Fixed Income Presentation Milan May 12 th , 2017
Disclaimer This Presentation may contain written and oral “forward - looking statements”, which includes all statements that do not relate so lely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of UniCredit S.p.A . (the “Company”). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the “Other Countries”), and there will be no public offer of any such securities in the Unite d States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Francesco Giordano, in his capacity as manager responsible for the preparation of the Company’s financial reports declares that the accounting information contained in this Presentation reflects the UniCredit Group’s documented results, financial accounts and accounting records. This Presentation has been prepared on a voluntary basis since the financial disclosure additional to the half-year and annual ones is no longer compulsory pursuant to law 25/2016 in application of Directive 2013/50/EU, in order to grant continuity with the previous quarterly presentations. The UniCredit Group is therefore not bound to prepare similar presentations in the future, unless where provided by law. Neither the Company nor any member of the UniCredit Group nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it. 2
Agenda UniCredit at a glance 1 1Q17 results update 2 Transform 2019 update 3 Capital position 4 Funding & Liquidity 5 Concluding remarks 6 Annex 7 3
UniCredit, a G-SIBs with a strong capitalisation and a solid recurring profitability thanks to cost and risk levers firmly under control 1 2 3 4 5 6 7 Significantly strengthened capital position through asset disposals and successful € 13 bn capital increase Well-diversified franchise in Western Europe and CEE maximizing commercial banking value Active balance sheet de-risking resulting in higher coverage ratio to address asset quality legacy. New coverage translates into a Non Core credit portfolio positioned to sell Cost discipline and efficiency measures to significantly reduce cost income ratio and transform operating model/business processes to a sustainable lower cost structure Lean but steering corporate center to drive Group-wide performance and ensure accountability 4
UniCredit: a Pan European Commercial Bank with inherent competitive advantages 1 2 3 4 5 6 7 25 million clients (1) Commercial Banking model delivering unique Western, Central and Eastern 78% revenues from Commercial European network to extensive Retail and Corporate client franchise Banking (2) Commercial Banks with leadership "One Bank" business model replicated across full network, driving synergies and position (3) in streamlined operations 12 out of 14 countries (4) Low risk profile business model benefiting from diversification and a more stable 94% revenues in EU national/regulatory environment 57% outside Italy (5) € 3 bn CIB plugged into Commercial Banking , enabling cross-selling and synergies across joint CIB-Commercial Banking business lines and countries revenues (6) 1. Data as of 1Q17, includes 100% clients in Turkey 2. Data as of 1Q17, CBK Italy, CBK Germany, CBK Austria, CEE. 3. Data as of FY16, ranking between #1 and #5 of market share in terms of total assets according to local accounting standard 4. Italy, Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herz., Serbia, Russia, Romania, Bulgaria, Turkey 5. Data as of 1Q17 based on regional view. 5 6. Data as of FY16 Includes revenues on GTB, ECM, DCM, M&A, Markets products from Commercial Banking clients and structured financing products from Corporate clients. Sources: for total assets, central bank statistics, if available, or local company reports
Strong competitive advantage across countries and products 1 2 3 4 5 6 7 Strong local "Go to" bank for European "Mittelstand" Best in class Commercial Bank Corporates CIB products provider # clients, m (1) Rank by assets in Loans to corporate in EU zone, € bn (3) EMEA ranking (5) Europe (2) Italy 2 8.8 EMEA Bonds in Euro by # of Peer 1 1 transactions (6) Germany 1.6 3 Austria 1.7 1 Syndicated Loans in Italy (7) 1 UniCredit CEE 13.2 1 Syndicated Loans in Germany (7) 1 Revenues by geography (4) Peer 2 CEE Syndicated Loans in Austria (7) 1 21% Peer 3 Awards 43% Italy Austria 9% Peer 4 European Trade Finance Power House (8) 27% 5 Stars for Cash Management in Peer 5 Germany Western Europe and CEE (9) 1. Data as of 1Q17, includes 100% clients on Turkey 2. Data as of FY16, for Austria domestic assets as of end of 2015 on local GAAP (source OeNB), for Germany only private banks; for CEE compared to Erste, KBC, Intesa Sanpaolo, OTP, RBI, Société Générale (data as of 2015). 3. Data as of 1Q17; peers includes: BNP Paribas, Deutsche Bank, Intesa Sanpaolo, Santander, Société Générale. 4. Data as of 1Q17 based on Regional view. 5. Data from league tables as of 1Q17. 6. Source: Dealogic Analytics, per 3 April 2017. Period: 1 Jan – 31 March 2017. 7. Source: Dealogic Analytics, per 3 April 2017. Period: 1 Jan – 31 March 2017. 8. Source: 6 EuroMoney Trade Finance Survey 2017. 9. Source: EuroMoney (http://www.euromoney.com/Article/3650987/Category/0/ChannelPage/207399/Five-Star-Cash-Managers-2017-When-quality-not-quantity-counts-in- cash-management.html).
Agenda UniCredit at a glance 1 1Q17 results update 2 Transform 2019 update 3 Capital position 4 Funding & Liquidity 5 Concluding remarks 6 Annex 7 7
Net profit € 907m in 1Q17, up by 40.6% Y/Y thanks to resilient recurring revenues and cost excellence 1 2 3 4 5 6 7 Resilient recurring revenues thanks to strong business focus: net interest at € 2,564 m, in line with projections, and fees at € 1,481 m (+4.5% Y/Y) Operating costs reduced by 3% Y/Y thanks to Transform 2019 actions LLP down by 11.8% Y/Y at € 670 m with cost of risk at 60bp (-11.5% Y/Y) Focus on Non Core de-risking, with NPE further down by 1.8% Q/Q, confirming positive AQ trends Net profit at € 907 m, up by 40.6% Y/Y adjusted, with gross operating profit +14.6% Y/Y and net operating profit +36.1% Y/Y Solid CET1 ratio at 11.45% fully loaded after successful € 13 bn right issues, above 12% considering Pioneer & Pekao disposals and RWA dynamics expected in 2017 Transform 2019 execution on track, delivering tangible results 8
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