Poste Italiane — Earnings Release 2019

Mar 6, 2020

POSTE ITALIANE Q4 & FY19 FINANCIAL RESULTS

Rome, March 6, 2019

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

2019 RESULTS AHEAD OF TARGETS FOR SECOND CONSECUTIVE YEAR VALIDATING STRATEGIC TRANSFORMATION FOSTERED BY INNOVATION

ALL SEGMENTS CONTRIBUTED TO STRONG GROWTH IN OPERATING PROFITABILITY IN 2019

DIVIDEND +5% Y/Y IN LINE WITH DELIVER 2022 COMMITMENT

€ m unless otherwise stated	FY18	FY19	Var.	Var. (%)
REPORTED REVENUES	10,864	11,038	+174	+1.6%
ADJUSTED REVENUES1	10,332	10,659	+327	+3.2%
REPORTED EBIT	1,499	1,774	+275	+18.4%
ADJUSTED EBIT1	1,673	1,765	+92	+5.5%
REPORTED NET PROFIT	1,399	1,342	(56)	(4.0%)
PROFIT1 ADJUSTED NET	1,172	1,258	+86	+7.3%

€ m unless otherwise stated	Q4-18	Q4-19	Var.	Var. (%)
REPORTED REVENUES	2,913	2,949	+36	+1.2%
ADJUSTED REVENUES1	2,801	2,852	+51	+1.8%
REPORTED EBIT	(10)	234	+244	n.m.
ADJUSTED EBIT1	490	477	(13)	(2.7%)
REPORTED NET PROFIT	343	259	(83)	(24.3%)
PROFIT1 ADJUSTED NET	349	367	+18	+5.1%

SEGMENT REVENUES – Q4 & FY19 DIVERSIFIED, SUSTAINABLE REVENUE MIX

€ m unless otherwise stated

MAIL, PARCEL & DISTRIBUTION FINANCIAL SERVICES

PAYMENTS, MOBILE & DIGITAL INSURANCE SERVICES

SEGMENT EBIT – Q4 & FY19 ALL SEGMENTS IN LINE WITH 2019 TARGETS

€ m unless otherwise stated

MAIL, PARCEL & DISTRIBUTION FINANCIAL SERVICES

PAYMENTS, MOBILE & DIGITAL INSURANCE SERVICES

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

MAIL, PARCEL & DISTRIBUTION

PARCEL REVENUE GROWTH MITIGATING ACCELERATED MAIL DECLINE; EBIT IN LINE WITH TARGET

MAIL, PARCEL & DISTRIBUTION: VOLUMES AND PRICING

MAIL DECLINE IN LINE WITH LONG TERM TREND; B2C PARCEL PROGRESSING

FY18 FY19

Q4-18 Q4-19

• Mail volumes down mainly in lower margin products (unrecorded mail, direct marketing)
• Mail tariff benefitting from July-18 repricing
• Parcel volumes boosted by record B2C and sustained B2B growth

• Average parcel tariff down on volume mix; B2C tariff up in a competitive environment, due to higher value delivery services

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

• Including any product mix effect

PAYMENTS, MOBILE & DIGITAL

REVENUES FURTHER INCREASING WITH STRONG CARD PAYMENT GROWTH

FINANCIAL SERVICES UNDERLYING PROFITABILITY LEVERAGING ON IMPROVED DISTRIBUTION CAPABILITIES

€ m unless otherwise stated

GROSS REVENUES¹ REPORTED & ADJ. EBIT AND NET PROFIT KEY HIGHLIGHTS

• Strong revenue growth in areas of strategic focus – insurance, loans & mortgages distribution and asset management
• Postal savings distribution in line with targets
• Reduced weight of capital gains, in line with targets

• EBIT and net profit in line with target

• Figures presented in this slide include net capital gains whereas figures on slide 6 are based on gross capital gains 2. Includes revenues from bollettino, banking accounts related revenues, commissions from INPS and money transfers, Postamat 3. Includes reported revenues from custody accounts, credit cards, other revenues from distribution of third parties products 4. Excluding 120m Anima one-off 5. Refer to slide 24 for further details on adjustments

GROUP TOTAL FINANCIAL ASSETS

1. Including interests accrued

POSITIVE NET INFLOWS AND IMPROVED MIX CONFIRM EFFECTIVE COMMERCIAL STRATEGY

• TFAs up by 22bn y/y, with positive market effect and 2.9bn net inflows:
• Insurance +3.9bn net inflows supported by successful multiclass diversification strategy
• Deposits +2.9bn, benefitting from retail, Postepay and Public Administration inflows
• Mutual funds +0.3bn net inflows
• Postal savings distribution further improving in 2019, successfully addressing a low rate environment with enhanced commercial offer

INSURANCE SERVICES

CONSOLIDATING LEADERSHIP IN LIFE WITH SHIFT TO MULTICLASS AND GROWING P&C

€ m unless otherwise stated

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

INSURANCE SERVICES: SOLVENCY II RATIO

WELL ABOVE 200% MANAGERIAL AMBITION THROUGH THE CYCLE

SOLVENCY II RATIO EVOLUTION

KEY HIGHLIGHTS

• Positive impact from higher risk free rates offsetting BTP-Bund spread increase (+13p.p.)
• Ongoing asset diversification to improve riskreturn supporting lower Solvency II future volatility (-11p.p.)
• One-off impact from regulatory model changes and increase in the variable component of capital charge on equity exposures¹ (-21p.p.)
• Transitional measures provide 36p.p. buffer to address market volatility
• Dividend payout to Poste Italiane confirmed at 50% in 2020

INSURANCE SERVICES: SOLVENCY II RATIO – KEY SENSITIVITIES

WELL POSITIONED TO ADDRESS POTENTIAL MARKET VOLATILITY

• Reduced Solvency II volatility thanks to ongoing managerial actions (e.g. investment and product diversification)
• Excluding transitional measure, Solvency II ratio above managerial ambition through the cycle under stressed scenarios
• Process to develop internal model approved by the BoD

COST DISCIPLINE – FY19 VS FY18

LOWER FTEs DRIVING COST DISCIPLINE, WHILE NON-HR COSTS INCREASE TO SUPPORT GROWTH

WORKFORCE EVOLUTION HEADCOUNT REDUCTION AHEAD OF PLAN TO SUPPORT TRANSFORMATION

AVERAGE HEADCOUNT ('000)

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

POSTE GROUP: Q4 & FY19 ONE-OFFS EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q4-18	Q4-19	EUR m	%	FY18	FY19	EUR m	%
REPORTED REVENUES	2,913	2,949	36	+1%	10,864	11,038	174	+2%
GROSS CAPITAL GAINS ON INVESTMENT PORTFOLIO	0	92			404	353
VISA - IFRS 9 VALUATION	(7)	6			9	25
VISA - CAPITAL GAIN ON SHARE DISPOSAL	0	0			0	1
ANIMA ONE-OFF	120	0			120	0
ADJUSTED REVENUES	2,801	2,852	52	+2%	10,332	10,659	327	+3%
REPORTED COSTS	2,923	2,715	(207)	(7%)	9,366	9,264	(101)	(1%)
CAPITAL LOSSES ON INVESTMENT PORTFOLIO	0	8			25	13
EARLY RETIREMENT INCENTIVES	590	328			619	342
REAL ESTATE FUNDS PROVISIONS	(4)	0			21	0
POSTEL'S GOODWILL IMPAIRMENT	33	0			33	0
VISA - FAIR VALUE HEDGE	0	4			0	15
VISA - IFRS 9 VALUATION	(7)	0			9	0
ADJUSTED COSTS	2,311	2,376	65	+3%	8,659	8,894	235	+3%
REPORTED EBIT	(10)	234	244	n.m.	1,499	1,774	275	+18%
ADJUSTED EBIT	490	477	(13)	(3%)	1,673	1,765	92	+6%
IMPAIRMENTS	62	46			62	46
SIA STAKE REVALUATION	0	88			0	88
REPORTED NET PROFIT	343	259	(83)	(24%)	1,399	1,342	(56)	(4%)
ADJUSTED NET PROFIT	349	367	18	+5%	1,172	1,258	86	+7%

COST DISCIPLINE – Q419 VS Q418

LOWER FTES DRIVING COST DISCIPLINE, WHILE NON-HR COSTS INCREASE TO SUPPORT GROWTH

IFRS 16

€ m unless otherwise stated

COGS

COGS D&A Other

D&A

IFRS 16

IFRS 16

GROWTH IN PAYMENTS, MOBILE & DIGITAL

KEY METRICS STEADILY IMPROVING

MOBILE & LAND LINE, STOCK (# M)

CARD STOCK TOTAL PAYMENT CARD TRANSACTIONS (# BN)

POSTEPAY CONNECT SUBSCRIPTIONS (# K)

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

KEY METRICS STEADILY IMPROVING

# m GROWTH IN CUMULATED APP DOWNLOADS¹ DAILY ONLINE USERS

REGISTERED ONLINE USERS

ELECTRONIC IDENTIFICATION² STOCK

1. Source: App stores (iOS and Android) 2. Electronic identification refers to number of ID outstanding 3. Digital system to monitor parcels' delivery

GROWTH IN CONSUMER FIN. TRANSACTIONS

GROWTH IN TRACK & TRACE SEARCHES3

FINANCIAL SERVICES: Q4 & FY19 ONE-OFFS EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q4-18	Q4-19	EUR m	%	FY18	FY19	EUR m	%
SEGMENT REPORTED REVENUES	1,342	1,376	34	+3%	5,221	5,213	(8)	(0%)
GROSS CAPITAL GAINS ON INV. PORTFOLIO	0	92			404	353
VISA - IFRS 9 VALUATION	(7)	6			9	25
VISA - CAPITAL GAIN ON SHARES DISPOSAL	0	0			0	1
ANIMA - ONE OFF	120	0			120	0
SEGMENT ADJUSTED REVENUES	1,230	1,278	49	+4%	4,689	4,834	145	+3%
INTERSEGMENT REVENUES	161	177	17	+10%	649	712	63	+10%
ADJUSTED TOTAL REVENUES	1,390	1,456	66	+5%	5,338	5,547	209	+4%
REPORTED COSTS	1,228	1,306	77	+6%	5,011	5,052	40	+1%
EARLY RETIREMENT INCENTIVES	1	0			10	2
CAPITAL LOSSES ON INV. PORTFOLIO	0	8			25	13
CAPITAL GAINS COMMISSIONING	0	65			307	265
VISA - FAIR VALUE HEDGE	0	4			0	15
REAL ESTATE FUNDS PROVISIONS	(4)	0			21	0
VISA - COMMISSIONING ON IFRS 9 VALUATION	0	0			0	0
VISA - IFRS 9 VALUATION	(7)	0			9	0
ADJUSTED COSTS	1,239	1,228	(11)	(1%)	4,640	4,757	117	+3%
REPORTED EBIT	274	248	(27)	(10%)	859	874	15	+2%
ADJUSTED EBIT	152	228	76	+50%	698	790	92	+13%
REPORTED NET PROFIT	190	200	10	+5%	617	640	23	+4%
ADJUSTED NET PROFIT	111	186	74	+67%	511	577	66	+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 25 excluding Poste Italiane liquidity 4. Average yield calculated as interest income on average current account deposits

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

UNREALISED GAINS AT 1.1BN

€ m unless otherwise stated

FY 2018 1H 2019 9M 2019 FY 2019

BTP 30Y 3.53 3.09 1.91 2.47 +0.56

SWAP 30Y 30Y 1.38 0.72 0.22 0.63 +0.41

GROUP TOTAL FINANCIAL ASSETS

POSITIVE NET INFLOWS AND IMPROVED MIX CONFIRM EFFECTIVE COMMERCIAL STRATEGY

€ bn unless otherwise stated

• 3Q19
• Net inflows driven by:

Insurance products +0.9bn, supported by multiclass products

Postal savings distribution further improving in 2019, successfully weathering a low rate

27

POSTAL SAVINGS NET INFLOWS AND DISTRIBUTION FEES ON TRACK WITH 2019 TARGETS

ASSET MANAGEMENT PROGRESSING

MULTICLASS INSURANCE PRODUCTS AND MUTUAL FUNDS NET SALES DRIVING AUM GROWTH

ASSET MANAGEMENT NET INFLOWS INCREASING IN Q4-19

INSURANCE PRODUCTS AND MUTUAL FUNDS NET SALES RESULTING IN POSITIVE NET INFLOWS

SOLID AND EFFICIENT CAPITAL POSITION IN BANCOPOSTA

AN ASSET GATHERER WITH LOW BALANCE SHEET RISK

SOLVENCY II EVOLUTION MANAGERIAL AMBITION CONFIRMED AT C. 200% THROUGH THE CYCLE

SOLVENCY II: OWN FUNDS TIERING AND SCR BREAKDOWN MANAGERIAL AMBITION CONFIRMED AT C. 200% THROUGH THE CYCLE

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

CHANGE VS. SEP. 2019 (EUR M)

INSURANCE SERVICES TRANSITIONAL MEASURES ON TECHNICAL PROVISIONS APPROVED BY THE REGULATOR

SCOPE AND CALCULATION

NET TECHNICAL PROVISIONS INCREASING WHILE CHANGING MIX

CONTINUED DIVERSIFICATION TOWARDS CAPITAL EFFICIENT PRODUCTS

INSURANCE SERVICES: GROSS WRITTEN PREMIUM MIX IN FY19

MULTICLASS AND P&C PRODUCTS AS KEY DRIVERS OF NEW PRODUCTION

INSURANCE SERVICES: GROSS WRITTEN PREMIUM MIX IN Q4-19

MULTICLASS AND P&C PRODUCTS AS KEY DRIVERS OF NEW PRODUCTION

INSURANCE SERVICES MULTICLASS PRODUCTS UNDERPINNING CHANGING MIX OF INSURANCE PRODUCTS

INSURANCE SERVICES UNREALISED CAPITAL GAINS AT c.11.6BN

MAIL, PARCEL & DISTRIBUTION NET CASH POSITION SOLID CASH POSITION IMPACTED BY THE FIRST TIME ADOPTION OF IFRS 16

OPERATIONAL KPI's	Q4-18	Q4-19	Δ% YoY	FY18	FY19	Δ% YoY
Mail Volumes (#m) Parcels delivered by mailmen (#m) MAIL PARCEL & Parcel volumes (#m) DISTRIBUTION B2C Revenues (€m)	754 14 39 98	695 14 44 125	(8%) (1%) +14% +28%	2951 45 127 301	2735 52 148 383	(7%) +16% +16% +27%
PostePay cards (#m) of which PostePay Evolution cards (#m) PAYMENTS, Total payment cards transactions (#bn) MOBILE & of which eCommerce transactions (#m) DIGITAL Mobile & land-line (#m) Digital e-Wallets (#m)				19.0 6.3 1.10 202 4.1 2.8	21.5 7.2 1.44 250 4.4 5.4	+13% +15% +31% +24% +8% +91%
Total Financial Assets - TFAs (€/bn) FINANCIAL Product Sales (#m) SERVICES Unrealized gains (€m)				514 8.4 (1,687)	536 8.0 1,115	+4% (5%) n.m.
Gross Written Premiums (€m) INSURANCE GWP – Life (€m) SERVICES GWP – Private Pension Plan (€m) GWP – P&C (€m)	4,029 3,636 348 44	4,064 3,659 351 54	+1% +1% +1% +22%	16,797 15,514 1,095 187	17,972 16,643 1,088 240	+7% +7% (1%) +28%

INTERSEGMENT COSTS AS OF FY 2019

INTERSEGMENT COST FLOWS	MAIN RATIONALE	INDICATIVE MAIN REMUNERATION SCHEME	€ m	Δ Y/Y
	• Payments, Mobile and Digital remunerates: a) Mail, Parcel and Distribution for providing IT, a) delivery volume and other corporates services1 ;	Number of payment transactions x	a) 222	(2%)
Mail, Parcel & Distribution Payments, a) d) Mobile & Digital g) e) Insurance h) Services	b) Financial Services for promoting and selling card b) payments and other payments (e.g. tax payments)	flat fee (depending on the product) Fixed % of revenues	b) 195 Total: 418	+20%
	throughout the network; • Insurance Services remunerates: c) Financial Services for promoting and selling
	insurance products2 and for investment management c) services3 ; d)	Fixed % of upfront fees Depending on service/product	c) 479 d) 20	+7% 12%
	d) Mail, Parcel and Distribution for providing corporate services1 ;		Total: 499
f) c) b)	• Financial Services remunerates: e) Mail, Parcel and Distribution for promoting and e) selling Financial, Insurance and PMD products throughout the network and for proving corporate	Fixed % (depending on the product) of revenues	e) 4,485	+2%
Financial	services4 ; f) f) Payments, Mobile and Digital for providing certain payment services5	Depending on service/product	f) 338 Total: 4,822	n.m.
Services	• Mail, Parcel and Distribution remunerates:
	g) Payments, Mobile and Digital for acquiring services g) and postman electronic devices	Annual fee	g) 34	n.m.
	h) Financial Services as distribution fees related to h) «Bollettino DTT»	Flat fee for each «Bollettino»	h) 38 Total: 72	4%
	1. Corporate Services such as communication, anti money laundering, IT systems, back office and call centers 2. Which, in turn, remunerates Mail, Parcel and Distribution 3. Investment management services are provided by BancoPosta Fondi SGR SpA. 4. For			42

€m	Q4-18	Q4-19	Var.	Var.%	FY18	FY19	Var.	Var.%
Total revenues	2,913	2,949	36	+1%	10,864	11,038	174	+2%
of which:
Mail, Parcel and Distribution	991	937	(54)	(5%)	3,580	3,492	(88)	(2%)
Payments, Mobile and Digital	158	187	29	+18%	592	664	71	+12%
Financial Services	1,342	1,376	34	+3%	5,221	5,213	(8)	(0%)
Insurance Services	422	450	28	+7%	1,470	1,669	199	+14%
Total costs	2,923	2,715	(207)	(7%)	9,366	9,264	(101)	(1%)
of which:
Total personnel expenses	1,986	1,776	(211)	(11%)	6,137	5,896	(241)	(4%)
of which personnel expenses	1,401	1,452	51	+4%	5,524	5,561	37	+1%
of which early retirement incentives	590	328	(262)	(44%)	619	342	(277)	(45%)
of which legal disputes with employees	(5)	(5)	0	+4%	(5)	(6)	(1)	(15%)
Other operating costs	773	740	(33)	(4%)	2,659	2,594	(65)	(2%)
Depreciation, amortisation and impairments	164	200	36	+22%	570	774	205	+36%
EBIT	(10)	234	244	n.m.	1,499	1,774	275	+18%
EBIT Margin	(0%)	7.9%			13.8%	16.1%
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method	(52)	76	128	n.m.	(8)	99	107	n.m.
Profit before tax	(62)	310	372	n.m.	1,490	1,873	382	+26%
Income tax expense	(404)	51	455	n.m.	92	530	439	n.m.
Profit for the period	343	259	(83)	(24%)	1,399	1,342	(56)	(4%)

€m	Q4-18	Q4-19	Var.	Var.%	FY18	FY19	Var.	Var.%
Segment revenue	991	937	(54)	(5%)	3,580	3,492	(88)	(2%)
Intersegment revenue	1,105	1,219	114	+10%	4,630	4,723	93	+2%
Total revenues	2,096	2,156	60	+3%	8,210	8,215	5	+0%
Personnel expenses	1,961	1,746	(215)	(11%)	5,989	5,782	(208)	(3%)
of which personnel expenses	1,372	1,418	47	+3%	5,381	5,442	60	+1%
of which early retirement incentives	589	328	(262)	(44%)	608	340	(268)	(44%)
Other operating costs	574	557	(17)	(3%)	2,056	1,985	(71)	(3%)
Intersegment costs	16	18	2	+10%	67	72	5	+7%
Total costs	2,551	2,321	(230)	(9%)	8,112	7,838	(274)	(3%)
EBITDA	(455)	(165)	290	+64%	98	377	279	n.m.
Depreciation, amortisation and impairments	152	186	34	+22%	528	724	196	+37%
EBIT	(608)	(351)	256	+42%	(430)	(347)	83	+19%
EBIT MARGIN	(0%)	(0%)			(0%)	(0%)
Finance income/(costs)	(15)	(43)	(28)	n.m.	(31)	(36)	(5)	(17%)
Profit/(Loss) before tax	(622)	(394)	228	+37%	(462)	(384)	78	+17%
Income tax expense	(155)	(98)	57	+37%	(89)	(77)	12	+13%

PAYMENTS, MOBILE & DIGITAL PROFIT & LOSS

€m	Q4-18	Q4-19	Var.	Var.%	FY18	FY19	Var.	Var.%
Segment revenue	158	187	29	+18%	592	664	71	+12%
Intersegment revenue	94	94	(0)	(0%)	360	375	16	+4%
Total revenues	252	280	28	+11%	952	1,039	87	+9%
Personnel expenses	8	8	(0)	(1%)	31	31	1	+3%
of which personnel expenses	8	7	(0)	(4%)	31	31	1	+2%
of which early retirement incentives	0	0	0	n.m.	0	0	0	n.m.
Other operating costs	89	101	12	+14%	304	322	17	+6%
Intersegment costs	101	103	2	+2%	390	418	28	+7%
Total costs	197	212	15	+7%	725	771	46	+6%
EBITDA	55	68	14	+25%	227	268	41	+18%
Depreciation, amortisation and impairments	6	7	1	+10%	24	27	3	+13%
EBIT	48	61	13	+27%	203	241	38	+19%
EBIT MARGIN	19%	22%			21%	23%
Finance income/(costs)	2	93	91	n.m.	4	99	95	n.m.
Profit/(Loss) before tax	51	155	104	n.m.	208	340	133	+64%
Income tax expense	14	17	3	n.m.	55	68	14	+26%
Profit for the period	36	138	101	n.m.	153	272	119	+77%

€m	Q4-18	Q4-19	Var.	Var.%	FY18	FY19	Var.	Var.%
Segment revenue	1,342	1,376	34	+3%	5,221	5,213	(8)	(0%)
Intersegment revenue	161	177	17	+10%	649	712	63	+10%
Total revenues	1,503	1,553	50	+3%	5,871	5,926	55	+1%
Personnel expenses	8	11	3	+35%	80	43	(36)	(45%)
of which personnel expenses	8	11	3	+39%	70	42	(28)	(40%)
of which early retirement incentives	1	0	(0)	(19%)	10	2	(8)	(83%)
Other operating costs	85	44	(41)	(48%)	214	186	(28)	(13%)
Depreciation, amortisation and impairments	0	(0)	(0)	n.m.	0	0	(0)	(77%)
Intersegment costs	1,135	1,251	116	+10%	4,718	4,822	105	+2%
Total costs	1,228	1,306	77	+6%	5,011	5,052	40	+1%
EBIT	274	248	(27)	(10%)	859	874	15	+2%
EBIT MARGIN	18%	16%	(0)	(13%)	15%	15%
Finance income/(costs)	(40)	11	50	n.m.	(32)	6	38	n.m.
Profit/(Loss) before tax	234	258	24	+10%	827	881	53	+6%
Income tax expense	44	58	13	+30%	210	240	30	+14%
Profit for the period	190	200	10	+5%	617	640	23	+4%

INSURANCE SERVICES PROFIT & LOSS

€m	Q4-18	Q4-19	Var.	Var.%	FY18	FY19	Var.	Var.%
Segment revenue	422	450	28	+7%	1,470	1,669	199	+14%
Intersegment revenue	0	0	(0)	(27%)	2	1	(1)	(64%)
Total revenues	423	450	28	+7%	1,472	1,670	197	+13%
Personnel expenses	10	11	1	+15%	38	40	2	+6%
of which personnel expenses	9	11	2	+21%	37	40	3	+9%
of which early retirement incentives	0	0	(0)	n.m.	1	0	(1)	(100%)
Other operating costs	25	39	14	+54%	84	102	17	+21%
Depreciation, amortisation and impairments	5	6	1	+26%	17	24	6	+37%
Intersegment costs	108	118	10	+10%	467	499	32	+7%
Total costs	147	174	27	+18%	606	664	58	+10%
EBIT	275	276	1	+0%	866	1,006	140	+16%
EBIT MARGIN	65%	61%			59%	60%
Finance income/(costs)	1	15	14	n.m.	51	30	(21)	(41%)
Profit/(Loss) before tax	276	291	15	+6%	917	1,035	119	+13%
Income tax expense	(308)	73	382	n.m.	(84)	298	383	n.m.
Profit for the period	584	218	(366)	(63%)	1,001	737	(264)	(26%)

DISCLAIMER

This presentation 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 presentation 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 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 precisely estimate, including, but not limited to, changes in the legislative and regulatory framework, market developments and price fluctuations.

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

This presentation 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 presentation may not add up only due to roundings.