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2 Hanna Loikkanen Chief representative, Moscow, East Capital Private Equity ECFF Investor update.

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Presentation on theme: "2 Hanna Loikkanen Chief representative, Moscow, East Capital Private Equity ECFF Investor update."— Presentation transcript:

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2 2 Hanna Loikkanen Chief representative, Moscow, East Capital Private Equity ECFF Investor update

3 EMEA and European banks performance Share price performance, % Source: Bloomberg, last price as of October 3, 2011

4 Downside risks are being priced in P/BV multiples based on 2010YE book Source: VTB Capital, Banks Watch monthly issues May 3 May 31 Jun 30 Aug 1 Aug 31 Oct 4 NOMOS Bank-2.02.1 1.61.1 Bank St Petersburg1.91.71.8 1.51.0 Bank Vozrozhdenie1.7 1.41.51.41.1 Bank of Georgia1.51.41.31.41.21.0

5 Banking sector growth has remained strong Loan growth in our regions y-o-y % change in local currency Deposit growth in our regions y-o-y % change in local currency The banking sector in our regions have continued to grow on both sides of the balance sheet with more pronounced growth in Russia and Georgia

6 Improved LTD ratios favourable for NIM Net customer loans to deposits Source: Banks data, National banks green circles = RU traded banks that are not Fund’s holdings

7 The banks are mostly deposit funded Deposits/assets Source: Banks data, National banks green circles = RU traded banks that are not Fund’s holdings

8 Improved asset quality adds to higher profitability Provisions/gross loans Source: Banks data, National banks green circles = RU traded banks that are not Fund’s holdings

9 NIM and ROaEs are improving in 1H2011 Net Interest Margin (in local currency) Return On Average Equity (in EUR) Source: Banks data

10 East Capital Financials Fund performance %Inceptiony-t-d3m NAV -46,3 -11,6 -15,0 RTS FI4,1-28,9 -27,2 OTC Price -71,0 -12,1 -25,6 Latest NAV as of October 31, 2011 Jan 2006 - Oct 2011

11 Portfolio valuation (as of October 31, 2011) Date of initial investment Ownership stake Purchase price EURm P/BV at purchase Fair Value EURm Fair Value/ Current Book 1 Likely exit Bank of GeorgiaApril 200611.1%33.1n/a 2 31.40.9Listed BTA BankAugust 20060.0%100.03.0--Sold in Sept 2011 Bank NadraAugust 20060.7%57.4*3.63.4n/aStrategic sale Locko BankSeptember 200611.1%16.51.816.81.0Strategic sale Bank KedrNovember 200618.8%10.82.215.91.4Strategic sale ProbusinessbankNovember 200619.9%59.0n/a 2 51.01.0Strategic sale/IPO Asian-Pacific Bank 4 December 200617.9%22.6n/a 2 25.91.0Strategic sale Platinum BankFebruary 200723.7%21.62.615.01.0Strategic sale AkibankJune 200720.0%13.61.014.91.0Buyback by the owner Pivdennyi BankJanuary 200810.0%54.44.514.61.0Strategic sale/IPO FIA BankApril 200820.0%16.72.97.21.0Strategic sale Morgan & StoutJuly 200833.0%5.0**n/a 3 12.1n/a 3 Strategic sale EE-DF AGMarch 201025.0%1.1n/a 3 1.1n/a 3 - Total investments411.7209.3 Cash19.0 Undrawn commitments8.3 Total portfolio439.0236.6 1 Latest available book value, currency adjusted *38.1m Equity and 19.3m Convertible debt 2 Several purchases and thus various multiples ** 1m Equity and 4m Convertible loan 3 Not applicable 4 Asian - Pacific Bank merged with Kolyma Bank and Kamchatprombank. Purchase price and fair value are the sums of banks’ prices and valuations the Fund received by external appraiser

12 Road towards exit Focus on value enhancement –Secure availability and sufficiency of funding –Focus on profitability (ROE, F&C income, cost of risk) –Strengthen market position and brand recognition Active preparation for exit –Mandate advisors/quiet marketing –Review and update marketing material Increase in market valuations necessary to facilitate exits

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