IMB GROUP

IMB GROUP

IMB GROUP

Ukraine’s Leading Consumer Lending Pure-play

• IMB Group was formed in May 2006 as a consumer finance holding, incorporated in Cyprus, holding 100% stakes in:

– International Mortgage Bank (IMB), a Ukrainian mortgage lending bank, established in January 2005, and

– Favorit Kapital (Family Credit brand), a Sales Finance credit intermediary, selling point-of-sale loans for the Balance Sheet of IMB, established in October 2005.

• IMB Group is the leading pure-play consumer lending platform in Ukraine, offering its customers Home Acquisition, Home Equity, and Sales Finance loans, bank accounts, deposit services, and Credit Cards (from 2007).

IMB GROUP

Market• The Ukrainian consumer lending market is

experiencing explosive growth• Ukraine follows the growth trends of the

Central European consumer finance markets, but is developing much faster due to:

– utilization of CEE experience

– strong macroeconomic fundamentals

– rapid growth in personal incomes

– accelerated entry of foreign players

• A catching-up to the Central European current per capita level is expected within 4-5 years, implying a 10-fold market growth potential within this period.

• Key growth segments include– Mortgages

– Sales Finance

– Credit Cards

– Car Loans

– Secured and Unsecured Cash Loans

• IMB Group was created to take advantage of the growth opportunity in the highest growth segments of the Ukrainian banking market: Mortgages, Secured Cash Loans, Sales Finance, and Credit Cards.

Ukrainian Consumer Lending Stock (USD mn, 1st of January)

186 272645

1,758

2,891

6,566

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2001 2002 2003 2004 2005 2006

Ukrainian Consumer Lending Stock in 2006 (USD mn)

6,566 6,6887,038

7,6388,225

8,9309,633

-

2,000

4,000

6,000

8,000

10,000

12,000

1/1/2006 1/2/2006 1/3/2006 1/4/2006 1/5/2006 1/6/2006 1/7/2006

IMB GROUP

History2004 - February: Horizon Capital starts an “International Mortgage Program” in cooperation with ProCredit Bank

2005 - January: International Mortgage Bank receives a banking license from The Bank of Ukraine. 100% of the shares are owned by Horizon Capital.

2005 - March: IMB signs an agreement with Overseas Private Investment Corporation (USA) for $30 m long-term debt financing

2005 – May: IMB acquires from ProCredit Bank the International Mortgage Program portfolio

2005 - October: Horizon Capital (USA) and Amber Capital (Poland) set up Favorit Kapital – a credit intermediary for Sales Finance

2005 – November: Favorit Kapital starts distributing IMB’s Sales Finance loans under the brand “Family Credit”

2006 - April: IMB Group - a holding company in Cyprus - is formed jointly by the shareholders of IMB and Favorit Kapital.

2006 – May: Gregory Krasnov is appointed Chief Executive Officer of the IMB Group Holding. A new business plan and strategy are created.

2006 - June: IMB signs an agreement with Financierings-Maatschappij voor Ontwikkelingslanden

(Netherlands) for $10 m long-term debt financing

2006 – June: IMB Group issues 46% of new shares to new western shareholders and raises $31.5 mn of additional equity

2006 – June: Joel Epstein retires from the position of General Director of the Global Consumer Lending Business of AIG Group and becomes Chairman of the Board of IMB Group.

2006 – September: IMB Group shares start trading on the Frankfurt Stock Exchange through depositary receipts

IMB GROUP

Shareholders

Portfolio Investors

IMB Group Public Ltd

(Cyprus)

IMB Group Public Ltd

(Cyprus)

54% 46%

100% 100%

IMB Group’s controlling shareholder is Emerging Europe Growth Fund, LP, managed by Horizon Capital, a leading private equity fund manager in Ukraine and Moldova with USD 200 million under management.

A Polish investments company, which represents the interests of members of the management team and members of the Board of Directors of the Group.

Portfolio Investors

About 15 well-known international investment funds including Goldman Sachs and Farallon Capital.

IMB GROUP

Management

G. KrasnovChief Executive OfficerWork experience – 10 years in Private Equity at Bank of America

(Chicago, Warsaw, London, Scandinavia) and Innova Capital (Warsaw)

Education – Cambridge University, Arizona State University (summa cum laude)

Citizenship – USA (naturalized, Ukrainian national)Lanugages –English, Russian, Polish, German, Ukrainian.

Y.BlashchukCEO – International Mortgage BankHead of Corporate Relations - GroupWork experience – VA Bank, National Bank of UkraineCitizenship – UkraineLanguages – English, Russian, Ukrainian.

A.VrublevskyChief Financial OfficerWork experience – Deloitte & ToucheCitizenship – UkraineLanguages – English, Russian, Ukrainian.

Middle-management is comprised of an international group of professionals, including a significant Central European contingent

IMB GROUP

Country-Wide Network

Regions with operating outlets

Outlets to be launched in Q3 2006

KhmelnytskiyLviv

Ivano-FrankivskUzhgorod

Ternopil

RivneLutsk

ZhytomyrKyiv

Vinnytsia

Chernihiv

Sumy

Poltava

Cherkasy

Kirovohrad

MykolayivOdesa

Kherson

Simferopol

Zaporizhya

Kharkiv

Luhansk

DonetskChernivtsi

Kremenchuk

Mariupol

Dnipropetrovsk

IMB Head office

Outlets of Family Credit

IMB GROUP

Sales FinanceBusiness Line

Favorit Credit Action

-

500

1 000

1 500

2 000

2 500

3 000

January-06 February-06 March-06 April-06 May-06 June-06 July-06

US

D t

hs

-

1 000

2 000

3 000

4 000

5 000

6 000

Volume of Loans Granted Number of loans granted

• Favorit Kapital was formed in November 2005 as a credit intermediary, and is operating under the “Family Credit” brand.

• To date, Family Credit has achieved the following:

– granted over 31,000 loans for more than $13 m

– established a nation-wide network of 300 POS

– is currently disbursing ca. 300 new loans per day

– is currently adding 2-3 new POS per day

• Management estimates Family Credit’s Q4 2006 market share of the Ukrainian Sales Finance market at over 5% (on a run-rate disbursements basis). This puts Family Credit in the Top 10 rank in Sales Finance in Ukraine.

IMB GROUP

Mortgage Business Line

IMB Mortgage Sales

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06

US

D t

hs

0

10

20

30

40

50

60

70

80

90

Volume of Loans Granted Number of loans granted

• IMB is leveraging Central European experience to focus its sales efforts in the proactive management of the Broker/Realtor channel. This method of distribution:– Reduces customer acquisition costs

– Eliminates the need for significant investment in the branch rollout

– Creates an atttractive proposition for the client from:• specialization of sales personnel, and • attractive rates, which are a refection of the lower cost

structure then that of most of IMB’s branch-based competitors

• Since the launch of operations in January 2005 IMB granted over 650 Home Acquisition and Home Equity (Secured Cash) loans for the total amount exceeding $24 mn.

• All of the mortgages are issued in USD and are collateralized by real estate.

• IMB’s mortgage portfolio growth has accelerated in 2006, as monthly mortgage issuance grew by 77% to reach an all-time record USD 3.5 million in July. August disbursements of $4.5 mn are expected.

• IMB’s end-July mortgage portfolio comprised 10 to 15 year Home Acquisition loans (57% of the total) and 5 to 10 year Home Equity loans (26%) issued mainly to middle-to-high income borrowers in Kiev.

• Home Equity loans issued by IMB are typically primary mortgages secured against secondary market apartments.

Distribution of IMB loans by Type & Term

13%

34%

3%

33%

17%

10-Year HA

15-Year HA

Bridge Loans

5-Year Home Equity

10-Year Home Equity

Other

Youth Loans

IMB GROUP

Growth Drivers• Mortgage

– Geographic expansion outside of Kiev (in progress)

– Product range extension (suburban SFR)

– Broker / realtor channel as the primary distribution focus

– Corporate channel / affinity programs as the secondary distribution focus

– Pro-active customer group targeting for Home Equity loans

• Sales Finance– Retail chains

– Agent solution

• Credit Cards (from Q1 2007)– Cross-sell to Sales Finance clients

– Cross-sell to Mortgage clients

– Co-branded with retail chains

– Corporate channel / affinity programs

IMB GROUP

Loans Portfolio

Portfolio (USD) January February March April May June July

Mortgage 9,414,959 10,391,782 11,996,483 13,912,890 15,380,902 19,316,971 21,516,382

Mortgage as % of Portfolio 87% 84% 78% 75% 71% 72% 69%

Sales Finance Loans 1,457,329 2,026,303 3,408,711 4,695,146 6,200,865 7,351,050 9,475,031

Total 10,872,288 12,418,085 15,405,194 18,608,036 21,581,767 26,668,021 30,991,413

Portfolio of IMB Group

0

5

10

15

20

25

30

35

January-06 February-06 March-06 April-06 May-06 June-06 July-06

US

D m

n

Volume of Mortgage Loans Outstanding Volume of Consumer loans outstanding

With average month-on-month Portfolio growth rate of 23% in 1H 2006, IMB is Ukraine’s fastest growing bank.

With average month-on-month Portfolio growth rate of 23% in 1H 2006, IMB is Ukraine’s fastest growing bank.

IMB GROUP

Future Plans• IMBG has recently completed a $31 mln private placement, in

conjunction with which its GDRs were listed on Frankfurt Stock Exchange.

• IMBG expects to reach loans portfolio of – $75-85 mln at YE 2006 and – $250-300 mln at YE 2007

• IMBG is currently considering various debt financing options, including public and privately placed bonds (Ukrainian and international), warehousing facilities, and securitization.

• Subject to the achievement of management projections on portfolio growth, regulatory capital adequacy requirements are likely to drive IMBG to effect an equity increase in mid-2007.

• IMBG would be likely to finance such equity increase through an international Initial Public Offering.

IMB GROUP

Contact

Gregory KrasnovChief Executive Officer

IMB Group (Public) Ltdc/o International Mortgage Bank

Forum Business City, Building 4АPymonenka str. 13Kyiv 04050, Ukraine

Tel: +380 44 492 9092Fax: +380 44 492 9099Mob: +380 50 448 1825

E-mail: gkrasnov@imb.com.ua