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UNICREDITO ITALIANO GROUP Built to deliver Alessandro Profumo - CEO

UNICREDITO ITALIANO GROUP Built to deliver Alessandro Profumo - CEO. Morgan Stanley European Banks Conference London - April 6 th , 2005. UCI AT A GLANCE. ROE 17.9%, Cost/Income Ratio 57.3%. Home markets in Italy and Central Europe. Global player in Asset Management Euro 128 bn AUM.

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UNICREDITO ITALIANO GROUP Built to deliver Alessandro Profumo - CEO

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  1. UNICREDITO ITALIANO GROUPBuilt to deliver Alessandro Profumo - CEO Morgan Stanley European Banks Conference London - April 6th,2005

  2. UCI AT A GLANCE • ROE 17.9%, Cost/Income Ratio 57.3% • Home markets in Italy and Central Europe • Global player in Asset Management • Euro 128 bn AUM • 70,543 employees (29,540 in New Europe) • 4,528 branches (1,373 in New Europe) • Main market shares in Italy: • customer loans 10.8% • household mortgages 17.7% • customer deposits 10.1% • mutual funds 13.8% TOTAL 2004 REVENUES: Euro 10.4 bn • Main market shares in New Europe: • Deposits Mutual funds • Poland 12.7% 34.5% • Croatia 29.2% 39.8% • Turkey 4.7% 12.1% Retail 42% Private & AM 11% New Europe Corporate 18% • Current market cap around Euro 29 bn 29% 2004 data

  3. ORGANIZATION BUILT TO LEVERAGE OPPORTUNITIES IN ALL OUR CUSTOMER SEGMENTS AND MARKETS Corporate Retail Private & AM New Europe • Pekao (Poland) • Zagrebacka (Croatia) • Bulbank (Bulgaria) • KFS (Turkey) • UniBanka (Slovakia) • UC Romania • Zivnostenska (Czech Rep.) • Clarima(1) • UBM • Pioneer • UBCasa(2) • Locat(3) • Xelion(4) • Human Resources • Processes and organization • Central operations (UPA) • IT • Real Estate • Purchasing process Global Banking Services division (1) Consumer Finance (2) Retail residential mortgages (3) Leasing (4) Asset Gathering from affluent clients

  4. A SUCCESSFUL GROWTH PATH INTERNATIONALIZATION STATURE Weight of New Europe on Group Revenues Risk weighted assets, Euro bn 149.7 17.6% CAGR 98-04 +10% 83.5 0% 2004 2004 1998 1998 PRODUCTIVITY PROFITABILITY Net Income per employee, Euro x 000 EPS, Euro 31.3 0.336 26.3 CAGR 98-04 +10% 0.193 2004 2004 1998 1998

  5. 2004 ACHIEVEMENTS • STRONG VOLUME GROWTH • Assets under management up 9.0% • Customer loans up 10.8% • STRENGTHENED COMPETITIVE POSITION • Lending market share in Italy (1) up 37 bp • Mutual funds market share in Italy (2) up 39 bp • ENHANCED REVENUE MIX • Interest income excl. dividends up 3.7% • EFFECTIVE COST MANAGEMENT • Headcount down 677 in 2H04 VISIBILITY AND SUSTAINABILITY OF EARNINGS BOLSTERED BY DIVERSIFICATION OF REVENUE MIX AND BUSINESS PORTFOLIO (1) Pro-forma, including Euro 2.5 bn relative to the Locat securitization and Euro 0.5 bn relative to the District Bonds (1) Calculated according to the “old” classification methodology adopted by Assogestioni

  6. 2004 - IMPROVING PROFITABILITY QUARTER AFTER QUARTER % ch. on 4Q03 FY04 Y/Y ch. 4Q04 Euro mln Total Revenues 10,375 -0.7% +5.3% 2,679 Operating Income 4,434 -5.8% +9.6% 1,124 Net Income 2,131 +8.7% +65.0% 627 ROE(1) 17.9% +20 bp EPS(2)(Euro) 0.336 +0.026 DPS(3)(Euro) 0.205 +0.034 Core Tier I ratio 7.35% +38 bp (3) To be proposed to the AGM (1) Calculated on end of period net equity excluding profit for the period (2) N° of shares in 2004 net of 87 mln treasury shares

  7. 2004 PERFORMANCE ON TRACK VS. 2007 STRATEGIC PLAN up-front revenues as % of total 12.5 Weight of up-front revenues continues to drop 7.8 Revenues 6.7 2004 2003 2007 Italy, total customer loan mkt share, % 12.60 Service quality Customer satisfaction drives market share gains 11.11 10.74 2004(1) 2003 2007 Cost Income ratio, % 57.3 Process redesign provides key to efficiency improvements 55 50 Efficiency 2004 2003 2007 Cost of risk, bp 76 63 60 Assets Cost of risk reduction 64(2) 62(1) 2007 2004 2003 (1) Pro-forma, including Euro 2.5 bn relative to the Locat securitization and Euro 0.5 bn relative to the District Bonds (2) Pro-forma, excluding Parmalat provisions

  8. GROUP RESULTS BENEFITING FROM BUSINESS DIVERSIFICATION CONTRIBUTION TO GROUP NET INCOME BY DIVISION CONTRIBUTION TO GROUP NET INCOME PRE CORPORATE CENTER AND ELISIONS Euro mln y/y % ch. Corporate 949 -2.7% Retail 545 -6.7% New Europe 398 +29.2% Private & AM 390 +58.5% TOTAL GROUP 2,131 +8.7%

  9. CAPITAL ALLOCATION – DIRECTING CAPITAL TO HIGHER-RETURN BUSINESSES ABSORBED CAPITAL(1) y/y % ch.(2) Euro 2004 RORAC(4) 2003 2004 Total Group 9.6 bn 9.8 bn +2.5 36.9% 30.8% Divisional weight Corporate 51.3% 49.1% +0.9 19.8% Marginal RARORAC 17.7% 17.4% Retail 27.7% 28.9% +10.0 Cost of equity 8.58% NE 12.4% 12.9% +9.3 Private & AM 8.6% 9.1% +12.0 Private & AM NE Retail Corporate Group Excess Capital(3) 0.2 bn 0.8 bn (1) End of period, net of minorities (3) Pay-out ratio: 60% (2) On Absorbed Capital (4) Return on risk adjusted capital = Marginal Rarorac + Cost of Equity

  10. GROW MARKET SHARE • FOCUS ON SUSTAINABLE REVENUES • IMPROVE EFFICIENCY THROUGH ACTIVE COST MANAGEMENT RETAIL DIVISION OBJECTIVES MAIN ACTIONS • Leverage the skills of “Category Killers” (mortgages and consumer credit) • Focus on small business customers(1) • Implement two brand new “hunter” • networks • Increase customer satisfaction • Enhance product innovation/redesign • Focus on products with longer revenue streams • Redesign processes to facilitate headcount reduction • Rationalize branch network (1) Turnover < 3 mln Euro

  11. FOCUS ON VOLUME/MARKET SHARE GROWTH TO SUSTAIN NET INTEREST INCOME • Mortgages +22.9% y/y • Consumer credit +31.2% y/y • Small Business +10.8% y/y • EXCELLENT LENDING GROWTH (+16.1% Y/Y) … • Market share on: • household mortgages(1) at 17.71%(+54 bp) • new flows of consumer credit(2) at 4.3% (+395 bp) • … WITH HIGHER MARKET SHARES… • 4Q average spread(3) on: • new mortgages at 1.28% for UCB (stable q/q) and 1.43% for UBCasa (-3 bp q/q) • small business(4) s/term loans at 8.37% (+5 bp q/q) • revolving cards at 10.62% (+6 bp q/q) • … AND GOOD SPREAD RESILIENCE IN ALL KEY MARKETS… 2.78% Avg. Euribor 2.46% 2.16% 2.15% 2.14% 2.11% 2.09% 2.09% 630 • … SUSTAINING STEADY NET INTEREST INCOME GROWTH (ex. dividends) 612 596 593 570 563 557 547 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 (1) Group market share, related to mortgages to households as of Bank of Italy definition in table TDME0070 of the monthly bulletin (3) Management accounts (4) Management accounts, includes also maximum overdraft charges (2) Calculated on ASSOFIN data

  12. IMPROVED CUSTOMER ACQUISITION CAPABILITIES & SUSTAINED FOCUS ON PRODUCTS WITH LONGER REVENUE STREAMS • UniCredit Banca: • Overall acquisition rate increased from 5.4% (2003) to 6.7% (2004) • 30,000 net new Small Business customers • IMPROVED CUSTOMER SATISFACTION POSITIVELY IMPACTING CHURN RATE SALES OF SEGR. ACCOUNTS INVESTING IN FUNDS, Euro bn • STRONG FOCUS ON WEALTH MANAGEMENT PRODUCTS GENERATING RECURRING REVENUES 3.5 0.1 2004 2003

  13. COST MANAGEMENT EFFORT ALREADY PRODUCING TANGIBLE RESULTS WITH FURTHER BENEFITS EXPECTED IN 2005 OPERATING COSTS, Euro mln 2,956 2,957 2,930 • EFFECTIVE COST MANAGEMENT ALREADY TANGIBLE… 2003(1) 2004 2002(1) TOTAL STAFF -610 vs. June 04 25,467 25,136 • … WITH BENEFITS FROM STAFF REDUCTION EXPECTED IN 2005 24,857 2004 FEB 05 1H04 UCB BRANCHES 128 more branches to be closed in 2005 2,754 -163 • BRANCH NETWORK REORGANIZATION ALREADY UNDERGOING, IN LINE WITH 3 YEAR PLAN TARGETS 2,591 Branches closed 2004 2003 (1) Pro-forma to make perimeter comparable with 2004

  14. CORPORATE DIVISION OBJECTIVES MAIN ACTIONS • Implement new service model: tighten relationship and improved customer understanding • BECOME “THE FINANCIAL PARTNER” FOR OUR CUSTOMERS • Increase lending volumes with focus on M/L term lending while maintaining spreads • Focus on share of wallet • IMPROVE REVENUE MIX • Leverage the “service-revenue multiplier” • Rebalance UBM’s revenue stream

  15. 2004 ACHIEVEMENTS TOTAL LOANS (ex Repos), Eurobn 65.9 +4.9% y/y • UBI share of wallet at 12.4% (vs. 12.3% as atDec03) • 2004 average lending spreads at 2.34% (+8bp vs 2003) 3 62.8 • LOAN GROWTH WITH HIGHER SPREADS Securitization Of which: M/L2 25.6 +9.2% y/y 23.4 Dec03 Dec04 • Net interest income: +4.6% y/y • Net commission +5.8% y/y • Commercial focus on most recurring service revenues • - Foreign trade services: Euro 135 mln, +24% y/y • - Transaction services: Euro 71 mln, +7.8% y/y • GROWTH OF LEAST VOLATILE REVENUE COMPONENTS • Higher weight of Institutional Derivatives and Investment Banking • Lower weight of Corporate Derivatives • MORE BALANCED REVENUE COMPOSITION FOR UBM

  16. PRIVATE & ASSET MANAGEMENT DIVISION OBJECTIVES MAIN ACTIONS • Italy: • Provide high-quality wealth management advice and services to all Italian clients • Streamline Asset Gathering • GROW ASSET BASE • ACHIEVE PERFORMANCE EXCELLENCE • US: round out product range • International: focus on institutional mandates and open architectures • IMPROVE EFFICIENCY THROUGH ECONOMIES OF SCALE • New Europe: manage the transition from non-managed to managed assets

  17. 2004 ACHIEVEMENTS FIN. ASSETS, Euro bn TOTAL REVENUES, Euro mln • STRONG GROWTH IN TOTAL FINANCIAL ASSETS AND REVENUES 1,167 +7.5% 172 +12.0% 1,085 155 2004 2004 2003 2003 • 1st quartile rank for mutual funds sold in Italy vs Italian peers • EXCELLENT PERFORMANCES • 32nd percentile rank on avg. worldwide for Pioneer “long funds” Dec03 Dec04 Italy – Mutual Funds 13.39% 13.76% • INCREASED MKT. SHARE Poland – Invest. Funds 30.36% 34.46% Xelion – Net Sales 13.66% 25.23% C/I RATIO, % OPERATING INCOME, Euro mln 429 +9.8% • IMPROVED EFFICIENCY AND STRONG OPERATING PERFORMANCE 64.1 63.2 390 -77bp 2004 2004 2003 2003 All figures at unchanged FX

  18. NEW EUROPE DIVISION A single strategy fine-tuned to compete successfully in each market/bank OBJECTIVES MAIN ACTIONS • Leverage existing customer base in larger NE banks • Broaden customer base in smaller NE banks • Develop dedicated service models for Retail & Small Business • Enrich product offering • Bid for Yapi Kredi in Turkey and assess new opportunities in selected countries • Optimize IT systems, purchasing processes & back office • STRENGTHEN ORGANIC GROWTH ON SELECTED CUSTOMER SEGMENTS • EVALUATE POTENTIAL VALUE- CREATING ACQUISITIONS • MAINTAIN STRICT RISK & COST CONTROL

  19. 2004 ACHIEVEMENTS All figures stated at unchanged FX • Net loans +10.5% y/y (+18.5% at current FX), mainly mortgages(1)+27.8% y/y (+35.1% at current FX) • Mutual Funds(2) +35.6% y/y • STRONG VOLUME GROWTH +4.8% (+13.5% at current FX) 1,835 1,751 • Total Revenues(Euro mln) 2003 2004 • Mutual Funds: PPIM(3) +4.1 pp y/y to 34.5% • Stock of mortgages: Pekao(4) +4.5 pp y/y to 16.5%, Zabaholds its leadership position (40.2%) • MARKET SHARE GAINS • IMPROVED EFFICIENCY • Cost/Income -0.8 pp y/y to 55.2% • Cost of risk -33 bp y/y to 89 bp • Coverage ratio of doubtful loans +6.7 pp to 70.8% • BETTER ASSET QUALITY (1) Management accounts in LAS (4) Only Local Currency (2) New Europe Business Area of Pioneer is included at current FX (3) Pioneer Pekao Investment Management

  20. GLOBAL BANKING SERVICES DIVISION OBJECTIVES MAIN ACTIONS • Right size Group headcount • Optimize processes and service model • Rationalize corporate structure and Real Estate • Foster synergies in ICT • Create a central operations center in Romania • EFFECTIVE GROUP-WIDE COST MANAGEMENT • BECOME BEST-IN-CLASS SERVICE PROVIDER

  21. ACHIEVEMENTS SO FAR • UPA: first steps in Romania (35 people hired in 1Q05 in training process) • ICT synergies (approx. Euro 10 mln cost savings from in-sourcing in 2005) • Real estate rationalization (sale of non-core assets in 2004, 128 UCB branches to be closed in 2005) • Legal entities reduction (C. R. Carpi and Banca dell’Umbria to be merged into UCI banks in 2005) ITALY 39,858 39,368 39,131 • Headcount reduction (-727 vs 1H04) well on track Feb05 1H04 2004

  22. 2005 - MAINTAIN TIGHT FOCUS ON ACHIEVING 3-YEAR PLAN TARGETS • Building on 2004 achievements: • Gain market share in lending and financial assets to drive revenue growth: • Increase lending volume in mortgages, consumer credit, small business in Italy and New Europe • Raise corporate share of wallet while enhancing service revenue contribution • Leverage global presence of AM division to increase AuMs • Cross-sell asset-gathering products to existing small business customers • Deliverefficiency improvement in line with 3-year plan • Maintain strict control over cost of risk • Drive value creation and shareholder return through active capital management

  23. UNICREDITO ITALIANO GROUPBuilt to deliver Alessandro Profumo - CEO Morgan Stanley European Banks Conference London - April 6th,2005

  24. Annex

  25. CUSTOMER SATISFACTION PRIVATE CUSTOMERS, TRIM INDEX (1) SMALL BUSINESS, TRIM INDEX (1) UNICREDIT BANCA AVG. TOP 4 COMPETITORS UNICREDIT BANCA AVG. TOP 4 COMPETITORS 51 48 47 43 42 41 40 36 2003 4Q04 2003 4Q04 2003 4Q04 2003 4Q04 • Stability of front-end relationship with customers • Dedicated service model • Improved waiting time (shorter queues) • Improved advisory on lending products • Improved advisory on investment services, with room for further improvement • Focus on quality of sales Source: NFO Infratest, Customer satisfaction analyses (1) On a scale from 0 to 70

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