1. 2009 European Private Equity Market EVCA, The Voice of European Private Equity Industry since 1983 Philippe Defreyn COO and Mid-market Buyout Platform Director EVCA

2. The severe global crisis takes its toll on European private equity Source: EVCA/PEREP_Analytics for 2007-2009 EVCA/Thomson Reuters/PwC for previous years Europe, by location of private equity firm

3. And not only on private equity European M&As Source: Dealogic

4. Fundraising went to a major drop in Q1 2009 (Q1 2007 = 100) Source: EVCA/PEREP_Analytics 200720082009

5. Less concentration of capital Total amount at final closings Source: EVCA/PEREP_Analytics

6. Fundraising picture not so bleak after all Source: EVCA/PEREP_Analytics European private equity firms by vintage year of latest fundraising

7. Source: EVCA/PEREP_Analytics Average amount at final closing Venture funds dominate final closings

8. Average fund size stays constant for most of the market players Source: EVCA/PEREP_Analytics Average amount at final closing Excluding €1 bn+Including €1 bn+ 2007 Average fund size 2008 Average fund size 2009 Average fund size 2007 Number of funds 2008 Number of funds 2009 Number of funds

9. Shift in LP base – a trend or a fad? Source: EVCA/PEREP_Analytics Incremental closings during the year

10. Fundraising: More level playing field across regions € 5.1bn (€50.2bn) €1.6bn (€6.1bn) € 2.2bn (€ 3.4bn) € 2.7bn (€ 11.3bn) € 151m (€ 1.3bn) € 842m (€ 9.3bn) Fundraising by GP location

11. Europe believes in Europe 22.4% (13.6%) 10.3% (10.4%) 18.0% (3.3%) 21.2% (9.7%) 0.4 % (0.3%) 7.5% (6.2%) North America 12.0% (38.9%) Australia Asia 2.5% (7.8%) Rest of World 0.0% (0.3%) Other Western Europe 5.6% (10.2%) Location of LPs behind 2009 Fundraising

12. Regional diversity in the LP base Funds raised by type of investor - % of amount Source: EVCA/PEREP_Analytics The percentage split is based on the known sources of funds

13. Private equity supported more than 4,000 companies in 2009 (Investments - PE funds’ contributions only) Source: EVCA/PEREP_Analytics for 2007-2009 EVCA/Thomson Reuters/PwC for previous years Europe, by location of the private equity firm

14. An uptick in investment as EU GDP growth turns positive Source: EVCA calculation based on Eurostat and PEREP_Analytics EU GDP growth and index of buyout investment activity by amount 200720082009

15. Growth capital – the new paradigm? Source: EVCA/PEREP_Analytics for 2007-2009 EVCA/Thomson Reuters/PwC for previous years Europe, by location of the private equity firm Prior to 2007, growth capital was part of venture capital

16. Mid-market deals drive buyout activity Source: EVCA/PEREP_Analytics Europe, by location of the portfolio company

17. Debt ratios decreased further in 2009 Source: S&P LCD

18. 2009 Investments by GP location 40.4% (41.7%) 13.2% (15.9%) 8.1% (10.2%) 22.9% (20.9%) 4.0 % (2.1%) 11.5% (9.2%)

19. 2009 Investments by investee company location 24.6% (25.9%) 16.0% (19.7%) 11.4% (15.9%) 24.0% (23.9%) 11.0 % (4.7%) 13.1% (9.8%)

20. UK drives cross-border activity €4.7 domestic investments Foreign PE firms investment €3.9bn €0.4bn Top 3 destinations by amount: 1.CEE 2.USA 3.Germany inflowoutflow Investments by UK & Irish PE firms at €8.6bn

21. CEE – a net beneficiary Foreign PE firms investment €1.4bn Top 3 sources: 1.UK 2.Austria 3.France inflow €839mn domestic investments in CEE €10m outflow Investments into CEE companies at €2.2bn

22. CEE – a diverger ? Average investment size Source: EVCA/PEREP_Analytics By location of the portfolio company

23. More follow-on investments to support current portfolio * Percentages are calculated on the number of companies for which the breakdown was known Source: EVCA/PEREP_Analytics Europe, by location of the portfolio company Initial versus follow-on investments % of number of companies*

24. Life sciences/healthcare leads the ranking Overall private equity investment by sector 2009 preliminary2008 Source: EVCA/PEREP_Analytics Europe, by location of the portfolio company

25. Top sectors per segment remain the same in 2009 Source: EVCA/PEREP_Analytics Europe, by location of the portfolio company Consumer goods and retail Venture Buyout/Growth Capital € 2.1 bn 605 600 403 192 274 136 # co 2009 Top Sectors: Communications Business and industrial products Communications Computer and consumer electronics Life sciences € 2.1bn € 2.4bn €2.2bn € 576m € 672m € 950m

26. Divestment window closed in 2009 Source: EVCA/PEREP_Analytics for 2007-2009 figures Europe, by location of the private equity firm Quarterly index (Q1 2007=100) Annual index (2000=100)

27. Consumer goods & retail takes the lead in exits from business & industrial products Divestments (excluding write-offs)Write-offs Source: EVCA/PEREP_Analytics Europe, by location of the portfolio company

28. Conclusions  Activity flows fall dramatically and bottom out in Q2 2009  However, 4,000 European companies receive private equity backing in 2009  Shift in LP base but mainly driven by sparse fundraising  Deal making moves towards the lower end of the market and growth capital gains momentum  Life sciences/healthcare becomes the most popular sector  Private equity firms focus on management and cleaning of current portfolio  Private equity in 2010: fitter and more efficient?

29. Methodology  Data collected through questionnaires and reliable public sources (coverage rate by number of players 70%. For EVCA Members only: 94%)  Europe:for deals, it is defined either by the location of the PE firm (industry statistics) or by location of the portfolio company (market statistics) as referenced in the source; for fundraising it covers funds primarily focused on investments in Europe.  Fundraising:only formal closings included with committed amount; covers only direct PE funds (excludes distressed debt, infrastructure, real estate, funds of funds)  Investments:equity value captured, debt only if provided by the PE funds (bank leverage excluded) unless specified it is transaction value  Divestments:measured at amount at cost divested, not proceeds Segment definitions  Venture Capital: Seed, Start-up, Later-stage  Buyout: Buyout (MBI, MBO, LBO, PIPE, PTP), Replacement capital, Rescue/turnaround, Growth Prior to 2007, growth capital was part of venture capital Prior to 2007, rescue/turnaround was part of venture capital