Leasing Industry Results in 2014

Leasing Industry Results in 2014 Polish Leasing Association Press Conference 2nd Feb. 2015 Polish Confederation Lewiatan ul. Zbyszka Cybulskiego 3 Warszawa

Leasing Market

Assets financed by leasing companies Financing in total 24 348 + 27,4% + 7,8% + 21,3% 31 015 11 805 10 952 Financed items 35 300 I - IX X-XII I-XII 42 820 0,9% 2,9% Passenger vehicles, delivery vehicles and trucks up to 3,5 tons 33,1% 26,7% 36,4% Heavy transport Machinery and other devices including IT Others Real estate 2013 2014 PLN mln Comments: After 13% growth obtained last year on the leasing market, in 2014 we can observe a further dynamic development of the market, with gradually decreasing dynamics: 45,3% y/y for Q1, 21,1% y/y for Q2, 19,0% y/y for Q3, 7,8% y/y for Q4. Value of assets financed last year exceeded the highest result ever observed in 2013. The Q1 dynamics increased due to individual factors (mainly the cargo partition but also derogatory list for trucks with Euro 5 norm). Lack of these factors reduced the growth rate for the value of mobile assets financed by leasing companies in the following quarters. The structure of the total financing market remains quite balanced (light vehicles, machinery, heavy transport), with significantly lower than in Western Europe involvement of real estate financing.

Assets financed with leasing Financing with leasing Comments: + 26,2% + 6,9% + 20,3% 36 342 PLN mln After 12.4% result for 2013, the dynamics of assets financed with leasing amounted to 20.3% in 2014. 20 894 26 370 30 219 2013 2014 Leasing is still the main tool of investment financing by leasing companies. 84.9% of all assets were financed with leasing in 2014, which is slightly less than in 2013, when this share amounted to 85.6%. 9 325 9 972 For this reason, the dynamics of changes on the leasing market and their nature are parallel to the changes observed on the whole market of asset financing. I - IX X-XII I-XII Items financed with leasing 1,0% 3,4% Passenger vehicles, delivery vehicles and trucks up to 3.5 tons Heavy transport After a very good first quarter with dynamics amounting to 45.6%, we have observed a slowdown in market growth reaching 6.9% in Q42014. Structure of leasing market is characterized by a greater share of light vehicles and comparable shares of heavy transport and machinery. 25,7% 41,2% Machines and other devices including IT Others 28,7% Real estate

Assets financed with loans Financing with loans + 34,5% + 12,7% + 27,5% 6 478 4 645 5 080 3 454 1 626 1 833 2013 2014 PLN mln Comments: High growth rate of assets financed with loan is maintained: 27.5% in 2014 after 16.9% growth recorded in 2013. Loan market did not slow down in 2014, mainly due to additional funds for agricultural investments from the 2007-2013 EU perspective. Such situation resulted from the fact that the agricultural machines with 64.0% share in the machines financed with the loan (and 46.9% share in the assets financed with loans) are the main fixed asset financed by loans. Due to that the loan finances 35.0% of the total machinery production in leasing companies. I - IX X-XII I-XII Items financed with loans We can observe a gradually increasing share of loans in financing movable assets by leasing companies: from 8.3% n 2010 and 10.4% in 2011 to 14.8% in 2013 and 15.6% in 2014. 0,5% 0,2% Passenger vehicles, delivery vehicles trucks up to 3.5 tons 9,6% Heavy transport In H1 2014 this share amounted to 14.4% (15.6% for Q2), 14.8% in 2013, 14.1% in 2012, 10.4% in 2011 and even 8.3% in 2010. 74,3% 15,4% Machines and other devices including IT Others Purchase of machinery is still the main type of investments financed with loan (73.2% share in 2014), but their share is gradually declining: from 75.4% in 2013 and even 85.1% in 2012. Real estate It is a result of the growing popularity of loans in vehicles financing. Even in 2012, vehicles constituted 10.3% of total production in the loan, 21.9% in 2013 and 23.7% in 2014. It is mainly due to light vehicles financing which grew of 86.0%.

Trends in groups financing in total Passenger, delivery vehicles and trucks up to 3.5 tons Heavy transport Machines and other appliances including IT + 39% + 13% + 17% + 29% - 24% Comments: Others Real estate Light vehicles - the main drive in the development of the leasing market in 2014. High annual dynamics of the segment mainly due to first quarter when financing of light vehicles grew of 79.0% owing to cargo partition. 15 596 14 159 A high growth rate for light vehicles was maintained in following quarters, which resulted from the favorable provisions for the leasing of cars in the premium segment. 11 222 4 390 12 067 11 415 3 707 10 067 3 392 3 516 2 983 3 427 X - XII + 25% - 13% + 9% - 12% + 22% I - IX + 45% + 27% + 20% + 43% - 46% 1 630 7 706 11 206 6 640 8 431 8 675 10 451 314 404 1 247 536 80 71 653 233 332 1 095 594 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 I - IX X - XII Heavy transport financing in the first months of 2014 was driven by trucks with Euro 5 standard from the socalled derogatory list. High dynamics of financing maintained till the end of Q3 despite difficult environment. The inhibition of growth within trucks financing in Q4 2014 results from the growing base of 2013, when we observed a massive purchases of new vehicles within Euro 5. Machinery - steady growth due to high use of production capacity in companies, recovery of the construction industry (52% growth of building machinery financing) and EU funds for agriculture. Significant recovery of the real estate market in Q4 2014, when 52.4% of the total production was financed. It reduced the annual drop to -23.5% from -45.7% repoted after Q3 2014.

Investment financing leasing vs investment credit 80 70 60 50 40 30 20 10 0 16,2% 37,8 43,9 Outstanding porfolio - equipment financing change to the previous state 62,5 56,5 52,4 52,4 53,4 53,3 48,4 47,7 47,3 47,8 48,0 45,4 9,1% 10,7% 5,2% 10,2% -1,4% -0,9%-3,9% 0,5% -0,1% 2,0% -0,3% 6,0% 68,5 9,5% 25% 20% 15% 10% 5% 0% -5% -10% 90 80 70 60 50 40 30 20 10 0 Outstanding porfolio - total financing change to the previous state 76,1 70,6 61,1 60,8 61,5 62,1 64,5 56,6 56,5 54,9 53,4 55,3 55,9 49,8 9,4% 9,4% 13,7% 3,6% 3,9% 7,9% 0,9% 1,3% -2,8% 1,8% -2,8% -0,2% -0,5% 0,9% 25% 20% 15% 10% 5% 0% -5% 100 90 80 70 60 50 40 30 20 10 0 Investment loans granted to companies by banks [bln PLN] Deposits/loans index for companies 92,2 bln 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Comments: The total value of active portfolio at the end of 2014 amounting to PLN 76.1 billion (PLN 68.5 billion for movables and PLN 7.6 billion for real estate) is comparable with the value of the balance within investment loans granted by banks to companies (PLN 92.2 billion as of 31.12.2014). Leasing is still the main, next to the loan, external source of investment financing in the economy. The value of active portfolio in the past 12 months has increased by 18.0%, increasing within this period by PLN 11.6 billion. Data provided by the Polish National Bank and concerning money supply indicates a progressive improvement of the dynamics within the lending activity of banks in the area of investments. Within the past 12 months the balance of investment loans in banks has increased by 9.9%.

Results of Evaluation of Economic Situation

Evaluation of leasing industry economic situation 4Q / 3Q 1Q / 4Q Employment - number of employees and associates 30% 40% 30% 70% 30% Significant drop Portfolio quality- number of dissolved contracts 20% 70% 10% 10% 80% 10% Drop Market activity number of new applications 10% 20% 60% 10% 70% 20% 10% No changes Growth New production value of concluded contracts 10% 20% 30% 40% 70% 10% 20% Significant growth Comments: The study concerns the assessment of the economic situation and is conducted among the people responsible for sale in leasing companies associated in the Polish Leasing Association. The data refer to the evaluation of the passing period, and trends for the next quarter. The percent amounts determine what share of the surveyed companies have chosen a particular answer. The surveyed companies expect stabilization of the quality of the leasing portfolio, a gradual increase of employment and the negative dynamics for the new production in Q1 2015.

New production predicted nature of changes within the groups Passenger, delivery vehicles and trucks up to 3.5 tons 20% 30% 20% 20% 10% Heavy transport 10% 30% 20% 30% 10% Significant drop Drop No changes Growth Machines and other devices including IT 30% 20% 50% Significant growth Not applicable Real estate 50% 50% Comments: The study determines how, by representatives of leasing companies, will change the value of financed assets in Q1 comparing to Q4 2014. The predicted nature of the changes was specified by main groups of fixed assets financed by the leasing industry. The surveyed companies expect in Q1 2015 lower level of financing within light vehicles and stabilisation of the situation in groups of fixed assets connected with heavy transport and real estate. The best perspectives for the growth are within machinery and IT equipment financing.

Macroeconomic Surrounding

Today we have a very favorable structure of economic growth Q2 2013 Q2 2014 Q3 2014 GDP: 0,8% 3,5% 3,3% The contribution of domestic demand: -1,5 pp. +5,4 pp. +4,9 pp. The net contribution of export: 2,3 pp. -1,9 pp. -1,6 pp. Private consumption: 0,1% r/r 3,0 r/r 3,2% r/r Investments: -3,3% r/r 8,7% r/r 9,9% r/r Export: 3,3% r/r 4,8% r/r 3,8% r/r Comments: Maintained solid growth in the third quarter, in line with the current potential of 3.4% in the last two quarters in seasonally adjusted conditions. Domestic demand increased in the third quarter by 4.9% y / y. Thanks to a very favorable structure of economic growth, Poland is now incomparably better prepared for external shocks than a year ago.

because the Polish economy has undergone a "right" path of development step-by-step Model revival in Poland: : 1) Growth of export 2) the growth of industrial production (first in export sector) 3) ) increase in production on the domestic market due to the revival of domestic demand (including private consumption) Revival on the leasing market 4) ) growth of business investment and improvement in the labor market in response to the present demand Comments: The economy in the last two years has been developing in accordance with the assumed scenario, allowing for GDP growth and increase of investment activity of companies. It was also a major factor in the development of the leasing market.

Recovery in domestic demand supported with the labour market data assessed with the level of unemployment 15 14 13 12 11 10 Rate of registered unemployment [%] by Central Statistical Office Unemployment rate by BAEL [%, adjusted seasonally] 10,6 spadku stopy 11,5 Comments: The improvement in the labor market is proved by gradually decreasing rate of the registered unemployment and the dynamics of the number of the unemployed. 9 8 The growth of annual drop of unemployment rate to 1.9 pp. in December. 7 6 01-08 05-08 09-08 01-09 05-09 09-09 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 7,9 It's all at quite a difficult economic environment. The decline in the unemployment rate exceeds the regular seasonal pattern. Unemployment in December rose by 0.1 percentage points with an average score of 0.5 percentage points for the previous four years. 40 30 29,5 Number of the unemployed dynamics [%, y/y] As a result, the unemployment rate in December was of 1.9 percentage points lower than last year. 20 10 8,8 It promises to maintain consumption growth in the coming quarters. 0 We expect that the unemployment rate at the end of 2015 will decrease to 10.6% from 11.5% at the end of 2014.. -10 333 thousand less of the unemployed within the last 12 months -20-15,4-30 01-08 05-08 09-08 01-09 05-09 09-09 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14

and the data on employment in the corporate sector. Stabilization of improvement in employment in the coming quarters. 5 600 5 550 4,1 Employment in the corporate sector[left axis, in thousands of people] Dynamics of employment [%, y/y, right axis] 5,0 4,0 Employment subindex in PMI research for industrial sector 5 500 3,0 no changes as with the previous month, seasonally modified Faster pace of growth 5 450 5 400 5 350 Growth of employment in the sector of 10+ companies 58 thousand persons in thr last 12 months decrease of 2 thousand only in Deecember 11,7 - thousand m/m for the last four years. 2,0 1,1 1,0 5 300 0,0 5 250-1,0 5 200 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 -1,0-2,0 Faster pace of decrease Comments: Index of employment prognosis [according to Manpower, data adjusted seasonally] A gradual increase in employment in enterprises is observed. There were 263 thousand of new posts in the first three quarters of 2014 within the whole economy. 1% y/y employment growth will continue in firms in 2015 as well as real wage growth at the level of circa 4%. Available studies indicate that the upward trend in employment in the fourth quarter of 2014 and in 2015 (Manpower, PMI, Randstad, CBOS). IT is not the only employee market any more.

What happened that consumption becomes permanent and increasingly stronger driver of economic growth in Poland 15,0 13,0 11,0 9,0 7,0 5,0 3,0 Real payroll fund (business sector) [%, y/y] Real salary growth [%, y/y] Real payroll fund in companies 10+ has grown of 4.7% y/y within the last 5 months 5,9 Comments: Employment growth is accompanied by approx. 4 percent. wage growth, the highest in six years. As a result, we maintain a clear increase in real payroll fund. 1,0-1,0-3,0-5,0 01-08 05-08 09-08 01-09 05-09 09-09 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 - 2,1 Retail sale has been growing of circa 3% y/y within the last 5 months With a projected further growth of wages at approx. 4.5% in 2015, we may expect steady growth in consumer demand. The data show the scale of consumer purchases below the real wage growth. This suggests an increase in savings, which can be seen in the increasing dynamics of deposits for individuals: 8.9% y / y in the whole 2014. Retail sales slowed down from 5.1% y / y in the second quarter. To 3.0% y / y in the second half of 2014. I expect private consumption in 2015 will accelerate to 3.5% after 3.0% in 2014.

PMI clear improvement influencing current performance of industrial production. Comments: PMI at the end of 2014. shows that the recovery in the Polish manufacturing sector has been maintained: 52.8 p. vs. 53.2 in November. Such a result is consistent with GDP growth of 3.2% in the fourth quarter. PMI in Q4 grew to 52.4 p. from 49.3 in Q3. It is much over the historical average at the level of 50.1 p. Very favorable structure of PMI a significant increase in current production, new orders and employment. Higher production (55.0 pts.) is justified by the largest for nine months number of new orders. PMI employment sub-index above 50 points since August 2013. Businesses treated downturn in the middle of the year as a temporary phenomenon. A marked improvement in the PMI with a clear influence on the results of the December industry. Production in Q4 accelerated to 2.3% from 1.6% in Q3 resulting in the 3.3% growth in entire 2014. December growth owing to export sectors. PMI readings point to the acceleration of industrial production to approx. 5.0% in the first quarter of 2015. Industrial production growth of approx. 6% throughout 2015.

The price of crude oil as the main determinants of economic trends in the coming quarters. Factors affecting the price of oil Oversupply due to the shale revolution, the abolition of export bans in the United States and maintaining high supply by OPEC. 2 million b / d 1 year 28th Jan 2015 Stronger dollar The slowdown in the global economy and more efficient technologies. Increase in demand for oil by only 200 thousand. b / d in 2015 Geopolitical factors (blow at Russia and Iran, reducing the scale of investment in shale by Riyadh) The decline in the price of Brent crude oil of 55% in the past 12 months. This is the lowest result for six years. The low price of oil will remain for several quarters. Feb March Apr May June July Aug Sept Oct Nov Dec Jan Technological advance (shale), which significantly reduces costs. $ 40 / b in the game. Change of series 24-hour interval The incentive for economic growth in the countries importing oil and gas. It gives additional 0.8 pp. for the world's GDP. Serious economic problems for countries such as Russia, Iran, Venezuela.

Russia - plunging into deep recession Russia - key factors The negative impact of western countries sanctions: 4.8% of GDP in 2015. Oil and gas export constitutes 2/3 of total exports and the cover of half of the Russian budget. The budget balanced by oil price at approx. $ 100 / b. Decline in real incomes of the population: 4-5% in 2015. Inflation will accelerate to 15% from 11.4% in 2014. 1 year 28th Jan 2015 Currency collapse: the increase of the USD / RUB rate by 95% over the past 12 months. Interest rates at 17% (from 5.5% at the beginning of the year) means the credit crunch. (130 mld $ wymagalne w 2015 roku). The decline in foreign reserves in 2014 from $ 510 billion to $ 389 billion, while foreign debt of the private sector at the level of $ 640 billion (130 billion dollars due in 2015). Feb March Apr May June July Aug Sept Oct Nov Dec Jan 24-hour interval Capital flight: $ 152 billion in 2014.. Economic recession in Russia: the decline in GDP of more than 5%. Inhibition of the recession in Ukraine: from -7.5% to -4.5 2014% in 2015. Limited impact on Poland due to the decline in the importance of trade in Russia (sixth trade partner with 4.3% share) and Ukraine (0.9% share).

The Euro zone economy - a scenario of laborious rebound GDP dynamics adjusted seasonally [%, y/y] Euro zone 60 55 50 59,0 51,0 45 Stable rate of economic growth in the Euro zone maintained. 40 35 30 33,5 44,0 PMI for industry in Euro zone 12 9,9 10 8 6 4 2 0-2 -4 Dynamics of industrial production in Euro zone [y/y] 2,8-0,4-3,1 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 Comments: Low level of economic activity: the economic growth will accelarate from 0.8% in 2014 to 1.1% in 2015. Additional printing of money (ie. quantitative easing) because of the threat of deflation. Main economic indicators point to a gradual recovery. December PMI for industry rose to 50.6 points. from 50.1 in November, and for services to 51.6 points. from 51.1 points. a month earlier. Preliminary data for January indicate a further improvement in PMI.

Germany - growth in 2015 slightly lower than previously expected, but still decent 120 15 115 110 105 100 95 90 85 80 75 84,6 Ifo index left axis Dynamics of German industrial production [y/y] - right axis 3,1-0,5 10 5 106,7 0-5 -10-15 -20-25 Comments: Main economic indicators of the German economy (Ifo, ZEW, PMI) point to the acceleration in Q4 2014. PMI for industry rose to 51.2 points. from 49.5 in November. PMI for services maintained at 52.1 points. PMI of German industrial sector Germany's economic growth will accelerate in 2015 to 1.5% from 1.4% last year. Weak Euro and lower energy prices will help Germany. Balanced budget for the first time in 45 years.

Foreign trade - long-term determinants of economic development and the main factor for repositioning Poland among countries in the region. 1 000 2,0 50 500 0-500 Trade surplus for 10 months of 2014 at the level of $ 903 mln according to National Bank of Poland 0,1 0,0-1,4-2,0-96 40 30 20 10-1 000-4,0 0 2,3 4,7-1 500 Trade turnover balance (EUR mln) left axis -2 000 Current account balance of 12 months (%GDP) right axis Trade turnover balance of 12 months (%GDP) right axis -2 500 01-08 05-08 09-08 01-09 05-09 09-09 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 -6,0-8,0-10,0-10 -20-30 -40 01-08 05-08 09-08 01-09 05-09 09-09 01-10 05-10 09-10 01-11 05-11 09-11 01-12 05-12 09-12 01-13 05-13 09-13 01-14 05-14 09-14 Export dynamics [%, y/y, according to EUR] Import dynamics [%, y/y, according to EUR] Comments: Export from Poland 11/2014 01-11/2014 2014 (P) EUR mln dynamics EUR mln dynamics dynamics Export in total 14 380,20 4,8% 150 466 4,8% 5,6% Developed countries 12 174,50 8,1% 126 210 7,2% 7,5% Including EU 11 193,10 7,5% 116 011 7,5% Including Euro zone 7 776,60 9,8% 80 698 8,9% Developing countries 1 234,50 12,1% 13 071 6,0% 15,0% Eastern-Central Europe 971,20-21,8% 11 185-16,9% -19,3% Including Russia 543,40-18,7% 6 539-13,5% -20,0% Including Ukraine 269,60-29,2% 2 886-27,3% -25,0% Exporters impress in difficult conditions. The collapse of the trade to the East compensated with sale to developed countries. This year's export growth similar to the original forecast. In 2015, growth in exports is expected to remain at the level of 6-7%.

Companies will continue to invest 40 35 30 25 20 15 14,8% 3,2% 2,6% 17,8% 13,3% Investments of companies up to 50 employees [PLN bln] left axis Real dynamics of investment y/y right axis 20% 16,3% 15,8% 15% 13,5% 12,3% 12,9% 9,3% 5,2% 10% 3,9% 5% 1,7% - 1,2% - 1,6% 0% Comment: Significant increase of investments in economy for the first three quarters of 2014: + 9.8%. Expected result for the entire 2014 at the level of 9.1%. 10 5-10,0% -5% -10% Very strong investments of companies over 50 employees. 0 86 84 82 80 78 76 74 72 IIIQ 2010 IVQ 2010 IQ 2011 IIQ 2011 IIIQ 2011 IVQ 2011 IQ 2012 IIQ 2012 IIIQ 2012 IVQ 2012 IQ 2013 IIQ 2013 IIIQ 2013 IVQ 2013 IQ 2014 Average level of production capacity utilization[%] data not udjusted seasonally left axis IIQ 2014 IIIQ 2014 9,9 81,6-15% Gross expenditures for fixed assets (investments) [%, y/y] right axis 15 Production capacity utilization at the end of Q4 2014 much above the long-term average 70 IQ 2008 IIIQ 2008 IQ 2009 IIIQ 2009 IQ 2010 IIIQ 2010 IQ 2011 IIIQ 2011 IQ 2012 IIIQ 2012 IQ 2013 IIIQ 2013 IQ 2014 IIIQ 2014 20 10 5 0-5 -10-15 EU 2014-2020 perspective has been implemented after months of expectations: Brussels approved most of the programs, competitions for the first national program have started. Approval as a whole in the first quarter of 2015. 2015 - the last year of spending of the previous perspective plus the advance spending within the new perspective in the second half of the year. The total increase of investments in economy in 2015: 8.4% below the growth for 2014 years. Investments from a new EU perspective mainly in 2016.

Moderate acceleration of Poland economic growth in 2015 Strong domestic demand with consumer spending and investments of companies Further improvement of the economic situation in the Euro zone with recession in Ukraine and Russia. Additional fiscal stimulus (because we have an election year and announced extra government spending), and low oil prices is the combined effect of 1.0-1.5 percentage points of GDP Start of funds utilization from the new 2014-2020 EU perspective by the end of 2015 Economic growth in 2015 will accelerate to 3.7% from 3.3% in 2014. The second half of 2015 better than the first one. Current market consensus of 3.3%

Forecast of the main macroeconomic indicators for 2014 and 2015 Indicator 2014 2015 GDP 3,3% 3,7% Private consumption 3,0% 3,5% Investments 9,4% 8,4% Industrial production 3,2% 6,0% Registered unemployment rate (at the end of the year) 11,5% 10,6% Export (EUR) 5,2% 6-7% Reference rate of Polish National Bank (at the end of the year) 2,00% 1,50%

Prognosis for Leasing Industry

Forecasting of results financing in total Main forecast assumptions: Total assets financed by leasing companies 2014 2015 (P) change 2015/2014 Vehicles 26 464 28 550 7,9% Delivery Passenger Cars 15 596 16 599 6,4% Trucks 10 545 11 596 10,0% Other vehicles 322 355 10,0% Machines 13 553 16 024 18,2% IT 605 703 16,1% Planes, ships, railway 548 535-2,2% Other movables 404 394-2,4% Movables total number 41 573 46 206 11,1% Real Estate 1 247 1 429 14,6% Leasing altogether 42 820 47 635 11,2% The dynamics of the leasing market in line with the expected increase in private investment. Stable and sustainable economic growth will support investment activities of companies. This will be especially true for the financing of machinery and vehicles in the second half of 2015. Significant influence of the cargo partition effect on the results of Q1 2015 in the financing of delivery passenger cars. We assume that in 2015 the number of registrations of new cars will remain at the level of 2014. Acceleration within delivery passenger cars in the second half of 2015. Further good results of car lease in the premium segment. Expected stabilization on TRK market in Q1 2015 due to the base of 2013 with a high number of registrations of new Euro 5 from derogatory list. Gradual upturn in the Euro zone, especially in Germany, will help in subsequent quarters. Continuation of reflection on the construction machinery market, supported since H2 with the advance spending of money for a new EU perspective. Investment of companies in the machines will be forced by high levels of production capacity utilization. Significantly lower level of agricultural machinery financing in the first half of 2015 due to the exhaustion of the EU funds from the perspective of 2007-2013. The expected rebound in the fourth quarter of 2015. Slight rebound on the real estate market. Further diversification of the loan market. We estimate that the share of agricultural machinery in the financing of movables with loans will decrease to 42.8% from 46.9% in 2014.

Forecasting of results leasing vs loans Assets financed with leasing Assets financed with loans 2014 2015 (P) change 2015/2014 Vehicles 24 926 26 805 7,5% Passenger Delivery Cars 14 972 15 900 6,2% Trucks 9 665 10 588 9,6% Other vehicles 289 318 10,0% Machines 8 809 10 745 22,0% IT 539 603 12,0% Planes, ships, railway 463 491 6,1% Other movables 370 352-4,7% Movables total number 35 106 38 997 11,1% Real Estate 1 236 1 414 14,4% Leasing altogether 36 342 40 411 11,2% 2014 2015 (P) change 2015/2014 Vehicles 1 538 1 744 13,4% Pasenger Delivery Cars 624 699 12,0% Trucks 880 1 008 14,5% Other vehicles 33 37 10,0% Machines 4 745 5 279 11,3% IT 66 99 49,6% Planes, ships, railway 85 44-47,7% Other movables 34 42 23,2% Movables total number 6 467 7 209 11,5% Real Estate 11 15 32,2% Loans altogether 6 478 7 224 11,5%

Appendix

Total number of assets financed by leasing companies I-IX 2013 I-IX 2014 I-III 14 / I-III 13 X-XII 2013 X-XII 2014 X-XII 14 / X-XII 13 I-XII 2013 I-XII 2014 Vehicles 13 839 19 178 38,6% 6 882 7 285 5,9% 20 721 26 464 27,7% Light vehicles 7 706 11 206 45,4% 3 516 4 390 24,9% 11 222 15 596 39,0% Trucks 5 940 7 685 29,4% 3 257 2 860-12,2% 9 197 10 545 14,7% Other vehicles 193 287 48,5% 109 35-68,0% 303 322 6,4% Machines 8 279 10 029 21,1% 3 232 3 525 9,1% 11 510 13 553 17,7% IT 396 422 6,7% 160 183 14,2% 556 605 8,8% Planes, ships, railway 507 459-9,4% 61 89 44,7% 568 548-3,6% Other movables 233 332 42,6% 80 71-11,5% 314 404 28,7% Movables total number 23 253 30 421 30,8% 10 416 11 152 7,1% 33 669 41 573 23,5% Real Estate 1 095 594-45,7% 536 653 21,8% 1 630 1 247-23,5% Financing altogether (leasing+loan) 24 348 31 015 27,4% 10 952 11 805 7,8% 35 300 42 820 21,3% I-XII 14 / I-XII 13

Assets financed with leasing I-IX 2013 I-IX 2014 I-IX 14 / I-IX 13 X-XII 2013 X-XII 2014 X-XII 14 / X-XII 13 I-XII 2013 I-XII 2014 Vehicles 13 255 18 184 37,2% 6 352 6 742 6,1% 19 607 24 926 27,1% Light vehicles 7 491 10 759 43,6% 3 394 4 213 24,1% 10 886 14 972 37,5% Trucks 5 577 7 157 28,3% 2 856 2 508-12,2% 8 432 9 665 14,6% Other vehicles 186 268 43,9% 102 21-79,4% 289 289 0,1% Machines 5 513 6 526 18,4% 2 165 2 283 5,5% 7 678 8 809 14,7% IT 376 386 2,6% 157 153-2,6% 533 539 1,1% Planes, ships, railway 496 385-22,5% 56 78 40,9% 552 463-16,1% Other movables 229 307 33,9% 74 63-15,9% 304 370 21,7% Movables total number 19 869 25 787 29,8% 8 804 9 319 5,8% 28 673 35 106 22,4% Real Estate 1 025 583-43,2% 521 653 25,4% 1 546 1 236-20,1% Leasing altogether 20 894 26 370 26,2% 9 325 9 972 6,9% 30 219 36 342 20,3% I-XII 14 / I-XII 13

Assets financed with loans I-IX 2013 I-IX 2014 I-IX 14 / I-IX 13 X-XII 2013 X-XII 2014 X-XII 14 / X-XII 13 I-XII 2013 I-XII 2014 Vehicles 584 994 70,2% 530 543 2,5% 1 114 1 538 38,0% Light vehicles 214 447 108,8% 122 177 45,7% 336 624 86,0% Trucks 363 528 45,5% 401 352-12,2% 764 880 15,2% Other vehicles 7 19 167,1% 7 14 98,7% 14 33 133,5% Machines 2 765 3 503 26,7% 1 067 1 242 16,3% 3 833 4 745 23,8% IT 20 37 80,4% 3 30 950,3% 23 66 185,5% Planes, ships, railway 11 74 604,1% 6 10 82,4% 16 85 423,9% Other movables 4 25 570,5% 6 8 44,0% 10 34 250,4% Movables total number 3 385 4 634 36,9% 1 612 1 833 13,8% 4 996 6 467 29,4% Real Estate 69 11-83,5% 15 0-102,5% 84 11-86,8% Loans altogether 3 454 4 645 34,5% 1 626 1 833 12,7% 5 080 6 478 27,5% I-XII 14 / I-XII 13 Machines for food industry 0,5% Machines financed with loans Medical equipment 9% Other Machines&Devices 10% Building equipment 8% Machines for plastics production and metalwork 6% Printing machines 3% Agricultural machines 64%

Leasing Industry Results in 2014 Real Estate Structure of the real estate leasing market Hotels and recreational centres 3% Others 15% Industrial buildings 27% Office facilities 30% Commercial and service facilities 25% Comments: Value of the leased property in 2014 amounted to PLN 1.25 billion, which means 23.5% decline in annual terms. Negative dynamics of the market was primarily due to a significant decrease in the number of contracts (136 in 2014 versus 304 reported in 2013). The average value of the contract has has grown significantly, of 76.9% : to PLN 8.3 million in 2014 from to PLN 4.7 million in 2013. This year's average transaction value is still significantly lower comparing to previous years, when it amounted to PLN 14.8 million in 2004-2009. Real estate financing is still a "niche" area of leasing companies activity - twelve companies associated in Polish Leasing Association cocluded contracts, one more than in 2013. The structure of the real estate market is dominated by industrial buildings and commercial and service facilities. Similarly to 2013 the structure of the market is rather balanced.

Currency Structure of New Production on Leasing Market Currency structure of new production movables Currency structure of new production real estate 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Leasing in PLN Leasing in foreign currency 100% 90% Leasing in PLN 80% 70% 60% 50% 40% 30% 20% Leasing in foreign currency 10% Leasing in foreign currency 0% Comments: In 2014, similarly to previous years, financing in PLN prevailed within the structure of the new production for movables leasing. After a gradual increase in the share of leasing in foreign currency: from 16.0% in 2010 to 26.3% in 2012, in 2013 the share fell to 23.6%. In 2014 the share of mobile assets financed in foreign currency amounted to 22.3%. In the case of loans last year share of the movables financing in foreign currency amounted to 15.1% at 15.9% in 2013 and 11.0% in 2012. Last year share of foreign currency in the financing of real estate leasing amounted to 57.4%, which is similar to long-term average amounting to 56.3%.

List of Polish Leasing Association Members Akf leasing Polska S.A. BNP Paribas Lease Group Sp. z o. o. BZ WBK Leasing S.A. Caterpillar Financial Services Poland Sp. z o. o. De Lage Landen Leasing Polska S.A. Deutsche Leasing Polska S.A. DnB Leasing Sp. z o. o. Europejski Fundusz Leasingowy S.A. Getin Leasing S.A. Grupa Masterlease Handlowy-Leasing Sp. z o. o. Idea Leasing S.A. IKB Leasing Polska Sp. z o. o. Impuls-Leasing Polska Sp. z o. o. ING Lease (Polska) Sp. z o. o. Leasing-Experts S. A. Mercedes-Benz Leasing Polska Sp. z o.o. Millennium Leasing Sp. z o. o. mleasing Sp. z o. o. NOMA 2 Sp. z o. o. ORIX Polska S.A. Pekao Leasing Sp. z o. o. PKO Leasing S.A. Polski Związek Wynajmu i Leasingu Pojazdów Raiffeisen-Leasing Polska S.A. Scania Finance Polska Sp. z o. o. SG Equipment Leasing Polska Sp. z o.o. SGB Leasing Sp. z o. o. Siemens Finance Sp. z o. o. VB Leasing Polska S.A. VFS Usługi Finansowe Polska Sp. z o.o. Volkswagen Leasing GmbH Oddział w Polsce

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