VIENNA ECONOMIC TALKS: MEET TURKEY in VIENNA

STEIERMÄRKISCHE SPARKASSE: our perspective on the Western Balkans and the role of Turkish investors in the region

Sava Dalbokov – Member of the Management Board

Vienna – June 19, 2012

15. May 1825 Founded as a Savings Bank Association

1965 - 2010 Mergers with 19 regional savings banks in Styria

1997-2008 First international bank acquisition in Croatia, investments in BiH, Serbia, Macedonia and Slovenia

Today Largest regional bank in the South of Austria & growing player in South-East Europe

� Total Assets of some EUR 14,3 bn.� 2,3 million clients & 6.000 employees � Community owned, 25% held by

Erste Bank

Our Story in a Nutshell: over 185 Years of Stability & Regional Commitment

Deposits: ~5,5 bn. €

Loans: ~8,4 bn. €

Branches: ~300

Staff: ~4.200

As of: 31. December 2011

Sparkassengruppe

Extended home market of Steiermärkische Sparkasse

Clients: + 4% (growth in 2011)

Assets: + 15% (growth in 2011)

Steiermärkische is a key player in one of the leading banking networks in SEE…

Assets: ~10,8 bn. €

Clients: ~1,8 mn.

SerbiaSlovenia

Croatia BosniaMacedonia

Montenegro

…and is uniquely positioned to provide best support for clients in the region

FDIs are Key to Growth in SEE � Till 2008-09, FDIs were coming primarily from

Western Europe, with Austria playing a key role� Since 2008, the relative significance of Western

European FDIs reduced due to their low growth

� Western Europe is the region’s main trade partner

� Emergence of new investors: Turkey plays a prominent role, especially in BiH and Macedonia

- Investments in Real Estate, Financial Sector, Infrastructure & Roads, Agriculture, Health & Education

Turkish Investments in BiH & MK

� Good legal framework for coooperation (e.g. double taxation, investment & free trade treaties)

� Turkey is 8th largest investor in BiH with some EUR 135 mil. FDIs (~3% share), trend growing

- Food & Beverages, Financial Services, Transport & Infrastructue, also in Education

� Turkey is a leading investor in MK: EUR 75 mil. FDIs in 2011 (cumulative some EUR 225 mil.), based on current projects cumulative investments can reach EUR 400 mil. in 2012-2013

- Real estate & construction, infrastructure, healthcare, financial services, agriculture

Conclusion: good to have a diversified investment base for SEE� Turkish investments support the economies in the

Western Balkans in “tough times”� In the current situation, such investments are

beneficial and needed in the region

� Turkish FDIs should lead to more balance in the region’s terms of trade with Turkey

� Turkish companies have the potential and strength to build up market positions in SEE

� In view of the region’s needs and current environment there are ample cooperation opportunities (not only competition)

Thank You Very Much!

� Sava DalbokovMember of the Managing Board

Steiermärkische Bank und Sparkassen AGSparkassenplatz 4, 8010 Graz, AUSTRIAE-Mail: sava.dalbokov@steiermaerkische.atTelephone: +43 5 0100 35070