A p r i l 2 0 0 3

2 0 0 2 R e s u l t s

2 0 0 3 - 2 0 0 5 B u s i n e s s P l a n

Specialized units provided by Sanpaolo IMI and BNP Paribas

BANCA CR FIRENZE(Parent Company)

Infogroup Datacentro

Centro

Telemktg.Citylife

PerseoFinance

CR PISTOIAe PESCIA CR ORVIETO CR MIRANDOLA

CRCIVITAVECCHIA

FindomesticLiberamente

Network

Product Companies Service Companies

Consumer Credit

FinancialPlanners

Centrovita

CentroLeasing

CentroFactoring

Cerit CR FirenzeGest. Int.le

100.0%

51.0%

51.0% 51.0%73.6% 73.8%

80.0%

50.0%

41.0% 46.0%

ArvalItalia

22.5% 100.0% 100.0%

97.1%50.0%

60.0%

Changes in the Group composition

2

3

INTEREST MARGIN 588.4 568.8 + 3.5 %

2002 2001 PF Change

Euro mn

NON-INTEREST INCOME 332.0 338.3 - 1.9 %

Net commissions & other net income 323.6 324.5 - 0.3 %

of which net commissions 230.2 244.7 - 5.9 %

Trading 8.4 13.8 -38.9 %

Equity investments 15.0 10.0 +50.0 %

TOTAL INCOME 954.8 933.6 + 2.3 %

2002 Consolidated results

Dividends 19.4 16.5 +17.6 %

2002 Consolidated results

TOTAL COSTS 659.1 638.5 + 3.2 % +1.4 % - 1.7 %

2002 2001 PF Change Ex FINDOMESTIC Banca CR Firenze

Euro mn

Personnel expenses 370.1 364.5 +1.5 % FLAT - 1.5 %

Other costs 223.7 210.1 +6.5 % +3.9 % - 3.5 %

Depreciation 65.3 64.0 +2.1 % +2.4 % +3.2 %

OPERATING INCOME 295.7 295.1 + 0.2 %

Goodwill amortisation 20.9 21.1 - 0.9 %

Total provisions 97.1 86.9 +11.7 %

Exceptionals 13.0 12.2 +6.6 %

Taxes & minorities 108.1 113.4 - 4.7 %

GROUP NET INCOME 82.6 92.2* - 10.5 %

4* 2001 net income benefited by Euro 6.4 mn transfer from General Banking Risk reserve

DIRECT FUNDING 12,340 11,058 + 11.6%

2002 2001 Change

INDIRECT FUNDING 13,956 14,092 - 1.0%

Assets under custody 5,758 6,064 - 5.0%

Assets under management 8,198 8,028 +2.1%

of which Discretionary accs. 1,948 2,340 - 16.7%

Mutual funds 4,471 4,089 + 9.3%

Insurance Products 1,779 1,598 +11.3%

TOTAL FINANCIAL ASSETS 26,296 25,150 + 4.6%

Euro mn

Total Financial Assets

5

Corporate37%

Retail23%

Small business18%

Consumer credit19%

Public bodies3%

Portfolio composition: by segment, average - by sector, B CR Firenze

Customers loans

6

Growth, diversification and balance

25%

7% 7% 6% 6%10%

5%2%

16% 16%

12.211.611.2

1.6 2.02.4

2000 PF 2001 PF 2002E

uro

bln

Customer loans - Findomestic

Indu

strial

pro

d.

Com

mer

ce

Text

ile

Bui

ldin

gHot

els

& tra

nsp.

Agr

icol

.& foo

d

Min

eral

& E

nerg

y

Fam

ilies

Oth

ers

Com

mun

icat

io

n

1.12% 1.14%1.06%

Credit quality

Close loan quality monitoring

7

51.9%52.6%

54.4%

2000 PF 2001 PF 2002

2.29% 2.36%2.28%

Net NPLs/Net loans

Gross NPLs/Gross loansNet NPLs cover ratioGross NPLs Net NPLs

261.5281 284.3

125.8 133.2 129.7

2000 PF 2001 PF 2002

Eu

ro m

n

1999 NPL securitisation recoveries: far better thenthe best case scenario

Credit quality - Perseo

8

0

45

90

M2000

J S D M2001

J S D M2002

J S D

Total recovered Scenario 1 Scenario 2

Scenario 3 Scenario 4

Eu

ro m

n

2003-05 Business Plan

9

0%

8%

16%

24%

32%

0% 10% 20% 30%

Branch market share

Fund

ing

mar

ket sh

are

Index 1.21

Index 1.15

Index 1.54

Banca CR Firenze Group

Index 0.97

Comparison with other regional banks shows there is no local roots advantage

Competitive positioning

10

0%

45%

0.00 1.00 2.00Penetration index*

Mar

ket sh

are

11.2%**

Firenze

TerniArezzo

Grosseto

ModenaViterbo

Massa

Prato

Siena

Livorno

PisaPerugia

Mantova

Pistoia

Funding

Lucca

8.6%**

Lending

0%

25%

0.00 1.00 2.00Penetration index*

Mar

ket sh

are

Firenze

Terni

ArezzoGrosseto

Modena

Viterbo

MassaPrato

SienaLivorno

Pisa

Perugia

Mantova

Pistoia

Lucca

Highly diversified market share and penetration index in the different local areas

11* Market share / Employee market share - as at 30/09/02 ** B.CR Firenze Group average

Competitive positioning

Much room for improvement

12

Performance analysis

Corporate macro-segment shows a negative performance

30.2%

6.1%

-1.3%

-12.2%

77.2%

Retail Affluent Private Bkg. SmallBusiness

Corporate

% N

et

inc

om

e*

* B. CR Firenze - Contribution to commercial banking net income - 2002

656,000Mass Market

140,000Affluent

85,000Small Business

4,000Private Bkg

15,000Corporate

Two markets - Retail Banking & Corporate & Private Banking

Transfer of the Small Business segment to the Retail market

Two vertically organized marketing Divisions

New marketing model

RETAIL BRANCHES CORPORATE CENTERS PRIVATE BKG. CENTERS

CORPORATE & PRIVATE BANKING DIVISIONRETAIL DIVISION

13

C U S T O M E R B A S E

Retail DivisionRetail

Division

F O C U S O N Industrialization of marketing actions

(CRM)

Packaging of offer

Reduction of service costs

Further customization of relationship

Increase in cross- and up-selling

Continuous development of financial planners network

Targets and Actions

FAMILY

SMALL BUSINESS

AFFLUENT

14

FAMILYFAMILY

Pro-active marketing campaigns

Propensity score

Fine-tuning of customer knowledge (Customer Insight techniques)

Identification of priority products (Next Product )

Cluster analysis

Reduction in portfolio managers from 408 to 345 (-15%)

Event management

Event definition and link to marketing actions

15

Targets and Actions

Industrialization of marketing actions (CRM)

Packaging of offer

Reduction of service costs

SMALLBUSINESS

SMALLBUSINESS

New integrated loan and marketing score platform

time saving (-30%)

Outbound and inbound call centers

New catalogue design

59% reduction in number of products from 506 to 207

8 new package products:4 deposit and 4 loan products

Revision and simplification of the credit granting process

Reduction in portfolio managers from 326 to 245 (-25%)

16

Targets and Actions

Industrialization of marketing actions (CRM)

Packaging of offer

Reduction of service costs

17

AFFLUENTAFFLUENT

Extension of portfolio model to all branches

Implementation of Personal Financial Planning

Portfolios adjustment to risk profile / Increase in commissions

Asset under custody portfolio advisory

Increase in portfolio managers from 154 to 313 (+103%)

Financial planners: 200 by 2005

Targets and Actions

Further customization of relationship

Increase in cross- and up-selling

Continuous development of financial planners network

Corporate & Private Bkg. Division

Corporate & Private Bkg. Division

Customization of relationship and Client Plan introduction

Monitoring of credit quality

Increase in penetration and focusing on areas with great development potential

New service model: dedicated portfolio managers

Dedicated offer development

Sinergies with Corporate segment

F O C U S O N

CORPORATES

PRIVATE BANKING

18

Targets and Actions

CORPORATES

CORPORATES

19

Perugia

Siena

Arezzo

Avenza

Empoli

Montevarchi

Firenze EstFirenze Ovest

Grosseto

Pisa-Livorno

Prato

Santa Croce

Viareggio

12 Corporate Centers + 2 Aid points120 portfolio managers

Dedicated marketing structure

Top foreign trade advisory

Leading role of portfolio managers

40 specialized consultants

Client Plan introduction

Service model

Targets and Actions

BOLOGNA

Sesto F.no

Profitable capital allocation

Implementation of Internal Rating system

Fine-tuning of the present pricing method

Risk-adjusted pricing

Switch to customers with higher credit

standing and lower risk/profitability ratio

20

Pricing

Risk(Internal Rating)

Target curve

High Low

Sp

read

Targets and ActionsCORPORATE

SCORPORATE

S

PRIVATEBANKINGPRIVATEBANKING

Siena

Arezzo

Empoli

Firenze Est

Firenze Ovest

Prato

Viareggio

Corner Avenza

Montevarchi

Corner Grosseto

Corner Pisa-

LivornoCorner

Santa Croce

Corner Sesto F.no

Corner Perugia

8 Investment Centers and 6 Corners at the Corporate Centers47 portfolio managers

Dedicated marketing structure

Investment Centers

Leading role of portfolio managers

Dedicated Personal Financial Planning

Service model

21

Targets and Actions

PRIVATEBANKINGPRIVATEBANKING

Introduction of Discretionary Accounts with prior consent

Customized Discretionary Accounts (multibrand & multimanager)

Alternative investments

Funds of hedge funds

Funds of private equity funds

Real Estate funds

New derivatives platform

Specialized advisory

Fiscal and succession advisory services

Tax planning

22

Dedicated offer

Targets and Actions

2003 - 05 TARGETS

23

0.101

0.138

0.084

0.1

0.083

0.067

0.076

0.05

0.1

0.15

2002 2003 2004 2005

Eu

ro

EPS 2003-05

+ 22% CAGR

24

The new marketing model will bring important improvement in profitability

Target lineBase line

Increase in profitability from every segment

Corporate macro-segment will reach a positive contribution

2002 & 2005 total income breakdown

25

+4.2 %

+21.2 %

Retail Affluent

144.3

88.8

TOTAL INCOME

Private Banking

14.0+15.3 %

+15.6 %

Corporate Center

43.9

Small Business

103.4

118.3

Corporate Finance

18.5

Shareholdings

92.8 624.0

+16.2 %

+25.0 %+36.7 %

-28.8 %*+12.1 %

2002 total income 2005 total income increase

* Negative performance due to 2002 Eptaconsors extraordinary dividend

70.2%

66.3%

62.6%

67.1%

9.7%

14.4%

11.3%

8.9%

2002 2003 2004 2005

ROE and Cost/Income

26

Net growth in overall profitability

Business plan implementation costs will have an impact mainly in 2003

Cost / IncomeROE

Costs breakdown to 2005

27

TOTAL COSTS 659.1 726.0 + 3.2% +1.5 % +1.7 %

2002 2005 Change FINDOMESTIC B. CR Firenze CAGR Excluded

Euro mn

Personnel expenses 370.1 386.0 + 1.4 % + 0.4 % + 0.4 %

Other costs 223.7 264.0 + 5.7 % + 2.9 % + 3.4 %

Depriciation 65.3 76.0 + 5.0 % + 4.3 % + 2.9 %

A p r i l 2 0 0 3

2 0 0 2 R e s u l t s

2 0 0 3 - 2 0 0 5 B u s i n e s s P l a n

Back-up slides

28

Capital ratios

TIER 1* 896.5 785.6 + 14.1%

2002 2001 Change

Euro mn

TIER 2 608.5 454.1 + 34.0% Deductions 114.5 124.0 - 7.6%

REGULATORY CAPITAL 1,390.4 1,115.7 + 24.6 %

SOLVENCY RATIO 9.8% 8.3% + 150 bp

TIER 1 RATIO 6.2% 5.7% + 50 bp

* Core capital - No preference shares issued 29

GDP +1.4% + 2.6% + 2.5%

2003 2004 2005

Domestic Demand +2.0% + 2.5% + 2.5%

Inflation +2.2% + 2.1% + 1.7%

Customer Loans +5.4% + 6.2% + 6.1%

Direct funding +4.7% + 5.1% + 5.1%

Spread

(Mk-up+Mk-down) +3.5% + 3.4% + 3.4%

Prometeia, December 2002

Macroeconomic scenario

30

-161

-81 -83 -82

-250

-300

-150

0

1999 2000 2001 2002 2005

Banks’ headcount reduction

370

383 383 386

300

420

2002 2003 2004 2005

Personnel expenses: +1.4% CAGR

Personnel

31

Group Banks

Headcount reduction

Incentive plan (around Euro 12,5 million)

Old / New personnel salary ratio around 2:1

Cerit

Sector regulations: use of sector redundancy fund

Findomestic Banca – Consumer credit

Findomestic Banca 3.97

BNL 3.27

Fiatsava 2.92

Destsche Bank Prestitempo 2.24Agos Itafinco 2.04 2002 new business

volume

Vehicles Home appliances Personal Loans Revolving2003 new business trend

32

25.6%25.0%

21.0%28.4%

Personal loans

Home appliances

Vehicle financing

Revolving cards

2003 New business

2001 2002 2001 2002

NPLs ratio Cover ratio

0.95% 1.12% 125 118