26/03/2025 - Poste Italiane S.p.A.: Q4 & FY-24 Financial Results

POSTE ITALIANE

Q4 & FY-24 FINANCIAL RESULTS

21 FEBRUARY 2025

THE CONNECTING PLATFORM

EXECUTIVE SUMMARY

THE LARGEST ITALIAN PLATFORM COMPANY

• ● 5% Y/Y REVENUE GROWTH WITH ROBUST COMMERCIAL PERFORMANCE ACROSS THE PLATFORM

• ● COST DISCIPLINE MITIGATING INFLATION IMPACT - EVOLUTION REFLECTING HIGHER BUSINESS VOLUMES

• ● €2.96BN ADJUSTED EBIT1 - c.3X 2017 EBIT AND EXCEEDING LATEST GUIDANCE OF €2.8BN

• ● STRONG NET INFLOWS IN INVESTMENT PRODUCTS AT €5.2BN - IMPROVING INSURANCE NET FLOWS

  DIVIDEND POLICY FURTHER UPGRADED, PAY-OUT STRUCTURALLY INCREASED FROM ≥65% TO 70%, BACKED BY STRONG

  VISIBILITY ON CASH FLOW GENERATION AND CAPITAL OPTIMIZATION

• ● RECORD NET PROFIT AT €2.01BN, PROPOSED FY-24 DPS OF €1.08 (+35% Y/Y), €1.4BN TOTAL 2024 DIVIDEND - BALANCE OF €0.75 P/S

  (€0.97BN TOTAL) TO BE PAID IN JUNE 20252

1. Adjusted excluding systemic charges related to insurance guarantee fund and costs and proceeds of extraordinary nature (€341m charge related to tax credit Voluntary Risk Assessment "VRA"), please refer to slide 38 for a full reconciliation; 2. Ex dividend date 23 June 2025

CONTENTS

Q4 & FY-24 RESULTS OVERVIEW

RECORD ADJUSTED EBIT1 AND NET PROFIT DRIVEN BY TOP-LINE GROWTH AND COST DISCIPLINE

€ m unless otherwise stated

REVENUES

ADJUSTED EBIT1

NET PROFIT

3,186

515

411

HIGHLIGHTS

• ● 5% Y/Y revenue growth with robust commercial performance across the platform

• ● Cost discipline mitigating inflation impact - evolution reflecting higher business volumes

• ● €2.96bn Adjusted EBIT1 - c.3x 2017 EBIT and exceeding latest guidance of €2.8bn

• ● Record Net Profit at €2.01bn, in line with upgraded guidance

• ● EBIT adjustments: ➢ Systemic charges related to the insurance guarantee fund impact 2024 for €74m

➢

Tax credit adjustment: window of opportunity to de-risk balance sheet leading to €341m extraordinary pre-tax charge as result of voluntary risk assessment agreed with Italian Revenue Agency

Revenues and costs are restated net of commodity price and pass-through charges of the energy business; 1. Adjusted excluding systemic charges related to insurance guarantee fund (€74m for 2024) and costs and proceeds of extraordinary nature (€341m charge related to tax credit Voluntary Risk Assessment "VRA"); 2. Post-tax impact of VRA benefiting from recovery of tax deductability on provisions and losses on tax credits also from previous years

2024 ORDINARY DPS c.3X 2016 - €7BN1 CUMULATED DIVIDENDS PAID SINCE 2016

UPGRADED 70% PAYOUT RATIO DIVIDEND POLICY

€ unless otherwise stated

DIVIDEND PER SHARE EVOLUTION

Increase vs initial targets

Initial targets

1.4bn total 2024 dividend, c.9% dividend yield6

Strong visibility on cash flow generation and group capital optimization driving further dividend policy upgrade - payout ratio structurally increased from ≥65% to 70%

Total Shareholder Return since Poste Italiane IPO7

1. Includes final installment of 2024 dividend and additional dividend to be paid, following AGM approval, in June 2025; 2. Initial target of 0.55 published for 24SI (Mar-21); 3. Initial target of 0.59 published for 24SI (Mar-21), first upgrade at 0.63 published for 24SI PLUS (Mar-22); 4. Initial target of 0.62 published for 24SI (Mar-21), first upgrade at 0.68 published for 24SI PLUS (Mar-22), second upgrade at 0.71 published for CMD 2023 (Mar-23); 5. Initial target of 0.92 was implied on Net Profit initial guidance of €1.9bn and 65% payout ratio; 6. Calculated on the average market cap of 2024; 7. Data from 27 October 2015 to 14 February 2025

EXTERNAL REVENUES

RECORD 12-MONTH REVENUES WITH ALL BUSINESS UNITS REPORTING SIGNIFICANT GROWTH

Q4-23

Q4-24

FY-23

FY-24

Q4-23

Q4-24

FY-23

FY-24

Q4-24

FY-23

FY-24

Q4-23

Q4-24

FY-23

FY-24

ADJUSTED EBIT1 BY SEGMENT

2024 PROFITABILITY GROWTH BENEFITING FROM HIGHER REVENUES & EFFECTIVE COST MANAGEMENT

(79)1

(197)

(43)

Q4-23

Q4-24

FY-23

FY-24

Q4-24

FY-23

FY-24

440

Q4-24

FY-23

FY-24

Q4-24

FY-23

FY-24

1. Adjusted excluding systemic charges related to insurance guarantee fund and costs and proceeds of extraordinary nature (€341m charge related to tax credit VRA for Mail, Parcel & Distribution). Please refer to slide 38 for a full reconciliation

CONTENTS

BUSINESS REVIEW APPENDIX

MAIL, PARCEL & DISTRIBUTION

MAIL AND PARCEL REVENUES AND ADJUSTED EBIT ABOVE PLAN1

€ m unless otherwise stated

EXTERNAL REVENUES

Other3

Q4-23

Q4-24

FY-23

FY-24

ADJUSTED EBIT2

Q4 HIGHLIGHTS

●

Double digits parcel revenue growth driven by strong performance across all customer segments

●

Mail revenues supported by favourable business mix and repricing

●

Distribution revenues up 8% reflecting positive commercial trends and higher network remuneration

Q4-23

Q4-24

FY-23

FY-24

●

Solid Adjusted EBIT2 trend reflecting top-line growth and continued cost discipline

1. 2024-2028 Strategic Plan "The Connecting Platform" presented in March 2024; 2. Adjusted excluding costs and proceeds of extraordinary nature (€341m charge related to tax credit VRA). Please refer to slide 38 for a full reconciliation; 3. Includes Digital Identities fees, EGI, Poste, Patenti Via Poste, Philately, Poste Motori, Poste Welfare Service, Agile Lab and Sourcesense; 4. Includes income received by other segments in return for use of the distribution network, Corporate Services and capex costs reimbursement

MAIL, PARCEL & DISTRIBUTION: VOLUMES AND PRICING

PARCEL VOLUME GROWTH CONTINUES INTO PEAK SEASON; FAVOURABLE MAIL MIX & REPRICING

€ m unless otherwise stated

PARCEL VOLUMES (M, PC)

% delivered by postal network

37%

40%

35%

Q4-24

FY-23

MAIL VOLUMES (M, PC)

39%

FY-24

PARCEL AVERAGE TARIFF1 (€/PC)

4.88 4.94 Q4-23 Q4-24

5.14 4.94 FY-23 FY-24

MAIL AVERAGE TARIFF (€/PC)

Q4-24

FY-24

Q4-23

Q4-24

FY-23

FY-24

1. Parcel tariffs adjusted for COVID-19 related contract for PPE logistics and sennder Italia deconsolidation; 2. 2024-2028 Strategic Plan "The Connecting Platform" presented in March 2024

Q4 HIGHLIGHTS

• ● Parcel volumes growth continues driven by e-commerce and market share gains, successfully managing a strong peak season

• ● Parcels delivered by Postini reached 40%, in line with Business Plan2 FY-24 projections

• ● Parcel average tariff up supported by volume growth spread across customer segments

• ● Higher mail average tariff driven by favourable product mix and repricing offsetting volume decline

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Poste Italiane S.p.A. published this content on March 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 26, 2025 at 17:19:44.045.