Annual Report and Accounts

2020 Annual Report and Accounts Do the right thing! For the Real Economy We quickly took decisive actions to support the backbone of the real economy in Europe: small and medium sized enterprises. AWARDED ‘WORLD'S BEST BANK FOR SMES’ In October, UniCredit was awarded ‘Best Bank for SMEs’ by Global Finance magazine in its World’s Best Global Banks Awards. This was based on our performance over the past year, based on criteria including reputation and management excellence. Contents Board of Directors, Board of Statutory Auditors and External Auditors as at 31 December 2020 5 Chairman’s message 10 Chief Executive Officer’s message 14 Preliminary notes 33 CONSOLIDATED REPORT AND ACCOUNTS 2020 OF UNICREDIT GROUP 37 COMPANY REPORT AND ACCOUNTS 2020 OF UNICREDIT S.P.A. 503 Incorporations of qualitative information by reference 755 Glossary 761 Contacts 775 Notes The following conventional symbols have been used in the tables: • a dash (-) indicates that the item/figure is non-existent; • two stops (..) or “n.m.” when the figures do not reach the minimum considered significant or are not meaningful; • “n.a.” indicates that the figure is not available. Any discrepancies between data are solely due to the effect of rounding. UniCredit · 2020 Annual Report and Accounts 3 I UniCredit S.p.A. A joint stock company Registered Office and Head Office: Piazza Gae Aulenti, 3 - Tower A - 20154 Milano Share capital €21,059,536,950.48 fully paid in Registered in the Register of Banking Groups and Parent Company of the UniCredit Banking Group, with cod. 02008.1 Cod. ABI 02008.1 Fiscal Code, VAT number and Registration number with the Company Register of Milan-Monza-Brianza-Lodi: 00348170101 Member of the National Interbank Deposit Guarantee Fund and of the National Compensation Fund Stamp duty paid virtually, if due - Auth. Agenzia delle Entrate, Ufficio di Roma 1, No.143106/07 of 12.21.2007 4 2020 Annual Report and Accounts · UniCredit Board of Directors, Board of Statutory Auditors and External Auditors as at 31 December 2020 Board of Directors, Board of Statutory Auditors and External Auditors as at 31 December 2020 Board of Directors Cesare Bisoni Chairman Lamberto Andreotti Deputy Vice Chairman Jean Pierre Mustier CEO Mohamed Hamad Al Mehairi Directors Sergio Balbinot Vincenzo Cariello Elena Carletti Diego De Giorgi Beatriz Lara Bartolomé Stefano Micossi Pietro Carlo Padoan(*) Maria Pierdicchi Francesca Tondi Alexander Wolfgring Gianpaolo Alessandro Company Secretary Board of Statutory Auditors Marco Rigotti Chairman Antonella Bientinesi Standing Auditors Angelo Rocco Bonissoni Benedetta Navarra Guido Paolucci Stefano Porro Manager in charge of preparing the financial reports Deloitte & Touche S.p.A. External Auditors Note: (*) Prof. Pietro Carlo Padoan has been coopted starting from 13 October 2020 replacing Ms. Elena Zambon. UniCredit · 2020 Annual Report and Accounts 5 10 Summary Chairman's message: A solid pan-European commercial bank with local roots 14 Chief Executive Officer's message: Do the Right Thing! 28 Q&A with Roberta Marracino: Sustainability is part of our DNA 6 2020 Annual Report and Accounts · UniCredit 08 20 At A Glance Do the right thing! A simple successful pan-European Ethics and respect: these two values unite us and define our commercial bank Group culture 21 For our Communities 22 For our Clients 24 23 For the For our Colleagues Real Economy 26 For the Environment 27 For Diversity & Inclusion UniCredit · 2020 Annual Report and Accounts 7 At a glance UniCredit is a simple successful Pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive and growing client franchise. Commercial banks International branches and Representative Ofﬁ ces LARGE INTERNATIONAL NETWORK: PRESENCE WITH 13 CORE MARKETS AND 16 COUNTRIES WORLDWIDE Austria Bosnia and Herzegovina Bulgaria Croatia Czech Republic Germany Hungary Italy Romania Russia Serbia Slovakia Slovenia What we do Our values We meet real client needs with real solutions which harness synergies between our businesses: CIB, Commercial Banking and Wealth Management. Ethics and respect: these two How we do it values unite us and deﬁ ne our By focusing on banking that matters, Group culture, how we make we offer local and international decisions and how we act on them. expertise providing unparalleled Do the right thing! is a simple, access to market leading products guiding principle to help us live and services in our core markets. these values every day, everywhere. 8 2020 Annual Report and Accounts · UniCredit Financial highlights GROUP SHAREHOLDERS' EQUITY GROUP NET RESULT €59,507m €(2,785)m Revenues1 (%) Strong global products and 8 10 local excellence: 13 19 well-diversified 36 by Business by Region 48 revenues lines 23 20 23 Commercial Banking Italy Italy CEE Division Germany CIB CEE Commercial Banking Germany Austria Commercial Banking Austria Customers1 (%) Employees1 (%)* 7 7 1 35 by Region 48 32 by Region 44 10 16 Italy Italy 1. Data as at 31 December 2020. * FTE “Full Time Equivalent”= number Germany Germany of employees counted for the rate CEE CEE of presence. Austria Austria Other UniCredit · 2020 Annual Report and Accounts 9 “ UniCredit will remain a solid pan-European commercial bank with local roots, supporting families and companies in their international growth and development”. Chairman's message Cesare Bisoni CHAIRMAN UNICREDIT S.P.A. 10 2020 Annual Report and Accounts · UniCredit Dear Shareholders, On behalf of the UniCredit Board of Directors, I start by sharing our heartfelt gratitude to Jean Pierre Mustier for all of his achievements. Jean Pierre took the lead of UniCredit almost five years ago, at a delicate historical moment. He leaves our Group in a position of strength. He led through years of an extraordinary turnaround, achieved with the unwavering support of all those working at UniCredit, to whom I am also grateful. Thanks to the successful implementation of Transform 2019, despite the crisis triggered by the Covid-19 pandemic, our Group is and remains in a solid position. We have high capital levels and are a true pan- European bank, with a well-diversified presence. We will continue to turn challenges into opportunities. The year 2020, marked by Covid-19, was difficult for everyone. I am proud of how the Group swiftly responded to the crisis, to support all of our stakeholders. First and foremost, we prioritised the personal safety of our employees and clients, by taking immediate and decisive actions to protect them. We also rolled out numerous initiatives to support the real economy, rapidly implementing moratoriums and providing governments-backed loans. At the same time, we provided significant support for hospitals and the civil protection service. As a response to the pandemic, the Supervisory Authority requested in relation to 2019 financial year, a freeze of all dividend payments, to protect capital levels in the banking system and ensure continued support for the real economy. More recently, the ECB announced the resumption of bank profit distribution. UniCredit is also planning an extraordinary capital distribution in the last quarter of the year, should the conditions recur and subject to the Supervisory Authority authorization. It is important that European banks are perceived as a good investment, to encourage international shareholders to commit capital that the financial sector can put to good use across Europe. As such, the Group has recently confirmed its dividend policy, to create solid value for our shareholders. The way the Group has achieved its turnaround and served our clients and communities leaves me very optimistic about the future. In October, we co-opted in our Board of Directors Piercarlo Padoan who is the best candidate for the position of UniCredit Chairman for the next term. The Group will benefit from his extraordinary experience and extensive knowledge of European institutional and financial framework. His co-optation well in advance of the end of my mandate has ensured a smooth hand-over and has played a key role in the Board renewal process. Together, we have identified the new Chief Executive Officer, Andrea Orcel, an outstanding banker with a broad experience in the international banking sector combined with proven track record in business transformation and risk management focus. We strongly believe his contribution to UniCredit will be distinctive. Over the coming years, Piercarlo UniCredit · 2020 Annual Report and Accounts 11 and Andrea will have the opportunity to work closely with the wonderful people at UniCredit, benefitting from their extraordinary skills and dedication. In a challenging economic context, with rapidly evolving client needs, digital transformation plays a critical role. On the one hand, it responds to the growing demand for simplicity and speed. On the other hand, it allows the optimisation of company processes. UniCredit will continue to invest in innovation. This is my final message to you as Chairman. My mandate, together with that of the current Board, is coming to an end. We leave a transformed Group, fully dedicated to supporting the real economy: clients and communities. UniCredit is inspired by two core values, ethics and respect, which form the basis of our long-term vision, and it will continue to provide finance and drive positive change in society. Furthermore, at UniCredit, the ways in which results are achieved are as important as the results themselves. We are proud that the attention to sustainability has been acknowledged externally, through numerous awards. The Group will continue to grow and strengthen the client franchise, transform its service model and optimise productivity, with disciplined risk management and controls as well as rigorous capital and balance sheet management. UniCredit will remain a solid "pan-European commercial bank with local roots" supporting the real economy: families and companies, in their international growth and development. Your faithfully, Cesare Bisoni Chairman UniCredit S.p.A.

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