UniCredit Group

Munich, 24 September 2007

Ranieri de MarchisChief Financial Officer

2

Re-assessment of funding mix and tenor based on market appetite

Well balanced balance sheet structure

UNICREDIT POSITIONING IN THE CURRENT FINANCIAL TURMOIL

Clear funding and liquidity management based on three solid pillarsLIQUIDITY

EXPOSURE TO SUB-PRIME &

CONDUITS Negligible exposure to the areas affected by the recent market turmoil

3(1) Medium-long term funding, 139 mln (above 1 year - capital instruments and funds not included) / Medium to long term commercial Banking book assets (254 mln)

(2) Ex Bank of Italy structural liquidity Rule 2 aimed to ensure a structural equilibrium between assets and liabilities by a specific weighting system

WELL BALANCED GROUP ASSET & LIABILITY STRUCTURE

30 June 2007

BANKING BOOK

303

218

708 bn

254

339

25139

48618 bn

32

130

26224

Total Liabilities 869 bn

Total Assets 869 bn

OtherOther

Trading assets

Fixed assets

M/L term assets

S/T assets

Trading liabilities

M/L term liabilities

Due to customers

S/T liabilities

Regulatory Capital

Customer Loans (454 bn)

Customer Deposits (303 bn) = 150%

Financial Equilibrium ratio(1): from 15.3% in 2003 to 56.4% as of June 07

Former Bank of Italy Rule 2(2) +31.9 bn

Strong discipline provided by internal rule:

Liquidity ratio limit above 0.90

4

AGENDA

UniCredit Funding Model

US Sub-prime and Conduit exposure

5

UNICREDIT: A PAN-EUROPEAN FUNDING NETWORK

Four regional liquidity centres

Comprehensive liquidity metrics

Daily Group exposure monitoring

Regular stress testing performed

ALM function with Group-wide access to data

Robust work flow around intra-group liquidity flow management

Intra-Group liquidity management trading platform

UniCreditPlus

Branches & UCI Dublin

HVBPlus

BranchesBA-CA

Pekao

Co-ordinated, decentralised funding model with clear liquidity governance

UNICREDIT FUNDING MODEL

6

Maintaining eligible and marketable collateral

>56 bn of collateral available within 1 month

Increasing access to secured funding with new asset classes

200 mln of new collateral through the Italian “ABACO” initiative, rising to 2.2 bn by YE

Projects in place to monetise existing assets through ECB and other Central Bank facilities

THREE PILLARS OF FUNDING & LIQUIDITY MANAGEMENT

Diversification of geography and instruments for both S/T and M/L termDepos, CD’s, CP, Private Placements, Pfandbriefe, Retail

Leveraging on the historical funding reach of HVB & BA-CA

Centralised co-ordination of pricingMinimise cost of funds

Avoid internal competition

Extensive sharing of liquidity between all regional liquidity centres … cash pooling

Trading with Market Place, UCI’s digitalized trading and accounting platform

Active since March 07, live in all Italian entities, HVB, BA-CA, Pekao, Capitalia

Third party funding needs reduced by a further 3.2 bn in 2007

MANAGING INTRA-GROUP

LIQUIDITY

FUNDING

RAISING LIQUIDITY WITH

ASSETS

7

UCI Holding

acting as the second level netting center (obligation of “first call” for each Legal Entity) and monitoring and steering the Group’s position

coordinating and accessing the medium/long term debt capital markets

accessing the unsecured Money Market and issuing CD/CPs to fund the open position of the Group

Cash pooling to optimize cost of funding and unnecessary access to the market

CO-ORDINATED AND DECENTRALIZED MARKET ACCESS:UCI CASH POOLING SYSTEM

Regional Liquidity Centers acting as first level netting for each Legal Entity under their perimeter

* Access to Global Markets needed for specific instruments, e.g. Pfandbriefe

MIB

acting on the trading market for all the Group

accessing the market for Repos, derivatives and unsecured Money Market for its own needs

Global Markets

UCI - Holding

Regional Liquidity Center

MIB

Regional Liquidity Center

HVB/BA-CA

Regional Liquidity Center

Italian Legal Entities

Local Markets

Close net position, as todayObligation of “first call” for net excess/deficit

8

IN RECENT YEARS UNICREDIT HAS SUCCESSFULLY DIVERSIFIED SOURCES OF S/T FUNDING & LIQUIDITY…

Stable and diversified Funding with three key accesses to the market:London, Vienna and New York

Avg maturity 92days(1)

Avg maturity

108days(1)

Avg maturity

104days(1)

GEOGRAPHICAL DIVERSIFICATION INSTRUMENTS DIVERSIFICATION

+16%

+2.5%

(1) Calculated using gross inter-bank data

2005 2006 2007

EEC Total

Tokyo

Paris

Warsaw

Vienna

Munich

Hong Kong

Luxemburg

Dublin

New York

London

Milan

Net Reposwith banks

Extendible

CP's

CD's

Net interbank

2005 2006 2007

9

… AS WELL AS OF MEDIUM/LONG TERM FUNDING

(*) UCI + HVB combined “pro forma”

COLLATERALIZED

DELINKED FROM SENIOR RATING

MLT Funding Plan

Public

Bank Capital

Private Placements

Retail

Pfandbriefe

ABS/RMBS

Trend

PUBLIC MARKET

RETAIL/PRIVATE PLACEMENTS

Diversified medium/long term funding in large liquid markets

Pursuing niche funding opportunities

Funding increasingly de-linked from senior credit rating using asset backed products and covered bonds. Parallel to Pfandbriefe, entering the new Italian covered bond market in 2008

Well established presence in the key liquid markets across different products

7% 15%22% 30%16%

19%

24%21%

16%11%

6%12%32%

32% 21%

25%4%6% 12%

6%25% 18% 15%7%

2004* 2005* 2006 2007

10

THE MARKET CRISIS DID NOT AFFECT UCI STRONG LIQUIDITY POSITION IN AUGUST AND SEPTEMBER

UniCredit Group 1 month available liquidity(1)

(1) Calculated as: (sum of net liquidity inflows in the timeframe) + (securities eligible for discount to the ECB, marketable repoable securities)

2 Apr 16 Apr 30 Apr 14 May 28 May 11 Jun 25 Jun 9 Jul 23 Jul 6 Aug 20 Aug 3 Sep 17 Sep

Strong increase of intra-group liquidity flows in August (+61.2% m/m), reducing need to access the market

Money Market prices in the Internal liquidity market always below Euribor

60

100

140

Indexfigure

Sound and comfortable positive liquidity gap, even after August 07 crisis

11

AS A RESULT OF MARKET TURMOIL BANKING FUNDING COST HAS GONE UP

1)1) Funding mix does not consider the Core Tier I because its cost is not directly affected by the liquidity crisis

2)2) Spreads are derived from secondary market. Because of current market high volatility they could change substiantially from day to day

Funding mix (1) Spreadsante crisis

Spreadspost crisis

Average Spread 14bp Average Spread 54bp

+40bp (2)

Senior 5Y 95.61%

Preference shares 1.05%

Tier II 3.34%

Senior 12bp

Preference shares 80bp

Tier II 33bp

Senior 50bp

Preference shares 210bp

Tier II 118bp

FOR ILLUSTRATIVE PURPOSES ONLY

12

UNICREDIT ANSWER TO CURRENT MARKET CONDITIONS:KEY INITIATIVES

Focus of Funding Strategy:

Concentrate on collateralized funding sources like Pfandbriefe (Eur Jumbo) and Italian covered bond

Strengthen/continue diversification of funding sources

Manage higher funding cost going forward

Manage actively our assets base and re-price

Push to ensure “easy” liquidity transfer across the Group

Increased value of retail deposit base

13

AGENDA

UniCredit Funding Model

US Sub-prime and Conduit exposure

14

Euro mlnTotal

Unicredit Group

On balance

US sub-prime RMBS 127

CDO with partial sub-prime 139

of which equity tranches/income notes 11

Retained interest 11

Total on balance 277

Off balance 77

Total 354

Exposure to US sub-primes:

RMBS collateralized by US sub-prime mortgages (mainly vintage, 2002-2003), still AAA rated

CDO with sub-prime collateral: 90% still investment grade, 70% AA or better at the end of August

Retained interest held by Pioneer

NEGLIGIBLE EXPOSURE FOR UNICREDIT TO US SUB-PRIME…

RMBS: Residential Mortgage Backed SecuritiesCDO: Collateralized Debt Obligations(1) Off balance items include conduits with sub-prime exposure and investments in SIVs(2) On Unicredit reported total regulatory capital as of June 07

(1)

Exposure equivalent to 0.8% total regulatory capital(2)

15

8.5

6.2

14.3

July 07 Aug 07 5 Sep 07 Feb 08E

… AND TO CONDUIT BUSINESS

Very quick response to market turmoil by reducing Bavaria TRR assets from 14 to 6 Euro bn

Bavaria TRR exposure, Euro bnEuro bn

HVB sponsored conduits

Size as of 29 Aug-07

Type of Conduit

Liquidity line

HVB Liquidity line

Letter of Credit

Arabella 1.8 Customer Yes 1.84 0.18

Salome 1.1 Customer Yes 1.12 0.69

Black Forest* 0.8 Customer Yes 0.82 0.35

Maximillian* 0.8 Arbitrage Yes 0.82 0.04

BUFCO* 1.1 Arbitrage Yes 1.13 0.10

Bavarian TRR* 6.2 TRR No - -

Total 11.8 5.73 1.36

* US $ denominated; €/$ 1.365 ratio

Bavarian TRR as of Sept 5

Extremely low exposure to 3rd parties conduits: total liquidity lines provided by HVB/BA-CA ~0.55 bn

0(1)

(1) Total Rate of Return Conduit

16

ANNEX

17

273229

343338

130140

0

20

40

60

80

100

120

140

160

5 years 7 years

2005

2006

Jun 07

Sep 07

813

17

1015

19

912

16

35

50

65

0

10

20

30

40

50

60

70

3 years 5 years 7 years

2005

2006

Jun 07

Sep 07

RECENT MARKET DEVELOPMENT TRIGGERED A SUBSTANTIAL WIDENING OF UCI CREDIT SPREADS ACROSS ALL PRODUCT CLASSES

SENIOR

LOWER TIER 2

RMBS(*)

UCI credit spreads have widened In line with peers across all product types

New issue spreads are even wider:

Deutsche B. eur 1.75 bn (Aa1/AA-) 10 year Senior + 65bp vs. 18bp

BNP eur 1 bn (Aa2/AA) 10 year Lower Tier II + 80bp vs. 30bp

BNP gbp 425 mln (Aa2/AA) 10nc5 Lower Tier II + 68bp vs. 25bp

Credit Suisse eur 1.0 bln (Aa1/AA-) 10 year Senior + 75bp vs. 18bp

Also under stabilized market conditions spreads will remain substantially above average levels within FY 2007

(*) Source UBS for 2003/2004: data are derived from issuance made by italian peers as no RMBS issuance were made by UCI

13 1515 1714 16

60

72

0

10

20

30

40

50

60

70

80

7 years 9 years

2005

2006

Jun 07

Sep 07