BANCA INTESA AND FINANCE FOR SOCIAL ENTERPRISE Milan, November 22nd 2006

2 A word about Banca Intesa Banca Intesa is the largest bank in Italy and one of the main players in the Italian banking scenario. With workers and almost branches in Italy and abroad, Banca Intesa is active in practically all banking businesses (retail, corporate, investment and merchant banking), where it has leading market shares. As you might have read in the press, Banca Intesa is in an advanced process of studying its merger with Sanpaolo IMI, Italy’s n° 3 commercial bank, which will make the new entity even more present and active on the global financial markets. Banca Intesa itself is the product of mergers that have taken place in the past, one of its “ancestors” being CARIPLO, at the time the largest savings bank in Europe, which was partly transformed by the Amato law of 1993 in a Foundation that has actually a 9% share of Intesa. This is to say that we have strong, long-lasting roots and ties to our territories and thus to the world of non profit organizations.

3 Banca Intesa and social responsibility Banca Intesa is a modern, socially sensitive financial institution with 4 business units that prove its strong engagement to social responsibility:  a CSR departmentEthics Code Internal Guidelines Social and Environmental Report  a company forspecialized in banking to the central Public SectorState and local administrations (Regions, FinanceProvinces, Municipalities)  an Ecclesiasticaccounts, mortgages, ethic funds, software Institutions and consulting dedicated to church and Non Profit congregations, retirement homes, Finance Unit schools, therapeutic communities etc.  a Social Project...that’s where I belong! Dep’t

4 The Social Projects Department Through its “Bank and Society Lab”, Banca Intesa elaborates innovative projects on the main issues on welfare and competitiveness in Italy:  welfare services to children, the elderly, the handicapped; fight against usury; integration of immigration; finance for temporary workers; social housing  competitioncollege and research technology transfer to industry encouraging renewable energy These projects are not philanthropy, charity or sponsoring - but financially viable banking operations where considerable amounts of resources are dedicated to issues strategic to the future of Italy. Moreover, they have to be “repeatable” meaning that they are tested on a certain area but then exported to other geographical / administrative subjects. They are often built in partnership with, and sometimes with the financial participation, of public entities, networks of social companies, foundations, colleges etc.

5 Banca Intesa and social enterprise As you have realized Banca Intesa through its historic presence as well as through the business units mentioned above, knows well social enterprises and the financial issues affecting them:  small enterprise size  low capitalization  little guarantees available  a mismatching treasury due to long public incomes – short payments to suppliers  difficulty in setting up viable business plans  absence of an adequate social rating The shrinking of public budgets that has affected Italy in the past few years, as well as the upcoming Basel II regulations, represent further difficulties for social enterprises in their relations with banks. Nevertheless, our Social Project Department has established very strong financial ties with social enterprises, as you will see later on.

6 Banca Intesa and the Urban II project Urban is a 27 million € project, based on EU initiative, for the upgrading of a a 12 sq km, inhabitants area in the North-East of Milan. Banca Intesa has participated in a temporary company (with the Development Agency of Milan, the Public Housing Authority, two important local colleges of Economics and Engineering, plus project finance and IT experts) that has won the 3 million € competition with the aim of:  supporting innovation, with Intesa Nova  financing social enterprises that want to open of kindergartens, with PAN  provide project finance dedicated to building campuses  make available to laid off workers the anticipation of unemployment benefits, with Anticipazione Sociale  financing social enterprises of that area with 10 million € of loans at very inexpensive rates.

7 The PAN project With the PAN project (Progetto Asili Nido = Kindergartens), Banca Intesa has aimed to:  helping families that don’t find place in kindergartens or have problems paying the fees  equal opportunities (making possible for young mothers to come back to work)  encouraging mostly female entrepreneurship and creation of job opportunities The project lies on the involvement of Banca Intesa + 3 large social enterprise networks (CGM, Legacoop, Compagnia delle Opere), that have built up together a consortium that checks on the quality standards, the brand, the training of the new entrepreneurs and their staffs. The social networks guarantee the social enterprises through a fund. Banca Intesa finances both the entrepreneurs wanting to open a kindergarten (up to €), and the families having to pay the fees (up to ).

8 The Talenti project This project was born when we became aware that:  the State has less and less resources due to welfare issues more and the presence of social enterprise is growing in this field  due to the vocational crisis within the church, more and more real estate is left empty The project consists in the creation of a Foundation, owned by Banca Intesa, a network of social enterprises and 2 of the largest church organizations in Italy, that will:  restructure and revitalize church property, that can be used if necessary by renting, selling or as a guarantee  the social enterprises will support and integrate the work of the holy orders, using the mentioned real estate for welfare activities  Banca Intesa will put all its know how and financial possibilities (real estate operations, financing social enterprise start-ups, financial services for all).

9...but what about the future? ?