Our Management A Strong Team! (I) Raiffeisen Bank Aval Strategy and Business Development. Volodymyr Lavrenchuk, CEO Raiffeisen Bank Aval

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1 Raiffeisen Bank Aval Strategy and Business Development Volodymyr Lavrenchuk, CEO Raiffeisen Bank Aval Our Management A Strong Team! (I) Lubomir Pokorny Retail Arthur Iliyav I (Multinationals) Gerhard Boesch Treasury & Investment Banking Volodymyr Lavrenchuk Chief Executive Officer Victor Gorbachov II (Local Companies) Grigoriy Sheludko Security & Legal Rainer Sichert Transformation & Strategy Igor Volokh IT & Operations Business units Functional units 2 Investor's Handbook Strategy & Business Development Page 5

2 Our Management A Strong Team! (II) Volodymyr Lavrenchuk, CEO 24 years in the banking industry Native Ukrainian Top management positions in Ukrainian banks Board Member of Raiffeisenbank Ukraine CEO of Bank Aval since October 2005 Lubomir Pokorny, Retail 12 years in the banking industry Previous jobs at McKinsey, Deutsche Bank and IFC MBA from a US business school Russian speaking retail specialist Victor Gorbachov, I 12 years in banking with Bank Aval Native Ukrainian Extensive experience in corporate banking Very well connected in the Ukrainian industry Arthur Iliyav, II 11 years in the banking industry Educated in Vienna Russian speaking corporate specialist Board Member for corporate customers in Priorbank (Belarus) from 2003 till 2005 Gerhard Bösch, Treasury & IB 16 years in the banking industry Formerly Head of Global Treasury & Markets at RZB Russian speaking Treasury specialist Igor Volokh, IT/Ops 13 years in the banking industry Operations and IT specialist with technical and legal education Board Member for IT/Ops in Priorbank (Belarus) from 2000 till 2005 Board Member of Bank Aval since 2005 Grigoriy Sheludko, Security 12 years in the banking industry Formerly worked for the Ministry of Internal Affairs Board Member of Bank Aval since 1995 Native Ukrainian Rainer Sichert, Transformation 14 years in the banking industry Responsible for integration of BPH Bank and PBK in Poland Specialist in transformation Extensive experience in retail banking Board Member since the beginning of Aval A Strong Network... Large network......with wide regional coverage More than 1,300 branches branches in Kiev alone 3.6 mn Customers (2) ~220K Legal Entities 86 8 regions with more than 50 branches More than 16,000 FTE in regions (1) (1) Headcount data as of December, 2005 based on HR internal reporting (2) Date as of 1H x Number of branches 4 Investor's Handbook Strategy & Business Development Page 6

3 ... with a Strong Position in the Market Top Brand Recognition High Market Shares (2) Aval s name awareness (1) 100% Loans 15% 86% Awareness PI Deposits 11% 62% Spontaneous 24% Top-of-mind & SME Loans Deposits 6% 7% (1) Survey results (~ 5,000 respondents) (2) 30/06/ Source: GFK research, National Bank of Ukraine, Aval 5 Dominant Player in Ukrainian Banking Market Competitive Landscape Privatbank () Share in retail deposits (%) Oschadbank (#4) Aval (#2) Ukrsotsbank (#3) 4 2 Ukrsibbank (#5) Share in retail loans (%) 1 bn Total volume (loans and deposits) 1H 6 Investor's Handbook Strategy & Business Development Page 7

4 Aval in Figures Financial Performance in mn 30/06/ 31/12/ 2005 (1) Total Assets 3,493 3,141 Loans to Customers 2,692 1,995 Deposits from Customers 2,228 2, / 1-12/ 2005 (1) Operating Income Operating Expenses Provisions Profit before Tax Profit after Tax Financial Ratios 1-6/ 1-12/ 2005 (1) Cost/Income Ratio 62.9% 67.9% ROE before tax 14.4% 11% ROE after tax 10.8% 5.2% (1) These figures differ from the figures originally published due to changes by the auditor. 30/06/ 31/12/ 2005 Number of Branches 1,342 1,342 Number of Employees 16,857 16,645 7 The Ukrainian Banking Market Unmatched Growth PI Deposits (1) in bn Personal Credits (2) in bn CAGR=58% CAGR=114% e (3) e (3) Mortgage Loans in bn CAGR=140% e (3) But will current growth rates prevail in the future? (1) Term + sight deposits (2) Without mortgage loans (3) Annualized results of 1H Source: Ukrainian Mortgage Association, Association of Ukrainian Banks 8 Investor's Handbook Strategy & Business Development Page 8

5 Future Market Development Overall Market Clients and Products GDP will continue to grow strongly with negative scenarios less likely and having rather limited impact Falling inflation and aggressive entry of foreign players will put pressure on margins Ukraine top 7 regions will continue to account for bulk of business and revenue potential Dynamic growth of loan book will require a higher volume of deposits Increasing demand for more sophisticated products & services Personal loans and SME loans will become key components of future market revenue pool Affluent customers will constitute majority of future deposit growth Strategic Thrust 9 Example: Personal Loans Ukrainian Market Historical and Expected Development of Personal Loans in the Ukrainian Banking Market Personal loans (1) /capita ( ), , , Ukraine e Bulgaria Ukraine 2005 Serbia Ukraine 2003 Ukraine 2002 Ukraine 2010e Croatia Poland Estonia Latvia Slovakia Russia Romania Ukraine 2004 Hungary Lithuania Portugal Greece Slovenia Czech Republic France Germany Spain Finland Netherlands Austria Sweden Italy R 2 = 0.86 Denmark Ireland Belgium European countries Ukraine , , , , , , , GDP (ppp)/capita (2) ( ) (1) Without mortgage loans (2) GDP corrected with share of grey economy as percentage of official economy. For Ukraine grey economy factor is 52% Source: BCG analysis 10 Investor's Handbook Strategy & Business Development Page 9

6 Dual Strategic Focus for Our Businesses Client Focus Product Focus Target client segment Focus to improve our value proposition Product focus Current rank 2010 Mass PI Mass affluent & affluent Attractive branches, convenient locations Excellent client service, e.g. time-to-credit Channel mix, e.g. consumer finance Flagship branches, special zones Dedicated products (investments, mortgage loans) Experienced, well trained employees Personal loans Mortgage loans #2 Rank Revenues (proportional) VIP SME micro Special upscale VIP branches Tailored asset management product offering and highly individualized service Dedicated account managers Car loans Credit cards /2 #2 Experience in SME servicing Use of wide network for servicing Personal deposits #2 SME small middle market Large corporates & MNC Dedicated account managers Specialized SME product offering Already strong position (agribusiness) Large network, reliable partner Strong product experience and top service International partner with financial strength Experience and expertise with sophisticated products SME loans SME deposits loans deposits n/a n/a #3 #4 Top 3 Top 3 11 Investor's Handbook Strategy & Business Development Page 10