Sortis Invest Presentation 20101005 En

SORTIS INVEST

Corporate Presentation

Sofia

October 2010

2

Contents

Corporate Presentation

Overview

SORTIS Group

Services

3

4

5

6Private Equity

Venture Capital

Mezzanine Loans

Project Finance

7

8

9

10Corporate Finance

Fundraising Services 11

Approach

Pre- & Post- Investment Support

Investment Funds

13

14

15

16Funds Investment Criteria

Strategic Investors

Management

Key Team Members

17

18

19

20Track Record

Contacts 21

EU Grants Funding 12

Overview

SORTIS Invest structures investment schemes that enable:

Investors to benefit from attractive business opportunities

Entrepreneurs to implement their investment plans

3Corporate Presentation

SORTIS Invest is a financial and investment advisor to businesses, venture

capital & private equity funds, institutional and individual investors.

Areas of expertise

CorporateFinance

EU GrantsFunding

Mergers &Acquisitions

VentureCapital

PrivateEquity

SORTIS Invest is part of the SORTIS Group that also comprises of SORTIS Real

Estate and SORTIS Credit

Experienced team in equity investments, real estate and corporate

restructuring projects in Bulgaria and internationally

Proven reputation and professional ethics

Fundraising

Investment Banking Boutique

Financial advisory services

to companies and fund

managers:

Private equity and

venture capital

Corporate finance

Mergers and acquisitions

EU grants funding

Fundraising for fund

managers (GPs)

SORTIS Group

Corporate Presentation 4

SORTIS Invest is part of the SORTIS Group that includes:

Real Estate Investment Management Company

Sources and structures

individual and collective

investment schemes:

RE investment advisory

RE portfolio

management

Property fund

management

Mezzanine RE financing

Active in all major real

estate sectors

Credit and Leasing Advisory Company

Advisory services to

companies and individuals:

Mortgage loans

Investment loans

Consumer loans

Leasing

Partnership agreements

with the leading banks,

non-banking and leasing

financial institutions in

Bulgaria

SORTIS Invest: Services

5Corporate Presentation

Private equity

Venture capital

Mezzanine loans

Bank loans and other debt capital

Leasing

EU grants funding

SORTIS Invest assists entrepreneurs inselecting and securing the mostappropriate type of financing for theirinvestment plans through

Investment banking services tocorporate clients

Advisory services to private equity fundmanagers

Mergers & acquisitions

Corporate finance

Company restructuring

Identifying attractive investment opportunities in various sectors such as TMT, Energy, Financial services, Retail & Trade, Food & Beverage, Healthcare, etc.

Private placement services

Private Equity

In a private equity or venture capital deal the investor:

Buys shares in the investee company

Does not receive regular installments like interest on loans

Assumes part of the business risk of the entrepreneur

Makes money only when the entrepreneur also makes money

Looks for profitable and cash-flow positive companies

6Corporate Presentation

Equity

Investors

Private Equity

FundsVenture Capital

Funds

Strategic

Investors

Buyout Funds “Business Angels”

TitleSources of

Funding

Venture Capital

Venture Capital is given to start-up or early stage growing companies

that need external financing in order to continue their expansion

7Corporate Presentation

Market valueof the portfoliocompany

Time / Life cycleof the portfolio company

Venture Capital

Investment Strategy aligned with business life cycle

Mezzanine Loans

8Corporate Presentation

Mezzanine financing is a way of attaining financing withoutceding ownership of the company. It is a blend of traditionaldebt financing and equity financing, reaping benefits of both

Mezanine financing, unlike traditional bank loans, is anunsecured debt, requiring no collateral

Like debt, mezzanine financing is very fluid and does notnecessarily involve giving up an interest in the company

Very high interest rates - often in the 20-30% range

Lenders often have the right to convert their stake to equityownership in the event of a default on the mezzanine loan

Mezzanine financing facilitates bank financing for the project, asit is subordinated to the senior debt

Project Finance

Project Finance is financing for a particular project (such as a mine,

toll road, railway, pipeline, power station, etc.) which is repaid from

the cash flow of that project

The financier principally looks at the assets and revenues of the

project in order to secure servicing of the loan on a stand-alone basis

Little or no recourse to the non-project assets of the borrower or the

sponsors of the project

The credit risk associated with the borrower

is not as important as in ordinary loan

transactions

Identification, analysis, allocation and

management of every risk associated

with the project is of paramount importance

9Corporate Presentation

Corporate Finance

Corporate Presentation 10

SORTIS Invest helps its

corporate finance clients to

maximize the value of their

companies while keeping an

eye on the firm's financial risks

SORTIS assists companies in

their strategic choices aimed

at growth, market penetration

and/or exit

Debt-raising &

restructuring

advice

Business sales

&

disposals

Valuations,

fairness

opinions and

appraisals

Management

buy-outs

& buy-ins

Mergers and

Acquisitions

Strategic

alliances

Public company

&

take-over advice

Corporate Finance Services

Fundraising Services

Corporate Presentation 11

SORTIS Invest provides fundraising advisory services to private equity

and venture capital fund managers

We connect GPs seeking to raise capital with investors who look to

increase their exposure to the SEE region

Limited Partners may include: fund-of-funds, pension funds, insurance

companies, family offices, endowments, foundations, etc.

General Partner(Fund Manager)

Private Equity Fund

Limited Partners

(Investors)

Fund management

Capital commitment

Negotiations Negotiations

SORTIS Invest assists companies in obtaining

grant financing from EU’s Operational

Programmes that are active in Bulgaria

The SORTIS EU Grants services include:

Eligibility evaluation

Competent choice of the most appropriate scheme for the Client’s

project

Preparation of a professional business plan and financial model that

demonstrate explicitly the project’s business sense and profitability

Putting together the physical application and organizing all necessary

documentation

Assistance in attracting the needed co-financing – securing 100% of the

investment required to implement the project

Corporate Presentation 12

EU Grants Funding

Approach

Before taking a mandate SORTIS Invest makes an internal assessment

of the project in order to determine its:

Feasibility

Bankability and finance-ability

Project Sponsor’s creditworthiness

SORTIS Invest accepts to work only on projects that receive a positive

appraisal on each of the above criteria

SORTIS Invest suggests a financing structure, which best serves the

interests of the entrepreneur and also meets the investment policies

and requirements of potential investors

Credibility and trust are a main factor in the decision making process

of all financial investors

Investors heavily rely on the discretion of SORTIS Invest in selecting and

proposing them high-quality projects

13Corporate Presentation

Pre- & Post- Investment Support

SORTIS helps its advisory clients determine and

refine a winning business strategy and then

implement it

Business strategy is determined based on

assessment of the Client’s competitive position

and taking into consideration global and local

market conditions and long-term trends

14Corporate Presentation

Competitive advantage of

the client

Problem areas

Strategic positioning

Market trends

Project characteristics

Project Analysis Methodology

15

Seed

Capital

Business

AngelsVenture

Capital

Private

Equity

Mezzanine

Buy-outs

Investment Funds

SORTIS Invest has built up an extensive network of 130+ investment

funds in Europe, North America, Middle East and Asia

Corporate Presentation

16

Controlling,

majority or

minority stakes

Telecom

Media

IT

Energy

Financial Services

Food & Beverages

Healthcare

Transport

Retail

Manufacturing

Other

Usually 3 to 7

years,

maximum of

15 years

From deals of

less than

€ 1mln equity

to large

transactions

of € 150+mln

Equity

Investment

Size

Investment

HorizonSectors on

Focus

Ownership

Stake

Funds’ Investment Criteria

The investment criteria of the funds, SORTIS Invest partners with, cover

a broad range of investment situations:

Transaction

Types

Buy-outs

Growth capital

Seed capital

Early stage

Special situations

Turnaround

Mezzanine

Secondaries

etc.

Corporate Presentation

Strategic Investors

Corporate Presentation 17

SORTIS Invest has also created a network of strategic corporate and

individual investors that could bring substantial benefits to companies

and businesses:

Adding value to investments

Industry and business know-how

Brand name recognized in many countries

Marketing, operations and sales expertise

Training to company employees and management

Industry and personal connections beneficial for bringing in additional

capital and/or assisting with the sale of the company's products and

services

Strategic partners operate in major industries such as healthcare,

telecommunications, technology, retail, food processing, beverages,

transportation, etc.

18

Management

Corporate Presentation

12 + years of investment banking, M&A and asset management experience

ING Barings - Frankfurt/Main (Germany)

ETEBA - investment banking arm of National Bank of Greece

Balkan Advisory Company - independent investment banking boutique in SE Europe

TBI-BAC REIT - structured the first Real Estate Investment Trust in Bulgaria and acted as the

REIT’s Executive Director

ADDRESS Invest – Executive Director

Real estate investment management

Established SORTIS Invest – investment banking boutique in November 2006

Educated in Bulgaria, the Netherlands and Germany

Master’s degree in Banking and Finance

Bachelor’s degree in Business Administration

CFA® Charterholder

Served two mandates as Board member of the Bulgarian CFA Society

Board Member of the Alumni Club at Faculty of Economics and Business Administration of

Sofia University

Regular speaker at private equity and investment conferences for Central and

Eastern Europe.

Mr. Martin Paev, CFA

Born 1975, Bulgarian

Chairman, SORTIS GROUP

Key Team Members

Corporate Presentation 19

Dimcho G. Dimitrov Investment Banking Associate

Experienced in strategic market research, analysis and forecasting, new product

market sizing through financial modeling, technology reviews and company due

diligence on M&A transactions

Strategy Analyst W. R. Grace & Co., a $3B public specialty

chemicals companyAnalytical support for the organic and

external growth initiatives of a $300M division

Master of Business Administration (MBA) Northeastern University, Boston, USA

Krasimir GoranovInvestment Banking Associate

Experienced in investment analysis, project and company valuations, hedging and risk

control and portfolio management

Senior Financial Analyst Q Investments, L.P., a privately-held hedge

fund with $2.7B of assets under management

Financial Analyst Bear Stearns & Co.

Financial Analyst William C. Connor Educational Investment

Fund

Bachelor Degree in Finance & Accounting Texas Christian University, Fort Worth, USA

Track Record

20Corporate Presentation

WiMax Telecom Operator

Investor: Dekol

Amount: n.a.

Financial Advisor to

Atlantis.bg (Project Sponsor)

August 2007

LAN Internet Provider

Investor: Advance Equity

Holding

Amount: € 4,000,000

Financial Advisor to

Speedy Net

December 2007

Speedy Net

Risk Management Software

Investor: New Europe

Venture Equity (NEVEQ)

Amount: $ 5,000,000

Financial Advisor to

FinAnalytica

March 2008

Selected private equity and venture capital deals:

Contacts

Mr. Martin Paev, CFAGeneral Manager

E-mail: [email protected]

Cell: +359 88 50 50 200

www.sortis.bg

Tel: +359 2 943 90 70

Fax: +359 2 943 90 71

49 Madrid Blvd., Floor 1

Sofia 1505, Bulgaria

21Corporate Presentation