Key Financial Highlights

• Group Revenues at €2,522m in 3Q18 (+5.3% y/y); €7,951m in 9M18 (+0.7% vs 9M17) with growth from all business segments and reduced reliance on capital gains
• Total Operating Costs for 3Q18 stable at €2,066m (3Q17: €2,066m); 9M18 at €6,442m, down 4.1% - in line with FY18 targets; expected early retirement charges to be booked in 4Q18
• EBIT increase to €456m in 3Q18 (+8.6% vs 3Q17) and €1.5bn in 9M18 (+(.3% vs 9M17) thanks to positive revenue contributions from all business segments - on track to meet FY18 Deliver 2022 financial targets
• Net profit at €321m in 3Q18 (+P% vs 3Q17) and €1,056m in 9M18 (+E.9% vs 9M17) thanks to improved operating results
• Total Financial Assets of €513bn in September 2018, up €7bn from December 2017 due to €6.8bn positive net inflows demonstrating resilient business model
• Solvency II Ratio at 172% as of September before volatility adjustments, up to about 210% proforma fully loaded including proactive capital management actions
• Group dividend for FY18 up by 5% y/y to €0.44, as committed to in Deliver 2022 supported by EPS at €0.81 in 9M18

Key Operational Highlights – Deliver 2022 generating low risk growth through operational improvement •Mail, Parcel & Distribution: Joint Mail and Parcel Delivery Model, streamlined operational structure and new agreements creating a more effective network

• Payments, Mobile & Digital: creation of Postepay e-money institution and launch of PostePay Connect, the first integrated mobile and digital payments app
• Financial Services: reduced reliance on capital gains, growth in third party distribution driven by new and improved agreements and expanded product range; improvement in postal savings driving significant increase in retail net inflows
• Insurance Services: ongoing diversification of insurance offer with growing P&C and Private Pension Plan product range; increasing focus on innovation in insurance products
• Yesterday the Board of Directors of Poste Italiane S.p.A (or “the Group”) approved 3Q/9M2018 financial results which reflect the positive progression towards Deliver 2022 objectives.

Commenting on the results, Matteo Del Fante, Poste Italiane’s Chief Executive Officer and Managing Director said:

“Poste Italiane continued its growth trajectory in the third quarter and is on track to deliver the 2018 targets set out within Deliver 2022, our five-year strategic plan built on strong fundamentals and evolving customer needs.

“In line with the strategic vision presented at our Capital Markets Day in February, all business segments are contributing to our improved operating performance, driven by low risk growth, reduced reliance on capital gains and greater cost discipline.

“In particular quarterly revenues in Parcels increased driven by strong growth in B2C, while our new Payments, Mobile and Digital segment is delivering visible returns in the fast-growing digital payments space with a newly established electronic money institution and an integrated digital payments app.

“In light of current Italian macroeconomic conditions we are taking capital management actions to strengthen our solvency ratio while our evolving business model is mitigating the impact of BTP spreads which also create opportunities for us, including higher net interest income.

“Deliver 2022 is a five-year journey made up of many small steps on strategy, costs and revenues aimed at driving shareholder value. We are pleased with the early progress and remain focussed on the execution of the plan.”

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Source: Poste Italiane