Poste Italiane Directors approve five-year strategic plan
The Board of Directors of Poste Italiane have given their approval to the company’s “Deliver 2022” five-year strategic plan.
They approved the plan on Monday (26 February) and it will now be presented to the financial community at Poste Italiane’s first Capital Markets Day, held today at Borsa Italiana in Milan.
The highlights of the plan include the following targets to be achieved by 2022:
- Group Revenue up by 1% CAGR to €11.2bn with improved quality mix
- Operating Profit up by 10% CAGR to €1.8bn, driven by operational efficiency
- Net Profit up by 13% CAGR to €1.2bn
In order to achieve this, Poste Italiane is planning to make a capital expenditure of €2.8bn between 2018 and 2022, which it says will “support digitalization, automation and the reshape of the service model”.
In a statement issued yesterday (27 February), Matteo Del Fante, Chief Executive Officer of Poste Italiane said: “This plan is based on conservative assumptions with a very low execution risk. Revenue will grow steadily throughout the plan, but the real impact will be seen at EBIT and Net Profit levels with an increase of 10 per cent and 13 per cent CAGR respectively with EBIT growth of €0.7 billion. This is thanks to both revenue and operational improvements and most importantly includes contributions from all of our business segments. The dividend will grow over the plan period in line with the improvement of the profitability of the Group. Each of our segments will take many small steps forward which together will make a giant leap for Poste Italiane.
“Deliver 2022 will allow us to fully unlock the value of our unique network and confirm our position as Italy’s most trusted and effective distribution business. We are transforming to seamlessly meet the evolving needs and behaviours of our more than 34 million customers. Mail & Parcel is at the heart of our business and we are already seeing positive results from the actions we have taken, in particular the introduction of our new innovative Joint Delivery Model recently agreed with our unions. We also benefit from owning Italy’s leading financial and insurance digital platforms, creating additional opportunities of cross-selling and enhanced revenues. In addition, we will leverage our 12,800 Post Offices to help bridge the digital divide by selling more online products in-branch thanks to assisted-digital customer journeys. Our people are core to our success and we are proud to be the largest employer in Italy. Over the Deliver 2022 plan period, we will hire around 10,000 skilled professionals, as well as train current staff to provide them with the skills, tools and incentives to help deliver our transformation.”