PASHA_BANK ANNUAL REPORT 2021

General Information Financial Information and Risk Management Review Information on Management and Corporate Governance Principles Evaluations Regarding the Activities of the Board of Directors and the Committees Strategy and Budget Committee The Strategy and Budget Committee was established to provide assurance on the preparation of the Bank’s business and strategy plans and annual budget in accordance with the strategy, operation and budget management processes approved by the controlling shareholder; to advise the Board of Directors, and to assist it in fulfilling its duties and responsibilities. The present structure of the committee is given below. Name‑Surname Committee Position Shahin Mammadov Chairperson Farid Mammadov Member H. Cenk Eynehan Member The Committee carries out its activities in accordance with the Strategy and Budget Committee Regulation enforced on 23 September 2016 and most recently amended on 16 June 2020. The Committee meets as often as business needs require and at least once every three months. Board of Directors’ Evaluation of Committee Effectiveness The Strategy and Budget Committee presented the results of its activities to the Board of Directors in quarterly activity reports. The Strategy and Budget Committee held five meetings during the reporting period and passed decisions regarding the agenda items. In the meetings, the Committee reviewed the Bank’s 2022 budget and macroeconomic and market projections in connection with budgeting, interim financial performance and financial statements, year‑end forecasts, internal documents about the Committee, and macroeconomic projections, execution plans for strategic initiatives and projects carried out, Information Systems Strategy Plan for the 2021‑2023 period, Talent Development and Retention Strategy, the Committee’s periodic activity reports, key performance indicators, the impacts of COVID‑19 and the actions taken in response, and the market and competitive environment. Meeting Dates Number of Attending Members Type of Meeting 01 February 2021 3 Videoconference 30 April 2021 2 Videoconference 30 July 2021 3 Physical Attendance 22 October 2021 3 Physical Attendance 10 November 2021 3 Videoconference