• Full name: Republic of Bulgaria • Memberships: European Union (since 2007), NATO (since 2004) AUSTRIA • Population: 7.2 M HUNGARY • CapitalSWITZ.: Sofia • Area: 110,994 sq km (42,855 sq miles)SLOVENIA Official language: Bulgarian FRANCE • CROATIA • Traditional religion: Orthodox Christianity ROMANIA • Monetary unit: Bulgarian Lev (plural: Levs, code: BGN) COMMONWEALTH OF • A currency board arrangement was established in 1997BOSNIA- through the Bulgarian INDEPENDENT STATES National Bank Act. HERZEGOVINA • Fixed Exchange rate: EUR 1 = BGN 1.95583 (BGN 1 SERBIA  EUR 0.51) MONACO• Main tax rates: BULGARIA • corporate tax rate of 10%; MONT. KOS. BLACK Sofia • personal income tax rate ofITALY10%; SEA • Value Added Tax Act (VAT) rate of 20%; MACE- ANDORRA • Main exports: Ferrous and non-ferrous metals, petrol DONIA products, foods and drinks, textiles, machines and equipment ALB. • Payment Systems: RINGS, TARGET2 Madrid BNB, BISERA, BISERA7EUR, BORICA, SEPA, ESROT, CENTRAL DEPOSITARY GREECE TURKEY Balearic Lisbon SPAIN Islands 3

PORTUGAL Algiers Tunis MALTA Gibraltar (U.K.) Valletta Nicosia SYRIA Crete CYPRUS Mediterranean Sea Beirut Rabat Damascus LEBANON IRAQ TUNISIA ISRAEL MOROCCO Tripoli Tel Aviv-Yafo Amman

JORDAN Cairo

ALGERIA SAUDI ARABIA

LIBYA EGYPT

Red

Sea Bulgarian Economic Overview

Macroeconomic Indicators

2010 2011 2012 2013 2014 2015 2016 EUR M 37,723 40,954 41,693 41,911 42,750 44,161 47,139 GDP Growth, % 0.1 1.6 0.2 1.3 1.5 3.0 3.4 Current EUR M (330.2) 375.1 (108.4) 765.2 495.2 609.0 1,809.6 account % of GDP (0.9) 0.9 (0.3) 1.8 1.2 1.4 3.9 EUR M 1,170 1,476 1,321 1,384 1,285 1,593 682.8 FDI % of GDP 3.1 3.6 3.2 3.3 3.0 3.5 1.5 Budget deficit/ % of GDP (3.2) (2.0) (0.3) (0.4) (5.5) (1.7) 0.5 surplus

Growth of Real GDP, Consumption and Investments Bulgaria Current Ratings

Date Outlook Rating

5 June 2015 Stable Baa2

2 Dec 2016 Stable BB+

2 Dec 2016 Stable BBB-

4 Source: Bulgarian National Bank, National Statistical Institute, Ministry of Finance Bulgarian Economic Overview

Main Economic Indicators – Bulgaria GDP (growth, %) 3.4 HICP inflation ( period average, %) 3.0 3.2 2.9 3.0 3.0 2.4 2.0 1.7 1.5 1.5 1.3 1.1 0.5 0.4

2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019 -1.6 -1.1 -1.2

Unemployment rate ( %)

12.3 12.9 11.3 11.4

9.1 8.1 7.2 6.7 6.4

2011 2012 2013 2014 2015 f2016 f2017 f2018 f2019

5 Source: Autumn Macroeconomic Forecast 2016 by Ministry of Finance 2. Fibank and the Bulgarian Banking System • The Banking System Structure • Current Status of the Bank System • Fibank and Bulgarian Banking System • Fibank: Market Share and Market Position Banking System Structure

The Bulgarian banking sector comprises of 27 banks, allocated in three groups based on BNB classification:

The five largest banks The other The Foreign bank based on total assets Bulgarian banks branches in Bulgaria

Group I: Group II: Group III:

• UniCredit Bulbanк • Raiffeisenbank, Bulgaria • Citi Bank Europe - Bulgaria branch • DSK Bank (OTP Group) • Societe Generale Expressbank • BNP Paribas S.A., Sofia branch • First investment bank • Central Cooperative Bank • ING Bank N.V., Sofia branch • United Bulgarian Bank (NBG Group) • Cibank • T.C. Ziraat bank, Sofia branch • Eurobank EFG, Bulgaria • Piraeus Bank Bulgaria • Isbank Gmbh-Sofia branch • Allianz Bank, Bulgaria • Investbank • Bulgarian Development Bank • Procredit Bank • Municipal Bank • International Asset Bank • Bulgarian-American Credit Bank • D Commerce Bank • TBI Bank • Tokuda Bank • Texim Bank • Commercial Bank Victoria

7 Source: Bulgarian National Bank and National Statistical Institute, December 2016 Current Status of the Bank System

Banking Sector as at 31 December 2016

у/oy 2010 2011 2012 2013 2014 2015 2016 During the fourth quarter of 2016 deposits and Bank system assets, BGN M 73,726 76,811 82,416 85,747 85,135 87,524 92,095 Growth of assets in the bank balance sheet assets of the banking system 4.0 4.2 7.3 4.0 -0.7 2.8 5.2 system,% increased. The increase in cash and cash balances Bank system profit, BGN M 616.6 586 566.8 584.9 746.3 898.4 1 262.3 Profit growth, %, y/oy (20.96) (4.9) (3.3) 3.2 27.6 20.4 40.5 with the BNB and debt securities accounted for the Bank system deposits, BGN M 46,928 52,808 57,256 62,230 63,710 69,276 74,129 growth of liquid assets. As of end-December, the Growth of deposits, % 8.4 12.5 8.4 8.7 2.4 8.7 7.0 Bank system loans, BGN M 53,073 55,208 56,847 57,376 54,158 52,256 52,442 liquidity ratio calculated under BNB Ordinance No. Growth of loans, % 2.9 4.0 3.0 0.9 -5.6 -3.5 -1.8 11 reached 38.24% Capital adequacy, % 17.48 17.53 16.7 16.85 21.95 22.18 22.79* Liquidity, % 24.37 25.57 26.0 27.1 30.12 36.71 38.24 *As at Sept 2016

8 Source: Bulgarian National Bank, December 2016 Fibank and the Bulgarian Banking System

Fibank and the Banking Sector as at 31 December 2016 in BGN M December 2015 December 2016 Growth, % Banking system 87,524 92,095 5.2 Assets Fibank 8,680 8,852 2.0

Deposits (other than from Banking system 69,276 74,129 7.0 credit institution) Fibank 7,454 7,691 3.2 Deposit of individuals Banking system 44,407 47,196 6.3 and households Fibank 5,954 6,376 7.1

Banking system 52,256 52,442 0.4 Loans to non-banks Fibank 5,601 5,502 (1.8)

Banking system 8,718 8,677 (0.5) Consumer loans Fibank 743 762 2.6

Banking system 8,764 8,772 0.1 Mortgage loans Fibank 595 550 (7.5)

Banking system 33,285 33,180 (0.3) Corporate loans Fibank 4,120 4,058 (1.5)

in BGN M December 2015 December 2016 Growth Banking system 898 1 262 40.5 Profit Fibank 12.7 90.2 610.9

9 1 Source: Bulgarian National Bank, Dec 2015 and Dec 2016 ; Unconsolidated data Fibank: Market Share and Market Position

As at Dec 2016 Market position/ share Corporate loans 2nd/ 12.2% Deposits from individual and house holds 3nd/ 13.5% Assets 3rd/ 9.6% Deposits NFI 3rd/ 10.4% Loans NFI 3rd/ 10.6% Mortgage loans 6th/ 6.6% Consumer lending 6th/ 9.1% Top 10 Banks Assets Deposits NFI Loans NFI

14 893 9 790 18 626 UniCredit 13 485 UniCredit UniCredit 17 368 9 495 9 786 7 082 11 643 DSK (OTP … 9 361 DSK (OTP … DSK (OTP Group) 11 100 7 036 8 852 Fibank 7 691 Fibank 5 502 Fibank 8 680 7 454 5 601 6 832 Eurobank 5 573 Eurobank 4 572 UBB (NBG Group) 6 559 4 635 4 333 6 818 UBB (NBG … 5 571 UBB (NBG … 4 344 Eurobank 5 760 5 089 4 803 6 364 SG … 4 827 Raiffeisenbank 3 885 Raiffeisenbank 6 450 4 339 3 703 5935 4 749 3 616 SG Expressbank 5274 Raiffeisenbank 4 760 SG … 3 439 CCB 4 970 4 458 2 141 4 642 CCB 4 175 CCB 2 070 As at Dec`16 3 103 Cibank Allianz Bank 2 178 Piraeus 1 780 2 687 2 011 1 989 As at Dec`15 2 908 Piraeus 2 172 Cibank 1 708 2 861 Piraeus 2 044 1 555

10 Source: Bulgarian National Bank, Dec 2015 and Dec 2016 ; Unconsolidated data Fibank: Market Share and Market Position

Assets Deposits (other than from credit institution) Market share Market share 11.6% 10.8% 10.2% 10.5% 10.3% 10.4% 9.9% 9.6% 10.0% 8.7% 9.0% 7.9% 8.4% 6.7%

2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Growth y/y Growth y/y

23.4% 28.3% 20.7% 25.7%

16.1% 13.2% 15.8% 14.0% 12.5% 7.3% 7.8% 5.2% 8.4% 8.4% 8.7% 8.7% 4.0% 4.2% 4.0% 6.2% 7.0% 2.8% 2.0% 0.4% 2.4% 3.2% -0.7% 0.6% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 Fibank Banking system Fibank Banking system

11 Source: Bulgarian National Bank, Unconsolidated data Fibank: Market Share and Market Position Loans to non-banks Profit 31.6% Market share Market share 11.5% 10.7% 10.6% 8.9% 7.7% 8.1% 6.5%

7.1% 5.0% 6.2% 5.1% 3.5% 1.4%

2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016

Growth y/y 610.9% Growth y/y 539.6%

22.6% 22.6%

15.1% 10.1% 40.5% 8.7% -3.7% 18.4% 3.2% 27.6% 20.4% 2.9% 4.0% 3.0% -3.3% 0.9% -58.3% -21.0% -4.9% -20.8% 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 -3.5% -85.9% -5.6% -10.4% Fibank Banking system Fibank Banking system 12 Source: Bulgarian National Bank, Unconsolidated data 3. Fibank at a Glance Fibank at a Glance

In 1997 The European Bank for Reconstruction and Development (EBRD) Shareholders’ structure acquires directly 20% of the Fibank`s capital. EBRD has sold his shares in the end of 2005; 2003-2005: Fibank entered into10 Subordinated term debt agreements for the total amount of EUR 28 M included in the Tier 2 capital; In August 2005, the Bank issued its first perpetual subordinated bonds with par value of €27 M included in the Tier 2 capital. The arranger of the instrument was Dresdner Bank; 2006: Fibank issued a perpetual debt for the total amount of €21 M included in the Tier 2 capital; In October 2006 Fibank issued 1 M ordinary shares with nominal value of BGN 10 each - total BGN 10 M. All of the newly issued shares have been fully paid up. Each of the founding shareholders acquired new shares pro rata from the capital increase; In December 2006 reserves and retained earnings were converted into 8 M ordinary shares distributed pro rata to existing shareholders; In March 2007 Fibank decided on 10 for 1 stock split, where 10 M shares with nominal value of BGN 10 each were replaced by 100 M shares with nominal value BGN 1 each; 855 In May 2007 Fibank issued 10 M new ordinary shares through an IPO. Capital (BGN M) 727 750 FFBH offered 6.5 M shares of its stake in Fibank‟s share capital. The issue 693 was oversubscribed nearly 6 times; 2011: Fibank issued a new €20 M perpetual debt instrument which was 470 505.3 included in the additional Tier I capital of the Bank, meeting all 433.2 requirements of Basel 3; 2012: A second tranche of €20 M perpetual debt instrument was issued which was included in the additional Tier I capital of the Bank, meeting all requirements of Basel 3; 2012: Fibank issued a new hybrid instrument (bond issue) under private subscription with a nominal value of €20 M constituting the first tranche of a bond issue with a total amount of up to €60 M. The amount was 2010 2011 2012 2013 2014 2015 2016 included in the Bank‟s tier 1 capital, meeting all requirements of Basel 3; On 09 January 2014 each of the major shareholders, Messrs Ivaylo Mutafchiev and Tseko Minev, acquired directly 14.9 M additional Fibank shares. As a result each of the abovementioned shareholders owns *No dividends have been paid to shareholders since 46.75 M registered dematerialized shares of the Bank's share the establishment of the Bank capital, i.e. the two of them own a total of 93.5 M shares constituting 85% of the Bank's share capital. 14 Fibank at a Glance

Areas of operation:

Fibank is licensed and registered as: Fibank is present across all key business lines: A Joint-Stock Company (JSC) /registered in the Commercial Corporate Banking Register, since 1993/ SME lending A Credit Institution /licensed by the Bulgarian National Bank Retail banking – a domestic license obtained since 1993, an universal Microlending license - since 1995/ Trade financing A Public Company /registered in the public register of the Financial Supervision Commission since 2007/ Card payments An Investment Intermediary /registered in the public register E-banking of the Financial Supervision Commission since 1997/ Money and capital markets A Primary Dealer of Government Securities (included in the Foreign exchange list of primary dealers of government securities held by the Ministry of Finance of Bulgaria) International payments

Main competitive advantages

Well established market position A streamlined decision-making process An efficient distribution network A good understanding of the Bulgarian market A proven track record in managing risks and a moderate exposure to market risks Insight into corporate client activities and established long-term relationships with personalized service and tailored products First-class customer service Innovative approach to product development 15 Fibank at a Glance

Domestic network Human Resources As at 31 December 2016, Fibank clients are served in 157 outlets all over the country

Regional presence Fibank has 1 branch in Cyprus Fibank has a wholly owned subsidiary in Albania with 10 branches

871 (29.0%) employees work in the Head Office and 2,132 (71.0%) in the branch network; Employees per sex : 33.1% male and 66.9% female; Average age: 39 years; Voluntary turnover for q4 2016 is 3.2%; For q4 2016 the number of participants in training programs reached 3,518 (117% of total Fibank employees). Personnel per age groups

16 6 4. Key Figures and Loan Portfolio Key Figures

Income Statement BGN (thousands) Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2015 FY 2016 Net interest income 63 670 66 330 63 200 70 346 80 614 87 570 75 995 75 066 263 546 319 245 Net fees & commissions income 18 303 19 224 21 986 24 704 21 026 20 878 22 845 26 737 84 217 91 486 Net trading income 3 392 1 790 2 838 2 997 2 586 3 504 3 423 4 424 11 017 13 937 Other net operating income 3 205 4 189 1 991 53 417 3 157 29 166 2 354 5 438 62 802 40 115 Total income from banking operations 88 570 91 533 90 015 151 464 107 383 141 118 104 617 111 665 421 582 464 783 General administrative expenses -45 874 -45 960 -44 693 -44 300 -45 088 -48 371 -49 071 -49 603 -180 827 -192 133 Other income/(expenses), net -6 043 -4 962 -6 381 126 120 -7 474 3 048 1 202 -6 436 108 734 -9 660 Profit before impairment 36 653 40 611 38 941 233 284 54 822 95 794 56 748 55 626 349 489 262 990 Allowance for impairment -33 866 -33 448 -32 850 -228 973 -27 545 -15 476 -98 381 -14 718 -329 137 -156 120 Profit before tax 2 787 7 163 6 090 4 312 27 277 80 318 -41 633 40 908 20 352 106 870 Income tax expense -194 -538 -359 -1 410 -2 895 -8 158 4 115 -4 240 -2 501 -11 178 Profit after tax 2 593 6 625 5 731 2 902 24 382 72 160 -37 518 36 668 17 851 95 692 Net interest income Total income from banking operations (BGN, thousand) (BGN, thousand)

464,783 319,245 421,582 263,546

151,464 141,118 80,614 87,570 107,383 104,617111,665 63,670 66,330 63,200 70,346 75,995 75,066 88,570 91,533 90,015

18 Consolidated data, unaudited Key Figures

Balance Sheet

BGN M Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Liquid assets 2 311 2 071 2 113 2 382 2 584 BGN M 2010 2011 2012 2013 2014 2015 2016 Loans and advances to Total assets 4 999 6 174 7 050 8 778 8 828 8 885 9 090 customers 5 221 5 178 5 212 5 001 5 043 Due to Other assets 1 353 1 389 1 431 1 425 1 462 customers 4 286 5 388 6 190 7 536 7 603 7 660 7 917 Total assets 8 885 8 638 8 756 8 808 9 090 Loans and Due to other customers 7 660 7 485 7 550 7 678 7 917 advances to Other liabilities 476 376 351 308 317 customers 3 417 4 182 4 540 6 021 5 810 5 221 5 043 Shareholders' equity 750 777 855 822 855 Total liabilities 8 885 8 638 8 756 8 808 9 090

Growth, y-oy Assets: 2.3% Deposits : 3.3% Loans: (3.0%) BGN M

191 Consolidated data, unaudited 6 Key Figures

Key Ratios

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Overall cap adequacy 14.52% 14.64% 14.10% 14.72% 14.22% 14.91% 15.10% 15.16%

Tier I cap adequacy 13.46% 13.59% 13.62% 14.23% 14.18% 14.88% 15.07% 15.13%

CET1 adequacy 10.61% 10.87% 10.83% 11.28% 11.24% 11.83% 11.99% 12.03%

ROE (after tax) 1.44% 2.55% 2.74% 2.43% 12.85% 24.46% 9.85% 11.79%

LCR 538.12% 332.80% 423.46% 325.61% 379.28% 382.13% 541.01% 327.37%

NSFR 120.95% 125.16% 123.66% 132.25% 129.67% 130.26% 138.37% 137.61% Liquidity ratio Letter BNB regulatory*** 29.01% 25.45% 24.23% 26.70% 23.82% 23.85% 27.44% 29.14%

Loan Provisioning Ratio (%) 8.71% 9.08% 9.38% 12.32% 12.80% 12.96% 14.83% 14.19%

NPL ratio 12.38% 12.89% 13.36% 23.86% 22.93% 24.57% 24.92% 24.42%

Cost/income ratio** 51.79% 50.99% 50.54% 42.89% 41.99% 37.61% 40.36% 41.34%

Net Interest margin 3.80% 3.82% 3.81% 3.88% 5.17% 5.36% 5.14% 5.04%

**General administrative expenses/Total income from banking operations ***Liquidity ratio Letter BNB regulatory unconsolidated data

201 Consolidated data, unaudited Loan Portfolio

Loan portfolio by sectors of economy Loan portfolio by business lines

Agriculture Communication 3.2% 2.0%Construction Logistics 3.2% Finance 6.0% 1.9% Small and medium Trade enterprises, E 20.2% Industry U definition 16.8% 54.3%

Tourist Services Corporate 3.3% Infrastructure customers Services 7.9% 22.7% Other 9.5% 1.2% Retail Private consumer individuals 23.1% 24.8%

Corporate Loan portfolio as per EU definition for SME (Unconsolidated data)

Consumer Mortgage loans loans 37.7% 43.1%

Credit cards 19.2%

21 Consolidated data as at December 2016 5. Company Profile • Mission Statement • Supervisory and Managing Board • History Highlights • Customer Profile • Awards Mission Statement

Mission

First Investment Bank AD aspires to continue to be one of the best banks in Bulgaria, recognized as a rapidly growing, innovative, customer-oriented bank, offering outstanding products and services to its customers, ensuring excellent careers for its employees, and contributing to the community. The Bank will continue to develop high-technological solutions providing its customers with opportunities for banking from any place around the world at any time.

First Investment Bank Central Office, Sofia First Investment Bank New Head Office, Sofia

23 Supervisory and Managing Board

24 History Highlights

Year Facts

1993 First Investment Bank was established on October 8, 1993, in Sofia. It was granted a full banking licence for carrying out operations in Bulgaria and abroad. 1994 – 1995 The Bank developed and specialised in servicing corporate clients. 1996 FIBank was the first in Bulgaria to offer services enabling banking from home or from the office. FIBank was the first bank to receive a 5-year loan from the European Bank for Reconstruction and Development for financing small and medium-sized enterprises in Bulgaria. 1997 The European Bank for Reconstruction and Development (EBRD) acquires directly 20% of the Fibank`s capital. EBRD has sold his shares in the end of 2005. The Bank started issuing Cirrus/Maestro debit cards, Eurocard/Mastercard credit cards and the American Express card. Fibank was the first Bulgarian bank to offer debit cards with international access. Thompson Bankwatch awarded Fibank its first credit rating. The Bank opened its first branch abroad, in Cyprus. 1998 Fibank obtained its first syndicated loan from foreign banks. The Bank negotiated financing for the import of investment goods from Austria, Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and Switzerland, guaranteed by export insurance agencies. 2000 First Investment Bank started developing its business in the field of retail banking. Deposits from private individuals grew 2.3 times. 2001 First Investment Bank launched the first virtual bank branch in Bulgaria allowing customers to bank via the Internet. 2003 Products and services to individuals became the focus of the Bank‟s activities. Loans to individuals increased over five times during the year. 2004 The Bank expanded its infrastructure. The branch network expanded by 27 new branches and offices, the ATM network more than doubled. 2005 FIBank acquired 80% of the share capital of Diners Club Bulgaria AD. The Bank issued Eurobonds at the amount of EUR 200 M on the Luxembourg Stock Exchange. FIBank was also the first Bulgarian bank to issue perpetual subordinated bonds. 2006 Fibank negotiated financing for SMEs at the amount of USD 10 M for a 5-year term, covered by OPIC. Share capital was increased from BGN 10 M to BGN 20 M through the issuance of 1 M shares. Fibank received a syndicated loan at the amount of EUR 185 M, organised by Bayerische Landesbank with 33 banks participating. Fibank‟s share capital was increased from BGN 20 M to BGN 100 M by transforming retained profit into 8 M new shares with a nominal value of BGN 10 each.

25 History Highlights

Year Facts

2007 Fibank realized the biggest banking initial public offering of shares in Bulgaria. The Bank became a public company and increased its issued share capital from BGN 100 M to BGN 110 M. „Fibank Mobile“ – the first banking mobile portal created by Fibank was successfully launched, containing useful financial information for its customers. Fibank was one of the first banks in Bulgaria to implement the new chip technology when issuing debit and credit cards. The processing of card transactions was transferred to the new authorization centre in Macedonia – CaSys International. The Albanian Central Bank issued a full banking license to First Investment Bank – Albania Sh.a. 2008 Repaid on maturity EUR 200 M of principal and EUR 15 M of interest due under a long-term bond issue by First Investment Finance B.V. Fibank successfully completed the first stage of the new centralized and integrated core banking information system FlexCube, suitable for retail banking as well as for corporate banking, with a module for Internet banking and a module for work processes management. Fibank received a syndicated loan at the amount of EUR 65 M from 11 leading banks all over the world. Fibank became the first bank in Bulgaria with its own corporate blog – an Internet platform where clients, employees and fans of Fibank can exchange ideas, share impressions of the Bank in general, its products and services, its initiatives and values. 2009 Fibank signed an Agreement with the Bulgarian Development Bank for a credit facility for funding agricultural producers. Fibank became the only Bulgarian bank-partner under the GSM-102 Program for the South East Balkans. The Program aims at relieving the export of USA agricultural goods and facilitating the payment of the latter. Fibank signed an Agreement with the National Guarantee Fund EAD, a subsidiary of the Bulgarian Development Bank, for co-financing of small and medium-sized enterprises in Bulgaria. Fitch upgraded First Investment Bank's (Fibank) Support rating from '5' to '3„ In November 2009, Fibank and China Eximbank signed a Memorandum of Understanding for a strategic business relationship. 2010 Fibank set up two new companies: Debita OOD and Realtor OOD. The number of Fibank's customers reached 1,000,000. Fibank‟s Socila Responsibility Fund financed 6 projects for children deprived of parental care. Fibank's Virtual Branch introduced identification by a Token device. Fibank acquired a 2% minority stake of the share capital of Health Insurance Fund Prime Health AD, with the option to list the amount of shares needed to become a major shareholder at the next increase of capital of the company. Fitch Ratings affirmed Fibank's ratings: Long-term Issuer Default Rating 'BB-', Short-term IDR 'B', Individual rating 'D„. Support rating of '3', Support rating floor 'BB-„. Fibank's Social Responsibility Fund financed 6 projects for children deprived of parental care. Fibank acquired a minority share in Health Insurance Fund Prime Health AD, with the option of listing additional capital. Fibank became the first bank in Bulgaria to introduce Maestro and MasterCard PayPass. Fibank obtained controlling shares in two companies: FiHealth and Framas Enterprises.

26 History Highlights

Year Facts 2011 Fibank's management team was strengthened by new members of the Managing Board and Deputy Executive Directors. Fibank issued a new EUR 20 M. hybrid debt instrument which was included in the Tier I capital of the Bank. Balkan Financial Services Ltd became a subsidiary of First Investment Bank . Fitch Ratings affirmed Fibank's ratings, revising its outlook to "stable". FIBank‟s ratings are, as follows: Long-term Issuer Default Rating (LT IDR) 'BB-', Outlook Stable, Short-term Issuer Default Rating 'B', Individual Rating 'D', Support rating '3' and Support Rating Floor 'BB-„. Change in legal form of Balkan Financial Services, subsidiary of First Investment Bank. First General Meeting of bond holders of the first tranche of First Investment Bank bond issue, ISIN code BG2100008114. Fibank renewed its five-year partnership with the Bulgarian Olympic Committee and became the main sponsor of the Bulgarian Athletics Federation (BFLA). 2012 The Bank donated BGN 300,000 to the people who suffered from the floods in Harmanli and Svilengrad municipalities, as part of its corporate social responsibility program. Fibank was included in the Top 1000 banks in terms of Tier 1 capital of the world ranking, determined by The Banker prestige edition. The Bank signed an agreement with the European Investment Fund for the financing of small and medium enterprises under the JEREMIE initiative on the total amount of EUR 70 M, at twice lower interest rates and preferential terms for collateral and fees and commissions. The Bank started redemption of investment gold and silver in the form of bars and coins with the cooperation of the Italian refinery “Italpreziosi”. New products were developed for contactless payments –the Visa Classic payWave credit cards and Visa Electron payWave debit cards, based on NFC (Near Field Communication) contactless technology. 2013 On 15 August 2013 the Bank has signed with the Hungarian MKB Bank a share purchase agreement to acquire 100% of shares of MKB Unionbank Fibank (First Investment Bank) began lending at preferential terms under the JEREMIE Programme Fibank renewed the framework agreement with Eximbank Taiwan Fibank successfully finalized the purchase of 100% of MKB Unionbank EAD from the Hungarian MKB Bank Zrt, a subsidiary of the German Bayerische Landesbank AG. Fibank has signed the first RSI guarantee agreement for Bulgaria aimed at innovative enterprises 2014 Fibank successfully finalized the merger of MKB Unionbank EAD. The procedure for IT and technological merger and merger for the accounting purposes of the two banks was also completed. The Bank signed a new agreement with the National Guarantee Fund for a guarantee scheme to provide financing for SME in Bulgaria under risk sharing mechanism 2015 Fibank signed an agreement with International Finance Corporation (IFC), part of the World Bank Group, aimed to strengthen the bank‟s corporate governance and risk management in accordance with the best practices. The two institutions have a long-term cooperation dated from 2010. Fibank‟s rating from Fitch Ratings is as follows: Long-term IDR 'B-' with a stable outlook ; Short-term IDR 'B„; Viability Rating 'b-„; Support Rating '5'; Support Rating Floor 'No Floor' „. 2016 Fibank signed a new BGN 20 million agreement with the National Guarantee Fund for a portfolio guarantee scheme to provide financing for the Bulgarian SMEs. In accordance with the Plan approved by the European Commission, Fibank (First Investment Bank) has repaid the state aid of BGN 1.2 billion received in June 2014. The international rating agency Fitch has affirmed the Bank's ratings with Stable outlook. 27 Fibank has successfully passed the Asset Quality Review and the Stress Test Customer Profile

Retail vs. Corporate Retail customers per gender (number of clients)

Retail customers per age groups

Retail customers per gender and products Retail customers per age groups and products

28 Data as at 31 December 2016 Customer Profile Retail customers per education

Consumer loans Credit cards

Mortgage loans

29 Awards

Best Bank in Bulgaria Quality of Service

2010 2002 Bank of the year by market share, by Bank of the 2003 2011 Bank of the Customer, year association 2006 2012 2008 by the influential Bulgarian daily “Pari” (“Money”) 2009 2001 2011 Bank of the year by Bank of the year association 2007 The best customers service of the year by International 2012 Finance Exhibition “Banks, Investments, Money”

2011 Best Bank in Bulgaria by the financial magazine Euromoney 2012 Bank of the Client by Bank of the year association

2014 Best Retail Bank in Bulgaria by Global banking & Finance 2012 Mystery Client by Bank of the year association

2009 2010 Management 2011 2013 STP Award, Excellent quality , Commerzbank 2014 2001 Mrs. Maya Georgieva Banker of the year, by 2011 financial magazine Banker 2009 Straight-Through Processing (STP) Excellence 2011 Award, Deutsche Bank 2010 2005 Mr. Matthew Mateev Banker of the year For achieving a Straight Through Processing Rate in 2009 excess of 97% for US Dollar payments sent to Citibank New York

2012 Mr. Vasil Christov Banker of the year, by financial magazine Banker 2014 Innovation in Retail Banking Bulgaria and Best Private Bank Of The Year by Finance publishing 30 Awards

Brand/ Products/ Web/Other awards 2009 First prize for best corporate BG Site 2012

2004 2007 Best public company on the Bulgarian Stock 2005 Financial product of the year, by International Finance 2008 Exchange, by "Dnevnik" newspaper 2006 Exhibition “Banks, Investments, Money” 2007 Most Innovative Banking Product (Credit and OSCARD for innovative co-branded credit card 2014 Debit Card) by Global banking & Finance 2008 Fibank-Vivatel

Best maturity deposits by Handelsblatt 2011 2014 Best brand in financial institutions by My love marks newspaper 2012

2012 2014 2014 Developing card payments and bringing Fibank is the strongest brand in Bulgarian market by the innovations by MasterCard Superbrands 2009 Three awards for charity at the Fifth Annual Donors' Conference organized by the Bulgarian Donors' 2015 Card Product of the Customers by b2b magazine Forum

2012 Golden Martenitsa by Made in Bulgaria union 2015 Best marketing team by Baawards

VISA International Certificate 2006 2016 Annual awards for charity and CSR “Golden for VISA Cards Retail Sales Volume heart” by “Business Lady” magazine

Investment in a digital and civil literate The Bank‟s corporate site won category 2016 2009 society by Digital Kids “Business” by Bulgarian Web Awards 2009

National charity campaign 2009 The best corporate blogs in Bulgaria by Nova Vizia 2016 “Easter for everyone”. Disclaimer

This document does not form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. First Investment Bank has not, and will not, register any securities under the U.S. Securities Act of 1933, as amended, and no securities may be offered or sold in the United States absent registration or an exemption from the registration requirements of that act.

This document contains certain forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause First Investment Bank‟s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

This document contains statistics and other data on the Bulgarian banking industry that have been derived from third party sources and have not been independently verified by First Investment Bank.

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