EBRD Agribusiness and Western Balkans Serbia November 2007

EBRD Agribusiness and Western Balkans Serbia, November 2007

What is the EBRD? l l Cumulative commitments € 34. 9 billion Unaudited June 2007 International financial institution established in 1991 with headquarters in London Promotes transition to market economies in 29 countries from central Europe to central Asia Owned by 61 countries and two inter-governmental institutions Capital base of € 20 billion

Active in all countries of operations Cumulative commitments € 34. 9 billion Southeast Europe 22% Russia 26% Central Europe & Baltics 32% Eastern Europe & Caucasus 13% Unaudited June 2007 Central Asia 7%

Serbia: Bank’s activities l l Country of operation since 2001 Local presence with fully fledged Resident Office and a resident Director l Total commitments of € 1, 164 M l Total of 72 approved projects

Serbia: Project portfolio - € 987. 8 M € million 433 339 555 115 Portfolio As of 31 August 2007 Undrawn commitments

Serbia: Commitments by sector – € 1, 164 M Financial Institutions 24% Transport 25% General Industry 8% Agribusiness 9% Power & Energy 15% As of 31 August 2007 MEI 11% Property & Tourism 5% Telecoms 2%

Serbia: List of Bank’s major projects l l Private Sector – Hemofarm, pharmaceuticals – Financial institutions (Komercijalna banka, Raiffeisenbank a. d. , Societe Generale Yugoslav Bank, Procredit Bank, Volksbank a. d. , Metals Banka, Cacanska Banka, Uni. Credit Bank, Opportunity Banka) – Ball Packaging – GTC Belgrade – Sevojno Rolling Mill – Soko Stark – Nectar – JKR Resource – Victoria Group (Sojaprotein) – SBB – Serbian Cable Operator – Frikom A. D. Public Sector - Serbia Railways: Rolingstock - Sava river crossing - Road recovery and Novi Sad to Belgrade Motorway project - EPS - Municipal Infrastructure Reconstruction Programme (Belgrade, Subotica, Nis, Novi Sad, Kragujevac) - Future Air Traffic Management Modernisation & Upgrading System

Update on Agribusiness The EBRD annual investments in the Agribusiness sector (Million EUR) l 333 projects signed with value of € 4. 7 bln l Growing annual commitments l 28 bankers from 19 counties l 8 bankers based / or to be based in ROs

EBRD & Agribusiness: Food Chain Upstream Agricultural inputs & production Downstream Primary & secondary processing Packaging & distribution Retail & Food Service

Agribusiness Portfolio by sub-sector

Agribusiness Clients Extensive experience in cooperating with the leading Agribusiness and FMCG corporates of the entire food chain. We are working with local and international clients with many follow on projects.

Agribusiness in WB – Cumulative Volume WB vs. other regions Region Volume (EUR mil) Percentage Western Balkans 485. 9 16% Central Europe (without Croatia) 453. 5 15% South Eastern Europe, Central Asia & Caucuses 1, 353. 8 45% 724. 6 24% 3, 017. 8 100% Russia Total

Agribusiness in WB – Past Success l The Agribusiness team has always worked with the leaders in each sub -sector, understanding the markets and the client needs l Successful transactions include : l. Agrokor, Croatia EUR 110 million equity l. Victoria Group, Serbia EUR 45 million debt l. Vitaminka, Macedonia EUR 4 million debt l. Soko Stark – Droga Kolinksa EUR 10 million debt l Relatively few failures – Fresh & Co, Serbia

EBRD 3 Key Fundamentals l Sound Banking l Transition Impact l Additionality

At the same time EBRD helps. . . To establish and comply with high enviornmental standards (EU/WB) l To promote and achieve energy efficiency savings (EE audit for free and financing EE sustainable projects) l Governments with improvement of regulatory framework to enhance market economy (e. g. Warehouse Receipt Law, free trade regime etc. ) l

How to Grow Successfully? l High Business Standards Establish high business standards at an early stage to make the business attractive for potential investors l Flexible financing platform Develop a flexible financing platform (debt & equity) to fulfil company’s corporate strategy l Right financing for your business Choose the appropriate financial instruments and sources to fund your current and future business needs

Financing Growth: Opportunistic Approach Lack of Strategic Objectives Short-term growth opportunities Inefficient operations Poor corporate governance Complex corporate structure Quick sale / Restructuring

Financing Growth: Strategic Approach Clear Strategic Objectives Long-term growth opportunities Operational efficiency Sound corporate governance Transparent corporate structure Flexible platform for further growth

Financial Instruments-EBRD unique institution as a provider of both debt and equity financing Equity Debt Bilateral DCM Strategic Financial Hybrid Products Portage Equity LBO/MBO Mezzanine IPO

Contact EBRD, Agribusiness Gilles Mettetal, Director, Agribusiness Team Tel. : +44 20 7338 7122 E-mail: mettetag@ebrd. com Miljan Zdrale, Banker, Agribusiness Team Tel. : +44 20 7338 7871 E-mail: zdralem@ebrd. com

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