2006-2008 Business Plan Update

1. 2006-2008 Business Plan Update Lino MoscatelliManaging Director KEPLER EUROPEAN MIDCAP FINANCIALS CONFERENCE London - November 30, 2006

2. Banca CR Firenze Group Structure Retail Banking Asset Management Local Tax Collection IT Services Consumer credit & Financial Services Scope of consolidation Banca CR Firenze 50% Findomestic 100% 60% 51% Infogroup CR Pistoia Centrovita 51% 80% 100% CRF Gestion Int Citylife CR Civitavecchia 43,5% Centro Leasing 73,6% CR Orvieto 47,7% Centro Factoring 68,1% 100% Gefil CR Spezia 56,2% BCRF Romania

3. 2003 2004 2005 2006 2007 2008 2006 – 2008 Strategy 2003 – 2005 Commercial Segmentation 2006 – 2008 Growth & Efficiency • An increase in profitability - sustainable in time - made possible by an important rise in total financial assets and by a strong support to enhance specialised financial services which are accessory to the traditional banking activity (consumer credit, bancassurance, pension schemes, leasing and factoring)

4. Vision and Mission The Business Plan encompasses the company’s Vision and Mission • Vision • A solid, competitive group strongly customer-oriented, tending towards value creation, sustainable in time, and incessantly growing in terms of organic momentum and innovation. All of which made possible thanks to the acknowledged wide network, the firm link with its business territories and the expansion towards the adjacent ones. • Mission • Offering our customers professionalism, multiple solutions and distinct product excellence through the bank’s distribution and operations models which coherently meet customers’ own demands and feature competitive, risk-adequate pricing. • A reference point for the local economy’s growth. • Integrity, transparency and social responsibility accomplished by a sound and prudent business management.

5. An update on Key Issues • New starting point • The 2005 net income was reported at Euro 149 million over the previous Euro 171 million after the implementation of the Bank of Italy’s new directives on the subject of fiscal treatment of real estate revaluation • The impacts of IAS/IFRS are clearer now. • A shareholders equity variation • Final result of the share capital increases: • no. 1,378,621,589 shares / Euro 827,172,953 • The equity increase accounted in 9M 2006 is due to non-distributed net income. Specifically, the SPIMI stake disposal has provided a one-off net contribution of Euro 89 million. • The new macroeconomic scenario • The 2006-2007-2008 interest rates are 50 bps higher • As Group assets are very sensitive to rate changes, these have impacted positively • Achieved targets • Staff turnover is higher then expected • CR Mirandola merged in Banca CR Firenze • The tax collection business has been sold (CERIT & SRT) • Findomestic 2006 net income will be slightly lower then expected

6. 2005 Proforma Figures: our starting point Euro million

7. Business Units Composition  : Customers to be switched to different Business Units once the commercial model will be applied to other banks in the Group.

8. Retail Corporate & Private Bkg. Finance Wealth Mng. Corporate center 2005 Business Unit Contribution • Half of the net income is generated by the Retail B.U. • The result achieved by the Corporate Center comprises the contribution of Findomestic which accounts for 35% of Total Net Income with ca 300 Mln equity absorption and a 14.8% Rorac. • All Business Units create value, however, there are opportunties to increase the contribution of the Private Bkg & Corporate B.U. Total income Equity Net income Figures as at 2005 FY (*) 2005 Cost of equity: 7.5% (**) For regulatory purposes 50% of Findomestic’s RWA have to be included

9. 2005 B.U. Contribution: a closer look Euro million

10. Interest rates Interest rates (old) GDP 2006-2008 Macroeconomic Scenario • The market spread increase on short term volumes ranges from 4.5% for 2005 to 4.7% in 2008. • In the medium-long term class, there is substantial stability.

11. 2008 New Main Targets GROWTH QUALITY OF CUSTOMER RELATION COST CONTROL MULTI-CHANNEL APPROACH • The 2005 figures have been adjusted to include the transfers of Cerit and S.R.T. stakes (tax collection) to Riscossione Tributi Spa, • the addition of Banca C.R. Firenze Romania to the Group and the transfer of all the management functions of the IT services to Infogroup Spa.

12. 2006-2008 plan effect 2005 figures:starting point 2008 Targets Breakdown +8.7% • Net profit will increase in 2008 compared to 2005 totalling Euro 91 million • The average yearly growth of revenues will reach 8% • Net interest margin +10% • Strongly curbing costs • Cost/income ratio at 55% (ex 61%) • Personnel expences +4.1% • Other net operating costs +4.9% • Upkeeping the credit quality level • 2005 adjustment derives from FTA adjustments • 2006-2008 loans provisions will have a stable weight of about 30-33 bps per year +4.4% 1.110 +9.6% +17.2% +17.5% +12.4% 240 645 38 151 35 CAGR Euro million

13. B.U. : Corporate & Private Bkg. • Alongside the management of the corporate customers, the bank also manages entrepreneur’s assets through the Private Banking Centers: • As at 31 December 2005 the bank’s business area consisted of 15 Corporate Centers and 12 Private Banking Centers (total 339 employees) • operators concentrating more on direct, more profitable channels • Development opportunities exist in those territories where no branches are operating. To seize these opportunities, the commercial business model of the parent company will be applied to the other banks of the Group. • Between 2006 and 2008 about 13% of BU employees will retire and a younger staff will step in to replace them.

14. Risk adjusted total income EVA Amount granted Corporate Customers distribution by EVA • On average, companies with a rating that is above B6 create value. • Value extraction opportunities exist in the intermediate rating classes through the encrease of the exposure . • Therefore, exposure towards the worst classeswill be reduced. EVA > 0 EVA < 0 Loan portfolio by rating Customers by rating EVA per customer (avg.)/Rating class Amount utilized Amount utilized/granted (%)

15. Customer relationship improvement • Less risky customers: increase of the share of wallet thanks to • opportunities coming from Basel II • better positioning in the mid/long term loans section • Targeted share of wallet depending on the size of the customer (managing the multi-banking risk) BCRF’s share of wallet/amount granted Micro Medium corporates 70% Large corporates Solid line: targeted SoW 60% 50% 40% 30% Dotted line: current SoW 20% 10% 0% Rating classes A1-A4 B1-B4 B5-B8 C1-C2 Corporate: best clients TARGETED SHARE of WALLET (SoW)

16. Corporate & Private Bkg. : 2008 P&L account • About 10 new Corporate Centers and 10 new Private Bkg. Centers are to be opened, mainly for other banks in the Group • Customers switched from retail branches • Customer acquisitions and relationship improvements • Strengthening the Corporate Finance unit • Greater focus on the mid-corporate segment and on Corporate segment market share regaining: • exploiting the opportunities coming from Basel II • improving our position in the mid/long term loans section • Identifying and managing the best clients: • Greater exposures for the best-class ratings • Reduced exposure for the worst classes • A better mix between profitability and cost of risk Euro million * The 2005 figures have been restated hypothesizing that all other banks of the Group have completed their switch to the new commercial model.

17. 19 6 6 7 Rome Core business area Bologna Italy 21 B.U. : Retail Banking BRANCH MARKET SHARE: Italy & core business area, new areas • The business unit strategy: • To defend the market share in the core business area strenthening our placing power • To build up the market share in new areas • Between 2006 and 2008 about 8% of BU employees will retire and a younger staff will step in to replace them. • As at 31 December 2005 there were a total of 3,377 employees

18. Retail Banking - 2 RETAIL CUSTOMERS RATIOS: 2005 FIGURES & CHANGE VS.2004 Loss ratios Cross-selling ratio Acquisition ratios +0.8% +0.7% +1.7% -1.0% +0.1% -0.9% -1.0% +0.8% +0.03% +0.02% +0.08% +0.03% Individuals Micro business Individuals Micro business Individuals Micro business • Customer satisfaction in the retail unit is good. • The cross-selling ratio is growing thanks to a greater use of Customer Relationship Management (CRM) tools. • It is necessary to increase the customer acquisition figure. This will be achieved by opening new branches and by implementing strong development projects in the territories where branches already operate. Sources: ABI surveys (ABI – Association of the Italian Banks)

19. BCRF individual Segment avg. Internet users Retail Banking - 3 • Individual customers who are Internet channel users are the most satisfied. • the loss ratio is lower than the BCRF mean while the cross-selling ratio is higher Customers satisfaction level Internet BCRF individual 3 < level > 8 • Small business customers who use the Internet channel achieved the highest satisfaction level. Turnover< 1.5 (Euro mil.) 1.5 <Turnover < 2.5 (Euro mil.)

20. ABI sample Retail Banking - 4 • There is a penetration gap of personal loans, insurance products, mortgage loans and revolving cards compared to the domestic banking sample • In the 2006-2008 period our company endeavours shall be concentrated on intensifying the following: • Retirement savingsproducts: creation of a specialised team which will be focused on the subscription of individual and collective pension schemes • Insurance products: • Specific insurance products designed by Centrovita (bancassurance) • Protection products • Mortagage loans centers: using the special-purpose branches as reference points for all indirect channels (Internet, brokers, real estate agencies, financial advisors) • Personal loans & revolving cards: joint-marketing agreements with Findomestic for the launch of advertising campaigns and for the commercialisation of their own new products (salary-guaranteed loans) Product penetration index* BCRF * Product penetration on customers acquired during 2005

21. Growth = 21 more branches SATU MARE BAIA MARE IASI ORODEA PIATRA NEAMT CLUJ NAPOCA TIRGU MURES ARAD TIMISOARA SIBIU BRASOV GALATI RIMNICU VILCEA PLOIESTI PITESTI BUCAREST CRAJOVA CONSTANZA Current branches 2006-2008 branch openings Retail Banking: BCRF Romania S.A. • As at 31/12/2005 the network recordered 9 branches. The network currently consists of 11 branches (Satu Mare, Timisoara, Constanza, Crajova and 7 in Bucharest). • Strengthening the position in the area thanks to 30 branches (19 within 2006) • Expanding the retail customer base in Bucharest and in the principal cities • Supporting Italian-Romanian enterprises • Hiring roughly 160 people • Steadfast growth, profitability and synergies with the group

22. Retail Banking: 2008 P&L account • 59 new branch openings some of which in unison with the financial advisors network • the acquisition of about 12,000 new customers • a further 13,000 new customers acquired thanks to specific targeted actions • 6 new specialised mortgage-loans centers openings • 21 new branch openings in Romania • Improvement of the customer-retention ratio and of the share of wallet • Increase in the cross-selling ratio, in particular, for high-potential customers • Special focus on: • mortgage loans • personal loans jointly marketed with Findomestic • pension schemes and insurance products Euro million * The 2005 figures have been restated hypothesizing that all other banks of the Group have completed their switch to the new commercial model.

23. B.U. : Wealth Management CRF GESTIONINTERNATIONALE SA(mutual funds) • 2005 managed funds: 6.5 billion Euro CENTROVITA(bancassurance) • 2005 volumes: 2.6 billion Euro • Mutual funds: 31% • Unit & Index linked: 67% • other: 2% • Composition of the bancassurance volumes by legal entities: • CR Firenze: 79% • other banks: 21% • others: 1% • Insurance product factory for Findomestic Group (creditor protection insurance – CPI) Euro million * The 2005 figures have been restated hypothesizing that all other banks of the Group have completed their switch to the new commercial model.

24. B.U. : Corporate Center • Increase efficiency: 140 units headcount reduction • Credit quality improvement vs 2005 • Income from companies accounted with the equity method: +15 million in 2008 (mainly from Findomestic, Centro Leasing, Centro Factoring) • Findomestic will close 2006 lower then expected (below 2005 level). 8% net income growth is expected in 2007 and 2008 • As at 2008 the net income contribution of Findomestic will be at 25% Euro million * The 2005 figures have been restated hypothesizing that all other banks of the Group have completed their switch to the new commercial model.

25. Retail Wealth Mng. Corporate & Private Bkg. Finance Corporate center 2008 Targets by Business Unit Total income Equity Net income • When plan targets will be attained: • Loans volume increase will foster the growth of the Corporate BU • Although predominant, the weight of Retail BU will decrease • Corporate Center net income contribution will increase due to • Efficiency improvement • Credit quality improvement 2005: inner circle - 2008: outer circle Euro million

26. Consumer CreditA Changing Business

27. Consumer Credit in Italy Point of sale • 1984–Findomestic begins to operate in a greatly underdeveloped domestic market: • indirect channels • poor offer • The 1990s– Findomestic develops the direct channels • personal loan • revolving credit card • The 2000s– Findomestic’s four portfolio lines are now benchmarks providing: • risk diversification • high cross-selling opportunities • outstanding profitability Financing company Customer Customer Financing company New business volumes POS - Point of Sale: medium and large chain stores

28. SGL** Personal loans Cards POS Vehicle Recent Market Trends New business volumes (Italy*) Direct 39% Direct 69% Direct 17% (excluding vehicle financing) • The recent growth of direct channels over the indirect ones is due to: • increased competition, particulary at large chain stores, due to the attractiveness of the business sector. Less know-how is requested from new operators • leaders concentrating more on direct, more profitable channels • The main players have been able to keep profitability and cost of risk stable thanks to their improved cross-selling capabilities and their improved expertise on the exploitation of their customer database * ASSOFIN, The Association of Italian Financial Companies ** SGL: Salary-Guaranteed Loans

29. What Happened in 2005 B U S I N E S S T R E N D S E C O N O M I C S INTEREST MARGIN • In spite of the 2005 decrease in consumer consumption, the consumer credit market continued to grow because of Italian households low level of indebtedness: • new business volumes +16% • average outstanding +30% • Growth was brisk for cards and salary-guaranteed loans (SGL). Personal loans still comprise a relevant portion. • The average loan duration continues to stretch out in time • < 3 mos 9% (10% in 2004) • 3 - 12 mos 22% (25% in 2004) • 12 – 60 mos 54% (53% in 2004) • > 60 mos 6% ( 4% in 2004) • High credit quality confirmed • gross NPLs +10% (less then loans growth) • gross NPLs/gross loans 3.35% • net NPLs -5% thanks to increased coverage • net NPLS/net loans 1.33% • Margin reduction was due to the shrinkage of spread as a consequence of increased competition COMMISSIONS • Commissions grew as a result of: • more disintermediation • higher commissions earned on a greater number of ancillary products (insurance) OPERATIVE COSTS • Growth in volumes allowed economies of scale; however these were insufficient to off-set the shrinkage of margins COST OF RISK* • The cost of risk decreased to 1.9% (ex 2.1%) NET INCOME • Reduced by 17 bps (as % of average outstanding) Source: ASSOFIN-KPMG, “2005-2004 consumer credit market evolution”. Sample composed of 72% of the Assofin members. *Net loans adjustments/Gross average outstanding.

30. SGL is the only indirect channel to increase its weigth SGL Cards Direct 50% Direct 39% Personal loans Volumes Vehicles POS Expected Market Trends Estimated YoY growth 2006-2010E C A G R S G L* 23-24% Highgrowthproducts PERSONAL LOANS 19-20% C A R D S 15-16% Estimated YoY growth • Indirect channels shall continue on the downward trend and their share shall continue to decrease over the total numbers of loans granted • Direct channels shall continue their upward trend, in line with the past and with the market potential • SGL is the indirect product that shall increase in share importance VEHICLES 6-7% Low growth products P O S 2-3% Source: Internal forecast and Assofin figures *SGL: Salary-Guaranteed Loans

31. Findomestic: How to Approach the Future • Findomestic will approve its new business plan at the beginning of 2007. • The strategic development guidelines should... ...stabilize its market share… …while preserving an adequate profitability level… …thanks to a remarkable reduction of the customer acquisition cost… …and to the preservationof a risk cost at level lower then that of the market (it was half in 2005). • Leadership preservation for the POSchannel with a selective approach • The channel remains an important source for customer acquisition but this should not be so at all costs • Greater use of credit card product • Development of direct acquisitions through: • the media channel: more internet, TV, radio... • A brokers network • to reach geographical areas not currently covered by a branch and reduce fixed costs • Greater investment in marketing to acquire customers and to support brand recognition • New products: • a continued growth for the CREDIAL brand (a company operating in sub-prime, 100%-owned) → media channel • establishment of a newco. forSGL (salary guaranteed loans) • a continued high level of innovation in credit card products • othersproducts to be disclosed at a later stage

32. Personal loans Stable contribution from SGL Cards POS Vehicle Direct 55-60% Direct 55% Volumes SGL Findomestic in 2010 • Higher profitability thanks to improved production mix • the contribution of the direct channels shall be close to 60% • salary-guaranteed loans will become a standard offer element • The contribution importance of the POS channel will decrease the most • Higher efficiency: cost/income ratio around 42% (ex 47%) Reduced cost / income ratio • Sale force restructuring • Procedures adapted to the new direct acquisition methods • Introduction of advanced technical instruments for the management of credit recovery • Non-core procedures to be outsourced