1.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner 24/06/2016 CONSTRUCTING AN EFFECTIVE LOGISTIC NETWORK Key factors to profitably innovate in the mail industry Pochtovaya Troika 2009 St. Petersburg, July 2 nd 2009

2.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Finmeccanica Overview Finmeccanica is Italy’s leading industrial Group in the advanced technology sector. Finmeccanica spa is the industrial and strategic holding company which coordinates the work of Group businesses operating in: ENERGY & TRANSPORT DEFENCE SYSTEMS ELECTRONICS & AUTOMATION SPACEHELICOPTERSAERONAUTICS  Order backlog: Euro 42,9 billion  Revenues (FY08): Euro 15 billion — FNM in brief figures: —  One of the top ten global operators, and second in Europe, in aerospace, defence and security  European leader for satellite and space services  One of the world's leading groups in the fields of helicopters and defence electronics  One of the world’s “top 50” by R&D investment  R&D annual expenditure: 12% of revenues  Workforce: 73,000 employees

3.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Elsag Datamat in Postal Automation  Mail Processing Systems  Postal Logistics Systems  Physical & Networking/IT Security Systems High Performance & Specialised solutions for the Postal Industry with a Turn Key approach Elsag Datamat is the Finmeccanica centre of excellence in the design, implementation and sale of highly innovative products, solutions and systems in automation, logistics, security, ICT  Revenues (FY08): Euro 699 million  Employees: 3786

4.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Postal Industry Scenario: Trends and Challenges A growing competition A demand focused on tailored made and innovative products and services Integration of different technologies & media A growing pressure on prices Economic/Financial Crisis Market Liberalization Physiological decrease in letters volumes Flat trend in flats Slight increase in parcels segment MAIN TRENDS CHALLENGES

5.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Postal Industry Clustering: Threat for Top- Emerging Countries Currently there are many postal operators in the world with very different economic business and political structures THE THREAT: Top emerging postal markets are highly attractive for foreign postal operators, facing their decreasing domestic volumes

6.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Postal Operators Responses Targets & Strategies Reduction of Operative Costs - Process Optimization & Integration MARKET TRENDSMARKET CHALLENGES Demand Push in Volumes and Innovation in Services CORE POSTAL VALUES & PROCESS EXPLOITATION DIVERSIFICATION WORLD ADVANCED POSTAL OPERATORS

7.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Core logistics assets exploitation and improvement A potential path for operators (focus on top-emerging/advanced): –LOGISTIC CONTROL: automated & equipped sorting centers, ICT investments, business & operations processes development plan, extended, complex and structured territory monitoring & control –INNOVATION PUSH: quick win postal network set up with an attention on volume push enablers –NEW SERVICES DEVELOPMENT: financial services, social services, e-government, insurance, telecom services etc. CORE POSTAL VALUES & PROCESS EXPLOITATION DIVERSIFICATION Postal Operators Responses From Strategies to Actions

8.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Hand held terminal Large Mailers Sorting Centers Recipient Sorting (processing, handling, sequencing)Preparation & AcceptanceDelivery & Customer Service GPS & OCR truck plate auto-detector Sorting Equipments OCR & Videocoding GPS & OCR truck plate auto-detector Post OfficeLast Mile TRACKING PROCESS SORTING CENTERS & OTHER SENSORS/EQUIPMENTS Tray - Shipment Association Loading Mail item unique Recognition & Sorting Tray-Mail Item Association Preparation & Feeding Postal Counter Tray- Mail Item Association NETWORK Tracking Station Tracking station Stock Management Tray - Shipment Association Mail delivery Logistic Control (1/2) Global Tracking Architecture TRANSPORTATION

9.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Logistic Control (2/2) Control Room Mailbox collection Registered mail tracking Mail flows planning and monitoring Production & Transport planning and monitoring (ex.: Machine monitoring, Video coding monitoring) Data analysis and report The Logistics Control Room is an innovative infrastructure able to collect and integrate information coming from all steps of the mail process, from different ICT platforms and integrate it all in one unique cockpit to support decisions The Best Practice of Poste Italiane

10.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Innovation Push Business Communication Suite Hybrid Mail Key Benefits Related Value Added Innovations Volume Push from big mailers (Mail process optimization & outsourcing) Logistic network efficiency (sorting & delivery costs/time reduction) Service Quality (coping with large countries extension) Communication suite Advanced Document Design development (Transpromo) Multi-channel, process control and integrated customer care management system Evolutionary direct marketing Integration with the postal administration’s platform for value added services

11.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner New Services Development Diversification Leveraging on Core Assets A multi-service platform… Financial services Social services e-government Insurance services Telecom services … that leverage on core assets Post Offices Logistic Network ICT network Postal skilled Labor Force

12.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Path Towards Innovation Leverage on core logistics assets Automated Sorting Centers Logistics Network Hybrid Mail Centers New Post-Offices Successful Postal Operators make the difference by distinguishing themselves for their core values & strategies, however… “However beautiful the strategy, you should occasionally look at the results.” Sir Winston Churchill

13.  Elsag Datamat 2009 All rights reserved. Reproduction in whole or in parts is prohibited without written consent of the copyright owner Andrea Campora Elsag Datamat International Sales Vice President andrea.campora@elsagdatamat.com Thank You for Your Attention