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Moscow – City o f new investment and business opportunities 17.6.2013

Moscow – City o f new investment and business opportunities 17.6.2013. The Way in to New Markets. Key Partner of Czech Exporters and Their Customers Abroad. Czech Government´s Export Promotion Scheme. Czech Export Bank In A Nutshell.

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Moscow – City o f new investment and business opportunities 17.6.2013

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  1. Moscow – City of newinvestment and business opportunities 17.6.2013

  2. The Way into New Markets Key Partner of Czech Exporters and Their Customers Abroad

  3. Czech Government´s Export Promotion Scheme

  4. Czech Export Bank In A Nutshell CZECH EXPORT BANK plc (CEB) is a specialized banking institution, one of main vehicles in the Czech government‘s export promotion scheme 100% government-owned, a not-for-profit joint-stock company Operating in line with the rules of OECD Arrangement on Officially Supported Export Credits Utilizing standard insurance cover of EGAP, another Czech Export Credit Agency Integral part of the Czech Republic‘s banking system, fully subject to standard banking regulations Supplementing local commercial banks‘ services Rating mirrors that of the Czech Republic: Moody’s A1 S&P AA-

  5. CEB – Shareholders´ Structure Registered capital of CEB: CZK 4 billion (approx. EUR 160 mil.)

  6. CEB´s Results In 2012 54 business transactions completed; Volume of signed Loanagreements – CZK26 billion (EUR 1 billion), i.e. one of the best results in recent years; The largestLoanagreementsigned in 2012 – Ashinskiy metallurgical works in the Russian Federation with a total investment cost of about EUR 331 million; CZK 14,5 billion (EUR 580 million) of loans disbursed; Total assets of CZK 83,5 billion (EUR 3.3 billion) as of December 31, 2012; Outstanding results in the strategic segment of SMEs: total volume of CZK 3 billion (EUR 120 million)

  7. Officially Supported Export FinanceUnder the OECD Arrangement CEB provides official support for deals executed by Czech exporters or investors, but credit may be extended to the buyer or its bank. CEB operates in line with OECD regulations, especially the Arrangement on Officially Supported Export Credits, which stipulates i.a. following conditions for official support with a repayment term of 2 years or more: buyers must provide a down payment ≥ 15% of contract value; official support for local costs ≤ 30% of contract value; repayment term ≤ 2 -10 yearsor in exceptionalcases more than 10 years (for power station orsimilardeals); principal to be repaid in equal instalments, no less frequently than every 6 months; 1st instalment no later than 6 months after starting point of credit; fixed rate based on the relevant CIRRor SWAP ratecurveorfloatingratebased on EURIBOR as minimum interest ratecouldbeoffered.

  8. CEB´s Main Product Portfolio

  9. Russian Federation:Target Market of Czech Export Bank and its clients

  10. Russian Federation:Target Market of Czech Export Bank and its clients Russian Federation is among 11 countries identified as priority countries of the Czech government´s Export Strategy 2012 – 2020 Export to Russian Federation represented approx. 4% of the overall Czech Exports in 2012 Credit Exposure to Russia represented approx. 44% of the Total Credit Exposure of CEB

  11. Russian Federation:Target Market of CEB and its clients CEB is key partner to Czech exporters and their Russian partners in various segments of the Russian economy:

  12. Russian Federation:Examples of some CEB financings (million) Magnitogorsk Metallurgical Works 416 USD Uralvagonzavod Reconstruction 310 EUR TPP Kurgansk 222 EUR Wood Production Plant Kalevala 151 EUR GPP Sosnogorsk reconstruction 127 EUR Shopping Centre Ryazan 120 EUR TPP Krasavino 80 EUR Uralvagonzavod Reconstruction (II.) 102 EUR Glass Works Technology 123 EUR Hydrogen Plant 55 EUR Technology of Granules Production 108 EUR Cogeneration Unit 57 EUR TPP Salechard 339 EUR Ashinskiy Metallurgical Works 331 EUR

  13. Buyers Credit – key CEB instrument on the Russian Market

  14. Export contract Advance payment Proceeds from loan disbursement „OECD“ Loan Repayments Insurance cover Buyers Credit, i.e. cross-border loans to Russian importers is CEB´s dominant product Buyers´ Credit Scheme Czech Exporter • Provided by exporter´s bank to importer (or importer´s bank) • Exporter receives financing just after delivery of goods • The loan does not enter exporter´s balance sheet (no impact on leverage) • Exporter is not a party in lending relationship ČEB (bank) Russian importer EGAP (insurance cy)

  15. Buyers Credit brings benefits to both, Czech Exporters and Russian Investors Benefits to Czech Exporters: Combination of Advance Payment, Pre-export Finance and subsequent proceeds from the disbursement of the Buyers credit fast and reliable source of working capital necessary for production and delivery of goods and services under the Export Contract Benefits to Russian Investors Even ambitious projects can be materialized by employment of relatively low level of equity – 15% Advance payment or max 30% Equity for Project Finance Medium to Long Term repayment of the Loans Favorable pricing Protection of Russian Investor´s interests by Advance payment guarantees, Performance and Retention bonds Selected key benefits

  16. Czech Export Bank - Representative Office in Russian Federation 7, Masha Poryvaeva Street 107078 Moscow Russian Federation Thank you for your kind attention Czech Export Bank plc Prague 1, Vodickova 34 Czech Republic www.ceb.cz

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