Prospectus - Notowania

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RISK FACTORS
Since the financial statements and the interim reports of the UniCredit Group are
draw up in Euro, the Issuer carries out the necessary currency conversions in
compliance with the applicable accounting standards. In detail, the Issuer and/or
other companies in the UniCredit Group implement – with reference to the main
subsidiary companies not belonging to the Euro area – a policy for the economic
hedging of profits being generated, as well as the dividends relating to the
previous year, in this latter case with regard to the period between the end of the
financial year and the payment of said dividends. This hedging policy involves
the use of derivative exchange rate products targeted at immunizing against the
fluctuations in the Euro/local currency exchange rate.
Any negative change in the exchange rates could however have effects on the
balance sheet, income statement and/or financial situation of the UniCredit
Group.
For further information, reference should be made to the matters described in the
First Section, Chapter 9, of the Prospectus.
(c) Risks associated with financial market trends
The UniCredit Group’s results depend to a significant extent on the performance
of the financial markets. In particular, the unfavourable performance of the
financial markets influences: (i) the placement flows of the asset management
and administration products with consequent negative impacts on the levels of
placement fees received; (ii) the management fees due to the lower value of the
assets (direct effect) and due to the redemptions possibly induced by the
unsatisfactory performances (indirect effect); (iii) the operations of the markets
unit, with particular reference to the financial instrument placement and
brokerage activities; and (iv) the results of the banking portfolio and the trading
portfolio.
In conclusion, the volatility of the financial markets leads to a risk associated
with operations in the sectors of wealth management, brokerage and the other
activities remunerated via fees in the sectors in which the UniCredit Group is
active.
For further information, reference should be made to the matters described in the
First Section, Chapter 9, of the Prospectus.
4.1.2 Risks of diluting the ROE
The Capital Increase transaction could lead to a risk of dilution of the UniCredit
Group’s Return on Equity (ROE) in the periods after its execution. The UniCredit
Group’s annualized ROE as at September 30, 2009 came to 4%. The Capital Increase
will lead to an increase in shareholders’ equity which may not correspond to a
proportional rise in net profit, with a consequent decrease in ROE subsequent to
December 31, 2009.