ALEKSANDR SERGEYEVICH ZUBANEV CJSC “Leasing Company “Ukrincomlease” PRESENTATION “Practical Aspects of Cooperation between Ukrainian Banks and Leasing Companies: Lessor’s Perspective” TOPIC OF THE PRESENTATION – key steps of cooperation between leasing company and bank.

1. Starting Points  In Ukraine, leasing companies are predominantly funded by local banks.  Success of leasing companies’ operations to a large extent depends on how well they get along with banks.

2. Leasing Companies interest  to obtain large-scale credit lines in foreign currency at attractive interest rates  To as much as possible speed up obtaining of each loan within the credit line  To be able to quickly increase volume and terms of lending

 To minimize credit risks of loans to leasing companies  To receive sufficient colateral for loans it provides  Issue loans on the best possible conditions  To cut its administration costs for issue and monitoring of loans  Receive additional benefits from cooperation with leasing company 3. Bank’s Interests

4. Alignment of Interests  Optimum alignment of bank’s and lessor’s interests takes place in the process of their practical cooperation. It may take time.  Our practice of work with banks allowed to come up with a cooperation pattern which takes into consideration interests of both parties.

5. Bank’s and Leasing Company’s Cooperation Pattern 1. A credit line is opened for a specific leasing program. 2. A detailed feasibility study must be developed for each leasing program. 3. Bank receives a number of additional benefits from cooperation with us. 4. Bank receives our analytical reports on the client and his/her project. 5. We undertake a number of steps to reduce credit risks. 6. Leasing company closely cooperates with bank in reviewing proposed projects.

6. Credit Line  Each tranche credit line is typically opened for a specific leasing program, which includes a group of similar leasing projects (for example, projects aimed at leasing of cars).  This enables to considerably reduce costs and time required for review of each project within the credit line.

7. Main Points of Feasibility Study  Analysis of the respective market situation  Main partners which will be engaged into the leasing projects  Detailed financial projections on the program  Benefits of bank and leasing company as a result of leasing program

8. Additional Benefits for Bank  Leasing company helps its clients to establish direct cooperation with bank  Through partnership with leasing company, insurance companies and leased assets suppliers are encouraged to directly interact with the bank.

9. Main Areas of Cooperation with Bank  Leasing company provides the bank with analytical reports and other material it has prepared during review of clients’ project proposals  Leasing company quickly prepares additional documents, required by the bank to review the proposed project  Leasing company takes active part in preparation of documents on loan

10. Ways to Reduce Risks Inherent in Leasing Projects  Elimination  Mitigation  Hedging  A joint action plan between leasing company, insurance company and equipment supplier

11. Additional Sources of Funding for Leasing Projects  Commercial loans  Pledge of titles  Bonds  Stock  Securitization of leased assets