Česká spořitelna

General Presentation of ČS Financial Group

Česká spořitelna's Development

History

Current Market Position

History of Česká spořitelna

After February 1948 small savings banks were nationalized

In 1967 one State Savings Bank was created and in 1969 it was split into Czech State Savings Bank and Slovak State Savings Bank as a result of Czechoslovak Federation Law

1948 - 1990

Spořitelna česká was established

12th February 1825

Česká spořitelnabecame a joint stock company

30th December 1991

Erste Bank paid first half or EUR 531 m price and became 52% shareholder of ČS

3rd August 2000

Ambitious 18 month transformation programme was completed

December 2001

Erste Bank through its major shareholder announced its intention to buy out minority shares of Česká spořitelna

Erste became 98% owner of Česká spořitelna in the course of time

March 2002

3

Česká spořitelna offers a complete range of

financial products and related services to

Private individuals

Small and medium

sized businesses

Municipalities

Large corporates

Česká spořitelna Today

Market leader in many business activities:

Consumer lending

Payment cards

business

ATM network

Volume of provided

mortgage loans

Managing customer

funds

Today Česká spořitelna is client oriented, modern

and competitive bank of European quality

The largest bank in the Czech Republic

as measured by number of clients

4

ČS Strategic Goals

Česká spořitelna tends to become a bank which

helps its clients to improve their financial health

by providing financial and nonfinancial services

(e.g. utilities), and therefore fulfil its long-term goal

of bringing prosperity to its clients

The bank focuses on key segments in retail,

corporate and public segment and through these

segments wants to help local regions and

communities become more prosperous. Target

region is central and eastern Europe

accompanied by inspiration from Europe

and global competition

In order to achieve these goals,

Česká spořitelna intensively

pursues:

Client’s need fulfilment

Customer Obsession

Financial guidance

Availability

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Three Faces of ČS Retail Division

Pro všechny;

For whom

What

Values

Family financial

advisory with focus

on simplicity

Friendliness

Easiness

Trust

30,000+ CZK net

monthly income

or wealth of

0.5+ mil. CZK

Convenient financial

solutions for financially

capable clients

Professionalism

Accountability

Partnership

70,000+ CZK net

monthly income

or wealth of 4+ mil.

Exclusive services

for clients who want

to increase the value

of their property

Uniqueness

Exclusivity

Prestige

Small businesses and

entrepreneurs with a

turnover to 60 mil.

Financial services

using deep

knowledge of the

client´s business

Intelligibility

Consultant´s report

Proactivity

For everyone

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PropositionMy Healthy Finances Premium banking

(Erste Premier a EPB)

Retail proposition for

MSE

Česká spořitelna at Glance

10,135 employees 4.7 m clients

510 branches 1,698 ATMs & POS

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ČS ratings (as of 10 May 2018)

Consolidated IFRS

(in CZK m)

1-3 17 2017 1-3 18Y/Y

Change

Balance Sheet

Total assets 1,310,841 1,329,223 1,303,274 -0.6%

Customer loans 590,288 638,694 668,953 13.3%

Customer deposits 826,175 883,237 909,409 10.1%

Profit & Loss Statement

Operating result 4,718 18,987 4,836 2.5%

Net profit 3,528 14,610 4,070 15.4%

Financial Ratios

Return on Equity - ROE 11.5% 12.1% 13.3%

Net Interest Margin 2.7% 2.6% 2.3%

Cost/Income Ratio 49.4% 49.0% 48.9%

EGB AG98.97%

Municipalities0.59%

Other0.44%

Shareholder structure

as of 31 March 2018

Fitch A- F1 stable

Moody's A2 Prime -1 positive

Standard & Poor's A A-1 positive

Rating agency Long-term Short-term Outlook

Česká spořitelna Financial Group

ČS subsidiaries offer customers wide range of

supplementary financial products in area of:

Building savings and building loans

Leasing

Pension supplementary insurance

Factoring

Net profit of selected subsidiaries

Selected subsidiaries included

in consolidation

100 %100 %

100 %100 % 100 %

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* Only the result of Pension Society of ČS is captured, funds not included

IFRS, CZK m 1-3 17 1-3 18 % Change

Stavební spořitelna ČS 175 182 4.0%

sAutoleasing 28 26 -7.1%

Erste leasing 17 16 -5.9%

ČS Penzijní společnost* 65 49 -24.6%

Factoring ČS 16 17 6.3% Leasing ServicesFactoring and

Forfaiting ServicesPension Company

Building Society

Leasing Services

ČS Market Shares

Market leadership maintained (March 2018)

Market leadership in:

Number of customers (4.7 m)

Total mortgages (market share of 27%)

Consumer loans incl. credit cards (market share of 28%)

Total loans (market share of 21%)

Total deposits (market share of 21%)

25% in retail deposits, 13% in corporate deposits

Mutual funds with market share of 26%

No. 2 positions in:

Private mortgages (market share 25%)

Total assets (market share of 19%)

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19%19% 19% 20%

19%

23% 23% 23% 23% 23%

20% 20% 20% 21% 21%

Mar 17 Jun 17 Sep 17 Dec 17 Mar 18

Total assets Retail loans Corporate loans

25% 25% 25% 25% 25%

12% 12%13% 12% 13%

Mar 17 Jun 17 Sep 17 Dec 17 Mar 18

Retail deposits Corporate deposits

ČS Digital

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BUSINESS 24 Mobile bankMakes the management of company finances easy even during traveling

Friends 24New way of making small payments without knowing the account number

Investment centreEasy way to monitor stock-exchange, market analyses, exchange rates and commodity prices

Česká spořitelna is a traditional bank

with almost 200 years of history.

At the same time it is modern

institution, which introduces unique

digital and mobile products and

services on the banking market.

Here are some of them:

My statusApplication for clients who do not need to make payments, but want to continually monitor their finances

GeorgeAllows clients to transfer money, make QR code payments, manage payment cards wherever they are, full-text search or upload receipt.Soon ready for NFC payments and integration of My Healthy Finances service. Will replace SERVIS 24 Mobile bank

Actual Awards from Prestigious Institution

Česká spořitelna won the third place in the main category of research Nejlepší banka 2017 by the newspaper

Hospodářské noviny. ČS‘s product “Půjčka bez papírů” (Paperless loan) was ranked as the second best

in the Banking Innovator category

The Erste Private Banking service was rated the best private banking in the Czech Republic by the prestigious

World Finance magazine. In addition, Private Banking of the Erste Group was awarded as the best in the CEE

region by The Banker magazine

Product “Půjčka bez papírů” (Paperless loan) received the first place in Cena pokroku, awarded by the financial

portal Chytrý Honza

TV spot of Česká spořitelna “Professor Vojta’s Story" won a bronze medal at one of the most prestigious

international creativity festivals, Clio Awards, in the royal film’s category, where it proved its quality among several

thousand works

Česká spořitelna succeeded in the Zlatá koruna competition. ČS received the first place in the Mortgage category,

also, for the third time in a row, in the Corporate Social Responsibility category. Stavební spořitelna ČS won gold

and bronze medals for its products, Penzijní společnost ČS won bronze medal as well

In July 2017, Česká spořitelna again received the prestigious Euromoney Awards for Excellence as the Best Bank

in the Czech Republic. The prize is awarded each year by the Euromoney, international magazine specializing in

banking and capital markets

In March 2017, Česká spořitelna won the title as the Best Bank of the Year 2017 given by Global Finance

Magazine. The magazine’s editorial staff decided on the prize after consultations with financial experts and analysts

across the continents

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Erste Group

Introduction to Erste Group

1997 2000 2001 2003 2004 2005 2006 2007 2008

New holding structure improving

Group governance

Austria’s first savings bank: Founded in 1819

Erste Group went public in 1997 with a strategy to expand its retail business model into CEE

Acquisition of more than 10 banks between 1997 and 2008

Erste core activities – besides the traditional strength in serving private individuals and SMEs – include advisory services and support for corporate clients (incl. access to international capital markets)

Erste Group’s customer base grew from 600,000 in 1997 to 16.5 m in March 2018Sale in 2012

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Erste Group – Leading retail bank in the eastern part of the EU

Leading retail and corporate bank

in 7 geographically connected countries

Favourable mix of mature & emerging

markets with low penetration rates

Potential for cross selling and

organic growth in CEE Clients: 0.9m

Retail loans: 12.0%

Retail dep.: 9.0%

Branches: 115

Clients: 3.4m

Retail loans: 16.2%

Retail dep.: 15.8%

Branches: 508

Clients: 4.7m

Retail loans: 23.2%

Retail dep.: 25.4%

Branches: 510

Czech Republic

Clients: 2.2m

Retail loans: 27.3%

Retail dep.: 27.8%

Branches: 270

Slovakia

Clients: 1.2m

Retail loans: 13.6%*

Retail dep.: 13.8%*

Branches: 153

Clients: 3.7m

Retail loans: 20.2%*

Retail dep.: 19.5%*

Branches: 905

Austria

Clients: 0.4m

Retail loans: 5.6%

Retail dep.: 3.8%

Branches: 85

Absolut data reported as of March 31st 2018; AT and HR market shares for March 31st 2018 not available yet

* Data as of December 31st 2017

Direct presence

Indirect presence

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Croatia Serbia

Hungary

Romania

Strategy

Focus on local currency

mortgage and consumer loans

funded by local

deposits

FX loans only in EUR for

clients with EUR income

(or equivalent) and where

funded by local FX deposits

(HR & RS)

Savings products, asset

management and pension

products

Expansion of digital banking

offering

Retail banking

Large, local corporate and

SME banking

Advisory services, with

focus on providing access

to capital markets and

corporate finance

Real estate business that

goes beyond financing

Corporate Banking

Focus on customer business,

incl. customer-based trading

activities

In addition to core markets,

presences in Poland,

Germany and London with

institutional client focus and

selected product mix

Building debt and equity

capital markets in CEE

Capital markets

Financing sovereigns and

municipalities with focus on

infrastructure development in

core markets

Any sovereign holdings are

only held for market-making,

liquidity or balance sheet

management reasons

Public sector

Focus on banks that operate

in the core markets

Any bank exposure is only

held for liquidity or balance

sheet management reasons

or to support client business

Interbank business

Eastern part of Europe Focus on CEE, limited exposure to other Europe

Real customer needs are the reason for our business

Strategic Objectives

15

Erste Group Highlights

45,048 employees

16.5 m clients

2,546 branches

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EB ratings (as of 10 May 2018)

Consolidated IFRS

(in EUR m)Q1 2017 2017 Q1 2018

Y/Y

Change

Balance Sheet

Total assets 222,798 220,659 230,018 3.2%

Customer loans 132,992 139,532 142,100 6.8%

Customer deposits 144,707 150,970 155,306 7.3%

Profit & Loss Statement

Net profit 262 1,316 333 26.8%

Financial Ratios (quarterly)

Return on Equity - ROE 8.7% 10.1% 10.4%

Net Interest Margin 2.3% 2.4% 2.3%

Cost/Income Ratio 63.0% 66.1% 64.5%

Fitch A- F1 stable

Moody's A2 Prime-1 positive

Standard & Poor's A A-1 positive

Long-term Short-termRating agency Outlook

By regionBy investor

Shareholders structure Erste Group bank

Total number of shares: 429,800,000

1 Economic interest Erste Foundation2 Economic interest Savings Banks3 Other parties to the shareholder agreement of Erste Foundation, Savings banks and CaixaBank

* Unidentified institutional and retail investors

** Including Market Makers, Prime Brokerage, Proprietary Trading, Collateral and Stock Lending positions which are visible through custodian banklists

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Austria

27.5%

North America

16.3%

UK & Ireland

15.0%

Continental

Europe

25.7%

Rest of world

3.0%

Identified Trading **

3.2% Unidentified *

9.3%

Erste Foundation 1

11.2% Savings Banks 2

5.5%

Other Syndicated 3

3.1%

Caixa

9.9%

Employees

0.7%Retail

5.0%Institutional

47.2%

BlackRock Inc

4.9%

Identified Trading **

3.2%

Unidentified *

9.3%

ČS Group Product Offerings

Retail Customers

Corporate Customers

Financial Market Products

EU Programmes of ČS

My Healthy Finances

My Healthy Finances principles:

Helping clients better manage their

family budget

We are looking for savings in regular

monthly expenses, and advise how to

use them

We teach clients to use self-service

machines (simple operations can do

clients on their own; time spent with the

advisor = real advisory service)

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George

Banking of the future that will make clients‘ life easier

• Online advisor 24/7

George helps with money management and answers every question at any time

• George in mobile

George pays, changes the limit and blocks the card no matter where client currently is

• Smart search

Client enters the word or number related to the payment and George will find it within

a second

• Automated payment sorting

George carefully sorts out the client‘s expenditures, thus client exactly knows, how

much and for what he pays

• Higher security level and more comfortable login

Client sets his own login and adjusts the layout according to his ideas. He can log in

quickly and easily and confirm the payments with the application George Key

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Product Offering for Retail Customers

Accounts & Cards

My Healthy Finances with Personal Account (incl.

products for pupils, students and absolvents)

Entrepreneur current accounts

Service 24 (mobile & internet banking), application My

Balance, Melinda etc.

Debit and Credit cards

Lending products

Consumer loans (incl. loans consolidation)

Money on click – revolving loan

Operating, investment, mortgage, revolving, non-

purpose loans for MSE

Mortgages (incl. American mortgages)

Building Society Loans

Lombard loans

Overdrafts

Savings and Investment Products

ČS Saving account with envelopes for separate goals

Mutual funds

Building savings

Retirement benefit schemes

Life/non-life insurance

21

Product Offering for Corporate Customers

Payment Services

Current accounts and business debit and credit cards

Business 24 Internet banking, Business 24 Mobile bank,

MultiCash

e-Invoicing (@FAKTURA 24, e-Faktura)

Cross-Border Services

Card acquiring

Hedging

FX risks, Commodities & Interest rate risks hedging

Lending Products

Working capital & investment financing

Real estate & project financing

Syndicated, club & acquisition finance

Debt capital markets

Trade & Export Finance

Documentary business & bank guarantees

Export finance

Issuers Services

Custody services, depositary, cash payouts, squeeze-

outs

Advisory services

Financial & strategic advisory

Debt & Rating advisory

M&A advisory

Grant advisory

Companies valuation

Equity capital markets

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Financial Market Products

Treasury

Investment products

Products for foreign currency risk management

Products for interest rate risk management

Money market products

Commodity derivatives, physical gold and electric energy

sales

Investment banking

Bonds & Equities trading and brokerage

Primary issues (domestic bonds, eurobonds, commercial

papers)

Corporate finance advisory

Private Equity, Venture Capital, Acquisition Finance

Asset management

Investment advisory for institutional and private clients

Individual portfolio management

Research / Consultancy

Custodian and securities/artworks depository services

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Special Programmes for ČS Customers

TOP INNOVATION program

Being the first bank in the Czech Republic, Česká

spořitelna offers special programme to its corporate

clients, that is designed for investments into further

development through innovation of existing products,

services, processes or technologies

ČS is building a network of cooperating partners –

including advisors, venture funds, professional

associations etc.

TOP INNOVATION programme includes:

Complete product range of bank financing

Benefits in the form of interest benefit from EIB

resources

ČMZRB subsidized loan

Hedging of energy and commodity prices

Advisory & education programmes focused

on innovation management

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Special Programmes for ČS Customers

InnovFin Programme (guarantees) of EIF

After successful implementation of the RSI guarantee of

the EIF in 2012, the second guarantee line InnovFin was

signed in 2015

The guarantee further develops programme TOP

Innovation and makes it more attractive to ČS customers

Key parameters of the guarantee:

Focus on innovation projects

Guaranteed exposure 50%, total limit available

EUR 100 m

SME businesses – up to 250 employees, EUR 50 m

turnover or EUR 43 m assets; Mid-caps up to 500

employees

Eligible also for start ups – max. 3 years from

registration, max. 10% from total guaranteed limit

Loan amount – from EUR 25 thousand up to

EUR 7 m

Loan maturity – up to 10 years

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Special Programmes for ČS Customers

InnovFin Programme (guarantees) of EIB

The new guarantee of EIB now also provides

guarantees for midsize companies up to 3,000

employees

Follows up on the EIF guarantee, which covers

companies up to 500 employees

Key parameters of the guarantee:

Focus on innovation projects

Guaranteed exposure 50%, total limit available

EUR 100 m

Midsize companies – up to 3,000 employees

without any limit on turnover or assets

Loan amount – up to EUR 40 m

Loan maturity – up to 5 years

Another guarantee programme is EaSI*

The guarantee is focused on financing of small start ups up to CZK 600 thousand. Together with InnovFin credit lines, ČS

covers the whole spectrum of loans (from start ups up to midsize companies) by guarantees of EU financial institutions.

In this area ČS is the market leader

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*Programme for Employment and Social Innovation

Special Programmes for ČS Customers

Global Loan EIB

Global Loan is intended to support the projects realized

by municipalities, SMEs and midsize companies up to

3,000 employees, in the form of advantageous interest

rate

Definition of SME:

1. Annual turnover up to

EUR 50 m

2. Up to 250 employees

3. Independence

Midsize companies – up to 3,000 employees without

the turnover or assets limit

ČS has signed contracts with the EIB in the total

volume of EUR 1,400 m and has supported more

than 1,000 projects

Up to 100% of eligible project costs can be financed

from Global Loan

Global Loan can be connected with support

programmes of European Commission: guarantee

programmes of EIF and EIB

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Corporate Social Responsibility

Making Good Things Happen

▸ Applications

For tw o and a quarter years, w e piloted a simple and modern

w ay to help people in need. Through Melinda, our mobile donor

application, our clients have donated over CZK 1 million for sixty

projects operated by various NGOs.

Now they can use Darujme.cz, a unique fundraising portal of

Nadace VIA, for w hich w e provide a payment gatew ay.

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▸ CultureWe support a w ide range of cultural events to make them as

accessible as possible and keep them for future generations. We

opened 2018 w ith the New Year's concert of the Czech

Philharmonic, w hose main partner w e have been since 2015.

Other events of this year include the festivals of Smetanova

Litomyšl, Metronome, Colours of Ostrava and Kefír.

Our Erste Premier partnered w ith the Czech Grand Design

Awards this year.

▸ SportsAs the partner of the Czech Olympic Committee, w e were

represented at the w inter games in Pyeongchang. In cooperation

w ith the YouTuber Karel Kovář know n as KOVY, w e prepared a

special program for sports fans on our social netw orks. More

than 877 thousand unique users saw our contributions and gave

us around 8,500 likes.

In the w inter season, w e supported the traditional Ski for Life

competition.

▸ Česká spořitelna FoundationČeská spořitelna Foundation is the largest banking foundation

in the Czech Republic. It pursues systemic change in education

and social enterprise. Every year, it invests roughly

CZK 60 million into the development of our civil society.

In January 2018, tw o spin-off foundations w ere created: Učitel

naživo, z. ú. and Elixír do škol, z. ú. In January 2018, the

Foundation also announced the w inners of the 4th anniversary of

the Floccus Award.

▸ Students University of Economics in Prague w as our f irst partner in the

academic w orld, and this year w e signed the 16th cooperation

agreement in the role of its chief partner. Later w e added further

higher teaching institutions, and now w e cooperate w ith

7 colleges and 2 faculties all over the country. We also support

TEDx events, a number of incubators, accelerators and youth

competitions . We communicate w ith students on the Facebook

page Pomáháme dobrým myšlenkám and elsew here.

▸ Financial literacyThe Abeceda peněz (Money Basics) project introduces the w orld

of business and finance to primary school pupils. The activities of

pupils accompanied by our employees culminate in sales fairs in

our branches. In March 2018 alone, 30 such events w ere held.

Roughly 10,000 people visited the DEPO2015 centre to see the

interactive exhibition called Show Me the Money that targets

pupils too.

.

Contact

Česká spořitelna, a. s.

Olbrachtova 1929/62

140 00 Praha 4

Czech Republic

Tel: +420 956 711 111

Fax: +420 224 641 511

Green line: 800 207 207

E-mail: csas@csas.cz

Internet: www.csas.cz

SWIFT: GIBA CZ PX

Reuters: SPOPsp.PR