1. E R S T E G R O U P 4 th VIENNA ECONOMIC FORUM 5. -6. November 2007 Financing Solutions for Infrastructure Financing Johannes Kinsky, Member of the board, Erste Group

2. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 2 Presentation topics − Introduction − Market/Potential

3. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 3 Introduction – Is Erste Group a pure retail bank? − From a first perspective most would agree, however − Currently the large corporate and international business accounts for about 19% of the group’s risk weighted assets − Nevertheless large corporate and international business is already highly efficient and profitable − Group Corporates & Investment Banking (GCIB) already makes a significant contribution to the group’s success − Result of successful expansion efforts shows that we can do it (e.g. real estate, ECM & DCM in Austria, M&A in Czech Republic, structured finance)

4. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 4 Presentation topics − Introduction − Market/Potential

5. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 5 Market/Potential Focus on Infrastructure Finance − European Action of Growth identified 30 priority ten t projects amounting to an estimated EUR 225 billion of total investment cost − European Council agreed for the period 2007 – 2013 on Cohesion for growth and employment EURO 347 Billion Cohesion Policy Annual EU funding (2007 – 2013 ) in Billion EURO Source: EU

6. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 6 Market/Potential Focus on Infrastructure Finance Annual EU Cohesion policy funding in selected markets (2007 – 2013) in Billion EURO Source: EU European Council agreed funds with an volume of EURO 347 Billion for the period 2007 – 2013 on Cohesion for growth and employment

7. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 7 Market/Potential Focus on Infrastructure Finance Railway km per 100.000 inhabitants in relation to GDP per capita UA RS RO CR SK HU AT CZ Potential for upgrading the network and new HSL lines Source: ERSTE Research and National railway companies The size of the bubbles are determined by each country‘s GDP

8. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 8 Market/Potential Focus on Infrastructure Finance Km roads per 100.000 inhabitants in relation to GDP per capita UA RS RO SK HU AT CZ CR Source: ERSTE Research and Transportation ministries Potential for upgrading and extension of the network

9. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 9 Market/Potential Focus on Infrastructure Finance Source: EU Research and World health organization Public hospital beds in relation to GDP per capita UA RS* RO CR SK HU AT CZ *There is no data available on health expenditure in Serbia. Potential to improve medical care (acute centers,new hospitals, retirement facilities)

10. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 10 Market/Potential Focus on Infrastructure Finance − Funding requirements needs additional funding sources − JASPER − JEREMIE − European Investment Bank (EIB) − European Bank for Reconstruction and Development (EBRD) − European Investment Fund (EIF) − IFC − Innovative financing mechanisms − Grant Programmes − Special-purpose funds − Commercial funding agencies − Public – Private - Partnership − Penion funds and other large institutions − Diversify and expand traditional revenue-raising sources

11. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 11 Market/Potential Focus on Infrastructure Finance − Liaison with multinational financing agencies (EIB, EBRD, IFC) and EU-entities i.E. − European Comission − DG Engergy and Transport (DG TREN) − DG Market (Tenders) − DG Regio − European Agency for Reconstruction to increase infrastructure finance activities − Support for applications of EU funds (European Regional Development Fund, Cohesion Fund…….) − Assistance in preparation of bankable project − PPP advisory

12. E R S T E G R O U P 4 th VEF - Vienna 5. November 2007 Group Corporates & Investment Banking EB Group Financing Solutions 12 Thank you very much for your attention