SORTIS Invest is an investment banking boutique focused on mergers & acquisitions, private equity, venture capital and corporate finance. Company presentation www.sortis.bg

1. SORTIS INVEST
Corporate Presentation
Sofia
September 2009

2. Contents
Overview 3 Approach 12
SORTIS Group 4 Pre- & Post- Investment Support 13
Services 5 Investment Funds 14
Private Equity 6 Funds Investment Criteria 15
Venture Capital 7 Strategic Investors 16
Mezzanine Loans 8 Management 17
Project Finance 9 Key Team Members 18
Corporate Finance 10 Track Record 19
EU Grants Funding 11 Contacts 20
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3. Overview
SORTIS Invest is a financial and investment advisor to businesses, venture
capital & private equity funds, institutional and individual investors.
 SORTIS Invest structures investment schemes that enable:
 Investors to benefit from attractive business opportunities
 Entrepreneurs to implement their investment plans
 SORTIS Invest is part of the SORTIS Group that also comprises of SORTIS Real
Estate and SORTIS Credit
Areas of expertise
Private Venture Corporate Mergers & EU Grants
Equity Capital Finance Acquisitions Funding
 Experienced team in equity investments, real estate and corporate
restructuring projects in Bulgaria and internationally
 Proven reputation and professional ethics
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4. SORTIS Group
SORTIS Invest is part of the SORTIS Group that also comprises:
Real Estate Investment Management Credit and Leasing Advisory Company
Company with expertise in: with expertise in:
 Real estate investment advisory  Mortgage loans
 Real estate portfolio management  Investment loans
 Property fund management  Consumer loans
 Mezzanine real estate financing  Leasing
SORTIS Real Estate structures individual and SORTIS Credit offers advisory services for bank
collective investment schemes that enable its loans and leasing to companies and
client-investors to benefit from the real estate individuals.
opportunities the company has sourced and Partnership agreements with the leading
secured. commercial banks, leasing companies and
Active in all major real estate sectors, non-bank financial institutions in Bulgaria.
including residential, office, retail, industrial
and hotels.
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5. Services
 Private equity
SORTIS Invest assists entrepreneurs in  Venture capital
selecting and securing the most  Mezzanine loans
appropriate type of financing for their  Bank loans and other debt capital
investment plans through  Leasing
 EU grants funding
 Mergers & acquisitions
Investment banking services to
corporate clients include  Corporate finance
 Company restructuring
 Telecom, Media and Technology
 Energy
Identify attractive investment  Financial services
opportunities for investors in various  Food & Beverage
sectors including  Retail & Trade
 Healthcare
 Transport, etc
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6. Private Equity
 In a private equity or venture capital deal the investor:
 Buys shares in the investee company
 Does not receive regular installments like interest on loans
 Assumes part of the business risk of the entrepreneur
 Makes money only when the entrepreneur also makes money
 Looks for profitable and cash-flow positive companies
Buyout Funds “Business Angels”
Equity Sources of Strategic
Investors
Investors
Title
Funding
Private Equity Venture Capital
Funds Funds
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7. Venture Capital
 Venture Capital is given to start-up or early stage growing companies
that need external financing in order to continue their expansion
Investment Strategy aligned with business life cycle
Market value
of the portfolio company
Venture Capital
Time / Life cycle
of the portfolio company
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8. Mezzanine Loans
Mezzanine financing is a way of attaining financing without
ceding ownership of the company. It is a blend of traditional
debt financing and equity financing, reaping benefits of both
Mezanine financing, unlike traditional bank loans, is an
unsecured debt, requiring no collateral
Like debt, mezzanine financing is very fluid and does not
necessarily involve giving up an interest in the company
Very high interest rates - often in the 20-30% range
Lenders often have the right to convert their stake to equity
ownership in the event of a default on the mezzanine loan
Mezzanine financing facilitates bank financing for the project, as
it is subordinated to the senior debt
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9. Project Finance
 Project Finance is financing for a particular project (such as a mine,
toll road, railway, pipeline, power station, etc.) which is repaid from
the cash flow of that project
 The financier principally looks at the assets and revenues of the
project in order to secure servicing of the loan on a stand-alone basis
 Little or no recourse to the non-project assets of the borrower or the
sponsors of the project
 The credit risk associated with the borrower
is not as important as in ordinary loan
transactions
 Identification, analysis, allocation and
management of every risk associated
with the project is of paramount importance
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10. Corporate Finance
 SORTIS Invest helps its Corporate Finance Services Provided
corporate finance clients to
maximize the value of their
companies while keeping an Business sales
Mergers and
&
Acquisitions
eye on the firm's financial risks disposals
 SORTIS assists companies in
their strategic choices aimed Public company Management Debt –raising &
at growth, market penetration & buy-outs restructuring
take-over advice & buy-ins advice
and/or exit
Valuations,
Strategic fairness
alliances opinions and
appraisals
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11. EU Grants Funding
 SORTIS Invest assists companies in obtaining
grant financing from EU’s Operational
Programmes that are active in Bulgaria
 The SORTIS EU Grants services include:
 Eligibility evaluation
 Competent choice of the most appropriate scheme for the Client’s
project
 Preparation of a professional business plan and financial model that
demonstrate explicitly the project’s business sense and profitability
 Putting together the physical application and organizing all necessary
documentation
 Assistance in attracting the needed co-financing – securing 100% of the
investment required to implement the project
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12. Approach
 Before taking a mandate SORTIS Invest makes an internal assessment
of the project in order to determine its:
 Feasibility
 Bankability and finance-ability
 Project Sponsor’s creditworthiness
 SORTIS Invest suggests a financing structure, which best serves the
interests of the entrepreneur and also meets the investment policies
and requirements of potential investors
 Equity
 Mezzanine loans
 Project financing
 Credibility and trust are a main factor in the decision making process
of all financial investors
 Investors heavily rely on the discretion of SORTIS Invest in selecting and
proposing them high-quality projects
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13. Pre- & Post- Investment Support
 SORTIS helps its advisory clients determine and
refine a winning business strategy and then
implement it
 Business strategy is determined based on
assessment of the Client’s competitive position
and taking into consideration global and local
market conditions and long-term trends
Project Analysis Methodology
Competitive
advantage of
the client
Project
Problem areas
characteristics
Strategic
Market trends
positioning
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14. Investment Funds
 SORTIS Invest has built up extensive network of 130+ investment funds
in Europe, North America, Middle East and Asia
Business
Angels
Venture
Capital
Seed
Capital
Private
Equity
Mezzanine
Buy-outs
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15. Funds’ Investment Criteria
 Partnering funds of SORTIS Invest bring to companies and businesses
exposure to a broad variety of investment criteria:
Equity Investment Sectors on Ownership Transaction
Investment Horizon Focus Stake Types
Size
Telecom
Media Buy-outs,
IT Growth capital,
From deals of
Energy Seed capital,
less than Usually 3 to 7
Financial Services Controlling, Early stage,
€ 1mln equity years,
Food & Beverages majority or Special situations
to large maximum
Healthcare minority stakes Turnaround
transactions 15 years
Transport Mezzanine
of € 150+mln
Retail Secondaries
Manufacturing etc.
Other
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16. Strategic Investors
 SORTIS Invest has also created a network of strategic corporate and
individual investors that could convey to companies and businesses
substantial benefit
 Adding value to investments
 Industry and business know-how
 Brand name recognized in many countries
 Marketing, operations and sales expertise
 Training to company employees and management
 Industry and personal connections beneficial for bringing in additional
capital and/or assisting with the sale of the company's products and
services
 Strategic partners that operate in major industries such as healthcare,
telecommunications, technology, retail, food processing, beverages,
transport, etc.
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17. Management
Mr. Martin Paev, CFA
Born 1975, Bulgarian
Owner and General Manager
10 + years of investment banking, M&A and Educated in Bulgaria, the Netherlands and
asset management experience Germany
Master’s degree in Banking and Finance
ING Barings - Frankfurt/Main (Germany)
Bachelor’s degree in Business Administration
ETEBA - investment banking arm of National
Bank of Greece CFA® Charterholder
Balkan Advisory Company - independent
investment banking boutique in SE Europe Served two mandates as Board member of
the Bulgarian CFA Society
TBI-BAC REIT - structured the first Real Estate
Investment Trust in Bulgaria and acted as the Board Member of the Alumni Club at Faculty
REIT’s Executive Director of Economics and Business Administration of
ADDRESS Invest – Executive Director Sofia University
Real estate investment management
Established SORTIS Invest – investment
banking boutique in November 2006
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18. Key Team Members
Dimcho G. Dimitrov Krasimir Goranov
Investment Banking Associate Investment Banking Associate
Experienced in investment analysis, project
Experienced in strategic market research, and company valuations, hedging and risk
analysis and forecasting, new product control and portfolio management
market sizing through financial modeling and
Senior Financial Analyst
company due diligence on M&A
Q Investments, L.P., a privately-held hedge
transactions
fund with $2.7B of assets under management
Strategic Analyst Financial Analyst
W. R. Grace & Co., a $3B public specialty Bear Stearns & Co.
chemicals company Financial Analyst
William C. Connor Educational Investment
Master of Business Administration (MBA) Fund
Northeastern University, Boston, USA Bachelor Degree in Finance & Accounting
Texas Christian University, Fort Worth, USA
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19. Track Record
Selected private equity and venture capital deals:
Speedy Net
WiMax Telecom Operator LAN Internet Provider Risk Management Software
Investor: Dekol Investor: Advance Equity Investor: New Europe
Holding Venture Equity (NEVEQ)
Amount: n.a.
Amount: € 4,000,000 Amount: $ 5,000,000
Financial Advisor to
Atlantis.bg (Project Sponsor) Financial Advisor to Financial Advisor to
Speedy Net FinAnalytica
August 2007 December 2007 March 2008
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20. Contacts
Mr. Martin Paev, CFA
General Manager
E-mail: paev@sortis.bg
Cell: +359 88 50 50 200
49 Madrid Blvd., Floor 1 Tel: +359 2 943 90 70
Sofia 1505, Bulgaria Fax: +359 2 943 90 71
www.sortis.bg
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