IMB GROUP
IMB GROUP
Ukraine’s Leading Consumer
Lending Pure-play
• IMB Group was formed in May 2006 as a consumer finance holding, incorporated
in Cyprus, holding 100% stakes in:
– International Mortgage Bank (IMB), a Ukrainian mortgage lending bank, established in
January 2005, and
– Favorit Kapital (Family Credit brand), a Sales Finance credit intermediary, selling point-
of-sale loans for the Balance Sheet of IMB, established in October 2005.
• IMB Group is the leading pure-play consumer lending platform in Ukraine,
offering its customers Home Acquisition, Home Equity, and Sales Finance loans,
bank accounts, deposit services, and Credit Cards (from 2007).
IMB GROUP
Market
• The Ukrainian consumer lending market is Ukrainian Consumer Lending Stock (USD mn, 1st of January)
experiencing explosive growth 7,000 6,566
• Ukraine follows the growth trends of the
6,000
Central European consumer finance markets,
but is developing much faster due to: 5,000
– utilization of CEE experience 4,000
– strong macroeconomic fundamentals 3,000
2,891
– rapid growth in personal incomes 2,000 1,758
– accelerated entry of foreign players 1,000
272
645
186
• A catching-up to the Central European -
2001 2002 2003 2004 2005 2006
current per capita level is expected within 4-5
years, implying a 10-fold market growth
potential within this period. Ukrainian Consumer Lending Stock in 2006 (USD mn)
• Key growth segments include 12,000
– Mortgages 10,000
8,930
9,633
– Sales Finance 8,000 7,638
8,225
7,038
– Credit Cards 6,566 6,688
6,000
– Car Loans
– Secured and Unsecured Cash Loans 4,000
• IMB Group was created to take advantage of 2,000
the growth opportunity in the highest growth -
segments of the Ukrainian banking market: 1/1/2006 1/2/2006 1/3/2006 1/4/2006 1/5/2006 1/6/2006 1/7/2006
Mortgages, Secured Cash Loans, Sales
Finance, and Credit Cards.
IMB GROUP
History
2004 - February: Horizon Capital starts an “International Mortgage Program” in cooperation with ProCredit Bank
2005 - January: International Mortgage Bank receives a banking license from The Bank of Ukraine. 100% of the shares are
owned by Horizon Capital.
2005 - March: IMB signs an agreement with Overseas Private Investment Corporation (USA) for $30 m long-term debt financing
2005 – May: IMB acquires from ProCredit Bank the International Mortgage Program portfolio
2005 - October: Horizon Capital (USA) and Amber Capital (Poland) set up Favorit Kapital –
a credit intermediary for Sales Finance
2005 – November: Favorit Kapital starts distributing IMB’s Sales Finance loans under the brand
“Family Credit”
2006 - April: IMB Group - a holding company in Cyprus - is formed jointly by the
shareholders of IMB and Favorit Kapital.
2006 – May: Gregory Krasnov is appointed Chief Executive Officer of the IMB Group Holding. A
new business plan and strategy are created.
2006 - June: IMB signs an agreement with Financierings-Maatschappij voor Ontwikkelingslanden
(Netherlands) for $10 m long-term debt financing
2006 – June: IMB Group issues 46% of new shares to new western shareholders and raises
$31.5 mn of additional equity
2006 – June: Joel Epstein retires from the position of General Director of the Global Consumer
Lending Business of AIG Group and becomes Chairman of the Board of IMB Group.
2006 – September: IMB Group shares start trading on the Frankfurt Stock Exchange
through depositary receipts
IMB GROUP
Shareholders
Portfolio Investors
IMB Group’s controlling
shareholder is Emerging Europe
Growth Fund, LP, managed by
54% 46% Horizon Capital, a leading private
equity fund manager in Ukraine and
Moldova with USD 200 million under
management.
IMB Group Public Ltd
(Cyprus)
A Polish investments company, which
represents the interests of members
100% of the management team and
100% members of the Board of Directors of
the Group.
Portfolio Investors
About 15 well-known international
investment funds including Goldman
Sachs and Farallon Capital.
IMB GROUP
Management
G. Krasnov
Chief Executive Officer
Work experience – 10 years in Private Equity at Bank of America
(Chicago, Warsaw, London, Scandinavia) and Innova Capital
(Warsaw)
Education – Cambridge University, Arizona State University (summa
cum laude)
Citizenship – USA (naturalized, Ukrainian national)
Lanugages –English, Russian, Polish, German, Ukrainian.
Y.Blashchuk
CEO – International Mortgage Bank
Head of Corporate Relations - Group
Work experience – VA Bank, National Bank of Ukraine
Citizenship – Ukraine
Languages – English, Russian, Ukrainian.
A.Vrublevsky
Chief Financial Officer
Work experience – Deloitte & Touche
Citizenship – Ukraine
Languages – English, Russian, Ukrainian.
Middle-management is comprised of an international group of
professionals, including a significant Central European contingent
IMB GROUP
Country-Wide Network
Lutsk Chernihiv
Rivne
Zhytomyr Sumy
Kyiv
Lviv Poltava
Kharkiv
Ternopil Khmelnytskiy
Kremenchuk
Cherkasy Luhansk
Ivano-Frankivsk
Uzhgorod Dnipropetrovsk Donetsk
Vinnytsia
Chernivtsi
Kirovohrad
Regions with operating outlets Mariupol
Mykolayiv Zaporizhya
Odesa
Outlets to be launched in Q3 2006
Kherson
IMB Head office
Outlets of Family Credit
Simferopol
IMB GROUP
Sales Finance
Business Line
Favorit Credit Action
• Favorit Kapital was formed in November 3 000 6 000
2005 as a credit intermediary, and is 2 500 5 000
operating under the “Family Credit”
brand. 2 000 4 000
USD ths
1 500 3 000
• To date, Family Credit has achieved the
1 000 2 000
following:
– granted over 31,000 loans for more than 500 1 000
$13 m
– established a nation-wide network of 300 -
January-06 February-06 March-06 April-06 May-06 June-06 July-06
-
POS Volume of Loans Granted Number of loans granted
– is currently disbursing ca. 300 new loans
per day
– is currently adding 2-3 new POS per day
• Management estimates Family Credit’s
Q4 2006 market share of the Ukrainian
Sales Finance market at over 5% (on a
run-rate disbursements basis). This puts
Family Credit in the Top 10 rank in Sales
Finance in Ukraine.
IMB GROUP
Mortgage
Business Line
IMB Mortgage Sales
• IMB is leveraging Central European experience to focus
its sales efforts in the proactive management of the 4 000 90
Broker/Realtor channel. This method of distribution: 80
3 500
– Reduces customer acquisition costs
– Eliminates the need for significant investment in the 3 000
70
branch rollout
USD ths
60
– Creates an atttractive proposition for the client from: 2 500
• specialization of sales personnel, and 50
2 000
• attractive rates, which are a refection of the lower
40
cost structure then that of most of IMB’s branch-
1 500
based competitors 30
• Since the launch of operations in January 2005 IMB 1 000
20
granted over 650 Home Acquisition and Home Equity
(Secured Cash) loans for the total amount exceeding $24 500
10
mn.
- 0
• All of the mortgages are issued in USD and are Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06
collateralized by real estate. Volume of Loans Granted Number of loans granted
• IMB’s mortgage portfolio growth has accelerated in
2006, as monthly mortgage issuance grew by 77% to Distribution of IMB loans by Type & Term
reach an all-time record USD 3.5 million in July.
17% 13%
August disbursements of $4.5 mn are expected.
• IMB’s end-July mortgage portfolio comprised 10 to 15 year 10-Year HA
Home Acquisition loans (57% of the total) and 5 to 10 year 15-Year HA
Home Equity loans (26%) issued mainly to middle-to-high Bridge Loans
income borrowers in Kiev. 5-Year Home Equity
• Home Equity loans issued by IMB are typically primary 34%
10-Year Home Equity
mortgages secured against secondary market Other
33%
apartments. Youth Loans
3%
IMB GROUP
Growth Drivers
• Mortgage
– Geographic expansion outside of Kiev (in progress)
– Product range extension (suburban SFR)
– Broker / realtor channel as the primary distribution focus
– Corporate channel / affinity programs as the secondary distribution focus
– Pro-active customer group targeting for Home Equity loans
• Sales Finance
– Retail chains
– Agent solution
• Credit Cards (from Q1 2007)
– Cross-sell to Sales Finance clients
– Cross-sell to Mortgage clients
– Co-branded with retail chains
– Corporate channel / affinity programs
IMB GROUP
Loans Portfolio
Portfolio of IMB Group
35
30
25
USD mn
20
15
10
5
0
January-06 February-06 March-06 April-06 May-06 June-06 July-06
Volume of Mortgage Loans Outstanding Volume of Consumer loans outstanding
Portfolio (USD) January February March April May June July
Mortgage 9,414,959 10,391,782 11,996,483 13,912,890 15,380,902 19,316,971 21,516,382
Mortgage as % of
Portfolio 87% 84% 78% 75% 71% 72% 69%
Sales Finance Loans 1,457,329 2,026,303 3,408,711 4,695,146 6,200,865 7,351,050 9,475,031
Total 10,872,288 12,418,085 15,405,194 18,608,036 21,581,767 26,668,021 30,991,413
With average month-on-month Portfolio growth rate of 23% in 1H 2006,
IMB is Ukraine’s fastest growing bank.
IMB GROUP
Future Plans
• IMBG has recently completed a $31 mln private placement, in
conjunction with which its GDRs were listed on Frankfurt Stock
Exchange.
• IMBG expects to reach loans portfolio of
– $75-85 mln at YE 2006 and
– $250-300 mln at YE 2007
• IMBG is currently considering various debt financing options,
including public and privately placed bonds (Ukrainian and
international), warehousing facilities, and securitization.
• Subject to the achievement of management projections on
portfolio growth, regulatory capital adequacy requirements are
likely to drive IMBG to effect an equity increase in mid-2007.
• IMBG would be likely to finance such equity increase through an
international Initial Public Offering.
IMB GROUP
Contact
Gregory Krasnov
Chief Executive Officer
IMB Group (Public) Ltd
c/o International Mortgage Bank
Forum Business City, Building 4А
Pymonenka str. 13
Kyiv 04050, Ukraine
Tel: +380 44 492 9092
Fax: +380 44 492 9099
Mob: +380 50 448 1825
E-mail: gkrasnov@imb.com.ua
IMB GROUP