Financing Czech projects in South Korea Czech Export Bank Key Partner of Czech Exporters and Their Customers Abroad

Czech government´s export promotion scheme Czech Export Bank State-owned bank financing officially supported export credits EGAP State-owned insurance company covering export credits risks, political and commercial risks uninsurable by a commercial insurance Czech Trade Provides export assistance and consulting, individual counseling, export education Ministry of Industry and Trade Defends trade interests of the Czech Republic within the EU, WTO, OECD Ministry of Foreign Affairs of the Czech Republic Frames and coordinate the foreign policy of the Czech Republic in the area of external economic relations including development cooperation and humanitarian aid

Czech Export Bank as a specialized banking institution Since 1995 one of the pillars of national export policy 100% government-owned Integral part of the Czech Republic‘s banking system, fully subject to standard banking regulations Supplementing local commercial banks‘ services in deals with higher risk, longer tenors and larger volumes of financing Operating in line with the rules of the WTO, OECD and EU Rating mirrors of the Czech Republic: Moody’s A1 S&P AA-

CEB in 2014 Bank's total assets at the end of 2014 amounted up to USD 4.08 billion (CZK 98.02 billion ), year-to-year increase by about 3% CEB signed 29 new contracts in the amount of USD 247 million (CZK 5.93  billion) and 26 amendments and waivers to previously signed contracts in the amount of USD 172 million (CZK 4.12 billion); total amount thus reached USD 419 million (CZK 10.05 billion ) Loans were disbursed in the amount of USD 630 million (CZK 15.1 billion) The largest contract signed in 2014 was the construction of Units 3 and 4 of Mochovce nuclear power plant

CEB´s results 1996-2014 Total volume of supported export USD 15.75 billion (CZK 378 billion) Total number of concluded deals 1 287

CEB in the world

CEB´s main product portfolio Borrower Product CZECH EXPORTER Financing of production for export Financing of market research Supplier's credit Guarantees Purchase of export receivables CZECH INVESTOR Financing of investments abroad FOREIGN IMPORTER Buyer's credit EXPORTER´S BANK Refinancing of supplier's or buyer's credit IMPORTER´S BANK Refinancing of buyer's credit

CEB’s product portfolio by types of product As of 31 Dec 2014 (Total value CZK 86.1 billion)

CEB’s product portfolio by countries As of 31 Dec 2014 (Total value CZK 86.1 billion)

CEB’s product portfolio by sectors As of 31 Dec 2014 (Total value CZK 86.1 billion)

CEB´s financing solutions for Czech projects in South Korea CEB is ready to provide assistance to Czech exporters and Korean partners finding the most suitable financing solutions for their projects involving Czech technologies. Credits can be granted in a convertible currency EUR or USD. Examples of recommended financing structures provided by CEB: Indirect buyer´s credit through a leading public or private Korean bank Direct buyer´s credit secured by a guarantee issued by a respectable guarantor, e.g. a governmental agency, a leading bank, etc. Financing investments abroad Forfaiting under deferred payment of L/Cs Turn-key project financing Bank guarantees covering Czech exporters´ obligations

Financing conditions highlights (buyer‘s credit) Financial terms and conditions in compliance with the OECD Consensus (exceptions possible – e.g. delivery of defense military goods) At least 50% of the deliveries exported pursuant to the export contract must be of Czech origin Credit amount up to 85% of the contract value Financing of local costs up to 30% of the export contract value* Advance payment min. 15% of the contract value Credit insurance of EGAP *The total amount to be paid by or on behalf of the buyer for goods and/or services exported excluding local costs.

Cooperation with Korean banks Examples of some outstanding Korean banks: Woori Bank, Seoul KB Kookmin Bank, Seoul Korea Development Bank, Seoul Industrial Bank of Korea, Seoul Export-Import Bank of Korea, Seoul However, CEB is ready to consider co-operation with any other bank, depending on the outcome of CEB´s internal risk assessment, and on potential collateralisation.

Key features of CEB´s strategy Supporting Czech exporters in the role of final suppliers Increasing the number of supported exporters Promoting Czech investment activities abroad Territorial diversification Minimizing the „burden“ on the state budget New tools of export financing and flexibility Ensuring financial stability of the bank and minimizing risks Expanding the investor base

Thank you for your kind attention Export Finance Corporate & SME Igor Ovcacik Managing Director Export Finance Corporate & SME Czech Export Bank 111 21 Prague 1, Vodickova 34 Czech Republic www.ceb.cz E-mail: ceb@ceb.cz