UNICREDIT PROFILE CEE RETAIL CEE Identity & Communications Milan, September 204
UNICREDIT HAS ACHIEVED EXCELLENT RESULTS Turnaround Consolidation Selective Growth Organizational Simplification Business relaunch 993 998 200 2005 2007 200-203 204 Privatization Federal Group S3 risking and capital strengthening Balance Sheet de- Central and Eastern Europe (CEE) Asset Management Pioneer Restoring of a solid liquidity profile Reducing complexity and costs Strategic Plan 203-208 Strategic Plan HVB, BA-CA Capitalia ONE4C Reorganization of service model (segmentation) introduction of new incentive systems Integration of 7 Italian banks, centralization of IT and back office, start of international acquisitions Continued expansion into international markets with HVB and BA-CA, strengthening of domestic markets with Capitalia UniCredit is a rock solid commercial European Bank Increase in profitability Focus on risk culture Investment in growing business Increasing of multichannel capabilities Efficiency gains: cost/income ratio reduced by more than 8 pp from 994 to 203 2 This project led to the creation of three banks in Italy specializing in different customer segments: UniCredit Banca for the retail business, UniCredit Corporate Banking for the corporate business, and UniCredit Private Banking for the private banking business
AND TODAY IS A LEADING EUROPEAN BANKING GROUP Employees: more than 49,000 Branches: 8,772 2 Banking operations in 7 countries International network spanning: ~ 50 countries Global player in asset management: 85,5 bn in managed assets 3 Market leader in Central end Eastern Europe leveraging on the region's structural strengths 3 Data as at June 30, 204. FTE Full Time Equivalent = number of employees counted for the rate of presence. Figures include all employees of subsidiaries consolidated proportionately, such as Koç Financial Service Group employees. 2 Data as at June 30, 204. Figures include all branches of Koç Financial Services Group calculated at 00%. 3 Data as at June 30, 204.
UNICREDIT HAS AN INTERNATIONAL PROFILE WITH A STRONG EUROPEAN IDENTITY UniCredit Shareholder Structure (%) UniCredit Employees by Country 2 (%) Others CEE 34% % 33% Italy Retail Miscellaneous and Unidentified Investors* 24,3% Institutional Shareholders Austria 6% 3% 3% Germany Poland 48,3% Stable Shareholders 27,4% UniCredit Branches by Region 3 (%) Germany Poland Austria Others 0 3 4 6 Italy CEE 29 4 Including unidentified holdings, treasury shares and cashes Source: UniCredit analysis on Sodali data All data based on ordinary shares as at 3 March 204. 2 Data as at June 30, 204. FTE Full Time Equivalent = number of employees counted for the rate of presence. Figures include employees of Koç Financial Group calculated at 00%. 3 Data as at June 30, 204.
AND WITH WELL-BALANCED REVENUES Consolidated Total Revenues By Business Lines (%) By Region (%) 5 Data as at June 30, 204. These figures refer to Condensed Income Statement. 2 CIB: Corporate & Investment Banking Division which includes the former divisions Corporate Banking and MIB
THE GROUP CAN LEVERAGE ON ITS STRATEGIC POSITIONING NOT ONLY IN ONE OF EUROPE S WEALTHIEST AREAS GDP per capita Market share 2 Austria 4.9 No. 4% Germany 26.2 2.5% Italy 03.4 No. 2 2.6% 6 Source: Eurostat, UniCredit Research. Nominal GDP per capita as at December 3, 203 (EU27=00). 2 Market Share in terms of Total Customers Loans as at December 3, 203
BUT ALSO IN CEE Czech Republic 9% market share 06 branches #4 Poland 0.6% market share,000 branches #2 Baltics Leasing Slovakia 6.7% market share 78 branches #5 Russia.5% market share 07 branches #9 Hungary 6.4% market share 85 branches #6 Ukraine 3.5% market share 350 branches #6 Slovenia 6.4% market share 39 branches #5 Romania 7.6% market share 85 branches #4 Croatia 26.9% market share 46 branches # Bulgaria 4.7% market share 203 branches # Bosnia and Herzegovina 2.% market share 30 branches # Turkey 9.2% market share 968 branches #5 Serbia 8.8% market share 74 branches #3 Rep. Office in FYR Macedonia and Montenegro Azerbaijan 2% market share 6 branches #2 7 Ranking and market shares in Total Assets as of March 3, 204 (except for Bosnia and Herzegovina, Hungary and Romania as of Dec.3, 203); Number of branches - as of June 30, 204 Source: UniCredit
UNICREDIT CAN RELY ON A STRONG COMPETITIVE ADVANTAGE COMING FROM ITS BUSINESS MODEL FOCUS ON CUSTOMER PROXIMITY Customer proximity Higher responsibility of the Countries/ local Banks, through increased autonomy and decision levers, in order to guarantee increased proximity to the client and faster decision processes - direct management of marketing activities and of certain businesses Global functions specialization Maintaining the so-called global Divisions / functions [Corporate Investment Banking (CIB)/ Global Banking Services (GBS)] which allow the Group to maintain and increase a competitive advantage in terms of costs and competencies, while envisaging the refocusing of CIB Division on selected customers with a strong demand for Investment Banking products Holding global coordination Confirmation of the steering, coordination and control role of the Holding Company, in particular through a focus on internal control topics, a supervision of Group key processes and a global coordination of some functions (Planning, Finance & Administration, Risk Management and Legal & Compliance 8
UNICREDIT MAINTAINS ITS LEADERSHIP POSITION IN CEE Data as of FY203 Total Assets () EUR bn Net Profit (2) EUR mn Number of Branches Countries of presence (3) CEE, % share in Group revenues UniCredit 42 6,945,299 3,927 3,48 5 9 29 (4) RBI 8 892 3,00 9 83 Erste 79 872,86 6 56 (5) SocGen 76 763 2,58 5 7 KBC 56 692 77 4 30 ISP 38-99,268 OTP 35 26,434 9 n.m. 9 Note: () 00% of total assets for controlled companies (stake > 50%) and pro rata for non- controlled companies (stake < 50%), except for OTP; (2) After tax and before minorities; (3) Including direct and indirect presence in the 25 CEE countries, excluding representative offices; (4) Results of RBI exclude group corporate, markets and corporate center segments; (5) Including Albania as of FY202. SOURCE: UniCredit CEE Strategic Analysis
CEE RETAIL - THE FOOTPRINT UniCredit CEE bank Ukraine 3 (Market share (2.8%; 7.4%) Deposits; Market share Loans) Czech. Rep. (3.7%; 3.6%) Slovakia (3%; 5.%) Hungary (4.6%; 4.4%) Slovenia (3.3%; 9%) Croatia (24.8%; 24.3%) Russia (0.4%;.4%) CEE RETAIL Over 24,500 Employees 4 ~ 28 bn Loans to Retail customers 2 ~ 24 bn Deposits from Retail customers 2 Bosnia and Herzegovina (23.7%; 25.3%) Serbia (3.4%; 5.9%) Romania 5 (3.8%; 5.7%) Bulgaria 5 (.4%; 4,4%) Turkey (8%;0.2%) 0 Source: UC CEE Strategic Analysis, June 204. Market share data include loans to and deposits from households and non-profit institutions servicing households. Romania and Bulgaria including UCFIN. Turkey pro quota. 2 Data as of June 204 at constant FX Budget 4 Rate. Turkey pro quota. 3 Ukraine refers to Ukrsotsbank and UC Ukraine 4 Total FTEs as of June 204, Turkey 00%. 5 Loans and Deposit volumes refer to Mass, Affluent and Small Business client segment.
CEE RETAIL - REVENUES BREAKDOWN BY COUNTRY AND SUBSEGMENT Revenues Year-to-Date June 204, EUR mln at constant budget rates MM AFF SB Total + + = Russia 09 2 33 54 Czk & Skk* 38 23 20 82 Croatia 72 47 30 48 Turkey** 73 3 5 255 Hungary 34 3 2 69 Bulgaria 49 2 34 03 Romania 4 4 24 70 Slovenia* 8 5 3 Serbia 9 3 4 6 Ukraine 43 20 64 Bosnia UCI 28 6 4 38 Bosnia NBB 7 0 8 Total 5 6 348.020 Source: Segment Reports June 204. Where revenues of AFF and SB are not available (equal to 0) are conventionally attributed to MM. Notes: ** TK pro-quota, revenues in other client category related to Credit Card business have been allocated to MM. *CZ,SK,SI other clients are allocated also to MM: As of 0.0.204 banks merged in UC Czech Republic and Slovakia.
CEE RETAIL - THE STRATEGY Simplicity and Innovation in building sustainable business with our present and prospective customers. CUSTOMERS: Customer at the centre of our activity is primary key for business sustainability. Leveraging on new trends in Retail business, UniCredit reshapes the service model going in the direction of an efficient and professional "industrialized" and "standardized" business model. Simplicity, transparency and time to market delivery to gain leadership in servicing targeted client segments. Development of non traditional offers to increase customers engagement and satisfaction CHANNELS AND CRM: Technological innovations to better identify target client groups and needs in order to define appropriate strategy to supply solutions in terms of products, services, pricing and communication. Set of initiatives that represent the starting point to turn UniCredit multichannel network into a sustainable ecosystem in the new distribution mix. Sales and communication solutions to: enlarge bank proximity, provide full range of contact and service delivery opportunities to present and prospective customers, Re-define branch coverage and business model. Improve banks efficiency and effectiveness, leveraging on CRM platform, to enable the development of high value propositions and the achievement of market share growth targets. Deposit growth to deepen the customer relationship and to support balanced financing to business. 2
CEE DIVISION - CONTACTS CEE CIB CEE CIB Head Gianfranco Bisagni UniCredit Bank Austria AG Schottengasse 6-8 00 Wien Austria Tel. +43(0)5 05 05 5733/+43(0)5 05 05 570 CEE RETAIL CEE Retail Head Mauro Maschio UniCredit Bank Austria AG Julius Tandler-Platz, 3 090 Vienna Austria Tel. +43(0)5 05 05 53302/+43(0)5 05 05 53545 CEE PRIVATE BANKING CEE CIB Head Jan Tronicek UniCredit Bank Austria AG Renngasse, 3 090 Vienna Austria Tel. +43(0)5 05 05 5253 3