TMR Request for Approval – Recapitalization Tatrabanka, 2013/06/16 CONFIDENTIAL  Zmenit template  Datum(?)

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1 TMR Request for Approval – Recapitalization Tatrabanka, 2013/06/16 CONFIDENTIAL  Zmenit template  Datum(?)

2 Table of contents 1.Executive summary 2.Transaction rationale 3.Financial performance of TMR 4.Recapitalization 5.Process & Timing 6.Appendices 2

3 Key parameters of proposed transaction 3 1 EXECUTIVE SUMMARY  TBD  Roman  TBD / 1 page summary  Catchy action title

4 There are three principal reasons why we contemplate recapitalization of TMR now DESCRIPTION MATCH CAPITAL STRUCTURE WITH ASSET BASE AND COPMANY‘S RISK PROFILE  TMR has already proved its very stable and consistent track record in meeting budget targets and delivering EBITDA growth  Intensive growth/expansion investment phase is almost over and TMR is on track to its „steady state EBITDA“, which it should reach within two years  TMR‘s very strong asset base is currently being funded mostly from equity resources which is sub optimal  As an infrastructure/real estate company TMR should accommodate long-term debt financing at the level of 60-65% of value of its assets 4 2 TRANSACTION RATIONALE CREATE OPTIMAL TAX STRUCTURE  For some shareholders dividend yield is subject to tax  As net income profitable company TMR and its shareholders will benefit from additional tax shield gained on newly raised debt USE FAVORABLE MARKET CONDITIONS & DIVERSIFY SOURCES OF CAPITAL  With interest rates on its all time low TMR can benefit from fixed coupon type securities if issued now  Bonds are currently very popular investment mean which allow for higher leverage comparing to standard bank facilities  TMR can raise part of its debt from general public without relying on limited number of selected banks

5 TMR has historical track record of consistent EBITDA growth 5 3 FINANCIAL PERFORMANCE OF TMR  2013 Pro-forma EBITDA smaller than budget due to recap transaction costs - Estimated at EUR 2.5MM - Cash flow-wise transaction costs will be paid from the bond issue  Presented financials do not include following upside potential ‒Management fee from Skiareál Špindlerův Mlýn ~EUR 200k annually ‒Management fee from Aquapark Brno / Nové Mlýny ~EUR 200k annually ‒Tax loss carried forward – currently amounting to EUR 6.5MM (merger with TMR services) ‒Tax D&A higher than IFRS D&A by ~EUR 4MM annually until 2017 MANAGEMENT CASE

6 New investments will further boost EBITDA growth in key segments 6  Lifts and Aquapark are key business lines from overall EBITDA contribution standpoint  Small segments Gastro and Tatry Motion are rapidly growing and also provide above average EBITDA Margins MANAGEMENT CASE 3 FINANCIAL PERFORMANCE OF TMR

7 Stávající struktura financování na úrovni TMR (1/2) – hlavní parametry bankovních úvěrů 7 4 RECAPITALIZATION VĚŘITEL OBJEM 1 SAZBAMATURITAZAJIŠTĚNÍ STÁVAJÍCÍ FINANCOVÁNÍ V TMR (VÍCE FACILIT) STÁVAJÍCÍ FINANCOVÁNÍ MIMO TMR 3 (VÍCE FACILIT) NOVÝ ÚVĚR NA CAPEX 2013 TatrabankaEUR 15.2MMEURIBOR + 1.5% – 2.5%  2017 - 2019  Lanovky  Obchody  Restaurace  Hotely 2 Tatrabanka Slovenská sporiteľňa EUR 3.1MMEURIBOR + 1.8% – 3.6%  2014 Webis  2014 1. Tatranska  2015 Interhouse  Lanovky  GHS hotel TatrabankaEUR 30.0MMEURIBOR + 3%  2018  50% baloon  5 letá prolongace při splnění kovenantů  Nově pořízená aktiva  Aquapark 1)Objem k 2013/10/31 s výjimkou nového úvěru – očekávané čerpání Květen – Červen 2013 2)V rámci čerpání nového financování je plánováno uvolnění GH Jasná (book value EUR 20MM) výměnou za Aquapark 3)Především Webis a 1. Tatranská CELKEM EUR 48.3MM AT + JH TBD / Take-out

8 Proposed structure and key terms of the issue 8 VĚŘITEL OBJEM SAZBAMATURITAZAJIŠTĚNÍ ZAJIŠTĚNÉ 1 VEŘEJNĚ KÓTOVANÉ DLUHOPISY PODŘÍZENÉ NEZAJIŠTĚNÉ VEŘEJNĚ KÓTOVANÉ DLUHOPISY TBD [Primárně externí] EUR 70MM  4.5%  Cash úroky  2019  Bullet  Vše co zbyde volné po Tatrabance  Primárně hotely – book value EUR 90MM TBD [Primárně JTB, PABK] EUR 110MM  6.0%  Cash úroky  2019  Bullet  Žádné CELKEM EUR 180MM DODATEČNÉHO DLUHOVÉHO FINANCOVÁNÍ 1)Otázka podřízenosti vůči Tatrabnace TBD -Translate & update according to term sheets -Term sheets into appendix (?) RF 4 RECAPITALIZATION

9 We believe that we successfully mitigated all major risks perceived by Tatrabanka Roman to review 4 RECAPITALIZATION REFINANCING RISK  Majority of facilities provided by TB have shorter tenor comparing to senior bond issue and significantly shorter tenor comparing to junior issue  JTFG will provide guarantee to subscribe new issue should market demand does not suffice to full refinancing  No „automatic extension“ of balloon portion of current EUR 30MM facility required in 2017 FINANCIAL PERFORMANCE WILL NOT BE MET  TBD LACK OF EQUITY  TBD 9 RISKMITIGANT

10 Proposed changes in existing loan documentation -RF -Otázka je, zda pocesne budeme dotadtkovat stávající smlouvy nebo uplně nahradíme novými 4 RECAPITALIZATION 10  TBD

11 Sources & Uses of proceeds raised from bonds 11 4 RECAPITALIZATION

12 Both projected 2013 – 2020 Cash Flow … 12 MANAGEMENT CASE 4 RECAPITALIZATION

13 … and financial covenants show that TMR should be albe to service the entire EUR 180MM issue 13 MANAGEMENT CASE 4 RECAPITALIZATION

14 Indicative transaction timing 14 5 PROCESS RF -Nekde by imho mělo zaznit, ze to budeme delat is bez TB – mozna jako nejaky decision point (?)  TBD

15 6. APPENDICES

16 Term sheet (1/2) – EUR 70MM Senior bond issue 16 4 RECAPITALIZATION

17 Term sheet (2/2) – EUR 110MM Unsecured bond issue 17 4 RECAPITALIZATION