Handlowy-Heller SA Ryszard Lubliński Member of the Management Board Commercial Director Warsaw, October 23–24, 2003

Poland success story Agenda What influenced development of factoring Development of SME in Poland Factoring market in Poland – current situation Trends and scenarios for future- how factoring will develop

Creation of market economy What happened in Poland since 1990

Source: PARP No. of active businesses in Poland

GDP growth rate 4,5% over last 10 years What happened in Poland since 1990

Gross Domestic Product Source: CSO

Inflation rate – down from 60% to 2% in last 11 years What happened in Poland since 1990

Inflation in Poland Source: CSO

Creation of the financial system Stock Exchange Internal and external convertibility of the currency financial market banking system What happened in Poland since 1990

Source:The Banking industry in the emerging market economies, BIS 2001 The size of the foreign investments in the banking sector (%) 2001

Source:CETO Financial Market in Poland Consumer savings in the banking 44 billion EURO Commercial deposits in the banking 16,5 billion EURO Insurance 8 billion EURO Investment billion EURO Pension funds: 6,5 billion EURO Banks investments in securities: 23,5 billion EURO billion EURO

Source: PKPE Structure of businesses in Poland (in terms of # of businesses)

Source: PKPE SME liquidity problems (2001)

Source: PKPE Sources of financing the growth for SME

Source: H-H Factoring in Poland – % of GDP Country Volume% GDP Italy125 bln EUR10,27% UK140 bln EUR 9,98% France 68 bln EUR 4,46% Spain 24 bln EUR 3,62% Poland 3,3 bln EUR 1,8%

Source: KIF The size of the factoring market in Poland

Factoring in Poland- things to do 1.Bad debt write offs 2.VAT regulations 3.Factoring concept awareness

Factoring in Poland-what next ? 1.Newcomers – growing competition 2.Rapid development of faktoring without recource 3.Cross-selling strategies 4.Internet based products

Ryszard Lubliński Member of the Management Board Commercial Director tel