1. Think global, serve local October 1st, 2015Piotr Napolski Trade Finance with Ukraine from the perspective of a regional bank

2. We are the cooperative central institution to 187 local banks in Rhineland and Westphalia  Central institution to 187 local cooperative banks (Raiffeisenbank or Volksbank) with 2.217 branches in Germany’s Rhineland and Westphalia regions since 1884 Trade Finance presentation Snapshot on WGZ BANK  Long-standing partner for small and medium enterprises in the Rhineland and Westphalia regions (= our DNA)  Thanks to a sound, crisis-proven business model WGZ BANK is one of the few systemic banks in Germany that has never needed and received governmental support  Thanks to our corporate governance and strict compliance with laws and regulations WGZ BANK has never needed to pay any penalties to authorities  Conclusion: WGZ BANK/our cooperative banking group is with: Moody's Aa2 (positive outlook), Fitch and S&P: both AA- (outlook stable) the best rated commercial bank not only in Germany but also in the European Union (since 22nd of June 2015)

3. Our strategy in Trade Finance: Trade Finance presentation We will follow him, follow him wherever he may go. = We support exclusively our German clients with eligible Trade Finance products around the world. Quelle: http://www.yomdel.com/wp-content/uploads/2013/02/Customer-Service-Our-Priority.jpg

4. Geopolitical challenge: Russian/Ukrainian conflict and western sanctions Timeline: Key Events  March: „polite men“ took over the Crimea/annexation  July 17 th 2014: MH 17  Escalation in Donbass  September 5 th Minsk I  Further escalation in Donbass  February 12 th 2015 Minsk II  September 2015 US/EU-Sanctions – March 6 th 2014 (symbolic) – March 17 th (symbolic) – April 28 th (symbolic) – July 17/31 th (real economic sanctions) – September 12 th (tightening incl. misarrangement for subsidiaries) – December 4 th (correction of the misarrangement) – Februar 16 th 2015, tightening of EU sanctions – Light at the end of the tunnel? Trade Finance presentation

5. Impact on Russian/Ukrainian conflict for German Trade Trade Finance presentation  Enormous decrease of German exports to CIS countries  Unsecured Trade Finance with Russia still possible but we observe: – higher pricing – shorter tenors – concentration on customers' business only  Strong demand for ECA-covered transactions  Ukraine: tension and nervousness in the market arising from: – Ukrainian sovereign debt restructuring – Deepest banking crisis in its modern history  Only secured Trade Finance with Ukraine possible We are longing for peace, fraternity of people and new TF-deals !

6. Negative tendencies in foreign trade Trade Finance presentation 2012 – 2014 : German Exports to CIS countries (millions EUR)

7. Negative tendencies in foreign trade Trade Finance presentation 1 half of 2015 : German Exports (millions EUR)

8. Particular importance of EBRD TFP for a regional bank Trade Finance presentation  Specific challenges for a mid-sized provincial bank – analytical capacities are limited – risk appetite/clean limits not expandable  TFP enables us to serve our customers in more difficult countries  Using TFP means easing credit limits and country limits  TFP: connecting people (helps us to find new banking partners)  TFP: issuing banks audited by EBRD = easing our own compliance procedures  TFP: easy handling, fair pricing, fast responses We have so strong feelings towards EBRD TFP-Programme