cjcs uzkdb bank+99871 120 80 00 1 v tashkent international investment financial forum 4 – 8 april...

CJCS UzKDB Bank +99871 120 80 00www.kdb.uz

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V Tashkent International Investment Financial Forum

4 – 8 April 2012


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Table of Contents

History of KDB

Overview of KDB Financial Group

UzKDB Bank

RBS NB Uzbekistan CJSC

Vision & Strategy


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Current Structure

KDB Financial Group

KDB Profile

Global Presence

Overview - KDB


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Current Structure

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KDB Financial Group

Daewoo Sec. KDB Capital KDB Asset Mgmt

Government

Korea Finance Corporation 1

100%

90.3%

9.7%

KIAMCOKDB

100% 43% 99.9% 100% 84.2%

(as of March 2012)

KDB Life Insurance

85.05% 2

1 Ownership through any entity in which the government holds more than 50% of its voting rights, construed as ownership by the government.

2 Consists of the 60.35% stake held by SPC and the 24.70% stake held by PEF


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KDB Financial Group

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- Established : Oct. 28, 2009 - Ownership : 100% Government- Total asset : KRW172 trillion (End of 2011)- Combined strengths of Korea’s leading institutions in the banking, securities, capital, and asset management markets

(End of 2011, Consolidated Basis)

100%

Business areas-Lease-Venture Capital-Factoring

Most favored venture capital offering diverse public venture funds and incubation services

Established: Dec. 1972No. of Offices : 4Asset Size : KRW 2.8trn

Business areas-Retail -Investment Banking -Wealth Management-Trading

Uncontested position in the domestic capital marketHighest M/S in brokerage and primary market

Established: Sep. 1970No. of Offices : 131Asset Size : KRW 21trn

43%

Business areas-Infrastructure & Special Assets Fund Management

Korea’s first and largest asset management company specializing in infrastructure funds & alternative investments

Established: Oct. 2003No. of Offices : 1Asset Size : KRW 18.1bn

84.2%99.9%

Business areas- Asset Management (equity/bond/hybrid funds)

-Trust Management-Investment Advisory

Comprehensive asset managementTop 10 in AUM

Established: Jul. 1996No. of Offices : 1Asset Size : KRW 80.5bn

Business areas-Corporate Banking-Investment Banking-Corporate Restructuring-Consulting & Research-Retail Banking

Established leader in domestic corporate banking with global competitiveness in investment banking

No. of Employees : 2,465No. of Offices : 73 (Including overseas)Asset Size : KRW 149trn (End of 2011)

100% Owned by the government through KDB FG


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KDB Profile

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Quasi Sovereign

Status

100% Government owned (Includes indirect ownership) Government responsible for maintaining KDB’s solvency under the KDB Act Strong intention of Government to nurture KDB into a Global Financial Services Institution

Pioneered development of Korea’s financial industry Accumulated financial know-how in Corporate & Investment Banking Window for foreign currency funding

Expertise & Know-how

Credit Rating

Moody’s S&P Fitch R&I

Effective Apr. 14. 10 Oct. 28. 09 Sep. 9. 09 Oct. 30. 09

Rating (ST) A1 (P-1) A (A-1) A+ (F1) A+ (a-1)

Solid Capital

Asset Size & Composition (Unit: KRW bil.)

BIS Ratio : 15.48% Tier 1 : 14.58%

(27%)

(60%)


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Global Presence

New York

London

TokyoShanghai

Asia

Europe

South Pacific

Africa

South America

North America

Guangzhou

Singapore

Sao Paulo

Ireland

Hungary

Tashkent

Frankfurt

Beijing

Seoul (HQ)

Hong Kong

Domestic: 60 branches

Overseas: 7 branches (New York, London, Tokyo, Singapore, Shanghai, Guangzhou, Beijing) 5 subsidiaries (Hong Kong, Hungary, Brazil, Ireland, Uzbekistan)2 representative offices (Frankfurt, Shenyang)

Branch

Subsidiary

Representative office

Headquarters

Shenyang


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Vision & Strategy

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Raise Competitiveness

＞ Enhance Financial Structure

＞ Increase Profitability and Competence in Core Business Areas

＞ Expand Deposit Base

Vision 20-20-20

Globally Competitive CIB

Phase 2: Global Top 20 Financial Group

Phase 1: Asia Top 20 Financial Group

Core Business Corporate Banking

Investment Banking

Asset Management

UzKDB Bank

32, Oybek Street, Mirabad District, 100015 Tashkent, UzbekistanSWIFT: UZDAUZ22


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Why KDB invests in Uzbekistan financial market(Purchase of UzDaewoo Bank and RBS Uzbekistan)

Political and economic stability in the country; Attractive business environment; Enhanced legislative and regulatory system created

by the government agencies, including CBU; Expansion of business in Central Asia as a new

financial market; Strong will to participate in the great changes in

Uzbekistan by contributing to the development of its financial market and economy as a whole.


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Mission

UzKDB BankUzKDB BankUzKDB BankUzKDB Bank

…always moving forward…

reputationof stable

& reliable Financial

institution

a full range a full range high quality high quality

banking banking servicesservices

wide rangeof strong

customers stretching from

entrepreneurs to business elite

creating creating value-added value-added

businessbusinessopportunitiesopportunities

& new banking & new banking servicesservices


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UzDaewoo Bank was recreated on May 5, 2006 as UzKDB Bank (Uzbekistan-Korea Development Bank) and starting from this day the Bank is engaged in its activity on the basis of License # 5 issued by the Central Bank of the Republic of Uzbekistan.

UzKDB Bank is the successor UzDaewoo Bank, which was founded in 1997 as part of the international expansion of Daewoo Group and its financial department Daewoo Securities.

During this period Board of the Bank worked on enlargement of Bank’s activity and reinforcement of financial statements. The total capital is increased by 24.7 % during 2011 and amounted in USD 34.0 million at the end of FY 2011.

From Foundation to Present (i)

1997-2006 2006 2006 – up to present


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From Foundation to Present (ii)

Ownership structure:

Shareholders:

Assets: Total Equity:Branches:Mini-banks:Audit company:

Closed Joint Stock Company

Korea Development Bank (61.11 %) EBRD (27.78 %) NBU (5.56 %) JSC Turon Bank (5.56 %)

418.0 mln. in USD equivalent 34.0 mln. in USD equivalent 1 2 Ernst & Young, Tashkent

UzKDB Bank (latest data)UzKDB Bank (latest data)UzKDB Bank (latest data)UzKDB Bank (latest data)


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Business overview

UzKDB Bank offers comprehensive financial services across diverse areas based on qualified experience. Our Bank's business profile is primarily oriented to corporate clients and banking services to corporate clients who provide the main part of assets and profits of the bank.

UzKDB Bank Services

Internationalpayments

andVisa services

Loanoperation

s

Export & Import

Operations

TreasuryServices

LocalTransaction

sServices

Conversionand

Remittance

Services

Local Plastic Cards

Services


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Business overview: Correspondent relations

Our Bank established strong and reliable relationships with highly reputable commercial banks in Europe, Asia, USA, CIS countries and successfully conducts correspondent relations in different currencies.

Our main correspondent banks are: JP Morgan Chase (USA) Commerzbank AG (Germany) KEB Seoul (Republic of Korea) VTB Bank (Russian Federation) NBU (Uzbekistan) etc.

Based on our extensive financial know-how and using the global network of KDB Seoul we are continuing our international expansion and cooperation in order to give a solid support to our customers in their international operations.


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Business overview: Comparative advantage

UzKDB Bank is a safe bank, because of: Conservative Credit Policy;

Well established Assets and Liabilities management;

The limits for interbank placements are set by KDB Headquarters based in Seoul;

Unlike other local banks in Uzbekistan, UzKDB Bank has an access for analysis of financial institutions carried out by KDB, and has competitive knowledge about the situation in international markets;

FX position of the bank is positive and stable;

UzKDB Bank makes interbank placements only with first class international banks with highest investment ratings and carries out periodical analysis of counterparty banks.


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Main financial indicators

Items Unit FY2011 FY2006 % Increase

Financial Position

Total Assets UZS mln 752,087.4 85,458.9 780.1

Total Liabilities UZS mln 689,973.7 66,807.8 932.8

Total Equity UZS mln 62,113.7 18,651.1 233.0

Income statement

Operating Income UZS mln 26,107.5 9,447.0 176.4

Operating expenses UZS mln 13,909.5 4,449.1 212.6

Profit before income tax UZS mln 12,197.9 4,997.9 144.1

Income tax UZS mln 2,798.1 1,037.9 169.6

Net Profit UZS mln 9,399.9 3,960.0 137.4


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RBS Uzbekistan

History of RBS Uzbekistan

Bank’s Profile Financial performance

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77, Nasirova street, Yunus Abad District, 100084 Tashkent, UzbekistanSWIFT: KODBUZ22


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History of RBS Uzbekistan

1996 - Founded as ABN AMRO Bank NB Uzbekistan A.O.

2008 - Renamed to RBS NB Uzbekistan CJSC subsequent to the global acquisition by The Royal Bank of Scotland Group

2009 - RBS Uzbekistan – Award “Best Bank in Uzbekistan” by Euromoney magazine

2010 - RBS Group agrees to sell RBS Uzbekistan to Korea Development Bank

2011 - KDB acquired majority stake in RBS Uzbekistan and the Bank (Nov) became part of KDB Financial Group

The name “RBS NB Uzbekistan CJSC” is used under Transitional Trade Mark License Agreement signed with RBS Group

Shareholders are: KDB – 82.35% and NBU – 17.65%.

RBS Uzbekistan has advanced Relationship Management service compared to other

banks

The Bank implements enhanced Know Your Client Policy and advanced operating system

leading to efficient risk management

Corporate customer segmentation

Subsidiaries/joint venture companies of multinational companies and large local enterprises

Small businesses, representation offices of international companies and diplomatic missions

Corporate staff and card accounts

Sector of economy

Integrated energy

Automotive

Telecommunication

Textile and etc

Bank’s profile

Product offering

Transaction Banking - current accounts, trade finance, physical cash, bank transfers,

international clearing, collection services

Treasury - currency exchange, money market instruments, trading, plain vanilla

derivatives

Credit Structuring - overdrafts and loan facilities

Principal Member of MasterCard International Payment System, fully authorized for

issuance and acquiring of MC cards. Licensed by Visa International as an Affiliate

Member

Bank’s profile (continued)

Volume of Assets and Equity (UZS mln)

Total assets remained almost the same while the bank tightly controlled its cost base

In 2011, the Bank increased the capital base by injecting the retained earnings (UZS 12 bln) of the previous years into share capital

Description FY 2011 FY 2010 FY 2009

Total assets 539,627 543,097 551,734

Total equity 41,527 36,544 31,312

Financial Performance


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Vision & Strategy

Vision

Strategy


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By acquiring previously UzDaewoo bank and later RBS Uzbekistan, KDB wants to expand its business activities in Uzbekistan and to contribute more to economic prosperity by sharing and combining KDB’s accumulated banking service know-how, advanced financial knowledge as well as the expertise as a leading Asian bank

In late 2012, KDB will integrate RBS NB Uzbekistan with UzKDB Bank as soon as all required actions would be taken to enhance the management efficiency and empower the synergy of resources belonging to both banks

In the long term, KDB wants to grow its presence in Central Asia

Vision


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New Bank (after merging UzKDB and RBS Uzbekistan) will continue to serve clients with current valuable employees at the same service level by maintaining best internationally banking practices

The bank will continually and progressively contribute to the economic growth of Uzbekistan by: contributing to Uzbekistan’s financial market development through

performance of advanced universal banking services provision of consulting and financial services for social sphere and

natural resources development engagement in other banking business activities

Vision (continued)


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Main focus will continue to be on existing and new clients

Pro-actively cross-selling products

Increasing the loan portfolio prudently by providing credit facilities to clients with sufficient cross selling products

Developing strong leadership positions in trade business (import finance, discounted L/Cs, LGs) and commodity finance & trading

Delivering comprehensive regional and domestic cash management solutions, payment & collection services for clients

Continue delivering comprehensive cash/salary arrangement solutions

Proceeding with initiatives on attracting physical cash in local currency

Launching FX swap, FX options and other “plain vanilla” derivatives instruments with a proposal of managing and hedging foreign currency and commodity risks for customers

Expand cooperation with local financial institutions on money and foreign exchange markets

Strategy


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THANK YOU!

We hope your prosperity with investment in Uzbekistan

cjcs uzkdb bank+99871 120 80 00 1 v tashkent international investment financial forum 4 – 8 april...

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