Joint Stock Company THE STATE EXPORT-IMPORT BANK OF UKRAINE Investor - PowerPoint PPT Presentation

Joint Stock Company THE STATE EXPORT-IMPORT BANK OF UKRAINE Investor presentation Kyiv, December 2018

Agenda Overview 1 Operating results 9 Recent developments since end-2017 12 Balance sheet & Income statement summary 14 1

Overview  Established in 1992  Leading corporate sector lender with focus on long-term and investment loans  Leading provider for structured and trade finance  Top Ukrainian bank to partner IFIs under various multilateral programs  Prime channel of settlements related to international economic activity  Sole Financial Agent for the Government Selected IFRS figures as at 01.10.2018 (unaudited) Ownership: Cabinet of Ministers of Ukraine, 100% UAH mln Branch 22 branches, 43 sub-branches, network : 2 Representative offices (London, New York) Total Assets, incl: 163,963 Customers: corporate – over 40,000 loans to customers (net) 71,905 • individual – over 790,000 • Investment securities 67,765 Employees: 3,500 Total Liabilities, incl: 155,572 Head Office: Kyiv, Ukraine • due to customers 86,547 Ratings Eurobonds Issued (incl. subordinated) 46,869 • Long-term foreign currency B- (Stable) Caa2(Positive) • due to IFIs 19,707 Long-term local currency B- (Stable) Caa2(Positive) Total Equity 8,392 2

Leading market position Leading corporate sector lender and provider for structured and Top Ukrainian bank by capital markets and IFIs funding trade finance 64% 58% 31% 15% 12% 9% 7% 4% Ukreximbank Oschadbank Raiffeisen Bank Others Ukreximbank Oschadbank ProCredit Bank Others Aval market share by capital markets & IFI funding market share by loans to corporate customers (net) 3 d largest bank in Ukraine by assets 3 d largest bank in Ukraine by amounts due to customers 47% 52% 26% 23% 15% 16% 12% 9% Privatbank Oschadbank Ukreximbank Others Privatbank Oschadbank Ukreximbank Others market share by assets (net) market share by amounts due to customers Source: NBU statistics as at 01.10.2018 3

Strengths Diversified asset structure Stable funding base State Commitment Loan book focused on corporate clients Clients’ funds with high roll -over ratio 100% state ownership with strong sectoral diversification Benefit from access to debt capital market Maintained capitalisation through equity Investment portfolio of safe and liquid injections Financing via IFIs loans and project instruments – Ukrainian state bonds finance Recognized by the National Bank as a Project finance through IFI programs and systemically important bank The only Ukrainian bank recognized as a foreign export credit agencies coverage direct Borrower/Guarantor by 36 foreign Reliable partner to all IFIs working in Strong documentary business and trade Export Credit Agencies Ukraine finance franchise Sole Financial Agent for the Government on official foreign loans Focus on corporate clients Access to capital markets Agent partner to IFIs 99% of the loan book with corporates $2,925 mln Eurobonds issued since 2004 Export development projects with IBRD in the amount of $525 mln Leading corporate sector lender with The only bank in Ukraine that issued focus on long-term and investment loans Eurobonds in local currency ($300mln Energy efficiency programs with IBRD, equivalent issued in 2011 and $150mln EBRD and GCPF aggregate of $500 mln Prime channel of settlements related to equivalent issued in 2018) international economic activity SME & Mid-caps facilities from IBRD and First Ukrainian bank which tapped EIB with total commitment $640 mln Extensive network of correspondent Eurobonds market since 2014-2015 banks Trade facilitation programs with EBRD economic crisis in Ukraine and IFC with total commitment $350 mln Agency services to the Ministry of Finance under various IFI projects 4

Diversified asset structure Highly liquid assets structure with large share of comparatively low- Diversified loan book with strong emphasis on export-oriented risk Government bonds corporate clients. Extractive industry 16% Net loan Agriculture and food industry 14% portfolio; 44% Trade 12% Chemical industry 9% Real estate 8% Other Power engineering 8% assets; 7% Mechanical engineering 7% Construction 6% Amounts Metallurgy 6% due from Production of construction materials 5% other banks; Hotels and restaurants 4% 0.4% Cash and Government Other industries 3% cash bonds; 40% Production of rubber and plastic goods 2% equivalents; Transport & communications 1% as at 01.10.2018 as at 01.01.2018 8% Individuals 1% The only Ukrainian bank recognized as a direct Borrower/Guarantor Strong documentary business and trade finance franchise by 36 foreign Export Credit Agencies  1,431 trade finance transactions in aggregate of $973 mln in 2017  Ukreximbank clients enjoy favorable terms of trade finance lines from EBRD and IFC: Global trade finance Trade facilitation guarantees programme programme Limit: $80 mln Limit : $270 mln Source: Ukreximbank IFRS financials, managerial data Figures as of end-3Q2018 derived from unaudited IFRS financials 5

Stable funding base Funding base of the Bank primarily consists of corporate clients’ Clients’ funds comprise of term deposits and low -cost current accounts funds and long-term international capital markets funding. with high roll-over ratio. Individuals' Corporates ’ funds Individuals’ funds Eurobonds funds; 17% (incl. 16% 44% subdebt); 30% 84% IFIs; 13% Corporates' 56% Current accounts Term deposits Other banks; funds; 39% 1% as at 01.10.2018 as at 01.10.2018 Smooth Eurobonds maturity profile with manageable The Bank enjoys financing via various IFIs loans and projects peaks in 2019 and 2021. 483 UAH 4,051 mln 438 198 158 85 75 38 2019 2020 2021 2022 2023 2024 2025 USD Eurobonds, $mln UAH Eurobonds, $mln (equiv) Source: Ukreximbank IFRS financials, managerial data Figures as of end-3Q2018 derived from unaudited IFRS financials 6

State commitment. Retained capital position Severe economic deterioration in 2014-2015 resulted in increased loan Continued support of the Bank by the state as a shareholder allowed loss provisions. the Bank to stabilize capital position. 48% 44% 43% 42% 9.3 32% * 7.7 137 116 17% 104 65 5.0 96 48 46 41 73 23 50 9 2014 2016 2017 2013 2014 2015 2016 2017 9m2018 Capital injections, UAH bln Gross Loans, UAH bln LLP, UAH bln Provisioning ratio, % * 9m2018 increase inter alia due to IFRS9 effect Loss absorption capacity has grown following The state remains supportive to the Bank given it’s high systemic the recapitalisation by the state. importance . 21.7% IFRS9 effect “The Ukrainian authorities have a high propensity to support the bank given its state ownership, policy role, high 12.7% systemic importance and the record of capital support under different governments. ” 9.6% 16.3% “The Caa2 GLC deposit rating assigned to Ukreximbank is based 9.6% 5.8% on its caa2 BCA and our assessment of a very high probability 2016 2017 9m2018 of government support in the event of need . ” Tier 1 CAR Total CAR Source: Ukreximbank IFRS financials,, managerial data Figures as of end-3Q2018 derived from unaudited IFRS financials 7

Credit ratings at sovereign ceiling RECENT RATING ACTIONS 23 July 2018: Fitch Ratings has affirmed the ratings Fitch Ratings Ukreximbank. The affirmation of the ratings reflects limited changes to these bank’s standalone credit profiles Long-term foreign currency issuer default rating B- Stable and Fitch's view of potential support, if required, from the government of Ukraine (B-/Stable). Foreign currency senior unsecured debt rating B- 25 July 2017: Fitch has affirmed the long-term foreign currency rating at B-(Stable) driven by the bank’s strengthened capitalization and loss absorption capacity, Long-term local currency Issuer Default Rating B- Stable reasonable coverage of NPLs by specific reserves, the bank’s moderate risk appetites since Ukraine's downturn Short-term foreign currency issuer default rating B in 2014, manageable refinancing risks and solid liquidity cushions. 26 June 2018: Moody's assigned Counterparty Risk Moody ’s Investors Service Ratings (CRR) to Ukreximbank following the update to Moody's Banks rating methodology. Long-term Counterparty Risk Rating (Local and Foreign Currency), Long-term foreign-currency senior unsecured debt rating Caa2 Positive assigned Caa1. Short-term Counterparty Risk Rating (Local and Foreign Currency), assigned Not Prime. Long-term local-currency deposit rating Caa2 Positive 30 August 2017: Followed by sovereign rating action Moody’s upgraded Ukreximbank’s long-term local Long-term foreign currency deposit rating Caa3 Positive currency deposit and foreign currency senior unsecured debt ratings to Caa2 (Positive) driven by improved operating environment as well as stable funding and Long-term foreign-currency subordinated debt rating Caa3 liquidity profile and very high probability of government support in the event of need. 8

Agenda Overview 1 Operating results 9 Recent developments since end-2017 12 Balance sheet & Income statement summary 14 9