CARIGE GROUP 2011 – 2014 Strategic Plan Sustained growth thhhrough value creation Milan, 17 May 2011 Agenda Our growth process Our Strategic Plan •Scenario •Strategy •Strategic initiatives •Organisational structures •Targets The first quarter of 2011 Conclusions 2 Agenda Our growth process Our Strategic Plan •Scenario •Strategy •Strategic initiatives •Organisational structures •Targets The first quarter of 2011 Conclusions 3 The Carige Group ~50,000 small shareholders Fondazione CR BPCE SA Assicurazioni Market Genova eImperiae Imperia Generali 44.06% (1) 14.98% (1) 2.97% (1) 37.99% (1) Banca Carige SpA Cassa di Risparmio di Genova e Imperia Banking activities Insurance activities Financial activities Trustee activities Federal model •BancaCarige • Carige Vita Nuova (life •CarigeAM SGR • Trust Centre • CR Savona insurance) • Creditis (Consumer •CR Carrara • Carige Ass.ni (non-life credit) Main companies • BM Lucca insurance) •B. CesarePonti Proprietary product factories 1.9 M CUSTOMERS 6,003 667 BRANCHES & SHAREHOLDERS' EQUITY (12MBANK;1.2 M BANK; EMPLOYEES 432 INSURANCE OUTLETS € 3. 5 BILLION 0.7M INSURANCE) (1) Ownership percentage calculated on the basis of ordinary shares only Data as at 31 December 2010 4 Equity investments • Centralised consolidation of IT and management systems • Decentralised network and credit governance with a predetermined delegated powers system FEDERAL • Brand maintenance MODEL • Service contracts • Proximity to the territory through local directors and managers Marginal administrative and organisational costs, largely lower than the benefits in terms of business and knowledge of the local realities • Production margins complementing distribution margins PRODUCT • Greater control on business activities FACTORIES • Products tailored on the customers • Lower organisational complexity due to owning the factory vs partnerships • Cost, commercial and financial synergies 5 An increasingly diversified network... The network today Former Former Former new ISP Unicredit MPS branches branches branches branches 5 8 667 1/1 73/74 46/ 39 2 56/30 28/ 21 643 22 France 254/ 14 40 79/22 5/12 1 2/9 79 522 2 16 204 39/38 42 9/33 6 1994 2007 2009 TODAY 3 11/24 100% 25 72% 71% 69% 96% 48% 39% 38% 63/48 Insurance outlets 432 % of branches % of branches Bank branches 667 in the North in the Liguria region Data as at 31/12/10 6 … resulting from internal growth and M&A Since 1990(1) 214 branches have been opened (103 in Liguria and 111 in 9 Extra-Liguria regions GOALS ernal owth tt (Piedmont, Lombardy, Emilia Romagna, Veneto, rr g In Tuscany, Marche, Lazio, Sardinia, Sicily) Territorial diversification Acquisition of 4 banks and 6 business units for a total of 265 Reduction of branches and 2 insurance concentration companies risks (industry As of the date Acquisition premiums in line with risks, of listing (2): strategic relevance (location, geographic production characteristics, size, risks, product € 2.6 billion synergies with insurance agents, risks, etc.) A invested in etc. ) and with medium - to long - && M&A term income outlook Expansion of the distribution M Prices paid for insurance companies € 3.8 billion network among much lower than comparable financing which to transactions (Price/Premiums for sources allocate the Life: 21.4% vs. an average of collected(3) costs of central 60.8%; for non-Life: 63.8% vs. an structures average of 115 .2%) , in that they (scale reflected the need for thorough economies) restructuring and re-launching (1) Primo Piano sportelli; (2) La quotazione è avvenuta il 17/1/1995 ;(3) Aumenti di capitale e prestiti subordinati 7 Growth in the results of subsidiary banks... Year of Loans and Deposits Net profit C/I acquisition (€ bln) (€ mln) (%) CAGR PePre- 2010 Pre- 2010 Pre- 2010 acquisition acquisition acquisition ∆ p.p. -26.7 p.p. 11.2% 17.7% 86.5 3.6 Banca del Monte 59. 8 1999 0.7 2.2 di Lucca 0.6 (22 branches)branches) -7.9 p.p. 4.3% 6.5% 11. 4 4.5 71.4 Cassa di Risparmio 1999 2.8 63.5 di Savona 5.7 (50 branches) -1.8 p.p. 63%6.3% 21%2.1% 4.7 73.6 71.8 Cassa di Risparmio 2003 3.2 di Carrara 2.1 4.1 (35 branches) 91.6 … 75.1 Banca December 12.7% Cesare Ponti 2004 1.1 2.3 1.7 -16.5 p.p. (6 branches) -0.6 “Pre-acquisition” data refer to the latest approved financial statements prior to the acquisition. CAGR= “Pre-acquisition” data of Banca Cesare Ponti refer to the 2004 financial statements. compound annual average growth rate 8 …and of the branches acquired Year of Loans and Deposits Total revenues C/I (2) CAGR acquisition (€ bln) (€ m) (1) (%) ∆ p.p. 2000 2010 2002 2010 2002 2010 -10.6 p.p. 6.7% 4.1% 66.4 55.8 Banco di Sicilia 0.5 0.9 10.1 14 (21 branches) 2000 2002 2010 2001 2010 2002 2010 6.8% 28%2.8% -7.7p.p. 54.7 43.7 59.0 51.3 Banca Intesa 2.0 3.6 (61 branches) 2001 2003 2010 2002 2010 2003 2010 -15 p.p. 1.8% 0.7% 74.4 59.4 Capitalia 40.1 2002 2.1 2.4 38.3 (42 branc hes ) 2008 2010 2008 2010 2008 2010 +15.4 p.p. -1.6% -5% 70.9 Intesa 55.5 MMarcharch 646.4 626.2 84.8 76. 6 Sanpaolo 2008 (79 branches) 2008 2010 2008 2010 2008 2010 … 3.5% -16.6 p.p. Decembe r UCB 24. 1 90. 1 73. 6 1.5 1.6 (40 branches) 2008 3.0 (1) annualized data CAGR= compound annual average growth rate (2) includes direct costs only 9 Qualitative growth Loans percentage in Greater territorial Liguria dropped diversification from 64% to 38% The share of the top 20 Groups decreased by 8+ Reduction in the concentration of p.p. (to 9.7%) major borrowers and that of the top 50 Groups by 9+ p.p. (to 15. 3%) The incidence of Significant scale economies operating costs per branch dropped by 13% 10 Quantitative growth since listing… TOTAL ASSETS FIA EMPLOYEES (number) (€bln) (€bln) 50.7 46x4.6x 40. 0 4.4x Indirect 2x Other 24.1 deposits 14.6 assets 6,003 467 insurance 8.8 Loans 11.6 Direct 3.2 25. 4 26.6 deposits 5,536 banking 6.0 3,226 5.6 5.6 1994 2010 1994 2010 1994 2010 COST INCOME NET PROFIT SHAREHOLDERS' EQUITY (€ mln) (€ bln) 79.6% -20p.p. 10x 2.3x 3.5 177.2 0.8 59.9% 1.5 (1) 2.7 16.9 0.8 0.7 1994 2010 1994 2010 1994 2010 (1) pro-forma figure inclusive of the AFS reserve established against the revaluation of the equity investment in the Bank of Italy 11 …and sustained growth during the crisis COMPARISON OF PROFITS FOR THE 2005-2007 AND 2008-2010 PERIODS (€ Mln) AVERAGE BANKS (2) -51.1% 3,207 AVERAGE 1,568 PEERS (1) CARIGE -48.5% +24% 661 588 474 340 Italian banks Average peers Carige Profits 2005 - 2007 Profits 2008 - 2010 (1) Source: financial statements of Banca Popolare Emilia Romagna, Banca Popolare di Milano, Banca Popolare di Vicenza, Credito Emiliano, Credito Valtellinese (2) Source: financial statements of Banco Popolare, Banca Popolare Emilia Romagna, Banca Popolare di Milano, Banca Popolare di Sondrio, Banca Popolare di Vicenza, Credito Bergamasco, Credito Emiliano, Credito Valtellinese, Intesa San Paolo, Monte Paschi Siena, Unione di Banche Italiane, Unicredit 12 Dividends policy Dividends per ordinary share(€) Dividends and share capital (1995-2010) (€ bln) 2.42,4 1.4141,4 Dividends Capital Dividendidistributed distribuiti Aumentiincreases di capitale DIVIDENDS • ensuring low volatility and improving trends in POLICY shareholder returns AIMED AT: • creating favourable conditions for the success of capital strengthening measures. 13 Agenda Our growth process Our Strategic Plan •Scenario •SSaegytrategy •Strategic initiatives •Organisational structures •Targets The first quarter of 2011 Conclusions 14 2011 - 2014 Targets 2010PF CAGR CARIGE GROUP 2010 2014 2010PF-2014 ()(1) Direct deposits (€ bln)26.6 26.6 32.9 5.5% Indirect deposits (€ bln)24.1 24.1 31.2 6.7% Total deposits (€ bln) 50.7 50.7 64.1 6.1% Loans to customers (€ bln ) 25.4 25.4 31.1 52%5.2% Net profit (€ mln) 177 179 263 10.1% Shareholders' equity (€ bln) 353.5 353.5 404.0 34%3.4% Cost income 59.9%60.0% 50.3% -9.7 pp Cost of risk 0. 45% 0. 46% 0.50% +4 bps ROE adj. (2) 6.5% 6.6% 8.1% +1.5 pp ROTE (3) 9.9% 10.1% 11.5% +1.4 pp 2010 2014 Core Tier 1/Common Equity 6.0% 8.0% Total capital ratio 9.1% 10.2% (1) Pro-forma figures are normalized by annualizing the contribution of former MPS branches acquired on 31/5/2010 (2) Shareholders' equity net of the Bank of Italy equity investment revaluation reserve (3) Shareholders' equity net of goodwill CAGR= compound annual average growth rate 15 Competitive scenario - Italy SOCIO-POLITICAL SCENARIO REGULATORY SCENARIO • Aging society and net population decrease • New standards governing the banking industry: Basel III • Integration: 2.4 million new immigrants, numbers growing (increased capital requirements and stricter liquidity fast, low level of bankarisation management requirements) and reputation risk • Job instability and new family life cycles: increasing rates of • Constraints and restrictions for consumer protection divorces, common-law couples, “extended” and “mixed” (maximum overdraft charges, usury interest rate, mortgage • Decreased propensity to save and increased propensity to portability, Mifid, PSD,…) consume and borrow • Introduction of Solvency II on solvency requirements for the insurance sector ECONOMIC SCENARIO • Globalisation vs nationalistic tensions • Growth of global GDP driven mainly by emerging countitries (As iaaswell as LtiLatin AiAmerica and Afri ca ) • Slow recovery of the Italian economy (1% growth of the GDP over the plan period) • Progressive raise of interest rates as of 2011 TECHNOLOGY SCENARIO COMPETITION SCENARIO • Widespread digitalisation • Possible new wave of M&As driven by the need to optimize • Use of technology and inter-channelling in areas where no capital and liquidity physical offices exist • Shrinking of unit margins on traditional products and • Opportunity to let customers' needs emerge: customers simultaneous search for maximum distribution efficiency and are called on to plan products and services interactively commercial effectiveness (e.g.