“Business Opportunities in Moldova”“Banking sector”

“Business opportunities”

May 15th, 2015

Ridha Tekaia,

president of CB “MOBIASBANCĂ – Groupe Société Générale” S.A.

and Foreign Investors Association

|15/05/2015 P.2

Financial System Structure, Moldova

I S S U E SM E D I A

M A C R O 2015

GDP

-1%in 2015

Inflation

Prices

+7.4%in 2015

Foreign Direct Investments Remittances Import/Export

POOR JUSTICE SYSTEM

CORRUPTION

GEOPOLITICAL TENSIONS

Banking sector and Investment Climate perception

|12/02/2013 P.4Le financement de l’activité commerciale et des investissements

• Well managed banking sector is growing ~ 10% ROE

• Good banking sector reflects a dynamic in Real Economy !

• GDP growth expectations:

Banking system evolution, 2013-2014

Moldova -1%(IMF); - 2% (WB)

Ukraine -5,5% (IMF); - 7,5 (WB)

Russia -3,5% (IMF); - 5,0 (EBRD)

Romania +2,7% (IMF)

Export CIS 20%/Total when export

to EU ↗ +6.7% in Q1/2015

|

Moldova: Investment opportunities 2014 Foreign Trade ($ mln)

P.5

Exports

Imports

EU (European Union)

1246 (�10% vs. 2013)

2568(�4% vs. 2013)

CIS CIS(Commonwealth of Independent States)

736(� 20% vs. 2013)

1449(� 13% vs. 2013)

Source: National Bureau of Statistics

Moldova

� Imports: oil products, energy

� Exports: equipment, electrical devices, cables, textiles, furniture, fruits and vegetables

� Imports: gas, food products

� Exports: wine, fruits and vegetables, cereals

A platform for access to both EU and CIS area

15/05/2015

| P.6

Moldova: Investment opportunities Key sectors of the economy

An open and diversified economy

Widespread sectors of activity in

process of consolidation

Trade; 16%

Agriculture; 15%

Manufacturing industry; 14%

Transport and communication

s; 12%

Real estate; 11%

Education; 7%Financial intermediation;

6%

Health and social work;

5%

Construction; 4%

Other; 7%

Energy; 2%

Hotels and restaurants;

1%

Added-value (GDP structure)

� Agriculture and food industry:

� Construction and Infrastructure:

� Trade:

� Telecommunications and IT:

� Industry:

� Gas, energy:

� Textiles , leather and footwear:

� Public sector:

Source: National Bureau of Statistics

15/05/2015

|

Foreign Investors Association (FIA)

AIM

To support and improve

investment climate and

business environment, providing advocacy and representation

services for its members

About FIA

Association of the leading foreign investors in Moldova

Founded in 2003

Members- multinational companies

15/05/2015

| P.8

Moldova: Investment opportunities Reasons to invest

Cheap labor force:

• Average salary: 224 EUR (China – 187 EUR);

• Social contributions: 26.5% in Moldova (including

6% which are compensated by the Government in

the rural sector); 27.75% in Romania, 32-37% in

China;

• Skilled and multilingual workforce;

Improving business environment:

• Strong commitment for the European Integration

(funding programs of IFIs);

• Regular reforms (justice, financial sector, health,

education, etc.).

• No visas for EU and CIS citizens;

• Access to the property;

Favorable tax system

• Income tax: 12%;

• 50% discount on income taxes, 0% VAT in the Free

Economic Zones;

• Access to the EU and CIS markets; Autonomous Trade

Preferences (ATP) for commercial exchanges with the

EU; bilateral free exchange agreements with the CIS

countries

Central geographical area:

• An exchange bridge between two zones (EU - 500

million people / CIS - 275 million people);

• Maritime access (Danube Delta - Port Giurgiulesti);

• Renovation program for roads and railways (IFI

funding)

Professional formation to improve, negative

migration flows

Income tax was 0% until 2012; complex

mechanism of recovery of VAT

Still heavy administration, intellectual property

protection to improve

Road and rail infrastructure still failing, high cost

of utilities

15/05/2015

| P.9

International shareholders:

�Société Générale – 67.85%;

�BRD – Groupe Société Générale – 20%;

�European Bank for Reconstruction and Development – 8.84%;

�Minor shareholders– 3.31%.

MOBIASBANCA – GROUPE SOCIÉTÉ GÉNÉRALE Shareholders

� Established in 1990;

� 6 years of integration to Groupe Société Générale;

� Internal standards corresponding to International Standards (IFRS, Basel II and Basel III - ongoing);

� Strong internal synergies inside the Groupe Société Générale (Romania/Russia);

� Close cooperation with IFI’s (EBRD, IFC, EIB)

� ISO certification in Trade Finance

15/05/2015

| P.10

FINANCING

Trade Finance:- financing of export-import transactions (LCs, international

guaranties, financing of pre-export and post-import transactions);

- discounting of letters of credit;

MO

BIA

SB

AN

CA

Financing of working capital:- revolving lines of credit, financing of permanent working capital;

- factoring (in progress);

Brokerage services: T-bonds, corporate bonds (1000 values listed / Stock exchange , quite reduced liquidity).

Specialized financing of investments:- traditional loans;

- leasing, forfeiting (Moldtelecom forfeting deal);

- cross-border financing (Transoil Club Deal USD 200 mln);

MOBIASBANCA – GROUPE SOCIÉTÉ GÉNÉRALE Full range of products and services

DOCUMENTARY TRANSACTIONSLetters of credit, bank guarantees, collection / processing of documents (import and export), transferable letters of credit and back-to-back, etc..

CASH MANAGEMENT

EXCHANGE TRANSACTIONSFX SPOT, FX FORWARD, direct access to the dealing room

15/05/2015

| P.11

Our values

“Building together team spirit”

Ridha Tekaïa

Président

BC "Mobiasbanca - Groupe Société Générale" S.A.

Tel: +373 22 812101

ridha.tekaia@mobiasbanca.md

15/05/2015