Poste Italiane — Investor Presentation 2021

Feb 17, 2021

POSTE ITALIANE Q4 & FY20 FINANCIAL RESULTS

Rome, February 17, 2021

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

SOLID PERFORMANCE IN UNPRECEDENTED TIMES – CONFIRMING ROLE OF SYSTEMIC PLAYER IN ITALY

REVENUES UP IN Q4 – RESUMING AN UPWARD TRAJECTORY

ALL SEGMENTS CONTRIBUTING TO POSITIVE QUARTERLY EBIT PROGRESSION

YEARLY NET PROFIT OF € 1.2BN

PROPOSED DISTRIBUTION OF € 0.486 DIVIDEND ON FY20 (+5% Y/Y), PAYOUT RATIO AT 52%1,2

1. Key dates related to the balance of the 2020 dividend: ex date: June, 21; record date: June, 22; payment date: June, 23 2. Subject to AGM approval

POSTE ITALIANE: THE ITALIAN SYSTEMIC PLAYER – ALWAYS OPEN FOR BUSINESS 2020 KEY HIGHLIGHTS

1. Excluding ATM withdrawals

Q4-20 & FY-20 RESULTS OVERVIEW

ACCELERATED OPERATING PERFORMANCE BEGINNING IN Q4-20 – CONTRIBUTING TO RESILIENT 2020 RESULTS

€ m unless otherwise stated

Var. (%)
(4.0%)
(2.0%)
(14.1%)
(10.2%)
POSITIVE INCOME TAX

SEGMENT REVENUES EVOLUTION

CONTINUED POSITIVE REVENUE PROGRESSION BEGINNING IN H2

PAYMENTS & MOBILE INSURANCE SERVICES

1. Revenues differ from previously communicated figures as revenues are now presented net of interest income charges and capital losses on investment portfolio, which were previously included among costs. As a result, figures for 2019 have been restated

BUSINESS TRENDS IN FY20: MAIL, PARCEL & DISTRIBUTION

COMMERCIAL ACTIVITIES BACK ON TRACK – PARCEL BOOST CONTINUES, OFFSETTING MAIL DECLINE

DISTRIBUTION CHANNELS (DAILY AVG, M/TRANSACTIONS)

1. Includes recorded mail and integrated services (value added); 2. Includes unrecorded mail, direct marketing and editorial; 3. Includes multichannel service, basic services, Postel, other integrated services; 4. Includes C2X, International, other

BUSINESS TRENDS: PAYMENTS & MOBILE, FINANCIAL AND INSURANCE SERVICES

COMMERCIAL ACTIVITIES CONTINUE TO SHOW TANGIBLE SIGNS OF RECOVERY

GROSS INVESTMENT INFLOWS (DAILY AVG, €/M)

POSTEPAY DAILY AVG E-COMMERCE TRANSACTIONS (K/#)

P&C NEW BUSINESS RETAIL (DAILY AVG, K/€)

TELCO: CUSTOMER BASE (M/#)

8

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

MAIL, PARCEL & DISTRIBUTION

IMPROVING EBIT IN Q4-20 – RECORD HIGH PARCEL REVENUE GROWTH FULLY OFFSETTING MAIL DECLINE

€ m unless otherwise stated

MAIL, PARCEL & DISTRIBUTION: VOLUMES AND PRICING

1. Including any product mix effect

UNPRECEDENTED PARCEL GROWTH BOOSTED BY B2C – MAIL VOLUMES DOWN IN LINE WITH Q3

PARCEL VOLUMES EVOLUTION

RECORD B2C – INBOUND FROM CHINA CONTRIBUTING TO CUSTOMER BASE DIVERSIFICATION

DAILY AVERAGE PARCEL VOLUMES EVOLUTION (K/PC)

12

MAIL VOLUMES EVOLUTION

MAIL VOLUME TREND IMPACTED BY HIGHER MARGIN PRODUCT DECLINE, PARTLY EXPECTED TO RECOVER IN 2021

DAILY AVERAGE MAIL VOLUME EVOLUTION (M/PC)

PAYMENTS & MOBILE ACCELERATED DIGITAL PAYMENTS LEADING TO IMPROVING PERFORMANCE

€ m unless otherwise stated

FINANCIAL SERVICES RESILIENT OPERATING PERFORMANCE, SUCCESSFULLY NAVIGATING A CHALLENGING YEAR

1. Figures presented include intersegment distribution revenues 2. Revenues differ from previously communicated figures as revenues are now presented net of interest income charges and capital losses on investment portfolio, which were previously included among costs. As a result, figures for 2019 have been restated 3. Includes revenues from payment slips (bollettino), banking accounts related revenues, fees from INPS and money transfers, Postamat 4. Includes reported revenues from custody accounts, credit cards, other revenues from third party products distribution.

GROUP TOTAL FINANCIAL ASSETS

RECORD HIGH NET INFLOWS AND MARKET EFFECT RESULTING IN € 33BN TFA INCREASE

Eop data, € bn unless otherwise stated

HIGHLIGHTS (item by item)

• TFAs up on both positive net inflows and performance effect
• Strong postal bonds new production mitigating redemptions with record low net outflows
• Deposits increasing with continued preference for liquidity products
• Net technical provisions up, thanks to positive net inflows and market effect

INSURANCE SERVICES FY20 OPERATING PROFIT STABLE IN A CHALLENGING ENVIRONMENT

€ m unless otherwise stated

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

SOLVENCY II RATIO EVOLUTION

HIGHLIGHTS

• Solvency II ratio up to 279%, well above managerial ambition of 200% through the cycle, benefitting from spread narrowing across all asset classes (BTP, Corporates and high yield)
• Transitional measures to provide additional 32p.p. to address market volatility

18

SOLVENCY II RATIO KEY SENSITIVITIES

RESILIENT UNDER ALL ASSUMED SCENARIOS

SOLVENCY II RATIO SENSITIVITIES HIGHLIGHTS

• Solvency II ratio in line with risk tolerance under all assumed scenarios
• Transitional measures provide additional 32p.p. to address potential market headwinds
• Reduced Solvency II ratio volatility expected going forward supported by:
• portfolio diversification
• ongoing process to develop internal model
• new capital light products

ACCELERATED HEADCOUNT REDUCTION

AVERAGE HEADCOUNT ('000/FTE)

FY20 GROUP COSTS EFFECTIVE COST MANAGEMENT INITIATIVES MITIGATING REVENUE HEADWINDS

1. Excluding legal disputes with employees

2. Excluding other Non-HR operating costs amounting to 228m in FY-19 and 142m in FY-20

3. Due to the reassessment of residual life and residual value of real assets, partly offset by increased capex in the last years

SEGMENT EBIT EVOLUTION

CONTINUED OPERATING PROFIT PROGRESSION BEGINNING IN Q2

PAYMENTS & MOBILE INSURANCE SERVICES

€ m unless otherwise stated

POSTE ITALIANE SYSTEMIC ROLE CONFIRMED

ROBUST 2020 FINANCIAL RESULTS

2020 DIVIDEND POLICY CONFIRMED – DIVIDEND OF € 0.4861,2 FOR FY20

NEW STRATEGIC PLAN TO BE ANNOUNCED ON 19 MARCH

1. Key dates related to the balance of the 2020 dividend: ex date: June, 21; record date: June, 22; payment date: June, 23 2. Subject to AGM approval

EXECUTIVE SUMMARY

BUSINESS REVIEW

APPENDIX

POSTE ITALIANE TOP RANKING WITHIN MAJOR SUSTAINABILITY INDICES

POSTE GROUP: Q4-20 & FY20 ADJUSTMENTS

EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q4-19	Q4-20	€ m	%	FY19	FY20	€ m	%
REPORTED REVENUES	2,924	2,964	40	+1%	10,960	10,526	(434)	(4%)
NET CAPITAL GAINS ON INVESTMENT PORTFOLIO	84	131			339	365
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	2	(0)			10	(3)
VISA - CAPITAL GAIN ON SHARE DISPOSAL	0	0			1	0
ADJUSTED REVENUES	2,839	2,834	(5)	(0%)	10,609	10,164	(445)	(4%)
REPORTED COSTS	2,690	2,685	(6)	(0%)	9,186	9,002	(184)	(2%)
EARLY RETIREMENT INCENTIVES	328	423			342	434
REAL ESTATE FUNDS PROVISIONS	0	(18)			0	(32)
ADJUSTED COSTS	2,362	2,280	(82)	(3%)	8,844	8,600	(244)	(3%)
REPORTED EBIT	234	280	46	+20%	1,774	1,524	(250)	(14%)
ADJUSTED EBIT	477	554	77	+16%	1,765	1,564	(201)	(11%)
IMPAIRMENTS	(42)	0			(42)	19
TAX ONE-OFF BENEFIT	0	(96)			0	(96)
REPORTED NET PROFIT	259	308	49	+19%	1,342	1,206	(136)	(10%)
ADJUSTED NET PROFIT	380	408	28	+7%	1,281	1,158	(122)	(10%)

STRONG CASH GENERATION, AMPLE LIQUIDITY RESOURCES AND BALANCED DEBT PROFILE

1. As of Dec-20

2. Debt capacity consistent with current rating (based on the Moody's credit opinion as of October 2020 and available for future potential financing operations)

MAIL, PARCEL & DISTRIBUTION NET CASH POSITION

€ m unless otherwise stated

NET CASH POSITION (+ CASH – DEBT)

Q4-20 GROUP COSTS EFFECTIVE COST MANAGEMENT INITIATIVES MITIGATING REVENUE HEADWINDS

1. Excluding other Non-HR operating costs amounting to 64m in Q4-19 and (9)m in Q4-20

2. Due to the reassessment of residual life and residual value of real assets, partly offset by increased capex in the last years

CARD STOCK¹

TOTAL CARD TRANSACTIONS (# BN)²

MOBILE & LAND LINE, STOCK (# M) POSTE ITALIANE DIGITAL E-WALLET (# M)³

PAYMENTS AND MOBILE: POSTEPAY TRANSACTION VALUE

POSTEPAY DAILY AVERAGE TRANSACTION VALUE (BASE 100)

Δ Y/Y

KEY METRICS CONSTANTLY IMPROVING

CUMULATED APP DOWNLOADS¹

REGISTERED ONLINE USERS (# M)

ELECTRONIC IDENTIFICATION² STOCK (# M)

(# M) DAILY ONLINE USERS (# M)

CONSUMER FIN. TRANSACTIONS (# M)

PRIVATE DIGITAL IDs (# M)

FINANCIAL SERVICES: Q4-20 & FY20 ADJUSTMENTS EXPLANATORY NOTES TO ADJUSTED FIGURES

	Q4-19	Q4-20	€ m	%	FY19	FY20	€ m	%
SEGMENT REPORTED REVENUES	1,351	1,349	(2)	(0%)	5,135	4,945	(190)	(4%)
NET CAPITAL GAINS ON INV. PORTFOLIO	84	131			339	365
VISA - FAIR VALUE VALUATION/ FAIR VALUE HEDGE	2	0			10	(3)
VISA - CAPITAL GAIN ON SHARES DISPOSAL	0	0			1	0
SEGMENT ADJUSTED REVENUES	1,265	1,218	(47)	(4%)	4,784	4,583	(201)	(4%)
INTERSEGMENT REVENUES	171	186	15	+9%	691	665	(25)	(4%)
ADJUSTED TOTAL REVENUES	1,436	1,404	(33)	(2%)	5,475	5,248	(226)	(4%)
REPORTED COSTS	1,274	1,248	(26)	(2%)	4,951	4,745	(207)	(4%)
EARLY RETIREMENT INCENTIVES	0	0			2	1
CAPITAL GAINS COMMISSIONING	65	104			265	289
REAL ESTATE FUNDS PROVISIONS	0	(18)			0	(32)
ADJUSTED COSTS	1,209	1,162	(47)	(4%)	4,685	4,487	(198)	(4%)
REPORTED EBIT	248	287	39	+16%	874	866	(9)	(1%)
ADJUSTED EBIT	228	242	14	+6%	790	761	(29)	(4%)
IMPAIRMENTS	0	0			0	19
TAX ONE OFF BENEFIT	0	(23)			0	(23)
REPORTED NET PROFIT	200	240	40	+20%	640	647	7	+1%
ADJUSTED NET PROFIT	186	186	(0)	(0%)	577	569	(8)	(1%)

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

PRUDENT ALM STRATEGY TO MATCH ASSETS AND LIABILITIES

€ bn unless otherwise stated

AVERAGE CURRENT ACCOUNT DEPOSITS AVERAGE INVESTMENT PORTFOLIO

Deposit @ MEF³

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 excluding Poste Italiane liquidity 4. Average yield calculated as interest income on average current account deposits

BANCOPOSTA ASSETS AND LIABILITIES STRUCTURE

NET UNREALIZED GAINS AT € 4.7BN

€ m unless otherwise stated

SWAP 30Y

0.63 0.04 (0.01) (0.03) (0.02)

POSTAL SAVINGS STRONG IMPROVEMENT OF NET INFLOWS, ALSO SUPPORTED BY PREFERENCE FOR LIQUIDITY PRODUCTS

AVERAGE POSTAL SAVINGS¹ POSTAL SAVINGS NET INFLOWS

€ m unless otherwise stated

ASSET MANAGEMENT PROGRESSING

POSITIVE NET INFLOWS IN A VOLATILE MARKET ENVIRONMENT

€ m unless otherwise stated

AVERAGE ASSETS UNDER MANAGEMENT ASSETS UNDER MANAGEMENT EVOLUTION – EoP

ASSET MANAGEMENT NET INFLOWS INCREASING IN Q4-20

POSITIVE NET INFLOWS THANKS TO MULTICLASS CLASS III COMPONENT OF INSURANCE PRODUCTS

€ m unless otherwise stated

AN ASSET GATHERER WITH A CAPITAL LIGHT BALANCE SHEET

INSURANCE SERVICES SOLVENCY II EVOLUTION

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

CHANGE VS. SEPTEMBER 2020 (€ M)

INSURANCE SERVICES: SOLVENCY II RATIO COMPOSITION

CORE SOLVENCY II RATIO UP TO 166%

INSURANCE SERVICES CONTINUED DIVERSIFICATION TOWARDS MORE CAPITAL EFFICIENT PRODUCTS

€ m unless otherwise stated

Multiclass

GROUP NET TECHNICAL PROVISIONS¹ LIFE NET TECHNICAL PROVISIONS EVOLUTION³

INSURANCE SERVICES

GROSS WRITTEN PREMIUM MIX IN Q4-20

INSURANCE SERVICES POSITIVE NET INFLOWS THANKS TO MULTICLASS INSURANCE PRODUCTS

€ m unless otherwise stated

INSURANCE SERVICES

LOW RISK INVESTMENT PORTFOLIO

11% 7% 82% Global govies Italian Govies Corporate bonds High yield Emerging markets Equity Private markets FY19 H1-20 9M-20 FY20 Var. YoY Minimum guaranteed return (Class I) (%) 0.67 0.61 0.60 0.57 (10)bps Segregated fund return (%) 2.38 2.19 2.22 2.16 (22)bps Inflation linked Fixed income Floating DURATION 8.8 YEARS DURATION 0.3 DURATION 3.4 YEARS INVESTMENT PORTFOLIO BREAKDOWN FIXED INCOME BREAKDOWN BY RATE TYPE DURATION: 7.7 YEARS 59% 59% 9% 7% 18% 19% 4% 5% 4% 5% 2% 2% 3% 4% FY19 FY20

YEARS

OPERATIONAL KPI's	Q4-19	Q4-20	Δ% YoY	FY19	FY20	Δ% YoY
Mail Volumes (#m) Parcels delivered by mailmen (#m) MAIL PARCEL & Parcel volumes (#m) DISTRIBUTION B2C Revenues (€m)	695 14 44 125	603 21 70 205	(13%) +49% +59% +63%	2,735 52 148 383	2,280 74 210 603	(17%) +44% +42% +57%
PostePay cards (#m) of which PostePay Evolution cards (#m) Total payment cards transactions (#bn) PAYMENTS & MOBILE of which eCommerce transactions (#m) Mobile & land-line (#m) Poste Italiane Digital e-Wallets (#m)				21.5 7.2 1.4 249.9 4.4 5.4	21.7 7.7 1.6 397.0 4.6 7.4	+1% +7% +9% +59% +5% +36%
Total Financial Assets - TFAs (€/bn) FINANCIAL Unrealized gains (€m) SERVICES				536 1,115	569 4,653	+6% +317%
Gross Written Premiums (€m) GWP – Life (€m) INSURANCE SERVICES GWP – Private Pension Plan (€m) GWP – P&C (€m)	4,064 3,659 351 54	4,475 4,044 378 53	+10% +11% +8% (3%)	17,972 16,643 1,088 240	16,898 15,566 1,095 237	(6%) (6%) +1% (1%)

INTERSEGMENT COSTS AS OF Q4-20

INTERSEGMENT COST FLOWS	INDICATIVE MAIN MAIN RATIONALE REMUNERATION SCHEME	€ m	Δ Y/Y
	• Payments and Mobile remunerates: a) Mail, Parcel and Distribution for providing IT, a) Number of payment transactions	a) 52	+10%
Mail, Parcel & Distribution	delivery volume and other corporates services1 ; flat fee (depending on the product) b) Financial Services for promoting and selling card b) Fixed % of revenues payments and other payments (e.g. tax payments) throughout the network;	b) 56 Total: 108	-
	• Insurance Services remunerates:
Payments & a) d) Mobile	c) Financial Services for promoting and selling insurance products2 and for investment management c) Fixed % of upfront fees	c) 130	+15%
g) e) Insurance h) Services	services3 ; d) Depending on service/product d) Mail, Parcel and Distribution for providing corporate	d) 14	n.m.
	services1 ;	Total: 143
f) c) b)	• Financial Services remunerates: e) Mail, Parcel and Distribution for promoting and e) Fixed % (depending on the selling Financial, Insurance and PMD products	e) 1,186	+2%
	throughout the network and for proving corporate product) of revenues services4 ; f) Depending on service/product f) Payments & Mobile for providing certain payment	f) 71	(14%).
Financial	services5	Total: 1,251
Services	• Mail, Parcel and Distribution remunerates:
	g) Payments & Mobile for acquiring services and g) Annual fee postman electronic devices	g) 9	(7%)
	h) Financial Services as distribution fees related to h) Flat fee for each «Bollettino» "Bollettino DTT"	h) 10	+11%
	1. Corporate Services such as communication, anti money laundering, IT, back office and call centers 2. Which, in turn, remunerates Mail, Parcel and Distribution 3. Investment management	Total: 19	49

services provided by BancoPosta Fondi SGR. 4. E.g. Corporate services are remunerated according to number of allocated FTEs, volumes of sent letters and communication costs 5. E.g. 'Bollettino'

€m	Q4-19	Q4-20	Var.	Var. %	FY19	FY20	Var.	Var. %
Total revenues	2,924	2,964	40	+1%	10,960	10,526	(434)	(4%)
of which:
Mail, Parcel and Distribution	937	950	13	+1%	3,492	3,201	(292)	(8%)
Payments and Mobile	187	215	28	+15%	664	737	74	+11%
Financial Services	1,351	1,349	(2)	(0%)	5,135	4,945	(190)	(4%)
Insurance Services	450	451	1	+0%	1,669	1,643	(26)	(2%)
Total costs	2,690	2,685	(6)	(0%)	9,186	9,002	(184)	(2%)
of which:
Total personnel expenses	1,776	1,760	(15)	(1%)	5,896	5,638	(258)	(4%)
of which personnel expenses	1,452	1,341	(111)	(8%)	5,561	5,204	(356)	(6%)
of which early retirement incentives	328	423	94	+29%	342	434	93	+27%
of which legal disputes with employees	5	3	(2)	(32%)	6	1	(5)	n.m.
Other operating costs	715	741	26	+4%	2,515	2,664	149	+6%
Depreciation, amortisation and impairments	200	183	(17)	(8%)	774	700	(75)	(10%)
EBIT	234	280	46	+20%	1,774	1,524	(250)	(14%)
EBIT Margin	+8%	+9%			+16%	+14%
Finance income/(costs) and profit/(loss) on investments accounted for using the equity method	76	25	(51)	(67%)	99	52	(46)	(47%)
Profit before tax	310	305	(5)	(2%)	1,873	1,576	(296)	(16%)
Income tax expense	51	(3)	(54)	(106%)	530	370	(160)	(30%)
Profit for the period	259	308	49	+19%	1,342	1,206	(136)	(10%)

E-MARKET SDIR
CERTIFIED

€m	Q4-19	Q4-20	Var.	Var. %	FY19	FY20	Var.	Var. %
Segment revenues	937	950	13	+1%	3,492	3,201	(292)	(8%)
Intersegment revenue	1,219	1,253	34	+3%	4,723	4,633	(90)	(2%)
Total revenues	2,156	2,203	47	+2%	8,215	7,833	(382)	(5%)
Personnel expenses	1,746	1,736	(11)	(1%)	5,782	5,539	(242)	(4%)
of which personnel expenses	1,418	1,313	(105)	(7%)	5,442	5,107	(335)	(6%)
of which early retirement incentives	328	422	95	+29%	340	432	92	+27%
Other operating costs	557	615	58	+10%	1,985	2,143	158	+8%
Intersegment costs	18	19	1	+6%	72	73	1	+2%
Total costs	2,321	2,370	49	+2%	7,838	7,755	(83)	(1%)
EBITDA	(165)	(167)	(2)	(1%)	377	78	(299)	(79%)
Depreciation, amortisation and impairments	186	178	(8)	(5%)	724	667	(58)	(8%)
EBIT	(351)	(344)	7	+2%	(347)	(588)	(241)	(69%)
EBIT MARGIN	(16%)	(16%)			(4%)	(8%)
Finance income/(costs)	(43)	6	49	n.m.	(36)	12	48	n.m.
Profit/(Loss) before tax	(394)	(338)	55	+14%	(384)	(577)	(193)	(50%)
Income tax expense	(98)	(96)	2	+2%	(77)	(158)	(80)	n.m.
Profit for the period	(296)	(242)	54	+18%	(306)	(419)	(113)	(37%)

€m	Q4-19	Q4-20	Var.	Var. %	FY19	FY20	Var.	Var. %
Segment revenue	187	215	28	+15%	664	737	74	+11%
Intersegment revenue	94	81	(13)	(14%)	375	341	(34)	(9%)
Total revenues	280	296	16	+6%	1,039	1,079	40	+4%
Personnel expenses	8	6	(1)	(19%)	31	25	(6)	(19%)
of which personnel expenses	7	6	(1)	(17%)	31	25	(6)	(19%)
of which early retirement incentives	0	0	(0)	n.m.	0	0	(0)	n.m.
Other operating costs	101	115	14	+14%	322	384	62	+19%
Intersegment costs	103	108	4	+4%	418	385	(32)	(8%)
Total costs	212	229	17	+8%	771	795	24	+3%
EBITDA	68	67	(1)	(2%)	268	284	16	+6%
Depreciation, amortisation and impairments	7	4	(3)	(42%)	27	25	(2)	(6%)
EBIT	61	63	2	+3%	241	259	18	+7%
EBIT MARGIN	22%	21%			23%	24%
Finance income/(costs)	93	2	(91)	n.m.	99	8	(91)	n.m.
Profit/(Loss) before tax	155	66	(89)	(58%)	340	267	(74)	(22%)
Income tax expense	17	17	(0)	(0%)	68	73	4	+6%
Profit for the period	138	49	(89)	(65%)	272	194	(78)	(29%)

€m	Q4-19	Q4-20	Var.	Var. %	FY19	FY20	Var.	Var. %
Segment revenue	1,351	1,349	(2)	(0%)	5,135	4,945	(190)	(4%)
Intersegment revenue	171	186	15	+9%	691	665	(25)	(4%)
Total revenues	1,522	1,535	13	+1%	5,826	5,610	(215)	(4%)
Personnel expenses	11	11	(0)	(3%)	43	40	(3)	(7%)
of which personnel expenses	11	10	(0)	(3%)	42	39	(3)	(7%)
of which early retirement incentives	0	0	(0)	(3%)	2	1	(0)	(27%)
Other operating costs	18	(13)	(32)	(172%)	107	46	(61)	(57%)
Depreciation, amortisation and impairments	0	0	0	+21%	0	0	0	+4%
Intersegment costs	1,245	1,251	6	+0%	4,801	4,658	(142)	(3%)
Total costs	1,274	1,248	(26)	(2%)	4,951	4,745	(207)	(4%)
EBIT	248	287	39	+16%	874	866	(9)	(1%)
EBIT MARGIN	16%	19%			15%	15%
Finance income/(costs)	11	3	(8)	n.m.	6	(9)	(15)	n.m.
Profit/(Loss) before tax	258	289	31	+12%	881	857	(24)	(3%)
Income tax expense	58	49	(9)	(15%)	240	210	(30)	(13%)
Profit for the period	200	240	40	+20%	640	647	7	+1%

€m	Q4-19	Q4-20	Var.	Var. %	FY19	FY20	Var.	Var. %
Segment revenue	450	451	1	+0%	1,669	1,643	(26)	(2%)
Intersegment revenue	0	1	1	+299%	1	1	1	+119%
Total revenues	450	452	1	+0%	1,670	1,644	(25)	(2%)
Personnel expenses	11	8	(3)	(28%)	40	33	(7)	(17%)
of which personnel expenses	11	8	(3)	(28%)	40	32	(8)	(19%)
of which early retirement incentives	0	0	0	n.m.	0	1	1	n.m.
Other operating costs	39	25	(14)	(36%)	102	92	(10)	(10%)
Depreciation, amortisation and impairments	6	1	(5)	(81%)	24	8	(15)	(66%)
Intersegment costs	118	143	26	+22%	499	523	25	+5%
Total costs	174	177	3	+2%	664	656	(8)	(1%)
EBIT	276	274	(2)	(1%)	1,006	988	(18)	(2%)
EBIT MARGIN	61%	61%			60%	60%
Finance income/(costs)	15	14	(1)	(5%)	30	41	12	+39%
Profit/(Loss) before tax	291	289	(2)	(1%)	1,035	1,029	(6)	(1%)
Income tax expense	73	27	(46)	(63%)	298	245	(54)	(18%)
Profit for the period	218	262	44	+20%	737	784	47	+6%

DISCLAIMER

This document 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 document 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 is 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 estimate precisely, including, but not limited to, changes in the legislative and regulatory framework, market developments, price fluctuations and other risks and uncertainties, such as, for instance, risks deriving from the recent Covid-19 pandemic and from the restrictive measures taken by each Country to face it.

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

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