Letter to Shareholders

Shareholders,

on behalf of the entire Board of Directors, we are pleased to submit for your approval the Poste Italiane Group’s sixth Integrated Report.

At the General Shareholders’ Meeting held on 8 May 2023, the Board of Directors of Poste Italiane was renewed for the threeyear period 2023-2025. Since taking office, the extremely high level of Group solidity achieved over the years was noted. There is a strong sense of responsibility to steering the Company correctly towards an even more prosperous, and at the same time, sustainable future for all people, customers, suppliers, the Public Administration and citizens, for the community and the country’s economic system.

We are all aware that 2023 was also an extremely challenging year, characterised by converging crises. After the radical changes triggered by the health emergency about four years ago, together with the first obvious effects of climate change, we have witnessed heightened geopolitical instability and an increase in inflation on a global scale, with the continuing Russian- Ukrainian war on Europe’s doorstep, compounded by growing tension in many parts of the Middle East, which has unfortunately culminated in the conflict between Israel and Hamas. The global economic system is faced with geopolitical, climatic, economic and social consequences in an increasingly complex and ever-changing scenario.

Our Company has proved itself capable of continuing on its path of sustainable growth, by sticking to all its business guidelines, in a scenario that has clarified the need to have a strategy capable of innovating regularly, anticipating and guiding changes, which are now happening constantly, in order to guarantee sustainable economic and social value in the long-term. Poste Italiane has had the foresight to identify the new needs of customers and citizens and to evolve to respond to them quickly and efficiently. In response to the natural decline of traditional mail delivery services, due to the changing habits of citizens, the Group has been able to strengthen its presence in the broader delivery and logistics services by offering solutions in line with global players in the sector, thanks to a major internal restructuring, numerous partnerships and acquisitions, especially in the last three years, in the logistics and digital innovation sector. Our undisputed leadership in the payments sector confirms the soundness of the choices we have made over the years, and the offering of new services, for home and all-round family and personal needs, through our extensive network of approximately 13,000 Post Offices that has enabled us to keep the entire infrastructure intact throughout the country.

2023 was also a year of extraordinary results that exceeded market expectations and were in line with the positive trend of recent years, which translated into generated value for all Group stakeholders, the fruits of long-term work. The path we have taken and the goals we have set internally have enabled us to capitalise on multiple opportunities capable of meeting the preferences of you stakeholders and shareholders. The Group has worked with foresight and vision on the digital transformation of assets and internal organisational processes, strengthening its position in the area of logistics and digital payments without hampering, in particular, the objectives of decarbonisation and workplace health and safety and training, and has been able to seize all the potential, anticipating the market context in which the Group operates, understanding that the factors of change are conditions for making a real impact. The Group has forged important international partnerships and completed a number of acquisitions, especially in the last three years, without leaving behind any of the services for which the Company is traditionally recognised by its customers, i.e. postal savings and insurance/financial.

In 2023, the Poste Italiane Group had an impact on the country’s economy, in terms of Gross Domestic Product (GDP), of €13.7 billion and, employed a total of roughly 197 thousand people, contributed around €2.7 billion to the income of the Public Administration in terms of tax revenue. Furthermore, it is estimated that Poste Italiane contributed directly and indirectly to the distribution of income to workers, totalling €7.3 billion. This means that every euro spent by Poste Italiane for the purchase of goods and services generates an economic value for the country system of €3 in terms of production value.

The results we achieved in the year 2023 are incorporated in a general context characterised by steady growth in our commitment to Environmental, Social & Governance issues. Through dozens of projects, the Group has committed significant efforts to all eight pillars of the Sustainable Development Strategy. Briefly, with regard to Integrity and Transparency, the new Fraud Management Centre was inaugurated, which monitors the security of transactions carried out in post offices and online 24 hours a day, and we have almost completed (80%) the Integrated Anti-Fraud Platform (PIAF). In terms of People Development, in 2023 alone, we provided 6.5 million hours of training and strengthened the Welfare platform; with respect to the areas of diversity and inclusion, the LGBTQ+ Inclusion Policy was rolled out in 2023 and formalised in early 2024, augmented by the Active Parenting Policy from 2022. In support of the local area, multiple initiatives have been launched as part of postal, financial and digital education programmes. The Customer Experience is the central focus of Poste Italiane’s priorities. In this regard, Poste Italiane is the first among large Italian companies to achieve UNI ISO 22222 and UNI TS 11348 certifications for the Investment Advisory Service Model of financial advisors engaged in the role of personal financial planner. Poste Italiane has embarked on a digitalisation process that has involved both the Group’s offerings and its business processes, transforming the distribution model to one based on an omnichannel approach; we have launched the first full digital post office. There are approximately 23 million daily interactions and over 6 million daily visitors on digital channels.

In addition, in support of the Green Transition, the Company almost completed the overhaul of the company vehicle fleet (to be completed by 2024) with electric and low-emission vehicles and continued on the virtuous path towards the complete energy efficiency of its buildings. In particular, the first medium/large site was certified carbon neutral. In addition, Poste Italiane customers can make use of both the PuntoPoste network (consisting of more than 15,700 collection points) and the Post Office network for the delivery of parcels, as an alternative to home delivery. As part of Sustainable Finance, Group companies have launched funds that promote environmental and social features.

Having embarked on the path of substantial transformation, which is not yet complete, it is clear, however, that our Company is profoundly different. Poste Italiane is a reliable partner recognised nationally and internationally. Poste Italiane today is a Group that has a mapped out a clear path of strategic development, built on solid foundations. The direction it plans to take has been outlined and specified in the new “2024-2028 Strategic Plan” presented to the market on 20 March 2024.

The new Strategic Plan targets the continuation of the transformation of the logistics sector through the evolution of the model into one based on an omnichannel approach, through a service offer aimed at covering all stages of the customer’s logistics chain. The focus will remain on offering products/services that keep pace with evolving market contexts and confirm the centrality of Postal Savings in the Poste Italiane Group’s offering. In insurance, the Group aims to sustain net inflows in the Life segment and confirms its ambition to reduce under-insurance in the country by offering new products and expanding penetration in the Protection segment, including by placing policies on third-party networks through the integration of Net Insurance, acquired in 2023. In addition, benefiting from the growth of e-commerce and cashless payments, PostePay’s business will evolve towards digital and innovative payment solutions and, at the same time, will be the integration layer on which to pursue the development of the telephony and electricity and gas offerings, to meet customers’ everyday needs within the PostePay ecosystem. The Group will continue to strengthen customer relations within the post office network, third-party networks and on digital properties by making omnichannel experiences easier. During the course of 2023, the first financial functions were released in the Ufficio Postale app, simultaneously renamed as the Poste Italiane app, which will be gradually enriched with all the functionalities of the BancoPosta and PostePay apps, with the aim of eventually replacing them and representing the single access point to the Group’s “phygital” platform. Therefore, the objective of representing Poste Italiane as a platform company evolving towards a diversified, integrated and sustainable business model to offer Italians an increasingly wider range of products/services is confirmed.

The Strategic Plan hinges on the Environmental, Social & Governance (ESG) principles and responds to the challenges of sustainability by setting targets up to 2030, in terms of reducing the emissions of the Group and of the supply chain, augmented by socio-economic elements such as developing people’s skills and enhancing resources to foster change, promoting the values of diversity, equal opportunities and inclusion, and catering for the expectations of all generations, including young workers.

The Poste Italiane Group’s sustainable development strategy is embodied in the ESG Plan, which has been renewed by taking into account the results of the materiality analysis and in synergy with the new “2024-2028 Strategic Plan”, and incorporates specific short-, medium- and long-term objectives, in order to make our path towards sustainable progress transparent and verifiable. The updating of the sustainability strategy was influenced by three main drivers: the definition of the new Business Plan; requests from rating agencies; and regulatory developments. The ESG Plan confirms its subdivision into eight pillars: Integrity and Transparency, People development, Diversity and Inclusion, Creating value for the country, Green transition, Customer experience, Innovation and Sustainable finance, whose objectives are updated annually according to a process of continuous alignment with strategic guidelines, results achieved and best practices, to increasingly integrate sustainability along the entire value chain.

The need to deliver sustainable, long-term benefits to all our stakeholders has never been more important than now, when the Company is called upon to support our economy throughout the country and address the increasingly evident impacts of climate change. At the heart of the strategy is the ambition to achieve carbon neutrality by 2030, in line with the goal of containing global warming to below 1.5 °C. To support this commitment, projects have been outlined in four macro-areas: logistics, real estate, culture of sustainability and sustainable finance, with initiatives concerning both the direct emissions generated by our facilities – a further 10 properties will be made carbon neutral by 2028 – and the indirect emissions produced upstream and downstream by our suppliers and customers. In fact, the “Green Index”, a carbon footprint calculation model for each stage of the entire supply chain, will be issued and certified according to the best industry standards. In addition, we have set the goal of being within a maximum of 2.5 km from the customer throughout the country by 2028, thanks to the PuntoPoste network, with obvious savings in air emissions.

With regard to environmental sustainability, COP 28, held in December 2023 in Dubai, resonated greatly which recognised for the first time the need for a transition away from fossil fuels. On this occasion, the EU and its Member States pledged more than half of the initial funding for the previously established loss and damage fund. Overall, the EU and its member countries are the world’s largest provider of climate finance. In addition, according to the 2023 World Economic Forum’s Global Risk Report, weather-related events and disasters attributable to the effects of climate change are having a major social and economic impact. The Report highlights how climate change adaptation initiatives and projects must be up to the task of coping with the intensity and speed of the ongoing transformation and the global risks they are generating. On the social and economic level, pressures on the cost of living reduce expectations and prospects because of major worries about inflation that are hard to quell, further increasing the sense of difficulty in dealing with even everyday issues. With this “emotional climate” comes what, in 2024, is considered the most significant risk for the next two years, namely that of misinformation. A risk that in an increasingly interconnected environment like the one we live in can amplify real risks or an inability to manage them properly. Top of the agenda are not only risks related to extreme weather events, greater intensity and the worsening of social and demographic polarisation, but the growing difficulty in governing the pace of technological progress, particularly with regard to cyber risks.

Poste Italiane aims to support the sustainable development of the country and to be a guide for responsible growth and digital evolution through the definition and achievement of financial, operational and sustainability objectives - understood in its broadest sense. Thanks to numerous initiatives and projects in line with an integrated vision, we can say that the Group is solid and sustainable, capable of providing the most innovative answers to seize the best opportunities even in a highly challenging and changing environment.

The Poste Italiane Group plays a central role in the country’s economy. With a turnover of around €12 billion (up compared to 2022) and the highest number of employees among Italian companies, it is confirmed in 2023 as the leading employer and the largest company in the logistics sector in Italy, with a leading position also in the financial, insurance and payment services sectors. The Group’s recent entry into the energy sector further strengthens our presence in the region and our ability to meet citizens’ needs even during a crisis. In particular, the “Poste Energia” offer stands out for its focus on environmental sustainability, promoting responsible consumption practices and offering electricity from 100% renewable sources produced in Italy, with carbon dioxide emissions from gas released for consumption fully offset. The Group’s commitment to digital transformation continues with its support for citizens, businesses and the Public Administration in the process of digitising the country. Poste Italiane confirms its role as a strategic pillar by effectively and efficiently connecting the country.

The “Polis Project, Houses for Digital Citizenship Services”, launched in 2022, is a practical example of how it is possible to promote the economic, social and territorial cohesion of the country and to overcome the digital divide in small towns and inland areas. Around 7,000 municipalities with a population of less than 15,000 inhabitants become home to the digital services of the Public Administration. The ambitious project envisages total investments of around €1.2 billion to be implemented by 31 December 2026 and the allocation by the Ministry of Enterprise and Made in Italy of total contribution of €800 million. In more than one thousand post offices in municipalities with less than 15,000 inhabitants, work has been completed to ensure that citizens can access the main services of the Public Administration, INPS services, and civil registration and judicial certificates. Finally, work was completed on 31 co-working spaces.

Goals such as these are certainly the result of the effectiveness of the path taken towards the creation of shared value, with a view to achieving the Sustainable Development Goals (SDGs) as defined by the United Nations. The business model adopted by Poste Italiane is constantly evolving and adapting to the needs dictated by the economic and social context and the demands of the company’s stakeholders, while maintaining its values and principles. The relationship with all stakeholders is increasingly central, and fostering dialogue with them allows us to maintain a solid relationship of trust, based on shared values such as transparency and inclusion, which are at the heart of our growth path towards a sustainable future. This means we can count on the support we need to successfully manage the risks and opportunities that arise and achieve long-term sustainability.

Poste has always been keen to promote initiatives aimed at listening to all of the Group’s stakeholders. A long-established formula, the Multistakeholder Forum, now in its seventh edition, represents a crucial opportunity for discussing and fully sharing the key objectives of the Group’s Sustainability Strategy, based on eight pillars. Also in 2023, the event was attended by around 1,400 people, together with whom we assessed the significance of the sustainability impacts related to our business and defined the material issues for Poste Italiane, in line with the regulatory developments of the GRI and CSRD standards. The priority issues for stakeholders and the Company so defined are analysed according to the dual materiality approach, which aims to identify the material issues that enable us to prioritise action aimed at creating value in the short, medium and long term. In line with the strategy outlined in the new Strategic Plan to support the customer and the community, the results of the engagement process with the Group’s main stakeholders showed an increased relevance of impacts related to the following issues: Innovation and digitisation of products, services and processes, Protection of human rights in the Company, Support for the socio-economic development of the territory and Equal opportunities in career paths from an inside-out perspective; Innovation and digitisation of products, services and processes, Quality and Customer experience, Staff training and development and Financial inclusion based on an outside-in approach.

The Poste Italiane Group’s business model confirmed its solidity in 2023 as well, despite a particularly complex and challenging scenario. The actions and results achieved, reported in the Integrated Report, describe the Group’s concrete commitment and have been consistent with the process undertaken by the Company to generate valuable relationships with all its stakeholders.

As we continue our organic path of growth, which combines innovation and human capital development in an inseparable pairing, our sense of responsibility is embodied by actions and initiatives to protect the community and the environment in which the Group operates. In keeping with these values, we constantly maintain a focus on human advancement, through a social commitment aimed at realising practical projects. In particular, in line with one of the material themes identified, we have invested heavily in the training of our people, focusing on the development of the skills also required by new businesses, health and safety in the workplace and respect for human rights, essential tools for a competitive advantage in the market. But the strategy will be further developed, expanding the initiatives, including the creation of five campuses dedicated entirely to the training of our people.

Our stakeholders have already been able to appreciate and benefit from the value created starting with “Deliver 2022” and continued with “Sustain&InnovatePlus 2024”, presented to the market in 2018 and 2022 respectively, thanks to which it has been possible to structure the new “2024-2028 Strategic Plan” with a solid foundation, that is increasingly sustainable and accessible to all our citizens. Thanks to our commitment to guaranteeing access to our services throughout the country, combining proximity and digital innovation, our distinctive identity, we are committed to reducing emissions, to promoting new business models to accelerate our customers’ green transition, to respecting human rights at all stages of our activities, and to the human and professional growth of our people based on valuing everyone’s contribution, inclusion, motivation and respect.

Furthermore, the Group dedicates itself on a daily basis to the promotion of organic and widespread social inclusion initiatives, with the aim of creating a positive impact in the context in which it operates. In particular, corporate volunteering represents an ethical choice of the Company and a concrete commitment for the community sustainable development, in line with the values and principles incorporated in the Code of Ethics and the Sustainability Policies. We have set ourselves the goal of doing more and more in this context.

This awareness drives us to introduce increasingly more effective actions because we feel a responsibility to make a real difference.

Through a growing commitment to greater transparency to the market and to the solidity and concreteness of the business model built to create sustainable value in the long term, also in 2023, the Group confirmed or improved its ratings of excellence in the main ESG ratings used by the main market players. In December 2023, Poste Italiane was ranked as the world’s “Sector Leader” for sustainability in the insurance sector according to the S&P Global rating agency, subsequently being included in the 2024 edition of the S&P Global Sustainability Yearbook, falling within the Top 1% of the S&P Global ESG Score 2023, and confirming its presence for the fifth time in a row in the Dow Jones Sustainability Index World and the more selective Dow Jones Sustainability Index Europe. In addition, the Group was not only reconfirmed as a leader in the fight against climate change by CDP (formerly the Carbon Disclosure Project), placed for the third consecutive year in the “Leadership” bracket of the international rankings with an A- rating, but was also ranked by Sustainalytics as a top ESG performer from a panel of more than 15,000 companies assessed globally, maintaining a Low ESG Risk Rating. These prestigious recognitions are followed by further confirmations in equally important indices, such as the Bloomberg Gender-Equality Index (GEI), Integrated Governance Index (IGI), FTSE4GOOD, Euronext MIB ESG and Equileap Global Gender Equality in addition to several other indices of the Euronext Group. In addition, the Group also maintained its “AA” rating from MSCI, owing to the major progress it has made in the social sphere, improving its corporate sustainability performance and leadership in the sector.

The Group achieved numerous recognitions in 2023, which the whole Company is extremely proud of because they are the result of the work put in by all Poste Italiane’s people. For the sake of brevity, we’ll mention just a few.

Poste Italiane has been awarded the prestigious Platinum medal by EcoVadis, which assesses the sustainability of companies along the supply chain, further improving its position from last year’s Gold medal by placing within the top 1% of companies assessed by the team of international experts. The Group is committed on a daily basis to finding innovative and sustainable solutions for our Italian and international partners, in line with our corporate objectives, and will continue to work to be an increasingly representative point of reference for the country in the ESG domain. Finally, Poste Italiane obtained the UNI/PdR 125:2022 certification (a certificate provided for in the National Recovery and Resilience Plan - NRRP), due to its ability to ensure gender equality in the workplace. Inclusive organisation and respect for gender equality create shared social value and foster a higher level of engagement with corporate objectives, generating a competitive advantage for the entire Group. The certification obtained actually represents another feather in the Company’s cap, augmenting the other important recognitions already achieved by Poste Italiane in the area of inclusiveness, such as the Equal Salary certification, the Uni ISO 30415:2021 – Human resource management – Diversity and Inclusion certification, in addition to the Top Employers certification confirmed for the fifth consecutive year.

We are fully satisfied with the results we have achieved; the high level of professionalism, determination and ambition which are our hallmark, has helped us take important steps along the path of development. We will strive to ensure that our Company continues to be a reference point in the community in which we operate because trust and reputation are fundamental values on which to base a solid future for the benefit of all stakeholders.

A heartfelt thank you, therefore, goes to all the people of the Poste Italiane Group for their constant support in pursuing all the common goals dynamically and with bundles of energy.

Finally, we thank you Shareholders in advance for the attention given to this document, which is inspired by the principle of maximum transparency towards all our stakeholders.