Andrea Moneta, Managing Board Member, BA-CA Martin Mayr, Market Research, BA-CA London, 21 May 2006 EBRD Annual Meeting Retail banking on the move: the latest trends and developments in CEE

Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business Part 2: Market research – the latest trends and developments (M. Mayr) Banking penetration Usage of products and services Summary and outlook Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation Agenda

3 UniCredit is a Truly European Bank … nThinking globally and operating on multi- local basis nCreating sustainable long-term value nExploiting complementary nature of Group's best practices nDeveloping the best of local cultures and brands already recognized and established Note: 2005 data 1 Consolidated 2005 pro forma for UniCredit Group including HVB Group stand alone 12 months results, integration effects and other one-off costs 2 Ranking as at 16 March Source: Datastream nBanking operations in 20 core countries n28 million customers n7,184 branches n148,000 employees nNet profit: € 3.4 bn 1 nTotal assets: € 782 bn nDeposits and debt certificates: € 462 bn nLoans: € 427 bn nGlobal player in asset management: approx. € 272 bn AuM with coverage in 20 countries in 5 continents n25 th European company in terms of capitalization 2

4 … with the by far most extensive CEE banking network... CEE region 1 €92.7bn total assets 2,932 offices 60,722 employees ~17million customers Ranking, total assets and number of offices of BA-CA and UniCredit in CEE as of 31 December including - Banca Tiriac (Romania) - NBB (Bosnia/Rep.Srpska) - Yapi Kredi (Turkey) excluding - HVB Splitska banka (Croatia)

5 UniCredit Group has a particularly strong competitive advantage in CEE. Its size – in terms of revenues, total assets and branches – is more than double that of the second player. 4, ,864 1,715 1,420 1,126 1,660 1, N.A , , Revenues (Euro m)Total Assets (Euro bn)Branches (no.) 1, ,536 1 Source: Internal data - as at end of Including on a pro-forma basis the recently acquired Banca Comerciala Romana … where it operates as the undisputed leader. Central & Eastern Europe – Top Financial Groups (2004)

6 CEE markets offer a huge potential... population about 440 m population about 160 m Inhabitants 2005 Armenia3 Azerbaijan 8.3 Bosnia3.8 Bulgaria7.8 Croatia4.4 Cyprus0.8 Czech Rep.10.2 Estonia1.4 Georgia4.7 Greece10.6 Hungary10.1 Kazakhstan15.1 Latvia2.3 Lithuania3.5 Macedonia2 Moldavia4.5 Poland38.2 Romania21.7 Russia143.6 Serbia10.6 Slovakia5.4 Slovenia2 Turkey69.6 Ukraine47.6 Belarus9.9

7...especially in retail banking: CEE revenue potential REVENUE POOLS 2004 IN EURO MILLION Austria Retail Banking Corporate Banking 4,873 2,618 Investment Banking 1,024 Turkey 4,457 2, % 100% 0% Note(s): Percentages on top of chart reflect share of country in total CEE revenue pools Source(s): National banks; Economic Research Department BA-CA; BCG analysis Russia 3,563 3,503 1,315 26% Poland 2,768 1, % Hungary 1, % Czech R. 1, % Croatia % Romania % Ukraine Slovakia % % 51% 11% 5 Slovenia Serbia Bosnia Bulgaria 3%

8 Household loans and deposits have grown strongly in recent years... Increase since 2000: household loans +62%, household deposits +26% p.a. compared to 5% in the euro area

9 Household deposits and loans (2000 and 2007 in EUR per capita) PLHUCZSKHRBGRORUCEE Deposits 2000 Loans 2000 Deposits 2007 Loans 2007 Source: BA-CA Economics Department, UCG New Europe Research Network Euro area deposits loans +7% cagr +44% cagr +12% cagr +17% cagr +29% cagr +30% cagr +17% cagr +11% cagr +20% cagr +4.4% cagr* * 2000 to and the outlook for the retail sector remains positive

Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business Part 2: Market research The latest trends and developments (M. Mayr) Banking penetration Usage of products and services BA-CA loan barometer Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation Agenda

11 Study 1: Basic Tracking Retail Banking Markets Universe: adult population aged 15 years and older Methodology: personal face-to-face interviews Samples: 5000 interviews/country Fieldwork time: January 2005 – November 2005 Agencies: Fessel&GfK (CZ, SK, CRO, BG, RO, UA, RU), RmPLUS (SLO, BiH, SCG), TNS MODUS (HU) and SMG_KRC (PL) Study 2: “ Loan Barometer“ - initiated by BA-CA Universe: adult population aged 15 years and older Samples: 1000 interviews/country Methodology:personal face-to-face interviews Fieldwork time: January 2006 Agencies: Fessel&GfK (CZ, SK, BG, RO), RmPLUS (SLO, BiH, SCG), TNS MODUS (HU) Market research: design of the studies

12 Banking penetration of retail clients at end 2005 % of the population aged 15+ who have a business relation with a bank Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL) average new EU markets 2005: 78% average candidates & west Balkans 2005: 52%

13 Size of population and number of bank clients BGBiH CRO CZ HPL RO SCG SK SLO A D Population aged 15yrs+ (in m) Have bank relationship 37%37% 83% 81% 65% 62% 50% 64% 81% 99% 98% 98% Banked in m Not banked in m

14 BGBiHCROCZH PLROSCGSKSLO A D Banked population Any account27*) Current account **) Bank card E/I-Banking Phonebanking Account overdraft N/AN/A Penetration with banking products/services % of population aged 15+ who use this service/product by end 2005 *) 27% of adult Bulgarians have an account (current account or debit card account)**) RO: 15% use “card accounts“ Source: BA-CA Market Research, HypoVereinsbank, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)

15 Penetration with banking products/services % of population aged 15+ who use this service/product by end 2005 BGBiHCROCZHPL ROSCGSKSLOAD Banked population Any deposits Sight deposits (savings book) Time deposits Securities Any loans excl. overdraft Consumer loan Mortgages Source: BA-CA Market Research, HypoVereinsbank, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)

16 Trends in use of banking services/products % of population aged 15+ who have... note: figures do not represent volumes in €...any type of account...any type of deposits (excl. account)...any type of loan (excl. account overdraft) Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL)

17 Planned investments CEEBGBiHCZHUROSCGSKSLO Holiday trip, sport activities Education (own, of children,...) Larger household appliances (fridge, dish washer,...) Health (operations, teeth corrections,...) Larger electronical items (PC, TV set,...) Family events (weddings, big birthday parties,...) Furniture Car Plastic operation Don’t know / No answer Q: In which of the following items do you or our family plan to invest in the next 12 months? Basis: Total in % Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU), SMG_KRC (PL)

18 Way of financing % savings% loans Mainly by savings Holiday trip, sport activities787 Health (operations, teeth corrections,...) 759 Education (own, of children,...)7610 Family events (weddings, big birthday parties,...) 787 By savings or loans Furniture5832 Larger household appliances (fridge, dish washer,...) 5432 Larger electronical items (PC, TV set,...) 5533 Plastic operation4834 Mainly by loans Car4054 Q: How do you plan to finance these items? Basis: plan to invest in the following item

19 Planned financing Q: How do you plan to finance these items? Basis: plan to invest in the following item Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL) Health CZ HU SLO RO SCG BiH BG RO SK BG CZ HU SLO SCG BiH CZ HU SK CZ HU SLO HU RO SCG BG RO BG CZ HU SCG SLO SCG HU CZ SK Holidays, sports

20 Planned financing Q: How do you plan to finance these items? Basis: plan to invest in the following item Source: BA-CA Market Research, Fessel&GfK (A, CZ, SK, RO, BG, CRO, UA, RU), RmPlus (SLO, SCG, BiH), TNS MODUS (HU); SMG_KRC (PL) CZ SK SLO RO SCG BG RO CZ SLO SCG BiH CZ SK SLO Large household appliances CZ SK HU RO SCG BG RO HU SLO SCG BG SLO HU CZ Cars

21 Gaps in banking penetration between countries in the CEE region still exist, but are becoming smaller. Usage of consumer loans as well as demand for credits is significantly increasing. The strongest need for loans to finance consumer goods was reported in Romania, Serbia and Montenegro, Bosnia and Herzegovina, and Bulgaria, while Czechs, Slovenes and Slovaks are more likely to use own savings. “Saving discipline“ has become weaker; tendency to satisfy own needs is growing. Summary and outlook

Part 1: The Group in CEE (A. Moneta) The leading banking network in CEE Retail banking is the growth driver in CEE business Part 2: Market research – the latest trends and developments (M. Mayr) Banking penetration Usage of products and services Summary and outlook Part 3: A strong force in retail banking (A. Moneta) The name of the game is innovation Agenda

23 CEE is a huge market with high potential. With a clear strategy, every CEE country offers excellent opportunities for further growth in retail business. The CEE region has big advantages compared to the “old” EU markets: It’s a new and “learning” market - CEE does not repeat the mistakes international banks made in their “old” home markets. Development processes are much faster. UniCredit Group’s approach: 1) Innovation: Quick reaction to trends in the banking market Example: Introduce more diversified savings products (asset management, etc.). 2) New ways of distribution: Mobile Sales Force and Cooperation Channel to enlarge the sales capacity leveraging on new network structure Examples: –Retail loans in Romania (almost 40% of the monthly new retail loan business comes from this channel) –Mortgages in Bulgaria (around 25% of the new mortgage business is based on this channel) 3) Factory centralisation: getting benefits from economies of scale and sharing best practice in production process – Example: Card Centre in Prague currently servicing the Czech Republic, Slovakia and Hungary The name of the game is innovation

24 Customer satisfaction is the winning strategy Customer acquisition is the game all banks play, but: Customer satisfaction is the winning strategy. We emphasise tailored service models for our customers and leverage the strengths and the knowledge of the Group’s network: Wide and innovative product offering, proven by our leading positions - e.g.: Number 1 in mutual funds (Poland), Number 1 in mortgage loans (Croatia), Number 1 in credit cards (Turkey), Number 1 in custody (Slovenia) Service models with dedicated divisions Physical proximity to our clients and 24 hour availability through state-of-the-art IT services and call centres Special focus on recruitment and staff development