Global Lean, Six Sigma and Business Improvement SummitOrlando, October 2008

Lean Six Sigma Applications in aGlobal Enterprise, Global Services

and Multiple Locations

Fabrizio MajoranaChief Quality Officer

UNICREDIT GROUP

UNICREDIT HAS SYSTEMATICALLY OPTED FOR BREAKTHROUGHS, ENABLING IT TO ACHIEVE EXCELLENT RESULTS …

CONSOLIDATION SELECTIVE GROWTH

Reorganization of the Group’s customer service model (segmentation) and the introduction of new incentive systems

Integration of seven banks, centralization of IT systems and back office activity, start of international acquisitions

Completion of process of creating internal divisions, continued expansion into international markets with HVB and BA-CA, strengthening of domestic markets with Capitalia

Excellent operating performance: EPS rose at annual rate of 31.4% from 1994 to 2006Efficiency gains: cost/income ratio reduced by 29 pp from 1994 to 2006

Privatization Federal Group S31

Central and Eastern Europe (CEE)

Pioneer Investments

1993 1998 2001 2005 2007

1

CAPITALIAHVB BA-CA

TURNAROUND

Employees: over 170,000

Customers: over 40 million

Branches: over 9,000

Banking operations in 23 countries

International network spanning 50 countries

Global player in asset management: € 270 bn3 in managed assets

Strong regional player in Investment Banking with leading position in CEE

UniCredit Group – at a glance

… AND TO BECOME A MAJOR BANKING GROUP …

2

UNICREDIT HAS A CLEAR INTERNATIONAL PROFILE BASED ON A STRONG EUROPEAN IDENTITY …

Retail24.2

Italian Core20.0

Other Core12.7

Other Institutionals17.4

US Institutionals11.5

UK Institutionals14.1

UniCredit Shareholder Structure (%) UniCredit Employees by Nationality (%)

Other17.1

Poland15.2

Germany14.4

Turkey8.8

Austria7.1

4

Italy37.4

… AND BENEFITS FROM A WELL BALANCED REVENUES MIX BOTH BY BUSINESS LINES AND BY GEOGRAPHIES

By business lines8 (%) By geographies8 (%)

Consolidated Total Revenues7

Commercial bankingstill the bulk of our business

Group’s operations stronglyfocused on international markets

5

Retail32.9

Corporate20.8

Private4.6

MIB13.5

CEE9

22.7

Austria11.6

Germany26.7

CEE9

22.7Italy 39.0

AM5.6

EUROPEAN NETWORK

Countries where the Group operates via its own branches, representative offices, small banking subsidiaries, or investment centers (Pioneer)

Countries where the Group operates via local banks controlled or in which it has a significant equity interest

12

CZ: UniCredit Bank

HU: UniCredit Bank

PL: Bank Pekao

RO: UniCredit Tiriac Bank

RU: UniCredit Bank

SK: UniCredit Bank

SLO: UniCredit Bank

SRB: UniCredit Bank

TJ: ATF Bank

UA: UniCredit Bank Ukrsotsbank

TK: Yapi Kredi

DE: HypoVereinsbank IT: UniCredit

AZ: Koçbank Azerbaijan

Baltics: UniCredit Bank

BIH(20): HVB Central Profit Banka UniCredit Zagrebačka banka Nova Banjalučka Banka

BG: UniCredit Bulbank

AT: Bank Austria

KZ: ATF Bank

KS: ATF Bank

CRO: Zagrebačka banka

UNICREDIT CAN RELY ON A STRONG COMPETITIVE ADVANTAGE COMING FROM ITS BUSINESS MODEL BASED ON SPECIALIZATION …

DIVISIONAL DIVISIONAL MODELMODEL

Global business lines –Retail, Corporate, Private,

Investment Banking and Asset Management – characterized

by service modelsaimed at maximize

customer satisfaction

Specialized product factories on global scale

– consumer credit,mortgages and leasing –

Centralization of support services

to all Group’s divisions– ICT and back office

activities –

9

Multi-local approach – local banks responsible for

running the branch network and the

relationship with customers

The seven key objectives

CorporateCorporateObjectivesObjectives

Reduce bureaucracy

Reduce Lead-Time and Operational Cost

Satisfy Customer Expectations

Streamline Outsourcing Processes

Manage Multiple Locations and Global Operations

Increase Visibility of Business Performance to Stakeholder and Shareholder

Streamline Near Shoring Processes

Nearshoring and Global Operation

We use Lean Sigma to streamline the hand over process and minimize inconveniences, complicacy, delays, waste, overburden, overproduction etc.

Organize hand over while meeting customers’ expectations

save money by exploiting low cost high skill near countries

Manage Global Operations

• Business are now involved in international operation.

• It is critical to harmonize processes that are cross functional and based in different countries.

• Globalization have changed traditional business practices.

• We must factor global business into plans, processes and strategies.

World is shrinking.

Businesswithout boundaries

How Lean Six Sigma can benefit Mergers and Acquisitions

• Companies often grow and enter new markets by acquiring or merging.

• The challenge is to bring uniformity to the varied facilities without destroying the uniqueness and competitive edge.

• A natural consequence is the need to gain visibility.

• Lean Six Sigma projects help overcome those difficulties because you put people from different department and countries share knowledge and improvement objective.

DataInformationKnowledgeWisdom

Increase Visibility

• Today’s environment demands faster responsiveness.

• In this environment, being ignored by the market is one of the greatest threats to a company’s success.

• Lean six sigma teaches how to anticipate change and how to be responsive to make change an ally

• This responsiveness give a better visibility towards shareholder and stakeholders

UniformityVs.Change

StandardizationVs.Flexibility