Press conference on 9th December 2014

1. Press conference on 9th
December 2014

2. 2
The much referred to CPC report – what was really
their conclusions?

3. 3
The much referred to CPC report – what was really
their conclusions?
CPCs opinion is that there may be concerns regarding BAMCs
- selection and use of external vendors
- hiring of staff
- traceability of decision-making
Primarily concerned regarding the risk of a conflict of interest when engaging
vendors and hiring of staff
The main recommendation is to create a two tier board system (!)

4. 4
CPC Report: Factual mistakes, omission of key facts and
negatively biased opinions, examples:
CPC DUTB
The commission identified signed contracts with external
vendors as one of the key corruption risks.
The procedures involved in signing contracts with selected
vendors had not been prescribed until recently, and the
commission is not aware of any criteria or requirements
applied in the selection process.
The report finds no corruptive actions taken nor is giving any
recommendation to BAMC how to improve its operations to
minimize the risks.
In legal relations with external vendors, BAMC conducts itself
in accordance with the principles of cost-effective and
effective use of public funding and exercises diligence in
ensuring proper enactment of contracts.
19 March till 31 August 2014, external consultants had been
paid approximately 12 million EUR.
The cost of external consultants were 5,2 million.
Even with 80 employees on-board BAMC is still paying a lot
of money for external vendors.
BAMC has terminated the majority of contracts with external
vendors once the organization was established and the first
transfers finalized.
It is difficult to understand that after a year the system of
operations of BAMC had still not been fully established.
The BAMC’s mandate changed several times in 2013, which
demanded extensive support and adaptability.

5. 5
What caused the consultancy spent in 2013?
Main causes Who How much (low
estimation in EUR)
April 8th Change of timeline forcing BAMC to add external
resources to plan and help execute transactions in
spring instead of end of year
MoF
BoS
EC
550 000
May 30th
Change of the role of BAMC abandoning of work to
prepare bank ownership function and new financing
required
MoF 600 000
June 18th DG comp stops transactions and demand to wait
system wide AQR's Postponement until sept
EC 200 000
Summer & Autumn of
2013
BAMC kept out of AQR work for the assets to be
acquired
Banks
BoS
500 000
December 6th Change of transaction concept BoS
MoF
Banks
1 250 000

6. 6
Results – What have RS got for its investment so far?
• Investment in BAMC: 203 Million
• Investment in NLB, NKBM, Abanka (1551+870+348) 2769 Million
• BAMC has an organisation and a plan for how to return all the investment in
BAMC with 8% interest - after covering all its salaries, external vendors and other
cost
• Effective organisation of just under 80 people that has acquired assets that once
were worth 4.5Bn, and that at the time of transaction was worth approx 1Bn. We
paid 1.5 Bn – the difference is actually an additional contribution to the banks
balance sheet.
• Action plans for each and every case (400 enforcement and 100 restructuring
cases) with decisive actions taken across our portfolio

7. 7
Restructuring case progress, examples
Merkur (109M): Completed process of repeated compulsory settlement (RCS) - two new spin-off
companies were established (Merkur Trade and Merkur Real Estate) and operational as of 13th November.
Avtotehna (75M): Existing owners not cooperative in restructuring, compulsory settlement started and
restructuring plan developed. First time creditors was enabled by court to appoint new mgmt board.
Adria Airways (29M + equity): Sale-and-leaseback of two aircraft approved by EGM yesterday. Providing
funds to avoid bankruptcy (4M matching mgmt improvement initiatives).
Športni center Pohorje (46M): Restructuring through a controlled and orderly bankruptcy. Hotel business
separated and now leased to Therme Maribor.
Zvon 1, Zvon 2 (214M): Shares of IALG successfully sold Sept 10th at 50% premium compared to closing
price Dec 31st 2013. BAMC received more than EUR 4m from sale of pledged shares
AHA Group (Aha Emmi, Aha Plastik, Aha Secaplast) (14M): Creditors compulsory settlement for AHA Emmi
is confirmed by the court but the ex owners appealed (temporary). AHA Plastik compulsory settlement,
creditors voted on D/E end of October.

8. 8
Restructuring case progress, examples
T - 2 d.o.o (131M)
Legal dispute against the debtor, un-coorpative managment team, BAMC sees bankcruptcy most valuable
options to pursue to enable faster more appropriate repayment of the loans which so far were not being
paid
Cimos (90M)
DUTB filed for compulsory settlement, which we believe will be confirmed and will insure the company
successful restructuring of its debt and its business. Successfully secured liquidity required.
ACH (105M)
Master restructuring agreement signed under the coordination of DUTB by which we can now run
controlled divesting process in the company, rather then selling the assets in bankruptcy which would
provide less money back to creditors.
CGP, d.d (35M) . - exposure 34.740.026.
Agreement for reprogramning loans / prolonging the loans so that the company will be able to service its
debt and also perform its business.

9. 9
Restructuring case progress, examples
GORIČANE, d.d. (34M)
First finished preventive restructuring case in Slovenia. Agreement with all banks on reprograming the
loans, succeeded to help the company to obtain guarantees for its business .
MLM d.d. (34M)
Long negotiations resulted in successful signed MRA - enables the company to continue production,
ensures the company required capital. A well organised selling process of the company now possible.
ALPINA, d.o.o (27M)
Supporting a compulsory settlement which will result in change of ownership, decrease of the company’s
debt and thus enable for one of the most known companies in Slovenia to survive and find a proper
strategic partner
PINUS TKI d.d (25M)
Hard work on selling process for the last months coming to an end., successful sale will prevent certain
bankrupcty and end of operations.
Sistemska tehnika (12M)
Approved super seniority status to Abanka and thus enabled company to obtain needed guaranties,
necessary to preserve the business

10. 10
Results – What have RS got for its investment so far?
• Our exit operations have started, generated Euro 94M (close to 10%)
- website for Real Estate attracting interest
- claims for 80-150M in live sales discussions
• Contributed 62M to the State or State owned organisations
• In addition approx 80 cases where process were already initiated in the banks we
have suspicions on 12 cases where we currently are building the documentation
to given to the NPU
• We are further than NAMA was after 18 months and more cost effective

11. 11
NAMA comparison – 18 months of operations
Organisation:
DUTB NAMA
75->100 75->100
Transactions:
Two tranches, 29 cases, 27 Bn,
3518 loans, only property
related loans, enforcements
Two banks, 424 cases, 4 Bn,
3500 loans, corporate loans
incl 100 restucturing cases
Costs: 65.5M (total cost)
12,5M consultants cost
15.5 M (total cost)
7.5M „consultants“ costs
Exits: 60 M -

12. 12
Thank you!