UniCredit Group. Update Presentation to Fixed Income Investors

Transcription

1 UniCredit Group Update Presentation to Fixed Income Investors June 2010

2 DISCLAIMER This Presentation may contain written and oral forward-looking statements, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the company s control. There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Marina Natale, in her capacity as manager responsible for the preparation of the company s financial reports declares that the accounting information contained in this Presentation reflects the group s documented results, financial accounts and accounting records. None of the company s securities have been, nor will be, registered under the U.S. Securities Act of 1933, as amended or the securities laws of any state or other jurisdiction of the United States, and there is no intention to offer any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. When forming your opinion IN RELATION TO THE MATTERS DISCLOSED IN THIS PRESENTATION, you are advised to take into account the factors indicated above. 2

3 AGENDA Introduction to UCG 2009 Achievements 1Q 2010 Highlights Liquidity & Funding 3

4 UNICREDIT GROUP IS A TRULY EUROPEAN BANK UniCredit Group: Overview Market capitalisation (EUR bn) as of May 31, 2010 At a glance* HSBC SAN BNP LLOYDS BARC UBS ST.CHART CS UCG rd in Eurozone Strong local roots in 22 European countries Approx. 163,000** employees, 9.600** branches 185 Eur bn assets under management Loans and receivable with customers: 565 Eur bn Customers deposits and securities: 593 Eur bn 27.6 Eur bn operating income in 2009 Aa3 Stable/A Stable/A Negative long-term ratings (Moody's, S&P, Fitch) RBS 32.0 Leading position in core markets * As of Mar 2010 ** Including all employees and branches of subsidiaries consolidated proportionately Source: FY2009 and 1Q10 Financial Report Market share (1) Ranking Logo Austria 16.3% # 1 Emerging Europe 7.0% # 1 e.g. Italy 13.5% # 2 Germany 3.5% # 3 4 (1) Market shares in terms of loans as of Feb10. Source: UniCredit Research Network

5 A BROAD DIVERSIFICATION BY BUSINESS AND GEOGRAPHY Breakdown by Division, FY09 Total revenues Retail; 35.6% Private Banking; 2.8% AM; 2.7% CEE; 16.7% Operating profit Retail; 20.9% UniCredit Group: Overview Private Banking; 1.7% AM; 2.1% CEE; 19.7% Poland; 5.9% Poland; 5.8% CIB; 36.3% Breakdown by Country, FY09 Total revenues CEE Region; 21.9% Austria; 7.9% CIB; 49.8% Operating profit CEE Region; 27.8% Italy; 44.7% Austria; 9.2% Germany; 28.1% Italy; 36.1% Germany; 24.2% 5

6 SUCCESSFUL CONSOLIDATOR DOMESTICALLY AS WELL AS WITHIN WESTERN EUROPE AND CEE UniCredit Group: Overview Turnaround Consolidation Selective Growth Strengthening Privatization Federal Group S3 Central and Eastern Europe (CEE) 2009 Capital strengthening Asset Management Entities Pioneer Investments HVB BA-CA CAPITALIA Balance sheet deleveraging and derisking Reorganization of the Group s customer service model (segmentation) and the introduction of new incentive systems Integration of seven banks, centralization of IT systems and back office activity, start of international acquisitions Completion of process of creating internal divisions, continued expansion into international markets with HVB and BA-CA, strengthening of domestic markets with Capitalia One4C Project Efficiency gains: cost/income ratio reduced by 29.7 pp from 1994 to

7 2010: ONE4C WILL SIMPLIFY THE GROUP S CORPORATE STRUCTURE As is To be One 4 C project Holding Company UniCredit Spa Legal Entities UniCredit Spa Holding + Operative Bank After the merger, UniCredit SpA will serve the Italian market as a whole and all its customer segments: Households, dedicated to private individuals. SMEs, i.e. businesses with annual turnover of up to 50 Eur mln Corporate Banking, for businesses with annual turnover in excess of 50 Eur mln Private Banking, for clients with assets in excess of 500,000 Eur These changes will strengthen the Group s present divisional model and further increase customer satisfaction (more highly specialized skill-sets, greater simplicity and faster response times, and closer ties to the local communities) Debt investors will benefit from simplified legal structure commercial cash flows and debt exposure are netted within the same legal entity 7 Legal entities Changes vs. current situation Merger perimeter

8 CEE REGION: A UNIQUE FRANCHISE WITH A FULL COVERAGE Ranking, Employees and Branches by Country (1) UniCredit Group: Overview % Deposits mkt share # 1 Franchise in CEE ~76 bn deposits from customers ~3,900 branches ~72,000 employees Within top 5 in 9 Countries (1) 5.2% Czech Rep., #4 1,626 employees 69 branches 5.7% Slovakia, #5 1,286 employees 87 branches 6.9% Hungary, #7 1,982 employees 135 branches 3.2% Slovenia, #4 505 employees 25 branches 25.8% Croatia, #1 4,789 employees 146 branches 22.1% Bosnia, #2 1,869 employees 148 branches 12.5% Poland s Markets, #2 20,270 employees 1,030 branches 5.2% Serbia, #6 813 employees 72 branches Baltics, #7- #10 0.8% - 1.5% 200 employees 1.7% Russia, #8 7 branches 3,634 employees 123 branches 4.0% Ukraine, #5 7,964 employees 506 branches 5.6% Romania, #6 2,967 employees 253 branches Bulgaria, #1 15.0% 3,835 employees 243 branches Turkey, #6 8.3% 16,441 employees 889 branches 7.1% Kazakhstan, #5 4,340 employees Presence also in: 146 branches Kyrgyzstan & Azerbaijan An undisputed Leader, with strong market positioning: 6.5% market share in total assets, 6.7% in revenues as of Sep09 Leadership in AUM (~12 bn), Credit Cards (~8 mln), and leasing (2.1 bn new business in 2009) 8 (1) Ranking by total assets as of Dec09; Branches and FTEs at 100%

9 OVERALL UCG CEE MARKETS SHOULD DELIVER A SOUND PERFORMANCE IN 2010 Country risk 5Y USD CDS % Weight on loans UCG CEE GDP EU Growth(1) membership 2010 Poland 2.6 V % Czech 1.6 V 96 8% Slovakia 3.1 V 86 3% Slovenia 0.6 V - 3% Turkey % (2) (3) Hungary -0.1 V 245 5% Romania 0.4 V 261 4% Bulgaria -1.0 V 247 5% Croatia % Bosnia % Serbia % Russia % Kazakhstan % Ukraine % Estonia -1.3 V 110 Lithuania -3.0 V 272 1% Latvia -2.5 V 355 ~ 50% of UCG CEE Loan book in countries with positive macroeconomic outlook and low risk ~75% of CEE Banking System Revenue Pool Growth in will be driven by 3 Countries where UCG can enjoy excellent positioning, i.e. Russia, Turkey, Poland CEE Granular exposure to CEE, with favourable outlook and limited risk 9 (1) Macro forecast according to UniCredit CEE Quarterly 2Q 2010 (2) As of May (3) As of March 2010; % calculated on CEE Region loans, including PCV (3%) Source: UniCredit Research

10 AGENDA Introduction to UCG 2009 Achievements 1Q 2010 Highlights Liquidity & Funding 10

11 EXECUTIVE SUMMARY ON 2009 FINANCIALS 2009 Highlights Key pillars Diversification benefits 2009 deliveries 1.7 bn mln net profit in a challenging year Operating profit up 20.3% y/y, or +27.5% at constant FX and perimeter Cost control Operating costs -8.2% y/y, -5.3% at constant FX and perimeter Deleveraging Capital strength Loss Absorption Capacity Effective deleveraging: total assets -11.2% from Dec08; Tangible Assets / Tangible equity from 29x to 22x pro-forma for 4 bn capital increase announced in September 2009 and finalized in February 2010 Tier I at 8.63%, ~9.5% pro forma (Core Tier 1 ~8.47%) for 4 bn capital increase Underlying profitability providing strong loss absorption capacity, equal to over 1.9x FY09 cost of risk 2009 Results reflect diversification, strong focus on costs and deleveraging 11

12 FY2009 P&L 2009 Highlights mln FY09 FY08 y/y % change y/y % change at constant Fx and Perimeter Total Revenues 27,572 26, % 7.2% Operating Costs -15,324-16, % -5.3% Operating Profit 12,248 10, % 27.5% Net Write-downs of Loans -8,313-3, % 131.7% Other Non Operating Items (1) , % -38.5% Profit before Tax 3,300 5, % -30.9% Income tax for the period -1, % 71.2% Net Income for the Group pre PPA 1,959 4, % -46.2% Revenues up y/y with normalization of trading activity after 2008 market dislocation Strong cost control and streamlining: costs -8.2% y/y, ~9,500 FTEs Improved efficiency Solid operating profit growth supporting higher net write downs on loans in a context of macroeconomic deterioration Net Income for the Group 1,702 4, % -48.7% KPIs FY09 FY08 Δ y/y Cost/Income ratio 55.6% 62.1% -6.5 pp Diversification helped our profitability during the crisis Cost of risk (2) 142 bp 61 bp 81 bp 12 (1) Provisions for risk and charges, goodwill impairment, profit from investments and integration costs (2) Annualized

13 LOSS ABSORPTION CAPACITY: BUFFER PROVIDED BY OPERATING PROFIT UP Y/Y AND MUCH ABOVE COST OF RISK Loss Absorption Capacity Loss absorption capacity Western Europe Loss absorption capacity - Group 8, , Buffer in Western Europe well over 200 b.p Operating profit Buffer 2009 Operating profit Buffer Loss absorption capacity CEE Region Strong buffer at Group level, 62 bps higher y/y 3, Operating profit 544 Buffer Buffer in CEE Region at a very high level thanks to resilient profitability and increasing generic reserve 13 NOTE: buffer defined as ((operating income + generic provisions) / EoP Customer loans), indicating the capacity to absorb loan provisions without losses at pre-tax level

14 BALANCE SHEET STRUCTURE SIGNIFICANTLY IMPROVED THROUGHOUT 2009 Balance-Sheet Total Assets (bn) -11.2% Customer Loans as % of Total Assets Hedging instruments Assets excl. hedging instruments 1, Dec 08 Sept 09 Dec 09 More balanced funding structure, i.e. interbank exposure down by 70% to 29 bn 60.8% 59.0% 58.6% Dec 08 Sep 09 Dec 09 Higher weight of customer loans Capital Ratios Basel 2 (2) Leverage (2)(3) Core Tier 1 ratio Tier 1 ratio Total Capital ratio 11.23% 7.25% 6.58% 12.88% 9.49% 8.47% Dec 08 post cashes Dec 09 PF RWA -11.7% y/y at 452 bn, reflecting the strong focus on de-risking Dec 08 PF Sep 09 Dec 09 PF Leverage further improving to 21.6, quite a solid starting point to benefit of any return to growth (1) Customer deposits and debt securities 14 (2) Dec08 PF adjusted for Cashes; Dec09 PF adjusted for the capital increase announced in September 2009 and finalized on February 8, 2010 (3) Defined as Tangible Assets/ Tangible Equity as per IFRS (not reflecting netting agreements on derivatives). Considering netting agreements leverage as of Dec09 PF improves to 20.9

15 WITH SUCCESSFUL DE-LEVERAGING AND DE-RISKING IN MARKETS, PRESERVING PORTFOLIO QUALITY Markets de-risking Evolution of Markets (Product Line) RWA (bn) (1) Markets (Product Line) RWA by Risk Type (Dec09) - 31 % Q09 2Q09 3Q09 4Q09 ABS Book Value (bn) (2) ABS Breakdown by Rating % 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% AAA 45.5% AA 28.3% A BBB BB 10.6% 9.1% 3.5% Investment grade 93.5% B 0.9% CCC 1.0% Dec 07 Dec 08 Jun 09 Sep 09 Dec 09 Not Rated 1.1% 15 (1) 1Q10: 40.8 bn (2) ABS Book within Corporate & Investment Banking. 1Q10: 7.4 bn

16 AGENDA Introduction to UCG 2009 Achievements 1Q 2010 Highlights Liquidity & Funding 16

17 EXECUTIVE SUMMARY ON 1Q 2010 FINANCIALS 1Q10 Highlights Key pillars Diversification benefits 1Q10 Highlights 520 mln net profit in 1Q10 (+40.1% q/q and +16.5% y/y).operating profit up both q/q and y/y (+10.9% and +6.9% respectively) Revenues +5.6% q/q and +3.7% y/y, with resilient q/q trend of both net interest and net commissions and positive contribution from trading income Cost control Cost/income ratio -2.0 p.p. q/q to 57.0%; decrease also y/y (-1.3 p.p.) Continued focus on structural efficiency: FTEs down by further 2,683 in 1Q10 First positive signs on Asset quality Balance sheet stabilization Capital strength Loan provisions keep decreasing (-13.4% q/q); 127 bp cost of risk Asset quality deterioration slowing: gross impaired loans +4.3% q/q; gross NPLs +4.2% q/q Total assets back to moderate growth (+2.2% q/q; funded assets +1.6%) with loans stabilizing, higher deposits, lower net interbank exposure Core Tier I basically stable at 8.45% (-2 bp q/q) reflecting RWAs back to moderate growth (mainly due to FX) and dividend accrual 1Q10 Results confirm the strength of the Franchise 17

18 520 MLN NET PROFIT IN 1Q10 1Q10 Highlights mln 1Q10 q/q % change y/y % change Total Revenues 6, % 3.7% Operating Costs -3, % 1.5% Operating Profit 2, % 6.9% Net Write-downs of Loans -1, % 8.5% Other Non Operating Items (1) -93 n.m. n.m. Income tax for the period % 20.7% Revenues up 5.6% q/q with solid increase in fees & commissions and rebound of trading activity Continuous focus on cost control Improved efficiency and lower Net Write-downs of Loans Net income up both q/q and y/y Net Income for the Group pre PPA % 13.0% Net Income for the Group % 16.5% KPIs 1Q10 q/q % change y/y % change UCG well set to benefit from business opportunities Cost/Income ratio 57.0% -2.0 pp -1.3 pp Cost of risk (2) 127 bp -19 bp 18 bp 18 (1) Provisions for risk and charges, goodwill impairment, profit from investments and integration costs (2) Cost of risk is annualized and calculated on average loans

19 MAIN OPERATING TRENDS IN 1Q10 NET INTEREST + NET COMMISSIONS (mln) As % of average total assets annualized 6,496 6, % 2.63% 5, % 6,132 6, % 2.59% Net interest plus commissions stabilizing Operating Trends 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 OPERATING EXPENSES (mln) As % of average total assets annualized 3,823 3,867 3,831 3,878 3, % 1.58% 1.61% 1.65% 1.47% 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 Operating expenses reflecting FX effect; +2.0% growth translates in 1.2% q/q net of that NET WRITE-DOWNS OF LOANS (mln) As % of average total assets annualized 2,430 2,164 2,068 1,650 1, % 0.89% 0.64% 0.88% 0.76% 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 Further decline of net write-downs of loans 19

20 LOAN LOSS PROVISIONS AND COST OF RISK Cost Of Risk NET WRITE DOWNS OF LOANS (mln) COST OF RISK (1) bp 4Q09 1Q10 Rolling 12 months avg. 2,430 Group ,650 2,164 2,068 1,791 Retail CIB Q 09 2Q 09 3Q 09 4Q 09 1Q 10 CEE Region Q10 confirmed the trend of LLP, -13.4% q/q, coherently with the slow down in total gross impaired loans growth and notwithstanding a generalized increase of impaired loans coverage Cost of Risk 1Q10 at 127 bp, 37 bp below peak in 2Q09: Retail increased, in comparison to exceptionally positive 4Q09, with rise in coverage on already impaired loans in Small Business CIB declined due to lower LLP in Italy CEE drop driven by lower LLP in many countries (namely Russia, Czech Rep. and Croatia) and positive oneoff in Turkey 20 (1) Net write downs of loans / Average customer loans

21 ASSET QUALITY: CONFIRMED THE DECELERATION OF GROSS IMPAIRED LOANS ADDITION Asset Quality Annualized cost of risk per quarter, bp Impaired loans additions (1), bp Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 Cost of Risk, after reaching the peak in 2Q09, is decreasing notwithstanding a coverage substantially stable across the last few quarters Net new additions to impaired loans show a decelerating trend 21 (1) Delta of Gross Impaired Loans on Total Gross Loans in the quarter vis-à-vis prior quarter. Previous quarters re-stated for accounting adjustments and re-mapping in Poland, Romania and Croatia

22 BALANCE SHEET EVOLUTION IN 1Q10 AGAIN SOLID Customer Loans (bn) Customer Deposits (bn) Balance-Sheet Securities in Issue (bn) Dec 09 Mar 10 Dec 09 Mar 10 Dec 09 Mar 10 Customer loans stable at group level Business starting to pick up in some areas: Turkey, Romania, Croatia, mortgage lending in Italy Capital Ratios Basel 2 Customer deposits up, securities down Deposit trend driven by CIB and CEE Leverage (2)(3) Core Tier 1 ratio Tier 1 ratio Total Capital ratio 12.88% 9.49% 8.47% 12.78% 9.40% 8.45% Dec 09 PF (1) Mar10 Core Tier I almost stable (-2 bp) q/q with positive contribution from earnings offset by dividend accrual and higher RWAs Dec 09 PF Mar 10 Leverage further improving to 21.6, quite a solid starting point to benefit of any return to growth 22 (1) For the 4 bn capital increase announced on September 29, 2009 and finalized on February 8, 2010 (2) Dec09 PF adjusted for the capital increase announced in September 2009 and finalized in February, 2010 (3) Defined as Tangible Assets/ Tangible Equity as per IFRS (not reflecting netting agreements on derivatives)

23 AGENDA Introduction to UCG 2009 Achievements 1Q 2010 Highlights Liquidity & Funding 23

24 GROUP LIQUIDITY GOVERNANCE MODEL Funding Global Markets Regional Liquidity Centers acting as first level netting for each Legal Entity under their perimeter Regional Liquidity Center Italy UniCredit S.p.A. Holding Medium/long term lending short term cash pooling Regional Liquidity Center Germany (1) Regional Liquidity Center Austria/CEE Poland Group wide Finance function: Group Treasury second level netting center (obligation of first call for each Legal Entity) (2) and Group steering accessing the unsecured Money Market, Repos Market and derivatives, issuing CDs/CPs Group Strategic Funding coordinating and accessing the medium/long term debt markets Local Markets Coordinated liquidity management to optimize funding cost and market access 24 (1) Access to Global Markets for specific instruments, e.g. Jumbo Pfandbriefe (2) According to local laws/constrains and preserving access to local markets

25 UCG BALANCE SHEET STRUCTURE Key Ratios BALANCE SHEET - as of Mar10 (Eur bn) 949 Customer driven balance sheet Other Trading assets (1) Other Trading liabilities (1) Banking Book ~ 82% of Total Assets Fixed assets (2) M/L term assets BANKING BOOK Equity & Permanent Funds (3) M/L term liabilities Tangible Assets (923 bn) Tangible Equity (43 bn) = 21.6 S/T assets Customer deposits S/T liabilities Customer Loans (564 bn) Direct Funding (4) (593 bn) = 0.95 ASSETS LIABILITIES 25 (1) Includes mark-to-market derivatives (2) Fixed assets include assets 100,120,130 as per Bank of Italy s consolidated scheme (3) This item includes liabilities 110, 120a, 140, 170, 180, 190, 200, 210, 220 as per Bank of Italy s consolidated scheme (4) Customer deposits plus debt securities in issue (liabilities 20 and 30 as per Bank of Italy s consolidated scheme)

26 CENTRALLY MANAGED BY TWO GROUP-WIDE LIQUIDITY RATIOS UCG 1 month available liquidity (index figures, Jan09=100) (1) 250 Key Ratios Internal limit - Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Prudent net liquidity reserve strong inflows from market and captive customer base positive effect of Group cash pooling Group cash horizon constantly above 3M Huge counterbalancing capacity, with limited utilization ratio (50) Structural liquidity ratio Structural limit = Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 Structural liquidity ratio (3) well above limits Internal rule of 0.90 for maturities above 1y Level as of Mar10: 0.99 Anticipates forthcoming maturity profile: bn; bn; bn thanks to Group de-leveraging Successful 2009 M/L Term Funding Plan; 2010 on track (1) Sum of net liquidity inflow + counterbalancing capacity 26 (2) Assuming no roll-over of current outstanding wholesale debt (3) Calculated as ratio between the liabilities (cumulative sum above one year) and the assets (cumulative sum above one year)

27 STRONG FUNDING FROM CUSTOMERS Deposits + Bonds Deposits from Customers + Bonds Placed to the Network (Eur bn) Deposits from customers Bond to network Q08 1Q09 2Q09 3Q09 4Q09 1Q10 27

28 FUNDING MIX: OVERWEIGHT OF COVERED BONDS AND NETWORK DISTRIBUTION IN 2010 Funding Mix M-L/T Funding ABS/RMBS 37.5 bn 33.3 bn 33.9 bn 23 bn 3% 25% 12% 15% 31% Cov Bonds 11% 32% Network 18% 53% Private Placements Bank Capital Public (1) 28% 9% 9% 31% 10% 13% 2007 (2) (Planned) (3) 16% 10% 7% 50% 14% 6% 2010 Funding Plan continues to be centered on Group network distribution to satisfy the strong demand from private and retail customer base, helping to overcome the cyclical deficiency of wholesale markets Covered Bonds emerged from the crisis as preferred asset class. Thanks to Group capacity, market depth and pricing benefit Covered Bonds have strong strategic importance going forward Flexible use of other instruments according to market capacity 28 (1) Including term funding from supra-nationals (2) Capitalia included Pro-forma (3) Depending on development of market conditions, the funding mix is subject to possible changes

29 FOCUS ON UCG NAME AMONG THE BRANCH NETWORK AVOIDS WHOLESALE OVERSUPPLY Network (1) Placing Power: Bond Placement (Eur bn) M-L/T Funding (as of Mar10) UCI bonds volumes 3rd party bonds volumes Italian banks traditionally distribute bond products among their network. Up until 2007 UCG network has distributed primarily third parties bonds Starting from 4Q07 the network has progressively shifted the offering towards our own name based on the strong name recognition Network potential is significant also going forward based on forthcoming maturities of UCG bonds 29 (1) Referred to Italian network

30 OUR INVESTOR BASE SHOW CONTINUOUS SUPPORT FROM OUR HOME COUNTRIES Funding Fixed Income Investors' Regional Breakdown (1) ytd Asia; 0.4% Austria; 6.0% USA; 0.9% UK; 9.6% France; 4.7% Austria; 4.7% France; 5.4% UK; 2.0% Other Europe; 6.3% Asia; 0.3% Austria; 6.0% Other Europe; 8.0% France; 2.3% Other Europe; 8.2% Germany; 25.0% Germany; 30.0% Germany; 31.3% Italy; 40.2% Italy; 50.2% Italy; 58.4% Throughout the crisis, UCG has experienced a strong domestic support coming from home countries Combined contribution of Italy, Germany, Austria passed from 76% in 2008 to 89% in 1H10, confirming our high name recognition The new OBG platform established in 2009 allow us to approach a broader European investor base (demand from non core countries above 45%) 30 (1) Breakdown calculated on new issues of the year

31 AFTER HAVING ESTABLISHED A LIQUID SENIOR BENCHMARK CURVE WE ARE ALSO BUILDING A CURVE IN OBG UniCredit Benchmark Curves 300 M-L/T Funding lug-09 nov-10 apr-12 ago-13 dic-14 mag-16 set-17 feb-19 giu-20 ott-21 mar-23 OBG Senior Subordinated UCG has established a liquid senior benchmark curve over time, providing the market with a consistent reference to price its credit profile In addition to the well established Pfandbrief curve, the Group has put in place an OBG (Obbligazioni Bancarie Garantite) Programme with subsequent benchmark issues in 7 and 12 years. We intend to further build our covered bond curve 31

32 UCG OBG OFFER ACCESS TO A STABLE AND GRANULAR ITALIAN MORTGAGE COLLATERAL MARKET UCG OBG Programme Structure M-L/T Funding Italian Mortgage Market: residential mortgages / GDP % UniCredit S.p.A. S.p.A. Holding Holding Issue create senior obligation of UniCredit Segregated cover pool of eligible assets provide guarantee legal segregation of mortgage asset OBG OBG AAA / Aaa / AAA / AAA / AAA OBG SPV Italy UK Germany France Spain OBG Segregated Mortgage assets vs total Italy Assets Used in Securitizati ons 54% 17% 29% Total Italy: 64 bn Eur Assets used for OBG Program Assets not used in UCFIn Balance Sheet Summary of OBG Segregated Mortgage assets y Originator UniCredit Family Financing Bank S.p.A. Pool type Dynamic Substitute assets 1,315,143,549 Total outstanding cover pool 10,574,010,812 Total number of loans 94,357 Average loan amount 109,746 Max loan amount 3,978,267 Weighted average original LTV 69.23% Weighted average current LTV 64.20% Weighted average seasoning (months) (3 years) Weighted average time to maturity (months) (23 years) Fixed rate loans 59% Floating rate loans 33% Optional rate loans 8% 32

33 SUMMING UP UniCredit Group: a unique European franchise Strong local roots in 22 countries, with approx branches ~600 bn customers deposits and securities in issue Deleveraging effort and capital strength allow clear customer focus Stable framework on client and geographic diversification only selected strategic adjustments to be evaluated Efficient liquidity management, under strict metrics Diversification of sources with strong support from our customer base (network + covered bonds) allow smoothing of cyclical volatility UCG well set to cope with renewed market turmoil and new regulatory environment 33

34 CONTACTS UniCredit Group UniCredit SpA Group Finance/ CFO Investor Relations/CFO Head of Strategic Funding & Portfolio Philipp Waldstein Tel Collateralized Funding Luciano Chiarelli Tel Term Funding Andrea Laruccia Tel Investor Relations Laura Spotorno Tel Luciano Talpone Tel UniCredit SpA Via San Protaso, Milano Italy 34