MONETA Money Bank : Extended information for the acquisition of Air Bank Group

Acquisition of Air Bank Group

Supporting material for shareholder meeting to be held on June 22nd, 2021

Published on May 20th, 2021

Updated on May 25th, 2021 (updated for response to shareholder feedback)

OF INSIDE INFORMATION

TABLE OF CONTENT

1 STRATEGIC RATIONALE

UPDATED

• ACQUISITION OVERVIEW

3 BUSINESS CASE

UPDATED

• ANTICIPATED CAPITAL POSITION AT CLOSING

5 CORPORATE GOVERNANCE AND OPERATING MODEL

UPDATED

• KEY RISKS

7 PPF OFFER AND MONETA SHARE PRICE DEVELOPMENT	UPDATED
8 RESPONSE TO SHAREHOLDER FEEDBACK	NEW

• HISTORICAL FINANCIAL RESULTS AND GROWTH RATES

1. COMBINED BUSINESS PLAN - DETAIL
2. KEY MESSAGES

2

ACQUISITION RATIONALE: MID TO LONG TERM VALUE CREATION

The acquisition of Air Bank Group is transformational and unique opportunity to accelerate growth and strengthen returns in medium to long term

INVESTMENT THESIS

TARGETED SHAREHOLDER BENEFITS

• Establishing a leading Czech retail bank
• Increasing customer base to above 2.4 million, the third largest in the Czech Republic
• Increasing competitive capabilities
• • ~25% increase in loan base
  • ~48% increase in deposit base
• Aspiring for strong retail market shares through retail and small business focus
• Targeting CZK 1.8 billion of annual cost synergies by 2025
• Targeting improving recurrent profitability and returns

Reinforced profitability

EPS & DPS Accretive

Based on conservative growth1

Targeting net profit of more than CZK 8.5 billion from 2024 annually

Targeting EPS and DPS Accretion of 15-25% starting from 2024 through 2026

Targeting loan growth of 6.7% and deposit growth of 5.4%

Source: MONETA and Air Bank Group company data. (1) CAGR (2021-2026).

3

STRUCTURAL REALITIES OF CZECH BANKING SECTOR

SIZE AND CONCETRATION ADVANTAGE

MID-SIZED BANKS DILEMAS

MONETA IN CONTEXT OF ITS SIZE

Large banks consistently generate 64% of banking industry's revenues, deploy 64% of Tier 1 capital and produce 70% of net earnings (2017 - 2020).

Their size advantage is not challengeable through organic growth therefore consolidation is the mean how to obtain economies of scale, cost parity and similar capital efficiency.

Medium sized banks generate 18% of banking industry's revenues, deploy 23% of Tier 1 capital and produce 17% of net earnings (2017 - 2020).

Their revenues and profits are challenged by both large and small sized banks as well as through cost considerations. The challenge is formidable in the realm of retail banking.

MONETA managed to increase balance sheet size 2.0times (19% CAGR) through organic growth and Wüstenrot acquisition between 2016 and 2020 to maintain revenues and profits.

MONETA generates 6% of banking industry's revenues, deploy 4% of Tier 1 capital and produces 5% of net earnings (2017 - 2020) due to focus on retail and small business. Pricing and cost pressures create formidable challenges to maintain profit and capital efficiency.

Source: CNB - ARAD. Large banks are considered as banks with a total balance sheet of more than 10% of the total assets of the

banking sector, medium-sized banks between 2-10% of total assets and small banks with a balance sheet less than 2% of the 4 banking sector.

OPERATING INCOME STRUCTURE

Medium-sized banks face challenges concerning ability to generate operating income and achieve capital efficiency

TOTAL OPERATING INCOME (CZK bn)1

181.0	192.3	204.2
181.4

10.3			10.2	10.5		11.0
2017			2018	2019		2020
		MONETA		Banking sector, total
TIER 1 (CZK bn)	2017	2018	2019	2020
Market	457.7	480.2	527.2	611.8
MONETA	20.7	20.1	20.7	23.4

LARGE BANKS (CZK bn)2

115.9	123.5	131.6	114.4

Cumulative operating income at 64%

2017 2018 2019 2020

294

304

336

399

TIER 1

MEDIUM-SIZED BANKS (CZK bn)2

34.7	33.5	35.2	32.4	Cumulative
				operating
				income at 18%
2017	2018	2019	2020
105	113	121	136	TIER 1

SMALL BANKS (CZK bn)2

10.1	13.2	15.5	14.4	Cumulative
				operating
				income at 7%
2017	2018	2019	2020	TIER 1
36	41	50	52

Source: CNB - ARAD. Large banks are considered as banks with a total balance sheet of more than 10% of the total assets of the banking sector, medium-sized banks between 2-10% of total assets and small banks with a balance sheet less than 2% of the banking

sector.5 Note: (1) Market and MONETA excluding CZK 1.1bn as one-off gain from the Acquisition; market including foreign branches and building societies; MONETA consolidated incl. Wüstenrot from 2Q 2020; (2) Does not include foreign branches and building savings banks.