Bper Banca — Management Reports 2022

Jun 10, 2022

2022-2025 Group Business Plan

2022-2025 BUSINESS PLAN

Milan, June 10th 2022

Disclaimer

This document has been prepared by BPER Banca S.p.A. solely for information purposes and for use in presentations of the Group's strategies and financials. The information contained herein has not been independently verified. No warranty, either express or implied, can be given as to the content of this document. Consequently, no reliance should be placed on the completeness, correctness or accuracy of the information or opinions contained herein. BPER Banca S.p.A., its advisors and representatives shall not be held liable (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content. The forward-looking information contained herein has been prepared on the basis of assumptions which may prove to be incorrect and, accordingly, results presented herein may vary. No part of this document may be regarded as forming the basis of any contract or agreement. The information contained herein may not be reproduced, published or distributed, in whole or in part, for any purpose whatsoever.

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Annexes

A STORY OF GROWTH

Recent M&As have enabled the Group to make a major leap in size and reach a national scale

1. Number excluding 140 branches closed in May 2022 and subsequent deconsolidation/ new rationalisation. It does not include the branch of BPER Bank Luxembourg 2. 2017 headcount as reported in the financial statements

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A STORY OF GROWTH

Performance in recent years reflects strong resilience and the ability to improve, including through the management of extraordinary corporate transactions

1. From 2009 to 2021

2. Since ECB supervision started

3. CET1 2020 proforma reflecting capital increase to purchase former UBI/ISP Business Unit

Over the last 12-18 months important initiatives have already been completed...

	2021				2022
AREAS	Q1	Q2	Q3	Q4	Q1	Q2
GOVERNANCE	✓ Redefinition of the organisational structure	✓ New ESG Governance	✓ Revision of delegated power system
M&A	✓ Integration of former UBI – ISP business unit					✓ Lanterna transaction (closing of Carige deal)
INDUSTRIAL ASPECTS	✓ Regional HO simplification		✓ Specialisation in credit underwriting	✓ Rationalisation of st 1 batch of branches (~100)	✓ Kick-off of Business Plan priority projects	✓ Rationalisation of nd 2 batch of branches (~140)
REAL ESTATE			✓ One single HQ location	✓ Additional executive facility in Milan (Diamantino HQ)
HR		✓ Strengthening of the Management Team	✓ HC increase for new businesses	✓ Workforce optimisation	✓ MBO/LTI revision
IT/ TECHNOLOGY			✓ Increase IT team headcount		✓ New CRM Salesforce ✓ Smart CBI	✓ Release of new App

A STORY OF GROWTH

… which will now enable the major evolution planned in the Group's new Business Plan for 2022-2025

SCALE	• Nationwide player with strong roots in the country's richest regions
BUSINESS MODEL	• "Multi-specialist" bank with proprietary product factories and specialised distribution channels • Focus on core and capital light businesses and product factories • Selective divestment of non core and/or low value businesses
REVENUE GENERATION MODEL	• Acceleration of fee-based revenue streams by leveraging multiple growth engines: - Wealth / Asset Management - CIB/ Advisory - NRRP - Bancassurance - Private / Personal Banking - …
CREDIT MODEL	• Completion of de-risking including via a major disposal plan and the evolution of the non-performing loan management framework • Evolution of credit governance (policy, models, analytics) and specialisation of underwriting processes/tools to support growth in volumes, productivity/ response time and risk-adjusted profitability
OPERATING MODEL	• Simple digital bank, with productivity levels aiming at market best practice • Extensive transformation of the IT factory
HUMAN CAPITAL	• Reinforcing the Management Team including via new recruits from the market • Hiring plan / redeployment of resources to new priority initiatives
ESG	• Concrete plan to support internal/external transition to a low-carbon economy • Outreach to communities and development of educational programmes for young people • Further progress to sustainable leadership
CAPITAL STRENGTH AND SHAREHOLDER REMUNERATION	• Capitalisation levels consistent with the Group's new risk profile • Considerable increase in shareholder remuneration thanks to less capital-intensive model and higher levels of profitability

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Annexes

The acquisition of Carige rests on solid financial foundations and opens up new value generation opportunities

Major synergies identified in revenues and especially in costs and capital; BPER proven track record in integration processes

expensed in 2022. Payment of exit penalties on existing agreements conservatively factored in to a maximum extent (~220 M€)

Agreement for the disposal of 48 branches to leading market player finalised to solve potential competition authority constraints

OVERVIEW OF DISPOSAL SCOPE

The transaction is expected to solve potential Competition Authority constraints arising from the acquisition of Carige and from the previous acquisition of Unipol Banca

• Branches: 48 (o.w. 40 from Carige network and 8 from Banco di Sardegna, mainly located in Liguria and Sardinia)
• Loans to customers: ~1.3 B€
• Total funding: ~2.6 B€
• RWAs: ~0.6 B€
• Customers: ~100k
• The scope includes assets and liabilities linked to the perimeter of the 48 branches held for sale; it does not include any central offices or semi-central units

HIGHLIGHTS OF THE TRANSACTION

• Disposal for cash consideration
• Expected transaction timeline:
• o February 2023: closing and IT migration of branches

The business model involves vertical integration of production/distribution and selection of the Businesses on which to focus

Disposal of the merchant acquiring business

Deconsolidation will deliver major benefits in terms of RWA reduction and one-off capital upside, to be leveraged for core business growth

1. One-off impact being quantified

2. Pre-tax Group profitability, inclusive of intragroup funding to Group companies

Extraordinary transactions timeline defined, which will make it possible to re-focus the Group business model within the first 12-18 months of the Plan

EXPECTED TIMING

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Annexes

The Group's ambition at 2025: key economic/financial targets

Scenario with growth expectations despite uncertain environment; high inflation and steadily rising rates (with further potential upside)

KEY DYNAMICS

• Growth expectations conditioned by the Russia-Ukraine conflict
• Significant inflationary pressure but economy looks resilient
• More restrictive monetary policies with consequent gradual increase in rates
• Loans to households and businesses on an uptrend, despite revised expectations, with rates and spreads up significantly
• Lower saving propensity, higher risk aversion and negative stock market contribution are conditioning the growth of indirect deposits and assets under management in the immediate term
• Increased risk profile for businesses in 2022, returning to normal from 2023

Business Plan key metrics

		2021 normalised1	2025
	OPERATING INCOME	3,380	~4,370
INCOME	OPERATING COSTS	(2,099)	~(2,530)
STATEMENT	OTHER COSTS2	(173)	~(90)
(M€)	LLPs	(528)	~(590)
	NET PROFIT	384	~800
	COST TO INCOME	~62%	< 58%
	COST OF RISK (bps)	67	~60
KPIs	GROSS NPE RATIO	4.9%	~ 3.6%
(%)	ROTE	n.s.	> 10%
	CET1 RATIO3	13.5%	> 13%
	PAYOUT	~ 20% 4	~ 50%

1. 2021 BPER stand-alone net profit calculated at assumed Tax Rate of 28% on gross profit of 580M€ and minority interests of 34M€. For one-off items, please see press release on the 2021 annual report

2. Net profit at 2025 factors in 50 M€ worth of prudentially estimated provisions for contributions to banking system funds

Progression with significant results as early as from the first years of the plan

2021 normalised standalone

1. 2022 CET 1 reflects upside from DTAs

ECONOMIC AND FINANCIAL TARGETS

Funding growth driven by increase in AuM/Life insurance; lending growth driven by the Group's new scale and growth in CIB

1. 2021 proforma + impact expected from customer attrition

Gross NPE ratio stable at less than 4%: acceleration of de-risking thanks to bad loan & UTP disposal plan and NPE management activity

Disposal of UTP and bad loan collection platforms to a leading market player with concurrent transfer of non-performing loan portfolio

DEVELOPMENTAL GUIDELINES	KEY NUMBERS
FASTER GROUP DERISKING PROCESS	Disposal of NPE stock	~ 2.5 B€
THE TRANSACTION	RWA reduction	~ 500 M€
• Project started for disposal of UTP and bad loan collection platforms to a leading market player with concurrent sale of non Platform Disposal UTP UTP + Bad loan + UTP performing loans INVESTOR Ptf disposal Synergic	HC reduction	~ 120
management • Activation of multi-year servicing Servicing of Stock + BCM of bad loans Flows and UTPs contract	Gross NPE Ratio
CURRENT STATUS • Non-binding expressions of interest received from 4 leading players in the aim to close the deal by the end of 2022 and complete the disposal in early 2023	>1.9 pp 4.9%	<3.0%
	2021	2022 pro forma

ECONOMIC AND FINANCIAL TARGETS

Branch network downsizing by 29% and parallel development of alternative channels (digital banking, corporate banking centres, private banking centres, …)

KEY INITIATIVES

• Closure / disposal of approx. 600 branches identified as:
• o Non-performing
• o Overlapping (proximity to another branch)
• o Not located in highly attractive areas
• Extension of «lean» branch models thanks to investments for the introduction of selftechnology (e.g. Advanced ATMs, self-guided cash-in and cash-out services, Remote Teller)
• Multi-format strategy enhancement (Hub/Spoke model evolution)
• Customer relationship gradually shifting to digital banking and other specialised channels (strengthening of private / corporate banking centres in the footprint areas)

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ECONOMIC AND FINANCIAL TARGETS

The identified efficiencies will free up approx. 3,300 resources, with the pool of management skills and competencies being enriched with new recruits from the market

• New ~ 800 HC manoeuvre, with ~ 240 HC already expensed and contractualised by Carige (in addition to the manoeuvre paid for in 2021 for ~1,700 expected exits² )

• New manoeuvre one-off charges: ca. 140-150M€

Rounded off

1. BPER 2021 PF stand alone incorporates additional costs arising from alignment of the employment contracts of former UBI/ISP employees

2. Expected exit of ca. 1,700 employees including by using the Banking Industry Solidarity Fund; for more details, please see Press Release of 29/12/2021

Major increase in transformative investments and costs for Group growth and evolution (x3 prior plan)

1. Project-related charges

Target payout levels significantly higher than in the past, while preserving strong capital solidity

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Annexes

«BPER e-volution» is structured around 5 transformative pillars supported by 3 crosscutting work streams

DE-RISKING AND CREDIT CONTROL

NEW INNOVATION MODEL

ESG INFUSION

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Evolution of the business model

Evolution of the technological platform and operating model

ESG infusion

Annexes

NATIONAL SCALE MULTI-SPECIALIST

Specialised organisational model rolled out in Q4 2021, with specialised Departments and channels to support the Group's key businesses

INITIATIVES

• Evolution of the highly specialised organisational model (leveraging the newly acquired scale)
• Creation of «Insurance Strategies» and «Corporate & Investment Banking» departments
• New WM hub being finalised also by leveraging the assets acquired through the Carige transaction (Banca Cesare Ponti)

TRANSFORMATION INTO A FEE-BASED REVENUE MODEL

Over the last 5 years, Wealth Management has become an important growth engine for the BPER Group

~700M€ fees at 2021 (over 20% of the Group's total revenues and over 40% of commission income) + estimated 80M€ contributed by Carige

• Major investments by the Group to make the WM segment distinctive (Management Team, service model specialisation, opening of private banking centres, network strengthening, investment center in Optima SIM…)
• Acquisition of control of ARCA Sgr
• On-boarding of private banking customers in Northern Italy after acquisition of former UBI Banca Business Unit

• Affluent segment untapped potential of 40-45B€ in liquidity convertible into AuM+life insurance

Ambition to enhance Group WM&AM via Banca Cesare Ponti, enhanced as the Group's integrated specialised vehicle

• leveraging on Banca Cesare Ponti
• direct management of private banking customers and Group investment centre
• remuneration / incentive policy focused on business growth
• centralization of product intelligence for AuM development on all Group Customers service models

TRANSFORMATION INTO A FEE-BASED REVENUE MODEL

5 lines of growth for Group WM&AM to reach 2025 targets: approx. 100 B€ in AuM and 830 M€ in net commission income

Implementation of a bancassurance-dedicated structure and new business model

DEVELOPMENTAL GUIDELINES KEY NUMBERS

• Set up of dedicated network of ~225 HC partly hired on the market and partly reskilled for redeployment via a training plan with an external insurance partner ✓ +170
• Specialisation of the service model via enhancement of post-sales services and digitalisation of key products (non-life / health)
• Evolution of processes, targeting approaches and industrialisation of customer contacts
• Maximisation of commercial synergies with other banking products

Bancassurance sellers (#)

Non-life Bancassurance Premiums¹ (M€)

Non-Life Bancassurance commissions¹ (M€)

Strengthening of consumer credit via full centralisation of personal loan origination in Bibanca and digitalisation of the product proposition

• Full-scale centralisation of personal loan origination in Bibanca ✓

• Reinforced network of fifth-of-salary/pension backed loan agents
• Digitalisation of products and expansion of product proposition, for self-guided and remote purchase of consumer credit and e-money products
• Implementation of advanced scoring and analyticsbased underwriting models to increase consumer credit penetration among the Bank's customers
• Termination of Carige's distribution agreement with Creditis is under consideration

New CIB service model for Group Large and Mid Corporate customer growth

• Start-up of new CIB Department to intensify relationship management of currently underserved customer segments and operations ✓
• Strengthening of structured finance desk / advisory by centralising competences ✓
• Expansion of management team and targeted hiring plan (+20 professionals already hired)
• Wider CIB coverage for medium /large businesses
• Larger market share in Business Advisory, Capital Markets and Structured Finance, leveraging product cross-selling opportunities in a logic of maximisation of capital employed
• Enhancement of collaboration with product factories (e.g. BPER Factor), including in line with the objectives of the NRRP
• Renewal of digital platforms

2021 2025

Targeted actions identified to safeguard asset quality over time, focusing on the dissemination of a credit risk culture

• GROWTH-ORIENTED CREDIT POLICIES
• Upgrade credit policies, via:
• o promotion of loans to sectors consistent with risk/return targets o closer integration with commercial action of customer segments o increased sectoral specialisation and introduction of a supply chain approach o stronger ESG framework, in line with market best practice

ENHANCED CREDIT MANAGEMENT MODEL

• Review and specialisation of the Credit Department organisational structure
• Development of data driven methodologies for credit origination and management
• Streamline and digitalise origination and pre-approval processes
• Increase efficiency of processes and tools in use
• Stronger credit culture via dedicated Academies

PROACTIVE PROCESSES, OUTSOURCING AND DE-RISKING 3.

• Develop a new early management system and make proactive management of higher risk positions more efficient
• Dispose of BPER Credit Management and UTP debt collection platform with concurrent sale of non-performing loans for an amount of 2.5 B€
• Implement a multi-year servicing agreement to maximise NPE workout

1.

2.

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Evolution of the business model

Evolution of the technological platform and operating model

ESG infusion

Annexes

IT to evolve with solutions consistent with enabling the transformation of the business model

adoption of open-banking and

market solutions

Conversion of 20-25% workload from legacy to open/cloud systems

MAIN LINES OF IT TRANSFORMATION

HYBRID CLOUD INFRASTRUCTURE

Rationalisation and modernisation of the data centres, journey to cloud and advanced cybersecurity solutions to improve service reliability and performance

Cloud scalability with 15-20% carbon footprint reduction in IT

CENTRALISED, AGILE IT GOVERNANCE

Centralise Group IT Governance, new vendor management strategies and definition of specific career paths to attract and retain digital talents

IT investment capacity more than doubled

INDUSTRIALISED INTEGRATION MODEL

Industrialised IT integration model to manage activities and higher level of technological capability to support extraordinary corporate transactions

Sizeable increase in IT investments, enabled by scale-up in size, management and skills of IT staff

New technological capabilities and digital service implementation strategies will reduce time to market with tangible results as early as from halfway through the plan

NON EXHAUSTIVE

SIMPLE, DIGITAL BANK

Stronger digital proposition developed around customer needs, gradual sales increase via the digital channel

Activation of a new «innovation» model as an accelerator of the Group's transformation and growth

4 areas of intervention identified to further develop and unite BPER human capital

Hiring of ca. 1,450 specialists with skills aligned with the new needs of the Business Plan (IT, Digital, Data, WM, ESG …)

PEOPLE AT THE CENTRE

Evolving workplace models

DEVELOPMENTAL GUIDELINES

• Adoption of one design for all of the Group's HQs
• Standardised technology to support hybrid work, ensuring a functional use of office space
• Creation of a smart workplace, in line with ESG and sustainability objectives

MAIN BENEFITS

• Strengthening the BPER brand positioning and foster a sense of corporate identity and belonging in the workforce
• Improving the quality of working space and the well-being of employees with offices suitable for new ways of working (remote/agile work)
• Enhancing the value of owned properties including in view of potential disposal
• Reducing the costs and improving the efficiency of properties through consolidation (primarily in Modena and Milan)
• Reducing the environmental impact, particularly in terms of Co2e emissions

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Evolution of the business model

Evolution of the technological platform and operating model

ESG infusion

Annexes

ESG INFUSION

The Business Plan has traced the Group's line of development in ESG to create longterm shared value

PROPOSITION

ENVIRONMENTAL

EXTERNAL TRANSITION

• Driver for transition of businesses to low-carbon economy

INTERNAL TRANSITION

• Reduction in Group emissions, with targets in line with the Paris Agreement ESG

SOCIAL

SOCIAL RESPONSIBILITY

• Strong outreach to communities
• Development of education and inclusion programmes for young people
• Diversity & Inclusion at all company levels
• Dissemination of internal and external ESG culture

GOVERNANCE

SUSTAINABLE LEADERSHIP

• ESG Governance consolidation
• Incorporation of ESG targets in remuneration schemes
• Implementation of ESG criteria ensuring a «client-oriented» company approach
• Higher ESG ratings

ESG INFUSION

Results achieved and recognised by the financial community

E NVIRONMENTAL	• Carbon footprint • tracking with physical and transition risk analysis of loan book and securities portfolio*	Scenario • Analysis* of C&E1 physical and Alliance and TCFD2 transition risk completed	Participation in the • + 109% kWh Net Zero Banking generated by photovoltaic systems3 in 2021	• Calculation of science-based emission reduction targets for 2030, in line with the Paris Agreement
S OCIAL	• First social bond issuance for an amount of 0.5 B€ (March 2021)	• ESG training initiatives for employees	• Evolution of company welfare • Platform of Welfare services for Corporate customers	• D&I Policy review, with a Bank comprehensive vision (BoD, BoSA, Top management, employees, subsidiaries)	• + 128,000 young people involved in positive social impact projects in 2021
G OVERNANCE	• 47% share of women in the BoD and 67% in the Board of Statutory Auditors	• Stronger ESG governance: Board internal Sustainability Committee; managerial ESG Committee; dedicated function (reporting to the BoD)	• Implementation and incorporation of an Action Plan for C&E risk management in the operating model	• Inclusion in the MIB ESG index on the Euronext market of Borsa Italiana	• Publication of Environmental, Social and Sustainability Bond Framework	• Official signatory PRB4 of the

1. Climate & Environmental

2. Task Force on Climate-Related Financial Disclosures

3. 3 new photovoltaic plants for total 1.2 Gwp were built in 2020-21

4. Principles for Responsible Banking

(*) see Consolidated Non-Financial Statement 2021

ESG INFUSION

Concrete objectives and actions to be delivered with an ESG infusion approach to all Pillars of the strategic plan

E NVIRONMENTAL	• Risk Management Framework with climate factors	• Intensification of green lending and advisory (sectors/supply chains, NRRP, 110% superbonus, green mortgage loans1 ,)	• Rationalising the IT architecture in a sustainable perspective («Hybrid Cloud», datacenter)	• Incorporation of ESG criteria in the Company's procurement choices (MEC2 ) • Implementation of the Net Zero Banking Alliance	• Encourage agile work and life/work balance including via the rationalisation of HQ locations (new workplace)	• Reduction of Group emissions, with science based targets in line with the Paris Agreement
S OCIAL	• Increased lending to Non Profit Organisations			• Accessibility to D&I products and services	• Financial education activity by young people for young people (in collaboration with universities) • Loans of honour to university students • D&I project	• Partnership with national organisations to promote social inclusion of the weaker sections of society
G OVERNANCE	• Monitoring of the C&E risk management Action Plan (ESG Compliance Programme)			• PRB implementation • Incorporation of ESG criteria in supplier assessment	• Inclusion of ESG targets in remuneration policies	• Redesigning the internal Organisational Model to define ESG roles and responsibilities
ESG	• Upgrade of credit processes with incorporation of ESG factors • Expanding the proposition of ESG investment products	• Rating of Corporate customers through an ESG score	• Improved ESG data and indicators collection/management process for Corporate customers	• Initiatives in support of culture and promotion of art and museum heritage	• Professional upskilling and reskilling programmes on ESG issues • Increase ESG awareness of all employees	• Incorporation of ESG criteria in the credit policy • Incorporation of ESG criteria in the banking/trading book investment policy

1. Mortgage loans on buildings in class A and B or renovated to improve energy efficiency

2. Minimum Environmental Criteria (MEC), requirements for the purchasing process aimed at identifying the products /services that have a greener life cycle

Main financial targets

E NVIRONMENTAL	• Green lending (sectors/supply chains, NRRP, 110% superbonus, ) • Expanding the proposition of ESG investment products and ESG AuM1	>7 B€ ESG loans granted to businesses over Plan period* +25% # ESG products and ESG AuM stock	Group emission reduction2 • • Increasing the use of renewable energy sources3	-23% CO2 emissions in 2025* 100% Electricity from renewable sources from 2022
S OCIAL	• Sustaining activities in support of communities and local development • More financial education programmes	15 M€ +400,000 people involved over the Plan period	• Diversity & Inclusion project4 • Disseminating ESG culture via professional upskilling/reskilling programmes and ESG awareness increase	25% female managers 33% female middle managers + managers >50% employees trained in ESG; 100% employees with ESG awareness
G OVERNANCE	ESG targets in MBO5 • and LTI	15% ESG KPIs weight	Key ESG Ratings evolving to Best in class levels6 •

1. Higher number of ESG products and ESG AuM on offer

2. Science-Based Targets : 23% emission reduction by 2025 and 50% reduction by 2030 (as requested by NZBA)

3. As early as from end-2022 100% of purchased electricity will derive from renewable sources

4. Targets do not include ARCA Sgr

5. Valid for 2022

6. S&P ESG Evaluation, Moody's ESG Solutions, Standard Ethics Rating

(*) Included in the LTI plan; for key social projects, the positive impact generated will be considered

Conclusions

Clear strategic vision & size scale-up

1.	Disposal of non-core assets and capital release for the core business	-2.8 B€ in RWAs >500 M€ in capital to be used for the core business
2.	Re-focus on high-value business (CIB, Bancassurance, Wealth Management, Consumer Credit)	>30% contribution to Revenues1
3.	Technological and operational evolution	>500 M€ in IT investments Cost income <58%
4.	De-risking completion	Gross NPE Ratio ~3.6%

Major increase in profitability and payout

ROTE > 10% and Payout target ~50%

Agenda

A story of growth

A wider national outreach

Economic and financial targets

2022-2025 Business Plan pillars

Annexes

Methodological Note

GENERAL NOTES	KEY DEFINITIONS
	CARIGE 2021	Internal reclassification
	INCOME STATEMENT	Reference is made to the reclassified income statement schedule
	ROTE	Calculated as net profit / [(tangible equity for prior year + tangible equity for the year) / 2]
• Figures in the presentation may not coincide with	TANGIBLE EQUITY	Sum of valuation reserves (caption 120 + caption 125), Redeemable shares (caption 130), Reserves (caption 150), Share premium (caption 160), Share capital (caption 170) - Treasury shares (caption 180), Consolidated profit net of dividend distributed (or approved) by the parent or consolidating company (caption 200) - Intangible assets (caption 100)
totals in the tables because of roundings	OPERATING COSTS	Staff costs, administrative expenses, depreciation and amortisation
• CET1 ratio fully phased	OTHER INCOME	Dividend, trading and other operating income/expense
throughout the document, unless otherwise stated	BPER NORMALISED	Stand-alone figures, net of one-offs
	BPER 2021 PF STAND-ALONE	Stand-alone figures, net of one-offs, with annualised contribution from former UBI/ISP business unit
	BPER 2021 PF COMBINED	BPER PF stand alone + Carige contribution + impact from deconsolidation

Financial targets were determined by taking into account the new reference scenario, the impacts of Business Plan projects and planned extraordinary transactions

BPER Gruppo 2021 CARIGE Nuovo perimetro Gruppo NormalizzazioneIntegrazione perimetro out Scenario inerziale/ evoluzio ne tassi Iniziativ e a piano ILLUSTRATIVE Normalisation 2021 BPER Group normalised Annualisation of former UBI/ISP contribution Inertial scenario/ interest rate evolution BPER 2021 Carige PF standalone Deconsolidation BPER 2021 PF combined BP initiatives Carige synergies BPER 2025 A B C D E F ACTIONS RATIONALE FOR THE DEFINITION OF TARGETS G

• Normalisation of 2021 nonrecurring items («one-offs») A
• Annualisation of former UBI-ISP business unit contribution B
• Carige supplementary contribution C
• Extraordinary deconsolidation transactions (leasing, merchant acquiring, NPEs…) D
• Scenario projection with updated macro-economic context and interest rate forecasts E
• Upside from initiatives for growth set out in the Business Plan F
• Add-on from Carige transaction synergies G

Highlights of balance sheet and structure

		2021 normalised	2025
	GROSS BANKING PRODUCT	~347	~396
	TOTAL FUNDING	~268	~301
VOLUMES	o.w. DIRECT FUNDING	~101	~111
(B€)	o.w. INDIRECT FUNDING	~166	~190
	TOTAL LOANS1	~79	~95
	RWAs	~45	~61
STRUCTURE	WORKFORCE	~18,400	~19,400
(#)	BRANCHES	1,742	~1,500

The trend of Net Interest Income reflects TLTRO exit strategy

Commissions on the rise thanks to balanced contribution of Business Plan projects

Operating costs affected by inflation forecasts and project investments; important upside from HR manoeuvre and projects contribution

Sensitivity to 100bps rate increase: ~250 M€ in higher NII; balance sheet structure more sensitive on the asset side

Institutional issuance plan of approx. 6B€ over the next 4 years, in line with TLTRO phase-out; liquidity ratios broadly in excess of regulatory targets

Income Statement, Balance Sheet and KPIs

	Income statement (M€)	2021 norm.	2024	2025
	Net Interest Income	1,505	~1,920	~1,950
	Net commission income	1,642	~2,125	~2,180
	Other income	233	~245	~245
	Operating income	3,380	~4,290	~4,370
Operating costs		(2,099)	~(2,570)	~(2,530)
	Net operating income	1,281	~1,715	~1,840
	LLPs	(528)	~(635)	~(590)
	Net Operating Income after provisioning	753	~1,080	~1,250
	Profit before tax	580	~930	~1,160
	Net profit1	384	~640	~800

Balance Sheet (B€)	2021 norm.	2024	2025
Loans to customers	~79	~93	~95
Total direct funding	~101	~112	~111
Total indirect funding	~166	~187	~190

Indicators (%)	2021 norm.	2024	2025
RoTE	n.s.	~8.9%	>10%
C/I ratio	~62%	~60%	<58%
Cost of risk (bps)	67	~68	~60
Gross NPE ratio	4.9%	~3.7%	~3.6%
NPE coverage	60.4%	~47.4%	~50.9%
CET 1 ratio fully phased	13.5%	>13%	>13%
Dividend payout	~20%	~50%	~50%

1. Normalised 2021 profit assuming Tax rate of 28%, and 34M€ in minorities. Net profit at 2024 factors in 112 M€ worth of provisions for contributions to banking system funds (50 M€ at 2025)

Contacts for Investors and Financial Analysts

Fabio Pelati

Head of Investor Relations

Via Aristotele, 195 – 41126 Modena – Italy

+39 059 2021396

fabio.pelati@bper.it

Nicola Sponghi

Investor Relations

Via Aristotele, 195 – 41126 Modena – Italy

nicola.sponghi@bper.it

Alessandro Simonazzi

Head of Planning and Control

Via Aristotele, 195 – 41126 Modena – Italy

+39 059 2022014

alessandro.simonazzi@bper.it