One Bank, One UniCredit Transform 2019 Transform Operating Model and Maximise Commercial Bank Value G.F. Papa London, 12 December 2017 One Bank, One UniCredit The five pillars ONE BANK ONE 5 STRATEGIC PILLARS STRENGTHEN AND IMPROVE TRANSFORM MAXIMISE ADOPT LEAN OPTIMISE CAPITAL ASSET OPERATING MODEL COMMERCIAL BANK BUT STEERING QUALITY VALUE CENTRE 2 One Bank, One UniCredit A simple successful Pan European Commercial Bank with a fully plugged-in CIB Transform 2019 fully on track yielding tangible results underpinned by group-wide business momentum "One Bank, One UniCredit" approach to maximise synergies Strong commercial dynamics thanks to network revamp Pragmatic approach to digital to support Transform 2019 Positioning UniCredit as a Pan European winner 3 One Bank, One UniCredit Snapshot of our successful business Data updated as of 9M17 Commercial bank1 EU – based2 % of total revenues – 9M17 % of total revenues 9M17 81% 94% 61% 66% Focused UniCredit Peer Av.3 UniCredit Peer Av.3 Countries with banking operations Market position5 Pan-European but local ITA #2 GER #3 14 o/w 12 in EU4 AUT #1 CEE #16 Syndicated Lending in 7 Client driven CIB Distinctive GTB powerhouse core countries Lending CMIB revenues11 Best Bank in Cash Management factories ITA #1 GER #1 All Syndicated Trade Finance Provider in 10 #1 AUT #1 CEE#2 Loans9 #2 Loans and Bonds 74% Western Europe and CEE8 Scale 2nd Corporate lender in EU12 2513 million clients 4,97513 Retail branches 1. CBK Italy, CBK Germany, CBK Austria, CEE as percentage of Group Revenues; 9M17 5. Based on Total Assets 9M17. For Austria domestic assets as of end of 2015 on local GAAP (source OeNB). For 2. UniCredit excludes Turkey and Russia with a pro-quota approach; BNP Paribas data at FY16 and Société Générale Germany considering private banks data calculated as of proxy of loans at geographical level; 9M17 6. Based on total assets. Compared to Erste, Intesa Sanpaolo, KBC, OTP, RBI, Société Générale, ranking as of 1H17 3. Peers include: BNP Paribas, Intesa Sanpaolo, Santander and BBVA (only for geographical breakdown), Société 7. Capital Markets and Investment Banking, 9M17 Générale 8. Euromoney Cash management Survey, 2017 and Euromoney Cash Management Survey 2017 4. Italy, Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herz., Serbia, Russia, 9. All Syndicated Loans, Home Countries League Tables (all curr.) 9M17 Romania, Bulgaria, Turkey 10. Combined Loans and Bonds – EMEA All borrowers (EUR denominated) 9M17 4 11. CIB revenues excluding Treasury 9M17 12. Peers include: BNP Paribas, Intesa Sanpaolo, Santander, Société Générale, Deutsche Bank Source: Dealogic, Euromoney 2017, Global Finance, OeNB 13. Including 100% clients and branches in Turkey; 9M17, excluding Fineco Business momentum and dynamic commercial performance Net Interest Income1 Loans2 Fees and Commissions €bn Loans volume, Group, €bn GCC & Non Core €bn Business Divisions 444 -6.0% 409 416 412 8 11.5 11.0 37 31 18 +5.5% 8.5 8.0 385 394 436 7.1 372 6.5 4.8 5.0 2015 9M16 9M17 2019 2015 9M16 9M17 2019 2015 9M16 9M17 2019 • NII commercial dynamics supported • Loan volumes of Business Divisions • Investment fees up 12.4% by lower cost of funding increased by 8.5bn in last twelve 9M16/9M17 thanks to higher AuM • Compression of customer spread months and TFAs mainly due to persistently low • Continuous improvement of the • Increased transactional fees (+7.4% interest rates portfolio quality 9M16/9M17) supported by strong GTB performance 1. Including line adjustments due to accounting changes (see Annex, slides 32-35 for additional details). Stated NII: 10.9bn in 2015, 7.9bn in 9M16, 7.7bn in 9M17 2. Excluding Repos; including line adjustments due to accounting changes (see Annex, slides 32-35 for additional details). Stated Loans: 418bn in 2015, 426bn in 9M16, 421bn in 9M17 5 Commercial Banking Italy Transformation of operating model fully on track Business achievements Efficiency improvement • New segmentation of 60.0 59.7 60.5 Cost/Income1 52.6 Corporate clients (%) • New service models for Improved Affluent and Small Business 36.6 35.6 customer 33.5 29.0 • New branch formats being FTE focus with a rolled-out ('000) lower • End-to-End product processes cost structure 3,283 3,140 redesign 2,784 2,400 Branches • Focus on multichannel client approach • Increasing Strong focus on AuM sales RoAC1 • risk adjusted Increasing Consumer Finance (%) 6.9 10.4 11.7 12.9 profitability • Strict risk discipline 2015 9M16 9M17 2019 1. Figures were recasted on a like-to-like basis to consider changes in scope of business segment and line adjustment; Allocated Capital based on RWA equivalent figures calculated as 12.5% of divisional RWA – See Annex, slides 32-35 for additional details 6 Commercial Banking Germany Good results supported by strong growth in all segments Business achievements Efficiency improvement 76.7 • New SME service model 74.0 66.1 67.0 Cost/Income1 • Improved Enhanced Retail focus (%) customer • Increased CIB- Commercial focus with a Banking cooperation and cross- lower selling revenues FTE 11.5 11.0 cost structure • New Bankassurance partnership ('000) 10.3 9.2 with Allianz • Growing Trade Finance business Branches • Successful conversion of 352 342 341 341 Increasing Deposits towards AuM risk adjusted • Continuous growth in Retail 1 profitability lending RoAC (%) 2 8.2 3 9.1 • Low CoR given high quality of 7.6 6.3 portfolio 2015 9M16 9M17 2019 1. Figures were recasted on a like-to-like basis to consider changes in scope of business segment and line 2. Normalised RoAC for Visa sale (10m) adjustment – See Annex, slides 32-35 for additional details; allocated Capital based on RWA equivalent figures 3. Normalised RoAC for a net capital gain on disposal in 3Q17 and in 2Q17 related to the release of a 7 calculated as 12.5% of divisional RWA tax provision (for a total of 207m) Commercial Banking Austria Organisation streamlined, renewed focus on premium advisory Business achievements Efficiency improvement 78.1 74.4 70.6 63.3 • Growing volumes in household Cost/Income1 Improved lending (%) customer • Improved client satisfaction focus with a from new Retail service model lower FTE cost structure • Progress in digital ('000) 5.9 5.5 5.2 4.7 transformation • Increasing new loans Branches production maintaining 174 147 127 124 Increasing portfolio asset quality risk adjusted • Stronger focus on cross-selling profitability RoAC1 • Retail AuM growth driving fees 3 (%) 19.0 2 17.3 13.3 increase 6.0 2015 9M16 9M17 2019 1. Figures were recasted on a like-to-like basis to consider changes in scope of business segment and line 2. Normalised RoAC for Visa sale (+34m) and Integration costs (-208m) adjustment – See Annex, slides 32-35 for additional details; allocated Capital based on RWA equivalent figures 3. Normalised for non recurring items in 3Q17: real estate disposals (+65m) and tax effects 8 calculated as 12.5% of divisional RWA (+17m) for a total of +82m Tangible results in CEE thanks to transformation actions Key achievements KPIs1 • Stable revenue generation in 9M172, in line with Transform 2019 Revenues (€bn) targets: 4.4 - NII stable 9M16/9M17, sustained by lower cost of funding 4.1 Organic growth - Fees +7%3 9M16/9M17, mainly thanks to transaction banking 3.2 3.2 • Continued client acquisition (i.e. +10% new clients 9M17 vs 2015) • Focus on cost discipline, confirming a low C/I ratio Cost/Income (%) Cost savings 37.0 35.2 35.8 36.9 • NPEs reduction ahead of target, with NPE ratio down Gross NPEs ratio4 (%) Risk discipline 9M16/9M17 by 140 bps 11.7 10.3 8.9 7.2 • RoAC up by 90 bps 9M16/9M175 RoAC (%) Sustainable 14.4 profitability 9.7 13.5 13.4 2015 9M16 9M17 2019 1. Figures were recasted on a like-to-like basis to consider changes in scope of business segment and line 3. At current FX rates; constant FX rate: +4.4% 9M16/9M17 adjustment – See Annex, slides 32-35 for additional details; allocated Capital based on RWA equivalent figures 4. Excluding Turkey, Ukraine calculated as 12.5% of divisional RWA 5. +201bps normalized for Visa sale 9 2. Current FX rates at +0.1% y/y and +3.8% y/y normalized for Visa sale; constant FX rate at -1.3% and +2.4% normalized for Visa sale Further strengthened leadership position in CEE Key achievements KPIs Digital users1 (%) • Solid growth in digital, in particular mobile +15p.p. 51 vs. 2015 44 Innovation and • Agile methodology in key projects digitalisation • Further progress in data management and analytics: o/w Mobile users1 (%) 47 new online tools successfully implemented 28 • Enhanced international client coverage International clients ('000) Synergies 28 with the • Effective best practice sharing throughout CEE and 26 Group Group 2 • Ongoing network optimisation delivering good Branch closures/relocations (%) Footprint results 12 14 evolution 9M17 2019 1. Including Turkey at 100%. Ratio defined as number of Retail digital/mobile users on active retail customers 2. Calculated as number of closures/relocations of branches on total number of branches vs. 2015 10 Confirmed CIB market leadership Key achievements KPIs League Tables • Leading EMEA European Debt Finance House 1 Confirmed Combined Loans and Bonds – EMEA • Consistently "Top 3" book-runner in Loans and Bonds in market #2 #2 #3 #2 #3 #2 leadership core markets 2012 2013 2014 2015 2016 9M17 Client Driven Revenues (%) • Client driven revenues boosted by strong commercial 83 Solid activity 67 73 74 commercial • CIB-Commercial Banking cross-selling driven by effective performance initiatives in cross-division and cross-border business 2015 9M16 9M17 2019 Cost Income Ratio2 (%) • Ongoing streamlining of businesses and operating Continuous 44.7 platform resulting in reduced costs 39.6 40.2 40.2 cost discipline and • Continuous cost discipline to reach 2019 C/I target simplification 2015 9M16 9M17 2019 1.