Asociatia Societatilor Financiare ALB Romania The Financial Companies

Asociatia Societatilor Financiare - ALB Romania The Financial Companies Association – ALB Romania Piaţa de leasing financiar în România Financial Leasing Market in Romania 30. 09. 2012 Antoaneta Curteanu Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA Presedinte al Asociatiei Societatilor Financiare - ALB Romania 1

Industria de leasing in Europa 2012 / Leasing Industry in Europe 2012 Mediu de afaceri aflat in schimbare , provizioane in crestere/ Changing landscape, provisions affects profitability Facts & Figures*: Threats: Ø Q 2 new leasing volumes of € 19 billion vs € 21. 4 billion Q 2. 2011 Ø Operating income and operating expenses decrease slightly (2. 1% and 1. 8% respectively) Ø Loan loss provisions suffered its highest increase so far, rising by 53% in Q 2 2012 Ø The average annualized cost of risk increased to 0. 8% Ø ROA decreased to 0. 8% - compared with 2011 ROA of 1. 0% Ø ROE decreased from an average of 17. 1% in 2011 to 14. 6% in Q 2 2012 Ø Ø The cost of funding is expect to increase slightly Changing financial market regulations The risk of fraud has substantially increased Basel III liquidity provisions * Comparison with the same period last year Leaseurope Quarterly index 2012 Q 2 Operating income Operating expenses Loan loss provision Pre-tax Profit Portfolio at end of period New business volumes 2012 Q 1 Sum of values (€ millions) % change versus Q 2 2011 Sum of values (€ millions) % change versus Q 1 2011 1, 901 911 498 -2. 1% -1. 8% 52. 6% 1, 993 960 378 -0. 8% 0. 4% 20. 7% 480 -32. 7% 665 -9. 3% 237, 311 1. 1% 226, 802 2. 9% 19, 046 -10. 9% 15, 982 -7. 1% Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 2

Economia Romaneasca 2012/Romanian economy 2012 In cautarea echilibrului/ Looking for right proportion Ø Industrial production was 0. 6% higher yoy as at Jul. 2012, because of the increases in energy supply (+8. 1%). Decreases were registered in manufacturing (-0. 4%) and in mining and quarrying (-0. 1%). Ø Construction works increased 4. 6% yoy, mainly generated by new constructions (+13. 4%). On types, mainly the engineering constructions (i. e. infrastructure) met an upward trend of + 17. 1%, while residential works dropped 14. 1%. Ø Investments in Romanian economy increased by 20% yoy at Jun. 12, with investments on Transport equipment and means up 24. 5% and in Construction works up by 18%. (INSSE - Monthly Statistical Bulletin Jul. 12) ECONOMIC ACTIVITY GDP (EUR bn) Population (mn) GDP per capita (EUR) Real Economy yoy (%) GDP Private Consumption Fixed Investment Public Consumption Exports Imports Monthly wage, nominal (EUR) Unemployment rate (%) 2009 118. 3 21. 5 5501 2010 124. 1 21. 5 5774 2011 f 136. 5 21. 4 6379 2012 f 135. 8 21. 4 6347 2013 f 140. 1 19. 0 7373 2014 f 143. 5 19. 0 7553 -6. 6 -9. 2 -25. 3 1. 2 -5. 5 -20. 6 326 6. 9 -1. 7 -2. 0 -13. 1 -3. 2 13. 1 11. 6 334 7. 3 2. 5 0. 7 6. 4 -3. 5 9. 9 10. 5 346 7. 4 0. 5 -0. 7 3. 2 0. 2 -0. 3 350 7. 3 1. 3 0. 4 -1. 1 0. 5 3. 4 2. 8 360 7. 0 1. 6 1. 0 0. 8 0. 4 5. 7 4. 3 372 6. 5 Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 3

Septembrie 2012 - Piata de leasing financiar din Romania / Leasing Market Romania Contributie importanta a segmentului auto / Important contribution of Vehicles in total 3% Real – Estate 71% Vehicle Financing Finantarea Vehiculelor € 979 million Finantarea bunurilor imobiliare 26% Equipment Finantarea echipamentelor Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 4

Evolutia pietei de leasing financiar (cresteri anuale)/Financial Leasing Market Evolution (annual growth rates) Evolutie constanta pastrand proportiile anului trecut / Steady evolution maintaining last year pace € million 4, 170 3, 449 +47% 2, 339 1, 079 780 1, 008 979 Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 5

Piata de Leasing Financiar in Romania - ponderea segementelor in total finantari Romanian Financial Leasing Market - Weight per Good Segment Finantarile de Real Estate in leasing ating un mimin istoric/ Dramatic drop in real estate sector 2. 339 3. 449 4. 170 1. 079 780 1. 008 979 Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 6

Piata de leasing financiar din Romania dupa categoria utilizatorului Romanian Financial Leasing Market Structure by Customer Type Beneficiarii traditionali ai produsului leasing – “ Companiile” / The most important Lessee is represented by “ Companies” Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 7

Piata de leasing din Romania (echipamente si vehicule) dupa tipul achizitiei Romanian Leasing Market (Equipment and Vehicles) Structure by Acquisition Type Finantarile de vehicule SH diminuate de vanzarile cash si de apetitul de risc al companiilor de leasing/ Second Hand Leasing financing reduced due to the cash sales and lower risk appetite Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 8

Piata de Leasing Financiar din Romania dupa durata contractului Romanian Financial Leasing Market Structure by Duration of Contract Interes in crestere pentru finantarile pe termen scurt si mediu / Increasing preference for short and medium term contracts Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 9

Piata de leasing financiar din Romania - finantarea vehiculelor/ Romanian Financial Leasing Market - Vehicle Financing Ponderea segmentului de autoturisme creste accelerat atingand maximul ultimilor 4 ani / Weight of passenger cars segment surged to its highest level in the last 4 years Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 10

Piata de leasing din Romania - finantarea echipamentelor Romanian Leasing Market - Equipment Financing Industria Metalurgica si Constructiile cresc semnificativ / Metal Processing and Constructions record fastest increase Agricultura / Agriculture Constructii / Construction Electronice / Electrical devices Industria Alimentara/Food & bevarage Ehipamente Medicale/ Medical Equipments Industria Chimica/ Chemical Industry Industria Metalurgica/ Metal Processing Office + IT Car Service / Car Services Stivuitoare / Forklift Ind. Prelucrarii lemnului / Wood procesing Mobilier/ Furniture Plastic and Rubber / Plastics & Rubber Industria petroliera / Pentrolium & derivates Echipamente de printat / Printing & Packaging Altele / Others Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 11

Impactul cadrului legislativ asupra industriei de leasing The impact of the legislative frame on leasing industry n Draft regulation regarding certain conditions applicable to the lending activity (released by NBR, currently in consultation). The new restrictions applicable to SME lending/leasing in foreign currencies should be more appropriately assessed prior to the enforcement, in order to determine whether they are economically feasible. n The impact on certain products of a number of “creative” solutions enforced under the New Civil Code are being assessed. One may wonder what was the real intention of the Parliament when establishing that: o the court may decide to return to the lessee a part of the leasing payments, after the leasing agreement is terminated as a consequence of lessee’s default; o the pledge set up by a supplier over an expensive equipment, in order to secure the lender, vanishes right when the equipment is sold to the end user. . . n Starting with March 2011, new norms to Fiscal Code were enforced, stipulating that leasing companies should self charge VAT payment in case of cancelled contracts where the assets are not repossessed. As a consequence of the discussions with Bruxelles, this provision shall be repealed effective as from January 1 st, 2013. Nevertheless, the Ministry of Finance’s intend is to use the VAT adjustment provisions in order to apply an even more brutal Vat treatment to leasing companies Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 12

Impactul pozitiv al Industriei Leasingului asupra economiei The benefits of Leasing Industry over economy: 1. 2. 3. 4. Enabler of business investments Valuable and price competitive alternative to loan finance A means to support the sale of the manufacturers of the assets Valuable, low risk form product For SMEs in particular: Ø The ability of SMEs to access finance is important for funding business investment, ensuring business reach their growth potential, and for facilitating new business start-ups; Ø SMEs are not able to raise money directly in the capital markets– mainly dependent on traditional bank financing, which is itself limited by constraints due to banks’ refinancing capacity, their risk appetite and capital adequacy Ø Leasing is a possibility for SMEs to expand their access to short – and medium – term financing Ø Leasing is an alternative mechanism to facilitate access to finance, even more in the current market environment. Ø Leasing can serve as a helpful financing tool for SMEs which provides financing close to the investment periods of the leased assets. Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 13

Policymakers support for leasing industry can help to mitigate market weaknesses and to enhance the access to finance for small and big contributors to the state budget. Thank you! Source/Sursa: ASOCIATIA SOCIETATILOR FINANCIARE – ALB ROMANIA 14