Since 1922 Belarusbank reliable partner

Since 1922 Belarusbank reliable partner Nikolai Vavokhin Head of Representative Office in Germany Frankfurt am Main, September 8, 2014

Agenda 1. Belarus - Economic Environment 2. Belarusbank - Business Model and Performance 3. Belarusbank - International Business 4. Doing business in Belarus. Experience and advices of a bank 5. Contacts 2

Belarus - Economic Environment 3

Belarus: General Information Area: 207 600 sq km Population: 9.5 m. inhabitants 1 Capital: Minsk (1.9 m. inhabitants) Natural resources: potash, timber, peat, oil, granite, dolomite limestone, marl, chalk, sand, gravel, clay Administrative divisions: 6 regions + city Minsk Official languages: Belarusian, Russian International organizations membership: International Ratings: - UN, UNCTAD, UNESCO, UNIDO; - WTO (observer); - IBRD, EBRD; - IMF; - CIS; - Shanghai Cooperation Organization (dialogue member), etc. 2 3 B3 B - BB - 4

Economy Overview Indicators 2010 2011 2012 2013 1H 2014 GDP, USD bn (equiv.) 54.8 32.8 61.5 67.0 33.4 Foreign trade turnover (FFT), USD bn (equiv.) Export, USD bn Import, USD bn 67.3 29.9 37.4 95.0 46.7 48.3 * as of 01/06/2014, ** as of 01/04/2014 Source: National Statistical Committee of the Republic of Belarus, National Bank of the Republic of Belarus GDP Structure as of 01.01.2014, % 100.5 51.7 48.8 89.5 43.9 45.6 35.73* 18.08 17.65 Balance of foreign trade, USD bn - 7.5-1.6 2.9-1.7 0.43 Foreign direct investments in real economic sector, USD bn (equiv.) 5.6 13.2 14.3 11.1 3.7** Inflation, % 9.9 108.7 21.8 16.5 10.2 Public External debt, USD bn (equiv.) 10.0 12.3 12.7 12.4 13.4 Exchange rate USD/BYR 3000 8350 8570 9510 10200 Real GDP Growth, % Source: National Statistical Committee of the Republic of Belarus Comments Belarus has an open export-oriented economy. Belarusian economy has a well-diversified structure supplying goods and services to domestic and foreign markets. In comparison to GDP the national external debt stands at low level giving the country an opportunity to make safe borrowings to support its economy. Refinancing rate of the National Bank of the Republic of Belarus since 13.08.2014 20%. Source: National Statistical Committee of the Republic of Belarus 5

CIS EU Economy Overview Cross-country Comparison Country Ratings M / S&P/ F GDP Growth 2013/2012 % Gross External Debt to GDP 2013, % NPL to total gross loans 2013, % Inflation Rate 2013, % Unemployment 2013, % Belarus B3/B-/- 0.9 22.8 4.6 16.5 0.5 Ukraine Caa3/CCC/CCC 1.9 37.4 12.9-0.3 8.1 Lithuania Baa1/A-/A- 3.6 40.2. 12.5 0.4 11.4 Czech Republic A1/AA-/A+ 1.1 48.8 5.2 1.4 8.2 Greece Caa1/B-/B -3.9 157.2 31.3-0.9 27.7 Spain Baa2/BBB/BBB+ -1.2 86 8.2 1.4 25.7 Portugal Ba1/BB/BB+ -1.4 129 11.0 0.3 15.3 Poland A2/A-/A- 1.6 48.2 5.2 0.7 13.4 Germany Aaa/AAA/ AAA 0.4 81.0-1.5 5.1 Source: Bloomberg, Belarusbank 12 6

Banking Sector Performance Indicators of Belarusian Banks Indicator 2010 2011 2012 2013 01.07.14 Assets, USD bn 43.7 31.7 37.5 41.6 42.6 Authorized Capital, USD bn 4.0 3.3 3.5 3.3 3.2 Normative Capital, USD bn 5.8 4.4 5.3 5.6 5.6 Credits to clients, USD bn 29.6 17.7 25.1 29.8 30.5 Banking Assets to GDP Ratio, % Deposits from clients, USD 14.3 11.7 19.2 18.2 19.0 bn CAR, % 20.45 24.70 21.85 15.50 14.77 Profit,, USD bn 0.571 0.369 0.571 0.717 0.312 ROA, % 1.69 1.65 1.82 1.87 1.65 Source: National Bank of the Republic of Belarus Actual Value of Basic Indicators, % Source: National Statistical Committee of the Republic of Belarus, National Bank of the Republic of Belarus Comments Belarusian banking sector, as of 01.07.2014, consists of 31 banks, including 27 banks with foreign capital participation. In the reporting period banks formed special provisions for covering potential losses on assets exposed to credit risk to the extent required and ensured the compliance with liquidity and capital adequacy ratios. Source: National Bank of the Republic of Belarus 7

Belarusbank - Business Model and Performance 8

Belarusbank Overview Belarusbank Key Facts Founded in 1922, the largest financial institution in Belarus The Banker rank by Tier 1 capital No. 399 Total assets of USD 17.5 billion (as of July 1, 2014) Foreign currency short-term Foreign currency long-term Outlook Individual Support 2008 B B- Stable D/E 5 2009 B B- Negative D/E 5 2010 B B Stable D/E 4 2011 В В- Negative D/E 5 2012 B B- Negative D/E 5 2013 B B- Stable D/E 5 Ownership - 99% State Owned Financial Statements: Audited Financial Statements according to IFRS since 1997 Foreign currency long-term Foreign currency short-term Local currency long-term Local currency short-term Outlook April 2012 B- C B- C Stable April 2013 B- C B- C Positive Belarusbank Presence in Belarus, as of 01.07.2014 November 2013 B- C B- C Stable Local market position, % as of 01.07.2014 HEAD OFFICE 1 Regional Branches 6 Branches 124 Outlets 1728 9

Organizational Structure Belarusbank Group Organization Chart Belarusbank 49.3% 100% 99.9% IT Recreation (2 companies) Financial services JSC Banks Processing Center ASB Recreation center Sputnik ASB Leasing ASB Recreation center Solnechniy Representative Offices Abroad Shareholders' Structure,% 98.039% 1.937% 0.021% 98.039% 0.003% 22

Historic Milestones. Recent times 1992 Started as Labour Savings Office in new Soviet banking system 1995 Joint Stock Company Savings Bank Belarusbank was established by merger of the Savings Bank of the Republic of Belarus and Belarusbank Joint Stock Commercial Bank 1996 Belarusbank acquired Belsvyazbank and Belzheldorbank 1997 Belarusbank opened its representative offices in Russia (Moscow) and Poland (Warsaw) 2003 Belarusbank opened its representative office in Germany (Frankfurt-am-Main) 2005 Belarusbank acquired MinskKompleksBank 2007 Belarusbank opened its representative office in China (Beijing) Debut issue of Belarusbank LPN - $ 125 mln 2008 Memorandum of understanding between Belarusbank and Deutsche Boerse AG was signed 2009 Agreement for cooperation between Belarusbank and Warsaw Stock Exchange was signed 2012 2013 Belarusbank obtained a syndicated loan of $ 130 mln Belarusbank became - a full member of WSBI - Bank-partner of Interbank Consortium of the Shanghai Cooperation Organization Belarusbank became a full member of Moscow Exchange Belarusbank obtained a syndicated loan of $110 mln 2014 Belarusbank obtained a syndicated loan of 100 mln 1922, First Bank s Office in Minsk 2011, Head Office in Minsk 10 2013, New building of Belarusbank Head Office

Belarusbank s Market Position (Top 5) Assets/Capital, as of 01/07/2014, USD bn Profit, as of 01/07/2014, USD mln Bank BelVEB 30,00 BPS-Sberbank 30,00 Priorbank 40,00 Belarusbank 40,00 Belagroprombank 70,00 0,00 20,00 40,00 60,00 80,00 Source: National Bank of the Republic of Belarus Lending, as of 01/07/ 2014, USD bn Source: National Bank of the Republic of Belarus Deposits, as of 01/07/2014, USD bn Source: National Bank of the Republic of Belarus Source: National Bank of the Republic of Belarus 11

Belarusbank Financials (IFRS) According to IFRS USD million (in equivalent) 2010 2011 2012 2013 Assets 14 967.1 10 551.5 13 515.9 14 960.6 Equity 1 379.9 1 628.7 2 041.1 2 136.9 Net profit 193.7 (306.1) 257.9 92.7 Customer deposits 8 729.7 6 227.9 8 650.8 9 494.1 Loans to customers 10 268.5 4 922.6 7 708.6 9 270.6 Corporate clients (number) 88 800 89 600 86 045 90 900 CAR, % 14.27 16.08 17.28 15.90 Comments Assets Dynamics, USD mln. (in equivalent) Net Profit Dynamics, USD mln. (in equivalent) 12

Belarusbank International Business 13

International Trade Belarusbank s Share in Foreign Trade of the Republic of Belarus Belarusbank Customers Export and Import Export Import Export, USD bn 2010 2011 2012 2013 The Republic of Belarus 29.9 46.7 51.7 43.9 Belarusbank 9.5 12.3 10.9 10.2 Share 32% 27% 21% 23% Import, USD bn 2010 2011 2012 2013 The Republic of Belarus 37.4 48.3 48.8 45.6 Belarusbank 9.3 12.9 12.0 9.4 Share 25% 27% 24% 21% Belarusbank s share in servicing of the foreign trade of the Republic of Belarus 22% 14

External Financing in Belarusbank s Funding Structure of Belarusbank s Funding Base as of 01.07.2014 12% 88% Internal Sources Foreign Funding Comments Belarusbank does not have any late payments towards nonresident creditors 15

Long-term funding Tied financing (including ECA-covered loans) Cooperation with ECAs Austria Belgium China Czech Republic Denmark Finland France Germany Hungary Italy Japan Norway Poland Russian Federation Slovakia Slovenia Switzerland Turkey 16

DCM / Deal Long-term Tombstones funding 2006-2012 Some long-term projects financed with ECA cover during last 5 years Economic Sector attracted since 2008 to 2013 Loan Agreements amount, USD mln in equivalent Transport 400 Construction 300 Woodworking industry 280 Machinery & Metallurgy 260 Light & Food industry 240 Petrochemicals 170 Agriculture 160 Energetics 150 TOTAL: 1 960 26 17

Short-term financing Trade Financing Dynamics Foreign Banks Credit Lines for Trade Finance Operations: Geography of Cooperation Austria Belgium Denmark France Finland Germany Italy Kazakhstan Latvia Lithuania Netherlands Poland Russian Federation Sweden Switzerland 18

Belarusbank Today Major partner banks in Germany Bank Long-term financing volumes (USD mln) Deutsche Bank *** *** *** *** *** *** *** *** *** Total 1253,5 19

International awards The Banker highly rated the Belarusbank s brand value placing it 480th in The Top 500 Banking Brands list Belarusbank has become the best in Belarus in nomination Best Banks of the emerging market of the Central and Eastern Europe in 2009, 2010 and 2013 The Banker appreciated Belarusbank as the best bank of Belarus in 2010. According to the Banker s overview results for 2013 Belarusbank occupied 399 place in the world and is in the list of 25 largest banks of the Central and Eastern Europe by Tier 1 Capital. In the competition Award for Achievement Belarusbank has become the Best Bank of the Republic of Belarus Belarusbank has become the best bank of Belarus in nomination Best Bank of the Central and Eastern Europe and the CIS EMEA recognized Belarusbank as Best bank in Belarus, Best investment bank in Belarus, Best broker in Belarus in 2011, 2013 and as Best bank in Belarus, Best investment bank in Belarus" in 2012 Belarusbank has won an award Highly Commended of the Trade & Forfaiting Review in the nomination Deals of the Year in 2011 and 2013 20

What do we do to make your business happen? Short-term trade financing Syndicated Loans Long-term financing Forfaiting Leasing Credit Linked Notes Bilateral Loans Eurobonds FX Trade And much more 21

Doing business in Belarus. Experience and advices of a bank 13

Challenges of the local market Identifying a partner Investing in a tailor-made offer Winning a beauty contest Engineering a satisfactory financing scheme Strengthening relationship alongside with deliveries Identifying a next partner 21

Engineering a satisfactory financing scheme Financing 100% of deliveries and some part of the local cost if any in most cases necessary Check a possibility of getting Euler-Hermes cover well in advance Be flexible and when necessary try multi-sourcing, change the origin of the exported goods, split the contract to smaller parts For having a happy story you need asp. the full team on board, i.e. the Exporter s and an experienced Importer s banks Do not hesitate to involve the Importer s bank at the early stage they are friendly, helpful with following the local rules and regulations. The Importer relies a lot on his home bank. We are interested your business happen! 21

What can we do and what we need to foster our businesses? Defend our right to (a better) life Euler-Hermes to play a new role and its basic requirements to be softened German financial institutions to increase business with Belarus Multinational German companies are most welcome, Mittelstand to follow Do not be afraid of risks evaluate and insure them properly New bilateral or EU-umrelled programs to support PPP will produce more positive effect than strings or sanctions 21

Why Belarusbank is the right choice in supporting your business? We can what other banks are not able to do Longstanding and a perfect track record Mentality of a reliable Borrower and confidence of Lenders Incomparable to any other bank funding possibilities Strong support of our clients in any situation Experienced stuff Easy to reach in Germany 21

Contacts HEAD OFFICE International Business Department Elena Trofimovich Head of Trade and Structured Finance 18, Dzerzhinski Av., 220089 Minsk, Belarus Tel.: + 375 (17) 309 06 68 Fax: + 375 (17) 289 37 82 E-mail: elena.trafimovich@belarusbank.by REPRESENTATIVE OFFICE IN GERMANY Nikolai Vavokhin 43, Oeder Weg D-60318 Frankfurt am Main, Germany Tel.: +49 (69) 5979 35 63 Fax: +49 (69) 5979 47 44 E-mail: info@belarus-bank.de 23

Since 1922 Спасибо! Vielen Dank! Frankfurt am Main, September 9, 2014

RELIABLE PARTNER Since 1922 Спасибо за внимание! Vielen Dank für Ihre Aufmerksamkeit! Frankfurt am Main, September 8, 2014