Natalia Meylunas - Head of Regional Programme, Small Business Support Team at EBRD


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PartnerIT 2012 - matchmaking B2B event & FundraiseIT - conference and investment evening
15. – 16. November 2012.
Belgrade, Serbia

The PartnerIT is a international B2B matchmaking event organized by Outsourcing Center Serbia, followed by the FundraiseIT conference organized in partnership with Serbian Business Angels Network (SBAN) and other partners.

B2B matchmaking event
On, you have the opportunity to leave your profile and book your face-to-face meetings with other international companies and research institutions. This is a cost and time-effective way to discover new business and cooperation opportunities while expanding your contact network. All profiles will be published online and will be extensively promoted before the event and could still be viewed after the event.

FundraiseIT conference
During the conference you will be involved in the direct communication channel with competent well-known serial entrepreneurs and investors from Silicon Valley and Europe. In the live discussions panels among successful entrepreneurs and investors you will be able to hear some interesting personal stories, information about various investing models, fundraising methods, success stories, experiences and valuable tips.

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  • Natalia Meylunas - Head of Regional Programme, Small Business Support Team at EBRD

    1. 1. EBRD supportto private enterprises in Serbia November 2012
    2. 2. EBRD in Serbia• Country of operation since 2001• Total cumulative commitments of €3.16bn as of September 2012 - Private sector participates with 50% in total cumulative commitments• Total outstanding portfolio of €2.39bn, consists of 141 active operations• Team of 22 people in Resident Office in Belgrade• Objectives are to promote a sound investment climate, good corporate governance and stronger institutions
    3. 3. Serbia: Total CumulativeCommitments Composition (€ m) 481 15% 1,087 34% 745 24% 845 27% Infrastructure Financial Institutions Industry, Commerce and Agribusiness Power and Energy
    4. 4. Serbia: Total Cumulative Commitments Composition (# of operations) 10 22 5% 11% 86 44% 79 40% Industry, Commerce and Agribusiness Financial Institutions Infrastructure Power and Energy
    5. 5. Serbia: Portfolio Development€m No. of operations700 35 31600 28 30 24500 25 21400 20 15300 15200 10100 5 216 127 444 598 526 - - 2007 2008 2009 2010 2011 Annual business volume Number of operations
    6. 6. Serbia: 2011 Operations Composition (€ m) 60 12% 202 38% 128 24% 137 26% Financial Institutions Industry, Commerce and Agribusiness Power and Energy Infrastructure
    7. 7. Serbia: 2011 Operations Composition (# of operations) 2 7% 3 11% 13 46% 10 36% Financial Institutions Industry, Commerce and Agribusiness Power and Energy Infrastructure
    8. 8. Local Enterprise Facility (LEF)
    9. 9. What is LEF?• Established jointly by the EBRD and the Italian Government in 2006• A delegated facility for equity, quasi-equity investments and tailor- made debt financing• Investment region encompasses Western Balkans, Turkey, Bulgaria and Romania - Extension to South, Eastern and Mediterranean region (SEMED) is proposed• Developed to support financing needs of dynamic local enterprises
    10. 10. LEF Snapshot• €270m of capital provided jointly by the EBRD (€250m) and the Italian government (€20m)• Total cumulative commitment of €184m, out of which € 146.4m (83%) disbursed Number of LEF Deals in Western Balkans Project Composition (% of total signings)
    11. 11. Key LEF Objectives• Enhancing competitiveness and product quality by strengthening market competitiveness and improving the quality of goods and services provided• Restructuring by introducing new, replicable products and technologies to achieve better use of labour, higher productivity and efficiency improvements• Setting standards for corporate governance by encouraging investee companies to apply higher standards of corporate governance and business conduct
    12. 12. LEF Investment Criteria• Eligible investments: expansion, restructuring or acquisitions of existing private businesses• Eligible sectors: a wide range of sectors, with only few exceptions (weapons, liquors and tobacco). All investments must be in line with sound environmental principles• Size of investments: LEF individual investment could amount up to €10m• Target Stake: Minority stake, preferably in the range of 20 to 35% of the capital of the company• Time horizon: a period from 3 up to 8 years
    13. 13. Case Study – Forma Ideale SerbiaCompany Information• Limited liability company• Producer of a wide range of furnitureInvestment Details• EUR 5+2 million equity investmentPurpose of investment• Construction of a modern warehouse and logistics centre• Restructuring of the company’s balance sheet
    14. 14. Investment Process Pre-Investment phase (from 3 to 9 months) Mandate Letter Term sheetPreliminary Due Diligence and ScreeningDiscussions Structuring Entrepreneurs  EBRD and outside  Final Decision Initial meetings  of the and site visits provide information consultants conduct about their company technical, Investment Discussions on and the project environmental, legal Committee mutual interest for and financial due cooperation  EBRD Bankers diligence on the prepare a Screening company and the Memorandum for project approval by the Investment  Bankers and Sponsor Committee define and agree on the transaction structure and valuation/ pricing
    15. 15. Investment Process (Cont’d) Post-Investment phase (from 3 to 8 years) Management andInvestment Exit Monitoring Legal  EBRD appoints a  Decision of the  EBRD sells its stake in Agreements are member of the Board Investment the Company in one of drafted and of Directors (if agreed) Committee to the following ways: executed exit its  EBRD could hire (if investment in the  trade sale Subscription and needed) consultants company (the  sale back to the disbursement to assist the company timing is usually entrepreneur take place in its project coordinated with implementation the  IPO Company provides entrepreneur)   secondary buy- EBRD with regular out updates on financial performance and  re-leveraging of project progress the Company
    16. 16. SME financing through EBRD partner banks
    17. 17. SME Financing Provided ThroughCredit Lines to Local Banks• Improve access to longer term finance for private enterprises for urgent capital investments, as well as working capital;• Facilitate upgrades of SME operations towards EU production standards;• Promote sustainability and competitiveness of the SME sector through crisis and beyond;• Capacity building at the level of participating banks to assess and finance environmental investments.
    18. 18. Partner Banks We Work With inFinancing the SME Sector• Banca Intesa Beograd• Komercijalna Banka• Societe Generale• Unicredit Bank Serbia• Alpha Bank Serbia• Erste Bank Serbia• Cacanska Banka
    19. 19. Small Business Support –Building stronger business
    20. 20. EBRD fosters entrepreneurship by providing business expertise in addition to financing• EBRD’s Small Business Support (SBS) has been SBS at a glance helping Micro, Small and Over €200m donor Medium sized Enterprises funding (MSMEs) since 1993 1,970 EGP projects• 2 instruments: the Enterprise Growth Programme (EGP) 11,700 BAS projects and Business Advisory Over 750 market Services (BAS) development activities• Run on a not-for-profit basis with donor funding in 24 countries
    21. 21. EGP brings international know how,whilst BAS fosters local expertise EGP supports the introduction BAS assists individual of international best practice in enterprises to engage with small and medium-sized local consultants on a cost enterprises with the potential of sharing basis through narrowly- becoming future leaders in based, specific projects with a their market through the rapid payback. It also directly placement of international increases the supply and advisors with at least 15 years quality of local advisory of professional experience and services, through targeted expertise in the specific market development activities, business sector. to create a sustainable market of support for the small business sector.
    22. 22. Transition from Entrepreneurial to aProfessional Company
    23. 23. EGP Methodology • Project lasts 12-18 months, visits every 6-8 weeks • Experienced senior executives work with CEOs and management teams • Project team consists of Senior Industrial Advisor (SIA), Specialist(s) and Team Coordinator / Local Manager • Scope tailored to the needs of the individual enterprise • Typical areas: General management, Sales and marketing, Financial and strategic planning, Attract finance, Organisational restructuring, Production and design, Export opportunities, International standards
    24. 24. EGP Enterprise criteria • Medium size enterprises, normally >100 employed, >€1 million t/o • All sectors, except banking and financial services, military products/services, gambling, tobacco and hard liquors • Private, majority locally owned businesses with significant importance for the local economy • Acceptable debt structure, potential to be commercially viable in the longer term • Strong commitment to undergo restructuring / development programme agreed • Willing to co-share minimum 10% of total project cost (~ €5,000)
    25. 25. BAS Methodology • Narrowly defined projects with shorter duration (depending on the type of business advice) • Advisory services provided by local consultants, qualified by BAS (over 110 in the database, regularly updated) • Types of business advice supported: everything, except tax and legal. Examples: market analysis, business plans, introduction of QMS, design and implementation of IS, energy audits, reorganization and HR development etc. • BAS contributes 25-75% of the total net project cost capped at € 10,000. BAS grants are post-transactional - they are paid only upon successful completion of the project. • BAS team screens applicants, assists with selection of consultants and development of ToR. Once a project is approved by a Head of Regional Programme and the consultancy services contract is signed between the beneficiary enterprise and a consultant chosen, an Agreement for Payment of a Grant for Business Advice ("Grant Agreement") is signed. BAS monitors project implementation
    26. 26. Criteria to qualify for BAS assistance • Size: up to 500 employees (with the key target group under 50 employees) • Ownership: Be majority privately and locally owned. • Area of activity: Operate in all sectors except banking and financial services, military products or services, gambling, tobacco. • Viability: Be able to demonstrate potential for growth, • Management attitude: Be open to cooperate with BAS and the consultant. • Respectability/Integrity: Enterprise and management are credible and respectable. • Experience with external consultancy services: Have a genuine need for business advice and a capacity to absorb the assistance given yet little or no previous experience of using external consultants, and/or do not have resources to finance a complete project
    27. 27. EGP and BAS in Serbia EGP BAS•Started in 2001 •Started in 2006•Over 180 projects, 3 ongoing •329 projects projects, 26•Funded by EU, Italy, Austria, ongoingDenmark, UK, Taipei China •Funded by the Netherlands,•Key sectors – wood EU, EBRD, Taipei Chinaprocessing, textile, chemical, •All sectors, leading – food andelectrical equipment, food beverages, metals andprocessing machinery•66.7% reported increase in •67% BAS clients reportedturnover increase in turnover, 34% have•EBRD investments over 10 attracted investment, over 2/3mio EUR continue using consultancy
    28. 28. BAS in Serbia Feasibility Studies 4% Reorganisation/Restructu ring Environment 15% 5% Computerised Financial/Management T o Introduce Quality Information System Management & 20% Certification 40% Market Analysis & Planning Energy efficiency 9% 1% Development Planning 6%
    29. 29. SBS supports ICT enterprises - A business matching trip to Taipei China(June 2012) • Participants: Active senior-level executives from leading ICT companies (5 per country from Western Balkans) • Serbian participants: Orion telekom Srbija, Belgrade (Telecom Operator) Megatrend DOO, Nis (ICT - Design and development of information systems) Enel PS, Belgrade (ICT Infrastructure - UPS, Cooling systems, management, racks) CIM grupa DOO, Nis (ICT & Management Consulting) Logo, Belgrade (Fiber optic, solutions in ICT) • Objective: Explore business matching opportunities, create linkages with other companies in the same industry, exchange knowledge and foster potential import and export links and franchising opportunities.
    30. 30. BAS Serbia support to ICT sector • 67 SME’s were supported for projects in the field of ICT (Management/Financial and Manufacturing Computerised Systems Implementation) • 31 SME’s from ICT industry received BAS grants • 32 consulting ICT companies are registered in BAS database • 2 Market Development Activities designed and implemented with the goal to enhance development of ICT sector - ICT Business Incubator (6 start-up companies as participants) - Project management training (33 participants)
    31. 31. Contact InformationEuropean Bank for Reconstruction and Development Bulevar Zorana Djindjica 64a 11070 Novi Beograd Serbia Tel: +381 11 21 20 530 Fax: +381 11 212 0534