The “2024 Sustain & Innovate Plan Plus” aims to achieve responsible growth and accompany Italy’s path to sustainability and social inclusion.
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”.
“2024 Sustain & Innovate Plus” Strategic Plan
Mail, Parcel and Distribution
The strategic objective of Mail, Parcel and Distribution segment is to accelerate its transformation from a pure mail operator to a full logistics operator, ensuring the economic and environmental sustainability of its operations. Implementation of the strategy is based on streamlining of the distribution networks, including the integration of Nexive, acquired at the end of 2020, consolidation of leadership in the B2C market and growth in the C2X and B2B segments through the introduction of specific offers and initiatives aimed at improving the customer experience. From this point of view, the Plurima acquisition will reinforce the contract logistics segment. Through the implementation of these strategic directions, the segment aims to achieve operational break-even by 2024 and an operating profit in 2024.
- Revenue: €3.9 billion (2019: €3.5 billion), with an increase in revenue from the Parcels segment and easing of the decline in the Mail segment.
- Revenue from the Parcels segment: €2.0 billion (2019: €0.85 billion)
- EBIT: operating profit eexpected by 2024.
- Double the volume of automatically sorted parcels.
- B2C parcels market share: 38% by 2024.
- C2X market share: 57% by 2024 (2019: 41%).
Payments and Mobile
The Payments and Mobile area aims to establish itself as a complete and omni-channel platform for its customers, flanking the traditional business lines of payments and telecommunications with an offer dedicated to Energy from 2022, a market which the company will enter by taking advantage of its liberalisation. From this point of view, the LIS acquisition will contribute further to the Group’s omni-channel strategy. The expansion of products, together with the ability to exploit physical and digital channels and third-party networks, will make it possible to fully exploit
cross-selling opportunities for customers, thereby increasing value for Poste Italiane as a whole.
- Revenue:€1.9 billion (2019: €0.7 billion).
- EBIT:€0.4 billion (2019: €0.2 billion), with CAGR of 1%.
- Expected Postepay Evolution portfolio of 11.6 million cards issued.
- Expected card transactions as CAGR up 14%, to reach €2.7 billion.
Financial Services aims to further evolve its service model by combining the traditional physical model with the opportunities provided by technological innovation. The priorities of the Strategic Plan include growth in wealth management, thanks to the diversification of customer portfolios to optimise their risk-return profile, the integration of non-life policies within the advisory model and a renewed focus on loans, with particular emphasis on the CQS segment, also thanks to partnerships signed with leading operators in the sector. The business related to the purchase of tax credits on building bonuses represents an opportunity to diversify the investment portfolio.
- Revenue: €6.1 billion (2019: €5.8 billion).
- EBIT: €0.7 billion (2019: €0.9 billion).
- Common Equity Tier 1 Capital: 17%.
- Total financial assets: a rise to €615 billion from €569 billion in 2020, with increased penetration of life products.
In Insurance Services Poste Italiane aims to establish itself as an insurance operator capable of serving all customers’ investment and protection needs. Poste Vita aims to confirm its position as leader in the life insurance sector, continuing to offer customers safe products that are both more profitable and more capital efficient. Lastly, the non-life insurance strategy envisages an increase in profitability thanks to the modular offer, supplemented by car insurance, provided to customers without assuming risk thanks to distribution agreements signed with leading Italian insurance companies.
- Revenue: €2.7 billion (2019: €1.7 billion).
- EBIT: €1.3 billion (2019: €0.8 billion).
- Net profit: 5% CAGR in the period 2019-2024.
- Solvency Ratio: >200%.
- Gross premium revenue: €26.5 billion (2020: €16.7 billion).
- Double the average premium of the modular offer.
- 8.000 post offices enabled to sell car policies by 2024.