Republic of Belarus: General Information

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2 Contents Republic of Belarus: General Information 3 Belagroprombank: General Information Belagroprombank: Financial Indicators. 14 Belagroprombank: International Business. 19 Contacts

3 Republic of Belarus: General Information

Republic of Belarus: overview Population Foreign trade turnover, 01.04.2015 Gold & Currency reserves, 01.05.2015 Credit ratings: S&P Moody s 9.5 mln USD 14.4 bn USD 4.6 bn B-/stab. Caa1/neg. Other 25.

4 Republic of Belarus: overview Population Foreign trade turnover, Gold & Currency reserves, Credit ratings: S&P Moody s 9.5 mln USD 14.4 bn USD 4.6 bn B-/stab. Caa1/neg. Other 25.8% Transport & Communications 7.9% Construction 10.4% Net taxes on products 12.1% 2014 GDP Structure USD 65.7 bn Agriculture, Hunting, Forestry & Fishing 7.7% Manufacturing 24% Wholesale & Retail Trade 12.1% Belarus has an open export oriented economy Natural resources: potash, rock salt, timber, oil & natural gas, granite, peat, dolomitic limestone, chalk, slate stone Refinancing rate since %p.a. 4 Sources: National Bank of Belarus, National Statistical Committee of Belarus

5 Belagroprombank: General Information

Belagroprombank s Overview Universal commercial bank 99% state-owned bank Government Agent on servicing State Programs Leading positions in banking sector of Belarus: #2 by authorized fund and equity

6 Belagroprombank s Overview Universal commercial bank 99% state-owned bank Government Agent on servicing State Programs Leading positions in banking sector of Belarus: #2 by authorized fund and equity #2 by total assets and retail deposits Second largest network: 7 local branches and 278 outlets * About corporate and 1.8 mln retail clients Credit rating: S&P В- (at sovereign level) The only Belarus corporate issuer on the international debt capital market Registered by IRS to meet FATCA requirements Key financials 2014 BYR bn 2014 USD mln Assets Equity Loans to customers Customer accounts Profit Tier 1 capital adequacy ratio, % Source: Data for 2014 (IFRS figures) The only bank in Belarus with in-depth knowledge of agriculture - the core export-oriented sector of Belarus economy demonstrating positive dynamics 6 * As of

7 History and Development Belagroprombank was created on the basis of Belarussian branch of Agrobank of USSR 1992 the Bank obtained general license to perform banking activities in foreign currency 1994 the Bank became a member of SWIFT international settlement system 1996 the Bank obtained the status of the Government Agent on serving state programs on financing agricultural sector of the economy Belagroprombank joined Reuters system JSC Belagroprombank was awarded with the title The Bank of the Year 2002 by The Banker magazine 2004 for the first time the Bank s financial statements were prepared in accordance with IFRS and audited by Deloitte and Touche Long-term rating of the Bank was assigned at CCC+ by Fitch Ratings 2005 the Bank joined Visa International payment system 2006 Fitch Ratings upgraded the Bank s rating to B- The Bank tapped international debt capital markets, the total volume of borrowings reached USD 340 mln 2007 Global Finance named JSC Belagroprombank The Best Bank in Belarus The Bank has opened its representative office in Milan, Italy Euromoney magazine awarded the Bank with Award for Excellence The Bank became a member of CICA (International Association of Agricultural Credit) 2008 Moody s assigned rating for the Bank for the first time For the second time Global Finance named JSC Belagroprombank The Best Bank in Belarus 2009 The Bank held conference on agroecotourism development in Belarus 2010 Belagroprombank was the first to issue 3 year USD 100 mln CLN The Bank was awarded with EUR STP Excellence Award by Deutsche Bank for the exceptional quality of payments The Bank became the member of MasterCard Worldwide Belagroprombank was the first among banks to implement quality management system ISO The Bank has celebrated the 20 th anniversary of performance in Belarus Deutsche Bank awarded Belagroprombank with EUR STP Excellence Award for the second time 2012 The Bank was honored by Commerzbank with STP Award 2011 for achieving the highest quality of payments 2013 for the second time the Bank was honored by Commerzbank AG with prestigious STP Award Belagroprombank raised the largest for the bank Syndicated Loan The Bank became the participant of the Moscow Exchange trading The quality management certificate against ISO 9001:2008 is confirmed by TÜV Thüringen certification authority 7

8 Belagroprombank s market positions Equity Corporate Loan Portfolio 18% 21% Assets Retail deposits 16% 17% 8 Source: National Bank of the Republic of Belarus Data as of

9 Governance Structure General Shareholders Meeting Supervisory Board Supervisory Board is headed by the Deputy Prime Minister of the Republic of Belarus In accordance with the best international practices, independent directors are members of the Supervisory Board Risk Committee Management Board Audit Committee Credit Committee Finance Committee Committees are established under the Management Board. Meetings are held on a regular basis Asset-Liability Management Committee Bad Loans Committee IT Committee 9

Belagroprombank s Group and its Branch Network Belagroprombank s

2015 7 Local Branches 278 Outlets Belagroprombank s subsidiaries The

enterprises consolidated in the financial statements 100% UE

leases) 100% UE «Agrobusinessconsult» (consulting) 95,87% JSC

10 Belagroprombank s Group and its Branch Network Belagroprombank s Branch Network as of Local Branches 278 Outlets Belagroprombank s subsidiaries The Bank is a parent company of a Group which consists of the following enterprises consolidated in the financial statements 100% UE «Ozeritskiy-Agro» (agriculture) 66,7% JSC «Agroleasing» (finance leases) 100% UE «Agrobusinessconsult» (consulting) 95,87% JSC «Turovschina» (agriculture) 10 Headquartered in Minsk Implementation of regional network optimisation strategy Representative office in Milan, Italy

11 Strategy The Development Program of Belagroprombank for Pursuing client-oriented policy both in retail and corporate business Active developing of international cooperation Goal-directed adopting of modern technologies Securing sustainable functioning and development of the Bank 11

12 Risk-Management Bank's risk management system is aimed at providing financial reliability, stable and secure functioning of the bank while achieving common strategic objectives of the Bank Risks Bank's risk management structure is headed by the General Meeting of Shareholders, the Supervisory Board and the Risk Committee of the Supervisory Board. Bank generates reports on consolidated basis for: activity effectiveness monitoring; risks (economic standards) level monitoring; ensuring information transparency (informing the National Bank of the Republic of Belarus, contractors and other stakeholders). Strategic Operational Credit Pricing Currency Liquidity Interest Constant risk monitoring by: Structural divisions Banking risks division Internal audit division, External audit Responsible for the risks generated by them in the normal course of business Carry out independent risk management functions Conducts an independent audit of the risk management system functioning Reputation 12

13 Business Overview Corporate banking Retail banking International operations About clients The clients are the large and medium-sized entities in the agricultural sector and manufacturing companies Total corporate loan portfolio of about USD 4.5 bn (in equivalent) State lending programs for the agricultural sector Wide range of services includes: Lending, leasing, factoring operations Credit support of trade operations Advisory services Providing credit support to the subjects of agroecotourism About 1.8 mln clients Area of strategic importance and development for the Bank Total retail loan portfolio of about USD 140 mln (in equivalent) Product offering includes: Multi-currency deposits Money transfers Foreign currency exchange Payment cards (BelCart, Visa, Maestro, MasterCard) Payments services SMS-banking Internet-banking Consumer lending, car lending, mortgages Selling of gold, platinum and silver bullions Top-priorities of the Bank: Increase the scale of business via raising funds from international markets Involve new markets to diversify liabilities structure More than USD 5.5 bn raised since 2005 by means of trade finance, capital markets transactions, forfaiting etc. About USD 820 mln raised since 2006 by means of syndicated loans and issuing of credit notes, etc. Cooperation with more than 100 financial institutions from 30 countries Recognition by 18 ECAs (SACE, Hermes, KUKE, Coface, OeKB and others) Representative office in Milan, Italy 13 Data for 2014 (IFRS figures)

14 Belagroprombank: Financial Indicators

Аssets Total assets Assets structure, % 75.3 77.7 Loans to customers (70%) 56.5 Investment in securities (14%) 28.3 45.6 Cash and balances with the National Bank of the Republic of Belarus (6%) 70% 9.

15 Аssets Total assets Assets structure, % Loans to customers (70%) 56.5 Investment in securities (14%) Cash and balances with the National Bank of the Republic of Belarus (6%) 70% BYR trillion USD bn. (in eqv.) Property, equipment and intangible assets (6%) Derivative financial instruments (2%) 2% 2% 6% 6% 14% Other assets (2%) Major part of assets formed by loans to clients (mostly to corporates) 100% of the loan portfolio is secured 15 Data for 2014 (IFRS figures)

16 Loan Portfolio Breakdown Sector breakdown Agriculture 42% Manufacturing 42% Other 3% Construction 1% Trade 9% Individuals 3% Bank has a high-quality and diversified loan portfolio with traditionally low level of NPL Agriculture s portion in the total loan portfolio is decreasing and amounts to 42%. Agriculture itself includes both primary agricultural production of all types and its further processing NPL Loans structure by collateral Share of NPL in total loans, % Provisions against losses/total loans, % Conservative credit policy on the back of stable low NPL level 15 (as of 01.05) Property & inventory 30% Cash 0.5% Other 4% Guarantees of the government & local authorities 32% Real estate 15.5% Lien over property & receivables 18% 16 Data for 2014 (IFRS figures)

Capital and Sources of Funding Growth of share capital Structure of liabilities, % BYR trillion 28.5 28.5 USD bn (in eqv.) 20.9 17.1 5.6 1.9 2.1 2.4 3.0 2.

17 Capital and Sources of Funding Growth of share capital Structure of liabilities, % BYR trillion USD bn (in eqv.) Due to banks & the National Bank 20% Other 1% Debt securities issued 8% Customer accounts 71% The capital/assets ratio provides significant capability to cover unforeseen loan losses in addition to existing reserves Capital adequacy ratio of Belagroprombank conforms to Basel standards and meets all requirements of the National Bank of the Republic of Belarus 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 Capital adequacy ratio, % According to the standards set by Basel Accords capital adequacy ratio must be at least 8% 17 Data for 2014 (IFRS figures)

18 Income and Expenses Interest Income and Expenses Dynamics, BYR trn Operating Income and Expenses Dynamics, BYR trn Interest income Interest expenses Net interest income Operational income Operational expenses Profit before tax Operating Income Breakdown Operating Expenses Breakdown Other non-interest income 30% Net fee & commission income 21% BYR 5.1 trn Net interest income * 49% Other 29% Contributions to deposits protection fund 8% Utilities, rentals & maintenance 4% Depreciation and amortization 11% BYR 3.2 trn Personnel 37% Social security contributions 11% 18 * After allowance for impairment of interest bearing assets and effect of initial recognition Data for 2014 (IFRS figures)

19 Belagroprombank: International Business

20 Belagroprombank s position in the world According to magazine The Banker JSC Belagroprombank Ranking by Equity (July 2014) 516 Top 1000 World Banks 18 among 25 largest banks of Central and Eastern Europe Top 25: Central & Eastern Europe 2 among Belarusian banks Top 1000 by Country 20

21 International Business International markets activities Belagroprombank has been accepted by 18 ECAs for participation in co-financing of applicable transactions Belagroprombank cooperates with more than 100 banks from 30 countries of the world Bank provides all available instruments for project financing, precisely tailored to fit the individual requirements of each client Our achievements: Bank became Belarusian financial market pioneer in countries such as Italy and Hungary, concluding debut deals for Belarus. Belagroprombank was the first among Belarusian banks to sign a loan agreement with a non-bank financial institution resided in the United States - Deere Credit, Inc. Bank implemented a unique deal for the Republic of Belarus denominated in Japanese yen. Bank implemented a significant deal raising a loan under the cover of Euler Hermes totaling EUR 100 million for 10-year term without the guarantee of the Government of the Republic of Belarus. Insurance cover was provided outside the country limit for Belarus and significantly exceeded it. Bank carried out raising credit facility with Israel s ASHR A insurance cover for a 7-year term. 21

22 International Funding Track Record Syndicated Loans EUR 30 mln 1 year + 1 JSC VTB Bank & VTB Bank Europe plc August 2006 In 2006 Belagroprombank launched its debut syndication In August 2007 the Syndicated Loan was successfully extended. USD 43.5 mln 1 year Club style November 2009 The first and the only deal effected in the Belarusian banking sector in 2009 Belagroprombank was among very few CIS FI to raise syndicated loan under challenging 2009 RUB 1 bn 1 year JSC VTB Bank June 2007 USD 40 mln 1 year + 1 Commerzbank AG Banco Finantia SA UniCredit Group February 2008 USD 55 mln 1 year + 1 Banco Finantia SA Credit Suisse Intesa SanPaolo September 2008 In June 2007 Belagroprombank raised a Russian Rouble syndicated facility the first of its kind for Belarusian banks Named Deal of the Year by Trade & Forfaiting Review Magazine The first deal in Belarus in 2008 in challenging market conditions For the first time in Belarus the leading Italian banking group UniCredit acted as MLA Intesa Sanpaolo SpA, one of the leading Italian banks, enjoys MLA title in Belarus for the first time More than 100% oversubscription USD 63.5 mln 1 year + 1 JSC VTB Bank OJSC ALFA-BANK VTB Bank (Deutschland) AG October 2013 USD 70 mln EUR 29 mln 1 year JSC VTB Bank VTB Bank (Deutschland) AG October 2014 In October 2013 Belagroprombank raised USD 63.5 mln syndicated facility for 1 year + option of extension for the next 1 year period In October 2014 was successfully extended The largest Syndicated Facility for the Bank The Loan is supported by Russian and European banks despite USA&EU sanctions towards a number of Russian banks 22

23 International Funding Track Record Notes issue EUR 70 mln 1 year MLA VTB Bank Europe plc & Banco Finantia SA In December 2006 Belagroprombank was the first Belarusian bank to raise funds via notes issuance In December 2007 Belagroprombank has successfully redeemed its debut EUR 70 mln LRN issue December 2006 USD 100 mln 3 years MLA Investment Company Troika Dialog & The Royal Bank of Scotland plc November 2010 In November 2010 Belagroprombank completed placement of its USD 100 mln three-year issue The issue was priced at par with a coupon of 9.95% p.a. and listed on the Frankfurt Stock Exchange Belagroprombank is the only bank in Belarus to price internationally distributed notes In November 2013 in due time Belagroprombank has successfully redeemed its USD 100 mln three-year LPN issue 23

24 Awards and Successes Bank of the Year 2002 in Belarus Gold medal in National Competition Brand of the year 2006 Award for Excellence 2007 Best Bank in Belarus 2007 STP Award 2011, 2012 Cbonds Awards 2013 Deal of the year 2007 Syndicated Loan RUB 1 bn Deal of the year 2007 Best Bank in Belarus 2008 For exceptional quality of payment messages, 2009, 2010 Deal of the Year in 2009 Brand of the year

25 Contacts Mr. Siarhei P. CHUHAI Deputy Chairman of the Board Tel.: Mob.: Fax: s.chuhai@belapb.by Ms. Natallia P. SVIRSKAYA Head of International Business Department Tel.: Fax: n.svirskaya@belapb.by Ms. Marina V. BURGUTO International Business Department Head of Financial Institutions Tel.: Fax: m.burguto@belapb.by Ms. Julia I. ALEXEEVA International Business Department Head of Debt Capital Markets Tel.: Fax: j.alexeeva@belapb.by 25

Republic of Belarus: General Information

July 2016 Contents Republic of Belarus: General Information 3 Belagroprombank: General Information...... 5 Belagroprombank: Financial Indicators. 14 Belagroprombank: International Business. 19 Contacts...........