MARKETS

MARKETS & INVESTMENT BANKING DIVISION

S. Ermotti

Head of MIB Division

2

AGENDA

MIB - Our First Year Of Business Operation

CEE - Capturing And Developing The Opportunity

3

WITH A CLEAR STRUCTURE AND GOVERNANCE,…

Retail Division

Corporate Division

Private BankingAsset Management

Division

Poland's MarketsDivision

CEE Division

Global Banking Services Division

Markets &Investment Banking

activities of CEE banks

incl. activities of former

UniCredit Group

Markets & Investment Banking

Division

Markets & Investment Banking DivisionErmotti

Markets & Investment Banking DivisionErmotti

CMROBanks

CMROBanks

COOErmischCOO

Ermisch

Investment BankingSpezzotti, Weimer

Investment BankingSpezzotti, Weimer

MarketsHemetsberger

MarketsHemetsberger

Principal InvestmentsSeilheimer

Principal InvestmentsSeilheimer

4

Structured Derivatives

Leveraged Finance

Project Finance

Euro / CHF Debt

CEE Equities

M&A in CEE

Research

…STRONG GEOGRAPHICAL REACH AND PRODUCT CAPABILITIES,…

SingaporeHong kong

Tokyo

Moscow

London

MUNICHVIENNA

MILAN Istanbul

Warsaw

New York

Moscow

39 offices and ~ 3,300 employees

5

…AND A CLEAR DEFINED OPERATING MODEL.

MIB overlay structure fully implemented.

Target Operating Model and IT – implementation phase started.

Integration of international branches to reduce existing overlaps between legal entities – nearly finalized.

Integration of UBM into HVB successfully completed as of 1 April 2007.

Bundling of BA-CA’s MIB business activities in one Austrian subsidiary.

Strengthen MIB as an organization - brand, people, culture.

Capital management function harmonized to enhance overall capital efficiency.

Extension of MIB’s operating model into CEE.

eur mn

2/3 of cost savings already achieved by the end of 2007

2007f 2008 expected

cost savings

200

140

6

MIB IS FULLY ON TRACK TO ACHIEVE ITS 2008 TARGETS…

(1) MIB Division in % of 2006 UniCredit Group total

MIB contributes strongly to value creation 1

EVA

Capital

Revenues

23%

15%

14%

REVENUES

COST / INCOME RATIO

PRE-TAX PROFIT

RWA and ROE

eur mn

%

eur mn

eur mn ROE b/tin %

3,192>4,000

2006 2008t

1,602>2,000

2006 2008t

49.0% <50.0%

2006 2008t

63,058 ~65,000

42.9%50.0%

2006 2008t

7

…WITH A SOUND RISK PROFILE...

TOTAL EXPOSURE BY INVESTMENT CATEGORIES

Note: Data based on Total Exposure at default (BIS II logic) as of 31 March 07

Investment grade>72%

Defaulted<1%

Non-investmentgrade27%

Customer driven>80%

Prop. driven< 20%

In 2006, more than80% of revenues were customer driven:

Value at Risk (one-day | 99%)

(1) Based on standalone models (not harmonized internal models) and before diversification

20051 Integrated VAR2006 (eop)

Diversification benefit

2330

~ -6

eur mn

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… AND A BALANCED BUSINESS PORTFOLIO.

BREAKDOWN OF 2006 OPERATING REVENUES

REVENUES BY BUSINESS LINES 2006(total return view)

Equities 20%

FICC 30%

Origination & Advisory 39%

Structured Credit 12%

Financing 61%

Structured Derivatives 38%

InvestmentBanking

32%

Markets68%

9

KEY STRATEGIC PRIORITIES (1)

MARKETS

FICC: Achieve above market growth by further enhancing our rates business and special focus on FX cash, plain vanilla and exotics to improve services to corporate and institutional clients.

Structured Derivatives: Maintain our strong and well diversified European market position in structured equity products and further develop rates.

Equities: Maintain our strong market position in CEE and further build-up our German and Italian business.

Structured Credit: Significantly expand our capabilities across all products and leverage on UniCredit’s balance sheet transformation program.

Markets68%

10

KEY STRATEGIC PRIORITIES (2)

Develop a top-tier Investment Banking position in core markets.

Financing:Complete footprint in Europe for acquisition and project financeExpand the private equity business

Origination & Advisory :Deepen our position in Corporate Finance with key clientsLead in cross-border M&A within core marketsEnhance our structuring and securitization capabilities

INVESTMENT BANKING

IB32%

11

AGENDA

MIB - Our First Year Of Business Operation

CEE - Capturing And Developing The Opportunity

12

Russia an Poland are more than 50% of 2006 revenues

eur mn

Russia~40%

CEE: CAPTURING AND DEVELOPING THE OPPORTUNITY

Poland~15%

(1) Rest of CEE including Slovakia, Bulgaria, Romania; Croatia, Slovenia, Latvia, Lithuania and Estonia - excluding Turkey and Ukraine with approx. EUR 3-4 bnof additional revenues

Source(s): BCG Database and internal analysis.

2006 CEE WHOLESALE REVENUE POOL

4,600

1,500

2,900

11,200

1,0001,200

Total CEE Russia Poland Czech Rep. Hungary Rest of CEE(1)

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M&A In CEE By Number Of Deals – 109 DealsMergers & Acquisitions 2006

DeloitteUniCredit Group

E&Y Transaction Adv.Rothschild

Dundas UnluPricewaterhouse Coopers

JP MorganMerrill Lynch

KPMG Corp.Fin.Raiffeisen Investment AG

No. of deals201812101098886

M&A In CEE By Volume – € 57.4bnMergers & Acquisitions 2006

RothschildJP Morgan

E&Y Transaction Adv.Merrill Lynch

DeloitteUniCredit Group

Raiffeisen Investment AGPricewaterhouse Coopers

Dundas UnluKPMG Corp.Fin.

Source: MergerMarket; includes Turkey

EUR bn15.39.47.56.86.84.43.02.40.90.9

CEE Equities By Volume – € 13.0bnEquity Capital Markets 2006, Bookrunner CEE

Morgan Stanley Deutsche Bank

UniCredit GroupCredit Suisse

UBSMerrill Lynch

INGTroika Dialog

Bank Millennium SAInternetowyDom Maklerski SA

Source: Dealogic

EUR bn2.92.82.01.51.00.90.70.70.40.1

CEE Equities By Number Of Deals – 109 DealsEquity Capital Markets 2006, Bookrunner CEE

Bank Millennium SAUniCredit Group

Deutsche BankING

Troika DialogMorgan Stanley

InternetowyDom Maklerski SACredit SuisseMerrill Lynch

UBS

No. of deals231715

9888876

…WHERE MIB HAS ALREADY A LEADING MARKET POSITION.

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rest of CEErest of CEERussiaRussiaPolandPoland

LEVERAGING MIB PRODUCT CAPABILITIES INTO THE CEE NETWORK

Exploit the demand of our clients for Investment Banking products

Implement MIB’s business model and overlay structureLeverage on the strong local market positions and MIB’s capabilitiesEnsure effective cross-selling through close cooperation and common goals

Ability to keep and attract key people

OBJECTIVES:

FIRST WAVE COUNTRIES ARE:

Implementation phase Starts in Q3 2007Implementation phase

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WHOLESALE BANKING REVENUES POLAND

CAPTURE THE OPPORTUNITIES IN POLAND…

~1,500

>2,400CAGR10%

eur mn

Loans(3)

Financing(2)

Trading & SalesAdvisory(1)

(1) Includes M&A, ECM and DCM(2) Includes Factoring, Leasing, Structured finance and Working capital(3) Includes commercial and credit facilities, consumer credit, credit cards, mortgages and overdraft Source: BCG database and internal analysis

POLAND SHOWS A VERY POSITIVE FUTURE OUTLOOK

…with expected key areas of growth: M&A and Corporate Finance, ECM and DCM(origination), Trading & Sales as well as Loan business.

…which will clearly allow MIB to strengthen its market position as the pre-eminent player in Poland.

180

840

340130

2006 2011e

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...WHERE WE START FROM A POSITION OF LEADERSHIP.

(1) Includes placements co-led with PKO BP, Deutsche Bank, Bank HandlowySource: WSE; Rzeczpospolita; Fitch; UniCredit; McKinsey

IPO/SPO

2006 data

Volume IPO+SPOsPLN bn

Number of transactionsUnits

1. UniCredit Group2. ING3. DM Millennium4. BDM PKO5. DM BZ WBK6. IDM SA7. DM BOŚ

4,5701,569

540430356331250

237588

137

Trading

2006 data

Turnover on the share marketPLN bn

Market share%

1. UniCredit Group2. DM BZ WBK3. DM BH4. ING Securities5. PKO BP6. DI BRE Banku7. KBCMARKET TOTAL

82.137.935.734.422.219.816.0

323.9

25.411.711.010.66.86.14.9

Commercial paper debt market

2006 data

Volume outstandingPLN bn

Market share%

1. UniCredit Group2. Bank Handlowy3. BRE Bank4. PKO BP5. ING BSMARKET TOTAL

3.22.11.71.51.5

12.8

24.816.113.111.811.7

Corporate bonds market

2006 data

Volume outstandingPLN bn

Market share%

1. UniCredit Group(1)

2. Pekao/PKO BP/DB3. BRE Bank4. PKO BP5. Bank Millennium/DB/West LBMARKET TOTAL

3.81.51.10.90.88.8

42.716.913.010.48.6

POLAND – 2006 LEAGUE TABLES

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POLAND: FUTURE OPERATING MODEL IS BASED ON A DUAL PLATFORM

T O

D A

Y

UniCredit CA IB Bank BPH Pekao

"Original" UniCredit IB unitfocusing on Investment Banking business and institutional equities

Trading, sales and custody services, as well as DCM and financing for corporate clients

Trading, sales and custody services, as well as DCM and financing for corporate clients

InstitutionalBrokerage and investment banking services to institutional clients

RetailBrokerage services to retail clients

Regional investment banking (corporate finance, M&A, ECM)

Equities, including retail flow execution

MIB-related research

Sold

New UniCredit CA IB

CDM

FICC tradingCustodyInstitutional and corporate distributionStructured credit/DCMLoan syndicationFinancing

New Pekao MIB Division

MIB POLAND

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RUSSIA WILL CONTINUE TO BE THE MOST ATTRACTIVE GROWTH MARKET

Corporate loans (outstanding volume)

Euro bonds and domestic bonds new issues

Global IPOs

Selective Examples For Russian Growth Potential (eur bn)

CAGR

2,600

~5,300

(1) Market correction assumed for one yearSource(s): BCG Global Revenue Pool Model; Economic Intelligence Unit; Expert interviews; BCG analysis

INVESTMENT BANKING REVENUES RUSSIA

Pure IB product-related view

CAGR~15%

eur mn

78115

146

221

2003 2004 2005 2006

11 1628

63

2003 2004 2005 2006

5

16

0 0.4

2003 2004 2005 2006

+42%p.a.

+79%p.a.

>100%p.a.

1,900

500200

~3,000

~1,800

~500

2006 2011e

Trading & Sales

Advisory 1Struct. Finance

Corporate clients still underleveraged.Significant upside with institutionals business.Growth of high margin products:

Increased M&A activity,need for equity injection to fund growth, increasing replacement of bank loans by bonds,increased infrastructure / real estate investments,continued LBO business, growing investments in equity derivatives,…

Russia is a key growth market and MIB should outgrow the market.

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ATON: A RECOGNIZED AND ESTABLISHED MARKET LEADER IN RUSSIA

One of the largest Russian equities broker by traded volumes with 15 years proven track record.With some 180 professionals located in Moscow, London and New York, Consistently ranked within:

- Top 3 domestic investment banks- Top 5 investment banks worldwide for Russian equities sales, trading and research

Developing business with focus on high quality mid-cap and small-cap segment of the market, Expansion of derivatives, equity financing and fixed income business.

BREAKDOWN OF 2006 REVENUES

IB & Capital Markets 13%

70% Equities

FX 16%

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Aton Int. Ltd

Closing expected for Q3 2007.

Cash EquitiesFI, ECMM&A

T O

D A

YRUSSIA: FUTURE OPERATING MODEL ACTING ON A DUAL PLATFORM -BASED ON A STRONG COMBINED MARKET POSITION 2006

IMB

FX, MM/Repo

Syndicated lending

Vanilla Credit

Cash Equities

selective FICC

ECM

M&A, Advisory

UniCredit ATON

FICC CustodyInstitutional and corporate distributionDCM, SecuritizationLoan syndicationFinancing

UniCredit Bank MIB Division

2006 MIB Revenue Rankingpro-forma

MIB RUSSIA

Source(s): McKinsey, pro-forma revenue base includes fees and capital markets, but does not include lending interest income and custody business.

Competitor IV

UniCredit Group

Competitor III

Competitor II

Competitor I

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SUMMARY

Clear structure and governance, fully integrated in the division-based organizational model of UniCredit Group.Strong financial performance - more than “Sum-of-the-parts“.Balanced business portfolio with a sound risk profile.Focus on Group’s geographical reach and product capabilities in high profitable segments.Growth of revenues by leveraging existing strength and capitalize on the unrivaled reach in CEE.

Targeted revenues of € 4bn.Achieving a pre-tax profit of more than € 2bn.No substantial increase of our risk profile.Further strict cost management.

A LEADING EUROPEAN REGIONAL SPECIALIST

FULLY ON TRACK TO ACHIEVE OUR 2008 TARGETS

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Breeze II

EUR 470,000,000Structured Bond

Transaction

Sole Bookrunner2006

Porsche

EUR 1,000,000,000Corporate Benchmark

BondJoint Lead Manager

& Bookrunner2006

Rosneftegaz

EUR 8,500,000,000IPO

Co-lead Manager2006

Avio

EUR 2,100,000,000Debt Facilities

Mandated Lead Arranger2006

MAN Roland

EUR 830,000,000ALF Transaction

Sole Mandated LeadArranger & Bookrunner

2006

Kion

EUR 3,300,000,000LBO

Mandated Lead Arranger2006

FL Selenia

EUR 685,000,000Senior and Subordinated

Loans

KKR/MLA & Bookrunner2006

ANNEX (1)SELECTED DEALS 2006/2007

Republic of Slovenia

EUR 1,000,000,0004.00%

Government Bond

Joint Bookrunner2007 – 2018

Hypo-Alpe-Adria-BankInternational

EUR 2,000,000,0004.375%

Senior Bonds


Abengoa BioenergyFrance

EUR 158,200,000Project Finance

FacilitiesSole MLA, Bookrunner& Administrative Agent

2007

POLIS Immobilien

EUR 89,800,000IPO

Sole Bookrunner2007

Swisscom/Fastweb

EUR 3,700,000,000Tender Offer

Advisor2007

Yapi Kredi DPR Finance Company

2007-1

EUR 400,000,000Future Flow – Turkish

DPR SecuritisationJoint Arranger &Joint Bookrunner

2007

Immoeast

EUR 2,835,000,000Capital Increase

Joint Bookrunner & Joint Global Coordinator

2006

DaimlerChrysler

EUR 2,000,000,0004.375%

Senior Bonds


ACM/ASP/Vesta

EUR 180,000,000Merger of ACM and

ASP into VestaAdvisor to the

companies2007

Oyak

EUR 2,400,000,000Acquisition Advisory

Advisor2006

Turkish Airlines

EUR 170,000,000SPO

Joint Bookrunner2006

Autostrade/Stalexport

EUR 54,600,000Capital Increase

Advisor to Autostrade2007

STALEXPORT

Alliance Boots

EUR 17.8 bnLead Financial

Advisor

MLA and Bookrunner2007

Endesa

EUR 43.7 bnMLA and Bookrunner

2007

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"Best Investment Bank CEE"

Global Finance2007

"Best Equity Bank CEE"

Global Finance2007

"Best M&A Bank CEE"

Global Finance2007

"Best FX Bank in CEE"

Global Finance2007

# 1 Express Certificates

Focus Money2007

Best Conservative Strategy Certificate

Focus Money2007

ACPM Awarded Credit Portfolio

Manager of the Year

Risk Magazine2007

"Senior Debt Deal of the Year"

Euromoney/Ernst & Young

2006

"Global Renewable Energy Award"

Euromoney/Ernst & Young

2006

# 1 MLA Austrian Transactions

Dealogic2006

European Mining Deal of the Year

Project Finance2006

# 1 Structured Products Overall

Deutsches RiskMagazine

2006

# 1 Cross Asset Structures

Deutsches RiskMagazine

2006

# 1 Certificateof the Year

Certificate Awards2006

ANNEX (2)SELECTED AWARDS AND RANKINGS 2006/2007

"Best Project Finance House"

Finance New Europe2006

# 1 MLA Italian LBOs

Dealogic2006

# 1 Bookrunner and MLA German LBOs

Dealogic2006

# 1 All Jumbo Covered Bonds 2006

Global Finance2006

Best Custody House in Bulgaria

Global Custodian2007

Best Custody House in Poland

Global Custodian2007

Continental Financial Advisor of the Year

Acquisitions Monthly2007

MARKETS

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