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Investor Presentaiton

Challenging reforms start bearing fruit (2/2) Financial sector Energy sector Key areas ▸ Monetary policy: inflation-targeting framework ▸ Banking sector: sector clean-up, currency controls liberalization NBU role: enhancement of the NBU's supervisory and regulatory role ▸ Energy sector diversification: intensified domestic extraction and complete substitution of Russia in favor of the EU for gas imports since late 2015 Liberalization of energy markets: transition of electricity market to European model, increase in levels for gas and heating tariffs, elimination of operational deficit of Naftogaz of Ukraine "The Ukrainian authorities have successfully restored macro-economic stability and growth, with support from the international community. Prudent fiscal and monetary policies and a flexible exchange rate regime have helped reduce fiscal and current account deficits. Reserves have been partly rebuilt and confidence has improved." Mr. David Lipton, First Deputy Managing Director of the IMF December 18, 2018 Sources CMU, NBU, Prozorro, Naftogaz, Financial Times September 2019 LTM update • New liberalized currency regulation system became effective (February 2019) Recommendations for State- Owned Banks on Treating Non- Performing Loans (January 2019) • NBU Macroprudential Policy Strategy to reinforce Ukraine's financial system (December 2018) Two oil and gas licensing rounds conducted (March and May 2019) • Start of debt enforcement process by Naftogaz following its victory over Gazprom in Stockholm Arbitration (February 2019) Bringing gas prices for households closer to market level (April 2019) Selected results 103 banks withdrawn from the market over 2014-2019 UAH 23.4bn record high profits posted by the Ukrainian banking sector in January - May 2019 US$ 2.56bn financial gain in Stockholm Arbitration 2.3% CAGR in SOE Ukrgazvydobuvannia's gas extraction volumes (2015- 2018) "The government in Kiev can justifiably claim to have made more progress with structural reform in just four years than any administration since the country gained its independence in 1991." Financial Times, Special Report Investing in Ukraine September 12, 2018 BA 14
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