Corporate Governance Code for listed companies published by Borsa Italiana, the provisions of Legislative
Decree 58 of 24 February 1998 (the Consolidated Law on Finance) where applicable, and the Supervisory
responsible for processing the related products and services, partly through the coordination of local operating centres, including: • three Unified Service Automation Centres, where the payment slips for bills paid at post offices are processed; • two Centres for the processing of cleared cheques; • two Multi-service Centres located in Turin and Ancona, which carry out certain back-office processes
PosteMobile is the Group’s mobile operator which, in keeping with its planned development, has gradually switched from being an Enhanced Service Provider (or ESP) to operating as a Full MVNO (a Full Mobile Virtual
The decision to set up a foundation stems from a desire to make the use of the Company’s resources in the social sphere more efficient and rational, by avoiding duplication and fragmentation, encouraging non-profit organisations to play an proactive role, supporting the creation and development of volunteer networks within Group companies, and fostering joint participation and involvement by customers and citizens.
In continuation of the rationalisation process, the number of post offices was reduced in 2015 from2 13,233 at
The stronger US dollar, slowing economic activity in importing countries and excess supply have helped to drive down commodity prices, giving added impetus to a redistribution of purchasing power internationally, with net importing countries enjoying an increase, whilst commodity exporters have seen a reduction.
Revenue from sales and services and insurance premium revenue 27,007 24,622 2,385 9.7%
The cost of goods and services is down 2.2% from €2,648 million in 2014 to €2,590 million in 2015, primarily reflecting reductions in the cost of funding, represented by interest paid to customers by BancoPosta RFC, and in purchases of goods and services.
Regarding the digital services the Poste Italiane Group provides via Postecom SpA, development and provision of the offering continued. In particular, ahead of the upcoming activation of the Public System for Digital
Recorded Mail generated revenue of €971 million, marking a 2.6% decrease (down €26 million on 2014), due to the reduced amount of mail sent by the Public Administration as a result of cost cutting, and the poor
Furthermore, with Resolution 699/15/CONS issued on 15 January 2016, regarding the contract with IZI SpA, the regulator extended the contract to include additional services relating to the survey of Ordinary Mail delivery times in municipalities where alternate day delivery is in operation (the first stage of the rollout of such a service) for the period 1 February – 30 June 2016.
Pursuant to the extension referred to in article 16, paragraph 3 of the Service Contract for 2009-2011, and as confirmed by Law 190 of 23 December 2014, article 1, paragraph, 274, letter a) (the 2015 Stability Law) and endorsed by the above European Commission Decision, the Service Contract for 2009-2011 remained in force
Court. On 10 February 2016, with sentence no. 1930 in first instance, the First Section of the Lazio Regional
Wednesday and Friday in one week, and delivery on Tuesday and Thursday in the following week), which, when fully implemented, will affect up to a quarter of Italy's population, will be rolled out in three phases: the first, in October 2015, will take in 256 municipalities in the Lombardy, Piedmont, Friuli Venezia Giulia and
Poste Italiane for alleged violation of certain legal obligations relating to provision of the Universal Postal
Net losses /recoveries on impairment of loans and advances (9) - (9) n/s
Bank deposits by resident Italian savers fell in 2015, with aggregate deposits totalling approximately €1,697 billion in December 2015, representing a year-on-year decline of 0.6%. This negative performance is due to falling investment in bonds, only partially offset by growth in deposits by resident customers. Funding costs
Anima, called BancoPosta Evoluzione 3D. This is again a flexible fund, which aims to accumulate capital through a gradual increase in its exposure to equities – over a period of 5 years from the end of the subscription period – and then through active management of the resulting portfolio, whilst remaining within precise risk limits.
Revenue generated by Financial Services is down from the €5,358 million of 2014 to €5,188 million in 2015.
Class I and V investment and savings products (traditional separately managed accounts), whilst the contribution from sales of Class III products was marginal. However, in a market where products with a significant investment component are proving the most popular (“multi-line” and “unit-linked” products), the company diversified its offering with the introduction of a new “multi-line” product, sales of which are still marginal, but which is expected to make a growing contribution to overall inflows in the future.
The figures presented by the Autorità per le Garanzie nelle Comunicazioni – the Italian Communications
Company’s majority shareholder,the MEF,in accordance with the 2015 Stability Law, relating to the return of amounts deducted from the Parent Company’s retained earnings in 2008 and transferred to the MEF, pursuant to European Commission Decision C42/2006. Further details on this are provided in the section 12,
“Other information”. The reduction in working capital is also due to the collection of fees receivable in return for the Parent Company’s distribution of postal savings products on behalf of Cassa Depositi e Prestiti, which under the agreement signed on 4 December 2014 are now invoiced on a quarterly, rather than a half-yearly, basis.
The above-mentioned processes will continue during 2016, with the involvement of additional staff belonging to all functions and from all local areas.
The agreement provides for sustained dialogue with the labour unions, at national and local level, which will take place in tandem with gradual implementation over the course of the Plan.
In line with previous years, an employee desiring to take advantage of the new arrangements keeps his or her job and returns any amounts received from the Company under the court order.
The “New staff allowance guidelines” were also issued, aimed at defining an integrated system of financial and practical initiatives benefitting members of staff in documented situations of need. During the year, 11 allowances were granted in accordance with the guidelines. Finally, the commitment to gender diversity initiatives was strengthened via training courses, events, testimonies and working groups on diversity management issues in collaboration with the Valore D association, of which the Company is a member.
and non-routine maintenance work, making improvements to meet workplace needs and those related to the services provided, as well as initiatives aimed at improving staff health and safety. Moreover, it was necessary to implement around 3,000 non-routine maintenance initiatives (heating and air-conditioning units, electrical and fire prevention equipment, etc.) during the year, as well as initiatives to restore normal service at post offices where criminal acts had taken place.
The GRM model involves an integrated risk management process, implemented according to a continuous and dynamic approach. It exploits the existing risk management systems applicable to each segment
In recent years, Poste Italiane has designed an integrated Information Security Governance model for the
PosteMobile was subject to an inspection by the Authority at its offices. The company, which was inspected as a third party in the proceedings, submitted a request to participate in order to demonstrate its lack of responsibility for any alleged violation. The hearing was held on 18 September 2015, and on 29 October 2015 the Authority released the results of its investigation. With the ruling adopted at a meeting held on 16
Moreover, on 23 December 2015, H3G also submitted a writ of summons to the Court of Rome, citing Poste
Contracts Code and current legal provisions)” regarding all contracts awarded in the IT sector after January 2013. A reply was submitted by the set deadline.
Ministry of the Economy and Finance (as per art. 1, paragraph 31, of Law 266 of 23 December 2005 “2006
Economy and Finance, including 24 failures to report suspect transactions and two in relation to violations of the rules governing limits on the use of cash and bearer instruments.
Poste Italiane's commitment to environmental protection is a vital element of its growth, and therefore all business activities carried out entail implementation of environmental sustainability actions and policies inspired by principles of saving, recovery and recycling, innovation and security.
Fleet management is also a key component of the Group's green strategy, which over the years has seen deployment of a growing number of low environmental impact vehicles. In this regard, 2,750 alternative fuel vehicles were used in 2015, including 1,000 electric-powered and 1,750 natural gas-powered vehicles.
Extraordinary General Meeting of 14 April 2011 and recently amended by the Extraordinary General Meeting of 31 July 2015. As a result of the new Supervisory Standards applicable to BancoPosta RFC, issued by the
In terms of BancoPosta RFC's organisational structure, the existing organisational model set out in the
RFC’s organisational structures. This Plan has been presented to the Board of Statutory Auditors and submitted for the attention of the Board of Directors.
(*) 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. (**) Insurance premium revenue is reported gross of outward reinsurance premiums.
Gamma Free: a range of non-universal services covering the shipment and delivery of signed-for mail prepared by the customer using special pre-franked packaging purchased at post offices or from other authorised vendors. Gamma Free includes the following services: Postafree, which regards items of up to 2 kg to be delivered within 3 to 5 working days; Paccofree, regarding items of up to 30 kg to be delivered within 1 to 2 working days.
INS (Integrated Notification Service): this is a range of services for managing the whole notification process for administrative and legal process and registered mail with advice of receipt.
UCITS (Undertakings for Collective Investment in Transferable Securities): this acronym refers to the EU
complies with EU law regarding three principal aspects: it is subject to the same rules in every EU country, and is thus freely distributable in Europe; it may invest in numerous financial instruments, provided that they are provided for by law; it contains restrictions on investments with the aim of protecting investors.
The consolidated financial statements of the Poste Italiane Group and the separate financial statements of
(“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 as of 22 March 2016, the date on which the Board of Directors of
accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.” (IAS 8, para. 5). Recognition of the same estimates in the statements of profit and loss for previous years has been made possible thanks to developments in the accounting system used (see IAS 8, para. 50).
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 profit or loss on a straight-line basis over the lease term.
(or settled) 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 an impairment loss was recognised in profit or loss, the value of the financial instrument is reinstated and the reversal recognised in profit or loss. 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, with movements in the reserve accounted for in “Other components of comprehensive income”. The classification of an asset as current or non-current depends on the term to maturity of the financial instrument. Financial instruments expected to be realised within twelve months of the end of the reporting period are, in any event, classified as current assets.
This exemption applies to the recognition and measurement of forward electricity contracts entered into by the subsidiary, Poste Energia SpA, (and, as of 31 December 2015, by EGI SpA) if the following conditions have been met:  the contract involves the physical supply of a commodity;  the entity has not entered into an offsetting contract;  the transaction must be entered into in accordance with expected purchase and/or sale or usage requirements.
, 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
(iv) The amount receivable following cancellation of the EC Decision of 16 July 2008 and the interest due as a result of the sentence of the European Court of 30 September 2013, the impact of which on the Parent
Goodwill, including goodwill arising on consolidation, is tested annually to assess whether or not it has suffered any impairment to be recognised in profit or loss.
In the test carried out at 31 December 2015, use was made of an assumed growth rate of 1.34%, while the WACC for each CGU tested for impairment, determined in accordance with best practices, ranged from 6.98% to 7.60%.
IAS 1 – Presentation of Financial Statements as amended by Regulation (EU) no. 2406/2015. The amendments aim to improve the effectiveness of disclosure and to encourage companies to apply professional judgment in determining the information to be disclosed in their financial statements when applying IAS 1. In particular, the amendments clarify the guidelines contained in IAS 1 on the materiality, the aggregation of items, the presentation of subtotals, the structure of the financial statements and the disclosure on the accounting policies adopted. Amendments concern also the information required for the section on the other components of other comprehensive income. Specifically, the share of other comprehensive income pertaining to associates and joint ventures accounted for with the equity method, indicating which of those amounts will or will not be recycled subsequently to profit and loss.
C6 – NET MOVEMENT IN TECHNICAL PROVISIONS FOR INSURANCE BUSINESS AND OTHER CLAIM EXPENSES...................................................................................................................................................................................... 204
Investments accounted for using the equity method [A4] 214 214 1 1
Employee termination benefits and pension plans [B7] 1,361 - 1,478 -
Use of provisions for risks and charges [tab. B6] (392) (245)
Cash and cash equivalents at end of year [tab. A10] 3,142 1,704
An investment in an associate or a joint venture is accounted for using the equity method. Any difference between the cost of acquisition of the investment and the net fair value of the investee’s identifiable assets and liabilities is accounted for as follows: a) goodwill related to an associate or a joint venture is included in the carrying amount of the investment.
Ind u st r ia l and commercia l equ ipment
 Financial Services, relate primarily to the financial assets of BancoPosta RFC
The balance in question is much higher than that at 31 December 2014, mainly due to the new pension payment dates for civil servants, whereby the greater amount paid by INPS, and recognised as customers’
Cassa Depositi e Prestiti, less €45 million receivable from the MEF for Interest-bearing Postal Certificates issued on its behalf.
Movements in derivative instruments attributable to BdM-MCC SpA are as follows: tab. A5.4 - Movements in derivative financial instruments (€m)
Ot her invest ment s Equ it y inst ru ment s Tot al
Other investments relate to units of mutual investment funds, totalling €1,616 million, of which €1,172 million consists of equity funds and €385 million of bond funds subscribed to entirely by Poste Vita SpA and allocated to the insurance company’s separately managed accounts. The remaining balance is represented by the fair value of units of property funds, totalling €59 million.
Available-for-sale financial assets, held primarily by the Parent Company, and the related movements break down as follows: tab. A5.9 - Movements in available-for-sale financial assets (€m)
 Receivables for overdrawn current accounts are amounts due to BancoPosta for temporarily overdrawn current accounts largely due to recurring BancoPosta bank charges, including accumulated sums, which have largely been written down, that BancoPosta is in the process of recovering.
- With reference to the services rendered in 2012, AGCom recognised a net cost incurred by the
Interest accrued on IRES refund [C12.1] - 47 47 - 70 70
As described in note B2, the receivable due from the MEF, totalling €535 million, authorised by the 2015
Actuarial gains and losses on employee termination benefits of - Fees to be amortised attributable to Poste Vita SpA and Poste (39) - (5) (34) - (5) (29)
- Effects of tax consolidation arrangement - - - - - - -
Details are as follows:  The fair value reserve regards changes in the fair value of available-for-sale financial assets which, during 2015, showed gains totalling €1,591 million as follows: – €1,538 million regarding the net fair value gain on available-for-sale financial assets attributable to the Group’s Financial Services segment, consisting of €1,412 million in gains on securities and €126 million in gains on equity instruments; – €49 million regarding the net fair value gain on available-for-sale financial assets attributable to the
Provisions for disputes with third parties 383 73 1 (32) (26) 399
Exchange. In particular: o bonds with a nominal value of €750 million, placed through a public offering for institutional investors at a below par price of 99.66 on 18 June 2013. The bonds have a term to maturity of five years and pay annual coupon interest at a fixed rate of 3.25%. The fair value of this borrowing at o bonds with a nominal value of €50 million subscribed by investors through a private placement at par on 25 October 2013. The term to maturity of the loan is ten years and the interest rate is 3.5% for the first two years and variable thereafter (EUR Constant Maturity Swap rate plus 0.955%, with a cap of 6% and a floor of 0%). The interest rate risk exposure was hedged as described in section A5; the fair value of this borrowing at 31 December 2015 is €55 million.
In terms of fair value hierarchy, which reflects the relevance of the sources used to measure assets, this amount qualifies for level 2.
Company;  €10 million in grants approved by the competent public authorities in favour of the Parent Company, whose matching costs have not been incurred yet;  €5 million (of which €4 million relates to income to be recognised after 2015) relating to the Parent
 Revenue from the distribution of loan products relates to commissions received by the Parent Company on the placement of personal loans and mortgages on behalf of third parties.
(*) in view of a reconciliation with the statement of cash flows, for 2015 Gains on disposals have a zero balance, after deduction losses for €2 million.
This item breaks down as follows: tab. C6 - Movements in technical provisions for insurance business and other claims expenses (€m)
I t em Year end ed 31 Decemb er 2015 Year end ed 31 Decemb er 2014
The 2015 Stability Law (Law 190/2014) permitted the deduction of personnel expenses for staff employed on permanent contracts from the IRAP tax base. In addition, in Circular 22E of 9 June 2015, the tax authorities clarified that “Provisions relating to personnel expenses included in the financial statements for periods prior to the entry into effect of this legislation, which had not been considered deductible on the basis of existing rules governing IRAP, will be considered deductible – from the tax year following that underway at 31
Income/(expenses) realigned through profit or loss - - - - - - -
Income tax expense calculated on actuarial gains on employee termination benefits recognised in equity decreased by €26 million. Therefore, the decrease of equity in the year under review due to income tax expense amounted to €210 million.
Other related parties external to the Group 17 3 2 - - 1 14 40 3 1
N. Non-cu rrrent net d eb t ( K+L+M) ( 1,254) ( 1,262)
The following table shows fees, in thousands of euros, broken down by type of service, payable to
BancoPostaFondi SGR SpA and payable by investors, amounting to €85 thousand.
Profit for the period amounted to €418 thousand tab. 3.8.2 - List of investments accounted for using the equity method (€000)
Items to be reclassif ied in the Statement of profit or loss for the year
Net cash f low from/(for ) f inancing activities and shareholder transactions [f] (1,250,742) 516,389 - of which related party transactions (419,046) 77,349
Unrestr icted net cash and cash equivalents at end of year 1,291,185 286,666
BancoPosta RFC exclusively by Poste Italiane SpA without third-party contributions. BancoPosta's operations consist of those listed in Presidential Decree 144 of 14 March 2001, as amended
BancoPosta RFC’s Separate Report is prepared in application of Bank of Italy Circular 262 of 22 December 2005 - Banks' Financial Statements: Layouts and Preparation, as amended. The application of these regulations, whilst in compliance with the same accounting standards adopted by Poste Italiane SpA, requires the use of a different basis of presentation for certain components of profit or loss and the statement of financial position compared with the basis of presentation adopted for the statutory financial statements.
Furthermore, BancoPosta RFC’s Regulation states that “In view of the absence of non-controlling interests in
 Withdrawal from the Telma-Sapienza Scarl consortium on 14 December 2015. Art. 9, paragraph 1 of the company’s Articles of Association states that “the member’s withdrawal is effective from the day after written notification is provided to the management board; from this time, the interest held by the
Cash Flow (DCF) method. For the determination of 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). An assumed growth rate of 1.34% was used in the tests carried out at 31 December 2015 (1% at 31 December 2014). Based on the available projections and the results of the impairment tests carried out, the investments in EGI SpA, Postel SpA and SDA Express Courier SpA have been written off, resulting in a total reduction of €76 million (tab. C8). In particular:  in the case of SDA Express Courier SpA, an impairment loss on the investment of €63 million has been recognised, based on the value of equity as the best approximation of value in use which, in the circumstances, was deemed not to be lower than the company’s recoverable value;  in the case of EGI SpA, an impairment loss on the investment of €9 million has been recognised, based on the value of equity adjusted for unrealised after-tax gains on the property it owns as the best approximation of value in use, prudently deemed to be a valid indicator of the company’s recoverable value;  in the case of Postel SpA, value in use (identified as the company’s recoverable value), determined on the basis of the latest available projections and in accordance with the above method, was €4 million lower than the carrying amount of the investment. In determining value in use, a WACC of 7% was used (5.70%
Consorzio per i Servizi di Telefonia Mobile ScpA (2) 51.00 120 - 120 61 61 -
The operations in question regard the financial services provided by the Company pursuant to Presidential
Amounts payable due to thefts from post offices regard the Company’s liability to the MEF on behalf of the Italian Treasury for losses resulting from theft and fraud, totalling €158 million. This liability derives from cash withdrawals from the Treasury to make up for the losses resulting from these criminal acts, in order to ensure that post offices can continue to operate. Movements in this liability during the year are as follows: During 2015, Poste Italiane SpA made repayments to the Italian Treasury for thefts that took place up to 31 December 2014, amounting to €3 million, and in the first half of 2015, totalling €3 million, as well as tab. A5.1.1 - MEF on behalf of Italian Treasury (€m)
 Other financial receivables of €1,208 million break down as follows: Guarantee deposits, totalling €864 million relate to €857 million provided to counterparties in asset swap transactions (with collateral provided by specific Credit Support Annexes) and €7 million provided to counterparties in repurchase agreements (with collateral contemplated by specific a Global Master
During the year under review, the effective portion of interest rate hedging instruments recorded an overall fair value gain of €12 million reflected in the cash flow hedge reserve.
Company took on the obligation to pay a fixed rate of 4.035%.
 Payments for delegated services relate to fees accrued solely in the year under review for treasury services performed by Bancoposta on behalf of the state in accordance with a special agreement with the MEF, which was renewed on 11 June 2014 for the three-year period 2014-2016.
 Amounts due from staff under fixed-term contract settlements consist of salaries to be recovered following the agreements of 13 January 2006, 10 July 2008, 27 July 2010, 18 May 2012, 21 March 2013 and 30 July 2015 between Poste Italiane SpA and the trade unions, regarding the re-employment by court order of staff previously employed on fixed-term contracts. This item refers to receivables with a present value of €239 million from staff, from INPS and pension funds recoverable in the form of variable instalments, the last of which is due in 2040. Details of the individual agreements are provided below:  Amounts that cannot be drawn on due to court rulings include €55 million in amounts seized and not assigned to creditors in the process of recovery, and €13 million in amounts stolen from the Company in
 Movements in provisions for doubtful debts due from others are as follows: As described in note B2, the receivable due from the MEF, totalling €535 million, authorised by the 2015
Adjustments for change in IRES tax rate introduced by 2016 Stability Law - - 114 - 114
Information on the BancoPosta RFC reserve is provided in note 4.2.
Movements in employee termination benefits are as follows: The interest component is recognised in finance costs. The current service cost, which from 2007 is paid to pension funds or third-party social security agencies and is no longer included in the employee termination benefits managed by the Company, is recognised in personnel expenses. Net uses of provisions for employee termination benefits amount to €63 million, of which €3 million to substitute tax and €1 million to transfers to a number of Group companies.
The main actuarial assumptions applied in calculating provisions for employee termination benefits are as follows: tab. B5 - Movements in provisions for employee termination benefits (€m)
 €784 million relating to BancoPosta’s ordinary borrowing operations via repurchase agreement transactions with primary financial institutions, in order to optimise the match between investments and short-term movements in current account deposits by private customers.
 Tax collection and road tax payables relate to amounts due to collection agents, the tax authorities and regional authorities for payments made by customers.
Deferred income attributable to BancoPosta RFC (€14 million) regards fees on Postemat and Postepay
 Automated franking by third parties or at post offices relates to revenue from the mailing of correspondence franked by customers or at post offices using a franking machine.
 Other revenue from current account services primarily relates to charges on current accounts (€211 million), fees on amounts collected and on statements of account sent to customers (€121 million), annual fees on debit cards (€27 million) and related transactions (€68 million).
This item refers to the following: (1) In 2015, returns on the Company’s deposits with the MEF were negative. Consequently, for the year under review, total interest expense in relation to deposits with the MEF amounts to €1 million. Of this amount, €0.2 million relates to cash deposits and has been recognised in finance costs.
Consumables and goods for resale 28 33 tab. C4.4 - Interest expense (€m)
Net provisions for risks and charges made/(released) 82 84 for disputes with third parties [tab. B4] 35 39 for non-recurring charges incurred by BancoPosta [tab. B4] 45 28 for other risks and charges [tab. B4] 2 17
The tax rate for 2015 is 24.35% and consists of: tab. C10 - Income tax expense (€m)
Key management personnel consist of Directors, members of the Board of Statutory Auditors, managers at the first organisational level of the Company and Poste Italiane’s manager responsible for financial reporting. The related remuneration - not including that of the Board of Statutory Auditors, which are shown separately, gross of expenses and social security contributions, of such key management personnel as defined above is as follows (€000): No loans were granted to key management personnel during 2015; at 31 December 2015, the Company does not report receivables in respect of loans granted to key management personnel.
An analysis of the industrial net funds/(debt) attributable to capital outside the ring-fence at 31 December 2015, in accordance with ESMA guidelines, computed on the basis of paragraph 127 of the recommendations contained in ESMA document 319 of 2013, is provided below: tab. 4.5.2 - Net debt/(funds) (€m)
Paragraph 42 of IAS 32 provides that “A financial asset and a financial liability can be offset and the net amount presented in the statement of financial position when, and only when, an entity: (a) currently has a legally enforceable right to set off the recognised amounts; and
, which, among other things, requires definition of a Risk Appetite
The RAF consists of a framework that defines, in keeping with the maximum acceptable risk, the business model and strategic plan, the risk appetite, risk tolerance thresholds, risk limits, and risk management policies, together with the processes needed to define and implement them.
Available-for-sale financial assets exposed to the risk in question regard primarily fixed rate instruments held almost exclusively by the Parent Company, by Poste Vita SpA and by BdM-MCC SpA.
BancoPosta RFC;  €820 million in euro zone government bonds held by BdM-MCC SpA and Bancoposta Fondi SpA SGR; Within the context of financial assets at fair value through profit or loss, fair value interest rate risk concerns a portion of the fixed rate investments of Poste Vita SpA, totalling €7,559 million. These consist of investments with a fair value of €5,665 million, relating to coupon stripped
In addition to using the above sensitivity analysis, Poste Italiane SpA and the Poste Vita group monitor spread risk by calculating its maximum potential losses, through an estimate of Value at Risk (VAR) on statistical bases, over a 1-day time horizon and at a 99% confidence level. Risk analysis performed through VaR takes into account the historical variability of the risk (spread) in question, in addition to modelling parallel shifts of the yield curve.
Financial assets at FV through profit or loss 7,904 7,920 13
Held-to-maturity financial assets - 12,886 - 12,886 - 14,100 - 14,100
Specifically, with respect to financial assets, the cash flow interest rate risk primarily relates to:  investment by the Parent Company of the funds deriving from the current account deposits of Public
As regards Poste Assicura SpA’s insurance business, which commenced operations in 2010, the expected growth of the portfolio and the different degrees of risk associated with the products distributed has required the company to adopt a highly prudent approach to reinsurance. In particular, it has entered into pro rata reinsurance treaties with major reinsurance providers, establishing the amounts to be ceded based on the specific type and size of the risk to be assumed, backed up by excess-loss or stop-loss treaties to cover risks of a certain size (such as accident policies or so-called catastrophic risks). In addition, when defining the guarantees offered, the assumption of specific types of risk has been mitigated by limiting the size of pay-outs in the event of certain specific types of claim.
Uptime SpA’s shareholders voted by a majority to call an Extraordinary General Meeting for 16 March 2016 to terminate operations and wind-up the company.
Parent Company an amount of €8 million, plus monetary revaluation and legal interest. The sentence was notified on 9 September 2015. The Company filed an appeal and the date of the first hearing is pending. In the meantime, the tax authorities collected the sum under the guarantee and requested payment of the remaining sum pursuant to the decision. The Company complied by paying the required amount.
Authority. Exemption from VAT thus no longer extends to deregulated services. In this case, the legislator, in compliance with EU law, has also exempted Poste Italiane’s conduct prior to entry into effect of the above amendment from application of the new legislation. For the purposes of VAT, the Parent Company cannot, therefore, be punished for conduct which, until 21 August 2014 (the date on which Law 116/2014 came into effect), did not comply with EU legislation, which has only been transposed into Italian law following the above amendment.
Section 2 – Financial assets held for trading – Item 20 ............................................................................................ 381
Section 3 – Financial assets designated at fair value – Item 30 ............................................................................. 381
10. Interest and similar income 1,544,985,186 1,662,196,692 20. Interest and similar expense (54,907,970) (123,179,869)
Profits/(Losses) on financial assets/liabilities designated at fair value - 120. Net interest and other banking income 5,409,025,366 5,434,065,898 130. Net losses/recoveries on impairment of: (10,955,347) 215,152 a) loans and advances (10,955,347) 215,152 b) available-for-sale financial assets - c ) held-to-maturity financial assets - d ) other financial transactions - 140.
170. Net losses/recoveries on property, plant and equipment - 180. Net losses/recoveries on intangible assets - 190. Other operating income/(expenses) (37,100,929) (18,838,733)
- dividends received on investments - - - disposal of held-to-maturity financial assets 1,196,000,003 1,206,000,000 - disposal of property, plant and equipment - - - disposal of intangible assets - - - disposal of business division - 2.
Italiane SpA approved the BancoPosta RFC Separate Report as part of the Company’s Annual Report.
The provision of services to BancoPosta RFC by Poste Italiane SpA functions is governed by specific General
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.
There are two types of post-employment benefit: defined contribution and defined benefit plans.
The actual amounts of items for which the above estimates and assumptions have been applied may differ
Assessments of expected taxable income depend on factors which may change over time, impacting on the valuation of the deferred tax assets in the Separate Report.
The price inferred in this manner would be adjusted through the application of the discount implicit in the process involved in aligning the value of the unquoted shares to be measured with that of the quoted ones.
1. Financial assets held for trading - - - - - 2. Financial assets designated at fair value - - - - - 3. Available-for-sale financial assets 30,648 1,838 111 28,602 205 1. Financial liabilities held for trading - - - - - 2. Financial liabilities designated at fair value - - - - - -
Financia l asset s d esignat ed at fa ir valu e
Balance at 31 Decemb er 2015 Balance at 31 Decemb er 2014
IAS 39 requires financial instruments to be initially recognised at fair value, which is equal to the “transaction price”. The fair value of financial instruments not designated at fair value through profit or loss at the date of recognition normally coincides with the transaction price (the amount collected or paid). In the case of financial instruments designated at fair value through profit or loss and classifiable in level 3 (fair value determined with reference to unobservable inputs), any difference between the fair value and the transaction price generates a so-called “day one profit/loss”. This difference is recognised in profit or loss if it arises from changes in the factors on which market participants base their considerations in setting prices (including time).
Transact ion Type/ Amou nt s Balance at 31 Decemb er 2015 Balance at 31 Decemb er 2014
December 2015, securities with a nominal value of €497 million and a fair value of €544 million are encumbered, as they have been delivered to counterparties for use as collateral in connection with repurchase agreements.
Members that each of them will be paid a consideration and, at that date, the amount due to Poste
Decemb er 2014 1. Deb t secu r it ies 12,886 14,100 a) Governments and Central Banks 12,886 14,100 b) Other public entities - a ) Governments and Central Banks - b ) Other public entities - -
The balance at 31 December 2015 consists of €215 million payable to Cassa Depositi e Prestiti, less €45 million receivable from the MEF for Interest-bearing Postal Certificates issued on its behalf;  payables in connection with thefts of €158 million. This is the liability to the MEF on behalf of the
Cred it r isk Pr ice r isk Mu lt iple r isks 1. Available-for-sale financial assets 281 - - - - x 47 x x 3. Held-to-maturity financial assets x - - x - x - x x
Provisions to profit or loss for (240) (30) (270) (163) (90) (253)
Decemb er 2014 2.1 Deferred tax assets recognised in the year 6 1 a) relating to previous years - b ) due to changes in accounting policies - 2. 2 New taxes or tax rate increases - 3. 1 Deferred tax assets derecognised in the year - b ) write-downs of non-recoverable items - c ) due to changes in accounting policies - 3. 2 Reduction of tax rate (7) a ) transformation into tax credit pursuant to Law 214/2011 - 13. 4 Movements in deferred tax liabilities through profit or loss
Section 2 – Due to customers – Item 20 2.1 Due to customers: analysis
The sub-item, “Other assets, Other transactions” includes accrued interest for the year receivable from Poste
F inancia l asset s 3. Available-for-sale financial assets 426 - 426 385 (4) 381 4. Held-to-maturity financial assets - - - - - -
110. Non-cu rrent asset s held for sa le : - - a ) changes in fair value - - b ) reversal to profit or loss - - 120.
There were no impaired financial assets on BancoPosta RFC's books at 31 December 2015.
Gross exposu re Specific provisions Net exposu re Gross exposu re
Ot her cou nt er part ies 1. Guaranteed on-balance sheet credit exposures: 2. Guaranteed off-balance sheet credit exposures: Tot al ( 1)+( 2) Mort gages
BancoPosta RFC is a buyer of cash flow hedges of a forecast transaction to hedge this type of cash flow interest rate risk.
Financial liabilities held for trading - - - - - - - 31 Decemb er 2015 var iab ilit y 26,428 32,415 ( 1,283) 493 - - ( 1,283) 493 2014 effect
Tot al var iab ilit y 9,147 91 ( 48) 5,968 88 ( 62)
The sensitivity of financial instruments to price risk is analysed by sensitivity stress testing based on historical volatility during the year, considered to be representative of potential market movements.
The operational aspects arising from the circumstances are being carefully monitored and appropriate risk mitigation measures are being progressively implemented.
Element s t o b e d ed u ct ed from CET1
Ministry of the Economy and Finance 74 - 152 - - - - -