1. KPMG CEE AUDIT / TAX / ADVISORY / LINE OF BUSINESS CEE Real Estate Capital Markets “Dense Clouds, No Rain” George Leslie Director Advisory Head of Special Situations Group, CEE April 8, 2009

2. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 2 Outline Current situation - fundamental issues Distressed situations - principal stakeholders Restructuring strategies - general activities Policy questions & market regeneration

3. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 3 Current Situation Fundamental issues

4. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 4 Hello!

5. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 5 Non-functioning market (chaos)

6. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 6 Confusion, misinformation

7. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 7 Restructuring (Grandfather of restructuring, Samuel Pepys)

8. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 8 Global deleverage

9. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 9 Unavoidable capital destruction

10. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 10 Distressed Situations Principal stakeholders

11. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 11 Banks situation

12. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 12 Investors/fund managers situation

13. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 13 New players (Somalia based opportunity funds)

14. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 14 Developers situation

15. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 15 Restructuring General activities

16. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 16 Bank restructuring

17. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 17 Risk management (Pre-default)

18. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 18 Financial restructuring Diagnostic assessment (IBR) Valuation and pricing analysis Liquidity and working capital management Financial plans to underpin the restructuring Lender/borrower communications and negotiations Accelerated M&A advice, transaction support Strategic financial advice Contingency planning Monitoring

19. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 19 Operational restructuring Business model rationalization Enterprise value rationalization & re-engineering Restore order, clarity & stability Operational plans to underpin restructuring Downsizing Management reorganization, interim management Processes – decision making, production, etc. Market, product/service realignment Governance

20. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 20 Investors/fund managers

21. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 21 Uncovered positions

22. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 22 LP Revolt Promote evaporation Pending sponsor insolvency Misalignment of stakeholder incentives/interests Monitoring Voluntary/forced surrender of investment manager Fund dissolution or transition to new sponsor

23. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 23 Policy Questions Market regeneration

24. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 24 Containment Quantitative easing Sovereign guarantees Bank nationalization Bank recapitalization

25. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 25 Market regeneration Bank transparency Isolate toxic assets Workout Capital redistribution Derivatives regulation

26. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 26 Muddling through – economic trends Inflation versus deflation

27. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 27 Time…

28. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 28 …is not kind…

29. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 29 …to inactive markets

30. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 30 Market activity, transactions

31. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 31 Redistribution of capital

32. © 2009 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. 32 George Leslie Director Advisory Head of Special Situations Group KPMG CEE +36 703 331 467 george.leslie@kpmg.hu www.kpmg.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.