GE Money CEE

Dmitri Stockton, CEE President & CEO

Peter Franklin, CEE CFO

2 /

Poland Investor Day

24 September 2008

Disclaimer

This presentation does not constitute or form any part of an offer, invitation or
inducement to sell or subscribe, or any solicitation of an offer to purchase or
subscribe for any securities. This presentation does not purport to contain all
information that a prospective investor might require, and neither this
presentation nor any part of it nor the fact of its distribution shall form the basis
of, or be relied on in connection with, any contract for the purchase or
subscription of any securities.

The forecasts and forward-looking statements contained in this presentation
are necessarily based upon a number of assumptions and estimates that, while
considered reasonable by us, are inherently subject to significant business,
operational, economic and competitive uncertainties and contingencies, many
of which are beyond our control, and upon assumptions with respect to future
business decisions that are subject to change. Actual results may differ
materially from those projected. Certain items of numerical information and
other amounts and percentages set forth in this presentation may not add up
to the correct total due to rounding.

3 /

Poland Investor Day

24 September 2008

GE Money

4 /

Poland Investor Day

24 September 2008

In the beginning …

1932

1992

1 Product

1 Country

Started as a “Relationship” business supporting GE

5 /

Poland Investor Day

24 September 2008

Now global

Japan

Korea

Latvia

Mexico

New Zealand

Nicaragua

Norway

Panama

Poland

Portugal

Romania

Russia

Singapore

Slovakia

Spain

Sweden

Switzerland

Taiwan

Thailand

Turkey

United Kingdom

United States

UAE

Argentina
Australia
Austria
Brazil
Canada
China
Colombia
Costa Rica
Czech Republic
Denmark
DOMs
El Salvador
Finland
France
Germany
Guatemala
Honduras
Hong Kong
Hungary
India
Indonesia
Ireland
Italy

2007 Year-end presence

6 /

Poland Investor Day

24 September 2008

Full product suite… 75%+ global assets

Well diversified portfolio

1%

4%

15%

6%

10%

13%

15%

36%

’07 Assets by Product

’07 Assets by Geography

29%

44%

27%

44%

29%

27%

JVs

Auto

SME

Mortgages

Sales Finance

Cards

Personal

Loans

Asia

Europe

Americas

51%

26%

23%

$211B ’07 Assets … 75MM + active customer accounts

1,750 own branches + 4,600 partner branches

Other

B=Billions; MM=Millions; K=Thousands; T=Trillions

7 /

Poland Investor Day

24 September 2008

Global GE Money approach

Scale Consumer

Finance Platforms

Emerging Market

Banks

GE Money Inside

JV’s

FOCUS

MAXIMIZE

EXPAND

RSF

GE

M

Ins

ide

e.g.,

e.g.,

e.g.,

UKHL

Australia

Switzerland

Double digit growth @ 20%+ROE
Lean cost base
Support GE emerging market play

2011 Goals

8 /

Poland Investor Day

24 September 2008

Consistent, strong performance

$B Net income

25%

CAGR

25%

CAGR

’06

$3.3

’03

$1.7

’04

$2.0

’05

$2.5

$4.2

’07

$4.3

Continuing Ops

Double digit earnings and asset growth

$211

$179

$100

$140

$148

Assets

21%

CAGR

B=Billions; MM=Millions; K=Thousands; T=Trillions

9 /

Poland Investor Day

24 September 2008

Global industry landscape

Total = $40

T

Mortgage

$14.4

T

Personal Loans

$1.0

T*

Secured Debt $1.8

T

Auto $1.5

T

Card $1.5

T

We are a small player in a huge market

Deposits

$20.0

T

Source : Morgan Stanley, McKinsey, Mercer Oliver Wyman

GE Money market share <1%

B=Billions; MM=Millions; K=Thousands; T=Trillions

10 /

Poland Investor Day

24 September 2008

Diversified geographical footprint

GE Money EMEA

Assets
($ Billions)

16%

CAGR

60

74

73

89

107

'03

'04

'05

'06

'07

Ireland

Sweden

Denmark

Portugal

Spain

Italy

Czech

Poland

Slovakia

France

Switzerland

DOMs

Germany

Austria

Hungary

Norway

UK

Latvia

Russia

Turkey

Romania

UAE

Finland

B=Billions; MM=Millions; K=Thousands; T=Trillions

11 /

Poland Investor Day

24 September 2008

'05

$73

'06

$89

'07

$107

Assets ($B)

Net Income ($B)

'05

$1.4

'06

$1.6

'07

$2.2

Employees

26K

Active accounts 17MM

Owned branches

800

Partner branch 3.1K

Solid GE Money EMEA growth

GEM EMEA well positioned for sustained growth

CAGR

21%

25%

Mortgage

$49B

46%

Auto
$21B

20%

Cash loans

$14B

13%

Cards

$5B

5%

SF

$6B

5%

Other/JVs

$12B

11%

B=Billions; MM=Millions; K=Thousands; T=Trillions

CEE Banking

13 /

Poland Investor Day

24 September 2008

CEE market dynamics outlook

Largest share growth expected

Asia
x-Japan

59%

6%

6%

16%

18%

12%

14%

7%

11%

51%

ANZ

$458

‘07

$633

‘11

CEE

Lat Am

W. Europe

1

Most significant profit growth region

2

Banking revenue growth (2006-2016) Profit growth

18%

CEE

19%

19%

17%

China

19%

19%

11%

Lat Am

12%

12%

5%

W. Europe

7%

7%

Among the highest GDP growth regions

3

Nominal GDP growth CAGR (2008–2016)

W. Europe

3%

Lat Am

5%

India

13%

China

15%

CEE

9%

Retail Banking Revenues $B

B=Billions; MM=Millions; K=Thousands; T=Trillions

Source: McKensey

14 /

Poland Investor Day

24 September 2008

GE Money… an early mover in CEE

31%

CAGR

Assets

‘05

’07

$15B

$26B

Net Income

‘05

’07

$0.3B

$0.9B

30+%

delinquencies

‘05

’07

2.9%

2.2%

Meaningful GE business

Czech/

Slovakia

‘97/‘00

Poland

‘95/‘98

Turkey

‘05

Romania

& Latvia

‘06

PAM

Russia

‘04

Poland

‘08

Austria

’94/‘97

AVABANK

PROSPERITA

3.2x

Hungary

‘01

Germany

’98/’03

New in ‘08

B=Billions; MM=Millions; K=Thousands; T=Trillions

15 /

Poland Investor Day

24 September 2008

Entered ’97/98

Assets

’07 Presence

~21%

CAGR

’99

’07

$1.3B

$6.1B

•

Full retail bank

•

545 ATMs

•

218 branches

Well positioned growth business

Czech Republic organic growth

•

#4 Market share

PROSPERITA

B=Billions; MM=Millions; K=Thousands; T=Trillions

16 /

Poland Investor Day

24 September 2008

transformation

Strong organic growth performance

Accelerated NPI

Distribution expansion

•

Doubled branch network

•

Added mobile sales.. +210

•

Partner distribution deal

Mortgage

+68%

Card

+74%

SME

+20%

04-07 CAGR

+

+

Retail Volume

$0.4B

$1.2B

‘04

‘07

44%

CAGR

Loans

$1.7B

$3.8B

‘04

‘07

31%

CAGR

B=Billions; MM=Millions; K=Thousands; T=Trillions

17 /

Poland Investor Day

24 September 2008

Poland expansion

Solid business… excellent team

Entered market in 1995

• Banking license… 1 product

• Acquired mortgage platform in ‘98

• Added products + distribution

’99

’07

0.2

14.0

Assets (PLN B)

Auto

Cash Loan

Cards

Branches

Mortgage

Sales Finance

Agents/Dealers

• Developed intermediary partnerships

70x

B=Billions; MM=Millions; K=Thousands; T=Trillions

18 /

Poland Investor Day

24 September 2008

Bank BPH overview

Status/next steps

• Govt split of Bank BPH… Post UCI/HVB

• 208 branches… 660K retail clients

• PLN 7.1B loans … PLN 6.8B deposits

Deal rationale

• Adds core banking capability

- Distribution, mid caps, SME, deposits, IT

• Funds management capability (TFI)

• Acquired Bank BPH…closed Jun’08
• Downstream merger with GE Money

Bank

- Subject to regulatory approvals

’09E

’11E

42

59

19%

CAGR

Banking transformation in Poland

• Platform for GE Comm. Finance entry

- eg, factoring & leasing

Merged Bank Assets (PLN B)

• Buildout to be a Top 5 Bank

- +$200MM in investments to drive

strategy over 4 years

At acquisition

At acquisition

B=Billions; MM=Millions; K=Thousands; T=Trillions

19 /

Poland Investor Day

24 September 2008

EMEA markets … room to grow

$73

'05

$89

'06

$107

'07

Assets

EMEA

~$7T market

1,100MM people

Takeaways

Huge … growing market

Track record of delivering organic growth

Acquisition / integration machine

Strong model in Eastern Europe

Pruning portfolio to play in right places

Proven ability to manage risk through cycles

Proven business model

($ in billions)

EMEA

B=Billions; MM=Millions; K=Thousands; T=Trillions

Merger Process

21 /

Poland Investor Day

24 September 2008

Overview

2Q 2008 loan portfolio mix

Combination forms universal bank portfolio

+

+

Retail

12%

Mortgage

50%

SME

28%

Corporate

10%

Mortgage

54%

Consumer

Lending

40%

Cards

5%

SME

1%

22 /

Poland Investor Day

24 September 2008

Merger rationale

Creates scale in an attractive market

- More customers

- More products

- More distribution

Adds funding diversity

Brings revenue & cost synergies

Deepens banking expertise

Aspiration goal: become a Top 5 Bank

23 /

Poland Investor Day

24 September 2008

Current shareholder structure

# of shares:

28,716,230

66.0%

GE Money Bank

Unicredit

BZ WBK AIB

MoT

3.7%

Free float

5.0%

5.1%

# of shares:

81,080,688

GE

100.0%

GE

GE

Bank BPH

Bank BPH

GE Money

Bank

GE Money

Bank

Public

Public

100%

66%

34%

Other

20.2%

24 /

Poland Investor Day

24 September 2008

Targeted shareholder structure

Post merger

Today

≤

≤

≤

≤75%

GE

GE

Public

Public

Merged

Bank

Merged

Bank

≥

≥

≥

≥25%

GE

GE

Bank BPH

Bank BPH

GE Money

Bank

GE Money

Bank

Public

Public

100%

66%

34%

25 /

Poland Investor Day

24 September 2008

Expected timeline

Jun’08

BPH Acquisition GE Acquires 66% 17 Jun 08

1

Dec’08

BPH EGM- Vote on Merger

Dec 08

4

2009

Legal merger

1Q‘09

6

Sep’08

Submit KNF Application

Sep 08

3

Announce Exchange Ratio

24 Sep 08

2

Target KNF approval

1Q‘09

5

26 /

Poland Investor Day

24 September 2008

Exchange ratio & process

0.825 Bank BPH shares for every GEMB share…

Bank BPH continues as a listed entity on WSE

• Financial & legal Due Diligence carried out on both banks

• Stand alone financial projections prepared for each bank

• Both banks retained independent financial advisors:

- Goldman Sachs acting for GE Money Bank

- JP Morgan acting for Bank BPH

• Merger approved by Management & Supervisory

Boards of Bank BPH & GE Money Bank

27 /

Poland Investor Day

24 September 2008

Key steps

• GE Money Bank contributes to

Bank BPH…

- Assets & liabilities

- 66% ownership stake in Bank BPH

(19.0MM shares)

- Bank BPH shares currently owned by

GE Money Bank (19.0MM shares)

- Merged Bank shares as payment

for the net assets of GE Money Bank

• GE Money Bank shareholders

receive from Bank BPH…

GE Money Bank

Shareholders

GE Money Bank

Shareholders

GE Money

Bank

GE Money

Bank

Bank BPH

Bank BPH

Assets & Liablities +

66% of Bank BPH

Bank BPH shares
currently owned by
GE Money Bank +
New Shares

Public

Public

GE

GE

Public

Public

Merged

Bank

Merged

Bank

B=Billions; MM=Millions; K=Thousands; T=Trillions

28 /

Poland Investor Day

24 September 2008

Overview

2Q 2008 loan portfolio mix

Combination forms universal bank portfolio

+

+

Retail

12%

Mortgage

50%

SME

28%

Corporate

10%

Mortgage

54%

Consumer

Lending

40%

Cards

5%

SME

1%

Strategy for Merged Bank

David Kay, GE Money Bank, CEO

Józef Wancer, Bank BPH President & CEO

30 /

Poland Investor Day

24 September 2008

Legal merger of both Banks to be completed by 1Q 2009

Banking evolution

GE acquires 66% of Bank BPH

2008

Spin-off of Bank BPH with
transfer of 80% assets to Pekao

2007

Legal merger with PBK

2001

First quotation on the WSE

1995

Spin-off from NBP as one
of 9 commercial banks

1989

Merger of GE Capital
Bank and GE Bank Mieszkaniowy
and Creation of GE Money Bank

2005

Acquisition of Polsko-Amerykański
Bank Hipoteczny

1998

Acquisition of Solidarność Chase
DT Bank and creation of GE Capital
Bank

1995

Launched branch strategy

2006

12

th

Anniversary in Poland

2007

31 /

Poland Investor Day

24 September 2008

Market positioning

Market Share

(GEMB & Bank BPH)

Bank BPH

GEMB

Weakest

Strongest

Product

Competitive

Position

• Broadens GEMB

into universal
banking

• Adds x-sell

synergies

• Expands

distribution

Combination

• Enhances value

for customers

23%

14%

11%

11%

15%

5%

3%

5%

1%

0%

Sales financing

Auto loans

Cash loans

Mortgage loans

Credit Cards

Deposits/CA

TFI: Mutual funds

SME banking

Brokerage

Corporate & INM

-

-

-

-

-

32 /

Poland Investor Day

24 September 2008

Merger & integration

Merger will create real value for shareholders and customers

Sales Oriented

Corporate Culture

Higher Market

Penetration & Client

Base

Better Competitive

Position

Substantial Merger

Revenue Synergies

Strong Risk

Management

GE Support

Multi-channel

Distribution Network

Significant Growth

Potential

33 /

Poland Investor Day

24 September 2008

Phased integration roadmap

1Q’09

2Q’09

2008

• Strategy validation

• IT target application model

• Future board & org. structure

• One legal entity

• New brand launch

• Sales & product unification

• IT system integration

• Unified service processes

• Drive synergies

Pre-Integration

Legal Merger

Operational Merger

Joint initiatives underway…

• X-sell of Bank BPH current accounts

to GEMB clients

• Sale of GEMB cash loans at Bank BPH

branches

• X-sell Corporate products to GEMB

SME clients

Joint effort drives winning strategy

34 /

Poland Investor Day

24 September 2008

Rigorous integration operating rhythm

Operating rigor

Page 12

• Quick wins execution

Strategic roadmap for the New Bank

Post integration

execution

• Final adjustments of

target

operational/organizational
solutions

• New developments

Preparation of operational
integration

• Adjust / define processes,

infrastructure and organization to
implement target business and
operational

model

Legal merger preparation

Integration planning

• Integration blueprint development

– by business units and central
functions / shared services

• New branches development and 'universalization' of GE branches
• Franchise concept implementation

In

te

g

ra

ti

o

n

B

u

si

n

e

ss

g

ro

w

th

C

o

rp

o

/

IN

M

R

e

ta

il

/S

M

E

• Cross-sell execution
• New network structure implementation

• Target p

roduct offer

implementation and
developments

• Revitalize Affluent segment

• Define target product

portfolio

• Rebuild regional presence (corporate centers, product hunters)
• Rebuild/strengthen central functions in Corpo and INM/Treasury

O

perational merger
(Q2 2009)

Stage 2: Post – merger phase

Stage 0: Pre-merger phase

KNF consent for
execution of votes (June 2008)

Stage 1: Legal and operational

Merger preparation

• Quick revenue wins definition

– x-sell of products between

customer bases

– CRM best practice sharing

• Strengthen SME segment

• Cross-sell preparation

Legal merger
(Q1 2009)

• Revitalize product portfolio (e.g. factoring)

• Establish leasing business

Page 14

Integrated implementation plan of strategy projects

Time-frame and key milestones per initiative – Retail / CF

1. Being prepared by Integration Teams of the two Banks 2. Related to New Brand and Branch Experien ce project – depending on their results

Q2

Q3

2012

2011

2010

Q4

Q1

Q3

Q2

Q3

Q4

2009

Q2

Q1

2008

Q3

Q1

Q4

Q2

Q1

Q4

Q3

Q2

Q4

Q1

Strategic initiatives

All branches opened

New branch models detailed

1. New Retail branches

Potential branch redesign

2

New organization definedGE branches universalized New structure operating

2. New branch network structure

Network dev. complete

On-going product development and implementation

Franchise network mgmt in place

Define target product portfolio

On-going cross-sell development and execution

5. Target product portfolio

New approach to advisors in placeProducts definition in place New tools in place

6. Revitalization of Affluent segment

On-going training

Operational start All teams operating Target staffing

7. SME Hunters and MSF

Q2'08

KNF consent for execution of votes

Q2/08

Settlement

Q1'09

Legal merger

4. Cross-selling actions

Algorithm and product bundles ready

3. Development of franchise network

New model detailed

Target offer implementation

Final implementation timeline to be adjusted to merger projects plan

1

Operational merger

Q2'09

Implementation

Page 15

Integrated implementation plan of strategy projects

Time-frame and key milestones per initiative – Corporate / Treasury

1. Being prepared by Integration Teams of th e two Banks 2. Related to New Brand and Branch Experience project – depending on their results

Q4

Q2

Q3

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2012

Q3

Q1

Q4

Q1

Q2

Q3

Q1

Q2

Q4

2008

2009

2010

2011

Target organization and processes in place

Brand strategy developed

On-going marketing/product campaigns

Strategic initiatives

Legal merger

Q1'09

Settlement

Q2/08

KNF consent for execution of votes

Q2'08

12. Corporate risk process

11. Rebuild leasing business

New brand launch

8. New brand/marketing strategy

All recruiting completed

Target network built

9. Rebuild Corporate business

All hunters in place

TB+EB hunters in place

10. Corporate product hunters

Leasing business operational

Establish Leasing business

Final implementation timeline to be adjusted to merger projects plan

1

Operational merger

Q2'09

Clear, targeted focus to ensure operating success

• Integration implementation plan in

place

• Efficient integration structure

- Steering Committee
- Dedicated PMO
- 16 Workstreams

• Full commitment of both Bank Boards

• Weekly reporting on progress, bi-

weekly Steering Committee decision
point

• Projects prioritised, budgets assessed

and allocated

• Alignment with business objectives and

priorities

35 /

Poland Investor Day

24 September 2008

Future management board

Execution oriented leadership

Józef Wancer (42)

• CEO & President of the Board
• Marketing, PR & Communication,

Internal Audit, Security/legal &
Compliance, IR

David Kay (22)

• Deputy President of the Board
• Bank Strategy and Integration

Mirosław Boniecki (19)

• Deputy President of the Board
• International Markets, Treasury

Grzegorz Dąbrowski (19)

• Deputy President of the Board
• Corporate Banking and Commercial

Real Estate

Piotr Królikowski (12)

• Deputy President of the Board
• Retail Banking

Kazimierz Łabno (18)

• Deputy President of the Board
• Operations, IT, Administration

and Logistics

Cezary Mączka (9)

• Deputy President of the Board
• Human Resources

Carl Normann Voekt (18)

• Deputy President of the Board
• Risk Management

Kent Holding (18)

• CFO & Deputy President of the Board
• Finance

( ) Professional experience in years

36 /

Poland Investor Day

24 September 2008

Merged Bank aspirations

• Universal bank with the edge of

a Consumer Finance specialist

• Bank of choice for mid-caps

• Deliver customer value and

satisfaction

• Employer of choice

Assets (PLN B)

‘09

’11

42

59

19%

CAGR

ROE 20% +

ROE 20% +

CAR 10% +

CAR 10% +

Financial success

Operating approach

Cost/Income <50%

Cost/Income <50%

Aspiration goal: become a Top 5 Bank

B=Billions; MM=Millions; K=Thousands; T=Trillions

37 /

Poland Investor Day

24 September 2008

Poland market revenue pools

19.9

10.2

2.8

30.1

5.2

3.5

9.0

6.2

0

10

20

30

40

50

(PLN B)

Total Revenue 2007

Individual

customers

1.7

SME

Corporate

44.3

Total Revenue 2012

Corporate

SME

Individual
Customers

29.6

10%

10%

8%

8%

8%

8%

8%

8%

CAGR revenue

67%

67%

12%

12%

21%

21%

Revenues share

2012 (%)

Revenues share

2012 (%)

~80% of market growth to come from Retail/SME

Expected revenue 2012

B=Billions; MM=Millions; K=Thousands; T=Trillions

38 /

Poland Investor Day

24 September 2008

Market retail revenue growth driven by loans

Revenue growth by products (2007-2012)

5.6

5.6

3.9

3.9

12.3

12.3

2.4

2.4

7.4

7.4

0.8

0.8

0.9

0.9

Revenues 2012

(PLN B)

Revenues 2012

(PLN B)

1.8

1.8

12%

12%

14%

14%

12%

12%

8%

8%

1%

1%

-3%

-3%

5%

5%

CAGR Revenue

CAGR Revenue

6%

6%

23.4

5.2

1.7

3.0

0.6

0.2

0.5

7.7

3.0

Total Revenue

2007

Consumer

Finance

Mortgages Investments Deposits and

Accounts

-0.1

Other

0.8

Loans

Deposits

Other

1.2

Total Revenue

2012

35.3

23.4

Individuals

SME

Loans

Mutual
funds

Other

65%

25%

10%

(PLN B)

Revenue
growth
'07-'12

Share in growth

B=Billions; MM=Millions; K=Thousands; T=Trillions

39 /

Poland Investor Day

24 September 2008

CAGR 2007-2012

~8%

~8%

~8%

~8%

~8%

~8%

Market revenue by products 2007-2012

7.8%

7.8%

Share of growth

20%

20%

12%

12%

14%

14%

100%

100%

46%

46%

~12%

~12%

~3%

~3%

8%

8%

Corporate revenue to grow ~8% to PLN 9 B in 2012

Corporate banking market revenue

1.2

1.7

1.7

0.9
0.7

6.2

Total Revenue 2007

0.6

Basic products

0.2

Transactional

banking/accounts

1.3

Non-standard

financing

0.4

Treasury (excl.

Deposits)

0.3

Other

1.8

1.9

3.0

1.3

1.0

9.0

Total Revenue 2012

- Loans
- Deposits

- Leasing
- Factoring
- Commercial RE
- Structured Finance

- FX spot, FX, IR derivatives
- Custody

- Trade Finance
- Advisory (incl. M&A,

ECM, DCM)

(PLN B)

Basic Products

Non-standard Financing

Treasury (excl. Deposits)

Other

Transactional
banking /Accounts

Market growth driven mainly by

Treasury products and non-

standard financing

B=Billions; MM=Millions; K=Thousands; T=Trillions

40 /

Poland Investor Day

24 September 2008

Strong platform for universal banking

Merged Bank represents powerful platform

to drive future growth

Diversified
distribution

Full product mix

Complementary
Brand Image

System/process
excellence

Growing
customer base

• 660 K retail customers
• 78K SME & 800 corporate clients

• 1.2MM active Consumer Finance

customers

• Strong in transactional banking
• Ready corporate platform
• Fund management

• Leader in consumer finance,

mortgage & cards

• Strong branch based model
• Best in class Internet capability

• High brand awareness
• Trustworthy bank

• Flexible transactional banking system
• Scoring and rating models for SME

• Extensive partners & POS
• Loan shops, telemarketing, x-sell

• Good reputation among B2B partners
• B2C image of modern and dynamic

• Best practice analytical CRM
• Highly efficient processes & risk tools

B=Billions; MM=Millions; K=Thousands; T=Trillions

41 /

Poland Investor Day

24 September 2008

Universal bank strategy

Retail Banking

Corporate Banking

INM/Treasury

Retail & SME

Strong Consumer Finance

Lending Edge

• Expand distribution

• Regain leadership in SME

• Revitalize Affluent

• Optimize POS/intermediaries

• Convert CF base to retail

• Partnerships, JVs

+

Operational Efficiency

Operational Efficiency

Superior Risk Management

Superior Risk Management

Differentiated Service

Differentiated Service

Bank of Choice for Mid Caps

• Leverage GE Capital for

factoring and leasing

• Win through innovative,

high quality service

• Expand electronic channels

• Client acquisition through

mobile sales force

• Lead in structured

investment and risk
management solutions

• Provide efficient ALM

including funding

• Ensure local trading

expertise for effective
execution of sales and
ALM

Key Growth Enabler

3

1

2

+

• Pursue selective large

corporate relationships

42 /

Poland Investor Day

24 September 2008

Business model

Key strategic actions

Retail banking approach

1

Value

proposition

Value

proposition

• Value products for customers

available in a wide distribution
network

Products

Products

• C/A packages

• Internet banking

• Mortgages (FX & PLN)

• Cash loans, credit cards

• Savings products (including

TFI, structured deposits)

Channels

Channels

• Universal channels providing

sales & service

• Variety of remote channels

X-sell

X-sell

• Leveraging all contacts for

x-sell of pre-selected/ pre-
approved products

• Rebuild branch coverage

• Efficient sales management

• Universal banking X-sell strategies

• Branding strategy, consistent with

retailer bank

• Harmonization of product offer with

value proposition

Loans target (PLN B)

‘09

’11

28

38

17%

CAGR

B=Billions; MM=Millions; K=Thousands; T=Trillions

43 /

Poland Investor Day

24 September 2008

Expand branch network… drive scale

1

Add more owned branches

A.

Rebuild franchise model

B.

Today

’11

450

• Refresh formats

• Universalisation of GEMB branches

• Drive sales efficiency

• Strengthen partner relationships

• Deepen market coverage

• Improve cost leverage

Themes

Themes

Today

’11

329

530

61%

61%

153%

153%

178

219

110

78

100

B=Billions; MM=Millions; K=Thousands; T=Trillions

44 /

Poland Investor Day

24 September 2008

Effective and diversified sales capabilities

* # sales telemarketers; ** # active users

2009

2011

Branches

Mobile Sales

Franchise

Agents

Auto Dealers

Internet**

Telemarketing*

400

530

225

450

160

450

3,800

2,300

2,200

400K

1.5MM

200

350

Key deliverables

Partnerships

Branches

Product mix

Efficiency

4,000

1

Leverage multi-channel distribution

• Test new format

• Geographical optimization

• GEMB High Street Branches

universalisation

• Product bundling offering

value for customers

• Centralization of non-value

added activities

• Face to face time +40%

• JVs with industry leaders

• Alliance with value added

services providers

Distribution channels

B=Billions; MM=Millions; K=Thousands; T=Trillions

45 /

Poland Investor Day

24 September 2008

Convert GEMB CF customers to retail

1

3 examples…

Existing CF customers

X-sell opportunities

Key actions

1

2

3

Retailer

Mortgage

Agent

Deposits

Current

Account

Internet
Banking

Transactional

Banking

Payments

Working

Capital

• Creating product packages

• Opportunities identified

Franchise

Outlet

Internet
Banking

PLN 150MM+ total revenue by 2011

Marketing

Support

• Dedicated team appointed

B=Billions; MM=Millions; K=Thousands; T=Trillions

46 /

Poland Investor Day

24 September 2008

Business model

Key strategic actions

SME banking

1

Value

proposition

Value

proposition

Products

Products

Channels

Channels

X-sell

X-sell

• Simple product packages and

efficient processing

• Proximity and local relationship

• Companies <15MM PLN sales
• Entrepreneurs < 20MM PLN sales

• Product packages adopted to

different needs (Harmonium)

• Fast overdrafts and charge cards
• Simplified loans (investment,

car, mortgage)

• Dedicated offers for larger clients

• Branches with RMs
• Hunter RMs and mobile agents

• Proactive by RM
• Pre-approved campaigns

Clients

Clients

• SME sales-force/skills in retail branches

• Build hunter RM network

• New products: Internet & premium packages,

leasing, factoring

• New scoring tools for faster decisions

• X-sell of full banking relationship to GE SME

client base

Loans target (PLN B)

‘09

’11

3

7

42%

CAGR

B=Billions; MM=Millions; K=Thousands; T=Trillions

47 /

Poland Investor Day

24 September 2008

Business model

Key strategic actions

Revitalize affluent banking

1

Value

proposition

Value

proposition

Products

Products

Channels

Channels

X-sell

X-sell

Clients

Clients

# of customers (K)

- simple, efficient products at lower

cost

• Custom tailored solutions

- value added services with tiered

pricing

• Private individuals with

- Inflow >7.5K PLN or assets with

bank >75K PLN

• Unique, flexible schemes,

Internet C/A, etc

• TFI structured deposits

• Branches with Affluent advisors

• Automated channels

• Proactive by Affluent advisors

• Advisors in new branches

• Internet based offer

• Segment based program (content,

communication, tools, training)

• Conversion of affluent clients from

consumer finance base

• Targeting TFI customers

‘09

’11

70

110

25%

CAGR

B=Billions; MM=Millions; K=Thousands; T=Trillions

48 /

Poland Investor Day

24 September 2008

Corporate banking

2

PLN 250 MM

PLN 15 MM

Mid caps

Large caps

SME

Basic plus innovative (but simpler
than for large-caps) products: FX
operations, export-import
operations, MM operations

Tailored made products: large scale
financing (e.g. Structured Finance),
investment banking, sophisticated
MM and FX products (hedging, risk
management)

Standard offer: basic products
such as C/A, deposits, loans and
leasing

• Selective approach to serve large-

caps – focus on products other than
traditional loans

• Central large-caps team with

industry specialists

• Focus on mid-caps with transactional

needs

• Re-build Corporate Centers to ensure

effective acquisition and servicing

• Centralized Service Center for

corporate clients servicing

• Segment to be served by Retail/SME

Division

PLN 10 MM

~5,000

~14K mid & large caps in Poland

Product usage

Merged Bank approach

1,700,000

14,000

1,200

B=Billions; MM=Millions; K=Thousands; T=Trillions

49 /

Poland Investor Day

24 September 2008

Become bank of choice for mid caps

Transactional

Banking

Treasury

Trade Finance

Leasing

Factoring

Traditional

loans

• Wide product

offering supported
by state-of-the-
art, electronic
banking system

• Multi-purpose

credit limit

• Quick

implementation

• High quality

after-sales service

– Customer Service

Center

• Direct access to

experienced dealers

• Internet-based

platform for FX
and negotiated
deposits

• Attractive pricing

for FX products

• Flexible offer

• Straight-Through

Processing

• Experienced

product
specialists to
advise in
transactions

• State-of-the-art

electronic platform

• Possibility to

use multi-
purpose credit
limit

• Fast transaction

processing

• Flexible and

comprehensive
offer

• Fast credit process,

short time to
agreement
finalization

• State-of-the-art

electronic banking
platform to support
receivables input
and tracking

• Fast credit process

and collateral
structure;
possibility to use
multi-purpose limit

• Fast transaction

processing

• Flexible and

comprehensive
product offering

• Experienced

product specialists

• Multi-purpose /

multi-currency
credit limits

• Fast credit

process

- time-to-yes

- time-to-cash

1

2

3

4

5

6

• Rebuild capability

2

Leverage GE

Capital Pan European

Capabilities for Rollout

50 /

Poland Investor Day

24 September 2008

Mid cap banking early progress

2

Transactional

banking

38%

Treasury

33%

Comm. Real

Estate &

Structured

Finance

9%

Traditional

deposits

1%

Traditional

loans

18%

Other

1%

• 11 corporate centers established

• Credit cycle time 14 days

• Significant real estate deals… Panattoni

& Catalina

• Trans Kasa deal… 1,000 POS + $30 MM in

Payments

Current revenue structure

• 570 customers using transactional banking

Key wins

Clients signed

Nov ‘07

0

Aug ‘08

800

Loans

Nov ‘07

0

Aug ‘08

1.0B

(PLN)

Deposits

Nov ‘07

0

Aug ‘08

1.0B

(PLN)

B=Billions; MM=Millions; K=Thousands; T=Trillions

(#)

51 /

Poland Investor Day

24 September 2008

World class treasury enabling growth

3

FX & risk

mgmt

Corporate

(Large/Mid-caps)

Corporate

(Large/Mid-caps)

Deposits

Research

Custody

• FX spot
• Plain FX forward
• Other risk mgnt

solutions

• Money market

deposits

• Debt instruments –

bonds, bills, CPs

• Analysis:

- Macroeconomic
- Industry segments
- Financial markets

• Securities accounts
• Agency and clearing

services

Retail

Retail

SME

SME

• FX spot
• Plain FX forward

• FX spot

• Structured

investment
products

• Hassle-free spot transactions
• Competitive pricing for

price-sensitive clients

• Tailor-made risk management

• Convenient deposit opening
• Access and advisory for money

market instruments

• Efficient and flexible systems
• Add-on services

- Available also through Internet platform

Product group

Product group

Value proposition

Value proposition

Excellent infrastructure to support

business growth

52 /

Poland Investor Day

24 September 2008

Centralize ops factory

Leverage across entire bank

Opportunity examples

Production

U

n

d

e

rw

ri

ti

n

g

C

u

st

o

m

e

r

S

e

rv

ic

e

C

li

e

n

t

S

e

rv

ic

e

F

ra

u

d

P

re

v

e

n

ti

o

n

&

R

e

co

v

e

ry

C

o

ll

e

ct

io

n

s

&

L

o

ss

R

e

co

v

e

ry

E

n

g

in

e

e

rs

Service to Sales

Collection and

Contact Strategy

Process Mgmt

(BPMS, Lean)

Training &

Quality Control

Budgeting &

Cost Control

Capacity Planning,

Backups & Multiskills

C

a

ll

C

e

n

te

r

(T

e

le

sa

le

s

&

S

e

rv

ic

in

g

)

• Centralize application

processing

• Bankwide mortgage Center

of Excellence

• Centralize collection unit

• Centralize customer service

53 /

Poland Investor Day

24 September 2008

Merged Bank synergies targets

Distribution/

X-sell

Distribution/

X-sell

Branch

Universalization

Branch

Universalization

Cost

Rationalization

Cost

Rationalization

• X-sell SME products in GEMB branches &

consumer loans in BPH branches

• Improving branch effectiveness
• Test new formats

• Upgrading existing GEMB branch

network with full universal banking
capabilities

• Global contract discounts
• Creating single back office
• Overlaps in IT and Operations
• HQ rationalization

40%

40%

%

Synergies

PLN

Synergies

30%

30%

30%

30%

112MM

112MM

85MM

85MM

85MM

85MM

Today

Today

2011 target

2011 target

Cost/Income

Ratio

54%

75%

Merged bank

B=Billions; MM=Millions; K=Thousands; T=Trillions

Examples

<50%

PLN 282MM

run-rate

synergies

by 2011

54 /

Poland Investor Day

24 September 2008

2011 target profile

Summary

• Excellent growth market

• Teams with deep experience

on the Polish market

• Multi-channel distribution to

fuel desired growth objectives

• Good momentum in corporate

banking

• Proven track record… strong

majority shareholder

Assets (PLN B)

‘09

’11

42

59

19%

CAGR

ROE 20% +

ROE 20% +

CAR 10% +

CAR 10% +

Cost/Income <50%

Cost/Income <50%

B=Billions; MM=Millions; K=Thousands; T=Trillions