Prospectus - Notowania

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RISK FACTORS
4.1.18 Risks associated with the activities of the UniCredit Group in Kazakhstan
The current financial crisis had a considerable impact on the Kazakh economy and, in
particular, on the real estate property sector which felt the effect of the sudden
downturn in prices.
Within this reference framework, the Kazakh banking system, structurally unbalanced
in the direction of property loans, underwent a general deterioration in the loan
portfolio as a consequence of which two of the leading banks in the country were
nationalized following defaults in the payments of the debts, and all the four major
banks in the country, with a mainly local shareholding structures, resorted to state aid.
During 2009, UniCredit, in order to deal with a deterioration in the loan portfolio,
which fell from €4,749 million as at December 31, 2008 to €3,744 million as at
September 30, 2009, took steps during the second quarter of the year to re-capitalize
the subsidiary ATF for a total of around KZT 18 billion (around €89 million) and
during the third quarter of 2009 registered provisions for possible loans losses totalling
€249 million.
Given the persistence of the difficult situation being experienced by the Kazakhstan
economy, it cannot be excluded that a further deterioration in the financial situation of
the customers may lead the Group to evaluate further initiatives for supporting the
loan portfolio and the balance sheet situation of the subsidiary under continuity of
activities leading to possible negative effects on the balance sheet, income statement
and/or financial situation of the UniCredit Group.
4.1.19 Risks connected to the implementation of the project relevant to the
transformation of the organisational structure of the Group.
On December 15, 2009 the Board of Directors’ Meeting of the Issuer decided to startup
a project called “Insieme per i Clienti” (Together for the Clients), aimed at
increasing client satisfaction and increase the closeness to the territories in which the
Group operates. The realisation of the project cannot be supported by a corporate
simplification through a merger with the Issuer of the primary Italian banks of the
Group.
This project aims to achieve, through the simplification of the organisational model,
important synergies and efficiencies for the Group, amongst which, a greater
specialisation of the skills, a greater simplicity and swiftness of the decisional
processes and a great focus on clientele.
Nevertheless, there is no certainty that the Issuer will decide to approve the project or
whether the same, where approved, allows for the achievement of the mentioned
benefits within the expected times.
For further information, see Chapter 6, Paragraph 6.6 of the First Section.
4.1.20 Operating risks and those relating to the management of the IT systems