the ABF complaints and appeals handling process, and in early 2024, further strengthening activities on the disallowance handling process are expected.

The Board has been informed, during the year 2023, on the progress of all corrective actions planned in the areas of (i) Investment Services pursuant to MiFID2, (ii) Insurance Intermediation, (iii) Banking and Postal Savings Services, (iv) Payment Services pursuant to PSD2, (v) direct and indirect cross-sectoral areas (a series of initiatives for the consolidation of the company's oversight related to regulations with a cross-sector impact), (vi) Business Support and (vii) 'Cross-Sector Regulations' (initiatives for the consolidation of the company's oversight related to regulations with a cross-sector impact).

In the year 2023, the Compliance function performed ex-ante advisory activities in connection with the development and innovation of products and services under the "2024 Sustain & Innovate Plus" Business Plan.

With reference to Business Continuity Management ("BCM"), in 2023, the Board verified the implementation of actions in this area, with particular reference to the management of operational and IT risks, and took note of further actions taken. Specifically, the Board of Statutory Auditors noted that the continuous auditing activities on Business Continuity processes and solutions relating to the products and services attributable to BancoPosta RFC revealed a business continuity management system that was generally adequate for the ICT area and on the whole positive for the process area.

The results of the BCM tests - conducted by the functions involved - and the analyses carried out on the documentary system revealed areas for improvement with reference to the need to specify in the Disaster Recovery Plan the RPO parameters guaranteed for all the architectural solutions envisaged, to design and execute a test for the BPIOL service,

and to complete the activation of the Disaster Recovery site for the Enterprise Data Warehouse ('EDWH').

It should be noted that specialised audits of Business Continuity processes and solutions relating to BancoPosta's products and services are conducted annually by BancoPosta's Internal Audit Function on the basis of the Audit Plan, and the Board of Statutory Auditors has noted that the findings of the audit conducted by Internal Audit on the organisation and performance of testing activities, as well as on Business Continuity procedures, showed a generally positive assessment with some areas for improvement. The initiative was aimed at verifying, with a view to continuous auditing, the adequacy of the business continuity test plan for the processes and products managed directly by BancoPosta or delegated to PostePay and carried out by the relevant corporate structures, as well as the results thereof, as required by Bank of Italy regulations. The testing activities carried out during 2023 were audited.

The activities planned in 2024 in the area of Business Continuity Management will concern:

• the execution of the Business Impact Analysis and preparation of the Business Continuity Procedures according to the new model and in compliance with the BIA Business Continuity Procedure and Methodology, with the support of the new Archer tool;

• updating the BancoPosta Sector Plan to ensure compliance with the 40th update of Bank of Italy Circular 285;

• expansion of the scope of business continuity tests and continuation of tests with third parties.

The findings of the Internal Control Function's audits of BancoPosta's Financial Services showed an overall adequate assessment that nevertheless needs some action plans to make the solutions more effective. This assessment stems from the results of the business continuity tests performed during the year, the progress achieved on the IT infrastructure, and the progress of development initiatives, both those already completed and those still in progress. The action plans will allow the company's business continuity to evolve towards a cross-sector service, thus providing further added value for the entire Group.

The Board of Statutory Auditors monitored the issue of ICT Risk, noting that initiatives to strengthen the overall IT security management system and monitoring of ICT Risk continued in 2023.

In line with the ICT strategy, the DTO function continued its programme to adopt new technologies in the cloud and the Enterprise Data Warehouse (EDWH) migration project is nearing completion.

In this area, the Level II audits carried out during 2023 showed generally positive control systems, with areas for improvement already the subject of actions initiated and to be continued in 2024.

In relation to the DORA Regulation which, with the aim of achieving a high level of digital operational resilience for financial entities within the EU, introduces a harmonised body of governance, cyber security, ICT risk management and incident reporting measures, and requires all interested parties to adopt by 17 January 2025, certain technical and organisational measures, the Board of Statutory Auditors took note of the preliminary actions taken by the BancoPosta function aimed at assessing the organisational maturity of the current ICT risk management model and determining the impact that the DORA Regulation will have on BancoPosta.

➢ The Board met periodically and on a systematic basis with the Internal Control function ("Internal Audit") of BancoPosta, which in 2023, conducted 22 audits, in line with the annual audit Plan, 13 IT audits, in addition to the 1,427 territorial audits delegated to Poste Italiane's Internal Control function in respect of which the Internal Audit function directs the definition of the areas and checks to be performed, as well as those relating to administrative and accounting processes pursuant to Law 262/05 of interest to BancoPosta RFC. Moreover, with regard to the Improvement Action Plan defined following the inspections conducted by the Bank of Italy in 2022, the BancoPosta Internal Audit Function verified the implementation of the activities in terms of the suitability and effectiveness of the measures adopted and monitored the progress of the projects on a monthly basis, carrying out the necessary in-depth analyses.

As a result of the activities carried out, the Internal Audit function found a generally adequate Internal Control System for 2023, also taking into account the reinforcement achieved following the implementation of the improvement initiatives set out in the aforesaid Plan, which concerned, in particular, governance and control aspects, strategic planning processes, the structure of control functions and related support tools, as well as the processes of entrusting functions to Poste Italiane structures or to third parties. With regard to the control functions, in addition to the general strengthening of organisational structures, which was already implemented at the beginning of 2023, we highlight the

implementation, during the year, of actions aimed at refining methodological aspects, supporting information systems and management reporting.

The Board of Statutory Auditors, in the course of several meetings with the BancoPosta Internal Audit Function, took note of:

• completion by the Internal Audit function of the actions identified in the Improvement Action Plan in order to address the areas of improvement identified during the audit: the BancoPosta Internal Audit function, in addition to having been subject to an organisational initiative aimed at identifying two contact persons for auditing activities on the distribution network and IT activities, respectively, carried out project initiatives aimed at strengthening the methodology (regarding audit assessment and severity of audit actions) as well as improving the system supporting remote analyses; the strengthening of the activities of the Corporate Bodies and the internal board Committees through, inter alia, the holding of single-topic induction sessions for the Corporate Bodies, as well as in-depth meetings of the Control and Risk Committee, in which the Board of Statutory Auditors has always participated, aimed at ensuring an increasingly efficient discussion, within the collective body, of issues of interest;
• the enhancement of the Operating Guidelines and the related KPIs, as updated in conjunction with the renewal for the three-year period 2023-2025, which also took into account the Authority's findings in the aforementioned inspections;
• the establishment of a new Premium and Private Marketing function within BancoPosta with the aim of expanding the current service model to include all high-net-worth customers, identifying opportunities to develop the offer in conjunction with the Group's Strategic Marketing function;
• with reference to money laundering risk management, the formalisation of the new structure of the Group's Anti-Money Laundering function aimed at strengthening the system of existing controls through, inter alia, the strengthening of the Parent Company's role of direction, governance and supervision and the updating of some important governance policies, including the Group's Anti-Money Laundering Guidelines.

With reference to the sales channels, the territorial audits on Post Offices, delegated to Poste Italiane's Internal Control function on the basis of a specific Operating Guideline, confirmed a level of general positivity/adequacy of the control system, albeit with a progressive shift, compared to last year, of the incidence of positive assessments towards adequate assessments. In this regard, specific in-depth studies were initiated with the competent Territorial Functions for those Territorial Areas that registered a higher level of inadequacy (e.g. Sicily and the Centre).

Overall, the audit results for the other territorial structures (branches and call centres) were positive. In 2023, corrective actions were implemented to strengthen, both procedurally and from a process perspective, the system of Level I and Level II line controls on the operations of Mobile Sales Specialists ('SCMs'), while the strengthening of IT systems supporting the tracking of Level I and Level II controls is being finalised. Furthermore, as of February 2024, the 'Control Dashboard' for the management of first- and second-level controls carried out by the competent functions of the Commercial Network was started on a trial basis.

With reference to the development of the offer, the new Marketing Plan 2024 was presented last December in the Financial and Insurance Services Committee, where the central role of postal savings is confirmed, with evolution of the offer for new targets and improvement of the customer experience, as well as Environmental, Social and Governance (ESG) issues, for which specific initiatives for further strengthening are also planned.

The Board of Statutory Auditors, with reference to the activities entrusted by BancoPosta to Poste Italiane, noted that the structure of the Operating Guidelines was confirmed in 2023 as per the previous renewal for the three-year period 2023-2025, with a further strengthening in a more challenging perspective of the target thresholds for 28 KPIs, defined after periodic analyses carried out by the outsourcing risk governance function.

There are 13 Guidelines in force in 2023, classified according to the regulatory definition into 7 FEI (Essential or Important Function), 3 No FEI (Non-Essential or Important Function) and 3 Control.

In 2023, following both the indications provided by the Supervisory Authority and the findings of the audit activities on the monitoring process of the entrusted essential or important functions ("FEI"), the gradual strengthening of the monitoring of the Guidelines continued, which led to the expansion of the automatic KPI calculation process and the consolidation of the workflow for the periodic review of the KPIs, as part of the evolution of the reporting tools and the sharing of results with the entrusted functions.

For the purpose of verifying service levels, a total of 380 KPIs were periodically monitored, the outcome of which as at 31 December 2023 was positive overall with approximately 96% of the performance indicators being in line with the defined targets; there was thus a 2% improvement over the previous year when 94% of the indicators were in line. In this regard, the Board was informed at various meetings held with the Head of the BancoPosta function and the Heads of the BancoPosta control functions, and in particular at the meeting held on 5 December 2023, that the last activity envisaged in the Plan of Improvements relating to the automation of a set of 10 KPIs of the BancoPosta Guidelines, which was due to expire in December 2023, had been completed and certified by the Internal Audit function, in the same way as all the other actions provided for in 2023. The remaining activities in the 'Contracting and Outsourcing' area are already under way, with the last three actions in this area scheduled for completion by the end of 2024.

As a result of a reorganisation of activities, the Market Research Office, which previously operated within the DTO function, was merged within the Group's Strategic Marketing function, and this led to the need to formalise a new set of Operating Guidelines, classified as "Non FEI", to govern the activities for decision-making development and planning of marketing actions by BancoPosta, carried out within the Market Research Office.

Moreover, in continuity with previous years, the managerial incentive system (MBO) envisaged, among other things, synthetic performance indicators linked to the performance of the KPIs defined in the Operating Guidelines; for these KPIs, in 2023, the weight attributed to managers of the entrusted functions was increased, also following the findings of the aforementioned Bank of Italy inspection.

With regard to the processes subject to outsourcing to third parties, as set forth in the aforementioned Action Plan, the current model for the oversight and monitoring of KPIs in place on the activities outsourced to Poste Italiane was also extended to the outsourcing of FEIs. This was also confirmed by the audits conducted during the year on BancoPosta's oversight of these activities, which revealed an overall systematisation of the monitoring of KPI performance; in this regard, it should be noted that an analysis of the contractual agreements with ICT third parties was launched in order to update them, where necessary, in line with the minimum contents established by the relevant regulations. The work of the Management Committees on the individual Operating Guidelines, which are important components of the monitoring system for the awarding of contracts, continued, and all supporting documentation was formalised and properly filed.

The Board noted that the audit activities carried out by Internal Audit on the monitoring process of the entrusted activities showed an overall positive trend.

Lastly, with regard to the procedural framework, the "Regulations for the Process of Assignment and Outsourcing of BancoPosta RFC" and the "Monitoring of Entrusting and Outsourcing SLAs" procedure have been updated, with additions concerning, inter alia, the process of periodic mapping, by the Entrusting Contact, of the KPIs on BancoPosta's

Business Process Model, the formalisation of the criteria for identifying "penalty-type KPIs" and the formalisation of the criteria for applying and calculating penalties.

The Board, with reference to the 2023 Audit Plan, in the joint meeting with the Control and Risk Committee held on 18 March 2024 extensively reviewed the audit actions carried out in 2023 (Process Audit and IT Audit) with the related judgments, accompanied by the main corrective actions, indicating the actions with the highest severity, the progress of the work, the timing of implementation and the owners; the Board of Statutory Auditors also took note of the previous Audit Plans, which provide an update on the state of development of the main initiatives, as identified during the periodic monitoring activities.

The audit activities conducted in 2023 revealed areas for improvement regarding the control of digital channels, the placement, via web and app, of financial products, and although the fraud prevention systems were found to be advanced and integrated, the strengthening of the monitoring system and anti-fraud controls for credit transfers and SEPA pre-authorised debits (SDD) through fine-tuning of data extraction methods, of the rules of the monitoring indicators of pre-authorised debits to third-party banks and Poste Italiane customers, as well as the extension of PIAF functionalities to credit transfers at Post Offices, also in order to counter the most recent fraud scenarios involving the physical channel.

With regard to the management and placement of protection insurance policies aimed at both Retail and Business customers, given a general level of adequacy, there is a need to strengthen BP's oversight of governance and monitoring activities for standard group policies, while with regard to the development and management of BancoPosta's range of products and services given that the audits on the product governance and placement process for Mutual Investment Funds and Asset Management in Transferable Securities revealed an adequate system of controls, there is a need to strengthen the traceability of the various stages of the process in the dedicated document system, as well as to align ESGrelated controls in the application supporting the provision of advice.

In addition, in the area of investment services, the audit activities revealed the need to continue the consolidation of the processes, including control processes, of the new channels, as well as the process of evolving information systems to support the business.

At the joint meeting with the Control and Risk Committee on 18 March 2024, the Board of Statutory Auditors examined the 2024 Annual Audit Plan and the 2024-2026 Multi-Year Audit Plan, which was subsequently approved by the Board of Directors at its meeting on

19 March 2024. At this meeting, the Board of Statutory Auditors received extensive information on all audits to be carried out by the Internal Audit function in the year 2024. The Board of Statutory Auditors has also noted that the resources allocated to audit activities, both in terms of numbers and in terms of professionalism, are to be considered adequate in relation to the activities envisaged in the Plan, as well as with respect to the constant evolutions of the processes/activities carried out by Poste, and has also been informed of the three-year audit coverage 2024-2026.

With regard to BancoPosta's anti-money laundering supervision, the Board recalls that the organisational model for the unitary management of the risk of money laundering and terrorist financing at Group level provides for BancoPosta to entrust these activities to the Group Anti-Money Laundering function, governed by an appropriate Guideline. The Board noted that during 2023, BancoPosta's Anti-Money Laundering Risk Management function carried out the following activities, in particular:

• update of the BancoPosta Anti-Money Laundering Guidelines;
• preparation of the Annual Anti-Money Laundering Report and execution of the Risk Self-Assessment Exercise;
• completion of the AML Survey Questionnaire 2022;
• support to the CA/ARG and Marketing Functions within BancoPosta in the review analysis of the offer on the business target;
• reporting of activities entrusted through the monitoring of KPIs;
• evolution of analysis models applied to level II controls and adoption of a cloud-based solution;
• support to business functions during the launch of new products to analyse the inherent risk and identify possible mitigation measures (financing, smart collection, investments);
• drafting of anti-money laundering operating protocols (POA) as part of the distribution agreements for products of partner companies subject to anti-money laundering regulations;
• continuation of the update of the due diligence of higher-risk customers.

As at 31 December 2023, seven out of eight initiatives listed in the 2022 Annual Report had been completed. In particular, the measures enabling the use of PEAV were completed in line with the commitments undertaken and communicated to the Supervisory Authority following the inspections conducted in 2022 on BancoPosta and PostePay. With regard to

the re-planned initiative, the Board ascertained that it aims to increase the efficiency of the control activities already carried out with the current tools in use, through the use of automated procedures.

The Board was informed that in 2023 there was a decrease in the number of reports sent to the UIF in the BancoPosta area, which was also due to a decrease in the number of reports related to tax credit offences. The regions with the most at-risk operations were Campania, Lombardy, Tuscany and Lazio.

In the course of 2023, specialised training was carried out on Post Office Managers (DUPs) of areas operating in higher-risk areas and on Back Office staff, with the continuation of mandatory courses in order to maximise the percentage coverage of basic training. The majority of the resources allocated were related to developments in PEAV and the streamlining of Anti-Money Laundering processes.

It should be noted that at the beginning of 2024, the Risk Management Function was involved in the risk self-assessment activity referring to 2023 and the preparation of the Annual Anti-Money Laundering Report that will be presented in April 2024 to the Board of Directors. In particular, the purpose of the exercise is to identify, analyse and assess the main current and potential risks to which BancoPosta is or may be exposed, due to: (i) the unique regulatory and operational characteristics; (ii) its significant size and widespread territorial presence; and (iii) the procedural, organisational and infrastructural complexity.

In this regard, the Board was informed, during the March 2024 meeting attended by the Head of the Risk Management function, that in line with last year, a "low" residual risk value emerged for 2023, defined on a scale of 4 residual risk values ("Not Significant", "Low", "Medium" and "High"), based on the combination of the inherent risk and vulnerability ratings.

With reference to the risk of money laundering, the Internal Audit function reported that during the year 2023, the project for the implementation of the "Pratica Elettronica di Adeguata Verifica" (PEAV) (Electronic Due Diligence Procedure) continued, aimed at progressively strengthening (i) the customer profiling process following the introduction of the update of the due diligence on a periodic basis according to the risk profile, (ii) the integration with the device channels in order to ensure real-time monitoring of all operations as well as the adoption of any reinforced measures for the assessment of the merits of operations. Also based on the Audit activities conducted by the Internal Audit function, an overall adequate control system emerged, given the significant complexity of

the project, with the need for specific action plans referring, for the most part, to the need to finalise the new organisational model to ensure the timely updating of the due diligence questionnaires from a risk-based perspective and to strengthen the due diligence process and monitoring of the beneficial owner for legal entity relationships. The IT audits on the internal control system protecting the security of the information systems supporting the Due Diligence processes also revealed general adequacy, given the significant project complexity. Pending the completion of the new management model for the Due Diligence Questionnaire, campaigns were launched during the audit to update the profiles identified by the Group Anti-Money Laundering structure relating to high-risk customers with expired Due Diligence Questionnaires.

During 2024, the BancoPosta Anti-Money Laundering function will provide support: (i) in the evolution of the Electronic Due Diligence Procedure (PEAV); (ii) in the evolution of the models used for Level II controls; (iii) to the Business functions for ex ante risk assessments (new products, revision of existing products with respect to specific targets); (iv) in the continuation of updating activities in the area of Due Diligence on the basis of the new profiling engine; (v) in the progressive adaptation of new automatic anomaly indicators and in the enhancement of reporting functions. In addition, plans are in place to reinforce line controls in the area of funds transfer (including top-ups on digital channels) and with regard to new funding for investments. Lastly, plans are in place to update the Anti-Money Laundering Procedure and to cooperate with the Group Anti-Money Laundering Function and other Functions of Poste Italiane to define the Remote Onboarding procedure.

The Board of Statutory Auditors, as already illustrated, was informed of the completion of the corrective measures implemented by BancoPosta following the inspection carried out by the Bank of Italy in 2017.

The Board was also informed about the initiatives implemented in the IT/Information Security area, on sales channels, on the provision of investment services and on the distribution of insurance products, on the mobile channel (BancoPosta and PostePay mobile apps), as well as on strengthening actions in the area of on-line fraud and illegal events in the sales network.

In the course of 2023, the Board verified the results of the checks on the territorial sales network, assigned to Poste Italiane's Internal Control function on the basis of the specific Operating Guideline, which showed a generally adequate and gradually improving control system.

Following the update of the regulatory framework for the governance mechanisms of BancoPosta RFC (BancoPosta's Organisational and Operating Regulations, the Guidelines for Identifying Key Personnel in relation to BancoPosta RFC) approved in 2023, the following were also updated: the Regulations for the process of entrusting and outsourcing BancoPosta RFC, the Regulations of the Financial and Insurance Services Committee, the Information Security Act, the Guidelines for defining the Risk Appetite Framework and the assessment of the Most Significant Transactions of BancoPosta RFC, the Product Governance Guidelines for Poste Italiane's investment, insurance and banking products, and the Guidelines for the Provision of Investment Services.

With regard to operational incidents, the Board of Statutory Auditors has kept constant focus on those that occurred during the previous year, inviting BancoPosta and the DTO function to give priority to preventive interventions in order to avoid the occurrence of such events.

The Board, with reference to IT operational incidents within BancoPosta, was informed that during 2023 BancoPosta's BCM group was involved by the DTO in assessing 14 HIGH severity disruptions, of which 6 incidents with an impact on BancoPosta financial services, classified as serious by the Incident Management Unit, and reported to the Bank of Italy, in accordance with the relevant EBA regulations. The incidents that recurrently affected Financial and Payment Services, including those classified as non-serious, included incidents that made the BancoPosta APP and Instant Payment service unavailable on several occasions.

Actions initiated in 2023 and to be completed in 2024, with the aim of reducing the recurrence of events on these critical services, include:

• the strengthening of first-level system activities in the Service Control Room by adopting automatic tools capable of performing repetitive checks on the status of the infrastructures in use for the business-critical services provided;
• the continuation of the routine 'health check' of the new architectural/infrastructural components such as Kafka, Mongo DB and OpenShift in order to verify the ability to guarantee scalability, consistency and performance of the application services delivered through these new functionalities;
• the implementation of actions to further improve the efficiency of the storage infrastructure.

In addition to the provisions for incident management in the financial sector, the control model for malfunctions in the event of an impact on PSD2c services was strengthened in 2023, with the publication of the procedure Management of passive BancoPosta PSD2 Open Banking services. During 2023, 7 PSD2 incidents were detected and reported to the Bank of Italy, of which 4 were platform-specific and 3 also affected direct services. In 2023, in line with the provisions of the Group's Event and Incident Management Guidelines, the Financial Services Incident Management Procedure (BancoPosta), the DTO Monitoring procedure (IT Malfunctioning and Disruption Management Procedure) and the Real Estate Security Incident Management Procedure were updated. In addition, by outsourcing to the Group BCM, revisions of the incident management procedures of Physical Security, Fraud, Fund Movement, and Occupational Health and Safety were initiated.

In addition, the classification process set out in the incident management procedures, which provides for a pre-classification of the controls with the support of the Supervised entities and a subsequent final classification by the Incident Management Unit for incidents assessed as 'serious' by the control units, was duly applied during 2023.

The Board of Statutory Auditors recommends, as part of the IT interventions, to (i) make a further effort to accelerate the completion times of the IT remedial plans and (ii) complete the IT intervention plan in the Anti-money laundering area, as also reported by the Bank of Italy inspection.

❖ Supervisory activities of BancoPosta's Supervisory Board and Inspections by the Supervisory Authorities.

During the year, the Board oversaw BancoPosta, also with reference to compliance with the Supervisory Standards contained in Bank of Italy Circular 285/2013, and in close conjunction with the Remuneration Committee, correct application of the regulations governing the remuneration of the heads of the Company's Control Functions.

The Board of Statutory Auditors periodically reviewed the structure of the Guidelines governing the relations concerning functions outsourced by BancoPosta to Poste Italiane in order to oversee the criteria applied for the allocation of costs associated with Poste's activities for the management of RFC, since such costs must be allocated in accordance with criteria that reflect the real contribution of the various management activities to BancoPosta RFC results and to those of the company as a whole.

With regard to control activities contracted out to Poste Italiane functions, the Board of Statutory Auditors, in line with the relevant Supervisory Standards applied to BancoPosta RFC - Circular 285/2013, Chapter 1 BancoPosta, Section II, Par. 5, assessed the costs, risks and benefits of the contract on an annual basis. During a meeting with the Head of BancoPosta, the Board of Statutory Auditors acknowledged the management roles of the activities assigned by BancoPosta to other Poste Italiane's Functions via the Operating Guidelines, and the controls designed to mitigate the operating risks deriving from these assignments, and deemed the entire set of Operating Guidelines, which was subjected to validation on adequacy by a consultancy firm, to be adequate.

The Compliance and Risk Management functions have periodically prepared their respective reports on compliance risk and significant risk exposures for BancoPosta, and on the state of progress of the initiatives undertaken as a result of the commitments given to the Bank of Italy following the inspection conducted in 2017, aimed at analysing the systems for the governance, control and management of operational and IT risks as part of BancoPosta's operations in respect of which all initiatives were implemented by the end of 2023, in line with the time-scales set forth and with Consob. In this regard, the Board of Statutory Auditors ascertained the completion of the corrective action programme adopted following the Bank of Italy's findings, with the completion of the last initiative in the area of Data Centre Transformation, and all the initiatives were certified by Internal Audit.

In March 2023, Consob launched a thematic investigation into the processes and procedures adopted, or under development, with regard to ESG. The reply was provided on 19 May 2023.

In July 2023, Consob sent a request for specific investigations on: (i) customer profiling, (ii) concentration control, (iii) transparency measures on ex post costs and charges, and (iv) how to identify off-premises personnel. On 7 September 2023, feedback was provided within the deadline requested by the Authority. In January 2024, Consob requested unitary feedback on different areas of investigation including: (i) further update on the topics covered by the above-mentioned feedback of 7 September 2023 (profiling, concentration control, transparency measures on costs and charges, and identification methods); (ii) new Customer Service and Portfolio Model, to which feedback was provided on 23 February 2024.

As already mentioned, for the sake of completeness of information, we would also like to remind you of the inspection started on 14 March 2022 by the Bank of Italy, pursuant to Article 54 of Legislative Decree no. 385 of 1 September 1993, in Poste Italiane S.p.A. - BancoPosta RFC and completed on 15 July 2022, aimed at verifying the adequacy of the models adopted by BancoPosta with reference to: business management, governance and control systems - with particular focus on outsourcing and control functions (Compliance, Risk Management and Outsourcing Governance and Internal Audit) - the assessment of interest rate risk, as well as an in-depth examination of the new tax credit business and associated risks. Based on the Inspection Report delivered to Poste Italiane on 30 November 2022, a detailed Plan of Improvement Actions ('Plan') was prepared and approved by the Board of Directors in January 2023.

The Board of Statutory Auditors, in the course of various meetings held with the Head of the BancoPosta function and the Heads of BancoPosta's Control functions, constantly monitored the implementation of the aforementioned Plan, in order to verify the progress of activities and compliance with the timetable communicated to the Supervisory Authority.

In the course of its supervisory activity, the Board also took note of the communication notified by the Bank of Italy on 21 September 2023, provided during the Board of Directors' meeting of 27 September 2023, whereby the Bank of Italy informed the Company of its decision not to proceed with the sanctioning proceedings initiated by the Authority with regard to finding No. 10 (Initiation of tax credit business: AML issues); and No. 11 (Controls on risk profiling of due diligence).

The implementation of the measures was constantly monitored by the Board, which liaised with BancoPosta's Internal Audit Function, verifying that their progress was reported to the Bank of Italy on a quarterly basis, through Tableau de Bord and specific documents. In particular, the Board, at its meeting of 5 December 2023, held with the Head of the BancoPosta Function and the heads of BancoPosta's Control Functions, noted that the activities defined in the Plan of Improvement Actions are largely complete, with only three measures remaining to be completed by the year 2024. As of Q4 2023, the overall progress of the Plan is 96%, with 67 actions completed out of a total of 70 envisaged in the Plan. The three remaining actions, all pertaining to project No. 3 'Contracting and Outsourcing', whose activities have already been started, are scheduled (i) in June 2024 for the action relating to the completion of the monitoring and reporting of Important Essential Functions ('FEI') outsourcing and (ii) in December 2024 for the automation of a set of KPIs of other Guidelines relating to an outsourcing contract.

The Board therefore noted the positive progress of the Action Plan with respect to the programme and that, as things stand, there are no critical issues or impediments to the realisation of the further 3 initiatives to be completed by the end of this year.

With regard to the procedures for managing the funds received by PostePay in exchange for the issuance of electronic money, which were the subject of a communication from the Bank of Italy in July 2022 regarding full compliance with the Supervisory Provisions, following discussions with the Authority aimed at identifying an operational solution, on 4 August 2023 BancoPosta and PostePay sent the Bank of Italy a draft of a revolving pledge agreement, which was also supported by the opinion of an external legal firm.

❖ Observations concerning BancoPosta's internal control system

BancoPosta's internal control system is based on:

• Control Bodies and Functions, involving, each for their respective competencies, the Board of Directors, the Control and Risk Committee, the Sustainability Committee, the Head of BancoPosta, the Board of Statutory Auditors, as well as the Company Functions with specific duties in this regard;
• information flows and coordination methods between the parties involved in the internal control and risk management system;
• governance mechanisms.

With regard to the governance mechanisms, during 2023 and up to the current date, the BoD has approved various regulations and guidelines designed to strengthen the nature and effective functionality of the overall internal control system over BancoPosta RFC:

• Update of the BancoPosta Organisational and Operating Regulations, the Product Governance Guidelines for investment, insurance and banking products and the Regulations for the Contracting out and Outsourcing Process;
• Report on ICT Adequacy and Costs BancoPosta;
• ICT strategic policy document
• Update of the Anti-Money Laundering Guidelines BancoPosta RFC;
• Approval of the BancoPosta RFC Risk Appetite Framework for 2023;
• Updated of the 2023 "Guidelines for BancoPosta RFC's remuneration and incentive policies";
• Update of the "Guideline for the identifying BancoPosta's Material Risk Takers and Annual identification process of BancoPosta RFC's Material Risk Takers";
• Update of the collection behavioural model;
• Renewal of the three-year committed repo facility granted by Cassa Depositi e Prestiti S.p.A. in favour of Poste Italiane S.p.A. - BancoPosta RFC;
• Report on the analysis of operational and security risks in payment services;
• Guideline on limits and criteria for the selection of issuers for the public placement of bonds and certificates.

In summary, in light of the overall activities carried out and considering:

• the organisational structure of BancoPosta RFC, specifically;
• the existing set of procedures and their continuous updating;
• the results of the verification and evaluation activities received by the Board of Statutory Auditors from the BancoPosta's Internal Control Function;
• the results of the inspection activities carried out by the various Supervisory Authorities;
• the assessment results recorded during the year by the other corporate control functions provided for by the Internal Control and Risk Management System;
• the information acquired during participation by the Board of Statutory Auditors in the meetings of the Board of Directors and Board Committees;
• the exchange of information with the Independent Auditors, the Data Protection Officer ("DPO") and the SB pursuant to 231/2001;
• the main developments of the Internal Control and Risk Management System and, in particular, the initiatives to strengthen it;
• the compensatory controls and improvement measures implemented and/or under way in relation to the findings relating to the Internal Control and Risk Management System highlighted by the BancoPosta Internal Audit functions and the Audit functions of Group companies;
• further events with potential impacts on the Internal Control and Risk Management System, including corporate project initiatives in specific operational areas, implemented or in the process of progressive implementation;
• the evidence acquired from management of the Whistleblowing reporting system,

the Board of Statutory Auditors is not aware of critical situations or events that might suggest shortcomings in the Internal Control System of BancoPosta RFC in particular.

*****

19. and 20. Final considerations on the audit procedures performed and an indication of any proposals to be presented to the General Meeting pursuant to art. 153, paragraph 2 of Legislative Decree no. 58/1998.

In accordance with Consob requirements, we declare that in the performance of our duties we have not been made aware of omissions, instances of negligence, irregularities or evidence of inadequacies in the organisational structure, Internal Control System or Administrative and Accounting System considered relevant for the purposes of this Report. On the basis of the supervisory activities carried out during the year, the Board of Statutory Auditors, considering the content of the reports prepared by the Independent Auditor and having noted the attestations issued jointly by the Chief Executive Officer and the Manager responsible for financial reporting, is not aware, to the extent of the scope of its activities, of any reasons preventing the approval of the financial statements of Poste Italiane and the consolidated financial statements of the Poste Group for the year ended 31 December 2023, as well as the proposal for allocation of the profit for the year, including the dividend distribution by the BoD.

Rome, 12 April 2024

for the Board of Statutory Auditors

Chairman Mauro Lonardo (original signed)

(This report has been translated from the original issued in accordance with Italian legislation)

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Deloitte & Touche S.p.A Via Vittorio Veneto, 89 00187 Roma Italia

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INDEPENDENT AUDITOR'S REPORT PURSUANT TO ARTICLE 14 OF LEGISLATIVE DECREE N. 39 OF JANUARY 27, 2010 AND ARTICLE 10 OF THE EU REGULATION 537/2014

To the Shareholders of Poste Italiane S.p.A.

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Opinion

We have audited the consolidated financial statements of the Poste Italiane Group (the "Group"), which comprise the consolidated statement of financial position as at December 31, 2023, consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the financial position of the Group as at December 31, 2023, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree n. 38/05.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Poste Italiane S.p.A. (the "Company") in accordance with the ethical requirements applicable under Italian law to the audit of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Impairment test of goodwill allocated to the "Mail, Parcels and Distribution" CGU and "Payments and Mobile" CGU

Description of the key audit matter

The Group has recognized Euro 796 millions of goodwill under Intangible Assets in the consolidated financial statements as at 31 december 2023. In particular, this goodwill is mainly related:

• · for Euro 459 millions to the cash generating unit ("Cash Generating Unit" -"CGU") "Payments and Mobile", resulting from the acquisition of the LIS group, and
• for Euro 213 millions to the CGU represented by the "Mail, Parcels and Distribution" business segment characterized by the persistence of negative economic results and the decline of the postal market in which the Poste Italiane Group operates, further aggravated by the current scenario characterised by a significant volatility of the main market factors and significant uncertainty with regard to economic expectations.

As required by IAS 36 "Impairment of assets", these goodwills are not svstemically amortized but are subject to impairment test ("impairment test"), carried out at least annually, by comparing their carrying amounts with the recoverable amounts of the corresponding CGU.

"Mail, Parcels and Distribution" and "Payments and Mobile" CGUs were subject to the assessment of the recoverability of their carrying amount, inclusive of the goodwill as well as the other assets allocated to the CGUs, based on the 2024-2028 Strategic Plan approved by Poste Italiane S.p.A.'s Board of Directors on March 19, 2024 (the "2024-2028 Strategic Plan"). In particular, the recoverable amount was determined by estimating the "value in use" of both the CGUs, representative of the estimate of the future cash flows expected from the use of the assets included in the CGUs, including, in particular, with reference to the "Mail, Parcels and Distribution" CGU, the properties used as post offices and mechanization and sorting centers, as part of the ordinary company production process and taking into account the obligation to fulfill the Universal Postal Service and the economic conditions envisaged for the services rendered to BancoPosta's ring-fenced capital. These flows were discounted at an appropriate rate.

The impairment test carried out by the Company confirmed the recoverability of the goodwill and of the other assets attributed to the CGUs.

In the Appendix to Chapter 8 "Proposed shareholder resolutions and other information" of the Report on Operations and in Notes 2.5 "Material Information on Accounting Standards - Impairment of assets", 2.6 "Use of estimates", paragraphs "Impairment tests of goodwill, cash generating units and equity investments", "Mail, Parcels and Distribution CGU" and "Payments and Mobile CGU", and 4.4 "Operating Segments", as well as in Note A3 "Total Assets - Intangible Assets" of the consolidated financial statements, disclosure on the aspects described above is provided.

	Considering the relevance of the amount of goodwill recognized in the financial statements and attributed to the "Mail, Parcels and Distribution" CGU and "Payments and Mobile" CGU, the subjectivity of the estimates related to the determination of the cash flows expected of those CGUs, taking into account also the uncertainties related to the current macroeconomic environment and the key variables of the impairment model, we considered the impairment test of goodwill allocated to the "Mail, Parcels and Distribution" CGU and to the "Payments and Mobile" CGU a key audit matter of the Group's consolidated financial statements as at December 31, 2023.
Audit procedures performed	The main procedures carried out as part of our audit work, also with the support of Deloitte network experts, have included the following:
	· identification and verification of the operational effectiveness of the key controls carried out by the Company over the impairment testing process;
	· obtaining an understanding of the methods and assumptions adopted by the Company to carry out the impairment test;
	· verification of the consistency of the methodological approach adopted by the Company, with particular reference to the identification of the CGUs and the determination of the related recoverable amounts, with respect to the requirements of the accounting policy IAS 36 "Impairment of Assets";
	· analysis of the reasonableness, also by obtaining information from the Company, of the principal assumptions adopted to estimate future cash flows expected by the CGUs, also taking into account the uncertainties related to the current macroeconomic environment and the key variables used in the valuation model adopted for the impairment test;
	· verification of the logical and mathematical correctness of the determination of the cash flows in the context of the impairment test mentioned above, as well as of the overall reasonableness of the calculation of the weighted average cost of capital ("WACC") and of the consistency of the assumptions related to the "terminal value", that is the value that represents the ability of the CGUs to generate cash flows, estimated beyond the explicit forecast period of the 2024-2028 Strategic Plan,
	· review of the sensitivity analysis prepared by the Company;
	· verification of the completeness and compliance of the disclosures provided by the Company in the consolidated financial statements with respect to the the applicable international financial reporting standards.

	First application of the international financial reporting standard IFRS17 - Insurance Contracts
Description of the key audit matter	The new international financial reporting standard IFRS 17 "Insurance Contracts" came into effect for reporting periods beginning on or after January 1, 2023, replacing the previous standard IFRS 4. Under the new standard the insurance contracts are measured based on the General Model or Building Block Approach, the Variable Fee Approach, a mandatory variant for contracts with direct participation features, or the Premium Allocation Approach, a simplified model for contracts with a coverage period of one year or less as well as for multi-year contracts for whom simplification linked to the model would not lead to a significantly different result of the Insurance Liabilities compared to that obtainable with the general model.
	In Note 2.3 "New accounting standards and interpretations and those soon to be effective" the Group, as required by the international financial reporting standards, provides qualitative and quantitative information regarding the implementation of the new accounting standard, the measurement choices made during the transition, as well as the assessment of potential impacts resulting from the application of this new standard in the first reporting period of adoption. In particular, net of the tax effect, the first application of IFRS 17 resulted in an overall negative effect on shareholders' equity equal to Euro 897 million respectively at the transition date, represented by January 1, 2022, and Euro 1,059 million as at December 31, 2022. It also determined for the 2022 financial year a positive effect on the net profit for the year equal to Euro 72 million and a negative effect on the total other comprehensive income equal to Euro 234 million.
	The disclosure provided by the Group in the consolidated financial statements as at December 31, 2023, aims to enable its users to understand the impacts resulting from the application of the new accounting standard.
	In consideration of the pervasive interpretative and operational complexities arising from the application of the new international financial reporting standard and the specific valuation methods adopted during the transition, the discretionary component inherent in the estimation process of insurance liabilities, particularly the Contractual Service margin, and the significance of the aforementioned effects, we considered the first-time adoption of the international financial reporting standard IFRS 17 a key audit matter of the Group's consolidated financial statements as at December 31, 2023.
Audit procedures performed	In performing the procedures carried out as part of our audit work, also with the support of Deloitte network experts, we preliminary examined the implementation process carried out by the Group, focusing on the measurement choices made that are relevant to estimating the effects resulting from the first application of IFRS 17, particularly regarding insurance liabilities.

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The following main procedures were performed:

• · obtaining and examining the methodological notes prepared by the Group with reference to the models and evaluation approaches followed and any further documentation produced and made available, with particular reference to the interpretative areas, also through collection of information, interviews with the competent functions and in-depth analysis with external consultants;
• · analysis of the documentation to support the application choices made by the Group for the identification of the groups of insurance contracts in relation to the provisions of the standard and consequent valuation models adopted at the transition date and for the determination of the margin on contractual services at that date;
• reasonableness analysis of the main technical and evolutionary methods and hypotheses on which the estimates of future cash flows. the adjustment for non-financial risk and the margin on contractual services were based for the purposes of determining the impacts deriving from the first application of IFRS 17;
• · verification of the correct determination of the impacts deriving from the first application of the standard and related accounting representation;
• verification of the completeness and compliance of the disclosures provided by the Company in the consolidated financial statements with respect to the the applicable international financial reporting standards.

Valuation of Insurance Liabilities

Description of the key audit matter

As at December 31, 2023, the Group recognized in the consolidated financial statements in the item "Liabilities under insurance contracts" (the "Insurance Liabilities"), for a total amount of Euro 155,338 millions, of which Euro 155,086 million relating to Insurance Liabilities valued on the basis of the "General Model or Building Block Aporoach" and "Variable Fee Approach" valuation models, and Euro 252 million relating to Insurance Liabilities valued on the basis of the "Premium Allocation Approach" valuation model. These adopted valuation models are required by the new international financial reporting standard IFRS 17 "Insurance contracts".

In particular, the Insurance Labilities, equal to approximately 57% of the Group's total liabilities and equity, are representative of the liabilities towards the insured parties deriving from the insurance contracts stipulated by the insurance companies of Poste Italiane Group.

	In Notes 2.4 "Changes to accounting policies" and 2.6 "Use of estimates", paragraph "Insurance liabilities" the criteria and methodologies applied in determining the Insurance Liabilities by the Group are disclosed. In compliance with the provisions of the accounting standard IFRS 17, at the inception of an insurance contract or an investment contract with discretionary participation features, a liability or an insurance asset is recognized the amount of which is based on the the sum of the fulfilment cash flows necessary to fulfill the contract, on the determination of an adjustment to protect non-financial risks (Risk Adjustment), and of the margin on contractual services (Contractual Service Margin) which will be released throughout the life of the insurance contract.
	The determination of Insurance Liabilities is based on complex estimation processes and requires the use of assumptions and hypotheses of a technical, demographic, actuarial and financial nature that include, among others, the forecast of future cash flows linked to the fulfillment of the contracts falling within the scope of application of IFRS 17, the determination of the discount rate to be applied in the present value calculation, the variation in the Group's share of the fair value of underlying items, the risk adjustment for non-financial risk, and the quantification of the portion of the contractual service margin to be recognized in the income statement.
	In paragraph 7.3.3. "Insurance Services Strategic Business Unit" of the Report on Operations and in Notes 2.3 " New accounting standards and interpretations and those soon to be effective", 2.4 "Changes to accounting policies", 2.6 "Use of estimates", paragraph "Insurance liabilities", B5 "Total Consolidated liabilities - Liabilities under insurance contracts" and C3 "Consolidated statement of profit or loss - Net revenue from insurance services", disclosure on the aspects described above is provided.
	In consideration of the significance of the amount of the Insurance Liabilities recorded in the consolidated financial statements and the complexity involved in the determination process of the discretionary component, including the margin on contractual services, we considered the valuation of Insurance Liabilities a key audit matter of the Group's consolidated financial statements as at December 31, 2023.
Audit procedures performed	The main procedures carried out as part of our audit work, also with the support of Deloitte network experts, have included the following:
	· understanding the key measurement models adopted by the Group in the assessment of Insurance Liabilities obtaining and analyzing methodological notes and conducting interviews with relevant business functions;
	· understanding the process of determining Insurance Liabilities, which included knowledge of management, assumptive, and actuarial guidelines, as well as the processes for defining hypotheses and assumptions used by the Management;

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• · identification and verification of the operational effectiveness of the key controls carried out by the Group in relation to the evaluation and determination process of the Insurance Liabilities;
• carrying out verification procedures in relation to the completeness and adequacy of the portfolios taken as reference and and their underlying data;
• understanding the calculation methodologies of Insurance Liabilities and verification of the application of these methodologies in the actuarial calculation and projection models, which included, among others, the following main procedures;
  • o verification of the reasonableness of the assumptions and technical hypotheses used in estimating expected cash flows;
  • o analyzing the economic scenarios used and checking the correctness of the applied discount rates and verification of the correctness of the discount curve applied and the determination of the component relating to the illiquidity risk premium;
  • verification of the correctness of the calculation of the present value of O expected cash flows:
  • o verification of correctness of the calculation of the Risk Adjustment percentage, for groups of insurance contracts and of the consistency with what defined in the methodological notes;
  • o analysis of the consistency with what envisaged by the principle of the criterion identified for the release of the margin on on contractual services and verification of the correct determination of the coverage units for the purposes of using them for the definition of the release to the income statement;
  • o verification of the reasonableness of the Group's share of the fair value of underlying items;
  • o verification of the correct recognition of economic and financial impacts related to the Insurance Liabilities.
• · verification of the completeness and compliance of the disclosures provided by the Company in the consolidated financial statements with respect to the the applicable international financial reporting standards.

Responsibilities of the Directors and the Board of Statutory Auditors for the Consolidated Financial Statements

The Directors are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree n. 38/05 and, within the terms established by law, for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they have identified the existence of the conditions for the liquidation of the parent company Poste Italiane S.p.A. or the termination of the operations or have no realistic alternatives to such choices.

The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with International Standards on Auditing (ISA Italia), we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• · Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• · Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
• · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• · Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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• · Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• · Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance, identified at an appropriate level as required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence applicable in Italy, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report.

Other information communicated pursuant to art. 10 of the EU Regulation 537/2014

The shareholders' Meeting of Poste Italiane S.p.A. has appointed us on May 28, 2019 as auditors of the Company for the years from December 31, 2020 to December 31, 2028.

We declare that we have not provided prohibited non-audit services referred to in art. 5 (1) of EU Regulation 537/2014 and that we have remained independent of the Company in conducting the audit.

We confirm that the opinion on the consolidated financial statements expressed in this report is consistent with the additional report to the Board of Statutory Auditors, in it's role of Audit Committee, referred to in art. 11 of the said Regulation.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Opinion on the compliance with the provisions of the Delegated Regulation (EU) 2019/815

The Directors of Poste Italiane S.p.A. are responsible for the provisions of the European Commission Delegated Regulation (EU) 2019/815 with regulatory technical standards on the specification of the single electronic reporting format (ESEF - European Single Electronic Format) (hereinafter referred to as the "Delegated Regulation") to the consolidated financial statements as at December 31, 2023, to be included in the annual financial report.

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We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 700B in order to express an opinion on the compliance of the consolidated financial statements with the provisions of the Delegated Regulation.

In our opinion, the consolidated financial statements as at December 31, 2023 have been prepared in XHTML format and have been marked up, in all material respects, in accordance with the provisions of the Delegated Regulation.

Due to certain technical limitations, some information contained in the notes to the consolidated financial statements, when extracted from XHTML format in an XBRL instance, may not be reproduced in the same way as the corresponding information displayed in the consolidated financial statements in XHTML format.

Opinion pursuant to art. 14 paragraph 2 (e) of Legislative Decree 39/10 and art. 123-bis, paragraph 4, of Legislative Decree 58/98

The Directors of Poste Italiane S.p.A. are responsible for the report on operations and the report on corporate governance and the ownership structure of the Poste Italiane Group as at December 31, 2023, including their consistency with the related consolidated financial statements and their compliance with the law.

We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 720B in order to express an opinion on the consistency of the report on operations and some specific information contained in the report on corporate governance and the ownership structure set forth in art. 123-bis, n. 4 of Legislative Decree 58/98, with the consolidated financial statements of Poste Italiane Group as at December 31, 2023 and on their compliance with the law, as well as to make a statement about any material misstatement.

In our opinion, the above-mentioned report on operations and some specific information contained in the report on corporate governance and the ownership structure are consistent with the consolidated financial statements of Poste Italiane Group as at December 31, 2023 and are prepared in accordance with the law

With reference to the statement referred to in art. 14, paragraph 2 (e), of Legislative Decree 39/10, made on the basis of the knowledge and understanding of the Group and of the related context acquired during the audit, we have nothing to report.

Statement pursuant to art. 4 of the Consob Regulation for the implementation of Legislative Decree 30 December 2016, n. 254

The Directors of Poste Italiane S.p.A. are responsible for the preparation of the non-financial statement pursuant to Legislative Decree 30 December 2016, n. 254.

We verified the approval by the Directors of the non-financial statement.

Poste Italiane Group Reports and attestations

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INDEPENDENT AUDITOR'S REPORT PURSUANT TO ARTICLE 14 OF LEGISLATIVE DECREE N. 39 OF JANUARY 27, 2010 AND ARTICLE 10 OF THE FU REGULATION 537/2014

To the Shareholders of Poste Italiane S.p.A.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion

We have audited the financial statements of Poste Italiane S.p.A. (the "Company"), which comprise the statement of financial position as at December 31, 2023, statement of profit or loss, statement of comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended and notes to the financial statements, including material accounting policy information.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at December 31, 2023, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree n. 38/05.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements applicable under Italian law to the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Torino Treviso Udine Verona

• ede Legale: Va Tortora, 25 2014 Milano | Capitale: Euro 10.328.220,00 i v.
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Audit procedures performed

The main procedures carried out as part of our audit work, also with the support of Deloitte network experts, have included the following:

• · identification and verification of the operational effectiveness of the key controls carried out by the Company over the impairment testing process;
• · obtaining an understanding of the methods and assumptions adopted by the Company to carry out the impairment test;
• · verification of the consistency of the methodological approach adopted by the Company, with particular reference to the identification of the CGU and the determination of its recoverable amount, with respect to the requirements of the accounting policy IAS 36 "Impairment of Assets";
• · analysis of the reasonableness, also by obtaining information from the Company, of the principal assumptions adopted to estimate future cash flows expected by the CGU, also taking into account the uncertainties related to the current macroeconomic environment and the key variables used in the valuation model adopted for the impairment test;
• · verification of the logical and mathematical correctness of the determination of the cash flows in the context of the impairment test mentioned above, as well as of the overall reasonableness of the calculation of the weighted average cost of capital ("WACC") and of the consistency of the assumptions related to the "terminal value", that is the value that represents the ability of the company to generate cash flows, estimated beyond the explicit forecast period of the 2024-2028 Strategic Plan;
• · review of the sensitivity analysis prepared by the Company;
• verification of the completeness and compliance of the disclosures provided by the Company in the financial statements with respect to the applicable international financial reporting standards.

Responsibilities of the Directors and the Board of Statutory Auditors for the Financial Statements

The Directors are responsible for the preparation of financial statements that give a true and fair view in accordance with International Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 9 of Italian Legislative Decree n. 38/05 and, within the terms established by law, for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they have identified the existence of the conditions for the liquidation of the Company or the termination of the operations or have no realistic alternatives to such choices.

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The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, the Company's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing (ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with International Standards on Auditing (ISA Italia), we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit. in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
• · Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance, identified at an appropriate level as required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence applicable in Italy, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and. where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report.

Other information communicated pursuant to art. 10 of the EU Regulation 537/2014

The shareholders' Meeting of Poste Italiane S.p.A. has appointed us on May 28, 2019 as auditors of the Company for the years from December 31, 2020 to December 31, 2028.

We declare that we have not provided prohibited non-audit services referred to in art. 5 (1) of EU Regulation 537/2014 and that we have remained independent of the Company in conducting the audit.

We confirm that the opinion on the financial statements expressed in this report is consistent with the additional report to the Board of Statutory Auditors, in it's role of Audit Committee, referred to in art. 11 of the said Regulation.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Opinion on the compliance with the provisions of the Delegated Regulation (EU) 2019/815

The Directors of Poste Italiane S.p.A. are responsible for the provisions of the European Commission Delegated Regulation (EU) 2019/815 with regulatory technical standards on the specification of the single electronic reporting format (ESEF - European Single Electronic Format) (hereinafter referred to as the "Delegated Regulation") to the financial statements as at December 31, 2023, to be included in the annual financial report.

We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 700B in order to express an opinion on the compliance of the financial statements with the provisions of the Delegated Regulation.

In our opinion, the financial statements as at December 31, 2023 have been prepared in XHTML format in accordance with the provisions of the Delegated Regulation.

Opinion pursuant to art. 14, paragraph 2 (e), of Legislative Decree 39/10 and art. 123-bis, paragraph 4, of Legislative Decree 58/98

The Directors of Poste Italiane S.p.A. are responsible for the preparation of the report on operations and the report on corporate governance and ownership structure of Poste Italiane S.p.A. as at December 31, 2023, including their consistency with the related financial statements and their compliance with the law.

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We have carried out the procedures set forth in the Auditing Standard (SA Italia) n. 720B in order to express an opinion on the consistency of the report on operations and some specific information contained in the report on corporate governance and ownership structure set forth in art. 123-bis, n. 4 of Legislative Decree 58/98 with the financial statements of Poste Italiane S.p.A. as at December 31, 2023 and on their compliance with the law, as well as to make a statement about any material misstatement.

In our opinion, the above-mentioned report on operations and some specific information contained in the report on corporate governance and ownership structure are consistent with the financial statements of Poste Italiane S.p.A. as at December 31, 2023 and are prepared in accordance with the law.

With reference to the statement referred to in art. 14, paragraph 2 (e), of Legislative Decree 39/10, made on the basis of the knowledge and understanding of the Company and of the related context acquired during the audit, we have nothing to report.

DELOITTE & TOUCHE S.p.A.

Signed by Marco Miccoli Partner

Rome, Italy April 4, 2024

This report has been translated into the English language solely for the convenience of international readers. Accordingly, only the original text in Italian language is authoritative.

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INDEPENDENT AUDITOR'S REPORT on the consistency of the data contained in the separate report OF BANCOPOSTA'S RING-FENCED CAPITAL WITH THOSE REPORTED IN THE COMPANY'S FINANCIAL STATEMENTS

To the Board of Directors of Poste Italiane S.p.A.

As entity in charge of the statutory audit of the accounts of Poste Italiane S.p.A. (the "Company"), we have undertaken a limited assurance engagement of the accompanying separate report of BancoPosta's Ring-fenced Capital - RFC, which comprise the statement of financial position as at December 31, 2023, the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes to the financial statements ("Separate Report"), attached to the Company's financial statements in accordance with the provisions of Section 8 of BancoPosta's RFC Regulation, in order to verify the consistency between the data contained in the Separate Report and those reported in the Company's financial statements at December 31, 2023.

Directors' Responsibility

The Directors of Poste Italiane S.p.A. are responsible for the preparation of the Separate Report in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of national regulations issued pursuant to art. 43 of Italian Legislative Decree no. 136/2015 and the provisions of art. 2447-septies paragraph 2 of the Italian Civil Code. The Directors are also responsible for such internal control as they determine is necessary to enable the preparation of the Separate Report that is free from material misstatements, whether due to fraud or error.

Independence and quality control policies

We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior.

Our firm applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

• ede Legale: Va Tortora, 25 2014 Milano | Capitale: Euro 10.328.220,00 i v.
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Auditor's Responsibility

Our responsibility is to express a conclusion on the Separate Report based on the procedures performed. We conducted our engagement in accordance with International Standards on Assurance Engagements -Assurance Enaggements other than Audits or Reviews of Historical Information ("ISAE 3000 revised") issued by International Auditing and Assurance Standards Board for limited assurance engagements. This standard requires that we plan and perform the review to obtain limited assurance as to whether the Separate Report is free of material misstatements.

The procedures performed have been based on our professional judgment and have included inquiries primarily of persons responsible for the preparation of the Separate Report, analysis of documents, recalculations, comparisons, reconciliations with the accounting records and other procedures to obtain supporting evidence.

In accordance with the above criteria, we have performed the necessary procedures in order to achieve the objectives of the mandate pointed out in the first paragraph. In detail, we have performed the following procedures:

• · understanding, through interviews with the Management, of the criteria adopted by the Company for the preparation of the Separate Report and verification of their consistency with the provisions of the Bank of Italy Circular no. 262 of December 22, 2005 as amended and the provisions of art. 2447septies paragraph 2 of the Civil Code;
• · obtaining the reconciliation arranged by the Company between the data reported in the Company's financial statements and the data reported in the Separate Report;
• · understanding of the methodology used by the Company for sharing common costs;
• · verification that the data included in the Separate Report comply with the accounting records and the criteria adopted by the Company for the preparation of the Separate Report;
• · verification that the data included in the Separate Report are consistent with the reconciliation prepared by the Company and with the methodology applied for sharing common costs;
• · verification of the application of the accounting policies described by the Directors in the notes to the financial statements of the Separate Report;
• · obtaining the representation letter, signed by the legal representative of the Company, with reference to the correctness and completeness of the information contained in the Separate Report and those provided to us for the purpose of carrying out our statutory audit.

The procedures performed are less in extent than for a reasonable assurance engagement conducted in accordance with ISAE 3000 revised and, consequently, do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in a reasonable assurance engagement.

Poste Italiane Group Reports and attestations

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INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO ARTICLE 3. PARAGRAPH 10 OF LEGISLATIVE DECREE No. 254 OF DECEMBER 30, 2016, AND ART. 5 OF CONSOB REGULATION N. 20267/2018

To the Board of Directors of Poste Italiane S.p.A.

Pursuant to article 3, paragraph 10, of the Legislative Decree no. 254 of December 30, 2016 (hereinafter "Decree") and to article 5, paragraph 1, letter g) of the CONSOB Regulation n. 20267/2018, we have carried out a limited assurance engagement on the Consolidated Non-Financial Statement of Poste Italiane S.p.A. and its subsidiaries (hereinafter "Poste Italiane Group" or "Group") as of December 31, 2023 prepared on the basis of art. 4 of the Decree, presented in the specific section of the report on operations and approved by the Board of Directors on March 19, 2024 (hereinafter "NFS"),

Our limited assurance engagement does not extend to the information required by art. 8 of the European Regulation 2020/852 included in the paragraph "The European Taxonomy Regulation".

Responsibility of the Directors and the Board of Statutory Auditors for the NFS

The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of the Decree and with "Global Reporting Initiative Sustainability Reporting Standards" defined by GRI - Global Reporting Initiative (hereinafter "GRI Standards"), which they have identified as reporting framework.

The Directors are also responsible, within the terms established by law, for such internal control as they determine is necessary to enable the preparation of NFS that is free from material misstatement, whether due to fraud or error.

The Directors are moreover responsible for defining the contents of the NFS, within the topics specified in article 3, paragraph 1, of the Decree, taking into account the activities and characteristics of the Group, and to the extent necessary in order to ensure the understanding of the Group's activities, its trends, performance and the related impacts.

Finally, the Directors are responsible for defining the business management model and the organisation of the Group's activities as well as, with reference to the topics detected and reported in the NFS, for the policies pursued by the Group and for identifying and managing the risks generated or undertaken by the Group.

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The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, the compliance with the provisions set out in the Decree.

Auditor's Independence and quality control

We have complied with the independence and other ethical requirements of the International Code of Fthics for Professional Accountants (including International Independence Standards) (IFSBA Code) issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

During the year covered by this assurance engagement, our auditing firm applied International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintained a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor's responsibility

Our responsibility is to express our conclusion based on the procedures performed about the compliance of the NFS with the Decree and the GRI Standards. We conducted our work in accordance with the criteria established in the "International Standard on Assurance Engagements ISAE 3000 (Revised) – Assurance Engagements Other than Audits or Reviews of Historical Information" (hereinafter "ISAE 3000 Revised"), issued by the International Auditing and Assurance Standards Board (IAASB) for limited assurance engagements. The standard requires that we plan and perform the engagement to obtain limited assurance whether the NFS is free from material misstatement. Therefore, the procedures performed in a limited assurance engagement are less than those performed in a reasonable assurance engagement in accordance with ISAE 3000 Revised, and, therefore, do not enable us to obtain assurance that we would become aware of all significant matters and events that might be identified in a reasonable assurance engagement.

The procedures performed on NFS are based on our professional judgement and included inquiries, primarily with company personnel responsible for the preparation of information included in the NFS, analysis of documents, recalculations and other procedures aimed to obtain evidence as appropriate.

Specifically, we carried out the following procedures:

• 1. analysis of relevant topics with reference to the Group's activities and characteristics disclosed in the NFS, in order to assess the reasonableness of the selection process in place in light of the provisions of art.3 of the Decree and taking into account the adopted reporting standard;
• 1. analysis and assessment of the identification criteria of the consolidation area, in order to assess its compliance with the Decree;
• 1. comparison between the financial data and information included in the NFS with those included in the consolidated financial statements of the Poste Italiane Group;

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1. understanding of the following matters:

2. · business management model of the Group's activities, with reference to the management of the topics specified by article 3 of the Decree;

3. · policies adopted by the entity in connection with the topics specified by article 3 of the Decree, achieved results and related fundamental performance indicators;
4. · main risks, generated and/or undertaken, in connection with the topics specified by article 3 of the Decree.

Moreover, with reference to these matters, we carried out a comparison with the information contained in the NFS and the verifications described in the subsequent point 5, letter a) of this report;

1. understanding of the processes underlying the origination, recording and management of qualitative and quantitative material information included in the NFS.

In particular, we carried out interviews and discussions with the management of Poste Italiane S.p.A. and with the employees of the main entities of the Group and we carried out limited documentary verifications, in order to gather information about the processes and procedures which support the collection, aggregation, elaboration and transmittal of non-financial data and information to the department responsible for the preparation of the NFS.

In addition, for material information, taking into consideration the Group's activities and characteristics:

• at the parent company and subsidiaries level:
  • a) with regards to qualitative information included in the NFS, and specifically with reference to the business management model, policies applied and main risks, we carried out interviews and gathered supporting documentation in order to verify its consistency with the available evidence;
  • b) with regards to quantitative information, we carried out both analytical procedures and limited verifications in order to ensure, on a sample basis, the correct aggregation of data.
• for the following entities, Poste Italiane S.p.A., Poste Vita S.p.A. and SDA Express Courier S.p.A., which we selected based on their activities and their contribution to the performance indicators at the consolidated level, we carried out site visits and remote meetings, during which we have met their management and have gathered supporting documentation with reference to the correct application of procedures and calculation methods used for the indicators.

Conclusion

Based on the work performed, nothing has come to our attention that causes us to believe that the NFS of the Poste Italiane Group as of December 31, 2023 is not prepared, in all material respects, in accordance with article 3 and 4 of the Decree and the GRI Standards.

Poste Italiane Group Reports and attestations

Poste Italiane Group Reports and attestations