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Strategy - UniCredit

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Strategy - UniCredit Page 1 of 2 Home > Investors > Strategy STRATEGY UniCredit's investment decisions

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STRATEGY

UniCredit's investment decisions are driven by its strategy for growth in the four core markets, by the importance of EVA creation and clear governance, and by the group's divisional model – of which global product factories are a key element.

Strength in the four core markets

are a key element. Strength in the four core markets UniCredit aims to strengthen its position

UniCredit aims to strengthen its position in its four core markets: Italy, Germany, Austria, and Central and Eastern Europe (CEE). This is to be done by focusing on internal growth as well as by seizing new growth opportunities outside the group.

The goal is to become a market leader in each of these areas. The group has already proven its ability to grow in a variety of business areas, functioning successfully as a consolidator in the European banking market.

EVA creation and clear governance

European banking market. EVA creation and clear governance UniCredit's growth strategy hinges on creating a d

UniCredit's growth strategy hinges on creating added value for stakeholders.

Take, for example, the group’s CEE expansion strategy. CEE is a high-growth area, yet it has a more favorable political risk profile than other emerging areas. The CEE countries now generate nearly one-fifth of UniCredit's EVA.

An investment's ability to create value depends to a great degree on clear governance guidelines. Strong governance is a key factor in the group's investment policy.

Divisional model

in the group's investment policy. Divisional model UniCredit recognizes the importance of specialization. The

UniCredit recognizes the importance of specialization. The group utilizes a divisional business model that optimizes its ability to meet the needs of a variety of customer segments, offering personalized services.

UniCredit's divisional model is based on identifying well- defined business areas common to all of the markets in which the group operates: retail, corporate, private, investment banking and asset management. The emphasis is on creating specialized product factories and on centralizing support services.

To apply this model, UniCredit uses a multi-local approach. This approach is consistent with the group's goal of being recognized as a highly capable domestic player in each of the markets in which it is present. Emphasis is placed on the value of establishing a presence in local communities.

Global product factories

Global product factories are a key feature of the divisional model. They can help exploit the growth potential inherent in UniCredit's vast branch network.

The group has centralized production in the following business areas:

leasing

asset management

http://www.unicreditgroup.eu/en/Investors/Strategy.htm

11/18/2010

Strategy - UniCredit

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consumer credit

mortgages

investment banking

Centralization makes it possible to oversee the value chain, take advantage of synergies, and make use of UniCredit's size and diverse scope. In this way, the group can offer the best products and services to customers in all countries.

Disclaimer:

The above information includes forward looking statements concerning UniCredit’ outlook for the future, strategies, anticipated events based on management’ current vision that are not historical facts. Since these statements are based on assumptions about future events, the content is inherently uncertain; such forward-looking statements are not a reliable indicator of future performance. The effective results, events and performance could considerably deviate from these previsions due to, without limitations, (i) general economic conditions, among which in particular are the economic conditions of the business areas and the markets in which UniCredit and its subsidiaries operate, (ii) the performance of financial markets, including emerging markets, (iii) insolvency percentage of loans granted by UniCredit (iv) trend of existing and future litigations involving UniCredit, (v) level of interest rates, (vi) exchange rates, including the euro-dollar exchange rate, (vii) changes in competition levels, (viii) changes in laws and regulations in the Countries where UniCredit legal entities are active, changes in policies adopted by Central Banks and/or Italian or foreign governments, (ix) the impact of acquisitions, including the issue concerning their integration, (x) reorganization initiatives and (xi) general competitiveness factors locally, regionally, nationally and/or internationally. The use of the information contained in the document for personal investment decision-making purposes is made entirely at the user's own risk. Furthermore the said information are not to be understood as a public offering of financial products. Before entering into any financial transaction directly or indirectly based on the said information, users are advised to contact their bank or other authorized financial broker for confirmation of the validity and accuracy of the said information and of the appropriateness of any such operations in view of the user's personal needs, income, and economic or financial conditions. UniCredit does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the release date of the above mentioned document.

Updated on:

01.30.2009

http://www.unicreditgroup.eu/en/Investors/Strategy.htm

11/18/2010