January 2008

Private Equity

Central European
Private Equity Confidence Survey

Central European - Private Equity Confidence Survey

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Central European - Private Equity Confidence Survey

Introduction
Welcome to the tenth edition of our Deloitte Central Europe Private Equity Confidence Survey which we have been running since March 2003. After hitting an all-time high in summer 2007, in October our Private Equity Confidence Index saw an expected downturn with sentiments following activity and market conditions corresponding with global developments in major Private Equity markets. Global Mergers & Acquisitions activity exceeded its 2006 annual figure of USD 3.55 trillion by the end of October 2007, but deals activity was significantly depressed by financial market developments during late summer. The results in this publication are based on a survey started in October 2007 and are therefore slightly out of date going to print. In the past few months we have noted a resurgence in enquiries for M&A Transaction Services from private equity funds though it is also evident that banks are being more cautious and attentive to diligencing buy-out opportunities. We have noted an increase in interest in deals from funds who have not been regular participants in Central Europe. For example, we advised Blackstone on their acquisition of Lattelecom in September 2007 and most recently advised Columbia Capital, M/C Venture Partners and Innova on their buy-out of the regional telco, GTS Central Europe. Also of note is that Carlyle, Bridgepoint and 3i have all recently put teams in place focussed on Central Europe. Overall we expect this to lead to more competition amongst funds and increasing deal sizes. With the pipeline of deals in the region we can expect another successful year in 2008. Privatisation of national airlines and airports throughout the region (e.g. Prague airport) and continuing privatisation of national incumbent telecommunications providers (e.g. Slovenian Telekom and BH Telecom) are pending or already running. Let me wish you a Happy New Year and plenty of successful deals in 2008.

Garret Byrne Partner, M&A Transaction Services Leader, Central Europe January 2008

Central European - Private Equity Confidence Survey

Overview
Key findings

PE CE Index:
144 138 142 131 134 146 142

Confidence decreased in line with global markets Economic climate and availability of debt finance reached all time lows Market activity, size of transactions and focus of investors expectations remain the same Lower amount of new funds and syndicated deals should be expected in the next six months

150 140 130 120 110 100 90 80 Mar. 2003

144

100

104

PE CE Index
The Deloitte Private Equity Confidence Index dropped off as expected in line with global sentiment following the reassessment of risk as a result of the sub-prime mortgage situation in the U.S.

Sep. 2003

Mar. 2004

Sep. 2004

Mar. 2005

Sep. 2005

Mar. 2006

Oct. 2006

Apr. Oct. 2007 2007

80 70

90 80 70 60 50 40 30 20 10 0

Deloitte Private Equity Confidence Index 40

60 50 30

The confidence index is based upon answers received from 20 private equity professionals focused on Central Europe. It is 10 composed from answers to the first seven questions of the 0 ten question survey. For each period the average of positive answer ratios over the sum of positive and negative answers is computed. This 100 average is compared to the base period, which in our case 90 spring 2003. is
80 70 60 50 40 30 20 10 0

80 70 60 50 40 30 20 10 0

80 70 60 50 40 30 20 10 0

80 70 60 50 40 30 20 10 0

80 70 80

150 140 130 120 110 100 90

150 140 130 120 110

Central European - Private Equity Confidence Survey

100 Survey results 90

Economic climate 80 80
For this period, I expect the overall economic climate to:
150

Debt finance
For this period, I expect availability of debt finance to:

80 140 70 130 60 53% 120 50 110 37% 40 100 30 20 90 10 80 0

80 70 60 50 40 30 20
31% 36% 26% 26% 69% 70% 69% 64%

74%

74% 64%

90 80 70 60 50 40
18% 18%

90 80 70 60 50 40 30 20 10 0
11% 0% 0% 4% 0% 0% 0% 47% 42% 52% 48% 33% 67% 60% 50% 46% 40% 38% 39% 33% 62% 61% 67%

84%

56% 44%

53% 47%

46% 36% 18%

26% 13% 13%

30 20 10 0

10%

10 0

16% 0%

0%

4%

4%

0%

0%

0%

0%

0%

Mar. Sep. Mar. Sep. Mar. Sep. Mar. Oct. Apr. Oct. 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007
80 70 90 80 100 60 Improve 100 Remain the same Decline 70 80 90 90 60 50 80 70 80 After two years of very strong confidence in Central European 50 40 70 70 countries economies, some respondents suggested a decline in 40 60 60 30 60 economic activity. 50 30 50 20 50 20 40 40 10 40 10 Investors focus 30 30 30 0 0 20 20 20 For this10 week, I expect to spend the majority of my time 10 10 0 focusing0on: 0 100 90 80 70 60
74% 80% 88% 77% 86%

Mar. Sep. 2003 2003

Mar. Sep. Mar. Sep. Mar. Oct. Apr. 2004 2004 2005 2005 2006 2006 2007

Oct. 2007

Improve 80

Remain the same

Decline

A sharp decline in expectations on the availability of debt 70 finance suggests a strong correlation between Central European 60 markets and global developments. 50
40 30

Vendor Due Diligence 10

0

20

80
79% 77%

80 70

80
53%

69%

80 70

70 60 50 40 30 20 10 0

70 60 50 30% 40
24% 50% 31% 22% 4% 19% 17% 16% 12% 7% 12% 8% 6% 7% 5% 0% 14% 9%

60 50 50 40 30 40 20 17% 30 10 20 0 10 0

60 50 40 30 20 10 0

In line with recent developments and trends towards auction sales, many sellers consider undertaking Vendor Due Diligence (VDD) prior to the bidding process. The main aim of VDD is 80 to shorten the time period between the start and completion 70 of the deal and provide a more competitive process especially 60 where Private Equity funds are being targeted. It also allows 50 vendors to deal with issues in advance rather than at the 40 negotiation table.
30

30 7%

20 Mar. Sep. 10 2003 2003 0

Mar. Sep. Mar. Sep. Mar. Oct. Apr. Oct. 2004 2004 2005 2005 2006 2006 2007 2007

VDD 20
0

now forms a vital part of the transaction services offered by advisory firms. 10 We were recently pleased to have carried out VDD on NetCentrum which was recently acquired by Warburg Pincus.

80 Raising new funds 80 80 70 60 60 50 50 40

Portfolio Management

New investments

80 70

New investments are still the primary focus of fund managers. 70 70

60 50 40 30 20 10 0
80 70 60 50 40 30 20 10

80 60 70 50 60 40
30 50 20 40 10 30 0 20

80 70 60 50 40 30 20 10 0

40 30 30 20 20 10 10 0 0

10 0
80 70 60 50 40 30 20

90 80

10 0

70 80 60 50
80 30 70 20 60 10

80

10 80 0 70
90 80 70 60 50 40 30 20 10 0

80 70 60 50 40 30 20 10 0
80% 67% 52% 38% 32% 22% 10% 11% 0% 23% 23% 25% 13% 6% 13% 7% 26% 54% 68% 62% 50% 44% 27% 68% 64%

Central European - Private Equity Confidence Survey 70 40

60

80

60 50
90 80 70 60 50 40 30 20

100 90 80 60 40 30 20
68%

50 40 30

40 30 80 20 70 10 60 40 30 80 20 70 10 60 0 50 40 30

20 0 50 Size of transactions 70

40 30 20 10 80 0 70

10 0

Investors activities
0 this For50 period, I expect to:

For this period, I expect the average size of transactions to: 50

100 90 80 70 60 50 40 30 20 10 0 80

10 0

10 0
57% 40%

72% 64% 56% 50% 44% 36% 28% 56% 53% 40% 58% 42% 27%

70 60 50 40 30 20 10 0

80 70 60 50 40 30 20 10 0

60 50 40 100
90 30 80 20

52%

42% 32% 26%

37% 38%

80
21% 70

80 70 60 50 40 30 20 10 0

80 20 70 10 60 0 50 40 30 20

6%

9%

70 11% 10 60 0 50 40 Mar. 2003 30

60 50
3% 80
70

11%

12%

8% 0% 0%

7% 0%

9%
80 70

Mar. Sep. Mar. Sep. Mar. 2003 2003 2004 2004 2005

Sep. Mar. Oct. Apr. Oct. 2005 2006 2006 2007 2007 Sell more

40 Sep. 2003 30

Mar. 60
40

Sep. Mar. Sep. Mar. 2004 2004 2005 2005 2006 50

Oct. Apr. Oct. 60 2006 2007 2007

50 40 30 20 10 0

Buy more

Buy and sell equally

20 Increase Remain the same 20 30 80 10 10 20 0 Market activity10 70 0

Decrease

New investments competition 10

For this period, I expect the highest competition for new investment opportunities in:
80 70 60 50 40 30 20 10 0
7% 0% 0% 0% 0% 0% 7% 0% 0% 56% 44% 35% 65% 60% 69% 61% 53% 40% 31% 39% 40% 53% 53% 53% 47% 47% 40% 32% 68%

60 50

90 70 50 40

80 For this period, I expect the overall market activity to:

80 70 60 50 40 30
31% 74%

80 70 60 50 40 30 20 10 0 80 70

40 80 60 30 70 20 60

80 70 60 50 40 30 20 10

62% 52% 48% 38% 56% 44% 56%

64% 58%

60 50 40 30 20

10 50 20 0 40 10
30 0 20

3053%

56% 44%

47%47% 44% 37% 27%

2026%

10 0

16%10

80 70 60 50 40 30

10 0

0
0% 0% 0% 0% 0% 0%

9% 6% 5%

80 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 70 80 60 70Increase 50 60

Mar.

Sep. Mar.

Sep.

Mar.

Sep.

Mar.

Oct.

Apr.

Oct.

Mar. 2004

Sep. 2004

Mar. 2005

Sep. 2005

Mar. 2006

Oct. Oct. Apr. Apr. Oct. 2006 2006 2007 2007 2007 Market leaders

Remain the same

Decrease

80 70 60 50 40 30 20 10 0
59%

80 Start ups 70

Middle size growing Co.

40 50 Contradictory to overall economic climate and debt availability, 20 30 40 private equity market activity is expected to stay the same.

60 Raising of new funds 50 40 For this period, I expect raising new funds to be: 30

Investments efficiency 0 10
20 10 For this period, I expect efficiency of my financial investments to: 0
80

10

30

20

100

20 10
70% 81% 68%

80 70 60 50 40 30 20 10 0
31% 16% 2% 80 53% 57% 41% 30%

70 60

77% 68% 69% 61% 67%

79%

80 0 60 40

63%

50 40 30 20 10 0

23% 7% 0%

31% 28%

33%

33% 21%

32%

20
9%

19%

23%

100
Mar. 2004 Less difficult

11%

13% 6%

9%

4%

0%

6%

0%

0%

Mar. Sep.70 Mar. Sep. Mar. Sep. Mar. Oct. Apr. Oct. 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 60
50

80 Remain

Sep. 2005 More difficult

Oct. 2007

80 Improve 70 60

40 30 20 10 0

Remain the same

Decline

After the heydays of 60 and 2007, fund managers are more 2006 cautious in their expectations regarding their fundraising activities.

50 40 30 20

100 80
100

40 20

06
50 40

Syndicated deals
For this period I expect the volume of syndicated deals to (Mar. 2005):
4%

56%

Compared to results from spring 2005, fund managers expect to be less willing to conclude syndicated deals in the next six months. 001 This may be a result of a desire to have less exposure to decisions by others following the recent developments in the debt market. Fund raising
0 80 70 60

Company BaltCap

Fund
20 10

Krokus

Nova Polonia Natexis II

100

closed

June 2007

Fund was closed on hard cap of EUR 100m with initial target of EUR 75m.
10 0

CertAsig Gulliver Group Provus Service Provider SA

Romania Hungary Romania

Royalton Partners KBC Private Equity Turkven Private Equity Columbia Capital, M/C Venture Partners, Innova Capital Enterprise Investors

Dec 2007 Dec 2007 Dec 2007 Dec 2007

n/a n/a n/a n/a

95%

Through its second fund Royalton Capital Invesors II, Royalton invested in Romania based insurance company focused on property insurance. KBC Private Equity acquired Hungarian toys distributor from private individuals. Turkish based private equity house acquired stake in Romanian operations of Provus Bilisim Hizmetleri A.S. (payment processing company) as part of its acquisition of Provus. A consortium of Columbia Capital, M/C Venture Partners and Innova Capital acquired telecommunication services provider with operations in Poland, Czech Republic, Slovakia, Hungary and Romania. Deal is to be completed in first quarter of 2008.

GTS Central Europe Central Europe STD Slovakia, s.r.o. and Donivo MKD, s.r.o. Slovakia

n/a

80

70

60

50

40

30

20

10

Dec 2007

23,0

75%

80

70%

70

n/a

Enterprise Investors assisted management of Slovakia based transportation companies in MBO by contributing EUR 23m. Total consideration for both companies was EUR 34m. Transaction is subject to regulatory approval.

50

40

Company

Country

PE House

Period

Value m EUR

Stake

Description

30

20

60

50

40

30

20

10

Major investments

10

80

70

The Riverside Company

Riverside Europe Fund III

315

closed

July 2007

REF III fund was closed above its EUR 250m target. It will focus on smaller and middle market companies based mostly in Central Europe.

90 80

70

60 50

60

50

40

Darby Overseas Investments

Darby Converging Europe Mezzanine Fund

313

closed

August 2007

Darby closed its new fund to new investors at EUR 248m. The remaining EUR 65m is from expected refinancing of bridge loan. Fund investments will focus on mezzanine loans to companies based in new EU member countries

40 30

30

20

10

Pamplona

Pamplona Capital partners II

1 300

first closing

September 2007

Second private equity fund of Pamplona held its first closing on EUR 1.3bn. It will continue to focus on LBO opportunities throughout Europe.

20 10

80

ALPHA Associates ALPHA CEE II

309

closed

October 2007

Swiss based private equity fund closed its second Central European focused fund above its EUR 300m target. First closing was held in August 2006 at EUR 109m. It stated that it will co-invest alongside some funds in its portfolio.

80

70

60

70

60

50

Mid Europa

Mid Europa Fund III

1 500

closed

October 2007

Third Central European focused private equity group fund had an initial target at EUR 1.25bn and was launched in May 2007. Mid Europa focuses on investments of EUR 50-250m with enterprise value of up to EUR 1bn.

50

40

30

BaltCap Private Equity Fund

40 30

58

first closing

December 2007

First fund of BaltCap held its first closing with target of raising EUR 100m. Fund will primarily focus on investment in Baltic states and other Central European countries.

20

Value (EUR m)

Status

Time

Description

10

50

40

30

20

Increase

Remain the same

Decrease

10

80

70

60

30

05 04

Central European - Private Equity Confidence Survey

03 02 01 0

For this period I expect the volume of syndicated deals to (Oct. 2007):

27%

40%

9% 64%

Increase

Decrease

Remain the same

08 06 04 02 0

Central European - Private Equity Confidence Survey Major investments - continued

Company Tesla, a.s. KAI Group Gaz Sud S.A. NetCentrum Country Czech Republic Bulgaria Romania Czech Republic Lithuania Estonia Poland PE House Kilcullen Kapital Partners Advent International PPF Investments Warburg Pincus Period Dec 2007 Dec 2007 Dec 2007 Dec 2007 Value m EUR n/a n/a n/a n/a Stake 97% 70% 100% n/a Description Kilcullen acquired majority stake in traditional Czech electro-technical equipment producer. Advent entered Bulgaria based manufacturer of interior and exterior floor, wall and decorative ceramic tiles. KAI operates its own mining and transportation companies. PPF Investments, through it's Cyprus based SPV Ligatne, acquired independent gas distributor in Romania which offers its services in Bucharest surrounding area. Warburg Pincus acquired NetCentrum, Czech Republic's second largest internet company and operator of Centrum.cz web information and email portal. Although deal details were not disclosed, estimated enterprise value is EUR 100m. Enterprise Investors entered in Lithuanian tour operator. Entry multiple paid for majority stake was 0.6 on 2006 consolidated sales. CV Keskus, Estonia based e-recruitment company, was acquired by Tiger Global Management LLC. Bridgepoint Capital Limited acquired CTL Logistics S. A., Poland based transportation logistics company operating 660km of tracks, almost 5,000 strong fleet of wagons and several terminals. World Vision Group sold CAPA Finance IFN SA, a Romania microfinance company, to Romanian American Enterprise Fund (RAEF). Amber Thust SCA aquired AT Toode, Estonia based metal roofing and piping systems producer. Polish financial consultancy firm, insurance broker and subsidiary of GE Money was acquired for consideration of EUR 115.25m. Swiss based private equity firm acquired 51% stake in Romanian system integrator and maintenance provider and IT consultancy company via its subsidiary ACP Holding GmbH. Revenues of the target were approximately EUR 12m in 2006. Zipp, a polish scooters manufacturer, was acquired by its management (10%) in MBO backed by KBC Private Equity. 3i acquired Gemerska Mliekaren via its subsidiary Senoble Group (French based dairy producer). Revenues of Gemerska Mliekaren in 2006 were EUR 23m. Deals antimonopoly approval is pending. Mlekara Bitola (Macedonian dairy company) was acquired by Salford portfolio company, Danube Foods Group, for consideration of EUR 26.8m. Vienna Capital Partners acquired 610,000 outstanding shares of listed Moldova based bank from Bank Petrocommerce OJSC. According to agreement Vienna capital will pay 23.98 EUR per share. Alta Capital Partners acquired sugar and confectionery, dairy and baked goods producers from AS Kalev. Deal is pending upon approval of Estonian and Latvian competition boards and shareholders of Kalev. Blackstone backed the MBO of Lattelecom. Entry multiple was 5x EBITDA. OneMed Group Oy, the Finnish provider of healthcare and laboratory products and a portfolio of CapMan Group, acquired Hand-Prod, the Poland based wholesaler of healthcare products. Penta Investment acquired a majority stake in Novoker, the Slovakia based tiles manufacturer, from Bloomsbury Pacific Slovakia. Oleofin, financing vehicle and Setuza, leading producer of vegetable oils and biodiesel were acquired by PPF Investments in cooperation with Via Chem Group. Sigma Bleyzer, a Ukraine based PE firm, acquired SC Covalact, a Romania based producer of dairy products. Implied enterprise value was EUR 10m and entry multiple was 0.7x revenues. Capital International, via its subsidiary Lode Holdings Ltd, acquired Lode A/S, the listed Latvia based ceramic building materials manufacturer. Entry multiples were 2.7x revenue, 9.3x EBITDA, 10.3x earnings. Centrum Filmowe Helios SA, a portfolio company of Krokus PE, acquired Kinoplex Sp Zoo, a Poland based cinema chain. Romprest Service, a Romania based company providing cleaning and sanitation services, was acquired from Detaco LLC. Detaco will retain a 60% share. DBG Eastern Europe II LP backed Mr. Stemberger, Slovenian private investor, in MBI acquisition of Tomplast, Slovenian manufacturer of plastic moulded components. Petroflax SA, Romania based producer of foam-based products was acquired by AEA Investors subsidiary, Pregis Corp. Entry multiple was 1.3x revenues. MCE Industrietechnik, a portfolio company of Deutsche Beteiligungs, the German PE firm, and Andlinger & Company, the US based PE firm, acquired Montex AS, the Slovakia based industrial installation and maintenance company. Fama Bulgaria, Bulgarian dairy producer was acquired by a Spanish based private equity fund in an MBI transaction. Expected revenues for 2007 are EUR 20m giving expected multiple of 0.4x revenues. KD Group, the Slovenia based PE arm of KD Group, has agreed to acquire remaining 59.99% of NAMA DD (departmental stores operator) shares and increase its stake to 99.99%. Via its Swedish portfolio company, Candover acquired Czech based producer of mattress and bed related products.

Novaturas UAB CV Keskus CTL Logistics S.A.

Enterprise Investors Tiger Global Management LLC Bridgepoint Capital Limited Romanian American Enterprise Fund Amber Trust II SCA Innova Capital Capvis Equity Partners AG KBC Private Equity 3i Group plc.

Nov 2007 Nov 2007 Nov 2007

40,0 8,9 n/a

n/a 75% n/a

CAPA Finance IFN S.A. A.S. Toode Expander Sp. z.o.o. on line Datasysteme Romania SRL Zipp Sp.z.o.o. Gemerska Mliekaren, s.r.o. Mlekara Bitola Unibank S.A.

Romania Estonia Poland Romania

Nov 2007 Nov 2007 Nov 2007 Oct 2007

15,0 n/a 115,3 n/a

97% 50% 60% 51%

Poland Slovakia

Oct 2007 Oct 2007

n/a n/a

90% 100%

Macedonia Moldova

Salford Capital Partners Vienna Capital Partners Alta Capital Partners

Oct 2007 Sep 2007

26,8 14,6

75% n/a

A.S. Kalev

Estonia

Sep 2007

n/a

n/a

Lattelecom SIA HAND-PROD sp.z

Latvia Poland

Blackstone Group Holdings LLC OneMed Group Oy

Sep 2007 Sep 2007

424,8 n/a

51% 75%

Novoker a.s. Oleofin a.s., Setuza a.s. SC Covalact

Slovakia Czech Republic Romania

Penta Investment a.s. PPF Investments Sigma Bleyzer

Aug 2007 n/a Aug 2007 n/a Aug 2007 7,0

n/a 50% 70%

Lode A/S

Latvia

Capital International

July 2007

23,7

83%

Kinoplex Sp Zoo Romprest Service S.A. Tomplast d.o.o. Petroflax S.A. Montex A.S.

Poland Romania Slovenia Romania Slovakia

Krokus Private Equity 3i Group plc DBG Eastern Europe AEA Investors Andlinger & Company; Deutsche Beteiligungs AG GED Eastern Fund II

July 2007 July 2007 July 2007 July 2007 July 2007

n/a 9,0 n/a 8,8 n/a

n/a 30% n/a n/a n/a

Fama Bulgaria

Bulgaria

June 2007 June 2007

7,5

100%

NAMA DD

Slovenia

KD Group DD

15,7

60%

Tropico Plus CZ

Czech Republic

Candover Investments June plc. 2007

n/a

n/a

Central European - Private Equity Confidence Survey Major exits

Company
Sonex Group Holding UAB

Country Seller
Lithuania Askembla Asset Management

Buyer
Ementor ASA

Date
Dec 2007

Value Stake m EUR

22,0 100%

Description
Swedish private equity company exited it's investment in company providing IT infrastructure solutions based in Lithuania. Completion of the transaction is subject to approval of competition authorities. Tolkenar (Cyprus based private equity fund) exited Polish outsourcing company via sale to industry peer. CVCI exited Lithuanian food retailer. Total transaction value was EUR 300m as Coopernic alliance acquired 80% of the equity, giving 2.25x return on CVCI initial investment of EUR 50m in 2005 and 0.76x implied revenues multiple on 2006 sales (EUR 492m). PPF Investments Ltd sold Vegacom A.S. Czech - supplier of information and communication services to Eltodo, also Czech based electrical engineering company. Transaction is subject to approval of Czech and Slovak antitrust offices. Nordkapp Equity Partners exited its investment in Dlugie Rozmowy, Polish telecom company. Exit multiples were 0.4x Revenues, 6.9x EBITDA and 11.6x Earnings. Jitka A.S., Czech manufacturer of cotton and mixture fabrics was aquired by Volga Textile Company, Russian textile company. Seller was Czech private equity firm Jet Investment A.S. Enterprise Investors exited Romania based supermarket operator for consideration of EUR 55m giving investment multiple 3.2x initial investment. Revenues exit multiple was 0.7x. AIG-New Europe Fund sold JetFinance International, Bulgarian provider of consumer credit services, to Cetelem SA (a subsidiary of BNP Paribas). Transaction is subject to approval of antimonopoly authorities. Medycyna Rodzinna, a Polish healthcare provider, was acquired from Enterprise Investors. Entry multiple was 1.2x revenue. Enterprise investors acquired initial stake of 90% in 2000 for consideration of USD 10m giving exit multiple of 1.45. Romanian-American Enterprise Fund together with other investors exited Domo Retail, Romania based electronics goods retailer. Secondary buyout was led by Equest Partners Ltd. Accession Mezzanine and its co-investors (Cornerstone and Deutsche Investitions- und Entwicklungsgesellschaft) exited Polish medical clinics operator.

Call Center Poland UAB Palink ("Iki Group")

Poland Lithuania

Tolkenar Limited City Venture Capital International

Internet Group SA Coopernic alliance (Coop Schweiz; Colruyt Group; Conad; E.Leclerc and REWE Group) Eltodo

Dec 2007 Nov 2007

35,6 112,5

100% 30%

Vegacom A.S.

Czech Republic

PPF Investments Ltd.

Nov 2007

7,5

n/a

Dlugie Rozmowy S.A.

Poland

Nordkapp Equity Partners Jet Investment A. S.

PPWK im. E. Romera Nov2007 S. A. Volga Textile Company (VTK) Nov 2007

9,5

25%

Jitka A.S.

Czech Republic

10,0

n/a

Artima S.A.

Romania

Enterprise Investors

Carrefour Romania

Oct2007

55,0

100%

JetFinance International Ltd.

Bulgaria

AIG - New Europe Fund

Cetelem SA

Sep 2007

n/a

n/a

Medycyna Rodzinna SA

Poland

Enterprise Investors

Mid Europa Partners

July 2007

15,7

94%

Domo Retail S.A

Romania

RAEF

Equest Partners Ltd.

July 2007

n/a

100%

Lux-Med Sp.z.o.o.

Poland

Accession Mezzanine Capital; Cornerstone Partners Bedminster Capital Management com.Investment Ltd.

Mid Europa Partners

July 2007

n/a

n/a

SBB Srpske Kablovkse Mreze

Serbia

Mid Europa Partners

June 2007

170,0

n/a

Bedminster Capital exited its investment of SouthEastern Europe Fund I in Serbian cable TV and broadband internet provider. Consideration was approximately EUR 170m giving estimated multiple of 6.2x EBITDA. Com.Investment, a Polish venture capital fund, sold Telestar, a Polish venture capital fund, to MNI SA, a listed Polish telecommunication company. Exit multiples were 0.7x revenue and 4.5x earnings. ZetCOM, a Latvian operator of mobile services, was acquired by Latvijas Mobilais telefons from Baltic SME Fund, an Estonia based PE firm, and private investors Nil Aleksa, Uldis Zikmanis, Guntar Pashkevich. Exit multiple was 0.6x revenue and 4.6x earnings. US based private equity exited with its co-investor South Bay Ltd, Polish producer of modular and steel structures. Exit multiples were 0.9x revenues, 5.8x EBITDA and 9.7x net earnings. Regent Finance Ltd. sold Ljubljanski kabel, a Slovenia based internet and cable services provider, to UPC Telemach, a Slovenia based cable operator.

Telestar Sp.z.o.o.

Poland

MNI SA

June 2007

5,5

n/a

ZetCOM

Latvia

Baltic SME fund

Latvijas Moilais telfons SIA

June 2007

7,1

15%

Metalplast-System Sp.z.o.o.

Poland

Tar Heel Capital

FAM Technika Odlewicza

June 2007

11,6

100%

Ljubljanski kabel

Slovenia

Regent Finance Ltd.

UPC Telemach

June 2007

10,0

67%

Central European - Private Equity Confidence Survey

Private Equity Regional contacts

Garret Byrne Krzysztof Moczulski lain Child Graeme Hutchison Wladyslaw Szwoch M&A Transaction Services Leader Tax M&A, Regional Service Line Leader Regional Managing Partner, Financial Advisory Debt Advisory, Regional Service Line Leader Commercial Due Diligence Service Line Leader +420 246 042 339 +48 22 511 0504 +421 2 582 49 112 +48 22 511 00 29 +48 22 511 09 17 gbyrne@deloitteCE.com kmoczulski@deloitteCE.com ichild@deloitteCE.com ghutchison@deloitteCE.com wlszwoch@deloitteCE.com

Corporate Finance Regional Sector Team contacts

Sector Energy and Resources Consumer Business (Food & beverage and retail) Financial Services Healthcare and Pharmaceuticals Technology, Media & Telecomunications Aviation and Transport Real Estate and Construction Leader Wojciech Hann Bela Seres Andras Fulop Bertalan Jaszkuti Peter Karli Martin Iltis Kurt Werth, Dalibor Hlavac Number +48 22 511 00 26 +36 1 428 6936 +36 1 428 6937 +36 1 428 6941 +36 1 428 6718 +420 246 042 784 +420 246 042 368 +420 246 042 235 Email whann@deloitteCE.com bseres@deloitteCE.com afulop@deloitteCE.com bjaszkuti@deloitteCE.com pkarli@deloitteCE.com miltis@deloitteCE.com kwerth@deloitteCE.com dhlavac@deloitteCE.com

Industry contacts
Industry Financial Services Industry Energy and Resources Technology, Media and Telecommunications Leader Mike Jennings Vladimir Vanek Dariusz Nachyla Number +420 246 042 576 +420 246 042 361 +48 22 511 0631 Email mijennings@deloitteCE.com vvanek@deloitteCE.com dnachyla@deloitteCE.com

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Central European - Private Equity Confidence Survey

Country contacts
Adria (Bosnia-Herzegovina, Croatia, Slovenia) Francois Swanepoel Gerald Lambert Vladimir Milosevic M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +385 1 2351 920 +385 1 2351 944 +385 1 2351 934 frswanepoel@deloitteCE.com glambert@deloitteCE.com vmilosevic@deloitteCE.com

Balkans (Albania, Bulgaria, Kosovo, Moldova, Romania) Hein van Dam Rodica Segarceanu Maksim Caslli M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +40 21 222 1661 +40 21 222 1661 +40 21 222 1661 hvandam@deloitteCE.com rsegarceanu@deloitteCE.com mcaslli@deloitteCE.com

Baltics (Estonia, Latvia, Lithuania) Gavin Hill Igor Rodin Linas Galvele Czech Republic Garret Byrne Miroslav Svoboda Iain Child Hungary Andras Fulop Petr Oszko Bela Seres Poland Gavin Hill Krzysztof Moczulski Wojciech Roman M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +48 225 110 786 +48 225 110 504 +48 225 110 871 gahill@deloitteCE.com kmoczulski@deloitteCE.com wroman@deloitteCE.com M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +36 1 428 6937 +36 1 428 6768 +36 1 428 6936 afulop@delotteCE.com poszko@deloitteCE.com bseres@deloitteCE.com M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +420 246 042 339 +420 246 042 924 +420 246 042 362 gbyrne@deloitteCE.com msvoboda@deloitteCE.com ichild@deloitteCE.com M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +48 225 110 786 +371 67074101 +370 5255 3022 gahill@deloitteCE.com irodin@deloittece.com lgalvele@deloitteCE.com

Serbia, Montenegro, Macedonia Maja Mijovic Srdjan Petrovic Vladimir Poznanic Slovakia Garret Byrne Steve Gawronski Iain Child M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +420 246 042 339 +421 2 582 49 167 +421 2 582 49 112 gbyrne@deloitteCE.com sgawronski@deloitteCE.com ichild@deloitteCE.com M&A Transaction Services Leader Tax M&A Transaction Services Leader Financial Advisory Leader +381 11 361 3457 +381 11 361 2524 +381 11 361 3457 mmijovic@deloitteCE.com spetrovic@deloitteCE.com vpoznanic@deloitteCE.com

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