NLB

Investor Presentation • Oct 4, 2016

NLB Group Presentation

H1'16 Results

Disclaimer

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The presentation has not been independently verified and no representation or warranty, express or implied, is made or given by or on behalf of NLB or any of their respective parent or subsidiary undertakings or associated companies, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, as to, and no reliance should be placed for any purpose whatsoever on the truth, fullness, accuracy, completeness or fairness of the information or opinions contained in this presentation or any other information relating to NLB, its subsidiary undertakings or, associated companies or affiliates, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available and no responsibility or liability whatsoever is assumed by any such persons for any such information or opinions or for any errors or omissions or for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. The information in this presentation is in draft form and has not been verified. All information presented or contained in this presentation is subject to verification, correction, completion and change without notice. This presentation does not purport to contain all information that may be required to evaluate NLB. In giving this presentation, none of NLB or any of their respective parent or subsidiary undertakings or associated companies, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, or any other party undertakes or is under any obligation to amend, correct or update this presentation or to provide the recipient with access to any additional information that may arise in connection with it. None of the foregoing persons accepts any responsibility whatsoever for the contents of this presentation, and no representation or warranty, express or implied, is made by any such person in relation to the contents of this presentation. To the fullest extent permissible by law, such persons disclaim all and any responsibility or liability, whether arising in tort, contract or otherwise, which they might otherwise have in respect of this presentation. Recipients should not construe the contents of this presentation as legal, tax, regulatory, financial or accounting advice and are urged to consult with their own advisers in relation to such matters.

Certain information in this document is based on public data obtained from sources believed by NLB to be reliable and in good faith, but no representations, guarantees or warranties are made by NLB with regard to accuracy, completeness or suitability of such data. NLB has not performed any independent review or due diligence of publicly available information regarding an unaffiliated reference asset or index. The opinions and estimates contained herein reflect the current judgment of the author(s) on the date of this document and are subject to change without notice. NLB does not have an obligation to update, modify or amend this document or to otherwise notify a reader thereof in the event that any matter stated herein, or any opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

This presentation has not been approved by any regulatory authority. This presentation does not, and is not intended to, constitute or form part of, and should not be construed as, any offer, invitation, solicitation or recommendation to purchase, sell, subscribe for or otherwise acquire, any securities of NLB in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as any inducement to enter into, any investment activity. This document should not be considered as a recommendation that any recipient of this document should purchase or sell any of the NLB financial instruments or groups of financial instruments or assets. This document does not include all necessary information, which should be considered by the recipient of this document when making a decision on purchasing any of the NLB financial instruments or assets. Each recipient of this document contemplating purchasing any of the NLB financial instruments or assets should make its own independent investigation of the financial condition and affairs, and its own appraisal of the NLB creditworthiness. We suggest that any corporate body or natural person interested in investing into NLB's financial instruments or assets should consult well-qualified professional financial experts and thus obtain additional information.

This document is for the use of the addressees only and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior, written consent of NLB. The manner of distributing this document may be restricted by law or regulation in certain countries, including (but not limited to) the United States. Persons into whose possession this document may come are required to inform themselves about and to observe such restrictions. By accepting this document, a recipient hereof agrees to be bound by the foregoing limitations.

NLB d.d is regulated by The Bank of Slovenia i.e. "Banka Slovenije, Slovenska 35, 1505 Ljubljana, Slovenia" and by The Securities Market Agency i.e. "Agencija za trg vrednostnih papirjev, Poljanski nasip 6, 1000 Ljubljana, Slovenia.

Overview of NLB Group

Key highlights

• The largest banking and financial institution in Slovenia
  • 100% owned by the Republic of Slovenia
  • Leading bank for retail and corporate clients in Slovenia, with ~710k active clients and ~24% market share by total assets
• Active in 6 attractive markets in South-Eastern Europe
  • 4 Top-3 banks and 1 Top-5 bank (by total assets)
• Underwent substantial transformation since 2013, achieving turnaround in operational profitability and asset quality
  • ~12% reduction in operating costs (H1'13-H1'16)
  • NPL ratio reduced from its peak 32.5% in Sep-2013 to 17.9% in Jun-16
  • 10 consecutive quarters of stable and positive performance
• Extensive distribution network of 364 branches
  • 113 branches in Slovenia (Jun-16)
• Attractive dividend payout ratio
  • 100% of 2015 NLB d.d. net profit paid out in August 2016

Note: (1) Bank Asset Management Company; Bad Bank of the Republic of Slovenia

(2) Government departments, municipalities and agencies; (3) Based on EBA definition

Key figures

Balance sheet (EURm)	Dec-14	Dec-15	Jun-16
Total assets	11,909	11,822	11,761
Loans to customers (gross)	9,053	8,351	8,312
Loans to customers (net)	7,415	7,088	7,090
Customer deposits	8,949	9,026	9,068
Attributable equity	1,343	1,423	1,497
P&L (EURm)	FY'14	FY'15	H1'16
Net interest income	330	340	157
Pre provision income	208	186	100
Net income	62	92	69
Key ratios (%)	Dec-14 / FY'14	Dec-15 / FY'15	Jun-16 / H1'16
CET1 ratio	17.6%	16.2%	16.6%
NPL ratio	25.1%	19.3%	17.9%
(3) NPE ratio	18.8%	14.3%	13.2%
NPL coverage ratio	68.7%	72.2%	76.0%
RoE	4.8%	6.6%	9.4%

Gross loans by customer (Jun-16)

71%

Total assets by country (Jun-16)

Background to 2013 recapitalisation

• Severe economic contraction in Slovenia during 2009 – 2013 drove NLB's NPLs to unprecedented levels
• An independent Asset Quality Review (AQR) and stress tests undertaken in 2013 by international consultants under the auspices of the Bank of Slovenia identified EUR1.7bn(1) capital shortfall
• To address that, a number of measures were taken for the recapitalisation of the bank

Equity evolution (Dec-12 to Dec-13, EURm)

2013 recapitalisation Journey so far

Note: (1) EUR1,464m under baseline scenario and EUR1,668m under adverse scenario; (2) EUR258m including accrued interest; (3) Gross book value of assets: EUR2,169m; Transfer price: EUR610m;

Journey so far

Transformation into a sustainably profitable client-oriented group, focused on core markets

Key initiatives implemented				Overview	Going forward
• Focus on core businesses 1 and markets and divestment of several			Retail banking	• Largest retail banking group by loans, deposits and number of branches • #1 in private banking and asset management business	Ongoing initiatives to transform operations
non-core subsidiaries and participations		Core Slovenia	Corporate banking	• Market leader in corporate banking with the largest client base in the country • Strong trade finance operations and other fee-based	Capitalise on attractive growth prospects of fee-generating
• Balance sheet reduction 2	Core			businesses	businesses
• % annual cost reduction 3 achieved			Financial markets(1)	• Largest brokerage network providing the best access to securities for clients • #1 lead organiser for syndicated loans in Slovenia	Implementation of differentiated risk adjusted pricing
• Improved risk management 4 policy and corporate governance		Core members	Foreign strategic markets	• Leading franchise in the SEE with 6 independent, well capitalised and self-funded subsidiaries • Only international banking group with exclusive focus on the SEE region	Increasing contribution to Group profits
• Focus on improved 5 business selection and pricing with clear minimum client RoE targets	Non-core	Non-core Slovenia (part of NLB d.d.)	Corporate lending Equity Investments Real estate(2)	• Assets booked under NLB d.d. or non-core subsidiaries funded via NLB d.d. • Investments in listed and private Slovenian companies	Targeted exit by 2020 from selected ancillary businesses
• Emphasis on NPL recovery 6 and improving asset quality		Non-core members	Leasing, factoring other(3) and	• Various run-off businesses including leasing and factoring in the sale or liquidation processes • Real estate SPVs consolidating investments in SEE	and lending to certain sectors

2013 recapitalisation Journey so far

Note: (1) Segment includes the income generated by the liquidity reserves, surplus from funds transfer pricing to other business segments in Slovenia and fees generated from investment banking and custody services; (2) GREAM; (3) NLB Leasing Ljubljana, NLB Interfinanz, Other Leasing, REAM and other Non-core members

Journey so far (continued)

Transformation into a sustainably profitable client-oriented group, focused on core markets

Smaller and stronger balance sheet (EURm) RoE Key initiatives implemented • Focus on core businesses and markets and divestment of several non-core subsidiaries and participations • Balance sheet reduction • % annual cost reduction achieved • Improved risk management policy and corporate governance • Focus on improved business selection and pricing with clear minimum client RoE targets • Emphasis on NPL recovery and improving asset quality 1 2 3 4 5 6 13,303 929 14,233 -274

Core and Other Non-core Staff Admin 11,305 10,997 11,070 11,095 1,185 ^{912 752 667} 12,490 11,909 11,822 11,761 dec-12 dec-13 dec-14 dec-15 jun-16

19% cost base reduction (EURm)

50% reduction of NPLs (NPL stock, EURm)

2013 recapitalisation Journey so far

Slovenia macro and banking backdrop

Slovenia: Fully integrated into European institutions

• Member of the EU and the Eurozone
• Export-driven economy with value-added export goods
• Well educated labour force
• Solid Parliamentary support for coalition Government (in place until Sep-18)

EUR 38.5bn nominal GDP

83.2%

EUR 19k GDP/capita vs EUR 11k CEE average(1)

Govt debt/GDP

A/A-/Baa3 Sovereign rating (S&P/Fitch/Moody's) 2.3% real GDP growth

8.4% unemployment rate(2)

0.8% of GDP primary surplus

Recent milestones

Source: Republic of Slovenia, IMF WEO as of Apr-16, Bloomberg as of 20-Jun-16, Statistical Office of the Republic of Slovenia Note: All macroeconomic data refer to FYE 31-Dec-15

(1) CEE countries include Poland, Romania, Czech Republic, Slovakia, Hungary; (2) Survey unemployment rate

Slovenian economy growing at 2.3% compared to 1.5% Eurozone growth, driven by exports and private consumption

Real GDP growth

Recovery driving lower unemployment and higher consumer confidence(1)

Source: Statistical Office of the Republic of Slovenia, IMF, Global Insight, Press, OECD, National Bank of Slovenia

Macro update

• Slovenian economy grew by 2.3% in 2015 stronger than Eurozone average of 1.5%
• Drivers included 4.4% exports growth and continued increase in private consumption (1% in 2015)
• Economic recovery drove unemployment rate down by 1.2% since 2013
• Consumer confidence increased by 35 points since its 2012(2) lows, driving household consumption growth
• Relatively low household indebtedness providing sufficient room for lending growth

GDP by source and activities (EURbn)

Note: (1) Consumer confidence indicator represents score average from surveys about expected household financial situation, general economic situation, unemployment, and savings over next 12 months; Scale of -100 to +100;; (2) Consumer confidence index reached -45 as of November 2012; (3) Survey unemployment rate

Slovenian banking sector turnaround with vastly improved funding, asset quality and capital position

Sector NPE ratio evolution(1)

Sector CET1 and L/D ratio evolution

Overview of 2013 extraordinary measures

• Significant contraction of economic activity since 2009 paired with high indebtedness of corporate sector drove NPEs to unprecedented levels
• 2013 Asset Quality Review (AQR) identified EUR3.3bn(2) capital shortfall at systemic banks

• Extraordinary measures included:

  • write-off of existing shareholders and holders of subordinated instruments
  • capital increase by RoS 100% state ownership of banks (NLB, NKBM, Banka Celje and Abanka)
  • transfer of EUR 3.3bn non-performing claims(3) to State-owned BAMC(4) leading to substantial losses for local banks

• Profitability of Slovenian banking sector returned to positive levels in 2015

• NPE ratio (according to the harmonised definition of EBA) decreased to 10.8%, as a consequence of active NPE management by local banks
• L/D ratio decreased by ~60% since 2010 to 81% as a result of stricter loan policies, low demand for loans and "cash-rich" retail and corporate sectors
• Sale of NKBM completed while Abanka and Banka Celje completed merger

Source: Bank of Slovenia, European Commission, Press, BAMC

Note: (1) EBA definition applied since Dec-15; (2) Adverse scenario assuming Core Tier 1 ratio of 6%; (3) EUR3.3bn exposure included equity claims and performing assets; (4) Bank Asset Management Company

Key highlights

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

Dominant player in the Slovenian banking sector 1

Market leader across products in Slovenia

Source:Company information

Note: (1) Gross loans to customers: NLB and Abanka: Jun-16; SKB, Nova KBM and UniCredit: Dec-15 (latest available); Customer deposits: NLB and Abanka: Jun-16; SKB, Nova KBM and UniCredit: Dec-15 (latest available); Branches: NLB and Abanka: Jun-16; SKB, Nova KBM and UniCredit: Dec-15 (latest available); (2) Calculated based on net loans

NLB's countries of presence outside Slovenia represent attractive markets, with significant growth potential 2

• NLB's SEE footprint outside of Slovenia covers 5 countries with EUR65.6bn GDP and 15.4m population
• Attractive growth markets, with 2.8% real GDP growth, only EUR4k GDP/capita and 21% household indebtedness as % of GDP

	Macedonia	Bosnia(1)	Montenegro	Kosovo	Serbia	Total / Average(4)	Slovenia
Population (Dec-15, m)	2.1	3.8	0.6	1.8	7.1	15.4	2.1
GDP(3) (2015, EURbn)	9.0	14.4	3.6	5.7	32.9	65.6	38.5
GDP/Capita(3) (2015, EURk)	4.3	3.8	5.8	3.1	4.6	4.3	18.7
Real GDP growth (2015)	3.7%	2.8%	3.2%	3.5%	0.7%	2.8%	2.3%
Inflation (2015)	-0.3%	-1.0%	1.4%	- 0.5%	1.5%	0.2%	-0.5%
Government debt/GDP (2015)	39%	46%	66%	19%	77%	49%	83%
Household debt /GDP (2015)	23%	27%	27%	13%	19%	22%	28%(5)
Currency	MKD	EUR(2)	EUR	EUR	RSD	n/a	EUR
Credit rating (Moody's, S&P)	n/a / BB-	B3 / B	B1 / B+	n/a / n/a	B1 / BB-	n/a	Baa3 / A

Source: IMF, World Bank, Central banks data, Bloomberg

Note: (1) Bosnia and Herzegovina is comprised of 2 entities, The Federation of Bosnia and Herzegovina and Republika Srpska; (2) Official currency is BAM – Bosnia-Herzegovina Convertible Mark, pegged to EUR; (3) Converted at average FX rate for 2015; (4) Excluding Slovenia; (5) Household credit YE2015 from BoS

Top position in target SEE countries 2

Unified brand across 6 markets since 2015

• Leading franchise in the region based on total assets and number of branches(1), with network of 251 branches and 1.1m active clients(2) in SEE
• The only international banking group with exclusive focus on the region
• Independent, well capitalised and self-funded subsidiaries

	Macedonia	Bosnia		Montenegro	Kosovo	Serbia
	NLB Banka Skopje	NLB Banka Banja Luka	NLB Banka Sarajevo	NLB Banka Podgorica	NLB Banka Prishtina	NLB Banka Beograd
NLB ownership (%)	87%	100%	97%	99%	81%	100%
No. of branches (#)	51	64	38	18	46	34
Market share %	16.6%	18.4%(3)	5.5%(4)	14.0%	14.5%	1.0%
Net interest margin %	4.3%	2.7%	3.3%	3.3%	5.3%	6.2%
Cost/ income %	42.2%	50.7%	61.0%	64.6%	40.9%	89.9%
Loans/ Deposits %	76.7%	63.9%	77.0%	66.8%	72.3%	51.5%
RoE	11.8%	14.7%	8.1%	9.6%	14.9%	2.7%
Total assets (EURm)	1,120	612	476	485	465	236

Note: Data as of Dec-15, data for # of branches as of June-16; Banks market share based on total assets;

(1) Comparison to banks present in same countries; (2) Excluding NLB d.d.; (3) Market share in the Republika Srpska; (4) Market share in the Federation of BiH

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

Strong revenue performance driven by stable NIM and resilient fee income 3

NIM remains stable despite monetary easing in Eurozone (Group, %)

NIM (NLB d.d.) NIM (NLB Group) NIM (Core International)

Resilient fee income (Group, EURm) International supporting revenue growth in the Core operations (Group, EURm) (1)

Source: Company information

Note: (1) The sum of revenues /costs of segments is greater than consolidated under NLB Group; the difference is resulting from the activities between segments as those appear as revenue under one segment and as costs under other segment, and therefore are not netted on the segment level; Geographical analysis includes the division between geographical segments according to the country where it is located of each of the NLB Group

Profitability improvement in all key business segments, with reduction of non-core losses 3

Profitable, client-oriented group, focused on core markets Core segments consistently profitable, key activities

increasingly profitable (EURm)

• Profit before tax of key business activities increased by €10.5m or +18% y-o-y vs H1-15, attributable to increase in net interest income and loan volume growth. Including the restructuring and workout unit, profit before tax increased by €16.0m or +33% y-o-y

• Foreign strategic markets continued positive trend showing an €11.7m increase y-o-y vs H1-15

• Non-strategic markets and other activities drag on profitability considerably lower y-o-y

Source: Company information Note: (1) Segment includes the income generated by the liquidity reserves, surplus from funds transfer pricing to other business segments in Slovenia and fees generated from investment banking and custody services; (2) GREAM; (3) NLB Leasing Ljubljana, NLB Interfinanz, Other Leasing, REAM and other Non-core members; (4) Includes adjustment for inter-segmental activities

Cost reduction driven by network optimisation, HQ personnel and non-personnel reductions and non-core 3

Impressive cost reduction across the board (EURm)

Effective rationalisation of headcount and network (#)

• Strong management commitment to strict cost management and optimisation measures
• Headcount dropped by 12.6% over 2012 – H1'16 driven primarily by Slovenia Core and Non-Core
• Closure of non-profitable branches already took place across NLB Group, with high retention rate by transferring clients' business to nearest branches

Successful business transformation results in sustainable profitability 3

Profit after tax of NLB Group – evolution YoY (EURm)

Source: Company information Note: (1) Gains less losses from capital investments in associates and joint ventures

Funding structure driven by deposits and complemented by established wholesale markets access 4

Strong retail franchise provides stable and price insensitive deposits base (EURm)

• Total liabilities fell by EUR 134.4m mainly due to repayment of the TLTRO repayment in the amount of EUR 120.2m
• Deposits from customers increased accounting for 77% of the total funding of NLB Group.

Source: Company information

Note: Geographical analysis includes the division between geographical segments according to the country where it is located of each of the NLB Group

Well capitalised franchise 4

Solid capital position with large and stable deposit base

• Highest quality capital (CET1 mostly) at Group and Bank level
• Immaterial dependency on on-balance sheet DTAs

RWA expansion in 2015 driven by one-off increase in SEE sovereign risk weighting (EURm)

CET1 ratio comfortably above regulatory requirements(1)

Source: Company information

Note: (1) Dec-15 CET1 capital and CET1 ratio calculation reflects the result and dividends of 2015; Jun-16 CET1 capital and CET1 ratio do not reflect the H1'16 profits; (2) Off-balance sheet DTAs represent the reduction of total DTAs; NLB d.d. recognised DTAs accrued on the basis of temporary differences in an amount that is expected to be reversed in the foreseeable future (i.e. within five years based on future profit projections); Out of EUR290m Jun-16 deferred tax assets, EUR223m are generated from tax losses which can be used to reduce annual tax base of NLB by 50%

Core international banking subsidiaries represent a selffunded source of profits, with solid capital adequacy 4

Subsidiaries self-funded by design (L/D ratio(2) International contributes >40% of Group profit (Jun-16) , Jun-16)

Attractive growth trajectory (Total assets(1), EURm)

Capital adequacy comfortably above local requirements

Source: Company information Note: (1) Sum of total assets of 6 core international banking subsidiaries; (2) Calculation based on net loans

Geographical analysis includes the division between geographical segments according to the country where of each NLB Group member is located

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

Dedicated internal NPL units in NLB d.d. fully operational 5

Diversified loan portfolio 5

Dominated by Slovenian assets, focused on core markets and cautious risk taking

Gross loans and advances by currency and rate type (Group, Jun-16)

• No large concentration in any specific industry or client segment
• NLB's lending strategy focuses on its core markets of retail, SME and selected corporate business activities
• Credit business restricted for business sectors which are currently viewed as risk-bearing in an over-average extent (construction, transport and financial holdings)
• Great emphasis is also placed on further improvement of credit portfolio
  • Intensive and proactive handling of problematic customers
  • Changes in the credit process
  • Early warning system for detecting increased credit risk

Improving structure of credit portfolio (gross loans) by client credit ratings (Group)

Source: Company information Note: Gross loans and advances represents credit portfolio, including loans to banks and obligatory reserves at central banks

NLB has driven a turnaround in asset quality 5

Further improvements driven by active NPL management and economic recovery

Active workout drove NPL ratio down despite falling loan volumes (Group, EURm)

902

CoR Net (bps) Increasing NPL provision coverage (Group, %)

Group NPL to NPE bridge (Jun-16, EURm)

Reduction of NPLs remains a key focus

• Gross NPLs at Group level reduced by EUR147m in H1'16
• Positive momentum expected through active portfolio management and macro recovery

NPLs are adequately covered

• Coverage ratio reached 76% in Jun-16 due to repayments, write-offs and cashed collateral

Active approach to NPL management

• Strong emphasis on restructuring (over 55% of NPLs in restructuring process)
• Other NPL management tools include: debt collection, seizure of collateral, sale of claims, active marketing of pledged

Note: NPL was defined until December 2014 as loan exposure to D and E clients/claims and delays over 90 days from loans to A, B and C classified clients. Since customers with loans (in arrears over) with 90 days past due should be classified in non-performing grade (D or E), NPL definition changed and from 31.12.2014 include only D and E exposures. Information on the NPL of NLBG is presented in accordance with the CRR IV consolidation, where exposure to companies of the Group Prvi faktor is taken into account under the principle of proportionate consolidation (i.e. 50%); (1) Represents credit impairments and provisions

⁵ Disposal of ca EUR500m of non-performing exposures

	Slovenia Corporate	Slovenia Retail
Perimeter	• Corporate NPL loans of gross book value of EUR396m	• Total consumer NPL loans of gross book value of EUR104m
Status	• Announced on 30 June 2016 • Closing expected in Q3'16	• Announced on 19 July 2016 • Closing expected in Q3'16
Buyer	• International investor	• International investor
NPL reduction	• Gross NPLs to be reduced in Q3'16 (equal to 2% reduction to NPL ratio)	by EUR233m
NPL coverage	• Minor increase in NPL coverage expected in Q3'16	from loans transfer
Additional P&L impact	P&L impact of EUR27m(1) •	already reflected in Q2'16 results

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

We have a clear strategy to address current challenges 6

Key trends and challenges

Sector and regulation	Macro
• Regulatory interventions • Further complexity through new regulations (TLAC, Basel IV, IFRS9) • Market consolidation	• Low interest rate environment • Heightening political and geopolitical risks • Subdued credit demand
Social and consumer	Products and technology

Key priorities

Focus on customer experience

• Omni-channel product distribution
• Partnership programmes
• End-to-end customer solutions

Optimised product offering

• Pricing optimisation
• Simplified product offering
• Further focus on fee-based products

Simplicity champion

• Operational optimisation
• Right sizing workforce
• IT transformation

Enhanced distribution

• Migration to digital channels
• Sales process optimisation
• Improved customer insight

Improved risk management

- Optimised risk processes

• Improved risk modelling
• Streamlined risk governance

Medium-Term Objectives 6

Delivering growth, sustainable returns and attractive payout to shareholders

Source: Company information Note: (1) Based on EBA definition

(2) % of consolidated group profit

32

Key highlights of NLB Group

Largest bank in Slovenia and a strong player in selected SEE markets

Additional materials

Successfully managing EC restructuring plan commitments

Restructuring period to end on 31 December 2017, subject to successful completion of restructuring commitments

	Commitment	Status	Comment
	 Reduction of balance sheet	Ongoing	~EUR 0.7bn reduction since 2013
g n uri ct u str e R	 Reduction of operating expenses		Completed
	 Divestment of several subsidiaries and participations	Ongoing	~EUR 0.2bn reduction since 2014
	 Reduction of credit business in several sectors		Completed
	 Restrictions on business with foreign clients, risk management and credit policies		Completed
al ur o vi a h e B	 NLB must pay dividends at the lower of :  50% (until 2017) or 100% (in 2018) of the excess capital above the minimum capital requirement(1) plus a capital buffer of 100bps; or  Net income for the relevant year		In compliance
	 Acquisition ban		In compliance
	 Republic of Slovenia to reduce stake in NLB to 25%+ 1 share until YE'17	Ongoing

Note: (1) Applicable minimum capital requirement on the consolidated level (including Pillar 1 and 2)

All commitments are in force until end 2017 except dividend commitment (until 2018 payout) and reduction of RoS shareholding in NLB

Key financial data and performance NLB Group (1/2)

EURm	FY'13	FY'14	FY'15	H1'15	H1'16
Net interest income	234	330	340	170	157
Net fee and commission income	138	140	139	69	67
Income from financial operations	(15)	38	4	(1)	16
Other Income	(8)	3	1	6	3
Operating Income	348	511	483	244	243
Staff costs	(175)	(163)	(163)	(80)	(82)
General expenses	(113)	(105)	(103)	(49)	(47)
Depreciation and amortization expenses	(44)	(36)	(32)	(16)	(14)
Operating expenses	(333)	(304)	(298)	(145)	(143)
Pre Provision Income	16	208	185	99	100
Extraordinary measures	(288)	0	0	0	0
Impairment losses on credit risk	(902)	(120)	(51)	(34)	(16)
Other impairments	(169)	(22)	(32)	(7)	(5)
Gains/Losses on associates and JVs	(27)	3	4	2	3
Profit / (Loss) before income tax	(1,369)	69	107	60	82
Income Tax	(74)	(4)	(11)	(5)	(10)
Profit/ (Loss) after income tax	(1,442)	65	95	55	72
Profit / (Loss) attributable to shareholders	(1,442)	62	92	53	69

Key financial data and performance NLB Group (2/2)

EURm	Dec-13	Dec-14	Dec-15	Jun-16
ASSETS
Cash and balances with Central Banks	1,251	1,128	1,162	1,088
Financial instruments	2,755	2,646	2,743	2,718
Loans and advances to banks	225	271	432	480
Loans and advances to customers (net)	7,744	7,415	7,088	7,090
Investments in associates and JV	28	38	40	41
Intangible assets	55	43	39	36
PP&E	239	215	208	201
Other assets	194	154	110	108
Total Assets	12,490	11,909	11,822	11,761
LIABILITIES & EQUITY
Deposits from banks	37	62	58	50
Deposits from customers	8,261	8,949	9,026	9,068
Borrowings	1,282	731	551	505
ECB funding	1,267	120	120	0
Securities and other liabilities	372	678	616	614
Total Liabilities	11,219	10,540	10,371	10,237
Shareholders' funds	1,247	1,343	1,423	1,497
Non Controlling Interests	24	26	28	27
Total Equity	1,271	1,369	1,450	1,525
Total Liabilities & Equity	12,490	11,909	11,822	11,761

Key financial data and performance NLB d.d. (1/2)

EURm	FY'13	FY'14	FY'15	H1'15	H1'16
Net interest income	157	227	208	108	87
Net fee and commission income	101	101	98	49	47
Income from financial operations	7	34	9	7	13
Other Income	(6)	3	(2)	2	1
Operating Income	260	364	313	165	149
Staff costs	(111)	(102)	(102)	(51)	(52)
General expenses	(75)	(67)	(64)	(31)	(29)
Depreciation and amortization expenses	(27)	(24)	(21)	(11)	(10)
Operating expenses	(212)	(193)	(187)	(92)	(90)
Pre Provision Income	47	171	126	72	59
Extraordinary measures	(288)	0	0	0	0
Impairment losses on credit risk	(705)	(84)	(28)	(39)	(10)
Other impairments	(522)	(9)	(60)	(4)	(1)
Gains/Losses on associates and JVs	0	5	14	14	29
Profit / (Loss) before income tax	(1,467)	83	52	43	77
Income Tax	(74)	(1)	(8)	(3)	(6)
Profit/ (Loss) after income tax	(1,540)	82	44	40	71
Profit / (Loss) attributable to shareholders	(1,540)	82	44	40	71

Key financial data and performance NLB d.d. (2/2)

EURm	Dec-13	Dec-14	Dec-15	Jun-16
ASSETS
Cash and balances with Central Banks	591	434	497	484
Financial instruments	2,177	2,091	2,146	2,182
Loans and advances to banks	161	159	345	408
Loans and advances to customers (net)	6,129	5,700	5,221	5,146
Investments in associates and JV	277	353	353	354
Intangible assets	45	34	30	26
PP&E	108	97	95	91
Other assets	20	17	21	22
Total Assets	9,507	8,886	8,707	8,714
LIABILITIES & EQUITY
Deposits from banks	74	91	97	83
Deposits from customers	5,747	6,300	6,298	6,419
Borrowings	1,031	557	416	371
ECB funding	1,267	120	120	0
Securities and other liabilities	294	613	534	526
Total Liabilities	8,414	7,681	7,465	7,398
Shareholders' funds	1,093	1,205	1,242	1,316
Non Controlling Interests	0	0	0	0
Total Equity	1,093	1,205	1,242	1,316
Total Liabilities & Equity	9,507	8,886	8,707	8,714