Poste Italiane S p A : The Board of Directors approves Full Year 2020 Results, confirming preliminary results published on 17 February 2021

THE BOARD OF DIRECTORS APPROVES FULL YEAR 2020

RESULTS, CONFIRMING PRELIMINARY RESULTS

PUBLISHED ON 17 FEBRUARY 2021

Rome, 24 March 2021 - The Board of Directors of Poste Italiane S.p.A. ("Poste Italiane"), chaired by Maria Bianca Farina, has examined and approved today the Annual Financial Report for 2020, including Poste Italiane's separate financial statement for the year 2020 and the Poste Italiane Group's consolidated financial statement for the year 2020, which confirms the preliminary consolidated results for 2020 previously announced on 17 February 2021.

The Board of Directors also decided to propose the payment of €0.324 per share as balance dividend for the fiscal year 2020 - whose interim dividend, equal to €0.162 per share, was paid on 25 November 2020 - for a total dividend for the fiscal year 2020 equal to €0.486 per share, as a distribution of (i) Poste Italiane's available net income (for a total amount of €272.9m), and (ii) available reserves named "Retained earnings". The proposed ex-dividend date is 21 June 2021, the "record date" (i.e. the date when a shareholder is eligible to receive dividends) is 22 June 2021 and the payment date is 23 June 2021.

Poste Italiane's separate financial statements for the year ended 31 December 2020 will be submitted for approval - together with the proposal for payment of the dividend - to the Annual General Meeting of shareholders scheduled for 28 May 2021. The notice of call will be published in due course.

The Annual Financial Report for 2020 will be made available to the public within the terms laid down by law (i.e., by 30 April 2021) on the following webpage:https://www.posteitaliane.it/en/reports.html

** *

The Poste Italiane Group's consolidated balance sheet, statement of profit/(loss), and statement of cash flows are attached to this release. The corresponding statements for Poste Italiane SpA are also attached. The financial statements and the related notes have been delivered to the Board of Statutory Auditors and will be audited by Poste Italiane's Independent Auditors.

Declaration by the Executive responsible for preparing the corporate accounting documents

The undersigned, Alessandro Del Gobbo, in his capacity as Executive responsible for preparing Poste Italiane's corporate accounting documents (Dirigente Preposto)

DECLARES

that, pursuant to art. 154-BIS, par. 2, of the Consolidated Financial Bill of February 24, 1998, accounting information disclosed in this document corresponds to document results and accounting books and records.

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POSTE ITALIANE GROUP'S FINANCIAL STATEMENTS (€m) CONSOLIDATED BALANCE SHEET

Non-current assets Property, plant and equipment Investment property

Intangible assets Right-of-use assets

Investments accounted for using the equity method Financial assets

Trade receivables Deferred tax assets

Other receivables and assets

Technical provisions attributable to reinsurers Total

Current assets Inventories

Trade receivables Current tax assets

Other receivables and assets Financial assets

Cash and deposits attributable to BancoPosta Cash and cash equivalents

Equity Share capital Reserves Treasury shares Retained earnings

Total

2,134	2,015
31	44
755	648
1,200	1,254
615	617
217,877	194,207
2	5
1,123	1,199
3,868	3,729
54	58
227,659	203,776
165	140
2,373	2,166
187	52
1,060	938
30,006	23,569
6,391	4,303
4,516	2,149
44,698	33,317
272,357	237,093

1,306 1,306

3,909 2,646

(40) (40)

6,327 5,786

Equity attributable to owners of the Parent

11,502 9,698

Equity attributable to non-controlling interests

Total

Non-current liabilities

Technical provisions for insurance business Provisions for risks and charges

Employee termination benefits Financial liabilities

Deferred tax liabilities Other liabilities

Total

Current liabilities

Provisions for risks and charges Trade payables

Current tax liabilities Other liabilities Financial liabilities Total

5

-

11,507 9,698

153,794 140,261

625 501

1,030 1,135

18,366 13,964

1,229 887

1,576 1,525

176,620

158,273

771 1,837

7171,627

13 274

1,745 2,110

79,864 64,394

84,230 69,122

TOTAL EQUITY AND LIABILITIES

272,357

237,093

CONSOLIDATED STATEMENT OF NET PROFIT (LOSS) OF THE YEAR (€m)

Revenue from Mail, Parcels & other Revenue from Payments & Mobile Net revenue from Financial Services

Revenue from Financial Services

Expenses from financial activities

Revenue from Insurance Services after movements in technical provisions and other claims expenses

Insurance premium revenue

Income from insurance activities

Net change in technical provisions for insurance business and other claims expenses

Expenses from insurance activities

Net operating revenue

Cost of goods and services Personnel expenses

Depreciation, amortisation and impairments Capitalised costs and expenses

Other operating costs

Impairment loss/(reversal) on debt instruments, receivables and other assets

Operating profit/(loss)

Finance costs

Finance income

Impairment loss/(reversal of impairment losses) on financial asset Profit/(Loss) on investments accounted for using the equity method

Profit/(Loss) before tax

Income tax expense

3,201 3,492

737 664

4,945 5,134

5,151 5,213

(206) (79)

1,643 1,669

16,865 17,913

4,065 5,478

(18,767) (21,463)

(520) (259)

10,526 10,959

2,523 2,287

5,638 5,896

700 774

(37) (31)

103 200

75 59

1,524 1,774

75 73

123 105

1 46

5 112

1,576 1,872

370 530

NET PROFIT FOR THE PERIOD of which, attributable to owners of the Parent of which, attributable to non-controlling interests

1,206 1,207

(1)

1,342 1,342 -

Earnings per share

0.927 1.032

Diluted earnings per share

0.927 1.032

CONSOLIDATED STATEMENT OF CASH FLOWS (€m)

Note

FY 2020

FY 2019

Cash and cash equivalents at beginning of year Profit/(Loss) before tax

2,149

3,195

Depreciation, amortisation and impairments Goodwill Impairment

Net provisions for risks and charges Use of provisions for risks and charges Provisions for employee termination benefits Employee termination benefits (Gains)/Losses on disposals

1,576

1,872

700 -

774 -

566

394

(388)

(696)

2

1

(120)

(140)

(2) 1

Impairment losses/(reversals) on financial instruments - 46

(Dividends) Dividends received (Finance income realised) (Finance income in form of interest) Interest received

Interest expense and other finance costs Interest paid

Losses and impairment losses/(Reverseals of impairment losses) on receivables Income tax paid

- -- -(1) (7)

(108) (94)

112 95

62 68

(28) (23)

61 62

(823) (252)

Other changes

7 (104)

Cash flow generated by operating activities before movements in working capital Movements in working capital:

[a]

1,616

1,997

(Increase)/decrease in Inventories (Increase)/decrease in Trade receivables (Increase)/decrease in Other receivables and assets Increase/(decrease) in Trade payables Increase/(decrease) in Other liabilities

(26) (4)

(262) (40)

(162) (16)

209 43

(436) (197)

Cash flow generated by /(used in) movements in working capital

[b]

(677)

(214)

Increase/(decrease) in liabilities attributable to financial, payments, cards and acquiring, insurance activities

Net cash generated by/(used for) financial assets attributable to financial, payments, cards and acquiring, insurance activities

(Increase)/decrease in cash and deposits attributable to BancoPosta Increase/(decrease) in net technical provisions for insurance business (Income)/Expenses and other non-cash components

14,469

7,980

(15,961) (10,904)

(2,088) (984)

7,813 7,456

(3,255)

(4,211)

Cash generated by/(used for) financial assets/liabilities attributable to financial, payments, card and acquiring, insurance

[c]

978

(663)

[d]=[a+b+c]

1,917

1,120

Net cash flow from /(for) operating activities Investing activities:

Property, plant and equipment Investment property

Intangible assets Investments

Other financial assets Disposals:

Property, plant and equipment, investment property, intangible assets and assets held for sale

Investments

Other financial assets

(300) (391)

(1) (1)

(379) (342)

(1) (15)

(35) (17)

6 4

- 1

109 29

[e]

(601) (732)

Net cash flow from /(for) investing activities Proceeds from/(Repayments of) long-term borrowings (Increase)/decrease in loans and receivables Increase/(decrease) in short-term borrowings (Purchase)/disposal of own shares Dividends paid

Other transactions with minority shareholders

415 (1,193)

573 -

- (40)

(613) (774)

1

-

Net cash flow from/(for) financing activities and shareholder transactions Net increase/(decrease) in cash

[f] [g]=[d+e+f]

1,051 (1,434)

2,367 (1,046)

Cash and cash equivalents at end of year

Cash and cash equivalents at end of year

Restricted net cash and cash equivalents at the end of year Unrestricted net cash and cash equivalents at end of year

4,516 4,516 (1,705) 2,811

2,149 2,149 (884) 1,265