CELEBRATE

18 YEARS

CELEBRATE

CETELEM CELEBRATES 18 YEARS This October, Cetelem is celebrating 18 years since its inception. It has been a time during which the company underwent many changes and came up with many innovations associated with not just technological development but also with the needs and wishes of its clients. It is largely thanks to them that Cetelem can celebrate such an anniversary. We thank them all for their confidence in us. We really appreciate it and take it as a commitment for the future, as we continue listening to their wishes and providing top quality products and services to them. Our thanks also go to our trade partners and employees without whom we could not fulfil the wishes of our customers.

STABLE

PROFESSIONAL

EXPERIENCED

RESPONSIBLE

ACTIVE

TRANSPARENT

COMPETITIVE

INNOVATIVE

AWARD-WINNING

CREATIVE

CONSCIOUS

HELPFUL

THE WAY WE ARE

STABLE

WHO WE ARE CETELEM ČR, a.s., (“Cetelem”) is a strong and stable company with a premier position in the Czech finance market, and which celebrates eighteen years of successful activity in the Czech consumer credit market this year. Also this year the company has been successful in consolidating its position as the leading non-banking provider of credit products and services. Throughout its history, the company has been an innovator and pioneer in many areas, in particular with the Internet. Cetelem was founded in October 1996 and launched its business activities in June the following year. Ever since the beginning, the company’s guiding principles have included the rules of responsible lending. Cetelem holds a payment institution licence issued by the Czech National Bank. The licence confirms that Cetelem meets the strict regulatory requirements similar to those applying to banks as well as confirming that it is a credible and stable company in the Czech finance market. Cetelem offers a highly competitive product portfolio based on a responsible and individualised approach to its clients. The company’s products and services can be applied for in person at branches, by telephone and on-line. In addition to conventional consumer credit provided at points of sale for goods and services, Cetelem also offers personal loans, credit cards, motor vehicle financing products, mortgages and various types of insurance.

PROFESSIONAL

WHERE WE BELONG Cetelem is a subsidiary of BNP Paribas Personal Finance, a French bank that has been offering financial services since 1953 (under the name Cetelem until 2008) and last year celebrated 60 years since its formation. BNP Paribas Personal Finance operates in 25 countries across four continents of the world and employs more than 16,000 people. BNP Paribas Personal Finance is a part of the BNP Paribas Group, one of the world’s leading banks. The group operates in 75 countries worldwide and employs almost 185,000 people, including more than 140,000 in Europe. The cooperation between BNP Paribas subsidiaries is based on the sharing of know-how in the development and implementation of new products as well as in improving internal processes and risk management.

EXPERIENCED

BNP PARIBAS PERSONAL FINANCE

Algeria Argentina Belgium Brazil Bulgaria China the Czech Republic Egypt France Germany Hungary Italy Luxembourg

Mexico Morocco Poland Portugal Romania Russia Serbia Slovakia Spain Tunisia Turkey Ukraine

RESPONSIBLE

THE PATH WE PURSUE Cetelem’s long-term strategy is providing high quality products and services and building strong ties with its customers, partners and employees. The company’s priorities include customer satisfaction. This is crucial for the sound and continued growth of Cetelem. The way to customer satisfaction is through a personal and responsible approach as well as through developing and innovating our product portfolio in connection with the development of technology and market requirements. A transparent and responsible approach to lending that goes beyond the observance of legal and ethical norms is a natural part of our company. This approach is based on providing sufficient, clear and comprehensible information enabling our clients to make a responsible decision. Our responsible approach includes the principle of rejecting a client who is subject to a risk of insolvency that might cause their inability to meet their obligations. In addition, Cetelem fully respects the principles of the professional and interest groups and associations of which it is a member.

ACTIVE

HOW SUCCESSFUL WE ARE Throughout its existence, Cetelem has helped to implement more than two million projects and developed cooperation with more than 4,500 retailers as part of instalment sales. We continuously monitor new trends and technological opportunities, transforming them in to many innovations and, ultimately, customer satisfaction. Our latest, though not the only, innovations include the launch of the electronic signing of contracts at trade partners’ points of sale and the pre-approved Express Loan. Thanks to its innovative approach and customer confidence, Cetelem has become No 1 on the non-banking consumer credit market and has been continuously strengthening this position. Its market share among non-banking providers of consumer credit associated in the Czech Leasing and Finance Association grew by two percentage points to 34 percent in the first half of this year (source: CLFA, Consumer Credit category). The amount of the newly provided credit reached CZK 5.8 billion in the period, an increase of 11 percent over 2013, while the amount of consumer credit provided by non-banking companies grew 3.7 percent year-on-year in the first half of 2014 (source: CLFA).

TRANSPARENT

AMOUNT OF CREDIT PROVIDED (in CZK billion) 1997 1998 1999 2000 2001 2002 2003 2004 2005

0.054 0.606 2.058 2.728 3.933 4.826 4.731 5.870 7.404

2006 2007 2008 2009 2010 2011 2012 2013

8.932 11.350 12.160 8.666 9.190 9.738 10.365 11.152

COMPETITIVE

SELECTED INDICATORS FOR 2013 (As of 31 December 2013)     

CZK 2.250 billion of equity CZK 19.602 billion of receivables from credit provided CZK 1.392 billion of profit before tax CZK 11.152 billion of newly provided credit in 2013 418 employee (FTE)

INNOVATIVE

OUR HISTORY IN BULLETS 1996  Inception of the company 1997  Provision of the first consumer loan at a trade partner’s point of sale 1998  Launch of the AURA credit card on the Czech market 1999  Co-founding of SOLUS, the first non-banking client information register 2000  Launch of Cetelem Personal Loans 2002  Cetelem becomes a member of the MasterCard International association (as the first non-banking institution on the market) 2003  Launch of the AURA MasterCard Electronic credit cards 2004  Launch of the Auto-Credit/Moto-Credit products for motor vehicle financing 2005  Launch of the Cetelem ON-LINE Loan sale 2006  Launch of the first AURA PLUS credit card with extended functionalities 2007  Extended cooperation with finance facilitators 2008  Launch of the Cetelem Combi Loan for loan consolidation 2009  Issue of the first chip-enabled credit card 2010  Accession to the Non-banking Register of Client Information 2011  Obtaining the Payment Institution licence from the Czech National Bank 2012  Launch of vehicle financing for businesses and corporations 2013  Launch of instalment sales dematerialisation, or a fully electronic loan application process 2014  Launch of contactless payment stickers

AWARD-WINNING

WE WIN Over the course of its history Cetelem has won many awards from both the professionals and the general public. Cetelem products have been regularly voted among the best in the Zlatá koruna (Golden Crown) competition in recent years. The Cetelem Credit Card won the Bronze Crown award in The Public’s Award category in 2012; one year later it won the Silver Crown; and it also succeeded as the best credit product on both the Czech banking and non-banking markets in this category this year. The Auto-Credit/Moto-Credit has also succeeded in this category, coming third in the Entrepreneurs’ Award category and winning the Bronze Crown this year. Cetelem also received numerous awards for its products, services and customer approach as part of the Zlatý měšec (Golden Purse) poll. Cetelem’s strong market position is also illustrated by its position in the ranking of the most successful Czech firms, the Czech Top 100. Cetelem has also won recognition for creativity from marketing, communication and PR professionals through several awards for its 2012 annual report.

CREATIVE

WE CREATE Our creativity is also confirmed e.g., by the awards for the Cetelem 2012 Annual Report won both this and last year. Its unorthodox graphic design thrilled many experts and the report won its respective category in the Golden Semicolon 2013 competition and the Fenix Content Marketing competition for graphic design, and came third in the Czech Top 100 annual report of the year ranking for graphic design. Our creativity reaches far beyond corporate publications, though. We are creative virtually every day, coming up with new features for our existing products, devising entirely new ones and arranging for new partnerships. For us, creativity is one of the focal points through which we listen to our clients’ needs and wishes and which leads towards our customers’ and business partners’ satisfaction. For example, we launched a new programme of rewards for the use of the Cetelem Credit Card this year under the fitting name of Set Up Your Card. Clients can choose one of four rewards depending on their needs, habits and preferences. We have also started issuing contactless payment stickers with credit cards where clients can set up their weekly drawdown limits. Not only did we increase the rewards for the proper repayment of the Cetelem Personal Loan from up to five to up to ten monthly instalments – we have also extended them to all consolidation contracts. Throughout the year, we offer promotions in the form of deferred repayment and loans without a mark-up as part of the credit provided at our trade partners – and not just for conventional consumer credit but for vehicle financing as well.

CONSCIOUS

WE HELP Cetelem supports many cultural, sports and charitable projects. The company focuses its charitable activities on programmes and projects intended primarily for children and young people. For eight years now Cetelem has been helping sexually abused children and young people to reconnect with life values and overcome difficult periods in their lives through the Šance (Chance) project. Helping physically and mentally disabled children is a major part of our charitable activities pursued through financial support to the Zajíček na koni (Hare on Horseback) civic association, the LILA Home for Disabled Children in Otnice and the Luna foundation for the disabled. In addition, Cetelem provides finance to the Veselý vozíček (Jolly Wheelchair), in particular for the rehabilitation of a disabled boy who is finding his way to active life as a sportsman despite his physical handicap. Cetelem has, for a long time also been making regular contributions towards improving the health of a girl suffering from a serious genetically caused degenerative condition. The company also supports the Zdravotní klaun (Health Clown) programme focusing on helping children in hospitals all over the country. The company has been providing long-term support to children’s shelters, aiding to finance the children’s leisure activities in addition to day-to-day operation. Cetelem’s support is provided to the Ledce Children’s Shelter, Domeček (Little House) Children’s Centre and the Senožaty Children’s Shelter. Through Children’s Traffic Foundation (Dětská dopravní nadace) Cetelem supports the education and improves the standard of life for children orphaned as a result of traffic accidents. Cetelem’s employees also contribute to helping the needy through the Pečeme s Cetelem (Baking with Cetelem) project which helps with the financing of small charitable projects. Those who bake the products can choose the recipient of the funds obtained from their colleagues. Cetelem always doubles the amount of funds collected among its employees.

HELPFUL

WE SUPPORT Cetelem started sponsoring Lukáš Bauer, one of the most successful Czech skiers, five years ago. We share his responsible approach to work and his passion for being number one in the field. For three years, we have also been sponsoring VALACHY TOUR, a series of sports/social events in and around Velké Karlovice, as the project’s main partner. Cetelem also became the main sponsor for the Municipal Theatres of Prague in 2010. A year later the company won an appreciation for supporting Czech culture and received the “Ď Award” at the National Theatre. Cetelem was nominated for the award by Municipal Theatres of Prague for its long-term and consistent financial support thanks to which the Theatres can stage new pieces and projects while maintaining reasonable ticket prices, as well as for the financial support to the Holky z kalendáře (Calendar Girls) play. The “Ď Awards” are bestowed annually by a Collegium of five to ten members as an expression of thanks to Czech sponsors for encouraging culture and charity.

DIVERSE

FLEXIBLE

WITH REWARDS

QUICK

HANDY

WITH NO CHARGES

THE PRODUCTS WE OFFER

DIVERSE

CONVENTIONAL CONSUMER CREDIT Conventional consumer credit represents a simple and quick way of financing the purchase of goods and services in instalments directly at points of sale. Cetelem works with a wide network of both physical and on-line shops across the Czech Republic. We were the first in the market to launch biometric signing of contracts at our trade partners’ outlets. This is an innovative method of executing credit agreements using the SignPad device. The loan agreement with the client is signed and then stored exclusively in electronic form. We are gradually extending this process of taking out loans to additional outlets and trade partners. In effect, the standard paper contract forms will be replaced by a record on a modern permanent data medium. For instalment sales, we have been the first to offer the pre-approved Express Loan enabling the clients to apply for a loan from the comfort of their home through certain trade partners’ websites or directly on the Cetelem website.       

Physical as well as on-line shops Goods financing starting from CZK 3,000 Selection from several credit products Client-selectable amount of cash payments, loan repayment period and monthly payment amounts Simple and quick processing directly in the shop Immediate acquisition of the title to the goods purchased Broad network of trade partners throughout the Czech Republic

FLEXIBLE

CREDIT CARDS Credit cards (or revolving loans) are a flexible tool for drawing funds as part of an approved facility for both regular purchases and unexpected events. On-line purchases are made using the Virtual Card, one of the most secure tools on the Czech market for on-line payments, which clients receive free of charge in addition to the Cetelem Credit Card. Clients can also apply for a contactless payment sticker. Up to five stickers can be obtained for one card and each of them can be set up for a weekly spending limit starting at CZK 50. Thanks to the rewards for card usage as part of the Set Up Your Card programme, clients can earn up to CZK 9,600 a year. They can use the Client Zone, which is adapted for mobile phones, at virtually any time to monitor all changes regarding the card, access an electronic statement, and transfer funds from the card to a bank account.    

55-day interest-free period Free card issue and activation, complementary Virtual Card for secure payments on the Internet Free issue, activation and use of up to 5 contactless payment stickers Choice of one out of four rewards for card usage:  4% of all purchases at any fuel filling station in the Czech Republic and abroad, up to CZK 800 per month  3% of all purchases on the Internet, up to CZK 600 per month  2% of all purchases in the Czech Republic, up to CZK 400 per month  No charge on all cash withdrawals of at least CZK 1,000 from ATMs in the Czech Republic and abroad  The first 3 cash withdrawals from ATMs in the Czech Republic at no charge  NON-STOP access to the credit account

WITH REWARDS

CETELEM PERSONAL LOANS Cetelem’s Personal Loans are special- or any-purpose consumer loans. They are intended for the financing of the clients’ demanding needs as well as for consolidating existing standard and revolving loans. This January, we launched rewards for proper repayment, thanks to which clients can receive back up to 10 monthly repayments. The rewards also apply to consolidation loans       

Easy arrangement on-line, over the telephone or at a branch Any-purpose and special-purpose credit products; consolidation of existing loans Financing of projects associated with housing and refurbishments No charge for the administration of the credit account No charge for early repayment Loan amounts ranging from CZK 20,000 to CZK 1,000,000 Up to 10 repayments’ worth reward for proper repayment

QUICK

AUTO-CREDIT/MOTO-CREDIT The Auto-Credit/Moto-Credit is intended for the financing of the purchase of a new or used vehicle by consumers as well as entrepreneurs and companies directly from a network of both new and used car dealer partners all over the Czech Republic. The agreement for this type of loan for the selected vehicle is concluded simply and quickly within 30 minutes from the submission of the application.       

Financing of new and used vehicles for consumers and business entities/companies CZK 20,000 to 1,000,000 credit without a guarantor (CZK 20,000 to 500,000 for motorcycles) Selectable length of the repayment period Easy arrangement at the dealership Immediate acquisition of the title to the vehicle Broad network of trade partners throughout the Czech Republic Suitable also for vehicles attracting a deductible VAT and government contributions

HANDY

INSURANCE Cetelem, in cooperation with partner insurers, offers its clients a wide variety of insurance products. In addition to insurance cover pertaining to the credit products such as the insurance of the ability to repay, clients can take out various individual and complementary policies.         

Payment protection insurance Theft insurance and the Home Assistance cover Insurance policy covering credit card abuse and document loss or theft Accident insurance Insurance of your card and personal belongings Insurance of outgoings ProCetelem Travel insurance Travel insurance on the Cetelem Credit Card ProCetelem Auto Wüstenrot third-party motor liability insurance and accident insurance

WITH NO CHARGES

MORTGAGE LOANS Last April, Cetelem in cooperation with the Wüstenrot financial group started to offer the ProCetelem Wüstenrot mortgage loans. Clients can use the mortgage loan to finance new properties or to refinance their current loan for housing. This product features, for example, the option to set the interest rate up to nine months in advance.       

Buying a new property Refinancing No charge for mortgage loan processing No fee for loan account keeping No need to have a current account with Wüstenrot hypoteční banka Acceptance of property valuation in the case of refinancing; new valuation arranged free of charge if needed Interest rate can be agreed nine months in advance