Strategic Plan

2018 STRATEGIC PLAN FINANCIAL TARGETS

CET1 ratio at 12.6% Thanks to Organic Capital Generation Allowing for Substantial Dividend Pool

Higher Sustainable Return to Shareholders with RoTE at 11%

Net Profit of €5.3 bn

Significant Cost Containment Measures of €1.6 bn

Further Upside from Discontinuity Actions

MAIN STRATEGIC ACTIONS TO REACH TARGETS

c.18,200 FTE reduction including Sale of Ukraine and Pioneer JV

Exit or Restructuring of Poorly Performing Assets by End 2016

Simpler and More Integrated Group: Elimination of the Austrian Sub-holding with Direct Control of CEE Subsidiaries by UniCredit Holding; Stronger Central Governing Functions and Leaner Managerial Layers

Strong focus on High Growth and Capital Light Businesses: Wealth Management, CEE & Poland and CIB Transactional and Advisory Services

€1.2 bn Investments in Digital Evolution

OUR MISSION IS CONFIRMED

A Leading, Well-diversified Pan-European Commercial Banking Franchise

Acceleration on Execution to become More Efficient and More Profitable

Today, the Board of Directors of UniCredit approved the Strategic Plan and Group 3Q15 results. Federico Ghizzoni, CEO of UniCredit, commented:

"Today we approved a Plan envisaging ambitious goals for 2018, both in terms of profitability and capital, thus confirming the Group's capability to generate capital organically and distribute dividends. We aim at these goals in a persistently tough macroeconomic environment, marked by historically low interest rates and decelerating worldwide economic growth. The plan is rigorous and at the same time ambitious. Above all, it is a realistic Plan, as it is based on our managerial decisions and it is a totally self-financed Plan. Therefore, we are fully confident of its successful execution. We can now concentrate on reinforcing our European commercial bank franchise with significant cost containment measures and further discontinuity actions, and by exiting or restructuring poorly performing businesses. We are planning a considerable level of investments for the future, including €1.2 billion only in our Group's digital evolution."

As a result of the macro-economic scenario characterized by interest rates at historical lows and regulatory changes, which are impacting the European banking sector, the Board of Directors of UniCredit at its meeting on November 11^th, 2015 resolved to set out a new Strategic Plan outlining the business direction, structure and organization of UniCredit to ensure sustainable return to shareholders. The 2018 key targets are summarized below:

• A solid capital base, with a 12.6% CET1 ratio fully loaded pre-dividend distribution, above UniCredit's internal target of 11.5%;
• Reduction in operating expenses of €1.6 bn;
• A return on tangible capital of 11%, in excess of UniCredit's cost of equity;
• A substantial dividend pool available for distribution, corresponding to anaverage pay-out of c. 40% over the Strategic Plan.

UniCredit's Top Management execution will be focused on five key actions:

1. Acceleration of cost cutting measures in staff and other administrative expenses as well as streamlining corporate centres, aimed at staff cuts of c.18,200 FTEs by 2018;
2. Exit or restructuring of poorly performing businesses such as retail banking in Austria and leasing in Italy, on top of the ongoing rundown of the Non Core Division;
3. Strong focus on the new digital agenda, underpinned by €1.2 bn investments over the  2016-18 horizon, which will accelerate the Group's retail and corporate multi-channel transformation and create further discontinuity from traditional banking;
4. Becoming a simpler and more integrated Group, with the elimination of the Austrian sub-holding with direct shareholding control of CEE subsidiaries by UniCredit Holding (while preserving CEE Division know-how) by the end of 2016, strengthening central governing functions and focusing on commercial synergies between global platforms (CIB) and the Commercial Banks networks;
5. Leverage on growth businesses in CEE Region, Asset Management and Asset Gathering, increasing capital allocation towards CEE whilst increasing and rebalancing the revenue stream towards capital light businesses.

Unicredit confirms its mission as a well-diversified Pan-European commercial bank with a leading position across Western and Central European countries.

2018 KEY FINANCIAL TARGETS

GROUP

Net profit: €5.3 bn and RoTE at 11%

Total costs: €12.9 bn, with cost/income ratio of 50%

Cost of risk: 67bps

Capital: CET1 ratio fully loaded at 12.6%, higher than internal target of 11.5%, allowing for substantial dividend distribution

Loans to customers: €503 bn, with RWA at €425 bn

CORE BANK

Net profit: €6.3 bn and RoAC at 14%

Total costs: €12.8 bn, with cost/income ratio of 50%

Cost of risk: 53bps

Investor Relation

tel: +39 02 88624324

email: investorrelations@unicredit.eu

Media Relation

tel: +39 02 88623569

email: mediarelations@unicredit.eu