€ bn unless otherwise stated
|2017||2018||2019||2022||CAGR 17 - 22|
EBIT Margin %
The Mail, Parcels and Distribution Strategic Business Unit will continue to optimise its operational efficiency, including by strengthening the integration of the logistics networks which deliver parcels and mail. In addition, as part of the process of modernising its vehicle fleet, the Group will continue with the introduction of alternative electric delivery vehicles (3-wheeled vehicles). This will improve occupational safety and extend the process, launched in recent years, of adopting eco-friendly forms of transport, involving the introduction of a fleet of 4-wheeled electric vehicles.
The Unit will also continue with the adoption of new automation technologies to support operating processes, with the aim of boosting the efficiency and quality of sorting processes.
The aim of this investment is to maximise synergies in the logistics and operations network and leverage all the Group’s avail- able assets, enabling us to improve our competitive position in the parcels market by taking advantage of the opportunities arising from the growth of e-commerce.
The Payments, Mobile and Digital Strategic Business Unit aims to deliver on the strategic objective of becoming Italy’s leading payments ecosystem, ensuring convergence between payments and mobile technology, and between physical and digital channels. In this regard, the Group intends to lead changes in the habits of consumers, businesses and the Public Administration, creating new integrated products and services.
The promotion of mobile telecommunications services as part of the integrated Postepay Connect offering will continue in 2020. The bundle offering aims to meet the needs of different customer target markets and take advantage of customer loyalty through innovative pricing strategies and by attracting new online customers via a fully digital acquisition process.
In the Payments area, the Postepay card top-up service will be expanded, giving customers the option to make automatic top-ups based on time as well as value.
The year 2020 will also be an important one for debit cards, which it will be possible to manage in the Postepay app to make in-store payments using the Postepay Code. A new debit card will be launched as well, for use with BancoPosta accounts, giving current account holders access to the PostePay ecosystem.
In terms of Acquiring, with respect to the partnership for the remote distribution of Postepay acquiring services in the network of designated Lottomatica tobacconists, in the course of 2020 the physical acquiring service as well as the Postepay Code will begin to be marketed. In addition, it will be possible to make payment slip payments using the Postepay Code in authorised outlets.
Furthermore, in 2020 the partnership with ENI will continue for the provision of a number of services in its network of service stations, with the possibility to accept payment transactions in the traditional manner, through physical POSs, and digitally, through the Paga con Postepay solution, available in the ENI app.
The agreement also covers the management of “cashback”, an innovative service not yet launched in Italy by any operator or financial intermediary, which is basically a trans- action that enables the cardholder to obtain cash from a merchant when making a payment with a debit/prepaid card, through a single payment transaction made at the POS.
The Financial Services SBU will continue with initiatives designed to take advantage of
the opportunities resulting from the recent regulatory changes brought about by MiFID II and IDD, by leveraging the customer base, the distribution network and the brand.
Within the scope of Postal Savings, as set forth in the agreement with CDP, development will continue on the “Postal Savings Relaunch Programme”, with the introduction of new products.
With regard to consumer current accounts, in the first quarter of 2020 the commercial offering will be strengthened with the introduction of the possibility to make online requests to open current accounts.
In the Business and Public Administration current accounts area, to improve relationships with customers, operational and process simplification initiatives will continue in both the opening and management of current accounts.
With regard to the Public Administration segment, 2020 will see the extension of the Treasury service to targets in addition to Municipalities with fewer than 5 thousand inhabitants.
In loan products, promotion and placement activities subject to agreements with partners for property mortgages and per- sonal loans will continue. For the latter, there will be a focus on expanding the product range through the introduction of online solutions.
In keeping with 2019, the offering of the Insurance Services Strategic Business Unit will aim to consolidate the Group’s leadership in the Italian market, supported by a progressive rebalancing of the offering to provide products with greater value added (multiclass), but that have risk-return profiles that are still moderate, in keeping with the type of customer served by the Group.
With respect to Protection services, in 2020 the adoption of the tailor made model will result in a modular integrated offering strategy, superseding an approach focused on individual products, which will consist of personalised, modular protection, assistance and service solutions for individuals, assets and property that can be integrated with each other.
In addition, the Group will be engaged in continuing to achieve growth in the welfare and non-vehicle P&C sectors by exploiting unrealised potential. The investment and protection insurance offer will be enhanced with functions that can be used from digital channels.
The inclusion of ESG (Environmental, Social and Governance) Sustainability criteria is planned in all areas of the investment product offer, both mutual funds and insurance policies, in line with the orientations of the Group.
Lastly, the Group’s technological platforms will continue to evolve towards cloud solutions.
At present it is not possible to make a reasonable estimate of the possible medium-term impacts of the spread in Italy of the COVID-19 coronavirus. However, it is important to note that in its response to this situation Poste Italiane will be able to bring to bear various specific strengths relating to its multi-channel structure and the growth of its digital business, which ensure that service is also available outside traditional post office channels.
The majority of the Group’s overall revenue will not be linked to short-term commercial activities and the business model of BancoPosta is capital light, not assuming credit risk. In addition, its cash flow generation is solid and it continues to hold net cash. The Group is actively involved in daily monitoring of the evolution of the virus, for the proactive management of the relative effects.