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Business Model The value creation process at Poste Italiane.

Poste Italiane's model is based on a strong integration of physical and remote channels with our app being the most downloaded financial app in 2021.
Specifically, 94% of Italians live within 5 minutes from a Post Office or a PuntoPoste touchpoint.
Fully integrating our channels, allows us to follow customers from engagement to sale through a data-driven service model, supported by tech-intensive processes and customer operations.
This model also contributes to the country’s digitalization and reduces the digital divide.
Through its omnichannel interaction platform, Poste Italiane manages 20 million daily interactions with clients, of which 6.7 million from digital channels.
We live in an increasingly inter-connected world with infinite physical and digital touchpoints, rapidly evolving towards instant and real-time interactions. 
In this context Poste Italiane is ready to become the largest omnichannel platform in Italy providing access to services and products.  

Poste is an important engine of innovation and digitalization of Italy, connecting the country in a new hybrid world. Now, we aim to become the single point of entry for all Italians daily needs.
Poste is the only company able to link Italian SMEs, Public Administration and citizens.
We play a primary role in transforming the e-commerce landscape.
In 2021, 30% of overall B2C deliveries went through our network, with 250 million parcels delivered and almost 520 million e-commerce transactions via our payments tools.
We are also committed to reinforce the relationship between individuals and Public Administrations, with over 22 million public digital identities – SPID – with a national market share of above 80%.
Even in the very competitive telco market, our clients bear with us: in a standard year, our churn-rate is indeed 10%, compared to an industry average of 20%.Poste Italiane’s business activities, in addition to generating direct impacts (i.e. closely linked to the Company’s economic activity), requires the purchase of goods and services produced by other companies (generating indirect impacts) and allows families who have received income thanks to the work done for the Group and its suppliers to purchase new goods and services (generating induced impacts). Poste Italiane also provides an overview of the economic value generated and distributed by the Company to its stakeholders such as suppliers, employees, lenders, the community, public administration and shareholders.

Poste Italiane is the distribution platform of choice in Italy, and we have a track record of successfully expanding our offer and reach. Over time we have progressed from distributing Poste products exclusively through our post office network, to expanding the marketplace for these products via our proprietary digital channel, to selling third party products across our channels and then leveraging on third party networks and diversified partners for distribution.

We have improved our proximity to customers beyond our network via a diversified third-party distribution network, which includes our PuntoPoste points, as well as FIT, Lottomatica, Edenred and ENI locations.

94% of Italians live within 5 minutes distance from a Poste Italiane touchpoint with circa 13,000 post offices open 6 days a week as well as circa 62,000 PuntoPoste points where citizens can undertake all their needs 7 days a week 24 hours a day.
Digitally 62% of customers with at least one access to Poste digital properties in 2021, out of a total customer base of 41 million digital users of digital channels. 
This in turn drives us at Poste to continually innovate in our physical and digital offer and deliver a seamless experience to our customers, wherever and however they interact with us.
Our 35 million customers and their relationship with us is at the heart of everything we do in all segments, at the strategic and operating level.
Poste aims to become the single point of entry for all Italians daily needs. Poste Italiane is in fact the only company able to link Italian SMEs, Public Administration and citizens, through the 18m Poste Italiane’s National Digital ID solution for citizens (leader in Italy).


The company's business model includes a statement about their target market.
With 35 million customers, Poste Italiane has by far the largest client base in the country, 94% of Italians live within 5 minutes from a Post Office or a PuntoPoste touchpoint.
Fully integrating our channels, allows us to follow customers from engagement to sale through a data-driven service model, supported by tech-intensive processes and customer operations.
This model also contributes to the country’s digitalization and reduces the digital divide.
Through its omnichannel interaction platform, Poste Italiane manages 20 million daily interactions with clients, of which 6.7 million from digital channels.
We live in an increasingly inter-connected world with infinite physical and digital touchpoints, rapidly evolving towards instant and real-time interactions.
Italians trust us with their savings, rely on our insurance products, use our cards and phones and, of course, come to us to deliver their mail and parcels.
We have 27 million postal savings clients, and retail net inflows reached a record of more than 15 billion in 2020.
Insurance investment products lapse-rate is only 2.5% versus a market average of 5.5%.
Even in the very competitive telco market, our clients bear with us: in a standard year, our churn-rate is indeed 13%, compared to an industry average of 20%.
In 160 years our Postine and Postini and our Post Offices, have been the main physical connections in the country.
Now, we aim to become the single point of entry for all Italians daily needs.
Along this path, we are the only company able to link Italian SMEs, Public Administration and citizens. We further strengthened our partnership with Microsoft to provide innovative digital services to Italian companies and public administration, supporting and facilitating SMEs growth in Italy.
Our target for savings, financial, fibre-connection, mobile phone, insurance and utilities are Italians.
In this context Poste Italiane is ready to become the largest omnichannel platform in Italy providing access to services and products.


Poste Italiane’s unique business model
Poste Italiane has a widely diversified and unique business model. It is a four-in-one fully integrated platform company and is leader in each of its businesses.

Poste Italiane is not simply a postal and logistics operator, it offers financial, insurance, payments, telephony and soon to be launched energy services across its ubiquitous and wide-reaching 13,000 strong physical post office network and 62,000 B2B2C physical points of sale and integrated with digital and app channels representing a truly omnichannel platform company.

Poste Italiane's model is based on a strong integration of physical and remote channels with our app being the most downloaded financial app in 2021.

Specifically, 94% of Italians live within 5 minutes from a Post Office or a PuntoPoste touchpoint.

Fully integrating our channels, allows us to follow customers from engagement to sale through a data-driven service model, supported by tech-intensive processes and customer operations.

This model also contributes to the country’s digitalization and reduces the digital divide.

Through its omnichannel interaction platform, Poste Italiane manages 20 million daily interactions with clients, of which 6.7 million from digital channels.

We live in an increasingly inter-connected world with infinite physical and digital touchpoints, rapidly evolving towards instant and real-time interactions. 

In this context Poste Italiane is ready to become the largest omnichannel platform in Italy providing access to services and products.

No other operator has the customer base, reach, trust and brand identity of Poste Italiane.


During 2021, through significant investment in the six forms of capital on which the Poste Italiane is based (financial, human, physical-structural, intellectual, social-relational and natural), the Poste Italiane value creation process has generated significant results for the Group with systemic value, consistent with the United Nations Sustainable Development Goals Framework.
 
The diagram illustrates the interaction between the strategy, the value creation process and forms of financial and non-financial capital that characterise Poste Italiane's business model.



THE VALUE CREATION PROCESS IN POSTE ITALIANE
Through its leadership in the logistics, financial, insurance and payment services sectors, Poste Italiane plays a key role in the creation of economic value both for the stakeholders directly impacted by its business activities and for the Country as a whole.

In particular, the activities carried out by Poste Italiane generate impacts on GDP, employment income, employment and contributions to PA. Impacts can be distinguished into:
  • direct impacts: impacts generated by the operating activities carried out directly by Poste Italiane;
  • indirect impacts: impacts generated along the supply chain as a result of Poste Italiane’s spending on goods and services (€ 3.4 billion in 2021, +14% compared to 2020) from Italian suppliers;
  • induced impacts: impacts generated by consumer spending that is realised through the income earned by workers employed directly and indirectly by the Group.

THE PROCESS OF CREATING POSTE ITALIANE'S ECONOMIC VALUE

In 2021, the Poste Italiane Group generated impacts on the country in terms of Gross Domestic Product (GDP) totalling € 12.5 billion, as well as supporting around a total 183 thousand jobs and contributing to Public Administration revenues with around €2 billion in terms of tax revenue. In addition, it is possible to estimate that Poste Italiane has directly and indirectly contributed to
the distribution of income to workers for a total of € 7.3 billion.
The creation of value by Poste Italiane is based on the contribution that the Group’s individuals make through their work and daily commitment. In 2021, each individual at Poste Italiane contributed to the creation of economic impacts for the territory equal to € 105,000 of GDP, € 62,000 of income for households, € 17,000 of tax contributions and the employment of 1.5 people.


Poste Italiane’s commitment to the Country System is not limited to 2021, but is part of an annual value creation process. In the last three years, the Poste Italiane Group generated total impacts on the country for € 37.3 billion of Gross Domestic Product (GDP), € 22.2 billion in employment income and € 6.2 billion in tax revenue. Furthermore, the Group contributed on average to
the creation of 187 thousand jobs in the 2019-2021 three-year period.

MAIL PARCELS AND DISTRIBUTION STRATEGIC BUSINESS UNIT 

“2024 Sustain & Innovate” Strategy
 
MAIL, PARCELS AND DISTRIBUTION  
Logistic player market leader, with the objective 
of growing in the parcels and express courier 
sector
  • Evolution of the logistics network
  • B2C market leadership
  • Growth in C2X and B2B markets
 
“24SI” Objectives and KPIs “24SI” Target 2021 Progress
Nexive integration    
           Operating company for the management of the new 
delivery network with the implementation of cost 
synergy
€ 100 million synergy when fully 
operational
in line
Automating and Streamlining the Logistics Network     
  • Double the volume of automatically sorted parcels. 2x by 2024 vs 2019 in line
  • % distribution centres that operate “lean”    
  • Road-based transportation cost reduction 100% by 2024 in line
  • Increase the parcel delivery productivity -10% by 2024 vs 2019 -6%
  +20% by 2024 vs 2019 in line
Green Delivery    
  • Implement zero emissions delivery in two cities By 2021 Completed
  • Low-emissions vehicle fleet From 4 K in 2019 to 28 K by 2024 10 K
  • Install electric charging points From 1 K in 2019 to 6 K by 2024 ~2 K
  • Implement zero-emissions delivery lines in 35 major city centres and 800 small municipalities By 2024 15 city centres
Business Development    
  Consolidate B2C leadership and grow B2B and C2X using dedicated offers and initiatives aimed at improving the user experience.    
  • Double profits from “Key merchants“ 2x by 2024 vs 2019 In line
  • Cover the population using the Rete Punto Poste From 40% in 2019 to 80% in 2024 ~60%
  • B2C Revenue From € 0.4 billion in 2019 to € 1 billion in 2024 € 0.7 billion
  • C2X Revenue and “B2B revenue + Integrated Logistics” From € 55 million – € 0.3 billion in 2019 to € 76 million – € 0.4 billion in 2024 € 60 million – € 0.4 billion

FINANCIAL SERVICES STRATEGIC BUSINESS UNIT

“2024 Sustain & Innovate” Strategy
 
FINANCIAL SERVICES  
Most trusted financial institution in Italy,
benefiting from an omni-channel approach
  • Promoting diversification of asset allocation
  • Expansion of omni-channel for the Customer
  • Integration of non-life coverage into the investment offering
 
“24SI” Objectives and KPIs “24SI” Target 2021 Progress
Optimise customer wealth management through    
  • The diversification of customer portfolios and further segmentation TFA from € 536 billion in 2019
to € 615 billion in 2024
€ 586 billion
         • The launch of new products to maximise the riskreturn profile    
  • The extension of the investment product range witha focus on ESG Fees per client from € 252 in 2019 
to > € 290 in 2024
€ 249
 

 

For details on the activities of the 2021 business, please refer to the Operating Review found under the “Strategic Business Unit Financial Services” paragraph.

   
Expansion of omni-channel that is focused on the Customer    
  • Evolution of the service model based on people and developed around the different needs of the customer in order to improve profiling and the proposal of offers Consultants from around 8k in 2020 
to around 10k by 2024
7.9 k
  • New consulting methods that complement those offered in person with the evolution of skills for products with a significant customer service component    
  • Digitisation of the customer base through the expansion of channels used to join services BFP issued on digital channels: 
from € 0.9 billion in 2019 to € 4 billion in 2024*
€ 2 billion
 

For details on the service model and developments of the omnichannel area, please refer to the paragraph “Omni-channel, Digital Transformation and main KPIs”

* KPI not presented during Capital Market Day in 
March 2021
 
Significant growth in the volumes of loans and mortgages through:    
  • Partnerships to increase the offer of loans, mortgages 
and salary-backed loans
From € 3.6 billion in volumes in 2019
to € 6 billion in volumes in 2024
€ 3.3 billion
  • Increasing the loan offer on digital channels    

INSURANCE SERVICES STRATEGIC BUSINESS UNIT

“2024 Sustain & Innovate” Strategy
 
INSURANCE SERVICES  
Market-leading insurance company with 
comprehensive and sustainable product portfolio
  • Life products at the heart of the group’s investment offering
  • Profitable growth in the non-life market
  • Full integration of ESG principles and reduction of “underinsurance” in Italy
 
“24SI” Objectives and KPIs “24SI” Target 2021 Progress
Life Segment    
           Meet the growing demand for investment products 
through a mix of sustainable products under the profile 
of capital absorption, profitable and that integrates the 
ESG components.
   
  • Gross Life premiums From € 16.7 billion in 2020 to € 26.5 billion in 2024 € 17.6 billion
  • Average mathematical provisions From € 130 billion in 2020 to > € 170 billion in 2024 € 139 billion
  • % Impact on Multi-class products
  • % ESG products* From 34% in 2020 to >60% in 2024 100% by 2024 58% 50%
 

* Newly released product

 
P&C Segment  
  Profitable growth of the sector driven by the modular 
offer and by motors with the objective of reducing the 
gap of sub-insurance on the Italian market.
   
  • Life/P&C integrated offer (premiums) > € 50 million by 2024 5x by 2024 vs 2020 € 7.6 million
  • Protection gross premiums* € 411 million
 

* Including intermediate volumes on the Third-Party Motor Liability sector

   

PAYMENTS AND MOBILE STRATEGIC BUSINESS UNIT

“2024 Sustain & Innovate” Strategy
 
PAYMENTS AND MOBILE  
Innovative digital platform for an integrated 
payment, telephony and energy offering
• Strengthening leadership in digital payments
• New TLC offer, for both mobile and fixed lines
• Energy services from 2022, leveraging market liberalisation and customer trust
 
“24SI” Objectives and KPIs “24SI” Target 2021 Progress
Electronic money    
           Evolution and digitalisation of the prepaid and debit 
card offer to support the payments business and the 
Group’s green strategy.
   
  • Total transactions with debit and prepaid cards (on- and 
off-us)*
From € 41.9 billion in 2019 to € 83.2 billion 
in 2024
€ 61.1 billion
  • Payment card stock From € 28.7 million in 2019 to € 29.6 million 
in 2024
28.6 million
       – of which PostePay EVO stock From € 7.2 million in 2019 to € 11.6 million 
in 2024
8.4 million
    – of which eco-sustainable card stock 16 million by 2024 1.1 million
  • Digital e-wallets stock From € 5.4 million in 2019 to € 10.7 million in 2024 9.1 million
 

* Transactions relating to payments made with Postamat and 
Postepay on internal and external payment circuits

 
Telecommunications
 
  Reinforcement of the distinct position in the mobile 
market and increase in acquisitions from the digital 
channel. Market expansion through the new Fibra 
offer and migration to a new Mobile Host Operator 
for optimised management of customers voice and 
data traffic
   
  • Fixed and Mobile Lines stock From 4.4 million in 2019 to 5.1 million in 2024 4.7 million
    – of which Fixed Lines stock From 200 K in 2019 to 545 K in 2024* 298K
     

* KPI not presented during Capital Market Day in March 2021.

Energy    
  Entry in the energy market, subordinate to the market 
conditions, through an 100% green offer on the italian 
national electricity and gas market
Launch in 2022 in line