Poste Italiane S p A : 2024 - 2028 Strategic Plan. The Connecting Platform

POSTE ITALIANE

2024 - 2028 STRATEGIC PLAN THE CONNECTING PLATFORM

2023 PRELIMINARY CONSOLIDATED RESULTS CONFIRMED;

POSTE ITALIANE'S NEW STRATEGIC PLAN - BUILT ON BOTH SUCCESSFUL 'DELIVER22' AND '2024 SUSTAIN & INNOVATE' EXECUTIONS - CONTINUES A SUSTAINABLE AND PROFITABLE GROWTH TRAJECTORY;

ITALY'S STRATEGIC PILLAR, LARGEST PHYGITAL PLATFORM CONNECTING CITIZENS, BUSINESSES AND THE PUBLIC ADMINISTRATION WITH MULTIPLE TOUCHPOINTS: 13,000 POST OFFICES, 51,000 THIRD-PARTY NETWORK POINTS, 12 MILLION DIGITAL PAYMENT WALLETS, MANAGING 6.9 BILLION INTERACTIONS YEARLY;

A LARGE TECH INFRASTRUCTURE POWERING THE PLATFORM COMPANY

FOSTERING OPERATIONAL EFFICIENCY, CUSTOMER EXPERIENCE AND LOYALTY;

A NEW COMMERCIAL SERVICE MODEL TO MAXIMISE VALUE OF CLIENT

RELATIONSHIPS;

LOGISTICS TRANSFORMATION TO ENSURE MAIL & PARCEL BUSINESS

SUSTAINABILITY;

A NEW CUSTOMIZED SUPERAPP SERVING AS THE SINGLE ACCESS POINT TO

THE PLATFORM FOR ALL PRODUCTS AND SERVICES

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A CLEAR COMMITMENT TO DELIVER VALUE CREATION:

2028 REVENUES AT €13.5BN

2028 EBIT AT €3.2BN

2028 NET PROFIT AT €2.3BN

PAYOUT RATIO OF AT LEAST 65%, TARGETING A DIVIDEND PER SHARE OF NOT LESS THAN €1.0 IN 2026 AND AT LEAST€6.5 BILLION CUMULATED OVER THE PLAN

53 NEW ESG TARGETS TO PROGRESS ON OUR SUSTAINABILITY PATH

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 1

STRATEGIC HIGHLIGHTS

New service model and logistics transformation at the core:

• New commercial service model maximizing the value of the platform:

1. Retail client coverage optimized and supported by digital enablers.

1. Transforming the post office from a transactional to a relational space, focused

on building and maintaining strong customer relationships.

• 1. Renewing focus on micro-small business clients.
• Logistics transformation:
• 1. Building a future-proof tech driven network to become a fully-fledged E2E logistics operator, transforming the postal network into an increasingly parcel focused one.

1. Developing a joint venture with a specialized logistic real-estate partner for the

development of the parcel business and new warehouses for contract logistics.

• 1. Leveraging technology to improve customer experience and operational efficiency.
• The SuperApp, incorporating the new payment wallet, will be fully customized to client's individual profiles and thanks to cutting-edge technology and Artificial Intelligence will be a unique access point to Poste Italiane's ecosystem enabling a seamless experience maximising cross and up-selling potential.
• Technological transformation as a backbone for sustainable growth, improving customer experience and loyalty and contributing to value generation thanks to cross- selling and up-selling.
• Conservative and efficient cost discipline, accompanying the transformation strategy.
• Continued investments in training and development, along with diversity and inclusion initiatives, to support people engagement and innovation.
• Supporting Italy's social and economic cohesion and reducing the digital divide with Polis Project. By 2026, about 7,000 post offices in small municipalities will be transformed into digital service hubs, enabling quick and easy access to a variety of Public Administration services. In addition, 250 co-working sites will be made available to citizens.
• Continuing Group's path towards carbon neutrality by 2030, setting new targets to enhance long term visibility.
• New benefit corporation 'Poste Mobility' and a Green Index introduction, further supporting the decarbonization of logistics.
• Target to increase renewable energy production by +40GWh over the period 2020- 2026, through the installation of photovoltaic panels covering a total area of 1.6 million square feet.

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 2

• Decarbonizing investment portfolio, targeting Net Zero by 2050.

FINANCIAL HIGHLIGHTS

• Group Revenue up by c.3%1 (2023-28 CAGR) to €13.5bn in 2028 with positive contributions from all business segments and increasing exposure to growing businesses.
• Operating Profit2 up by c.4% (2023-28 CAGR) to €3.2bn in 2028, with contribution from all business units more than offsetting cost increase.
• Net Profit up by c.4%3 (2023-28 CAGR) to €2.3bn in 2028.
• Customers' Total Financial Assets growing to €624bn in 2028 (2023: €581bn), supported by proactive client portfolio management and revamped Postal Savings products as well as an increased client coverage to 80% of Affluent+ clients.
• Group funded CAPEX 2024-2028 of c. €5.0bn.
• Net financial position in Mail, Parcel & Distribution from -€2.8bn in 2023 to -€0.8bn in 2028, with improving underlying cash generation.
• Enhanced sustainable cash and capital generation driving an ample and diversified dividend upstream from subsidiaries supporting an improved Group dividend policy: from a proposed €0.80 DPS in 2023 to not less than €1.0 DPS from 2026 onwards, increasing from 2023 by 7% per annum with at least 65% pay-out ratio over the plan. Poste Vita remittance ratio up to 100% from 2024, providing additional flexibility. Over 1.5x dividend coverage ratio through the plan horizon, providing additional financial flexibility.

1. 2023 numbers exclude sennder and COVID logistics mandate for the computation of the CAGR.
2. Excluding systemic charges related to insurance guarantee fund, on average c.80m per annum over the plan period.
3. 2023 numbers exclude sennder and one-off bonus for the computation of the CAGR.

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 3

Rome, 20 March 2024: Yesterday, the Board of Directors of Poste Italiane S.p.A ("Poste Italiane"), chaired by Silvia Maria Rovere, approved the Annual Financial Report for 2023, including Poste Italiane's separate financial statement for the year 2023 and the Poste Italiane Group's consolidated financial statement for the year 2023, prepared in compliance with IAS/IFRS, which confirms the preliminary consolidated results for 2023 previously announced on 29 February 2024, and "2024 - 2028 Strategic Plan - The connecting platform", a five-year strategic plan designed to thrive on the strong foundations laid with 'Deliver22' and '2024 Sustain & Innovate'.

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

"Poste Italiane's transformation journey started back in 2017 with a simple ambition: to maximise value for our clients and be the most effective and trusted distribution network in Italy.

We have gone beyond that and established ourselves as the largest phygital platform in Italy, thriving on the integration of multiple touchpoints and creating an omnichannel ecosystem where each portion of the platform complements the other. We have invested in digital, data and our businesses, with our vast client base at the centre.

With this new strategic plan we are reshaping our business to seize substantial growth: with the New Commercial Service Model, designed to optimize the value of our platform and the logistics transformation to evolve into a future-proof network and preserve the financial sustainability of our mail and parcel business.

In Financial Services by evolving our client segmentation allocating them to specialized financial advisors, we will be sure to better cover all our client needs by adapting the network to them rather than asking them to adapt to us.

In Insurance Services our focus is on keeping steady growth in the Life Investment & Pension business and leveraging increasing demand and low customer penetration in the Protection business.

Postepay Services has created an open payment ecosystem with payments at its core, adding home services such as fibre and energy and leveraging on Poste Italiane's omnichannel platform.

The introduction of the SuperApp, with the Digital payment wallet at its core, and the constant evolution of our digital properties will create more value for customers, allowing them to choose the preferred omnichannel experience and increase our profitability.

All of this focuses around the increasing relevance of our digital channels, which is a result of important tech investments made to create the truly omnichannel platform approach we have embraced. The new SuperApp is the tip of our tech evolution iceberg enabling business integration and confirming the role of Poste Italiane as a 'Platform Company'.

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 4

In financial terms, Poste Italiane's revenues will grow to €13.5 billion by 2028 and EBIT will reach €3.2 billion, recording an annual growth rate of around 4%. Similarly, net profit will reach €2.3 billion in 2028.

Thanks to solid and sustainable cash and capital generation, we are upgrading and changing the approach in the dividend policy, committing to a payout ratio of at least 65% over the plan, targeting at least €1.0 DPS in 2026 and at least €6.5 billion cumulated dividends over the plan.

All of this will not be possible without our colleagues, who are the real transformation drivers of the plan, as they have always been in fact. We look forward to continue delivering together sustainable, long-term returns for our shareholders, while meeting the needs of broader stakeholders, with Poste Italiane now being a solid, trusted, and effective strategic pillar for Italy".

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 5

POSTE ITALIANE

2024 - 2028 STRATEGIC PLAN - THE CONNECTING PLATFORM

Wednesday 20 March 2024 - 10:00 CET

To attend click here:Poste Italiane 2024 - 2028 Strategic Plan

For further information:
Poste Italiane S.p.A. Investor Relations	Poste Italiane S.p.A. Media Relations
Tel. [phone]	Tel. [phone]
Mail:[e-mail]	Mail:[e-mail]

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Financial calendar

Next events

• 9 May 2024 - Q1-24 Group Results presentation.
• 31 May 2024 - Annual General Meeting.
• 26 June 2024 - Payment of the balance of the dividend for 2023, with ex-dividend date of 24 June 2024 and record date (i.e. date of dividend payment eligibility) of 25 June 2024.
• 30 July 2024 - Q2 & H1-24 Group Results presentation.
• 7 November 2024 - Q3 & 9M-24 Group Results presentation.
• 20 November 2024 - Payment of the interim dividend for 2024, with ex-dividend date 18 November 2024 and record date of 19 November 2024

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 6

2028 GROUP FINANCIAL TARGETS

€bn	2023	2024		2026		2028	CAGR
(unless otherw ise stated)			23-28
REVENUES1	11.99	12.0		12.7		13.5	+c.3% 2
EBIT3	2.62	2.7		2.9		3.2	+c.4%
NET PROFIT	1.93	1.9		2.0		2.3	+c.4% 4
DIVIDEND PER SHARE (€)	0.80			≥1.0		+c.7%
DIVIDEND PAYOUT	0.54		≥65% over the plan

1. Revenues are restated net of commodity price and pass through charges of the energy business.
2. 2023 numbers exclude sennder and Covid related mandate for a total of 0.2bn for the computation of the CAGR.
3. Excluding systemic charges related to insurance guarantee fund, on average c. 80 m per annum over the plan period.
4. 2023 numbers exclude sennder and one off bonus for the computation of the CAGR

In addition to the standard financial indicators required by IFRS, Poste Italiane discloses alternative performance indicators to provide a better understanding of business performance and financial position. These indicators are described in the annex, in line with the ESMA/2015/1415 Guidelines of 5 October 2015.

The Poste Italiane 2023 Group consolidated balance sheet, consolidated statement of profit/(loss), and consolidated statement of cash flows are attached to this release. The corresponding statements for Poste Italiane S.p.A. 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

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Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 7

MAIL, PARCEL & DISTRIBUTION

2028 Financial Objectives

€bn	2022	2023	2024	2026	2028	CAGR
(unless otherw ise stated)	23-28
SEGMENT REVENUES	3.65	3.75	3.7	3.8	3.9	+1%
MAIL REVENUES	2.07	2.07	2.0	1.8	1.6	(5%)
PARCEL & LOGISTICS	1.40	1.40	1.5	1.7	2.0	+7%
REVENUES
EBITDA		0.8	EBITDA growth	1.4
EBIT	(0.33)	(0.04)	0.0	0.0	0,11	n.m.

1 Of w hich (0.3) transformation D&A and Early Retirements.

• Net Segment Revenues to €3.9bn in 2028 with Parcel and Logistics revenues more than offsetting mail revenue decline driven by e-commerce leadership, international expansion and contract logistics.
• EBIT to €0.1bn supported by Parcel & Logistics growth as well as network transformation, despite €0.3bn non-recurring transformational costs in 2028.

2028 Operational Objectives

• Contract Logistics sector's warehouse capacity to increase from 230,000 SQMs in 2023 to 400,000 SQMs in 2028, following ESG standards.
• Micro-fulfilmentservices for merchants offering 4-hours-delivery options.
• Pick-Up& Drop-Off (PUDO) network4 expanding to approximately 40,000 (from 28,000 in 2023), with a growing number of lockers (2,000 by 2028) thanks to the Joint Venture with DHL.
• PUDO population coverage (access within a 2.5km range) expected to reach over 98% in 2028 (95% in 2023), with 8 million kilometres avoided through its network. Boxless return options extended across the network.
• Waste materials reduction in logistics centres down by 40% by 2028.

4 Including Post Offices.

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 8

The strategic plan aims to deliver a revenue growth of €700 million in new business across two areas (parcels and logistics), supported by technology enablers, sustainability initiatives and real estate development.

A joint venture with a specialized real estate operator will be established to meet the rising demand for revamped logistics space, particularly to support parcel growth and warehouse development.

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FINANCIAL SERVICES

2028 Financial Targets

€bn	2022	2023	2024	2026	2028	CAGR
(unless otherw ise stated)	23-28
GROSS REVENUES	5.76	6.09	6.1	6.5	7.0	+3%
EBIT1	0.89	0.86	0.8	0.8	0.9	0%
TFA	576	581			624	>1%

1 Excluding systemic charges related to insurance guarantee fund, currently estimated at c.20m on average per year over the plan period.

	2022	2023	2024	2026	2028
COVERAGE OF AFFLUENT+	32%	32%	45%	>70%	>80%
CLIENTS
% OF SPECIALIZED FINANCIAL	47%	50%	53%	>70%	>80%
ADVICE ON TARGET CLIENTS

• Gross Revenues5 to €7.0bn in 2028, with a robust 3% growth mostly driven by Savings and Investments benefiting from the new commercial service model.
• EBIT: broadly stable at €0.9bn in 2028.

2028 Operational Objectives

• Total Financial Assets: €624bn (€581bn in 2023) as a result of a strengthened Savings and Investments by better serving clients' financial needs.
• Consumer Loans' volumes: €4.3bn (€3.3bn in 2023), including personal loans' volumes increasing to €3.4bn - thanks to more effective client engagement, also

5 Including intersegment distribution revenues.

Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 9

through a renewed digital experience, and increased approval rate from banking partners - and Salary-Backed Loans' volumes reaching €0.9bn from €0.7bn in 2023

• - driven by product offer evolution and a consolidated market leadership.

• Micro-SmallBusiness: the number of current accounts will reach 400,000 (2023: 278,000), with the average deposit per account amounting to €11,000, up from €8,400 in 2023, thanks to a renewed commercial focus leveraging on the state-of-the-art service platform and a new dedicated service model, including more than 400 new "Punto Poste Business Corners" in major Post Offices with dedicated Advisors and customised approach for top clients.
• Investment Portfolio Revenues: €2.5bn (€2.4bn in 2023), thanks to effective portfolio management leading to higher revenues benefitting from proactive management actions to stabilise yields in the medium/long term, with flexibility to adapt to different market scenarios.

In Financial Services, Poste Italiane will benefit from the supportive macroeconomic and market trends, including banking closure in local communities, addressing financial needs of retail and micro and small business clients leveraging on Post Offices.

The strategic focus is on: 1) strengthening Savings and Investments, attracting new liquidity through digital channels, and re-balancing client investments in order to optimize their risk/reward dynamics; 2) expanding Consumer Loans, by improving approval rates and widening partnerships, and 3) enhancing services for Micro and Small Businesses benefitting from comprehensive product offer and increased points of contact through the retail network and digital platforms.

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Poste Italiane 2024 - 2028 STRATEGIC PLAN - The Connecting Platform - Press Release 10