Poste Italiane

Investor Presentation • Feb 27, 2018

CAPITAL MARKETS DAY

Milan, February 27th 2018

AGENDA

11.00 -11.05 OPENING 11.05 - 11.40 M. DEL FANTE, CEO 11.40 - 12.00 M. SIRACUSANO, HEAD OF PAYMENT, MOBILE & DIGITAL 12.00 - 12.40 M. ROSINI, HEAD OF MAIL & PARCEL 12.40 - 13.00 Q&A 13.00 LUNCH 14.15 - 14.45 A. NOVELLI, BANCOPOSTA CEO 14.45 – 15.00 Q&A 15.00 – 15.45 R. GIACCHI, CFO 15.45 – 15.50 M. DEL FANTE, CEO 15.50 Q&A 16.45 CLOSING REMARKS

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. Full year 2017 results shown in this presentation refer to preliminary results.

Numbers in the presentations may not add up only due to roundings.

DELIVER 2022

Marco Siracusano Head of Payment, Mobile & Digital

Massimo Rosini Head of Mail & Parcel

Andrea Novelli BancoPosta CEO

Matteo Del Fante

Chief Executive Officer and Managing Director

Roberto Giacchi Chief Financial Officer

Massimo Molinari Poste Vita Group CFO

Massimiliano Riggi Investor relations

DELIVER 2022 ITALY'S MOST EFFECTIVE AND TRUSTED DISTRIBUTION NETWORK

Matteo Del Fante, CEO Milan, February 27th 2018

OUR VISION

TO BE ITALY'S MOST EFFECTIVE AND TRUSTED DISTRIBUTION NETWORK

DELIVER 2022

A FIVE YEAR STRATEGIC VISION BUILT ON STRONG BUSINESS FUNDAMENTALS AND EVOLVING CUSTOMER NEEDS

A GROUP WIDE TRANSFORMATION PROGRAM WITH A FOCUS ON POSTE ITALIANE'S PEOPLE AND SYSTEMS

PRAGMATIC FINANCIAL TARGETS AND CLEARLY DEFINED KPIs, UNDERPINNED BY A RENEWED FOCUS ON OPERATIONAL PERFORMANCE

KEY CONSOLIDATED FINANCIAL TARGETS

€ bn unless otherwise stated	2017	2018	2020	2022
REVENUE	10.6	10.7	10.9	11.2
EBIT EBIT MARGIN %	1.1 11%	1.4 13%	1.6 15%	1.8 16%
NET PROFIT ROE % (1)	0.7 10%	1.0 13%	1.1 13%	1.2 13%

DELIVER 2022 IN SUMMARY STRONG FUNDAMENTALS – CUSTOMER DRIVEN - PEOPLE FIRST

FINANCIAL & INSURANCE

Expand financial offer with focus on wealth management and product distribution

Consolidate life insurance leadership and develop P&C offer

and B2C growth

ITALY'S LEADING CUSTOMER DISTRIBUTION NETWORK KEY FIGURES

	MAIL & PARCEL		PAYMENTS, FINANCIAL & MOBILE & DIGITAL INSURANCE
	Unrivalled physical distribution network		Italian payments champion Market leading product Advanced customer data capabilities distribution network Leading financial web and app platforms
100% ITALIAN COVERAGE	110m PARCELS PER YEAR	30% B2C MARKET SHARE	25% 24.8m 104bn 15.6m 34.4m 12,822 E-COMMERCE CARDS PAYMENT APP CUSTOMERS POST PAYMENTS ISSUED TRANSAC- DOWN OFFICES TIONS LOADED	1.5m DAILY VISITS

06

ITALY'S LEADING CUSTOMER DISTRIBUTION NETWORK STRATEGIC ACHIEVEMENTS

A FIVE YEAR STRATEGIC VISION BUILT ON STRONG BUSINESS FUNDAMENTALS AND EVOLVING CUSTOMER NEEDS

ITALIAN MARKET TRENDS CREATING OPPORTUNITIES

STEADY GDP GROWTH; ITALIAN HOUSEHOLD UNDER LEVERAGED, WEALTHY AND UNDER PROTECTED

E-COMMERCE MARKET OPPORTUNITY POSITIVE TRENDS FOR B2C PARCEL GROWTH PER CAPITA

DIGITAL OPPORTUNITIES ITALY POSITIVE TRENDS CREATING OPPORTUNITIES FOR POSTE TO LEAD

*Digital Economy and Society Index – European Commission: compound index based on connectivity, human capital/digital skills, use of internet by citizens, integration of digital technology by businesses, digital public services

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Source: Global Payments Map; Banca d'Italia; European Commission; Wearesocial website; Ovum analysis Mason WCIS; Similarweb; App Annie - Dec 2017

CUSTOMER NETWORK COVERAGE OPPORTUNITIES UNRIVALLED UNIVERSAL COVERAGE

1 Not included: cash, equity shares of unlisted companies, trade credits, pension funds and severance payments

• 2 For number of branches
• 3 For gross premium

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Source: Banca d'Italia (Financial wealth); Banca d'Italia (Banking network); ISTAT (Region and Population); Ivass Reg. A Legal entities

A GROUP WIDE TRANSFORMATION PROGRAM WITH A FOCUS ON POSTE ITALIANE'S PEOPLE AND SYSTEMS

NATURAL WORKFORCE DYNAMICS AGE PYRAMID SUPPORTS CONSTANT RENEWAL

OVER HALF THE WORKFORCE WILL RETIRE IN NEXT TEN YEARS

PLANNED HEADCOUNT REDUCTION PROGRAM CONTINUING CURRENT TREND

AVERAGE HEADCOUNT ('000)

WORKFORCE TRANSFORMATION PRIORITIES

INJECTION OF NEW TALENT AND NEW OPPORTUNITIES FOR EXISTING STAFF

COMPREHENSIVE PEOPLE DEVELOPMENT STRATEGY

20 MILLION TRAINING HOURS OVER THE PLAN

STAFF TRAINING & CHANGE SUPPORT

TALENT DEVELOPMENT

• > 800 young internal talents identified and development program started
• > Targeting 200+ for managerial positions in the next 5 years
• > Widespread use of mentoring and coaching models to support people development and innovation
• > Corporate staff moving into flexible and smart working

SUPPORTED BY CAPITAL INVESTMENTS INFRASTRUCTURE TOOLS: €2.8 BN CAPEX OVER PLAN

These key areas represent about 60% of the total €2.8 bn 2018-2022 Group capital expenditure

PRAGMATIC FINANCIAL TARGETS AND CLEARLY DEFINED KPIs, UNDERPINNED BY RENEWED FOCUS ON OPERATIONAL PERFORMANCE

COMBINED POWER OF OUR SEGMENTS ALL CONTRIBUTING TO EBIT GROWTH STORY

KEY CONSOLIDATED FINANCIAL TARGETS

bn unless otherwise stated	2017	2018	2020	2022	CAGR 17-22
REVENUE	10.6	10.7	10.9	11.2	+1%
EBIT EBIT MARGIN %	1.1 11%	1.4 13%	1.6 15%	1.8 16%	+10%
NET PROFIT ROE %1	0.7 10%	1.0 13%	1.1 13%	1.2 13%	+13%
		18-20		21-22
DIVIDEND (€/SHARE)	0.42	+5% PerAnnum	Minimum	Payout 60%

EBIT EVOLUTION 2017 VS 2022 KEY EBIT GROWTH DRIVERS

DELIVER 2022

A FIVE YEAR STRATEGIC VISION BUILT ON STRONG BUSINESS FUNDAMENTALS AND EVOLVING CUSTOMER NEEDS

A GROUP WIDE TRANSFORMATION PROGRAM WITH A FOCUS ON POSTE ITALIANE'S PEOPLE AND SYSTEMS

PRAGMATIC FINANCIAL TARGETS AND CLEARLY DEFINED KPIs, UNDERPINNED BY A RENEWED FOCUS ON OPERATIONAL PERFORMANCE

DELIVER 2022 – DIGITAL ENABLING POSTE ITALIANE'S DIGITAL LEADERSHIP

Marco Siracusano - Head of Payments, Mobile & Digital Milan, February 27th 2018

ITALY'S DIGITAL CHAMPION

> Presence across all Italy

• > Extraordinary Customer base
• > High usage of online touchpoints
• > Unique multichannel customer experience
• > Innovation of products and services

The "engine" of Italy's Digital Transformation

DELIVER 2022 - DIGITAL

BUILD ON OUR POSITION AS ITALY'S LEADING DIGITAL CONSUMER ECOSYSTEM

MAXIMIZE OPPORTUNITY REPRESENTED BY CONVERGENCE OF PHYSICAL AND DIGITAL CHANNELS

CONTINUE TO IMPROVE I.T. CAPABILITIES AND USE DEDICATED "DIGITAL HUB" TO DRIVE CONTINUOUS INNOVATION

BUILD ON OUR POSITION AS ITALY'S LEADING DIGITAL CONSUMER ECOSYSTEM

POSITIVE MACRO TRENDS DRIVING DIGITAL GROWTH INCREASED DIGITAL USE CREATES OPPORTUNITIES

> Strong opportunities to replace cash with cards and innovative digital payments

85% Cash penetration in Italy (vs. 68% average Europe)2

• > Digital divide reduction
• > Heavy e-commerce growth
• > Increasing focus on Big Data & Analytics

+19.1%

05

Online sales growth (vs. 12.3% CAGR 17-20 average EU)3

> Increased data usage and 4G penetration > Innovation in Machine to Machine and Internet of Things solutions

DIGITAL ECOSYSTEM POSTE ITALIANE LEADERSHIP

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POSTE ITALIANE DIGITAL CHANNELS FOCUS ON USAGE GROWTH

GROWTH IN CONSUMER FINANCIAL TRANSACTIONS

DIGITAL SERVICES PUBLIC ADMINISTRATION ACTIVELY SUPPORTING ITALIAN PUBLIC ADMINISTRATION DIGITALIZATION INITIATIVES

• > National solution for European electronic identification (eID) defined by Italian Government
• > First eID Provider certified by Government
• > Italian citizens can access all Public Administration digital services through SpiD

• > 90% percent market share with 20 million customers usage

• > First provider connected to the national digital payment platform "Pago PA"

• > Over 117 million payment transactions
• > Largest Payment Service Provider for Public Administration

> Agreement with Ministry of Education (MIUR) to provide card platform for students

POSTE ITALIANE DIGITAL CHANNELS FOCUS ON MOBILE APPS

MARKET LEADING FINANCIAL APPS2 - DOWNLOADS

6.3 m POSTEPAY UFFICIO POSTALE 1.9 m 3.1 m BANCOPOSTA POSTEID 1.5 m 2.8 m POSTEMOBILE

+80% YoY

+36% YoY

HIGH APP USER SATISFACTION3

(1) Source: App stores (iOS and Android) (2) Source; App Annie - Dec 2017 (3) Source: App stores (iOS and Android) – average rating on Jan 2018

+43% YoY

+126% YoY

09

+39%YoY

MAXIMIZE OPPORTUNITY REPRESENTED BY CONVERGENCE OF PHYSICAL AND DIGITAL CHANNELS

POSTE ITALIANE CUSTOMER BASE AT A GLANCE

HIGH PENETRATION IN "UNDER 35" CLIENTS

		DEMOGRAPHICS
	ITALIAN POPULATION1 (>=18)	POSTE ITALIANE CUSTOMER BASE	POST OFFICE VISITORS2	POSTE ITALIANE DIGITAL CUSTOMERS3
>64	27%	28%	25%	6%
35-64	52%	45%	56%	51%
<35	21%	27%	19%	43%
	51 m	34.4 m

1 Istat 2017 2 Doxa Research 2017 3 Website visitors – Google analytics

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POSTE ITALIANE DAILY VISITORS MULTICHANNEL TOUCHPOINTS

POSTE ITALIANE MULTICHANNEL TOUCHPOINTS DAILY VISITORS CHANGING THE POST OFFICE EXPERIENCE

Integration of digital and physical customer journey

CONTINUE TO IMPROVE I.T. CAPABILITIES AND USE DEDICATED "DIGITAL HUB" TO DRIVE CONTINUOUS INNOVATION

POSTE ITALIANE DIGITAL HUB TO BOOST INNOVATION

DELIVER 2022 - DIGITAL

BUILD ON OUR POSITION AS ITALY'S LEADING DIGITAL CONSUMER ECOSYSTEM

MAXIMIZE OPPORTUNITY REPRESENTED BY CONVERGENCE OF PHYSICAL AND DIGITAL CHANNELS

CONTINUE TO IMPROVE I.T. CAPABILITIES AND USE DEDICATED "DIGITAL HUB" TO DRIVE CONTINUOUS INNOVATION

DELIVER 2022 - MAIL, PARCEL & DISTRIBUTION COMPREHENSIVE NETWORK TURNAROUND AND E-COMMERCE OPPORTUNITY

Massimo Rosini - Head of Mail & Parcel Milan, February 27th 2018

DELIVER 2022 - MAIL, PARCEL & DISTRIBUTION

LEVERAGE UNIQUE DISTRIBUTION CAPABILITIES TO CAPTURE OPPORTUNITIES FROM POSTAL SECTOR EVOLUTION

COMPREHENSIVE NETWORK TRANSFORMATION, LEVERAGING JOINT MAIL & PARCEL APPROACH, TO DELIVER IMPROVED PERFORMANCE

FOCUS ON CUSTOMER-DRIVEN QUALITY APPROACH AND PRODUCT OFFER TO DRIVE B2C GROWTH AND COUNTER MAIL DECLINE

SIGNIFICANT INVESTMENTS TO REACH CLEAR AND PRAGMATIC TARGETS

investments to drive transformation

LEVERAGE UNIQUE DISTRIBUTION CAPABILITIES TO CAPTURE OPPORTUNITIES FROM POSTAL SECTOR EVOLUTION

POSTAL SECTOR EVOLUTION MAIL DECLINE CONTINUING AND PARCEL GROWTH DRIVEN BY B2C

04

MAIL VOLUMES IN DECLINE LIBERALIZATION AND LOW COMMERCIAL MAIL PENETRATION

STEEPER VOLUME DECLINES VS OTHER COUNTRIES

MARKET LIBERALIZATION DRIVING COMPETITION

SIGNIFICANT GAP IN PENETRATION OF COMMERCIAL MAIL

SIGNIFICANT E-COMMERCE GROWTH POTENTIAL IN ITALY ONLINE SALES CATCHING UP WITH EUROPEAN PEERS

ONLINE SALES BELOW AVERAGE… … BUT QUICKLY CATCHING UP AND EXPECTED TO GROW FASTER

ITALIAN B2C VOLUMES TO MORE THAN DOUBLE BY 2020 E-COMMERCE-RELATED1 PARCEL PENETRATION

UNRIVALLED DISTRIBUTION CAPABILITIES

LEVERAGING ON POSTE'S CUSTOMERS, SALESFORCE AND PAYMENTS LEADERSHIP

POSTAL DISTRIBUTION ACCESS TO CUSTOMERS

Full Italian territorial coverage

Wide distribution network covering all of Italy with 12,822 Post Offices

Synergies across the value chain between mail and parcel network with 2,000+ delivery centers

Significant commercial network in Italy, covering individuals and companies

Leadership in e-commerce with 30% market share and outstanding know how in parcel

Union Agreements introducing flexibility in terms of delivery

Expertise and leadership in payments with 10 online payment options and 25% market share

AMAZON VIDEO

COMPREHENSIVE NETWORK TRANSFORMATION, LEVERAGING JOINT MAIL & PARCEL APPROACH, TO DELIVER IMPROVED PERFORMANCE

NETWORK TRANSFORMATION KEY INITIATIVES

Segment revenue/FTE to increase from around €60,000 in 2017 to around €68,000 in 2022

NEW JOINT DELIVERY MODEL DIFFERENTIATED APPROACH BASED ON DELIVERY AREA

Large metro areas (8% of pop., ~600 daily items/km2 )

• Daily additional afternoon delivery (parcels and registered)

Urban areas (68% of pop., 80 daily items/km2 )

Alternate day morning delivery (standard mail)

Daily additional afternoon delivery (parcels and registered)

Weekend delivery Weekend delivery

Reduced labor costs thanks to the new Joint Delivery Model

Increased flexibility through variable staffing and dynamic re-routing

Improved service levels thanks to better scheduling in large metro and urban areas

Regulated / Rural areas

(24% of pop., 10 daily items/km2

)

SORTING AUTOMATION AND STREAMLINING KEY INITIATIVES

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LOGISTIC OPTIMIZATION KEY INITIATIVES

FOCUS ON CUSTOMER-DRIVEN QUALITY APPROACH AND PRODUCT OFFER TO DRIVE B2C GROWTH AND COUNTER MAIL DECLINE

COUNTERING DECLINE IN MAIL KEY INITIATIVES

• > Introduction of new products, based on Public Administration needs, and implementation of new value added features on existing products
• > Repricing of Universal Service Obligation covered products
• > Offer rationalization through simplification of overlapping products and re-engineering of non-optimized processes

18

DELIVERING SIGNIFICANT B2C GROWTH KEY INITIATIVES

Strong commercial effort to gain new customers and increase quality

• > Joint and weekend delivery to increase efficiencies and maximize customer experience
• > Leverage on Amazon partnership and consider extension to other e-commerce players
• > Expanded product portfolio (including alternative delivery options)
• > Integration of product offering with SDA2 taking a "one-company" approach
• > Leverage already available air cargo routes to guarantee J+1 parcels delivery

SIGNIFICANT INVESTMENTS TO REACH CLEAR AND REALISTIC TARGETS

INVESTMENT PLAN SIGNIFICANT INVESTMENT TO SUPPORT TRANSFORMATION

Capex = 5% of segment revenue

MAIN PROJECTS

• > New Joint Delivery Model
• > New parcel hubs
• > Mixed mail plants
• > Operational excellence program
• > 3-wheeled vehicles
• > Safety Plan
• > Migration to Cloud services2

SEGMENT REVENUE TARGETS AND COST OF LABOR EVOLUTION SUSTAINABLE BUSINESS MODEL COMBINING MAIL & PARCEL

Segment revenue/FTE to increase from around €60,000 in 2017 to around €68,000 in 2022

• > Achieving stable segment revenue
• > Parcel growth sustained by B2C
• > Mail decline substantially in line with historical trend
• > Comprehensive network transformation drives sizeable FTE reduction

KEY PERFORMANCE INDICATORS MONITORING ACROSS THE TRANSFORMATION

DELIVER 2022 - MAIL, PARCEL & DISTRIBUTION

LEVERAGE UNIQUE DISTRIBUTION CAPABILITIES TO CAPTURE OPPORTUNITIES FROM POSTAL SECTOR EVOLUTION

COMPREHENSIVE NETWORK TRANSFORMATION, LEVERAGING JOINT MAIL & PARCEL APPROACH, TO DELIVER IMPROVED PERFORMANCE

FOCUS ON CUSTOMER-DRIVEN QUALITY APPROACH AND PRODUCT OFFER TO DRIVE B2C GROWTH AND COUNTER MAIL DECLINE

SIGNIFICANT INVESTMENTS TO REACH CLEAR AND PRAGMATIC TARGETS

DELIVER 2022 - FINANCIAL & INSURANCE DISTRIBUTION POSTE ITALIANE. THE MOST EFFECTIVE AND TRUSTED DISTRIBUTION PLATFORM

Andrea Novelli – BancoPosta CEO Milan, February 27th 2018

DELIVER 2022 - FINANCIAL & INSURANCE DISTRIBUTION

BETTER CAPITALIZE ON OUR MARKET LEADING DISTRIBUTION NETWORK AND STRATEGIC MARKETING CAPABILITIES TO UNLOCK VALUE AND GROWTH

EXPAND AND RENEW PRODUCT OFFER, COVERING ALL CONSUMER FINANCIAL NEEDS

ORGANIZATIONAL RESTRUCTURING TO FOCUS ON HIGHLY EFFECTIVE COMMERCIAL FRONTLINE WITH UPGRADED PHYSICAL NETWORK

DELIVER SUSTAINABLE CAPITAL LIGHT GROWTH BUILT ON RISING MARGINS AND EXPANDED OFFER

bn unless otherwise stated	2017	2022	CAGR 17-22
ADJUSTED GROSS REVENUE1 EXCLUDING CAPITAL GAINS	5.4	6.4	+3.6%
TFA	506	581	+3%
PRODUCT SALES (# m)	8	>12	> +8%

BETTER CAPITALIZE ON OUR MARKET LEADING DISTRIBUTION NETWORK AND STRATEGIC MARKETING CAPABILITIES TO UNLOCK VALUE AND GROWTH

SUPPORTIVE MARKET AND MACRO TRENDS

	Shrinking physical banking networks1	-17%
MARKETS	Regulation driving transparency on cost and investment performance	Mifid II started Jan 2018 IDD starting Oct 2018
	Low non-motor P&C penetration2	0.9% 2.1% VS
	Low household debt levels3	41.3% 57.9% VS
	Italian economy recovering4	+1.5% GDP growth 2017
MACRO	Growing Italian wealth with an increasing penetration of AuM5	Annual growth +2.4% in financial assets 17-20
	Expected moderate increase in interest rates6	2022 vs 2018 10y IRS +0.6%

1 163 banks; Source: Banca d'Italia, 01/12–09/16, classified as "SpA banks" 2 P&C non motor premiums/GDP. ANIA "L'Assicurazione italiana 2016-2017" 3 Household debt on GDP 2017

05

4 Real GDP growth for Italy; ISTAT, 2017 figures 5 Annual expected growth of financial assets 2017-2020; Prometeia, 2017, Wealth Insights 6 Source: 10Y interest rate SWAP Forward Curve as of January 25th 2018; 2018: 1.2%, 2022 1.8%

PRODUCT OFFER AND CHANNELS ADAPTED TO ALL AGE BRACKETS LEVERAGING CUSTOMER DATA & ANALYTICAL CAPABILITIES

SEGMENTED STRATEGIC MARKETING APPROACH LEVERAGING CUSTOMER DATA & ANALYTICAL CAPABILITIES

CUSTOMER BASE

1 Private: TFA >€500K; Affluent: TFA between €75K and €500K or selected prospects with TFA <€75K; Lower Mass: monoproduct clients with less than €2.5K, excluding current account holders; Mass: remaining retail clients

2 TFAs under management or administration (excl. certificates, bonds, securities, REPO). Bearer postal bonds have been proportionally assigned across retail segments 3 Includes TFA from non retail Clients and non-Client-driven TFA

07

LARGEST DISTRIBUTION NETWORK WITH HIGH VOLUME CUSTOMER VISITS	Post Offices 12,822 Customer visits to Post Offices / daily average 1.5 m
NUMBER 1 IN AREAS OF HIGH NET WORTH	45% of Italian wealth1 in cities where Poste has greater market share than top banks2
TRUSTED BRAND	1 Clients consider Poste Italiane to be financially sound and reliable3

1 Corresponding to ~55% of Italian cities

08

2 Expressed as branches market share (i.e., municipalities where the number of post offices is greater than the number of branches of Banco Popolare,

BNL, BPER, BPM, Carige, Credit Agricole, CREDEM, Intesa Sanpaolo, Monte dei Paschi di Siena, UBI and UniCredit)

3 Source: Brand image and banking reputation research (DOXA 2017); Vote 7.7 for financially sound and vote 7.4 for reliability

EXPAND AND RENEW OUR PRODUCT OFFER, COVERING ALL CONSUMER FINANCIAL NEEDS

INCREASED OFFER COVERING ALL FINANCIAL NEEDS

IN LINE WITH MARKET AND MACRO OPPORTUNITIES

FOCUS ON PRODUCT STRUCTURING & DISTRIBUTION

LEVERAGE ON CAPTIVE PRODUCT FACTORY FOR INSURANCE AND BEST-IN-CLASS THIRD PARTY PROVIDERS

Increasing margins on postal savings through new CDP agreement

Increase penetration of life insurance and mutual funds

Consolidate life insurance by adjusting Class I and Class III product mix

Consolidate already strong position in private pension plans

NEW CDP AGREEMENT REVAMPING PROGRAM ALREADY AT FULL SPEED, YIELDING ENCOURAGING EARLY RESULTS

Revenue expected in the higher part of the range (floor: €1.55 bn – cap: €1.85 bn) At least €1.8 bn annual fees in 2018

LOAN AND MORTGAGE DISTRIBUTION CAPITAL LIGHT MODEL WITH NO CREDIT RISK

DISTRIBUTION BUSINESS MODEL

• > Capital light business model with no credit risk for Poste Italiane
• > Upfront revenue on distribution
• > Proprietary platform to coordinate multipartner offering

Increase diversification of providers to ensure best in class customer offer

Relaunch mortgage business to increase cross selling potential

Improve branch activation and lift productivity towards best practices

Invest in marketing and advertising to drive additional growth

• > "Smart" distribution model balancing white label vs Group products to optimize technical results
• > Upfront revenue on distribution

16

> Progressive development of internal know how within product factories

Strengthen employee benefits and welfare offer

Complete the retail offering with motor and new property products

Introduce flexible products targeted at SMEs, tailored to specific industries

Ramp up branch activation, productivity and average value of sales ORGANIZATIONAL RESTRUCTURING TO FOCUS ON HIGHLY EFFECTIVE COMMERCIAL FRONTLINE WITH UPGRADED PHYSICAL NETWORK

A STREAMLINED ORGANIZATIONAL STRUCTURE

REDUCED NUMBER OF REGIONS1

18

Rationalization of administrative areas

Branch optimization to reduce overlap in large cities to reduce overlap in medium and large cities >3,000 FTEs REDEPLOYED TO COMMERCIAL FRONT-LINE ACTIVITIES

No changes to small cities2 coverage

SEGMENT ORIENTED SERVICE MODEL NEW MODEL CENTERED ON CLIENT RELATIONSHIP

1 Banca d'Italia (Financial wealth, Banking network); ISTAT (Region and Population) 2 Relationship Manager

19

INCREASED CLIENT COVERAGE MODEL FRONT-LINE STAFF INCREASE AND INVESTMENT IN SKILLS DEVELOPMENT

20

SUPPORTING COMMERCIAL FRONTLINE INVESTMENT IN IT AND DATA CAPABILITIES

IT capex for Financial & Insurance Services throughout 18-22 > €0.5 bn

NEW LAYOUT AND A MULTI-CHANNEL CUSTOMER JOURNEY VIDEO

DELIVER SUSTAINABLE CAPITAL LIGHT GROWTH BUILT ON RISING MARGINS AND EXPANDED OFFER

1 Not including capital gain from investment portfolio (2017: €0.5bn; 2022: €0bn) and capital gain from Mastercard stake disposal (2017: €0.1bn; 2022: €0bn)

2 Including revenue from BdM-MCC consolidation (Loan and mortgage distribution CAGR withouth BdM-MCC: 13%)

3 Including capital gain from Mastercard stake disposal

24

FINANCIAL TARGETS AND KPIS FINANCIAL SEGMENT PERIMETER

25 1 Non recurring items: capital gains investment portfolio (2017: €0.5bn; 2018: €0.4bn; 2020: €0.3bn; 2022: €0bn); capital gain stake disposal (2017: €0.1bn; 2018: €0.1bn) 2 Segment revenue financial + insurance, excluding interest income, per client, excluding lower mass segment

DELIVER 2022 - FINANCIAL & INSURANCE DISTRIBUTION

BETTER CAPITALIZE ON OUR MARKET LEADING DISTRIBUTION NETWORK AND STRATEGIC MARKETING CAPABILITIES TO UNLOCK VALUE AND GROWTH

EXPAND AND RENEW PRODUCT OFFER, COVERING ALL CONSUMER FINANCIAL NEEDS

ORGANIZATIONAL RESTRUCTURING TO FOCUS ON HIGHLY EFFECTIVE COMMERCIAL FRONTLINE WITH UPGRADED PHYSICAL NETWORK

DELIVER SUSTAINABLE CAPITAL LIGHT GROWTH BUILT ON RISING MARGINS AND EXPANDED OFFER

DELIVER 2022

Roberto Giacchi - CFO Milan, February 27th 2018

DELIVER 2022 - FINANCE

ENSURE PRAGMATIC FINANCIAL TARGETS AND KPIs ACROSS KEY BUSINESS ACTIVITIES ARE ACHIEVED

PRESERVE COST DISCIPLINE AND EFFECTIVE CAPITAL ALLOCATION

MAINTAIN AN EFFICIENT AND STRONG BALANCE SHEET ACROSS ALL BUSINESS SEGMENTS WHILE DISTRIBUTING GROWING ANNUAL DIVIDENDS

KEY CONSOLIDATED FINANCIAL TARGETS

bn unless otherwise stated	2017	2018	2020	2022	CAGR 17-22
REVENUE	10.6	10.7	10.9	11.2	+1%
EBIT EBIT MARGIN %	1.1 11%	1.4 13%	1.6 15%	1.8 16%	+10%
NET PROFIT ROE %1	0.7 10%	1.0 13%	1.1 13%	1.2 13%	+13%
		18-20		21-22
DIVIDEND (€/SHARE)	0.42	+5% PerAnnum	Minimum	Payout 60%

PLAN BASED ON REALISTIC MACRO ASSUMPTIONS

SEGMENT REORGANIZATION ALIGNING REPORTING WITH NEW STRATEGIC VISION

2017 REVENUE BREAKDOWN

KEY HIGHLIGHTS

• > The new Payments, Mobile & Digital segment has been established thanks to the combination of PosteMobile and the Payments business from the Financial Segment
• > Insurance premiums and incomes will be reported net of changes in Technical Reserves
• > Asset Management shifts from Insurance to Financial
• > Mail & Parcel is now called Mail, Parcel & Distribution

ENSURE PRAGMATIC FINANCIAL TARGETS AND KPIs ACROSS KEY BUSINESS ACTIVITIES ARE ACHIEVED

PRAGMATIC & ACHIEVABLE TARGETS ACROSS BUSINESS SEGMENTS

OVERVIEW OF VALUE DRIVERS AND FINANCIAL TARGETS

SEGMENT	VALUE DRIVERS	KEY FINANCIAL TARGETS
TURNAROUND IN MAIL AND GROWTH IN PARCEL	Execute a costs savings plan based on FTE reduction > > Operating model innovation to meet e-commerce market opportunities (Joint Delivery Model) > Significant capex plan to fuel network transformation	> -1% Segment Revenue CAGR 17-22 > EBIT 2022 approaching breakeven
GROWTH IN PAYMENTS, MOBILE & DIGITAL	> Evolution from legacy payments to digital payments Develop innovative digital solutions for - the fast growing e-payments market - Defend highly cash generating legacy products > Telecoms business development & integration with digital payments	> +8% Segment Revenue CAGR 17-22 > +1% EBITDA and EBIT CAGR 17-22
RESILIENT FINANCIAL SERVICES RESULTS	Growth of TFA and increased quality of revenue supported by > product offer broader > Capitalize on upgraded market leading distribution network > Reduced reliance on capital gains	> +3% TFAs growth > Stable Segment Revenue in 17-22 > +1% Net Profit CAGR 17-22
CONSOLIDATE LEADERSHIP IN LIFE AND DEVELOP P&C BUSINESS	> Change mix of net production in Life insurance, towards Class III products Develop Private Pension Plan business > Leverage PosteVita's success in P&C segment >	> +6% Net Premiums and Financial Income CAGR 17-22 > +4% Net Profit CAGR 17-22

MAIL, PARCEL & DISTRIBUTION TURNAROUND IN MAIL AND GROWTH IN PARCEL

bn unless otherwise stated

KEY HIGHLIGHTS

• > Mail & Parcel revenue will stabilize at the end of the Deliver 2022 plan thanks to the continued growth of Parcel activity
• > EBIT close to break-even in 2022 thanks to significant reduction in costs and growing distribution revenue from other segments

08 1) Includes, Philately, Patenti Via Poste, Poste Motori, Mistral and other revenue (2) Includes income paid by Other Segments in return for use of the distribution network and Corporate Services

GROWTH IN PAYMENTS, MOBILE & DIGITAL

bn unless otherwise stated

KEY HIGHLIGHTS

> Strong growth in card payments offsetting decline in revenue from traditional products

• > Telecom revenue will grow with a CAGR 2017-2022 of 4%
• > Profitability remains level throughout plan

RESILIENT FINANCIAL SERVICES RESULTS

bn unless otherwise stated

10

• Reduced reliance on non-recurring items, primarily Capital Gains

• Maintain overall volumes and margins thanks to:

• Increasing commission income from placement of Postal Savings products

• Increasing fees from sale of Asset Management products

• Increasing fees from third party product distribution

• Interest income benefiting from active portfolio management

GROWTH IN TFA DRIVEN BY WEALTH MANAGEMENT SOLUTIONS

€ bn unless otherwise stated

STABLE REVENUE FROM BANCOPOSTA'S INVESTMENT ACTIVITIES

€ bn unless otherwise stated

EVOLUTION OF REVENUE FROM INVESTMENT ACTIVITIES

KEY HIGHLIGHTS

• > Growth of investment portfolio and sound portfolio management have stabilized interest income and capital gains over time
• > Well balanced portfolio currently invested 45% in floating rate and 55% in fixed rate instruments

1 Annual average, includes Public Administration deposits with the Ministry of the Economy and Finance;

2 Includes interests from deposits with the Ministry of the Economy and Finance;

3 Average annual figures;

12

4 Return is calculated on the bond portfolio and excludes capital gains

REVENUE FROM INVESTMENT ACTIVITIES IS RESILIENT

€ bn unless otherwise stated

KEY HIGHLIGHTS

• > Base scenario: the 10Y IRS forward curve and a flat credit spread of 130bps over the plan
• > Two base case stress test scenarios were carried out applying:
• > An additional 150bps spread
• > A drop of 100bps spread
• > The shocks have limited impact and the plan would, in any case, deliver resilient and consistent results

> Active portfolio management to offset the shortfalls not applied

CONSOLIDATE LEADERSHIP IN LIFE AND DEVELOP P&C BUSINESS

€ bn unless otherwise stated

KEY HIGHLIGHTS

• > Consolidated growth in Life products
• > Robust growth in Private Pension Plans and P&C products
• > Solid growth in EBIT and Net Profit
• > P&C combined ratio averaging 87% during the plan

EBIT EVOLUTION 2017 VS 2022 KEY EBIT GROWTH DRIVERS

FOCUS ON COST DISCIPLINE AND EFFECTIVE CAPITAL ALLOCATION

COSTDISCIPLINE COST SAVINGS ACROSS BOTH HR AND OTHER OPERATING COSTS

bn unless otherwise stated

17

KEY HIGHLIGHTS

• > Strong focus on cost savings both in HR and other operating costs
• > Provisions for early retirement incentives will decrease from €0.5 bn in 2017 to €0.1 bn in 2022
• > Ordinary HR costs will decrease from 53% of revenue in 2017 to 49% of revenue in 2022
• > Other operating costs remaining flat, but decreasing as a % of revenue

COSTDISCIPLINE COST DECREASE DUE TO HEADCOUNT REDUCTION

bn unless otherwise stated

KEY HIGHLIGHTS

> Net average FTE reduction of about 15,000

> Decrease in headcount leveraging on

• Non-renewal of fixed-term contracts
• Subsidized exits and natural turnover
• > Over 10,000 new hires planned, focusing on specialist expertise

KEY HIGHLIGHTS

• > Labor cost per employee to moderately increase over the plan horizon
• > Increasing workforce flexibility offsetting higher labor costs

> Material increase in value added per employee over the plan horizon

19

EFFECTIVE CAPITAL ALLOCATION SIGNIFICANT CAPITAL ALLOCATION TO SUPPORT DELIVER 2022 STRATEGY

bn unless otherwise stated

€ bn unless otherwise stated	18-22
IT INFRASTRUCTURE TRANSFORMATION	> 0.5
MAIL & PARCEL OPERATIONS REENGINEERING AND AUTOMATION	> 0.5
KEY PROCESSES SIMPLIFICATION AND DIGITALIZATION	> 0.3
NEW POSTAL OFFICES SERVICE MODEL	> 0.2
«ONE COMPANY» AND CUSTOMER CENTRICITY	> 0.1

60% OF CAPEX TO COVER THESE FIVE AREAS

MAINTAIN AN EFFICIENT AND STRONG BALANCE SHEET ACROSS ALL BUSINESS SEGMENTS WHILE DISTRIBUTING GROWING ANNUAL DIVIDENDS

SOLID AND EFFICIENT BALANCE SHEET ACROSS BUSINESS SEGMENT GROUP OVERVIEW

Gruppo

All segments will contribute to Poste's new dividend policy while maintaining a strong Balance Sheet and an efficient Group capital structure

BANCOPOSTA: A LOW RISK BALANCE SHEET AS AN ASSET GATHERER

bn unless otherwise stated

CET 1 RATIO LEVERAGE RATIO 17% 19% 2017 2022

POSTEVITAGROUP:KEY ITEMSANDSOLVENCYRATIO

bn unless otherwise stated

POSTEVITAGROUP: ARESILIENT CAPITAL POSITION TO SUPPORT GROWTH

STRESS SCENARIO

• > Solvency Ratio to decrease over the plan horizon, due to the expected increase in capital requirement
• > Strong balance sheet showing great resiliency and decreasing volatility in capital position under stress scenarios
• > Increasing resiliency driven by higher product and investment diversification in the next five years

CAPITAL REQUIREMENTS FOR PAYMENT SERVICES

€1 bn capital injection to PosteVita committed by Poste Italiane if the SCR will drop under Risk Tollerance Level of 130%

SOLID CASH GENERATION TO SUPPORT DIVIDENDS

Ability to pay a growing dividend comes from rising Net Profit and solid cash generation

DELIVER 2022 - FINANCE

ENSURE PRAGMATIC FINANCIAL TARGETS AND KPI BUSINESS ACTIVITIES ARE ACHIEVED

PRESERVE COST DISCIPLINE AND EFFECTIVE CAPITAL ALLOCATION

MAINTAIN AN EFFICIENT AND STRONG BALANCE SHEET ACROSS ALL BUSINESS SEGMENTS WHILE DISTRIBUTING GROWING ANNUAL DIVIDENDS

DELIVER 2022 REWARD STRATEGY

Matteo Del Fante, CEO Milan, February 27th 2018

RESHAPING REWARD STRATEGY A REWARD STRATEGY TO SUPPORT GROWTH

ELIGIBILITY	Engage up to 200+ strategic employees on Deliver 2022 targets
VESTING PERIOD	3 and 5 years of performance period & 2 years deferral period
PERFORMANCE MEASURES	Achievement of 5 years Deliver 2022 targets (EBIT as a threshold): > Revenues (weight 60%) > Cost Reduction (weight 40%)
	> 75% at the end of performance period and 25% after deferral period
PLAN IMPLEMENTATION	> "Cash convertible": AGM to decide cash to be converted into shares1 > Clawback clause

1 The BoD, by the end of the vesting period, may submit to the AGM, to convert – for all beneficiaries – the entire amount of the awards or part of them into Poste Italiane's shares.

Please note: for regulated business (eg. BancoPosta) above rules will be adjusted to regulatory provisions

03

DELIVER 2022 Glossary

Milan, February 27th 2018

Numbers in the presentations may not add up only due to roundings

GLOSSARY 1/8

#	Number	B2B	Business to Business
4G/5G	Mobile communication standards (fourth and fifth generation	B2C	Business to Consumer
	of broadband cellular network technology)	Banca d'Italia	Italy's Central Bank
AN/Anima	Italian player in the asset management industry	Big Data	Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior
ANIA	Associazione Nazionale Imprese Assicuratrici		and interactions
ATM	Automatic Teller Machine	bn	Billion
AuM	Assets under management	BTP	Buoni del Tesoro Pluriennali
		CAGR	Compound Annual Growth Rate
Av.	Average	C2C	Consumer to Consumer

GLOSSARY 2/8

Capex Capital Expenditure

• Capital A process of how businesses allocate allocation their financial resources to different processes, people, projects and division
• Capital gains Income resulting in a realized gains on the sale of securities
• Cards Debit, credit and prepaid cards
• CDP Cassa Depositi e Prestiti
• CET1 Common Equity Tier1
• Class I Class I life insurance: contracts of insurance or to pay annuities on human life, where the benefits are not determined by references to

the value of, or the income from, property of any description or by reference to fluctuations in, or in an index of, the value of property of any description

Class III Class III life insurance: contracts of insurance or to pay annuities on human life where the benefits are wholly or party to be determined by references to the value of, or the income from, property of any description or by reference to fluctuations in, or in an index of, the value of property of any description

Digital Electronic communications including Channel web and apps

GLOSSARY 3/8

Digital ecosystem	An interdependent group of enterprises, people and/or things that share standardized digital platforms for a	EBITDA	Earning Before Interest, Tax, Depreciation and Amortization
	mutually beneficial purpose, such as commercial gain, innovation	ECRI	European Credit Research Institute
	or common interest	eID	Electronic Identification - a tool that ensures secure access to online
Digital transactions	Transactions made without the need for cash		services and to carry out electronic transactions in a safer way, at a European level
Doxa	Market research company founded in 1946 in Italy	Equity share	A share that gives the person who owns it the right to receive part of a company's profits and to vote at
Early retirement	Non recurring charges to encourage workers to retire before the normal		shareholder meetings
incentives	retirement age	EU	European Union
EBIT	Earning Before Interest and Tax

04

GLOSSARY 4/8

E-wallet	An electronic tool which is used for
	transactions made online through a
	computer or a smartphone

Fixed rate Interest rate that remains at a set level for a specified period of time.

Floating rate Interest rate that is reset at specified periods of time based on a pre-determined parameter

FTE Full Time Equivalent GDP Gross Domestic Product

Gross Revenue accounted by a business Revenue unit including intra company revenue

GWP Gross written premium

Headcount	Total number of people employed in a specific organization
Household debt	Combined debt of all people in a household. It includes consumer debt and mortgage loans
Households disposable income	Sum of household final consumption expenditure and savings, after tax
ICT	Information and communication technology
IDD	Insurance distribution Directive

GLOSSARY 5/8

Intersegment	The transfer or exchange of goods for
revenue	monetary compensation from one
	segment in a company to another
	segment within the same company

IRS Interest rate swap - a financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another

ISTAT The National Institute for Statistics (Istat) is the main supplier of official statistical information in Italy

Items/km2 Items per square kilometer

IT System J+1	Information Technology System Jour plus one - day after delivery
k	Thousand
KPI	Key Performance Indicator
Life insurance & investments	Insurance policies and mutual funds
Life techical reserves	Amounts that the insurer sets aside to cover liabilities to policyholders in the context of life insurance policies where the value of the return is determined by reference to investments for which the policyholder bears the risk, and reflects the present value of the expected future benefits

GLOSSARY 6/8

m	Million	Net Financial Position	Equals to cash and cash equivalents minus short term and long term
MBO	Management by objectives		financial liabilities
MBPS	Megabits per second - A unit of measurement for bandwidth and throughput on a network	Net inflows	Net of all cash inflows and outflows in and out of a financial asset
MiFID II	Markets in Financial Instruments Directive II	Net interest Income	Net interest income ("NII") is the difference between the interest income earned on investments and interest expenses paid to depositors or other
Mutual funds	Investment vehicle made up of a pool of money collected from many investors		providers
	for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets	Adjusted revenue	Revenue excluding non recurring items
		o/ w	Of which
MVNO	Mobile Virtual Network Operator

GLOSSARY 7/8

Ovum	An independent analyst and consultancy firm headquartered in London, specializing in global coverage of IT and telecommunications industries	Pension fund	An investment product into which scheme members pay contributions in order to to provide an income in retirement
P&C	Property and casualty insurance	PI	Poste Italiane
P2P	Postepay-to-Postepay: Instant money transfer from a Postepay Card to another Postepay Card	PO	Post Office - Sales network of Poste Italiane
PA	Public Administration	pop.	Population
Payout ratio	Dividends paid to shareholders relative	Postal Savings	Saving books and Postal bonds
	to net income	Postemobile	An Italian based mobile virtual network
pcs	Pieces		operator launched on November 2007 by the owner Poste Italiane

GLOSSARY 8/8

Poste Vita	PosteVita - insurance company owned by Poste Italiane	Segment Revenue	Revenue accounted by a business unit excluding intracompany revenue
Postevita's FIP	Fondo Integrativo Pensioni (i.e., Supplementary Retirement Fund)	SME	Small and Medium Enterprise
PP/PP evo	Poste Pay / Poste Pay Evolution:	TFA	Total Financial Assets
	Pre-Paid Cards of Poste Italiane	USO	Universal Service Obligation
REPO	Repurchase Agreement	vs.	Versus
RM	Relationship Manager	WCIS	World Cellular Information Service
ROE	Retun on Equity
RWA	Risk-weighted asset	YoY	Year on year
SDA	Express courier which provides express mail and package delivery