Poste Italiane

Earnings Release • Mar 22, 2016

FY 2015 Results

March 22, 2016

PROFITABLE, CASH GENERATIVE SERVICE INFRASTRUCTURE

FY 2015: Figures Highlights

1. Net of Intersegment revenues

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

Investor Relations

4

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

8

BancoPosta Regulatory Framework and Capital Position

BancoPosta regulatory framework aligned to Basel III standards effective December 2014

Key regulatory constraints: 8% min. CET1 ratio2 / 3% min. leverage ratio

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

Focus on Mail & Parcels (2/2) – Revenues, Cost Structure and Profitability

Proposed DPS 34 Euro/CENTS

Group Capital Expenditures

Capex Breakdown by Division (%)

17

Cash Generation Profile (€m)

2015

2014

Investor Relations

1. Calculated as: Net Income + D&A + Net provisions for risks and charges – Use of Provisions for risks and charges + Net change in employee termination benefits and pension plans + Other (Details in Appendix)

2. Including goodwill and fair value of the technology platform of SDS acquired by PosteVita (about €m 20)

18

How the year started – main items

• Robust inflows towards postal savings products and current accounts
• Continuing growth in insurance; new offer in asset management
• In Mail & Parcels: deployment of the new delivery process

Minimum 80% pay-out confirmed for FY 2016

Appendix

€m	FY 2014	FY 2015	Var.%
P&L
Revenue from sales and services	9,150	8,810	(3.7%)
Insurance premium revenue	15,472	18,197	17.6%
Other income from financial and insurance activities	3,772	3,657	(3.0%)
Other operating income	118	75	(36.9%)
Sales	28,512	30,739	7.8%
Personnel costs	(6,229)	(6,151)	(1.3%)
Other operating expenses	(3,038)	(3,444)	13.3%
Net change in technical provisions for insurance business and other claims expenses	(17,883)	(19,683)	10.1%
Depreciation & amortization	(671)	(581)	(13.4%)
EBIT	691	880	27.4%
Net interest income / (Expense)	6	53	n.m.
Profit before tax	697	933	33.9%
Tax	(485)	(381)	(21.4%)
Net income	212	552	160.8%

Group Key Balance Sheet Items – FY 2015

€m	FY 2014	FY 2015	Var.%
Balance sheet
Cash & Equivalents	1,704	3,142	84.4%
BancoPosta related Cash	2,873	3,161	10.0%
Receivables & Inventory	2,751	2,158	(21.6%)
Financial Assets	142,689	160,090	12.2%
Tangible and Intangible Assets	2,892	2,796	(3.3%)
Other	6,051	4,489	(25.8%)
Total Assets	158,960	175,836	10.6%
Trade Payables	1,422	1,453	2.2%
Financial liabilities	55,359	57,478	3.8%
Technical Reserves	87,220	100,314	15.0%
Other	6,541	6,933	6.0%
Total Liabilities	150,542	166,178	10.4%
Shareholders capital	1,306	1,306	-
Reserves	7,112	8,352	17.4%
Totale Equity	8,418	9,658	14.7%
Total Liabilities & Equity	158,960	175,836	10.6%

€m	FY 2014	FY 2015	Var.%
Cashflow statement
Net income	212	552	n.m.
Depreciation and amortization	671	581	(13.4%)
Net provisions for risks and charges	412	454	10.2%
(Use of Provisions for risks and charges)	(245)	(392)	60.0%
Net change in employee termination benefits and pension plans	(77)	(65)	(15.6%)
(Gains) / Losses on disposals	2	0	n.m.
Other	87	(31)	n.m.
FFO	1,062	1,099	3.5%
Change in working capital	(429)	2,162	n.m.
Cash flow from operations	633	3,261	n.m.
Capital expenditures	(437)	(488)	11.7%
Net change in subsidiaries and associates	5	(211)	n.m.
Disposals	9	5	(44.4%)
Cash flow from investments	(423)	(694)	(64.1%)
Dividend paid	(500)	(250)	(50.0%)
Cash Flow from financial assets and liabilities	549	(1,414)	n.m.
Cash flow from financing	49	(1,129)	n.m.
Net change in cash	259	1,438	n.m.

€m	FY 2014	FY 2015	Var.%
Working Capital
Trade receivables	3,761	2,346	(37.6%)
Inventories	139	134	(3.6%)
Other receivables and assets	3,540	3,258	(8.0%)
Deferred tax assets	702	623	(11.3%)
Current tax receivables	659	72	(89.1%)
Trade payables	(1,422)	(1,453)	2.2%
Other liabilities	(2,658)	(2,945)	10.8%
Deferred tax liabilities	(1,047)	(1,177)	12.4%
Current tax liabilities	(24)	(53)	n.m.
Working Capital	3,650	805	(77.9%)

Change in Group Working Capital – FY 2015

€m	FY 2014	FY 2015	Var.%
Change in Working Capital
Trade receivables	(14)	1,415	n.m.
Inventories	7	5	(28.6%)
Other receivables and assets	(1,034)	282	n.m.
Deferred tax assets	(29)	79	n.m.
Current tax receivables	59	587	n.m.
Trade payables	(99)	31	n.m.
Other liabilities	256	287	12.1%
Deferred tax liabilities	542	130	(76.0%)
Current tax liabilities	(77)	29	n.m.
Total	(389)	2,845	n.m.
Financial Income on discounted receivables	25	16	(36.0%)
Net write-downs and loss on receivables	(71)	42	n.m.
Deferred tax on fair value changes and TFR actuarial income	(543)	(210)	(61.3%)
Cancellation of shareholder receivables CE 16/07/08 (Legge di stabilità 2015)	535	(535)	n.m.
Reinsurers' technical reserves	14	4	(71.4%)
Adjustments (non monetary items and shareholders'	(40)	(683)	n.m.
Change in Working Capital per cash flow statement	(429)	2,162	n.m.

€m	FY 2015	€m	FY 2015
Assets		Equity adn Liabilities
Property, plant and equipment	2,144	Totale Equity	2,604
Investment property	61
Intangible assets	439	Provisions for risks and charges	295
Investment accounted for using the equity method	1,885	Employee termination benefits and pension plans	1,330
Financial assets	954	Financial liabilities	1,251
Trade receivables	5	Deffered tax liabilities	25
Deferred tax assets	446	Other liabilities	72
Other receivables and assets	157
Total Non-current assets	6,091	Total Non-current liabilities	2,973
Inventories	131	Provisions for risks and charges	696
Trade receivables	1,823	Trade payables	1,301
Current tax assets	97	Current tax liabilities	0
Other receivables and assets	293	Other liabilities	1,423
Financial assets	436	Financial liabilities	1,190
Cash and cash equivalents	1,316
Total Current assets	4,096	Total Current liabilities	4,610
Total Assets	10,187	Totale Equity and Liabilities	10,187

$\epsilon$ m	FY 2015
Equity adn Liabilities
Totale Equity	2,604
	295
Provisions for risks and charges
Employee termination benefits and pension plans	1,330
Financial liabilities	1,251
Deffered tax liabilities	25
Other liabilities	72
Total Non-current liabilities	2,973
Provisions for risks and charges	696
Trade payables	1,301
Current tax liabilities	$\overline{0}$
Other liabilities	1,423
Financial liabilities	1,190
Total Current liabilities	4,610
Totale Equity and Liabilities	10,187

€m	FY 2014	FY 2015	Var.%
Net Debt - Mail & Parcels and Other Services
Cash and Cash Equivalents	320	1,332	n.m.
Current Financial Assets	183	169	(7.7%)
Short term debt	(1,351)	(516)	(61.8%)
Current part of long term debt	(13)	(14)	7.7%
Other current financial liabilities	(24)	(21)	(12.5%)
Current Financial Position	(1,388)	(551)	(60.3%)
Current Net Financial Position	(885)	950	n.m.
Long term debt	(400)	(400)	-
Bonds	(796)	(798)	0.3%
Other non current financial liabilities	(66)	(56)	(15.2%)
Non Current Financial Position	(1,262)	(1,254)	(0.6%)
Net Financial Position	(2,147)	(304)	(85.8%)
Non curernt financial assets	654	553	(15.4%)
Net Financial Position - Mail & Parcel and Other Sercvices	(1,493)	249	n.m.
Intersegment financial receivables	811	668	(17.6%)
Intersegment financial payables	(769)	(615)	(20.0%)
1 Net Financial Position (net of intersegments)	(1,451)	302	n.m.

Other Services – Poste Mobile Key Financials

€m	FY 2014	FY 2015	Var.%
P&L
Total revenue	325	334	2.5%
o/w Market revenue	240	242	1 0%
o/w Intercompany revenue	86	91	6 8%
Personnel costs	(25)	(22)	(12.4%)
Other operating expenses	(239)	(242)	1.5%
EBITDA	62	70	12.7%
EBITDA margin	0% 19	9% 20
Depreciation and amortisation	(48)	(39)	(20.0%)
EBIT	14	31	127.9%
EBIT margin	4 2%	9 3%
Non-operating income/(expenses)	(0)	(1)	114.4%
Profit before taxes	13	30	128.4%
Taxes	(5)	(11)	109.8%
Profit after taxes	8	19	141.4%
Cash flow statement
FFO	57	56	(2.1%)
Cash flow from investments	(51)	(29)	43.2%
Net change in cash	(6)	1	118.6%
Other key data
Average number of users (sim cards -#k)	3,098	3,471	12.1%
ARPU (€)	5.7	5.2	(8.6%)

1. Includes intersegment revenues

Insurance Services – Cost Structure and Profitability at Divisional Level

Cost of Goods Sold Labour Costs Intersegment Costs Other

Segment Flow Description – FY 2015 (€m)

1. 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.