Alior Bank S.A.

Management Reports • Feb 6, 2023

Your Bank of everyday life, your Bank for the future

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Alior Bank S.A. Strategy 2023-2024

February 2023

For almost 15 years, we have been undergoing constant development while progressively implementing the adopted plans and assumptions. Our subsequent strategies resonated widely and set new standards. The term "Digital Disruptor" has become a permanent element of the financial sector vocabulary. With this strategy, we went beyond the framework of traditional banking, relying our offer on modern digital solutions. The next stage of development rendered it possible for us to prove that Alior is "More than a Bank". Thanks to the implementation of this strategy, our customers not only used banking services but also a wider range of additional services. Our then innovations have now become standard in the banking sector.

The current strategy "Your Bank of everyday life, your Bank for the future" will lay its focus on everyday banking and ensuring customer convenience and business development. We based it on three pillars: a higher culture of mobility, support for entrepreneurship and a modern bank . We do understand current trends, which is why we desire to be a strong institution focused on building the main relationship through digital channels.

As far as the retail customer sector is concerned, the innovative ecosystem of Alior Pay services will ensure a higher culture of mobility. It will make it possible to encapsulate almost the whole of individual banking in an inclusive and intuitive mobile application.

We will support micro-, small- and medium-sized enterprises. Because they are the cornerstone of the Polish economy. This segment will also be developed in reliance on new technologies, thanks to the new digital banking system and product platforms for business customers.

The development of IT technologies we will focus to revolve around the efficiency and security of agile-supported processes. Business users can count on improving key functionalities. Through advanced analytics and proactive management, we will improve the risk assessment and decision-making path. Our credit process will stand out by its speed and comprehension of the customer's needs.

As much as 80 percent of our capital expenditures is related to the strengthening of the technological foundations of growth, including but not limited to data management, new electronic banking, and a new credit system in the business customer segment. In the long run, this will allow growth in the number of relational and digital customers and maintain key indicators at attractive levels.

Our Bank means a good investment. We have been strengthening the capital base and reducing portfolio risk. The ESG area is to be an important factor when it comes to planning the development of all business lines. The sustainable development we have pursued equals real actions, which we want our customers and partners to be inspired by.

Alior Bank is, first and foremost, people. It is them on whom we set our focus. This very fact is reflected in one of the highest employee loyalty indicators in the banking sector. We do find it crucial to improve professional qualifications and use them effectively. Accordingly, we will extend the offer of an internal development programme or access to additional medical tests. We are building a friendly workplace, which is proved by industry rankings – both Polish and international.

Alior Bank is your Bank of everyday life, your Bank for the future. Evidence to confirm this slogan you can find in the new strategy.

Grzegorz Olszewski President of the Management Board of Alior Bank S.A.

Macroeconomic environment

demanding conditions will temporarily cool down the potential of lending

GDP (viable, %, y/y)

CPI inflation - average (%, y/y)

• The consequences of combating inflation will reduce the GDP rate of growth. The economic situation in Poland will continue to be supported by a strong labour market. New technologies will be not only an opportunity but also a growing competitive pressure.
• It will slow down the dynamics of deposits. Free household funds will be limited by inflation and high interest rates. High costs and tighter regulations will affect lending.

Average annual unemployment rate (%)

• Structural changes in working capital financing as well as investment projects as part of the green transformation and ESG financing will have a positive impact on the business sector. The prospect of obtaining additional funds from the KPO will be important.
• The fundamental risk in the sector will still rest in legal risks relative to the portfolio of FX housing loans and the high volatility of the regulatory environment. Black swans (namely uncertainty about the impact of the war in Ukraine, epidemiological risk, cybercrime) will pose an additional threat to banks.

We will effectively exploit Alior Bank's advantages

as well as keep develop dynamically notwithstanding the hardships of the market environment

Profitable and stable business model Agility in Alior Bank's DNA

High resilience of the business model confirmed by records revenues in 3Q2022 (excluding one-off events)	1 292M PLN
Experience of dynamic growth (in a difficult macro environment)	Launch in 2008
Negligible share of the CHF mortgage loans portfolio (no significant impact on the results)	0,2%*
Effective solution to historical challenges Consistent costs of risk (CoR) reduction	-0,96 pp.**
We are part of the largest financial institution in Poland and Central and Eastern Europe

Innovativeness of a startup and stability of public trust institutions
Solid IT architecture
One of the largest IT teams among banks in Poland	700+ persosns
High employee engagement	56%***
Young team open to innovation	62% Generation Y

* The volume of CHF mortage loans in gross customers receivables as at 30.09.2022 ** CoR – 09/2022 (1.47%) vs 09/2019 (2.43%).

*** Emloyee engagement rate 2022.

Our advantage also rests with a distinctive brand

and high customer satisfaction

Brand and customer loyalty

Strong brand

4th result in the ranking of the strength of banking brands*

Unique communication format

"The gentleman in the bowler hat" is the most recognisable and effective icon in banking communication

Alior Bank's NPS another year in TOP3**

2nd NPS result

among young customers (18-29 years old)**

We want to be a bank

for customers, investors and employees

Your Bank of everyday life, your Bank for the future

More than bank

Digital Disruptor

We draw benefits from our experience:

• Leader in consumer finance
• Successful digitisation so far
• Successful historical scale building (also amid the difficult conditions of the 2008 financial crisis)

We will take advantage of market opportunities and be the bank for everyday life and for the future:

• Universal bank focused on building a core digital relationship
• Maintaining the leading position in financing purchases of retail customers
• Balanced loan portfolio with a diversified business customer base
• Leader in the use of technology with an improved production model supported by the competence and employee engagement
• Effective data monetisation in all areas of operations

We have a long-term vision of development, and therefore, we have adopted an open strategic perspective.

In order to maintain high flexibility amid the conditions of high market volatility, we are presenting a two-year operationalisation.

To achieve this goal, we will lay our focus on 3 themes

and 8 directions developed in an open strategic perspective

Strategic directions of Alior Bank

Strong position for growth

of the core digital relationship with retail customers

We will build our services on Alior Pay ecosystem,

and maintain leading position in financing purchases

Use modern payment methods…

• Versatile deferred payments
• Salary available upon request
• Comprehensive eCommerce payments (oneclick)

… tools and benefits:

• Recurring payments assistant
• Loyalty programme
• Flexible benefits management

Omni-purchase solution

New forms of financing in Consumer Finance:

• Consumer rental
• Deferred payments with CF partners
• Micro leasing

myPZU

New recommendation system:

Tool for cooperation with external partners

We will develop a new and inclusive mobile application

We are building a strong digital relationship

New ALIOR MOBILE	Real-time interaction • eTożsamość (eID) development • • Omnichannel based on mobility
SuperAPP	• For children <13 • Senior-friendly Multilingual •
Dynamic communication	• Alior Stories • Individualisation – content factory

	200
9:41
8 Kontakt Personalizacja Profil	Produ
Konto Jakże Osobiste	Pokazu
00 1234 5678 9012 3456 7890 0000 0	Pods
Dostępne środki	Wply
7 392,65 PLN ®	Wyd
Szczegóły Wyślij przelew	Dzisiaj,
Konto Mega Oszczędnościowe Do Oprocentowanie 8% w skali roku Spr Sprawdź ofertę
Nie zapomnij Pokaż wszystko (5)	b
Masz zaległe 2 rachunki 2.09.2022	0
Zbliża się termin spłaty kredytu do dzisiaj, 12.09.2022	G
Aktywuj kartę debetową × Mastercard 5102 59 ** **** 0318
	Pulpit
Ostatnie transakcje Dostosuj widok Widoczne transakcje dla: wszystkie moje produkty
Dzisiaj, 03.11.2022
5 요 요 이 :: Ci 05 Pulpit Produkty
Płatności Ofert

9:41
	Historia transakcji
	Q Szukaj kwoty lub nazwy przelewu
Produkty: 1	Waluta 8 Data Kwota Typ
	Pokazuj dostępne środki po transakcji
	Podsumowanie transakcji z danego okresu
Wplywy: Wydatki	8 450.00 PLN Pobierz 1 8 450,00 PLN zestawienie
	Dzisiaj, 28.11.2022
	Sklep Ogonek - 390,00 PLN 9:17, transakcja kartą kredytową, czeka na zaksięgowanie
D	Żłobek Mały Maluch - 2 390,00 PLN 9:17, BLIK - płatność w internecie
C	Sklep Lemur - 90,00 PLN 9:17, BLIK - płatność w internecie
G	Mydło i powidło - 560,00 PLN 9:17, przelew wychodzący
Pulpit	ાર a 17 Produkty Platności i Usługi Oferty

We will make communication individualised

and the offer personalised

Excellent knwoledge of the customer

Real-time reaction of the Bank to events generated by the customer

The right product at the right time and channel

Thousands of variants of personalised messages in active 1:1 communication

AI & advanced analytics in diagnosing individual customer needs

Personalisation of the product and message

Hyperpersonalisation of Customer Expierience

Increase in the number of active customers for whom Alior Bank is the Bank of their first choice

Strengthening the relationship with the retail customer, everyday transactionality

Increase in customer satisfaction (NPS) as a result of strong individualisation of the offer and message

Building safe digital habits

We are continuing strategic cooperation in the PZU Group in key areas

Bancassurance

Wide offer of PZU insurance for IC, BC and CF customers

Costs synergy

Negotiating the prices of external service providers within the PZU Group, significantly reducing costs

Assurbanking

Cash loan offer

CRM

Common data repository for the PZU Group

We have a solid foundation for growth

in the business customer segment

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We will increase the profitability of the relationship

and further improve the quality of the portfolio

We will invest in strengthening

the technological foundations of growth

20% Capital expenditures Growth management segment-sector-product

Customer relationship management Customer service

Data management new support system for Bankers' work

New electronic banking ecosystem of digital service tools

New credit system technological transformation

Process transformation growth of the efficiency

CUSTOMER RELATIONS GROWTH DRIVE

TECHNOLOGY

RISK MANAGEMENT

GROWTH FOUNDATIONS 80% Capital expenditures

The development of technology

will strengthen the microcompanies acquisition in digital channels and in the branch network

Maintaining a high attractiveness of the offer with a range of benefits and additional services

• 1. Multi-product credit decisions in an automatic process integrated with online service channels.
• 1. Package-based account offers with a management panel in online banking and a quick process of setting up accounts.
• 1. Discount programmes, additional services, medical and insurance packages from the PZU Group.

We will significantly improve the speed and quality of service

in the SMEs and corporations segments

• 1. Investments in credit processes increase in the share of credit decisions in the automatic process, automation of the credit process with the participation of an analyst.
• 1. Growth of the loan portfolio based on sector and segment competencies, including financing the energy transformation.
• 1. Development of customer service channels and digitisation of after-sales service.

We are developing competences, technology, and responsibility

to be a modern and effective bank

We will accelerate business transformation

by introducing new technologies

IT development pillars

We will release a New Production Model

for digital banking

Light Architecture

• Priority for Multicloud solutions
• Accelerate the use of XaaS platforms
• Fast integration of IT systems

Work od the Future

• Flexible hybrid work
• Availability of data and analysis tools
• The universality of LowCode programming

Simple Organisation

• IT structure for the customer's needs
• Using agile methodologies
• Principles of Servant Leadership

Managment Efficiency

• Simple and metered processes
• Automated monitoring
• ESG-compliant IT transformation

We will use artificial intelligence

to improve the customer experience

Impressive results of the InfoNina

InfoNina 2.0

• Multi- channel Customer consultant
• It helps making purchasing decisions for personalised products
• It ensures an increase in the level of automated calls up to 50%

Chatbot

• Available from the website, online banking and mobile application
• It guarantees 24/7 information support
• It optimises the operations of service
• and sales departments

AI Modelling

• Improves the quality of services by using AI models
• It guarantees better matching of the products offered

Cybersecurity will be a necessary condition

for innovative digital banking

Effective business and IT suport services

Cybersecurity support as an element of the life cycle of each Alior Bank's product and service, building value for internal and external customers

Secure customer and secure Bank

Actions and tools limiting threats in customer access channels as well as risk and vulnerabilities related to the security of the bank's IT systems

Safe Bank development

Actions and tools supporting the responsible and safe development of Alior Bank

We will build our development on the competences

and emplyee engagement

Our employee in 2022:

Awards

23 p.p increase in the level of involvement y/y. Alior Bank moved closer to top-notch survey results*

We build organisational effectiveness

through a personalised approach to employees, an engaging work environment, and a distinctive organisational culture

#You'reIMPORTANT #AliorisYOU #AliorisUS

• Employee potential: programmes developing individual talents, generation management
• Healthy lifestyle: mental and physical well-being of the employee and his family, outstanding medical care
• Customised benefits
• Remuneration policy: adapted to the market

Employee in the center

Personalisation Engaging work environment Distinctive culture

• Development culture: Reskilling and Alior University guaranteeing broad access to knowledge and science, transparent development prospects
• Technological transformation: digital work environment, digital learning, internal TV channel
• Agile: agile work culture

Competences supporting business goals

• Values that build AB's identity: support for work efficiency, results and commitment
• Leadership: leadership programmes
• EVP: internship and talent programmes, cooperation with universities, scholarship programmes, new Employer Branding campaigns

Employer of the first choice

We will be responsible

for the social processes around us

Care for the health of employees and customers Aid to Ukrainian citizens

• We will facilitate access to co-financed health and psychological assistance as well as well-being programmes
• We will promote preventive health care among employees and customers (full-paid day for preventive examinations Dzień na U, health packages attached to banking products)
• We will increase involvement in paid two-day employee volunteering and recreational and sports activities

• We will maintain a hybrid work model attractive to employees

• We are continuing systemic support at the Alior Bank Help Centre at 25a Towarowa Street (business centre of Warsaw)

• We will support the activities of the Alior Bank Foundation through financial education and volunteering of the Bank's employees
• We will maintain a special product offer as well as online and mobile banking available in Ukrainian
• We will provide products financing the reconstruction of post-war Ukraine by Polish companies

We will respond to environmental and climate challenges

Support in the transformation of our customers

• We will implement the ESG assessment of corporate customers' portfolios
• We will expand our offer with sustainable banking products
• We will provide products enabling the use of EU funds and other public funds

Reduction of the Bank's negative impact on the environment

• We will create our own zero-emission energy sources for the bank – a Data Centre photovoltaic installation in Krakow
• We will reduce the use of energy, paper and plastic
• We will continue to measure emissions in scopes 1 and 2 and start the calculation in scope 3
• We will engage employees in creating an environmentally friendly bank

We will apply even higher management standards

We will bring our score in the ESG ratings to a higher level

We will maintain high scores for our diversity policy

We will implement ESG training for all employees

We will expand ESG competences in key areas in the bank

We will guarantee full regulatory compliance in the field of sustainable development

We will make public ESG policies and documents, including sustainability reports

We will create a human rights policy and a regulation that includes ESG issues in the purchasing process

We will strengthen internal ESG risk management and provide customer scoring takes into account ESG factors

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We will strengthen the capital base and reduce credit risk

Capitals	09/2022	12/2024	We are continuing to improve the capital base as a result of the accumulation
Tier 1	12,4%	>13,5%	in the area of capital
TCR	13,7%	>15,0%
Credit risk			Despite the economic downturn, we manage to maintain the quality
CoR	1,6%*	<1,6%	of new sales at the market level, leading to further long-term quality
NPL	11%	<10%	improvement of the portfolio

We are continuing to improve the capital base as a result of the accumulation of profits and implementing new solutions in the area of capital

we manage to maintain the quality of new sales at the market level, leading to further long-term quality improvement of the portfolio

We have defined risk management transformation cornerstones

Increased capital stability

• Growth of the capital base through the accumulation of profits.
• Start of the IRB project
• Flexible RWA optimisation initiatives.

Advanced analytics

• Implementation of Real-Time feature
• Scaling the use of advanced analytics to other areas of the bank.
• Democratisation of advanced analytics and analytical quality centre for the entire organisation
• Development of an open-source technology platform and cloud-ready services

Transformation of credit processes

• We have already brought processes for cash loans, instalment loans, and microentrepreneurs to full automation
• We will implement at least 50% of decisions for business customers in an automatic process
• The process for mortgage loans will be completely automatic in at least 30%

We have established measures of our success

key performance indicators by the end of 2024

* ROE was calculated assuming an increase in equity over the period of the strategy by approx. 50%.

** Ability to pay dividends understood as obtaining by the Bank a sufficiently high surplus of own funds over regulatory requirements, which, after

meeting the formal criteria, will allow the Management Board to recommend a dividend payment or buyback of own shares.

Disclaimer

This presentation ("Presentation") has been prepared by Alior Bank S.A. ("Bank") and it does not constitute an offer or solicitation of an offer to purchase or acquire securities or other financial instruments issued by the Bank and it does not constitute advice or a recommendation with regard to those securities or other financial instruments issued by the Bank. Neither any part of the Presentation nor the fact of its distribution shall under any circumstances form the basis for or be referred to in case of any agreement, obligation or decision to invest in securities.

This Presentation may include forward-looking statements. These forward-looking statements are based on the current knowledge and opinions of the Management Board and involve a number of known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Bank to be materially different from the information contained herein.

The Bank neither does nor will undertake any obligation to update or disclose to the public any revisions to any forward-looking statements contained herein.

This Presentation is not a forecast or estimation of future results. Accordingly, possible changes in the Bank's strategy or intentions, caused by unforeseen circumstances, that affect the Bank's strategy or intentions, shall not be subject to disclosure under the procedure stipulated for changes in a forecasts or estimation of future results. Neither the Bank nor any of its representatives, subsidiaries or parent entities shall be held accountable for any damage resulting from the use of the Presentation or a part thereof, or any information contained herein or connected with the Presentation on some other basis.

Certain information contained in this Presentation may be derived from publicly available sources which the Bank believes are reliable, but the Bank does not make any representation as to its accuracy or completeness. The information contained in this Presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant, any fuller disclosure of information materials published by the Bank. The information contained in this Presentation has not been independently verified and is, in any case, subject to changes and modifications.

The Presentation may include financial information or indicators that were not the subject of an audit, review or any other evaluation by an external auditor.

This presentation is not intended for disclosure or distribution to and within countries where such publication or dissemination may be prohibited under applicable law.