#1Investor presentation IPOTEKA BANK 12 April, 2021#22 Macroeconomic outlook for Uzbekistan IPOTEKA BANK SNAPSHOT OF UZBEKISTAN REAL GDP GROWTH Y.O.Y (%) 2019 2020 2021 (f-cast) 5,4% 5,6% 5,0% 5,5% Population 33.3m 34.6m 35.0m 4,5% UZS 511.8tn/ GDP USD 57.9bn UZS 580.2tn/ USD 55.2bn UZS 608.0tn/ USD 57.8bn 1,6% GDP Growth 5.6% 1.6% 4.8% Unemployment 5.9% 10.5% 12.0% 2017 *IMF projections as of Oct-2020 2018 2019 2020 2021* 2025* Debt as % of GDP 32.8% 40.4% 42.0% UZBEKISTAN'S GDP STRUCTURE (2020) ANTI-COVID AND OTHER MEASURES & UPDATES Apr – Nov 19, 2020: • Commercial loan repayment deferrals til 1-Oct-2020. No tax on accrued & deferred loans & waiver of penalties. Cut in CBU main rate from 16% to 15% and then to 14%. . Add'l UZS2.6tn liquidity thru easing mandatory reserves. . CBU's special non-recallable credit line Nov - Apr 2021: ✓ Receipt of CBU's special non-recallable credit line (+640 bn) ✓ Subordinated debt issue was resolved (+240 bn) ✓ Cancellation of CBU's acceptable interest rates (+) ✓ Further FX market liberalization in Feb 2021 (+) ✓ Changes on capital adequacy calculation (-) ✓ Continued of the ban on dividend payments (+220 bn) 7% 8% 33% 26% 26% ■Services Industry Agriculture, forestry and fishing ■Net taxes on products ■Construction PRESENCE OF GOLD IN THE COUNTRY 1 Year Gold Price in USD/oz Last Close: 1848.64 Export composition of Uzbekistan High: 2070.05 Low: 1477.30 278.84 17.76% 2100 2050 2000 13,2% 1950 1900 38,4% 1850 1800 1750 1700 wwwww 1650 48,4% 1600 1550 1500 ■Gold ■Goods ■Services 145 Feb 20 Mar Apr May Jun Jul Aug Sep Oct Nov Dec goldprice.org Jan 21 Sunday, January 31, 2021. as of 31-Dec-2020 Sources: The State Committee of the Republic of Uzbekistan on Statistics#3Solid position across key areas (as of 01.03.21) 3 KARAKALPAKISTAN REPUBLIC . HOREZM BUKHARA NAVOI KASHKADARYA SIRDARYA DJIZZAK TASHKENT NAMANGAN IPOTEKA BANK 1 The 4th largest commercial bank accounting for 9% of sector assets and 8% of sector capital Ranked 1st in Uzbekistan by residential mortgage loans with a 30% market share ANDIJON Leader by number of corporate clients with remote access FERGHANA SAMARKAND SURHANDARYA 25 Years of Legacy >400 4,000 employees serving more than 1.3 million customers Branches, POS & Service Centers Wide Regional Presence 3.1 bn USD Total Assets 417 mln USD Total Equity Key Strengths Strong Operating Performance and Financial Position Experienced Management Team IPOTEKA BANK Solid Credit Rating Corporate Brand in mortgage market Strong Governments Support#44 Ipoteka-bank in the Banking Sector IPOTEKA BANK NIM AND COR (%) VS BANKING SECTOR as of 1 January 2021 5,8% 5,3% 4,8% 3,8% 3,9% 3,0% 2,8% 3,3% 2017 2018 Sector NIM 2019 2020 Ipoteka Bank NIM IPOTEKA BANK ROAE (%) VS BANKING SECTOR 32.5%5 as of 1 March 2021 9'99 IPOTEKA BANK TOP 10 UZBEK BANKS BY TOTAL ASSETS (UZS TN) 01.01.2020 01.01.2021 01.03.2021 34,9 49,0 49,3 34,7 NBU SQB Asaka Bank Ipoteka Bank Agrobank Xalq Bank QQB TOP 10 UZBEK BANKS BY DEPOSITS (UZS TN) 15,3 17,1 15,4 17,4% 16,1% 16,8% a 12,1% 12,7% 13,5% 12,0% 12,4% 10,3% 2017 Source: CBU based on local GAAP 5,4 ■1-Jan-20 8,8 50 Hamkor bank ■ 5,9 Microcreditb... Turon Bank ■1-Jan-21 ■1-Mar-21 965 2018 2019 Sector 2020 Ipoteka Bank 01.03.2021 NBU UzSQB Xalq Ipoteka Agro Asaka UZKDB Aloqa bank bank bank bank bank bank QQB Kapital bank 2,8#55 Loan Portfolio Overview (1-Mar-2021) LOAN PORTFOLIO SPLIT IPOTEKA BANK LOAN PORTFOLIO BY COLLATERAL TYPE Equipment and inventory 9% State guarantee 7% By sectors By segments Others 5% Textile 4% Agriculture 10% 29% Corporate Trade & Finance 9% Letters of surety 8% Construction 6% 28% SME Insurance 5% Other 5% Real estate 66% Individuals 43% 43% Retail Manufacturing 23% LOANS TO TEN LARGEST BORROWERS (UZS BN) 54% 9 350 2018 37% 20% 19% 7 473 2019 I Loans to top 10 borrowers 4 861 4716 2020 1 March 2021 % of gross total loans#6Financial results for 2020 NET PROFIT, NET INTEREST INCOME (UZS BN), NIM 3,0% 242 3,8% 279 554 250 2017 2018 5,3% 5,8% 1395 1 030 430 483 2019 I Net interest income before provision Net profit Net Interest Margin (%) REVENUE OVERVIEW (UZS BN) 790 922 IPOTEKA BANK CONTRIBUTION OF BUSINESS AREAS TO TOTAL OPERATING INCOME 17,3% 22,9% 2020 UZS 1.9 tn 2020 23,1% 1 430 1 947 ■ Corporate SME Retail 36,7% Others OPERATING EXPENSES STRUCTURE (2019-2020) 7% 77 8% 7% 256 6% 39 219 3% 4% 148 4% 213 5% 28 2020 104 9% UZS 659 bn 269 236 1 395 8% 38 1 031 2019 241 554 69% 242 69% 2017 2018 2019 2020 ■Net gain from foreign exchange translation Other operating income 2020 ■Net fee and comission income ■Net interest income ✓ Total Operating income 6 ■Staff costs ■Rent and maintenance of property Stationery and Supplies Sponsorship and advertising Depreciation and amortisation ■Other operating expenses#7Covid-19 impact and response (1-Mar-2021) COVID-19 IMPACT ON ASSET QUALITY (UZS BN) (local GAAP) 4,4% 3,0% 1 063 2,3% 1,8% 1,3% 623 633 547 496 347 290 281 221 175 129 17 2018 2019 1H 2020 203 2020 513 815 1 March 2021 CBU'S APPROACH ON TREATMENT OF NPLS O O CBU's approach: Higher conservatism in treatment of the NPL IPOTEKA BANK Step forward towards reducing the gap between IFRS and local GAAP (including on treatment of the NPLs) Our position: With adjustments generally in line with our initial forecasts Impact is manageable: ◉ ◉ Fully collateralized mortgage portfolio Stronger NPL management measures Prudence and transparency backed maximizing the auto-calculation of NPLs 190+ overdue NPLs Provisions 1) NPLs as a proportion of the gross loans to customers NPL Ratio (%) Analysis of repayment of extended loans Loans Indicators Total renewed clients (01.04.2020) (fully repaid loans) repaid ahead of schedule (till 01.01.2021) Total renewed clients (01.01.2021) Split of the renewed clients: Clients who paid off the main debt, despite credit holidays (ahead of the renewed schedule) Clients whose cash receipts increased in 2020 compared to 2019 (as per renewed schedule) Businesses that have sufficient credit collateral, sufficient cashflows for monthly payments & other businesses (as per renewed schedule repaying as per schedule) Potentially new NPLs Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Quantity Amount Total: 8 739 6 007 495 1 646 924 525 7 093 5 082 970 2 595 1 608 524 2 365 2715 625 1 978 625 614 155 133 506 7#8Stable funding, diversified deposit base FUNDING BASE BREAKDOWN (UZS BN) 57%143% 7 899 70% 30% +9% 7 671 3 242 UZS share | Other currencies DEPOSIT BASE BREAKDOWN 57% 43% 57% 43% +12% +42% 9 292 9616 By type By segment Savings 3% 8 565 8 187 IPOTEKA BANK 2 405 6 759 7 787 9 499 9 554 1 081 496 1 105 1 157 2018 2019 2020 1 March 2021 Term deposits 51% Borrowings from Government and the State ■Domestic and International Financial Insitutions ■Customer accounts ■Other Corporate 68% TOP TEN DEPOSITORS (UZS BN) 57% 1 253 2018 8 50% Other deposits 22% SME 12% 44% 37% 4 736 4 160 2 890 2019 top 10 depositors 2020 1-Mar-2021 % of gross total deposits Demand deposits 24% 20% Retail#9Strong shareholder support IPOTEKA BANK SHAREHOLDER COMPOSITION As of 1-March-2020 UZS 2.9 tn The UFRD and Ministry of Finance OUR EXPECTATIONS FOR 2021 ☐ UZS 100 bn tax privileges (as MOF capital) ☐ Conversion of UZS 360 bn IFC loan to capital □ Negotiations with potential strategic investor to sell state-owned equity 92,2% CAPITAL INJECTION FROM THE GOVERNMENT (UZS BN) Increase resulting from UFRD and MOF transaction in 2H 2019 comprising the equity injection and reduction of exposure on low- margin loans and reduction of RWA 1 832,0 CAR is expected at min. 15% (end of 2021) 542,1 139,6 52,4 2017 2018 2019 2020 9#10THANK YOU 30 Shakhrisabz str., Tashkent, 100000 www.ipotekabank.uz For contact: [email protected]#11Gap Analysis & FX position (1-Mar-2021) DURATION OF ASSETS VS LIABILITIES (UZS BN) 1 838 TOTAL FX POSITION DYNAMIC Over 2 years 15 401 From 12 months to 2 years From 3 to 12 months. 763 1 809 2 572 124 3 684 3 808 1 666 40 Less than 3 months 7 568 9 234 20 Total financial liabilities Total financial assets 0 G-BONDS PORTFOLIO, BLN. UZS 652,7 760,4 IPOTEKA BANK Amount 140 17 239 29% 120 100 80 17% 16% 60 Pct CB requirement (max) Trend line 35% 30% 25% 20% 15% 11% 7% 10% 5% 0% IT 01.01.2020 01.04.2020 01.07.2020 01.10.2020 01.01.2021 01.03.2021 OVERALL LIQUIDITY POSITION ✓ Net MM Donor Status ✓ Additional liquidity buffer: O G-bonds (+250 bln) CBU non-recallable credit line (+640 bln) 913,4 760,4 01.07.2020 01.10.2020 01.01.2021 01.03.2021 11#1212 KEY INDICATORS ROA 1,6% 1,8% 1,8% 2,2% ■2018 17,4% 16,1% ROE 12,1% 16,8% IPOTEKA BANK 14,0% 42,3% 33,9% 53,2% CIR REGULATORY CARS DEVELOPMENT, % 25,6 Total CAR Total CAR mandatory min 22,0 Tier I CAR 19,0 Tier I CAR mandatory min 17,0 17,0 20,0 19,2 15,2 16,8 14,5 13,2 13,1 ■ 2019 2020 1 March 2021 LCR DEVELOPMENT 294% 228% 206% 180% 324% 223% 100,0% 13,0 10,0 1-JAN-20 1-APR-20 1-JUL-20 1-OCT-20 1-JAN-20 1-MAR-21 NSFR DEVELOPMENT 122% 111% 111% 107% 105% 102% 01.01.2020 01.04.2020 01.07.2020 01.10.2020 01.01.2021 01.03.2021 01.01.2020 CBU requirement LCR 01.04.2020 01.07.2020 01.10.2020 01.01.2021 CBU requirement 01.03.2021 NSFR 100%#13Privatization 13 2020 USD 35 mln. loans received from IFC 2nd stage of transformation 2022 IPOTEKA BANK 2021 Sale of the state-owned shares to a strategic investor (as per the Roadmap) Conversion of IFC's USD 35 mln. loans to Bank's share (~11%) Search for a strategic investor