Insolvency - an opportunity for the innovative entrepreneur

1. 5th of March, 2013 Insolvency - an opportunity for the innovative entrepreneur Ioana Necula General Director

2. Key Issues • Who we are? • Short history of International Leasing • International Leasing within sector trends • Why International Leasing? • Business model • Current status and actions • What we have learned • Business Plan & Model • Leasing Activity • Distressed assets activity

3. WHO WE are?

4. Short History Of International Leasing • Set-up in 1995 as the first independent leasing company • Recognized by its competitors as a major trend setter • Co-founder of the National Union of Romanian Leasing (UNSLR) now divided into ALB and ASRL • First private company to issue public bonds (2000, 2002 and 2005 – successfully repaid) • First private leasing company listed on the capital market (RASDAQ) • 8.000 leasing contracts with over EUR 150 Mio • Very good reputation in the market • Specialized automotive and equipment financial leasing ticket size around EUR 30k • 2011 developed a dedicated platform for distressed assets management • 2011 - 2013 made several successful acquisitions of toxic portfolios.

5. Team structure • A team with over 15 years of leasing experience • An enthusiasticand energeticteam, ambitious to ensure the success of all complex projects • We developed a strong working experience on leasing due diligence projects • All our senior team have an in-depth leasing knowledge and support the management in successfully taking over leasing portfolios • We understand the particular risks of leasing transactions and how to shape our diligence approach to protect the Beneficiary’s interest • We have compelling and relevant sector expertise, being one of the first leasing companies set up in Romania • Building sound partnerships based on professionalism, accountability and integrity

6. Leasing Sector Synopsis - Trends Evolution Economic downturn and fraud* Source: ALB Evolution of non performing leasing from total granted credit * Criminal groups frauded the leasing sector; Financial market exposed to fraud lacking real forensic specialists at the time.

7. International Leasing Within Sector Trends International Leasing’s portfolio followed the trend of the overall market ITL freezing period * ITL financed only Q1 – Q3 (Q4 2010 – Q3 2011 = freezing period; reorganization procedure) ** ITL restarted financing in Q4 *** estimated figures Source: ALB

8. Why international leasing?

9. Restructuring the Business • Good bank / bad bank modelwas proposed by ITL (first time in Jan 2009!) • Decision to declare insolvency took almost 18 months • Creditors / banks’ consensus difficult to obtain • Insolvency - the only viable solution • Insolvency protected both the company and secured the creditors assets • BCR as main creditor – critical role in restructuring International Leasing • The insolvency procedure started in Oct 2010 !

10. Restructuring the Business

11. Restructuring the Business NewCo– Good Bank (ILI) OldCo– Bad Bank (ILB) Valuation and acquisition of distress portfolios Business origination • Common management platform: • Top & middle management • Support functions (HR, IT, • finance & accounting, logistics) Assets realization Underwriting Toxic receivables recovery Monitoring and portfolio administration Integrated common support platform for two complementary businesses create the synergies for cost segregation and effectiveness.

12. Current status and ACTIONS

13. What we have learned • In difficult times for success to be achieved it is essential and critical to convince and to ensure the support of the creditor through strong entrepreneurial involvement and commitment • Good business has to take advantage of the accumulated experience and continue on improved basis. Therefore the leasing activity remains the core business while capitalizing more on its potential. • All experience and threats have a strong educative role and therefore new capabilities have been identified to suit the new trends. Developing the distressed assets managing platform is one of the positive results of our struggling experience along with improving the management skills. • Actively adapting to the new economical reality and conditions is a must for the survival and a way to profitable opportunities.

14. Business model designed to meet current market evolution • Existence of a Healthy Leasing Companyfunctioning on an improved basis • Functioning Distress Assets Platformto take advantage of the growing market opportunity for distress assets acquisition or management,which will alsohandle the default risk from leasing activity. • International Leasing demonstrated a series of qualities that qualifies it for sustained growth: • Significant mind share • Young experienced and dynamic management team • Proven dependable and flexible ERP system • Constant string of innovative and profitable products • Audited by a Big6 company • Captive dealership network Trendo Automobile – Peugeot & Kia • Recognized web domain www.leasing.ro • Appropriate size to build on – not too small to be difficult and time-consuming to further develop; not too large to be prohibitive to buy in • One of the last independent Romanian leasing companies with sound reputation

15. Leasing Strategy and comparative advantages Leasing strategy • Customer for life’ policy - steady and loyal client base • Financing the client not the asset – adequate response to the client’s investment needs • Rigorous selection of new clients based on improved risk and information analysis • Complete services adapted to client need (using the ILB platform for non-financial services) Ouradvantages Ethical behavior Viewed as a “partner” by customer Organization’s sales force Integrated technology platform Competition is driving commodization - Product innovation Product and service differentiation

16. Portfolio Acquisition • Volume of portfolio acquisition to date: * Started late in 2011 (August). ** Transactions currently ongoing.

17. Distressed assets - opportunities • Need for the banks to clean their portfolios – approx. 3 billion EUR nonperforming loans as per NBR statistics • More owners and banks consider the alternative to sell toxic portfolios or externalize the administration of such portfolios • To buy independent assets in distress and restructure credits for the Banks • Lack of distress assets management capabilities and offers on the market (for leasing and legal entities segment)

18. Distressed assets strategy and comparative advantages Distressed asset management strategy • Building sound partnerships with banks and leasing companies to ensure constant distressed assets acquisitions (distressed receivables and goods) • Also looking on free market acquisitions from either individuals, auctions, liquidators, bailiffsor other leasing companies (distressed goods) • Developing a sound and tested network relationships with trustable and efficient bailiffs • Developing non judiciary procedures in order to gain information and to seize an amiable profitable solution • Increasing business volumes to maximize profits Our advantages Profitable proven experience Dedicated team with adapted skills and mind set Ability to find solution and to set partnerships Good reputation and trustable team

19. Our Offer In regards of the experience and the expertize, International Leasing has the capability to offer today the following services: • Due diligence over existing portfolios • Recovery of receivables and assets • Liquidation of repossessed assets • Management of repossessed goods in specialized parks (auto and equipment) • Portfolio and/or repossessed stock acquisition

20. Contact Thank you for your attention! Ioana NECULA Director General Tel./Fax: +40 21 305 5150 Mobile: +40 722 556 565 E-mail: ioana.necula@leasing.ro http://www.leasing.ro/