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Home , Banca Esperia, Mediobanca, Morgan Stanley, Unicredit

History and mission

Mediobanca overview

Founded after World War II by Banca Commerciale Italiana, and Banco di Roma, the three state- 1946 owned “ of national interest” Foundation Mission: to support the rebuilding of the Italian industry through supply of medium/long-term financing and advisory services to enterprises

1950s: supporting growth of leading Italian groups outside 1956: listing on stock market (the first banking group listed after the war) 1950s-70s Trustee business via Spafid (1951), followed by consumer credit with Compass (1960) and leasing with Selma Development (1970)

Key role in supporting Italian industry restructuring: MB became “house ” for major Italian industrials By mid-1970s MB’s equity investment portfolio included Generali (4.5%), (2.5%), Montedison (2.5%), Olivetti (5%), & C. (3.3%) and Fondiaria (10%) 1970s-80s 1998: MB privatisation and core shareholder’s agreement between banks (25%) and private enterprises (25%) set Restructuring of Italian up industry Industrial restructuring in late ’90s was followed by a boom of privatisation deals and IPOs, in which MB confirmed its leadership position. MB International, operating in international capital markets set up in 1990 1990s –early 00s Italian largest Residencial mortgages business started up with Micos (1992) privatisations Increase in size of equity investment portfolio (Generali 14%) business entered with (2001) and CMB (2003)

New management team (2003) and strategy refocused on banking activities Recent years CIB activities internationalized with the opening of branches in Madrid (2004), New York (2006), Madrid (2007), Diversifications (2007) and (2008) Creation of the third domestic operator in consumer lending with the acqusition of Linea (2007) started with Che Banca! (2008)

1 Key features

Mediobanca overview

Mediobanca is the leading investment bank in Italy with i unrivalled relations with Italian Qualified Valuable equity corporates, providing shareholder base investment portfolio them with high- quality advisory and i easy access to high net worth individuals and families, often Unique corporate Integrated and synergic with culture corporate business profitable Independent business model management team

Excellent asset Sound quality capital base High cost efficiency High free capital generation

2 Shareholder base

Mediobanca overview

No. syndicated shares % of share capital • The stability of No. syndicated shares % of share capital shareholder base is Group 70,982,659 8.7% today ensured by a Mediolanum 27,709,629 3.4% shareholders’ 13,984,357 1.7% agreement (46%) Sal.Oppenheim 13,984,357 1.7% • The shareholder base Total Group A 126,661,002 15.5% is broad and superior Fondiaria - Sai 31,447,510 3.8% in terms of quality, Italmobiliare 21,494,278 2.6% including many of the key players in both Ragione (Benetton) 17,738,123 2.2% the Italian and 16,381,963 2.0% European financial Pirelli & C. 15,003,207 1.8% and business FIN.PRIV. 13,657,350 1.7% communities 8,190,982 1.0% • Since 2003 effort has Soc.Acciai Bolzano SIAB 6,000,000 0.7% been put into ensuring Ferrero 5,450,000 0.7% that a larger share of Dorint 3,900,000 0.5% the bank’s capital is Pecci 3,893,000 0.5% held by institutional Sinpar 3,210,000 0.4% investors / free float Officine Meccaniche G. Cerutti 2,509,068 0.3% Oscar Zannoni 2,500,000 0.3% Others 1.8% Total Group B 165,451,356 20.2% Financière du Perguet (Bollorè group) 40,954,907 5.0% 25,386,159 3.1% Santusa Holding (Santander group) 15,081,628 1.8% Total Group C 81,422,694 9.9%

Total syndicated 373,535,052 45.6%

3 Corporate governance

Mediobanca overview

At an annual general meeting held on 28 October 2008, the shareholders of Mediobanca adopted an “innovative single board” model : the Articles of Association provide for a significant number of executives to be represented on the Board of Directors, and wide-ranging powers are granted to the Executive Committee (made up by a majority of exectuives) and the Chief Executive Officer.

2323 members members incl. incl. 5 5 Mediobanca Mediobanca managers managers 11 minority minority shareholders’ shareholders’ rep. rep.

Board of Directors ChairmanChairman Cesare Cesare GERONZI GERONZI CEOCEO Alberto Alberto NAGEL NAGEL GeneralGeneral Manager Manager Renato Renato PAGLIARO PAGLIARO

Executive Committee 99 members members incl. incl. 5 5 Mediobanca Mediobanca managers managers

Appointments Committee 66 members members incl. incl. 2 2 Mediobanca Mediobanca managers managers

4 Business model

Mediobanca overview

Mediobanca Group

Corporate & Principal Investing Retail & Private Banking

Lending EIP Consumer Credit

Capital Markets Merchant Banking Retail Banking

Advisory Private Banking

Special Opportunities

Large/mid corporates Retail

5 Group KPIs

Mediobanca overview

Mediobanca Group June 06 June 07 June 08PF*

Revenues (€ m) 1,602 1,777 2,078

Net profit (€ m) 858 953 1,013

RWA (€ bn) 40.3 50.1 55.1

Net equity (€ bn) 5.9 6.8 5.7

ROE 15% 15% 16%

RORWA 2.3% 2.1% 1.9%

Cost / income ratio 25% 24% 30%

Tier 1 ratio 14% 12% 10%

Total capital ratio 17% 16% 12%

Rating AA- AA- AA-

Financial year ends 30 June * June 08 pro-forma with Linea consolidated line by line 6 Divisional KPIs

Mediobanca overview

June 2008 PF* Corporate & Principal Retail & Group (12 months) Investment Banking Investing Private Banking

Income (€ m) 874 475 770 2,078 % breakdown 42% 23% 35% YoY -2% +25% +39% +17%

Net profit (€ m) 464 493 59 1,013 % breakdown 46% 49% 5% YoY -2% +36% -51% +6%

Loans (€ bn) 23 12 35 % breakdown 66% 34% YoY +12% +77% +29%

AUM (€ bn) 13.5 13.5 YoY -2% -2%

Cost/income 31% n.s. 49% 30%

Financial year ends 30 June * Pro-forma with Linea consolidated line by line 7 International presence

Mediobanca overview

Direct presence

Branch in Paris set up in 2004 France Lending and investment banking activities

Branch in Frankfurt set up in mid 2007 Lending and investment banking activities C Branch in Madrid set up in autumn 2007 I Spain B Lending and investment banking activities

Branch in new York set up in 2007 U.S. Brokerage activity

Branch in London set up in 2008 U.K. Capital market activity

P Principality and CMB: stake owned since 1989, fully owned since 2004 B Switzerland Leader player in private banking in , branch in Lugano

8 Dividend policy

Mediobanca overview

Dividend per share ( €), total dividend ( € m) and payout trend (%)

+12% 0.65 0.65 +21% 0.58

+20% 0.48 +120% 0.40 75%* 72%* 72%*

0.18 532 523 71% 473 58% 382 311

140

June 03 June 04 June 05 June 06 June 07 June 08

Payout Dividend per share

* On cashed net profit = net profit – earnings from equity-accounted cos. + dividends from equity-accounted cos.

9 2009/2011 business plan *: group mission

Mediobanca overview

European CIB player, leader in Italy with major footprint in core Europe Corporate & Investment More diversified income mix by domestic/international Banking Enlarged product offering

Release opportunities embedded in business model/market position Principal Enhance synergies with CIB Investing New asset classes

Leader in Italian consumer finance Retail & Recognized innovative retail player Private Banking Scaling up private banking

Healthy asset quality Capital Management Optimize capital structure Opportunistic acquisitions

* Approved on 7 March 2008

10 Corporate & Investment Banking: business model

Corporate & Investment Banking

June 2008 (12 months) Corporate & Investment banking

Lending Capital Markets Advisory Income (€ m) 874 Breakdown 42% Integrated customer approach YoY -2%

Net profit (€ m) 464 p Corporate lending p Equities p Origination Breakdown 46% p Structured finance p Fixed income p Advisory Products and p p p YoY -2% services Export finance ALM & treasury M&A p Leasing p Brokerage p Corporate restructuring Loans (€ bn) 23 Breakdown 66% YoY +12% Deals value € 110bn € 50bn € 160bn (last 2Y)

Deals no. Cost/income 31% (last 2Y) 73 54 103

CIB PI RPB

11 Mediobanca positioning

Corporate & Investment Banking

2004 2005 2006 2007 2008 M&A (announced deals) 2004 2005 2006 2007 2008 Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m)

Mediobanca 9,308 Lynch 69,578 Mediobanca 37,944 Citi 131,615 Mediobanca 43,348 7,576 JP Morgan 61,810 Rothschild 23,469 Merrill Lynch 126,946 Merrill Lynch 26,525 Citi 5,334 47,491 Goldman Sachs 18,368 Mediobanca 120,598 UBS 26,358 Rothschild 5,008 Mediobanca 38,515 17,546 105,217 Morgan Stanley 25,009 4,776 Lazard 37,599 16,289 JP Morgan 78,992 Goldman Sachs 22,951

2004 2005 2006 2007 2008 Equity issuance 2004 2005 2006 2007 2008 Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m)

Mediobanca 2,852 Mediobanca 5,048 Mediobanca 4,121 Mediobanca 1,843 Mediobanca 2,087 Morgan Stanley 2,266 JP Morgan 2,489 Morgan Stanley 2,802 Goldman Sachs 893 Goldman Sachs 1,143 Goldman Sachs 418 Morgan Stanley 1,931 Credit Suisse 1,991 Lehman Brothers 822 Credit Suisse 823 BMPS 286 Merrill Lynch 1,844 Goldman Sachs 1,757 Unicredit Group 549 Merrill Lynch 618 JP Morgan 286 1,707 Deutsche Bank 1,471 Intesa SanPaolo 513 Intesa SanPaolo 528

2004 2005 2006 2007 2008 Syndicated loans 2004 2005 2006 2007 2008 bookrunners Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m) Bank Volume (€ m)

Mediobanca 5,400 BNP Paribas/BNL 6,493 Mediobanca 5,628 Intesa SanPaolo 13,609 RBS 3,759 4,846 Mediobanca 5,305 3,430 UniCredit Group 9,058 Intesa SanPaolo 3,645 HVB/UBM 4,753 Deutsche Bank 4,489 RB of Scotland 2,881 Mediobanca 8,899 BNP Paribas 2,445 JP Morgan 4,069 RB of Scotland 3,927 HVB/UBM 2,845 UBS - BSCH 7,000 UniCredit Group 1,969 BNP Paribas/BNL 3,860 SanPaolo IMI 3,636 Banca Intesa 2,516 BNP Paribas 5,263 Mediobanca 1,551

CIB PI RPB Source: Thomson Financial, Dealogic All rankings are by Mediobanca fiscal year 12 Loan book

Corporate & Investment Banking

Group loan book amounted to € 35bn with NPLs/Loans = 0%

Around 65% of loan portfolio accounted for by corporate customers

Almost 50% of new loans is from non Italian corporate customers

Over 2/3 of loan book to investment-grade companies

Breakdown by sector... ..and rating

Financial B 7% Others 13% AA 25% 26% BB 20%

State & PA 2% A 7% 3% Non financial 1 57% BBB 40%

CIB PI RPB 1) Utilities, telecom, trasports, infrastructure, etc.

13 Principal Investing

Principal Investing

Release potential embedded in business model and market position Target

Recurring,Recurring, increasingincreasing contributioncontribution EPSEPS EIP (AG, RCS) TotalTotal returnreturn

Commitment:Commitment: upup toto €€ 300m 300m 20% Merchant Banking* MinorityMinority stakesstakes inin mid-corporatesmid-corporates 20%

Commitment:Commitment: upup toto €€ 500m 500m 25% Private Equity* BuyoutBuyout ofof “mid-large”“mid-large” corporates corporates 25%

Commitment:Commitment: upup toto €€ 300m 300m Special 15%15% Opportunities* SpecialSpecial situations,situations, realreal estate,estate, distresseddistressed assetsassets

CIB PI RPB * Earnings not included in BP targets

14 Equity Investment Portfolio

Principal Investing

Current EIP composition Share of profit by equity-acc.co (€ m) Net asset value (€ bn) • 14.1% Ass. Generali • 14.4% RCS Media 6.3 481 5.5 June 2008 (12 months) 5.0

Revenues (€ m) 5.9 475475 388 Breakdown 450 5.1 23%23% YoY 4.8 +25%+25% 311 359 Net profit (€ m) 493 Breakdown 49% YoY +36% 288

June 06 June 07 June 08 June 06 June 07 June 08

Assicurazioni Generali RCS Media Group

CIB PI RPB

15 Retail & Private banking

Retail & Private Banking

June 2008 (12 months)

Revenues (€ m) 770 Breakdown 37% Personal financial services Private banking YoY +39% Mediobanca

Net profit (€ m) 59 Breakdown 6% Compass 100% 100% CMB YoY -51% Consumer credit Off-shore Loans (€ bn) 12 Breakdown 34% YoY +77% CheBanca! 100% 48.5% Banca Esperia Retail banking On-shore AUM (€ bn) 13.5 YoY -2%

Cost/income 49%

CIB PI RPB

16 Consumer finance: poised to be market leader

Retail & Private Banking

Italian market: ranking Ranking: new loans by product

Consumer Agos+Ducato 8,405 13.9% Compass Linea finance Findomestic 6,285 10.4% COMPASS+ LINEA 5,111 8.4% Total new loans 10th 11th 3rd Deutsche Bank 5,077 8.4% Agos 4,979 8.2% Automotive 9th 13th 3rd Unicredit 4,332 7.2% Neos 3,668 6.1% Special purpose 4th 5th 3rd UBI 3,562 5.9% Ducato 3,426 5.7%

Consum.it 3,061 5.1% Personal loans 8th 10th 3rd Santander 3,055 5.1% Fiditalia 2,710 4.5% Credit cards 12th 9th 8th COMPASS 2,568 4.2% LINEA 2,543 4.2% Salary guaranteed 18th 7th 7th

CIB PI RPB Consumer Finance Source: Assofin, new loans, 12m ending June 08

17 Retail banking: new platform rationale

Retail & Private Banking

Attractive market Italian retail banking Changing scenario and customer approach

Strong Italian brand

MB key Free to launch innovative retail operations without overlaps advantages Skilled management

Achieve innovative and efficient retail distribution

MB goals Access to retail deposits to fund Group growth Diversify and stabilize Group revenue pool

Products and services distinguished by CheBanca!: ⇒⇒⇒ ⇒⇒⇒ distinctive transparency efficiency offering ⇒⇒⇒ high standardization ⇒⇒⇒ competitive price

CIB PI RPB Retail Banking

18 KPIs

Retail & Private Banking

By 2011 (3Y) ByBy 20132013 (5Y)(5Y)

Customers ~ 400K ~ 800K

Current accounts, deposits, ….and investment products Products mortgages, cards…

Online Online Distribution + 110 light branches + 220 light branches

Loans € 6bn € 11bn

Deposits € 13bn € 25bn

Revenues € 200m € 400m

PBT Breakeven > € 100m

CIB PI RPB Retail Banking

19 Private Banking

Retail & Private Banking

June 2008 (12 months) AUM (€ bn)

20.0 19.2 Income (€ m) 140 14.8 15.8 10. 0 12.1 % breakdown 7% 8.7 11.9 11.0 7.7 8.1 8.2 6.3 6.6 7.1 7.1 3Y CAGR +11% 5.5 3.7 2.5 Net profit (€ m) 57 % breakdown 6% J 02 J 03 J 04J 05 J 06 J 07 J 08 3Y CAGR +18% 100% Compagnie Monégasque 100% Banca Esperia

AUM (€ bn) 13.5 Income (€ m) Net profit (€ m) 3Y CAGR 8%

2,078 953 1013 Cost/income 49% 1,611 858 1,512

140 116 130 44 55 57

J 06 J 07 J 08 PF J 06 J 07 J 08 PF Mediobanca group Private banking* (100% CMB+48,5%BE)

CIB PI RPB Private Banking

20