ITALY

Please see important disclosures at the end of this document www.cheuvreux.com

10 July 2008

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BANKS CHANGE OF RECOMMENDATION

Intesa-Sanpaolo

Rating 3 to 2/Outperform

Target price (6 months) +17.2% EUR4.3 (4.7)

Price (09/07/2008) EUR3.67

Reuters: ISP.MI Bloomberg: ISP IM

All in all, a safe play – Rating upgrade

Low risk, high visibility on earnings; rating upgradeIntesa-SPI's visibility on earnings is one of the highest among Italian banks, with the least risk exposure. It also boasts an ABS portfolio worth EUR6bn (50% of Unicredito's exposure), limited exposure to conduits, modest exposure to leveraged finance and sound asset quality. As a result, we are upgrading the stock to 2/Outperform with a new target price of EUR4.3.

Moving to cautious assumptions We are fine-tuning our forecasts (down 1% in 2008E, down 3-4% p.a. in 2009E-2010E) to factor in the impact of: 1) overdraft fees; 2) a further slowdown in asset management volumes; 3) lower trading income; and 4) the "Robin Hood" tax.

Sound liquidity position Liquidity is firmly under control. In Q1-08, ISP reduced its interbank exposure from EUR8bn (2% of total funding) to EUR2.5bn (0.6% of total). In Q1-08, its loan/deposit ratio was 0.92x (vs. 0.94x on average). Bonds account for 42% of its total funding (vs. avg. 44%).

Weaker capital base, but room for flexibility In a static scenario, implying no disposals and acquisitions, ISP's core tier 1 is expected at 5.9% at end-2008, well below 2007, in line with domestic peers. However, ISP has several options to increase its capital base by selling: 1) Banca Fideuram; 2) Findomestic; 3) Neos Banca; 4) CROrvieto; and 5) further branches. Fideuram is set to be sold or listed, when market conditions permit, while Findomestic might be sold, but not before the legal dispute with BNP Paribas over the 50% stake is resolved. The disposals could finance small acquisitions.

Upgraded from 3/Underperform to 2/Outperform ISP is trading at 9.2x P/E 08E, an 11% premium to EU peers, and at an attractive 1.1x PTBV 08E. Even in a distressed scenario, implying EUR2.5bn of net adjustments to the TBV (EUR0.84/share impact to the TP), we do not see significant downside. At a core tier 1 of 5.4%, no rights issue would be required.

Carlo TOMMASELLI Research Analyst ctommaselli@cheuvreux.com (39) 02 8062 83 44

Stock data

Market capitalisation EUR46 947mFree Float EUR27 370mEnterprise value EUR46 946mNo. of shares, adjusted 12 781.6mDaily volume EUR230.42m

Performances 1 month 3 months 12 months

Absolute perf. -5.8% -22.8% -32.7% Relative perf. 3.8% -11.7% -3.1%

1.3

2.3

3.3

4.3

5.3

6.3

01/01 12/01 11/02 11/03 10/04 09/05 08/06 07/07 07/081.3

2.3

3.3

4.3

5.3

6.3

Price/MIB30 Price

Next event

Q2-08 results due on 28 August

Sector focus

Sector Top Picks BNP Paribas, DNB NOR, Julius

Baer, National Bank, Nordea, Santander

Least favoured Banca MPS, Banco Sabadell

Shareholders Compagnia di SanPaolo (7.7%), Carlo Tassara (5.9%), Credit Agricole (5.5%), Free Float (58.3%)

To 31/12 (EUR) 2007 2008E 2009E 2010E

Revenues (m) 18008 19307 20149 21061 Cost/Income ratio (%)

51.5 48.8 45.4 43.5

Bad debt charge (%) 0.51 0.43 0.45 0.46

Op. profit (m) 6858 8267 9198 9996

Net attrib. profit (m) 7250 5627 5875 6556

Net dividend 0.4 0.3 0.3 0.4

Payout ratio (%) 67.0 68.2 73.5 72.1

2007 2008E 2009E 2010E

Clean EPS 0.41 0.40 0.48 0.53

P/E (x) 13.2 9.2 7.6 7.0

Tangible BVPS 3.07 3.21 3.33 3.47

P/TBVPS (x) 1.8 1.1 1.1 1.1

Core ROE (%) 19.6 13.4 13.4 14.3

Core tier 1 ratio (%) 6.2 5.9 6.1 6.3

Yield (%) 7.0 8.2 9.2 10.1

Company profile

Market leader in northern Italy Intesa-SPI (ISP) is the largest Italian banking franchise, with 6,566 branches in Italy, >20% domestic market share (23% in Lombardy) and 1,308 branches abroad. In Q1-08, 69.1% of its total income was generated by the commercial network (Banca dei Territori), 10.7% by the international banking division, 10.6% by corporate and investment banking, 5.4% by asset management, 1.4% by public finance and 2.8% by other activities.

Founded via merger of Banca Intesa-San Paolo Imi in 2007 Intesa-SPI was founded on 1 January 2007, after the merger of Banca Intesa (BIN) and San Paolo Imi (SPI), which was acquired for a price of EUR28bn, or 2.4x PTBV, with total goodwill of EUR14bn. SPI brought 3,183 branches, extensive coverage in Lombardy and Piedmont, and significant market share in wealth management.

Focus on cost-cutting Intesa-SPI is aiming for EUR1.8bn of synergies in 2009, or ~19% of its combined cost base vs. 13% on average for other recent deals (announced). It expects EUR565m of revenue synergies and EUR1.2bn of cost synergies (both above average). Despite deep cost-cutting, there is still scope for further cost reduction at ISP: on top of the EUR730m 2008E cost synergies, ISP might add EUR200m in cost savings.

Sound asset quality, core tier 1 below 6% (after dividends) In Q1-08, Intesa-SPI reported a 0.9% net NPL ratio vs. the sector average of 1.28%. Its coverage of doubtful loans stood at 71%, with a >EUR2.3bn generic reserve for performing loans (0.6%). Under Basel I, the core tier 1 was 6% at end-March, in line with the sector average of 6%. In a static scenario, without any disposals, acquisitions or IMMIT listing, we expect the core tier 1 (Basel I) to reach 5.9% at end-2008 after the EUR3.7bn of ordinary dividends to be paid in 2009.

SWOT analysis

Strengths Weaknesses Solid market share in northern

Italy (23%)

Robust EPS growth (16% CAGR 07-09 vs. 10% for EU peers)

Low net interbank exposure (0.2% of total funding)

Capital shortage (5.9% core tier 1 expected at end 2008)

Heavy exposure to equity investments

56% of net fees are tied to the asset management business

Opportunities Threats

De-risking of balance sheet after the consumer credit business is deconsolidated

Many assets available for sale (Banca Fideuram, Findomestic, Neos, CROrvieto, branches)

CEO's track record in managing situations of stretched capital in market turmoil

EUR482m of unrealised losses due to Telco exposure (equity accounted)

Acquisition risk

Sharp outflows from the asset management business

Some overhang due to potential sale of Crédit Agricole’s stake and Mr.Zaleski's margin call

Valuation For Intesa-SPI, we used a sum of the parts (SOP), based on a divisional model, which points to a target price of EUR4.3 per share.

We started from the 2008 sustainable divisional profitability, which, compared to the cost of equity and long-term growth, yields the "right" PBV.

Including the EUR2.1bn capital deficit, which was calculated based on the 6.5% core tier 1 threshold, the EUR3.8bn ordinary and saving dividends, minus the EUR3.1bn negative impact from the corporate centre, we end up with a fair value of EUR54.8bn, or EUR4.3 per share.

Intesa-SPI is trading at a P/E of 9.2x for 2008E, i.e. at an 11% premium to European peers, with 16% EPS CAGR in 2007-09E vs. an average of 10.4%. ISP is trading at an attractive 1.1x PTBV for 2008E and at a 13% discount to European peers, with a superior net yield of ~8% in 2008E vs. the European average of 6%.

Investment case Intesa-SPI is a growth story, with 16% core EPS CAGR 2007-09 that exceeds European peers (at 10%), but in our view, displays: 1) manageable risky exposure on the balance sheet; and 2) limited earnings downgrade risk. The bank features the following risks: 1) stretched capital ratio expected at end 2008 (5.9%, Basel I); and 2) acquisition risk. Nevertheless, the CEO's track record in market turmoil is relevant: he took over the bank in 2002 when the core tier 1 was at 5.2% and restored the capital situation to sound levels in two years thanks to a programme of massive disposals (LatAm and other international subsidiaries – EUR23bn of RWA) and to a sharp downsizing of the large corporate exposure (EUR31bn in RWA). Mr Passera should be able to finance the external growth with disposals of several assets: Banca Fideuram, Findomestic, Neos, which are likely to take some time due to market conditions and other restrictions (the legal dispute on Findomestic). In the short term, ISP might sell CROrvieto (42 branches, EUR47m in equity) and 20 branches. One target is rumoured to be Unibanca, in north-east Italy, 127 branches, EUR360m in net equity. However, any external move is set to be consistent with the dividend policy, with foundations being the main shareholders of the bank, with a 23.34% total stake.

10 July 2008 ITALY Intesa-Sanpaolo

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Summary Sound balance sheet, high earnings visibility: we move to 2/Outperform In the current market turmoil, Intesa-SPI’s visibility on earnings is among the highest in Italy, with the least risk exposure. It also boasts an ABS portfolio worth just EUR6bn (50% of Unicredito's exposure), limited exposure to conduits, modest exposure to leveraged finance and sound asset quality. For this reason, while we are slightly reducing our estimates and target price (to EUR4.3), we upgrade our rating to 2/Outperform.

Asset quality under control; capital ratios under pressure… In Q1-08, Intesa-SPI reported a 0.9% net NPL ratio vs. the sector average of 1.28%. Its coverage of doubtful loans stood at 71%, with a >EUR2.3bn generic reserve for performing loans (0.6%). Under Basel I, the core tier 1 was 6% at end-March in line with sector average. In a static scenario, without any disposals, acquisitions or IMMIT listing, we expect the core tier 1 (Basel I) to reach 5.9% at end-2008 after the EUR3.7bn of ordinary dividends to be paid in 2009.

…but several options to raise capital In a static scenario, implying no disposals and acquisitions, ISP's core tier 1 is expected to be 5.9% at end-2008 (Basel I), well below 2007, in line with domestic peers. However, ISP has several options to increase its capital base by disposing of: 1) Banca Fideuram; 2) Findomestic; 3) Neos Banca; 4) CROrvieto; and 5) further branches. Fideuram is likely to be sold or listed, when market conditions permit, while Findomestic might be sold, but not before the legal dispute with BNP Paribas over the 50% stake is resolved. The disposals could finance small acquisitions.

A look back at the 2003-2005 plan: Mr Passera is the real asset We cannot forget Mr Passera’s track record in: 1) selling assets at full price; and 2) in downsizing RWA. In the plan for 2003-2005, Mr Passera downsized RWA by EUR54bn, including EUR23bn in RWA disposals (LatAm and international subsidiaries), thus restoring the core tier 1 from 5.2% to sound levels.

EPS 2008-10E cut 3%, DPS 2009-10E cut 3%: new TP EUR4.3 We are moving to a positive rating and fine-tuning our forecasts (down 1% in 2008E, down 3-4% p.a. in 2009E-2010E) to factor in the impact of: 1) overdraft fees; 2) a further slowdown in asset management volumes; 3) lower trading income; and 4) the "Robin Hood" tax. We are also trimming by 3% on average the DPS to be paid in 2010 and 2011. ISP is trading at a P/E of 9.2x for 2008E, i.e. at an 11% premium to EU peers, and at an attractive 1.1x PTBV for 2008E. Even in a distressed scenario, implying EUR2.5bn of net adjustments to the TBV (EUR0.84/share impact to the TP), the stock is cheap at 1.1x PTBV. At a core tier 1 of 5.4%, no rights issue would be required.

INTESA-SPI: PEER COMPARISON

(x, %) P/E PTBV ROE Yield

08E 09E 10E 08E 09E 10E 08E 09E 10E 08E 09E 10E

Unicredito 8.05 6.92 6.03 1.32 1.22 1.13 17.10 17.60 17.10 7.06 7.60 8.69Intesa-SPI 9.22 7.61 6.95 1.12 1.08 1.05 13.40 13.44 14.30 8.17 9.20 10.07Banca MPS 9.88 8.33 7.03 1.33 1.28 1.22 12.98 14.91 16.78 7.34 8.47 10.16UBI Banca 9.55 8.07 7.05 1.17 1.12 1.06 12.26 13.86 15.06 6.63 7.63 8.62Banco Popolare 8.30 6.92 6.34 1.22 1.12 1.24 14.68 16.23 19.54 5.78 7.34 8.26BPM 8.63 7.28 6.81 0.74 0.69 0.67 8.53 9.96 10.12 5.91 6.87 7.34Credem 8.57 7.93 7.32 1.05 0.97 0.89 11.97 11.97 12.02 4.72 5.10 5.52Average, Italy 8.89 7.58 6.79 1.12 1.06 1.02 12.70 13.95 14.91 6.51 7.46 8.38Average, Europe 8.30 6.40 6.00 1.27 1.17 1.07 18.10 20.00 21.50 6.10 7.30 8.00

Source: Cheuvreux

10 July 2008 ITALY Intesa-Sanpaolo

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3

CONTENTS

Summary 3

I— Valuation 5 Sum of the parts 5

II— Distressed scenario 6 III— New estimates 7

Trimming EPS08-10E by 2.8% on average 7

Environmental. Social. Governance Issues 8

CHEUVREUX'S BANKS TEAM

Joachim Müller (coord.) Germany (49)-69-47 89 79 60 ( Direct ) jmueller@cheuvreux.com

Rodney Alfvén Nordic (46)-8-723 51 72 ( Direct ) ralfven@cheuvreux.com

Jean-baptiste Bellon France (33)-1-41 89 75 78 ( Direct ) jbellon@cheuvreux.com

Christoph Blieffert Germany (49)-69-47 897 541 ( Direct ) cblieffert@cheuvreux.com

Alexandros Boulougouris France (30)-210-745 4353 ( Direct ) aboulougouris@cheuvreux.com

Alain Chirlias France (33)-1-41 89 76 11 ( Direct ) achirlias@cheuvreux.com

Fredrik Gutenbrant Nordic (46)-8-723 51 73 ( Direct ) fgutenbrant@cheuvreux.com

Jan Kees Mons Benelux (31)-20-573 06 30 ( Direct ) jmons@cheuvreux.com

Francisco Riquel Spain (34)-91-432 75 50 ( Direct ) friquel@cheuvreux.com

Christian Stark Switzerland (41)-44-218 17 02 ( Direct ) cstark@cheuvreux.com

Carlo Tommaselli Italy (39)-02-80 62 83 44 ( Direct ) ctommaselli@cheuvreux.com

10 July 2008 ITALY Intesa-Sanpaolo

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I— Valuation Based on our new sum-of-the-parts model, we reduce our target price for Intesa-Sanpaolo (ISP) to EUR4.3 (from EUR4.7), implying 16% upside. We trimmed our EPS08-10E by 3% on average and trimmed our estimates of DPS to be paid in 2010 and 2011 by 3% on average.

Sum of the parts We based our the sum-of-the-parts on the various divisions of the bank: Retail Banking (Banca dei Territori, its retail bank network), Corporate & Investment Banking (Banca IMI, Merchant Banking, the Large Corporate International Trade Service, Factoring), Public Finance (BIIS), Intesa-Sanpaolo's international banks (in Albania, Serbia, Slovenia, Croatia, the Czech Republic, Hungary, Romania, the Ukraine and Egypt) and the Asset Management divisions (Eurizon and Banca Fideuram). We started from the 2008 sustainable RORAC, which, compared to the cost of equity and long term growth, yields the "right" PBV for each division, according to the Warrant Equity Valuation. Including the Corporate Centre, valued at the average resulting PE applied to the loss of the unit, the capital deficit to the 6.5% core tier 1 ratio and the dividend to be paid next year, we end up with a new target price of EUR4.3 (vs. EUR4.7 previously), due to a EUR1.5bn increase in the capital deficit (due to the completion of CRFI and the Pravex deals) combined with a profitability slowdown at the domestic business.

INTESA-SPI: 2008 SOP

(EUR m, EUR, x, %) Sustainable Rorac COE PBV PE Value Per share (%)

Retail banking 17% 10.0% 1.9x 8.7x 29 276 2.29 53%

CIB 16% 10.6% 1.6x 10.7x 16 644 1.30 30%

Public Finance 9% 9.7% 0.9x 10.2x 1 377 0.11 3%

International network 22% 10.6% 2.5x 10.6x 6 549 0.51 12%

Banking business 16% 10.2% 1.8x 9.5x 53 848 4.21 98%

Eurizon 40% 10.5% 4.5x 6.7x 2 354 0.18 4%

Total core operations 22% 10.4% 1.9x 9.3x 56 201 4.40 103%

Corporate Centre (3 115) (0.24) -6%

Excess/Deficit capital (-2106) (0.16) -4%

Dividend 3 834 0.30 7%

Total 54 814 4.29 100% Source: Cheuvreux

Intesa-SPI is trading at 9.2x, an 11% premium to European peers on PE08E, with an EPS07-09E CAGR of 16% vs. 8% for European peers. Intesa-SPI trades at 1.1x PTBV08E or at an attractive 13% discount to European peers: its appeal is reinforced by the fact than it risks fewer additional write-downs and impairments on the balance sheet than peers.

INTESA-SPI: PEER COMPARISON

(x, %) PE PTBV ROE Yield

08E 09E 10E 08E 09E 10E 08E 09E 10E 08E 09E 10E

Unicredito 8.05 6.92 6.03 1.32 1.22 1.13 17.10 17.60 17.10 7.06 7.60 8.69Intesa-SPI 9.22 7.61 6.95 1.12 1.08 1.05 13.40 13.44 14.30 8.17 9.20 10.07Banca MPS 9.88 8.33 7.03 1.33 1.28 1.22 12.98 14.91 16.78 7.34 8.47 10.16UBI Banca 9.55 8.07 7.05 1.17 1.12 1.06 12.26 13.86 15.06 6.63 7.63 8.62Banco Popolare 8.30 6.92 6.34 1.22 1.12 1.24 14.68 16.23 19.54 5.78 7.34 8.26BPM 8.63 7.28 6.81 0.74 0.69 0.67 8.53 9.96 10.12 5.91 6.87 7.34Credem 8.57 7.93 7.32 1.05 0.97 0.89 11.97 11.97 12.02 4.72 5.10 5.52Italy 8.89 7.58 6.79 1.12 1.06 1.02 12.70 13.95 14.91 6.51 7.46 8.38Europe 8.30 6.40 6.00 1.27 1.17 1.07 18.10 20.00 21.50 6.10 7.30 8.00

Source: Cheuvreux

New target price: EUR4.3

10 July 2008 ITALY Intesa-Sanpaolo

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II— Distressed scenario We ran a sensitivity analysis on Intesa-SPI and Unicredito to gauge the impact in a distressed scenario of a massive write-down/impairment on the EPS, BVPS, TBVPS, core tier 1 and/or a capital shortage.

Our "scenario 1" is based on a pre-tax impairment of 19% of the total outstanding risk exposure: the ABS and LBO portfolios, conduits and net doubtful loans. While for UCG, the pre-tax impairment would amount to >EUR7bn, for ISP it would be EUR3.6bn. "Scenario 2" is based on a pre-tax impairment of 30% of the total outstanding risk exposure of the two banks.

UNICREDITO: IMPACT ON 2008 DATA INTESA-SPI: IMPACT ON 2008 DATA

(EUR, %) Scenario 1 Scenario 2

Pre-tax impairment 7 150 11 450

Post-tax impairment 5 005 8 015

Net impairment/share 0.38 0.60

Impact on EPS -82.2% -131.6%

Impact on BVPS -3.8% -8.0%

Impact on TBVPS -6.4% -13.5%

Impact on DPS -82.2% -100.0%

Capital shortage (5 299) (8 309)Core tier 1 5.0% 4.5%

(EUR, %) Scenario 1 Scenario 2

Pre-tax impairment 3 580 5 720

Post-tax impairment 2 506 4 004

Net impairment/share 0.20 0.31

Impact on EPS -49.0% -78.3%

Impact on BVPS -1.1% -1.7%

Impact on TBVPS -1.5% -2.4%

Impact on DPS -49.0% -78.3%

Capital shortage (2 506) (4 004)Core tier 1 5.4% 5.0%

Source: Cheuvreux Source: Cheuvreux

According to our analysis, in scenario 1, ISP would suffer from 49% earnings dilution vs. 82% suffered by UCG. The impact on the TBVPS08E would be 1.5% vs. 6.4% for UCG. On multiples, ISP would trade at 1.16x PTBV08E (6% core ROE) with a 5.4% core tier 1, while UCG would trade at 1.55x PTBV08E (3% core ROE) with a 5.0% core tier 1. In the base case, the capital of both banks would be sharply reduced, but while UCG would struggle with a stretched tier 1 of 5.0%, ISP could potentially avoid a rights issue with a core tier 1 of 5.4%.

In scenario 2, both banks would require a capital hike, even though ISP's core tier 1 ratio would still exceed 5%. While UCG should cut DPS to nil, even in the base case SP could afford to distribute dividends, albeit small.

Even though we expect the same core tier 1 for ISP and UCG at end-2008 (5.9%, Basel I), we believe ISP would be a safer bet than UCG (and other European banks) in a distressed scenario, specifically in our scenario 1, which might turn out to be quite realistic in the current market climate. Scenario 2 is useful to assess the impairment beyond which UCG and ISP would require a capital hike. Our estimate for a 5.9% core tier 1 at year-end is based on a static scenario, without any disposals, acquisitions or the listing of IMMIT (10bp impact on core tier 1), while for UCG, the 5.9% core tier 1 embeds a 20bp RWA optimisation (vs. 5.7% in a static scenario).

Sensitivity to outstanding risks

Scenario 1

Scenario 2

Conclusions

10 July 2008 ITALY Intesa-Sanpaolo

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III— New estimates

Trimming EPS08-10E by 3% on average We cut our EPS08-10E by 3% on average to embed a further decline in trading income and 0.7% lower net fees in 2008, a –1.4% decrease in 2009 and -1.6% in 2010, driven by: 1) the impact of the overdraft fees (we already factored in a fee slowdown, as ISP implied in the business plan – with total income CAGR06-09 of 7%, rather than 7.5%), 2) a further slowdown in asset management volumes and fees, due to the switch to banking bonds. The reduction of net fees had a milder impact on total income, as we raised 2008 interest income by 1.9% and fine-tuned our 2009-2010 forecast, based on a change in the mix. As a result, we are adjusting our total income estimates by -1.2% on average in 2008-10E. Consequently, the CAGR08-10E of net fees included in our estimates, drops from 1.3% to 0.9% and the total income CAGR08-10E falls from 5.3% to 4.4%, compared to 6.9% for Unicredito.

We kept our LLP/Loans unchanged at 41 bps for 2008, 45 bps for 2009 and 46 bps for 2010, above the company guidance of 40 bps, but a modest reduction of loan growth in 2009 led to a slight reduction in the amount. We raised the tax rate by 200 bps to reflect the impact of the "Robin Hood" tax.

INTESA-SPI: REVISED ESTIMATES

2008E 2009E 2010E

(EUR m, EUR, %) Old New % Chg. Old New % Chg. Old New % Chg.

Net interest income 11 003 11 212 1.89 11 811 11 825 0.12 12 263 12 233 -0.25

Net fees 6 503 6 459 -0.68 6 581 6 486 -1.43 6 675 6 570 -1.56

Total income 19 344 19 307 -0.19 20 472 20 149 -1.58 21 463 21 062 -1.87

Opex -9 413 -9 413 0.00 -9 154 -9 154 0.00 -9 153 -9 153 0.00

GOP 9 931 9 894 -0.38 11 318 10 995 -2.85 12 310 11 909 -3.26

LLP -1 483 -1 483 0.00 -1 718 -1 687 -1.79 -1 724 -1 802 4.50

PBT 7 711 7 673 -0.48 9 490 9 198 -3.07 10 475 9 997 -4.57

Net income 5 651 5 626 -0.44 6 074 5 874 -3.28 6 883 6 556 -4.75

EPS core 0.40 0.40 -0.49 0.50 0.48 -3.13 0.55 0.53 -4.62Source: Cheuvreux

Our EPS estimates for 2008, 2009 and 2010 are currently 6.5%, 3.3% and 4.5% below the consensus.

A direct comparison of ISP's targets and Cheuvreux estimates is misleading, as the consolidation scope used in the business plan, does not include CRFirenze (as at the time of the announcement, CRFirenze and Pravex had not yet been acquired). Despite the wider consolidation scope, our forecasts are still well below the company targets on a stand-alone basis. Based on the same consolidation scope, we are 20% below the company target for EPS in 2009E.

INTESA-SPI BUSINESS PLAN TARGETS VS. CHEUVREUX ESTIMATES

(EUR m, %, bp) 2006PF 2009 CAGR Cheuvreux (ISP stand-alone) % GAP

Revenues 18 500 22 600 6.9% 19 456 -13.8%

Operating costs 9 600 9 500 -0.3% 8 704 -8.4%

Gross operating profit 8 900 13 100 13.8% 10 782 -17.7%

LLP (bps) 39 40 43 7.3%

Net profit 4 400 7 000 16.7% 5 866 -23.1%

EPS (EUR) 0.38 0.57 14.5% 0.45 -20.4%

Source: Cheuvreux

Lower trading and fees, higher taxes

Our estimates are wellbelow company

targets

10 July 2008 ITALY Intesa-Sanpaolo

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7

Environmental. Social. Governance Issues

CORPORATE GOVERNANCE HIGHLIGHTS

1. Does the company disclose its corporate governance policies or guidelines? Yes

2. Does the company have a combined chair/CEO? No

3. Percent Independent Directors 57.90%

4. Do all executive board members own shares after excluding options held? No

5. Do all common or ordinary equity shares have one-share, one-vote, with no restrictions? Yes

6. Is there a single shareholder or shareholder group which controls a majority of the voting power of the company? No

7. Do shareowners have a right to act in concert through written communication? No

8. Do shareholders have a right to convene an EGM with 10% or less of the shares requesting one? Yes

9. Is the company currently under investigation for accounting irregularities? No

10. Has the company adopted a shareholder rights plan ("poison pill")? No

11. Potential Dilution from Stock Options Outstanding + Not Yet Granted Under Old or New Plans 0.00%

12. Disclosure on CEO remuneration details (amount detailed if disclosed) No The information contained in this table is written and presented under the sole responsibility of GMI. CA Cheuvreux does not accept any responsibility for any loss which may arise from reliance on information contained in this table Source: GMI

CORPORATE GOVERNANCE ANALYSIS

Intesa-SPI’s governance is based on a dual model. The bank is led by two boards: the supervisory board, which gives strategic guidance, and the management board, which delivers on the bank’s mission. The members of the supervisory board are representatives of the shareholding structure, while the management board consists of top managers with operational proxy.

ESG ISSUES FOR THE BANKS SECTOR 1 Human resources: how is the company managing ageing population ?

Analysis for Intesa-Sanpaolo Not disclosed

2 Offshoring: Has the company already moved some of its activities offshore? Was it profitable?

Is it going to move to offshoring? For which department? How will it manage redundancies? Analysis for Intesa-Sanpaolo No offshore activities

3 The Equator Principles and the Principles for Responsible Investment (PRI) are a benchmark for managing ESG (Environmental, Social,

Governance) risks. How is the bank providing risk management for this type of risks in any of its activities? Analysis for Intesa-Sanpaolo Not disclosed

10 July 2008 ITALY Intesa-Sanpaolo

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8

Intesa-Sanpaolo FY to 31/12 (Euro m) 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E

P&L and cash flow statement Net interest income 5 316 4 937 5 058 9 106 8 907 9 886 11 212 11 825 12 233Fees & Commissions 3 233 3 326 3 499 6 714 6 379 6 195 6 459 6 486 6 570Trading income 356 883 821 1 216 2 077 1 342 757 852 915Realised capital gains 0 0 0 0 0 0 0 0 0Net insurance contribution 0 0 0 431 452 441 441 454 472Other revenues 419 373 (6) 77 100 144 438 532 871Total income 9 324 9 519 9 372 17 848 17 915 18 008 19 307 20 149 21 061% Change - 2.1 -1.5 90.4 0.4 0.5 7.2 4.4 4.5Staff costs (3 483) (3 298) (3 216) (5 833) (5 633) (5 375) (5 529) (5 410) (5 468)Other operating costs (2 220) (2 100) (1 845) (3 114) (3 096) (3 060) (3 054) (2 864) (2 800)Depreciation (700) (690) (521) (935) (899) (833) (830) (880) (885)Operating costs (6 403) (6 088) (5 582) (9 882) (9 628) (9 268) (9 413) (9 154) (9 153)% Change - 4.9 8.3 -77.0 2.6 3.7 -1.6 2.8 0.0Pre provision operating profit 2 921 3 431 3 790 7 966 8 287 8 740 9 894 10 995 11 908% Change - 17 10 110 4 5 13 11 8Bad debt charge (2 770) (1 583) (1 206) (1 773) (1 485) (1 882) (1 627) (1 797) (1 912)Profit bef tax, exceptionals and GW [B] 151 1 848 2 584 6 193 6 802 6 858 8 267 9 198 9 996% Change - - 39.8 139.7 9.8 0.8 20.5 11.3 8.7Associates [contribution] 0 0 0 0 0 0 0 0 0Other exceptional items 208 157 170 995 112 3 790 (123) (420) (280)Pre-Tax Profit 359 2 005 2 754 7 188 6 914 10 648 8 144 8 778 9 716% Change - - 37.4 161.0 -3.8 54.0 -23.5 7.8 10.7Tax 35 (580) (799) (1 936) (2 033) (2 672) (2 379) (2 759) (2 999)Goodwill amortisation (140) (130) 0 (53) 0 (617) 0 0 0Minorities (54) (81) (114) (191) (174) (109) (138) (144) (161)Net attributable profit [loss] [B] 200 1 214 1 841 5 008 4 707 7 250 5 627 5 875 6 556% Change - - 51.6 172.0 -6.0 54.0 -22.4 4.4 11.6Adjust.: Op Profit [after tax] 452 368 0 0 0 0 0 0 0Adj. for exceptional items (24) (112) (60) (266) 62 (2 639) (534) 294 196Adj. for GW [group share] 0 0 0 0 0 0 0 0 0NAP [Loss], restated after goodwill 628 1 470 1 781 4 742 4 769 4 611 5 092 6 168 6 752% Change - 134.1 21.2 166.3 0.6 -3.3 10.4 21.1 9.5 Financial Ratios ROE [%] 1.4 8.3 14.1 18.1 9.6 12.5 9.5 9.6 10.4Core ROE [%] 2.6 9.8 14.1 18.3 14.8 19.6 13.4 13.4 14.3Pre tax ROA [%] 0.06 0.69 0.00 1.15 1.17 1.15 1.34 1.43 1.49Pre tax RoRWA [%] 0.08 1.01 1.42 1.94 1.93 1.86 2.09 2.25 2.38Cost income ratio [%] 68.7 64.0 59.6 55.4 53.7 51.5 48.8 45.4 43.5Bad debt charge [% av. RWA] (1.39) (0.83) (0.66) (0.56) (0.42) (0.51) (0.43) (0.45) (0.46)Provision charge [% avg customer credits] 1.69 0.99 0.77 0.57 0.45 0.55 0.45 0.48 0.49 Revenue Breakdown Net interest income [% NBI] 57 52 54 53 51 56 59 60 59Trading income [% NBI] 2 8 7 4 10 6 2 2 3Commissions [% NBI] 35 35 37 39 37 35 34 33 32Other income [% NBI] 4 4 (0) 0 1 1 2 3 4 P/L as a % of RWA (avg) NBI [% av. RWA] 4.67 4.99 5.15 5.59 5.09 4.88 5.04 5.01 5.08Net interest income [% av. RWA] 2.66 2.59 2.78 2.85 2.53 2.68 2.93 2.94 2.95Overheads [% av. RWA] 3.21 3.19 3.06 3.10 2.73 2.51 2.46 2.27 2.21Gross operating profit [% av. RWA] 1.46 1.80 2.08 2.50 2.35 2.37 2.58 2.73 2.87Bad debt charge [% av. RWA] (1.39) (0.83) (0.66) (0.56) (0.42) (0.51) (0.43) (0.45) (0.46)Net attrib. profit, restated [% av. RWA] 0.32 0.77 0.98 1.49 1.35 1.25 1.33 1.53 1.63

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Intesa-Sanpaolo FY to 31/12 (Euro m) 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E

Per Share Data EPS, reported 0.03 0.18 0.27 0.39 0.37 0.57 0.44 0.46 0.51% Change - - 51.1 47.4 -6.1 54.1 -22.4 4.5 11.5EPS before goodwill 0.11 0.23 0.26 0.38 0.37 0.41 0.40 0.48 0.53% Change - 108.1 11.7 45.3 -0.5 9.7 -2.7 21.4 9.3Dividend per share 0.02 0.05 0.11 0.22 0.38 0.38 0.30 0.34 0.37Book value per share 2.0 2.1 1.9 2.1 3.7 4.4 4.6 4.7 4.8Tangible book value per share 1.9 2.0 1.9 2.1 2.3 3.1 3.2 3.3 3.5Restated NAV per share 1.9 2.0 1.9 2.1 2.3 3.2 3.2 3.3 3.5 Latest price 2.01 3.10 3.54 4.48 5.85 5.41 3.67 3.67 3.67High 3.76 3.35 3.57 4.55 5.85 6.28 5.42 0.00 0.00Low 1.39 1.77 2.64 3.48 4.23 5.06 3.53 0.00 0.00Average price 2.58 2.60 3.07 3.86 4.90 5.58 4.45 0.00 0.00 Market capitalisation (Euro m) 74 812 69 148 46 947 46 947 46 947Detailed N° of shares (m) 6 916.000 6 916.000 6 916.000 12 788.300 12 781.600 12 781.600 12 781.600 12 781.600 12 781.600Av. number of shares, adjusted (m) 6 916.000 6 916.000 6 916.000 12 788.300 12 781.600 12 781.600 12 781.600 12 781.600 12 781.600Valuation multiples and ratios P/E 22.1 14.6 13.7 12.1 15.7 15.0 9.2 7.6 7.0P/E before goodwill 18.1 13.4 13.7 11.9 15.7 13.2 9.2 7.6 7.0Yield [%] 0.7 1.6 3.0 4.9 6.5 7.0 8.2 9.2 10.1Payout ratio [%] 51.9 27.9 39.4 56.2 103.2 67.0 68.2 73.5 72.1P/BV 1.00 1.44 1.85 2.09 1.60 1.22 0.80 0.78 0.76P/BV [excl GBFR] 1.00 1.45 1.85 2.09 1.60 1.22 0.80 0.78 0.76 Balance sheet Due from banks [incl repos] 32 304 30 025 28 565 58 851 62 556 65 684 67 654 69 007 70 388Customer credits & leases 164 378 154 544 159 369 308 985 327 410 340 506 360 501 374 921 393 667Fixed income securities 32 907 39 892 57 810 34 216 41 188 41 188 46 618 44 426 60 898Trading securities 32 907 29 432 7 337 76 104 87 514 89 264 144 334 148 309 148 621Variable income securities 0 0 0 27 873 5 696 5 696 0 0 0Financial investments & associates 4 618 4 908 2 174 2 910 2 863 2 920 2 949 3 038 3 099Goodwill 773 832 0 0 17 350 17 350 17 350 17 350 17 350Other assets 39 217 41 051 14 252 20 389 19 730 19 925 20 399 25 111 27 674Total assets [B] 269 960 255 857 270 333 534 429 591 234 609 565 686 944 709 453 727 430Due to banks [incl repos] 43 646 31 626 34 220 67 453 76 687 77 454 74 128 76 352 78 642Customer deposits [excl repos] 109 918 104 605 180 521 207 576 223 534 234 711 226 528 226 528 226 528Debt evidenced by securities 66 726 56 591 0 119 305 120 365 122 772 126 455 134 043 142 085Other liabilities 33 574 35 234 42 272 52 707 110 075 93 532 11 998 77 (49 729)Minority interests 730 706 1 037 1 034 985 946 908 953 1 001Pref shares and hybrid capital 1 301 1 301 1 301 2 517 2 517 2 517 2 517 2 517 2 517Shareholders' equity [group share] 14 065 15 191 13 969 30 188 51 558 61 429 62 198 64 238 66 474Total liabilities and shareholders' funds 269 960 255 857 270 333 534 429 591 234 609 565 686 944 709 453 727 430Solvency and liquidity Customer deposits/Customer loans 66.9 67.7 113.3 67.2 68.3 68.9 62.8 60.4 57.5Risk weighted assets [end of period] 199 600 182 300 182 042 319 264 352 101 369 100 396 555 408 452 420 705% Change - -8.7 -0.1 75.4 10.3 4.8 7.4 3.0 3.0Total Tier 1 capital 13 609 14 361 13 900 27 908 19 353 26 381 26 939 28 538 29 913Tier 1 ratio [%] 6.7 7.8 7.6 8.1 8.0 6.3 6.6 6.8 7.0Core eco capital, group share 8 991 9 615 9 677 23 213 14 548 21 913 22 362 23 756 26 395

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Important Disclosures

APPLICABLE DISCLOSURE CLAUSES

Company Closing Price Rating Disclosures

Intesa-Sanpaolo EUR3.67 2/Outperform A, B, E, J

A - One or more companies in the Crédit Agricole S.A. group owned more than 1% of the total issued share capital of the Company as of the end

of the second most recent month preceding the publication date of this report.

B - One or more companies in the Crédit Agricole S.A. group owned more than 5% of the total issued share capital of the Company as of the end of the second most recent month preceding the publication date of this report.

C - The Company owned more than 5% of the total issued share capital of Crédit Agricole SA as of the end of the second most recent month preceding the publication date of this report.

D - One or more companies in the Crédit Agricole S.A. group held, as of the end of the second most recent trading day, a net sales position higher than 1% of the total issued share capital of the Company.

E - The trading portfolio of one or more companies in the Crédit Agricole S.A. group contained shares of the Company as of the end of the second most recent trading day.

F - Crédit Agricole Cheuvreux and/or a company in the Crédit Agricole S.A. group is a market maker or a liquidity provider for the financial instruments of the Company.

G - Calyon and/or a company in the Crédit Agricole S.A. group has been involved within the last three years in a publicly disclosed offer of or on financial instruments of the Company.

H - Calyon and/or a company in the Crédit Agricole S.A. group has concluded or is party to a non confidential agreement relating to the provision of investment banking services (except publicly disclosed offers mentioned under G) to the Company during the past 12 months or that has given rise during the same period to the payment of compensation or to the promise to get a compensation paid.

I - This research has been communicated to the Company and following this communication, its conclusions have been amended before its dissemination.

J - A director or a board member of the Crédit Agricole S.A. group is an officer, director, or board member of the Company.

SPECIFIC DISCLOSURE CLAUSES

None

CHEUVREUX'S RATING AND TARGET PRICE SYSTEM

Ratings are built for a 6 to 12 month time horizon.

1/Selected List Expected to outperform the market and is in our country selected list

2/Outperform Expected to outperform the market

3/Underperform Expected to perform at best in line with the market

4/Sell Expected to underperform the market substantially

No Rating or Suspended The investment rating and target price have been suspended. Such suspension is pursuant to Cheuvreux's policy in circumstances when Cheuvreux's parent company, Calyon, is acting in an advisory capacity in a merger or strategic transaction involving this company or when Calyon or Crédit Agricole has a beneficial interest in this company and in certain other circumstances.

Target price methodology Cheuvreux's target prices are derived from one or more of the following methodologies: DCF, SOP, peer comparison and EVA.

Quote definitions Unless specified, all quotes that appear on Institutional research reports are closing prices the last business day.

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OVERALL RATING BREAKDOWN (AS AT 31/12/2007) RATING BREAKDOWN IN THE SECTOR (AS AT 31/12/2007)

0

50

100

150

200

250

300

350

400

450

1/Selected List 2/Outperform 3/Underperform 4/Sell

Number of companies in each category

Number of companies in each rat ing having received Calyon investment banking services within the last 12months

0

5

10

15

20

25

1/Selected List 2/Outperform 3/Underperform 4/Sell

SHARE PRICE TREND AND DATES OF CHANGES IN RATING AND/OR TARGET PRICE

DATES OF CHANGES IN TARGET PRICE AND/OR RATING

N° Date Rating Target price

1 31/01/2007 2/Outperform EUR6.50

2 08/05/2007 3/Underperform

3 26/07/2007 EUR5.80

4 06/03/2008 EUR5.00

5 21/03/08 EUR4.70

3

2

1

3.59

4.09

4.59

5.09

5.59

6.09

10/06 01/07 04/07 07/07 10/07 01/08 04/08

Share price Rating change Target price change

6 10/07/2008 2/Outperform EUR4.30

LOCAL REGULATORY AUTHORITIES

Country Cheuvreux legal entity Regulatory authority

France Crédit Agricole Cheuvreux SA Autorité des Marchés Financiers (AMF)

Germany Crédit Agricole Cheuvreux Niederlassung - Frankfurter Branch

Bundesanstalt für Finanzdienstleistungsaufsicht (Bafin)

Italy Crédit Agricole Cheuvreux Italia SIM SpA Commissione Nazionale per le Societa e la Borsa (Consob)

Netherlands Crédit Agricole Cheuvreux - Amsterdam Branch Autoriteit Financiële Markten (AFM)

Spain Crédit Agricole Cheuvreux Espana SV SA Comisión Nacional del Mercado de Valores (CNMV)

Sweden Crédit Agricole Cheuvreux Nordic AB Finansinspektionen

Switzerland Crédit Agricole Cheuvreux - Zurich Branch Swiss Federal Banking Commission (SFBC)

UAE Crédit Agricole Cheuvreux - Middle East Branch Dubai Financial Services Authority (DFSA)

UK Crédit Agricole Cheuvreux International Ltd Financial Services Authority (FSA)

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www.cheuvreux.com

RESEARCH & DISTRIBUTION CENTRES

BENELUX CRÉDIT AGRICOLE CHEUVREUX – AMSTERDAM BRANCH HONTHORSTSTRAAT 9 1071 DC AMSTERDAM TEL: +31 20 573 06 66 FAX: +31 20 672 40 41

FRANCE CRÉDIT AGRICOLE CHEUVREUX S.A. 9, QUAI PAUL DOUMER 92400 COURBEVOIE TEL: +33 1 41 89 70 00 FAX: +33 1 41 89 70 05

GERMANY CRÉDIT AGRICOLE CHEUVREUX – FRANKFURT BRANCH TAUNUSANLAGE 14 D-60325 FRANKFURT AM MAIN TEL: +49 69 47 897 100 FAX: +49 69 47 897 530

ITALY CRÉDIT AGRICOLE CHEUVREUX ITALIA SIM S.P.A. VIA BRERA 21 20121 MILAN TEL: +39 02 80 62 83 00 FAX: +39 02 86 46 15 70

SPAIN CRÉDIT AGRICOLE CHEUVREUX ESPAÑA S.V. S.A. PASEO DE LA CASTELLANA 1 28046 MADRID TEL: +34 91 432 78 21 FAX: +34 91 432 75 13

SWEDEN CRÉDIT AGRICOLE CHEUVREUX NORDIC AB REGERINGSGATAN 38 10393 STOCKHOLM TEL: +468 723 5100 FAX: +468 723 5101

SWITZERLAND CRÉDIT AGRICOLE CHEUVREUX – ZURICH BRANCH BAHNHOFSTRASSE 18 8001 ZURICH TEL: +41 44 218 17 17 FAX: +41 44 212 25 50

UNITED ARAB EMIRATES CRÉDIT AGRICOLE CHEUVREUX – MIDDLE EAST BRANCH 702, 7TH FLOOR, PRECINCT BUILDING #2, THE GATE DISTRICT DUBAI INTERNATIONAL FINANCIAL CENTRE P.O. BOX 506611 DUBAI, UAE TEL: +971 4 428 3600 FAX: +971 4 428 3644

UNITED KINGDOM CRÉDIT AGRICOLE CHEUVREUX INTERNATIONAL LIMITED 12TH FLOOR MOORHOUSE - 120 LONDON WALL LONDON EC2Y 5ET TEL: +44 207 621 5100 FAX: +44 207 621 5101

DISTRIBUTION CENTRES

JAPAN CHEUVREUX CALYON CAPITAL MARKETS ASIA B.V., TOKYO BRANCH SHIODOME SUMITOMO BUILDING, 15TH FLOOR 1-9-2 HIGASHI-SHIMBASHI MINATO-KU TOKYO 105-0021 TEL: +81 3 4580 8522 FAX: +81 3 4580 5534

UNITED STATES CRÉDIT AGRICOLE CHEUVREUX NORTH AMERICA, INC. 1301 AVENUE OF THE AMERICAS 15TH FLOOR NEW YORK, NY 10019 TEL: +1 (212) 492 8800 FAX: +1 (212) 492 8801

Copyright © Crédit Agricole Cheuvreux, 2008. All rights reserved This research report or summary ("Research") has been prepared by Crédit Agricole Cheuvreux or one of its affiliates or branches (collectively “CA Cheuvreux”) from information believed to be reliable. The opinions and projections expressed in this document are entirely those of CA Cheuvreux and are given as part of its normal research activity. CA Cheuvreux has not independently verified the information given in this document. Accordingly, no representation, guarantee or warranty, express or implied, is made as to the accuracy, completeness, correctness or fairness of this information and opinions contained in this document or the research or analysis upon which such information and opinions are based. Any opinions or estimates expressed herein reflect the judgment of CA Cheuvreux as of the date the Research was prepared and are subject to change at any time without notice. Unless otherwise stated, the information or opinions presented, or the research or analysis upon which they are based, are updated as necessary and at least annually. Not all investment strategies are appropriate at all times, and past performance is not necessarily a guide to future performance. CA Cheuvreux recommends that independent advice should be sought, and that investors should make their own independent decisions as to whether an investment or instrument is proper or appropriate based on their own individual judgment, their risk-tolerance, and after consulting their own investment advisers. CA Cheuvreux, its parent companies or its affiliates may effect transactions in the securities described herein for their own account or for the account of others, may have positions with the issuer thereof, or any of its affiliates, or may perform or seek to perform securities, investment banking or other services for such issuer or its affiliates. The organisational and administrative arrangements established by CA Cheuvreux for the management of conflicts of interest with respect to investment research are consistent with rules, regulations or codes applicable to the securities industry. These arrangements can be found in CA Cheuvreux’s policy for managing conflicts of interest, available at www.cheuvreux.com. Current research disclosures regarding companies mentioned in this Research are also available at www.cheuvreux.com. This Research is provided for information purposes only. It is not intended as an offer, invitation or solicitation to buy or sell any of the securities described or discussed herein and is intended for use only by those professional investors to whom it is made available by CA Cheuvreux. This Research is not for distribution to Retail Clients. The recipient acknowledges that, to the extent permitted by applicable securities laws and regulations, CA Cheuvreux disclaims all liability for providing this Research, and accepts no liability whatsoever for any direct, indirect or consequential loss arising from the use of this document or its contents. 1. IN THE UNITED STATES, CREDIT AGRICOLE CHEUVREUX NORTH AMERICA, INC. (“CAC NORTH AMERICA”) SPECIFICALLY ADVISES THAT IT DID NOT PREPARE, HAS NOT CONTRIBUTED TO, HAS NOT ANALYZED, AND DOES NOT ENDORSE THIS RESEARCH. CAC North America is a SEC-registered broker-dealer, and is not an investment adviser. CAC North America does not manage assets of other entities, CAC North America does not provide investment advice, and CAC North America neither issues nor promulgates reports or analyses within the meaning of Section 202(a)(11) of the Investment Company Act of 1940, as amended. CAC North America is unable to provide any additional information of any sort regarding this Research, and can neither support or refute any of the content, opinions, estimates, or conclusions contained in the Research. CAC North America further advises that this Research is solely intended to be delivered to customers of CAC North America who qualify as “Major U.S. institutional investors” as defined in Rule 15a-6 of the Securities and Exchange Act of 1934, as amended (“CAC North America Customers”). CAC North America Customers are restricted from re-delivering the Research to any other entity, and shall be held strictly liable for any and all costs, legal fees, damages, fines, or penalties resulting from any re-delivery of the Research to persons or entities other than CAC North America Customers. The existence of this Research, or CAC North America’s forwarding the Research to certain of its customers, shall not be deemed a recommendation or endorsement by CAC North America of the Research, a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed in the Research. 2. In the United Kingdom, this report is approved and/or distributed by Crédit Agricole Cheuvreux International Ltd (authorised and regulated by the Financial Services Authority (“FSA”). 3. In Italy, this Research is approved and/or distributed by Crédit Agricole Cheuvreux Italia SIM S.p.a. (regulated by CONSOB) and is not intended for circulation or distribution either to the public at large or to any other parties other than professional clients and/or qualified counterparties, as defined in Legislative Decree No.58 of 24 February 1998 as amended, and implementing Consob regulations. 4. In the United Arab Emirates, this Research is approved and/or distributed by CA Cheuvreux Middle East, based out of Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA). DIFC is a wholesale jurisdiction and firm's activities are directed only towards wholesale clients. THE DISTRIBUTION OF THIS DOCUMENT IN OTHER JURISDICTIONS MAY BE RESTRICTED BY LAW, AND PERSONS INTO WHOSE POSSESSION THIS DOCUMENT COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, ANY SUCH RESTRICTIONS. BY ACCEPTING THIS REPORT YOU AGREE TO BE BOUND BY THE FOREGOING INSTRUCTIONS. No part of this report may be reproduced in any manner or redistributed without the prior written permission of CA Cheuvreux.