Poste Italiane

Interim / Quarterly Report • Feb 22, 2018

Poste Italiane's Financial Database

Investor Relations

Index

click here =>	1. Group's P&L
	2. Group's Balance Sheet
	3. Segment Overview
	4. Segment Details
	5. Financial Services
	6. Mobile & Digital Payments
	7. Insurance Services
	8. Mail, Parcels & Distribution

Disclaimer

This document contains the main economic and financial data of the Poste Italiane Group for the 2016 and 2017 financial years (for 2017 preliminary results approved on February 19th , 2018). Figures are shown according to the new segment reporting and are in line with the criteria used for the 2018-2022 Business Plan which will be presented to the financial community on 27 February 2018.

Nel presente documento sono riportati i principali dati economico-finanziari del Gruppo Poste Italiane relativi agli esercizi 2016 e 2017 (in tal caso, sulla base dei risultati preliminari approvati lo scorso 19 febbraio 2018), i quali vengono esposti secondo modalità di rappresentazione coerenti con l'impostazione del Piano Industriale 2018-2022 che formerà oggetto di presentazione alla comunità finanziaria in data 27 febbraio 2018.

Poste Italiane's Divisional Database FINANCIAL SERVICES
	2016	2017
REVENUE BREAK-DOWN €/m	FY	FY
TOTAL REVENUES	5,991	5,970
EXTERNAL REVENUES	5,009	4,956
Gross Capital Gain	473	547
Interest Income	1,510	1,478
Postal Savings	1,577	1,566
Transaction banking	1,061	1,008
of which Plus Visa/Mastercard	121	91
Third Parties Distribution	327	272
of which BdM-MCC	105	50
Asset Management INTERSEGMENT REVENUES	61 982	85 1,014
SELECTED KPI
TOTAL FINANCIAL ASSETS - TFAs (€/bn)	493	506
Postal Saving Books	119	109
Postal Bonds	204	214
Deposits	49	52
Mutual Funds	7	8
Net Technical Reserves	114	123
CURRENT ACCOUNTS
Average Current Account Deposits (€m)	49,643	55,769
Average deposits from Public Administration	5,512	5,852
Repo & Poste Italiane Liquidity	5,472	5,170
Average deposits from Retail and Corporate customers	38,659	44,747
# of current accounts from PublicAdministration (K) # of current accounts from Retail & Corporate (M)	57.0 6.3	55.9 6.3
Unrealized gains (€m)	2,881	1,615
POSTAL SAVINGS
Average Postal Savings Deposits (€m)	309,819	305,611
Postal Saving Books Postal Bonds	119,276 190,543	113,529 192,083
# of Postal Savings Books (M)	30.3	30.3
POSTAL SAVINGS NET INFLOWS (€m) 1H	(10,427) (4,986)	(7,883) (7,990)
2H	(5,441)	107
P&L €/m
External revenue	5,009	4,956
Intersegment revenue	982	1,014
TOTAL REVENUES	5,991	5,970
Cost of goods and services	148	150
Other expenses from financial activities	62	57
Personnel expenses	120	103
Depreciation, amortisation and impairments	1	1
Capitalised costs and expenses	-	-
Other operating costs Intersegment costs	180 4,820	251 4,762
Total costs	5,331	5,324
OPERATING PROFIT/(LOSS)	660	646
Finance income/(costs)	(1)	(2)
Profit/(loss) on investments accounted for using the equity method	10	12
Finance income/(costs) intersegment	(6)	(4)
Profit/(Loss) before tax	663	652
Income tax expense	198	153
PROFIT FOR THE PERIOD	465	499

BALANCE SHEET

Property, plant and equipment	0	1
Investment property	-	-
Intangible assets	0	0
Investments	6	11
Financial assets	47,299	49,415
Trade receivables	-	-
Deferred tax assets	317	402
Other receivables and assets	861	1,040
Technical provisions attributable to reinsurers	-	-
Total Non-current assets	48,483	50,869
Inventories	0	0
Trade Receivables	768	815
Current tax assets	0	0
Other receivables and assets	605	599
Financial assets	11,230	11,274
Cash and deposits attributable to BancoPosta	2,494	3,196
Cash and cash equivalents	1,320	396
Total current assets	16,418	16,280
Non-current assets and disposal groups held for sale	2,727	-
TOTAL ASSETS	67,629	67,149
Total Equity	3,704	2,702
Technical provisions for insurance business	-	-
Provisions for risks and charges	377	438
Employee termination benefits and pension plans	18	16
Financial liabilities	6,410	4,010
Deferred tax liabilities	530	308
Other liabilities	937	1,115
Total Non-current liabilities	8,272	5,888
Provisions for risks and charges	70	94
Trade payables	402	345
Current tax liabilities	1	1
Other liabilities	58	66
Financial liabilities	52,810	58,053
Total Current liabilities	53,340	58,559
Liabilities related to assets held for sale	2,313	-
TOTAL EQUITY AND LIABILITIES	67,629	67,149

€/m

STATUTORY ACCOUNT CONSOLIDATED BALANCE SHEET 2016 €/m FY Property, plant and equipment 2,080 Investment property 56 Intangible assets 513 Investments accounted for using the equity method 218 Financial assets 155,819 Trade receivables 4 Deferred tax assets 799 Other receivables and assets 2,682 Technical provisions attributable to reinsurers 66 Total Non-current assets 162,237 Inventories 137 Trade Receivables 2,168 Current tax assets 15 Other receivables and assets 989 Financial assets 18,543 Cash and deposits attributable to BancoPosta 2,494 Cash and cash equivalents 3,902 Total current assets 28,248 Non-current assets and disposal groups held for sale 2,720 TOTAL ASSETS 193,205 Share capital 1,306 Reserves 2,374 Retained earnings 4,454 Total Equity 8,134 Technical provisions for insurance business 113,678	2017 2,001 516 508 171,004 869 3,043 178,073
	138
	2,026
	15,762
	3,196
	2,428
	24,597
	202,670
	1,306
	1,611
	4,633 7,550
	123,650
Provisions for risks and charges 658
Employee termination benefits and pension plans 1,347	1,274
Financial liabilities 8,404	5,044
Deferred tax liabilities 746
Other liabilities 1,071 Total Non-current liabilities 125,904	1,207 132,413
Provisions for risks and charges 849
Trade payables 1,506	1,332
Current tax liabilities 88
Other liabilities 2,147	2,249
Financial liabilities 52,517	58,200
Total Current liabilities 57,107	62,707
Liabilities related to assets held for sale 2,060
TOTAL EQUITY AND LIABILITIES 193,205	202,670

Poste Italiane's Divisional Database STATUTORY ACCOUNT

CONSOLIDATED P&L	2016	2017
€/m	FY	FY
Revenue from Mail, Parcels & Distribution	3,822	3,631
Revenue from Payment, Mobile & Digital	570	586
Revenue from Financial Services	5,009	4,956
of which, non-recurring income	121	91
Revenue from Insurance Services net change in technical provisions and other claims expenses	1,242	1,456
Insurance premium revenue	19,884	20,343
Other income from insurance activities	3,827	3,925
Net change in technical provisions and other claims expenses	(21,958)	(22,335)
Other expenses from insurance activities	(511)	(477)
Net operating revenue	10,643	10,629
Cost of goods and services	2,442	2,370
Other expenses from financial activities	62	57
Personnel expenses	6,241	6,093
Depreciation, amortisation and impairments	581	545
Capitalised costs and expenses	(25)	(24)
Other operating costs	301	465
of which, non-recurring costs	37	-
Operating profit/(loss)	1,041	1,123
EBIT Margin (%)	9.8%	10.6%
Finance income/(costs)	9	(73)
of which, non-recurring income/(costs)	-	(82)
Profit/(loss) on investments accounted for using the equity method	6	17
PROFIT/(LOSS) BEFORE TAX	1,056	1,067
Income tax expense	434	378
of which, non-recurring (income)/costs	14	(9)
PROFIT FOR THE YEAR	622	689

Return to Cover

Poste Italiane's Divisional Database
INSURANCE SERVICES
	2016	2017
	FY	FY
REVENUE BREAK-DOWN €/m
TOTAL REVENUES	1,242	1,457
EXTERNAL REVENUES	1,242	1,456
Life	1,060	1,280
Class V	7	7
Class III Class I - IV	21 1,032	16 1,258
P&C	75	99
Private Pension Plan	106	76
INTERSEGMENT REVENUES	-	1
SELECTED KPI Different Unit
Gross Written Premiums	19,938	20,404
GWP - Life	19,820	20,263
Class I - IV	19,276	19,651
Class III Class V	475 69	537 75
GWP - P&C	119	141
Payment	27	30
Property	29	33
Personal	62	73
Welfare	0	5
Financial and Insurance Activities	3,307	3,438
P&L
€/m
External revenue	1,242	1,456
Intersegment revenue	-	1
TOTAL REVENUES	1,242	1,457
Cost of goods and services Other expenses from financial activities	79 -	74 -
Personnel expenses	35	37
Depreciation, amortisation and impairments	14	17
Capitalised costs and expenses	-	-
Other operating costs	10	11
Intersegment costs	500	519
Total costs	638	658
OPERATING PROFIT/(LOSS)	604	799
Finance income/(costs)	52	49
Profit/(loss) on investments accounted for using the equity method	-	-
Finance income/(costs) intersegment	(13)	(5)
Profit/(Loss) before tax	643	843
Income tax expense	251	297
PROFIT FOR THE PERIOD	392	546

BALANCE SHEET

€/m
Property, plant and equipment	8	9
Investment property	-	-

Intangible assets 46 43 Investments 157 157

Financial assets	107,868	121,005
Trade receivables	-	-
Deferred tax assets	50	32
Other receivables and assets	1,682	1,885
Technical provisions attributable to reinsurers	66	71
Total Non-current assets	109,877	123,202
Inventories	-	-
Trade Receivables	4	4
Current tax assets	0	8
Other receivables and assets	94	83
Financial assets	7,728	4,855
Cash and deposits attributable to BancoPosta	-	-
Cash and cash equivalents	1,324	907
Total current assets	9,150	5,857
Non-current assets and disposal groups held for sale	-	-
TOTAL ASSETS	119,027	129,059
Total Equity	3,311	3,378
Technical provisions for insurance business	113,678	123,650
Provisions for risks and charges	11	11
Employee termination benefits and pension plans	3	3
Financial liabilities	997	998
Deferred tax liabilities	191	202
Other liabilities	122	24
Total Non-current liabilities	115,002	124,888
Provisions for risks and charges	-	-
Trade payables	177	180
Current tax liabilities	14	17
Other liabilities	509	577
Financial liabilities	16	19
Total Current liabilities	715	793
Liabilities related to assets held for sale	-	-
TOTAL EQUITY AND LIABILITIES	119,027	129,059

Poste Italiane's Divisional Database MAIL, PARCELS & DISTRIBUTION
	2016	2017
	FY	FY
MAIL Different Unit
REVENUES (EUR/m)	2,907	2,650
Unrecorded Mail and Philately	934	810
Recorded Mail Direct Marketing e Unaddressed Mail	965 176	981 155
Integrated Services	207	176
Other	254	222
USO and Other Compensations	371	306
VOLUMES (pz/m)	3,506	3,167
Unrecorded Mail and Philately	1,491	1,381
Recorded Mail Direct Marketing e Unaddressed Mail	201 813	199 677
Integrated Services	34	27
Other	967	883
PARCELS
Different Unit
REVENUES (EUR/m)	649	693
VOLUMES (pz/m)	97	113
B2B	30	29
B2C C2C	41 6	58 6
International	4	4
Other	16	17
P&L €/m
External revenue	3,822	3,631
Intersegment revenue	4,540	4,497
TOTAL REVENUES	8,362	8,128
Cost of goods and services	2,048	2,000
Other expenses from financial activities	- 6,055	- 5,922
Personnel expenses Depreciation, amortisation and impairments	536	505
Capitalised costs and expenses	(25)	(24)
Other operating costs	96	177
Intersegment costs	88	65
Total costs	8,798	8,645
OPERATING PROFIT/(LOSS)	(436)	(517)
Finance income/(costs)	(41)	(119)
Profit/(loss) on investments accounted for using the equity method	(4)	(2)
Finance income/(costs) intersegment	19	9
Profit/(Loss) before tax	(462)	(629)
Income tax expense	(83)	(127)
PROFIT FOR THE PERIOD	(379)	(502)
Balance Sheet €/m
Property, plant and equipment	2,063	1,973
Investment property	56	52
Intangible assets	429	440
Investments*	1,877	1,784
Financial assets	1,102	834
Trade receivables Deferred tax assets	4 422	5 424
Other receivables and assets	279	257
Technical provisions attributable to reinsurers
Total Non-current assets	6,232	5,769
Inventories	133	135

Trade receivables 1,877 1,647

Current tax assets	12	82
Other receivables and assets	369	307
Financial assets	134	263
Cash and deposits attributable to BancoPosta
Cash and cash equivalents	1,556	1,997
Total Current assets	4,081	4,430
Non-current assets and disposal groups held for sale	0	0
TOTAL ASSETS	10,314	10,200
Totale Equity	2,759	2,735
Dividend Paid	(444)	(509)
Net Income	(379)	(502)
Cash in received	1,010	974
Technical provisions for insurance business
Provisions for risks and charges	254	227
Employee termination benefits and pension plans	1,323	1,253
Financial liabilities	1,246	285
Deffered tax liabilities	24	36
Other liabilities	69	67
Total Non-current liabilities	2,916	1,868
Provisions for risks and charges	775	804
Trade payables	1,375	1,214
Current tax liabilities	73	5
Other liabilities	1,576	1,611
Financial liabilities	840	1,963
Total Current liabilities	4,639	5,597
Liabilities related to assets held for sale
TOTAL EQUITY AND LIABILITIES	10,314	10,200

Poste Italiane's Divisional Database PAYMENTS, MOBILE & DIGITAL
	2016	2017
	FY	FY
REVENUE BREAK-DOWN €/m
TOTAL REVENUES	929	914
EXTERNAL REVENUES	570	586
Mobile	224	211
Cards & Acquiring	167	212
Cards	15	18
Acquiring	152	194
Transaction Banking	180	162
Payment Slips	156	138
Banking & Money Transfer	24	23
Other Transaction Banking	1
INTERSEGMENT REVENUES	359	328
SELECTED KPI
CARDS & ACQUIRING
Prepaid cards - # of cards (m)	16.11	17.67
Prepaid card - Transaction Value (€m)	8,095	10,164
Debit cards - # of cards (m)	7.03	7.14
Debit card - Transaction Value (€m)	11,457	12,643
Credit cards - # of cards (m)	0.40	0.40
Credit card - Transaction Value (€m)	1,045	1,073
Acquiring - # pos (m)	0.10	0.09
Acquiring - Transaction Value (€m)	11,800	12,650
MONEY TRANFER AND PAYMENTS
Payments Slip # of payments (m)	404.6	387.7
Bank& Money Transfer: # transactions (m)	19.1	20.1
P&L
€/m
External revenue	570	586
Intersegment revenue	359	328
TOTAL REVENUES	929	914
Cost of goods and services	167	146
Other expenses from financial activities	-
Personnel expenses	31	31
Depreciation, amortisation and impairments	30	22
Capitalised costs and expenses	-
Other operating costs Intersegment costs	15 473	26 494
Total costs	716	719
OPERATING PROFIT/(LOSS)	213	195
Finance income/(costs)	(1)	(1)
Profit/(loss) on investments accounted for using the equity method	-	7
Finance income/(costs) intersegment	-	-
Profit/(Loss) before tax	212	201
Income tax expense	68	55
PROFIT FOR THE PERIOD	144	146
BALANCE SHEET
€/m

Property, plant and equipment	10	18
Investment property	-	-
Intangible assets	37	33
Investments	-	7
Financial assets	-	-
Trade receivables	-	4
Deferred tax assets	10	10
Other receivables and assets	-	0

Technical provisions attributable to reinsurers	-	-
Total Non-current assets	57	72
Inventories	4	3
Trade Receivables	97	81
Current tax assets	2	3
Other receivables and assets	19	27
Financial assets	2,609	3,283
Cash and deposits attributable to BancoPosta	-	-
Cash and cash equivalents	21	21
Total current assets	2,751	3,418
Non-current assets and disposal groups held for sale	-	-
TOTAL ASSETS	2,808	3,490
Total Equity	323	325
Technical provisions for insurance business	-	-
Provisions for risks and charges	16	16
Employee termination benefits and pension plans	3	3
Financial liabilities	1	1
Deferred tax liabilities	0	0
Other liabilities	-	-
Total Non-current liabilities	20	19
Provisions for risks and charges	4	5
Trade payables	133	117
Current tax liabilities	0	-
Other liabilities	45	54
Financial liabilities	2,283	2,970
Total Current liabilities	2,465	3,146
Liabilities related to assets held for sale	-	-
TOTAL EQUITY AND LIABILITIES	2,808	3,490

	Return to Cover
--	-----------------	--	--	--

Poste Italiane's Divisional Database SEGMENT DETAILS - €/m
FY 2017	Mail, Parcels & Distribution	Payments Mobile & Digital		Financial Services Insurance Services	Adjustments and eliminations	Total
External revenue	3,631	586	4,956	1,456	-	10,629
Intersegment revenue	4,497	328	1,014	1	(5,840)	-
TOTAL REVENUES	8,128	914	5,970	1,457	(5,840)	10,629
Cost of goods and services	2,000	146	150	74	-	2,370
Other expenses from financial activities	-	-	57	-	-	57
Personnel expenses	5,922	31	103	37	-	6,093
Depreciation, amortisation and impairments	505	22	1	17	-	545
Capitalised costs and expenses	(24)	-	-	-	-	(24)
Other operating costs	177	26	251	11	-	465
Intersegment costs	65	494	4,762	519	(5,840)	-
Total costs	8,645	719	5,324	658	(5,840)	9,506
OPERATING PROFIT/(LOSS)	(517)	195	646	799	-	1,123
Finance income/(costs)	(119)	(1)	(2)	49	-	(73)
Profit/(loss) on investments accounted for using the equity method Finance income/(costs) intersegment	(2) 9	7 -	12 (4)	- (5)	- -	17 -
Profit/(Loss) before tax	(629)	201	652	843	-	1,067
Income tax expense	(127)	55	153	297	-	378
PROFIT FOR THE PERIOD	(502)	146	499	546	-	689
					Adjustments
FY 2016	Mail, Parcels & Distribution	Payments Mobile & Digital		Financial Services Insurance Services	and eliminations	Total
	3,822	570	5,009	1,242	-	10,643
External revenue Intersegment revenue	4,540	359	982	-	(5,881)	-
TOTAL REVENUES	8,362	929	5,991	1,242	(5,881)	10,643
Cost of goods and services	2,048	167	148	79	-	2,442
Other expenses from financial activities	-	-	62	-	-	62
Personnel expenses	6,055	31	120	35	-	6,241
Depreciation, amortisation and impairments	536	30	1	14	-	581
Capitalised costs and expenses	(25)	-	-	-	-	(25)
Other operating costs	96	15	180	10	-	301
Intersegment costs	88	473	4,820	500	(5,881)	-
Total costs	8,798	716	5,331	638	(5,881)	9,602
OPERATING PROFIT/(LOSS)	(436)	213	660	604	-	1,041
	(41)	(1)	(1)	52	-	9
Finance income/(costs) Profit/(loss) on investments accounted for using the equity method	(4)	-	10	-	-	6
Finance income/(costs) intersegment	19	-	(6)	(13)	-	-
Profit/(Loss) before tax	(462)	212	663	643	-	1,056
Income tax expense	(83)	68	198	251	-	434

PROFIT FOR THE PERIOD (379) 144 465 392 - 622

Return to Cover

Poste Italiane's Divisional Database
SEGMENT Overview
SELECTED RESULTS	2016	2017
€/m	FY	FY
NET OPERATING REVENUE	10,643	10,629
Mail, Parcel & Distribution	3,822	3,631
Payments Mobile & Digital	570	586
Financial Services	5,009	4,956
Insurance Services	1,242	1,456
EBITDA	1,622	1,668
Mail, Parcel & Distribution	100	(12)
Payments Mobile & Digital	243	217
Financial Services	661	647
Insurance Services	618	816
EBIT	1,041	1,123
Mail, Parcel & Distribution	(436)	(517)
Payments Mobile & Digital	213	195
Financial Service	660	646
Insurance Services	604	799
NET PROFIT	622	689
Mail, Parcel & Distribution	(379)	(502)
Payments Mobile & Digital	144	146
Financial Service	465	499
Insurance Services	392	546
CAPEX	451	467
Mail, Parcel & Distribution	408	425
Payments Mobile & Digital	21	27
Financial Service	2	0
Insurance Services	20	15