UNICREDITO ITALIANO GROUP“Growth through Specialisation, Quality and Innovation”

Alessandro Profumo - CEO

Merrill Lynch Banking & Insurance ConferenceLondon - October, 8th 2003

2

AGENDA

Group Highlights

Divisional overview

Private & Asset Management Division

New Europe Division

Corporate Division

Retail Division

3

READY TO GROW

In the last three years financial institutions faced a tough macroeconomic scenario, characterised by modest GDP growth rates, strong contraction of interest rates, low returns and higher volatility in the financial markets

Thanks to its diversified portfolio of businesses, product innovation capabilities and commercial effectiveness, UCI was able to continue to grow and generate value

UCI forecasts only a moderate recovery of the economic cycle starting from 2004 and has assumed a conservative scenario for its 2003-2006 strategic plan

Leveraging on its client-focused organisational model, UCI will grow and create value for shareholders through the implementation of its clearly defined segment-tailored strategies even in a low growth macroeconomic environment …

… being ready to exploit the opportunities arising from an improved scenario

4

8.3%

UCI ORGANISATIONAL MODEL: CUSTOMER DRIVEN DIVISIONALISATION…

(1) Consumer Finance (2) Retail mortgages (3) M/l term corporate financing (4) Leasing

Pekao

New Europe division

Private & AM division

Pioneer

Xelion

Corporate division

UBM

BMC(3)

Locat(4)

Clarima(1)

TradingLab

Retail division

Zagrebacka

KFS

Bulbank

UniBanka

UC Romania

Zivnostenska

45.7% 30.9% 15.1%

Weight on 1H03 Group revenues pre Corporate Centre and elisions

Employees(5) (Jun 2003)o/w Italyo/w New Europe(5)

70,35640,22830,128

Branches(5) (Jun 2003)o/w Italyo/w New Europe(5)

4,5983,2481,350

(5) KFS at 100%

UniCredit Banca per la casa(2)

5

PAY-OUT RATIO FROM 55.2% IN 2002 TO AN AVERAGE

65% IN THE 2003-2006 TIMEFRAME

2002 2006

… LEADING TO SUSTAINED EPS GROWTH, SOUND EFFICIENCY RATIOS AND HIGH PROFITABILITY, WITH SIGNIFICANT VALUE CREATION FOR SHAREHOLDERS …

2002

Revenue growth (mln) 10,284 8.6

Cost/Income, % 54.6 50

Core Tier 1 ratio, % 7.2 6.8-7.2

ROE, % 17.2 21

CAGR 02-06

Op. Income growth (mln)

4,670 11.5

EPS 0.29 14.0

Retail Division 4,728 8.0

Corporate Division 2,734 9.9

Private & AM Division 1,072 10.2

New Europe Division 1,830 8.8

6

Existing customers

New customers

Efficiency Risk mgmtIntra-group synergies

PioneerUBI

UCBUPB

UBMUBI

PioneerUBMTradingLab

Revenue growth

... THROUGH TAILORED STRATEGIES FOR DIFFERENT CUSTOMER SEGMENTS AND GEOGRAPHIES

High importance

Low importance

Corporate business

Private Banking business

New Europe

Retail business

7

AGENDA

Group Highlights

Divisional overview

Private & Asset Management Division

New Europe Division

Corporate Division

Retail Division

8

Retail mortgages

GROWTH FROM BOTH EXISTING AND NEW CUSTOMERS ON THE TOP OF MARKET TREND, WITH PARTICULAR FOCUS ON HIGH GROWTH/HIGH VALUE BUSINESSES, LEVERAGING ON SPECIALISATION

More business with existing customers

Focus on high growth/high value businesses; in particular:

New business from new customers

THROUGH

Quality approach to Small Business thanks to specialisation

Consumer credit

KEY GROWTH DRIVERS FOR THE MARKET: Decreasing households’ savings rates (from 15.8% in 2003E

to 15.3% in 2006E) coupled with higher consumptions leading to a 8.1% 2003-2006 CAGR in total households’ loans1

Alignment to Eurozone averages of weight of retail mortgages and consumer credit on GDP in Italy:

Weight of retail mortgages on GDP in Italy: 12.2% in 2002 vs. 34.7% in Eurozone2

Weight of consumer credit on GDP in Italy: 2.7% in 2002 vs. 8.2% in Eurozone2

2 Source: Bank of Italy and ECB; data calculated taking into account consumer credit granted only by banks (financial enterprises not included)

1 Source: Bank of Italy. Data including only consumer households

9

RESIDENTIAL MORTGAGES: A DEDICATED BANK TO GROW FASTER THAN MARKET

Residential mortgages:Market growth in Italy (CAGR)1

UCI Banca+UBCasa (stand alone): Market share evolution2

2002

2006

~12%

> 15%

+ 25%2002-06E

18.8%

1998-02

LEVERAGING ON:

UB CASA: a dedicated and integrated (production + distribution) “mortgage centre” with a target of ~70,000 new customers for the division by 2006

OUTSTANDING FOR: Product innovation, as a response to more sophisticated and rapidly changing customer needs Processing of mortgage workflows: 3 days on average for response, 20 days on average for

granting Credit scoring systems Multichannel distribution: captive UCI Banca network, proprietary dedicated branches, mortgage

brokers, real estate agent networks (Tecnocasa, FIAIP), PFAs networks, non-captive banking and financial intermediaries

1 Source: Bank of Italy for 1998-2002 data; internal estimates for 2002-2006 CAGR

~10%

UCI Banca+UBCasa (stand alone) Key figures

~21 bn residential mortgages as at 30.6.2003 (+6.4% on year-end 2002)

2 Calculated on total M/L term consumer households’ loans – Source: Internal estimates on Bank of Italy data

~2.9 bn flow of new residential mortgages in 1H03 (1.3 bn in 1Q and 1.6 bn in 2Q, +23% QoQ)

10

ACQUISITION1 OF ABBEY NATIONAL-ITALY: A SUCCESSFUL INITIATIVE TO BECOME LEADER AMONG THE SPECIALISED PLAYERS IN THE DOMESTIC MARKET, PERFECTLY FITTING WITH THE STRATEGIC PLAN

N° of customers: 48,000

Mortgage portfolio2: 3.9 bn

Market Share3 in 2002: 3.2%

Market Share3 Jan-Aug03e: 4.0%

Good asset quality thanks to an efficient in-house-made scoring system: combined analysis of real estate properties value and cash-flow capability of the borrower

Strong multichannel sales approach: 14 branches located in the main Italian

cities 60 Financial Advisors Many distribution agreements with

banks, real estate brokers, PFAs networks and other financial intermediaries

ABNI Key Highlights

2 As at 31 August 2003

1 Acquisition expected to be completed before year-end and subject to approval by the relevant authorities

Wider product range

Enhanced distribution capabilities through:

proprietary branches in key-cities

dedicated alternative channels

Acceleration of growth, becoming: Leader among specialised

players in Italy 4th in the overall domestic

market for flows of new mortgages granted in 2003, with ~5.5% market share

UBCasa + ABNI

3 Calculated on flow of new mortgages granted in the periods

UCI Banca + UBCasa + ABNI

~15% market share in Italy for total outstanding residential mortgages, starting point for additional growth

11

STRONG CONTRIBUTION OF CONSUMER LENDING TO THE DIVISION’S GROWTH …

1 Source: internal calculations on Bank of Italy, Assofin and Eurofinas data for 1995-2002 CAGR; internal estimates for 2002-2006 CAGR

3 MAIN DISTRIBUTION CHANNELSPARTNERSHIPS AND DIRECT MARKETING UCI Banca SPECIALISED

FINANCIAL SHOPS

Key goals:Key goals: Key goals: ~800,000 net acquisitions of

customers from 2003 to 2006

Revolving cards / Total cards ratio higher than 50% (ratio higher than 60% as at 30.6.2003)

Clarima as the “consumer credit specialist” of the Group

Full commercial integration with UCI Banca

Maximisation of UCI Banca customers potential as for credit cards and personal loans (~31,500 Clarima cards out of 1.1 mln Total cards as at 30.6.2003)

Exploitation of a dedicated and alternative distribution channel traditionally strong in Italy

Consumer lending:Market growth in Italy (CAGR)1

Clarima + UCI Banca:Market share evolution

2002

2006

~7.5%

> 9%

+ 20%2002-06E

13.5%

1995-02

LEVERAGING ON:

15-20%

Clarima + UCI Banca: Key figures ~3.8 bn consumer loans as at

30.6.2003 (+10% vs year-end 2002), of which:

~2 bn pure consumer credit ~1.8 bn non-finalised short-term

consumer loans

Focus on “credit at point of sale”

~136,000 clients for Clarima as at 30.6.2003

12

… THANKS TO TAILORED STRATEGIES FOR EACH DISTRIBUTION CHANNEL; FIRST POSITIVE EVIDENCE IN 1H03 RESULTS

STRATEGIC GUIDELINES1H03 COMMERCIAL RESULTS

~45,000 net new clients (from 91,000 as at 31.12.2002 to 136,000 as at 30.6.2003, +49%), of which ~70% from non-captive channels

PARTNERSHIPS AND DIRECT MARKETING

UNICREDIT BANCA

SPECIALISED FINANCIAL SHOPS

New selected partners strong for distribution capability, customer base and brand

Low acquisition costs per client thanks to high integration of product/model with the partner

Share of “revolving clients” on total direct channel new clients >80%

Leverage on cross-selling

Increase of penetration of Clarima cards on UCI Banca customer base

Conversion of UCI Banca “optional” cards into revolving cards

Increased share of wallet of UCI Banca clients (from 18% in 2002 to 31% in 2006) for personal loans

Opening of 9 shops in selected high potential cities in January 2004

Other 15-20 openings starting from 2005

Revolving credit cards/Total outstanding credit cards around 50%, vs 7% as total market average

21,735 outstanding finalised loans as at 30.6.2003 vs 12,250 as at 31.12.2003

~2.7 mln transactions with credit cards in 1H03 vs 1 mln in the whole 2002, accounting for more than Euro 134 mln vs Euro 88 mln in the whole 2002 (+53%)

23 strong partnerships as at 30.6.2003

Significant investments (~2 mln) to strengthen credit scoring systems in 1H03

~Euro 1,200 average outstanding loans per customer1 as at 30.06.2003

1 Calculated on active customers as at 30.6.2003

13

SPECIALISED HIGH QUALITY APPROACH TO SMALL BUSINESS IN ORDER TO INCREASE CUSTOMER PENETRATION AND EXPAND THE CLIENT BASE

Small Business lending: UCI BancaMarket share evolution1

2002

2006

< 7%

> 8%

+ 20%

THANKS TO:

Small Business lending: UCI BancaKey figures

~13 bn loans as at 30.6.2003 (+1.0% on year-end 2002)

~550,000 clients

Launch new segment-focused Imprendo packages

Strengthening of specialised branches

Leverage state of the art credit skills to: grow penetration on existing

customers through specific and targeted credit campaigns (i.e.: Utilizza di Più)

expand the client base – Target: +230,000 customers by year end 2006

~ 103,000 customers involved (minimum Credit line 5,000 Euro)

Good credit quality (top three – out of five – performing loan classes)

Results

Outstanding at 31.01.03

Outstanding at 31.05.03

Target

Campaign Call centre & account rep contact Packaged pricing offer linked to

new credit product Four months time frame starting

01.02.03

1,2 bn

1,4 bn +15%

Leveraging on specialisation to grow penetration: An EXAMPLE – 1st “Utilizza di Più” Campaign2

1 Calculated on loans to sole proprietorships with up to 5 employees (=“Famiglie produttrici”), as a good proxy of the whole SB segment2 A second campaign on other 62,000 clients, started at 28.8.2003 to last until year end, has shown in the first month a 9.6% increase of the

outstanding loans (from 821 mln to 900 mln)

14

AGENDA

Group Highlights

Divisional overview

Private & Asset Management Division

New Europe Division

Corporate Division

Retail Division

15

Strong cooperation between UBI and UBM in order to offer high value

added product and services

Low risk profile, full implementation of Basel II guidelines

Increase the share of wallet of selected existing customers and

acquisition of new customers in selected areas

through the development of a full range of high-value added products in order to become the main financial partner for integrated lending and services

GROWTH IN SME’S MARKET THROUGH SPECIALISED APPROACH AND BETTER PENETRATION OF EXISTING CUSTOMER BASE

16

The total amount of loans of UBI customers, either with UBI or with other banks, represents 76% of total loans

In historical areas3 the lending coverage increases to around 90%

Room for further growth in coverage remains in some rich areas, such as Lombardy, and in some provinces in the North East

UBICore

Clients

TotalMarket

Client coverage

Lending coverage1

Lombardy

Southern Italy

10,248

5,702

…except in Lombardy…

…except in the South2

34,688 29.5%

Total 56,067 117,321 47.8% 76.2%

66.8%

15,821 36.0% 57.5%

1 Lending coverage refers to the amount of total outstanding loans of UBI customers (both towards UBI and other banks) relative to the total stock of outstanding loans on the corporate market.

Source: UBI calculations on internal data and Credit Bureau data

High degree of client coverage

UBI’S CORE CUSTOMER BASE REPRESENTS OVER 76% OF THE BANKING SYSTEM’S TOTAL OUTSTANDING LOANS WITH ROOM FOR FURTHER GROWHT IN LENDING COVERAGE …

Ch. in Lending

coverage1 (Jun03/

Dec02, bp)

+60

+40

-190

2 Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sicily, Umbria3 Emilia-Romagna, Friuli-Venezia Giulia,

Piedmont, Trentino-Alto Adige, Aosta Valley, Veneto

Jun03

17

The top 10% of UBI core customers generates:over 60% of total

outstanding loansover 50% of UBI’s

total revenues over 50% of

commission margins (net of derivatives)

The top 10% is fairly well distributed among large, medium and small enterprises

I Decile 54.5%

Total revenues (%)

Outstanding loans (%)

63.9%

Number of clients

5,607

II Quartile

I Quartile

III Quartile

Total

IV Quartile

76.4%

16.8%

6.2%

0.6%

100%

81.6%

12.8%

4.1%

1.6%

100%

14,017

56,067

14,017

14,016

14,017

Source: UBI calculations on internal data

Revenues concentration

… AND IN REVENUE STREAM GENERATED BY THE NON “TOP 10%” UBI’S CORE CUSTOMERS

1H03

18

FIRST HINTS OF IMPROVEMENT IN LENDING MARKET SHARE IN 1H03

Source: Credit Bureau1 With turnover > 50 mln

(Euro mln)

Largest 42 groups

SMEs

Public sector and others2

Total

Mar03

6,077

6,477

20,802

4,130

37,486

Dic02

4,990

21,489

5,174

39,103

7,450

Jun03

6,545

7,532

22,203

4,754

41,034

UBI % ch. Jun03/Mar03

+7.7

+16.3

+6.7

+15.1

+9.5

Other corporates1

LOANS

Loans to SMEs growing slightly faster than the system: system’s data show an increase of 1% (Jun03/Mar03) against +6.7% of UBI loans to SMEs

Largest 42 groups: increase mainly due to the “Autostrade”and Fidis deals

Share of wallet: 10.6% in 1H03 (from 10.2% in Dec02) in line with our 3 years plan target of 13% and long term target of 15%

2 Mainly financial companies and public entities as defined by Bank of Italy

System % ch. Jun03/Mar03

+4.3

+2.7

+1.0

+3.8

+2.6

19

887

Rel

atio

nsh

ip

ma

na

ger

s

Corporate derivatives total revenues

(Euro mln)

UBI

UBM

% ch.on 1H02

1H03

189

281

+28.8

GROUP TOTAL 474 +29.3

+27.7

Corporate finance 14

Derivatives 64

Foreign services 22

Product specialists

KEY FACTORS FOR A SUSTAINABLE REVENUE STREAM:

Market leadership with a substantial market share

Entry barrier: internal flexible risk management tool able to cater future customer needs

Mastery in risk management recognised by S&P assigning to UBM the same long term credit rating of the group (AA-)

Margin per unit notional not expected to be under further pressure; product innovation will boost margins again

Strict quality control in sales to favour recurrent custom

Target customers in 3 years plan represents approx. 55% of group’s potential customers base (20,000 vs. 36,000)

ORGANISATIONAL MODEL AND PRODUCT INNOVATION AS KEY SUCCESSFUL FACTORS FOR CORPORATE DERIVATIVES BUSINESS GROWTH, THAT CAN BE EXPLOITED IN THE OTHER BUSINESS LINES

Efficient integration between product specialists and relationship managers

20

AGENDA

Group Highlights

Divisional overview

Private & Asset Management Division

New Europe Division

Corporate Division

Retail Division

21

GROWTH THANKS TO FIRST-CLASS PRODUCTS AND SERVICES, LEVERAGING ON STRONG INTEGRATION BETWEEN PRODUCTION AND DISTRIBUTION

Growth from existing customers

Growth from new customers

THANKS TO:

Portfolio optimisation and increased share of wallet with existing customers

Acquisition of new customers leveraging on a widespread presence in attractive areas and on distinctive competitive advantages

Independence of advice

Quality of service

Easiness and proximity to the client

Wide offer with High-Alfa products

Strong distribution capabilities in US and in the “International” business units

Support fron/to UCI’s networks in Italy and new partnerships with third parties

World-class performance thanks to active management

22

WIDESPREAD NETWORK, CONCENTRATED IN THE MOSTATTRACTIVE ITALIAN “PROVINCES”, AND DISTINCTIVE COMPETITIVE ADVANTAGES AS KEY GROWTH DRIVERS

Distribution of the first 36 Italian “provinces” by potential for private banking and presence of specialised competitors

UniCredit PB is present in 59 (out of 103) “provinces”, representing 88% Total Private Banking Financial Assets in Italy

UCI PB COMPETITIVE ADVANTAGES

Focused strategy

Wide-spread presence all-across the country

Deeper knowledge/ understanding of the clients

Wider offer of products/ services

Higher service quality

Superior skills Synergies with other

Group companies Dedicated business model

Source: UniCredit Private Banking Marketing calculations on MagStat data

20%

40%

40%Top 6 prov.

30 prov.

Other prov.

% Private Banking Financial Assets

Attr

activ

enes

s

Com

petit

ion

Ancona

FerraraSavona

MantovaAlessandria

Biella

Lecco

Salerno

Trento

Parma

VicenzaPavia

Palermo

Perugia

Varese

Modena

Firenze VeronaTreviso

Napoli

Genova

Como

Brescia

BergamoBariPadova

Cuneo

Venezia

0%

5%

10%

15%

20%

25%

30%

35%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Potential PB Financial Assets (%)

Fore

ign

orS

peci

alis

ed P

laye

rsin

the

prov

ince

s(%

on

29pl

ayer

s ta

ken

into

acco

unt)

Udine

Cremona

R.Emilia

Novara

Milano (96.6%)

Roma (82.8%)

Torino (34.5%)

Bologna (44.8%)

20%

40%

40%Top 6 prov.

30 prov.

Other prov.

% Private Banking Financial Assets

Attr

activ

enes

s

Com

petit

ion

Ancona

FerraraSavona

MantovaAlessandria

Biella

Lecco

Salerno

Trento

Parma

VicenzaPavia

Palermo

Perugia

Varese

Modena

Firenze VeronaTreviso

Napoli

Genova

Como

Brescia

BergamoBariPadova

Cuneo

Venezia

0%

5%

10%

15%

20%

25%

30%

35%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Potential PB Financial Assets (%)

Fore

ign

orS

peci

alis

ed P

laye

rsin

the

prov

ince

s(%

on

29pl

ayer

s ta

ken

into

acco

unt)

Udine

Cremona

R.Emilia

Novara

Milano (96.6%)

Roma (82.2%)

Torino (34.5%)

Bologna (44.8%)

Source: UniCredit Private Banking Marketing calculations on MagStat data

20%

40%

40%Top 6 prov.

30 prov.

Other prov.

% Private Banking Financial Assets

Attr

activ

enes

s

Com

petit

ion

Ancona

FerraraSavona

MantovaAlessandria

Biella

Lecco

Salerno

Trento

Parma

VicenzaPavia

Palermo

Perugia

Varese

Modena

Firenze VeronaTreviso

Napoli

Genova

Como

Brescia

BergamoBariPadova

Cuneo

Venezia

0%

5%

10%

15%

20%

25%

30%

35%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Potential PB Financial Assets (%)

Fore

ign

orS

peci

alis

ed P

laye

rsin

the

prov

ince

s(%

on

29pl

ayer

s ta

ken

into

acco

unt)

Udine

Cremona

R.Emilia

Novara

Milano (96.6%)

Roma (82.8%)

Torino (34.5%)

Bologna (44.8%)

20%

40%

40%Top 6 prov.

30 prov.

Other prov.

% Private Banking Financial Assets

Attr

activ

enes

s

Com

petit

ion

Ancona

FerraraSavona

MantovaAlessandria

Biella

Lecco

Salerno

Trento

Parma

VicenzaPavia

Palermo

Perugia

Varese

Modena

Firenze VeronaTreviso

Napoli

Genova

Como

Brescia

BergamoBariPadova

Cuneo

Venezia

0%

5%

10%

15%

20%

25%

30%

35%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%

Potential PB Financial Assets (%)

Fore

ign

orS

peci

alis

ed P

laye

rsin

the

prov

ince

s(%

on

29pl

ayer

s ta

ken

into

acco

unt)

Udine

Cremona

R.Emilia

Novara

Milano (96.6%)

Roma (82.2%)

Torino (34.5%)

Bologna (44.8%)

VS Foreign players:

VS National domestic players:

VS Local domestic players:

23

1H03 RESULTS FULLY CONSISTENT WITH THE PLAN TARGETS; ING PROVIDING ADDITIONAL SALES CAPACITY AND PERFECTLY FITTING WITH THE COMPANY STRATEGY

(1) Pro-forma including data of “former Xelion”, UniCredit Banca and OnBanca(2) Among top-players for Total AUMs as at 30.6.2003; 5th taking into account all the Italian players(3) AM Products: Mutual Funds + Sicav + Segregated Accounts + Insurance products

Total Fin. Assets

31.12.2002Pro-forma1

30.6.2003

4,883 5,988

+23%~9,600

30.6.2003 Pro-forma with ING

ING

(Euro mln) Total Financial Assets 23% up vs 31.12.2002

Weight of AM products3 from 70.5% as at end of March to 71.1% as at end of June (+68 bp)

ING ADDS: ~Euro 3.6 bn Financial Assets (of which more than 90% in AM

products3), making Xelion the 5th asset gatherer in Italy by Fin. Assets

PFAs

31.12.2002Pro-forma1

30.6.2003

1,833 1,610

-223

~2,360

30.6.2003 Pro-forma with ING

ING

Streamlining of the Network:

750 PFAs, reinforcing Xelion’s 5th position among Italian PFAs networks

ING ADDS:

Exit of “marginal” PFAs (Euro 1.36 mln Average Tot. Financial Assets of lost PFAs)

Recruitment of 125 new PFAs, generating on average Euro 2.9 mln net sales in 1H03

Net Sales

1H02Pro-forma1

1H03

5701,008

+77%

1H03Pro-forma with ING

ING~1,300

(Euro mln)

Net sales 77% up YoY, ranking Xelion 1st in Italy for Total Net Sales in 1H03 (around 15% market share) and 2nd for Net sales per PFA2

Improving QoQ trend (Euro 521 mln in 2Q vs Euro 487 mln in 1Q), with increasing weight of AM products3 (83.2% in 2Q vs 67.8% in 1Q)

ING ADDS:

Important additional sales capacity (~Euro 300 mln in 1H03)

Fin. Assets per PFA (Euro mln)

2.7 3.7~4.1

24

STRONG NET SALES, TOP-CLASS PERFORMANCESAND FOCUS ON HIGH VALUE ALTERNATIVE INVESTMENTS: THREE MILESTONES TO MEET THE PLAN TARGETS

1 Including Momentum2 Data already included in the other business areas3 Oak Ridge Large Cap Equity Fund (5 stars from Morningstar) and Oak Ridge Small Cap Equity Fund (4 stars from Morningstar)

(Euro mln)

Alternative Investments2 470

2003 Net Sales

(Jan-Aug)

2,064

Total AuMs as of

31.08.2003

Italy 2,327 85,351 +5.7

TOTAL PIONEER 6,767 114,870 +10.8

+36.1

International (ex-Italy)1 996 5,064 +35.4

% Ch. of AuMs on

31.12.2002

906 2,413 +58.4New Europe

US

US in USD

2,538

2,819

22,042

24.085

+24.8

+30.0

Standard and Poor's Fund Rankings 2002 – Funds sold in Europe

(Number of funds of different categories with top 10 rankings by Asset Manager)

0123456789

10

JP M

org

an

PIO

NE

ER

UB

S

Fid

elit

y

Mer

rill

Lyn

ch

Dex

ia

Pic

tet

Vo

nto

bel

Tem

ple

ton

AX

A

Cre

dit

Su

isse

Cre

dit

Ag

rico

le

BN

P P

arib

as

Ru

ssel

l

ING

Bar

ing

Excellent +36.1% growth of Hedge Funds vs Dec. 2002, with increased weight on Total AUMs (1.8% vs 1.5% as at Dec. 2002) in line with the plan growth path (3.6% as at year end 2006)

Acquisition from Oak Ridge Investments of 2 growth funds totalling around USD 24 mln and with high Morningstar ratings3, in order to complete the product range adding 2 quality growth funds to Pioneer’s strong reputation in value funds

~11% AUMs growth in the first 8 months of 2003, in line with the plan target (+12% 2003-2006 CAGR)

77

2003 Perf. effect

(Jan-Aug)

2,265

4,415

327

-16

1,839

2,741

25

AGENDA

Group Highlights

Divisional overview

Private & Asset Management Division

New Europe Division

Corporate Division

Retail Division

26

GROWTH LEVERAGING ON THE OPPORTUNITY OF AN UNDERPENETRATED BANKING SYSTEM AND ON UCI’S EXPERIENCE

CLEAR LEADER BANKS1: profitability growth and consolidation of existing position

RISING LEADER BANKS2: quick and healthy market share growth

Focus on most profitable (golden) customer base: Private, Affluent and Small Business through offer of new value added products (i.e. AUM) to existing clients and new customer acquisition

Selective approach for Large Corporate (except Bulgaria); cost control and cross-selling for mass market; no significant customer base increase is expected

Aggressive new customer acquisition campaigns for both Retail and Corporate through enlargement of golden customer base with final goal of being in the “top 5” of the market

Development of a common advanced product shelf, creation of joint factories and implementation of tailored segment service models supported by homogeneous IT systems and applications

Future growth driven mainly by organic growth (with some potential acquisitions)

Positive gap of New Europe in terms of GDP growth, compared to EU market, both in the recent past and in the forthcoming period

Different strategic focus with:

1 Pekao, Zaba and Bulbank2 UniBanka, KFS, UCR and Zivno

Improvement in risk management and efficiency

27

UCI IS PRESENT IN MAJOR NE COUNTRIES WITH SIGNIFICANT SCOPE FOR GROWTH IN A STILL UNDERDEVELOPED RETAIL MARKET

Weight of country’s GDP on Total NE area

GDP in 2002 (%)

27.4Turkey

10.0Hungary

10.5Czech Rep.

3.6Slovakia

3.3Slovenia

3.4Croatia

28.3Poland

Leading position of UCI in Poland, main country in NE area for GDP

GDP growth in NE +4.6% (cagr 03-06)

1 Poland, Croatia, Hungary, Estonia, Slovenia, Czech Rep. Turkey, Latvia, Bulgaria, Romania, Slovakia, Lithuania

2 2001 figures

Share loans retail over total loans

(Loans+Deposits)/GDP Cards per ths inhabitants2

66%

224%

NewEurope1EU

52%

EU NewEurope1

29%

1,280

EUNew

Europe1

349

BANKING PENETRATION in 2002

Mortgages and consumer credit expected to be the key retail products

Lower weight of Asset Management, expected to partially substitute deposits

45.0

UCI’s 3 Italian Banks

UCI’s NE banks

34.8

Non Interest Income/Total revenues in 1H03 (%)

Life Insuran.

Pension Funds

Mutual Funds

Retail Bank Deposits 43%

14%

14%

29%

EU3

87%

5%4%

4%

New Europe4

Breakdown of retail financial assets

3 2001 data considering France, Germany, Italy, Spain and UK as proxy for EU

4 Countries with UCI’s presence

2.4Bulgaria

Romania 6.8

4.3Baltics5

702NE GDP (bn)

5 Lithuania, Latvia, Estonia

28

To extend financial product offer in order to guarantee portfolio diversification

To introduce product innovation in order to meet customer needs in term of security and yield

To complete financial products offer with a segmented insurance offer with a particular focus on Life insurance

STRENGTHENED SYNERGIES WITH INVESTMENT AND INSURANCE PRODUCT PROVIDERS IN NEW EUROPE

Mission Activities

Pioneer market leader in Poland with around 25% market share

Bulbank first bank to distribute foreign mutual funds in Bulgaria

Distribution or advisory agreements in place or under discussion (UCR and KOC) with NE Banks and group local Asset Managers

TLAB - UBM

Launch of structured TD (capital and minimum yield guaranteed) in Pekao, Unibanka and Zaba and negotiations in progress in the other Banks (Bulbank and Koc)

Innovative product launched with strong success in different forms (also linked to Pioneer funds)

PIONEER

BANCASSURANCE Pekao best life

insurance seller in Poland thanks to the Unit linked products

Pre-joint venture agreement in Poland (with Pioneer asset manager) and distribution agreements for life and non life products in place (Unibanka, Bulbank, Zaba, Koc) or under discussion in the other Banks

29

44.0%

SUCCESSFUL ACHIEVEMENT IN THE FIRST HALF 2003 WITH HIGH GROWTH IN AUM AND DECREASED COST OF RISK

VOLUMES (at unchanged FX)

Assets under Management1 (Euro bn)

1 New Europe business area of Pioneer

Dec02 1H03

2.01.5

+34.4%

BP target

Higher Gross Loans on Deposits ratio to 67.2% in 1H03 (from 58.4% in 2002) well on track to achieve 2006 target (72.7%)

3 KFS 100%

2 Excluding the impact of 2002 extraordinary provisions

1882

158

DECREASING COST OF RISK:Net Provisions/Net Loans (bp)

Employees3

28,18831,006 30,128

119

2002 1H03 2006

COST OF RISK AND EFFICIENCY

2002 1H03 2006

14.8%

Gross Loans (Euro bn)

Dec02 1H03

14.113.8

+2.4%

CAGR 02-06

8.7%

Deposits (Euro bn)

Dec02 1H03

21.021.1

-0.5%

CAGR 02-06

CAGR 02-06

2006 REVENUE TARGETS

TOTAL REVENUES: +8.8%

(cagr 02-06)

Corporate

17.7%

Retail

11.3%