1. Banking considerations for foreign investors in Albania
Karl Sevelda,
Member of the Board

2. The Raiffeisen Banking Group: Three-tier structure
Raiffeisen Banks
557 Raiffeisen Banks, 1,695 Affiliated Branches
Regional Raiffeisen Banks
8 Regional Raiffeisen Banks, Zveza Bank
Interests in Austrian
Financial Institutions
Insurers, Investment Fund
Companies, Finance Leasing
Companies, Building Society,
Raiffeisen Centrobank,
Kathrein&Co., Nationalbank,
Kontrollbank, VISA, Europay, etc.
The Network in Central
and Eastern Europe
Raiffeisen International
(Shareholders: 68.5% RZB,
31.5% Free Float)
Network Banks,
Leasing Companies,
Other Subsidiaries
Other Foreign Branches,
Offices and
Equity Participations
Branches,
Representative Offices,
Banks
Specialist Companies
and Back-Office Companies
Payment Transfer and
Securities Settlers,
IT Companies, Real-Estate
and Trading Companies,
Private Equity Company, etc.

3. RZB Group one of the world's 100 biggest banks delivering strong figures
> 14 million customers
> 61,000 employees
> 3,000 outlets
31/12/ /12/2006
Assets (€ bn)
RoE before tax (%)
Profit before tax (€mn) 1, ,286
Customers (mn) >12
Staff 61, ,434
Outlets 3, ,866
36 markets
1 group
RZB GROUP

4. Asset growth of RZB AG and RZB Group

5. Local ranking by total assets
Picture: HO RB Albania
# 1 Albania, Raiffeisen Bank
# 1 Serbia, Raiffeisen banka
# 2 Bosnia and Herzegovina, Raiffeisen Bank Bosna i Hercegovina
# 2 Kosovo, Raiffeisen Bank Kosovo
# 2 Ukraine, Raiffeisen Bank Aval
# 3 Belarus, Priorbank
# 3 Bulgaria, Raiffeisenbank (Bulgaria)
# 3 Romania, Raiffeisen Bank
# 3 Slovakia, Tatra banka
# 4 Croatia, Raiffeisenbank Austria
# 5 Czech Republic, Raiffeisenbank & eBanka
# 6 Hungary, Raiffeisen Bank
# 7 Russia, Raiffeisenbank Austria & Impexbank
(largest international banking group)
# 10 Slovenia, Raiffeisen Banka
# 12 Poland, Raiffeisen Bank Polska
THE SUCCESS STORY

6. RB Albania 2004 2007 Difference in %
Total assets: EUR 1,647 mln EUR 1,947 mln %
Total loans: EUR 7.5 mln EUR 486 mln ,380.0%
Total liabilities: EUR 1,605 mln EUR 1,860 mln %
Number of employees 1, , %
Number of branches %
Number of customers 300, , %
Debit cards 6, , ,653.8%
ATM %
POS N/A n.a.

7. International Desk Concept
Account opening services
Working Capital Finance
Financing long-term investments
Financing acquisitions and/or start-ups
Cash management services
Trade Finance (L/C, L/G etc.)
Export Finance with export promotion programs
Project & structured finance/Real Estate
Investment products
Leasing / Factoring
Personal banking services for customers' employees
FX Business
15 MARKETS, ONE SERVICE LEVEL

8. Other value adding services
English speaking staff
Mrs. Adriana Jorgji/ Head of Int. Desk Albania
Tel.: – 2545
Contacts to local authorities
Referral of CPAs and law firms
Support in founding a business
Search of suitable production sites and objects
Subsidy programmes
Networking and lobbying
15 MARKETS, ONE SERVICE LEVEL

9. Albania – A lot of room/need to catch up!
110%
Spain
100%
Greece
90%
80%
70%
Portugal
60%
50%
40%
30%
20%
10% 0% PL HU CZ SK SI RO BG HR RS BA AL RU UA BY CE
SEE
CIS
2000
2007
GDP per capita (at PPP) in % of EU-27 avg
Source: wiiw, Raiffeisen RESEARCH

10. High GDP growth rates
Source: Raiffeisen RESEARCH

11. To be considered for investors …
Standard of legal system/ Independency of justice
Bureaucratic procedures (registration of land ownership, approval of construction permissions, etc.)
Lack of infrastructure (Poor roads, electricity/ power cuts, ..)
Low Standard of Social System

12. Positive factors to be considered
Upcoming privatization process
High GDP growth rates
Efforts to reduce administrative obstacles
Fast registration of business (8 days)
10% corporate tax
Signed Double Taxation Agreement with Austria (in force by 2009/01/01)

13. Thank you for your attention!