EBRD Private Equity Funds Portfolio to 31 December 2012

Contents

1. 2. 3. 4. 5. 6.

Introduction Funds Portfolio EBRD Net Returns & Performance Performance and Composition of Underlying Portfolio LP Data General Information

© European Bank for Reconstruction and Development 2014

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Introduction

© European Bank for Reconstruction and Development 2014

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Why does EBRD invest in Private Equity?

Efficiently deploy equity capital to companies

Build a sustainable private equity industry in the region

Foster sustainable investments and strong returns

Share extensive in-house experience of macro, equity sector and country issues with fund managers and institutional investors

Maintain existing relationships with successful fund managers and support sustainable flow of funding

Support the establishment of first time and innovative funds

Provide active supervision and set high standards on integrity, processes and ESG

Set return benchmarks and report widely on the regional performances through conferences and industry associations

Provide co-investment facilities (debt, mezzanine and equity)

Continue to cooperate with other IFIs to mobilise institutional investors into the region

© European Bank for Reconstruction and Development 2014

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© European Bank for Reconstruction and Development 2014

0.010%

0.014%

0.017%

0.018%

0.020%

0.023%

0.033%

0.069%

0.073%

0.082%

0.084%

0.086%

0.103%

0.109%

0.125%

0.137%

0.137%

0.153%

0.159%

0.190%

0.211%

0.226%

0.244%

0.247%

0.258%

0.260%

0.312%

0.352%

0.369%

0.373%

0.530%

0.602%

Private Equity Penetration

Private Equity Investment as a Percentage of GDP by Country

Source: EVCA/PEREP_Analytics 5

Key Facts about EBRD’s work in Private Equity •

Most Active private equity fund investor in Central and South-East Europe (CSE) and the Commonwealth of Independent States (CIS).

•

Covering a wide spectrum of fund sizes and investment strategies; regional and country-specific funds, generalist and sector-specific funds.

Historic Activity:

•

20 years investing in the asset class with EUR 3.4 billion commitments to 147 funds with total capital of EUR 18.2 billion.

•

Around 60% of funds (by number) are first time funds.

•

Supporting 83 fund managers.

•

Over 850 fully exited underlying investees in the funds’ portfolio.

Current Portfolio: •

Current portfolio of 96 active funds managed by 62 fund managers with EUR 2.7 billion in commitments with total capital of EUR 16.1 billion.

•

Around 45% of active funds (by number) are first time funds.

•

Over 400 unrealised underlying investees in the funds’ portfolio. © European Bank for Reconstruction and Development 2014

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Funds Portfolio

© European Bank for Reconstruction and Development 2014

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Equity Funds Commitments by Fund Vintage Year Fund Investment Activity by Region & Vintage Year 400

14

350

12

300 10

8 200

6

No. of Funds

EUR Millions

250

150 4

100 2

50

0

0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CEE/SEE

Russia/CIS

SEMED

Number of Funds

EBRD net funds portfolio as at 31/12/2012 SEMED includes: Tunisia, Morocco, Egypt and Jordan © European Bank for Reconstruction and Development 2014

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Equity Funds Active Portfolio by Region and Fund Size EBRD Fund Commitments by Region and Fund Size 100%

SEMED

90% 80%

100% 90%

Russia/CIS

80%

70%

70%

60%

60%

50%

50%

40%

40%

30%

CEE/SEE

200-300m

100-200m

30%

20%

20%

10%

10%

0%

300m+

0-100m

0% Capital Commited

Capital Committed

EBRD net funds portfolio as at 31/12/2012 SEMED includes: Tunisia, Morocco, Egypt and Jordan © European Bank for Reconstruction and Development 2014

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EBRD Net Returns & Performance

© European Bank for Reconstruction and Development 2014

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EBRD Equity Funds Portfolio Net Horizon IRRs vs. Benchmarks Net Horizon IRRs by Currency Three Years EUR

USD

EBRD Private Equity Portfolio - All

Five Years

Ten Years

Since Inception

9.5%

2.2%

18.9%

9.7%

Cambridge Western Europe Private Equity & Venture Capital Index (EUR)

13.9%

3.7%

13.6%

N/A

Cambridge Western Europe Private Equity Only Index

14.0%

3.8%

14.7%

N/A

MSCI Europe Index (EUR)

6.2%

-2.3%

5.9%

N/A

EBRD Private Equity Portfolio - All

6.7%

0.2%

23.6%

11.4%

Cambridge Global ex U.S. Private Equity & Venture Capital Index

10.8%

2.8%

14.0%

N/A

Cambridge Western Europe Private Equity & Venture Capital Index (USD)

10.8%

1.5%

15.8%

N/A

Cambridge Western Europe Private Equity Only Index

14.0%

3.7%

14.7%

N/A

5.0%

-0.6%

16.9%

N/A

MSCI Emerging Markets Index Source: EBRD Net Funds Portfolio, Cambridge Associates, as of 31/12/2012

© European Bank for Reconstruction and Development 2014

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Performance and Composition of Underlying Portfolio

© European Bank for Reconstruction and Development 2014

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Underlying Investments by Country Active Investments in Underlying Portfolio by Country

Bulgaria, 4.6% Hungary, 3.4% Lithuania, 2.4% Serbia, 1.2% Croatia, 1.1% Estonia, 1.1% Latvia, 0.9% Slovak Republic, 0.8% Albania, 0.6% Slovenia, 0.2% Kosovo, 0.1% Bosnia and Herzegovina, 0.1%

SEMED 0.2% Russian Federation 34.8%

Rest CSE 16.5%

Rest CIS 9.1%

Ukraine, 5.7% Kazakhstan, 3.0% Azerbaijan, 0.1% Georgia*, 0.1% Mongolia, 0.1% Kyrgyz Republic, 0.1%

Turkey 6.7% Czech Republic 7.0%

Poland 17.9% Romania 7.8%

EBRD underlying investments portfolio as of 31/12/2012 *Georgia formally withdrew from the CIS effective 17 August 2009 SEMED includes: Tunisia, Morocco, Egypt and Jordan © European Bank for Reconstruction and Development 2014

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Underlying Investments by Sector Active Investments in Underlying Portfolio by Sector

Services 27.4%

Agriculture & Forestry 2.0% Construction 5.1% Manufacturing 5.4%

ICT 24.1% Primary & Energy 6.6%

Consumer 9.0% Pharma & Medical 9.3%

Wholesale & Retail 11.2%

EBRD underlying investments portfolio as of 31/12/2012 © European Bank for Reconstruction and Development 2014

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Investment Activity of EBRD Supported Funds Investments by Vintage Year by Exit Status 140

Unrealised Partly Realised

122

Fully Realised

120

No. Investments by Vintage Year

109 100

100 88

90

80

74 70 64

62

60

60

55 50 44 37

40

45

44 40

41

43

20

20 1

0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 EBRD underlying investments portfolio as at 31/12/2012 © European Bank for Reconstruction and Development 2014

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Exit Activity of EBRD Supported Funds Number of Exits and Mean Cash Proceeds by Exit Year 120

5.0x Pooled TVPI of Exits (excl. Write-Offs) Number of Write-Offs

100

Number of Exits (excl. Write-Offs) 4.0x

3.0x TVPI

Number of Exits

80

60 2.0x 40

1.0x

20

0

0.0x 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

EBRD underlying investments portfolio as at 31/12/2012 © European Bank for Reconstruction and Development 2014

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Gross Snapshot of all Investees

EUR Billions

Gross Snapshot of Investees by Exit Status 20 All Investees Money Multiple: 1.7x; IRR: 17.41%

18 Fully Realised Investees Money Multiple: 2.0x; IRR: 19.3%

16 Partly Realised Investees Money Multiple: 3.5x; IRR: 26.4%

14

Fully Realised EUR 7.4bn

Unrealised Investees Money Multiple: 1.2x; IRR: 7.1%

12 10 8 6

Fully Realised EUR 3.8bn Partly Realised EUR 0.8bn

4 2

Partly Realised EUR 3.0bn

Unrealised EUR 6.9bn

Unrealised EUR 5.6bn

0

Investment at Cost EUR 10.3bn

Investment Value EUR 17.3bn

EBRD underlying investments portfolio as at 31/12/2012 © European Bank for Reconstruction and Development 2014

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LP Data

© European Bank for Reconstruction and Development 2014

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Composition of Investor Base in EBRD funds by Origin Geographical Origin of LPs in EBRD Funds 100%

90%

80%

70%

60%

USA Other

50%

Middle East Europe

40%

Asia

30%

20%

10%

0%

1992-2000

2001-2007

2008-2011

© European Bank for Reconstruction and Development 2014

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Composition of Investor Base in EBRD Funds by Investor Type Types of Investors in EBRD Supported Funds 100% Sovereign Wealth Fund 90%

Private Individual / Trust Pension Fund

80%

NA/Other 70% International Financial Institution 60% Insurance Company 50%

GP/Sponsor Commitment

40%

Government Agency Fund of Funds

30%

Corporate Investor 20%

Capital Markets

10%

Bank Academic Institution / Endowment / Foundation

0%

1992-2000

2001-2007

2008-2011

2012

© European Bank for Reconstruction and Development 2014

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General Information

© European Bank for Reconstruction and Development 2014

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Select Equity Funds Signed in 2012/2013

Mediterannia €20 million EBRD commitment

Mid Europa Fund IV €80 million EBRD commitment

Maghreb Private Equity Fund III €20 million EBRD commitment

Capman Russia Fund II $50 million EBRD commitment

3TS €30 million EBRD commitment

September 2013

September 2013

September 2012

March 2013

May 2013

21 Concordia €30 million EBRD commitment

Earlybird Digital East Fund $35 million EBRD commitment

Avallon MBO Fund €27 million EBRD commitment

Capital North Africa Venture Fund €20 million EBRD commitment

September 2013

November 2013

December 2012

May 2013

© European Bank for Reconstruction and Development 2014

Almaz Capital Russia Fund $50 million EBRD commitment May 2013

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General Information

• Largest available sample of PE performance in Central and South Eastern Europe (CEE/SEE), Russia and the Commonwealth of Independent States (CIS) • Tracks all “gross” investments made by EBRD invested funds as well as “net” returns to EBRD (“tracked portfolio”) • Obligatory reporting by fund managers • No “survivor bias” resulting from only best fund managers reporting

© European Bank or Reconstruction and Development 2014

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EBRD Region • CSE Countries – Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo, Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia, Turkey. • SEE Countries – Albania, Bosnia & Herzegovina, Bulgaria, FYR Macedonia, Montenegro, Romania, Serbia • CEE Countries – Croatia, Hungary, Poland, Slovak Republic, Slovenia, Czech Republic* • Baltic States – Latvia, Lithuania, Estonia • CIS Countries – Armenia**, Azerbaijan, Belarus**, Georgia†, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan**, Turkmenistan, Uzbekistan**, Ukraine and Mongolia • SEMED Countries – Egypt, Jordan, Morocco, Tunisia * Czech Republic ceased to be a country of operation in 2007 but some funds remain exposed to investees in the country. **There are no underlying investments in these countries as of 31/12/2012. † Formally withdrew from the CIS effective 17 August 2009 © European Bank for Reconstruction and Development 2014

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Copyright 2014 EBRD. All rights reserved

This material is for the recipient’s private information. No part of this document may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the Bank. Such written permission must also be obtained before any part of this publication is stored in a retrieval system of any nature. While the information contained herein was compiled by the EBRD, we do not guarantee its accuracy or completeness. We accept no liability in relation to the use of this information. Copyright 2014 European Bank for Reconstruction and Development. All rights reserved.

© European BankBank for Reconstruction and © European for Reconstruction andDevelopment Development 2013 2014

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