Market Trends in Information Technology Investment 5 th Venture Capital Forum, Athens 16/6/2004 Vectis Capital Yannis Tsakiris

 Management company of Venture Capital / Private Equity Funds  Founded in August 2000  Member of Leventis Group  1st fund under management: ~ € 30 m  Provider of: Funds, Consultancy, Business Synergies Vectis Capital

Investment Model HIGH MID LOW HIGHHIGH HIGHHIGH MIDMID MIDMID LOWLOW LOWLOW INVEST SELECTIVELY INVEST DO NOT INVEST PRODUCT COMPETITIVENESS MARKET POTENTIAL Vectis Capital ► Adequate Management Team ► Time Horizon of years

 A form of financing, which gives up some ownership and control of the company in exchange for capital, over a limited time frame, usually 4-6 years.  The exit of the venture capitalist can be an IPO, a merger or acquisition, or a trade sale.  Unlike banks, which seek their return through interest payments, venture firms look for capital appreciation. Their payoff is how much their original investment has increased.  The fundamental investment criteria of venture capitalists boil down to these three points:  the management team  the product or service  the market Venture Capital Fundamentals Vectis Capital

Market Trends in Information Technology Investments  Increased investment appetite There is significant availability of capital. Investors are more familiar with risk. New investment structures and instruments have emerged.  Global competition among Venture Capitals for quality investments Sustainable technology attracts the best financing. I. The Environment

Vectis Capital Market Trends in Information Technology Investments  Globalisation in Investments & Exits Venture Capitals from different continents are co-investing. Exits as IPOs or trade sales can take part in any place of the world. We see more and more Transatlantic and cross-European investment as well as exit deals.  For Greece: Funding: Emergence of Incubators, Technology Parks etc. Deals: Emergence of Academic and Research Institutes spin offs. I. The Environment

Vectis Capital Major target are Products/Services:  With global market potential  A hot example: Business Efficiency/Effectiveness Increased Sales Increased Productivity Cost Savings Customer Profitability New Customer Loyalty New Speed of Transactions NewSecurity objectives II. The Trend Market Trends in Information Technology Investments

Vectis Capital » Business Intelligence Systems to monitor and manage individual transactions and business processes in real-time. e.g. SECURITY: can generate alerts when an important event occurs or when there is a departure from expected behaviour » Business Integration Technologies Long-running processes for business-to-business integration e.g. ON LINE TRANSACTIONS: Business Exchanges Business Efficiency/Effectiveness »Supply Chain Execution/Planning » Supply Chain Execution/Planning real-time information about order status, inventory levels, as well as other supply chain events such as deliveries, warehousing, shipments and production. e.g. FOOD INDUSTRY: from ingredients to full recall of products Software Areas that will excel

Vectis Capital MANTIS INFORMATICS S.A. Case Study in Supply Chain Execution Excellent Market Potential  Excellent Market Potential Internationally Competitive Product  Internationally Competitive Product Strong Management Team with International Experience  Strong Management Team with International Experience

Vectis Capital The Supply Chain Software Market Excellent Market Potential  Excellent Market Potential Logistics Vision TM

One of the few 100% Microsoft.NET Supply Chain Execution suite available worldwide today. Based on open and de-facto standards supporting the two most popular RDBMS systems, Oracle and Microsoft SQL server. Multilingual & Easily upgradeable, based on the latest release control techniques. Already projects abroad Vectis Capital Logistics Vision TM Internationally Competitive Product  Internationally Competitive Product

Vectis Capital Management of all activities of single or multi-site private, and public distribution centres. Management and optimisation of the distribution of goods. Management of raw, packaging and semi-finished materials, optimisation of their flow to production areas, and total lot traceability. I. Production II. Warehousing III. Distribution Logistics Vision TM

Vectis Capital Focusing on the “front line”, that is where salesmen, merchandisers, money collectors and drivers work. Achieve and maintain the desired customer service level at the lowest possible inventory cost through demand forecasting and optimised replenishment of distribution centres and points of sales. IV. Front Line Automation V. Inventory Optimisation Logistics Vision TM