“Capturing the value of Consumer Credit in growing Retail Banking” Silvio Barzi – Clarima CEO Goldman Sachs Consumer Finance Conference London - October, 16 th 2003

2 AGENDA Importance of Consumer Credit for UCI’s strategic goals Attractive opportunities in Consumer Credit Results to-date & conclusions UniCredito’s answer: Clarima

3 8.3% CUSTOMER DRIVEN ORGANISATIONAL MODEL Pekao New Europe division Private & AM division Pioneer Xelion Corporate division UBM BMC Locat Clarima TradingLab RETAIL DIVISION Zagrebacka KFS Bulbank UniBanka UC Romania Zivnostenska 45.7% 30.9% 15.1% Weight on 1H03 Group revenues Employees Italy New Europe 70,356 40,228 30,128 Branches Italy New Europe 4,598 3,248 1,350 UniCredit Banca per la casa

4 THE RETAIL DIVISION COVERS THE ITALIAN MARKET THROUGH A NUMBER OF PRODUCT & CHANNEL SPECIALISTS Retail Division Retail investment products through captive and non captive networks Consumer credit products through direct channels, partners and captive networks Banking products for households and small business through proprietary branch network Mortgages and home related products through organised intermediaries (real estate agents, insurers…) per la casa

5 TAILORED STRATEGIES FOR DIFFERENT CUSTOMER SEGMENTS, CONSUMER CREDIT KEY FOR RETAIL BUSINESS High importance Low importance Sources of revenue growth Existing customers New customers Efficiency Risk mgmt Corporate business Private Banking business New Europe Retail business High growth / High value businesses Consumer Credit Retail mortgages Small Business

6 AGENDA Importance of Consumer Credit for UCI’s strategic goals Attractive opportunities in Consumer Credit Results to-date & conclusions UniCredito’s answer: Clarima

7 CONSUMER CREDIT: LOW PENETRATION IN ITALY … EFUKDI As % of GDP As% of private consumption As % of disposable income EFUKDI EF DI

8 … BUT A FAST GROWING BUSINESS KEY DATA TOTAL CONSUMER CREDIT MARKET (Euro bn) REVOLVING CREDIT INSTALLMENTL OANS Growth:+33% Revenues: 0.3 Growth:+16% Revenues: 2.4

9 MAJOR SHIFTS AMONG PRODUCTS EXPECTED IN THE LONGER TERM ITALY – EXPECTED EVOLUTION OF STOCKS (Euro bn and %) Revolving Market (100%) = CAGR E 32.2% 23.3% 13.3% 13.2% Direct Loans POS Financing Automotive 16.5% Other 60,7% 14,7% 14,4% 5,5% 55,0% 16,1% 17,2% 6.7% 49.0% 14,4% 21,6% 11,1% E ,7% 5,0% 3,9% 9.5%

10 RORAC PER BUSINESS (2001, %, rates and new loans) ATTRACTIVE PROFITABILITY IN CARDS Loan growth 2001 vs 2000 (%) RORAC (%) Industrial Vehicles Employer Guaranteed Motorcycles Personal Second-hand cars Appliances Credit Cards New Cars 0

11 Lack of product innovation NON AFFLUENT MARKET PRESENTS UNIQUE OPPORTUNITIES … Limited customer acquisition activity No tailored operations for mass customisation Limited marketing sophistication No specific segment attention MARKET CONDITIONS ClientsMargins Affluent Non affluent 24 mln27 bn Euro 15% 85% 75% 25%

12 … AND BANKS HAVE BEEN LOSING MARKET SHARE % % 37 TOTAL CONSUMER CREDIT MARKET (Euro bn) % Banks market share

13 NO ACCEPTABLE ANSWER TO A MARKET IN NEED OF FOCUS AND SEGMENTATION TRADITIONAL BANKS Brick and mortar legacy Focus on managed assets No innovation No mass service culture FINANCE COMPANIES POS financing primary product Limited customer loyalty Limited cross selling BancoPosta, not replicable Foreign entrants, primarily monoliners NEW PLAYERS

14 FRAGMENTED MARKET WITH TRADITIONAL “STAND ALONE” MODEL … 69,9% 89,5% Findomestic DB Prestitempo Finemiro Ducato COMIT Agos Itafinco Compass Citifin FidItalia Finconsumo Others ITALY – MARKET SHARES BY BUSINESS LINE Loans granted in 2001, Euro mln & % POS Financing (incl. Automotive) Personal Loans 3,139 1,909 1,571 1,354 1,222 1, Fiat Fidis Findomestic DB Prestitempo FidItalia Agos Itafinco Compass Finemiro Citifin Finconsumo Ducato Others Cumulative market share first 10 players

15 … AND THE MARKET ENVIRONMENT IS QUICKLY CHANGING Italian Savings Rate over time 0% 5% 10% 15% 20% 25% DEMAND SIDESUPPLY SIDE “The new card by AmEx and Enel. … “ New revolving card from AEM Milano and Compass called AEM Visa, launched at early 2001 Desideria from Banca di Roma launched at the end of 2000 (“first revolving card with flexible payments for Italians”). EGO from Credem launched at mid 2001 (also for clients without an account at Credem) New revolving co-branded cards (ex. Findomestic-Mediaworld, … ) “Citibank Card will invade Italy. … cards issued before 2004” “Barclaycard is to launch in Italy (early 2002) as part of an aggressive plan to expand in Europe”

16 AGENDA Importance of Consumer Credit for UCI’s strategic goals Attractive opportunities in Consumer Credit Results to-date & conclusions UniCredito’s answer: Clarima

17 A MAJOR INNOVATION IN PFS … Focus on non affluent segment Customer acquisition and cross selling through variety of channels Low cost non traditional infrastructure Simple, innovative, consumer oriented products Lead with credit cards, cross-sell next CLARIMA’S CONCEPT

18... CAPTURING A UNIQUE OPPORTUNITY IN CREDIT CARDS … Majority of card accounts deferred debit/charge No flexible revolving No price differentiation based on credit risk No sophisticated micro marketing Static products WHAT THE MARKET OFFERS No up and cross selling Limited push by traditional banks

19 Real estate agents (2500) … LEVERAGING SPECIALISATION AND MARKET POWER OF THE LARGEST DISTRIBUTION NETWORK IN ITALY Retail Division Partners (25) Third parties Stock exchange Leads   per la casa   Branches (2750)

20 STRONG INTEGRATION ACROSS RETAIL CHANNELS FOR COMMERCIAL ACTIONS … PartnershipDirect Pos/ Merchants Specialized Shops UCB Branches Strong focus Medium focus Acquisition Cross selling COMMERCIAL ACTIONS CLARIMA CHANNELSBANK TRADITIONAL FINANCE COMPANY INNOVATIVE CHANNELS TRADITIONAL BANK

21 … SINCE DIFFERENT PRODUCTS REQUIRE DIFFERENT CHANNELS PartnershipDirect Pos/ Merchants Specialized Shops UCB Branches PRODUCTS Revolving cards Pos financing CLARIMA CHANNELSBANK Personal loans Credit insurance Strong focus Medium focus

22 Lower customer acquisition cost Better knowledge of the customer, lower risk Enhanced customer relationship and cross selling Piggy backing on partner’s brand Strengthening of customer loyalty Reducing administrative costs Adding new revenue stream Strengthening of core product offering Lowering joint customer acquisition cost ACQUIRING CUSTOMERS THROUGH INTIMATE CO-MARKETING PARTNERSHIPS ADVANTAGE FOR PARTNER ADVANTAGE FOR CLARIMA Co-Marketing Partnership

23 DIRECT IS PROVING PROMISING REVOLVING CARDS PENETRATION MarketClarima Non-Direct Clarima Direct 7% 50% 83%

% RESULTS ABOVE EXPECTATIONS FROM PARTNERSHIPS AND DIRECT PROFITABILITY DRIVERS Italian avg. Clarima cards % Revolving usage # Year transactions Avg. spending/ Transaction Avg. balance > 70 Integrated marketing and risk strategy Euro 900 Euro 81 Euro 1,350 Euro 60%

25 UNICREDIT BANCA CAPTIVE MARKET OPPORTUNITIES With pay later cards Without cards Total target customer base Cross sell revolving Cross sell other products Sell revolving Cross sell personal loans (Mln) UCB RETAIL CUSTOMERS

26 EXCELLENT RESULTS ON CAPTIVE MARKET Redemption DIRECT Public ‘02Captive ‘02 x 6.6 Captive ‘03 Revolving Penetration (%) Revolving Pay later 83% Public ‘02 100% 71% Captive ‘02UCB DIRECT “CAPTIVE” RESULTS Higher redemption rates 70% lower acquisition costs 50% to 70% lower credit risk Increase in competitive pressure REASONS FOR “CAPTIVE” 5%

27 AGENDA Importance of Consumer Credit for UCI’s strategic goals Attractive opportunities in Consumer Credit Results to-date & conclusions UniCredito’s answer: Clarima

28 CLARIMA: RESULTS TO DATE 25 Partnerships Direct channel fully operational ~150,000 cards/new customers in 18 months 2,750 bank branches fully operational for personal loans Extensive testing of cross selling/upselling on captive customers POS financing and specialized stores to start operations in 1H04 Significant investments in credit scoring systems

29 STRONG CONTRIBUTION OF CONSUMER LENDING TO THE DIVISION’S GROWTH … 3 MAIN DISTRIBUTION CHANNELS PARTNERSHIPS AND DIRECT MARKETING UCI Banca SPECIALISED FINANCIAL SHOPS Key goals: ~800,000 net acquisitions of customers from 2003 to 2006 Revolving cards / Total cards ratio higher than 50% Clarima as the “consumer credit specialist” of the Group Full commercial integration with UCI Banca Maximisation of UCI Banca customers potential for credit cards and personal loans Dedicated and alternative distribution traditionally strong in Italy Market share evolution ~7.5% > 9% + 20% LEVERAGING ON: Focus on “credit at point of sale” Key figures (as of June 2003) ~3.8 bn consumer loans (+10% vs year-end 2002) ~150,000 clients for Clarima

30 … THANKS TO TAILORED STRATEGIES FOR EACH DISTRIBUTION CHANNEL STRATEGIC GUIDELINES PARTNERSHIPS AND DIRECT MARKETING UNICREDIT BANCA SPECIALISED FINANCIAL SHOPS New selected partners strong for distribution capability, customer base and brand Low acquisition costs per client thanks to high integration of product/model with the partner Share of “revolving clients” on total direct channel new clients >80% Leverage on cross-selling Increase of penetration of cards on the customer base Conversion of UCI Banca “optional” cards into revolving cards Increased share of wallet of clients (from 18% in 2002 to 31% in 2006) for personal loans Opening of 9 shops in selected high potential cities in January 2004 Other openings starting from 2005

31 IN SUMMARY: OUR BELIEFS … UniCredit will leverage its superior organisational model and business focus to gain market share on existing and new clients and become the preferred bank for Italian retail customers The Italian retail market will see growing competition for market share, key driver of future top line growth Double digit operating margin growth will be driven by consistent execution of a growth plan, leveraging skills acquired over the last 3-5 years at all levels of the organisation Clarima is a key contributor of this growth by focusing on consumer credit … … with a business model difficult to replicate