The Group’s performance in 2022 is solid and up on 2021 with a record EBIT value (€2,291 million, +24.1% y/y) in the Group’s history.
These results confirm the effectiveness of the strategic guidelines defined by management and their execution, as well as the resilience
demonstrated by the Group, which benefits from a diversified business structure and has continued to operate and grow in an uncertain economic scenario.
Group (Net Debt)/Funds
(€ m)
Total net debt/(funds) at 31 December 2022 showed funds of €2,406 million, down €4,752 million from 31 December 2021 (surplus of €7,158 million).
Consolidated financial statements
Consolidated statement of financial position
| ASSETS | Notes | 31 December 2022 | of which related parties | 31 December 2021 | of which related parties |
| Non-current assets | |||||
| Property, plant and equipment | [A1] | 2,404 | – | 2,267 | – |
| Investment property | [A2] | 31 | – | 32 | – |
| Intangible assets | [A3] | 1,817 | – | 873 | – |
| Right-of-use assets | [A4] | 1,334 | – | 1,116 | – |
| Investments accounted for using the equity method | [A5] | 267 | 267 | 277 | 277 |
| Financial assets | [A6] | 191,850 | 3,578 | 221,226 | 3,780 |
| Trade receivables | [A8] | 3 | – | 3 | – |
| Deferred tax assets | [C12] | 2,044 | – | 1,245 | – |
| Other receivables and assets | [A9] | 4,118 | 2 | 4,012 | 2 |
| Tax credits Law no. 77/2020 | [A10] | 7,458 | – | 5,551 | – |
| Technical provisions attributable to reinsurers | 44 | – | 50 | – | |
| Total | 211,370 | 236,652 | |||
| Current assets | |||||
| Inventories | [A7] | 157 | – | 155 | – |
| Trade receivables | [A8] | 2,179 | 435 | 2,508 | 575 |
| Current tax assets | [C12] | 140 | – | 115 | – |
| Other receivables and assets | [A9] | 1,096 | 10 | 1,146 | 8 |
| Tax credits Law no. 77/2020 | [A10] | 1,563 | – | 905 | – |
| Financial assets | [A6] | 34,290 | 11,986 | 27,630 | 12,855 |
| Cash and deposits attributable to BancoPosta | [A11] | 5,848 | – | 7,659 | – |
| Cash and cash equivalents | [A12] | 4,983 | 1,991 | 7,958 | 1,991 |
| Total | 50,256 | 48,076 | |||
| TOTAL ASSETS | 261,626 | 284,728 |
| LIABILITIES AND EQUITY | Notes | 31 December 2022 | of which related parties | 31 December 2021 | of which related parties |
| Equity | |||||
| Share capital | [B2] | 1,306 | – | 1,306 | – |
| Reserves | [B4] | (352) | – | 3,599 | – |
| Treasury shares | (63) | – | (40) | – | |
| Retained earnings | 8,002 | – | 7,237 | – | |
| Total equity attributable to owners of the Parent | 8,893 | 12,102 | |||
| Equity attributable to non-controlling interests | 44 | – | 8 | – | |
| Total | 8,937 | 12,110 | |||
| Non-current liabilities | |||||
| Technical provisions for insurance business | [B5] | 139,986 | – | 159,089 | – |
| Provisions for risks and charges | [B6] | 804 | 55 | 693 | 59 |
| Employee termination benefits | [B7] | 705 | – | 922 | – |
| Financial liabilities | [B8] | 10,939 | 201 | 15,122 | 154 |
| Deferred tax liabilities | [C12] | 700 | – | 953 | – |
| Other liabilities | [B10] | 2,004 | – | 1,749 | – |
| Total | 155,138 | 178,528 | |||
| Current liabilities | |||||
| Provisions for risks and charges | [B6] | 551 | 12 | 575 | 13 |
| Trade payables | [B9] | 2,234 | 72 | 2,029 | 82 |
| Current tax liabilities | [C12] | 60 | – | 16 | – |
| Other liabilities | [B10] | 2,000 | 69 | 1,860 | 73 |
| Financial liabilities | [B8] | 92,706 | 4,377 | 89,610 | 3,646 |
| Total | 97,551 | 94,090 | |||
| TOTAL LIABILITIES AND EQUITY | 261,626 | 284,728 |
Consolidated statement of profit or loss
| (€m) | Notes | FY 2022 | of which related parties | FY 2021 | of which related parties |
| Revenue from Mail, Parcels and other | [C1] | 3,651 | 839 | 3,694 | 466 |
| Net revenue from Financial Services | [C2] | 4,938 | 2,048 | 4,783 | 1,909 |
| Revenue from Financial Services | 5,125 | 2,052 | 4,931 | 1,917 | |
| Expenses from financial activities | (187) | (4) | (206) | (8) | |
| Revenue from Insurance Services after changes in technical provisions and other claim expenses | [C3] | 2,153 | 16 | 1,861 | 15 |
| Insurance premium revenue | 17,518 | – | 17,829 | – | |
| Income from insurance activities | 4,437 | 16 | 4,374 | 15 | |
| Change in technical provisions for insurance business and other claim expenses | (13,794) | – | (19,964) | – | |
| Expenses from insurance activities | (6,008) | – | (378) | – | |
| Revenue from Payments and Mobile | [C4] | 1,147 | 51 | 882 | 49 |
| Net operating revenue | 11,889 | 11,220 | |||
| Cost of goods and services | [C5] | 2,960 | 167 | 2,873 | 161 |
| Personnel expenses | [C6] | 5,226 | 71 | 5,467 | 75 |
| Depreciation, amortisation and impairments | [C7] | 830 | – | 790 | — |
| Capitalised costs and expenses | [C8] | (41) | – | (33) | — |
| Other operating costs | [C9] | 519 | 5 | 253 | 6 |
| of which non-recurring costs | 320 | – | |||
| Impairment losses/(reversals of impairment losses) on debt instruments, receivables and other assets | [C10] | 104 | 1 | 24 | (4) |
| Operating profit/(loss) | 2,291 | 1,846 | |||
| Finance costs | [C11] | 126 | 2 | 73 | 2 |
| Finance income | [C11] | 169 | 1 | 369 | 1 |
| of which, non-recurring income | – | 225 | |||
| Impairment losses/(reversals of impairment losses) on financial assets | – | – | – | – | |
| Profit/(Loss) on investments accounted for using the equity method | [A5] | (6) | – | 26 | – |
| Profit/(Loss) before tax | 2,328 | 2,168 | |||
| Income tax expense | [C12] | 817 | – | 588 | – |
| of which, non-recurring costs/(income) | – | (96) | |||
| Net profit for the year | 1,511 | 1,580 | |||
| of which attributable to owners of the Parent | 1,506 | 1,578 | |||
| of which attributable to non-controlling interests | 5 | 2 | |||
| Earnings per share | [B1] | 1.158 | 1.214 | ||
| Diluted earnings per share | 1.158 | 1.214 |
Consolidated statement of comprehensive income
| (€m) | Notes | FY 2022 | FY 2021 |
| Profit/(Loss) for the year | 1,511 | 1,580 | |
| Items to be reclassified in the Statement of profit or loss for the year | |||
| FVOCI debt instruments and receivables | |||
| Increase/(decrease) in fair value during the year | [tab. B4] | (4,747) | (1,052) |
| Transfers to profit or loss | [tab. B4] | (161) | (424) |
| Increase/(decrease) for expected losses | 4 | (6) | |
| Cash flow hedges | |||
| Increase/(decrease) in fair value during the year | [tab. B4] | 279 | (178) |
| Transfers to profit or loss | [tab. B4] | (409) | (8) |
| Taxation of items recognised directly in, or transferred from, equity to be reclassified in the Statement of profit or loss for the year | 1,440 | 475 | |
| Share of after-tax comprehensive income/(loss) of investees accounted for using equity method | 1 | – | |
| Change in translation reserve | (1) | 1 | |
| Items not to be reclassified in the Statement of profit or loss for the year | |||
| Equity instruments valued at FVOCI – increase/(Decrease) of fair value in the period | (315) | 75 | |
| Actuarial gains /(losses) on employee termination benefits | [tab. B7] | 125 | (4) |
| Taxation of items recognised directly in, or transferred from, equity not to be reclassified in the Statement of profit or loss for the year | (30) | 2 | |
| Share of after-tax comprehensive income/(loss) of investees accounted for using equity method | – | – | |
| Total other comprehensive income | (3,814) | (1,119) | |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (2,303) | 461 | |
| of which attributable to owners of the Parent | (2,309) | 459 | |
| of which attributable to non-controlling interests | 6 | 2 |
Consolidated statement of changes in equity
| (€m) | Equity | |||||||||||||
| Share capital | Treasury shares | Reserves | Retained earnings | Total equity attributable to owners of the Parent | Equity attributable to noncontrolling interests | Total equity | ||||||||
| Legal reserve | BancoPosta RFC reserve | Equity instruments perpetual hybrid bonds | Fair value reserve | Cash flow hedge reserve | Translation reserve | Reserve for investments accounted for using equity method | Incentive plans reserve | |||||||
| Balance at 1 January 2021 | 1,306 | (40) | 299 | 1,210 | – | 2,294 | 98 | – | 2 | 6 | 6,327 | 11,502 | 5 | 11,507 |
| Total comprehens ive income for the year | – | – | – | – | – | (987) | (132) | 1 | – | 1,577 | 459 | 2 | 461 | |
| Dividends paid | – | – | – | – | – | – | – | – | – | – | (421) | (421) | – | (421) |
| Interim dividend | – | – | – | – | – | – | – | – | – | – | (241) | (241) | – | (241) |
| Incentive plans | – | – | – | – | – | – | – | – | – | 7 | – | 7 | – | 7 |
| Equity instruments perpetual hybrid bonds | – | – | – | – | 800 | – | – | – | – | – | (4) | 796 | – | 796 |
| Other changes | – | – | – | – | – | – | – | – | 1 | – | (1) | – | 1 | 1 |
| Balance at 31 December 2021 | 1,306 | (40) | 299 | 1,210 | 800 | 1,307 | (34) | 1 | 3 | 13 | 7,237 | 12,102 | 8 | 12,110 |
| Total comprehens ive income for the year | – | – | – | – | – | (3,811) | (93) | 1 | – | – | 1,596* | (2,309) | 6 | (2,303) |
| Dividends paid | – | – | – | – | – | – | – | – | – | – | (526) | (526) | (3) | (529) |
| Interim dividend | – | – | – | – | – | – | – | – | – | – | (273) | (273) | – | (273) |
| Purchase of treasury shares | – | (25) | – | – | – | – | – | – | – | – | – | (25) | – | (25) |
| Transactions with minority shareholders | (69) | (69) | – | (69) | ||||||||||
| Incentive plans | – | 2 | – | – | – | – | – | – | – | 6 | – | 8 | – | 8 |
| Coupons paid to holders of perpetual hybrid bonds | – | – | – | – | – | – | – | – | – | – | (16) | (16) | – | (16) |
| Other changes | – | – | – | – | – | (54) | – | – | 2 | – | 54 | 2 | – | 2 |
| Change in scope of consolidation | – | – | – | – | – | – | – | – | – | – | (1) | (1) | 33 | 32 |
| Balance at 31 December 2022 | 1,306 | (63) | 299 | 1,210 | 800 | (2,558) | (127) | – | 5 | 19 | 8,002 | 8,893 | 44 | 8,937 |
* This item includes profit for the year (Group portion) of €1,578 million and actuarial losses on provisions for employee termination benefits of €1 million, after the related current and deferred taxation.
Consolidated statement of cash flows
| Note | Esercizio 2022 | Esercizio 2021 | |
| Cash and cash equivalents at beginning of year | 7,958 | 4,516 | |
| Profit/(Loss) before tax | 2,328 | 2,168 | |
| Depreciation, amortisation and impairments | [tab, C7] | 830 | 790 |
| Impairments/(Reversals of impairments) of investments | [tab, C11,1] | – | (225) |
| Net provisions for risks and charges | [tab, B6] | 439 | 363 |
| Use of provisions for risks and charges | [tab, B6] | (354) | (501) |
| Provisions for employee termination benefits | [tab, B7] | 2 | 1 |
| Employee termination benefits | [tab, B7] | (118) | (129) |
| Gains)/Losses on disposals | (1) | 2 | |
| Impairment losses/(reversals of impairment losses) on financial assets | (1) | – | |
| (Dividendi) | [tab, C11,1] | – | – |
| Dividendi incassati | – | – | |
| (Finance income realised) | [tab, C11,1] | (1) | (3) |
| (Finance income in form of interest) | [tab, C11,1] | (158) | (136) |
| Interest received | 146 | 133 | |
| Interest expense and other finance costs | [tab, C11,2] | 118 | 64 |
| Interest paid | (78) | (32) | |
| Losses and impairment losses/(reversals of impairment losses) on receivables | [tab, C10] | 97 | 33 |
| Income tax paid | [tab, C12,3] | (509) | (394) |
| Other changes | 6 | (20) | |
| Cash flow generated by operating activities before movements in working capital | [a] | 2,746 | 2,114 |
| Movements in working capital: | |||
| (Increase)/decrease in Inventories | [tab, A7] | 2 | 11 |
| (Increase)/decrease in Trade receivables | 261 | (184) | |
| (Increase)/decrease in Other receivables and assets | 192 | (45) | |
| Change in tax credits Law no. 77/2020 | 11 | (526) | |
| Increase/(decrease) in Trade payables | 91 | 129 | |
| Increase/(decrease) in Other liabilities | 233 | 244 | |
| Cash flow generated by /(used in) movements in working capital | [b] | 790 | (371) |
| Increase/(decrease) in liabilities attributable to financial activities, payments, cards and acquiring and insurance | 5,077 | 10,813 | |
| Net cash generated by/(used for) financial assets and tax credits Law no. 77/2020 attributable to financial activities, payments, cards and acquiring and insurance | (17,954) | (13,294) | |
| pagamenti e monetica. assicurativa | |||
| (Incremento)/Decremento della Cassa e depositi BancoPosta | [tab, A11] | 1,810 | (1,268) |
| Increase/(decrease) in net technical provisions for insurance business | 4,076 | 10,334 | |
| (Income)/Expense and other non-cash components | 3,635 | (4,144) | |
| Cash generated by/(used for) financial assets/liabilities attributable to financial activities, payments, cards and acquiring and insurance | [c] | (3,356) | 2,441 |
| Net cash flow from /(for) operating activities | [d]=[a+b+c] | 180 | 4,184 |
| of which related party transactions | 1,971 | (5,975) | |
| Investing activities:: | |||
| Property, plant and equipment | [tab, A1] | (341) | (342) |
| Investment property | [tab, A2] | – | – |
| Intangible assets | [tab, A3] | (469) | (412) |
| Investments | (3) | (50) | |
| Other financial assets | (132) | (4) | |
| Investments in consolidated companies net of cash acquired | (678) | (40) | |
| Disposals: | |||
| Property, plant and equipment, investment property, intangible assets and assets held for sale | 5 | 3 | |
| Other financial assets | 12 | 423 | |
| Net cash flow from /(for) investing activities | [e] | (1,606) | (422) |
| – of which related party transactions | (7) | (1) | |
| Proceeds from/(Repayments of) long-term borrowings | [tab, B8,4] | 110 | (87) |
| (Increase)/decrease in loans and receivables | – | – | |
| Increase/(decrease) in short-term borrowings | [tab, B8,4] | (812) | (366) |
| (Purchase)/sale of treasury shares | (25) | – | |
| Dividends paid | [B3] | (801) | (662) |
| Equity instruments – perpetual hybrid bonds | (21) | – | |
| Other transactions with minority shareholders | – | 794 | |
| Net cash flow from/(for) financing activities and shareholder transactions | [f] | (1,549) | (321) |
| – di cui parti correlate | (512) | (422) | |
| Effect of exchange rate differences on cash and cash equivalents | [g] | – | 1 |
| Net increase/(decrease) in cash | [h]=[d+e+f+g] | (2,975) | 3,442 |
| Cash and cash equivalents at end of year | [tab, A12] | 4,983 | 7,958 |
| Restricted cash and cash equivalents at end of year | (3,755) | (5,369) | |
| Unrestricted cash and cash equivalents at end of year | 1,228 | 2,589 |