BNP Paribas in Italy

Developing Our Second Domestic Market

Jean Clamon
Chief Operating Officer

15 June 2007

1
 Disclaimer
This presentation includes forward-looking statements based on current beliefs and expectations
about future events. Forward-looking statements include financial projections and estimates and
their underlying assumptions, statements regarding plans, objectives and expectations with respect
to future events, operations, products and services, and statements regarding future performance
and synergies. Forward-looking statements are not guarantees of future performance and are
subject to inherent risks, uncertainties and assumptions about BNP Paribas and its subsidiaries and
investments, developments of BNP Paribas and its subsidiaries, banking industry trends, future
capital expenditures and acquisitions, changes in economic conditions globally or in BNP Paribas’
principal local markets, the competitive market and regulatory factors. Those events are uncertain;
their outcome may differ from current expectations which may in turn significantly affect expected
results. Actual results may differ materially from those projected or implied in these forward-looking
statements. Any forward-looking statement contained in this presentation speaks as of the date of
this presentation: BNP Paribas undertakes no obligation to publicly revise or update any forward-
looking statements in light of new information or future events.

The information contained in this presentation as it relates to parties other than BNP Paribas or
derived from external sources has not been independently verified and no representation or warranty
expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy,
completeness or correctness of, the information or opinions contained herein. None of BNP Paribas
or its representatives shall have any liability whatsoever in negligence or otherwise for any loss
however arising from any use of this presentation or its contents or otherwise arising in connection
with this presentation or any other information or material discussed.

Please note that 2003 and 2004 figures are based on French accounting standards, while 2005,
2006 and 2007 figures are based on IFRS accounting standards.

2
 Overview

A distinctive growth model

Applied to Italy
Strong momentum
Already a success
Conclusion

3
 BNP Paribas
Accelerated Growth in 2006
Revenues
+27.9%
+14.1%

Accelerated
Accelerated growth
growth 27.9
19.2 21.9
in €bn

2004 2005 2006

Organic revenue growth

13.5%

Powerful 10.0%
Powerful organic
organic growth
growth
drive
drive

2005/2004 2006/2005

Developing
Developing aa second
second
domestic
domestic market
market

4
 BNP Paribas
A Pan-European Leader
Core business revenues
1Q07
A growth model combining:
North Rest of
America the world
12% 11% z Powerful pan European platforms
y RFS : Cetelem (#1 in continental Europe)
Western Arval & BPLG (top 3)…
Europe 77%
y AMS : Securities Services (#1 in Europe)
Private Banking (#3 in Europe)
Cortal Consors (#1 in Europe)…
y CIB : leading positions in all products
19% FRB
21% z Key retail banking expertise with FRB
AMS z Sound organic growth and disciplined
RFS 8%
& CIB BNL bc
acquisition strategy
29%
platforms
z Proven integration know-how
Europe excl. France France

AAdistinctive
distinctivegrowth
growthmodel
model
being
beingapplied
appliedto
toaasecond
seconddomestic
domesticmarket
market
5
 BNP Paribas
in Italy Before BNL

z More than € 750 mn revenues in 2005

z Over 3,700 staff

Residential
Consumer Finance* Mortgages Leasing Fleet Management Private Banking

Corporate &
Insurance Asset Management Custody & Clearing Real Estate Services Investment Banking

AAfull
fullrange
rangeofofpowerful
powerfulplatforms
platforms
with
withsignificant
significantmarket
marketpositions
positions

* 50/50 JV with Cassa di Risparmio di Firenze

6
 BNL:
A Decisive Milestone
z A nation-wide franchise
z Personnel headcount 17,000
z A significant upside potential
z Branches 895
Revenues / RWA (2005) „ Retail branches 703
6.9*
5.9 5.8 5.6 5.4 5.3 5.3 „ Private centres 18
5.1
4.2 3.8
„ Corporate and P.A.* centres 80
in %

„ Specialised subs. centres 94

.
I

sa

ta
it

VN
S

It
IM
ali
ed

MP

BN
BP
ne

p.
e
BP
olo

Int
pit
icr

Po
ve
Ca
Un

Pa

ca

z Client base

ca
2.7mn
to
n
n

n
An
Ba
Sa

Ba
Cost / income ratios (2005) „ Individuals 2.5mn
64.8 66.3
61.3
58.0
54.8 55.0 55.9 56.1 57.0 „ Private Banking 11,000
„ Small Business 112,000
„ Corporate and P.A.* 55,000
lo
a
sa
it

lia
VN

S
U
et

L
ed

ao

MP
BP
e

BN
ta
en

BP
nt
icr

nP

pi
nv
aI

Ca
Un

Sa
to
nc

An
Ba

AAunique
uniqueopportunity
opportunityin
inthe
theItalian
Italianmarket
market
* Public Administrations 7
 Acquisition of BNL:
Key Figures
Acquisition Price
Total Synergies
€ 9 bn
€ 480 mn by 2009
P/E = 16.9, P/BV = 1.8
60% financed by a
€ 5.4 bn rights issue
Restructuring Costs & Net Revenue Cost
Balance Sheet Adjustments Synergies Synergies
€ 1.2 bn € 210 mn € 270 mn

Strong
Strongvalue
valuecreation
creationpotential:
potential:
zzaccretive
accretiveby
by2008
2008
zzreturn
returnon
oninvested
investedequity
equity>>cost
costof
ofcapital
capitalfrom
from2009
2009**

* Including restructuring costs 8

 Overview
A distinctive growth model

Applied to Italy
Strong momentum
Already a success
Conclusion

9
 Ambitions for Italy

z Revitalise BNL’s strong national franchise

z Strengthen our already significant market share in

Asset Management and Retail Financial Services

z Become leader in Corporate & Investment Banking in Italy

z Improve profitability by optimising quality of service, cost

efficiency and risk management

AAnew
newkey
keyplayer
player
in
inthe
theItalian
Italianbanking
bankingmarket
market

10
 Ingredients of an
Italian Success Story in Place
z A new identity for BNL
„ New logo (since July 2006)
„ Successful advertising campaigns

z High motivation of staff

„ Transparent and dynamic
communication
„ Cutting-edge products to meet client
needs
„ Marketing campaigns

z New governance and management

style

z Quality of execution

Early
EarlyStart,
Start,Strong
StrongMomentum
Momentum
11
 Overview
A distinctive growth model

Applied to Italy

Strong momentum
Already a success
Conclusion

12
 BNP Paribas in Italy:
New Business Organisation

BNL
BNP Paribas-BNL
banca commerciale
Corporate &
Retail & Private Division
Investment Banking
Corporate Division

Asset Management
& Services Retail Financial
BNP Paribas AM, Cardif, Services
BNL Vita*
BNL Gestioni, ARVAL, BPLG-Locafit
BNL Fondi Immobiliari UCB, Findomestic**

z Alignment of management reporting and disclosure

z Streamlining of the legal structure underway

BNP
BNPParibas
Paribasin
inworking
workingorder
orderin
inItaly
Italy

* BNL Vita 50/50 JV with Unipol ** Findomestic : 50/50 JV with Cassa di Risparmio di Firenze 13
 BNL bc:
New Distribution Model
From 12 “Aree Territoriali”
to 5 “Regioni”

z Transfer to Italy of the distribution

Nord West
(Milano) model successfully adopted in
France
Nord East
(Bologna) z Critical mass reached by each
Region to achieve greater economies
Center of scale and commercial efficiency
(Firenze)

z Pilot-projects completed successfully

Lazio and
Sardinia
(Roma)
z Roll-out of the new organisation
South
(Napoli) underway

AAsimpler
simplernetwork,
network,
to
toensure
ensuremore
moreautonomy
autonomyand
andspeed
speedof
ofinitiatives
initiatives
14

Goals
z Focus on client needs
„ Innovative product offering
„ Leveraging on BNP Paribas
platforms (bancassurance,
EQD, …)
„ Increase quality of service and
customer satisfaction
z Improve marketing efficiency
„ New clients segmentation
„ Multi-channel distribution
„ Lower threshold for Private
Banking
z Renew branch concept and
layout (open 100 new branches)
Commercial
Commercialturnaround
turnaroundunderway
BNL bc:
Retail & Private
First achievements
z Success of new product
campaigns:
„ “Conto Revolution”
„ “Mutuo Revolution”,
„ “Prestito Revolution”,
„ “4WD” and “Total Return”
z Turnaround in customer
acquisition: +2,000 net new accounts
in 1Q07 (vs. -24,000 in 1Q06)
z Multi-channel distribution for small-
businesses: 1Q07 Business Way new
contracts totalling 4,300 (vs. 1,500 in
1Q06)
z AMS net inflows in 1Q07: x2.2/1Q06
thanks to the launch of Total Return
life insurance
underway
15
 BNL bc:
Corporate
Goals First achievements

z New approach to client service z 21 “Centri Affari”,

ƒ Gathering product expertise to
provide one-stop shop for corporate
customers
z Delivering leading-edge products
ƒ Structured Finance and Derivatives
ƒ Leasing, Factoring and Fleet
management
ƒ Cash-management
z Leverage on BNPP international
presence in over 90 countries
ƒ Trade-Finance
for Corporate and Local Authorities
ƒ Senior bankers appointed
ƒ Training on CIB products for
relationship managers launched
ƒ Joint-clients visits with CIB started
z Opening of Italian desks in France,
Tunisia, Turkey, Gulf Region
z Commercial achievements in 1Q07:
ƒ 670 new accounts opened
ƒ 60 structured finance mandates
signed in, of which 32 executed
ƒ Growth in trade finance fees

Leveraging
LeveragingBNL
BNLhigh
highpenetration
penetration
in
inthe
thecorporate
corporatesegment
segment
16
 CIB in Italy:
New Set-Up in Place
The integration of two players complementing each other

Over 100 front-line

professionals connected to A leading player
CIB Pan-European platforms, in the Italian
focusing on large-sized corporate lending market
transactions for mid-sized deals

472 Italian based resources (241 Front Line and 231 Support)

ƒ Securitisation: market leader since 1992

ƒ LBO: Top 3 player with more than 20% market share
ƒ Project finance: Top 3 player with 13% market share

17
 CIB in Italy:
Two Levers for Growth
Cross-sell with BNL bc
Expanded CIB customer base
(Retail & Private, Corporate)

z All large corporates (sales > z Common platform for marketing

€500mn)
z Full coverage of specialised
sectors (Energy & Commodities,
Media & Telecom, Shipping,
Aviation, Real Estate)
z All Financial sponsors
z 110 Financial Institutions
z 40 Local Authorities
Fixed-Income products
z Dedicated Fixed-Income desk
for Local Authorities
z Specialised M&A team to serve
small and mid-corporate clients
z Distribution of EQD products to
Retail & Private clients

Leading-edge
Leading-edgeCIBCIBplatform
platform
with
withaadomestic
domesticRetail
Retail&&Corporate
Corporatefranchise:
franchise:
aaunique
uniquebusiness
businessmodel
modelin
inItaly
Italy
18
 AMS in Italy:
All platforms in working order
z A significant contribution for the Group
ƒ Assets under management: €60bn
ƒ Assets under custody: €346bn

Asset Securities International

Management Insurance Real Estate Services Private Banking

NAZCA

(*)

AAunique
uniquecombination
combinationofofproduction
productionand
and
distribution
distributionplatforms
platforms
(*) BNL Vita 50/50 JV with Unipol 19
 AMS in Italy:
A Promising Market
Market Potential Response

BNL’s Individuals market share per z New and diversified asset

product management product offering
5.0% Greatest 5.0% ƒ Optimisation of mutual fund range
Greatestdevelopment
development
potential
potential 4.1% ƒ Segmentation of the offer
3.0% z New innovative life and creditor
protection insurance products
1.0%
z AMS specialists located within
each of the 29 retail areas
Average
individual
Managed
Funds
Life Life
insurance insurance
Mortgages
z In 1Q07, strong net inflows in life
client in unit-linked
penetration insurance products offset outflows
in mutual funds
Source : GFK Eurisco, Assogestioni, Assofin,
ANIA, latest data available

Increase
Increaseasset
assetgathering
gatheringmarket
marketshare
share
20
 Retail Financial Services in Italy:
Strong Brands and Leadership
Start-up Employees Ranking Market Share

Consumer
Finance* 1984 >2,000 #1 12%

Mortgages 1989 250 #3 10%

Among specialist players

Leasing
1990 460 #1 14%
On small-ticket segment **

Fleet
Management 1995 560 #1 20%

Over
Over 20
20 years
years of
of success
success in
in Italy
Italy
* 50/50 JV with Cassa di Risparmio di Firenze ** Leasing of equipment goods < €50,000

21
 Retail Financial Services in Italy:
Significant Upside
Leverage BNL’s client base
z Distribute BNP Paribas’ products through BNL’s Corporate and Revenue
Retail distribution channels Synergies
z Dedicate leasing and fleet management sales forces for BNL
Corporate and Small Business Clients

Contribute to the development of BNL’s client base Revenue

z Cross-sell BNL current accounts to UCB customers
Synergies
z Offer higher-quality services to BNL clients

Develop large-scale industrial projects

z Develop stronger integration of IRFS’ product factories and BNL Cost and
z Merge BNP Paribas Lease Group and Locafit Revenue
z Process initiated to control Findomestic Synergies

Building
Buildingon
onexperience
experienceof
ofpartnerships
partnershipsbetween
between
product
productfactories
factoriesand
andbanking
bankingnetworks
networks
22
 Overview
A distinctive growth model

Applied to Italy
Strong momentum

Already a success
Conclusion

23
 BNL bc:
1Q07 Results
Revenues Op. Expenses and Dep.

+7.8% +1.0%
638
592
408 412

in €mn in €mn

1Q06* 1Q07 1Q06* 1Q07

Pre-tax income
Incl. 2/3 of Private Banking in Italy

+49.0%
143
96

in €mn

1Q06 * 1Q07

Integration
Integrationof
ofBNL:
BNL:already
alreadyaasuccess
success
*1Q06 pro forma
24
 BNL bc:
Synergies
Total planned synergies by 2009

Impact on gross operating income

38 81 175 186

in €mn
2006 2007 2008 2009

Synergies progress report

31.03.07 31.12.09

38 27 116
in €mn

Booked in Full year effect

2006 & 1Q07 of synergies
already implemented
0 181 480
38%

38%
38%ofoftotal
totalsynergies
synergiesprojects
projects
already
alreadyimplemented
implementedas asofofMarch
March07 07
25
 Cost Efficiency Project &Initiatives
Human Efficiency
Organisation Resources Procurement
improvement

z Consolidating Group z Multi-channel

z Investment banking z 2,200 staff purchasing volumes in
activities integrated departures and 900 distribution: replicate
Italy the French approach in
under CIB hires over 3 years
Italy
z Leveraging BNPP
z Major affiliates and z Trade union
foreign branches negotiations finalised
global contracts/scale z IT: upgrading
integrated into BNP for BNL SpA „ technology information systems,
Paribas leveraging on proven
„ bank services, BNPP platforms
z Redundancies
„ professional
z Headquarter functions settled on a
voluntary base services z Real-estate: optimising
rationalised
  with the „ Information headquarter and
contribution of services international network
z Branch network “Fondo ABI” sites
organisation
simplified
z Back-office: Re-
engineering of activities
underway

70%
70%of
ofprojects
projectslaunched
launched
26
 Overview
A distinctive growth model

Applied to Italy
Strong momentum
Already a success

Conclusion

27
 Deploy a Successful Universal Bank Model
in a Promising Market
Overall customers
z France : 10 mn
z Italy : 10 mn*

Private Banking clients

z France : 100,000
z Italy : 12,500

Corporate &
Institutional clients
z France : 58,000
z Italy : 55,000

Banking Branches
z France : 2,400
z Italy : 800

Benefit
Benefitfrom
fromthe
therevenue
revenuepool
pooland
andthe
theeconomies
economiesofof
scale
scaleof
ofaa“home
“homemarket”
market”covering
covering120
120mn
mninhabitants
inhabitants
*Including Findomestic 28
 Conclusion

Early
Earlymover
moverin
inthe
theEuropean
Europeanconsolidation
consolidation

Italy:
Italy:aasignificant
significantvalue
valuecreation
creationdriver
driver

BNL
BNLIntegration:
Integration:already
alreadyaasuccess
success

29
 BNP Paribas in Italy
Developing Our Second Domestic Market

Jean Clamon
Chief Operating Officer

15 June 2007

30