MONETA Money Bank : PPF Initiated an agreement with MONETA Money Bank to terminate the acquisition process of Air Bank

PPF Initiated an Agreement with MONETA Money Bank to Terminate the Acquisition Process of Air Bank

Prague, 30 May 2022

Today, Monday, May 30th, PPF and MONETA have signed an agreement to terminate the acquisition process of Air Bank. The agreement was initiated by PPF as a consequence of a change in Group's senior management, subsequent transaction review and negative development of the economic environment, including the recent change of CNB's capital requirements for all banking entities in the Czech Republic.

The termination agreement was signed in accordance with the Framework Agreement concluded by both parties in May 2021. This was the foundation for previous approval of the acquisition of Air Bank and its financing and was approved by MONETA shareholders in December 2021. The Framework Agreement set the acquisition price for Air Bank Group at CZK 25.9 billion. MONETA planned to finance the acquisition through an emission of new shares and usage of bank's excess capital. The planned two-round subscription of new shares had been designed to raise approximately CZK 21 billion from existing shareholders, thus enabling MONETA to fund a significant portion of the acquisition value. Therefore, the termination effectively discontinues this process of public offer and subscription of new shares.

PPF initiated the agreement negotiations as a result of negative development of the macroeconomic environment and significant weakening of capital markets in the past months. These changes, in PPF's view, materially increase the risk associated with the transaction. Moreover, these risks reduce potential for value creation through merger of the two banks. Additionally, the rapid growth of interest rates in the Czech Republic further increases the cost of financing related to potential assumption of higher stake in MONETA to the point where it becomes unbearable for PPF.

The main reason for PPF's withdrawal from the transaction is CNB's recent decision to increase countercyclical buffer from 0.5 per cent to 2.5 per cent for all banks operating in the Czech Republic. This new requirement, including the recently communicated additional capital requirement for the prospective combined bank, would significantly reduce prospective dividend capacity of the combined bank against originally assumed level, namely in 2022 and 2023. As a result, PPF was unwilling to finish the transaction in order to minimize the risks associated with this future development.

MONETA's management agreed to the proposed termination as it believes it will secure reimbursement of incurred expenses to date related to the acquisition while also removing any uncertainties concerning potential takeover. Within this context, PPF undertook to refrain from increasing its stake at MONETA and

V případě zájmu o další informace kontaktujte prosím:

Zuzana Filipová, mob.: [phone], [e-mail]

nebo Servis pro média na [e-mail] a www.moneta.cz

MONETA Money Bank, a.s., která je řídící osobou koncernu MONETA, je přední nezávislou českou bankou poskytující služby svým zákazníkům prostřednictvím celostátní pobočkové sítě. Od svého vstupu na Pražskou burzu cenných papírů v roce 2016 má banka silnou pozici v retailovém a zemědělském sektoru a svoje služby zaměřuje na malé a střední podniky. Mimo to poskytuje banka další produkty jako pojištění nebo investiční fondy. Klienti MONETA tvoří přes 13 % populace České republiky a využívají její multikanálovou strategii, která zahrnuje 154 poboček a 560 bankomatů, digitální bankovní aplikaci, která je špičkou na trhu, a dále vlastní call centrum, smluvní prodejce automobilů, stavební spořitelnu a hypoteční banku, finanční zprostředkovatele a leasingové partnery.

continue holding its current stake for at least 12 months. However, PPF retains the right and ability to potentially sell its current 29.94 percent stake in MONETA to strategic investor defined as a qualified financial institution. MONETA's management continues to believe in strategic merit of the acquisition, however, it is also convinced that any effort to complete the transaction has become meaningless and considers the process to be definitively terminated.

MONETA's management confirms its conviction regarding its ability to deliver strategic objectives resulting from the existing standalone strategy. These objectives were communicated and published on 4 February 2022 and further commented on 28 April upon publishing of the Q1 financial results. One of the most important strategic objectives is the ability to deliver cumulative net profit of CZK 23.7 billion during the period of 2022 until 2026.

This guidance remains unchanged and fully incorporates assumed higher capital requirements for the upcoming period. "I regret that the plan we have worked so hard to deliver ultimately won't be executed. We will, therefore, remain focused on execution of our standalone strategy and the objectives based on this strategy to deliver solid profitability to our shareholders according to the valid dividend policy. I believe we will achieve it in line with our previous communication," Tomáš Spurný, Chairman of the Management Board and CEO of MONETA Money Bank commented on the situation.

V případě zájmu o další informace kontaktujte prosím:

Zuzana Filipová, mob.: [phone], [e-mail]

nebo Servis pro média na [e-mail] a www.moneta.cz

MONETA Money Bank, a.s., která je řídící osobou koncernu MONETA, je přední nezávislou českou bankou poskytující služby svým zákazníkům prostřednictvím celostátní pobočkové sítě. Od svého vstupu na Pražskou burzu cenných papírů v roce 2016 má banka silnou pozici v retailovém a zemědělském sektoru a svoje služby zaměřuje na malé a střední podniky. Mimo to poskytuje banka další produkty jako pojištění nebo investiční fondy. Klienti MONETA tvoří přes 13 % populace České republiky a využívají její multikanálovou strategii, která zahrnuje 154 poboček a 560 bankomatů, digitální bankovní aplikaci, která je špičkou na trhu, a dále vlastní call centrum, smluvní prodejce automobilů, stavební spořitelnu a hypoteční banku, finanční zprostředkovatele a leasingové partnery.