Performance of EBRD Private Equity Funds Portfolio Data to 31 st December EBRD 2011, all rights reserved

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1 Performance of EBRD Private Equity Funds Portfolio Data to 31 st December

2 Portfolio Overview 1

3 EBRD in Private Equity EBRD s portfolio of funds: over 15 years of investing in the asset class 133 funds 88 fund managers EUR 2.9 billion in commitments (USD 3.6 billion) to funds with capital of EUR 14.4 billion (USD 18.2 billion) 1,163 underlying investments, up to 70% exited. Largest PE Fund investment program dedicated to the region* Note: EBRD tracked portfolio only to end 2010, excludes real estate funds Note: The number of underlying investments exclude regional investments and investments in Greece * Russia, CIS and CSE (Please see definitions at end of presentation) 2

4 EBRD Commitments Over Time EUR Millions No of Funds Vintage Year 0 CEE CIS SEE Number of Funds 3

5 Fund Raising Vs Investments 3,000 74% 2,500 EUR Millions 2,000 1,500 1, % 23% 34% 59% 28% 24% 22% 27% 20% 42% 29% 14% 14% 14% 13% 11% 20% 28% Commitments Raised by EBRD Funds by Year Annual Investments EBRD Commitment as % Of Total Fund Capital 4

6 EBRD Commitment by Fund Stage EUR Millions 10,000 8,000 6,000 4,000 2,000 - EBRD Portfolio Buyout Growth / Expansion 10 6 Other Seed / Start-up Fund Size EBRD Commitment Number of Funds Other include Distressed/Turnaround funds, funds of funds and infrastructure funds Note: EBRD tracked portfolio only to as of end 2010 CSE Region EUR Millions Russia/CIS Region EUR Millions 6,000 4,000 2,000 5,000 4,000 3,000 2,000 1, Buyout Growth / Expansion Other 3 1 Seed / Start-up Growth / Expansion Other Seed / Start-up 5

7 EBRD Commitment by Fund Size EUR Millions EBRD Portfolio 4,000 3,500 3,000 2,500 2,000 1,500 1, % 45 44% EUR Millions Fund Size EBRD Comit. Number of funds Note: Percentage is the share of EBRD commitment of the total fund capital Note: EBRD tracked portfolio only as of end % 15 17% % 6% EUR Millions CSE Region Russia/CIS Region EUR Millions 3,000 2,500 2,000 1,500 1, ,000 1,500 1, % 32% % 23% 7% 15% EUR Millions 10 66% % 3 44% 18% 1 13% 3% EUR Millions 6

8 EBRD Number of Investments and Exits Transactions EBRD Portfolio CSE Region Transactions Russia/CIS Region Investments Exits WOs Note: Data as of end 2010 Transactions

9 Holding Period by Investment Vintage Years EBRD Portfolio CSE Region Russia/CIS Region Average Holding Period Average Holding Period Average Holding Period Years Years Note: EBRD tracked portfolio only as of end 2010 Note: Fully realised investments only, excludes written off investments Note: The exit year is going up to 2007 to provide meaningful data 8

10 EBRD Returns 9

11 EBRD Net Horizon Returns: All Funds Returns as at December Three Years Five Years Ten Years Since Inception*** USD EBRD Private Equity Portfolio* -3.80% 13.83% 17.56% 12.14% Cambridge Emerging Markets Venture Capital & Private Equity Index** -5.86% 10.9% 14.86% 12.62% EUR EBRD Private Equity Portfolio* -0.86% 10.95% 12.03% 10.10% EVCA, All Private Equity** -3.00% 5.40% 5.10% 9.70% Source: Cambridge Associates, EVCA/Thomson Reuters, Bloomberg and EBRD * EBRD tracked portfolio pooled end-to-end return, net of fees, expenses, donor grants and carried interest. Excludes property funds, and includes liquidated partnerships. ** Pooled end-to-end return, net of fees, expenses, and carried interest. The "Since Inception" figure represents the net pooled IRR since inception for funds formed between 1980 and *** Inception is consistent with

12 EBRD Net Horizon Returns: Breakdown Returns as at Three Five Ten Since December Years Years Years Inception* USD EBRD Private Equity Portfolio - All -3.80% 13.83% 17.56% 12.14% CSE -6.87% 9.35% 13.41% 10.22% Russia/CIS 0.76% 20.15% 22.91% 14.56% CSE/Survivors -6.06% 9.35% 14.89% 13.09% Russia/CIS Survivors 1.15% 15.86% 23.83% 19.80% EUR EBRD Private Equity Portfolio - All -0.86% 10.95% 12.03% 10.10% CSE -4.02% 7.11% 8.82% 8.77% Russia/CIS 3.83% 16.26% 16.17% 11.72% CSE Survivors -3.22% 7.49% 10.51% 11.79% Russia/CIS Survivors 4.28% 12.86% 18.08% 16.77% * Inception differs over criteria and region 11

13 Net Vintage Groups Multiple TVPI Note: TVPI = Total Value to Paid In, DPI = Distributions to Paid In Note: Up to 2009 vintage year to provide meaningful data Vintage Year DPI 12

14 Gross Snapshot: All Regions 14,000 To End ,000 To End ,000 Fully Realised (Including WO) Partially Realised 12,000 Fully Realised (Including WO) Partially Realised 10,000 Unrealised 10,000 Unrealised 6,551 EUR Millions 8,000 6,000 2,870 All 1.59x 17.3% FR 2.23x 20.5% 6,405 EUR Millions 8,000 6,000 3,065 All 1.71x 17.01% FR 2.14x 20.12% 1,466 4, PR 2.60x 23.3% 987 4, PR 3.06x 26.33% 2,000 3,851 UR 1.01x 0.62% 3,907 2,000 4,137 UR 1.24x 6.09% 5,150 0 Investments at Cost Total Value EUR 7,103m EUR 11,299m 0 Investments at Cost EUR 7,681m Total Value EUR 13,167m Note: EBRD tracked portfolio only; Data as of end

15 Portfolio Breakdown 14

16 Investments by Country (by Investment Cost) Since Inception to End 2010 Western CIS & Caucasus 4% Baltics 5% Bulgaria 6% Others* 6% Hungary 6% Czech Republic & Slovakia 9% Romania 9% Central Asia 3% Russian Federation 29% Poland 23% *Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and Herzegovina and Kosovo ** Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine ***Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan ****Baltic countries include: Latvia, Lithuania and Estonia Czech Republic 7% Croatia 2% Romania 5% Poland 8% Romania 10% Ukraine 14% Czech Republic 2% Turkey 4% Poland 12% Turkey 14% Estonia 1% Kazakhstan 15% Russian Federation 49% Bosnia and Hungary Ukraine Herzegovina 1% 2% 1% Slovak Republic 1% Bulgaria 1% Russian Federation 51% 15

17 Exits by Country (by Investment Cost) Since Inception to End 2010 Others 2% Central Asia 3% Baltics 4% Bulgaria 5% Romania 9% Hungary 10% Czech Republic & Slovakia 11% *Others include: Serbia, Croatia, Turkey, Albania, Slovenia, Macedonia, Bosnia and Herzegovina and Kosovo ** Western CIS and Caucasus include: Azerbaijan, Georgia, Moldova and Ukraine ***Central Asia include: Kazakhstan, Kyrgyz Republic and Turkmenistan ****Baltic countries include: Latvia, Lithuania and Estonia Western CIS & Caucasus 2% Russian Federation 24% Poland 30% FYR Macedonia 1.97% Ukraine 3.75% Kazakhstan 4.88% Czech Republic 8.29% Poland 20.99% Croatia 2% Bosnia and Herzegovina 3% Estonia 3% Romania 4% Slovak Republic 6% Hungary 12% Hungary 1.31% Ukraine 1% Czech Republic 16% Bulgaria 0.90% Serbia 1% Albania 0.28% Lithuania 0.38% Albania 0.11% Russian Federation 23% Russian Federation 57.64% Poland 29% 16

18 Investments by Sector (by Investment Cost) Since Inception to End 2010 Agriculture & Forestry 2% Primary & Energy 5% Construction 6% Manufacturing 6% Pharma & Medical 7% Consumer 9% TIM 29% Primary & Energy 3% Consumer 3% Manufacturing 7% Pharma & Medical 10% Agriculture & Forestry 12% Consumer 6% Pharma & Medical 7% Construction 3% Wholesale & Retail 2% TIM 19% Wholesale & Retail 4% Services 41% Services 35% Wholesale & Retail 9% Services 27% Primary & Energy 19% TIM 29% 17

19 Exits by Sector (by Investment Cost) Since Inception to End 2010 Pharma & Medical 4% Agriculture & Forestry 2% 2010 Services 13% Pharma & Medical 1% TIM 5% Agriculture & Forestry 1% Construction 5% Primary & Energy 5% TIM 30% Consumer 13% Wholesale & Retail 54% Manufacturing 10% 2009 Manufacturing 13% Wholesale & Retail 7% Consumer 7% Wholesale & Retail 13% Services 15% Consumer 16% Manufacturing 9% Construction 10% TIM 30% Services 16% Primary & Energy 21% 18

20 Investments by Fund Stage Over Time EUR Millions, Investment Cost Buyout Growth / Expansion Other Seed/Early Note: EBRD tracked portfolio only; Data as of end

21 Exits by Fund Stage Over Time 1000 EUR Millions, Proceeds Buyout Growth / Expansion Other Seed/Early Note: EBRD tracked portfolio only; Data as of end of Only Fully Realized Transactions excluding Write-Offs 20

22 LP Data 21

23 Investor by Type Trends 100% 80% 16% 17% 14% 4% 60% 40% 31% 8% 64% 20% 0% 18% 12% 11% Pension Fund Banks & Insurance Corporate Investor IFIs & Government Agencies Other Fund of Funds 2% Note: EBRD tracked Portfolio only. Includes EBRD (in IFI/Govt), excludes Property Funds. 22

24 Investors by Origin Over Time Commitment EUR Millions 3,000 2,500 2,000 1,500 1, Europe Other USA EBRD Vintage Year Note: EBRD tracked portfolio, CSE and CIS funds. 23

25 Funds Jurisdiction Breakdown - By Country 25.0% % 15.0% 10.0% 5.0% % Note: EBRD tracked portfolio only. Data to end *Others Includes: France, Greece, Ireland, Mauritius, Russian Federation, Spain, Sweden, Turkey, Ukraine % Overall No. of Funds No. of Funds United Kingdom USA Jersey Guernsey Cayman Islands Netherlands Others Luxembourg Poland Bermuda Cyprus Germany Isle Of Man Kazakhstan

26 2010 PE Investment as a % of GDP * Baltic Countries: include: Estonia, Latvia, Lithuania Source: EVCA/PEREP Analytics, RVCA and EBRD Estimates % 0.9% 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Hungary Sweden United Kingdom Norway Ireland France Netherlands Finland Switzerland Europe Spain Belgium Austria Bulgaria Luxembourg Poland Germany Denmark Czech Republic Portugal Italy Romania Ukraine Baltic countries* Other CEE Greece Russia (2009) Turkey

27 General Information 26

28 EBRD Database Best available sample of PE performance in central and south east Europe (CSE), Russia and CIS Tracks all gross investments made by a basket of EBRD invested funds as well as net returns to EBRD ( tracked portfolio ) Measured in both EUR and USD* Obligatory reporting by fund managers, analysed by EBRD reflects comprehensive performance No survivor bias resulting from only best fund managers reporting * Bloomberg exchange rate used as of date of signing (commitments), transaction date (cash flows) or valuation date (NAV) 27

29 Definitions EBRD Sponsored Funds funds established at EBRD's initiative in countries where no private sector funding was available for private equity funds. These funds are supported with significant donor grants, and EBRD investment represents usually over 90% of fund capital. Institutional Quality Funds (IQs) identified based on criteria established by Cambridge Associates. These include the characteristics of the investors in the fund, fund size relative to peers, and availability of data. Survivor Funds funds managed by managers who have raised or are expected to raise a follow-on fund. 28

30 EBRD Region CSE Countries Albania, Bosnia & Herzegovina, Bulgaria, Croatia, Estonia, FYR Macedonia, Hungary, Latvia, Lithuania, Kosovo Poland, Montenegro, Romania, Slovak Republic, Serbia, Slovenia, Turkey. CIS Countries Armenia*, Azerbaijan, Belarus*, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russian Federation, Tajikistan*, Turkmenistan, Uzbekistan*, Ukraine and Mongolia. * There are no fund sub-investments in these countries as of end Note: Czech Republic ceased to be a country of operation in

31 Copyright 2011 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 2011 European Bank for Reconstruction and Development. All rights reserved. 30