ANNUAL REPORT 2016

Home Credit a.s.

CONTENTS

1. INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF HOME CREDIT A.S. 3 2. INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS 7 3. DESCRIPTION OF THE COMPANY 10 Equity 10 Principal activities 10 4. PRODUCTS 11 All-purpose cash loans 11 Consolidations 11 Special-purpose consumer loans 11 Revolving loans (revolving and credit cards) 11 Car loans 12 5. COMPANY BODIES AND TOP MANAGEMENT 12 Board of directors as at 31 December 2016 12 Supervisory board as at 31 December 2016 13 Conflict of interests at the level of governing, managerial and supervisory bodies 14 6. RISK MANAGEMENT 14 Credit risk 14 Liquidity risk 15 Market risk 15 Interest rate risk 15 Currency risk 15 Operational risk 15 7. FINANCIAL PERFORMANCE 16 8. REMUNERATION PROVIDED TO BOARD MEMBERS 16 9. FEES PAYABLE TO STATUTORY AUDITORS 16 10. EMPLOYEE RELATIONS 16 11. RESEARCH AND DEVELOPMENT 16 12. ENVIRONMENTAL IMPACT 17 13. INTERNATIONAL BRANCHES 17 14. OUTLOOK FOR NEXT PERIOD 17 15. CORPORATE SOCIAL RESPONSIBILITY 18 16. LITIGATIONS AND ARBITRATIONS 18 17. CONTACT INFORMATION 19 18. RESPONSIBILITY FOR THE ANNUAL REPORT 20 19. APPENDICES 21

2016 Annual Report, Home Credit a.s. 2

2. INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS

Ladies and Gentlemen, In 2016 we successfully completed several projects which made it possible to launch public communication on the change that had been underway at Home Credit for some time. Our mission is to lend money to people, helping them to purchase and subsequently repay. Our aim in all we do is that money we lend makes everyone’s life story better. We are thus changing from a traditional instalment provider financing goods such as electronics or furniture into a company financing people’s stories. The key moment of 2016 was a launch of the company’s repositioning: we presented to the public not just our new logo, but also a new communication campaign and products. In the autumn, we marketed the “Šikovná karta” card with a wide range of useful assistance services that actually help when in trouble. For cash loans, we were the first to introduce to the Czech market the revolutionary “Svobodné splácení” benefit where people may themselves reduce the instalment amount as needed, without having to notify us.

In 2016 we also started monitoring how our customers feel during the time they stay with Home Credit. This is important to us when designing and redesigning products and services. Innovations also remain vital to us: in the course of the year, we made a number of small changes that help us fulfil the company’s long-term strategy.

Czech economy in 2016 As previously mentioned, 2016 was characterised by a positive economic climate. In terms of GDP, the Czech economy did really well. Consumers’ financial situation – and, consequently, their overall confidence in the domestic economy – improved. Household consumption reflected very positively on GDP growth, being one of the drivers of economic growth. The consumption of durable goods grew most significantly (note the year-on-year growth of 6.4%, 9.2% and 6.4% in the first, second and third quarter of the year); contrariwise, a slight slow-down of growth was observed for non-durable goods. The situation in the job market was very good, with an unprecedented 5.27 million people employed in the third quarter of the year. Unemployment continued to subside but at a slower rate than in 2015. Employers were increasingly encountering a lack of labour and were forced to offer higher nominal wages to attract suitable employees. In December 2016, the price levels grew by 2% year-on-year, meaning that, after four years, inflation achieved the level targeted by the Czech National Bank; this return to the 2% level occurred sooner than expected according to CNB forecasts. Although the economic situation is very positive, we are aware of potential risks. The Ministry of Finance of the predicts that the economic growth rate will diminish in 2017. That will be accompanied by a number of side effects. In addition, there are various geopolitical risks that can have an impact on the entire world economy.

2016 Annual Report, Home Credit a.s. 7 Business overview In 2016 Home Credit provided loans totalling CZK 11.5 billion, up 11% from the previous year. Gradually, selected innovation projects were launched, responding to the changing shopping habits of the population, making shopping easier, or otherwise helping to finance purchases. The following products from our portfolio continued to play a key role for us during the year: all-purpose cash loans, consolidations and credit cards. All-purpose cash loans have been a mainstay of our portfolio for many years. In November 2016 we successfully launched in the market a cash loan with the revolutionary “Svobodné splácení” benefit. We were the first to offer the possibility to reduce the instalment amount by one-half for up to half of the scheduled instalments, without prior notification or having to file an application or to incur additional expenses. We also continued to reward our clients by refunding a part of interest to those who pay in a due and timely manner. As part of the reward for due repayment we also launched a new benefit: a loan with a 9.9% interest. Just as important a part of our portfolio are credit cards, which we systematically develop and improve. Increasing drawn amounts confirm that clients welcome these modifications. In 2016, credit cards underwent a fundamental change, while we also replaced those approaching the end of their life cycle. In November 2016 we introduced the Šikovná karta card, offering the widest range of assistance services in the Czech market. The new Home Credit credit card offers, among other things, three ATM cash withdrawals free of charge, an interest-free period of 51 days, a possibility to repay the card using direct debit, a possibility of cash transfer from the card to a bank account, and a postponement of instalments. Loan consolidation continues to be a hot topic in consumer finance, exhibiting stable growth. Home Credit provides its clients with the option of refinancing a wide range of consumer loans, which we consider a significant competitive advantage of the Company. For Home Credit, 2016 was a year of innovations and significant improvements in the Company’s online presence. As we are aware that a large portion of the population uses the internet on a daily basis, we devote considerable effort to developing Finance Manager, our online application. In 2016 the application underwent a number of additional adjustments and improvements, including the possibility to view the card account statement, to set the method of sending monthly statements, to set a SMS info service, etc. Our long-term strategy is based on improving and developing customer experience. We make every effort to ensure that clients return to us and that we are their number one choice when they need assistance with their financial situation. The primary objective of our customer experience programme is to improve customers’ experience with Home Credit services by changing processes and by introducing new processes and products. The Company adjusts processes based on customer satisfaction survey results, so that the client can enjoy services of the highest quality possible. In 2016 we launched a range of successful campaigns focusing primarily on benefits for clients who make due and timely instalment payments. Such clients could qualify for various types of financial benefits. In particular, there was a campaign involving a reimbursement of a quarter of interest paid as a reward for due repayment. The company’s key business partners include Tesco Stores ČR a.s. (“Tesco Stores”) and DATART INTERNATIONAL, a.s. (“DATART”). Together with Tesco Stores we developed the Clubcard Premium Plus credit card, and with DATART, a new version of the DATART credit card. For Home Credit, as a company open to new opportunities and ideas, 2016 was a year full of innovative projects. During the year, we continued to develop the Try Before You Buy (Kup Najisto), Japanese Loan (Japonská půjčka) projects and we also came up with the new Koupito a Zaslouzimsi.cz projects. We are confident that these projects will be successful in the following year as well.

2016 Annual Report, Home Credit a.s. 8

3. DESCRIPTION OF THE COMPANY

The Company was formed on 3 January 2005 as a result of the demerger of Home Credit Finance a.s., carried out in order to separate activities related to managing investments in foreign subsidiaries from the consumer finance business in the Czech Republic. This was recorded in the Commercial Register on 1 October 2005. The Company is part of the Home Credit group, which is one of the leading providers of consumer finance in Central and and . In selected countries, it also successfully provides and develops retail banking services. The holding company of the Home Credit group is Home Credit B.V., with its registered office at Strawinskylaan 933, 1077 XX , . Home Credit a.s. is controlled by that holding company, which is its sole shareholder. The ultimate holding company of the PPF group, which includes the Home Credit group, is PPF Group N.V. (Netherlands). Home Credit is one of the leading providers of consumer finance in the Czech Republic. The Company offers a wide range of loan products. In 2016 Home Credit provided its clients with loans totalling CZK 11.5 billion.

Equity The Company’s equity as at 31 December 2016 amounts to TCZK 1,134,811 and comprises:

Registered capital: The Company’s registered capital totals TCZK 300,000 and consists of 300 registered ordinary shares in certificated form at CZK 1,000,000 per share. All shares are paid up in full. All shares confer the same rights and responsibilities and an equal share in equity. The Company is not aware of any restrictions imposed on the transferability of shares or on voting rights, or of any special rights associated with owning the shares. Nor is the Company aware of any agreements between shareholders that could obstruct the transferability of shares or voting rights.

Other capital contributions: Other capital contributions total TCZK 344,068 and comprise the Company’s share of the other capital contributions of its legal predecessor, Home Credit Finance a.s., based on the terms of the demerger.

Retained profits: Retained profits total TCZK 490,743 and comprise the Company’s accumulated profits reduced by dividends paid and allocations to funds pursuant to the Act on Companies and Cooperatives/the Company’s articles of association.

Principal activities The Company’s principal activity is the provision of consumer finance to individuals.

2016 Annual Report, Home Credit a.s. 10 4. PRODUCTS

All-purpose cash loans Home Credit has been offering all-purpose cash loans on a large scale since 2003. They are currently represented by the Telephone Loan and Online Loan products. Loans are provided via money transfers to clients’ current accounts or via cash payments at the post office. Agreements can be signed either physically or electronically by using a so-called SMS signature. The latter option reduces the loan processing time to just several minutes. Thanks to their simple parameters, all-purpose loans are ideal for acquisition of new clients and can be used as an alternative product as part of cross-selling programmes offered to Home Credit’s existing customer base. Potential clients are addressed through a wide communication mix. The Company expects these loans to continue to grow in the years to come.

Consolidations These are all-purpose cash loans arising from early repayment of old loans. They allow clients to significantly reduce their monthly payments and free up more of their family budget. The old loans from other companies are often provided under less favourable terms, e.g. at higher interest rates. The new consolidation loan can offer a longer term of repayment and/or remove certain duplicate services accompanying individual agreements. This makes consolidation loans financially more advantageous for clients. Home Credit takes care of virtually all paperwork related to termination of loans with other institutions so as to minimise the administrative burden for the client. We expect these products to continue to develop in future years.

Special-purpose consumer loans Consumer loans are Home Credit’s traditional product. In the Czech Republic, this type of loan can be obtained at numerous points of sales of our partners, including large retail chains, small independent vendors, travel agents, e-shops, etc. Home Credit signs an agent agreement with these business partners, who then conclude, on behalf of the Company, draft loan agreements with individuals (clients). Consumer loans are primarily used to finance black goods (LED TVs), white goods (refrigerators, washing machines, dishwashers), furniture, computers and laptops, gardening equipment, smartphones and tablets.

Revolving loans (revolving and credit cards) A revolving loan is a long-term, repeatable and renewable loan. The recipient of a revolving loan is provided with an agreed credit limit. Each drawing reduces the disposable balance that the customer can still use. Conversely, each repayment increases the disposable balance. The Company offers this product mainly to clients with good payment history as well as to new clients coming to points of sale. This facility makes additional purchases easier, as it is no longer necessary to conclude another agreement. In 2006 revolving cards were joined by credit cards, whose distinctive features include the so-called grace period, which enables clients to use cash for up to 51 days without having to pay interest on it.

2016 Annual Report, Home Credit a.s. 11 The Premia credit card is Home Credit’s flagship, offering a very interesting loyalty programme in addition to the usual credit card features. In 2010 Tesco Stores ČR a.s. became another important distribution channel for credit cards. In 2016 we jointly introduced the Clubcard Premium Plus credit card. Card products are central to our loan portfolios and will continue to be developed in the years to come.

Car loans Starting in October 2008 the Company has been financing purchases of vehicles, particularly used cars and utility vehicles. In 2009 the distribution network significantly expanded, covering all regions of the Czech Republic. At present, the special-purpose secured Ideal Credit car loan can be obtained at more than 400 points of sale. In cooperation with several insurance companies operating in the Czech market, we offer motor hull insurance and motor third-party liability insurance as supplementary products.

5. COMPANY BODIES AND TOP MANAGEMENT

Board of directors as at 31 December 2016 David Bystrzycki, chairman of the board of directors He graduated from the Faculty of Mathematics and Physics of Charles University, and started his career as market research manager at Phillip Morris. Before joining the Home Credit group, he worked as manager at GE Money Bank. He joined the Home Credit group in 2006, focusing on the formulation and implementation of customer relationship management strategies in countries where the group operates. At the Company, he started out as customer relationship management director and, since 2010, has been managing all business activities of Home Credit in the Czech Republic and . He has been a member of the Company’s board of directors since November 2010. As of May 2011 he is the chairman of the board of directors of, and generally manages, Home Credit and Home Credit Slovakia. He is interested in everything related to FinTech and innovations. Since August 2016 he is a statutory representative of Zonky s.r.o. In addition, he is the chairman of the board of directors of Společnost pro informační databáze, a.s., and a member of the supervisory boards of the following Dutch-based companies: AB 2 B.V., AB 4 B.V.and AB 7 B.V.

Luděk Jírů, member of the board of directors He is in charge of Home Credit’s acquisition activities in the Czech Republic and Slovakia, including an independent sales network as well as large business partners. Before joining the Home Credit group in 2006, he worked as sales manager at GE Money Multiservis, s.r.o. Previously, he had worked at Philips in the small home appliances division, where he was responsible for activities in the Czech Republic and Central and Eastern Europe. As of May 2011 he is a member of the board of directors, and generally manages the business activities, of Home Credit and Home Credit Slovakia.

2016 Annual Report, Home Credit a.s. 12 Zdeněk Šperka, member of the board of directors After graduating from the University of Economics in Prague, he spent three years working at KPMG Česká republika, s.r.o., where he specialised in audits of financial institutions. In 2003 he started his career with the PPF group as finance manager at Home Credit International a.s. In his next role – as finance manager for CEE and Asia – he was primarily in charge of internal and external reporting and planning for HC Group. In January 2011 he transferred to Brusson, a company where he managed the controlling department. He as chiefly responsible for business and financial plans, internal and external reporting, negotiations with banks and other financial companies. As of July 2011 he works as chief finance officer for Home Credit and Home Credit Slovakia, a.s. In addition, he is a member of the board of directors of Home Credit Slovakia, a.s.

Supervisory board as at 31 December 2016

Pavel Rozehnal, chairman of the supervisory board Born in 1977, he graduated from the Faculty of Law, Charles University in Prague. In the period of 2003 – 2007 he worked – first as a junior lawyer and then as a lawyer – at Linklaters, v.o.s., an international law firm, where he provided legal advice on mergers and acquisitions, commercial law and arbitrations. In May 2007 he became the chief legal officer and a member of the executive committee of the Home Credit group. Mr Rozehnal is in charge of legal risk management and compliance in the Home Credit group. Within the Home Credit group, he is also the chairman of the board of directors of Home Credit International a.s., the chairman of the supervisory board of Air Bank a.s., the chairman of the supervisory board of SB JSC Bank Home Credit in and is a member of statutory bodies of other entities within the Home Credit group.

Miroslav Zborovský, member of the supervisory board Born in 1972, he joined Home Credit in 1999, starting out as an officer in the approval department. He then became the head of the department and, in 2000, the director of the agreement processing department. In 2005 he became the director of the client centre and subsequently the director of the customer care division. He is in charge of Home Credit’s activities in this area in the Czech Republic and Slovakia. At the call centre, he launched, among other things, the telemarketing sales channel and the sale of cash loans using inbound calls. As of October 2010 he is a member of the supervisory board of Home Credit. In addition, he is a member of the supervisory board of Home Credit Slovakia, a.s.

David Minol, member of the superisory board Born in 1975, he graduated from the University of Economics, Prague. Between 1998 and 2003, he worked as an auditor in KPMG Česká republika Audit, spol s.r.o. and was in charge of audit management and advisory services to banks and financial institutions. In May 2003, Mr. Minol became Financial Manager at the PPF group. Since 2006, his name has been associated with the Chinese entity of the Home Credit group, where he served as Chief Financial Officer, later in 2012 taking over the financial management of the Home Credit entities in Asia. In the last three years, he served as Managing Director of HC Consumer Finance , Inc., being in charge of the management of the company. He currently holds the position of Regional Director, overseeing the entities of the Home Credit group in the Czech Republic, Slovakia and . He is also a member of the supervisory board of Home Credit a.s. and Home Credit Slovakia, a.s.

2016 Annual Report, Home Credit a.s. 13 Conflict of interests at the level of governing, managerial and supervisory bodies The Company confirms that the statutory restrictions specified in Sections 441 and 451 of Act No. 90/2012 Coll., on Companies and Cooperatives (the Act on Corporations), which relate to competition between board members and the Company, apply to members of the Company’s board of directors and supervisory board. Members of the board of directors and supervisory board shall not: conduct business relating to the Company’s principal activities, including for the benefit of other parties, or broker the Company’s transactions for other parties; participate, as a member with unlimited liability or as the controlling entity of another entity with the same or similar principal activities, in the business of another corporation; be a member of the statutory body of another entity with the same or similar principal activities or a person in a similar position, unless this involves a group. The Company confirms that it is not aware of any potential conflict of interests between the responsibilities of the Company’s board members to the Company and their private interests or other responsibilities.

6. RISK MANAGEMENT

The Company’s board of directors is responsible for managing the Company’s risks. The risk management methods applied by the Company are designed to identify and analyse risks to which the Company is exposed, set acceptable limits and controls for those risks, and monitor risks and compliance with the set limits. Risk management methods and their components are regularly reviewed to ensure they reflect changes in market conditions and in the products and services provided. Through training, management standards and standardised procedures, the Company creates a functional and effective control environment in which all employees understand their roles and responsibilities.

Credit risk Credit risk is the risk of financial losses arising from the failure by debtors or other counterparties to meet their obligations to the Company. The Company’s exposure to credit risk results primarily from the provision of consumer financing to clients, which is the Company’s principal activity. The Company classifies client loans into several groups, with consumer loans, revolving loans, cash loans and car loans being significant. The consumer loan portfolio does not contain any individually significant items, as it is composed of a large number of loans with relatively small amounts due. The Company’s board of directors is responsible for managing credit risk. The risk division, which reports to the Company’s board of directors, is responsible for monitoring the Company’s credit risk exposure, including:

• developing credit risk management methods in cooperation with the sales function; • establishing authorisation procedures for approving and renewing credit limits; • monitoring and evaluating credit risk; • setting limits for credit risk concentrations; • developing and administering risk ratings used to assess credit risk; • monitoring the sales function’s compliance with agreed limits; • providing guidance, support and professional skills to the sales function to ensure that the Company has sophisticated credit risk management methods in place.

2016 Annual Report, Home Credit a.s. 14 Liquidity risk Liquidity risk is the risk that the Company will be unable to meet the obligations arising from its financial liabilities. The Company manages liquidity risk by ensuring that it has sufficient liquidity to meet all its liabilities when due, under both normal and extraordinary conditions, without incurring significant losses or risking damage to the Company’s reputation. The finance division collects information about the due dates of individual financial assets and liabilities and about planned cash flows arising from future transactions. To ensure sufficient liquidity, the Company maintains a portfolio of liquid assets. The Company’s liquidity position is monitored on a daily basis and regularly tested under various scenarios taking into account both normal and adverse market conditions. The Company uses various means of financing, including bank loans, securities issues, regular sales of receivables, intra-group loans and deposits from shareholders. It is shareholders’ support that is one of the key aspects of liquidity management, as it provides extra flexibility and reduces dependency on other sources, thus generally reducing finance costs.

Market risk Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates, will affect the Company’s income or the value of its financial instruments. The objective of market risk management is to keep market risk exposures within acceptable limits.

Interest rate risk Interest rate risk is the risk of losses arising from fluctuations in future cash flows or fair values of financial instruments caused by changes in market interest rates. The risk of changes in interest rates is managed mainly by monitoring differences in interest rates and by having in place approved limits for individual periods of re-fixing interest rates. The finance division is responsible for compliance with these limits.

Currency risk The Company was not exposed to significant currency risks.

Operational risk Operational risk is the risk of direct or indirect losses arising from the Company’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks, e.g. from legislative and statutory requirements and generally accepted corporate governance standards. Operational risks arise in all areas of the Company’s activity and are faced by all entities. The Company’s objective is to manage these risks so as to maintain balance between preventing financial losses and damage to the Company’s reputation on the one hand and ensuring cost effectiveness and eliminating control procedures restricting initiative and creativity on the other. The primary responsibility for developing and implementing controls related to operational risk rests with the Company’s top management.

2016 Annual Report, Home Credit a.s. 15 7. FINANCIAL PERFORMANCE

Business results 2016 2015 Loans provided TCZK 11,501,190 10,320,638 Number of points of sale # 2,673 3,658 Number of employees # 696 727

Under IFRS, the Company generated in 2016 a net profit of MCZK 134 (2015: MCZK 507), what represents a decrease of 74% compared with 2015.

For detailed information on the Company’s financial performance, see its financial statements, which are enclosed with this annual report.

8. REMUNERATION PROVIDED TO BOARD MEMBERS

TCZK Board of directors Supervisory board 2016 2015 2016 2015 Number of members 3 3 3 3 Salaries 31,581 26,447 2,331 2,252

9. FEES PAYABLE TO STATUTORY AUDITORS

TCZK 2016 2015 Statutory audit 3,240 3,289 Other assurance services 271 270 Total 3,511 3,559

10. EMPLOYEE RELATIONS

The Company devotes considerable attention to employee development and motivation in order to be an attractive employer in the labour market. It uses modern HR management methods, including periodic employee satisfaction surveys, to design and innovate its motivational programmes. In addition, the Company provides its employees with a wide selection of financial and non-financial benefits. Employee training and professional development, including programmes aimed at increasing employees’ qualifications and developing corporate culture, are one of the Company’s priorities.

11. RESEARCH AND DEVELOPMENT

In 2016 the Company conducted no research and development activity.

2016 Annual Report, Home Credit a.s. 16 12. ENVIRONMENTAL IMPACT

As the Company’s principal activity is the provision of financial services, its operation does not directly affect the environment.

13. INTERNATIONAL BRANCHES

The Company has not had any international branches.

14. OUTLOOK FOR NEXT PERIOD

The main medium-term goal of the Company continues to maintain a leading position in the consumer finance market in the Czech Republic. Our competitors include not only prestigious non-bank institutions but also banks offering retail loans. We are their equal competitor which has ambitions to increase its market share.

The Company aims to maintain and innovate its product portfolio and to develop the existing customer base. It will also focus on acquisition of new clients, both through the product offer of its retail partners and by strong promotion of its cash loan and card products.

Our strategic business plans will continue to be supported by the ongoing innovation and automation of management and operating procedures and by the effort to simplify matters as much as possible from the perspective of our clients. Customer satisfaction is and will remain one of the key performance indicators.

Our financial performance will continue to be affected by the situation in the highly competitive consumer finance market.

We plan to grow and to further boost profitability by strengthening our position in the consumer finance, cash loan and card segments while rigorously managing risks and operating expenses.

We are expanding our offer of quality and affordable loan products to segments in which Home Credit has so far had little or no presence. The Company is constantly seeking new opportunities across and outside the consumer finance sector. Innovations, one of the pillars on which the Company is built, continuously generate new products and ways to interact with customers.

2016 Annual Report, Home Credit a.s. 17 15. CORPORATE SOCIAL RESPONSIBILITY

Summer Shakespeare Festival Each year the Company supports the Summer Shakespeare Festival, a major project of Czech theatre and culture. The general partner of this cultural event, which takes place in Prague, Brno, Ostrava and Bratislava, is the international financial group PPF. Home Credit is one of the main partners.

The MALINA programme Malina (in English: raspberry) is a CSR programme for Home Credit employees. As part of their teams, they jointly support – financially or otherwise – selected charitable and community projects. They are actively involved in selecting entities and how to assist them.

In 2016, Home Credit employees helped with processing of the wood from felled trees and with painting of rooms in the Domov bez zámku, a home for the handicapped and assisted living in Náměšť nad Oslavou, donated blood in a Brno teaching hospital, and collected hundreds of kilograms of bottle tops for seven-year old Michaela suffering from an unknown congenital disease similar to cerebral palsy and connected with central muscular hypotonia. We also did sports for a good cause: proceeds from the entrance and start fees of a race were donated to artificial valve research for children and young people diagnosed with Tetralogy of Fallot heart condition. In December we organised our traditional Christmas market and raised over 60 thousand Czech crowns of proceeds from employees’ products traditionally supplemented by a subsidy from the Malina fund; we used this amount to support the Debra Association, whose mission is to improve the quality of life of people suffering from butterfly skin disease.

In 2016, Home Credit employees donated CZK 155,000 and 939 hours of their time to charity.

Liberec White Tigers Supporting the top league of Czech ice hockey, Home Credit is the general partner of the Liberec White Tigers hockey team, one of the major sports clubs.

16. LITIGATIONS AND ARBITRATIONS

As at the date of preparation of this annual report, the Company is a party to administrative proceedings before the Czech Trade Inspection Authority in relation to the calculation of the annual percentage rate (APR) for consumer car loans. The Company is convinced that its method of calculating the APR, which is based on whether and how expenses related to loan provision should be included in the calculation, is appropriate, and will use all available legal means to counter any negative rulings in this matter.

2016 Annual Report, Home Credit a.s. 18 17. CONTACT INFORMATION

Home Credit a.s. Nové sady 996/25, Staré Brno 602 00 Brno Czech Republic

Tel.: +420 541 598 111 Email: [email protected]

Internet: www.homecredit.cz

Customer care number: +420 840 155 155

Contact person Communication: Zuzana Bienvenu, tel.: +420 541 598 461

2016 Annual Report, Home Credit a.s. 19

19. APPENDICES

The annual report includes the following standalone appendices:

1. Report of the board of directors of Home Credit a.s. on the Company’s business activities and on the state of its assets for 2016

2. Report on relations between the controlling entity and the controlled entity and between the controlled entity and entities controlled by the same controlling entity for 2016

3. Financial statements for the year ended 31 December 2016

2016 Annual Report, Home Credit a.s. 21

Report of the board of directors of Home Credit a.s. on the Company’s business activities and on the state of its assets for 2016

Stability of the financial sector

Despite the slower growth of the gross domestic product (GDP), the past year was very good for the Czech economy. The year-on-year growth in GDP averaged 2.5% in the first to the third quarter of the year (at the time of preparing the annual report, only data for the first to the third quarter of 2016 were available). The most pronounced slow-down of economic growth occurred in the third quarter of the year as the GDP grew by 1.9%. The gradual slowdown of the growth of the Czech economy (note the year-on-year growth in GDP at 3% and 2.6% in the first and second quarter) may be attributed to a high comparative base in 2015, subsiding effects of drawing of EU funds, and the approximation to the country’s economic potential. Consumption of households reflected very positively on GDP growth, being one of the drivers of economic growth. The consumption of durable goods grew most significantly (note the year-on-year growth of 6.4%, 9.2% and 6.4% in the first, second and third quarter of the year); contrariwise, a slight slowdown of growth was observed for non-durable goods. Shopping appetite of households has also been confirmed by retail sales data, which grew by 5.5% in the first to third quarter. Traditionally, the sale of non-food products accounted for the biggest share of retail growth, with sales growing by 6.8% in this segment. Higher sales were reported for instance by vendors of electric appliances, electronics, furniture and other household products. Sales were growing in food, leisure or culture segments too, and favourable prices of fuel contributed to higher sales of petrol stations. Compared to other EU countries, the rate of retail sales growth was the fifth highest. Higher household consumption was driven mainly by growing earnings, together with positive expectations. According to the Czech Statistical Office, the volume of wages and salaries paid grew by 5.7% year-on-year (6.0%, 5.4% and 5.7% in the first, second and third quarter respectively), while its dynamics increased compared to 2015. In December, the average nominal wage grew by 4.5% year-on-year and the real wage by 4%. The situation in the job market was very good, with an unprecedented 5.27 million people employed in the third quarter of the year. Unemployment continued to subside, although at a slower rate than in 2015. Employers were increasingly encountering lack of labour and were forced to offer higher nominal wages to attract suitable employees. In December 2016, price levels grew by 2% year-on-year, meaning that, after four years, inflation achieved the level targeted by the Czech National Bank; this return to the 2% level occurred sooner than expected according to CNB forecasts.

Assessment of the Company’s business activities

In 2016 Home Credit provided loans totalling CZK 11.5 billion, up 11% from the previous year. The following products from our portfolio continued to play a key role for us during the year: all-purpose cash loans, consolidations and credit cards. All-purpose cash loans have been a mainstay of our portfolio for many years. In November 2016, we successfully launched in the market a cash loan the revolutionary “Svobodné splácení” benefit. We were the first to offer the possibility to reduce the instalment amount by one-half for up to half of scheduled instalments, without prior notification, having to file an application or to incur additional expenses. We also continued rewarding our clients by refunding a part of interest to those who pay in a due and timely manner. As a part of the reward for due repayment we also launched a new benefit: a loan with 9.9% interest.

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Credit cards play an important role in our portfolio, which we systematically develop in order to further improve their functions. Increasing drawn amounts confirm that clients welcome these modifications. In 2016, credit cards underwent a fundamental change, while we also replaced those approaching the end of their life cycle. In November 2016, we introduced the Šikovná karta card, offering the widest range of useful assistance services in the Czech market. The new Home Credit credit card offers, among other things, three ATM cash withdrawals free of charge, an interest-free period of 51 days, a possibility to repay the card using direct debit, a possibility of cash transfer from the card to a bank account, and a postponement of instalment. We also introduced a new version of the DATART credit card and a new TESCO Premium Plus credit card. At the same time, changes were made to the existing credit card portfolio: for instance, transaction limits were changed, leading to a more comfortable and more frequent use of cards. This dynamic trend of credit card development is to continue in 2017. Loan consolidation continues to be a hot topic in consumer finance, exhibiting stable growth. Home Credit provides its clients with the option of refinancing a wide range of consumer loans, what we consider a significant competitive advantage of the Company. For Home Credit, 2016 was a year of innovation and a significant improvement in the Company’s online presence. As we are aware that a large portion of the population uses the internet on a daily basis, we devote considerable effort to developing Finance Manager, our online application. In 2016 the application underwent a number of additional adjustments and improvements, including the possibility to view the card account statement, to set the method of sending monthly statements, to set a SMS info service, etc. Our long-term strategy is based on improving and developing customer experience. We make every effort to ensure that clients return to us and that we are their number one choice when they need assistance with their financial situation. The primary objective of our customer experience programme is to improve customers’ experience with Home Credit services by changing processes and by introducing new processes and products. The Company adjusts processes based on customer satisfaction survey results, so that the client can enjoy services of the highest quality possible. In 2016 we launched a range of successful campaigns focusing primarily on benefits for clients who make due and timely instalment payments. Such clients could qualify for various types of financial benefits. In particular, there was a campaign involving a reimbursement of a quarter of interest paid as a reward for due repayment. The company’s key business partners include Tesco Stores ČR a.s. (“Tesco Stores”) and DATART INTERNATIONAL, a.s. (“DATART”). Together with Tesco Stores we developed the Clubcard Premium Plus credit card, and with DATART, a new version of the DATART credit card. For Home Credit, a company open to new opportunities and ideas, 2016 was a year full of innovative projects. During the year, we continued to develop the Try Before You Buy (Kup Najisto), Japanese Loan (Japonská půjčka) projects and we also came up with the new Koupito a Zaslouzimsi.cz projects. We are confident that these projects will be successful in the following year as well.

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Report on relations between the controlling entity and the controlled entity and between the controlled entity and entities controlled by the same controlling entity for 2016

In accordance with Section 82 et seq. of Act No 90/2012 Coll., on Companies and Cooperatives, as amended, (“AoC”) and pursuant to Section 504 of Act No. 89/2012 Coll., the Civil Code, as amended, which governs trade secrets, the board of directors of the controlled entity – Home Credit a.s., with its registered office at Nové sady 996/25, Brno, postcode 602 00, ID# 269 78 636, recorded in the Commercial Register maintained by the Regional Court in Brno, under File No. B 4401 (“the Company”) – has prepared the following report on relations between the controlling entity and the Company and between the Company and entities controlled by the same controlling entity (“Report on Relations”) for the accounting period from 1 January 2016 to 31 December 2016 (“the Accounting Period”):

1. Structure of relations between the controlling entity and the Company and between the Company and entities controlled by the same controlling entity

Throughout the Accounting Period, the Company was part of the PPF group, whose structure is provided in Appendix 1 to this Report on Relations. The Company is directly owned by its sole shareholder, Home Credit B. V., with its registered office at Strawinskylaan 933, 1077XX Amsterdam, Netherlands.

2. Role of the Company

During the Accounting Period, the Company did not adopt or implement any measures or other legal arrangements providing it with special advantages or imposing special obligations on it in the interest or at the initiative of the controlling entity or entities controlled by the same controlling entity. In relation to control, the Company benefits from no special advantages and has no special obligations vis-à-vis the controlling entity and/or entities controlled by the same controlling entity beyond those negotiated in the agreements listed in section 5 of this Report on Relations.

The Company’s principal activities recorded in the Commercial Register are the provision and brokerage of consumer loans; manufacture, trade and services not listed in Annexes 1 to 3 to the Trade Licensing Act; and accounting advisory, bookkeeping and maintenance of tax records. The Company’s primary role is to provide consumer loans in the Czech market on behalf of the Home Credit group. Within the group of entities controlled by the same controlling entities, the Company also acts as a parent company and exercises its influence by participating in the general meetings of its subsidiary, HC Broker, s.r.o., with its registered office at Nové sady 996/25, Brno, postcode 602 00, ID# 291 96 540.

3. Method and means of control

The controlling entity exercises control through its ownership rights via decisions at the Company’s general meetings (or decisions of the Company’s sole shareholder). Methods and means of controlling the Company include the Company’s articles of association and decisions of the Company’s supreme body. No special agreements exist between the Company and the controlling entity with respect to methods and means of controlling the Company.

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4. Overview of actions pursuant to Section 82(2)(d) AoC

In the Accounting Period, the Company performed the following actions at the initiative or in the interest of the controlling entity or entities controlled by it that related to assets exceeding 10% of the Company’s equity as determined from the latest financial statements:

• The Company paid its sole shareholder, Home Credit B. V., a dividend of MCZK 500 in the Accounting Period.

• In the Accounting Period, the Company sold to AB 4 B.V., a related party, receivables arising from consumer and cash loans of MCZK 2,873, receivables arising from revolving loans of MCZK 6,671 and receivables arising from car loans of MCZK 645.

5. Overview of mutual agreements

The Company has concluded the following agreements with the controlling entity or with entities controlled by the same controlling entity:

The following agreements have been concluded with Home Credit International a.s., with its registered office at Praha 6, Evropská 2690/17, postcode 160 41, ID# 601 92 666: • Contract for the provision of services dated 1 July 2011, as amended, concerning advisory services • Non-disclosure agreement dated 4 May 2010, concerning data protection • Contract for the provision of data processing services dated 31 December 2008, as amended, concerning data processing • Software sublicensing agreement dated 1 January 2011, as amended, concerning a Blaze licence • Contract for the provision of housing services dated 14 January 2013, as amended, concerning lease of a rack plus related services and electric energy for 1/2016 to 6/2016 • Agreement on the reimbursement of expenses relating to the sale of mobile phones dated 1 January 2016, concerning mobile phones • Agreement on the reimbursement of expenses relating to employee business trips dated 1 January 2016, concerning accommodation and related service fees • Agreement on the reimbursement of training expenses dated 1 January 2016, concerning training • Framework agreement on the licenses assignment dated 27 July 2016, concerning IBM MobileFirst licence, IBM MobileFirst support, IBM Security Qradar support.

The following agreements have been concluded with O2 Czech Republic a.s., Za Brumlovkou 266/2, Praha 4, postcode 140 22, ID# 601 93 336: • Cooperation agreement for the provision of ‘EXTRA karta’ product dated 5 January 2015, concerning the rules of creation, promotion and sale of a joint product of the parties named ‘Extra karta’ • Cooperation agreement on financing purchases of goods from O2 dated 10 January 2014, concerning the rules of providing interest-free loans to individuals who have concluded an agreement on the provision of electronic communication with O2, to purchase mobile

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hardware from O2 CZ or its franchisees, as well as the cooperation in offering and providing such loans • Cooperation agreements concerning the provision of information by O2 CZ to Home Credit a.s., upon the customer’s consent, in connection with assessing customer’s solvency when applying for credit with Home Credit a.s.

The following agreements have been concluded with O2 Family, s.r.o., Za Brumlovkou 266/2, Praha 4, postcode 140 22, ID# 24215554: • Agreement on the mediation and support for the provision of ‘EXTRA karta’ product with customers dated 1 September 2015, concerning the rules of promotion and sale of ‘Extra karta’ product.

The following agreements have been concluded with Air Bank a.s., Hráského 2231/25, Praha 4, postcode 148 04, ID# 290 453 71: • Agreement on the sublease of non-residential premises dated 1 October 2015, concerning the sublease of non-residential premises • Contract for the provision of services dated 30 April 2014, concerning services • Agreement on the use of non-residential premises dated 1 July 2014, concerning the use of non-residential premises • Agreement on the use of non-residential premises dated 1 August 2014, concerning the use of non-residential premises • General cooperation agreement concluded on 9 May 2012 • Contract for payroll services dated 3 October 2011, as amended • Agreement on the sublease of non-residential premises dated 1 October 2011, as amended • Loan Agreement dated 1 October 2011, 28 November 2016, concerning the provision of a loan • Agreement on the pledge of bank accounts receivable dated 28 November 2016, concerning loan security.

The following agreements have been concluded with Autotým s.r.o., Hráského 2231/25, Praha, postcode 148 00, ID# 030 40 836: • Agreement on cooperation in distributing financial products no. POS2736, dated 24 June 2014 • Non-disclosure agreement dated 2 September 2014 • Contract for the provision of services dated 1 September 2014, as amended, concerning the provision of advisory and other services • Loan agreement dated 8 August 2014, concerning financial services • Loan agreement dated 4 April 2016, concerning a revolving loan • Purchase agreement dated 14 November 2016, concerning a second hand motor vehicle • Purchase agreement dated 14 November 2016, concerning a second hand motor vehicle • Purchase agreement dated 14 November 2016, concerning a second hand motor vehicle • Purchase agreement dated 14 November 2016, concerning a second hand motor vehicle.

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The following agreements have been concluded with HC Broker, s.r.o., Nové sady 996/25, Brno, postcode 602 00, ID# 291 96 540: • Agreement on the sublease of non-residential premises dated 10 April 2014, concerning the sublease of non-residential premises • Agreement on the performance of insurance-related activities dated 30 March 2011, as amended, concerning the provision of services • Contract for the maintenance of accounts and tax records and for accounting and financial advisory dated 1 April 2010, concerning the provision of advisory, accounting and tax services.

The following agreements have been concluded with Zonky, s.r.o., Evropská 2690/17, Dejvice, 160 00 Praha 6, ID# 03570967: • Cooperation agreement dated 1 June 2015, concerning the provision of information • Service agreement dated 1 April 2015, as amended, concerning the provision of services • Agreement on non-disclosure of confidential information and protection of trade secret dated 14 November 2014.

The following agreements have been concluded with PPF banka a.s., Evropská 2690/17, Praha, postcode 160 41, ID# 471 16 129: • General agreement on payment and banking services dates 1 July 2015, concerning financial services • General agreement on foreign exchange spot transactions dated 27 September 2013, concerning financial services • Confidentiality agreement dated 18 March 2010, concerning other services • Agreement on cooperation in providing processing and other services dated 15 October 2009 • General agreement on opening and maintaining investment current accounts dated 10 October 2005, concerning financial services.

The following agreement has been concluded with Home Credit Slovakia, a.s., Teplická 7434/147, Piešťany, postcode 921 22, Slovakia, ID# 362 34 176: • Contract for the provision of advisory and other services dated 1 May 2005, as amended, concerning the provision of services.

The following agreements have been concluded with PPF a.s., Praha 6, Evropská 2690/17, postcode 160 41, ID# 250 99 345: • Agreement on the reimbursement of expenses relating to the promotion of the Company dated 1 January 2016 • Agreement on the reimbursement of expenses relating to courier services dated 15 January 2016 • Partner presentation agreement dated 4 April 2016 • Agreement on the reimbursement of training expenses dated 26 September 2016 • Agreement on the reimbursement of expenses relating to employee benefits dated 31 December 2016

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• Agreement on the reimbursement of expenses relating to services dated 31 December 2016.

The following agreements have been concluded with Public Picture & Marketing a.s., Hvězdova 1716/2b, Nusle, postcode 140 00 Praha 4, ID# 25667254 • Agreement on the reimbursement of air ticket expenses dated 1 January 2016 • Agreement on the reimbursement of accommodation expenses dated 1 January 2016 • Agreement on the reimbursement of ticket expenses dated 1 January 2016 • Agreement on the reimbursement of expenses for event agency services dated 1 January 2016.

The following agreements have been concluded with AB 4 B. V. (formerly PPF B2 B. V.), Strawinskylaan 933, 1077XX Amsterdam, Netherlands: • Agreement on court enforcement of consumer loan receivables dated 27 December 2013 Another contracting party is the law firm Mgr. Ing. Jaromír Škára, with its registered office at Blatného 1885/36, 616 00 Brno • Agreement on court enforcement of consumer loan receivables dated 7 June 2012 Another contracting party is AK Němec, Bláha & Navrátilová, s.r.o., with its registered office at Prvního pluku 206/7, Praha, postcode 186 00 • Agreement on court enforcement of consumer loan receivables dated 20 January 2012 Other contracting parties are the law firm Mgr. Lucie Toniková, advokát, with its registered office at Haštalská 27, Praha 1, postcode 110 00, and CollectionsPro, s.r.o., with its registered office at Hvězdova1716/2b,140 78 Praha 4 • Personal data processing agreement dated 4 October 2012 Another contracting party is 5 P Agency, spol. s r.o., Vlasty Pittnerové 9, Brno, 621 00 • Personal data processing agreement dated 4 October 2012 Another contracting party is Česká pošta s. p., Politických vězňů 909/4, Praha 1, 225 99 • Agreement on the set–off of receivables dated 31 May 2011 • Agreement on consumer loan assets administration dated 1 January 2011, as amended Another contracting party is the law firm JUDr. Petr Pečený & part, sdružení advokátů, with its registered office at Praha 1, Purkyňova 2, postcode 110 00 • Agreement on consumer loan assets administration dated 30 September 2009, as amended • Agreement on court enforcement of consumer loan receivables dated 30 September 2009, with AK Muzikář being another contracting party • Personal data processing agreement dated 11 August 2009 • Loan receivables transfer agreement dated 11 August 2009, as amended • Successor loan receivables servicing agreement dated 11 August 2009, as amended • Loan receivables servicing agreement dated 11 August 2009, as amended • Agreement on court enforcement of consumer loan receivables dated 27 December 2013

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Another contracting party is the law firm Mgr. Ing. Jaromír Škára, with its registered office at Blatného 1885/36, 616 00 Brno • Agreement on court enforcement of consumer loan receivables dated 15 May 2012 Another contracting party is AK Němec, Bláha & Navrátilová, s.r.o., with its registered office at Prvního pluku 206/7, Praha, postcode 186 00 • Amendment and restatement of the credit card receivables transfer agreement dated 24 September 2003, concluded on 29 April 2009, as amended • Agreement on court enforcement of consumer loan receivables dated 20 January 2012, Other contracting parties are the law firm Mgr. Lucie Toniková, advokát, with its registered office at Haštalská 27, Praha 1, postcode 110 00, and CollectionsPro, s.r.o., with its registered office at Hvězdova 1716/2b,140 78 Praha 4 • Agreement on credit card assets administration dated 1 January 2011, as amended Another contracting party is the law firm JUDr. Petr Pečený & part., sdružení advokátů, with its registered office at Praha 1, Purkyňova 2, postcode 110 00 • Restatement and amendment of the credit card receivables resale agreement dated 29 April 2009, concluded on 8 September 2010, with Home Credit Finance 1 B. V. being another contracting party, concerning the transfer of receivables • Credit card receivables resale agreement dated 29 April 2009, with Home Credit Finance 1 B. V. being another contracting party, concerning the transfer of receivables • Amendment and restatement of the credit card receivables servicing agreement dated 29 April 2009, as amended, concerning the administration of receivables • Agreement on credit card assets administration dated 29 April 2009, as amended • Personal data processing agreement dated 30 March 2005 (with Česká pošta, s. p.) • Agreement on court enforcement of credit card receivables dated 23 September 2003, as amended Other contracting parties are the law firm JUDr. Muzikář • Car loan receivables transfer agreement dated 14 August 2013, concerning the transfer of receivables • Car loan receivables servicing agreement dated 14 August 2013, concerning the administration of receivables • Personal data processing agreement dated 14 August 2013, concerning the processing of personal data.

The following agreement has been concluded with PPF B2 B. V. (presently AB 4 B. V.), Strawinskylaan 933, 1077XX, Amsterdam, Netherlands; Home Credit International, a.s., with ts registered office at Evropská 2690/17, Praha 6, postcode 160 41; and CM - CREDIT a.s., Praha 5, Kříženeckého náměstí 1079/5b, postcode 15000, ID# 250 95 048: • Successor loan receivables servicing agreement dated 11 August 2009, as amended, concerning the administration of receivables.

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The following agreement has been concluded with Home Credit Finance B. V. (presently AB 4 B. V.), Strawinskylaan 933, 1077XX Amsterdam, Netherlands; Home Credit International, a.s., Evropská 2690/17, Praha 6 postcode 160 41, ID# 601 92 666; and CM - CREDIT a.s., Praha 5, Kříženeckého náměstí 1079/5b, postcode 150 00, ID# 250 95 048: • Successor credit card servicing agreement dated 29 April 2009, as amended, concerning the administration of receivables.

The following agreement has been concluded with AB 6 B. V. (presently AB 4 B. V.), Strawinskylaan 933, 1077XX, Amsterdam, Netherlands; Home Credit International, a.s., with its registered office at Evropská 2690/17, Praha 6, postcode 160 41, ID# 601 92 666; and CM - CREDIT a.s., Praha 5, Kříženeckého náměstí 1079/5b, postcode 15000, ID# 250 95 048: • Successor car loan receivables servicing agreement dated 14 August 2013, concerning the administration of receivables.

The following agreement has been concluded with Home Credit Finance B. V., (presently AB 4 B. V.), Strawinskylaan 933, 1077XX Amsterdam, Netherlands; Home Credit Finance 1 B. V., Fred. Roeskestraat 123 1hg, 1076 EE Amsterdam, Netherlands; and HCF FUNDING NO. 1 B. V., Fred. Roeskestraat 123 1hg, 1076 EE Amsterdam, Netherlands: • Master redemption and termination deed in relation to the securitisation financing of Home Credit dated 28 April 2009 (other contracting parties: Elektra Purchase No.15 Ltd., Bayerische Hypo – und Vereinsbank AG, London Branch, Česká pojišťovna, CP Reinsurance Company Limited).

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APPENDIX 1 – STRUCTURE OF RELATIONS WITHIN THE PPF GROUP

List of companies directly or indirectly controlled by the same controlling entity Controlling entity (person): Ing. Petr Kellner

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Until 18 AB 1 B.V. 56007043 Netherlands controlling entity by means October Air Bank a.s. of an ownership interest 2016

Entity controlled by the same AB 2 B.V. 57279667 Netherlands controlling entity by means Air Bank a.s. of an ownership interest

Entity controlled by the same Until 18 AB 3 B.V. 58435425 Netherlands controlling entity by means October Air Bank a.s. of an ownership interest 2016

Entity controlled by the same AB 4 B.V. 34186049 Netherlands controlling entity by means Air Bank a.s. of an ownership interest

Entity controlled by the same Until 18 AB 5 B.V. 34192873 Netherlands controlling entity by means October Air Bank a.s. of an ownership interest 2016

Entity controlled by the same Until 18 AB 6 B.V. 58435956 Netherlands controlling entity by means October Air Bank a.s. of an ownership interest 2016

Entity controlled by the same AB 7 B.V. 57279241 Netherlands controlling entity by means Air Bank a.s. of an ownership interest

Entity controlled by the same PPF Capital Accord Research, Czech 29048974 controlling entity by means Partners Fund s.r.o. Republic of an ownership interest B.V.

Entity controlled by the same From 14 Czech Air 24 a.s. 5479070 controlling entity by means October PPF a.s. Republic of an ownership interest 2016

Entity controlled by the same Czech Air Bank a.s. 29045371 controlling entity by means Home Credit B.V. Republic of an ownership interest

Entity controlled by the same Czech Airline Gate 1 s.r.o. 2973081 controlling entity by means PPF a.s. Republic of an ownership interest

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same PPF Real Estate ALCAMORA LIMITED HE 290 379 Cyprus controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same PPF Real Estate ALMONDSEY LIMITED HE 291 856 Cyprus controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same ALRIK VENTURES TOLESTO HE 318 488 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

Entity controlled by the same ANTHEMONA Comcity Office HE 289 677 Cyprus controlling entity by means LIMITED Holding B.V. of an ownership interest

Entity controlled by the same ANTHIAROSE LIMITED HE 224463 Cyprus controlling entity by means PPF Group N.V. of an ownership interest

Entity controlled by the same Czech Office Star Areál Ďáblice s.r.o. 3762939 controlling entity by means Republic Nine s.r.o. of an ownership interest

Entity controlled by the same Czech Office Star Eight Art Office Gallery a.s. 24209627 controlling entity by means Republic a.s. of an ownership interest

Entity controlled by the same ASTAVEDO LIMITED HE 316 792 Cyprus controlling entity by means Home Credit B.V. of an ownership interest

Entity controlled by the same Czech Home Credit Lab Autotým, s.r.o. 3040836 controlling entity by means Republic N.V. of an ownership interest

Entity controlled by the same B2S Servisní, a.s. v Czech ANTHIAROSE 19013825 controlling entity by means likvidaci Republic LIMITED of an ownership interest

Entity controlled by the same Bavella B.V. 52522911 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Until 15 Bestsport Services, Czech ANTHIAROSE 24215171 controlling entity by means September a.s. v likvidaci Republic LIMITED of an ownership interest 2016

Entity controlled by the same Czech LINDUS SERVICES Bestsport, a.s. 24214795 controlling entity by means Republic LIMITED of an ownership interest

Entity controlled by the same Czech From 19 May BONAK a.s. 5098815 controlling entity by means PPF a.s. Republic 2016 of an ownership interest

Entity controlled by the same Bolt Start Up Czech O2 Czech 4071336 controlling entity by means Development a.s. Republic Republic a.s. of an ownership interest

GLANCUS Entity controlled by the same INVESTMENTS BORACORA LIMITED HE 251 936 Cyprus controlling entity by means INC. of an ownership interest

FIGERA LIMITED

From 7 May Entity controlled by the same FACIPERO 2016 until 8 BOVESTO LIMITED HE353152 Cyprus controlling entity by means INVESTMENTS December of an ownership interest LIMITED 2016

Entity controlled by the same Pharma Boryspil Project 34999054 controlling entity by means Consulting Group Management Ltd. of an ownership interest Ltd.

Entity controlled by the same British Virgin BORACORA Bucca Properties Ltd. 1377468 controlling entity by means Islands LIMITED of an ownership interest

Entity controlled by the same Capellalaan Seven Assets 58391312 Netherlands controlling entity by means (Hoofddorp) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Until 27 CAPERTON HOLDINGS Corvus Services HE 173 977 Cyprus controlling entity by means September LIMITED Limited of an ownership interest 2016

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Celestial Holdings British Virgin PPF Real Estate 1471389 controlling entity by means Group Limited Islands Holding B.V. of an ownership interest

Česká Entity controlled by the same telekomunikační CETIN Finance B.V. 66805589 Netherlands controlling entity by means infrastruktura of an ownership interest a.s.

From 25 April Česká Entity controlled by the same Czech 2016 until 1 telekomunikační CETIN služby s.r.o. 5022983 controlling entity by means Republic September infrastruktura of an ownership interest 2016 a.s.

CF Commercial Entity controlled by the same Consulting (Beijing) 78860280-7 controlling entity by means Home Credit B.V. Limited of an ownership interest

Entity controlled by the same CITY TOWER Holding Czech PPF Real Estate 2650665 controlling entity by means a.s. Republic Holding B.V. of an ownership interest

Entity controlled by the same Until 27 Czech CITY TOWER CITY TOWER, a.s. 271 03 251 controlling entity by means September Republic Holding a.s. of an ownership interest 2016

Entity controlled by the same STINCTUM 106525903589 CJSC "Intrust NN" controlling entity by means HOLDINGS 6 of an ownership interest LIMITED

Entity controlled by the same CJSC "Investments 103773986505 Trilogy Park Russia controlling entity by means trust" 2 Holding B.V. of an ownership interest

SEPTUS HOLDING LIMITED, TALPA ESTERO LIMITED, RHASKOS FINANCE «Closed Joint Stock Entity controlled by the same LIMITED, Insurance Company 806000245 controlling entity by means SYLANDER «Asnova Insurance»" of an ownership interest CAPITAL LIMITED, ENADOCO LIMITED, ASTAVEDO LIMITED

Entity controlled by the same Until 30 June ANTHIAROSE Codar Invest B.V. 27278985 Netherlands controlling entity by means 2016 LIMITED of an ownership interest

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Comcity Office PPF Real Estate 64411761 Netherlands controlling entity by means Holding B.V. Holding B.V. of an ownership interest

Entity controlled by the same Until 29 Corvus Services British Virgin VELTHEMIA 1061050 controlling entity by means December Limited Islands LIMITED of an ownership interest 2016

Entity controlled by the same Czech Equestrian Czech controlling entity acting in SUNDOWN 019 52 684 Team a.s. Republic concert by means FARMS LIMITED of an ownership interest

Entity controlled by the same Česká CZECH TELECOM controlling entity acting in telekomunikační 229578s Austria Austria GmbH concert by means infrastruktura of an ownership interest a.s.

Entity controlled by the same Česká CZECH TELECOM controlling entity acting in telekomunikační HRB 51503 Germany Germany GmbH concert by means infrastruktura of an ownership interest a.s.

PPF Česká Entity controlled by the same Czech Infrastructure telekomunikační 040 84 063 controlling entity by means Republic B.V. infrastruktura a.s. of an ownership interest

PPF A3 B.V.

Entity controlled by the same TOLESTO DADRIN LIMITED HE 321 173 Cyprus controlling entity by means LIMITED of an ownership interest

Entity controlled by the same De Reling (Dronten) Seven Assets 58164235 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Entity controlled by the same Celestial DELIFLEX LIMITED HE 221 768 Cyprus controlling entity by means Holdings Group of an ownership interest Limited

Entity controlled by the same Until 12 July DOUSAVI LIMITED HE 331 420 Cyprus controlling entity by means Bavella B.V. 2016 of an ownership interest

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Eastern Properties PPF Real Estate 58756566 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Entity controlled by the same Czech From 17 May O2 Czech eKasa s.r.o. 050 89 131 controlling entity by means Republic 2016 Republic a.s. of an ownership interest

Entity controlled by the same ELDORADO From 26 April HE 144 889 Cyprus controlling entity by means LLC Eldorado LICENSING LIMITED 2016 of an ownership interest

Entity controlled by the same PPF Real Estate ELTHYSIA LIMITED HE 290 356 Cyprus controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same ENADOCO LIMITED HE 316 486 Cyprus controlling entity by means Home Credit B.V. of an ownership interest

Entity controlled by the same FACIPERO ETO LICENSING HE 179 386 Cyprus controlling entity by means INVESTMENTS LIMITED of an ownership interest LIMITED

Entity controlled by the same EusebiusBS (Arnhem) Seven Assets 58169778 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

FACIPERO Entity controlled by the same INVESTMENTS HE 232 483 Cyprus controlling entity by means PPF Group N.V. LIMITED of an ownership interest

Entity controlled by the same Home Credit Asia Favour Ocean Limited 1065678 controlling entity by means Limited of an ownership interest

KARMION Entity controlled by the same FAYDE INVESTMENTS HOLDINGS HE 310 390 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same FELISTON SALEMONTO HE 152674 Cyprus controlling entity by means ENTERPRISES LIMITED LIMITED of an ownership interest

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

KARMION Entity controlled by the same FERRYMAT HOLDINGS HOLDINGS HE 313289 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same PPF Real Estate FIGERA LIMITED HE 251 908 Cyprus controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same Fodina B.V. 59400676 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

GABELLI Entity controlled by the same VELTHEMIA CONSULTANCY HE 160 589 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

KARMION Entity controlled by the same GALIO INVESTMENTS HOLDINGS HE 310 260 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same GLANCUS Garco Group B.V. 34245884 Netherlands controlling entity by means INVESTMENTS of an ownership interest INC.

Entity controlled by the same Czech Office Star Eight Gen Office Gallery a.s. 24209881 controlling entity by means Republic a.s. of an ownership interest

Entity controlled by the same German Properties PPF Real Estate 61008664 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Entity controlled by the same GLANCUS British Virgin PPF Real Estate 1396023 controlling entity by means INVESTMENTS INC. Islands Holding B.V. of an ownership interest

Entity controlled by the same Celestial GRACESPRING HE 208 337 Cyprus controlling entity by means Holdings Group LIMITED of an ownership interest Limited

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Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Grandview Resources British Virgin 1664098 controlling entity by means Bavella B.V. Corp. Islands of an ownership interest

Guangdong Home Entity controlled by the same Home Credit Asia Credit Number Two 76732894-1 China controlling entity by means Limited Consulting Co., Ltd of an ownership interest

Entity controlled by the same HC Asia N.V. 34253829 Netherlands controlling entity by means Home Credit B.V. of an ownership interest

Entity controlled by the same Czech HC Broker, s.r.o. 29196540 controlling entity by means Home Credit a.s. Republic of an ownership interest

Entity controlled by the same HC Consumer Finance HC Philippines CS 201301354 Philippines controlling entity by means Philippines, Inc Holding B.V. of an ownership interest

Entity controlled by the same HC Insurance Services Czech 1487779 controlling entity by means Home Credit B.V. s.r.o. Republic of an ownership interest

Entity controlled by the same HC Philippines 35024270 Netherlands controlling entity by means HC Asia N.V. Holding B.V. of an ownership interest

Entity controlled by the same Hofplein Offices PPF Real Estate 64398064 Netherlands controlling entity by means (Rotterdam) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Czech Home Credit a.s. 26978636 controlling entity by means Home Credit B.V. Republic of an ownership interest

Entity controlled by the same Home Credit Asia 890063 Hong Kong controlling entity by means HC Asia N.V. Limited of an ownership interest

Entity controlled by the same PPF Financial Home Credit B.V. 34126597 Netherlands controlling entity by means Holding B.V. of an ownership interest

Home Credit Business Entity controlled by the same Until 25 July Home Credit Asia Management (Tianjin) 67596220-8 China controlling entity by means 2016 Limited Co., Ltd. of an ownership interest

16

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Home Credit Entity controlled by the same 911201166360 Consumer Finance China controlling entity by means Home Credit B.V. 67462H Co., Ltd of an ownership interest

Entity controlled by the same Home Credit Egypt HC Philippines 50614 Egypt controlling entity by means Trade S.A.E. Holding B.V. of an ownership interest

Entity controlled by the same HOME CREDIT United 7744459 controlling entity by means PPF Group N.V. EUROPE PLC Kingdom of an ownership interest

Entity controlled by the same Home Credit India 52695255 Netherlands controlling entity by means HC Asia N.V. B.V. of an ownership interest

HOME CREDIT INDIA Entity controlled by the same U65910HR199 Home Credit FINANCE PRIVATE India controlling entity by means 7PTC047448 India B.V. LIMITED of an ownership interest

Entity controlled by the same Home Credit 52695557 Netherlands controlling entity by means HC Asia N.V. B.V. of an ownership interest

Entity controlled by the same Home Credit Czech 60192666 controlling entity by means Home Credit B.V. International a.s. Republic of an ownership interest

Entity controlled by the same Home Credit Lab N.V. 52695689 Netherlands controlling entity by means Home Credit B.V. of an ownership interest

Entity controlled by the same Home Credit Slovakia, 36234176 Slovakia controlling entity by means Home Credit B.V. a.s. of an ownership interest

Entity controlled by the same Home Credit US United States 5467913 controlling entity by means Home Credit B.V. Holding, LLC of America of an ownership interest

Entity controlled by the same United States Home Credit US Home Credit US, LLC 5482663 controlling entity by means of of America Holding an ownership interest

Home Credit Entity controlled by the same Finance Company 307672788 Vietnam controlling entity by means Home Credit B.V. Limited of an ownership interest

17

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same PPF PROPERTY HOPAR LIMITED HE 188 923 Cyprus controlling entity by means LIMITED of an ownership interest

Entity controlled by the same Czech controlling entity acting in SUNDOWN Horse Arena s.r.o. 044 79 823 Republic concert by means FARMS LIMITED of an ownership interest

Entity controlled by the same Chelton Properties British Virgin 1441835 controlling entity by means Ing. Petr Kellner Limited Islands of an ownership interest

Entity controlled by the same From 2 Bolt Start Up iCORD International Czech 27405354 controlling entity by means September Development s.r.o. Republic of an ownership interest 2016 a.s.

Entity controlled by the same Czech O2 Czech Internethome, s.r.o. 24161357 controlling entity by means Republic Republic a.s. of an ownership interest

Entity controlled by the same PPF Real Estate JARVAN HOLDINGS HE 310 140 Cyprus controlling entity by means Holding B.V. LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same JH Media Services Czech 4002423 controlling entity by means Bestsport, a.s. Plus s.r.o. Republic of an ownership interest

Entity controlled by the same Johan H (Amsterdam) Seven Assets 58163239 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Joint Stock Company Entity controlled by the same JARVAN 102770047375 "Gorod Molodogo Russia controlling entity by means HOLDINGS 6 Pokolenija" of an ownership interest LIMITED

Entity controlled by the same Joint Stoct Company 103550101722 Russia controlling entity by means LLC Trust - Invest "Sibzavod Centre" 1 of an ownership interest

18

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Celestial Entity controlled by the same Holdings Group JONSA LIMITED HE 275 110 Cyprus controlling entity by means Limited of an ownership interest FIGERA LIMITED

JSC Yugo - Vostochnaya Entity controlled by the same JARVAN 103770000889 promyshlennaya Russia controlling entity by means HOLDINGS 5 companiya of an ownership interest LIMITED "KARTONTARA"

Entity controlled by the same 70-700-1910- JSC HC Kazakhstan Kazakhstan controlling entity by means HC Asia N.V. AO of an ownership interest

Entity controlled by the same KARMION HOLDINGS PPF Real Estate HE 312 004 Cyprus controlling entity by means LIMITED Holding B.V. of an ownership interest

Entity controlled by the same Karperstraat Seven Assets 58163883 Netherlands controlling entity by means (Amsterdam) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Kateřinská Office Czech PPF Real Estate 3495663 controlling entity by means Building s.r.o. Republic s.r.o. of an ownership interest

Entity controlled by the same German Langen Property B.V. 61012777 Netherlands controlling entity by means Properties B.V. of an ownership interest

Entity controlled by the same Czech LINDUS SERVICES LINDUS Real s.r.o. 29139309 controlling entity by means Republic LIMITED of an ownership interest

Entity controlled by the same Prague LINDUS SERVICES HE 281 891 Cyprus controlling entity by means Entertainment LIMITED of an ownership interest Group B.V.

Entity controlled by the same 107776015861 GRACESPRING LLC Alfa South Russia controlling entity by means 8 LIMITED of an ownership interest

Entity controlled by the same 108662700063 LLC Alians R Russia controlling entity by means JONSA LIMITED 5 of an ownership interest

19

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same ALMONDSEY 112774722819 LLC Almondsey Russia controlling entity by means LIMITED 0 of an ownership interest

LLC Charlie Com

Entity controlled by the same LLC Bonus Center 112774649186 LLC Home Credit Russia controlling entity by means Operations 1 & Finance Bank of an ownership interest

Entity controlled by the same JARVAN 110774695043 LLC BRAMA Russia controlling entity by means HOLDINGS 1 of an ownership interest LIMITED

Entity controlled by the same Until 27 JARVAN LLC Bryanskii Torgovij 106325003438 Russia controlling entity by means October HOLDINGS Centr-Invest 5 of an ownership interest 2016 LIMITED

Entity controlled by the same Until 22 June LLC Collect Credit 36726094 Ukraine controlling entity by means Home Credit B.V. 2016 of an ownership interest

Entity controlled by the same Until 8 LLC Comcity 515774611295 Comcity Office Russia controlling entity by means February Kotelnaya 9 Holding B.V. of an ownership interest 2016

Entity controlled by the same ALMONDSEY 113774633035 LLC Delta Com Russia controlling entity by means LIMITED 8 of an ownership interest

LLC Charlie Com

Entity controlled by the same LLC EASTERN 113774692983 Russia controlling entity by means Bavella B.V. PROPERTIES RUSSIA 6 of an ownership interest

Entity controlled by the same 102020130247 TAPADEO LLC El Logistic Russia controlling entity by means 2 LIMITED of an ownership interest

LLC Eldorado Entity controlled by the same Until 8 104500295035 LLC Eldomarket Russia controlling entity by means December 4 BOVESTO of an ownership interest 2016 LIMITED

20

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Until 8 507774635445 LLC Eldorado Russia controlling entity by means December 0 of an ownership interest 2016

BOVESTO LIMITED

Entity controlled by the same Until 8 102160176739 LLC Ellin Russia controlling entity by means December LLC Invest Realty 5 of an ownership interest 2016

Joint Stock Entity controlled by the same 104470218086 Company "Gorod LLC ERKO Russia controlling entity by means 3 Molodogo of an ownership interest Pokolenija"

Entity controlled by the same FAYDE 105300116330 LLC Fantom Russia controlling entity by means INVESTMENTS 2 of an ownership interest LIMITED

Entity controlled by the same LLC Financial 104779656622 LLC Home Credit Russia controlling entity by means Innovations 3 & Finance Bank of an ownership interest

Entity controlled by the same Home Credit B.V. LLC Home Credit & 102770028093 Russia controlling entity by means Finance Bank 7 of an ownership interest Home Credit International a.s.

Entity controlled by the same LLC Home Credit 102773923601 Russia controlling entity by means Home Credit B.V. Insurance 8 of an ownership interest

Entity controlled by the same LLC Home Credit 115774658794 Home Credit Lab Russia controlling entity by means Online 3 N.V. of an ownership interest

Entity controlled by the same REDLIONE LLC HOMER 35364346 Ukraine controlling entity by means LIMITED SOFTWARE HOUSE of an ownership interest

Home Credit B.V.

21

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same ALMONDSEY 113774633033 LLC Charlie Com Russia controlling entity by means LIMITED 6 of an ownership interest

LLC Almondsey

Entity controlled by the same 112774618650 LLC ICC Klokovo Russia controlling entity by means LLC Rutar Invest 1 of an ownership interest

Entity controlled by the same 105230913862 LLC In Vino Russia controlling entity by means LLC Alfa South 8 of an ownership interest

Entity controlled by the same LLC IN VINO - ANAPA - 107230100020 Until 20 July LLC IN VINO Russia controlling entity by means 2 0 2016 HOLDING of an ownership interest

Entity controlled by the same UNDERTREA Until 20 July LLC IN VINO HOLDING 7734565173 Russia controlling entity by means HOLDINGS 2016 of an ownership interest LIMITED

Entity controlled by the same LLC In Vino 105230908188 Until 20 July LLC IN VINO Russia controlling entity by means Natukhaevskoe 0 2016 HOLDING of an ownership interest

LLC Eldorado Entity controlled by the same Until 8 105774621266 LLC Invest Realty Russia controlling entity by means December 6 BOVESTO of an ownership interest 2016 LIMITED

Entity controlled by the same JARVAN 107776000462 LLC K-Development Russia controlling entity by means HOLDINGS 9 of an ownership interest LIMITED

Entity controlled by the same GALIO 112774619060 LLC KEPS Russia controlling entity by means INVESTMENTS 4 of an ownership interest LIMITED

Entity controlled by the same 105632017256 PPF PROPERTY LLC Kvartal Togliatti Russia controlling entity by means 7 LIMITED of an ownership interest

22

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

LLC EASTERN Entity controlled by the same 113574900079 PROPERTIES LLC LB Orel Russia controlling entity by means 3 RUSSIA of an ownership interest

LLC LB Voronezh

LLC EASTERN Entity controlled by the same 113366803387 PROPERTIES LLC LB Voronezh Russia controlling entity by means 2 RUSSIA of an ownership interest

LLC LB Orel

Entity controlled by the same ELTHYSIA 111504800215 LLC Logistics - A Russia controlling entity by means LIMITED 6 of an ownership interest

FIGERA LIMITED

Entity controlled by the same FERRYMAT 116774609023 From 26 LLC Logistika - Rostov Russia controlling entity by means HOLDINGS 6 January 2016 of an ownership interest LIMITED

Entity controlled by the same 115028006947 TAPADEO LLC Logistika - Ufa Russia controlling entity by means 7 LIMITED of an ownership interest

Entity controlled by the same 102770028064 LLC MCC Kupi ne kopi Russia controlling entity by means Home Credit B.V. 0 of an ownership interest

Entity controlled by the same MICROLIGHT 110774647338 LLC Mitino Sport City Russia controlling entity by means TRADING 3 of an ownership interest LIMITED

23

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same From 9 515774611291 Comcity Office LLC My Gym Russia controlling entity by means February 5 Holding B.V. of an ownership interest 2016

Entity controlled by the same From 28 116774686167 Paleos Industries LLC Oil Investments Russia controlling entity by means September 7 B.V. of an ownership interest 2016

Entity controlled by the same 102773903109 LLC PPF Life Insurance Russia controlling entity by means PPF Group N.V. 9 of an ownership interest

Entity controlled by the same LLC PPF Real Estate 105774955756 PPF Real Estate Russia controlling entity by means Russia 8 Holding B.V. of an ownership interest

Entity controlled by the same Bavella B.V. 107366702287 LLC RAV Agro Russia controlling entity by means 9 of an ownership interest Grandview Resources Corp.

Entity controlled by the same 111574100149 LLC RAV Agro Orel Russia controlling entity by means LLC RAV Agro 6 of an ownership interest

Entity controlled by the same 111580200176 Until 26 LLC RAV Agro Penza Russia controlling entity by means LLC RAV Agro 5 March 2016 of an ownership interest

Entity controlled by the same LLC RAV Agro 103360013555 LLC RAV Agro Pro Russia controlling entity by means 7 of an ownership interest

LLC RAV Molokoprodukt

LLC RAV Agro Entity controlled by the same LLC RAV 108362700156 Russia controlling entity by means Molokoprodukt 7 of an ownership interest Bavella B.V. Grandview Resources Corp.

24

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same LLC RAV 113574900168 LLC RAV Russia controlling entity by means Myasoproduct - Orel 4 Molokoprodukt – of an ownership interest

Entity controlled by the same 102360123252 LLC RAV Niva Russia controlling entity by means LLC RAV Agro 2 of an ownership interest

Entity controlled by the same 111366805109 LLC RAV Niva Orel Russia controlling entity by means LLC RAV Agro 0 of an ownership interest

Entity controlled by the same 115500900260 VELTHEMIA LLC Razvitie Russia controlling entity by means 9 LIMITED of an ownership interest

Entity controlled by the same LLC Regional Real 113774621795 PPF REAL ESTATE Russia controlling entity by means Estate 0 LIMITED of an ownership interest

LLC Eldorado

Entity controlled by the same Until 8 102770040350 LLC Rentol Russia controlling entity by means December 0 of an ownership interest 2016 BOVESTO LIMITED

Entity controlled by the same 510774604932 LLC ROKO Russia controlling entity by means JONSA LIMITED 9 of an ownership interest

Entity controlled by the same 110360100003 LLC ROST Agro Russia controlling entity by means LLC RAV Agro 0 of an ownership interest

Entity controlled by the same 113774632564 STEPHOLD LLC Rutar Invest Russia controlling entity by means 0 LIMITED of an ownership interest

Entity controlled by the same GABELLI LLC Skladi 104 5009049271 Russia controlling entity by means CONSULANCY of an ownership interest LIMITED

Entity controlled by the same 113774621497 LLC Skolkovo Gate Russia controlling entity by means Trigon II B.V. 9 of an ownership interest

25

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same 111774690150 LLC Sotio Russia controlling entity by means Sotio N.V. 2 of an ownership interest

Entity controlled by the same EIN 35- United States LLC Sotio controlling entity by means Sotio N.V. 2424961 of America of an ownership interest

Entity controlled by the same NIDALEE 109774635680 LLC Spectrum Russia controlling entity by means HOLDING 6 of an ownership interest LIMITED

Entity controlled by the same VELTHEMIA LLC Strata 7702765300 Russia controlling entity by means LIMITED of an ownership interest

Entity controlled by the same 105632017261 Until 5 LLC Kvartal LLC Stroyinvest Russia controlling entity by means 1 August 2016 Togliatti of an ownership interest

Entity controlled by the same 115502700103 LLC PPF Real LLC TGK - Trilogy Russia controlling entity by means 0 Estate Russia of an ownership interest

Entity controlled by the same 105610200371 LLC TK Donskoe Russia controlling entity by means LLC Trust - Invest 5 of an ownership interest

Entity controlled by the same JARVAN LLC Torgovij complex 107482300159 Russia controlling entity by means HOLDINGS Lipetskiy 3 of an ownership interest LIMITED

Entity controlled by the same 111774655002 PPF Real Estate LLC Tower Russia controlling entity by means 0 Holding B.V. of an ownership interest

LLC Eldorado

Entity controlled by the same Until 8 LLC Trade center 108774624369 Russia controlling entity by means December "Permskiy" 4 of an ownership interest 2016 BOVESTO LIMITED

Entity controlled by the same From 24 115502700739 Trilogy Park LLC Trilogy Services Russia controlling entity by means November 8 Holding B.V. of an ownership interest 2016

26

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same JARVAN 105774639130 LLC Trust - Invest Russia controlling entity by means HOLDINGS 6 of an ownership interest LIMITED

Entity controlled by the same 106362701191 LLC Uhrozhay Russia controlling entity by means LLC Yug 0 of an ownership interest

Entity controlled by the same 108362700156 LLC Yug Russia controlling entity by means LLC LB Voronezh 7 of an ownership interest

Entity controlled by the same Seven Assets LvZH (Rijswijk) B.V. 58163999 Netherlands controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same Until 22 Mapleridge British Virgin ANTHIAROSE 1668985 controlling entity by means December Development Limited Islands LIMITED of an ownership interest 2016

Entity controlled by the same Czech Maraflex s.r.o. 2415852 controlling entity by means PPF Group N.V. Republic of an ownership interest

Entity controlled by the same MICROLIGHT PPF Real Estate HE 224 515 Cyprus controlling entity by means TRADING LIMITED Holding B.V. of an ownership interest

Entity controlled by the same Millennium Tower Seven Assets 56261330 Netherlands controlling entity by means (Rotterdam) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Celestial MINIFLEX LIMITED HE 221 915 Cyprus controlling entity by means Holdings Group of an ownership interest Limited

Entity controlled by the same From 22 Bolt Start Up Czech Misterine s.r.o. 5249899 controlling entity by means September Development Republic of an ownership interest 2016 a.s.

Entity controlled by the same PPF FO Czech MOETON a.s. 27864561 controlling entity by means Management Republic of an ownership interest B.V.

Entity controlled by the same Monheim Property German 61012521 Netherlands controlling entity by means B.V. Properties B.V. of an ownership interest

27

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Monchyplein (Den Seven Assets 58163603 Netherlands controlling entity by means Haag) B.V. Holding B.V. of an ownership interest

Entity controlled by the same PPF FO Czech Montería, spol. s r.o. 27901998 controlling entity by means Management Republic of an ownership interest B.V.

Entity controlled by the same Czech Moranda, a.s. 28171934 controlling entity by means PPF Group N.V. Republic of an ownership interest

Entity controlled by the same Mystery Services Czech 24768103 controlling entity by means PPF a.s. s.r.o. Republic of an ownership interest

Entity controlled by the same Until 12 July NACUDU LIMITED HE 254 166 Cyprus controlling entity by means PPF Group N.V. 2016 of an ownership interest

Entity controlled by the same From 2 Naneva B.V. 67400639 Netherlands controlling entity by means December PPF Group N.V. of an ownership interest 2016

Entity controlled by the same Czech Net Gate s.r.o. 247 65 651 controlling entity by means PPF a.s. Republic of an ownership interest

KARMION Entity controlled by the same NIDALEE HOLDING HOLDINGS HE 310 150 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same O2 Business Services, Czech O2 Czech 50087487 controlling entity by means a.s. Republic Republic a.s. of an ownership interest

PPF Telco B.V. Entity controlled by the same O2 Czech Republic Czech 60193336 controlling entity by means a.s. Republic of an ownership interest PPF A3 B.V.

28

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Czech O2 Czech O2 Family, s.r.o. 24215554 controlling entity by means Republic Republic a.s. of an ownership interest

Entity controlled by the same From 26 O2 Financial Services Czech O2 Czech 5423716 controlling entity by means September s.r.o. Republic Republic a.s. of an ownership interest 2016

Entity controlled by the same Czech O2 Czech O2 IT Services s.r.o. 2819678 controlling entity by means Republic Republic a.s. of an ownership interest

Entity controlled by the same O2 Czech O2 Slovakia, s.r.o. 35848863 Slovakia controlling entity by means Republic a.s. of an ownership interest

Entity controlled by the same Czech O2 Czech O2 TV s.r.o. 3998380 controlling entity by means Republic Republic a.s. of an ownership interest

Entity controlled by the same Czech PPF PROPERTY Office Star Eight a.s. 27639177 controlling entity by means Republic LIMITED of an ownership interest

Entity controlled by the same Office Star Five, spol. Czech Until 31 May TENACITY 27639185 controlling entity by means s r.o. Republic 2016 LIMITED of an ownership interest

Entity controlled by the same Office Star Nine, spol. Czech PPF PROPERTY 27904385 controlling entity by means s r. o. Republic LIMITED of an ownership interest

Entity controlled by the same Office Star Two, spol. Czech Until 31 May TENACITY 27639169 controlling entity by means s r.o. Republic 2016 LIMITED of an ownership interest

OJSC „Non-banking Entity controlled by the same Credit and Financial 807000056 Belarus controlling entity by means Home Credit B.V. Organization „Home of an ownership interest Credit“

Entity controlled by the same PPF Capital ORIBASE Pharma SAS 499824670 France controlling entity by means Partners Fund of an ownership interest B.V.

Entity controlled by the same ANTHIAROSE PACHATA LIMITED HE 188 914 Cyprus controlling entity by means LIMITED of an ownership interest

29

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same From 19 Paleos Industries B.V. 66846919 Netherlands controlling entity by means September PPF Group N.V. of an ownership interest 2016

Entity controlled by the same Pharma Consulting HOPAR LIMITED 34529634 Ukraine controlling entity by means Group Ltd. of an ownership interest

FIGERA LIMITED

Entity controlled by the same Pompenburg Seven Assets 58163506 Netherlands controlling entity by means (Rotterdam) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Czech PPF a.s. 25099345 controlling entity by means PPF Group N.V. Republic of an ownership interest

Entity controlled by the same PPF A3 B.V. 61684201 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

Entity controlled by the same PPF A4 B.V. 63365391 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

Entity controlled by the same Czech PPF Advisory (CR) a.s. 25792385 controlling entity by means PPF Group N.V. Republic of an ownership interest

Entity controlled by the same PPF ADVISORY HE 276 979 Cyprus controlling entity by means PPF Group N.V. (RUSSIA) LIMITED of an ownership interest

Entity controlled by the same PPF Advisory (UK) United 5539859 controlling entity by means PPF Group N.V. Limited Kingdom of an ownership interest

Entity controlled by the same PPF ADVISORY HE 162 172 Cyprus controlling entity by means PPF Group N.V. (UKRAINE) LIMITED of an ownership interest

Entity controlled by the same PPF Arena 1 B.V. 59009187 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

30

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Until 22 PPF Arena 2 B.V. 59029765 Netherlands controlling entity by means PPF Arena 1 B.V. January 2016 of an ownership interest

Entity controlled by the same Czech PPF Art a.s. 63080672 controlling entity by means PPF a.s. Republic of an ownership interest

Entity controlled by the same Czech PPF Financial PPF banka a.s. 47116129 controlling entity by means Republic Holding B.V. of an ownership interest

Entity controlled by the same From 23 PPF Beer IM PPF Beer Bidco B.V. 67332722 Netherlands controlling entity by means November Holdco B.V. of an ownership interest 2016

Entity controlled by the same From 23 PPF Beer Holdco 1 67330495 Netherlands controlling entity by means November PPF Group N.V. B.V. of an ownership interest 2016

Entity controlled by the same From 23 PPF Beer Holdco 2 67330355 Netherlands controlling entity by means November PPF Group N.V. B.V. of an ownership interest 2016

Entity controlled by the same From 23 PPF Beer IM Holdco PPF Beer Holdco 67331378 Netherlands controlling entity by means November B.V. 1 B.V. of an ownership interest 2016

Entity controlled by the same From 6 PPF Beer Topholdco 67420427 Netherlands controlling entity by means December PPF Group N.V. B.V. of an ownership interest 2016

Entity controlled by the same PPF Capital Partners 55003982 Netherlands controlling entity by means PPF Group N.V. Fund B.V. of an ownership interest

Entity controlled by the same Until 30 PPF CO 1 B.V. 34275402 Netherlands controlling entity by means December PPF Group N.V. of an ownership interest 2016

Entity controlled by the same PPF CO 3 B.V. 34360935 Netherlands controlling entity by means PPF banka a.s. of an ownership interest

Entity controlled by the same PPF Financial Czech 24225657 controlling entity by means PPF banka a.s. Consulting s.r.o. Republic of an ownership interest

31

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same PPF Financial Holdings 61880353 Netherlands controlling entity by means PPF Group N.V. B.V. of an ownership interest

Entity controlled by the same PPF FO Management PPF Holdings 34186296 Netherlands controlling entity by means B.V. S.á r.l. of an ownership interest

Entity controlled by the same Czech PPF Real Estate PPF GATE a.s. 27654524 controlling entity by means Republic Holding B.V. of an ownership interest

Entity controlled by the same Ing. Petr Kellner PPF Group N.V. 33264887 Netherlands controlling entity by means of an ownership interest

PPF Holdings B.V.

Entity controlled by the same PPF Healthcare N.V. 34308251 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

Entity controlled by the same PPF Holdings PPF Holdings B.V 34186294 Netherlands controlling entity by means S.á r.l. of an ownership interest

Entity controlled by the same PPF Holdings S.á r.l. B 186335 Luxembourg controlling entity by means Ing. Petr Kellner of an ownership interest

Entity controlled by the same PPF Infrastructure From 22 65167899 Netherlands controlling entity by means PPF Arena 1 B.V. B.V. January 2016 of an ownership interest

Entity controlled by the same PPF Partners 1 GP Until 6 July PPF Partners 49291 Guernsey controlling entity by means Limited 2016 Limited of an ownership interest

Entity controlled by the same PPF Partners a.s. v Czech Until 9 28515064 controlling entity by means PPF a.s. likvidaci Republic March 2016 of an ownership interest

Entity controlled by the same Until 6 July PPF Partners Limited 49292 Guernsey controlling entity by means PPF Group N.V. 2016 of an ownership interest

32

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

GLANCUS Entity controlled by the same PPF PROPERTY INVESTMENTS HE 189 164 Cyprus controlling entity by means LIMITED INC. of an ownership interest

FIGERA LIMITED

Entity controlled by the same PPF Real Estate 34276162 Netherlands controlling entity by means PPF Group N.V. Holding B.V. of an ownership interest

Entity controlled by the same PPF REAL ESTATE PPF Real Estate HE 188 089 Cyprus controlling entity by means LIMITED Holding B.V. of an ownership interest

Entity controlled by the same PPF Real Estate Czech PPF Real Estate s.r.o. 27638987 controlling entity by means Holding B.V. Republic of an ownership interest

Figera Limited

Entity controlled by the same Czech PPF Real Estate PPF reality a.s. 29030072 controlling entity by means Republic Holding B.V. of an ownership interest

Entity controlled by the same Until 6 July PPF RUSSIA LIMITED HE 172467 Cyprus controlling entity by means PPF Group N.V. 2016 of an ownership interest

Entity controlled by the same PPF SECRETARIAL PPF SERVICES HE 340 708 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

Entity controlled by the same PPF SERVICES HE 92432 Cyprus controlling entity by means PPF Group N.V. LIMITED of an ownership interest

Entity controlled by the same From 22 PPF Telco B.V. 65167902 Netherlands controlling entity by means PPF Arena 1 B.V. January 2016 of an ownership interest

Entity controlled by the same Prague Entertainment 63600757 Netherlands controlling entity by means PPF Group N.V. Group B.V. of an ownership interest

33

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same PT Home Credit 03.193.870.7- Home Credit Indonesia controlling entity by means Indonesia 021.000 Indonesia B.V. of an ownership interest

Entity controlled by the same Public Picture & Czech 25667254 controlling entity by means PPF a.s. Marketing a.s. Republic of an ownership interest

Entity controlled by the same Celestial RAVENSBOURNE HE 188 284 Cyprus controlling entity by means Holdings Group LIMITED of an ownership interest Limited

Entity controlled by the same From 10 PPF Real Estate RC PROPERTIES S.R.L. 12663031 Romania controlling entity by means October s.r.o. of an ownership interest 2016

Entity controlled by the same Real Estate Russia PPF Real Estate 63458373 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Entity controlled by the same REDLIONE LIMITED HE 178 059 Cyprus controlling entity by means Home Credit B.V. of an ownership interest

PPF Real Estate Entity controlled by the same Holding B.V. REPIENO LIMITED HE 282 866 Cyprus controlling entity by means GLANCUS of an ownership interest INVESTMENTS INC.

Entity controlled by the same PPF Real Estate Retail Star 22, spol. s Czech 24132161 controlling entity by means Holding B.V. r.o. Republic of an ownership interest

FIGERA LIMITED

Entity controlled by the same RHASKOS FINANCE HE 316 591 Cyprus controlling entity by means Home Credit B.V. LIMITED of an ownership interest

Entity controlled by the same Czech Until 30 June PPF Real Estate RobbyNet s.r.o. 014 08 437 controlling entity by means Republic 2016 Holding B.V. of an ownership interest

Entity controlled by the same Ruconfin B.V. 55391176 Netherlands controlling entity by means PPF banka a.s. of an ownership interest

34

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same GLANCUS RYAZAN INVESTORS HE 180 968 Cyprus controlling entity by means INVESTMENTS COMPANY LIMITED of an ownership interest INC.

RYAZAN Entity controlled by the same RYAZAN SHOPPING INVESTORS HE 180 951 Cyprus controlling entity by means MALL LIMITED COMPANY of an ownership interest LIMITED

Entity controlled by the same Home Credit Asia Saint World Limited 1065677 Hong Kong controlling entity by means Limited of an ownership interest

Entity controlled by the same BORACORA SALEMONTO LIMITED HE 161 006 Cyprus controlling entity by means LIMITED of an ownership interest

Entity controlled by the same 513-1900-AO LLC Home Credit JSC Bank Home Credit Kazakhstan controlling entity by means (UI) & Finance Bank of an ownership interest

Entity controlled by the same SEPTUS HOLDING HE 316 585 Cyprus controlling entity by means Home Credit B.V. LIMITED of an ownership interest

Entity controlled by the same Settembre Holdings British Virgin Until 14 July ANTHIAROSE 1449898 controlling entity by means Limited Islands 2016 LIMITED of an ownership interest

Entity controlled by the same Seven Assets Holding PPF Real Estate 58163050 Netherlands controlling entity by means B.V. Holding B.V. of an ownership interest

Shenzhen Home Entity controlled by the same Favour Ocean Credit Financial 79663852-7 China controlling entity by means Limited Services Co., Ltd. of an ownership interest

Shenzhen Home Entity controlled by the same Home Credit Asia Credit Number One 66417425-7 China controlling entity by means Limited Consulting Co., Ltd. of an ownership interest

Sichuan Home Credit Entity controlled by the same Home Credit Asia Financing Guarantee 66046758-9 China controlling entity by means Limited Co., Ltd. of an ownership interest

Entity controlled by the same Celestial SILINE CONSULTING HE 281 961 Cyprus controlling entity by means Holdings Group LIMITED of an ownership interest Limited

35

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same Celestial SILLERUD LIMITED HE 224 392 Cyprus controlling entity by means Holdings Group of an ownership interest Limited

Slovak Trade Entity controlled by the same SILINE Company, s.r.o. v 36659 061 Slovakia controlling entity by means CONSULTING likvidácii of an ownership interest LIMITED

Entity controlled by the same Czech SOTIO a.s. 24662623 controlling entity by means Sotio N.V. Republic of an ownership interest

Sotio Medical Entity controlled by the same 110000410283 Research (Beijing) Co. China controlling entity by means Sotio N.V. 022 Ltd of an ownership interest

Entity controlled by the same Sotio N.V. 34302290 Netherlands controlling entity by means PPF Group N.V. of an ownership interest

Entity controlled by the same Until 22 British Virgin PPF Real Estate Standish Holdings Ltd. 1870560 controlling entity by means December Islands Holding B.V. of an ownership interest 2016

Entity controlled by the same Celestial STEPHOLD LIMITED HE 221 908 Cyprus controlling entity by means Holdings Group of an ownership interest Limited

Entity controlled by the same STINCTUM HOLDINGS SALEMONTO HE 177 110 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

Vixon Resources Entity controlled by the same Limited SUNDOWN FARMS controlling entity acting in HE 310 721 Cyprus LIMITED concert by means of an ownership interest

Chelton Properties Limited

Entity controlled by the same Czech controlling entity acting in SUNDOWN Sundown s.r.o. 242 60 479 Republic concert by means FARMS LIMITED of an ownership interest

36

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same SYLANDER CAPITAL HE 316 597 Cyprus controlling entity by means Home Credit B.V. LIMITED of an ownership interest

Entity controlled by the same TALPA ESTERO HE 316 502 Cyprus controlling entity by means Home Credit B.V. LIMITED of an ownership interest

Entity controlled by the same TANAINA HOLDINGS TOLESTO HE 318 484 Cyprus controlling entity by means LIMITED LIMITED of an ownership interest

Entity controlled by the same TANFORD LIMITED HE 167 324 Cyprus controlling entity by means Ing. Petr Kellner of an ownership interest

KARMION Entity controlled by the same HOLDINGS TAPADEO LIMITED HE 341 777 Cyprus controlling entity by means LIMITED of an ownership interest

FIGERA LIMITED

Entity controlled by the same Eastern TELISTAN LIMITED HE 341 864 Cyprus controlling entity by means Properties B.V. of an ownership interest

Entity controlled by the same PPF Real Estate Until 31 May TENACITY LIMITED HE 180 866 Cyprus controlling entity by means Holding B.V. 2016 of an ownership interest

FIGERA LIMITED

Entity controlled by the same Czech O2 Czech Tesco Mobile ČR s.r.o. 29147506 controlling entity by means Republic Republic a.s. of an ownership interest

Entity controlled by the same Tesco Mobile O2 Slovakia, 36863521 Slovakia controlling entity by means Slovakia, s.r.o. s.r.o. of an ownership interest

Entity controlled by the same TIMEWORTH HE 187 475 Cyprus controlling entity by means PPF Group N.V. HOLDINGS LTD. of an ownership interest

37

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same PPF Real Estate TOLESTO LIMITED HE 322 834 Cyprus controlling entity by means Holding B.V. of an ownership interest

FIGERA LIMITED

Entity controlled by the same From 24 Trilogy Park Holding PPF Real Estate 60006609 Netherlands controlling entity by means November B.V. Holding B.V. of an ownership interest 2016

Entity controlled by the same PPF Real Estate Trigon Berlin B.V. 55440916 Netherlands controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same PPF Real Estate Trigon II B.V. 56068948 Netherlands controlling entity by means Holding B.V. of an ownership interest

Entity controlled by the same TROMSON 233665 Cyprus controlling entity by means PPF Group N.V. ENTERPRISES LIMITED of an ownership interest

Entity controlled by the same Celestial UNDERTREA Until 20 July HE 221 285 Cyprus controlling entity by means Holdings Group HOLDINGS LIMITED 2016 of an ownership interest Limited

Entity controlled by the same ANTHIAROSE UNILEAVE LIMITED HE 179 204 Cyprus controlling entity by means LIMITED of an ownership interest

Entity controlled by the same VALMARIE HOLDINGS Until 9 June Corvus Services HE 300 697 Cyprus controlling entity by means LIMITED 2016 Limited of an ownership interest

Entity controlled by the same REPIENO VELTHEMIA LIMITED HE 282 891 Cyprus controlling entity by means LIMITED of an ownership interest

Entity controlled by the same Czech Until 16 PPF Real Estate Vítězné náměstí a.s. 28511441 controlling entity by means Republic March 2016 Holding B.V. of an ownership interest

Entity controlled by the same Ing. Petr Kellner Vixon Resources British Virgin controlling entity acting in 144 18 84 (jednáním ve Limited Islands concert by means shodě) of an ownership interest

38

Identification/ Country of Company name registration Method and means of control Note Controlled via registration number

Entity controlled by the same controlling entity acting in From 21 April Vox Ventures B.V. 65879554 Netherlands PPF Group N.V. concert by means 2016 of an ownership interest

Entity controlled by the same Wilhelminaplein Seven Assets 59494034 Netherlands controlling entity by means (Rotterdam) B.V. Holding B.V. of an ownership interest

Entity controlled by the same Celestial WOODBERRY LIMITED HE 181 999 Cyprus controlling entity by means Holdings Group of an ownership interest Limited

Entity controlled by the same Czech Home Credit Lab Zonky s.r.o. 035 70 967 controlling entity by means Republic N.V. of an ownership interest

39

Home Credit a.s.

Financial Statements for the year ended 31 December 2016

Translated from the Czech original Home Credit a.s. Financial Statements for the year ended 31 December 2016

Contents

Statement of Financial Position 3

Statement of Comprehensive Income 4

Statement of Changes in Equity 5

Statement of Cash Flows 6

Notes to the Financial Statements 7

- 2 -

Home Credit a.s. Statement of Comprehensive Income for the year ended 31 December 2016

2016 2015 Note TCZK TCZK

Interest income 14 323,952 330,820 Interest expense 14 (15,399) (15,558)

Net interest income 308,553 315,262

Fee and commission income 15 239,005 253,125 Fee and commission expense 16 (367,042) (346,207)

Net fee and commission expense (128,037) (93,082)

Gains on disposal of loan receivables 17 977,884 1,360,997 Other operating income 17 192,583 210,466

Operating income 1,350,983 1,793,643

Impairment losses 18 (100,379) (99,712) General administrative expenses 19 (1,056,829) (1,040,057)

Operating expenses (1,157,208) (1,139,769)

Profit before tax 193,775 653,874

Income tax expense 20 (59,986) (146,611)

Net profit for the year 133,789 507,263

Total comprehensive income for the year 133,789 507,263

- 4 - Home Credit a.s. Statement of Changes in Equity for the year ended 31 December 2016

Share Other Retained capital capital earnings Total TCZK TCZK TCZK TCZK

Balance as at 1 January 2016 300,000 344,068 856,954 1,501,022

Dividends to shareholders - - (500,000) (500,000)

Net profit for the year - - 133,789 133,789

Balance as at 31 December 2016 300,000 344,068 490,743 1,134,811

Share Other Retained capital capital earnings Total TCZK TCZK TCZK TCZK

Balance as at 1 January 2015 300,000 344,068 736,188 1,380,256

Dividends to shareholders - - (400,000) (400,000)

Effect of merger (refer to Note2(d)) - - 13,503 13,503

Net profit for the year - - 507,263 507,263

Balance as at 31 December 2015 300,000 344,068 856,954 1,501,022

- 5 - Home Credit a.s. Statement of Cash Flows for the year ended 31 December 2016

2016 2015 Note TCZK TCZK Operating activities Profit before tax 193,775 653,874 Adjustments for: Net interest income 14 (308,553) (315,262) Net gain on disposal of property, equipment and intangible assets (2,307) (2,386) Impairment losses 18 100,379 99,712 Depreciation and amortization 19 36,446 37,068

Net operating cash flow before changes in working capital 19,740 473,006

Change in loans to customers 166,891 (31,025) Change in other assets 241,310 (278,317) Change in other liabilities 120,871 152,964

Cash flows from the operations 548,812 316,628

Interest received 209,183 240,000 Interest paid (14,327) (15,557) Income tax paid (132,009) (51,653)

Cash flows from operating activities 611,659 489,418

Investing activities Proceeds from sale of property, equipment and intangible assets 2,672 2,935 Acquisition of property, equipment and intangible assets (32,630) (25,056) Effect of merger (refer to Note 2(d)) - 13,503

Cash flows from investing activities (29,958) (8,618)

Financing activities Dividends paid to shareholders (500,000) (400,000) Proceeds from banks and other financial institutions 7,014,000 7,375,000 Repayment of amounts due to banks and other financial institutions (6,890,000) (7,310,000)

Cash flows from financing activities (376,000) (335,000)

Net increase in cash and cash equivalents 205,701 145,800

Cash and cash equivalents at 1 January 296,695 150,895

Cash and cash equivalents at 31 December 5 502,396 296,695

- 6 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

1. Description of the Company Home Credit a.s. (“the Company”) was established through demerger of its legal predecessor, Home Credit Finance a.s. The demerger was recorded in the Commercial Register in October 2005 and for financial reporting purposes is effective from 3 January 2005.

With the effective date as of 1 January 2015, the Company merged with Click Credit s.r.o. (“the dissolving company”). The merger was recorded in the Commercial Register on 31 August 2015 (refer to Note 2(d)).

Registered office

Home Credit a.s. Nové sady 996/25 602 00 Brno Czech Republic

Shareholders Country of incorporation Ownership interest (%) 2016 2015

Home Credit B.V. Netherlands 100.00 100.00

The ultimate controlling entity is PPF Group N.V. registered in the Netherlands.

Board of Directors Supervisory Board David Bystrzycki Chairman Pavel Rozehnal Chairman (since July) Luděk Jírů Member Miroslav Zborovský Member Zdeněk Šperka Member David Minol Member (since July) Erich Čomor Chairman (until June)

Principal activities

The principal activity of the Company is the provision of consumer financing to private individuals in the Czech Republic. The onward sales of originated loan receivables represent the major source of revenues of the Company.

On 27 December 2016 the Company submitted an application with CNB for a license of a provider of consumer loan finance in accordance with Act. No. 257/2016 Coll., Consumer Finance Act.

2. Basis of preparation (a) Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union. (b) Basis of measurement The financial statements are prepared on the historic cost basis except for financial instruments at fair value through profit or loss and financial assets available-for-sale that are measured at fair value, if relevant. (c) Presentation and functional currency These financial statements are presented in Czech Crowns (CZK), which is the Company’s functional currency and Company’s reporting currency. Financial information presented in CZK has been rounded to the nearest thousand (TCZK).

- 7 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

2. Basis of preparation (continued) (d) Comparative figures The comparative figures have been regrouped or reclassified, where necessary, on a basis consistent with the current year.

The Company merged in 2015 with Click Credit s.r.o. („the dissolving company”) as a business combination under the common control which was a business combination in which all of the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Such acquisitions are excluded from the scope of IFRS 3.

The effective date of the merger was 1 January 2015 and the merger was recorded in the Commercial Register on 31 August 2015.

(e) Use of estimates and judgments The preparation of the financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historic experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of the judgments about the carrying values of assets and liabilities that cannot readily be determined from other sources. The actual values may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation with the material impact to financial statements, uncertainty and critical judgments that can require adjustments to financial statements in near future, made by management in preparing these financial statements in respect of impairment recognition and fair value measurement is described in Note 3c (iv), Note 3c (vii), Note 3f and Note 6.

3. Significant accounting policies (a) Foreign currency transactions A foreign currency transaction is a transaction that is denominated in or requires settlement in a currency other than the functional currency. The functional currency is the currency of the primary economic environment in which an entity operates. For initial recognition purposes, a foreign currency transaction is translated into the functional currency using the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are translated to CZK at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities denominated in foreign currencies, which are stated at historical cost, are translated to CZK at the foreign exchange rate ruling at the date of the transaction. Foreign exchange differences arising on retranslation are recognized in profit or loss. (b) Cash and cash equivalents The Company considers cash in hand and highly liquid financial assets with original maturities of three months or less from the date of acquisition that are subject to an insignificant risk of changes in their fair value, as current accounts and balances with banks and other financial institutions, to be cash and cash equivalents.

- 8 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (c) Financial assets and liabilities (i) Classification The Company classifies all of its financial assets as Loans to customers. Loans to customers are non- derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those that the Company intends to sell immediately or in the near term.

The Company does not hold or issue financial instruments at fair value through profit or loss, held-to- maturity investments nor financial instruments classified as available-for-sale.

The Company classifies all of its financial liabilities as Due to banks and other financial institutions, other than financial guarantees and loan commitments, as measured at amortised cost. (ii) Recognition Financial assets and liabilities are recognized in the statement of financial position on the date on which they are originated. (iii) Derecognition The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any interest in transferred financial assets that is created or retained by the Company is recognized separately as asset or liability.

On derecognition of a financial asset, the difference between the carrying amount of the asset (or the carrying amount allocated to the portion of the asset derecognised) and the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.

The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled or expire. (iv) Measurement A financial asset or liability is initially measured at its fair value. The fair value measurement is increased in case of a financial asset or liability not at fair value through profit or loss by transaction costs that are directly attributable to the acquisition or issue of the financial asset or liability.

Subsequent to initial recognition, loans and receivables are measured at amortized cost less impairment losses. Financial liabilities are measured at amortized cost. Gain or loss is recognized in profit or loss when the financial asset or liability is derecognized or impaired, and through the amortization process. (v) Fair value measurement principles The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability reflects its non-performance risk.

When available, the Company measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

If a quoted market price is not available, the fair value of the instrument is estimated using pricing models or discounted cash flow techniques. Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best estimates and the discount rate is a market related rate at the end of the reporting period for an instrument with similar terms and conditions. Where pricing models are used, inputs are based on market related measures at the end of the reporting period.

- 9 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (vi) Amortized cost measurement principles The amortized cost of a financial asset or liability is the amount in which the financial asset or liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortization using the effective interest rate method of any difference between the initial amount recognized and the maturity amount, net of any relevant impairment. (vii) Identification and measurement of impairment Financial assets not carried at fair value consist principally of loans, balances with financial institutions and other receivables (“loans and receivables”).

The Company assesses whether there is objective evidence that loans and receivables are impaired on a regular basis (and at each reporting date). Financial assets are impaired when objective evidence demonstrates that a loss event has occurred after the initial recognition of the assets, and that the loss event has an impact on the future cash flows of the asset that can be estimated reliably.

The Company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, and individually or collectively for financial assets that are not individually significant (refer to Note 4(a) below). Objective evidence that a financial asset is impaired includes observable data primarily about the delinquency in contractual payments of principal or interest. If the Company determines that no objective evidence of impairment exists for an individually assessed financial assets, whether significant or not, it includes the assets in a group of financial assets with similar risk characteristics and collectively assesses them for impairment. Financial assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment.

The collective allowance for groups of homogeneous loans is established using statistical methods such as roll rate methodology and Markov models. Both models use statistical analysis of historical data on delinquency to estimate the amount of loss. Management applies judgement to ensure that the estimate of loss arrived at on the basis of historical information is appropriately adjusted to reflect the economic conditions and product mix at the reporting date. Roll rates and loss rates are regularly benchmarked against actual loss experience. In assessing the need for collective loss allowance, management considers factors such as credit quality, portfolio size, concentrations and economic factors. To estimate the required allowance, assumptions are made to define how inherent losses are modelled and to determine the required input parameters, based on historical experience and current economic conditions. The accuracy of the allowance depends on the model assumptions and parameters used in determining the collective allowance. In some cases the observable data required to estimate the amount of an impairment loss on a financial asset may be limited or no longer fully relevant to current circumstances. This may be the case when a borrower is in financial difficulties and there is little available historical data relating to similar borrowers. In such cases, the Company uses its experience and judgment to estimate the amount of any impairment loss.

Impairment losses on assets measured at amortised cost are calculated as the difference between the carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate.

All impairment losses in respect of loans and receivables are recognized as an expense in the statement of comprehensive income and are only reversed if a subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognized. Interest on the impaired assets continues to be recognised through the unwinding of the discount.

The Company writes off a loan or a receivable, either partially or in full, and any related allowance for impairment losses, when the Company determines that there is no realistic prospect of recovery.

- 10 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (viii) Offsetting Financial assets and liabilities are set off and the net amount presented in the statement of financial position when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

Income and expenses are presented on a net basis only when permitted by the accounting standards, or for gains and losses arising from a group of similar transactions. (d) Intangible assets (i) Software and other intangible assets Intangible assets, which are acquired by the Company, are stated at cost less accumulated amortization and accumulated impairment losses (refer to Note 3(f) below). (ii) Amortization Amortization is charged to the statement of comprehensive income on a straight-line basis over the estimated useful lives of intangible assets. Intangible assets are amortized from the date the asset is available for use. The depreciation methods, useful lives and residual values, if not insignificant, are reassessed annually. If a material technical improvement is made to an asset during the year, its useful life and a residual value is reassessed at the time a technical improvement is recognized. The estimated useful lives are as follows:

Software 3 years Other intangible assets 3 years (e) Property and equipment (i) Owned assets Items of property and equipment are stated at cost less accumulated depreciation (refer below) and accumulated impairment losses (refer to Note 3(f) below). Cost includes expenditures that are directly attributable to the acquisition of the asset.

When an item of property and equipment comprises major components having varying useful lives, they are accounted for as separate items of property and equipment. (ii) Leased assets Leases in terms of which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Equipment acquired by way of finance lease is stated at an amount equal to the lower of its fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation (refer below) and accumulated impairment losses (refer to Note 3(f) below). Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Property and equipment used by the Company under operating leases, whereby the risks and benefits relating to ownership of the assets remain with the lessor, are not recorded in the Company’s statement of financial position. Payments made under operating leases to the lessor are charged to the statement of comprehensive income over the period of the lease. (iii) Subsequent expenditure Expenditure incurred to replace a component of an item of property and equipment that is accounted for separately, including major inspection and overhaul expenditure, is capitalized. Other subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the item of property and equipment and its cost can be measured reliably. All other expenditure is recognized in the statement of comprehensive income as an expense as incurred.

- 11 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (iv) Depreciation Depreciation is charged to the statement of comprehensive income on a straight line basis over the estimated useful lives of the individual assets. Leased assets are depreciated over the shorter of the lease term and their useful lives. Property and equipment are depreciated from the date the asset is available for use. The depreciation methods, useful lives and residual values, if not insignificant, are reassessed annually. If a material technical improvement is made to an asset during the year, its useful life and a residual value is reassessed at the time a technical improvement is recognized. The estimated useful lives are as follows:

Computers and equipment 3 years Vehicles 3 years Buildings 30 – 50 years (f) Impairment of non-financial assets The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable amount is estimated.

The recoverable amount of non-financial assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

An impairment loss is recognized when the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount.

All impairment losses in respect of non-financial assets are recognized as an expense in the statement of comprehensive income and reversed only if there has been a change in the estimates used to determine the recoverable amount. Any impairment loss reversed is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (g) Provisions A provision is recognized in the statement of financial position if, as a result of a past event, the Company has a present or legal obligation that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (h) Other payables Accounts payable arise when the Company has a contractual obligation to deliver cash or another financial asset. Accounts payable are measured at amortized cost, which is normally equal to their nominal or repayment value. (i) Equity Share capital represents the nominal value of shares issued by the Company.

Dividends to shareholders are recognized as a liability provided they are declared before the end of the reporting period. Dividends declared after the end of the reporting period are not recognized as a liability but are disclosed in the notes.

- 12 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (j) Interest income and expense Interest income and expense are recognized in the statement of comprehensive income using the effective interest method. The effective interest rate exactly discounts the estimated future cash payments and receipts through the expected life of the financial asset or financial liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Company estimates future cash flows considering all contractual terms of the financial instrument, but not future credit losses. The effective interest rate is determined on initial recognition and is not revised subsequently.

The calculation of the effective interest rate includes all fees and amounts paid or received, transaction costs, and all discounts or premiums that are an integral part of the effective interest rate. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability.

The Company estimates the accrued client’s bonuses to POS and cash loans (see Note 12) using the analysis of historical information on delinquency of repayments. The accrued client’s bonuses are recognized and disclosed as a liability to clients and a related expense is deducted from the interest income. (k) Fee and commission income and expenses Fees and commission income and expenses that are integral to the effective interest rate on a financial asset or financial liability are included in the calculation of the effective interest rate.

Other fees and commission income are recognised as the related services are performed. Other fees and commission expense relate mainly to transaction and service fees, which are expensed as the services are received.

Penalty income is recognized in the statement of comprehensive income when the penalty is charged to a customer, taking into account its collectability. (l) Operating lease payments Payments made under operating leases are recognized in the statement of comprehensive income on a straight-line basis over the term of the lease. Granted lease incentives are recognized as an integral part of the total lease expense. (m) Pensions The Government of the Czech Republic is responsible for providing pensions and retirement benefits to the Company’s employees. A regular contribution linked to employees’ salaries is made by the Company to the Government to fund the national pension plans. Payments under these pension schemes are charged as expenses as they are incurred.

- 13 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (n) Taxation Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognized as expense/income except to the extent that it relates to items recognized in other comprehensive income or directly to equity, in which case it is recognized in other comprehensive income or directly in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet method for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit and temporary differences related to investments in subsidiaries, branches and associates where the parent is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the balance sheet date.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the temporary differences, unused tax losses and credits can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

- 14 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

3. Significant accounting policies (continued) (o) New standards and interpretations not yet adopted A number of new Standards, amendments to Standards and Interpretations are not yet effective as at 31 December 2016, and have not been applied in preparing these financial statements. Out of these pronouncements, potentially the ones below will have an impact on the Company’s operations.

IFRS 9 Financial Instruments (effective from 1 January 2018) replaces IAS 39, Financial Instruments: Recognition and Measurement. The standard deals with classification and measurement of financial assets and liabilities, related impairment and hedged accounting. There is an exception for a fair value hedge of an interest rate exposure of a portfolio of financial assets or financial liabilities where entities have choice to apply the hedge accounting requirements of IFRS 9 or continue to apply the existing hedge accounting requirements in IAS 39 for all hedge accounting. Although the permissible measurement bases for financial assets – amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit and loss (FVTPL) – are similar to IAS 39, the criteria for classification into the appropriate measurement category are significantly different. A financial asset would be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, and the asset’s contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding. All other financial assets would be measured at fair value. The standard eliminates the existing IAS 39 categories of held to maturity, available for sale and loans and receivables.

The impairment model in IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ model, which means that a loss event will no longer need to occur before an impairment allowance is recognised. It is generally expected that the new expected credit loss model under IFRS 9 might accelerate the recognition of impairment losses and lead to higher impairment allowances at the date of initial application.

The Company is currently running a group-wide project aimed at thorough analysis and subsequent implementation of the new standard. Business model test and cash flow characteristics test need to be performed by the Company to assess the nature of its business. Further, with the new standard the incurred loss model will be replaced by the expected credit loss model. Upon initial recognition as at 1 January 2018 the effect of changes in the impairment of financial assets will be recognized against equity accounts. Due to complexity of the resulting changes and ongoing implementation, the impact of the initial adoption is currently not quantifiable.

IFRS 15 Revenue from contracts with customers (effective from 1 January 2018). The new Standard provides a framework that replaces existing revenue recognition guidance in IFRS. Entities will adopt a five-step model to determine when to recognise revenue, and at what amount. The new model specifies that revenue should be recognised when (or as) an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. Depending on whether certain criteria are met, revenue is recognised over time, in a manner that depicts the entity’s performance; or at a point in time, when control of the goods or services is transferred to the customer. IFRS 15 also establishes the principles that an entity shall apply to provide qualitative and quantitative disclosures which provide useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.

Although it has not yet fully completed its initial assessment of the potential impact of IFRS 15 on the Company’s financial statements, management does not expect that the new Standard will have material impact on the Company’s financial statements.

IFRS 16 Leases (effective from 1 January 2019) supersedes IAS 17 Leases and related interpretations. The Standard eliminates the current dual accounting model for lessees and instead requires companies to bring most leases on-balance sheet under a single model, eliminating the distinction between operating and finance leases. Under IFRS 16, a contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For such contracts, the new model requires a lessee to recognise a right-of-use asset and a lease liability. The right-of-use asset is depreciated and the liability accrues interest. This will result in a front-loaded pattern of expense for most leases, even when the lessee pays constant annual rentals. The Company is in the process of assessing of the potential impact of the standard pronouncements.

- 15 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management The Company has exposure to the following risks from its use of financial instruments:

• credit risk; • liquidity risk; • market risks.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits set. Risk management policies and systems are reviewed regularly to reflect changes in market conditions, products and services offered. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment, in which all employees understand their roles and obligations. (a) Credit risk Credit risk is the risk of financial loss occurring as a result of default by a borrower or counterparty on their obligation to the Company. The majority of the Company’s exposure to credit risk arises in connection with the provision of consumer financing to private individual customers, which is the Company’s principal business. The Company classifies the loans to individual customers into several classes where the significant ones are cash loans, car loans, point-of-sale (“POS”) loans and revolving loans. As the Company’s consumer loan portfolio consists of a large volume of loans with relatively low outstanding amounts, it does not comprise any individually significant items.

The Board of Directors has delegated responsibility for the management of credit risk to the Credit Committee. A separate Credit Risk Department, reporting to the Credit Committee, is responsible for oversight of the Company’s credit risk, including:

• Formulating credit policies in cooperation with business departments; • Establishing the authorization structure for the approval and renewal of credit facilities; • Reviewing and assessing credit risk; • Limiting concentrations of credit exposures; • Developing and maintaining the Company’s risk scoring; • Reviewing compliance of business units with agreed exposure limits; • Providing advice, guidance and specialist skills to business departments to promote best practice throughout the Company in the management of credit risk.

- 16 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (a) Credit risk (continued) Exposure to credit risk The carrying amount of loans and advances represents the maximum accounting loss that would be recognized at the balance sheet date if counterparties failed to perform completely as contracted and any collateral or security proved to be of no value. The amount therefore greatly exceeds expected losses. Refer also to Notes 6 and 10 for details on outstanding unpaid sold receivable from related parties and to Note 21 for outstanding loan commitments that may impact credit risk analysis.

Loans to customers Note 2016 2015 TCZK TCZK Individually impaired Gross amount 45,452 27,246

Allowance for impairment 6 (2,738) (2,437)

Carrying amount 42,714 24,809

Not impaired 44,825 51,924

Carrying amount 87,539 76,733

Collectively impaired Gross amount 3,024,303 3,121,204 Current 1,487,633 1,661,653 Past due 1 – 90 days 74,682 67,876 Past due 91 – 360 days 80,713 86,895 Past due more than 360 days 1,381,275 1,304,780

Allowance for impairment 6 (1,552,883) (1,486,493) Current (94,369) (94,639) Past due 1 – 90 days (15,522) (20,223) Past due 91 – 360 days (64,971) (67,893) Past due more than 360 days (1,378,021) (1,303,738)

Carrying amount 1,471,420 1,634,711

Total carrying amount 6 1,558,959 1,711,444

- 17 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (b) Liquidity risk Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations from its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The finance department collects information from other departments regarding the liquidity profile of their financial assets and liabilities and details of other projected cash flows arising from projected future business. Portfolio of short-term liquid assets is maintained to ensure sufficient liquidity. The daily liquidity position is monitored and regular liquidity stress testing is conducted under a variety of scenarios covering both normal and more severe market conditions.

The Company has access to a diverse funding base. Funds can be raised using a broad range of instruments including bank loans, bond issues, regular sales of receivables, inter-company loans and contributions by shareholders. Shareholder’s support is an important aspect in the liquidity management of the Company. This enhances funding flexibility, limits dependence on any other funding and generally lowers the cost of funds.

- 18 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (b) Liquidity risk (continued)

2016 2015

TCZK Less than 3 months 1 to 5 More than Less than 3 months 1 to 5 More than 3 months to 1 year years 5 years Total 3 months to 1 year years 5 years Total Financial assets by type

Cash and cash equivalents 502,396 - - - 502,396 296,695 - - - 296,695 Loans to customers 829,413 194,448 434,623 100,475 1,558,959 851,810 261,360 494,126 104,148 1,711,444

Total 1,331,809 194,448 434,623 100,475 2,061,355 1,148,505 261,360 494,126 104,148 2,008,139

Financial liabilities by type

Due to financial institutions (582,599) (195,952) (37,000) - (815,551) (620,435) (70,044) - - (690,479)

Total (582,599) (195,952) (37,000) - (815,551) (620,435) (70,044) - - (690,479)

Net balance sheet position 749,210 (1,504) 397,623 100,475 1,245,804 528,070 191,316 494,126 104,148 1,317,660

Loan commitments (3,038,005) - - - (3,038,005) (3,282,405) - - - (3,282,405)

Net position (2,288,795) (1,504) 397,623 100,475 (1,792,201) (2,754,335) 191,316 494,126 104,148 (1,964,745)

The liquidity risk analysis is affected by outstanding contractual commitments to extend credit, which do not necessarily represent future cash requirements, as significant part of these commitments will be terminated or will expire without being drawn (refer to Note 21).

Gross nominal outflows (undiscounted cash flows, which include estimated interest payments) related to the balances due to financial institutions as at 31 December 2016 amount to TCZK 831,840 (31 December 2015: TCZK 691,929).

- 19 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (c) Market risk Market risk is the risk that changes in market prices, such as interest rates or foreign exchange rates will affect the Company’s income, expense or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters.

Exposure to interest rate risk The principal risk to which the Company is exposed is the risk of loss from fluctuations in the future cash flows or fair values of financial instrument because of a change in market interest rates. Interest rate risk is managed principally through monitoring interest rate gaps and by having pre-approved limits for repricing bands. The Finance Department is the monitoring body for compliance with these limits. A summary of the Company’s interest rate gap position is provided below.

The management of interest rate risk against interest rate gap limits is supplemented by monitoring the sensitivity of the Company’s financial assets and liabilities to various standard and non-standard interest rate scenarios. Standard scenarios that are considered presume a 100 basis point parallel fall or rise in all yield curves worldwide. In such case, the equity and the profit for the year ended 31 December 2016 would be approximately TCZK 4,231 higher/lower (the year ended 31 December 2015: TCZK 4,448).

Exposure to foreign currency risk The Company have not been exposed to significant foreign currency risk.

- 20 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (c) Market risk (continued)

2016 2015 TCZK Effective Effective interest Less than 3 months 1 to 5 More than interest Less than 3 months 1 to 5 More than rate 3 months to 1 year years 5 years Total rate 3 months to 1 year years 5 years Total Interest bearing financial assets

Cash and cash equivalents 0.01% 502,043 - - - 502,043 0.01% 296,107 - - - 296,107

Loans to customers, net* 19.37% 829,413 194,448 434,623 100,475 1,558,959 21.29% 851,810 261,360 494,126 104,148 1,711,444

Total interest bearing 1,331,456 194,448 434,623 100,475 2,061,002 1,147,917 261,360 494,126 104,148 2,007,551 financial assets

Due to banks and other 3.02% (630,876) - (184,675) - (815,551) 2.58% (690,479) - - - (690,479) financial institutions

Total interest bearing (630,876) - (184,675) - (815,551) (690,479) - - - (690,479) financial liabilities

*The loans to customers bear interest at a fixed rate.

- 21 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

4. Financial risk management (continued) (d) Capital management The Company considers share capital, other capital, statutory reserve fund and retained earnings a part of the capital. The Company’s policy is to maintain an adequate capital base so as to maintain investor, creditor and market confidence, sustain future development of the business and meet the capital requirements related to its funding.

The Company also maintains capital adequacy in compliance with local regulatory requirements as stated in the Act on Payment Services No. 284/2009, as amended.

(e) Fair values of financial instruments The Company has performed an assessment of fair values of its financial instruments, as required by IFRS 7, which are not carried at fair value as follows:

Carrying Fair value amount

2016 2016 TCZK TCZK

Cash and cash equivalents (Level 1) 502,396 502,396 Loans to customers (Level 3) 1,697,059 1,558,959 Due to financial institutions (Level 2) (815,551) (815,551)

Carrying Fair value amount

2015 2015 TCZK TCZK

Cash and cash equivalents (Level 1) 296,695 296,695 Loans to customers (Level 3) 1,847,876 1,711,444 Due to financial institutions (Level 2) (690,479) (690,479)

Fair value has been determined by discounting the relevant cash flows using current interest rates for similar instruments. Fair value estimates are based on judgments regarding future expected cash flows, current economic conditions, risk characteristics of various financial instruments and other factors.

5. Cash and cash equivalents 2016 2015 TCZK TCZK

Cash in hand 353 588 Current accounts 502,043 296,107

502,396 296,695

- 22 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016 6. Loans to customers

2016 POS loan Cash loan Revolving loan Car loan Loans to receivables receivables receivables receivables corporations Total TCZK TCZK TCZK TCZK TCZK TCZK Collectively impaired Gross amount 424,765 1,237,531 639,681 722,326 - 3,024,303 Current 217,883 559,222 288,879 421,649 - 1,487,633 Past due 1 – 90 days 6,691 44,220 15,093 8,678 - 74,682 Past due 91 – 360 days 11,938 44,335 15,079 9,361 - 80,713 Past due more than 360 days 188,253 589,754 320,630 282,638 - 1,381,275

Allowance for impairment (210,442) (716,232) (333,509) (292,700) - (1,552,883)

Carrying amount 214,323 521,299 306,172 429,626 - 1,471,420

Individually impaired Gross amount - - - - 45,452 45,452

Allowance for impairment - - - - (2,738) (2,738)

Carrying amount - - - - 42,714 42,714

Not impaired - - - - 44,825 44,825

Total carrying amount 214,323 521,299 306,172 429,626 87,539 1,558,959

- 23 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016 6. Loans to customers (continued) 2015 POS loan Cash loan Revolving loan Car loan Leasing Loans to receivables receivables receivables receivables receivables corporations Total TCZK TCZK TCZK TCZK TCZK TCZK TCZK Collectively impaired Gross amount 502,644 1,275,642 687,049 645,295 10,574 - 3,121,204 Current 308,561 666,353 346,495 340,244 - - 1,661,653 Past due 1 – 90 days 8,288 28,449 16,538 14,601 - - 67,876 Past due 91 – 360 days 16,746 42,545 14,956 12,648 - - 86,895 Past due more than 360 days 169,049 538,295 309,060 277,802 10,574 - 1,304,780

Allowance for impairment (192,468) (671,899) (322,449) (289,103) (10,574) - (1,486,493)

Carrying amount 310,176 603,743 364,600 356,192 - - 1,634,711

Individually impaired Gross amount - - - - - 27,246 27,246

Allowance for impairment - - - - - (2,437) (2,437)

Carrying amount - - - - - 24,809 24,809

Not impaired - - - - - 51,924 51,924

Total carrying amount 310,176 603,743 364,600 356,192 - 76,733 1,711,444

Collateral is generally not required for customer loans. As at 31 December 2016 only car loans in gross amount of TCZK 693,035 (31 December 2015: TCZK 531,451) were secured by underlying motor vehicles.

- 24 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

6. Loans to customers (continued) In 2009, the Company concluded the receivables sale agreement that provides for the sale of both present and future receivables arising on certain nominated revolving loan accounts which meet predefined eligibility criteria. Further in 2009, the Company concluded the receivables sale agreement that provides for the sale of both present and future POS and cash loan receivables generated by the Company which meet predefined eligibility criteria. In 2013, the Company concluded the receivables sale agreement that provides for the sale of both present and future car loan receivables generated by the Company which meet predefined eligibility criteria. Receivables are sold on a regular basis at a fixed price above their face value which is regularly negotiated between the parties on the arm’s length basis.

During 2016, the revolving loan receivables of TCZK 6,670,609 (2015: TCZK 5,108,394), POS and cash loans receivables of TCZK 2,873,494 (2015: TCZK 3,247,763) and car loans receivables of TCZK 645,165 (2015: TCZK 573,803) were sold to a related party.

2016 2015 Analysis of movements in allowance for impairment Note TCZK TCZK

Balance as at 1 January 1,488,930 1,404,523 Impairment losses recognized in the statement 18 100,363 99,714 of comprehensive income Additions resulting from merger (refer to Note 2(d)) - 3,882 Net amount related to loans written off, including recoveries (33,672) (19,189)

Balance as at 31 December 1,555,621 1,488,930

The loans to customers are subject to estimation uncertainty as the identification on the individual contract level is not practical due to their large volume. The Company has estimated the impairment on loans to customers in accordance with the accounting policy described in Note 3(c). Changes in collection estimates could significantly affect the impairment losses recognized.

The Company recognises the collective impairment losses based on the probability of default and loss given default (“LGD”). A change of the LGD parameter by +/- 10%, would result in a change in the allowance for impairment as at 31 December 2016 by +/- TCZK 7,101 (2015: TCZK 11,742).

7. Deferred tax assets and liabilities The Company’s applicable tax rate for deferred tax is 19% (2015: 19%). Deferred tax assets and liabilities are attributable to the following items:

Assets Liabilities Net 2016 2015 2016 2015 2016 2015 TCZK TCZK TCZK TCZK TCZK TCZK

Loans to customers 4,063 8,180 - - 4,063 8,180 Accrued employee compensation 6,584 7,010 - - 6,584 7,010 Carrying value of property and equipment 1,908 1,780 - - 1,908 1,780 Other assets 974 20 - - 974 20

Deferred tax assets 13,529 16,990 - - 13,529 16,990

Net deferred tax assets 13,529 16,990

The net decrease in deferred tax balance in amount of TCZK 3,461 (2015: TCZK 5,539) was recognised as

expense in profit or loss (refer to Note 20).

- 25 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

8. Intangible assets Other 2016 intangible Software assets Total TCZK TCZK TCZK Acquisition cost Balance at 1 January 2016 116,637 12,099 128,736 Additions 23,077 - 23,077 Disposals (619) - (619)

Balance at 31 December 2016 139,095 12,099 151,194

Accumulated amortization Balance at 1 January 2016 90,372 12,059 102,431 Additions 19,973 20 19,993 Disposals (619) - (619)

Balance at 31 December 2016 109,726 12,079 121,805

Carrying amount

at 1 January 2016 26,265 40 26,305 at 31 December 2016 29,369 20 29,389

Other 2015 intangible Software assets Total TCZK TCZK TCZK Acquisition cost Balance at 1 January 2015 128,260 21,524 149,784 Additions 15,214 - 15,214 Additions from merger (refer to Note 2(d)) 2,878 99 2,977 Disposals (39,239) - (39,239) Transfers 9,524 (9,524) -

Balance at 31 December 2015 116,637 12,099 128,736

Accumulated amortization Balance at 1 January 2015 102,793 12,000 114,793 Additions 21,165 20 21,185 Additions from merger (refer to Note 2(d)) 899 39 938 Disposals (34,485) - (34,485)

Balance at 31 December 2015 90,372 12,059 102,431

Carrying amount

at 1 January 2015 25,467 9,524 34,991 at 31 December 2015 26,265 40 26,305

- 26 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

9. Property and equipment Other 2016 tangible Buildings Equipment Vehicles assets Total TCZK TCZK TCZK TCZK TCZK Acquisition cost Balance at 1 January 2016 15,073 37,487 48,196 - 100,756 Additions 379 2,528 6,645 - 9,552 Disposals (271) (47) (6,370) - (6,688)

Balance at 31 December 2016 15,181 39,968 48,471 - 103,620

Accumulated depreciation Balance at 1 January 2016 1,897 26,826 32,475 - 61,198 Additions 1,593 4,968 9,892 - 16,453 Disposals (271) (47) (6,006) - (6,324)

Balance at 31 December 2016 3,219 31,747 36,361 - 71,327

Carrying amount

at 1 January 2016 13,176 10,661 15,721 - 39,558 at 31 December 2016 11,962 8,221 12,110 - 32,293

Other 2015 tangible Buildings Equipment Vehicles assets Total TCZK TCZK TCZK TCZK TCZK Acquisition cost Balance at 1 January 2015 14,842 47,888 48,485 330 111,545 Additions 231 3,270 8,828 - 12,329 Additions from merger (refer to Note 2(d)) - 382 - - 382 Disposals - (14,383) (9,117) - (23,500) Transfers - 330 - (330) -

Balance at 31 December 2015 15,073 37,487 48,196 - 100,756

Accumulated depreciation Balance at 1 January 2015 463 36,166 31,483 - 68,112 Additions 1,434 4,889 9,560 - 15,883 Additions from merger (refer to Note 2(d)) - 153 - - 153 Disposals - (14,382) (8,568) - (22,950)

Balance at 31 December 2015 1,897 26,826 32,475 - 61,198

Carrying amount

at 1 January 2015 14,379 11,722 17,002 330 43,433 at 31 December 2015 13,176 10,661 15,721 - 39,558

- 27 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

10. Other assets 2016 2015 TCZK TCZK

Prepaid expenses 565,842 529,645 Outstanding selling price of receivables 312,029 523,589 Accounts receivable 99,754 165,705 Other 1,216 1,216

978,841 1,220,155

Specific allowances for impairment of accounts receivable (156) (144)

(156) (144)

978,685 1,220,011

Prepaid expenses are represented by prepaid development fee for operational system and further by commissions paid to retailers. 2016 2015 Analysis of movements in allowances for impairment Note TCZK TCZK

Balance as at 1 January 144 146 Impairment losses recognized in the statement 18 16 (2) of comprehensive income Amount related to loans written off (4) -

Balance as at 31 December 156 144

11. Due to banks and other financial institutions

Unsecured bank loans Interest Final Amount outstanding rate maturity 2016 2015

TCZK TCZK PRIBOR January Term loan facility of TCZK 620,000 + margin 2017 530,924 620,435 PRIBOR October Term loan facility of TCZK 200,000 + margin 2017 99,952 70,044 November Term loan facility of TCZK 184,000 Fixed rate 2018 184,675 -

815,551 690,479

- 28 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

12. Other liabilities 2016 2015 TCZK TCZK

Liabilities due to customers 534,575 477,790 Accrued expenses 438,548 408,456 Accounts payable 171,757 141,900 Accrued employee compensation 73,599 69,015 Other taxes payable 6,432 4,866 Deferred income 2,834 4,847

1,227,745 1,106,874

Out of accrued expenses stated above the amount of TCZK 371,438 (2015: TCZK 324,308) represents accrued client’s bonuses dependent on timely repayment of respective POS and cash loans.

13. Equity As at 31 December 2016 the issued share capital comprised 300 ordinary shares (31 December 2015: 300 ordinary shares) with a nominal value of CZK 1,000,000 each.

All issued shares have been fully paid and bear equal voting rights. The holders of shares are entitled to receive dividends when declared.

In March 2016 the sole shareholder approved the distribution of retained earnings in the form of a dividend in the amount of CZK 1,666,666 per each share, totaling to TCZK 500,000.

In February 2015 the sole shareholder approved the distribution of retained earnings in the form of a dividend in the amount of CZK 1,333,333 per each share, totaling to TCZK 400,000.

14. Interest income and interest expense 2016 2015 TCZK TCZK Interest income Cash loan receivables 129,900 133,401 Revolving loan receivables 83,828 70,874 POS loan receivables 54,301 59,762 Car loan receivables 54,230 64,786 Other 1,693 1,997

323,952 330,820

Interest expense Liabilities to banks and other financial institutions 15,399 15,558

15,399 15,558

- 29 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

15. Fee and commission income 2016 2015 TCZK TCZK

Customer payment processing and account maintenance 101,463 116,168 Penalty fees 54,225 49,374 Cash transactions 42,287 53,158 Insurance commissions 41,030 34,425

239,005 253,125

16. Fee and commission expense 2016 2015 TCZK TCZK

Commissions to retailers 316,976 297,615 Cash transactions 34,399 34,905 Payment processing and account maintenance 15,667 13,687

367,042 346,207

17. Operating income 2016 2015 TCZK TCZK

Gains on disposal of loan receivables Revolving loan receivables 563,932 746,131 POS loan, cash loan and car loan receivables 413,952 614,866

977,884 1,360,997

Other operating income Fees for servicing of receivables sold 116,047 120,892 Other 76,536 89,574

192,583 210,466

18. Impairment losses 2016 2015 Note TCZK TCZK

Cash loan receivables 58,118 51,953 POS loan receivables 24,533 33,450 Revolving loan receivables 19,379 20,932 Car loan receivables (1,968) (3,986) Other receivables 301 (2,635)

Loans to customers 6 100,363 99,714

Other assets 10 16 (2)

100,379 99,712

- 30 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

19. General administrative expenses 2016 2015 TCZK TCZK

Employee compensation 309,644 292,655 Payroll related taxes (including pension contributions) 94,516 89,159 Information technologies 175,266 156,258 Advertising and marketing 147,537 164,070 Professional services 106,127 90,865 Telecommunication and postage 104,331 122,061 Depreciation and amortization 36,446 37,068 Occupancy 30,028 26,096 Travel expenses 16,555 16,961 Other 36,379 44,864

1,056,829 1,040,057

20. Income tax expense 2016 2015 TCZK TCZK

Corporate income tax for current year 53,695 138,207 Correction related to prior periods 2,830 2,865

Current tax expense 56,525 141,072 Deferred tax expense (refer to Note 7) 3,461 5,539

Total income tax expense in the statement of comprehensive income 59,986 146,611

Reconciliation of effective tax rate 2016 2015 TCZK TCZK

Profit before tax 193,775 653,874

Income tax using the domestic tax rate of 19% (2015: 19%) (36,817) (124,236) Non-deductible expenses (24,080) (27,010) Corrections related to previous years (2,830) (2,865) Tax exempt revenues 3,741 4,814 Utilized tax loss of the dissolving company (refer to Note 2(d)) - 2,686

Total income tax expense (59,986) (146,611)

The tax receivable as at 31 December 2016 amounted to TCZK 62,856 (2015: tax liability TCZK 12,628). The effective tax rate amounted to 31.0% (2015: 22.4%).

- 31 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

21. Future commitments Loan commitments The Company has outstanding contractual commitments to extend credit. These commitments take the form of approved credit limits related to customer’s revolving loan accounts, POS loan facilities, cash loan facilities and car loan facilities. 2016 2015 TCZK TCZK

Revolving loan commitments 2,967,193 3,200,558 POS loan commitments 34,830 40,755 Cash loan commitments 32,956 38,789 Car loan commitments 3,026 2,303

3,038,005 3,282,405

The total outstanding contractual commitments to extend credit disclosed above do not necessarily represent future cash requirements, as many of these commitments will be terminated or will expire without being drawn.

22. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: 2016 2015 TCZK TCZK

Less than one year 30,843 20,129 Between one and five years 30,886 39,342

61,729 59,471

The Company leases a number of premises and equipment under operating lease. Lease payments are usually adjusted annually to reflect market rentals. None of the leases includes contingent rentals.

During the year 2016 TCZK 31,324 (2015: TCZK 29,518) was recognized as an expense in the statement of comprehensive income in respect of operating leases.

- 32 - Home Credit a.s. Notes to the Financial Statements for the year ended 31 December 2016

23. Related party transactions (a) Transactions with the parent company and fellow subsidiaries There were no relations with the parent company either in 2016 or 2015.

The Company is a related party to its ultimate parent company PPF Group N.V., its parent company Home Credit B.V. and their subsidiaries.

Amounts included in the statement of financial position in relation to transactions with fellow subsidiaries are as follows: 2016 2015 Note TCZK TCZK

Cash and cash equivalents 5 273,678 96,840 Other assets 10 573,075 830,672 Due to banks 11 (184,675) - Other liabilities 12 (48,269) (33,269)

613,809 894,243

Amounts included in the statement of comprehensive income in relation to transactions with fellow subsidiaries are as follows: 2016 2015 Note TCZK TCZK

Interest income 14 11,823 10,696 Interest expense 14 (675) - Fee and commission income 15 15,605 20,404 Fee and commission expense 16 (7,195) (6,927) Gains on disposal of loan receivables 17 977,884 1,397,080 Other operating income 17 126,772 131,216 General administrative expenses 19 (152,656) (120,937)

971,558 1,431,532 (b) Transactions with key management personnel Amounts included in the statement of comprehensive income in relation to transactions with members of key management are short-term benefits comprising salaries and bonuses in amount of TCZK 33,913 (2015: TCZK 28,699). The key management personnel of the Company comprise the members of the Board of Directors and the Supervisory Board.

- 33 -