Performance of EBRD Private Equity Funds Portfolio Data to 31 st December 2010 0
Portfolio Overview 1
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
EBRD Commitments Over Time 400 350 11 12 11 11 13 14 12 EUR Millions 300 250 200 150 100 50 2 4 6 7 6 4 5 4 4 5 9 5 6 9 10 8 6 4 2 No of Funds - 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Vintage Year 0 CEE CIS SEE Number of Funds 3
Fund Raising Vs Investments 3,000 74% 2,500 EUR Millions 2,000 1,500 1,000 500 30% 23% 34% 59% 28% 24% 22% 27% 20% 42% 29% 14% 14% 14% 13% 11% 20% 28% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Commitments Raised by EBRD Funds by Year Annual Investments EBRD Commitment as % Of Total Fund Capital 4
EBRD Commitment by Fund Stage EUR Millions 10,000 8,000 6,000 4,000 2,000 - EBRD Portfolio 8 109 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 1,000 8 70 Buyout Growth / Expansion 39 7 5 Other 3 1 Seed / Start-up Growth / Expansion Other Seed / Start-up 5
EBRD Commitment by Fund Size EUR Millions EBRD Portfolio 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500-22 44% 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 2010 40 26% 15 17% 7 4 14% 6% 0-20 20-50 50-150 150-300 300-500 500+ EUR Millions CSE Region Russia/CIS Region EUR Millions 3,000 2,500 2,000 1,500 1,000 500 - - 2,000 1,500 1,000 500 18 26 30 9 23% 32% 4 3 43% 23% 7% 15% 0-20 20-50 50-150 150-300 300-500 500+ 19 EUR Millions 10 66% 4 6 35% 3 44% 18% 1 13% 3% 0-20 20-50 50-150 150-300 300-500 500+ EUR Millions 6
EBRD Number of Investments and Exits Transactions 150 100 50 EBRD Portfolio CSE Region Transactions 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Russia/CIS Region 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Investments Exits WOs Note: Data as of end 2010 Transactions 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 7
Holding Period by Investment Vintage Years 8 7 6 5 4 3 2 1 EBRD Portfolio CSE Region Russia/CIS Region 7.2 5.3 6.4 6.3 5.7 5.6 Average Holding Period 5.5 5.0 4.5 4.3 2.8 Average Holding Period Average Holding Period 7 7.0 5.0 4.8 8 5.5 6.0 6.0 3.5 3.1 2.3 1.4 Years 8 6 5 4 3 2 1 4.3 5.8 5.0 5.5 5.0 4.6 4.4 3.0 3.5 2.9 2.0 1.3 Years 10 9 7 6 5 4 3 2 1 7.9 9.4 7.6 5.5 6.7 6.7 5.7 5.2 4.2 4.1 3.3 1.8 3.8 3.0 2.0 0 0 0 1993 1995 1997 1999 2001 2003 2005 2007 1993 1995 1997 1999 2001 2003 2005 2007 1993 1995 1997 1999 2001 2003 2005 2007 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
EBRD Returns 9
EBRD Net Horizon Returns: All Funds Returns as at December 31 2010 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 2009. *** Inception is consistent with 31.12.1992 10
EBRD Net Horizon Returns: Breakdown Returns as at Three Five Ten Since December 31 2010 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
Net Vintage Groups 3.50 3.00 2.50 2.00 Multiple 1.50 1.00 0.50 0.00 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 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
Gross Snapshot: All Regions 14,000 To End 2009 14,000 To End 2010 12,000 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 4,000 382 PR 2.60x 23.3% 987 4,000 479 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 2010 13
Portfolio Breakdown 14
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 2010 2009 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
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% 2010 2009 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
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% 2010 2009 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
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
Investments by Fund Stage Over Time EUR Millions, Investment Cost 800 600 400 200 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Buyout Growth / Expansion Other Seed/Early Note: EBRD tracked portfolio only; Data as of end 2010. 19
Exits by Fund Stage Over Time 1000 EUR Millions, Proceeds 800 600 400 200 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Buyout Growth / Expansion Other Seed/Early Note: EBRD tracked portfolio only; Data as of end of 2010. Only Fully Realized Transactions excluding Write-Offs 20
LP Data 21
Investor by Type Trends 100% 80% 16% 17% 14% 4% 60% 40% 31% 8% 64% 20% 0% 18% 12% 11% 1992-2009 2010 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
Investors by Origin Over Time Commitment EUR Millions 3,000 2,500 2,000 1,500 1,000 500 - Europe Other USA EBRD 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Vintage Year Note: EBRD tracked portfolio, CSE and CIS funds. 23
Funds Jurisdiction Breakdown - By Country 25.0% 26 20.0% 15.0% 10.0% 5.0% 21 17 15 14 10 9 5 5 3 2 2 2 2 0.0% Note: EBRD tracked portfolio only. Data to end 2010. *Others Includes: France, Greece, Ireland, Mauritius, Russian Federation, Spain, Sweden, Turkey, Ukraine 30 25 20 24 % Overall No. of Funds No. of Funds 15 10 5 0 United Kingdom USA Jersey Guernsey Cayman Islands Netherlands Others Luxembourg Poland Bermuda Cyprus Germany Isle Of Man Kazakhstan
2010 PE Investment as a % of GDP * Baltic Countries: include: Estonia, Latvia, Lithuania Source: EVCA/PEREP Analytics, RVCA and EBRD Estimates 25 0.775% 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
General Information 26
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
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
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 2010. Note: Czech Republic ceased to be a country of operation in 2007 29
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