The Way into New Markets

Key Partner of Czech Exportersand Their Customers Abroad

June 26, 2013

Czech Government´s Export Promotion Scheme

Ministry for Industry and Trade

• defends trade interests of the Czech Republic within the EU, WTO, OECD

• contributes to abolishing trade barriers

• supports Czech official participation in international trade fairs, etc.

EGAP • state-owned insurance company

covering export credit risks

Czech Export Bank • state-owned bank financing officially

supported export credits

CzechTrade

• export assistance and advice • individual counselling • export education

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Czech Export Bank In A Nutshell

CZECH EXPORT BANK plc (CEB) is a specialized banking institution, one of main vehicles in the

Czech government‘s export promotion scheme

100% government-owned, a not-for-profit joint-stock company

Operating in line with the rules of OECD Arrangement on Officially Supported Export Credits

Utilizing standard insurance cover of EGAP, another Czech Export Credit Agency

Integral part of the Czech Republic‘s banking system, fully subject to standard banking regulations

Supplementing local commercial banks‘ services

Rating mirrors that of the Czech Republic: Moody’s A1

S&P AA-

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CEB – Shareholders´ Structure

Registered capital of CEB: USD 200 million (approx. EUR 160 mill.)

Ministry of Industry and Trade

24%

Ministry of Finance41%

EGAP20%

Ministry of Foreign Affairs

10%

Ministry of Agriculture

5%

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CEB´s Results In 2012

54 business transactions completed;

Volume of signed contracts – USD 1.3 billion (EUR 1 billion), i.e. one of the best results in recent years;

Largest contract signed in 2012 – metallurgical works in the Russian Federation with a total investment cost of about USD 413 million;

USD 725 million (EUR 580 million) of loans disbursed;

Total assets of USD 4.2 billion (EUR 3.3 billion) as of December 31, 2012;

Outstanding results in the strategic segment of SMEs: total volume of USD 150 million (EUR 120 million)

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CEB´s Main Product Portfolio

Borrower Product

CZECH EXPORTER Financing of production for export Financing of market research Supplier's credit Guarantees Purchase of export receivables

CZECH INVESTOR Financing of investments abroad

FOREIGN IMPORTER Buyer's credit

EXPORTER´S BANK Refinancing of supplier's or buyer's credit

IMPORTER´S BANK Refinancing of buyer's credit

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CEB’s Product Portfolio by Types of Product(as of 31 December 2012)

re-financing credits0,1%

buyer´s export credits for banks0,6%

buyer´s export cred-its for clients

74,7%

supplier´s export credits

0,7%

credits for in-vestment abroad

21,5%

pre-export credits1,2%

purchase of export receivables1,2%

Total value USD 3.4 billion (EUR 2.7 billion)

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CEB’s Product Portfolio by Countries(as of 31 December 2012)

Russian Federation44%

Slovakia16%

Turkey15%

Georgia8%

Azerbaijan7%

Ukraine3%

another 29 countries with a share of less than 3%

7%

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CEB’s Product Portfolio vs.Czech Exports by Risk Classification

Czech exports

(%)

CEB´s credit

portfolio (%)

  Category 0 84,7% 17,14%

  Category 1 0,4% 0,33%

  Category 2 1,6% 0,0%

  Category 3 5,9% 43,81%

  Category 4 2,8% 16,11%

  Category 5 0,8% 8,03%

  Category 6 0,3% 9,67%

  Category 7 2% 4,89%and non-classifiedSources: OECD, Ministry of Finance, CEB – 2012

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CEB’s Product Portfolio by Sectors(as of 31 December 2012)

machinery and equipment for produc-

tion of energy48,7%

machinery and equip-ment for various indus-

trial sectors37,3%

metal processing machines

1,2%

transportation means3,1%

other industrial products0,3%

other goods3,8%

services0,2%

buildings and transporta-tion constructions

5,2%

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CEB’s Product Portfolio by Currencies

USD EUR CZK0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

19.4%

75.5%

1.8%

17.9%

80.4%

1.8%

Trends in CEB´s currency portfolio

2011

2012

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Key Features of CEB´s Strategy

Tailor-made services and products

Diversification of territories

Quality and guaranteed repayment as main criteria for a „financeable“ project

Maintain CEB´s position in traditional markets and at the same time enter new markets

Support traditional and new business activities of current clients

Active approach towards new clients from all target segments, active acquisition

Increase quality and internal efficiency

Support cooperation with commercial banks

Increase image and information about CEB in target markets

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Cooperation between CEB and EDC

- Joined financing of export from the Czech Republic- Czech producers with Canadian ownership

- Joined financing of projects involving Czech and Canadian exporters in third countries

- Providing assistance to Czech business in Canada and to Canadian business in the Czech Republic

- Cooperation on value chains for various industries

- Seminars organized by EDC and CEB on their support to Czech and Canadian export

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Czech Export Bank plc

Jiri Klumpar, CEO

Prague 1, Vodickova 34Czech Republic

www.ceb.cz

Thank you for your kind attention