V tashkent International Investment Financial Forum – April 2012

• V Tashkent International Investment
• Financial Forum
• 4 – 8 April 2012

• Table of Contents

• History of KDB
• Overview of KDB Financial Group
• UzKDB Bank
• RBS NB Uzbekistan CJSC
• Vision & Strategy

• Current Structure
• KDB Financial Group
• KDB Profile
• Global Presence

• Overview - KDB

• Current Structure

• 4

• KDB Financial Group

• Daewoo Sec.

• KDB Capital

• KDB Asset Mgmt

• Government

• Korea Finance Corporation 1

• 100%

• 90.3%

• 9.7%

• KIAMCO

• KDB

• 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

• KDB Financial Group

• 5

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

• Business areas
• Retail
• Investment Banking
• Wealth Management
• -Trading
• Uncontested position in the domestic capital market
• Highest M/S in brokerage and primary market
• Established: Sep. 1970
• No. of Offices : 131
• Asset 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. 2003
• No. of Offices : 1
• Asset Size : KRW 18.1bn

• 84.2%

• 99.9%

• Business areas
• Asset Management
• (equity/bond/hybrid funds)
• -Trust Management
• -Investment Advisory
• Comprehensive asset management
• Top 10 in AUM
• Established: Jul. 1996
• No. of Offices : 1
• Asset 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 : 2,465
• No. of Offices : 73 (Including overseas)
• Asset Size : KRW 149trn (End of 2011)

• 100% Owned by the government through KDB FG

• KDB Profile

• 6

• 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%)

• 7

• Global Presence

• New York

• London

• Tokyo

• Shanghai

• 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

• Vision & Strategy

• 28

• 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, Uzbekistan
• SWIFT: UZDAUZ22

Why KDB invests in Uzbekistan financial market

• 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.

Mission

• UzKDB Bank

• …always moving forward…

• reputation
• of stable
• & reliable
• Financial
• institution

• a full range high quality banking services

• wide range
• of strong customers stretching from entrepreneurs to business elite

• creating
• value-added
• business
• opportunities
• & new banking
• services

From Foundation to Present (i)

• 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.

• 1997-2006

• 2006

• 2006 –
• up to present

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)

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

• International
• payments and
• Visa services

• Loan
• operations

• Export &
• Import
• Operations

• Treasury
• Services

• Local
• Transactions
• Services

• Conversion
• and
• Remittance
• Services

• Local Plastic Cards
• Services

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.