Poste Italiane

Investor Presentation • May 13, 2020

POSTE ITALIANE Q1 2020 FINANCIAL RESULTS

Rome, May 13, 2020

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

POSTE ITALIANE – CONFIRMED ROLE OF STRATEGIC PILLAR FOR ITALY

WELL POSITIONED TO ADDRESS UNCHARTERED TERRITORIES: DIVERSIFIED AND RESILIENT, WITH A STRONG FINANCIAL PROFILE

FOCUS ON COST REDUCTION AND NEW COMMERCIAL INITIATIVES – BUILDING A STRONGER AND SUSTAINABLE BUSINESS

2020 PERFORMANCE IMPACTED BY LOCKDOWN WHILE EMERGING TRENDS ACCELERATED DELIVER 2022 STRATEGIC DIRECTIONS

PROMPT REACTION TO EMERGENCY

April v ersus the COVID-19 outbreak impacting the country on February 2020.

STRONGER REPUTATION: INCREASING IMPORTANCE OF BEING A SYSTEMIC PLAYER

PRIORITY	ACTIONS	KEY FIGURES AT PEAK
TAKING CARE OF OUR EMPLOYEES	• Company driven service reduction to protect our colleagues' health and safety: – Reduced physical presence in post offices and sorting centers – Personal Protective Equipment (PPE) provided to front office and logistic chain personnel – Constant sanitization of fleets, post offices, sorting centers and HQs – Smart working promptly enabled for all staff functions	• FTE in post offices: -55%1 • 15,000 FTE in smart working • €23m costs to face emergency • Postini in service: -40%1
SAFEGUARDING OUR CUSTOMERS	• Company initiatives to provide a reduced yet continued service: – Regulating daily footfall in post offices to ensure social distancing – Promoting digital & mobile app usage versus post office operations – Maintaining parcel delivery as a priority, responding to client's needs during lockdown – Ensuring orderly pension payments on a pre-agreed schedule	• 422k customers served vs. 1.2m daily visits1 • 531k daily average parcels delivered (+6%)2 • Digital channel transactions: +46%3 • Over 5m pensions paid
SUPPORTING OUR COMMUNITIES	• Poste, a strategic pillar for Italy, providing essential services with a reduced yet continued activity: – Service provider for Emergency income support to most financially vulnerable citizens – Facilitating State wage support (furlough) payment – Supporting municipalities with social aid and PPEs distribution – Agreement with the Carabinieri Corps to home-deliver pensions to most vulnerable seniors	• At least one post office open on a weekly basis in all municipalities • About 35k applications for furlough payments received • Reptrack index: +5.4p.p.4
	1.Percentage changes comparing the worst af f ected (March, 16-21) and pre-COVID-19 period (February 17-22) 2. Daily av erage lockdown period (since March, 9th) v s. pre COVID-19(February 17 – COVID-19 period av erage (January , 27 – February 22) 4. Monthly surv ey conducted by RepTrak Company currently measuring the reputation of ov er 5,000 Companies in more than 60 countries worldwide. Increase registered in	22) 3. As of April 28th v s. pre 4

STRONG CAPITALISATION ACROSS SUBSIDIARIES… …SIGNIFICANT LIQUIDITY RESOURCES¹(€ bn)

STRONG CASH GENERATION, LIMITED AND BALANCED DEBT PROFILE

GROUP FUNDS FROM OPERATIONS (FFO) – Q1-20 (€ m) BALANCED MATURITY PROFILE (€ bn)

ACCELERATING DELIVER 2022 INITIATIVES, IN LINE WITH EMERGING TRENDS

FOCUS ON RETAIL CUSTOMERS' BASIC NEEDS, WITH SIMPLE AND TRANSPARENT PRODUCTS

party networks: +92%⁵

MAIL, PARCEL & DISTRIBUTION Growing B2C, mitigating mail decline: • Increase focus on B2C from China to diversify customer base • Premium delivery services to seize e-commerce opportunities • Accelerate efficiency and business development: signed new partnership with Microsoft FINANCIAL & INSURANCE SERVICES PAYMENTS & MOBILE Conservative & diversified offer for clients' financial and protection needs: • Remote advisory & sales of investment and protection products • Modular offer for tailored P&C products • New insurance multiclass accumulation product Focus on digital payments and integrated telco offers: • Cards: accelerate sales through digital channels leveraging on bundled products • Roll-out of new products for SMEs acquiring • Increase access to third party networks for payments BUSINESS AREA KEY INITIATIVES • +32% B2C parcel volumes¹ • -31% mail volumes² EMERGING TRENDS • App Usage⁴ : – Postepay: +34% – BancoPosta: +20% • Transactions on third • Poste.it daily sessions: +62%³ • Strong Q1 retail net inflows

• Telecom offer to boost online sales and new enhanced home connectivity product

Q1-20 RESULTS OVERVIEW

RESULTS AFFECTED BY LOCKDOWN, ADJ. EBIT EMBEDDING ONE-OFF COSTS FOR EMERGENCY

€ m unless otherwise stated	Q1-19	Q1-20	Var.	Var. (%)
REPORTED REVENUES	2,842	2,755	(87)	(3.0%)
ADJUSTED REVENUES1	2,569	2,456	(112)	(4.4%)
REPORTED EBIT	617	441	(177)	(28.6%)
ADJUSTED EBIT1	351	211	(140)	(40.0%)
REPORTED NET PROFIT	439	306	(133)	(30.2%)
PROFIT1 ADJUSTED NET	247	143	(104)	(42.2%)

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

SEGMENT REVENUES JAN-FEB TRENDS IN LINE WITH PLAN, MARCH PERFORMANCE IMPACTED BY LOCKDOWN

€ m unless otherwise stated

1. Refer to slide 33 for further details on adjustments

2. Financial Services revenues presented in this slide based on gross capital gains w hereas figures presented on slide 18 are based on net capital gains

MAIL, PARCEL & DISTRIBUTION REVENUES

MAIL AND B2B PARCELS IMPACTED BY LOCKDOWN, WHILE B2C ACCELERATED

€ m unless otherwise stated

1. Includes Philately , Patenti Via Poste, Poste Motori, Poste Air Cargo and other rev enues

2. Includes income receiv ed by Other Segments in return f or use of the distribution network and Corporate Serv ices

MAIL VOLUMES AND PRICING

VOLUMES DECLINE ACROSS ALL CATEGORIES, ACCELERATING IN MARCH

• Mail volumes holding up in January and February, whilst strongly impacted by lockdown and voluntarily reduced activity across all product categories
• Direct marketing strongly affected by lockdown
• Recorded mail suspended during lockdown
• Average tariff down due to product mix effect

13

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

WEEKLY MAIL VOLUME EVOLUTION

GRADUAL RECOVERY VS MID-MARCH TROUGH, MAINLY THANKS TO POSTPONED ITEMS

WEEKLY MAIL VOLUME EVOLUTION (M/PC)

PARCEL VOLUMES AND PRICING

SUCCESSFUL B2C STRATEGY WITH HIGHER PARCEL VOLUMES DURING LOCKDOWN

WEEKLY PARCEL VOLUME EVOLUTION

B2C RECORD PEAKS, WITH INBOUND FROM CHINA DIVERSIFYING CUSTOMER BASE

WEEKLY PARCEL VOLUME EVOLUTION (M/PC)

PAYMENTS AND MOBILE REVENUES STRONGLY UP IN A CHALLENGING ENVIRONMENT

PAYMENTS AND MOBILE WELL POSITIONED TO CAPITALIZE ON ACCELERATING DIGITAL PAYMENTS

POSTEPAY: WEEKLY APP TRANSACTIONS (BASE 100)

POSTEPAY: WEEKLY E-COMMERCE TRANSACTIONS (BASE 100)

FINANCIAL SERVICES COMMERCIAL INITIATIVES UP TO SPEED, ADAPTING SERVICE MODEL TO THE "NEW NORMAL"

€ m unless otherwise stated

QUARTERLY GROSS REVENUES¹

FEBRUARY GROSS ADJ. REVENUES YTD

KEY HIGHLIGHTS

• Postal saving fees down on fewer campaign bonds distribution in March
• Resilient Asset Management revenues thanks to recurring fees
• Loan & mortgage distribution fees impacted by reduced commercial activity since March
• Transaction banking down on strong reduction in payment slips
• Net capital gains in line with plan
• Interest income holding up thanks to higher volumes

• Intersegment distribution revenue down due to lower insurance product sales

• Figures presented include gross rev enues whereas f igures on slide 10 include gross capital gains 2. Includes rev enues f rom pay ment slips (bollettino), banking accounts related rev enues, f ees f rom INPS and money transf ers, Postamat 3. Includes reported rev enues f rom custody accounts, credit cards, other rev enues f rom third party products distribution. 4 Gross capital gains in Q1-20 amounted to 291m while capital losses amounted to 57m

GROUP TOTAL FINANCIAL ASSETS

1. Includes accrued interests

STRONG RETAIL NET INFLOWS, SUPPORTED BY LIQUIDITY PRODUCTS IN A VOLATILE MARKET

€ bn unless otherwise stated

TFA EVOLUTION¹ KEY HIGHLIGHTS

• TFA up by 2.6bn, to 539bn, with 6.4bn positive net inflows more than offsetting -3.8bn market effect
• Net inflows driven by:
  • Customers' trust and preference for liquidity products resulting in +4.2bn deposits and +1.3bn postal savings
  • Insurance products +1.0bn thanks to multiclass accumulation product with gradual risk exposure sold in February

INSURANCE SERVICES

1. Includes Private Pension Plan (PPP)

RESILIENT BUSINESS, HIGHER VOLUMES YOY OFFSETTING REDUCED CUSTOMER ACTIVITY IN MARCH

€ m unless otherwise stated

KEY HIGHLIGHTS

• Life revenues up with:
  • Increasing financial margin on higher volumes and improved product margin
  • Offsetting lower upfront fees due to reduced distribution activity
• Non-life revenues broadly stable; positive feedback from new modular offer's first week sale

20

SOLVENCY II RATIO EVOLUTION

1. Core Solvency Ratio defined as (Shareholders' Equity + Retained earnings + Tier 2) / SCR. More details on page 43

KEY HIGHLIGHTS

• Solvency II ratio at 226%, above managerial ambition in a volatile environment
• Negative impact from lower risk free rates, higher BTP-Bund and corporate & high yield spreads
• Positive impact from Currency Volatility Adjustment, up 39bps vs December
• Core Solvency II ratio broadly stable in a volatile market
• Transitional measures provide additional 33p.p. buffer to address market volatility

21

SOLVENCY II RATIO KEY SENSITIVITIES

RESILIENT TO FURTHER MARKET CONDITIONS DETERIORATION

SOLVENCY II RATIO SENSITIVITIES KEY HIGHLIGHTS

transitional measures

• Solvency II ratio in line with risk tolerance under all assumed scenarios, even excluding transitional measures
• Government spread up 100bps vs asset swap resulting in Solvency II ratio above risk tolerance, with BTP-Bund spread at c.300bps and country VA not triggered
• Combined shock on interest rates (-25bps), equity (-30%), corporate spread (+100bps) and Government bond spread (+100bps) still projecting Solvency II ratio above risk tolerance, mitigated by currency VA
• Process to develop internal model, as approved by the BoD, contributing to reduce volatility going forward

GROUP WORKFORCE EVOLUTION

HEADCOUNT REDUCTION AHEAD OF PLAN TO SUPPORT TRANSFORMATION

GROUP COSTS– Q1-20 COSTS UNDER CONTROL, EMERGENCY-RELATED ONE-OFF COSTS IMPACTING COGS

€ m unless otherwise stated

Mar-20

1. Excluding legal disputes w ith employees

2. Excluding other operating costs amounting to 70m in Q1-19 and 139m in Q1-20

Feb-20 YTD

one-off expenses

SEGMENT OPERATING PROFITABILITY

LOWER REVENUES AND HIGHER ONE-OFF COSTS TO FACE COVID-19 EMERGENCY

€ m unless otherwise stated

Q1-19 Q1-20

COST REDUCTION LEVERS

POTENTIAL INITIATIVES TO REDUCE MEDIUM-LONG TERM COSTS WHILE PRESERVING BUSINESS SUSTAINABILITY

	COST INITIATIVES	DESCRIPTION	COST BASE UNDER REVIEW (€ M)	PROPENSITY TO ACTIVATE IN 2020
	PERFORMANCE RELATED INCENTIVES	• Review of incentives related to commercial targets achievement and overall performance	c.400
S T S O C R	HEADCOUNT FLEXIBILITY	• Capability to adapt the workforce quickly to changing business needs • Targeting a lean organization to support business, also via early retirement plans	c.500
H	OTHER MEASURES	• Smart working & reskilling, State wage support for employees in the emergency	c.100
R 1 S H T N- S O O C N	OTHER DISCRETIONARY COSTS	• Consultancies, insourcing, travel expenses	c.100

1. Excluding costs related to business grow th, mainly related to parcel, payment and mobile volumes.

SUSTAINABLE AND RESILIENT OPERATIONAL & BUSINESS MODEL

SUPPORTING ALL STAKEHOLDERS – STRONGER REPUTATION AND TRUST

DELIVER 2020 STRATEGIC DIRECTIONS CONFIRMED AND ACCELERATED, BOTH DURING THE EMERGENCY AND IN THE "NEW NORMAL"

FOCUS ON COST REDUCTION AND NEW COMMERCIAL INITIATIVES – BUILDING A STRONGER AND SUSTAINABLE BUSINESS

2019 DIVIDEND CONFIRMED, NEW BOD TO REVIEW DELIVER 2022 DURING Q4

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

POSTE ITALIANE RANKED WITHIN MAJOR SUSTAINABILITY INDICES

Environment and Social fields by Institutional Shareholder Services Inc. (ISS)

included in the Bloomberg Gender-Equality Index (GEI) 2020, assessing gender equality and reporting transparency

within Stoxx Europe 600, within the Gender Diversity Index (GDI) in relation to gender diversity in top

management positions

Poste Italiane ranked #6 in the Integrated Governance Index

POSTE GROUP: Q1-20 ADJUSTMENTS

EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q1-19	Q1-20	€ m	%
REPORTED REVENUES	2,842	2,755	(87)	(3%)
GROSS CAPITAL GAINS ON INVESTMENT PORTFOLIO	261	291
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	12	8
ADJUSTED REVENUES	2,569	2,456	(112)	(4%)
REPORTED COSTS	2,225	2,315	90	+4%
CAPITAL LOSSES ON INVESTMENT PORTFOLIO	0	57
EARLY RETIREMENT INCENTIVES	3	1
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	4	11
ADJUSTED COSTS	2,218	2,246	28	+1%
REPORTED EBIT	617	441	(177)	(29%)
ADJUSTED EBIT	351	211	(140)	(40%)
REPORTED NET PROFIT	439	306	(133)	(30%)
ADJUSTED NET PROFIT	247	143	(104)	(42%)

GROWTH IN PAYMENTS & MOBILE

KEY METRICS CONSTANTLY IMPROVING

MOBILE & LAND LINE, STOCK (# M)

CARD STOCK¹ 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

POSTE ITALIANE DIGITAL FOOTPRINT

KEY METRICS CONSTANTLY IMPROVING

CUMULATED APP DOWNLOADS¹ DAILY ONLINE USERS

REGISTERED ONLINE USERS

ELECTRONIC IDENTIFICATION² STOCK

CONSUMER FIN. TRANSACTIONS

PRIVATE DIGITAL IDs

FINANCIAL SERVICES: Q1-20 ADJUSTMENTS

EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q1-19	Q1-20	€ m	%
SEGMENT REPORTED REVENUES	1,485	1,464	(21)	(1%)
GROSS CAPITAL GAINS ON INV. PORTFOLIO	261	291
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	12	8
SEGMENT ADJUSTED REVENUES	1,212	1,165	(46)	(4%)
INTERSEGMENT REVENUES	193	166	(27)	(14%)
ADJUSTED TOTAL REVENUES	1,405	1,331	(74)	(5%)
REPORTED COSTS	1,417	1,408	(9)	(1%)
EARLY RETIREMENT INCENTIVES	1	0
CAPITAL LOSSES ON INV. PORTFOLIO	0	57
CAPITAL GAINS COMMISSIONING	204	185
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	4	11
ADJUSTED COSTS	1,209	1,155	(54)	(4%)
REPORTED EBIT	261	223	(39)	(15%)
ADJUSTED EBIT	196	176	(20)	(10%)
REPORTED NET PROFIT	190	155	(35)	(18%)
ADJUSTED NET PROFIT	142	123	(19)	(13%)

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

PRUDENT ALM STRATEGY TO MATCH ASSETS AND LIABILITIES

€ bn unless otherwise stated

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

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

NET UNREALIZED LOSSES AT 2.2BN

€ m unless otherwise stated

POSTAL SAVINGS CUSTOMER PREFERENCE FOR LIQUIDITY PRODUCTS RESULTED IN 1.3BN NET INFLOWS

€ m unless otherwise stated

ASSET MANAGEMENT PROGRESSING POSITIVE NET INFLOWS MITIGATING THE IMPACT OF MARKET EFFECT

€ m unless otherwise stated

Unit linked & multiclass Class III

AVERAGE ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT EVOLUTION – EOP

effect

inflows

ASSET MANAGEMENT NET INFLOWS INCREASING IN Q1-20

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

AVERAGE WEEKLY FOOTFALL IN POST OFFICES AND DIGITAL PRESENCE¹(M)

Daily average digital presence Daily average postal office footfall

1. Weekly average 3. Insurance products, mutual funds and postal bonds

2. Number of unique visitors on Poste.it w ebsite and APPs users; w eekly average

INSURANCE SERVICES SOLVENCY II EVOLUTION

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

CHANGE VS. DECEMBER 2019 (€ M)

(1,168)

INSURANCE SERVICES: SOLVENCY II RATIO COMPOSITION

CORE SOLVENCY II RATIO BROADLY STABLE IN A VOLATILE MARKET

KEY HIGHLIGHTS

• Market volatility mainly impacting solvency II reconciliation reserve, while shareholders' equity and subordinated liabilities contribute to stabilize the ratio
• "Core" Solvency II ratio down 10 p.p. only to 149% vs FY19, showing resiliency to market volatility

INSURANCE SERVICES CONTINUED DIVERSIFICATION TOWARDS MORE CAPITAL EFFICIENT PRODUCTS

€ m unless otherwise stated

INSURANCE SERVICES

GROSS WRITTEN PREMIUM MIX IN Q1-20

INSURANCE SERVICES POSITIVE NET INFLOWS IN Q1 THANKS TO NEW MULTICLASS ACCUMULATION PRODUCT

€ m unless otherwise stated

INSURANCE SERVICES LOW RISK INVESTMENT PORTFOLIO

Q1-19 FY-19 Q1-20

11% 9% 80% Global govies Italian Govies Corporate bonds High yield Emergingmarkets Equity Private markets Q1-19 1H 2019 FY 2019 Q1-20 Var. YoY Minimum guaranteed return (Class I) (%) 0.75 0.72 0.67 0.64 (11)bps Segregated fund return (%) 1.92 2.36 2.38 2.06 14bps Inflation linked Fixed income Floating DURATION 8.2 YEARS DURATION 0.1 YEARS DURATION 3.5 YEARS 62% 59% 60% 9% 9% 8% 18% 18% 18% 4% 4% 5% 4% 4% 4% 2% 2% 1% 2% 3% 3% DURATION: 7.0 YEARS

INVESTMENT PORTFOLIO BREAKDOWN FIXED INCOME BREAKDOWN BY RATE TYPE

MAIL, PARCEL & DISTRIBUTION NET CASH POSITION SOLID AND IMPROVING NET CASH POSITION

€ m unless otherwise stated

NET CASH POSITION (+CASH – DEBT)

OPERATIONAL KPI's	Q1-19	Q1-20	Δ% YoY
Mail Volumes (#m) Parcels delivered by mailmen (#m) MAIL PARCEL & Parcel volumes (#m) DISTRIBUTION B2C Revenues (€m)	717 12 35 86	614 14 38 108	(14%) +15% +10% +26%
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) Digital e-Wallets (#m)	21.2 6.6 0.3 55.8 4.2 3.1	21.0 7.0 0.4 81.4 4.5 5.9	(1%) +6% +9% +46% +6% +88%
Total Financial Assets - TFAs (€/bn) FINANCIAL Product Sales (#m) SERVICES Unrealized gains (€m)	525 2.3 (3,093)	539 1.8 (2,224)	+3% (22%) +28%
Gross Written Premiums (€m) INSURANCE GWP – Life (€m) SERVICES GWP – Private Pension Plan (€m) GWP – P&C (€m)	5,989 5,637 273 79	4,599 4,273 249 77	(23%) (24%) (9%) (3%)

INTERSEGMENT COSTS AS OF Q1-20

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	(6%)
	delivery volume and other corporates services1 ; flat fee (depending on the product)
M ail, Parcel & Distribution	b) Financial Services for promoting and selling card	b) 39	(1%)
	b) Fixed % of revenues payments and other payments (e.g. tax payments)
	throughout the network;	Total: 87
	• Insurance Services remunerates:
Payments & a) d) M obile	c) Financial Services for promoting and selling
g)	insurance products2 and for investment management c) Fixed % of upfront fees	c) 119	(17%)
	services3 ; d) Depending on service/product	d) 7	63%
e) Insurance h) Services	d) Mail, Parcel and Distribution for providing corporate
	services1 ;	Total: 127
	• 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) 1,203	(6%)
	throughout the network and for proving corporate product) of revenues
	services4 ;
	f) Depending on service/product f) Payments & Mobile for providing certain payment	f) 80	(7%).
Financial Services	services5	Total: 1,284
	• Mail, Parcel and Distribution remunerates:
	g) Payments & Mobile for acquiring services and
	g) Annual fee postman electronic devices	g) 10	25%
	h) Financial Services as distribution fees related to h) Flat fee for each «Bollettino»	h) 8	(23%)
	"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

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'

CONSOLIDATED ACCOUNTS PROFIT & LOSS

€m	Q1-19	Q1-20	Var.	Var. %
Total revenues	2,842	2,755	(87)	(3%)
of which:
Mail, Parcel and Distribution	880	771	(109)	(12%)
Payments and Mobile	140	165	26	+18%
Financial Services	1,485	1,464	(21)	(1%)
Insurance Services	337	355	17	+5%
Total costs	2,225	2,315	90	+4%
of which:
Total personnel expenses	1,438	1,404	(33)	(2%)
of which personnel expenses	1,435	1,402	(32)	(2%)
of which early retirement incentives	3	1	(2)	(68%)
of which legal disputes with employees	0	1	1	n.m.
Other operating costs	599	708	109	+18%
Depreciation, amortisation and impairments	188	203	15	+8%
EBIT	617	441	(177)	(29%)
EBIT Margin	+22%	+16%
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method	6	7	0	+7%
Profit before tax	623	447	(176)	(28%)
Income tax expense	184	141	(44)	(24%)
Profit for the period	439	306	(133)	(30%)

€m	Q1-19	Q1-20	Var.	Var. %
Segment revenue	880	771	(109)	(12%)
Intersegment revenue	1,331	1,260	(71)	(5%)
Total revenues	2,211	2,031	(180)	(8%)
Personnel expenses	1,407	1,375	(31)	(2%)
of which personnel expenses	1,404	1,375	(29)	(2%)
of which early retirement incentives	2	0	(2)	(94%)
Other operating costs	460	483	23	+5%
Intersegment costs	20	17	(3)	(14%)
Total costs	1,887	1,876	(11)	(1%)
EBITDA	324	155	(169)	(52%)
Depreciation, amortisation and impairments	176	191	15	+9%
EBIT	148	(36)	(185)	(125%)
EBIT MARGIN	+7%	(2%)
Finance income/(costs)	2	3	1	+27%
Profit/(Loss) before tax	151	(33)	(184)	n.m.
Income tax expense	49	(2)	(52)	(105%)
Profit for the period	101	(31)	(132)	n.m.

€m	Q1-19	Q1-20	Var.	Var. %
Segment revenue	140	165	26	+18%
Intersegment revenue	96	90	(6)	(6%)
Total revenues	235	255	20	+9%
Personnel expenses	9	7	(2)	(23%)
of which personnel expenses	9	7	(2)	(23%)
of which early retirement incentives	0	0	0	n.m.
Other operating costs	73	87	14	+20%
Intersegment costs	91	87	(4)	(4%)
Total costs	172	181	8	+5%
EBITDA	63	75	12	+18%
Depreciation, amortisation and impairments	6	8	1	+19%
EBIT	57	67	10	+18%
EBIT MARGIN	24%	26%
Finance income/(costs)	2	3	2	n.m.
Profit/(Loss) before tax	59	71	12	+21%
Income tax expense	16	19	3	+18%
Profit for the period	42	51	9	+21%

€m	Q1-19	Q1-20	Var.	Var. %
Segment revenue	1,485	1,464	(21)	(1%)
Intersegment revenue	193	166	(27)	(14%)
Total revenues	1,678	1,630	(48)	(3%)
Personnel expenses	12	11	(1)	(9%)
of which personnel expenses	11	11	(0)	(4%)
of which early retirement incentives	1	0	(1)	(100%)
Other operating costs	44	113	69	+159%
Depreciation, amortisation and impairments	0	0	0	n.m.
Intersegment costs	1,361	1,284	(77)	(6%)
Total costs	1,417	1,408	(9)	(1%)
EBIT	261	223	(39)	(15%)
EBIT MARGIN	16%	14%	(0)	(12%)
Finance income/(costs)	1	(1)	(3)	n.m.
Profit/(Loss) before tax	263	221	(42)	(16%)
Income tax expense	72	66	(7)	(9%)
Profit for the period	190	155	(35)	(18%)

€m	Q1-19	Q1-20	Var.	Var. %
Segment revenue	337	355	17	+5%
Intersegment revenue	0	0	(0)	(86%)
Total revenues	338	355	17	+5%
Personnel expenses	10	11	1	+8%
of which personnel expenses	10	10	(0)	(1%)
of which early retirement incentives	0	1	1	n.m.
Other operating costs	23	25	2	+10%
Depreciation, amortisation and impairments	6	4	(1)	(25%)
Intersegment costs	148	127	(21)	(14%)
Total costs	187	167	(19)	(10%)
EBIT	151	187	36	+24%
EBIT MARGIN	45%	53%
Finance income/(costs)	0	2	1	n.m.
Profit/(Loss) before tax	151	189	37	+25%
Income tax expense	46	58	12	+26%
Profit for the period	105	131	25	+24%

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.

2020 guidance is based on what was announced on March 6, 2020 and - therefore - does not take into account the impacts of the Covid-19 pandemic and of the restrictive measures taken by each Country to face it.

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.

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.