www.pwc.

com

PwC CTI
Accelerating Russian companies to become global leaders
28 May 2012

 PwC

What is PwC?

158 countries Offices in 771 cities worldwide 419 Fortune 500

Active in

Worldwide gross revenues of PwCs network of firms increased in FY2011 USD

29.2

billion

companies are our clients

Over

168,000
employees

PwC

PwC in Russia

PwC first entered Russia in

1913 and reestablished its presence here in 1989 2,000 employees

Over

8 offices in Russia Moscow, St Petersburg,

Ekaterinburg, Kazan, Novosibirsk, Krasnodar, Yuzhno-Sakhalinsk, Vladikavkaz

For more than 20 years, Russian companies have benefited from our global knowledge and the professional experience of our people in Russia and abroad.

PwC

PwC CTI - Center for Technology and Innovation

Skolkovo and Institutes of development
Federal & local governments Start-ups

CTI

PwC CTI was founded in

2009
In October office at Digital October was opened

Venture Capital

State owned companies

2011

Multinationals

PwC

Our Mission
We believe this world is driven by entrepreneurs - bright people with a bold vision, high energy and strong determination to change the world by bringing innovative ideas to life
Our mission is to help young innovative companies achieve their vision and become technology market leaders, serving them as advisors through their early days to market success

PwC

CTI team

Natalia Milchakova

Tim Nicolle

Mark Hannye

Vasily Davydov, Tax

Tatiana Florina, Marketing

Anton Abashkin, CTI Advisory

Ekaterina Terentieva, CTI Assurance

Petr Babarykin, Legal

Ekaterina Shapochka, Consulting

Anna Akimova, Advisory

PwC

Olga Menshikova, Advisory Lyudmila Fedchenko, Advisory

Natalia Rodionova, Advisory

Yulia Eybogina, Advisory

Our Approach
Seed Grants, Angels Series A Round VC Series B-D VC, PE
IPO/Exit

Expansion, Growth
First market traction

Market Leadership

Idea, prototype

PwC CTI Offer:

Open Seminars PwC Startup Cloud

Growth program: Roadmap Mentorship Access to PwC Network

Emerging company services: Raising finance Developing business Accessing global markets Audit, tax and legal

Mature companies services: Audit, tax, legal Business Consulting Deals

PwC

www.pwcaccelerator.com

PwC Accelerator in Luxembourg Let us help you enter the Worlds Biggest Market

Agenda
1 2 3 4 Introduction to PwC's Accelerator Selection Criteria Why start from Luxembourg? Our Key People Appendix

PwC

PwCs Accelerator Mission statement

Assist fast growing companies address the European market without having it to spread its management too thin and without having it over investing its precious cash

PwC's Accelerator

Section 1

Introduction to PwC's Accelerator

PwC's Accelerator Dynamic Community

Methodology and competences (PwCs Accelerator & PwC Network)

Venture Capital firms

Corporates

(PwCs worldwide network)

Companies being accelerated by PwCs Accelerator

Role model entrepreneurs

Top Universities

PwC's Accelerator

PwCs Accelerator services

Corporate Structuring

Office Facilities Services International M&A

Fundraising at a global level

Team Building (HR Services)

International Development (International Sub setups)

PwC's Accelerator

In a nutshell, PwCs Accelerator offers Luxembourg as an entry point from which to radiate towards the rest of Europe Netherlands Scandinavia Baltic States
U.K. Germany France

Eastern Europe Mediterranean Countries Switzerland

Spain
Morocco

Italy

PwC

PwCs Accelerator a networking community

Content Local to Global Expo events Plug and Play events in Silicon Valley

Frequency

Opportunity to a floor of savvy followed possibly by one-toone meetings. Industry and market insight
One to One meeting with VCs, Corporate in Luxembourg Video conference with Silicon Valley

Semi-annually

Quarterly

Other PwCs Accelerator event

Key notes speakers on industry Lunch & Learn events, diner and cocktails, etc

Quarterly

All clients of PwCs Accelerator become a Member of our community. Membership gives access to a panel of events in order to favour business networking and provide thorough insight on industry hot topics

PwC's Accelerator

Section 2 Selection Criteria for PwCs Accelerator

PwCs Accelerator is focused on the Growth stage

6
Incubation Acceleration Maturity

Sales evolution

Concept

Technical Risk Stage

Market Market Traction Risk Stage (Growing Sales Pipeline)

Implementation Risk Stage (Extensive hiring, investments and International Expansion)

Stage of development

IPO or M&A

PwC's Accelerator

PwCs Accelerator Industrial Focus

Smart technologies

Ecotechnologies, Smart grid, Innovative energy, Innovative material and processes, etc.

Digital Life

Social networking, Gaming, Datanomics, Infrastructures, New Financial Services models, etc.

Mobility

Infrastructure & Telecoms, Software applications, Payment, Automotive technologies, etc.

Cloud Health and well being

PwC

Consumer internet, Enterprises 2.0, Data storage, SaaS, etc.

E-Health, Diagnostics, Bio IT, Medical device, etc.

PwCs Accelerator Company Characteristics

Obvious Need to be Accelerated Significant Sales Pipeline that now need to be executed Need to put feet on the ground and go sell the product/service Finance Looking for significant funding needs (typically from 10M to 25M) Looking for a geographically diversified capital structure Technology High differentiation of the technology and/or know-how (protected IP) Technology validated by large recognizable corporate customers Management First class management team in place and high quality board Keenness of the management team to become a global company

PwC

Section 3

Why Luxembourg?

Why Luxembourg is the preferred location for fast growing companies

Preferred location for many

international fast growing companies

Many Californian tech companies selected Luxembourg for their European HQ: easy, fast, stable, neutral, international...

European market
70% of the 500+ million customer base within 1 hour flight

One of the best IT infrastructure

Luxembourg is fully fiber optic connected with world class state-of-the-art data centers.

Neutral location from which to export

into the rest of Europe

Luxembourg is quite unique in Europe as it can easily be the selling point for services and products for neighbouring countries such as France, Germany, Belgium, Netherlands, Switzerland, etc...

Access to a young and well qualified

European pool of talents

Very competitive pool of talents, generally at least tri-lingual (French, German and English), one of the lowest unemployment rate in Europe.
40% of the EU GDP
70% of the EU GDP

PwC's Accelerator

A competitive Total Tax Rate

Source: Total Tax Rate / TTR: cost of all taxes borne including labour taxes, social security, property taxes, indirect taxes, environmental taxes Source: Paying Taxes 2011, World Bank, International Finance Corporation, PricewaterhouseCoopers
PwC

Luxembourg value proposition for ICT / e-commerce players

E-commerce tax advantages
Lowest standard VAT rate in Europe (15%) as well as

E-commerce players in Luxembourg

Leading companies not exhaustive

reduced rates available for specific products and services (12%, 6%, 3%) e.g., for broadcasting services = 3%
Under current rules, electronically supplied services

European headquarters

in B2C transactions are subject to the VAT rates where supplier located > located in Lux. = 15%
Current rules remain applicable until 1 January 2015,

European headquarters

allowing a net decrease of margin / customer price if supplier located in Luxembourg

Other specific advantages

Cutting edge digital infrastructures Excellent research in Security Confidentiality

Headquarters customer base in Europe

European headquarters

And many more: BigPoint, OnLive, Zynga, Nexon Kabam, Big Fish
PwC's Accelerator

European headquarters (with a new banking license)

Who else has Luxembourg as their European headquarters?

Key international players having strategic operations in Luxembourg
Leading companies not exhaustive
Large scale fund administration & custody Worldwide headquarters

European headquarters

Headquarters customer base in Europe

Corporate bank for European activities

European business centre

Worldwide headquarters (Europes global telecommunication satellite operator) New global headquarters of its Powertrain division Production site and Research Centre (2nd in the World after the US one )
PwC

Global Procurement Center in Luxembourg

Centre of excellence in funds administration & custody

Investment banking and Private banking

Section 4

PwC Accelerator Team

All of PwCs Accelerators Service Offering is performed by PwCs highly specialized team & core competencies
Alexandre Rhea Partner & CEO PwCsAccelerator
Laurent Probst Partner & Leader R&D and Innovation

PwCs Accelerator

Fund Raising
Jean-Franois Kroonen

Corporate Christophe Loly Structuring

Human Christian Scharff Resources

IT Services

Access to PwC network: Latin America, India, Asia, Europe, US, Middle East, Russia

PwCs Accelerator is able to offer, monitor and coordinate for the benefit of its clients what PwC is used to provide to large corporate clients
PwCs Accelerator Local to Global

PwC

15

Conclusion: PwCs Accelerator is your Fast track to European clients

Your one-stop-shop in Luxembourg to: Access to all of PwCs network in Europe Access to EU based resources Access to EU partners

Access to EU funding

PwC

Your main contacts

Anton Abashkin PwC Russia Leader of CTI Advisory laurent.probst@lu.pwc.com (+352) 49 48 48 25 64
Alexandre Rhea Partner at PwC Luxembourg CEO of PwC's Accelerator alexandre.rhea@lu.pwc.com (+352) 49 48 48 66 01

For further information please visit us at: www.pwc.ru/cti www.pwcaccelerator.com

2012 PwCs Accelerator S. r.l.. All rights reserved. PwC refers to the Luxembourg member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
PwC's Accelerator

Thank you!

www.pwc.ru/cti
2012 PwC. All rights reserved. PwC refers jointly to ZAO PricewaterhouseCoopers Audit, PricewaterhouseCoopers Russia B.V. and Representative Office of Pri cewaterhouseCoopers Legal CIS B.V. or, as the context requires, other member firms of PricewaterhouseCoopers International Limited(PwCIL). Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.