HOUSE_OVERSIGHT_026134.jpg

Kiev, 12 June 2017 Dear George, Re: Ukrainian Banking Opportunity Further to our discussion, I am sending a brief presentation on the prospect of establishing a banking footprint in Ukraine through the acquisition of a bank. Currently the central bank in Ukraine, the National Bank of Ukraine (NBU) is not keen to issue new banking licenses but urge prospective investors to acquire an existing license. The main drivers for my positive stance on investing in the banking sector in Ukraine are: = the improving economy following the IMF program with demanding but required structural reforms, with real GDP growth expected to reach 4% in 2020; = the improving political conditions in terms of the conflict with Russia with the support of NATO; = the recent developments in the EU-Ukraine relationship with the abolition of visa and the prospect of concluding the Association Agreement in July; = the investment and commitments from supranational institutions so far (EBRD: c. US$6 billion being the third largest exposure of the bank after Turkey and Russia, World Bank: c. US$5 billion); « the significant restructuring efforts in ensuring a healthier banking sector following AQR that resulted to the nationalization of the biggest bank Privatbank and the closing of half of the banks (over 90 banks), and the preparation of the state sector banks (52% share of assets) for privatization in the next 2 to 3 years; and « the current landscape of the banking sector that allows organic expansion because of very few notable foreign banks that have the ability to develop business or, even more, to exploit the potential for consolidating the banking sector where government owns 52% in a market with increasing trend in loans and deposits and high commission income. HOUSE_OVERSIGHT_026134