Letter to Shareholders

Shareholders,

on behalf of the entire Board of Directors, we are pleased to present to you the Annual Report of the Poste Italiane Group, which for the seventh consecutive year integrates financial information with sustainability information and includes, as a new feature, the inclusion of the Sustainability Statement within a specific section of the Report on Operations, in line with the provisions of Legislative Decree 125/2024, which implements the European Corporate Sustainability Reporting Directive (CSRD) on sustainability reporting.

We are all aware that 2024 was a particularly difficult year, marked by unprecedented challenges due to converging crises. The effects of the profound changes brought about by the health emergency some four years ago, together with the growing evidence of climate change, are part of a global context characterised by geopolitical and economic instability. The conflict between Russia and Ukraine continues without clear prospects of a resolution, while tensions in the Middle East, heightened by the conflict between Israel and Hamas in 2023, remain a major factor of instability. Meanwhile, the results of the US presidential elections and the European elections throw up elements of uncertainty in the international equilibrium and open up new political and strategic scenarios. On the economic front, inflation remains a critical variable, influenced by the monetary policies of the major central banks and developments in the energy market.

The climate was also a cause for new alarms: 2024 saw record temperatures and increasingly frequent extreme weather events. Natural disasters related to climate change are having devastating impacts on economies and populations, making a more effective and coordinated global response a matter of urgency. In an increasingly complex and ever-changing scenario, the global system is called upon to find innovative and sustainable solutions to the economic, geopolitical, climate and social challenges that are redefining our present and future. With regard to environmental sustainability, special attention was paid to COP 29, held in November 2024 in Baku, which brought together the signatory states of the UN Climate Change Convention to discuss future strategies to tackle the climate crisis. This summit provided an important opportunity to strengthen global commitments to reducing emissions and financing adaptation and mitigation initiatives. In this context, the European Union and its Member States continue to play a leading role in supporting the most vulnerable countries, contributing to the debate on climate financing and how to implement international agreements. According to the World Economic Forum's Global Risk Report 2024, extreme weather events as an effect of climate change are generating significant social and economic impacts. The report highlights the need to undertake adequate adaptation initiatives and strategies to cope with the intensity and speed of the transformations taking place, as well as the global risks involved. From an economic and social point of view, pressures on the rising cost of living lead to a reduction in people's prospects and expectations, fuelling a widespread sense of uncertainty related to inflation, which is difficult to contain. This situation further increases the difficulties in coping with daily needs. In this scenario, the most relevant risk identified for the 2024-2026 three-year period is disinformation, a phenomenon that, in an increasingly interconnected environment, can amplify real risks or compromise the ability to manage them effectively. The main critical issues identified include not only extreme climatic events, but the growing social and demographic polarisation, as well as difficulties in the governance of technological accelerations, with particular reference to cyber security risks.

In this context, the Poste Italiane Group was able to continue its sustainable growth path, developing its activities in all strategic areas. The changed context has made clear the importance of a strategy based on continuous innovation, capable of anticipating and driving change, which has now become a constant in order to guarantee sustainable economic and social value in the long-term. Thanks to a far-sighted vision, the Poste Italiane Group has been able to identify the new needs of customers and citizens and evolve, responding with speed and efficiency. The Poste Italiane Group responded to the progressive reduction in demand for traditional mail delivery services, caused by the gradual replacement of physical mail with digital mail, by strengthening its presence in delivery and logistics services, positioning itself in line with the leading global operators in the sector. This was made possible by an effective internal reorganisation and numerous partnerships and acquisitions, particularly in the last three years, with a focus on the areas of logistics and digital innovation. The consolidated leadership of the Poste Italiane Group in the payments sector testifies to the soundness of the strategic choices made over the years. The expansion of the range of services, embracing domestic, family and personal needs, has been made possible thanks to the widespread network of some 13,000 post offices throughout the country, which has enabled the Group to ensure its infrastructure continues to serve citizens.

The results achieved in 2024 were once again extraordinary: they exceeded market expectations and confirmed the positive trend of recent years, translating into generated value for all stakeholders. This success is the result of a long-term commitment to seize emerging opportunities and meet the needs of stakeholders and shareholders. In this regard, in 2024, the Poste Italiane Group generated a significant impact on the national economy, contributing a total of €14 billion to the formation of Gross Domestic Product (GDP), employing roughly 199 thousand people and contributing around €2.6 billion in tax revenue to the Public Administration. Furthermore, it is estimated that Poste Italiane Group contributed directly and indirectly to the distribution of income to workers, totalling €7.3 billion. This translates into a significant economic impact: for every euro invested by the Group in the purchase of goods and services, an added value for the country system of €3 is generate.

The Poste Italiane Group has resolutely pursued the digital transformation of its infrastructure and internal organisational processes, strengthening its market position. At the same time, it has never lost sight of key objectives such as decarbonisation, occupational health and safety and staff training. The Poste Italiane Group's ability to anticipate changes in the market environment has enabled it to make a real impact on the environment in which it operates. This path of growth has been developed in full respect of the traditional activities that have always represented the heart of the Group's identity, such as delivery, postal savings and financial and insurance services, while guaranteeing continuity and innovation in the offer to customers.
With a strong presence in the postal-logistics, financial, insurance and payment services, telephony and energy sectors, the Group continues to play a key role in the national economic landscape, with the aim of fostering responsible growth and promoting digital evolution. Through the achievement of financial, operational and sustainability objectives, the Group stands out for its solidity and ability to offer innovative solutions, even in a context characterised by significant challenges and transformations, confirming itself as a pillar of the Italian economy and maintaining its supremacy as the largest employer in the country and the main operator in the logistics sector. The commitment to digital transformation also continues to provide support to citizens, businesses and PAs in the process of digitising the country. In this context, the Poste Italiane Group consolidates its strategic role, ensuring an effective and efficient link between the various economic and social entities. A concrete example of the Group's commitment comes in the form of the "Polis Project, Houses of Digital Services", launched in 2022, with the aim of promoting the economic, social and territorial cohesion of the country and bridging the digital divide in small towns and inland areas, some 7,000 municipalities with a population of less than 15 thousand inhabitants, with post offices that, in addition to providing all postal, logistics, insurance, financial and payment services, also operate as a one-stop shop for digital access to Public Administration services. The initiative envisages total investments of around €1.2 billion to be realised by 31 December 2026 and the allocation by the Ministry of Enterprise and Made in Italy of a total contribution of €800 million. In more than two thousand post offices in municipalities with less than 15 thousand inhabitants, citizens can apply for Inps services, registry certificates and passports. Finally, work was completed on 81 co-working spaces.

The ongoing process of profound transformation and significant evolution has made our Group a reliable partner, recognised nationally and internationally, with a well-defined strategic development path founded on solid foundations. The direction we are taking has been clearly outlined in the 2024-2028 Strategic Plan, which aims to continue the transformation of the logistics sector, orienting it towards an end-to-end model capable of offering integrated solutions for all stages of the logistics chain. The focus will remain on developing products and services in line with market developments, while preserving the central role of postal savings within the Group's offering. In addition, thanks to the growing popularity of e-commerce and digital payments, the PostePay business will continue its evolution towards innovative payment solutions, representing the central focus of integration for the development of the telephony, electricity and gas offer, in order to meet customers' everyday needs. The Group will continue to expand and strengthen customer relationships through the Post Office network, digital channels and third-party networks, ensuring increasingly integrated and omnichannel experiences. The objective is to establish Poste Italiane as a constantly evolving business platform, based on a diversified, integrated and sustainable business model, capable of offering citizens a wide range of innovative services. The 2024-2028 Strategic Plan centres on the Environmental, Social & Governance (ESG) principles and responds to sustainability challenges by setting Group-wide emission reduction targets. These are complemented by initiatives aimed at developing professional skills and enhancing human resources, with a focus on diversity, inclusion and equal opportunities, identifying the needs of all generations, including young workers.

The Group's commitment to sustainable development is reflected in the update of the ESG Plan, renewed on the basis of the materiality analysis and in full synergy with the 2024-2028 Strategic Plan. The need to generate sustainable, long-term value for all stakeholders has never been more relevant than today. Indeed, the Poste Italiane Group is called upon to support the national economy throughout the country and to counteract the process of climate change through environmental sustainability measures. In support of this commitment, the Group has carried out specific initiatives according to two macro-areas - fleet overhaul and building energy efficiency - outlining projects that address both direct emissions generated by logistics activities and owned facilities, and indirect emissions associated with the electricity consumed. In addition, the Poste Italiane Group and Enilive (ENI Group) signed an agreement for the supply of biofuels for land vehicles and aircraft. The cooperation, which started with a letter of intent in July 2024, provides for the use of HVOlution, a diesel from renewable raw materials, for road transport, which is also operated via Multicard for external partners. For aviation, the agreement includes the supply of Eni Biojet, a sustainable fuel produced from 100% biological materials, which can be blended with conventional jet fuel up to 50%, at some Italian airports.

The "Green Index" certification was also obtained, an innovative carbon footprint measurement model, conforming to the highest industry standards, for the parcel service for the benefit of our customers. Finally, by 2028, through the PuntoPoste network, the Group aims to ensure the presence of a collection point at a maximum distance of 2.5 km from each customer throughout the country, thus contributing to a significant reduction in logistics-related atmospheric emissions.

The goals achieved in 2024 are therefore part of a context characterised by a growing commitment to Environmental, Social & Governance issues. On the skills development front, in 2024 the Poste Italiane Group provided around 6 million hours of training, through initiatives aimed at meeting the challenges of the strategic plan and supporting specific professional needs. In parallel, the corporate welfare platform was enhanced. In the area of diversity and inclusion, the LGBTQ+ Inclusion Policy was formalised in 2024, in addition to the Active Parenting Policy in force since 2022.

Customer satisfaction continues to be a priority for the Poste Italiane Group: as proof of its commitment in this area, Poste Italiane is the first among large Italian companies to have obtained UNI ISO 22222 and UNI TS 11348 certification for its investment advisory model aimed at customers through its specialised financial advisors. The digitisation process initiated by the Group involved both the evolution of the service offering and the optimisation of business processes, transforming the distribution model into one with an omnichannel approach. The Fraud Management Centre, operating 24 hours a day, monitored and protected transactions carried out both in post offices and through digital channels, preventing attempted fraud with a total value of approximately €25 million, ensuring customer protection. The Poste Italiane Group has also completed an extensive overhaul plan for the company fleet, reaching 28,400 low-emission vehicles. At the same time, the commitment to the energy efficiency of real estate assets continued, with the installation of photovoltaic systems in the main logistics HUBs in Piacenza and Caserta. Group customers can also rely on an extensive and flexible distribution network, which includes more than 15,700 PuntoPoste pick-up points, in addition to Post Offices, offering efficient alternatives to home delivery. Finally, in the area of sustainable finance, Group companies operating in the financial sector have launched investment funds that promote environmental and social criteria, consolidating Poste Italiane's commitment to creating sustainable value for the community. In this regard, all Poste Vita's investment products in 2024 have an ESG component. In addition, in 2024 BancoPosta Fondi and Poste Vita published, for the second year running, their respective "Statement on the main negative impacts of investment decisions on sustainability factors", also known as the "PAI Statement", providing evidence of the main actions planned by each company to limit the negative impacts on sustainability challenges related to their investments.

The results achieved represent the fruit of a strategic process aimed at creating shared value, through the adoption of a dynamic business model, capable of adapting to the continuous changes in the economic and social context, without ever losing sight of its values and principles. The relationship with all stakeholders is increasingly central, and fostering dialogue allows us to maintain a solid relationship built on trust, based on essential pillars such as transparency and inclusion. This approach enables the Group to address challenges with awareness, capitalise on new opportunities and achieve long-term sustainability. The Poste Italiane Group has always been keen to promote initiatives aimed at listening to stakeholders, with the aim of creating constructive dialogue and sharing strategic objectives. A long-established formula and concrete example is the Multi-stakeholder Forum, now in its eighth edition, which represents a fundamental opportunity for discussion and full sharing of the key objectives of the Group's Sustainability Strategy. As part of the initiative, which was attended by about 1,000 participants, stakeholders took part in the double relevance process, defined by the Group in compliance with the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) in order to identify the ESG information to be included in the Group's Sustainability Reporting 2024, as well as to outline the main sustainability issues that, at a strategic level, can guide our ESG efforts.

We are extremely proud of our achievements, which are the result of our professionalism, determination and ambition, which are the hallmark of our work. The path undertaken is geared towards continuous evolution, with the aim of consolidating the role of the Poste Italiane Group as a point of reference for the community in which it operates. Trust and reputation are fundamental values on which to base a solid future for the benefit of all stakeholders.

A heartfelt thank you goes out to everyone in the Group for their constant support in pursuing all common goals with great dynamism and determination.

Finally, we thank you in advance for your attention to this document, which has been prepared in accordance with the principle of maximum transparency towards all our stakeholders.