Poste Italiane

Earnings Release • Aug 2, 2018

POSTE ITALIANE 2Q 2018 FINANCIAL RESULTS

Rome, 2 August, 2018

EXECUTIVE SUMMARY

BUSINESS REVIEW

CLOSING REMARKS

Q&A

Net profit at 250m in 2Q 2018, or 735m in 1H 2018 up +44% YoY

All business units focusing on Deliver 2022 implementation

Leverage of commercial distribution already bearing fruits

Significantly improved product offering for our customers

Efficiencies achieved across all segments

€ m unless otherwise stated

1. Excludes net capital gains on investment portfolio, early retirement incentives and real estate funds provisions.

OPERATING PROFITABILITY PROGRESSION

EBIT up, mainly supported by Mail, Parcel & Distribution Underlying operating profitability improving across all business units

€ m unless otherwise stated

DELIVER 2022 – PROGRESS UPDATE

All business units focusing on Deliver 2022 implementation

MAIL, PARCEL AND DISTRIBUTION KEY INITIATIVES

Deliver 2022 ongoing implementation

JOINT DELIVERY MODEL

• Execution started April 16th
• 226 delivery centres implemented the new model (65% target)
• More than 1,700 municipalities already reorganized
• Flawless execution on track with plan

Large Metro areas (8% of pop., 600 daily items/ km2)		Urban areas (68% of pop., 80 daily items/ km2)		Rural/ regulated areas (24% of pop., 10 daily items/ km2)
• Daily morning delivery (standard mail)	•	Alternate day morning • delivery (standard mail)		Alternate day delivery
• Daily additional afternoon delivery (parcels and registered)	•	Daily additional afternoon delivery (parcels and registered)
• delivery Weekend	•	Weekend delivery

Mail & Parcel • E-commerce agreement with FIT'1 POS for parcels and ecommerce services • Network transformation and business reinforcing ongoing • Offer innovative/ premium services across Italy (evening and Sunday deliveries) • Offer competitive and efficient services leveraging on Joint LATEST AGREEMENTS SIGNED PARTNER KEY ITEMS RATIONALE Further strengthen Poste Italiane's positioning to Enhance customer access to an enlarged postal network, by offering an extended reach and choice of options

Delivery Model, proprietary cargo airline and express

courier SDA

Parcel

1. Federazione Italiana Tabaccai, association of licensed Italian tobacconists offering a range of services.

participate in ecommerce growth

EXECUTIVE SUMMARY

BUSINESS REVIEW

CLOSING REMARKS

Q&A

MAIL, PARCEL & DISTRIBUTION ONGOING REFOCUS IN LINE WITH PLAN

Parcel revenues mitigating mail slowdown, profitability supported by efficiencies

€ m unless otherwise stated

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

MAIL, PARCEL & DISTRIBUTION ONGOING REFOCUS

Continued shift from Mail to Parcels with B2C +40% in 1H 2018 including packets

1. Includes: Multichannel services, Editorial services and Postel volumes; 2. Includes: International parcels and partnership with other logistic operators.

AVERAGE PRICE INDEX (base 100) Other2 8 8 ^{13 16} 1 5 1 5 2Q 2017 2Q 2018 27 30 0% +23% 0% 0% ^{100 97} 2Q 2017 2Q 2018 +11.1% 100 96 1H 2017 1H 2018 15 15 ^{26 32} 3 11 3 9 1H 2017 1H 2018 ^{55 59} 0% +23% 0% -18% +4 +7.3%

KEY HIGHLIGHTS

• Mail volumes decrease mainly related to lower margins products (e.g. direct marketing), while average prices increase in 1H 2018 thanks to positive volume mix
• Parcel volumes boosted by 23% increase from B2C
• Including international packets booked in Mail, total parcel volumes up 16% and B2C volumes up 40% in 1H 2018; excluding international packets, mail volumes down 4% in 1H 2018

CONTINUED GROWTH IN PAYMENTS, MOBILE & DIGITAL

Strong progression of revenues and operating profitability

€ m unless otherwise stated

1. Includes fees from 'bollettino' cashed-in, tax payments slips and money transfer.

GROWTH IN PAYMENTS, MOBILE & DIGITAL

Confirmed positive trends of commercial KPIs across all business lines

1. An innovative electronic tool associated to a single customer, which is enabled through a mobile app to authorize payment transactions.

POSTE ITALIANE DIGITAL FOOTPRINT

Robust growth in digital use

REGISTERED ONLINE USERS STOCK

GROWTH IN CONSUMER FINANCIAL TRANSACTIONS

# m

GROWTH IN TRACK&TRACE SEARCHES3

FINANCIAL SERVICES IMPROVING IN LINE WITH PLAN

Sustainable revenues mitigating lower capital gains

€ m unless otherwise stated

1. Includes revenues from electronic money services, fees for collection and payment services; 2. Includes revenues from custody accounts, credit cards, other revenues from distribution of third parties products. Comparable 2017 figures, adjusted for IFRS 15 and MCC-BdM disposal, are equal to 48 € /m for 2Q and 100 € /m for 1H; 3. Gross capital gains netted by minus; 4. Based on adjusted revenues from capital gains, IFRS 15 effect and MCC-BdM.

GROUP TOTAL FINANCIAL ASSETS CONTINUED INCREASE

Positive net inflows driven by life insurance, deposits and mutual funds

€ bn unless otherwise stated

KEY HIGHLIGHTS

• Total financial assets increased by 4bn in 1H vs Dec-2017, with positive net inflows of 4.4bn:
• Postal savings negative net inflows significantly improving, thanks to new commercial initiatives, while maintaining positive inflows for all other products
• Insurance products 4.9bn of which 0.4bn unit linked and multiasset Class III
• Deposits 3.7bn supported by Public Administration accounts and resilient retail base

• Mutual funds 0.3bn supported by successful distribution agreements

• Deposits do not include Repo and Poste Italiane liquidity.

POSTAL SAVINGS IMPROVING, IN LINE WITH PLAN

Net flows improving and well positioned for a seasonal pick up in 2H 2018

€ m unless otherwise stated

1. Average postal savings reported according to the remuneration scheme agreed with CDP, which excludes interests accrued year-to-date and based on a maturity of postal saving books adjusted for an estimate of potential early redemptions.

CURRENT ACCOUNTS AVERAGE VOLUMES AT A SOUND 58.0BN

Interest income up thanks to higher volumes offsetting lower yields

€ m unless otherwise stated

1. Includes current accounts, time deposits and repurchase agreements. Not including Poste Italiane's liquidity; 2. Entirely invested in floating rate deposits c/o MEF; 3. Includes business current accounts, PostePay business and other customers debt ; 4. Average yield calculated as interest income and realised net capital gains on average total financial assets; 5. Excludes derivatives.

ASSET MANAGEMENT PROGRESSING

Class III and new products supporting assets under management and fee generation

€ m unless otherwise stated

EoP ASSETS UNDER MANAGEMENT EVOLUTION

KEY HIGHLIGHTS

• Net inflows of mutual funds +0.3bn in 1H 2018, growing at a faster pace than the market thanks to the launch of new successful products
• Net inflows of class III and Unit linked products strongly up, in line with Deliver 2022 guidelines
• Running management fees increasing YoY faster than the assets under management

LOANS AND MORTGAGES: STRONGLY IMPROVED OFFER TO CUSTOMERS

Volumes and revenues strongly up thanks to commercial focus

€ m unless otherwise stated

1. Adjusted revenues refers to the restatement of 2017 revenues according to the accounting principle IFRS 15 (adopted from 1Q 2018) and netted from MCC-BdM.

INSURANCE SERVICES OPERATING RESULTS IN LINE WITH DELIVER 2022

Ongoing rebalance from traditional life to Private Pension Plan and P&C

€ m unless otherwise stated

INSURANCE GROSS WRITTEN PREMIUMS MIX UPGRADING

Changing mix within life products, higher GWP from Private Pension Plan and P&C

€ m unless otherwise stated

1. Includes Life Protection.

SOLID NET INFLOWS SUPPORTING HIGHER NET TECHNICAL PROVISIONS

Positive net inflows in 1H 2018, more than offsetting lower unrealised gains related to weak market conditions

€ m unless otherwise stated

1. Includes non-life technical reserves and net of re-insurance reserves; 2. Includes Life Protection; 3. Includes interests, upfront fees and other minor items.

POSTEVITA GROUP: SOLID SOLVENCY RATIO

More stable solvency ratio after the impact of market volatility in 2Q 2018

€ m unless otherwise stated

KEY HIGHLIGHTS

• Solvency ratio continued to be solid and above risk tolerance levels
• Solvency II ratio at 185% in Jun-18, mainly due to market volatility in 2Q 2018

• More stable solvency ratio: reduced sensitivity to Government spread thanks to increase of the volatility adjustment

• Includes impacts from underwriting risk, operational risk and diversification

GROUP COSTS DOWN Continued cost discipline confirming Deliver 2022 trajectory

€ m unless otherwise stated

1. Includes other expenses from financial activities, capitalised costs and expenses, and other other operating costs; 2. Excluding BdM-MCC (18 €/m in 2Q 2017 and 33 €/m in 1H 2017); real estate funds provisions (59 €/m in 2Q 2017, 17 €/m in 2Q 2018, 65 €/m in 1H 2017 and 17 €/m in 1H 2018) and provision for the early repayment of financial products (6 €/m in 2Q 2017 and 12 €/m in 1H 2017).

HR COSTS DOWN THANKS TO MAIL, PARCEL & DISTRIBUTION RE-ORGANIZATION

Confirmed track record to manage reduction of headcounts

KEY HIGHLIGHTS

• HR costs per FTE at 41.8 thousand, in line with 2018 target
• Average FTE reduction of c.2,700 YoY, in line with last 3 years
• Labour costs/FTE benefitting from non-recurring items, costs in line with FY 2018 target

MAIL, PARCEL & DISTRIBUTION NET CASH POSITION

Seasonal trend affecting net cash position

€ m unless otherwise stated

1. Cash-out for the capital increase in Anima.

EXECUTIVE SUMMARY

BUSINESS REVIEW

CLOSING REMARKS

Q&A

Strong 1H 2018 net profit thanks to improved operating results

Renewed commercial focus supporting sustainable profitability

Cost discipline measures under way

Deliver 2022 well on track, with all business units focused on execution

EXECUTIVE SUMMARY

BUSINESS REVIEW

CLOSING REMARKS

Q&A

APPENDIX

BANCOPOSTA: AN ASSET GATHERER, WITH A LOW RISK BALANCE SHEET

Solid capital ratios including the already announced capital increase1

€ m unless otherwise stated

1. Capital increase of 210 €/m to be approved by the AGM on 29 May as already announced; 2. 10.50% Min. CET1 ratio required to distribute earnings (transitionally reduced to 9.25% in 2017 and 9.875% in 2018).

€ m unless otherwise stated

1. Includes Life Protection

Net inflows from mutual funds, unit linked and multiasset Class III insurance products

€ m unless otherwise stated

INSURANCE SERVICES: BREAKDOWN OF PORTFOLIO

Details on portfolio and sensitivity

INVESTMENT PORTFOLIO DURATION

	Jun-17	Dec-17	Jun-18	Var. YoY
Unrealised gains (€/m)	7,666	8,225	3,340	-4,325
Minimum guaranteed return (Class I) (%)	0.93%	0.88%	0.84%	-9bps
Class I return (%)	2.93%	3.03%	2.76%	-17bps

1. Includes also liquidity, UCITS funds and shares with ≤5yrs duration.

INSURANCE GROSS WRITTEN PREMIUMS MIX UPGRADING

Changing mix within life products, higher GWP from Private Pension Plan and P&C

€ m unless otherwise stated

1. Includes Life Protection

€m	2Q 2017	2Q 2018	Var.	Var.%	1H 2017	1H 2018	Var.	Var.%
Total revenues	2,665	2,545	-120	-5%	5,498	5,429	-69	-1%
of which:
Mail, Parcel and Distribution	898	863	-35	-4%	1,812	1,761	-51	-3%
Payments, Mobile and Digital	148	164	16	11%	278	307	29	10%
Financial Services	1,248	1,157	-91	-7%	2,710	2,676	-34	-1%
Insurance Services	371	361	-10	-3%	698	685	-13	-2%
Total costs	2,344	2,195	-149	-6%	4,651	4,376	-275	-6%
of which:
Total personnel expenses	1,454	1,416	-38	-3%	2,934	2,846	-88	-3%
of which personnel expenses	1,452	1,403	-49	-3%	2,930	2,827	-103	-4%
of which early retirement incentives	2	13	11	n.m.	4	19	15	375%
Other operating costs	751	639	-112	-15%	1,436	1,258	-178	-12%
Depreciation, amortisation and impairments	139	140	1	1%	281	272	-9	-3%
EBIT	321	350	29	9%	847	1,053	206	24%
EBIT Margin	12%	14%			15%	19%
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method	-81	14	95	117%	-75	22	97	-129%
Profit before tax	240	364	124	52%	772	1,075	303	39%
Income tax expense	81	114	33	41%	262	340	78	30%
Profit for the period	159	250	91	57%	510	735	225	44%

MAIL, PARCEL & DISTRIBUTION PROFIT & LOSS

€m	2Q 2017	2Q 2018	Var.	Var.%	1H 2017	1H 2018	Var.	Var.%
Segment revenue	898	863	-35	-4%	1,812	1,761	-51	-3%
Intersegment revenue	1,119	1,086	-33	-3%	2,453	2,455	2	0%
Total revenues	2,017	1,949	-68	-3%	4,265	4,216	-49	-1%
Personnel expenses	1,406	1,370	-36	-3%	2,838	2,760	-78	-3%
of which personnel expenses	1,406	1,364	-42	-3%	2,837	2,749	-88	-3%
of which early retirement incentives	0	6	6	n.m.	1	11	10	n.m.
Other operating costs	524	508	-16	-3%	1,058	985	-73	-7%
Intersegment costs	19	20	1	5%	34	35	1	3%
Total costs	1,949	1,898	-51	-3%	3,930	3,780	-150	-4%
EBITDA	68	51	-17	-25%	335	436	101	30%
Depreciation, amortisation and impairments	128	130	2	2%	260	252	-8	-3%
EBIT	-60	-79	-19	-32%	75	184	109	145%
EBIT MARGIN	-3%	-4%			2%	4%
Finance income/(costs)	-89	-6	83	93%	-97	-14	83	86%
Profit/(Loss) before tax	-149	-85	64	43%	-22	170	192	n.m.
Income tax expense	-42	-25	17	40%	5	56	51	n.m.
Profit for the period	-107	-60	47	44%	-27	114	141	n.m.

PAYMENTS, MOBILE & DIGITAL PROFIT & LOSS

€m	2Q 2017	2Q 2018	Var.	Var.%	1H 2017	1H 2018	Var.	Var.%
Segment revenue	148	164	16	11%	278	307	29	10%
Intersegment revenue	82	83	1	1%	168	165	-3	-2%
Total revenues	230	247	17	7%	446	472	26	6%
Personnel expenses	7	8	1	14%	15	16	1	7%
of which personnel expenses	7	8	1	14%	15	16	1	6%
of which early retirement incentives	0	0	0	0%	0	0	0	0%
Other operating costs	46	45	-1	-2%	85	85	0	0%
Intersegment costs	132	144	12	9%	240	258	18	8%
Total costs	185	197	12	6%	340	359	19	6%
EBITDA	45	50	5	11%	106	113	7	7%
Depreciation, amortisation and impairments	5	6	1	20%	11	12	1	9%
EBIT	40	44	4	10%	95	101	6	6%
EBIT MARGIN	17%	18%			21%	21%
Finance income/(costs)	2	-1	-3	-138%	2	0	-2	-88%
Profit/(Loss) before tax	42	43	1	2%	97	101	4	4%
Income tax expense	11	9	-2	-18%	27	24	-3	-11%
Profit for the period	31	34	3	10%	70	77	7	10%

€m	2Q 2017	2Q 2018	Var.	Var.%	1H 2017	1H 2018	Var.	Var.%
Segment revenue	1,248	1,157	-91	-7%	2,710	2,676	-34	-1%
Intersegment revenue	261	254	-7	-3%	519	515	-4	-1%
Total revenues	1,509	1,411	-98	-6%	3,229	3,191	-38	-1%
Personnel expenses	32	28	-4	-13%	63	50	-13	-21%
of which personnel expenses	30	22	-8	-27%	60	43	-17	-28%
of which early retirement incentives	2	6	4	215%	3	7	4	143%
Other operating costs	158	66	-92	-58%	248	147	-101	-41%
Depreciation, amortisation and impairments	1	0	-1	-100%	1	0	-1	-100%
Intersegment costs	1,182	1,148	-34	-3%	2,590	2,586	-4	0%
Total costs	1,373	1,242	-131	-10%	2,902	2,783	-119	-4%
EBIT	136	169	33	24%	327	408	81	25%
EBIT MARGIN	9%	12%			10%	13%
Finance income/(costs)	1	4	3	300%	3	7	4	133%
Profit/(Loss) before tax	137	173	36	26%	330	415	85	26%
Income tax expense	38	53	15	39%	96	122	26	27%
Profit for the period	99	120	21	21%	234	293	59	25%

INSURANCE SERVICES PROFIT & LOSS

€m	2Q 2017	2Q 2018	Var.	Var.%	1H 2017	1H 2018	Var.	Var.%
Segment revenue	371	361	-10	-2%	698	685	-13	-2%
Intersegment revenue	0	0	0	0%	0	0	0	0%
Total revenues	371	361	-10	-3%	698	685	-13	-2%
Personnel expenses	9	10	1	11%	18	20	2	11%
of which personnel expenses	9	9	0	n.s.	18	19	1	6%
of which early retirement incentives	0	1	0	n.m.	0	1	0	n.s.
Other operating costs	23	20	-3	-13%	45	41	-4	-9%
Depreciation, amortisation and impairments	5	4	-1	-20%	9	8	-1	-11%
Intersegment costs	129	111	-18	-14%	276	256	-20	-7%
Total costs	166	145	-21	-13%	348	325	-23	-7%
EBIT	205	216	11	5%	350	360	10	3%
EBIT MARGIN	55%	60%			50%	53%
Finance income/(costs)	5	17	12	n.s.	17	29	12	71%
Profit/(Loss) before tax	210	233	23	11%	367	389	23	6%
Income tax expense	74	77	4	4%	134	138	5	3%
Profit for the period	136	156	20	15%	233	251	18	8%

OPERATIONAL KPI's		2Q 2017	2Q 2018	∆% YoY	1H 2017	1H 2018	∆% YoY
MAIL PARCELS & DISTRIBUTION	Mail Volumes (#m) Parcels delivered by mailmen(#m) Parcel Volumes (#m) B2C Revenues (€m)	789 6 27 52	759 9 30 66	-3.8% +43.9% +11.1% +26.0%	1,627 13 55 106	1,572 19 59 129	-3.4% 47.3% 7.3% 21.7%
PAYMENTS, MOBILE & DIGITAL	PostePay cards (#m) of which PostePay Evolution cards (#m) Total payment cards transactions (#bn) of which eCommerce transactions (#m) PosteMobile new products (#m) Digital e-Wallets (#m)	17.1 4.0 0.22 38.1 0.280 1.2	18.6 5.4 0.27 43.5 0.307 2.2	+8.8% +35.0% +29.4% +14.2% +9.6% +83.3%	17.1 4.0 0.44 77.8 0.569 1.2	18.6 5.4 0.55 93.2 0.598 2.2	8.8% 35.0% 27.1% 19.2% 5.1% 83.3%
FINANCIAL SERVICES	Total Financial Assets - TFAs (€/bn) Product Sales (#m) Fees per client¹ (€) Unrealized gains (€m)	501 2.0 60 1,424	510 2.0 61 -1,291	+1.8% -1.0% 1.7% n.m.	501 3.9 115 1,424	510 4.2 119 -1,291	1.8% 7.7% 3.5% n.m.
INSURANCE SERVICES	Gross Written Premiums (€m) GWP – Life (€m) GWP – Private Pension Plan (€m) GWP – P&C (€m)	5,196 4,933 229 33	3,576 3,290 238 48	-31.2% -33.3% +3.7% +44.2%	11,131 10,570 487 73	8,912 8,305 510 96	-19.9% -21.4% 4.7% 31.5%

1. Segment revenue financial + insurance, excluding interest income, per client, excluding lower mass segment

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., Tiziano Ceccarani, declares that the accounting information contained herein corresponds to document results, books and accounting records.