Covered Bonds Investor Presentation

Covered Bonds Investor presentation

September, 2021 Presentation Topics

1. Prima banka at a glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

2 Prima banka at a glance … fastest growth in fastest growing retail lending market in EU

30.6.2021 (EUR) #1 Fastest growing retail bank Total Assets 4 770mn #1 Housing Loans growth Net profit 17.5mn (2020, 13mn 30.6.2021) #1 Main Bank Customers growth CET 1 17.5% #1 Municipalities Total CAD 18.7% #3 Branch & ATM network NPL ratio 2.0% #1 Only bank in each of 79 SK districts NPL coverage 169% #2 Mobile application client penetration Retail loans 3 559mn; YoY+18% #2 Customer Satisfaction Mortgages 3 375mn; YoY +20% #2 Communication Awareness Branches/ATMs 120/315 #4 Spontaneous Brand Awareness Employees 807 Ownership 99.6% Penta Investments

Central European private equity group Penta acquired the Bank in 2011 from Dexia. Since then the Bank is executing a new strategy with focus on retail, simplicity & efficiency and also branch & ATM coverage.

Source in Appendix, Retail Loans in this context mean Loans to Individuals 3 Prima banka - History … established as municipal bank, currently strongly growing in retail

1993

In 1993 Prvá Komunálna Banka (First Municipal Bank) was established by a group of 193 Slovak municipalities as a 2000 municipal bank. The Bank has specialized in providing Entry of a new majority shareholder Franco-Belgian 2003 services and financing to municipalities in the Slovak banking group Dexia in 2000. Later in 2003 the Bank Republic. was renamed to Dexia banka Slovensko. Bank maintained strong presence in municipal segment 2011 and focused also on corporate lending. The bank 2012 In 2011, Central European private equity group Penta has started to build its position in retail. Investments acquired majority shareholding of the Bank from Dexia. As of 1.1.2012 the Bank changed its 2016 business name to Prima Banka Slovensko and as a part 2017 of the new strategy, it started to focus predominantly on In 2016 the majority shareholder Penta Investments retail clients with revised simplified products and acquired Sberbank Slovensko, which was merged services portfolio as well as on the expansion of the into Prima banka as of 1.8.2017. Prima banka is branch and ATM network. legal successor, business integration is completed, with no connections to the Sberbank Group. 2019

Launch of inaugural Covered Bonds Program.

4 Penta Investments at a glance … Central European investment group, focus on long-term investments

(EUR mn) Retail Healthcare Manufacturing Financial Services Media Real Estate

Dr.Max Dôvera Aero Vodochody Prima banka News and Media Holding Bratislava Fortuna Penta Hospitals Carnibona Privatbanka MDS Prague Empik Primecell Iglotex United Classifieds Warsaw HTSS Slovalco Vltava Labe Media Košice Petit Press Enterprise Value Enterprise Value Enterprise Value Equity Value Enterprise Value Asset Value 3 074 667 195 464 165 1 099

Investment Platforms Investment EBITDA EBITDA EBITDA Net Income EBITDA NOI 287 91 8 24 13 28 • Penta is a Central European private equity group • Dr.Max 3rd largest pharmacy chain in Europe founded in 1994, specializing in long-term • Penta Hospitals largest multi-national hospital investments chain in SK, CZ, PL • Penta provides more than 43 000 jobs • Dôvera largest private health insurer in SK • Fortuna largest CEE betting and games provider • Portfolio Profit amounted to EUR 219mn (-41% • Leading real estate developer in SK, CZ, PL YoY) and Net Income to EUR 134mn (-50% YoY) in 2020. ROE achieved 5,8% EUR mn 2020 YoY YoY% Revenues 6 344 - 76 - 1,2% • Free cash flow continuously reinvested to Adjusted EBITDA 421 - 34 - 7,5% support both organic and acquisition growth Operating Cash Flow 196 + 10 + 5,4% Real Estate Assets Value 1 099 - 124 - 10,1% Total Investments 419 - 194 - 31,6%

Source: audited Financial Statements Penta Investments 2020, reported 2020 Financial Statements of investee companies 5 Presentation Topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

6 Slovak Republic ... stable and fast converging export-oriented economy

EU & NATO member EUR adoption 2004 2009

1993 2007 2012 • Stable A-rated member of EU & EMU Slovak Republic established Schengen member ESM member • Long-term growing economy Population: 5.5 million • Strong GDP growth trend Area: 49 034 km2 • Fiscally in good shape Capital: Bratislava (430 tsd) • Sustainable government debt GDP per capita: 16,772 EUR (2020) • Export-oriented • Strong automotive industry Credit ratings: • Low unemployment A2 stable outlook (Moody’s) • Stable, well capitalized and profitable A+ stable outlook ( S&P ) banking sector A negative outlook (Fitch)

7 Slovak Republic ...strong GDP growth and relatively low government debt

Real GDP Growth Public debt and govt. balance 13,7% 60,6% 61% -9% -8,1% (share of GDP) 10,8% -7,5% 10,2% -8% 10,0% 56% 54,7% 53,6% -6,2% -7% 5,8% 52,4% 5,1% 51,8% 51,9% 51,5% -6% 4,2% 4,1% 5,0% 3,2% 3,2% 51% 49,6% 2,8% 2,8% 2,4% 1,7% 1,5% -4,3% -4,4% 48,2% -5% 3,1% -4% 2,1% 2,1% 2,6% 0,0% 1,6% 1,4% 1,9% 1,9% 1,4% 46% -2,9% -3,1% -4,8% -2,7% -2,6% 0,4% -5,4% -0,2% 43,4% -3% -0,9% 41,0% -1,3% -2% -5,0% 41% -1,0% -1,0% -4,5% -1% -6,4% 36,4% -10,0% 36% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2Q 21 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Eurostat Public Debt General Government balance Source: Eurostat Slovakia Euro Area

• Slovak economy growth outperforms EU average Government debt to GDP 180% in long term 160% 140% • GDP growth drop-down due to pandemic in 2020 120% 100,5% • Lower government indebtedness vs. EU average 100% 80% 60,3% despite increase in 2020 60% 40% • Household consumption is main component in 20%

long term GDP growth 0%

Italy

Spain

Malta

Latvia

France

Cyprus

Poland

Ireland

Austria

Greece

Croatia

Finland

Estonia

Sweden

Belgium

Bulgaria

Slovakia

Slovenia

Hungary

Portugal

Romania

Denmark

Germany

Lithuania Euro AreaEuro

• Slovakia overall in a good shape Rep.Czech

Netherlands Luxembourg Source: Eurostat 31/3/2021 8 Slovak Republic ...export-oriented economy, Germany key trading partner

Slovak Export by Countries Slovak Import by Countries

Germany Germany Czech Rep Czech Rep 17% 12% 23% Poland 20% Austria France 15% Poland 15% Hungary Hungary 11% Austria 4% 18% France 4% UK 4% Korea 4% 8% Italy 4% China 6% 7% 7% 9% 6% Rest EU 8% Rest EU Other Non EU Other Non EU

Source: Eurostat 31/12/2020 Source: Eurostat 31/12/2020

100 International Trade Balance • Slovakia is an open export-oriented economy (bn EUR)

79 79 80 80 • 79% of exports go to EU, mainly Germany and 80 76 72 74 74 70 V4 countries 66 68 67 63 65 65 60 62 61 • Structure of the Slovak economy is similar to the 60 German one with a strong emphasis on industry, mainly automotive 40

• International trade slowdown in 2020 due to 20 pandemic restrictions 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Eurostat Import Export

9 Slovak Republic ...low credit spreads, low government bond yields

YTM 10y maturity 10Y Government bond yield 3% 6,0%

5,0% 2% 4,0%

1% 3,0%

2,0% 0% -0,17% 1,0%

-1% 0,0%

-1,0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Bloomberg Slovakia Germany 24/08/2021 Source: Bloomberg 24/8/2021 Inflation (y/y,%) • Low Credit spreads of Slovak government bonds 9% also compared to German Bunds 7% • 10Y government bonds yield still in negative 5% range with significant influence of ECB policy 2,5% 3% • Inflation above 2% and higher than EU average 1% 1,9% • Latest increase in inflation influenced mainly by -1% commodity prices and materials

Source: Eurostat Slovakia Euro Area 30/6/2021

10 Slovak Republic ...labour market improvement supports disposable income

Unemployment Disposable income 21% (y/y, nominal) 12% 19% 10% 17% 8% 15% 6% 13%

11% 4% 3,7% 9% 7,7% 2%

7% 0% 6,8% 5% -2%

Slovakia Euro Area Slovakia Source: Eurostat 30/6/2021 Source: NBS 31/03/2021 Household Debt to Income • Unemployment rate below Euro area average 250%

• Labor market improvement supports 200% disposable income and thus retail loan growth 150% • Unemployment rate slightly increased due to 94% 100% pandemic, however heading for recovery 69% • Despite fast growth of Household Debt to 50%

Income, Slovakia still comfortably below Euro 0% area average

Source: Eurostat 31/12/2019

11 Slovak Republic ...housing price development reflects income growth and low interest rates

Property price per m2 Housing Loans to GDP 2 500 2 298 (EUR) 70% 2 250 2 000 60% 1 750 1 559 50% 1 500 42% 37% 1 250 40%

1 000 30% 750 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20% Source: NBS Flats Houses 30/06/2021 10% Property price/Annual Wage 11 0%

10 8,7 9 Source: Eurostat 31/12/2020 8 7 • Employment and disposable income growth 6 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 with low interest rates drive property prices up Source: NBS 30/06/2021 • Still very high housing affordability also thanks Interest Rates on new housing loans 6,0% to continuous decline of mortgage interest rates • Despite strong growth, housing loans to GDP 4,0% remain well below Euro area average 1,4% 2,0% • High level of home ownership (90%)

0,0% 1,0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: NBS Slovakia EuroZone 30/06/2021 12 Presentation Topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

13 Slovak Banking Market ... stable, well capitalized and profitable banking sector

• Funding of Slovak banks dominated by retail and 120 Total Assets 115% (EUR bn) corporate deposits 100 110% 100 92 85 • L/D ratio still at very comfortable level 80 105% 80 76 71 • Strong lending growth will require also other 67 62 102% 102% 100% 58 59 60 100% 100% funding instruments 99% 95% 95% • Banks using TLTRO + potential for covered bonds 40 90% as only 8% of bank funding are bonds 91% 90% 20 89% • Strong growth in housing loans, decrease in 88% 85% consumer loans and stable corporate loans 0 80% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Total Assets L/D ratio (%) • Almost solely Euro denominated loans Source: NBS

tangible and other assets and Assets intangible assets loan provisions Liabilities and Equity other equity interbank deposits 1.0% cash and banks 13.2% 18.3% 9.7% 2.5% 1.3% Total: EUR 99,9bn Total: EUR 99,9bn issued bonds 24.1% 7.7% 9.0% securities 20.4% 2.0% public deposits other private loans other private deposits 1.6% public loans

43.5% 45.7% retail deposits retail loans

Source: NBS 30/06/2021 Source: NBS 30/06/2021

14 Slovak Banking Market ... stable, well capitalized and profitable banking sector

• Healthy economy supports low and improving 14% Sector NPL Rate vs. NPL Coverage 140% NPL levels for both households and corporates 116,0% 12% 109,6% 120% 105,1% • NPL ratio for housing loans well below average 96,1% 10% 88,3% 100% • Growing overall NPL Coverage 79,2% 76,7% 76,5% 73,4% • Capital well above regulatory requirements 8% 69,2% 80% 6% 5,5% 5,2% 5,3% 60% 4,8% • Solid profitability with recovery in H1 2021 after 4,3% 3,6% 4% 3,1% 40% 2,8% 2,8% 3,0% 2,8% 2020 decline 2,5% 2,5% 2,4% 2,0% 1,6% 1,4% • Bank levy abolished as of 2021 2% 1,3% 1,2% 1,1% 20%

0% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021

Source: NBS Total NPL Rate Mortgage NPL rate NPL Coverage 22% Capital adequacy ratio Sector Profitability 1 400 12% 19,7% 20% 9,9% 18,6% 1 200 10% 18,0% 18,2% 18,2% 17,7% 8,3% 8,3% 8,2% 18% 17,2% 17,3% 1 000 7,8% 7,8% 7,8% 7,9% 7,5% 8% 15,8% 742 16% 800 606 612 640 636 5,3% 6% 555 553 600 499 14% 470 372 4% 400

12% 200 2%

10% 0 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Source: NBS Source: NBS Net Profit (EUR mn) ROE (%)

15 Slovak Banking Market ... lending to individuals funded by growing deposits

45 42,3 45 42,9 Loans toIndividuals 40,7 Deposits of Individuals 40,9 (EUR bn) 38,2 (EUR bn) 40 4,6 40 37,9 4,7 7,9 35,4 35,4 4,6 7,6 35 5,1 35 33,2 31,6 4,4 5,3 31,8 7,1 6,5 28,2 5,8 29,4 30 4,1 30 5,9 9,6 27,0 5,2 5,7 25,9 10,0 24,8 3,9 25,2 4,5 25 5,1 25 3,9 10,8 22,0 3,4 3,9 2,8 11,2 4,6 19,6 11,6 20 17,9 3,8 20 12,6 3,9 4,0 13,3 4,0 3,4 32,6 13,6 15 30,7 15 14,7 14,2 2,8 27,9 2,5 25,2 25,4 22,4 23,3 10 19,7 10 19,9 17,7 17,0 15,8 14,8 14,0 11,3 12,8 11,6 5 5 9,5 7,7 8,3

0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Source: NBS Housing Loans Consumer Loans Other Source: NBS Current Accounts Term Deposits Other • Annual housing loans growth as of June 2021 at • Consistently strong retail self-funding ability 11%, consumer loans decreased by 8% • Due to low interest rates term deposits move to • Lending growth with remaining strict regulation current accounts in place (DTI, DSTI, LTV restrictions, rate cap etc.) • Retail loans and deposits well balanced • Consumer loans decline due to lower customer demand and conservative risk appetite

Source: NBS 16 Slovak Banking Market ... key players, mainly international groups & former state-owned banks

25 20 200% 22,9 Total Assets of Main Banks Total Loans of Main Banks 180% (EUR bn) (EUR bn)

Milióny Total: 69,1 EUR bn 20,0 Total: 99,9 EUR bn Millions 15,7 20 18,7 15,0 160% 15 123% 140% 11,6 109% 111% 15 104% 120% 96% 10 90% 84% 100% 10,1 10 7,1 80%

60% 5 4,2 4,8 4,5 5 3,0 40%

1,3 1,1 20% 22,9% 20,1% 18,7% 10,1% 4,8% 4,5% 1,3% 21,8% 22,7% 16,8% 10,2% 6,0% 4,4% 1,6% 0 0 0% SLSP VUB TB CSOB PRIMA 365.bank OTP SLSP VUB TB CSOB PRIMA 365.bank OTP Assets Market Share (%) Loans (brutto) Market Share (%) L/D ratio Source: NBS 30/06/2021 Source: NBS 30/06/2021 • 27 banks in total in the banking market 20 Total Deposits of Main Banks (EUR bn) • Sector dominated by subsidiaries of Milióny 15,6 international banking groups (SLSP - Erste, VUB - 15 Total: 68,0 EUR bn Intesa SanPaolo, TB - Raiffeisen, ČSOB - KBC) 12,8 12,9 • SLSP, VUB and CSOB operated as state owned 10

banks before 1989, privatized in 1999-2001 6,8 • TB established in 1990 as first private bank and 5 quickly grew 3,8 3,6 1,0 23,0% 18,8% 19,0% 10,0% 5,6% 5,3% • Prima banka consistently gaining share over the 1,5% 0 last few years, mainly in retail SLSP VUB TB CSOB PRIMA 365.bank OTP Deposits Market Share (%) Source: NBS 30/06/2021 SLSP - Slovenská Sporiteľňa ,VUB - Všeobecná úverová banka, TB - Tatra banka, CSOB - Československo obchodná banka, 365.bank –ex Poštová banka. OTP - OTP Banka Slovensko, a.s. 17 Presentation Topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

18 Prima banka at a glance … fastest growth in fastest growing retail lending market in EU

Source in Appendix, Retail Loans in this context mean Loans to Individuals 19 Long-Term Plan & Strategy ...clear direction, consistency, execution, grow value

• Consistent execution of a long-term strategy is • Core client base: individual driven by simplicity, transparency and clients, self-employed, small attractiveness of the products and services as and medium enterprises and well as the swiftness and simplicity of related municipalities (2000+ out of 2900) processes • Prima banka significantly strengthened its • Accessibility through country-wide branch and position since 2012 mainly in retail banking, in ATM network, together with strong online which it is the fastest growing bank over the channels to support successful growth period

20 Loans to Individuals – consistent strong growth …mortgages, consumer loans, refinancing, speed, simplicity, quality

3 559 3 224 +545

2 840 +384 +18%

+425 +14% 2 415 +18% 2 016 +399

+20% +478

1 196 +342 980 +216 +29% 733 +247 500 +22% +233 +34% 340 +160 +47% +47% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Fastest growing retail bank

EUR mn, YoY organic growth, acquisition of Sberbank in 2017, portfolio of EUR 478mn as of 31.12.2017 21 Overall well balanced business structure …strong focus on healthy and sustainable long-term growth

4 162 Main Bank 260 tsd. clients 3 819 +399 Strongest growth

3 559 +388 +11% +545 2 674 +11%

+18% +218

+9%

Market share Market share Market share Market share 6,0% 8,4% 6,2% 5,6%

Total Individuals Individuals Total Loans Loans Deposits Deposits

Fastest growing retail bank

EUR mn as of 30.6.2021; Market shares: NBS, Number of main bank clients: Retail Banking Monitor by Go4insight (former GfK) 6/2021 22 Main Bank Customers… …shares rather stable, Prima banka strengthening long-term

Main Bank Main Bank Branches ATMs Share Clients(tsd) 28,9% 1 275 204 647 17,2% 760 129 514 12,6% 560 73 285 9,5% 420 60 217 7,4% 325 103 277 5,9% 260 120 315 4,3% 190 46 141 0,8% 35 51 151 2,5% 110 62 62 Total 89,1% 3 935 848 2 609  Population age 15-79 4,4 mil. in total, 96% use banks  Banks closing branches to reduce costs, mainly the bigger ones  Prima banka with an overall more efficient branch operating model  Prima banka strengthening long-term, branch coverage definitely a factor

Retail Banking Monitor FY 06/2021, Go4Insight (former GfK), retail branch and ATM locations based on websites of the banks July 2021; 365.bank/Poštová banka using also approx. 1.500 post offices 23

Branch network & Online channels… …building a strong competitive advantage

• Branches still critical for customer acquisition, growing role of direct channels, mainly mobile Mobile Application • Customers using both branches & online Penetration (within own customer base)*

channels being the biggest customer group Tatra banka 68% • Prima banka with 3rd largest retail branch and Prima banka 66% ATM network + the only bank with branches in ČSOB 60% each of the 79 Slovak districts VUB 50% SLSP 46% • Strong branch & ATM expansion since 2012 365.bank 43% • One of the Mobile banking application leaders

Retail Banking Monitor 06/2021, Go4Insight (former GfK), *Mobile application usage at least once a month 24 Brand awareness & Customer satisfaction …building a strong competitive advantage

• Need to be known to be considered • Positive referrals supporting new customer • Strongest brand awareness growth acquisition • Not far behind the TOP 3 banks, ahead of a • Consistently high customer satisfaction and number of longer established bank brands loyalty • Highest Communication awareness in 2020 • Strong customer focus of the whole organization (2nd highest in 1st half of 2021) a strategic priority to drive further growth • Highest Customers perception in: “Bank is • Fairness & transparency a key part of the effort growing and opens new branches and ATMs” + “Mortgage Refinancing Value”

2muse report 07/2021, Kantar Slovakia, s.r.o., Customer Satisfaction & Loyality Survey 2020 25 Balance sheet structure …Healthy and well balanced, consistently improving, growing retail share

Assets structure Liabilities structure (EUR mn) (EUR mn) 5 000 4 770 5 000 4 770 4 531 4 531 4 500 214 4 500 378 218 297 364 69 4 000 434 4 000 53 504 504 335 3 500 3 500 322 3 000 3 000 2 500 2 500 3 600 3 269 2 868 2 000 2 000 2 764 1 500 1 500 1 000 1 000 500 130 124 500 523 616 433 488 0 0 1 1 2020 1H 2021 2020 1H 2021 Cash and banks Loans to municipalities Retail loans Due to banks Municipal deposits Retail deposits Non-retail deposits Non-retail loans Securities Other assets Debt securities Other liabilities Equity Total assets • Prima banka holds market share of 6.0% in loans (EUR mn) 5 000 4 770 4 531 and 5.6% in deposits, higher share in retail 4 500 4 179 1 211 4 000 • Healthy funding profile, predominantly 3 553 3 600 1 307 3 500 1 339 customer deposits (80% of liabilities) 3 000 1 186 1 537 • Over 75% of the deposits from retail, which is 2 500 2 037 2 150 1 979 1 900 1 912 2 000 granular, stable and consistently growing 954 3 559 1 500 1 057 3 224 1 180 2 840 1 639 1 401 2 415 • Building a healthy and long-term sustainable 1 000 2 016 500 1 196 business and balance sheet structure, focus on 733 980 340 500 0 lower-risk assets 2012 2013 2014 2015 2016 2017 * 2018 2019 2020 1H 2021 Individual Loans Other Assets • Covered bonds funding (11% of liabilities)

* Total assets of Sberbank as of 31/7/2017: 1 369m EUR (source: Closing Financial Statements of Sberbank Slovensko, a.s. as of 31/7/2017) 26 Organic growth supported by acquisition …improving structure, growing share of retail

Gross customer loans Customer deposits (EUR mn) (EUR mn) 4 500 4 162 4 500 3 977 4 000 4 000 3 819 3 588 603 3 609 753 3 500 3 227 3 500 3 251 2 972 748 3 080 3 088 1 145 3 000 3 000 1 041 813 891 888 892 2 500 956 2 500

2 000 2 000 1 858 1 726 1 682 1 581 3 559 1 518 3 224 1 469 1 466 1 500 1 294 1 346 1 380 537 530 2 840 1 500 508 601 2 568 2 674 2 415 521 499 436 2 360 648 2 192 2 196 1 000 846 2 016 1 000 954 1 196 1 175 1 322 500 980 500 948 1 019 1 031 733 340 500 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021

Individual Loans Other Loans Individual Deposits Other Deposits • Long-term organic growth with significantly • Improving overall structure and mix step by step improving structure and mix • Building balances through main bank customer • Growing share of retail lending, focus on quality relationships and active banking and lower risk to support long-term sustainability • No interest in interest rate tourists inherited • Mortgages the biggest share, contribute to originally from Dexia and also Sberbank building long-term customer relationships • Very good mix of current accounts and mid-term • Other lower risk areas include e.g. municipalities deposits or flat owners associations • Growth supported also by Sberbank acquisition 27 Improving NPL ratio & strong coverage … clean-up of inherited NPLs, business model generating low NPL levels

NPL ratio 13,1% NPL ratio individuals 250 12,9% (EUR mn) 241 14% 60 5,0% 4,4% (EUR mn) 4,3% 4,3% 51 4,5% 12% 50 3,9% 200 3,7% 45 4,0% 3,4% 173 4,2% 4,0% 170 10% 3,2% 3,2% 3,5% 8,1% 40 3,0% 38 150 141 2,6% 33 3,0% 8% 31 2,4% 27 5,9% 30 2,9% 2,5% 5,6% 108 25 5,0% 93 6% 1,9% 100 4,4% 84 22 28 2,4% 2,0% 2,3% 5,3% 102 20 1,3% 5,5% 5,2% 56 1,5% 4,8% 3,0% 51 4% 15 1,0% 4,3% 2,3% 2,4% 0,8% 50 3,6% 1,0% 77 80 10 3,0% 2,8% 2% 2,5% 2,0% 20 17 0,5% 37 34 0 0% 0 0,0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 NPL NPL ex Sberbank NPL ratio NPL ratio - market NPL NPL ex Sberbank NPL ratio NPL ratio - market Source: NBS, PB Source: NBS, PB • NPL ratio below the market despite of high level NPL coverage 300 (EUR mn) 169% 180% 155% of inherited NPLs from Sberbank and Dexia, 160% 250 241 138% mainly corporates 123% 140% 204 116% 113% 110% • Retail NPL ratio also significantly below market 200 173 103% 105% 120% 170 166 96% 173 155 84% 84% 100% 141 150 144 142 • NPL ratio for the portfolio originated by Prima 150 96% 73% 91% 69% 80% 79% 88% 108 banka business model low and well below 77% 76% 90 102 93 100 77 79 80 86 84 60% market levels 40% 50 • Business model and lower risk lending generates 20% 0 0% lower NPLs, conservative approach to loss 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 NPL Risk Provisions NPL coverage NPL coverage - market provisioning, focus on sustainability Source: NBS, PB 28 Strong capital ratios ...improving results, strong capital ratios

• Continuously improving result, retained capital, Net result 24 no dividends paid out over the period (EUR mn) 22,0 19 17,1 17,5 • Substantial cushion of 500bp above Tier1 14,9 14 13,0 requirement 10,5 9 • Strong loan growth concentrated in low risk 5,0 4 weighted retail mortgages (35% RW, Standardised 0,5 109% 43% 47% -23% 3% 20% Approach for CAD) which reduces the burden of -1

-6 assets growth on capital adequacy (5,6) (8,3) • Currently no MREL impact -11 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021

Capital requirements Tier 1 and Capital adequacy ratio Free capital Actual 20% Actual Actual 4,18% 18,68% 18,68% Free capital Free capital 17,52% 5,02% 17,52% 18,12% Tier2R 17,60% 6,52% 18% 17,33% 2,00% AT1R 16,33% 16,44% 1,50% 17,52% 16% 16,98% 16,43% 16,19% 14,42% 14,43% CBR+P2R 13,65% 15,29% 6,50% 14% Tier1R 12,80% CET1R 12,50% 11,00% 12% 12,18% 12,26% P1R 11,74% 4,50% 11,02% 11,30% 10% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 CET1 Tier 1 Total Capital P1R - Pillar 1 requirement P2R - SREP Pillar 2 Requirement CBR - Combined buffer requirement Tier 1 Capital adequacy ratio AT1R - Additional Tier1 requirement 30/06/2021 29 Housing Loans ...fastest growing Prima banka now a key market player

30% 35 SK Housing Loans 32,6 26,8% SK Housing Loans Market Shares (EUR bn) 30,7 12% 25% 23,7% 30 27,9 10,4% 25,2 10% 25 22,4 20% 19,7 8% 20 14,9% 17,0 29,2 15% 13,2% 14,8 27,7 6% 15 12,8 25,3 10,4% 11,3 23,0 20,7 10% 10 18,7 4% 16,2 5,5% 14,2 12,4 5% 5 11,1 2% 1,8% 1,9% 2,2 2,6 3,0 3,4 0 0,2 0,4 0,6 0,8 1,0 1,8 0% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 SLSP VUB TB CSOB PRIMA UNICR OTP 365.bank Source: NBS Prima banka Other banks Market share Prima Source: NBS 30/06/2021 7% • Strong market growth driven by competition SK Housing Loans Interest Rates and low rates 6% 4,9% 5% • Prima banka clearly the fastest growing player, 4,4% 3,8% while sticking to high underwriting standards 4% 4,0% 3,2% (stricter than market ones and also regulatory 3,6% 3% 2,2% requirements) reflected then in well below 2,7% 2,0% 1,7% 2% 2,3% 1,5% market NPL levels 1,3% 1,2% 1,8% 1,7% 1% 1,4% • Prima banka leader in refinancing which still 1,1% 0,9% 0,9% offers additional growth opportunities 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 1H 2021 Source: NBS Outstanding loans New loans

Source: NBS, doesnt includ Building Savings Banks 30 Housing loans a key growth driver …speed, simplicity, transparency, focus on quality and sustainability

Attractive conditions enabled by efficient process & lower losses

• Market leadership in refinancing of mortgage loans from other banks and also standard process very fast and simple, being a key competitive advantage • Focus on diversification, no hunt for big ticket mortgages which represent higher risk, number of customers strategically more important than pure volumes • Going for acceptable risk, easy to prove income and simple purpose, limiting or avoiding more complex or risky income structures and purposes e.g construction • Same rate for everybody, making the sales much easier and more transparent • This enables significant process simplification and automation, each banker can sell a mortgage, no need for specialists only, mortgage easy to sell & easy to buy • Underwriting standards consistently stricter vs. market, also quality requirements for bankers and external partners tougher compared to market standards

31 Presentation topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

32 Cover Pool Overview …100% residential mortgages for individuals, new Covered Bond Program

Cover Pool Structure Covered Bonds Total cover pool volume (EUR mn) 2 212 Total Volume of issues (EUR mn) 500 Residential loan balance (EUR mn) 2 212 Total Volume in program (EUR mn) 1 500 Substitution assets (EUR mn) 0.0 Number of issues 1 Number of loans 50 865 Issue frequency 12-24 months Number of borrowers 46 592 WAL CBs 5.1 years Currency 100% EUR Committed OC --* WA indexed LTV 56.6% Over-collateralization 342.4% WA seasoning (years) 2.5 Covered Bonds Rating (Moody's) Aaa WA remaining term (years) 21.3 Maturity type Soft Bullet 90+ days in arrears loans excluded 0% Currency distribution 100% EUR Interest type 100% Fix Listings LuxSE Principal payment type 100% Annuity * 5% legal minimum applies

• Cover assets composed of housing loans only • All existing mortgage bonds kept separately, not • Cover pool consists purely of Prima banka transferred into new covered bonds register housing loans, inherited ex-Sberbank housing • Old mortgage bonds are in negligible amount of loans are not and will not be included EUR 1.5 mn and maturity in 2021 • Cover Pool rating Aaa by Moody’s

33 Cover Pool Overview …Structure of Cover Pool as per 30.06.2021

Distribution by Remaining Term (volume) Distribution by Seasoning (volume) 1%

<0-5Y> <0-12M> 6% 13%

11% (5-10Y> 27% (12-24M> 34% (10-15Y> 14% (24-36M>

(15-20Y> (36-60M> 19% (20-25Y> >60M

(25-30Y> 24% 22% 30%

Distribution by Volume (volume) Distribution by LTV (volume)

(0 - 25k €> 4% 10% 0% <00_40> 10% 18% (25k € - 50k €> 27% (40_50>

(50k € - 75k €> (50_60> (75k € - 100k €> 20% 28% 14% (60_70> (100k € - 125k €> (70_80> (125k € - 150k €> 24% 18% (80_100> 28%

34 Cover Pool Overview … Country-wide network reflected in homogenous regional distribution

Regional Distribution (volume) Regional Distribution (number of loans)

Bratislava Bratislava 11% 14% 15% 22% Trnava Trnava

12% Nitra Nitra 9% Trenčín 12% Trenčín

Žilina Žilina 8% 10% Banská Bystrica 12% Banská Bystrica 11% Košice Košice 15% 11% Prešov 11% Prešov 10% 17%

Distribution by Loan Purpose (volume) 600 Covered Bonds Issued (mn EUR) 500 0% 500 3% 6% Purchase 24% 400 Remortgage 300 Renovation

200 Construction

Other 100

66% 0 2021 2022 2023 2024 2025 2026

35 Cover Pool Overview ... Cover Pool Development

12/2019 03/2020 06/2020 09/2020 12/2020 03/2021 04/2021 05/2021 06/2021 Cover Pool Total cover pool volume (mn EUR) 1 553 1 632 1 768 1 835 1 906 2 057 2 107 2 156 2 212 Residential loan balance (mn EUR) 1 553 1 632 1 768 1 835 1 906 2 057 2 107 2 156 2 212 Liquidity buffer (liquid assets, mn EUR) 0 0 0 0 0 0 0 0 0 Number of loans 39 036 40 721 43 219 44 589 46 035 48 592 49 333 50 046 50 865 Number of borrowers 35 812 37 257 39 522 40 747 42 033 44 415 45 140 45 819 46 592 Avg loan amount (EUR) 39 765 40 052 40 888 41 122 41 375 42 304 42 691 43 062 43 476 Currency 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR Avg LTV (%) 58,0 58,2 58,3 57,5 57,3 57,0 56,9 56,7 56,6 Avg seasoning (years) 2,3 2,4 2,4 2,5 2,6 2,6 2,5 2,5 2,5 Avg remaining term (years) 21,2 21,2 21,3 21,2 21,2 21,3 21,3 21,3 21,3 Interest type 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix

Covered Bonds Total volume of issues (EUR mn) 500 500 500 500 500 500 500 500 500 Total volume in programme (EUR mn) 1 500 1 500 1 500 1 500 1 500 1 500 1 500 1 500 1 500 Number of issues 1 1 1 1 1 1 1 1 1 WAL of outstanding CBs (years) 6,8 6,5 6,3 6,0 5,8 5,5 5,4 5,3 5,3 Over-collateralisation 210,6% 226,3% 253,6% 267,0% 281,2% 311,3% 321,4% 331,2% 342,4% Committed over-collateralisation -- 1 -- 1 -- 1 -- 1 -- 1 -- 1 -- 1 -- 1 -- 1 Covered bond rating Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Aaa Rating agency Moody's Moody's Moody's Moody's Moody's Moody's Moody's Moody's Moody's Currency distribution 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR 100% EUR Interest type 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix 100% Fix Maturity type Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Soft bullet2 Moody's Rating Ratios Collateral Score 8,1% 8,3% 8,0% 8,0% 8,1% 8,1% 8,2% 8,2% 8,7% Collateral Risk 5,4% 5,6% 5,3% 5,3% 5,4% 5,4% 5,5% 5,5% 5,8% Market Risk 21,1% 20,7% 20,5% 20,7% 20,3% 20,3% 20,5% 20,5% 20,2% Required over-collateralisation 29,0% 28,5% 28,0% 28,0% 27,5% 27,5% 28,0% 28,0% 28,0% TPI Probable Probable Probable Probable Probable Probable Probable Probable Probable TPI leeway Unpublished Unpublished Unpublished Unpublished Unpublished Unpublished Unpublished Unpublished Unpublished

1 5% legal minimum applies 2 All Slovak covered bonds issued before 2018 are hard bullets. Prima banka has not added those old bonds to its programme.

Cover Pool Overview: Moody’s ,Prima banka Slovensko, a.s. – Mortgage Covered Bonds, Performance Overview report 06/2021 36

Presentation Topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

37 Covered Bonds Framework ...Slovak Regulation

Regulated by the Slovak Banking Act since 1.1.2018 Base Assets – new instrument in Slovak legislation • At least 90 % of the cover pool • Requirements regarding the cover pool • Residential mortgage loans provided to consumers1 • Roles and responsibilities of the covered bonds • Residential mortgage loans secured by programme administrator and his deputy mortgaged property located in Slovakia • Requirements for obtaining permission of the • LTV max. 80 % National Bank of Slovakia to perform activities • Max. maturity of 30 years related to the covered bond program Substitute Assets • Stress testing (at least once a year) • Max. 10 % of the cover pool • Reporting to the National Bank of Slovakia (both • Cash or deposits with NBS, ECB, EU member by bank and by the covered bond programme state central bank, government bonds in line administrator) with CRR Liquid Assets • Over-collateralization of min. 5 % • Required to cover the maximum liquidity gap • Transferability of the whole covered bonds within the CB program over next 180 days program • Tier 1 and Tier 2A assets2 • Special supervision of National bank of Slovakia • Value of liquid assets is part of coverage ratio • Compliant with most requirements of the Hedging Derivatives harmonized EU directive • To mitigate currency or interest risk of CB

1 Regulated by separate acts and notices ; 2Articles 10 and 11 of Regulation (EU) 2015/61 Covered Bonds Framework ...Insolvency Regime

• New rules set in the Insolvency Act Cascade of steps - without strict timeline: • The mortgaged property registered in the • Soft bullet structure - maturity can be extended cover pool is not part of the bankruptcy by max 12/24 months in case of transfer general estate • Transfer of whole CB program – is expected to be used mostly in special circumstances where • No automatic acceleration the bank issuing CBs is subject to involuntary • Dual recourse: covered bonds holders have administration or bankruptcy proceedings recourse against both • Sale of individual assets (loans) to satisfy • Covered bonds estate and covered bonds claims • General estate of the Issuer • Failing all above, ceasing of operation and acceleration of covered bonds and mortgage • General insolvency trustee operates the loans covered bonds programme under National Bank • Involuntary administration or trustee of Slovakia supervision separately from the • The trustee operates the CB programme general estate of the issuer separately from the general estate of the • Testing with due care whether operation will not Issuer damage Covered Bonds Holders (compared • The trustee considers the level of with liquidation scenario) satisfaction of the CB holder in all scenarios and acts with due professional care for the benefit of all CB holders Covered Bonds Framework ...Additional Regulation

Bond Act Regulatory overview • Basic legal regulation of bonds • The covered bond rating matters from • Does not contain special regulation of covered regulatory perspective bonds • Regulatory implications of different rating levels Securities Act for a typical Slovak EUR covered bond benchmark backed by mortgages • Basic legal regulation of securities (all types of securities, not just bonds) • Slovak covered bonds tick the same boxes as those in more established jurisdictions • Security is a value-for-money record in a statutory form with which certain rights are linked, in particular, the right to claim certain property or to exercise certain rights against designated persons / subjects • Contains regulation on securities contracts • Contains legislation on securing obligations by securities Covered Bonds Framework ...Regulatory Overview

UCITS CRR stand. LCR ECB Solvency II EEA CBPP3 OECD Art. 52(4) Risk weight level repo Slovak CB Triple A  10%  1(B)     Double A  10%  1(B)     Single A  20% x 2A    

Foreign CB GER, FRA, NED  10%  1(B)     POL, NOR  10%  1(B)   x  CAN x 20% x 2A  x x  AUS, NZD x 20% x 2A x x x  SGP x 20% x 2A x x x x

Information apply to typical benchmark deals and exceptions may occur 41

Covered Bonds Framework ...Across Europe

Slovakia Austria Germany France Hypothekarisch Hypothekenpfandbriefe OHs Issuer Universal credit institution Universal credit institution Universal credit institution Special credit institution (SFH) Ordinary cover assets Residential mortgage loans Mortgage loans Mortgage loans Residential mortgage loans EEA, Switzerland, USA, EEA and other top rated Geographical scope Slovakia EEA, Switzerland Canada, Japan, Australia, countries New Zealand, Singapore 80% based on market value; Max LTV 80% 60% 60% 100% state-guaranteed RE loans Limit for substitute cover 15% of the amount of Up to 20% of Covered Up to 15% of Covered Bonds Up to 10% of the cover pool assets issued bonds Bonds outstanding volume outstanding volume

Hard bullet, but recently Most OHs have been issued Maturity structure Soft bullet SoftHard bullet bullet also soft bullet with soft bullet structure

Issuer to cover the max; „Natural“ matching – Max. liquidity gap over the 180 day liquidity coverage; use liquidity gap over the next Mitigation of risks hedging derivatives might next 180 day must be of derivative hedging 180 day; hedging derivatives be registered in the pool covered; HD possible instruments (HD) possible 2% on NPV and 2% on Overcollateralization Min. 5% 2% on normal basis 5% on nominal basis stressed NPV basis Independent cover pool Yes Yes Yes Yes monitor Art. 52 (4) UCITS Yes Yes Yes Yes compliant Art. 129 CRR compliant Yes Yes Yes Yes

42 Presentation Topics

1. Prima banka at glance 2. Slovak Republic 3. Slovak Banking Market 4. Prima banka 5. Cover Pool 6. Covered Bonds Framework 7. Appendix

43 Prima banka … central european private equity group as a major shareholder

Shareholder structure 30.06.2021 Penta Investments Group Limited (Jersey) Ownership: 100% • Penta Investment (99,55%) Penta Investments Limited (Jersey)

• Municipalities (0,27%) 99,9995% • Natural persons (0,15%) Penta Investments • Other legal entities (0,03%) Limited (Cyprus) 99,55%

Prima banka Slovensko, a.s.

44 Sources, additional info & contacts

• Prima banka financials: Financial Statements 2012 – 2021, Annual Reports 2012 – 2020 • Slovak market and Slovak Banks financials and market shares: NBS • Prima banka number of retail branches and ATMs: www.primabanka.sk , July 2021 • Slovak banks number of retail branch and ATM locations: websites of the respective banks, July 2021 • Customer Mobile application penetration: Go4insight s.r.o.(formerGfK), June 2021, Retail Banking Monitor • Customer Satisfaction: Kantar Slovakia, s.r.o., Customer Satisfaction & Loyality Survey 2020 • Brand and Communication awareness: 2muse, s.r.o., Marcom - continuous measurement of communication performance and bank brands, July 2021 • Number of Main bank clients: Major bank shares are based on Retail Banking Monitor (RBM) conducted by Go4insight s.r.o. (former GfK) annually on a sample of 6,000 respondents in 6 waves representative of the population of Slovakia aged 15-79 years, June 2021 • Cover Pool Overview: Moody’s ,Prima banka Slovensko, a.s. – Mortgage Covered Bonds, Performance Overview report 06/2021

• For further information: https://www.primabanka.sk//o-banke/pre-investorov/pre-investorov?loc=en • Contact: Erik Chudy, [email protected], +421914 343 345

45 Disclaimer

The information and the opinions in this presentation have been prepared by Prima banka Slovensko, a.s. (Prima banka) solely for general information purposes in connection with a proposed offering of covered bonds issued by Prima banka (the Bonds). This presentation and its contents are intended for information purposes only and may not be reproduced in any form or further distributed to any other person or published, in whole or in part, for any purpose. Failure to comply with this restriction may constitute a violation of applicable securities laws. Penta Investments Limited or other members of Penta Group have not prepared or approved this document and have no liability in connection with this document or information therein or the Bonds.

This presentation shall not constitute an offer to sell, or the solicitation of an offer to purchase or otherwise acquire the Bonds or to enter into any legally binding relationship with Prima banka. This presentation is not for distribution, nor does it constitute an offer of securities in any jurisdiction or an inducement to enter into investment activity or any advice or recommendation with respect to the Bonds. Specifically, the Bonds have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the US Securities Act), or the securities laws of any state of the United States or other jurisdiction. The Bonds may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of U.S. Persons (as defined in Regulation S under the US Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirement of the USD Securities Act.

This presentation is being directed only at persons having professional experience in matters relating to investments in financial instruments. This presentation is not for distribution to retail customers (non-professional clients).

Any investment decision concerning the Bonds should be made only on the basis of evaluation by each prospective investor of the base prospectus, all financial and other information incorporated therein by reference, supplements to the base prospectus (if any) and relevant final terms of the Bonds, each as published on the website of Prima banka: www.primabanka.sk.

Some information in this presentation has been obtained or is based on the publicly available sources. Information has been reproduced carefully, but has not been independently reviewed and Prima banka cannot guarantee accuracy, adequacy, correctness or completeness of such information. Accordingly, undue reliance should not be placed on any such information contained in this presentation. All information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.