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

2. Poland success story Agenda What influenced development of factoring 1990-2002 Development of SME in Poland Factoring market in Poland – current situation Trends and scenarios for future- how factoring will develop

3. Creation of market economy What happened in Poland since 1990

4. Source: PARP No. of active businesses in Poland 1990-2002

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

6. Gross Domestic Product Source: CSO

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

8. Inflation in Poland 1991-2002 Source: CSO

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

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

11. Source:CETO Financial Market in Poland -2002 Consumer savings in the banking system: @ 44 billion EURO Commercial deposits in the banking system: @ 16,5 billion EURO Insurance companies: @ 8 billion EURO Investment funds: @3,5 billion EURO Pension funds: 6,5 billion EURO Banks investments in securities: 23,5 billion EURO TOTAL: @101 billion EURO

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

13. Source: PKPE SME liquidity problems (2001)

14. Source: PKPE Sources of financing the growth for SME

15. 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%

16. Source: KIF The size of the factoring market in Poland

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

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

19. Ryszard Lubliński Member of the Management Board Commercial Director www.heller.pl tel. + 22 581 04 00