UniCredit Group

Delivering growth in a riskier world

Merrill Lynch Banking and Insurance CEO ConferenceLondon, 3rd October 2007

Alessandro ProfumoChief Executive Officer

2

"IN THE SPOT" TODAY

UNICREDIT POSITIONING AND STRATEGY SUPPORT VALUE CREATION ALSO IN THE CHANGED MARKET SCENARIO

UNICREDIT OPPORTUNITIES

DIVERSIFICATION BY BUSINESS AND GEOGRAPHY All Divisions below 1/3 contribution to operating profit

Italy 47% of consolidated revenues, Germany & Austria 27%, CEE 18%, other regions 8%

WIDE EUROPEAN FRANCHISE Banking operations in 23 countries(1) in four core markets

More than ~40 million customers, ~9,500 branches

GROWTH & RESTRUCTURING Clear growth pattern in CEE Region

Solid revenue base in Italy, with significant potential from Capitalia integration

Germany and Austria with further restructuring potential

LIQUIDITY Well balanced asset & liability structure

Sound liquidity position thanks to active management

CREDIT MARKETS

Negligible Exposure To Us Sub-Prime & Conduits

High quality LBO portfolios, with no material credit defaults or loan losses

Diversified UCI MIB revenue sources, mitigating financial turmoil impacts

(1) Including ATF

3

AGENDA

Liquidity

“In the spot today”

Credit market

Growth opportunities

4

WELL BALANCED CONSOLIDATED ASSET & LIABILITY STRUCTURE

(1) Medium-long term funding, 139 mln (above 1 year - capital instruments and funds not included) / Medium to long term commercial Banking book assets (254 mln)

(2) Ex Bank of Italy structural liquidity Rule 2 aimed to ensure a structural equilibrium between assets and liabilities by a specific weighting system

30 June 2007

BANKING BOOK

303

218

708 bn

254

339

25139

48618 bn

32

130

26224

Total Liabilities 869 bn

Total Assets 869 bn

OtherOther

Trading assets

Fixed assets

M/L term assets

S/T assets

Trading liabilities

M/L term liabilities

Due to customers

S/T liabilities

Regulatory Capital

Customer Loans (454 bn)

Customer Deposits (303 bn) = 150%

Financial Equilibrium ratio(1): from 15.3% in 2003 to 56.4% as of June 07

Former Bank of Italy Rule 2(2) +31.9 bn

Strong discipline provided by internal rule:

Liquidity ratio limit above 0.90

5

CLEAR FUNDING AND LIQUIDITY MANAGEMENT BASED ON THREE SOLID PILLARS

Maintaining eligible and marketable collateral

>56 bn of collateral available within 1 month

Increasing access to secured funding with new asset classes

200 mln of new collateral through the Italian “ABACO” initiative, rising to 2.2 bn by YE

Projects in place to monetise existing assets through ECB and other Central Bank facilities

Diversification of geography and instruments for both S/T and M/L termDepos, CD’s, CP, Private Placements, Pfandbriefe, Retail

Leveraging on the historical funding reach of HVB & BA-CA

Centralised co-ordination of pricingMinimise cost of funds

Avoid internal competition

Extensive sharing of liquidity between all regional liquidity centres … cash pooling

Trading with Market Place, UCI’s digitalized trading and accounting platform

Active since March 07, live in all Italian entities, HVB, BA-CA, Pekao, Capitalia

Third party funding needs reduced by a further 3.2 bn in 2007

CASH POOLING

FUNDING DIVERSIFICATION

COLLATERALISATION

6

UNICREDIT STRONG LIQUIDITY POSITION NOT AFFECTED BY AUGUST AND SEPTEMBER MARKET CRISIS

UniCredit Group 1 month available liquidity(1)

(1) Calculated as: (sum of net liquidity inflows in the timeframe) + (securities eligible for discount to the ECB, marketable repoable securities)

2 Apr 16 Apr 30 Apr 14 May 28 May 11 Jun 25 Jun 9 Jul 23 Jul 6 Aug 20 Aug 3 Sep 24 Sep

Strong increase of intra-group liquidity flows in August (+61.2% m/m), reducing need to access the market

Money Market prices in the Internal liquidity market always below Euribor

60

100

140

Indexfigure

Sound and comfortable positive liquidity gap, even after August 07 crisis

7

AGENDA

Liquidity

“In the spot today”

Credit market

Growth opportunities

8

Euro mlnTotal

Unicredit Group

On balance

US sub-prime RMBS 127

CDO with partial sub-prime 139

of which equity tranches/income notes 11

Retained interest 11

Total on balance 277

Off balance 77

Total 354

Exposure to US sub-primes:

RMBS collateralized by US sub-prime mortgages (mainly vintage, 2002-2003), still AAA rated

CDO with sub-prime collateral: 90% still investment grade, 70% AA or better at the end of August

Retained interest held by Pioneer

NEGLIGIBLE EXPOSURE TO US SUB-PRIME…

RMBS: Residential Mortgage Backed SecuritiesCDO: Collateralized Debt Obligations(1) Off balance items include conduits with sub-prime exposure and investments in SIVs(2) On Unicredit reported total regulatory capital as of June 07

(1)

Exposure equivalent to 0.8% total regulatory capital(2)

9

8.5

6.2 5.8

14.3

July 07 Aug 07 5 Sep 07 26 Sep 07 Feb 08E

… AND TO CONDUIT BUSINESS

Euro bn

HVB sponsored conduits

Size as of 26 Sep-07

Type of Conduit

Liquidity line

HVB Liquidity line

Letter of Credit

Arabella 1.8 Customer Yes 1.77 0.18

Salome 1.3 Customer Yes 1.31 0.69

Black Forest* 0.7 Customer Yes 0.63 0.30

Maximillian* 0.3 Arbitrage Yes 0.30 0.01

BUFCO* 1.1 Arbitrage Yes 1.08 0.12

Subtotal 5.2 5.09 1.30

Bavarian TRR* 5.8 TRR No - -

Total 11.0 5.09 1.30

* US $ denominated; €/$: 1.4124

Very quick response to market turmoil by reducing Bavaria TRR assets from 14 to 5.8 Euro bn

Bavaria TRR exposure, Euro bn

Extremely low exposure to 3rd parties conduits: total liquidity lines provided by HVB/BA-CA ~0.55 bn

0(1)

(1) Total Rate of Return Conduit

10

HIGH QUALITY LEVERAGE BUY-OUT BUSINESS

Europe

95%

Europe

95%

UNDERWRITING PORTFOLIO

HOLD PORTFOLIO

Europe

83%

Europe

83%

USA: 5%

USA: 12%

Asia: 5%

~5.0 eur bn, 12 deals

all strong credit stories

1 jumbo LBO (Alliance Boots, 2 eur bn exposure), high quality credit story performing very well

~5.5 eur bn, 160 deals

95% senior

Well performing, highly diversified

Two high quality LBO portfolios, mainly European deals; no credit concerns

11

MARKETS AND INVESTMENT BANKING DIVISION: A WELL BALANCED BUSINESS PORTFOLIO

BREAKDOWN OF 2006 OPERATING REVENUES

REVENUES BY BUSINESS LINES 2006(total return view)

Equities 20%

FICC(1) 30%

Origination & Advisory 39%

Structured Credit 12%

Financing 61%

Structured Derivatives 38%

InvestmentBanking

32%

Markets68%

(1) Fixed Income, Currencies, Commodities

Strong diversification of revenue sources mitigating the impact of the credit market turmoil

12

AGENDA

Liquidity

“In the spot today”

Credit market

Growth opportunities

13

RETAIL: a successful service model and a well-rooted presence in the core countries

NOTE: Year-end 2006 data, referred to UniCredit + Capitalia + ATF +USB Groups (combined pro-forma, before Corporate Center and elisions) Source: UniCredit, Capitalia, ATF, USB 2006 data

OPERATING PROFIT BREAKDOWN

CORPORATE: a network leveraging on group wide product factories

BY DIVISION

CAPITALIA: additional opportunities from integration

MIB: a strong regional player with significant diversification

CEE: the leading franchise in a high-growth area

UNICREDIT BUSINESS PORTFOLIO: DIVERSIFICATION, GROWTH AND RESTRUCTURING OPPORTUNITIES

PB&AM 12%

CEE 20%

Retail 24%

MIB 17%

Corporate 27%

14

CEE: UNIQUE COMBINATION OF STRONG GROWTH POTENTIAL AND IMPROVING RISK PROFILE

Real GDP Growth (%)1

CEE-16 EU-12 ASIA LATAM

Avg. 07-09e

7.4

4.0

6.0

2.1

(2) Total loans/deposits include general gov.t, non-financial corporations, households and when available non-profit institutions serving households (NPISHs) and non-monetary financial institutions (Non-MFIs); CEE: new EU members, Croatia, Turkey, Bosnia, Serbia, Russia and Ukraine

(1) CEE-16: BiH, BG, HR, CZ, HU, EE, LV, LT, PL, RO, RU, SK, SI, SRB, TK, UA; Source EIU (economist intelligence unit) for Asia and Latam

(4) Calculated for CEE 10, including Poland, Czech Rep., Hungary, Slovakia, Slovenia, Croatia, Bulgaria, Romania, Turkey and Russia

Banking penetrations

(Loans+Deposits)/ GDP in 2006

EMU3

214%

CEE

77%2

Euro bnCagr

06-09

Loans 30%

Deposits 23%

AuM4 28%

Net Profits5 19%

(3) European Monetary Union

(5) Net Profits (Before Tax & Extr. Items) are calculated for CEE 16

Sources: Central Banks and UniCredit Group New Europe Research Network

(6) For May 2007 S&P rates - GDP as year end ‘06; For May 2004 S&P rates - GDP as year end ‘03

Stronger economic growth in CEE vs EU …

∆ avg. real GDP growth 07-09e ~4 pp vs. EU

… with improved risk profile country rating (weighted for

GDP6) > BBB- ~78% in May 2007(~+40 pp in the last 3 years)

Under penetrated banking sector

CEE 20%

High volume growth rates expected

15

UNICREDIT’S EXTENSIVE NETWORK DELIVERED EXCELLENT PERFORMANCE…

1H 071H 06

1,1431,424

+24.1%

UCI’s Operating profit in CEE Region, mln

44.7

13.5

10.0

8.5

5.9

5.5

4.9

4.4

2.5

UCI’s Operating profit, breakdown by country* (1H07)

63

70

78

84

121

142

192

637

35Slovakia

Hungary

Romania

Bulgaria

Czech R.

HR & BiH

Russia

Turkey

Poland's Markets

P&L figures at current FX, % change at constant FX Weight in % on total(*) Balance due to Serbia, Slovenia, Baltic Countries & Profit Center Vienna

+21.6

y/y % ch.

+27.2

+17.5

+52.3

+2.6

+29.4

+25.0

+12.6

+64.7

CEE 20%

Strong top line growth delivered across all countries, driven by volume expansion, careful pricing and high standard services to customers

Improved efficiency (C/I ratio to 48.2% -3.7 pp y/y) while delivering organic growth

16

In other countries of presence…

…selective organic growth

In high-growth markets with solid presence…

…aggressive organic growth

… WITH FURTHER OPPORTUNITIES LEVERAGING ON GROUP POSITIONING AND MARKET GROWTH POTENTIAL

CEE 20%

KEY ACTIONS

Increase product penetration leveraging on Group’s product factories

Optimize branch network after merger and integration activities

TURKEY

RUSSIA

ROMANIA

UKRAINE

KAZAKH.

Significant branch opening plan: ~900 new branches in 3 years

Increase Retail customer reach

HUNGARY

CZECH R.

SLOVAKIA SLOVENIA

SERBIA

BALTICS

Selective branch opening

Strengthen retail positioning

UNICREDIT STRATEGY

Where n°1…

…ride the market growth consolidating market shares

(1) Revenues CAGR 2006-2009 (local currency) weighted for UniCredit revenues in the considered countries in 1H07 – Kazakhstan not included

+11.4%

+20.9%

+11.3%

MARKET POTENTIAL1

CROATIA

BULGARIAPOLAND

BOSNIA H.

17

MIB: A LEADING REGIONAL PLAYER WITH A CLEAR DIVISIONAL MODEL OFFERING SIGNIFICANT GROWTH OPPORTUNITIES

MIB17%

Enhancing coverage, origination and advisory capabilitiesCOVERAGE

ORIGINATION & ADVISORY

Significant cross selling opportunities on the Group’s international platform

CROSS SELLING

Strong CEE network with optimal positioning in the most attractive markets

CEE POSITIONING

Key growth drivers:

Leverage on the ability to provide Group’s products to an enlarged client base in Austria/Germany, Italy and CEE

Group’s large lender position and strong CEE M&A advisory as a door-opener to clients in the core markets

Cross selling potential of the global platform: FX, structured derivatives, structured and project finance

Double digit growth rates in CEE with

Poland: +10% CAGR 2006-2011(1)

Russia: +15% CAGR 2006-2011(2)

(1) As for System’s Wholesale Banking revenues(2) As for System’s Investment Banking revenues

50% of CEE revenue pool

Divisionalisation in CEE allows to roll out the international product platform via the local network

Increase share of wallet of existing clients in Austria, Germany and Italy

18

RETAIL ITALY: FULLY IMPLEMENTED DIVISIONAL SERVICE MODEL SUPPORTING GROWTH

Accelerating the current successful growth

Cost/income target achieved one year ahead of plan

1H 07FY 06

6055

C/I, %

-5 p.p.

1H 071H 06

2,3632,542

+7.5%

Revenues, mln Customer base enlargement:

100,000 new customers in Jan-Sept 07

131,000 net flow of new C/A in Jan-Sept 07

Customer satisfaction: continuous improvement TRIM Index: UniCredit Banca 61 vs 51 of top 5 peers

Market share rising in key products/ segments:

Household mortgages (new production)

Consumer Financing (new production)

Small business short term loans

Strong productivity increases thanks to higher automation/online migration

Branch transactions -10% in 2006, but total bank transactions increased by 12%

1,600 deposit-ATM installed by July 07: 38% of cash deposits migrated

1.6 mln active online customers at June07 (+33% y/y)

FTE rightsizing

-369 FTE since Dec05 (to 22,796 in 1H07)(1)

(1) Excluding seasonal workers

RETAIL24%

19

Preliminary benchmarking fully supports announced cost and revenue synergies

CAPITALIA: STRONG OPPORTUNITIES IN BOTH REVENUES AND COSTS

Integration started at full speed:

(1) Referred to Personal Banking

(2) Index figures, UniCredit Banca=100. For Capitalia, Min and Max between Banca di Roma, Banco di Sicilia and BIPOP

PRODUCT PENETRATION

BRANCH SERVICE MODEL(2)

Alignment to UniCredit’s best practice

Increase productivity:

Externalization of back office

Wider utilization of direct channels

INTEGRATION

Agreement with Unions on rightsizing signed

New branches plan

First Retail joint initiatives (e.g. ATMs sharing) and product development

Common brand strategy defined and announced

UniCredit Banca

Capitalia

Current Accounts 89% 74%

Revolving Cards 11% 5%

Segregated Accounts 29% 13%

Daily transactions per FTE 100 49-71

Current accounts/Deposits per FTE 100 52-73

Direct channels transactions 100 61-77

(1)

(2)

(2)

RETAIL24%

(2)

20

Improvement of cross selling (i.e. 131,000 new “Willkommenskonto” in Germany from Jul-06 launch)

Focus on Affluent customers long term investments and Small Business entrepreneurs assets

Set up of UniCredit Consumer Financing Deutschland

Growth in Mortgage penetration in line with branch share in Austria

GERMANY AND AUSTRIA: PAVING THE WAY FOR FUTURE GROWTH RETAIL

24%

OPPORTUNITIES TO BOOST REVENUES

COST MANAGEMENT ACTIONS

FTE rightsizing

Network restructuring, through

business model revision and tight

direct costs management

Strong control on both direct and

indirect costs

1H 071H 06

711701

Operating expenses

-1.3%

1H 071H 06

538

470

-12.6%

Operating expenses

1H 07FY 05

91.976.9%

C/I, %-15 p.p.

1H 07FY 05

91.5%

73.6%

-17.9 p.p.

C/I, %

FY 06FY 05

1,5581,422

-8.7%

FY 06FY 05

1,147

978

-14.7%

21

Revenues, mln

CORPORATE27%

1H 071H 06

2,385

2,530+6.1%

C/I Ratio, %

1H 071H 06

33.3%31.5%

-175bp

Cost of risk, bp

1H 07FY 06

5348

-5 bp

CORPORATE: BUSINESS EXPANSION IN A SOUND ENVIROMENT

Improved quality of the loan portfolio

Strict cost control

Growth of corporate loans (+10.2% 1H07/1H06) and strong development of leasing (revenues at ~169 mln, +15% 1H07/1H06)

Increased cross selling of fee based products (derivatives, securities services) as main growth drivers (net fees at 409 mln, +15%)

Good increase of deposits (+9.8% 1H07/1H06)

22

OPPORTUNITIES ARISING FROM NETWORK STRENGTHENING AND LEVERAGE ON PRODUCT FACTORIES

LEASING:

N. 1 European Leasing Group(2) after integration with Capitalia Strong business momentum

GLOBAL FINANCIAL SERVICES: focus on cash management, trade finance and international payments, exploiting the wide Pan-European network

Aggressive expansion plan in selected regions: 5 new locations already opened

Stronger positioning (~14% mkt. share(1)) after merger with Capitalia in a market with an attractive outlook …

(1) As for total corporate customer loans

… particularly in very interesting target regions (Lombardy, Tuscany and Lazio)

PRODUCT FACTORIES

COMMERCIAL NETWORKS

(2) As for total new business, ~12 bn(3) As for outstanding loans

CORPORATE27%

Jan-Aug06

5.67.4+33.4%

Leasing – New Business, bn

Jan-Aug07

23

CAPITALIA: FURTHER RELEVANT RESTRUCTURING OPPORTUNITIES

Capitalia migration by end of 2008 to UniCredit’s EUROSIG(1)

Consolidation of Capitalia IT functions into UGIS(2)

Integration of back office functions, also leveraging on “near-shoring” in Romania

Consolidation of procurement activities, extensive use of e-auctions

Adoption of UniCredit divisional model with light regional HQs

Branch network rationalization in Italy and foreign countries

Creation of single product factories and alignment to best performers

Union agreement signed well ahead of plan

Estimated staff rightsizing: 5,000 people

STAFF COSTS

ITBACK OFFICECENTRAL FUNCTIONS

Clear cost synergies from rationalization and alignment to best practices

(1) The single IT platform for Commercial Banking

(2) UniCredit Group Information System

24

CONCLUSIONS

A VALUABLE SET OF STRATEGIC OPTIONS OFFERING BOTH

GROWTH AND RESTRUCTURING OPPORTUNITIES