Poste Italiane

Investor Presentation • Jul 31, 2020

POSTE ITALIANE Q2 & H1 2020 FINANCIAL RESULTS

Rome, July 31, 2020

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

Q2 AND H1 FINANCIAL PERFORMANCE IMPACTED BY LOCKDOWN WHILE POSTE SUCCESSFULLY MANAGED THE EMERGENCY, STRENGTHENING ITS ROLE AS SYSTEMIC PLAYER FOR ITALY

SHARP MAIL DECLINE, PARTIALLY MITIGATED BY UPWARD TREND IN B2C

FINANCIAL & INSURANCE, PAYMENTS & MOBILE BACK TO LONG TERM TRAJECTORY

ONGOING TRANSFORMATION TO EXPLOIT EMERGING MARKET OPPORTUNITIES

TANGIBLE COST CUTTING ACTIONS ALREADY IN Q2

Q2-20 & H1-20 RESULTS OVERVIEW

FINANCIAL PERFORMANCE AFFECTED BY LOCKDOWN, STRONG COST REDUCTION MITIGATING EBIT IMPACT

€ m unless otherwise stated

	Q2-19	Q2-20	Var.	Var. (%)	H1-19	H1-20	Var.	Var. (%)
TOTAL REVENUES	2,679	2,328	(352)	(13.1%)	5,521	5,083	(438)	(7.9%)
TOTAL COSTS	2,216	2,003	(213)	(9.6%)	4,441	4,317	(123)	(2.8%)
EBIT	464	325	(139)	(29.9%)	1,081	766	(315)	(29.2%)
NET PROFIT	324	239	(85)	(26.2%)	763	546	(218)	(28.5%)

MANAGING THE CRISIS WITH RESILIENT OPERATIONS AND SOCIAL RESPONSIBILITY

POSTE ITALIANE SYSTEMIC ROLE STRENGTHENED

• Strong balance sheet
• Distribution platform of choice diversified business model serving basic customer needs
• Ongoing implementation of a strategy leveraging on long-term market trends across all business lines
• Uninterrupted services, despite a voluntary reduction of non-essential activities
• Taking care of our stakeholders' needs
  • Employees: company driven service reduction to protect health & safety
  • Customers: adopting targeted initiatives and promoting third-party and digital channels
  • Communities: cooperating with key institutions to facilitate the implementation of State's social and economic initiatives; supporting government entities with significant logistic capabilities

GROUP STRENGTHS MANAGING THE CRISIS BEYOND THE EMERGENCY

• Emerging trends in line with our strategy, supported by 5-year transformation plan
• Comprehensive strategic review to seize emerging market opportunities
  • Synergies between physical, digital and thirdparty networks
  • Complementing in person with digital/remote interactions
  • Reassess costs to increase future profitability
  • Implemented new organization and accelerated internal processes transformation
    • (i.e. smart-working, insourcing)

BUSINESS TRENDS IN H1-20: MAIL, PARCEL AND DISTRIBUTION

RESUMING ACTIVITIES ON ALL DISTRIBUTION CHANNELS – DIVERGING TRENDS IN MAIL & PARCELS

DISTRIBUTION CHANNELS (DAILY AVG, M/TRANSACTIONS)

MAIL VOLUMES (DAILY AVG, M/PCS) PARCEL VOLUMES (DAILY AVG, K/PCS)

1. Includes recorded mail and integrated services (value added); 2. Includes unrecorded mail, direct marketing and editorial; 3. Includes multichannel service, basic services, Postel, other integrated services; 4. Includes C2C, International, other

BUSINESS TRENDS IN H1-20: PAYMENTS & MOBILE, FINANCIAL AND INSURANCE

BACK TO BUSINESS FROM JUNE AND INCREASING Y/Y

INVESTMENT GROSS INFLOWS (DAILY AVG¹ , €M)

POSTEPAY DAILY AVG E-COMMERCE TRANSACTIONS (K/#)

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

SEGMENT REVENUES

LOCKDOWN IMPACTING REVENUES ACROSS ALL SEGMENTS, RECOVERING SINCE JUNE AT GROUP LEVEL

€ m unless otherwise stated

1. Financial Services revenues presented in this slide based on gross capital gains whereas figures presented on slide 16 are based on net capital gains

2. Refer to slide 37 for further details on adjustments

3. Refer to slide 28 for further details on adjustments

MAIL, PARCEL & DISTRIBUTION REVENUES

ACCELERATED MAIL DECLINE MITIGATED BY STRONG PARCEL REVENUES BOOSTED BY B2C GROWTH

€ m unless otherwise stated

1. Includes Philately, Patenti Via Poste, Poste Motori, Poste Air Cargo and other revenues 2. Includes income received by Other Segments in return for use of the distribution network and Corporate Services

MAIL VOLUMES AND PRICING

ACCELERATED VOLUME DECLINE ACROSS ALL PRODUCTS, SLOWING DOWN SINCE JUNE

1. Includes Multichannel services, Editorial services, Postel volumes and other basic services 2. Including any product mix effect

MAIL VOLUME EVOLUTION

PARTIALLY RECOVERING SINCE JUNE Y/Y SUPPORTED BY LOWER MARGIN PRODUCTS

DAILY AVERAGE MAIL VOLUME EVOLUTION (K/PC)¹

PARCEL VOLUMES AND PRICING

STRONG PARCEL GROWTH BOOSTED BY RECORD HIGH B2C VOLUMES

• Parcel volumes up, strongly supported by all products and surge in B2C
• B2B volumes increased, with corporates diversifying shipments also to retail customers
• Successful industrial transformation to manage record high volumes, seizing extraordinary ecommerce growth
• Average tariffs down due to mix effect, while each B2C product tariff increased

PARCEL VOLUME EVOLUTION

RECORD B2C – INTERNATIONAL INBOUND VOLUMES FROM CHINA CONTRIBUTING TO DIVERSIFY CUSTOMER BASE

DAILY AVERAGE PARCEL VOLUMES EVOLUTION (K/PC)

1. As of July, 19

PAYMENTS AND MOBILE INCREASING REVENUES IN A CHALLENGING ENVIRONMENT

FINANCIAL SERVICES RE-IGNITING THE COMMERCIAL DISTRIBUTION ENGINE STARTING FROM JUNE

€ m unless otherwise stated

QUARTERLY GROSS REVENUES¹

Apr + May-19 Apr + May-20 JUNE GROSS ADJ. REVENUES

APRIL + MAY GROSS ADJ. REVENUES

HIGHLIGHTS

• Interest income resilient with higher volumes mitigating lower yields impact
• Postal savings distribution fees back on track since June, thanks to successful new 'campaign products'
• Loan & mortgage fees recovering in June supported by increasing volumes
• Resilient asset management fees thanks to recurring component
• Transaction banking fees impacted by fewer payment slips during lockdown, gradually recovering starting from June

Jun-19 Jun-20 1. Figures presented include gross revenues whereas figures on slide 9 include gross capital gains 2. Includes revenues from payment slips (bollettino), banking accounts related revenues, fees from INPS and money transfers, Postamat 3. Includes reported revenues from custody accounts, credit cards, other revenues from third party products distribution. 4 Gross capital gains in Q2-19 and Q2-20 amounted to 0m

GROUP TOTAL FINANCIAL ASSETS STRONG RETAIL NET INFLOWS ACROSS ALL ASSET CLASSES

1. Includes accrued interests

Eop data, € bn unless otherwise stated

TFA EVOLUTION¹ HIGHLIGHTS

• Positive net inflows across all products:

  • Postal savings increasing in June thanks to successful campaign products
  • Deposits increasing with continued preference for liquidity products
  • Net technical provisions up, thanks to commercial focus on multiclass products, with over 10bn GWP since launch in July 2018

• Includes Private Pension Plan (PPP)

RESILIENT REVENUES WITH REDUCED CUSTOMER ACTIVITY, STEADILY RECOVERING STARTING FROM JUNE

€ m unless otherwise stated

HIGHLIGHTS

• Life revenues impacted by:
  • Lower upfront fees due to -1.0bn GWP
  • Lower temporary release on technical reserves (-24m in Jun-20 y/y), with an opposite effect expected in H2
• Non-life revenues impacted by lockdown in April and May, with strong daily average sales starting from June
• Commercial activity back on track, with GWP up y/y since June, driving higher revenues

SOLVENCY II RATIO EVOLUTION

242 276 226 216 36 33 (14p.p.) 4p.p. 34 Jun-19 Dec-19 Mar-20 Δ Own Funds Δ SCR Jun-20 10Y SWAP (bp) ¹⁸ (17) BTP-SWAP SPREAD (bp) 192 142 (15) (12) (2) 154 Transitional measures CORE Solvency Ratio¹ (%) ^{149 128} Δ vs. Mar-20 20 121 159

1. Core Solvency Ratio defined as (Shareholders' Equity + Retained earnings + Tier 2) / SCR. More details on page 49

HIGHLIGHTS

• Solvency II ratio at 216%:
  • Negative impact from lower riskfree rates and lower VA (-27bps) more than offsetting BTP-SWAP spread tightening
  • Positive trend of corporate spreads
• Transitional measures provide additional 34p.p. buffer to address market volatility

19

SOLVENCY II RATIO KEY SENSITIVITIES

RESILIENT UNDER SEVERE SCENARIOS

SOLVENCY II RATIO SENSITIVITIES HIGHLIGHTS

Solvency II ratio in line with risk tolerance under all assumed scenarios

• Solvency II ratio still above risk tolerance under combined shock on interest rates (-25bp), equity (-30%), corporate spread (+100bps) and Italian Government Bond spread (+100bps), supported by currency VA

• Ongoing process to develop internal model to reduce volatility going forward

• Including Transitional measures 2 Vs. Asset Swap Spread 3. Interest rates -25bps, BTP-Swap spread +100bps, corporate spreads +100bps, Delta Multiasset MTM driven by negative equity markets

GROUP WORKFORCE EVOLUTION

SIGNIFICANT HEADCOUNT REDUCTION TO SUPPORT TRANSFORMATION

AVERAGE HEADCOUNT ('000/FTE)

QUARTERLY GROUP COSTS

MATERIAL COST REDUCTION, MORE THAN OFFSETTING EMERGENCY-RELATED ONE-OFF EXPENSES

€ m unless otherwise stated

1. Excluding legal disputes with employees

2. Performance-related includes commercial incentives, MBO, extra-time and other

3. Excluding other Non-HR operating costs amounting to 77m in Q2-19 and 59m in Q2-20

COST REDUCTION LEVERS

ONGOING INITIATIVES REDUCING COSTS IN 2020 – OUTPERFORMING INITIAL PROPENSITY

SEGMENT OPERATING PROFIT

GROUP EBIT IMPACTED BY LOCKDOWN - LOWER COSTS MITIGATING IMPACT ON REVENUES

€ m unless otherwise stated

SUSTAINABLE BUSINESS MODEL ENSURING LONG TERM PROFITABILITY

TARGETED INITIATIVES TO STRUCTURALLY REDUCE COST BASE

FINANCIAL & INSURANCE, PAYMENTS & MOBILE BACK ON TRACK SINCE JUNE

DIVIDEND STRATEGY UNCHANGED AHEAD OF PLAN UPDATE IN Q4

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

POSTE ITALIANE TOP RANKING WITHIN MAJOR SUSTAINABILITY INDICES

POSTE GROUP: Q2-20 & H1-20 ADJUSTMENTS

EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q2-19	Q2-20	€ m	%	H1-19	H1-20	€ m	%
REPORTED REVENUES	2,679	2,328	(352)	(13%)	5,521	5,083	(438)	(8%)
GROSS CAPITAL GAINS ON INVESTMENT PORTFOLIO	0	0			261	291
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	4	(8)			17	0
VISA - CAPITAL GAIN ON SHARE DISPOSAL	1	0			1	0
ADJUSTED REVENUES	2,674	2,336	(338)	(13%)	5,242	4,792	(450)	(9%)
REPORTED COSTS	2,216	2,003	(213)	(10%)	4,441	4,317	(123)	(3%)
CAPITAL LOSSES ON INVESTMENT PORTFOLIO	6	0			6	57
EARLY RETIREMENT INCENTIVES	6	3			9	4
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	5	- 1			9	10
REAL ESTATE FUNDS PROVISIONS	0	-15				-15
ADJUSTED COSTS	2,200	2,015	(184)	(8%)	4,418	4,261	(157)	(4%)
REPORTED EBIT	464	325	(139)	(30%)	1,081	766	(315)	(29%)
ADJUSTED EBIT	474	320	(154)	(32%)	825	531	(294)	(36%)
IMPAIRMENTS	0	19			0	19
REPORTED NET PROFIT	324	239	(85)	(26%)	763	546	(218)	(29%)
ADJUSTED NET PROFIT	332	256	(75)	(23%)	579	399	(180)	(31%)

STRONG CASH GENERATION, LIMITED AND BALANCED DEBT PROFILE

GROUP FUNDS FROM OPERATIONS (FFO) – H1-20 (€ m)

…SIGNIFICANT LIQUIDITY RESOURCES¹(€ bn)

BALANCED MATURITY PROFILE (€ bn)

1. As of June 2020

2. Debt capacity consistent with current rating (based on the Moody's "Key Indicator Report" May-20 and available for future eventual financing operations)

MAIL, PARCEL & DISTRIBUTION NET CASH POSITION

€ m unless otherwise stated

NET CASH POSITION (+CASH – DEBT)

GROUP COSTS – H1-20

SIGNIFICANT COST REDUCTION, MORE THAN OFFSETTING EMERGENCY-RELATED ONE-OFF EXPENSES

€ m unless otherwise stated

31

MAIL, PARCEL & DISTRIBUTION

ACCELERATED MAIL DECLINE MITIGATED BY STRONG PARCEL REVENUES BOOSTED BY B2C GROWTH

€ m unless otherwise stated

PAYMENTS AND MOBILE INCREASING REVENUES IN A CHALLENGING ENVIRONMENT

€ m unless otherwise stated

KEY METRICS IN PAYMENTS & MOBILE

MOBILE & LAND LINE, STOCK (# M)

TOTAL PAYMENT CARD TRANSACTIONS (# BN)

POSTEPAY CONNECT SUBSCRIPTIONS (# K)

POSTE ITALIANE DIGITAL E-WALLET (# M)²

1. Including social measures related cards

2. An innovative electronic tool associated to a single customer, able to authorize in app payment transactions

PAYMENTS AND MOBILE: POSTEPAY TRANSACTION VALUE

POSTEPAY DAILY AVERAGE TRANSACTION VALUE (BASE 100)

POSTE ITALIANE DIGITAL FOOTPRINT

KEY METRICS CONSTANTLY IMPROVING

# m

CUMULATED APP DOWNLOADS¹ DAILY ONLINE USERS

REGISTERED ONLINE USERS

ELECTRONIC IDENTIFICATION² STOCK

CONSUMER FIN. TRANSACTIONS

PRIVATE DIGITAL IDs

FINANCIAL SERVICES: Q2-20 & H1-20 ADJUSTMENTS

EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q2-19	Q2-20	€ m	%	H1-19	H1-20	€ m	%
SEGMENT REPORTED REVENUES	1,180	1,071	(109)	(9%)	2,665	2,535	(130)	(5%)
GROSS CAPITAL GAINS ON INV. PORTFOLIO	0	0			261	291
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	4	-8			17	0
VISA - CAPITAL GAIN ON SHARES DISPOSAL	1	0			1	0
SEGMENT ADJUSTED REVENUES	1,174	1,079	(95)	(8%)	2,386	2,244	(142)	(6%)
INTERSEGMENT REVENUES	179	143	(36)	(20%)	372	309	(63)	(17%)
ADJUSTED TOTAL REVENUES	1,353	1,222	(131)	(10%)	2,758	2,553	(205)	(7%)
REPORTED COSTS	1,185	1,038	(147)	(12%)	2,602	2,446	(156)	(6%)
EARLY RETIREMENT INCENTIVES	0	1			1	1
CAPITAL LOSSES ON INV. PORTFOLIO	6	0			6	57
CAPITAL GAINS COMMISSIONING	-4	0			199	185
REAL ESTATE FUNDS PROVISIONS	0	-15			0	-15
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	5	-1			9	10
ADJUSTED COSTS	1,179	1,053	(125)	(11%)	2,388	2,208	(179)	(8%)
REPORTED EBIT	174	175	2	+1%	435	398	(37)	(8%)
ADJUSTED EBIT	174	168	(6)	(3%)	370	345	(25)	(7%)
IMPAIRMENTS	0	19			0	19
REPORTED NET PROFIT	114	117	3	+2%	305	273	(32)	(11%)
ADJUSTED NET PROFIT	115	133	18	+15%	257	256	(1)	(0%)

FINANCIAL SERVICES RE-IGNITING THE COMMERCIAL DISTRIBUTION ENGINE STARTING FROM JUNE

€ m unless otherwise stated

SEGMENT GROSS REVENUES EBIT

398

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

PRUDENT ALM STRATEGY TO MATCH ASSETS AND LIABILITIES

€ bn unless otherwise stated

BTP investment ptf.

1. Entirely invested in floating rate deposits c/o MEF 2. Includes business current accounts, PostePay business and other customers debt 3. Including liquidity Buffer and excluding Poste Italiane liquidity 4. Average yield calculated as interest income on average current account deposits

5.6 5.5

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

NET UNREALIZED LOSSES AT - €1.4BN

€ m unless otherwise stated

LOAN AND MORTGAGE DISTRIBUTION

VOLUMES RECOVERING SINCE JUNE IN A DOWNWARD TRENDING MARKET

POSTAL SAVINGS CUSTOMER PREFERENCE FOR LIQUIDITY PRODUCTS RESULTED IN €1.5BN NET INFLOWS

€ m unless otherwise stated

ASSET MANAGEMENT PROGRESSING

POSITIVE NET INFLOWS IN A VOLATILE MARKET ENVIRONMENT

€ m unless otherwise stated

Unit linked & multiclass Class III

AVERAGE ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT EVOLUTION – EoP

ASSET MANAGEMENT NET INFLOWS INCREASING IN Q2-20

POSITIVE NET INFLOWS THANKS TO MULTICLASS CLASS III COMPONENT OF INSURANCE PRODUCTS

€ m unless otherwise stated

BANCOPOSTA'S SOLID AND EFFICIENT CAPITAL POSITION

AN ASSET GATHERER WITH A CAPITAL LIGHT BALANCE SHEET

RESILIENT REVENUES WITH REDUCED CUSTOMER ACTIVITY, STEADILY RECOVERING STARTING FROM JUNE

€ m unless otherwise stated

1. Includes Poste Welfare Servizi (PWS) 2. Includes Private Pension Plan (PPP)

INSURANCE SERVICES SOLVENCY II EVOLUTION

SOLVENCY II CAPITAL AND SOLVENCY II CAPITAL REQUIREMENT EVOLUTION (€ M)

CHANGE VS. MARCH 2020 (€ M)

INSURANCE SERVICES: SOLVENCY II RATIO COMPOSITION

CORE SOLVENCY II RATIO BROADLY STABLE IN A VOLATILE MARKET

INSURANCE SERVICES CONTINUED DIVERSIFICATION TOWARDS MORE CAPITAL EFFICIENT PRODUCTS

€ m unless otherwise stated

50

GROSS WRITTEN PREMIUM MIX IN Q2-20

POSITIVE NET INFLOWS IN Q2 THANKS TO NEW MULTICLASS ACCUMULATION PRODUCT

€ m unless otherwise stated

LOW RISK INVESTMENT PORTFOLIO

INVESTMENT PORTFOLIO BREAKDOWN FIXED INCOME BREAKDOWN BY RATE TYPE

Private markets

• Equity
• Emerging markets
• High yield
• Corporate bonds
• Global govies
• Italian Govies

OPERATIONAL KPI's	Q2-19	Q2-20	Δ% YoY	H1-19	H1-20	Δ% YoY
Mail Volumes (#m) Parcels delivered by mailmen (#m) MAIL PARCEL & Parcel volumes (#m) DISTRIBUTION B2C Revenues (€m)	690 11 34 81	523 19 52 145	(24%) +71% +54% +80%	1,407 24 68 167	1,137 33 90 254	(19%) +42% +31% +52%
PostePay cards (#m) of which PostePay Evolution cards (#m) Total payment cards transactions (#bn) PAYMENTS & MOBILE of which eCommerce transactions (#m) Mobile & land-line (#m) Poste Italiane Digital e-Wallets (#m)				22.2 6.9 0.7 0.1 4.4 3.4	21.7 7.3 0.7 0.2 4.6 6.4	(3%) +5% +3% +66% +4% +87%
Total Financial Assets - TFAs (€/bn) FINANCIAL Product Sales (#m) SERVICES Unrealized gains (€m)				530 4.2 (1,889)	548 3.5 (1,411)	+3% (15%) +25%
Gross Written Premiums (€m) INSURANCE GWP – Life (€m) SERVICES GWP – Private Pension Plan (€m) GWP – P&C (€m)	4,184 3,903 227 54	3,147 2,877 218 52	(25%) (26%) (4%) (5%)	10,173 9,540 499 133	7,746 7,150 467 128	(24%) (25%) (7%) (4%)

INTERSEGMENT COSTS AS OF Q2-20

INTERSEGMENT COST FLOWS	INDICATIVE MAIN MAIN RATIONALE REMUNERATION SCHEME	€ m	Δ Y/Y
	• Payments and Mobile remunerates:
	a) Mail, Parcel and Distribution for providing IT, a) Number of payment transactions x	a) 48	(37%)
Mail, Parcel & Distribution	delivery volume and other corporates services1 ; flat fee (depending on the product) b) Financial Services for promoting and selling card
	b) Fixed % of revenues payments and other payments (e.g. tax payments)	b) 42	(25%)
	throughout the network;	Total: 90
	• Insurance Services remunerates:
Payments & a) d) Mobile	c) Financial Services for promoting and selling
g)	insurance products2 and for investment management c) Fixed % of upfront fees	c) 94	(17%)
	services3 ; d) Depending on service/product	d) 14	n.m.
e) Insurance h) Services	d) Mail, Parcel and Distribution for providing corporate
	services1 ;	Total: 107
	• Financial Services remunerates:
f)	e) Mail, Parcel and Distribution for promoting and
c) b)	e) Fixed % (depending on the selling Financial, Insurance and PMD products	e) 933	(10%)
	throughout the network and for proving corporate product) of revenues
	services4 ; f) Depending on service/product	f) 72	(17%).
	f) Payments & Mobile for providing certain payment
Financial Services	services5	Total: 1,007
	• Mail, Parcel and Distribution remunerates:
	g) Payments & Mobile for acquiring services and g) Annual fee	g) 10	27%
	postman electronic devices
	h) Financial Services as distribution fees related to h) Flat fee for each «Bollettino»	h) 7	(28%)
	"Bollettino DTT"	Total: 17
	1. Corporate Services such as communication, anti money laundering, IT, back office and call centers 2. Which, in turn, remunerates Mail, Parcel and Distribution 3. Investment management		55

services provided by BancoPosta Fondi SGR. 4. E.g. Corporate services are remunerated according to number of allocated FTEs, volumes of sent letters and communication costs 5. E.g. 'Bollettino'

€m	Q2-19	Q2-20	Var.	Var. %	H1-19	H1-20	Var.	Var. %
Total revenues	2,679	2,328	(352)	(13%)	5,521	5,083	(438)	(8%)
of which:
Mail, Parcel and Distribution	875	701	(174)	(20%)	1,755	1,472	(283)	(16%)
Payments and Mobile	167	172	6	+3%	306	338	31	+10%
Financial Services	1,180	1,071	(109)	(9%)	2,665	2,535	(130)	(5%)
Insurance Services	458	384	(74)	(16%)	795	739	(57)	(7%)
Total costs	2,216	2,003	(213)	(10%)	4,441	4,317	(123)	(3%)
of which:
Total personnel expenses	1,395	1,228	(167)	(12%)	2,833	2,633	(200)	(7%)
of which personnel expenses	1,389	1,223	(166)	(12%)	2,823	2,625	(198)	(7%)
of which early retirement incentives	6	3	(3)	(45%)	9	4	(5)	(53%)
of which legal disputes with employees	1	2	1	n.m.	1	3	2	n.m.
Other operating costs	627	638	11	+2%	1,227	1,346	119	+10%
Depreciation, amortisation and impairments	193	136	(57)	(30%)	381	339	(42)	(11%)
EBIT	464	325	(139)	(30%)	1,081	766	(315)	(29%)
EBIT Margin	+17%	+14%			+20%	+15%
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method	12	1	(11)	(89%)	18	8	(10)	(57%)
Profit before tax	476	326	(149)	(31%)	1,099	773	(326)	(30%)
Income tax expense	151	87	(64)	(42%)	336	228	(108)	(32%)
Profit for the period	324	239	(85)	(26%)	763	546	(218)	(29%)

194

€m	Q2-19	Q2-20	Var.	Var. %	H1-19	H1-20	Var.	Var. %
Segment revenue	875	701	(175)	(20%)	1,755	1,472	(283)	(16%)
Intersegment revenue	1,122	996	(126)	(11%)	2,453	2,256	(197)	(8%)
Total revenues	1,997	1,697	(300)	(15%)	4,208	3,728	(480)	(11%)
Personnel expenses	1,368	1,206	(162)	(12%)	2,775	2,581	(193)	(7%)
of which personnel expenses	1,362	1,203	(159)	(12%)	2,767	2,579	(188)	(7%)
of which early retirement incentives	6	3	(3)	(54%)	8	3	(5)	(66%)
Other operating costs	499	504	5	+1%	959	987	29	+3%
Intersegment costs	17	17	(0)	(2%)	37	34	(3)	(9%)
Total costs	1,884	1,726	(157)	(8%)	3,770	3,602	(168)	(4%)
EBITDA	114	(29)	(143)	(126%)	438	126	(312)	(71%)
Depreciation, amortisation and impairments	181	128	(53)	(29%)	357	319	(37)	(10%)
EBIT	(67)	(157)	(90)	(135%)	81	(194)	(275)	(339%)
EBIT MARGIN	(3%)	(9%)			+2%	(5%)
Finance income/(costs)	2	3	2	+100%	4	6	2	+48%
Profit/(Loss) before tax	(65)	(154)	(89)	(136%)	85	(187)	(273)	(319%)
Income tax expense	(14)	(50)	(36)	(257%)	35	(53)	(88)	(249%)
Profit for the period	(51)	(104)	(52)	(102%)	50	(135)	(185)	(370%)

€m	Q2-19	Q2-20	Var.	Var. %	H1-19	H1-20	Var.	Var. %
Segment revenue	167	172	6	+3%	306	338	31	+10%
Intersegment revenue	94	81	(13)	(14%)	190	172	(19)	(10%)
Total revenues	261	254	(7)	(3%)	496	509	13	+3%
Personnel expenses	6	6	(0)	(5%)	15	13	(2)	(16%)
of which personnel expenses	6	6	(0)	(5%)	15	13	(2)	(16%)
of which early retirement incentives	0	0	0	n.m.	0	0	0	n.m.
Other operating costs	62	91	30	+48%	134	178	44	+33%
Intersegment costs	132	90	(42)	(32%)	223	177	(45)	(20%)
Total costs	200	188	(13)	(6%)	372	368	(4)	(1%)
EBITDA	61	66	5	+9%	124	141	17	+14%
Depreciation, amortisation and impairments	7	7	0	+0%	13	15	1	+9%
EBIT	54	59	5	+10%	111	126	16	+14%
EBIT MARGIN	21%	23%			22%	25%
Finance income/(costs)	2	-3	(6)	n.m.	4	0	(4)	n.m.
Profit/(Loss) before tax	56	56	(0)	(1%)	115	126	12	+10%
Income tax expense	15	16	1	+8%	32	36	4	+13%
Profit for the period	41	39	(2)	(4%)	83	90	7	+9%

€m	Q2-19	Q2-20	Var.	Var. %	H1-19	H1-20	Var.	Var. %
Segment revenue	1,180	1,071	(109)	(9%)	2,665	2,535	(130)	(5%)
Intersegment revenue	179	143	(36)	(20%)	372	309	(63)	(17%)
Total revenues	1,359	1,214	(145)	(11%)	3,037	2,844	(193)	(6%)
Personnel expenses	10	10	(1)	(5%)	22	20	(2)	(7%)
of which personnel expenses	10	9	(1)	(9%)	21	20	(1)	(7%)
of which early retirement incentives	0	1	0	+368%	1	1	(0)	(29%)
Other operating costs	48	22	(26)	(55%)	91	134	43	+47%
Depreciation, amortisation and impairments	0	0	(0)	n.m.	0	0	(0)	(26%)
Intersegment costs	1,127	1,007	(120)	(11%)	2,488	2,291	(198)	(8%)
Total costs	1,185	1,038	(147)	(12%)	2,602	2,446	(156)	(6%)
EBIT	174	175	2	+1%	435	398	(37)	(8%)
EBIT MARGIN	13%	14%	0	+13%	14%	14%
Finance income/(costs)	(4)	(12)	(8)	n.m.	(2)	(14)	(11)	n.m.
Profit/(Loss) before tax	170	163	(6)	(4%)	432	384	(48)	(11%)
Income tax expense	55	46	(9)	(17%)	128	112	(16)	(12%)
Profit for the period	114	117	3	+2%	305	273	(32)	(11%)

€m	Q2-19	Q2-20	Var.	Var. %	H1-19	H1-20	Var.	Var. %
Segment revenue	458	384	(74)	(16%)	795	739	(57)	(7%)
Intersegment revenue	0	0	0	+311%	0	0	(0)	(73%)
Total revenues	458	384	(74)	(16%)	796	739	(57)	(7%)
Personnel expenses	10	7	(3)	(30%)	20	18	(2)	(11%)
of which personnel expenses	10	7	(3)	(30%)	20	17	(3)	(15%)
of which early retirement incentives	0	0	0	n.m.	0	1	1	n.m.
Other operating costs	20	21	1	+4%	43	46	3	+7%
Depreciation, amortisation and impairments	6	1	(4)	(77%)	11	6	(6)	(51%)
Intersegment costs	118	107	(11)	(10%)	267	234	(32)	(12%)
Total costs	155	136	(18)	(12%)	341	304	(38)	(11%)
EBIT	303	248	(56)	(18%)	454	435	(19)	(4%)
EBIT MARGIN	66%	64%			57%	59%
Finance income/(costs)	12	13	2	+16%	12	15	3	+24%
Profit/(Loss) before tax	315	261	(54)	(17%)	466	450	(17)	(4%)
Income tax expense	95	75	(20)	(21%)	141	133	(8)	(6%)
Profit for the period	220	186	(34)	(15%)	325	317	(8)	(3%)

DISCLAIMER

This document contains certain forward-looking statements that reflect Poste Italiane's management's current views with respect to future events and financial and operational performance of the Company and of the Company's Group.

These forward-looking statements are made as of the date of this document and are based on current expectations, reasonable assumptions and projections about future events and are therefore subject to risks and uncertainties. Actual future results and performance may indeed differ materially from what is expressed or implied in this presentation, due to any number of different factors, many of which are beyond the ability of Poste Italiane to foresee, control or estimate precisely, including, but not limited to, changes in the legislative and regulatory framework, market developments, price fluctuations and other risks and uncertainties, such as, for instance, risks deriving from the recent Covid-19 pandemic and from the restrictive measures taken by each Country to face it.

Forward-looking statements contained herein are not a guarantee of future performance and you are therefore cautioned not to place undue reliance thereon.

This document does not constitute a recommendation regarding the securities of the Company; it does not contain an offer to sell or a solicitation of any offer to buy any securities issued by Poste Italiane or any of its Group companies or other forms of financial assets, products or services.

Except as may be required by applicable law, Poste Italiane denies any intention or obligation to update or revise any forward-looking statements contained herein to reflect events or circumstances after the date of this presentation.

Pursuant to art. 154- BIS,par.2,of the Consolidated Financial Bill of February 24, 1998, the executive (Dirigente Preposto) in charge of preparing the corporate accounting documents at Poste Italiane, Alessandro Del Gobbo, declares that the accounting information contained herein corresponds to document results and accounting books and records.

This presentation includes summary financial information and should not be considered a substitute for Poste Italiane's full financial statements.

Numbers in the document may not add up only due to roundings.