Corporate Banking Presentation

Corporate Banking Presentation Bratislava, December 4 th 2015

AGENDA 1. VUB BANKA 2. Corporate Banking in VUB 3. Products and Services for Corporate Customers 4. Our Team 2

VUB Banka is a Bank of Leader in Italy with unique customer reach Strategic International Presence A big bank with robust balance sheet and liquidity Key considerations Leader in all segments with a market share of 15.2% in customer loans, 15.0% in customer deposits, 30.4% receivables discounting (factoring) Strong capital base and best in class in asset quality Particular strength in the wealthiest areas of Italy: strong retail presence covering more than 70% of Italian household wealth and retail funding Selected retail banking presence in CEE and MENA countries reaching 8.3m clients in 12 countries through a network of ca.1,300 branches International network with a presence in 29 countries in support of cross-border activities of corporate customers Investment bank product desks and highly experienced specialists operating from international financial hubs (London, NY, Dubai, HK) Among the top 10 largest EU bank by capitalization and positive results Fully compliant with Basel III Regulation Huge liquidity and unencumbered assets available Funding and risk perception back to normal ISP 5 years CDS to level pre-eu crisis in 2011 and going down 3 Key figures Data in bn (unless otherwise stated) Dec. 1H 2014 2015 Employees (#) 89,486 92,053 Total assets 646.4 668.4 Loans to customers (1) 339.1 344.2 Deposits 945.0 974.3 Direct customer deposits 364.9 Direct deposits from banking business 360.0 Direct deposits from insurance business and technical reserves Indirect customer deposits 119.0 124.4 Assets under management 302.0 324.4 Assets under administration 164.0 160.5 Capital ratios % Tier 1 ratio 14.2% 14.0% Total capital ratio 17.2% 17.2% P&L Operating Margin 8.4 5.2 Net Income 1.7 2.0 Rating Rating agency Long term LT outlook Short term S&P BBB- Stable A-3 Moody's Baa1 Stable P-2 Fitch BBB+ Stable F2

VUB Banka Key figures Intesa Sanpaolo Holding International S.A. - INTESA SANPAOLO Group - is the majority owner with a stake of 97,02% (*) Consolidated financial statements Dec.2014 (data in m) (*) Loans and Advance to Customers 8.282 Due to Customers 7.859 Equity 1.428 Total Assets 11.698 Net profit for the year 145 Commercial Indicators 12.2014 (*) Number of employees (VUB Group) 4.003 Number of Branches in Slovakia (VUB Bank) 247 Atms 566 Rating (status as of June 10 th,2015) Moody`s Long term deposit A2 Short term deposit P-1 Stable outlook History A universal bank owned and controlled by the state Bank privatization Banca Intesa acquired 95% share in capital in November 2001 Foundation of Consumer Finance Holding (Quatro, Triangel, and others) Establishment of a JV between VUB and Generali the third largest pension fund management company in Slovakia BOF Leasing Takeover (re-branded to VUB Leasing in 2008) By 1998 2001 2004 2005 2007 4 (*) Source: VUB Bank 2014 Annual Report

VUB Banka VUB Asset. Management receives cash from the public based on a public bid and subsequently invests it into assets in compliance with the applicable regulations VUB Factoring is the leader in nonrecourse factoring and the only Slovak factoring company with membership in Factors Chain International, the international association of factoring companies. VUB Generali is a joint venture between VUB and Generali. The company is the key player in the system of old-age pension insurance, the so-called Pillar 2. VUB Leasing has been a member of the VUB Group since 2007. It provides comprehensive financial and operative leasing services with a universal focus. CFH Holding, formed in 2005, manages financial companies involved in providing consumer non-bank loans, hire purchase, and catalogue sale and lease of used cars. 5

VUB Banka BANK Total assets ( bn ) Market share % Shareholder structure VUB: Product Market share % and Ranking 20.4 Erste Bank 100% 1st Mortgages 17.9 Intesa Sanpaolo, 96.84% Loans (netto) 18.3% 16.1 Raiffeisenbank 79% Real Estate Loans* 22.1% 9.6 KBC 100% Receivables Finance 39.0% 6.6 4.1 J&T Finance 51.7%, J&T Banka 36.4% Erste Bank 35%, Raiffeisen 32.5%, Bausparkasse Schwäbisch 32.5 Branches Total Assets VUB AM (VUB part) 18.7% 17.9% 19.0% 3.3 Sberbank 99.5% Deposits 17.4% 3.0 Penta Investments 96.8% 2.4 OTP Bank 99.2% as of September 2014, Source NBS, financial statements * According to NBS Real Estate Loans do not contain construction loans 6

VUB Banka VUB is among the best rated banks on the Slovak market (as of June 10 th, 2015) SLOVAK BANK ULTIMATE PARENT COUNTRY. Moody s / S&P, Fitch scale Aaa / AAA Aa1 / AA+ Aa2 / AA Aa3 / AA- A1 / A+ A2 / A A3 / A- Baa1 / BBB+ Baa2 / BBB Baa3 / BBB- Ba1 / BB+ Ba2 / BB VUB KBC Tatra Banka CSOB SLSP * Erste * Unicredit SK** ISP Unicredit Erste RZB OTP Bank HU Ratings by Moody s www.moodys.com except SLSP (by Fitch) 7 *Ratings by Fitch using different methodology **Rating withdrawn from this level, Dec 2013 Austria Belgium Czech Republic Slovakia Italy Hungary highest quality high quality upper-medium grade moderate credit risk Speculative Rating Grade

AGENDA 1. VUB BANKA 2. Corporate Banking in VUB 3. Products and Services for Corporate Customers 4. Our Team 8

Corporate Banking in VUB Corporate Division Organizational Structure VUB Factoring, a.s. daughter company Corporate Banking Division Corporate Customer Small & Medium Enterprises Corporate Transactions Banking Financial & Capital Markets Project & Real Estate Finance Team 1 Regional CBN Management - Bratislava Export and Trade Finance Institutional Sales Real Estate Finance Team 2 Regional CBN Management - West Regional CBN Management - Central Regional CBN Management - East Factoring Cash Management and Data Analysis Depository & Custody Trading Sales Project Finance, Syndication and EU Sme Corporate Customers Trade Finance Factoring Real Estate Finance Project Finance Annual turnover over 1m up to 50m Annual turnover over 50m Market leader in export finance as well as in guarantee volumes Market leader in non-recourse factoring and invoice discounting in SR The highest y/y percentage growth in the loan portfolio among banks providing loans to finance real estates 9

Corporate Banking in VUB Branch Network VUB Prague Branch (CZ Rep.) Teams of corporate banking specialists are ready to help and provide comprehensive financial services to clients Corporate network consists of 32 corporate branches covering 4 different area all around Slovakia and 1 Branch in Prague (CR) WESTERN SLOVAKIA EASTERN SLOVAKIA BRATISLAVA CENTRAL SLOVAKIA 10

AGENDA 1. VUB BANKA 2. Corporate Banking in VUB 3. Products and Services for Corporate Customers 4. Our Team 11

VUB Banka Products and Services for Corporate Customers Cash Management Accounts Flexi business accounts Current accounts in domesticand foreign currencies Current accounts for a company before its legal establishment Fund accounts for social purposes and reserve funds SWIFT services Sending of MT 940 Sending of MT 941 Sending of MT 942 Receipt of MT 101 Receiving of payments in xml format Escrow accounts Cash Pooling Domestic => real - Zero Balancing => fictive - Interest Compensation Virtual Account Corporate Payment Cards Debit cards - Maestro - Visa Business - MC Business Gold Cross-border => real - Zero Balancing => real - Cash Concentration Credit cards - Visa Business Revolving - Visa Business Gold 12

VUB Banka Products and Services for Corporate Customers Cash Management Domestic Payment Services Cash services (deposits, withdrawals, sealed envelopes, night sales) Receipts (D+0) Direct debits (D+2) Standard payments (D+1) On-line payments within the bank (D+0) Urgent payments via SIPS (D+0) Priority payments via TARGET 2 (D+0) X-border Payment Services Receipts (D+0) Cheque payments & collections EURO regulated / SEPA payments (D+1) Urgent EURO TARGET 2 payments (D+0) Standard FCY payments (D+2) Accelerated FCY payments (D+1) Urgent FCY payments D+0) E-BANKING SERVICES Telephone services KONTAKT services Mobile banking Corporate services Business banking Multicash Internet services Internet banking Internet banking plus InBiz Portal (ISP Group) Merchant services e-payments (non-cash internet payments) e-cards (credit card payments via internet) EFT POS terminals e-commerce 13

VUB Banka Products and Services for Corporate Customers Loans Flexi business loans Standard operating loans granted as overdraft, revolving and term loans Continuous financing of shortterm and mid-term operating needs in case of lack of own financial funds Collateral all acceptable forms of collateral upon mutual agreement between the bank and a customer Financing operating needs of municipalities Investment Loans Mid-term and long-term investment loans with an option to postpone repayment of principal until completion of the investment project Loans to finance purchase of tangible and intangible assets (real estates, machinery, and equipment), renovation, reconstruction, maintenance, know-how, research, and financial investments). Financing of investment projects of municipalities Bridge Loans with the EU Funds Bridge loans help in financing projects prior to disbursement of funds from the EU Structural Funds Comprehensive services: consultancy, credit commitment, and co-financing for all sectors Bridge loans with the EU funds for municipalities Financing of Farmers FLEXI Loan for Farmers - Bridge loan to overcome a gap between coverage of higher operating needs primarily during starting and taking crops and disbursement of APA subsidy. Loan can be granted for two subsidy period FLEXI pôda Investment loan for purchase of agricultural land, which is intended for agricultural production Financing of Warehouse Bonds and Commodity Warrants 14

VUB Banka Products and Services for Corporate Customers Trade Finance and Factoring Production Issuance of Guarantees Payment guarantees Bid bonds Advance payment bonds Performance bonds Retention bonds (after delivery) Customs bonds Stand-by letters of credit Issuance of Letters of Credit and Consultancy Export and Import Documentary Collections Financing of Production Pre-Export Financing Delivery 15 Invoice Discounting and Forfaiting Based on a business agreement, an invoice, acknowledged bill of delivery, notified assignment + confirmation in writing Based on an export letter of credit, a receivable secured by a bank guarantee or endorsed promissory note (forfaiting) Buyers Credits Based on a business agreement, which serves as a basis for a buyer from abroad to request mid-term or long-term financing Based on a close cooperation with Eximbanka, insurance against political and business risks => options: A) Indirect loans (VUB grants it to a foreign bank) B) Direct Loans (VUB grants it to a foreign importer) Factoring Full range of factoring products offered: Domestic factoring Export and import factoring Recourse and non-recourse factoring Management of receivables FlexiFactoring

AGENDA Project and Real Estate Finance Project Finance Project Financing Financing of Green field projects Green field industrial projects Brown field projects financing reconstruction of old unused premises to new production facilities Energy projects financing Infrastructure projects financing PPP projects financing (public-private sector) Mergers and Acquisitions M & A financing financing of mergers and acquisitions MBO financing financing of Management Buyout Syndicated Financing Volume intensive funding arrangement provided by a club/syndicate of banks led by VÚB Real Estate Finance Acquisition loans Construction loans Investment loans 16 Generally, the above loans are paid off in the long run from rent, sales, or operating revenues

VUB Banka Products and Services for Corporate Customers Treasury FX Market Products Spot Transactions (FX SPOT) Forward Transactions (FX FORWARD) FX Swaps FX Options: Plain vanilla options Barrier options Digital options Structured FX Products Commodity Derivatives Money Market Products 17 Standard Term Deposits Automatic O/N deposits VÚB Deposit Promissory Notes Structured Deposits Treasury Bills and Government Bonds Securities Interest Rate Swaps and Options Structured Interest Rate Products

VUB Banka Products and Services for Corporate Customers VUB Leasing Main facts The predecessor of VUB Leasing founded in the year 1991 as the 1st leasing company in Slovakia; VUB Leasing is an univeral leasing comapany financing different type of assets for all segments (business & consumers); Currently, the Nr. 4 on the leasing market (in terms of new volumes generation and total assets); Of the top 3 leasing companies with highest y/y increase in total assets; Development of car business (relationship with importer, dealers, final customers) is one of key priorities for the future; Our products 18 Financial leasing (business & consumers), Operating leasing (business), Loan (business & consumers), Installment sale (business & consumers), Stock financing (business), Real estate financing; Different modification of client s repayment schedule for car financing (linear & balloon structures);

AGENDA 1. VUB BANKA 2. Corporate Banking in VUB 3. Products and Services for Corporate Customers 4. Our Team 19

OUR TEAM Jozef Kausich Head of Corporate Telephone: + 421 2 5055 2301 E-mail: jkausich@vub.sk Marco Maria Lucini Head of Group Client Desk Telephone: : + 421 2 5055 2824 Mob.: + 421 904 757 333 E-mail: mlucini@vub.sk Marian Siranec Head of Large Corporate Telephone: : + 421 2 5055 2550 E-mail: msiranec@vub.sk Lucia Kovacova Relationship Manager Telephone: : + 421 2 5055 2629 Mob.: + 421 904 755 105 E-mail: lkovacova@vub.sk 20

DISCLAIMER The information in this presentation is for discussion purposes only. Under no circumstances may a copy of this presentation be shown, copied, transmitted or otherwise given to any person other than your authorized representatives The content of this document is for general promotional purposes only and is based on the level of knowledge of the person entrusted with its compilation on the date of the preparation of this document. The content is subject to change without notice. The document neither provides a full and complete overview of the transaction itself, the potential risks and consequences, nor take into account the individual circumstances and needs of our investors regarding income, taxes and risk tolerance. The document is not intended to be an offer, or the solicitation or recommendation of any offer, to buy, subscribe or sell the financial instrument referred to herein. The illustrated market performance and sample calculations cannot provide reliable predictions about the future performance of any financial instruments and/or index. Neither VUB Bank nor any of its employees and/or representatives shall be liable for any direct, indirect and/or consequential loss or expense, which anyone may incur as a result of acting or omitting to act in reliance on this document. The contents of this document is not intended to constitute any sort of advice, including but not limited to legal, tax, accounting and investment advice. The information herein has been obtained from, and any opinions herein are based upon, sources believed reliable. Therefore, no representation or warranty, express or implied, is made to, and no reliance should be placed on, the accuracy, completeness or correctness of the contents of this document. Since not all transactions are suitable for every investor, prior to the entering into any transaction, the investor shall consult its independent advisors (including but not limited to legal and tax advisor), to make sure that, irrespective of the information, statements and opinions provided herein, the planned investment fits into the investors needs and preferences and that the involved risks are fully understood by the investor and that after due consideration the investor is convinced that s/he wish to enter into the planned transaction described and is able to do so. This document may not be reproduced, distributed, published or made available to third parties without the prior written consent of VUB Bank. 21