Investment Attractiveness Index with the support of the InMind research company EBA Investment Attractiveness Index (4th wave) Conducted by EBA with the support of the InMind research company

Investment Attractiveness Index with the support of the InMind research company Project summary The results of 4 th wave of investment climate in Ukraine tracking research. Methodology: The EBA Investment Attractiveness Index is assessed as the mean value based on the following five questions:  What do you think about the investment climate in Ukraine?  How would you estimate the investment climate for your company in Ukraine at the moment compared to the previous three months?  What are your expectations of the investment climate in Ukraine over the next three months?  In your opinion, would it be profitable for new entrants to invest in Ukraine over the next three months?  What are your expectations of the business environment of your primary industry over the next three months? Participants: 78 CEOs of EBA members companies Timing: April, 6 – May, 14, 2009 Survey Implementation: the Survey was conducted by EBA with the support of InMind research company

Investment Attractiveness Index with the support of the InMind research company Key findings

Investment Attractiveness Index with the support of the InMind research company Key findings Investment Climate in Ukraine Investment Climate Dynamics: last 3 months Investment Climate Dynamics Expectations: next 3 months Profitability for new entrants: next 3 months 2,3 2 nd wave 1,8 2,2 2,3 General EBA Index 2,2 Investment Climate of Primary Industry: next 3 months 2,5 3,1 1 st wave 2,8 3,1 3,4 3,3 General EBA Index 3,1 2,0 3 rd wave 2,1 2,2 2,4 General EBA Index 2,2 2,4 2,3 4 th wave 2,7 2,8 2,7 General EBA Index 2,6 2,7

Investment Attractiveness Index with the support of the InMind research company Key findings Five-grade scale is used to evaluate the investment climate, where 1 stands for the lowest evaluation and 5 stands for the highest evaluation. After the sharp decline in Sept-Oct’08 and the stabilization at the low level during the period of Oct’08 - Feb’09 the EBA Investment Attractiveness Index for the first time since its launch showed slight increase by all indicators and reached 2,6 on a 5 point scale. Though the current investment climate estimation reached only 2.3 and is the most pessimistic indicator, all other indicators increased stronger reaching Therefore investors demonstrated more optimistic estimation of the investment climate in the coming 3 months that is now getting closer to neutral evaluations. Besides higher evaluation of the previous period (2.7) compared to the lower evaluation of the current situation (2.3) indicates that the actual situation in Ukraine on experts’ opinion proved to be slightly better than expected.

Investment Attractiveness Index with the support of the InMind research company Key findings The slight increase of the EBA Investment Attractiveness Index and all its components compared to the previous 2 evaluation periods also proves that the insiders evaluation of the actual Investment Climate is more optimistic compared to international country ratings based on macroeconomic indicators where Ukraine has one of the lowest positions. There is also a significant shift in the actions taken by companies in the crisis context: companies demonstrate stronger focus on their products/services quality, development and promotion as well as on company effectiveness & business planning. While the share of those who have taken cost saving measures and staff/salaries reduction remained at the same level less companies were focusing on development plans suspension and investment reduction as well as restructurization that were more significant measures during the first stages of the crisis.

Investment Attractiveness Index with the support of the InMind research company Key findings (September, 3-7) (September, 8- 21) (September, 22-28) (September, 29 – October, 2) N=42N=26N=50 N=33 (October, 23-31) N=53 (January, 19 – February, 12) N=103 (April, 6 – May, 14) N=78

Investment Attractiveness Index with the support of the InMind research company EBA – Index: Components

Investment Attractiveness Index with the support of the InMind research company Investment Climate in Ukraine Mean = 2,3Mean = 3,1 The Investment Climate in Ukraine is… (5 point scale) Mean = 2,0 0 – + Mean = 2,3

Investment Attractiveness Index with the support of the InMind research company Investment Climate Dynamics: last 3 months Mean = 1,8 Mean = 2,8 Mean = 2,1 0 – + The Investment Climate in Ukraine… (5 point scale) Mean = 2,7

Investment Attractiveness Index with the support of the InMind research company Investment Climate dynamics expectations: next 3 months Mean = 2,2 Mean = 3,1 Mean = 2,2 0 – + The Investment Climate in Ukraine… (5 point scale) Mean = 2,8

Investment Attractiveness Index with the support of the InMind research company Profitability for New entrants: next 3 months Mean = 2,3 Mean = 3,4 Mean = 2,4 0 – + Profitability for New Entrants … (5 point scale) Mean = 2,7

Investment Attractiveness Index with the support of the InMind research company Investment Climate of primary industry: next 3 months Mean = 2,5 Mean = 3,3 Mean = 2,4 0 – + Investment climate of primary industry… (5 point scale) Mean = 2,7

Investment Attractiveness Index with the support of the InMind research company Investment Climate evaluation by Industry type

Investment Attractiveness Index with the support of the InMind research company Actions taken by companies in the context of crisis

Investment Attractiveness Index with the support of the InMind research company Thank you!