Euro Stoxx Sectors -1 day chg % Basic Materials Telecoms Industrials Energy Utilities

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1 Calls from Italy Company News 2 Autogrill (ADD): Canadian Contract Renewed 2 Banco Popolare (HOLD): Buy-back and Stock Granting 2 Enel (BUY): HV Grid Disposal 2 Finmeccanica (ADD): New Contract for Breda and Projections on MBDA 3 Mondo Home Ent. (UR): FY09 Results 3 RCS Mediagroup (HOLD): Advertising Revenue Should be Up in 1Q10 3 Sogefi (BUY): CEO s Statement 4 Telecom Italia (NO RATING): Around EUR 500M Payment 4 Intesa Sanpaolo Research Department Team Corporate Broking Research Team News 5 Asset Gatherers: Back to Black in March for EUR 1.9Bn 5 Special Situations 6 Long Pirelli: Closing our Trading Idea 6 Vote for Banca IMI Country analysis: Italy Equity Sales: Italy EU Small&Mid Caps: Italy 2010 Extel Pan-European Survey online: Euro Stoxx & FTSE MIB Best Performers Euro Stoxx s -1 day chg % Financial Technology Consumer Services Consumer Goods Healthcare Italian FTSE MIB -1 day chg % Finmeccanica Prysmian Pirelli Davide Campari Buzzi Unicem Source: Euro Stoxx & FTSE MIB Worst Performers Euro Stoxx s -1 day chg % Basic Materials Telecoms Industrials Energy Utilities Italian FTSE MIB -1 day chg % Fiat Eni Saipem Intesa Sanpaolo Bulgari Source: Equity Indices Performances Italy -1 day chg % FTSE It. All Share FTSE MIB FTSE It. Star Europe -1 day chg % DAX CAC IBEX FTSE US -1 day chg % Dow Jones NASDAQ S&P Source: Priced at close of market on the day before the issue of the report (except where otherwise indicated). See page 7 for full disclosures and analyst certification

2 Company News Autogrill (ADD): Canadian Contract Renewed News: Autogrill obtained a EUR 6.5Bn contract for the renewal of its highway (the 400 and 401) concession in Canada: In detail the contract foresees the renewal of its 16 existing point of sale plus 7 new ones. The contract has a duration of 50 years and once on stream the sales points should generate roughly EUR 74M revenue per year. The refurbishment and the set up of the sales points should involve total investments of roughly EUR 216M, one third of which will be sustained by HKSC (the Autogrill JV with the HMHost group). Our view: Despite not being highly significant on our figures, we positively view the news as it confirms the company s ability in obtaining renewals and even widening its concessions. We thus confirm our ADD rating and target price of EUR 10.2/share. Food & Retail Target price (EUR) ADD Mkt price (EUR) 9.36 Mkt cap (EUR M) 2381 P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All Luca Bacoccoli luca.bacoccoli@intesasanpaolo.com Banco Popolare (HOLD): Buy-back and Stock Granting News: Banco Popolare has renewed the proposal to buyback and sell treasury shares to support the stock liquidity for a maximum of EUR 50M (1.5% of current market cap). Moreover, Banco Popolare approved a share buy-back to provide the stock option plan, for a maximum of EUR 35M per year (1% of current market cap) in 2010 and Our view: We expect no significant impact on the stock. HOLD. Banks Target price (EUR) 6.16 HOLD Mkt price (EUR) 5.16 Mkt Cap (EUR M) 3,305 P/E P/BVPS Absolute Rel. to FTSE It. All Manuela Meroni manuela.meroni@intesasanpaolo.com Enel (BUY): HV Grid Disposal News: According to press (Milano Finanza), Red Electrica de Espana is going to offer EUR 1.3Bn for the HV grid acquisition from Endesa. According to the same article, the value for which Enel is looking could be around EUR 1.8Bn (the book value should be around EUR 1Bn). Our view: The disposal of the HV grid is part of the remaining disposal plan (around EUR 7Bn). In our last report we conservatively assumed this asset to be disposed of for EUR 1Bn. Therefore, we do not consider this news as a risk for our positive view on the stock. Maintain BUY, target EUR 5.3/share. Utilities Target price (EUR) 5.30 BUY Mkt price (EUR) 4.15 Mkt cap (EUR M) P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All Roberto Ranieri roberto.ranieri@intesasanpaolo.com Intesa Sanpaolo Research Department 2

3 Finmeccanica (ADD): New Contract for Breda and Projections on MBDA News: Yesterday, Ansaldo Breda was awarded a new contract, worth EUR 33M, for the revamping of 51 jumbo trams for the ATM group (the transport company which operates in Milan, Italy). The group was also granted an option for a further 49 vehicles. Lastly, in the System Defence business, MBDA (Finmeccanica 25% in a JV with Eads and BAE) announced a revenue target of EUR 4Bn by end-2020 (vs. EUR 2.6Bn in 2009). Our view: Despite not being significant in size, we positively view the Ansaldo Breda contract award as it might help the group to progressively restore its operating figures. We highlight that of Finmeccanica s companies, Ansaldo Breda is the most critical one in terms of fundamentals and future potential. This year, we expect the company to lose roughly EUR 75M at the EBITA level. Aerospace & Defence Target price (EUR) ADD Mkt price (EUR) Mkt cap (EUR M) 5946 P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All Monica Bosio monica.bosio@intesasanpaolo.com Mondo Home Ent. (UR): FY09 Results News. Mondo Home Entertainment reported in FY09 revenues at EUR 23.7M (vs. EUR 33.5M in FY08), with a contribution from DVD sales (45%) and cinema revenues (23%) roughly in line with the 2009 budget. However, the movies rights contracts for free and pay TV contributed with a lower than expected amount (18%). EBITDA was EUR 4.1M (vs. EUR 2.8M in FY08), with an EBITDA margin at 17.3%; EBIT came in at EUR -1.5M and the company closed FY09 with a net loss of EUR 1.9M (vs. EUR -7.5M in FY08). NFP stood at EUR 23.3M, roughly in line with 2008; the consolidated equity at year-end was negative for EUR 1.6M (vs. EUR 0.3M in FY08). In addition, the ordinary general meeting of the controlled company Moviemax decided to suspend the process for the dissolution of Moviemax itself and to proceed shortly with the debt restructuring. Our View. While awaiting to fully analyse the FY09 results, our target price and recommendation are Under Review. Media Target price (EUR) 0.16 Under review REDUCE Under review Mkt price (EUR) 0.17 Mkt cap (EUR M) 0 P/E n.a. EV/sales n.a. EV/EBITDA n.a. Absolute Rel. to FTSE It. All Serena Polini Corporate Broking Research serena.polini@intesasanpaolo.com RCS Mediagroup (HOLD): Advertising Revenue Should be Up in 1Q10 News: In an article in Il Sole 24Ore, the group s CFO, Mr. Stilli, give some hints about the group s current trend: the most relevant news is that advertising revenue should be up in 1Q10: Internet advertising should grow at a double-digit rate and revenue should also increase for publishing both in Italy and Spain. However, visibility remains poor and it is not yet possible to predict if this positive trend will be maintained in the coming months. Mr. Stilli also confirmed that the target of EUR 200M savings could be reached earlier than anticipated. Lastly, the disposal of non-core assets should continue. Our view: The advertising trend is better than our FY10 assumption that points at flat adv revenue. However, we believe that visibility remains poor and we confirm our neutral stance on the stock. Media Target price (EUR) 1.06 HOLD Mkt price (EUR) 1.33 Mkt cap (EUR M) 995 P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All Lorenzo Re lorenzo.re@intesasanpaolo.com Intesa Sanpaolo Research Department 3

4 Sogefi (BUY): CEO s Statement News: According to Bloomberg, which reported an interview with Sogefi CEO, Sogefi is going to double its revenues in the US in the next two years. Total US revenues should thus represent roughly 5% of group net sales. Views: We see the target as being achievable, also considering that, according to the interview, Sogefi won a contract to provide engine oil filters for a model that Chrysler is developing. In addition the group, in our opinion, could potentially obtain new contracts from Ford which, consistently with new US anti pollution requirements, is adding to its line-up of small cars. Within this context Sogefi retooled its factory in west Virginia to supply diesel engine filters to Ford's plant in Michigan. The group will also supply filters for Fiat's 500 which will be introduced in the US. We highlight that Fiat targets sales of 100k new Fiat 500s in North America. In addition Fiat would have asked Sogefi to supply filters for about 150k vehicles from a line of models still being developed. We view all this news as very positive as we have not yet fully accounted in our estimates Sogefi's higher penetration in the US. We thus confirm our BUY rating on the stock (target price EUR 2.68). On the other hand we are more cautious regarding potential future acquisitions (as stated by the CEO, possibly in South Korea and Turkey), that despite being strategically positive and small-medium in size, might put pressure on the group's recently restored financial position. Autos & Components Target price (EUR) 2.68 BUY Mkt price (EUR) 2.35 Mkt cap (EUR M) 268 P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All Monica Bosio monica.bosio@intesasanpaolo.com Telecom Italia (NO RATING): Around EUR 500M Payment News: According to Reuters, Telecom Italia should pay the Agenzia delle Entrate (tax agency) and the Rome Public Prosecutors Office EUR 493M in relation to TI Sparkle s non-payment of VAT. View: This amount would be in line with our estimate of EUR M. Telecoms NO RATING Mkt price (EUR) 1.08 Mkt cap (EUR M) P/E EV/sales EV/EBITDA Absolute Rel. to FTSE It. All We assign no rating to Telecom Italia in view of Intesa Sanpaolo s involvement in Telco. Alberto Francese alberto.francese@intesasanpaolo.com Lorenzo Re lorenzo.re@intesasanpaolo.com Intesa Sanpaolo Research Department 4

5 News Asset Gatherers: Back to Black in March for EUR 1.9Bn News: The mutual funds industry experienced a EUR 1.9Bn inflow in March 2010, compared to a positive EUR 253M in January and EUR -568M in February (vs. average monthly EUR 1.4Bn in 4Q09 and EUR -255M in 2009). In March 2010, inflows were once again concentrated in Bond funds (EUR 3.1Bn), Flexible (EUR 852M) and Balanced funds (EUR 826M), but Liquidity suffered a EUR 3.0Bn outflow. Below, we show the detailed flows for each category: Sergio Ciaramella sergio.ciaramella@intesasanpaolo.com Liquidity funds: EUR -2.96Bn net outflow (vs. total EUR -823M in 2009), with the value of the relative assets down vs. last month to EUR 79.9Bn (representing 18.0% of total); Flexible funds: EUR 852M net inflow (vs. EUR 874M in 2009), with assets up to EUR 60.2Bn (13.5%); Balanced funds: EUR 826M net inflow (vs. EUR -375M in 2009), with assets up at EUR 19.3Bn (4.3%); Equity funds: EUR -12M net outflow (EUR 2.4Bn in 2009), with assets increasing to EUR 97.1Bn (21.9%); Hedge funds: EUR 31M net inflow (after being negative for 22 months in a row, with a 2009 balance of EUR -4.7Bn), with assets stable at EUR 14.3Bn (3.2%); Bond funds: EUR 3.1Bn net inflow (EUR -497M in 2009), with assets rising to EUR 173.4Bn (39.0%). The total value of assets under management for the entire Italian system stands at EUR Bn, down by 22.1% compared with YE07, when it stood at EUR 570.0Bn, +10.3% vs. YE08, when it totalled EUR 402.7Bn and up by 3.3% vs. YE09 (EUR 429.9Bn). Italian AuM Monthly net flows trend over the last 6M (EUR M) Italian AuM Net flows trend by fund, YTD (EUR M) 1,259 1,267 1,599 1,861 1,771 5,109 2, Oct Nov Dec Jan 2010 Feb Mar Source: Intesa Sanpaolo Research elaborations on Assogestioni data -7,119 Equity Balanced Bond Liquidity Flexible Hedge Source: Intesa Sanpaolo Research elaborations on Assogestioni data Our view: In March, although Equity funds was close to break-even, total assets grew by 6.5% mom (only Balanced performed better, with assets rising by 7.6% vs. February, though supported by a positive EUR 826M inflow), thus privileging equity-focused players, like Azimut. According to Assogestioni s surveying methodology, Generali Group (ADD, EUR 21.23/share target price), representing 3.10% of the whole market, posted a net inflow of EUR 99.4M, Azimut (ADD, EUR 10.42/share target price), which represents 3.19% of the market, recorded inflows of EUR 85.8M, and Mediolanum (ADD, EUR 5.37/share target price), holding 3.97% of the market, posted a positive monthly inflow of EUR 216.2M, thus being the best performer amongst the players under our coverage. Intesa Sanpaolo Research Department 5

6 Special Situations Please see our monthly reports Special Situations: Hot Stories and Cold Cases for full details. Long Pirelli: Closing our Trading Idea News: With reference to our trading idea opened in our Special Situation report of 5 March 2010, we suggest closing the play, based on the market price trend, which has resulted in a 14.5% gain, outperforming the FT IT All Shares by 7.9%. Monica Bosio monica.bosio@intesasanpaolo.com Long Pirelli Position Historical price (EUR/sh) Current price (EUR/sh) Performance (%) Status Pirelli Long Closed Source: Intesa Sanpaolo Research estimates Intesa Sanpaolo Research Department 6

7 Disclaimer Analyst certification The financial analysts who prepared this report, and whose names and roles appear within the document, certify that: (1) The views expressed on companies mentioned herein accurately reflect independent, fair and balanced personal views; (2) No direct or indirect compensation has been or will be received in exchange for any views expressed. Specific disclosures 1. Neither the analysts nor any members of the analysts households have a financial interest in the securities of the Companies. 2. Neither the analysts nor any members of the analysts households serve as an officer, director or advisory board member of the Companies. 3. Some of the analysts named in the document are members of AIAF. 4. The analysts named in this document are not registered with or qualified by FINRA, the U.S. regulatory body with oversight over Banca IMI Securities Corp. Accordingly, the analyst may not be subject to NASD Rule 2711 and NYSE Rule 472 with respect to communicates with a subject company, public appearances and trading securities in a personal account. For additional information, please contact the Compliance Department of Banca IMI Securities Corp at The analysts of this report do not receive bonuses, salaries, or any other form of compensation that is based upon specific investment banking transactions. 6. The research department supervisors do not have a financial interest in the securities of the Companies. This research has been prepared by Intesa Sanpaolo SpA and distributed by Banca IMI SpA Milan, Banca IMI SpA-London Branch (a member of the London Stock Exchange) and Banca IMI Securities Corp (a member of the NYSE and NASD). Intesa Sanpaolo SpA accepts full responsibility for the contents of this report and also reserves the right to issue this document to its own clients. Banca IMI SpA and Intesa Sanpaolo SpA, which are both part of the Intesa Sanpaolo Group, are both authorised by the Banca d'italia and are both regulated by the Financial Services Authority in the conduct of designated investment business in the UK and by the SEC for the conduct of US business. Opinions and estimates in this research are as at the date of this material and are subject to change without notice to the recipient. Information and opinions have been obtained from sources believed to be reliable, but no representation or warranty is made as to their accuracy or correctness. Past performance is not a guarantee of future results. The investments and strategies discussed in this research may not be suitable for all investors. If you are in any doubt you should consult your investment advisor. This report has been prepared solely for information purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any financial products. It should not be regarded as a substitute for the exercise of the recipient s own judgment. No Intesa Sanpaolo SpA or Banca IMI SpA entities accept any liability whatsoever for any direct, consequential or indirect loss arising from any use of material contained in this report. This document may only be reproduced or published together with the name of Intesa Sanpaolo SpA and Banca IMI SpA. Intesa Sanpaolo SpA and Banca IMI SpA have in place a Joint Conflicts Management Policy for managing effectively the conflicts of interest which might affect the impartiality of all investment research which is held out, or where it is reasonable for the user to rely on the research, as being an impartial assessment of the value or prospects of its subject matter. A copy of this Policy is available to the recipient of this research upon making a written request to the Compliance Officer, Intesa Sanpaolo SpA, 90 Queen Street, London EC4N 1SA. Intesa Sanpaolo SpA has formalised a set of principles and procedures for dealing with conflicts of interest ( Research Policy ). The Research Policy is clearly explained in the relevant section of Intesa Sanpaolo s web site ( Member companies of the Intesa Sanpaolo Group, or their directors and/or representatives and/or employees and/or members of their households, may have a long or short position in any securities mentioned at any time, and may make a purchase and/or sale, or offer to make a purchase and/or sale, of any of the securities from time to time in the open market or otherwise. Intesa Sanpaolo SpA issues and circulates research to Qualified Institutional Investors in the USA only through Banca IMI Securities Corp., 1 William Street, New York, NY 10004, USA, Tel: (1) Residents in Italy: This document is intended for distribution only to professional investors as defined in art.31, Consob Regulation no of either as a printed document and/or in electronic form. Person and residents in the UK: This document is not for distribution in the United Kingdom to persons who would be defined as private customers under rules of the FSA. US persons: This document is intended for distribution in the United States only to Qualified Institutional Investors as defined in Rule 144a of the Securities Act of US Customers wishing to effect a transaction should do so only by contacting a representative at Banca IMI Securities Corp. in the US (see contact details above). Coverage policy and frequency of research reports The list of companies covered by the Research Department is available upon request. Intesa Sanpaolo SpA aims to provide continuous coverage of the companies on the list in conjunction with the timing of periodical accounting reports and any exceptional event that affects the issuer s operations. The companies for which Banca IMI acts as sponsor or specialist are covered in compliance with regulations issued by regulatory bodies with jurisdiction. In the case of a short note, we advise investors to refer to the most recent company report published by Intesa Sanpaolo SpA s Research Department for a full analysis of valuation methodology, earnings assumptions, risks and the historical of recommendation and target price. Research is available on Banca IMI s web site ( or by contacting your sales representative. Intesa Sanpaolo Research Department 7

8 Valuation methodology (long-term horizon: 12M) The Intesa Sanpaolo SpA Department values the companies for which it assigns recommendations as follows: We obtain a fair value using a number of valuation methodologies including: discounted cash flow method (DCF), dividend discount model (DDM), embedded value methodology, return on allocated capital, break-up value, asset-based valuation method, sum-of-the-parts, and multiples-based models (for example PE, P/BV, PCF, EV/Sales, EV/EBITDA, EV/EBIT, etc.). The financial analysts use the above valuation methods alternatively and/or jointly at their discretion. The assigned target price may differ from the fair value, as it also takes into account overall market/sector conditions, corporate/market events, and corporate specifics (i.e. holding discounts) reasonably considered to be possible drivers of the company s share price performance. These factors may also be assessed using the methodologies indicated above. Equity rating key: (long-term horizon: 12M) In its recommendations, Intesa Sanpaolo SpA uses an absolute rating system, which is not related to market performance and whose key is reported below: Equity rating key (long-term horizon: 12M) Long-term rating Definition BUY If the target price is 20% higher than the market price ADD If the target price is 10%-20% higher than the market price HOLD If the target price is 10% below or 10% above the market price REDUCE If the target price is 10%-20% lower than the market price SELL If the target price is 20% lower than the market price RATING SUSPENDED The investment rating and target price for this stock have been suspended as there is not a sufficient fundamental basis for determining an investment rating or target. The previous investment rating and target price, if any, are no longer in effect for this stock. NO RATING The company is or may be covered by the Research Department but no rating or target price is assigned either voluntarily or to comply with applicable regulations and/or firm policies in certain circumstances, including when Intesa Sanpaolo is acting in an advisory capacity in a merger or strategic transaction involving the company. TARGET PRICE The market price that the analyst believes the share may reach within a one-year time horizon MARKET PRICE Closing price on the day before the issue date of the report, as indicated on the first page, except where otherwise indicated Equity rating allocations (long-term horizon: 12M) Intesa Sanpaolo Research Distribution (at 1 February 2010) Number of companies subject to recommendations: 91 (**) BUY ADD HOLD REDUCE SELL Total Coverage % of which Intesa Sanpaolo s Clients % (*) (*) Companies on behalf of whom Intesa Sanpaolo and the other companies of the Intesa Sanpaolo Group have provided corporate and Investment banking services in the last 12 months; percentage of clients in each rating category. (**) The total number of companies covered is 104 Valuation methodology (short-term horizon: 3M) Our short-term investment ideas are based on ongoing special market situations, including among others: spreads between share categories; holding companies vs. subsidiaries; stub; control chain reshuffling; stressed capital situations; potential extraordinary deals (including capital increase/delisting/extraordinary dividends); and preys and predators. Investment ideas are presented either in relative terms (e.g. spread ordinary vs. savings; holding vs. subsidiaries) or in absolute terms (e.g. preys). The companies to which we assign short-term ratings are under regular coverage by our research analysts and, as such, are subject to fundamental analysis and long-term recommendations. The main differences attain to the time horizon considered (monthly vs. yearly) and definitions (shortterm long/short vs. long-term buy/sell ). Note that the short-term relative recommendations of these investment ideas may differ from our longterm recommendations. We monitor the monthly performance of our short-term investment ideas and follow them until their closure. Equity rating key (short-term horizon: 3M) Equity rating key (short-term horizon: 3M) Short-term rating LONG SHORT Definition Stock price expected to rise or outperform within three months from the time the rating was assigned due to a specific catalyst or event Stock price expected to fall or underperform within three months from the time the rating was assigned due to a specific catalyst or event Intesa Sanpaolo Research Department 8

9 Company specific disclosures Banca IMI discloses interests and conflicts of interest, as defined by: Articles 69-quater and 69-quinquies, of Consob Resolution No of , as subsequently amended and supplemented; the NYSE s Rule 472 and the NASD s Rule 2711; the FSA Policy Statement 04/06 Conflicts of Interest in Investment Research March 2004 and the Policy Statement 05/03 Implementation of Market Abuse Directive, March The Intesa Sanpaolo Group maintains procedures and organisational mechanisms (Information barriers) to professionally manage conflicts of interest in relation to investment research. We provide the following information on Intesa Sanpaolo Group s conflicts of interest: 1. The Intesa Sanpaolo Group has a conflict of interest inasmuch as it plans to solicit investment banking business or intends to seek compensation from the companies in the next three months. 2. AUTOGRILL: The Intesa Sanpaolo Group has made significant financing to AUTOGRILL and its parent and subsidiary companies. 3. BANCO POPOLARE: a) Banca IMI was Joint Bookrunner for BANCO POPOLARE Soc. Coop. in the bond issue of August 2009; b) The Intesa Sanpaolo Group has issued financial instruments linked to BANCO POPOLARE Soc. Coop.'s shares. 4. ENEL: a) The Intesa Sanpaolo Group has made significant financing to ENEL SpA and its parent and group companies; b) Banca IMI was Coordinator of the Pan-European Offering and Placement Manager for the Offering in Italy in the ENEL SpA's Bond Issue of February 2010; c) Banca IMI was Financial Advisor for ENEL SpA for the sale of Enel Rete Gas SpA's equity stake of September 2009; d) Banca IMI was Joint Global Coordinator, Joint Bookrunner and Guarantor for ENEL SpA in the Capital Increase of June 2009; e) Banca IMI was Independent Advisor for ENEL SpA for the sale of Enel Linee Alta Tensione Srl of April 2009; f) The Intesa Sanpaolo Group has issued financial instruments linked to ENEL SpA's shares. 5. FINMECCANICA: a) The Intesa Sanpaolo Group has made significant financing to FINMECCANICA SpA and its parent and group companies; b) Banca IMI was Joint Bookrunner for FINMECCANICA SpA in the eurobond issue of October GENERALI ASS: a) he Intesa Sanpaolo Group has an equity stake above 1% in ASSICURAZIONI GENERALI SpA.; b) The Intesa Sanpaolo Group has elected one member of the Board of Directors of ASSICURAZIONI GENERALI SpA.; c) The Intesa Sanpaolo Group has made significant financing to ASSICURAZIONI GENERALI SpA and its parent and subsidiary companies, and is one of its main financial lenders; d) ASSICURAZIONI GENERALI SpA has a significant equity stake in the Intesa Sanpaolo Group; e) The Intesa Sanpaolo Group has issued financial instruments linked to ASSICURAZIONI GENERALI SpA's shares. 7. MEDIOLANUM: The Intesa Sanpaolo Group has made significant financing to MEDIOLANUM SpA and its parent and subsidiary companies, and is one of its main financial lenders. 8. MONDO HE: The Intesa Sanpaolo Group is one of the main financial lenders of MONDO HOME ENTERTAINMENT SpA and its parent and group companies. 9. PIRELLI: a) The Intesa Sanpaolo Group has an equity stake above 1% in PIRELLI & C. SpA and in Camfin SpA that is PIRELLI & C. SpA's major shareholder; b) The Intesa Sanpaolo Group forms part of the shareholders agreements stipulated between PIRELLI & C. SpA's shareholders; c) The Intesa Sanpaolo Group has made significant financing to PIRELLI & C. SpA and its parent and subsidiary companies, and is one of its main financial lenders. 10. RCS MEDIAGROUP: a) The Intesa Sanpaolo Group has an equity stake above 5% in RCS MEDIAGROUP SpA; b) The Intesa Sanpaolo Group has elected one member of the Board of Directors and one member of the Executive Committee of RCS MEDIAGROUP SpA.; c) The Intesa Sanpaolo Group forms part of the shareholders agreements stipulated between RCS MEDIAGROUP SpA's shareholders; d) The Intesa Sanpaolo Group has made significant financing to RCS MEDIAGROUP SPA and its parent and subsidiary companies, and is one of its main financial lenders. 11. SOGEFI: The Intesa Sanpaolo Group is one of the main financial lenders of SOGEFI SpA and its parent and group companies. 12. TELECOM ITALIA: a) The Intesa Sanpaolo Group has an equity stake above 10% in TELCO SpA, the Company that has a controlling interest in TELECOM ITALIA SpA; b) The Intesa Sanpaolo Group has elected one member of the Board of Directors and one member of the Board of Statutory Auditors of TELCO SpA, and more member of the Board of Directors of TELECOM ITALIA SpA; c) The Intesa Sanpaolo Group forms part of the shareholders agreements stipulated between TELCO SpA's shareholders; d) The Intesa Sanpaolo Group has made significant financing to TELECOM ITALIA SpA and its parent and subsidiary companies, and is one of its main financial lenders; e) The Intesa Sanpaolo Group has issued financial instruments linked to TELECOM ITALIA SpA's shares. Intesa Sanpaolo Research Department 9

10 Intesa Sanpaolo Research Department Head of Research Gregorio De Felice Head of Equity & Credit Research Giampaolo Trasi Monica Bosio Luca Bacoccoli Laura Carmignani Sergio Ciaramella Manuela Meroni Gian Luca Pacini Bruno Permutti Fabio M. Picardi Roberto Ranieri Lorenzo Re Corporate Broking Research Alberto Francese Marta Caprini Serena Polini Research Production Anna Whatley Cinzia Bovina Bruce Marshall Annita Ricci Banca IMI SpA Piazzetta Giordano Dell Amore, Milan, Italy Tel: Banca IMI Securities Corp. 1 William Street New York, NY, USA Tel: (1) Banca IMI London Branch 90 Queen Street London EC4N 1SA, UK Tel Banca IMI Institutional Sales Nicola Maccario nicola.maccario@bancaimi.com Carlo Cavalieri carlo.cavalieri@bancaimi.com Francesca Guadagni francesca.guadagni@bancaimi.com Robert Meier robert.meier@bancaimi.com Daniela Stucchi daniela.stucchi@bancaimi.com Mark Wilson mark.wilson@bancaimi.com US Institutional Sales Stephane Ventilato Stephane.Ventilato@bancaimi.com Jack Del Duca DelDucaJ@bancaimius.com Barbara Leonardi LeonardiB@bancaimius.com Gregory Halvorsen gregory.halvorsen@bancaimi.com Sales Trading Roberto Gussoni roberto.gussoni@bancaimi.com Claudio Manes claudio.manes@bancaimi.com Adele Marchetti adele.marchetti@bancaimi.com Lorenzo Pennati lorenzo.pennati@bancaimi.com Equity Derivatives Institutional Sales Andrea Martini andrea.martini@bancaimi.com Emanuele Manini emanuele.manini@bancaimi.com Market Hub Brokerage & Execution Italian Equities - Sergio Francolini sergio.francolini@bancaimi.com Foreign Equities - Francesco Riccardi francesco.riccardi@bancaimi.com Market Hub Exchange Traded Derivatives Biagio Merola - Milan biagio.merola@bancaimi.com Market sales Giovanni Spotti giovanni.spotti@bancaimi.com Intesa Sanpaolo Research Department 10