Investment Opportunities in Emerging Europe

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Investment Environment (M&A trends and business opportunities)in the emerging European economies of Central and Eastern Europe. Presented at the NYU/Stern Business School Global Business …

Investment Environment (M&A trends and business opportunities)in the emerging European economies of Central and Eastern Europe. Presented at the NYU/Stern Business School Global Business Conference in February 2010.

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  • @rajtarani This is by far the Best, and Most promising Investment Opportunity in the world!! Go to the website below...

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  • WE ARE INTERESTED TO KNOW ABOUT INVESTMENT OPPORTUNITIES IN EMERGING MARKETS IN EUROPE WITH FACILITIES , AND INVESTMENT OPTIONS
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  • 1. 10th Global Business Conference: “Diverse Opportunities & Innovation in Emerging Markets” Diverse Opportunities & Innovation in Emerging Markets Emerging Market Opportunities in Europe Emerging Market Opportunities in Europe Pete Chatziplis, CFA, ACCA, CF NYU Stern School of Business Kimmel Center, New York February 19, 2010
  • 2. Central & Eastern Europe Snapshot 180 million people, 17 countries High projected GDP growth Low public debt GDP per Capita across Europe Low taxes; updated business p framework Skilled workforce/some bottlenecks Low wages but rising Negatively affected by the economic crisis Aging Infrastructure National/cultural sensitivities >€10,000 non EU Source: IMF data NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 1
  • 3. Global M&A Activity Global M&A plummeted in 2009 to $1.6 trillion total value: – North America: signs of stabilization –EEurope: staggering d t i drop t pre-2004 l to 2004 levels l – Asia: resilient; increase in importance PE deals negatively affected; “credit crunch” Decrease in mega-deals; emergence of middle market Sectors: energy, financials, TMT, pharma, industrials 4,000 $3,700m 50% $3,590m 45% Global M&A Deal Value 3,500 $440m12% $180 5% $431 12% 40% 3,000 $410m11% $2,460m 35% Rest of World 2,500 , $153 6% 30% Asia Pacific Asia-Pacific $1,400 $1,400m $396 16% $1,550 m 25% Europe 2,000 38% 39% NorthAmerica 1,500 $80 5% 20% $1,076 $340 22%15% 1,000 44% $440 28% $1,450m $1,580 10% 500 39% 44% $839 5% $700 34% 45% 0 0% 2006 2007 2008 2009 Source: Mergermarket, Deal Drivers North America, Europe 2006-09. NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 2
  • 4. Central & Eastern Europe M&A Activity M&A deal value $40 bn in 2009 (recovered but below past levels) – Approximately 10% of total European M&A value – Middle Middl market f k t focus: 45% d l l deals less th €100 than €100m – Investors: France, US, Nordic, UK, Germany, Benelux, Italy, Greece – Sectors: TMT 42%, Energy & Mining 33%, Consumer 9%, Financials – Major PEs and multinationals active in the region M&A Value in CEE & CIS M&A by sector in CEE & CIS Source: Mergermarket, Monthly M&A Insider, Source: Mergermarket, Monthly M&A Insider, December 2009 December 2009 NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 3
  • 5. Top 2009 CEE M&A Deals • Kyivstar GSM – VimpelCom € 9.7 bn TMT • MangistauMunaiGaz - Mangistau Inv. BV € 2.6 bn Energy/Mining/Utls • BTA Bank JSC - Government of Kazakhstan € 1.6 bn Financials • Anheuser-Busch InBev (CE) - CVC Ptns Ltd € 1.5 bn Consumer • MOL Oil and Gas - OJSC Surgutneftegaz € 1.4 bn Energy/Mining/Utls • Intern’l Power Opatovice- J&T Finance AS € 0.9 bn Energy/Mining/Utls • Refinery Company RT - TH KazMunaiGaz € 0.8 bn Energy/Mining/Utls • Kompania Piwowarska - BMiller Plc € 0.8 bn Consumer • Invitel Holdings -Mid Europa Partners Mid € 0 7 bn TMT 0.7 • KazMunaiGaz PKI Finance -JSC KazMunaiGas Exploration € 0.6 bn Energy/Mining/Utls Source: Mergermarket, Monthly M&A Insider, December 2009 NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 4
  • 6. CEE PE Activity- Recovery in Confidence CEE PE Confidence Index Activity plummeted in line with global markets during 2ndH 2008 but since then recovered More cautious M&A moves; capital Source: Central European Private Equity Confidence Survey, Deloitte, October 2009 poured in “too fast too far” in the past PE activity in CEE & CIS Rationalization in valuations Value of deals (€ mn) Economical € development and modernization to drive M&As and FDI Source: Mergermarket, Monthly NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 M&A Insider, December 2009 5
  • 7. Top 2009 PE Investment in CEE Est. Value PE house Company y Country y Period Stake (Euro mn) EQT Partners AB HTL-Strefa S.A. Poland October 2009 210.4 100% Anheuser-Busch InBev’s CVC Capital Partners CEE-wide CEE wide October 2009 1,500 1 500 n/a CEE operations September Mid Europa Partners Invitel Holdings A/S Hungary 740.2 65% 2009 - pending GED Iberian PE SC Total Eurobusiness SA Romania August 2009 6.0 60% EQT Partners AB CableTel AD Bulgaria August 2009 n/a 100% SGAM AI PE Konsalnet SA Poland July 2009 22.1 80% Fabryka Lin i Drutu Drumet Penta Investment Ltd Poland June 2009 26.5 26 5 n/a Sp. z o.o. Enterprise Investors Web Inn Poland June 2009 3.6 100% Enterprise Investors R&C Union Poland May 2009 3.0 47.9% Mid E Europa P t Partners UPC Sl Slovenia i Slovenia Sl i May M 2009 n/a / 100% Source: Central European Private Equity Confidence Survey, Deloitte, October 2009 NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 6
  • 8. CEE Market Expectations Economic Climate Unavailability of debt financing; slowdown in new PE fund raising Average transaction size decreased; middle size companies gaining attention Interest in distressed New investments competition transactions First round of large privatizations completed; national sensitivities and economies’ structure to b dd t be address i f t in future Source: Central European Private Equity Confidence Survey, Deloitte, October 2009 endeavors NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 7
  • 9. Market Opportunities Energy (growth, efficiency, renewable) Financials (lending) Telecoms (new technologies) Consumer (rise of middle class) Outsourcing (good workforce, European time zone and proximity) Manufacturing (capacity diversification) Logistics (central location) Health (aging) Leisure & Tourism (services upgrade) Adjust to local circumstances but think global! Adj t t l l i t b t thi k l b l! NYU Stern, 10th Global Business Conference: Emerging Market Opportunities in Europe, Pete Chatziplis, New York, February 19, 2010 8