Deposit Guarantee Fund

1. Deposit Guarantee Fund Resetting the Ukrainian economy via distressed assets sale

2. Introduction to the Deposit Guarantee Fund (the DGF) Key figures • Governed by the dedicated Law «On Households Deposit Guarantee System» (2012) • Two main functions: deposits payout and winding down insolvent banks • 73 banks declared insolvent out of Ukraine’s total of 184 as of 2014, including 40 banks in the last two years • Insolvent banks’ assets total UAH 433.4bn (USD11.4bn) or 1/5 of Ukraine’s GDP • Around 1/3 of assets pledged to Ukraine’s Central Bank under UAH53.0bn (USD2.0bn) refinancing • Huge cash flow gap - UAH51.3bn (USD2.3bn) deposits payout but UAH1.0bn (USD46.0m) worth of assets sold in 2015 • April 2016 – the asset sale process consolidated at the DGF level – new disclosure and transparency rules Top-5 banks in the loan book by value Loan book breakdown

3. Key elements of the new disclosure process BEFORE NOW Due diligence • Minimum 21working days (30 calendar days) • Minimum 10 calendar days • Only the number of the credit agreement • No collateral info • Brief asset profile • Teaser presentation for all loans over UAH100m (USD4.0m) Information disclosure • 32 electronic trading platforms (all local) • Considering international platforms, blockchain technology, own trading interface Trading platform Access to information • Selective disclosure to market participants • Simultaneous public disclosure on the website • Email alert to all registered investors • Uniform asset sale procedure • Asset sales policy (work-in-progress) Assets sale • Bank-defined procedures • Physical, all documents in electronic form • Considering launching VDR • Physical paper documents in the bank Data Room

4. Public info disclosureonwww.torgi.gov.ua - Email alerts from SALES@FG.GOV.UA - Lists of all physical and loan assets of insolvent banks The name of the borrower can not be disclosed - banking secrecy Starting sales value Loan summary Auction summary Teaser presentation for loans in excess of UAH100m by book value

5. Case 1: NPL – sunflower seeds crusher Loan, ‘000 Collateral, ‘000 • Operating business entered the default after the bank declared insolvent • Good quality collateral Bidding Collateral photos Bank: Forum • Marketplace (Trading platform): SETAM https:// setam.net.ua Date of auction: June 2016 Starting sales value: UAH215m (USD8m)

6. Case 2: NPL - the greenhouse business Loans, ‘000 Collateral, ‘000 • Operating business entered the default after the bank declared insolvent • Good quality collateral Bidding Collateral photos Bank: Kyivska Rus • Marketplace (Trading platform): SETAM https:// setam.net.ua Date of auction: June 2016 Starting sales value: UAH80m (USD3m)

7. Case 3: NPL - battery producer Loans, ‘000 Collateral, ‘000 • Default and bankruptcy of the borrower • Good quality collateral Bidding Collateral photos Bank: VAB 25% stake in DNEPROPETROVSK AGGREGATE PLANT • Marketplace (Trading platform): • UKG 52 ha Date of auction: June 2016 Starting sales value: UAH107m (USD4m)

8. Case 4: NPL - Industrial fittings producer (gas sector) Loan, ‘000 Collateral, ‘000 • Default and bankruptcy of the borrower • Seriously impaired collateral Bidding Collateral photos Bank: Brokbiznesbank Marketplace (Exchange): "SP YUSTITSІYA" https://sp-ust.in.ua Date of auction: June 2016 Starting sales value: UAH45m (USD2m)