TCS Group Holding PLC Held Analyst Day

TCS GROUP HOLDING PLC

TCS Group Holding PLC Held Analyst Day

Moscow, Russia - 4 April 2014. TCS Group Holding PLC (TCS LI) (the "Group"), Russia's leading provider of online retail financial services,including "Tinkoff Credit Systems" Bank ("TCS Bank") and Tinkoff Online Insurance, held an open door sell-side Analyst Day in Moscow on 3 April 2014.

While discussing the current trends in Russian retail lending, TCS Bank's management provided a conservative assessment of the consumer lending environment in 2014.

TCS Bank reiterated its guidance on cost of risk for the whole year 2014 of 15-17%, but stated that its cost of risk in the first quarter of 2014 could be over 17% as a result of the challenging economic environment since the beginning of the year. TCS Bank further stated that the delinquency rate was 12% in January 2014 due to the macro conditions. However, it declined to 11.7% in February 2014.

In 2014, TCS Bank will prioritise risk management to preserve the quality of the portfolio and work to avoid further deterioration in cost of risk. It will maintain low approval rates and low initial limits and continue to focus on its collection strategies. TCS's low-limit strategy enables it to apply a flexible approach to collections during times of economic slowdown.

TCS Bank's management emphasised that TCS Bank will continue to leverage its flexible business model which allows it to respond quickly to external factors and will ramp the business back up into growth as soon as it sees alleviation in risks across the consumer lending market.

The Group has ample liquidity and currently sees no need for new wholesale funding rounds. In March 2014 the Central Bank of Russia registered the increase in TCS Bank's share capital by RUB5.3bn following the injection of primary IPO proceeds. As a result, TCS Bank's N1 capital adequacy ratio grew to 18.5% as of 1 April 2014, having further solidified its capital position.

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About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. In order to support its branchless platform, the Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers.

Since its launch in 2007 by Mr. Oleg Tinkov, one of the best known Russian entrepreneurs with a long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market, with the third largest credit card loan portfolio and a market share of 7.5% based on non-delinquent receivables (according to Central Bank of Russia ("CBR") data, as of 1 January 2014). As of 1 January 2014, the Group has issued 3.9 mln credit cards.

In addition to a market-leading credit card offering, the Group has developed a successful online retail deposits programme. The Group's other innovative lines of business include Tinkoff Online Insurance, which enables the Group to underwrite and sell its own innovative online insurance products, and Tinkoff Mobile Wallet, mobile payment solutions and financial services for Russian consumers.

As of 31 December 2013, the Group's total assets amounted to USD 3 bn, net loans and advances to customers stood at USD 2.3 bn and customer accounts (deposits) amounted to USD 1.3 bn. In 2013, the Group generated a net profit of USD 181 mln and net interest income of USD 843 mln.

The Group is well capitalised with the CBR N1 capital adequacy ratio of 15.8% as of 1 January 2014, and its total capital ratio and Tier 1 capital ratio of 25.03% and 19.85%, respectively.

The Group's class A shares, in the form of Global Depositary Receipts, have been trading on the London Stock Exchange since October 2013. TCS Group Holding PLC's share capital consists of 89,044,396 Class A shares and 92,144,679 Class B shares.

Forward-looking statements

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and TCS Bank. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. The Group and TCS Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and TCS Bank do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group and TCS Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, TCS Bank and their respective operations.