Swedish-American Life Science Summit 2008 Biotech under Dire Conditions Aug 20, 2008 Thomas von Koch

® 2008 EQT – All Rights Reserved Strictly private and Confidential Entrepreneurs with an industrial orientation and a strong will to drive change Part of the Wallenberg network Strong record of delivering superior returns to investors over time Founded in 1994, over €12Bn in capital raised 3 business lines – Buy-out in Europe and Greater China – Mezzanine – Special Opportunities 178 people 13 offices EQT today: Northern European private equity fund with local knowledge New York 1 Partners 3 Other Professionals Hong Kong 2 Partners 7 Other Professionals Helsinki 1 Partner 6 Other Professionals Copenhagen 3 Partners 5 Other Professionals Oslo 1 Partner 2 Other Professionals Stockholm 12 Partners 18 Other Professionals Munich 7 Partners 14 Other Professionals Zurich 1 Partner Frankfurt 2 Partners 5 Other Professionals Shanghai 3 Professionals

® 2008 EQT – All Rights Reserved Strictly private and Confidential Approx. 30 divestments (1997 – 2008) Analysis of value creation in all EQT Equity’s exits % of equity created Label 32% 17% Sales growth Margin expansion Strategic re-positioning Debt pay down Value Driver

® 2008 EQT – All Rights Reserved Strictly private and Confidential Proof of industrial model Yearly growth during ownership period in all investments held more than 1 year Sales 13% Sales 13% EBITDA 20% EBITDA 20% Number of employees 12% Number of employees 12%

® 2008 EQT – All Rights Reserved Strictly private and Confidential Opportunities exist across segments, so far EQT has made acquisitions in Medtech mainly Pharmaceuticals Large cap pharma Niche pharma Biotech Medtech* Diagnostic & Monitoring PI&D, Consumables & Supplies Service providers PrimaryAcute care Post- sub- acute care B2B healthcare services (& intermediaries) Healthcare ITCXOs Product distribution Physician Practice Mgmt Disease Management Other

® 2008 EQT – All Rights Reserved Strictly private and Confidential ”

® 2008 EQT – All Rights Reserved Strictly private and Confidential Private Equity fundraising still strong – albeit slowing down USD (Billion) Source: US Data: Private Equity Analyst, Europe Data: EVCA Does not include Real Estate or Fund of Funds BO = 64% BO = 90%

® 2008 EQT – All Rights Reserved Strictly private and Confidential Asset Managers over-allocated to PE PE Managers performance rapidly deteriorating Risk/ Reward for asset class in current market not appealing Fundraising – Dire Future PE Fund Managers will hold on to their money

® 2008 EQT – All Rights Reserved Strictly private and Confidential Current financing situation - deal volume and deal count Q4 Q1 Deal count Q2 Q3 Source: Thomson Financial, JP Morgan Volume (in €bn)Deal count

® 2008 EQT – All Rights Reserved Strictly private and Confidential 300 Bn USD of LBO debt “stuck” in banks’ balance sheets All LBO debt trading below nominal value London/ NY bank syndication markets closed – uncertain when/ if they will open Very hard to make transactions in excess of 1 Bn Euro Debt Market Closed Very few LBO transactions will be made

® 2008 EQT – All Rights Reserved Strictly private and Confidential Not a functioning debt market No exit market available – IPO closed – PE semi-closed – Industrial buyers window closing Business cycle in decline Deal Activity Collapsing

® 2008 EQT – All Rights Reserved Strictly private and Confidential MBA IncorporadoNmas 1 Private Equity2008S. Europe 184 Verna Group IIBank of Scotland2008UK & Ireland 72 Molnlycke Health Care IIIInvestor & Morgan Stanley2007Scandinavia DakoEQT2007Scandinavia 943 Laboratorios IndasVista Capital2007S. Europe 361 Barloworld ScientificNova Capital2007UK & Ireland 112 Craegmoor Healthcare IIAdvent International2008UK & Ireland 424 Healthcare HomesBowmark Capital2008UK & Ireland 109 BUPA HospitalsCinven2007UK & Ireland USP Hospitales IICinven2007S. Europe 672 Gambro HealthcareBridgepoint2007Scandinavia 596 Medi-Partenaires IILBO France2007France 567 Care Principles IIDelta Three2007UK & Ireland 400 Healthcare at Home IIHutton Collins2007UK & Ireland 373 Mater Private IICapVest2007UK & Ireland 347 Casa Reha IIIHgCapital2007Germanic 346 Ultralase3i2007UK & Ireland 254 Integrated Dental HoldingsMerrill Lynch2008UK & Ireland 427 Active Pharmaceutical Ingredients (API)3i2008Scandinavia 289 Premier Research GroupECI Partners2008UK & Ireland 87 Alliance Medical IIIDubai International Capital2007UK & Ireland 912 Oasis HealthcareDuke Street2007UK & Ireland 130 Penn PharmaceuticalsLDC2007UK & Ireland 98 SynerlabAXA PE2007France 90 During last 18 months 24 major PE deals have been made in European healthcare MEDTECH* HEALTHCARE PROVIDERS PHARMA, BIOTECH & OTHER HEALTHCARE COMPANYBUYERYEARREGIONDEAL SIZE (€M) Note:* Medtech includes medical devices and supplies; Includes all LBO transactions involving European targets valued >$75M by European- and foreign-based firms Source:Bain European Private Equity database

® 2008 EQT – All Rights Reserved Strictly private and Confidential Private market almost closed Buy out liquidity low/ Venture Capital worse Trend of PE money becoming public activist money Trend of PE money becoming debt oriented money. Today equity returns for taking junior debt risk Risk Aversion – where will the money go?

® 2008 EQT – All Rights Reserved Strictly private and Confidential Risk aversion at a high point Nuclear melt down in financial markets must be resolved Negative business cycle sentiment must turn Only positive Healthcare is a defensive sector Concluding remarks It will take time until Private Equity is back to normal