Poste Italiane Q4 & FY-22 Results and 2023 Guidance2022 record high EBIT up 24.1% y/y to €2.3bn, more than doubling the 2017 level of €1.1bn

IMPRESSIVE 2022 OPERATING PROFIT PROGRESSION SUPPORTED BY POSITIVE UNDERLYING CONTRIBUTION FROM ALL SEGMENTS

TOTAL REVENUES AT €11.9 BILLION, UP 6% Y/Y

MAIL, PARCEL & DISTRIBUTION REVENUES BROADLY STABLE AT €3.7BN THANKS TO RESILIENT MAIL AND PARCEL REVENUES

FINANCIAL SERVICES REVENUES UP 3.9% TO €5.8BN BOOSTED BY CONTINUED GROWTH IN NET INTEREST INCOME

2022 STRONG PERFORMANCE IN INSURANCE SERVICES ON BOTH LIFE AND P&C WITH REVENUES UP 15.7% TO €2.2BN

SOLID CONTRIBUTIONS FROM ALL BUSINESS LINES TO 2022 PAYMENTS & MOBILE REVENUES, UP BY A STRONG 30.0% Y/Y TO €1.1BN MORE THAN DOUBLING VS 2017 - NEW ENERGY OFFER UP AND RUNNING

25.7MN DIGITAL IDs ISSUED, 14 TIMES THE 2017 LEVEL, CONFIRMING POSTE ITALIANE’S KEY ROLE IN ACCELERATING ITALY’S DIGITAL TRANSITION

GROWTH PATH EXPECTED TO CONTINUE INTO 2023 THANKS TO SUPPORTIVE TRENDS AND VISIBILITY ON COST BASE

2022 PROPOSED DIVIDEND INCREASED TO €0.65 (+10% Y/Y) SUPPORTED BY STRONG FINANCIAL PERFORMANCE AND GREATER VISIBILITY OVER 2023¹

2022 GROUP FINANCIAL HIGHLIGHTS

• ·FY-22 REVENUES CONTINUED GROWTH OF 6.0%Y/Y TO €11.9BN (+13.3% Y/Y TO €3.1BN IN Q4-22) - INCREASING BY 12.0% COMPARED TO €10.6BN OF         FY-17:
  • oFY-22 MAIL, PARCEL & DISTRIBUTION REVENUES AT €3.7BN, -1.2% Y/Y (-1.0% Y/Y TO €1.0BN IN Q4-22) - BROADLY STABLE (+0.5% Y/Y) COMPARED TO 2017 LEVELS, WITH MAIL SECULAR DECLINE SUCCESSFULLY MITIGATED BY THE GROWING B2C PARCEL BUSINESS.
  • oFY-22 FINANCIAL SERVICES GROSS REVENUES TO €5.8BN, +3.9% Y/Y (+9.7% Y/Y TO €1.4BN IN Q4-22) – INCREASING BY 2.0% COMPARED TO €5.6BN OF FY-17 – THANKS TO A STRONG INCREASE IN RECURRING NII, BENEFITTING FROM THE FAVOURABLE INTEREST RATES ENVIRONMENT, COUPLED WITH REDUCED RELIANCE ON ACTIVE PORTFOLIO MANAGEMENT.
  • oFY-22 INSURANCE SERVICES REVENUES TO €2.2BN, +15.7% Y/Y (+40.5% Y/Y TO €580M IN Q4-22), STRONGLY UP FROM €1.5BN OF 2017 (+48% Y/Y). POSITIVE NET INFLOWS OF €7.6BN (-5.8% Y/Y), WITH P&C GROSS WRITTEN PREMIUMS RISING ACROSS ALL PRODUCT LINES BY 23.0% TO €392M IN FY-22 (+26.0% Y/Y TO €91M IN Q4-22). CONFIRMED TRANSFORMATION INTO A FULLY-FLEDGED LEADING INSURANCE OPERATOR.
  • oFY-22 PAYMENTS & MOBILE REVENUES TO €1.1BN, +30.0% Y/Y (+40.2% Y/Y TO €368M IN Q4-22) – MORE THAN DOUBLE 2017 LEVEL OF €0.53BN, SUPPORTED BY CARD PAYMENTS - LIS CONSOLIDATION ACCELERATING GROUP OMNICHANNEL STRATEGY.

• FY-22 TOTAL COSTS TO €9.6BN, +2.4% Y/Y (+14.2% Y/Y TO €2.9BN IN Q4-22), INCREASING BY 1.6% COMPARED TO €9.5BN OF FY-17.

  • FY-22 ORDINARY HR COSTS, INCLUDING EARLY RETIREMENT INCENTIVES, TO €5.2BN (-1.5% Y/Y), DOWN €0.47BN SINCE 2017 (€5.6BN), BENEFITTING FROM INCREASED PRODUCTIVITY.

  • FY-22 NON-HR COSTS TO €3.8BN, UP 3.5% Y/Y, INCREASING BY €0.87BN FROM 2017 TO SUPPORT BUSINESS GROWTH.

• FY-22 EBIT AT €2.29BN, +24.1% OVER THE PREVIOUS YEAR’S LEVEL OF €1.8BN, MORE THAN DOUBLING COMPARED TO 2017 AND HIGHER THAN THE €2.0BN 24SI PLUS GUIDANCE.

• FY-22 NET PROFIT AT €1.51BN, DOWN 4.3% Y/Y, DOUBLING 2017 LEVEL OF €0.7BN.

POSTE ITALIANE 2023 GUIDANCE

2023 GROUP FINANCIAL TARGETS²

Poste Italiane is well positioned to continue its steady growth path in a challenging environment, thanks to its diversified business model:

• 2023 Operating Profit targeted at €2.5bn, from a baseline 2022 EBIT of €2.36bn with contribution from all businesses lines more than offsetting headwinds from cost inflation and Poste Energia business start-up costs.

• Net Profit: €1.7bn vs. FY-22 level of €1.51bn.

·2023 Dividend per share up to €0.71 (+9% y/y), thanks to increased visibility of capital and cash flow generation across all businesses.

 
 
POSTE ITALIANE CONTINUES TO DELIVER VALUE TO ALL STAKEHOLDERS THROUGH DIGITALIZATION AND SOCIAL INCLUSION.
CONFIRMED COMMITMENT TO THE DEVELOPMENT OF OUR PEOPLE, AS A KEY ASSET FOR THE GROUP’S COMPETITIVENESS AND SUTAINABLE GROWTH FOR THE COUNTRY.
ON TRACK TO CARBON NEUTRALITY BY 2030.
 
2022 KEY RESULTS:
Poste Italiane created economic value both for our stakeholders and for the country, in terms of:

• Gross Domestic Product: €12.9 billion.

• Employment income: €7.0 billion.

• Taxes paid to the Public Administration: €2.1 billion.

The Group continues to support Italy’s socio-economic growth by remaining an integral part of local communities.

• Financial and digital education initiatives: around 70,000 people involved since the beginning of the year. During the fifth edition of the Financial Educational Month (#ottobreEdufin22), Poste Italiane developed a series of webinars to help make Italians more aware of their insurance, pension and financial planning choices.

• Agreement with Unimpresa: Poste Italiane will offer innovative products and services to micro, small and medium enterprises.

• Renewed the security agreement between Poste Italiane and the Italian State Police: long-standing collaboration ensuring relevant synergies to prevent financial crimes.

Obtained remarkable awards for our Human Capital Management practices, supporting innovation and the dissemination of an inclusive corporate culture.

• Poste Italiane is “Top Employer” for the fourth consecutive year, thanks to the excellence in training and welfare policies. In 2022, around six million hours of training have been delivered and a parenting policy has been introduced.

• Poste Italiane is first among the largest FTSEMIB companies to receive the ISO 30415:2021, for our commitment in integrating diversity and inclusion principles.

• Obtained Equal Salary certification, rewarding Poste Italiane’s concrete application of equal pay in line with Group’s commitment in fostering fairness and merit.

• Received the "Assochange" award for "INSIEME-24SI" project, that involved Group’s employees, creators of 1,300 ideas for the execution of the ESG Strategy since the start of the programme.

Progressing in reducing impacts from our operations contributing to achieve the transition to a low-carbon economy.

• The delivery fleet electrification project is ahead of schedule and Fortune magazine has included Poste Italiane in its prestigious "2022 Change the World” list. At the end of 2022, the number of low-emissions postini vehicles was approximately 23,000 (of which c.3,600 electric vehicles) while the number of fully green delivery centres was 28 (of which 13 completed in 2022). The flexible parcels delivery solution through our Punto Poste network, allowed the reduction in the number of kilometres travelled by half a million, for a total of c.50 tons of CO_2eq saved, since the beginning of the year.

• Real estate management initiatives significantly contributed to Poste Italiane’s decarbonization path. In 2022, around 1,600 buildings were included in energy efficiency projects. In December a new photovoltaic plant was installed at the parcel sorting hub at Pomezia, near Rome. With 1,170 solar panels and 1,900sqm footprint, this installation is one of the largest in Italy.

Confirmed our commitment to responsible investments for a sustainable growth.

• Group’s sustainability investment strategy high-quality level confirmed: the half-year monitoring of the ESG profile and carbon footprint of the BancoPosta Fondi SGR and Poste Vita portfolios recorded stronger performance than reference benchmarks.

• Expanded range of investment and insurance products integrating ESG criteria. The weight of BancoPosta Fondi’s open-ended retail funds integrating ESG criteria has reached 88% (42% in 2021), while the percentage of Poste Vita products with ESG elements reached 60% (50% in 2021).

• Continued the participation to collective dialogue on sustainable finance issues. This year, BancoPosta Fondi SGR was among the main Italian asset managers that took part in working groups organized by “Forum per la Finanza Sostenibile” and in the “Digital Italian Sustainability Week” hosted by Borsa Italiana. BancoPosta Fondi SGR also published its annual voting and engagement report.

Rome, 30 March 2023, yesterday, the Board of Directors of Poste Italiane S.p.A. (“Poste Italiane” or the “Group”), chaired by Maria Bianca Farina, approved the consolidated 2022 Results, prepared in compliance with IAS/IFRS, and the 2023 guidance.

Matteo Del Fante, Poste Italiane Chief Executive Officer and General Manager commented: “Poste Italiane reported solid results with a record high 2022 EBIT, more than doubling compared to 2017. All segments contributed to underlying operating profitability progression, confirming once again robust foundations for future growth.

Our transformation programme, based on 'Deliver22', our first Strategic Plan, has now been fully implemented with all key targets achieved.

We are evolving from a traditional logistics operator into an omnichannel distribution platform leveraging our strategic investments in technology and data driven capabilities. Our people have made and continue to make a significant difference. We have hired 26 thousand FTE, invested in training, upskilling and reskilling with value added per FTE up 25% since 2017.

In the past 5 years, we have faced several challenges, such as those presented during the Covid-19 pandemic, as well as a turbulent macro-environment.

These factors have had a significant impact on both the economy and our customers. Poste Italiane’s anti-fragile approach, as a response, has enabled the effective delivery of all commitments towards stakeholders.

It is with this in mind that we have carried out a comprehensive assessment to make 2022 a very visible baseline for the new strategic plan we will be presenting later this year.

We are aware of our role as a strategic pillar for Italy as an integral part of the country for over 160 years and we launched the Polis project to support the country and local communities. Polis will provide a new way to access a range of Public Administration services, enabling cross-selling opportunities as well as supporting our service-model transformation in the future. Looking ahead to 2023 we see supportive business trends more than offsetting cost inflation. We see our targets achievable under different market conditions and supported by the strong commercial progress registered year-to-date.

Based on our overperformance, we are increasing our dividend for 2022 and 2023, compared to our original targets, proposing a DPS of 65 cents on 2022 results, an increase of 10% compared to last year level, and we are setting an upgraded target DPS of 71 cents on 2023 results next year, up 9% on yearly basis”.
 

¹Subject to AGM approval. 
²Guidance does not include the impact of the conflict in Eastern Europe on GDP growth.

POSTE ITALIANE Q4 & FY-22 GROUP RESULTS & 2023 GUIDANCE

Thursday 30 March 2023 - 10:00 CEST

To attend click here:  Q4 & FY-22 GROUP RESULTS AND 2023 GUIDANCE

A listen only audio conference is also available: +39 02 8020927          

Leggi il comunicato stampa integrale in versione pdf


For further information:
 
Poste Italiane S.p.A. Investor Relations         Poste Italiane S.p.A. Media Relations
Tel. +39 06 5958 4716                                           Tel. +39 06 5958 2097
Mail: investor.relations@posteitaliane.it             Mail: ufficiostampa@posteitaliane.it