• BPH200 was as of 3Q2006 the 15th bank in Poland in terms of assets and controlled ~1.4% of the banking market
• The balance sheet structure of BPH200 is preternatural with very high share of equity. Client loans portfolio is bigger than deposits
• The inherited 200 branches network is inadequate in several regions in terms of density vs. attractiveness and may result in branch closures in the worst case
• The main value drivers of BPH200 are: Strong brand, existing customer base and countrywide presence
• One of most valuable assets of BPH200 will be the BPH TFI – fund management company
• Current BPH/Pekao share price differential indicates a theoretical value of BPH200 at the level of PLN -5.4 billion
• The final price of PLN 5.4 billion would mean an extremely high valuation as is difficult to justify taking into consideration that the future profitability of the bank and final customer base are uncertain