Visit us at: mergermarket – Eye on the Market An overview of PE activity in Eastern European region KamilaVykydalova, Head of Sales Eastern Europe, Mergermarket

Visit us at: AGENDA  Retrospective on PE activity in the region  Outlook, deals and trends to look out for in the future

12 June 2016 mergermarket – Global M&A Intelligence

12 June 2016 mergermarket Intelligence Timeline MONTHS Deal Announcement Advisors Appointed Deal Completion 3

12 June 2016 About mergermarket  Long term M&A strategic intelligence from 250+ journalists  Intelligence from over 2,000 public sources  Extensive historical deals database  The most comprehensive view of any potential or announced M&A event.  135,000 individual users from over 1,600 institutions (Private Equity, Investment Banks, Law firms and corporates)  Mergermarket covers deals above 5 mil Euro

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SEE buyout deals by industry sector value 12/06/2016

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TOP DEALS HISTORIC / FUTURE 12/06/2016insert project title

Announcement DateTarget CompanyTarget CountryBidder CompanySeller Company Deal Value (€m) 15-Oct-09Anheuser-Busch InBev (Central European operations) RomaniaCVC Capital Partners LimitedAnheuser-Busch InBev1, Mar-09Olympic Air SocieteGreeceMarfin Investment Group Holdings SA Government of Greece May-09UPC Telemach d.o.o.SloveniaMid Europa Partners LLPLiberty Global Inc Dec-09Komercijalna Banka AD Beograd (Undisclosed Economic Interests) SerbiaDeutsche Investitions- und Entwicklungsgesellschaft mbH ;EBRD, FC Asset Management Company; and Swedfund International AB Oct-09Havas Ground Handling Comany (35% stake) TurkeyHSBC Investment Bank Holdings Plc; and IS Private Equity Investment Trust TAV Havalimanlari Holding Dec-09Medical Park Hospital Group (40% stake) TurkeyThe Carlyle Group LLCEthem Sancak (Private Investor); and Muharrem Usta (Private Investor) Nov-09Profi Rom Food SrlRomaniaEnterprise InvestorsDuna Waiting Participation BV66 11-Nov-09Ekol Lojistik AS (Undisclosed stake) TurkeyThe Abu Dhabi Investment Company Sep-09Devin ADBulgariaAdvent Water (Luxembourg)Soravia Group AG41 17-Feb-10Centrul Medical Unirea S.R.L (80% stake) RomaniaAdvent International Corporation 3TS Capital Partners; and Dr.Enayati Wargha (Private Investor) 40 Source: mergermarket Top 10 SEE Buyout Deals - 1 January 2009 to 9 May 2010

Announce ment DateTarget CompanyTarget CountryBidder CompanyBidder CountrySeller CompanySeller Country Deal Value (€m) 24-Sep-09Devin AD – provider of bottled mineral water BulgariaAdvent Water (Acquisition vehicle), Advent International Corporation, US based PE firm USASoravia Group AGAustria41 29-Oct-09CableTel AD (70% stake) BulgariaEQT Partners ABSwedenGene E Phillips (Private Investor) USA- 29-Oct-09Eurocom CableBulgariaEQT Partners ABSwedenWarburg Pincus LLC USA- 23-Oct-09Rohe Bulgaria OOD; Rohe Latvia Ltd; Rohe Romania SRL;Rohe Srbija doo; and Rohe UAB BulgariaTokheim SASFranceA. Rohe Holding GmbH Austria- 09-Oct-09Interaktivni Tehnologii AD BulgariaMid Europa Partners LLP United Kingdom - Top 5 Bulgarian Buyout Deals - 1 January 2009 to 9 May 2010

Key Features of recent PE deals in the SEE  Bolt on acquisitions  Lower risk, smaller stakes  Different private equity model – great focus on operations rather financial engineering  Appetite for exits  Secondary buyout

Outlook: Heat Chart – Eastern Europe PolandRussiaHungaryUkraine Czech Republic RomaniaCroatiaSerbia Macedoni a OtherTOTAL Consumer Industrials & Chemicals Energy, Mining & Utilities TMT Financial Services Transportation Construction Leisure Business Services Real Estate Pharma, Medical & Biotech Agriculture Government21 3 Defence 1 1 TOTAL

PE Deals to look out for in the future in the SEE  Energy 21, Czech renewable energy co with Mid Europa Partners on board, looking to acquire solar power projects (late stage of development) in Romania, Bulgaria, Turkey, Greece, and wind power projects in Poland;  Telelink, Bulgarian mobile network rollout services co (with subsidiaries in SEE and Ukraine) is eyed by PEs (according to advisor) but no bidder names at this point  Bancroft Private Equity says in 2010 will wrap up two deals in Romania, Serbia or Bulgaria and one in Turkey ( light manufacturing including agro-business; business services such as logistics and engineering); deals of between EUR 10m and EUR 20m;  Societe Generale Asset Management (SGAM) has acquired 29% stake in Romanian medical services co Medlife and now looking to acquire more in the sector in the region;  Blackstone eyeing Serbian companies Delta Maxi (retailer); RTB Bor (mining); Jat Tehnika;  Salford has been trying to sell Serbian Danube Foods Group (Kniaz Milos and Bambi);  GED (Iberian PE) looking for buyers for Fonomat, a Romanian mobile and telecom services retailer (160 outlets);

Spotlight: Private Equity  Expectation that PE will drive deal flow in Eastern Europe in the next 12 months  PE in Eastern Europe is less driven by leverage in comparison with the rest of Europe and Anglo Saxon countries, higher ability to execute deals  Comeback of exits  Expected growth of IPO’s of portfolio companies

Challenges  Securing finance  Price of finance  Valuation gap  Attracting non-SEE players to the region  Unstable regulatory environment  Uncertain political environment and transparency

Thank you for your attention!