INTERIM REPORT AT 30 JUNE 2022

REPORT ON OPERATIONS AT 30 JUNE 20221
1. INTRODUCTION 2
2. HIGHLIGHTS3
2022 OUTCOME OF POSTE ITALIANE'S VALUE CREATION PROCESS 3
3. BUSINESS MODEL5
POSTE ITALIANE'S OWNERSHIP AND ORGANISATIONAL STRUCTURE 5
POSTE ITALIANE'S CORPORATE GOVERNANCE 10
GROUP STRUCTURE 12
OMNI-CHANNEL APPROACH AND GROUP OPERATING SEGMENTS 16
OMNI-CHANNEL STRATEGY 16
MAIL, PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT 24
FINANCIAL SERVICES BUSINESS UNIT 29
INSURANCE SERVICES STRATEGIC BUSINESS UNIT 37
PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT 42
4. RISK MANAGEMENT47
POSTE ITALIANE'S INTEGRATED INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM 47
RISK MANAGEMENT MODEL AND RISK ANALYSIS 47
COVID-19 RISK MANAGEMENT AT POSTE ITALIANE 48
5. CREATING VALUE 53
PERFORMANCE OF POSTE ITALIANE SHARES 53
IMPACTS ARISING FROM THE PANDEMIC AND THE RUSSIAN-UKRAINIAN CONFLICT 55
GROUP OPERATING RESULTS 56
SUMMARY OF OPERATING RESULTS BY STRATEGIC BUSINESS UNIT 62
MAIL, PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT 64
FINANCIAL SERVICES STRATEGIC BUSINESS UNIT 70
INSURANCE SERVICES STRATEGIC BUSINESS UNIT 77
PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT 85
OMNI-CHANNEL SERVICE, DIGITAL TRANSFORMATION AND MAIN KPIs 90
GROUP FINANCIAL POSITION AND CASH FLOW 93
6. OUTLOOK 100
7. OTHER INFORMATION102
EVENTS AFTER 30 JUNE 2022 102
SIGNIFICANT TRANSACTIONS 102
INDUSTRIAL RELATIONS 102
WELFARE – DIVERSITY AND INCLUSION 104
CORPORATE UNIVERSITY 106
8. APPENDIX107
RECLASSIFIED STATEMENT OF PROFIT OR LOSS AND STATEMENT OF FINANCIAL POSITION 107
ALTERNATIVE PERFORMANCE INDICATORS 111

9. GLOSSARY117
CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS AT 30 JUNE 2022 126
1. INTRODUCTION 127
2. BASIS OF PRESENTATION, METHODOLOGIES AND ACCOUNTING STANDARDS APPLIED 127
3. SIGNIFICANT EVENTS DURING THE PERIOD 137
4. POSTE ITALIANE GROUP FINANCIAL STATEMENTS AT 30 JUNE 2022140
5. RISK MANAGEMENT191
6. FAIR VALUE OF FINANCIAL INSTRUMENTS196
7. PROCEEDINGS IN PROGRESS AND MAIN RELATIONS WITH AUTHORITIES 199
8. MATERIAL NON-RECURRING EVENTS AND/OR TRANSACTIONS203
9. EXCEPTIONAL AND/OR UNUSUAL TRANSACTIONS203
10. SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD 203
11. ADDITIONAL INFORMATION204
12.ATTESTATION OF THE MANAGER RESPONSIBLE FOR FINANCIAL REPORTING	AND
INDEPENDENT AUDITORS' REPORT 213

REPORT ON OPERATIONS AT 30 JUNE 2022

REPORT ON OPERATIONS AT 30 JUNE 2022

Poste Italiane Group Report on operations at 30 June 2022

1. INTRODUCTION

The Interim Report at 30 June 2022 of the Poste Italiane Group approved by the Board of Directors on 27 July 2022, which authorised its public disclosure, also pursuant to IAS 10 includes the Report on Operations at 30 June 2022 and the Condensed consolidated half-year financial statements.

The first half of 2022 was still characterised by the Covid-19 health emergency, caused by an increase in infections due to the spread of the Omicron variants. Furthermore, the international macroeconomic scenario during the period was heavily affected by changes in the Russia-Ukraine crisis, which saw, in February 2022, the outbreak of war between the two countries as Russia invaded Ukraine.

For an explanation of the impacts of the pandemic and the actions implemented by the Group to address them, please refer to the information described hereafter in this Report on Operations.

The information in this half-year financial report takes into account the recommendations issued by the ESMA in 2021 regarding the effects of the ongoing pandemic on the Group, as well as the guidelines and recommendations issued in the first half of 2022 by the European regulatory and supervisory bodies¹ on the impacts of the Russia-Ukraine conflict on the Group's business, financial position, results of operation and future prospects.

In this regard, please refer to the section "Impacts of the pandemic and the Russia-Ukraine conflict", in the "Outlook" chapter of this Report on Operations, and to the Condensed Consolidated half-year Financial Statements at 30 June 2022, chapter "Significant events during the period".

Moreover, in the first half of 2022, the company Poste Welfare Servizi, previously allocated to the Insurance Services Strategic Business Unit, is represented in the Mail, Parcels and Distribution Strategic Business Unit. The comparable financial figures have therefore been reclassified to take account of this organisational change.

Lastly, it is noted that amounts shown in millions of euros have been rounded, with the result that the sum of the rounded figures does not always tally with the rounded total.

The following infographics are used in this document:

to indicate the possibility of consulting the definition of the content in the glossary found in Chapter 9 using a link;

to indicate the possibility of returning to the beginning of the chapter or the general index with a link.

¹ Public statement ESMA32-63-1277 "Implications of Russia's invasion of Ukraine on half-yearly financial reports" dated 13 May 2022 and CONSOB Notice of attention no. 3/22 dated 19 May 2022.

2. HIGHLIGHTS

2022 OUTCOME OF POSTE ITALIANE'S VALUE CREATION PROCESS

During the first half of 2022, through significant investment in the six forms of capital on which the Company is based (financial, human, physical-structural, intellectual, social-relational and natural), the Poste Italiane value creation process has generated significant results for the Group with systemic value, consistent with the United Nations Sustainable Development Goals Framework.

3. BUSINESS MODEL

POSTE ITALIANE'S OWNERSHIP AND ORGANISATIONAL STRUCTURE POSTE ITALIANE'S CORPORATE GOVERNANCE GROUP STRUCTURE OMNI-CHANNEL APPROACH AND GROUP OPERATING SEGMENTS

POSTE ITALIANE'S OWNERSHIP AND ORGANISATIONAL STRUCTURE

POSTE ITALIANE'S OWNERSHIP STRUCTURE

Poste Italiane has issued shares listed on the Mercato Telematico Azionario (Electronic Stock Exchange MTA) organised and managed by Borsa Italiana SpA as of 27 October 2015. At 30 June 2022, the Company is 29.26% owned by the Ministry of the Economy and Finance (MEF) and 35% owned by Cassa Depositi e Prestiti SpA (CDP), also controlled by the MEF. The remaining shares are held by institutional and retail investors. 31.1%² of shares held by Poste Italiane SpA institutional investors³ are held by investors who follow ESG criteria (Environment, Social, Governance) in their investment choices. The share capital of Poste Italiane SpA consists of 1,306,110,000 ordinary shares, of which 1,298,574,009 are outstanding at 30 June 2022 (7,535,991 treasury shares).

The Ordinary Shareholders' Meeting of 27 May 2022 authorised the Board of Directors of Poste Italiane to purchase and subsequently sell its own shares for a maximum of 2.6 million ordinary Company shares, with a maximum expenditure of up to € 40 million. The purchase of own shares was authorized over a period of eighteen months starting from the date of Meeting's resolution but no time limit was instead set for the sale of the own shares purchased. In the period between 30 May and 13 June 2022, Poste Italiane concluded its treasury share purchase programme, acquiring 2,600,000 treasury shares for a total value of around € 25.3 million.

² Source: Nasdaq Corporate Solutions.

³ Poste Italiane's institutional investors represent 23.6% of the share capital and 66.7% of the floating equity.

Floating equity profile

Geographical breakdown Institutional investors

POSTE ITALIANE'S ORGANISATIONAL STRUCTURE

In line with the strategic guidelines set out in the 24SI Plus Business Plan, the Group's activities are represented by four Strategic Business Units (also referred to as operating segments in the Poste Italiane Group's financial statements): Mail, Parcels and Distribution; Financial Services; Insurance Service and Payments and Mobile.

MAIL, PARCELS AND DISTRIBUTION

In addition to its mail and parcel handling and logistics activities, the SBU also includes those relating to the network of post offices, business salespeople and the corporate functions of Poste Italiane SpA, which also support the other sectors of the Group.

FINANCIAL

SERVICES

The SBU is engaged in the placement and distribution, by BancoPosta, of financial and insurance services such as current accounts, postal savings products (on behalf of Cassa Depositi e Prestiti), mutual funds, loans provided by partner banks and policies.

INSURANCE SERVICES

The SBU refers to activities involving the issuance of life and non-life insurance products.

PAYMENTS AND MOBILE

The SBU includes the activities of payment management,

electronic money services, mobile and fixed-line telephone services and Energy (electricity and gas) sales to end customers by PostePay SpA.

Below is the organisational structure of Poste Italiane:

The organisation of Poste Italiane SpA envisages business functions⁴ specialising in the main areas of offer 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.

With particular reference to Poste Italiane SpA corporate functions, the Corporate Affairs function's role is to guide and connect the corporate structure; moreover, in May 2020 the Head of Corporate Affairs was assigned the role and office of Co-General Manager.

In the first quarter of 2022, in the Human Resources and Organisation area, the Industrial Relations and Coordination of Local Human Resources function was established to guarantee the maximum efficiency and synergy of the relations with the Trade Unions and the management of local human resources.

With reference to the commercial channels, in the Private Markets, the local SEO (Small Economic Operator) sales professionals were divided into the Private Market Macro Area Commercial functions, by relevant geography, with the objective of facilitating the integration and development of synergies between the retail channel and the sales force dedicated to SEO customers. Furthermore, a commercial oversight was established for the management of partner channels and remote sales in the Business and Public Administration Market function.

⁴These are Mail, Communication and Logistics for mail, parcel and commercial communication services and Banca Posta as the placement intermediary for financial and insurance offerings. The other two business areas are covered by PostePay for the payments, telephony and energy offering and by Poste Vita Group for the insurance range.

POSTE ITALIANE'S CORPORATE GOVERNANCE

MANAGEMENT AND SUPERVISORY BODIES

The Board of Directors was elected by the Ordinary General Meeting held on 15 May 2020 to serve for a period of three years, and will remain in office until the Annual General Meeting's approval of the financial statements for the year ended 31 December 2022. Following the Board of Directors' resolution of 10 June 2020, the Co-General Manager and Head of Corporate Affairs participates in Board meetings without voting rights.
Committee members were appointed by the Board of Directors' meeting of 15 May 2020. At its meeting on 26/01/2022, and in order to align the Board Committees with the Bank of Italy's supervisory provisions (Bank of Italy Circular No. 285 of 17/12/2013 – 35th update) on corporate governance, the Board of Directors appointed: Giovanni Azzone as Chairman and Bernardo De Stasio as a member of the Appointments and Corporate Governance Committee. Consequently, with effect from that date, the composition of the Appointments and Corporate Governance Committee is as follows: Giovanni Azzone (Chair), Bernardo De Stasio (member), Mimi Kung (member).

1. The Board of Statutory Auditors was elected by the Ordinary General Meeting of 27 May 2022 to serve for a period of three years and will remain in office until the General Meeting's approval of the financial statements for the year ended 31 December 2024. Until 27 May 2022, the Board of Statutory Auditors was formed as follows: Mauro Lonardo, Chair; Luigi Borrè, Standing Auditor; Maria Rosa, Adiutori, Statutory Auditor; Alberto De Nigro, Alternate Auditor;
Maria Francesca Talamonti, Alternate Auditor; Antonio Santi, Alternate Auditor.
1. The Supervisory Board was appointed by the Board of Directors' meeting of 30 July 2019 for a three-year term and will remain in office until 30 July 2022.
1. The only internal member, Head of Poste Italiane SpA's Internal Auditing.
1. Assigned by the Court of Auditors with effect from 1 January 2020.
1. Company appointed to audit the accounts for the financial years 2020-2028 by resolution of the Ordinary General Meeting of 28 May 2019. Deloitte&Touche has been appointed for the entire Group.

GROUP STRUCTURE

Poste Italiane's Business Model is implemented through the Group's organisational structure and its companies, which contribute to the creation of value over time through the activities and services they provide. At 30 June 2022, the Group held, directly and indirectly, equity investments in 40 companies and consortia, of which 25 are consolidated on a line-byline basis, 3 are subsidiaries and valued using the equity method, 6 are associates and valued using the equity method and 6 represent minority stakes.

-

For the description of the activities of the Group companies, please see the Annual Financial Report 2021 and the Interim Report on Operations at 31 March 2022, section "Group Structure" in chapter 3 "Business Model".

MAIN CORPORATE ACTIONS PERFORMED

PAYMENTS AND MOBILE	Tink AB	On 23 June 2021, PostePay SpA's Board of Directors approved the signing of binding agreements for the sale of the interest held by PostePay SpA in Tink AB, a fintech operator specialising in open banking technology solutions, , for a consideration of approximately €77 million, as part of the announced sale of 100% of Tink AB to Visa Open Connect Limited, a Visa Group company. The transaction was agreed on the basis of an enterprise value valuation of Tink AB of €1.8 billion. It is recalled that PostePay SpA's total investment in Tink amounted to €22.1 million, representing a 4.7% interest in the company on a fully diluted basis.
		The Poste Italiane Group will continue to collaborate with Tink through the existing partnership focused on expanding the Group's digital service offering.
		The closing of the transaction was completed on 10 March 2022 following approval by the competent authorities.
	LIS Holding SpA	On 25 February 2022 PostePay signed with IGT Lottery SpA ("IGT") a binding agreement for the acquisition of 100% of LIS Holding SpA (together with the subsidiary LIS Pay SpA, "LIS") at a price of € 700 million determined on the basis of an Enterprise Value of € 630 million and available net cash of € 70 million. Acquisition of 100% of the company LIS LIS offers a wide range of services through the Holding SpA technological management of a platform of affiliated merchants, comprising 54,000 non-specialised points of sale, of which around 33,000 are tobacconists, located across Italy. The LIS platform supports and enables the delivery of services - mainly related to collections and payments - at affiliated merchants: (i) payments (postal orders, MAV, PagoPA, etc.); (ii) Collections for prepaid card top-ups (mainly PostePay); (iii) Other types of collections for services (directly or on behalf of third parties): phone top-ups, digital TV services, as well as processing services related to mobility of tax issue, or the issue of tax stamps; (iv) Services for retailers and businesses on the aforementioned technological platform via a network of proprietary terminals. This transaction consolidates PostePay's growth also in the proximity payments market and bolsters its acquiring services and SME

offering, in keeping with the multichannel strategy enshrined in the "24SI Plus" plan.

The boards of directors of Poste Italiane and PostePay have approved the transaction which remains subject to the usual closing conditions.

In this regard, it should be noted that on 6 June 2022, the Measure (No. 30157 of 17 May 2022) was published, in which the Autorità Garante della Concorrenza e del Mercato ("AGCM" – the Antitrust Authority) authorised the transaction in question, not deeming it to result in the establishment or strengthening of a dominant position within the meaning of Law 287/90.

On 13 July 2022, the Bank of Italy authorised the acquisition transaction.

The closing is expected within the third quarter of 2022.

Other transactions

On 25 June 2021, Poste Vita and BancoPosta Fondi SGR signed definitive agreements for the acquisition of 40% of the share capital, of which 24.50% of shares with voting rights, of Eurizon Capital Real Asset SGR SpA ("ECRA"), a company specialising in investments in support of the real economy controlled by Eurizon.

At the same time as the subscription of the capital increase, the portfolio management mandate was signed by the parties; this regards the transfer to ECRA of the management of a number of alternative investment funds, thus accessing a global platform which will make it possible to develop an integrated management model along the whole life cycle of the investment. The transaction was closed on 31 January 2022, once the regulatory authorities had given their approval. We can note that ECRA continues to be controlled and consolidated by Eurizon.

On 18 March 2022, Poste Italiane signed a binding agreement with Opus Srl ("Opus") – entirely held by the Marconi family – and the private equity operator Siparex for the acquisition of a majority stake in Plurima SpA

Plurima: acquired majority stake

("Plurima") for a consideration based on a total enterprise value of the Company of € 130 million.

The closing took place on 2 May 2022, when the necessary authorisations were obtained from the Autorità Garante della Concorrenza e del Mercato ("AGCM" – the Antitrust Authority) received on 21 April 2022. The transaction took place through Poste Welfare Servizi S.r.l. ("PWS"), a company wholly-owned by Poste Italiane, and financed with the cash resources available.

With the conclusion of the transaction PWS holds 70% of the share capital of Plurima Bidco Srl (Bidco) which in turn holds 100% of Plurima.

Plurima is a leader in the Italian market for hospital logistics and document custody and management services for public and private hospitals. It operates through 41 logistics facilities and a fleet of around 300 vehicles.

In light of the experience gained by PWS in the health sector, it will be possible to further strengthen its role as a centre of excellence for the Poste Italiane Group in the healthcare sector. The operation is aimed at developing the skills developed by Poste Italiane through the delivery of services via the Vaccinations Platform and creating synergies with the health services provided by Plurima.

Furthermore, for the purpose of simplifying the control structure of the Poste Italiane Group, on 20 June 2022, the reverse merger plan of Bidco into Plurima was approved by the boards of directors of the two companies; the transaction will consequently be submitted to their shareholders' meetings. The transaction will illustrate its effectiveness as of 1 January 2023.

On 8 April 2022 Poste Italiane, with an overall investment of € 25 million, acquired 2.30% (2.15% on a fully diluted basis) of the share capital of Scalapay Limited ("Scalapay"), a company operating in several European countries in the Buy Now Pay Later ("BNPL") market on online and physical channels, allowing end customers to pay for a product/service in three interest-free monthly payments, against a fee paid by the merchants.

On 24 June 2022, the BoD of Poste Italiane approved the promotion, in consultation with several shareholders of Sourcesense SpA ("Sourcesense"), of a cash takeover bid ("OPA") for all of Sourcesense's shares and warrants.

Sourcesense is a company with shares traded on the multilateral trading system known as Euronext Growth Milan ("EGM") that operates in the IT sector in Italy and Great Britain with high expertise in the development of cloud-native solutions, based on open source technology.

In line with the objectives of the 2024 Sustain & Innovate Industrial Plan, the operation will allow Poste Italiane to strengthen its capacity for the internal development of applications based on cloud and open source technology, significantly increasing the level of internalisation of activities and evolving towards a "product factory" model, while limiting the use of external personnel for specialist technology support and non-core activities.

Following the completion of the transaction, aimed at the delisting of the shares and warrants, it is expected that Poste Italiane will hold a controlling interest in Sourcesense of 70%, and that its current controlling shareholders (acting in collaboration with Poste Italiane in launching the bids) will retain a minority stake of 30%.

The transaction involves a consideration offered for each share of € 4.20 (corresponding to a premium of 24.0% in relation to the weighted average daily official prices of Borsa Italiana for the past month) and a consideration offered for each warrant of € 0.78 (corresponding to a premium of 75.4% in relation to the weighted

Sourcesense: promotion of a cash takeover bid for all shares and warrants

average daily official prices of Borsa Italiana for the past month). The transaction is expected to be concluded by the end of 2022.

Intra-group transactions

On 26 January 2022 the Board of Directors of Poste Vita approved the transfer to Poste Italiane of 100% of the shared in Poste Welfare Servizi, in order to implement a process to reorganise the Poste Italiane Group to strengthen the role of Poste Welfare Servizi as a centre of excellence in the healthcare sector. The operation is aimed at integrating the consolidated skills developed by Poste Welfare Servizi in the health sector with those recently developed by the Parent Company through the delivery of services via the Vaccinations Platform and the Poste Medical Centre operating at the

Group's head offices at Viale Europa and providing services to employees of the Poste Italiane Group. The operation took effect from the filing at the Companies Register of the deed of sale signed on 24 February 2022.

On 26 January 2022 MFM Holding Ltd (Moneyfarm) launched a capital increase for an amount of approximately € 53 million, subscribed for approximately € 44 million by M&G plc, a listed asset manager based in the UK, and pro quota by Poste Italiane with an investment of approximately € 9 million, in order not to dilute its stake of approximately 14%.

On 24 June 2022, the BoD of Poste Italiane and the General Meeting of Shareholders of PSIA S.r.l. ("PSIA") approved the merger by incorporation of PSIA into Poste Italiane. The transaction, which provides for application of the simplifications envisaged by the regulations for the merger of wholly owned companies, will take effect from the date of the latest registration required by Art. 2504 of the Italian Civil Code in the Companies Register. The merger is part of a company reorganisation that will allow Poste Italiane to directly hold shares in the listed company NEXI S.p.A, thus simplifying the structure of the Group.

As part of the process of streamlining the efficiency of the Poste Group's information communication technology processes, by centralising the management of the subsidiaries' information systems at the Parent Company, on 23 June 2022, the Board of Directors of BancoPosta Fondi SGR approved the sale of its ICT management business unit to Poste Italiane. The transaction, which was previously notified to the Bank of Italy, pursuant to Title IV, Chapter III - Section II, Article 1 of the collective asset management regulations, will be effective as of 1 October 2022.

The shareholders' equity of Poste Insurance Broker as at 31 December 2021 was €1,118,800 and reflected the loss for the year and that of previous years, falling into the situation provided for by art. 2482 bis of the Italian Civil Code⁵ (losses in excess of one third of the share capital). The Board of Directors of the Sole Shareholder Poste Assicura, at the meeting on 22 February 2022, approved the proposal to strengthen Poste Insurance Broker's capital by € 900 thousand, to cover the ascertained losses while at the same time strengthening the subsidiary's capital and its ability to continue as a going concern.

OMNI-CHANNEL APPROACH AND GROUP OPERATING SEGMENTS

OMNI-CHANNEL STRATEGY MAIL, PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT FINANCIAL SERVICES STRATEGIC BUSINESS UNIT INSURANCE SERVICES STRATEGIC BUSINESS UNIT PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT

OMNI-CHANNEL STRATEGY

The digital transformation undertaken by Poste Italiane in recent years has involved not only its own offerings, but also the distribution model which, through an omni-channel strategy, guarantees the Company the possibility to provide services that are in step with the needs of its customers.

The 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

⁵Paragraph 1 of article 2482 bis of the Italian Civil Code states that "if the share capital has fallen by over one third due to losses, directors must convene the shareholders' meeting without delay for the appropriate measures". Paragraph 2 of article 2482 bis of the Italian Civil Code states that "the meeting must be the subject of a Directors' report on the financial situation of the company, including the observations of the Board of Statutory Auditors or the independent auditor".

innovation to create new personalised products and services and opening up additional channels of communication with its customers.

The Group's integrated omni-channel platform provides customer care and other services through three channels:

the physical network: the network of Post Offices, the specialist commercial service for business clients and the delivery logistic network for the delivery of mail and parcels;
digital infrastructure and remote contact points: all of the Group's digital properties and its Contact Centre, able to serve the entire Italian population;
physical third-party networks: around 62,000 retail outlets and the result of commercial partnership agreements for the marketing of Group products and services.

The Group's omni-channel platform is shown below:

PROPRIETARY PHYSICAL NETWORK OF POST OFFICES

The post office network is governed by the Private Markets function, which is divided into regional Areas, Branches and Post Offices and serves the entire country.

MACRO AREAS POST OFFICE NETWORK

GEOGRAPHICAL DISTRIBUTION OF POST OFFICES AND BRANCHES

In the last quarter of 2021, the Corner Project 2.0⁶ was launched on a pilot scheme involving 100 Post Offices, of which 83 with queues dedicated to car civil liability products and Telephony/Postepay Cards integrated into the New Queue Manager. As part of this project, on 30 June 2022, 969 so-called PuntoPoste Casa&Famiglia Corners were set up (of which 456 corners and 513 lowered workstations). In addition, to promote the marketing of these products, a New Queue Manager with dedicated queues is active in over 400 post offices of the Punto Poste Casa e Famiglia network.

Furthermore, with a view to optimising the process of providing services and the offer, the Company has upgraded the network of Hospitality Operators with the aim of improving customer experience and a pilot has been launched for the SRC⁷ (Specialist Remote Consultant) project.

Lastly, from March 2022, with the aim of seizing the synergies between post offices and the sales force dedicated to Small Economic Operators (SEOs), the relative local sales professionals were divided into the Macro Area functions.

The SEO project aims to create synergies between the service models dedicated to retail customers and the one aimed at the target of self-employed professionals and small businesses, by providing the latter with the reach of the Poste Italiane network. In this context, it will be possible to seize the project changes dedicated to post offices, the range of products and the omni-channel service model (including the synergies being developed with the third-party physical network).

The current sales network dedicated to self-employed professionals and small businesses is formed of salespeople specialised in the financial sector (around 440 people) and the mail and parcels sector (around 170 people), coordinated by a team of managers (around 30 people).

With reference to the actions implemented by the Company to protect personnel and customers from the Covid-19 pandemic, see Chapter 4 "Risk Management".

PHYSICAL NETWORK - BUSINESS AND PUBLIC ADMINISTRATION

The Group's commercial presence and the sale of products and services to businesses and the central and local public administration is provided by the Business and Public Administration function of Poste Italiane.

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

3 Sales Macro Areas (Lombardy North West, Central North and North East, Central South), with exclusive commercial responsibility for mail and communication revenue and commercial support for the specialist sales force;
2 Sales areas dedicated to the commercial management of products/services of logistics and parcels and specialised by industry:
- Industry 1: Health&Beauty, Electronics and IT, Other Sectors;
- Industry 2: Food&Grocery&Pet, Homeliving&Fashion, Platform&Solution Players);
1 Commercial area specialising in the offer of financial and insurance products for large business customers and

⁶ The "Punto Poste Casa e Famiglia" Project, extended across the core network (1,252 high-footfall post offices), involves an evolution of the former Postepay Corners towards a model dedicated to the marketing of products and services with a significant customer service component (Fibre, Energy, Motor Liability).

⁷ The new figure of Specialist Remote Consultant was created with the aim of equipping the network of specialists (SFC/SMC/PREMIUM) present in the post offices with an alternative channel of remote consultancy through which to reach target customers, with a high digital inclination and the use of online tools.

Public Administration;

1 Commercial area for Central and Local Public Administration related to Metropolitan Regions and Cities;
1 Commercial area devoted to the commercial management of partnerships with third parties and remote sales (from February 2022).

Macro Areas Business and Public Administration

THE LOGISTICS NETWORK

The Group's mail and parcel services are provided through two integrated and synergistic logistics networks: the postal logistics network for the management of mail, now evolved also to allow the management of small parcels and the parcel logistics network able to handle all types of parcel.

The integration between the two networks was strengthened by increasing the interchange of small parcel volumes ( carriable parcels, i.e. under 5 kilos), using cost-effectiveness as the discriminating factor. The delivery of these products in Italy can be carried out indistinctly by the postal and parcel logistics network according to a dynamic approach, aimed at maximising efficiency for each area.

In addition to the two existing delivery networks (letter carriers and SDA couriers), a "last mile" network was added in 2020, operated by MLK Deliveries and focused mainly on parcel deliveries with value-added services (Same Day Delivery and Scheduled Delivery). With the acquisition of the Nexive Group during the first quarter of 2021 and the corporate reorganisation carried out in the subsequent months, an additional delivery network was added consisting of Nexive's current external delivery partners. As of 1 October 2021 this network is managed by Nexive Network, having a role of an operating company. It will increasingly focus on the delivery of packages and mail hand-delivered to the customer and not through the "letterbox".

THE LOGISTICS NETWORK - POSTAL LOGISTICS NETWORK ACTIVITIES

The postal logistics network accepts, sorts and delivers mail products and small parcels (carriable parcels). The following chart provides an overview of the postal logistics network value chain and the main quantitative drivers.

The organisational model for the postal logistics network consists of 6 Logistics Macro Areas which, coordinated centrally, internally 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.

The territorial coverage model is shown below:

THE LOGISTICS NETWORK - PARCEL LOGISTICS NETWORK ACTIVITIES

Large or non-carriable parcels and express courier products are delivered via the network of the subsidiaries, SDA Express Courier, MLK Deliveries and Nexive. The logistics flow is shown below.

DIGITAL INFRASTRUCTURE AND REMOTE CONTACT POINTS – WEB, APP AND CONTACT CENTRE

Outside of Post Offices, the Group's services are provided via digital channels (poste.it website and app), the use of which continued as in 2021 also during the first six months of 2022 with notable growth rates despite the gradual easing of restrictions linked to the health emergency.

The Group's Digital Properties are as follows:

During the period, the Group worked to strengthen the digital sales channel, optimising the "one click to buy" purchasing process and expanding the range of products and services that can be purchased directly online through digital properties.

The Poste Italiane digital web and app channels provide access to online services for 35.6 million retail users (31 million at 30 June 2021) and operate as both direct sales and after-sales channels. The daily average of web and app users for

the first half of 2022 was 5.6 million (4 million average daily users in the first half of 2021). Digital channel transactions also grew, and in the first half of 2022 amounted to 71.8 million for a transaction value of €18.7 billion (58.6 million transactions in the first half of 2021 for a transaction value of €15 billion).

of daily transactions in 1H 2022 were made on the new channels 36%

For more details on the performance of digital channels during the period, please refer to the paragraph "Omni-channel Approach, Digital Transformation and main KPIs". For further information

THIRD-PARTY PHYSICAL NETWORK

Third-party networks play a crucial role in the Group's omni-channel strategy. They have been strengthened to provide Poste Italiane customers with a valid alternative to its own networks for access to transactional services, and have become particularly significant in the context of the health emergency. The objective is to create a platform for the integration of the Group's products with new third-party distribution channels and for the use of third-party

services within the Group's commercial offerings, also introducing innovative services with high added value. Poste Italiane

has affiliated a wide network of contact points.

daily interactions as at June 2022 across multiple channels ~20 mln

The Punto Poste Network consists of collection points (sales points which offer parcel collection and shipping services) and lockers (self-service locations with extended hours of operation) and at 30 June 2022 had 13,927 points, mainly tobacconists.

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MACROECONOMIC CONTEXT

In the first half of 2022, the global economy was affected by the economic repercussions of Russia's invasion of Ukraine and the new lockdown measures adopted in China in response to the fresh wave of Covid-19. Following a brief period of easing at the start of 2022, the outbreak of the Russia-Ukraine conflict placed renewed pressure on global supply chains. Disruptions in said supply chains, combined with tensions on the commodities markets, created additional pressures on inflation in a context characterised by increasingly greater evidence of intense and extensive internal pressures on prices arising from the increase in salaries. The volatility of commodity prices, linked to critical issues in supply, was joined by progressively less accommodating financial conditions, reflected in the normalisation of the monetary policy by the main central banks, which caused a general drop in the prices of risky assets and a significant increase in returns.

The macroeconomic projections formulated by the European Central Bank⁸ in June 2022 indicated an increase in global GDP in real terms (excluding the euro area) by 3.0% in 2022, 3.4% in 2023 and 3.6% in 2024, outlining a weaker growth trend compared to the forecasts in March. The two fundamental adverse factors are expected to continue considerably impacting trade in the upcoming quarters.

In the June 2022 forecasts, the ECB estimated a growth in the Eurozone GDP of 2.8% in 2022 and 2.1% in 2023 and 2024. Consumer prices in the euro area recorded continuous increases during the six-month period, which drove inflation up, in May 2022, to a level of 8.1%⁹ .

Already from the start of 2022, the Italian economy had entered only a marginally expansive phase (0.1% q/q in the first quarter of 2022). Confidence surveys confirmed the heterogeneity between the reaction of households and businesses to the impact of the war: the consumer confidence index in June 2022 recorded a decrease on the previous month, coming to 98.3 (reaching a new low since November 2020), while the composite index of business confidence in June 2022 rose to 113.6 from 111 in May, recording the highest value since last December¹⁰ .

The manufacturing sector proved to be relatively resilient, as also shown by the data on industrial production¹¹, while services continued to benefit from a "normalisation" of spending habits in "contact-intensive" sectors, which, currently, do not seem to be affected by the new increase in infections recorded in recent weeks.

The phase of recovery in investments and the maintenance of business confidence at level higher than the long-term average is, however, associated with a worsening in the balance of trade and an acceleration in inflation. In May, the Italian national consumer price index (NIC), gross of tobacco, recorded another increase of 6.9% on an annual basis (from +6.0% in the previous month), driven both by energy prices and by a wider spread of inflation.

Following these developments, the growth prospects of the economy now appear weaker and much more uncertain than at the start of the year.

⁸ ECB - Economic Bulletin - Number 4/2022

⁹ Eurostat - Inflation in the euro area - 1 July 2022

¹⁰ Istat - Flash Statistics - Consumer and Business Confidence - June 2022.

¹¹ https://www.istat.it/it/archivio/272870

Istat predicts an average growth in the Italian GDP of 2.8%, driven by internal demand. The expansive phase of the Italian economy is also envisaged for 2023, albeit with a relatively more moderate intensity (+1.9%), supported entirely by the contribution of internal demand net of stocks.

With reference to the postal market in particular, it is undergoing a period of radical change, mainly due to the digital transformation, which has influenced volumes of mail and packages in circulation. In terms of macro-trends, the continuous structural decrease in volumes of traditional mail, replaced by digital forms of communication (email, instant messaging, etc.), has been accompanied by a significant increase in the volume of parcels shipped.

More specifically, for the mail market, after the significant drop in volume in 2020 (-19% with respect to 2019), 2021 saw substantial stability¹² .

The parcels segment is experiencing a period of uncertainty this year, but it does not undermine the market value, which increased greatly during the years of the pandemic. The effects of the continuation of the growth trend recorded in recent years can be summarised by the general increase in costs due to the Russia-Ukraine conflict, the increase in inflation with consequent decrease in consumer purchasing power and the propensity towards private purchases (including online). This trend is also visible at global level, as shown by the results of various leading companies.

For the Italian parcel segment, estimates for 2022 therefore show a consolidation of the market value, with situations of greater growth, even in 2022, in "Food & Grocery"; however, there is a slowdown in online purchases for the more mature segments, such as clothing and IT.

REGULATORY CONTEXT

Expense of the Universal Postal Service

On 30 December 2019, the Ministry for Economic Development and Poste Italiane signed the new Contratto di Programma (Service Contract) for the years 2020-2024, effective from 1 January 2020 and ending 31 December 2024.

On 1 December 2020, the European Commission approved the compensation for public service obligations provided for in the 2020-2024 Service Contract in the amount of €262 million per year. The compensation system for the public service obligations undertaken by the Company was deemed to be fully compliant with the applicable EU rules on State aid.

On 1 July 2021, AGCom Resolution 199/21/CONS was published, concluding the procedure to verify the net cost of the universal postal service incurred by Poste Italiane for the years 2017, 2018 and 2019. In 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 Service Contract) is in any case higher than the offsets authorised by the European Commission. The 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 261/1999. Poste Italiane has appealed this decision to the Lazio Regional Administrative Court.

¹² Source: Processing of internal forecasts

Publishing tariff subsidies

The 2020 Budget Law (Law no. 160 of 27 December 2019) redefined the appropriations for reimbursement, providing for a value of €53.1 million for 2020, €53.2 million for 2021 and €52.5 million for 2022.

The 2021 Budget Law (Law no. 178 of 30 December 2020) provided an allocation of €52.5 million for 2023.

The 2022 Budget Law (Law no. 234 of 30 December 2021) made no changes to the allocations for 2022 and 2023, equal to €52.5 million, and provided the same amount for 2024.

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 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.

The procedure for pre-notification of the Service of General Economic Interest (SGEI) to the Commission for the period 2020-2026 is under way.

EVOLUTION OF THE REGULATORY SCENARIO

The main regulatory changes made during the first half of 2022 are shown below. For a complete discussion of the regulatory scenario of the Mail, Parcels and Distribution Strategic Business Unit, please see chapter 3 "Business Model" in the 2021 Financial Report.

Competition on the parcel delivery market

With AGCom resolution 212/20/CONS of 1 July 2020 ("Analysis of the parcel delivery service" - interim report), the Authority initiated the procedure to identify the relevant markets for parcel delivery services and to assess the relative level of competitiveness. The resolution highlights a predominant role for Poste Italiane in the C2X* market, which nevertheless has a marginal impact on the overall parcel market.

Following a structured consultation process, launched in August 2021 by Resolution 255/21/CONS, the Authority defined the matter with Resolution 94/22/CONS of 5 May 2022, which imposed specific reporting obligations on Amazon, as an "operator with significant market power" on the B2C segment, and a number of obligations on other operators, including Poste Italiane, present on the market of medium-to-large parcel deliveries.

In particular, the operators must send an annual series of information about the economic conditions of the services offered to the public and information of reference for the various business customer categories, the contracts in force that govern the commercial relations with sector companies and standard templates for employment contracts.

Note that, in this regard, the Authority requested that Poste Italiane provide further information about a certain type of parcel (domestic mail items with certain characteristics of thickness and volume); the Company believes that these products do not fall within the scope of application of the European parcels regulation (Regulation (EU) 2018/644 of the European Parliament and of the Council of 18 April 2018 on cross-border parcel delivery services). Technical discussions around this matter are ongoing between the Company and AGCom.

*The C2X market identifies Consumer-to-Consumer/Business parcels i.e. parcels sent by consumers both to other consumers and to businesses.

AGCOM Identification of Relevant Markets for Mail

In March 2022, with Resolution 51/22/CONS, the public consultation was launched, "Analysis of the mail delivery service market and determination of the maximum tariffs for universal postal services – assessment of the level of compliance and definition of regulatory remedies".

On 6 June 2022, Resolution 171/22/CONS containing the definition of the new tariffs of the Universal Service compensation was published; the Resolution encompasses nearly every proposal formulated by the Company in relation to tariff changes, including removing the ban on price increases until 2024 proposed by the AGCom during public consultation; further future changes may be proposed to the Authority. The new tariffs came into force on 27 June 2022.

AGCom also amended and supplemented the current access obligations defined by AGCM as part of the concentration with Nexive (proc. C12333), with particular reference to post offices (the number of which was extended from 2,000 to 4,000) and to the economic offer conditions set out by Measure 8 of the AGCM provision (which were reduced). In light of these changes, Poste Italiane must notify AGCom of wholesale offers within 60 days from the date of first application (established as 31 October 2022). During this period, the application details must be defined.

Replicability of offers (EU2 areas)

In terms of access to the postal network and the repeatability of offers, with Resolution 294/20/CONS of July 2020, the process was launched to review the criteria for defining "EU2 Areas"¹³ .

With Resolution 27/22/CONS of 4 February 2022 "Revision of criteria for defining EU2 areas and identification of the relative postcodes", AGCom concluded the process with the identification of the EU2 post codes both for unrecorded mail (30.4% of the national population, based on the aggregate coverage of the main alternative national postal operators that offer established and continuous delivery services) and for recorded mail (10.2% of the population, based on the aggregate coverage of the main alternative national postal operators, including those that offer recorded mail services on their own behalf of on behalf of national postal operators).

The new perimeter defined by the Authority will be used, in particular, in order to identify the regional coverage of wholesale access to its network pursuant to AGCM provision C12333 (provision no.28497 of 22 December 2020, which prescribed various conduct measures to Poste Italiane following the approval of the concentration operation between Poste Italiane SpA and Nexive Group S.r.l.), as well as the repeatability test of Poste Italiane's multiple consignment offers, regulated by Resolution AGCom 452/18/Cons.

Mailboxes In accordance with article 2, paragraph 7, of the 2020-2024 Service Contract, on 24 June 2020, Poste Italiane submitted to AGCom a proposal to adjust the number of mailboxes to the changed size of the market and customer needs, taking into account the trend in postal volumes and actual use by users.

With Resolution 155/22/CONS of 9 June 2022, the Authority launched the public consultation on the reshaping of the criteria related to the distribution of mailboxes. Poste Italiane submitted its comments by the established deadline.

¹³ EU2 Areas: Areas where there are no competitors to Poste Italiane.

Digital notification of PA documents - new platform

Law Decree no. 76 of 16 July 2020 ("Simplifications"), converted into Law no. 120 of 11 September 2020, by means of article 26, as amended, regulates the implementation of the platform for the digital notification of public administration acts. The operator of the platform will be the company PagoPA, which may entrust its implementation, in whole or in part, to Poste Italiane as Universal Service Provider.

The technical and operational modes of operation of the platform were defined with Decree no. 58 of 8 February 2022 of the Ministry for Technological Innovation and Digital Transition, published in Official Gazette no. 130 of 6 June 2022.

At the request of PagoPA, Poste Italiane is contributing to the creation of the Platform, including through the use of its own services, on the basis of an Agreement, still being defined, which will govern the scope of the services, the responsibilities and the economic remuneration.

Guidelines for the award of public contracts for postal services

In May 2022, following a structured consultation process that began in 2020, the Official Gazette published the provision of the National Anti-Corruption Authority (ANAC) and AGCom, containing the "Guidelines for the award of public contracts for postal services" (Resolution no. 185/2022 ANAC of 13 April 2022).

The main topics concern: the subdivision into delivery lots as a general rule, the assessment of delivery coverage which must be developed alternatively in the technical or economic bid, the automatic non-application of the social clause, the non-admissibility of subcontracting and the mailing for notices of judicial deeds.

The document, in force from 19 May 2022, albeit not binding, shall constitute the basis for the construction of public contracts for postal services and shall provide economic operators with interpretation guidelines for formulating bids.

AGCM Nexive Group Srl Obligations

As part of the acquisition of Nexive, concluded in January 2021, and the related obligations of Poste Italiane, in relation to compliance checks by the Authority, technical discussions are under way regarding the interpretation of the conduct measure relative to the maintenance of the portfolio of offerings in the two years following the transaction.

The Company provided AGCM with additional detailed information, also taking account of the developments introduced by AGCom Resolution 171/22/CONS of 30 May 2022 related to the aforesaid mail market.

OPERATING REVIEW

Also in 2022, the Group continues with the process of reorganising its transport, sorting, delivery and customer experience activities, in line with the long-term objectives outlined in the new "24SI Plus" Business Plan, such as increasing efficiency, flexibility and quality in order to seize the opportunities arising from the development of e-commerce.

The following table shows the main activities of the Mail, Parcels and Distribution Strategic Business Unit for the period:

SEGMENT OPERATING REVIEW

The parcel offer related to the Poste Delivery Business was enriched with a new function that will allow sellers, Second Hand platform users, to ship from proximity points (post offices, shops and tobacconists in the Punto Poste Network), including in paperless mode, i.e. without the need to print a label.

The extension of home delivery of medicines continued in large cities and medium/small municipalities. This is offered in three modes: instant (within 90 minutes of purchase), scheduled (at the desired time) or next day (day after purchase). The service is currently active in over 170 municipalities (major cities and medium-small towns).

Parcels/Logistics

Mail

In May 2022, a majority stake was acquired in the company Plurima, an Italian leader in the sector of healthcare logistics.

The logistic support to the vaccination campaign for the delivery of Covid-19 vaccine doses continued, with over 30 million doses delivered throughout Italy. Poste Italiane also offered free access to an online vaccination booking platform.

Finally, the distribution of Personal Protective Equipment (e.g. masks) throughout Italy continued.

In June 2022, a fee manoeuvre was launched that affected a number of Correspondence and Notification services. The price changes involved a number of products belonging to Universal Services as well as additional services¹⁵, with a view to keeping the offer consistent.

FINANCIAL SERVICES BUSINESS UNIT

The businesses included within the Financial Services SBU are managed by Bancoposta, as an intermediary that places the financial and insurance offerings of the Group.

FINANCIAL SERVICES Most trusted financial institution in Italy, benefiting from an omni-channel approach • Promoting diversification of asset allocation • Expansion of omni-channel for the Customer • Integration of non-life coverage into the investment offering "2024 Sustain & Innovate Plus" Strategy

¹⁴This project involves replacing 10,500 traditional letterboxes with Smart boxes equipped with sensors to detect the presence of mail, environmental sensors to detect temperature, humidity and pollution and, for some, e-ink (electronic ink) screens to transmit advertising messages for the Group's products and services.

¹⁵ For more information about the fee changes introduced, please see the following website: https://www.poste.it/variazione-tariffe-servizipostali-universali.html

MARKET CONTEXT

Financial markets

After a particularly favourable year for the stock markets, 2022 began marked by a high degree of uncertainty linked to greater inflationary pressures that lasted longer than expected. After the initial negative impact due to the outbreak of the Russia-Ukraine conflict, the prices on the European stock markets initially recovered, encouraged by signs of a possible containment of the conflict and the surprisingly positive performance of corporate profits in the first quarter of the year, which strengthened the risk appetite.

In the second quarter, however, share prices dropped once more due to sharp falls in the economic forecasts, linked to the worsening of the uncertainty generated by the introduction of new Covid-19 containment measures in China. The decreases from the start of the year in the main stock markets also reflect the increase in interest rates and the downward revision of the growth expectations of corporate profits, which had supported the equity performance in 2021.

Overall, in recent months there has been a general worsening in global financial conditions in response to a context of growing uncertainty around the economic prospects and accelerated normalisation of monetary policies in advanced countries.

In the USA, the persistence of inflationary pressures led the Federal Reserve to initially increase interest rates in March by one quarter of a percentage point then in June by another 75 basis points (bps), bringing them to a range within 1.50% and 1.75%. The latest forecasts by the Federal Open Market Committee¹⁶ reflect further growth in expected interest rates to 3.4¹⁷% at the end of 2022 and 3.817% as an end-rate for 2023.

In Europe, the potential loss of control over expected inflation led the governing council of the European Central Bank (ECB) to adopt a most restrictive approach, deciding at the meeting in March to proceed with the announced normalisation strategy of the monetary policy, while also accelerating the pace of reduction of Asset Purchase Programme (APP) purchases. At the Governing Council in June¹⁸, the ECB announced that it wanted to increase the rates by 25 bps in July and an additional 50 bps in September (25 bps if the inflation envisaged in the medium term was 2% or lower). At the Governing Council on 21 July, however, it revised the initial estimate, increasing the benchmark rates by 50 bps as of 27 July 2022.

Following the official meeting in June, an emergency meeting was called, focused on "fragmentation risk", or the "incorrect transmission of monetary policy drivers to real economies" in all countries in the area, which had previously been a source of increased financial instability. On this occasion, the ECB officially announced flexibility in reinvestments of redemptions coming due in the Pandemic Emergency Purchase Programme (PEPP) as well as a new instrument to protect market stability, which will hopefully be presented at the meeting in July.

The measures adopted by the FED and the ECB, aimed at rebalancing the monetary policy conditions, led to an increase in the long-term rates: on 30 June 2022 the US 10 Year Treasury reached 2.99% (+148 bps compared to the end of 2021), the Italian Multi-year Treasury Bond (BTP) with the same maturity 3.37% (+219 bps compared to the end of 2021), while the spread with the Bund reached 198 bps (+64 bps compared to the end of 2021).

The Italian stock market, with the FTSE MIB, decreased in the six-month period by 22.13%¹⁹, and it was also penalised by the downward revisions of the growth expectations of corporate profits deriving from geopolitical tensions.

The table below shows the precise returns expressed in percentage terms at the end of the period for BTP and interest rate swaps²⁰ .

¹⁶ The FOMC (Federal Open Market Committee) is the monetary committee of the Federal Reserve.

¹⁷ https://www.bloomberg.com/news/articles/2022-06-15/the-fed-s-new-dot-plot-after-its-june-policy-meeting-chart.

¹⁸ ECB - Monetary policy decisions - 9 June 2022.

¹⁹ Change related to the period 30.12.2021 – 30.06.2022.

²⁰ Source: Bloomberg

	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022
BTP 10Y	0.82	0.86	1.17	2.04	3.26
SWAP 10Y	0.10	0.16	0.30	1.19	2.17
BTP 15Y	1.29	1.32	1.54	2.18	3.44
SWAP 15Y	0.36	0.40	0.49	1.29	2.35
BTP 30Y	1.84	1.82	1.99	2.49	3.67
SWAP 30Y	0.48	0.48	0.48	1.02	1.98

The following graph shows the trend of the 10-year BTP-Bund spread in recent years with the values recorded up to 30 June 2022.

Banking system

On the basis of the estimates provided by the Italian Banking Association (ABI), in late May 2022²¹ , customer deposits of the total number of banks in Italy, represented by deposits of resident customers (current accounts, deposit certificates and repurchase agreements) and bonds, increased by 3.9% year on year to around € 2,061 billion, although in the first five months of 2022 the aggregate as a whole decreased by around 8 billion: compared to December 2021, deposits increased by € 2 billion, while bond deposits recorded an outflow of around € 10 billion.

In May 2022, the average cost of bank funding (which includes the return on deposits, bonds and repurchase agreements from households and non-financial companies) was around 0.45%, substantially in line with December 2021 (0.44%).

Bank loans in the first five months of 2022 increased overall by around € 17 billion and the aggregate of private sector loans at May 2022 was € 1,481 billion, representing an annual variation of +2.7%. The component of loans to households and non-financial companies was slightly more dynamic, recording a 2.8% year-on-year increase in May 2022.

In the first five months of 2022, there was substantial stability in interest rates on outstanding loans to households and businesses (from 2.13% to 2.17%), as well as on rates on new business transactions (from 1.18% to 1.13%), while those on new loans to households for home purchases increased slightly (from 1.40% to 1.93%).

²¹ ABI outlook for June 2022 - https://www.abi.it

Asset Management

Assogestioni figures, at 31 May 2022, showed total assets of € 2,395 billion, down by 7.7% compared to € 2,594 billion at the end of 2021 (the positive contribution of inflows of 0.3% was offset by negative performance of -8.0%). With reference to portfolio management, assets amounted to approximately € 1,124 billion, down by 9.6% compared to € 1,243 billion at 31 December 2021 (result of the negative contribution from inflows of -0.6% and from performance of -9.0%). With regard to collective asset management, assets went from about €1,351 billion at the end of December 2021 to about €1,271 billion at the end of May 2022 (-6.0%). With regard to open-ended mutual investment funds alone, customer assets at the end of May 2022 amounted to approximately € 1,189 billion, down by 6.5% compared to approximately € 1,273 billion at the end of December 2021, as a result of the positive contribution of inflows of +1.1% offset by negative performance of (-7.6%).

In terms of net inflows the asset management industry recorded a positive balance of about € 7.7 billion in the first five months of 2022, down by around 80% compared to € 41.7 billion in the same period in 2021.