SPECIAL FOCUS 2012 Report and Accounts and Report 2012

2003-2013

10 years working for solidarity.

to communities. to Our commitment commitment Our

Our History. Our Future.

www.unicreditfoundation.org

April 2013 April

Printed: CPZ S.p.A. (Bergamo) (Bergamo) S.p.A. CPZ Printed:

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UniCredit Foundation Registered office: Milan, Via San Protaso, 3 Registration in the juridical persons register of the Prefecture of Milan under number 414, on May 21, 2003 Tax Code: 97342960156 2012 Report and Accounts FOTO Foundation Bodies

The Board of Directors (at December 31, 2012)

Maurizio Carrara Chairman

Maria Cristina Molinari Vice-chairman Paolo Cornetta

Maurizio Beretta Directors Alberto Fontana Enrico Gava Francesco Giacomin Elena Patrizia Goitini Klaus Priverschek

Lorenzo Lampiano Secretary

The Board of Auditors

Giorgio Loli Chairman

Elisabetta Magistretti Standing Auditors Michele Paolillo

UniCredit Foundation · 2012 Report and Accounts 3

Index

Annual Report 7 Letter from the Chairman 8 Highlights 9 Projects 11 A center of expertise on Non-Profit 60

Accounts as at December 31, 2012 65 Balance Sheet as at December 31, 2012 66 Report on Operations for Financial Year 2012 67 Notes to the Accounts for Financial Year 2012 68 Annexes 79

Report of the Board of Auditors 83

Back cover

The Foundation celebrates its tenth Anniversary 2 Letter from the CEO 2 From Africa to Eastern Europe, the story of an Italian model 3 Bertazzoni, the first chairman of the Foundation: “Philanthropy is good for business” 4 Gift Matching Program: Multiplying solidarity 5

UniCredit Foundation · 2012 Report and Accounts 5

Annual Report

Letter from the Chairman 8 Highlights 9 Projects 11 Social Entrepreneurship and Social Innovation 11 Advocacy & Social Inclusion 29 Employee Community Involvement 53 Other Initiatives 58

A center of expertise on Non-Profit 60

UniCredit Foundation · 2012 Report and Accounts 7 Annual Report

Letter from the Chairman

Development and solidarity go hand in hand

Dear reader,

We leave a difficult year behind us that brought us face to great economic upheaval - we decided to work to promote face with social emergencies that we perhaps thought were networking: with our partners, with public authorities and, a thing of the past, but that have instead re-emerged, with in some cases, with private sector organizations. In this more urgency than ever. My thoughts turn in particular to regard, the Sefor II projects - Social Entrepreneurship issues linked to the support of elderly and care-dependent Forum in Croatia and Social Enterprise: creating economic people, or the subject of jobs and youth employment. Areas opportunities in marginalized communities in Romania, in which the Foundation is trialling new, innovative methods represent two important benchmarks at international level. of intervention such as the seed grant model, part of the We went in search of talent and innovative ideas, as Alzheimer Cafés development program in Italy. demonstrated by the recognition of best It is clear however you look at it that practice at European level achieved we have reached a crucial moment in by the Social Innovation for Naples history: the old welfare system, largely International call for tenders. And in sustained by public donations, is proving doing this we placed particular emphasis unsustainable. In other words, we are at on social entrepreneurship because, a crossroads, forcing us to ask ourselves as increasingly often observed by the important questions. President of the European Commission, What kind of welfare state will Europe José Manuel Barroso, “Social business be able to provide for its 500 million can be indeed a very powerful agenda citizens? And in this new structure, what for change. To deliver better outcomes role will a Foundation like ours play, for the common good. To show that it is with the increasing need to network with possible to do things more responsibly other social organizations? It is with these two questions and more fairly, whilst still being a success on the market”. in mind that UniCredit Foundation decided to re-orientate Tender procedures and social awards have been useful tools its range of activities and initiatives, which have involved to help identify and reward projects that ensure concrete thousands of UniCredit employees across the 22 countries changes that outlive the Foundation’s activities, not only from in which the Group operates, thanks in particular to two a social perspective, but also in terms of sustainability and programs running in parallel to the various projects launched, financial autonomy. continued or completed in 2012: the historical “Gift Matching Program” and the more recent “Your Choice, Your Project” To learn more about the projects and initiatives we are initiative. supporting, and to see the results of our achievements, I In this new context, our goal could no longer simply be to invite you to read the following pages, where you will find patch up the odd hole in a socio-economic fabric that was details, facts and figures, and photographs that tell the story becoming weaker by the day. To become more efficient, more of UniCredit Foundation as an organization, today and in the effective and thus more widely recognized as a social entity, future. we began to look at things from a different perspective, in the belief that the best way to deal with emergencies Enjoy reading! is to prevent them. And to achieve this - in addition to the resources we have been able to gather even in a time of

Maurizio Carrara Chairman of UniCredit Foundation

8 2012 Report and Accounts · UniCredit Foundation Highlights

Overall allocation of funds (%)

11

49 40

General administration costs Projects and feasibility studies Activities involving UniCredit employees (ECI Employee Community Involvement

The allocation of funds for 2012 shows that 40% of the resources were used for the design, implementation and management of UniCredit Foundation projects in Central and Eastern Europe, Austria, Germany and Italy. A total of 49% was allocated to activities that the Foundation proposed to UniCredit employees through the Employee Community Involvement initiatives. Lastly, 11% of the funds were used to cover general administration costs.

Notes & Key MIGRATIONS: this symbol identifies projects launched as part of the Migrations program, designed to tackle social problems linked to migration across various countries.

YOUR CHOICE, YOUR PROJECT: projects accompanied by this symbol are those that UniCredit employees voted for as part of their involvement in the Foundation’s activities. The winning projects were assigned an additional grant by the Foundation.

UniCredit Foundation · 2012 Report and Accounts 9

Projects

Social Entrepreneurship and Social Innovation

Now let’s do business

ould the third sector be the keystone success on the market. And to become a Cfor an entire region’s economy? real engine of growth in the EU. Europe According to the Washington Post, there must not only be part of these changes. is no longer any doubt - the answer Europe should be in the lead.” is yes. The American daily recently Which is to say, companies that create declared this to be the case, placing social utility through the production and great emphasis on a recently published exchange of goods and services are study carried out by the Montgomery now fully part of the official European Nonprofit alliance in which the case economy development program. Indeed, of Montgomery County, Maryland current figures show that 15% of was analyzed. Results showed that in the European economy is defined as an area with a high concentration of “social”, and employs over 14 million social enterprises, overall economic workers, accounting for 7.6% of total growth was positive, as a direct result employment. Furthermore, one in every of non-profit activities. An isolated four businesses created in Europe is a case? Absolutely not. Indeed, the social enterprise; one in three in Finland, opposite is true: in October 2011, the Belgium and France. European Commission launched its first Therefore, supporting highly innovative Social Business Initiative, followed in social entrepreneurship was a strategic September 2012 by the inclusion of objective for the programs endorsed social enterprise in the European Union’s by UniCredit Foundation in 2012, Single Market Act II. In the words of the and emphasis on this will most likely President of the European Commission, increase in years to come. In this José Manuel Barroso, “Social business instance, as for the Advocacy & Social can be indeed a very powerful agenda Inclusion projects supported by the for change. To deliver better outcomes Foundation, the goal was to stimulate for the common good. To show that it is the non-profit partners of the Foundation possible to do things more responsibly to build networks with the more dynamic and more fairly, whilst still being a organizations in local communities.

UniCredit Foundation · 2012 Report and Accounts 11 Annual Report

Projects

Social Entrepreneurship and Social Innovation

UniCredit Foundation and Bank Austria are promoters of the Social Innovation Award 2013, taking as their model the 2011 Social Innovation for Naples Competition, considered one of the best practices on the European level. The competitive framework seeks to elicit innovative proposals responding to a social challenge identified in Austria some part of the Austrian territory. This challenge will be defined within the context of local needs and available resources by a group of experts working together with the main stakeholders in the area in question. Bank Austria will coordinate the launch of a public request for proposals addressed to institutions, NGOs and individuals social innovation award 2013 residing in Austria. These entities will be able to present proposals-taking the form of ideas, approaches or individual Country: Austria projects-for resolving the identified challenge. The request for proposals will be published on the dedicated website Duration: beginning in 2013 http://sozialpreis.bankaustria.at, on social media, and in the national and regional press. The solutions elicited across the entire national territory will be examined by the group of experts, with the participation of UniCredit Foundation and the involvement of SOS Children’s Village and Caritas Austria, in order to choose a single proposal.

UniCredit Foundation launched the “Social Business Award” in October 2012, with a view to providing support to third-sector businesses and organizations in Slovenia who want to improve their social impact. The degree of social innovation demonstrated by the Slovenia projects is a decisive element in the evaluation process, along with the capacity to foster new forms of interaction and collaboration between different stakeholders. Overall, these activities are designed to respond more appropriately to social emergencies that need to be addressed (poverty and the social exclusion of individuals or families living in Social Inclusion Award 2012 severely deprived circumstances) and to encourage active participation among citizens. There are plans to launch a similar social business award in Bulgaria and Hungary in the near future.

Country: Slovenia

Duration: 18 months (October 2012-March 2014)

12 2012 Report and Accounts · UniCredit Foundation The initiative, launched in collaboration with the local partner Mozaik (charged with providing supervision and advice on projects), is based around two calls for tenders: the first of these targets non- profit workers engaged in aiding disadvantaged young people, and the second is designed to support social Bosnia- entrepreneurship. Six organizations were selected from the first call for tenders (Association of Drama Artists Altteatar; Herzegovina Step by Step association; Help to the children of Balkans association; Center for Children, Youth and Families; Open Schools Interactive association and Associazione Medica) and five for the second (CA Orhideja; ECON Foundation; Social Inclusion and Social Malinar Agricultural Cooperative; Association of Distrofic Business - Call for Tenders Doboj; and Insieme Agricultural Cooperative). All those selected received a grant and launched projects; eight of Country: Bosnia-Herzegovina these are currently being set up (including four in the final stage), while three have already been concluded. Duration: 17 months (March 2012-July 2013)

Partner: Mozaik-Community Development Foundation

UniCredit Foundation · 2012 Report and Accounts 13 Annual Report

Projects

Social Entrepreneurship and Social Innovation

SEFOR II comes in the wake of the Social Entrepreneurship Forum, initiative, which was launched in 2010 and coordinated by the NGO Slap. Two major results have been achieved over the last few years: the development of networking activity between the five regional centers dedicated to supporting social enterprise, and the Croatia provision of training and capacity building for 15 mentors, 40 NGOs and 40 social entrepreneurs. In this second phase, the Social Entrepreneurship Forum continues to work to strengthen regional centers: Zagreb, Osijek, Rijeka, Split, Cˇakovec (with the addition of another in Dalmatia), providing advice and training. So far, 89 active and prospective social SEFOR II entrepreneurs have benefited from the services offered by Social Entrepreneurship Forum these centers, while 35 specialist workshops have been held. 7 themed forums provided information and advice on social Country: Croatia entrepreneurial development strategy. The network of centers is currently in its registration process, along with CEDRA.hr, the cluster group for eco-social economy and innovation. Duration: 24 months (September To support the strategy, a feasibility study will be performed, 2011- August 2013) to investigate different forms of access to credit and to evaluate the best financial tools for social enterprises. Partner: SLAP-Association for Creative Development

14 2012 Report and Accounts · UniCredit Foundation The lack of facilities for infant care has been a problem in Italy for many years. For this reason, from April 2011 UniCredit Foundation published a call for tenders in collaboration with the Aiutare i bambini Foundation, aimed at supporting the opening and development of daycare centers run by third-sector organizations. The positive results Italy achieved led the Foundation to repeat the initiative for a second time in 2012, this time with a view to establishing a community nursery, to meet the demand for childcare services both from the Bank’s employees and citizens living near UniCredit premises. The idea of community nurseries replaces that of company nurseries, distinguished Community Nursery Schools by their frame of reference, in that the selection process will evaluate projects according to their sustainability Country: Italy over time, through partnerships and agreements with local public and private bodies and self-financing initiatives. The uration 21 months selection of beneficiaries is still underway, and will depend on D : various criteria: the degree to which a potential beneficiary (March 2012-December 2013) will enhance the existing services of the proposed project, the involvement of non-profit organizations and proportion Partner: Aiutare i bambini non-profit of voluntary work (at least 20 hours per week), the demand Foundation within the local area and the ability to accommodate children from difficult circumstances (at least 30% of places).

UniCredit Foundation · 2012 Report and Accounts 15 Annual Report

Projects

Social Entrepreneurship and Social Innovation

Social cohesion strategies for young people”: this was the theme of the 2012 edition of the Card E, call for tenders, supported by funds raised from the UniCredit Classic Card E, a credit card which, at no additional cost to the holder, gives the customer the opportunity to donate a percentage of the amount they spend to aid initiatives. Italy The initiative involves two main areas, both focused on supporting young people in vulnerable social and economic circumstances: labor inclusion and support for social entrepreneurship. The 266 projects presented were selected by an Evaluation Committee whose members come from both within and outside UniCredit. This committee identified the seven best UniCredit Card E 2012 call projects, one for each UniCredit region. In October, through the for tenders: Social cohesion “Your Choice, Your Project - Italy” initiative, UniCredit employees strategies for young people in Italy were able to vote for the project they judged the best from the following winning respondents to the call for tenders: • Le Soleil social cooperative - Project: “[email protected]”, Turin: offering 16 young inmates of the Ferrante Aporti Penal Institute a place in a chocolate workshop. • Il Carro business cooperative - Project: “San Tarcisio”, Paullo ountry (MI): 7 apprenticeships for vulnerable young people, aimed at C : Italy providing employment within the bar in “San Tarcisio” public park in Paullo. Region: Turin, Paullo (MI), Castelfranco • N.O.I. social cooperative - Project: “Jump into job”, Castelfranco Veneto (TV), Reggio Emilia, Veneto (TV): creation of a social enterprise with 10 young Tursi (MT), Oristano and disabled people. Messina • Madre Teresa social cooperative - Project: “Mani in pasta”, Reggio Emilia: labor inclusion scheme for 5 young women with uration children living in difficult circumstances, in an artisan bakery D : 12 months (January 2013 - (this project won the employee vote, and was awarded the December 2013) bonus prize. • Exodus non-profit - Project: “A bridge for life”, Tursi (MT): Partner: Le Soleil social cooperative, establishment of a bag-making workshop for the labor inclusion Il Carro business of ten young former drug addicts or former alcoholics who have cooperative, just left rehabilitation programs, within the Exodus community. N.O.I. social cooperative, • Studio e Progetto 2 non-profit social cooperative - Project: Madre Teresa social “Impronte sociali”, Oristano: provision of vouchers designed to enable a business start-up project, with two teams (each cooperative, made up of 5 young people), one of which will win the contest Exodus non-profit, Studio sponsored by the proposer, designed to promote “good ideas” and Progetto 2 non-profit in youth entrepreneurship. social cooperative, • Azione Sociale social business cooperative - Project: “The best Azione sociale social lunch”, Messina: activities designed to support employment business cooperative in the catering sector, aimed at 10 young people with mental health problems.

16 2012 Report and Accounts · UniCredit Foundation Recognized as an example of best practice at European level in terms of social innovation, the project has united and mobilized resources, expertise and a range of very different organizations. The trial took place in Naples, a city which exemplifies the incapacity of the State- market partnership to cope with the most serious social Italy emergencies. In collaboration with Project Ahead, UniCredit Foundation and Euclid Network launched an international call for tenders, with a view to selecting the best ideas to respond to six “challenges” within the Naples area: • to transform goods confiscated from the Camorra mafia Social Innovation for Naples into a social enterprise producing economic and social benefits for the community; Country: Italy • to open an archaeological site to the public and manage it sustainably; Region: Campania • to create a new management model for a voluntary organization working in deprived areas; artner Euclid Network • to launch an initiative to re-introduce children who have P :  dropped out of school into education; • to establish a social inclusion program for the Roma population of Scampia; • to promote an innovative methodology for recovery of unused goods and waste. The following successful respondents to the call for tenders were chosen by an international jury from over 130 proposals: Margherita Cittadino (Italy), Sara Ceraso (Italy), Melene Jonker with Jonas Piet and Vincenzo Di Maria (Netherlands), Mirjana Tomic and Dejana Popovic (Serbia), Barbara Pierro (Chi rom…e chi no Association, Italy), Domenico Zungri (Immersive Labs, Italy) and Jan Herder (USA). Over the course of 2012, all winners were given the opportunity to develop their business plans alongside various Neapolitan associations. To date, however, only one development plan has received the green light from the jury: that proposed by the Chi rom…e chi no Association.

UniCredit Foundation · 2012 Report and Accounts 17 Annual Report

Projects

Social Entrepreneurship and Social Innovation

Six ideas, six social innovators, one laboratory. These numbers represent the outcome of the social innovation call for tenders, published in the wake of the Social Innovation Camp which was supported by the Foundation as part of its commitment to these issues, after the success of the 2011 Naples Social Innovation Italy Competition. The six social startups, whose ideas were selected by a jury, and with the supervision of the Milan Hub (a leading promoter of advanced initiatives with significant social, cultural and environmental impact) were given the opportunity to work with design computing and digital experts on the technical implementation of their Social Innovation Camp Milan ideas. The initiative also served to raise awareness among citizens, third-sector workers and public administration Country: Italy representatives of the importance of innovation in response to current social challenges, and the creation of networks Region: Lombardy between different organizations and sectors.

Duration: June 2012

Partner: The Hub Milano

18 2012 Report and Accounts · UniCredit Foundation The three projects set up by associations belonging to the Libera - Associazioni, numeri, lotte contro le mafie network continued in 2012, supported by UniCredit Leasing - Italia, the Group’s legal body, with organizational support from UniCredit Foundation. The organizations selected promote projects which unite legality, justice Italy and integration, using property recovered from criminal organizations. • Coltivare la libertà (Rinascita non-profit organization, Moncalvo - Asti) is an initiative which supports women struggling with addiction problems, in a facility set up within a confiscated villa; project activities are focused UniCredit Leasing for goods on restoring the building and training in rehabilitative confiscated from the mafia therapies. When fully operational, the community will host 14 women who will run individually-tailored rehabilitation programs featuring therapeutic, educational and occupational elements, carried out both within and outside the facility; • Vestiamo la libertà (Jerry Masslo Association - Castel Country: Italy Volturno - Caserta), aimed at the development of a “social tailor” that employs immigrant women rescued from Region: Moncalvo (AT), Castel Volturno trafficking and enrolled on rehabilitation programs. The (CE), Naro (AG) project provides for the refitting of the working space as well as a plan for promoting the product (a clothing line made from African fabrics). The women engaged Partner: Rinascita Non-profit in the dressmaking work have attended an Italian Association, Jerry Essan language course, as well as specific training in the use of Masslo Association, Libera- machinery and in business management; associazioni, nomi e numeri • Restituiamo ai giovani le terre liberate (Libera, in contro le mafie collaboration with AGESCI and Caritas Agrigento - Naro) facilitated the restoration of a confiscated building, to be used as a meeting place for scouts and youth groups. The center will also be home to a cooperative that is currently being set up for the promotion and marketing of “short supply chain” agricultural products. The three projects were also involved in the “Your Choice, Your Project - UniCredit Leasing Italia” initiative, through which employees from the legal entity voted for their preferred project, with the overall favorite receiving an additional prize. The “Vestiamo la Libertà” project from the Jerry Foundation was the winner of this prize.

UniCredit Foundation · 2012 Report and Accounts 19 Annual Report

Projects

Social Entrepreneurship and Social Innovation

UniCredit Foundation upholds its commitment to the recovery and reuse of goods confiscated from organized crime for social benefit. The first project will be developed within the Villaggio della legalità e della corresponsabilità Serafino Famà (Serafino Famà village of legality and responsibility), a site Italy named after a lawyer killed by the mafia. The village was opened on July 18, 2011 in Borgo Sabotino (municipality of Latina) by Don Luigi Ciotti, founder of the anti-mafia organization Libera, but was destroyed by vandalism just two months later. The project’s objective is to set up a national center to provide training on issues relating Villaggio della legalità e della to law, justice and rights within the Village’s ‘House of corresponsabilità Serafino Famà Associations’, in which seminars and meetings will be AND Cascina Carla e Bruno Caccia held with judges, journalists, social workers, academics and families of mafia victims. The second project will take place at the Caccia Country: Italy farmstead in San Sebastiano Po, in Turin province. It was confiscated from the Belfiore family, affiliated with Region: Borgo Sabotino (LT); the ‘Ndrangheta criminal organization and responsible for San Sebastiano Po (TO) the murder of prosecutor Bruno Caccia in 1983. The social cooperative Acmos will manage the initiative, Duration: 12 months which proposes to: • Consolidate the honey production chain, which already (January-December 2013) generates around a ton of honey annually, and is the first Libera Terra product originating from confiscated Partner: Libera, Associazioni nomi property in the north of Italy. e numeri contro le mafie; • Build a teaching farm. Acmos social cooperative • Develop education projects on issues of legality. These include a museum dedicated to Bruno Caccia and legal landmarks (with a map of all land confiscated from the mafia in Italy and fact sheets on each of these), a law library, an installation on the mafia and a museum of apiculture. • Welcome associations and informal groups interested in activities such as art, dance, painting and craft workshops, and provide play areas for children.

20 2012 Report and Accounts · UniCredit Foundation More than 80 non-profit organizations submitted applications to the social enterprise competition established by NESsT in Romania, which sees candidates competing in a social enterprise assistance program, divided into four main stages: organizational fine-tuning, pre-feasibility, feasibility, and business planning. The main areas covered Romania by the project were labor inclusion and production of sustainable income, with special attention paid to the most disadvantaged groups (young people at risk of marginalization, people with disabilities, Roma communities, homeless people, women and families with low income, and small producers). The 20 non-profit organizations that Social enterprise: creating passed the pre-feasibility examination went on to complete economic opportunities in a full feasibility study. NESsT provides assistance on legal, marginalized communities tax, finance, management and marketing issues. The subsequent phase of the project was designed to provide support in the preparation of a real, concrete business Country: Romania plan. The 15 business plans selected were then examined by a committee, made up of NESsT staff, business Duration: 12 months advisors and UniCredit Tiriac Bank volunteers. At the end (May 2012-April 2013) of this process, the six competition winners were chosen. UniCredit Foundation support is contributing to the startup Partner: NESsT of two social enterprises (Gaspar, Baltasar and Melchior Association and Impreuna pentru ei association), and to the consolidation of a pre-existing social enterprise (the Fundatia Cartea Calatoare). The initiative also provides social enterprises with consulting and training (capacity building) services, as well as financing a case study regarding the expansion of a model project, which has been supported by NESsT for at least two years.

UniCredit Foundation · 2012 Report and Accounts 21 Annual Report

Projects

Social Entrepreneurship and Social Innovation

UniCredit Foundation launched this project in September 2012, in collaboration with NESsT and UniCredit Tiriac Bank, with the aim of providing further support to social entrepreneurship in Romania, through a process which awards four success stories from those submitted by four NGOs. The selection process was very Romania rigorous, and involved 20 Romanian organizations selected by local partners. On the basis of the quality and feasibility of the business plans they presented, the following social enterprises were chosen: • Ajutati Copiii Romania, a social enterprise which focuses on finding work for people with disabilities, in cleaning, Support to social enterprise dressmaking and gardening jobs. • The Prietenia Association, a social enterprise working to build a bakery which will employ people with disabilities. This organization secured a further contribution from the “Your Choice, Your Project - Romania” scheme, which allowed employees of UniCredit Romania to select their preferred project out of four proposed solidarity initiatives. Country: Romania • Fundatia Pentru Dezvoltarea Popoarelor, a social enterprise which creates mosaics, engaging young people Duration: 8 months at risk of social exclusion. (September 2012-April 2013) • Fundatia Ruhama, a social enterprise which employs Roma people from the poorest communities in the Partner: NESsT country to produce wicker goods.

22 2012 Report and Accounts · UniCredit Foundation To establish a system of financial guarantees to give new social entrepreneurs access to credit: this is the objective which inspired the launch of the F&Asible project in summer 2011. The social enterprises selected are provided with managerial, organizational, legal and tax advice, as well as financial support (either through non- Serbia repayable subsidies or assisted bank loans). Advocacy and social economy awareness activities are run in parallel to this, with incentives for networking and collaboration with public administrations. In January 2012, the Financial Support Program for social enterprise was launched, run by Grupa 484 in F&ASible collaboration with UniCredit Bank Serbia and supported (Financial and Advisory Support to by UniCredit Foundation. Three calls for tenders were make the emerging of the Serbian published and 17 proposals collected, five of which were approved by the Investment Committee. Three organizations social economy feasible) received funds and are currently being assisted in the preparation of a development plan (the Personal Country: Serbia Development Plan).

Duration: 21 months (July 2011-March 2013)

Partner: G rupa 484

UniCredit Foundation · 2012 Report and Accounts 23 Annual Report

Projects

Social Entrepreneurship and Social Innovation

To find ideas for a brighter future. This is the goal of the call for tenders published in Serbia in November 2012 by UniCredit Foundation in partnership with the Ana and Vlade Divac Foundation, targeting social enterprises, small cooperatives and families in difficulty living in rural areas, with a view to launching small business Serbia ventures. Both projects to be developed from scratch and pre-existing or trialed projects in need of support will be considered. The initiative is organized in partnership with the Serbia Investment and Export Promotion Agency (SIEPA) and the Balkan tourism organization. Winners will be selected according to both the innovativeness and the The Idea for a better tomorrow actual economic sustainability of their ideas, and assistance will be provided in launching projects.

Country: Serbia

Duration: 12 months (September 2012-August 2013)

Partner: Ana and Vlade Divac Foundation

24 2012 Report and Accounts · UniCredit Foundation Social Inclusion Award 2011

In Spring 2011, the Foundation launched the first “Social Inclusion Award” in Slovenia through a call for tenders addressed to local non-profit organizations, with a view to supporting initiatives working with vulnerable groups and reducing poverty while increasing social responsibility. The theme of social inclusion was broken down into five areas • protection of minors • support for young people • labor inclusion • assistance for the elderly • integration of migrants. The call for tenders received an excellent response from the region: 80 proposals were submitted from all over the country, facilitating the mapping of the third sector in Slovenia and allowing suitable partners to be selected. The Foundation rewarded the three winners with a donation of €25,000. These same projects, detailed below, also took part in the “Your Choice, Your Project - Slovenia” initiative, which allowed UniCredit Banka Slovenija colleagues to select their preferred project, with the winner receiving a further €25,000. The winning project was the “Let them grow older at home” initiative.

The project succeeded in accomplishing its goal of improving the social inclusion of elderly people and supporting their caregivers in five municipalities in Slovenia, through an integrated program focused on helping families and raising community awareness. The extension of training services and support for family members and caregivers was achieved through Slovenia the establishment of self-help groups, workshops and supervision of day-to-day life. The project was implemented in six municipalities, and the Anton Trstenjak Institute has developed training programs for caregivers, volunteers and community network organizers. In total, 119 volunteers, 113 assistants and 10 Let them grow older at home network organizers have received training. In the future, the initiative should be sustained by the local support networks Country: Slovenia that have been created.

Region: Laško, Zagorje ob Savi, Ivancˇna Gorica, Ribnica, Kostel ob Kolpi

Duration: 12 months (June 2011-June 2012)

Partner: Anton Trstenjak Institute

UniCredit Foundation · 2012 Report and Accounts 25 Annual Report

Projects

Social Entrepreneurship and Social Innovation

Promoting social entrepreneurship and raising awareness amongst citizens of the importance of recycling and environmental protection: this is the dual result achieved through the creation of an enterprise focused on the collection, recycling and sale of used garments and fabrics, with a view to recovering 100 tons Slovenia of textile waste. Amongst other things, this program led to the professional training of ten individuals (including young people without previous employment experience and unemployed women over 50). Half of this number was recruited directly from the social enterprise Tovarna Dela - Sus Ltd, and in the Second Hand shop opened as part of Tovarna dela-Tekstil the project. (Job Factory-Textile)

Country: Slovenia

Region: Ljubljana, Slovenske Konjice, Rogaška Slatina, Ravne na Koroškem

Duration: 24 months (January 2011-December 2012)

Partner: DSP Center-Society for Developing of Social Programs and Social Entrepreneurships

26 2012 Report and Accounts · UniCredit Foundation This initiative provided training for a total of 27 individuals from disadvantaged groups (disabled, homeless, long-term unemployed, ex-prisoners and ex-addicts) with a view to placing them in jobs in the fields of organic farming, eco-tourism and the preservation of cultural heritage. Slovenia Activities focused on strengthening the motivation of these vulnerable individuals, while extending the production and accommodation facilities at the Korenika social farm, which has employed 12 people directly from the initiative.

Nature and society in Symbiosis Country: Slovenia

Region: Pomurje

Duration: 24 months (January 2011-December 2012)

Partner: MO ZAIK-Društvo za socialno vkljucˇenost

UniCredit Foundation · 2012 Report and Accounts 27

Projects

Advocacy & Social Inclusion

Creating a network for long term benefit

ny attempt to increase social of local administrations across Europe Ainclusion requires a commitment (including Italy). on behalf of decision makers to The planning targets for this area, serious and effective action in the however, remain unchanged. Young geographical areas in question. Without people excluded from the job market, this, any initiative would be short- minors living in difficult circumstances, term in nature and have limited real families in grave economic and social impact. To mitigate this risk right from difficulty and non self-sufficient elderly the planning phase - and even more people were all once again given the so during project implementation and highest priority for receiving assistance. development - UniCredit Foundation In addition, initiatives aimed at continues to reward and sustain facilitating the integration of migrants initiatives that create links with different in their destination countries continued, types of organizations (public sector, along with those designed, conversely, non-profit, and, in some instances, to re-integrate returning migrants (a even private sector organizations). further effect of the crisis), an aspect This is achieved using various methods which is often overlooked. (from social awards to the more traditional calls for tenders), but with a clearly defined goal: to strengthen the social fabric upon which beneficiaries depend in a way which will last beyond the duration of the Foundation’s intervention. This development has also been made necessary by the ongoing crisis which continues to have a marked effect on the welfare budgets

UniCredit Foundation · 2012 Report and Accounts 29 Annual Report

Projects

Advocacy & Social Inclusion

The 2013 edition of the traditional social inclusion award conceived by the Corporate Sustainability (CS) area of Bank Austria marks the first time that the competition will be administrated on a regional basis with a contribution of UniCredit Foundation. This year’s innovation was introduced to make the competition closer and more accessible Austria to the non-profit associations active in Austria (all nine Austrian federal states will be involved: Burgenland, Carinthia, Lower Austria, Upper Austria, Salzburg, Styria, Tyrol, Vorarlberg and Vienna). Regional juries will be social award 2013 assembled to select a shortlist of the best projects for each region. The chosen proposals will then be put to a vote by Country: Austria employees, clients, and the general public to determine the winning projects. Beyond the initial contribution, financial Region: all nine federal states support for the projects will be provided by an ad hoc fundraising campaign. Duration: beginning in 2013

The initiative envisages the collaboration of three local partners, each engaged in activities to benefit children in hospital or with chronic illnesses. The objective is to offer tangible support to families as well as logistical assistance to accommodation facilities. The three partners were identified by UniCredit Foundation at the end Croatia of 2011, and the initiative got underway in April 2012. The association “Ljubav na djelu - The Parent Association Love in Action” is engaged in supporting the Hematology and Oncology department at the Children’s Hospital in Klai eva; the association Veliko Srce Malom Srcu - Big Social inclusion initiative Heart, Small Heart has set itself the task of increasing awareness of the importance of early diagnosis in heart defects, and of offering support for their prompt and correct Country: Croatia treatment; and finally, the Debra association is focused on Region: Zagabria providing medical instruments for the epidermolysis bullosa center at the Children’s hospital in Zagreb. Donations in Duration: 18 months favor of the three projects have been divided according to the results of the vote held for Zagrebacˇka Banka (October 2011-March 2013) employees, as part of the Your Choice, Your Project program in Croatia. Partner: Ljubav na djelu-The Parent Association Love in Action, Debra, Veliko srce, malom srcu-Big Heart, small heart

30 2012 Report and Accounts · UniCredit Foundation The goal of this project was to reduce the negative effects of migration on vulnerable people (in particular, those over 65 years of age who live in conditions of isolation and deprivation in the Dobrich and Smolyan regions). In order to achieve this, two centers dedicated to home assistance services (Home Care Centers) Bulgaria were set up, to promote self-help through the development of care skills for relatives and neighbors. The project was designed to facilitate access to specialized health and social care services and to Home Care Center improve the social welfare of a hundred elderly, sick and disabled individuals, with a view to preventing (Home care services for elders left behind hospitalization. Positive progress was made in the health in the regions of Dobrich and Smolyan) and living standards of the individuals concerned, along with a reduced sense of social isolation. In the two Home Care Centers, 14 health workers were appointed and specially trained, while 139 elderly people were helped through home visits (21,423 visits were Country: Bulgaria carried out in total). In addition, 47 doctors took part in the project, as well as 45 volunteers who were also able to Region: Dobrich, Smolyan offer assistance following specific training. A further outcome of this project, in the meantime, saw Duration: 24 months significant progress in the process of home care service (February 2010-January 2012) institutionalization in Bulgaria: the Bulgarian Red Cross signed an agreement with the Ministries for Health and Employment which envisages a collaboration designed Partner: Bulgarian Red Cross to promote legislative, organizational and infrastructural changes to improve the home care system for the elderly and the disabled.

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Advocacy & Social Inclusion

Designed to support around 250 families in difficulty, the project aims to prevent the institutionalization of minors at risk of displaying anti- social behavior and reduce the negative consequences of inadequate parental care. In collaboration with community social services, a range of assistance and supervision Bulgaria services were set up for families identified as at-risk. An approach which makes use of so-called “Family Group Conferences” is employed to resolve family conflict, realized through an information kit and the training of specialized personnel working within local communities. These services run alongside awareness campaigns focused on the Supporting Children by importance of the extended family as a support network, strengthening families at risk and on overcoming problems. The Family Group Conference approach was presented during an introductory seminar at the Ministry of Labor and Social Policy and in local communities in the Haskovo region. Subsequently, 20 professional coordinators and mediators were trained, along with 20 instructors (who were given the additional task of disseminating the Family Group Conference approach across the country) and 63 Country: Bulgaria social workers, teachers and Ministry executives. In a year and a half, the program has reached 176 children Region: Haskovo at risk, of whom 50 took part in family group conferences. Additionally, 126 children and 164 adults benefited from the advisory services. Duration: 24 months The project “Supporting children by strengthening families (June 2011-May 2013) at risk in the Haskovo region” was selected as part of the “Your Choice, Your Project - Bulgaria” initiative, which allowed Partner: Tulip Foundation UniCredit Bulbank employees to express their preference for one of the solidarity initiatives in their country.

32 2012 Report and Accounts · UniCredit Foundation Development was promoted in some of the areas worst hit by the Balkan conflict (Slavonia and Moslavina) through support for vulnerable groups (women, long-term unemployed and the elderly) and the social galvanization of young people, using the community based approach. Developed in three separate Croatia stages, the project goals were centered around: the training of 75 people and support and assistance in the agriculture sector, aimed at 50 families at risk of social exclusion; psycho-social, legal and material support for 100 marginalized individuals, through home assistance services, and the promotion of volunteering among young COMMO people and training of young people in community support (Community Mobilization in Sisack- activities. Moslavina and Osijek-Baranja Counties) These activities were carried out at the centers in Darda, Donji Miholjac and Glinam where three branches of the Croatian Red Cross (CRC) are based. Additionally, so-called Social Councils were set up in these regions, comprising representatives from the CRC as well as from Country: Croatia the relevant institutions and other bodies. Thanks to the combined efforts and involvement of local Region: Slavonia and Moslavina communities, the Croatian Red Cross has been able to assist many more people than anticipated. (Osijek-Baranja and Sisak- The most important results from the project appraisal Moslavina provinces) are: psychosocial and legal assistance, provided at CRC facilities and at home with the help of three mobile teams, Duration: 26 months was offered to 353 and 906 people respectively; the (July 2010-August 2012) agricultural tools and materials purchased were made available to the community, and, through this measure, Partner: Croatian Red Cross 373 individuals received help with their working activities; 271 people took part in professional training courses; 15 of these signed employment contracts and 18 launched farming businesses; 692 young people participated in educational activities; 176 volunteers received special training. Furthermore, thanks to the mobilization of resources available in the Darda region, Rural Tourism Djola was established, an association whose mission is to promote tourism in the area.

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Advocacy & Social Inclusion

The project was designed to support the socio- economic inclusion of young people and other vulnerable groups in the Vukovar area, increasing their skills, their competitiveness in the employment market, their professional experience and their access to information. Croatia Various training courses aimed at young people between 18 and 35 years were launched (specifically: English language courses, basic IT for ECDL certification and business training), and services providing free legal advice and support for individuals’ first experiences of work were made available by means of 23 working grants Progressed to cover two months’ salary with fixed-term contracts. (Program for sustainable socio-economic In 21 months, the initiative provided assistance to 835 development of vulnerable groups in individuals, all of whom were able to make use of the administrative and legal advice service, while 75 also Eastern Croatia) attended training courses and 85 were assisted in their search for employment. In addition to these activities, a survey was carried out on the specific needs both of young unemployed people and employers. Country: Croatia

Region: Slavonia-Vukovar

Duration: 21 months (June 2010-February 2012)

Partner: Center for Peace, Legal Advice and Psychosocial Assistance; Youth Peace Group Danube

34 2012 Report and Accounts · UniCredit Foundation Improving the quality of life and facilitating the social and professional integration of young disabled people with neuropsychological disorders living in Southern Estonia, in particular in the districts and cities of Põlva and Tartu: this is the goal of the “Equal opportunities for everybody” project, launched by the Estonia Maarja Village Foundation with the support of UniCredit Foundation. The partner organization is one of the few non-profit bodies in the country committed to promoting employment for individuals with intellectual disabilities through training courses and assisted work schemes. Equal opportunities for The project envisages a range of activities that will evolve everybody over a 14 month period, broken down into three phases and benefiting around 50-60 individuals: in the first Country: Estonia phase, the individuals’ mental and intellectual abilities are assessed; in the second phase, these individuals receive Region: the cities and districts of training and assistance in gaining skills relevant to the requirements of the current employment market, and the Põlva and Tartu third aims to help in the search for jobs. Duration: 14 months (February 2013-April 2014)

Partner: Maarja Village Foundation

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The buntkicktgut Association specializes in using football as a tool in ‘street’ educational projects and as a means of rescuing young people from potentially damaging lifestyles. In the first few years of the collaboration with UniCredit Foundation, preparations were made to roll out the program to all districts of Munich Germany involved in the initiative. Since 2010, the following results have been achieved: • the “Buntkicktgut” brand, and the model it has established, have achieved recognition both within the city and nationwide, • an annual street football championship has been set up Buntkickgut becomes a franchise in Munich, • a total of 256 days of play have taken place, with more Country: Germany than 2,200 matches involving thousands of young people, Region: Munich • 17 football school modules have been implemented, • 23 former participants have gone on to find work in uration 12 months football and/or other sport-related areas. D : This type of project has been incorporated into the (March 2013-February 2014) institutional framework of school welfare assistance. At the beginning of 2013, the second phase of the project Partner: the buntkicktgut Association was launched, which will continue until 2015. The goal of this phase is to create a franchising system in the final two years of the project, which will not only export the model to other German and European cities, but will also provide the tools needed to ensure sustainable economic independence, thus reducing dependence on donors. In the future, Buntkicktgut aims to progress from a simple non-profit model to a fully-fledged social enterprise. In order to achieve this, Buntkicktgut, in partnership with the Social Entrepreneurship Akademie (SEA) and with the support of HypoVereinsbank, has developed a plan of integrated development which, amongst other ideas, proposes the creation of a national and European street football championship.

36 2012 Report and Accounts · UniCredit Foundation With the aim of promoting the social inclusion of minors from immigrant families, 50 childcare workers were trained to intervene in the most challenging circumstances, in order to support children at risk of social alienation. The trainers focused particularly on a group of around 400 children aged between 18 months Germany and three years, engaging them in a language learning program, and working on developing their communication skills. For the families, on the other hand, an innovative program called OPSTAPJE was trialed, which aims to strengthen parents’ educative skills through home visits from individuals trained by education specialists. Early Childhood Education for Equal opportunity

Country: Germany

Region: Munich

Duration: 43 months (February 2009- August 2012)

Partner: Office for Intercultural Activities, Munich Department for Social Policies

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The mentoring project, conceived by the Joblinge association and the German bank HVB, a UniCredit member, stipulates that employees who have voluntarily taken part in the initiative can receive training from the association aimed at improving and managing relationships with young people living in challenging circumstances. These young people Germany come from difficult social backgrounds, and find themselves in limbo between the education and employment systems. After the training phase, HVB employees will have the opportunity to periodically set up one-to-one meetings with the young people previously selected by Joblinge. These informal meetings are not only designed to pass on specific technical skills, but also Joblingnet to act as a moment where young people can come face to face with individuals who represent an example of both personal Country: Germany and professional success. At the same time, the young people involved in this initiative will be offered work experience Region: Munich, Berlin, Leipzig, with one of a range of partner companies. Thus far, there are Frankfurt, Cologne, Bayerwald, six Joblinge facilities in Germany, in Munich, Berlin, Leipzig, Hamburg and Stuttgart Frankfurt, Cologne and Bayerwald; in each of these facilities, the launch of a collaboration with HVB through the mentoring program is envisaged. The program will subsequently Duration: 12 months be extended to the cities of Hamburg and Stuttgart: the (April 2013-March 2014) Foundation will provide around 50% of the funds necessary to cover the wages of the personnel at Joblinge. The remainder Partner: Joblinge association will be donated by the ESF (European Social Fund), and, to a lesser extent, by other private donors.

38 2012 Report and Accounts · UniCredit Foundation Spaces for structured periodic meetings offering services and activities both to individuals suffering from dementia and to their families: this is how the Alzheimer Cafes are best described; a means of social assistance which in the last few years has been very successful, and has grown in response to the increasing prevalence of Italy this disease. The Alzheimer Cafe model is based on the concept of reinforcing and making more of the space and activities already taking place within the local service system, in order to facilitate a more efficient integration into the care system as a whole. The Alzheimer Cafes are usually managed by volunteers, with very few paid staff. Patients (when they UniCredit Factoring call for are able to) and their families are asked to contribute to the tenders for the development of planning of assistance measures. To help with the development new Alzheimers cafes of these institutions, the Foundation published a specific call for tenders in 2012: the “UniCredit Factoring Call for Tenders for the development of new Alzheimer Cafes”. The following associations were awarded a contribution of €60,000 per capita (with an additional prize awarded to the most popular project as voted for by UniCredit Factoring employees, through ountry Italy the “Your Choice, Your Project - UniCredit Factoring” initiative): C : • The Lancillotto social cooperative, Turin: Project: Un caffè per Region: Turin, Verona, Naples, Palermo tutti. • The AFMA non-profit association (Associazione Familiari Duration: 2013-2016 Malati di Alzheimer), Verona: Project: Alzheimer Caffè: coming together to prevent disability (the most voted-for project by Partner: Lancillotto social cooperative, employees. AFMA-Associazione Familiari • AIMA non-profit association (Associazione Italiana Malattia Malati di Alzheimer non-profit d’Alzheimer), Naples: Project:ArteMusiCaféAlzheimer. organization, AIMA-Associazione • La Grande famiglia non-profit association, Palermo: Project: Italiana Malattia d’Alzheimer non- Alzheimer Caffè Palermo: a focal point for patients, families profit organization, La Grande and caregivers. famiglia non-profit organization

Helping the elderly throughout 2012 Support for projects selected through the 2011 call for tenders “Social cohesion strategies for the elderly - UniCredit Card E Prize” continued throughout 2012, with a view to preventing the isolation and social exclusion of elderly people, particularly those affected by disabling diseases. The initiatives undertaken by the five associations, designed to offer support to families responsible for the care of elderly individuals. Below is a brief overview of the projects given funding: • “Aprire le porte” (Sant’Egidio community and Acap non-profit organization, Rome), a project dedicated to home care. • “I nonni con noi” (La Cesile social cooperative society, Moraro-Gorizia), a project dedicated to the promotion of community welfare. • “Come a casa solo a casa” (Papa Giovanni XXIII non-profit community association, Rimini, Forlì and Cuneo), a project dedicated to the shelter of elderly people with no family support. • “AggregAnziani” (Padre Nostro non-profit association welcome center, Palermo), an experimental project based around providing cognitive, emotional and relationship support.

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Advocacy & Social Inclusion

The project was launched in 2010, and hinges around the activities which take place at a cultural center managed together with the Asai organization. It aims to promote the integration of immigrants in the Turin area through a series of training courses aimed at both Italians and non-Italians alike, covering the Italian Italy language and citizenship, as well as refresher courses for intercultural youth leaders. In addition, various learning forums have been established, along with an advice service for non-Italian citizens and teachers. For younger people, especially those from 14 years upwards, school assistance programs have been set up, while children Interculturalism at the Center from six to twelve years can take part in a series of group activities, also available during the summer. Last year, hundreds of people attended the adult training programs, and dozens of organizations were involved. Country: Italy

Region: Piedmont, Turin

Duration: 12 months (January-December 2012)

Partner: A sai-Associazione di Animazione Interculturale (Association for the Advancement of Interculturalism)

40 2012 Report and Accounts · UniCredit Foundation Fostering the introduction of young people into the employment market and enhancing their business skills are the two goals of the ‘Step by Step to Self Reliance’ project, conceived in collaboration with the organization SOS Children’s Villages Latvia, and targeted at young people from 15 to 25 years (including young couples Latvia with children and single parents). The selection process will take the form of a competition, held by the partner association, in which a hundred contestants will take part. Lasting 12 months, the project is centered around two main areas of expertise: career guidance and on-the- job training on the one hand, and the development of Step by step to self reliance business skills and start-up support on the other. Career guidance is offered by experts, and is combined Country: Latvia with other initiatives designed to help familiarize young people with the working environment. The project is Region: Riga, Olaine, Bauska, Cesis organized for 15 young people from 15 to 18 years and Calmiera old. At a later stage, ten internships will be organized for a further 15 individuals (from 17 to 25 years old) at businesses enlisted by SOS Children’s Villages. Duration: 12 months The businesses themselves will cover some of the costs (March 2013-February 2014) involved (one month of on-the-job training) as well as launching a personalized mentoring scheme to enhance Partner: SOS Children’s Villages Latvia social skills and relationship building. The component of the training focusing on so-called micro-businesses will involve 20 young adults aged from 18 to 25 years. These individuals will be given the chance to take part in a specialized training course (through an innovation camp), during which they will develop a business idea with the assistance of expert coaches, learning basic start-up principles. At the end of this training, five micro-grants will be awarded to the ideas that demonstrate the greatest creativity and feasibility. This financial support will be accompanied by advice and mentoring, provided by the business professionals involved in the training program.

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Advocacy & Social Inclusion

Supporting Youth in the Community

The “Supporting Youth in the Community” initiative was launched in 2011 by UniCredit Foundation in Poland, with a view to identifying and supporting social cohesion projects directed at young people at risk of marginalization or in need of educational or training opportunities. In Poland, according to the latest Eurostat figures, those at risk of social exclusion reached 27.2% in 2011 (against a European average across all 27 member states of 24.2%), or 10.2 million Polish citizens. In addition, by December last year (again according to the findings in Brussels), the unemployment rate had reached 10.6% of the total population. Projects established at a national level, and particularly in urban areas, target the following: • preventing the social exclusion of young people and supporting their entry into the job market through informal and extra-curricular teaching, training and career guidance; • developing the intellectual, social and physical capabilities of young people and adolescents through recreational and sporting activities; • offering psycho-social services to young people, minors and marginalized families at risk of poverty; • developing community-level initiatives, particularly in deprived areas (rural and urban), along with a focus on other vulnerable groups.

During the first year, 24 children took part in so-called therapeutic clubs (a sort of assisted after-school club), and 13 of these children also attended a two-week therapeutic holiday camp. Around 300 young people were involved in street activities or sports competitions, particularly football, organized as part of the recovery programs; these also Poland included cultural and recreational trips outside the city. Four young people were given the opportunity to take part in a rally organized as part of the project which took them on a tour of Euro 2012 football stadiums. “The Street is Not for Children” project was selected as part Street is not for children of the “Your Choice, Your Project - Poland” initiative, which allowed Bank Pekao SA employees to choose their favorite out Country: Poland of three solidarity initiatives in their country. Region: Katowice- Za e district

Duration: 24 months (February 2012-January 2014)

Partner: G uardian Angels’ House- Children and Youth Aid association

The project offers a wide range of services (psycho- social, material, educational and training-related support) to young people living in severely deprived socio-economic conditions in the Katowice-Załe¸z·e district, an ex-industrial area which has seen a rapid economic decline in the last few years.

42 2012 Report and Accounts · UniCredit Foundation

The aim of the project is to offer new educational opportunities to minors who, at home and at school, live in disadvantaged and marginalized conditions. Developed in partnership with primary and secondary schools, this special educational program aims to enhance the intellectual abilities and social skills of around 1,400 children and Poland adolescents in 81 schools across 23 cities in Poland. The selection was made with the help of school educators, 20 regional coordinators and a thousand volunteers. The initiative includes a financial education program, particularly important in combating intergenerational poverty. Supporting parents in their relationships with their children is fundamental to I can do it this, partly achieved through educational courses for families. A specialized handbook on these themes has also been Country: Poland developed for parents, along with other promotional material. More information on this initiative will soon be available on a Region: 23 cities in 20 regions: Tricity new site at the following address: (Gdan´sk, Gdynia, Sopot), www.akademiamilionerow.pl. Bydgoszcz, Torun´, Poznan´, Oles´nica, Wrocław, Łódz, Warsaw, Radom, Lublin, Kielce, Nysa, Katowice-Sosnowiec region, Mysłowice, Cracow, Os´wi cim, Sanok, Rzeszów, Kołobrzeg, Białystok

Duration: 23 months (February 2012- December 2013)

Partner: Wiosna Association

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Advocacy & Social Inclusion

The project aims to make significant changes to the quality of life of 150 young people aged between 16 and 22, from disadvantaged communities in four urban areas in Poland. The young people belong to large families living in poverty, with at least one parent out of work. In many cases, they are affected by addiction or suffer from Poland mistreatment or domestic violence. Through various forms of personalized training, expert advice, study grants and incentives for those with an entrepreneurial spirit, these young people are being enrolled on specialized reintegration programs. Additionally, the program establishes partnerships with a hundred local NGOs also engaged in Start to count-on yourself! developing measures to assist young people. In the first year of the project, activity was concentrated Country: Poland in the areas of Radom and Zielonka (Warsaw). In total, 24 young people benefited from the “Plan for Changes” training Region: Cracow, Radom, Warsaw, program, and in the accompanying professional workshops Zawiercie they developed their own “Personal Development Plans” as well as preparing business plans. Of these, 13 individuals received a grant to buy equipment or to participate in Duration: 24 months (February courses to help them realize their plans. A club was also 2012-January 2014) opened in each location, where these young people could meet and share their experiences. Partner: Foundation for Poland

44 2012 Report and Accounts · UniCredit Foundation The project is designed to increase school attendance in young Roma, and thus improve their standard of education, working directly with families who live in extremely precarious socio-economic conditions and have low levels of schooling. The initiative is based in various districts in Prague. Czech Specifically, activities are designed to support 600 young people in their schooling and education, through a range Republic of targeted actions: one-to-one tutoring, strengthening the motivational role of the family, ongoing assistance during moments of crisis, and extra-curricular social activities for children, young people and mothers. Learn, more! Supporting In the schools involved, 63 workshops have been held, education and integration of with 962 students of varying ages taking part. A fee-based socially excluded Roma tutoring service was also offered to 53 pupils, in line with the principles of the project which envisage a token financial contribution from the families for this type of service. 135 families received legal and social assistance, while Country: Czech Republic a further 97 made use of individual support provided by career advisors, and 170 families sought expert advice. Region: Prague PIN managed three themed clubs: a club for young people (“Zastavka”), a club for mothers and a pre-school club. uration Finally, as part of the program, 51 study grants were D : 30 months awarded. Activities were extended for a further period of (January 2011-June 2013) six months beyond the initial project duration to ensure the coverage of services while waiting for European funds to be Partner: People in Need (PIN) assigned.

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Advocacy & Social Inclusion

The project aimed to improve the quality of services provided by local public institutions in terms of assistance for the elderly, and to promote a unified methodological approach to the national social healthcare system (which historically has been very fragmented, both from a legislative and regulatory point of view). Romania The initiative was organized into several areas, including the direct provision of psycho-social services to 400 elderly residents in the county of Iasi, the training of social workers, and the establishment of a rigorous working methodology to take account of specific problems, especially in the psychological, social and legal spheres. A better life for elders Another of the project’s goals was to improve the use of resources available within the community, from families to social service workers. A training course was launched, involving 67 specialists. Country: Romania In addition to the main site (Iasi), elderly people from nine villages received assistance, and 420 individuals monitored by a psychologist and by social workers were given coupons Region: Ias¸i Country to purchase medicines and food. Ten elderly people received medical visits and 78 underwent therapy. For those elderly Duration: 21 months individuals who were totally isolated, with no family care or (April 2011-December 2012) other close relationships, a specialist assistance service was arranged. Finally, a handbook on this innovative approach Partner: Alternative Sociale was published online, with 1200 copies printed in Romanian Association and a hundred in English.

46 2012 Report and Accounts · UniCredit Foundation While maintaining the framework of the previous program (EaSIER - Economic and social integration enhancement for refugees and IDPs living in Collective Centers in Serbia), the new edition of the project will seek to ensure a more sustainable program of assistance over time: direct provision of services has been Serbia accompanied by capacity building and network structuring for Serbian civil society organizations working to assist refugees. The aim is to push local third sector organizations towards more advanced forms of social entrepreneurship. In its first 25 months, the EaSIER initiative has organized 41,633 services for 4,318 individuals housed in 43 collective EaSIER II centers or in private houses. 217 volunteers were involved (Economic and social integration in these activities, and more than 200 socio-cultural events enhancement for refugees and IDPs have been organized. The expansion of the project focused on two main areas: living in Collective Centers in Serbia) continued provision of direct assistance to around a thousand refugees and internally displaced persons (IDPs) in collective centers; and, secondly, the promotion of a network for the exchange of good practices between public bodies and the Country: Serbia associations involved in this field, with a view to promoting the progressive delegation to social enterprises of the egion Vranje, Kraljevo, Belgrade, delivery of services. The activities within these two project R : areas are accompanied by team building activities, and form Kragujevac, Niš part of a wider structural program, funded by the European Commission. Duration: 27 months (December An initial assessment of the EaSIER II project after the 2010-March 2013) first two years of activity shows that 1228 people (mostly displaced) were given shelter in 24 collective centers, and Partner: Grupa 484 benefited from 4,435 medical, psycho-social and legal assistance services. To facilitate integration, children and adults were involved in numerous group activities (cultural and educational workshops, sports and recreational activities, manual work, trips and summer camps). Overall, 50 students took part in five training seminars for future doctors and social workers, and 163 volunteers were involved in the project. It is worth noting that after the launch of public-private partnership mechanisms and refresher courses, attended by 100 civil society representatives and 50 public health center workers, 20 non-profit organizations have become - to all intents and purposes - providers of social services. Finally, as part of a European program aimed at promoting the social inclusion of displaced families, 17 individuals have been awarded grants for the start-up of micro-businesses.

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Through the previous RAISE initiative, 108 families were able to leave collective centers and be successfully integrated into the community. The new project follows on from this, and is based on a socio-economic integration program for 28 families identified as still living in collective centers, with the aim of providing them with Serbia reasonable housing solutions and helping them to achieve economic independence and social integration. The project was developed in two phases. On the one hand, it offers mentoring to families, giving developmental progress support (so-called “integration plans in a rural setting”) and providing the subsidies necessary to achieve Raise II this. On the other hand, the project provides psycho-social (Rural and agricultural integration within assistance and educational, recreational, health and social a supportive environment) service guidance during the transition from collective centers to new rural communities. The project methodology is based on a “case by case” approach, through which social workers adapt measures depending on the specific needs of each family. Country: Serbia In around two years, the project has assisted 31 families, providing psychologists and social workers to aid their Region: Central Serbia integration, along with subsidies of approximately €2,000 per family. Duration: 24 months (January 201-January 2013)

Partner: Ana and Vlade Divac Foundation

48 2012 Report and Accounts · UniCredit Foundation address psychological traumas: experimental techniques, interview-based progressive assessment tools, psycho- diagnostics and art therapy. Volunteer involvement is one of the project’s great assets, and is a distinguishing characteristic: various UniCredit Bank Slovakia employees participated in a range of activities on a voluntary basis, Slovakia collecting sports equipment and acting as “ambassadors” for the Substitute Family Club. The Substitute Family Club enables those undergoing the process of fostering or adoption to exchange their experiences on the most common issues. In total, 81 meetings were organized, and 341 families took part, but that’s not all: expert advisors Let’s give children family and families participated in six residential seminars, Supporting children in substitute supported by individual and group counseling services. 119 children were engaged in specialized programs families (touch therapy, developmental psychotherapy, filial therapy, attachment programs and book of life programs), and 192 family members and 43 volunteers took part in these trips. The project “Let’s give children a family - Supporting children in substitute families” was selected as part of the “Your Choice, Your Project - Slovakia” initiative, which allowed UniCredit Bank Slovakia employees to choose their Country: Slovakia favorite out of three solidarity initiatives in their country.

Region: Bratislava, Trnava, Žilina, Banská Bystrica, Prešov, Bardejov, Košice Duration: 24 months (May 2011-April 2013) Partner: Navrat Civic Association

The project aims to accompany 120 children in their integration into a new family unit, offering psycho- social support to parents during all phases of adoption and fostering. The principle focus of project activities is on the organization of individual and group sessions (including trips and recreational weekends) in order to strengthen the emotional relationship between parents and children. Various different measures are used to help individuals to

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Projects

Advocacy & Social Inclusion

elderly residents in the rural Reshetylivsky district. This initiative will help around 500 individuals at serious risk of social exclusion. An extensive range of social services will be developed around the community center, including medical assistance for rehabilitation and physiotherapy, laundry and repair services, psycho-social Ukraine support services and cultural activities such as university level courses for the elderly. • The promotion of sporting activities and healthy lifestyles, aimed at around 750 young people from two training schools in the cities of Zhytomir and Berdychev (in the Zhytomir region). Teachers and Social inclusion and community social workers will manage a series of specific empowerment courses for students on preventing substance abuse, sexuality and family planning, and the development of communication and interpersonal skills. Sports competitions will be held in the schools (athletics and Country: Ukraine weightlifting), with a view to teaching young people healthy behavior models. To this end, the project Region: Z hytomir, Poltava and includes the modernization of the gyms at both Cherkasy schools and the provision of sports equipment. • Improving the quality of care services and training Duration: 12 months (December 2012- provided by a recovery and rehabilitation center in the city November 2013) of Uman, which will open its doors to young homeless people, young single mothers with no family support and young ex-offenders. 60 young people and their families Partner: EEF-East Europe Foundation will take part in educational programs (motivational and psycho-social support, prevention of substance abuse and high-risk behaviors) and training designed to The “Social inclusion and community empowerment” facilitate social and professional integration. At the same program was conceived in partnership with the EEF-East time, 20 workers from the recovery and reception centers Europe Foundation, member of the Eurasia Foundation will follow specific training courses to improve their skills Network. EEF’s mission as an organization is to promote and the effectiveness of their work. economic and social development. This goal is achieved • Training in technology and crafts for individuals with through strengthening local communities and cooperation psychological and neurological conditions in the Pyryatyn between public sector, private sector and non-profit district of the Poltava region. The project will target a organizations. An institution with a great capacity for hundred people living in a healthcare institution, including innovation, EEF promoted a range of pilot initiatives on a 30 aged between 18 and 35 years. These individuals local level, some of which were subsequently adopted by will attend workshops on printmaking, ceramics and the national social services. dressmaking, held by specially-trained staff from the The program involving UniCredit Foundation comprises four local institution. The project was awarded additional distinct projects which will be managed together with four aid through the “Your Choice, Your Project - Ukraine” local NGOs: program, which allowed UniCredit Ukraine employees to • The construction of a community center based in vote for their favorite out of the four solidarity initiatives Zhovtneve, which aims to combat the lack of care for put forward.

50 2012 Report and Accounts · UniCredit Foundation connections were activated in various Ukrainian towns and villages. Around 680 families in Ukraine and 267 women in Milan were thus able to benefit from expert psychological and legal advice, as well as Skype sessions with family members abroad and training programs for teachers, students and the unemployed. 17 people (relatives of Ukraine migrants and returning migrants) took part in business training courses, following which 4 business plans were selected and financed. In the second phase of the project, agency activities were stepped up in Ukraine: today, 10 Skype centers are up and running at local public service locations in the Support for transactional Lviv region. In the last nine months, 450 new families parenting and socio-economic have been registered on the program and the four micro- business launched are being supported by the project. In reintegration of returning the meantime, advocacy and networking activities have migrants continued, helping to maintain the network created in the first phase of the project.

Country: Ukraine

Region: Lviv

Duration: 38 months (January 2010- February 2013)

Partner: Ukrainian National Charitable Fund Zaporuka; Soleterre- Strategies for Peace non- profit organization

The dual scope of this project is to support international migration from a legal perspective, alleviating the effects of the care drain on families of migrants who remain in Ukraine, as well as supporting the socio-economic development of their communities. This initiative was launched in January 2010 between Italy and Ukraine, in collaboration with the Italian NGO Soleterre and the Ukrainian NGO Zaporuka. In the first 27 months of the project, two assistance agencies were set up for migrants and their families in Milan and Lviv, and seven fixed Skype

UniCredit Foundation · 2012 Report and Accounts 51 Annual Report

Projects

Advocacy & Social Inclusion

Offering support through the construction of IT tools and an online platform for career advice, to aid the social integration of migrants resident in Hungary or abroad and who are looking to find a job in healthcare, are the aims of the project, which was launched in September 2010. A range of tools have been deployed: Hungary in Budapest, an information service has been set up, connected to similar services in other European countries, and in addition, an Internet site for downloading e-learning material was created (www.etitav.hu). The site is equipped with a specialized forum, and connected to a network of training centers and hospitals looking to hire healthcare SIMIGRA workers. In total, 150 hospitals and clinics were involved, as (Information and e-learning services well as various cross-border organizations who work with supporting labor market integration of migrants. The decrease in activity following changes to the migrants in the health-care sector) organizational structure of the GYEMSZI Institute has required an extension of 11 months.

Country: Hungary

Duration: 29 months (September 2010-January 2013)

Partner: GY EMSZI (ex-Institute for Basic and Continuing Education of Health Workers)

52 2012 Report and Accounts · UniCredit Foundation Employee Community Involvement Employees in the driving seat In 2012, as in previous years, UniCredit Foundation has dedicated a proportion of its activities to promoting initiatives that reinforce the sense of solidarity among UniCredit employees, strengthening the culture of voluntary work and donations. The “Your Choice, Your Project” initiative was launched alongside the existing Gift Matching program. With an international scope, the initiative has already engaged many different Group companies.

1% 1%

Gift Matching 19% Program

6% Country: 19 countries where 51% Health & Scienti c Research UniCredit operate Children 22% Education and young people Social welfare Duration: 11 Months (January- Environment November 2012) Emergency support

The Gift Matching Program is the initiative through Poland, Romania, Russia, Serbia, Slovakia, Slovenia and which the Foundation collects UniCredit employee Turkey). On 20 February 2013 in Vienna, the 19 projects donations destined for non-profit organizations. which received the highest number of votes in each country The 2012 edition was the tenth since the program was were presented with an award by the CEO of UniCredit, established. Applications to take part in this program were Federico Ghizzoni, as part of the ceremony to mark the collected between the 1st October and 30 November, and tenth edition of the Gift Matching Program. in total, 13,616 employees took part (in Austria, Bosnia Last year, employees donated a total of €1,894,727 to Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, support 411 projects. As planned, the Foundation matched Germany, Hungary, Kazakhstan, Italy, Latvia, Lithuania, this figure by providing a grant to the same value.

Our Joint Efforts Entitled “Our Joint Efforts” (or “In Prima Persona” in Italian) and published by UniCredit, this volume follows the same format as for the last three years: offering readers a comprehensive overview of the Gift Matching Program projects supported by UniCredit employees. The text gathers testimonials from colleagues from different corners of the world, who in their roles as coordinators, have shown remarkable dedication to the project, as well as giving a blow-by-blow account of all the initiatives carried out in 2011.

UniCredit Foundation · 2012 Report and Accounts 53 Annual Report

Projects

Employee Community Involvement

Your Choice, Your Project

n 2012, as in the previous year, the Foundation wanted to involve UniCredit employees Idirectly in the decision-making processes regarding humanitarian activities. This was achieved through the continuation of the Your Choice, Your Project program, which allows employees to reward several UniCredit Foundation projects directly by making available an additional contribution. The mechanism is straightforward: after a preliminary scouting in different regions by experts from the Foundation to identify areas of need, employees are presented with a range of projects specific to each country. At this point, all that is required is a click of the mouse to express their project preference. In some instances, employees also participated as volunteers in activities organized by the associations. Over the last two years, tens of thousands of employees have been involved in the initiative, which has awarded prizes to many projects (some of which can be found in this volume, marked with the ‘Your Choice, Your Project’ symbol). The countries involved were Bulgaria, Croatia, Poland, Romania, Slovakia, Ukraine, and, obviously, Italy, but with a difference: in Italy, in addition to the national vote for all bank employees, two further specific votes were opened for UniCredit Factoring and UniCredit Leasing employees. Below is a list of the assistance programs supported as a result of the employee votes: • placing young people at risk of social exclusion into employment; • providing support and assistance to vulnerable groups, including care-dependent elderly people; • developing community level initiatives, particularly in deprived areas, to help children and young people (providing informal and extra-curricular education, training and career counseling courses, as well as activities designed to prevent exclusion and psycho-social support services for children and families); • creating networks of volunteers with professional skills and local care centers.

54 2012 Report and Accounts · UniCredit Foundation The “Ithuba-Wild Coast College” initiative has already been supported by UniCredit Foundation for two years, and the project sees the direct and on-site involvement of Bank Austria employees. In the first two years of activity, five groups of Austrian employees have already traveled to South Africa, to the school built and managed by Ithuba Community College, in order to take part in project activities (both manual and training), and Austria many others have helped to create a virtual support community for the initiative. A range of fundraising activities have been organized to generate funds for the creation of various structures (classrooms, a kitchen, a Ithuba-Wild Coast College store room, and a cistern tank and hydraulic plant). In 2013, construction work will continue, in partnership with the NGO s2arch - Social-Sustainable Architecture. Set Country: Austria up in 2004, this body engages the architecture faculties of various European universities, with a view to building schools in developing countries, following a philosophy Region: Mzamba Mouth, based on the concept of an exchange between donors Eastern Cape and beneficiaries, through a collaborative on-site learning process. The direct management of the “Ithuba-Wild Coast Duration: 36 months (2011-2013) College” educational activities is entrusted to the South African NGO, Ithuba Community College, established in Partner: s2arch-Social-Sustainable 2008. Architecture

UniCredit Foundation · 2012 Report and Accounts 55 Annual Report

Projects

Employee Community Involvement

Under this project, as in 2012, HVB employees donate the small change from their net salaries (i.e. the number after the decimal point) to four organizations. These donations are made in the period between 1 January and 31 December 2013. Last year, €19,167.64 was collected overall, destined for four German organizations (Joblinge Stiftung, buddYe.V., DKJS and Balu und Du e.V), which Germany each received €4,791.91 from employees. This figure was matched by the donation from UniCredit Foundation. In 2013, donations will again be allocated to four non-profit organizations dedicated to helping young people in difficult social situations. On the basis of experiences in 2012 and Rest-cent estimates for 2013, UniCredit Foundation is committed to doubling the sum raised by HVB employees, up to a Country: Germany maximum of €50,000. Total donations are not expected to exceed €50,000, given the total of approximately 20,000 Region: Across the entire country employees, a monthly average donation of 50 cents over twelve months, and around 40% adherence to the initiative. This year too, the total collected (employee donations and Duration: 12 months (January 2013- UniCredit Foundation contributions) will be divided into four December 2013) equal parts for each of the organizations involved; these will be selected through an online vote by HVB employees (regardless of adherence to the initiative) from a list which takes into account criteria such as mission, legitimacy and reputation, organizational structure and the proper use of funds.

Supplementing UniCredit employee donations and other initiatives

Here in Bulgaria Through donation matching, UniCredit Foundation has provided support to SOS Children’s Village in Sofia (an organization which runs a series of child welfare projects) with a view to strengthening a charitable initiative launched by UniCredit Consumer Financing Bulgaria.

Here in Russia Following the flood that hit the Krymsk region in southern Russia in July 2012, causing more than 170 deaths, several charitable initiatives have been launched by ZAO UniCredit Bank employees, which led to a fundraising event for the Rotary-Club-Krasnodar association. The figure donated was supplemented through a UniCredit Foundation matching scheme.

56 2012 Report and Accounts · UniCredit Foundation The 2011 edition of the People Survey carried out on all UniCredit Group employees has ensured support for this project dedicated to helping children, through a mechanism which provides one euro per completed questionnaire. The project, implemented in collaboration with UNICEF, was focused on the Astana municipality and Kazakhstan in the Karaganda area, where 30,000 disabled children live. Less than 500 of these children have access to specialized social services. During the project, a monitoring system was launched in these two regions, to determine the level of social inclusion of disabled children. Data is currently being collected and evaluations of the needs of at-risk families Let them be included! are being performed. While legislative work continues, the A multi-sectoral community based development program for the new integrated model for system for children with disabilities the provision of specialized services has also been revised. The first concrete results of this initiative are already visible, and include the following: two hospitals in Astana have been equipped to entertain children during Country: Kazakhstan their hospital stay, and in Karaganda, a mobile unit has been set up to help families in crisis. Finally, training Region: Astana and Karaganda sessions for a hundred people were organized, including local authority representatives, doctors and social service Duration: 18 months workers, as well as for 30 educators. (February 2012-July 2013)

Partner: Unicef

UniCredit Foundation · 2012 Report and Accounts 57 Annual Report

Projects

Other Initiatives

The project aimed to strengthen the partnership between public/private healthcare organizations in Benin, through the dissemination of good practices for the reduction of maternal mortality and the management of healthcare technologies within AMCES association structures. During the project, key criteria were established, including the effectiveness, fairness and efficiency Benin of public policy protocols within the country. Real improvements were seen in two main areas: • Quality of neonatal care, thanks to better staff training, more rigorous compliance with treatment protocols, BARUKA the organization of a system of references and counter-references, and wider drug availability. These Country: Benin measures were implemented in the Atacora region (District of Tanguiéta / Materi / Cobly) and in the Region: Parakou Borgou region (hospitals in Nikki, Kalale, Pèrèrè and Bembèrèkè, Sinende). uration 24 months (January 2011- • Performance in the management of healthcare D : technology, technical procedures (medication December 2012) management, hygiene protocols, etc.) and perceived service quality (safety and satisfaction of staff and Partner: Association des Oeuvres patients). This was carried out at a national level. Médicales Privées The positive conclusion of the Baruka project marks the Confessionnelles et Sociales end of more than 30 initiatives implemented over nine au Bénin - AMCES years, overseen by UniCredit Foundation in Africa.

58 2012 Report and Accounts · UniCredit Foundation The Foundation has decided to continue its collaboration with UniCredit and the La Scala Philharmonic orchestra this year, as part of the ‘Prove Aperte’ (Open Rehearsals) initiative. In addition to providing the public with the chance to see previews of important concerts at low prices by attending the rehearsals, the project represents a real opportunity to support non-profit organizations active in the Italy Milan area. The area chosen for this fourth season is indigence, whereby Milanese of all nationalities and social backgrounds are forced to ask for help with their most basic needs. The four local non-profit The La Scala Philharmonic organizations working for this sector of society that meets the city will receive the proceeds from these events are: the Opera Cardinal Ferrari, the Maria della Passione Centro Country: Italy Francescano, the Cena dell’Amicizia Association and the Pane Quotidiano Association. Each has already selected egion Lombardy, Milan a specific project to which the funds will be allocated. R : The program also sees the participation of conductors such as Riccardo Chailly, Valery Gergiev, Jurai Valcˇuha Duration: 5 Months and Ottavio Dantone. The contribution made by UniCredit (January-May 2013) Foundation will ensure that the organizational costs of the rehearsals are covered, so that the full proceeds can Partner: Orchestra Filarmonica della be passed on to the four associations. Scala Association

UniCredit Foundation · 2012 Report and Accounts 59 Annual Report

A center of expertise on Non-Profit

Know-how at the service of UniCredit

niCredit Foundation acts as a center with the need for initiatives that are Uof expertise for the entire UniCredit sustainable and self-sufficient from Group on initiatives related to the support an economic perspective. Accordingly, and development of non-profit and the Foundation, also for the benefit of philanthropic activities. UniCredit, needed to gain a more up-to- The objective is to provide a specific date understanding of the third sector professional contribution which, on the as a whole, to better identify and clarify one hand, facilitates improved and more the issues that needed tackling. With innovative support for non-profit sector a view to achieving this, a research development, and on the other, helps program on the economic value of the to raise awareness - both within and third sector in Italy (Il valore economico outside of UniCredit - of the importance del Terzo settore in Italia) was launched of strategic philanthropy as a tool to by UniCredit Foundation and the Ipsos support humanitarian activities carried out Research Institute, interviewing 2104 in the various areas in which the Group is organizations working in the non-profit present. sector. The results of this research were Increasingly complex needs are emerging presented on 23 April 2012. A round in these regions, meaning that it is no table discussion saw several important longer feasible to make a real impact figures analyzing and commenting on on the fragility of these areas without these results, including Maurizio Carrara, fostering an improved knowledge and UniCredit Foundation Chairman, Claudio awareness of the vital role played by Gagliardi, Unioncamere General Secretary, humanitarian activities today. Oscar Giannino, at the time a journalist at Alongside traditional assistance Radio24, Nando Pagnoncelli, Managing measures, and in collaboration with Director of IPSOS, and Giorgio Fiorentini, UniCredit Bank, the Foundation has Professor of Business Economics at the started to plan and implement assistance University of Bocconi. The conclusions measures that reconcile the ability to were presented to Roberto Nicastro, respond to complex social demands UniCredit General Manager.

60 2012 Report and Accounts · UniCredit Foundation With the aim of functioning as a control a more careful selection of the non- room for activities related to non-profit profit organizations and projects to be initiatives, UniCredit Foundation is supported on the other. collaborating with the Private Banking The center of expertise is also engaged in division to offer a range of services for supporting any business activities of the private banking customers looking to bank involving the third sector. “invest” in humanitarian initiatives. Based The Foundation collaborates with on the Philanthropy Advisory model, Universo Non Profit, the commercial and starting with the choice made by division that deals specifically with the the customer, the Foundation helps to banking needs of those in the private build a philanthropy “profile”, which sector, on the development of the includes any areas of particular social ‘mydonation’ portal, which facilitates interest, suggesting appropriate tools online fund raising and allows useful to implement support: whether direct resources to be gathered from the public donations to organizations identified for the realization of social planning by the Foundation as being particularly initiatives. Equally, the Foundation’s efficient and effective, the establishment decision to fund social enterprises (both of a new foundation or the activation those that are already established and of a fund managed by the Foundation those in the start-up stages) puts the on behalf of the benefactor, through a bank in a position to act as a credit system of philanthropic ‘brokerage’. provider for the non-profit system. At the same time, UniCredit Foundation Finally, a range of innovative training and supports humanitarian initiatives adopted team building activities established by the by the Bank, in particular, those relating Foundation, including those for UniCredit to funds accumulated through the use of Consulting employees with the Gruppo the ethical credit card (E Card), as well Abele in Turin, see bank employees as measures to establish regulations and engaged in charitable initiatives which procedures promoting greater process help to foster a sense of social identity transparency on the one hand, and and belonging.

UniCredit Foundation · 2012 Report and Accounts 61

Dear Board Members,

We kindly ask you to approve the 2012 Accounts presented here which show an operating deficit of € 2,016,216, a sum which will be deducted from the Operating Reserve.

The Chairman Maurizio Carrara

UniCredit Foundation · 2012 Report and Accounts 63

Accounts as at December 31, 2012

Balance Sheet as at December 31, 2012 66 Report on Operations for Financial Year 2012 67 Notes to the Accounts for Financial Year 2012 68 Accounting principles and valuation criteria 69 Comments on the Balance Sheet and on the Report of Operations 71 Annexes 79 A) Breakdown of the Securities Portfolio held for assets management as at December 31, 2012 79 B) Breakdown of the Funds Portfolio held for assets management as at December 31, 2012 80

UniCredit Foundation · 2012 Report and Accounts 65 Accounts as at December 31, 2012

Balance Sheet as at December 31, 2012 (Amounts in Euro)

Assets Liabilities 31.12.2012 31.12.2011 31.12.2012 31.12.2011 C) Floating assets 10,164,016 13,711,330 A) Net equity 3,333,370 5,349,586 II - Receivables 41,281 7,178 I - Operating reserve 3,270,370 5,286,586 5) Due from others 41,281 7,178 1) Surplus/Deficit on operations in III - Short-term financial assets not period -2,016,216 345,466 classified as fixed assets 5,250,978 11,310,119 2) Surpluses of previous years 5,286,586 4,941,120 2) Other securities 5,250,978 11,310,119 II - Endowment fund 63,000 63,000 IV - Liquid assets 4,871,757 2,394,033 D) Payables, with separate indication 1) Bank deposits 4,159,916 2,325,743 for each item of the amounts due after the following period 6,830,646 8,424,671 2) Cash held at asset management companies 711,041 67,790 2) Payables for contributions to be disbursed 6,648,334 8,172,087 3) Cash and cash equivalents on hand 800 500 2.1) Projects in developing D) Accrued income and prepaid - 63,298 countries 58,854 889,756 expenses due within the following period 58,854 889,756 1) Accrued income - 62,536 due after the following period 0 - 2) Prepaid expenses - 762 2.2) Projects in countries where the

Group is present 2,994,423 3,693,285 due within the following period 2,170,637 3,294,463 due after the following period 823,786 398,822 2.3) Projects involving personnel of the Group 3,595,057 3,564,846 due within the following period 3,595,057 3,164,846 due after the following period 0 400,000 2.4) Studies and expenses for feasibility, assessment and promotion projects - 24,200 6) Accounts payable 91,646 201,337 7) Tax payables 45,550 20,539 8) Social security payables 13,717 12,394 12) Other payables 31,400 18,314 E) Accruals and deferrals - 371 1) Accrued liabilities - 371 TOTAL ASSETS 10,164,016 13,774,628 TOTAL LIABILITIES 10,164,016 13,774,628

Memorandum accounts 31.12.2012 31.12.2011 These represent commitments approved by UniCredit Group Companies to make donations to fund specific projects. 120,000 0

66 2012 Report and Accounts · UniCredit Foundation Report on Operations for Financial Year 2012 (Amounts in Euro)

Expenses Revenues 2012 2011 2012 2011 1) Expenses of ordinary operations 5,295,969 7,104,269 1) Revenues from ordinary operations 3,480,000 7,566,370 1.1) Projects in developing countries - 384,500 1.1) Contributions received 3,480,000 7,566,370 1.2) Projects in countries in which the 4) Financial income and gains 198,955 178,240 Group is present 2,343,100 3,588,375 4.1) From bank deposits 35,218 79,979 1.3) Projects involving personnel of the 4.4) From other assets 163,737 98,261 Group 2,920,000 3,018,499 7) Other Income 232,299 802,090 1.4) Studies and expenses for Recovery from the restructuring of feasibility, assessment and projects - 300,000 promotion of projects 32,869 112,895 Amounts recovered from projects 6) General administrative costs 631,501 1,096,965 completed or not implemented 232,299 485,822 6.1) Employees 316,318 656,235 Contingent assets - 16,268 6.2) Other operating expenses 315,183 440,730

TOTAL EXPENSES 5,927,470 8,201,234 TOTAL REVENUES 3,911,254 8,546,700 OPERATING SURPLUS - 345,466 OPERATING DEFICIT 2,016,216 - TOTALS 5,927,470 8,546,700 TOTALS 5,927,470 8,546,700

UniCredit Foundation · 2012 Report and Accounts 67 Accounts as at December 31, 2012

Notes to the Accounts for Financial Year 2012

Preliminary Information

UniCredit Foundation was established on March 5, 2003 as Unidea - UniCredit Foundation, with an endowment of €63,000. It is a not for profit private foundation and is registered in the Registry of Entities of the Prefecture of Milan under number 414. The purpose of the Foundation is to promote, implement and management support actions in the field of solidarity, assistance and charity, orienting its commitment in particular in countries where the UniCredit Group has a presence. The Foundation’s Bodies are: the Board of Directors, the Chairman, and the Board of Auditors.

Contents and form of the Financial Statements

The Financial Statements have been prepared in accordance with the recommendations issued by the “Non-profit Company Committee” of the “Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili” (Italian National Accounting Board). The accounting principles and valuation criteria have been applied consistently over time and have not been changed unless otherwise noted. The Financial Statements consist of the Balance Sheet, the Report on Operations and the Notes to the Accounts and are accompanied by the Annual Report above. The 2012 financial year closed with an operating deficit of €2,016,216 covered through the partial use of operating surpluses from previous years. The statements are audited by the Board of Auditors. Since the Foundation does not conduct commercial business it is not subject to VAT, and it is also not subject to income tax due to the nature of its income, but is subject to IRAP (Regional Business Tax).

68 2012 Report and Accounts · UniCredit Foundation Accounting principles and valuation criteria Income and expenses are reported on an accrual basis with the exception of contributions received which are recorded on a cash basis. Accrual of the costs from ordinary activities is determined on the basis of the spending resolutions deliberated by Board of Directors. Assets Floating assetsI Receivables are posted at their face value which is the same as their estimated realizable value.

Short-term financial assets not classified as fixed assets - Other securities includes securities in the portfolio for asset management purposes, as well as own securities, held until used by the institution. These securities are all listed and two different criteria are used for their valuation: • securities held for asset management purposes are valued at market value understood as the price reported on the last trading day of the period, including any accrued income due. • own securities are posted at the purchase value and accrued income due is posted under the item Accrued income and prepaid expenses. Liquid assets are reported at face value.

Accrued income and prepaid expenses These items are calculated on an accrual basis and in accordance with the general principle of matching of costs and income in the period.

Liabilities Net equity The Operating Reserve consists of operating results for the current and previous periods.

The Endowment Fund is recognized at face value and represents the value of contributions made at the time the Foundation was founded.

Payables, with separate indication for each item of amounts due after the following period Payables are reported at their face value.

Payables for contributions to be disbursed represent the Foundation’s commitment for projects that have been approved but not funded. They are broken down by the type of project supported.

Accounts payable include amounts owed with respect to invoices or bills received as well as the amount of any invoices/bills to be received for services received but not invoiced by the end of the year.

Tax payables include the advance withholding tax on the income of self-employed workers, taxes withheld from workers and the amount of IRAP tax due.

Social security payables reflect the amount of social security contributions accrued but not paid for people employed.

Other payables represent all remaining payables which, by their nature, are not included in the previous items, including the substitute tax on asset management earnings that have accrued and are owed to the asset management company, which acts as withholding agent, as well as provisions of the substitute protective sum calculated by the bank at the time the own securities were purchased and that will be withheld at maturity at the time of redemption.

Accrued liabilities and deferred income These items are calculated on an accrual basis and in accordance with the general principle of matching of costs and income in the period.

UniCredit Foundation · 2012 Report and Accounts 69 Accounts as at December 31, 2012 I Notes to the Accounts

Memorandum accounts These represent commitments approved by UniCredit Group Companies to make donations to fund specific projects.

Expenses Expenses from ordinary operations include all contributions and expenses for projects approved during the period by the Board of Directors.

General administrative costs reflect the costs incurred by the Foundation during the reporting period to conduct its operations.

Revenues

Revenues from ordinary operations represent the donations received during the period.

Financial income and gains represent bank interest and income from investments in asset management accounts and repurchase agreements entered into and settled during the period, as well as income from own securities, namely interest and differences between the purchase/redemption price pertinent to the period. Income is reported net of expenses and taxes.

The item Other Income brings together the remaining revenues, which by nature cannot be included in the previous categories, including sums recovered due to restructuring of financial commitments relative to projects and surpluses recovered on projects completed or not implemented.

70 2012 Report and Accounts · UniCredit Foundation Comments on the Balance Sheet and on the Report of Operations

Assets

31.12.2012 31.12.2011 C) Floating assets 10,164,016 13,711,330 II - Receivables 41,281 7,178 5) Due from others 41,281 7,178

Receivables due from others includes the balance of prepayments for IRAP tax, prepaid credit cards provided to workers, amounts receivable from Taxiblu due to the deposit paid by the Foundation at the time the subscription contract was signed, as well as advances on invoices to be received.

31.12.2012 31.12.2011 III - Short-term financial assets not classified as fixed assets 5,250,978 11,310,119 2) Other securities 5,250,978 11,310,119

The reduction in the item Other securities, which in the previous year represented both the value of securities held for asset management purposes and Securities maturing in 2012, is due to the decision by Management to thoroughly evaluate the investment strategy and consequently temporarily retain a higher level of liquidity. Assets management includes: • Italian and European government securities of €4,658,485, measured at market value on the last business day of December 2012 and including accrued interest of €34,866. A breakdown of the securities portfolio as at December 31, 12 is provided in the table in Annex A; • European Bond Securities Funds for a total value of €592,493, measured on the basis of values of the units of those Funds at 31 December 2012. Annex B provides information on the composition of and movements in the above-mentioned funds portfolio.

31.12.2012 31.12.2011 IV - Liquid assets 4,871,757 2,394,033 1) Bank deposits 4,159,916 2,325,743 2) Cash held at asset management companies 711,041 67,790 3) Cash and cash equivalents on hand 800 500

Bank deposits represent the total of current account balances held at UniCredit Private Banking S.p.A.

Cash held at asset management companies is the cash generated from the asset management relationship indicated under Other securities.

Cash and cash equivalents on hand is the balance of petty cash used for current expenses

31.12.2012 31.12.2011 D) Accrued income and prepaid expenses 0 63,298 1) Accrued income 0 62,536 2) Prepaid expenses 0 762

The Accrued Income and Prepaid expenses are zero because the securities held in portfolio were liquidated during the year. Memorandum accounts

31.12.2012 31.12.2011 Memorandum accounts 120,000 0

These represent UniCredit Factoring’s commitment for the payment made in January 2013, for the implementation of the specific UniCredit Factoring for Alzheimer Cafés project.

UniCredit Foundation · 2012 Report and Accounts 71 Accounts as at December 31, 2012 I Notes to the Accounts

Comments on the Balance Sheet and on the Report of Operations

Liabilities

31.12.2012 31.12.2011 A) Net equity 3,333,370 5,349,586

I - Operating reserve The operating reserve amounts to €3,270,370, and represents the difference between the operating deficit for the year of €2,016,216 and the surpluses from previous years of €5,286,586.

II - Endowment fund This amount, totaling €63,000 was contributed when the Foundation was established.

Changes in Net Equity are indicated in the table below.

Statement of change to the items of the net equity for financial year 2012 Operating ENDOWMENT TOTAL RESERve FUND NET EQUITY Start of year 5,286,586 63,000 5,349,586 Operating result for the period -2,016,216 - -2,016,216 Balance as at 31/12/12 3,270,370 63,000 3,333,370

31.12.2012 31.12.2011 D) Payables, with separate indication for each item of the amounts due after the following period 6,830,646 8,424,671

Payables for contributions to be disbursed totaled €6,648,334, and represented the Foundation’s commitment to projects that have been approved with disbursements to occur in future periods.

The following table provides a breakdown of projects by type and by disbursement period

72 2012 Report and Accounts · UniCredit Foundation Payables Due 31.12.2012 WITHIN THE FOLLOWING AFTER THE PERIOD FOLLOWING PERIOD totals Projects in developing countries 58,854 0 58,854 Baruka - Basic health care, Benin 7,176 0 7,176 UniCredit Leasing for Haiti 50,000 0 50,000 Payables for Afro project 21/03/07 1,374 0 1,374 Sahel Formation, Mali 304 0 304 Projects in countries in which the Group is present 2,170,637 823,786 2,994,423 Your Choice, Your Project - Bulgaria 18,623 0.00 18,622,66 Social Enterprise in Romania 11,279 0.00 11,279,11 Social Enterprise CEE countries (BG-RO-RS-SI-HU) 250,000 123,678.73 373,678,73 Your Choice, Your Project - Slovakia 22,467 0.00 22,466,85 Social Inclusion in Ukraine 77,078 0.00 77,078,11 Support for SOS Children's Villages Association 3,45 0.00 3,450,87 Step by step to self-reliance 22,500 0.00 22,500,00 Equal opportunities for everybody 22,500 0.00 22,500,00 JOBLINGE - jointly against youth unemployment 25,000 0.00 25,000,00 Migrations Czech Republic 1,504 0.00 1,504,16 Your Choice, Your Project - Slovenia 9,916 0.00 9,915,50 Renewal of Migrations Serbia 5,373 0.00 5,373,43 Buntkicktgut goes Franchise - From Social Project to Social Business 60,000 28,000.00 88,000,00 F&Asible 9,520 0.00 9,520,28 SEFOR II Croatia 26,290 0.00 26,290,00 Your Choice, Your Project - Poland 159,309 0.00 159,309,46 People Survey 2011 for UNICEF, Kazakhstan 29,605 0.00 29,604,79 Renewal of Migrations - Ukraine 1,807 0.00 1,806,66 Call for proposals in Bosnia and Herzegovina 13,368 0.00 13,367,90 Renewal Buntkickgut project, Germany 50,000 0.00 50,000,00 Social Innovation Award 34,000 0.00 34,000,00 Social Award (Regional call for tenders for social inclusion) 54,000 0.00 54,000,00 Seven kindergardens for seven regions. Supporting families during early childhood - Call for proposals 20,000 0.00 20,000,00 Social cohesion strategies for elderly people - Call for proposals 178,937 0.00 178,937,38 Social innovation for Naples 150,000 53,263.55 203,263,55 Grameen Italy 14,654 0.00 14,654,11 UniCredit Leasing for confiscated assets from mafia 20,000 0.00 20,000,00 Alzheimer Cafés Italy 25,705 0.00 25,705,20 Call for tenders for the exploitation and self-sustainability of assets confiscated from the mafia 150,000 74,461.19 224,461,19 Support for Social Innovation Camp - Milan 14,961 0.00 14,961,20 Philanthropic Activities 50,000 12,400.00 62,400,00 Support for Community Nursery Schools project 60,000 43,971.21 103,971,21 Communities of care: families, caregivers, and territorial networks 6,789 0.00 6,789,26 Intercultura al Centro 2012 27,000 0.00 27,000,00 Social cohesion strategies for young people 2012 Call for tenders 300,000 263,390.29 563,390,29 UniCredit Factoring for Alzheimer Cafés DS 120,000 178,621.23 298,621,23 Support for open rehearsals of the La Scala Philharmonic Orchestra 39,000 0.00 39,000,00 Villaggio della legalità e corresponsabilità Serafino Famà 43,000 23,000.00 66,000,00 Cascina Carla e Bruno Caccia 43,000 23,000.00 66,000,00 Projects involving personnel of the Group 3,595,057 0 3,595,057 Gift Matching Program 2012 2,800,000 0 2,800,000 Support to collect donations from UniCredit Employees for East Africa, Germany 80,000 0 80,000 Restcent Initiative, Germany 90,832 0 90,832 ECI Employees Bank Austria 42,000 0 42,000 ECI Three-Year Program 582,225 0 582,225

UniCredit Foundation · 2012 Report and Accounts 73 Accounts as at December 31, 2012 I Notes to the Accounts

Comments on the Balance Sheet and on the Report of Operations

Accounts payable amounted to €91,646 and mainly included amounts owed to UniCredit S.p.A., in relation to the cost of personnel seconded to the Foundation.

Tax payables totaled €45,550 and included the worker-related advance withholding tax and deductions that were paid to the tax authorities in January 2013, and the balance of IRAP due for 2012.

Social security payables totaled €13,717 and represented the social security contributions paid in January 2013, for people employed.

Other payables totaled €31,400 and consisted of the substitute tax on asset management earnings accrued as at December 31, 2012 and not yet withheld by the asset management company, as well as the provision for disputes with Employees.

31.12.2012 31.12.2011 E) Accruals and deferrals 0 371 1) Accrued liabilities 0 371

The item Accrued liabilities is zero because the securities held in portfolio were liquidated during the year.

74 2012 Report and Accounts · UniCredit Foundation Expenses

2012 2011 1) Expenses of ordinary operations 5,295,969 7,104,269 These can be broken down as follows: 1.1) Projects in developing countries 0 384,500 1.2) Projects in countries in which the Group is present 2,343,100 3,588,375 1.3) Projects involving personnel of the Group 2,920,000 3,018,499 1.4) Studies and expenses for feasibility, assessment and promotion of projects 32,869 112,895

Expenses from ordinary operations as a whole decreased with respect to the previous period. This is due to the lower costs incurred for all types of projects following the decrease in income reported.

The costs relating to Projects in developing countries were nil following the Management’s decision to focus attention, after a number of years of activity in developing countries, on needs and social innovation in the countries in which UniCredit is present.

Costs for Projects in countries in which the Group is present, down slightly on the costs incurred in 2011, amounted to €2,343,100. Below is a breakdown by category of the Foundation’s main areas of intervention: Social Entrepreneurship and Social Innovation (€1,477,500); Social Inclusion (€865,600).

Social Entrepreneurship and Social Innovation 1,477,500,00 Social Enterprise in Romania 67,000,00 Social Enterprise CEE countries (BG-RO-RS-SI-HU) 420,000,00 Supplementation of Call for tenders for the exploitation and self- sustainability of assets confiscated from the mafia 2010 30,000,00 Support for Social Innovation Camp Milan 35,000,00 Support for Community Nursery Schools project 135,000,00 "Social cohesion strategies for young people" 2012 Call for tenders 580,000,00 Social Innovation Award 34,000,00 Buntkicktgut goes Franchise-From Social Project to Social Business 88,000,00 Step by step to self-reliance 22,500,00 Cascina Carla e Bruno Caccia 66,000,00 Social Inclusion 865,600,00 Equal opportunities for everybody 22,500,00 JOBLINGE - jointly against youth unemployment 25,000,00 Social Award (Regional call for tenders for social inclusion) 54,000,00 Supplementation of Philanthropic Activities 50,000,00 Villaggio della legalità e corresponsabilità Serafino Famà 66,000,00 Support for open rehearsals of the La Scala Philharmonic Orchestra 195,000,00 Social Inclusion in Ukraine 139,000,00 UniCredit Factoring for Alzheimer Cafés 300,000,00 Support for SOS Children's Villages Association Bulgaria 10,000,00 Support for populations affected by floods in Krymsk - Russia 4,100,00

UniCredit Foundation · 2012 Report and Accounts 75 Accounts as at December 31, 2012 I Notes to the Accounts

Comments on the Balance Sheet and on the Report of Operations

During financial year 2012, in support of the social initiatives of employees of the UniCredit Group, the following activities were approved: - the Gift Matching Program, which as usual consists of a contribution by the UniCredit Foundation to supplement the donations made by employees of UniCredit in favor of non-profit organizations; - other initiatives to support fundraising by Group employees, including the highly innovative Restcent-Initiative which involves our colleagues in HVB Germany who can freely decide where to allocate the euro cents shown in their monthly pay slips, to solidarity initiatives; the Foundation’s commitments is to match the amount raised.

These initiatives were grouped together under the item Projects involving personnel of the Group with total expenses of €2,920,000, a decrease over the previous period in line with the reduction of the total amount of Expenses from ordinary operations

• Gift Matching Program 2012 2,800,000 • Supplementation of Restcent Initiative 50,000 • ECI Employees Bank Austria 40,000 • Make an assist for UniCredit 30,000

Studies and expenses for feasibility, assessment and promotion of projects

The expenses accruing to this period totaled €32,869.

The following table, which shows a breakdown by the type of expense, comparing 2012 with last year, shows a significant decrease due to less promotion work and a reduction in preliminary project expenses and feasibility studies.

2012 2011 Expenses for promotion activities: 9,022 96,201 Research 2,000 60,200 Seminars 3,998 9,892 Publications 3,024 26,109 Preliminary expenses and feasibility studies for projects 12,522 16,694 Project assessment costs 11,325 0

76 2012 Report and Accounts · UniCredit Foundation 2012 2011 6) General administrative costs 631,501 1,096,965

These are the expenses incurred for the performance of activities aimed at achieving the Foundation’s goals and they decreased, from 2011 to 2012, by 42%. The breakdown of this item is as follows

2012 2011 6.1) Employees 316,318 656,235 6.2) Other operating expenses 315,183 440,730

Employees The Foundation does not have its own Employees and uses staff seconded from the UniCredit Group at a cost of €198,164. In addition, as in 2011, employees expenses also includes expenses for personnel with project-based fixed term contracts totaling €118,154.

Please note that, in keeping with the treatment adopted in 2011, a portion of personnel expenses incurred during the year (€129,641) was charged to the Employee Community Involvement - Three Year Program, due to the fact that the program required a significant commitment by personnel for the development of the activities and initiatives to promote employee involvement.

Other operating expenses (€315,183) were made up of the following:

2012 2011 Fees for professional and professional services and consultancies 162,544 257,422 Taxes and withholdings: 25,720 39,437 • IRAP (Regional Business Tax) 24,709 38,482 • Revenue stamps and various indirect taxes 1,011 955 Other 111,440 143,871 • Entertainment expenses 3,525 8,053 • Stationery, printing and office equipment 3,435 14,477 • Travel expenses 9,179 30,435 • Rent 57,767 56,938 • Postage and telephone 9,382 27,481 • Various (subscriptions, publications, membership fees, etc.) 28,152 6,487 Events 15,479 0 315,183 440,730

The decrease over the previous period is mainly attributable to lower costs incurred for payments to professional services and consultancy fees.

Revenues

2012 2011 1) Revenues from ordinary operations 3,480,000 7,566,370

Contributions received, totaling €3,480,000, with a decrease of 54% compared to 2011, represent the donations received from the various companies of the UniCredit Group (€2,800,000) as well as the contributions listed below destined for the execution of specific projects (€ 680,000), as described in the Annual Report.

Ordinary contributions 2,800,000 UniCredit Credit Management Bank S.p.A. 1,000,000 Fineco Bank S.p.A. 500,000 Unicredit Leasing S.p.A. 200,000 UniCredit Factoring S.p.A. 200,000 UBIS S.C.p.A. 900,000

UniCredit Foundation · 2012 Report and Accounts 77 Accounts as at December 31, 2012 I Notes to the Accounts

Comments on the Balance Sheet and on the Report of Operations

Contributions for specific projects 680,000 UniCredit S.p.A. for the 2012 - Social cohesion strategies for young people Call for tenders project 500,000 UniCredit Factoring S.p.A. for the Alzheimer Cafés Project 180,000

2012 2011 4) Financial income and gains 198,955 178,240 4.1) From bank deposits 35,218 79,979 4.4) From other assets 163,737 98,261

The item From bank deposits, totaling €35,218, consists entirely of interest accrued on current accounts. Income is reported net of taxes. The increase over the previous period is due to improved conditions agreed upon.

The item From other assets includes income from asset management accounts with a special risk profile (Mixed Bond management line, with a predominant monetary component of 60% and a medium/long-term bond component of 40%). The management line therefore has an overall ‘Modified Duration’ of 2.67 years. Income is reported net of fees, expenses and taxes. When compared with the previous period, a net increase can be seen due to the changes in market conditions as well as strategic investment choices.

2012 2011 7) Other Income 232,299 802,090 Recovery from the restructuring of projects 0 300,000 Recovery of remainders on projects completed or not implemented 232,299 485,822 Contingent assets 0 16,268

The item Other Income total is €232,299 and represents the current recoveries of the year for completed projects, as detailed below.

2007 Burkina Faso 25/06/2007 1,238 2008 Migration Germany 22/10/2008 2,061 2009 Migration Bulgaria 14/12/2009 908 Migration Hungary 12/04/2010 3,635 Migration Croatia 12/04/2010 1,915 2010 Migration Italy 13/09/2010 4,579 Renewal of Migrations Romania 13/12/2010 825 Soccer, Young People, Lawfulness 13/12/2010 13,297 2011 GMP 2011 203,841 Total 232,299

Other information

As at December 31, 2012, the Foundation had no Employees, but used the services of 5 individuals seconded from UniCredit S.p.A.. The Foundation does not hold, nor did it acquire or sell during the year, any shares of the Founder or of any companies of the UniCredit Group. Members of the Board of Directors and Board of Auditors receive no compensation.

Milan, April 9, 2013

The Chairman Maurizio Carrara

78 2012 Report and Accounts · UniCredit Foundation Annexes

A) Breakdown of the Securities Portfolio held for assets management as at December 31, 2012

(amounts in €)

Balance ACCRUED CLOSING TYPE OF SECURITY FACE VALUE MARKET VALUE COUNTERVALUE INTEREST BALANCE BOT A 14.05.2013 275,000 99,7462 274,302 274,302 BOT A 12.04.2013 540,000 99,8537 539,210 539,210 BOT 28.02.2013 SEM 429,000 99,8952 428,550 428,550

BTAN 3.75% 12/1/2013 100,045 -66 -66

BTP 01 AUGUST 2014 4.25% 103,69 201,000 -93 -93 BTP 01 AUG 1/8/2015 3.75% 103,3615 165,000 -67 -67 BTP 01/09/40 112,000 99,55 111,496 1,934 113,430 BTP 1/2/2018 SEM 184,000 105,41 193,954 3,510 197,464 BTP 2% 01/06/2013 100,409 -94 -94 BTP 3% 01/11/2015 153,000 101,7527 155,647 811 156,458 BTP 4% 1/2/2017 220,000 104,02 228,844 3,730 232,574 BTP 4.75% 01/09/2021 66,000 104,11 68,713 1,083 69,795 BTP 5% 1/8/2039 SEM 48,000 99,68 47,846 1,017 48,864 BTP 5% 01/03/2025 178,000 103,3688 183,996 3,073 187,070 BTP 3.75% 01/08/2021 124,000 97,53 120,937 1,971 122,908 BTP FEBRUARY 13 4.75% 100,304 -197 -197 BTP NOV 2029 5.25% 98,000 103,39 101,322 910 102,232

BOBL 2.25% 11/04/2014 102,86 -62 -62

BUNDESREPUBLIC 4.25% 4/7/2017 82,000 117,975 96,740 1,747 98,487

BUNDES 1.75% 09/10/2015 104,875 -46 -46

CCT JUL 2013 306,000 100,0525 306,161 31 306,192

CTZ 30.04.2013 477,000 99,8053 476,071 476,071 CTZ 30/09/2013 99,1578 CTZ 30.09.2014 149,000 96,548 143,857 143,857

BUND 3.5% 04/07/2019 64,000 118,07 75,565 1,129 76,694 BUND 5.5% 04/01/2031 25,000 152,45 38,113 1,371 39,484

EFSF 1% 12.03.2014 100,93 -6 -6

EURO UNION 2.75% 03/06/2016 75,000 108,267 81,200 2,483 82,358 EURO UNION 2.75% 21/09/2021 34,000 110,296 37,501 266 37,767

EUROPEAN UNION 3.25% 04/04/2018 36,000 113,04 40,694 878 41,573

NETHERLANDS 4% 15/07/2016 68,000 113,225 76,993 1,282 78,275

SCHATZ 1.5 15/03/2013 794,000 100,24 795,906 9,595 805,501 Totals 4,658,485

UniCredit Foundation · 2012 Report and Accounts 79 Accounts as at December 31, 2012 I Notes to the Accounts

Annexes

B) Breakdown of the Funds Portfolio held for assets management as at December 31, 2012

Balance ACCRUED CLOSING TYPE OF FUND FACE VALUE MARKET VALUE COUNTERVALUE INTEREST BALANCE BGF-EUR SHORT DUR BOND EUR D2 6,685.36 15.35 133,320 133,320 DEXIA BONDS EURO SHORT TERM 87,283 2,071.06 180,768 180,768 PIONEER FUNDS EURO BOND CL H 61,772 1,363 84,195 84,196 SCHRODER EURO SHORT TERM BOND C 26,531.31 7.32 194,209 194,209 TotalS 592,493

80 2012 Report and Accounts · UniCredit Foundation UniCredit Foundation · 2012 Report and Accounts 81

Report of the Board of Auditors

To the Board of Directors

The Financial Statements as at December 31, 2012, drafted by the Chairman and submitted for our attention, consist of the Balance Sheet, the Statement of Operations and the Notes to the Accounts, and are accompanied by the Mission Statement. They show the following results:

Balance Sheet Assets Euro 10,164,016 Liabilities Euro 6,830,646 Net Equity Euro 3,333,370

Statement of Operations Expenses Euro 5,927,470 Revenues Euro 3,911,254 Operating deficit Euro 2,016,216

The Notes to the Accounts include all the information considered relevant in order to present a true and accurate picture of the situation. The Mission Statement describes in detail the activities carried out by the Foundation during this tenth year of activity. During the year we have carried out the necessary audits in order to ensure compliance with the Law and with the Articles of Association as well as to check the financial operations of the Foundation, the accuracy of its accounting books and the integrity of the values of the Foundation, as required by the Articles of Association. Our audit of the Financial Statements has been carried out in accordance with the auditing standards recommended by the “Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili” and, in accordance with these standards, we have made reference to the provisions of law regulating the Financial Statements, as detailed in the accounting standards issued by the above mentioned National Council. We wish to emphasize that the Financial Statements are based on the accruals principles of accounting, except for contributions received, which are accounted on a cash basis. The exception to the general rule, on which we agree, has been adopted in accordance with the principle of prudence, to prevent use of funds that are not yet available. On the basis of the audits carried out during the year and on these Financial Statements, we express a positive opinion on the approval of these Financial Statements and on the proposal to cover the operating deficit by the use of the available Reserve, as indicated by the Chairman.

Milan, April 9, 2013

The Board of Auditors

Giorgio Loli Chairman

Elisabetta Magistretti Regular Auditor

Michele Paolillo Regular Auditor

UniCredit Foundation · 2012 Report and Accounts 83 Gift Matching Program: Multiplying solidarity

This year, the UniCredit Foundation Gift Matching Program celebrates its tenth anniversary. Through this initiative, donations made by bank employees to non-profit organizations are matched by the Foundation, up to double the original figure donated. This occasion was marked by a ceremony held at the Bank Austria Kunstforum in Vienna, and was chaired by the CEO of UniCredit, Federico Ghizzoni, with the participation of Gianni Franco Papa, Head of CEE division, and Maurizio Carrara, Chairman of UniCredit Foundation.

“I would like to thank everyone at UniCredit for the increasing commitment and ongoing dedication they have shown from the very start,” commented Federico Ghizzoni, CEO of UniCredit, in a speech to employees. “The energy and the expertise devoted to community interests by our employees has allowed us to translate the sense of solidarity and inclusiveness that has always characterized the Group into concrete action.”

“One of UniCredit Foundation’s highest priorities is to build upon what is already an extraordinary and voluntary effort made by so many people at UniCredit in all 22 of the countries in which we are present,” added Maurizio Carrara, Chairman of UniCredit Foundation. “The Gift Matching Program runs alongside other important initiatives, such as Your Choice, Your Project, all designed to support the integral role played by UniCredit employees. The ever-growing enthusiasm and willingness to participate shown by our colleagues is a confirmation to us that we are on the right track.” In ten years of activity, through the involvement of an ever growing number of employees, the program has helped to finance more than 3,500 projects supported by non-profit organizations with a total of more than €31 million raised through employee donations and the supplementary contribution made by UniCredit Foundation.

In the 2012 edition of the Gift Matching Program last year, 19 countries participated in the program with the involvement of around 13,600 employees: thanks to their donations (which reached €1,870,000) and 100% matching by the Foundation, funds of more than €3.7 million were raised. These 3,500 funds supported 411 non-profit More than 3,500 projects promoted by non-profit organizations. organizations have been supported as part of the Gift Matching Program The commitment of the 31milLion employees who won an award in Through donations from employees and the additional Vienna, one from each country, contributions provided by the Foundation, the Gift Matching brought a further benefit to the non-profit organizations they supported: each of the 19 Program has raised more than €31 million in total projects selected received an additional contribution from UniCredit Foundation, up to a maximum of €5,000.

according to both Pierri and Gori. “In some cases,” says aided since 2011 under the presidency of Carrara, by the the former Chairman, “we were able to take colleagues Your Choice, Your Project initiative, another program aimed directly to the project sites, in order that they could realize at employees. This gives employees in each of the 22 for themselves how much we were achieving, the impact countries where the Foundation is active the opportunity of of our hard work and the challenges we have had to face. rewarding one of the supported projects in their country. We didn’t ever hide anything and they returned from The initiative selected by the majority is awarded an these trips enthused by what they had experienced.” Gori additional grant by the Foundation. has particularly strong memories of the Gift Matching An analysis of the figures and trends of Italian and Program; an initiative begun in 2003 whereby the international non-profit organizations shows a high rate Foundation matches the donations made by employees. of social innovation and employee involvement at every “It was immediately a resounding success, particularly in level. UniCredit Foundation is preparing to enter its second the Eastern European countries we work in and it not only decade following these same lines “in the belief that we brought our employees closer to the Foundation’s activities, have established a strategic development plan that over but also contributed to their knowledge and helped to the long-term will provide a solid and efficient base for promote a culture of social responsibility and solidarity,” our structure and our project planning capabilities,” says concludes Gori.The pursuit of this goal has been further Carrara.

UniCredit Foundation · 2012 Report and Accounts 5 The Foundation celebrates its tenth Anniversary

A history that looks to the future Bertazzoni, the first chairman of the Foundation: “Philanthropy is good for business”

Roberto Bertazzoni was the first chairman of UniCredit Foundation, from 2003 to 2006. Despite his presence at many of the most important industry gatherings, Bertazzoni has never been one to seek pubblicity. For the tenth birthday of “his” Foundation, however, he is prepared to make an exception, stating that “on a personal level, it was an extremely important experience for me.” The meeting takes place at his office in San Girolamo di Guastalla, where the main headquarters of Smeg are based, the company of which he is still Chairman, at the age of 70. Before starting our conversation, Bertazzoni tells a story that gives a great deal of insight into his sensitivity to certain issues: “A few years ago, I heard a speech on television by Don Benzi at a Confindustria meeting. He told the audience that in our country there are 60 thousand prostitutes and that if each Italian company gave one or two of them a job, the issue of exploitation of women would almost cease to exist. It was an astonishing truth.” Bertazzoni took him at his word: one of the girls taken on by the director of Smeg is still employed here at the San Girolamo plant.

In 2003 you were on the Board of Directors of Unicredit. How did the idea of launching a non-profit organization come about? I was the one who suggested to the Board that in addition to working towards its own goals, a bank should also have some involvement in philanthropic activities. I was not inventing anything new, but simply “importing” a principle from the Anglo-Saxon tradition which seemed particularly relevant at that time. Initially, the idea met with some resistance, but then, thanks also to support from the management, the Foundation was launched. It was proposed that I become the Chairman. In the beginning I wasn’t overly convinced that I could do justice to the role, given my commitments elsewhere, but in the end I accepted. And it was an excellent decision.

Why did you want UniCredit to have a foundation? Were the charities that you and other members of the Board of Directors promoted, independently and privately, not enough? Because a brand name and transparency are key elements even in the humanitarian field. It’s one thing if I, Roberto Bertazzoni, with my own non- profit organization, arrive in Poland offering vocational training projects for women who are unemployed or in distress. It’s another thing altogether if I do it with the UniCredit brand behind me, a name that everyone knows and trusts. It has much more credibility and a corporate Foundation offers a degree of transparency and accountability that “personal” initiatives cannot provide.

Ten years on, if you had to make a suggestion to the current directors of the Foundation, what would you say? I would tell them to lend a hand to the operational managers of the Bank.

In what way? I am convinced and the reason I am is because I look at the sales and profit figures from a range of Italian and foreign companies, that a firm that is socially committed has a considerable competitive advantage over those that are not. This is why I truly believe that the Foundation can significantly “help” the Bank’s growth. What to the untrained eye may seem like a diseconomical commitment (investing a percentage of the profits in humanitarian activities) actually has the exact opposite effect.

<< CONTINUED of the plan is the goal of social cohesion. This is to be choices which we have made in the knowledge that our achieved especially by promoting social enterprise with reputation comes neither before nor after, but rather goes a view not only of promoting employment for people in hand in hand with our ability to do business”. distress, but also of creating mechanisms which ensure the Alongside social cohesion with a particular emphasis total, or at least partial, financial autonomy of the initiatives. on supporting young people and the elderly, UniCredit As Carrara explains, “from our perspective, social enterprise Foundation will be guided by its focus on two other should be interpreted both as an innovative tool to respond activities in the medium term. The first of these is to to the challenges that the Foundation takes up, as well continue to act as the Group’s center of expertise for non- as an end in itself: the reason being that the creation of profit organizations. In what way? For example, by providing a social enterprise by itself stimulates development and tailored advice to private banking clients who wish to make social and economic wealth.” Two concepts, namely, social a donation or bequest to an organization engaged in social responsibility and business that for Carrara “now, but work, or by supporting the Group’s product companies, increasingly in the future will be intrinsically connected as in the case of UniCredit Factoring, who have chosen to to each other.” Furthermore, in the face of diminishing allocate funds to social causes. resources and increasing demand for welfare services Lastly, the third pillar regards the involvement of employees, “an organization such as UniCredit is called upon to make a deeply rewarding aspect of the Foundation’s activities,

4 2012 Report and Accounts · UniCredit Foundation A history that looks to the future

From Africa to Eastern Europe, the story of an Italian model

March 2003 - March 2013. Ten years have passed since time, we didn’t want our humanitarian commitment to be the creation of UniCredit Foundation, UniCredit’s non- perceived as anything other than what it was: a concerted profit corporate foundation. Ten years that we would like effort to provide aid to populations in dire need. It was to retrace with the help of two women who contributed certainly not conceived to generate publicity for the Bank, personally to the founding of the even indirectly,” explains Pierri. organization currently headed The focus, therefore, was on by Maurizio Carrara: Francesca providing emergency healthcare. Gori, secretary-general of the “And we did this,” adds Gori, ”by Foundation from 2003 to 2007 establishing close relationships and Paola Pierri, the first Vice with the public authorities of Chairman from 2003 to 2006. 330 the two countries where we Over 330 projects and initiatives were Roberto Bertazzoni, Chairman had decided to intervene.” until 2010, will then give his approved between 2003 and 2012. Therefore long-term projects were perspective. implemented (the last of which was concluded this December) in “The creation of the Foundation was made possible through partnership with local government departments. an extraordinary congruity between the top management After this initial phase, the expansion of the Group’s and the shareholders with regard to the objectives. Both operations to Eastern European countries, due mainly sides agreed on the need to give Unicredit a social mission to the acquisition of HVB in November 2005, prompted that went beyond the mere the Foundation to reassess the functions of a bank,” recalls geographical scope of its projects. Gori. Indeed, it was one of the In other words - whilst obviously most prominent shareholders, maintaining the commitments in Bertazzoni, who first took on the Burkina Faso and Benin - from role of Chairman. “In this sense,” then on the Foundation’s newly continues Gori, “ours was quite MILLION programmed activities would a rare case in the history of 85 be focused on the east, with The total sum allocated to projects charitable foundations established particular emphasis on the most by Italian companies.” supported and implemented between deprived areas of Eastern Europe. 2003 and 2012 reached €85 million. This process also led to a change Paola Pierri was involved in in the type and model of the the project right from the initial intervention. planning stage in 2002 before “Our focus shifted, on the she went on to supervise the implementation of the one hand, from healthcare to employment promotion African projects. With a staff that has remained at around and vocational training and on the other, at the level of seven to nine people and a budget that has peaked at 10 planning and coordination, from an emphasis on public million a year over the last decade which under UniCredit’s partnerships to a focus on developing relationships with articles of association is based on a percentage of the non-governmental organizations,” explained Gori. This Bank’s profits, the Foundation decided to focus initially on approach which will be developed over the coming years, Africa, particularly on Benin and Burkina Faso, countries anticipates the latest three-year development plan (2012- where the Group had no commercial interests. “At the 2015) approved by the Foundation. One of the three pillars >> FOLLOWS

UniCredit Foundation · 2012 Report and Accounts 3 The Foundation celebrates its tenth Anniversary

Letter from the CEO

Dear readers, This year end coincides with an important anniversary for the Foundation: ten years of activity; ten years characterized by excellent results in the non-profit world, of which we are very proud.

Ten years marked by great changes in the economic system and in the very structure of the Group, that has demonstrated an ability to evolve and strengthen its identity as a European Bank through the activities of the commercial banks operating in the 22 countries in which we are present. Social responsibility and sustainable growth to better manage the real needs of the communities and areas where we operate have become key Federico Ghizzoni Chief Executive Officer elements of the Group’s corporate identity.

UniCredit Foundation was established in 2003 as a direct response to the necessity of creating an organization dedicated to dealing with these issues on a daily basis and to strengthen the Group’s commitment through the promotion of a modern philanthropic enterprise built on social commitment, donations and volunteering. The Foundation’s objective is to develop concrete measures to continually focus on communities and the development of sustainable services which, in the long term, will contribute to ensuring social growth.

In these ten years, various projects have been implemented, all united by the direct involvement of people and colleagues. With their commitment and dedication, they perfectly embody the values upheld by our Group and represent an ideal way to bridge the gap between the corporate and humanitarian aspects of the organization by establishing direct contact with local communities and meeting their needs and identifying to us the activities most deserving of receiving investment.

The ten years of the “Gift Matching Program” are a clear example of this: to date, the initiative has supported over 3,500 projects and raised a total of € 31 million. A goal achieved thanks to our colleagues and to the public, which should spur us on to do even more to contribute to the sustainable growth of our communities, not only as individuals but as a Group. I give credit to the Foundation for another thing: over these past years it has succeeded in enhancing UniCredit’s credibility regarding the level of commitment to social issues, as well as reinforcing a sense of belonging through solidarity activities.

I am convinced that what we have already done provides an excellent base from which to continue working in order to best meet our future challenges.

I thank you all and wish you happy reading.

Federico Ghizzoni Chief Executive Officer

2 2012 Report and Accounts · UniCredit Foundation Our history. Our future.

April 2013 April

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UniCredit Foundation Registered office: Milan, Via San Protaso, 3 Registration in the juridical persons register of the Prefecture of Milan under number 414, on May 21, 2003 Tax Code: 97342960156

SPECIAL FOCUS 2012 Report and Accounts and Report 2012

2003-2013

10 years working for solidarity.

to communities. to Our commitment commitment Our

Our History. Our Future.

www.unicreditfoundation.org