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Group 2005-2008 Plan. Merrill Lynch Banking & Insurance Conference 2006 London, 4-5 October 2006. AGENDA. The first truly European bank. Group 2005-2008 plan. Overview of 1H06 results. Conclusions. A STRONG PRESENCE IN EUROPEAN BANKING. UNIQUELY, RESOLUTELY EUROPEAN

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Group 2005-2008 Plan


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    1. Group 2005-2008 Plan • Merrill Lynch Banking & Insurance Conference 2006 • London, 4-5 October 2006

    2. AGENDA The first truly European bank Group 2005-2008 plan Overview of 1H06 results Conclusions

    3. A STRONG PRESENCE IN EUROPEAN BANKING UNIQUELY, RESOLUTELY EUROPEAN • Banking operations in 20 countries • More than 28 million customers • Over 7,000 branches STRONG MARKET POSITIONING • #2 in Italy with 10% market share(1) • #2 in Germany with 5% market share(1) • #1 in Austria with 18% market share(1) • Leader in fast growing CEE markets much larger than closest competitor • HIGH GROWTH POTENTIAL • Significant opportunities in the local networks as well as in the global businesses Source: UniCredit, 2005 data, pro-forma excl- Splitska, Uniriscossioni (1) Ranking measured in terms of total assets. For market share calculations UniCredit and HVB may apply different definitions as far as the underlying data is concerned. Market share and ranking in Italy refer to customer loans.

    4. A DIVERSIFIED BUSINESS PORTFOLIO ACROSS DIFFERENT GEOGRAPHIES… 2005 Consolidated Total Revenues: 21,140(1)(2) mln Private & AM CEE & Poland Markets 10% Corporate 20% Italy Markets and Investment Banking 23% 42% 13% Austria 13% CEE & Poland Markets Retail 20% 34% Germany 25% COMMERCIAL BANKING STILL THE BULK OF OUR BUSINESS MORE THAN 50% OUTSIDE ITALY (1)Figures restated, to sterilize perimeter changes (2) The pie charts are on revenues ex GBS, Holding, corporate centre and elisions

    5. …WITH A POWERFUL COMBINATION OF PRODUCTION AND DISTRIBUTION CAPABILITIES A MASSIVE DISTRIBUTION NETWORK WITH UNMATCHED POTENTIAL TO GROW FURTHER STRONG COMPETENCES IN GLOBAL PRODUCTS/SERVICES • Specialized service models to serve different customer segments • Pioneer, our global asset manager, with 280 bn AUM(1) • Significant opportunity to exchange best practices among countries • Markets and Investment Banking: a European regional specialist focusing on selective product segments • Over 3,600 retail branches across Italy, Germany and Austria • 3rd European player for # of plastic cards, with a strong competence center in Turkey • ~ 350,000 Corporate customers served in Italy, Germany, Austria and over 100,000 Cross Border Client Groups • Leasing, 2nd European player(2), with ~170 bn loans and ~530 mln revenues • European leader in on-shore Private Banking with top 3 position in Germany, Italy and Austria • CEE: ~3,000 branch network across 17 countries, about2X next competitor • Global Financial Services: a new global factory with ~900 mln revenues UNIQUE OPPORTUNITY TO LEVERAGE ON A EUROPEAN SCALE THE STRENGTH OF OUR PRODUCT FACTORIES (1) Data as at 31.08.06, including assets under administration (2) As for 2005 new business

    6. § CFO § Legal dept. § CRO § Corporate Identity § Strategic HR Private Global Banking Markets & CEE/ Banking & Retail Investment Corporate Services Poland Markets AM Banking FULL AND EFFECTIVE DIVISIONALIZATION SETS US APART AND DRIVES THE INTEGRATION PROCESS DIVISIONALIZATION DONE IN GERMANY AND MOSTLY DONE IN AUSTRIA • Retail & Corporate: Small Business served in Retail Division; launch of Clarima business in Germany; global leasing operations established • Reorganisation of Asset Management on a single platform under Pioneer; creation of a Private Banking division in HVB • Global structure in place in Markets and Investment Banking • CEE & Poland Markets: ongoing in-country mergers mostly completed by 2007 • Concentration of IT, Procurement, B/O and Real Estate functions in new GBS divisions in HVB and BA-CA; centralized procurement process in place for Italy, Germany and Austria

    7. UCI Italian Banks HVB BA-CA Pekao Asset Mgmt. (PGAM) Investment Bank(1) BA Bank(2) UCI IB (UBM) UCI CEE HVB AM HVB IB BA-CA CEE BA-CA AM BA-CA IB HVB CEE ONGOING REORGANISATION OF GROUP LEGAL ENTITIES: KEY STEPS ALREADY TAKEN TOWARDS THE TARGET STRUCTURE Current Group Structure Target Structure UCI Italian Banks HVB UCI CEE(incl. Pekao) UCI IB (UBM) UCI AM (PGAM) BA-CA HVB CEE BA-CA CEE (Incl. BPH) HVB IB BA-CA IB HVB AM BA-CA AM • Transfer of BPH to UniCredit • Contribution in kind of UniCredit holdings in CEE banks (excl. Poland) to BA-CA • Transfer of BA-CA under UniCredit • Rationalisation of HVB holdings in CEE banks • Integration of Asset Management into Pioneer: sale of Activest to Pioneer (1) In the long term UniCredit will gain full ownership (2) Newco including all the commercial banking activities in Austria; in accordance with ReBoRA signed last March, to be realised not before March 2011

    8. AGENDA The first truly European bank Group 2005-2008 plan Overview of 1H06 results Conclusions

    9. Increase RWA profitability and optimize capital allocation • Leverage Global product lines and services • Finalize corporate structure GROUP STRATEGIC PRIORITIES • Restore profitability in Germany (ROE(1) to ~17% in 2008), ready for growth options • Maintain positive momentum in Italy • Complete restructuring and continue investing in CEE STRONG EVA CREATION >3x in 2005-2008 (1) Calculated on allocated capital ex goodwill

    10. SOLID PROFITABILITY OUTLOOK FOR UNICREDIT THANKS TO CYCLICAL AND STRUCTURAL FACTORS GER IT AT EU CEE(1) GDP avg. annual % growth 0.8 0.4 1.9 1.4 6.1 2003-2005 2006-2008 1.7 1.4 2.4 1.9 5.6 • EUROZONE MACROECONOMIC CYCLE driven by UniCredit countries of presence with Germany in particular contributing strongly to the 06-08 regional GDP growth • CEEGDP GROWTH well above 5% 06-08 CAGR, 3x faster than Eurozone • HOUSEHOLDS SEGMENT: • significant lending volume growth, especially in Italy and CEE where mortgages and consumer credit remain the main growth drivers • interest spread to benefit from a restrictive monetary stance • benign development of household financial assets also thanks to a moderately positive market effect • CORPORATE SEGMENT: sound growth environment across all regions thanks to cyclical recovery; Germany and Italy seen accelerating in 1H06 Source: Bank of Italy, Bundesbank and OeNB data; UniCredit forecasts (1) CEE includes Poland, Turkey, Croatia, Russia, Bulgaria, Czech Republic, Hungary, Romania, Slovakia, Bosnia-Herzegovina, Slovenia, Serbia-Montenegro, Ukraine, Macedonia and the Baltics

    11. GROUP TARGETS: STRONG EPS GROWTH SUPPORTED BY ENHANCED PROFITABILITY OF ASSETS AND COST CONTROL 2008 2005(1) CAGR 05-08 2005(1) 5.2 ~5.7 Revenues/Avg. RWA, % 21.1 ~8% Revenues (bn) 60.7 ~52 Cost/Income, % -12.8 ~3% Operating Costs (bn) 61 STABLE Cost of risk(2), bp 0.32 ~27% EPS 5.53 ~6.8 Core Tier 1 ratio, % 10.2 ~17(3) 1.2 ~49% ROE, % EVA (bn) ~133,740 ~126,900 FTE, # 416 ~5% RWA (bn) - staff rightsizing ~-11,850 - growth initiatives ~+5,000 • Plan assumes 0.56 Euro EPS for 2007… • … with steady growth of DPS during the plan timeframe • 6.8% Core TIER 1 ratio target achieved by 2008 (1) Figures restated, to sterilize perimeter changes (2) Loan Loss Provisions/Average Credit RWA for the year (3) Group ROE calculated on allocated capital ex. goodwill would be ~23%

    12. DISCIPLINED CAPITAL ALLOCATION AIMED AT VALUE CREATION 05-08 CAGR EVA ALLOCATED CAPITAL(3) Delta (mln) 3.9 bn(2) ~29.4 bn +4.7% ~25.5 bn 5.8 +18% ~870 +390 3.5 3.8 +4% 3.3 2.0 +13% ~990 +470 1.3 1.2 bn(2) ~480 10.6 +7% 8.8 ~820 +350 ~520 ~640 +380 4.9 5.7 +5% ~470 1.0 ~870 +980 0.7 -12% ~260 2.7 0.8 ~-110 -33% ~-70 +100 ~-170 2005 2008 2005 2008 MIB CEE Private B. & AM Corporate Retail Commercial RE Financing Corporate Centre(1) • Turnaround of retail business in Germany drives strong EVA growth • Significant contribution of all other businesses (1) Including GBS and other Group Companies not included in the different business divisions (3) Average (2) Difference between total and sum of the Divisions due to Corporate Centre

    13. SIGNIFICANT REVENUE GROWTH ACROSS DIVISIONS ENHANCES GROUP ASSET PROFITABILITY 05(1)-08 REVENUE CAGR, % MIB ~13 CEE & Poland Markets ~11 Private & AM ~10 Revenues/RWA from 5.2% to ~5.7% in 2008 GROUP ~8 Retail ~7 Corporate ~6 (1) 2005 figures restated, in order to sterilize perimeter changes

    14. STRICT CONTROL OF INDIRECT COSTS LEAVES ROOMS FOR INVESTMENTS IN HIGH GROWTH AREASCOST SYNERGIES CONFIRMED • Contained dynamic of operating costs (05-08 CAGR ~3% at Group level) despite significant business volumes growth, thanks to: • Indirect costs(1)(~30% of total cost base) down from 3,830 bn in 2005 to 3,690 bn in 2008, thanks to centralization of activities and effective cost management • Rationalization and streamlining of the Group corporate centre • FTE reduction of ~6,850 units • ~-11,850 staff rightsizing • ~+5,000 new hirings in fast growing areas • Cost synergies confirmed(2) at 900 mln • Total integration costs to 1.25 bn, slightly lower than originally planned (1) Mainly IT, Back Offices and Real Estate & Facility Management (2) Disclosed on June 13th 2005 in UniCredit-HVB offer presentation

    15. Rationalisation Process key highlights • 20.5 bn low value generating performing portfolio with limited cross selling potential • Dedicated team to run the whole winding down process • Commercial Divisions totally focused on growing core strategic business RATIONALIZATION OF NON-STRATEGIC ASSETS, ESPECIALLY IN GERMANY, TO CREATE ADDITIONAL VALUE Total non-strategic assets: ~30 bn gross loans(1) RER 9.5 bn Performing non strategic mortgages 20.5 bn Inertial vs “accelerated” reduction path (loans, bn) – for illustrative purposes ~30 2005 vs 5.2% avg. for the whole UniCredit Group Revenues/Avg. RWA, % ~1.6% 2005 2006 2007 2008 2020 (1) Data as of Dec.05

    16. FULL TURNAROUND OF PROFITABILITY IN GERMANY OVER THE PLAN PERIOD • ~9% revenue CAGR 05-08 thanks to efforts to boost commercial activity and productivity: • enhance sales productivity in Retail • boost asset gathering recurring fees in the affluent segment • leverage on cross fertilisation potential in Investment banking • Strict cost control: flat operating expenses • Staff right-sizing • Containment of indirect costs (31% of total costs in 2005) • Asset rationalisation: ~-1% RWA 05-08 CAGR REVENUES/RWA, % ~4.9 3.6 2005 2008 ROE(1), % ~17 ~6 2005 2008 The numbers are based on the current structure of HVB Group Data related to HVB Group ex BA-CA Group (1) Calculated on allocated capital ex goodwill

    17. AGENDA The first truly European bank Group 2005-2008 plan Overview of 1H06 results Conclusions

    18. 1H06 NET PROFIT GROWTH OF ~+1 BN Y/YSTRONG IMPROVEMENT, +32% Y/Y, NET OF THE CAPITAL GAIN FROM THE DISPOSAL OF SPLITSKA BANKA % ch. on 1H05 at constant FX & perimeter Ch. on FY05 % ch. on 1H05 1H06 1H06 mln Total Revenues Cost of Risk(1), bp +15.7% 11,939 +11.8% 56 bp -4 bp Core Tier 1 ratio, % Operating costs 5.94% +41 bp -6,529 +4.5% +1.0% Operating Income 5,410 +28.2% +32.9% • COST OF RISK decreasing in both UCI and HVB sub-groups Integration costs -52 n.m. n.m. • Core Tier 1 ratio increased by 41 bp thanks to organic capital generation (~20 bp) and sale of Splitska Banka (~21 bp); disposals of 2S Banca to be finalized by year-end 2006 Net Income(2) 3,043 +43.6% +48.3% C/I Ratio, % -5.8 pp 54.7% -5.8 pp P&L figures in IFRS according to Bank of Italy rules (2)Consolidated gain from Splitska Banka disposal of +367 mln; +332 mln net of minorities impact (1) Profit (loss) and net write downs on loans / Total Period Average RWAs for Credit Risks; 1H06 figure annualized

    19. AGENDA The first truly European bank Group 2005-2008 plan Overview of 1H06 results Conclusions

    20. MORE EFFICIENT CORPORATE STRUCTURE IN PLACE (INCLUDING IN-COUNTRY MERGERS IN CEE) • CENTRALIZED PRODUCT FACTORIES FULLY LEVERAGED • GROUP RUNNING AT FULL SPEED, WITH STRONG CAPITAL AND CASH FLOW GENERATION UNICREDIT IN 2008