Poste Italiane S p A : 2024 Sustain & Innovate

POSTE ITALIANE

2024 SUSTAIN & INNOVATE

• Poste Italiane's new strategic plan - 2024 Sustain & Innovate - built on successful Deliver22 execution - continues a sustainable and profitable growth trajectory
• A clear commitment to deliver value creation: €1.6bn net profit in 2024 (+33% vs 2020).
• Visible and competitive dividend policy: DPS +35% over the plan horizon
• Mail, Parcel & Distribution fully-fledged profitable logistics player by 2025 with a higher revenue share from parcel vs mail
• Financial Services model based on People (dedicated training), Products (enhanced product range) and Platform (data-driven customer profiling)
• Insurance Services steady growth trajectory, with Life at the core of Group wealth management and profitable growth in P&C
• Payments & Mobile supporting Group omnichannel platform through the integration of payments, telco and energy
• Poste Italiane to become net zero emissions by 2030

STRATEGIC HIGHLIGHTS

• Plan leveraging on emerging new trends across all businesses
• Achievable financial targets and KPIs thanks to revenue growth and renewed focus on operational performance: revenues up 3% (CAGR 2019-2024)
• Enhanced and sustainable dividend policy based on solid cash generation: DPS +14% in 2021 Y/Y and +6% every year over the plan horizon
• Become the single point of entry for all Italians' daily needs and maximise the value of the powerful omnichannel network
• Shifting from a mail centric operator into a parcel driven business, leader in the B2C segment
• Half of over 11 million daily customer interactions generated from new channels (digital and third-party network), representing 12% of relevant revenues (up to 20% by 2024)
• Cultivating a culture of innovation, with the new Digital Technology and Operations division to accelerate Group digitalisation, upgrading the IT architecture and migrating to Italy's largest proprietary cloud
• A financial services model based on People (dedicated training), Products (enhanced product range, responding to wider customer needs) and Platform (data-driven

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customer profiling)

• Confirming Poste Italiane's support to Italy's digitalisation, connecting the country in the new hybrid world
• Delivering responsible growth, supporting Italy's transition to a sustainable low carbon economy and social integrity through innovation and digitalisation
• Continuing investments in transformation and business innovation as an enabler for future growth.

FINANCIAL HIGHLIGHTS

• Sustainable and competitive dividend policy linked to Group performance: baseline of €0.55 DPS for 2021 (60% pay-out ratio1, +14% vs. 2020), increasing by 6% per annum (2019 - 2024)
• Group Revenue up by 3% CAGR (2019 - 2024) to €12.7bn in 2024 with positive contributions from all business segments
• Operating Profit up by 5% CAGR to €2.2bn (2019 - 2024), driven by operational efficiency
• Net Profit up by 6% CAGR to €1.6bn (2019 - 2024)
• Customers' Total Financial Assets growing to €615bn in 2024 (2020: €569bn), supported by a changing investment product mix
• Capital expenditure: record €3.1bn between 2021 and 2024 supporting transformation, with more than 60% of investments being ESG related
• Steady net financial position in Mail, Parcel & Distribution -€1.9bn in 2020 to -€1.8bn in 2024, with operating cash generation supporting capex & dividend distribution.

1 2021 payout corresponding to 60% of underlying net profit of €1.2bn (excluding the revaluation in SIA's stake of €0.3bn)

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Rome, 19 March 2021: The Board of Directors of Poste Italiane S.p.A ("Poste Italiane") chaired by Maria Bianca Farina, approved on March 18, 2021, '2024 Sustain & Innovate', a four-year strategic plan designed to thrive on the strong foundations laid with Deliver22.

The successful execution of Deliver22 has been built around the Group's historical competitive advantages, anticipating and addressing areas of growth with a proactive and clear strategic view. The Joint Delivery Model was a key enabler for delivering 210 million parcels in 2020, more than doubling 2016 volumes. Record TFA's of €569bn were reached in 2020, with Postal Savings outflows at lowest levels since 2012.

'2024 Sustain and Innovate' will continue to deliver co-ordinated growth opportunities in all our businesses. With execution underpinned by long-term strategic vision, the Group aims to:

• confirm Poste Italiane's role as a strategic pillar for Italy. Poste Italiane continues to play a vital role in Italy's vaccination plan
• deliver responsible growth and drive Italy's sustainability and social integrity, with a strategy structured along 8 pillars and in full alignment with UNSDGs
• drive the accelerated shift towards digital and third party-network channels
• evolve the logistic network throughout the value chain, to capture the full growth potential coming from the growing parcel market. By 2025 over 50% of revenues in the Mail & Parcel segment will come from the parcel business (20% in 2017)
• achieve customer portfolio diversification across savings, insurance and investment products, building on the position as the preferred financial partner, through a state-of-the-art,data-driven technology platform while becoming fully omnichannel
• keep payments as the core and uniquely build on the telco business with the intention of engaging with customers towards more value-added services such as the energy product offer in early 2022

'2024 Sustain & Innovate' has pragmatic and achievable financial targets and clearly defined KPIs, including mid-plan objectives.

Operating profit will further improve from €1.5 billion to €2.2 billion by the end of the plan, supported by revenue growth and cost discipline in all business segments. Targets are built on granular and diverse initiatives, with a low execution risk.

Commenting on the new plan, Matteo Del Fante, Chief Executive Officer and General Manager, said:

"With our '24 Sustain & Innovate' ('24SI') Plan, we are able to build and grow on the solid foundations put in place with Deliver22 with achievable targets across all our four businesses. Revenues will grow steadily throughout the plan, with EBIT and Net Profit increasing 5% and

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6% CAGR respectively, generating €0.4 billion of incremental EBIT between 2019 and 2024. After a step up of 14% in 2021, the dividend per share will benefit from a 6% annual growth. The turnaround in mail and parcels is fully underway and it is the first time parcels will represent a higher revenue proportion than mail, while we will become a fully-fledged logistics player with a sustainable business. In financial and insurance services, the priority is to become the main reference point for all customers' needs, from savings to insurance and loans, attracting them with data driven advisory across all Poste's distribution channels. We will leverage cross and up selling expertise in Payments & Mobile, confirming the leadership in digital payments, introducing broadband connectivity and entering the power and gas market in 2022 with a fair, competitive and customer friendly offering.

Our strategic foresight in creating a cloud-based architecture, leads the Group to be Italy's number one cloud services user. We are delivering new products and services that will help our customers, businesses, the Public Administration and the country as a whole for years to come, with the commitment in creating significant value for all stakeholders.

Confirming the relevance of the environmental topics for our strategy, Poste Italiane will become a net zero emission company by 2030.

Our people have proved to be a cornerstone of our success and we will continue to invest in their skills. We are proud of our key role in the countrywide vaccination plan, with about 2 million vaccine doses already delivered supporting the Italian Army's operations thanks to our cloud native technological platform.

The '24SI' plan transforms challenges into opportunities thanks to the robustness and flexibility of our strategic approach to business. We will confirm with a 'yes' our promise to achieve our 2024 targets.

Poste Italiane is the Italy's most valuable engine of innovation and digitalisation, linking customers, citizens, businesses and the Public Administration physically and digitally."

2024 GROUP FINANCIAL TARGETS

• Group Revenue: €12.7bn (2020: €10.5bn) organic growth with improved quality mix
• Operating Profit: €2.2bn (2020: €1.5bn) improved contributions from all segments
• Net Profit: €1.6bn (2020: €1.2bn) group-wide cost discipline and revenue growth
• Dividend policy: baseline of €0.55 DPS for 2021 (+14% vs. 2020), increasing by 6% per

annum up to 2024.

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MAIL, PARCEL & DISTRIBUTION

2024 Financial Targets

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• Segment Revenues: €3.9bn (2020: €3.2bn) with increased parcel revenues offsetting mail decline
• Parcel Revenues: €1.8bn (2020: €1.16bn) with growth sustained by continued leadership in the B2C market
• Revenue/Employee: to increase from €63,000 in 2020 to €79,000 in 2024

2024 Operational Objectives

• B2C Market share: 38% (2019: 35%)
• C2C Market share: 57% (2019: 41%)
• 100% lean approach roll-out in sorting centres
• Punto Poste population coverage (within a 1 km range): 80% (2019: 40%)

Poste Italiane aims at becoming the logistic operator of choice, ensuring economic and environmental sustainability and the transformation of the business from a mail to parcel- centric operator.

The successful introduction of the Joint Delivery Model will facilitate further efficiency initiatives such as contactless delivery and postini mileage reductions, exploiting the higher coincidence enabled by the Punto Poste network expansion. The integration of Nexive will create relevant cost synergies, mostly collected by 2022. Overall network evolution will increase productivity, supported by the activation of the "World Class Mail and Parcel" lean programme along the whole value chain.

The complete reshape and renewal of the postini fleet, with increasing load-factors matching higher parcels demand, will enable a 40% emissions cut, thanks to the introduction of hybrid and full electric vehicles. By 2021, two Italian cities will be fully served by electric vehicles.

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FINANCIAL SERVICES

2024 Financial Targets

• Gross Revenues: €5.9bn (2020: €5.61bn) stable despite conservative portfolio yield assumptions, leveraging effective distribution capabilities
• EBIT: €0.7bn (2020: €0.87bn) reflecting higher intersegment costs related to the commercial effort required. This is in line with the increased value of our advisory model, including an upgraded role of our financial advisors to meet more complex

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