sortis invest presentation 20090715 en

8/14/2019 SORTIS Invest Presentation 20090715 En

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SORTIS INVEST

Corporate Presentation

Sofia

July 2009


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SORTIS Group

Corporate Presentation 3

SORTIS Invest is part of the SORTIS Group that also comprises:

Real Estate Investment Management

Company with expertise in:

Real estate investment advisory Real estate portfolio management Property fund management Mezzanine real estate financing

SORTIS Real Estate structures individual andcollective investment schemes that enable its

client-investors to benefit from the real estateopportunities the company has sourced andsecured.

Active in all major real estate sectors,including residential, office, retail, industrialand hotels.

Credit and Leasing Advisory Companywith expertise in:

Mortgage loans Investment loans Consumer loans Leasing Refinancing

SORTIS Credit offers advisory services for bank

loans and leasing to businesses andindividuals.

Partnership agreements with the leadingcommercial banks, leasing companies andnon-bank financial institutions in Bulgaria.


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Services

SORTIS Invest assists entrepreneurs in selecting and obtaining the most

appropriate type of financing for their investment plans

SORTIS is able to arrange the full spectrum of financing options andsecure100% of the investment needed through:

Private equity

Venture capital

Mezzanine loans Bank loans and other debt capital; leasing

EU grants funding

Additional services to corporate clients include consulting on:

Mergers & acquisitions

Corporate finance Company restructuring

SORTIS Invest also works on behalf of investors to identify high-yieldinvestment opportunities that match predefined investment criteria

4Corporate Presentation


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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

Venture Capital is given to growing companies that need externalfinancing in order to continue their expansion

Private Equity investors look for profitable and cash-flow positivecompanies

Sources of funding:

Strategic Investors

Venture Capital Funds Private Equity Funds

Buyout Funds

Business Angels, etc.



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Mezzanine Loans

Mezzanine financing is a way of attaining financing without ceding

ownership of the company. It is a blend of traditional debt financingand equity financing, reaping some benefits of both

Mezzanine financing is an unsecured debt, requiring no collateral tobe put up, unlike traditional bank loans

Like debt, mezzanine financing is very fluid and does not necessarilyinvolve 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 issubordinated to the senior debt



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Project Finance

Project Finance is financing for a particular project (such as a mine,

toll road, railway, pipeline, power station, etc.) which is repaid fromthe cash flow of that project

The financier principally looks at the assets and revenues of theproject 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 thesponsors of the project

The credit risk associated with the borroweris not as important as in ordinary loantransactions

Identification, analysis, allocation andmanagement of every risk associatedwith the project is of paramount importance



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Corporate Finance


SORTIS Invest helps its corporate finance clients to maximize the value

of their companies while keeping an eye on the firm's financial risks

Corporate Finance Services:

Mergers and Acquisitions

Business sales and disposals

Public company and take-over advice Management buy-outs

Management buy-ins

Strategic alliances

Valuations, fairness opinions and appraisals

Debt-raising and restructuring advice

SORTIS assists companies in their strategic choices aimed at growth,

market penetration and/or exit


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SORTIS Invest assists companies in obtaining

grant financing from EUs Operational

Programmes that are active in Bulgaria

The SORTIS EU Grants services include:

Eligibility evaluation

Competent choice of the most appropriate scheme for the Clients

project

Preparation of a professional business plan and financial model that

demonstrate explicitly the projects business sense and profitability

Putting together the physical application and organizing all necessarydocumentation

Assistance in attracting the needed co-financingsecuring 100% of the

investment required to implement the project


EU Grants Funding


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Approach

Before taking a mandate and presenting an investment opportunity to

potential investors, SORTIS Invest makes an internal assessment of theproject in order to determine its:

Feasibility Bankability and finance-ability Project Sponsors creditworthiness

SORTIS Invest suggests a financing structure, which best serves theClients interests and at the same time meets the investment policiesand requirements of potential funders

Equity Mezzanine loans Project financing

Credibility and trust are a main factor in the decision making processof all financial investors

Investors heavily rely on the discretion of SORTIS Invest in selecting andproposing them high-quality projects



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Pre- & Post- Investment Support

SORTIS helps its advisory clients determine and

refine a winning business strategy and thenimplement it

Business strategy is determined based onassessment of the Clients competitive positionand taking into consideration global and localmarket conditions and long-term trends

Careful analysis of:

Competitive advantages of the Client

Problem areas

Strategic positioning

Market trends

Project characteristics



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Investment Funds


SORTIS Invest has built up an extensive network of investment fundscomprised of:

Private equity funds

Buy-out funds

Mezzanine funds

Venture capital funds

Seed capital funds

Business angels

High net worth individuals

Network of ca. 120 investment funds throughout countries in Europe,

North America, Middle East and Asia SORTISs relationships with a wide range of investment funds

facilitates investment process by finding the optimal solution for the

Client


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Funds Investment Criteria


Partnering funds bring to companies and businesses exposure to a

broad variety of investment criteria:

Equity investment size: from 1mln to 150+mln

Investment horizon: usually 3 to 7 years, maximum 15 years

Variety of sectors on focus

Ownership stake: controlling, majority or significant minority

Transaction types: leveraged buy-outs, management buy-outs and buy-ins, growth capital, seed and early-stage


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Strategic Investors


SORTIS Invest works with a network of strategic investors that could

convey to companies and businesses substantial benefit by: Adding value to investments

Strategic partners that operate in major industries such as healthcare,telecommunications, technology, retail, food processing, beverages, etc.

Providing industry know-how and business expertise

Strategic investor may possess a brand name recognized in manycountries

Strategic investor typically brings to the firm valuable experience inmarketing, operations and sales

Providing valuable training to company employees and management

Strategic investor also provides industry and personal connections that

are beneficial for bringing in additional capital and/or assisting with thesale of the company's products and services


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Management

Martin Paev has 10+ years of investment banking, M&A and asset managementexperience gained at the ING Barings investment bank in Frankfurt/Main(Germany), ETEBA (the investment banking arm of National Bank of Greece),Balkan Advisory Company (an independent investment banking boutique inSouth-Eastern Europe).

Mr. Paev structured the first Real Estate Investment Trust in Bulgaria (TBI-BAC REIT)and acted as the REITs Executive Director from its establishment until he joinedADDRESS Group as Executive Director of ADDRESS Investment & Development in2005. In November 2006 he established his investment advisory firm, SORTIS Invest.In March 2007 SORTIS Real Estate was set up as a real estate asset managementand investment advisory company.

Educated in Bulgaria, the Netherlands and Germany, Mr. Paev holds a Mastersdegree in Banking and Finance and a Bachelors degree in BusinessAdministration. He is CFA Charterholder and served two mandates as Boardmember of the Bulgarian CFA Society.


Mr. Martin Paev, CFA

Born 1975, BulgarianOwner and General Manager


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Key Team Members


Dimcho G. Dimitrov, Investment Banking Associate, brings experience to theSORTIS team in strategic market research, analysis and forecasting, newproduct market sizing through financial modeling and company due diligenceon M&A transactions. Prior to joining SORTIS, Dimcho was Strategy Analyst withW. R. Grace & Co., a $3B public specialty chemicals company, where heprovided analytical support for the organic and external growth initiatives ofthe organization. Mr. Dimitrov holds a Master of Business Administration (MBA)

degree from Northeastern University, Boston, USA.

Krasimir Goranov, Investment Banking Associate, is an expert in finance andaccounting, including investment analysis, project and company valuations,hedging and risk control and portfolio management. Prior to joining SORTISInvest, Krasimir worked in the US as a Financial Analyst for Q Investments, L.P., a

privately-held hedge fund with $2.7B of assets under management. Mr.Goranov held similar positions also at Bear Stearns & Co. and William C. ConnorEducational Investment Fund. Mr. Goranov completed his Bachelors degree inAccounting and Finance at Texas Christian University, Fort Worth, USA.


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Track Record


WiMax Telecom Operator

Investor: Dekol

Amount: n.a.

Financial Advisor toAtlantis.bg (Project Sponsor)

August 2007

LAN Internet Provider

Investor: Advance EquityHolding

Amount: 4,000,000

Financial Advisor toSpeedy Net

December 2007

Speedy Net

Risk Management Software

Investor: New EuropeVenture Equity (NEVEQ)

Amount: $ 5,000,000

Financial Advisor toFinAnalytica

March 2008

Selected private equity and venture capital deals:

As well as projects in food processing, retail trade,

information and communication technologies, healthcare and other sectors.


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Contacts

Mr. Martin Paev, CFAGeneral Manager

E-mail: [email protected]

Cell: +359 88 50 50 200

www.sortis.bg

Tel: +359 2 943 90 70

Fax: +359 2 943 90 71

49 Madrid Blvd., Floor 1

Sofia 1505, Bulgaria


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