Poste Italiane

Earnings Release • May 10, 2016

1Q 2016 Results

May 10, 2016

1Q 2016: Figures Highlights

1. Net of Intersegment revenues

2. Including other segments (PosteMobile and "Consorzio Telefonia Mobile")

Total Asset Under Management/Administration

Robust clients' asset base with a well balanced mix

1. Current accounts /Active Portfolio Management includes interests income, realized capital gain and income from financial assets at FVTPL (Fair Value through profit or loss)

2. Transaction banking includes: payment slips, F24, money transfers, pension cheques and other revenues from current accounts. Net of intercompany values

Focus on Financial Services (2/3) – Revenues Breakdown

Focus on Financial Services (3/3) – Active Portfolio Management

BancoPosta Regulatory Framework and Capital Position

Key regulatory constraints: 8% min. CET1 ratio1 / 3% min. leverage ratio

Increasing business volumes (customer deposits) and value of securities lowered leverage ratio in 1Q 2016

CET1 ratio slightly decreasing in 1Q 2016 due to higher collaterals on derivatives

ROE2 1Q16 36,2% (vs 30% FY15)

1. 10,5% Min. CET1 ratio required to distribute earnings

2. ROE LTM defined as net earnings/CET1 capital (excluding valuation reserves)

Focus on Insurance Services – Group GWP and Technical Reserves Evolution

Focus on Mail & Parcels (1/2) – Volumes and Revenues Evolution

Direct Marketing and Unaddressed Mail Integrated Services

Other

Group Capital Expenditures

Capex Breakdown by Division (%)

Mail&Parcels / Network Other Financial Services Insurance Services

Investor Relations

15

Q1 2016: a robust base to progress execution further

Financial Services	Most of capital gains for the year booked in Q1; good growth in current account deposits; focus is now on continued growth in personal loans; cross selling; consolidating net in-flows of deposits
Insurance Services & Asset Management	Continued growth in GWP life; gaining momentum in non-life and Asset Management. Execution of Asset allocation strategy
Mail & Parcels	Scaling up deployment of new delivery process. Early retirement plan on track ; restructuring charges to be booked in Q4 as per other years
Group	Robust cash generation and solid balance sheet to support capex , dividends at 80% of net earnings and potential strategic options, if value accretive
	Good progress vs plan; Continued focus on execution

Appendix

€m	1Q 2015	1Q 2016	Var.%
P&L
Revenue from sales and services	2,221	2,161	(2.7%)
Insurance premium revenue	4,921	6,116	24.3%
Other income from financial and insurance activities	1,385	1,467	5.9%
Other operating income	16	15	(6.3%)
Sales	8,543	9,759	14.2%
Personnel costs	(1,498)	(1,505)	0.5%
Other operating expenses	(682)	(813)	19.2%
Net change in technical provisions for insurance business and other claims expenses	(5,734)	(6,728)	17.3%
Depreciation & amortization	(145)	(151)	4.1%
EBIT	484	562	16.1%
Net interest income / (Expense)	2	6	n. m.
Profit before tax	486	568	16.9%
Tax	(175)	(201)	14.9%
Net income	311	367	18.0%

Group Key Balance Sheet Items – 1Q 2016

€m	FY 2015	1Q 2016	Var.%
Balance sheet
Cash & Equivalents	3,142	3,093	(1.6%)
BancoPosta related Cash	3,161	2,822	(10.7%)
Receivables & Inventory	2,158	2,261	4.8%
Financial Assets	160,090	168,279	5.1%
Tangible and Intangible Assets	2,796	2,705	(3.3%)
Other	4,489	4,583	2.1%
Total Assets	175,836	183,743	4.5%
Trade Payables	1,453	1,342	(7.6%)
Financial liabilities	57,478	59,454	3.4%
Technical Reserves	100,314	106,078	5.7%
Other	6,933	7,232	4.3%
Total Liabilities	166,178	174,106	4.8%
Shareholders capital	1,306	1,306	-
Reserves	8,352	8,331	(0.3%)
Totale Equity	9,658	9,637	(0.2%)
Total Liabilities & Equity	175,836	183,743	4.5%

Group Cash Flow Statement – 1Q 2016

€m	1Q 2015	1Q 2016	Var.%
Cashflow statement
Net income	311	367	18.0%
Depreciation and amortization	145	151	4.1%
Net provisions for risks and charges	125	115	(8.0%)
(Use of Provisions for risks and charges)	(74)	(106)	43.2%
Net change in employee termination benefits and pension plans	(25)	(33)	32.0%
Other	6	10	66.7%
FFO	488	504	3.3%
Change in working capital	487	159	(67.4%)
Cash flow from operations	975	663	(32.0%)
Capital expenditures	(59)	(62)	5.1%
Disposals	1	2	n.m.
Cash flow from investments	(58)	(60)	(3.4%)
Cash Flow from financial assets and liabilities	(1,504)	(652)	56.6%
Shareholders' transactions	0	0	n.m.
Cash flow from financing	(1,504)	(652)	56.6%
Net change in cash	(587)	(49)	91.7%

€m	FY 2015	1Q 2016	Var.%
Working Capital
Trade receivables	2,346	2,361	0.6%
Inventories	134	134	-
Other receivables and assets	3,200	3,357	4.9%
Current tax receivables	72	73	1.4%
Trade payables	(1,453)	(1,342)	(7.6%)
Other liabilities	(2,945)	(3,192)	8.4%
Current tax liabilities	(53)	(260)	n.m.
Working Capital	1,301	1,131	(13.1%)
Deferred tax asset	623	643	3.2%
Deferred tax liabilities	(1,177)	(1,038)	(11.8%)
Working Capital and deferred taxes	747	736	(1.5%)

Change in Group Working Capital – 1Q 2016

€m	1Q 2015	1Q 2016	Var.%
Change in Working Capital per cash flow statement
Trade receivables	372	(15)	n.m.
Inventories	2	--	n.m.
Other receivables and assets	257	(157)	n.m.
Current tax receivables	6	(1)	n.m.
Trade payables	(81)	(111)	37.0%
Other liabilities	(239)	247	n.m.
Current tax liabilities	191	207	8.4%
Deferred tax assets	45	(20)	n.m.
Deferred tax liabilities	318	(139)	n.m.
Total	871	11	(98.7%)
Financial Income on discounted receivables	3	2	(33.3%)
Net write-downs and loss on receivables	(3)	(7)	n.m.
Deferred tax on fair value changes and TFR actuarial incom	(384)	153	n.m.
Adjustments (non monetary items and shareholders' transactions)	(384)	148	n.m.
Change in Working Capital per cash flow statement	487	159	(67.4%)

€m	1Q 2016	€m
Assets		Equity adn Liabilities
Property, plant and equipment	2,084	Totale Equity
Investment property	59
Intangible assets	414	Provisions for risks and charges
1 Investments	1,887	Employee termination benefits and pension plans
Financial assets	1,061	Financial liabilities
Trade receivables	4	Deffered tax liabilities
Deferred tax assets	449	Other liabilities
Other receivables and assets	160
Total Non-current assets	6,118	Total Non-current liabilities
Inventories	130	Provisions for risks and charges
Trade receivables	1,987	Trade payables
Current tax assets	98	Current tax liabilities
Other receivables and assets	272	Other liabilities
Financial assets	438	Financial liabilities
Cash and cash equivalents	1,446
Total Current assets	4,371	Total Current liabilities
Total Assets	10,489	Totale Equity and Liabilities

Assets Equity adn Liabilities Property, plant and equipment 2,084 Totale Equity Investment property 59 Intangible assets 414 Provisions for risks and charges 1 Investments 1,887 Employee termination benefits and pension plans Financial assets 1,061 Financial liabilities Trade receivables 4 Deffered tax liabilities Deferred tax assets 449 Other liabilities Other receivables and assets 160 Total Non-current assets 6,118 Total Non-current liabilities Inventories 130 Provisions for risks and charges Trade receivables 1,987 Trade payables Current tax assets 98 Current tax liabilities Other receivables and assets 272 Other liabilities Financial assets 438 Financial liabilities Cash and cash equivalents 1,446 Total Current assets 4,371 Total Current liabilities Total Assets 10,489 Totale Equity and Liabilities	€m	1Q 2016	€m	1Q 2016
				2,710
				262
				1,304
				1,257
				23
				70
				2,916
				735
				1,208
				67
				1,242
				1,611
				4,863
				10,489

1. It includes investments accounted for at cost in other sectors

€m	2 FY 2015	1Q 2016	Var.%
Net Debt - Mail & Parcels and Other Services
Cash and Cash Equivalents	1,332	1,455	9.2%
Current Financial Assets	169	167	(1.2%)
Short term debt	(516)	(12)	(97.7%)
Current part of long term debt	(15)	(20)	33.3%
Other current financial liabilities	(21)	(18)	(14.3%)
Current Financial Position	(552)	(50)	(90.9%)
Current Net Financial Position	949	1,572	65.6%
Long term debt	(400)	(400)	-
Bonds	(798)	(797)	(0.1%)
Other non current financial liabilities	(56)	(63)	12.5%
Non Current Financial Position	(1,254)	(1,260)	0.5%
Net Financial Position	(305)	312	n.m.
Non curernt financial assets	553	661	19.5%
Net Financial Position - Mail & Parcel and Other Sercvices	248	973	n.m.
Intersegment financial receivables	674	671	(0.4%)
Intersegment financial payables	(615)	(1,526)	n.m.
1 Net Financial Position (net of intersegments)	307	118	(61.6%)

1. Including a Net Financial Position of Other Services (€41m for the first quarter 2016 and €38m in 2015)

2. Poste Tributi previously included in Mail & Parcel sector has been reclassified to Financial Services

€m	1Q 2015	1Q 2016	Var.%
P&L
Total revenue	1,632	1,710	4.7%
o/w Market revenue	1 497 ,	1 556 ,	3 9%
o/w Intercompany revenue	135	154	13 6%
Personnel costs	(31)	(33)	4.8%
Other operating expenses	(1 351) ,	(1 410) ,	4.4%
EBITDA	250	267	6.7%
EBITDA margin	15 3%	15 6%
Depreciation and amortisation	(0)	(0)	n. m.
EBIT	250	267	6.8%
EBIT margin	3% 15	6% 15

€m	1Q 2015	1Q 2016	Var.%
P&L
Total revenue	5,999	7,210	20.2%
o/w Market revenue	5 999 ,	7 210 ,	20 2%
o/w Intercompany revenue	0	0	28 3%
Personnel costs	(7)	(10)	45.3%
Other operating expenses	(5 893) ,	(7 088) ,	20.3%
EBITDA	99	111	12.6%
EBITDA margin	1 6%	1 5%
Depreciation and amortisation	(2)	(4)	65.1%
EBIT	97	108	11.3%
EBIT margin	6% 1	5% 1

€m	1Q 2015	1Q 2016	Var.%
P&L
Total revenue	2,257	2,288	1.4%
o/w Market revenue	983	936	(4 8%)
o/w Intercompany revenue	1 274 ,	1 352 ,	6 1%
Personnel costs	(1 454) ,	(1 457) ,	0.2%
Other operating expenses	(549)	(516)	(6.0%)
EBITDA	254	315	24.0%
EBITDA margin	11 3%	13 8%
Depreciation and amortisation	(133)	(138)	3.8%
EBIT	121	177	46.3%
EBIT margin	4% 5	7% 7

Other Services – Poste Mobile Key Financials

€m	1Q 2015	1Q 2016	Var.%
P&L
Total revenue	86	79	(7.2%)
o/w Market revenue	64	58	(10 .0%)
o/w Intercompany revenue	22	22	1.0%
Personnel costs	(6)	(5)	(6.6%)
Other operating expenses	(56)	(54)	(2.2%)
EBITDA	24	20	(18.8%)
EBITDA margin	28.6%	25.0%
Depreciation and amortisation	(9)	(9)	7.1%
EBIT	16	10	(33.2%)
EBIT margin	18.3%	13.2%
Non-operating income/(expenses)	(0)	(0)	157.8%
Profit before taxes	16	10	(34.2%)
Taxes	(5)	(3)	(39.3%)
Profit after taxes	10	7	(31.7%)
Cash flow statement
FFO	20	17	(14.2%)
Cash flow from investments	(3)	(6)	(75.7%)
Net change in cash	(10)	(8)	22.1%
Other key data
Average number of users (sim cards -#k)	3,354	3,612	7.7%
ARPU (€)	5.3	4.8	(10.3%)

Insurance and Asset Management – Cost Structure and Profitability at Divisional Level

Insurance and Asset Management – Operating Costs (€m)

Intersegment Costs Other

Insurance and Asset Management – Operating Profit (€m)1

1. Includes intersegment revenues

Segment Flow Description – 1Q 2016 (€m)

1. Including external costs, and D&A

2. Including Other Services (Poste Mobile)

Poste Italiane Investor Relations Office

Head of IR Luca Torchia

Tel: +39 06 5958 2273

Email: investor.relations@posteitaliane.it

Poste Italiane, Viale Europa 175, 00144, Rome, Italy

www.posteitaliane.it/en/investor-relations

Disclaimer

This presentation contains certain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Poste Italiane S.p.A.'s current expectations and projections about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Poste Italiane S.p.A. to control or estimate precisely, including changes in the regulatory environment, future market developments, fluctuations in the price and availability of fuel and other risks. You are cautioned not to place undue reliance on the forward-looking statements contained herein, which are made only as of the date of this presentation. Poste Italiane S.p.A. does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation. This presentation does not constitute a recommendation regarding the securities of the Company. This presentation does not contain an offer to sell or a solicitation of any offer to buy any securities issued by Poste Italiane S.p.A. or any of its subsidiaries. Pursuant to art. 154-BIS, par. 2, of the Unified Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at Poste Italiane S.p.A., Luciano Loiodice, declares that the accounting information contained herein corresponds to document results, books and accounting records.