Investor Presentaiton

Challenging reforms start bearing fruit (1/2) Public governance Public finance Business climate Key areas Parliament: pro-Western parties held majority of mandates after the snap elections ▷ Decentralization: transfer of budgetary powers to local self-government bodies - total of 878 newly amalgamated communities ▷ Anti-corruption: full anti-corruption infrastructure in place Taxation: decrease in number of taxes and reduction in tax rates Debt management: MTDS, return to markets, significant involvement of international investors and effective investor relations Medium-Term Budget Planning introduced ▸ Public expenditures and procurement: electronic procurement system fully effective ▸ Foreign trade: DCFTA in full force, FTA with Israel signed in early 2019, FTA with Turkey under negotiations ▸ Competitiveness and Deregulation: a great leap forward in international rankings ▸ Investment climate: introduction of effective mechanisms for dealing with bankruptcy LTM1 update High Anti-Corruption Court (HACC) commenced its operations (Sep 2019) ⚫ New Supervisory Boards in state- owned banks commenced their work (June 2019) • 38 judges were approved to the HACC and its Appeal Chamber (April 2019) ⚫ Link between Clearstream and NBU depository launched (May 2019) • Resolution on State Fiscal Service and State Customs Service reform with appointment of respective heads in May and July 2019 ⚫ Fiscal stability: timely adoption of 2019 State budget and in line with IMF requirements (November 2018) • SME Development Office launched (July 2019) Regulations on improvement of Doing Business ranking adopted by the CMU (March 2019) Bankruptcy Code to protect creditors' rights and streamline bankruptcy procedures (October 2018) Selected results 91% increase in revenues of local budgets in 2018 vs 2015 50 directorates with 1,305 new reform staff positions in civil service 751 criminal proceedings by NABU with 212 cases filed to the courts 14-fold increase in non- residents' domestic government bond portfolio to US$ 3.4bn since the beginning of 2019 61% of GDP-state and state-guaranteed debt in 2018 (vs 81% in 2016) 11 number of taxes (vs 22) Ease of Doing Business ranking improvement to 71st in 2018, 41 places up from 2014 UAH 1.6bn Privatization proceeds transferred to state budget in 2018 Sources CMU, Ministry of Finance, NBU, NABU Notes 1 LTM last twelve months September 2019 13

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