FINANCIAL RESULTS OF GK PEM FOR H1 2016 WARSAW, 18 AUGUST 2016 - PowerPoint PPT Presentation

Venture Debt Fund July 2015 FINANCIAL RESULTS OF GK PEM FOR H1 2016 WARSAW, 18 AUGUST 2016

Agenda p  TSR – our offer for investors  Prospects for the funds and new initiatives  Financial results H1 16  Changes in accounting policy  New investments 2

D I V I D E N D 2016 p  PLN 14.41 per share  dividend yield of 12.8%  net profit of 98%  PLN 8.00 on 15 July PLN 6.41 on 30 September 3

We build value for our shareholders through dividend distribution and share price increase p TSR 19.6 % 40,0% 40.0% 30,0% 30.0% 20,0% 20.0% 23.8 % return rate for the PEM shareholders who acquired PLN 132.75 shares during the IPO comes 10,0% 10.0% from dividends -4.2 % return rate for the PEM PLN 106.30 shareholders who acquired 0,0% 0.0% shares during the IPO is due to change in share price -10,0% -10.0 % -12.2 % – return rate for WIG index in the same period => PEM relatively -20,0% -20.0 % better than the market average – by 31.7 pp -30,0% -30.0 % PEM PEM PEM TSR PEM TSR WIG WIG 4

Total value of dividends paid was PLN 159m p 159 49 37 73 523 364 Data in PLN million mkt cap (bez dywidend) dyw. z zysku 2013 dyw. z zysku 2014 dyw. z zysku 2015 łączna wartość mkt cap (without dividends) div. from 2013 profit div. from 2014 profit div. from 2015 profit total value 5

Agenda p  TSR – our offer for investors  Prospects for the funds and new initiatives  Financial results H1 16  Changes in accounting policy  New investments 6

MCI.EuroVentures – history likes to repeat itself p  Share of the new investments in the current structure of the MCI.EuroVentures fund is nearly 40%  ATM, Dotpay, eCard, Lifebrain – investments with a high growth potential and a high likelihood of re-occurrence of historical returns  The fund’s historical track record is the return rate of 2.5 to 4.0x CoC; on average within 4 years =>> 25% IRR Valuation + div. Amount Amount invested invested PLN 711m 3-5 PLN 330m PLN 270m CoC years 2.5-4x p Average maturity 4.3 years 7

MCI.TechVentures – the fund with ‘rising stars’ p Companies with a potential for rapid Strong regional leaders growth at European level since 2011 since 2015 since 2012 since 2015 since 2015 since 2015 This is the company that earned us 46% IRR for investors Events that may contribute to further increase in the business value of the companies involved in digital economy Conclusion of the sales process IPO and stock exchange valuation UBER Allegro 8

We are launching new investment products to reconstruct the PEM revenue structure to achieve a larger share of a fixed p management fee Baltic Fund Fintech Fund  The fund dedicated to companies from the fintech sector  Region: PL and the Baltic countries  Rapid development of the fintech sector in the field of  Up to 5m, A-B round digital economy  In contrast to Western Europe, the target area suffers from  PEM staff has extensive experience in the field of fintech a noticeable lack of investment capital for technology and banking plus cooperation with other funds companies that would normally be provided by  Up to EUR 10m, A-B round investment funds with long-term track-record in building  Region: Europa regional market leaders MCI.CreditVentures Fund of Funds  Extending the equity financing offer to include mezzanine  The fund investing in the mix of certificates: debt financing for technology and growth companies MCI.TechVentures, MCI.EuroVentures and MCI.CreditVentures (venture debt)  Underlying instruments: mezzanine/venture debt,  Faster and easier process, lack of excessive dilution, private equity in growth and buyout models improved balance sheet structure  Geographical location: PL, UK, DACH, Turkey, Russia  Up to EUR 10m  Business models: e-commerce, fintech, big data, IoT,  Region: PL and CEE distribution, TMT 9

Agenda p  TSR – our offer for investors  Prospects for the funds and new initiatives  Financial results H1 16  Changes in accounting policy  New investments 10

Profit from cash transactions in H1 ’ 16 amounted to approx. PLN 10m p  In H ’ 16, PEM reported revenues of PLN 22.9m . This represents 40% of the revenue recorded for H1 ’ 15 due to the lack of a variable fee  A fixed management fee, due to higher assets under management, increased by 13% to PLN 20.8m; with a profitability ratio of 2.3% relative to the net asset value generating this fee PLN'000 1H'16 1H'15 % zmiany 1Q'16 1Q'15 % zmiany H1 16 H1 15 % change Q1 16 Q1 15 % change PLN’000 Opł. stała za zarządzanie 20 778 18 354 9 936 8 548 13% 16% Fixed management fee Opł. zmienna za zarządzanie 1 775 38 772 472 16 664 Variable management fee (95)% (97)% Pozostałe przychody 378 429 170 183 Other revenues (12)% (7)% Przychody Razem 22 931 57 555 (60)% 10 578 25 395 (58)% Total revenues Koszty działalności podstawowej (4 889) (3 437) (2 247) (1 199) Costs of core activities 42% 87% Koszty operacyjne (10 375) (20 880) (3 153) (6 401) Operating costs (50)% (51)% Koszty finansowe netto Net financial costs (2 488) (1 401) (850) (374) 78% 127% Koszty Razem (17 752) (25 718) (31)% (6 250) (7 974) (22)% Total costs Podatki 1 359 2 237 578 (52) Taxes (39)% n/a Net profit Zysk netto 6 538 34 074 (81)% 4 906 17 369 (72)% Zysk netto na akcję 1,96 zł 10,22 zł 1,47 zł 5,21 zł Net profit per share (81)% (72)% % Zysk netto / Przychody z zarządzania 29,0% 59,6% 47,1% 68,9% n/a n/a n/a n/a % Net profit / Management revenues % Koszty sprzedaży / Przychody z zarządzania 21,7% 6,0% 21,6% 4,8% % Cost of sales / Management revenues n/a n/a n/a n/a WAN łącznie 2 158 888 1 861 452 16% 2 176 835 1 714 741 27% Total NAV NAV generating revenues WAN generujący przychody 1 924 540 1 707 332 13% 1 956 088 1 544 751 27% n/a % Przychody / WAN gen. przychody % Revenues / NAV gen. revenues 2,3% p.a. 6,7% p.a. 2,1% p.a. 6,5% p.a. n/a n/a 6.7% p.a. 2.1% p.a. 6.5% p.a. 2.3% p.a. n/a % Koszty / WAN gen. przychody -1,8% p.a. -3,0% p.a. -1,3% p.a. -2,1% p.a. -1.8% p.a. -3.0% p.a. -1.3% p.a. 2.1% p.a. % Costs / NAV gen. revenues n/a n/a n/a n/a % Net profit / NAV gen. revenues 0.7% p.a. % Zysk netto / WAN gen. przychody 0,7% p.a. 4.0% p.a. 4,0% p.a. 1,0% p.a. 1.0% p.a. 4,5% p.a. n/a 4.5% p.a. n/a n/a n/a 11

13% YoY increase in assets generating the management fee p  The value of assets subject to a fixed fee in H1 increased by 13% YoY, gross assets – by 19% YoY due to organic growth and fund inflows , which in H1 16 amounted to more than PLN 138m gross and PLN 85m net (~ an increase of PLN 55m gross compared to H1 15)  The assets subject to a fixed fee increased by PLN 217m YoY . A very positive trend YoY was recorded for TV (+21%) and EV (+10%) funds. After the end of the first quarter, the CV investor redeemed PLN 30m worth of excess liquidity  At the end of H1 16 , NAV stood at PLN 2,159m , up 16% YoY  The funds managed by GK PEM have invested more than 275m YTD , of which more than 80% was invested by the MCI.EuroVentures fund which is in the process of building an asset structure based on the private equity model Net Asset Value (NAV) – basis for calculating a fixed fee Assets under management 16% (PLN million) (PLN million) 1 1 +13% increase in NAV (basis for fees) YTD 62 161 1 925 3% 1 956 1 891 above PLN 138m 80 1 779 62 81 7% 1 707 178 149 84 184 gross certificates sold 47 182 178 1 001 l 835 880 PLN 2,342m 844 43% 748 728 gross assets under 1 119 management 47% 863 833 782 754 765 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 Q2 15 Q4 15 Q1 16 Q2 16 Q3 15 12 Buyout (EV) Buyout (EV) Growth (TV) Growth (TV) Credit (CV) Early Stage (IV + HVP) Early Stage (IV + HVP) Credit (CV)