UNICREDIT UNLOCKED UNICREDIT STRATEGY DAY - MILAN, 9 DECEMBER 2021 - UNICREDIT GROUP
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UniCredit Unlocked UniCredit Strategy Day Milan, 9 December 2021
UniCredit Unlocked Empowering Communities to Progress
UniCredit Today
13 leading banks with unrivalled distribution power and truly diverse talent
Connecting 15m clients across Europe ...
Untapped
potential,
14m 1m Cross-border payments market share:
waiting to be
Retail clients Corporate clients c. 2x intra-country
unlocked
... through a unique and diverse talent base
Group Executive
Group overall Leadership team1 Committee
International mindset2
Outside of head office country 57% 42% 53%
Gender balance2
Female 54% 33% 40%
... 13 Banks3 embedded in the fabric of Europe
# 1 Eastern
Europe # 2 Central
Europe # 2 Italy # 3 Germany Clients >500k
3UniCredit Today
Stakeholder perceptions are still far away from our potential
Clients Employees Investors
I applied for a loan We are losing new Is UCG still in
and it took a lot to complete potential business opportunities restructuring mode?
the process – too slow, because there are too many internal
too complex hurdles, bureaucracy The problem is not so
much how much capital to keep
but how to make it work
People working in the We have a proliferation
branch are so busy … of committees … slowing down UniCredit needs
the time-to-market to show simplification in its
geographic exposure
Is it possible that I'm supposed Multiple layers of checks
to go to the branch to sign papers? make it difficult to work and Extremely high stated
What about the digital era? to support our clients net income volatility
BUREAUCRACY UNDERVALUED
INEFFICIENT Weak profitability Excess capital
Not digital
UNCLEAR PURPOSE
Complex Slow
Fear
Restructuring
Unfocused
UNCLEAR
waiting
Mistakes forbidden
Rules
AVERSION COMPLEX
VOLATILITY
changing Difficult Risks RESISTANT Low returns LIMITED REVENUE
4UniCredit Today
Stakeholder perceptions are still far away from our potential
Purpose Client proposition Employees Value proposition Valuation
What does UniCredit A simpler, better Daily work No clear strategy for Current delivery and
stand for? integrated, faster to environment and sustainable growth hence valuation
respond service is organisational set-up No clear path to strong does not reflect
required prevents people from recurrent RoTE Unicredit’s potential
delivering their best
Uncertain and insufficient
capital distribution
Need to move out of a period of retrenchment and restructuring
5 into an era of purpose, growth and value creationUniCredit Unlocked
Our strategic imperatives and financial goals
Grow in our regions and develop our client franchise RoTE of c.10% by 2024 and
● Quality growth both from existing and new clients
● Develop best-in-class products and services: either in-house or with external partners
sustainable distribution of at
least 16bn between 2021-24
Change our business model and how our people operate via three interconnecting levers
● Grow capital-light business, focusing on value-added products and services for clients
● Targeted cost efficiency to fund investment and deliver operating leverage
Cost reduction,
Deliver economies of scale from our footprint of banks 0.5bn net of 0.6bn investment
● Unite our 13 banks in one integrated group and 0.5bn inflation
● Central steering where it adds value; local empowerment within a clear risk framework
Organic capital
Transform our technology leveraging Digital & Data c.150 generation,
bps per annum
● Redesign operating model: reclaiming core competencies in-house
● New way of working: centred around clients and common platforms
Incremental net
Embed sustainability in all that we do 1.1bn revenue, mostly
driven by fees
● Leading by example, striving for the same high standards that we seek from those we do business with
● Equipping ourselves with tools to support our clients and communities to navigate the transition
6 Securing the foundations to deliver longer-term RoTE and distribution ambitions well beyond 2024UniCredit Unlocked
What defines us and how we do business
Win.
For our clients: delivery of best-in-class products and services
For our investors: creating long term shareholder value
For us: uniting behind a single ambition and shared principles
The Right Way.
Integrity
Ownership
Care
Together. As one team and with a common purpose
As true partners to all our stakeholders
7UniCredit Unlocked
Optimise Build for
Today TomorrowOptimise Today
Connecting to our clients in a unified way across Europe
15m
clients Reunified client segments
13 banks
Harmonised service model
Simplified processes 4
87k Common organisational structure
regions
2
people1
Best-in-class factories delivering
for our clients product
factories2
9Optimise Today: Clients
A unified approach: putting clients back at the centre
Unified
From Fragmented1 To and Simplified1
Retail Corporate
Illustrative Private Large Illustrative
Banking Corporate
54%
Revenue2 Balanced Medium
46%
Revenue2
Affluent
franchise Corporate
between
Corporate
and Retail
Mass Small
Market Corporate
Micro
Business
ITA
BUL
BUL
ROM
ITA
ROM
CRO
SRB
RUS
CZE
CRO
SRB
RUS
CZE
SVK
SVK
AUT
AUT
GER
GER
SLV
SLV
BIH
BIH
HUN
HUN
Illustrative Illustrative
10 From a heterogeneous client service model to a unified client approachOptimise Today: People
Culture of empowerment, centred around the client
Ultimate decision-making Empowered with accountability,
From To
far from the client within a clear framework
Decisions
83k
Unnecessary
bureaucracy Ownership within clear risk
/ year1
and behaviour parameters
Risk decisions in Italy that
can be returned to the Holding
business Processes
Approval n Streamlined
Approval 2
Controls
Second line providing framework,
advice and controls
Approval 1
Client
Escalation
Decisions Where necessary: to light Steering Group
11 Unlocking our talent to reclaim our natural market shareOptimise Today: People
United behind a single ambition and purpose
A new mindset Galvanised by a
Win. common objective
The Right Way. ● Reclaiming pride in our businesses and our services
Together. ● Driving together to take back market share
The Bank
for Europe’s
Future
Inspired to deliver Truly European
for our clients perspective
● Entrepreneurial spirit, within clear guidelines ● Uniquely pan-European footprint and heritage
● Empowered by decisions occurring at the right place ● Supporting high employee mobility
12 Empowering Communities to ProgressOptimise Today: Organisation
From a complex, siloed model to a lean Group working in partnership
From To
CB CB CB
5 4
Italy Germany Austria CEE
Siloed business Coverage regions
divisions
1
Centralised
CIB 2
Product factories
Non-Core Non-Core serving all regions
1
Heavy, commanding
Corporate Centre 1
Leaner Corporate Centre
Corporate Centre embedding Digital & Data
External, fragmented IT
13 banks connected by a common model, technology, data platform and principles
13 to deliver best-in-class products and services to our clientsOptimise Today: Organisation
Client coverage harmonised and fully returned to our banks and people
8bn
Revenue
4bn
Revenue
Clients
Approached in a unified way:
harmonised service segments
and standardised delivery
model
10%
RoAC1
7%
RoAC
People
Accountable for decisions
made for clients, within a clear
risk and behaviour framework
2bn
Revenue
3bn
Revenue Organisation
Providing the tools to enable
excellence:
13%
RoAC
11%RoAC
● Digital & Data to support
bespoke service
● Best-in-class product
factories to deliver quality
14Optimise Today: Organisation
Focused on our strengths, striving for excellence for our clients
Corporate Individual
Solutions Transactions
and Payments
Advisory and
Capital Markets Solutions
Value-added Truly
products and Life capital-light
services Client Risk
Mgmt.
Insurance
model Balanced mix of best-in-class
solutions: developed
internally or by partners
Protection Comprehensive offering:
allowing us to meet all
Specialised clients’ needs
5bn 3bn
Lending
> Funds
Digital & Data as a key
enabler for a seamless
Revenue Brokerage and Revenue client experience
2021 Assets under Portfolio 2021
Custody Mgmt.
Leverage Group scale
Half of Group revenue – serving all 4 regions – developing
15 higher value-added products and servicesOptimise Today: Organisation
True access to value-added services for our Corporate clients
1m
Corporate Clients
Transactions
and Payments
Advisory and
Capital Markets
Corporate Solutions
Unique differentiators in our model ...
Life Extensive Corporate client base
Client Risk Insurance
Large with longstanding relationships
Mgmt.
Corporate
High quality service tailored and delivered
to the client segment’s need
Protection
Medium
Corporate Specialised Cross-border positioning with ability to support
Lending Coverage clients in trade, transactional and growth ambitions
regions
Funds
Small Brokerage &
Corporate Assets under
Custody
Portfolio ... coupled with product range that
Mgmt.
Product
expertise
meets clients’ needs, that adapts,
and that innovates
16Optimise Today: Organisation
Leveraging our competencies, driving capital-light growth
Corporate
Solutions > 5bn
Revenue 2021
4%
Revenue CAGR 2021-24 Strategic Actions
13% 17%
RoAC 2021 RoAC 2024
Advisory and 0.5 +11%
● Strengthen advisory – from a low base
Capital Markets ● Focusing on value-added solutions requested by our Small and Medium
Corporate clients
Transactions 2.0 ● Harmonise and enrich international payments, trade finance
+5% and working capital offerings through client e-banking
and Payments portals
Client Risk +4%
● Enhance key execution capabilities and increase penetration via digital tools
1.4 ● Grow Corporate FX
Management
● Support our clients in the transition to a sustainable future
Specialised −1% ● Help deploy Recovery and Resilience Facility funds
Lending 1.5
+3% ● Increased profitability discipline with originate-to-distribute” approach
on normalised basis ● 2021 to be normalised for positive one-offs including TLTRO contribution
17 Wholly focused on expanding the level of service requested by our existing core client relationshipsOptimise Today: Organisation
The right model for our clients and for us
Principles behind Individual Solutions
our model
Transactions Advisory &
& Payments Capital Markets
The model that delivers results …
Shared
costs
Life
High retention of value chain coming
Client Insurance together with best-in-class partners
Client Risk
choice Mgmt.
IT High returns:
integration 25% Revenue / RWA in Italian insurance
Know Protection Targeted scale and leading market share
-how
where it counts
Specialised
Lending ● 800bn TFA
Scale
● #1 unit linked (c.40% market share) 1
Funds ● #2 non-life1
Reduced Brokerage and
risk Assets under
● >10% mutual funds market share in Italy
Portfolio
Custody Mgmt.
... and is fit for our footprint
18Optimise Today: Organisation
Ambition to grow significantly, offering simpler solutions for clients
Individual
Solutions 3bn
Revenue 2021
5%
Revenue CAGR 2021-24 Strategic Actions
High
RoAC 2024
Life Insurance and Protection as core banking service
Life Insurance +1%
Insurance
0.7 ● Simplified partnership model, particularly non-life insurance
● Enhanced commercial effectiveness with hiring of Protection specialists
Protection 0.2 +19%
● Enriched product shelf for full array of solutions
Asset Management
Funds 1.6 +2%
Balance of internal and partners’ solutions for clients
● Global coordination of partnerships, expansion of internal capabilities
across the Group
Portfolio Management +10% ● Reinforcement of frontline: hiring private bankers
Brokerage and 0.3 ● Deposits conversion with liquid high margin alternatives
0.3 +14% ● Innovative solutions and rich ESG offering (>40% AuM in 2024)
Assets under Custody
19 Best-in-class products and seamless digital client experience thanks to IT platforms integrationUniCredit Unlocked
Optimise Build for
Today TomorrowBuild for Tomorrow
Investing in digital, data and our people
Digital
& Data
2.8bn
Total IT investments1
New
hires
3.6k New hires2
2022-24 2022-24
Case studies
User experience +1.5k Business
Smart banking
New platform for unique and Germany
consistent experience across devices Advice and services available in a branch, online, via
o/w
app or via voicebot
+900 Italy
New digital offering
Digital onboarding, lending, advice Smart invest
Croatia +300 CE & EE
Launch of simple advisory tool for effective and
Payment value chain sustainable sales of investment product +200 Germany
Simpler, faster, real-time
payment management AI-powered recruiting +100 Control functions
Czech Republic and Slovakia
Smart recruitment chatbot which interviews,
Cyber security analyses and sorts candidates for first round
according to suitability +2.1k Digital & Data
Several initiatives aimed at continuously
strengthening our cyber security defences High speed consumer loans
Austria
21 Pre-approved loans granted in under 5 minutes both
within the branch and remotelyBuild for Tomorrow: Digital & Data
A new way of working, investment model and client approach
Internalisation
and rationalisation Way of Investment Client
working model approach
Reclaim core
competencies
and skillset
Modular and reusable Amplified through Focused on value creation
Rationalise solutions which can be efficiencies and scale around our clients
external scaled across our Group
organisation Self-funded through cost Organisation structured
and partners Global technology, business, reductions from internalisation around products
and data platforms to
maximise reusability, scale, Spend better targeted Functions working together
cost efficiency and speed thanks to synergies from to deliver quality at speed
Group approach
Enabling the use of Data and AI to deliver products
22 to clients that truly respond to their needsBuild for Tomorrow: Digital & Data
Internalising core competencies and rationalising the digital organisation
Fragmented infrastructure Ownership of core competencies
From and externalised skillset To and upskilled, streamlined workforce
Transactions
and Payments
80%
Loans Internal and under our control,
supervision and risk framework …
Cards Insurance
Funds Advisory
-67%
External: used where
FX Treasury they offer excellence
50% external …
… each one at 1.3x
cost of an internal
and to cover the
peaks
External, high cost project managers replaced with internal product managers and developers,
23 all leveraging public cloud and benefitting from its current state of maturityBuild for Tomorrow: Digital & Data
A new way of working: platforms to deliver reusable, quality solutions at speed
Siloed applications with Group-wide, modular and
From duplicated development To therefore scalable approach
ITA GER CE EE Months Weeks
Functional organisational Agile
Build based
on modules
management approach
Fragmented Modular
functionalities solutions
Siloed Overarching
Build from scratch
Business platform (common APIs)
approach approach
Limited data usage Data platform Data platform
Outsourced Upgraded internal
External infrastructure infrastructure infrastructure Technology platform
Business and data platforms built around the needs of a global experience:
24 current cloud maturity and learnings from first movers act as enablersBuild for Tomorrow: Digital & Data
Increased impact of investment: through efficiency and scale
From Constrained IT spend To Increased IT investment
Scattered and
consumed by high cost, Higher overall
low productivity IT spend, but directed on
externals lower cost, better skilled and higher Prioritisation
productivity workforce; with
impact leveraged from focus
and benefits of scale
Platforms
Products
External
Internal Higher quality digital output
Illustrative
at lower cost of delivery
Strategic IT budget allocation leveraging under-utilised critical mass
25 to facilitate a Digital & Data strategy befitting a global institutionBuild for Tomorrow: Digital & Data
Organised around products and platforms with an agile way of working
Traditional, functional, fragmented Digital, centred around clients’ needs, organised
From and duplicative approach To around products, leveraging common platforms
Legal
Digital
Digital Legal Compliance
Marketing
Marketing
Risk
Compliance
Risk ESG
ESG HR
Business HR Business
Product approach instead of functional approach, supported by
26 use of cloud, automation, APIs and real-time client dataBuild for Tomorrow: Digital & Data
Data and AI to learn at scale and continuously adapt to change
Relevant conversations Faster and smarter decision making
Personalisation at scale based on Real-time data accessibility and self-service
persistent IDs across all stages of consumption leading to better decision
the client lifecycle and shorter time-to-value
Simple banking AI-powered growth
Straight-through processing Smarter, more responsible and scalable AI to
journey design to provide enable data-driven advisory with guided
smooth financial experience selection of business opportunities
Smarter products Ecosystem thinking
Data-driven product design Provide value added services
approach for a superior client exploiting third party trusted data
experience to boost sales
27 Deliver relevant personalised experiences and advice with faster time-to-marketBuild for Tomorrow: Sustainability
Leading by example with sustainability embedded in our culture
Environment Social Governance
Our greenhouse gas emissions Corporate citizenship and Global policies
philanthropic initiatives
60% > 40m
●
●
ESG policies, statements and commitments
Human capital policies and joint declarations
reduction vs. 2008 Net Zero ● Compliance key policies
1
by 2030 contribution to communities2
Renewable energy
Strong diversity and inclusion framework
79% 100% ITA
100% GER
Education and impact
46% 40% 33%
usage in our premises 97% AUT 100k 1.9m female female female
young people direct and indirect BoD GEC Leadership team
Paperless and plastic-free educated beneficiaries of
social financing
No single-use plastic items in Actions on
UniCredit buildings by end 2022 gender pay gap
28 Striving to hold ourselves to the same high standards we seek from those we do business withBuild for Tomorrow: Sustainability
We will help our clients and communities to progress
Social
ESG advisory model for Corporates
and Individuals Financial support for categories at
risk of exclusion (Recovery and
Financing innovation for environmental Resilience Facility funds, training,
transition capacity building initiatives
Partnership with key players to enrich and partnership)
and improve ESG banking and non-banking Strategic projects with key partners for
offering (e.g. ESG rating providers) specific social challenges (e.g. job inclusion,
social enterprises, female empowerment)
Signatory of Net Zero banking alliance
Focus on financial literacy:
basic financial skills, entrepreneurial skills,
basic education for vulnerable categories
Environment
29 Equipping ourselves with tools to support our clients and communities to navigate the transitionUniCredit Unlocked
Our financial goals
Optimise Build for
Today TomorrowOur financial goals
Initiatives already delivering results
Clients grouped the same way;
service models adjusting
People with clearer objectives,
UniCredit Unlocked driving the business
New client-focused organisational
structure; refined management team
Digital transformation in flight
First evidence of the impact of these initiatives 2021 RoTE >7% and
31 constant CET1 despite headwindsMacroeconomic advantages from our positioning
Striving to deliver alpha
Our Interest Rate scenario Our footprint has 20bps higher CE & EE benefit from strong Overweight countries with access
is conservative GDP growth than the Eurozone expected loan growth to Recovery and Resilience Facility
Euribor 3m EoP GDP growth (2022-24)1 Loan growth vs. GDP (2022-24) Allocation of RRF
3 2.9 6
Split by
country
2.7
4 724bn
-55 -47 2
Split Green
0 by use transition 47%
Italy
EE
Austria
Germany
CE²
2020 2021 2022 2023 2024 Eurozone UniCredit
Social
Average Countries
development 27%
Digital
Market forward as of 7 December
UC Scenario
GDP Loan Growth transformation 25%
32 Macro assumptions exclude unexpected materially adverse developments such as the COVID-19 pandemicOur financial goals
UniCredit Unlocked
Optimise Operational efficiency: 1.5bn gross cost savings
o/w Digital & Data: 0.4bn rationalisation
Capital efficiency: c.130bps gross saving1
Shareholder distribution6
Distribute
≥16bn
Consistent with our
organic capital generation
The Bank Invest
for Europe’s Digital & Data transformation: 2.8bn2
CET1 ratio: 12.5-13%
Strengthen Future New hires in Business, Digital & Data: 3.6k
Organic capital generation Targeted growth initiatives including ESG
o/w Net profit: >130bps p.a.
o/w RWA evolution: 20bps p.a. Grow
NPE ratio (2024) Return Net revenue 2% Net profit 10%
Gross4: c.3.5%
o/w Fees 4% EpS3 >15% (2021-24 CAGR)
Net5: c.1.8% RoTE: c.10% (2024)
333 levers
Drive higher sustainable returns through interconnected levers
Total costs
Cost Deliver a lower absolute cost base while funding digital
transformation and investing in the business
Levers largely under
management control
The Bank Allocated capital
for Europe’s Capital Optimal capital allocation and active portfolio
management driven by RoTE maximisation
Future
Revenue minus LLP
Net Revenue mix and stable
Revenue Driven by revenue that delivers profitability above the Cost of Cost of Risk largely under
Equity and recovery of natural market share with risk discipline management control
343 levers: Cost
Our principles for operational excellence
Targeted reductions
Self-funding investments Selective efficiency, mainly
Freed-up resources ✓Enhanced of non-business items, without
invested in frontline, client experience impact on revenue generation
Digital & Data ✓Improved work and control environment
environment
✓Revenue Faster realisation of non-business related efficiencies
Cost evolution over plan horizon
2.0bn
Consistent delivery
Non-business¹ Business² 1.7bn
Frontloading and linear
realisation of efficiencies
353 levers: Cost
Driving operating leverage whilst funding higher investments
c. 56% Targeted approach Growing c. 50% 4p.p.
C/I ratio to cost savings and digitising C/I ratio Positive
operating
leverage1
0.5bn
inflation
1.5bn gross
0.6bn additional
savings investments
9.9 2.8bn
cumulative
9.4
1.2bn gross integration cost2
8.8 cash digital
investments
Costs
Costs 2021 Inflation Pro-forma Team23
acceleration
Technology
benefit
Simplification
& streamlining
Pro-forma Investments
in
Investments
in
Action on
gender pay gap Costs
Costs 2024
2021 Business Digital & Data
2024
363 levers: Capital and Net Revenue
Our principles for capital deployment maximise risk-adjusted returns
Empower
Frontline owning the business Mindset Shift
and driving growth within
clear parameters ✓Focus on Change from maximising
high profitability,
capital-light areas top-line growth to obsession
with risk-adjusted returns
✓Less capital-intensive; and net capital generation
more resilient business
✓Higher returns and
capital generation
Optimise
Improve lower return areas: Granular approach
● Increase share of wallet
● Increase pricing Analysing portfolio at deeper
… Or disinvest level of detail to identify
pockets of inefficiency
373 levers: Capital
Capital-light fee business and optimisation of capital allocation drive returns
Net revenue driven by fees Granular analysis of lending portfolio to
and higher RoTE lending Delta reallocate capital to higher return areas
2021-24
2%
+ 1.1bn
+
CAGR
Fees1
41% 43% 0.8bn
+
NII minus LLPs 0.4bn
+
Return
> CoE
Trading & Other 0.1bn
− < CoE
2019 2021 2024 Distribution of returns by sub-segment, illustrative
38 Using return-on-capital lens to decide where to drive revenue3 levers: Capital
Active portfolio management and capital allocation boost returns on RWA
Net revenue / RWA
Refocus Headwinds Growth
4.9% c.5bps c.35bps c.-5bps c.10bps 5.3%
Basel 4 Fully Loaded impact
– post 2024 - estimated
Active portfolio management at c.70bps pre mitigation actions 13 levers: Net Revenue
Incremental capital-light net revenue growth through tangible actions
Delta net revenue
2021-24, bn
2 % CAGR 4 % CAGR
Including 0.2bn
incremental from ESG
Net interest income minus LLPs Fees
0.8
1.1
0.4
Higher Market share NII headwinds Delta NII Corporate Individual Delta fees Trading & Other Total delta
margin¹ recovery² & LLP³ minus LLPs Solutions Solutions net revenue
● Recover natural market share in higher risk-adjusted margin products ● Filling gaps in the product shelf in Individual Solutions
and payments
● Focus on shorter term lending to boost portfolio rotation
● Build out advisory platform, including ESG offering,
● Conservative assumption of full TLTRO repayment by 2024 to drive Corporate fee growth
● Stable Cost of Risk given origination in regions with lower risk ● Deposit conversion to better return products for clients
403 levers: Net Revenue
Supporting our clients’ green and social transition
Environmental Lending New
production
Incremental revenue of 0.2bn with bulk of the
facilities to support clients in green transition New Production 25bn
Stock
ESG Investment Products1
>40% of 2024 AuM invested in ESG products AuM conversion towards ESG investments 65bn
150bn Sustainable Bonds
Significant contribution to the origination
of sustainable bonds coming from
Recovery and Resilience Facility funds
DCM Origination 50bn
New
Social Lending Production
Expanding the scope of Social Lending to activities
New
with high impact on society and disadvantaged areas Production 10bn 2021 2022-24
41 Innovative product offering and enhanced advisory service to support our clients as their needs change3 levers: Net Revenue
Network empowered to drive within well-defined risk parameters
Origination in regions with … leading to a stable Cost of Risk
lower risk … and decreasing gross NPE ratio
Delta client loans by region CoR1 105
Net NPE stable and below 20% of
above tangible equity
average 71
5.0%
4.5%
c.3.5%
1.8% 1.9% c.1.8%
CoR
2019 2020 2021 2022 2023 2024
below
average CoR, bps Gross NPE ratio Net NPE ratio
Continuous monitoring of risk-adjusted profitability,
42 operating with discipline and accountability3 levers
Combination of levers deliver c.10% RoTE with manageable execution risk
RoTE walk RoTE evolution
All figures in % All figures in %
Net profit
2021 guidance >3.7bn underlying net profit equal to 2022 net profit guidance,
>3.3bn with new net profit definition >3.3bn, in line with 2021 c.10
9.0 >7.0
>0
c.1 6.7
c.1
Stated >3
c.1
1.7
c.10
>7
-5.4
RoTE 2021 Cost Capital Net Revenue Other RoTE 2024 2019 2020 2021 2022 2023 2024
Contribution to Stated RoTE1 RoTE
RoTE increase 40% 30% 30%
43 Majority of RoTE accretion is through levers largely under management controlBalance sheet and liquidity
Ample buffers over capital and liquidity regulatory requirement
Capital ratios Liquidity ratios
(2024) (2024)
CET1 ratio 12.5-13% Leverage ratio
transitional > 5% LCR 125-150%
TLAC ratio > 22.5% MREL ratio > 27% NSFR
115-120%
45% of 2024 allocated capital to countries with sovereign rating higher than A1,
up from 41% 2021
44Distribution
Our new model’s distribution does not erode CET1
New business model does From Capital-intensive Capital-light
To
not rely on capital-intensive
revenue to grow, hence
allowing for a significant
increase in the distributable
amount while maintaining
a robust CET1 ratio:
c.3x former model
Year 1 Year 2 Year 3 Year 4 Year 0 Year 1 Year 2 Year 3
Illustrative
RWA CET1r Net profit Distributable amount Retained to finance growth
45Distribution
Sustainable capital generation unlocks meaningful distribution
Organic capital generation each year ... ... funds a consistent and significant distribution for investors
2021 2022 2023-24
2021
distribution Expected
In line with, or
greater than
Progressive 16bn
≥
3.7bn 2021
increase
2021-24
2021
distribution
Mix of: c.30% of
underlying ≥35% of
net profit net profit1
Cash dividend
2021 2022-24 Deployable 2024 Share buyback
excess to Organic capital amount excess to
capital target generation capital target Subject to supervisory and shareholders approvals and M&A
Our organic CET1 generation and high starting point gives us confidence
46 in our goal to return at least 16bn between 2021-24Distribution
Robust capital position with deployment options
Stronger …
12.5-13%
CET1 ratio ✓ Target revised
upwards
>5%
Leverage ratio transitional ✓ New
target ... whilst retaining
>130bps
p.a. from net profit ✓ Higher than
previous plan
deployment flexibility
Disciplined approach to inorganic options
✓
● Strategic consistency
20bps Previous plan had ● Strengthen the business
p.a. from RWA evolution only headwinds ● Accretive to returns and distribution within reasonable time
47UniCredit Unlocked
Our regions
Optimise Build for
Today TomorrowOur regions
We will leverage our solid foundations across our footprint
Scale Each region
inherent advantage in technology and in our business model delivering a
return above
Diversification their respective
unique strategic Cost of Equity
flexibility
Higher Low
return risk
A superior
risk reward
Cross-border Client access growth profile
operations of as the basis of with stable
significant value an attractive returns
to all Corporates ecosystem
Synergies
Higher Higher across each bank
growth growth as we serve our
Multicultural clients across
mindset promoting regions
inclusion and excellence
49 A group of 13 banks delivering more than the sum of the single componentsOur regions
Limited correlation between market share and profitability
From c.60% of allocated capital in segments with RoAC higher than 10% in 2021, to 100% in 2024
Corporate Retail
CE
16% 16%
Italy
14% 14%
12% 12% CE Italy
10% 10%
8% 8%
Loan Market Share
Loan Market Share
Germany
6% 6%
EE
4% 4%
EE
2% 2% Germany
0% 0%
RoAC
4% 5% 6% 7% 8% 9% 10%11%12%13%14%15%16%17%18%19%20%21%22%23%24%25% 4% RoAC
5% 6% 7% 8% 9% 10%11%12%13%14%15%16%17%18%19%20%21%22%23%24%25%
50 2021 2024 Bubble size: Net profit Group Cost of EquityItaly
Strong positioning and distribution power
A well-established ... yet to be Positive momentum
scale business ... fully realised in macro
Market share of loans1
>10%
>5%
Market
share1 > 10% >10%
loans mutual
TFA
/ GDP6
3.0%
Italy
2.4%
EU-19
funds3
Personal
45% 63%
debt
/ GDP6 Italy EU-19
Personal Bank
loans4 assurance5 Insurance
premium 2.6%
1.1%
3Q21 +11% +11% / GDP7
7m
Italy EU
vs. 4Q20 +4p.p. +2p.p. ● GDP recovery, decreasing unemployment
clients
● Almost one third of Recovery and
> 10% Resiliency Facility funds allocated to Italy
loan market share Net AuM
+ 23% ● Underpenetrated non-life insurance market
in regions
accounting for … 75%
c. of GDP2
sales
3Q21 vs. 4Q20
● Environment of high personal savings and
low debt
51 1.1%Italy
Plan to reinforce client franchise and run at full potential
60 20 20
Contribution
Net
to RoAC Capital Cost
Revenue
improvement % % %
2021-24
CAGR + 1%
gross1
− 5%
net
+ 3%
gross2
+ 1%
net
− 1%
Capital efficiency through active Gross growth, driven by capital Reinvest half of headquarter
portfolio management which more light sources, includes the streamlining benefit into digital
than offsets 2% annual growth effect from NII headwinds and and advisory network
in loan volumes disposals capabilities; Cost/Income
improvement of 2p.p. to c.46%
2024
>12 %
RoAC
+3p.p. from 20213
16bn allocated capital
> 2 bn
net profit
c.40% Group
4% 2021-24 CAGR3
52Italy
Focus on sustainable business growth
Initiatives Facts
● Enhanced offering of investment and insurance for
Retail and SMEs > 25bn
Investment
+ 10%
Consumer loans
● Rebuild natural share in high risk-adjusted return products 2021-24 CAGR
Clients businesses keeping a stable Cost of Risk placement1
● Reshape and strengthen network to improve frontline
effectiveness − 30%
Headquarter
+ 1.7k
Branch gross new
● Faster decision making and people empowerment functions hires for advisory
People and protection
● Network process redesign to digitally native
client experience > 200
Administrative
+ 2x
Digital sales /
− 70%
Time to ‘Yes’
● Fully leverage digital trends network activities total sales for Consumer
Organisation cancelled Finance products
53Germany
Strong bank supporting the German economy and society
Powerhouse in Bavaria, strong
base for Mittlestand position Client-centric Largest economy in EU
business model with focus on exports
across the country
60k Yearly GDP growth2
Private Banking clients
… with Best portfolio management 5.0%
and advice for 9 consecutive years 2.2% 1.7%
2022 2023 2024
50k 43%
2m Small and Medium Corporate clients,
Germany’s backbone, with Best NPS in 2021 of GDP export related3
14bn
clients
>
> 6k
Subsidiaries of German Corporates serviced
#1 1.5m Mittelstand4 banking wallet
in UniCredit’s international network League table for Green and ESG linked loans 1 millionaires5
54Germany
To be a leader with respect to profitability
25 30 45
Contribution
Net
to RoAC Capital Cost
Revenue
improvement % % %
2021-24
CAGR + 2% + 2% − 4%
In spite of actions to Focus on fees and superior Optimisation of business
mitigate c.5p.p. from ESG advisory resulting in model resulting in a
business growth and higher weight of fees to Cost/Income of c.50%
regulatory headwinds c.30% of revenue
2024
10
> %
RoAC
+4p.p. from 2021
11bn allocated capital
> 1 bn
net profit
c.25% Group
+16% 2021-24 CAGR
55Germany
Business growth and optimisation of operative model
Initiatives Facts
● Superior ESG advisory capabilities to support clients’
green transition > 20%
ESG revenue
+ 12bn
AuM Private Banking
+ 6%
Loans to Small and
● Leverage strong position as the Go-to bank for 2021-24 CAGR1 2021-24 growth Medium Corporate
Clients Corporates with more industry expertise 2021-24 CAGR
250 75%
● Targeted investments in growth areas, such as
Private Banking > −
● Faster decision making and people empowerment Business new hires Time-to-cash for
People by 2024 Consumer Finance
● Streamline process, product catalogue and variations
enabling headquarter efficiencies − 9%
Non-business costs
− 40%
Simplification of
2x
Digital sales /
● Digitalisation and automation allow lower cost-to-serve 2021-24 CAGR Retail product total sales
Organisation variations
56Central Europe
Strong and profitable franchise: scope to further improve positioning
Austria, Czech Republic, Hungary, Slovakia, Slovenia
Solid positioning with Balanced mix, strong market Potential from funds and
leadership in Austria shares and recognised expertise improving macro trends
Loan market Yearly GDP growth2
share in region1
8% 14%
Retail Corporate
4.9%
2.6% 2.1%
2022 2023 2024
2 ● GDP growth in plan horizon above
Market share of loans1
#
by total assets
>10% >5%
Best eurozone average
● About 62bn of Recovery and Resiliency
… for SME in Austria Facility funds allocated to UC countries in
2m
… Investment Bank in Austria
11%
Central Europe (c.12% of their GDP3)
… Private Bank in Czech Republic ● Strong economic connections within the
loan market share1 clients … Social Impact Bank in Hungary region, with Italy and with Germany
57Central Europe
Focusing on structural review of operating model and targeted growth …
Austria, Czech Republic, Hungary, Slovakia, Slovenia
10 65 25
Contribution
Net
to RoAC Capital Cost
Revenue
improvement % % %
2021-24
CAGR + 5% + 6% − 2%
Allocated capital growth in line Solid revenue growth Improved efficiency of
with commercial volumes supported by favourable macro Austria leading the region to
in the region, commercial a Cost/Income below 50%
initiatives and fee based
growth
2024
>13 %
RoAC
+3p.p. from 2021
8bn allocated capital
> 1 bn
net profit
c.25% Group
+13% 2021-24 CAGR
58Central Europe
… to better support clients in their transition and rebalance towards Retail
Austria, Czech Republic, Hungary, Slovakia, Slovenia
Initiatives Facts
● Improved client service model supported by
digital offering and seamless client experience + 2p.p.
Retail revenue
+ 1%
Above the market
● Enriched product offering including advisory on / total revenue Corporate growth
Clients green transition 2021-24 2021-24
12% 50%
● Further client acquisition thanks to digitalisation
and synergies between Retail and Corporate + >
● Simplified and automated credit processes to Net client growth Digital sales / total sales
People support faster decision making 2021-24 2024
● Transform Bank Austria into a more efficient
institution via redesign of operating model − 10p.p.
Cost / Income
c. 2 out of3
Clients digitally active
● Investment in Digital & Data to enable lower 2021-24 2024
Organisation cost-to-serve and enhance client experience
59Eastern Europe
Leading bank in fast growing region
Bosnia Herzegovina, Bulgaria, Croatia, Romania, Russia, Serbia
Leadership position Balanced business mix and
in the region excellent market recognition Fast growing economies
1 1
Market share Yearly GDP and market loan
of loans1
>15%
# # growth4
by total in Bosnia, Bulgaria
>10% assets2 and Croatia
6.0% 6.0% 5.8%
>5%
Top 3
4.0% 3.7% 3.3%
2022 2023 2024
for Corporate in
Serbia and Romania3 GDP Market Loans
Best Bank ● GDP growth in plan horizon at 3.7%
in Bulgaria and Bosnia ● About 50bn of Recovery and Resiliency
Best Private Bank Facility funds allocated to UC countries in
4m in Bulgaria and Croatia Eastern Europe (c.16% of their GDP5)
Trade Finance market leader in ● Average yearly loans growth around 6%
clients Bosnia, Bulgaria, Russia and Serbia over plan horizon
60Eastern Europe
Consolidate leadership to further boost net revenue and enhance returns
Bosnia Herzegovina, Bulgaria, Croatia, Romania, Russia, Serbia
30 65 5
Contribution
Net
to RoAC Capital Cost
Revenue
improvement % % %
2021-24
CAGR + 4% + 6% + 3%
Active portfolio management Focus on higher risk-adjusted Initiative on cost offset the
actions allow to offset part of the revenue products resulting in projected impact of inflation
organic growth in the region revenue growth leading to a Cost/Income of 40%
2024
> 16 %
RoAC
+4p.p. from 2021
5bn allocated capital
c. 1 bn
net profit
c.20% Group
+9% 2021-24 CAGR
61Eastern Europe
Outpacing market growth in Retail and consolidation of Corporate
Bosnia Herzegovina, Bulgaria, Croatia, Romania, Russia, Serbia
Initiatives Facts
● Innovative service model (remote hubs) for Micro and
Small Corporates, improved multichannel client journeys for + 12% +
Fees
6%
individual clients Net client growth
2021-24 2021-24 CAGR
● Enriched offering including investment and protection solutions, green
Clients
advisory and financing, liquidity management
● Streamlining of operating model, allowing further synergies in a
leaner organisation − 50%
Simplification of
+ 2x
Local credit
● Optimised credit processes to empower the banks to take faster
Retail product approvals
decisions, being accountable for higher competence levels catalogue
People
●
●
Digitalisation of offering and enablement of remote sales
Investment in Digital & Data to enable lower cost-to-serve and
+ 30%
Active digital
+ 35%
Digital sales /
enhance client experience
user growth total sales growth
Organisation 2021-24 2021-24
62Our regions
Applying the appropriate levers to grow and improve returns
All businesses delivering improved
returns through different levers
Fees to Net revenue
RoAC revenue to RWA Delta weight allocated capital
3 levers contribution to RoAC improvement 2024 2024 2024 2021-24
38%
Italy 60% 20% 20% >12% c.55% c.6% 44%
27%
Germany 25% 30% 45% >10% c.30% c.5% 25%
Central 20%
10% 65% 25% >13% c.30% c.5%
Europe 17%
Eastern 13%
30% 65% 5% >16% c.20% c.6%
Europe 11%
2024
Group 30% 30% 40% c.11% c.40% 5.3%
2021
Capital Net revenue Cost
Latent strategic flexibility with the ability to
63 change pace across different geographic profilesUniCredit Unlocked
Optimise Build for
Today TomorrowUniCredit Unlocked
Our strategic imperatives and financial goals
RoTE of c.10% by 2024 and
Grow in our regions and develop our client franchise
sustainable distribution of at
least 16bn between 2021-24
Change our business model and how our people operate via three interconnecting levers
Cost reduction,
Deliver economies of scale from our footprint of banks 0.5bn net of 0.6bn investment
and 0.5bn inflation
Organic capital
c.150
Transform our technology leveraging Digital & Data bps
generation,
per annum
Incremental net
Embed sustainability in all that we do 1.1bn revenue, mostly
driven by fees
Securing the foundations to deliver longer-term RoTE
65 and distribution ambitions well beyond 2024UniCredit Unlocked
Our financial ambition
2021 (Guidance) 2024
Net revenue >16bn >17bn
Fees, % of revenue c.38% c.40%
Cost / Income c.56% c.50%
Net profit >3.3bn >4.5bn
RoTE >7.0% c.10%
Organic capital generation c.150bps per annum
CET1 13.5-14% 12.5-13%
Total ESG volumes 150bn cumulative 2022-24
66 ≥16bn shareholder distribution 2021-24UniCredit Unlocked
Why UniCredit?
Cost Shareholder
Sustainability Solidity Growth
efficiency returns
ESG Rating A 12.5-13% c.50% + 2% ≥ 16bn
CET1 ratio1 Cost / Income ratio Net revenue Shareholder distribution
FY24 2021-24 CAGR 2021-245
Net Zero
Banking Alliance c.3.5% 4p.p. >15% c. 65%
Gross NPE ratio2 Positive operating EPS Cumulative returned
leverage 2021-243 2021-24 CAGR4 capital as % of Market Cap6
67 Delivering a RoTE of c.10% by 2024UniCredit Unlocked
Our commitment to 2024 and beyond
Clients Employees Investors
NEW CLIENT PROPOSITION EMPOWERED
EFFICIENT
Regained pride
Best-in-class products and advice
Increased net profit
Clients at Win.
the centre The Right Way.
Unified
RoTE >10%
Sustainability
shared purpose
DATA-DRIVEN Together.
Digitised customer service Common objective capital-light
tailor-made solutions Clear risk and behaviour parameters
Maintaining an attractive growth, return profile
68
68 and distribution policyUniCredit Unlocked Empowering Communities to Progress
Annex UniCredit Strategy Day Milan, 9 December 2021
2021 one-offs
2021 Net profit impact Notes
HR integration costs −0.6bn Gross impact:
Digital and real estate integration costs −0.3bn
− 1.2bn
Regulatory headwinds LLP −0.2bn
Fair value adjustment for IFRS5 −0.7bn
FX reserve impact from participation disposal −1.6bn Capital neutral
+1.3bn
DTA write-up Capital
Capital neutral
neutral
71 Managerial estimates based on latest available informationAustria
Leading position and improving macro trends
Balanced mix and strong
Ranked #1 nation-wide market share in all segments Improving macro trends
Loan
market
share in
10%
Retail
Yearly GDP growth2
region1
14%
Corporate
5.1%
2.1% 1.6%
Market Share of Loans1
2022 2023 2024
> 10% ● GDP growth in plan horizon above
Best eurozone average
● High and raising private consumption
# 1
by total assets
1m
clients
… Bank for SME
… Investment Bank
● Low and declining unemployment data
● Banking sector resilient with steady
… Private Bank and Wealth Manager positive trend
72Austria
Aiming at growing further with structural review of operating model
15 50 35
Contribution
Net
to RoAC Capital Cost
Revenue
improvement % % %
2021-24
CAGR + 4% + 5% − 4%
RWA optimisation to mitigate Back to natural market share Streamline the operating
regulatory headwinds fostering in Retail, expand leading model to reduce
capital-light business and position in private, complexity
focusing on value generating grow in Corporate
client segments
2024
> 12 %
RoAC
+4p.p. from 2021
5bn allocated capital
0.7 bn
net profit
c.15% Group
+15% 2021-24 CAGR
73Austria
Regaining natural market share in core products
Initiatives Facts
● Fast implementation of a state-of-the-art technological
client-centric framework + 3p.p.
Mortgages
+ 8p.p.
Consumer loans
● Expand client reach, exploit opportunities
market share market share vs. 2021
Clients vs. 2021
● All business segments with increasing value
generation, contributing above cost of capital + 4p.p.
RoAC 2021-24
− 12%
cost reduction
● Process automation transforming the way to do
2021-24
People business and operations, reducing costs
● Redesigned streamlined operating model leveraging
organisational simplification and digitalisation − 13p.p.
Cost / Income
> 50%
Investments in
● Lean business model to reduce complexity and
2021-24 growth and
Organisation boost business effectiveness optimisation
74Notes UniCredit Strategy Day Milan, 9 December 2021
Disclaimer This Presentation may contain “forward-looking statements”, which includes all statements that do not relate solely 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 United 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. Distribution of this document in other jurisdictions may be prohibited, and recipients into whose possession this document comes shall be solely responsible for informing themselves about and observing any such restrictions. This presentation may contain summarised information or information that has not been audited, and its recipients are invited to consult the documentation and public information made available by UniCredit. For the aforementioned purposes, "presentation" means this document, and any oral presentation, any question-and-answer session and any written or oral material discussed following the distribution of this document. By participating to this presentation and accepting a copy of this presentation, you agree to be bound by the foregoing limitations regarding the information disclosed in this presentation. 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. 76
Information related to this presentation
General notes Main definitions
End notes are an integral part of this presentation. “Net revenue” means (i) revenue, minus (ii) Loan Loss Provisions
See slides from 78 at the back of this presentation
for information related to the financial metrics and “Clients” means those clients that made at least one transaction in the last three months
defined terms in this presentation
“Stated net profit” means accounting net profit
All data throughout the documents are in Euros
“Net profit” only for the Group: means Stated net profit (for 2021 Underlying net profit) adjusted for
Numbers throughout the presentation may not add AT1, CASHES coupons and impacts from DTAs from tax loss carry forward sustainability
up precisely to the totals provided in tables and text test
due to rounding
“Underlying net profit” means stated net profit adjusted for non-operating items
CET1 ratio fully loaded throughout the document,
unless otherwise stated “RoTE” means (i) net profit – as defined above, over (ii) average tangible equity excluding AT1,
CASHES and DTA from tax loss carry forward contribution
Allocated capital calculated as 13.0% of RWA plus
deductions throughout the document “Organic capital generation” means CET1r evolution deriving from (i) stated net profit excluding DTAs from tax loss
carry forward and (ii) RWA dynamic net of regulatory headwinds
“Cost lever” calculated as proportional impact of gross cost savings on RoTE/RoAC delta
“Capital lever” calculated as positive impact of active portfolio management (and disposals)
on tangible equity/allocated capital delta
“Net Revenue lever” calculated as proportional impact of delta net revenue on RoTE/RoAC delta
77Endnotes: Slides 1 to 17
These notes refer to the financial metrics and/or defined term presented on:
Slide 3 UniCredit Today 1. Refers to Group Executive Committee and first line reporting to Group Executive Committee
2. Data as of 3Q21
3. Positioning as per total assets, 2Q21. Eastern Europe excluding Russia
Slide 4 Stakeholder perceptions Source: Restated quotes from internally conducted surveys among employees and externally conducted research among clients and
investors
Slide 6 Our strategic imperatives All data referring to 2021-24 unless otherwise stated
Slide 9 Optimise Today: Connecting to our clients 1. Total headcounts as of 3Q21
2. Refers to Corporate and Individual Solutions (please refer to slides 15-19)
Slide 10 Optimise Today: Clients 1. Thresholds for Retail based on TFAs, for Corporates on total revenue. Segmentation thresholds are for illustrative purposes only
2. Expected 2021 revenue split between Corporate and Retail
Slide 11 Optimise Today: People 1. Number of approvals taken by Italian territorial hub in 2020 which will be taken directly by the business
Slide 14 Optimise Today: Organisation Expected 2021 Data unless otherwise stated
1. Based on Underlying net profit and normalized tax rate
78Endnotes: Slides 18 to 34
These notes refer to the financial metrics and/or defined term presented on:
Slide 18 Optimise Today: Organisation 1. New business market share in Italian bancassurance market. Source: IAMA monitor database, internal elaboration
Slide 21 Build for Tomorrow: Investing 1. Investments not fully comparable to previous disclosure due to pricing model change
2. Hires related to new investments only, not including turnover replacement. Rounded figures
Slide 28 Build for Tomorrow: Sustainability Data as of 3Q21
1. 2030 target on own emission
2. Measured by the former London Benchmarking Group (LBG), now Business for Societal Impact (B4SI) reporting framework
Slide 32 Macro Source: GDP and Banking Sector Total Loan Growth based on UniCredit Macroeconomic and Banking Projections, October 2021.
Aggregations are weighted average considering allocated capital. 3M Euribor based on the future from Bloomberg at 07/12/2021.
The RRF from European Commission, 2021. Category split from Bruegel dataset as of July 2021, referring to EU countries that
submitted the plan
1. Average of yearly changes
2. Excluding Austria
Slide 33 Our financial goals 1. Impact of Active Portfolio Management on CET1 capital (please refer to slide 39)
2. Investments not fully comparable to previous disclosure due to pricing model changes
3. Net Profit divided by average outstanding shares, assuming a fixed P/TBV multiple for share buyback
4. Defined as (i) Gross Non Performing Exposures comprising bad loans, unlikely to pay, and past due;
TO (ii) Gross Loans to clients excluding debt securities
5. Defined as (i) Non Performing Exposures after deduction of provisions comprising bad loans, unlikely to pay, and past due;
TO (ii) Loans to client after deduction of provisions and excluding debt securities
79
6. Subject to supervisory and shareholders approvals and M&AEndnotes: Slides 35 to 42
These notes refer to the financial metrics and/or defined term presented on:
Slide 35 Costs 1. Staff costs and expenses of controlling, supporting and governance functions
2. Staff costs and expenses directly (e.g. frontline) or indirectly (e.g. back office) linked to revenue generation and client
management
Slide 36 Cost walk 1. Calculated as Revenue CAGR 2021-24 minus Cost CAGR 2021-24
2. Please refer to slide 71 in annex for details
Slide 38 Delta net revenue 1. Percentage calculated as Fees over Net Revenue
Slide 39 RWA walk 1. Impact for 2025 equal to c.50bps pre mitigation actions
Slide 40 Delta net revenue walk 1. Delta contribution from products with margins higher than average
2. Delta contribution from products with commercial aim to recovery natural market share
3. Delta contribution from non-commercial items
Slide 41 ESG transition 1. Based on Art. 8 and 9 SFDR regulation
Slide 42 Risk 1. Cost of Risk calculated as LLPs of the period divided by average net client loans including repos
80Endnotes: Slides 43 to 53
These notes refer to the financial metrics and/or defined term presented on:
Slide 43 RoTE walk 1. Stated RoTE calculated as (i) stated net profit, TO (ii) average tangible equity excluding AT1
Slide 44 Balance sheet and liquidity 1. Based on S&P
Slide 46 Capital distribution 1. Cash payout ratio for 2022 is expected at 35%
Slide 51 Italy positioning 1. Market share of total loans and mutual funds as of September 2021. Regional market share of loans as of August 2021
2. Regional GDP data as of 2019, Istat
3. Calculated as (i) AuM products of UC Italy perimeter; TO (ii) market “Retail” products, net of institutional products and closed end
funds; from Assogestioni Report
4. Based on new production
5. Bankassurance P&C (CPI and protection) – Last available source related to 2021 refer to 2Q21
6. Refers to Household data as of 1Q21, ECB statistical Data Warehouse
7. Insurance premium refer to 2019 non-life insurance penetration excluding Motor. EU data refers to Germany, France and Spain.
Gross data from OECD, IVASS and Eiopa
Slide 52 Italy financial KPIs 1. 2021-24 CAGR gross of active portfolio management actions and disposals
2. 2021-24 CAGR gross of NII headwinds and disposals
3. For 2021 based on Underlying net profit and normalised tax rate
Slide 53 Italy industrial KPIs 1. Refer to net sales AuM 2022-24 cumulative
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