Financials, 27 May 2021 Patria Group Hold

Maintained Price: RON 0.093 Price target: RON 0.104 (from RON 0.085) Fair value in Romania

We maintain our HOLD recommendation on , and increase our price target (PT) to RON 0.104/share, offering upside of c.12.7%. We Expected events have updated our estimates for 2021E to reflect management’s budget, and rolled our model over by one year, so it includes our 2023E 2Q21 results 17 August estimates. We continue to appreciate the bank’s profitability growth 3Q21 results 15 November potential, coupled with an improved capital base. However, while some Conference call 23 November fundamentals have improved, its asset quality has declined somewhat, due mostly to the COVID-19 pandemic; and, at 0.9x and 0.8x P/BVs for Key data 2021E and 2022E, respectively, on our estimates, we continue to view the stock as fairly valued. Market cap USD 72m Free float 17% Profitability potential remains, ROE likely to grow. We believe the bank’s 3M ADTV USD 2,995 potential to grow its profitability remains solid, with our forecast ROE rising to Shares outstanding 3,115m 8.2% in 2023E, and as much as 10.9% in the long term, from the c.1% reported Major shareholder EEAF (83.2%) in 2020. Our better ROE for 2022E than previously is the result of the alignment Bloomberg code PBK RO Equity BET index 11,636.4 of our estimates with the bank’s budget and the strong loan book growth of 12.6% reported in 2020. At the same time, we believe the market is pricing in the potential already and, in view of the expected ROE, compared with the Price performance COE of 11.5%, no dividend payments in the medium term, in our view, and the 52-w range 0.08-0.10 P/BVs close being to their historical median, we believe Patria Bank is fairly 52-w performance 11.8% valued currently. Relative performance -22.1% Capital position improves, but due mostly to EBA’s facilities, introduced in 2020. While Patria’s capital position had been improving prior to the COVID- Patria Bank 12M share price 19 pandemic, most of the increase in its Tier I and CAR ratios in 2020, to 16.4% performance

and 21.1%, respectively, resulted from the EBA’s changes in the RWA 0.12 regulations, such as: i) a zero capital requirement for EUR-denominated PBK RO Equity 0.11 treasury bills; ii) a change in the SME supporting factor; and iii) changes in BET Index (rebased) 0.10 the threshold for including companies in the SME category. While the capital ratios are likely to be supported by improving profitability going forward, there 0.09 is likely to be downward pressure as well, mostly from the strong loan book 0.08 growth that we expect in the next three years and, from 2023E-onwards, from 0.07

a gradual increase of the sovereign exposures’ risk weight. 0.06

Jul-20

Oct-20 Apr-21

Jun-20 Jan-21 Mar-21

Asset quality worsened somewhat during the pandemic. Stage 2 loans Feb-21

Aug-20 Sep-20 Nov-20 Dec-20

May-20 May-21 remained more or less flat in 1H20 but, in the rest of the year, the Stage 2 loan ratio increased to 20%, from 14%. At the same time, the Stage 3 loans increased by 1ppt, to 4%, at end-2020. The option to apply for local moratoria was extended, according to our understanding, until the end of March 2021. In terms of COR, we expect Patria to report 1.6% in 2021E, while its provisioning could fall to c.1.4%. in 2022-23E. We have brought our estimate into line with management’s budget for 2021E and its plans until 2023E. We see Patria’s shares as fairly valued currently, with potential upside of c.13%. On our numbers, the shares trade currently at 0.9-0.7x P/BVs for 2021- 23E, at a discount vs. its peers based in Romania. In our view, the discount is justified, mostly on the lower ROEs, no dividends currently, and despite the growth potential of the bottom line, which we believe is more or less reflected in the current share price. On P/E, the bank trades at 30.6x for 2021E, 14.2x for 2022E and 9.4x for 2023E, on our estimates. We maintain our HOLD on Patria Bank, with a new PT of RON 0.104/share, offering upside of c.12.7%. Risks: the recent lawsuit filed against Patria; NIMs and their growth forecasts; asset quality; demographics; and a low share turnover.

Year NII Net Profit EPS PE BVPS P/BV ROE DPS Dividend (RON m) (RON m) (RON) (x) (RON) (x) (%) (RON) yield 2019 129.9 3.4 0.00 n.m. 0.10 0.9 1.1% 0.00 0.0% 2020 120.7 2.9 0.00 >100 0.11 1.0 0.9% 0.00 0.0% 2021E 129.9 9.4 0.00 30.6 0.11 0.9 2.8% 0.00 0.0% EQUITY 2022E 137.1 20.3 0.01 14.2 0.12 0.8 5.8% 0.00 0.0% RESEARCH 2023E 148.6 30.6 0.01 9.4 0.13 0.7 8.2% 0.00 0.0% Analysts: David Lojkasek; Alex Boulougouris, CFA Prague: +420 222 096 256 E-mail: [email protected], [email protected] Website: www.wood.com

Contents

Company snapshot – HOLD, PT RON 0.104/share ...... 3

Changes in our estimates ...... 4

Valuation ...... 5

Risks ...... 9

Financials ...... 10

Important disclosures ...... 12

Closing Prices as of 25 May 2021

© 2021 by WOOD & Company , a.s.

All rights reserved. No part of this report may be reproduced or transmitted in any form or by any means electronic or mechanical without written permission from WOOD & Company Financial Services, a.s. This report may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover other than that in which it is published without written permission from WOOD & Company Financial Services, a.s.

Requests for permission to make copies of any part of this report should be mailed to:

WOOD & Company Financial Services a.s. Palladium, Namesti Republiky 1079/1a, 110 00 Prague 1 – Czech Republic tel.: +420 222 096 111 fax: +420 222 096 222 http//:www.wood.cz

Patria Bank 2 WOOD & Company

Company snapshot – HOLD, PT RON 0.104/share

Patria Bank HOLD COMPANY DESCRIPTION Bloomberg ticker PBK RO 0.12 Closing price (RON) 0.093 0.11 Patria Bank is a micro-cap bank based in Romania, w here it issues loans in small urban, Price target (RON) 0.104 0.10 semi-rural and rural areas. It w as established in 1993 as Romexterra Bank, w hich later Upside to PT 12.7% 0.09 changed to Nextebank. In April 2014, Emerging Europa Accession Fund (EEAF), a private Shares outstanding (m) 3,115 0.08 equity fund, took over the majority stake in the bank, and also changed its name and brand MCap (RON m) 288 0.07 to Patria Bank. In the first half of 2016, the bank acquired a majority stake of more than Free float 17% 0.06 60% in Banca Comerciala Carpatica and the tw o merged. The merger w as finalised 3M ADTV (USD ths) 3.0

in May 2017. The bank operates in four segments – Agri, Micro, Retail and SMEs.

Jul-20

Oct-20 Apr-21

Jun-20 Jan-21

Mar-21

Feb-21

Aug-20 Sep-20 Nov-20 Dec-20 May-20 52 Week Range (RON) 0.08-0.10 May-21 PBK RO Equity BET Index (rebased) FINANCIALS (RON m) Growth rates 2018 2019 2020 2021E 2022E 2023E 2018 2019 2020 2021E 2022E 2023E Net interest income 116 130 121 130 137 149 Loans and advances to customers 16.3% 3.7% 12.6% 12.6% 9.5% 7.5% Net F&C income 23 26 24 27 30 32 Deposits -5.4% -10.8% 6.2% 7.1% 5.0% 3.6% Other operating income 27 20 21 21 23 24 Equity 36.3% 4.5% 3.1% 2.9% 6.0% 8.5% Net operating income 166 176 166 178 189 204 Assets -5.4% -7.7% 7.4% 6.5% 4.9% 4.0% Total operating expenses -170 -150 -134 -136 -134 -134 Net income -90.9% n.m. -15.4% 226.4% 115.5% 50.4% Profit before provisions -4 26 32 43 55 70 Net interest income -0.9% 11.6% -7.1% 7.6% 5.6% 8.4% Impairment of financial assets 1 -16 -25 -32 -31 -33 Gross result -3 10 7 11 24 36 RATIOS & VALUATIONS Tax expense -1 -6 -4 -2 -4 -6 2018 2019 2020 2021E 2022E 2023E Net result for the period -4 3 3 9 20 31 Net loans to deposits 52.1% 60.6% 64.2% 67.5% 70.4% 73.1% Deposits to assets 86.3% 83.4% 82.5% 82.9% 82.9% 82.6% Cash and cash equivalents 517 438 355 412 363 383 Net loans to assets 45.0% 50.5% 53.0% 56.0% 58.4% 60.4% Financial assets 720 504 664 543 526 442 Equity to assets 8.6% 9.8% 9.4% 9.1% 9.1% 9.5% Due from banks 6 6 7 8 9 10 Capital adequacy ratio 15.7% 17.4% 21.1% 19.6% 19.1% 18.9% Loans and advances 1,594 1,654 1,862 2,096 2,294 2,467 Tier 1 capital ratio 14.4% 14.9% 16.4% 15.3% 15.2% 15.3% Other assets 520 516 490 544 591 631 Intangible assets 43 46 46 46 46 46 NII to average assets 3.2% 3.8% 3.6% 3.6% 3.5% 3.6% Property, plant and equipment 144 109 90 94 99 104 Costs to average assets -4.7% -4.4% -3.9% -3.7% -3.5% -3.3% Total assets 3,544 3,271 3,514 3,743 3,928 4,084 Cost to income 102.3% 85.1% 80.9% 76.0% 71.0% 65.8% Pre-tax income to average assets -0.1% 0.3% 0.2% 0.3% 0.6% 0.9% Deposits from banks 7 19 37 40 42 44 Effective tax rate 24.7% -64.8% -58.1% 16.0% 16.0% 16.0% Deposits from customers 3,057 2,728 2,898 3,104 3,259 3,375 ROA n.m. 0.1% 0.1% 0.3% 0.5% 0.8% Other liabilities 151 170 214 225 234 240 ROE n.m. 1.1% 0.9% 2.8% 5.8% 8.2% Subordinated debt 23 34 35 35 35 35 ROTE n.m. 1.3% 1.0% 3.3% 6.7% 9.3% Total liabilities 3,238 2,952 3,184 3,404 3,569 3,694 Retained earnings -35 -24 -15 -6 15 45 P/E n.m. n.m. >100 30.6x 14.2x 9.4x Other equity 340 344 345 345 345 345 P/BV 1.2x 0.9x 1.0x 0.9x 0.8x 0.7x Total shareholders’ equity 306 320 330 339 359 390 P/Tangible BV 1.4x 1.0x 1.1x 1.0x 0.9x 0.8x Total liabilities and equity 3,544 3,271 3,514 3,743 3,928 4,084 Dividend yield 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

LOANS AND ADVANCES TO CUSTOMERS CHARTS 2018 2019 2020 2021E 2022E 2023E 10% 4,000 80% Consumer loans 13.1% 9.3% 8.2% 7.3% 6.6% 6.2% Mortgage loans 9.5% 11.5% 12.4% 12.6% 13.3% 13.6% 8% 3,000 60% Loans to entrepreneurs 9.4% 10.8% 11.0% 11.2% 11.3% 11.5% 2,000 40% SME loans 65.2% 66.0% 66.7% 67.6% 67.9% 68.1% 6% State and municipal organizations 2.9% 2.5% 1.8% 1.3% 0.9% 0.7% 1,000 20% 4%

Non-Performing Loan Ratio 19.7% 12.1% 11.4% 11.7% 10.0% 8.8% 0 0% Total NPL Coverage 55.9% 55.3% 60.3% 58.3% 68.0% 79.6% 2% 2018 2019 2020 2021E2022E2023E

0% Loans and advances 2018 2019 2020 2021E 2022E 2023E Deposits from customers ROA ROE ROTE Net loans to deposits DUPONT ANALYSIS 25% 120% 2018 2019 2020 2021E 2022E 2023E Cost to income Net interest income 3.2% 3.8% 3.6% 3.6% 3.6% 3.6% 20% 100% Net fee and commission income 0.6% 0.8% 0.7% 0.8% 0.8% 0.8% Other operating income 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% 15% 80% Net operating income 4.6% 5.2% 4.9% 4.9% 4.9% 5.0% 60% Total operating expenses -4.7% -4.4% -3.9% -3.7% -3.5% -3.3% 10% Profit before provisions -0.1% 0.8% 0.9% 1.2% 1.4% 1.7% 40% Impairment of financial assets 0.0% -0.5% -0.7% -0.9% -0.8% -0.8% 5% Gross result -0.1% 0.3% 0.2% 0.3% 0.6% 0.9% 20% 0% Tax expense 0.0% -0.2% -0.1% 0.0% -0.1% -0.1% 2018 2019 2020 2021E 2022E 2023E 0% Net result for the period -0.1% 0.1% 0.1% 0.3% 0.5% 0.8% Tier 1 capital ratio Capital adequacy ratio 2018 2019 2020 2021E 2022E 2023E

Patria Bank 3 WOOD & Company

Changes in our estimates

We have cut our NIM forecasts, and admit that our previous numbers were a touch too optimistic. On the other hand, following the strong loan book growth of 12.6% in 2020, compared to our expectations of c.7.5%, we have upgraded our loan book forecast, which is now c.20% higher than previously, improving our NII estimates. The better performance on F&C than expected in 2020 has resulted in an upgrade of our forecasts here, as well.

On a more negative note, we feel obliged to become more conservative in our provisioning costs forecasts, increasing our COR estimates by 0.1ppt for 2021E and 2022E, reflecting the bank’s budget for 2021E and its published plan until 2023E.

The combination of our changes has resulted in higher net income than previously, with our 2021E and 2022E ROE estimates being c.0.2-0.4ppts above our previous figures. Our 2023E ROE estimate is now 8.2% and we calculate that the long-term ROE could reach as much as 10.9%. Estimates updated and model rolled over to include 2023E 2021E 2022E 2023E New Old Change New Old Change New Net interest income 129.9 125.2 3.8% 137.1 133.5 2.7% 148.6 Net fee and commission income 27.5 24.3 13.1% 29.6 26.0 13.8% 31.9 Other operating income 21.0 18.2 15.5% 22.6 18.9 19.8% 23.6 Net operating income 178.4 167.7 6.4% 189.4 178.4 6.1% 204.1 Total operating expenses -135.5 -132.9 2.0% -134.4 -134.9 -0.3% -134.4 Profit before provisions and impairments 42.9 34.8 23.4% 54.9 43.5 26.3% 69.7 Impairment of financial assets -31.7 -25.7 23.1% -30.7 -24.0 28.2% -33.3 Profit before tax 11.2 9.0 24.4% 24.2 19.5 23.8% 36.4 Tax expense -1.8 -1.4 24.4% -3.9 -3.1 23.8% -5.8 Net result for the period 9.4 7.6 24.4% 20.3 16.4 23.8% 30.6

Total assets 3,743 3,449 8.5% 3,928 3,550 10.7% 4,084 Loans and advances to customer 2,096 1,776 18.0% 2,294 1,911 20.1% 2,467 Total equity 339 292 16.1% 359 308 16.5% 390 Deposits to customers 3,104 2,922 6.2% 3,259 3,001 8.6% 3,375

NIM 3.6% 3.7% -0.1ppts 3.5% 3.8% -0.3ppts 3.6% COR -1.6% -1.5% -0.1ppts -1.4% -1.3% -0.1ppts -1.4% C/I 76.0% 79.3% -3.3ppts 71.0% 75.6% -4.6ppts 65.8% ROE 2.8% 2.6% 0.2ppts 5.8% 5.5% 0.4ppts 8.2% ROA 0.3% 0.2% 0.0ppts 0.5% 0.5% 0.1ppts 0.8%

Source: WOOD Research

Patria Bank 4 WOOD & Company

Valuation

We set our new price target (PT) for Patria Bank at RON 0.104, implying upside of 12.7% to the 25 May close. We arrive at our PT by using a combination of a peer valuation and our excess return valuation model, weighted equally. Valuation summary Method Weight PT Excess return valuation 50% 0.089 Peer valuation 50% 0.119 Weighted average PT 0.104 Current price 0.093 Potential upside 12.7%

Source: WOOD Research

Excess return model In our excess return valuation model, we have applied a risk free rate of 5%, a market risk premium of 5% and a beta of 1.3x, giving us a cost of equity of 11.50%. Currently, our long-term ROE estimate is 10.9%. Patria Bank: cost of equity assumptions Risk free rate 5.0% Market risk premium 5.0% Market return 10.0% 1Y monthly beta 1.3 Cost of equity 11.5%

Source: WOOD Research

To calculate the fair value of Patria Bank’s shares, we sum the present value of the excess returns per share until 2028E, the PV of the excess returns in the terminal period beyond 2028E, and the current capital invested in the bank. The fair value of each individual share then comes in at RON 0.080, giving us a 12M PT of RON 0.089/share. Excess return valuation model 2020 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E + Net profit (RONm) 3 9 20 31 40 48 54 58 61 63 Growth yoy n/a n/a 115.5% 50.4% 31.5% 19.7% 12.3% 7.7% 4.8% 3.0% Dividend distribution (RONm) 0 0 0 0 0 0 14 30 42 44 Growth yoy n.a. n.a. n.a. n.a. n.a. n.a. 116.0% 39.5% 4.7% Shareholders’ equity (RONm) 330 339 359 390 430 478 518 546 565 584 Growth yoy 2.9% 6.0% 8.5% 10.3% 11.2% 8.4% 5.4% 3.4% 3.3% Cost of equity (RONm) 38 38 40 43 47 52 57 61 64 66 Growth yoy 1.4% 4.5% 7.3% 9.4% 10.8% 9.7% 6.8% 4.4% 3.4% Excess return (RONm) -35 -29 -20 -13 -7 -4 -3 -3 -3 -38 ROE 2.8% 5.8% 8.2% 9.8% 10.6% 10.8% 10.9% 11.0% 10.9% Payout ratio 0.0% 0.0% 0.0% 0.0% 0.0% 29.2% 56.1% 72.7% 72.6%

Time adjustment for the valuation date 0.60 1.60 2.60 3.60 4.60 5.60 6.60 7.60 8.60 Discount factor 0.94 0.84 0.75 0.68 0.61 0.54 0.49 0.44 0.39 Discounted excess return per share -0.009 -0.005 -0.003 -0.002 -0.001 -0.001 0.000 0.000 Current book value per share 0.106

Number of shares (m) 3,115 Fair value per share 0.080 Target price 0.089 Upside -3.4%

Valuation date 25 May 2021 Fiscal year-end 31 Dec 2021 Time adjustment 0.60

Source: WOOD Research

Patria Bank 5 WOOD & Company

Below, we present the sensitivity analysis of our excess return model for Patria Bank. Excess return valuation model sensitivity analysis Long term growth rate 0.094 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 8.5% 0.137 0.143 0.152 0.161 0.171 0.184 0.199

9.5% 0.114 0.119 0.124 0.130 0.136 0.143 0.151

10.5% 0.097 0.100 0.103 0.107 0.111 0.115 0.119

11.5% 0.084 0.085 0.087 0.089 0.092 0.094 0.097 equity Cost Cost of 12.5% 0.072 0.073 0.075 0.076 0.077 0.079 0.080 13.5% 0.063 0.063 0.064 0.065 0.066 0.066 0.067 14.5% 0.055 0.055 0.056 0.056 0.056 0.057 0.057

Source: WOOD Research

Peer valuation We calculate that on P/BV, Patria has been trading at a median discount of c.25% to its Romanian peers over the past three years, and we have decided to apply this discount to our estimates. The median trailing P/BV multiple in the same period was approximately 0.9x.

Trailing P/BV multiple Discount on P/BV to Patria’s Romanian peers

1.3 20%

1.2 10%

1.1 0% 1.0 -10% 0.9 -20% 0.8

0.7 -30%

0.6 -40%

Jul-18 Jul-19 Jul-20 Jul-18 Jul-19 Jul-20

Jan-19 Jan-20 Jan-21 Jan-19 Jan-20 Jan-21

Mar-19 Mar-20 Mar-21 Mar-19 Mar-20 Mar-21

Nov-18 Nov-19 Nov-20 Nov-18 Nov-19 Nov-20

Sep-18 Sep-19 Sep-20 Sep-18 Sep-19 Sep-20

May-18 May-19 May-20 May-18 May-19 May-20

Source: Bloomberg, WOOD Research

On our estimates, the Romanian banks trade currently at P/BV multiples of 1.5x and 1.4x for 2021E and 2022E, respectively. Our implied multiples for Patria are, therefore, 1.1x for 2021E and 1.0x for 2022E on book value. The fundamental value then comes in at RON 372m, or RON 0.119/share. Multiples valuation method RO multiples WOOD Weight PT (inc. discount) Discount -25% 2021E P/BV 1.1 339 50% 370 2022E P/BV 1.0 359 50% 374 Weighted average 372 Number of shares (m) 3,115 PT 0.119 Current price (RON) 0.093 Upside 28.8%

Source: Bloomberg, WOOD Research

On the next page, we compare Patria’s current market multiples with its Romanian peers, as well as the other banks under our coverage. On our estimates, Patria Bank trades at 0.9x and 0.8x P/BVs for 2021E and 2022E, respectively. This implies a c.42% discount to its Romanian peers. In view of the lower ROEs and no dividends, currently, we believe that some discount is justified, despite the growth potential that the bank offers on the bottom line.

Patria Bank 6 WOOD & Company

Current multiples of the banks under our coverage Bank Last price Mcap P/E P/BV ROE Dividend yield LCL USDm 2021E 2022E 2021E 2022E 2021E 2022E 2021E 2022E Romania 2.8 3,940 9.8 9.0 1.5 1.4 15.6% 15.8% 6.7% 7.2% BRD-GSG 15.9 2,757 10.9 10.4 1.5 1.4 11.8% 13.7% 7.4% 7.7% Patria Bank 0.093 72 30.6 14.2 0.9 0.8 2.8% 5.8% 0.0% 0.0% Austria Erste Bank 34.3 18,067 16.2 11.5 1.0 0.9 6.1% 8.3% 2.8% 3.9% Raiffeisen Int. 19.5 7,875 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Addiko Bank 13.6 325 20.7 11.7 0.3 0.3 1.5% 2.7% 17.6% 2.9% Cyprus 1.0 537 10.5 7.4 0.3 0.3 2.6% 3.7% 0.0% 0.0% Hellenic Bank 0.7 372 5.4 4.1 0.3 0.3 5.0% 6.4% 0.0% 0.0% Czech Republic Komercni 770.5 7,057 17.0 13.6 1.3 1.3 7.7% 9.7% 7.9% 5.2% Moneta 78.5 1,933 14.1 10.5 1.3 1.4 10.1% 12.9% 10.7% 7.6% Georgia TBC Bank 1,092.0 3,939 5.7 4.8 0.8 0.7 15.5% 15.7% 0.0% 0.0% Bank of Georgia 1,244.0 4,001 6.9 5.7 1.0 0.9 15.8% 16.5% 0.0% 0.0% Greece Eurobank 0.8 3,566 8.8 5.7 0.5 0.5 5.8% 8.5% 0.0% 0.0% National Bank 2.4 2,634 6.4 4.4 0.4 0.4 6.4% 8.6% 0.0% 0.0% 1.0 1,911 21.9 5.0 0.3 0.2 1.0% 5.0% 0.0% 0.0% Bank Piraeus 1.5 2,306 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Hungary OTP 15,475.0 15,206 17.2 11.7 1.7 1.5 10.1% 13.6% 2.2% 2.7% Kazakhstan Halyk Savings Bank 15.1 4,443 4.8 4.4 1.1 1.0 24.8% 24.2% 12.5% 13.6% Lithuania Siauliu Bankas 0.7 510 9.0 8.3 1.0 1.0 12.3% 12.1% 3.9% 4.2% North Macedonia Komercijalna Banka 8,740.7 396 10.9 10.3 1.4 1.3 12.9% 13.1% 6.9% 6.9% NLB Banka 21,000.0 357 9.5 8.4 1.1 1.1 12.4% 12.9% 0.0% 8.6% Poland PKO BP 38.1 13,018 12.3 10.5 1.1 1.1 9.6% 10.6% 7.7% 9.1% Santander Bank 253.0 7,063 >100 13.1 0.9 0.9 0.2% 6.9% 0.0% 7.6% Pekao 92.0 6,597 17.4 11.9 1.0 0.9 5.6% 7.9% 5.5% 8.0% ING BSK 187.4 6,661 21.5 14.4 1.4 1.3 6.8% 9.5% 1.4% 2.1% mBank 283.6 3,283 n.m. 9.6 0.8 0.7 n.m. 8.0% 0.0% 10.4% Handlowy 43.2 1,540 21.0 12.5 0.8 0.7 3.7% 6.1% 4.8% 8.0% Millennium 4.6 1,531 n.m. 10.6 0.8 0.7 n.m. 7.2% 0.0% 0.0% Alior Bank 31.3 1,115 >80 12.5 0.6 0.6 0.7% 5.1% 0.0% 0.0% Russia Sberbank 307.0 90,159 8.6 7.2 1.3 1.2 16.1% 17.3% 5.8% 7.0% TCS Group 65.2 12,999 20.5 16.7 6.1 4.9 33.4% 32.4% 1.5% 1.8% Slovenia NLB Group 64.8 1,588 12.5 7.8 0.7 0.6 5.3% 8.3% 7.6% 9.0% Turkey Garanti Bank 7.8 3,870 3.2 2.5 0.5 0.4 15.3% 17.0% 7.8% 10.1% Akbank 5.1 3,133 3.9 2.6 0.4 0.3 10.6% 14.2% 6.4% 9.6% Isbank 5.0 2,668 2.4 1.8 0.3 0.3 13.4% 16.0% 8.3% 11.3% Yapi Kredi 2.1 2,115 2.5 1.8 0.3 0.3 13.6% 16.5% 3.9% 5.5%

Patria Bank est. 0.093 72 30.6 14.2 0.9 0.8 2.8% 5.8% 0.0% 0.0% Patria Bank PT 0.104 34.5 16.0 1.0 0.9 2.8% 5.8% 0.0% 0.0% Median [region] 10.5 9.0 0.9 0.9 10.1% 10.6% 3.9% 5.5% Median [Romania] 10.3 9.7 1.5 1.4 13.7% 14.8% 7.0% 7.5% Premium/(discount) to RO banks 196% 46% -42% -42% -10.8pp -9.0pp -7.0pts -7.5pts

Source: Bloomberg (pricing data), WOOD Research

Patria Bank 7 WOOD & Company

ROEs vs. P/BV multiples for 2021E and 2022E

2021E P/BV vs. ROE 1.8

1.6 y = 2.7621x + 0.618 R² = 0.1347 1.4

1.2

1.0 Patria Bank 0.8

0.6

0.4

0.2

0.0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

2022E P/BV vs. ROE 1.8

1.6

1.4 y = 2.6256x + 0.5246 R² = 0.1011 1.2

1.0 Patria Bank 0.8

0.6

0.4

0.2

0.0 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%

Source: Bloomberg, WOOD Research

Patria Bank 8 WOOD & Company

Risks

 A lawsuit has been filed against Patria by SC Iasisting SRL (which has concluded loan agreements for investments and working capital with Patria Bank S.A.), SC Red Hospital SRL, SC Recumedis SRL, SC Red Plaza SRL and Blajut Viorel. In the lawsuits, Patria is being asked to pay EUR 5m and EUR 3m for material and non-material damages, respectively. As this has been announced by the bank only recently, it is difficult for us to judge the final impact on Patria’s financials. Should it be required to pay the full amount of EUR 8m this year, the impact on the bottom line would be large, but still one-off in nature. In such a case, ceteris paribus, the fair value implied by our excess return model would be c.14% below the fair value presented on page 5 of this report. The potential result of the case remains unclear and we choose to highlight this as a risk only, for now, rather than incorporate the full impact into our estimates. We also believe that that the lawsuit is unlikely to be resolved this year.

 NIMs and their growth. While we admit that our previous NIM forecasts were too optimistic and have been cut accordingly in this report, we note that the interest margin risks are still present. Patria Bank remains a niche player, but the banking industry in Romania is crowded and margin pressure could come in the form of increased competition in Patria Bank’s regional markets.

 Asset quality and COVID-19. We appreciate the high loan growth the bank both recorded over 2020 and is likely to do so again in 2021E, but we caution that too-aggressive growth could result in a worsening of Patria’s asset quality, which has already seen some deterioration during the pandemic.

 Capital levels. In our initiation report in May 2020, we highlighted the risks of Patria Bank’s capital levels. Over 2020, however, its capitalisation improved substantially. On the other hand, we note that this improvement was the result of some of the changes in the RWA regulation introduced by the EBA. The improving profitability is likely to support Patria’s capital ratios, but the strong loan growth that we expect for 2021-23E could more than offset this, we believe. At the same time, we understand that the risk weights for EUR-denominated treasury exposures should begin to increase gradually, from 2023E.

 Demographics. Romania’s population peaked in the early-1990s and has been declining at a high rate since then. Should such a trend continue or accelerate, the risks for the economy are vast.

 Low trading turnover. The 3M ADTV of Patria Bank’s shares is less than USD 5,000, which increases the overall risk of the investment.

Patria Bank 9 WOOD & Company

Financials

Income statement (RON m) 2018 2019 2020 2021E 2022E 2023E Interest income 156 173 171 186 198 212 Interest expense -40 -44 -50 -56 -61 -64 Net interest income 116 130 121 130 137 149 Fee and commission income 29 32 29 32 35 37 Fee and commission expense -6 -5 -5 -5 -5 -5 Net fee and commission income 23 26 24 27 30 32 Other operating income 27 20 21 21 23 24 Net operating income 166 176 166 178 189 204 Personnel expenses -78 -68 -63 -65 -66 -67 Depreciation and amortisations expense -19 -23 -24 -25 -25 -25 Other operating and administrative expenses -73 -58 -47 -45 -44 -42 Total operating expenses -170 -150 -134 -136 -134 -134 Profit before provisions and impairments -4 26 32 43 55 70 Impairment of financial assets 1 -16 -25 -32 -31 -33 Gross result -3 10 7 11 24 36 (Expenses)/income with current profit tax -1 -6 -4 -2 -4 -6 (Expenses)/income with deferred tax 0 0 0 0 0 0 Net result for the period -4 3 3 9 20 31

Source: Company data, WOOD Research

Balance sheet (RON m) 2018 2019 2020 2021E 2022E 2023E Cash and cash equivalents 517 438 355 412 363 383 Financial assets 720 504 664 543 526 442 Due from banks 6 6 7 8 9 10 Loans and advances to customers 1,594 1,654 1,862 2,096 2,294 2,467 Investments in debt instruments at amortised cost 368 341 320 360 394 423 Investment property 80 130 116 130 143 153 Other assets 49 28 41 41 41 41 Deferred income tax assets 23 17 14 14 14 14 Intangible assets 43 46 46 46 46 46 Property, plant and equipment 144 109 90 94 99 104 Total assets 3,544 3,271 3,514 3,743 3,928 4,084

Deposits from banks 7 19 37 40 42 44 Deposits from customers 3,057 2,728 2,898 3,104 3,259 3,375 Borrowed funds 37 47 57 61 64 66 Other liabilities 113 124 158 165 170 175 Subordinated debt 23 34 35 35 35 35 Total liabilities 3,238 2,952 3,184 3,404 3,569 3,694 Share capital 316 316 316 316 316 316 Share premium -68 -68 -68 -68 -68 -68 Retained earnings (Accumulated deficit) -35 -24 -15 -6 15 45 Other equity 92 96 97 97 97 97 Total shareholders’ equity 306 320 330 339 359 390 Total liabilities and shareholders’ equity 3,544 3,271 3,514 3,743 3,928 4,084

Source: Company data, WOOD Research

Patria Bank 10 WOOD & Company

DuPont Analysis 2018 2019 2020 2021E 2022E 2023E Net interest income 3.2% 3.8% 3.6% 3.6% 3.6% 3.6% Net fee and commission income 0.6% 0.8% 0.7% 0.8% 0.8% 0.8% Other operating income 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% Net operating income 4.6% 5.2% 4.9% 4.9% 4.9% 5.0% Personnel expenses -2.1% -2.0% -1.9% -1.8% -1.7% -1.6% Depreciation and amortisations expense -0.5% -0.7% -0.7% -0.7% -0.7% -0.6% Other operating and administrative expenses -2.0% -1.7% -1.4% -1.3% -1.1% -1.0% Total operating expenses -4.7% -4.4% -3.9% -3.7% -3.5% -3.3% Profit before provisions and impairments -0.1% 0.8% 0.9% 1.2% 1.4% 1.7% Impairment of financial assets 0.0% -0.5% -0.7% -0.9% -0.8% -0.8% Gross result -0.1% 0.3% 0.2% 0.3% 0.6% 0.9% (Expenses)/income with current profit tax 0.0% -0.2% -0.1% 0.0% -0.1% -0.1% (Expenses)/income with deferred tax 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% ROA -0.1% 0.1% 0.1% 0.3% 0.5% 0.8% ROE -1.5% 1.1% 0.9% 2.8% 5.8% 8.2%

Source: Company data, WOOD Research

KPIs 2018 2019 2020 2021E 2022E 2023E Growth rates Loans and advances to customers 16.3% 3.7% 12.6% 12.6% 9.5% 7.5% Deposits -5.4% -10.8% 6.2% 7.1% 5.0% 3.6% Equity 36.3% 4.5% 3.1% 2.9% 6.0% 8.5% Assets -5.4% -7.7% 7.4% 6.5% 4.9% 4.0% Net income -90.9% n.m. -15.4% 226.4% 115.5% 50.4% Net interest income -0.9% 11.6% -7.1% 7.6% 5.6% 8.4% Balance sheet ratios Net loans to deposits 52.1% 60.6% 64.2% 67.5% 70.4% 73.1% Deposits to assets 86.3% 83.4% 82.5% 82.9% 82.9% 82.6% Net loans to assets 45.0% 50.5% 53.0% 56.0% 58.4% 60.4% Equity to assets 8.6% 9.8% 9.4% 9.1% 9.1% 9.5% Capital adequacy ratio 15.7% 17.4% 21.1% 19.6% 19.1% 18.9% Tier 1 capital ratio 14.4% 14.9% 16.4% 15.3% 15.2% 15.3% Loan quality NPLs to gross loans 19.7% 12.1% 11.4% 11.7% 10.0% 8.8% Provisions to gross loans 11.0% 6.7% 6.9% 6.8% 6.8% 7.0% NPL coverage 55.9% 55.3% 60.3% 58.3% 68.0% 79.6% Profitability NIM 3.2% 3.8% 3.6% 3.6% 3.5% 3.6% Provision adj. NIM [WOOD calculation] 3.2% 3.3% 2.8% 2.7% 2.8% 2.8% Costs to average assets -4.7% -4.4% -3.9% -3.7% -3.5% -3.3% C/I 102.3% 85.1% 80.9% 76.0% 71.0% 65.8% COR 0.0% -1.0% -1.4% -1.6% -1.4% -1.4% Pre-tax income to average assets -0.1% 0.3% 0.2% 0.3% 0.6% 0.9% Effective tax rate 24.7% -64.8% -58.1% 16.0% 16.0% 16.0% ROA n.m. 0.1% 0.1% 0.3% 0.5% 0.8% ROE n.m. 1.1% 0.9% 2.8% 5.8% 8.2% ROTE n.m. 1.3% 1.0% 3.3% 6.7% 9.3% Per share data Number of shares outstanding (m) 3,115 3,115 3,115 3,115 3,115 3,115 Average price per share (RON) 0.12 0.09 0.10 0.09 0.09 0.09 EPS (RON) -0.001 0.001 0.001 0.003 0.007 0.010 BVPS (RON) 0.098 0.103 0.106 0.109 0.115 0.125 Tangible BVPS (RON) 0.084 0.088 0.091 0.094 0.101 0.110 P/E (x) n.m. n.m. >100 30.6x 14.2x 9.4x P/BV (x) 1.2x 0.9x 1.0x 0.9x 0.8x 0.7x P/Tangible BV (x) 1.4x 1.0x 1.1x 1.0x 0.9x 0.8x DPS (RON) 0.0 0.0 0.0 0.0 0.0 0.0 Dividend yield (%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Source: Company data, WOOD Research

Patria Bank 11 WOOD & Company

Important disclosures

This investment research is published by WOOD & Company Financial Services, a.s. (“WOOD&Co”) and/or one of its branches who are authorised and regulated by the Czech National Bank (CNB) as Home State regulator and in Poland by the Polish Financial Supervision Authority (KNF), in Slovakia by the National Bank of Slovakia (NBS), in Italy by the Companies and Stock Exchange Commission (CONSOB) and in the UK by the Financial Conduct Authority (FCA) as Host State regulators.

This investment research was prepared by WOOD&Co with financial assistance from Taipei China through the TaiwanBusiness EBRD Technical Cooperation Fund managed by the European Bank for Reconstruction and Development (“EBRD”). Neither EBRD nor Taipei China has had any editorial rights or other influence on the content of this investment research. Neither EBRD nor Taipei China makes any representation or warranty or assumes any responsibility or liability in relation to the contents of this investment research or reliance thereon. The views expressed in this investment research are those of WOOD&Co and can in no way be taken to reflect the official opinion of EBRD or of Taipei China. EBRD may, as of the date hereof or in the future, have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties contained or named in this investment research or in their affiliates.

This investment research was completed on 26/05/2021 at 16:00 CET and disseminated on 27/05/2021 at 07:30 CET.

WOOD&Co’s rating and price target history for Patria Bank in the preceding 12-month period: Date Rating Date PT 20/05/2020 HOLD – initiation of coverage 20/05/2020 RON 0.085 27/05/2021 RON 0.104

A history of all WOOD&Co’s investment research disseminated during the preceeding 12-month period can be accessed via our website at https://research.wood.com.

The meanings of recommendations made in WOOD&Co’s investment research are as follows: BUY: The stock is expected to generate total returns of over 15% during the next 12 months as measured by the price target. HOLD: The stock is expected to generate total returns of 0-15% during the next 12 months as measured by the price target. SELL: The stock is expected to generate a negative total return during the next 12 months as measured by the price target. RESTRICTED: Financial forecasts, and/or a rating and/or a price target is restricted from disclosure owing to Compliance or other regulatory/legal considerations such as a blackout period or a conflict of interest. NOT RATED: Suspension of rating after 30 consecutive weekdays where the current price vis-à-vis the price target has been out of the range dictated by the current BUY/HOLD/SELL rating. COVERAGE IN TRANSITION: Due to changes in the Research team, the disclosure of a stock’s rating and/or price target and/or financial information are temporarily suspended.

As of the end of the last calendar quarter, the proportion of all WOOD&Co’s investment research vis-à-vis the proportion of subject companies that were clients over the previous 12 months is as follows:

BUY HOLD SELL Restricted NOT RATED Coverage in transition Equity Research Coverage 55% 37% 8% 1% n.a. 1% IB Clients 1% 1% n.a. 1% n.a. n.a.

Any prices of financial instruments quoted in this investment research are taken as of the previous day’s market close on the home market unless otherwise stated. Details of the methodologies used to determine WOOD&Co’s price targets and risk assessment related to the achievement of the targets are outlined throughout the most recent substantive report/note on the subject company. It should be assumed that the risks and valuation methodology presented in daily news or flash notes, and not changing WOOD&Co’s estimates or ratings, are as set out in the most recent substantive research report/note on the subject company and can be found on our website at https://research.wood.com. WOOD&Co’s policy is to update investment research as it deems appropriate, based on developments in the subject company, sector or market that may have a material impact on the views or opinions stated in the investment research.

WOOD Research Disclosures (as of 27 May 2021) Company Disclosures Alior Bank 5 AmRest 5 ANY Security Printing Company PLC 5 Banca Transilvania 5 Bank of Cyprus 4 BRD 5 5 Santander Bank Polska 5 CCC 5 CD Projekt 5 Ceska zbrojovka Group 1, 2, 3 CEZ 5 CME 5 Dino 5 DO&CO 5 5 Erste Group Bank 5 Eurobank 4 Eurocash 4, 5 Fortuna 5 1, 2, 3, 4, 5 Graphisoft Park 5 ING BSK 5 Kazatomprom 5 Kernel 5 Kety 5 KGHM 5 Kofola CS 5 Komercni 4, 5 Kruk 5 Lotos 5 MedLife 4 MONETA Money Bank 5 O2 Czech Republic 1, 4, 5 OMV 3, 5 Orange PL 5 Piraeus Financial Holdings S.A. 1, 2, 3 Pekao 4, 5 PGE 5

Patria Bank 12 WOOD & Company

PGNiG 5 Philip Morris CR 5 PKN Orlen 5 PKO BP 4, 5 PZU 4, 5 5 Santander Bank Polska 5 Siauliu Bankas 1, 2, 4 Tauron 5 TBC Bank 3 Ten Square Games 3 5 5 Warsaw Stock Exchange 5

# Description 1 The company currently is, or in the past 12 months was, a client of WOOD&Co or any of its affiliates for the provision of corporate finance/investment banking services. 2 In the past 12 months, WOOD&Co or any of its affiliates have received compensation for corporate finance/investment banking services from the company. 3 In the past 12 months, WOOD&Co or any of its affiliates have been lead manager or co-lead manager of a publicly disclosed offer of the company’s financial instruments. 4 In the past 12 months, WOOD&Co or any of its affilates have acted as broker to the company 5 WOOD&Co or any of its affiliates are market maker(s) or liquidity provider(s) in relation to financial instruments of the company. 6 In the past 12 months, WOOD&Co or any of its affiliates have provided to the company any services set out in Sections A and B or Annex I to the Directive 2014/65/EU of the European Parliament and of the Council, other than services listed under points 1, 3, 4 or 5 above, or received compensation for such services from the company. 7 The authoring analyst or any individual involved in the preparation of this investment research have purchased/received shares in the company prior to a public offering of those shares; and the price at which they were acquired along with the date of acquisition are disclosed above. 8 The authoring analyst or any individual involved in the preparation of this investment research has a direct ownership position in securities issued by the company. 9 A partner, director, officer, employee or agent of WOOD&Co and its affiliates, or a member of his/her household, is an officer, or director, or serves as an advisor or board member of the company. 10 WOOD&Co or its affiliates hold a net long or short position exceeding the threshold of 0,5% of the total issued share capital of the company, calculated in accordance with Artcle3 of Regulation (EU) No 236/2012 and with Chapters III and IV of Commission Delegated Regulation (EU) No 918/2012. 11 The company owns more than 5% of the total issued share capital in WOOD&Co or any of its affiliates.

The authoring analysts who are responsible for the preparation of this investment research have received (or will receive) compensation based upon (among other factors) the overall profits of WOOD&Co, which includes corporate finance/investment banking, sales and trading and principal trading revenues. However, such authoring analysts have not received, and will not receive, compensation that is directly based upon or linked to one or more specific activities, or to recommendations contained in the investment research. One factor in equity research analyst compensation is arranging corporate access events/meetings between institutional clients and the management teams of covered companies (with the company management being more likely to participate when the analyst has a positive view of the company). WOOD&Co and its affiliates may have a corporate finance/investment banking or other relationship with the company that is the subject of this investment research and may trade in any of the designated investments mentioned herein either for their own account or the accounts of their clients, in good faith or in the normal course of market making. Accordingly, WOOD&Co or their affiliates, principals or employees (other than the authoring analyst(s) who prepared this investment research) may at any time have a long or short position in any such designated investments, related designated investments or in options, futures or other derivative instruments based thereon. WOOD&Co manages conflicts of interest arising as a result of preparation and publication of research through its use of internal databases, notifications by the relevant employees and Chinese Walls as monitored by Compliance. For further details, please see our website at https://www.wood.cz/mifid- information/. The information contained in this investment research has been compiled by WOOD&Co from sources believed to be reliable, but (with the exception of the information about WOOD&Co) no representation or warranty, express or implied, is made by WOOD&Co, its affiliates or any other person as to its fairness, accuracy, completeness or correctness. WOOD&Co has not independently verified the facts, assumptions, and estimates contained herein. All estimates, opinions and other information contained in this investment research constitute WOOD&Co’ judgement as of the date of this investment research, are subject to change without notice and are provided in good faith but without legal responsibility or liability. WOOD&Co salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients and our proprietary trading desk that reflect opinions that are contrary to the opinions expressed in this investment research. WOOD&Co’s affiliates, proprietary trading desk and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed in this investment research. This investment research is provided for information purposes only and does not constitute or form part of an offer or invitation or solicitation to engage in investment activity or to buy or sell any designated investments discussed herein in any jurisdiction. As a result, the designated investments discussed in this investment research may not be eligible for offer or sale in some jurisdictions. This investment research is not, and under no circumstances should be construed as, a solicitation to act as a securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that jurisdiction. This investment research does not have regard to the investment objectives, financial situation or particular needs of any particular person. Investors should consider this report as only a single factor in making their investment decision and obtain advice based on their own individual circumstances before making an investment decision. To the fullest extent permitted by law, none of WOOD&Co, its affiliates or any other person accepts any liability whatsoever for any direct or consequential loss arising from or in connection with the use of this investment research. For United Kingdom or EU Residents: This investment research is for persons who are eligible counterparties or professional clients within the meaning of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU and is exempt from the general restrictions in section 21 of the Financial Services and Markets Act 2000 (or any analogous legislation) on the communication of invitations or inducements to engage in investment activity on the grounds that it is being distributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High Net Worth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended). For United States Residents: This investment research distributed in the United States by WOOD&Co, and in certain instances by Brasil Plural Securities LLC (“Brasil Plural”), a U.S. registered broker dealer, only to “major U.S. institutional investors”, as defined under Rule 15a-6 promulgated under the U.S. Securities Exchange Act of 1934, as amended, and as interpreted by the staff of the U.S. Securities and Exchange Commission (“SEC”). This investment research is not intended for use by any person or entity that is not a major U.S. institutional investor. If you have received a copy of this research and are not a major U.S. institutional investor, you are instructed not to read, rely on or reproduce the contents hereof, and to destroy this research or return it to WOOD&Co or to Brasil Plural. Analyst(s) preparing this report are employees of WOOD&Co who are resident outside the United States and are not associated persons or employees of any U.S. registered broker-dealer. Therefore the analyst(s) are not be subject to Rule 2711 of the Financial Industry Regulatory Authority (“FINRA”) or to Regulation AC adopted by SEC which, among other things, restrict communications with a subject company, public appearances and personal trading in securities by a research analyst. Any major U.S. Institutional investor wishing to effect transactions in any securities referred to herein or options thereon

Patria Bank 13 WOOD & Company

should do so by contacting a representative of Brasil Plural. Brasil Plural is a broker-dealer registered with the SEC and a member of FINRA and the Securities Investor Protection Corporation. Its address is 545 Madison Avenue, 8th Floor, New York, NY 10022 and its telephone number is 212-388-5613. WOOD&Co is not affiliated with Brasil Plural or any other U.S. registered broker-dealer.

The views and sentiments expressed in this investment research and any findings thereof accurately reflect the analyst’s truthful views about the subject securities and or issuers discussed herein.

Patria Bank 14 WOOD & Company

This page has been left blank intentionally

Patria Bank 15 WOOD & Company

CONTACTS Czech Republic Poland UK Italy Kristen Andrasko namesti Republiky 1079/1a Skylight Zlote Tarasy City Point, 11th Floor Via Luigi Settembrini, 35 Head of Equities Palladium Zlota 59 1 Ropemaker Street 20124 Milan +420 222 096 253 110 00 Praha 1 00 120 Warszawa London EC2Y 9HT Italy [email protected] Czech Republic Poland Tel +420 222 096 111 Tel +48 22 222 1530 Tel +44 20 3530 0691 Tel +39 02 36692 500 Fax +420 222 096 222 Fax +48 22 222 1531 Bloomberg page WUCO

Romania www.wood.com Metropolis Center 89-97 Grigore Alexandrescu St. 010624 Bucharest 1 Tel.: +40 316 30 11 81 Research Co-Head of Research/ Head of Research Co-Head of Research/Head of Greek Head of Consumer/Industrials Macroeconomics Poland Research Lukasz Wachelko Raffaella Tenconi Marta Jezewska-Wasilewska Alex Boulougouris +48 22 222 1560 +44 20 3530 0685 +48 22 222 1548 +30 211 106 9447 [email protected] [email protected] [email protected] [email protected]

Head of Turkey Research Head of Russia Research Head of Romania Research Macroeconomics Atinc Ozkan Ildar Davletshin Iuliana Ciopraga Alessio Chiesa +90 542 202 3632 +44 203 530 0631 +40 316 30 1185 +44 75177 06102 [email protected] [email protected] [email protected] [email protected]

Head of Financials Head of TMT Energy Utilities/Mining/Pharma Can Demir Piotr Raciborski Jonathan Lamb Bram Buring +44 20 3530 0623 +48 22 222 1551 +44 20 3530 0621 +420 222 096 250 [email protected] [email protected] [email protected] [email protected]

Consumer/Real Estate Energy/Utilities Poland Consumer Jakub Caithaml Ondrej Slama Pawel Wieprzowski Jakub Mician +420 222 096 481 +420 222 096 484 +48 22 222 1549 +420 222 096 320 jakub.caithaml @wood.com [email protected] [email protected] [email protected]

Financials Greece Russia Gaming/Mid-caps David Lojkasek Fani Tzioukalia Dmitry Vlasov Maria Mickiewicz +420 222 096 256 +30 211 106 9449 +44 750 714 6702 +48 602 450 718 [email protected] [email protected] [email protected] [email protected]

Sales Head of Sales Kristen Andrasko Jan Koch Piotr Kopec Ioana Pop +420 222 096 253 +48 22 222 1616 +48 22 222 1615 +44 20 3530 0693 [email protected] [email protected] [email protected] [email protected] Grzegorz Skowronski Jarek Tomczynski Kostas Tsigkourakos Tatiana Sarandinaki +48 22 222 1559 +44 203 530 0688 +30 694 082 5810 Brasil Plural in association with WOOD&Co. [email protected] [email protected] [email protected] 1 212 388 5613 [email protected]

Sales Trading and Execution Services

Zuzana Mora Ermir Shkurti Vladimir Vavra +420 222 096 283 +420 222 096 847 +420 222 096 397 [email protected] [email protected] [email protected]

RECENTLY PUBLISHED REPORTS Date Company/Sector Title Analyst 26/05/21 4iG The rise of a Hungarian technology star Piotr Raciborski, Pawel Wieprzowski 25/05/21 Wizz Air Do you want to go to the seaside? Jakub Caithaml, Alex Boulougouris 20/05/21 EME Macro/Strategy Poland – pressing the growth pedal Raffaella Tenconi, Alessio Chiesa 18/05/21 Titan Cement Hidden value Alex Boulougouris, Fani Tzioukalia 17/05/21 Allterco +60% sound good? Not yet, not for us Pawel Wieprzowski, Piotr Raciborski 14/05/21 WOOD's Universe Seeking ESG alpha among CEE/SEE utilities Bram Buring, Ondrej Slama 13/05/21 Raiffeisen Bank International Riding the recovery Marta Jezewska-Wasilewska, David Lojkasek 11/05/21 Bittnet Systems High growth for a high price Piotr Raciborski, Iuliana Ciopraga 11/05/21 Siauliu Bankas A return to the growth path Alex Boulougouris, David Lojkasek 10/05/21 Astarta Holding Sweet rebirth at the peak of the cycle Pawel Wieprzowski, Maria Mickiewicz 07/05/21 Kety Strong stuff (40%+)… but we want more Pawel Wieprzowski, Maria Mickiewicz 05/05/21 EME Macro/Strategy: Greece The state of play Raffaella Tenconi, Alessio Chiesa 05/05/21 Greece A fresh comeback Alex Boulougouris, Raffaella Tenconi 04/05/21 EME Macro/Strategy: Turkey Modest growth prospects, with worrying inflation Raffaella Tenconi, Alessio Chiesa 04/05/21 The Rear-View Mirror – EME markets Greece performs well again, but volumes down Research Team 04/05/21 North Macedonian Banks Growth story to continue after COVID-19 David Lojkasek, Alex Boulougouris Although the information contained in this report comes from sources WOOD & Company believes to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice. This report is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.