This document summarizes CzechLink, a platform run by CzechInvest that assists with mergers and acquisitions in the Czech Republic. CzechLink provides services to both investors looking to enter or expand in the Czech market through acquisitions, as well as Czech companies seeking investors. It outlines the types of companies that participate, which are established Czech firms considering an exit or seeking growth capital. CzechInvest prepares detailed prospectuses on participant companies to help attract potential buyers. The service aims to increase visibility for sellers and provide buyers with knowledge of the Czech market and actively seeking acquisition targets.

1. CzechLink – Mergers and Acquisitions
Supportive Platform
Pavel Chovanec

2. Source: CzechInvest 2014
Latest M&A Trends – Transactions in Q1 2014
Healthcare: 3
Industrial pro-
ducts & services: 16
Energy: 2
Real Estate: 23
Financial
institutions: 2
Retail & Consumer
Goods &
Entertaintment:22
-- Transactions approved by competition regulator: 6

3. CzechLink:Project Aims
Services for investors looking to enter or increase
their foothold in the Czech Republic via acquisition
Qualified assistance for Czech companies seeking
investors
1
2
Source: CzechInvest, 2014

4. CzechLink: the Process Overview
Source: CzechInvest, 2014

5. CzechLink: Participants
Founders considering exit
 Companies established in 90s
 Lack of succession
Owners searching for partners to increase growth
 Companies competing with large groups
 Locally successful entities seeking funds for expansion
 Support for growth - not only survival
Minimum 5-year history and based in Czech Republic
Not declared bankrupt or allowed financial compensation or in insolvency
proceedings
Source: CzechInvest, 2014

6. CzechLink: Service for the Buy-side
-- CzechLink participants (acquisition targets) are companies from
manufacturing and IT sector only
-- CzechInvest prepares company prospectus based on performance data from
the previous 5 years
 Data compliant with Czech corporate tax law and accounting standards
-- The company prospectus consists of:
 Complete company overview including detailed commercial and
financial info
The financial profile is prepared in compliance with Czech accounting
standards and includes all internationally recognized key indicators
 EBITDA, EBIT, etc.
Source: CzechInvest, 2014

7. CzechLink: Benefits
Buy-side
 Knowledge of Czech industrial environment
 Complete coverage of all regions and industrial sectors
 Targets actively considering transaction
 Post-merger expansion can be supported by investment incentives
handled by CzechInvest
Sell-side
 Increased visibility
 Marketing of the acquisition opportunity whilst retaining
confidentiality
 Information material to gain realistic expectations
 Participation in project CzechLink is free of charge
Source: CzechInvest, 2014

8. CzechLink:Participants List
Brief overview with
initial information
Headcount, brief financial info
26 members May 2014
Details available after signing NDA
Source: CzechInvest, 2014
8
8
5
5
Structure of Participants (according to Headcount)
<50 51-100 101-151 150<

9. Case Study – Investment targets in
CzechLink
Ronas & KOH-I-NOOR
-- Injection moulding companies
-- Sales EUR 10 mil, Headcount: 230
Inproma & VÍTKOVICKÉ SLÉVÁRNY
-- Foundry bought machining shop and expand in automotive
-- Sales EUR 5,5 mil, Headcount 200
Source: CzechInvest, 2014

10. Thank you for your attention.
czechlink@czechinvest.org
www.czechinvest.org