6 th International Venture Capital Forum Athens 14 th -15 th June 2005 Private Equity in Europe -Fund Raising and Trends

Overview Europe – Venture Capital

Summary Small uptake in fundraising albeit at a historically low level Increase in investment activity Distributions are still moderate and below 2003 level however significantly higher then net value appreciation is positive for the first time in 3 years

2004 VC fundraising Amounts raised are remain at the low level of the mid 90s However market saw a slight increase of funds coming to market Source: Venture Economics, CD analysis Amount in EUR (m) Number

VC Investment activity The investment activity has increased significantly in 2004 when compared to 2003 both in number of deals as well as amounts invested Source: Venture Economics, CD analysis Amount in EUR (m) Number

Distributions from VC funds Source: Venture Economics, CD analysis While distributions are still weak they show a substantial increase from the lowest value of 2002

Valuations of Venture investments show first signs of recovery 2004 shows a positive net value appreciation for the first time after a 3 year decline Source: Venture Economics, CD analysis Amount in EUR Mio

Outlook European VC is still struggling: EU venture capitalists have not succeeded in building world-beating companies Even during peak times the EU underperformed the US IPOs are much harder to complete in Europe as a NASDAQ equivalent is missing Fewer experienced entrepreneurs available But….

The European VC market is maturing During the recession the structure of the EU VC landscape has fundamentally changed with two-thirds of the players leaving the market and the committed and experienced players remaining More venture capitalists available that have been through a cycle The VC industry in EU has increasingly become Pan-European shaping a single market Management teams are becoming more senior and better networked with founders launching their second or third business IPO markets have been best since 2000 with 34 IPOs completed in 2004 up from 8 in 2003 Scarcity of funds make good deals available at attractive prices for those with funds available Overall we believe there is potential in the EU venture capital market to achieve attractive returns going forward

Overview Europe – Buy-outs

Summary Fund raising in 2004 has been weaker then 2003 Investment activity has increased in number however amounts invested are less then in has seen very strong realizations and exceeds 2003 by over 70% Exits other than trade sales and IPOs are still the strongest source of realizations Comparison of EU LBO performance with US performance has been strong historically but is lagging behind in recent years There is no trend that either large cap or small cap is outperforming the other segment

2004 has been a weak fund raising year Driven by few and mainly mid-cap funds in the market rather than by lack of demand Likely to pick up in 2005 with many large cap funds coming back to market Source: Venture Economics, CD analysis Amount Number

Deal Flow continues to improve with amounts invested still lagging The market sees the trend of increased investment activity in terms of number of deals to continue However total amount of funds disbursed in 2004 is low indicating a large number of smaller deals Source: Venture Economics, CD analysis Amount Number

Distributions from buyouts have been strong in 2004 Source: Venture Economics, CD analysis Distributions from Buyouts have been highest for the last 10 years

Traditional exit routes are still weak High level of exits through trade sales, refinancing and other give rise to concern IPO markets continued to recover slowly Write-offs have stabilized Source: EVCA * Sale to another VC, Repayment of Principal Loans, Sale to Financial Institutions, Sale to Management and Other Means 25.2% 7.6% 5.7% 10.2% 51.3%

European LBO returns in a comparison with the US EU_LBO [11%] EU_LBO [13%] EU_LBO [22%] EU_LBO [20%] EU_LBO [27%] EU_LBO [31%] EU_LBO [16%] EU_LBO [5%] US_LBO [2%] US_LBO [4%] EU_LBO [4%] US_LBO [14%] US_LBO [1%] US_LBO [-37%] US_LBO [9%] US_LBO [11%] US_LBO [19%] US_LBO [20%] US_LBO [17%] US_LBO [10%] US_LBO [8%] US_LBO [4%] EU_LBO [1%] EU_LBO [4%] US_LBO [1%] EU_LBO [0%] EU_LBO [-13%] EU_LBO [-38%] Source: Venture Economics Data Q4, 2004, CD analysis European returns have been strong throughout the 90s, however have been weaker in recent years While 2003 and 2004 are too early to tell, 2002 is clearly lagging behind US returns

Returns of EU large cap vs. EU small cap EU_LBO _Small [11%] EU_LBO _Small [13%] EU_LBO _Small [22%] EU_LBO _Large [23%] EU_LBO _Large [50%] EU_LBO _Large [64%] EU_LBO _Small [35%] EU_LBO _Small [16%] EU_LBO _Large [9%] EU_LBO _Small [3%] EU_LBO _Large [7%] EU_LBO _Large [4%] EU_LBO _Small [2%] EU_LBO _Large [12%] EU_LBO _Large [-32%] EU_LBO _Large [10%] EU_LBO _Large [0%] EU_LBO _Small [19%] EU_LBO _Small [17%] EU_LBO _Large [19%] EU_LBO _Large [16%] EU_LBO _Small [4%] EU_LBO _Large [-2%] EU_LBO _Small [2%] EU_LBO _Small [4%] EU_LBO _Large [-5%] EU_LBO _Small [-21%] EU_LBO _Small [-48%] No trend in either segment being able to outperform the other can be seen Source: Venture Economics Data Q4, 2004, CD analysis Average IRR, cut-off small: < EUR 300Mio

Outlook into 2005 While fundraising in 2004 was weak a strong pickup in 2005 is expected with a substantial number of large cap funds in the market A further increase in investment activity is expected High influx of capital available for large cap transactions is expected to result in pressure on prices and overleveraging companies According to a Financial News survey Europe is expecting its first EUR 10bn deal in 2005 Continuing low interest rates and availability of debt might result in an overheated market Positive trends of 2004 are expected to continue in 2005