Poste Italiane Spa

Good morning, everyone, and thank you for joining us today. Over the next hour, we'll be presenting our full year 2025 preliminary results, as well as our 2026 strategy update. As you can see from the agenda on the screen, our CEO, Matteo Delfante, will kick off with an overview of the main achievements to date, our strategic priorities, and key financial targets for 2026. Then our CFO, Camillo Greco, will take the floor to deep dive into the financials. after some closing remarks from our ceo we will open the q a session for any topics we won't be able to cover today please do reach out to the investigations team and we'll be happy to follow up with that i think we can start and matteo over to you good morning everyone and a very warm welcome to post italiana 2025 preliminary results and 2026 strategy update today

We will be running through our record 2025 results, our 26 guidance and remuneration policy, as well as our strategic priorities going forward. 2025 has been an exceptional year for Poste Italiane. We deliver the strongest results in our history with record revenues and profitability, sustained by a solid commercial performance, strong returns from our investment portfolio and continued cost discipline across the group. The strategic plan continues to make excellent progress with all key initiatives fully on track, including the deployment of the new commercial service model and the logistics transformation. We have further strengthened our digital engagement and omnichannel strategy with the successful migration to the Super App, which is now the number one Italian app with over 4 million daily active users. During the year, we consolidated our position as the largest long-term shareholders, reaching a 27% stake of ordinary shares and launched several work streams to generate industrial synergies within. We are proposing a full-year dividend per share of €1.25, up 16% year-on-year, for a total distribution of €1.6 billion, corresponding to a payout ratio of 73%. The balance of €0.85 per share, equivalent to €1.1 billion, will be paid in June 26. These achievements confirm the strength of our platform business model and we continue to execute our long-term strategic roadmap. The new 26 guidance points to an EBIT higher than 3.3 billion and a net profit of 2.3 billion excluding the contribution from the team stake. which instead will be fully additive to our shareholder remuneration policy on a cash for cash basis, as you will see later in the presentation. Our new multi-year strategic plan with updated guidance and targets beyond 2026 will be released later on this year. Let's move to slide seven, please. We pride ourselves in being Italy's largest digital platform, connecting the country through our extensive network of almost 13,000 post offices and 49,000 third-party touchpoints. Overall, we manage 27 million digital daily interactions with our 46 million clients. 19 million of which are digitally enabled. We are Italy Connective Tissue, a platform built on trust, scale and nationwide proximity, committed to generating value for all stakeholders and delivering consistent financial returns to our shareholders. Let's move to slide 8, please. In 2025, revenues reached 13.12 billion and adjusted EBIT rose to 3.24 billion, underscoring the strength of our strategy and flawless execution. Net profit of 2.22 billion comes in at the high end of the updated guidance we released in July. Shareholder remuneration growth is fully aligned with profitability. With the proposed €1.25 per share for 2025, our dividend has increased at an average annual rate of 15% consistently since 2017. Moving to slide 9. With the obvious or sole exception of the COVID year, we have a proven track record of consistently outperforming our initial EBIT guidance. This highlights the strength of our diversified business model and the consistency of our execution. Let's move to slide 10 on shareholder remuneration. Since 2016, we have returned 9 billion euros to our shareholders. Over the same period, our market capitalization increased over 3.5 times, from approximately 8 billion at the end of 2016 to around 30 billion today. This means that our total shareholder return has materially outperformed the Italian market index by 2.5 times. With a record net profit of 2.22 billion, dividends for 2025 will amount to 1.6 billion or 1.25 euro per share. This represents a remarkable 21% average annual growth since 2020. Moving to slide 11. In 2025, we further strengthen our platform by delivering across all our strategic priorities. We completed the migration to the super app, the single AI power access point to our entire ecosystem. We acquired a 27% stake of ordinary shares in TEAM and we're working together on initiative design to unlock tangible industrial synergies. Finally, we expanded our role in Italy's digital transformation with the acquisition of a 49% stake in Pago.pa. We consolidated our position as the number one parcel operator in Italy with record net revenues. In financial services, we reached record investment portfolio revenues at 2.7 billion, while in insurance services, we posted a solid growth in protection with gross return premium up 21% year-on-year to 1.2 billion euro. Finally, we have reached a milestone of 1 million energy contracts and launched Team Energia powered by Poste Italiane with very promising early commercial results, reinforcing our confidence in the strong growth opportunities ahead of us. Let's move to slide 12, please. Let's now look at some KPIs demonstrating the strength of our digital platform, which is the largest in Italy today. In recent years, we have made substantial investments in our digital platform, expanding our footprint and strengthening customer loyalty across all business lines. This platform is at the core of our strategy and remains a key enabler of sustainable growth. We continue to scale our digital infrastructure. Since 2017, we have deployed €6.7 billion in technology, with more than 70% dedicated to transformational projects. We have also strengthened our capabilities with 2,500 IT specialists, enabling us to accelerate time to market and support the evolution of our business. At the same time, we have moved decisively towards a multi-cloud architecture with around 200 million in cloud consumption in 2025 alone and approximately 90% of initiatives being cloud native. This infrastructure gives us flexibility, resilience and scalability while reducing cost over time. Our platform is increasingly AI and data driven. with more than 4 billion transactions analyzed in 2025, improving customer insights, operational efficiency, and product personalization. Our goal is to fully unlock the Platinum Effect by starting with a simple premise. A satisfied digital client is proposed a lifelong client. Moreover, hybrid clients seamlessly using our digital and physical channels show a cross-selling ratio roughly 2.5 times higher than single channel users. And bear in mind that each additional cross-selling point generates a 3-fold increase in revenues per client. Moving to slide 13. Our super app. is the core of our omnichannel strategy. We have successfully completed the migration from our legacy apps to a single unified platform that now serves 16 million users. It has already become the number one Italian app with 4.2 million daily active users, more than the combined total value of all our previous apps together. The Super App is designed as an AI-driven gateway that strengthens our omnichannel capabilities, boosting digital sales while also increasing post office sales initiated through digital engagement, a dynamic we like to refer to as drive to the post office effect. In fact, in 2025, 44% of our total sales involve a digital contribution. 26% were completed through direct digital channels and 19% through the drive to post office effect. Overall, this represents a 19% increase year on year. The clearest success story is in postal savings, where digitally induced inflows accounted for 45% of the total, with a 29% year-on-year increase. In 2025, hybrid or omnichannel buyers generated 35% more sales per customer than offline buyers and grew 18% compared to 2024, a clear sign of moving in the right direction. This is only the beginning of our journey as the super app is still far from reaching its full potential. Let's move to slide 14. Sustainability continues to be a key strategic enabler of our long-term value creation. With the POLIS project, we're supporting greater social and territorial cohesion while strengthening our local presence. The project is fully on track, providing public administration services through more than 4,800 offices already transformed. We have the largest eco-friendly fleet in Italy and continue to invest in energy transition projects with the goal of improving network efficiency and reducing environmental impact while generating cost savings. We are proud to have earned and maintain a solid ESG reputation as underscored by our inclusion in leading ESG indices and ratings. Let's move to slide 15 for a closer look at our people strategy. Our people, as we always say, are the most important asset of the firm. And I would like to thank them for their continued hard work and dedication and commitment to post-Italian and long-term success. Our workforce has consistently evolved since 2017. And eight years, almost nine down the road, our people, on average, are three years younger. And this is clearly a clear sign of the transformation we enable. And we also have today a much higher level of education, as you can see. Women are a driving force within the organization, representing 53%, more than 50% of the population, and holding 46% of middle and senior management positions. HR cost per FTE is up double digit since 2017 and we grow more for the agreements that we have with the stakeholders, underscoring our commitment to reward our people for their exceptional contributions. As the AIR accelerates, investment in training and reskilling has become essential. Our insourcing program has enabled us to reskill 2,000 employees in the past five years, delivering around 40 million in run rate cost savings while preserving employment levels. Finally, let me highlight that Poste Italiane has been certified as a top employer for the seventh consecutive year. and an award that recognizes excellence in HR policies focusing on employee well-being, inclusion, training and development. Let's move now to our key strategic priorities from line 17. These are the initiatives that will be at the center of our new multi-year plan that will be released before year-end. AI will be a key growth accelerator of our strategic plan, helping us serve customers better, grow revenues, and reduce costs in a sustainable way. AI powers the personalization of our super app, boosting digital sales and generating drive-to-post office effect, and at the same time is able to provide smart sales recommendations to our financial advisors in post offices. It is also reshaping our logistic network. Predictive models now support planning, warehouse management and routing of our over 1 million parcels every single day. This means fewer kilometers driven, faster deliveries, lower operating costs and a tangible reduction in CO2 emissions. In customer services, the implementation of AI tools has brought our cost to serve down by 30% compared to 2020. And we expect to see around 30 million additional savings on a run rate basis over the next four years. In IT alone, the use of AI for requirements gathering and new product development will massively reduce time to delivery of new products and solutions. Thanks to AI, we will optimize external professional services and maintenance, generating one million recurring cost savings over the next four years. And importantly, AI is also empowering our people. Tools such as Copilot are helping teams to work faster and smarter. Thanks to higher employee productivity, we have reduced 2026 corporate center new hirings by 15% compared to the average of the past four years. To make AI truly scalable across our digital operations, we must create a digital brain for the entire organization by digitalizing all corporate knowledge and implementing an agentic AI framework supported by our robust and efficient hybrid cloud infrastructure. In summary, AI is a rating poste italiane. Unlocking the new revenue opportunity, enabling smarter and more efficient operations, empowering the next chapter of our growth. Let's move to slide 18. Let me give you a brief progress update on our strategic initiatives routine. We have now launched around 10 work streams designed to unlock synergies. With these projects, our working process and we will take time to mature, the direction is very clear. The foundations are solid and early results are encouraging. In the meantime, our initial 1.3 billion cash investment has more than doubled in value. It is a powerful sign of market confidence in team transformation and the new long-term industrial rationale. Let me briefly walk you through some of the key initiatives already underway. The immigration of Poste Italiane to team mobile infrastructure is undergoing and will generate around 25 million annual rate cost saving for Poste. Team Energia, powered by Poste Italiane, has seen a strong initial customer response. We have also launched our consumer and SME protection insurance products across team retail stores and online with encouraging early traction. In parallel, we are progressing towards the insourcing of selected team services, a move that could generate up to 100 million additional revenues for Poste Italiane, while also advancing several work streams on joint procurement and cost savings opportunities. Through the JV within enterprise, we aim to create a national champion with best-in-class capability across cloud, sovereign cloud, AI, open source, IoT, and cybersecurity. In parallel, we're also in discussion to acquire a 20% stake in Polo Strategico Nazionale, where the team already owns 45%. Polo Strategico Nazionale or PSN is a national strategic asset whose key mission is to create an innovative, secure and sustainable cloud infrastructure for all Italian public administrations, central and local. This is without question a multi-year journey. Benefits will materialize progressively as projects reach maturity and the execution steps are completed. We are building a partnership designed not for quick wins, but for durable, long-term and sustainable value creation for the two groups. Let's move to slide 19. We take always pride in operating the largest network in the country, serving one million customers every day in communities all over Italy, a number that has remained stable even as our digital channels continue to grow. Today, thanks to recent legislative and regulatory development, our post offices are finally being recognized as a fully-fledged market network. The 2026 budget law has extended the Universal Service Obligation to 2036, allowing us to leverage on third-party networks to provide the service, freeing our post offices to focus on higher value services. As a result, Of the 2024 amendments to the 1990 antitrust law, we have no residual obligation to grant access to our network to competitors' products. Finally, relevant Italian and EU authorities have confirmed that our US loan compensation is not linked to post office and network costs. The implementation of the new commercial service model is progressing as planned. This transformation is strengthening the way we serve our clients by improving the quality of our coverage and deepening the relationship we build with them every day. For our premium and affluent segments, we reached 69% specialized coverage today and we're heading towards our 80% target in 2027, one year ahead of plan. A key enabler of this transformation will be the post office network and reconfiguration towards a more efficient hub and spoke model expected to be in place in 2027. This change will deliver better network governance, stronger engagement from small and medium offices and more options for our clients. Poste is a unique network, by far the largest in Italy, able to provide the broadest distribution and service capabilities. Let's move to slide 20, please. Let me now discuss briefly what will be a key pillar of our new multi-year plan we will announce by year end. We have launched a small group reorganization process to create a new financial hub, a strategic step that will further strengthen our client-centric approach and platform effect. We are bringing together our payment businesses with our broader financial services activities to unlock cross-selling opportunities, harnessing growth and potential of post-pay clients. Over the past decade, the number of post-EPA cards has grown at an impressive 7% compound annual rate, with Ivanbeck post-EPA evolution cards reaching 11 million at the end of last year. This reorganization will be a key step towards maximizing and extracting the value of our client base, enhancing cross-selling by better addressing our clients' everyday and long-term needs. The new setup will ensure stronger network engagement on our key strategic priorities and significantly improve time to market. Capital optimization will generate additional revenues for the group already in the short term. This integration is also a driver of efficiency. By streamlining group functions and capturing scale and scope advantages, we expect to deliver co-synergies effectively redeploying 25% of current PostePay and Banco Poste merging employees to support anticipated growth of the overall group. Reorganization is expected to be completed by the beginning of 2027, subject to regulatory approval from Bank of Italy. More to come on this with our new plan, please stay tuned. Let's move to slide 22. Let's briefly look at the key drivers of our 2026 plan. guidance by business unit, starting from mail and parcel. In mail, we will continue to use repricing to mitigate volume decline. Going forward, the new USO service will enable efficiencies thanks to more relaxed level of service requirements, such as the elimination of the J plus 1 deliveries. Through our participation in Pago.pa, we will ensure a seamless integration of physical and digital public administration notifications. Moving to Parcel, we will reinforce our leadership leveraging our unique assets, such as the unmatched PUDO network and long-standing customer relationships. The internal courier network will be 80% completed in 2026, generating efficiencies and operating leverage through parcel insourcing expected to reach 50%. Let's move to financial services on slide 23. In financial services, the focus will be on increasing net inflows of customer assets and cross-selling. From a product perspective, we will continue to introduce new solutions to attract additional liquidity across savings and investment products and add a market-leading player as a new partner for salary-backed loans. Our financial advisors will be empowered by AI-driven front-end tools that provide smart sales suggestions, guiding them towards the next best action for each client. They will also leverage a super-powerful drive-to-post-office effect to enhance client engagement and conversion. Moving to slide 24 and turning to insurance, we're seeing a positive and supportive environment in the life segment with steady growth of client assets. Net inflows are recovering across the sector and improved portfolio returns are giving additional support to the business. We remain focused on our life insurance business to attract fresh liquidity. Protection, where we have doubled our market share in the past four years, will continue to serve as a key growth engine for the group. We see substantial untapped potential within the existing client base and across the Italian market, which we aim to capture through our Omnichannel platform. In addition, third-party networks will provide a meaningful contribution to the growth of the business. Let's move to slide 25. Ahead of the creation of the new financial hub, post-pay services will continue to generate revenue and profitability growth for the group in 2026. In payment, we confirm our above-market growth driven by e-commerce leadership and enhanced customer experience. In telco, we expect the stability of customer base and revenues while the transition to team mobile infrastructure will deliver cost savings already in 26. Finally, energy growth will be further boosted by the team partnership. We are confident to reach 1.4 million contracts by the end of the year. Let's move to the key financial targets starting from slide 26. We expect organic revenues to continue to grow steadily reaching 13.5 billion in 26 with a positive contribution from all segments and increasing exposure to growing businesses. The growth trajectory will continue into 26 with an adjusted guidance of more than 3.3 billion and net profit excluded excluding equity accounting of the team stake at 2.3 billion. We will update this guidance and provide visibility beyond 26 in our multi-year strategic plan before year-end. We are further reinforcing our dividend policy, payout greater than 70% applied to the net profit excluding the team stake, to which we will add the dividends received from team on a cash-for-cash basis. We expect to receive approximately 100 million in cash dividends from team in 27 and in addition to stake accretion from the recently announced team share buyback of up to 400 million. With Poste Italiane as the largest long-term strategic shareholder, team governance has been stabilized, unlocking long-term strategic priorities and paving the way for future earnings and shareholder remuneration growth in the firm. Let's move to slide 27. Let's look at what underpins our full confidence in the reinforced dividend policy. It is backed by a diversified dividend stream from our subsidiaries, with a solid coverage ratio of around 1.7 times in 2025 and 2026. The group cash generation remains strong, with the net financial position improving on an underlying basis, factoring in competitive shareholder remuneration and continued investment in business growth. At the end of 2026, Postedita Solvency II will land at a solid 20% 290% solvency to ratio on a pro forma expected basis. And this includes the 500 million additional remittance to be accrued in 2026. Our leverage remains low with around 4 billion of untapped debt capacity and growing EBIT. Finally, distributable reserves at the parent company level projected around 4.4 billion by the end of 26, a 1 billion improvement from 3.4 billion level at the end of 25. And thank you now and over to Camillo for a deep dive into the financials.

Thank you, Matteo, and good morning, everyone. I too am pleased to report that POS Italiana delivered an excellent set of results in both the four quarter and full year 2025. These were the strongest Q4 and full year results ever reported by the group in terms of revenues, EBIT and net profit. Focusing on the full year revenues came at 13.1 billion, up 4% year on year. Adjusted EBIT at 3.2 billion, net profit at 2.2 billion, both up 10%. In Q4, we posted a record group revenues of 3.5 billion, up 4% year-on-year. Adjusted EBIT reached 729 million, while net profit increased to 447 million, both up 7%. On slide 30, you can see how our profitability growth continues to be supported by sound top-line progression in cost discipline. Looking ahead, we are guiding for 2026 revenues to reach 13.5 billion, with adjusted EBIT higher than 3.3 billion, and net profit, excluding the impact of the team stake, up to 2.3 billion. Our healthy profitability, visibility on cash flows and capital generation give us the confidence to commit to a payout ratio for 2026 higher than 70%. While going forward, we see upside from team dividends. In the next slides, we'll look at 2026 guidance for all our businesses. In 2025, mail parcel distribution revenues were up 3% to 3.95 billion, with parcel delivering a strong growth across all customer segments. Mail revenues were in line with guidance and supported by favorable business mix and repricing measures. We expect these trends to continue into 2026. Mail revenue will be supported by repricing actions, partially offsetting structural volume decline. Parcel and logistics revenues are poised to reach mail revenue in 2026, driven by sustained parcel growth across all customer segments and contract and healthcare logistics revenues up more than 20% year-on-year. Overall, we are looking at 4.1 billion external revenues for 2026, while EBIT is expected to be at around 0.1 billion. In financial services, revenues grew 4% to 6.7 billion in 2025, mostly on the back of strong investment portfolio revenues, up 4% to 2.7 billion. For 2026, we expect a top line at around 6.8 billion, with investment portfolio revenues remaining resilient in a normalized interest rate environment. Our active portfolio management component is already secured for the whole year, and the gross annualized capital gains, currently amounting to over 2.5 billion, give us ample flexibility to achieve our targets. Postal saving fees will remain stable, benefiting from a renewed product offering and strong commercial focus. Our consumer loans business will continue to be supported by the strength of our multi-partnership model. Finally, higher assets under management will drive higher fees. We have a strong visibility on 2026 investment portfolio revenues and absolute confidence in achieving at least the same revenues as 2025, only with a marginally higher active portfolio management component, which has already been secured. Our rate sensitivity remains broadly unchanged versus last year. A 100 basis point downward parallel shift of the swap curve would lower fiscal year 26 and an high yield by circa 20 basis points, less than 200 million, while generating 1.9 billion additional gross annualized capital gains. Insurance service revenues reached over 1.8 billion in 2025, up a remarkable 11% year on year, driven by both life and protection. Life investment and pension technical reserves reached $170 billion in 2025, up from $165. We expect our insurance assets to further grow in 2026 and our margins to improve, leading to life revenues of $1.7 billion. Protection gross return premium grew 21% year-on-year to $1.2 billion, and we see this trend continue in 2026, where we are targeting $1.3 billion and a further improved combined ratio at 83% or less. This will lead to protection revenues contributing by more than 10% to total insurance revenues. Finally, we anticipate resilient profitability supported by positive top-line trends and slightly lower free capital returns due to the additional remittance to the parent company. Solvency to ratio at 3 or 4% remains solid and well above the managerial ambition. In line with what we have announced last year and thanks to the strong capital buffer, the solvency ratio embeds the second 500 million tranche of additional remittance to be paid by post evita to the parent company this year. On top of 100% of net profit and the repayment of the 250 million tier 2 loan done in October 2025. Impressively, over the 2024-2026 period, the total cash remitted by Postevita to the parent company will amount to 5 billion, 600 million more than what was originally planned. The performance of the situation, embedding the final 500 million additional remittance tranche to be accrued at the end of 2026, is at around 290%. 2025 saw a 5% revenue growth for post-pay services, up to $1.7 billion, with strong adjusted EBIT up 11%. In 2026, we are looking at revenues of 1.8 billion, with payment revenues sustained by organic growth in transaction value at 7%, and total number of transactions up 8%. The energy business will continue to grow in 2026, supported by an enlarged customer base, as well as the contribution from the team distribution. Finally, we can confirm solid EB growth also in 2026. In 2025, we continue to work on our people transformation, driving higher productivity with the value added per FTE reaching €90,000. In 2026, we will further renew our workforce and we will focus our hiring efforts on expanding business activities, leading to 120,000 FTEs by year end. In 2025, total HR costs came in at 5.73 billion, driven by higher salaries as per the 2024-2027 labor agreement and a variable component linked to commercial targets. Productivity-improving trends are confirmed, with ordinary HR costs on revenues down to 39%. 2026 HR costs are expected at 5.9 billion. Total non-HR costs for 2025 are 4.71 billion, with variable cost trends reflecting higher business volumes. We expect these trends to continue also in 2026, with non-HR costs landing at 5 billion. Variable costs on variable revenues are anticipated to improve to 60%. Let me remark that over the 2024-2026 period, we have achieved 900 million of cumulative cost savings, thanks to around 50 different cost reduction initiatives across insourcing, cloud optimization, process automation, energy efficiency, and contracts renegotiation. As always, our focus on cost discipline remains razor sharp, and protecting our bottom line remains a top priority for the group. At the same time, we continue to increase our capital expenditure in key areas of development to support the business transformation. In 2026, we expect 1.1 billion capex, excluding Polish, with the last share of investments in the hybrid cloud transformation and IT platform coupled with the logistics evolution. All the above investments are at budget and subject to approval of the investment committee, which has a specific return threshold for each project. That's all from me. Over to Matteo for some closing remarks.