RBI – at a Glance · Dec. 2016 Pan-European GarantiBank EUR 152,500,000 DiversifiedPayment Rights Joint Lead Arranger Jan. 2017 Turkey Raiffeisen –Leasing GmbH EUR 437,800,000

RBI – at a GlancePresentation on the occasion of the Annual Meeting and Business Forum of theEuropean Bank for Reconstruction and Developmment, May 2017, Nicosia

Table of Contents

1Selected Products Page 7

Recent Financial Results and Strategic Update Page 19

The Raiffeisen Banking Group Page 33

Market Environment in Austria and CEE Page 36

Raiffeisen Bank International – An Overview Page 3

2

3

4

5

May 2017EBRD Annual Meeting, Nicosia 2

Raiffeisen Bank InternationalAn Overview

3EBRD Annual Meeting, Nicosia May 2017

Who we are

� In March 2017, the merger of RZB and RBI took place. The combined bank operates under the name Raiffeisen Bank International AG

� RBI is a leading corporate and investment bank for Austria‘s Top 1,000 companies and for WesternEuropean commercial customers

� A leading universal bank in Central and Eastern Europe (CEE) with one of the largest networks among Western banking groups – targeting corporate customers, SMEs, private individuals as well as financial institutions and sovereigns

� A niche player on the international markets, operating representative offices as well as service branches atselected Asian and Western European locations

� Around 50,000 employees service approx. 17.0 million customers througharound 2,500 business outlets

� RBI is part of the Austrian Raiffeisen Banking Group, the country´s largest banking group, and acts as central institute of the regional Raiffeisenbanks

� RBI‘s shares are listed at the Vienna Stock Exchange

� The regional Raiffeisen banks hold approx. 58.8 per cent of the share capital, the remainder is in free float


At a Glance

Moody’s ratings for RBI Network Banks

RBI Ratings

RBI‘s worldwide presence spans over 27 countries with subsidiarybanks, branches, representative offices and other financialservice providers.

14 markets of the region are covered by subsidiary banks; additionally the Group comprises numerous other financial service providers, for instance in the fields of leasing, asset management and mergers and acquisitions.

Selected key figures

Customers: ~ 17.0 million

Business outlets: ~ 2,500

Employees: ~ 50,000

Consolidated Profit FY/2016: € 886 million

Market capitalisation: ~ € 5.8 billion

(pro forma figures of the combined bank as of 31 December 2016)

RBI and its network banks have received numerous awards and distinctions, the most recent include:Bank of the Year in CEE – Global Finance, 2017

Bank of the Year in CEE – The Banker, Nov. 2016

Best Bank in CEE & CIS – EMEA Finance, 2015

Best Investment Bank in Austria – EMEA Finance, 2015

Best Bank in CEE – Global Finance, 2015

Best Bank in CEE – Euromoney, 2014

Best Bank in CEE & CIS region – EMEA Finance, 2014

Best Bank in CEE – Global Finance, 2014


Long term Outlook Short term

Standard & Poor's

BBB+ negatve A-2

Moody's Baa1 stable P-2

Tatra banka, Slovakia

Baa1 RuRD P-2

Raiffeisenbank, Russia

Ba2 Negative NP

Raiffeisenbank, Bulgaria

Ba2 RuRD NP

Raiffeisen Bank, Romania

Ba1 RuRD NP

Raiffeisen Bank Aval, Ukraine

Ca Negative NP

Geographic Footprint

Austria, #3

Loans: EUR 24.8 bn

Business outlets: 3

Bulgaria, #6

Loans: EUR 2.2 bn

Business outlets: 138

Albania, #2

Loans: EUR 0.8 bn


Kosovo, #1

Loans: EUR 0.5 bn


Serbia, #5

Loans: EUR 1.2 bn


Romania, #5

Loans: EUR 4.9 bn


Russia, #11

Loans: EUR 7.8 bn


Belarus, #7

Loans: EUR 1.0 bn


Ukraine, #8

Loans: EUR 1.9 bn


Croatia, #5

Loans: EUR 2.8 bn


Bosnia & Herzeg., #2

Loans: EUR 1.2 bn


Czech Republic, #5

Loans: EUR 9.5 bn


Hungary, #5

Loans: EUR 3.1 bn


Slovakia, #3

Loans: EUR 8.6 bn


� Leading regional player with CEE presence of over 30 years servicing approx. 17 million customers

� Covering 15 markets (incl. Austria), thereof eight are EU members and Serbia and Albania have candidate status

� Top 5 market position in 10 countries

� Strong market position with Austrian corporates focusing on CEE

Note: Position based on loans and advances to customers as of 30/09/2016; business outlets are as of 31/12/2016. Additionally, RBI operates leasing units in Slovenia, Moldova and Kazakhstan.

Central Europe (CE)

Southeastern Europe (SEE)

Eastern Europe (EE)Poland, #9

Loans: EUR 8.1 bn



Selected Products

EBRD Annual Meeting, Nicosia 7May 2017

8

� RBI has a long and proven tradition, working with Financial Institutions and Sovereign clients in many markets around the world and in particular in the CEE/CIS region.

� Having a holistic approach towards the business with our customers, FI&S offers the entire range of RBI products towards Banks, Sovereigns and Institutional Clients.

� A broad range of financial products, such as Transaction Banking, Treasury solutions, Capital Market and Securities Services or Asset Based Financing solutions are offered by a multinational team of account managers that is based in Vienna or in our subsidiaries and acts as a single point of entry into RBI Group.

Axel SummerHead of Financial Institutions & Sovereigns Tel.: [email protected]

Harald KreuzmairHead of Institutional Clients Tel.: [email protected]

Financial Institutions & Sovereigns

EBRD Annual Meeting, Nicosia May 2017

Low Value Payments to:

Austria

� Payment orders in EURO up to EUR 50,000

� LVP to Austria covers all Austrian banks

� Direct membership in European clearing systems EBA and TARGET 2/SSP

� Tailored pricing � Guaranteed OUR flat fees per item

� Direct correspondents for SHA/BEN payments � Rebates are offered:

- Refund for commercial payments with charging options BEN & SHA � earn money by sending payments to RBI

� Availability of Inhouse Clearing:

- Special pricing for transfers between 2 Loro correspondent bank accounts within RBI

� STEP2 indirect participation for SEPA payments

- Send SEPA payments via dedicated lines (Connect: Direct, FTP/SFTP, etc.)

� Online reporting services

� International Customer Service Desk

Cash ManagementEUR Clearing Products for Financial Institutions

EURO Clearing

EUR Clearing – Special OUR products

International Low Value Payments

� Single flat fee for 10 countries & 5 currencies by signing one single contract

� Payments up to EUR 12,500 or equivalent in the local currency

In EUR: Finland, France, Germany, Italy, Spain, Switzerland, ChinaIn FCY: Denmark (DKK), Norway (NOK), Sweden (SEK), Switzerland (CHF)

Commercial Payments to:

Germany, France, Finland, Turkey, China

� Beneficiary receives full amount

� Flat fee without additional third party charges

Robert Glavas Head of FI SalesTel: + 43-1-71707-2789 [email protected]

EBRD Annual Meeting, Nicosia May 2017 9

� Eurobonds & EMTN Programmes Public bonds for international placement, usually listed and governed by English law

� Loan-Participation Notes (LPN) Public notes linked to loan documentation, usually listed and governed by English law

� Private Placements (PP) Tailor-made solutions with one or several investors, limited documentation, and not listed

� Local Currency Bonds Public bonds for local and/or international placement in the local currency

� Rating Advisory Support through the rating process with management, strategy, delivery and assignment of ratings from all major rating agencies

Short-term and cost efficient instruments with simplified documentation and more flexibility

� Commercial Paper(CP) & ECP Programs

� Syndicated Loans Syndicated financing on common terms and conditions governed by commondocumentation

Certificates of Indebtedness targeting a limited investor base, arranged under simplified documentation (German Law) and not listed

� Schuldscheindarlehen

Mathias Renner Head of Group Investment BankingTel.: + 43-1-71707-2123 [email protected]

� Subordinated Debt Products Issuance of subordinated debt instruments including CRD IV compliant bank capital (i.e. AT1 and Tier 2).

Debt Capital Markets

EBRD Annual Meeting, Nicosia

Dedicated teams with extensive DCM expertise, one for Corporates, one for Financial Institutions & Sovereigns are at the issuers disposal for the various products, such as:

10May 2017

EUR 2,000,000,000

1.875% Fixed Rate Bonds

due 2037

BOOKRUNNER

Mar 2017 Slovakia

USD 600,000,000

5.125% Senior Bonds

due 2022

BOOKRUNNER

Jan 2017 Russia

EUR 1,000,000,000

1.625% Senior Bonds

due 2026

BOOKRUNNER

Mar 2017 Germany

PLN 900,000,000

Tap of 2.750% Fixed Rate Bonds due 2026

BOOKRUNNER

Mar 2017 Poland

USD 600,000,000

7.50%10.5NC5.5 Tier 2 Bond due 2027

BOOKRUNNER

Mar 2017 Russia

11

� RBI is a sales powerhouse, focused on the regional investors in Western Europe and the CEE region, with strong pan-European distribution capabilities

� RBI has strong relationships with key European investors based on trust and outstanding execution capabilities

� RBI has a proven track record as a bookrunner of choice for international Debt Capital Markets transactions

� RBI is dedicated to support its clients throughout the new issue process and has a strong focus on giving best advice to clients

Nicolaus HagleitnerHead of Group Capital Markets Tel.: +43-1-71707-1467 [email protected]

Bulgaria 2 Poland 3

Croatia 2 Romania 2

Czech Republic 2 Russia 4

Hungary 3 Slovakia 2

Salesforce in CEE & CIS

Austria, Germany 9

3

5

UK

Rest of Europe

Salesforcein Western Europe

New York 3

Salesforcein USA

Fixed Income Sales


Stefan SteurerHead of Institutional Sales Tel.: +43-1-71707-1102 [email protected]

May 2017

12

� Group Securities Services� Sub-custodian services provided in Austria and 17 other CEE markets� ISO 9001 certified GSS Operations Center in Vienna covering the region (clearing,

settlement, safe keeping, asset servicing)� Global Custodian services provided to institutional investors based in the CEE countries� EUR 190 billion client assets under custody

� Fund Administration� Market leader in fund administration in Austria� Complete Product Range: OGAW, AIF and Real Estate Funds� Full support of mid-office functionalities� Among Top 3 providers in every market in CEE (i.e. regional market leader)

� Fund Brokerage and Order Management� Fund-pooling of Austrian Funds, Foreign funds and Hedge Funds� Contact to nearly 300 Fund companies � Fully automated Order-routing and STP for Equities, ETFs and Certificates to cover 60 Stock

exchanges worldwide� Client service daily from 8:00 am to 8:00 pm� Various electronic connection possibilities for our clients: SWIFT, Internet (G-Brokerage Tool) and

GEOS

Martin Hofer Head of Fund Services & Infrastructure SecuritiesTel.: + 43-1-71707-3716 [email protected]

Attila Szalay-BerzeviczyHead of Group Securities ServicesTel.: + 43-1-71707-8252 [email protected]

Group Securities and Fund Services


The ABF product group uses securitisation and asset based funding techniques to provide financing solutions to corporate and FI clients. We focus on specific asset classes with market leading expertise – especially Trade Receivables, Consumer Assets, RMBS, Diversified Payment Rights and Subscription Credit Facilities.

Your advantage

• Generating a maximum of liquidity against your asset base

• Protection of existing bank and capital market facilities/lines

• Diversification and implementation of innovative and alternative funding sources

• Balance Sheet management by disposal of the sold receivables

• Consequently increased ratings and credit scores by banks, deliverers and rating agencies

• Hedging against potential debtor defaults as a result of the non-recourse purchase of the relevant receivables

Our expertise

• Our team has extensive transaction experience in the asset class since 1993

• Full product range covers structuring, syndication & sales but also b/s lending and hedging solutions

• Close co-operation with Network Banks in CEE and subsidiaries to the benefit of our clients

Asset Based Finance


Mathias Renner Head of Group Investment BankingTel.: + 43-1-71707-2123 [email protected]

13

Rusal Marketing GmbH

USD 50,000,000

Trade Receivables

Arranger

Dec. 2015 Switzerland

May 2017

EGGER-Gruppe

EUR 75,000,000

Trade Receivables

Arranger

Dec. 2016 Pan-European

GarantiBank

EUR 152,500,000

Diversified Payment Rights

Joint Lead Arranger

Jan. 2017 Turkey

Raiffeisen –Leasing GmbH

EUR 437,800,000

Auto-Leasing

Arranger/ Lead Manager

Sep. 2016 Austria

EuroChem Agro GmbH

EUR 150,000,000

Trade Receivables

Arranger

Nov. 2016 Germany

SCGA 2016-2

EUR 1,500,000,000

Auto Loans

Arranger/ Lead Manager

July 2016 Germany

Abc SME Lease Germany 3

EUR 433,000,000

SME LeasesArranger/ Lead

Manager

Oct. 2016 Germany

Cash and Liquidity Mgmt. / Corporates

Efficient Cash and Liquidity Management (CM) isindispensable in times of globalized markets and increasing competition.

Why RBI?

RBI’s CEE footprint offers optimal coverage in the region with competitive and state-of-the-art CM products.

International expertise combined with local specialists

RBI’s strength lies in the combination of proven international CM expertise in Vienna and the profound local know-how of its CM specialists on the ground.

RBI supports your efforts to act globally and to operate centrally if required

We offer flexible solutions according to our clients’ needs. Our Global Account Management set-up ensures fast and efficient decision taking with clear competence allocation in order to provide best service for our customers.

Selected Reference Clients prove RBI’s excellence in Cash and Liquidity Management

EBRD Annual Meeting, Nicosia 14

Susanne Prager Head of Cash ManagementTel.: + 43-1-71707-3480 [email protected]

May 2017

� We support you in the entire business chain, from contractual negotiations until final settlement of payment

� Due to our international team we can communicate with our customers in German, English, Russian, Italian, Spanish, French, Turkish, Serbo-Croat and Czech

� You can benefit from our extensive know-how and our long-lasting experience in commodity transactions

� Apart from English and German we are also able to check documents issued in Russian and French language

� RBI cooperates – among other important international institutions – with the World Bank, IFC (International Finance Corporation), EBRD (European Bank for Reconstruction and Development), ADB (Asian Development Bank) and ICC (International Chamber of Commerce)

� We are a member of the Unico Banking Group, the platform of co-operative banks in Europe, e.g. Rabobank, DZ Bank, Credit Agricole, Iccrea Holding and Pohjola Bank

� We handle all types of guarantees and guarantee equivalents such as standby letters of credit and suretyships

� We answer your guarantee-specific questions when advising guarantees of your business partners’ banks to you, issue tailor-made guarantees and keep you updated on your guarantee portfolio with us

� We support you during contractual negotiations, including structuring of complex guarantee transactions and adjusting the contents of the guarantee to your special requirements and provide specific and tailor-made solutions to you

� Close cooperation with ICC and high international reputation: Andrea Hauptmann (Head of Guarantees Dptm.) is a member of the Executive Committee of the ICC Banking Commission and chairs the ICC Task Force on Guarantees

� Cooperation with supranational institutions under their trade facilitation programs e.g. EBRD, IFC and ADB

� Specific know-how in structuring various kinds of syndicated guarantee facilities

� High competence and many years of experience in all types of guarantee transactions with various foreign banks and customers

Trade and Export Finance

Guarantees

Whether it comes to domestic or cross-border business, RBI supports you in minimizing the potential risk and to find the best financing solutions.

Letters of Credit


� We accompany your long-term investment projects as well as Research, Development & Innovation (RD&I) projects at home and abroad

� RBI’s extensive funding advisory service and know-how ensures the perfect subsidy mix and an ideal financing structure for your needs

� Your benefits: cash funding, interest benefits, state guarantees

� We offer subsidized loans at attractive conditions due to the cooperation with national and international partners, e.g. European Investment Bank, ERP-Fonds, KfW

� Risk sharing facilities can help you to find risk taking partners for your projects, e.g. Austria Wirtschaftsservice (AWS), Forschungsförderungsgesellschaft (FFG)

� We offer Export Insurance with international Export Credit Agencies (ECA) and Private Insurers (PRI) worldwide

� We provide international ECA multi-sourcing and act as the center of competence for Export Finance within RBI

� We maintain best relations to exporters and importers (with special focus on the CEE region, in particular the CIS

� Our worldwide ECA cooperations include OeKB, Euler-Hermes, SERV, COFACE, EKN, FINNVERA, SACE, OND, GIEK, ATRADIUS, EDC, CESCE, US-Exim, K-SURE, EGAP, HBOR, MEHIB, SID, KUKE, Eximbanka, Eximbanka SR

� Our finalized export finance transaction volume in percentage by region: 77% Europe, 17% Asia, 3% North America, 2% Africa and 1% South America.

Trade and Export Finance

Export Finance

Long-lasting cooperation with many of our clients underline our extensive know-how and our commitment in this business area

Investment Finance

May 2017 16EBRD Annual Meeting, Nicosia

Raiffeisen Capital Management*

*Raiffeisen Capital Management stands for Raiffeisen Kapitalanlage-Gesellschaft m.b.H.

Asset Manager of the Raiffeisen Banking Group

Sales activities in 20 countriesMain focus on Austria, Germany, Italy, France/Benelux, Switzerland and Liechtenstein, Central and Eastern Europe

EUR 31,2 bn assets under management~ 60% institutional business (as of March 2017)

Our offering:Bespoke solutions for core client segments; Extensive range of mutual funds for institutional and private investors

Longstanding expertise in bond management Sovereigns, Credits, Emerging Markets, Overlays (Duration, FX, Credit,..) as well as unconstrained management solutions

Profound know-how in Emerging Markets equities CEE, Asia and Global

Innovative Multi-Asset SolutionsActive Risk Parity solutions, tactical and strategic asset allocation, asymmetric risk strategies

4 core competences


SRI – Sustainable & Responsible Investments(equity fund, mixed funds, bond fund)

Raiffeisen Research

� RBI backs up its product capabilities and sales expertise by extensive research

� The Raiffeisen Research team publishes reports about Austria, Emerging Europe, Russia and the CIS as well as on other major international markets on a regular basis

� RBI has a team of macro-analysts in Vienna and the regional markets it is represented in, providing comprehensive insights into market developments

� Represented on the Austrian Government Debt Committee

www.raiffeisenresearch.com


Recent Financial Results and Strategic Update


In EUR mn FY/2016 FY/2015 y-o-y

Profitability

Net interest income 2,935 3,327 (11.8)%

Net fee and commission income 1,497 1,519 (1.5)%

Net trading income 215 16 >500.0%

Recurring other net operating income 45 66 (31.8)%

Operating income 4,692 4,929 (4.8)%

General administrative expenses (2,848) (2,914) (2.3)%

Net provisioning for impairment losses (754) (1,264) (40.3)%

Other results (204) (40) 409.8%

Profit/loss before tax 886 711 24.6%

Profit/loss after tax 574 435 31.9%

Consolidated profit/loss 463 379 22.2%

31/12/2016 31/12/2015 y-o-y

Asset Quality

NPL ratio 9.2% 11.9% (2.7)PP

NPL coverage ratio 75.6% 71.3% 4.4PP

Loans to customers 70,514 69,921 0.8%31/12/2016 31/12/2015 y-o-y

Regulatory Capital Ratios

Common equity tier 1 ratio (fully loaded) 13.6% 11.5% 2.1PP

Common equity tier 1 ratio (transitional) 13.9% 12.1% 1.8PP

Total capital ratio (fully loaded) 18.9% 16.8% 2.2PP

Total capital ratio (transitional) 19.2% 17.4% 1.8PP

RBI: Financial Highlights FY 2016


RBI: Development of Financial Ratios in FY 2016

RoE (Consolidated) and RoTE1 Cost/Income Ratio

Net Interest Margin1 Provisioning Ratio1

1) Annualized

RoE RoTE

59.1%65.0% 61.8% 60.5% 60.7%

1–12/2015 1–3/2016 1–6/2016 1–9/2016 1–12/2016

3.00%

2.73% 2.76% 2.76% 2.78%

1–12/2015 1–3/2016 1–6/2016 1–9/2016 1–12/2016

1.64%

0.46%

1.11%0.93%

1.05%

1–12/2015 1–3/2016 1–6/2016 1–9/2016 1–12/2016

4.8% 5.8% 5.3%6.6% 5.8%

7.7% 8.0% 7.7%

9.5%8.6%

1–12/2015 1–3/2016 1–6/2016 1–9/2016 1–12/2016


354

886

(203)

(495)

363

649

150

67

Central Europe SoutheasternEurope

Eastern Europe GroupCorporates

GroupMarkets

Non-Core Corporate Center& Reconciliation

Group

RBI: FY 2016 Distribution of Profit before Tax

Note: Percentage changes are y-o-y

1

In EUR mn

1) Due to the mostly internal nature of Corporate Center, amount is netted with Reconciliation for illustration purposes

39.4%

18.2%

46.6%(29.1)%

44.4%

14.3%

24.6%

(22.7)%


387

946

(203)

(454)

361

637

341

(123)

CentralEurope

SoutheasternEurope

EasternEurope

GroupCorporates& Markets

CorporateCenter

Non-Core Reconciliation FY/2016

Combined Bank: New Segments Distribution of Profit before Tax - FY 2016

In EUR mn


12% initial target by 2017

RBI: Transformation Program Summary

Exit of non-core

markets almost

completed

Repositioning in

selected markets

Reduced risk

Reduced

complexity

� Exit of Asia almost completed

� Exposure in US significantly reduced

� Bank in Slovenia sold

� Polish leasing business sold, Polish bank to be IPO‘d

� Russia: exit of selected businesses, footprint optimized

� Hungary: branch network streamlined, profitability

improved

� Ukraine: Successful turnaround

� Risk costs significantly lower (down 57% vs 2014)

� RWA reduced by 13% (EUR 8.7 bn) vs end 2014 (24% vs Sep 2014)

� Improved asset quality, NPL ratio down to 9.2%

� Merger with RZB to simplify group structure and remove future growth constraints for RBI

�

�

�

�

Significantly improved capitalization

(CET1 ratio fully loaded)


10.0%13.6%

12.4%

2014 2016 CombinedBank2016

May 2017

Merger: Key Objectives of Transaction

Limited Adaptation of

Proven Business Model

ImprovedGovernance

� More efficient organizational and governance structure

� Faster and more focused decision making processes within the organization

� Elimination of overlapping functions

Improved Overall Capitalization ofUltimate Group

� Optimization of capital planning and allocation

� Elimination of current and future minority deductions on RZB level, which also constrain RBI

IncreasedTransparency

� Alignment of shareholder (RBI-centric) and regulatory (RZB-centric) views

� Improved transparency for all stakeholder groups through reduction of structural complexity


Combined Bank: Funding Overview

Funding Structure (Dec 2016) Loan/deposit ratio

Total: EUR 117 bn

Overview 2016 Funding Plan

93%

95%94%

92%91%

Dec 15 Mar 16 Jun 16 Sep 16 Dec 16

Customer deposits

69%

Short-term funding

15%

Medium & long-term funding

13%

Subordinated liabilities

4%

� Funding mix dominated by 69% share of customer deposits (up 1.8PP q-o-q)

� Loan/deposit ratio down by 0.5PP q-o-q to 91.3%

� Retail deposit inflow is expected to remain strong in 2017, high stickiness despite low interest rates

� Wholesale funding demand for 2017 approximately EUR 3 bn

� Diversification of funding continues, including unsecured and covered bonds, international and local markets


11.9% 11.4% 10.4% 10.2% 9.2%

71% 70% 72% 72%76%

Dec 15 Mar 16 Jun 16 Sep 16 Dec 16

NPLs as % of customer loans Coverage ratio

RBI: NPL Development

NPLs as % of Customer Loans and NPL Coverage Ratio NPL Breakdown by Segment (31 Dec 2016)

NPL Ratio Development in 1-12/2016

1) Including exposure to banks

� NPLs of EUR 6,486 mn down by EUR 1,843 mn YTD; in 2016 NPL sales of EUR 1,187 mn; remaining change mostly from write-offs of completed work-out cases

� FX impact of plus EUR 52 mn YTD, mainly from RUB appreciation� NPL allocation (YTD net of FX effects) mainly Belarus (up EUR 47 mn)

and Albania (up EUR 23 mn)� NPL release (YTD net of FX effects) in Group Corporates (down

EUR 587 mn), Ukraine (down EUR 299 mn), Hungary (down EUR 252 mn) and Group Markets (down EUR 233 mn); Slovenia down EUR 121 mn due to sale of bank

� NPL ratio down 2.7PP to 9.2% YTD; highest decrease in Group Corporates with 4.7PP and Eastern Europe with 4.2PP

� NPL coverage ratio up 4.4PP to 75.6% YTD driven by Group Corporates (up 9.2PP) and Southeastern Europe (up 8.1PP); decrease in Central Europe (down 4.3PP)

5.5%10.5%

14.7%4.6% 1.9%

17.7%

71.0%79.7% 85.7%

65.9% 71.9% 66.6%

CE SEE EE GroupCorporates

GroupMarkets

Non-Core


Comments (YTD)

11.9% 0.1%

(0.1)%

(2.7)%

9.2%

NPL ratioDec 15

FX effects Loanvolumechange

Organicchanges

and disposals

NPL RatioDec 16

1


Credit risk internal rating approach

42%Credit risk standard approach

40%

Operational risk13%

Market risk4% Credit risk CVA risk

1%

Combined Bank: Key Risk Ratios

NPL as % of Customer Loans and NPL Coverage Ratio

Development of Provisioning Ratio

11.1% 10.7% 9.8% 9.6% 8.7%

71% 70% 72% 72%75%

Dec 15 Mar 16 Jun 16 Sep16 Dec16


105

298

98

2570.41%

1.49%

0.49%

1.28%

Q1/2016 Q2/2016 Q3/2016 Q4/2016

Net provisioning for impairment losses in EUR mn

Net provisioning ratio (q-o-q) (average customer loans)

RWA (total) Split by Risk Category (31 Dec 2016)

Total: EUR 68 bn

Comments (y-o-y)

� Combined Bank benefits from low risk profile of contributed business; NPL ratio of contributed business is 4.4%

� NPL ratio down 2.4PP to 8.7% driven by NPL sales and write-offs; highest decrease in Eastern Europe with 4.2PP and Group Corporates & Markets with 3.9PP

� NPL coverage ratio up 3.9PP to 75.2% driven by Southeastern Europe (up 8.1PP) and Group Corporates & Markets (up 5.2PP); decrease in Central Europe (down 4.6PP)

� Loan loss provisioning for loans and advances decreased by 39.8% or EUR 501 mn due to improved risk situation in most markets; contributed business with only EUR 3 mn loan loss provisioning


Combined Bank: Outlook and Targets


� For the Combined Bank, we target a CET1 ratio (fully loaded) of around 13% in the mediumterm

� After stabilizing loan volumes, we look to resume growth with an average yearly percentageincrease in low single digit area

� We expect net provisioning for impairment losses for 2017 to be below the level of 2016 (EUR754 million)

� We expect an NPL ratio of around 8% by the end of 2017, and over the medium term weexpect this to reduce further

� We further aim to achieve a cost/income ratio of between 50 and 55% in the medium term,unchanged from our previous target

� Our medium term return on equity before tax target is unchanged at approximately 14%,with a consolidated return on equity of approximately 11%

29May 2017

Growing in Selected CEE Markets


Slovakia

Romania

Czech Republic

Russia

Bosnia & Herzegovina

Bulgaria

Hungary

Croatia

Belarus Poland

Serbia

Ukraine

Projected RWA growth1

Albania

EUR 1,584 mn

EUR 3,597 mn

EUR 1,399 mn

EUR 1,559 mn

EUR 1,728 mn

EUR 2,872 mn

EUR 5,865 mn

Kosovo

EUR 533 mn

EUR 1,867 mn

EUR 6,315 mn

EUR 4,357 mn

EUR 8,294 mn

EUR 1,593 mn

EUR 5,024 mn

2) RWA growth mainly driven by regulatory adjustments

FY 2016 RWA Projected RWA growth1 FY 2016 RWA

(2)

(2)

1) based on budgeted 3 year CAGR

30May 2017

Recent developments

Rightsizing in Poland


� First steps towards optimizing costs were taken in 2016: 36 branches closed (11%) and headcount down 9% (year-on-year, excluding impact of sale of leasing business)

� Net interest margin stabilized in 2016

� Various proposals from political parties on Swiss franc denominated mortgages, but nothing tangible yet

� Preparation for the IPO began in January, with 15% to be listed on the Warsaw exchange

� Operational measures of the rightsizing program decided on 10 April 2017

Strategy

� From 2019 we strive to operate with a cost/income ratio of below 55%

� Rightsizing program started in Q1 2017: Increase digitalization of retail business model with focus on self-service solutions, remote channels and digital behaviors

� Optimization of branch footprint: 60 to 70 branches closed by 2018 and up to 90 branches converted to cost efficient formats by end 2019

� Planned cost saving initiatives of around EUR 50 mn by end 2019 (vs. 2016), FTE reduction between 850 and 950, restructuring costs of around EUR 10 mn recognized in H1 2017

� Digital transformation investment of around EUR 25 mn over the next two years

� Continue successful corporate coverage and optimize product offerings

31May 2017

Russia: Benefiting from our Strong Position

32EBRD Annual Meeting, Nicosia

Recent developments

� Footprint optimization and RWA reduction as part of the transformation program completed

� Net interest margin increased slightly to 5.6% in 2016 (from 5.4% in 2015)

� Lower provisioning ratio (1.99% in 2016 vs 2.14% in 2015) reflecting improved credit risk situation in retail and corporate business

� NPL ratio at 6.3% (down 1.7PP y-o-y) and NPL coverage ratio stable at around 75%

� RUB appreciated 25% in 2016 driven by rising oil prices

� Central bank key rate slightly reduced, growth remains subdued and inflation moderate

Strategy

� We remain committed to the Russian market, focusing on high quality customer service and further improvements in operational efficiency

� RWA reduction program is complete. The fundamentals are good and we look to focused growth in selected areas

� Corporate market: targeting multinational customers and largest local corporates, expanding coverage of midcaps with a balanced risk approach and with a particular focus on commission based products

� Retail market: targeting affluent customers and SME business and increasing our digital presence

May 2017

The Raiffeisen Banking Group


Combined Bank Group Structure

Raiffeisen Banking Group (RBG)

8 Regional Raiffeisen banks

434 Raiffeisen banks (total c. 1,500 outlets)

58.8% Free Float 41.2%

1.7 mn members (mainly private individuals)

� Raiffeisen Banking Group (RBG) – largest banking group in Austria with total assets of EUR 279.6 bn as of December 2016

� Solid funding profile of RBG based on a domestic market share of around 30% of total customer deposits, not least due to superior brand recognition

Three-tier structure of RBG:

1st tier: 434 independent cooperative Raiffeisen banks focusing on retail banking. They hold shares in the

2nd tier: 8 independent regional Raiffeisen banks focusing on corporate and retail banking. They hold approx. 58.8% of the share capital in the

3rd tier: Raiffeisen Bank International AG

CE SEE EE GC&MCorporate

CenterNon-Core1)

Protection schemes within RBG

RBG’s Institutional Protection Schemes (IPS): Protection scheme designed pursuant to CRR to ensure the liquidity and solvency of participating members. There are IPS at the regional level as well as one at the federal level. For details see page 62

Österreichische Raiffeisen Einlagensicherung eGen:

Statutory deposit protection scheme of RBG pursuant to the applicable EU legislation implemented in Austria

Raiffeisen Kundengarantiegemeinschaft Österreich (RKÖ): Voluntary supplementary scheme protecting customers’ deposits up to the economic reserves of the participating banks. RKÖ is implemented in seven Austrian provinces and includes RBI

Corporate Presentation

1) Non-Core to be dissolved from Q1 2017 onwardsNote: Data as of 12/2016


Raiffeisen Banking Group: History

Friedrich Wilhelm Raiffeisen (1818 – 1888)

� Social reformer, organized self-help for farmers

� His principles are still valid:

� Do not wait to be helped - help yourself!

� We are stronger as a group!

� 1862: first cooperative banking associationin Anhausen, Germany

� 1886: first Austrian Raiffeisen banking cooperative in Rosswein (today Razvanje, Slovenia) and Mühldorf, Lower Austria

� Organic growth over more than 130 years

35May 2017EBRD Annual Meeting, Nicosia

Market Environment in Austria and CEE


Austria: Economy without structural imbalances

37

Source: Thomson Reuters,

RBI/Raiffeisen RESEARCH

May 2017

Austria Euro area

Area (km² ´000) 83.9 2,759

Population (2016, mn) 8.7 337

GDP per capita (2016, EUR) 40,213 31,849

R&D spending (2015, % GDP) 3.1 2.1

Source: Thomson Reuters, Eurostat, RBI/Raiffeisen

RESEARCH

Austria2016 2017e 2018f

Euro area2016 2017e 2018f

GDP real (% yoy) 1.5 1.7 1.5 1.7 1.9 1.7

Unemployment rate (%) 6.0 6.2 6.3 10.0 9.4 8.7

Exports (real, % yoy) 1.7 2.8 3.2 2.7 4.6 4.0

Current account (% GDP) 2.0 2.1 2.2 3.4 3.3 3.1

Budget balance (% GDP) -1.3 -1.2 -1.1 -1.7 -1.4 -1.4

Government debt (% GDP) 83.8 81.4 79.8 89.3 88.3 87.2

Consumer prices (% yoy) 1.0 2.0 2.1 0.2 1.8 1.5

� Consistently positive current account balance

� R&D expenditure highest in the euro area


Macro Outlook

Development of Real GDP (%) General Market Trends

� Moderate but robust growth outlook in the euro area.ECB expected to continue expansionary monetary policy into 2018, but tapering expected in H2 2017 will support further moderate yield curve steepening

� Dynamics in Central Europe (CE) expected to remain steady with GDP growth around 3% in 2017. Growth momentum in Poland recovered and leading indicators signal a strong start to the year in CE as a whole. Private consumption and stronger EU transfers are expected to support growth

� Growth in Southeastern Europe (SEE) continues to surprise on the upside, with continued strong growth in Romania due to fiscal loosening. Bulgaria, Serbia and Croatia also performing well

� Stabilization in Russia, growth returned in Ukraine, Belarus is lagging. Stronger output data in Russia is mitigated by weak consumer demand, capping growth forecast at moderate levels. Some geopolitical risks remain (Ukraine and Belarus)

Source: RBI/Raiffeisen Research as of 1 March 2017

SEE Albania 2.6 3.5 4.0 4.0

Bosnia & Herz. 3.0 2.5 3.0 3.5

Bulgaria 3.6 3.3 3.3 3.3

Croatia 1.6 2.9 3.3 2.8

Kosovo 4.1 3.5 3.5 3.5

Romania 3.9 4.8 4.2 3.5

Serbia 0.7 2.8 3.0 3.0

SEE 3.1 3.9 3.7 3.3

Country 2015 2016e 2017f 2018f

CE Czech Republic 4.6 2.3 2.7 2.5

Hungary 2.9 2.0 3.2 3.4

Poland 3.9 2.8 3.3 3.0

Slovakia 3.8 3.3 3.3 4.0

Slovenia 2.3 2.5 2.7 2.5

CE 3.8 2.7 3.1 3.0

EE Belarus (3.8) (2.6) (0.5) 1.5

Russia (2.8) (0.2) 1.0 1.5

Ukraine (9.9) 2.2 2.0 3.0

EE (3.3) (0.1) 1.0 1.6

Austria 1.0 1.5 1.7 1.5

Germany 1.5 1.8 1.7 1.5

Euro area 2.0 1.7 1.9 1.7


June 2011

The H. Stepic CEE Charity provides a lifeline forvulnerable children and disadvantaged adolescents and women in Central and Eastern Europe.

Projects are implemented in an unbureaucratic,quick and cost-efficient manner.

How you can help:

Make a donation

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For more information please visit our website:

www.stepicceecharity.org


All financial and non-financial information and statistical data relating to Raiffeisen Bank International AG (RBI) are based on historical data. Such information and data are presented for illustrative purposes only.

Certain statements contained herein may be statements of future expectations and other forward-looking statements about RBI and its affiliates, which are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, words such as "may", ''will", "should", "expects", "plans", "contemplates",

"Intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions typically identify forward-looking statements.

By their nature forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As such no forward-looking statement can be guaranteed. Undue reliance should not be placed on these forward-looking statements.

Many factors could cause our results of operations, financial condition, liquidity and the development of the industries in which we compete, to differ materially from those expressed or implied by the forward-looking statements contained herein.

These factors include, without limitation, the following: (i) our ability to compete in the regions in which we operate; (ii) our ability to meet the needs of our customers; (iii) our ability to complete acquisitions or other projects on schedule and to integrate our acquisitions; (iv) uncertainties associated with general economic conditions particularly in CEE; (v) governmental factors including the costs of compliance with regulations and the impact of regulatory changes; (vi) the impact of currency exchange rate and interest rate fluctuations; and (vii) other risks, uncertainties and factors inherent in our business.

Subject to applicable securities law or similar legal requirements. we disclaim any intention or obligation to update or revise any forward-looking statements set forth herein. whether as a result of new information, future events or otherwise.

This document is for information purposes only and shall not be treated as giving investment advice and/or recommendation whatsoever.This presentation and any information (written or oral) provided to you does not constitute an offer of securities, nor a solicitation for an offer of securities. nor a prospectus or advertisement or a marketing or sales activity for such securities.The · shares of RBI have not been registered according to the U.S.Securities Act of 1933 (the "Securities Act") nor in Canada, U.K.or Japan.No securities may be offered or sold in the United States or in any other jurisdiction. which requires registration or qualification, absent any such registration or qualification or an exemption therefrom.These materials must not be issued, disclosed, copied or distributed to "U.S. persons" (according to the definition under Regulation S of the Securities Act as amended from time to time) or publications with general circulation in the United States. The circulation of this document may be restricted or prohibited in other jurisdictions.

For the United Kingdom:This presentation and related material,including these slides, (these "Materials") are for distribution only to persons who are members of RBI falling within Article 43(2) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order") or who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Promotion Order). (ii) are persons falling within Article 49(2) (a) to (d) ("high net worth companies, unincorporated associations etc.”) of the Financial Promotion Order. (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons").These Materials are directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which these Materials relate is available only to relevant persons and will be engaged in only with relevant persons.

Figures shown in the presentation are based on figures contained in the interim or annual report, as the case may be; however, figures used in the presentation have been rounded, which could result in percentage changes differing slightly from those provided in the respective report.

We have exercised utmost diligence in the preparation of this presentation. However, rounding. transmission. printing, and typographical errors cannot be ruled out. We are not responsible or liable for any omissions, errors or subsequent changes which have not been reflected herein and we accept no liability whatsoever for any loss or damage howsoever arising from any use of this document or its content or otherwise arising in connection therewith.

Disclaimer


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