1. PIVDENNYI BANK GROUP
INVESTOR PRESENTATION April 2017

2. Brief profile
Founded in 1993 PIVDENNYI Bank (Bank) is a strong regional player, second largest Ukrainian Bank with private capital by total assets, gross loan portfolio and households deposits.
Bank has it’s head office in Odessa with 110 outlets in 18 regions of Ukraine, 277 ATMs and point-of-sale (POS) terminals. In 2016 the Bank opened new outlet in Poltava.
Bank serves over corporate and SME customers and over individual customers.
PIVDENNYI Bank Group is comprised by PIVDENNYI Bank in Ukraine and Bank’s subsidiary Regional Investment Bank (RIB) in Latvia with a representative offices in CEE countries.
PIVDENNYI Bank Group has an experienced and stable management team with over employees.
Small and Medium enterprises have traditionally been the main business line of the Bank.
Bank remains profitable despite the difficult situation in Ukrainian Financial Sector.
Bank has successful experience in attracting 4 syndicated loans on debt capital markets and debut Eurobond issue.
For many years Bank has successful experience of cooperation with "Big Four“ international audit companies : PwC, Deloitte, Ernst & Young and KPMG and international rating agencies: Moody's Investors' Service and Fitch Ratings.
Bank actively promotes the development of port infrastructure in the Odessa region, participates in financing the construction of a new grain terminal with the capacity of about 3 million tons in Odessa Marine Trade Port.
Bank acted as financial partner in the largest M&A transaction in the sugar sector of the acquisition of six sugar factories in Ternopil region.
Bank meets the high requirements of the Ukrainian Deposit Guarantee Fund having the agent status and regularly carrying out payments to depositors of insolvent banks.
In 2016 National Bank of Ukraine approved the capitalization plan of PIVDENNYI Bank and the new edition of the Statute of the Bank, according to which the share capital is increased by UAH 252 MIO.
In 2016 Bank made an early and full repayment of stabilization loan in the amount of UAH 542 MIO from NBU.
In 2016 Bank successfully repaid subordinated loan from KfW, total amount of the loan principal and interest was USD 27 MIO.
Bank successfully implemented a new ABS “B2”, that helped to improve customer services, and provide customers with new innovative products.
Bank is actively developing remote service channels: successfully implemented «3D Secure» technology, which increases the security of online payments, successfully launched a full-featured mobile application. 2 2

3. PIVDENNYI Bank. Historical overview
23 years
of successful work
First commercial Bank in Ukraine to issue customer bonds
Visa International associated member
First underwriter deals for customers
European Business Assembly’s Gold Trade Mark of Ukraine, Brand of the year and other nominations
The subordinated loan from KfW in the amount of USD 27 MIO was repaid. (principal amount and interest)
Opening of new outlet in Poltava
Stabilization loan from NBU repaid fully and ahead of schedule (UAH 542 MIO)
Migration to the new transaction S.W.I.F.T. platform has been completed
The Bank acted as financial partner in the largest M&A transaction in the sugar sector
New Head Office premises
Licensed for precious metals trading
First factoring and leasing transactions
Winner of World Bank’s tender for project SASM in Ukraine
Obtained three syndicated loan in USD: 25 MIO, 45MIO and 30 MIO
Bank’s 9,98% acquisition by Sweden Explorer Financial Institutions Fund East Capital
Fourth USD 46 MIO syndicated loan was obtained with over 1.5x oversubscription
First in Ukraine a 5-year USD 20 MIO special SME finance bilateral loan was obtained from Black Sea Trade and Development Bank
Debut USD 100 MIO Eurobond was repaid in full at maturity
Bank won a tender from the Ministry of Finance of Ukraine on the EIB loan servicing for the construction of high- voltage line Rivne-Kyiv
Bank has opened new regional branches in Cherkassy and Ternopol
Acquisition by current Beneficial Owners
1993
1994
1997
Successful AML examination by F.A.T.F. commission resulting in Ukraine’s exclusion from F.A.T.F.’s “Black list”
Foundation
Member of S.W.I.F.T.
Member of Interbank Currency Exchange
Member of Professional Association of Registrars & Custodians
Associated member of Europay Int.
Thomas Cook dealer
First IFRS FS confirmed by PwC
3-year USD 100 MIO debut Eurobond issued
Debut USD 25 MIO International syndicated loan paid out
PIVDENNYI Bank Group was created with assets over USD 1 Billion
Acquisition of the Regional Investment Bank (‘RIB’) in Latvia
Capitalization of dividends in amount of UAH 155 MIO
EUR 3,8 MIO subordinated debt received from East Capital
USD 14 MIO Subordinated loan received from KFW
USD 46 MIO syndicated loan was repaid and all maturing in bilateral loans
Opening of new outlets in Khmelnitsky and Mukachevo
Repaid long-term loan in the amount of USD 20 MIO received in 2008 from Black Sea Trade and Development Bank
ABS “B2” is implemented
Capitalization of dividends in amount of UAH 252 MIO
Bank has become an agent of the Ukrainian DGF
The Bank provides financial support in the construction of a new grain terminal in Odessa Commercial Sea Port
Bank entered the top 5 ranking "Financial Oscar " magazine "Business" in nomination "Corporate Partner“
A fully-functional mobile application was successfully launched
Source: Pivdennyi Bank

4. Group’s shareholder structure
Yuriy A. Rodin
Was born on January 21st, 1950, in Odessa.
Resident of Ukraine, domiciled in Odessa.
Higher education – master of mathematics, certified in assets management by State securities and fund market commission
Mark Is. Bekker
Was born on May 11th, 1945 in Vladivostok, Russia
Resident of Ukraine, domiciled in Odessa
Higher education, degree in refrigeration technologies engineering
Founded in 1997, East Capital is a leading, independent asset manager specializing in Eastern European financial markets. The company, which is headquartered in Stockholm, with offices in Paris, Tallinn, Moscow, Oslo, Hong Kong and Milan,
Chairman of Supervisory Board, main shareholder and the ultimate controlling party of JSB “Pivdennyi”
Chairman of Supervisory Board and the ultimate controlling party of A/S Regionala Investiciju Banka
Owns major stakes in a number of holding’s companies
East Capital Explorer Financial Institutions Fund
Deputy Chairman of Supervisory Board and shareholder of JSB «Pivdennyi»
Deputy Chairman of Supervisory Board and shareholder of A/S Regionala Investiciju Banka
Owns major stakes in a number of holding’s companies
The East Capital Financial Institutions Fund is a EUR 500m private equity fund, which makes equity investments in companies within the financial sector in Eastern Europe ,
Pivdennyi Bank
+ entities under control
+ family members + entities under control
23,6%
53,7%
10%
12,7%
14,8%
9,6%
+ entities under control
59,0%
Other Minority Shareholders
16,6%
Other Minority Shareholders
Regional Investment Bank

5. (independent director) (independent director)
Supervisory Board
PIM DE BRUIJN
(independent director)
MARGOT JACOBS
(independent director)
YURIY RODIN
MARK BEKKER
MYKHAYLO CHORNYY
Deputy Chairman of Supervisory Board of JSB “Pivdennyi”
Deputy Chairman of Supervisory Board of A/S Regionala Investiciju Banka
Major owner in a number of holding’s companies
18 years with ABN AMRO, entirely international
10 years as an independent management consultant
Partner at COB Europe LLC
Senior Consultant at Contractor for ING IGA
Associate Consultant at The Communications Group
RAO and Manager of Ops/IT at ABN AMRO Bank NV
• PhD in law in specialty "Theory and history of state and law; history of political and legal doctrines"
• Since 2014 – Advisor of Chairperson of the Board of JSB “Pivdennyi”
• Member of the Supervisory Council of JSB “Pivdennyi”
Senior Advisor
More than 14 years of experience in the banking sectors of Russia and Eastern Europe
Joined East Capital in Previously held senior positions at UFG and Charlemagne Capital
MBA from Georgetown University and BA from Dartmouth College. CFA charter holder
Chairman of Supervisory Board, main shareholder and the ultimate controlling party of JSB “Pivdennyi”
Chairman of Supervisory Board and the ultimate controlling party of A/S Regionala Investiciju Banka
Major owner in a number of holding’s companies
Source: Pivdennyi Bank 5 5

6. Group’s Geographic Presence
Regional Investment Bank
PIVDENNYI Bank
The strategy of preserving the market share, the activation of the transactional business, balanced and weighted growth of the loan portfolio.
Current Network:
110 outlets in 18 regions of Ukraine
277 ATMs
5 340 point-of-sale (‘‘POS’’) terminals
Source: Pivdennyi Bank

7. Structure of the Group's balance sheet on 01 Apr 2017, UAH billions
Assets
Bank
RIB
20.2
12.0
Loan portfolio
Bank
RIB
14.1
2.8
Legal entities accounts
Bank
RIB
7.6
9.3
Individuals accounts
Bank
RIB
7.0
1.2
Source: Pivdennyi Bank

8. PIVDENNYI Bank in Odessa
Odessa region is one of the most important regions in the country :
Odessa region is the largest in Ukraine (5.5% of the territory) – thousand km2
Odessa region contributes to 4.6% of the Ukrainian GDP and 5.6% of the total population (over 2.39 mln residents) and has the lowest level of unemployment in Ukraine
Odessa is one of the largest sea ports on the Black Sea and the largest in Ukraine
Services sector, mainly represented by SMEs, is the main factor of growth
Odessa
Loan Portfolio by Regions
On 01 Apr 2017
Odessa region is Bank’s “home market”
Bank’s market share in the region varies from 20% to 30% depending on products.
Bank has a very loyal customer base comprised mainly of SMEs and large corporates many of which have been with the Bank since its creation
Source: Pivdennyi Bank,
Ukrainian statistics committee

9. General strategy Assets, Loans & Equity Operating* & Net income
Bank is a classic universal commercial bank serving corporate (Large Corporates & SME) and retail customers. Bank will target those segments within at least next 3 years.
Bank is determined to focus on SME and corporate banking mainly through lending.
Bank will retain its strong market share in Southern Ukraine (20-30% depending on products).
Bank consistently implements the strategy of regional development, expanding the network of fully functional outlets.
Bank will continue its advancement to retail banking sector by attracting deposits and promoting transaction services.
Assets, Loans & Equity
Operating* & Net income
* Operating Profit before Admin & Other OE
Source: Pivdennyi Bank

10. Lending strategy on 01 Apr 2017
Loan book Structure
Bank will retain its strategy in lending policy by focusing on selected cash-rich industries
Bank plans to keep current structure of its loan portfolio
Prudent approach to retail lending
Diversification of industries exposure with further decrease in concentration is expected
Breakdown of the wholesale and retail trade
On 01 Apr 2017
Source: Pivdennyi Bank

11. Lending strategy on 01 Apr 2017
Loan Portfolio
SME Loan Portfolio (Industry Breakdown)
Regional Structure of SME Loans*
SME loan products
* corporate clients with sales of less than EUR 50m yearly and/or with not more than 250 employees
Source: Pivdennyi Bank

12. Funding strategy Funding Structure
Bank will retain balanced funding strategy by focusing on customer deposits in Ukrainian market
Bank plans to keep current structure of its funding
Restrained approach to DCM borrowings will be in maintained
Bank expects an increase in the level of deposits due to the implementation of new transactional products
Bank will continue its activity in syndicated loans market and bilateral cooperation with International Financial Organizations as well as its activity in trade finance and structured finance segments
On 01 Apr 2017
Breakdown of the customer accounts
On 01 Apr 2017
Source: Pivdennyi Bank 12 12

13. Capitalisation strategy
UAH MIO
2014
2015
2016
1Q2017
Total Risk Adjusted Assets,
Off-Balance Sheet Commitments and Market Risk
16 357,4
22 064,7
23 730,4
24 154,6
Share capital
956,9
Share premium
335,6
Retained earnings
244,8
42,3
147,9
173,5
Minority interest
293,3
781,4
886,6
943,2
Tier-1 capital
1 830,6
2 116,2
2 327,0
2 409,2
Tier-1 capital ratio
11,2%
9,6%
9,8%
10,0%
Revaluation reserve for fixed assets
238,8
321,8
292,6
291,1
Revaluation reserve for investment securities available for sale
0,0
3,6
1,8
2,7
Debt securities in issue
433,7
438,9
Subordinated debt
288,4
307,8
286,3
270,6
Currency translation reserve
304,8
447,5
463,7
460,3
Tier-2 capital
832,0
1 080,7
1 478,1
1 463,6
Tier-1 and Tier-2 capital
2 662,6
3 196,9
3 805,1
3 872,8
Capital adequacy ratio*
16,3%
14,5%
16,0%
Efficiency
Shareholders plan to retain current level of control over the bank.
Management intends to keep capital adequacy ratio above 15.0% in the future.
Shareholders are able to support the Bank by additional capital.
Share of non-performing loans (NPL) in the loan portfolio decreased during 2016 from 11% to 7%.
* In accordance with requirements of Basel Capital Accord
Source: Pivdennyi Bank 13 13