Mediobanca — Management Reports 2018

Aug 1, 2018

Agenda

• 1. FY18 results – Executive summary
• 2. Group performance
• 3. Divisional results
• 4. Closing remarks

Annexes

• 1. Quarterly segmental reporting tables
• 1. Glossary

Best ever revenues, GOP and profitability MB top performer in EU for revenues growth & profitability

Best ever results fuelled by enhanced distribution and strong commercial efforts NNM totalling €5bn – TFA up 7% to €64bn New loans up 28% (to €16bn), loan book up 8% to €41bn Revenues up 10% to €2.4bn, driven by strong Consumer performance and increased WM size CoR down to 62bps, asset quality improved further GOP up 24% to over €1bn, achieving BP19 target 1Y early Net profit up 15% to €864m, CET1 ratio up to 14.2%¹ ROTE at 10%, among the highest in European landscape

2018 strategic roadmap fully achieved

WM: size and brand awareness scaled up, Group fee pool enlarged and diversified Consumer: all time-high earnings level achieved with value management approach CIB: EU positioning and K-lighter businesses enhanced, improved return HF: excess liquidity optimized, loss reduced PI: stakes reduced further

Shareholders remuneration significantly increased DPS up 27% to €0.47 with payout @ 48% Buyback programme up to 3% of share capital

Revenues up 10% to €2.4bn GOP up 24% to €1bn Net profit up 15% to €864m

3

NNM up to €5bn AUM/AUA up 24% to €37bn TFA up 7% to €64bn

NPLs/Ls : gross 5%, net 2% BadLs/Ls: gross 1%, net 0% Coverage: 57% NPLs, 73% BadLs

EPS up 14% to €0.97 DPS up 27% to €0.47 BVPS up 4% to €10.4

Last 3M – 4Q confirms Mediobanca's outstanding sustainability & ability to grow in any scenario

FY18 – Executive summary Section 1

GROWTH: no negative impact from recent market turmoil in 4Q

Loan book up 2% QoQ (to €41.2bn): corporate and retail divisions growing at the same pace

NNM up 5% QoQ (to €1.5bn) driven by Affluent division

Funding up 1% QoQ (to €48.9bn): retail deposits growing fast,

effective access to bond market: in July18 issued €715m out of €3.5bn expiring in FY18/19

CoF higher, but still lower cost of bonds expiring (July placements at @105bps vs. @160bps of bonds expiring in FY18/19)

CET1 up 30bps QoQ (to 14.2%) despite higher payout and wider spread due to negligible CET1 sensitivity to spread volatility (-8bps every +100bps in spread) - No indirect exposure through AG as the stake is almost entirely deducted

RESILIENCE: strong business performance

Net interest income confirmed at €345m (up 1% QoQ and up 4% YoY), fed by Consumer Banking

Fee income at €166m, with WM contributing more than CIB for the first time ever (43% the former, 37% the latter)

Fee income flat QoQ with RAM first 3M consolidation (~€12m)

Good trading result (€33m vs €39m in 3Q)

Costs at €302m, up 8% QoQ including 3M costs of RAM (€6m) for the first time

CoR up to 72bps (60bps) given absence of writebacks in WB, but asset quality improves further (NPLs down 1% gross, 3% net, incidence to loans down to 4,6% gross, coverage up to 57%)

One-off provisions: €10m of additional provisions to Italian resolution fund for banks' rescue of 2017, €8m of restructuring costs

Playing our 2018 Business strategic roadmap…

FY18 – Executive summary		Section 1
	Affluent & Premier: CB!	Barclays integration completed AUM growth resumed (up €1.4bn) due both to FA hirings (from 65 to 226) and wealth advisors
WEALTH MGT	Private Banking: MBPB	BE merger complete, rebranded as MBPB network empowering, AUM growing (up €0.7bn) mid caps./private double-coverage set and already effective
	Private Banking: CMB	Organic growth, strong IT investments
	Asset Management	Cairn: new CLOs launched RAM acquisition closed (up €4bn AUM) MBSGR set up (fund selection, asset allocation)
CONSUMER		Impressive performance with value-mgt. approach and strong new lending Margin resilience, CoR at historically low levels Direct distribution network enhancement
CIB	Wholesale Banking	New organization and responsibilities Higher productivity/less concentration AIRB validation (~€5bn RWA savings)
	Specialty Finance	Visibility, positioning and size empowered Figures now material for Group P&L
PI		Atlantia stake sold Seed K provided to MAAM
	Treasury & other functions	Treasury optimization, CoF reduction
HF	Leasing	Selective profitable leasing business, NPL reduction

… with increasing CSR approach …

FY18 – Executive summary Section 1

CSR: shaping the already sustainable approach to business of Mediobanca Group with competences, best practice and corporate culture…

FY17: Governance set up	FY18: first Consolidated Non Financial Statement and Targets	CSR Targets disclosure
Group Sustainability Unit Group CSR Committee Group Sustainability Policy Materiality matrix First Group sustainability reporting	Responsible investing directive approved (according to the Group Sustainability Policy) Materiality matrix updated (via a multi - stakeholder forum) Signatory to UN Global Compact First Consolidated Non-Financial Statement	To assess our commitment

… to satisfy all the stakeholders with our recognized ethical approach

SHAREHOLDERS	OUR PEOPLE	ENVIRONMENT	COMMUNITY	CUSTOMERS
Solid profitability Dividend distribution Outstanding capital ratios	4,717 employees 57% men 43% women 51,131 hours of training	6,425 CO Ton avoided 2 100% of electricity in Italy from certified renewable sources	2,5 millions community investment in 3 areas: Environment and territory Culture, research and innovation Social inclusion	Retail customers Compass – 2,268,534 CheBanca! - 807,000

…we have enlarged our GOP and Profit…

FY18 – Executive summary Section 1

MB Group FY18 risk-adjusted operating profit (€m)

• PI GOP up 24% YoY exceeding BP target (€1bn) 1Y in advance, with platform enhancement driving higher client revenues and lower loan loss provisions
• RCB RCB Benefits from acquisitions - visible in Group size, revenue potential and synergies - becoming more evident
• CIB Group PBT close to €1.1bn after gains from AFS stakes disposals (€98m) and ~€50m of "systemic costs" (contribution to Single Resolution Fund, Deposit Guarantee Scheme, etc.)

… we have enlarged our fee pool …

FY18 – Executive summary Section 1

…we are more efficient in RWA management…

FY18 – Executive summary Section 1

RWA YoY trend (€bn)

FY18: RWAs down 10% to €47bn (already below BP target of €49bn) driven by optimization in CIB (down €5bn due to adoption of the AIRB model for the corporate portfolio) and lower AG RWAs (due to higher capital deductions) offsetting business growth (up >€1bn)

…stronger in capital creation…

FY18 – Executive summary Section 1

• CET1 up to 14.2% due to strong earnings generation (up 80bps after dividend) and benefits from AIRB adoption (up 140bps) offsetting business growth (-40bps), RAM acquisitions (-30bps) and AG stake deductions (due to concentration limit)
• CET1 and TC ratios steadily growing due exclusively to organic capital generation
• FY18 ratios without Danish Compromise: CET1 @ 13.1%; Total Capital @ 17.3%

…stronger in shareholders' remuneration…

FY18 – Executive summary						Section 1
€	FY14	FY15	FY16	FY17	FY18	D 18/17
EPS	0.54	0.68	0.69	0.85	0.97	+14%
DPS	0.15	0.25	0.27	0.37	0.47	+27%
BVPS	9.0	9.9	9.9	10.0	10.4	+4%
Group net profit	465m	590m	605m	750m	864m	+15%
Shares number	861m	867m	871m	881m	887m	+1%
Total dividend paid	127m	213m	231m	320m	413m	+29%
Retained earnings	338m	377m	374m	430m	451m	+5%
Stated payout	27%	36%	38%	43%	48%	+4pp
Price¹ €	6.1	8.9	5.7	8.8	8.2	-7%
Yield	2.5%	2.8%	4.7%	4.0%	5.7%	-

…with room for capital management: 3% buyback

FY18 – Executive summary Section 1

BUYBACK DETAILS

• The Board of Directors of Mediobanca adopted a resolution to propose authorizing a share buyback and subsequent disposal of treasury shares to the approval of shareholders in the annual general meeting to be held on 27 October 2018
• The purposes of the buyback are
• to build up a "war chest" of securities to be used for possible M&A transactions and for future and existing sharebased compensation schemes
• to provide investors with management view of the intrinsic value of MB stock
• The proposal involves the acquisition, in one or more tranches, of up to 3% of the company's share capital – maximum limit given by CRR - for an amount equivalent as at today's date of up to 26,611,288 Mediobanca shares
• The buyback scheme shall have a maximum duration of 18 months, starting from the date on which the European Central Bank releases the required authorization
• The minimum purchase price for the shares may not be lower than the stock's nominal value, i.e. €0.50, while the maximum purchase price may not be more than 5% higher than the reference price recorded for the shares in the stock market session prior to completion of each individual purchase.

Mb well positioned in EU for revenue Growth…

FY18 – Executive summary Section 1

In last 3Y MB top performer in Europe for revenue growth¹ (3Y CAGR: +6%), both in …

…capitalization and profitability

FY18 – Executive summary Section 1

14

MB best in class for profitability (ROTE¹ at 10%) and capital ratio (CET1>14%) allowing satisfactory shareholders remuneration (dividend yield 6%).

Capital strength to foster growth - organic and via M&A – and shareholder remuneration

MB capital generation stably high due to organic creation, absence of impact from regulation, advanced model validation

Redeployment of capital ongoing: since 2016 100bps in M&A, additional expected in FY19 and beyond

Well on track on BP19 trajectory

FY18 – Executive summary Section 1

16

1) ROAC adjusted: based on average allocated K = 9% RWAs. RWAs are calculated with STD, apart from CIB corporate portfolio calculated with AIRB in FY18. Gains/losses from AFS disposals, impairments and positive/negative one-off items excluded, normalized tax rate = 33% , 25% for PB

Agenda

• 1. FY18 results – Executive summary
• 2. Group performance
• 3. Divisional results
• 4. Closing remarks

Annexes

• 1. Quarterly segmental reporting tables
• 1. Glossary

Steady growth by earnings-generating assets …

• New loan production up 28% to €16bn, all segments contributing soundly
• Loan book up 8% to €41bn, with retail now at 55% of total loan book
• WM up 7% to €10.4bn, mainly due to mortgage growth (up 8% to €8.1bn) driven by new business
• Consumer business above €12bn (up 7%), preserving margins and profitability
• CIB: up 11% with WB up 9% to €14bn and Specialty Finance up 30% (to €2.1bn)
• TFA up €4bn (up 7% YoY) to €64bn, driven by strong NNM (roughly €5bn). Mix enhanced with 58% of TFA related to AUM/AUA (50% last year), partly due to acquisitions (€4bn AUM from RAM), offsetting reduction in less profitable segment (AUC down almost €5bn)

…with ALM optimized, retail funding enlarged, CoF reduced

16.5 13.3

FY17 FY18 Net treasury assets

FY18 – Group performance Section 2

Treasury trend (€bn)

LCR 245% 186%

Funding trend (€bn) Average stock CoF (bps vs Euribor 3M)

Treasury optimized (down from €16.5bn to €13.3bn)

• Group funding stable at €49bn with increasing wealth deposits (up €1.3bn to over €19bn) at lower CoF (60bps)
• Group avg. CoF reduced to 90bps in FY18, with both corporate and retail CoF reducing (to 145bps and 60bps respectively)
• CoF of bonds expiring still above the current avg issuance costs (€715m bond placed at 105bps in J18)

Bond issues & redemptions (€bn, CoF bps vs Euribor3M)

… ensured fifth consecutive year of growth

FY18 – Group performance Section 2

Group revenues trend and details (€m)

• FY18 highest-ever top line: €2.4bn
• Fee and net interest income continuing to grow, now at €2bn (last 5Y CAGR: +7% )
• Top-line increase achieved through effective diversification

NII up 6% (fifth year of growth in a row)

FY18 – Group performance Section 2

Group net interest income (€m) Consumer NII trend (€m, 6m)

Holding Function NII trend (€m, 6m)

• NII up 6% driven again by Consumer Banking growth (up 6%), Specialty Finance (up 54%) and WM (up 5%)
• Holding Function NII loss halved driven by ALM optimization: loan book up 8%, treasury down 19% (from €16.5bn to €13.3bn) with funding almost stable (loans/funding ratio up from 78% to 84%)

Fees scaling up in size & sustainability driven by WM & CIB

FY18 – Group performance Section 2

22

Group Fees by business CIB fees by quarter (€m, 3m) ¹ (12M, €m)

WM fees by quarter (€m, 3m)

• Growth: fee up 19% YoY to €622m (up €100m YoY)
• Higher quality and sustainability: 40% of fee income now from WM (mainly management fees), 40% from CIB
• CIB: average quarterly fees up due to higher productivity and diversification (SF, DCM and CF offsetting ECM)
• WM: scaling up for organic growth and M&A: 4Q18 fees at the highest (up 15% to €73m)

Cost base up mainly due to enlarged consolidation area

FY18 – Group performance Section 2

Costs by divisions (€m, pro-forma for acquisitions)

MB Group cost base (€m)

• FY18 costs at €1,1bn, up 9% but almost stable on like-for like basis, still including investments in IT/infrastructure upgrade and regulation
• Cost base up due to business expansion (especially in WM, SF and Consumer) partially offset by savings achieved in WM (total WM costs stable)

CoR deflated, coverage ratios up

FY18 – Group performance Section 2

Cost of risk by division (bps)

NPLs ("deteriorate", €m) and coverage (%)

• Group cost of risk down to 62 bps, the lowest level in the last 12Y, well below BP estimates (105 bps at June 19)
• Consumer (below 200bps in FY18 and 195 bps in 4Q) and CIB (-12bps in FY18) at their lowest-ever levels
• Gross NPLs down 6% to €1.9bn (with incidence of loans from 5.2% to 4.6%), coverage ratio up to 57%

Superior asset quality improved further

NPLs Bad Loans

Agenda

• 1. FY18 results – Executive summary
• 2. Group performance
• 3. Divisional results
• 4. Closing remarks

Annexes

• 1. Quarterly segmental reporting tables
• 1. Glossary

profitability enhanced in all divisions

FY18 – Divisional results Section 3

27

1) ROAC adjusted: based on average allocated K = 9% RWAs. RWAs are calculated with STD, apart from CIB corporate portfolio calculated with AIRB in FY18. Gains/losses from AFS disposals, impairments and positive/negative one-off items excluded, normalized tax rate = 33% , 25% for PB

Wealth Management

Wealth Management (WM)

Affluent & Premier

CheBanca!

Private & HNWI

MB PB

CMB, Spafid

Mediobanca AM MB SGR, CMG Cairn, RAM

BP 16/19 mission: prioritize the development of a sizeable WM Platform investing capital organically and through M&A

FY18 – Divisional results Section 3

	Affluent & Premier	Private & HNWI	Asset management
	CheBanca!: EXPLOIT OPTION VALUE	A DEFINITIVELY DIFFERENT OFFERING	SET UP A SPECIALIZED GROUP AM FACTORY
S E V TI C E J B O	Innovative offering Significant earnings growth (g) with low volatility Visible at MB Group level: obtain scale, also through M&A	Italy: build up Mediobanca Private Banking brand/offering Principality of Monaco: leverage CMB Extract synergies with CIB & AM	Leverage on MB brand & skills Serve retail/ institutional MB Group sales network Increase AUM and WM return
S N O TI C A	Confirm digital leadership Execute Barclays integration, exploit synergies Build a wealth sales force	MBPB: integrate and rebrand Esperia, introduce and leverage dual IB-PB coverage CMB: local consolidator, more closely integrated into MB AM platform	Upgrade existing factories Invest in new capabilities/asset classes Attract talent and managers

WM: growth delivered in all business metrics

AUM/AUA Deposits AUC

Enhanced omni-channel distribution…

• Digital platform and CRM continuously empowered
• Wealth advisors up 20% to 541, driven by CheBanca! enhancement (up 94) and MBPB reshuffle
• Financial advisors more than tripled to 226, FA shops doubled to 46
• Rationalization in WM staff, lowered in number (to 1,888, down 9% , RAM 41 employees excl.), front component increased
• Rationalization in branches: CheBanca! down by 20% to current 111, PB flat at 15

…fostered €5bn in high-quality NNM both Affluent and Private customer segments up both AUM/Deposits materially increased

FY18 - Divisional results Section 3

Group TFAs NNM by customer segment (€bn)

Private&HNWI&AM Affuent & Premiere

• €4.7bn NNM driven by both Affluent/Private segments
• CheBanca!: €2.2bn, 60% due to FAs network and 40% to proprietary sale force enhancement
• MBPB: €1.6bn, due to rebranding, synergies with IB and hiring of bankers. Last Q NNM impacted by the closure of some institutional mandates at MB SGR
• MAAM: new CLOs launched by Cairn (~€1bn)

Group TFAs NNM by product (€bn)

AUM/AUA Deposits AUC

NNM well diversified between AUM and deposits

• AUA/AUM: €3.3bn
• Deposits: €1.4bn

AUM/AUA up 25% to >€37bn

FY18 - Divisional results Section 3

Group AUM/AUA trend (€bn)

• AUM/AUA development continuing fuelled by organic growth (€3.2bn in last 12M, up 11%) and M&A (€4bn RAM)
• Growth concentrated in managed assets, now 58% of TFAs (50% as at June17, 41% as at June16)
• All segments growing: Affluent & Premier (CheBanca!) up €1.4bn Private & HNWI & AM up almost €2bn

Revenues & GOP scaling up with sustainable mix

FY18 - Divisional results Section 3

WM revenues by customer segment (12M, €m)

WM revenues by source (12M, €m)

WM GOP by customer segment (12M, €m)

Fast growing income (up 15% YoY to €526m), well diversified

• by customer segment: 45% Affluent (€234m) & 55% Private (€293m)
• by income sources: 50% NII (€255m) & 50% fees (€260m)
• Fee income: 80% recurrent (banking and management fees)

• Fair pricing

• GOP becoming material (up 47% to €93m), driven by revenues growth

• GOP well diversified
• 45% Affluent (€41m)
• 55% Private (€52m)

WM: €64bn TFA, >€500m revenues, 13% ROAC

• WM: increasingly visible and valuable
• €526m in revenues, 21% of MB Group
• €259m in fees, 40% of MB Group
• €64bn of TFAs, €10bn of loans
• €69m net profit
• ROAC 13%
• Strong organic growth coupled with M&A (RAM acquired in March18, €4,1bn AUM)

Growth driven by the reshaped distribution model: €2.5bn NNM, €1.6bn related to HNWI and €0.9bn to MAAM TFAs up 5% to €41.3bn €33.7bn ~ HNWI €7.6bn ~ MAAM Revenues up 26% to €234m, GOP up 16% to €52m Net profit up 48% to €42m ROAC up at 20% CheBanca!: growth resumed €2.2bn NNM, evenly split between proprietary network (€0.9bn) and FAs (€1.3bn) TFAs up 10% to €22.6bn Mortgages up 8% to €8.1bn Solid progression in profitability Revenues up 7% to €293m GOP doubled to €41m Net profit at €28m double FY17 adj. (€15m positive one-off) ROAC up to 8% Affluent & Premier CheBanca! CheBanca! (Affluent & Premier) MBPB – MBSGR – MAAM Private banking – AM – MAAM FY18 – Divisional results Section 3

WM - €m June17 June18 D Revenues 460 526 +15% GOP risk adj. 63 93 +47% Net profit 55 69 +26% TFA bn 59.9 63.9 +7% Loans bn 9.7 10.4 +7% RWA bn 5.8 5.8 -1% ROAC 10% 13% +3pp

Affluent - €m	June17	June18	D
Revenues	275	293	+7%
GOP risk adj.	18	41	+2x
Net profit	27	28	+3%
TFA bn	20.4	22.6	+10%
Mortgages bn	7.5	8.1	+8%
RWA bn	3.5	3.7	+6%
ROAC	5%	8%	+3pp

Private B. - €m	June17	June18	D
Revenues	185	234	+26%
GOP risk adj.	45	52	+16%
Net profit	28	42	+48%
TFA bn	39.4	41.3	+5%
Loans bn	2.2	2.3	+4%
RWA bn	2.3	2.0	-11%
ROAC	18%	20%	+2pp

Consumer Banking

Consumer Banking (CB)

Consumer Banking Compass

Consumer BP 16/19 mission - Keep growing leveraging on strengths and market opportunities

FY18 – Divisional results Section 3

S E V TI	S N O	IMPROVE PROFITABILITY	CONSOLIDATE POSITIONING	EXPLOIT NEW OPPORTUNITIES
C E J B O	TI C A	Value management the sole guide	Delivery empower distribution	Innovation in product and channels

In FY18 Compass has achieved record revenues (€1bn), net profit (€315m) and ROAC (30%)

driven by strong new loan production, unique integrated distribution,

superior credit scoring/pricing capabilities

Always one of the top three Italian operators

New business through all distribution channels

FY18 – Divisional results Section 3

Distribution, the key driver for growth, further enhanced with

• Larger direct distribution: 17 branches opened in last 24m (of which n.7 light), effective and profitable
• Several distribution agreements renewal
• Digital platform
• New business growing (up 6% YoY to €7.0bn) and rebalancing in line with Business Plan guidelines
• More personal loans sold through direct channel to increase the hold-back value of each loan
• Preserve bank channel (stable at €1.4bn of new business per year)
• Strong performance of Point of sale key for the future repeat business

Record revenues (€1bn), net profit (€315m) , ROAC (30%) achieved

FY18 – Divisional results Section 3

New loans reverted to high single-digit stock growth... … fostering revenues growth …

New loans - €bn Stock - €bn €m

… and substantial CoR reduction…

… driving net profit and ROAC to new highs

In last 10Y impressive results delivered over the whole cycle through organic growth and M&A

In the last 10Y, Compass's loan book tripled… … as did its revenues …

… while accurate risk assessment shrunk CoR… …with net profit up 10x to record levels

€m, bps €m, %

^{322 379 592 605 638 687 713 713} 800 ^{873 936 996} J07 J08 J09 J10 J11 J12 J13 J14 J15 J16 J17 J18

Corporate & Investment Banking

Corporate & Investment Banking (CIB)

Corporate & Investment Banking

Specialty Finance

CIB BP 2016/19 mission - Increase profitability leveraging on strengths and market opportunities

FY18 – Divisional results Section 3

	Wholesale Banking	Factoring	Credit Management
	IMPROVE PROFITABILITY FURTHER	BECOME A TOP 10 OPERATOR	LEVERAGE LONG-STANDING SKILLS
S E V TI C E J B O	Strengthen MB positioning in Italy- Southern EU Exploit market opportunities Reduce RWA density	From ancillary to valuable business, increasing in size Seize new opportunities (clients/distribution/M&A)	Exploit long wave of ITA NPLs Enhance effectiveness Grow business with M&A
S N O TI C A	Empower client coverage Strengthen MidCap platform, including through closer integration with SF-PB Group companies RWA optimization/AIRB adoption	Enlarge distribution (third parties, banks) Enlarge customer base (Mid-PA) Full integration with MB lending product offering	Enter corporate/ secured mkt Optimize collection practices Keep discipline and selective growth in NPLs acquisition

Revenues resilient due to stronger M&A and Specialty Finance

FY18 - Divisional results Section 3

CIB revenues YoY trend (€m, 12M)

12M revenues resilient at over €630m, with:

• Steady contribution of IB business (M&A and Capmkt) which represents ~40% of CIB revenues (~€250m): in the last 12M DCM, CMS and Advisory activities have increased, offsetting the reduction in ECM. MidCap segment to become soon a visible revenue generator
• Steady contribution of financing activity which represents ~55% of CIB revenues: in last 12M Specialty finance growth offset large corporate NII reduction, due to margin pressure and higher-rating new business
• Positive but low contribution from Prop Trading business which represents ~5% CIB revenues

Leading Position in M&A …

FY18 – Divisional results Section 3

• Involved in all industry-shaping deals of 2017-18, including F2i and Mediaset tender offer for EI Towers, the acquisition of Abertis by Atlantia, the reorganization of Enel LatAm, Prysmian's acquisition of General Cable, the strategic partnership between ISP and Intrum and the MPS restructuring plan and loan disposal, GOP acquisition of NTV
• Strong ties with all other IB departments guarantee a complete product offering to the customer

Largest M&A Transactions since July 2017

M&A CF Italy – Announced deals (July 2017 – June 2018)

M&A FIG Italy– Announced deals (July 2017 – June 2018)

Source: Thomson Reuters as of 18 July 2017

… Equity capital markets and cash equity

FY18 – Divisional results Section 3

• Mediobanca boasts an unrivalled track record in Italian ECM transactions, managing virtually all the largest deals as Global Co-ordinator
• Growing leadership in Southern European markets, as the secondranking bank by market share in the last financial year
• Cash equity: Mediobanca Securities (MBS) the best equity brokerage house in Italy confirmed for the fourth year in a row (Extel Survey*)

45

Bookrunner Italy ECM (exclud. convertibles)

(July17 - June18)

Bookrunner Southern Europe¹ ECM (exclud. convertibles) (July17 - June18)

* Extel Survey: includes the participation of over 19,000 investors from 3,300 investment houses

Specialty Finance: intense activity supporting growth

FY18 - Divisional results Section 3

• MBFacta: one of the top ten players in Italy (eighth as at March 2018). Loan book up 23% YoY (from €1.5 to €1.8bn). In FY18 revenues up 22% to €43m (almost entirely due to NII)
• MBCredit Solutions: significant presence on the market in the past 12m. Net loan book up 2x (from €135m to €289m) after €1.5bn GBV portfolios acquired (reaching a total amount above €4bn). In FY18 revenues up 40% to €72m (60% fees, 40% NII)

CIB: ROAC up to 14%

FY18 – Divisional results Section 3

Corporate & Investment Banking (CIB)

Net profit up 4% to €264m

• Revenues almost stable with product diversification offsetting NII weakness
• Negative CoR due to writebacks
• RWAs down 16% on corporate portfolio AIRB validation

ROAC up to 14%

CIB - €m	June17	June18	D
Revenues	636	631	-1%
ow Fees	250	254	+2%
GOP risk adj.	381	393	+3%
Net profit	254	264	+4%
RWA bn	23	20	-16%
CoR bps	5	-12	-17
ROAC	11%	14%	+3pp

Wholesale Banking (WB)

Fee-driven business RWA optimized

• K-light: strong fee contributor (35% of total Group fees)
• Asset-driven business: excellent asset quality but lending impacted by lower spreads
• RWA optimization: down ~€5.1bn due to AIRB benefits, market risk optimized in previous Q
• ROAC up to 13%

WB - €m	June17	June18	D
Revenues	550	516	-6%
ow Fees	207	207	-
GOP risk adj.	353	347	-1%
Net profit	232	233	-
RWA bn	22	17	-19%
CoR bps	-11	-33	-22
ROAC	11%	13%	+2pp

Specialty Finance (SF)

Becoming visible Diversified revenue mix

• Revenue up 33%, now representing 18% of CIB income
• Revenue mix diversified
• NII up 54% driven by factoring and credit management
• Fees up 11% driven by credit management
• ROAC at 18%

SF - €m	June17	June18	D
Revenues	86	115	+33%
ow Fees & oth.inc.	42	47	+11%
GOP risk adj.	28	46	+62%
Net profit	22	31	+42%
RWA bn	1.6	2.1	+34%
CoR bps	182	136	-46
ROAC	16%	18%	+2pp

Principal Investing

Principal Investing (PI)

Principal Investing Ass. Generali AFS stake ptf

BP16-19 Mission in Principal Investing Continue deleveraging

FY18 – Divisional results Section 3

S E V	S N	Continue disposals	Optimize capital	Value management
TI C E J B O	O TI C A	€1.3bn BV disposals - AG stake from 13% to 10% - €0.6bn AFS stake disposals	RWA reduction from €7bn to €2bn	Halve contribution to Group GOP (to 20%) ROAC > CoE despite regulations

Disposals continued in FY18 (€250m) with €90m gains In last 2Y €0.6bn AFS equity sold, 2019 target already reached ROAC reduced as expected due to higher deductions (AG)

Deleveraging ongoing – ROAC 15%

FY18 – Divisional results Section 3

KPIs (€m)

PI - €m	June17	June18	D
Revenues	273	295	+8%
Gain from disposals/ impairments	162	96	-40%
Net profit	422	374	-11%
BV bn	3.7	4.0	+7%
NAV bn	3.6	3.7	+2%
RWA bn	7.7	6.3	-191%
ROAC	17	15	-2pp

Main equity investments as at June 2018 (€m)

Company	%	Book value €m	AFS reserve
Ass.Generali	13.0%	3,171	n.m.1
Italmobiliare	6.1%	61	37
RCS MediaGroup	6.6%	37	15
Seed capital		334	7
Private equity		71	23
Other listed equities		141	(1)
Other unlisted equities		142	11
Total		3,957	92

• Revenues stably high with higher dividend on AFS shares (up 31%) and higher AG contribution (up 6%)
• FY18 equity disposals: 1.4% of Atlantia (€250m BV with €89m gains in 1Q18).
• ROAC at 15% (from 17%) due to higher deductions related to Ass.Generali stake (higher BV, Concentration limit)

Holding Functions

Holding Functions

Group ALM & Treasury

Leasing

BP16-19 Mission in Holding Functions Continue optimizing

FY18 – Divisional results Section 3

S E V	S N	Treasury ALM	Leasing	Central costs
TI C E J B O	O TI C A	Reduce K absorbed Improve NII	Ordered deleverage Support MidCaps platform	Reduce special project costs Synergies on acquisitions

The Holding Functions were created to support the Group's growth path more efficiently In FY18 we have reduced loss, become more efficient in liquidity and RWA management, and kept costs under control

Loss reduced, cost under control

FY18 – Divisional results Section 3

Loss trend (€m) Cost trend (€m)

• Loss reduced by ~€100m (PBT from -€342m to -€239m) due to NII improvement, cost control and lower systemic charges (from €103m to €49m)
• Subdued cost increase (up 4%, up 2% like for like excluding the transfer of former B.Esperia central functions¹):
• Costs related to business (leasing and treasury functions), representing ~1/3 of total, flat with staff flat (leasing at 142, Treasury at 32)
• Central costs² up 8%, up 4% like for like¹ - with staff decreasing by 5% to 565² - due to increasing costs for regulation and tecnological development
  • 1) Ex Esperia staff (62 as at June 18)

2) Central costs include/refer to: Board of Directors, Senior Management, Audit, Legal, HR, Organization, Risk Management, Corporate Affairs, Investors Relation, Communication, Sustainability, Compliance, Planning, Accounting and Reporting, Technology and Operations, R&S (Ricerche e Studi)

Holding Function: ALM optimized, Loss reduced

FY18 – Divisional results Section 3

HF - €m	June17	June18	D	ALM-Treasury CF €m	June17	June18	D	Leasing - €m	June17	June18	D
Revenues	(57)	(9)	nm	Revenues	(104)	(57)	nm	Revenues	48	48	-
GOP risk adj.	(235)	(190)	nm	GOP risk adj.	(245)	(204)	nm	GOP risk adj.	11	14	+36%
Net profit	(242)	(159)	nm	Net profit	(230)	(163)	nm	Net profit adj.1	3	5	+60%
Loans (€bn)	2.3	2.1	-7%					Loans (€bn)	2.3	2.1	-7%
RWA (€bn)	4.3	4.0	-7%	RWA (€bn)	2.3	2.1	-6%	RWA (€bn)	2.1	1.9	-9%

Agenda

• 1. FY18 results – Executive summary
• 2. Group performance
• 3. Divisional results
• 4. Closing remarks

Annexes

• 1. Quarterly segmental reporting tables
• 1. Glossary

Ready to cope with a more volatile macro scenario leveraging on a contained Group risk profile

Closing remarks – What's next Section 4

Low and diversified bond exposure

• MB has a low exposure to Italian Govies in banking book: €2.7bn, corresponding to ~40% of CET1 vs ~90% average of Italian banks. Duration 2.6Y
• No "indirect" exposure through Ass.Generali
• AG proprietary exposure almost fully hedged through CET1 deduction mechanism
• Domestic govies exposure largely in customer products

Strong asset quality

• NPLs/Ls at 4.6% gross and 2.1% net, decreasing over time (5.7% & 2.7% in FY16)
• Texas ratio 13%

56

• CoR FY18 down to ~62bps due to writeback in CIB and lowest-ever lever in Consumer Banking
• CoR expected to stay low also in 2019 as
• new loan business concentrated in "quality" segments
• consumer CoR marginally up

Effective funding structure and high liquidity

• Effective MB Group funding structure, diversified by channels, customers and instruments
• LCR ratio at a comfortable 186% level
• High free eligible assets (over €10bn) representing more than two years bond maturities (€3bn/4bn per year)
• MB bonds: cost of new issues still expected lower than historical cost (@160bps) of €3.5bn bonds expiring in FY18/19

High capital generation

• High capital generation in the past: CET1 FY18 at 14.2%¹ increasing 200bps over past 2Y (12.1% at June16)
• Future capital generation expected to stay high as
• no regulatory impact on CET1 ahead
• RWA savings expected from AIRB validation on mortgages
• AG disposal offsetting Danish Compromise ending as from Jan19

Playing our 2019 strategic roadmap…

June16	June 17	June 18 June 19
WEALTH MGT
Affluent & Premier: CB!	Barclays integration completed AUM growth resumed (up €1.4bn) due both to FA hirings (160 up to 226) and proprietary advisors	Growing up in size and ROAC leveraging distinctive DNA: the human-digital bank, with a genuine omni-channel approach, for the current/next wealth generation
Private Banking: MBPB	BE merger completed, rebranded as MBPB network empowering, AUM growing (up €0.8bn) mid caps./private double-coverage instituted	Improve profitability, leverage new product offering, customer clustering Selective banker hirings, M&A scouting
Private Banking: CMB	Organic growth, strong IT investments	Organic growth/possible local consolidator
Asset Management	Cairn: new CLOs launched RAM acquisition closed (AUM up €4bn) MBSGR set up (fund selection, asset allocation)	Empower/top up distribution Exploit synergies within MB Group M&A scouting
CONSUMER	Impressive performance via value-mgt. approach Margin resilience, CoR at its lows Direct distribution network enhanced	Consolidate all-time high profitability Further enhance proprietary distribution M&A scouting ongoing
CIB
Wholesale Banking	New organization and responsibilities Higher productivity/less concentration AIRB validation (~€5bn RWA savings)	Develop pipeline in k-light products Selective balance sheet use in lending/CMS Selective hirings/increase cross-selling within PB
Specialty Finance	Visibility, positioning and size empowered Figures now material for Group P&L	Further growth and capabilities empowerment Enhance further positioning, including via M&A
PI	Atlantia stake sold, seed K provided to MAAM	~3pp AG stake disposal
HF	Treasury optimization, CoF reduction Selective profitable leasing business, NPL reduction	Cautious asset allocation and ALM optimization ongoing Diversification of sources of funding (ABS, covered, SNP)

… we'll deliver further revenue growth & higher shareholders' remuneration

Closing remarks – what's next Section 4

In FY18 fees up 19%, growing for the fifth year in a row Fee income 5Y CAGR (2013-18): +9% Fee income expected to grow also in 2019 driven by WM development Reshuffle expected to move forward, with WM up to 48- 50% of total fee income Fee income growth In FY18 NII up 6%, growing for the sixth year in a row NII 6Y CAGR (2012-2018): +6% NII expected to grow in 2019 as well, despite low sensitivity to interest rates and IFRS9 impact (expected in -€10m) driven by: lower but sustainable growth in Consumer lending WM growth benefiting from volume development HF/SF further improvement NII growth Commitment to AG partial disposal confirmed Technicalities under review to maximize value for MB shareholders ROAC of AG investment to stay double-digit (above CoE) despite full deduction (Danish Compromise ending as from Jan19) Awareness of opportunities to create value by redeploying capital from a profitable but financial investment to an industrial, k-light, fee-driven business AG stake disposal Shareholder remuneration increased through ordinary pay-out: from 38% to 43% in 2017, to 48% in 2018 through buyback: up to 3% of share capital in 18m Further capital to be allocated to M&A in 2019 and beyond Capital management

Quarterly segmental reporting tables

Annex 1

Group P&L account

FY18 results – Quarterly segmental reporting tables Annex 1

€m FY18 FY17 ^D YoY¹ 2Q June18 1Q Mar18 4Q Dec17 3Q Sept17 2Q June17 Total income 2,419 2,196 +10% 619 630 572 598 539 Net interest income 1,359 1,288 +6% 345 342 340 332 333 Fee income 622 523 +19% 166 165 153 138 121 Net treasury income 157 121 +30% 33 39 47 39 16 Equity accounted co. 280 264 +6% 75 84 32 90 70 Total costs (1,115) (1,024) +9% (302) (280) (278) (256) (301) Labour costs (558) (516) +8% (149) (138) (141) (130) (152) Administrative expenses (557) (508) +10% (153) (142) (137) (126) (148) Loan loss provisions (247) (317) -22% (74) (60) (59) (55) (69) Operating profit 1,057 855 +24% 244 290 235 288 169 Impairments, disposals 97 161 -40% 1 2 6 88 25 Non recurring (SRF contribution) (58) (102) -43% (20) (28) (5) (5) (46) PBT 1,096 914 +20% 225 264 236 371 149 Income Taxes & min. (232) (164) +42% (43) (58) (60) (70) (12) Net result 864 750 +15% 182 206 175 301 136 Cost/income ratio (%) 46 47 -1pp 49 44 49 43 56 Cost of risk (bps) 62 87 -25bps 72 60 60 57 73 ROTE (%) 10 9 +1pp

Group A&L

FY18 results – Quarterly segmental reporting tables Annex 1

€bn	June18	Mar18	Dec17	Sept17	June17	D QoQ1	D YoY1
Funding	48.9	48.3	47.4	48.5	49.1	+1%
Bonds	19.2	19.7	18.8	20.2	19.3	-3%	-1%
Direct deposits (retail&PB)	19.1	18.1	18.2	17.8	17.8	+6%	+7%
ECB	4.3	4.3	4.3	4.3	5.9	-0%	-26%
Others	6.3	6.2	6.1	6.2	6.1	+2%	+2%
Loans to customers	41.1	40.2	39.6	38.7	38.2	+2%	+8%
Wholesale	14.0	13.8	13.4	13.3	12.8	+2%	+9%
Specialty Finance	2.1	1.9	2.0	1.6	1.6	+12%	+30%
Consumer	12.5	12.3	12.1	11.9	11.8	+2%	+7%
Mortgage	8.1	7.9	7.7	7.6	7.5	+3%	+8%
Private banking	2.3	2.2	2.2	2.2	2.2	+3%	+4%
Leasing	2.1	2.1	2.2	2.2	2.3	-1%	-7%
Treasury+AFS+HTM+LR	13.3	13.8	13.2	15.3	16.5	-3%	-19%
RWAs	47.4	47.3	52.1	52.8	52.7	+0%	-10%
Loans/Funding ratio	84%	83%	84%	80%	78%
CET1 ratio (%)	14.2	13.9	12.9	13.3	13.3
TC ratio (%)	18.1	17.3	16.2	16.7	16.9

CIB results

FY18 results – Quarterly segmental reporting tables Annex 1

€m FY18 FY17 ^D YoY¹ 2Q June18 1Q Mar18 4Q Dec17 3Q Sept17 2Q June17 Total income 631 636 -1% 150 164 164 153 129 Net interest income 266 293 -9% 66 64 67 69 70 Fee income 254 250 +2% 63 75 63 53 51 Net treasury income 111 93 +18% 20 26 34 31 7 Total costs (256) (247) +3% (70) (64) (64) (57) (70) Loan loss provisions 18 (8) (8) 4 6 16 (2) GOP risk adjusted 393 381 +3% 71 104 107 111 57 Other (1) (3) (2) 0 0 1 (1) Income taxes (128) (124) (21) (35) (35) (37) (20) Net result 265 254 +4% 49 70 72 75 36 Cost/income ratio (%) 41 39 +2pp 47 39 39 38 54 LLPs/Ls (bps) -12 5 -17bps 21 -11 -17 -42 4 Loans (€bn) 16.1 14.5 +11% 16.1 15.7 15.5 14.9 14.5 RWAs (€bn) 19.5 23.1 -16% 19.5 20.0 24.9 23.6 23.1 ROAC (%) 14 11 +3pp

WB results

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	516	550	-6%	119	136	133	127	107
Net interest income	199	249	-20%	47	46	52	54	59
Fee income	207	207		53	65	48	42	40
Net treasury income	111	94	+18%	20	26	34	31	7
Total costs	(212)	(212)		(58)	(53)	(53)	(49)	(59)
Loan loss provisions	44	15		(0)	8	15	22	4
GOP risk adjusted	348	353	-1%	61	91	95	100	51
Other	(1)	(3)		(2)	0	0	1	(1)
Income taxes	(113)	(117)		(17)	(30)	(32)	(34)	(18)
Net result	234	232		42	61	64	67	32
Cost/income ratio (%)	41	39	+2pp	48	39	40	38	56
LLPs/Ls (bps)	-33	-11	-22bps	1	-22	-44	-67	-12
Loans (€bn)	14.0	12.8	+9%	14.0	13.8	13.4	13.3	12.8
RWAs (€bn)	17.4	21.5	-19%	17.4	18.1	22.8	21.9	21.5
ROAC (%)	13	11	+2pp

Specialty Finance results

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	115	86	+33%	30	28	31	26	22
Net interest income	68	44	+54%	20	18	15	15	11
Fee income and other income	47	42	+11%	11	10	15	11	11
Total costs	(44)	(36)	+23%	(12)	(12)	(11)	(9)	(11)
Loan loss provisions	(26)	(23)	+12%	(8)	(3)	(8)	(6)	(5)
GOP risk adjusted	46	28	+62%	10	13	11	11	6
Income taxes	(15)	(6)	+131%	(3)	(4)	(4)	(4)	(2)
Net result	31	22	+42%	7	9	8	7	4
Cost/income ratio (%)	38	41	-3pp	41	41	36	34	49
LLPs/Ls (bps)	136	182	-46bps	154	67	183	156	151
Loans (€bn)	2.1	1.6	+30%	2.1	1.9	2.0	1.6	1.6
of which factoring (€bn)	1.9	1.5	+23%	1.9	1.6	1.8	1.5	1.5
of which NPLs (€bn)	0.3	0.1	2X	0.3	0.3	0.3	0.1	0.1
RWAs (€bn)	2.1	1.6	+34%	2.1	2.0	2.0	1.6	1.6
ROAC (%)	18	16	+2pp

Consumer banking: Compass results

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	996	936	+6%	252	251	247	246	222
Net interest income	869	818	+6%	218	218	218	214	205
Fee income	127	118	+8%	34	32	29	32	17
Total costs	(285)	(280)	+2%	(75)	(72)	(73)	(65)	(73)
Loan provisions	(242)	(276)	-12%	(61)	(60)	(59)	(63)	(58)
GOP risk adjusted	470	380	+24%	117	119	116	119	90
Profit before taxes	463	380	+22%	110	119	116	119	90
Income taxes	(148)	(122)	+21%	(35)	(38)	(36)	(39)	(30)
Net result	315	258	+22%	76	80	79	80	60
Cost/income ratio (%)	29	30	-1pp	30	29	29	26	33
LLPs/Ls (bps)	199	243	-44bps	195	196	196	213	201
New loans (€bn)	7.0	6.6	+6%	1.9	1.8	1.7	1.6	1.8
Loans (€bn)	12.5	11.8	+7%	12.5	12.3	12.1	11.9	11.8
RWAs (€bn)	11.8	11.8		11.8	11.8	11.7	11.8	11.8
ROAC (%)	30	25	+5pp

Wealth Management results

FY18 results – Quarterly segmental reporting tables Annex 1

€m FY18 FY17 ^D YoY¹ 2Q June18 1Q Mar18 4Q Dec17 3Q Sept17 2Q June17 Total income 526 460 +14% 142 129 133 122 128 Net interest income 255 244 +5% 66 63 63 64 66 Fee income 259 203 +27% 73 64 66 56 60 Net treasury income 12 12 -2% 3 2 5 3 3 Total costs (415) (376) +10% (110) (105) (104) (97) (111) Loan provisions (16) (20) -18% (4) (4) (4) (5) (5) GOP risk adjusted 94 63 +49% 28 20 25 21 12 Other 1 4 -62% (1) 1 0 0 8 Income taxes & min. (25) (12) (8) (6) (5) (6) (31) Net result 71 55 +29% 19 15 21 16 0 Cost/income ratio (%) 79 82 -3pp 77 82 78 79 87 LLPs/Ls (bps) 16 25 -9bps 15 16 15 20 21 Loans (€bn) 10.4 9.7 +7% 10.4 10.1 9.9 9.7 9.7 TFA (€bn) 63.9 59.9 +7% 64.1 62.9 58.4 57.2 59.9 of which AUM/AUA (€bn) 37,3 30,0 +24% 37,3 36,5 31,5 30,3 30,0 of which AUC (€bn) 7,6 12,1 -37% 7,6 8,3 8,9 9,1 12,1 of which deposits (€bn) 19,0 17,8 +7% 19,0 18,1 18,0 17,8 17,8 RWA (€bn) 5.8 5.8 -1% 5.8 5.8 5.7 5.9 5.8 ROAC (%) 13 10 +3pp

CheBanca! Results (Affluent & Premiere)

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	293	275	+7%	76	73	74	70	73
Net interest income	212	205	+3%	53	52	53	54	55
Fee income	80	69	+16%	23	20	21	16	19
Total costs	(235)	(237)	-1%	(62)	(59)	(58)	(57)	(65)
Labour costs	(103)	(102)	+1%	(28)	(26)	(24)	(25)	(27)
Administrative expenses	(133)	(136)	-2%	(34)	(34)	(34)	(31)	(38)
Loan provisions	(17)	(19)	-15%	(4)	(4)	(4)	(5)	(5)
GOP risk adjusted	41	18	2X	10	9	12	9	4
Other	0	15		0	0	0	0	(6)
Income Taxes	(13)	(7)		(5)	(3)	(2)	(3)	5
Net result	28	27	+3%	6	6	10	6	4
Cost/income ratio	80	86	-6pp	81	82	79	81	88
LLPs/Ls (bps)	21	31	-10bps	22	19	20	24	26
TFA (€bn)	22.6	20.4	+10%	22.6	21.2	20.6	20.3	20.4
of which AUM/AUA (€bn)	8.4	7.1	+19%	8.4	7.9	7.6	7.2	7.1
of which deposits (€bn)	14.1	13.4	+6%	14.1	13.3	13.1	13.2	13.4
Loans (€bn)	8.1	7.5	+8%	8.1	7.9	7.7	7.6	7.5
RWAs (€bn)	3.7	3.5	+6%	3.7	3.8	3.7	3.5	3.5
ROAC (%)	8	5	+3pp

Private Banking results

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	234	185	+26%	65	56	59	53	55
Net interest income	43	39	+11%	12	11	10	10	11
Fee income	179	134	+33%	51	44	45	40	41
Net treasury income	11	12	-5%	3	2	4	2	3
Total costs	(182)	(139)	+30%	(49)	(46)	(46)	(40)	(46)
GOP risk adjusted	54	45	+19%	18	10	13	12	8
Other	1	(12)		(1)	1	0	0	(14)
Income taxes & minorities	(12)	(5)		(4)	(3)	(3)	(3)	3
Net result	43	28	+53%	14	9	11	10	(3)
Cost/income ratio (%)	78	75	+2pp	76	82	77	77	85
TFA (€bn)	41,3	39,4	+5%	41,3	41,6	37,8	36,8	39,4
CMB	10,0	9,8	+2%	10,0	10,0	10,1	9,8	9,8
MBPB	19,1	18,8	+2%	19,1	19,2	19,2	19,0	18,8
Cairn Capital	3,5	6,5	-45%	3,5	3,4	3,3	2,9	6,5
RAM	4,1	0,0		4,1	4,2	0,0	0,0	0,0
Spafid	4,5	4,4	+3%	4,5	4,8	5,2	5,1	4,4
ROAC (%)	21	18	+3pp

Principal Investing results

FY18 results – Quarterly segmental reporting tables Annex 1

€m	FY18	FY17	D YoY1	2Q June18	1Q Mar18	4Q Dec17	3Q Sept17	2Q June17
Total income	295	273	+8%	78	93	33	91	77
Gains from disposals	96	162	-40%	2	0	5	89	23
Impairments	(2)	(1)		(1)	(0)	(0)	(0)	0
Net result	374	422	-11%	79	90	35	171	102
Book value (€bn)	4.0	3.7	+7%	4.0	3.8	3.6	3.5	3.7
Ass. Generali (13%)	3.2	3.0	+6%	3.2	3.3	3.1	3.1	3.0
AFS stakes	0.7	0.7	+13%	0.7	0.5	0.4	0.4	0.7
Market value (€bn)	3.7	3.6	+2%	3.7	3.7	3.6	3.6	3.6
Ass. Generali	2.9	2.9		2.9	3.2	3.1	3.2	2.9
RWA (€bn)	6.3	7.7	-19%	6.3	5.9	6.0	7.3	7.7
ROAC (%)	15	17	-2pp

Holding Functions results

FY18 results – Quarterly segmental reporting tables Annex 1

€m FY18 FY17 ^D YoY¹ 2Q June18 1Q Mar18 4Q Dec17 3Q Sept17 2Q June17 Total income (9) (57) -84% 3 (1) (3) (8) (10) Net interest income (38) (76) -51% (7) (6) (9) (16) (11) Net treasury income 13 3 6 3 3 2 (3) Fee income 16 17 -6% 4 3 3 6 4 Total costs (173) (166) +4% (49) (44) (40) (41) (52) Loan provisions (8) (12) -38% (2) (1) (3) (2) (3) GOP risk adjusted (190) (235) -19% (48) (45) (45) (52) (65) Other (incl. SRF/DGS contribution¹) (49) (107) -54% (11) (27) (5) (6) (24) Income taxes & minorities 80 100 -20% 20 22 18 20 26 Net result (159) (242) -34% (38) (51) (32) (39) (63) LLPs/Ls (bps) 33 50 -17bps 30 15 46 43 50 Banking book (€bn) 6.5 7.6 -15% 6.5 6.5 6.5 6.8 7.6 New loans (€bn) 0.4 0.4 +3% 0.1 0.1 0.1 0.1 0.1 Loans (€bn) 2.1 2.3 -7% 2.1 2.1 2.2 2.2 2.3 RWA 4.0 4.3 -7% 4.0 3.9 3.9 4.3 4.3

Glossary

Annex 3

GLOSSARY

	MEDIOBANCA BUSINESS SEGMENT		PROFIT & LOSS (P&L) and BALANCE SHEET
CIB	Corporate and investment banking	GOP	Gross operating profit
WB	Wholesale banking	Leverage ratio	CET1 / Total Assets (FINREP definition)
SF	Specialty finance	Ls	Loans
CB	Consumer banking	LLPs	Loan loss provisions
WM	Wealth management	M&A	Merger and acquisitions
PI	Principal investing	NAV	Net asset value
AG	Assicurazioni Generali	NII	Net Interest income
HF	Holding functions	NP	Net profit
		NPLs	Group NPLS net of NPLs purchased by MBCS
	PROFIT & LOSS (P&L) and BALANCE SHEET	PBT	Profit before taxes
AIRB	Advanced Internal Rating-Based	ROAC adj.	on allocated capital1 Adjusted return
AFS	Available for sale	ROTE adj.	Adjusted return on tangible equity2
ALM	Asset and liabilities management	RWA	Risk weighted asset
AUA	Asset under administration	SRF	Single resolution fund
AUC	Asset under custody	TC	Total capital
AUM	Asset under management	Texas ratio	NPLs/CET1
BVPS	Book value per share	TFA	assets3 Total financial
C/I	Cost /Income
CET1	Common Tier Equity 1	Notes
CoF	Cost of funding	1) Adjusted return	on allocated capital: average allocated K = 9%
CoE	Cost of equity	RWAs (for PI: 9% from AFS	RWA + capital deducted from CET1). Gains/losses disposals, impairments and positive/negative one-off
CoR	Cost of risk	items excluded,	normalized tax rate = 33%. For Private Banking
DGS	Deposit guarantee scheme	normalized tax	rate = 25%
DPS	Dividend per share	2) Return on tangible	equity: net profit excluding non-recurring items /
EPS	Earning per share	Shareholders equity – goodwill
FAs	Financial Advisors	3) AUA + AUC +	AUM + direct deposits

Disclaimer

This presentation contains certain forward-looking statements, estimates and targets with respect to the operating results, financial condition and business of the Mediobanca Banking Group. Such statements and information, although based upon Mediobanca's best knowledge at present, are certainly subject to unforeseen risk and change. Future results or business performance could differ materially from those expressed or implied by such forward-looking statements and forecasts. The statements have been based upon a reference scenario drawing on economic forecasts and assumptions, including the regulatory environment.

Declaration by Head of Company Financial Reporting

As required by Article 154-bis, paragraph 2 of Italian Legislative Decree 58/98, the undersigned hereby declares that the stated accounting information contained in this report conforms to the documents, account ledgers and book entries of the company.

Head of Company Financial Reporting

Emanuele Flappini

Investor contacts

Mediobanca Group Investor Relations

Piazzetta Cuccia 1, 20121 Milan, Italy

Jessica Spina	Tel. no. (0039) 02-8829.860
Luisa Demaria	Tel. no. (0039) 02-8829.647
Matteo Carotta	Tel. no. (0039) 02-8829.290

Email: investor.relations@mediobanca.com

http://www.mediobanca.com