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2005 GROUP RESULTS Alessandro Profumo - CEO
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2005 GROUP RESULTS Alessandro Profumo - CEO

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  1. 2005 GROUP RESULTS Alessandro Profumo - CEO Milan, March 22nd 2006

  2. AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes

  3. SOLID PRO-FORMA(1) RESULTS SUPPORTED BY THE GOOD Y/Y PERFORMANCES OF BOTH UCI GROUP AND HVB GROUP STANDALONE • Solid figures for the new Group, with pro-forma(1) net income at 3,383 mln (including pre-tax restructuring charges of 580 mln) • Normalized(2) net income at 3,808 mln, thanks to the good performance of the standalone Groups: • UCI standalone at 2,573(2) mln, +24.4% y/y(3) • HVB standalone at 1,162 mln(4), +137.3% y/y • Total revenues at 20,791 mln, with excellent growth in the main revenue lines • UCI standalone at 11,024 mln, +8.0% y/y(3) • HVB standalone at 9,697 mln, +8.2% y/y • Cost income at 62.3%, improving in both standalone Groups: • UCI standalone at 54.8% from 55.8% in 2004(3) • HVB standalone at 68.1% from 68.7% in 2004 • 2005 Core Tier 1 ratio at 5.52%, better than plan targets • Pro-forma(1) EPS at 0.33 Euro, Normalized(2) EPS 0.37 • Proposed DPS at 0.22 Euro (+7.3% y/y) for ordinary shares (3) IAS figures, 2004 excluding IAS 32 & 39 (1) Pro-forma P&L includes HVB Group standalone 12 month results and restructuring charges (4) Excluding restructuring charges and general allowance to loan loass provisions (2) Excluding restructuring charges

  4. 2005 GROUP PRO-FORMA NET INCOME AT 3,383 MLN GOOD CONTRIBUTION OF STANDALONE GROUPS IMPACTED BY INTEGRATION AND ONE-OFF CHARGES; PROPOSED DIVIDEND GROWING 7.3% Y/Y (mln) PURCHASE PRICE ALLOCATION AND ELISIONS OF WHICH UNICREDIT STNDALONE 2005 UCI GROUP STATED (1) OF WHICH HVB GROUP STNDALONE 2005 PRO FORMA(2) Total revenues 11,024 20,791 11,024 9,697 70 -6,045 -12,726 -6,045 -6,608 -73 Operating expenses 4,979 8,065 4,979 3,089 -3 Gross operating profit -177 -580 -177 -546 +143 Integration costs 4,068 5,603 4,068 1,299 +236 Pre-tax profit Consolidated net profit for UCI Group 2,470 3,383 2,455 642 +286 Normalised net profit for UCI Group(3) 3,808 2,573 1,162 +73 0.33 Pro-forma EPS, Euro 0.37 Normalised EPS(3), Euro 0.22 Proposed DPS, Euro (1) Including HVB Group standalone 2 month results, Integration effects and other one-off costs (2) Including HVB Group standalone 12 month results, Integration effects and other one-off costs (3) Excluding integration effects

  5. RESTRUCTURING COSTS AND ADJUSTMENTS: 580 MLN NET IN 2005 AS THE ANNOUNCED 1,350 MLN COULD NOT BE ENTIRELY BOOKED IN YEAR ONE Restructuring costs and adjustments(1): breakdown by Group Pre-tax and minorities (mln) • Restructuring costs after adjustments amount to 580 mln in 2005 P&L 870 • The announced 1,350 mln charges could not be fully booked in 2005, due to delays in Poland and to IAS P&L recognition rules 177 546 147 580 108 438 • 870 mln gross charges come mainly from: • 490 mln severance costs • 147 mln loan provisioning in HVB (77 mln) and BA-CA (70 mln) • 158 mln impairments (mainly IT) • 58 mln consultancies -290 HVB BA-CA One-off provisions UCI (stand – alone) Adjustments(2) TOTAL Restructuring costs: breakdown by typology (mln) Pre tax impact in FY05 • Purchase price adjustments, related to fair value valuations in the new group opening balance sheet, have 290 mln pre-tax positive effects. The main items whose P&L impact is offset are: • 147 mln loan provisioning • 40 mln investment impairments • 99 mln software impairments 490 Severance 147 Loan provisioning 158 Impairments 75 Others 870 TOTAL (gross of adj.) (1) In 2005 consolidated pro-forma P&L (2) The adjustments are related to items which do not impact the consolidated net profit as they were already accounted for in the new group opening balance sheet

  6. CREATION OF A BIG EUROPEAN PLAYER WITH CRITICAL MASS IN ALL KEY AREAS LOANS (bn) RWA AUM 271.7 418.6 426.6 266.1 246.2 157.0 172.4 114.7 160.5 112.8 75.2 35.5 o/w BACA o/w BACA o/w BACA GROUP UCI HVB GROUP UCI HVB GROUP UCI HVB DIRECT DEPOSITS BRANCHES EMPLOYEES 462.2 7,184 132,917(1) 4,880 284.1 71,470 61,447 178.1 2,304 33,001 106.1 1,570 o/w BACA o/w BACA o/w BACA GROUP UCI HVB GROUP UCI HVB GROUP UCI HVB (1) “Full time equivalent”, KFS and YKB employees consolidated pro-quota

  7. ALL SOLVENCY RATIOS WELL ABOVE 2005 PLAN TARGETS; 2006 CORE TIER 1 TARGET (6%) FULLY ACHIEVABLE • Total RWAs lower than planned mainly thanks to: 2005 Plan(1) Targets • Dynamic Capital Management: capital generating actions carried out by the New Group (e.g. Locat securitization, partial disposal of Munich Re holding, continued pruning of investment portfolio) 2005 TOTAL RWA (bn) 418.6 433.4 • Reduced real-estate collateralized credit exposure for HVB Group Core Capital (bn) 23.1 22.9 • Significantly reduced market risks for HVB due to the adoption of the advanced internal model Core Tier 1 ratio (%) 5.52% 5.30% • Core TIER 1 ratio well above Plan estimates, while adopting a prudent approach on deferred tax assets of 1.7 bn, not reflected in capital Tier 1 ratio (%) 6.89% 6.22% Total Capital ratio (%) 10.33% 10.11% • 6% Core TIER 1 ratio target as of year-end 2006 fully confirmed, thanks to: Marginal RARORAC (%)(3) 5.7% • organic earning generation ROE (stated, %) 15.6% • additional capital generating actions (e.g. disposal of Securities Service business, Splitska Banka) (1) Plan Targets based on M&A “Main” Case scenario – All share acquisitions with 100% acceptance levels (2) Already deducted from Core Capital (3) Calculated on pro-forma net income (HVB Group consolidated for 12 months)

  8. AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes

  9. UCI STANDALONE: QUALITY RESULTS WITH STRONG P&L AND VOLUME GROWTH • UCI standalone (excluding HVB and restructuring charges) net income at 2,573 mln, growing significantly +24.4% y/y • Operating income up 10.6% y/y, thanks to strong contribution by all divisions: • Retail +24.0% • Corporate & Investment Banking +4.1% (10.8% ex derivatives) • New Europe +19.4% • Private & AM +29.9% • Revenues up 8.0% y/y to 11,024 mln, thanks to the brilliant performance of net interest income (+10.6%) and net commissions (+12.0%) • Significant volume expansion: loans +14.4%, with good growth in all the divisions • Good improvement in cost income ratio, down 104 bp y/y to 54.8% and operating expenses up by only 2.3% y/y(1) • Further strengthening of Group market positioning especially in asset management (market share at 15.57%, +103 bp y/y) (1)At constant FX and perimeter; excluding non recurring items not related to the integration

  10. UCI STANDALONE 2005 KEY HIGHLIGHTS: DOUBLE DIGIT GROWTH IN OPERATING INCOME DRIVEN BY A SOLID REVENUE INCREASE y/y % ch.(1) % ch. on 4Q04(1) IAS mln FY05 4Q05 Total Revenues 11,024 +8.0% 2,794 +8.3% Operating Income 4,979 +10.6% 1,170 +2.9% Net Income 2,573 +24.4% 456 +8.8% C/I Ratio, % 54.8% -1.1 pp 58.1% +2.2 pp Ch. on FY04(1) FY05 Cost of Risk(2), bp 57 bp -7 bp ROE(3) 19.0% +3.3 pp EPS(4) (Euro) 0.41 +24.2% Figures without integration costs & HVB impact (1) 4Q04 & FY04 excluding IAS 32 & 39 (4) Calculated as the ratio between net Income of UCI standalone and the number of shares pre capital increase due to HVB deal (2) Net loan loss provisions / net customer loans at year end (3) Net Income of UCI standalone / period average net equity (excluding revaluation reserves, dividends related to the previous year and impacts of HVB acquisition

  11. NET INTEREST INCOME GOOD PERFORMANCE WITH ACCELERATION IN LAST QUARTER ALSO THANKS TO YAPI ACQUISITION NET INTEREST INCOME excl. Dividends (mln) Q/Q % ch. Y/Y % ch. 1,433 +4.2% 5,394 +10.6% 1,375 1,293 1,293 1,006 991 1,056 1,070 +1.3% 4,122 +8.0% Italy 363 +13.8% 287 302 319 1,272 +19.8% New Europe 1Q05 2Q05 3Q05 4Q05 FY05 • Comments on quarterly trend • Italy: growth mainly driven by spread effect, with volume effect substantially stable • Retail: good increase of deposit spread benefiting from market rates rise • Corporate: UBI benefiting from better deposit spread, while lending volume effect is negative • New Europe(1): +4.0% at unchanged FX excluding positive one-off effects accounted in 3Q05, with relevant volume growth (+7.1% at unchanged FX vs. Sep 05) (1) Excluding Yapi First Time Consolidation effects

  12. INCREASED LENDING VOLUMES IN ALL DIVISIONS AND GROWING MARKET SHARES TOTAL CUSTOMER LOANS (IAS, bn) UCI LENDING MARKET SHARES(2) IN ITALY % ch. vs SEP 05 +14.9% +5.0% DEC 04 SEP 05(3) DEC 05(3) 152.3 160.5 +5.4% 139.7 On total loans 10.83% 10.77% 10.59% 60.0 62.6 +4.3% On M/L term loans 11.05% 10.85% 10.81% 54.6 Retail • Excluding 4.7 bn securitisation, market shares would be: • 10.94% (+11 bp on Dec 04) on total loans • 11.13% (+8 bp on Dec 04) on M/L term loans 70.6 71.8 +1.8% Corporate & IB 65.7 +9.1% New Europe +21.8% 17.1 20.9 14.4 +12.8% 5.0 4.6 5.2 Other DEC 04(1) SEP 05 DEC 05 • Retail: loan growth (+14.5% y/y) driven by mortgages, consumer credit and small business • Corporate: up 9.3% y/y with good contribution of m/l term (+10.7%(2) vs Dec 04) • New Europe:+23.2% y/y at unchanged FX excluding Yapi, with good growth in all banks (i.e. Pekao +10.2%, Zaba +21.8%) (1) Data as of January, 1st 2005, including IAS 32-39 application (2) Source: Bank of Italy Matrix (Total Loans net of NPLs and Repos) (3) Including the effects of 4.7 bn securitisation (UCB mortgages + Locat short term loans) Excluding Yapi Kredi

  13. +11.3% NET COMMISSIONS ACCELERATING QUARTER BY QUARTER TO REACH THE HIGHEST EVER RESULT IN UNICREDIT HISTORY IN 4Q05 NET COMMISSIONS (mln) Q/Q % ch. Y/Y % ch. 4,373 +12% +2.1% 1,163 +4.4% 1,113 1,071 1,026 +0.8% +10.9% Excl. one-off on tax collection(1) in 3Q05 Other +3.4% +9.7% +14.0% +25.6% +18.6% New Europe 202 654 161 143 148 1Q05 2Q05 3Q05 4Q05 FY05 • 4Q05 net commissions increase by 50 mln q/q, +4.4% vis-à-vis outstanding 3Q05 results (+6.7% excluding one-off(1)), mainly thanks to fees on investment banking(2,3) (+18 mln), on foreign-trade & transaction services(3) (+6 mln) and onasset management products(4)(+15 mln to 453 mln in 4Q05) • FY05/FY04 growth key drivers: • Fees on asset management products: +18.7%(4)(+262 mln to 1,661 mln, o/w +20 mln performance fees, growing by 56% y/y thanks to buoyant market conditions) • Corporate Division(3): foreign-trade (+17 mln), investment banking(2) (+68 mln) and transaction services (+6 mln) (1) 23 mln one-off tax collection fees accounted in 3Q05 but related to 1H05 Excluding Yapi Kredi (4) Net commissions on segregated accounts and on management of collective investment funds (2) Corporate finance + Equity capital market + Debt capital market (3) Managerial accounts in ITAS

  14. STRONG GROWTH OF GROUP AUM THANKS TO POSITIVE MARKET DEVELOPMENT AND REMARKABLE SALES PERFORMANCE ACROSS ALL REGIONS • A clear growth story based on Pioneer global presence: +29 bn AUM in 12 months, of which 14 bn in the international business units(1,2)(+37% y/y) UCI TOTAL AUM (bn) % ch. vs Sep05 +22.6% 152(2) 157(2) +3.1% • Strong contribution from UPB and Xelion: 2.6 bnnet sales of asset management products in 2005 (+106% vs 2004) 128 50 52 +3.3% International(1,2) 38 • UCI is undisputed leader of the Italian market inmutual funds’ net sales: 5,546 mln out of 8,439 mln for the entire system as at end 05… 102 105 +3.1% Italy 90 • … leading to continued gains in market share and # 2 ranking SEP 05 DEC 05 DEC 04 DEC 04 DEC 05 FEB 06 UCI mkt. share(3) 14.54% 15.57% 15.74% • Solid and consistent performance versus competitors in the worldwide ranking : Pioneer funds rank in the 35th percentile on a 1-year basisand in the 29th percentile on a 3-year basis • Further improvement in asset mix with positive impact on average pricing (1)US + New Europe + International (ex Italy) (2) Including 4.3bn AuM of AmSouth acquired on September 26, 2005; Total AuM growth excluding AmSouth assets is +19.3% vs. Dec04 (3)Calculated according to the “new” classification methodology adopted by Assogestioni since January 2005

  15. 4Q “CORE” INCOME FROM FINANCIAL TRANSACTIONS PRETTY IN LINE WITH THE PREVIOUS QUARTER INCOME FROM FINANCIAL TRANSACTIONS (mln) Y/Y % ch.(1) of which 74 mln one-off from conversion of Convertendo FIAT TOTAL (excl. Exchangeable Ass. Generali effect) 956 -2.2% 296 253 Q/Q % ch. 225 182 -28.1% +1.7% Net of Convertendo FIAT effect 632 -8.8% 188 Of which:Derivatives (Corporate + Institutional + Retail) 159 148 137 1Q05 2Q05 3Q05 4Q05 FY05 -86 -114 Exchangeable Ass. Generali effect: +6 -8 -26 • 4Q “core performance(2)” pretty in line with 3Q05 (182 mln vs 179), with higher contribution of derivatives (148 mln vs 137 mln) • 4Q/3Q stated trend affected by significant fair value adjustments and a single one-off exceptional gain posted in 3Q05: • Negative mark-to-market of call option embedded in the Generali Exchangeable Note (-86 mln in 4Q05 vs -26 mln in 3Q05)(3) • 74 mln one-off gain coming from conversion of Convertendo FIAT in 3Q (1) FY05 vs FY04 comparison barely significant as FY04 data are calculated excluding IAS 39 effects (3) Gains on the underlying security Ass. Generali are directly booked against equity, as Generali is included among AFS holdings (2) Obtained adjusting both 4Q and 3Q05 for significant fair value adjustments and 3Q05 for the one-off gain coming from conversion of Convertendo FIAT; further details available in the slide

  16. OPERATING COSTS: +2.3% Y/Y NET OF FX EFFECTS, CHANGES IN PERIMETER AND ONE-OFFS 4Q05 OPERATING COSTS(1) FY05 OPERATING COSTS(1) mln mln Current FX, mln Current FX Constant FX, mln exc. one-offs& perimeter changes Constant FX exc. one-offs& perimeter changes +6.0% +8.5% +2.3% +3.7% 6,045 1,624 468 5,804 1,520 5,701 1,497 5,673 1,466 2,092 448 138 466 Depr. & amortisation 462 2,018 128 Depr. & amortisation 113 550 1,992 109 1,982 511 528 517 Other admin. expenses Other admin. expenses 3,720 3,573 3,473 940 900 996 Personnel costs 916 3,459 Personnel costs Recovery of costs -60 Recovery of costs -60 -60 -60 -230 -235 -230 -235 3Q05 4Q05 3Q05 4Q05 2004 2005 2004 2005 • Negative impact of changes in perimeter (86 mln mainly due to Yapi Kredi) and of a one-off step up of VAP(2) related charges to P&L (40 mln) • Negative impact of first time consolidations (+54 mln vs 3Q05 ) and one-offs (10 mln staff costs(3)) • Operating costs (at constant FX and ex perimeter changes) rose by 3.7% qoq, due to: • Operating costs (at constant FX and ex perimeter changes) rose by 2.3% yoy, due to: • STAFF EXPENSES: up 4.5% qoq (+3.8% qoq ex CEE), driven by higher variable compensation (to reflect the good delivery on budget targets) and by CEE • OTHER ADMINISTRATIVE EXPENSES(1)strictly under control decreasing by –1.2% qoq • DEPRECIATION:up 18% qoq due to seasonal factors (yoy: +3.4%) • STAFF EXPENSES: +3.3% (+2.0% ex CEE), driven by, Italian labour contract, higher variable compensation, CEE; • STAFF (ex new consolidations): down by -658 units (-1,070 in Italy) • OTHER ADMINISTRATIVE EXPENSES(1) up +1.8%, i.e. +31 mln o/w only 12 mln from ordinary expenses • DEPRECIATION: down by 3.1% yoy (1) Net of recovered expenses (classified in the Bank of Italy scheme in item 220 of P&L) (3) Due to a one-off contribution to the employees and their health insurance fund (2) VAP is the productivity bonus envisaged by the Italian labour contract, paid cash in 2005 rather than in shares as in the previous year

  17. GBS DIVISION: 2005 KEY ACHIEVEMENTS GBS DIVISION ITAS figures -1,554 ITALY -1,064(1) Staff Efficiency • Headcount reduction: 1,554 vs June 2004 (launch of GBS staff rightsizing project) and 1,064 on Dec04 39,858 39,368 38,304 Jun04 Dec04 2005A Cost Management • Review of most relevant Group Policies (e.g. Phone, Travel, Convention and Office Equipment) • Completion of several centralization activities (e.g. Retail Banking CRM, Pioneer SGR systems, UniCredit personnel administration procedures) • Approximately 100 people in-sourced to USI ICT Synergies Process Excellence • Redesign and optimization of end-to-end cross-processes (domestic and foreign payments) Space Rationalization • Space optimization program: “city action plans” for the major Italian cities completed (benefits for the Group: 42mln by 2007) • Kick off of new Global Sourcing Model (competence centers based model with global negotiators) • Consolidation of on-line purchasing in Italy through I-Faber (negotiated volumes from 180 to 320 mln) Procurement optimization • Kick off of UPA Romania completed as planned: 237 resources hired (105 operative and 132 in training process) Off-shoring • Tableau de Bord, to measure service quality in terms of time and errors • Internal Customer Satisfaction (understanding of the internal client satisfaction level) Quality monitoring (1) -1,070 in IAS

  18. LIMITED Y/Y GROWTH OF NET LOAN LOSS PROVISIONS;4Q/3Q TREND AFFECTED BY EXTRAORDINARY RECOVERIES ACCOUNTED IN 3Q IN CORPORATE BANKING AND NEW EUROPE PROFIT (LOSS) & NET WRITE-DOWNS ON LOANS(mln) COST OF RISK(1) (bp) Y/Y % ch. 64 910 +2.5% 314 • Reduction mainly driven by Corporate and New Europe divisions, which in 2005 benefited also from extraordinary recoveries (~60 bp net of these recoveries) 57 237 190 169 -7 bp 2004 2005 1Q05 4Q05 2Q05 3Q05 FY05 Breakdown by division • Retail: higher provisions in 4Q (+104 mln vs 3Q) mainly arising from: • shift of doubtful loans to NPLs with consequent aligning of coverage ratios • write-off of loans detected during recognition of Past-due(2) (mln) 3Q05 4Q05 71 175 Retail 106 118 • Corporate & IB: 118 mln in 4Q vs 106 in 3Q which benefited from an extraordinary recovery on a large name Corporate & IB 1 41 New Europe • New Europe: 41 mln in 4Q vs 1 mln in 3Q which benefited from one-off write-backs in ZABA; 4Q penalised also by first-time consolidation of Yapi (13 mln) -9 -20 Others & elisions TOTAL 169 314 (1) Profit (loss) and net write downs on loans / Net customer loans as of 31.12 (2) Past Due Loans: Loans to customers for which there are delays on re-payments (of interests and capital) higher than 180 days

  19. ASSET QUALITY: LIMITED GROWTH OF NPLs AND DOUBTFUL LOANS; REDUCED WEIGHT OF BAD & PROBLEM LOANS ON TOTAL LOAN PORTFOLIO TOTAL NET BAD & PROBLEM LOANS(mln) % ON TOTAL NET LOANS AND COVERAGE RATIOs(%) 5,275 Past Due(1) 69.0% +3.5% net of Past Due -3.7% 857 57.1% 56.9% 34.9% Coverage ratios 68.2% 4,268 31.6% -32.6% 419 337 Restructured (2) 2.79% 2.75% +1.0% -3.2% 1,781 Doubtful Loans 1,42% 1,763 1.38% 1.15% 1.11% % on tot. net loans +2.3% +0.3% 2,218 2,168 NPLs NPLs Doubtful Total (ex Past Due) Net of first time consolidation of Yapi Sep05 Dec05 Sep05 Dec05 • Very limited 4Q/3Q growth of net NPLs (+2.3% but 0.3% net of Yapi first-time consolidation) and of Doubtful Loans (+1.0% but -3.2% net of Yapi) • Reduction of weight of all main categories of bad & problem loans on total loan portfolio • Coverage ratio almost stable on Total Bad & Problem Loans (net of Past Due), significantly increased on NPLs • ~1.1 bn total provisions on performing loans, lower than Sep05 (approx. -170 mln) due to first time recognition of Past Due and consequent shift of part of the reserve previously created to cover the new category; 0.71% coverage ratio (1) Introduced for the first time in 4Q05; Loans to customers for which there are delays on re-payments (of interests and capital) higher than 180 days (2) 4Q/3Q growth of Restructured Loans (+24.3%) totally due to Yapi Kredi first-time consolidation (-32.6% ex Yapi)

  20. GOOD OPERATING PERFORMANCE AND SIGNIFICANT RISK ADJUSTED PROFITABILITY OF ALL BUSINESS DIVISIONS 2005 OPERATING INCOME BY DIVISION 2005 RORAC(2) BY DIVISION Mln y/y % ch. +4.1% or +10.8%(1) Corporate & IB 2,106 17.8% Retail 1,641 +24.0% 21.3% New Europe 927 +19.4% 33.1% Private & AM 580 +29.9% 41.6% TOTAL GROUP 4,979 +10.6% 21.7% Cost of Equity Marginal RARORAC (1) Excluding derivatives (2) Return on risk adjusted capital = Marginal Rarorac + Cost of Equity

  21. AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes

  22. HVB GROUP 2005 KEY HIGHLIGHTS: EXCEEDING GUIDANCE DRIVEN BY GOOD COMMERCIAL PERFORMANCE AND COST CONTROL • Stated 2005 net profit of 642 mln, impacted by 693(1) mln of non-recurrent effects associated to the integration into UniCredit Group • Adjusted net profit of 1,162(1) mln distinctly exceeding target of 1 bn thanks to a strong operating performance • Good quality of top-line growth (+8.2% y/y), thanks to positive contributions from all core revenue sources and sound development across all business segments • Underlying performance of operating costs better than 2005 target - Efficiency program PRO already paying off in Germany • Loan-loss provisions substantially in line with expectations at 1,335 mln excluding one-offs (147 mln) • RER portfolio reduced by 5.9 bn since Dec04 (-38.3%) through proactive restructuring and successful portfolio sales, fully in line with the announced guidance • Significant increase of profitability(2) of assets (from 3.51% in 2004 to 3.87% in 2005), in line with the plan’s strategy (1) Net Profit 2005 adjusted for restructuring costs related to the integration of HVB with UniCredit (546 mln) and higher generalprovisions for losses on specific loans and advances (147 mln) (2) Calculated as Total revenues/Total Average RWAs (calculated according to KWG criteria)

  23. 2005 NET INCOME ADJUSTED FOR INTEGRATION EFFECTS BEATS TARGET OF 1 BN STATED NET PROFIT IMPACTED BY NON RECURRENT-EFFECTS 1,992 mln 147 Pre-tax Profit 546 Additional loan-loss provisions 1,299 Restructuring costs 2005 stated pre-tax profit 2005 adjusted pre-tax profit 642 1,162 (1) Net Profit • Restructuring costs include 456 mln of charges related to the integration into UCI, 90 mln of reorganization costs related to BA-CA SME business • Additional provisions due to general provisions for losses on specific loans and advances of 147 mln in 4Q05 • (1) Adjusted net profit calculated subtracting from adjusted pre-tax profit: • taxes related to restructuring costs and additional loan loss provisions for 130 mln • minorities related to restructuring costs and additional loan loss provisions for 33 mln

  24. FINANCIAL TARGETS SUCCESSFULLY MET BY HVB GROUP … HVB Group 2005(1) Y/Y % Change(1) Y/Y % Ch.(1)net of FX effect and first time consolidation (mln, if not differently specified) Good increase of core revenues Total Revenues 9,697 +8.2 +4.5 of which Resilient despite significant reduction in real estate exposure Net interest income – excluding dividend 5,575 +5.1 +1.1 Net commissions 3,198 +14.1 +11.0 Best results ever Income from fin. transactions 576 +11.0 +3.7 Operating costs -6,608 +7.5 +4.1 +0.9% excluding all non-recurring items Operating profit 3,089 +9.9 +5.1 Substantially in line with expectations Net writedowns on loans -1,482 -17.3 -18.3 Pre-tax profit 1,992 +98.8 +87.0 Net income 1,162 >+100 >+100 C/I Ratio 68.1% -60 bp -30 bp (1) FY05 Results adjusted for restructuring costs related to the integration of HVB into UniCredit (546 mln) and higher generalprovisions for losses on specific loans and advances (147 mln); FY04 Results adjusted for goodwill amortization (165 mln), allocation to special provisions for bad debt (2.5 bn) and additions to restructuring provisions (250 mln)

  25. … WITH SIGNIFICANT CONTRIBUTION FROM BA-CA BA-CA 2005(1) Y/Y % Change(1) Y/Y % Ch.(1)net of FX effect and first time consolidation (mln, if not differently specified) Total Revenues 4,268 +10.3 +5.9 of which Net interest income – excluding dividend Strong CEE, Austrian Large Corp. and SMEs margins under pressure 2,291 +4.7 -0.8 Strong Asset Management and Private Banking in Austria Net commissions 1,451 +18.3 +14.1 Income from fin. transactions 265 +9.5 +11.2 Costs under control, further improvement in productivity Operating costs -2,658 +5.9 +1.8 Operating profit 1,610 +18.3 +13.6 Net writedowns on loans -421 -0.9 -4.0 Downward trend net of one-offs Pre-tax profit 1,504 +60.2 +27.8 Net income 1,121 +67.1 +23.8 Strong double digit growth Contribution to HVB Group net income(2) 868 C/I Ratio 62.3% -255 bp -254 bp (1) FY05 Results adjusted for restructuring costs related to the integration of BA-CA with UniCredit (109 mln) and higher generalprovisions for losses on specific loans and advances (70 mln); FY04 Results adjusted for goodwill amortization (58 mln) (2) Calculated as 77.46% of Normalized net profit of BA-CA Group (1,121 mln)

  26. SOLID GROWTH OF NET INTEREST INCOME NET INTEREST INCOME – excluding dividends (mln) 5,575 +5.1% 5,303 2,291 +4.7% o/w BA-CA • FY05/FY04 growth :+5.1%, despite weak economic environment, low credit demand and high competitive pressure 2,188 +5.4% 3,284 3,115 2004 2005 GOOD COMMERCIAL PERFORMANCE FROM ALL HVB GROUP’S MAIN BUSINESS DIVISIONS(1): • Germany +2.9%, thanks to positive development in the business unit Private customers: • Consumer finance (HVB-Sofortkredit) expanded nearly 30% y/y, with new business at 845 mln and more than 22,000 new customers (+10% y/y) • Real estate finance signed nearly 15,000 new contracts for a total volume of 1.55 bn sticking to a strict risk-adjusted pricing • The cooperation with Bayern Munich soccer club leads to a volume of deposits with FC Bayern savings cards of nearly 1.8 bn; 34,000 new customers by the end of 2005 • Austria/CEE +8.9%: • Austria: volume increase in residential mortgages and consumer credit; • CEE: higher volumes over all region and in the whole product range: from current accounts to credit cards and all requested financial products • Corporates & Markets +3.6%, mainly thanks to structured finance and IMB firs time consolidation (1) Business segments performances are based on HVB Group consolidated numbers

  27. NET COMMISSIONS: BEST RESULTS EVER! NET COMMISSIONS (mln) 3,198 +14.1% 2,804 • FY05/FY04 growth(1):Securities and custodial services (+19.4% y/y), foreign trade/money transfer (+15.7% y/y) and lending operations (+10.9% y/y) 1,451 +18.3% o/w BA-CA 1,227 1,747 +10.8% 1,577 2004 2005 GOOD COMMERCIAL PERFORMANCE FROM ALL HVB GROUP’S MAIN BUSINESS DIVISIONS(1): • Germany +12.6%, thanks to: • Private Customer business’ successful sale of core products (more than 145,000 product bundles(2) sold in 2005, gaining some 32,000 new customers, also increasing cross selling rate) and strong demand for innovative investment products, e.g. certificates (total sales volumes of 885 mln, further expanding market share) and the Activest Total Return fund (2.6 bn net inflow in 2005) • Corporates – sales success demonstrates core expertise: further increased sales in mezzanine products (PREPS) • Austria/CEE +17.1%: • Austria: good performance of Retail’s securities and asset management business, Corporates’ structured investment products and derivatives, Investment Banking, foreign trade and guarantees • CEE: increasing use of corporate finance products and risk management services • Corporates & Markets +13.3%, benefiting from increase in number of transactions and sales volumes with clients as well as from improved capital markets environment (1) Business segments performances are based on HVB Group consolidated numbers (2) E.g. StarterPaket, KompaktPaket, KomfortPaket and PremiumPaket

  28. +1.7% +1.1% 102 69 + 0.9% Y/Y ADJUSTED COST GROWTH: EFFORT TO GAIN EFFICIENCY CLEARLY PAYING OFF HVB GROUP OPERATING COSTS • +4.1% y/y growth net of first time consolidation(1) and FX effects: better than 2005 guidance of +6% +0.9% UCI pro-forma figures, mln 6,608 58 +1.5% 6,608 +7.5% +2.3% 6,148 92 2,658 +5.9% 139 6,148 Non-scheduled depreciation on land/ buildings ADJUSTED ORGANIC GROWTH o/w BA-CA Group FX impact 2,509 Retention/ performance bonus First time consolidation +8.5% 3,950 3,639 2004 2005 2004 2005 • Germany(2)(3): cost efficiency program PRO already paying-off – moderate increase in operating costs (+1.9% y/y) • Private Customer unit’s costs declined by 1.3% y/y • In 2005 PRO cost reduction of 76 mln exceeded planned savings of 55 mln • Staff reduction on track while using socially acceptable measures (within HVB over two thirds – i.e. 1,420 of 2,100 – of targeted layoffs executed or finally negotiated) • Confident to achieve envisaged cost savings of at least 280 mln by 2008; restructuring costs recognized in 2004 are sufficient (1) Consolidation: International Moscow Bank; Hebros Bank;HVB Capital Asia; Banca Comerciala Ion Tiriac; HVB Serbia and Montenegro; BPH Leasing; Westfalenbank; deconsolidation: Gornoslaski Bank. (2) Numbers from HVB Group consolidated financial statements (3) Restated for IFRS revised initial application, organizational changes, deconsolidation and disposals of subsidiaries

  29. TOTAL CREDIT EXPOSURE AND NPLs COVERAGE RATIO SUBSTANTIALLY IN LINE 4Q/3Q HVB Group - Total Credit Exposure HVB Group – Coverage Ratio(2) (bn) (%) +0,1% 401.6 57.7% 401.1 56.4% 56.3% 394.4 -10 bp +1.8% -1.4% pp 4Q05 4Q05 4Q04 3Q05(1) 3Q05(1) 4Q04 adjusted for initial application of modified IFRS HVB Group – Cost of risk(3) • Total credit exposure at ~402 bn, increased by 1.8% y/y almost totally due to Austria/CEE segment (+13%) (bp) • Substantial stability of NPLs coverage ratio in 4Q vs. 3Q 75 62 • Reduction of cost of risk mainly due to lack of large write-downs of RER portfolio made in 2004 -13 bp • Total net loan loss provisions at ~1.5 bn, including 147 mln one-off • Significant improvement of risk/earning ratio(4) (from ~32% in 2004 to ~26% in 2005) 2004 2005 (1) Data consistent with HVB Group 3Q05 results presentation; credit exposure figures as of Aug. 2005 (2) Total Loan loss provisions/NPLs (Exposure in 9-10 Rating Classes) (3) Net Loan Loss Provisions (excluding special provisions for bad debt of 2.5 bn in 2004)/Credit RWAs (calculated with BIS) as of 31.12 (4) Calculated as Total Net write-downs on loans/Net interest income (HVB Group stated figures; 2004 excluding extraordinary 2.5 bn provisions on RER)

  30. RER PORTFOLIO: SIGNIFICANT AND SUCCESSFUL 5.9 BN DOWNSIZING SINCE DEC04, FULLY IN LINE WITH OUR GUIDANCE RER Portfolio – Total Credit Exposure • 5.9 bn reduction of Total RER portfolio achieved in 2005, well above expectations, thanks to effective work-out policies and disposal of a first significant tranche of ~1.8 bn made in 4Q05 (bn) 15.4 -38.3% 12.8 • Disposal of another tranche of ~2.1 bn of sub-and non-performing real estate loans already agreed and expected to be completed during 2006 9.5 • Total RER portfolio already cut back by ~50%, net of all announced disposals 4Q04 3Q05 4Q05 • Further reduction expected in 2006 and the following years

  31. -5.5 % -10.5 % -1.1 % -3.8 % GERMAN REAL ESTATE (EXCL. RER): EXPOSURE FURTHER DECLINED, PRIMARILY IN PROFESSIONAL REAL ESTATE SEGMENT German Real Estate (excl. RER)(1) – Total Gross Credit Exposure Y/Y % Change (bn) 86.9 -2.4 % 84.8 -3.2 % 82.1 Real Estate (IMO(2)) 29.6 28.0 26.5 Corporate Customers (FFB) 17.4 17.5 17.2 Private Customers (PPB) 39.9 39.3 38.4 4Q04 3Q05 4Q05 • Decrease in line with HVB's strategic goal to reduce real estate exposure (1) Based on HVB AG accounts only; Real Estate financing exposure not including RER and Cash Flow driven exposures to corporate customers handled via real estate collateralized loans (2) IMO unit comprises exposure to Professional Real Estate customers

  32. HVB GROUP – CORE PORTFOLIO(1): MODEST INCREASE OF TOTAL EXPOSURE WITH SLIGHT 4Q/3Q REDUCTION OF WEIGHT OF TOTAL NPLs Core Portfolio(1) - Total Credit Exposure q/q % change (bn) 390.3 +0.5 % 388.3 379.0 -1.5 % 12.9 NPLs (9-10 Classes) 13.1 12.8 • NPLs slightly decreased since 3Q05 while substantially stable vs 4Q04 +0.8% +0.6 % 377,4 375.2 ARF + 1-8 Classes + Not rated (2) 366.2 4Q05 4Q04 3Q05 % Weight of NPLs (9-10 Classes) • Share of NPLs slightly decreased by 2.9% in the last quarter 2005 (%) 3.4 3.4 3.3 -2.9 % 4Q05 4Q04 3Q05 (1) Total Core Portfolio excluding RER induced exposures (2) Including Not Rated exposures of ~20 bn as of 4Q04 and 3Q05 and of 18,8 bn as of 4Q05

  33. SIGNIFICANT INCREASE OF ASSETS PROFITABILITY TOTAL RWAs (EoP) (1) TOTAL REVENUES/ TOTAL AVERAGE RWAs(1) (bn) (%) 254.7 +36 bp 3.87% 246.2 -3.3% o/w BA-CA 75.9 3.50% 78.8 +3.8% 178.8 167.4 -6.4% 2004 2005 2005 2004 • Reduction of total RWAs, driven by lower real-estate collateralized credit exposure and significantly reduced market risks due to the adoption of the advanced internal model • Increased focus on higher risk-adjusted return business areas (e.g. Austria/CEE, Corporate & Markets) • Significant increase of profitability of assets, in line with the plan’s strategy (1) Including RWAs for credit, market and other risks and consolidated into UniCredit Group’s accounts; calculated according to KWG criteria

  34. AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes

  35. CLEAR INTEGRATION ACHIEVEMENTS IN ONLY FOUR MONTHS, SHOWING THE STRENGTH OF THE NEW GROUP GOVERNANCE & KEY PEOPLE MANAGEMENT • New Holding structure (Divisional/Functional approach) with new governance rules leading to clear accountability/responsibilities • Key people empowered (senior Holding Functions/Divisions managers, top management for most relevant legal entities) • Leadership Team Development to improve group execution skills (i.e. meeting in Munich involving 350 key managers) • Leadership for Results: training program for sales force and network employees in Germany and Austria CREATION OF DIVISIONAL PERIMETERS • Divisionalisation project in Germany well under way • Small business and professionals transferred to Retail division • Private customers moved from Retail and Corporate to the new Wealth Management division • Mortgage business incorporated into Retail division since beginning of 2006 • New segmentation of corporate clients; Trade finance from Investment Banking to Corporate • Divisionalisation projects started in Austria

  36. FOCUS ON ORGANISATION AND COST MANAGEMENT ORGANISATION & PROCESSES • Asset Management – Centralisation of investment management, product range rationalization and branding integration • New organizational structure in HVB: • Creation of GBS within HVB consolidating IT, back office and organizational functions • Stronger and more independent divisions also incorporating HR, Marketing and Communication, Organization and Planning & Control functions • Definition and set up of new Group Credit Governance principles (credit process redesign) COST MANAGEMENT AND RATIONALISATION INITIATIVES • Cost management team in Global Banking Services Division fully dedicated to identifying savings opportunities (operating on HVB AG and on the consolidated subsidiaries) • Centralisation and renegotiation of global purchasing also leveraging on UCI marketplace technology, creation of best practice and benchmarking as drivers for local purchasing • Project for the adoption of the single Group IT platform (Eurosig) in Germany (to be completed in 2008), but pilot initiative in Czech Republic from April 2006 • Foreign branches rationalization: streamline of operations in overlapping branches (mainly London and New York), review of presence in other markets

  37. 2006 DIVISIONAL EARLY WINS RETAIL • More deterministic incentive schemes for commercial German network to be adopted first in Retail (in 2H06) • Re-launch of consumer credit products in Germany (Sofortkredit) CORPORATE & SMEs • Launch of the Cross border clients groups (CBCG) project • Leasing as and Trade/Export Finance global business lines involving all countries of presence • Derivatives business project in Germany launched, with transfer of best practice from UBI / UBM PRIVATE BANKING & ASSET MANAGEMENT • 1.5 bn net sales in Germany in two months, comprising three major institutional mandates • Set-up of Private Banking dedicated network in Germany MULTINATIONALS & INVESTMENT BANKING • European distribution power in the primary bond market strengthened by jointly acting as Lead Arrangers (first jointly led Italian covered bond leveraging on German covered bond expertise) • By joining forces, UniCredit (represented through HVB and UBM) climbs 2005 league tables: • # 2 European CDO, CBO & CLO(1) bookrunners (total volume), # 8 ABS(2) transactions (total volume) CEE • UCI/HVB banks mergers launched in Bulgaria, Czech Rep. and Slovakia • Retail – launch of Consumer Finance (pilot JV with Clarima in Bulgaria) and Credit Protection Insurance (Croatia, Bulgaria, Czech Rep.) • Corporate – referral of German and Austrian Clients to main CEE countries (e.g. Turkey) (1) CDO: Collateralized Debt Obligations; CBO: Collateralized Bond Obligations; CLO: Collateralized Loan Obligations (2) ABS: Asset-backed Securities

  38. WHAT HAS BEEN DONE SO FAR REGARDING NEW GROUP’S STRUCTURE RESTRUCTURING • Mandatory offers on minorities of BPH (no shares tendered) and Yapi Kredi (0.005% of share capital tendered) already concluded • Bank of the Regions agreement renegotiated with AVZ and BR Funds(1): • Replacement of the previous Bank of the Regions Agreement and related agreements • BA-CA to become CEE sub-holding company within UniCredit Group • Investment banking and asset management operations to be integrated at Group level • Election of majority of BA-CA’s Supervisory Board members upon proposal of UniCredit to take place at the next ordinary general meeting of BA-CA, scheduled in May 2006 • Sale process of Splitska Banka already well advanced, expected to be finalized soon • Polish situation: • GINB(2) gave a positive recommendation to the Banking Supervision Commission on March 3rd to grant UniCredit the right to exercise its voting rights in BPH • Constructive meeting held on March 17th between Prime Minister Marcinkiewic and Mr. Profumo • Approval for UniCredit to exercise its voting rights in BPH to be discussed at the next meeting of Banking Supervision Commission scheduled for April 5th (1) BA-CA Employees’ Council Fund (2) General Inspectorate for Banking Supervision

  39. AGENDA 2005 UCI Group Consolidated Results UCI Group: Key Highlights UCI Standalone 2005 Results HVB Group 2005 Results First Integration Achievements Annexes

  40. ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division

  41. CONSOLIDATION AREA AND OTHER ACCOUNTING ISSUES • Initial consolidation of HVB Group from October 31, 2005, in compliance with IFRS3 – “Business Combinations” • Throughout the presentation, the following definitions apply: • STATED Group P&L includes HVB Group net results for November and December 2005 • PRO-FORMA Group P&L includes HVB Group net results as if it was consolidated from January 1, 2005 • Group consolidated Balance Sheet as of December 31, 2005, includes HVB Group single items line-by-line • Group perimeter includes proportional consolidation of Yapi Kredi Bancasi (57% controlled by KFS, a JV of UCI and Koç Finansal Hizmetler) from October 1, 2005 • IAS 32 and IAS 39 applied from January 1, 2005, implying that comparisons FY05 vs. FY04 and 4Q05 vs. 4Q04 are affected by differences in accounting principles

  42. “FAIR VALUE DRIVEN” BALANCE SHEET ADJUSTMENTS IN FIRST CONSOLIDATION OF HVB AND BA-CA RESULT IN 1.2 BN LOWER GOODWILL “FAIR VALUE DRIVEN” BALANCE SHEET ADJUSTMENTS Impacts In first time consolidation some assets and liabilities of HVB and BA-CA have been booked at fair value rather than at their carrying value in the balance sheets of the newly consolidated companies • 1.2 bn lower goodwill • -3 bp impact on core tier I capital • -52 mln impact on UCI’s pro-forma 2005 net profit(1) Impact on 31.10.’05 Goodwill Impact on Core TIER 1 Ratio Main Fair Value adjustments (bn, if not differently specified) Fair value adjustments on trademarks, customer relationship Intangible Assets -1.5 = Properties -0.5 + Fair value adjustments on properties Fair value adjustments on loans and advances to customers and banks Loans(2) -3.9 + Pension Plan liability adjustment based on revised financial parameters Pension Plan +1.2 - Fair value adjustments on investment portfolio Investments -0.8 + Fair value adjustments on deposits, debt certificates and subordinated debt Other liabilities(3) +3.9 - Deferred tax assets and liabilities related to the adjusted items Fiscal effects +0.5 - TOTAL -1.2 - 3 bp (1) Due to higher amortization and an adjustment on the capital gain on the sale of part of the stake in Munich Re (2) Almost entirely Loans to Customers (minimal impact also on Loans to Banks) (3) Most of this item is represented by debt certificates

  43. VERY GOOD PERFORMANCE OF UCI IN 2005 % ch on 3Q05 % ch on 4Q04(1) y/y% ch.(1) 4Q05 FY05 IAS, mln 2,794 11,024 Total revenues +0.2 +8.3 +8.0 - of which net interest income (excl. div.) +4.3 +13.4 +10.6 1,433 5,394 - of which net commissions +4.4 +13.7 +12.0 1,163 4,373 - of which trading income 96 -57.3 -40.7 842 -13.9 Administrative costs (incl. depr.) -1,624 +8.5 +12.5 -6,045 +6.0 - of which staff costs +8.7 +15.4 +7.1 -995 -3,720 - of which recovered expenses 60 -0.6 -15.5 235 +2.2 1,170 -9.3 +2.9 +10.6 Gross operating profit 4,979 Provisions for risks & charges -52 -154 +102.3 -74.3 -41.9 Net write-downs on loans +85.9 +37.7 +2.5 -314 -910 Net Profit (loss) on investments +176.7 -26.3 +159.8 73 330 Net income UCI standalone 456 -32.6 +8.8 2,573 +24.4 352 n.m. n.m. 2,470 n.m. Net income UCI stated (incl. integ. costs and HVB impact for 2M) 58.1% 54.8% COST/INCOME ratio (%) +4.4 pp +2.2 pp -1.1 pp (1) 4Q04 & FY04 excluding IAS 32 & 39

  44. DIVISIONAL CONTRIBUTION TO CONSOLIDATED RESULTS IN 4Q05 Total Group(1) 4Q05 RESULTS Retail Division Corporate Division Priv.& AM Division NE Division IAS, mln (mln - Data at current FX) Total revenues 1,122 711 397 575 2,794 +2.5% -12.5% +13.7% +1.6% +0.2% % Change vs 3Q05(2) Operating costs -672 -247 -238 -378 -1,624 -2.4% -0.1% +20.8% +32.2% +8.5% % Change vs 3Q05(2) Operating income 450 464 159 198 1,170 +10.7% -17.9% +4.4% -29.4% -9.3% % Change vs 3Q05(2) Net write-downs of loans -175 -118 -1 -40 -314 n.m. +11.3% n.m. n.m. +85.9% % Change vs 3Q05(2) Net income for the Group (UCI standalone) 120 202 113 65 456 % Change vs 3Q05(2) -43.1% -24.7% +4.7% -61.8% -32.6% C/I Ratio 59.9% 34.7% 59.9% 65.6% 58.1% -3.0 pp +4.2 pp +3.5 pp +15 pp +4.4 pp Change in pp vs 3Q05(2) Employees(3) 23,565 5,201 3,499 32,264 71,470 (1)Balance due to the Parent Company, other Group companies and elisions (3) FTE including Koc Group pro quota (2)Calculated on data at current FX; q/q % ch. non meaningful for NE division as 4Q05 includes first time consolidation of YKB

  45. NON OPERATING ITEMS 4Q05 FY05 2Q05 3Q05 1Q05 IAS, mln 1,170 4,979 1,215 1,303 1,291 Operating income -52 -154 -42 -34 -26 Provisions for risks & charges -314 -910 -190 -237 -169 Net write-downs of loans 73 +330 205 25 27 Profit/loss on investments -306 -1,396 -367 -340 -383 Taxes -57 -217 -44 -52 -64 Minorities 456 2,573 665 676 777 Net Income UCI standalone Net income UCI stated (incl. integ. costs and HVB impact for 2M) 352 2,470

  46. ASSET QUALITY: DETAILS BY DIVISIONS Retail Division Corporate & IB Division NE Division(1) Total Group(2) (IAS, mln - Data at end of period FX) Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 2,244 2,515 2,031 1,771 2,419 2,761 6,819 7,147 Gross NPL % change on Sep 05 +12.1% -12.8% +14.1% +4.8% Gross NPL/Tot. gr. loans,% 3.60% 3.87% 2.80% 2.41% 12.4% 11.7% 4.26% 4.27% Net NPL 854 990 1,015 888 275 330 2,168 2,218 % change on Sep 05 +15.9% -12.5% +20.0% +2.3% % change on Sep 05 net of YAPI FT consolidation +4.4% +0.3% Net NPL/Tot. net loans,% 1.42% 1.58% 1.44% 1.24% 1.61% 1.58% 1.42% 1.38% 1,484 1,360 720 654 496 584 2,707 2,605 Gross doubtful loans % change on Sep 05 -8.4% -9.2% +17.7% -3.8% Gross doubtful loans/Tot. gr. loans,% 2.38% 2.09% 0.99% 0.89% 2.53% 2.47% 1.69% 1.55% Net doubtful loans 886 829 490 448 383 501 1,763 1,781 % change on Sep 05 -6.4% -8.6% +30.8% +1.0% % change on Sep 05 net of YAPI FT consolidation +11.5% -3.2% 1.48% 1.32% 0.70% 0.62% 2.24% 2.40% 1.15% 1.11% Net doubtful loans/Tot. net loans,% Coverage ratios -on gross NPL, % 61.9% 60.6% 50.0% 49.9% 88.6% 88.0% 68.2% 69.0% -on gross doubtful loans, % 40.3% 39.0% 31.8% 31.5% 22.8% 14.2% 34.9% 31.6% (1) New Europe Division significantly impacted by first-time consolidation of Yapi Kredi in 4Q05 (2) Balance due to other Group companies

  47. ASSET QUALITY: DETAILS BY DIVISIONS (CONT.) Retail Division Corporate & IB Division NE Division(1) Total Group(2) (IAS, mln - Data at end of period FX) Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 Sep 05 Dec 05 - 626 406 655 4 198 413 1,485 Gross other bad & problem loans 625 366 - 994 of which: Past Due % change on Sep 05(3) n.s. -28.8% n.s. +18.9% - 516 335 565 2 190 337 1,276 Net other bad & problem loans 515 339 - 857 of which: Past Due % change on Sep 05(3) n.s. -32.5% n.s. +24.3% Total gross bad & problem loans 3,728 4,501 3,157 3,080 2,919 3,543 9,939 11,237 % change on Sep 05(3) +4.0% -14.0% +21.4% +3.1% Tot. gr. bad & pr. loans/Tot. gr. loans,%(3) 5.98% 5.96% 4.36% 3.69% 14.9% 15.0% 6.21% 6.11% Total net bad & problem loans 1,740 2,335 1,841 1,901 660 1,021 4,268 5,275 % change on Sep 05(3) +4.6% -15.2% +54.7% +3.5% % change on Sep 05 net of YAPI FT consolidation(3) +7.9% -3.7% Tot. net bad & pr. loans/Tot. net loans,%(3) 2.90% 2.91% 2.61% 2.18% 3.85% 4.89% 2.79% 2.75% Coverage ratios -on total gross bad & pr. loans, % 53.3% 48.1% 41.7% 38.3% 77.4% 71.2% 57.1% 53.1% -on total gross bad & pr. Loans (excl. past due), % 53.3% 53.0% 41.7% 42.4% 77.4% 71.2% 57.1% 56.9% (1) New Europe Division significantly impacted by first-time consolidation of Yapi Kredi in 4Q05 (2) Balance due to other Group companies (3) Net of “past due effect” in 4Q05

  48. ANNEXES Details on 2005 UCI standalone results Divisional Reporting Retail Division Corporate & IB Division Private Banking & AM Division New Europe Division

  49. RETAIL DIVISION: FY05 RESULTS BREAKDOWN BY COMPANY UniCredit Banca Clarima UBCasa UniCredit Assicura TOTAL1 (mln) Net Interest income (incl. div.) 2,240 170 131 2 2,509 Net non interest income 1,843 32 -4 11 1,882 Total revenues 4,083 202 127 13 4,391 Operating costs (incl. dep.) -2,608 -74 -60 -8 -2,750 -1,517 -20 -24 -3 -1,564 - of which: Staff costs -1,235 -59 -37 -4 -1,336 - of which: Other admin. expenses 1,474 128 67 5 1,641 Net operating income -191 -70 -39 - -460 Net provisions - o/w: Net write-downs of loans -299 -69 -39 - -407 -85 - - - -85 Restructuring Charges Net income 735 35 28 3 609 Net income for the group 735 35 28 3 609 63.9% 36.7% 47.2% 61.1% 62.6% Cost/income Ratio 1 Balance due to roundings and elisions

  50. RETAIL DIVISION: 4Q05 AND 2005 INCOME STATEMENT 4Q05 % ch. on 3Q05 % ch. on 4Q041 2005 y/y % ch.1 (mln) Net Interest income (incl. div.) 654 +3.8 +7.9 2,509 +8.1 Net non interest income 468 +0.5 +1.6 1,882 +9.1 Total revenues 1,122 +2.4 +5.2 4,391 +8.5 Operating costs (incl. dep.) -672 -2,4 +1.9 -2,750 +1.0 -394 +3.5 +4.3 -1,564 +1.4 - of which: Staff costs -320 -6.1 -3.4 -1,336 +2.2 - of which: Other admin. expenses 449 +10.6 +10.5 1,641 +24.0 Net operating income -196 n.m. n.m. -460 +39.9 Net provisions - o/w: Net write-downs of loans -175 n.m. n.m. -407 +47.0 -85 - -41.7 -85 -41.7 Restructuring Charges Net income 63 n.m. -33.9 609 +23.0 Net income for the group 63 n.m. -33.6 609 +23.4 59.9% -296 bp -192 bp 62.6% -465 bp Cost/income Ratio 1 2004 and 4Q04 do not include IAS 39 effect