STATUS OF THE PRIVATE EQUITY MARKET IN THE CEE COUNTRIES C5 CEE PRIVATE EQUITY FORUM DAVID BERNARD 23 MARCH 2009

2 M&A ACTIVITY DROPS EVEN FASTER IN CEE THAN ELSEWHERE Source: Thomson Reuters / Freeman & Co Global M&A ActivityM&A Activity With CEE Involvement CEE M&A Financial Advisory Fee Pool Drop in M&A volume more pronounced in CEE (-44% 2008 vs. 2007) than in rest of the world (-37%) Average deal size in CEE goes from $14m in 2000 to $85m in 2007 and $3m in 2009 Financial advisor fees do not decrease quite as sharply due to deal size effect Particularly slow start of 2009 in CEE NB: Central & Eastern Europe defined as including Austria and Russia; ‘CEE Involvement’ defined as target nation or acquiror nation in CEE $Mil

3 VOLUME DROP IS REFLECTED ACROSS MOST INDUSTRY SECTORS CEE M&A ActivityCEE PE-Backed M&A Activity Source: Thomson Reuters

4 CROSS-BORDER M&A ACTIVITY IN CEE FALLS IN LINE WITH GENERAL M&A CEE M&A ActivityCEE Cross-Border M&A Activity Source: Thomson Reuters

5 PRIVATE EQUITY BACKED M&A ACTIVITY FALLS EVEN FASTER THAN STRATEGIC M&A PE-Backed M&A ActivityM&A with Strategic Buyer Source: Thomson Reuters

6 ECM ACTIVITY DROPS EVEN FASTER IN CEE THAN ELSEWHERE Source: Thomson Reuters / Freeman & Co Global ECM ActivityCEE ECM Issuers CEE ECM Issuance Fee Pool Drop in equity issuance more pronounced in CEE (-29% 2008 vs. 2007) than in rest of the world (-17%) Average equity deal size in CEE is stable in 2008, and about 80% higher than in rest of the world Particularly slow start of 2009 in CEE $Mil

7 IN NUMBER OF EQUITY ISSUANCE DEALS, THE SLOWDOWN IS MUCH HIGHER IN CEE Global ECM Activity EMEA ECM Activity CEE ECM Activity Source: Thomson Reuters Number of Issues

8 DEBT ISSUANCE IN CEE MIRRORS OTHER REGIONS Source: Thomson Reuters Global Syndicated Loan Issuance ActivityCEE Syndicated Loan Issuance Activity Global DCM Activity CEE DCM Activity

9 THE 2008 SURGE IN EQUITY INVESTED REFLECTED A HANDFUL OF LARGE DEALS Source: Thomson Reuters

10 THE 2008 SURGE IN EQUITY INVESTED REFLECTED A HANDFUL OF LARGE DEALS Source: Thomson Reuters

11 BUYOUT ACTIVITY DOMINATES ALL OTHER INVESTMENT STAGES IN CEE Source: Thomson Reuters

12 FUNDRAISING HAS GONE DOWN AS IN OTHER REGIONS Source: Thomson Reuters

13 EUROPEAN PRIVATE EQUITY FUND PERFORMANCE AS OF 31-DEC-2008 Since Inception 3-year IRR 5-year IRR 10-year IRR 20-year IRR Early Stage-1.1%-1.7%-0.2%-2.4%-1.1% Balanced3.3%1.7%2.7%0.6%3.3% Development Stage7.4%0.3%4.2%3.7%7.4% All Venture Funds3.1%0.0%2.1%0.4%3.1% All Buy-Out Funds14.2%8.5%14.1%13.3%14.1% Generalist9.1%5.5%7.9%8.0%9.2% All Private Equity10.3%6.3%10.5%9.3%10.4% Source: Thomson Reuters / EVCA Based on cashflows from 1314 funds

14 CEE PRIVATE EQUITY FUND PERFORMANCE AS OF 31-DEC-2008 Since Inception 3-year IRR 5-year IRR 10-year IRR 20-year IRR Early Stage-0.2%-2.0%3.2%-0.1%-0.2% Balanced-3.6%-2.1%-0.8%-3.6% Development Stage5.0%4.7%11.8%5.5%5.0% All Venture Funds1.5%1.9%7.2%1.9%1.5% All Buy-Out Funds36.4%24.4%20.8%45.9%36.4% Generalist7.7%13.4%15.3%8.9%7.7% All Private Equity4.9%7.4%10.3%5.9%5.0% Source: Thomson Reuters Based on cashflows from 61 funds

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