1 Presentation to the European Broadcasters Union 29 October 2012 Working with the European Bank for Reconstruction and Development

2 The European Bank for Reconstruction and Development (EBRD) at a glance International Financial Institution Solid financial position Development mandate Largest investor in the region Established in 1991 and owned by 63 countries and the EU and EIB (1) AAA rating and a capital base of EUR 30bn To foster transition towards open and democratic market economies and promote entrepreneurship In 2011 Annual Business Volume amounted to EUR9.1bn comprising 380 projects (1) 57% of shareholding is G7 and 84% is OECD country based. EU27 countries hold 62.8% of the shareholding.

3 The EBRD’s Objectives Transition Impact Sound Banking EBRD Addition- ality Promotes projects that expand and improve markets and help build institutions that underpin the market economy Supports, but does not replace, private investment. Provides financing at reasonable terms Project returns are commensurate with risks

4 EBRD operates across 33 countries, 40 regional offices and 3 continents EBRD headquarters EBRD country of operation Central Europe and Baltics Croatia Estonia Hungary Latvia Lithuania Poland Slovak Republic Slovenia South-Eastern Europe Albania Bosnia and Herzegovina Bulgaria FYR Macedonia Romania Montenegro Serbia Eastern Europe and the Caucasus Armenia Azerbaijan Belarus Georgia Moldova Ukraine Central Asia and Mongolia Kazakhstan Kyrgyz Republic Mongolia Tajikistan Turkmenistan Uzbekistan Southern and eastern Mediterranean Egypt Jordan Morocco Tunisia Russia Turkey

5..throughout a number of industries and sectors AgribusinessNatural Resources Power and Energy Financial Institutions Property and Tourism Manufacturing and Services TransportMunicipal Infrastructure Climate Finance Information and Communication Technologies (ICT) Equity Funds

6 EBRD provides wide financing solutions Typical Size Term/Holding period Investments approach/Limits Instruments Debt instruments: typically from 7 to 10 years Equity Investments and Guarantees: typically from 3 to 7 years Debt: public and private instruments, fixed and floating, syndicated loans, bonds Equity: Private Equity, IPO Quasi Equity: mezz, convertible loans, subordinated loans Ticket size from a low single digit EUR mn amount to over EUR 100 mn EBRD typically acts as a co-investor along other sponsors EBRD’s stake typically does not exceed 35% of the total investments (equity and debt) or 50% in case of syndication with other international banks Currency Local and major currencies (US$, EUR, RUB, etc.) Exact financing terms are defined by specific project circumstances Applications Growth capital, acquisition and consolidation, non-exclusive bidding support, working capital, green/brown fields, JVs, privatization “Typical” investment profile

7 EBRD’s objectives achieved through financing the private sector Invested over €75.2 billion in more than 3,468 projects since 1991 As at end June 2012: –€3.4 billion invested in 153 projects –Private sector accounted for 79% share –Debt 84% & Equity 16% € billion

8 Cooperation with EBRD offers companies numerous advantages Long-term investor Strong ties with Local & Federal Governments 1 4 EBRD aims to develop long-term relationships - typical investment horizon is up to 10 years with longer financing available The Bank relies on a buy-and hold approach, which decreases its dependence on the short term market fluctuations EBRD has established strong and long lasting connections with Local and Federal Governments that allow the Bank to promote and defend interests of its portfolio companies Preferred Creditor Status 5 EBRD has a Preferred Creditor Status, which exempts payments to EBRD generalised moratoria and foreign exchange controls. It allows EBRD to provide financing even in the hardest market conditions Sector knowledge & local expertise 3 Deep knowledge and sector expertise proven by more than 140 executed projects in the ICT sector Structured solutions 2 Transactions are tailored to the needs of the clients and a variety of financial structures are considered Non-standard structures are welcome and a large range of transaction sizes

9 Transparency, sound business principles and TI are the key criteria for the projects financed by EBRD Transparent Shareholding Structure Strong Business Fundamentals Audited Financial Statements Transition Impact (TI) Full transparency of the ownership structure and complete disclosure of the end beneficiaries High level of integrity both among owners and managers and high standards of corporate governance Sound business model with a clear return to the Bank from the main operations rather than from alternative sources At least 3 years of financial statements audited by reputable international or local auditing firms and prepared in accordance with IFRS Impact on the local economy in line with the Bank’s mandate to facilitate transitioning to the market economy

10 Project Timeline Concept Review Contact initiated Define concept Initial company and project information review Mandate letter to initiate transaction Final Structure Approval Project Structure Approval Board of Directors Approval Due Diligence: Financial, Legal and Technical Finalizing the deal terms Drafting legal documentation (term sheet) Signing EBRD project cycle The whole process timing is dependent largely on the various specific circumstances and the availability of relevant information. The Board makes a final review and approves the project Funds are ready to be disbursed Mandate letter Signed Term sheet Signed Legal Documents Signed

11 ICT Sector Cumulative Financing to date: ca. €4bn Current Portfolio: €1bn 140 transactions from low single digit million to €200mn amount 15 dedicated employees Mobile & fixed line ISPs Cable TV Towers Satellites Data centres Fibre Wireless broadband MVNO Pay-TV Mobile payments Investments into the ICT sector are viewed as a key tool in modernizing the local economy and increasing its innovation and competitiveness Content production B2B publishing Cinema chains Outdoor advertising IT services Software developers Systems integrators Call centres Internet Cleantech Semiconductors FDIs Selected Subsectors Comments

12 ICT Sector Investments  Eurovision  Russia Towers - equity investment to finance shared communication infrastructure for mobile and fixed wireless telecom operators in Russia  Emitel – financing an investment programme including (i) new digital terrestrial broadcasting services, and (ii) expansion of telecoms tower services as an independent tower operator

ICT Sector Investments: Financing Digitisation 13 Broadcaster’s need digital infrastructure, including network and digitisation equipment, to respond technological changes and ensure preservation of existing cultural heritage. EBRD financing available for bankable operations (i.e., revenue generating project and/or sovereign guarantee) that are consistent with mandate. Potential revenue streams: Fees for use of digital library Creation of cinema pre-shows mixing advertising, branded entertainment and local content Use of the digital infrastructure for non-public purposes: sports, industrial, commercial, etc. Fees from distribution to cable channels for expatriate viewing

EBRD Legal Transition Programme ICT sector support - overview Focus on development of sector/optimising its impact across the economy Attraction of investment Introduction, enhancement or maintenance of competition Balancing incentive to existing players to invest with access based competition Helps with identification of investment bottlenecks Absent or short-sighted policies Absent or flawed laws Absent or weak institutions Absent or outdated methodologies Absent or weak capacity

EBRD Legal Transition Programme ICT sector support - overview Works with government to modernise policy/regulation to encourage investment Policy dialogue Technical cooperation support Outreach Linked to actual Bank investment projects, whenever possible

Activities Training and capacity building ICT policy development Primary and secondary law drafting and adoption Regulatory implementation High-speed broadband roll-out framework Digital Broadcasting Switchover policy and implementation Radio frequency spectrum rationalisation Infrastructure access and sharing Countries: Albania, Armenia, Azerbaijan, Georgia, Jordan, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Montenegro, Serbia, Tajikistan, Ukraine EBRD Legal Transition Programme Examples of activities and locations

17 Selected projects the ICT team executed in the past across all countries of operations (1/2) Russia 2009 Syndicated Loan Euro 258 million Equity Investment 2011 Poland Euro 10 million Russia 2010 Convertible Loan USD 20 million Russia 2011 Investment in Bond Offering Equity Investment Euro 200 million Poland 2011 Russia 2012 Equity Investment via Venture Capital Facility Poland Privatization – Equity Investment 2008 Euro 49 million Albania 2008 Privatization - Syndicated Loan Euro 27 million Euro 20 million Regional Equity Investment 2008 Poland & Balkans 2009 Loan and Equity Investment Euro 22 million Regional 2012 Loan Euro 43 million Turkey 2012 Loan Euro 100 million Russia Convertible Loan 2012 USD 30 million Russia 2009 Equity Investment USD 11 million Russia 2011 Equity Investment Euro 30 million Romania 2012 Loan Euro 15 million Croatia Convertible Loan 2010 Euro 4 million Regional 2009 Fund Investment USD 30 million

18 Selected projects the ICT team executed in the past across all countries of operations (2/2) Ukraine 2007 Equity Investment Euro 22.3 million Syndicated Loan EUR 50 million Regional 2006 USD 72 million Russia Syndicated Loan Bulgaria Privatisation – Loan and Equity Investment Euro 93 million 2004 Euro 17 million Serbia 2004 Loan and Equity Investment Kazakhstan 2003 Syndicated Loan USD 110 million Syndicated Loan Euro 100 million Albania 2003 Poland 2003 Loan Euro 52.5 million Euro 75 million Poland 2001 Loan Kazakhstan Syndicated Loan Euro 130 million Czech Republic 2002 Syndicated Loan USD 35 million Russia Euro 3 million Bulgaria Equity Investment 2006 Euro 32 million Regional 1999 Equity Investment Euro 151 million Romania Loan Euro 81 million Regional 1998 Loan Euro 65 million Regional 1998 Equity Investment Georgia & Bulgaria 2008 Loan and Equity Investment USD 35 million Loan and Equity Investment

19 Investment Opportunities contact: Director ICT Team Industry, Commerce & Agribusiness Telephone : The European Bank for Reconstruction and Development contact ( Legal Transition programme contact: Paul Moffatt Legal Transition Team Office of the General Counsel Telephone : EBRD One Exchange Square London EC2A 2JN