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Strategy and business model Incorporating sustainability within Poste Italiane’s Strategy.

To be sustainable for Poste Italiane means defining a clear strategy on ESG issues and structurally incorporating them within the strategic objectives set in the “2024 Sustain & Innovate Plan”54. Over the period of the plan, €3.1 billion of investment is envisaged in strategic assets, in order to achieve financial objectives.

Strategic Plan "2024 Sustain & Innovate Plus"

Icona Posta, pacchi e distribuzione The strategic objective of the Mail, Parcels and Distribution segment is to accelerate its transformation from a pure mail operator to a full logistics operator, ensuring the economic and environmental sustainability of its operations. Implementation of the strategy is based on streamlining of the distribution networks, including the integration of Nexive, acquired at the end of 2020, consolidation of leadership in the B2C market and growth in the C2X and B2B segments through the introduction of specific offers and initiatives aimed at improving the customer experience. From this point of view, the Plurima acquisition will reinforce the contract logistics segment. Through the implementation of these strategic directions, the segment aims to achieve operating profit in 2024.

 
FINANCIAL OBJECTIVES OPERATING OBJECTIVES
  • Revenue: €3.9 billion (2019: €3.5 billion), with an increase in revenue from the Parcels segment, and easing of the decline in the Mail segment.
  •  Parcels segment: €2.0 billion (2019: 0.85 billion).
  • EBIT: expected operating breakeven by 2024.
  • Double the volume of automatically sorted parcels.
  • B2C parcels market share: 38% by 2024.
  • C2C market share: 57% by 2024 (2019: 41%).
pagamenti mobile The Payments and Mobile area aims to establish itself as a complete and omni-channel platform for its customers, flanking the traditional business lines of payments and telecommunications with an offer dedicated to Energy from 2022, a market which the company will enter by taking advantage of its liberalisation. The expansion of products, together with the ability to exploit physical and digital channels and third-party networks, will make it possible to fully exploit cross-selling opportunities for customers, thereby increasing value for Poste Italiane as a whole.

 
FINANCIAL OBJECTIVES OPERATING OBJECTIVES
  • Revenue: €1.9 billion (2019: €0.7 billion).
  • EBIT: €0.4 billion (2019: €0.2 billion), with CAGR of 1%.
  • Expected PostePay Evolution portfolio of 11.6 million cards issued.
  • Expected card transactions as CAGR up 14%, to reach €2.7 billion.
servizi finanziari Financial Services aims to further evolve its service model by combining the traditional physical model with the opportunities provided by technological innovation. The priorities of the Strategic Plan include growth in wealth management, thanks to the diversification of customer portfolios to optimise their risk-return profile, the integration of non-life policies within the advisory model and a renewed focus on loans, with particular emphasis on the CQS segment, also thanks to partnerships signed with leading operators in the sector. The business related to the purchase of tax credits on building bonuses represents an opportunity to diversify the investment portfolio.

 
FINANCIAL OBJECTIVES OPERATING OBJECTIVES
  • Revenue: €6.1 billion (2019: €5.8 billion).
  • EBIT: €0.7 billion (2019: €0.9 billion).
  • Common Equity Tier 1 Capital: 17%.
  • Total financial assets: a rise to €615 billion from €569 billion in 2020, with increased penetration of life products.
Icona Servizi assicurativi In Insurance Services, Poste Italiane aims to establish itself as an insurance operator capable of serving all customers' investment and protection needs. Poste Vita aims to confirm its position as leader in the life insurance sector, continuing to offer customers safe products that are both more profitable and more capital efficient. Lastly, the non-life insurance strategy envisages an increase in profitability thanks to the modular offer, supplemented by car insurance, provided to customers without assuming risk thanks to distribution agreements signed with leading Italian insurance companies.

 
FINANCIAL OBJECTIVES OPERATING OBJECTIVES
  • Revenue: €2.7 billion (2019: €1.7 billion).
  • EBIT: €1.3 billion (2019: €0.8 billion). ⦁ Net profit: 5% CAGR in the period 2019-2024.
  • Solvency Ratio: >200%.
  • Gross premium revenue: €26.5 billion (2020: €16.7 billion).
  • Double the average premium of the modular offer.
  • 8,000 post offices enabled to sell car policies by 2024.