UniCredit Central & Eastern European Platform
Federico Ghizzoni, Chief Executive Officer
London, December 2nd 2010 Agenda
UniCredit Positioning and Results
The Value of the Network
Opportunities
Strategy
2 UniCredit Positioning and Results: Key Messages
Î UniCredit is the leading player in CEE
Î CEE is a key contributor to UniCredit profitability...
Î … with positive results in all quarters: cost control, and strong Loss Absorption Capacity
Î Encouraging signs on Asset Quality
Î Excellent positioning and best in class risk/return profile
3 UniCredit is the Leading Player thanks to its Unique Franchise with a Full Coverage Overview Ranking, Employees and Branches by Country(1)
% Deposits mkt share
12.5%13.7%Poland’s’, #2 Markets, #2 Baltics, #7-#10#7- #100.8%0.8% -1.5% -1.5% 1.7%1.4% 5.2%4.9% Czech Rep., #4 20,27019,863 employees 200204 employees Russia, #8#9 # 1 Franchise in CEE 1,6261,718 employees 1,0301,018 branches 7 branches 3,6343,632 employees 6968 branches 123115 branches 4.0%4.1% 5.7%5.9% Slovakia, #5 Ukraine,Ukraine(2) #5, #5 1,2861,252 employees 7,5407,964 employees ~76 bn deposits 8785 branches 499506 branches from customers 5.6%5.0% 6.9%6.8% Hungary, #7 Romania, #6 1,9821,951 employees 2,9673,030 employees 135 branches 253246 branches ~3,860 branches 3.2%2.5% Slovenia, #4#5 Bulgaria, #1 15.0%14.7% 505527 employees 3,8353,784 employees 25 branches 243225 branches ~72,000 employees 25.8%25.4% Croatia, #1 Turkey,Turkey(3) #6, #5 8.3%8.8% 4,7894,778 employees 16,50016,441 employees 146143 branches 915889 branches 7.1%7.8% Within top 5 in 11 22.1%23.1% Bosnia, #2#1 Kazakhstan, #5 (1) 1,8691,838 employees 5.2%6.4% 4,340employees3,848 employees Countries 148140 branches Serbia, #6#4 Presence also in: 146167 branches 813865 employees Kyrgyzstan & Azerbaijan 7273 branches The leading player in the region, #1 by assets, branches and net profit Strong market positioning: 3 6.4% market share in total assets, 6.4% in revenues as of June10
Leadership in AUM (~12 bn), Credit Cards (~8 mln), and leasing (~2 bn new business in 2009)
(1) Ranking by total assets as of Sep10 (CZ, RO and Baltics as of Dec09); Branches and FTEs at 100% as of Sep10; Deposits market share as of 4 September 10 (Poland as of June 10) (2) Including 7 branches in Azerbaijan (3) Including 41 branches in Kyrgyzstan CEE is a Key Driver for Group Profitability Overview
Revenues and PBT Loans and Deposits
(CEE as % of Total UniCredit – 9M10) (CEE as % of Total UniCredit – 9M10)
15% 23% 13% 24%
51% 56%
Revenues Profit before Tax(1) Loans to Customers Deposits from Customers & (Eur 4.8 bn) (Eur 1.4 bn) (Eur 83.2 bn) Securities in issue (Eur 78.9 bn)
CEE is a key pillar of UniCredit’s diversified and balanced business model
~25% of revenues, ~15% of loans to customers, ~13% of deposits from customers
Strong contribution to UniCredit profitability
Balanced loans / deposits structure: Loans/Deposits ratio at ~1.1x as of Sep10
(1) Poland included at 100%; excluding minorities would be 52%. In calculating the ratio, corporate centers cost are not rebated over CEE countries 5 Strong Profits Generation also in Turbulent Times
Results
CEE Platform P&L(1) (Eur mln)
FY07 FY08 FY09 9M10
Total Revenues 5,523 6,915 6,247 4,773 Strong revenues generation capabilities confirmed Operating Costs -2,701 -3,283 -2,802 -2,257 throughout the crisis Operating Profit 2,822 3,632 3,444 2,515 3 Revenues/RWAs always well Net write-downs on loans -285 -561 -1,841 -1,112 above 600 bp
Profit before taxes (PBT) 2,486 3,136 1,600 1,437 Successful cost control PBT excl. Kazakh. 3,088 1,894 1,675 Gradual decrease in cost of risk ongoing, after 2009 peak KPIs FY07 FY08 FY09 9M10 Signs of pick-up of Loans in Revenues / RWAs,%(2) 628 bp 662 bp 658 bp 662 bp 2010 Cost/Income Ratio, % 48.9% 47.5% 44.9% 47.3%
Loans, bn eop 70.0 82.0 77.4 83.2
Cost of risk, bp (on loans)(2) 37 bp 70 bp 234 bp 183 bp
(1) P&L at current FX, FY07 as published in 2008 financial statements; PBT excl. Kazakh considering the impact of the guarantee granted by Bank Austria 6 (2) Annualized figure Consistent Results in All Quarters
Results
Operating Profit at Constant 2008 EoP FX
Index figures, 1Q08 = 100
132 127 123 122 119 117 115 110 111 106 100
(1) (1) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Strenght of the franchise is confirmed also in a challenging environment
7 (1) 1Q09 and 2Q09 benefited from strong trading income (~27 pp) driven by exceptional market conditions Remarkable Cost Control, Supporting Profit Generation…
Results Operating Expenses and FTEs
~ -5,900 FTEs FTEs, ‘000 78.4 78.2 77.9 77.5 76.2
74.4 73.4 72.7 72.4 72.3 119 72.0 Operating 108 108 110 109 110 Expenses 105 105 105 107 Index figures, 100 1Q08 = 100
(1) 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Quick shift from a growth oriented perspective to a stricter cost management approach 3 1Q08-4Q08: ~ +300 branches without FTEs increase 3 1Q09-3Q10: stop to branch expansion, higher focus on cost control ~ -5,900 FTEs since 1Q08 (-4,100 excl. Kazakhstan) 3 ~ 65% thanks to restructuring in Ukraine and Kazakhstan 3 ~ 27% in Poland thanks to post merger integration(2)
Normalized: at constant FX and perimeter 8 (1) Mainly impacted by seasonality e.g. bonus and vacation days and still impacted by branch expansion (2) Excluding the consolidation in 1Q10 of CBB (~ 340 FTEs) … and Increasing Loss Absorption Capacity
Results
CEE Loss Absorption Capacity Evolution
2007 2008 2009 2010
3,632 3,444 3,481 543 506 2,822 487 524
FY07 Buffer FY08 Buffer FY09 Buffer Last 2 quarters 2010 Buffer Operating Operating Operating operating profit, Profit profit profit annualized
2009 buffer at 2.3 actual cost of risk, thanks to resilient profitability and increasing generic reserve 2010 buffer improving at 2.7 ytd cost of risk
Note: buffer defined as ((operating income + generic provisions) / EoP Customer loans), indicating the capacity to absorb loan provisions without losses 9 at pre-tax level 2007 as published in 2008 Reports and Accounts CEE Asset Quality: Improving Trend after 2Q09 Peak
Asset Quality
CEE annualized cost of risk per quarter, bp CEE Impaired loans’ additions (1) , bp
212 190 173 172 157 161 150
76 56 48 47 109 82 85 65 72 44 24 26 2 -12
-76 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Figures excluding Kazakhstan 10 (1) Delta of Gross Impaired Loans on Total Gross Loans in the quarter vis-à-vis prior quarter. Previous quarters re-stated for accounting adjustments and re-mapping in Poland, Romania and Croatia UniCredit Well Positioned in Terms of Asset Quality and Coverage
Asset Quality
Total provisions on 90 days past due (1)
80%
75% Peer 4 Peer 11 Peer 8 Peer 1 70%
65% Peer 2 UniCredit Peer 10 Peer 7 60% Peer 5 55%
50% Peer 9 Peer 3
45% Peer 6 40% 2% 7% 12% 17% 22% Gross 90 days past due loans ratio (1)
(1) Figures as of Sept. 2010 based on CEE perimeter only. Source: UniCredit estimates based on company data. Peers included: Alpha Bank, 11 EFG Eurobank, Erste, KBC, Intesa Sanpaolo, NBG, Nordea, OTP, Piraeus Bank, Raiffeisen, Swedbank. UniCredit excluding Kazakhstan Excellent Positioning: ~70% of Revenues Coming from High Opportunity/Low Risk Countries…
Positioning
Market Attractiveness (1) Banking System Profit UniCredit CEE: revenues contribution by country(9M10) in 2015 0% 5% 10% 15% 20% 25% 30%
Poland 28.7%
110 Turkey 17.9%
Turkey Russia 10.2%
Croatia 9.3% Top 5 accounting 90 Russia Czech Rep. 5.8% for ~72%
Ukraine 5.3%
70 Romania Romania 5.2% Poland Hungary 4.9%
Czech R.Bosnia-H. Serbia Ukraine 50 Bulgaria 4.8% Bosnia 1.8% Hungary CroatiaBulgaria Kazakhstan Slovakia 1.7% Slovakia 30 Slovenia Kazakh 1.7%
Baltics Serbia 1.3%
10 Slovenia 1.2% -0.1 0.4 0.9 1.4 1.9 2.4 Baltics 0.2% Long Term Volatility of Banking Sector Profitability (2)
(1) Market Attractiveness is an index ranked between 0 (low) and 100 (high), is obtained by considering volumes growth (50% weight) and risk-adj revenues 12 over volumes (50% weight) over the period 2012-2015. From 10 to 30 low/medium attractiveness; from 30 to 60 medium/high; >60 high (2) Long Term Volatility of Banking Sector Profitability is the standard deviation of banking system ROA over the period 2004-2015 Source: Unicredit CEE Strategic Analysis … resulting in Best-in-class Risk-Return Profile, Clearly Improving
Positioning
Average CEE CDS vs. NOPAT/Assets
Dec08 Nov10 Blended CDS(1) Blended CDS(1) As of Dec 31 2008 Avg Nov 2010 Peer1 725 Peer2 Peer1 290
525 235 Peer2 Peer3 UniCredit(3) Peer3 Peer5 325 Peer6 180 Peer6 UniCredit(3) Peer4 Peer5 Peer4 125 125 0.3% 0.9% 1.5% 2.1% 2.7% 0.5% 0.8% 1.0% 1.3% 1.5%
Nopat(2)/Assets Nopat(2)/Assets
Significant improvement of risk/return profile: UniCredit blended CDS as of Jun10 down ~-66% from Dec 08 vs ~-58% for peers average Confirmed top tier profitability, the best in class among peers excluding Kazakhstan
(1) Average of countries CDS weighted by Total Assets (as of Jun10) held in the countries by each Bank (2) 13 Net Operating Profit after Tax and before Minorities, as of 1H10 annualized (3) Excluding Kazakhstan Sample: Raiffeisen, Erste Bank, Intesa Sanpaolo, Societe Generale, OTP, KBC Agenda
UniCredit Positioning and Results
The Value of the Network
Opportunities
Strategy
14 Leveraging on Group Strengths to Boost CEE Franchise Value
1 Organizational Model Shaped to Minimize Managerial Complexity
2 Continuous know how transfer and best practice sharing
3 Economies of Scale and Scope
4 Funding
5 Capital
15 1 Organizational Model Shaped to Minimize Managerial Complexity
After HVB/BACA integration, UniCredit CEE banks have been streamlined and organizational structures designed with a “copy and paste” approach: banks in Russia, Hungary, Romania, Bulgaria, Croatia and Czech Republic have the same business model 3 Faster decision making process 3 Best practices sharing
Key projects are primarily tested by some banks and rollout to the other banks 3 Divisionalization program (Romania as pilot), Sales effectiveness programs, Soft collection programs
Ongoing projects to leverage on country/bank specific skills, boosting revenue generation whilst optimizing cost base 3 creation of Sub-Regional Hubs for Investment banking and Consumer Finance
Managerial complexity of CEE operations is a false myth
16 2 Cooperation and Best Practices Sharing
Support from UniCredit Retail in definition / implementation of key initiatives 3 Network Development & Optimization Retail 3 Customer Relationship Management development 3 Alternative Delivery Channels implementation
Exploit the value of cross Country Business Corporate & Leveraging on Group’s Product factories to Fully Capture Business Investment Opportunities, taking advantage of IB know-how to enhance product offer Banking 3 #1 book runner in syndicated loans Oct 2010 ytd (deal for ~8.5 bn); Top 10 in M&A(1) 3 Leading role in landmark transactions (e.g. Lukoil, Agrokor)
Transfer of Group’s platforms to reduce costs and time to go Common 3 Implementation of common CRM in selected countries Platforms 3 Sharing of Mobile Banking platform
(1) Source: Thomson Reuters 17 3 GBS Providing Strategic Support to CEE, Reducing Complexity and Costs
Operations
ICT Full “internal” Real Estate outsourcing Procurement
Communication (GBS) Training Services Selective outsourcing Credit workout and centralized Global Banking Services Global Banking Shared Services HR and F&A coordination
Security
Optimizing the overall’s costs and internal processes, guaranteeing the best- possible synergies and savings, as well as the operational excellence
18 4 All CEE Banks Are Fully Plug-In into UniCredit Cash Pooling…
Regional Liquidity Centers acting as first level netting for each Legal Entity under their perimeter UniCredit S.p.A. – Group Treasury Group wide Finance function: • Group Treasury CASH – POOLING 9 second level netting center (obligation of “first call” for each Legal Entity)(3) and Group steering Regional Regional Regional Regional Liquidity 9 accessing the unsecured Money Liquidity Liquidity Liquidity Center Market, Repos Market and Center Center Center derivatives, issuing CDs/CPs Austria(2) + Italy(1) Germany(2) Poland Group Strategic Funding CEE • 9 coordinating and accessing the medium/long term debt markets
Coordinated liquidity management to optimize funding cost and market access
(1) Global access for all instruments (2) Global access for Pfandbriefe and selected money market instruments 19 (3) According to local laws/constraints and preserving access to local markets 4 … Allowing for a Flexible Management of Funding According to the Cycle and Business Needs
Loans to customers - Deposits from Customers (EoP Eur Bn)
Support from the Group Weak demand for lending; Signs of lending re-start during the peak of the crisis deposits increase
14.5 14.6 13.4 11.1
8.5 8.0 7.2 7.7 6.2
Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
Support from UniCredit Group during the peak of the crisis Key countries fully self funded, e.g. Poland, Turkey, Czech Republic Reduction of funding needs in other countries, e.g. Russia, Kazakhstan, Ukraine due to weak lending demand Exploitation of supranational funding opportunities
Funding has never been a binding constraint for our CEE banks
20 5 Strong Capital Position
Core Tier 1 Ratio, Sep10
12.6% State capital 10.4%
8.6% 8.4% 8.7% 8.8% 7.7%
Peer1 UniCredit Peer2 Peer3 Peer4 Peer5 Peer6
Top Capital Ratios… … without state subscribed capital to be paid back
21 Sample: Raiffeisen, Erste Bank, Intesa Sanpaolo, Societe Generale, OTP, KBC Agenda
UniCredit Positioning and Results
The Value of the Network
Opportunities
Strategy
22 Significant Opportunities to Create Value in CEE
Î Macroeconomic recovery to boost banking sector profitability
Î UniCredit enjoys an excellent positioning and it is well geared to corporate and exports recovery
Î Recovery will translate into lower cost of risk
Î UniCredit is well set to exploit growth opportunities: capital and funding availability
23 Attractive Macro and Banking Picture: Macroeconomic Recovery to Support Banking Profits Growth Macro & Banking Outlook
CEE-17 outlook supported by export and since CEE banking still holds opportunity 2011 also reviving internal demand
y/y % growth CEE-17 total CEE banking profits - bn euro 7.4 80 5.5 70 4.0 3.7 3.6 3.8 60
50
40
30
20
-5.7 10
-7.6 0 FY08 FY09 FY10 FY11 2004 2006 2008 2010 2012 2014
CEE banking system net profits, pre-crisis GDP (real) CEE banking system net profits, post-crisis Exports (real)
SOURCE: UniCredit CEE Strategic Analysis 24 ~75% Revenue Pool Growth Driven by 3 Countries Where UniCredit Enjoys Excellent Positioning Macro & Banking Outlook Contribution by Country to 2009-2012 Revenue Pool Growth in CEE(1)
UniCredit Market Share(2)
2.1% 27% Russia UniCredit Russia: strong growth potential in Retail 10.0% Turkey 33%
9.9% Poland 15% YapiKredi, 4th private bank by assets: large network, leading brand and leadership in Credit Cards, Factoring & Leasing 5.7% Ukraine 7%
Pekao: 1st bank by assets – leader in 9.5% Kazakhstan 6% AUM, top class efficiency, conservative Risk approach, sound BS & strong Capital base 6.3% Romania 2% Significant upswing potential from 8.2% Czech Rep. 4% gradual normalization of environment 6.1% Hungary 3% Increasing Retail business Other 3%
(1) UniCredit CEE Strategic Analysis, estimates as of October 2010 25 (2) Market Share by Loans as of Sept10 UniCredit is Well Positioned to Take the Upside Related to the Exports Strength in the CEE Region Macro & Banking Outlook UniCredit CEE is more skewed vs Corporate Loans to Corporate (including SMEs) Loans to Individuals (including Private)
18% 16% 13% 16% 26% 34% 33% 28% 30% 31% 43% 44% 38% 57%
100% 82% 84% 87% 84% 74% 66% 67% 72% 70% 69% 57% 56% 62% 43%
Baltics Serbia Bosnia Slovenia Slovakia Romania Ukraine Bulgaria Hungary Kazak. Czech R. Russia Croatia Turkey Poland
Sensitivity to CEE-17 exports is significant for UniCredit Market Share in Corporate loans already improving Index figures, FY08 = 100 (nominal terms) Exports weighted by UniCredit share in SWIFT traffic(1) Sep-09 128 22.1% Sep-10 21.9% CAGR +15% 16.7% 15.3% 16.0% 111 14.7% 9.8% 100 9.3% 101 2.4% 84 2.2%
FY08 FY09 FY10 FY11 FY12 Croatia Turkey Russia Czech Rep. Bulgaria
(1) Growth weighted by UniCredit GTB Division relevance in total country exports-related swift traffic 26 Source: UniCredit CEE Strategic Analysis, UniCredit Research Loan Loss Provisions Expected to Normalize. UniCredit Well Set in Major Countries Macro & Banking Outlook
CEE Banking System: Provisioning Trend(1) Impaired Loans Ratio
Total impaired/gross loans Index figures, FY08 = 100
UniCredit Sept 09 Sept 10 System 8.8% 7.0% 6.9% 6.9% 216 Poland
19.4% 17.4% Russia 123 8.1% 7.8% 109 103 105 100 6.4% 5.2% 4.3% 4.2% Turkey FY08 FY09 FY10 FY11 FY12 FY13
CEE banking sector close to the credit quality problem peak and cost of risk is starting to decelerate UniCredit with better quality of loan portfolio vs system in Poland and Russia. In Turkey in line with the market notwithstanding the dynamic growth in loan book The generally lower rate of deterioration relative to the respective market is a prove of our ability to select good customers
(1) UniCredit CEE Strategic Analysis, estimates as of October 2010 27 Ready to Finance Growth Opportunities: Low Leverage and Strong Funding UniCredit Strengths
Asset/Equity CEE players(1), Jun10
13.3 12.5 Best in class in terms of
10.7 10.5 asset/equity 9.4 8.0 7.7 Clear possibility to sustain asset growth keeping safe leverage
Peer1 Peer2 Peer3 Peer4 Peer5 UniCredit Peer6
UniCredit CEE deposits from customers
+10.8 bn 74.9 75.5 72.8 71.3 Strong support from 68.3 67.3 our customers' base 64.7
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
(1) Based on CEE perimeter only 28 Sample: Raiffeisen, Erste Bank, Intesa Sanpaolo, Societe Generale, OTP, KBC Agenda
UniCredit Positioning and Results
The Value of the Network
Opportunities
Strategy
29 CEE Strategy: Key Messages
Î Higher Capital Allocation in the Region
Î Country portfolio managed to Capture Higher Growth Opportunities
Î Room to growth in Retail, leveraging on branch expansion and multichannel
Î CIB/CEE cooperation to maximize business opportunities
30 More Capital Allocation to Exploit UniCredit Engine for Growth
UniCredit Profitability Ratio Group RWAs - CEE as % of Total UniCredit
6.9% WE 2007(1)CEE 2010 (2) 51% 5.0% CEE CEE
2.3% 1.7% 1.5% 0.9%
REV/RWAs PBT/RWAs NOPAT/RWAs 2010 2015
UniCredit’s commitment to the region fully confirmed Even under the current environment, CEE risk/return in 2010 (bottom of the cycle) is still above Western Europe in 2007 (top of the cycle) CEE weight to be gradually increased to exploit growth opportunities
(1) Italy, Germany, Austria 31 (2) Excluding Kazakhstan Country Portfolio Managed to Capture Higher Growth Opportunities
Mapping UniCredit presence in high growth markets(1) BOSNIA BULGARIA CROATIA POLAND
CZECH Leading REPUBLIC SLOVAKIA SERBIA SLOVENIA ROMANIA KAZAKHSTAN UKRAINE
ESTONIA TURKEY Mid-sized
HUNGARY LATVIA
UCG COMPETITIVEPOSITIONING Banking sector gross profit 2015E RUSSIA
Sub-scale LITHUANIA Size € 2bn
Low market attractiveness Medium market attractiveness High market attractiveness
(1) Market Attractiveness is an index ranked between 0 (low) and 100 (high), obtained by considering volumes growth (50% weight) and risk-adj revenues over volumes (50% weight). Competitive positioning based on UniCredit raking by total assets as of Sept10. Leading: ranking #1-4; mid-sized: ranking #5-8; sub- scale: ranking #<8
Source: UniCredit CEE Strategic Analysis, November 2010 32 Retail: Branch Expansion and Multi-channel Banking
Banking Penetration: Still room for growth Network Development Plan
Loans and Deposits/GDP, 2009 New opening: ~900 branches(1 ) mainly in Countries where we have a proven track 117.6% Retail record in branch opening Corporate 70.2% 300 300 45.1% 44.3% 180
120 EMU - 16 CEE - 17
Number of branches per 1 mln inhabitants(3)
569 Turkey Romania Hungary Other (2) 482 508 Countries
236 Multi-channel Banking In combination with physical Network widening 3 Reduce cost to serve Italy Germany Austria CEE 3 Increase customer satisfaction/retention 3 Reach a widespread coverage
Source: UniCredit CEE Strategic Analysis (1) Not included the optimization network process of ~ 100 branches in overlap or misplaced 33 (2) Mainly Russia, Bulgaria and Serbia (3) 2008 figures for Italy, Germany and Austria; 2009 figures for CEE (2008 Slovenia, 1H09 Croatia) Corporate & Investment Banking: Leveraging on Group’s Product Lines Product Capabilities
CIB Product Lines Selected Recent Achievements
Financing & M&A CEE (excl. Russia and Turkey): Advisory #1 by Volume of deals (2005-1H 2010) (Dialogic)
Best Equity House CEE 2010 Markets Best Overall EMEA Research 2009 Best Investment Bank CEE 2009
Global Best Overall Bank for Cash Management in CEE 2010 (Global Finance) Transaction Best Trade Bank in Eastern Europe (Trade Finance) Banking Best Sub-Custodian Bank in CEE 2010 (Global Finance)
Top 3 positions in 11 CEE countries(1) Leasing “Best Banking & Finance Online Application - Czech Republic, 2010” Internet Effectiveness Awards (IEA)
UniCredit’s Product Factories Will Enable to Fully Capture Business Opportunities in the CEE Region
(1) 34 Austria, Bosnia & Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Italy, Latvia, Romania, Serbia, Slovakia, Turkey and Ukraine Two Landmark Transactions Emphasize the Potential of the Cooperation CEE/CIB
High profile transaction, showing our ability to develop strong
Lukoil cooperation among central CIB product expertise and CEE local coverage, in order to perfectly meet customer’s needs
USD 2,380,000,000 Clearly one of the most important Strategic Equity Structured Equity transactions globally this year … Transaction Arranger …proving UniCredit’s superior skills in those transactions Russia – Sep 2010 especially when they require coordination and effectiveness amongst different offices
UniCredit’s played the Role of Coordinator and Mandated Agrokor Lead Arranger
EUR 352.000.000 Strong knowledge and long lasting relationship with the
Syndicated Term client were key drivers of the success of the deal Loan Croatia - July 2010 Excellent coordination between Syndication, Corporate Structured Finance and local teams enabled a timely closing
35 Concluding Remarks
Î Unique exposure to countries poised for sustainable growth 3 Strong capital position in each country
Î Selective growth for certain customer groups and sectors across the board 3 Self funded growth, with specific focus on key countries
Î Continued cost efficiency, with selective investments: 3 Resuming branch expansion in selected countries (Turkey, Romania)
Î Full capability to catch growth opportunities
Competitive Advantage to Exploit Growth Opportunities Leveraging on Strong Capital Positioning and Solid Funding
36 ANNEX
37 The Leading Player in the Region
Overview
1H10 Data Total Assets (1) Number of Countries of EUR bn Branches presence (2)
UniCredit 124 3,854 19
Erste 83 2,158 7
Raiffeisen 78 2,959 19
(3) KBC 66 1,225 12
(4) SocGen 66 2,653 20
IntesaSP 41 1,599 11
OTP 36 1,507 9
Note: (1) 100% of total assets for controlled companies (stake > 50%) and pro rata for non- controlled companies (stake < 50%), except for OTP and Raiffeisen International 38 (Group reported data). (2) Including direct and indirect presence in the 25 CEE countries, excluding representative offices. (3) excluding subsidiaries in Russia, Serbia and Slovenia, except in countries of presence (4) Data as of FY09, apart from total assets in CZ, RO, SRB, BG and AL. Excluding Rusfinance in Russia. Source: UniCredit CEE Strategic Analysis Several Deals Prove IB Capabilities
CIB/CEE Cooperation Selected 2010 CFA transactions in 2010
Siemens Dalkia Česká Czech Airlines Salavatsteklo Ciech Group Atlantic Grupa republika
n.a. USD 40,000,000 EUR 132,000,000 EUR 30,000,000 Sale side advisory Advisor Advisor Financial advisor to EUR 34,000,000 In progress in connection with to Dalkia Česká republika to Czech Airlines Salavatsteklo on the Sole Financial Advisor to Sole Financial Advisor to divestment of facility on the acquisition on the disposal acquisition of Ciech Group on the Atlantic Grupa on the management services of NWR Energy disposal of a 45.4% stake acquisition of Droga business unit of of its Duty Free Saratovstroysteklo from New World business unit in PTU S.A. Kolinska Siemens Engineering a.s. Resources Russia 2010 2010 2010 2010 Poland 2010 Slovenia/Croatia 2010
Ekus Warburg Pincus Mieszko CVC NETBYNET
Undisclosed EUR 27,100,000 Undisclosed EUR 79,250,000 Advisor to the selling Advisor to CVC USD 30,000,000 Sale of a majority stake in Sole Financial Advisor to shareholder of Mieszko on the acquisition of Financial advisor to Ekus, a leading Croatian Warburg Pincus on the on the disposal of a 66% a minority shareholding NETBYNET to raise facility services providers, acquisition of 24.9% stake stake to Eva Grupe in Zagrebačka pivovara private equity financing to Atalian in AmRest
Croatia 2010 Poland 2010 Poland 2010 Croatia 2010 Russia 2010
NFI Midas Eurocash S.A. Adamed Adamed Advent International
PLN 400,000,000 Undisclosed EUR 77,700,000 EUR 79,000,000 Undisclosed Sole Financial Advisor Financial advisor to Advisory to Adamed Financial advisor to Financial advisor in with respect to the Adamed on the acquisition on the acquisition Advent International in securing a strategic acquisition of CEDC’s of Agropharm (OTC drugs of 85% stake in the tender offer for 100% investor for CenterNet Polish distribution and diet supplements Pabianickie Zakłady stake in Wydawnictwa business producer) Farmaceutyczne Polfa Szkolne I Pedagogiczne Poland 2010 Poland 2010 Poland 2010 Poland 2010 Poland 2010
39