Presentation of Joint-Stock Commercial Bank “Microcreditbank” May 2019 UZBEKISTAN Location - Central Asia. Territory - 447,700 km 2 Population - 32.9 million Economically active population - 14.4 million people (2017) GDP (2018) - 49,4 billion USD 2017 2018 (+,-) Small business entities in 2018: GDP 63,6 59,4 -4,2 Reached 48.900 Industry 41,2 34,7 -6,5 Newly established 28.2% growth to 2017 Agriculture 98,1 98,1 0,0 Share in the GDP increased up to 27%, while in industry - up to 39.6%. Investment 34,8 34,9 0,1 78.3% of the economically active population works in this sphere. Construction 66,2 66,6 0,4 Sales 88,3 86,3 -2,0 Services 58,4 55,2 -3,2 Freight forwarding 77,7 79,6 1,9 Passenger turnover 94,7 95,2 0,5 Export 22,0 26,5 4,5 Import 53,6 55,8 2,2 Investment - a means to weaken and eliminate International rating agencies Fitch and Standard & negative forces, pulling the economy down, and at Poor's have assigned Uzbekistan a stable outlook As of February 2019 Uzbekistan sold the same time a lever pushing the economy with a "BB-" rating. Fitch predicts that the country's $1 billion of Eurobonds in its first foray into forward. It is the banks with their assets that are the economy will increase by 4.9% in 2019 and 5.3% in international debt markets. 2020. main holders of the country's financial resources that determine economic growth. Dynamics of macroeconomic indicators of the Republic of Uzbekistan for 2016-2018 Billion USD 2016 2017 2018 2016 2017 2018 48,90 58,5% 29,89 23,91 23,9% 12,88 18,1% 16,3% 8,21 5,77 9,6% 4,65 8,0% 7,1% 1,47 1,93 5,3% 5,1% GDP Fixed capital Investment loans GDP Fixed capital Investment loans investments allocated by investments allocated by commercial banks commercial banks Share of credit investments of commercial banks in Uzbekistan by sectors The steady growth of the population's income, the simplification of the methods and mechanisms of servicing the depositors, as well as the full guarantees of the population's deposits ensures the expansion of the banks' deposit base. In particular, the volume of deposits in commercial banks increased 3.5 times over the last 5 years and by 2016 - by 31.6%, and by the end of the year $ 70 million. Population Deposits, Million USD Other areas 15% Industry 40% 70,0 Individuals 35,6 44,6 58,7 15% 2015 2016 2017 Housing and 2018 communal services 1% Transport and Material and communications Liquidity dynamics of the banking system * technical 12% support 2% Indicator name 01.01.2018 01.01.2019 High Liquid Assets (Billion Cents) 37 775 20 202 agriculture The ratio of highly liquid assets to aggregate assets, 6% 22,7% 9,4% in percent Sales and Construction general service industry Current liquidity ratio (min. Demand 30%) 56,1% 81,5% 6% 3% Liquidity risk (minimum required 100%) 225,2% 170,7% Net Sustainable Financing Principle (min 100%) 110,6% 107,9% Instant liquidity ratio (min. Demand 10%) 40,1% 30,9% General indicators of Microcreditbank INFRASTRUCTURE 280 Individuals: Legal entities: Staff: 938 000 191 000 2.900 Date of establishment of the bank 05.05.2006 Million USD Total equity Branches 81 2015-2018 274% Small branches 68 102 30 65 Special cashier desks 46 34 1 Exchange Offices 43 2 In the years 3 2015-2018 4 International money transfer desks 45 251% Total assets Million USD 360 FITCH Axbor 143 171 209 RATINGS ВB- reytings Stable UzA stable 1 2 3 4 Microcredtibank’s Assets and loan portfolio Loan portfolio by spheres Million USD Housing services 2% 207,0 Others 24% Logistics and 169,6 sales 3% 152,7 141,9 Trade and Industry 125,3 catering 23% 11% 98,1 Construction Transport and Agriculture 8% communication 16% 13% 01.01.2016 01.01.2017 01.01.2018 Assets Loans Microcreditbank’s assets and liabilities The share of problem assets in total assets Total number of problem assets in 01.01.2019 2.9 mln USD. percent 1,2 % 1,2 % 1,0% 0,7% 0,6% 0,5% 01.12.2018 01.01.2019 01.04.2019 01.07.2019 01.10.2019 01.01.2020 The bank's asset structure will be optimized. In the structure of liabilities the share of interbank deposits will be reduced, international financial institutions and term deposits will be increased. The structure of the liabilities (01.12.2018) The structure of the liabilities (01.01.2020) Certificates of Certificates of deposit deposit 4% 6% Other obligations 33% Funds of Other obligations 40% international Funds of financial international organizations 6% financial organizations 17% Interbank deposits 12% Interbank deposits Term deposits Term deposits 38% 6% 38% Conclusions of international organizations In February 2019 Micrcocreditbank was Fitch Ratings in 15 January 2019 has upgraded affirmed certificate of Quality Management the Long-Term Issuer Default Ratings (IDRs) to System ISO 9001:2015. 'BB-' from 'B+‘ of Joint Stock Commercial Bank This means that clients of owner of the Microcreditbank (MCB). The Outlook is Stable. certificate receive qualitative services. Funds of financial and international institutions CREDIT LINES: GRANTS: International Development Association, UNDP, Sparkassen Foundation for international World Bank, International Fund for Agricultural Cooperation Development, Islamic Corporation for development private sector. Development strategy of Microcreditbank in 2019-2020 Further digitalization of banking business – Improving skills of bank employees and transformation of the bank implementing modern retraining programs Activating partnerships with international Loan portfolio diversification financial institutions and foreign banks Improving credit policy and introducing Equity capital increasing innovative banking services Compliance with financial stability ROE and ROA increasing indicators Improving risk management on basis of international practice Diversification of Microcreditbank's financial assets in 2019-2020 1.Overdraft 4,4% 5. Mortgage 2,7% 2. Any Microloans 8% 6. Revolving 13% 3. Consumer 13,8% 7. Negotiable facilities 4,4% 4. Car loans 1,9% 8. Other loans 51,8% Expectancies from cooperation with German banks Opening correspondent accounts and conducting customer transactions, implementing documentary letter of credits; Opening uncovered credit lines of trade financing; Attraction credit lines for financing small businesses projects on purchasing equipments and materials from Europe. Developing and Implementing project financing projects Implementing qualification exchange programs The Free Economic Zones in Uzbekistan (For attracting investment and capital) General Information of FEZ Zomin-Pharm • Navoi FEZ • "Nukus-farm" FEZ • Balik FEZ Year of creation – 2017 Ongoing project of Zomin- Total area - 100 hectares Pharm LLC – 3,6 ha • Angren FEZ • “Zomin-farm” FEZ • “Sirdaryo” FEZ Out of them, planned Sown areas for the plantation of • Zhizzakh FEZ • “Kosonsoy-farm” FEZ • "Sport" FEZ prospective projects – 60 medicinal plants – 101,5 ha • Urgut FEZ • Boysun-farm FEZ hectares • “Gijduvan” FEZ Free area- 40 hectares • Kokand FEZ • “Bustonlik” FEZ • Hazarasp FEZ • Charvak FEZ Project of the establishment of the joint Uzbek-Indian Joint Medical Center "Mashhura" Name of the organization "Termez Mechanization" LLC Project address: Surhondaryo Region, Termez City, Beruniy Street Establishment of a multidisciplinary medical and rehabilitation center providing high-quality medical care to the population with Project Purpose: the use of modern innovative technologies in cooperation with the Indian company W Pratiksha Hospital and development of medical tourism Total value, of which: 16,0 mln.USD(136 000,0 млн.сўм) - own funds: 6,0 mln.USD(51,0 млн.сўм) - Bank loan: 6,0 mln.USD(51,0 млн.сўм) - Foreign Investment: 4,0 mln.USD(34,0 млн.сўм) Project partner: Hospital of "W Practicai Hospital" in India Annual service revenues: 6,0 mln.USD Jobs creation: 250 persons Date of Subscription: IV quarter of 2020 • Project amount $ 11,500,000 Loan part $ 7,500,000 • The project proposes the acquisition of equipment for the production of concrete products from Germany and China. • The initiator of the project concluded import contracts with MAX- Project of GOLD BIZNES PRO trader GMBH (Germany) companies in the amount of EUR 2,116,952 LLC in Surkhandarya region and Hengmai Trade Hongkong Co Limited (China) in the amount of USD 4,645,000 • According to the concluded import contract with “MAX-trader GMBH”, payment is made according to the following scheme: • 50% of the contract amount (US $ 1,025,196) in advance payment; • 47.5% of the contract amount ($ 973,937) after reporting equipment readiness; • 2.5% of the contract amount ($ 51,260) after commissioning of the equipment. Textile production ZIF TEXTILE LLC in Termez city Project "ZIF TEXTILE" LLC Project objective Production of finished weaving products Servicing bank JSCB “Microkreditbank” Overall value 16.6 million USD 4 million U.S. dollar construction, Own funds 2.6 million U.S. dollars for other expenses Bank loan 10 million USD (purchase of technological equipment) Start-up time December 2019 Annual power 6.75 million units, 29.4 mln.US Production Domestic Market 70% 20.6 million USD External Market 30% 8.8 mln. USD Total area of the enterprise 3 540 sq.m Level of localization 100% New job location 670 pcs Benefits of the Project Duration of the project itself 5 years Comfortable logistics Production of stable high quality products Establishment of product to export of raw materials through introduction of modern technologies "Furniture Making Cluster" project in Termez, Surkhandarya Region DSP production plant 2017 DSP lamination plant 2018 The project will be 2017-2018part of DSP production, grinding and laminating Project worth $ 5.2 million dollars Bank loan is $ 1.8 million.