Estonian factoring success Sven Randoja 24. October 2003 Warsaw

Estonia ESTONIA Capital - Tallinn Population - 1.4 million Currency - Estonian Kroon (EEK) Exchange Rate- EUR 1= 15,646 EEK GDP 6,9 bn EUR

Estonian economy Macroeconomic highlights hfjshfjsh 1994 1999 2000 2001 2002 2003E GDP -2.0% -0.6% 7.3% 6.5% 6.0% 4.7% GDP/capita (EUR) 1290 3536 4059 4568 5060 5432 Exports ( € m, %) 1,000 2,238 3,443 (+54%) 3,695 (+7%) 3,633 (-2%) 4,000 (+10%) Imports ( € m, %) 1,284 3,222 4,614 (+43%) 4,796 (+4%) 5,077 (+6%) 5,635 (+11%) Trade deficit ( € m, %) -284 -984 -1,171 (+19%) -1,101 (-6%) -1,444 (+30%) -1,635 (+14%) CAD / GDP, % hfjshfjsh -7,2% -4.7% -6.1% -6.2% -12.5% -14.5% CPI 47.7% 3.3% 4.0% 5.7% 3.6% 1.4% Unemployment 7,3% 12.3% 13.7% 12.6% 10.3% 9.9% FX rate EEK/EUR - 15.65 15.65 15.65 15.65 15.65

Estonian economy Concentration Foreign capital inflow Financial sector Concentration 50 banks in 1992 7 banks in 2003 Foreign capital inflow 86 % foreign investment SEB Swedbank Nordea Total corporate loans: 270 mio EUR in 1994 2,68 bln EUR in 2003 Intrest rate (short term average) 24,3% in 1994 3,5% in 2003 Stock exchange formed in 1996

Development of factoring market History of factoring market Started in 1994 3 players in the market Hansa Leasing Ühisliising Bank of Tallinn Constant growth In 1998 Hansa Leasing joined FCI In 2002 Ühisliising started cooperation with Gerling NCM

Development of factoring market Portfolio Turnover € m € m Source: Ühisliising

Development of factoring market Market penetration Factoring in Estonia - % of GDP % of GDP compare to other countries

Development of factoring market Drivers of success Easy alternative financing instrument Promotion, good image Risk assessing easier Public sector projects Electronic data exchange No alternative for credit insurance

Factoring today Concentration Steady growth More sophisticated 5 players in the the market 2 players owns 90% of the market Hansa Leasing owns 60% of the market and Ühisliising 30% Steady growth More sophisticated Electronic data exchange „Traditional factoring“ no more „investment projects“ Share of total volume Export 20% Domestic 77%, Tax and import 3%

Factoring today Factoring by sector Wholesale and retail sale have been one of most rapidly grown business sectors in Estonia. Source: Ühisliising 2003

Factoring today Factoring clients Factoring clients structure Factoring turnover by client group Source: Ühisliising 2003

Factoring market outlook Steady growth in pace of economy growth More advanced technology E-business Market stays concentrated Market enters credit insurance company

Contact Ühisliisingu AS Tornimäe 2 10145 Tallinn Estonia Tel: +372 66 57 910 Faks: +372 66 57 987 e-post: sven.randoja@yl.ee