welcome to the annual general meeting of raiffeisen...

Welcome to the Annual General Meetingof Raiffeisen International Bank-Holding AG

Report of the Managing Board

Dr. Herbert Stepic, CEO

3Annual General Meeting, 7. June 2006

An Experienced Management Team (I)

Herbert Stepic, CEOHuman ResourcesStrategy & Acquisitions CommunicationsInternal AuditLegal & Compliance

Martin Grüll, CFOInvestor RelationsControlling & AccountingTreasury & ALMRisk Management

Heinz Wiedner, COOProcess- & Productivity ManagementProject OfficeGroup ITShared Service Centres & Country Coordination


An Experienced Management Team (II)

Peter Lennkh, Corporate & Regions

Corporate RelationshipsNetwork Bank ServicesBank CooperationProduct DevelopmentLeasingReal Estate Business

Rainer Franz, Board Member

Training & Executive Development(CEO Tatra banka)

Aris Bogdaneris, RetailConsumer BankingSME BusinessProduct ManagementCards Insurances


Highlights

Record IPO:

– Largest IPO in Austria

– Order book 22 times over-subscribed

– 40% of issue volume to private investors

Share price increase of 70.9% in 2005 und 122.2% one year after IPO

Record profit growth

Acquisition of 93.5% of Bank Aval, Ukraine

Acquisition von 100% of Impexbank, Russia (January 2006)


Unique network of banks and leasing companies in 16 markets

Strong and well-known brand "Raiffeisen“

40% growth of balance-sheet total in 10 years

10 million customers

Pre-tax return on equity in 2005: 21.8%

Cost efficiency: cost/income ratio of 61.6% at year-end 2005

Clear focus on middle market and retail customers

Regional focus on SEE and CIS

RI – The Leading Pure Play CEE Banking Group

Market position

Growth

Profitability

Strategy


Focus on Attractive CEE Markets

Central Europe“CE”

Commonwealth of IndependentStates “CIS”

SoutheasternEurope “SEE”

RI well positioned in CEE region1)

19 %

Customers > 10.0 mn

Outlets > 2,500

Staff > 44,000

Total Assets Split by Regions2)

CIS23%

CE43%

SEE34%

1) Figures at 31/03/2006, excl. Impexbank2) Figures at 31/12/2005


7.6%

12.9%

19%

Strong and Sustainable Growth Potential in CEE

∅ Growth Rate of Nominal GDP2004 − 2007 p.a.

∅ EU-12: 4.04% p. a. ∅ CEE: 11.9% p. a.

CIS

SEE

CE


Successful“green field” strategy …

…complemented bytargeted and profitable

acquisitions.

Hungary

1987 1991 1993 1994 1997 1998 2000 2001 2002 2003 2004

Poland Bulgaria

Slovenia Belarus

Czech Republic Russia

Bosnia andHerzegovina Kosovo

Croatia

Ukraine Serbia and Montenegro

Slovakia

Romania

Romania

Albania

2005

Ukraine

2006

Russia

Dynamic and Continuous Network Expansion


Kyiv

Dnipropetrovsk

Simferopil

Odessa

Chernivtsy

VinnitsaCherkassy

Zhitomyr

RivneLutsk

Lviv

Uzhgorod

Ternopil

Ivano -Frankivsk

Kherson

Mikolaev

Poltava

Kharkiv

Lugansk

Chernigiv Sumy

Kirovograd

Donetsk

Zaporizhzhya

Khmelnitsky

40

80

41

42

37

3739

4038

69

64

88

42

38

40

55

43

37

53 36

72

37

132

104

38

93.5% of shares in Bank Aval

Since fourth quarter consolidated in the Group financial results

Fast growing banking market (+ 58%)

Branch network covers entire country

3.4 mn customers

1,342 Outlets

Acquisition of Bank Aval (Ukraine)


Moscow

Saint Petersburg-

Moscow

Saint Petersburg-

Kaliningrad

Smolensk

Briansk

Anapa

Irkutsk

Blagoveshchensk

Khabarovsk

Vladivostok

Petropavlovsk-Kamchatskiy

Magadan

KrasnoyarskTomsk

Novosibirsk

Barnaul

Omsk

Surgut

Cheliabinsk

Ekaterinburg

Essentuki

Stavropol

Rostov-on-the-Don-

Taganrog

Perm

Nizhni Novgorod

Kirov

Yaroslav

Saransk

Zlatoust

Samara

Saratov

Volgograd

Krasnodar

Belgorod

Stary Oskol

Zheleznogorsk

Orel

Lipetsk

Voronezh

Kaluga

TulaIvanovo

IzhevskKazan

Cherepovets

Yakutsk

Acquisition of Impexbank (Russia)

100% of shares in Impexbank

Clear focus on retail business (private individuals and SMEs)

190 branches throughout the country

RI largest foreign banking group

Fourth-largest branch network in Russia

Fast growing banking sector (+36.6%)


Outlook

We expect a strong medium-term growth of earnings in the CIS region, especially in the Ukraine and Russia. However, restructuring measures (Bank Aval and Impexbank) will be a short-term burden on the result.

We continue to judge the potential for business in Southeastern Europe (SEE) optimistically, but somewhat more cautiously on account of restrictions on credit growth prescribed by supervisory authorities.

In Central Europe (CE) we are increasingly focusing on the fast growing segment of asset management products, in addition to the traditional business.

We expect a minimum 20% growth p.a. for the balance-sheet total up to 2008. We see the strongest growth in the CIS countries, partly because of the acquisitionsmade there.

For 2006 we expect an increase of more than 25% in our consolidated profit (2005: € 382 mn), excluding Impexbank results and the sale of Raiffeisenbank Ukraine.

Report of the Managing Board

Mag. Martin Grüll, CFO


40,695

28,907

20,063

14,381

2002 2003 2004 2005

Financial Highlights 2005 (I)

Balance-Sheet Total in € mn

40.8

%

19.0

26.3

35.1

5.6

13.6

2.6

1.1

0.8

2002 2003 2004 2005

Organic growth Acquisitions

Overview of Balance-Sheet Total in € bn

14.4

20.1

28.9

40.7


Sustainable Growth of Core Business

24.7

16.2

11.7

8.2

24.9

12.1

9.4

18.2

2002 2003 2004 2005

Loans to customers in € bn Deposits from customers in € bn

∅ Growth of loan volume: 44.2%

∅ Growth of deposits: 38.5%


Financial Highlights 2005 (II)

Consolidated Profit in € mill.

209.4178.7

103.5

382.3

2002 2003 2004 2005

82.6

%

Profit increased by 82.6%

Profit per share increased by € 0.86 to € 2.79


Solid Growth

Income Statement in € million

2004 2005 Growth in %

Net interest income 803.5 1,202.1 49.6 Provisioning for loan losses -137.6 -167.3 21.6 Net commission income 299.7 406.8 35.8 Trading profit / (loss) 220.1 300.8 36.6 General administrative expenses -823.3 -1,162.5 41.2 Profit before tax 340.8 568.6 66.8 Profit after tax (after minority interests)

209.4 382.3 82,6


CIS and SEE Provide Increasing Profit Contributions

Regional Segment Break-Down Profit before Tax 2004

Regional Segment Break-Down Profit before Tax 2005*

Central Europe (CE) 47%

Common-wealth of Independent States (CIS)23%

Southeastern Europe (SEE)

30%

Central Europe (CE) 40%

Common-wealth ofIndependent States (CIS)27%

Southeastern Europe

(SEE) 33%

____________________* incl. Bank Aval, excl. Impexbank


Contribution of Retail Sector Continues to Increase

Business SegmentsProfit before Tax 2004

Business Segments Profit before Tax 2005

Retail Customers13%Treasury,

Participations and Others21%

Corporate Customers66%

Retail Customers21%Treasury,

Participationsand Others20%

Corporate Customers59%


21.8%22.2%

24.1%

19.9%

2002 2003 2004 2005

Financial Highlights 2005 (III)

Cost/Income Ratio

70.3%

64.7% 63.5%61.6%

2002 2003 2004 2005

Return on Equity before Tax


Highlights of First Quarter 2006

Best Result for a Quarter in the History of Raiffeisen International

Consolidated profit for first quarter up by 34% to € 124 mn (1-3/2005: € 93 mn)

Loans to customers up by 46% compared to Q1 2005

CIS now contributes 30% to pre-tax profit for first quarter (1-3/2005: 23%)

Pre-tax return on equity 23.7% (1-3/2005: 24.7%)

Cost/Income Ratio 58.4% (1-3/2005: 59.9%)

Customer numbers exceed 10-million mark and currently grow by 100,000 per month.


Changes in Shareholder Structure

Shareholder Structure after IPO Shareholder Structure at Year-End 2005

Private investors10%

Institutional investors

20%

RZB70%

Private investors8%

Institutionalinvestors

22%

RZB70%


Share Price Development

Between IPO and year-end 2005: 70.9% growth in value

Between IPO and 6 June 2006: 102.8% growth in value

30

35

40

45

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80

Apr May Jun Jul Aug Sep Oct Nov Dec 05 Jan Feb Mar Apr May Jun

Raiffeisen International ATX (relative to RI) DJ EURO STOXX Banks (relative to RI)

Inde

x ba

se=

€32

.50

(issu

epr

ice)

€

Inde

x ba

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€32

.50

(issu

epr

ice)

30

35

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Apr May Jun Jul Aug Sep Oct Nov Dec 05 Jan Feb Mar Apr May Jun

Raiffeisen International ATX (relative to RI) DJ EURO STOXX Banks (relative to RI)

Inde

x ba

se=

€32

.50

(issu

epr

ice)

€

Inde

x ba

se=

€32

.50

(issu

epr

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Thank you for your attention!

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