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EQUITY IN RUSSIA AND CIS Kurt GeigerEBRD  New York, September 11, 2006: 

EQUITY IN RUSSIA AND CIS Kurt Geiger EBRD New York, September 11, 2006

Outline : 

Outline EBRD EQUITY PORTFOLIO WHY PRIVATE EQUITY EBRD INVESTMENT CRITERIA INVESTMENT PROCESS OPPORTUNITIES + CHALLENGES

Cumulative EBRD Equity and Russia: 

Cumulative EBRD Equity and Russia

EBRD Equity – by Region: 

EBRD Equity – by Region August 2006 data Central Europe and Baltics 61% Central Asia 3% Russia 18% South-Eastern Europe 15% Eastern Europe and Caucasus 3%

EBRD Direct Equity Russia –by Sector: 

EBRD Direct Equity Russia – by Sector August 2006 data

EBRD Private Equity Russia - by Sector: 

EBRD Private Equity Russia - by Sector End 2005 Data

EBRD Equity - Performance: 

EBRD Equity - Performance 1176 1583 1757 616 2288 1176 1073 1862 1751 0 1000 2000 3000 4000 5000 Corporate EUR mln Returned FV Invested Equity Funds Financial Institutions July 2005

EBRD Equity Russia - Performance: 

EBRD Equity Russia - Performance 442 188 257 238 106 315 445 113 138 0 100 200 300 400 500 600 700 800 Equity Funds Financial Institutions Corporate EUR mln Returned FI Invested July 2005

Our Investment Criteria : 

Our Investment Criteria QUALITY OF PARTNERS TRANSPARENCY + DISCLOSURE CORPORATE GOVERNANCE AND BEST BUSINESS PRACTICES COMMITMENT TO CHANGE ALLIGNMENT OF INTERESTS GOOD INSTITUTIONAL ENVIRONMENT RULE OF LAW TRANSPARENT CONFLICT RESOLUTION REGULATORY OVERSIGHT COMMERCIAL VIABILITY

Investment Process : 

Investment Process AGREEMENT ON CORE PRINCIPLES OF PARTNERSHIP DUE DILLIGENCE APPROVAL BY MANAGEMENT + BOARD ACTIVE PARTICIPANT IN VALUE CREATION (PARTNERSHIP) BOARD REPRESENTATION CO-OPERATIVE EXIT MANAGEMENT

Opportunities and Challenges: 

Opportunities and Challenges RUSSIA NEEDS TO DIVERSIFY ITS ECONOMY GROWING NUMBER OF PRIVATE ENTERPRENEURS STRONG PRIVATE EQUITY FUND INDUSTRY OPPORTUNITIES IN MOST SEGMENTS OF ECONOMY CONSOLIDATION HAS AND WILL BE IMPORTANT INCREASING PRICES

APPENDICES: 

APPENDICES

What is the EBRD?: 

What is the EBRD? International financial institution, promotes transition to market economies in 27 countries from central Europe to central Asia Owned by 60 countries and two inter-governmental institutions Capital base of €20 billion Cumulative commitments €30.3 billion Unaudited December 2005

Private Equity Investments as % of GDP: 

Private Equity Investments as % of GDP Well below Western levels (based on end 2004 data) Source: EVCA, RVCA, EBRD Russia:0.04% End 2004 data

Russia/CIS – Estimated PE Market: 

Russia/CIS – Estimated PE Market IFI still play a dominant role, with EBRD investee funds representing 40% of estimated market Preliminary end 2005 data 0 1 2 3 4 5 6 EBRD Committed Including EBRD Funds' Committed Capital Including Non-EBRD Funds Estimated Capital USD Billion

Russia/CIS – EBRD investments : 

Russia/CIS – EBRD investments First investment by EBRD in 1993 Invested in 27 funds, 15 managers* USD 495 million paid-in* These funds made 239 investments for a total of USD 855 million** * Preliminary end 2005 data ** End 2004 data

EBRD’s CIS Portfolio - Overview: 

EBRD’s CIS Portfolio - Overview Russia/CIS portfolio consists of 27 funds, 15 fund managers * excludes real estate funds Preliminary end 2005 data

Copyright 2006 EBRD. All rights reserved: 

Copyright 2006 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 use of this information. Copyright 2006 European Bank for Reconstruction and Development. All rights reserved.