Building a Tier I European Player in Consumer Financing

London, October 10th 2007

Raffaele Cicala – General Manager

2

AGENDA

Who we are

• Our presence in Italy

• Main challenges in the Italian Market

Our ambition

• Building a Tier I European Player in CF

• What we have done over the last 12 months

• Playbook 2008

3

AGENDA

Who we are

• Our presence in Italy

• Main challenges in the Italian Market

Our ambition

• Building a Tier I European Player in CF

• What we have done over the last 12 months

• Playbook 2008

4

+17% y/y

UNICREDIT CONSUMER FINANCING(1): PRESENT POSITION IN ITALY

• 4.6 bn total outstanding loans, mostly on personal loans and revolving cards to captive customers

• New flows: UCFin growing 20% y/y, outpacing market and main competitors

Personal loans

Credit cardsPOS

Automotive

LoS(2)

Source: UCFin interim report and Assofin data as of 1st Half 2007

Automotive POS Credit cards LoSPersonal loans

31,028 3,124 +2% y/y 1,949 +20% y/y2,649 +11% y/y

(1) UniCredit Consumer Financing (UCFin) is the new corporate name that UniCredit Clarima Banca will start using in February 2008. Even if the current corporate name is still UniCredit Clarima Banca, in this presentation the new branding is used for simplification purposes

(2) Loans on salary

10,005

11,715

2,893

4,444

1,973

Market

1,230

634

562

699

Player # 1

661

922

160

893

12

Player # 2

864

138

834

88

24

UCFin

5

MAIN CHALLENGES AND OPPORTUNITIES IN ITALY

Build positions in Car financing LoS

Complete integration of Capitalia business into UCFin… … to enlarge captive customer base … to exploit clear customer penetration opportunity

… to address relevant market segments … to increase cross-selling opportunities

Personal loans penetration *

9.0%

6.1%

UCB CAP

* On Mass Market + Affluent customers

Revolving cards penetration *

13.6%

4.7%

UCB CAP

6

AGENDA

Who we are

• Our presence in Italy

• Main challenges in the Italian Market

Our ambition

• Building a Tier I European Player in CF

• What we have done over the last 12 months

• Playbook 2008

7

BUILDING A TIER I EUROPEAN PLAYER IN CONSUMER FINANCING:UniCredit current position in Consumer Financing

~30

10

~37

Sofinco (CA)

~47(1)

25(2)

~51

Cetelem(BNPP)

~31

~11

~13

SCF (Santander)

Outstanding loans(Bn €)

Mln customers

Countries of presence

(1) Including Cofinoga(2) Of which 17 in Europe

~13

16

~6

UCI

~15

9

~8

SoGen

Tier I Tier II

8

BUILDING A TIER I EUROPEAN PLAYER IN CONSUMER FINANCING:The ambition

From a purely domestic player…… to a Tier 1 European player in the next 5

years setting up foreign branches or subsidiaries

Foreign branches• Germany• …• …

Subsidiaries• Bulgaria• …• …

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BUILDING A TIER I EUROPEAN PLAYER IN CONSUMER FINANCING:Our strategy

• Leverage existing assets in countries where the Group has a strong retail base

Consolidate business from retail banks

Increase specialization to enhance risk management and Customer Value Management

on ~40 mln customers (1)

> 9,000(1) branches to create in-branch corners

• Selectively develop alternative channels to accelerate new clients acquisition (global

partnerships, third party networks, direct channels)

• Develop POS financing especially in faster growing CEE with weaker UCI retail positions

(1) Including Capitalia and ATF Bank (Kazakhstan)

10

14%

Source: UCFin, Eurofinas, ING, NBP, National Banks, BCG Analysis

41%

Poland

3288119

20%

70%

25%

180 12 921

Ukraine

Romania

Austria

53%

33%

34%

50%

40%

50%

36%

Italy Germany Russia

Personalloans

POS and Automotive

financing

Revolvingcards

3

2

1

• Add on across

markets/channels

Revolving Cards

Personal loans

• Core Business• Focus on captive

POS/Automotive

• Selectively

by market

2009E stock, Euro bln

5%16%14%

3% 3%

60%57%56%

20%

BUILDING A TIER I EUROPEAN PLAYER IN CONSUMER FINANCING:Our products & markets focus

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WHAT WE HAVE DONE OVER THE LAST 12 MONTHS

• Strong boost of Italian operations

• Developed new countries

• Developed global platform, competencies and organization

• “Clarima” Rebranding

…while boosting economic and financial results

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WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: Strong boost of Italian operations

• Focus of organization, as reference platform

• Enhancement of risk management supported by new tools (for decision, monitoring, collection)

• Creation of larger collection factory

• Improved existing IT platform to support new processes (credit, CRM, commercial)

• Cost reduction by improving processes efficiency

• Created 226 specialised corners within UCB branches

Organization

Products

Processes

Captive Channel

• Launched 5 new products (Top, First, SB auto financing, auto insurance, new insurance cards)

• Optimized CVM on captive client base

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WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: UCFin Italy focus of organization

BoD 10-9- 2007:

NEW ORG CHART

Legal & Corporate Affairs Direct Marketing & CVM

Planning, Administration and Risk Management

Business Non Captive

Credit

Operations

CHAIRMANBoard of Directors

Loans on Salary

Human Resources

Business Captive

• Staff Credit-Dep Cont Bud & R• Underwriting• Credit Policies, Monitoring &

Tools• Credit data Quality & Fraud Risk• Workout

• Co-branding• Third Party Networks• Regional Areas• Key Account Automotive

GENERAL MANAGER

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• GERMANY: Set up of UCFin German Branch, in March 2007, revolving cards (new product for HVB)

launched in the captive channel Full roll out of revolving cards in all HVB branches after pilot successful Personal loans in captive channel under development

• OTHER EUROPEAN MARKETS: Assessment of market potential and business model in core UCI markets Targeted launch of 2-3 markets set for 2008-2009 Personal loans and POS/Automotive financing as first products to be introduced,

revolving cards to follow

• BULGARIA: NewCo, co-owned by UCFin and Bulbank, set up in 2006, 2% market share in PoS

financing Developed and successfully tested CF Corner in 5 Bulbank branches with full UCFin

advertising and processes allowing over 50% new client acquisition. Accelerated plan for opening up to 100 corners under development (Gold, Bronze, Silver)

WHAT WE HAVE DONE OVER THE LAST 12 MONTHS:New countries developed

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WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: Creation of a global platform

• CREDIT RISK

Processes and tools re-designed for global expansion

• GLOBAL IT

Set up of a dedicated team within UGIS to serve UCFin needs

• CAPABILITIES BUILD UP

Major recruiting effort undergoing, with addition of global talents from Group and external specialists

Strengthening of skills in Operations, HR, CRM, CRO and CFO family in progress

Business Development team strengthened

16

WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: Global organization structure and governance

HR

IT/OP.Business Development

Management Committee

Finance

CRM

Italian Market GAP CEE

GM

Board

Risk Management

• Corporate center, reporting to GM, with responsibility to steer, coordinate and control operations

• Management system based on

2 “competence lines” and

3 “core platforms”

3 geographical areas

Governance

Co

rpo

rate

Ce

nte

r

• Germany

• Poland

• Austria

• Bulgaria

• Romania

•……..

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TodayToday TodayToday

Italy

Germany

Bulgaria

WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: Company rebranding (1/2)

Tomorrow (QI 2008)Tomorrow (QI 2008) Tomorrow (QI 2008)Tomorrow (QI 2008)

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WHAT WE HAVE DONE OVER THE LAST 12 MONTHS: Company rebranding (2/2)

• From a (customer) rational standpoint: clarifies the nature of the business (financing)

• From a (customer) emotional standpoint: it implies support to realize customers’ projects

• Clearly part of UniCredit Group, of which it shares the values

• Can be used in all geographical markets and achieve faster visibility and customer recognition

• Red vs. orange logo: take on UniCredit Group colour and be more distinctive

WHY UNICREDIT CONSUMER FINANCING (UCFin)

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STRONG BOOST OF ECONOMIC PERFORMANCE OF ITALIAN OPERATIONS HAS ALLOWED TO FINANCE INTERNATIONAL DEVELOPMENT SO FAR

y/y ch.1H071H06

Outstanding volumes 4.6 bn +13.9%4.0 bn

Total Revenues 145 mln +18.9%122 mln

Cost / Income 36.4% -220 bp38.6%

Pre-tax profit 44 mln +269%12 mln

Risk provisions -23.8%-48 mln-63 mln

EVA +9 mln n.m.-10 mln

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PLAYBOOK 2008

2-3 new markets 1 new business line (Automotive Large

Dealer) Expansion of shops/corners Capitalia business integration Central underwriting and collection process Revised collection strategies New credit monitoring board New CVM process and optimization tool MIS set-up Customer satisfaction org. & processes

Completion of global CF org. enhancement Governance, scope of Joint Ventures Value sharing rules with banks Bank SLA framework Standardized 3Y plan cycle Corporate rebranding

DriverDriver InitiativeInitiative CountryCountry

New growth

initiatives

Build up capab.

Corporate/ Org.

enhanc.

…

…+ …+ …

+ …