#1UKR EXIM BANK Joint Stock Company THE STATE EXPORT-IMPORT BANK OF UKRAINE Investor presentation Kyiv, December 2019#2UKR EXIM BANK 2019 Agenda Overview Operating results Major events in 2019 Balance sheet & Income statement summary 1 9 12 15 1#3UKR EXIM BANK ◉ 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 Overview Selected IFRS figures as at 01.10.2019 (unaudited) Ownership: Cabinet of Ministers of Ukraine, 100% UAH mln Total Assets, incl: ⚫ loans to customers (net) Investment securities 143,226 62,843 47,815 Branch network: Customers: 22 branches, 39 sub-branches, 2 Representative offices (London, New York) corporate individual over 36,700 over 650,000 Employees: 3,337 Total Liabilities, incl: 133,233 Head Office: Kyiv, Ukraine • due to customers 78,596 Ratings Fitch Ratings . Eurobonds Issued (incl. subordinated) 31,151 Long-term foreign currency B (Positive) M Caa2 (Stable) • due to IFIS 21,639 Total Equity 9,994 Long-term local currency B (Positive) Caal (Stable) 2019 2#4UKR EXIM BANK Top Ukrainian bank by capital markets and IFIs funding 62% 23% 6% Leading market position Leading corporate sector lender and provider for structured and trade finance 14% 13% 9% 9% 64% Ukreximbank Oschadbank ProCredit Bank Others Ukreximbank Oschadbank Raiffeisen Bank Aval Others market share by capital markets & IFI funding market share by loans to corporate customers (net) 3d largest bank in Ukraine by assets 21% 15% 10% 54% 3d largest bank in Ukraine by deposits from corporate customers 16% 11% 10% Privatbank Oschadbank Ukreximbank Others Ukrgazbank market share by assets (net) 2019 Oschadbank Ukreximbank 63% Others market share by time deposits from corporate customers Source: NBU statistics as at 01.10.2019 3#5UKR EXIM BANK Strengths Diversified asset structure Loan book focused on corporate clients with strong sectoral diversification • Investment portfolio of safe and liquid instruments - Ukrainian state bonds Project finance through IFI programs and foreign export credit agencies coverage • Strong documentary business and trade finance franchise Stable funding base Clients' funds with high roll-over ratio • Benefit from access to debt capital market Financing via IFIs loans and project finance · • The only Ukrainian bank recognized as a direct Borrower/Guarantor by 36 foreign Export Credit Agencies State Commitment • 100% state ownership • Maintained capitalisation through equity injections • Recognized by the National Bank as a systemically important bank • Reliable partner to all IFIs working in Ukraine • Sole Financial Agent for the Government on official foreign loans Focus on corporate clients 99% of the loan book with corporates Leading corporate sector lender with focus on long-term and investment loans • Prime channel of settlements related to international economic activity • Extensive network of correspondent banks Access to capital markets $2,925 mln Eurobonds issued since 2004 The only bank in Ukraine that issued Eurobonds in local currency ($300mln equivalent issued in 2011 and $150mln equivalent issued in 2018) • First Ukrainian bank which tapped Eurobonds market since 2014-2015 economic crisis in Ukraine Agent partner to IFIs Export development projects with IBRD in the amount of $525 mln • Energy efficiency programs with IBRD, EBRD and GCPF aggregate of $500 mln • SME & Mid-caps facilities from IBRD and EIB with total commitment $640 mln • Trade facilitation programs with EBRD and IFC with total commitment $350 mln Agency services to the Ministry of Finance under various IFI projects 2019 4#6UKR EXIM BANK Diversified asset structure Highly liquid assets structure with large share of comparatively low- risk Government bonds Diversified loan book with strong emphasis on export-oriented corporate clients. Agriculture and food industry Other assets;. 5% Amounts due from other banks; 0.2% Cash and 15% Net loan portfolio; 44% Extractive industry Chemical industry 12% Trade 11% 10% Power engineering Real estate Metallurgy 10% 8% 6% Mechanical engineering Construction 6% 5% Production of construction materials 4% Other industries 4% Government bonds; 32% Hotels and restaurants Transport & communications 3% 2% Production of rubber and plastic goods 2% Individuals 1% as at 01.01.2019 as at 01.10.2019 cash equivalents; 19% The only Ukrainian bank recognized as a direct Borrower/Guarantor by 36 foreign Export Credit Agencies USEXIM, USA EXIMBANK of China EULER HERMES COFACE, France Germany OeKB. Austria SID Bank, Slovenia Spain SACE, GIEK, Italy Norway EGAP. Czech Republic CESCE ။ EDC. Canada KUKE. Poland JBIC, Japan NEXI, Japan KEXIM. Korea + SERV. HBOR, Croatia Switzerland ECICS Limited. Singapore EKF. Denmark ONDD. Belgium Eximbanka SR. Slovak Republic Strong documentary business and trade finance franchise ➤ Over $1bln annual turnover in trade finance transactions ➤ Ukreximbank clients enjoy favorable terms of trade finance lines from EBRD and IFC: IFC International Finance Corporation World Bank Group Global trade finance guarantees programme EKN, Sweden Limit: $80 mln European Bank for Reconstruction and Development Trade facilitation programme Limit $270 mln 2019 Source: Ukreximbank IFRS financials, managerial data 5#7UKR EXIM BANK Stable funding base Funding base of the Bank primarily consists of corporate clients' funds and long-term international capital markets funding. Clients' funds comprise of term deposits and low-cost current accounts with high roll-over ratio. Individuals' funds; 19% Corporates' funds; 40% Eurobonds (incl. subdebt); 23% IFIS; 16% Other banks; 1% as at 01.10.2019 Smooth Eurobonds maturity profile with manageable peaks in 2019 and 2021. 438 ($375 mln repaid 483 in Apr 2019) 198 Iib. 158 85 75 $100m 10NC5 sub 2019 2020 2021 2022 2023 2024 USD Eurobonds, $mln UAH Eurobonds, $mln (equiv) 2019 53% Corporates' funds 47% 84% Individuals' funds 16% Current accounts Term deposits as at 01.10.2019 The Bank enjoys financing via various IFIs loans and projects European Investment Bank S European Bank for Reconstruction and Development THE WORLD BANK 38 38 IFC NB NORDIC INVESTMENT BANK GLOBAL CLIMATE PARTNERSHIP FUND 2025 Source: Ukreximbank IFRS financials, managerial data CO 6#8UKR EXIM BANK Loss absorption capacity supported by substantial loan-loss reserves coverage 69% 70% 116 104 66 69 46 48 2016 81% 75% State commitment. Retained capital position Stable capital position 21.7% IFRS9 effect 15.1% 12.8% * 137 9.6% 80 119 76 65 57 16.3% 13.0% 9.8% 5.8% 2017 2018 end 9m2019 Gross Loans, UAH bln LLP, UAH bln * 2018 increase inter alia due to IFRS9 effect Impaired loans (Stage 3 & POCI) LLP to Impaired loans, % 2016 2017 Tier 1 CAR 2018 Total CAR end 9m2019 The Bank's capital adequacy has been supported by capital injections from the State as a shareholder in 2014-2017 5.0 2014 9.3 7.7 2016 2017 The state remains supportive to the Bank given it's high systemic importance Fitch "The Caal global local currency deposit rating assigned to Ukreximbank is based on its caal Baseline Credit Assessment, and our assessment of a very high probability of the bank receiving government support in times of need." "The propensity to provide support to Ukreximbank remains high, in Fitch's view. This view takes into account the bank's 100%-state ownership, high systemic importance and the record of capital support under different governments." 2019 Capital injections, UAH bln Source: Ukreximbank IFRS financials,, managerial data 7#9UKR EXIM BANK Fitch Ratings Fitch Ratings Long-term foreign currency issuer default rating B Credit ratings at sovereign ceiling Positive RECENT RATING ACTIONS 24 September 2019: Fitch has upgraded long-term foreign currency rating to B (Positive). Fitch expects that the improving macroeconomic stability, the country's reasonable economic prospects and further stabilisation in the sovereign's credit profile should have positive implications for the bank's standalone credit profile. Fitch view of the operating environment in Ukraine also factors in recovering performance of the banking sector, improved solvency levels and lower refinancing risks. Foreign currency senior unsecured debt rating B Long-term local currency Issuer Default Rating B Positive Short-term foreign currency issuer default rating B M Moody's Investors Service Long-term foreign-currency senior unsecured debt rating Caal Stable Long-term local-currency deposit rating Caal Stable Long-term foreign currency deposit rating Caa2 Stable Long-term foreign-currency subordinated debt rating Caa2 2019 27 December 2018: Followed by Moody's upgrade of Ukraine's sovereign bond rating to Caal (Stable) driven by recent improvement in the creditworthiness of the Government of Ukraine, Moody's upgraded Ukreximbank's long-term local currency deposit and foreign currency senior unsecured debt ratings to Caa1 (Stable) with the following credit strengths: Good liquidity Sufficient loss absorption supported by good provisioning coverage, sufficient capital position and profitable performance Strong business position in the context of Ukraine 8#10UKR EXIM BANK Agenda Overview Operating results Major events in 2019 2019 Balance sheet & Income statement summary 1 9 12 15 0#11UKR EXIM BANK Returning to profitability with stabilized loan quality Stabilized asset quality after 2014-2015 crisis allowed the Bank to return to profitability in 2017. Operating profitability maintained at appropriate level decreasing in 2018 due to compression of net interest income and reasonable growth of operating expenses. -1.0 -0.7 -5.8 2016 2.3 0.8 0.5 0.8 2017 2018 -1.2 9m2019 Financial assets impairment (charge)/reversal, UAH bln Loss/profit (net), UAH bln Net interest income preserved decreasing in 2018 due to IFRS9 effect and transformation of balance sheet structure* 61% 63% 41% 34% 4.5 4.1 2.2 1.5 1.7 1.7 3.6 2.7 2016 2017 2018 9m2019 Operating income before provisions, UAH bln Operating expenses, UAH bln Cost to income ratio, % Stable commission and dealing income. 13.7 1.2 12.3 12.1 1.1 1.1 10.4 9.5 9.8 0.9 9.3 0.5 7.5 0.5 0.5 0.4 3.2 2.8 2.2 1.7 0.7 0.6 0.6 0.5 2016 2017 2018 9m2019 2016 2017 2018 9m2019 Interest income, UAH bln Interest expense, UAH bln Net comission income, UAH bln Net interest income, UAH bln Dealing results (FX, securities and precious metals), UAH bln 2019 * reflects decrease of investment securities portfolio in 2018 as well as measures taken by the Bank to close open FX position Source: Ukreximbank IFRS financials, managerial data 10#12UKR EXIM BANK Risk-averse asset structure preserving liquidity vs marginality Interest margin constrained with cautious pace of risky operations after the 2014-2015 crisis ... ...as well as maintaining substantial liquidity cushion. 2.7% 2.0% 1.6% 1.9% 43% 44% 51% 49% 88.2% 80.0% 74.7% 68.2% 57% 56% 49% 51% 2016 2017 2018 Customer loans (net) to customer deposits Net interest margin* 9m2019 2016 Gradual improving cash generating capacity slowed down in 2019 as a result of accumulating liquidity for Eurobond repayment in April 2019. 11.2 10.5 10.7 11.0 9.3 9.1 8.1 7.7 2017 2018 9m2019 Liguid assets (cash&equivalents and Government bonds) Other assets Earnings from commissions and dealing remain stable. 1,230 1,152 1,188 1,000 508 476 478 400 1,404 1,836 701 462 548 607 584 518 2016 2017 2018 9m2019 2016 Interest received, UAH bln Interest paid, UAH bln 2019 Cash flow from interest bearing operations, UAH mln *NIM over net customer loans, interbank loans and securities 2017 2018 net commission earnings, UAH mln dealing results, UAH mln 9m2019 Source: Ukreximbank IFRS financials, managerial data 11#13UKR EXIM BANK 2019 Agenda Overview Operating results Major events in 2019 Balance sheet & Income statement summary 1 9 12 15 12#14UKR EXIM BANK Major events in 2019 17 Apr 2019 27 Apr 2019 23 May 2019 16 Aug 2019 2019 Ukreximbank and China Export & Credit Insurance Corporation (SINOSURE) signed the framework cooperation agreement The agreement stipulates that SINOSURE will provide insurance support in relation to projects applied for by Ukreximbank and contracted by Chinese enterprises in Ukraine. In particular, the support will be provided for implementation of construction projects in Ukraine and other countries in which Ukreximbank participates or operates, including projects in fields of infrastructure, agriculture, power, transportation, oil and gas, chemical industry, purchase of large-scale mechanical and electrical products and whole-set equipment, etc. The total insurance limit provided by SINOSURE for Ukreximbank will amount to USD 500 million. The loan maturity (including availability period, grace period and maturity) will be determined according to the parameters of each individual contract and may reach up to 15 years. Ukreximbank made a scheduled $375m repayment of Eurobond principal The Bank repaid 50 per cent of the principal amount of 9.625 per cent Loan Participation Notes due 2022 ("2022 Notes"). The remaining principal amount of the 2022 Notes shall be redeemed in six equal semi-annual instalments starting on 27 October 2019, with the final repayment being due on 27 April 2022. New members of the Supervisory Board were appointed 6 independent members of the Supervisory Board and 2 members representing the state (one nominated by the Parliament, and one - by the Cabinet of Ministers) were appointed and will take their office on June 14, 2019 for three years. All independent members have a substantial professional management experience in financial sector and international companies. Candidates for independent members were selected through a transparent procedure conducted by HR companies with over 10 years of international experience in hiring senior management for banks. Independent members of the Supervisory Board are: THORSTEN Paul, FISHER Steven, CHICHLO Dimitri, GORDIYENKO Olyana, KONOVETS Sergiy, MENU Dominique. Representatives from the state are: BUTSA Yuriy (from the Cabinet of Ministers) and SHULGA Alla (from the Parliament). A new loan for renewable energy and energy efficiency project financing signed with EBRD Ukreximbank and EBRD entered into a 4-year senior unsecured A/B loan of up to EUR 80 million to support renewable energy and energy efficiency projects of Ukreximbank's clients. The loan comprises an "A Loan" portion of up to EUR 40 million for EBRD's own account, and a "B Loan" portion of up to EUR 40 million for the account of participants. The project will support long-term "green" investments, compliant with industry best standards and EBRD's requirements in terms of energy generation capacity, carbon emissions and air pollution. 13#15UKR EXIM BANK Major events in 2019 (cont'd) 11 Sept 2019 14 Nov 2019 2019 The Government of Ukraine approved Strategic directions for Ukreximbank's activity in 2019-2023 The Strategic directions of activity are aimed at improving the strengths and the bank's market positions using new business opportunities and ensuring a stable level of profitability. The Bank's strategic goals and priorities for 2019-2023 are, in particular: to become a leading bank for export-import financing and corporate lending in Ukraine, in particular through retaining existing customers and attracting new clients for servicing export-import operations, as well as advisory support; ensure the Bank's activity as a leading provider of a wide range of corporate banking services for state-owned entities, large, medium and small enterprises focused on foreign economic activity, as provided in the Bank's long-term, approved and profit- oriented strategy; reduce loan portfolio in non-strategic sectors; establish stable mechanisms for funding of the Bank's operations, taking into account the current situation in the credit and money markets and the priority of reducing cost of lending and other debt instruments, offered by the Bank; examining the possibility of attracting minority investments from a strategic international financial institution. The document was developed on the basis of the Principles of Strategic Reform of the State-Controlled Banking Sector, developed by the Ministry of Finance jointly with international financial institutions and approved by the Government on 21.02.2018. Ukreximbank successfully placed new USD 100 million 9.95 per cent 10NC5 subordinated bonds. The funds raised by Ukreximbank through the issue of USD 100 million 9.95 per cent. (coupon resettable on the fifth anniversary of issuance) Loan Participation Notes, which are listed on the London Stock Exchange (LSE) and have a maturity of 10 years (10NC5 structure – callable on the fifth anniversary of issuance). J.P. Morgan and Morgan Stanley acted as a joint lead managers. The total order book for the new issue included orders from approximately 50 different investors and peaked at approximately USD 300 million. The final distribution of investors was as follows: Switzerland - 30%, the United Kingdom - 29%, the United States - 26%, other European countries - 9% and Asia - 6% in terms of geography; asset managers and funds - 61%, hedge funds - 21%, banks and private banks - 18% in terms of investor type. This transaction is the first issuance of subordinated Eurobonds by borrowers from Ukraine since 2006. 14#16UKR EXIM BANK 2019 Agenda Overview Operating results Major events in 2019 Balance sheet & Income statement summary 1 9 12 15 15#17UKR EXIM BANK Thousands of Ukrainian hryvnia Cash and Cash Equivalents Statement of financial position summary 30 September 2019 (unaudited) 26,617,536 31 December 2018 (audited) 18,545,858 31 December 2017 (audited) 19,866,217 Due from Credit Institutions Loans to Customers 278,347 62,842,960 569,890 699,739 72,496,358 67,607,544 Available-for-sale Investment Securities 48,254,711 Investment Securities designated at fair value through other comprehensive income 22,416,234 35,789,095 Investment Securities designated at fair value through profit or loss 25,398,723 26,653,561 28,072,289 Other Investment Securities Investment Property & Equipment Other Assets Total Assets Current Accounts and Deposits from Customers Loans from Credit Institutions Eurobonds Issued Subordinated Debt Other Liabilities 2,785,864 2,886,628 49,855 2,799,352 96,022 2,901,412 4,739,504 3,120,039 143,226,292 161,643,473 170,617,973 78,596,329 82,163,124 90,501,500 22,939,955 24,405,913 23,283,787 28,105,954 42,541,905 38,821,831 3,045,476 3,584,690 3,615,792 544,884 496,248 331,116 Total Liabilities 133,232,598 153,191,880 Share Capital 38,730,042 38,730,042 156,554,026 38,730,042 Revaluation Reserves Result from transactions with the shareholder Reserve and Other Funds (793,359) (816,406) 282,951 635,104 635,104 635,104 162,926 162,926 162,926 Accumulated Losses Total Equity Total Liabilities and Equity 2019 (28,741,019) 9,993,694 143,226,292 (30,260,073) (25,747,076) 8,451,593 161,643,473 14,063,947 170,617,973 Source: Ukreximbank IFRS financials 16#18UKR EXIM BANK Income statement summary Thousands of Ukrainian hryvnia Interest Income Interest Expense Net Interest Income Net Fee and Commission Income/(Loss) Net Gain/(Loss) from FX: - dealing - translation differences 30 September 2019 (unaudited) 9,253,921 31 December 2018 (audited) 31 December 2017 (audited) 12,335,686 (9,513,693) (7,520,509) 12,089,114 (9,841,373) 1,733,412 2,247,741 2,821,993 488,764 627,473 606,363 400,379 478,028 475,807 3,558,910 553,897 (907,659) Net Gain/(Loss) on investment securities at fair value through profit or loss (1,039,093) (1,422,103) 258,257 Net Gain/(Loss) from available-for-sale investment securities (49,749) Net Gain/(Loss) on investment securities at fair value through other comprehensive income, reclassified from statement of comprehensive income at redemption (7,208) (52,803) Net Gain/(Loss) from precious metals 670 Other Income 81,542 Other Net Non-interest Income/(Loss) 2,995,200 (172) 205,458 (237,695) (1,976) 186,978 (38,342) Allowance for loan impairment charge (666,076) Allowances for other impairment and provisions 18,419 (Expenses)/Reversal of expenses for the expected credit losses (1,131,643) 1,261,067 Net (Loss)/Gain on modification of financial assets measured at amortised cost (46,643) (778,755) Net Gain/(Loss) on impairment for credit-related commitments (56,338) (29,313) General & Administrative, Other Expenses (1,706,508) (2,180,551) (1,795,340) Profit/(Loss) before Taxes 2,276,244 909,967 Income Tax (Expense)/Benefit Profit/(Loss) for the Period (48) 2,276,196 (105,136) 804,831 947,017 (181,522) 765,495 2019 Source: Ukreximbank IFRS financials 17#19UKR EXIM BANK Disclaimer This presentation prepared by JSC Ukreximbank adheres to informative purposes only. This presentation and its contents are proprietary with all rights reserved by JSC Ukreximbank. Any further dissemination, reproduction, redistribution or unauthorized use of the information provided herein in whole or in part or in any form or manner without prior express consent of JSC Ukreximbank is strictly prohibited. Any information, data, opinion or forecast in JSC Ukreximbank presentation should not be deemed as official, formal or definitive, since it has not been independently verified and merely states our judgment as subject to change without notice. JSC Ukreximbank makes no representation or warranty, expressed or implied, as regards the accuracy, completeness or fairness of the information contained herein. JSC Ukreximbank, all its offices, employees, shareholder or other persons disclaim all liability for accuracy of information and data, any omissions and changes made thereof, or any expense, loss or damage incurred, directly or indirectly, as a result of using or relying upon the content, even if such parties have been advised of the possibility of such damages. Any decision is to be taken at the reader's sole discretion and must not rely on any information or forecasts provided herein. Any past performance is not indicative for future results. JSC Ukreximbank does not undertake to regularly update or modify the information provided in this presentation, or to make any corrections of errors, inaccuracies or omissions made in view of possibility of human or mechanical error. Objectivity of any opinion may be affected by conflict of interest. This presentation does not constitute or form part of, and should not be construed as an offer or invitation to sell securities of JSC Ukreximbank, or the solicitation of an offer to subscribe for or purchase securities of JSC Ukreximbank, and nothing contained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. The recipients of this information are required to consider the appropriateness of any investment decision having regard to their own circumstances, and appeal to any legal or other professional official advice, and make their own independent investigations and appraisals of the business and financial condition of JSC Ukreximbank and the nature of the securities before taking any investment decision with respect the securities of JSC Ukreximbank, and assume all the risks to be undertaken. This presentation may contain future expectations and forward-looking statements referred to the management's views, estimations, assumptions and anticipations, which comprise possible risk of material deflection of actual results and performance compared to those anticipated. Such forward-looking statements include, without limitation, any statements preceded by, followed by or including the words "targets," "believes," "expects," "aims," "intends," "may," "anticipates," "would," "could" or similar expressions or the negative thereof. These forward-looking statements, introduced as at the date of this presentation, are based on numerous opinions and assumptions regarding JSC Ukreximbank's present and future strategies and are subject to change on the back of macroeconomic and market conditions, changes in legislation and other non-specified factors. All subjects within JSC Ukreximbank structure are in no way responsible for further amending, revising or updating forward-looking statements. All data related to JSC Ukreximbank performance is based on International Financial Reporting Standards, unless otherwise specified. JSC Ukreximbank is regulated and supervised by the National Bank of Ukraine. 2019 18