BRRB presentation_ENG

Your new business partner in Belarus! February 2016© 2016 International Business

Content • Belarus: political update • Key tendencies & news • Belarus: ranks & figures • In brief • CG structure • TOP 5 banks in Belarus • Capital injections & funding base • Core business & special functions • Core business • Projects map • Social responsibility • Annexes© 2016 International Business February 2016

BELARUS: POLITICAL UPDATE Belarusian national ornament symbolizing clean & creative energyAlexander Lukashenko meets with Alexander Lukashenko meets with Alexander Lukashenko meets with Alexander Lukashenko meets withAngela Merkel, François Hollande, Johannes Hahn, European Commissioner Christine Lagarde, Managing Director of Heinz Fischer, President of AustriaVladimir Putin and Petro Poroshenko for European Neighbourhood Policy and the International Monetary Fundat Minsk summit Enlargement Negotiations 28 September, 2015 26 September, 2015 11–12 February, 2015 17 April, 2015 «Seen from Minsk, past 20 years were «... Lukaschenko hatte 2014 etwa die «The EU has signalled its intention to not so bad…Of the six countries in the Eingliederung der Krim durch Russland suspend some of the sanctions EU’s Eastern Partnership (EaP) program kritisiert. Nach Einschätzung von imposed on Belarus, in a move that Belarus has the highest income per Beobachtern wird er damit sein could bring President Alexander person bar oil-rich Azerbaijan …It Ansehen im Westen steigern…» Lukashenko out of its diplomatic avoided chaotic privatizations of Russia isolation.» and Ukraine, and has no oligarchs 11. Oktober 2015 straddling business and politics…» 12 October, 2015 11 Apr, 2015 3© 2016 International Business February 2016

KEY TENDENCIES & NEWS • Improvement of external trade balance and balance of payments (9M surplus 2.8% of GDP)© 2016 International Business • Lower inflation (YoY: 2014 - 18.1%; 2015 – 13.5%) • Keeping the balanced fiscal policies (11M budget surplus 2.7% of GDP) • Tightening of monetary policy: limitation of directed lending in 2016 • Floating exchange rate of Belarusian Rubles keep in force • Price liberalization in progress • IMF and Belarus made considerable progress in discussing a set of policies which could be supported by a 3Y Extended Fund Facility arrangement • EU has suspended sanctions against a number of Belarusian companies and citizens • Belarus has advanced 13 positions to rank 44th in Doing Business Ranking- 2016 • Increase in utility tariff cost recovery from 20% to 80 % • WB forecasts a 0.5% fall in GDP of Belarus in 2016 and it is projected to return to growth by 1% annually in 2017 and 2018 4 February 2016

BELARUS: RANKS & FIGURES Belarusian national ornament symbolizing growth & development RANKS Trade balance, % of GDP ▼ №1 producer 8% 2.8% №2 producer 4% 4.5% 0% №3 producer -4% -7.7% -11.4% -13.6% -2.1% -0.6% -8% -3.2% *potash -12% -16% №4 exporter 2008 2009 2010 2011 2012 2013 2014 9m'15 In European TOP-5 by number of graduates USD 18 161 GDP per capita 2014, #62 in World by IMF In World’s TOP-10 by moving towards business-friendly regulations 70% Maastricht criterion – 60% (World Bank Doing Business) 60% In World’s TOP-40 by creativity being the leader among the CIS 50% Legislative ceiling – 45% (Global Creativity Index-2015) 40%© 2016 International Business 30% 20% 10% 18.8% 24.9% 23.7% 22.8% 22.3% 28.2% 0% 2010 2011 2012 2013 2014 9m'15 Gross pub. debts, % of GDP ▲ Official website of the Republic of Belarus 5 February 2016

IN BRIEF • Founded in 2011 upon recommendations of IMF and World Bank • 100% state-owned DBRB Headquarters, Minsk • Classic development institution© 2016 International Business • Export finance leader in Belarus with 90% market share • Mandated by the Government as asset manager • The only Belarusian bank that has: -authority to initiate and change national financial & banking legislation -Government guarantee for all bond issues -Rep. Office in London -SME support credit program approved by World Bank • Team of 333 highly experienced professionals • B- by S&P / Fitch with «stable» outlook • IFRS FS since 2012 (on 6-12 m. basis) audited by KPMG • «Silver» by profit and equity among all Belarusian banks (Q3 2015) 6 February 2016

2015: KEY POINTS To stimulate economic growth in Belarus in 2015 DBRB has focused its activities on next key pointsManageable direct Social Export Support SME Hub International Advising on state programs Responsibility funding & economic financing Export finance Joint Hub for SME development To support platform based on financial and non- Investors relations DBRB was demographic financial support To implement best appointed with situation in Belarus OECD principles was established in Office in the City of world practices inexclusive rights for was successfully Belarus with DBRB London (UK) was Belarus industry all direct lending DBRB has established in leading role (as ofprograms financing developed and Belarus with DBRB today only 20% of established DBRB was (enforce from Belarus economy Around USD 500 m appointed as Jan.01, 2016). successfully leading role based on SME vs GovernmentDBRB will base this manages social 70% in developed total volume of Adviser for activity only on program «Big operations on industry reforming market criteria countries) (woodworking (efficiency and Family» DCMs sector as pilot macroeconomic effect from all project)financed projects)© 2016 International Business 7 February 2016

CG STRUCTURE (SUPERVISORY BOARD) Independent directors (science, public activity, Top business, int. business) Shareholders representatives (Government and National bank ) Andrei Kobyakov Prime Minister of the Republic of Belarus Chairman of the Supervisory BoardVasily Matyushevsky Vladimir Zinovskiy Risk Audit Budget & Mikhail Kovalev Anatol Kharlap First Deputy Prime Minister of Committee Committee Remuneration Dean of Economics Chairman of the Minister of the Republican Association Republic of Belarus Economy of the Committee Faculty of the of Industrial Enterprises Republic of Belarus Belarusian State University Vladimir Amarin Sergei Kalechits Our Supervisory Board is the Alexander Mashenski Daniel KrutzinnaMinister of Finance Deputy Chairman of the unique «fusion» of Top Officials Director General of the Managing Partnerof the Republic of Board of the National Joint Venture «SANTA Bank of the Republic of from financial & economic of independent Belarus spheres, representatives from IMPEX BREST» Ltd. management Belarus science and public and foreign consultancy experts. Civitta 8© 2016 International Business February 2016

TOP 5 BANKS IN BELARUS 26 banks operating in Belarus, incl. 5 banks controlled by the state 16 banks controlled by foreign capital Assets / Equity/ Profit (Q3, 2015) 0.0 10.0 20.0 0.0 1.0 2.0 3.0 0 25 50 75 100 14.3 Belarusbank 2.0 Belarusbank 86.8Belarusbank Development Bank 79.6Belagroprombank 5.2 Development Bank 0.8 Priorbank 56.1 50.7 BPS-Sberbank 3.5 Belagroprombank 0.7 Belgazprombank 31.6Development Bank 2.5 Bank BelVEB BPS-Sberbank 0.3 USD mln eqBelinvestbank 2.0 Priorbank 0.2USD bn eq USD bn eq Since 2012 we are member of «TOP 5 banks in Belarus» club© 2016 International Business 9 February 2016

CAPITAL INJECTIONS & FUNDING BASE USD 800 mln – DBRB capital as of October 01, 2015 (#2 among all Belarusian financial institutions) Capital Injections Dynamic 2011 2012 2013 2014 2015USD 4 mln USD 351 mln USD 597 mln USD 104 mln USD 134 mln DBRB is #1 by CAR (Tier 1) among all world development institutions Funding Base Composition Own funds, including capital Local Bonds External Funding Social prgm. “Big Family” injections (BYR and FX nominated) (Syndications / BB Loans) (up to USD 120 mln per year)© 2016 International Business 10 February 2016

CORE BUSINESS & SPECIAL FUNCTIONS Core business The main platform of Special functions DBRB activities – is to State Programs Single coordinator of Financing provide unique State programs lending financial solutions on International Government agent Activities non - competitive on DCMs basis with commercial Consulting SME Support banks Export Support Export Finance Solutions© 2016 International Business 11 February 2016

CORE BUSINESS State Programs Financing DBRB is the leading financial institution for state programs financing with around 50% stake of total volume. From 2016 DBRB will act as a single coordinator for all state programs to be financed in Belarus Loan portfolio dynamic (USD bn) / Breakdown / FX Structure3 4.2 25.9 4.2 14.32 13.2 79.5 3.1 0.7 1.0 17.21 0.3 1.0 1.1 0.9 1.3 1.0 0.7 0.6 7.2 24.10 0.3 11.4 01.01.2012 01.01.2013 01.01.2014 01.01.2015 01.10.2015* 01.01.2016 Agriculture Industry BYR USD EUR RUB Construction & Real Estate Trade Transferred Loans Transport & Communications Other Export finance Development Bank's Loans * ruble portfolio decreased significantly by reason of devaluation 10% NPLs totaled 5.8% of DBRB loan portfolio as of 01.01.16 (transferred 7.6% 7.6% 7.7% loans NPLs – 15.9%/ own loans NPLs – 0.09%). Average level of NPLs 8% 6.5% 6.0% 5.8% in Belarusian banking industry – 2.5% (as of 01.12.15). 5% 5.9% 12 3% 0.5% 0.9% February 2016 0% 2011 H1 2012 2012 H1 2013 2013 H1 2014 2014 H1 2015 2015© 2016 International Business

PROJECTS MAP Completed projects Stadium construction in Borisov Reconstruction of the biathlon stadium “Raubichi” Delivery of 2 Embraer 195LR jets for BelaviaThe only football stadium in Belarus authorized by Junior Biathlon World Championship and “The Race The first new aircraft wholly owned by the UEFA to held Champions League group stage of Legends“ were held national airline “Belavia“ The purchase of mechanized Tunnel boring Construction and reconstruction of 57 dairy Dairy plant construction in Turov machine farms A unique Belarusian plant producing cheese of 13 Will accelerate the construction of the third Increase in gross milk production up to 10 mln. European varieties underground line in Minsk by 2.5 times ton and double increase in exports© 2016 International Business February 2016

PROJECTS MAP Current projects USD 285 mln USD 2 bn USD 200 mln Second Minsk ring road construction Construction of the third underground line in Minsk Support of export of Belarusian equipmentTotal road length >160 km Line length: 17.2 km/ 14 stations Export to Mongolia, Cuba, Zimbabwe, SingaporeMission: environmental improvement in Minsk Mission: environmental improvement and Mission: entering new markets, export development of public transport in Minsk diversification Projects in pipeline USD 150 mln EUR 28 mln EUR 94 mln EUR 40 mln USD 400 mln 14 Delivery of 3 Boeing NG737 Biogas plant construction in Tractor Stadium construction in Solar park construction Development of Sitnitsky field jets for Belavia Minsk Minsk© 2016 International Business February 2016

CORE BUSINESS SME Support DBRB provides funding for 12 local partner banks to support projects and business ideas of their SME clients Funds & Liquidity Loans & Lease for SME Economic sectors breakdown since August 2014 50.1% 1.2% 0.8% Agriculture 442 invest projects 6.5% Forestry 18.9% Construction Total cost of projects Transport exceed USD 125 mln 22.5% Services Industry Joint program with the World Bank expected in 2016 15© 2016 International Business February 2016

CORE BUSINESS SME Support (cont’d) DBRB creates unique atmosphere in Belarus for growing new business ideas and talents in SME area «Start up» V International Entrepreneurship Forum «My Business» TV-Show (Nov 16-2015, Minsk )From 2015 DBRB considers Above 700 participants from «Start up» companies as Around 500 participants from SME business, different regions of Belarus World Bank, Belarus Top Officials presented own business ideas. important part of SME Hosted and sponsored by DBRB support system DBRB - official Arranger and Sponsor© 2016 International Business 16 February 2016

CORE BUSINESS To become partner #1 among Activities on the Belarusian banks for foreign International Capital Market ECAsHigh Ratings by ECAs (= Sovereign Rating) institutions Partner Banks Established Risk Limits Financing of large And more … No Guaranty Required investment projects Established Credit Lines© 2016 International Business 17 February 2016

CORE BUSINESS Export Finance Solutions Export finance geographic composition Selected export brands DBRB jointly with Promagroleasing (73% owned by DBRD, 2013 2014 2015 #1 international leasing operator in Belarus) provide USD 11.7 mln USD 104.0 mln around 90% of total Belarus export finance support USD 259.4 mln 18© 2016 International Business February 2016

SOCIAL RESPONSIBILITY The world’s biggest gobelin in DBRB HQ (May, 2014) DBRB – BSU SCA Signing Ceremony (June 6, 2014)«School Bus» as viewed by children (Katya, 7 years) «School bus» program – over 300 Our Head Office building provides DBRB – Belarusian State University Strategicspecial buses for safe study trips and opportunities to show the biggest art Cooperation Agreement, training and first traveling and culture objects working place for talented students Being the leader in financial business DBRB pays special attention to social projects Special program «Young tennis stars» Soccer tournament Exhibition of paintings from the 19 Vera Lapko , junior Australian Open 2016 «Development Cup» Tretyakov Gallery for boys up to 17 ys old General Partner Champion February 2016© 2016 International Business

Annexes February 2016© 2016 International Business

CG STRUCTURE (MANAGEMENT BOARD)Chairman Deputies Heads of business divisions Sergei Roumas ChairmanTatsiana Sasnouskaya Natallia Yasinskaya Dzmitry Lipski Alyaksei Zhyrankou First Deputy Deputy Chairperson Head of Finance & Head of Active Chairperson Economics Banking Operations Vasili Shved Ivan Varenitsa Mariya Arlouskaya Siarhei Staliarchuk Pavel DzikDeputy Chairman Deputy Chairman Chief Accountant Head of International Head of Legal Department Business 21© 2016 International Business February 2016

ASSETS TRANSFER HISTORY 2011 2012 2013 2014 USD 0.3 bn USD 0.6 bn USD 0.5 bn USD 0.1 bn During 2011-2014 DBRB has entered in the books USD 1.5 bn of assets from 2 biggest state commercial banks© 2016 International Business 22 February 2016

FIGURES (IFRS) 1H 2014* 2013* 2012 2011 6 2015* 5 4Total Assets 2 803,6 3 156,7** 3 333,7 2 814,9 1 855,3 3 2USD mln 1 0Due from banks 139,2 173,2 167,0 316,7 2,1 %%01.01.14Loans to customers 1 598,8 1 894,5 1 780,7 1 013,2 193,5 01.07.14 01.01.15 01.07.15Securities available for 932,1 993,3 1 292,0 1 441,5 1 642,6sale 133,5 95,7 94,0 43,5 17,1 ROA▲ I CAR ▼ (DBRB vs Banking System)Property and other 2 803,6 3 156,7 3 333,7 2 814,9 1 855,3assetsTotal liabilities andequity USD mDue to banks 265,9 288,5 133,1 0,0 0,0Customers’ deposits 408,2 407,3 317,5 71,0 254,1 40 34.8 37.2 Development Bank 404,2 402,5 298,8 71,0 254,1 35 19.2 Banking systemincl. Government’s 30deposits 25 20 15.3Debt securities issued 1 210,8 1 445,0 1 793,2 2 170,7 1 642,7 15 10Other liabilities 64,3 25,4 30,4 9,4 2,1 5Equity 854,4 990,5 1 059,4 563,7 -43,6 0incl. Share capital 810,8 938,3 938,8 356,9 3,5 01.10.2014 01.10.2015* Consolidated statement incl. Promagroleasing 23** Decreased by reason of the devaluation February 2016© 2016 International Business

CREDIT RATINGS Long-term issuer : 'B-‘ DBRB Credit Ratings  Long-term IDR: 'B-‘ Short-term issuer : 'B‘ Fully Correspond to  Short-term IDR: 'B‘ Outlook Stable Belarus Sovereign  Outlook Stable Assigned on September 4th 2013  Assigned on February 5th 2014 Affirmed on July 30th 2015 Ratings  Affirmed on August 5th 2015 Selected DBRB Key Strengths viewed by RAs The bank enjoys Critical public policy Close association Sizable capitalspecial legal status role with authorities buffers© 2016 International Business 24 February 2016

GOVERNMENT ADVISING Selling a pool of toxic assets Toxic assets (2007-2015) (USD 249.9 mln) Ministry of Finance Management mandate Woodworking enterprises Management *Repayment • Strengthening of corporate governance system • Development strategy adjusting The core objective of BRRB • Marketing policy adjusting management is to improve • Analysis and optimization of technologies applied efficiency of woodworking • Operating capital management enterprises with a view to • Independent examination return of assets to the Ministry • Attraction of direct investors of Finance of the Republic of Belarus spent to purchase the 25 toxic assets pool. February 2016© 2015 International Business