Poste Italiane S p A : Presentazione dei risultati finanziari - Q1 2024

POSTE ITALIANE

Q1-24 FINANCIAL RESULTS

15 MAY 2024

THE CONNECTING PLATFORM

CONTENTS

EXECUTIVE SUMMARY

Insurance

Services

Financial

Services

BUSINESS REVIEW

APPENDIX

Postepay

Services

Mail, Parcel &

Distribution

2

EXECUTIVE SUMMARY

2024 STRONG START ACROSS ALL BUSINESS UNITS

● Q1-24 REVENUES UP 1% Y/Y (+6% EX. APM1) TO €3,045M

• CONTINUED FOCUS ON COST DISCIPLINE MITIGATING INFLATION IMPACT
• EBIT AT €706M (-8% Y/Y, + 14% EX. APM1), NET PROFIT AT €501M (-7% Y/Y, +16% EX APM1)
• POSITIVE NET FLOWS IN ASSET MANAGEMENT AND INSURANCE PRODUCTS, RESILIENT RETAIL DEPOSITS
• SOLID BALANCE SHEET - DIVIDEND BALANCE OF €0.56 P/S (€729M) TO BE PAID ON 26 JUNE 20242

WELL ON TRACK TO MEET CMD 2024 TARGETS

1. Active Portfolio Management impact on Revenues and EBIT equal to €168m in Q1-23 vs €22m in Q1-24;2. Ex dividend date 24 June 2024	3

Q1-24 RESULTS OVERVIEW

STRONG START OF 2024 DRIVEN BY COMMERCIAL PERFORMANCE AND CONTINUED COST DISCIPLINE

• m unless otherwise stated

Q1-23	Q1-24	VAR.	VAR. (%)

REVENUES

3,023

3,045

+22

+0.7%

TOTAL COSTS

2,256

2,340

+83

+3.7%

+168m/+6%

ex APM1

EBIT	767	706	(61)	(8.0%)
NET PROFIT		540	501	(38)	(7.1%)

+85m/+14%

ex APM1

+66m/+16%

ex APM1

Revenues and costs are restated net of commodity price and pass-through charges of the energy business, please refers to slide 38 for a full reconciliation; 1. Active Portfolio Management impact on Revenues and EBIT equal to €168m	4
in Q1-23 vs €22m in Q1-24

SEGMENT REVENUES

TOP LINE GROWTH DRIVEN BY NII, PAYMENTS AND PARCELS

• m unless otherwise stated

MAIL, PARCEL & DISTRIBUTION

	+41
	+5%
893	934
Q1-23	Q1-24

INSURANCE SERVICES

600		+4
500		+1%
393	397
400
300
200
100
0	Q1-23	Q1-24

	FINANCIAL SERVICES
		(79)
	1,414	(6%)
1,500	1,335	+67m/+5%
1,250			ex APM1
1,000
750
500
250
0	Q1-23	Q1-24
Active Portfolio	168	22
Management

POSTEPAY SERVICES

	+56
	+17%
323	379
Q1-23	Q1-24

1. Active Portfolio Management impact on Revenues equal to €168m in Q1-23 vs €22m in Q1-24	5

OPERATING PROFIT BY SEGMENT

UNDERLYING OPERATING RESULTS BENEFITTING FROM A DIVERSIFIED BUSINESS MODEL

• m unless otherwise stated

MAIL, PARCEL & DISTRIBUTION	FINANCIAL SERVICES

		+71m		(58)	(29m) / (13%)
	(47)	ex APM1	256	(23%)	ex APM1
88	(53%)				199
		41
Q1-23		Q1-24	Q1-23		Q1-24

INSURANCE SERVICES

+15

+4%

334349

Q1-23Q1-24

POSTEPAY SERVICES
	+29
	+32%
	117
89
Q1-23	Q1-24	6

1. Active Portfolio Management impact on MP&D equal to €135m in Q1-23 vs €18m in Q1-24, impact on FS €33m in Q1-23 and 4m in Q1-24

CONTENTS

EXECUTIVE SUMMARY

Insurance

Services

Financial

Services

BUSINESS REVIEW

APPENDIX

Postepay

Services

Mail, Parcel &

Distribution

7

MAIL, PARCEL & DISTRIBUTION

PARCEL REVENUES ACCELERATING - MAIL REVENUES AHEAD OF PLAN

€ m unless	SEGMENT REVENUES
otherwise stated

Mail					+41
Parcel & logistics
				+5%
Other1
				934
	893
		31
		39		(20%)
	335	368
	+10%

520 +3% 535

	Q1-23	Q1-24
Distribution	1,382	1,372
Revenues2
		Includes 135 of		Includes 18 of
		active portfolio		active portfolio
		management		management

EBIT

+71m

ex APM3

(47)

88 (53%)

41

Q1-23Q1-24

Q1 HIGHLIGHTS

• Mail revenues up driven by business mix (higher volumes of registered mail) and repricing actions
• Parcel revenues accelerating supported by B2C, +14% excluding impact of COVID logistics mandate gradual phase-out and sennder Italia deconsolidation
• Distribution revenues up 9% excluding impact of active portfolio management, reflecting positive commercial trends and higher network costs
• EBIT trend reflecting higher contribution of active portfolio management revenues in Q1-23

1. Includes Tax Credit contribution, Digital Identities fees, vaccination plan related expense recovery, EGI, Poste, other segments in return for use of the distribution network, Corporate Services and capex costs reimbursement;

Patenti Via Poste, Philately, Poste Motori, Poste Welfare Service, Agile Lab and Sourcesense; 2. Includes income received by	8
3. Active Portfolio Management impact on MP&D EBIT equal to €135m in Q1-23 vs €18m in Q1-24

MAIL, PARCEL & DISTRIBUTION: VOLUMES AND PRICING

STRONG PARCEL VOLUMES GROWTH; MAIL MIX & REPRICING OUTPACING VOLUME DECLINE

€ m unless	PARCEL VOLUMES (M, PC)
otherwise stated
% delivered by	30%	+13	38%
postal network

+21%

71

59

Q1-23Q1-24

MAIL VOLUMES (M, PC)

(57)

(9%)

617560

PARCEL TARIFFS1 (€/PC)

(0.35)

(7%)

5.304.95

Q1-23Q1-24

MAIL TARIFFS (€/PC)

+0.11

+12%

0.840.96

Q1 HIGHLIGHTS

• Parcel volumes continue to grow driven by B2C / e-commerce
• Parcel tariffs impacted by higher volumes with lower pricing and unit costs
• Lower mail volumes due to structural decline in lower- margin unrecorded items while registered mail volumes are stable
• Higher mail tariffs supported by repricing actions and favourable product mix

Q1-23

Q1-24

Q1-23

Q1-24

1. Parcel tariffs adjusted excluding revenues from COVID logistics mandate and sennder Italia (deconsolidated since Q3-23)	9

FINANCIAL SERVICES

REVENUES SUPPORTED BY GROWING NII AND STABLE POSTAL SAVINGS FEES

€ m unless	GROSS REVENUES1
otherwise stated

EBIT& NET PROFIT

Q1 HIGHLIGHTS

Active Portfolio	Net interest	Postal Savings	Transaction	Consumer Loans
Management	income	Banking2	distribution3
Asset	Intersegment
Management	revenues1						+56m/+4%
[o.w. insurance]	(89)
						ex APM4
				(5%)
		1,648	1,559
		234	(4%)
29		[188]	+54%	223
			[173]
44				+41%
					45
	202	62
		(8%)

EBIT

Net profit

	(58)
	(23%)
256	(36)
	(19%)

(29m) / (13%)

ex APM4

(16m) / (10%)

ex APM4

●	Investment portfolio
	revenues supported by NII
	growth with materially lower
	Active Portfolio
	Management (APM)
	compared to Q1-23
● Postal Savings fees broadly
	stable and in line with
	Business Plan
●	Transaction Banking fees
	impacted by current

425

186

+1%430

187 199

151

account re-pricing from

April 2023, mitigated by

other payment services fees

● Confirmed positive trend on

Consumer Loans revenues

driven by growing volumes

and higher upfront fee

margin

546	+8%
		590
168	(87%)
	22
Q1-23		Q1-24

Q1-23Q1-24

● Asset Management fees

benefitting from strong net

inflows

● EBIT (ex APM4) impacted by

higher distribution costs

1. Includes intersegment distribution revenues; 2. Includes revenues from payment slips (bollettino), current accounts related revenues, fees from INPS and money transfer; 3. Includes reported revenues	10
from custody accounts, credit cards and other revenues from third party products distribution; 4. Active Portfolio Management impact on FS Revenues equal to €168m in Q1-23 vs €22m in Q1-24, impact

on FS EBIT €33m in Q1-23 and 4m in Q1-24