Annual Report 2009

Transcription

Annual Report 2009

3
Financial and operational highlights
4
Corporate officers
6
Directors’ Report on Operations
8
Gruppo Poste Italiane
Consolidated financial statements 2009
Poste Italiane SpA
Separate financial statements 2009
98
232
4
FINANCIAL AND OPERATIONAL HIGHLIGHTS
Results of operations
2007
2008
2009
15,820
15,907
17,456
(€m)
2009
Revenues and earned premiums
9,841
Poste Italiane SpA
2008
2007
9,826
9,809
of which:
5,537
5,483
5,210
Postal Services
4,709
4,953
5,019
4,500
4,539
4,796
Financial Services
5,039
4,781
4,709
5,541
5,535
7,112
Insurance Services
n/a
n/a
n/a
242
350
338
Other Services
93
92
81
1,777
1,470
1,599
Operating profit
1,399
1,239
1,588
843.6
882.6
904.0
Profit/(Loss) for the year
737
721
704
11.2%
9.2%
9.2%
R.O.S.
14.2%
12.6%
16.2%
2.3%
1.8%
1.8%
2.7%
2.4%
3.1%
63.8%
46.8%
39.8%
38.2%
42.5%
59.0%
(*)
R.O.I.
(**)
R.O.E.(***)
n/a: not applicable
(*)
ROS (Return on Sales) is the ratio of operating profit to revenues and earned premiums.
(**)
ROI (Return on Investment) is the ratio of operating profit to average operating assets.
Operating assets equal assets less investment property and non-current assets held for sale.
(***)
ROE (Return on Equity) is the ratio of profit before tax to equity for the two comparative periods.
Financial position
31 Dec 07 31 Dec 08 31 Dec 09
3,073
3,422
4,575
261
(684)
(1,338)
3,334
2,737
3,237
(€m)
712
Equity
4,077
3,089
Net (funds)/debt
(472)
9
876
Net invested capital
3,605
3,098
3,786
Other information
2007
2008
2009
611
Poste Italiane SpA
31 Dec 09 31 Dec 08 31 Dec 07
2,910
Poste Italiane SpA
2008
2007
(€m)
2009
Investment during the period
471
654
567
capital expenditure
454
636
549
financial investments (equity investments)
17
18
18
148,550
152,311
152,474
513
of which:
608
712
507
3
0.3
6
155,732
152,074
155,734
Average workforce
(*)
Certain amounts for 2008 have been reclassified in order to ensure comparability across the two years.
(*)
The average workforce (shown in full-time equivalent terms) includes the flexible workforce and excludes seconded and suspended staff.
Operational highlights for Poste Italiane SpA
31 Dec 07
31 Dec 08
31 Dec 09
34,741
Operational data (€m)
Current accounts (average for the period)
36,157
33,723
Post Office Savings Books
76,287
81,801
91,120
184,136
185,543
192,618
Interest-bearing Postal Certificates
Other indicators
Number of outstanding current accounts (€000)
Number of Post Offices
Levels of service
Priority mail
Poste Italiane | Annual Report
delivery within 1 day
5,230
5,383
5,526
13,944
13,991
13,992
2007
2008
2009
88.2%
90.6%
90.7%
5
GRUPPO POSTE ITALIANE
Total revenues – Operating segments
2007
32.3%
26.2%
39.3%
2.2%
(€m)
Postal Services
Financial Services
Insurance Services
Other Services
Total
2008
30.8%
25.7%
40.7%
2.7%
2007
5,553
4,505
6,750
379
17,187
2008
5,506
4,595
7,268
484
17,853
2009
26.0%
24.7%
46.7%
2.6%
2009
5,227
4,964
9,376
531
20,098
08 vs 07
-0.8%
2.0%
7.7%
27.7%
3.9%
09 vs 08
-5.1%
8.0%
29.0%
9.7%
12.6%
Revenues, income and earned premiums – Operating segments
2007
35.0%
28.4%
35.0%
1.5%
(€m)
Postal Services
Financial Services
Insurance Services
Other Services
Total
2008
34.5%
28.5%
34.8%
2.2%
2007
5,537
4,500
5,541
242
15,821
2008
5,483
4,539
5,535
350
15,907
2009
29.8%
27.5%
40.7%
1.9%
2009
5,210
4,796
7,112
338
17,456
08 vs 07
-1.0%
0.9%
-0.1%
44.6%
0.5%
09 vs 08
-5.0%
5.7%
28.5%
-3.4%
9.7%
POSTE ITALIANE SPA
Market revenues
2007
45.2%
2.4%
51.6%
0.9%
(€m)
Mail and philately
Express Delivery, Logistics and Parcels
BancoPosta Services
Other Revenues
Total (*)
(*)
2008
44.4%
2.2%
52.4%
1.0%
2007
4,126
218
4,709
81
9,134
2008
4,045
202
4,781
92
9,120
2009
42.1%
1.9%
55.0%
1.0%
2009
3,852
175
5,039
93
9,159
08 vs 07
-2.0%
-7.3%
1.5%
13.6%
-0.2%
09 vs 08
- 4.8%
-13.4%
5.4%
1.1%
0.4%
Market revenues do not include publisher tariff subsidies and Universal Service Obligation (USO) compensation, totalling 682 million euros (706 million euros in 2008)
Corporate
officers
Annual
Report
Board of Directors (1)
Chairman
Deputy Chairman
Chief Executive Officer
and General Manager (2)
Directors
Giovanni Ialongo
Nunzio Guglielmino
Massimo Sarmi
Roberto Colombo
Mauro Michielon
Board of Statutory Auditors (3)
Chairman
Auditors
Alternates
Silvana Amadori
Ernesto Calaprice
Francesco Ruscigno
Valerio Amici
Antonio Musella
Magistrate appointed by the Italian Court
of Auditors to audit Poste Italiane (4)
Bartolomeo Manna
Independent Auditors(5)
PricewaterhouseCoopers SpA
1. The Board of Directors, which was elected by the General Meeting of 29 May 2008,
has a term of office of three years, which will expire on approval of the financial statements
for 2010. The Board of Directors’ meeting of 9 June 2008 elected the Deputy Chairman and Chief Executive Officer (CEO).
2. The appointment as General Manager was approved by the Board of Directors’ meeting of 24 May 2002.
3. The Board of Statutory Auditors was elected by the General Meeting of 14 May 2007 and has a term of office of three years,
wich will expire on approval of the financial statements for 2009.
4. The functions were assigned by the Council of the Presidency of the Court of Auditors,
in its Resolution of 8-9 November 2006, with effect from 1 January 2007.
5. Appointed by the General Meeting of 14 May 2007 for three years.
Director’s Report
on operations 2009
Annual
Report
2009
5
11
1. Corporate governance
2. Organisation
2.1 Organisational structure of Poste Italiane Spa
2.1.1 Private customers
2.1.2 Business customers
2.1.3 Postal services
2.1.4 Other business units
2.1.5 Corporate functions
2.2 Structure of Gruppo Poste Italiane
3. Financial review
3.1 Risk management for the Group and Poste Italiane Spa
3.2 Operating results
3.3 Financial position and cash flow
4. Areas of business
4.1 Postal services
4.1.1 Commercial offering
4.1.2 Operating results
4.2 Financial Services
4.3 Insurance services
4.4 Other services
5. Distribution channels
5.1 Retail/Sme
5.2 Business and Public Sector
5.3 The Contact Center and the Internet
6. Human resources
6.1 Workforce
6.2 Training and Corporate Social Responsibility
6.3 Human resources management
6.4 Industrial relations
6.5 Labour disputes
7. Investment
7.1 Financial Investments
7.2 Capital Expenditure
7.2.1 IT and telecommunications networks
7.2.2 Restyling and upgrade of post offices
7.2.3 Postal logistics
8. The environment
9. Events after 31 December 2009
10. Outlook
11. Other information
12. Board of Directors’ proposals to shareholders
Appendix – Key performance indicators
for principal Gruppo Poste Italiane Companies
Glossary
12
21
21
23
25
25
27
28
28
29
29
33
41
47
48
50
55
58
60
63
65
66
66
67
67
70
73
73
74
74
76
76
78
79
80
81
82
82
82
82
84
84
85
86
87
90
91
92
96
12
1. CORPORATE GOVERNANCE
This section takes the place of the Corporate Governance Report required by art. 123-bis of Legislative Decree
58/1998 (the Consolidated Law on Finance), having regard to the disclosures required by paragraph 2.b1.
Poste Italiane SpA is 65% owned by the Ministry of the Economy and Finance and 35% owned by Cassa Depositi e Prestiti
SpA. General Meetings of shareholders are held periodically to vote on matters reserved by law to shareholders.
The governance model adopted by Poste Italiane SpA is based on the traditional separation of the functions of the Board
of Directors and those of the Board of Statutory Auditors. Responsibility for accounting controls has been assigned to an
auditing firm.
The Board of Directors consists of 5 members and meets once a month to examine and vote on resolutions regarding the
operating performance, the results of operations, proposals relating to the organisational structure and transactions of
strategic importance. The Board met 11 times during 2009.
The Chairman exercises the powers assigned by the Articles of Association and those assigned to him by the Board of
Directors’ meeting of 2 November 2009.
In implementation of the 2008 Budget Law and subsequent additions, the Extraordinary General Meeting of shareholders,
held on 28 September 2009, introduced a number of amendments to the Articles of Association. These included that
“subject to approval of a shareholder resolution regarding delegable powers, the Board of Directors may grant the
Chairman executive powers, establishing the exact scope of such powers and any compensation, pursuant to article 2389,
paragraph three of Italian Civil Code” (art. 19 of Law 102 of 3 August 2009).
The Ordinary General Meeting held on 2 November 2009 thus authorised the Board of Directors to grant executive powers
to the Chairman in respect of the following matters: communication and Government relations, international relations and
legal affairs.
The Deputy Chairman acts for the Chairman in the event of his temporary absence or impediment.
The Chief Executive Officer (CEO) and General Manager, to whom all key departments report, has full powers for the
administration of the Company across the organisational structure, with the exception of powers reserved to the Board of
Directors:
• the issue of bonds and the assumption of medium/long-term borrowings of amounts in excess of 25,000,000 euros,
unless otherwise indicated in specific resolutions passed by the General Meeting or the Board of Directors itself;
• strategic agreements;
• agreements (with ministries, local authorities, etc.) involving commitments in excess of 50,000,000 euros;
• the incorporation of new companies, and the acquisition and disposal of equity holdings;
• changes to the Company’s organisational model;
• the purchase, exchange and disposal of properties with a value of more than 5,000,000 euros;
• the approval of regulations governing supplies, tenders, services and sales;
1. Not having issued shares traded on regulated markets or multilateral trading systems, the Company has elected to take up the option, provided for by
paragraph 5 of art. 123-bis, of not publishing the disclosures referred to in paragraphs 1 and 2, with the exception of those required by paragraph 2.b.
1. Corporate governance 13
• the appointment and termination of the Manager responsible for financial reporting, as proposed by the CEO and with
the prior approval of the Board of Statutory Auditors, including the granting of adequate resources and powers.
The Board of Directors also examines and approves the long-term business plans and annual budgets prepared by the CEO,
approving strategic guidelines and directives for Group companies proposed by the CEO. The Board must approve the
CEO’s proposals regarding the exercise of the Group’s vote at the extraordinary general meetings of subsidiaries and other
investee companies.
The Board of Statutory Auditors has 3 active members appointed by the General Meeting. Pursuant to art. 2403 of the
Italian Civil Code, the Board verifies compliance with the law, the articles of association and with correct corporate
governance principles, also verifying the adequacy of the organisational structure and administrative and accounting
systems adopted by the Company and their functionality. The Board met 22 times during 2009.
The General Meeting appoints a registered auditing firm to audit the Group’s accounts, as required by art. 2409-ter of the
Italian Civil Code. The appointed firm must also be enrolled on the Register held by the CONSOB. The engagement is for
a three-year term and the current contract is due to expire on approval of the financial statements for 2009.
The accounts of Poste Italiane’s larger subsidiaries are audited by an independent firm of auditors (wherever possible, the
same firm as the one used by the Parent Company), whilst audit procedures at smaller subsidiaries are the responsibility
of their boards of statutory auditors.
On 22 January 2010 the Italian Cabinet approved measures (a legislative decree) implementing EU Directive 2006/43/EC,
which governs the statutory audits of annual and consolidated accounts, whilst awaiting publication in the Official Gazette.
In accordance with this legislation, Poste Italiane qualifies as an “Entity of Public Interest”.
The Board of Directors has established a Remuneration Committee, which is responsible for making proposals to the Board
regarding the remuneration of executive directors.
In accordance with Law 259 of 21 March 1958, which requires parliamentary scrutiny of the financial management of
agencies to which the State contributes on an ordinary basis, Poste Italiane SpA is subject to controls by the Italian Court
of Auditors, which examines its budget and financial management. The controls consist in ascertaining the legitimacy and
regularity of management activities, as well as of the operation of internal controls.
Internal control system
Poste Italiane SpA’s internal control system consists of a systematic body of rules, procedures and organisational
structures, which aim to prevent or limit the consequences of unexpected events and enable the Company to achieve its
strategic and operating objectives, comply with the relevant laws and regulations and ensure the fairness and transparency
of internal and external reporting.
In this context, the Internal Auditing department assists the organisation in the pursuit of its business and governance
goals, supporting executives and management through its independent and objective professional contribution. The
department is responsible for monitoring and making improvements to the Company’s control and risk management
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processes and its corporate governance. The Board of Directors’ meeting of 27 April 2009 approved an updated role for
the Internal Auditing department. The scope of the Internal Auditing department’s work has progressively expanded to
include all of Poste Italiane's principal processes (as determined through risk analysis), thus assuring assessment of the
adequacy of the design and functioning of the internal control system on the basis of an integrated approach in support of,
among others, the Manager responsible for financial reporting appointed in accordance with Law 262/05 (as described in
greater detail below) and the Audit Plans drawn up by the Supervisory Board. Audits were conducted in 2009 with the
objective of facilitating the generation of synergies with respect to the approaches of various areas of operation for the
adoption of organisational and technological solutions in continual improvement of operating efficiency, and to bolster the
governance system of the Company’s and the Group’s processes. Annual planning focused on broad-based, organisationwide processes for the improvement of key business processes with respect to both operations and control.
Another of the Internal Auditing department's objectives was the full evaluation of second-level internal controls carried out
by both management as well as specific specialist corporate functions (e.g., Management Control, Security), in order to
integrate findings and provide an overall assessment of internal control systems.
In order to incorporate changes in legislation and risks into the model pursuant to Legislative Decree 231/01, the Board of
Directors approved an Organisational Model for Poste Italiane SpA at its meeting of 22 February 2010 that replaced the
model previously approved by the Board of Directors on 23 March 2009. The Company also renewed the Supervisory Board
set up in response to the legislation, following expiry of the term of office of the previous Supervisory Board. It appointed
three members with proven experience who satisfy the requirements for Board Directors in respect of integrity,
professionalism and independence. Poste Italiane SpA's direct subsidiaries have also adopted their own Organisational
Models for the purposes of Legislative Decree 231/01, which is monitored by the Supervisory Boards appointed by the
subsidiaries. Finally, at its meeting of 28 September 2009, the Board of Directors approved a Group Suppliers and Partners
Code of Conduct complementing the Group's Code of Ethics.
The existing risk management and control system for financial reporting pursuant to art.
123 bis, paragraph 2, letter b of the Consolidated Law on Finance.
Consistent with standard "COSO”2 methodology as adopted by Poste Italiane, the risk management and internal control
systems relating to financial reporting3 are an integral part of the system described above for all of those components that,
with reasonable certainty, assure the reliability, accuracy and timeliness of financial reporting. The qualities of these
systems (the "System"), however, are not treated as separate elements but rather as parts of a whole.
Further to the information provided above on the Company, the identity of Poste Italiane’s shareholders, the model of
corporate governance and the resultant implications, such as being audited by the Court of Auditors, it should be noted
that the Group operates in multiple sectors (postal services, banking, insurance and telecommunications), each of which
is subject to specific supervisory and regulatory regimes as implemented by the respective regulators (including the
2. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) defines the system of internal control “as a process, effected by an
entity’s board of directors, management and other personnel, designed to provide "reasonable assurance" regarding the achievement of objectives in the
following categories: effectiveness and efficiency of operations; reliability of financial reporting; and, compliance with applicable laws and regulations”.
3. Financial reporting means all accounting information and data appearing in the annual separate and consolidated financial statements, the half-year
condensed financial statements and all other information relating to the results of operations, financial position and cash flows released to the public, which
has been extracted from ledgers and accounting records.
CONSOB, the Bank of Italy and ISVAP). In addition, Poste Italiane's operating structure is basically characterised by the
existence of multiple corporate functions and Group companies, engaged in product development, and a widespread,
capillary network throughout Italy. Public Sector entities form a significant customer segment.
As a result, Poste Italiane's financial reporting reflects the size of its business, involving a high number of transactions that
are largely executed by employees spread across Italy, who input accounting data through information systems that
automatically validate input primarily with respect to certain major contracts and agreements, rates or investment yields on
government securities.
Protagonists, roles and responsibilities
In addition to corporate bodies and internal auditing and control functions (described above), the Manager responsible for
financial reporting, appointed pursuant to Law 262/054 by the Board of Directors, and who is also the Chief Financial Officer,
is responsible for the establishment of administrative and accounting procedures and, together with the CEO, certifies their
effectiveness and functionality, in addition to the accuracy and correctness of the financial reports which he oversees. The
position has also been created for those subsidiaries, which contribute a significant share of the Group's consolidated net
assets, income and cash flows5.
Furthermore, a number of Poste Italiane's corporate functions are involved in different aspects of the system of internal
control, with varying roles and responsibilities depending on their classification into three levels, which is also reflected in
the structure of monitoring activities described below:
Line or first-level controls
Poste Italiane's corporate functions are each responsible for the System's application, thus assuring the execution of line
or first-level controls as required by the previously cited administrative and accounting procedures. The Head of the Chief
Information Office plays a role of prime importance in this connection, since he is responsible for the IT systems that
support financial reporting and is required, at least once a year, to provide the Manager responsible for financial reporting
with an attestation regarding the reliability of the system of internal controls as regards information office;
Second-level controls
The Poste Italiane functions responsible for risk management and control, in addition to determining the method for the
recognition and measurement of risk consistent with corporate objectives, report their findings to the Manager responsible
for financial reporting, in accordance with mutually agreed procedures and timing. The main functions are:
• Corporate Protection Risk Analysis and Evaluation, which, among other things, supports Group Management with
respect to operational risk analysis, assessment and management;
• Risk Management, which, with respect to Poste Italiane's financial risks and BancoPosta's management and operational
risks, is, among other things, responsible for the development of assessment and measurement techniques for these
types of risks, in addition to recommending action plans for their mitigation;
4. Poste Italiane has been classified, pursuant to Legislative Decree 195/2007, as a listed issuer registered in Italy, since 1 January 2008. Consequently, the
Company is subject, where applicable, to Legislative Decree 58/1998 (the Consolidated Law on Finance), particularly with respect to articles 154-bis and
154-ter, as amended by the aforementioned Legislative Decree 195/2007, regarding financial reporting. Therefore, the position of Poste Italiane's Manager
responsible for financial reporting, introduced in 2007 with an amendment to the Articles of Association reflecting a voluntary decision made by the
shareholders, has become a legal obligation. This has entailed the assignment of additional duties and responsibilities, thereby modifying the process of
adaptation undertaken by the Company since the Manager's appointment. These modifications were approved by the Board of Directors on the
recommendation of the CEO, following mandatory consultation with the Board of Statutory Auditors.
5. Poste Vita, SDA Express Courier and Postel.
16
• Compliance, which, among other things, assures the effective identification and assessment of the risk of BancoPosta's
non-compliance with regulatory requirements and works together with the relevant units to determine the action required
to mitigate these risks;
Third level controls
• Internal Control/Internal Auditing reports to the CEO with a functional reporting line, through the Chairman, to the Board
of Directors. It supports the Manager responsible for financial reporting through continual quality assurance of the design
and functioning of controls over accounting procedures that form the basis of financial reporting. Given the department’s
organisational independence and autonomy, it is in a position to evaluate the adequacy of the design and effective
application of administrative-accounting control procedures. Its work is based on an audit plan that covers existing
procedures, in addition to incorporating any audit tests specifically requested by the Manager responsible for financial
reporting, with whom methods and audit criteria are agreed. Audit findings are promptly reported to the Manager
responsible for financial reporting in an agreed manner and format and are reported at least every six months to the Board
of Directors through the Chairman;
• BancoPosta's Internal Auditors coordinate their activities with Internal Control/Internal Auditing to assure adequate
periodic reports to the Manager responsible for financial reporting on the evaluation of the functionality of all systems of
internal control for which they are responsible.
Finally, Group Companies have established and maintain their own systems of internal control over financial reporting, the
effective application of which is assured by certain of those companies through a manager responsible for financial
reporting. Each company specifically assures the correctness of financial information and the reliability of any additional
information for annual and interim consolidated financial statements and the report on operations. Certain of the companies
also have Auditing, Risk Management and Compliance units similar to those of the Parent Company, thus replicating the
same internal control structure.
Principal characteristics of the Poste Italiane System
Generally the System embodies "cross-functional" components across Company and/or Group processes and operations
(job descriptions, powers and delegations, etc.) and the individual processes used for financial reporting. In accordance with
the principles adopted by Poste Italiane, the System consists of the following components: Control Environment, Risks and
Control Activities, Information and Communication and Monitoring.
Control environment: the general environment in which Poste Italiane's staff perform their duties. It encompasses
integrity and other of Poste Italiane's ethical values, its organisational structure, system of attributing and exercising
authorities and responsibilities, the segregation of duties, staff management and incentive policies, personnel competence
and, more in general, its Corporate "culture". Other factors characterising the control environment at Poste Italiane, which
are of particular importance for the internal control system applied to financial reporting, are primarily:
• Organisational Models pursuant to Legislative Decree 231/01 described above and the relevant corporate procedures.
One of the internal controls foreseen by legislation is the segregation of duties, which is applied in accordance with the
importance and nature of the relevant activity in order to avoid organisational over-concentration of powers and the need
for additional controls, even after taking the geographical dispersion of activities throughout Italy into account. The
segregation of duties is of fundamental importance for certain activities, regardless of their effects on financial reporting,
for the safeguarding of assets and, in general, fraud prevention;
• the Group's Code of Ethics, as supplemented by the Group Suppliers and Partners Code of Conduct, which protect Poste
Italiane against litigation and court orders arising from breaches of trust;
• the organisational structure of Poste Italiane and Group companies as reflected in organisational charts, service orders,
organisational notices and procedures, which determine the duties and responsibilities of corporate functions;
• the system for delegating powers, which entails the delegation of powers to the heads of the various functions with
respect to their activities, by the granting of special powers of attorney to specific persons;
• the Group's Interrelations Map, which incorporates a system of behavioural and technical rules guaranteeing the
standard application of corporate governance through coordination of decision-making processes regarding aspects,
issues and activities of strategic interest and/or importance, or whose impact may involve significant financial risks for
the Group;
In addition to the above, and of a more general nature, an in-house set of standards and principles has been developed for
the regulation and implementation of the position of the Manager responsible for financial reporting. Specifically:
• Guidelines for the Manager responsible for financial reporting, as reported to the Board of Directors, which determine
the powers, resources, duties and relationship of the Manager with corporate and control bodies, corporate functions and
Group companies, in compliance with the Articles of Association. The Guidelines are consistent with the standards of the
Italian association of chief executive and financial officers (Associazione nazionale direttori amministrativi e finanziari or
"ANDAF"). The Guidelines require that the Manager responsible for financial reporting be selected from among the
Company’s managers and have senior management responsibilities. The Manager must have direct responsibility for
administrative, accounting, tax and management control units. The Manager’s appointment may only be revoked for due
cause. Finally, the Manager must be given full and unfettered access to all corporate information deemed relevant for the
pursuit of his duties;
• the Financial Reporting Model of Governance and Control (the "Model") issued by the Manager responsible for financial
reporting, together with the head of Human Resources and Organisation, which sets out the method of coordination,
within the Group, of processing, preparing and controlling accounting records, in addition to the principles applied by
Poste Italiane for the establishment and maintenance of suitable internal controls over financial reporting. The Model
incorporates the “COSO Report” recommended by Confidustria in the guidelines for the duties of the Manager for
financial reporting, pursuant to art. 154 bis of the Consolidated Law on Finance and by ANDAF in a position paper on the
manager responsible for financial reporting, entitled "Il Dirigente Preposto alla redazione dei documenti contabili e
societari”. As required by the Model, the Manager has developed and distributed "Procedural and Operational Guidelines"
throughout the Group, describing the analytical criteria, operational procedures and a selection of instruments to be used
in one way or the other by the functions and personnel involved in the implementation, verification and revision of the
System. The objective of the document is to provide guidance on the practical implementation of the methodological
principles adopted.
The Manager responsible for financial reporting has developed procedures based on these principles that regulate Poste
Italiane's administrative and accounting processes and the related controls described below.
Finally, the Chief Financial Officer (the Manager responsible for financial reporting) is invited to attend meetings of the
18
Board of Statutory Auditors and is a member of the Supervisory Board's Technical Secretariat, thus assuring a reciprocal
and effective exchange of information. He is also a member of the Finance Committee and chairs the Financial Risk
Committee.
The Finance Committee has a consultative function and provides strategic guidance to and supervision of Poste Italiane
and the Group in addition to the development of "Operational Guidelines for Financial Management" for approval by the
Board of Directors, whereas the Financial Risk Committee assesses and monitors the Group's overall exposure to financial
risks, and verifies compliance with the Operational Guidelines for Financial Management.
Risk and control: Poste Italiane identifies and analyses risk through a structured process, which is implemented and
supported by various corporate functions that are strictly complementary to each other. A detailed description of risk
management is contained in the section "Risk Management for the Group and Poste Italiane SpA" and note 3 of both the
separate and consolidated financial statements for financial risks in the strictest sense of the term (credit, interest rate,
liquidity and counterparty risk, etc.). It should be noted, in that connection, that Poste Italiane uses certain consolidation
methods that permit the integrated and synergistic assessment and management, at Group level, of the principal risks
inherent in its business processes. As explained above with respect to Corporate Protection Risk Analysis and Evaluation
and BancoPosta Risk Management, corporate functions complement each other with respect to support for other
corporate functions and Group companies, in as far as operational risk analysis, assessment and management is
concerned. The method used is based on Management's risk control self-assessment. BancoPosta's Risk Management
uses that method, which was developed through the dissemination of specific models and guidelines, for assuring
compliance with regulatory requirements for the providers of banking services. BancoPosta also has a specific
organisational unit for the establishment and revision of a procedural system consistent with its sector's relevant regulatory
requirements.
Poste Italiane also has specific organisational units to assure its assets and data are safeguarded. Their work in this
connection entails both the detection of internal and external (e.g., theft) criminal acts, preventative measures, the
development of policy and procedures and the analysis of potential vulnerability and critical events, above all in connection
with data protection.
The assessment of the risk of errors in financial reporting is carried out in connection with the development of
administrative and accounting procedures. The documents are issued by the Manager responsible for financial reporting in
conjunction with Human Resources and Organisation and regulate, among other things, line (first-level) accounting controls
of the various corporate functions involved in the preparation of financial statements. The purposes of these procedures
are, particularly, to:
• regulate administrative and accounting aspects of the relevant processes, through identification of the roles and
responsibilities of the functions involved, by defining and describing their activities, the information systems used and
the controls required to reasonably assure the correctness and reliability of financial reporting;
• provide a method for monitoring by the process owner and independent verification.
The Manager responsible for financial reporting has commenced a rationalisation of these procedures in order to sharpen
their focus on controls over certain objectives (the so-called "assertions" of financial statements)6. The phases of the
rationalisation are:
• the identification or updating, starting from the general ledger accounts and the component captions of the financial
statements, of the various processes that, directly or indirectly, relate to the elaboration and preparation of financial
reports, by mapping the processes in decreasing order of relevance with respect to quantitative (effect on the income
statement and/or financial position and cash flows) and qualitative factors;
• the identification or updating, for each process identified, of activities and inter-related administrative-accounting controls
with respect to the above-mentioned assertions of financial statements inherent in these processes, which are then
formalised as a specific procedure and control. Controls intended to prevent irregularities that can cause errors in financial
reporting are then classified as "preventative"; those intended to identify irregularities that have already occurred are
"subsequent". A distinction is also made between "manual" and, for those controls made by information systems used for
the processes, "automated";
• the assessment, which is conducted at the same time as the previous phase, of the effectiveness of existing controls in
the mitigation of the inherent underlying risk of error, which is the inability to achieve one or more assertions of financial
statements. In the event that existing controls are found to be inadequate, other so-called "actual" controls are specifically
designated to assure the overall adequacy and effectiveness of the system of internal control over the process;
• the documentation, for each procedure, of the analysis conducted for the identification and assessment of risks is
prepared in the form of a matrix showing how risks and controls are related (the risk-control matrix). The risks are then
assessed in terms of their potential effect and probability of occurrence, as shown by quantitative and qualitative
variables, on the assumption of no controls;
• the verification of the effectiveness and testing of controls by the independent Internal Control/Internal Auditing
department, as a part of its annual audit plan, or by the System of Accounting Controls function that reports to the
Manager responsible for financial reporting;
• periodic reports to the Board of Directors on the state of the System and any planned revisions, including progress on
the remedy of areas requiring improvement, at the time resolutions approving draft separate and consolidated annual
financial statements and half-year condensed consolidated financial statements are deliberated.
The current status of the project is that certain administrative-accounting processes have been identified as important and
are currently being tested. As a result of the volume and complexity of underlying factors, certain of the processes are still
being finalised. The managers responsible for financial reporting appointed at more important Group companies have also
started the same project as the Parent Company, for the revision of controls using the methods advised by the Parent. At
the end of each annual and half-year reporting period, each of these Group company managers responsible for financial
6. Existence: the assets and liabilities of the enterprise actually exist and the postings to accounts represent actual occurrences;
Completeness: all transactions have been recorded in the financial statements;
Claims and Obligations: the assets and liabilities of an enterprise represent the company's claims and obligations;
Measurement/Recognition: measurement means that items have been recorded in the financial statements in compliance with the relevant accounting
standards (IAS/IFRS) applied in an appropriate and pertinent manner; recognition means that value of transactions is correctly computed, accurately
recorded, posted to the ledgers and documented;
Presentation and Disclosure: financial statement items are correctly designated, classified and described and, where applicable, analysed and commented on
in the notes and are released together with the most recent information needed for a complete representation of the company's earnings and net assets.
20
reporting issues a certificate jointly signed by the company's CEO and with the same wording as the Parent Company's,
as required by the CONSOB.
Compliance with ongoing changes in tax rules and accounting standards is provided by specific technical units under
Accountancy and Control. Poste Italiane also participates in technical round-table discussions held by major sector
associations and professional bodies on administration, taxation accounting and internal control over financial reporting.
There is also a system of in-house certification by Poste Italiane's Chief Financial Officer (the Manager Responsible), which
serves as a basis for certificates relating to various aspects of financial reporting. The certificates are issued by the heads
of corporate functions and attest to, among other things, the correctness and completeness of accounting records and
related reports, in addition to compliance with relevant administrative and accounting procedures. Analogous certificates
are also issued by the Group's senior management.
Information and communication: Poste Italiane's information flows are supported by information systems that, among
other things, collate, classify and record transactions for the purposes of processing as well as preparing and controlling
financial reporting. The IT internal control system is based on COBIT methodology7 and covers infrastructure and
transversal processes that are typically the responsibility of the Chief Information Office 8 (the so-called COBIT) and the socalled Application Controls over processes that support business. IT Company Level Controls and IT General Controls relate
to the processes of development and maintenance planning for hardware and software, the determination of the
organisational structure of dedicated units, the acquisition and implementation of IT resources, the provision of services
and assistance to users, the monitoring and assessment of objectives.
Finally, Monitoring is conducted at various levels that are a function of the roles and responsibilities described above. The
Company's earnings and cash flows are also continually monitored through management reports that, as a result of the
organisational structure of the Company, are made by the Accountancy and Control function and other corporate functions
through their own accountancy and control units.
7. COBIT (Control Objectives for Information and Related Technology) is a set of best practices (framework) for information office management created by
the American ISACA (Information Systems Audit and Control Association) and ITGI (IT Governance Institute) to provide an internationally generally accepted
measures for the assessment and improvement a company's IT governance and control.
8. IT systems relating to human resources are under the direct control of Human Resources and Organisation.
1. Corporate governance | 2. Organisation 21
2. ORGANISATION
2.1 ORGANISATIONAL STRUCTURE OF POSTE ITALIANE SPA
Poste Italiane SpA’s organisation breaks down into the following business and corporate functions:
Business functions
Postal Services
Express and Parcels
Philately
BancoPosta
Private Customer
Business Customer
Corporate functions
Purchasing
Public Affairs
Legal Affairs
Corporate Affairs
Accountancy and Control
External Relations
Internal Auditing
Finance
Real Estate
Strategic Planning
Human Resources and Organisation
Chief Information Office
Security & Safety
Postal Services, BancoPosta, Express and Parcels, and Philately are responsible for developing the related products and
services and managing a part of the operations involved in their supply.
22
Postal Services is also responsible for planning and managing the logistics process, and for the provision of new integrated
mail services.
Private Customer and Business Customer are the commercial channels responsible for developing and managing frontline
commercial activities for all customer segments. The Private Customer function is also responsible for the activities of the
contact centre.
Corporate functions are central departments that manage, control and provide business support services.
The Company’s organisational model was modified during 2009, with the aim of simplifying the organisational structure,
maximising efficiency and making further progress with regard to speeding up processes. This involved laying the
foundations for a gradual, marked differentiation of management and strategic control processes (Corporate in the true
sense), business processes and support processes (shared services and the competence centre).
With regard to simplification and maximising efficiency, the following developments took place:
• the departments responsible for Accountancy and Control for the External Relations, Chief Information Office, Internal
Auditing, Security & Safety, Real Estate, Philately and Express and Parcels functions were centralised within Corporate
Accountancy and Control, with the aim of obtaining economies of scale and increased specialization, based around
shared services and skills teams;
• the start of a rationalisation process for Corporate functions;
• elimination of the Customer Services and Quality function, with the related activities and staff being transferred to the
Private Customer and Strategic Planning functions; this decision, on the one hand, meets the need to adopt an integrated
approach via organisational solutions that enable the end-to-end management of pre-sales, sales and after-sales
processes, whilst, on the other, strengthening the role of Quality as a highly specialised competence centre, engaged
exclusively in guiding and managing the Group’s quality system;
• alterations to the geographical structure of the Private Customer function, introduced partly following the union
agreement of 16 July 2009, which led to radical changes in the organizational model in order to boost efficiency and
growth. Key aspects of the agreement included the geographical reorganisation of branch offices and the restructuring
of after-sales and competence centre activities with a view to centralising the related processes.
The process, launched last year, of creating specialist distribution channels, with the aim of achieving a better match
between the service offering and the related customer segments, was continued and developed. This involved the
following changes to the distribution model:
• the transfer of responsibility for managing the Large Account customer segment from the Private Customer to the
Business Customer function, and the division of responsibility for local government customers between the two
functions based on size and the primary customer needs;
• redesign of the model for managing business customers within the Private Customer function, through a wide-ranging
reorganisation of sales and support activities, involving the switch from a “size-based” approach to one based on
selective differentiation by economic sector and separate accounts for high spending customers and the local
government customers served by this function. This approach led to an organisational review at both central and local
level, the most important results of which were the reinforcement of PosteBusiness offices as the sole channel to be
used for this type of customer.
Further initiatives involved:
• the reorganisation of External Relations and Public Affairs, involving the creation of two first-line functions, “Public
Affairs” and “External Relations”, with the aim of achieving more effective (in the sense of more specific and focused)
management of relations with Government and public bodies and of external communications processes;
• the establishment, within BancoPosta, of the “Process and Procedure Regulation” function to oversee regulatory
compliance and apply the guidelines set out by the industry regulator in relation to the application of operating models
specifically applicable to the banking sector, where the basis of an effective control system rests on prompt and organic
management of the internal processes and procedures involved in providing the products and services marketed to
2. Organisation 23
customers. This function has also been given responsibility for managing complaints about financial products and
services;
• the establishment, within the department responsible for Safety & Security, of the Security Room with the aim of
strengthening the Company’s security system and ensuring appropriate levels of prevention and management of risks,
unusual events and emergencies;
• reconfiguration of the Innovation and Project Management Committee, aimed at muting the need to ensure ongoing
coordination and monitoring of innovative and strategic initiatives and projects.
2.1.1 PRIVATE CUSTOMERS
The Private Customer function manages the commercial front end for all market segments: Retail, SME (SOHO-Small
Office/Home Office and SMB-Small to Medium Businesses) and Medium Enterprises.
As shown in the table below, the organisation of the commercial network and related operational support processes breaks
down into three levels:
• Multi-regional Area Offices (referred to as Private Customer Area Offices);
• Branch Offices;
• Post offices, which from a commercial point of view are classified as central, transit, relations, standard, service or
support offices.
31 Dec 2008
Number
Private Customer Area Offices
Branch Offices
Post offices
Workforce
31 Dec 2009
Number
Workforce
9
3,271
9
2,851
140
5,149
132
4,834
13,991
59,359
13,992
58,651
All workforce data is shown in full-time equivalent terms.
As already mentioned, 2009 saw the launch of a reorganisation designed to achieve increased integration of ancillary,
support and other shared processes, with the aim of boosting the efficiency and effectiveness of processes and
implementing growth strategies based on service quality and value for money.
This involved:
• the centralisation of administrative activities, which are now handled by 27 administrative Competence Centres as
opposed to 53 Accounting Centres, with the aim of improving process performance and the quality of accounting
information. Management control activities are also being re-engineered, with centralisation of the tasks carried out at
branch offices at 35 specialist centres;
• redesign of the after-sales organisational model with the establishment, in 9 regional areas, of complaints management
departments, offering greater assistance to post offices and improving the quality of service for customers;
• the geographical organisation of Branch offices was modified, involving a reduction in the number of such offices from
sixteen to eight, with a view to boosting operating efficiency and providing coverage on a “provincial” basis;
• the Customer Service and Quality function was transferred to the Private Customer function, together with responsibility
for the Contact Centre, which employs approximately 1,300 people;
• staff turnover at post offices, which in 2010 will see an increase in counter staff, by using the internal Job Posting
selection system (defined under the union agreement of 13 February 2008).
24
RETAIL
As well as comprising the main sales channel for postal and financial products and services to retail customers, in small
communities post offices are also points of reference for social purposes and public services.
Via its network of post offices, the Company also provides a wide range of services to the public on behalf of the Public
Sector, including the digitalisation of processes and as a partner for the outsourcing of certain administrative procedures.
This form of social support witnessed significant growth in 2009, with an increased number of services provided to both
central and local government.
Back-office activities are partly carried out at post offices, and partly at 15 specialist service centres (Centralised Service
Teams) spread around the country. These centres, which have been created with the goal of streamlining, standardising
and speeding up after-sales activities for financial services, also deal with opening current accounts and ancillary services,
loan and mortgage approval processes and certain after-sales activities.
The above Teams carry out these activities for both retail and business customers (SMEs and Medium Enterprises).
In order to improve service quality at post offices and develop the network’s commercial potential, by differentiating service
provision activities from those linked to higher value added operations, special “Financial Products” and “PosteBusiness”
areas have been created. These spaces are used exclusively to offer the latest in financial products and services aimed at
Retail and SMB customers.
At 31 December 2009, the number of “Financial Products” areas, managed via a highly advanced reporting system,
designed to promptly monitor commercial performance, amounted to 4,750.
Finally, during the year the organisational model for Branch and Area Office commercial departments was also revisited, in
order to provide more effective customer relationship management and front-end support. This involved changes to the
model for managing commercial channels and segments, and improvements to the system for disseminating commercial
policies to post office staff.
SMB/MEDIUM ENTERPRISE
The model for managing the SMB segment is being revisited and all SMB and business customers allocated to the Private
Customer function have been included in a single customer category, named “Corporate”9. As a result, the current
business sales network will gradually be restructured. Until the previous year, SMB customers were handled by the
PosteBusiness channel, which, with around 1,150 outlets, including PosteBusiness Offices10, Specialist Areas11 and
Specialist Counters12, offers numerous integrated products and services alongside more traditional services. During 2009
the channel was radically restructured, with the aim of increasing the degree of specialisation within the PosteBusiness
network. This was done by concentrating all SMB customers at around 500 physical locations (including Offices and
Specialist Areas). At the same time, the initiative will involve the gradual conversion of the specialist counters to traditional
services.
9. The “Corporate” segment also includes some local government customers.
10. Offices exclusively dedicated to customers from this segment, either located within central post offices or on a stand-alone basis.
11. PosteBusiness sales areas and counters located in traditional post offices.
12. PosteBusiness counters located in traditional post offices.
2. Organisation 25
Geographical distribution of post offices
and branches
Geographical distribution of Area Offices
360
2
372
4
1
1,118
8
1,480 12
984
10
5
475
5
1,030 11
541
4
174
2
2,009 19
71
471
291
2
459
4
856
Lombardy Area Office
based in Milan
North West
Area Office:
Piedmont
Aosta Valley
Liguria
Central Area Office 1
based in Florence:
Tuscany
Umbria
9
494
5
1,051 9
189
2
711
6
856
12
Central Area Office
based in Rome:
Lazio
Sardinia
Abruzzo
Southern Area Office 2
based in Palermo:
Sicily
Post offices
Branches
North Eastern Area O.
based in Venice:
Veneto
Trentino Alto Adige
Friuli Venezia Giulia
North Central Area O.
based in Bologna:
Emilia Romagna
Marche
Suothern Area Office 1
based in Bari:
Puglia
Molise
Basilicata
Southern Area O.
based in Naples:
Campania
Calabria
2.1.2 BUSINESS CUSTOMERS
The Business Customer function is responsible for Large Company, central government and some local government
customers. As mentioned above, with the aim of better tailoring the offering to the needs of the different customer
segments, in 2009 the Group revised the criteria for assigning responsibility for the various segments, giving the Business
Customer function (renamed the Large Company and Public Sector function in early 2010) direct responsibility for all
customers in the above categories, resulting in the transfer of activities and staff from the Private Customer function.
On this basis, the organisational and operating model is being altered in order to achieve the main aim of maximising
revenue growth, via a reorganisation of the sale force and support activities.
2.1.3 POSTAL SERVICES
The Postal Services department is responsible for planning and managing the logistics process13, providing innovative and
integrated services and developing and managing the mail services portfolio by identifying new business opportunities, as
well as planning, creating and launching new products and services.
The logistics network is organised on two levels, the first of which deals with coordination and is represented by Area
Logistics Offices responsible for one or more regions, whilst the second is operational and includes sorting centres
(mechanical and manual) and urban and provincial Delivery Offices.
The Area Logistics Offices coordinate and support the smooth running of logistics within their related areas, where sorting
centres are located. Moreover, the network of mail sorting centres is a dynamic and evolving structure, in terms of number
and geographical distribution, aimed at adapting to customer requirements and thereby guaranteeing improved quality for
postal services as well as provision of new services.
13. Logistics management covers the entire process of collection, transport, sorting and delivery of postal products.
26
The Sorting Centres (SC) collect, transport and sort bulk, business, priority and registered mail, using highly automated
equipment. One of these centres, the International Sorting Centre in Milan, specialises in handling mail from and to
overseas.
The current structure of the logistics network revolves around two types of hub: Priority Centres (PC)14 and Delivery
Logistics Centres (DLC)15.
These centres mark the next step in the evolution of Operating Postal Centres (OPC), which corresponds to the planned
rationalisation of the allocation of logistics and operating activities within the areas served by the Sorting Centres, with the
transfer of sorting activities from peripheral hubs to the Sorting Centre itself (Area Sorting Centres).
31 Dec 2008
31 Dec 2009
Number
Workforce
Number
11
1,695
11
1,686
Sorting Centres
23
11,623
22
11,479
Priority Centres
41
3,347
35
2,943
Area Logistics Offices
(*)
Delivery Logistics Centres
Delivery Offices
(**)
Workforce
35
1,426
42
1,611
4,103
50,641
3,870
50,027
All workforce data is shown in full-time equivalent terms.
(*)
At 31 December 2009 the geographical distribution is as follows: Piedmont, Aosta Valley and Liguria; Lombardy; Veneto, Trentino Alto Adige and Friuli
Venezia Giulia; Emilia Romagna and Marche; Tuscany and Umbria; Lazio, Abruzzo and Molise; Sardinia; Campania; Puglia and Basilicata; Calabria; Sicily.
(**)
Delivery staff include 42,855 letter carriers and letter carrier supervisors (43,654 at 31 December 2008).
Remaining with delivery, the mail delivery innovation project continued, with the start up, as of 31 December 2009, of 853
out of the 932 Distribution Centres envisaged by the project as a whole, in accordance with the guidelines for the new
operating model.
Rollout of the “Electronic Postman” project, launched in 2008 with the aim of computerising operating processes and
preparing a technology platform capable of supporting new business services, was completed in provincial capitals. This
initiative has involved approximately 12,000 delivery staff at 241 Distribution Centres.
The year also witnessed the launch of the project that envisages the transfer of the activities involved in the delivery of
registered mail not delivered during normal delivery rounds, due to temporary unavailability of the addressee (so-called
“undelivered mail”), to Distribution Centres located close to the area served by the corresponding post offices. This project
has currently been implemented at 95 Distribution Centres.
The delivery of legal process in the municipalities of Milan and Reggio Emilia also began, with the appointment of around
100 staff as process agents, in addition to preparations for the launch of this service in 68 provinces in connection with the
Equitalia contract.
The Postal Services function also designs the service model for and coordinates eleven Service Centres, nine of which
provide integrated mail services (including the Integrated Notification Service and the Regularisation of Immigrant
Workers), and two Electronic Communication Service Centres, which primarily manage operations relating to a number of
online mail services. During the year, management of this business segment was strengthened via operating units called
Area Notification Centres, located around the country. Based on a multi-service platform, these centres offer value added
services to businesses and Public Sector customers.
14. Logistics hubs acting as collection and transit points for the transport and sorting or mail for next-day delivery (Priority and Raccomandata1 registered mail)
originating out of area (Incoming Mail Centres for out-of-area post) and for delivery in the area of responsibility (the city and province in which the Priority
Centre is located).
15. Logistics hubs that act solely as collection and transit points for transport.
2. Organisation 27
Distribution of Area Logistics Offices
Distribution of Postal Network
SC
Piedmont – Aosta Valley – Liguria
Lombardy
(* )
OPC
DLC
3
4
4
4
1
8
Triveneto
3
5
5
Emilia Romagna – Marche
2
2
9
Tuscany – Umbria
2
5
3
2
8
3
1
1
3
2
Lazio
(** )
– Abruzzo – Molise
Campania
Puglia – Basilicata
1
2
Calabria
1
2
-
Sicily
2
3
4
Sardinia
Total
1
2
1
22
35
42
( *)
Including the International Exchange Centre.
(** )
Operating Postal Centres include the Printing Centre
at Rome Romanina.
The transport network uses both proprietary and leased vehicles operated by the Company, whilst the subsidiaries, Mistral
Air SpA and Poste Italiane Trasporti SpA, provide air and land transportation, respectively.
Finally, in order to bring the activities involved in analysing and developing the international postal business under one roof,
the International Operations function has been created, with responsibility for development of the postal business through
agreements with other providers, and for coordinating the logistical, accounting and quality control processes involved in
international mail services.
2.1.4 OTHER BUSINESS FUNCTIONS
The BancoPosta, Express and Parcels, and Philately functions are centralised departments which – both directly and via a
number of Group companies that report to them – create, design and manage the Group’s ranges of postal products and
services, financial services, express delivery and parcel services, and philatelic products. These functions also carry out certain
operations involved in their areas of business at facilities located around the country, as shown below.
BancoPosta operates:
• four Unified Service Automation Centres, where the bills paid at post offices are sent and processed;
• two Cheque Centres for the processing of cleared cheques.
The Express and Parcels function operates two international gateways that enable the international exchange of parcels and
express mail items.
28
2.1.5 CORPORATE FUNCTIONS
Corporate functions work closely with the Business functions in order to provide support across all areas of business with the
aim of ensuring the smooth running of the Company. Certain functions (Human Resources and Organisation, Purchasing, Internal
Auditing, Chief Information Office, Real Estate and Security & Safety) also have their own local units responsible for the correct
operational implementation of guidelines laid down by the respective central functions.
2.2 STRUCTURE OF THE GRUPPO POSTE ITALIANE
100%
100%
100%
Postecom
SpA
Postel SpA
10%
70%
Poste Tributi
ScpA
10%
SDA Express
Courier SpA
51%
39% CLP ScpA
5%
Mistral Air Srl
100%
15% *
Consorzio
70%
Poste Contact ***
)
(
50%
Italia Logistica
Srl
5%
PosteTutela
SpA
100%
Poste Vita SpA
Poste Italiane
Trasporti SpA
100%
Poste Assicura
SpA
(
85%
Docutel SpA
PosteShop SpA
100%
BancoPosta
Fondi SpA SGR
50%
Docugest
SpA
17%
C-GLOBAL
SpA
20%
Poste
Link Scrl
Poste Energia
SpA
100%
PosteMobile
SpA
100%
70%
50%
51%
Uptime SpA
)
15%
15%
Address
Software Srl
49%
Consorzio per i
servizi di Telefonia
Mobile ScpA
51%
Poste Voice
SpA
100%
Innovazione e
Progetti ScpA
15%
0,25%
99,75%
Postel do
Brasil Ltda
( )
*
The remaining 15% of the investment is held by Postel SpA.
The Consortium was cancelled from Rome Companies’ Register on 18 January 2010.
(***)
The Consortium was merged with and into Poste Link Srl on 8 March 2010.
(
**)
100%
100%
51%
100%
55%
45%
( )
Consorzio
Poste Welfare
(in liquidation) **
PostelPrint
SpA
Europa Gestioni
Immobiliari SpA
100%
2. Organisation I 3. Financial review 29
3. FINANCIAL REVIEW
3.1 RISK MANAGEMENT FOR THE GROUP AND POSTE ITALIANE SPA
MACROECONOMIC ENVIRONMENT
Poste Italiane SpA’s operating performance in 2009 was again affected by the fallout from the crisis in the world’s
financial markets and the economic downturn that took hold in 2008, which has hit all the world’s leading economies,
generating a sharp fall in retail spending and in business demand for goods and services. Only towards the end of the
year did signs of a slow recovery strengthen, thanks in part to the economic stimulus measures put in place by
governments and central banks.
As the world climbs out of recession, Poste Italiane’s strategy for the period 2010-2012 aims to drive revenue growth
on the back of highly innovative services, accompanied by close attention to efficiency.
MARKET CONDITIONS AND COMPETITION
The natural decline in the volume of mail, linked to its progressive replacement by alternative forms of communication,
has been accelerated by the economic downturn. Moreover, in view of full deregulation of the postal market
(scheduled for 1 January 2011), this has been accompanied by growth in competition. In this context, the Company’s
strategy continues to focus on continuous development of our offerings, in line with market needs, and on reengineering and improving the efficiency of our processes. In response to the general crisis of confidence, Poste
Italiane has strengthened its position in retail financial and insurance services, where there is growing competition
from banks. In this area, the Company’s strategy is to offer extremely low-risk, highly liquid investment products.
FRAUD AND EXTERNAL EVENT RISKS
Poste Italiane SpA pays great attention to security in order to protect its staff and the Company’s assets, and deal with
the risks deriving from fraud or criminal actions committed by external agents. These risks are monitored via the antiphishing system, which identifies any attempts at phishing for customers’ details, the Security Room, which will be
described in the section on Investment, information campaigns aimed at customers, heightened fraud prevention
initiatives and an increased internal investigation capacity, as well as greater coordination with the police and
magistrates.
30
FINANCIAL RISK MANAGEMENT
Definition and optimisation of the financial structure, over both the short and medium/long term, and management of the
Group’s related cash flows is the responsibility of the Parent Company’s Finance department, acting in accordance with
the general guidelines established by governance bodies.
Management of the Group’s financial assets and liabilities is primarily attributable to the operations of the Parent Company
and the insurance subsidiary, Poste Vita SpA.
Balanced financial management and monitoring of the main risk/return profiles is carried out by organisational structures
operating separately and independently. In addition, specific processes are in place governing the assumption,
management and control of financial risks, including via the progressive introduction of appropriate information systems.
Implementation of information systems for front-office and middle-office use within the Finance department continued in
2009. In October 2009, this included the introduction of a new application that, in addition to improving front- and middleoffice operations, fulfils the aim of increasing the level of data security. The new application also provides the technological
and procedural basis for integration with Poste Italiane’s other systems.
From an organisational viewpoint, risk management is the responsibility of:
• a Finance Committee, which oversees Poste Italiane SpA’s financial strategy, based on indicators referring to internal
planning and the external economic/financial cycle. The Committee meets at least on a quarterly basis and is a specialist
body that advises on the analysis and identification of investment and disinvestment opportunities;
• a Risk Measurement and Control function carried out by appropriate functions established within the Parent Company
and the subsidiaries that provide financial and insurance services (BancoPosta Fondi SGR SpA and Poste Vita SpA), and
that operates on the basis of the organisational separation of risk assessment from risk management activities. The
results of these activities are examined by the relevant advisory committees, which are responsible for carrying out an
integrated assessment of the main risk profiles. The outcomes of these assessments are then examined by a Financial
Risk Committee set up by the Parent Company.
With regard to the Parent Company, financial transactions regard deposit-taking and the investment of its liquidity, in
addition to BancoPosta’s operations as governed by Presidential Decree 144/2001. In particular, these transactions regard
management of the liquidity deposited in postal current accounts, carried out in the Company’s own name but subject to
restrictions on the investment of such liquidity in compliance with the applicable legislation, and the management of
collections and payments in the name and on behalf of third parties.
Both types of investment (government securities and liquidity deposited with the MEF) are exposed to interest rate risk
that is analysed and monitored on the basis of the financial nature of the instruments and managed via an appropriate
hedging policy.
BancoPosta is engaged in reinvesting the funds deriving from maturing government securities. This was done by taking
account of the maturities of liabilities, in accordance with an amortisation schedule approved by the Board of Directors on
the basis of a statistical/econometric model, developed by a leading consulting firm, that reflects the interest rates and
maturities typical of postal current accounts. This model is updated continually16.
The Group’s own liquidity is managed in accordance with investment guidelines approved by the Board of Directors, which
require the Parent Company to invest in instruments such as government securities, high-quality corporate or bank bonds
and term bank deposits. Liquidity is also deposited in postal current accounts, with the cash managed in this way being
subject to the same terms as deposits by private current account holders.
16. In this regard, it is likely that in future the postal current account deposits of Public Sector customers will also be invested in euro area government
securities. This reflects the European Commission’s decision of 16 July 2008 relating to the level of interest rates paid to the Parent Company (pursuant
to art. 1, paragraph 31 of Law 266 of 23 December 2005, the 2006 Budget Law) on liquidity deriving from the postal current account deposits of Public
Sector customers held on deposit with the MEF.
3. Financial review 31
The financial instruments held by the insurance company, Poste Vita SpA, primarily regard investments designed to cover
its contractual obligations to policyholders who have taken out classic with profit life policies and index-linked and unitlinked policies. Other investments in financial instruments regard investment of the insurance company’s free capital.
With regard to cash flow management within the Group, a centralised treasury management system enables the automatic
elimination of co-existing large debit and credit balances attributable to individual companies, offering the Group
advantages in terms of improved liquidity and a reduction in the related risk. The system includes the five main subsidiaries
and makes use, via the banking channel, of zero balance cash pooling. In this way cash flows between the current accounts
of subsidiaries and the Parent Company are transferred on a daily basis.
Poste Vita SpA’s financial risks relate to separately managed accounts in the Branch I category sold by the Company and,
as is typical in the insurance business, deriving from the guaranteed minimum returns on investment to be paid to
policyholders, and the potential impact on the financial statements of the measurement of the assets in which the technical
provisions are invested.
Investments are continuously monitored by the Company, which also uses some of the most advanced risk analysis
methods (statistical matrix). The aim is to evaluate the compatibility of the estimated risks with how far they are
sustainable, based on the size of the balance sheet and the returns earned. The results of overall investment activities and
the above risk analysis are described to and discussed by the specially established Financial Risk Committee.
With regard to life assurance products in Branch III, consisting of index-linked and unit-linked policies, which do not offer
guaranteed capital or guaranteed minimum returns, the Company has taken steps to safeguard its own and the Group’s
reputation and its operating capacity by constantly monitoring changes in the risk profile. Particular attention was given to
monitoring certain financial instruments underlying index-linked policies issued in the period 2001-2002 by Programma
Dinamico SpA, a securitisation vehicle set up under Law 130/99. These instruments bring together different financial
positions, including securitisation transactions and credit and financial derivatives, whose performances were affected by
the financial and credit market crisis. Whilst it is true that, in accordance with the legal nature of the products in question,
the related investment risk is transferred to policyholders, if appropriate the Company is prepared to restructure the
instruments in order to safeguard its commercial interests, which could be prejudiced by widespread dissatisfaction among
customers, and the potential impact on its reputation as a result of a general expression of discontent.
In this context, in response to the continuing risk of declines in the value of the securities underlying Programma
Dinamico’s “Raddoppio” and “Index Cup” policies, as in December 2008 with regard to “Classe 3 A valore reale” and
“Ideale” policies, in May 2009 Poste Vita SpA offered policyholders the opportunity to convert these policies into Branch
I policies providing minimum returns guaranteed by the company. This was done to allow policyholders to reduce their risk
exposure, in view of the changed scenario.
Further information on financial risk management is provided in the notes to the consolidated and separate financial
statements for the year ended 31 December 2009 (note 3 in both documents).
RISKS CONNECTED TO THE MANAGEMENT OF HUMAN RESOURCES
The significance of the Company’s staff costs means that any changes in legislation, regarding contributions or other
staff-related matters, can have a substantial impact on its operating results.
32
In addition, the Company continues to be involved in labour disputes regarding its use of fixed-term contracts. This has
resulted in a number of important labour union agreements designed to resolve the situation.
Achievement of the Company’s objectives is dependent on the ongoing development of its staff through training
courses and e-learning initiatives designed to enhance the professional skills of the Company’s employees.
OTHER OPERATIONAL RISKS
Certain trading relations are governed by specific agreements and contracts, some of which have expired. Negotiations
regarding the related financial conditions and other aspects of their renewal are often complex.
The most important of these regard: the agreement with Cassa Depositi e Prestiti for 2010, which was signed early in
the year, governing the remuneration paid to Poste Italiane SpA for managing, issuing and redeeming Interest-bearing
Postal Certificates and for managing Postal Savings Book deposits and withdrawals; the Contratto di Programma
(Planning Agreement) that regulates relations between the Public Sector and Poste Italiane SpA regarding provision of
the Universal Postal Service; and the agreement with INPS covering activities relating to the payment of pensions.
In the case of certain services regulated by legislation and specific agreements or contracts (the Universal Service,
electoral tariff subsidies, publisher tariff subsidies), for which the Government has undertaken to reimburse a part of
the costs incurred by the Company, the amounts payable to Poste Italiane SpA are not always covered by provisions
set aside in the Government’s budget.
The legislation regarding publisher tariff subsidies may well change, partly as a result of upcoming deregulation of post services.
This section provides a summary of the operating results and financial position of the Gruppo Poste Italiane and the
Parent Company, Poste Italiane SpA, in 2009.
3.2 OPERATING RESULTS
INCOME STATEMENT
(€m)
Increase/(Decrease)
% Amount
Poste Italiane SpA
Year ended 31 Dec
2008
2009
(0.3)
28.5
(28)
1,577
10,372
5,535
10,344
7,112
36.0
33.5
12.6
(1.5)
n/s
643
53
2,245
(39)
(1)
1,788
158
17,853
2,589
1
2,431
211
20,098
2,550
-
66.5
3,446
5,180
8,626
n/s
3.0
2.8
(31.8)
(29.2)
(1,387)
180
15
14
(112)
1,691
6,042
540
(44)
384
304
6,222
555
(30)
272
8.8
129
1,470
1,599
(25.7)
(41.1)
(65)
(124)
253
302
188
178
n/s
0.6
0.4
1
4.6
7.7
71
49
1,519
637
1,590
686
2.4
21.4
882.6
904.0
Year ended 31 Dec
2009
2008
Revenues from sales and services
9,841
Earned premiums
n/a
Other income from financial
and insurance activities
168
Other operating income
194
Total revenue
10,203
Cost of goods and services
2,045
Change in trading properties
n/a
Net change in technical provisions for insurance
business and other claims expenses
n/a
Other expenses deriving from financial
and insurance activities
1
Staff costs
6,052
Depreciation, amortisation and impairments
504
Capitalised costs and expenses
(10)
Other operating costs
212
Operating Profit/(Loss)
Finance costs
Finance income
Profit/(loss) on investments accounted
for using the equity method
Profit/(Loss) Before Tax
Income tax expense
Profit for the year
(*)
Increase/(Decrease)
Amount
%
9,826
n/a
15
n/a
0.2
n/a
56
139
10,021
2,110
n/a
112
55
182
(65)
n/a
n/s
39.6
1.8
-3.1
n/a
n/a
n/a
n/a
11
5,880
492
(13)
302
n/s
172
12
3
(90)
n/s
2.9
2.4
(23.1)
(29.8)
1,399
1,239
160
12.9
174
144
232
268
(58)
(124)
-25.0
-46.3
n/a
n/a
n/a
n/a
1,369
633
1,275
554
94
79
7.4
14.3
736.7
720.8
15.9
2.2
Certain amounts for 2008 have been reclassified in order to ensure comparability across the two periods.
Certain amounts for 2008 have been adjusted in application of IFRIC 13 (note 2.3 to the consolidated financial statements and note 2.2 to the separate
financial statements).
n/a: not applicable.
n/s: not significant.
(*)
Profit is entirely attributable to owners of the Parent, and no portion is attributable to minority interest.
34
OPERATING RESULTS OF THE GRUPPO POSTE ITALIANE
Revenue by operating segment
(*)
Total revenue
Increase/(Decrease)
(€m)
2008
2009
Amount
Postal Services
5,506
5,227
(279)
Financial Services
4,595
4,964
369
8.0
Insurance Services
7,268
9,376
2,108
29.0
484
531
47
9.7
17,853
20,098
2,245
12.6
Other Services
Total Gruppo Poste Italiane
(*)
%
(5.1)
After consolidation adjustments and elimination of intercompany transactions.
Total Group revenues (€m)
21,000
18,000
+27.7%
+9.7%
+7.7%
+29.0%
+2.0%
+8.0%
-0.8%
-5.1%
15,000
12,000
9,000
6,000
3,000
0
2007
2008
2009
Postal Services
Insurance Services
Financial Services
Other Services
A more detailed breakdown of revenue by type of revenue/income is shown below:
Revenues
(€m)
2008
Other income from
financial and
insurance activities
Earned premiums
2009
Inc./(dec)
%
2008
2009
Inc./(dec)
%
2008
2009
Other
operating
income
Inc./(dec)
%
2008
2009
Inc./(dec)
%
Postal Services
5,483
5,210
(5.0)
-
-
-
-
-
-
23
Financial Services
4,539
4,796
5.7
-
-
-
56
168
n/s
-
-
n/s
-
-
-
5,535
7,112
28.5
1,732
2,263
30.7
1
1
n/s
Other Services
350
338
(3.4)
-
-
-
-
-
-
134
193
44.0
Total Gruppo
Poste Italiane
10,372
10,344
(0.3)
5,535
7,112
28.5
1,788
2,431
36.0
158
211
33.5
Insurance Services
17 (26.1)
The contribution of the various Group companies to Postal Service revenues is shown below.
Postal Services
(€m)
Poste Italiane SpA
intercompany revenues
Poste Italiane SpA - external revenue
SDA Express Courier SpA
SDA Express Courier SpA - external revenue
Italia Logistica srl
Italia Logistica srl - external revenue
Gruppo Postel
Gruppo Postel - external revenue
Mistral Air Srl
Mistral Air Srl - external revenue
Poste Italiane Trasporti SpA
Poste Italiane Trasporti SpA - external revenue
Total external revenue
Total revenue
2008
4,953
16
Increase/(Decrease)
2009
4,709
16
Amount
%
4,693
(244)
(4.9)
288
(18)
(5.9)
26
10
62.5
217
(24)
(10.0)
3
(2)
(40.0)
1
0
(1)
n/s
5,506
5,227
(279)
(5.1)
4,937
457
151
423
135
306
33
17
37
11
16
362
121
349
132
241
24
19
29
26
5
35
34
31
31
The Group’s total revenue, amounting to 20,098 million euros (up 12.6% on 2008) reflects a 5.1% reduction in revenues
from Postal Services, offset by growth of 8.0% in Financial Services and a significant increase in earned premiums (up from
5,535 million euros in 2008 to 7,112 million euros in 2009, marking a rise of 28.5%).
The economic crisis that had such a significant impact in 2008 continued into 2009, despite a partial pick-up in industrial
output in the third quarter of the year, which did not, however, extend into the fourth quarter. Overall, production, along with
consumer spending and investment, remained weak, resulting in an ongoing climate of uncertainty that has also affected
the postal market, already in decline due to reduced demand for postal services and the progressive conversion to other
forms of communication.
Revenues from Postal Services (down from 5,506 million euros in 2008 to 5,227 million euros in 2009) continue to suffer
the effects of the gradual process of opening up the postal market to competition and the ongoing economic downturn,
accompanied by a resulting decline in trade.
As already mentioned, revenues from Financial Services are up from the 4,595 million euros of 2008 to 4,964 million euros
for 2009, confirming customers’ confidence in the Group’s ability to offer a range of products, above all in terms of postal
savings, that provide a guaranteed match with customer needs and risk profiles.
Revenues from Insurance Services are up 29.0%, rising from 7,268 million euros in 2008 to 9,376 million euros for 2009.
This reflects both the significant rise in earned premiums and the contribution of other income from insurance activities,
which is up from the 1,732 million euros of 2008 to 2,263 million in 2009, marking an increase of 30.7%. This primarily
reflects the movements in the fair value of financial instruments and gains recognised by the subsidiary, Poste Vita.
Revenues from Other Services, generated by activities unrelated to the three main operating segments, primarily regard
income from property sales and leases generated by EGI SpA, sales through the PosteShop network, and income from
collective asset management activities carried out by BancoPosta Fondi SpA SGR.
36
COST ANALYSIS
Costs
2008
2009
% inc./(dec)
2,589
1
5,180
1,691
6,042
540
(44)
384
2,550
8,626
304
6,222
555
(30)
272
(1.5)
n/s
66.5
n/s
3.0
2.8
(31.8)
(29.2)
16,383
18,499
12.9
(€m)
Cost of goods and services (*)
Net change in technical provisions for insurance business and other claims expenses
Other expenses deriving from financial and insurance activities
Staff costs
Other operating costs (*)
Total costs
(*)
The amount for 2008 has been adjusted in application of IFRIC 13 (note 2.3 to the consolidated financial statements).
Costs and other charges (18,499 million euros in 2009, compared with 16,383 million euros in 2008) reflect:
• the Group’s ability to keep a tight rein on the cost of goods and services, which is down 39 million euros (falling from
2,589 million euros in 2008 to 2,550 million euros in 2009). This reduction is even more significant if, as noted below in
relation to the Parent Company, we take account of the greater costs linked to the new system of meal provision for
staff;
• an increase in technical provisions for the insurance business (up 3,446 million euros on 2008, amounting to a rise of
66.5%) due to growth in the business and the resulting increase in obligations to policyholders for which the provisions
are made;
• reduced losses resulting from the fair value measurement of financial instruments, which are largely attributable to the
portfolio held by Poste Vita;
• a reduction in other operating costs (which are down from 384 million euros in 2008 to 272 million euros in 2009), which
benefitted from a reduction in impairments of the Parent Company’s receivables.
Staff costs were the main driver of the increase in operating costs, as shown below.
Staff costs
(€m)
Salaries, social security contributions and sundry charges
Net provisions for disputes
Provisions for restructuring charges
Redundancy payments
Increase/(Decrease)
2008
5,759
431
55
2009
5,860
198
115
170
Amount
101
(233)
115
115
%
1.8
(54.1)
n/s
n/s
Total costs
Income from fixed-term contract agreement
6,245
(203)
6,343
(121)
98
82
1.6
(40.4)
Total staff costs
6,042
6,222
180
3.0
(*)
(*)
This includes the following items reported in note 37 to the consolidated financial statements: salaries and wages; social security contributions; staff
termination benefits; temporary work; Directors’ fees and expenses; other costs.
The ordinary component of staff costs, relating to salaries, wages, contributions and sundry expenses, reports an increase
of 1.8%, despite a reduction in the average workforce (the permanent and flexible workforce was down 1.5% on 2008).
The increase reflects salary rises, agreement with the labour unions regarding performance-related bonuses, and increased
contributions payable as a result of the entry into force, from 1 January 2009, of art. 20 of Law 133/2008, which requires
Poste Italiane to pay contributions to INPS to cover maternity, unemployment and sickness benefits.
Net provisions for disputes which, as in the past, are mainly linked to the dispute over fixed-term contracts and reflect best
estimates based on past experience.
Provisions for restructuring charges regard the estimated liabilities to be incurred by the Company in the form of
redundancy payments, based on current evidence. At least three thousand staff are expected to leave the Company by 31
December 2010.
After also taking account of non-recurring income of 121 million euros deriving from agreements between the Parent
Company and the labour unions, regarding the re-employment by court order of staff previously employed on fixed-term
contracts, total staff costs are up 3% from 6,042 million euros in 2008 to the 6,222 million euros of 2009.
The above performance of revenues and costs has resulted in Operating profit of 1,599 million euros (1,470 million euros
in 2008), as shown in the following table.
Operating profit: operating segments
Increase/(Decrease)
(*)
(€m)
2008
2009
Amount
%
Postal Services
Financial Services
Insurance Services
Other Services
Eliminations (**)
(57)
1,153
232
132
10
(208)
1,422
272
107
6
(151)
269
40
(25)
(4)
n/s
23.3
17.2
(18.9)
(40.0)
Total Gruppo Poste Italiane
1,470
1,599
129
8.8
(*)
Determined on the basis of the accounting unbundling regime required by art. 7.c.1 of Legislative Decree 261/99, after consolidation adjustments and
elimination of intercompany transactions.
(**)
Elimination of cost incurred by the Parent Company for interest paid to consolidated subsidiaries (recognised by the latter in finance income).
After net finance costs of 9 million euros, profit before tax amounts to 1,590 million euros (1,519 million euros in 2008).
Income tax expense, which continues to account for a high proportion of profit, above all due to the high tax rate applied
by the Parent Company due to the large amount of non-deductible staff costs for the purposes of IRAP (regional business
tax), is 686 million euros (637 million euros in 2008). This reflects, among other things, the benefit of being able to reverse
the differences emerging on first-time application of IAS/IFRS via payment of a substitute tax, as a number of Group
companies elected to do, and the option of franking goodwill from extraordinary transactions, which has been exercised
by Postel. These actions enabled the Group to offset deferred tax liabilities of 91 million euros and recognise deferred tax
assets of 19 million euros, following the payment of total substitute tax of 59 million euros. This resulted in a tax benefit
of 51 million euros (2008 saw non-recurring tax benefits of 65 million euros). The figure for income tax expense also reflects
an IRES credit of 10.7 million euros. This derives from the decision to claim a rebate for excess IRES paid by consolidated
companies in 2007, corresponding to 10% of IRAP paid in the same year, as established by art. 6 of Law Decree of 29
November 2008, converted into Law 2 of 28 January 2009.
38
Gruppo Poste Italiane - EBIT by principal segment (€m)
1.500
1.200
900
600
300
0
(300)
2007
2008
Postal Services
2009
Financial Services
2007
2008
2009
2007
2008
2009
Insurance Services
OPERATING RESULTS OF POSTE ITALIANE SPA
Revenues
Increase/(Decrease)
(€m)
2008
2009
Amount
%
Mail and Philately
Express Delivery, Logistics and Parcels
Total market revenues from Postal Services (*)
BancoPosta services
Other revenues
Market revenues
Universal Service Obligation (USO) subsidies (*)
Tariff subsidies (*)
Total Poste Italiane SpA
4,045
202
4,247
4,781
92
9,120
364
342
9,826
3,852
175
4,027
5,039
93
9,159
372
310
9,841
(193)
(27)
(220)
258
1
39
8
(32)
15
(4.8)
(13.4)
(5.2)
5.4
1.1
0.4
2.2
(9.4)
0.2
4,247
4,027
364
372
(*)
Market revenues from Postal Services
OSU
Tariff subsidies
(**)
Total Postal Services
(**)
342
310
4,953
4,709
(244)
(4.9)
Subsidies for services provided at discounted rates under the relevant legislation.
Poste Italiane SpA’s Revenues amount to 9,841 million euros, substantially in line with the previous year (up 0.2% on the
9,826 million euros of 2008).
External revenue is up 0.4% from 9,120 million euros in 2008 to 9,159 million euros in 2009, reflecting the positive
contribution from BancoPosta’s services (up 258 million euros on 2008). This more than offset the progressive decline in
revenues from Postal Services (down 220 million euros on 2008), essentially due, as explained in the section “Operating
segments”, to declines in Unrecorded Mail and Business Post (Direct Marketing and Unaddressed Mail), which have
suffered the effects of both the recession and the process of postal market deregulation.
BancoPosta reports a highly positive performance for postal savings deposits (a net inflow of 5,537 million euros during
the year), reward for the Company’s commitment to attracting investment in Interest-bearing Postal Certificates and the
net inflow of Savings Book deposits.
Universal Service Obligation (USO) subsidies of 372 million euros are, whilst awaiting renewal of the Contratto di
Programma (Planning Agreement) for the three-year period 2009-2011, estimated on the basis of the best available
information from previous Contratti di Programma (Planning Agreements) and Interministerial Committee for Economic
Planning (CIPE) “Guidelines for Regulation of the Postal Sector”.
The tariff subsidies due to the Company as a result of the legally required application of reduced-rate tariffs to certain
sectors (publishing, non-profit organisations, election campaign material) are down from the 342 million euros of 2008 to
310 million euros in 2009. This income, of which 243 million euros is received from the Information and Publishing
Department of the Cabinet Office in return for tariff reductions offered to publishers and non-profit organisations, and 67
million euros from the Ministry of the Economy and Finance in the form of subsidies to cover the reductions and
preferential tariffs made available to election candidates, are not fully funded in the Government’s budget.
Total revenue also includes 168 million euros in other income from financial activities (56 million euros in 2008),
representing income from the securities in which postal current account deposits are invested, and 194 million euros (139
million euros in 2008) in other operating income, including 57 million euros from the sale of properties (35 million euros in
2008).
COST ANALYSIS
Costs
(€m)
(*)
Other expenses deriving from financial activities
2008
2009
% inc./(dec)
2,110
2,045
(3.1)
11
1
(90.9)
5,880
6,052
2.9
492
504
2.4
(13)
(10)
(23.1)
302
212
(29.8)
8,782
8,804
0.3
Staff costs
(*)
Total costs
(*)
The amount for 2008 has been adjusted in application of IFRIC 13 (note 2.2 to the separate financial statements).
Costs and other charges of 8,804 million euros (8,782 million euros in 2008) account for 89% of revenue. The increase on
the previous year (up 22 million euros) is due to increased staff costs, offset by cost cutting by the Company and the Group.
The cost of goods and services is down 65 million euros from 2,110 million euros in 2008 to 2,045 million euros in 2009.
If the greater costs linked to the new system of meal provision for staff (up 59 million euros on 2008), which extended the
distribution of luncheon vouchers to all staff from 1 September 2008, is taken into account, the decline in external costs
confirms the significant efforts made by the Group to keep costs under control.
Interest paid to current account holders is also down, falling 31 million euros as a result of reductions in the rates applied,
which were lowered to 0.50% until 31 May 2009 and 0.25% from 1 June 2009.
40
Other operating costs of 212 million euros (302 million euros in 2008) are down 29.8% due to reduced impairments
of receivables. This item also includes prudential provisions for any charges that may be incurred as a result of
impairment losses due to a deterioration in the outlook for investments in companies operating in the postal services
sector.
This item also benefitted from the release of provisions for impaired receivables made in previous years and deemed to
be no longer necessary, following collection of the related receivable.
Staff costs break down as follows:
Staff costs
(€m)
Salaries, social security contributions and sundry charges
Net provisions for disputes
Redundancy payments
Increase/(Decrease)
2008
5,596
432
55
2009
5,691
197
115
170
Amount
95
(235)
115
115
%
1.7
(54.4)
n/s
n/s
Total costs
6,083
6,173
90
1.5
Income from fixed-term contract agreement
(203)
(121)
82
(40.4)
Total Staff costs
5,880
6,052
172
2.9
(*)
(*)
This includes the following items reported in note 31 to the separate financial statements: salaries and wages; social security contributions; staff termination
benefits; temporary work; Directors’ fees and expenses; other costs (cost recoveries).
The ordinary component of staff costs, relating to salaries, wages, contributions and sundry expenses, reports an increase
of 1.7% (up from 5,596 million euros in 2008 to 5,691 million euros in 2009). The increase reflects salary rises, agreement
with the labour unions regarding performance-related bonuses, and increased contributions payable as a result of the entry
into force, from 1 January 2009, of art. 20 of Law 133/2008, which requires Poste Italiane to pay contributions to INPS to
cover maternity, unemployment and sickness benefits.
After also taking account of non-recurring income of 121 million euros deriving from agreements between the Company
and the labour unions, regarding the re-employment by court order of staff previously employed on fixed-term contracts,
total staff costs are up 2.9% from 5,880 million euros in 2008 to the 6,052 million euros of 2009.
After net finance income, Profit before tax from ordinary activities amounts to 1,369 million euros (1,275 million euros in
2008).
Income tax expense, which continues to account for a high proportion of profit, above all due to the high tax rate applied
by the Company due to the large amount of non-deductible staff costs for the purposes of IRAP (regional business tax), is
633 million euros in 2009 (554 million euros in 2008). This reflects, among other things, the benefit of being able to reverse
the differences emerging on first-time application of IAS/IFRS via payment of a substitute tax. This action enabled the
Company to offset deferred tax liabilities of 91 million euros, following the payment of substitute tax of 49 million euros.
This resulted in a tax benefit of 42 million euros (2008 saw non-recurring tax benefits of 64 million euros). The figure for
income tax expense also reflects an IRES credit of 10 million euros. This derives from the decision to claim a rebate for
excess IRES paid in 2007, corresponding to 10% of IRAP paid in the same year, as established by art. 6 of Law Decree of
29 November 2008, converted into Law 2 of 28 January 2009.
3.3 FINANCIAL POSITION AND CASH FLOW
FINANCIAL POSITION AND CASH FLOW OF THE GRUPPO POSTE ITALIANE
The Gruppo Poste Italiane’s Net invested capital amounts to 3,237 million euros (2,737 million euros at 31 December
2008), financed entirely by equity.
(€m)
Non-current assets
Working capital
Staff termination benefits
Note
(*)
[25]
(*)
31 Dec 2008
3,872
380
(1,515)
31 Dec 2009
3,807
876
(1,446)
Increase/(Decrease)
(65)
496
69
2,737
3,237
500
Notes to the consolidated financial statements.
Non-current assets break down as follows at 31 December 2009 and 2008:
(€m)
Property, plant and equipment
Investment property
Intangible assets
Investments accounted for using the equity method
Non-current assets held for sale
Non-current assets
(*)
Note
(*)
31 Dec 2008
31 Dec 2009
Increase/(Decrease)
[5]
[6]
[7]
[8]
[18]
3,236
172
453
7
4
3,124
154
514
14
1
(112)
(18)
61
7
(3)
3,872
3,807
(65)
Compared with the situation at the end of 2008, non-current assets report a net decrease of 65.1 million euros as a result
of reductions of 580.4 million euros and additions totalling 515.3 million euros.
Reductions regard:
• sales of Investment property, totalling 11.8 million euros, and of Property, plant and equipment, amounting to 10.6 million
euros, primarily relating to the disposal of operating properties by the Parent Company;
• sales of industrial properties owned by the Parent Company and accounted for in Non-current assets held for sale,
amounting to 2.7 million euros;
• depreciation, amortisation and impairments totalling 555 million euros, of which 391 million euros regards Property,
plant and equipment, 157.3 million euros Intangible assets and 6.9 million euros depreciation and impairments of
Investment property, after reversals of impairments. Impairments of 14 million euros are entirely attributable to the
Parent Company and primarily regard buildings damaged by the earthquake that hit the Abruzzo region in April 2009.
The value of the damage to the Company’s property, plant and equipment is almost entirely covered by suitable
insurance policies.
Additions regard:
• investments in Property, plant and equipment, amounting to 288.9 million euros, carried out primarily by the Parent
Company and largely related to both design work for the planned re-engineering of the logistics network (the
reorganisation of Sorting Centres and the purchase of equipment for the new delivery centres), and the modernisation
and upgrade of properties owned by the Company (for example, the purchase and maintenance of properties that
42
•
•
•
•
house post offices around the country, and the purchase of hardware for new information technology systems for post
offices);
investments in Intangible assets, amounting to 218.2 million euros, primarily by the Parent Company and regarding the
purchase, and entry into service, of both new software applications for the maintenance and development of the
technology infrastructure used to support the provision of financial services, and new software applications for innovative
Mail, WEB Oriented and BancoPosta services;
acquisitions of Investments, totalling 6 million euros, and including: 5.9 million euros for Poste Vita SpA’s subscription of
new shares issued by Poste Assicura SpA (4.9 million euros) and further contribution of 1 million euros to top up the
company’s “provision for start-up costs”, for the purpose of converting the company into a Non-life Company; 0.1 million
euros to fund Postel SpA’s admission as a new member of the Poste Contact consortium;
purchases of Investment property, amounting to 0.6 million euros;
adjustments and reclassifications of 1.6 million euros.
Working capital breaks down as follows at 31 December 2009 and 2008:
(€m)
Note
Inventories
Trade receivables and other current assets
Trade payables and other current liabilities
Current and deferred tax assets and liabilities
Provisions for liabilities and charges
Other non-current assets and liabilities
Working capital
(**)
(*)
31 Dec 2008
31 Dec 2009
Increase/(Decrease)
[12]
[13] [15]
[27] [29]
[10] [14] [28]
[24]
[11] [29]
53
4,105
(3,459)
300
(1,162)
543
53
4,684
(3,578)
198
(1,234)
753
n/s
579
(119)
(102)
(72)
210
380
876
496
(*)
(**)
Working capital does not include the amount of 485 million euros payable by the Parent Company to parents, following the European Commission’s
Decision C42/2006 of 16 July 2008. This sum was paid into an escrow account set up in favour of the Ministry of the Economy and Finance and paid to
the MEF in January 2009.
Working capital amounts to 876 million euros, representing an increase of 496 million euros compared with the end of 2008.
The rise is essentially due to the net increase in Trade receivables and other current assets of 579 million euros due to:
• the increase in amounts due to the Parent Company from Cassa Depositi e Prestiti as fees and commissions for the collection
of postal savings deposits accruing in 2009 and yet to be collected;
• the delay in collecting amounts due to the Parent Company from the Ministry of the Economy and Finance in the form of
Universal Service Obligation (USO) subsidies;
• the delay in collecting amounts due to the Parent Company from the Information and Publishing Department of the Cabinet
Office in the form of publisher tariff subsidies.
At 31 December 2009 Equity amounts to 4,575 million euros (3,422 million euros at 31 December 2008) and breaks down as
follows:
• Share capital
1,306.1 million euros
• Reserves
663.6 million euros
• Retained earnings
2,605.2 million euros.
Compared with 31 December 2008, Equity has increased by 1,153.3 million euros as a result of the following changes.
Additions:
• net profit for the period of 904 million euros;
• movements in the fair value reserves, amounting to 364 million euros net of tax;
• the balance of actuarial gains and losses on provisions for staff termination benefits, totalling 36.9 million euros net of tax.
Reductions:
• the payment of dividends to shareholders, totalling 150 million euros;
• movements in the cash flow hedge reserves, amounting to 1.6 million euros net of tax.
Net funds at 31 December 2009 are summarised below:
(€m)
Note
(*)
31 Dec 2008
31 Dec 2009
Increase/(Decrease)
Financial liabilities
- Financial assets at fair value
- Bonds
- Shareholder loans
- Bank borrowings
- Other borrowings
- Other (**)
[26]
7,544
2,816
771
840
668
153
5,882
1,691
771
679
261
110
(1,662)
(1,125)
n/s
(161)
(407)
(43)
Technical provisions for insurance business
Liabilities attributable to BancoPosta
Financial assets
- Loans and receivables
- Available-for-sale financial assets
- Financial instruments at fair value through profit or loss
- Other derivative financial instruments
Assets attributable to BancoPosta
Technical provisions for claims attributable to reinsurers
Net liabilities/(assets)
Deposits and cash in hand
Net debt/(funds)
[23]
[16]
[9]
2,296
28,333
37,064
(32,370)
(1,028)
(19,502)
(11,827)
(13)
(38,909)
(0.2)
1,662
(2,346)
(684)
2,370
35,927
37,718
(39,313)
(864)
(27,776)
(10,638)
(35)
(39,512)
(1.0)
701
(2,039)
(1,338)
74
7,594
654
(6,943)
164
(8,274)
1,189
(22)
(603)
(0.8)
(961)
307
(654)
[16]
[11]
[17]
(*)
(**)
Includes derivative instruments, financial liabilities payable to subsidiaries and other financial liabilities.
Net funds have improved by 654 million euros to 1,338 million euros at 31 December 2009 (at the end of 2008 the figure
was 684 million euros), thanks to the significant amount of cash generated by the Parent Company’s activities, as described
below.
(€m)
31 Dec 2008
31 Dec 2009
Deposits and cash in hand at beginning of year
Cash flow from/(for) operating activities
Cash flow from/(for) investing activities
Cash flow from/(for) financing activities and shareholder transactions
759
2,559
(626)
(346)
2,346
859
(657)
(509)
Net change in cash and cash equivalents
1,587
(307)
Deposits and cash in hand at end of year
2,346
2,039
44
Liquidity at 31 December 2009 stands at 2,039 million euros (2,346 million euros at the end of 2008) and relates to the
investment of cash temporarily held by Poste Vita at the end of the previous year and regards Branch I policies.
FINANCIAL POSITION AND CASH FLOW OF POSTE ITALIANE SPA
Poste Italiane SpA’s Net invested capital amounts to 3,605 million euros (3,098 million euros at 31 December 2008),
financed entirely by equity.
(€m)
Non-current assets
Working capital
Note
(*)
[21]
(*)
31 Dec 2008
4,519
66
(1,487)
31 Dec 2009
4,464
560
(1,419)
Increase/(Decrease)
(55)
494
68
3,098
3,605
507
31 Dec 2008
3,066
91
301
1,058
3
31 Dec 2009
2,966
77
345
1,075
1
Increase/(Decrease)
(100)
(14)
44
17
(2)
4,519
4,464
(55)
Notes to the separate financial statements.
Non-current assets break down as follows at 31 December 2009 and 2008:
(€m)
Investment property
Intangible assets
Investments
Non-current assets
(*)
Note (*)
[4]
[5]
[6]
[7]
[16]
Compared with the situation at the end of 2008, non-current assets report a net reduction of 55 million euros, following
additions of 471 million euros and reductions of 526 million euros.
Additions regard:
• investments in Property, plant and equipment, amounting to 269 million euros, Intangible assets, totalling 184.5 million
euros, and Investment property, amounting to 0.3 million euros, with 54% regarding information technology and
telecommunications networks, 16% postal logistics and 30% the modernisation and upgrade of properties;
• acquisition of Investments, totalling 16.5 million euros, represented by capital contributions for PosteMobile SpA, totalling
13.5 million euros, and Mistral Air Srl, totalling 3 million euros;
• adjustments and reclassifications of 0.4 million euros.
Reductions regard:
• sales of Investment property, totalling 11 million euros, and of Property, plant and equipment, amounting to 7.7 million
euros (primarily relating to the disposal of operating properties and the retirement of obsolete plant);
• sales of Non-current assets held for sale, totalling 2.7 million euros;
• depreciation, amortisation and impairments of 504.4 million euros, which includes 361.3 million euros relating to
depreciation of Property, plant and equipment, 140.6 million euros to amortisation of Intangible assets and 2.5 million
euros regarding revaluations of Investment property, after reversals of impairments.
Working capital breaks down as follows at 31 December 2009 and 2008:
(€m)
Trade receivables and other current assets
Trade payables and other current liabilities
Current and deferred tax assets and liabilities
Other non-current assets and liabilities
Working capital
(*)
(**)
(**)
Note (*)
[11] [13]
[23] [25]
[9] [12] [24]
[20]
[10] [25]
31 Dec 2008
3,749
(3,247)
294
(1,077)
347
31 Dec 2009
4,412
(3,268)
176
(1,181)
421
Increase/(Decrease)
663
(21)
(118)
(104)
74
66
560
494
Working capital does not include the amount of 485 million euros payable by the Company to parents, following the European Commission’s Decision
C42/2006 of 16 July 2008. This sum was paid into an escrow account set up in favour of the Ministry of the Economy and Finance and paid to the MEF
in January 2009.
Working capital amounts to 560 million euros, representing an increase of 494 million euros compared with the end of
2008. The rise is essentially due to the net increase in Trade receivables and other current assets of 663 million euros
due to:
• the increase in amounts due to from Cassa Depositi e Prestiti as fees and commissions for the collection of postal
savings deposits accruing in 2009 and yet to be collected;
• the delay in collecting amounts due from the Ministry of the Economy and Finance in the form of Universal Service
Obligation (USO) subsidies;
• the delay in collecting amounts due from the Information and Publishing department of the Cabinet Office in the form of
publisher tariff subsidies.
At 31 December 2009 Equity amounts to 4,076.9 million euros and breaks down as follows:
• Share capital
1,306.1 million euros
• Reserves
659.6 million euros
• Retained earnings
2,111.2 million euros.
Compared with 31 December 2008, Equity has increased by 987.9 million euros as a result of the following changes.
Additions:
• net profit for the year of 736.7 million euros;
• movements in the fair value reserves, amounting to 366.7 million euros net of tax; the balance of actuarial gains and
losses on provisions for staff termination benefits, totalling 36.1 million euros net of tax.
Reductions:
• the payment of dividends to shareholders, totalling 150 million euros;
• movements in the cash flow hedge reserves, amounting to 1.6 million euros net of tax.
46
Net debt/(funds) at 31 December 2009 is summarised below:
(€m)
- Bonds
- Shareholder loans
- Bank borrowings
- Other borrowings
- Other (**)
Financial assets
- Loans and receivables
- Available-for-sale financial assets
- Derivative financial instruments
Note
(*)
31 Dec 2008
31 Dec 2009
Increase/(Decrease)
[22]
4,764
771
840
657
111
2,385
37,206
(2,079)
(1,527)
(551)
(1)
(38,909)
982
(973)
4,437
771
679
251
76
2,660
37,810
(1,608)
(1,347)
(261)
(39,512)
1,127
(1,599)
(327)
n/s
(161)
(406)
(35)
275
604
471
180
290
1
(603)
145
(626)
9
(472)
(481)
[14]
[8]
[14]
[15]
Net debt/(funds)
(*)
(**)
Includes derivative instruments, financial liabilities payable to subsidiaries and other financial liabilities.
Net funds of 472 million euros at 31 December 2009 mark an improvement of 481 million euros on the net debt of 9 million
euros reported at the end of 2008. This primarily reflects an increase in operating cash flow, and a reduction in cash
outflows for investing activities. Therefore, after repaying a number of borrowings maturing during the year, requiring an
ouflow of approximately 600 million euros, and having paid dividends to shareholders, the Company’s Liquidity at 31
December 2009 amounts to 1,599 million euros (973 million euros at 31 December 2008).
(€m)
31 Dec 2008
31 Dec 2009
619
1,494
(863)
(277)
973
1,547
(595)
(326)
Net change in cash and cash equivalents
354
626
973
1,599
Cash flow from/(for) operating activities
Cash flow from/(for) investing activities
Cash flow from/(for) financing activities and shareholder transactions
3. Financial review | 4. Areas of business 47
4. AREAS OF BUSINESS
Gruppo Poste Italiane offers integrated communication, logistics and financial services and products across Italy, through
a network of around 14,000 post offices, its website and the contact centre. Poste Italiane SpA is obliged to supply a
Universal Postal Service until 2015.
The Group increasingly aims to supply integrated services and innovative solutions to the general public, to businesses and
Public Sector entities (central and local government bodies) by taking advantage of its distribution channels, as well as the
multiple and complementary capabilities of its organisational structure.
The Group also supplies Public Sector entities with a variety of collection, payment and reporting services, in keeping with
the development of e-government processes. Via its post office network the Group also provides socially relevant services
by enabling access to public services of an administrative and financial nature, such as the “Reti Amiche” project and the
“Social Card” initiative.
The business is organised into the three segments described below: Postal Services, Financial Services and Insurance
Services.
• Postal Services, including Mail, Express and Parcels, and Philately activities carried out by Poste Italiane SpA and certain
subsidiaries (SDA Express Courier, the Postel Group, Poste Italiane Trasporti SpA, Mistral Air Srl, Consorzio Logistica
Pacchi ScpA and Italia Logistica Srl).
• Financial Services, including the activities of BancoPosta and the subsidiary, Poste Tutela SpA.
• Insurance Services, including the activities carried out by Poste Vita SpA (whose products are distributed through post
offices) and its subsidiary, Poste Assicura SpA.
• Other complementary activities carried out by Poste Italiane SpA, as well as those conducted by certain Group companies
(BancoPosta Fondi SpA SGR, EGI SpA, Postecom SpA, PosteShop SpA, Poste Link SCRL, PosteMobile SpA, Poste
Energia SpA and Poste Tributi SpA), which are allocated to the Other Services segment.
48
4.1 POSTAL SERVICES
This segment includes three areas of activity:
• Mail, comprising Poste Italiane SpA's provision of traditional postal services, as well as direct marketing and innovative
services, within the broader sector of paper-based and electronic communications, and the services provided by the
Postel Group in the Mass Printing sector;
• Philately, which regards the marketing of Postage and Revenue Stamps and products for stamp collectors;
• Express and Parcels, including express delivery products offered on the deregulated market by Poste Italiane SpA to
Retail and SME customers, and by SDA Express Courier to business customers, as well as the Standard Parcels service
offered under the Universal Service Obligation.
The subsidiaries, Mistral Air SpA and Poste Italiane Trasporti SpA, provide support services and air and road transport,
whilst Consorzio Logistica Pacchi ScpA carries out sorting, handling and delivery activities relating to the parcels
service.
The Contratto di Programma (Planning Agreement) regulates relations between the Ministry of Economic Development
and Poste Italiane SpA regarding provision of the Universal Postal Service. The agreement regarding the three-year period
2009-2011 is still being drawn up. Until it is signed, the provisions of the Contratto di Programma (Planning Agreement) for
2006-2008 will remain in force. The Addendum to the Contratto di Programma (Planning Agreement) for 2006-2008,
prepared jointly by Poste Italiane and the Ministry for Economic Development and envisaging the recovery of the remaining
subsidies due as compensation for providing a universal service under the subsidy cap mechanism, has been modified by
the Interministerial Committee for Economic Planning (CIPE), which in its opinion of 18 December 2008 (published in the
Official Gazette of 18 April 2009) revised the amounts payable for the years 2006, 2007 and 2008. The text, as modified
by the Committee, must receive the approval of the Ministry of the Economy and Finance before it can be signed by the
parties.
The Philately business is also regulated by the Contratto di Programma (Planning Agreement), which governs the issuance
of Postage and Revenue Stamps, by granting the Ministry for Economic Development the exclusive right to plan the issue
of Postage and Revenue Stamps, with responsibility for distribution and marketing assigned to Poste Italiane SpA. The
annual issue plan is subject to approval by the "Consulta per l'emissione delle Carte Valori Postali e la Filatelia" ("Council for
the Issue of Postage and Revenue Stamps and Philately"), which is chaired by the relevant Minister.
The existing regulatory framework provides for three-yearly reviews of the prices and tariffs applied to postal products, in
order to keep pace with inflation over the previous three years and take account of the quality levels achieved during the
period. Legislative Decree 261/1999 requires any changes to the prices of products exposed to competition to be decided
on directly by the Ministry for Economic Development – Communication (the Postal Market Regulator), based on Poste
Italiane’s proposals.
The Decree issued by the Ministry for Economic Development on 19 June 2009 came into effect on 29 June. This contains
provisions governing the sending of registered and insured mail, both nationally and overseas, that falls within the scope
of the universal postal service and does not regard administrative and legal process. The Decree introduces certain changes
to the pricing structure in effect at 1 January 2004 and gives greater importance to the alignment of prices with the real
cost of the service and market trends.
The main changes regard alterations to the prices for Posta Raccomandata and Posta Assicurata (registered and insured
mail) for retail customers and the introduction of new non-retail products, Posta Raccomandata Smart and Posta
Assicurata Smart, which can only be collected at specially enabled centres in Poste Italiane’s logistics network, and that
involve the differentiation of prices based on the location of addressees. The new tariffs continue to be below the
European average.
4. Areas of business 49
Law 69 of 18 June 2009 relating to “Provisions regarding economic development, simplification, competitiveness and civil
procedures” introduced changes deriving from the provisions of article 16, “Measures regarding competition and customer
protection in the postal sector”, and article 33, “Authorisation of the Government to amend the Digital Administration Code
pursuant to Legislative Decree 82 of 7 March 2005”.
Specifically, article 16 amended several parts of Legislative Decree 261/99, strengthening the role of the Postal Market
Regulator, which is authorised to adopt necessary measures to ensure continuity of the universal service, to facilitate
access to aspects of the postal service such as post codes and to ensure that information regarding prices and quality
targets is publicised. Moreover, the postal service's “role in society and in local communities” was highlighted, thanks to
the nationwide presence of its network.
Finally, the provisions of art. 14 of Legislative Decree 261/99 were revised by providing a more detailed description of the
section on claims management in the Quality Charter, including voluntary conciliation procedures. Specifically, the Quality
Charter is required to give a more detailed and clearer description of the timeframes for dealing with claims and the
procedures adopted in managing cases regarding loss, theft or damage of mail, and generally speaking failure to meet
service quality standards17.
Based on the changes made, the criteria for allocating responsibility when more than one operator is involved will need
further clarification.
Art. 33 of Law 69/2009 empowers the Government, amongst other things, to revise the Digital Administration Code
(Legislative Decree 82/2005) regarding: simplification of the adoption and use of the digital signature; the placement of
publicly owned companies and/or companies with majority public ownership on an equal footing with Public Sector entities;
and the regulation of electronic copies.
The Ministry of Economic Development Decree of 26 October 2009, relating to “Provisions regarding identification of
postal operators on mail and related forms”, in an increasingly competitive marketplace, aims to guarantee transparency
and customer protection by requiring postal operators with individual licences or general authorisation to indicate the name
of the company responsible for the service, as well as any categories of product or service provided, on all mail and related
forms as of 2010.
With respect to publisher tariff subsidies, Law 99 of 23 July 2009 relating to “Provisions regarding the development and
internationalisation of companies, and energy issues", ahead of the deregulation of postal services and until reduced-rate
tariffs for sending editorial products have been revised, establishes that “the unit cost on which reimbursement to Poste
Italiane SpA, within the limits of the provisions allocated to the relevant items of the Cabinet Office's own budget is based”
should be equal to “the rate deriving from the current relevant agreement that is most favourable to the payee”.
The impact of this law and the means of compliance are still under examination.
The Antitrust Authority ruling of 15 October 2009 launched an A/413 procedure in order “to determine whether the
Company's actions entailed an abuse of a dominant market position pursuant to art. 82 of the EC Treaty”, with specific
reference to the Posta Time product and participation in certain tenders. Consequently, the Company sought to
demonstrate to the Authority the "proportionality" of its commercial actions and, in the belief that such actions fully comply
with competition legislation, on 1 March 2010 it nevertheless decided to give certain specific commitments aimed at
curbing any anti-competitive behaviour.
The outcome of the subsequent phases of the investigation, which is currently underway, is awaited.
On 9 February 2010, within the scope of its advisory capacity to Parliament and the Government, the Antitrust Authority
highlighted the need, within the gradual process of market deregulation, to pay special attention to the postal sector by
appointing an independent Regulator, which under current legislation is one of the responsibilities of the Ministry of
Economic Development. At the same time, it suggested that this role should be granted – in line with measures already
implemented at national and EU level – to the Antitrust Authority.
17. Elements already contained in the latest version agreed on by Poste Italiane and the Consumers’ Associations.
50
4.1.1 COMMERCIAL OFFERING
Mail
The value added unrecorded mail product, Posta Time, was launched. Thanks to the innovative use of palmtop computers
supplied to delivery staff, this product is able to provided certified proof of delivery dates and times for mailings to
metropolitan areas and provincial capitals.
Availability of the recorded mail product, Raccomandata 1, was extended to include Business customers. The new
product enables customers to send registered mail rapidly and securely (the first attempt at delivery on the next day
after mailing).
The range of ancillary services was increased with the Posta Easy Basic and Posta Easy Full packages, with which Poste
Italiane is able to offer a full service solution for the printing, packaging and preparation of mailings. The Pick up Light18
offering was also extended to Business customers, whilst the Consegna a domicilio product, again targeted at Business
users, was launched. This allows customers to receive registered and unregistered mail at their premises during
determinate time bands and/or on agreed days.
From June it is also possible to activate personalised delivery19 services on line.
A new publishing service, called Consegna Multicopie, was launched. This service enables publishing companies to send
copies of periodicals that are not for general distribution in a single parcel – weighing less than 20 kg – to regular
customers, such as large enterprises, professionals, associations and franchise networks.
Regarding integrated services, in line with the ongoing commitment to create services with high added value, new modular
variations of the Integrated Notification Service were launched, including: the new Area Integrated Notification Service for
customers requiring notification of legal documents sent in original copies and/or signed by hand, with relatively low
volumes; and the Notification by Messenger service, which enables delivery of a true copy of an original deed or order to
an addressee with legal effect.
Finally, Poste Packaging, a new service aimed at Business customers, was launched. This service enables modular
management of the various phases of the delivery of packages weighing up to 5 kg: stock management and micro-logistics,
management of payments, reporting and the management of undelivered items. Customers may choose appropriate
modules in accordance with their needs.
The Postel Group provides communications services for businesses and Public Sector entities. In addition to printing and
enveloping mail, which traditionally represents the Group’s core business, its service offering includes Mass Printing (the
group of services intended for outsourcers of large volumes of mail); Direct Mailing (integrated communications and
marketing services combined with the printing of commercial documentation); Door to Door (corporate support services
for “unaddressed” mail campaigns); and Electronic Document Management by which the Group offers its customers
traditional optical acquisition and storage services, as well as new services such as backup optical filing and electronic
billing; and e-procurement (the management, distribution and supply of stationery, IT products, blank forms, printed matter,
consumables and other products required by Poste Italiane SpA's network of 14,000 post offices).
On 30 September 2009 the Board of Directors approved the acquisition of a 15% interest in the consortium, Poste Contact,
ahead of the subsequent merger with the Poste Link consortium, in which Postel has a 15% stake.
Online services
Online services are provided by an integrated electronic communications platform (NPCE).
Hybrid mail is sent electronically and arrives at its destination in paper form, maintaining the same value as traditional mail.
These services are available via the website www.poste.it and the new website for Business customers www.posta-
18. The service involves the collection of recorded and unrecorded mail of up to 2 kg in weight from the customer’s premises.
19. This relates to services such as Seguimi, services for people changing address, as it enables them to continue to receive all their mail as normal at their
new address even if sent to the old one; Aspettami, which enables mail that isn’t signed-for to be kept for a period of between 1 and 4 weeks; and
Dimmiquando, which enables customers to choose which day of the week to receive Registered and Insured mail.
online.it, as well as via Host-to-Host solutions for companies that need to incorporate electronic mail directly within their
current information and management platforms (intranet/CRM or other).
ForOnline Registered Mail customers who access the New Electronic Communication Platform (NECP) via Host-to-Host,
the Track and Trace (T&T) service is available. Customers can track their own mail and directly check delivery of registered
mail on the interface that is used for accessing the online registered mail service.
Finally, a Digital Certified Date service was launched, which enables customers to digitally stamp documents, thereby
certifying the time and the date without having to go to a post office.
Service quality
Quality targets are established by the Postal Market Regulator and regard delivery times, which must be guaranteed for
certain percentages of mail.
With a Decree issued on 23 November 2009, published in the Official Gazette on 1 December 2009, the Ministry of
Economic Development set “Quality targets for the three-year period 2009-2011 regarding bulk, registered and insured
mail, and standard parcel services”. The Ministry kept the targets for bulk and registered mail and standard parcels at 2008
levels, and introduced a gradual and slight increase for the insured mail target, entailing delivery within three days of
collection.
Quality results compared with the targets set by the Ministry of Economic Development Decree are shown in the table
below.
2008
Prioritary Mail (*)
International Mail (**)
inbound
outbound
Registered Mail (***)
Insured Mail (***)
(*)
(**)
(***)
2009
Delivery within
Target
Actual
Target
Actual
1 day
89.0%
90.6%
89.0%
90.7%
85.0%
85.0%
92.5%
92.5%
94.6%
94.1%
94.4%
98.6%
85.0%
85.0%
92.5%
93.0%
93.6%
93.3%
94.3%
98.1%
3
3
3
3
days
days
days
days
Based on data certified by IZI on behalf of the Ministry for Economic Development.
Based on data certified by IPC - Unipost External Monitoring System (UNEX-Country System).
Monitored by an electronic tracking system.
Philately
The philately market is made up of approximately one and a half million stamp collectors, one of the largest groups of
collectors in Italy. The promotion of philatelic products takes place mainly through philatelic specialists20, who are, among other
things, responsible for managing the supply of philatelic products to the 295 Philately Counters. The products were also
promoted during the year through the more than 2,000 temporary stands, offering philately services, set up for exhibitions
and events during the year, and by the “Spazio Filatelia” shops, which grew in number with the opening of a new store in
Trieste21.
In addition to the usual annual events, the International Philately Festival “Italia 2009”, the most important international
philatelic event to take place in Italy in the last ten years, was held in Rome in October. The festival was organised by Poste
Italiane in collaboration with the FSFI, a federation of the Italian Philatelic Society and the AFIP, the Association of Professional
20. These are dedicated personnel trained to support the promotion of the products offered.
21. Other “Spazio Filatelia” shops are located in Rome, Milan, Venice and Naples.
52
Italian Philatelists, and attended by around 50 postal entities and 80 commercial operators from 15 different countries. The
philatelic exhibition area was divided into the following competition categories: aerophilately, thematic and traditional philately,
maximaphily, postal history and philatelic literature. Of particular interest were 500 collections, some of them on display for
the first time, and books from throughout Europe and the Mediterranean basin, as well as from Canada, the United States,
Argentina, South Africa and Australia.
The range of philatelic products was particularly large, partly due to the International Philately Festival being held at the same
time, resulting in special issues: the Italian language, Sport, Collecting, Music and Europe. As usual, the Programme broke
down into various thematic series including: “20th-century Italian Masters”, “Christmas scenes”, “Italian artistic and cultural
heritage”, “Tourism”, “Motorcycles”, “Made in Italy” and “Institutional bodies”.
Series of stamps commemorating events of particular importance included: the Fifth National Conference on Drug Use; Roma
Capitale; the 125th anniversary of the foundation of the jeweller, Bulgari; San Daniele ham on the 500th anniversary of the first
known documentation for the thematic series “Made in Italy”; the Carabinieri's Cultural Protection Unit for the thematic series
“Institutional bodies”; the 13th World Water Sports Championship; the G8 Summit; and the Museum of San Gennaro’s
Treasure in Naples for the thematic series “Italian artistic and cultural heritage”.
Commemorative series also included stamps marking the two-hundredth anniversary of the birth of Charles Darwin; the
fiftieth anniversary of the death of Don Luigi Sturzo and the thirtieth anniversary of the death of Emilio Alessandrini; and the
four-hundredth anniversary of the death of San Giovanni Leonardi.
Express and Parcels
In order to head off the adverse conditions in the express delivery market, which has been strongly affected by the
economic downturn in Italy, the Company continued to focus on improving margins on domestic products and
strengthening its presence in the international market.
In Italy the Company launched an ancillary service called Time definite, guaranteeing next-day delivery of Postacelere1 plus
and Paccocelere1 plus products to over 700 destinations by 10am in the morning. Trials of the “Pacco voluminoso” option
also began, enabling customers to use the Paccocelere1 plus and Paccocelere3 plus services at no extra charge even if
the parcel dimensions exceed established size limits (140x80x80cm), provided that the parcels are sent from participating
post offices and Postal Network Centres, and are not heavier than the weight limit of 30 kg.
A new Postacelere 1 Plus service called City was introduced in some post offices in Rome and Milan. This enables sameday delivery within the metropolitan area at no extra cost.
The Business Customer offering was added to with the introduction of the Home Box solution, including a pick-up service
and scheduled delivery within 6 days of collection.
Availability of the Pick-up service (an additional service offered in combination with the Postacelere 1 plus, Paccocelere 1
plus and Paccocelere 3 products) was extended to further areas of the country, with the service being offered in 27 major
cities and 16 provincial areas at the end of 200922.
SDA Express Courier SpA as well as being one of the leading operators in the Italian Express Delivery sector, especially
regarding distribution of the postal products, domestic and international Paccocelere and Standard and J+3 Parcels, also
offers integrated solutions for distribution, logistics and catalogue sales.
During 2009, in response to the difficult economic situation, a range of measures were adopted at both operating, via
process improvements, and commercial level. In the latter case, the domestic Express Delivery offering has been extended
with the launch of the Economy service, a new parcels service that gives businesses an opportunity to boost trade by
keeping down shipping costs. This service, which is only available online, takes three working days on average and allows
customers to save about 20% on the national Express Delivery rate.
The website “mySDA”, which extends all the online functions previously available only to medium and large shippers to
"small" customers, was also launched during the year. Access to this facility is available round-the-clock via the internet,
without any need to contact the Call Centre.
22. Milan and the neighbouring province, including Monza, Rome and province, Florence, Prato, Salerno, Verona, Vicenza, Bari, Bologna, Catania, Turin, Varese,
Brescia, Lecce, Naples, Palermo, Pistoia, Rimini, Taranto, Genoa, Parma, Modena, Fermo, Ancona, Perugia, Pescara and Cagliari, as well as areas of the
provinces of Latina, Pisa, Ferrara, Macerata, Padova, Biella, Caserta, Lodi, Teramo, Ascoli Piceno, Potenza, Avellino, Cosenza, Crotone, Enna and Trapani.
As part of a programme to reorganise the Gruppo Poste Italiane in order to maximise synergies between Group companies,
it was decided to contribute Poste Italiane's shareholding in Poste Italiane Trasporti to the Company. This will take place in
the early months of 2010.
Online services
With regard to e-commerce, the Company continued in its efforts to offer tailor-made solutions for businesses who use
Postecommerce, the integrated offering that, among its various functions, allows customers who make many shipments
during the year to track their parcels and express delivery products on line.
Service quality
The service quality achieved by Express and Parcels is shown in the table below.
With respect to the Standard Parcels product, which is provided under the Universal Service Obligation, results are
compared with the "Quality targets for the three-year period 2009-2011 regarding bulk, registered and insured mail and
standard parcels" set by the Ministry of Economic Development Decree of 23 November 2009.
The targets for Postacelere and Paccocelere are contractually binding and were established by SDA and the Parent
Company.
2008
Delivery within
Standard Parcels
Postacelere Express Delivery
Paccocelere
Target
2009
Actual
Target
Actual
97.4%
5 days
94%
95.8%
94%
1 day
90%
94.4%
90%
94.3%
3 days
98%
99.1%
98%
98.7%
All products are monitored with an electronic tracking system.
Other companies
Poste Italiane Trasporti SpA is a road haulier that operates primarily for the Parent Company and carries postal
products over medium to long distances, in addition to providing postal product clearing services at the Bologna and
Rome Hubs.
During 2009 the quality of transport registered a generally high percentage of punctuality, regarding arrival and departure
times as well as the level of efficiency of the postal product clearing services at the Hubs. The company continued to
provide country-wide transport services for customers outside the Group, which met with a positive response from
users.
Total revenues for the year, deriving almost entirely (99.6%) from payments for services provided to the Parent
Company, registered a decrease of 9.6% with respect to 2008 (31.2 million euros in 2009 compared with 34.5 million
euros in 2008) primarily due to a change in contractual tariffs regarding the national network and a contraction in special
runs due to a reduction in traffic volumes. In line with the reduction in revenues, 2009 witnessed a 15.8% fall in the
cost of goods and services (24.6 million euros in 2009 compared with 29.2 million euros in 2008) essentially connected
to renegotiation of the main supply contracts. Profit for the year rose from 258 thousand euros in 2008 to 803 thousand
euros in 2009.
Mistral Air Srl provides air mail services to Poste Italiane SpA in addition to air freight for other customers, in order to
cover its fixed overheads.
In 2009 the new activities defined in the Company's development plan were stepped up and the operations of the leading
Italian postal air transport carrier within the Parent Company's air network were expanded, with the introduction of nine
54
new routes during the year (Rome-Brescia round trip, and Cagliari, Bari, Ancona and Pescara to and from the Brescia Hub).
In this context the Company replaced the BAe146 fleet, previously used on behalf of TNT (whose service contract was
terminated in July 2009), with two ATR42 Cargo aircraft which have joined the Quick Change Boeing B737-300 aircraft used
for the Parent Company's postal network night flights.
However, operations during the year were also influenced by the slowdown in passenger traffic that began in 2008 and
continued throughout 2009, primarily due to the economic downturn that has strongly impacted the Company's business.
Overall, operating results report a 3.2% decrease in sales and service revenues (51.6 million euros in 2009 compared with
53.3 million euros in 2008) and a significant 14.3% reduction in the cost of goods and services (47.5 million euros in 2009
compared with 55.4 million euros in 2008), partly thanks to careful cost management.
The Company was able to cut its operating loss from the 9.7 million euros of 2008 to 2.3 million euros in 2009, in line with
the turnaround plan prepared by management during 2008. Negative equity of approximately 0.7 million euros reflects the
impact of the two injections of capital carried out by the Parent Company.
Despite the significant improvement in operations reported above, in February 2010 it was necessary to cover the losses
made in 2009, as required by art. 2482-ter of the Italian Civil Code (capital below the legal minimum). The General Meeting
of shareholders approved the injection of a further 3.5 million euros into the company, thereby meeting the requirements
of art. 2482-ter.
Consorzio Logistica Pacchi ScpA, which is a wholly owned subsidiary of the Group (51% by Poste Italiane SpA, 39% by
SDA Express Courier SpA, 5% SDA Logistica Srl and 5% Mistral Air), continued to coordinate, supplement and supervise
consortium members' operating activities, and to engage in activities relating to the sorting, handling and delivery of
Parcels that Poste Italiane SpA, in its role as a Universal Service provider, is required to carry out. The Consortium is also
responsible for air mail letter and newspaper services (night flights) between seven Italian airports provided by the
consortium member, Mistral Air, and for the integrated logistics and records management services provided by the
consortium member, Italia Logictica Srl. In order to achieve greater integration of the Group’s activities, from May 2008
responsibility for Postacelere 1 Plus, Paccocelere 1 Plus and related services was transferred to the Consortium from SDA
Express Courier.
Italia Logistica Srl
This company, which was established on 1 August 2008 following the agreed merger of Omnia Logistica (a Ferrovie dello
Stato Group company) and SDA Logistica srl, is jointly owned by FS Logistica SpA (a Ferrovie dello Stato Group company)
and SDA Express Courier SpA, and offers integrated and multimodal logistics services23.
2009 saw expansion of traditional businesses, partly due to the lease of three divisions that provide integrated logistics
services from Obiettivo Logistica SpA, and the acquisition of nine important contracts. International industrial transport (by
sea and air) of logistics activities for Fiera Milano SpA was also launched, with a view to diversifying into other logistics
sectors with higher added value.
Operations were affected by the general downturn in the freight transport sector, as well as the impairment of certain
doubtful accounts and part of the value of goodwill allocated to the transport and multimodal logistics businesses.
As multimodal transport activities, deriving from the acquisition of the Omnia Logistica division, have only been operating
since 1 August 2008, any comparison between the two years is affected by the change in activities.
The value of production amounts to 73.2 million euros, an increase of 58.6% compared with 2008 (revenues of 46.2 million
euros in 2008), benefiting from the effects of the acquisition of new contracts. Costs were up 63.5%, rising from 45 million
euros in 2008 to 73.6 million euros in 2009, and the operating result deteriorated, with a loss of 5.4 million euros reported
in 2009 compared with operating income of 0.3 million euros registered in 2008.
23. The company only began offering multimodal logistics services from 1 August 2008, following its acquisition of Omnia Logistica.
4.1.2 OPERATING RESULTS
MAIL AND PHILATELY
Volumes (€000)
Revenues (€m)
2008
2009
Var. %
2008
2009
Var. %
Priority Mail
1,471,029
1,225,295
(16.7)
1,049
873
(16.8)
Bulk Mail
1,708,885
1,564,006
(8.5)
935
855
(8.6)
Total Unrecorded Mail
3,179,914
2,789,301
(12.3)
1,984
1,728
(12.9)
251,176
253,564
1.0
834
911
9.2
36,797
33,928
(7.8)
203
193
(4.9)
287,973
287,492
(0.2)
1,037
1,104
6.5
Registered Mail
Insured Mail and Legal Process
Total Recorded Mail
Philatelic products and other basic services
n/s
n/s
181
211
16.6
Integrated services
45,073
70,702
56.9
217
260
19.8
Digital and multi-channel services
17,867
15,961
(10.7)
77
73
(5.2)
(14.2)
Direct Marketing
1,437,303
1,258,183
(12.5)
331
284
Unaddressed Mail
590,858
579,358
(1.9)
32
31
(3.1)
Services for Publishers
969,604
881,848
(9.1)
177
153
(13.6)
8.6
8.4
(2.3)
4,045
3,852
(4.8)
219
232
5.9
70
67
(4.3)
247
220
(10.9)
Post Office Box rental
Total market Revenues
including Philately Products and Revenue Stamps
Electoral subsidies
Publisher tariff subsidies
Total Mail and Philately
(*)
Postel Group - External revenue
6,528,592
5,882,845
(9.9)
4,362
4,139
(5.1)
-
-
-
241
217
(10.0)
From 2009 notices of receipt for Registered Mail have been treated separately, with priority mail volumes (2008 and 2009) also including these items.
(*)
Overall mail volumes, including items handled by Postel and relating to Promoposta (40 million items), amount to approximately 5.9 billion items at 31
December 2009.
Continuation of the recession that began in 2008 resulted in a further decline in economic activity across all sectors of
the real economy in 2009, including the postal market, which is already contracting and subject to intensified
competition as a result of the gradual opening up of the market. At international level the postal industry is undergoing
radical transformation and the volumes of traditional postal services are set to gradually decline. Indeed, 2009
registered a drop in the volume of postal products, with 5,883 million items handled, compared with 6,529 million in
2008 (down 9.9%) essentially due to a reduction in Unrecorded Mail, which registered a 12.3% decrease in volumes
(391 million fewer items) and Business Mail (Direct Marketing and Unaddressed Mail), which fell by 9.4% (191 million
fewer items).
Market revenues, before publisher tariff and electoral subsidies (220 and 67 million euros, respectively), amount to
3,852 million euros, compared with 4,045 million euros in 2008 (down 4.8%).
The fall in Unrecorded Mail volumes is reflected in revenues, which are down 12.9% from 1,984 million euros in 2008
to 1,728 million euros for 2009.
56
Revenues from Recorded Mail registered an increase of 6.5% (up 67 million euros), whilst volumes substantially held
up (down 0.2%, corresponding to 481 thousand fewer items than in 2008). This performance derives from the different
product mix that emerged during the year and the changes made to the tariff structure, arising from application of the
Ministry of Economic Development Decree of 19 June 2009, which regulates the new Registered Mail and Insured
Mail offering.
Increased sales of the Raccomandata 1 product, whose growth was driven by the greater number of enabled post
offices and an increase in Legal Process services, offset the reduction in more traditional registered mail products
(Registered and Insured), which incrementally benefited revenues due to higher unit tariffs.
Integrated services for the delivery of legal process and tax demands continued to make a positive contribution to
revenues in this sector, recording increases of 56.9% in volumes (up 26 million items) and 19.8% in revenues (up 43
million euros) compared with 2008, thanks to deliveries of tax demands and Integrated Notification Service registered
mail.
Digital and multi-channel services saw a reduction in revenues compared with 2008, reflecting the natural decline in
the more traditional services, such as telegrams and certofax. Overall, the segment saw a 5.2% drop in revenues
(equivalent to almost 5 million euros), due to a 10.7% decrease in volumes collected (1.9 million fewer items)
compared with 2008.
As already mentioned, Business Mail registered a decline, as it was strongly affected by the current global recession.
In particular, Direct Marketing, on the back of the sharp downturn in the advertising market during 2009, reported a
reduction in revenues of 47.5 million euros (down 14.2%) with respect to 2008, compared with a decrease of 179
million items (down 12.5%).
The weakness of the advertising market was also reflected in the market for publications. Publishing services
registered falls in volumes and sales of 9.1% and 13.6%, respectively, compared with 2008, whilst publisher tariff
subsidies also declined (down 10.9% on 2008), reflecting efforts to cut public spending.
This form of subsidy is also subject to uncertainty over the effective recoverability of amounts payable to Poste Italiane
SpA by the State to cover the reduced-rate tariffs offered to publishers.
Philately revenues, including those generated by the sale of Revenue Stamps, amount to 232 million euros (219
million euros in 2008). The 2008 Philately Programme included 52 issues with 77 stamps and 6 postcards, with a value
of 66.65 euros (51 issues with 63 stamps and 1 postcard, with a value of 50.25 euros in 2008). Stamps continue to
be a leading product, and register excellent performances even in times of recession. Philately products connected
with stamps(folders, postcards, etc.) have maintained a steady sales performance.
Postel Group’s third-party revenues amount to 217 million euros (241 million euros in 2008). This performance reflects
reduced volumes in the Mass Printing and Direct Marketing sectors deriving primarily from stiff competition and the
ongoing economic downturn, and was only partly offset by the robust performance of the new Electronic Document
Management business (earnings rose from 14.5 million euros in 2008 to 24 million euros in 2009).
However, despite the economic downturn, the company posted a generally good performance, and is geared towards
maintaining business development through innovation and diversification of lines of business and by constantly paying
attention to improving the efficiency of operating processes and product support.
EXPRESS DELIVERY, LOGISTICS AND PARCELS
Volumes (€000)
2008
Revenues (€m)
2009
% inc./(dec)
2008
2009
% inc./(dec)
10,681
9,529
(10.8)
2,357
2,248
(4.6)
110.2
94.3
(14.4)
40.6
37.6
(7.4)
13,038
11,777
(9.7)
150.8
131.9
(12.5)
33,538
31,657
(5.6)
234.1
219.8
(6.1)
Postacelere
Domestic
International
Total Postacelere
Domestic Express Delivery
International Express Delivery
2,004
2,236
11.6
17.5
17.8
1.7
Tailor-made Services
n/r
n/r
n/a
38.0
36.1
(5.0)
Other revenues
n/r
n/r
n/a
16.3
14.0
(14.1)
Total SDA Express Courier SpA - External revenue
35,542
33,893
(4.6)
305.9
287.7
(5.9)
Total Express Delivery
48,580
45,670
(6.0)
456.7
419.6
(8.1)
n/r: not recordable as such data relates to tailor-made services supplied to banks and insurance companies that cannot be calculated in volume terms.
n/a: not applicable.
Apart from a few signs of recovery during the last quarter of the year, the Express Delivery business was strongly affected
by the current economic downturn in Italy. Specifically, the difficult economic situation gave rise to a widespread loss in
consumer confidence leading to lower consumption and therefore a reduction in industrial output that negatively impacted
the whole sector. This resulted in a decline in revenues compared with the previous year. Moreover, price cutting by
competitors, aimed at countering the negative effects of the recession, led to a substantial fall in average unit revenue.
In 2009 the Express Delivery segment reported a reduction in deliveries (volumes down 6% on 2008), due to the downturn
in industrial output, as well as a downtrend in the average sales price. The combination of these two factors had a negative
impact on the sector's revenues, which fell by 8.1% compared with 2008, corresponding to a decrease of 37.1 million
euros and a 2.9 million reduction in the number of items delivered. These reduced earnings include 18.9 million euros
regarding the Postacelere segment, especially the domestic market, and 18.2 million euros relating to a fall in deliveries
made by SDA Express Courier.
Specifically, the Domestic Express Delivery product reported a 5.6% drop in volumes and a 6.1% decline in related
revenues, due in large measure to the difficult state of the market entailing keen competition, especially regarding prices.
However, if the contraction of around 10%24 in the domestic transport market compared with 2008 is taken into account,
this performance confirms the Group's resilience and the appropriateness of the strategy implemented.
International Express Delivery bucked the trend reported by other products, registering a slight 1.7% increase in revenues
compared with 2008, due to the agreement with UPS.
In order to counter the negative factors that influenced results, during the year SDA Express Courier implemented an
initiative to reduce and optimise the cost of goods and services (366 million euros in 2009 compared with 385 million euros
in 2008), which helped to limit the effects of the above-mentioned decline in revenues. The company reported a net loss
of 23.5 million euros (compared with the net profit of 302 thousand euros reported in 2008).
24. Source: DATABANK.
58
Volumes (€000)
Revenues (€m)
2008
2009
% inc./(dec)
2008
2009
% inc./(dec)
(23.2)
Universal Parcels Service
Domestic Parcels
8,235
6,952
(15.6)
29.8
22.9
Parcels - international export
354
405
14.4
15.3
15.6
2.0
Parcels - international import
295
275
(6.8)
3.7
3.6
(2.7)
1.5
1.5
-
50.3
43.6
(13.3)
25.6
22.2
(13.3)
75.9
65.8
(13.3)
Other revenues
Total
8,884
7,632
(14.1)
Publisher tariff subsidies
Total Parcels
8,884
7,632
(14.1)
Universal Parcels Service revenues, before Publisher tariff subsidies, amount to 43.6 million euros, marking a decline of
13.3% on 2008.
4.2 FINANCIAL SERVICES
The Financial Services offering includes current accounts, payment services, financial products (including post office
savings products such as Savings Books and Interest-bearing Postal Certificates distributed on behalf of Cassa Depositi e
Prestiti) and third-party loan products. The subsidiary, Poste Tutela SpA, provides backup services for the above-mentioned
activities and is responsible for the organisation, coordination and management of funds and valuables in all branches and
post offices throughout the country.
With regard to the European Commission’s Decision regarding alleged State aid, given in the form of remuneration paid by
the Ministry of the Economy and Finance in return for the use of current accounts to attract deposits under the agreement
of 2006, and which resulted in the Company having to return, as early as 2008, the amounts received from the Ministry,
on 1 December 2008 the Company filed an appeal before the European Community’s Court of First Instance requesting
cancellation of the Commission's decision of 16 July 2008.
On 2 July 2009 the Commission submitted its counter-arguments (notified to the Company on 7 July 2009), thus marking
the start of the Court’s initial investigation. Announcement of the date of a hearing is awaited, which is unlikely be held
before the summer of 2010, unless the Court decides to speed up the preliminary investigation.
Since 1 January 2008 current account deposit investments have been remunerated at a floating rate calculated on the basis
of a basket of treasury bonds and indices, in accordance with the method established by the European Commission in its
Decision of 16 July 2008 and laid down in a related agreement signed on 25 March 2009. The new agreement, which
governs the method of calculating the rate of return on current account deposits held with the Ministry of the Economy
and Finance, was rendered executive by the Ministerial Decree of 7 April 2009, and its effectiveness has been back-dated
to 1 January 200825.
In 2008 the Company was accused of infringing certain provisions of Legislative Decree 231/2001. The Company was
charged with having allowed in 2003 – in the absence of appropriate organisational and management models to prevent
such actions – the false overestimate of postal savings deposits in order to earn unwarranted income. Whilst it is currently
25. From 1 January 2008, the rate of return is calculated on the basis of the weighted average of average annual returns on government securities or indices,
in accordance with the following basket and related weightings:
- 5-year Long-term Treasury Certificates (BTP), weighting 90%;
- 3-month Short-term Treasury Certificates (BOT), weighting 5%;
- EONIA index (Euro Overnight Index Average ), weighting 5%.
impossible to predict the outcome of the proceedings, which are still underway before the Court of Naples, it should be
noted that the economic and commercial effects of the disputed case have been reflected in the financial statements of
previous years, and that Poste Italiane SpA has been implementing appropriate organisational and management models in
line with the provisions of Legislative Decree 231/2001 for some time.
Following the results of the Bank of Italy’s inspection of BancoPosta in 2008, in April 2009 the Company responded to the
inspectors’ findings with its own observations and proposals regarding the initiatives it intends to take in order to resolve
the problems identified, which will be periodically provided and continuously updated.
In a letter dated 13 August the Supervisory Authority acknowledged the Company's intention to undertake necessary
corrective measures regarding BancoPosta's organisational and accounting structure in order to bring it fully into line with
the relevant legislation, and also advised Poste Italiane to continue its planning and/or implementation of projects aimed at
overcoming the specific issues that emerged during the inspection. On 25 February 2010 the Company notified the Bank
of Italy on the state of progress as of 31 December 2009 of the planned activities.
In tandem with these activities, a joint working group was set up, including the Bank of Italy, the shareholder, the Ministry
of the Economy and Finance, and the Company, in order to assess the best means for identifying legally independent
assets for BancoPosta, in order to apply prudential supervision requirements and protect BancoPosta's creditors.
Regarding investment services and with reference to the EU’s “Markets in Financial instruments Directive” (MiFID),
project activities aimed at introducing consultancy services in conjunction with the investment services already provided
continued during 2009. The activities carried out enabled definition of the content of the service model, means for
supplying the network and functional requirements for the IT backup system. Moreover, in November 2009, with a view
to updating and expanding the knowledge base regarding customers, a customer profiling process was launched entailing
use of a new questionnaire that has been brought into line with the relevant regulations, and "adequacy tests" for
investment transactions were drawn up.
With a view to strengthening the provision of transparent and accurate information to customers, the Company has also
started up training courses for staff that work in the distribution network, aimed at boosting specialist expertise relating to
the offer of investment products and ensuring full awareness of the approach behind the MiFID and the rules of conduct
introduced.
Regarding payment services, following the regulations issued by Directive 2007/64/EC26 of the European Parliament and of
the Council – Payment Services Directive (PSD) - Poste Italiane is in the process of adapting to the new requirements; the
initiatives underway include a review of the relevant corporate processes, as well as updating of IT and contractual
procedures.
Following the issue of new regulations by the Bank of Italy regarding the "Transparency of transactions and banking and
financial services and the fairness of relations between intermediaries and customers"27, the Company has implemented
measures aimed at achieving full compliance with the new requirements.
Also with a view to improving the quality of customer relations, Poste Italiane has joined the Financial and Banking
Mediator, a banking association dedicated to the settlement of banking, financial and corporate disputes, which provides
its own mediation, ombudsman and arbitration services in order to offer customers alternative means for settling disputes
rather than entering into legal procedures.
In addition, the Company, which is expressly identified as an intermediary with regard to the activities of BancoPosta,
26. The Cabinet Meeting of 28 October 2009 approved the draft Legislative Decree, aimed at implementing Directive 2007/64/EC in Italy, regarding payment
services in the internal market. The Directive sets out provisions regarding a wide range of means of payment used by customers, with a view to:
- increasing customer protection and improving the transparency of the related conditions and access to information;
- standardising rights, obligations and disclosure requirements for both users and Poste Italiane;
- promoting widespread improvements to the efficiency of the system, including via a further reduction of the time it takes to execute transactions
(compared with the SEPA);
- increasing competition.
27. The new regulations, issued on 29 July 2009 and expected to come into force on 31 December 2009, "pursues the objective, whilst respecting
independent negotiation, of reporting the key elements of the contractual relationship and its variations to customers, thereby encouraging competition
in financial and banking markets."
60
participates in the new system for reaching out-of-court settlements in disputes that may arise with customers, called the
Financial and Banking Ombudsman, and has provided the relevant information to customers.
Regarding anti-money laundering and anti-terrorism initiatives, a project was launched in July 2009 that will continue
throughout 2010, aimed at strengthening certain operational and monitoring processes. The following initiatives were
implemented:
• full computerisation of the notification procedure regarding suspect transactions;
• new information gathering questionnaires regarding "adequate checking”;
• computerisation of the “adequate checking” process and “anti-terrorism” checks;
• new risk profiling procedures;
• new standard and stepped-up monitoring procedures.
Design activities regarding business continuity for BancoPosta (Business Continuity and Disaster Recovery) continued
during 2009. Specifically, design activities were launched regarding the installation, customisation and implementation
of a new application to manage all the technical and operating procedures relating to Business Continuity and Disaster
Recovery. A new project was also launched to comply with the higher standards set by the Bank of Italy regarding
“institutions of systemic importance”. As part of the project, an operating test was carried out, with organisation by the
CODISE (Service Continuity) emergency committee, which is coordinated by the Bank of Italy in collaboration with the
CONSOB.
On 28 December 2009 the Antitrust Authority completed an investigation into whether Poste Italiane had abused its
dominant market position in the collection and payment services sector, without ruling that an infringement had taken place
or imposing any penalty. The Authority accepted and made binding the commitments submitted by the Company regarding
the payment of bills, including via alternative channels.
In 2009 the range of transactional products saw the structured entry of Poste Italiane into the business services sector and
consolidation of the BancoPosta Click account.
In April, with the launch of “In Proprio” accounts designed for self-employed professionals and small and medium
enterprises, the Company changed its product strategy by replacing its undifferentiated Conto Office with four different
types of account, tailored to meet the varying requirements of the relevant segments: “Web” (primarily for self-employed
professionals and small companies who operate online); “Pos” (for retail traders and craftspeople); “Condominio” (for
administrators of apartment buildings); and “Base” (for small enterprises and in general for people who opt for simple
transactions dealt with at the post office).
This commitment to offer tailor-made, convenient and transparent solutions, which respond to varied customer needs,
enabled the BancoPosta In Proprio account to win first prize at the MF Innovation Award 2009, promoted by Milano
Finanza, as best new product in its category.
The Electronic Money sector continues to be strongly led by the Postamat Maestro card (over 6 million cards issued
at 31 December 2009) and the Postepay card ( 5.6 million cards in circulation at 31 December 2009). Taking advantage
of the NewGift platform, the range of products was extended by identifying and penetrating high potential niche
markets via products such as Postepay Twin, a kit of 2 “twin cards” aimed at immigrant customers, enabling
worldwide money transfers without using cash. Regarding the application of new technologies to payment cards,
Postepay Lunch was also created. This electronic payment card is aimed at companies which offer luncheon vouchers
to their staff. The Postepay Lunch card combines all the services normally provided by a Postepay card with luncheon
voucher management.
In its first year of operation the first external top-up channel for Postepay, comprising more than 28 thousand SISAL betting
shops, was a great success, with over 3 million cards topped up.
The partnership with Banca Sella regarding the commercialisation of physical POS purchases has widened distribution at
national level at the same time as the launch of the BancoPosta In Proprio account. Over 2 thousand POSs were activated
during the year, registering transaction volumes of more than 13 million euros.
In the Money Transfer segment, a money transfer service via internet and mobile phone was launched in November in
collaboration with MoneyGram. Thanks to exclusive PosteMobile technology and BancoPosta means of payment, a new
mobile money transfer service was introduced for the first time in Italy, alongside the possibility of transferring money via
Poste Italiane's Web Banking platform. For both types of transaction (via mobile phone and the internet) the transferred
amount is available within only 10 minutes in any one of 186 thousand retail outlets.
Regarding Eurogiro transfers, the new Eurogiro Cash International (ECI) product was introduced for the transfer of urgent
funds to be paid in cash to the beneficiary.
In 2009 the consumer credit sector registered growth for Prontissimo personal loans. The performance of this product,
which was launched in 2008 and is not necessarily connected to a current account, is particularly significant as it was
achieved against a backdrop of substantial market slowdown.
In April the “Quinto BancoPosta” product was also extended. This personal loan, which is secured by the borrower’s salary
and was launched in 2008 in 225 post offices, is aimed at pensioners, people in full-time employment and INPDAP
pensioners. Moreover, given its excellent potential, the number of post offices equipped to sell the product was raised to
approximately 1,400.
Following the launch of ECB floating rate mortgages at the beginning of the year, in April the range of BancoPosta
mortgages on offer was extended to take in:
• the transfer free of charge of a mortgage issued by another bank (BancoPosta Surroga);
• replacement of an old mortgage and the application for additional cash (BancoPosta sostituzione + liquidità);
• mortgages making available a sum of cash on current accounts (Mutuo BancoPosta liquidità).
Moreover, as part of initiatives relating to application of Law Decree 185/2008 28, from December Government grants may
be paid into the accounts of mortgage holders entitled to such benefits, pursuant to the above decree.
The strategic importance of Postal Savings deposits for the Company and Cassa Depositi e Prestiti was confirmed with the
renewal of the agreement that expired on 31 December 2008. This governs the service for managing, issuing and
redeeming Interest-bearing Postal Certificates and the service for managing Postal Savings Book deposits and withdrawals.
Both parties decided to review the conditions in the light of guidelines issued by the European Commission, as well as
with regard to changes in financial market conditions, in order to achieve a contractual framework for 2009 that better
meets their mutual requirements. The agreement that was signed enabled taking best advantage of the copious efforts of
the Company's commercial departments in order to meet demanding investment targets.
A project, carried out in collaboration with Cassa Depositi e Prestiti, regarding the Post Office Savings Book Card was also
completed. This led to the launch in mid-November of a new electronic card linked to standard Personal Savings Books.
The Post Office Savings Book Card enables withdrawals from all ATMs in the Postamat circuit, as well as payments and
withdrawals at post offices.
In the investment products sector, Poste Italiane has responded to the climate of uncertainty by guaranteeing the
protection of investors from counterparty risk, thus limiting the range of bond issuers handled to those located in Italy.
Again in order to protect customers, the offer of BancoPosta bonds focuses on a large fixed-rate component, “Tasso Fisso
Plus”. This product involves payment of a fixed annual rate of interest, with the possibility of receiving an additional
payment at maturity linked to the performances of three international equity indices (DJ Euro STOXX 50, Standard & Poor’s
500 and the Hang Seng Index). The first plain vanilla bond, “Tasso Fisso BancoPosta 4.40%” was also distributed during
the year. This turned out to be so successful that its distribution had to be terminated earlier than planned. This product
offers annual fixed-rate interest payments, which are unaffected by financial market trends.
Activities in the Public Sector and Corporate segments continued to be aimed at enhancing the Company’s range of
integrated payment collection services and the related electronic reporting. This saw the Company operate in accordance
28. Regarding non-fixed rate mortgages granted before 31 October 2008 to physical persons for the purchase, construction or renovation of a principal
dwelling, art. 2 stipulates that the instalments to be paid during 2009 should be calculated by reference to the higher of an interest rate of 4% and the
contract rate on the date the contract was signed, and in any event for an amount no greater than the sum stated in the current contract conditions. The
difference between the amounts due from the borrower pursuant to art. 2 and the instalments to be paid in accordance with the mortgage contract signed
is charged to the State.
62
with a number of important agreements with: Equitalia SpA regarding management of payment and reporting for bills paid
via postal channels; Calabria Regional Authority, regarding data transmission for payment of car taxes for 2009; Lazio
Regional Authority, regarding provision of payments to the unemployed as part of an initiative called Minimum Guaranteed
Income; and the Electricity Sector Compensation Fund to enable provision of gas rebates to underprivileged families.
The pilot phase of the electronic billing service regarding trading relations with the Public Sector provided for by the 2008
Budget Law was launched. In addition, the agreement with the Ministry of the Economy and Finance regarding the
Treasury Management Service was renewed, as was the agreement with INPDAP regulating the payment of pensions.
In terms of loan products, with a view to extending the range of services offered to companies, Poste Italiane created
short-term loan products providing cash advances against invoices.
Online services
In 2009 BancoPosta Online, the web banking service offered in combination with BancoPosta retail accounts, again
chalked up a high number of unique visits by customers who carry out transactions on line, with 842 thousand
consumer customers (747 thousand at the end of 2008) and 160 thousand business customers (154 thousand at the
end of 2008). The Bolletino Online (the online payment of bills) once more proved to be one of the most popular
services, with approximately 2.7 million bills paid on line during 2009 by consumer customers (2.2 million in 2008)
and more than 630 thousand by business customers (almost 495 thousand in 2008). The number of web transactions
was also significant, including almost 1.5 million online transfers (1.2 million in 2008) and 5.3 million phone top-ups
(4.5 million in 2008).
The number of customers using e-commerce payments, which is a service for VAT registered BancoPosta account
holders regarding companies selling goods and services on the internet, exceeded 500 and is a major component of
the integrated “Postecommerce” offering.
Activities continued during 2009 to enhance and optimise the BancoPostaImpresa Online channel with the addition
of various services, including bulk top-up of all Postepay cards, whereby major customers, such as gaming
companies and banks, can top up prepaid cards electronically after having collected payments from their customers.
A new function was added to the F24 tax form service, which enables tax consultants (accountants, trade
associations, etc.) to carry out the bulk payment of their clients’ taxes via the BancoPostaImpresa Online channel,
and receive confirmation of payment. As well as eliminating the risks connected with delivery, the new system
provides customers with document that is valid for tax purposes, may be easily and rapidly obtained and offers a high
level of data protection.
Poste Tutela SpA
Poste Tutela operates in the private security market, in particular in the segment comprising the following
services:
• money transfer (transport, security escorts, safe custody, the counting of valuables);
• fixed and mobile surveillance;
• protection of sensitive information.
Since 2006 the Company has also provided transport and escort services for "postal valuables" (including Postage
and Revenue Stamps, Interest-bearing Postal Certificates and Savings Books, and Valuable Parcels).
The company's workforce consists mainly of technical staff, qualified to provide prevention and protection
services in the workplace.
BancoPosta
Revenues
(€m)
2008
2009
% inc./(dec)
Current Accounts
Bills
Income from investment of customer deposits
Other revenues from current accounts and prepaid cards
Money Transfers (*)
Postal savings and investment
Post Office Savings Books and Certificates
Government securities
Equities and bonds
Life Assurance policies
Investment funds
Securities Deposits
Delegated services
Loan products
2,545
611
1,383
551
82
1,863
1,364
12
229
211
20
27
190
70
2,537
623
1,320
594
78
2,004
1,600
8
151
218
2
25
202
181
(0.3)
2.0
(4.6)
7.8
(4.9)
7.6
17.3
(33.3)
(34.1)
3.3
(90.0)
(7.4)
6.3
n/s
31
37
19.4
4,781
5,039
5.4
31 Dec 2008
31 Dec 2009
% inc./(dec)
33,723
81,801
185,543
34,741
91,120
192,618
3.0
11.4
3.8
Other products
(**)
Total revenues
(*)
This item includes all revenues from domestic and international money orders and inbound and outbound Eurogiros.
(**)
This item includes revenues from tax collection forms and tax returns, and revenue stamps.
Deposits
(€m)
Current Accounts (*)
Post Office Savings Books (**)
Interest-bearing Postal Certificates
(*)
(**)
(**)
Average deposits for the period.
Deposits include accrued interest for the period.
Number of transactions
(€000)
Bills processed
Domestic postal orders
International postal orders
Inbound
Outbound
Pensions and other standing orders
Tax services
2008
2009
% inc./(dec)
580,364
9,391
3,188
1,742
1,446
88,717
10,468
548,659
8,647
3,230
1,745
1,485
87,461
11,531
(5.5)
(7.9)
1.3
0.2
2.7
(1.4)
10.2
31 Dec 2008
31 Dec 2009
% inc./(dec)
5,383
300
6,073
4,554
5,526
340
6,139
5,593
2.7
13.3
1.1
22.8
Volumes
(€m)
Number
Number
Number
Number
of
of
of
of
customer Current Accounts
Credit Cards
Debit Cards
Prepaid Cards
64
BancoPosta's revenues are up 5.4% from 4,781 million euros in 2008 to 5,039 million euros in 2009. This increase is
essentially due to the good performances registered by Post Office savings and loan products.
In particular, revenues from current accounts held up reasonably well, decreasing by 8 million euros (down 0.3%) compared
with 2008, reflecting the combined effect of lower revenues from the investment of deposits (down 4.6%), slightly offset
by increased revenues from the processing of bills and ancillary current account services. Revenues from the processing
of bills are up 2.0%, which despite a reduction in the number of bills processed (549 million in 2009, compared with 580
million in 2008), reflect a 10-cent increase in bill payment fees from 1 October 2008 29. Income from the investment of
current account deposits fell from 1,383 million euros in 2008 to 1,320 million in 2009, despite a 3.0% rise in average
deposits (33.7 billion euros in 2008 compared with 34.7 billion euros in 2009). This was essentially due to the reduction in
the average yield from the portion of current account deposits invested at the Ministry of the Economy and Finance
(income down from 356 million euros in 2008 to 214 million euros in 2009), which fell by 1.34% from 4.27% in 2008 to
2.93% in 2009. As described above, this investment is remunerated at a floating rate in accordance with an agreement
with the Ministry of the Economy and Finance, which became effective with a Ministerial Decree of 7 April 2009 and is
valid until 31 December 2010.
Other revenues from current accounts increased by 7.8% from 551 million euros in 2008 to 594 million euros in 2009. This
was a result of an increase in the number of current accounts (up from 5.4 million at 31 December 2008 to 5.5 million at
31 December 2009) and the steady growth of the electronic money segment, which benefits from special promotions
aimed at encouraging the purchase and use of new electronic means of payment.
Revenues from Money Transfers decreased 4.9% as a result of the fall in the number of domestic payments (Domestic
Money Orders), which decreased from 9.4 million in 2008 to 8.6 million in 2009, representing a 6% decline in earnings (59.6
million euros in 2008 compared with 56 million euros in 2009). However, the international segment (Eurogiro and
Moneygram) registered a slight 0.4% rise in revenues (22.4 million euros in 2009 compared with 22.3 million euros in 2008).
The traditional savings segment (the distribution of Interest-bearing Postal Certificates and Post Office Savings Books)
performed very well, registering an increase in revenues of 17.3% (1,600 million euros in 2009 compared with 1,364 million
euros in 2008), due to the results achieved in terms of net inflow, which totalled 5,537 million euros during the year. In
detail, total Post Office Savings Books deposits were 91.1 billion euros, marking an increase of 11.4 % compared with the
81.8 billion euros of 31 December 2008, whilst Interest-bearing Postal Certificates in issue amount to 192.6 billion euros
(185.5 billion at the end of 2008).
In a market context reflecting a more prudent attitude on the part of customers compared with previous years, asset and
fund management 30 reported a 19% decrease (revenues are down from 499 million euros in 2008 to 404 million euros in
2009). This was primarily due to a reduction in investment in equities and bonds, and also to a specific Company policy
aimed at developing more protected investment products. Inflows in this segment fell by 34.1%, with revenues decreasing
from 229 million euros in 2008 to 151 million euros in 2009, and a 22.2% reduction in the total amount invested (4.2 billion
euros in 2009 compared with 5.4 billion euros in 2008).
Revenues from Delegated Services amount to 202 million euros (190 million euros in 2008) and primarily relate to revenues
from the payment of INPS (National Social Insurance Institute) pensions, totalling 107 million euros (108 million euros in
2008), and INPDAP pensions, totalling 16 million euros (17 million euros in 2008).
Revenues from the distribution of loan products 31 rose substantially (70 million euros in 2008 compared with 181 million
euros in 2009). This was primarily due to the excellent performance of loans, which reported significant growth of 42.7%
(1,568 million euros provided in 2009 compared with 1,071 million euros in 2008) and an increase in the one-off fee paid
29. Fees for online transactions and the subsidised fees offered to the over-70s remained unchanged.
30. Asset and fund management includes the distribution of government securities, equities, bonds, life assurance policies, mutual investment funds and
commissions on safe custody accounts.
31. Personal loans, mortgages, overdrafts and credit protection.
to the distributor. Mortgage origination also performed well, reporting a slight increase of 1% (915 million euros in 2009
compared with 907 million euros in 2008), whilst revenues were down 6.8% (13.6 million euros in 2009 compared with
14.6 million euros in 2008), partially offset by the greater number of CPI (creditor protection insurance) 32 policies and higher
related revenues (5 million euros in 2009 compared with 2 million euros 2008).
Poste Tutela SpA reports sales and service revenues for 2009 of 79 million euros (78 million euros in 2008), relating almost
exclusively to the transport of cash (71 million euros in 2009), which is currently the company's core business.
4.3 INSURANCE SERVICES
The insurance business is run by Poste Vita SpA, a wholly owned subsidiary of Poste Italiane SpA. Poste Vita is permitted
to engage in ministerial Life Insurance Branches I, III and V through the network of 9 thousand Poste Italiane post offices
that are authorised to distribute policies and in which 16 thousand agents work who are licensed to distribute insurance
policies. From the second half of 2007, the company has been authorised by ISVAP to expand its accident and medical
insurance business (ministerial non-life insurance branches I and II). Poste Assicura SpA, which provides insurance services
to Group companies, is a wholly owned subsidiary of the company. It also jointly owns 45% of Europa Gestioni Immobiliari
SpA together with the Parent Company.
Regarding a Gruppo Poste Italiane's decision to enter the “non-life” branch (except for the motor vehicle segment), in
November the Board of Directors approved the draft plan for a change to the current activities and business purpose of the
subsidiary, Poste Assicura, into a non-life insurance company (specifically regarding non-life branches 1, 2, 8, 9, 13, 16, 17
and 18), subsequent to obtaining authorisation from the Supervisory Authority to conduct this type of insurance business.
An Extraordinary General Meeting on 21 December 2009 thus approved changing the current activities and business
purpose of the company into a non-life insurance company. In order to increase the company's capital to meet the capital
requirements provided for under insurance sector regulations regarding the conduct of non-life insurance business, the
Extraordinary General Meeting also approved a capital increase of 4.9 million euros.
Regarding legislation, European Parliament Directive 2009/138/EC (Solvency II) was approved during 2009, which
introduces radical changes to the prudential rules established to safeguard the stability of insurance companies. In
addition to the solvency margin, the Directive also regulates the allocation of technical provisions and the investments
that are allowed to cover them. The primary objective of the new regulations, which will come into force in October
2012, is to establish a solvency system that takes better account of the risks actually undertaken by individual
companies than the current system does. In this regard, Poste Vita stepped up its efforts aimed at achieving
convergence with Solvency II.
With a view to achieving greater convergence with the latest corporate governance models, as requested by the Parent
Company, at a meeting on 29 October 2008, the Board of Directors of Poste Vita appointed a Chief Financial Officer.
Moreover, during the year the conversion of the index-linked policies, “Classe 3A Valore Reale” and “Ideale”, as approved
in December 2008, was completed, with acceptances totalling approximately 92%. As a result of the continuing risks of
a loss in value of the securities underlying the index-linked policies, “Raddoppio” and “Index Cup”, a second, similar
conversion process was launched in May for these policies, with acceptances totalling approximately 77%.
32. Policy that insures the debtor in the event of death, permanent disability or loss of employment.
66
On 29 September 2008 the regulator (ISVAP) began an investigation of the company, which was completed in
December 2009. The resulting findings were communicated to the Company’s management in February 2010. The
Company has responded to ISVAP’s findings with its own observations and proposals regarding the initiatives it intends
to take in order to resolve the problems identified. Based on the investigation conducted so far, and notwithstanding
the risk of a fine being imposed, the findings are not expected to generate liabilities not adequately covered by the
relevant provisions.
Commercial activities during the year focused on building an enhanced range of insurance products. Branch I
investment products saw the launch of “Postafuturo Certo”, alongside the “Multiutile” investment product that
started up in 2008.
Two other investment products in line with the company's values of security and guarantee were launched during the
second half of 2009. For these index-linked products, called “Programma Garantito Alba” and Programma Garantito
Terra” (which will be distributed from December 2009 until March 2010), in compliance with the new ISVAP Regulation
32 of 11 June 2009, the Company directly guarantees the return of capital and any minimum return guaranteed to the
customer.
The Company's product range was also extended in the area of personal and family protection, with the marketing launch
of a life insurance policy called “Affetti Protetti” in January. The policy was much appreciated by customers who, in
exchange for a modest monthly payment, can rest assured that a substantial sum will be paid to their family if anything
untoward were to happen to the breadwinner.
Again within the range of protection products, “Postapersona Senior” was launched. This accident product aimed at senior
citizens (policies may be taken out up to 80 years of age) insures against accidents that people may have in their everyday
lives, including in the home. Postapersona Senior, as well as guaranteeing payment of a pre-established sum that increases
in accordance with the type of injury sustained by the insured party after an accident, also provides free home health care,
including both nursing and social welfare services, with a view to reducing the discomfort experienced by a customer after
an accident.
The number of new life assurance policies in Italy during 2009 represented a reversal of the negative performance
recorded in recent years. This was due to a pick-up in sales of traditional Branch I products in response to the current
crisis and uncertainty on financial markets, which has led customers to seek policies offering a more prudent
risk/return profile compared with those with a greater financial component. In this context, the range of products
offered during the year, together with the values deriving from belonging to Gruppo Poste Italiane, enabled the
company to post its highest ever turnover, with 7,091 million euros in premiums written, up 28.4% on the 5,524 million
euros registered in 2008.
Technical provisions, calculated analytically for each contract in compliance with the related legislation and based on
appropriate actuarial assumptions, total 37.2 billion euros, marking an increase of approximately 18% on the 31.5 billion
euros registered in 2008. Non-life and life technical provisions amount to 27,018 million euros (20,909 million euros in
2008), representing a 29% increase on 31 December 2008 and accounting for 73% of total provisions. These provisions
are made to cover all the Company's obligations and include mathematical provisions (26,810 million euros), outstanding
claims provisions (122 million euros) and other technical provisions (84 million euros).
Technical provisions for Branch III, Index- and Unit-linked products, where investment risk is transferred to policyholders,
amount to 10,150 million euros overall, representing a 4% decrease with respect to 2008 (10,578 million euros) and
accounting for 27% of total provisions.
Technical provisions for "accident and sickness" products amount to 2 million euros.
Class C investments, which are intended to cover contractual obligations to policyholders, increased from 20,016
million euros at the beginning of the year to 27,181 million euros at 31 December 2009. 78% was invested in treasury
bonds, 14% in high-grade corporate bonds, with a non-current component amounting to around 61% (54% at the end
of 2008), including 51% in treasury bonds, 6% in UCITS with guaranteed capital and the remaining 4% in corporate
bonds.
4.4 OTHER SERVICES
This segment includes the complementary services provided by Poste Italiane SpA and certain other Group companies,
including BancoPosta Fondi SpA SGR, EGI SpA, Postecom SpA, PosteShop SpA, Poste Link Scrl, PosteMobile SpA and
Poste Energia SpA.
In relation to the regulations governing electronic certification and communication services, Law 2 of 28 January 2009 has
converted, with a number of amendments, Law Decree 185 of 29 November 2008, containing “Urgent measures to
support families, workers, employment and businesses and revisit the national strategic framework in response to the
crisis”. Articles 16 and 16 bis contain specific provisions regarding “certified electronic mail”33 including:
• the obligation for enterprises incorporated as companies, chartered professionals and public entities to equip themselves
with a certified electronic mail address or a similar electronic mail address using technologies that certify the date and
time messages are sent and received and the completeness of the contents of messages;
• the possibility to send messages between different entities via certified electronic mail or a similar form of electronic mail
without the addressee having to declare their willingness to accept the use of such a system;
• the possibility for members of the public to obtain a certified electronic mail address, via an appropriate application, “with
effect equivalent to notification by post” without incurring any expenses.
The Cabinet Office Decree of 6 May 2009 then established specific implementing provisions for the release and use of
certified electronic mail addresses assigned to members of the public, granting certified electronic mail a primary role in
communication between members of the public and Public Sector entities.
Poste Italiane SpA
Public services
Within the context of the “Reti Amiche” project, promoted by the Ministry for the Public Administration and Innovation
with the aim of making it easier for people to access public services, and which Poste Italiane agreed to take part in during
2008, a new product, Sportello Amico-Rilascio Certificati, was launched. This service is provided on behalf of participating
municipal authorities who choose Poste Italiane to manage the collection of applications for and the delivery of birth, death
and other certificates at post offices equipped with a Sportello Amico counter (5,470 throughout Italy). The documents
provided by Sportello Amico counters bear a digital stamp guaranteeing their legal validity. During 2009 a service for issuing
INPS social security contribution certificates was also launched on an experimental basis in over 1,000 post offices
equipped with “Sportello Amico” counters in the Emilia Romagna, Lazio and Calabria regions.
Management of the process of issuing and renewing residence permits (Emersione Lavoratori Immigrati or “ELI 2”)
continued during 2009, with the introduction of a software application that enables applicants to be given an appointment
at immigration centres directly on collection of their application at the post office.
33. Certified electronic mail (CEM) is a system that provides senders with legally valid documentary proof, in electronic format, of the sending and delivery of
electronic documents.
68
The “Guaranteed Minimum Wage” project, in favour of the short- and long-term unemployed and temporarily workers, was
implemented in collaboration with the Lazio Regional Authority, in accordance with Regional Law 4 of 20 March 2009.
Finally, the issue of Social Cards (Carta Acquisti) to applicants who satisfy the necessary requirements continued. The card
can be used by recipients to pay their food, electricity and gas bills. 320 thousand cards were issued during 2009, bringing
the total number of cards distributed to approximately 840 thousand.
BancoPosta Fondi SpA SGR
BancoPosta Fondi SpA SGR is Gruppo Poste Italiane’s asset management Company responsible for the collective
management of savings and the individual management of investment portfolios on behalf of professional customers
(carried out on behalf of the Company Posta Vita), as well as the marketing of third-party mutual investment funds
registered overseas, including customer management and investor relations (marketing service). In this connection, two
French-registered mutual investment funds, marketed in Italy by BancoPosta Fondi SpA SGR, were launched. The funds,
which are distributed to customers via the Parent Company’s sales network, are formula funds linked to the performances
of four international equity market indexes.
Regarding proprietary funds, the Company has appointed Pioneer Investment Management SGRpA, pursuant to art. 36 of
the Consolidated Law on Finance, to manage the mutual investment funds, BancoPosta Monetario, Obbligazionario Euro,
Mix 1, Mix 2, Azionario Euro, Azionario Internazionale, Investimento Protetto 90 and Extra. As a result of this new
management model, as of 1 January 2009 BancoPosta Fondi now acts as a promoter company responsible for promoting
and organising the funds, and for managing relations with investors, whilst Pioneer Investment Management manages all
the financial aspects of the funds.
The Company's operating results, which are reported below, regarding proprietary funds and asset management, led to its
being ranked 17th amongst Italian operators (out of more than 75 operators, and compared with 25th place in 2008) in
Assogestioni's Asset Management Map for the fourth quarter of 2009, with a market share of 1.18%. Regarding asset
management, the Asset Management Map ranked BancoPosta Fondi in 10th place (compared with 12th place in 2008),
with a market share of 2.43%.
Europa Gestioni Immobiliari SpA
The Company operates in the real estate sector in order to manage and develop property assets transferred from the
Parent Company. Due to the type of assets owned, the service is mainly provided to large customers, often Public Sector
entities. The Company bases its decisions on the best marketing strategy to use with reference to market conditions.
Postecom SpA
This Company provides IT services and solutions for the Group and external customers, with particular regard to Public
Sector entities. Over the years, it has played an important role in systems integration, applications outsourcing and
information systems, based on its experience in the design, development and management of ICT services combined
with advanced IT security solutions. Its main areas of expertise are certification and security solutions and services,
messaging, online payments and collection, data management, web portals, e-government, e-procurement and elearning.
In response to the Government’s policy of encouraging and promoting innovation (e-Government 2012), Postecom is
playing a proactive role in developing innovative solutions for the Group. Specific areas of focus are Health, Justice,
Education and Employment, sectors in which, more than any other, the Government needs to boost efficiency in terms of
the reduction of operating costs and a more rapid response to the needs and expectations of members of the general
public and the business community.
PosteShop SpA
The Company markets items related to Poste Italiane SpA's core business (envelopes, letter boxes for houses, bill holders,
telephone top-ups, delivery boxes) and products from external suppliers (including books, music CDs, DVDs and
stationery). In addition to post offices for direct and catalogue sales, it uses the 214 “Shop in Shop” outlets (shops fitted
out in the public area of major post offices); 102 franchise retail outlets bearing the KiPoint logo, which operate as service
centres for domestic and international express delivery services, packing services, photocopy and fax services, digital
printing, mailing and office product and stationery supply services; as well as the internet channel www.posteshop.it, a
telephone channel and the MondoBancoPosta channel.
Operations in 2009, which continued to be negatively affected by the economic downturn, focused on a number of
business development initiatives, including rationalisation of the product ranges directly sold through post offices (the Basic
network), through modification of the supply and stock management systems, as well as reorganisation of the sales
channels network and the introduction of new marketing initiatives.
On 8 October 2009 the Antitrust Authority formally launched a PB/455 procedure regarding the Company in order to
investigate alleged infringements (pursuant to the related "Regulations governing misleading advertising") connected with
the advertising material used by PosteShop to promote the activities of the Kipoint franchise retail network. At the end of
December 2009, convinced of the lawfulness of its actions, the Company nevertheless submitted a proposal containing
commitments aimed at rectifying the alleged abuses.
On 9 March 2010 the Authority notified its refusal to accept the commitments made, except for the "possibility for the
Authority to assess the subsequent behaviour of the party, if this constitutes effective and documented cooperation to the
benefit of consumers”.
Poste Link Scrl
The Company is a limited liability consortium, which acts on its own behalf and in the interests of consortium partners,
providing IT, electronic document management, internet, contact centre and direct marketing services.
On 28 October 2009 a plan was approved pursuant to art. 2501 and subsequent articles of the Italian Civil Code
regarding the merger of the Poste Contact consortium with and into Poste Link, which will be completed with respect
to third parties when the last of the formalities provided for under art. 2504 of the Italian Civil Code has been carried
out, or at a later date to be indicated if necessary in the merger agreement. This operation is part of Gruppo Poste
Italiane's efforts to reorganise its customer services segment, with a view to optimising the Group’s personnel and
technologies and creating a single corporate entity capable of acting as a reliable reference point for the sector.
Consequently, the incorporation of the Poste Contact Consortium will optimise the skills and specific expertise of the
consortium partners (70% Poste Italiane, 15% Postecom and 15% Postel), as well as potentially allowing for cost
reductions relating to future contracts.
Following contract extensions and whilst awaiting completion of the procedure for awarding a new contract, management
of the contract with INPS (National Social Insurance Institute) and INAIL (National Insurance Institute for Industrial
Accidents) continued during 2009. This contract regards the setting up of an integrated contact centre, with a single virtual
provider of information and services to INPS and INAIL customers. The provision of services to Linea Comune SpA and
Consip also continued.
PosteMobile SpA
Established in March 2007, Poste Mobile is an MVNO (Mobile Virtual Network Operator). It operates in the
telecommunications sector as a mobile Enhanced Service Provider. The Company continued to grow in 2009, with the aim
of increasing its share in the mobile telephony market.
70
In the consumer segment promotional initiatives targeted immigrants, young people, pensioners, communities and
households, enabling the sale of 643 thousand SIM cards to consumers during the year (565 thousand SIM cards sold
during 2008), thus edging towards the first million SIM cards activated.
In the business segment the Company launched prepaid mobile telephony cards for companies, broken down by customer
target, TOP and Large, Small to Medium Businesses and SOHO, which generated approximately 27 thousand business
SIM card sales.
2009 also saw a broadening of the range of mobile financial and payment services, including: MCommerce services, which
enable users to pay for car parking and public transport; international money transfer services, which incorporate
Moneygram services with SIM cards; bundled offerings for information services on means of payment and information
services on credit cards.
PosteMobile's distinctive new services met with a positive response from customers: during the year the number of
customers with a means of payment linked to a PosteMobile SIM card, equivalent to 70% of the customer base, carried
out 7.3 million information and payment transactions, generating a total of 72 million euros.
Poste Energia SpA
The purpose of the Company, which was established in September 2007, is to procure energy over the national grid to
cover the Gruppo Poste Italiane's needs. This role of Group energy wholesaler was strengthened during 2009 with the
acquisition of new customers for its electricity supplies, which it now also sells to Postel, SDA Express Courier and Europa
Gestioni Immobiliari. During the year the company continued to pursue achievement of its pre-established targets, primarily
relating to energy procurement, contract management and the provision of value added energy services.
BancoPosta Fondi's collective asset management activities registered a net inflow of 73 million euros (a net outflow of
530 million euros in 2008), which was the difference between a gross inflow of 630 million euros (215 million euros in
2008) and redemptions of 557 million euros (745 million euros in 2008). The demand for greater safeguards continues
to affect the type of fund established and growth rates of existing funds. As a result, the composition of gross inflows
into the company’s proprietary funds reflects general trends observed on the Italian market, with investors preferring
money market and bond funds which, with inflows of 547 million euros, accounted for 87% of all inflows during the
year.
Open-ended investment funds set up by third parties registered a net inflow of 241 million euros (311 million euros in
2008), deriving from a gross inflow of 267 million euros (315 million euros in 2008) and redemptions amounting to 26
million euros (4 million euros in 2008).
Total assets under management amount to 14,675 million euros, up 83% on the previous year (8,036 million euros at
31 December 2008), of which 2,882 million euros regards proprietary funds (2,695 million euros at 31 December 2008),
and a more substantial 11,203 million euros regards individual accounts managed on behalf of the insurance Company,
Poste Vita (5,019 million euros at 31 December 2008). Finally, assets relating to the management of third-party funds
distributed by the company amount to 590 million euros (322 million euros in 2008).
During the year, work costing approximately 1.59 million euros (including technical consultancy fees) was either started or,
in some cases, continued on the upgrading of properties held for sale and those held for rent, in order to assure they are
fully occupied.
Two properties were sold during the year for 25.3 million euros, on which the company realised gains of 20.5 million euros
(21.5 million euros at consolidated level). Rental income was 21 million euros and profit for the year was 19.9 million euros
(37.6 million euros in 2008).
Postecom SpA
Sales and service revenues amount to 56.8 million euros, marking a decrease of 17.6% on the previous year (68.9 million
euros in 2008). Operating costs amount to 56.7 million euros (62.7 million euros in 2008) and an operating loss of 1.6 million
euros was reported (operating profit of 3.8 million euros in 2008).
Operations during the year were affected by the downturn in the Italian economy, especially in the IT sector. The
performance of the IT sector is the result of greater caution among large companies when it comes to investing in new
projects, a reduction in medium-sized companies’ IT budgets, the difficulties experienced by SMEs in accessing credit, and
cuts in public spending. The results were also affected by a reduction in revenues from the Department of Land Transport
contract which, with the support of the Parent Company, defined certain activities to be carried out in accordance with the
Agreement. This entailed a reduction in expected earnings over the lifetime of the contract.
The operating results of the www.poste.it website are reported in the section on distribution channels.
Posteshop SpA
In 2009 the Company registered a 10.6% decrease in revenues from sales and services (59 million euros in 2009
compared with 66 million euros in 2008) and an 8.1% reduction in the cost of goods and services (57 million euros in
2009 compared with 62 million euros in 2008). The company reported an operating loss of 1.4 million euros, compared
with operating profit of 0.9 million euros in 2008. Despite implementation of various commercial support initiatives,
these results reflect the ongoing economic downturn and the sharp decline in consumer spending.
Poste Link Scrl
The Company reports a positive performance for the year despite the economic downturn. Sales and service revenues
grew by 63.8% (rising from 17.7 million euros in 2008 to 29 million euros in 2009) and the company reports a profit for the
year of 5.2 million euros (1.7 million euros in 2008).
PosteMobile SpA
Operations during the year, which were affected by the Company's start-up, resulted in traffic growth and consequently
sales and service revenues performed well, rising from 37.5 million euros in 2008 to 98.2 million euros in 2009. Service
72
costs also increased in 2009, primarily in relation to customer acquisition costs, which are up from 47.2 million euros in
2008 to 91.0 million euros in 2009, and start-up costs.
The Company closed 2009 with a loss of 11.7 million euros (6.8 million euros at consolidated level), registering an
improvement on the loss of 16.1 million euros reported in 2008.
Equity amounts to 2.3 million euros (0.5 million euros in 2008). During the period Poste Italiane SpA approved a fully paidup capital injection of a further 13.5 million euros to cover losses for the year and the establishment of an extraordinary
reserve.
Poste Energia SpA
The company reported revenues of 72 million euros in 2009 (65.9 million euros in 2008), thereby enabling it to meet the
Group's increased energy needs, as well as registering a reduction in the average cost of energy acquisition. Operating
costs rose from 65.6 million euros in 2008 to 71.4 million euros in 2009, and the company reports a profit for the year of
0.4 million euros (0.2 million euros in 2008).
4. Areas of business I 5. Distribution channels 73
5. DISTRIBUTION CHANNELS
Numerous channels have been dedicated to customers over the years: Branch Counters, Consulting Rooms,
PosteShops, the PosteBusiness network, the Contact Centre and the website. All of these aim to achieve the
common objectives of improving process efficiency, product innovation, service quality and customer relations in
order to meet all customer needs via a complete and integrated range of products and services.
The contact and sales channels for Retail and Small and Medium Enterprise customers are supervised by the Private
Customer function, whilst the Business Customer function (renamed the Large Company and Public Sector function
in early 2010) is responsible for developing commercial activities for Large Account customers and a number of local
government authorities, as well as Top and Central Government customers.
5.1 RETAIL/SME
During the year the Company implemented a series of actions aimed at improving the fit between the services
offered and the related target customers, via further specialisation of contact channels, such as the conversion of
PosteBusiness counters to traditional activities and the increase, in certain post offices, of “Postamat tills”, which
give priority to BancoPosta current account holders. These Offices also now have at least one Postamat counter
equipped with TPLabel 34 to enable BancoPosta current account holders to also carry out postal transactions. As of 31
December 2009, 2,491 post offices have Postamat tills (1,057 as of 31 December 2008), with a total of 3,434
counters reserved for BancoPosta current account holders (1,357 as of 31 December 2008).
The PosteBusiness network, which plays a key role in developing sales to SMEs, recorded a total of around 2.5
million customers and 675 thousand PT-Business Card holders in 2009. As of 31 December 2009 the PosteBusiness
channel comprises 216 PosteBusiness Offices and 295 Specialist Areas.
With the aim of fully leveraging the widespread presence of post offices around the country by offering quality
services, the Company enhanced queue management (more than 2,600 systems up and running at the end of 2009)
and installed approximately 850 new ATMs, bringing the total number to around 5,500 across the country
Finally, the extension of the self-service network begun in 2008 was completed during the year. Around 430 areas
are now equipped with high-tech cash dispensers, enabling many operations to be carried out via an interactive kiosk,
without needing to go to a counter (for example, the payment of pre-prepared bills, account balance updates,
telephone top-ups), and also outside post office opening hours.
34. This is a franking system with two main modules: scales and a printer that, being mechanically and electronically linked, can issue printed labels containing
letters and numbers, graphics and standard or bi-dimensional bar codes.
74
5.2 BUSINESS AND PUBLIC SECTOR
During 2009 the Company stepped up customer management and development in all phases of the marketing
process (pre-sales, sales and after-sales), with the aim of maintaining business volumes with large customers, and
increasing sales of innovative services with a view to diversifying and boosting market share.
Commercial development was pursued by drawing up tailor-made action plans, which through market analysis
enabled definition of optimum implementation of operations to meet customer requirements, in order to maintain
market share and boost revenues. Efforts were also focused on analysis of customers' internal operations to
understand their needs; tailoring products and services; and the combination of Government processes and
BancoPosta payment services.
The Public Sector market changed significantly during 2009. Efficiency and cost-cutting targets, as well as
implementation of extraordinary measures to boost the economy, have opened up new opportunities regarding
integrated services and business development initiatives. In particular, four projects were developed and partially
launched during the year which will be implemented as of 2010:
• PosteGov is a project designed to provide Public Sector services via Poste Italiane's multi-channels;
• PosteSalute is an efficient and integrated system that creates value for healthcare providers and their customers;
• PosteCommerce entails development of the current service into a hybrid, multi-channel e-commerce platform, which is
integrated with the functions provided by post offices and the Electronic Postman, and with mobile payment services
and instant messaging platforms;
• Polstrada involves creation of a new traffic police department for processing fines generated by automated traffic
violation monitoring systems.
With a view to acquiring new market share and protecting the Group’s current share from ever-growing competition, the
activities of the new sales channel, "Partnerships and intermediaries", were stepped up. Development of the new channel
focuses on mail consolidators, as well as on partnerships entered into with advertising agencies and local businesses
(printers) to develop Direct Marketing, and on partnerships with a number of technology companies in order to develop
host-to-host solutions and digital services.
5.3 THE CONTACT CENTRE AND THE INTERNET
The "Poste Risponde" Contact Centre plays a key role in customer relationship management and in supporting
Business functions and Group companies. It enhances and/or is integrated with the Company’s other channels in the
management of information, promotional and commercial activities, and in the provision of after-sales services.
The channel proposes integrated and innovative solutions to the captive (75%) and external (25%) markets, and
manages around 35 million contacts per year.
In addition to customer relations management regarding financial, postal and internet matters, the main services
provided in support of internal Group activities regard: assisting the post office network with enquiries regarding
regulations and operational support; after-sales services and assistance to post offices regarding Poste Vita products;
customer care regarding Poste Shop products; assistance to the sales network regarding Poste Mobile products.
The most important initiatives during the year include:
• the management of customer relations for BancoPosta. Solutions designed to support specific promotions have been
developed, involving both automated procedures (“Piu’ BancoPosta, Meno Spese”, for example) and operators
(BancoPosta’s “In Proprio” account, for example), and integrating and complementing the other distribution channels;
• Customer Care activities for Poste Mobile, which reinforced a model for proactive customer management designed to
support specific promotions.
5. Distribution channels 75
Government-related initiatives included continuation of the initiative set up by the Communications Department of the Ministry
for Economic Development, which provides support for people wishing to switch to digital TV.
As part of the agreement between the Treasury Department of the Ministry of the Economy and Finance, operation of the Carta
Acquisti (Social Card) Call Centre proceeded to provide information and assistance regarding the programme and the card.
Commercial services offered on the internet at www.poste.it continue to be very successful, with over 4.8 million
registered customers (over 3.7 million at the end of 2008). The success of the site as a point of access for online services
is a result of integrated and secure electronic payments services for the entire range of products and services offered on
the web. Due to its efficiency, Poste Italiane SpA’s IT network continues to be used for central and local government
online services, via provision of integrated value added services (communication services, mail management,
e-government services, tax collection) that are linked to the internet portal.
76
6. HUMAN RESOURCES
6.1 HEADCOUNT
The workforce employed by Gruppo Poste Italiane and the Parent Company breaks down as follows:
Number of employees
Average
(*)
End of reporting period
Permanent workforce
Senior managers
Middle managers
Frontline staff
Back-office staff
2008
756
14,148
130,149
5,326
2009
741
14,703
129,616
6,206
31 Dec 2008
744
14,477
129,517
6,248
31 Dec 2009
714
14,539
126,705
6,164
Total workforce on permanent contracts
150,379
151,266
150,986
148,122
144
32
139
36
171
27
79
41
150,555
151,441
151,184
148,242
Traineeships
Apprenticeships
Total
Average
Flexible workforce
2008
2009
Temporary contracts
Fixed-term contracts
373
5,539
135
2,621
Total
5,912
2,756
156,467
154,197
Total permanent and flexible workforce
(*)
All workforce data is expressed in full-time equivalent terms.
6. Human resources 77
Poste Italiane SpA
Number of employees
Average
Permanent workforce
Senior managers
Middle managers - A1
Middle managers - A2
Grades B, C and D
Grades E and F
Total workforce on permanent contracts
(**)
Traineeships
Apprenticeships
Total
(**)
including:
- Seconded
- Suspended without pay (***)
- Seconded to Group companies
End of reporting period
2008
2009
31 Dec 2008
31 Dec 2009
643
5,674
7,701
128,146
5,242
627
5,750
8,119
127,487
6,143
629
5,686
7,973
127,469
6,165
602
5,663
8,010
124,520
6,107
147,406
148,126
147,922
144,902
78
3
98
-
111
-
60
-
147,487
148,224
148,033
144,962
238
497
103
27
2,096
120
30
377
115
15
2,063
103
Average
Flexible workforce
2008
2009
Temporary contracts
Fixed-term contracts
185
5,477
9
2,560
Total
5,662
2,569
153,149
150,793
Total permanent and flexible workforce
(*)
(***)
All workforce data is expressed in full-time equivalent terms.
Change due to transfer to INPS contribution regime for maternity leave.
(*)
78
6.2 CORPORATE SOCIAL RESPONSIBILITY AND TRAINING
The Company’s training and internal communication policies are designed to support the business via the development,
sharing and replication of knowledge and skills, including through the use of technology.
Training initiatives implemented in 2009 entailed:
• maximum use of available funding; above all the Solidarity Fund for Poste Italiane SpA staff, set up by INPS, and interprofessional funds – Fondimpresa and Fondirigenti – to which Poste Italiane SpA gained access in 2009. In this regard 64
training and refresher course projects, aimed at all company departments and focusing on the objectives of
professionalization and improvement of operating efficiency, were shared with the labour unions;
• the development of multimedia and multi-channel systems to drive further growth of e-learning;
• support for the compliance function in circulating training material regarding regulatory requirements. In particular, a longterm programme was launched regarding updating of skills in compliance with the “Markets in Financial instruments
Directive” (MiFID) (so-called “Service model appropriateness”).
A total of 319 thousand person days of training were provided (296 thousand in 2008), of which 197 thousand in the
classroom (179 thousand in 2008) and more than 121 thousand through e-learning (117 thousand in 2008), broken down
among the different departments and categories, as shown in the tables below:
CLASSROOM COURSES (person days)
31 Dec 2008
Grades
Postal Services
Financial Services
Private Customer/Business Customer
Central functions
Total
31 Dec 2009
Middle
Senior
managers managers
Grades
Total
Middle
Senior 31 Dec 2008 31 Dec 2009
managers managers
B-C-D-E-F
(A1 and A2)
B-C-D-E-F
(A1 and A2)
25,080
6,285
221
29,217
1,709
75
31,586
847
305
85
193
43
22
1,237
258
98,952
37,512
197
117,086
43,366
1,452
136,661
161,904
31,001
5,333
3,849
569
2,059
2,294
152
9,751
4,505
130,212
47,951
1,072
148,555
47,411
1,701
179,235
197,667
E-LEARNING COURSES (hours)
31 Dec 2008
Grades
31 Dec 2009
Middle
Senior
managers managers
B-C-D-E-F (A1 and A2)
Postal Services
Financial Services
Private Customer/Business Customer
Central functions
Total
Total person days
Grades
Total
Middle
Senior 31 Dec 2008 31 Dec 2009
managers managers
B-C-D-E-F
(A1 and A2)
10,097
1,911
-
35,164
730
10
12,008
35,904
454
150
1
3,152
645
12
605
3,809
659,842
151,625
76
711,699
118,875
58
811,543
830,632
11,643
5,315
60
1,613
1,661
38
17,018
3,312
682,036
159,001
137
751,628
121,911
118
841,174
873,657
94,727
22,083
19
104,393
16,932
16
116,830
121,341
Professional skills
Training courses regarding the innovation of operating processes were primarily aimed at logistics, IT and corporate
staff. In particular, in addition to the ongoing update of logistics staff skills, regarding new developments in equipment
and processes, specialised programmes on monitoring and quality continued. In addition to specialists, training aimed
at enhancing the technical skills involved ever wider segments of the workforce, as the evolution of business and
corporate activities are increasingly connected with the development of IT services and infrastructures.
E-learning (around 874 thousand hours provided per annum) was aimed at meeting the needs of business support and
regulatory compliance. 32% of enrolments regarded new products and services, 13% Poste Mobile products, 41%
regulations, 6% the “ISVAP series” and 8% other courses.
27 new training courses and online training courses were provided during the year, involving 112 thousand staff, with a
total of 756 thousand enrolments and an average of 7 courses per person. More than 91% of enrolments regarded post
office staff. Two separate courses, for different types of trainee, were devoted to MiFID regulations, entailing 55
thousand enrolments. The training programme dedicated to security and prevention of the risk of robbery continued.
Special attention was also paid to anti-money laundering, as well as the monitoring and reporting of potentially suspect
transactions involving market abuse, to which two specific courses were dedicated, also differentiated in terms of type
of trainee.
Regarding Delivery sector staff, e-learning enabled timely training of 12 thousand delivery staff involved in the
Notification Messenger initiatives, following the award of the related contract.
As part of the Corporate Social Responsibility programme, the training course, "Reintegration of staff after extended
leave”, was attended by 223 staff in 35 virtual classrooms during the year.
Internal communication projects included initiatives regarding occupational safety, designed to spread a culture of
prevention and awareness of the risks of injury, and management communication, via the organisation of periodic
appointments with management via videoconferencing.
The progress of sustainable development regarding Corporate Social Responsibility (CSR), which is described annually
in the Social Report, led to the Company's involvement in such areas as EU monitoring of human resource issues,
telecommuting, the work-life balance, and staff training and development.
Major initiatives aimed at staff included continuation of teleworking on an experimental basis, which saw consolidation
of the improvements in productivity compared with staff working on site and an increase in attendance of
approximately 30%. The Social Inclusion project also envisaged priority access to teleworking for disabled staff and
those with serious personal and family difficulties.
6.3 HUMAN RESOURCES MANAGEMENT
In 2009, in order to enhance the assets represented by the skills and know-how of its workforce, the Company deemed it
vital to give priority to internal recruitment as the primary solution for meeting its requirements, whilst at the same time
ensuring staff motivation and development by enabling their access to professional development and diversification initiatives.
Use of external recruitment was primarily aimed at:
• acquiring specific professionals whose specialised expertise would be difficult to find within the Company;
• the recruitment of talented, highly educated young people with development potential, via internships lasting an average
of 12 months.
In the Delivery sector, approximately 1,200 staff were recruited in accordance with the agreements signed with the labour
unions on 13 January 2006 and 10 July 2008.
As usual, in applying staff management, development and training policies, the Company used the performance appraisal
procedure for executives and other staff members in 2009, involving appraisal of approximately 75 thousand employees
(compared with around 66 thousand in 2008) and 5,000 appraisers.
During the year, assessment of potential using the Assessment Centre method involved more than 60 executives in 8
sessions, aimed at identifying staff suitable for senior management positions, as well as 450 white-collar staff in 75
sessions, aimed at identifying staff with middle management potential. Approximately 30 newly recruited graduates were
also included in the post office development process, entailing 4 sessions aimed at strengthening commercial and
operational management roles.
80
Regarding compensation initiatives, 2009 saw the usual application of various incentive schemes35 and a merit-based
approach linked to performance appraisals. The incentive mechanisms adopted vary according to how they work and their
purpose, as well as in terms of whom they target.
These structured incentive schemes are accompanied by a merit-based approach that rewards outstanding performance
on a selective basis, taking into account the fairness of internal remuneration and comparable remuneration outside the
Company for key managers.
With particular reference to the traditional commercial activities carried out at branches, Area Offices and post offices, in
2009 the annual incentive scheme system was divided into three four-month periods. Whilst maintaining the high level of
attention paid to ethical issues in dealings with customers, this enabled greater flexibility and a closer focus on commercial
results, as well as providing the staff involved with more immediate financial rewards for the results achieved.
6.4 INDUSTRIAL RELATIONS
In 2009 the Company and the labour unions dealt with contractual, organisational and social issues in support of the
Company’s development and innovation phase, in line with the competitiveness requirements deriving from the upcoming
deregulation of the postal market.
The process of modernisation undertaken regarding variable salary increase mechanisms and criteria saw conclusion of the
negotiations on the performance-related bonus for the three-year period 2008-2010. Payment of the bonus is linked to
achievement of quality, profitability and efficiency targets, in line with strategic objectives for the related period, and in the
context of a closer link between bonuses and actual performances at local level. Absenteeism is strongly penalised, offset
by greater rewards to encourage regular work attendance.
On the organisational front, discussions continued on matters relating to the Private Customer and Postal Services
segments and actions in support of employment.
Regarding the Private Customer segment, negotiations were completed on 16 July 2009 regarding reorganisation,
including the drawing up of an important agreement that has led to radical changes to the organisational model, aimed at
improving efficiency and developing this area of business, as explained in the section on Organisation.
Regarding the Postal Services segment, preliminary activities were launched to carry out a thorough organisational review,
primarily aimed at preparing the sector to deal with the opening up of the market to full competition. To this end a specific
Technical Committee was set up, consisting of company and labour union experts, to investigate all aspects of the delivery
process and more generally the activities relating to the provision of postal services. The Committee's findings mark the
beginning of the final phase of negotiation prior to drawing up an agreement.
Also as part of an approach aimed at improving efficiency and optimising use of the workforce, on 7 August 2009 an
agreement was signed that provided for professional mobility for grade D, C and B staff, entailing the transfer of staff from
Corporate and BancoPosta functions at head office to front-line duties.
Regarding fixed-term contracts, application of the provisions of agreements regarding stabilisation of the workforce
continued. In particular, in July 2009 the agreement of 10 July 2008 was implemented. This will have significant financial
implications connected with the re-employment plans signed individually by employees on settlement and the decrease in
legal fees, as well as an operational impact, which will specifically encourage development and enhancement of the
Company’s staff.
Following the earthquake that hit the Abruzzo region, the Company and the unions were both keen to assist the affected
communities. This resulted in specific agreements providing help for staff working in the areas struck by the disaster
35. The incentive schemes used include:
- MBO (Management by Objectives) for managers, aimed at translating senior management strategy into specific, clear and measurable business and
financial, quality, operational and planning objectives. MBO measures and enhances the contribution of individual managers to overall corporate
performance;
- a commercial incentive scheme, aimed at the sales force in order to maximise achievement of commercial budget targets, whilst also taking into account
the vital importance of customer satisfaction and loyalty;
– a Target-based Incentive Scheme, an appraisal and compensation mechanism that links payment of a bonus to the performance of key managers.
(including advance payment of post-employment benefits and, at the request of the related staff, the suspension until 31
December 2009 of the repayment of amounts due under the fixed-term contracts settlement). The two parties also
accelerated the process of applying for income support for staff suspended as a result of the earthquake.
The activities of all the Bilateral Agencies were resumed during 2009. In particular, by conducting technical investigations,
the Bilateral Agency for Training and Retraining of staff supported the drawing up of several agreements that enabled
access to funding provided by both Fondo Impresa (the Enterprise Fund) and the Fondo di Solidarietà (the Solidarity Fund).
Regarding human resource management, various projects aimed at promoting the rationalisation and technological
development of certain key processes were completed during 2009. In particular, online tax assistance and payroll
management was implemented.
With regard to with trade associations, on 30 July 2009 the agreement regarding membership of Confindustria (the
Confederation of Italian Industry) and 104 local business associations was renewed. New company representatives to deal
with the various associations were thus nominated, and efforts were initiated to standardise the activities involved in the
Company’s relations with the associations.
6.5 LABOUR DISPUTES
With respect to labour disputes, the number of claims regarding fixed-term contracts (approximately 2,900 new complaints
filed compared with around 2,300 in 2008) was similar to the number of claims in other areas (approximately 2,600
including 350 regarding temporary and contract work).
2009 saw a higher number of new actions regarding fixed-term contracts compared with 2008, presumably linked to
“expectations” regarding the judgements to be handed down by the Constitutional Court 36 , which has been asked to rule
on the legality of art 1 of Legislative Decree 368/01 (the current source of the regulations governing fixed-term contracts),
art. 2, paragraph 1 bis of the Decree (relating exclusively to the postal sector) and art. 4 bis of the above Legislative Decree,
introduced by Law 133/2008 (the so-called “summer law”), which only regards judgements on the merits in progress at
22 August 2008.
In any event, whilst the jurisprudence regarding the merits of the case continues to be unfavourable to the Company, the
percentage of claims filed in 2008 and ruled on during 2009 stood at 45%, which confirms the reduction with respect to
the previous year (50% in 2008).
It should be pointed out that in March 2010 Parliament approved detailed and wide-ranging employment legislation. One
of the provisions (art. 31) introduces strict time limits for claims regarding specific areas (dismissal, transfers and fixed-term
contracts), whilst also imposing a cap on the compensation due to an employee in the event of "court-imposed conversion"
of a fixed-term contract.
Once this legislation comes into force it should help in establishing a clearer framework of reference in this complex area,
which has significantly impacted the Company's operations and results in recent years.
Finally, the Company was cited during the year in 356 (525 in 2008) disputes relating to "flexible work" (temporary and
contract work), with a percentage of cases lost of around 68%.
36. The Constitutional Court filed its decision on 14 July 2009. The Court has ruled that articles 1 and 2, paragraph 1 bis of Legislative Decree 368/01 comply
with the Constitution, whilst the provisions of art. 4 bis of the same Legislative Decree 368/01 do not. The unconstitutionality of this article does not,
however, regard the legality of the basis on which the Company adopted fixed-term contracts, but only the resulting sanctions (indemnity in place of
payment for damages in addition to re-employment) linked solely to the judgements regarding the nullity of the terms pending at 22 August 2008.
82
7. INVESTMENT
(€m)
2007
2008
2009
Intangible assets
153
396
197
439
185
269
Total Capital expenditure
Financial investments
549
18
636
18
454
17
Total investment
567
654
471
7.1 FINANCIAL INVESTMENTS
Investment in Group companies during 2009 reflected continued development of new initiatives and the consolidation of
activities that support the various business processes (postal, financial and insurance). The amounts invested relate to
capital contributions for PosteMobile SpA (13.5 million euros) and Mistral Air Srl (3 million euros).
7.2 CAPITAL EXPENDITURE
The diagram below shows capital expenditure broken down by macro area.
30%
54%
IT and telecommunications networks
Modernisation and upgrade of properties
Postal logistics
16%
7.2.1 IT AND TELECOMMUNICATIONS NETWORKS
In line with the strategy of both the Company and the Group over recent years, expenditure on Information &
Communication Technology (ICT) continued in 2009, aimed at pursuing a policy of integrating all business segments and
diversifying products and services.
7. Investment 83
In 2009 the monitoring capacity of the Service Control Room, which controls systems and the services provided, was
stepped up via extension of real-time monitoring to 14 new services (the number of services thereby rose from 47 in 2008
to 61 in 2009), and the development of specific tools for simulating and analysing the functionality and integrated
monitoring of the new SDP (Service Delivery Platform) system for Post Office counters. The SDP project provides for a
makeover of the current counter system, by building a multi-channel platform to carry all of Poste Italiane's distribution
channels. During 2009 the SDP system was activated at 148 post offices.
Further development of corporate and business applications, used in the integrated management of customer/product data
on behalf of the Company’s various businesses, also took place with the ongoing computerisation of Customer
Relationship Management (CRM) and the Enterprise Data Warehouse (EDWH). With respect to the CRM project,
integrated data management initiatives regarding Conto BancoPosta In Proprio and BancoPosta Più customers were
implemented, with a view to both improving the service provided and cutting the Company's costs. Regarding the EDWH
project, work continued on development of the integrated database management system, including the provision of
support for the integration and monitoring of commercial, operating and marketing processes.
In term of applications, extension of the Document Management System (DMS) continued. Amongst other things, this
system provides the document management necessary for automation of the sales and contract processes managed by
the CRM system, and supports the project aimed at simplifying the provision of information to post office staff and
integration with the new SDP counter platform.
In the area of financial and insurance services, investment was targeted at developing applications to support product and
service provision and compliance with Italian and international regulations, and at increasing the efficiency of existing
operating processes. In particular, the BPIOL Corporate Banking platform was upgraded; a card for withdrawing money
from personal savings books was activated; new types of electronic card, such as Postepay Twin, were created; and a
prototype version of the electronic billing service was activated, which enabled transmission and receipt of the first
electronic bills over the internet by certain customers.
As part of the Telecommunications Network Development project, VoIP (Voice Over IP) technology was extended to around
2,000 post offices and a multicast37 infrastructure was built on the network at the Rome headquarters, which enables
streaming38 video connections to all user workstations and reception of multimedia content.
On the computerisation front, updating of hardware and software continued at post offices and administrative offices, with
the installation of more than 50 thousand pieces of equipment, including personal computers, printers, cheque readers,
etc.. A computerisation programme regarding the delivery and logistics sector was also launched, with the installation of
35 thousand items of equipment, including franking machines, terminals for delivery staff, etc..
37. A multicast entails simultaneous delivery of information to a group of destinations.
38. Streaming refers to an audio/video data flow transmitted by a source to one or more destinations via a computer network. The data is reproduced as it
arrives at its destination.
84
7.2.2 MODERNISATION AND UPGRADE OF PROPERTIES
Support for expansion of the post office network, improving the match between post office location and customer demand,
and redesigning post offices to meet functional, commercial and operating requirements, entailed the continuation of projects
for the modernisation and upgrade of post offices. Design work, involved in implementation of the new post office location
strategy, which aims to improve regional coverage and thus relations with customers, as well as to ensure the smooth running
of the network, regarded 160 post offices.
The reorganisation and of delivery services, as explained in previous sections, led to the redesign, in accordance with the
guidelines of the new postal delivery services innovation project, of 853 Distribution Centres out of a total of 932 planned for
the entire project.
The restoration of historic buildings, renovation and upgrading of the Company's property assets and improvements to comply
with current regulations also continued.
7.2.3 POSTAL LOGISTICS
During 2009 the process of optimising and re-engineering the logistics network continued, via initiatives aimed, amongst
other things, at strengthening the logistics network, technological development of product and service processes and
improving the efficiency of transport networks.
In particular, the reorganisation of collection and distribution logistics continued, via the concentration of operations at
Sorting Centres. This logistics hub reorganisation, as explained in the section on Organisation, enabled a reduction in
manual sorting centres, which fell from 41 in 2008 to 35 at the end of 2009. This reduction in the manual component has
led to the full mechanisation of sorting so that 10 million pieces of mail are directly bundled for distribution to delivery staff
every day.
Improvements to the plant and equipment used at industrial sites, via the installation of new plant and/or the upgrade of
existing plant, continued. This project will enable optimisation of production facilities and improved efficiency of the endto-end production process, as well as facilitating the provision of new added value products and services.
In order to activate strategies aimed at developing and redeploying staff and cutting costs, 11 remote Coding Service
Centres were set up at logistics network hubs39. The project aims to equip non-automated network centres with civil,
mechanical and technological infrastructures that will enable the decentralisation of video coding activities currently carried
out at automated sites, thus improving the quality of service provided.
Other initiatives in 2009 also regarded improving the efficiency of transport networks, at national and local level, partly due
to the effect of contracting out transport activities.
39. The sites are in Teramo, Messina, Pesaro Urbino, Vercelli, Ascoli Piceno, Rimini, Grosseto, Alessandria, Campobasso, Agrigento and Bolzano.
7. Investment | 8. The environment 85
8. THE ENVIRONMENT
Every year Poste Italiane SpA prepares a Social Report, including an account of the Company’s activities and performance
regarding economic, social and environmental Sustainability. A summary of the main environmental initiatives carried out
in 2009 is provided below.
Poste Italiane SpA’s approach to environmental sustainability considers the Environment to be the ecosystem in which the
Company operates and on which it has an impact in carrying out its day-to-day activities. The Company’s size and the
number of staff employed require an ongoing, everyday commitment throughout the country, focusing on efforts to reduce
energy consumption and protect the environment. This has resulted in the establishment of the Parent Company’s Energy
Management function, which, in synergy with Poste Energia SpA, oversees the utilisation of energy resources, with a view
to curbing consumption and consequently reducing the environmental impact in terms of the amount of greenhouses
gases produced.
In particular, Poste Energia, in addition to managing the supply of some Group companies with substantial amounts of
electricity, has consolidated supplies and diversified the means of acquiring electricity, thereby obtaining significantly lower
prices. Moreover, the attention paid to environmental policies has spurred the Company to give priority to electricity
generated from renewable sources certified by RECS (Renewable Energy Certificate System), which in 2009 accounted
for 45% of energy consumption, as opposed to 8% in 2008, thereby reducing CO2 emissions from buildings by 28%.
In terms of transport, the Group was involved in two initiatives: the introduction of more electric and hybrid vehicles, and
the use of dual fuel vehicles that run on both petrol and methane.
The composition of the Company's fleet of vehicles has changed due to the introduction of around 400 motor vehicles as
motorcycles are taken out of service, and an increase in the number of electric vehicles (108 electric and hybrid
quadricycles in 2009), which are used for delivery in the old centres of some cities, including Rome, Milan, Bologna and
Turin. These vehicles have been deployed in order to extend trials in connection with the Green Post project, and in July
they were also made available to the organisers of the G8 Summit held in L’Aquila. The website www.greenpostproject.eu
(managed by Legambiente) was also created, with a view to promoting the project at EU level and coordinating the
activities of partners, via information sharing and monitoring of the state of progress of activities, as well as raising public
awareness of environmental issues, especially the spread of electric and hybrid vehicles. An assessment of CO2
emissions, carried out by using typical emission factors for each type of fuel, revealed no significant variation compared
with the previous year: total CO2 emissions in 2009 amounted to 83,622 tonnes (83,456 tonnes in 2008).
86
9. EVENTS AFTER 31 DECEMBER 2009
No major events occurred after 31 December 2009.
A number of events of minor importance occurring after the end of the reporting period have been described in other
sections of the Report.
9. Events after 31 december 2009 I 10. Outlook 87
10. OUTLOOK
The difficult and complex economic situation, the crisis in financial markets, the change underway in the postal system and
ever keener competition across all the sectors in which the Group operates, call for a great deal of care in drawing up Poste
Italiane SpA’s strategies. These aim, on the one hand, to increase the Group’s competitive capacity, via cutting-edge
organisational and technological solutions and, on the other, to offer innovative services to meet new customer
requirements.
The further contraction of the Postal Services market expected in 2010, and growing competitive pressures, partly as a
result of the upcoming full deregulation of the market, will lead the Group to adopt measures designed to support the
volumes of traditional mail products and the related revenues, to diversify its offering through the development of new
services in line with changing customer needs, to boost operating efficiency throughout the collection, sorting, transport
and delivery phases, and to improve levels of effective and perceived quality.
In particular, the Group plans to develop services capable of meeting market needs in terms of timing, offering value added
services, tracking and advanced forms of reporting, as well as hybrid mail. The new Unaddressed Mail offering will be
developed to provide a specific response to customers’ needs, with optional value added services designed to enhance
the service.
The Direct Marketing offering will develop in order to take advantage of the opportunities deriving from its integration with
targeting services and the new digital, internet and mobile media.
To also support business innovation from an organisational viewpoint, investment in network reorganisation and in new
technologies for use during the delivery process will go ahead.
The Group aims to improve the efficiency of transport, ensuring a correct balance between levels of service and operating
costs, without overlooking environmental and safety issues.
In addition to the normal new issues in connection with various current events, the Philately Programme for 2010 will
include issues with a high degree of commercial impact dedicated to cultural and artistic content commemorating
individuals, events and exhibitions such as: the issue to mark the 150th anniversary of the Expedition of the Thousand,
and stamps to commemorate Giorgio Perlasca one hundred years after his birth, Michelangelo Merisi, known as “Il
Caravaggio”, on the four hundredth anniversary of his death, and Joe Petrosino, to mark the 150th anniversary of his
birth.
In the Express Delivery, Logistics and Parcels segment of Postal Services, the Group, in addition to striving to cut
operating costs, will continue its efforts to strengthen its domestic market positioning, by boosting the flexibility of its
offering. This will involve completing preparations for the launch of the Pacco Voluminoso service for bulky packages; the
launch of Pay pack, the new prepaid card to be used to pay for express delivery services and that will replace the prepurchased coupons currently in use; activation of a new option enabling customers to make online payments for shipments
88
and other services linked to the Postacelere1 plus, Paccocelere1 plus and Paccocelere 3 products; extension of the Home
Box offering, with the addition of a web service for printing and consulting delivery reports for shipments; and extension
of the end-to-end tracking system for parcels.
In December 2009 the Financial Services segment witnessed the operational rollout of the new account for consumers,
“BancoPosta Più”, which will be progressively launched commercially in early 2010. The offering aims to attract new
customers and boost customer loyalty, providing advantages for people who choose BancoPosta as their main bank. By
signing up to and using products linked to their current account (for example, the payment of their salary directly into their
bank account and direct debits) and using the new credit card, customers will not have to pay any current account,
Postamat card or credit card charges.
In addition to the new account for consumers, 2010 will see an extension of the “In Proprio” range of products for small
businesses (in part the result of BancoPosta joining the CBI Consortium, the body that manages Interbank Corporate
Banking services) via the release of innovative services in line with its bank offering.
In order to consolidate BancoPosta’s presence on alternative channels and exploit the BancoPosta Click current account,
the introduction of the new online security tools launched during 2009 will continue in 2010. Above all, the migration of
BancoPostaonline and BancoPosta Click customers (around 1 million) to the strong authentication system, which uses
“disposable” passwords, will be completed. The range of online current account services will also be extended, following
the launch of the online Moneygram service in November 2009, with an online trading platform. The online investment
service for funds, equities and bonds will bring the offering into line with market standards, meeting the needs of more
sophisticated customers, compared with those requiring only basic current account services.
The Company will continue its strong commitment to taking and managing postal savings deposits, which represents an
important source of revenue.
Loan products will see a further expansion of the number of post offices equipped to handle the Quinto BancoPosta
product, whilst the Prestito BancoPosta product is to be restyled and the Prontissimo offering diversified.
The Electronic Money segment will see continued migration towards payment cards with microchips, a change involving
not only debit cards, but also prepaid and credit cards.
The Company has also set itself a further objective for 2010 regarding collection systems, involving membership of the
interbank payments clearing system, which will enable the exchange of funds and accounting settlement for collection
orders, interbank direct debits and payments against notice.
In terms of bond products, the Company continued to focus on plain bonds, rather than the optional type, in accordance
with customer needs.
Work on establishing the Banca del Mezzogiorno (or “Bank for southern Italy”) will begin in 2010. In view of its widespread
presence and existing technology infrastructure, Poste Italiane is due to play a leading role in the new bank.
In the Insurance Services segment, 2010 will see the Group continue to focus primarily on the sale of life policies, and
the development of pension funds and personal protection products. Given the current macroeconomic outlook, the
investment policy will continue to be based on prudent asset allocation. Whilst the value of Poste Vita’s portfolio securities
is tied to the performance of the financial markets, the company’s results should be in line with returns on the investment
of premiums. Following receipt of the necessary authorisations, the company, via its subsidiary, Poste Assicura, will offer
a number of general insurance products.
Regarding the organisation and development of Uuman Resources, actions designed to optimise the use of staff will
continue via further development of the organisational model which, by strengthening the delegation system, will increase
the autonomy of local structures in order to more effectively achieve strategic goals.
The outlook for 2010 points to a slow recovery, backed by expansive monetary policy and low interest rates. There
continues to be great uncertainty about the pace of the recovery, above all in the medium term, as this is linked to both
10. Outlook 89
overseas demand, with the world economy struggling to return to strong growth, and to the risk that labour market
conditions may continue to be weak for some time to come. This could put a further brake on consumer spending and thus
on industrial output.
Despite the efforts of the Company, in terms of both operating activities and initiatives, and ongoing attention to efficiency
and cost containment, the difficult operating environment will make it hard to maintain current levels of profitability.
90
11. OTHER INFORMATION
Related party transactions
The principal transactions conducted by the Group regard its shareholders, the Ministry of the Economy and Finance and
Cassa Depositi e Prestiti, with particular reference to the management of postal current account services and postal
savings deposits.
Details of the related party transactions of Gruppo Poste Italiane and the Parent Company are provided in note 43 in the
consolidated financial statements and in note 36 in the separate financial statements.
Legislative Decree 196 of 30 June 2003
In compliance with Legislative Decree 196 of 30 June 2003, the “Data Protection Act” (“Codice in materia di protezione
dei dati personali”), the Company has updated its Data Protection Planning Document, which describes the Company’s
overall organisation, its technology infrastructure, and the distribution of roles and responsibilities within the departments
involved in the processing of personal data, as well as monitoring of the correct application of the minimum security
requirements provided for by the law. The update has involved the addition of references to company regulations which,
in addition to procedures, include notes, instructions, references to the intranet, forms, policies, minutes and other relevant
documents.
11. Other information | 12. Board of directors’ proposals to shareholders 91
12. BOARD OF DIRECTORS’ PROPOSALS
TO SHAREHOLDERS
The Board of Directors proposes that the General Meeting of shareholders:
• approve the financial statements of Poste Italiane SpA for the year ended 31 December 2009, consisting of the statement
of financial position, the separate income statement, the statement of comprehensive income, the statement of changes
in equity, the statement of cash flows and the notes, accompanied by the Directors’ Report on Operations;
• allocate profit for the year of 736,660,139 euros as follows:
a) 38,640,018 euros to the legal reserve;
b) the remaining amount in accordance with the resolutions to be passed by the General Meeting, giving due
consideration to the level of working capital represented by amounts due from the Public Sector and the Company’s
capital requirements, and taking account of growth in the Group’s financial and insurance services.
92
APPENDIX – KEY PERFORMANCE INDICATORS
FOR PRINCIPAL GRUPPO POSTE ITALIANE COMPANIES
The figures shown in the tables below reflect the financial and operational indicators (deduced from the reporting packages)
of the principal Group companies prepared in accordance with International Financial Reporting Standards (IFRS) and
approved by the boards of directors of the respective companies.
Postel SpA
Increase/(Decrease)
(€000)
Revenue
Operating profit
Profit for the period
Investment
Equity
Permanent workforce - end of period
Flexible workforce - average
2008
2009
Amount
%
264,169
22,292
12,354
36,696
118,396
992
116
249,764
20,762
19,505
21,423
138,400
1,020
115
(14,405)
(1,530)
7,151
(15,273)
20,004
28
(1)
(5.5)
(6.9)
57.9
(41.6)
16.9
2.8
(0.9)
The company employed on average 9 people seconded from the Parent Company (8 in 2008).
PostelPrint SpA
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
n/s: not significant
2008
2009
Amount
%
101,679
8,811
5,489
1,025
28,466
233
35
98,789
6,302
4,237
1,212
32,768
233
24
(2,890)
(2,509)
(1,252)
187
4,302
n/s
(11)
(2.8)
(28.5)
(22.8)
18.2
15.1
n/s
(31.4)
Appendix - Key performance indicators for principal Gruppo Poste Italiane Companies 93
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
455,508
1,686
302
17,349
104,460
1,246
40
422,492
(23,444)
(23,529)
6,840
81,198
1,276
1
(33,016)
(25,130)
(23,831)
(10,509)
(23,262)
30
(39)
(7.2)
n/s
n/s
(60.6)
(22.3)
2.4
(97.5)
2008
2009
Amount
%
46,156
295
(546)
11,334
11,390
77
5
73,185
(5,365)
(6,011)
4,714
5,453
80
4
27,029
(5,660)
(5,465)
(6,620)
(5,937)
3
(1)
58.6
n/s
n/s
(58.4)
(52.1)
3.9
(20.0)
Italia Logistica Srl (*)
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
Since 1 August 2008 the company has been accounted for using proportionate consolidation. In the previous tables it was consolidated on a line-by-line basis.
(*)
Poste Tutela SpA
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
78,940
1,249
842
3
6,406
-
79,949
1,338
771
112
7,177
4
1,009
89
(71)
109
771
4
1.3
7.1
(8.4)
n/s
12.0
n/s
94
Poste Vita SpA(*)
Increase/(Decrease)
(€000)
Premiums written less outward reinsurance premiums
Financial assets
Balance of technical account for life assurance
and Financial liabilities at fair value
Equity
2008
2009
Amount
%
5,523,308
64,122
30,773,239
7,091,501
107,878
38,279,074
1,568,193
43,756
7,505,835
28.4
68.2
24.4
31,149,080
965,561
124
37,617,920
1,070,734
148
6,468,840
105,173
24
20.8
10.9
19.4
The figures shown have been prepared in accordance with IFRS and therefore may not coincide with those in the financial statements prepared under
Italian GAAP and in accordance with the Italian Civil Code.
(*)
Increase/(Decrease)
(€000)
Fee income
Net fee income
Financial assets (liquidity and securities)
Equity
2008
2009
Amount
%
40,432
18,377
9,795
43,446
34,303
11
31,242
27,405
15,122
52,443
49,377
11
(9,190)
9,028
5,327
8,997
15,074
n/s
(22.7)
49.1
54.4
20.7
43.9
n/s
Postecom SpA
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
68,980
6,226
3,756
6,254
41,297
241
9
57,059
423
(1,612)
6,101
39,770
241
11
(11,921)
(5,803)
(5,368)
(153)
(1,527)
n/s
2
(17.3)
(93.2)
n/s
(2.4)
(3.7)
n/s
22.2
Appendix - Key performance indicators for principal Gruppo Poste Italiane Companies 95
PosteMobile SpA(*)
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
38,176
(15,866)
(12,689)
8,392
2,715
70
-
98,533
(8,048)
(6,795)
14,231
9,415
110
1
60,357
7,818
5,894
5,839
6,700
40
1
n/s
(49.3)
(46.4)
69.6
n/s
57.1
n/s
The figures shown have been prepared in accordance with IFRS and therefore may not coincide with those in the financial statements prepared under
Italian GAAP and in accordance with the Italian Civil Code.
(*)
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
77,449
53,098
37,592
354
397,342
7
44,919
29,294
19,941
353
417,278
7
(32,530)
(23,804)
(17,651)
(1)
19,936
n/s
(42.0)
(44.8)
(47.0)
(0.3)
5.0
n/s
Posteshop SpA
Increase/(Decrease)
(€000)
Revenue
Operating profit
Investment
Equity
2008
2009
Amount
%
67,737
966
484
117
7,326
36
60,115
(1,436)
(1,545)
261
5,806
38
(7,622)
(2,402)
(2,029)
144
(1,520)
2
(11.3)
n/s
n/s
n/s
(20.7)
5.6
96
GLOSSARY
Distribution centres: physical sites serving their local area, carrying out the basic delivery service, internal handling,
support services for the transport network, other external activities not directly linked to distribution and, on occasion, other
high-value-added services.
E-government: the computerisation of Government processes, enabling documents to be processed and managed in
digital format, by using information and communication technologies to optimise the work of public bodies, and offering
customers (the general public and companies) faster services, as well as new services via, for example, the websites of
the Government agencies concerned.
Host-to-Host: Host-to-Host solutions are designed to meet the specific needs of customers to enable them to send mail
in digital format directly from their management and IT platforms.
HUB: a type of junction around which any type of network is created (computer, satellite, telephone, transport, internet,
marketing), which unites, multiplies and channels access to the network.
Phishing: an attempt to criminally and fraudulently acquire confidential information by masquerading as a trustworthy
entity in an electronic communication.
SEPA: Simple Euro Payments Area
Service continuity: in order to safeguard business continuity in the event of a crisis, including those of a serious nature,
the Bank of Italy and the CONSOB are coordinating a working group to look at service continuity in the Italian financial
system. The group involves participants from Italy’s leading banking groups and the companies that manage the various
networks and infrastructures that are key to the smooth operation of the financial system.
Shared services: is the name given to a strategy whereby organisations in which certain functions, such as accounting
and human resources, are common to several business units. This involves the reorganisation of business support
activities, with repetitive and transaction-type processes being managed by a single internal service provider within the
organisation itself.
Small to Medium Business (SMB): this customer segment includes small and medium enterprises that, in the course of
business, regularly use postal and financial services.
SOHO (Small Office Home Office): this customer segment includes professional people who, in the course of business,
regularly use postal and financial services.
Strong Authentication: authentication with two elements, or authentication with several elements, is a system based on
the joint use of two methods of individual authentication.
Glossary 97
Temporary services: these services are provided by post offices on a temporary basis for: conferences, congresses,
rallies, trade fairs, exhibitions, celebrations of historical events, stamp exhibitions, sporting and other events of public
interest that may raise Poste Italiane SpA’s visibility. Operations available at these temporary facilities include mail
collection, collection and formation of ordinary and special despatches, sale of postage and revenue stamps and philately
products.
VOIP: Voice over Internet Protocol.
101
Statement of financial position
Income statement
Statement of comprehensive income
Statement of changes in Equity
Statement of cash flows
Notes to the consolidated financial statements
1 - Introduction
2 - Basis of accounting
3 - Risk management
4 - Operating segments
5 - Property, plant and equipment
6 - Investment property
7 - Intangible assets
8 - Investments accounted for using the equity method
9 - Financial assets
10 - Deferred taxes
11 - Other non-current assets
12 - Inventories
13 - Trade receivables
14 - Current tax assets
15 - Other current receivables and assets
16 - Assets and liabilities attributable to BancoPosta
17 - Cash and cash equivalents
18 - Non-current assets held for sale
19 - Share capital
20 - Shareholder transactions
21 - Earnings per share
22 - Reserves
23 - Technical provisions for insurance business
24 - Provisions for liabilities and charges
25 - Staff termination benefits
26 - Financial liabilities
27 - Trade payables
28 - Current tax liabilities
29 - Other liabilities
30 - Revenues from sales and services
31 - Earned premiums
32 - Other income from financial and insurance activities
33 - Other operating income
34 - Cost of goods and services
35 - Change in technical provisions for insurance business
and other claims expenses
36 - Other expenses deriving from financial and insurance activities
37 - Staff costs
38 - Depreciation, amortisation and impairments
39 - Capitalised costs and expenses
40 - Other operating costs
41 - Finance income and costs
42 - Income tax expense
43 - Related party transactions
44 - Other information
45 - Information on investments
46 - Events after 31 December 2009
Attestation of the separate and consolidated financial statements for the year
ended 31 December 2009 pursuant to art 154-bis of Legislative Decree 58/1998
Statutory Auditors’ Report
Independent Auditors’ Report
102
103
104
105
106
107
107
108
127
149
151
154
155
158
161
167
169
170
171
176
176
178
183
184
185
186
186
186
187
187
189
190
195
196
197
200
204
204
205
206
208
209
209
211
211
212
213
214
215
220
225
226
227
228
229
102
STATEMENT OF FINANCIAL POSITION
ASSETS
(€000)
Note
related party
transactions
31 Dec 2009
(Note 43)
related party
transactions
31 Dec 2009
(Note 43)
related party
transactions
1 Jan 2008
(Note 43)
Non-current assets
Investment property
Intangible assets
Investments accounted for using the equity method
Financial assets
Deferred tax assets
Other non-current assets
Total
[5]
[6]
[7]
[8]
[9]
[10]
[11]
3,123,942
153,676
513,550
14,659
34,016,430
644,844
838,744
39,305,845
14,659
536,693
1,466
3,236,323
172,425
452,962
7,448
27,806,343
641,285
688,941
33,005,727
7,448
665,518
1,466
3,142,409
193,812
384,961
9,444
25,761,616
570,182
614,225
30,676,649
9,444
683,724
-
[16]
39,512,159
6,804,803
38,909,191
5,546,358
38,940,311
6,870,168
Current assets
Inventories
Trade receivables
Current tax assets
Other current receivables and assets
Financial assets
Cash and cash equivalents
[12]
[13]
[14]
[15]
[9]
[17]
52,595
4,177,952
50,358
506,338
5,296,526
2,214,918
52
335,169
53,479
3,573,672
43,063
530,614
4,563,836
1,799,295
77
343,448
53,619
4,160,741
129,361
409,707
4,679,704
2,592,266
47
461,411
2,038,783
12,122,552
-
485,572
2,346,134
11,596,370
-
759,438
10,192,570
-
1,285
-
3,472
-
543
-
Escrow account (EC Decision of 16 July 2008)
Total
[18]
TOTAL ASSETS
90,941,841
83,514,760
79,810,073
LIABILITIES AND EQUITY
(€000)
Equity
Share capital
Reserves
Retained earnings
Total Equity attributable to owners of the Parent
Minority interest
Total
Note
[19]
[22]
related party
transactions
31 Dec 2009
(Note 43)
1,306,110
663,618
2,605,182
4,574,910
13
4,574,923
-
related party
transactions
31 Dec 2009
(Note 43)
1,306,110
265,245
1,850,294
3,421,649
13
3,421,662
-
1 Jan 2008
1,306,110
2,140
1,764,770
3,073,020
3,073,020
related party
transactions
-
Non-current liabilities
Deferred tax liabilities
Other liabilities
Total
[23]
[24]
[25]
[26]
[10]
[29]
35,927,121
335,201
1,445,954
3,536,032
417,328
84,701
41,746,337
33,011
512,668
6
28,333,062
339,486
1,514,928
4,878,090
310,226
146,249
35,522,041
33,393
679,517
6
24,929,307
349,596
1,478,650
6,286,751
362,976
216,539
33,623,819
41,315
840,235
6
[16]
37,718,321
80,457
37,063,652
576,817
37,334,548
799,667
Current liabilities
Trade payables
Current tax liabilities
Other liabilities
Other current payables and liabilities
[24]
[27]
[28]
[29]
898,984
1,789,900
79,570
13,963
288,949
-
822,736
1,855,513
73,647
89,440
314,511
-
517,025
1,785,918
27,271
17,311
278,046
-
1,787,837
2,345,969
6,902,260
87,630
168,200
1,603,319
485,572
2,666,618
7,507,405
65,486
485,572
161,542
1,597,228
1,851,244
5,778,686
56,390
155,971
Amount payable to parent (EC Decision of 16 July 2008)
Total
TOTAL LIABILITIES AND EQUITY
[26]
90,941,841
83,514,760
79,810,073
Statement of financial position | Income statement 103
INCOME STATEMENT
(€000)
of which non-recurring income
Earned premiums
Other income from financial and insurance activities
Total revenue
Change in technical provisions for insurance business
and other claims expenses
Other expenses deriving from financial and insurance
activities
Staff costs
of which non-recurring costs/(income)
of which non-recurring costs
Operating profit/(loss)
Note
related party
transactions
2009
(Note 43)
2008
related party
transactions
(Note 43)
10,343,768
7,112,404
2,431,018
210,641
20,097,831
2,690,980
12,202
-
10,371,725
5,534,985
1,788,459
158,001
17,853,170
2,548,132
4,816
-
[34]
2,550,186
-
162,233
-
2,588,996
1,371
192,045
-
[35]
8,626,318
-
5,180,313
-
[36]
[37]
303,400
6,222,356
(121,007)
555,115
(30,338)
271,300
1,599,494
29,022
31,251
-
1,690,738
6,042,107
(203,104)
539,952
(44,217)
384,218
1,469,692
18,476
117,809
-
188,497
177,354
-
33,474
88,248
-
253,294
19,673
302,583
4,000
59,180
122,265
-
[30]
[31]
[32]
[33]
[4]
[38]
[39]
[40]
Finance costs
Finance income
Profit/(loss) on investments accounted for using the
equity method
Profit/(loss) before tax
[41]
[8]
1,212
1,589,563
-
355
1,519,336
-
Income tax expense
of which non-recurring expense/(benefit)
[42]
685,573
(62,145)
-
636,754
(92,518)
-
[41]
PROFIT FOR THE YEAR
903,990
882,582
attributable to owners of the Parent
attributable to minority interest
903,990
-
882,582
-
Earnings per share
[21]
0,692
0,676
Diluted earnings per share
[21]
0,692
0,676
Consolidated financial statements
104
STATEMENT OF COMPREHENSIVE INCOME
(€000)
Available-for-sale financial assets
Increase(Decrease) in fair value during the period
Transfers to profit or loss
Cash flow hedges
Increase/(Decrease) in fair value during the period
Actuarial gains/(Losses) on provisions for staff termination benefits
Taxation of items recognised directly in, or transferred from, Equity
Total other components of comprehensive income
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Note
2009
2008
903,990
882,582
[22.1]
[22.1]
566,332
(32,651)
287,882
(43,926)
[22.1]
[22.1]
[25.1]
[10.5]
3,701
(6,409)
50,766
(182,468)
399,271
23,646
66,440
(96,606)
(67,931)
169,505
1,303,261
1,052,087
Statement of comprehensive income I Statement of changes in Equity 105
STATEMENT OF CHANGES IN EQUITY
Equity
Reserves
(€000)
Note
Balance at 1 January 2008
Total comprehensive income for the period
Share
capital
Legal
reserve
Retained
earnings/
Fair value
Cash flow (Accumulated
reserve hedge reserve
losses)
1,306,110
75,116
105,947
(178,923)
1,764,770
3,073,020
-
3,073,020
-
-
164,672
61,238
826,177
1,052,087
-
1,052,087
Minority
Total interest
Total
Equity
Appropriation of profit to Reserves
[22]
-
37,195
-
-
(37,195)
-
-
-
Dividends paid
[20]
-
-
-
-
(245,000)
(245,000)
-
(245,000)
Other shareholder transactions
(after tax effect of 5,779 thousand euros)
-
-
-
-
(458,458)
(458,458)
-
(458,458)
Change in basis of consolidation
-
-
-
-
-
-
13
13
1,306,110 112,311
270,619
(117,685)
1,850,294
3,421,649
13
3,421,662
-
-
363,969
(1,636)
940,928 (*)
1,303,261
-
1,303,261
Balance at 31 December 2008
Total comprehensive income for the period
Appropriation of profit to Reserves
[22]
-
36,040
-
-
(36,040)
-
-
-
Dividends paid
[20]
-
-
-
-
(150,000)
(150,000)
-
(150,000)
1,306,110 148,351
634,588
(119,321)
2,605,182
4,574,910
13
4,574,923
(*)
This item includes profit for the year of 903,990 thousand euros, actuarial gains on provisions for staff termination benefits of 50,766 thousand euros, net
of the related current and deferred taxation of 13,828 thousand euros.
106
STATEMENT OF CASH FLOWS
(€000)
Note
2009
2008
Profit/(loss) for year
[38]
Net provisions for staff
[37]
Net provisions for restructuring charges
[37]
Net provisions for liabilities and charges
[40]
Use of provisions for liabilities and charges
[24]
Provisions for staff termination benefits
[25]
Termination benefits paid
[25]
Changes in technical provisions for insurance busines
(Gains)/Losses on disposals
[33]
(Gains)/Losses on financial assets/liabilities measured at fair value
(Income)/Expenses from financial and insurance activities
(Dividends)
[41]
Dividends received
(Finance income realised)
[41]
(Finance income in form of interest)
[41]
Interest received
Interest expense and other finance costs
[41]
Interest paid
Losses and impairments/(Recoveries) on receivables
[40]
Tax and witholding tax paid
Other changes
Cash generated by operating activities before changes in working capital
[a]
Changes in working capital:
(Increase)/Decrease in Inventories
[12]
(Increase)/Decrease in Trade receivables
(Increase)/Decrease in Other receivables and assets
Increase/(Decrease) in Trade payables
[27]
Increase/(Decrease) in Other liabilities
Cash generated by/(used in) changes in working capital
[b]
Increase/(Decrease) in liabilities attributable to BancoPosta
Payment of liabilities linked to financial contracts issued by insurance segment
[26]
Net cash generated by/(used for) financial assets at fair value through
profit or loss attributable to insurance segment
Net cash generated by/(used for) financial assets held for trading attributable to BancoPosta
[16]
Net cash generated by/(used for) available-for-sale financial assets attributable to insurance segment [9]
Net cash generated by/(used for) available-for-sale financial assets attributable to BancoPosta [16]
(Increase)/Decrease in other assets attributable to BancoPosta
Cash generated by/(used for) financial assets and liabilities attributable
to BancoPosta and insurance segment
[c]
Net cash flow from /(for) operating activities
[d]=[a+b+c]
- of which related party transactions
Investing activities:
[5]
Investment property
[6]
Intangible assets
[7]
Investments
[8]
Other financial assets
Cash used for investments in held-to-maturity investments attributable to Banco Posta (*)
[16]
Disposals:
Property, plant and equipment, investment property and assets held for sale
Investments
[8]
Cash generated by investment in held-to-maturity investments attributable to Banco Posta (*)
[e]
Net cash flow from /(for) investing activities (*)
Proceeds from/(Repayments of) long-term borrowings
(Increase)/Decrease in loans and receivables
Increase/(Decrease) in short-term borrowings
Dividends paid
[20]
Closure of escrow acount (EC Decision of 16 July 2008)
[17]
Decrease in amount payable to parent (EC Decision 16 July 2008)
[29]
Opening of escrow account (EC Decision of 16 July 2008)
[17]
Net cash flow from/(for) financing activities and shareholder transactions
[f]
Net increase/(decrease) in cash and cash equivalents
[g]=[d+e+f]
[17]
2,346,134
1,589,563
555,115
198,074
115,000
120,199
(391,220)
399
(82,644)
6,966,613
(60,326)
(960,856)
(428,891)
(154)
131
(502)
(171,906)
149,930
185,312
(114,559)
31,692
(767,923)
(8,148)
6,924,899
759,438
1,519,336
539,952
431,428
133,636
(305,220)
430
(125,666)
3,264,895
(33,204)
643,514
(275,486)
(1,628)
1,310
(28,517)
(258,473)
268,003
247,885
(143,933)
114,377
(690,922)
(4,128)
5,297,589
884
(578,985)
(168,805)
(65,613)
162,119
(650,400)
576,492
(1,291,815)
140
524,610
(241,045)
69,595
(43,025)
310,275
(282,001)
(213,707)
2,276,353
1,041,786
(7,578,508)
(1,504,262)
1,064,366
(863,657)
(1,141,552)
(1,617,744)
51,435
1,018,392
(5,415,588)
858,911
(2,258,960)
(3,048,834)
2,559,030
2,041,679
(288,896)
(607)
(218,180)
(5,999)
(204,454)
(3,281,112)
(485,382)
(862)
(226,409)
(319)
(608,878)
(1,778,988)
85,623
516,280
2,740,493
(656,852)
(53,036)
(205,521)
145,484
(299,373)
(150,000)
485,572
(485,572)
(509,410)
(650,279)
(307,351)
2,038,783
57,771
4,000
154,653
2,256,695
1,437
(626,282)
(187,462)
(181,774)
197,077
369,217
(245,000)
(485,572)
(346,052)
(203,070)
1,586,696
2,346,134
(*)
This item includes BancoPosta’s portfolio of held-to-maturity investments.
Statement of cash flows I Notes to the consolidated financial statements 107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 - INTRODUCTION
Poste Italiane SpA (hereinafter also referred to as the “Parent Company”) derives from the conversion of the Public Entity,
Poste Italiane, under Resolution 244 of 18 December 1997 passed by the Interministerial Economic Planning Committee.
The Company’s registered office is at Viale Europa 190, Rome (Italy) and it is 65% owned by the Ministry of the Economy
and Finance (hereinafter also referred to as the “MEF”) and 35% owned by Casa Depositi e Prestiti SpA (CDP).
Gruppo Poste Italiane (the Group) provides a Servizio Postale Universale (a Universal Postal Service, provided under a
Universal Service Obligation) in Italy, whilst offering integrated communication, logistics, financial and insurance products
and services throughout the country via its national network of around 14,000 post offices. The Group operates in the three
segments of Postal Services, Financial Services and Insurance Services, which are supplied by the various business units
and Group companies. Postal Services include Mail, Express Delivery, Logistics and Parcels, and Philately. Financial
Services regard the activities of BancoPosta listed in art. 2 of Presidential Decree 144 of 14 March 2001, and primarily refer
to the collection of public deposits in all their forms, the supply of payment services, foreign currency trading, the
promotion and marketing of loans issued by banks and other authorised financial institutions, and the provision of
investment services. Insurance Services are provided by the subsidiary, Poste Vita, which operates in ministerial life
assurance branches I, III and V, and in ministerial non-life insurance branches I and II.
The Group increasingly aims to supply integrated services and innovative solutions to the general public, to firms and to
central and local government by exploiting its own distribution channels as well as the multiple and complementary
competencies of Group companies.
These consolidated financial statements for the year ended 31 December 2009 have been prepared in euros, the currency
of the economy in which the Group operates. They consist of the statement of financial position, the separate income
statement, the statement of comprehensive income, the statement of changes in Equity, the statement of cash flows and
the following notes. All amounts in the consolidated financial statements and the notes are shown in thousands of euros,
unless otherwise stated.
108
2 - BASIS OF ACCOUNTING
2.1 - BASIS OF PREPARATION
Gruppo Poste Italiane prepares its consolidated financial statements under the International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board (IASB), and adopted by the European Union in EC Regulation
1606/2002 of 19 July 2002, and pursuant to Legislative Decree 38 of 20 February 2005, which introduced regulations
governing the adoption of IFRS in Italian law.
The term IFRS includes all the International Financial Reporting Standards, International Accounting Standards (IAS) and
interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC, previously known as the
Standing Interpretations Committee or SIC), adopted by the European Union and contained in the EU regulations published
through to 24 March 2010, the date on which the Board of Directors of Poste Italiane SpA approved these consolidated
financial statements.
Legislative Decree 195 of 6 November 2007, which implemented Directive 2004/109/EC that standardised the
transparency requirements relating to the information published by issuers whose financial instruments are traded on a
regulated market (the so-called Transparency Directive), has amended Legislative Decree 58 of 24 February 1998 (the
Consolidated Law on Finance), introducing the definition “listed issuers whose home member State is Italy”. Given that
Poste Italiane SpA falls within this definition as an issuer of bonds listed on the Luxembourg Stock Exchange, during
preparation of this document the CONSOB regulations contained in Resolution 15519 of 27 July 2006 and in Ruling
DEM/6064293 of 28 July 2006 were taken into account.
The basis of consolidation and the accounting policies adopted reflect the fact that the Group will remain fully operational
in the foreseeable future, in accordance with the going concern assumption. The basis of consolidation and the accounting
policies are described in notes 2.2 and 2.3, and are consistent with those applied in the preparation of the consolidated
financial statements for the year ended 31 December 2008. The statement of financial position1 has been prepared on the
basis of the current/non-current distinction2. The format of the separate income statement is based on the nature of
expenses. The statement of cash flows has been prepared in accordance with the indirect method3.
As required by CONSOB Resolution 15519 of 27 July 2006, each item in the statement of financial position, separate
income statement and statement of cash flows shows the amounts deriving from related party transactions. The separate
income statement also shows, where present, income and expenses deriving from material non-recurring transactions or
from non-recurring events. Taking account of the different nature and the number of transactions carried out by Group
companies, many items of income and expense of a non-recurring nature may occur with significant frequency. These
items of income and expense are only presented separately when they are both of an exceptional nature and were
generated by a transaction of a material nature.
In order to allow comparison on a like-for-like basis with the amounts for 2009, certain items in the statement of financial
position, separate income statement and statement of cash flows at and for the year ended 31 December 2008 have been
reclassified.
At the date of approval of these consolidated financial statements, there is no established practice on which to base
interpretation and application of a number of new, or revised, international accounting standards. Moreover, at the date of
approval of these consolidated finance statements the tax authorities had yet to issue systematic official interpretations
regarding all the effects of the tax-related measures contained in Legislative Decree 38 of 20 February 2005, Law 244 of 24
December 2007 (the 2008 Budget Law) and the Ministerial Decree of 1 April 2009, which have introduced numerous
changes to IRES and IRAP. The consolidated finance statements have, therefore, been prepared on the basis of the best
available knowledge of IFRS and taking account of best practice in this regard. Any future changes or updated interpretations
will be reflected in subsequent years, in accordance with the specific procedures provided for by the related standards.
1. As more fully described in note 2.3 - Accounting standards and interpretations applied from 1 January 2009, the statement of financial position includes
amounts at 1 January 2008 following application of IFRIC 13.
2. Current assets include assets (such as inventories and trade receivables) that are sold, consumed or realised as part of the normal operating cycle even
when they are not expected to be realised within twelve months after the reporting period (paragraph 68, Revised IAS 1).
3. Under the indirect method, net cash from operating activities is determined by adjusting profit/(loss) for the year to reflect the impact of non-cash items,
any deferment or provisions for previous or future operating inflows or outflows, and revenue or cost items linked to cash flows from investing or financing
activities.
Notes to the consolidated financial statements 109
2.2 - BASIS OF CONSOLIDATION
Gruppo Poste Italiane’s consolidated financial statements include the financial statements of the Parent Company and of
the companies over which it directly or indirectly exercises control from the date on which control is obtained until the date
on which control is no longer held by the Group. Control is exercised both via direct or indirect ownership of voting shares,
and via the exercise of dominant influence, defined as the power to govern the financial and operating policies of the entity,
including indirectly on the basis of contractual or legal agreements, obtaining the related benefits, regardless of the nature
of the equity interest. In determining control, potential voting rights exercisable at the end of the reporting period are taken
into account.
The financial statements used for consolidation purposes have been specifically prepared at 31 December 2009, after
appropriate adjustment, where necessary, to bring them into line with the accounting standards of the Parent Company.
Subsidiaries that, in terms of their size or operations, are irrelevant to a true and fair view of the Group’s results of
operations and financial position, are not consolidated.
Programma Dinamico SpA, a vehicle set up under Law 130 of 30 April 1999 that matches the definition of control
established in the combined provisions of IAS 27 and SIC 12, is not consolidated as its separate statement of financial
position, income statement and cash flows are not material. Certain index-linked policies sold by Poste Vita SpA have
invested in the synthetic securities issued by this company in previous years and held in separately managed accounts (see
the description in note 3 – Financial risk management – Other risks – Reputational risk). These securities are accounted for
in the company’s financial statements in Class D investments, where the risk is transferred to policyholders. In Gruppo
Poste Italiane’s consolidated financial statements these synthetic securities are accounted for in financial assets, with
corresponding technical provisions accounted for in liabilities.
The criteria adopted for consolidation on a line-by-line basis are as follows:
• the assets, liabilities, costs and revenues of consolidated entities are accounted for on a line-by line basis, where
applicable attributing the minority interest in Equity and the profit/(loss) for the period to specific items reported
separately in consolidated Equity and the consolidated income statement;
• business combinations, entailing the acquisition of control of an entity, are accounting for using the purchase method.
The cost of acquisition is calculated on the basis of the fair values of the assets given, the liabilities incurred and the
equity instruments issued by the acquirer, plus any directly attributable acquisition costs incurred. After re-determination
of the fair values of the assets and liabilities acquired and the cost of acquisition, any difference between the cost of
acquisition and the fair values of the assets and liabilities acquired is, if positive, recognised as a consolidation difference,
or, if negative, recognised in the income statement;
• acquisitions of minority interests in entities already controlled by the Group are not accounted for as acquisitions, but as
changes in equity; in the absence of a relevant accounting standard, the Group recognises any difference between the
cost of acquisition and the related share of equity acquired in Equity;
• significant transactions between companies consolidated on a line-by-line basis and unrealised gains and losses on such
transactions are eliminated, with the related tax effects, as are intercompany payables and receivables, costs and
revenues, and finance costs and income;
• gains and losses deriving from the disposal of investments in consolidated companies are recognised in the income
statement based on the difference between the sale price and the corresponding share of consolidated equity sold.
Investments in joint ventures are accounted for using proportionate consolidation, reporting the Group’s share of jointly
controlled entities’ assets, liabilities, income and expenses on a line-by-line basis. The carrying amounts of these entities’
current and non-current assets and liabilities, income and expenses are reported in note 45.2.
Investments in subsidiaries (note 45.3) that are not significant and are not consolidated, and those in companies over which
the Group exerts significant influence (associates, in which it is assumed that the Group holds an interest of between 20%
110
and 50%), are accounted for using the equity method. An exception is made for instances in which it is evident that
application of this method of accounting does not influence the Group’s results of operations or financial position. In such
cases, the investment is recognised at cost less any impairment losses.
The equity method is as follows:
• the Group’s share of an associate’s post-acquisition profits or losses is recognised in the consolidated income statement
from the date on which significant influence or control is obtained until the date on which significant influence or control
is no longer exerted by the Group; provisions are made to cover a company’s losses that exceed the carrying amount of
the investment, to the extent that the Group has incurred legal or constructive obligations to cover such losses; changes
in the Equity of companies accounted for using the equity method not related to the profit/(loss) for the year are
recognised directly in Equity;
• unrealised gains and losses on transactions between the Parent Company/subsidiaries and the company accounted for
using the equity method are eliminated to the extent of the Group’s interest in the associate, unless the unrealised loss
provides evidence of an impairment.
The following table shows the number of subsidiaries by method of consolidation and measurement.
Subsidiaries
31 Dec 2009
31 Dec 2008
Consolidated on a line-by-line basis
Consolidated using proportionate consolidation
Consolidated using the equity method
16
1
8
16
1
10
Total companies
25
27
The following transactions took place during 2009:
• on 26 January Poste Italiane SpA’s Board of Directors approved the merger of the Poste Contact Consortium, 70% owned
by Poste Italiane SpA, 15% owned by Postecom SpA and 15% by Postel SpA4, with and into Poste Link Scrl, with effect
for tax and accounting purposes from 1 January 2010. On 8 March 2010, following registration of the merger, completed
on 24 February 2010, the consortium was cancelled from the Companies’ Register;
• Chronopost International Italia SpA (in liquidation), formerly a subsidiary of SDA Express Courier SpA, was cancelled from
the Companies’ Register on 28 May 2009;
• on 30 July the Poste Welfare consortium, formerly 51% owned by the Poste Contact consortium, was put into
liquidation. Application for the consortium’s cancellation from the Companies’ Register was filed on 23 December 2009
and this was done on 18 January 2010;
• the shareholder agreements previously entered into by the owners of Uptime SpA, in which SDA Express Courier SpA
has a 20% interest, expired on 22 December, meaning that the company no longer qualifies as a joint venture, but that
the Group continues to exert significant influence;
• on 22 December the Board of Directors of SDA Express Courier SpA approved a capital increase via Poste Italiane SpA’s
contribution of all the shares held in the subsidiary, Poste Italiane Trasporti SpA;
• on 23 December an extraordinary general meeting of Poste Assicura, a wholly owned subsidiary of Poste Vita SpA,
approved a capital increase of 4,900 thousand euros and a further contribution of 1 million euros to top up its “provision
for start-up costs” for the purpose of converting the company into a Non-life Company. The newly issued shares were
fully subscribed by the company’s sole shareholder.
A list of subsidiaries consolidated on a line-by-line basis and key information is supplied in note 45.1. Summary information
about investments in associates accounted for using the equity method is provided in notes 8.3 and 45.3.
4. On 8 October 2009 a general meeting of the Poste Contact consortium’s shareholders approved Postel SpA’s admission as a member of the consortium.
Following this, Postel SpA acquired a 15% interest in the consortium and Postecom SpA reduced its interest from 30% to 15%.
2.3 - SUMMARY OF SIGNIFICANT ACCOUNTING STANDARDS AND POLICIES
Gruppo Poste Italiane’s consolidated financial statements have been prepared on a historical cost basis, with the exception
of certain items that must be measured at fair value. The significant accounting standards and policies are described below.
Property, plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment losses. The
cost includes any directly attributable costs of making the asset ready for its intended use, and the cost of dismantling and
removing the asset to be incurred as a result of legal obligations requiring the asset to be restored to its original condition.
Borrowing costs incurred for the acquisition or construction of property, plant and equipment are recognised as an expense in
the period in which they are incurred (with the exception of borrowings costs directly attributable to the acquisition or
construction of a qualifying asset, in which case the borrowings costs are capitalised as part of the cost of that asset). The costs
incurred for routine and/or cyclical maintenance and repairs are recognised directly in the income statement in the year in which
they are incurred. The capitalisation of costs attributable to the extension, modernisation or improvement of assets owned by
the Group or held under lease is carried out to the extent that they qualify for separate classification as an asset or as a
component of an asset, applying the component approach, which states that each component with a different useful life and
value is recognised separately. The original cost is depreciated on a straight-line basis from the date the asset is available and
ready for use, with reference to the asset’s expected useful life.
The useful life and residual value of property, plant and equipment are reviewed annually and adjusted, where necessary, at the
end of each year. Land is not depreciated. When a depreciable asset consists of separately identifiable components, with useful
lives that are significantly different from those of the other components of the asset, each component is depreciated separately,
in application of the component approach, over a period that does not, however, exceed the life of the principal asset. The Group
has estimated the following useful lives for the various categories of property, plant and equipment:
Category
Buildings
Structural improvements to own assets
Plant
Electronic stations
Light constructions
Equipment
Furniture and fittings
Electrical and electronic office equipment
Motor vehicles
Automobiles
Leasehold improvements
Other assets
No. of years
25 - 33
20
3 - 10
6
10
5-8
5-8
3 - 10
4 - 10
4
estimated lease term (*)
3 - 10
(*) Or the useful life of the improvement if shorter than the estimated lease term.
Property assets and the related fixed plant and machinery located on land held under concession or sub-concession, which
is to be handed over free of charge to the grantor at the end of the concession term, are accounted for, on the basis of the
type of asset, in property, plant and equipment and depreciated on a straight-line basis over the shorter of the useful life
of the asset and the residual concession term.
Gains and losses deriving from the disposal or retirement of an asset are determined as the difference between the
disposal proceeds and the net carrying amount of the asset retired or sold, and are recognised in the income statement in
the year the transaction takes place.
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Investment property
Investment property regards land or buildings held to earn rentals or for capital appreciation or both, thus producing cash
flows that are largely separate from other assets. The same accounting standards and policies are applied to investment
property as those applied to property, plant and equipment.
Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance, which is controlled by the Group and
from which future economic benefits are expected to flow to it. Intangible assets are recognised at cost, including any
directly attributable costs of making the asset ready for its intended use, less accumulated amortisation, where applicable,
and any accumulated impairment losses. Borrowing costs incurred for the development of intangible assets are recognised
as an expense in the period in which they are incurred (with the exception of borrowings costs directly attributable to the
development of a qualifying asset, in which case the borrowings costs are capitalised as part of the cost of that asset).
Amortisation is applied from the date the asset is ready for use and is provided systematically on the basis of the remaining
useful life of the asset, or its estimated useful life.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the identifiable assets
and liabilities of the acquired entity at the date of acquisition. Goodwill attributable to investments accounted for using the equity
method is included in the carrying amount of the investment itself. Goodwill is not amortised on a systematic basis, but is tested
periodically for impairment. This test is performed with reference to the cash generating unit to which the goodwill is
attributable. An impairment loss is recognised in the income statement at the amount by which the carrying amount of the asset
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in
use, represented by the present value of the future cash flows expected to be derived from the cash generating unit and from
its disposal at the end of its useful life. Value in use is determined on the basis of the method described below in “Impairment
of assets”. Impairment losses are not reversed if the circumstances that resulted in the charge no longer exist.
When the impairment resulting from the test is higher than the carrying amount of the goodwill attributed to the cash generating
unit, the residual amount is attributed to the assets included in the cash generating unit in proportion to their carrying amount.
The minimum attributable amount is the higher of:
• the related fair value of the asset less costs to sell;
• the related value in use, as defined above.
Industrial patents, intellectual property rights, licences and similar rights
The costs of acquiring industrial patents, intellectual property rights, licences and similar rights are capitalised. Amortisation
is applied on a straight-line basis, in order to allocate the purchase cost over the shorter of the expected use life and the
related contract term from the date the right may be exercised.
Software
Costs associated with developing or maintaining software programmes are recognised in the income statement in the
period in which they are incurred. Costs that are directly associated with the production of identifiable and unique software
products controlled by the Group, and that will generate economic benefits beyond one year, are recognised as intangible
assets. Identifiable and measurable direct costs include the cost of staff involved in software development and an
appropriate portion of the relevant overheads. Amortisation is calculated on the basis of the estimated useful life of the
software, which is as a rule three years. Software specially developed for use in the provision of mobile
telecommunications services is amortised over a period of seven years.
Leased assets
Assets held under finance leases, where the risks and rewards of ownership are substantially transferred to the lessee,
are recognised at fair value or, if lower, at the present value of the minimum lease payments. The corresponding liability,
represented by the capital element of future lease payments, is recognised as a financial liability. Depreciation is calculated
on a straight-line basis, based on the useful lives of the various categories of asset, estimated applying the same
procedures previously described for property, plant and equipment and intangible assets.
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases.
Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease
term.
Impairment of assets
At the end of each reporting period, the Group reviews the value of its property, plant, equipment and intangible assets with
finite lives to assess whether there is any indication that an asset may be impaired. If any indication exists, the Group estimates
the recoverable amount of the asset in order to determine the impairment loss to be recognised in the income statement. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use, represented by the present value
of the future cash flows expected to be derived from the asset. In calculating value in use, future cash flow estimates are
discounted using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to
the business. The realisable value of assets that do not generate separate cash flows is determined with reference to the cash
generating unit to which the asset belongs. An impairment loss is recognised for the amount by which the carrying amount of
the asset, or the cash generating unit to which it belongs, exceeds its recoverable amount. When an impairment no longer
exists, the carrying amount of the asset is reinstated and the reversal recognised in the income statement. The reversal must
not exceed the carrying amount that would have been determined had no impairment loss been recognised and had
depreciation or amortisation been charged.
Financial instruments
Financial instruments include financial assets and liabilities that are classified on initial recognition, based on the business
purpose for which they were acquired. Purchases and sales of financial instruments are recognised in each category on
the transaction date, representing the date on which the Group commits to purchase or sell the asset, or, in the case of
the insurance business and BancoPosta’s operations, at the settlement date5. In BancoPosta’s case, this almost always
coincides with the transaction date.
Changes in fair value between the transaction date and the settlement date are, in any event, recognised in the
consolidated financial statements.
Financial assets
On initial recognition, financial assets are classified in one of the following four categories and accounted for as follows:
• Financial assets at fair value through profit or loss
This category includes: (a) financial assets held for trading, (b) those that qualify for designation at fair value through profit
or loss on initial recognition, and (c) derivative instruments, with the exception of the effective portion of those
designated as cash flow hedges. Financial assets in this category are accounted for at fair value and changes during the
period of ownership are recognised in profit or loss. Financial instruments in this category are classified as short-term if
they are “held for trading” or if they are expected to be realised within twelve months of the end of the reporting period.
Derivative instruments are treated as assets and liabilities depending on whether the fair value is positive or negative.
5. This is possible for transactions carried out on organised markets (the so-called “regular way”).
114
Fair value gains and losses on outstanding transactions with the same counterparty are offset, where contractually
permitted.
• Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market, and primarily regard amounts due from customers, including trade receivables. They are included in current assets,
except for maturities greater than twelve months after the end of the reporting period, which are classified as non-current
assets. These assets are carried at amortised cost6 using the effective interest method. If there is objective evidence of an
impairment, a provision for impairment is established on the basis of the present value of estimated future cash flows. The
resulting impairment loss is recognised in the income statement. When an impairment no longer exists, the carrying amount
of the asset is reinstated on the basis of the value that would have resulted from application of the amortised cost method.
The estimation procedure adopted in determining provisions for doubtful debts primarily reflects the identification and
measurement of elements resulting in specific reductions in the value of individually significant assets. Financial assets with
similar risk profiles are subsequently measured collectively, taking account, among other things, of the age of the receivable,
the nature of the counterparty, past experience of losses and collections on similar positions and information on the related
markets.
• Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and maturities that
the Group has a positive intention and ability to hold to maturity. These assets are carried at amortised cost using the
effective interest method, adjusted to reflect any impairment loss. The same policies as described in relation to loans
and receivables are applied if there is an impairment.
• Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial instruments that are either designated in this category or
not attributable to any of the other categories described above. These financial instruments are recognised at fair value
and any resulting fair value gains or losses are recognised in an Equity reserve. This reserve is only reclassified to profit
or loss when the financial asset is effectively disposed of (or extinguished) or, in the event of accumulated losses, when
there is evidence that the impairment recognised in Equity cannot be recovered. Solely in the case of debt securities, if
the fair value subsequently increases as the objective result of an event that took place after the impairment loss was
recognised in the income statement, the value of the financial instrument is reinstated and the reversal recognised in the
income statement. Moreover, the recognition of returns on debt securities under the amortised cost method takes place
through profit or loss, as do the effects of movements in exchange rates, whilst movements in exchange rates relating
to available-for-sale equity instruments are recognised in a specific Equity reserve. The classification of an asset as
current or non-current depends on the strategic choice regarding how long to hold the asset and its effective negotiability.
As a result, financial instruments expected to be realised within twelve months of the end of the reporting period are
classified as current assets.
Financial assets are derecognised when the Group no longer has the right to receive cash flows from the investment and
it has substantially transferred all the related risks and rewards and control.
Financial liabilities, including borrowings, trade payables and other payment obligations, are carried at amortised cost using
the effective interest method. If there is a change in the expected cash flows and they can be reliably estimated, the value
6. The amortised cost of a financial asset or liability means the amount recognised initially, less principal repayments and plus or minus accumulated
amortisation, using the effective interest method, of the difference between the initial amount and the maturity amount, after reductions for impairment
and insolvency. The effective interest rate is the rate that exactly discounts contractual (or expected) future cash payments or receipts over the expected
life of the asset or liability to its initial carrying amount. Calculation of amortised cost must also include external costs and income directly attributable to
the asset or liability on initial recognition.
of borrowings is recalculated to reflect the change on the basis of the present value of estimated future cash flows and
the internal rate of return initially applied. Financial liabilities are classified as current liabilities, unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.
Financial liabilities linked to investment contracts issued by the subsidiary, Poste Vita SpA, are accounted for at fair value
through profit or loss.
Financial liabilities are derecognised on settlement and when the Group has substantially transferred all the related risks
and rewards.
Derivative financial instruments
Derivatives are initially recognised at fair value on the date the derivative contract is executed and if they do not qualify for
hedge accounting. Gains and losses arising from changes in fair value after initial recognition are accounted for as finance
income or finance costs in the income statement for the period.
If, on the other hand, derivative financial instruments qualify for hedge accounting, gains and losses arising from changes
in fair value after initial recognition are accounted for in accordance with the specific policies described below.
The Group documents the relationship between each hedging instrument and the hedged item, as well as its risk
management objective, the strategy for undertaking the hedge transaction and the methods used to assess
effectiveness. Assessment of whether the hedging derivative is effective takes place both at inception of the hedge and
on an ongoing basis.
•
Fair value hedges
Both changes in the value of fair value hedges and changes in the value of the hedged item are recognised in profit or
loss when the hedge regards recognised assets or liabilities or an unrecognised firm commitment 7. When the hedging
transaction is not fully effective, resulting in differences between the above changes, the ineffective portion
represents a loss or gain recognised separately in other components of comprehensive income for the period.
•
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges8
after initial recognition are recognised in a specific Equity reserve (Cash flow hedge reserve). A hedging transaction is
generally considered highly effective if, both at inception of the hedge and on an ongoing basis, changes in the
expected future cash flows of the hedged item are substantially offset by changes in the fair value of the hedging
instrument. Amounts accumulated in Equity are reclassified to profit or loss in the periods when the hedged item will
affect profit or loss.
In the case of hedges associated with a highly probable forecast transaction (such as, the forward purchase of fixed
income debt securities), the reserve is reclassified to profit or loss in the period or in the periods in which the asset or
liability, subsequently accounted for and connected to the above transaction, will affect profit or loss (as, for example,
an adjustment to the return on the security).
If the hedging transaction is not fully effective, the gain or loss arising from a change in fair value relating to the
ineffective portion is recognised in profit or loss for the period.
If, during the life of the derivative, the forecast hedged transaction is no longer expected to occur, the related gains
and losses accumulated in the Cash flow hedge reserve are immediately taken to profit or loss for the period. On the
other hand, when a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge
accounting, the related gains and losses accumulated in the cash flow hedge reserve at that time remain in Equity and
are recognised in profit or loss at the same time as the original underlying transaction.
7. Fair value hedge: a hedge of the exposure to a change in fair value of a recognised asset or liability or of an unrecognised firm commitment attributable to
a particular risk, and that could have an impact profit or loss.
8. A hedge of the exposure to the variability of cash flows attributable to a particular risk associated with an asset or liability or with a highly probable forecast
transaction, and that could have an impact on profit or loss.
116
Estimating the fair value of financial instruments
The fair value of financial instruments traded in active markets is based on quoted market prices (bid prices) at the end
of the reporting period. The fair value of financial instruments that are not traded on an active market is based on prices
quoted by external dealers and on valuation techniques primarily based on objective financial variables, as well as by
taking account, where possible, of prices in recent transactions and quoted market prices for substantially similar
instruments.
Income tax expense
The charge for current income tax expense (both IRES, or corporation tax, and IRAP, or regional business tax) is based on
the best estimate of taxable profit for the period and the related regulations, applying the rates in force. Deferred tax assets
and liabilities are calculated on all temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts, using tax rates that are expected to apply when the related deferred tax assets are realised or the
deferred tax liabilities are settled. Deferred tax assets and liabilities are not recognised if the temporary differences derive
from investments in subsidiaries, where the timing of the reversal of the temporary difference is controlled by the Group
and it is probable that the temporary difference will not reverse in the foreseeable future.
Moreover, under IAS 12, deferred tax liabilities are not recognised on goodwill deriving from a business combination.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which
the temporary differences can be utilised.
Current and deferred taxes are recognised in the income statement, with the exception of taxes charged or credited
directly to Equity. In this case the tax effect is recognised directly in the specific item in Equity.
With regard to the recent changes to the law governing the calculation of direct taxation, should the treatment adopted by
the Company at the date of preparation of these consolidated financial statements not correspond to the tax authorities’
subsequent official interpretations of the Ministerial Decree of 1 April 2009, which implemented the 2008 Budget Law, it
may be necessary to apply reclassifications to current and deferred taxes.
Current and deferred tax assets and liabilities are offset when they are applied by the same tax authority to the same
taxpaying entity, which has the legally exercisable right to offset the amounts recognised, and when the entity intends to
exercise this right. As a result, even if accounted for in liabilities, tax liabilities accruing in interim periods that are shorter
than the tax year are not offset against the matching assets deriving from withholding tax or advances paid.
The Group’s tax expense and its accounting treatment reflect that effects deriving from the fact that Poste Italiane SpA
has adopted a tax consolidation arrangement, which it has elected to apply in accordance with the related law together
with the following subsidiaries: Europa Gestioni Immobiliari SpA, PosteMobile SpA, Poste Vita SpA and SDA Express
Courier SpA.
The tax consolidation arrangement is governed by Group regulations based on the principles of neutrality and equality of
treatment, which are intended to ensure that the companies included in the tax consolidation are in no way penalised as
a result. Consolidated tax expense is determined on the basis of the tax expense or tax losses for the period for each
company included in the consolidation, taking account of any withholding tax or advances paid.
Other taxes not related to income are included in Other operating costs.
Inventories
Inventories are valued at the lower of cost and net realisable value. The cost of fungible assets and goods for resale is
calculated using the weighted average cost formula. The above cost is adjusted, if necessary, by provisions for obsolete or
slow moving stock. When the circumstances that previously led to recognition of the above provisions no longer exist, or
when there is a clear indication of an increase in the net realisable value, the provisions are fully or partly reversed, so that
the new carrying amount is the lower of cost and net realisable value at the end of the reporting period.
In the case of non-fungible assets, such as properties held for sale, cost is represented by the fair value of each asset at
the date of acquisition, plus any directly attributable transaction costs, whilst the net realisable value is based on the
estimated sale price under normal market conditions, less direct costs to sell.
Long-term contract work is measured using the percentage of completion method, using cost to cost accounting 9.
Cash and cash equivalents refer to cash in hand, deposits held at call with banks, amounts that at 31 December 2009 the
Parent Company has temporarily deposited with the MEF and other highly liquid short-term investments with original
maturities of ninety days or less.
Current account overdrafts are accounted for in current liabilities.
This category refers to non-current assets or assets included in disposal groups where the carrying amount is to be
recovered primarily through a sale transaction rather than through continued use. Assets held for sale are accounted for at
the lower of the net carrying amount and fair value less costs to sell. When a depreciable asset is reclassified in this category,
the depreciation process is halted at the date of the reclassification.
Equity
Share capital
The Share capital is represented by the Parent Company’s subscribed and paid-up capital. Incremental costs directly
attributable to the issue of new shares are recognised as a reduction of the Share capital, net of any deferred tax effect.
Reserves
These regard capital or revenue reserves established for a specific purpose. They include, among others, the Parent
Company’s Legal reserve, the Fair value reserve, relating to items recognised at fair value through Equity, and the Cash
flow hedge reserve, deriving from recognition of the effective portion of hedging instruments outstanding at the end of the
reporting period.
9. This method is based on the ratio of costs incurred as of a given date divided by the estimated total project cost. The resulting percentage is then applied
to estimated total revenue, obtaining the value to be attributed to the contract work completed and accrued revenue at the given date.
118
Retained earnings
This item includes the portion of profit for the period and for previous periods that was neither distributed nor taken to
reserves or used to cover losses, and actuarial gains and losses deriving from the calculation of the liability for staff
termination benefits. This item also includes transfers from other equity reserves, when they have been released from the
restrictions to which they were subject.
Insurance contracts
Insurance contracts are classified and measured as insurance contracts or investment contracts, based on their prevalent
features. Contracts issued by the Group’s insurance company primarily regard life assurance. The company began
marketing accident and medical insurance during 2007.
The Group applies the following basis for classification and measurement of these contracts:
Insurance contracts
Insurance products include Branch I and V life assurance policies, in addition to index-linked policies that qualify as
insurance contracts. These products are accounted for as follows:
• earned premiums are recognised as income and classified in revenues; they include annual or single premiums accruing
during the period and deriving from insurance contracts outstanding at the end of the reporting period, less the value of
lapsed policies;
• technical provisions are made in respect of earned premiums to cover obligations to policyholders; the provisions are
calculated on an analytical basis for each contract using the prospective method, based on actuarial assumptions
appropriate to cover all outstanding obligations. Changes in technical provisions and the cost of claims are recognised as
expenses in a specific item in the income statement.
Contracts for separately managed accounts with discretionary participation features
Contracts for separately managed accounts with discretionary participation features10 are accounted for as follows:
• premiums, changes in technical provisions and the cost of claims are recognised in the same way as the insurance
contracts described above;
• portions of unrealised gains and losses attributable to policyholders are attributed to them and recognised in technical
provisions, under the shadow accounting method.
Investment contracts not linked to separately managed accounts
Investment contracts not linked to separately managed accounts, and which include a portion of index-linked contracts, are
accounted for under IAS 39, as follows:
• technical provisions are accounted for as financial liabilities and stated at fair value, whilst the related financial
instruments are accounted for in assets;
• premiums and changes in technical provisions are not recognised in income, with only revenue components, represented
by front-end loads and fees, and cost components, represented by commissions and other charges, recognised in the
income statement. In more detail, IAS 18 and 39 require that revenues and costs attributable to the contracts in question
be allocated over the contract term, based on the service supplied.
10. A contractual right of investors to receive returns on the assets under management.
Provisions for liabilities and charges represent provisions for liabilities or losses that are either likely or certain to be
incurred, but that are uncertain as to the amount or as to the date on which they will arise.
Provisions for liabilities and charges are made when the Group has a present (legal or constructive) obligation as a result
of a past event, and it is more likely than not that an outflow of resources will be required to settle the obligation. Provisions
are measured on the basis of management’s best estimate of the expenditure required to settle the obligation. The
discount rate used to determine the present value reflects current market assessments of the time value of money and
the risks specific to the type of liability concerned.
Liabilities that may only possibly give rise to an outflow of resources are reported in a specific section of the notes on
contingent assets and liabilities and no provisions are made.
Employee benefits
Post-employment benefits are of two types: defined contribution plans and defined benefit plans. Under defined
contribution plans the contributions paid by the Group are recognised in the income statement when incurred, based on
the related face value. Under defined benefit plans, given that the benefit to be paid can only be quantified after the
termination of employment, the related impact on the income statement and statement of financial position is recognised
on the basis of actuarial calculations, in accordance with IAS 19.
Post-employment benefits: defined benefit plans
Defined benefit plans, which include staff termination benefits payable to employees pursuant to article 2120 of the
Italian Civil Code, break down into two categories:
• For all companies with at least 50 employees, covered by the reform of supplementary pension provision, from 1
January 2007 vesting staff termination benefits must be paid into a supplementary pension fund or into a Treasury Fund
set up by INPS. A company’s liabilities deriving from defined benefit plans thus only regard provisions made up to 31
December 2006 11;
• in the case of companies with less than 50 employees, to which the reform of supplementary pension provision does
not apply, vested staff termination benefits continue to represent an accumulated liability for the company.
The liability represents the present value of the defined benefit obligation at the end of the reporting period, calculated
using the projected unit credit method to take account of the time that will pass before effective payment of the benefits.
Calculation of the liability recognised in the financial statements is carried out by independent actuaries.
The calculation takes account of vested termination benefits for the period of service to date and is based on actuarial
assumptions. These primarily regard the use of interest rates, reflecting market yields on government securities with
terms to maturity approximating to the terms of the related obligation, and staff turnover. In the case of companies with
at least 50 employees, given that the company is not liable for staff termination benefits accruing after 31 December
2006, the actuarial calculation of staff termination benefits no longer takes account of future rises in salary.
Actuarial gains and losses are recognised at the end of each reporting period, based on the difference between the
carrying amount of the liability and the present value of the Group’s obligations at the end of the period, due to changes
in the above actuarial assumptions. These gains and losses are recognised directly in Equity.
11. Where, following entry into effect of the new legislation, the employee has not exercised any option regarding the investment of vested staff termination
benefits, the Group has remained liable to pay the benefits until 30 June 2007, or until the date, between 1 January 2007 and 30 June 2007, on which
the employee exercised a specific option. Where no option was exercised, from 1 July 2007 vested staff termination benefits have been paid into a
supplementary pension fund.
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Termination benefits and incentive schemes: defined contribution plans
Termination benefits are recognised in liabilities when a Group company is demonstrably committed to terminating the
employment of an employee or group of employees before the normal retirement date, and to providing termination
benefits to the employee or group of employees as a result of an offer made to encourage voluntary redundancy. The
above benefits are recognised immediately in Staff costs as they are not capable of generating future economic
benefits for the Group.
Foreign currency translation
Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the dates
of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at closing exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in
the income statement.
Revenue recognition
Revenue is recognised at the fair value of the consideration received, net of rebates and discounts, and in accordance with
the accruals basis of accounting. Revenue from the rendering of services is recognised when it can be reliably measured
on the basis of the stage of completion of the transaction. Revenue from activities carried out in favour of or on behalf of
the state is recognised on the basis of the amount effectively accrued, with reference to the laws and agreements in force,
and in relation to amounts allocated in government budgets. Remuneration of deposits with the MEF of funds deriving from
current account deposits are recognised on a time proportion basis, using the effective interest method. This income is
classified in Revenues from ordinary activities. The same classification is applied to income from euro area government
securities, in which deposits paid into BancoPosta current accounts by private customers are invested.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been
transferred to the buyer.
Government grants
Government grants are recognised on a time proportion basis in direct correlation with the costs incurred, once they have
been formally allocated to the Group by the public entity concerned. Grants related to income are recognised in the income
statement as other operating income or as a direct adjustment of the cost item to which they refer.
Any grants related to assets, regarding property, plant and equipment, are accounted for as deferred income. Deferred
income is recognised in the income statement on a straight-line basis with reference to the useful life of the asset to which
the grant received is directly attributable.
Finance income and costs
Finance income and costs are recognised on a time-proportion basis, using the effective interest method.
Dividends
Dividends are recognised when the right to receive payment is established, which generally corresponds with approval of
the distribution by the General Meeting of shareholders of the investee company.
Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Parent Company by the
weighted average number of ordinary shares in issue during the year.
Diluted
At the date of preparation of these financial statements no financial instruments have been issued that might potentially
have dilutive effects12.
Related parties
Related parties within the Group refer to Poste Italiane SpA’s direct and indirect subsidiaries and associates. Related
parties external to the Group regard the parent, the MEF, the shareholder, Cassa Depositi e Prestiti SpA, entities
controlled by the MEF, and the Group’s key management personnel. The State and other public sector entities, other
than the MEF and the entities it controls, are not classified as related parties. Related party transactions do not include
those deriving from financial assets and liabilities represented by instruments traded on organised markets.
New accounting standards and interpretations applied from 1 January 2009
• Revised IAS 1 – Presentation of Financial Statements
On 17 December 2008 EC Regulation 1274 adopted the new version of IAS 1, on the basis of which all items of income
and expense recognised in a period must be included either in one statement (the statement of comprehensive income)
or in two statements (a separate income statement and a statement of comprehensive income). Gruppo Poste Italiane has
opted to present the results for the period by including all items of income and expense generated by non-owner
transactions in two statements: the separate income statement and the statement of comprehensive income.
• IFRS 8 – Operating segments that replaces IAS 14 – Segment Reporting
On 21 November 2007 EC Regulation 1358 adopted IFRS 8, which establishes new criteria for segment reporting. The
information supplied for each segment must reflect the method by which management uses balance sheet and income
statement elements to assess the segments’ performance and allocate resources to them.
As in previous years, information on operating segments is prepared on the basis of the Accounting Unbundling that Poste
Italiane SpA is required to carry out at the end of each reporting period in accordance with the law (Legislative Decree
261/99 and Legislative Decree 144/01). In addition, as part of the planned improvements to the accounting and
organisational unbundling process for BancoPosta, the methods used by management to assess the performance of Poste
Italiane SpA may be added to.
• IFRIC 13 – Customer Loyalty Programmes
On 16 December 2008 EC Regulation 1262 adopted IFRIC interpretation 13, which is applicable to entities that grant
award credits as part of a customer loyalty programme, with a view to providing customers with incentives to buy their
goods and services. The new interpretation requires entities to account for award credits as a separately identifiable
component of the sale transaction(s) in which they are granted. The effects deriving from application of the new
interpretation have thus been determined retrospectively, as required by IAS 8 – Accounting Policies, Changes in
Accounting Estimates and Errors, and the comparative information restated. Due to the fact that the value attributed
to the award credits determined on the basis of the new interpretation (based on fair value) is no different from the
provisions made by the Parent Company in previous years, application of IFRIC 13 has not resulted in adjustments to
12. Diluted earnings per share is calculated by taking into account of the dilutive effect of all the instruments potentially convertible into ordinary shares issued
by the Parent Company. The calculation is based on the ratio of profit attributable to the Parent Company, adjusted to take account of any costs or income
deriving from the conversion, net of any tax effect, and the weighted average number of shares outstanding, assuming conversion of all dilutive potential
ordinary shares.
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retained earnings. For comparative purposes, the effects of the new interpretation thus consist in a reclassification of
the following components of the statement of financial position and income statement:
GRUPPO POSTE ITALIANE FIGURES
Item
Provisions for liabilities and charges (current portion)
Carrying amount
Reclassification GranPremio Mondo BancoPosta
Restated amount
Carrying amount
Restated amount
Item
Revenues
Carrying amount
Reclassification of fair value of GranPremio Mondo BancoPosta points granted
Reclassification of fair value of GranPremio Mondo BancoPosta points redeemed
Restated amount
Carrying amount
Supply of GranPremio Mondo BancoPosta prizes
Restated amount
Carrying amount
Adjustment to provisions for GranPremio Mondo BancoPosta
Restated amount
31 Dec 2008
01/01/2008
829,180
(6,444)
822,736
523,813
(6,788)
517,025
1,596,875
6,444
1,603,319
1,590,440
6,788
1,597,228
2008
10,371,381
(1,933)
2,277
10,371,725
2,586,719
2,277
2,588,996
386,151
(1,933)
384,218
• Amendment to IFRS 7 – Financial Instruments: Disclosures
On 27 November 2009 EC Regulation 1165 adopted the Amended IFRS 7, which requires additional disclosures regarding
financial instruments recognised at fair value. Above all, the amended standard requires that financial instruments
recognised at fair value be classified with reference to a hierarchy of levels, based on the significance of the input used to
determine fair value. This classification is shown in note 3.14.
Other accounting standards and interpretations applicable from 1 January 2009
The following accounting standards, amendments and interpretations are applicable from 1 January 2009, but their
adoption has not resulted in any change to the presentation or measurement of items in Poste Italiane SpA’s financial
statements:
• Revised IAS 23 - Borrowing costs, adopted by EU Regulation 1260 of 10 December 2008;
• Amendment to IFRS 2 – Share-based Payment: Vesting Conditions and Cancellations, adopted by EU Regulation 1261 of
16 December 2008;
• Amendments to IAS 32 – Financial Instruments: Presentation and IAS 1 - Presentation of Financial Statements, adopted
by EU Regulation 53 of 21 January 2009;
• Amendments to IFRS 1 – First-time Adoption of International Financial Reporting Standards and IAS 27 – Consolidated
and Separate Financial Statements – cost of investments in subsidiaries, jointly controlled entities and associates,
adopted by EU Regulation 69 of 23 January 2009;
• Amendments to IFRS 4 – Insurance Contracts, adopted by EC Regulation 1165 of 27 November 2009;
• Amendments to IFRIC 9 – Reassessment of Embedded Derivatives and IAS 39 – Financial Instruments: Recognition and
Measurement, adopted by EC Regulation 1171 of 30 November 2009.
Finally, EU Regulation 70, published on 23 January 2009, has adopted various improvements to International Financial
Reporting Standards, most of which adopted from 1 January 2009, with the exception of certain amendments to IFRS 5 –
Non-current assets held for sale and discontinued operations, and amendments to IFRS 1 – First-time Adoption of
International Financial Reporting Standards, both applicable from 1 January 2010.
New accounting standards and interpretations not yet effective
The following accounting standards, amendments and interpretations are effective from 1 January 2010:
• IFRIC 12 – Service Concession Arrangements, adopted by EC Regulation 254 of 25 March 2009;
• IAS 27 – Consolidated and Separate Financial Statements, adopted by EC Regulation 494 of 3 June 2009;
• IFRS 3 – Business Combinations, adopted by EC Regulation 495 of 3 June 2009;
• IFRIC 16 – Hedges of a Net Investment in a Foreign Operation, adopted by EC Regulation 460 of 4 June 2009;
• IFRIC 15 – Agreements for the Construction of Real Estate, adopted by EC Regulation 636 of 22 July 2009;
• Amendment to IAS 39 – Exposures Qualifying for Hedge Accounting, and Change to IAS 39 – Financial Instruments:
Recognition and Measurement, adopted by EC Regulation 839 of 15 September 2009;
• IFRIC 17 – Distribution of Non-cash Assets to Owners, adopted by EC Regulation 1142 of 26 November 2009;
• IFRIC 18 – Transfers of Assets from Customers, adopted by EC Regulation 1164 of 27 November 2009.
The following amendments are effective from 1 January 2011:
• Amendments to IAS 32 – Financial Instruments: Presentation, adopted by EU Regulation 1293 of 23 December 2009.
At the date of approval of these consolidated financial statements, the IASB has issued the following accounting standards
and amendments, which have yet to be endorsed by the European Union:
• improvements to International Financial Reporting Standards, issued on 16 April 2009;
• changes to IFRS 2 - Share-based Payment, issued on 18 June 2009;
• changes to IFRS 1 - First-time Adoption of International Financial Reporting Standards, issued on 23 July 2009 and 29
January 2010;
• revised version of IAS 24 – Related Party Disclosures, issued on 4 November 2009.
Finally, the IFRIC has also issued the following interpretations, which have yet to be endorsed by the European Union:
• employee benefits (Amendment to IFRIC 14);
• hedges of financial liabilities (IFRIC 19).
The potential impact on Poste Italiane SpA’s financial reporting of the accounting standards, amendments and
interpretations due to come into effect is currently being examined and assessed.
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2.4 - USE OF ESTIMATES
Preparation of the consolidated financial statements requires management to apply accounting standards and methods that
are at times based on complex judgements and estimates, linked to historical experience, and assumptions that are
considered reasonable and realistic under the related circumstances. Use of these estimates and assumptions influences
the amounts reported in the financial statements, with reference to the statement of financial position, the separate
income statement, the statement of comprehensive income and the statement of cash flows, as well as the notes. The
actual amounts of items for which the above estimates and assumptions have been applied may diverge from those
reported in previous financial statements, due to uncertainties regarding assumptions and the conditions on which
estimates are based. The estimates and assumptions are periodically reviewed and the impact of any changes reflected in
the financial statements for the period in which the estimated is revised, if the revision only influences the current period,
or also in future periods if the revision influences the current and future periods.
This section provides a description of accounting treatments that, more than others, require the use of subjective
estimates and for which a change in the conditions underlying the assumptions used could have a material impact on the
Group’s consolidated financial statements.
Revenue and receivables due from the State
Revenue from activities carried out in favour of or on behalf of the State and Public Sector entities is recognised on the
basis of the amount effectively accrued, with reference to the laws and agreements in force, taking account, in any event,
of the instructions contained in legislation regarding the public finances.
Whilst awaiting renewal of agreements with INPS and the tax authorities, which expired in 2007, in 2009 Poste Italiane
SpA contained to provide the related delegated services as normal. In these cases, revenue recognition is based on the
tariffs established in the previous agreements and which it is reasonable to expect will be confirmed. These tariffs
represent the lowest potential tariff, estimated on the basis of the state of negotiations with the entity concerned.
At 31 December 2009, receivables due to the Parent Company from the MEF and the Cabinet Office amount to over 2
billion euros. This amount consists of:
• receivables of over 840 million euros in the form of Universal Service Obligation (USO) subsidies. Of this amount,
approximately 460 million euros refers to remaining amounts due for the years from 2006 to 2008, for which provision
has been made in the government’s budget. Completion of the process of formalising the addendum to the Contratto di
Programma (Planning Agreement) for 2006-2008, the draft of which was approved by the Interministerial Committee for
Economic Planning on 18 December 2008, will enable collection of all but 36 million euros. Collection of this amount will
be possible following formalisation of the Contratto di Programma (Planning Agreement) for the three-year period 20092011. This also applies to amounts due for 2009, totalling more than 370 million euros, including approximately 50 million
euros for which provision has not been made in the government’s budget. Finally, receivables of around 10 million euros
have been subject to cuts in public spending introduced by the 2007 and 2008 Budget Laws. Impairment losses have
been recognised on these receivables;
• receivables of over 800 million euros in the form of publisher tariff subsidies. Of this amount, over 440 million euros,
receivable for services rendered and regularly billed by Poste Italiane SpA in the years from 2007 to 2009, has not been
provided for in the Cabinet Office budget. Payment of the remaining subsidies for the years from 2001 to 2007,
amounting to approximately 360 million euros, is due in instalments in accordance with a specific Cabinet Office Decree
and collection is to take place on a straight-line basis between 2010 and 2016;
• further receivables of 360 million euros due from the MEF in relation to delegated services, payment of interest on the
Parent Company’s mandatory deposits with the Ministry and electoral subsidies. Of the latter item, provision has not
been made in the government’s budget for receivables totalling approximately 110 million euros.
Of the total amount receivable, with a face value of over 2 billion euros, the collection of approximately 716 million euros
will take place in instalments or has been suspended, whilst, in the case of approximately 610 million euros, either no
provision has been made or there is no legislation establishing the procedures for payment of Poste Italiane SpA. The
increase in these receivables over time means that Poste Italiane SpA has to finance growing amounts of working capital,
with a negative impact cash flow management and the related returns. Given that it is not currently possible to forecast
when and how the receivables will be paid by the various Public Sector entities, without prejudice to the Parent Company’s
full entitlement and related rights, provisions for doubtful debts due from the parent, the MEF, at 31 December 2009 reflect
the best estimate based on the circumstances and the financial impact of the above situation.
In the past, changes to the relevant legislation have been introduced after the end of the reporting period, resulting in
changes to estimates and influencing the income statement. The above circumstances mean that management cannot
exclude the possibility that, as a result of future legislation or the negotiations currently underway, the operating results for
the financial years after 2009 will reflect changes to the estimates in question.
Provisions
The Group makes provisions for potential liabilities deriving from disputes with staff, suppliers, third parties and, in general,
for liabilities deriving from present obligations.
Among other things, these provisions cover the liabilities that could result from legal action relating to the form of fixedterm contract applied by Poste Italiane SpA in previous years. In this regard, in March 2010 Parliament approved detailed
and wide-ranging employment legislation. One of the provisions introduces strict time limits for claims regarding specific
areas (dismissal, transfers and fixed-term contracts), whilst also imposing a cap on the compensation due to an employee
in the event of "court-imposed conversion" of a fixed-term contract. Once this legislation comes into force it should help in
establishing a clearer framework of reference in this complex area, which has significantly impacted the Group’s operations
and results in recent years. Implementation of the new legislation will be closely followed, partly in order to adjust the basis
for the estimation of the related potential liabilities to be recognised in the financial statements. Moreover, in the course
of this dispute, the plaintiffs have at times attempted to seize the Parent Company’s liquidity, and an estimate of the
liabilities linked to this factor is included in the calculation of the related provisions.
Determination of the provisions involves the use of estimates based on current knowledge of factors that may change over
time, potentially resulting in outcomes that may be significantly different from those taken into account when preparing
the consolidated financial statements.
Goodwill and measurement of assets that have indefinite useful lives
In measuring the value of these assets, the current economic and financial crisis, which has resulted in highly volatile
markets and great uncertainty with regard to economic projections, it is difficult to produce forecasts that can, without any
uncertainty, be defined as reliable.
Goodwill and Consolidation differences
Goodwill and Consolidation differences are tested annually to assess whether or not they have suffered any impairment
to be recognised in profit or loss. Above all, the test involves the allocation of goodwill to the various cash generating units
and the subsequent measurement of the related fair value. If the resulting fair value is lower than the carrying amount of
the cash generating unit, it is necessary to reduce the value of goodwill allocated to the unit. The allocation of goodwill to
cash generating units and the measurement of their fair value involves the use of estimates based on factors that may
change over time, with resulting effects, of a potentially significant nature, on the measurements performed.
The impairment tests required by the related accounting standards have been conducted. The tests carried out at 31
December 2009 were based on three-year plans, covering the period 2010-2012, for the relevant cash generating units
(Group companies or their subsidiaries). The figures for the last year of the plan were used to project cash flows for
subsequent years over an indefinite time horizon. The Discounted Cash Flow (DCF) method was then applied to the
resulting amounts. In calculating value in use, NOPLAT (Net operating profit less adjusted taxes) was capitalised using an
appropriate growth rate and discounted using the related WACC (Weighted average cost of capital). A growth rate of 2%
126
was used in the tests carried out at 31 December 2009. However, in view of the exceptional operating environment, which
makes it very difficult to make medium/long-term projections regarding macroeconomic and market conditions, the tests
also prudently took account of a possible deterioration in the parameters used in the preparing the long-term plans for
Group companies operating in the Postal Services segment. This involved making provisions accounted for in Other
provisions liabilities and charges. The suitability of the provisions made will be assessed on an ongoing basis.
Measurement of assets that have indefinite useful lives
Non-current assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. Testing for the above indicators requires the use of subjective judgements based on the information
available within the Group and in the market, and on historical experience. Moreover, when an impairment is recognised the
Group calculates the entity of the impairment using appropriate measurement techniques. The correct identification of events
or changes in circumstances indicating an impairment, and the estimates used in their calculation, are linked to factors that
may change over time, with a resulting impact on the measurements and estimates performed. The current economic and
financial crisis, which has resulted in highly volatile markets and great uncertainty with regard to economic projections, makes
it is difficult to produce forecasts that can, without any uncertainty, be defined as reliable.
At 31 December 2009 the fair value of the Parent Company’s operating properties was significantly higher than their
carrying amount. In determining the net carrying amount of operating Land and Buildings, the Company also took account
of any indications that these assets may be impaired. In this regard, and with particular reference to properties used as
post offices and Sorting Centres, Poste Italiane SpA’s Universal Service Obligation was taken into account. The process
thus took account of the inseparability of the cash flows generated by the large number of properties that provide this
service, which the Company is required to operate throughout the country regardless of the expected profitability of each
location. The unique nature of the operating processes involved and the substantial overlap between postal and financial
activities within the same outlets, represented by post offices, were also taken into consideration. On this basis, the value
in use of the Parent Company’s operating Land and Buildings is relatively unaffected by changes in the commercial value
of the properties concerned and, under particularly critical market conditions, certain properties may have values that are
significantly higher than their mere commercial value, without this having any negative impact on the Company’s cash
flows or overall earnings.
Depreciation and amortisation of property, plant and equipment and intangible
assets
The cost of these assets is depreciated or amortised on a straight-line basis over the estimated useful life of the asset. The
useful life is determined at the time of purchase and based on historical experience of similar investments, market
conditions and expectations regarding future events that may have an impact, including new technologies. The effective
useful life may, therefore, differ from the estimated useful life. The Group periodically assesses changes in technology and
in the industry, in dismantling costs and in the recoverable amount of assets in order to update their residual useful lives.
This periodic update may lead to changes in the depreciation or amortisation period and thus in charges for depreciation or
amortisation in the current and in future years.
In the case of assets located on land held under concession or sub-concession, on expiry of the concession term, or whilst
awaiting confirmation of renewal, any additional depreciation of assets to be handed over free of charge at the end of the
concession term is calculated on the basis of the probable residual duration of the right to use the assets to provide public
services, estimated on the basis of the framework agreements entered into with the Public Sector, the status of
negotiations with the grantors and past experience.
Deferred tax assets
Accounting for deferred tax assets is based on expectations of taxable income in future years. Assessments of expected
taxable income to be used in order to account for deferred taxes depend on factors that may change over time, with a
significant impact on the measurement of this statement of financial position item.
Provisions for doubtful debts
Provisions for doubtful debts reflect estimated losses on receivables, taking into account, in the case of specific items
receivable from Public Sector entities, of legislation restricting public spending. Provisions for expected losses reflect
the estimated credit risk associated with historical experience of similar receivables, an analysis of past due items (both
current and historical), losses and collections, and monitoring of the current and future economic conditions in the
related markets.
Fair value of unquoted financial instruments
The fair value of financial instruments that are not traded on an active market is based on prices quoted by external dealers,
or on internal valuation techniques that result in an estimate of what the transaction price would have been on the
measurement date in an arm’s length exchange motivated by normal business considerations. The Group uses valuation
models based primarily on financial variables taken from the market, taking account, where possible, of prices in recent
transactions and quoted market prices for substantially similar instruments, and of any related credit risk.
The measurement of technical provisions for the insurance business is based on the conclusions reached by internal
actuaries employed by Poste Vita SpA, which are regularly verified by independent external actuaries. Liability Adequacy
tests (LATs) are periodically conducted to verify the adequacy of the provisions. These tests measure the ability of future
cash flows from the insurance contracts to cover liabilities towards the policyholder. If necessary, technical provisions are
topped up and the related charge expensed in the income statement.
Calculation of staff termination benefits is carried out by independent actuaries. The calculation takes account of vested
termination benefits for the period of service to date and is based on actuarial assumptions of both a demographic and
economic and financial nature. These assumptions, which are based on the Group’s experience and relevant best practices,
are subject to periodic reviews.
3 - RISK MANAGEMENT
Definition and optimisation of Gruppo Poste Italiane’s financial structure, over both the short and medium/long term, and
management of the related cash flows is the responsibility of the Parent Company’s Finance department, acting in
accordance with the general guidelines established by governance bodies.
Management of the Group’s financial assets and liabilities and of the associated risks is primarily attributable to the
operations of the Parent Company and the insurance subsidiary, Poste Vita SpA.
Poste Italiane SpA
With regard to the Parent Company, financial transactions primarily regard BancoPosta’s operations as governed by
Presidential Decree 144/2001. In particular, these transactions regard management of the liquidity deposited in postal
current accounts, carried out under the Company’s own name but subject to restrictions on the investment of such liquidity
in compliance with the applicable legislation, and the management of collections and payments in the name and on behalf
of third parties, as well as the funding of assets and the investment of its own liquidity.
In compliance with the 2007 Budget Law, from that year Poste Italiane SpA has been required to invest the funds raised
as a result of postal current account deposits made by BancoPosta’s private customers in euro area government securities,
whilst the postal current account deposits of Public Sector customers have continued to be deposited with the MEF. In
128
2009 BancoPosta was engaged in reinvesting the funds deriving from maturing government securities. This was done by
taking account of the maturity profile of deposits, in accordance with an amortisation schedule approved by the Board of
Directors on the basis of a statistical/econometric model, developed by a leading consulting firm, that reflects the interest
rates and maturities typical of postal current accounts. This model is updated continually 13. This profile forms the basis of
the Company’s investment policy, given that certain gaps may emerge as a result of the need to reconcile risk exposure
with the need to earn returns linked to the market interest rate curve.
The Group’s own liquidity is managed in accordance with investment guidelines approved by the Board of Directors, which
require the Parent Company to invest in instruments such as government securities, high-quality corporate or bank bonds
and term bank deposits. Liquidity is also deposited in postal current accounts, with the resulting deposits subject to the
same requirements as apply to the investment of deposits by private current account holders (note 16.7).
Poste Vita SpA
The financial instruments held by the insurance company, Poste Vita SpA, primarily regard investments designed to
cover its contractual obligations to policyholders who have taken out classic with profit life policies and index-linked
and unit-linked policies. Other investments in financial instruments regard investment of the insurance Company’s free
capital.
Traditional life policies, classified under Branch I, include products whose benefits are revaluated in keeping with the
return generated through the management of separate pools of financial assets, which enjoy a certain autonomy,
though only in accounting terms, from the rest of the Company’s assets (so-called separate portfolio management).
On these products, the Company provides a minimum rate of return payable upon maturity of the policy. It follows that
the impact of financial risk on investment performance can be absorbed in full or in part by the insurance provisions.
In particular, this absorption depends on the level and structure of the minimum guaranteed returns and the profitsharing mechanisms of the “separate portfolio” for the policyholder. The Company determines the sustainability of
minimum returns through periodic analyses conducted with the aid of an internal financial-actuarial model which
simulates, for each separate portfolio, the change in value of the financial assets and the expected returns under a
“central scenario” (based on current financial and commercial assumptions) and under stress and other scenarios
based on different sets of assumptions.
Index- and unit-linked products, classified under Branch III, include policies where premiums collected are invested in
structured bonds or in mutual fund shares. For this type of product issued prior to the introduction of ISVAP Regulation
32 of 11 June 2009, the Company does not guarantee capital or a minimum return, and the associated financial risks are
thus borne entirely by the policyholder. For policies issued after introduction of the above regulation, however, the
Company only assumes liability for the risk of insolvency of the issuer of the securities in which the premiums are
invested. The Company monitors constantly changes in the risk profile of the individual products, with special emphasis
on the issuer’s solvency risk.
Financial risk management
Within this context, balanced financial management and monitoring of the main risk/return profiles is carried out by
organisational structures operating separately and independently. In addition, specific processes are in place governing the
assumption, management and control of financial risks, including via the progressive introduction of appropriate information
systems. From an organisational viewpoint, the model consists of:
13. In this regard, it is envisaged that in future the postal current account deposits of Public Sector customers will also have to be invested in euro area
government securities. This reflects the European Commission’s decision of 16 July 2008 relating to the level of interest rates paid to the Parent Company
(pursuant to art. 1, paragraph 31 of Law 266 of 23 December 2005, the 2006 Budget Law) on amounts held on deposit with the MEF.
• a Risk Measurement and Control function carried out by appropriate functions established within the Parent Company
and the subsidiaries that provide financial and insurance services (BancoPosta Fondi SGR SpA and Poste Vita SpA), and
that operates on the basis of the organisational separation of risk assessment from risk management activities. The
results of these activities are examined by the relevant advisory committees, which are responsible for carrying out an
integrated assessment of the main risk profiles. The outcomes of these assessments are then examined by a Financial
Risk Committee set up by the Parent Company.
The risk environment is defined on the basis of the framework established by IFRS 7, which distinguishes between four
main types of risk (a non-exhaustive classification):
• market risk;
• credit risk;
• liquidity risk;
• cash flow interest rate risk.
Market risk regards:
• price risk: this is the risk that the value of a financial instrument fluctuates as a result of market price movements,
including both movements deriving from factors specific to the individual instrument or the issuer, and factors that
influence all instruments traded on the market;
• foreign exchange risk: this is the risk that the value of a financial instrument fluctuates as a result of movements in
exchange rates for currencies other than the presentation currency;
• fair value interest rate risk: this is the risk that the value of a financial instrument fluctuates as a result of movements in
market interest rates.
In constructing the Risk Model adopted in order to monitor credit, liquidity and cash flow interest rate risks, the Group has
also taken account of the authoritative regulatory yardstick provided by the Bank of Italy’s prudential supervisory standards,
despite the fact that the Parent Company is not required to apply such standards.
MARKET RISK
Price risk
This type of risk regards financial assets that the Group has classified as “Held for trading” or “Available-for-sale”. The
following sensitivity analysis relates to the principal positions potentially exposed to fluctuations in value, excluding certain
minor items not traded on an active market. The amounts accounted for in the financial statements at 31 December 2008
and 31 December 2009 were subjected to a stress test, based on historical volatility during the years in question, which
was held to be representative of potential market movements.
The principal financial assets subject to price risk and the results of the analysis are shown in the following table.
130
3.1 - Market risk – Price
Date of reference of the analysis
2008 effects
Equity instruments
Other investments
at FV through profit or loss
Equity instruments
Structured bonds
Other investments
At FV through profit or loss
Position
1,284,495
36,711
1,247,784
10,621,695
9,976,781
644,914
-
Change in value
+Vol
-Vol
186,459
22,380
164,079
Effect on
liabilities towards
policyholders
+Vol
-Vol
Pre-tax profit
+Vol
-Vol
Equity reserves
+Vol
-Vol
(186,459)
(22,380)
(164,079)
164,415
1,044
163,371
(164,415)
(1,044)
(163,371)
-
-
1,115,705 (1,115,705)
1,074,064 (1,074,064)
41,641
(41,641)
1,110,770
1,069,176
41,594
(1,110,770)
(1,069,176)
(41,594)
4,935
4,888
47
(4,935)
(4,888)
(47)
-
-
-
-
-
-
-
-
1,275,185 (1,275,185)
4,935
(4,935)
22,044 (22,044)
16,150 (16,150)
15,563 (15,563)
587
(587)
-
-
Changes at 31 December 2008
11,906,190
2009 effects
Equity instruments
Other investments
1,648,523
65,274
1,583,249
102,720
17,217
85,503
(102,720)
(17,217)
(85,503)
86,570
1,654
84,916
(86,570)
(1,654)
(84,916)
-
-
Equity instruments
Structured bonds
Other investments
9,371,422
8,769,793
601,629
574,539
544,288
30,251
(574,539)
(544,288)
(30,251)
566,109
535,973
30,136
(566,109)
(535,973)
(30,136)
8,430
8,315
115
(8,430)
(8,315)
(115)
-
-
30,020
8,076
(8,076)
8,076
(8,076)
-
-
-
-
34,880
(4,860)
9,383
(1,307)
(9,383)
1,307
9,383
(1,307)
(9,383)
1,307
-
-
-
-
11,049,965
685,335
(685,335)
660,755
(660,755)
8,430
(8,430)
At FV through profit or loss
At FV through profit or loss (liabilities)
1,302,164 (1,302,164)
22,044 (22,044)
21,336 (21,336)
708
(708)
16,150 (16,150)
These assets refer primarily to equity instruments, reflecting investments made by the Parent Company, and the position
of Poste Vita SpA in Other investments, including mainly shares in equity funds.
Equity instruments include the Parent Company’s holdings of 350,628 Class B shares in MasterCard Incorporated (350,628
shares at 31 December 2008) with a fair value of 60,808 thousand euros, and 11,144 Class C shares in Visa Incorporated
(11,144 shares at 31 December 2008), totalling 662 thousand euros. A further 3,804 thousand euros regards equity
instruments in which Poste Vita SpA has invested separately managed Branch I accounts.
During the second half of 2009 150,000 Mastercard Incorporated shares were sold forward, with settlement on 30 April
2010. At 31 December 2009, therefore, the risk position regarding Mastercard shares was calculated with reference to
200,628 shares with a fair value of 34,794 thousand euros. Finally, during January and February 2010 further forward sales
of Mastercard shares were concluded (note 9.6). As a result, the volatility indicated in the table represents a prudential
measurement.
The Mastercard and VISA shares are not publicly traded in a regulated market but may be converted into an equal number
of Class A shares, which are listed on the New York Stock Exchange, when the periods provided for by both issuers’
articles of association expire. For the purposes of the sensitivity analysis, the shares held have been priced as the Class A
shares, minus an adequate discount, and their volatility associated with that shown by these shares on the NYSE.
Other investments consist of Poste Vita SpA’s investments in mutual funds, amounting to 1,579,979 thousand euros (1,245,146
thousand euros at 31 December 2008), to cover obligations to policyholders within the context of separately managed accounts
(Branch I). Other investments also include mutual fund shares held by the Parent Company, totalling 3,271 thousand euros
(2,638 thousand euros at 31 December 2008), as a result of the temporary investment of liquidity. As a result of the analysis,
any deterioration in the value of the instruments held by Poste Vita SpA does not have an impact on the minimum guaranteed
return paid to policyholders and, in accordance with the shadow accounting approach, are reflected in insurance liabilities.
Financial instruments at fair value through profit or loss
These instruments include investments by Poste Vita SpA (note 9.5), used nearly entirely to cover Branch III index- and
unit-linked policies, whose risks, subject to the provisions of the above ISVAP Regulation 32/2009, are borne by
policyholders. These include structured bonds and investments in equity funds. The residual effects on the income
statement shown in the above table were originated by marginal investments made by the Company with its free capital.
The asset balances regard warrants to cover obligations associated with the “Alba” product. The liability balances regard
forward purchases of warrants to cover obligations associated with the Branch III policies denominated “Terra” in the
process of being distributed at 31 December 2009 (note 9.6).
Foreign exchange risk
Sensitivity analysis of the items subject to foreign exchange risk was based on the most significant positions, assuming a
stress scenario determined by the levels of exchange rate volatility applicable to each foreign currency position held to be
material. It was decided to apply an exchange rate movement based on volatility during the year, which was held to be
representative of potential market movements. The results of the analysis are shown below.
Trade Receivables/Payables due from and to Overseas Correspondents
The most significant net position (approximately 98% of the reported foreign exchange exposure) is that denominated in
SDRs (Special Drawing Rights), a synthetic currency determined by the weighted average of the exchange rates of four
major currencies (Euro, US dollar, British pound, Japanese yen) used worldwide to settle commercial positions among
Postal Operators. At 31 December 2009 this position amounted to 2,182 thousand euros (4,111 thousand euros at 31
December 2008).
3.2 - Market risk – SDRs
2008 effects
Current assets in SDRs
Current liabilities in SDRs
Exposure to forex movements
at 31 December 2008
2009 effects
at 31 December 2009
Change in value
+Vol
-Vol
Pre-tax
profit
+Vol
-Vol
Equity
reserves
+Vol
-Vol
Position in
SDRs/000
Position in
€000
260 days
260 days
260 days
260 days
73,033
(69,318)
80,829
(76,718)
5,757
(5,464)
(5,757)
5,464
5,757
(5,464)
(5,757)
5,464
-
-
3,715
4,111
293
(293)
293
(293)
-
-
71,672
(73,677)
77,995
(80,177)
5,839
(6,002)
(5,839)
6,002
5,839
(6,002)
(5,839)
6,002
-
-
(2,005)
(2,182)
(163)
163
(163)
163
-
-
260 days 260 days
At 31 December 2009, the net position in US dollars amounts to 20 thousand euros (20 thousand euros at 31 December
2008), a negligible sum for the purposes of this analysis.
132
Financial assets
At 31 December 2009 this item primarily reflects equity instruments held by the Parent Company (note 3.1) and Posta Vita
SpA’s investments in bonds, both denominated in US dollars.
3.3 - Market risk – US dollar
Date of reference
of the analysis
Effect on
liabilities
towards
policyholders
+Vol
-Vol
Pre-tax profit
+Vol
-Vol
Equity
reserves
+Vol
-Vol
Position
in USD000
Position
in €000
260 days
260 days
260 days
260 days
260 days
260 days
48,242
47,884
358
34,664
34,407
257
-
-
-
-
4,915
4,915
-
(4,915)
(4,915)
-
2008 effects
Equity instruments
Fixed income instruments
Fixed income instruments1
738,822
530,877
(6,332)
6,332
-
-
-
-
738,822
530,877
(6,332)
6,332
-
-
-
-
at 31 December 2008
787,064
565,541
(6,332)
6,332
-
-
4,915
(4,915)
61,912
61,470
442
-
-
-
-
4,306
4,306
-
(4,306)
(4,306)
-
1,698
1,698
2
2
(2)
(2)
-
-
-
-
63,610
2
(2)
-
-
4,306
(4,306)
2009 effects
89,190
Equity instruments
88,553
637
2,446
2,446
Exposure to forex
movements at 31 December 2009 91,636
1. At 31 December 2008 the foreign currency position of 739,2 million US dollars hedged against exchange rate fluctuations through the use of derivatives
recognised at fair value through profit or loss. This hedge is the synthetic result of forward sales and purchases for 896,2 million US dollars and 95,3 million
US dollars, respectively, amounting to a net notional amount of 800,9 million US dollars. This resulted in a net exposure to exchange rate fluctuations of 61,7
million US dollars.
The 2009 effects on the value of the equity instruments held by the Parent Company (note 3.1) are only measured on the
basis of the portfolio that at 31 December 2009 was not subject to forward sales and whose fair value is 35,456 thousand
euros (51,078 thousand US dollars). The foreign exchange risk on the equity instruments sold forward has been hedged via
the forward sale of a corresponding amount in US dollars (note 9.6). The volatility indicated in the table represents, in any
event, a prudential measurement in view of the foreign exchange hedges on the forward sales of Mastercard shares
executed in January and February 2010.
At 31 December 2009 Poste Vita SpA’s position in fixed income instruments, related to its obligations associated with Branch
I policies, amounted to 3.1 million US dollars, of which 2.4 million US dollars are classified as financial instruments at fair
value through profit or loss. This position is almost entirely hedged against exchange rate fluctuations through forward sales
of 3.1 million US dollars, the fair value of which is recognised in profit or loss.
Fair value interest rate risk
Concerning the effects of changes in interest rates on the price of fixed income and fixed rate securities held by the Parent
Company, mainly in relation to Bancoposta’s activities, and by Poste Vita SpA, the following interest rate sensitivity analysis
was based on changes in fair value following a parallel shift in the forward yield curve (+/- 100 bps).
3.4 - Market risk – interest rate on fair value
Effect on liabilities
towards
policyholders
Equity
reserves
Pre-tax profit
Notional
Fair value
+100bps
-100bps
+100bps
-100bps
+100bps -100bps
2008 effects
Available-for-sale financial assets1
Derivative financial instruments2
13,588,950
12,630,200
13,044,233
12,993,663
-
-
-
-
(566,332) 602,610
(566,332) 602,610
958,750
50,570
-
-
-
-
-
Other investments
15,500,778
15,500,778
-
16,012,859
16,012,859
-
(658,568)
(658,568)
-
713,362
713,362
-
-
-
Financial instruments at FV through
profit or loss
93,992
93,992
84,589
84,589
(827)
(827)
857
857
-
-
-
Exposure to interest rate
movements at 31 December 2008
29,183,720
29,141,681
(659,395)
714,219
-
-
(588,766) 626,943
2009 effects
Available-for-sale financial assets3
14,670,700
14,092,700
578,000
15,108,809
15,067,840
40,969
-
-
-
-
(732,385) 794,709
(687,053) 745,103
(45,332) 49,606
Other investments
22,557,039
22,557,039
-
23,428,558
23,428,558
-
(1,149,630) 1,266,293
(1,149,630) 1,266,293
-
-
-
(17,699) 18,980
(17,699) 18,980
-
953,384
953,384
771,229
771,229
(48,792)
(48,792)
48,850
48,850
-
-
-
-
FV through profit or loss
FV through profit or loss (liabilities)
2,124,547
71,684
2,052,863
(7,547)
61
(7,608)
80,678
(1,508)
82,186
(80,678)
1,508
(82,186)
-
-
-
-
Exposure to interest rate
movements at 31 December 2009
40,305,670
39,301,049
(1,117,744) 1,234,465
-
-
(750,084) 813,689
-
(22,434) 24,333
(22,434) 24,333
-
1. At 31 December 2008 held-for-trading financial assets with a nominal value of 1,150,000 thousand euros (fair value through profit or loss) were not
considered, as these are not subject to the risk in question as they were hedged through forward sales with settlement in January 2009.
2. The forward purchases indicated were not subject to sensitivity analysis at 31 December 2008 as they were extinguished, following changes in market
conditions, in early 2009, recognising the discontinuation of the related cash flow hedges.
3. At 31 December 2009 held-for-trading financial assets with a nominal value of 100,000 thousand euros (fair value through profit or loss) were not
Bancoposta’s investment securities (note 16.3) were nearly equally split between Held-to-maturity (HTM) and Available-forsale (AFS). While a change in fair value does not have an impact in terms of financial position or operating performance for
HTM financial assets, which are initially recognised at fair value and subsequently are reported at amortised cost, it does
have an effect in terms of financial position for AFS financial assets, which are recognised at fair value with any change
accounted for in equity, making it necessary to monitor constantly the unrealised gains and losses. The sensitivity analysis
shown concerns AFS financial assets.
134
This item included fixed income government securities (ordinary BTPs) with a nominal value of 11,474,000 thousand euros,
and positions in inflation-linked BTPs (BTP€i) with a nominal value of 2,618,700 thousand euros. The BTP€i, which carry
floating rates indexed to European inflation, have been swapped for fixed rate bonds so as to hedge cash flows against
interest rate risk (cash flow hedges).
As a result of the re-investment of maturing securities, which saw the Company take advantage of the returns offered by
the peculiar nature of the interest rate curve, during 2009 the term to maturity of AFS investments rose by approximately
7 percentage points (at 31 December 2008 the term to maturity of the securities portfolio was 4.30). This has increased
the sensitivity of the fair value of the portfolio to interest rate risk, albeit to no significant extent.
At 31 December 2009, this form of interest rate risk also influenced the fair value of forward purchases of securities
attributable to BancoPosta and having a notional value of 578,000 thousand euros (note 16.4). These derivative financial
instruments were settled in early 2010 and the related sensitivity analysis, shown solely to ensure full disclosure, therefore
represents a prudential measurement.
The fixed income instruments considered in this analysis had a fair value of 23,316,578 thousand euros, compared with a
notional amount of 22,446,039 thousand euros (15,692,590 thousand euros and 15,189,278 thousand euros, respectively,
at 31 December 2008), and consist of Poste Vita SpA’s fixed income investments, totalling 22,906,129 thousand euros
(15,203,092 thousand euros at 31 December 2008), to cover its Branch I contractual obligations, and 410,449 thousand
euros (489,498 thousand euros at 31 December 2008) related to the company’s free capital.
This item included also investments by the Parent Company in short-term bank instruments with a notional value of
100,000 thousand euros (300,000 thousand euros at 31 December 2008).
The fixed income instruments considered total 771,229 thousand euros. These consist entirely of Poste Vita SpA’s
investments with a fair value of 727,241 thousand euros, relating to coupon stripped BTPs covering obligations associated
with the new Branch III “Alba” insurance product, and with a fair value 43,988 thousand euros (84,589 thousand euros at
31 December 2008), relating to securities covering Branch I contractual obligations.
These instruments relate entirely to forward purchases of BTPs by Poste Vita SpA. Instruments with a positive fair value
of 61 thousand euros regard securities covering Branch I contractual obligations. Instruments with a negative fair value of
7,608 thousand euros regard securities covering obligations associated with the new Branch III “Terra” insurance product
in the process of being distributed at 31 December 2009.
CREDIT RISK
Credit risk regards the risk that a debtor might default on a payment or go into liquidation. This risk is managed as follows:
• minimum rating requirements for issuers/counterparties, based on the type of instrument;
• concentration limits per issuer/counterparty;
• monitoring of changes in the ratings of counterparties.
At 31 December 2009 the following positions are subject to this risk:
Financial assets
Below, for each category of financial instrument the relevant credit exposure is shown. The ratings reported in the table
have been assigned by Moody’s.
3.5 - Credit risk - Financial assets
Balance at 31 Dec 2009
Item
Loans and receivables
Loans
Receivables
From Aaa
to Aa3
807,970
807,970
From A1 From Ba1 to
to Baa3
not rated
-
24,452,153 1,543,605
Credit instruments Posta Vita Branch I 23,760,089 1,529,822
Credit instruments Posta Vita Branch III
Credit instruments Posta Vita
free capital
Other instruments and deposits
470,677
221,387
13,783
-
4,482,814 5,302,331
Credit instruments Posta Vita Branch I
265,652 230,240
Credit instruments Posta Vita Branch III 4,200,901 5,045,061
Credit instruments Posta Vita free capital
16,261
27,030
Cash flow hedges
Fair value hedges
Fair value through profit or loss
Total
61
61
-
29,742,998 6,845,936
55,886
1,233
54,653
Total
From Aaa
to Aa3
863,856
1,233
862,623
960,304
960,304
124,696 26,120,454
122,695 25,412,606
1,000
1,001
485,460
222,388
250,780 10,035,925
40,299
536,191
177,382 9,423,344
33,099
76,390
35,029
17
35,012
35,090
17
35,073
466,391 37,055,325
From A1 From Ba1 to
to Baa3
not rated
52,286
52,286
15,277,831 2,756,638
14,244,271 2,735,488
516,336
517,224
12,121
9,029
9,672,788 1,475,866
947,881
218,641
8,689,766 1,245,688
35,141
11,537
13,213
1,116
12,097
-
25,924,136 4,284,790
15,083
1,237
13,846
Total
1,027,673
1,237
1,026,436
175,817 18,210,286
175,003 17,154,762
800
14
529,257
526,267
33,361 11,182,015
33,361 1,199,883
- 9,935,454
46,678
156
24
132
13,369
1,140
12,229
224,417 30,433,343
In 2009, the ongoing world financial crisis continued to entail a significant review of credit ratings by the main agencies,
with a substantial number of downgrades, even though the period witnessed a progressive reduction in credit spreads,
partly following the alignment of investors’ expectations with the fundamental indicators of the solvency of debtors. The
Group’s position was also affected by the changed picture, as its exposure features a lower average rating for its
counterparties than in the past, even though these counterparties continue to rank among the most creditworthy.
Receivables (note 9.2) primarily regard the Parent Company’s claims on the parent, the MEF, amounting to 769,500
thousand euros (905,548 thousand euros at 31 December 2008), and on the counterparties involved in asset swap
transactions (with collateral provided by a specific Credit Support Annex 14), totalling 55,660 thousand euros, in the form of
guarantee deposits established during the year under review (of these 38,470 thousand euros in favour of counterparties
with investment grade ratings).
This item also includes receivables of 23,482 thousand euros, representing advances made in relation to the subscription
of shares in private equity funds, where the investment has yet to be completed, and receivables of 9,677 thousand euros,
which were written down in 2008 by 8,777 thousand euros as due from a bank that had been declared bankrupt.
14. Under these contracts, counterparty risk is limited through periodic margining, whereby if the fair value of the derivative instrument exceeds a set value,
the debtor must post adequate collateral with the creditor. At 31 December 2009 almost all counterparties for the Group’s derivatives have investment
grade ratings. The sole exception is a counterparty that it is not rated by the agencies, for which a special purpose company in the same group with an
investment grade rating has posted collateral with Poste Italiane SpA in the event of default or insolvency.
136
Available-for-sale financial assets are described in note 9.3. In terms of credit risk, no account has been taken of equity
instruments or equity funds, whose risk exposure was discussed in the analysis of price risk.
Financial instruments at fair value through profit or loss are described in note 9.5. These included Poste Vita SpA’s
investments in structured bonds of 8,769,793 thousand euros (9,976,781 thousand euros at 31 December 2008), which
are subject to credit risk in connection with the crisis that characterized the financial markets. As these were financial
instruments designed to cover Branch III insurance policies, any impairment of elements classified under this item
translates into lower liabilities towards customers. However, reference should be made to the following section on Other
risks – Reputational risk. This item also includes 727,241 thousand euros in coupon stripped BTPs described in note 3.4
above.
Derivative instruments with a positive fair value are described in note 9.6 and amount to 34,941 thousand euros (13,369
thousand euros at 31 December 2008). Credit risk arising from derivative transactions is mitigated through rating and
counterparty concentration limits. Exposure is monitored at current value, in accordance with the Bank of Italy’s prudential
supervisory instructions.
The Parent Company’s operational characteristics, related in particular to BancoPosta’s investment activities, gave rise to
a significant exposure toward the Italian State, involving essentially deposits with the MEF and the majority of holdings of
Italian government securities (note 16.1).
Overall, the type of credit risk involved may be defined via the grouping together of the various positions based on the
quality of issuer or counterparty, as represented by the following ratings:
• Italian Republic: A+ for S&P and Aa2 for Moody’s;
• French Republic: AAA for S&P and Aaa for Moody’s;
• German Republic: AAA for S&P and Aaa for Moody’s.
The fair value of derivative financial instruments included in Assets attributable to BancoPosta amounts to 40,969 thousand
euros and reflects forward purchases. At 31 December 2009 all counterparties for the Group’s derivatives have investment
grade ratings.
Non-current assets - Other assets
3.6 - Credit risk
31 Dec 2009
31 Dec 2008
Carrying
amount
Specific
Impairment
Carrying
amount
Specific
Impairment
Trade receivables due from Public Sector entities
254,315
-
281,169
-
Trade receivables due from tax authorities
340,133
-
244,600
-
Receivables due under fixed-term contracts settlement
233,796
(2,189)
154,214
(2,189)
6,073
-
5,476
-
Item
Guarantee deposits paid to suppliers
Third-party deposits in Postal Savings Books
registered in the name of Poste Italiane SpA
3,101
-
3,248
-
1,326
-
234
-
Total
of which past due
838,744
-
688,941
-
Current assets - Trade Receivables
3.7 - Credit risk
31 Dec 2009
31 Dec 2008
Carrying
amount
Specific
impairments
Carrying
amount
Specific
impairments
Private customers
Due from parents
Public Sector
Cassa Depositi e Prestiti
Overseas postal operators
Due from subsidiaries, joint ventures and associates
Prepayments to suppliers
996,283
1,124,197
905,694
918,045
224,078
9,595
60
(40,936)
(77,230)
(96,765)
(20,556)
-
910,513
903,515
770,179
734,825
243,708
10,799
133
(41,027)
(54,019)
(96,044)
(20,556)
-
Total
of which past due
4,177,952
411,719
Item
3,573,672
541,492
The nature of the Group’s customers, the structure of revenues and the method of collection mean that there is a limited risk of
default on trade receivables. In this regard, reference should be made to the paragraph of note 2.4 dealing with Revenues and
receivables due from the State. All receivables are subject to specific monitoring and reporting procedures to support credit
collection activities.
3.8 - Credit risk
31 Dec 2009
Item
Carrying
amount
31 Dec 2008
Specific
impairments
Carrying
amount
Specific
impairments
Prepaid taxes
Receivables due from others
Other amounts due from subsidiaries
Accrued income and prepaid expenses
274,901
-
279,582
-
221,467
49
9,921
(128,408)
-
240,455
73
10,504
(108,397)
-
Total
of which past due
506,338
973
530,614
8,864
LIQUIDITY RISK
Liquidity risk is the risk that an entity may have difficulties in raising sufficient funds, at market conditions, to meet its
obligations deriving from financial instruments. Liquidity risk may regard the inability to sell financial assets quickly at an
amount close to fair value or by the need to raise funds at unfair rates.
Gruppo Poste Italiane applies a financial strategy that aims to minimise this type of risk as follows:
• diversification of the various forms of short- and long-term borrowings and counterparties;
• the availability of lines of credit in terms of amount and the number of banks;
• the gradual and consistent distribution of the maturities of medium/long-term borrowings;
• the adoption of analysis models designed to monitor the maturities of assets and liabilities.
138
At 31 December 2009 liquidity risk regards the potential exposure deriving from obligations relating to the investment of
deposits by current account customers and to the holders of Branch I insurance policies issued by Poste Vita SpA.
In terms of the Parent Company, the liquidity risk associated with BancoPosta’s activities regards the investment of current
account deposits in euro area government securities. The potential risk derives from a mismatch between the maturities
of investments in securities and those of liabilities, represented by current accounts where the funds are available on
demand, thus compromising the Company’s ability to meet its obligations to current account holders. This potential
mismatch between assets and liabilities is monitored via the use of a maturity schedule resulting from a statistical
approach, which has led to the creation of a model based on the performance of current account deposits according to an
amortisation schedule that assumes the total withdrawal of deposits equally distributed over a period of ten years.
Investment policies have been based on this model. This approach is also in line with the Bank of Italy’s prudential
supervisory requirements.
At 31 December 2009 the match between the maturities of investments in euro area government securities and the above
ten-year profile for the repayment of liabilities has, however, reduced, even if not to a significant extent. This reflects
investment activity, which, in order to take advantage of the returns offered by the peculiar nature of the interest rate curve
during the year, has involved the purchase of securities with longer terms to maturity (around 1% of the total notional
amount matures in 2023 and 2% in 2040). As a result, the average term to maturity of investments has risen from 4.28 at
31 December 2008 to 4.53 at 31 December 2009.
The components of the financial statements most subject to liquidity risk at 31 December 2009 are described below. The
amounts shown refer to the Group’s obligations at maturity (nominal value plus accrued interest).
In order to analyse liquidity risk at 31 December 2009, the timing of withdrawals from postal current accounts held by
third parties (with a carrying amount of 39,469,143 thousand euros) was determined as follows:
• in the case of private customers’ deposits, whose funds are invested in euro area government securities, on the basis
of the amortisation schedule deriving from application of the statistical model developed in order to model the behaviour
of current account holders;
• in the case of Public Sector customers, by taking account of the fact that the Parent Company is required to deposit the
resulting liquidity with the MEF, and that all changes in the amount due to current account holders is matched exactly in
the balance of the amount deposited with the Ministry after a delay of one bank working day (three working days until
30 June 2009). For this reason both items have been classified as being available on demand.
The following table shows liabilities increased by the expected cash flows generated by the related interest expense. Postal
current accounts are net of the postal current accounts held by Group companies.
3.9 - Liquidity risk
31 Dec 2009
Item
Within Between 1
12 months and 5 years
Over
5 years
31 Dec 2008
Total
Within Between 1
Over
5 years
Total
and the MEF for management
of postal savings
70,766
Other payables
222,796
547,709
Postal current accounts
13,953,567
68,108
10,737,423
70,766
290,904
547,709
13,194,061 37,885,051
572,456
528,137
913,486
13,474,953
572,456
52,341
580,478
913,486
10,453,649 12,764,945 36,693,547
Total liabilities
10,805,531 13,194,061 38,794,430
15,489,032
10,505,990 12,764,945 38,759,967
14,794,838
At 31 December 2009 these liabilities are invested in the following types of financial instrument. Investments in fixed
income instruments (a carrying amount of 28,458,973 thousand euros, as described in note 16.2) are shown on the basis
of the expected cash flows, consisting of the redemption value of the securities and the coupon interest to be collected
as it falls due.
31 Dec 2009
Item
Within Between 1
Amounts due from the MEF
31 Dec 2008
Over
5 years
Total
Within Between 1
Over
5 years
Total
8,320,632
-
-
8,320,632
6,336,538
-
-
6,336,538
Poste Italiane SpA’s own liquidity
held in postal current accounts
(1,515,829)
-
-
(1,515,829)
(790,180)
-
-
(790,180)
-
-
839,808
706,910
2,660,696
104,110
2,775,665
1,434,826
2,319,734
1,447,903
-
-
2,775,665
1,434,826
2,319,734
1,447,903
Amounts due from
the Italian Treasury
Other receivables
(Capital + Interest)
Total assets
839,808
706,910
2,660,696
104,110
3,289,121
14,220,634 17,136,087 34,645,842
3,279,431 13,631,728 15,239,390 32,150,549
14,405,448
14,220,634 17,136,087 45,762,169
16,803,917 13,631,728 15,239,390 45,675,035
The liquidity risk profile at 31 December 2009 is largely unchanged from the preceding year, featuring the same use
characteristics. Whilst demand deposits from Public Sector entities were substantially stable, demand deposits from
private customers are up, above all the retail component, which is typically more stable. Nevertheless, mindful that this
might be also a consequence of the financial crisis, the Parent Company continues to closely monitor the deposit base.
In order to analyse its liquidity risk profile, Poste Vita SpA uses Asset-liability management (ALM) to effectively manage
assets in relation to its obligations to policyholders, whilst also developing prospective analyses of the effects deriving from
financial market shocks (asset dynamics) and of the behaviour of policyholders (liability dynamics). At 31 December 2009
liabilities attributable to Branch I policies have an average term to maturity of 8.75 years, compared with an average term
to maturity of the matching assets of 4.19 years (approximately 6.5 and 3.9 years, respectively, at 31 December 2008). The
financial instruments intended to cover the technical provisions for Branch III have maturities that match those of the
liabilities.
Expected cash flows for financial liabilities accounted for at the end of the reporting period, broken down by maturity, are
shown below. Repayments of principal at face value are increased by interest payments calculated on the basis of the
interest rate curve applicable at 31 December 2009 and 31 December 2008.
3.11 - Financial liabilities
31 Dec 2009
Within
12 months
Between 1
and 5 years
Over
5 years
Financial liabilities at fair value
Borrowings
Current account balances
of subsidiaries
Other financial liabilities
300,408
1,792,604
1,690,799
1,715,405
3,342
1,351
2,083,241
Total
4,177,604
Item
31 Dec 2008
Total
Within
12 months
Between 1
and 5 years
Over
5 years
Total
12,298
-
1,690,799
2,028,111
1,795,946
718,736
8,001
2,816,018
1,891,536
6,452
131,341
297,357
2,816,018
2,741,613
311,810
20,070
250,466
1,351
2,353,777
824
1,979,554
80,916
191,364
824
2,251,834
3,429,616
262,764
7,869,984
2,707,115
4,794,922
620,062
8,122,099
140
At 31 December 2009 the main changes in the structure of the Group’s debt with respect to 31 December 2008 regard
repayment of the EIB loan of 400,000 thousand euros, maturing on 15 September 2009 (note 26.3), and redemptions of
1,291,815 thousand euros carried out by Poste Vita SpA following the conversion of a number of index-linked policies (note
26.1) described in the following section on Reputational risk.
Current liabilities – Trade payables
31 Dec 2009
31 Dec 2008
Within
12 months
Between 1
and 5 years
Over
5 years
Suppliers
Subsidiaries, joint ventures
and associates
Prepayments from customers
Interest payable
to current account holders
1,467,575
-
21,807
208,798
Total
Item
Total
Within
12 months
Between 1
and 5 years
Over
5 years
Total
-
1,467,575
1,513,683
-
-
1,513,683
-
-
21,807
208,798
23,193
206,684
-
-
23,193
206,684
91,720
-
-
91,720
111,953
-
-
111,953
1,789,900
-
-
1,789,900
1,855,513
-
-
1,855,513
CASH FLOW INTEREST RATE RISK
This regards uncertainty over future cash flows following fluctuations in market interest rates. It may be caused by a
mismatch – in terms of type of rate, indexation method and term to maturity – between financial assets and liabilities that
tends to last until contractual and/or expected maturity (the banking book), and which, as such, generates an impact on the
interest margin, which is thus reflected in the operating results for future periods.
At 31 December 2008 and 31 December 2009, sensitivity to interest rate risk of the cash flow generated by the
instruments concerned is summarized in the table below, and calculated to reflect changes resulting from a parallel shift
in the forward yield curve (+/- 100 bps).
3.13 - Cash flow interest rate risk and hedging policy
Date of reference
of the analysis
Nominal
position
Effect on liabilities
towards
policyholders
+100bps
-100bps
Pre-tax profit
+100bps
-100bps
Total
equity
Equity reserves
+100bps -100bps
+100bps -100bps
2008 effects
Financial assets
Fixed income (floating rate) securities
Other investments
3,813,937
107,500
36,488
-
(36,488)
-
1,651
1,075
(1,651)
(1,075)
-
-
1,651 (1,651)
1,075 (1,075)
Assets attributable to Bancoposta
Due from MEF
5,546,358
-
-
55,464
(55,464)
-
-
55,464 (55,464)
Bank and post office deposits
2,333,722
-
-
23,337
(23,337)
-
-
23,337 (23,337)
(650,000)
-
-
(3,550)
3,550
(13,731)
-
-
(137)
137
11,137,786
36,488
(36,488)
2009 effects
Non-current financial assets
Fixed income (floating rate) securities
Other investments
3,228,077
107,500
31,209
-
(31,209)
-
1,072
1,075
(1,072)
(1,075)
-
-
1,072 (1,072)
1,075 (1,075)
Due from MEF
6,804,803
-
-
68,048
(68,048)
-
-
68,048 (68,048)
2,025,790
-
-
20,258
(20,258)
-
-
20,258 (20,258)
(250,000)
-
-
(2,500)
2,500
-
-
(2,500)
2,500
(10,144)
-
-
(101)
101
-
-
(101)
101
Exposure to interest rate movements
at 31 December 2009
11,906,026
31,209
(31,209)
87,852 (87,852)
-
-
Bank borrowings (1)
Borrowings
(postal current account overdrafts)
1,468 (1,481)
-
-
(2,082)
2,069
(137)
137
at 31 December 2008
Bank borrowings
Borrowings
(postal current account overdrafts)
(1)
77,840 (77,840)
1,468 (1,481)
79,308 (79,321)
87,852 (87,852)
At 31 December 2008, the effects of the sensitivity analysis are shown net of the hedges in place. At this date, the Parent Company’s exposure to interest
rate risk in respect of its financial liabilities was hedged by interest rate swaps with a notional value of 295 million euros.
Financial assets – Fixed income instruments
Cash flow interest rate risk concerns investments in floating rate financial instruments that, at 31 December 2008 and 31
December 2009, were recognised as Available-for-Sale and at Fair Value through profit or loss.
Based on the analysis as of 31 December 2009, the effects of the risk in question on the cash flows related to the
investments of the Branch I policies sold by Posta Vita were not such as to affect the minimum guaranteed return to
policyholders and reflected entirely on the liabilities towards policyholders. In terms of consolidated income statement, the
effects of this risk were related to the investment of Poste Vita SpA’s free capital and the Parent Company’s cash.
The effects of the interest rate risk on the variable or indexed cash flows, designed to generate a return on the index- or
142
unit-linked Branch III policies issued until the entry into effect of ISVAP Regulation 32/2009, are not illustrated in the above
table. Considering the peculiar composition of such investments, consisting of structured bonds yielding returns linked
closely to bond and equity markets, a sensitivity analysis based solely on changes in interest rates might determine
unreliable or misleading results. In any case, any effect of changes in interest rates on cash flows is reflected in the
Liabilities towards policyholders (technical provisions and financial liabilities recognised at fair value). Sensitivity to changes
in interest rates thus generates a reputational risk that can affect the Company’s business, in connection with
policyholders’ expectations, as described in note 3.
At 31 December 2009 this risk primarily relates to the investment of the funds deriving from the current account deposits
of Public Sector entities, which must be deposited with the MEF. Since 1 January 2008, these investments earn interest
at a floating rate, calculated on the basis of a basket of government securities and indexes, in accordance with the method
provided for by the European Commission in its Decision of 16 July 2008 and set out in the related agreement between
the MEF and Poste Italiane SpA, which was approved by Ministerial Decree of 7 April 2009. Although the amounts involved
are lower, this risk also regards the liquidity deposited in a buffer account with the MEF, which earns interest in accordance
with the treasury services agreement renewed on 18 June 2009. This is calculated as the average yield on auctions of
Short-term Treasury Certificates (BOT) organised by the MEF during the relevant six-month period.
Non-current financial liabilities - Borrowings – Bank borrowings
These are described in note 26.3.
BANKING BOOK INTEREST RATE RISK
This is the risk, or the probability, that movements in interest rates will have a negative impact on an entity’s operating
results and financial position. It may be caused by a mismatch – in terms of type of rate, indexation method and term to
maturity – between financial assets and liabilities that tends to last until contractual and/or expected maturity (the banking
book), and which, as such, generates an impact on the interest margin, which is thus reflected in the operating results for
future periods.
At 31 December 2009 most of the risk in question is linked to the investment of the funds deriving from the postal current
account deposits of private customers in euro area government securities, as well as the liquidity held by Public Sector
entities in current accounts with the Parent Company, which must be deposited with the MEF. Returns on the investment
of these funds is related to general trends in interest rates, as the Parent Company takes a commercial approach to their
management, and interest paid on these deposits is not index-linked:
• investments in euro area government securities yield a return based on the interest rates prevailing at the time of
purchase; BancoPosta’s Securities portfolio is currently invested in fixed income instruments, or floating rate instruments
that yield fixed interest payments thanks to the asset swaps described above (note 3.4). For this reason, table 3.13 does
not show evidence of any potential impact on this portfolio of the risk in question;
• as noted elsewhere (note 3.13), the funds deposited with the MEF yield floating interest payments.
Both types of investment are associated with an interest rate risk profile that is analysed and monitored with respect to
the financial characteristics of the instruments and is managed through an adequate hedging policy (note 16.4). As a
result, at 31 December 2009 forward purchases with a notional value of 578,000 thousand euros, maturing in 2010, are
in place, in addition to asset swaps with a notional value of 2,618,700 thousand euros.
DETERMINATION OF FAIR VALUE
The financial instruments recognised at fair value in these financial statements are classified below on the basis of a
hierarchy reflecting the significance of the sources used in determining fair value. The fair value hierarchy comprises the
following levels:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
3.14 - Fair value hierarchy
Description
Level 1
31 Dec 2009
Level 2
Level 3
Total
Financial assets
23,179,222
13,007,314
2,262,564
38,449,100
AFS financial assets
23,001,867
3,804
22,994,792
3,271
3,127,837
61,470
2,975,366
91,001
1,646,752
7,479
59,294
1,579,979
27,776,456
72,753
26,029,452
1,674,251
177,355
177,355
-
9,844,519
1,074,726
8,769,793
-
615,680
14,051
601,629
10,637,554
1,266,132
8,769,793
601,629
-
34,958
132
35,090
15,171,861
40,969
-
15,212,830
Investments in financial instruments
AFS
15,171,861
15,067,840
-
15,171,861
104,021
-
-
15,067,840
104,021
-
40,969
-
40,969
38,351,083
13,048,283
2,262,564
53,661,930
-
(1,705,888)
(1,690,799)
(15,089)
-
(1,705,888)
(1,690,799)
(15,089)
-
(93,082)
(93,082)
-
(93,082)
(93,082)
Total liabilities at fair value
-
(1,798,970)
-
(1,798,970)
Equity instruments
Other investments
Structured bonds
Other investments
Held-for-trading
Total assets at fair value
144
3.15 - Changes in financial instruments at fair value (Level 3)
Description
Opening balance
Purchases/Issues
Sales/Extinguishment of initial accruals
Redemptions
Changes in fair value through profit or loss
Changes in fair value through Equity
Gains/Losses in profit or loss due to sales
Transfers to level 3
Transfers to other levels
Changes in amortised cost
Other changes (including accruals at the end of the period)
Closing balance
AFS
financial
instruments
Financial assets
Financial
instruments at
Derivative
fair value through
financial
profit or loss
instruments
Total
1,259,405
298,631
(1,786)
81,871
8,631
658,698
81,512
(149,549)
24,927
66
-
132
-
1,918,235
380,143
(151,335)
24,927
81,871
66
8,631
-
26
-
26
1,646,752
615,680
132
2,262,564
At 31 December 2009 available-for-sale financial assets, measured at Level 3 fair value, primarily consist of Poste Vita SpA’s
investments in mutual funds, totalling 1,579,979 thousand euros, to cover its obligations to policyholders in respect of
separately managed Branch I accounts (which increased during the year as a result of new purchases totalling 246.,377
thousand euros), and 52,294 thousand euros in new bonds in respect of Branch I policies. The remainder regards
investments in equity instruments, totalling 7,479 thousand euros (including 4,617 thousand euros belonging to the Parent
Company), and the recoverable amount of Poste Vita SpA’s investments in bonds, purchased to cover obligations associated
with Branch I policies, previously issued by a counterparty declared bankrupt in 2008.
The change in the fair value of the instruments in question, amounting to 81,871 thousand euros, is almost entirely reflected
in a matching increase in insurance liabilities, in accordance with the shadow accounting method.
At 31 December 2009 financial instruments at fair value through profit or loss, measured at Level 3 fair value, consist of
Poste Vita SpA’s investments in mutual funds, totalling 601,629 thousand euros, to cover obligations in respect of Branch III
unit-linked policies (note 9.5), with the remainder regarding bonds covering obligations associated with Branch I policies.
The change in the fair value of the financial instruments in question is almost entirely reflected in insurance liabilities towards
policyholders.
OTHER RISKS
Operational risk
This regards the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external
events. This category of risk includes losses resulting from fraud, human error, business disruption, systems failures,
breach of contract and natural disasters. Operational risks includes legal risk, but not strategic and reputational risks.
To protect the Group from this form of risk, in line with the prudential supervisory requirements, issued by the Bank of Italy
in December 2006, and adopted by Poste Italiane SpA as benchmarks, the Parent Company has formalised and agreed a
methodological and organisational framework to manage the operating risk related to the products/processes of the
BancoPosta unit and the asset management company BancoPosta Fondi SpA SGR.
During 2009 the Board of Directors approved the guidelines for managing the Group’s operational risk in relation to the
BancoPosta business, establishing policies and operational/organisational models for managing this type of risk. The
guidelines for the Parent Company and BancoPosta Fondi SpA SGR have been drawn up in line with this approved
framework.
The Operational Risk Management system used by Poste Vita SpA saw a number of important changes in 2009. Firstly,
the internal risk mapping system (the Risk and Control Matrix), which identifies and classifies all the company’s potential
risks, including operational risks, was radically overhauled. The changes introduced were the result of a thorough-going
review and mapping of business processes, with the aim of modelling the processes and drawing up an appropriate
classification system.
In addition to the Business Process Model, the Company redefined its internal risk classification system. In terms of
operational risk, this involved identifying elements of uncertainty that contribute to the occurrence of a damaging event
(effective and/or potential).
The Business Process Model and the internal risk classification system form two key elements of the model for operational
risk identification, given that they enable the Company to gather information in a structured and consistent fashion and
represent the starting point for all measurement methods.
The Company intends to complete its model for operational risk identification, by also developing an “internal events
model” that will enable it to identify and classify all potential types of operational loss event.
The models are designed to identify the degree of compliance with the various regulations in force more quickly and
effectively.
Based on the enlarged scope for analysis (processes and risks), Poste Vita SpA used the well-established qualitative
method to self-assess risks and control systems (the Risk and Control Matrix), attributing an order of priority to each type
of risk based on the “net residual risk” exposure. The results of the self-assessment process were thus analysed to identify
any risk mitigation initiatives, including actions designed to integrate/strengthen the internal control system.
Insurance risk
This type of risk arises with the stipulation of insurance contracts and the terms and conditions contained therein (technical
bases adopted, premium calculation, terms and conditions of cash surrender, etc.).
The risks to which Poste Vita is exposed primarily relate to separately managed accounts in the Branch I category sold by
the Company and, as is typical in the insurance business, deriving from the guaranteed minimum returns on investment to
be paid to policyholders, and the potential impact on the financial statements of the measurement of the assets in which
the technical provisions are invested.
Against this backdrop, Poste Vita has adopted a management approach based on the utmost prudence and designed to:
• increasingly correlate investments with the structure of its obligations to policyholders;
• maintain a portfolio capable of guaranteeing continuous returns;
• achieve a risk/return profile capable of always ensuring optimum technical equilibrium.
As a result, the investment policy, which also takes account of the guidelines approved by the Company’s Board of
Directors, focuses mainly on bonds (above all government securities and high-quality corporate bonds), with equities and
mutual investment funds accounting for a small proportion of the portfolio. Moreover, during the year foreign exchange risk
on foreign currency securities was hedged via forward currency trading.
Investments are continuously monitored by the Company, which also uses some of the most advanced risk analysis
methods (statistical matrix). The aim is to evaluate the compatibility of the estimated risks – calculated with regard to both
guaranteed minimum returns on investment to be paid to policyholders, and the potential impact on the financial
146
statements - with how far they are sustainable, based on the size of the statement of financial position and the returns
earned. The results of overall investment activities and the above risk analysis are described to and discussed by the
specially established Risk Committee.
In strictly technical terms, mortality is one of the main risk factors in life insurance, i.e. any risk associated with the
uncertainty of a policyholder’s life expectancy.
For products with the capital sum subject to positive risk, such as term life insurance, this risk has negative consequences
if death frequencies exceed the death probabilities realistically calculated (second order technical bases).
For products with the capital sum subject to negative risk, such as annuities, there are negative consequences when death
frequencies are lower than the death probabilities realistically calculated.
Nevertheless, at 31 December 2009 the mortality risk was limited for the Company and concerned mainly the repayment
of the premiums paid, in case of the death of holders of Branch III index- and unit-linked policies15, and the minimum
guaranteed capital in case of death, as required by the contracts for separate portfolio products.
As to pricing risk, i.e. the risk of incurring losses due to the inadequate premiums charged for the insurance products sold,
this may arise due to:
• inappropriate selection of the technical basis;
• incorrect assessment of the options embedded in the product;
• incorrect evaluation of the factors used to calculate the expense loads.
As Posta Vita’s mixed and whole-life policies have cash value build-up features, accumulating in accordance with a preestablished interest rate, the technical basis adopted does not affect premium calculation (and/or the insured capital). In
fact, there is no pricing risk associated with the choice of technical basis in Poste Vita’s portfolio.
The same considerations apply to Branch III, for which the investment risk is not borne by the Company.
The options embedded in the policies held in portfolio include:
• Surrender option;
• Minimum return guarantee option;
• Annuity conversion option.
For nearly all the products in the portfolio there are no surrender penalties. This might create problems in recovering
commissions in case of annual premiums, but these types of deferred premiums are not present in the portfolio, as there
are only single premiums or recurring single premiums. The surrender risk becomes significant in the event of mass
surrenders, which have a low probability of occurrence.
The minimum return guaranteed by contract is 1.5%16 per non-consolidated event 17, thus showing a very low risk
significance compared with the returns generated to date by the separate portfolios, as determined by the asset-liability
management analyses performed for the purposes of ISVAP Regulation 21 of 28 March 2008.
Reputational risk
The Group’s business is by its nature exposed to elements of reputational risk, associated mainly with the placement of
index-linked bonds issued by other credit institutions and/or insurance policies issued by Poste Vita SpA.
In this respect, in July 2008, in accordance with the Markets in Financial Instruments Directive by the EU (Directive
2004/39/EC, “MiFID”), the Parent Company adopted the “consulting service” model, which is currently being
implemented.
The crisis of 2008 had profound effects on the performance of all the financial instruments placed in the market, especially
those whose returns are magnified and are inevitably exposed to higher risk and volatility of their fair value.
15. In the event that the surrender value is lower than the premiums paid, the Company makes up for the difference up to 5,000 euros.
16. For a residual share of the portfolio, there is no guaranteed return.
17. In case of death, surrender and expiration.
Even though the Group has developed over time prudential policies in the customers’ best interests, which entails the
selection of domestic and foreign issuers solely with investment grade ratings, the situation prompted closer scrutiny, so
as to ensure full awareness of the performance of the products placed and the risks for the customers that, to this day,
characterize these products
In this regard, Poste Vita issued over the years Branch III index- and unit-linked policies that call for the investment of the
premiums paid in a structured bond or in mutual funds whose increase in value reflects on the value of the policies. For
this type of product issued prior to the introduction of ISVAP Regulation 32/2009, the Company does not guarantee capital
or a minimum return and, as such, the credit and financial risks associated with them are borne by the customer. In order
to protect its own good name and reputation, and those of its Group, as well as its credentials as a capable operator, the
company constantly monitors developments in the risk profile. Particular attention was given to monitoring certain financial
instruments underlying index-linked policies issued in the period 2001-2002 by Programma Dinamico SpA, a securitisation
vehicle set up under Law 130/99 that matches the definition of control established in the combined provisions of IAS 27
and SIC 12. These instruments bring together different financial positions, including securitisation transactions and credit
and financial derivatives (CDOs – Collateralised Debt Obligations), whose performances were affected by the financial and
credit market crisis. Whilst it is true that, in accordance with the legal nature of the products in question, the related
investment risk is transferred to policyholders, the Company assesses the need to restructure its portfolios in order to
safeguard its commercial interests, which could be prejudiced by widespread dissatisfaction among customers, and the
potential impact on its reputation as a result of a general expression of discontent.
I policies providing minimum returns guaranteed by the Company. This was done to allow policyholders to reduce their risk
exposure, in view of the changed scenario. The maturity of the contracts, which was originally set in 2012, was extended
to 31 December 2015 and the capital sum paid at such date was equal to 105% of the premium collected. The costs of
the conversion incurred through to 31 December 2009 have been accounted for in technical provisions. In addition, having
obtained the prior agreement of the regulator, in May 2009 the Company has sent the holders of “Programma Dinamico
Classe 3 A” policies, whose prices are above par at 31 December 2009, a letter in which it reminded policyholders that
they have the option of exercising their right of redemption early in order to exit an investment that, in the current financial
market crisis, is exposed to a particular degree of risk that was not foreseeable at the time of issue.
ISVAP Regulation 32, dated 11 June 2009, has introduced new rules governing index-linked policies. The Regulation
contains new rules for index-linked life assurance policies. In view of the number of defaults by major banks in 2008, the
insurance regulator believes it is necessary to take steps to protect policyholders, introducing certain standards aimed at
revisiting the part insurance companies play in creating products, taking on an active role in drawing up the proposed
indexation measures and in managing the investments necessary to hedge the risks assumed. In this regard, the
Regulation has, among other things, introduced a rule that states that the securities used to meet the obligations offered
may no longer represent the index underlying the policy, but only the company’s means of meeting its contractual
obligations. The standards introduced by the Regulation have thus made it easier for insurance companies to substitute
the assets in which they invest their technical provisions, on the basis of which the Company assumes the risk of
insolvency of the issuer. As a result, policyholders may no longer be exposed to the counterparty risk relating to third party
entities, whilst they will continue to be exposed to the risk linked to the negative performance of the external index, which
may, in any event, be fully or partly neutralised where the insurance company decides to offer further capital or minimum
return guarantees. In this context, Poste Vita SpA has modified the structure of products issued during the year to comply
with the new rules, which do not alter the rights and obligations attached to policies issued prior to the entry into effect of
the new Regulation.
148
OTHER INFORMATION
advantages in terms of improved liquidity and a reduction in the related risk. The system includes the five main subsidiaries,
and makes use, with regard to the banking channel, of zero balance cash pooling. In this way cash flows between the
current accounts of subsidiaries and the Parent Company are transferred on a daily basis.
The Group’s financial structure at 31 December 2009 is solid and balanced, and adequately protected from liquidity or
refinancing risks. Overall borrowings are primarily medium/long-term, except for bank overdrafts, which are of a limited
amount. Medium/long-term debt is sufficient to cover the Group’s expected financial needs.
At the end of the reporting period the Group has unused uncommitted lines of 1,218 million euros. The Group also has
overdraft facilities in place, totalling 95.4 million euros, of which 10.1 million euros has been temporarily used, and bank
guarantee facilities with a value of approximately 200.8 million euros (with 99.5 million euros available to the Parent
Company), of which guarantees with a value of 93.3 million euros have been used.
4 - OPERATING SEGMENTS
The identified operating segments are: Postal Services, Financial Services and Insurance Services. The “Postal Services”
segment includes Mail, Express Delivery, Logistics and Parcels, and Philately. The “Financial Services” segment includes
the collection of public deposits on behalf of Cassa Depositi e Prestiti and the management of postal current accounts and
related services, the payment of pensions under authority, the transfer of funds via postal order, collection services for third
parties. The “Insurance Services” segment regards the sale of life assurance products in Branches I, III and V. The
remaining “Other Services” segment includes segments which, based on the indications in IFRS 8 - Operating Segments,
are not significant within the context of the Group’s operations. This segment includes the remaining services carried out
by Poste Italiane SpA and those conducted by certain Group companies, including PosteMobile SpA, a mobile virtual
network operator, BancoPosta Fondi SpA SGR, an asset management company, EGI SpA, which operates in the property
sector.
Segment information regards revenue components and is prepared on the basis of the Accounting Unbundling that Poste
Italiane SpA is required to carry out at the end of each reporting period in accordance with the law (Legislative Decree
261/99 and Legislative Decree 144/01). The cost allocation method adopted is based on the absorption of resources (staff,
external costs, plant, etc.) by the various business segments.
The result for each segment is based on Operating profit/(loss). All income components reported for operating segments
are measured using the same accounting policies applied in the preparation of these interim financial statements.
(€m)
Postal
Services
Financial
Services
Market revenues
Inter-segment revenue
Total revenue
5,227
278
5,505
4,964
8
4,972
9,376
0
9,376
531
138
669
-
(424)
(424)
20,098
20,098
Other non-cash expenses
Total non-cash expenses
(488)
(278)
(766)
(0)
(118)
(118)
(0)
(6,934)
(6,934)
(67)
(34)
(101)
-
-
(555)
(7,364)
(7,919)
Finance income/(Costs)
Profit/(Loss) on investments accounted
Income tax expense for the year
(208)
-
1,422
-
272
-
107
-
(5)
6 (*)
(6) (*)
1,599
(11)
1
-
0
0
(685)
-
1
(685)
904
Assets
Liabilities
6,858
5,350
42,763
41,059
37,533
37,709
853
190
5,144
4,959
(2,209)
(2,900)
90,942
86,367
450
0
0
58
-
-
508
3
-
8
4
-
-
15
2009
Other information
Capital expenditure
Investments accounted for using
the equity method
(*)
Insurance
Other
Services Services
Unallocated Adjustments and
items
eliminations
Total
150
(€m)
Postal
Services
Financial
Services
Market revenues
Inter-segment revenue
Total revenue
5,506
279
5,785
4,595
7
4,602
7,268
7,268
484
135
619
-
(420)
(420)
17,853
0
17,853
Other non-cash expenses
Total non-cash expenses
(489)
(462)
(950)
(0)
(162)
(162)
(1)
(3,282)
(3,283)
(50)
(5)
(55)
-
-
(540)
(3,911)
(4,451)
(57)
-
1,153
-
232
-
132
-
60
10 (*)
(10) (*)
1,470
50
0
-
0
0
(637)
-
6,328
5,153
41,295
40,843
31,179
31,291
886
191
5,263
5,340
(1,436)
(2,725)
0
(637)
883
83,515
80,093
653
0
1
59
-
-
713
2
-
2
3
-
-
7
2008
Finance income/(Costs)
Profit/(Loss) on investments accounted
for usingthe equity method
Income tax expense for the year
Assets
Liabilities
Other information
Capital expenditure
Investments accounted for using
the equity method
(*)
Insurance
Other
Services Services
Unallocated Adjustments and
items
eliminations
Total
Assets are those employed by the segment in conducting its ordinary activities or that may be allocated to the segment
based on these activities.
Unallocated assets consist of cash of 2,039 million euros (1,887 million euros at 31 December 2008), non-current financial
assets of 1,389 million euros (1,495 million euros at 31 December 2008), deferred tax assets of 645 million euros (641
million euros at 31 December 2008), prepaid taxes of 615 million euros (524 million euros at 31 December 2008), current
financial assets of 406 million euros (673 million euros at 31 December 2008), and current tax assets of 50 million euros
(43 million euros at 31 December 2008). Financial assets and cash relating to the insurance activities of Poste Vita SpA are
allocated to the “Insurance Services” segment.
Unallocated liabilities consist of current financial liabilities of 2,333 million euros (2,626 million euros at 31 December 2008),
non-current financial liabilities of 1,846 million euros (2,062 million euros at 31 December 2008), deferred tax liabilities of
417 million euros (310 million euros at 31 December 2008), current taxes payable of 283 million euros (268 million euros
at 31 December 2008) and current tax liabilities of 80 million euros (74 million euros at 31 December 2008). Current and
non-current financial liabilities are accounted for after deducting Poste Vita SpA’s financial liabilities allocated to the
“Insurance Services” segment.
Information about geographical segments, based on the geographical areas in which the various Group companies are
based, is not material. At 31 December 2009 all entities consolidated on a line-by-line basis are based in Italy, whilst their
customers are also primarily located in Italy and revenue from overseas customers does not account for a significant
proportion of total revenue.
5 - PROPERTY, PLANT AND EQUIPMENT
The following table shows changes in property, plant and equipment in 2008 and 2009:
5.1 - Changes in property, plant and equipment
Land
Cost
Accumulated depreciation
Accumulated impairments
Carrying amount
Changes during the year
Purchases
Adjustments
Reclassifications
Disposals
Depreciation
Impairments
Total changes
75,909
75,909
408
721
(50)
(468)
611
Cost
Carrying amount
76,520
76,520
Purchases
Adjustments (1)
Reclassifications (2)
Disposals (3)
Depreciation
Impairments
Total changes
608
495
(2,773)
(345)
(2,015)
Cost
Carrying amount
74,505
74,505
Operating
properties
Industrial
and
Plant and commercial
Leasehold
equipment equipment improvements
2,592,013 2,214,247
(795,002) (1,489,284)
(7,496)
(29,654)
1,789,515
695,309
Assets in the
course of
construction and
Other
prepayments
Total
260,373
(191,532)
(770)
68,071
471,468
(369,182)
102,286
1,073,134
(853,272)
(51)
219,811
194,421
(2,913)
191,508
6,881,565
(3,698,272)
(40,884)
3,142,409
128,831
15,285
(2,300)
(88)
(152,997)
(636)
(11,905)
17,118
(4)
(31)
(17)
(27)
(20,973)
(3,934)
27,842
14,265
(230)
(25,527)
(34)
16,316
63,734
(1)
34,088
(343)
(349)
(85,189)
11,940
218,236
(25)
(82,793)
(49)
(35)
135,334
485,382
691
(5,934)
(8,002)
(647)
(376,907)
(671)
93,912
2,617,351 2,302,340
(880,804) (1,588,238)
(1,482)
(30,698)
1,735,065
683,404
277,355
(212,448)
(770)
64,137
481,907
(363,304)
(1)
118,602
1,163,092
(931,291)
(48)
231,753
326,842
326,842
7,245,407
(3,976,085)
(32,999)
3,236,323
96,705
58,357
(1,070)
(154,790)
(705)
(1,503)
12,645
2,125
(2)
(17,649)
(2,881)
18,054
41,530
(466)
(20,343)
(750)
38,025
42,217
47,944
(571)
(90,554)
(964)
69,018
(30)
(205,466)
(136,478)
288,896
528
348
(10,643)
(377,505)
(14,005)
(112,381)
2,715,167 2,137,771
(972,686) (1,442,842)
(13,981)
(13,028)
1,728,500
681,901
292,212
(230,186)
(770)
61,256
218,649 1,246,954
(62,017) (1,016,117)
(5)
(48)
156,627
230,789
190,364
190,364
6,875,622
(3,723,848)
(27,832)
3,123,942
29,213
13,302
(4,595)
(148)
(92,221)
(1)
(54,450)
49,649
63
58,631
(8,189)
(94,169)
(12,550)
(6,565)
Adjustments (1)
Cost
Other liabilities
Total
495
495
98
(35)
63
-
-
-
-
(30)
(30)
593
(30)
(35)
528
Cost
Total
(2,773)
(2,773)
58,603
28
58,631
52,091
6,266
58,357
2,214
(89)
2,125
41,615
(85)
41,530
47,952
(8)
47,944
(205,466)
(205,466)
(5,764)
6,112
348
Disposals (3)
Cost
Total
(345)
(345)
(10,534)
2,294
51
(8,189)
(313,365)
293,920
18,375
(1,070)
(2)
(2)
(322,927)
321,715
746
(466)
(6,307)
5,736
(571)
-
(653,480)
623,665
19,172
(10,643)
152
At 31 December 2009 Property, plant and equipment includes assets belonging to the Parent Company located on land
held under concession or sub-concession, which is to be handed over free of charge at the end of the concession term,
with a carrying amount of 179,850 thousand euros.
The principal changes during 2009 are described below.
Capital expenditure of 288,896 thousand euros, including 4,210 thousand euros in capitalised costs and expenses, primarily
regard:
• 49,649 thousand euros relating primarily to the purchase and maintenance of properties owned by the Group, including
31,398 thousand euros relating to the extraordinary maintenance of post offices, local head offices and mail sorting
offices, and 18,074 thousand euros regarding the purchase of premises used as post offices;
• 96,705 thousand euros relating to plant, with the most significant items regarding the Parent Company and relating to
the installation of ATM machines (31,770 thousand euros), the purchase of sorting equipment used at Sorting Centres
(28,956 thousand euros), and plant used in buildings (19,976 thousand euros). The total also includes capital expenditure
carried out by the Postel Group, totalling 1,459 thousand euros and primarily relating to printing and enveloping systems;
• 12,645 thousand euros primarily relating to the purchase of security equipment for post office access and for the deposit
of cash and sundry documents;
• 18,054 thousand euros invested almost entirely by the Parent Company in plant (9,580 thousand euros) and structural
improvements (8,292 thousand euros) for properties held under lease;
• 42,217 thousand euros regarding Other assets and primarily relating to the Parent Company. This includes 13,056
thousand euros for the purchase of new computer hardware for post offices and head offices and the expansion of
storage systems, 11,065 thousand euros for the purchase of furniture and fittings in connection with the new layouts for
post offices, and 7,104 thousand euros for the purchase of other durable goods used in delivery activities;
• 69,018 thousand euros, primarily referring to the Parent Company’s investments in progress, with 29,749 thousand euros
relating to the restyling of post offices, 24,997 thousand euros to the restructuring of Sorting Centres, and 6,324
thousand euros for the purchase of computer hardware yet to enter service. The total also includes 7,149 thousand euros
invested by Postel SpA and regarding the purchase of latest-generation printing and enveloping equipment that has yet
to enter service and the restructuring of storage facilities.
Impairments of 14,005 thousand euros, relating entirely to the Parent Company, primarily regard:
• 9,550 thousand euros for the impairment of assets damaged by the earthquake that hit the Abruzzo region in April 2009.
Damage to the Poste Italiane Group’s real estate and other assets is still being appraised and is almost entirely covered
by appropriate insurance policies. The likely payout, which is in the course of being quantified, will be accounted for in
income as soon as it is due for payment;
• 2,429 thousand euros relating to assets located on land held under concession or sub-concession, for which, on expiry
of the concession term, or whilst awaiting confirmation of renewal, any additional depreciation of assets to be handed
over free of charge at the end of the concession term is calculated on the basis of the probable residual duration of the
right to use the assets to provide public services, estimated on the basis of the framework agreements entered into with
the Public Sector, the status of negotiations with the grantors and past experience.
Reclassifications from Assets in the course of construction, totalling 205,466 thousand euros, primarily regard the purchase
cost of assets that became available and ready for use during the year. Above all, such assets regard completion of work
on the restructuring of Sorting Centres and installation of the related equipment, completion of the restructuring of Groupowned and leased post offices premises, and the rollout of hardware held in storage.
Disposals, with a net carrying amount of 10,643 thousand euros, primarily regard the sale of operating properties (8,189
thousand euros) and the disposal of obsolete production plant (1,070 thousand euros). The impact of these disposals on
the income statement is described in note 33.2.
The following table shows a breakdown by category of property, plant and equipment held under finance leases at 31
December 2009 and 2008:
5.2 - Assets held under finance leases
31 Dec 2009
31 Dec 2008
Cost
Accumulated
depreciation
Net carrying
amount
Buildings held under finance leases
17,043
(3,834)
Plant and equipment
held under finance leases
65,087
Item
Other assets (hardware)
Total
Cost
Accumulated
depreciation
Net carrying
amount
13,209
17,043
(3,323)
13,720
(61,859)
3,228
71,429
(64,667)
6,762
6,824
(2,224)
4,600
6,824
(1,303)
5,521
88,954
(67,917)
21,037
95,296
(69,293)
26,003
The following table provides further information about the Group’s finance leases at 31 December 2009:
5.3 - Reconciliation of total future lease payments and present value
31 Dec 2009
Item
Payments from 01.01.2010
to end of lease term
Interest
Present value
Buildings
15,203
3,051
12,152
Plant and equipment
3,499
72
3,427
4,572
346
4,226
23,274
3,469
19,805
Total
5.4 - Financial liabilities by maturity
31 Dec 2009
Item
Buildings
within 12 months
between 1 and 5 years
over 5 years
Total
778
3,553
7,821
12,152
Plant and equipment
2,769
658
-
3,427
2,060
2,166
-
4,226
Total
5,607
6,377
7,821
19,805
154
6 - INVESTMENT PROPERTY
Investment property primarily regards properties owned by the subsidiary, EGI SpA, residential accommodation previously
used by post office managers and former service accommodation owned by Poste Italiane SpA pursuant to Law 560 of 24
December 1993. The following changes in investment property took place in 2009 and 2008:
6.1 - Changes in investment property
Balance at 1 January
Cost
Carrying amount
Purchases
2009
2008
238,645
(57,484)
(8,736)
172,425
272,342
(59,367)
(19,163)
193,812
607
862
Disposals (2)
Depreciation
Reversals of impairments/(Impairments)
Total changes
(625)
(11,838)
(8,710)
1,817
(18,749)
777
(19,907)
(9,211)
6,092
(21,387)
Balance at 31 December
Cost
Carrying amount
215,714
(56,918)
(5,120)
153,676
238,645
(57,484)
(8,736)
172,425
Cost
Total
(1,743)
653
465
(625)
(1,403)
1,021
1,159
777
Disposals (2)
Cost
Total
(21,795)
8,623
1,334
(11,838)
(33,156)
10,073
3,176
(19,907)
The fair value of Investment property at 31 December 2009 amounts to 315 million euros. This value includes approximately
212 million euros representing the market prices of the investment property, based primarily on independent valuations, and
103 million euros representing the sale price applicable to the Parent Company’s former service accommodation pursuant to
Law 560 of 24 December 1993.
Most of the properties included in this category are subject to lease agreements classifiable as operating leases, given that
the Group retains substantially all the risks and rewards of ownership of the properties. Under the relevant agreements,
tenants usually have the right to break off the lease with six months notice. Given the resulting lack of certainty, the expected
revenue flows from these leases are not referred to in these notes.
7 - INTANGIBLE ASSETS
The following table shows changes in intangible assets in 2008 and 2009:
7.1 - Changes in intangible assets
Industrial patents, Intellectual
property rights,
concessions,
licences, trademarks
and similar rights
Intangible
assets in
progress and
prepayments
Goodwill
Consolidation
differences
Cost
Accumulated amortisation
Carrying amount
879,034
(630,674)
(1,377)
246,983
34,342
(99)
34,243
29,725
29,725
69,284
69,284
Purchases
Adjustments
Reclassifications
Disposals
Amortisation
Impairments
Total changes
137,296
(54)
32,921
(33)
(153,519)
16,611
79,240
(38)
(33,068)
(9)
46,125
7,094
7,094
(1,212)
(1,212)
Cost
Carrying amount
1,048,245
(783,295)
(1,356)
263,594
80,467
(99)
80,368
36,819
36,819
Purchases
Adjustments (1)
Disposals (3)
Amortisation
Impairments
Total changes
139,285
57,615
(4)
(152,633)
44,263
73,698
(101)
(59,189)
14,408
(950)
(950)
Cost
Carrying amount
1,244,954
(935,741)
(1,356)
307,857
94,875
(99)
94,776
36,819
(950)
35,869
Adjustments (1)
Cost
Accumulated amortization
Total
-
(101)
(101)
-
-
-
(101)
(101)
Cost
Total
57,429
186
57,615
(59,189)
(59,189)
-
-
1,371
(12)
1,359
(389)
174
(215)
Disposals (3)
Cost
Total
(5)
1
(4)
-
-
-
-
(5)
1
(4)
Other
Total
110,795 1,123,180
(99,379) (730,053)
(6,690)
(8,166)
4,726
384,961
2,779
1,847
3
(5,246)
(617)
226,409
(92)
1,700
(9)
(30)
(158,765)
(1,212)
68,001
69,284 113,815 1,348,630
- (103,016) (886,311)
(1,212)
(6,690)
(9,357)
68,072
4,109
452,962
-
5,197
1,359
(3,689)
2,867
218,180
(101)
(215)
(4)
(156,322)
(950)
60,588
69,284 120,383 1,566,315
- (106,717) (1,042,458)
(1,212)
(6,690)
(10,307)
68,072
6,976
513,550
156
Investment in intangible assets during 2009 amounts to 218,180 thousand euros, including 26,128 thousand euros
regarding software developed in-house by the Group.
The increase of 139,285 thousand euros in industrial patents, intellectual property rights, concessions, licences, trademarks
and similar rights, before amortisation for the year, primarily refers to:
• 123,684 thousand euros regarding the purchase and entry into service of new software applications used by the Parent
Company for innovative Mail services, WEB Oriented services and BancoPosta services and in updating Asset and
Configuration Management. New software applications were also purchased for use in the maintenance, evolution and
development of the technology infrastructures used in the sale of BancoPosta services and in the updating of the
platform used to provide multi-channel services;
• 8,770 thousand euros representing the fair value of recent developments of the software component for the ICT platform
used in the provision of virtual mobile services by PosteMobile SpA, which was purchased under a finance lease.
During the year, the Group effected reclassifications from Intangible assets in progress to Industrial patents, intellectual
property rights, concessions, licences, trademarks and similar rights, amounting to 57,615 thousand euros. This primarily
reflects the release and entry into service of new software programmes and the evolution of existing programmes.
At 31 December 2009 intangible assets include assets purchased under finance leases, the net carrying amount of which
is as follows:
7.2 - Assets held under finance leases
31 Dec 2009
Item
31 Dec 2008
Cost
Accumulated
amortisation
Net carrying
amount
Cost
Accumulated
amortisation
Net carrying
amount
37,494
(8,996)
28,498
28,398
(4,167)
24,231
37,494
(8,996)
28,498
28,398
(4,167)
24,231
Industrial patents,
intellectual property rights,
concessions, licences,
trademarks and similar rights
Total
In 2007 PosteMobile signed a contract for the supply of the hardware and software platform to be used in the provision of
virtual mobile services. The contract, which expires on 31 December 2014, envisages payment to the supplier of a set-up
fee and a series of annual fees. The contract has been accounted for as a finance lease. At 31 December 2009 the software
component amounts to 27,320 thousand euros, after accumulated amortisation. The hardware component is accounted
for in Other assets, under Property, plant and equipment (note 5), at a carrying amount of 4,600 thousand euros, after
accumulated depreciation.
During the year Italia Logistica Srl agreed to lease three divisions of a business until March 2013. The value of the right to
manage the divisions has been accounted for as a finance lease (IAS - 17 Leases, and IFRIC 4 – Determining whether an
Arrangement contains a Lease ). At 31 December 2009 the value of the intangible asset recognised is 1,178 thousand
euros, after accumulated amortisation.
The following table provides further information about the related finance leases:
7.3 - Reconciliation of total future lease payments and present value
31 Dec 2009
Payments from 1 Jan 2009
to end of lease term
Interest
Present value
Industrial patents, intellectual property rights,
concessions, licences, trademarks and similar rights
14,957
1,102
13,855
Total
14,957
1,102
13,855
Item
7.4 - Financial liabilities by maturity
31 Dec 2009
Item
within 12 months
over 5 years
Total
Industrial patents, intellectual property rights,
concessions, licences, trademarks and similar rights
6,590
7,265
-
13,855
Total
6,590
7,265
-
13,855
Goodwill, as shown in the following schedule, primarily derives from acquisitions and subsequent mergers of companies
carried out by the subsidiaries, Postel SpA and PostelPrint SpA, less accumulated amortisation until 1 January 2004.
7.5 - Goodwill
Name
Postel SpA
30,288
3,296
1,544
741
30,288
4,246
1,544
741
Total
35,869
36,819
158
Goodwill has been tested for impairment in accordance with the relevant accounting standards. Based on the prospective
information available, it was deemed necessary to write down Goodwill previously attributed to the “Multimodal” division
by 950 thousand euros.
Consolidation differences, generated by the process of eliminating the value of investments consolidated on a line-by-line
basis, represent differences between the acquisition price and the fair value of the assets acquired and liabilities assumed.
These differences regard the following companies:
7.6 - Consolidation differences
Name
Postel SpA
Mistral Air Srl
46,010
14,712
4,934
2,416
46,010
14,712
4,934
2,416
Total
68,072
68,072
Consolidation differences have also been tested for impairment in accordance with the relevant accounting standards.
There are no material indications of impairments to be accounted for in the consolidated financial statements.
8 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
This item includes the following:
8.1 - Investments
Name
Investments in subsidiaries
Investments in joint ventures
Investments in associates
12,821
1,838
6,439
24
985
Total
14,659
7,448
Changes in investments accounted for using the equity method during 2008 and 2009 are as follows:
8.2 - Changes in investments in 2008
Investment
Adjustments
Changes
accounted
Balance at
Additions/
in the basis
for using
dividend
1 Jan 2008 (Reductions) of consolidation the equity method adjustments
Subsidiaries
Address Software Srl
Balance at
31 Dec 2008
113
120
311
-
(311)
(53)
250
-
-
60
370
-
120
-
(120)
-
-
-
54
1,168
2,145
184
2,325
-
319
-
(184)
-
(54)
92
54
(94)
-
-
1,260
2,199
2,325
225
-
6,540
319
(615)
195
-
6,439
Joint ventures
Uptime SpA
24
-
-
-
-
24
Total joint ventures
24
-
-
-
-
24
Associates
Aspheria Holding SA
Docugest SpA
C-GLOBAL SpA (formerly Ge.Po SpA)
Consorzio ANAC
Other SDA Group associates
796
2,055
10
19
-
(2,055)
-
160
-
-
956
10
19
Total associates
2,880
-
(2,055)
160
-
985
Total
9,444
319
(2,670)
355
-
7,448
Consorzio Poste Contact (1)
Poste Link Scrl (2)
Consorzio per i Servizi
di Telefonia Mobile ScpA
Chronopost International Italia SpA
- in liquidation
Docutel SpA
Poste Assicura SpA
Poste Energia SpA
Poste Tributi ScpA
Poste Voice SpA
Postel do Brasil Ltda
Total subsidiaries
(1)
(2)
Poste Contact consortium is 51% owned by the Poste Welfare consortium.
On 17 November 2008 the Poste Link consortium was converted to a limited liability consortium.
160
8.3 - Changes in Investments in 2009
Investment
Subsidiaries
Adjustments
Changes
accounted
Balance at
Additions/
in the basis
for using
dividend
1 Jan 2009 (Reductions) of consolidation the equity method adjustments
Balance at
31 Dec 2008
60
370
99
-
41
499
-
101
968
1,260
2,199
2,325
225
-
5,900
-
-
(63)
77
(171)
-
-
1,197
8,176
2,325
54
-
6,439
5,999
-
383
-
12,821
Joint ventures
Uptime SpA
24
-
(24)
-
-
-
Total joint ventures
24
-
(24)
-
-
-
Associates
Docugest SpA
Consorzio ANAC
Uptime SpA (2)
956
10
19
-
24
-
825
4
-
-
1,781
10
28
19
Total associates
985
-
24
829
-
1,838
7,448
5,999
-
1,212
-
14,659
Consorzio Poste Contact (1)
- in liquidation
Docutel SpA
Poste Assicura SpA
Poste Tributi ScpA
Poste Voice SpA
Total subsidiaries
Total
(1)
(2)
The Poste Contact consortium is 51% owned by the Poste Welfare consortium (in liquidation).
Measurement using the equity method was based on the latest available financial statements for the year 31 December 2008.
Changes in 2009 regard:
• Postel SpA’s admission, on 8 October, as a new member of the Poste Contact consortium, paying in a total of 99
thousand euros18;
• the change that occurred on 22 December following expiry of the shareholder agreements entered into by the owners
of Uptime SpA, over which the Group continues to exert significant influence;
• Poste Vita SpA’s subscription, on 23 December, of a capital increase of 4,900 thousand euros and payment a further
contribution of 1 million euros to top up Poste Assicura SpA’s “provision for start-up costs”, for the purpose of converting
the latter company into a Non-life Company.
On 24 February 2010 the Parent Company transferred its interest in the wholly owned subsidiary, Poste Voice SpA, to
Poste Link Scrl, also a wholly owned subsidiary.
18. On 26 January Poste Italiane SpA’s Board of Directors approved the merger of the Poste Contact consortium, 70% owned by Poste Italiane SpA, 15%
owned by Postecom SpA and 15% by Postel SpA, with and into Poste Link Scrl, with effect for tax and accounting purposes from 1 January 2010. The
merger was completed on 24 February 2010.
9 - FINANCIAL ASSETS
At 31 December 2009 and 2008 financial assets break down as follows:
9.1 - Financial assets
31 Dec 2009
Non-current
assets
Current
assets
445,335
14
445,321
Equity instruments
Other investments
Financial assets at fair value
though the income statement
Structured bonds
Other investments
Item
Loans
Receivables
Cash flow hedges
Fair value hedging
Total
31 Dec 2008
Total
Non-current
assets
Current
assets
Total
418,521
863,856
574,732
452,941
1,027,673
1,219
417,302
1,233
862,623
50
574,682
1,187
451,754
1,237
1,026,436
22,931,938
68,949
21,192,270
1,670,719
4,844,518
3,804
4,837,182
3,532
27,776,456
72,753
26,029,452
1,674,251
15,414,300 4,087,908 19,502,208
41,832
2,304
44,136
14,028,293 4,081,519 18,109,812
1,344,175
4,085 1,348,260
10,604,145
1,232,723
8,769,793
601,629
33,409
33,409
-
10,637,554
1,266,132
8,769,793
601,629
11,817,155
1,195,464
9,976,777
644,914
35,012
35,012
78
17
61
35,090
17
35,073
156
24
132
34,016,430
5,296,526
39,312,956
9,774 11,826,929
9,770 1,205,234
4 9,976,781
644,914
13,213
1,116
12,097
13,369
1,140
12,229
27,806,343 4,563,836 32,370,179
LOANS AND RECEIVABLES
Receivables
Receivables break down as follows:
9.2 - Receivables
31 Dec 2009
Item
Due from parent
repayment of loans accounted for in liabilities
repayment of interest on loan (Law 887/84)
interest on Poste Italiane SpA’s liquidity
repayment of sums in dormant accounts
Due from buyers of service accommodation
Non-current
assets
Current
assets
31 Dec 2008
Total
Non-current
assets
Current
assets
Total
436,413
333,087
769,500
565,518
340,030
905,548
436,413
-
309,502
11,665
7,838
4,082
745,915
11,665
7,838
4,082
565,518
-
298,190
29,434
12,406
-
863,708
29,434
12,406
-
8,906
-
8,906
9,097
-
9,097
Due from overseas postal operators for international
money orders
-
3,807
3,807
-
3,665
3,665
Due from others
2
89,185
89,187
67
116,836
116,903
-
(8,777)
(8,777)
-
(8,777)
(8,777)
445,321
417,302
862,623
574,682
451,754
1,026,436
Total
162
At 31 December 2009 the fair value of receivables, totalling 745,915 thousand euros, due from the parent, the MEF, as
repayment of loans accounted for in liabilities, amounts to 777,094 thousand euros. At 31 December 2008, the fair value
of this item, which at the time had a carrying amount of 863,708 thousand euros, was 878,377 thousand euros. The
carrying amount of the other receivables in this category approximates to fair value.
Receivables due from the parent, the MEF, amounting to 769,500 thousand euros, primarily regard a receivable of 745,915
thousand euros relating to the residual principal to be repaid on loans accounted for in liabilities, and which, in accordance
with the laws that authorised the relevant loans, are to be repaid by the parent. This receivable is represented by the
amortised cost 19 of a receivable with a face value of 822,138 thousand euros, which is expected to be collected by 2016.
During 2009 the Parent Company collected receivables with a face value of 149,565 thousand euros and estimated accrued
finance income on the present value of the receivables to be 31,772 thousand euros.
On the basis of the laws referred to below, these receivables are non-interest-bearing as they relate to loans for which only
the principal is to be repaid by the government, with the exception of the loan linked to Law 887/84 20.
The face value of these receivables is as follows:
Legislation
Law
Law
Law
Law
227/75 (mechanisation of PO services)
39/82 (subsequent changes to PO services)
887/84
41/86
Total
Face value of receivable
25,772
478,843
315,277
2,246
822,138
Such items represent repayments of loans formerly disbursed by Cassa Depositi e Prestiti, in accordance with the above
laws, to the former Post and Telecommunications Office in order to fund investment between 1975 and 1993. On
conversion of the former Public Entity into a joint-stock company, the accounts payable to Cassa Depositi e Prestiti (the
provider of the loans) and the accounts receivable from the parent, the MEF, to which the relevant laws assigned the
burden of repayment, were posted in the accounts. Poste Italiane SpA is liable for interest expense through to full
repayment of the loans. The difference of 155,237 thousand euros between the face value of the receivable and the face
value of the liability of 666,901 thousand euros (note 26.2), which corresponds to the amortised cost, is due to repayment
of the principal falling due in 2009, which was collected in full in February 2010.
Receivables due from the parent, the MEF, also include:
• receivables of 11,665 thousand euros relating to interest on the loan granted under Law 887/84 accruing in 2009, which
was acknowledged by the parent, the MEF, at the same time as collection in February 2010;
• receivables of 7,838 thousand euros due as accrued interest on the deposit of Poste Italiane SpA’s liquidity with the MEF
in 2009;
• 4,082 thousand euros for amounts returned to customers holding dormant accounts, the balances of which had
previously been paid into a specific fund set up by the MEF, pursuant to Presidential Decree 116/2007. As envisaged by
MEF Circular 11439 of 13 February 2009, the Parent Company, which has advanced the sums claimed to customers, will
apply to the Ministry for reimbursement during 2010.
Amounts due from others, totalling 89,187 thousand euros, include:
• guarantee deposits, totalling 55,660 thousand euros, accounted for by the Parent Company in current assets and established
during the year in favour of counterparties with whom the Company has executed asset swap transactions (with collateral
provided by a specific Credit Support Annex) as part of its cash flow hedge policy for BancoPosta (note 16.4);
19. The amortised cost of the non-interest bearing receivable in question was calculated on the basis of the present value obtained using the risk-free interest
rate applicable at the date from which the incorporation of Poste Italiane SpA took effect (1 January 1998). The receivable is thus increased each year by
the amount of interest accrued and reduced by any amounts collected.
20. Interest was originally to be paid on this loan, but payments were suspended between 2001 and 2006, as a result of changes to the government’s budget.
Interest accrued to 31 December 2008 was, instead, paid to Poste Italiane SpA from 2007.
• 23,482 thousand euros relating to Poste Vita SpA and relating to the subscription of and payment for units of mutual
investment funds;
• 9,677 thousand euros due from a counterparty declared bankrupt in 2008, after write-downs of 8,777 thousand euros.
This refers to 9,000 thousand euros due to Poste Vita SpA in relation to the redemption of matured securities, and to 677
thousand euros resulting from early extinguishment of two Interest Rate Swaps carried out by the Parent Company in
accordance with the related contracts terms.
AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available-for-sale financial assets break down as follows:
9.3 - Available-for-sale financial assets
Item
Equity instruments
Mutual investment funds
Fiduciary deposits
Other investments
72,753
44,136
26,029,452
18,109,812
1,583,250
91,001
1,247,784
100,476
Total
1,674,251
1,348,260
27,776,456
19,502,208
The following changes took place during the year:
9.4 - Changes in available-for-sale financial assets
Equity
instruments
Fixed income
instruments
Other
investments
Total
77,611
285
6,580
(9,476)
107
(25,431)
(5,540)
15,476,654
505,169
8,751,844
386,107
23,425
(63,480)
(10,619)
332,794
(107,678)
(7,184,404)
1,503,194
49,264
(204,323)
1,447
(1,322)
-
17,057,459
505,454
8,807,688
172,308
23,532
(63,480)
(10,619)
334,241
(134,431)
(7,189,944)
Investments of own liquidity
Investments by insurance segment
Fair value gains and losses through Equity
Fair value gains and losses through profit or loss
Transfers to the income statement
Accrued income
Disinvestments of own liquidity
Disinvestments by insurance segment
44,136
54
2,854
25,323
2,338
137
(2,089)
18,109,812
124,836
19,512,677
636,291
(103,121)
16,900
332,490
(420,586)
(12,179,847)
1,348,260
246,376
82,263
261
(1,446)
(1,463)
19,502,208
124,890
19,761,907
743,877
2,338
(102,984)
16,900
332,751
(422,032)
(12,183,399)
72,753
26,029,452
1,674,251
27,776,456
Investments of own liquidity
Investments by insurance segment
Fair value gains and losses through Equity
Transfers to the income statement
Impairments
Accrued income
Disinvestments of own liquidity
Disinvestments by insurance segment
164
Financial instruments classified as Available-for-sale financial assets report an increase in fair value of 743,877 thousand
euros for 2009. This amount reflects:
• fair value gains of 726,204 thousand euros deriving from the measurement of securities held by Poste Vita SpA, with
729,525 thousand euros transferred to policyholders, whilst a contra-entry is made in technical provisions, without
therefore having any impact on consolidated Equity;
• net fair value gains of 17,673 thousand euros deriving from the measurement of other financial instruments, with 17,567
thousand euros on equity instruments, fixed income instruments and deposits held by the Parent Company.
The sum of the above changes in the fair value of Available-for-sale financial assets during 2009 results in a net increase
in the relevant Equity reserve of 14,352 thousand euros (note 22.1).
Equity instruments
Equity instruments primarily include:
• 60,808 thousand euros relating to the fair value of 350,628 class B shares in MasterCard Incorporated (at 31 December
2008, 350,628 shares with a fair value of 34,134 thousand euros). In accordance with the issuer’s memorandum of
association, the class B shares are convertible into class A shares, which are quoted on the New York Stock Exchange,
at an exchange ratio of one for one from May 2010. During the year Poste Italiane SpA carried out forward sales of
150,000 shares in its portfolio, with settlement in 2010, with further forward sales of 50,000 shares carried out in early
2010 (note 9.6);
• 4,500 thousand euros regarding the historical cost of the Parent Company’s 15% interest in Innovazione e Progetti ScpA,
the value of which is unchanged with respect to the previous year.
Fixed income instruments regard investments held by Poste Vita SpA, totalling 25,898,066 thousand euros (17,684,020
thousand euros at 31 December 2008). This refers to listed instruments with a face value of 25,118,099 thousand euros
issued by European governments and major European companies. 24,792,262 thousand euros (17,154,762 thousand euros
at 31 December 2008) of this amount is linked to separately managed accounts. Under the shadow accounting method
applied, unrealised gains and losses on these instruments are entirely transferred to policyholders and recognised in
technical provisions. The remaining amount regards the insurance Company’s investment of free capital. Changes during
the year under review primarily regard modifications to the allocation of assets associated with Branch I policies, involving
a gradual increase in Italian government securities compared with overseas government securities, whilst, however,
maintaining the structural characteristics.
This item also includes fixed income instruments with a value of 101,143 thousand euros purchased by the Parent Company
and issued by Cassa Depositi e Prestiti SpA via a private placement with a face value of 100,000 thousand euros.
Other investments
Other investments regard:
• units of mutual investment funds, primarily equity funds, with a value of 1,583,250 thousand euros (1,247,784 thousand
euros at 31 December 2008) subscribed almost entirely by Poste Vita SpA and allocated to the insurance company’s
separately managed accounts. The balance is made up by 3,271 thousand euros relating to the fair value of units of
mutual investment funds held by the Parent Company;
• a fiduciary deposit with a face value of 107,500 thousand euros, established by the Parent Company in 2002 and expiring
on 5 July 2012, and paying interest at a floating rate: the fair value of the fiduciary deposit at 31 December 2009 is 91,001
thousand euros (100,476 thousand euros at 31 December 2008).
The deposit was established on the assignment of an official rating to Poste Italiane SpA and represents liquidity reserves
designed to guarantee bondholders and provide positive elements on which rating agencies can base their assessments 21.
21. At 31 December 2009 approximately 74% of the deposit is held as liquidity, with the remainder invested in bonds. The Parent Company has an option on the
deposit which, in the event of exercise, guarantees the recovery of approximately 84% of the face value. In addition, the depositor has executed credit
derivatives, where protection from certain issuers’ credit risk has been sold to third parties, with a notional value of 75 million euros.
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
Changes in financial assets at fair value through profit or loss were as follows in 2008 and 2009:
9.5 - Changes in financial assets at fair value through profit or loss
Fixed income
instruments
Structured
bonds
1,397,485
350,181
(165,653)
9,770
(386,549)
Other
investments
Total
10,326,668
480,767
12,204,920
3,067,033
(1,109,889)
4
(2,307,035)
193,812
24,714
(54,379)
3,611,026
(1,250,828)
9,774
(2,747,963)
1,205,234
9,976,781
644,914
11,826,929
749,013
108,013
1,286
(797,414)
2,235,902
994,827
(4,437,717)
67,867
24,612
(135,764)
3,052,782
1,127,452
1,286
(5,370,895)
1,266,132
8,769,793
601,629
10,637,554
Additions/Disbursements
Accrued income
Reductions/settlement of accrued income
Accrued income
Reductions/settlement of accrued income
Financial instruments classified as at fair value through profit or loss are held by the subsidiary, Poste Vita SpA and regard:
• fixed income instruments of 1,266,132 thousand euros (1,205,234 thousand euros at 31 December 2008), consisting of
727,241 thousand euros in coupon stripped BTPs covering obligations associated with Branch III insurance policies
issued during the year, with the balance primarily made up of corporate bonds issued by blue-chip companies and
primarily linked to separately managed accounts in Branch I;
• structured bonds of 8,769,793 thousand euros (9,976,781 thousand euros at 31 December 2008) relating to investments
whose returns are linked to the performances of particular market indexes, primarily designed to cover the insurance
company’s obligations to the holders of Branch III index-linked policies; the item also includes instruments issued by the
securitisation vehicle, Programma Dinamico SpA, with a fair value of 333,946 thousand euros (900,672 thousand euros
at 31 December 2008);
• other investments totalling 601,629 thousand euros (644,914 thousand euros at 31 December 2008) regarding units of
mutual investment funds primarily acquired to cover obligations to the holders of Branch III unit-linked policies.
DERIVATIVE FINANCIAL INSTRUMENTS
Changes in derivative assets and payable are as follows:
9.6 - Changes in derivative financial instruments
Note
Purchases
Fair value gains and losses
Differentials due
of which:
Derivative assets
Derivative liabilities
[22.1]
[9.1]
[26.1]
2009
Fair value
through
Cash flow Fair value
profit or
hedging
hedging
loss
2008
Total
Cash flow Fair value
hedging
hedging
Fair value
through
profit or
loss
Total
(2,261)
4,278
(2,286)
(3)
(2,320)
9
(28,083)
41,760
8,230
3
(30,347)
41,760
10,188
(2,274)
1,507
(1,398)
(2,370)
17
12,374
(12,394)
4,688 6,212
(25,278) (14,302)
(7,493) (22,257)
(269)
(2,314)
21,910
19,327
(2,261)
(3)
(28,083) (30,347)
(269)
17
(2,331)
35,073
(12,489)
35,090
(15,089)
1,140
(3,401)
(3)
12,229 13,369
(40,312) (43,716)
166
Cash flow hedges
At 31 December 2009 outstanding derivative financial instruments with a fair value of 269 thousand euros consist
exclusively of two currency forwards executed in March 2007 by Mistral Air SpA in order to hedge the foreign exchange
risk linked with a notional amount of 8.9 million US dollars. This sum relates to the fees payable to suppliers for the lease
of three aircraft.
Changes in fair value during the year and the value of accrued differentials reported in table 9.6 regard:
• the above two currency forwards and a third currency forward that expired on 31 December 2009;
• seven Interest Rate Swaps (IRSs) executed by the Parent Company and expiring on 15 September 2009. These swaps,
with a notional amount of 295 million euros, were executed to hedge interest payments on the EIB loan of 400 million
euros extinguished on maturity on 15 September 2009 (note 26.3);
• an Interest Rate Swap (IRS) executed by the Parent Company and expiring on 30 July 2009. The swap was executed to
hedge cash inflows from fixed income securities with a face value of 100 million euros, redeemed by the issuer on 30
July 2009.
Fair value hedges
The asset balance consists of a forward sale contract, with a notional amount of 0.5 million US dollars, executed by Mistral
Air Srl to hedge the value of a guarantee deposit paid.
The balance of liabilities, regarding the Parent Company, consist of:
• 1,527 thousand euros representing the fair value of two forward sale contracts, with settlement on 30 April 2010,
regarding 150,000 class B shares in Mastercard Incorporated executed on 9 November and 2 December 2009 to hedge
the exposure of these shares to price risk;
• 804 thousand euros representing the fair value of two forward sale contracts for US dollars executed on 9 November and
7 December 2009 to hedge the sale price of the above 150,000 shares.
In early 2010 the Parent Company agreed further forward sales of 50,000 class B shares in Mastercard Incorporated,
settled on 30 April 2009. Foreign currency hedges were also executed in this regard.
Derivative financial instruments at fair value through profit or loss
At 31 December 2009 outstanding transactions primarily regard warrants and forward purchases of securities or warrants
executed by the insurance company, Poste Vita SpA to cover obligations associated with Branch I and Branch III policies
already distributed or in the process of being distributed, in addition to forward currency sales to hedge the redemption
values at maturity of securities covering insurance policy obligations.
The following transactions took place during 2009:
• the settlement of forward transactions executed in 2008 regarding the conversion of the “Classe 3A Valore Reale” and
“Ideale” index-linked products into Branch I policies (note 3 – Reputational risk);
• extinguishment of currency forwards outstanding at 31 December 2008, except for a forward sale contract of 3.1 million
US dollars executed to hedge the redemption values at maturity of securities denominated in this currency; at 31
December 2009 these instruments record fair value losses of 21 thousand euros;
• the purchase, at a price of 41,760 thousand euros, of Index Linked Secured Limited Recourse Warrants with a notional
value of 800 million euros, in order to hedge the indexed component of returns on the new Branch III “Alba” policy,
issued during the year; at 31 December 2009 the warrant records fair value gains of 34,880 thousand euros;
• the execution of 51 forward BTP purchase contracts with a total notional amount of 2,125 thousand euros, which, at 31
December 2009, includes: 422 thousand euros hedging obligations associated with Branch I policies (primarily the “Posta
Valore Più” separate portfolio product), recording fair value losses of 1,415 thousand euros (the balance of fair value
losses of 1,476 thousand euros and fair value gains of 61 thousand euros); and 1,703 thousand euros hedging obligations
associated with the new Branch III “Terra” policy in the process of being distributed, recording fair value losses of 6,132
thousand euros;
• the forward purchase of Index Linked Warrants with a notional value of 1,500 million euros to hedge the indexed
component of returns on the new Branch III “Terra” policy in the process of being distributed at 31 December 2009; at
this date the fair value of the forward purchase records a loss of 4,860 thousand euros.
10 - DEFERRED TAXES
The following table shows deferred tax assets and liabilities:
10.1 - Deferred taxes
Item
Deferred tax assets
Total
644,844
(417,328)
641,285
(310,226)
227,516
331,059
The nominal tax rates are 27.5% for IRES and 3.90% for IRAP (+/- 0.92% as a result of regional surtaxes and/or relief).
Changes in deferred tax assets and liabilities are shown below:
10.2 - Changes in deferred tax assets and liabilities
Item
Deferred tax income/(expenses) recognised in profit or loss
Deferred tax income/(expenses) recognised in Equity
Direct transfers to current tax assets
2009
2008
331,059
91,332
(168,764)
(26,111)
-
207,206
192,273
(68,005)
(415)
227,516
331,059
The balance deferred tax assets and liabilities recognised in profit and loss in the year under review includes non-recurring
income deriving from recalculation by the Parent Company and certain subsidiaries of deferred taxes, as a result of the
realignment of the tax bases of assets and liabilities and their carrying amounts, as provided for by article 15 of the socalled Decreto Anticrisi (Legislative Decree 185) of 29 November 2008. It also reflects the recognition of deferred tax
assets following Postel SpA’s decision to frank goodwill with a value, solely for tax purposes, of 60,035 thousand euros,
as described more fully in note 42.
The following table shows a breakdown of changes in deferred tax assets and liabilities according to principal event that
generated the movement.
168
10.3 - Changes in deferred tax assets
Item
Property
Fees
Financial
plant and
to be assets and
equipment amortised
liabilities
61,361
Deferred tax income/(expenses)
recognised in profit or loss
(12,575)
recognised in Equity
48,786
(652)
recognised in profit
or loss on realignment
18,851
66,985
Provisions
adjustments
to assets
Accum. and charges
Trade
for
liabilities
Staff
and other
receivables
Other
costs
Total
22,003
136,537
90,213
185,656
33,108
33,327
7,977
570,182
(6,860)
(9,464)
30,431
84,546
(6,013)
2,668
(93)
82,640
15,143
(11,243)
115,830
120,644
10
270,212
27,095
35,995
130
(434)
7,580
(11,113)
(424)
641,285
(11,272)
39
4,555
7,125
63
(24,416)
14,545
(10,013)
-
(5,952)
(27)
(378)
(4,944)
(2,298)
-
5,252
3,871
8,431
118,348
125,172
276,959
22,214
9,281
(111)
22,014
8,320
644,844
Deferred tax assets represent the benefit expected to derive from reduced future tax charges due to temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts. They primarily reflect the expected
benefit of the future deductibility of certain provisions for liabilities (276,959 thousand euros), of adjustments to assets
(125,172 thousand euros), of the impairment and discounting of trade receivables (22,214 thousand euros), of amounts due
to staff (9,281 thousand euros), and of fee income payable to Poste Vita SpA and deferred, in application of IAS 18, over
the term of individual policies (3,871 thousand euros). Deferred tax assets also reflect temporary differences arising
between the tax bases of financial assets and liabilities their carrying amounts, as a result of application of IAS 39 (118,348
thousand euros). Finally, deferred tax assets on Property, plant and equipment (66,985 thousand euros) primarily regard the
properties transferred from Poste Italiane to the subsidiary, EGI SpA, in 2001, recognising the deferred tax benefits
generated by calculation, at the time of the transfer, of taxation on the higher taxable value recognised for Investment
property, and the deferred tax assets recognised following Postel SpA’s decision to frank goodwill.
10.4 - Changes in deferred tax liabilities
Item
Property,
Financial
plant and Intangible assets and Deferred
equipment
assets
liabilities
gains
143,562
8,676
Deferred tax expenses/(income) recognised in Equity
Deferred tax expenses/(income) recognised in profit or loss
(franking of off-book deductions)
(104,436)
(franking of off-book deductions)
on realignment
Discounted
staff
termination
benefits
Other
Total
77,521 6,971
(5,757) (1,721)
(26,327)
37
362,976
38,365
70,529
31,295
2,041
-
83,497
27,794
96,819
20,130
7,332
-
(24,057)
-
-
(17,629) (1,876) (147,998)
-
-
-
(13,637)
(9)
-
(13,637)
(9)
47,802
4,128
9,279
3,089
208,110
(11,145)
27,462
(5,549)
14,162
5,079
3,411
84
310,226
(4,314)
(46,887)
-
-
(122)
177,071
-
-
(44,675)
13
26,111
(95)
-
(91,779)
177,084
26,111
5,043
12,368
373,914
21,913
690
3,400
417,328
Deferred tax liabilities reflect the benefit obtained as the result of a lower current tax charge due to temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts. These liabilities primarily refer to taxable
temporary differences arising between the tax bases of financial assets and liabilities their carrying amounts, as a result of
application of IAS 39 (373,914 thousand euros). The increase during 2009 is due to changes in the fair value reserve described
in note 22.1. Deferred tax liabilities also derive from taxable temporary differences between the tax bases and carrying
amounts of intangible assets (12,368 thousand euros) and property, plant and equipment (5,043 thousand euros), and from
the deferral of gains (21,913 thousand euros).
At 31 December 2009 and 2008 deferred tax assets and liabilities recognised directly in Equity are as follows:
10.5 - Deferred tax assets and liabilities recognised in Equity
Increases/(Decreases) in Equity
2009
2008
Item
Fair value reserve for available-for-sale financial assets
Cash flow hedge reserve for hedging derivatives
Actuarial gains/(losses) on staff termination benefits
Actuarial gains/(losses) on staff termination benefits from franking
of off-book deductions in previous years
(169,712)
1,072
(124)
(79,358)
(28,848)
26,564
-
13,637
Totale
(168,764)
(68,005)
From 2009 actuarial gains or losses accruing on staff termination benefits within the limits established by tax regulations give
rise to the recognition of current taxes accounted for directly in Equity. For this reason, as described in notes 10.2 and 10.4,
a portion of the reduced charge for deferred tax expenses in 2008, amounting to 26,111 thousand euros, deriving from the
Parent Company’s actuarial losses for that year, was recognised in 2009 as a direct reduction in current tax expenses paid.
Current tax expenses on actuarial gains on staff termination benefits for 2009 amount to 13,704. As a result, the total tax
charge accounted for in Equity is 182,468 thousand euros.
11 - OTHER NON-CURRENT ASSETS
11.1 - Other non-current assets
Item
Note
Long-term portion of trade receivables due from Public Sector entities
Long-term portion of receivables due from staff under
fixed-term contracts settlement of 2006
Long-term portion of receivables due from staff under
fixed-term contracts settlement of 2008
Long-term portion of receivables due from IPOST under
fixed-term contracts settlements of 2006-2008
Provisions for doubtful debts due from staff
[13.2]
Prepaid taxes
Third-party deposits in Postal Savings Books registered
in the name of Poste Italiane SpA
Total
254,315
281,169
43,758
65,975
140,843
90,428
51,384
(2,189)
(2,189)
233,796
340,133
6,073
154,214
244,600
5,476
3,101
1,326
838,744
3,248
234
688,941
170
Trade receivables are described in note 13.
The long-term portion of receivables due from staff under fixed-term contracts settlements consists of salaries and the
relevant contributions to be recovered following the agreements of 13 January 2006 and 10 July 2008 between the Parent
Company and the labour unions, regarding the re-employment by court order of staff previously employed on fixed-term
contracts. As shown in the following table, these receivables regard the total residual present value of amounts due from
staff and the pension fund, IPOST, at 31 December 2009, totalling 302,937 thousand euros (after provisions for doubtful
debts). Amounts due from staff are recoverable in the form of variable instalments, the last of which is due in 2029. Under
an agreement reached with IPOST on 23 December 2009, contributions are to be recovered in straight-line six-monthly
instalments, the last of which is due in 2014.
11.2 - Receivables due from staff under fixed-term contracts settlement
31 Dec 2009
Item
Non-current
assets
31 Dec 2008
Current
assets
Total
Face
value
Non-current
assets
Current
assets
Total
Face
value
Receivables due from staff
under agreement of 2006 (1)
Receivables due from IPOST3 (3)
43,758
16,375
60,133
66,974
65,975
19,701
85,676
96,883
140,843
51,384
(2,189)
38,923
13,843
-
179,766
65,227
(2,189)
213,159
69,215
-
90,428
(2,189)
64,565
-
154,993
(2,189)
176,889
-
Total
233,796
69,141
302,937
154,214
84,266
238,480
(1) Discounted on the basis of the forward interest rate curve for government securities in issue at 30 June 2006.
(2) Discounted on the basis of the forward interest rate curve for government securities in issue at 31 December 2008 in the case of individual
agreements entered into in 2008, and on the basis of the forward interest rate curve for government securities in issue at 30 June 2009 for individual
agreements entered into in the first half of 2009.
(3) Discounted on the basis of the forward interest rate curve for government securities in issue at 31 December 2009.
The current portion of 69,141 thousand euros is accounted for in Other current receivables and assets (note 15).
Prepaid taxes include 339,986 thousand euros relating to a total receivable of 373,450 thousand euros (including 33,464
thousand euros accounted for in Current assets, as described in note 15.1), representing advance payment by Poste Vita
SpA of withholding tax and substitute tax on capital gains on life assurance policies for the years 2005 to 2009. Of this
amount, the sum of 95,520 thousand euros, calculated on the basis of provisions at 31 December 2009, regards the
amount still to be paid and accounted for in Other tax liabilities (note 29.4).
12 - INVENTORIES
Net inventories break down as follows:
12.1 - Inventories
Item
Increase/(Decrease)
Work in progress, semi-finished and finished goods
and goods for resale
Properties held for sale
Raw, ancillary and consumable materials
Work in progress
23,940
11,680
8,888
8,087
25,106
11,680
8,606
8,087
(1,166)
282
-
Total
52,595
53,479
(884)
Work in progress, semi-finished and finished goods and goods for resale primarily refer to stocks of goods to be sold by
Poste Shop SpA, which are primarily held in stock at post offices, and stationary and forms used in the Postel Group’s eprocurement activities.
Properties held for sale regard a number of properties in EGI SpA portfolio that are to be sold. The fair value of these
properties at 31 December 2009 amounts to approximately 83 million euros and is unchanged with respect to 31
December 2008.
Raw, ancillary and consumable materials primarily include the materials used by the Postel Group for printing and
enveloping, and the SIM cards and scratch cards used by PosteMobile SpA and mainly held in stock at post offices.
Work in progress refers to the value of a long-term contract awarded to the BRPOSTAL consortium, of which the Postel
Group is a member, regarding the sale of an integrated hybrid e-mail platform in Brazil. Work on this contract, which was
halted in 2006 for reasons beyond the consortium’s control and then re-started, was again suspended by the Brazilian
authorities in 2007, due to alleged irregularities in the tender process organised by the Brazilian Post Office (Empresa
Brasileira de Correios e Telegrafos-ECT ). In 2008 the Brazilian authorities recommended that ECT cancel the contract
award. The consortium filed appeal against cancellation of the contract, but this was ruled inadmissible due to a procedural
irregularity. In view of the inadmissibility of the appeal and the impossibility, therefore, that the contract may once again
enter into effect, Postel SpA is considering whether or not to wind up the consortium. At the same time, the company has
reserved the right to verify whether or not it has grounds to take action against the lead contractor, American Banknote
Ltda, who was responsible for filing the appeal beyond the time limit.
In compliance with paragraph 32 of IAS 11, in 2007 Postel SpA made provisions for contract risks (note 24.2). Based on
the information currently available, the provisions are held to be sufficient to cover the risk of a potential breach of contract
by the Brazilian customer.
13 - TRADE RECEIVABLES
Trade receivables break down as follows:
13.1 - Trade receivables
Item
Customers
Parents
Subsidiaries
Associates
Joint ventures
Prepayments to suppliers
Total
Non-current
assets
Current
assets
254,315
254,315
Total
Non-current
assets
Current
assets
Total
3,044,101
1,124,197
4,691
2,749
2,154
60
3,298,416
1,124,197
4,691
2,749
2,154
60
281,169
-
2,659,225
903,515
4,646
3,104
3,049
133
2,940,394
903,515
4,646
3,104
3,049
133
4,177,952
4,432,267
281,169
3,573,672
3,854,841
172
CUSTOMERS
These items break down as follows:
13.2 - Customers
Non-current
assets
Current
assets
Overseas correspondents
Ministries and public entities
254,315
Users of telegraphic services
Unfranked mail delivered on behalf of third
parties and other valued added services
Parcel, express courier and express
parcel services
Property management
Other trade receivables
Total
Item
254,315
Total
Non-current
assets
Current
assets
Total
938,601
232,337
1,042,314
45,252
938,601
232,337
1,296,629
45,252
281,169
-
755,381
250,354
927,941
46,811
755,381
250,354
1,209,110
46,811
434,946
434,946
-
442,245
442,245
146,672
21,090
448,089
(265,200)
146,672
21,090
448,089
(265,200)
-
143,299
31,880
341,925
(280,611)
143,299
31,880
341,925
(280,611)
3,044,101
3,298,416
281,169
2,659,225
2,940,394
This regards 918,045 thousand euros in accrued fees for the management of postal savings accounts in 2009, with the
remainder regarding previous years.
231,506 thousand euros regards amounts due to the Parent Company from overseas correspondents for postal services
carried out on behalf of overseas postal operators, whilst 831 thousand euros derives from international telegraphic services.
These items regard amounts due from the following entities:
• Cabinet Office - Publishing department: 750,643 thousand euros due to the Parent Company, corresponding to a face
value of 801,136 thousand euros, relating to publisher tariff subsidies for the financial years from 2001 to 2009. The
receivable is accounted for at its present value to take account of the time it is expected to take to collect the amount
due in accordance with the regulations in force and the information available. For this reason, the sum of 254,315
thousand euros (corresponding to a face value of 304,809 thousand euros) is classified in Other non-current assets (note
11.1). In accordance with a specific Cabinet Office Decree issued in 2009, the collection of 44,449 thousand euros has
been further postponed and is now to be paid over the next seven years, resulting in recognition of a loss of 4,431
thousand euros as an effect of further discounting of the sum due;
• 99,043 thousand euros due from INPS and INAIL, including 73,979 thousand euros due for the payment of pensions
and attributable entirely to 2009, and 20,037 thousand euros due to the subsidiary, Poste Link Scrl for the Contact
Centre service;
• 72,250 thousand euros due to the Parent Company from the tax authorities, primarily deriving from the postage of
•
•
•
•
•
•
unfranked mail (17,247 thousand euros), the collection of tax returns (14,771 thousand euros), integrated mail services
(11,726 thousand euros), the collection of Government taxes (9,028 thousand euros), and the payment of tax rebates
(8,029 thousand euros);
54,958 thousand euros due to the Parent Company from the Ministry for Economic Development, including 51,232
thousand euros as reimbursement of the costs associated with the management of property, vehicles and security
(including 3,213 thousand euros in amounts accrued during the year);
44,734 thousand euros payable to the Parent Company by the Ministry of Justice, primarily for the delivery of legal
process (23,352 thousand euros) and for the payment service for legal system expenses (19,229 thousand euros);
35,353 thousand euros due to the Parent Company from the Ministry of Internal Affairs, including 17,704 thousand
euros as payment for the franking of mail on credit and 17,649 thousand euros for integrated notification services;
29,778 thousand euros due from the Municipality of Rome, including 28,561 thousand euros due to the Parent
Company for the delivery of legal process and 1,217 thousand euros due to Poste Link Scrl for the Contact Centre
service;
15,665 thousand euros due from the Municipality of Milan to the Parent Company, primarily for the delivery of legal
process;
15,367 thousand euros due to the Parent Company from Lazio Regional Authority, primarily for the delivery of legal
process.
These receivables regard telegrams ordered by telephone (34,196 thousand euros) and other telegraphic services (11,056
thousand euros).
Unfranked mail delivered on behalf of third parties and other value added services
288,212 thousand euros of this item regards receivables deriving from the Bulk Mail service and other value added
services, whilst a further 146,734 thousand euros regards receivables deriving from the delivery of unfranked mail on
behalf of third parties.
Parcel, express courier and express parcel services
These receivables refer to services provided by the subsidiary, SDA Express Courier SpA, and to the mailing of parcels by
the Parent Company.
Property management
These receivables primarily derive from the sale of residential and commercial properties, and from the lease of commercial
and residential properties and units housing canteens and bars. The sum of 7,222 thousand euros regards the subsidiary,
EGI SpA, including 4,243 thousand euros in rental income due from the Ministry of the Economy and Finance.
Other trade receivables primarily include the following items relating to the Parent Company:
• fees and charges due from current account holders, totalling 145,158 thousand euros;
• receivables deriving from the sale of insurance and banking products, and from personal loans, overdrafts and mortgages
disbursed on behalf of third parties (120,158 thousand euros);
• receivables deriving from unfranked mail on own behalf (37,886 thousand euros);
• receivables deriving from the distribution of telephone directories (12,277 thousand euros).
174
Changes in provisions for doubtful debts are as follows:
13.3 - Changes in provisions for doubtful debts
Item
Balance at
Net Deferred
1 Jan 2008 provisions revenues
Change
in basis of
Balance
Net Deferred
Uses consolidation 31 Dec 2008 provisions revenues
Change
in basis of
Balance
Uses consolidation 31 Dec 2009
Overseas postal operators 6,646
Public Sector entities
125,836
Private customers
86,739
46,362
10,470
3,213
1,144 (4,680)
(23)
6,646
175,411
93,650
1,613
(23,558)
5,368
3,213 (1,426)
970 (2,423)
-
8,259
153,640
97,565
For overdue interest
219,221
4,438
56,832
2,939
4,357 (4,680)
- (2,473)
(23)
-
275,707
4,904
(16,577)
2,861
4,183 (3,849)
- (2,029)
-
259,464
5,736
Total
223,659
59,771
4,357 (7,153)
(23)
280,611
(13,716)
4,183 (5,878)
-
265,200
Net provisions (releases of provisions) for doubtful debts are accounted for in the income statement in Other operating costs
(note 40.1), or, if referring to receivables accruing during the year, via deferral of the related revenues. Provisions regarding
amounts due from Public Sector entities regard amounts that may not be recoverable as a result of legislation restricting public
spending, delays in payment and problems at debtor entities. A portion of these provisions, totalling 26,490 thousand euros,
was released to the income statement in 2009, following collection of certain items originally held to be unrecoverable.
PARENTS
Amounts receivable entirely regard trade receivables due to the Parent Company from the Ministry of the Economy and
Finance. The following table shows a breakdown:
13.4 - Trade receivables due from parents
Item
Universal Service
Remuneration of current account deposits
Publisher tariff and electoral subsidies
Payment for delegated services
Payment for distribution of euro coins
Other
Provisions for doubtful debts due from parents
Total
841,503
201,778
109,064
36,322
6,026
6,734
(77,230)
469,673
343,157
60,233
56,037
6,950
21,484
(54,019)
1,124,197
903,515
Universal Service subsidies include 371,830 thousand euros representing the amount accrued during 2009, 363,636
thousand euros referring to the amount accrued in 2008, and 33,642, 63,722 and 8,663 thousand euros regarding residual
amounts accrued in 2007, 2006 and 2005. Whilst awaiting finalisation of a number of addenda to the Contratto di
Programma (Planning Agreement) for the period 2006-2008 dated 17 September 2008, and due to restrictions on public
spending, no amounts in the form of Universal Service subsidies were collected in 2009.
The remuneration of current account deposits refers entirely to amounts accruing in 2009 and almost entirely regards the
deposit of funds deriving from accounts opened by Public Sector entities.
Electoral subsidies include 67,441 thousand euros accruing in 2009, with the remainder attributable to previous years. At
31 December 2009 these receivables have not been budgeted for by the Government.
Payments for delegated services regard fees for treasury services carried out on behalf of the State under the recently
renewed Agreement with the MEF. 28,350 thousand euros regards amounts accruing in 2009, which 7,972 thousand euros
regards the residual amount due for 2008 and 2007.
Payment due for the distribution of euro coins includes 6,026 thousand euros for the supply and delivery of euro
converters, carried out at the time on behalf of the Cabinet Office. As in 2008, these receivables have not been budgeted
for by the Government.
Other receivables due from parents essentially refer to the transport and franking of mail on credit and services linked to
the “Social Card”.
Balance at
Deferred
1 Jan 2008 Provisions revenues
7,874
46,145
-
Balance at
Deferred
Uses 31 Dec 2008 Provisions revenues
-
54,019
23,211
-
Uses
Balance at
31 Dec 2009
-
77,230
As in 2008, provisions for doubtful debts due from parents take account, overall, of the potential impact of legislation and
other policies regarding the government’s management of the public finances, which could make it difficult to collect
receivables recognised on the basis of legislation, contracts and agreements in force at the time of recognition. The
provisions reflect the best estimate of unrecoverable amounts in view of the fact that these receivables have not been
budgeted for by the government and based on the related financial effects.
SUBSIDIARIES
Trade receivables due from unconsolidated subsidiaries are as follows:
13.6 - Trade receivables due from subsidiaries
Name
Poste Tributi ScpA
Docutel SpA
Consorzio Poste Contact
Poste Assicura SpA
Poste Voice SpA
Consorzio Poste Welfare - in liquidation
1,568
1,535
982
364
144
98
-
1,029
1,831
983
444
246
88
25
Total
4,691
4,646
ASSOCIATES
This item amounts to 2,749 thousand euros (3,104 thousand euros at 31 December 2008) and primarily includes amounts
due from minor companies owned by SDA Express Courier SpA.
176
JOINT VENTURES
This item amounts to 2,154 thousand euros (3,049 thousand euros at 31 December 2008) and includes the portion of a
receivable due from Italia Logistrica Srl not accounted for using proportionate consolidation.
14 - CURRENT TAX ASSETS
Under IAS 12 – Income taxes, IRES and IRAP credits are accounted for less the corresponding Current tax liabilities, given
that they are taxes applied by the same tax authority to the same taxable entity, which has a legally enforceable right to
offset and intends to exercise this right. A breakdown is as follows:
14.1 - Current tax assets
Item
IRES credits
Credit due to claim for IRES rebate
IRAP credits
5,247
38,042
7,069
7,942
27,300
7,821
Total
50,358
43,063
The credit due to a claim for an IRES rebate, totalling 38,042 thousand euros at 31 December 2009, is primarily attributable
to the Parent Company. It refers to excess taxation paid by the Company as a result of the non-deductibility of 10% of IRAP
between 2003 and 2007. The right to a rebate of 27,300 thousand euros for the period 2003-2006 was recognised in 2008,
as the specific claim filed previously was upheld pursuant to art. 6 of the Law Decree of 29 November 2008, converted
into Law 2 of 28 January 2009. The right to a rebate of a further 10,742 thousand euros was recognised in 2009 following
submission of a claim for 2007.
15 - OTHER CURRENT RECEIVABLES AND ASSETS
15.1 - Other current receivables and assets
Item
Prepaid taxes
Provisions for doubtful debts due from others
Accrued income and prepaid expenses from trading transactions
Total
274,901
279,582
353,033
352,028
(131,566)
(111,573)
49
73
9,921
10,504
506,338
530,614
PREPAID TAXES
These primarily include 226,958 thousand euros in advances that the Parent Company has paid to the tax authorities,
including 188,810 thousand euros in stamp duty to be paid in virtual form in 2010, and 38,148 thousand euros as withholding
tax on interest paid to current account holders for 2009. A further 33,464 thousand euros regards tax credits attributable to
Poste Vita SpA, as described in note 11.1.
RECEIVABLES DUE FROM OTHERS
These primarily regard:
• 92,379 thousand euros (69,574 thousand euros at 31 December 2008) payable to BancoPosta by the heirs of INPS
pensioners, following the collection of pension payments after the death of the pensioners concerned;
• 69,141 thousand euros (84,266 thousand euros at 31 December 2008) relating to the current portion of the receivable
described in note 11.2 and due from staff previously employed on fixed-term contracts, who have been subsequently reemployed after acceptance of the union agreements of 13 January 2006 and 10 July 2008;
• 63,158 thousand euros deriving from the recharging of third-party postal current account holders of stamp duty paid by
the Parent Company in virtual form in accordance with existing legislation (63,157 thousand euros at 31 December 2008);
• amounts to be recovered by BancoPosta from the holders of postal savings books, totalling 14,929 thousand euros
(16,530 thousand euros at 31 December 2008), due to transactions in the process of being settled;
• 13,079 thousand euros in amounts stolen from the Parent Company in December 2007 as a result of an attempted fraud.
This amount is currently held by an overseas bank and may only be recovered once completion of the necessary legal
formalities enables it to be released and returned to Poste Italiane SpA. The estimated time it will take to collect this
receivable was taken into account when updating provisions for doubtful debts for 2009;
• 12,327 thousand euros (22,694 thousand euros at 31 December 2008) due from ministries and Public Sector entities in
the form of pay and contributions for personnel seconded to them by Poste Italiane SpA 22.
PROVISIONS FOR DOUBTFUL DEBTS DUE FROM OTHERS
15.2 - Changes in provisions for doubtful debts due from others
Item
Sundry receivables attributable to BancoPosta
Public Sector entities for sundry services
Other
Total
Balance at
1 Jan 2008
Provisions
Uses
Balance at
31 Dec 2008
Provisions
Uses
Balance at
31 Dec 2009
68,685
20,325
11,227
17,437
(6,779)
737
(18)
(41)
86,104
13,546
11,923
21,374
(2,095)
902
(171)
(17)
107,307
11,451
12,808
100,237
11,395
(59)
111,573
20,181
(188)
131,566
Provisions for sundry receivables attributable to BancoPosta regard amounts that the Group is expected to have difficulty
in recovering from private customers for transactions to be settled.
Provisions for amounts due from Public Sector entities regard accrued payments for the Parent Company’s staff seconded
to ministries and Public Sector entities. A portion of these provisions was released to the income statement in 2009,
following collection of certain items originally held to be unrecoverable.
22. During 2009 the number of seconded staff gradually fell from 24 at 1 January to 18 at 31 December.
178
16 - ASSETS AND LIABILITIES ATTRIBUTABLE TO BANCOPOSTA
These items refer to the balances of financial transactions carried out by the Parent Company pursuant to Presidential Decree
144/2001. In particular, these transactions regard management of the liquidity deposited in postal current accounts, carried
out under the BancoPosta name, but subject to restrictions on the investment of such liquidity in compliance with the
applicable legislation. The transactions also regard the management of collections and payments in the name and on behalf
of third parties. These include the collection of postal savings (savings books and savings certificates), carried out on behalf
of Cassa Depositi e Prestiti and the MEF, and services delegated by Public Sector entities. Among other things, these
transactions involve the use of cash advances from the Italian Treasury and the recognition of receivables awaiting financial
settlement. The specific agreement with the MEF, which was renewed by Ministerial Decree on 18 June 2009 and is valid
until 31 December 2010, requires BancoPosta, from 1 July 2009, to provide daily statement of cash flows, with a delay of one
bank working day with respect to the transaction date. Until 30 June 2009, under the previous agreement the delay was 3
working days.
The liquidity deriving from current account deposits by Public Sector entities must be invested with the MEF and is
remunerated at a floating rate in accordance with the specific agreement with the MEF approved by Ministerial Decree on 7
April 2009 and valid until 31 December 2010. This agreement applies the European Commission’s Decision of 16 July 2008.
In compliance with the 2007 Budget Law, with effect from 2007 the Parent Company is required to invest the funds raised
from deposits paid into postal current accounts by private customers in euro area government securities.
The above agreement with the MEF for treasury services, which was renewed on 18 June 2009, has confirmed that a
limited portion of the funds deriving from deposits paid into postal current accounts by private customers may be invested
in a specific account held at the MEF (the so-called Buffer Account). This is done with the aim of ensuring a certain
flexibility with regard to investments in view of daily movements in amounts payable to current account holders. These
deposits are remunerated at a rate equal to the average yield on Short-term Italian Treasury Certificates (BOT) in the
relevant six-month period.
ASSETS ATTRIBUTABLE TO BANCOPOSTA
These assets are shown less the Group’s liquidity (note 16.7) and include:
16.1 - Assets attributable to BancoPosta
Item
Investments in securities
Amounts due from the Italian Treasury
Other receivables
28,458,973
40,969
8,320,632
839,808
706,910
2,660,696
26,765,256
67,352
6,336,538
2,775,665
1,434,826
2,319,734
Total assets attributable to BancoPosta
41,027,988
39,699,371
Poste Italiane SpA’s own liquidity held in postal current accounts
(1,515,829)
(790,180)
Total
39,512,159
38,909,191
This item regards investments in fixed income euro area government securities with a face value of 27,307,350 thousand
euros, including 27,101,350 thousand euros invested in Italian government bonds, 115,000 thousand euros invested in
French government bonds (“OAT”) and 91,000 thousand euros invested in German government bonds.
Investments break down as follows:
16.2 - Investments in securities
Maturing
within
12 months
between 1
and 5 years
over
5 years
Total
Face
value
Held-to-maturity (HTM)
Available-for-sale (AFS)
Held for trading (FVPL)
1,309,278
926,088
551,195
2,786,561
5,263,433
5,384,927
498,524
11,146,884
6,053,282
6,682,648
95,881
12,831,811
12,625,993
12,993,663
1,145,600
26,765,256
12,519,800
12,630,200
1,150,000
26,300,000
Held-to-maturity (HTM)
Available-for-sale (AFS)
Held for trading (FVPL)
1,320,679
1,322,486
104,021
2,747,186
5,423,361
5,777,388
11,200,749
6,543,072
7,967,966
14,511,038
13,287,112
15,067,840
104,021
28,458,973
13,114,650
14,092,700
100,000
27,307,350
Securities
The composition of this portfolio aims to replicate the financial structure of deposits paid into postal current accounts by
private customers. Trend analysis for forecasting and prudential purposes is based on appropriate statistical models
developed by a leading market player. An Asset & Liability Management system has been created to management the
match between customer deposits and investments.
Changes in investments in securities in 2008 and 2009 were as follows:
16.3 - Changes in investments in securities
HTM
FVPL
Carrying
amount
Face
value
Fair
value
Balance at 31 December 2007 13,000,000 13,117,177
Purchases
1,772,700
1,778,988
Sales
(110,000)
(113,837)
Redemptions
(2,142,900) (2,142,900)
Transfers to Equity reserves
(15,263)
Increase/(Decrease)
in accrued income
(12,871)
14,699
Changes in fair value
-
12,700,000
7,229,400
(5,808,100)
(1,491,100)
-
12,727,697
7,247,463
(5,807,798)
(1,491,100)
613
-
(9,337)
37,750
288,375
Purchases
3,220,850
3,281,112
Sales
(1,326,000) (1,367,855)
Redemptions
(1,300,000) (1,300,000)
32,211
Increase/(Decrease)
in accrued income
11,760
3,891
-
12,630,200
4,208,750
(1,835,000)
(911,250)
-
12,993,663
4,299,497
(1,883,985)
(911,250)
(15,778)
-
(717)
34,430
551,980
-
14,092,700
15,067,840
100,000
Securities
Face
value
AFS
Face
value
Total
Fair
value
Face
value
Carrying
amount
2,150,000 2,125,834
(1,000,000) (984,282)
-
25,700,000
11,152,100
(6,918,100)
(3,634,000)
-
25,844,874
11,152,285
(6,905,917)
(3,634,000)
(14,650)
936
3,112
-
(21,272)
52,449
291,487
1,150,000 1,145,600
2,923,750 2,928,565
(3,773,750) (3,770,351)
(200,000) (200,000)
-
26,300,000
10,353,350
(6,934,750)
(2,411,250)
-
26,765,256
10,509,174
(7,022,191)
(2,411,250)
16,433
325
(118)
-
11,368
38,321
551,862
104,021
27,307,350
28,458,973
-
180
At 31 December 2009 the fair value of the held-to-maturity portfolio, accounted for at amortised cost, is 13,932,780 thousand
euros (including 201,446 thousand euros in accrued daily interest payments). During the year under review the Parent
Company substituted investments in German Bunds with a face value of 338,000 thousand euros and in French OATs with a
face value of 988,000 thousand euros with Italian Long-term Treasury Certificates (BTPs) with the same face value and residual
term to maturity. The accounting treatment adopted complies with IAS 39.
The fair value of the available-for-sale portfolio is 15,067,840 thousand euros (including 193,883 thousand euros in accrued
daily interest payments). A fair value gain of 551,980 thousand euros was recorded during the period under review and
recognised in the relevant Equity reserve.
The following changes in securities held for trading at fair value through profit or loss took place during the period. These
transactions were executed with the primary aim of investing temporary spikes in deposits. In particular:
• spot purchases with a face value of 1,965,000 thousand euros were settled (including purchases with a value of 300,000
thousand euros already concluded in 2008);
• sales of securities with a face value of 2,815,000 thousand euros were settled, including 150,000 thousand euros in spot
transactions, 1,450,000 thousand euros in forward transactions executed in 2008, and 1,215,000 thousand euros in
forward transactions executed in 2009;
• securities purchased during the year, with a face value of 200,000 thousand euros, reached maturity;
• the notional value of forward purchases of securities with a face value of 958,750 thousand euros has been recognised;
these were subsequently sold on the same terms in response to changed market conditions, in the belief that it was
appropriate to proceed with their substitution.
At 31 December 2009 the fair value of other securities held in portfolio, having a face value of 100,000 thousand euros,
104,021 thousand euros (including 1,859 thousand euros in accrued daily interest payments). Changes in the fair value of
securities recognised in profit or loss in 2009 amount to a loss of 118 thousand euros.
Changes in derivative financial instruments during the year are as follows::
Cash flow hedges
Forward purchases
notional fair value
FVPL
Asset swaps
notional fair value
Forward purchases
notional fair value
Forward sales
notional fair value
Total
notional fair value
-
-
-
-
-
-
-
-
-
-
3,373,150
34,016
1,674,950
(8,972)
-
-
3,970,000
(7,149)
9,018,100
17,895
Gains/(losses)
through profit or loss (*)
-
(3,196)
-
-
-
-
-
300
-
(2,896)
Transactions settled (**)
(2,414,400)
19,750
-
12,929
-
- (2,520,000)
4,769 (4,934,400)
37,448
Balance at 31 December 2008 958,750
50,570
1,674,950
3,957
-
-
Fair value gains/(losses)
1,450,000
(2,080)
4,083,700
52,447
Discontinued CFHs
(958,750)
(50,570)
-
-
958,750
50,570
-
-
-
-
2,802,850
49,854
2,458,750
(50,431)
-
9,316
2,273,750
(27,826)
7,535,350
(19,087)
-
-
-
-
(9,256)
29,899 (8,322,350)
(76,217)
Gains/(losses)
through profit or loss (*)
-
7,520
-
(16,776)
-
(2,224,850)
(16,405)
(1,515,000)
(29,825)
(958,750)
Balance at 31 December 2009 578,000
40,969
2,618,700
(93,075)
-
-
(59,886) (3,623,750)
100,000
(7)
3,296,700
(52,113)
Including:
Derivative assets
(*)
(**)
578,000
40,969
-
-
-
-
-
-
578,000
40,969
-
-
2,618,700
(93,075)
-
-
100,000
(7)
2,718,700
(93,082)
Gains and losses recognised in profit or loss refer to differentials accruing on asset swaps and any ineffective portions of hedges classified in Other income
and Other expenses from financial activities. Fair value gains and losses on financial instruments measured at fair value through profit or loss are also
accounted for separately in these income statement items.
Transactions settled include forward transactions settled, accrued differentials and the extinguishment of asset swaps linked to securities sold.
During 2009 the Parent Company carried out the following transactions in relation to cash flow hedges:
• the extinguishment of forward purchases outstanding at 31 December 2008 with a notional value of 958,750 thousand
euros, and resulting from discontinued 23 cash flow hedges, with reclassification of the hedges to derivative financial
instruments at fair value through profit and loss (note 16.3);
• forward purchases (cash flow hedges of forecast transactions) with a total notional value of 2,802,850 thousand euros,
including 578,000 thousand euros yet to mature at 31 December 2009;
• the execution of asset swaps on securities purchased during the period and with a notional value 2,458,750 thousand
euros, and the extinction of asset swaps on securities sold, which were already protected by cash flow hedges, with a
notional value of 1,515,000 thousand euros; as a result of these transactions, at 31 December 2009 the Parent Company
reports outstanding assets swaps with a total notional value of 2,618,700 thousand euros, with which it has purchased
a fixed rate of 4.83% (the weighted average of the rates provided for in the contracts) and sold a floating rate on Italian
Long-term Treasury Certificates indexed to inflation (BTP€i).
These instruments recorded an overall decrease in fair value of 577 thousand euros during the period, which is reflected
in the cash flow hedge reserve.
Finally, with regard to derivative financial instruments measured at fair value through profit or loss, in addition to the above
discontinued hedges, carried out via forward sales, forward sales with a total notional value of 2,665,000 thousand euros
were settled during 2009. These transactions are described in the note to Financial instruments classified as at fair value
This item includes liquidity, amounting to 6,804,803 thousand euros, deriving from the postal current account deposits
of Public Sector entities transferred to the parent under the restriction established by the Regent’s Decree of 22
November 1945. It also includes 1,515,829 thousand euros in deposits (the so-called Buffer Account) provided for in the
above change to the Agreement with the MEF approved by the Ministerial Decree of 14 December 2007.
This item breaks down as follows:
16.5 - Amounts receivable from/(payable to) the Italian Treasury
Item
882,544
(729,443)
3,004,733
(892,058)
153,101
2,112,675
Ministry of Justice
Ministry of the Economy and Finance
29
686,678
(21,348)
684,338
Total
839,808
2,775,665
Amounts receivable from to Treasury
MEF postal current accounts and other payables
Sub-total
The net balance of amounts payable to and receivable from the Italian Treasury is represented by advances from the MEF
to meet the cash requirements of post offices, less transfers of deposits and any excess liquidity by the Parent Company.
23. Interruption of the application of hedge accounting following a decision by management, or due to the early sale or extinguishment of the hedged or
hedging instrument, and the consequent application of a different accounting treatment, as required by the relevant IFRS.
182
At 31 December 2009 the credit balance of this item has decreased with respect to 31 December 2008, primarily due to
the reduction in the delay in reporting to the MEF from 1 July 2009, as described in note 16 above.
Other receivables
Other receivables primarily relate to bank and postal cheques and bankers’ drafts (346,211 thousand euros), and amounts
due from customers in the form of withdrawals from ATMs yet to be registered on their accounts (84,007 thousand euros).
Cash and cash equivalents attributable to BancoPosta
16.6 - Cash and cash equivalents
Item
Cash in hand
Cheques
Bank deposits
2,627,251
124
33,321
2,197,948
566
121,220
Total
2,660,696
2,319,734
Cash essentially regards cash in hand held at post offices and by companies that provide cash transportation services
whilst awaiting transfer to the Italian Treasury.
LIABILITIES ATTRIBUTABLE TO BANCOPOSTA
Liabilities attributable to BancoPosta are accounted for after deducting the Group’s liquidity held in postal current accounts
in the names of consolidated companies. These liabilities break down as follows:
16.7 - Liabilities attributable to BancoPosta
Item
Note
Payables deriving from postal current accounts
Balance of cash flows from management of postal savings
Other payables
[16.4]
Total liabilities attributable to BancoPosta
(Amounts payable to consolidated companies for postal current accounts)
39,469,143
70,766
290,904
93,082
39,923,895
(2,205,574)
37,966,254
572,456
580,478
14,905
39,134,093
(2,070,441)
Total
37,718,321
37,063,652
These payables regard amounts due to Gruppo Poste Italiane companies, totalling 96,882 thousand euros (99,223 thousand
euros at 31 December 2008). This includes 23,880 thousand euros deposited in postal current accounts by Poste Vita SpA
(38,550 thousand euros at 31 December 2008). The increase in the overall balance with respect to 31 December 2008 is
due to an increase in deposits by private customers.
Balance of cash flows from management of Postal savings
This item represents the balance of withdrawals less deposits during the last day of 2009 and cleared on the first day of
the subsequent year. The balance at 31 December 2009 consists of 86,936 thousand euros payable to Cassa Depositi e
Prestiti (692,650 thousand euros at 31 December 2008) and a receivable due from the MEF for issues falling within its
competence, totalling 16,170 thousand euros (120,194 thousand euros at 31 December 2008).
Other payables
Other payables primarily regard 215,104 thousand euros in cheques presented for payment into postal savings books.
Amounts payable to consolidated companies for postal current accounts
At 31 December 2009 the Group’s liquidity held in postal current accounts to be deducted from BancoPosta’s liabilities
amounts to 2,205,574 thousand euros. This amount is normally represented by demand deposits with the MEF held in the
so-called Buffer Account, totalling 1,515,829 thousand euros (note 16.1), and investments in securities, totalling 689,745
thousand euros (note 17.1), deriving from deposits in the form of financial instruments not subject to investment
restrictions (note 26.6).
17 - CASH AND CASH EQUIVALENTS
Item
Bank and Postal Office deposits
Cash in hand
Postal deposits invested
in Assets attributable to BancoPosta
-
485,572
2,715,535
12,993
2,728,528
3,613,983
12,412
3,626,395
(689,745)
(1,280,261)
2,038,783
2,346,134
Total
2,038,783
2,831,706
In execution of the European Commission’s Decision of 16 July 2008 regarding State aid 24, the amounts deposited in a specific
fixed-term bank account in 2008 were paid to the MEF on 15 January 2009.
24. This regards a complaint by the Italian Bankers’ Association (ABI) in December 2005, alleging that Poste Italiane SpA had benefited from State aid, including
with regard to the remuneration received on postal current account deposits, which the Parent Company is required to deposit with the MEF. With regard to
the method of calculation of this remuneration, on 16 July 2008 the European Commission issued the above Decision finding against the arguments submitted
by the Italian authorities. The Commission maintains that the level of the interest rates paid to the Parent Company between 1 January 2005 and 31 December
2007 (pursuant to art. 1, paragraph 31 of Law 266 of 23 December 2005, the “2006 Budget Law”), in terms of both the method of calculation and the level of
movement in the base rate, are higher than those that would be paid by a “private borrower”. The Commission, therefore, found that the above remuneration
constitutes State aid, as being incompatible with art. 88, paragraph 3 of the EU Treaty. The Italian government is thus required to recover the related sum from
Poste Italiane SpA.
184
Cash is primarily deposited in postal current accounts. In 2009 these deposits were remunerated on the basis of the yield
on short-term deposits with the MEF held in the so-called Buffer Account (note 16). Remuneration of these cash deposits
is shown separately in Finance income (note 41.1), as opposed to revenue deriving from the investment of deposits from
third parties (note 30.4).
Bank and post office deposits include 25,874 thousand euros that has been frozen as a result of court orders relating to a
number of legal actions.
Postal deposits invested in Assets attributable to BancoPosta reflect the fact that, in compliance with the provisions of the
2007 Budget Law, funds deriving from deposits paid into postal current accounts by private customers, and therefore also
the liquidity of Group companies held in postal current accounts (note 16.7), are invested in euro area government
securities, which are accounted for in Assets attributable to BancoPosta (note 16.1).
18 - NON-CURRENT ASSETS HELD FOR SALE
18.1 - Non-current assets held for sale
2009
2008
Cost
Impairments
Carrying amount
6,749
(2,118)
(1,159)
3,472
808
(265)
543
Disposals (2)
Reclassification from provisions for other liabilities and charges
Total changes
492
(2,679)
(2,187)
3,457
(528)
2,929
Cost
Impairments
Carrying amount
2,687
(937)
(465)
1,285
6,749
(2,118)
(1,159)
3,472
Cost
Total
1,681
(724)
(465)
492
6,734
(2,118)
(1,159)
3,457
Disposals (2)
Cost
Total
(5,743)
1,905
1,159
(2,679)
(793)
265
(528)
These assets refer to industrial buildings belonging to the Parent Company for which the related sales process has been
completed, and which are expected to fetch a total price of over four million euros. Recognition of this item has not
resulted in charges recognised in the income statement.
19 - SHARE CAPITAL
The share capital consists of 1,306.11 million ordinary shares with a par value of 1 euro each. The shares are held as
follows:
• 848,971,500 ordinary shares, representing 65% of the share capital, held by the Ministry of the Economy and Finance;
• 457,138,500 ordinary shares, representing 35% of the share capital, held by Cassa Depositi e Prestiti società per azioni
(CDP SpA).
At 31 December 2009 all the shares in issue are fully subscribed and paid up. No preference shares have been issued and
the Parent Company does not hold treasury shares.
The following table shows a reconciliation of the Parent Company’s equity and profit/(loss) for the year with the
consolidated amounts:
19.1 - Reconciliation of Equity
Equity
at
31 Dec 2009
Changes
in Equity
2009
Profit/
(Loss)
for 2009
Equity
at
31 Dec 2008
Changes
in Equity
2008
Profit/
(Loss)
for 2008
Equity
at
1 Jan 2008
4,076,920
251,272
736,660
3,088,988
(541,920)
720,796
2,910,112
634,677
-
134,925
499,752
-
117,187
382,565
1,204
-
1,212
(8)
-
355
(363)
(19,877)
(2,798)
-
(17,079)
9,166
-
(26,245)
193
797
-
(604)
(1,199)
-
595
(6,547)
-
17,493
(24,040)
-
10,695
(34,735)
(47,415)
(78,420)
(12,837)
664
-
2,152
2,256
-
(49,567)
(80,676)
(12,837)
664
-
2,156
22,212
-
(51,723)
(102,888)
(12,837)
664
- Effects of intercompany transactions
(1,893)
-
-
(1,893)
-
-
(1,893)
- Elimination of adjustments to value
of consolidated investments
-
88,742
-
11,777
76,965
Financial Statements
of Poste Italiane SpA
- Undistributed Profit/(Loss)
of investee companies
- Investments accounted
- Balance of FV and CFH
reserves of investee companies
- Accounting treatment of actuarial gains
and losses on staff termination benefits
of investee companies
- Fees to be amortised attributable
to Poste Vita SpA (*)
- Effects of contributions and transfers
of business units between Group companies:
EGI SpA
PostelPrint SpA
PosteShop SpA
88,742
-
- Amortisation until 1 Jan 2004/impairment
of consolidation differences
(71,028)
-
-
(71,028)
-
(1,212)
(69,816)
- Effect of tax consolidation arrangement
3,384
-
3,384
-
-
-
-
- Other consolidation adjustments
7,143
-
5,908
1,235
-
(1,384)
2,619
4,574,910
249,271
903,990
3,421,649
(533,953)
882,582
3,073,020
Equity attributable to shareholders
of the Parent Company
- Minority interest (excluding profit/(loss))
- Minority interest in profit/(loss)
Minority interest in Equity
Total Consolidated Equity
(*)
13
-
-
13
13
-
-
-
-
-
-
-
-
-
13
-
-
13
13
-
-
4,574,923
249,271
903,990
3,421,662
(533,940)
882,582
3,073,020
This adjustment regards deferment of fees payable for the distribution by Poste Vita SpA of Life products classified as financial and Non-life products. As
distribution takes place via Poste Italiane SpA’s network, the deferment is eliminated.
186
20 - SHAREHOLDER TRANSACTIONS
In accordance with the resolution passed by the General Meeting of shareholders on 27 April 2009, the Parent Company
paid dividends amounting to 150,000 thousand euros (based on a dividend of 0.11 euros per share).
21 - EARNINGS PER SHARE
The calculation of basic and diluted earnings per share (EPS) was based on the Group’s profit for the year. The denominator
used in the calculation of both basic and diluted EPS is represented by the number of the Parent Company’s shares in issue,
given that no financial instruments with potentially dilutive effects have been issued at 31 December 2009 or 31 December
2008.
22 - RESERVES
Reserves break down as follows:
22.1 - Reserves
Increases/(Decreases) in fair value during the year
Tax effect of changes in fair value
Amounts reclassified to profit or loss
Tax on amounts reclassified to profit or loss
Gains/(Losses) recognised directly in Equity
Appropriation of remaining profit for 2007
Amounts reclassified to profit or loss
Tax on amounts reclassified to profit or loss
Gains/(Losses) recognised directly in Equity
Legal
reserve
Fair value
reserve
Cash flow
hedge
reserve
Total
75,116
37,195
105,947
287,882
(92,116)
(43,926)
12,832
164,672
-
(178,923)
23,646
(7,588)
66,440
(21,260)
61,238
-
2,140
311,528
(99,704)
22,514
(8,428)
225,910
37,195
112,311
270,619
(117,685)
265,245
36,040
566,332
(180,075)
(32,651)
10,363
363,969
-
3,701
(888)
(6,409)
1,960
(1,636)
-
570,033
(180,963)
(39,060)
12,323
362,333
36,040
148,351
634,588
(119,321)
663,618
The fair value reserve regards changes in the fair value of Available-for-sale financial assets. During the year changes
totalling 566,332 thousand euros included:
• 551,980 thousand euros relating to the fair value gain on BancoPosta’s investments in securities described in note 16.3;
• 14,352 thousand euros regarding the net fair value gain on investments described in note 9.4.
The Cash flow hedge reserve, which substantially relates to the Parent Company, reflects changes in the fair value of the
effective portion of cash flow hedges outstanding. Net fair value gains of 3,701 thousand euros during 2009 have resulted
in changes in the reserve. This amount reflects:
• a net loss of 577 thousand euros in the value of derivative financial instruments described in note 16.4;
• a net gain of 4,278 thousand euros in the value of derivative financial instruments described in note 9.6.
23 - TECHNICAL PROVISIONS FOR INSURANCE BUSINESS
These provisions refer to obligations the subsidiary, Poste Vita SpA, has made to its policyholders, inclusive of deferred
liabilities resulting from application of the shadow accounting method. They break down as follows:
23.1 - Technical provisions for insurance business
Item
Mathematical provisions
Outstanding claims provisions
Technical provisions where investment risk is transferred to policyholders
Other provisions
for operating costs
for deferred liabilities due to policyholders
Technical provisions for claims
26,805,825
122,360
8,459,359
537,509
87,076
450,433
2,068
20,780,219
35,264
7,757,396
(240,507)
93,046
(333,553)
690
Total
35,927,121
28,333,062
Details of changes are shown in the table regarding Changes in technical provisions for insurance business and other
claims expenses (note 35).
24 - PROVISIONS FOR LIABILITIES AND CHARGES
Changes in provisions are as follows:
24.1 - Changes in provisions in 2008
Item
Provisions for non-recurring charges (*)
Provisions for disputes with third parties
Provisions for disputes with staff (1)
Provisions for invalidated postal savings certificates
Provisions for taxation/social security contributions
Other provisions
Total
Overall analysis of provisions:
- non-current portion
- current portion
(*)
(1)
Balance
Released)
1)
at 31 Dec
Finance to income)
2007 Provisions
costs statement)
91,655
237,518
402,617
19,467
16,595
98,769
76,658
118,311
505,201
167
37,349
1,863
624
13
25
(3,722) (10,811)
(72,321) (12,119)
(40,695) (240,480)
(643)
(4,490)
(22,639) (36,677)
866,621
737,686
2,525
(139,377) (305,220)
349,596
517,025
866,621
Balance adjusted in application of IFRIC 13 (note 2.3).
Including 431,428 thousand euros for staff costs and 33,078 thousand euros for service costs (legal assistance).
Change Balance
in basis at 31 Dec
Uses) consolidation
2008
(13)
-
153,780
273,239
626,643
19,448
12,285
76,827
(13) 1,162,222
339,486
822,736
1,162,222
188
Item
Provisions for taxation/social security contributions (2)
Other provisions
Total
- current portion
(*)
(1)
(2)
Balance
at 31 Dec
2008
Provisions
Finance
costs
Released)
to income)
statement)
Uses)
Balance
at 31 Dec
2009
153,780
273,239
626,643
19,448
12,285
76,827
55,058
39,083
252,689
115,000
3,328
59,556
1,229
571
13
53
(6,090)
(27,627)
(26,692)
(2,988)
(75,673)
(102,321)
(210,408)
(555)
(1,170)
(1,093)
127,075
183,603
642,232
115,000
19,464
14,456
132,355
1,162,222
524,714
1,866
(63,397)
(391,220)
1,234,185
1)
339,486
822,736
335,201
898,984
1,162,222
1,234,185
Including 198,074 thousand euros for staff costs and 27,923 thousand euros for service costs (legal assistance).
Including 121 thousand euros for tax liabilities for the year.
Provisions for non-recurring charges regard operating risks connected with the Group’s financial and insurance activities.
Provisions for the year amount to 55,058 thousand euros and primarily regard potential revisions of fees received for the
distribution of financial products, fines that may result from investigations of Poste Italiane SpA by supervisory authorities,
and residual expected charges to be incurred by Poste Vita SpA as a result of the conversion of a number of index-linked
policies (note 3 – Reputational risk). Provisions of 75,673 thousand euros were used to cover the above liabilities and other
less significant charges arising either arising or settled during the year. Provisions are based on the present value of
identified liabilities.
Provisions for disputes with third parties regard expected liabilities deriving from different types of legal and out-of-court
dispute with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers.
These provisions also regard contract risks deriving from Postel SpA’s Brazilian activities (note 12). Provisions, which reflect
the present value of identified liabilities, were increased by the estimated value of new liabilities (39,083 thousand euros),
measured on the basis of the expected outcomes of certain disputes, legal actions and negotiations. Reductions relate to
the non-occurrence of liabilities identified in the past (27,627 thousand euros) and the value of disputes settled (102,321
thousand euros). The latter includes 75,000 thousand euros regarding settlement, without any further charges, of the
dispute between the Parent Company and Cassa Depositi e Prestiti relating to achievement of the targets for postal
savings deposits in 2008.
Provisions for disputes with staff regard liabilities that may arise following labour litigation and disputes of various types,
but largely attributable to the Parent Company’s use of fixed-term employment contracts. In this regard, having accepted
the terms of the agreement of 10 July 2008 (see note 37), in early 2009 a number of the relevant staff withdrew their
claims and a portion of the provisions, totalling 26,692 thousand euros, was released to the income statement. Provisions
of 252,689 thousand euros regard an updated estimate, based on the level of negative outcomes deriving from the related
litigation and union agreements, of the estimated liabilities and related legal expenses. Uses, amounting to 210,408
thousand euros, include amounts used to cover the cost of settling disputes, including 4,901 thousand euros in the form
of asset seizures by the Parent Company’s creditors. Provisions are based on the present value of identified liabilities,
which are believed to be short term.
Provisions for restructuring charges regard the estimated liabilities to be incurred by the Company in the form of
redundancy payments, based on current evidence. At least three thousand staff are expected to leave the Company by 31
December 2010.
Provisions for invalidated postal savings certificates, relating to the Parent Company, have been made to cover the cost of
redeeming invalidated certificates relating to specific issues. The provisions represent amounts recognised in revenue in
the income statements of the Parent Company in the years in which the certificates became invalid. The provisions were
made in response to the Parent Company’s decision to redeem such certificates even if invalidated. At 31 December 2009
the provisions represent the present value of total liabilities, based on a face value of 22,873 thousand euros, which are
expected to be progressively paid off by 2023. The Parent Company redeemed certificates with a total face value of 555
thousand euros in 2009, and made provisions for finance costs totalling 571 thousand euros.
Provisions for taxation/social security contributions have been made to cover potential future tax liabilities. Provisions of
3,328 thousand euros, in addition to finance costs, were made during the year for new liabilities. Uses of 1,170 thousand
euros reflect the settlement of a number of sundry taxes.
The other provisions cover probable liabilities of various types, including: estimated liabilities deriving from the risk that
specific legal actions to be undertaken in order to reverse seizures of the Parent Company’s assets may be insufficient to
recover the related amounts; the risk that a deterioration in certain indicators used as the basis for the long-term business
plans of Group companies, on which impairment testing of the relevant goodwill is based, may result in a reduction in the
value of such goodwill (note 2.4); claims for rent arrears on properties used free of charge by Poste Italiane SpA; and claims
for payment of accrued interest expense due to certain suppliers. Uses regard the payment of rent arrears. Provisions and
releases to the income statement in 2009 reflect updated estimates of the various liabilities.
25 - STAFF TERMINATION BENEFITS
Following the reform of supplementary pension provision, from 1 January 2007 companies with over 50 employees must
pay vested staff termination benefits into a supplementary pension fund or into a Treasury Fund set up by INPS (should
the employee have exercised the specific option provided for by the new legislation). Staff termination benefits qualify as
a defined contribution plan and thus represent an expense to be recognised at face value in staff costs. In the case of
certain Group companies, however, staff termination benefits vesting up to 31 December 2006 continue to represent
accumulated liabilities qualifying as a defined benefit plan, for which actuarial calculation is necessary. A similar treatment
is applied to vested staff termination benefits at Group companies with less than 50 employees.
The following changes in staff termination benefits took place in 2009 and 2008:
25.1 - Changes in staff termination benefits
2009
Curtailment
current service cost
interest component
effect of actuarial gains/(losses)
Provisions for the year:
Uses during the year
Reduction due to fixed-term contracts settlement of 2008
2008
1,514,928
399
69,758
(50,766)
1,478,650
430
74,886
96,606
19,391
(82,644)
(5,721)
171,922
(125,666)
(247)
(9,731)
1,445,954
1,514,928
190
The current service cost is recognised in Staff costs (note 37.1), whilst the interest component is recognised in Finance
costs (note 41.2).
During 2009 net uses of provisions for staff termination benefits amounted to 82,644 thousand euros, represented by
benefits paid, totalling 85,190 thousand euros, and substitute tax of 3,949 thousand euros, net of additions of 6,495
thousand euros regarding the transfer of provisions for disputes with staff formerly on fixed-term contracts who have
been re-employed by the Parent Company.
Following acceptances in 2009 of the agreement of 10 July 2008, described in note 37, provisions for staff termination
benefits have been reduced by a further 5,721 thousand euros.
The major actuarial assumptions applied in calculating staff termination benefits are as follows:
Discount rate
Staff turnover 25 (summary data)
2009
2008
4,00%
0,49%
4,60%
0,49%
26 - FINANCIAL LIABILITIES
Non-current
liabilities
Current
liabilities
1,690,799
Borrowings
Bonds
Shareholder loans
Bank borrowings
Other borrowings
Total
Non-current
liabilities
Current
liabilities
Total
-
1,690,799
2,816,018
-
2,816,018
1,574,577
751,304
512,667
250,000
60,606
246,408
19,375
166,850
10,891
49,292
1,820,985
770,679
679,517
260,891
109,898
1,789,770
751,801
679,517
250,000
108,452
642,547
19,386
160,718
417,870
44,573
2,432,317
771,187
840,235
667,870
153,025
Cash flow hedges
Fair value hedges
120
120
-
14,969
149
2,331
12,489
15,089
269
2,331
12,489
23
20
3
-
43,693
3,381
40,312
43,716
3,401
3
40,312
Financial liabilities due to subsidiaries
-
1,351
1,351
-
824
824
270,536
2,083,241
2,353,777
272,279
1,979,554
2,251,833
156,801
113,735
7,803
2,075,438
164,604
2,189,173
156,826
115,453
10,556
1,968,998
167,382
2,084,451
3,536,032
2,345,969
5,882,001
4,878,090
2,666,618
7,544,708
Item
Amounts deriving from liability
for robberies
Sundry financial liabilities
Total
25. Frequency of early termination of employment due to resignations and dismissals.
FINANCIAL LIABILITIES AT FAIR VALUE
Financial liabilities at fair value through profit or loss are linked to investment contracts issued by the insurance company,
Poste Vita SpA. These liabilities have decreased following redemptions of 1,291,815 thousand euros, largely as a result of
the conversion of a number of index-linked policies described in note 3 (Reputational risk), and have increased due to the
change in fair value, amounting to 166,596 thousand euros (note 36.1).
BORROWINGS
Borrowings are unsecured and are not subject to financial covenants, requiring Group companies to comply with certain
financial ratios, or maintain a certain level of rating. The bonds in issue and bank borrowings are subject to standard
negative pledge clauses 26.
Bonds
Bonds regard fixed rate bonds issued by the Parent Company, paying coupon interest of 5.25% and with a par value of 750
million euros. The bonds, which were issued in two tranches in 2002, are listed on the Luxembourg Stock Exchange and
were placed in the form of a public offering to institutional investors. These 10-year bonds are to be redeemed in a lump
sum in July 2012. The current portion of the loan represents accrued interest expense. The fair value (“mid price”) of the
bonds at 31 December 2009 is 780,825 thousand euros (790,950 thousand euros at 31 December 2008).
Shareholder loans
This item refers to fixed rate loans issued to the Parent Company by Cassa Depositi e Prestiti. The laws authorising the
expenditure financed by the loans also establish the methods of repayment, as shown in the following table:
26.2 - Shareholder loans
Loans to be
repaid in full
by Poste Italiane
12,212
Legislation
Law 15/74
Law 34/74
Loans with
principal to be
repaid by parent
-
Loans with principal
and interest to be
repaid by parent (2)
-
Total
12,212
404
-
-
404
-
21,885
-
21,885
Law 39/82 (subsequent changes to PO services) (1)
-
382,714
-
382,714
Law 887/84
-
-
260,344
260,344
Law 227/75 (serv. acc.)
Law 41/86
(1)
(1)
(1)
Total
(1)
(2)
-
1,958
-
1,958
12,616
406,557
260,344
679,517
Loans to be repaid by the Ministry of the Economy and Finance (principal: 666,901 thousand euros)
From 2001 interest was no longer paid by the Government but by Poste Italiane SpA. From 2006 interest has been paid to the Parent Company.
The fair value of the loans is 711,212 thousand euros (853,789 thousand euros at 31 December 2008).
The outstanding principal assigned by law to the Ministry of the Economy and Finance is offset by a receivable, accounted
for in Financial assets, due from the parent. Collection of the amount receivable is linked to the repayment schedules for
the loans (note 9.2).
26. A commitment given to creditors by which a borrower undertakes not to give senior security to other lenders ranking pari passu with the pre-existing
creditors, unless the same degree of protection is offered to them also.
192
Bank borrowings
26.3 - Bank borrowings
Item
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
Floating rate 7-year loan from EIB
maturing 15 Sept 2009
Floating rate loan from DEPFA Bank
Current account overdrafts
Accrued interest expense
-
-
-
-
400,000
400,000
250,000
-
10,144
747
250,000
10,144
747
250,000
-
13,731
4,139
250,000
13,731
4,139
Total
250,000
10,891
260,891
250,000
417,870
667,870
The value of the above financial liabilities approximates to fair value.
Drawdowns on the Group’s total committed and uncommitted lines of credit, totalling 1,313,437 thousand euros, amount
to 10,144 thousand euros. The lines of credit are unsecured.
Other borrowings
This item regards:
• 75,966 thousand euros in fixed rate loans issued to the Parent Company by CPG Società di Cartolarizzazione arl. The two
loans, totalling 309,874 thousand euros, denominated “Logistics 2002” and “Layout 2002”, were sold without recourse
by Cassa Depositi e Prestiti to C.P.G. Società di Cartolarizzazione arl in 2003. These ten-year loans were used to finance
certain projects. The fair value of these borrowings is 80,291 thousand euros (116,537 thousand euros at 31 December
2008);
• 33,932 thousand euros (including 271 thousand euros in accrued interest) regards the outstanding principal due on
financial liabilities due to suppliers of durable goods acquired under finance leases, with the right to acquire ownership
at the end of the lease (note 5 and 7).
This item, amounting to 15,089 thousand euros, regards contracts described in note 9.6.
FINANCIAL LIABILITIES DUE TO SUBSIDIARIES
These liabilities regard intercompany current accounts paying interest at market rates with subsidiaries not consolidated on a
line-by-line basis. The following table shows a breakdown.
26.4 - Financial liabilities due to subsidiaries
Name
Poste Tributi ScpA
Poste Assicura SpA
1,351
-
804
20
Total
1,351
824
OTHER FINANCIAL LIABILITIES
Amounts deriving from liability for robberies
The Parent Company is liable to the Italian Treasury for losses resulting from robberies and fraud. The loss of cash resulting
from these criminal acts has to be made up for, in order to ensure that post offices can carry out their daily operations. This
is done via withdrawals from the Treasury. Changes in this liability are as follows:
26.5 - Changes in amounts deriving from liability for robberies
Note
Liabilities deriving from robberies during the period
Repayments made
[40.1]
2009
2008
167,382
173,204
9,964
(12,742)
10,997
(16,819)
164,604
167,382
During 2009 the Parent Company made repayments of 12,717 thousand euros to the Treasury for robberies that took place
in the second half of 2008 and the first four months of 2009, in addition to payment of the sum of 25 thousand euros
following a sentence issued by the Italian Court of Auditors regarding robberies up to 31 December 1993.
Sundry financial liabilities are generated by BancoPosta activities not subject to the investment restrictions described in
note 16. For this reason, they are not included in Liabilities attributable to BancoPosta (note 16.7). These liabilities break
down as follows:
26.6 - Sundry financial liabilities
Item
Italian Treasury for operational risks
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
113,630
-
113,630
108,971
-
108,971
-
890,768
890,768
-
910,144
910,144
Amounts due on bills paid
Current
liabilities
Total
Amounts due on prepaid cards
-
523,565
523,565
-
432,724
432,724
National and international money transfers
-
393,740
393,740
-
361,703
361,703
Endorsed checks
-
148,052
148,052
-
168,391
168,391
Tax collection
-
91,295
91,295
-
73,845
73,845
Other
105
28,018
28,123
6,482
22,191
28,673
Total
113,735
2,075,438
2,189,173
115,453
1,968,998
2,084,451
Amounts due to the Italian Treasury for operational risks refer to advances obtained as a result of BancoPosta’s operations
and which subsequently gave rise to liabilities that are either certain or likely to be incurred. Changes in these liabilities are
as follows:
194
26.7 - Changes in amounts due to the Italian Treasury for operational risks
Note
2009
2008
108,971
New liabilities for operational
Operational risks that did not occur
10,762
(9,596)
89,111
5,430
(2,546)
[40.1]
Repayments made
Uses of provisions for disputes with staff
1,166
(27)
3,520
2,884
(5,366)
22,342
113,630
108,971
Amounts due on bills paid regard sums collected on payment of bills and yet to be allocated to the accounts of beneficiaries.
Amounts due on prepaid cards represent amounts due to Postepay and Pensione card customers who have topped up their
prepaid cards. Amounts due on national and international money transfers represent the exposure to customers for money
orders and transfers, to Moneygram for customer transactions in process and amounts due to overseas postal operators for
international money orders. Endorsed checks represent the exposure to customers for endorsed checks in circulation. Tax
collection payables represent the amount due to tax collection agents and the tax authorities for payments of tax effected by
customers.
The current portion of Other financial liabilities, totalling 20,567 thousand euros, regards cash on delivery payments collected
by SDA Express Courier SpA.
Analysis of net debt/(funds)
The Group’s net funds at 31 December 2009 and 31 December 2008 are as follows:
26.8 – Net debt/(funds)
Item
Note
related
Balance at
party
31 Dec 2009 transactions
Financial assets designated at fair value
Bonds
Shareholder loans
Bank borrowings
Other borrowings
Other
[26.1]
[23.1]
35,927,121
-
28,333,062
-
[16.7]
37,718,321
80,457
37,063,652
576,817
[9.1]
(39,312,956)
(863,856)
(27,776,456)
(10,637,554)
(35,090)
(770,719)
(101,143)
-
(32,370,179)
(1,027,673)
(19,502,208)
(11,826,929)
(13,369)
(906,736)
(102,230)
-
(39,512,159)
(6,804,803)
(38,909,191)
(5,546,358)
(1,326)
-
(234)
-
Financial assets
Investments held for sale
[16.1]
[11.1]
Net debt/(funds)
5,882,001
1,690,799
770,679
679,517
260,891
109,898
2,370,217
related
Balance at
party
679,517
1,351
701,002
[17.1]
(2,038,783)
(1,337,781)
7,544,708
2,816,018
771,187
840,235
667,870
153,025
2,296,373
840,235
824
1,661,818
-
(2,346,134)
(684,316)
-
27 - TRADE PAYABLES
27.1 - Trade payables
Item
Amounts due to suppliers
Prepayments and advances from customers
Interest payable to current account holders
Amounts due to associates
Amounts due to subsidiaries
Amounts due to joint ventures
1,467,575
208,798
91,720
9,344
7,046
5,417
1,513,683
206,684
111,953
3,301
9,496
10,396
Total
1,789,900
1,855,513
Italian suppliers
Overseas suppliers
Overseas correspondents (1)
1,305,818
14,310
147,447
1,351,883
18,856
142,944
Total
1,467,575
1,513,683
AMOUNTS DUE TO SUPPLIERS
27.2 - Amounts due to suppliers
Item
(1)
The amount due to overseas correspondents regard fees payable by the Parent Company to overseas postal operators and companies in return for postal and
telegraphic services provided.
PREPAYMENTS AND ADVANCES FROM CUSTOMERS
These items refer to amounts received from customers as prepayment for the following services to be rendered:
27.3 - Prepayments and advances from customers
Item
103,178
67,141
18,035
89,600
69,103
25,561
10,842
9,602
10,510
11,910
208,798
206,684
Prepayments from overseas correspondents
Mechanized franking
Unfranked mail
Postage-paid mailing services
Other services
Total
INTEREST PAYABLE TO CURRENT ACCOUNT HOLDERS
This refers to interest accrued on postal current accounts during the year, less the related withholding tax. The amount for
interest accrued at 31 December 2009 and payable to unconsolidated subsidiaries totals 27 thousand euros (9 thousand
euros at 31 December 2008).
196
AMOUNTS DUE TO ASSOCIATES
Amounts payable to associates, totalling 9,344 thousand euros (3,301 thousand euros at 31 December 2008) primarily
include amounts due to Docugest SpA.
AMOUNTS DUE TO SUBSIDIARIES
This item represents amounts due to unconsolidated subsidiaries, as shown in the following table:
27.4 - Amounts due to subsidiaries
Name
Docutel SpA
Poste Tributi ScpA
Poste Voice SpA
Poste Assicura SpA
2,415
1,475
1,448
1,204
504
3,493
2,270
1,018
1,067
1,648
Total
7,046
9,496
AMOUNTS DUE TO JOINT VENTURES
Amounts payable to joint ventures, totalling 5,417 thousand euros (10,396 thousand euros at 31 December 2008), include
the portion of a payable due to Italia Logistrica Srl not accounted for using proportionate consolidation.
28 - CURRENT TAX LIABILITIES
Under IAS 12 – Income taxes, IRES and IRAP credits are accounted for less the corresponding Current tax liabilities (note
14), given that they are taxes applied by the same tax authority to the same taxable entity, which has a legally enforceable
right to offset and intends to exercise this right. A breakdown is as follows:
28.1 - Current tax liabilities
Item
IRES
IRAP
Substitute tax
43,807
10,002
25,761
7,379
7,442
58,826
Total
79,570
73,647
Substitute tax refers to the remaining payment to be made in 2010, following the franking, in 2008, of off-book deductions
applied between 2004 and 2007.
29 - OTHER LIABILITIES
29.1 - Other liabilities
Current
liabilities
-
Total
Non-current
liabilities
Current
liabilities
Total
830,325
830,325
-
705,392
705,392
59,462
480,841
540,303
81,284
459,543
540,827
-
282,955
282,955
-
267,657
267,657
Amounts due to the parent
-
12,140
12,140
-
12,140
12,140
Other amounts due to joint ventures
-
-
-
-
59
59
Other amounts due to associates
6
-
6
6
-
6
7,268
147,129
154,397
7,245
127,195
134,440
Item
Non-current
liabilities
Amounts due to staff
Amounts due to social
security agencies
Other tax liabilities
Sundry payables
Accrued expenses and deferred income
from trading transactions (*)
17,965
34,447
52,412
57,714
31,333
89,047
Other liabilities
Amount payable to parent
(EC Decision of 16 July 2008)
84,701
1,787,837
1,872,538
146,249
1,603,319
1,749,568
-
-
-
-
485,572
485,572
Total
84,701
1,787,837
1,872,538
146,249
2,088,891
2,235,140
(*)
Current deferred income for 2008 adjusted in application of IFRIC 13 (note 2.3).
AMOUNTS DUE TO STAFF
These items primarily regard accrued amounts that have yet to be paid at 31 December 2009. The following table shows
a breakdown:
29.2 - Amounts due to staff
Item
Accrued vacation pay
Fourteenth month salaries
Incentives and productivity bonuses
Other amounts due to staff
87,611
245,323
358,614
138,777
107,026
240,558
235,500
122,308
Total
830,325
705,392
198
AMOUNTS DUE TO SOCIAL SECURITY AGENCIES
29.3 - Amounts due to social security agencies
Non-current
liabilities
Current
liabilities
IPOST
INPS
INAIL
Pension funds
Amounts due to the Solidarity Fund
Other agencies
56,667
2,795
-
Total
59,462
Item
Total
Non-current
liabilities
Current
liabilities
Total
330,178
43,828
2,649
70,844
18,087
15,255
330,178
43,828
59,316
70,844
20,882
15,255
59,136
22,148
-
293,986
32,143
4,640
61,011
51,349
16,414
293,986
32,143
63,776
61,011
73,497
16,414
480,841
540,303
81,284
459,543
540,827
Amounts due to IPOST regard pension and social security contributions due to the institute on behalf of the Group’s
employees, calculated on both the salaries paid as of 31 December 2009 and accrued amounts due, as reported in the item
Amounts payable to staff.
Amounts due to INPS primarily regard provisions for vested staff termination benefits to be paid into the agency’s Treasury
fund at 31 December 2009 (note 25).
Amounts due to INAIL essentially regard the Parent Company and primarily derive from charges for injury compensation
paid to employees for injuries occurring up to 31 December 1998. This amount, originally amounting to 82,633 thousand
euros, is repayable in thirty years from 31 December 1999, based on a straight-line amortisation schedule and an annual
interest rate of 2.5%.
Amounts payable to pension funds refer essentially to the Parent Company (69,579 thousand euros) and regard to sums
due to FondoPoste and other pension funds following the decision by certain employees to join a supplementary fund.
Amounts due from the Parent Company to the Solidarity Fund (set up by Ministerial Decree 178 of 1 July 2005) regard
amounts designed to cover redundancy payments and income support for employees who, having qualified for
participation, decide to take voluntary early retirement. The residual amount payable at 31 December 2009 represents the
present value of total liabilities with a face value of 71,990 thousand euros, which are expected to be progressively paid
off by 2011. During the year this payable increased due to accrued finance income of 1,763 thousand euros, whilst the
reduction reflected contributions paid and redundancy payments effected, totalling 54,378 thousand euros.
OTHER TAX LIABILITIES
29.4 - Other tax liabilities
Item
102,332
105,166
Tax due on insurance provisions
95,520
68,910
Withholding tax on postal current accounts
34,391
42,384
Withholding tax on employees’ and consultants’ salaries
Substitute tax
Stamp duty
Other taxes due
Total
667
736
9,247
12,326
40,798
38,135
282,955
267,657
Amounts due on salaries paid to employees and consultants regards withholding tax paid to the tax authorities by Group
companies in January and February 2010.
Tax due on insurance provisions regard Poste Vita SpA and are described in note 11.1.
Withholding tax due on postal current accounts refers to amounts withheld by the Parent Company on interest accrued on
customers’ current accounts.
Substitute tax represents the balance payable by Group companies on the revaluation of staff termination benefits in 2008.
Stamp duty is payable to the tax authorities by the Parent Company as duty to be paid in virtual form. The balance includes
the adjustment paid in 2009 pursuant to note 3bis of art. 13 of the Tariffs provided for by Presidential Decree 642/1972.
Other taxes due include the balance of VAT payable of 28,941 thousand euros (30,292 thousand euros at 31 December
2008).
AMOUNTS DUE TO THE PARENT
This item refers to 12,140 thousand euros due to the Ministry of the Economy and Finance for pensions paid by the
Ministry to former employees of the Parent Company for the period 1 January to 31 July 1994.
SUNDRY PAYABLES
29.5 - Sundry payables
Item
Sundry payables
attributable to BancoPosta
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
86,104
-
107,308
107,308
-
86,104
7,201
90
7,291
7,245
1,605
8,850
Other
67
39,731
39,798
-
39,486
39,486
Total
7,268
147,129
154,397
7,245
127,195
134,440
Guarantee deposits
Sundry payables attributable to BancoPosta refer to 92,379 thousand euros due to INPS for pensions paid by Poste Italiane
SpA to pensioners after their death and which are in the process of being recovered. A further 14,929 thousand euros is
due to Cassa Depositi e Prestiti as a result of amounts registered in customers’ Postal savings books and in the process
of verification.
Guarantee deposits primarily regard amounts collected from the Parent Company’s customers as a guarantee of payment
for certain services (postage-paid mailing services, the use of post office boxes, lease contracts, telegraphic service
contracts, etc.).
200
ACCRUED EXPENSES AND DEFERRED INCOME FROM TRADING TRANSACTIONS
The nature and composition of accrued expenses and deferred income is as follows:
29.6 - Accrued expenses and deferred income
Non-current
liabilities
Current
liabilities
Accrued expenses
Deferred income (*)
17,965
Total
17,965
Item
(*)
Total
Non-current
liabilities
Current
liabilities
Total
4,463
29,984
4,463
47,949
57,714
2,014
29,319
2,014
87,033
34,447
52,412
57,714
31,333
89,047
Current deferred income for 2008 adjusted in application of IFRIC 13 (note 2.3).
Deferred income primarily regards:
• 14,706 thousand euros (16,776 thousand euros at 31 December 2008) in fees on Postemat cards collected in advance
by the Parent Company;
• 11,664 thousand euros (50,813 thousand euros at 31 December 2008) in deferred income earned by Poste Vita SpA over
the duration of individual insurance policies of the Branch III type, in application of IAS 18;
• 6,616 thousand euros (including 6,301 relating to income accruing after 2010) regarding the Parent Company’s advance
collection of the rental on a thirty-year lease of a pneumatic postal machine in Rome;
• 5,996 thousand euros relating to income accruing to the Parent Company in future years as a result of the Grand Premio
BancoPosta loyalty programme, which grants award credits to customers in return for certain behaviours. As required by
IFRIC 13, recognition of the related revenue is deferred until the Company has fulfilled its obligations to deliver awards
to customers or, if the award credits must be used within a limited period of time, until the credits are no longer valid.
30 - REVENUES FROM SALES AND SERVICES
Revenues from sales and services of 10,343,768 thousand euros break down as follows:
30.1 - Revenues from sales and services
Item
Postal Services
Financial Services (*)
Other sales of goods and services
Total
(*)
Balance for 2008 adjusted in application of IFRIC 13 (note 2.3).
2009
2008
5,209,973
4,796,021
337,774
5,482,895
4,538,891
349,939
10,343,768
10,371,725
POSTAL SERVICES
Revenues from Postal Services break down as follows:
30.2 - Postal Services
Item
2009
2008
Unfranked mail
Mechanized franking by third parties and at post offices
Stamps
Express parcel and express courier services
Integrated services
Overseas mail and parcels
Telegrams and online services
Innovative services
Logistics services
Other postal services
1,656,761
1,300,834
502,226
278,515
256,227
168,087
121,734
69,766
59,874
25,924
88,181
1,810,274
1,337,405
563,366
294,226
201,469
190,956
138,637
75,280
71,882
15,980
77,379
Total market revenues
4,528,129
4,776,854
371,830
310,014
363,646
342,395
5,209,973
5,482,895
Universal Service subsidies
Publisher and electoral tariff subsidies
(1)
Total
(1)
Subsidies to compensate for tariffs discounted in accordance with the law
Unfranked mail includes revenues from the mailing of correspondence by large customers from certain network centres
and enabled post offices, including mailings carried out under the Bulk Mail formula.
Mechanized franking by third parties or at post offices, which refers entirely the Parent Company, regards revenues from
the mailing of correspondence franked directly by customers or at post offices using a franking machine.
Stamp sales refer to the sale of postage stamps through post offices and authorised outlets and sales of stamps used for
franking on credit.
Express parcel and express courier services principally regard services provided by the subsidiary, SDA Express Courier
SpA.
Integrated services, which refer entirely to the Poste Italiane SpA, regard the delivery of administrative process and fines,
amounting to 225,324 thousand euros, the integrated notification service for legal process carried out on behalf of UNEP
(Notifications, Enforcements and Complaints Offices), totalling 28,056 thousand euros, and revenues deriving from the
agreement with the tax authorities regarding bulk and registered services, amounting to 2,847 thousand euros.
Postage-paid mailing services, which refer entirely to the Parent Company, regard revenues from the delivery of periodicals
and mail-order goods on behalf of publishers who benefit from preferential rates, as provided for by Law 46 of 27 February
2004, which converted Legislative Decree 353 of 24 December 2003.
Overseas mail and parcels, which refer to Poste Italiane SpA, relate to revenues from the international exchange of such
items.
Telegrams and online services primarily regard the telegram service provided by the Parent Company by phone or at post
offices, and amounting to 42,417 thousand euros and 13,711 thousand euros, respectively.
Revenues from innovative services, referring to the Postel Group, include 23,212 thousand euros from the door-to-door
service, 16,655 thousand euros from direct mailing, 17,676 thousand euros from commercial printing and 2,331 thousand
euros from other “added value” services.
Universal Service Obligation subsidies regard the subsidies paid by the Ministry of the Economy and Finance to cover the
202
costs of fulfilling the Universal Service Obligation (USO). Subsidies of 371,830 thousand euros are, whilst awaiting renewal
of the Contratto di Programma (Planning Agreement) for the three-year period 2009-2011, estimated on the basis of the
best available information from previous Contratti di Programma (Planning Agreements) and Interministerial Committee for
Economic Planning (CIPE) “Guidelines for Regulation of the Postal Sector”.
Publisher and electoral tariff subsidies include:
• 242,573 thousand euros representing the amounts due from the Publishing department of the Cabinet Office to cover
the cost of the preferential rates offered to publishers and non-profit organisations. The amount due was calculated on
the basis of the tariffs established in the Ministry of Communications (now the Ministry for Economic Development)
Decree of 23 November 2002 and governed by Law 46 of 27 February 2004. With regard to the financial year ended 31
December 2009, the subsidies to cover the discounts granted by the Parent Company have not been allocated in the
Cabinet Office’s budget;
• 67,441 thousand euros in amounts paid by the State to cover reductions and preferential prices granted to election
candidates under Law 515/93. This amount is also not covered by the MEF’s budget.
FINANCIAL SERVICES
Revenues from Financial Services, which regard the Parent Company, break down as follows:
30.3 - Financial Services
Item
2009
2008
Fees for collection of postal savings deposits
Income from investment of postal current account deposits
Commissions on bills processed
Other revenues from current account services (*)
Income from delegated services
Distribution of loan products
Commissions on credit certificates
Money transfers
Fees for issue and use of prepaid cards
Securities custody
Other financial products and services
1,600,000
1,319,900
622,876
534,840
202,442
165,169
158,431
78,444
58,768
24,496
30,655
1,364,548
1,383,380
611,135
501,845
189,516
60,209
241,219
81,919
49,132
26,680
29,308
Total
4,796,021
4,538,891
(*)
Fees for the collection of savings deposits regard payment for managing, issuing and redeeming Postal Savings Certificates
and payments into and withdrawals from Posta Savings books. These services are provided by the Parent Company on
behalf of Cassa Depositi e Prestiti. 1,600,000 thousand euros of the accrued amount for 2009 was determined in relation
to the achievement of targets for savings deposits set out in the agreement entered into on 30 July 2009. This agreement
expired on 31 December 2009 and a new agreement, governing the provision of this service in 2010, was signed on 10
March 2010.
Income from the investment of postal current account deposits breaks down as follows:
30.4 - Income from the investment of postal current account deposits
Item
Income from investments in securities
Interest income on HTM securities
Interest income on AFS financial assets
Interest income on securities held for trading
Interest income on asset swaps of AFS financial assets
Income from deposits held with the MEF
Remuneration of current account deposits (deposited with the MEF)
Differentials on hedging derivatives
Net remuneration of Group’s own liquidity recognised in finance income and costs
Total
2009
2008
1,112,073
516,695
543,453
1,825
50,100
214,296
214,296
(6,469)
1,319,900
1,052,569
510,292
528,412
936
12,929
355,564
355,564
(24,753)
1,383,380
Interest income on securities derives from the investment of deposits paid into postal current accounts by private customers.
The total includes the impact of the cash flow hedges described in note 16.4.
Remuneration of postal current account deposits represents accrued interest for the year on deposits held with the MEF.
The floating rate used to determine the remuneration has been calculated in accordance with the Agreement with the MEF
approved by specific Ministerial Decree on 7 April 2009 (note 16).
Net remuneration of the Group’s own liquidity deposited in postal current accounts
This item is shown separately in Finance income and costs (note 41).
Other revenues from current account services primarily regard current account charges (189,143 thousand euros), fees on
amounts collected and on statements of account sent to large customers (138,256 thousand euros), annual fees on debit
cards (62,623 thousand euros) and on debit card transactions (69,120 thousand euros).
Income from delegated services primarily regards amounts received by the Parent Company for the payment of pensions
disbursed by INPS (106,614 thousand euros) and INPDAP (15,789 thousand euros), and for treasury services carried out
by the Company in 2009 on the basis of the Agreement between Poste Italiane and the MEF (63,912 thousand euros).
Revenues from the distribution of loan products by the Parent Company regard commissions on the sale of personal loans
and mortgages provided by third parties (165,169 thousand euros).
Commissions on credit certificates primarily regard income from the placement of bonds issued by leading credit
institutions (150,557 thousand euros) and from government securities (7,874 thousand euros).
Revenues from money transfers primarily regard commissions collected on national money orders (56,010 thousand
euros), Moneygram transfers (15,844 thousand euros) and Eurogiros (6,142 thousand euros).
Revenues from other financial products and services primarily include revenues from the tax collection service (5,300
thousand euros).
OTHER SALES OF GOODS AND SERVICES
This relates to income from ordinary activities that is not directly attributable to the specific Postal, Financial and Insurance
segments, to which it is allocated for the purposes of segment reporting in accordance with the relevant accounting
standards. The main components are described below:
• 92,337 thousand euros (30,903 thousand euros in 2008) generated by PosteMobile SpA, primarily from the provision of
mobile telecommunications services;
• 68,478 thousand euros earned by the Parent Company (67,073 thousand euros in 2008), including fees received for
collecting applications for residence permits and other permits (25,876 thousand euros), income from ancillary franking and
packaging services (10,491 thousand euros) and income from call centre services (5,462 thousand euros);
204
• revenues from the sale of products via the “shop-in-shop” channel or by catalogue and mail order, primarily by the
subsidiary, PosteShop SpA, amounting to 58,582 thousand euros (65,885 thousand euros in 2008);
• 28,999 thousand euros generated by Poste Link Scrl from the supply of multi-channel Contact Centre solutions for the
provision of information and services primarily on behalf of INPS (National Social Insurance Institute) and INAIL (National
Insurance Institute for Industrial Accidents);
• 28,879 thousand euros (39,660 thousand euros in 2008) from collective asset management carried out by BancoPosta
Fondi SGR, consisting primarily of management fees of 25,253 thousand euros and subscription and redemption fees of
664 thousand euros;
• 26,098 thousand euros (32,996 thousand euros in 2008) in revenues generated by Mistral Air Srl, primarily from the
supply of air transport services;
• 26,001 thousand euros (87,046 thousand euros in 2008) primarily from property sales carried out by EGI SpA in 2009.
31 - EARNED PREMIUMS
31.1 - Earned premiums
Item
2009
2008
Earned premiums
Life Branch I
Life Branch III
Life Branch V
Non-life insurance
Other income from insurance services
7,091,501
6,128,999
892,549
67,151
2,802
20,903
5,523,308
4,006,648
1,515,474
1
1,185
11,677
Total
7,112,404
5,534,985
2009
2008
1,341,274
174,307
844,500
322,467
339,478
211,014
120,386
8,078
968,110
781,872
186,238
776,868
670,025
106,843
72,638
72,638
-
Change in fair value of financial liabilities
-
607,314
Finance income from forward purchases
Fair value gains
Realised gains
7,521
7,521
1,320
463
857
41,475
2,431,018
63,479
1,788,459
32 - OTHER INCOME FROM FINANCIAL
AND INSURANCE ACTIVITIES
32.1 - Other income from financial and insurance activities
Item
Income from financial instruments at fair value through profit or loss
Interest
Fair value gains
Realised gains
Income from available-for-sale financial assets
Interest
Realised gains
Income from held-to-maturity investments
Realised gains
Other income
Total
33 - OTHER OPERATING INCOME
This item primarily regards the following:
33.1 - Other operating income
Item
2009
2008
62,061
11,335
36,800
26,427
4,606
3,177
612
65,623
35,189
11,749
37,673
20,822
10,853
3,029
914
37,772
210,641
158,001
2009
2008
Gains on disposal of operating property and land
Gains on disposal of investment property
Gains on disposal of other operating assets
40,378
7,851
13,832
22,942
9,134
3,113
Total
62,061
35,189
Gains on disposals
Lease rentals
Increases to estimates for previous years
Recovery of contract expenses and other recoveries
Recovery of cost of seconded staff
Invalidated money orders
Grants related to income
Other income and sundry revenues
Total
GAINS ON DISPOSALS
33.2 - Gains on disposals
Item
For the purposes of reconciliation with the statement of cash flows, in 2009 the net gains in question amount to 60,326 thousand euros, after losses of 1,735
thousand euros (note 40). In 2008, net gains, after losses of 5,985 thousand euros and non-recurring realised gains from the sale of investments, totalling
4,000 thousand euros, amounted to 33,204 thousand euros.
LEASE RENTALS
33.3 - Lease rentals
Item
2009
2008
Rental income from investment property
Rental income on commercial property
Recovery of expenses, transaction costs and other income
4,615
3,688
3,032
4,971
3,402
3,376
11,335
11,749
Total
Lease rentals regard the management of properties owned by the Parent Company, which is held to be of a residual nature
and separate from the ordinary activities of the subsidiary, EGI SpA. Under the relevant lease agreements, tenants usually
have the right to break off the lease with six months notice. Given the resulting lack of certainty, the expected revenue
flows from these leases are not referred to in these notes. No significant extraordinary maintenance costs were transferred
to tenants via increases in rents.
206
OTHER INCOME AND SUNDRY REVENUES
This item includes, among other items, income from the settlement of disputes between the Parent Company and third
parties. A large proportion of this item for 2009 regards this type of income.
34 - COST OF GOODS AND SERVICES
34.1 - Cost of goods and services
Item
2009
2008
Services
Lease expense
Raw, ancillary and consumable materials and goods for resale
Interest expense paid to current account holders
1,876,838
337,120
210,492
125,736
1,869,073
331,212
236,005
152,706
Total
2,550,186
2,588,996
2009
2008
530,970
227,407
163,045
161,008
144,761
128,385
91,932
82,333
77,848
75,560
56,107
45,761
39,078
20,698
20,105
8,422
1,368
1,355
695
578,774
231,950
123,087
147,438
105,315
129,316
88,992
86,787
83,315
88,342
63,395
37,812
48,120
21,264
18,325
10,923
2,111
1,401
2,406
1,876,838
1,869,073
(*)
(*)
SERVICES
34.2 - Services
Item
Transport of mail, parcels and forms
Routine maintenance and technical assistance
Personnel services
Outsourcing fees and other external service charges (*)
Telecommunications and data transmission (**)
Energy and water
Transport of cash
Mail, telegraph and telex
Cleaning, waste disposal and security
Printing and enveloping services
Consultants’ fees and legal expenses
Credit and debit card fees and charges
Advertising and promotions
Agents’ commissions and other
Insurance premiums
Securities custody fees
Fees payable for asset management
Remuneration of Statutory Auditors
Other
Total
(*)
(**)
This item includes 51,569 thousand euros regarding the cost of providing mobile telecommunications services to PosteMobile SpA’s
customers (16,784 thousand euros in 2008).
Details of the remuneration paid to Statutory Auditors are provided below:
34.3 - Remuneration of Statutory Auditors
Item
2009
2008
Remuneration
Expenses
1,175
180
1,175
226
Total
1,355
1,401
2009
2008
LEASE EXPENSE
Lease expense breaks down as follows:
34.4 - Lease expense
Item
Property rentals and ancillary costs
179,531
171,108
Vehicle leases
76,070
73,912
Equipment hire and software licenses
48,360
46,563
Other lease expense
33,159
39,629
337,120
331,212
Total
The cost of leasing operating properties almost entirely regards the buildings from which the Group operates (post offices,
Delivery Logistics Centres and Sorting Centres). Under the relevant lease agreements, rents are increased annually on the
basis of the price index published by the National Office of Statistics (ISTAT). Lease terms are generally six years,
renewable for a further six. Renewal is assured via the clause stating that the lessor "waives the option of refusing renewal
on expiry of the first term", by which the lessor, once the agreement has been signed, cannot refuse to renew the lease,
except in cases of force majeure. Moreover, the companies, in accordance with the standard contract form, have the right
to withdraw from the contract at any time, giving six months notice.
208
RAW, ANCILLARY AND CONSUMABLE MATERIALS AND GOODS FOR RESALE
34.5 - Raw, ancillary and consumable materials and goods for resale
Item
Consumables and goods for resale
Fuels and lubricants
Printing of postage and revenue stamps
Printed matter, stationery and advertising material
SIM cards and scratch cards
Movement in inventories of work in progress, semi-finished
and finished goods and goods for resale
Movement in inventories of raw, ancillary and consumable materials
Other
Note
2009
2008
112,914
53,049
20,457
21,429
1,728
122,501
66,610
23,572
22,274
1,427
1,166
(282)
31
(748)
(880)
1,249
210,492
236,005
[12.1]
[12.1]
Total
INTEREST EXPENSE PAID TO CURRENT ACCOUNT HOLDERS
The rate paid to retail customers was 0.50% until 31 May 2009 and 0.25% from 1 June 2009 (0.50% throughout 2008).
35 - CHANGE IN TECHNICAL PROVISIONS FOR INSURANCE BUSINESS
AND OTHER CLAIMS EXPENSES
35.1 - Change in technical provisions for insurance business and other claims expenses
Item
2009
2008
Claims paid
Change in outstanding claims provisions
Change in mathematical provisions
Change in other technical provisions
Change in technical provisions where investment risk is transferred to policyholders
Use of provisions for non-recurring charges deriving from conversion of Branch III policies
Claims expenses and Change in other provisions – Non-life
1,728,124
87,096
6,023,924
155,220
697,313
(65,000)
(359)
1,970,560
(3,088)
2,795,299
(238,802)
656,340
4
Total
8,626,318
5,180,313
The change in technical provisions for insurance business and other claims expenses refers to:
• claims paid, policies redeemed and the related expenses incurred by Poste Vita, totalling 1,728,124 thousand euros;
• the change in mathematical provisions, totalling 6,023,924 thousand euros, reflecting increased obligations to
policyholders;
• the change in technical provisions where investment risk is transferred to policyholders (so-called class D), totalling
697,313 thousand euros.
36 - OTHER EXPENSES FROM FINANCIAL
AND INSURANCE ACTIVITIES
36.1 - Other expenses from financial and insurance activities
Item
Expenses deriving from financial instruments at fair value through profit or loss
Fair value losses
Realised losses
Expenses deriving from available-for-sale financial assets
Impairments
Realised losses
Realised losses on held-to-maturity investments
Change in fair value of financial liabilities
Finance costs on forward purchases
Fair value losses
Realised losses
Other expenses
Total
2009
2008
115,818
26,920
88,898
1,543,904
1,504,784
39,120
12,850
12,850
87,201
54,276
32,925
-
42
166,596
-
-
4,215
3,800
415
8,136
55,376
303,400
1,690,738
37 - STAFF COSTS
Staff costs include the cost of staff seconded to other organisations. The recovery of such expenses is posted to Other
operating income. Staff costs break down as follows:
37.1 - Staff costs
Item
Note
2009
2008
Wages and salaries
Social security contributions
Provisions for staff termination benefits: current service cost
[25.1]
Provisions for staff termination benefits: supplementary pension funds and INPS
Agency staff
Remuneration and expenses paid to Directors
Redundancy payments
Net provisions for disputes with staff
[24.2]
[24.2]
Other staff costs/(cost recoveries)
Total costs
Income from fixed-term contracts settlement of 10 July 2008
4,379,184
1,213,134
399
273,246
7,390
3,630
170,081
198,074
115,000
(16,775)
6,343,363
(121,007)
4,377,675
1,106,975
430
258,622
17,063
2,935
54,747
431,428
(4,664)
6,245,211
(203,104)
Total
6,222,356
6,042,107
210
Details of the remuneration paid to Directors are provided below:
37.2 - Remuneration and expenses paid to Directors
Item
2009
2008
Remuneration
3,456
2,707
174
228
3,630
2,935
Expenses
Total
From 1 January 2009, following the entry into force of art. 20 of Law 133/2008, Poste Italiane SpA is required to pay
contributions to INPS to cover maternity and involuntary unemployment benefits, which are not provided by IPOST. This is
the reason for the increase in the amount payable to INPS at 31 December 2009.
Cost items relating to staff termination benefits are described in note 25.
Net provisions for disputes with staff and those for restructuring charges are described in note 24.2.
Cost recoveries relating to the Parent Company primarily regard revised estimates for previous years.
Income from the fixed-term contracts settlement of 10 July 2008 refers to further acceptances during early 2009, following
the agreement reached between Poste Italiane SpA and the labour unions regarding the re-employment by court order of
staff previously employed on fixed-term contracts. The agreement has resulted in conversion of the previous temporary
contracts to permanent arrangements for approximately 3,500 staff who, at 10 July 2008, were employed by the Company
by virtue of a judicial ruling that had not yet become final. This was effected by means of individual agreements, under
which each member of staff waived any legal or financial claim deriving from the sentence requiring their re-employment,
and approximately 2,900 staff agreed to return any amounts paid by the Company for periods during which they did not
work, and which the Company had charged to the income statement in previous years. These amounts, which are to be
repaid in variable interest-free instalments by 2029, total approximately 142 million euros, representing gross salaries,
contributions attributable to the Company and accrued termination benefits. Compared with the above face value of the
amounts to be returned, the amount of 121,007 thousand euros recognised in the income statement for the year
represents the present value of income deriving from the settlement. This present value was calculated on the basis of
the expected cash flows deriving from collection of the amounts due under the individual agreements (based on the
forward yield curve for government securities at 30 June 2009), and those deriving from amounts due from IPOST, set out
in a specific agreement with the social security institute dated 23 December 2009 (based on the forward yield curve for
government securities at 31 December 2009).
The following table shows the Group’s average and year-end headcounts by category:
37.3 - Headcount
Average number
Item
Year-end number
2009
2008
31 Dec 2009
31 Dec 2008
Senior managers
Middle managers
Operating units
General services
741
14,703
129,616
6,206
756
14,148
130,149
5,326
714
14,539
126,705
6,164
744
14,477
129,517
6,248
Total permanent staff (*)
151,266
150,379
148,122
150,986
(*)
Figures expressed in full-time equivalent terms.
Taking account of staff on flexible contracts, the average number of full-time equivalent staff in 2009 was 154,197 (156,467
in 2008).
38 - DEPRECIATION, AMORTISATION AND IMPAIRMENTS
38.1 - Depreciation, amortisation and impairments
Item
2009
2008
377,505
94,169
154,790
17,649
20,343
90,554
13,445
376,907
92,221
152,997
20,973
25,527
85,189
(51)
8,710
(1,817)
9,211
(6,092)
Amortisation of intangible assets
Industrial patents, intellectual property rights, concessions, licences, trademarks and similar rights
Other
Impairment of goodwill/consolidation differences
156,322
152,633
3,689
950
158,765
153,519
5,246
1,212
Total
555,115
539,952
Note
2009
2008
[5]
[7]
4,210
26,128
2,448
41,769
30,338
44,217
Property, plant and machinery
Operating properties
Plant and machinery
Industrial and commercial equipment
Other assets
Impairments/recoveries/adjustments of property, plant and equipment
Depreciation of investment property
Impairments/recoveries/adjustments of investment property
39 - CAPITALISED COSTS AND EXPENSES
39.1 - Capitalised costs and expenses
Item
Intangible assets
Total
212
40 - OTHER OPERATING COSTS
Other operating costs break down as follows:
40.1 - Other operating costs
Item
Note
2009
2008
Provisions and losses on doubtful debts (uses of provisions)
Provisions for receivables due from customers
Provisions for receivables due from parent
Provisions for sundry receivables
Losses on receivables (*)
[13.3]
[13.5]
[15.2]
31,692
(16,577)
23,211
20,181
4,877
114,377
56,832
46,145
11,395
5
Occurrence of operational risks
Robberies during the year
Reversal of BancoPosta assets, net of recoveries
Other operating losses of BancoPosta
[26.5]
[26.7]
29,875
9,964
1,166
18,745
32,134
10,997
2,884
18,253
Net provisions for liabilities and charges made/(used)
for disputes with third parties
for non-recurring charges (**)
[24.2]
116,992
11,456
133,636
45,990
[24.2]
[24.2]
48,968
56,568
72,936
14,710
1,735
43,006
19,760
28,240
5,985
46,088
21,641
30,357
271,300
384,218
for other liabilities and charges
Losses
Municipal property tax, urban waste tax and other taxes and duties (***)
Revised estimates and assessments for previous years
Other recurring costs
Total
Including 4,431 thousand euros described in note 13.2.
(***)
Including 3,207 thousand euros in provisions for tax and social security charges (zero in 2008). Net provisions for liabilities and charges thus amount to
120,199 thousand euros (133,636 thousand euros in 2008).
(*)
(**)
41 - FINANCE INCOME AND COSTS
FINANCE INCOME
41.1 - Finance income
Item
2009
2008
32,879
67,580
32,223
37,435
Realised gains
502
28,517
Dividends
154
1,628
11,319
1,116
Interest/Other income (1)
Non-recurring income from investments
(1)
-
4,000
(1)
128,364
219,922
Interest from parent (2)
43,801
69,795
Other finance income
Remuneration of Poste Italiane SpA’s liquidity
Interest on bank current accounts
Interest on term bank accounts
Finance income on discounted receivables (3)
Overdue interest
Impairment of amounts due as overdue interest
Income from subsidiaries
Other
Foreign exchange gains
Revaluations
Total
6,469
25,440
15,490
32,890
2,467
26,045
56,217
57,817
2,967
3,030
(2,861)
(2,939)
77
78
3,737
7,766
4,784
6,516
8
3,449
177,354
302,583
Income from financial assets regards assets other than those in which deposits collected by BancoPosta and/or the insurance company, Poste Vita SpA, are
invested in.
(1)
For the purposes of reconciliation with the statement of cash flows, for 2009 these items amount to 171,906 thousand euros (258,473 thousand euros in
2008).
(2)
Interest income from the parent includes:
• 43,423 thousand euros as interest payable under Law 887/84, to cover the accrued portion of the interest due on the loans issued by Cassa Depositi e
Prestiti (described in note 9.2), including 11,665 thousand euros accrued in 2009 and 31,758 thousand euros accrued in previous years;
• 378 thousand euros in interest on the account held at the Italian Treasury.
(3)
Finance income on discounted receivables regards: 31,772 thousand euros in accrued interest on the amount due from the MEF (note 9.2), 14,967
thousand euros in interest on amounts due for the publisher tariff subsidies described in note 12.2, and 9,478 thousand euros in interest on amounts due
from staff under the fixed-term contracts settlements of 2006 and 2008 (note 11.1).
214
FINANCE COSTS
41.2 - Finance costs
Item
Note
Finance costs on financial liabilities
on bonds
on shareholder loans
on bank borrowings
on other borrowings
paid to the parent
on derivative financial instruments
on amounts payable to subsidiaries
Finance costs on sundry financial assets
Realised losses on available-for-sale financial assets
Impairments of available-for-sale financial assets
Fair value losses on financial instruments
at fair value through profit or loss
Realised losses on financial instruments
at fair value through profit or loss
2009
2008
94,777
38,867
32,712
119,660
38,958
12,752
5,599
228
4,612
7
38,746
32,766
8,692
315
146
37
10,865
65
-
20,334
907
9,205
2
5,269
10,798
4,953
Finance costs on provisions for staff termination benefits
[25.1]
69,758
74,886
Finance costs on provisions for liabilities
[24.2]
1,866
2,525
Finance costs on discounted amounts payable to Solidarity Fund
1,763
4,442
Interest on amounts payable under EC Decision of 16 July 2008
-
19,673
6,283
6,365
3,185
5,409
188,497
253,294
Other finance costs
Foreign exchange losses
(1)
Total
Costs on financial instruments regards liabilities other than deposits and assets other than those in which deposits collected by BancoPosta and/or the
insurance company, Poste Vita SpA, are invested in.
(1)
For the purposes of reconciliation with the statement of cash flows, for 2009 finance costs, before foreign exchange losses, amount to 185,312 thousand
euros (247,885 thousand euros in 2008).
42 - INCOME TAX EXPENSE
42.1 - Income tax expense
Item
2009
2008
Current tax expense
Substitute tax
Deferred tax assets
717,800
59,105
4,761
(96,093)
746,017
83,010
(82,640)
(109,633)
Total
685,573
636,754
In 2009 the Parent Company and certain subsidiaries exercised the option granted by art. 15 of Legislative Decree
185/2008, converted into Law 2/2009, and realigned the tax bases of assets and liabilities with their corresponding
statutory amounts. This realignment regarded:
• differences arising on first-time application of IAS/IFRS in the financial statements for the year ended 31 December 2005,
which were rendered deductible by the payment of substitute tax of 49,499 thousand euros; following this transaction,
the deferred tax that gave rise to a component of income, totalling 91,657 thousand euros, was recalculated;
• differences between the carrying amounts of assets and liabilities and their tax bases arising after adoption of IAS/IFRS
(at 31 December 2008 amounting to a taxable amount of approximately 253 million euros), which became deductible in
5 equal instalments from 2009 and in the four subsequent years, with an expected saving of current tax expense of
approximately 70 million euros for the Parent Company alone; the exercise of this option did not have any effect on the
income statement, in that the reduction in current tax expense is offset by expenses deriving from the elimination of the
corresponding deferred tax assets recognised in the years from 2005 to 2008.
Postel SpA also exercised the option, granted by the same legislation, of franking non-deductible goodwill arising from
extraordinary transactions that took place in previous years, paying substitute tax of 9,606 thousand euros and, at the same
time, recognising deferred tax assets of 18,851 thousand euros.
Finally, as a result of art. 6 of the Law Decree of 29 November 2008, converted into Law 2 of 28 January 2009, following
the decision to claim a rebate of the non-deductible 10% of IRAP paid in 2007, in 2009 the related credit of 10,742 thousand
euros has been recognised in the income statement for 2009 (note 14).
The positive impact of the above non-recurring events was, therefore, 62,145 thousand euros.
43 - RELATED PARTY TRANSACTIONS
IMPACT OF RELATED PARTY TRANSACTIONS ON THE FINANCIAL POSITION AND
RESULTS OF OPERATIONS
The impact of related party transactions on the financial position and results of operations is shown in the following tables
43.1 and 43.4.
216
43.1 - Impact of related party transactions on the financial position at 31 December 2009
Financial
assets
Assets
attrib.to
BancoPosta
Trade
receivables
Other
assets
Financial
liabilities
Liabilities
attrib. to
BancoPosta
Trade
payables
Other
liabilities
201
-
-
144
982
1,535
364
1,568
98
7
15
27
-
1,351
-
51,204
1,824
7,518
146
179
5
1
2,415
518
1,476
1,454
-
1,018
-
2,154
-
-
3
5,417
-
-
-
2
233
58
2,456
-
-
16
-
3,619
5,391
334
6
Direct relations
Agencies and other local offices
Former government procurement department
769,500
769,500
-
6,804,803
6,804,803
-
1,287,495
1,201,427
86,068
-
6,540
6,540
-
-
(16,170)
(16,170)
-
172,319
172,319
12,140
12,140
-
Cassa Depositi e Prestiti Group
CONI Servizi
Consap SpA
Consip SpA
Enav SpA
EUR SpA
Fondoposte Pension Fund
Anas Group
Enel Group
Eni Group
Equitalia Group
Ferrovie dello Stato Group
Finmeccanica Group
Fintecna Group
Invitalia Group
Istituto Poligrafico Zecca dello Stato Group
RAI Group
Sogei SpA
Sviluppo Mercato Fondi Pensione SpA
Provisions for doubtful debts due from external
related parties
101,143
-
-
938,601
69
306
5
308
67
43,969
8,436
33,153
652
69
16
18
213
17
19
1
-
679,517
-
86,936
-
21
41
882
3
705
17,103
953
11,225
62,644
183
1,034
2
-
14,929
60,561
-
-
-
(108,090)
(5,071)
-
-
-
-
Total
871,862
6,804,803
2,214,918
1,518
680,868
80,457
288,949
87,636
Name
Subsidiaries
Docutel SpA
Poste Assicura SpA
Poste Tributi ScpA
Poste Voice SpA
Joint ventures
Associates
Consorzio ANAC
Docugest SpA
Uptime SpA
Related parties external to the Group
At 31 December 2009 Provisions for liabilities and charges made to cover probable liabilities arising from transactions with
related parties external to the Group and regarding trading relations amount to 46,974 thousand euros (122,833 thousand
Name
Financial
assets
Assets
attrib.to
BancoPosta
Trade
receivables
Other
assets
Financial
liabilities
Liabilities
attrib. to
BancoPosta
Trade
payables
Other
liabilities
-
Subsidiaries
Consorzio Poste Welfare
Docutel SpA
Poste Assicura SpA
Poste Tributi ScpA
Poste Voice SpA
-
-
246
983
25
1,831
444
1,029
88
62
11
-
20
804
-
5
1,489
1,203
1
33
64
1,543
1,067
4
1
3,493
1,649
2,270
1,021
-
1,187
-
-
3,008
41
-
-
3
-
6,188
4,208
59
-
-
-
435
2,669
-
-
20
-
2,632
669
6
Direct relations
905,549
905,549
-
5,546,358
5,546,358
-
1,034,104
957,534
76,570
-
7,768
7,768
-
-
(120,194)
(120,194)
-
158,359
158,359
497,712
497,712
-
CONI Servizi
Consap SpA
Consip SpA
Enav SpA
EUR SpA
Agenzia Nazionale Attrazione Investimenti
e Sviluppo Impresa Group
Alitalia Group
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
Gestore Servizi Elettrici Group
RAI Group
Sogei Group
Provisions for doubtful debts due from external
related parties
102,230
-
-
755,381
69
1
880
176
-
-
840,235
-
692,650
-
19
2,520
-
53,287
-
-
24
954
48
49,725
12,263
18,514
544
36
26
1
72
15
203
2
-
-
-
14,196
1,787
19,212
921
8,602
84,228
1,464
1
-
-
-
-
(84,542)
(6,298)
-
-
-
-
1,008,966
5,546,358
1,799,295
1,543
841,059
576,817
314,511
551,064
Joint ventures
Uptime SpA
Associates
Docugest SpA
Consorzio ANAC
Total
218
43.3 - Impact of related party transactions on the results of operations for 2009
2009
Revenue
Costs
Capital expenditure
Current expenditure
Other
Staff operating
costs
costs
Revenues
Other
operating
income
Finance
income
PPE
Intangible
assets
Goods and
services
20
16
19
36
63
502
107
-
73
1
1,868
614
1,326
-
1
58
-
-
1,243
7
1
4,400
1,417
81
2,417
-
-
1,404
-
7
119
2,259
660
18
-
-
10,517
-
-
-
1
237
-
31
6
-
-
-
5,299
10,981
-
-
-
819,269
712,907
106,362
-
7,272
6 ,042
1,230
-
85,762
85,762
-
-
-
-
-
25,200
22,764
2,436
-
228
228
-
Cinecittà Holding SpA
CONI Servizi
Consap SpA
Consip SpA
Enav SpA
EUR SpA
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
Invitalia Group
RAI Group
SACE Group
Italia Lavoro Group
RAI Group
SACE Group
Sogei Group
Sogin Group
Sicot Srl
1,600,253
7
1,008
124
837
228
3
734
140,231
29,174
82,538
833
279
301
171
43
2,060
94
22
9,398
39
2
63
9
60
278
13
-
2,409
-
38,012
-
8,695
18
91
2,842
2,066
42,083
678
6,849
56,045
11
15,188
17
-
29,022
-
871
189
15
2
-
32,712
408
-
Total
2 ,690,980
12,202
88,248
38,012
8,713
162,233
29,022
27,681
33,474
Name
Finance
costs
Subsidiaries
Chronopost International Italia SpA - in liquidation
Docutel SpA
Poste Assicura SpA
Poste Tributi ScpA
Poste Voice SpA
Joint ventures
Associates
Consorzio ANAC
Docugest SpA
Uptime SpA
Direct relations
related parties external to the Group and regarding trading relations amount to 3,570 thousand euros (67,466 thousand
43.4 - Impact of related party transactions on the results of operations for 2008
2008
Revenue
Costs
Capital expenditure
Current expenditure
Other
Staff operating
costs
costs
Revenues
Other
operating
income
Finance
income
PPE
Intangible
assets
Goods and
services
9
300
22
28
62
310
100
-
61
5
1
1,997
621
1,360
-
38
-
-
2,088
5
1
4,809
1,033
1,811
-
-
1
2,011
-
1
36
199
1,129
-
191
56
40
-
-
-
4,057
13,226
-
-
2
-
134
52
-
-
-
5,263
-
-
-
915,485
839,827
75,658
-
366
366
-
119,868
119,868
-
-
-
-
-
48,109
46,010
2,099
-
19,988
19,988
-
CONI Servizi
Consap SpA
Consip SpA
Enav SpA
EUR SpA
Alitalia Group
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
Italia Lavoro Group
RAI Group
SACE Group
Sogei Group
Sicot Srl
1,364,729
6
1,248
129
910
231
84
58
35
2,230
-
-
54
-
87
3,054
-
18,411
-
38,746
-
86
616
603
148,077
33,894
55,531
619
231
343
119
4,826
11
17,692
80
421
56
11
13
-
89
-
77,524
-
9,395
48
26,936
6,381
47,817
677
3,313
53,752
17,711
24
-
65
-
26
40
156
-
208
-
Total
2,548,132
4,816
122,265
77,524
9,497
192,045
18,476
50,343
59,180
Name
Finance
costs
Subsidiaries
Chronopost International Italia SpA - in liquidation
Docutel SpA
Poste Assicura SpA
Poste Tributi ScpA
Poste Voice SpA
Joint ventures
Uptime SpA
Associates
Docugest SpA
Direct relations
The nature of the principal transactions between the Parent Company and related parties external to the Group is
summarised below.
220
• Amounts received from the MEF primarily refer to payment for carrying out the Universal Service Obligation (USO), the
management of postal current accounts, as reimbursement for electoral tariff reductions and subsidies, and as payment
for delegated services, integrated e-mail services, the franking of mail on credit, and for collection of tax returns.
• Amounts received from CDP SpA primarily refer to payment for the collection of postal savings deposits.
• Amounts received from the Enel Group primarily refer to payment bulk mail shipments, unfranked mail, franking of mail
on credit and postage paid mailing services, etc. The costs incurred primarily regard the supply of electricity and gas.
• Amounts received from the Equitalia Group primarily refer to payment for the integrated notification service and for
unfranked mail. The costs incurred primarily regard electronic transmission of tax collection data.
• Amounts received from the ENI Group primarily refer to payment for bulk mail shipments, etc. The costs incurred
primarily regard the supply of fuel for motorcycles and vehicles and the supply of gas.
• Purchases from the Finmeccanica Group primarily refer to the supply, by Elsag Datamat SpA, of equipment, maintenance
and technical assistance for mechanised sorting equipment, and systems and IT assistance regarding the creation of
document storage facilities, specialist consulting and software maintenance, and the supply of software licences and of
hardware.
KEY MANAGEMENT PERSONNEL
Key management personnel refers to Directors of the Parent Company, Poste Italiane SpA’s first-line managers and senior
management in the most important Group companies. The related remuneration, including social and pension
contributions, is as follows:
43.5 - Remuneration of key management personnel
Item
2009
2008
Remuneration paid in short term
Post-employment benefits
14,800
522
13,546
3,261
Total
15,322
16,807
No loans were granted to key management personnel during the year and at 31 December 2009 the Group companies do
not report receivables in respect of loans granted to such personnel.
TRANSACTIONS WITH STAFF PENSIONS FUNDS
The Parent Company and its subsidiaries that apply the National Collective Labour Contract are members of the Fondoposte
Pension Fund, which is the national supplementary pension fund for non-managerial staff. As indicated in article 14, paragraph
1 of Fondoposte’s Bylaws, the representation of members among the various officers and boards (the General Meeting of
delegates, the Board of Directors, Chairman and Deputy Chairman, Board of Statutory Auditors) is shared equally between the
workers and the companies that are members of the Fund. Among other things, the Fund’s Board of Directors takes decisions
regarding:
• the general criteria for the allocation of investment risk and for investment policies;
• the choice of fund manager and depositary bank.
44 - OTHER INFORMATION
POSTAL SAVINGS DEPOSITS
Postal savings deposits collected by the Parent Company in the name of and on behalf of Cassa Depositi e Prestiti are
shown in the table below, which breaks deposits down by category.
44.1 - Postal savings deposits
Item
31 Dec 2009
31 Dec 2008
Postal savings books
Interest-bearing Postal Certificates:
91,119,705
192,617,608
102,904,310
89,713,298
81,800,655
185,542,713
95,696,530
89,846,183
Total
283,737,313
267,343,368
The above amounts include accrued and unpaid interest.
ASSETS UNDER MANAGEMENT
Total assets under management by BancoPosta Fondi SpA SGR, consisting of the fair value of units measured on the last
working day of the year, are shown below:
44.2 - Assets under management
Item
31 Dec 2009
31 Dec 2008
Collective funds
Internally managed funds
Third-party fund management
2,882,443
2,882,443
2,694,632
2,351,197
343,435
Total
2,882,443
2,694,632
Average assets under management within the context of BancoPosta Fondi SpA SGR’s proprietary mutual investment
funds amount to 2,745 million euros for 2009 (2,969 million euros for 2008). As of 1 January 2009, the company appointed
a third-party fund manager, already responsible for making specific investment decisions pursuant to art. 33, paragraph 3
of the Consolidated Law on Finance, to manage its proprietary funds pursuant to art. 36 of the same law. As a result of
this new management model, BancoPosta Fondi now acts as a promoter company responsible for promoting and
organising the funds, and for managing relations with investors, whilst the appointed third-party fund manager is
responsible for managing all the financial aspects of the funds.
The Group’s asset management company is also responsible for the management of Poste Vita SpA’s individual investment
portfolios.
COMMITMENTS
Purchase commitments given primarily by the Parent Company are summarised below.
44.3 - Commitments
Item
Purchase commitments
Goods and services
Property leases
Intangible assets
Investment property
Total
31 Dec 2009
31 Dec 2008
544,971
550,112
68,911
48,762
88
617,576
466,931
183,128
88,404
33
1,212,844
1,356,072
222
Future commitments with respect to property leases (see note 34.4), which may generally be broken off with six months
notice, break down as follows according to due date:
44.4 - Property lease commitments
Item
31 Dec 2009
31 Dec 2008
Lease rentals due:
within 12 months
after 5 years
132,483
351,652
65,977
134,583
312,245
20,103
Total
550,112
466,931
31 Dec 2009
31 Dec 2008
Sureties and other guarantees issued
Issued by the Group in its own interests in favour of third parties
Issued by banks in the interests of Group companies in favour of third parties
3,667
93,260
4,475
90,236
Total
96,927
94,711
31 Dec 2009
31 Dec 2008
Securities subscribed by customers held by third-party banks
Other assets
21,486,200
66,715
23,659,959
356,584
Total
21,552,915
24,016,543
GUARANTEES
Personal guarantees issued by the Group are as follows:
44.5 - Guarantees
Item
THIRD-PARTY ASSETS
44.6 - Third-party assets
Item
Other third-party assets almost entirely relate to revenue stamps that the Parent Company was required to sell and
distribute under the Agreement with the MEF of 17 March 1995.
From 1 January 2007, the 2007 Finance Act requires stamp duty to be paid electronically via the issue of a specific receipt
by the authorised intermediary. As a result, based on the instructions contain in a memorandum issued by the tax
authorities on 29 December 2006, from 1 January 2007 Poste Italiane has suspended the distribution and sale (including
on its own behalf) of all revenue stamps. Despite the fact that there is limited market demand for the stamps held in stock
by the Parent Company, Poste Italiane is required to continue to hold them.
ASSETS IN THE PROCESS OF ALLOCATION
At 31 December 2009 the Parent Company has paid a total of 364,568 thousand euros in claims on behalf of the Ministry
of Justice (399,265 thousand euros at 31 December 2008), for which, under the agreement between Poste Italiane and
the MEF, it has already been reimbursed by the Treasury, whilst awaiting acknowledgement of the relevant account
receivable from the Ministry of Justice.
LITIGATION
In 2008 the Parent Company was charged with violation of certain requirements of Legislative Decree 231/2001. The
charges regard the failure to implement appropriate preventive measures at organisational and operational level, thereby
permitting the deliberate overestimation of postal savings deposits in 2003, in order to earn an undue amount of income.
Whilst it is not possible to predict the outcome of the trial, which is underway at the Court of Naples, it should be noted
that the financial and commercial effects of the dispute have been reflected in the financial statements for previous
years, and that Poste Italiane SpA has for some time now taken appropriate organisational and operational steps to
comply with the requirements of Legislative Decree 231/2001.
PROCEEDINGS PENDING BEFORE THE AUTHORITIES
European Commission
In execution of the European Commission’s Decision of 16 July 2008 regarding State aid, and in accordance with
instructions from the Parent Company’s shareholder, on 15 January 2009 Poste Italiane SpA paid the amount due to the
MEF. The Company’s appeal is pending before the European Community Court.
Antitrust Authority
On 27 April 2009 the Antitrust Authority notified Poste Italiane SpA that it had begun an investigation of an alleged violation
of art. 3 of Law 287/90 or art. 82 of the EU Treaty, relating to bill payment services. The Authority intends to investigate
whether or not the “strategy by which Poste Italiane – thanks to its dominant position and its ability to determine the
standards for payment forms that exclude their use outside the postal network -, applies contractual conditions that are
unjustifiably onerous and that exclude competitors“. Poste Italiane SpA has given certain commitments pursuant to art. 14
ter of Law 287/90, aimed at curbing any anti-competitive behaviour. On 28 December 2009 the Antitrust Authority made
binding the commitments formally given by Poste Italiane SpA, with the aim of facilitating the use of alternative channels
for the payment of bills. The Authority has adjudged the commitments sufficient to remove the threat to competition and
has terminated its investigation without ruling that an infringement had taken place or imposing any penalty.
The Antitrust Authority ruling of 15 October 2009 launched an investigation of Poste Italiane SpA in relation to deregulated
postal services, in order “to determine whether the Company's actions entailed an abuse of a dominant market position
pursuant to art. 82 of the EC Treaty”, with specific reference to the Posta Time product and participation in certain
tenders. Consequently, the Company sought to demonstrate to the Authority the "rationale" behind its commercial
initiatives and, in the belief that such actions fully comply with competition legislation, on 1 March 2010 it nevertheless
decided to give certain specific commitments aimed at curbing any anti-competitive behaviour. If these commitments are
accepted the procedure may be closed without any penalties for Poste Italiane SpA. The outcome of the subsequent
phases of the investigation, which is currently underway, is awaited, but the procedure is expected to be completed by
18 November 2010.
On 8 October 2009 the Antitrust Authority formally launched a PB/455 procedure regarding PosteShop SpA, in order to
investigate alleged infringements of the "Regulations governing misleading advertising", connected with the advertising
224
material used by PosteShop to promote the activities of the Kipoint franchise retail network. At the end of December 2009,
convinced of the lawfulness of its actions, the company nevertheless submitted a proposal containing commitments aimed
at rectifying the alleged abuses. On 9 March 2010 the Authority notified its refusal to accept the commitments made,
except for the "possibility for the Authority to assess the subsequent behaviour of the party, if this constitutes effective
and documented cooperation to the benefit of consumers”.
Bank of Italy
inspectors’ findings with its own observations and proposals regarding the initiatives it intends to take in order to resolve the
problems identified, which will be periodically provided and continuously updated. In a letter dated 13 August 2009 the
Supervisory Authority acknowledged the Company's intention to undertake necessary corrective measures regarding
BancoPosta's organisational and accounting structure in order to bring it fully into line with the relevant legislation, and also
advised Poste Italiane to continue its planning and/or implementation of projects aimed at overcoming the specific issues that
emerged during the inspection. On 25 February 2010 the Company notified the Bank of Italy on the state of progress as of
31 December 2009 of the planned activities.
In tandem with these activities, a joint working group was set up, including the Bank of Italy, the shareholder, the Ministry of
the Economy and Finance, and Poste Italiane SpA, in order to assess the best means for identifying legally independent capital
for BancoPosta, in order to apply prudential supervision requirements and protect BancoPosta's creditors.
Isvap
The Private Insurance Regulator (ISVAP) completed its investigation of Poste Vita SpA’s activities, begun at the end of 2008,
in December 2009. The resulting findings were communicated to the company’s management in February 2010. The
company has responded to ISVAP’s findings with its own observations and proposals regarding the initiatives it intends to
take in order to resolve the problems identified. Based on the investigation conducted so far, and notwithstanding the risk
of a fine being imposed, the findings are not expected to generate liabilities not adequately covered by the relevant
provisions.
DISCLOSURE OF FEES PAID TO THE INDEPENDENT AUDITORS
In 2009 Poste Italiane SpA independently adopted guidelines governing the procedures for awarding contracts to the
Independent Auditors or companies within its network. The guidelines also require the Company to provide a summary of the
contracts awarded.
The following table shows fees, broken down by type of service, payable to PricewaterhouseCoopers SpA and companies
within its network for 2009.
44.7 - Disclosure of fees paid to the Independent Auditors
Item
Entity providing service
Fees
Audit
PricewaterhouseCoopers network
1,524
-
Voluntary audits or audit-related services
90
-
Services other than audit
17
1,397
Total
(*)
(*)
3,028
The above amounts do not include incidental expenses and charges (for example, the regulatory fee paid to the Consob).
The services other than audit mainly regard a long-term contract, awarded by Poste Italiane SpA via a tender process, for
monitoring the quality of the Priority Mail and Posta Target services, and a contract, awarded by SDA Express Courier SpA,
for assistance in the design and implementation of CRM systems.
45 - INFORMATION ON INVESTMENTS
45.1 - List of investments consolidated on a line-by-line basis
Name (registered office)
BancoPosta Fondi SpA SGR (Rome)
Consorzio Logistica Pacchi ScpA (Rome)
Consorzio per i Servizi di Telefonia Mobile ScpA (Rome) (*)
Europa Gestioni Immobiliari SpA (Rome)
Mistral Air Srl (Rome)
Postecom SpA (Rome)
PosteMobile SpA (Rome) (*)
Poste Energia SpA (Rome) (*)
Poste Italiane Trasporti SpA (Rome)
Poste Link Scrl (Rome) (*)
Poste Tutela SpA (Rome)
Poste Vita SpA (Rome) (*)
Postel SpA (Rome)
PostelPrint SpA (Rome)
PosteShop SpA (Rome)
SDA Express Courier SpA (Rome)
(*)
% interest
Share
capital
Profit/(Loss)
for year
Equity
100%
97.5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
12,000
516
120
103,200
530
6,450
2,582
120
1,020
200
153
561,608
15,122
19,941
(2,342)
(1,612)
(6,795)
377
803
5,197
771
107,878
49,377
516
120
417,278
(683)
39,770
9,415
788
5,419
7,251
7,177
1,070,734
100%
100%
100%
100%
20,400
7,140
2,582
54,600
19,505
4,237
(1,545)
(23,529)
138,400
32,768
5,806
81,198
The figures for these companies have been calculated under IFRS, and may not, therefore, be consistent with those contained in the financial statements
prepared under Italian GAAP.
226
45.2 - List of investments accounted for using proportionate consolidation
Assets
Italia Logistica Srl (*) (Rome)
(*)
Liabilities
% interest
current
non-current
current
non-current
Revenues
50%
44,297
14,713
50,382
3,175
73,185
Profit/(Loss)
for year
(6,011)
The number of staff at 31 December 2009 totals 80.
45.3 - List of investments in entities accounted for using the equity method
% interest
Assets
Liabilities
Revenues
Profit/(Loss)
for the year
51%
30.30%
100%
51%
1,471
43
3,845
10
1,275
10
2,876
-
2,143
4,329
263
81
499
-
50%
85%
100%
90%
100%
99.88%
20%
7,857
4,296
8,693
4,243
1,717
834
241
8,449
3,698
2,907
518
1,660
1,664
756
114
8,308
11,712
5,132
1,000
516
2,485
5
14,129
871
(74)
77
(135)
12
6
20
Address Software Srl (Rome)
Consorzio ANAC (Rome)
Consorzio Poste Contact (Rome)
Consorzio Poste Welfare - in liquidation (Rome) (a)
Docugest SpA (Parma)
Docutel Communications Services SpA (Siena)
Poste Assicura SpA (Rome)
Poste Tributi ScpA (Rome)
Poste Voice SpA (Rome)
Postel do Brasil Ltda (Brasilia) (b)
Programma Dinamico SpA (Rome) (c)
Uptime SpA (Rome) (d)
The Group’s investment in the Poste Welfare consortium (in liquidation) is held by the Poste Contact consortium.
Figures taken from the company’s latest approved financial statements for the year ended 31 December 2007.
(c)
Figures taken from the company’s latest approved financial statements for the year ended 31 December 2008; Group companies do not hold investments in
Programma Dinamico SpA (note 2.2).
(d)
Figures taken from the company’s latest approved financial statements for the year ended 31 December 2008.
(a)
(b)
46 - EVENTS AFTER 31 DECEMBER 2009
Events after the end of the reporting period are described in the above notes. No other material events have taken place
after 31 December 2009.
Notes to the consolidated financial statements I Attestation of the separate and consolidated financial statements 227
ended 31 December 2009 pursuant to art.154-bis of Legislative Decree 58/1998
1. The undersigned, Massimo Sarmi, as Chief Executive Officer, and Alessandro Zurzolo, as
Manager responsible for Poste Italiane SpA’s financial reporting, having also taken account of
the provisions of art.154-bis, paragraphs 3 and 4 of Legislative Decree 58 of 24 February 1998,
attest to:
– the adequacy with regard to the nature of the Company and
– the effective application of the administrative and accounting procedures adopted in
preparation of the separate and consolidated financial statements during 2009.
2. In this regard, it should be noted that:
2.1 as highlighted in the Internal Control-Integrated framework model issued by the Committee of
Sponsoring Organizations of the Treadway Commission, which represents the international
standard body of generally accepted principles of internal control, as expressly referred to by
Confindustria (the main organization representing Italian manufacturing and services companies) in
its Guidelines for the role of Manager responsible for financial reporting pursuant to art.154-bis of
the Consolidated Law on Finance, an internal control system, no matter how well designed and
implemented, can only provide reasonable, not absolute, assurance that the company’s objectives
will be achieved, including true and fair financial reporting;
2.2 a number of activities, including checks on the effective application of administrative and
accounting procedures, are in progress.
3. We also attest that:
3.1 the separate and consolidated financial statements:
a) have been prepared in compliance with the International Financial Reporting Standards
endorsed by the European Union through EC Regulation 1606/2002, issued by the European
Parliament and by the Counsel on 19 July 2002;
b) are consistent with the underlying accounting books and records;
c) give a true and fair view of the financial position and results of operations of the Company
and its subsidiaries included in the basis of consolidation.
3.2 the Directors’ Report on Operations includes a reliable operating and financial review of the
Company and of the Group, as well as a description of the main risks and uncertainties to which
they are exposed.
Rome, Italy 24 March 2010
Chief Executive Officer
Massimo Sarmi
Manager responsible for financial reporting
Alessandro Zurzolo
(This certification has been translated from the original which was issued in accordance with Italian legislation)
228
STATUTORY AUDITORS’ REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS OF GRUPPO POSTE ITALIANE
FOR THE YEAR ENDED 31 DECEMBER 2009
To the Shareholders of Poste Italiane SpA
The consolidated financial statements of Gruppo Poste Italiane for the year ended 31 December 2009, which report profit
for the year of 903,990 thousand euros (882,582 thousand euros for the year ended 31 December 2008), have been
prepared by the Parent Company, in accordance with the provisions of EC Regulation no. 1606/2002, under international
financial reporting standards (IFRS). The financial statements consist of the statement of financial position, the separate
income statement, the statement of comprehensive income, the statement of changes in equity, the statement of cash
flows and the notes to the financial statements, accompanied by the Directors’ Report on Operations.
The notes also provide a clear description of the basis of accounting used, the specific accounting standards chosen and
applied, and the nature and value of related party transactions.
The statement of financial position format uses the current/non-current distinction, whilst the separate income statement
has been prepared using the nature of expense method, and the statement of cash flows using the indirect method.
The reports of the boards of statutory auditors and independent auditors of consolidated companies do not indicate critical
issues of any significance.
The Board acknowledges that the independent auditors, PricewaterhouseCoopers SpA, issued their opinion on the
consolidated financial statements on 6 April 2010.
In conclusion, our review of the criteria adopted in the preparation of the consolidated financial statements, with particular
reference to the basis of consolidation and the consistent application of accounting standards, did not reveal any significant
aspects or information to be included in this Report.
Rome, Italy 9 April 2010
THE BOARD OF STATUTORY AUDITORS
D.ssa Silvana Amadori
Dr. Ernesto Calaprice
Dr. Francesco Ruscigno
- Chairwoman
- Auditor
- Auditor
Statutory Auditors’ Report | Independent Auditors’ Report 229
INDEPENDENT AUDITORS’ REPORT
230
Independent Auditors’ Report 231
235
Statement of financial position
Income statement
Statement of comprehensive income
Statement of changes in Equity
Statement of cash flows
Notes to the financial statements
1. Introduction
2. Basis of accounting
3. Risk management
4. Property, plant and equipment
5. Investment property
6. Intangible assets
7. Investments
8. Financial assets
9. Deferred taxes
10. Other non-current assets
11. Trade receivables
12. Current tax assets
13. Other current receivables and current assets
14. Assets and liabilities attributable to BancoPosta
15. Cash and cash equivalents
16. Non-current assets held for sale
17. Share capital
18. Shareholder transactions
19. Reserves
20. Provisions for liabilities and charges
21. Staff termination benefits
22. Financial liabilities
23. Trade payables
24. Current tax liabilities
25. Other liabilities
26. Revenues from sales and services
27. Other income from financial activities
28. Other operating income
29. Cost of goods and services
30. Other expenses deriving from financial activities
31. Staff costs
32. Depreciation, amortisation and impairments
33. Other operating costs
34. Finance income and costs
35. Income tax expense
36. Related party transactions
37. Other information
38. Events after 31 December 2009
ended 31 December 2009 pursuant to art 154-bis of Legislative Decree 58/1998
Statutory Auditors’ Report
Independent Auditors’ Report
236
237
238
239
240
241
241
242
256
271
273
274
275
278
283
285
286
291
291
293
298
299
300
300
300
301
303
304
308
310
311
315
318
318
320
322
323
324
325
326
328
329
334
337
338
339
341
236
STATEMENT OF FINANCIAL POSITION
ASSETS
(€ )
related party
transactions
(Note 36)
31 Dec 2008
related party
transactions
(Note 36)
1 Jan 2008
related party
transactions
Note
31 Dec 2009
Investment property
Intangible assets
Investments
Financial assets
Deferred tax assets
Other assets
Total
[4]
[5]
[6]
[7]
[8]
[9]
[10]
2,965,692,335
77,017,157
344,913,756
1,074,632,600
1,013,265,835
550,163,995
494,165,864
6,519,851,542
1,074,632,600
847,533,069
1,465,574
3,065,542,343
90,932,287
301,101,727
1,058,132,600
1,267,840,327
553,771,084
441,754,223
6,779,074,591
1,058,132,600
1,020,838,092
1,465,574
2,989,108,737
108,127,410
245,674,599
1,052,749,927
961,236,361
469,878,751
390,581,206
6,217,356,991
1,052,749,927
778,723,624
-
[14] 39,512,159,351
6,804,803,566
38,909,191,471
5,546,358,076
38,940,311,289
6,870,168,285
[11]
[12]
[13]
[8]
[15]
3,965,438,745
37,701,684
446,204,856
595,289,454
2,440,741,256
1,088,964
532,290,150
3,333,804,732
30,581,485
414,787,093
811,496,268
1,998,463,200
1,992,895
488,746,888
3,958,008,232
114,114,418
339,276,557
607,700,431
2,796,213,661
2,186,855
577,866,036
1,598,563,915
6,643,198,654
-
485,572,317
972,911,119
6,049,153,014
-
618,524,814
5,637,624,452
-
1,285,006
-
3,471,862
-
543,641
-
Non-current assets
Current assets
Trade receivables
Current tax assets
Financial assets
Escrow account
Total
Non-current assets
held for sale
[16]
TOTAL ASSETS
52,676,494,553
51,740,890,938
50,795,836,373
LIABILITIES AND EQUITY
(€ )
related party
transactions
(Note 36)
31 Dec 2009
[17]
[19]
1,306,110,000
659,587,199
2,111,223,261
4,076,920,460
-
1,306,110,000
258,415,681
1,524,462,720
3,088,988,401
-
1,306,110,000
4,479,268
1,599,522,646
2,910,111,914
-
[20]
[21]
[22]
[9]
[25]
286,437,335
1,419,160,550
1,823,509,546
345,634,313
72,919,430
3,947,661,174
33,010,996
512,667,533
-
257,919,500
1,486,766,219
2,029,562,067
231,816,596
95,090,246
4,101,154,628
33,393,254
679,517,331
-
290,921,479
1,451,781,270
2,608,689,331
319,852,186
141,143,696
4,812,387,962
41,315,320
840,235,277
-
Liabilities attributable to BancoPosta [14] 37,810,095,612
Current liabilities
Provisions for liabilities and charges [20]
894,482,141
Trade payables
[23] 1,652,096,792
Current tax liabilities
[24]
65,694,979
Other liabilities
[25]
1,615,575,988
[22] 2,613,967,407
Total
6,841,817,307
172,232,170
37,206,088,506
671,679,728
37,500,168,708
965,288,018
13,963,084
493,554,062
-
818,843,297
1,751,142,184
58,399,127
89,439,541
541,345,963
-
510,217,690
1,676,957,120
16,691,809
17,311,116
468,871,027
-
98,276,750
1,496,338,894
103,716,732
1,474,164,021
75,612,771
492,268,365
485,572,317
2,734,363,584
7,344,659,403
485,572,317
306,478,262
1,895,137,149
5,573,167,789
233,629,852
Non-current liabilities
Other liabilities
Total
TOTAL LIABILITIES AND EQUITY
52,676,494,553
51,740,890,938
1 Jan 2008
related party
transactions
Note
Equity
Share capital
Reserves
Retained earnings
Total
31 Dec 2008
related party
transactions
(Note 36)
50,795,836,373
Statement of financial position | Income statement 237
INCOME STATEMENT
(€)
related party
transactions
(Note 36)
Note
2009
Other income from financial activities
Total revenue
[26]
[27]
[28]
9,841,166,028
167,973,157
194,195,191
10,203,334,376
2,924,996,138
22,529,920
9,825,764,130
56,082,409
139,295,289
10,021,141,828
2,787,248,986
14,114,643
Other expenses deriving from financial activities
Staff costs
of which non-recurring costs/(income)
Operating profit/(loss)
[29]
[30]
[31]
2,045,092,280
1,310,700
6,051,933,698
(121,006,911)
504,421,623
(9,908,163)
211,855,645
1,398,628,593
713,752,592
31,400,980
32,956,971
2,109,726,264
11,284,433
5,879,992,958
(203,103,825)
492,034,658
(12,301,600)
301,582,207
1,238,822,908
752,951,196
20,227,819
118,575,235
Finance costs
Finance income
Profit/(Loss) before tax
[34]
173,978,500
144,524,373
1,369,174,466
33,967,800
105,849,715
-
232,093,032
19,673,038
268,493,310
1,275,223,186
63,744,370
146,503,901
-
632,514,327
(52,118,963)
-
554,426,732
(89,632,370)
-
Income tax expense
of which non-recurring expense/(benefit)
PROFIT FOR THE YEAR
Financial statements
[32]
[6]
[33]
[34]
[35]
736,660,139
2008
related party
transactions
(Note 36)
720,796,454
238
STATEMENT OF COMPREHENSIVE INCOME
(€)
2009
2008
736,660,139
720,796,454
[19.1]
569,546,591
(31,744,412)
277,974,863
(47,124,254)
[19.1]
3,521,945
(6,204,094)
23,643,069
66,051,492
[21.1]
[9.5]
49,848,585
(183,696,695)
(94,951,218)
(64,055,509)
Total other components of comprehensive income
401,271,920
161,538,443
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
1,137,932,059
882,334,897
Increase(Decrease) in fair value during the period
Cash flow hedges
Increase/(Decrease) in fair value during the period
Actuarial gains/(losses) on provisions for staff termination benefits
Taxation of items recognised directly in, or transferred from, Equity
Note
Statement of comprehensive income I Statement of changes in Equity 239
STATEMENT OF CHANGES IN EQUITY
Equity
Reserves
(€ )
Share capital
Legal
reserve
1,306,110,000
75,116,168
107,681,086
(178,317,986)
1,599,522,646
2,910,111,914
-
-
155,786,750
60,954,746
665,593,401
882,334,897
Appropriation of Profit to Reserves
-
37,194,917
-
-
(37,194,917)
-
Dividends paid
-
-
-
-
(245,000,000)
(245,000,000)
Other shareholder transactions
(after tax effect of 5,778,941)
-
-
-
-
(458,458,410)
(458,458,410)
1,306,110,000
112,311,085
263,467,836
(117,363,240)
1,524,462,720
3,088,988,401
Total comprehensive
income for the period
-
-
366,746,024
(1,614,329)
772,800,364 (*)
1,137,932,059
Appropriation of Profit to Reserves
-
36,039,823
-
-
(36,039,823)
-
Dividends paid
-
-
-
-
(150,000,000)
(150,000,000)
1,306,110,000
148,350,908
630,213,860
(118,977,569)
2,111,223,261
4,076,920,460
Total comprehensive
income for the period
(*)
Fair value
Cash flow
Retained earnings/
reserve hedge reserve (Accumulated losses)
Total
This item includes profit for the year of 736,660 thousand euros, actuarial gains on provisions for staff termination benefits of 49,849 thousand euros, net of
the related current income tax expense of 13,709 thousand euros.
240
STATEMENT OF CASH FLOWS
Note
2009
2008
Profit/(Loss) for year
[32]
Impairments of investments
[33]
Net provisions for staff
[31]
Net provisions for restructuring charges
[31]
Net provisions for liabilities and charges
[33]
Use of provisions for liabilities and charges
[20]
Termination benefits paid
[21]
(Gains)/Losses on disposals
[28]
(Gains)/Losses on financial transactions
(Dividends)
[34]
Dividends received
(Finance income realised)
[34]
(Finance income in form of interest)
[34]
Interest received
Interest expense and other finance costs
[34]
Interest paid
Losses and impairments/(Recoveries) on receivables
[33]
Tax and witholding tax paid
Other changes
Cash generated by operating activities before changes in working capital
[a]
Changes in working capital:
(Increase)/Decrease in Trade receivables
(Increase)/Decrease in Other receivables and assets
Increase/(Decrease) in Trade payables
[23]
Increase/(Decrease) in Other liabilities
Cash generated by/(used in) changes in working capital
[b]
Increase/(Decrease) in liabilities attributable to Bancoposta
Net cash generated by/(used for) financial assets held for trading
[14]
Net cash generated by/(used for) available-for-sale financial assets
[14]
(Increase)/Decrease in other assets attributable to Bancoposta
Cash generated by/(used for) financial assets and liabilities attributable to BancoPosta
[c]
Net cash flow from /(for) operating activities
[d]=[a+b+c]
Investing activities:
[4]
Investment property
[5]
Intangible assets
[6]
Investments
[7]
Net cash used for investments in held-to-maturity investments attributable to BancoPosta [14]
Disposals:
Property, plant and equipment, investment property and assets held for sale
Net cash generated by investments in held-to-maturity investments attributable to BancoPosta
Net cash flow from /(for) investing activities (*)
[e]
Proceeds from/(Repayments of) long-term borrowings
(Increase)/Decrease in loans and receivables
Increase/(Decrease) in short-term borrowings
Dividends paid
[18]
Closure of escrow account (EC Decision of 16 July 2008)
[15]
Decrease in amount payable to parent (EC Decision 16 July 2008)
[25]
Opening of escrow account (EC Decision of 16 July 2008)
[15]
Net cash flow from/(for) financing activities and shareholder transactions
[f]
Net increase/(decrease) in cash and cash equivalents
[g]=[d+e+f]
[15]
972,912
1,369,174
504,422
196,886
115,000
76,080
(319,058)
(80,532)
(54,893)
(70,245)
(154)
131
(139,861)
120,343
171,050
(101,609)
27,796
(720,818)
32,106
1,125,818
618,525
1,275,223
492,035
12,337
432,361
67,370
(263,544)
(123,775)
(29,293)
11,141
(1,201)
883
(27,092)
(230,556)
235,784
226,967
(124,222)
102,321
(636,518)
21,059
1,441,280
(602,443)
(127,733)
(99,045)
122,806
(706,415)
525,830
1,041,786
(1,504,262)
1,064,366
1,127,720
1,547,123
(2,333,968)
573,777
(172,620)
74,184
(45,623)
429,718
(305,184)
(1,141,553)
51,434
1,018,392
(376,911)
1,494,087
2,039,539
(268,955)
(288)
(184,483)
(16,500)
(165,687)
(3,281,112)
(438,618)
(652)
(196,555)
(17,719)
(888,544)
(1,778,988)
76,337
504,739
2,740,493
(595,456)
(89,674)
(197,488)
145,484
(124,011)
(150,000)
485,572
(485,572)
(326,015)
(471,148)
625,652
1,598,564
55,490
145,593
2,256,695
(863,298)
(517,086)
(170,799)
197,077
427,892
(245,000)
(485,572)
(276,402)
(135,793)
354,387
972,912
(€000)
(*)
This item includes BancoPosta’s portfolio of held-to-maturity investments.
Statement of cash flows I Notes to the financial statements 241
NOTES TO THE FINANCIAL STATEMENTS
1 - INTRODUCTION
Poste Italiane SpA derives from the conversion of the Public Entity, Poste Italiane, under Resolution 244 of 18 December
1997 passed by the Interministerial Economic Planning Committee. The Company’s registered office is at Viale Europa 190,
Rome (Italy) and it is 65% owned by the Ministry of the Economy and Finance (MEF) and 35% owned by Cassa Depositi
e Prestiti SpA (CDP).
The Company provides a Servizio Postale Universale (a Universal Postal Service, provided under a Universal Service
Obligation) in Italy, whilst offering integrated communication, logistics, financial and insurance products and services
throughout the country via its national network of around 14,000 post offices. The Company operates in the three
segments of Postal Services, Financial Services and Insurance Services, which are supplied by the various business units
and Group companies. Postal Services include Mail, Express Delivery, Logistics and Parcels, and Philately. Financial
Services regard the activities of BancoPosta listed in art. 2 of Presidential Decree 144 of 14 March 2001, and primarily refer
to the collection of public deposits in all their forms, the supply of payment services, foreign currency trading, the
promotion and marketing of loans issued by banks and other authorised financial institutions, and the provision of
investment services. Poste Italiane SpA increasingly aims to supply integrated services and innovative solutions to the
general public, to firms and to central and local government by exploiting its own distribution channels as well as the
multiple and complementary competencies of its business units.
These financial statements for the year ended 31 December 2009 have been prepared in euros, the currency of the
economy in which the Company operates. They consist of the statement of financial position, the separate income
statement, the statement of comprehensive income, the statement of changes in Equity, the statement of cash flows and
the following notes. All amounts in the consolidated financial statements and the notes are shown in thousands of euros,
unless otherwise stated.
Poste Italiane SpA’s consolidated financial statements are published together with this document.
242
2 - BASIS OF ACCOUNTING
2.1 - BASIS OF PREPARATION
Poste Italiane SpA prepares its financial statements under the International Financial Reporting Standards (IFRS) issued by
the International Accounting Standards Board (IASB), and adopted by the European Union in EC Regulation 1606/2002 of
19 July 2002, and pursuant to Legislative Decree 38 of 20 February 2005, which introduced regulations governing the
adoption of IFRS in Italian law.
The term IFRS includes all the International Financial Reporting Standards, International Accounting Standards (IAS) and
interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC, previously known as the
Standing Interpretations Committee or SIC), adopted by the European Union and container in the EU regulations published
through to 24 March 2010, the date on which the Board of Directors of Poste Italiane SpA approved these financial
statements.
Legislative Decree 195 of 6 November 2007, which implemented Directive 2004/109/EC that standardised the
transparency requirements relating to the information published by issuers whose financial instruments are traded on a
regulated market (the so-called Transparency Directive), has amended Legislative Decree 58 of 24 February 1998 (the
Consolidated Law on Finance), introducing the definition “listed issuers whose home member State is Italy”. Given that
Poste Italiane SpA falls within this definition as an issuer of bonds listed on the Luxembourg Stock Exchange, during
preparation of this document the CONSOB regulations contained in Resolution 15519 of 27 July 2006 and in Ruling
DEM/6064293 of 28 July 2006 were taken into account.
The accounting policies adopted reflect the fact that the Company will remain fully operational in the foreseeable future, in
accordance with the going concern assumption. The accounting policies are described in notes 2.2 and 2.3, and are
consistent with those applied in the preparation of the financial statements for the year ended 31 December 2008.
The statement of financial position1 has been prepared on the basis of the current/non-current distinction2. The format of
the separate income statement is based on the nature of expenses. The statement of cash flows has been prepared in
accordance with the indirect method3.
As required by CONSOB Resolution 15519 of 27 July 2006, each item in the statement of financial position, separate
income statement and statement of cash flows shows the amounts deriving from related party transactions. The separate
income statement also shows, where present, income and expenses deriving from material non-recurring transactions or
from non-recurring events. Taking account of the different nature and the number of transactions carried out by the
Company, many items of income and expense of a non-recurring nature may occur with significant frequency. These items
of income and expense are only presented separately when they are both of an exceptional nature and were generated by
a transaction of a material nature.
In order to allow comparison on a like-for-like basis with the amounts for 2008, certain items in the statement of financial
position, separate income statement and statement of cash flows at and for the year ended 31 December 2008 have been
reclassified.
At the date of approval of these financial statements, there is no established practice on which to base interpretation and
application of a number of new, or revised, international accounting standards. Moreover, at the date of approval of these
finance statements the tax authorities had yet to issue systematic official interpretations regarding all the effects of the
tax-related measures contained in Legislative Decree 38 of 20 February 2005, Law 244 of 24 December 2007 (the 2008
Budget Law) and the Ministerial Decree of 1 April 2009, which have introduced numerous changes to IRES and IRAP. The
finance statements have, therefore, been prepared on the basis of the best available knowledge of IFRS and taking account
of best practice in this regard. Any future changes or updated interpretations will be reflected in subsequent years, in
accordance with the specific procedures provided for by the related standards.
1. As more fully described in note 2.2 - Accounting standards and interpretations applied from 1 January 2009, the statement of financial position includes
amounts at 1 January 2008 following application of IFRIC 13.
2. Current assets include assets (such as inventories and trade receivables) that are sold, consumed or realised as part of the normal operating cycle even
when they are not expected to be realised within twelve months after the reporting period (paragraph 68, Revised IAS 1).
3. Under the indirect method, net cash from operating activities is determined by adjusting profit/(loss) for the year to reflect the impact of non-cash items,
any deferment or provisions for previous or future operating inflows or outflows, and revenue or cost items linked to cash flows from investing or financing
activities.
Notes to the financial statements 243
2.2 - SUMMARY OF SIGNIFICANT ACCOUNTING STANDARDS AND POLICIES
Poste Italiane SpA’s financial statements have been prepared on a historical cost basis, with the exception of certain items
that must be measured at fair value. The significant accounting standards and policies are described below.
Property, plant and equipment is stated at cost, less accumulated depreciation and any accumulated impairment losses.
The cost includes any directly attributable costs of making the asset ready for its intended use, and the cost of
dismantling and removing the asset to be incurred as a result of legal obligations requiring the asset to be restored to
its original condition. Borrowing costs incurred for the acquisition or construction of property, plant and equipment are
recognised as an expense in the period in which they are incurred (with the exception of borrowings costs directly
attributable to the acquisition or construction of a qualifying asset, in which case the borrowings costs are capitalised
as part of the cost of that asset). The costs incurred for routine and/or cyclical maintenance and repairs are recognised
directly in the income statement in the year in which they are incurred. The capitalisation of costs attributable to the
extension, modernisation or improvement of assets owned by the Company or held under lease is carried out to the
extent that they qualify for separate classification as an asset or as a component of an asset, applying the component
approach, which states that each component with a different useful life and value is recognised separately. The original
cost is depreciated on a straight-line basis from the date the asset is available and ready for use, with reference to the
asset’s expected useful life.
The useful life and residual value of property, plant and equipment are reviewed annually and adjusted, where necessary,
at the end of each year. Land is not depreciated. When a depreciable asset consists of separately identifiable
components, with useful lives that are significantly different from those of the other components of the asset, each
component is depreciated separately, in application of the component approach, over a period that does not, however,
exceed the life of the principal asset. The Company has estimated the following useful lives for the various categories of
property, plant and equipment:
Category
Buildings
Structural improvements to own assets
Plant
Electronic stations
Light constructions
Equipment
Furniture and fittings
Electrical and electronic office equipment
Motor vehicles
Other assets
(*)
No. of years
33
20
5-10
6
10
8
8
5
4-5
estimated lease term (*)
3-5
Or the useful life of the improvement if lower than the estimated lease term
Property assets and the related fixed plant and machinery located on land held under concession or sub-concession, which
is to be handed over free of charge to the grantor at the end of the concession term, are accounted for, on the basis of the
type of asset, in property, plant and equipment and depreciated on a straight-line basis over the shorter of the useful life
of the asset and the residual concession term.
Gains and losses deriving from the disposal or retirement of an asset are determined as the difference between the
disposal proceeds and the net carrying amount of the asset retired or sold, and are recognised in the income statement in
the year the transaction takes place.
244
Investment property
Investment property regards land or buildings held to earn rentals or for capital appreciation or both, thus producing cash
flows that are largely separate from other assets. The same accounting standards and policies are applied to investment
property as those applied to property, plant and equipment.
Intangible assets
An intangible asset is an identifiable non-monetary asset without physical substance, which is controlled by the Group and
from which future economic benefits are expected to flow to it. Intangible assets are recognised at cost, including any
directly attributable costs of making the asset ready for its intended use, less accumulated amortisation, where applicable,
and any accumulated impairment losses. Borrowing costs incurred for the development of intangible assets are recognised
as an expense in the period in which they are incurred (with the exception of borrowings costs directly attributable to the
development of a qualifying asset, in which case the borrowings costs are capitalised as part of the cost of that asset).
Amortisation is applied from the date the asset is ready for use and is provided systematically on the basis of the remaining
useful life of the asset, or its estimated useful life.
The costs of acquiring industrial patents, intellectual property rights, licences and similar rights are capitalised. Amortisation
is applied on a straight-line basis, in order to allocate the purchase cost over the shorter of the expected use life and the
related contract term from the date the right may be exercised.
Amortisation is calculated on the basis of the estimated useful life of the software, which is as a rule three years.
Leased assets
Assets held under finance leases, where the risks and rewards of ownership are substantially transferred to the Company,
are recognised at fair value or, if lower, at the present value of the minimum lease payments. The corresponding liability,
represented by the capital element of future lease payments, is recognised in the statement of financial position as a
financial liability. These assets are depreciated applying the same policies and rates previously described for property, plant
and equipment.
Leases where the lessor retains substantially all the risks and rewards of ownership are classified as operating leases.
Payments made under operating leases are recognised in the income statement on a straight-line basis over the lease
term.
Impairment of assets
At the end of each reporting period, the Company reviews the value of its property, plant, equipment and intangible
assets with finite lives to assess whether there is any indication that an asset may be impaired. If any indication exists,
the Company estimates the recoverable amount of the asset in order to determine the impairment loss to be
recognised in the income statement. The recoverable amount is the higher of an asset’s fair value less costs to sell
and value in use, represented by the present value of the future cash flows expected to be derived from the asset. In
calculating value in use, future cash flow estimates are discounted using a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the business. The realisable value of assets that do
not generate separate cash flows is determined with reference to the cash generating unit to which the asset belongs.
An impairment loss is recognised for the amount by which the carrying amount of the asset, or the cash generating
unit to which it belongs, exceeds its recoverable amount. When an impairment no longer exists, the carrying amount
of the asset is reinstated and the reversal recognised in the income statement. The reversal must not exceed the
carrying amount that would have been determined had no impairment loss been recognised and had depreciation or
amortisation been charged.
Investments
Investments in subsidiaries and associates are accounted for at cost (including any directly attributable incidental
expenses), after adjustment for any impairments. Investments in subsidiaries and associates are tested annually for
impairment or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Any impairment is recognised in the income statement as an impairment loss. When an impairment no longer exists, the
carrying amount of the asset is reinstated and the reversal recognised in the income statement. The reversal must not
exceed the carrying amount that would have been determined had no impairment loss been recognised.
Financial instruments include financial assets and liabilities that are classified on initial recognition, based on the business
purpose for which they were acquired. Purchases and sales of financial instruments are recognised in each category on the
transaction date, representing the date on which the Group commits to purchase or sell the asset, or, in the case of the
insurance business and BancoPosta’s operations, at the settlement date4. In BancoPosta’s case, this almost always coincides
with the transaction date. Changes in fair value between the transaction date and the settlement date are, in any event,
recognised in the financial statements.
Financial assets
On initial recognition, financial assets are classified in one of the following four categories and accounted for as
follows:
• Financial assets at fair value through profit or loss
This category includes: (a) financial assets held for trading, (b) those that qualify for designation at fair value through profit
or loss on initial recognition, and (c) derivative instruments, with the exception of the effective portion of those
designated as cash flow hedges. Financial assets in this category are accounted for at fair value and changes during the
period of ownership are recognised in profit or loss. Financial instruments in this category are classified as short-term if
they are “held for trading” or if they are expected to be realised within twelve months of the end of the reporting period.
Derivative instruments are treated as assets and liabilities depending on whether the fair value is positive or negative.
Fair value gains and losses on outstanding transactions with the same counterparty are offset, where contractually
permitted.
• Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market, and primarily regard amounts due from customers, including trade receivables. They are included in current assets,
except for maturities greater than twelve months after the end of the reporting period, which are classified as non-current
assets. These assets are carried at amortised cost 5 using the effective interest method.
If there is objective evidence of an impairment, a provision for impairment is established on the basis of the present value of
estimated future cash flows. The resulting impairment loss is recognised in the income statement. When an impairment no
longer exists, the carrying amount of the asset is reinstated on the basis of the value that would have resulted from application
of the amortised cost method. The estimation procedure adopted in determining provisions for doubtful debts primarily
reflects the identification and measurement of elements resulting in specific reductions in the value of individually significant
assets. Financial assets with similar risk profiles are subsequently measured collectively, taking account, among other things,
of the age of the receivable, the nature of the counterparty, past experience of losses and collections on similar positions and
information on the related markets.
4. This is possible for transactions carried out on organised markets (the so-called “regular way”).
5. The amortised cost of a financial asset or liability means the amount recognised initially, less principal repayments and plus or minus accumulated
amortisation, using the effective interest method, of the difference between the initial amount and the maturity amount, after reductions for impairment
and insolvency. The effective interest rate is the rate that exactly discounts contractual (or expected) future cash payments or receipts over the expected
life of the asset or liability to its initial carrying amount. Calculation of amortised cost must also include external costs and income directly attributable to
the asset or liability on initial recognition.
246
• Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and maturities that
the Company has a positive intention and ability to hold to maturity. These assets are carried at amortised cost using the
effective interest method, adjusted to reflect any impairment loss. The same policies as described in relation to loans
and receivables are applied if there is an impairment.
• Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial instruments that are either designated in this category or
not attributable to any of the other categories described above. These financial instruments are recognised at fair value
and any resulting fair value gains or losses are recognised in an Equity reserve. This reserve is only recycled through
profit or loss when the financial asset is effectively disposed of (or extinguished) or, in the event of accumulated losses,
when there is evidence that the impairment recognised in Equity cannot be recovered. Solely in the case of debt
securities, if the fair value subsequently increases as the objective result of an event that took place after the
impairment loss was recognised in the income statement, the value of the financial instrument is reinstated and the
reversal recognised in the income statement. Moreover, the recognition of returns on debt securities under the
amortised cost method takes place through profit or loss, as do the effects of movements in exchange rates, whilst
movements in exchange rates relating to available-for-sale equity instruments are recognised in a specific Equity
reserve. The classification of an asset as current or non-current depends on the strategic choice regarding how long to
hold the asset and its effective negotiability. As a result, financial instruments expected to be realised within twelve
months of the end of the reporting period are classified as current assets.
Financial assets are derecognised when the Company no longer has the right to receive cash flows from the investment and
it has substantially transferred all the related risks and rewards and control.
Financial liabilities, including borrowings, trade payables and other payment obligations, are carried at amortised cost using
the effective interest method. If there is a change in the expected cash flows and they can be reliably estimated, the value
of borrowings is recalculated to reflect the change on the basis of the present value of estimated future cash flows and
the internal rate of return initially applied. Financial liabilities are classified as current liabilities, unless the Company has an
unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.
Financial liabilities are derecognised on settlement or when the Company has substantially transferred all the related risks
and rewards.
Derivatives are initially recognised at fair value on the date the derivative contract is entered into and if they do not qualify
for hedge accounting. Gains and losses arising from changes in fair value after initial recognition are accounted for as
finance income or finance costs in the income statement for the period.
If, on the other hand, derivative financial instruments qualify for hedge accounting, gains and losses arising from changes
in fair value after initial recognition are accounted for in accordance with the specific policies described below.
The Company documents the relationship between each hedging instrument and the hedged item, as well as its risk
management objective, the strategy for undertaking the hedge transaction and the methods used to assess effectiveness.
Assessment of whether the hedging derivative is effective takes place both at inception of the hedge and on an ongoing
basis.
• Fair value hedges
Both changes in the value of fair value hedges and changes in the value of the hedged item are recognised in profit or loss
when the hedge regards recognised assets or liabilities or an unrecognised firm commitment 6. When the hedging
transaction is not fully effective, resulting in differences between the above changes, the ineffective portion represents a
loss or gain recognised separately in other components of comprehensive income for the period.
6. Fair value hedge: a hedge of the exposure to a change in fair value of a recognised asset or liability or of an unrecognised firm commitment attributable to
a particular risk, and that could have an impact on profit or loss.
• Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges7
after initial recognition are recognised in a specific Equity reserve (Cash flow hedge reserve). A hedging transaction is
generally considered highly effective if, both at inception of the hedge and on an ongoing basis, changes in the
expected future cash flows of the hedged item are substantially offset by changes in the fair value of the hedging
instrument. Amounts accumulated in Equity are reclassified to profit or loss in the periods when the hedged item will
affect profit or loss.
In the case of hedges associated with a highly probable forecast transaction (such as, the forward purchase of fixed
income debt securities), the reserve is reclassified as a gain or a loss in profit or loss for the period or in the periods in
which the asset or liability, subsequently accounted for and connected to the above transaction, will affect profit or loss
(as, for example, an adjustment to the return on the security).
If the hedging transaction is not fully effective, the gain or loss arising from a change in fair value relating to the
ineffective portion is recognised in profit or loss for the period.
If, during the life of the derivative, the forecast hedged transaction is no longer expected to occur, the related gains and
losses accumulated in the Cash flow hedge reserve are immediately taken to profit or loss for the period. On the other
hand, when a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
the related gains and losses accumulated in the cash flow hedge reserve at that time remain in Equity and are recognised
in profit or loss at the same time as the original underlying transaction.
Determining the fair value of financial instruments
The fair value of financial instruments traded in active markets is based on quoted market prices (bid prices) at the end
of the reporting period. The fair value of financial instruments that are not traded on an active market is based on prices
quoted by external dealers and on valuation techniques primarily based on objective financial variables, as well as by
taking account, where possible, of prices in recent transactions and quoted market prices for substantially similar
instruments.
Income tax expense
The charge for current income tax expense (both IRES, or corporation tax, and IRAP, or regional tax) is based on taxable
profit for the period and the related regulations, applying the rates in force.
Deferred tax assets and liabilities are calculated on all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts, using tax rates that are expected to apply when the related deferred tax assets are
realised or the deferred tax liabilities are settled. Deferred tax assets and liabilities are not recognised if the temporary
differences derive from investments in subsidiaries, where the timing of the reversal of the temporary difference is
controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future.
Moreover, under IAS 12, deferred tax liabilities are not recognised on goodwill deriving from a business combination.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which
the temporary differences can be utilised.
Current and deferred taxes are recognised in the income statement, with the exception of taxes charged or credited
directly to Equity. In this case the tax effect is recognised directly in the specific item in Equity.
With regard to the recent changes to the law governing the calculation of direct taxation, should the treatment adopted by
the Company at the date of preparation of these consolidated financial statements not correspond to the tax authorities’
subsequent official interpretations of the Ministerial Decree of 1 April 2009, which implemented the 2008 Budget Law, it
may be necessary to apply reclassifications to current and deferred taxes.
Current and deferred tax assets and liabilities are offset when they are applied by the same tax authority to the same tax
paying entity, which has the legally exercisable right to offset the amounts recognised, and when the entity intends to
7. A hedge of the exposure to the variability of cash flows attributable to a particular risk associated with an asset or liability or with a highly probable forecast
transaction, and that could have an impact on profit or loss.
248
exercise this right. As a result, even if accounted for in liabilities, tax liabilities accruing in interim periods that are shorter
than the tax year are not offset against the matching assets deriving from withholding tax or advances paid.
The Company’s tax expense and its accounting treatment reflect that effects deriving from the fact that Poste Italiane SpA
has adopted a tax consolidation arrangement, which it has elected to apply in accordance with the related law together
with the following subsidiaries: Europa Gestioni Immobiliari SpA, PosteMobile SpA, Poste Vita SpA and SDA Express
Courier SpA. The tax consolidation arrangement is governed by Group regulations based on the principles of neutrality and
equality of treatment, which are intended to ensure that the companies included in the tax consolidation are in no way
penalised as a result. Following adoption of the tax consolidation arrangement, Poste Italiane SpA posts its IRES tax
expense to income taxes for the period, after adjustments to take account of the positive or negative impact of
consolidation adjustments. Should the reductions or increases in tax expense deriving from such adjustments be
attributable to the companies included in the tax consolidation, to which the positive or negative income components
adjusted in the process of consolidation refer, Poste Italiane SpA shall attribute such reductions or increases in tax expense
to the above companies. 50% of the economic benefit deriving from tax losses for the period transferred to the Parent
Company from companies included in the tax consolidation is passed on to these companies by Poste Italiane SpA. The
remaining benefit is covered by specific provisions for tax consolidation losses, which is offset by a corresponding
reduction in tax liabilities and attributed to the companies that generated such benefit, should there be reasonable certainty
that such companies will produce sufficient future taxable income to enable them to recover the related deferred tax
assets, had they not been included in the tax consolidation. Should such conditions not occur, the provisions, which
represent the Parent Company’s potential debt to its subsidiaries, will be taken to Poste Italiane SpA’s income statement
as a tax consolidation gain. Consolidated tax expense is determined on the basis of the tax expense or tax losses for the
period for each company included in the consolidation, taking account of any withholding tax or advances paid.
Other taxes not related to income are included in Other operating costs.
Cash and cash equivalents refer to cash in hand, deposits held at call with banks, amounts that at 31 December 2009 the
Parent Company has temporarily deposited with the MEF and other highly liquid short-term investments with original
maturities of ninety days or less.
Current account overdrafts are accounted for in current liabilities.
This category refers to non-current assets or assets included in disposal groups where the carrying amount is to be
recovered primarily through a sale transaction rather than through continued use. Assets held for sale are accounted for at
the lower of the net carrying amount and fair value less costs to sell. When a depreciable asset is reclassified in this
category, the depreciation process is halted at the date of the reclassification.
Equity
Share capital
The share capital is represented by the Company’s subscribed and paid-up capital. Incremental costs directly attributable
to the issue of new shares are recognised as a reduction of the share capital, net of any deferred tax effect.
Reserves
These regard capital or revenue reserves established for a specific purpose. They include, among others, the fair value
reserve, relating to items recognised at fair value through Equity, and the cash flow hedge reserve, deriving from
recognition of the effective portion of hedging instruments outstanding at the end of the reporting period.
Retained earnings
This item includes the portion of profit for the period and for previous periods that was neither distributed nor taken to
reserves or used to cover losses, and actuarial gains and losses deriving from the calculation of the liability for staff
termination benefits. This item also includes transfers from other equity reserves, when they have been released from the
restrictions to which they were subject.
Provisions for contingencies and charges represent provisions for liabilities or losses that are either likely or certain to be
incurred, but that are uncertain as to the amount or as to the date on which they will arise. Provisions for liabilities and
charges are made when the Company has a present (legal or constructive) obligation as a result of a past event, and it is
more likely than not that an outflow of resources will be required to settle the obligation. Provisions are measured on the
basis of management’s best estimate of the expenditure required to settle the obligation. The discount rate used to
determine the present value reflects current market assessments of the time value of money and the risks specific to the
type of liability concerned. Liabilities that may only possibly give rise to an outflow of resources are reported in a specific
section of the notes on contingent assets and liabilities and no provisions are made.
Employee benefits
Post-employment benefits are of two types: defined contribution plans and defined benefit plans. Under defined
contribution plans the contributions paid by the Company are recognised in the income statement when incurred, based
on the related face value. Under defined benefit plans, given that the benefit to be paid can only be quantified after the
termination of employment, the related impact on the income statement and statement of financial position is recognised
on the basis of actuarial calculations.
Post-employment benefits: defined benefit plans
Defined benefit plans include staff termination benefits payable to employees pursuant to article 2120 of the Italian Civil
Code. Benefits vesting up to 31 December 2006 8, which are covered by the reform of supplementary pension provision,
must, from 1 January 2007, be paid into a supplementary pension fund or into a Treasury Fund set up by INPS. A
company’s liabilities deriving from defined benefit plans thus only regard provisions made up to 31 December 2006. The
liability represents the present value of the defined benefit obligation at the end of the reporting period, calculated using
the projected unit credit method to take account of the time that will pass before effective payment of the benefits.
Calculation of the liability recognised in the financial statements is carried out by independent actuaries. The calculation
takes account of vested termination benefits for the period of service to date and is based on actuarial assumptions.
These primarily regard the use of interest rates, reflecting market yields on government securities with terms to
maturity approximating to the terms of the related obligation, and staff turnover. Given that the Company is not liable
for staff termination benefits accruing after 31 December 2006, the actuarial calculation of staff termination benefits no
longer takes account of future rises in salary. Actuarial gains and losses are recognised at the end of each reporting
period, based on the difference between the carrying amount of the liability and the present value of the Company’s
obligations at the end of the period, due to changes in the above actuarial assumptions. These gains and losses are
recognised directly in Equity.
8. Where, following entry into effect of the new legislation, the employee has not exercised any option regarding the investment of vested staff termination
benefits, the Company has remained liable to pay the benefits until 30 June 2007, or until the date, between 1 January 2007 and 30 June 2007, on which
the employee exercised a specific option. Where no option was exercised, from 1 July 2007 vested staff termination benefits have been paid into a
supplementary pension fund.
250
Termination benefits and incentive schemes: defined contribution plans
Termination benefits are recognised in liabilities when the Company is demonstrably committed to terminating the
employment of an employee or group of employees before the normal retirement date, and to providing termination
benefits to the employee or group of employees as a result of an offer made to encourage voluntary redundancy. The
above benefits are recognised immediately in Staff costs as they are not capable of generating future economic benefits
for the Company.
Foreign currency translation
Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at closing exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
Revenue recognition
Revenue is recognised at the fair value of the consideration received, net of rebates and discounts, and in accordance
with the accruals basis of accounting. Revenue from the rendering of services is recognised when it can be reliably
measured on the basis of the stage of completion of the transaction. Revenue from activities carried out in favour of or
on behalf of the State is recognised on the basis of the amount effectively accrued, with reference to the laws and
agreements in force, and in relation to amounts allocated in government budgets. Remuneration of deposits with the
MEF of funds deriving from current account deposits are recognised on a time proportion basis, using the effective
interest method. This income is classified in Revenues from ordinary activities. The same classification is applied to
income from euro area government securities, in which deposits paid into BancoPosta current accounts by private
customers are invested. Revenue from the sale of goods is recognised when the significant risks and rewards of
ownership of the goods have been transferred to the buyer.
Government grants
Any government grants are recognised on a time proportion basis in direct correlation with the costs incurred, once they
have been formally allocated to the Company by the public entity concerned. Grants related to income are recognised in
the income statement as other operating income or as a direct adjustment of the cost item to which they refer.
Finance income and costs
Finance income and costs are recognised on a time-proportion basis, using the effective interest method.
Dividends
Dividends are recognised when the right to receive payment is established, which generally corresponds with approval of
the distribution by the General Meeting of shareholders of the investee company.
Related parties
Related parties within the Group refer to Poste Italiane SpA’s direct and indirect subsidiaries and associates. Related parties
external to the Group regard the parent, the MEF, the shareholder, Cassa Depositi e Prestiti SpA, entities controlled by the
MEF, and the Company’s key management personnel. The State and other Public Sector entities, other than the MEF and
the entities it controls, are not classified as related parties. Related party transactions do not include those deriving from
financial assets and liabilities represented by instruments traded on organised markets.
New accounting standards and interpretations applied from 1 January 2009
•
Revised IAS 1 – Presentation of Financial Statements
On 17 December 2008 EC Regulation 1274 adopted the new version of IAS 1, on the basis of which all items of
income and expense recognised in a period must be included either in one statement (the statement of
comprehensive income) or in two statements (a separate income statement and a statement of comprehensive
income). Gruppo Poste Italiane has opted to present the results for the period by including all items of income and
expense generated by non-owner transactions in two statements: the separate income statement and the statement
of comprehensive income.
• IFRS 8 – Operating segments that replaces IAS 14 – Segment Reporting
On 21 November 2007 EC Regulation 1358 adopted IFRS 8, which establishes new criteria for segment reporting. The
information supplied for each segment must reflect the method by which management uses balance sheet and income
statement elements to assess the segments’ performance and allocate resources to them.
As in previous years, information on operating segments is prepared on the basis of the Accounting Unbundling that
Poste Italiane SpA is required to carry out at the end of each reporting period in accordance with the law (Legislative
Decree 261/99 and Legislative Decree 144/01). In addition, as part of the planned improvements to the accounting and
organisational unbundling process for BancoPosta, the methods used by management to assess the performance of the
Company may be added to.
•
IFRIC 13 – Customer Loyalty Programmes
On 16 December 2008 EC Regulation 1262 adopted IFRIC interpretation 13, which is applicable to entities that grant
award credits as part of a customer loyalty programme, with a view to providing customers with incentives to buy their
goods and services. The new interpretation requires entities to account for award credits as a separately identifiable
component of the sale transaction(s) in which they are granted. The effects deriving from application of the new
interpretation have thus been determined retrospectively, as required by IAS 8 – Accounting Policies, Changes in
Accounting Estimates and Errors, and the comparative information restated. Due to the fact that the value attributed to
the award credits determined on the basis of the new interpretation (based on fair value) is no different from the
provisions made by the Company in previous years, application of IFRIC 13 has not resulted in adjustments to retained
earnings. For comparative purposes, the effects of the new interpretation thus consist in a reclassification of the
following components of the statement of financial position and income statement:
Item
Provisions for liabilities and charges (current portion)
Carrying amount
Restated amount
Carrying amount
Restated amount
31 Dec 2008
1 Jan 2008
825,287
(6,444)
818,843
517,006
(6,788)
510,218
1,489,895
6,444
1,496,339
1,467,376
6,788
1,474,164
252
Item
2008
Revenues
Carrying amount
Reclassification of fair value of GranPremio Mondo BancoPosta points granted
Reclassification of fair value of GranPremio Mondo BancoPosta points redeemed
Restated amount
9,825,420
(1,933)
2,277
9,825,764
Carrying amount
Supply of GranPremio Mondo BancoPosta prizes
Restated amount
2,107,449
2,277
2,109,726
Carrying amount
Adjustment to provisions for GranPremio Mondo BancoPosta
Restated amount
•
303,515
(1,933)
301,582
Amendment to IFRS 7 – Financial Instruments: Disclosures
On 27 November 2009 EC Regulation 1165 adopted the Amended IFRS 7, which requires additional disclosures
regarding financial instruments recognised at fair value. Above all, the amended standard requires that financial
instruments recognised at fair value be classified with reference to a hierarchy of levels, based on the significance of
the input used to determine fair value. This classification is shown in note 3.14.
Other accounting standards and interpretations applicable from 1 January 2009
The following accounting standards, amendments and interpretations are applicable from 1 January 2009, but their adoption
has not resulted in any change to the presentation or measurement of items in Poste Italiane SpA’s financial statements:
• Revised IAS 23 - Borrowing costs, adopted by EU Regulation 1260 of 10 December 2008;
• Amendment to IFRS 2 – Share-based Payment: Vesting Conditions and Cancellations, adopted by EU Regulation 1261 of
16 December 2008;
• Amendments to IAS 32 – Financial Instruments: Presentation and IAS 1 - Presentation of Financial Statements, adopted
by EU Regulation 53 of 21 January 2009;
• Amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards and IAS 27 - Consolidated
and Separate Financial Statements – cost of investments in subsidiaries, jointly controlled entities and associates,
adopted by EU Regulation 69 of 23 January 2009;
• Amendments to IFRS 4 – Insurance Contracts, adopted by EC Regulation 1165 of 27 November 2009;
• Amendments to IFRIC 9 – Reassessment of Embedded Derivatives and IAS 39 – Financial Instruments: Recognition and
Measurement, adopted by EC Regulation 1171 of 30 November 2009.
Finally, EU Regulation 70, published on 23 January 2009, has adopted various improvements to International Financial
Reporting Standards, most of which adopted from 1 January 2009, with the exception of certain amendments to IFRS 5 –
Non-current assets held for sale and discontinued operations, and amendments to IFRS 1 - First-time Adoption of
International Financial Reporting Standards, both applicable from 1 January 2010.
New accounting standards and interpretations not yet effective
The following accounting standards, amendments and interpretations are effective from 1 January 2010:
• IFRIC 12 – Service Concession Arrangements, adopted by EC Regulation 254 of 25 March 2009;
• IAS 27 – Consolidated and Separate Financial Statements, adopted by EC Regulation 494 of 3 June 2009;
• IFRS 3 – Business Combinations, adopted by EC Regulation 495 of 3 June 2009;
• IFRIC 16 - Hedges of a Net Investment in a Foreign Operation, adopted by EC Regulation 460 of 4 June 2009;
• IFRIC 15 – Agreements for the Construction of Real Estate, adopted by EC Regulation 636 of 22 July 2009;
• Amendment to IAS 39 – Exposures Qualifying for Hedge Accounting, and Change to IAS 39 – Financial Instruments:
Recognition and Measurement, adopted by EC Regulation 839 of 15 September 2009;
• IFRIC 17 – Distribution of Non-cash Assets to Owners, adopted by EC Regulation 1142 of 26 November 2009;
• IFRIC 18 – Transfers of Assets from Customers, adopted by EC Regulation 1164 of 27 November 2009.
The following amendments are effective from 1 January 2011:
• Amendments to IAS 32 – Financial Instruments: Presentation, adopted by EU Regulation 1293 of 23 December 2009.
At the date of approval of these consolidated financial statements, the IASB has issued the following accounting standards
and amendments, which have yet to be endorsed by the European Union:
• improvements to International Financial Reporting Standards, issued on 16 April 2009;
• changes to IFRS 2 - Share-based Payment, issued on 18 June 2009;
• changes to IFRS 1 - First-time Adoption of International Financial Reporting Standards, issued on 23 July 2009 and 29
January 2010;
• revised version of IAS 24 – Related Party Disclosures, issued on 4 November 2009.
Finally, the IFRIC has also issued the following interpretations, which have yet to be endorsed by the European Union:
• employee benefits (Amendment to IFRIC 14);
• hedges of financial liabilities (IFRIC 19).
The potential impact on Poste Italiane SpA’s financial reporting of the accounting standards, amendments and
interpretations due to come into effect is currently being examined and assessed.
2.3 - USE OF ESTIMATES
Preparation of the separate financial statements requires management to apply accounting standards and methods that
are at times based on complex judgements and estimates, linked to historical experience, and assumptions that are
considered reasonable and realistic under the related circumstances. Use of these estimates and assumptions
influences the amounts reported in the financial statements, with reference to the statement of financial position, the
separate income statement, the statement of comprehensive income and the statement of cash flows, as well as the
notes. The actual amounts of items for which the above estimates and assumptions have been applied may diverge
from those reported in previous financial statements, due to uncertainties regarding assumptions and the conditions on
which estimates are based. The estimates and assumptions are periodically reviewed and the impact of any changes
reflected in the financial statements for the period in which the estimated is revised, if the revision only influences the
current period, or also in future periods if the revision influences the current and future periods.
This section provides a description of accounting treatments that, more than others, require the use of subjective
estimates and for which a change in the conditions underlying the assumptions used could have a material impact on
the Company’s financial statements.
Revenue and receivables due from the State
Revenue from activities carried out in favour of or on behalf of the State and Public Sector entities is recognised on the
basis of the amount effectively accrued, with reference to the laws and agreements in force, taking account, in any event,
of the instructions contained in legislation regarding the public finances.
Whilst awaiting renewal of agreements with INPS and the tax authorities, which expired in 2007, in 2009 Poste Italiane
SpA contained to provide the related delegated services as normal. In these cases, revenue recognition is based on
the tariffs established in the previous agreements and which it is reasonable to expect will be confirmed. These tariffs
254
represent the lowest potential tariff, estimated on the basis of the state of negotiations with the entity concerned.
At 31 December 2009, receivables due to the Company from the MEF and the Cabinet Office amount to over 2 billion
euros. This amount consists of:
• receivables of over 840 million euros in the form of Universal Service Obligation (USO) subsidies. Of this amount,
approximately 460 million euros refers to remaining amounts due for the years from 2006 to 2008, for which provision
has been made in the government’s budget. Completion of the process of formalising the addendum to the Contratto di
Programma (Planning Agreement) for 2006-2008, the draft of which was approved by the Interministerial Committee for
Economic Planning on 18 December 2008, will enable collection of all but 36 million euros. Collection of this amount will
be possible following formalisation of the Contratto di Programma (Planning Agreement) for the three-year period 20092011. This also applies to amounts due for 2009, totalling more than 370 million euros, including approximately 50 million
euros for which provision has not been made in the government’s budget. Finally, receivables of around 10 million euros
have been subject to cuts in public spending introduced by the 2007 and 2008 Budget Laws. Impairment losses have
been recognised on these receivables;
• receivables of over 800 million euros in the form of publisher tariff subsidies. Of this amount, over 440 million euros,
receivable for services rendered and regularly billed by Poste Italiane SpA in the years from 2007 to 2009, has not been
provided for in the Cabinet Office budget. Payment of the remaining subsidies for the years from 2001 to 2007,
amounting to approximately 360 million euros, is due in instalments in accordance with a specific Cabinet Office Decree
and collection is to take place on a straight-line basis between 2010 and 2016;
• further receivables of 360 million euros due from the MEF in relation to delegated services, payment of interest on the
Company’s mandatory deposits with the Ministry and electoral subsidies. Of the latter item, provision has not been made
in the government’s budget for receivables totalling approximately 110 million euros.
Of the total amount receivable, with a face value of over 2 billion euros, the collection of approximately 716 million euros
will take place in instalments or has been suspended, whilst, in the case of approximately 610 million euros, either no
provision has been made or there is no legislation establishing the procedures for payment of the Company. The increase
in these receivables over time means that Poste Italiane SpA has to finance growing amounts of working capital, with a
negative impact cash flow management and the related returns. Given that it is not currently possible to forecast when
and how the receivables will be paid by the various Public Sector entities, without prejudice to the Poste Italiane SpA’s full
entitlement and related rights, provisions for doubtful debts due from the parent, the MEF, at 31 December 2009 reflect
the best estimate based on the circumstances and the financial impact of the above situation.
In the past, changes to the relevant legislation have been introduced after the end of the reporting period, resulting in
changes to estimates and influencing the income statement. The above circumstances mean that management cannot
exclude the possibility that, as a result of future legislation or the negotiations currently underway, the operating results for
the financial years after 2009 will reflect changes to the estimates in question.
Provisions
The Company makes provisions for potential liabilities deriving from disputes with staff, suppliers, third parties and, in
general, for liabilities deriving from present obligations.
Among other things, these provisions cover the liabilities that could result from legal action relating to the form of fixed-term
contract applied in previous years. In this regard, in March 2010 Parliament approved detailed and wide-ranging employment
legislation. One of the provisions introduces strict time limits for claims regarding specific areas (dismissal, transfers and
fixed-term contracts), whilst also imposing a cap on the compensation due to an employee in the event of "court-imposed
conversion" of a fixed-term contract.
Once this legislation comes into force it should help in establishing a clearer framework of reference in this complex area,
which has significantly impacted the Company’s operations and results in recent years. Implementation of the new
legislation will be closely followed, partly in order to adjust the basis for the estimation of the related potential liabilities to
be recognised in the financial statements. Moreover, in the course of this dispute, the plaintiffs have at times attempted to
seize the Company’s liquidity, and an estimate of the liabilities linked to this factor is included in the calculation of the related
provisions.
Determination of the provisions involves the use of estimates based on current knowledge of factors that may change over
time, potentially resulting in outcomes that may be significantly different from those taken into account when preparing the
financial statements.
Measurement of assets that have indefinite useful lives
Non-current assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. Testing for the above indicators requires the use of subjective judgements based on the information
available within the Group and in the market, and on historical experience. Moreover, when an impairment is recognised the
Group calculates the entity of the impairment using appropriate measurement techniques. The correct identification of events
or changes in circumstances indicating an impairment, and the estimates used in their calculation, are linked to factors that
may change over time, with a resulting impact on the measurements and estimates performed. The current economic and
financial crisis, which has resulted in highly volatile markets and great uncertainty with regard to economic projections, makes
it is difficult to produce forecasts that can, without any uncertainty, be defined as reliable.
At 31 December 2009 the fair value of the Poste Italiane SpA’s operating properties was significantly higher than their carrying
amount. In determining the net carrying amount of operating Land and Buildings, the Company also took account of any
indications that these assets may be impaired. In this regard, and with particular reference to properties used as post offices
and Sorting Centres, Poste Italiane SpA’s Universal Service Obligation was taken into account. The process thus took account
of the inseparability of the cash flows generated by the large number of properties that provide this service, which the
Company is required to operate throughout the country regardless of the expected profitability of each location. The unique
nature of the operating processes involved and the substantial overlap between postal and financial activities within the same
outlets, represented by post offices, were also taken into consideration. On this basis, the value in use of the Company’s
operating Land and Buildings is relatively unaffected by changes in the commercial value of the properties concerned and,
under particularly critical market conditions, certain properties may have values that are significantly higher than their mere
commercial value, without this having any negative impact on the Company’s cash flows or overall earnings.
Depreciation and amortisation of property, plant and equipment and intangible
assets
The cost of these assets is depreciated or amortised on a straight-line basis over the estimated useful life of the asset. The
useful life is determined at the time of purchase and based on historical experience of similar investments, market conditions
and expectations regarding future events that may have an impact, including new technologies. The effective useful life may,
therefore, differ from the estimated useful life. The Company periodically assesses changes in technology and in the industry,
in dismantling costs and in the recoverable amount of assets in order to update their residual useful lives. This periodic update
may lead to changes in the depreciation or amortisation period and thus in charges for depreciation or amortisation in the current
and in future years.
In the case of assets located on land held under concession or sub-concession, on expiry of the concession term, or whilst
awaiting confirmation of renewal, any additional depreciation of assets to be handed over free of charge at the end of the
concession term is calculated on the basis of the probable residual duration of the right to use the assets to provide public
services, estimated on the basis of the framework agreements entered into with the Public Sector, the status of negotiations
with the grantors and past experience.
Deferred tax assets
Accounting for deferred tax assets is based on expectations of taxable income in future years. Assessments of expected
taxable income to be used in order to account for deferred taxes depend on factors that may change over time, with a
significant impact on the measurement of this statement of financial position item.
256
Provisions for doubtful debts reflect estimated losses on receivables, taking into account, in the case of specific items
receivable from Public Sector entities, of legislation restricting public spending. Provisions for expected losses reflect the
estimated credit risk associated with historical experience of similar receivables, an analysis of past due items (both current
and historical), losses and collections, and monitoring of the current and future economic conditions in the related markets.
Fair value of unquoted financial instruments
The fair value of financial instruments that are not traded on an active market is based on prices quoted by external dealers,
or on internal valuation techniques that result in an estimate of what the transaction price would have been on the
measurement date in an arm’s length exchange motivated by normal business considerations. The Company uses
valuation models based primarily on financial variables taken from the market, in addition to taking account, where possible,
of prices in recent transactions and quoted market prices for substantially similar instruments, and of any related credit risk.
Calculation of staff termination benefits is carried out by independent actuaries. The calculation takes account of vested
termination benefits for the period of service to date and is based on actuarial assumptions of both a demographic and
economic and financial nature. These assumptions, which are based on the Company’s experience and relevant best
practices, are subject to periodic reviews.
3 - RISK MANAGEMENT
Definition and optimisation of Poste Italiane SpA’s financial structure, over both the short and medium/long term, and
management of the related cash flows is the responsibility of the Company’s Finance department, acting in accordance
with the general guidelines established by governance bodies.
Management of Poste Italiane SpA’s finances primarily regards BancoPosta’s operations as governed by Presidential
Decree 144/2001. In particular, these transactions regard management of the liquidity deposited in postal current accounts,
carried out in the Company’s own name but subject to restrictions on the investment of such liquidity in compliance with
the applicable legislation, and the management of collections and payments in the name and on behalf of third parties, as
well as the funding of assets and the investment of its own liquidity.
In compliance with the 2007 Budget Law, from that year Poste Italiane SpA has been required to invest the funds raised
as a result of postal current account deposits made by BancoPosta’s private customers in euro area government securities,
whilst the postal current account deposits of Public Sector customers have continued to be deposited with the MEF. In
2009 BancoPosta was engaged in reinvesting the funds deriving from maturing government securities. This was done by
taking account of the maturity profile of deposits, in accordance with an amortisation schedule approved by the Board of
Directors on the basis of a statistical/econometric model, developed by a leading consulting firm, that reflects the interest
rates and maturities typical of postal current accounts. This model is updated continually 9. This profile forms the basis of
the Company’s investment policy, given that certain gaps may emerge as a result of the need to reconcile risk exposure
with the need to earn returns linked to the market interest rate curve.
Poste Italiane SpA’s own liquidity is managed in accordance with investment guidelines approved by the Board of
Directors, which require the Company to invest in instruments such as government securities, high-quality corporate
or bank bonds and term bank deposits. Liquidity is also deposited in postal current accounts, with the resulting
9. In this regard, it is envisaged that in future the postal current account deposits of Public Sector customers will also have to be invested in euro area
government securities. This reflects the European Commission’s decision of 16 July 2008 relating to the level of interest rates paid to the Parent Company
(pursuant to art. 1, paragraph 31 of Law 266 of 23 December 2005, the 2006 Budget Law) on amounts held on deposit with the MEF.
deposits subject to the same requirements as apply to the investment of deposits by private current account holders
(note 14.7).
Balanced financial management and monitoring of the main risk/return profiles is carried out by organisational structures
operating separately and independently. In addition, specific processes are in place governing the assumption,
management and control of financial risks, including via the progressive introduction of appropriate information systems.
From an organisational viewpoint, the model consists of:
• a Risk Measurement and Control function carried out by an appropriate function that operates on the basis of the
organisational separation of risk assessment from risk management activities. Where necessary, this function
coordinates its activities with similar functions established within subsidiaries. The results of these activities are
examined by a Financial Risk Committee, which meets at least every three months and is responsible for carrying out an
integrated assessment of the main risk profiles.
The risk environment is defined on the basis of the framework established by IFRS 7, which distinguishes between four
main types of risk (a non-exhaustive classification):
• market risk;
• credit risk;
• liquidity risk;
• cash flow interest rate risk.
Market risk regards:
• price risk: this is the risk that the value of a financial instrument fluctuates as a result of market price movements,
including both movements deriving from factors specific to the individual instrument or the issuer, and factors that
influence all instruments traded on the market;
• foreign exchange risk: this is the risk that the value of a financial instrument fluctuates as a result of movements in
exchange rates for currencies other than the presentation currency;
• fair value interest rate risk: this is the risk that the value of a financial instrument fluctuates as a result of movements in
market interest rates.
In constructing the Risk Model adopted in order to monitor credit, liquidity and cash flow interest rate risks, the Group has
also taken account of the authoritative regulatory yardstick provided by the Bank of Italy’s prudential supervisory standards,
despite the fact that the Parent Company is not required to apply such standards.
MARKET RISK
Price risk
This type of risk regards financial assets that the Company has classified as “Held for trading” or “Available-for-sale”.
The following sensitivity analysis relates to the principal positions potentially exposed to fluctuations in value, excluding
certain minor items not traded on an active market. The amounts accounted for in the financial statements at 31 December
2008 and 31 December 2009 were subjected to a stress test, based on historical volatility during the year in question,
which was held to be representative of potential market movements.
The principal financial assets subject to price risk and the results of the analysis are shown in the following table.
258
3.1 - Market risk - Price
Change
in value
Pre-tax
profit
+Vol
-Vol
Equity
reserves
+Vol
-Vol
Position
+Vol
-Vol
2008 Effects
Equity instruments
Other investments
34,407
2,638
37,045
21,336
708
22,044
(21,336)
(708)
(22,044)
-
-
21,336
708
22,044
(21,336)
(708)
(22,044)
2009 Effects
Equity instruments
Other investments
61,470
3,271
15,563
587
(15,563)
(587)
-
-
15,563
587
(15,563)
(587)
64,741
16,150
(16,150)
-
-
16,150
(16,150)
The relevant items (note 8.4) regard investments in Equity instruments and available-for-sale (AFS) shares in Equity funds.
Equity instruments include the Parent Company’s holdings of 350,628 Class B shares in MasterCard Incorporated (350,628
shares at 31 December 2008) with a fair value of 60,808 thousand euros, and 11,144 Class C shares in Visa Incorporated
(11,144 shares at 31 December 2008).
During the second half of 2009 150,000 Mastercard Incorporated shares were sold forward, with settlement on 30 April
2010. At 31 December 2009, therefore, the risk position regarding Mastercard shares was calculated with reference to
200,628 shares with a fair value of 34,794 thousand euros. Finally, during January and February 2010 further forward sales
of Mastercard shares were concluded (note 8.6). As a result, the volatility indicated in the table represents a prudential
measurement.
These shares are not publicly traded in a regulated market but may be converted into an equal number of Class A shares,
which are listed on the New York Stock Exchange, when the periods provided for by both issuers’ articles of association
expire. For the purposes of the sensitivity analysis, the shares held have been priced as the Class A shares, minus an
adequate discount, and their volatility associated with that shown by these shares on the NYSE.
Foreign exchange risk
Sensitivity analysis of the items subject to foreign exchange risk was based on the most significant positions, assuming a
stress scenario determined by the levels of exchange rate volatility applicable to each foreign currency position held to be
material. It was decided to apply an exchange rate movement based on volatility during the year, which was held to be
representative of potential market movements. The results of the analysis are shown below.
Trade Receivables/Payables due from and to Overseas Correspondents
The most significant net position (approximately 98% of the reported foreign exchange exposure) is that denominated in
SDRs (Special Drawing Rights), a synthetic currency determined by the weighted average of the exchange rates of four
major currencies (Euro, US dollar, British pound, Japanese yen) used worldwide to settle commercial positions among
Postal Operators. At 31 December 2009 this position amounted to 2,182 thousand euros (4,111 thousand euros at 31
December 2008).
3.2 - Market risk - SDRs
2008 Effects
at 31 December 2008
2009 Effects
at 31 December 2009
Change
in value
+Vol
-Vol
Pre-tax
profit
+Vol
-Vol
Equity
reserves
+Vol
-Vol
Position
in SDRs/000
Position
in €000
260 days
260 days
260 days
260 days
73,033
(69,318)
80,829
(76,718)
5,757
(5,464)
(5,757)
5,464
5,757
(5,464)
(5,757)
5,464
-
-
3,715
4,111
293
(293)
293
(293)
-
-
71,672
(73,677)
77,995
(80,177)
5,839
(6,002)
(5,839)
6,002
5,839
(6,002)
(5,839)
6,002
-
-
(2,005)
(2,182)
(163)
163
(163)
163
-
-
260 days 260 days
At 31 December 2009, the net position in US dollars amounts to 20 thousand euros (20 thousand euros at 31 December
2008), a negligible sum for the purposes of this analysis.
Financial assets
This position primarily regards the shares in Mastercard Incorporated and Visa Incorporated (note 3.1), both denominated
in US dollars.
3.3 - Market risk - US dollar
2008 Effects
Equity instruments
at 31 December 2008
2009 Effects
Equity instruments
at 31 December 2009
Change in value
+Vol
-Vol
Pre-tax
profit
+Vol
-Vol
Equity
reserves
+Vol
-Vol
Position
in USD/000
Position
in €000
260 days
260 days
260 days
260 days
47,884
47,884
34,407
34,407
4,915
4,915
(4,915)
(4,915)
-
-
4,915
4,915
(4,915)
(4,915)
47,884
34,407
4,915
(4,915)
-
-
4,915
(4,915)
88,553
88,553
61,470
61,470
4,306
4,306
(4,306)
(4,306)
-
-
4,306
4,306
(4,306)
(4,306)
88,553
61,470
4,306
(4,306)
-
-
4,306
(4,306)
260 days 260 days
The 2009 effects on the value of the Equity instruments are only measured on the basis of the portfolio that at 31 December
2009 was not subject to forward sales and whose fair value is 35,456 thousand euros (51,078 thousand US dollars). The
foreign exchange risk on the Equity instruments sold forward has been hedged via the forward sale of a corresponding amount
in US dollars (note 8.6). The volatility indicated in the table represents, in any event, a prudential measurement in view of the
foreign exchange hedges on the forward sales of Mastercard shares executed in January and February 2010.
Fair value interest rate risk
Concerning the effects of changes in interest rates on the price of fixed income and fixed rate securities held by Poste
Italiane SpA, mainly in relation to Bancoposta’s activities, as a result of the investment of deposits paid into postal current
260
accounts by private customers, the following interest rate sensitivity analysis was based on changes in fair value following
a parallel shift in the forward yield curve (+/- 100 bps).
3.4 - Market risk - interest rate on fair value
Pre-tax
profit
Change in value
2008 effects
Available-for-sale financial assets (1)
Derivative financial instruments (2)
at 31 December 2008
2009 effects
Available-for-sale financial assets (3)
at 31 December 2009
Equity
reserves
Notional
Fair value
+100 bps
-100 bps
+100bps
-100bps
+100bps -100bps
13,588,950
12,630,200
958,750
300,000
300,000
13,044,233
12,993,663
50,570
308,708
308,708
(566,332)
(566,332)
(1,482)
(1,482)
602,610
602,610
1,489
1,489
-
-
(566,332) 602,610
(566,332) 602,610
(1,482) 1,489
(1,482) 1,489
13,888,950
13,352,941
(567,814)
604,099
-
-
(567,814) 604,099
14,670,700
14,092,700
578,000
100,000
100,000
15,108,809
15,067,840
40,969
101,143
101,143
(732,385)
(687,053)
(45,332)
(1,078)
(1,078)
794,709
745,103
49,606
1,090
1,090
-
-
(732,385) 794,709
(687,053) 745,103
(45,332) 49,606
(1,078) 1,090
(1,078) 1,090
14,770,700
15,209,952
(733,463)
795,799
-
-
(733,463) 795,799
At 31 December 2008 held-for-trading financial assets with a nominal value of 1,150,000 thousand euros (fair value through profit or loss) were not
The forward purchases indicated were not subject to sensitivity analysis at 31 December 2008 as they were extinguished, following changes in market
conditions, in early 2009, recognising the discontinuation of the related cash flow hedges.
(3)
At 31 December 2009 held-for-trading financial assets with a nominal value of 100,000 thousand euros (fair value through profit or loss) were not
(1)
(2)
Bancoposta’s investment securities (note 14.3) were nearly equally split between Held-to-maturity (HTM) and Available-forsale (AFS). While a change in fair value does not have an impact in terms of financial position or operating performance for
HTM financial assets, which are initially recognised at fair value and subsequently are reported at amortised cost, it does
have an effect in terms of financial position for AFS financial assets, which are recognised at fair value with any change
accounted for in Equity, making it necessary to monitor constantly the unrealised gains and losses. The sensitivity analysis
shown concerns AFS financial assets.
This item included fixed income government securities (ordinary BTPs) with a nominal value of 11,474,000 thousand euros,
and positions in inflation-linked BTPs (BTP€i) with a nominal value of 2,618,700 thousand euros. The BTP€i, which carry
floating rates indexed to European inflation, have been swapped for fixed rate bonds so as to hedge cash flows against
interest rate risk (cash flow hedges).
As a result of the re-investment of maturing securities, which saw the Company take advantage of the returns offered by
the peculiar nature of the interest rate curve, during 2009 the term to maturity of AFS investments rose by approximately
7 percentage points (at 31 December 2008 the term to maturity of the securities portfolio was 4.30). This has increased
the sensitivity of the fair value of the portfolio to interest rate risk, albeit to no significant extent.
At 31 December 2009, this form of interest rate risk also influenced the fair value of forward purchases of securities
attributable to BancoPosta and having a notional value of 578,000 thousand euros (note 14.4). These derivative financial
instruments were settled in early 2010 and the related sensitivity analysis, shown solely to ensure full disclosure in table
3.4, therefore represents a prudential measurement.
In addition to the above sensitivity analysis, the Company monitors the fair value interest rate risk to which BancoPosta’s
available-for-sale securities are exposed through the calculation of VaR (Value at Risk). This is estimated over a time horizon
of 3 days and with a probability of 99%. At 31 December 2009 the maximum VaR for available-for-sale financial assets
amounts to 104,726 thousand euros (169,957 thousand euros art 31 December 2008) and for derivative financial
instruments 6,992 thousand euros.
Available-for-sale financial assets exposed to this risk consist of short-term bank instruments with a total notional value of
100,000 thousand euros (300,000 thousand euros at 31 December 2008). The VaR for this portfolio, calculated on the
above basis, amounts to a maximum of 307 thousand euros (312 thousand euros at 31 December 2008).
CREDIT RISK
Credit risk regards the risk that a debtor might default on a payment or go into liquidation. This risk is managed as follows:
• minimum rating requirements for issuers/counterparties, based on the type of instrument;
• concentration limits per issuer/counterparty;
• a ban on investments in subordinated financial instruments, with the sole exception of the subsidiary, Poste Vita SpA;
• monitoring of changes in the ratings of counterparties.
At 31 December 2009 the following positions are subject to this risk:
Financial assets
Below, for each category of financial instrument the relevant credit exposure is shown. The ratings reported in the table
have been assigned by Moody’s.
3.5 - Credit risk - Financial assets
Item
From Aaa From A1
From Ba1
to Aa3 to Baa3 to not rated
Loans
Receivables
807,970
807,970
-
191,143
191,143
-
1,001
1,001
-
-
-
999,113
-
Cash flow hedges
Fair value hedges
Total
Total
539,083 1,347,053
509,180
509,180
29,903
837,873
From Aaa From A1
From Ba1
to Aa3 to Baa3 to not rated
Total
960,304
960,304
52,286
52,286
514,568
501,806
12,762
1,527,158
501,806
1,025,352
192,144
192,144
500,425
500,425
9,029
9,029
-
509,454
509,454
-
1,116
1,116
-
-
-
1,116
1,116
-
540,084 1,539,197
1,461,845
61,315
514,568
2,037,728
In 2009, the ongoing world financial crisis continued to entail a significant review of credit ratings by the main agencies,
with a substantial number of downgrades, even though the period witnessed a progressive reduction in credit spreads,
partly following the alignment of investors’ expectations with the fundamental indicators of the solvency of debtors. The
Company’s position was also affected by the changed picture, as its exposure features a lower average rating for its
counterparties than in the past, even though these counterparties continue to rank among the most creditworthy.
262
Loans of 509,180 thousand euros at 31 December 2009 (501,806 thousand euros at 31 December 2008) refer entirely to
loans (note 8.1) granted to Group companies and intercompany current accounts (note 8.2), with both types of transaction
conducted on an arm’s length basis. These loans include subordinated loans of 345,000 thousand euros to the insurance
company, Poste Vita SpA (unchanged with respect to 31 December 2008).
Receivables (note 8.3) primarily regard the Company’s claims on the parent, the MEF, amounting to 769,500 thousand
euros (905,548 thousand euros at 31 December 2008), and on the counterparties involved in asset swap transactions (with
collateral provided by a specific Credit Support Annex 10), totalling 55,660 thousand euros, in the form of guarantee deposits
established during the year under review (of these 38,470 thousand euros in favour of counterparties with investment
grade ratings.
Other instruments and deposits include investments in fixed rate securities (note 8.4) purchased during 2009 and issued
by Cassa Depositi e Prestiti SpA, with a fair value of 101,143 thousand euros (a face value of 100 million euros), and a
Fiduciary deposit established in 2002 with a fair value of 91,001 thousand euros (a face value of 107.5 million euros). This
latter instrument, which is more fully described in note 8.5, benefits from an embedded put option guaranteeing repayment
of 84% of the face value of the investment.
Credit risk arising from derivative transactions is mitigated through rating and counterparty concentration limits. Exposure
is monitored at current value, in accordance with the Bank of Italy’s prudential supervision instructions.
At 31 December 2009 Financial assets include derivative financial instruments.
The Company’s operational characteristics, related in particular to BancoPosta’s investment activities, gave rise to a
significant exposure toward the Italian State, involving essentially deposits with the MEF and the majority of holdings of
Italian government securities (note 14.1).
The fair value of derivative financial instruments included in Assets attributable to BancoPosta amounts to 40,969 thousand
euros and reflects forward purchases. At 31 December 2009 all counterparties for the Company’s derivatives have
investment grade ratings.
Non-current assets – Other assets
3.6 - Credit risk
31 Dec 2009
31 Dec 2008
Carrying
amount
Specific
impairments
Carrying
amount
Specific
impairments
Trade receivables due from Public Sector entities
Trade receivables due from the MEF
Receivables due under fixed-term contracts settlement
Third-party deposits in Postal Savings Books registered
in the name of Poste Italiane SpA
254,315
233,796
2,954
(2,189)
-
281,169
154,214
3,123
(2,189)
-
3,101
-
3,248
-
Total
of which past due
494,166
-
Item
441,754
-
10. Under these contracts, counterparty risk is limited through periodic margining, whereby if the fair value of the derivative instrument exceeds a set value,
the debtor must post adequate collateral with the creditor. At 31 December 2009 almost all counterparties for the Group’s derivatives have investment
grade ratings. The sole exception is a counterparty that it is not rated by the agencies, for which a special purpose company in the same group with an
investment grade rating has posted collateral with Poste Italiane SpA in the event of default or insolvency.
Current assets – Trade Receivables
3.7 - Credit risk
31 Dec 2009
31 Dec 2008
Carrying
amount
Specific
impairments
Carrying
amount
Specific
impairments
Public Sector
Private customers
Due from subsidiaries
Due from associates
Due from parents
918,045
224,078
884,078
543,787
271,101
153
1,124,197
(20,556)
(96,765)
(34,890)
(77,230)
734,825
243,708
756,883
444,336
250,493
45
903,515
(20,556)
(96,044)
(33,913)
(54,019)
Total
3,965,439
3,333,805
361,614
470,610
Item
of which past due
The nature of the Group’s customers, the structure of revenues and the method of collection mean that there is a
limited risk of default on trade receivables. In this regard, reference should be made to the paragraph of note 2.3
dealing with Revenues and receivables due from the State. All receivables are subject to specific monitoring and
reporting procedures to support credit collection activities.
3.8 - Credit risk
31 Dec 2009
31 Dec 2008
Carrying
amount
Specific
impairments
Carrying
amount
Specific
impairments
Prepaid taxes
Accrued income and prepaid expenses
232,186
1,086
208,982
3,951
(128,408)
-
203,206
1,989
206,155
3,437
(108,397)
-
Total
of which past due
446,205
1,052
Item
414,787
9,209
LIQUIDITY RISK
Liquidity risk is the risk that an entity may have difficulties in raising sufficient funds, at market conditions, to meet its
obligations deriving from financial instruments. Liquidity risk may regard the inability to sell financial assets quickly at an
amount close to fair value or by the need to raise funds at unfair rates.
Poste Italiane SpA applies a financial strategy that aims to minimise this type of risk as follows:
• diversification of the various forms of short- and long-term borrowings and counterparties;
• the availability of lines of credit in terms of amount and the number of banks;
• the gradual and consistent distribution of the maturities of medium/long-term borrowings;
• the adoption of analysis models designed to monitor the maturities of assets and liabilities.
At 31 December 2009 liquidity risk regards the potential exposure deriving from obligations relating to the investment of
264
deposits by current account customers. The liquidity risk associated with BancoPosta’s activities regards the investment
of current account deposits in euro area government securities. The potential risk derives from a mismatch between the
maturities of investments in securities and those of liabilities, represented by current accounts where the funds are
available on demand, thus compromising the Company’s ability to meet its obligations to current account holders. This
potential mismatch between assets and liabilities is monitored via the use of a maturity schedule resulting from a statistical
approach, which has led to the creation of a model based on the performance of current account deposits according to an
amortisation schedule that assumes the total withdrawal of deposits equally distributed over a period of ten years.
Investment policies have been based on this model. This approach is also in line with the Bank of Italy’s prudential
supervisory requirements.
At 31 December 2009 the match between the maturities of investments in euro area government securities and the above
ten-year profile for the repayment of liabilities has, however, reduced, even if not to a significant extent. This reflects
investment activity, which, in order to take advantage of the returns offered by the peculiar nature of the interest rate curve
during the year, has involved the purchase of securities with longer terms to maturity (around 1% of the total notional
amount matures in 2023 and 2% in 2040). As a result, the average term to maturity of investments has risen from 4.28 at
31 December 2008 to 4.53 at 31 December 2009.
The components of the financial statements most subject to liquidity risk at 31 December 2009 are described below. The
amounts shown refer to the Company’s obligations at maturity (nominal value plus accrued interest).
In order to analyse liquidity risk at 31 December 2009, the timing of withdrawals from postal current accounts held by third
parties (with a carrying amount of 39,473,727 thousand euros) was determined as follows:
• in the case of private customers’ deposits, whose funds are invested in euro area government securities, on the basis
of the amortisation schedule deriving from application of the statistical model developed in order to model the behaviour
of current account holders;
• in the case of Public Sector customers, by taking account of the fact that the Company is required to deposit the resulting
liquidity with the MEF, and that all changes in the amount due to current account holders is matched exactly in the
balance of the amount deposited with the Ministry after a delay of one bank working day (three working days until 30
June 2009). For this reason both items have been classified as being available on demand.
The following table shows liabilities increased by the expected cash flows generated by the related interest expense.
Postal current accounts are net of the postal current accounts held by Poste Italiane SpA.
31 Dec 2009
Item
Within Between 1
Cassa Depositi e Prestiti and
the MEF for management
of postal savings
Other payables
31 Dec 2008
Over
5 years
Total
Within
12 months
Between 1
and 5 years
Over
5 years
Total
70,766
-
-
70,766
572,456
-
-
572,456
222,796
68,108
-
290,904
528,137
52,341
-
580,478
-
547,709
-
-
547,709
913,486
-
913,486
Postal current accounts
13,987,933
10,763,868
13,226,556
37,978,357
13,528,422
10,495,130 12,815,598
36,839,150
Total liabilities
14,829,204
10,831,976
13,226,556
38,887,736
15,542,501
10,547,471 12,815,598
38,905,570
At 31 December 2009 these liabilities are invested in the following types of financial instrument. Investments in fixed
income instruments (a carrying amount of 28,458,973 thousand euros, as described in note 14.2) are shown on the basis
of the expected cash flows, consisting of the redemption value of the securities and the coupon interest to be collected
as it falls due.
31 Dec 2009
Item
Within Between 1
31 Dec 2008
Over
5 years
Total
Within Between 1
Over
5 years
Total
-
-
8,320,632
6,336,538
-
-
6,336,538
-
- (1,515,829)
(790,180)
-
-
(790,180)
-
-
-
-
2,775,665
1,434,826
2,319,734
1,447,903
8,320,632
Poste Italiane SpA’s own liquidity
held in postal current accounts (1,515,829)
Amounts due from
the Italian Treasury
839,808
Other receivables
706,910
2,660,696
104,110
(Capital + Interest)
3,289,121
839,808
706,910
2,660,696
104,110
2,775,665
1,434,826
2,319,734
1,447,903
14,220,634 17,136,087 34,645,842
3,279,431
13,631,728 15,239,390 32,150,549
Total assets
14,220,634 17,136,087 45,762,169
16,803,917
13,631,728 15,239,390 45,675,035
14,405,448
The liquidity risk profile at 31 December 2009 is largely unchanged from the preceding year, featuring the same use
characteristics. Whilst demand deposits from Public Sector entities were substantially stable, demand deposits from private
customers are up, above all the retail component, which is typically more stable. Nevertheless, mindful that this might be
also a consequence of the financial crisis, the Company continues to closely monitor the deposit base.
Expected cash flows for financial liabilities accounted for at the end of the reporting period, broken down by maturity, are
shown below. Repayments of principal at face value are increased by interest payments calculated on the basis of the
interest rate curve applicable at 31 December 2009 and 31 December 2008.
31 Dec 2009
Item
Within Between 1
31 Dec 2008
Over
5 years
Total
Within Between 1
Over
5 years
Total
Borrowings
Current account balances
of subsidiaries
276,552
2,331
1,698,234
-
3,699
-
1,978,485
2,331
696,793
3,381
1,864,399
-
121,486
-
2,682,678
3,381
325,418
2,062,284
20,070
250,465
325,418
2,332,819
145,760
1,963,171
80,916
191,364
145,760
2,235,451
Total
2,666,585
1,718,304
254,164
4,639,053
2,809,105
1,945,315
312,850
5,067,270
Current liabilities – Trade payables
31 Dec 2009
Item
Within Between 1
31 Dec 2008
Over
5 years
Total
Within Between 1
Over
5 years
Total
Suppliers
Subsidiaries
Interest payable to current
account holders
1,113,077
234,886
208,269
-
-
1,113,077
234,886
208,269
1,172,399
253,553
206,157
-
-
1,172,399
253,553
206,157
95,865
-
-
95,865
119,033
-
-
119,033
Total
1,652,097
-
-
1,652,097
1,751,142
-
-
1,751,142
266
CASH FLOW INTEREST RATE RISK
This regards uncertainty over future cash flows following fluctuations in market interest rates. It may be caused by a
mismatch – in terms of type of rate, indexation method and term to maturity – between financial assets and liabilities that
tends to last until contractual and/or expected maturity (the banking book), and which, as such, generates an impact on the
interest margin, which is thus reflected in the operating results for future periods.
At 31 December 2008 and 31 December 2009, sensitivity to interest rate risk of the cash flow generated by the
instruments concerned is summarized in the table below, and calculated to reflect changes resulting from a parallel shift
in the forward yield curve (+/- 100 bps).
3.13 - Cash flow interest rate risk and hedging policy
Pre-tax
profit
Equity
reserves
Total
equity
Note
Notional
+100bps
-100bps
+100bps
-100bps
+100bps
-100bps
[8.1]
[8.4]
[8.4]
355,320
100,000
107,500
3,553
1,000
1,075
(3,553)
(1,000)
(1,075)
-
-
3,553
1,000
1,075
(3,553)
(1,000)
(1,075)
[14.1]
5,546,358
55,464
(55,464)
-
-
55,464
(55,464)
2008 Effects
Loans
Other investments
Due from MEF
Current financial assets
Loans
[8.2]
142,188
1,422
(1,422)
-
-
1,422
(1,422)
[15.1]
962,472
9,625
(9,625)
-
-
9,625
(9,625)
Bank borrowings (1)
Borrowings (overdrafts)
Borrowings (from subsidiaries)
[22.3]
[22.3]
[22.4]
(650,000)
(2,782)
(145,760)
(3,550)
(28)
(1,458)
3,550
28
1,458
1,468
-
(1,481)
-
(2,082)
(28)
(1,458)
2,069
28
1,458
6,415,296
67,103
(67,103)
1,468
(1,481)
68,571
(68,584)
[8.1]
[8.4]
310,840
107,500
3,108
1,075
(3,108)
(1,075)
-
-
3,108
1,075
(3,108)
(1,075)
[14.1]
6,804,803
68,048
(68,048)
-
-
68,048
(68,048)
at 31 December 2008
2009 Effects
Loans
Other investments
Due from MEF
Current financial assets
Loans
[8.2]
196,550
1,966
(1,966)
-
-
1,966
(1,966)
[15.1]
1,586,988
15,870
(15,870)
-
-
15,870
(15,870)
Band borrowings
Borrowings (overdrafts)
Borrowings (from subsidiaries)
[22.3]
[22.3]
[22,4]
(250,000)
(325,418)
(2,500)
(3,254)
2,500
3,254
-
-
(2,500)
(3,254)
2,500
3,254
8,431,263
84,313
(84,313)
-
-
84,313
(84,313)
at 31 December 2009
(1)
At 31 December 2008, the effects of the sensitivity analysis are shown net of the hedges in place. At this date, the Company’s exposure to interest rate
risk in respect of its financial liabilities was hedged by interest rate swaps with a notional value of 295 million euros.
At 31 December 2009 this risk primarily relates to the investment of the funds deriving from the current account
deposits of Public Sector entities, which must be deposited with the MEF. Since 1 January 2008, these investments
earn interest at a floating rate, calculated on the basis of a basket of government securities and indexes, in accordance
with the method provided for by the European Commission in its Decision of 16 July 2008 and set out in the related
agreement between the MEF and Poste Italiane SpA, which was approved by Ministerial Decree of 7 April 2009.
Although the amounts involved are lower, this risk also regards the liquidity deposited in a buffer account with the
MEF, which earns interest in accordance with the treasury services agreement renewed on 18 June 2009. This is
calculated as the average yield on auctions of Short-term Treasury Certificates (BOT) organised by the MEF during the
relevant six-month period.
BANKING BOOK INTEREST RATE RISK
This is the risk, or the probability, that movements in interest rates will have a negative impact on an entity’s operating
results and financial position. It may be caused by a mismatch – in terms of type of rate, indexation method and term to
maturity – between financial assets and liabilities that tends to last until contractual and/or expected maturity (the banking
book), and which, as such, generates an impact on the interest margin, which is thus reflected in the operating results for
future periods.
At 31 December 2009 most of the risk in question is linked to the investment of the funds deriving from the postal current
account deposits of private customers in euro area government securities, as well as the liquidity held by Public Sector
entities in current accounts with Poste Italiane SpA, which must be deposited with the MEF. Returns on the investment
of these funds is related to general trends in interest rates, as the Company takes a commercial approach to their
management, and interest paid on these deposits is not index-linked:
• investments in euro area government securities yield a return based on the interest rates prevailing at the time of
purchase; BancoPosta’s Securities portfolio is currently invested in fixed income instruments, or floating rate
instruments that yield fixed interest payments thanks to the asset swaps described above (note 3.4). For this reason,
table 3.13 does not show evidence of any potential impact on this portfolio of the risk in question;
• as noted elsewhere (note 3.13), the funds deposited with the MEF yield floating interest payments.
Both types of investment are associated with an interest rate risk profile that is analysed and monitored with respect
to the financial characteristics of the instruments and is managed through an adequate hedging policy (note 14.4). As
a result, at 31 December 2009 forward purchases with a notional value of 578,000 thousand euros, maturing in 2010,
are in place, in addition to asset swaps with a notional value of 2,618,700 thousand euros.
DETERMINATION OF FAIR VALUE
The financial instruments recognised at fair value in these financial statements are classified below on the basis of a
hierarchy reflecting the significance of the sources used in determining fair value. The fair value hierarchy comprises the
following levels:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as
prices) or indirectly (derived from prices);
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
268
3.14 - Fair value hierarchy
31 Dec 2009
Description
Level 1
Level 2
Level 3
Total
Financial assets
AFS financial assets
Equity instruments
Other investments
104,414
104,414
101,143
3,271
152,471
152,471
61,470
91,001
4,617
4,617
4,617
-
261,502
261,502
66,087
101,143
94,272
Investments in financial instruments
AFS
Held-for-trading
15,171,861
15,171,861
15,067,840
104,021
-
40,969
40,969
-
15,212,830
15,171,861
15,067,840
104,021
40,969
Total assets at fair value
15,276,275
193,440
4,617
15,474,332
-
(2,331)
(2,331)
-
(2,331)
(2,331)
-
(93,082)
(93,082)
-
(93,082)
(93,082)
Total liabilities at fair value
-
(95,413)
-
(95,413)
OTHER RISKS
Operational risk
This regards the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external
events. This category of risk includes losses resulting from fraud, human error, business disruption, systems failures,
breach of contract and natural disasters. Operational risks includes legal risk, but not strategic and reputational risks.
To protect the Group from this form of risk, in line with the prudential supervisory requirements, issued by the Bank of Italy
in December 2006, and adopted by Poste Italiane SpA as benchmarks, the Company has formalised and agreed a
methodological and organisational framework to manage the operating risk related to the products/processes of
BancoPosta.
During 2009 the Board of Directors approved the guidelines for managing operational risk in relation to the BancoPosta
business, establishing policies and operational/organisational models for managing this type of risk. The guidelines for the
Company have been drawn up in line with this approved framework.
Reputational risk
Poste Italiane SpA’s business is by its nature exposed to elements of reputational risk, associated mainly with the
placement of index-linked bonds issued by other credit institutions and/or insurance policies issued by Poste Vita SpA.
In this respect, in July 2008, in accordance with the Markets in Financial Instruments Directive by the EU (Directive
2004/39/EC, “MiFID”), Poste Italiane SpA adopted the “consulting service” model, which is currently being implemented.
The crisis of 2008 had profound effects on the performance of all the financial instruments placed in the market, especially
those whose returns are magnified and are inevitably exposed to higher risk and volatility of their fair value.
Even though the Company has developed over time prudential policies in the customers’ best interests, which entails the
selection of domestic and foreign issuers solely with investment grade ratings, the situation prompted closer scrutiny, so
as to ensure full awareness of the performance of the products placed and the risks for the customers that, to this day,
characterize these products
In this regard, Poste Vita issued over the years Branch III index- and unit-linked policies that call for the investment of the
premiums paid in a structured bond or in mutual funds whose increase in value reflects on the value of the policies. For
this type of product issued prior to the introduction of ISVAP Regulation 32/2009, the Company does not guarantee capital
or a minimum return and, as such, the credit and financial risks associated with them are borne by the customer. In order
to protect its own good name and reputation, and those of its Group, as well as its credentials as a capable operator, the
Company constantly monitors developments in the risk profile. Particular attention was given to monitoring certain financial
instruments underlying index-linked policies issued in the period 2001-2002 by Programma Dinamico SpA, a securitisation
vehicle set up under Law 130/99 that matches the definition of control established in the combined provisions of IAS 27
and SIC 12. These instruments bring together different financial positions, including securitisation transactions and credit
and financial derivatives (CDOs – Collateralised Debt Obligations), whose performances were affected by the financial and
credit market crisis. Whilst it is true that, in accordance with the legal nature of the products in question, the related
investment risk is transferred to policyholders, the company assesses the need to restructure its portfolios in order to
safeguard its commercial interests, which could be prejudiced by widespread dissatisfaction among customers, and the
potential impact on its reputation as a result of a general expression of discontent.
I policies providing minimum returns guaranteed by the Company. This was done to allow policyholders to reduce their risk
exposure, in view of the changed scenario. The maturity of the contracts, which was originally set in 2012, was extended
to 31 December 2015 and the capital sum paid at such date was equal to 105% of the premium collected. The costs of
the conversion incurred through to 31 December 2009 have been accounted for in technical provisions. In addition, having
obtained the prior agreement of the regulator, in May 2009 the Company has sent the holders of “Programma Dinamico
Classe 3 A” policies, whose prices are above par at 31 December 2009, a letter in which it reminded policyholders that
they have the option of exercising their right of redemption early in order to exit an investment that, in the current financial
market crisis, is exposed to a particular degree of risk that was not foreseeable at the time of issue.
ISVAP Regulation 32, dated 11 June 2009, has introduced new rules governing index-linked policies. The Regulation
contains new rules for index-linked life assurance policies. In view of the number of defaults by major banks in 2008, the
insurance regulator believes it is necessary to take steps to protect policyholders, introducing certain standards aimed at
revisiting the part insurance companies play in creating products, taking on an active role in drawing up the proposed
indexation measures and in managing the investments necessary to hedge the risks assumed. In this regard, the
Regulation has, among other things, introduced a rule that states that the securities used to meet the obligations offered
may no longer represent the index underlying the policy, but only the company’s means of meeting its contractual
obligations. The standards introduced by the Regulation have thus made it easier for insurance companies to substitute
the assets in which they invest their technical provisions, on the basis of which the company assumes the risk of
insolvency of the issuer. As a result, policyholders may no longer be exposed to the counterparty risk relating to third party
entities, whilst they will continue to be exposed to the risk linked to the negative performance of the external index, which
may, in any event, be fully or partly neutralised where the insurance company decides to offer further capital or minimum
270
return guarantees. In this context, Poste Vita SpA has modified the structure of products issued during the year to comply
with the new rules, which do not alter the rights and obligations attached to policies issued prior to the entry into effect of
the new Regulation.
INFORMATION ABOUT THE GROUP
advantages in terms of improved liquidity and a reduction in the related risk. The system includes the five main subsidiaries,
and makes use, with regard to the banking channel, of zero balance cash pooling. In this way cash flows between the
current accounts of subsidiaries and the Parent Company are transferred on a daily basis.
FINANCIAL STRUCTURE
Poste Italiane SpA’s financial structure at 31 December 2009 is solid and balanced, and adequately protected from liquidity
or refinancing risks. Overall borrowings are primarily medium/long-term, except for bank overdrafts, which are of a limited
amount. Medium/long-term debt is sufficient to cover expected financial needs.
At the end of the reporting period the Company has unused uncommitted lines of 1,218 million euros. It also has unused
overdraft facilities in place, totalling 70.7 million euros, and bank guarantee facilities with a value of 99.5 million euros, of
which guarantees with a value of 35.4 million euros have been used in the interests of the Company and 7.3 million euros
in the interests of Group companies (note 37.4).
4 - PROPERTY, PLANT AND EQUIPMENT
The following table shows changes in property, plant and equipment in 2008 and 2009:
4.1 - Changes in property, plant and equipment
Operating Plant and
Land properties equipment
Cost
Carrying amount
Purchases
Adjustments
Reclassifications
Disposals
Depreciation
Impairments
Total changes
71,632
71,632
408
721
(468)
661
Cost
Carrying amount
72,293
72,293
Purchases
Adjustments (1)
Disposals (3)
Depreciation
Impairments
Total changes
608
495
(2,773)
(244)
(1,914)
Cost
Carrying amount
70,379
70,379
2,390,661 2,025,686
(677,716) (1,348,182)
(7,496)
(21,734)
1,705,449
655,770
28,950
15,030
(4,595)
(89,771)
(1)
(50,387)
Industrial
and
commercial
Leasehold
equipment improvements
257,851
(189,616)
(770)
67,465
106,867
14,311
(2,146)
(135,739)
(636)
(17,343)
17,014
(4)
(31)
(17)
(20,797)
(3,835)
2,418,053 2,092,277
(761,509) (1,432,204)
(1,482)
(21,646)
1,655,062
638,427
274,798
(210,398)
(770)
63,630
49,472
63
58,718
(5,399)
(92,126)
(12,550)
(1,822)
89,205
48,495
(1,039)
(136,026)
(705)
(70)
12,422
2,125
(3)
(17,497)
(2,953)
2,517,990 1,920,426
(850,769) (1,278,093)
(13,981)
(3,976)
1,653,240
638,357
289,352
(227,905)
(770)
60,677
Assets in the
course of
construction
and
Other prepayments
463,160 1,020,039
(361,325) (820,603)
(4)
101,835
199,432
Total
190,439
(2,913)
187,526
6,419,468
(3,397,442)
(32,917)
2,989,109
55,297
(1)
30,297
(230)
(77,800)
7,563
202,276
(25)
(78,993)
(14)
123,244
438,619
691
(5,121)
(7,700)
(349,385)
(671)
76,433
473,752 1,100,655
(355,386) (893,659)
(1)
(1)
118,365
206,995
310,770
310,770
6,742,598
(3,653,156)
(23,900)
3,065,542
38,304
43,800
(526)
(82,126)
(548)
61,072
(30)
(191,417)
(130,375)
268,955
528
183
(7,677)
(347,834)
(14,005)
(99,850)
210,022 1,176,826
(53,821) (970,378)
(4)
(1)
156,197
206,447
180,395
180,395
6,365,390
(3,380,966)
(18,732)
2,965,692
27,807
14,265
(230)
(25,278)
(34)
16,530
17,872
41,235
(466)
(20,059)
(750)
37,832
Adjustments (1)
Cost
Other liabilities
Total
495
495
98
(35)
63
-
-
-
-
(30)
(30)
593
(30)
(35)
528
Cost
Total
(2,773)
(2,773)
58,630
88
58,718
48,472
23
48,495
2,135
(10)
2,125
41,293
(58)
41,235
43,771
29
43,800
(191,417)
(191,417)
111
72
183
Disposals (3)
Cost
(244)
-
(8,263)
2,813
51
(309,528)
290,114
18,375
(3)
-
(322,895)
321,682
747
(5,904)
5,378
-
-
(646,837)
619,987
19,173
Total
(244)
(5,399)
(1,039)
(3)
(466)
(526)
-
(7,677)
272
At 31 December 2009 Property, plant and equipment includes assets located on land held under concession or subconcession, which is to be handed over free of charge at the end of the concession term, with a carrying amount of
179,850 thousand euros.
The principal changes during 2009 are described below.
Capital expenditure of 268,955 thousand euros primarily regards:
• 49,472 thousand euros relating primarily to the purchase and maintenance of properties owned by the Company,
including 31,398 thousand euros relating to the extraordinary maintenance of post offices, local head offices and mail
sorting offices, and 18,074 thousand euros regarding the purchase of premises used as post offices;
• 89,205 thousand euros relating to plant, with the most significant items regarding the installation of ATM machines
(31,770 thousand euros), the purchase of sorting equipment used at Sorting Centres (28,956 thousand euros), and plant
used in buildings (19,976 thousand euros);
• 12,422 thousand euros primarily relating to the purchase of security equipment for post office access and for the deposit
of cash and sundry documents;
• 17,872 thousand euros invested in plant (9,580 thousand euros) and structural improvements (8,292 thousand euros) for
properties held under lease;
• 38,304 thousand euros regarding Other assets, including 13,056 thousand euros for the purchase of new computer
hardware for post offices and head offices and the expansion of storage systems, 11,065 thousand euros for the
purchase of furniture and fittings in connection with the new layouts for post offices, and 7,104 thousand euros for the
purchase of other durable goods used in delivery activities;
• 61,072 thousand euros referring to investments in progress, with 29,749 thousand euros relating to the restyling of post
offices, 24,997 thousand euros to the restructuring of Sorting Centres, and 6,324 thousand euros for the purchase of
computer hardware yet to enter service.
Impairments of 14,005 thousand euros primarily regard:
• 9,550 thousand euros for the impairment of assets damaged by the earthquake that hit the Abruzzo region in April 2009.
Damage to the Company’s real estate and other assets is still being appraised and is almost entirely covered by
appropriate insurance policies. The likely payout, which is in the course of being quantified, will be accounted for in
income as soon as it is due for payment;
• 2,429 thousand euros relating to assets located on land held under concession or sub-concession, for which, on expiry
of the concession term, or whilst awaiting confirmation of renewal, any additional depreciation of assets to be handed
over free of charge at the end of the concession term is calculated on the basis of the probable residual duration of the
right to use the assets to provide public services, estimated on the basis of the framework agreements entered into with
the Public Sector, the status of negotiations with the grantors and past experience.
Reclassifications from Assets in the course of construction, totalling 191,417 thousand euros, primarily regard the purchase
cost of assets that became available and ready for use during the year. Above all, such assets regard completion of work
on the restructuring of Sorting Centres and installation of the related equipment, completion of the restructuring of
Company-owned and leased post offices premises, and the rollout of hardware held in storage.
Disposals, with a net carrying amount of 7,677 thousand euros, primarily regard the sale of operating properties (5,399
thousand euros) and the disposal or retirement of obsolete production plant (1,039 thousand euros, after use of the related
provisions for impairments made in previous years). The impact of these disposals on the income statement is described
in note 28.2.
5 - INVESTMENT PROPERTY
Investment property primarily regards former service accommodation owned by Poste Italiane SpA pursuant to Law 560
of 24 December 1993, and residential accommodation previously used by post office managers.
The following changes in investment property took place in 2009 and 2008:
5.1 - Changes in investment property
2009
2008
Cost
Carrying amount
147,584
(47,916)
(8,736)
90,932
180,410
(53,120)
(19,163)
108,127
Purchases
Disposals (2)
Depreciation
Reversals of impairments/(Impairments)
Total changes
288
(753)
(10,956)
(4,311)
1,817
(13,915)
652
(1,004)
(17,846)
(5,089)
6,092
(17,195)
Cost
Carrying amount
127,310
(45,172)
(5,121)
77,017
147,584
(47,916)
(8,736)
90,932
Fair value at 31 December
115,332
132,038
Cost
Total
(1,871)
653
465
(753)
(3,184)
1,021
1,159
(1,004)
Disposals (2)
Cost
Total
(18,691)
6,402
1,333
(10,956)
(30,294)
9,272
3,176
(17,846)
The fair value of Investment property at 31 December 2009 amounts to 115,332 thousand euros. This value includes
103,475 thousand euros representing the sale price applicable to the Company’s former service accommodation pursuant
to Law 560 of 24 December 1993, whilst the residual amount refers to internal estimates of market prices.
Most of the properties included in this category are subject to lease agreements classifiable as operating leases, given that
Poste Italiane SpA retains substantially all the risks and rewards of ownership of the properties. Under the relevant
agreements, tenants usually have the right to break off the lease with six months notice. Given the resulting lack of
certainty, the expected revenue flows from these leases are not referred to in these notes.
274
6 - INTANGIBLE ASSETS
The following table shows changes in intangible assets in 2008 and 2009:
6.1 - Changes in intangible assets
Industrial
patents
and intellectual
property rights
Concessions
licenses,
trademarks and
similar rights
Intangible
assets in
progress and
prepayments
Other
Total
Cost
Carrying amount
797,990
(578,698)
219,292
2,010
(1,826)
184
25,833
25,833
68,868
(68,502)
366
894,701
(649,026)
245,675
Purchases
Adjustments
Reclassifications
Disposals
Amortisation
Total changes
123,955
(54)
28,437
(143,247)
9,091
(91)
(91)
72,600
(38)
(25,769)
46,793
(366)
(366)
196,555
(92)
2,668
(143,704)
55,427
Cost
Carrying amount
950,328
(721,945)
228,383
2,010
(1,917)
93
72,626
72,626
68,868
(68,868)
-
1,093,832
(792,730)
301,102
Purchases
Adjustments (1)
Amortisation
Total changes
123,684
50,399
(140,553)
33,530
16
(93)
(77)
60,783
(103)
(50,321)
10,359
-
184,483
(103)
78
(140,646)
43,812
Cost
Carrying amount
1,124,411
(862,498)
261,913
2,026
(2,010)
16
82,985
82,985
68,868
(68,868)
-
1,278,290
(933,376)
344,914
-
-
(103)
(103)
-
(103)
(103)
50,399
50,399
-
(50,321)
(50,321)
-
78
78
Adjustments (1)
Cost
Other components of liabilities
Total
Cost
Total
Investment in intangible assets during 2009 amounts to 184,483 thousand euros, including 9,908 thousand euros regarding
software developed in-house and the related costs.
The increase of 123,684 thousand euros in Industrial patents, intellectual property rights, concessions, licences,
trademarks and similar rights, before amortisation for the year, primarily refers to the purchase and entry into service of
new software applications used by the Parent Company for innovative Mail services, WEB Oriented services and
BancoPosta services and in updating Asset and Configuration Management. New software applications were also
purchased for use in the maintenance, evolution and development of the technology infrastructures used in the sale of
BancoPosta services and in the updating of the platform used to provide multi-channel services.
During the year, the Company effected reclassifications from Intangible assets in progress to Industrial patents and
intellectual property rights (50,399 thousand euros), relating to the release and entry into service of new software
programmes and the development of existing programmes.
7 - INVESTMENTS
This item includes the following:
7.1 - Investments
Item
Investments in subsidiaries
Investments in associates
1,074,632
-
1,058,132
-
Total
1,074,632
1,058,132
Changes in investments in subsidiaries during 2008 and 2009 are as follows:
Investment
Subsidiaries
CLP ScpA
Poste Link Scrl (1)
Cons. Servizi di Telefonia Mobile ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
PosteMobile SpA
PosteShop SpA
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
Total
(1)
Additions
Subscriptions/
Balance at
Capital
1 Jan 2008 contributions Acquisitions
Reductions
Adjustments
Sales,
liquidations,
Balance at
mergers Revaluations Impairments 31 Dec 2008
12,000
263
84
70
61
191,410
7,705
120
1,739
17,551
5,815
1,808
818
563,481
12,789
131,575
105,460
7,401
10,000
319
-
-
-
-
(12,337)
-
12,000
263
84
70
61
191,410
2,769
120
1,739
27,551
5,815
1,808
818
563,481
319
12,789
131,575
105,460
1,052,749
17,720
-
-
-
(12,337)
1,058,132
On 17 November 2008 the Poste Link consortium was converted to a limited liability consortium.
276
Investment
Subsidiaries
CLP ScpA
Poste Link Scrl
Cons. Servizi di Telefonia Mobile ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
PosteMobile SpA
PosteShop SpA
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
Total
Additions
Subscriptions/
Balance at
Capital
1 Jan 2009 contributions Acquisitions
Reductions
Adjustments
Sales,
liquidations,
Balance at
mergers Revaluations Impairments 31 Dec 2009
12,000
263
84
70
61
191,410
2,769
120
1,739
27,551
5,815
1,808
818
563,481
319
12,789
131,575
105,460
3,000
13,500
-
-
-
-
-
12,000
263
84
70
61
191,410
5,769
120
1,739
41,051
5,815
1,808
818
563,481
319
12,789
131,575
105,460
1,058,132
16,500
-
-
-
-
1,074,632
Changes during 2009 regard payments of 3,000 thousand euros to Mistral Air Srl and 13,500 thousand euros to
PosteMobile SpA in order to recapitalise the companies.
The following transactions also took place without modifying the value of the Company’s direct interests in the companies
concerned:
• on 26 January Poste Italiane SpA’s Board of Directors approved the merger of the Poste Contact consortium, 70% owned
by Poste Italiane SpA, 15% owned by Postecom SpA and 15% by Postel SpA11, with and into Poste Link Scrl, with effect
for tax and accounting purposes from 1 January 2010. On 8 March 2010, following registration of the merger, completed
on 24 February 2010, the consortium was cancelled from the Companies’ Register;
• on 22 December the Board of Directors of SDA Express Courier SpA approved a capital increase via Poste Italiane SpA’s
contribution of all the shares held in the subsidiary, Poste Italiane Trasporti SpA.
On 25 January 2010, Poste Italiane SpA’s Board of Directors authorised coverage of the losses incurred by Mistral Air Srl
at 30 September 2009 and the establishment of an extraordinary reserve via the payment of 3,500 thousand euros. An
extraordinary general meeting of Mistral Air Srl’s shareholders voted to approve the transaction on 9 February 2010.
On 24 February 2010 the Parent Company transferred its interest in the wholly owned subsidiary, Poste Voice SpA, to
Poste Link Scrl, also an indirectly wholly owned subsidiary (70% Poste Italiane, 15% Postecom and 15% Postel) at a price
of 42 thousand euros, equal to the value of the equity of the transferred company at 31 January 2010.
11. On 8 October 2009 a general meeting of the Poste Contact consortium’s shareholders approved Postel SpA’s admission as a member of the consortium.
Following this, Postel SpA acquired a 15% interest in the consortium and Postecom SpA reduced its interest from 30% to 15%.
The following table shows a list of investments in subsidiaries at 31 December 2009:
7.4 - List of investment in subsidiaries
Name
CLP ScpA
Poste Link Scrl (2)
Consorzio per i Servizi
di Telefonia Mobile ScpA (2)
EGI SpA
Mistral Air Srl
Poste Energia SpA (2)
PosteMobile SpA (2)
PosteShop SpA
Poste Tributi ScpA
PosteTutela SpA
Poste Vita SpA (2)
Poste Voice SpA
Postecom SpA
Postel SpA
(1)
(2)
%
interest
Share
capital (1)
Profit/(Loss)
for the year
Carrying
amount
of Equity
Share
of Equity
Carrying
amount
31 Dec 2009
Difference
between
carrying
amount
and share
of Equity
100
51
70
70
12,000
516
120
200
15,122
499
5,197
49,377
516
969
7,251
49,377
263
678
5,076
12,000
263
84
70
37,377
594
5,006
51
55
100
120
103,200
530
19,941
(2,342)
120
417,278
(683)
61
229,503
(683)
61
191,410
5,769
38,093
(6,452)
100
100
100
100
70
100
100
100
100
100
100
120
1,020
2,582
2,582
2,583
153
561,608
120
6,450
20,400
54,600
377
803
(6,795)
(1,545)
771
107,878
(135)
(1,612)
19,505
(23,529)
788
5,419
9,415
5,806
2,583
7,177
1,070,734
53
39,770
138,400
81,198
788
5,419
9,415
5,806
1,808
7,177
1,070,734
53
39,770
138,400
81,198
120
1,739
41,051
5,815
1,808
818
563,481
319
12,789
131,575
105,460
668
3,680
(31,636)
(9)
6,359
507,253
(266)
26,981
6,825
(24,262)
Consortium fund in the case of consortia. The registered offices of subsidiaries are all located in Rome.
The figures for these companies have been calculated under IFRS, and are not, therefore, consistent with those contained in the financial statements
prepared under Italian GAAP.
The impairment testing of investments required by the related accounting standards has been conducted. The tests carried
out at 31 December 2009 were based on three-year plans, covering the period 2010-2012, for the relevant cash generating
units (the companies and their subsidiaries). The figures for the last year of the plan were used to project cash flows for
subsequent years over an indefinite time horizon. The Discounted Cash Flow (DCF) method was then applied to the
resulting amounts. In calculating value in use, NOPLAT (Net operating profit less adjusted taxes) was capitalised using an
appropriate growth rate and discounted using the related WACC (Weighted average cost of capital). A growth rate of 2%
was used in the tests carried out at 31 December 2009. Based on the available prospective information and the results of
the impairment tests conducted, and, in certain cases, based on the results of independent expert appraisals, no
impairments have been recognised. However, in view of the exceptional operating environment, which makes it very
difficult to make medium/long-term projections regarding macroeconomic and market conditions, the tests also prudently
took account of a possible deterioration in the parameters used in the preparing the long-term plans for Group companies
operating in the Postal Services segment. This involved making provisions accounted for in Other provisions liabilities and
charges. The suitability of the provisions made will be assessed on an ongoing basis.
278
8 - FINANCIAL ASSETS
At 31 December 2009 and 2008 financial assets break down as follows:
8.1 - Financial assets
Non-current
assets
Current
assets
Loans
Receivables
756,159
310,840
445,319
Equity instruments
Other investments
Item
Total
Current
assets
Total
590,894
198,340
392,554
1,347,053
509,180
837,873
929,935
355,320
574,615
597,223
146,486
450,737
1,527,158
501,806
1,025,352
257,107
66,087
100,280
90,740
4,395
863
3,532
261,502
66,087
101,143
94,272
337,905
38,970
199,906
99,029
213,157
209,072
4,085
551,062
38,970
408,978
103,114
-
-
-
-
1,116
1,116
1,116
1,116
1,013,266
595,289
1,608,555
1,267,840
811,496
2,079,336
Cash flow hedges
Total
Non-current
assets
LOANS AND RECEIVABLES
Loans
Loans refer entirely to amounts due from Group companies, and break down as follows:
Non-current portion:
• 295,000 thousand euros relating to two loans issued to Poste Vita SpA, in order to bring the subsidiary’s capitalisation
into line with the growth in premium income, in compliance with the specific regulations governing the insurance sector.
This lending consists of a subordinated loan of 250,000 thousand euros disbursed on 18 April 2008 and a subordinated
loan with a term to maturity of up to 7 years of 45,000 thousand euros disbursed on 12 May 2005;
• 15,840 thousand euros relating to three 5-year loans (6,000, 1,440 and 8,400 thousand euros, respectively), repayable in
six-monthly instalments paid in arrears, granted to Postel SpA on 31 March 2008, 30 September 2008 and 20 May 2009,
in order to fund the purchase of capital goods.
Current portion:
• 146,550 thousand euros in short-term loans and overdrafts on intercompany current accounts granted to subsidiaries,
paying interest on an arm’s length basis, as described in table 8.2, and including accrued interest income of 133 thousand
euros;
• 50,000 thousand euros relating to a subordinated loan granted to Poste Vita SpA, in order to bring the subsidiary’s
capitalisation into line with the growth in premium income, in compliance with the specific regulations governing the
insurance sector. This loan, disbursed on 29 December 2003, matures in 2010;
• 1,790 thousand euros in interest accrued at 31 December 2009 on loans to the subsidiaries, Poste Vita SpA and Postel
SpA, accounted for in the non-current portion above.
8.2 - Current portion of loans and receivables
Item
Direct subsidiaries
Mistral Air Srl
Poste Vita SpA
Postel SpA
Accrued interest
on non-current loans
Total
Loans
C/a overdrafts
Total
Loans
C/a overdrafts
Total
50,000
5,280
25,133
80,413
4,671
74,158
37,308
116,137
4,671
50,000
79,438
62,441
196,550
2,880
20,082
22,962
3,491
88,264
27,471
119,226
3,491
91,144
47,553
142,188
1,790
-
1,790
4,298
-
4,298
82,203
116,137
198,340
27,260
119,226
146,486
Receivables
Receivables break down as follows:
8.3 - Receivables
Item
Due from parent
repayment of loans accounted
for in liabilities
repayment of interest
on loan (Law 887/84)
interest on Poste Italiane SpA’s
liquidity
repayment of sums
in dormant accounts
Due from buyers
of service accommodation
Non-current
assets
Current
assets
436,413
Total
Non-current
assets
Current
assets
Total
333,087
769,500
565,518
340,030
905,548
436,413
309,502
745,915
565,518
298,190
863,708
-
11,665
11,665
-
29,434
29,434
-
7,838
7,838
-
12,406
12,406
-
4,082
4,082
-
-
-
8,906
-
8,906
9,097
-
9,097
Due from overseas postal operators
for international money orders
-
3,807
3,807
-
3,665
3,665
Due from others
-
56,337
56,337
-
107,719
107,719
Provisions for doubtful receivables
Total
-
(677)
(677)
-
(677)
(677)
445,319
392,554
837,873
574,615
450,737
1,025,352
At 31 December 2009 the fair value of receivables, totalling 745,915 thousand euros, due from the parent, the MEF, as
repayment of loans accounted for in liabilities, amounts to 777,094 thousand euros. At 31 December 2008 the fair value
of this item, which at the time had a carrying amount of 863,708 thousand euros, was 878,377 thousand euros. The
carrying amount of the other receivables in this category approximates to fair value.
Receivables due from the parent, the MEF, amounting to 769,500 thousand euros, primarily regard a receivable of 745,915
thousand euros relating to the residual principal to be repaid on loans accounted for in liabilities, and which, in accordance
with the laws that authorised the relevant loans, are to be repaid by the parent. This receivable is represented by the
amortised cost 12 of a receivable with a face value of 822,138 thousand euros, which is expected to be collected by 2016.
12. The amortised cost of the non-interest bearing receivable in question was calculated on the basis of the present value obtained using the risk-free interest
rate applicable at the date from which the incorporation of Poste Italiane SpA took effect (1 January 1998). The receivable is thus increased each year by
the amount of interest accrued and reduced by any amouts collected.
280
During 2009 the Company collected receivables with a face value of 149,565 thousand euros and estimated accrued
finance income on the present value of the receivables to be 31,772 thousand euros.
On the basis of the laws referred to below, these receivables are non-interest-bearing as they relate to loans for which only
the principal is to be repaid by the government, with the exception of the loan linked to Law 887/84 13.
The face value of these receivables is as follows.
Legislation
Law
Law
Law
Law
227/75 (mechanisation of PO services)
39/82 (subsequent changes to PO services)
887/84
41/86
Total
Face value of receivable
25,772
478,843
315,277
2,246
822,138
Such items represent repayments of loans formerly disbursed by Cassa Depositi e Prestiti, in accordance with the above
laws, to the former Post and Telecommunications Office in order to fund investment between 1975 and 1993. On
conversion of the former Public Entity into a joint-stock company, the accounts payable to Cassa Depositi e Prestiti (the
provider of the loans) and the accounts receivable from the parent, the MEF, to which the relevant laws assigned the
burden of repayment, were posted in the accounts. Poste Italiane SpA is liable for interest expense through to full
repayment of the loans. The difference of 155,237 thousand euros between the face value of the receivable and the face
value of the liability of 666,901 thousand euros (note 22.2), which corresponds to the amortised cost, is due to repayment
of the principal falling due in 2009, which was collected in full in February 2010.
Receivables due from the parent, the MEF, also include:
• receivables of 11,665 thousand euros relating to interest on the loan granted under Law 887/84 accruing in 2009, which
was acknowledged by the parent, the MEF, at the same time as collection in February 2010;
• receivables of 7,838 thousand euros due as accrued interest on the deposit of Poste Italiane SpA’s liquidity with the MEF
in 2009;
• 4,082 thousand euros for amounts returned to customers holding dormant accounts, the balances of which had
previously been paid into a specific fund set up by the MEF, pursuant to Presidential Decree 116/2007. As envisaged by
MEF Circular 11439 of 13 February 2009, the Parent Company, which has advanced the sums claimed to customers, will
apply to the Ministry for reimbursement during 2010.
Amounts due from others, totalling 56,337 thousand euros, include:
• guarantee deposits, totalling 55,660 thousand euros, accounted for by the Parent Company in current assets and
established during the year in favour of counterparties with whom the Company has executed asset swap transactions
(with collateral provided by a specific Credit Support Annex) as part of its cash flow hedge policy for BancoPosta (note
14.4);
• 677 thousand euros resulting from early termination of two Interest Rate Swaps carried out by the Company in
accordance with the related contracts terms. This amounts has been fully written down following the counterparty’s
declaration of bankruptcy in September 2008.
13. Interest was originally to be paid on this loan, but payments were suspended between 2001 and 2006, as a result of changes to the government’s budget.
Interest accrued to 31 December 2008 was, instead, paid to Poste Italiane SpA from 2007.
AVAILABLE-FOR-SALE FINANCIAL ASSETS
Available-for-sale financial assets break down as follows:
8.4 - Available-for-sale financial assets
Item
Equity instruments
Fiduciary deposits
Mutual investment funds
Other investments
66,087
101,143
38,970
408,978
91,001
3,271
100,476
2,638
Total
94,272
103,114
261,502
551,062
The following changes took place during the year:
8.5 - Changes in available-for-sale financial assets
2009
2008
Fixed
Equity
income
Other
Note instruments instruments instruments
through Equity
through profit or loss
Change in amortised cost
Accrued income
Reductions/settlement
of accrued income
[19.1]
38,970
54
408,978
100,000
24,725
498
(7,656)
2,338
-
(50)
863
261
66,087
Fixed
Equity
income
Other
Total instruments instruments instruments
103,114 551,062
- 100,054
Total
74,125
285
500,464
105,600 179,725
- 500,749
17,567
(7,954)
165
(2,611) (10,400)
2,338
(50)
1,124
-
(229)
8,642
(409,146)
(1,447) (410,593)
(27,486)
(100,064)
(1,322) (128,872)
101,143
94,272 261,502
38,970
408,978
103,114 551,062
1,447
(229)
10,089
Equity instruments
Equity instruments include:
• 60,808 thousand euros relating to the fair value of 350,628 class B shares in MasterCard Incorporated (at 31 December
2008, 350,628 shares with a fair value of 34,134 thousand euros). In accordance with the issuer’s memorandum of
association, the class B shares are convertible into class A shares, which are quoted on the New York Stock Exchange,
at an exchange ratio of one for one from May 2010. During the year Poste Italiane SpA carried out forward sales of
150,000 shares in its portfolio, with settlement in 2010, with further forward sales of 50,000 shares carried out in early
2010 (note 8.6);
• 4,500 thousand euros regarding the historical cost of the Company’s 15% interest in Innovazione e Progetti ScpA, the
value of which is unchanged with respect to the previous year;
• 662 thousand euros relating to the fair value of 11,144 class C shares in Visa Incorporated (at 31 December 2008: 11,144
shares with a fair value of 273 thousand euros). In accordance with the issuer’s memorandum of association, the class
C shares are non-transferable and are convertible into class A shares, which are quoted on the New York Stock Exchange,
at an exchange ratio of one for one from March 2011;
282
• 117 thousand euros regarding the historical cost of the 8.637% interest in Eurogiro Holding A/S (at 31 December 2008:
an interest of 9.091% with a value of 63 thousand euros). During the year Poste Italiane SpA took part in the company’s
capital increase, which resulted in an enlargement of the shareholder base.
This item regards fixed income instruments with a value of 101,143 thousand euros purchased by the Parent Company
and issued by Cassa Depositi e Prestiti SpA, via a private placement, with a face value of 100,000 thousand euros. The
instruments held in portfolio at 31 December 2008 (408,978 thousand euros) were redeemed in full at maturity.
Other investments
Other investments regard:
• A fiduciary deposit with a face value of 107,500 thousand euros, established in 2002 and expiring on 5 July 2012, and
paying interest at a floating rate: the fair value of the fiduciary deposit at 31 December 2009 is 91,001 thousand euros
(100,476 thousand euros at 31 December 2008).
The deposit was established when the official rating was assigned to Poste Italiane SpA and represents liquidity reserves
designed to guarantee Poste Italiane SpA’s bondholders and provide the rating agencies with a basis for their analysis 14.
At 31 December 2009 approximately 74% of the deposit is held as liquidity, with the remainder invested in bonds. The
Company has an option on the deposit which, in the event of exercise, guarantees the recovery of approximately 84%
of the face value. In addition, the depositor has entered into credit derivatives, where protection from certain issuers’
credit risk has been sold to third parties, with a notional value of 75 million euros.
• Units of equity mutual funds with a fair value of 3,271 thousand euros (2,638 thousand euros at 31 December 2008).
Changes in derivatives receivable and payable are as follows:
2009
Differentials due
of which:
Derivative assets
2008
Note
Cash flow
hedges
Fair value
hedges
Fair value
through
profit or
loss
[19.1]
[22.6]
(2,265)
4,099
(1,834)
(2,331)
-
-
(2,265)
1,768
(1,834)
2,398
(1,401)
(3,262)
12,419
(12,419)
-
(2,331)
-
(2,331)
(2,265)
-
-
(2,265)
-
(2,331)
-
(2,331)
1,116
(3,381)
-
-
1,116
(3,381)
[8.1]
[22.1]
Total
Cash flow
hedges
Fair value
through
Fair value
profit or
hedges
loss
Total
5,460
7,858
2,033 13,051
(7,493) (23,174)
14. The initial deposit (215,000 thousand euros) was calculated in 2002 based on the level of borrowing costs generated in a calendar year on Poste Italiane
SpA’s debt. In response to the subsequent reduction in borrowing costs, the face value of the investment has been progressively reduced by 107,500
thousand euros. In addition to guaranteeing a return, the deposit aims to provide additional assurances to the market and rating agencies. The
establishment of the deposit in 2002 helped Poste Italiane SpA receive ratings that resulted in benefits in terms of borrowing costs
CASH FLOW HEDGES
These hedges regard plain vanilla swaps, by which floating rates are exchanged for fixed rates.
Changes in fair value15 during the year and the value of accrued differentials reported in table 8.6 regard:
• seven Interest Rate Swaps (IRSs) expiring on 15 September 2009. These swaps, with a notional amount of 295 million
euros, were executed to hedge interest payments on the EIB loan of 400 million euros extinguished on maturity on 15
September 2009 (note 22.3);
• an Interest Rate Swap (IRS) expiring on 30 July 2009. The swap was executed to hedge cash inflows from fixed income
securities with a face value of 100 million euros, redeemed by the issuer on 30 July 2009.
Fair value hedges
The balance of liabilities consists of:
• 1,527 thousand euros representing the fair value of two forward sale contracts, with settlement on 30 April 2010,
regarding 150,000 class B shares in Mastercard Incorporated executed on 9 November and 2 December 2009 to hedge
the exposure of these shares to price risk;
• 804 thousand euros representing the fair value of two forward sale contracts for US dollars executed on 9 November and
7 December 2009 to hedge the sale price of the above 150,000 shares.
In early 2010 the Company agreed further forward sales of 50,000 class B shares in Mastercard Incorporated, settled on
30 April 2010. Foreign currency hedges were also executed in this regard.
9 - DEFERRED TAXES
The following table shows deferred tax assets and liabilities based on maturity:
9.1 - Deferred taxes
Item
Deferred tax assets
Total
550,164
(345,634)
553,770
(231,816)
204,530
321,954
The nominal tax rates are 27.5% for IRES and 3.90% for IRAP (+/- 0.92% as a result of regional surtaxes and/or relief).
The weighted average rate for the latter tax is 4.4%.
Changes in deferred tax assets and liabilities are shown below:
9.2 - Changes in deferred tax assets and liabilities
Item
2009
2008
321,954
78,675
(169,988)
(26,111)
150,027
236,057
(64,130)
-
204,530
321,954
The balance of deferred tax assets and liabilities recognised in profit and loss in the year under review includes non-recurring income deriving from recalculation by the Parent Company and certain subsidiaries of deferred taxes, as a result of the
15. The fair value of these derivative instruments is based on the present value of expected cash flows deriving from the differentials to be swapped.
284
realignment of the tax bases of assets and liabilities and their carrying amounts, as provided for by article 15 of the so-called Decreto Anticrisi (Legislative Decree 185) of 29 November 2008, as described more fully in note 35.
The balance of deferred tax assets and liabilities recognised in Equity consists of the tax effects of the change in reserves
described in note 19.1.
The following table shows a breakdown of changes in deferred tax assets and liabilities according to principal event that
generated the movement:
9.3 - Changes in deferred tax assets
Investment
property
Financial
assets and
liabilities
Accum.
adjustments
to assets
16,483
132,489
(2,955)
(10,152)
-
(7,059)
-
-
-
-
13,528
115,278
111,318
247,890
27,095
35,839
32
3,486
14,822
8
(24,352)
(5,952)
(27)
(378)
(4,944)
(2,298)
Item
(238)
recognised in profit or loss on realignment
13,290
Provisions
Trade
and other
receivables
Staff
costs
85,090
169,490
33,108
33,196
26,228
78,400
(6,013)
2,643
7,120
-
-
-
-
116,478
114,777
262,334
22,159
9,189
Other
Total
23 469,879
2,799
90,950
-
(7,059)
2,822 553,770
9,115
2,873
- (13,599)
-
7,120
11,937 550,164
Deferred tax assets represent the benefit expected to derive from reduced future tax charges due to temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts. They primarily reflect the expected
benefit of the future deductibility of certain provisions for liabilities (262,334 thousand euros), of adjustments to assets
(114,777 thousand euros), of the impairment and discounting of trade receivables (22,159 thousand euros), of accumulated
depreciation of investment property (13,290 thousand euros), and of amounts due to staff (9,189 thousand euros).
Deferred tax assets also reflect temporary differences arising between the tax bases of financial assets and liabilities and
their carrying amounts, as a result of application of IAS 39 (116,478 thousand euros).
9.4 - Changes in deferred tax liabilities
Deferred
gains
Discounted
staff
termination
benefits
Other
Total
55,863
19,997
75,982
1,530
319,852
302
(221)
(1,259)
(5,560)
(1,530)
441
-
96,819
-
(26,111)
-
70,708
(23,483)
-
-
(17,629)
- (145,548)
-
-
-
(13,637)
-
(13,637)
-
152,461
18,738
13,045
-
231,816
Intangible
assets
Financial
assets and
liabilities
143,299
23,181
8,709
Deferred tax expenses/(income) recognised
in profit or loss (franking of off-book deductions)
(104,436)
Deferred tax expenses/(income) recognised
in Equity (franking of off-book deductions)
-
Item
Property,
plant and
equipment
47,572
4,163
Deferred tax income/(expenses) recognised
in profit or loss on realignment
(46,887)
-
-
205
(7,604)
5,156
-
1,920
-
(122)
177,108
-
-
(44,312)
26,111
-
(91,321)
177,108
26,111
-
329,652
11,134
-
-
345,634
4,848
Deferred tax liabilities reflect the benefit obtained as the result of a lower current tax charge due to temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts. These liabilities primarily refer to taxable
temporary differences arising between the tax bases of financial assets and liabilities their carrying amounts, as a result of
application of IAS 39 (329,652 thousand euros). The increase during 2009 is due to changes in the fair value reserve
described in note 19.1. Deferred tax liabilities also derive from taxable temporary differences between the tax bases and
carrying amounts of property, plant and equipment (4,848 thousand euros), and from the deferral of gains (11,134 thousand
euros).
At 31 December 2009 and 2008 deferred tax assets and liabilities recognised directly in Equity are as follows:
9.5 - Deferred tax assets and liabilities recognised in Equity
Increases/(Decreases) in Equity
2009
2008
Item
Fair value reserve for available-for-sale financial assets
Cash flow hedge reserve for hedging derivatives
Actuarial gains/(losses) on staff termination benefits in 2008
Actuarial gains/(losses) on staff termination benefits from franking
of off-book deductions in previous years
(171,057)
1,069
-
(75,138)
(28,740)
26,111
-
13,637
Total
(169,988)
(64,130)
From 2009 actuarial gains or losses accruing on staff termination benefits within the limits established by tax regulations
give rise to the recognition of current taxes accounted for directly in Equity. For this reason, as described in notes 9.2 and
9.4, a portion of the reduced charge for deferred tax expenses in 2008, amounting to 26,111 thousand euros, deriving from
the Company’s actuarial losses for that year, was recognised in 2009 as a direct reduction in current tax expenses paid.
Current tax expenses on actuarial gains on staff termination benefits for 2009 amount to 13,709 thousand euros. As a
result, the total tax charge accounted for in Equity is 183,697 thousand euros.
10 - OTHER NON-CURRENT ASSETS
10.1 - Other non-current assets
Item
Note
Long-term portion of trade receivables due from Public Sector entities [11.2]
254,315
281,169
Long-term portion of receivables due from staff
under fixed-term contracts settlement of 2006
43,758
65,975
Long-term portion of receivables due from staff
under fixed-term contracts settlement of 2008
140,843
90,428
Long-term portion of receivables due from IPOST
under fixed-term contracts settlements of 2006-2008
51,384
-
Provisions for doubtful debts due from staff
(2,189)
(2,189)
233,796
154,214
Third-party deposits in Postal Savings Books
registered in the name of Poste Italiane SpA
3,101
3,248
2,954
3,123
494,166
441,754
Total
286
Trade receivables are described in note 11.
The long-term portion of receivables due from staff under fixed-term contracts settlements consists of salaries and the
relevant contributions to be recovered following the agreements of 13 January 2006 and 10 July 2008 between Poste
Italiane SpA and the labour unions, regarding the re-employment by court order of staff previously employed on fixed-term
contracts. As shown in the following table, these receivables regard the total residual present value of amounts due from
staff and the pension fund, IPOST, at 31 December 2009, totalling 302,937 thousand euros (after provisions for doubtful
debts). Amounts due from staff are recoverable in the form of variable instalments, the last of which is due in 2029. Under
an agreement reached with IPOST on 23 December 2009, contributions are to be recovered in straight-line six-monthly
instalments, the last of which is due in 2014.
10.2 - Receivables due from staff under fixed-term contracts settlement
Item
Non-current
assets
Current
assets
Total
Face
value
Non-current
assets
Current
assets
Total
Face
value
Receivables due from IPOST (3)
43,758
16,375
60,133
66,974
65,975
19,701
85,676
96,883
140,843
51,384
(2,189)
38,923
13,843
-
179,766
65,227
(2,189)
213,159
69,215
90,428
(2,189)
64,565
-
154,993
(2,189)
176,889
-
Total
233,796
69,141
302,937
154,214
84,266
238,480
(1)
(2)
(3)
Discounted on the basis of the forward interest rate curve for government securities in issue at 30 June 2006.
Discounted on the basis of the forward interest rate curve for government securities in issue at 31 December 2008 in the case of individual agreements
entered into in 2008, and on the basis of the forward interest rate curve for government securities in issue at 30 June 2009 for individual agreements
entered into in the first half of 2009.
Discounted on the basis of the forward interest rate curve for government securities in issue at 31 December 2009.
The current portion of 69,141 thousand euros is accounted for in Other current receivables and assets (note 13).
11 - TRADE RECEIVABLES
Trade receivables break down as follows:
11.1 - Trade receivables
Item
Customers
Subsidiaries
Associates
Parents
Total
Non-current
assets
Current
assets
254,315
254,315
2,569,988
271,101
153
1,124,197
3,965,439
Total
Non-current
assets
Current
assets
Total
2,824,303
271,101
153
1,124,197
4,219,754
281,169
281,169
2,179,752
250,493
45
903,515
3,333,805
2,460,921
250,493
45
903,515
3,614,974
CUSTOMERS
11.2 - Customers
Non-current
assets
Current
assets
Unfranked mail delivered on behalf
of third parties
Lease rentals due
due from customers
254,315
-
Total
Item
Total
Non-current
assets
Current
assets
Total
938,601
232,337
1,020,698
45,252
938,601
232,337
1,275,013
45,252
281,169
-
755,381
250,354
914,645
46,811
755,381
250,354
1,195,814
46,811
-
146,734
13,860
409,510
146,734
13,860
409,510
-
134,435
14,744
317,529
134,435
14,744
317,529
-
(237,004)
(237,004)
-
(254,147)
(254,147)
254,315
2,569,988
2,824,303
281,169
2,179,752
2,460,921
This regards 918,045 thousand euros in accrued fees for the management of postal savings accounts in 2009, with the
remainder regarding previous years.
231,506 thousand euros regards amounts due from overseas correspondents for postal services carried out on behalf of
overseas postal operators, whilst 831 thousand euros derives from international telegraphic services.
Ministries and government entities
These items regard amounts due from the following entities:
• Cabinet Office - Publishing department: 750,643 thousand euros, corresponding to a face value of 801,136 thousand
euros, relating to publisher tariff subsidies for the financial years from 2001 to 2009. The receivable is accounted for at
its present value to take account of the time it is expected to take to collect the amount due in accordance with the
regulations in force and the information available. For this reason, the sum of 254,315 thousand euros (corresponding to
a face value of 304,809 thousand euros) is classified in Other non-current assets (note 10.1). In accordance with a specific
Cabinet Office Decree issued in 2009, the collection of 44,449 thousand euros has been further postponed and is now
to be paid over the next seven years, resulting in recognition of a loss of 4,431 thousand euros as an effect of further
discounting of the sum due;
• 79,006 thousand euros due from INPS, including 73,979 thousand euros due for the payment of pensions and
attributable entirely to 2009;
• 72,250 thousand euros due from the tax authorities, primarily deriving from the postage of unfranked mail (17,247
thousand euros), the collection of tax returns (14,771 thousand euros), integrated mail services (11,726 thousand euros),
the collection of Government taxes (9,028 thousand euros), and the payment of tax rebates (8,029 thousand euros);
• 54,958 thousand euros due from the Ministry for Economic Development, including 51,232 thousand euros as
reimbursement of the costs associated with the management of property, vehicles and security (including 3,213
thousand euros in amounts accrued during the year);
• 44,734 thousand euros payable by the Ministry of Justice, primarily for the delivery of legal process (23,352 thousand
euros) and for the payment service for legal system expenses (19,229 thousand euros);
288
• 35,353 thousand euros due from the Ministry of Internal Affairs, including 17,704 thousand euros as payment for the
franking of mail on credit and 17,649 thousand euros for integrated notification services;
• 28,561 thousand euros due from the Municipality of Rome for the delivery of legal process;
• 15,665 thousand euros due from the Municipality of Milan, primarily for the delivery of legal process;
• 15,367 thousand euros due from Lazio Regional Authority, primarily for the delivery of legal process.
These receivables regard telegrams ordered by telephone (34,196 thousand euros) and other telegraphic services (11,056
thousand euros).
Unfranked mail delivered on behalf of third parties
This item regards receivables deriving from the delivery of unfranked mail on behalf of third parties, primarily regarding bulk
mail. As with the pre-existing Hybrid E-mail service, collection of these receivables is delegated to the authorised agents
who provide the service.
Lease rentals due
These receivables primarily derive from the lease of commercial and residential properties, and of units housing canteens
and bars.
Other trade receivables primarily include the following items:
• fees and charges due from current account holders, totalling 145,158 thousand euros;
• receivables deriving from the sale of insurance and banking products, and from personal loans, overdrafts and mortgages
disbursed on behalf of third parties (120,158 thousand euros);
• receivables deriving from unfranked mail on own behalf (37,886 thousand euros);
• receivables deriving from parcel post operations (18,057 thousand euros);
• receivables deriving from the distribution of telephone directories (12,277 thousand euros).
Item
Overseas postal operators
Public Sector entities
Private customers
Balance at
Net Deferred
1 Jan 2008 provisions revenues
Balance at
Net Deferred
Uses 31 Dec 2008 provisions revenues
Balance at
Uses 31 Dec 2009
For overdue interest
6,646
125,836
71,042
203,524
4,438
46,362
(1,583)
44,779
2,939
3,213
1,144 (3,417)
4,357 (3,417)
- (2,473)
6,646
175,411
67,186
249,243
4,904
1,613
(23,558)
1,914
(20,031)
2,861
3,213 (1,426)
970
(701)
4,183 (2,127)
- (2,029)
8,259
153,640
69,369
231,268
5,736
Total
207,962
47,718
4,357 (5,890)
254,147
(17,170)
4,183 (4,156)
237,004
Net provisions (releases of provisions) for doubtful debts are accounted for in the income statement in Other operating costs
(note 33.1), or, if referring to receivables accruing during the year, via deferral of the related revenues. Provisions regarding
amounts due from Public Sector entities regard amounts that may not be recoverable as a result of legislation restricting public
spending, delays in payment and problems at debtor entities. A portion of these provisions, totalling 26,490 thousand euros,
was released to the income statement in 2009, following collection of certain items originally held to be unrecoverable.
DIRECT AND INDIRECT SUBSIDIARIES
Trade receivables due from subsidiaries are as follows:
11.4 - Trade receivables due from subsidiaries
Name
Direct subsidiaries
CLP ScpA
Consorzio per i Servizi di Telefonia Mobile ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
Indirect subsidiaries
Docutel SpA
Italia Logistica Srl (1)
Poste Assicura SpA
PostelPrint SpA
Uptime SpA (2)
Total
2,665
3,405
30
982
555
783
698
426
2,431
1,223
342
35,377
98
1,812
197,914
11,851
6,491
2,944
9,452
2,817
30
839
496
319
654
270
4,032
724
359
42,340
88
757
169,821
10,952
3,065
1,968
21
1
823
63
166
-
3
25
9
1,122
62
249
40
271,101
250,493
Joint venture.
(2)
The related shareholder agreements expired in 2009, meaning that the company no longer qualifies as a joint venture, but that the Company continues to
exert significant influence.
(1)
Trade receivables include:
• Postel SpA (183,260 thousand euros), mainly relating to receivables deriving from the delivery of Bulk Mail by Poste
Italiane SpA and collected by the subsidiary;
• Poste Vita SpA (33,634 thousand euros), largely regards fees deriving from the sale of insurance policies through Poste
Italiane SpA’s post offices.
ASSOCIATES
This item amounts to 153 thousand euros and refers to the indirect associate, Docugest SpA.
290
PARENTS
Amounts receivable entirely regard trade receivables due from the Ministry of the Economy and Finance. The following
table shows a breakdown:
11.5 - Trade receivables due from parents
Item
841,503
201,778
109,064
36,322
6,026
6,734
(77,230)
469,673
343,157
60,233
56,037
6,950
21,484
(54,019)
1,124,197
903,515
Universal Service
Remuneration of current account deposits
Publisher tariff and electoral subsidies
Payment for delegated services
Payment for distribution of euro coins
Other
Net provisions for doubtful debts due from parents
Total
Universal Service subsidies include 371,830 thousand euros representing the amount accrued during 2009, 363,646
thousand euros referring to the amount accrued in 2008, and 33,642, 63,722 and 8,663 thousand euros regarding residual
amounts accrued in 2007, 2006 and 2005. Whilst awaiting finalisation of a number of addenda to the Contratto di
Programma (Planning Agreement) for the period 2006-2008 dated 17 September 2008, and due to restrictions on public
spending, no amounts in the form of Universal Service subsidies were collected in 2009.
The remuneration of current account deposits refers entirely to amounts accruing in 2009 and almost entirely regards the
deposit of funds deriving from accounts opened by Public Sector entities.
Electoral subsidies include 67,441 thousand euros accruing in 2009, with the remainder attributable to previous years. At
31 December 2009 these receivables have not been budgeted for by the Government.
Payments for delegated services regard fees for treasury services carried out on behalf of the State under the recently
renewed Agreement with the MEF. 28,350 thousand euros regards amounts accruing in 2009, which 7,972 thousand euros
regards the residual amount due for 2008 and 2007.
Payment due for the distribution of euro coins includes 6,026 thousand euros for the supply and delivery of euro
converters, carried out at the time on behalf of the Cabinet Office. As in 2008, these receivables have not been budgeted
for by the Government.
Other receivables due from parents essentially refer to the transport and franking of mail on credit and services linked to
the “Social Card”.
Item
Balance at
Deferred
1 Jan 2008 Provisions revenues
7,874
46,145
-
Uses
Balance at
31 Dec 2008
Provisions
-
54,019
23,211
Deferred
Balance at
revenues Uses 31 Dec 2009
-
-
77,230
As in 2008, provisions for doubtful debts due from parents take account, overall, of the potential impact of legislation and other
policies regarding the government’s management of the public finances, which could make it difficult to collect receivables
recognised on the basis of legislation, contracts and agreements in force at the time of recognition. The provisions reflect the
best estimate of unrecoverable amounts in view of the fact that these receivables have not been budgeted for by the
government and based on the related financial effects.
12 - CURRENT TAX ASSETS
A breakdown is as follows:
12.1 - Current tax assets
Item
IRES credits
Credit due to claim for IRES rebate
37,702
3,594
26,987
Total
37,702
30,581
Under IAS 12 – Income taxes, IRES and IRAP credits are accounted for less the corresponding Current tax liabilities, given
that they are taxes applied by the same tax authority to the same taxable entity, which has a legally enforceable right to
offset and intends to exercise this right.
The credit due to a claim for an IRES rebate not offset at 31 December 2009, totalling 37,702 thousand euros (including
1,416 thousand euros deriving from the tax consolidation arrangement), refers to excess taxation paid by the Company as
a result of the non-deductibility of 10% of IRAP between 2004 and 2007. The right to a rebate of 26,987 thousand euros
for the period 2004-2006 was recognised in 2008, as the specific claim filed previously was upheld pursuant to art. 6 of
the Law Decree of 29 November 2008, converted into Law 2 of 28 January 2009. The right to a rebate of a further 10,715
thousand euros (including 445 thousand euros deriving from the tax consolidation arrangement) was recognised in 2009
following submission of a claim for 2007.
13 - OTHER CURRENT RECEIVABLES AND ASSETS
13.1 - Other current receivables and assets
Name
Prepaid taxes
Provisions for doubtful debts due from others
Accrued income and prepaid expenses from trading transactions
Total
232,186
339,860
(130,878)
1,086
3,951
203,206
317,022
(110,867)
1,989
3,437
446,205
414,787
PREPAID TAXES
These primarily include 226,958 thousand euros in advances that the Company has paid to the tax authorities, including 188,810
thousand euros in stamp duty to be paid in virtual form in 2010, and 38,148 thousand euros as withholding tax on interest paid
to current account holders for 2009.
RECEIVABLES DUE FROM OTHERS
These primarily regard:
• 92,379 thousand euros (69,574 thousand euros at 31 December 2008) payable to BancoPosta by the heirs of INPS
pensioners, following the collection of pension payments after the death of the pensioners concerned;
292
• 69,141 thousand euros (84,266 thousand euros at 31 December 2008) relating to the current portion of the receivable
described in note 10.2 relating to pay and contributions and due from staff previously employed on fixed-term contracts,
who have been subsequently re-employed after acceptance of the union agreements of 13 January 2006 and 10 July 2008;
• 63,158 thousand euros deriving from the recharging of third-party postal current account holders of stamp duty paid by
the Company in virtual form in accordance with existing legislation (63,157 thousand euros at 31 December 2008);
• amounts to be recovered by BancoPosta from the holders of postal savings books, totalling 14,929 thousand euros
(16,530 thousand euros at 31 December 2008), due to transactions in the process of being settled;
• 13,079 thousand euros in amounts stolen from the Company in December 2007 as a result of an attempted fraud. This
amount is currently held by an overseas bank and may only be recovered once completion of the necessary legal
formalities enables it to be released and returned to Poste Italiane SpA. The estimated time it will take to collect this
receivable was taken into account when updating provisions for doubtful debts for 2009;
• 12,327 thousand euros (22,694 thousand euros at 31 December 2008) due from ministries and Government entities in
the form of pay and contributions for personnel seconded to them by Poste Italiane SpA16.
PROVISIONS FOR DOUBTFUL DEBTS DUE FROM OTHERS
13.2 - Changes in provisions for doubtful debts due from others
Balance at
1 Jan 2008
Provisions
Uses
Balance at
31 Dec 2008
Provisions
Uses
Balance at
31 Dec 2009
Sundry receivables attributable to BancoPosta
Public Sector entities for sundry services
Other
68,685
20,325
10,480
17,437
(6,779)
737
(18)
-
86,104
13,546
11,217
21,374
(2,095)
902
(170)
-
107,308
11,451
12,119
Total
99,490
11,395
(18)
110,867
20,181
(170)
130,878
Item
Provisions for sundry receivables attributable to BancoPosta regard amounts that the Company is expected to have
difficulty in recovering from private customers for transactions to be settled.
Provisions for amounts due from Public Sector entities regard accrued payments for the Parent Company’s staff seconded
to ministries and Public Sector entities. A portion of these provisions was released to the income statement in 2009,
following collection of certain items originally held to be unrecoverable.
OTHER AMOUNTS DUE FROM SUBSIDIARIES
Other amounts due from parents break down as follows:
13.3 - Other amounts due from subsidiaries
Name
1,075
11
1,978
11
Direct subsidiaries
EGI SpA
PosteShop SpA
PostelPrint SpA
Total
-
-
1,086
1,989
This item includes IRES of 1,007 thousand euros payable by EGI SpA to Poste Italiane SpA as the consolidating entity for
the tax consolidation arrangement, in addition to other residual items.
16. During 2009 the number of seconded staff gradually fell from 24 at 1 January to 18 at 31 December.
14 - ASSETS AND LIABILITIES ATTRIBUTABLE TO BANCOPOSTA
These items refer to the balances of financial transactions carried out by the Company pursuant to Presidential Decree
144/2001. In particular, these transactions regard management of the liquidity deposited in postal current accounts, carried
out under the BancoPosta name, but subject to restrictions on the investment of such liquidity in compliance with the
applicable legislation. The transactions also regard the management of collections and payments in the name and on behalf
of third parties. These include the collection of postal savings (savings books and savings certificates), carried out on behalf
of Cassa Depositi e Prestiti and the MEF, and services delegated by Public Sector entities. Among other things, these
transactions involve the use of cash advances from the Italian Treasury and the recognition of receivables awaiting financial
settlement. The specific agreement with the MEF, which was renewed by Ministerial Decree on 18 June 2009 and is valid
until 31 December 2010, requires BancoPosta, from 1 July 2009, to provide daily statement of cash flows, with a delay of
one bank working day with respect to the transaction date. Until 30 June 2009, under the previous agreement the delay
was 3 working days.
The liquidity deriving from current account deposits by Public Sector entities must be invested with the MEF and is
remunerated at a floating rate in accordance with the specific agreement with the MEF approved by Ministerial Decree on
7 April 2009 and valid until 31 December 2010. This agreement applies the European Commission’s Decision of 16 July
2008.
In compliance with the 2007 Budget Law, with effect from 2007 the Company is required to invest the funds raised from
deposits paid into postal current accounts by private customers in euro area government securities.
The above agreement with the MEF for treasury services, which was renewed on 18 June 2009, has confirmed that a
limited portion of the funds deriving from deposits paid into postal current accounts by private customers may be invested
in a specific account held at the MEF (the so-called Buffer Account). This is done with the aim of ensuring a certain flexibility
with regard to investments in view of daily movements in amounts payable to current account holders. These deposits are
remunerated at a rate equal to the average yield on Short-term Italian Treasury Certificates (BOT ) in the relevant six-month
period.
ASSETS ATTRIBUTABLE TO BANCOPOSTA
These assets are shown less the Group’s liquidity (note 14.7) and include:
14.1 - Assets attributable to BancoPosta
Item
Other receivables
28,458,973
40,969
8,320,632
839,808
706,910
2,660,696
26,765,256
67,352
6,336,538
2,775,665
1,434,826
2,319,734
Total assets attributable to BancoPosta
Poste Italiane SpA’s own liquidity held in postal current accounts
41,027,988
(1,515,829)
39,699,371
(790,180)
Total
39,512,159
38,909,191
This item regards investments in fixed income euro area government securities with a face value of 27,307,350 thousand
euros, including 27,101,350 thousand euros invested in Italian government bonds, 115,000 thousand euros invested in
French government bonds (“OAT ”) and 91,000 thousand euros invested in German government bonds.
294
Investments break down as follows:
14.2 - Investments in securities
Maturing
within
12 months
between 1
and 5 years
over
5 years
Total
Face
value
1,309,278
926,088
5,263,433
5,384,927
6,053,282
6,682,648
12,625,993
12,993,663
12,519,800
12,630,200
551,195
2,786,561
498,524
11,146,884
95,881
12,831,811
1,145,600
26,765,256
1,150,000
26,300,000
Held-to-maturity (HTM) (1)
Available-for-sale (AFS) (2)
Held for trading (FVPL) (3)
1,320,679
1,322,486
104,021
2,747,186
5,423,361
5,777,388
11,200,749
6,543,072
7,967,966
14,511,038
13,287,112
15,067,840
104,021
28,458,973
13,114,650
14,092,700
100,000
27,307,350
Securities
Held-to-maturity (HTM) (1)
Available-for-sale (AFS) (2)
Held for trading (FVPL) (3)
HTM: Held to maturity.
AFS: Available for sale.
(3)
FV vs. CE: Fair value rilevato a Conto economico
(1)
(2)
The composition of this portfolio aims to replicate the financial structure of deposits paid into postal current accounts by
private customers. Trend analysis for forecasting and prudential purposes is based on appropriate statistical models
developed by a leading market player. An Asset & Liability Management system has been created to management the
match between customer deposits and investments.
Changes in investments in securities in 2008 and 2009 were as follows:
14.3 - Changes in investments in securities
HTM
AFS
FVPL
Total
Face
value
Carrying
amount
Face
value
Fair
value
Face
value
Fair
value
Face
value
Carrying
amount
Balance at 31 December 2007 13,000,000
13,117,177
12,700,000
12,727,697
-
-
25,700,000
25,844,874
Purchases
1,772,700
Sales
(110,000)
Redemptions
(2,142,900)
Increase/(Decrease) in accrued income
-
1,778,988
(113,837)
(2,142,900)
(15,263)
(12,871)
14,699
-
7,229,400
(5,808,100)
(1,491,100)
-
7,247,463
(5,807,798)
(1,491,100)
613
(9,337)
37,750
288,375
2,150,000 2,125,834
(1,000,000) (984,282)
936
3,112
11,152,100
(6,918,100)
(3,634,000)
-
11,152,285
(6,905,917)
(3,634,000)
(14,650)
(21,272)
52,449
291,487
12,625,993
12,630,200
12,993,663
1,150,000 1,145,600
26,300,000
26,765,256
Purchases
3,220,850
Sales
(1,326,000)
Redemptions
(1,300,000)
Increase/(Decrease) in accrued income
-
3,281,112
(1,367,855)
(1,300,000)
32,211
11,760
3,891
-
4,208,750
(1,835,000)
(911,250)
-
4,299,497
(1,883,985)
(911,250)
(15,778)
(717)
34,430
551,980
2,923,750 2,928,565
(3,773,750) (3,770,351)
(200,000) (200,000)
325
(118)
10,353,350
(6,934,750)
(2,411,250)
-
10,509,174
(7,022,191)
(2,411,250)
16,433
11,368
38,321
551,862
13,287,112
14,092,700
15,067,840
27,307,350
28,458,973
Securities
100,000
104,021
At 31 December 2009 the fair value of the held-to-maturity portfolio, accounted for at amortised cost, is 13,932,780
thousand euros (including 201,446 thousand euros in accrued daily interest payments). During the year under review the
Company substituted investments in German Bunds with a face value of 338,000 thousand euros and in French OATs with
a face value of 988,000 thousand euros with Italian Long-term Treasury Certificates (BTPs) with the same face value and
residual term to maturity. The accounting treatment adopted complies with IAS 39.
The fair value of the available-for-sale portfolio is 15,067,840 thousand euros (including 193,883 thousand euros in accrued
daily interest payments). A fair value gain of 551,980 thousand euros was recorded during the period under review and
recognised in the relevant Equity reserve.
The following changes in Securities held for trading at fair value through profit or loss took place during the period. These
transactions were executed with the primary aim of investing temporary spikes in deposits. In particular:
• spot purchases with a face value of 1,965,000 thousand euros were settled (including purchases with a value of 300,000
thousand euros already concluded in 2008);
• sales of securities with a face value of 2,815,000 thousand euros were settled, including 150,000 thousand euros in spot
transactions, 1,450,000 thousand euros in forward transactions executed in 2008, and 1,215,000 thousand euros in
forward transactions executed in 2009;
• securities purchased during the year, with a face value of 200,000 thousand euros, reached maturity;
• the notional value of forward purchases of securities with a face value of 958,750 thousand euros has been recognised;
these were subsequently sold on the same terms in response to changed market conditions, in the belief that it was
appropriate to proceed with their substitution.
At 31 December 2009 the fair value of other securities held in portfolio, having a face value of 100,000 thousand euros,
104,021 thousand euros (including 1,859 thousand euros in accrued daily interest payments). Changes in the fair value of
securities recognised in profit or loss in 2009 amount to a loss of 118 thousand euros.
Changes in derivative financial instruments during the year are as follows:
Cash flow hedges
Forward purchases
notional
fair value
FVPL
Asset swaps
notional
Forward purchases
fair value
notional fair value
Forward sales
Total
notional fair value
notional
fair value
-
-
-
-
-
-
-
-
-
-
3,373,150
34,016
1,674,950
(8,972)
-
-
3,970,000
(7,149)
9,018,100
17,895
Gains/(losses) through
profit or loss (*)
-
(3,196)
-
-
-
-
-
300
-
(2,896)
(2,414,400)
19,750
-
12,929
-
-
(2,520,000)
4,769
(4,934,400)
37,448
958,750
50,570
1,674,950
3,957
-
-
1,450,000
(2,080)
4,083,700
52,447
Discontinued CFHs
(958,750)
(50,570)
-
-
958,750
50,570
-
-
-
-
2,802,850
49,854
2,458,750
(50,431)
-
9,316
2,273,750
(27,826)
7,535,350
(19,087)
Gains/(losses) through
profit or loss (*)
-
7,520
-
(16,776)
-
-
-
-
-
(9,256)
(2,224,850)
(16,405)
(1,515,000)
(29,825)
(958,750)
(59,886)
(3,623,750)
29,899
(8,322,350)
(76,217)
578,000
40,969
2,618,700
(93,075)
-
-
100,000
(7)
3,296,700
(52,113)
578,000
40,969
-
-
-
-
-
-
578,000
40,969
-
-
2,618,700
(93,075)
-
-
100,000
(7)
2,718,700
(93,082)
Including:
Derivative assets
(*)
Gains and losses recognised in profit or loss refer to differentials accruing on asset swaps and any ineffective portions of hedges classified in Other income
and Other expenses from financial activities. Fair value gains and losses on financial instruments measured at fair value through profit or loss are also
accounted for separately in these income statement items.
(**)
Transactions settled include forward transactions settled, accrued differentials and the extinguishment of asset swaps linked to securities sold.
296
During 2009 the Company carried out the following transactions in relation to cash flow hedges:
• the extinguishment of forward purchases outstanding at 31 December 2008 with a notional value of 958,750 thousand
euros, and resulting from discontinued17 cash flow hedges, with reclassification of the hedges to derivative financial
instruments at fair value through profit and loss (note 14.3);
• forward purchases (cash flow hedges of forecast transactions) with a total notional value of 2,802,850 thousand euros,
including 578,000 thousand euros yet to mature at 31 December 2009;
• the execution of asset swaps on securities purchased during the period and with a notional value 2,458,750 thousand
euros, and the extinction of asset swaps on securities sold, which were already protected by cash flow hedges, with a
notional value of 1,515,000 thousand euros; as a result of these transactions, at 31 December 2009 the Company reports
outstanding assets swaps with a total notional value of 2,618,700 thousand euros, with which it has purchased a fixed
rate of 4.83% (the weighted average of the rates provided for in the contracts) and sold a floating rate on Italian Longterm Treasury Certificates indexed to inflation (BTP€i).
These instruments recorded an overall decrease in fair value of 577 thousand euros during the period, which is reflected
in the cash flow hedge reserve.
Finally, with regard to derivative financial instruments measured at fair value through profit or loss, in addition to the above
discontinued hedges, carried out via forward sales, forward sales with a total notional value of 2,665,000 thousand euros
were settled during 2009. These transactions are described in the note to Financial instruments classified as at fair value
This item includes liquidity, amounting to 6,804,803 thousand euros, deriving from the postal current account deposits of
Public Sector entities transferred to the parent under the restriction established by the Regent’s Decree of 22 November
1945. It also includes 1,515,829 thousand euros in deposits (the so-called Buffer Account) provided for in the above change
to the Agreement with the MEF approved by the Ministerial Decree of 14 December 2007.
14.5 - Amounts receivable from/(payable to) the Italian Treasury
Item
882,544
(729,443)
3,004,733
(892,058)
153,101
2,112,675
Ministry of Justice
29
686,678
(21,348)
684,338
Total
839,808
2,775,665
Amounts receivable from to Treasury
MEF postal current accounts and other payables
Sub-total
The net balance of amounts payable to and receivable from the Italian Treasury is represented by advances from the MEF
to meet the cash requirements of post offices, less transfers of deposits and any excess liquidity by the Company. At 31
December 2009 the credit balance of this item has decreased with respect to 31 December 2008, primarily due to the
reduction in the delay in reporting to the MEF from 1 July 2009, as described in note 14 above.
17. Interruption of the application of hedge accounting following a decision by management, or due to the early sale or extinguishment of the hedged or
hedging instrument, and the consequent application of a different accounting treatment, as required by the relevant IFRS.
Other receivables
Other receivables primarily relate to bank and postal cheques and bankers’ drafts (346,211 thousand euros), and amounts
due from customers in the form of withdrawals from ATMs yet to be registered on their accounts (84,007 thousand euros).
Cash and cash equivalents attributable to BancoPosta
Item
Cash in hand
Cheques
Bank deposits
2,627,251
124
33,321
2,197,948
566
121,220
Total
2,660,696
2,319,734
Cash essentially regards cash in hand held at post offices and by companies that provide cash transportation services
whilst awaiting transfer to the Italian Treasury.
LIABILITIES ATTRIBUTABLE TO BANCOPOSTA
Liabilities attributable to BancoPosta are accounted for after deducting Poste Italiane SpA’s own liquidity held in postal
current accounts in the names of consolidated companies. These liabilities break down as follows:
14.7 - Liabilities attributable to BancoPosta
Item
Note
[14.4]
39,473,727
70,766
290,904
93,082
38,013,829
572,456
580,478
14,905
Total liabilities attributable to BancoPosta
(Amounts payable to Poste Italiane SpA as a current account holder)
39,928,479
(2,118,383)
39,181,668
(1,975,579)
Total
37,810,096
37,206,089
Other payables
These payables regard amounts due to Gruppo Poste Italiane companies, totalling 96,882 thousand euros (99,223 thousand
euros at 31 December 2008). This includes 23,880 thousand euros deposited in postal current accounts by Poste Vita SpA
(38,550 thousand euros at 31 December 2008). The increase in the overall balance with respect to 31 December 2008 is
due to an increase in deposits by private customers.
This item represents the balance of withdrawals less deposits during the last day of 2009 and cleared on the first day of
the subsequent year. The balance at 31 December 2009 consists of 86,936 thousand euros payable to Cassa Depositi e
298
Prestiti (692,650 thousand euros at 31 December 2008) and a receivable due from the MEF for issues falling within its
competence, totalling 16,170 thousand euros (120,194 thousand euros at 31 December 2008).
Other payables
Other payables primarily regard 215,104 thousand euros in cheques presented for payment into postal savings books.
Amounts payable to Poste Italiane SpA as a current account holder
At 31 December 2009 Poste Italiane SpA’s liquidity held in postal current accounts to be deducted from BancoPosta’s
liabilities amounts to 2,118,383 thousand euros. This amount is normally represented by demand deposits with the MEF
held in the so-called Buffer Account, totalling 1,515,829 thousand euros (note 14.1), and investments in securities, totalling
602,554 thousand euros, deriving from deposits in the form of financial instruments not subject to investment restrictions
(note 22.6).
15 - CASH AND CASH EQUIVALENTS
Item
Bank and Postal Office deposits
Cash in hand
Postal deposits invested in Assets attributable to BancoPosta
Total
-
2,189,542
11,576
2,201,118
(602,554)
485,572
2,147,871
10,440
2,158,311
(1,185,399)
1,598,564
972,912
1,598,564
1,458,484
Escrow account (Ec decision of 16 july 2008)
In execution of the European Commission’s Decision of 16 July 2008 regarding State aid18, the amounts deposited in a specific
fixed-term bank account in 2008 were paid to the MEF on 15 January 2009.
18. This regards a complaint by the Italian Bankers’ Association (ABI) in December 2005, alleging that Poste Italiane SpA had benefited from State aid,
including with regard to the remuneration received on postal current account deposits, which the Company is required to deposit with the MEF. With
regard to the method of calculation of this remuneration, on 16 July 2008 the European Commission issued the above Decision finding against the
arguments submitted by the Italian authorities. The Commission maintains that the level of the interest rates paid to the Company between 1 January
2005 and 31 December 2007 (pursuant to art. 1, paragraph 31 of Law 266 of 23 December 2005, the “2006 Budget Law”), in terms of both the method
of calculation and the level of movement in the base rate, are higher than those that would be paid by a “private borrower”. The Commission, therefore,
found that the above remuneration constitutes State aid, as being incompatible with art. 88, paragraph 3 of the EU Treaty. The Italian government is thus
required to recover the related sum from Poste Italiane SpA.
Cash is primarily deposited in postal current accounts. In 2009 these deposits were remunerated on the basis of the yield
on short-term deposits with the MEF held in the so-called Buffer Account (note 14). Remuneration of these cash deposits
is shown separately in Finance income (note 34.1), as opposed to revenue deriving from the investment of deposits from
third parties (note 26.4).
Bank and post office deposits include 25,874 thousand euros that has been frozen as a result of court orders relating to a
number of legal actions.
Postal deposits invested in Assets attributable to BancoPosta reflect the fact that, in compliance with the provisions of the
2007 Budget Law, funds deriving from deposits paid into postal current accounts by private customers, and therefore also
the liquidity of Group companies held in postal current accounts (note 14.7), are invested in euro area government
securities, which are accounted for in Assets attributable to BancoPosta (note 14.1).
16 - NON-CURRENT ASSETS HELD FOR SALE
16.1 - Non-current assets held for sale
Item
2009
2008
Cost
Impairments
Carrying amount
6,749
(2,118)
(1,159)
3,472
13,703
(265)
(12,895)
543
Reclassifications of non-current assets (1)
Disposals (2)
Reclassification from provisions
Total changes
492
(2,679)
(2,187)
3,457
(528)
2,929
Cost
Impairments
Carrying amount
2,687
(937)
(465)
1,285
6,749
(2,118)
(1,159)
3,472
Cost
Total
1,681
(724)
(465)
492
6,734
(2,118)
(1,159)
3,457
Disposals (2)
Cost
Total
(5,743)
1,905
1,159
(2,679)
(13,688)
265
12,895
(528)
These assets refer to industrial buildings belonging to the Parent Company for which the related sales process has been
completed, and which are expected to fetch a total price of over four million euros. Recognition of this item has not
resulted in charges recognised in the income statement.
300
17 - SHARE CAPITAL
The share capital consists of 1,306.11 million ordinary shares with a par value of 1 euro each. The shares are held as
follows:
• 848,971,500 ordinary shares, representing 65% of the share capital, held by the Ministry of the Economy and Finance;
• 457,138,500 ordinary shares, representing 35% of the share capital, held by Cassa Depositi e Prestiti società per azioni
(CDP SpA).
At 31 December 2009 all the shares in issue are fully subscribed and paid up. No preference shares have been issued and
the Company does not hold treasury shares.
18 - SHAREHOLDER TRANSACTIONS
In accordance with the resolution passed by the General Meeting of shareholders on 27 April 2009, the Parent Company
paid dividends amounting to 150,000 thousand euros (based on a dividend of 0.11 euros per share).
19 - RESERVES
Reserves break down as follows:
19.1 - Reserves
Fair value
reserve
Cash flow
hedge
reserve
75,116
107,681
(178,318)
4,479
37,195
277,975
(88,930)
(47,124)
13,866
155,787
-
23,643
(7,587)
66,052
(21,153)
60,955
-
301,618
(96,517)
18,928
(7,287)
216,742
37,195
112,311
263,468
(117,363)
258,416
36,040
569,547
(181,144)
(31,745)
10,088
366,746
-
3,522
(837)
(6,204)
1,904
(1,615)
-
573,069
(181,981)
(37,949)
11,992
365,131
36,040
148,351
630,214
(118,978)
659,587
Legal
reserve
Amounts reclassified from Equity to profit or loss
Tax effect of amounts reclassified from Equity to profit or loss
Gains/(losses) recognised directly in Equity
Appropriation to retained earnings
Amounts reclassified from Equity to profit or loss
Tax effect of amounts reclassified from Equity to profit or loss
Gains/(losses) recognised directly in Equity
Appropriation to retained earnings
Total
The fair value reserve, which is undistributable pursuant to art. 6, 1-b of Legislative Decree 38 of 28 February 2005, regards
changes in the fair value of financial assets designated as Available-for-sale. During the year changes totalling 569,547
thousand euros included:
• 551,980 thousand euros relating to the net fair value gain on BancoPosta’s investments in securities described in note
14.3;
• 17,567 thousand euros regarding the net fair value gain on other available-for-sale financial assets described in note 8.5.
The cash flow hedge reserve reflects changes in the fair value of the effective portion of cash flow hedges outstanding.
Net fair value gains of 3,522 thousand euros during 2009 have resulted in an increase in the reserve. This amount reflects:
• a net loss of 577 thousand euros in the value of derivative financial instruments described in note 14.4;
• a net gain of 4,099 thousand euros in the value of derivative financial instruments described in note 8.6.
20 - PROVISIONS FOR LIABILITIES AND CHARGES
Changes in provisions are as follows:
Item
Other provisions
Provisions for tax consolidation liabilities
Total
- current portion
(*)
(1)
(2)
Provisions
Finance
costs
Released
to income
statement
91,090
218,166
398,079
19,467
15,500
56,477
798,779
11,658
113,122
504,501
37,645
666,926
1,749
624
2,373
(3,722)
(72,322)
(39,062)
(19,011)
(134,117)
(10,811)
(7,768)
(239,169)
(643)
(4,467)
(686)
(263,544)
88,215
252,947
624,349
19,448
11,033
74,425
1,070,417
2,360
3,986 (2)
-
-
-
6,346
801,139
670,912
2,373
(134,117)
(263,544)
1,076,763
Balance at
31 Dec 2007
290,921
510,218
801,139
Balance at
Uses 31 Dec 2008
257,920
818,843
1,076,763
Net provisions for staff costs amount to 432,361 thousand euros, whilst those for service costs (legal assistance) total 33,078 thousand euros.
These provisions are offset by a reduction in current tax liabilities.
302
Item
Other provisions
Provisions for tax consolidation liabilities
Total
- current portion
(*)
(1)
(2)
Provisions
Finance
costs
Released
to income
statement
88,215
252,947
624,349
19,448
11,033
74,425
25,058
34,067
251,501
115,000
885
55,451
1,176
571
-
(6,090)
(30,134)
(26,692)
(3,157)
(10,631)
(97,282)
(209,011)
(555)
(1,030)
(549)
96,552
160,774
640,147
115,000
19,464
10,888
126,170
1,070,417
481,962
1,747
(66,073)
(319,058)
1,168,995
Balance at
31 Dec 2008
6,346
1,076,763
5,578
Balance at
Uses 31 Dec 2009
(2)
-
-
-
11,924
487,540
1,747
(66,073)
(319,058)
1,180,919
257,920
818,843
286,437
894,482
1,076,763
1,180,919
Net provisions for staff costs amount to 196,886 thousand euros, whilst those for service costs (legal assistance) total 27,923 thousand euros.
These provisions are offset by a reduction in current tax liabilities.
Provisions for non-recurring charges almost entirely regard operating risks attributable to BancoPosta. These include liabilities
deriving from the reconstruction of operating balances at the date of incorporation of the Company, fraud, adjustments and
revised amounts for revenues recognised in previous years, among other liabilities. Provisions for the year amount to 25,058
thousand euros and regard, among other things, potential revisions of fees received for the distribution of financial products
where the amount received is dependent on the behaviour of subscribers, and a number of fines that may result from
investigations of the Company by supervisory authorities. Provisions of 10,631 thousand euros were used to cover liabilities
either arising or settled during the year. The amount released to the income statement, totalling 6,090 thousand euros, is due
to the reversal of liabilities identified in the past. Provisions are based on the present value of identified liabilities.
Provisions for disputes with third parties regard expected liabilities deriving from different types of legal and out-of-court
dispute with suppliers and third parties, the related legal expenses, and penalties and indemnities payable to customers.
Provisions, which reflect the present value of identified liabilities, were increased by the estimated value of new liabilities
(34,067 thousand euros), measured on the basis of the expected outcomes of certain disputes, legal actions and
negotiations. Reductions primarily relate to the reversal of liabilities identified in the past (30,134 thousand euros) and the
value of disputes settled (97,282 thousand euros). The latter includes 75,000 thousand euros regarding settlement, without
any further charges, of the dispute between the Parent Company and Cassa Depositi e Prestiti relating to achievement of
the targets for postal savings deposits in 2008.
Provisions for disputes with staff regard liabilities that may arise following labour litigation and disputes of various types,
but largely attributable to the Company’s use of fixed-term employment contracts. In this regard, having accepted the
terms of the agreement of 10 July 2008 (see note 31), in early 2009 a number of the relevant staff withdrew their claims
and a portion of the provisions, totalling 26,692 thousand euros, was released to the income statement. Provisions of
251,501 thousand euros regard an updated estimate, based on the level of negative outcomes deriving from the related
litigation and union agreements, of the estimated liabilities and related legal expenses. Uses, amounting to 209,011
thousand euros, include amounts used to cover the cost of settling disputes, including 4,901 thousand euros in the form
of asset seizures by the Parent Company’s creditors. Provisions are based on the present value of identified liabilities,
which are believed to be short term.
Provisions for restructuring charges regard the estimated liabilities to be incurred by the Company in the form of redundancy
payments, based on current evidence. At least three thousand staff are expected to leave the Company by 31 December 2010.
Provisions for invalidated postal savings certificates have been made to cover the cost of redeeming invalidated certificates
relating to specific issues. The provisions represent amounts recognised in revenue in the income statements of the
Company in the years in which the certificates became invalid. The provisions were made in response to the Company’s
decision to redeem such certificates even if invalidated. At 31 December 2009 the provisions represent the present value
of total liabilities, based on a face value of 22,873 thousand euros, which are expected to be progressively paid off by 2023.
The Company redeemed certificates with a total face value of 555 thousand euros in 2009, and made provisions for finance
costs totalling 571 thousand euros.
Provisions for taxation/social security contributions have been made to cover potential future tax liabilities. Provisions of
885 thousand euros were made during the year to cover the estimated cost of new liabilities. Uses of 1,030 thousand euros
reflect the settlement of a number of sundry taxes.
The other provisions cover probable liabilities of various types, including: estimated liabilities deriving from the risk that
specific legal actions to be undertaken in order to reverse seizures of the Company’s assets may be insufficient to recover
the related amounts; the risk that a deterioration in certain indicators used as the basis for the long-term business plans on
which impairment testing of investments is based, may result in a reduction in the value of the investments (note 7); claims
for rent arrears on properties used free of charge by the Company; and claims for payment of accrued interest expense
due to certain suppliers. Uses regard the payment of rent arrears. Provisions and releases to the income statement in 2009
reflect updated estimates of the various liabilities.
Provisions for tax consolidation losses regard represent the Company’s potential debt to Group companies included in the
tax consolidation, equal to 50% of the economic benefit deriving from tax losses for the period transferred by such
companies. In accordance with the Group’s rules for consolidation, this amount may be attributed to these companies,
should there be reasonable certainty that they will produce sufficient future taxable income to enable them to recover the
related deferred tax assets. Should such condition not occur, the provisions will be taken to Poste Italiane SpA’s income
statement as a tax consolidation gain. Net provisions of 5,578 thousand euros made during 2009 almost entirely reflect the
tax losses transferred to the Group by the subsidiaries, PosteMobile SpA and SDA Express Courier SpA.
21 - STAFF TERMINATION BENEFITS
Following the reform of supplementary pension provision, from 1 January 2007 companies must pay vested staff termination
benefits into a supplementary pension fund or into a Treasury Fund set up by INPS (should the employee have exercised the
specific option provided for by the new legislation). Staff termination benefits qualify as a defined contribution plan and thus
represent an expense to be recognised at face value in staff costs. Staff termination benefits vesting up to 31 December 2006,
however, continue to represent accumulated liabilities qualifying as a defined benefit plan, for which actuarial calculation is
necessary.
The following changes in staff termination benefits took place in 2009 and 2008:
21.1 - Changes in staff termination benefits
2009
interest component
effect of actuarial gains/(losses)
Provisions for the year:
Uses during the year
Reduction due to fixed-term contracts settlement of 2008
2008
1,486,766
68,497
(49,849)
1,451,781
73,540
94,951
18,648
(80,532)
(5,721)
168,491
(123,775)
(9,731)
1,419,161
1,486,766
304
The interest component is recognised in Finance costs.
The current service cost, which is no longer included in the staff termination benefits managed by the Company, is recognised
in Staff costs.
During 2009, net uses of provisions for staff termination benefits amounted to 80,532 thousand euros, represented by benefits
paid, totalling 83,147 thousand euros, and substitute tax of 3,908 thousand euros. Additions of 6,495 thousand euros regard
the transfer of provisions for disputes with staff formerly on fixed-term contracts who have been re-employed by the Company,
and of 28 thousand euros the transfer of provisions from the subsidiary, Postecom SpA..
Following acceptances in 2009 of the agreement of 10 July 2008, described in note 31, provisions for staff termination benefits
have been reduced by a further 5,721 thousand euros.
The major actuarial assumptions applied in calculating staff termination benefits are as follows:
Discount rate
Staff turnover 19
2009
2008
4.00%
0.49%
4.60%
0.49%
22 - FINANCIAL LIABILITIES
Item
Non-current
liabilities
Current
liabilities
1,552,975
751,304
512,667
250,000
39,004
Borrowings
Bonds
Shareholder loans
Bank borrowings
Other borrowings
Financial liabilities due to subsidiaries
Amounts deriving from
liability for robberies
Total
Total
Non-current
liabilities
Current
liabilities
Total
223,934
19,375
166,850
747
36,962
1,776,909
770,679
679,517
250,747
75,966
1,757,284
751,801
679,517
250,000
75,966
622,052
19,386
160,718
406,921
35,027
2,379,336
771,187
840,235
656,921
110,993
-
2,331
325,418
2,331
325,418
-
3,381
145,760
3,381
145,760
270,535
2,062,284
2,332,819
272,278
1,963,171
2,235,449
156,801
113,734
7,803
2,054,481
164,604
2,168,215
156,826
115,452
10,556
1,952,615
167,382
2,068,067
1,823,510
2,613,967
4,437,477
2,029,562
2,734,364
4,763,926
Borrowings
Borrowings are unsecured and are not subject to financial covenants, requiring the Company to comply with certain
financial ratios, or maintain a certain level of rating. The bonds in issue and bank borrowings are subject to standard
negative pledge clauses20.
19. Frequency of early termination of employment due to resignations and dismissals.
20. A commitment given to creditors by which a borrower undertakes not to give senior security to other lenders ranking pari passu with the pre-existing
creditors, unless the same degree of protection is offered to them also.
Bonds
Bonds regard fixed rate bonds, paying coupon interest of 5.25% and with a par value of 750 million euros. The bonds,
which were issued in two tranches in 2002, are listed on the Luxembourg Stock Exchange and were placed in the form of
a public offering to institutional investors. These 10-year bonds are to be redeemed in a lump sum in July 2012. The current
portion of the loan represents accrued interest expense. The fair value (“mid price”) of the bonds at 31 December 2009 is
780,825 thousand euros (790,950 thousand euros at 31 December 2008).
Shareholder loans
This item refers to fixed rate loans issued by Cassa Depositi e Prestiti. The laws authorising the expenditure financed by
the loans also establish the methods of repayment, as shown in the following table.
22.2 - Shareholder loans
Issuer
Law
Law
Law
Law
Law
Law
15/74
34/74
227/75 (serv. acc.) (1)
39/82 (subsequent changes to PO services) (1)
887/84 (1)
41/86 (1)
Total
(1)
(2)
Loans to be
repaid in full
by Poste
Italiane
Loans with
principal
to be repaid
by parent
Loans with
principal and
interest to be
repaid by parent (2)
Total
12,212
404
-
21,885
382,714
1,958
260,344
-
12,212
404
21,885
382,714
260,344
1,958
12,616
406,557
260,344
679,517
Loans to be repaid by the Ministry of the Economy and Finance (principal: 666,901 thousand euros)
From 2001 interest was no longer paid by the government but by Poste Italiane SpA. From 2006 interest has been paid to the Company.
The fair value of the loans is 711,212 thousand euros (853,789 thousand euros at 31 December 2008).
The outstanding principal assigned by law to the Ministry of the Economy and Finance is offset by a receivable, accounted
for in Financial assets, due from the Parent. Collection of the amount receivable is linked to the repayment schedules for
the loans (note 8.3).
Bank borrowings
22.3 - Bank borrowings
Item
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
Floating rate 7-year loan from EIB
Floating rate loan from DEPFA Bank
Current account overdrafts
Accrued interest expense
-
-
-
-
400,000
400,000
250,000
-
747
250,000
747
250,000
-
2,782
4,139
250,000
2,782
4,139
Total
250,000
747
250,747
250,000
406,921
656,921
306
The value of the above financial liabilities approximates to fair value.
Drawdowns on the Company’s total committed and uncommitted lines of credit, totalling 1,288,700 thousand euros,
amount to zero. The lines of credit are unsecured.
Other borrowings
This item regards fixed rate loans issued by CPG Società di Cartolarizzazione arl. Two loans totalling 309,874 thousand
euros, denominated “Logistics 2002” and “Layout 2002”, were sold without recourse by Cassa Depositi e Prestiti to C.P.G.
Società di Cartolarizzazione arl in 2003. The two ten-year loans were used to finance certain projects. The fair value of these
borrowings is 80,291 thousand euros (116,537 thousand euros at 31 December 2008).
This item, amounting to 2,331 thousand euros, regards contracts described in note 8.6.
FINANCIAL LIABILITIES DUE TO SUBSIDIARIES
These liabilities regard intercompany current accounts paying interest at market rates. The following table shows a breakdown:
22.4 - Financial liabilities due to subsidiaries not consolidated on a line-by-line basis
Name
Direct subsidiaries
CLP ScpA
EGI SpA
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Postecom SpA
PosteMobile SpA
PosteShop SpA
Poste Assicura SpA
Total
18,010
61
160,856
4,120
2,244
2
1,351
17,769
100,058
15,219
5,077
651
25,114
120
99,295
5,774
1,986
2
804
9,586
1,842
758
320
139
-
20
325,418
145,760
OTHER FINANCIAL LIABILITIES
Amounts deriving from liability for robberies
The Company is liable to the Italian Treasury for losses resulting from robberies and fraud. The loss of cash resulting from
these criminal acts has to be made up for, in order to ensure that post offices can carry out their daily operations. This is
done via withdrawals from the Treasury. Changes in this liability are as follows;
22.5 - Changes in amounts deriving from liability for robberies
Note
Liabilities deriving from robberies during the year
Repayments made
[33.1]
2009
2008
167,382
173,204
9,964
(12,742)
164,604
10,997
(16,819)
167,382
During 2009 the Company made repayments of 12,717 thousand euros to the Treasury for robberies that took place in the
second half of 2008 and the first four months of 2009, in addition to payment of the sum of 25 thousand euros following
a sentence issued by the Italian Court of Auditors regarding robberies up to 31 December 1993.
Sundry financial liabilities are generated by BancoPosta activities not subject to the investment restrictions described in
note 14. For this reason, they are not included in Liabilities attributable to BancoPosta (note 14.7). These liabilities break
down as follows:
22.6 - Sundry financial liabilities
Non-current
liabilities
Current
liabilities
Italian Treasury for operational risks
113,630
Amounts due on bills paid
Amounts due on prepaid cards
Endorsed checks
National and international money transfers
Tax collection
Other
104
Total
113,734
890,768
523,565
393,740
148,052
91,295
7,061
2,054,481
Item
Total
Non-current
liabilities
Current
liabilities
Total
113,630
890,768
523,565
393,740
148,052
91,295
7,165
2,168,215
108,971
6,481
115,452
910,144
432,724
361,703
168,391
73,845
5,808
1,952,615
108,971
910,144
432,724
361,703
168,391
73,845
12,289
2,068,067
Amounts due to the Italian Treasury for operational risks refer to advances obtained as a result of BancoPosta’s operations
and which subsequently gave rise to liabilities that are either certain or likely to be incurred. Changes in these liabilities are
as follows:
22.7 - Changes in amounts due to the Italian Treasury for operational risks
Note
2009
10,762
(9,596)
[33.1]
89,111
108,971
New liabilities for operational
Operational risks that did not occur
Repayments made
Uses of provisions for disputes with staff
2008
5,430
(2,546)
1,166
(27)
3,520
2,884
(5,366)
22,342
113,630
108,971
308
Amounts due on bills paid regard sums collected on payment of bills and yet to be allocated to the accounts of beneficiaries.
Amounts due on prepaid cards represent amounts due to Postepay and Pensione card customers who have topped up their
prepaid cards. Amounts due on national and international money transfers represent the exposure to customers for money
orders and transfers, to Moneygram for customer transactions in process and amounts due to overseas postal operators for
international money orders. Endorsed checks represent the exposure to customers for endorsed checks in circulation. Tax
collection payables represent the amount due to tax collection agents and the tax authorities for payments of tax effected
by customers.
Analysis of net debt/(funds)
The Company’s net debt or net funds at 31 December 2009 and 31 December 2008 is as follows:
22.8 - Net debt/(funds)
Item
Note
Bonds
Shareholder loans
Bank borrowings
Other borrowings
Other
[22.1]
Financial assets
related
Balance at
party
related
Balance at
party
4,437,477
770,679
679,517
250,747
75,966
2,660,568
679,517
325,418
4,763,926
771,187
840,235
656,921
110,993
2,384,590
840,235
145,760
[14.7]
37,810,096
172,232
37,206,089
671,679
[8.1]
(1,608,555)
(1,347,053)
(261,502)
-
(1,278,680)
(101,143)
-
(2,079,336)
(1,527,158)
(551,062)
(1,116)
(1,407,355)
(102,230)
-
[14.1]
(39,512,159)
(6,804,803)
(38,909,191)
(5,546,358)
[15.1]
1,126,859
(1,598,564)
-
981,488
(972,912)
-
Net debt/(funds)
(471,705)
8,576
23 - TRADE PAYABLES
23.1 - Trade payables
Item
Amounts due to suppliers
Amounts due to subsidiaries
Interest payable to current account holders
1,113,077
234,886
208,269
95,865
1,172,399
253,553
206,157
119,033
Total
1,652,097
1,751,142
AMOUNTS DUE TO SUPPLIERS
23.2 - Amounts due to suppliers
Item
Italian suppliers
Overseas suppliers
Overseas correspondents (1)
Total
(1)
956,190
9,440
147,447
1,017,894
11,561
142,944
1,113,077
1,172,399
The amount due to overseas correspondents regard fees payable to overseas postal operators and companies in return for postal and telegraphic
services provided.
AMOUNTS DUE TO SUBSIDIARIES
23.3 - Amounts due to subsidiaries
Name
Direct subsidiaries
CLP ScpA
Consorzio per i Servizi di Telefonia Mobile ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Postecom SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
70,902
1,983
1,450
106
23,350
10,197
1,164
25,813
83
28,878
1,030
123
270
11,440
55,388
2,496
895
106
9,248
8,612
76
1,470
33,518
54,471
3,768
5,409
328
23,327
Poste Assicura SpA
PostelPrint SpA
503
57,397
197
1,648
52,580
213
234,886
253,553
Total
(1)
Joint venture.
310
PREPAYMENTS FROM CUSTOMERS
These items refer to amounts received from customers as prepayment for the following services to be rendered:
23.4 - Prepayments from customers
Item
Prepayments from overseas correspondents
Mechanized franking
Unfranked mail
Other services
103,178
67,141
18,035
10,842
9,073
89,600
69,103
25,561
10,510
11,383
Total
208,269
206,157
INTEREST PAYABLE TO CURRENT ACCOUNT HOLDERS
This refers to interest accrued on postal current accounts during the year, less the related withholding tax.
Accrued interest payable to subsidiaries at 31 December 2009 amounts 4,132 thousand euros (7,088 thousand euros at
31 December 2008).
24 - CURRENT TAX LIABILITIES
Under IAS 12 – Income taxes, IRES and IRAP credits are accounted for less the corresponding Current tax liabilities,
given that they are taxes applied by the same tax authority to the same taxable entity, which has a legally enforceable
right to offset and intends to exercise this right. This item breaks down as follows:
24.1 - Current tax liabilities
Item
IRES
IRAP
Substitute tax
33,714
6,548
25,433
328
58,071
Total
65,695
58,399
IRES and IRAP payable refer to the balances due to the tax authorities, represented by provisions for the year less advances
paid and withholding tax paid for IRES.
Substitute tax refers to the remaining payment to be made in 2010, following the franking, in 2008, of off-book deductions
applied between 2004 and 2007.
25 - OTHER LIABILITIES
25.1 - Other liabilities
Item
Non-current
liabilities
Amounts due to staff
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
-
813,547
813,547
-
690,461
690,461
59,462
468,555
528,017
81,284
448,382
529,666
Other tax liabilities
-
146,606
146,606
-
170,023
170,023
Amounts due to the parent
-
12,140
12,140
-
12,140
12,140
Other amounts due to subsidiaries
-
11,380
11,380
-
38,883
38,883
7,156
138,541
145,697
7,190
111,714
118,904
Amounts due to social security agencies
Sundry payables
Accrued expenses and deferred income
from trading transactions (*)
Other liabilities
6,301
24,807
31,108
6,616
24,736
31,352
72,919
1,615,576
1,688,495
95,090
1,496,339
1,591,429
-
-
-
-
485,572
485,572
72,919
1,615,576
1,688,495
95,090
1,981,911
2,077,001
Total
(*)
AMOUNTS DUE TO STAFF
These amounts primarily represent accrued compensation yet to be paid at 31 December 2009. A breakdown is as follows:
25.2 - Amounts due to staff
Item
Accrued vacation pay
Fourteenth month salaries
Incentives and productivity bonuses
Other amounts due to staff
Total
85,385
241,764
356,386
130,012
103,983
237,807
233,712
114,959
813,547
690,461
312
AMOUNTS DUE TO SOCIAL SECURITY AGENCIES
25.3 - Amounts due to social security agencies
Non-current
liabilities
Current
liabilities
IPOST
INPS
INAIL
Pension fund
Amounts due to the Solidarity Fund
Other agencies
56,667
2,795
-
Total
59,462
Item
Total
Non-current
liabilities
Current
liabilities
Total
324,192
40,061
2,470
69,579
18,087
14,166
324,192
40,061
59,137
69,579
20,882
14,166
59,136
22,148
-
288,535
28,738
4,354
59,903
51,349
15,503
288,535
28,738
63,490
59,903
73,497
15,503
468,555
528,017
81,284
448,382
529,666
Amounts due to IPOST regard pension and social security contributions due to the institute on behalf of the Company’s
employees, calculated on both the salaries paid as of 31 December 2009 and accrued amounts due, as reported under the
item Amounts payable to staff.
Amounts due to INPS regard provisions for vested staff termination benefits to be paid into the agency’s Treasury fund at
31 December 2009 (note 21).
Amounts due to INAIL primarily derive from charges for injury compensation paid to employees for injuries occurring up to
31 December 1998. This amount, originally amounting to 82,633 thousand euros, is repayable in thirty years from 31
December 1999, based on a straight-line amortisation schedule and an annual interest rate of 2.5%.
Amounts payable to the pension fund refer to sums due to FondoPoste and other pension funds following the decision by
certain employees to join a supplementary fund.
Amounts due to the Solidarity Fund (set up by Ministerial Decree 178 of 1 July 2005) regard amounts designed to cover
redundancy payments and income support for employees who, having qualified for participation, decide to take voluntary
early retirement. The residual amount payable at 31 December 2009 represents the present value of total liabilities with a
face value of 71,990 thousand euros, which are expected to be progressively paid off by 2011. During the year this payable
increased due to accrued finance income of 1,763 thousand euros, whilst the reduction reflected contributions paid and
redundancy payments effected, totalling 54,378 thousand euros.
OTHER TAX LIABILITIES
25.4 - Other tax liabilities
Item
Withholding tax on employees’ and consultants’ salaries
Withholding tax on postal current accounts
Substitute tax
Stamp duty
Other taxes due
Total
95,853
34,391
654
9,247
6,461
102,320
42,384
469
12,326
12,524
146,606
170,023
Amounts due on salaries paid to employees and consultants regards withholding tax paid to the tax authorities by the
Company in January and February 2010.
Withholding tax due on postal current accounts refers to amounts withheld on interest accrued on customers’ current
accounts.
Substitute tax represents the balance payable by the Company on the revaluation of staff termination benefits in 2009.
Stamp duty is payable to the tax authorities as duty to be paid in virtual form. The balance includes the adjustment paid in
2010 pursuant to note 3bis of art. 13 of the Tariffs provided for by Presidential Decree 642/1972.
Other taxes due include urban waste tax of 5,691 thousand euros and VAT payable of 770 thousand euros.
AMOUNTS DUE TO THE PARENT
This item refers to 12,140 thousand euros due to the Ministry of the Economy and Finance for pensions paid by the
Ministry to former employees of Poste Italiane SpA for the period 1 January to 31 July 1994.
OTHER AMOUNTS DUE TO SUBSIDIARIES
25.5 - Other amounts due to subsidiaries
Item
Direct subsidiaries
EGI SpA
Poste Vita SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
PostelPrint SpA
Total
36
1,262
175
2,245
7,509
30,481
175
3,164
4
4,985
153
74
11,380
38,883
This item primarily regards the amount payable by Poste Italiane SpA, as the consolidating entity, to subsidiaries in return
for the transfer of tax credits for advance payments, withholding taxes paid and tax paid overseas, less IRES payable by
subsidiaries to the Parent Company, and the benefit linked to the tax losses transferred from PosteMobile SpA and SDA
Express Courier SpA during 2009.
314
SUNDRY PAYABLES
25.6 - Sundry payables
Item
Sundry payables attributable
to BancoPosta
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
-
107,308
107,308
-
86,104
86,104
7,156
-
7,156
7,190
-
7,190
Other
-
31,233
31,233
-
25,610
25,610
Total
7,156
138,541
145,697
7,190
111,714
118,904
Guarantee deposits
Sundry payables attributable to BancoPosta refer to 92,379 thousand euros due to INPS for pensions paid by Poste Italiane
SpA to pensioners after their death and which are in the process of being recovered. A further 14,929 thousand euros is
due to Cassa Depositi e Prestiti as a result of amounts registered in customers’ Postal savings books and in the process
of verification.
Guarantee deposits primarily regard amounts collected from customers as a guarantee of payment for certain services
(postage-paid mailing services, the use of post office boxes, lease contracts, telegraphic service contracts, etc.).
ACCRUED EXPENSES AND DEFERRED INCOME FROM TRADING TRANSACTIONS
The nature and composition of accrued expenses and deferred income is as follows:
25.7 - Accrued expenses and deferred income
Item
Non-current
liabilities
Current
liabilities
Total
Non-current
liabilities
Current
liabilities
Total
Accrued expenses
-
2,799
2,799
-
341
341
Deferred income (*)
6,301
22,008
28,309
6,616
24,395
31,011
Total
6,301
24,807
31,108
6,616
24,736
31,352
(*)
Deferred income primarily regards:
• 14,706 thousand euros in fees on Postemat cards collected in advance;
• 6,616 thousand euros (including 6,301 relating to income accruing after 2010) regarding the advance collection of the
rental on a thirty-year lease of a pneumatic postal machine in Rome;
• 5,996 thousand euros relating to income accruing to the Company in future years as a result of the Grand Premio
BancoPosta loyalty programme, which grants award credits to customers in return for certain behaviours. As required by
IFRIC 13, recognition of the related revenue is deferred until the Company has fulfilled its obligations to deliver awards
to customers or, if the award credits must be used within a limited period of time, until the credits are no longer valid.
26 - REVENUES FROM SALES AND SERVICES
Revenues from sales and services of 9,841,166 thousand euros break down as follows:
26.1 - Revenues from sales and services
Item
2009
2008
Postal Services
BancoPosta Services (*)
Other sales of goods and services
4,708,951
5,039,417
92,798
4,952,582
4,781,471
91,711
Total
9,841,166
9,825,764
2009
2008
Unfranked mail
Mechanized franking by third parties and at post offices
Stamps
Integrated services
Overseas mail and parcels
Telegrams and online services
Other postal services
1,537,481
1,300,943
502,247
256,227
168,087
121,734
69,905
70,483
1,671,136
1,337,405
563,421
201,469
193,068
138,637
75,858
65,547
Total market revenues
4,027,107
4,246,541
371,830
310,014
363,646
342,395
4,708,951
4,952,582
(*)
POSTAL SERVICES
Revenues from Postal Services break down as follows:
26.2 - Postal Services
Item
Universal Service Obligation subsidies
Publisher and electoral tariff subsidies (1)
Total
(1)
Subsidies to compensate for tariffs discounted in accordance with the law.
Unfranked mail includes revenues from the mailing of correspondence by large customers from certain network centres
and enabled post offices, including mailings carried out under the Bulk Mail formula.
Mechanized franking by third parties or at post offices regards revenues from the mailing of correspondence franked
directly by customers or at post offices using a franking machine.
Stamp sales refer to the sale of postage stamps through post offices and authorised outlets and sales of stamps used for
franking on credit.
Integrated services, which refer entirely to the Poste Italiane SpA, regard the delivery of administrative process and fines,
amounting to 225,324 thousand euros, the integrated notification service for legal process carried out on behalf of UNEP
(Notifications, Enforcements and Complaints Offices), totalling 28,056 thousand euros, and revenues deriving from the
agreement with the tax authorities regarding bulk and registered services, amounting to 2,847 thousand euros.
316
Postage-paid mailing services regard revenues from the delivery of periodicals and mail-order goods on behalf of publishers
who benefit from preferential rates, as provided for by Law 46 of 27 February 2004, which converted Legislative Decree
353 of 24 December 2003.
Overseas mail and parcels relate to revenues from the international exchange of such items.
Telegrams and online services primarily regard the telegram service provided by phone or at post offices, and amounting
to 42,417 thousand euros and 13,711 thousand euros, respectively.
Universal Service Obligation subsidies regard the subsidies paid by the Ministry of the Economy and Finance to cover the
costs of fulfilling the Universal Service Obligation (USO). Subsidies of 371,830 thousand euros are, whilst awaiting renewal
of the Contratto di Programma (Planning Agreement) for the three-year period 2009-2011, estimated on the basis of the
best available information from previous Contratti di Programma (Planning Agreements) and Interministerial Committee for
Economic Planning (CIPE) “Guidelines for Regulation of the Postal Sector”.
Publisher and electoral tariff subsidies include:
• 242,573 thousand euros representing the amounts due from the Publishing department of the Cabinet Office to cover
the cost of the preferential rates offered to publishers and non-profit organisations. The amount due was calculated on
the basis of the tariffs established in the Ministry of Communications (now the Ministry for Economic Development)
Decree of 23 November 2002 and governed by Law 46 of 27 February 2004. With regard to the financial year ended 31
December 2009, the subsidies to cover the discounts granted by the Parent Company have not been allocated in the
Cabinet Office’s budget;
• 67,441 thousand euros in amounts paid by the State to cover reductions and preferential prices granted to election
candidates under Law 515/93. This amount is also not covered by the MEF’s budget.
BANCOPOSTA SERVICES
These revenues break down as follows:
26.3 - BancoPosta services
Item
2009
2008
Fees for collection of postal savings deposits
Income from investment of postal current account deposits
Commissions on bills processed
Other revenues from current account services (*)
Commissions on the sale of life assurance products
Income from delegated services
Distribution of loan products
Commissions on credit certificates
Money transfers
Fees for issue and use of prepaid cards
Securities custody
Distribution of investment funds
Other financial products and services
1,600,000
1,319,900
622,876
535,314
218,382
202,442
181,095
158,431
78,444
58,768
24,496
2,469
36,800
1,364,548
1,383,380
611,135
502,108
210,696
189,516
70,345
241,219
81,919
49,132
26,680
19,944
30,849
Total
5,039,417
4,781,471
(*)
Fees for the collection of savings deposits regard payment for managing, issuing and redeeming Postal Savings
Certificates and payments into and withdrawals from Posta Savings books. These services are provided by Poste Italiane
SpA on behalf of Cassa Depositi e Prestiti. 1,600,000 thousand euros of the accrued amount for 2009 was determined in
relation to the achievement of targets for savings deposits set out in the agreement entered into on 30 July 2009. This
agreement expired on 31 December 2009 and a new agreement, governing the provision of this service in 2010, was
signed on 10 March 2010.
Income from the investment of postal current account deposits breaks down as follows:
26.4 - Income from the investment of postal current account deposits
Item
Interest income on HTM securities
Interest income on AFS financial assets
Interest income on securities held for trading
Interest income on asset swaps of AFS financial assets
Remuneration of current account deposits (deposited with the MEF)
Net remuneration of Company’s own liquidity recognised in finance income and costs
Total
2009
2008
1,112,073
516,695
543,453
1,825
50,100
1,052,569
510,292
528,412
936
12,929
214,296
214,296
355,564
355,564
(6,469)
(24,753)
1,319,900
1,383,380
Interest income on securities derives from the investment of deposits paid into postal current accounts by private
customers. The total includes the impact of the cash flow hedges described in note 14.4.
Remuneration of postal current account deposits represents accrued interest for the year on deposits held with the MEF.
The floating rate used to determine the remuneration has been calculated in accordance with the Agreement with the MEF
approved by specific Ministerial Decree on 7 April 2009 (note 14).
Net remuneration of the Company’s own liquidity deposited in postal current accounts
This item is shown separately in Finance income and costs (note 34).
Other revenues from current account services primarily regard current account charges (189,143 thousand euros), fees on
amounts collected and on statements of account sent to large customers (138,256 thousand euros), annual fees on debit
cards (62,623 thousand euros) and on debit card transactions (69,120 thousand euros).
Income from delegated services primarily regards amounts received for the payment of pensions disbursed by INPS
(106,614 thousand euros) and INPDAP (15,789 thousand euros), and for treasury services carried out by the Company in
2009 on the basis of the Agreement with the MEF (63,912 thousand euros).
Revenues from the distribution of loan products by regard commissions on the sale of personal loans and mortgages
provided by third parties (181,095 thousand euros).
Commissions on credit certificates primarily regard income from the placement of bonds issued by leading credit
institutions (150,557 thousand euros) and from government securities (7,874 thousand euros).
Revenues from money transfers primarily regard commissions collected on national money orders (56,010 thousand
euros), Moneygram transfers (15,844 thousand euros) and Eurogiros (6,142 thousand euros).
Revenues generated by the distribution of investment funds from the second half of 2008 do not include management
fees which, in accordance with the Markets in Financial Instruments Directive by the EU (Directive 2004/39/EC, “MiFID”),
are attributable entirely to the manager, BancoPosta Fondi SpA SGR.Revenues from other financial products and services
primarily include revenues from the tax collection service (5,300 thousand euros).
318
OTHER SALES OF GOODS AND SERVICES
This income from ordinary activities is not attributable to the specific Postal and BancoPosta segments. The main
components include: fees received for collecting applications for residence permits and other permits, totalling 25,876
thousand euros (27,580 thousand euros in 2008), income from the provision of ancillary franking and packaging services,
totalling 10,491 thousand euros (11,081 thousand euros in 2008) and income from call centre services, amounting to 7,837
thousand euros (5,550 thousand euros in 2008).
27 - OTHER INCOME FROM FINANCIAL ACTIVITIES
Other income from financial activities consists of the following:
27.1 - Other income from financial and insurance activities
Item
2009
2008
Fair value gains
Realised gains
46,327
46,327
4,422
3,612
810
Income from held-to-maturity investments
Realised gains
72,638
72,638
-
Realised gains
41,487
41,487
51,095
51,095
7,521
7,521
1,320
463
857
-
(755)
167,973
56,082
2009
2008
56,577
13,397
36,752
11,123
16,706
3,177
104
56,359
35,187
14,044
36,492
16,070
13,276
3,029
259
20,938
194,195
139,295
Finance income from forward purchases
Fair value gains
Realised gains
Remuneration of Company’s own liquidity recognised in finance income
Total
28 - OTHER OPERATING INCOME
This item primarily regards the following:
28.1 - Other operating income
Item
Gains on disposals
Lease rentals
Increases to estimates for previous years
Recovery of cost of seconded staff
Recovery of contract expenses and other recoveries
Invalidated money orders
Grants related to income
Other income and sundry revenues
Total
GAINS ON DISPOSALS
28.2 - Gains on disposals
Item
2009
2008
Gains on disposal of operating property and land
Gains on disposal of investment property
Gains on disposal of other operating assets
34,894
7,851
13,832
22,940
9,134
3,113
Total
56,577
35,187
For the purposes of reconciliation with the statement of cash flows, in 2009 the net gains in question amount to 54,893 thousand euros, after losses of 1,684
thousand euros (note 33). In 2008, this item amounted to 29,293 thousand euros, after losses of 5,894 thousand euros.
LEASE RENTALS
28.3 - Lease rentals
Item
2009
2008
Rental income from investment property
Residential properties
Service accommodation
4,615
4,610
5
4,971
4,965
6
Rental income on commercial property
Intercompany rentals
Antenna sites
Other rental income
5,750
2,238
985
2,527
5,697
2,412
849
2,436
Recovery of expenses, transaction costs and other income (1)
3,032
3,376
13,397
14,044
Total
(1)
This item primarily regards the recovery of costs incurred directly by Poste Italiane SpA and recharged to tenants. This category does not include
extraordinary maintenance costs.
Under the relevant lease agreements, tenants usually have the right to break off the lease with six months notice. Given
the resulting lack of certainty, the expected revenue flows from these leases are not referred to in these notes. No
significant extraordinary maintenance costs were transferred to tenants via increases in rents.
OTHER INCOME AND SUNDRY REVENUES
This item includes, among Other items, income from the settlement of disputes between the Company and third parties.
A large proportion of this item for 2009 regards this type of income.
320
29 - COST OF GOODS AND SERVICES
29.1 - Cost of goods and services
Item
2009
2008
Services
Lease expense
Interest expense paid to current account holders
Raw, ancillary and consumable materials and goods for resale
1,511,212
285,495
131,359
117,026
1,536,223
277,677
162,405
133,421
Total
2,045,092
2,109,726
2009
2008
386,206
169,918
154,395
119,253
107,273
91,953
85,399
83,930
79,192
58,850
45,776
39,429
31,411
21,515
14,136
13,966
8,422
188
439,412
165,343
113,223
119,710
112,443
82,875
87,500
88,689
80,487
59,317
37,812
45,041
39,577
25,941
15,203
12,536
10,923
191
1,511,212
1,536,223
(*)
(*)
SERVICES
29.2 - Services
Item
Transport of mail, parcels and forms
Routine maintenance and technical assistance
Personnel services
Energy and water
Outsourcing fees and other external service charges (*)
Telecommunications and data transmission
Transport of cash
Mail, telegraph and telex
Cleaning, waste disposal and security
Printing and enveloping services
Credit and debit card fees and charges
Consultants’ fees and legal expenses
Advertising and promotions
Automated services for the Department of Land Transportation
Agents’ commissions and other
Insurance premiums
Securities custody fees
Remuneration of Statutory Auditors
Total
(*)
Details of the remuneration paid to Statutory Auditors are provided below:
29.3 - Remuneration of Statutory Auditors
Item
2009
2008
Remuneration
Expenses
151
37
151
40
Total
188
191
2009
2008
Property rentals
Lease rentals
Ancillary costs
Vehicle leases
Equipment hire and software licenses
Other lease expense
159,931
150,841
9,090
73,534
44,300
7,730
153,775
145,315
8,460
71,655
43,340
8,907
Total
285,495
277,677
LEASE EXPENSE
Lease expense breaks down as follows:
29.4 - Lease expense
Item
The cost of leasing operating properties regards the buildings from which the Company operates (post offices, Delivery
Offices, Sorting Centres). Under the relevant lease agreements, rents are increased annually on the basis of the price
index published by the National Office of Statistics (ISTAT). Lease terms are generally six years, renewable for a further
six. Renewal is assured via the clause stating that the lessor "waives the option of refusing renewal on expiry of the first
term", by which the lessor, once the agreement has been signed, cannot refuse to renew the lease, except in cases of
force majeure. Moreover, Poste Italiane SpA, in accordance with the standard contract form, have the right to withdraw
from the contract at any time, giving six months notice.
INTEREST EXPENSE PAID TO CURRENT ACCOUNT HOLDERS
The rate paid to retail customers was 0.50% until 31 May 2009 and 0.25% from 1 June 2009 (0.50% throughout 2008).
322
RAW, ANCILLARY AND CONSUMABLE MATERIALS AND GOODS FOR RESALE
29.5 - Raw, ancillary and consumable materials and goods for resale
Item
2009
2008
42,779
32,046
20,521
21,680
52,341
33,324
23,632
24,124
117,026
133,421
Item
2009
2008
Expenses deriving from financial instruments at fair value through profit or loss
Fair value losses
Realised losses
1,311
125
1,186
5,609
2,499
3,110
Realised losses on available-for-sale financial assets
Realised losses on held-to-maturity securities
-
1,486
42
Finance costs on forward purchases
Fair value losses
Realised losses
Remuneration of Company’s own liquidity recognised in finance income
-
4,215
3,800
415
(68)
1,311
11,284
Fuels and lubricants
Printed matter and stationery
Printing of postage and revenue stamps
Consumables and goods for resale
Total
30 - OTHER EXPENSES FROM FINANCIAL ACTIVITIES
Other expenses from financial activities consist of the following:
30.1 - Other expenses from financial activities
Total
31 - STAFF COSTS
Staff costs include the cost of staff seconded to other organisations. The recovery of such expenses is posted to Other
operating income. Staff costs break down as follows:
31.1 - Staff costs
Item
Note
2009
2008
Wages and salaries
Social security contributions
Provisions for staff termination benefits: supplementary pension funds and INPS
Agency staff
Remuneration and expenses paid to Directors
Redundancy payments
Net provisions for disputes with staff
[20.2]
[20.2]
Other staff costs/(cost recoveries)
4,258,386
1,177,813
266,004
1,938
2,032
169,914
196,886
115,000
(15,032)
4,262,713
1,074,701
252,082
9,664
1,176
54,747
432,361
(4,347)
Total costs
Income from fixed-term contracts settlement of 10 July 2008
6,172,941
(121,007)
6,083,097
(203,104)
Total
6,051,934
5,879,993
Item
2009
2008
Remuneration
Expenses
1,931
101
1,086
90
Total
2,032
1,176
Details of the remuneration paid to Directors are provided below:
31.2 - Remuneration and expenses paid to Directors
From 1 January 2009, following the entry into force of art. 20 of Law 133/2008, Poste Italiane SpA is required to pay
contributions to INPS to cover maternity and involuntary unemployment benefits, which are not provided by IPOST. This is
the reason for the increase in the amount payable to INPS at 31 December 2009.
Cost items relating to staff termination benefits are described in note 21.
Net provisions for disputes with staff and those for restructuring charges are described in note 20.2.
Cost recoveries primarily regard revised estimates for previous years.
Income from the fixed-term contracts settlement of 10 July 2008 refers to further acceptances during early 2009, following
the agreement reached between Poste Italiane SpA and the labour unions regarding the re-employment by court order of
staff previously employed on fixed-term contracts. The agreement has resulted in conversion of the previous temporary
contracts to permanent arrangements for approximately 3,500 staff who, at 10 July 2008, were employed by the Company
by virtue of a judicial ruling that had not yet become final. This was effected by means of individual agreements, under
which each member of staff waived any legal or financial claim deriving from the sentence requiring their re-employment,
and approximately 2,900 staff agreed to return any amounts paid by the Company for periods during which they did not
work, and which the Company had charged to the income statement in previous years. These amounts, which are to be
repaid in variable interest-free instalments by 2029, total approximately 142 million euros, representing gross salaries,
contributions attributable to the Company and accrued termination benefits. Compared with the above face value of the
324
amounts to be returned, the amount of 121,007 thousand euros recognised in the income statement for the year
represents the present value of income deriving from the settlement. This present value was calculated on the basis of
the expected cash flows deriving from collection of the amounts due under the individual agreements (based on the
forward yield curve for government securities at 30 June 2009), and those deriving from amounts due from IPOST, set out
in a specific agreement with the social security institute dated 23 December 2009 (based on the forward yield curve for
government securities at 31 December 2009).
The following table shows the average and year-end headcounts by category:
31.3 - Headcount
Average number
Category
Senior managers
A1
A2
B, C, D
E, F
Total permanent staff
(*)
(*)
Year-end number
2009
2008
31 Dec 2009
31 Dec 2008
627
5,750
8,119
127,487
6,143
643
5,674
7,701
128,146
5,242
602
5,663
8,010
124,520
6,107
629
5,686
7,973
127,469
6,165
148,126
147,406
144,902
147,922
Figures expressed in full-time equivalent terms.
Taking account of staff on flexible contracts, the average number of full-time equivalent staff in 2009 was 150,793 (153,149
in 2008).
32 - DEPRECIATION, AMORTISATION AND IMPAIRMENTS
32.1 - Depreciation, amortisation and impairments
Item
2009
2008
347,834
92,126
136,026
17,497
20,059
82,126
13,448
349,385
89,771
135,739
20,797
25,278
77,800
(51)
4,311
(1,817)
5,089
(6,092)
Amortisation of intangible assets
Industrial patents and intellectual property rights
Concessions, licences, trademarks and similar rights
Other
140,646
140,553
93
-
143,704
143,247
91
366
Total
504,422
492,035
Depreciation of property, plant and machinery
Operating properties
Plant and machinery
Industrial and commercial equipment
Other assets
Impairments/recoveries/adjustments of property, plant and equipment
Depreciation of investment property
Impairments/recoveries/adjustments of investment property
33 - OTHER OPERATING COSTS
Other operating costs break down as follows:
33.1 - Other operating costs
Item
Note
2009
2008
Provisions and losses on doubtful debts (uses of provisions)
Provisions for receivables due from customers
Provisions for receivables due from parent
Provisions for sundry receivables
Losses on receivables (*)
[11.3]
[11.6]
[13.2]
27,796
(20,031)
23,211
20,181
4,435
102,321
44,779
46,145
11,395
2
Occurrence of operational risks
Robberies
Reversal of BancoPosta assets, net of recoveries
Other operating losses of BancoPosta
[22.5]
[22.7]
29,875
9,964
1,166
18,745
32,134
10,997
2,884
18,253
75,195
3,933
18,968
52,294
67,370
40,800
7,936
18,634
1,684
5,894
36,144
16,374
9,010
9,875
39,485
16,590
8,216
14,679
[20.2]
885
-
[7.2]
20,658
20,504
20,145
12,337
21,896
211,856
301,582
Net provisions for liabilities and charges made/(used)
(1)
for disputes with third parties
for non-recurring BancoPosta liabilities (**)
other
[20.2]
[20.2]
[20.2]
Losses
Other taxes and duties
Municipal property tax
Urban waste tax
Other
Net provisions (uses) of provisions for taxation
and social security contributions (1)
Revised estimates and assessments for previous years
Impairments of investments
Other current costs
Total
(*)
(**)
(1)
Including 4,431 thousand euros described in note 11.2.
For the purposes of reconciliation with the statement of cash flows, in 2009 this item amount to 76,080 thousand euros (67,370 thousand euros in 2008).
326
34 - FINANCE INCOME AND COSTS
FINANCE INCOME
34.1 - Finance income
Item
2009
2008
Income from subsidiaries (1)
Interest on receivables
Interest on intercompany current accounts
17,679
15,922
1,757
24,407
19,040
5,367
Interest on fiduciary deposits (1)
Interest on fixed income instruments (1)
Realised gains
Dividends from other investments
9,979
2,004
7,821
154
48,350
5,632
14,425
27,092
1,201
112,357
43,801
6,469
2,467
56,217
2,945
(2,861)
3,319
186,092
69,795
25,440
26,045
57,817
2,941
(2,939)
6,993
4,501
6,195
8
3,449
144,524
268,493
Other finance income (1)
Interest from parent (2)
Remuneration of Poste Italiane SpA’s liquidity
Interest on term bank accounts
Finance income on discounted receivables (3)
Overdue interest
Impairment of amounts due as overdue interest
Other
Foreign exchange gains
Revaluations
Total
(1)
(2)
(3)
For the purposes of reconciliation with the statement of cash flows, for 2009 these items amount to 139,861 thousand euros (230,556 thousand euros
in 2008).
Interest income from the parent includes:
• 43,423 thousand euros as interest payable under Law 887/84, to cover the accrued portion of the interest due on the loans issued by Cassa Depositi e
Prestiti (described in note 8.3), including 11,665 thousand euros accrued in 2009 and 31,758 thousand euros accrued in previous years;
• 378 thousand euros in interest on the account held at the Italian Treasury.
Finance income on discounted receivables regards: 31,772 thousand euros in accrued interest on the amount due from the MEF (note 8.3), 14,967
thousand euros in interest on amounts due for the publisher tariff subsidies described in note 11.2, and 9,478 thousand euros in interest on amounts due
from staff under the fixed-term contracts settlements of 2006 and 2008 (note 10.1).
FINANCE COSTS
34.2 - Finance costs
Item
Note
Finance costs
on bonds
on shareholder loans
on bank borrowings
on other borrowings
paid to the parent
on derivative financial instruments
on amounts payable to subsidiaries
(1)
Finance costs on provisions for staff termination benefits (1)
Finance costs on provisions for liabilities (1)
Finance costs on discounted amounts payable to Solidarity Fund (1)
Interest on amounts payable under EC Decision of 16 July 2008 (1)
Other finance costs (1)
Foreign exchange losses
Total
(1)
[21.1]
[20.2]
[25.3]
2009
2008
95,201
38,867
32,712
12,417
5,578
228
4,370
1,029
122,997
38,958
38,746
32,410
7,412
315
146
5,010
68,497
1,747
1,763
73,540
2,373
4,442
3,842
2,929
19,673
3,942
5,126
173,979
232,093
For the purposes of reconciliation with the statement of cash flows, for 2009 these items amount to 171,050 thousand euros (226,967 thousand euros
in 2008).
328
35 - INCOME TAX EXPENSE
35.1 - Income tax expense
2009
Item
Current tax expense
Substitute tax
Deferred tax assets
Total
2008
IRES
IRAP
Total
IRES
IRAP
Total
385,700
49,350
15,321
(82,910)
276,139
(4,595)
(6,491)
661,839
49,350
10,726
(89,401)
438,688
81,932
(85,566)
(127,237)
269,864
(5,384)
(17,870)
708,552
81,932
(90,950)
(145,107)
367,461
265,053
632,514
307,817
246,610
554,427
IRES
IRAP
Total
The effective tax rate for 2009 is 46.2% and breaks down as follows:
35.2 - Reconciliation between statutory and effective tax rate
2009
IRES
Profit before tax
Statutory tax rate
IRAP
2008
Total
1,369,174
27.5%
1,275,223
27.5%
Contingent liabilities and other
permanent differences
2.7%
2.0%
Non-deductible
taxes (municipal property tax)
0.3%
0.3%
Effect of increases/(decreases)
on statutory tax rate
Tax rate for the year
Realignment of tax bases of assets
and liabilities and carrying amounts
and taxation for previous years
30.5%
20.2%
50.7%
29.8%
21.1%
50.9%
-3.7%
-0.8%
-4.5%
-5.7%
-1.8%
-7.5%
Effective rate
26.8%
19.4%
46.2%
24.1%
19.3%
43.4%
In 2009 the Company exercised the option granted by art. 15 of Legislative Decree 185/2008, converted into Law 2/2009,
and realigned the tax bases of assets and liabilities with their corresponding statutory amounts. This realignment regarded:
• differences arising on first-time application of IAS/IFRS in the financial statements for the year ended 31 December 2005,
which were rendered deductible by the payment of substitute tax of 49,350 thousand euros; following this transaction,
the deferred tax that gave rise to a component of income, totalling 91,199 thousand euros, was recalculated;
• differences between the carrying amounts of assets and liabilities and their tax bases arising after adoption of IAS/IFRS
(at 31 December 2008 amounting to a taxable amount of approximately 253 million euros), which became deductible in
5 equal instalments from 2009 and in the four subsequent years, with an expected saving of current tax expense of
approximately 70 million euros; the exercise of this option did not have any effect on the income statement, in that the
reduction in current tax expense is offset by expenses deriving from the elimination of the corresponding deferred tax
assets recognised in the years from 2005 to 2008.
Finally, as a result of art. 6 of the Law Decree of 29 November 2008, converted into Law 2 of 28 January 2009, following
the decision to claim a rebate of the non-deductible 10% of IRAP paid in 2007, in 2009 the related credit of 10,270 thousand
euros has been recognised in the income statement for 2009 (note 12).
The positive impact of the above non-recurring events was, therefore, 52,119 thousand euros.
The high tax rate for IRAP is essentially due to the non-deductibility of the main components of staff costs and other related
expenses, totalling approximately 4,883 million euros (4,643 million euros in 2008).
36 - RELATED PARTY TRANSACTIONS
IMPACT OF RELATED PARTY TRANSACTIONS ON THE FINANCIAL POSITION AND
RESULTS OF OPERATIONS
The impact of related party transactions on the financial position and results of operations is shown in the following tables
36.1 and 36.4.
Name
Direct subsidiaries
CLP ScpA
Consorzio Servizi Telef. Mobile ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
Docutel SpA
Poste Assicura SpA
PostelPrint SpA
Uptime SpA (1)
Financial
assets
Joint venture.
Other
assets
Financial
liabilities
Liabilities
attrib. to
BancoPosta
Trade
payables
Other
liabilities
3,491
349,089
101,673
47,553
-
9,452
2,817
30
839
496
319
654
270
4,032
724
359
42,340
88
757
169,821
10,952
3,065
1,968
1,978
11
-
25,114
120
99,295
5,774
1,986
2
804
9,586
1,842
758
320
139
-
371
188
1,489
33,258
267
191
36
4,805
64
825
38,550
1,543
933
4,525
4,387
2,744
600
9
55,388
2,497
4
969
110
9,251
8,612
82
1,470
33,529
6,877
3
54,486
3,786
5,425
339
23,329
30,481
175
3,164
4
4,985
-
-
3
25
9
1,122
62
249
40
-
20
-
5
1,203
1
6
33
3,179
-
1
213
1,649
52,612
-
74
-
-
45
-
-
20
-
-
-
5,546,358
5,546,358
-
1,029,078
957,534
71,544
755,381
67
1
173
-
7,768
7,768
-
840,235
-
(120,194)
(120,194)
692,650
-
158,359
158,359
19
2,520
-
497,712
497,712
52,693
-
24
85
14
27,732
1,994
17,632
142
5
7
54
15
61
2
-
-
-
14,194
1,760
18,312
921
248
82,908
1,464
-
-
5,546,358
(84,542)
1,998,463
(6,298)
3,459
985,995
671,679
541,346
589,288
Associates
Consorzio ANAC
Docugest SpA
Related parties external to the Company
905,549
Direct relations
905,549
102,230
Coni Servizi
Consap SpA
Enav SpA
EUR SpA
Alitalia Group
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
RAI Group
Sogei Group
Provisions for doubtful debts due from
external related parties
Total
1,509,585
(1)
Assets
attrib. to
Trade
BancoPosta receivables
330
Name
Direct subsidiaries
CLP ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
Financial
assets
Assets
attrib. to
Trade
BancoPosta receivables
Other
assets
Financial
liabilities
Liabilities
attrib. to
BancoPosta
Trade
payables
Other
liabilities
4,671
346,706
95,362
62,441
-
2,665
3,405
30
982
555
783
698
426
2,431
1,223
342
35,377
98
1,812
197,914
11,851
6,491
2,944
1,075
11
-
18,010
61
160,856
4,120
2,244
2
1,351
17,769
100,058
15,219
5,077
651
-
41
66
1,824
7,913
99
1,285
105
663
146
1,482
28,464
179
1,196
26,316
13,519
4,982
513
10
70,902
1,985
5
2,003
110
23,353
10,198
12
1,165
25,823
3,406
6
28,896
1,050
252
276
11,442
36
1,262
175
2,245
7,509
-
-
21
1
823
63
166
-
-
5
6
7,518
5,128
1
197
517
57,409
153
-
-
2
111
40
-
-
16
-
-
-
769,500
Direct relations
769,500
-
6,804,803
6,804,803
-
1,283,237
1,201,427
81,810
-
6,540
6,540
-
-
(16,170)
(16,170)
-
172,319
172,319
12,140
12,140
-
-
938,601
68
5
308
30
21,632
526
32,661
347
9
6
16
108
17
5
1
-
679,517
-
86,936
-
21
41
882
669
16,390
953
435
61,607
183
1,034
2
-
14,929
59,828
-
(5,071)
-
-
-
-
2,555 1,004,935
172,232
493,554
98,277
Docutel SpA
Poste Assicura SpA
PostelPrint SpA
Associates
Consorzio ANAC
Docugest SpA
Uptime SpA
Coni Servizi
Consap SpA
Enav SpA
EUR SpA
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
Invitalia Group
RAI Group
Sogei SpA
Provisions for doubtful debts due from
external related parties
Total
(1)
101,143
-
-
(108,090)
1,379,823
6,804,803
2,440,741
Joint venture.
related parties external to the Company and regarding trading relations amount to 46,974 thousand euros (122,833
thousand euros at 31 December 2008).
36.3 - Impact of related party transactions on the results of operations
2008
Revenue
Costs
Capital expenditure
Name
Other
operating
Revenues
income
Finance
income
PPE
Intangible
assets
Goods
and
services
Current expenditure
Other
Staff operating
costs
costs
Finance
costs
Direct subsidiaries
CLP ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
PosteMobile SpA
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Postecom SpA
Postel SpA
PosteShop SpA
Poste Voice SpA
Docutel SpA
Poste Assicura SpA
PostelPrint SpA
Uptime SpA (1)
Associates
Docugest SpA
Consorzio ANAC
20,741
551
30
276
182
215
558
130
3,939
10,141
70
210
212,311
1,052
12,518
5,737
100
2,062
2,117
92
1
739
142
55
522
267
540
1,340
1,573
253
1,224
1,589
1,592
598
166
20
100
17,870
4,558
1,693
4,714
765
6
-
24
1,107
19,365
86
12
131,994
783
5
10,035
6
85,144
40,945
9
4,132
92,220
9,421
47,393
25
402
4
67,285
1,372
40
605
21
-
6
273
77
17
76
1,470
2
1
113
473
5
1,825
1
93
26
1
164
36
404
1,577
385
19
-
8
22
22
62
186
80
179
820
-
-
1,231
-
1
1,033
116,161
24
-
777
-
1
-
-
-
-
-
-
-
-
-
-
366
366
58
35
119,868
119,868
2,230
-
-
54
-
87
2,286
-
18,191
48,109
46,010
2,099
-
19,988
19,988
38,746
-
13
-
-
77,524
-
8,634
48
26,936
5,519
38,939
677
809
52,955
17,711
-
-
13
19
156
-
-
14,115
146,505
83,009
30,549
752,952
20,229
51,109
63,744
911,994
Direct relations
839,827
72,167
1,364,705
6
Coni Servizi
1,231
Consap SpA
124
Consip SpA
28
Enav SpA
224
EUR SpA
84
86
Alitalia Group
298
Anas Group
559
Enel Group
138,700
Eni Group
21,584
Equitalia Group
52,681
594
Finmeccanica Group
172
Fintecna Group
303
116
4,297
Italia Lavoro Group
11
RAI Group
17,692
SACE Group
80
Sogei Group
409
Sogin Group
Sicot Srl
56
11
Total
(1)
Joint venture.
2,787,248
332
36.4 - Impact of related party transactions on the results of operations
2009
Revenue
Costs
Capital expenditure
Name
Other
operating
Revenues
income
Finance
income
PPE
Intangible
assets
Goods
and
services
Current expenditure
Other
Staff operating
costs
costs
Finance
costs
Direct subsidiaries
3,497
765
30
16
186
239
64
181
1,344
226
208
222,993
107
1,253
13,365
9,713
5,792
1,734
2,088
483
1
460
137
456
691
385
1,326
1,849
490
1,527
1,177
456
1,466
419
72
4
14,588
1,798
1,217
4,210
2
-
327
11
12,005
-
14
143,380
6,310
7
12,047
6
90,140
37,186
16
81
93,789
4,552
8
46,675
180
293
382
51,164
119
83
193
1,045
1,432
22
1,692
96
96
14
1
7
1,093
23
17
10
8
10
224
159
1
683
19
14
7
57
7
73
6
2
-
19
19
1
45
63
154
707
789
-
-
1,251
1
1,416
113,229
-
845
-
1
147
-
-
-
-
-
-
-
-
-
815,152
Direct relations
712,907
102,245
-
7,272
6,042
1,230
-
85,762
85,762
-
-
-
-
-
25,200
22,764
2,436
-
228
228
-
CLP ScpA
EGI SpA
Mistral Air Srl
Poste Energia SpA
Poste Link Scrl
Poste Tributi ScpA
Poste Tutela SpA
Poste Vita SpA
Poste Voice SpA
Postecom SpA
Postel SpA
PosteMobile SpA
PosteShop SpA
Docutel SpA
Poste Assicura SpA
PostelPrint SpA
Associates
Consorzio ANAC
Docugest SpA
Uptime SpA
Coni Servizi
Consap SpA
Consip SpA
Enav SpA
EUR SpA
Anas Group
Enel Group
Eni Group
Equitalia Group
Finmeccanica Group
Fintecna Group
Invitalia Group
Italia Lavoro Group
RAI Group
SACE Group
Sogei Group
Sogin Group
Sicot Srl
1,600,209
7
995
124
20
190
3
668
132,352
19,988
80,178
775
138
277
162
41
1,943
22
9,398
93
25
2
63
9
60
278
13
-
2,409
-
38,012
-
7,227
18
91
2,842
1,896
35,351
678
1,567
55,252
11
15,188
-
28,529
-
26
2
-
32,712
-
Total
2,924,996
22,530
105,850
42,224
20,839
713,752
31,401
29,386
33,968
(1)
Joint venture.
related parties external to the Company and regarding trading relations amount to 3,570 thousand euros (67,466 thousand
The nature of the principal transactions with related parties external to the Company is summarised below.
• Amounts received from the MEF primarily refer to payment for carrying out the Universal Service Obligation (USO), the
management of postal current accounts, as reimbursement for electoral tariff reductions and subsidies, and as payment
for delegated services, integrated e-mail services, the franking of mail on credit, and for collection of tax returns.
• Amounts received from CDP SpA primarily refer to payment for the collection of postal savings deposits.
• Amounts received from the Enel Group primarily refer to payment bulk mail shipments, unfranked mail, franking of mail
on credit and postage paid mailing services, etc. The costs incurred primarily regard the supply of electricity and gas.
• Amounts received from the Equitalia Group primarily refer to payment for the integrated notification service and for
unfranked mail. The costs incurred primarily regard electronic transmission of tax collection data.
• Amounts received from the ENI Group primarily refer to payment for bulk mail shipments, etc. The costs incurred
primarily regard the supply of fuel for motorcycles and vehicles and the supply of gas.
• Purchases from the Finmeccanica Group primarily refer to the supply, by Elsag Datamat SpA, of equipment, maintenance
and technical assistance for mechanised sorting equipment, and systems and IT assistance regarding the creation of
document storage facilities, specialist consulting and software maintenance, and the supply of software licences and of
hardware.
KEY MANAGEMENT PERSONNEL
Key management personnel refers to Directors of Poste Italiane SpA and the Company’s first-line managers. The related
remuneration, including social and pension contributions, is as follows:
36.5 - Remuneration of key management personnel
Item
2009
2008
Remuneration paid in short term
Post-employment benefits
13,268
522
11,804
3,261
Total
13,790
15,065
No loans were granted to key management personnel during the year and at 31 December 2009 the Company does not
report receivables in respect of loans granted to such personnel.
TRANSACTIONS WITH STAFF PENSIONS FUNDS
Poste Italiane SpA and its subsidiaries that apply the National Collective Labour Contract are members of the Fondoposte
Pension Fund, which is the national supplementary pension fund for non-managerial staff. As indicated in article 14, paragraph
1 of Fondoposte’s Bylaws, the representation of members among the various officers and boards (the General Meeting of
delegates, the Board of Directors, Chairman and Deputy Chairman, Board of Statutory Auditors) is shared equally between the
workers and the companies that are members of the Fund. Among other things, the Fund’s Board of Directors takes decisions
regarding:
• the general criteria for the allocation of investment risk and for investment policies;
• the choice of fund manager and depositary bank.
334
37 - OTHER INFORMATION
POSTAL SAVINGS DEPOSITS
Postal savings deposits collected in the name of and on behalf of Cassa Depositi e Prestiti are shown in the table below,
which breaks deposits down by category.
37.1 - Postal savings deposits
Item
31 Dec 2009
31 Dec 2008
Postal savings books
Interest-bearing Postal Certificates:
91,119,705
192,617,608
102,904,310
89,713,298
81,800,655
185,542,713
95,696,530
89,846,183
Total
283,737,313
267,343,368
31 Dec 2009
31 Dec 2008
68,911
88
48,762
534,968
550,112
183,128
33
88,404
601,128
466,931
1,202,841
1,339,624
The above amounts include accrued and unpaid interest.
COMMITMENTS
Purchase commitments given by Poste Italiane SpA are summarised below:
37.2 - Purchase commitments
Item
Investment property
Intangible assets
Goods and services
Property leases
Total
Future commitments with respect to property leases (see note 29.4), which may generally be broken off with six months
notice, break down as follows according to due date:
37.3 - Property lease commitments
Item
31 Dec 2009
31 Dec 2008
Lease rentals due:
Within 12 months
Between 2 and 5 years
After 5 years
132,483
351,652
65,977
134,583
312,245
20,103
Total
550,112
466,931
GUARANTEES
Personal guarantees issued by Poste Italiane SpA are as follows:
37.4 - Guarantees
Item
31 Dec 2009
31 Dec 2008
Sureties and other guarantees issued:
Issued by Poste Italiane SpA in its own interests in favour of third parties
Issued by banks in the interests of Poste Italiane SpA in favour of third parties
Letters of patronage issued by Poste Italiane SpA in the interests of subsidiaries
7,267
35,454
9,899
6,517
48,012
16,058
Total
52,620
70,587
31 Dec 2009
31 Dec 2008
Securities subscribed by customers held by third-party banks
Other assets
21,486,200
76,301
23,659,959
368,890
Total
21,562,501
24,028,849
THIRD-PARTY ASSETS
37.5 - Third-party assets
Item
Other third-party assets almost entirely relate to revenue stamps that the Company was required to sell and distribute
under the Agreement with the MEF of 17 March 1995. From 1 January 2007, the 2007 Budget Law requires stamp duty
to be paid electronically via the issue of a specific receipt by the authorised intermediary. As a result, based on the
instructions contain in a memorandum issued by the tax authorities on 29 December 2006, from 1 January 2007 Poste
Italiane SpA has suspended the distribution and sale (including on its own behalf) of all revenue stamps. Despite the fact
that there is limited market demand for the stamps held in stock, Poste Italiane SpA is required to continue to hold them.
The balance of Other third-party assets includes 10,025 thousand euros representing the cost of goods owned by the
subsidiary, PosteShop SpA, and sold through post offices.
ASSETS IN THE PROCESS OF ALLOCATION
At 31 December 2009 the Company has paid a total of 364,568 thousand euros in claims on behalf of the Ministry of
Justice (399,265 thousand euros at 31 December 2008), for which, under the agreement between Poste Italiane SpA and
the MEF, the Company – which has already been reimbursed by the Treasury – is awaiting acknowledgement of the
relevant account receivable from the Ministry of Justice.
LITIGATION
In 2008 the Company was charged with violation of certain requirements of Legislative Decree 231/2001. The charges
regard the failure to implement appropriate preventive measures at organisational and operational level, thereby permitting
the deliberate overestimation of postal savings deposits in 2003, in order to earn an undue amount of income. Whilst it is
not possible to predict the outcome of the trial, which is underway at the Court of Naples, it should be noted that the
financial and commercial effects of the dispute have been reflected in the financial statements for previous years, and that
Poste Italiane SpA has for some time now taken appropriate organisational and operational steps to comply with the
requirements of Legislative Decree 231/2001.
336
PROCEEDINGS PENDING BEFORE THE AUTHORITIES
European Commission
In execution of the European Commission’s Decision of 16 July 2008 regarding State aid, and in accordance with
instructions from the Company’s shareholder, on 15 January 2009 Poste Italiane SpA paid the amount due to the MEF. The
Company’s appeal is pending before the European Community Court.
Antitrust Authority
On 27 April 2009 the Antitrust Authority notified Poste Italiane SpA that it had begun an investigation of an alleged violation
of art. 3 of Law 287/90 or art. 82 of the EU Treaty, relating to bill payment services. The Authority intends to investigate
whether or not the “strategy by which Poste Italiane – thanks to its dominant position and its ability to determine the
standards for payment forms that exclude their use outside the postal network -, applies contractual conditions that are
unjustifiably onerous and that exclude competitors“. Poste Italiane SpA has given certain commitments pursuant to art. 14
ter of Law 287/90, aimed at curbing any anti-competitive behaviour. On 28 December 2009 the Antitrust Authority made
binding the commitments formally given by Poste Italiane SpA, with the aim of facilitating the use of alternative channels
for the payment of bills. The Authority has adjudged the commitments sufficient to remove the threat to competition and
has terminated its investigation without ruling that an infringement had taken place or imposing any penalty.
The Antitrust Authority ruling of 15 October 2009 launched an investigation of Poste Italiane SpA in relation to deregulated
postal services, in order “to determine whether the Company's actions entailed an abuse of a dominant market position
pursuant to art. 82 of the EC Treaty”, with specific reference to the Posta Time product and participation in certain
tenders. Consequently, the Company sought to demonstrate to the Authority the "rationale" behind its commercial
initiatives and, in the belief that such actions fully comply with competition legislation, on 1 March 2010 it nevertheless
decided to give certain specific commitments aimed at curbing any anti-competitive behaviour. If these commitments are
accepted the procedure may be closed without any penalties for Poste Italiane SpA. The outcome of the subsequent
phases of the investigation, which is currently underway, is awaited, but the procedure is expected to be completed by
18 November 2010.
Bank of Italy
inspectors’ findings with its own observations and proposals regarding the initiatives it intends to take in order to resolve
the problems identified, which will be periodically provided and continuously updated. In a letter dated 13 August 2009 the
Supervisory Authority acknowledged the Company's intention to undertake necessary corrective measures regarding
BancoPosta's organisational and accounting structure in order to bring it fully into line with the relevant legislation, and also
advised Poste Italiane to continue its planning and/or implementation of projects aimed at overcoming the specific issues
that emerged during the inspection. On 25 February 2010 the Company notified the Bank of Italy on the state of progress
as of 31 December 2009 of the planned activities.
In tandem with these activities, a joint working group was set up, including the Bank of Italy, the shareholder, the Ministry
of the Economy and Finance, and Poste Italiane SpA, in order to assess the best means for identifying legally independent
capital for BancoPosta, in order to apply prudential supervision requirements and protect BancoPosta's creditors.
DISCLOSURE OF FEES PAID TO THE INDEPENDENT AUDITORS
In 2009 Poste Italiane SpA independently adopted guidelines governing the procedures for awarding contracts to the
Independent Auditors or companies within its network. The guidelines also require the Company to provide a summary of
the contracts awarded.
The following table shows fees, broken down by type of service, payable to PricewaterhouseCoopers SpA and companies
within its network for 2009.
37.6 - Disclosure of fees paid to the Independent Auditors
Item
Entity providing service
Audit
878
-
Voluntary audits or audit-related services
90
-
Services other than audit
1,077
Total
(*)
Fees
(*)
2,045
The above amounts do not include incidental expenses and charges.
The services other than audit mainly regard a long-term contract, awarded by Poste Italiane SpA via a tender process, for
monitoring the quality of the Priority Mail and Posta Target services.
38 - EVENTS AFTER 31 DECEMBER 2009
Events after the end of the reporting period are described in the above notes. No other material events have taken place
after 31 December 2009.
338
ended 31 December 2009 pursuant to art.154-bis of Legislative Decree 58/1998
1. The undersigned, Massimo Sarmi, as Chief Executive Officer, and Alessandro Zurzolo, as
Manager responsible for Poste Italiane SpA’s financial reporting, having also taken account of
the provisions of art.154-bis, paragraphs 3 and 4 of Legislative Decree 58 of 24 February 1998,
attest to:
– the adequacy with regard to the nature of the Company and
– the effective application of the administrative and accounting procedures adopted in
preparation of the separate and consolidated financial statements during 2009.
2. In this regard, it should be noted that:
2.1 as highlighted in the Internal Control-Integrated framework model issued by the Committee of
Sponsoring Organizations of the Treadway Commission, which represents the international
standard body of generally accepted principles of internal control, as expressly referred to by
Confindustria (the main organization representing Italian manufacturing and services companies) in
its Guidelines for the role of Manager responsible for financial reporting pursuant to art.154-bis of
the Consolidated Law on Finance, an internal control system, no matter how well designed and
implemented, can only provide reasonable, not absolute, assurance that the company’s objectives
will be achieved, including true and fair financial reporting;
2.2 a number of activities, including checks on the effective application of administrative and
accounting procedures, are in progress.
3. We also attest that:
3.1 the separate and consolidated financial statements:
a) have been prepared in compliance with the International Financial Reporting Standards
endorsed by the European Union through EC Regulation 1606/2002, issued by the European
Parliament and by the Counsel on 19 July 2002;
b) are consistent with the underlying accounting books and records;
c) give a true and fair view of the financial position and results of operations of the Company
and its subsidiaries included in the basis of consolidation.
3.2 the Directors’ Report on Operations includes a reliable operating and financial review of the
Company and of the Group, as well as a description of the main risks and uncertainties to which
they are exposed.
Rome, Italy 24 March 2010
Chief Executive Officer
Massimo Sarmi
Manager responsible for financial reporting
Alessandro Zurzolo
(This certification has been translated from the original which was issued in accordance with Italian legislation)
Attestation of the separate and consolidated financial statements | Statutory Auditors’ Report 339
STATUTORY AUDITORS’ REPORT
ON THE FINANCIAL STATEMENTS OF POSTE ITALIANE SPA
FOR THE YEAR ENDED 31 DECEMBER 2009
To the Shareholders of Poste Italiane SpA
During the year ended 31 December 2009 the Board of Statutory Auditors carried out its activities in accordance with the
law, based on the recommendations issued by the Italian Accounting Profession.
In particular, the Board of Statutory Auditors states that:
• we have verified compliance with the law and the articles of association and with correct corporate governance
principles;
• we attended 11 Board of Directors’ meetings during 2009, which were conducted in accordance with the articles of
association, the related legislation and regulations governing their conduct and, in accordance with our duties, can provide
reasonable assurance that the actions approved comply with the law, the articles of association and correct corporate
governance principles. We also attended two General Meetings of shareholders held in ordinary session and one General
Meeting held in ordinary and extraordinary session;
• we obtained information on the overall operating performance and outlook, and on the most significant transactions, in
terms of size or nature, carried out by the Company and its subsidiaries from the Directors and/or authorised personnel
during the 22 meetings held in 2009 (and the 6 meetings held in 2010 prior to preparation of this Report), which were
attended by the magistrate from the Italian Court of Auditors, who is responsible for carrying out controls pursuant to art.
12 of Law 259/1958. As a result, in accordance with our duties, we can provide reasonable assurance that the actions
carried out comply with the law, the articles of association and correct corporate governance principles;
• we held specific meetings with PricewaterhouseCoopers SpA, the firm appointed by the General Meeting of 14 May
2007 as the Company’s independent auditors for the three-year period 2007-2009. The independent auditors were invited
to participate in all meetings of the Board of Statutory Auditors, which did not reveal significant aspects or information to
be included in this Report;
• we held specific meetings with the Supervisory Board set up under Legislative Decree 231/2001 and subsequent
amendments, above all to discuss the application and updating of the Company’s organisational model;
• we obtained information from the Company’s management on the operating performances of subsidiaries, which did not
reveal significant aspects or information to be included in this Report;
• we examined the Company’s organisational structure and its effective functioning, verifying its adequacy via both analysis
of company documents and the collection of information during specific meetings with heads of the various functions,
including the head of the Internal Auditing department, taking account of the Bank of Italy’s findings described below;
• we assessed the administrative and accounting systems, including the capacity of such accounting system to provide a
fair view of operations, and compliance with correct corporate governance principles, via direct observation and the
gathering of information from departmental heads, from the independent auditors and from the Manager responsible for
financial reporting;
• we monitored implementation of the initiatives adopted by the Company in order to resolve the issues raised by the Bank
of Italy in February 2009;
• we complied with the requirements established by art. 52, paragraph 1 of the Consolidated Banking Act.
We also declare that during the year under review:
• we did not receive reports pursuant to art. 2408 of the Italian Civil Code;
• the Board was required to issue opinions pursuant to art. 2389 of the Italian Civil Code, based on the proposals of the
Remuneration Committee.
340
The financial statements for the year ended 31 December 2009, which have been prepared under the International
Financial Reporting Standards (IFRS) adopted by the European Union and contained in the related EU Regulations, report
profit for the year of 736,660,139 euros (720,796,454 euros for the year ended 31 December 2008).
Equity at 31 December 2009, including the profit for 2009, amounts to 4,076,920,460 euros (3,088,988,401 at 31
December 2008).
In view of the fact that we were not assigned responsibility for analysing the contents of the financial statements on their
merits, we have verified the general presentation and overall compliance with the laws relating to form and content.
The Board also verified compliance with the regulations governing preparation of the Directors’ Report on Operations.
The Board obtained information on the criteria used to determine provisions for impairments, liabilities and charges, and
the related uses. As reported in the notes, such provisions were made to cover losses or liabilities that are either likely or
certain to be incurred but are uncertain as to the amount or as to the date on which they will arise.
With regard to trade receivables due to the Company from the Ministry of the Economy and Finance and the Cabinet
Office, amounting to over 2 billion euros, as reported in the notes to the financial statements, the Board observes that,
despite the fact that the Company’s full title to the receivables and its related rights remain unaffected, the progressive
increase in such items over time has both required the Company to finance increasing volumes of working capital, with a
negative impact on cash management and returns on liquidity, and to partially write down the receivables in question to
take account of the risks deriving from the timing and method of payment used by the above debtors.
After also taking account of the attestation of the financial statements under review issued by the Chief Executive Officer
and the Manager responsible for financial reporting, in addition to the results of the audit procedures carried out by the
independent auditors, PricewaterhouseCoopers SpA, as described in the opinion accompanying the financial statements,
dated 6 April 2010, in accordance with our duties we recommend that you approve the financial statements for the year
ended 31 December 2009, as prepared by the Board of Directors.
Dear Shareholders,
With regard to the appropriation of profit for the year, the Board wishes to express its agreement with the proposal of the
Board of Directors.
This General Meeting marks the end of the term of office of the Board of Statutory Auditors elected by the General
Meeting of 14 May 2007.
In thanking you for your confidence and trust, we would like to express our very best wishes for the important activities
carried out by the Company and the Group of which it is the Parent.
Rome, Italy 9 April 2010
THE BOARD OF STATUTORY AUDITORS
D.ssa Silvana Amadori
- Chairwoman
Dr. Ernesto Calaprice
- Auditor
Dr. Francesco Ruscigno
- Auditor
Statutory Auditors’ Report | Independent Auditors’ Report 341
INDEPENDENT AUDITORS’ REPORT
342
Independent Auditors’ Report 343
POSTE ITALIANE
Registered Office
viale Europa, 190
00144 Roma - Italia
tel +39 06 5958.1
fax +39 06 5958.9100
e-mail info@posteitaliane.it
www.poste.it
Corporate information
Share capital: 1.306.110.000 euro
Rome Companies Register no. 584565/1996
Business Registration Number REA 842633
Tax Code 97103880585
VAT Number 01114601006
This report is printed on recycled paper

Annual Report 2009

Transcription

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