RUSNANO's CEO Anatoly Chubais' presentation for Asian investors
1. Anatoly Chubais,
Chief Executive Officer
RUSNANO:
Leading High-Tech Investor in Russia
October 3, 2012
2. Russia’s Attractive Investment Proposition
Attractive macroeconomic outlook… …on its way to modernisation…
20,0%
Real Gross Fixed Investments as % of GDP
Real GDP Growth 50%
CPI Inflation Average 2012E–2015E
40%
30% 24.6
10,0%
20%
10%
0,0% 0%
Russia
Ukraine
Turkey
Japan
USA
India
S.Korea
China
Germany
Brazil
Kazakhstan
(10,0%)
2007A 2008A 2009A 2010A 2011A 2012E 2013E 2014E 2015E
…supported by technology oriented …and government commitment
human capital… to innovations
Graduates in 2009 (mn) Total R&D Spending, $bn
500
15% 28% 21% 12% 25% 31% 23% 21% 400
3,0
2,1 300
2,0
200
1,0 100 33,4
0,0 0
USA
Japan
Germany
Korea
China
Russia
UK
Italy
France
Russia
Canada
Japan
USA
Ukraine
Turkey
S.Korea
Germany
Brazil
% share of science and engineering majors
2 www.rusnano.com
Source: EIU, UNESCO, Eurostat as of June 2012
3. RUSNANO Group: Introduction
RUSNANO Fund for Infrastructure
Joint-stock company and Educational Programs (FIEP)
non-commercial organization
co-investment in nanotechnology industrial investment in non-financial innovative
projects and investment funds infrastructure and educational programs
Mandate:
- Commercialization of nanotech industry projects;
- Sales of Russian nano-enabled products by 2015 ~ $ 30 bln per year.
Key investment principles
• Investment in businesses that utilise nanotechnology
• Investment either in commercialisation of technologies of Russian origin or in transfer of foreign technologies with
establishment of production and/or R&D in Russia (the “Russian Edge”)
• Balancing return vs technological and market risks
o Focus on companies in the expansion and post-creation stages with occasional start-up financing and no seed / R&D investments
• Mostly minority stake investments
• Value creation at the portfolio company level through active involvement at the BoD level; no day-to-day operational
management of portfolio companies
• Target investment period of 3-5 years
3 www.rusnano.com
4. RUSNANO: Generalist Fund,
Active on Diverse Investment Stages
cash flow
seed
start-up test sales early growth expansion later growth IPO
stage
Death valley
Skolkovo SME BANK Vnesheconombank
FIEP RUSNANO
MICEX
RVC Seed Fund Russian Venture Company
“Bortnik Fund”
4 www.rusnano.com
5. RUSNANO at a Glance
$6.2bn investment fund… …established in 2007…
Investments, $bn Financing, $bn
3.7
3.1
2.1
Outstanding 2.5 $6.2bn 1.1
commitment Committed 6
capital 3.7 Financed
2007 2008 2009 2010 2011 2012 (Sept)
Foundation Bonds issue Private Placement
First investments Spin-off of non-commercial activities
…by the Russian Government… …to invest in nanotechnology-related areas
Funding structure, $bn Investments, %% of total
Others Nanomaterials
Available debt
under government 2.1 17%
21%
guarantees Cash Surface
contribution in modification 7%
$9.5bn 3.4 equity
(100% 17% 21%
Medicine
Debt raised under Government)
4.0 17%
government Optics and
guarantees electronics
Energy efficiency
5 www.rusnano.com
6. Investment Portfolio Snapshot
By type of investment vehicles By project development stages
Financed ($bn) Investments, $bn
5,2
Outstanding commitment ($bn)
1,6
3,3
3,6
1 1,2
0,7
0,9 0,1
Direct Investments Funds
Start-up Post-Creation Expansion/Development
By technology origin By geography of recent production launches
Investments in manufacturing projects, $bn Yaroslavl Region St. Petersburg Udmurtia Irkutsk region
1 launch 3 launches 1 launch 1 launch
3,2
Bryansk region
1 launch
2
Moscow and
Moscow region
6 launches Tomsk Region
1 launch
Russian technology Technology transfer
Tatarstan Bashkortostan Sverdlovsk region Novosibirsk region
1 launch 1 launch 1 launch 1 launch
6 www.rusnano.com
7. What we can do together?
RUSNANO offers Funds could
• Access to the Russian and Foreign • Co-invest in RUSNANO projects
technologies
• Buy-out partially or fully RUSNANO in
• Support to companies entering the technologically appealing projects
Russian market in terms of production
site search, partners, etc. • Participate in RUSNANO private
placement
• Outstanding relations with a number
of Russian regions • Consider portfolio companies expansion
to Russia and encourage them to apply for
• Co-investment RUSNANO financing
• Access to RUSNANO’s scientific and • Encourage portfolio companies to
technical expertise cooperate with RUSNANO projects to achieve
synergies:
in accessing global product and finance
markets
in exits from projects (IPO or selling to a
strategic investor)
7 www.rusnano.com
8. Russian Nanotech: Unique Opportunity
RUSNANO’s focus on Russia’s most attractive high tech markets
Pharma Energy Efficiency
47% 78% 14% 31% 25% 7%
Market size in Russia ($bn)
15
14.00
6
5
4
3.00 2.90
3
2.00
2
1.00 0.97 1.11 0.83 1.07
1 0.20 0.60 0.46
0
Biopharma Vaccines Medical Services Energy Accumulation Energy Harvesting Energy
& Conversion Distribution
Electronics & Optics Construction Materials
61% 19% 98% 86% 16% 15%
15
Market size in Russia ($bn)
8.87
6
5.11
5
4.30
4
3 3.07
2.40
2 1.85
1.20
1
0.46 0.38 0.75 0.12 0.10
0
Integrated Opto- Telecomm. Low Emissivity Thermal Polymers &
Circuits & electronics Glass Insulation Additives
Chips
2011 2015 2011-2015 CAGR (%)
8 www.rusnano.com
9. The most attractive market segments
I. Pharmaceuticals and biotechnology
II. Energy efficiency
III. Electronics, photonics and optics
IV. Construction materials
9 www.rusnano.com
10. I. Pharmaceuticals and biotechnology –
Unique Opportunity
Estimated minimum size of the pharma and biotech sector in 2015 is $4,5 bln. – 78% growth in vaccines is possible.
(BIO)PHARMACEUTICALS
VACCINES MEDICAL SERVICES
(excl. vaccines)
ATTRACTIVENESS > Upside potential > Upside potential > Moderate potential
> Strong CAGR > Strong CAGR > Demand from
> Government > Government commercial
support support segment
+47% +78% max
14,001) max 2,001)
MARKET ‘11-’15 +14%
[USD bn] 1,00
0,50 0,60
3,00 3,00 min 0,20 min
2011 2015 2011 2015 2011 2015
KEY TRENDS > Strong medical need, > Growth of vaccines market > Demand for IVD services is
especially in cardiovascular depends mainly on mainly driven by the
and oncology treatments government plans for commercial sector
> Government aims to localize including new vaccines in > Significant R&D base,
manufacturing due to National Immunization experienced scientific teams
currently high share of Calendar > Clinical trials in Russia are
imported drugs (77%) > Unclear how many and what high quality and less
type of vaccines will be expensive and quicker than
included in the EU/US
1) window of opportunity (potential)
10 www.rusnano.com
11. I. Pharmaceuticals and biotechnology –
Project Examples
FINANCING as of January 2012:
• RUSNANO share of committed capital – $1,1 bn
• Private investors (in cooperation with RUSNANO) – $1,6 bln.
COMPANY PRODUCT TECHNOLOGY
• BioBetter class of pharmaceuticals • Biopolymer polysialic acid
• Novel biotherapeutic molecule for • Histone H1 molecules
PHARMACEUTICALS SynBio the treatment of tumours • Cord blood
• Stem cell medicine
• Flu vaccine Technologies based on pseudo-
VACCINES AND adenoviral nanoparticles
• Treatment of toxic states
MEDICINES • Treatment of ALS
• Device for misc. blood coagulation • Organic nano-layers deposition
DIAGNOSTICS disorders diagnostics • AI imagery recognition
• Disposable units for tests • New diagnostic methods in healthcare
TECHNOLOGY Domain Therapeutic products for the treatment Misc. advanced technologies in biopharma
Associates of cardiovascular diseases, cancer, (new molecules, nanoparticles, polymers,
TRANSFER infectious diseases, ophthalmology, etc. oligomers, combined therapy)
TECHNOLOGY Celtic Pharma Innovative medications in hematology,
endocrinology, cardiology, oncology GMP-standard manufacturing
TRANSFER
11 www.rusnano.com
Source: RUSNANO, Roland Berger
12. II. Energy Efficiency Sector –
Unique Opportunity
Power generation and energy accumulation will drive the sector up to $8 bln. in 2015
ENERGY
ENERGY POWER ENERGY
HARVESTING
ACCUMULATION GENERATION DISTRIBUTION
AND CONVERSION
ATTRACTIVENESS
> High potential > Upside > Moderate > Stable
> Strong CAGR potential potential potential
> Government > Huge future > Strong CAGR > Moderate
support market share > Government CAGR
support
MARKET 2011- +31%
+25% +7%
2015 [USD bn]
3,16
2,90 1,11 1,07
0,97 0,46 0,83
2011 2015 2015 2011 2015 2011 2015
> Opening up of the > USC technology > Growth driven by > Growth driven by
KEY TRENDS electric vehicles power stations will overall growth of import substitution
market be built in Russia advertising and for power
> Growth in demand from 2015 construction markets transformers and
for accumulators for > Technology will > Growth rate of non- high level of overall
power distribution account for more residential property investment in energy
companies than 30% of total market 2011-2015 is > Industry leaders plan
power capacity 18.6% to localize
installed transformer
production in Russia
12 www.rusnano.com
Source: RUSNANO, Roland Berger
13. II. Energy Efficiency Sector –
Project examples
FINANCING as of January 2012:
• RUSNANO share of committed capital – $0,9 bln;
• Private investors (in cooperation with RUSNANO) – $1,28 bln.
COMPANY PRODUCT TECHNOLOGY
Accumulators for electric
ACCUMULATORS Liotech vehicles and energy High capacity lithium-ion batteries
sector
Carbon microwave steam activation of
SUPERCAPACITORS Nesscap High-capacity energy
nanopore electrode structures
Energy Inc accumulators
Fiber optic metering Nanostructured fiber-based optic current
TRANSDUCERS and voltage measurement and monitoring
Profotech systems for power
grids sensors
PHOTOVOLTAICS Hevel Solar modules Thin film technology
13 www.rusnano.com
14. III. Electronics, photonics and optics –
Unique opportunity
The electronics and photonics sector is highly attractive for investors – Estimated market potential of $5,7 bln
in 2015
INTEGRATED CIRCUITS
OPTOELECTRONICS TELECOMMUNICATIONS
AND CHIPS
ATTRACTIVENESS
> High potential > Moderate potential > Stable potential
> Strong CAGR > Moderate CAGR > Moderate CAGR
> Government support
MARKET 2011- +61% +98%
2015 [USD bn] +18%
0,46
3,07 0,38 1,85
0,75 0,12
2011 2015 2011 2015 2011 2015
KEY TRENDS > Many areas of application, > Market is driven by LED, > Massive market growth
including transportation, which will mainly be used mainly due to transition of
KEY TRENDS pharmaceuticals, logistics, for lighting systems mobile operators to 4G
etc. > Government support via the networks by applying LTE
> Massive government restriction of incandescent base stations
support via ERA GLONASS light bulbs and changes in > Growth in fiber channel
project and implementation construction rules involving market is moderate and
of RFID in all pharma the use of LED in new driven by the increasing
products, transportation and buildings number of broadband
postal systems service users
14 www.rusnano.com
Source: RUSNANO, Roland Berger
15. III. Electronics, photonics and optics –
Project examples
FINANCING as of January 2012:
• RUSNANO share of committed capital – $1,1 bln.
• Private investors (in cooperation with RUSNANO) – $1,98 bln.
COMPANY PRODUCT TECHNOLOGY
Fiber lasers and
PHOTONICS NTO IRE- telecommunications Fiber lasers
Polus equipment in Russia
OPTOELECTRONICS Light emission High-brightness light-emitting diodes for a large
Optogan
diodes variety of applications
ELECTRONICS Crocus Tech- Magnetoresistive Innovative memory production technology
nology SA memory
15 www.rusnano.com
16. IV. Construction materials –
Unique opportunity
Total market volume of the sub-sectors with the biggest commercial potential is ~$14,6 bln
LOW EMISSIVITY THERMAL POLYMERS AND
GLASS INSULATION ADDITIVES
ATTRACTIVENESS > Large market
> Strong CAGR > Large market volume
> Massive market volume > Stable market
potential > Stable market growth
growth > Increased
application of
new materials
MARKET 2011-2015 +15%
+86% +16%
[USD bn]
4,30 8,87
0,10 1,20 2,40 5,11
2011 2015 2011 2015
2011 2015
> Tighter regulations on > Overall construction > Growth driven by
KEY TRENDS thermal resistance of growth and changes in overall construction
windows for new energy effic'y growth
buildings from 2016 regulations for new > Good prospects for
> Share of low emissivity buildings are driving increased application
glass expected to grow market growth of new materials
> Great need for (composites, nano-
insulation for additives, etc.)
refurbishing existing
residential stock
16 www.rusnano.com
Source: RUSNANO, Roland Berger
17. IV. Construction materials –
Project examples
FINANCING as of January 2012:
• RUSNANO share of committed capital as per January 2012– $0,46 bln
• Private investors (in cooperation with RUSNANO) – $1,0 bn
COMPANY PRODUCT TECHNOLOGY
LOW EMISSIVITY Glass magnetron
STiS Low emissivity glass spattering in metal-oxide
GLASS
nanofilm vacuum
Composite Reinforcement of polymer with
COMPOSITES Galen reinforcement and basalt fibers
fittings
Additives for Devulcanized rubber nanoparticles for
ADDITIVES Unicom bituminous concrete bituminous concrete and asphalt additives
and asphalt production
17 www.rusnano.com
Source: RUSNANO, Roland Berger
18. Best-In-Class Partners to Ensure
Commercial Focus
Strategic Partners Russian Financial Partners Development Institutions
International Funds and Financial
Regional Governments
Institutions
Moscow Belgorod
St. Petersburg Penza
Tatarstan Ulyanovsk
…and 26 more
18 www.rusnano.com
19. Demand Promotion - Important Step to
Develop Russian High-tech Market
• Russia has huge government related entities in energy, telecommunications, car
production and transportation sectors, which annual investment programs exceed
$10 bln. This is one of the prominent consumers for high-tech products and solutions
• RUSNANO works closely with potential consumers of nanotechnology products to
educate them and explain the efficiency behind high-tech solutions
19 www.rusnano.com
20. RUSNANO is a Catalyst for the Commercialization and
Growth Stages High-tech Investments in Russia
RUSNANO actively cooperates with financial and strategic investors to co-finance nanotechnology
projects
• Leveraging strong relationships and administrative support of local governments, RUSNANO is
able to realize green-field projects in any region of Russia depending on geographical needs and
required resources;
• Strategic investors including the largest Russian industrial groups provide equity and debt
financing, production sites, technology and intellectual property for project companies;
• Russian and foreign Private Equity & Venture Capital funds find it attractive to co-invest in
nanotechnology projects.
20 www.rusnano.com