Working with the European Bank for Reconstruction and Development

Manufacturing and ServicesManufacturing and Services

Lisbon November 2012

Table of Contents

A. Introduction to Manufacturing and Services

B. Case Studies

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A.Manufacturing and Services(‘M&S’)

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(‘M&S’)

Manufacturing and Services: Industry Sectors

32%7%

5%5%

M&S New Business Volume Breakdown by Industry Sector in 2011

Financial Institutions

34%

Infrastructure20%

Manufacturing &

EBRD Portfolio Breakdown by Sector in 2011

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26%

14%

10%

Chemicals Forestry & Paper Metals Construction Materials Capital & Intermediate Goods Other Manufacturing Health & Pharmaceuticals Logistics, Retail & Other Textile Automotive Consumer Goods

Energy21%

Corporate (1)14%

Manufacturing & Services

11%

Footnotes: (1) Corporate including the agribusiness, property and tourism and telecommunications sector, and excluding manufacturing and services

Manufacturing and Services: Team Overview

• 60 bankers of 25 different nationalities

• 40 bankers based in the Bank’s countries of operation to serve clients locally

• 10 centres of excellence to provide industry expertise with lead bankers and sector experts

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and sector experts

• The team has completed more than 460 projects with total commitments of €7.8 billion

• In 2011, the team completed 49 projects with commitments of €919 million

• The team has significant experience with complex projects in various industries through tailor-made financing solutions

Manufacturing and Services: Objectives

� Through its investments in commercially sound projects , the EBRD aims to promote open market economies in its countries of operation

� EBRD’s key objectives in the Manufacturing and Services sector are as follows:

� Support private and entrepreneurial initiatives by engaging in long term partnerships to help developing businesses

� Be additional to private sector finance by participating in projects that commercial banks or private investors are reluctant to undertake

policy dialogue

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� Engage in policy dialogue with authorities, where necessary, to improve regulatory and legal frameworks for business

� Be a leader in supporting strong corporate governance, introducing best practices and raising industry standards

� Mobilise significant foreign direct investments , supporting companies in unfamiliar and sometimes challenging environments

� Provide a wide variety of financing alternatives, innovative products, and international sources of funding to help support companies to the next stage of development

� Encourage environmentally sound and sustainable development by identifying cost effective energy efficiency investments within every project

Our financial contribution

� Senior, subordinated, convertible

Loans

� Common stock or preferred

Equity

The team supports capex financing and working capital for greenfield projects or expansions, acquisitions , privatizations and restructuring

through

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� With (limited) recourse or without

� Long tenors

� Floating/ Fixed rates

� Choice of currencies (€, US$, RUB etc.)

� Minority position only (up to 35%)

� Mezzanine

� Other

– guarantees

….for your company or your customers.

What we are looking for

• Financially sound projects

• Financing gaps of EUR 5 million or more representing up to 35% ofProject cost or Borrower long-term capitalization

• Sponsors with solid expertise in their sector

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• Sponsors with solid expertise in their sector

• Sponsor financial contribution through equity and pre-completionsupport

• Transparent ownership structures

• Security over physical assets for loans

Requirements for initial evaluation of your project

• Background information on the Borrower/Investee including :- History/Main Milestones to date- Current activities in terms of sector, size, location

• Audited historic financials of the Borrower/Investee and, if relevant, of its parent (ideally under IFRS)

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• Business Plan for the project includes:- commercial objectives- project cost and intended funding sources- financial projections- information on main customers- information on main suppliers

• Information on ownership chain and ultimate beneficial owners of the Borrower/Investee

Operational Strengths of the EBRD

� Engaged minority partner for business

� A business partner who shares risks, including political

� Catalyst to access additional equity, debt and trade finance

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� Extensive knowledge of local economy, business environment and practices; local presence

� High standards for governance and compliance

Institutional Strengths of the EBRD

� Strong, internationally recognised financial partner with long-term perspective

� Close working relationships with governments and shareholders

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� Political leverage due to EBRD’s unique mandate and shareholder structure

� AAA credit rating

� Work closely with market sources of capital to fill “market gaps”

Manufacturing and Services: Selected Clients

Clients of the Manufacturing and Services team range from major international industry players to local medium and small sized companies

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B. Case Studies

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B. Case Studies

Logoplaste

� Client: Logoplaste Ukraine, subsidiary of Portuguese Logoplaste Group, one of the world’s largest producers of rigid plastics packaging

� EBRD Finance: Loan of €4.1 million secured by Logoplaste corporate guarantee

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� Use of proceeds: support Logoplaste Ukraine in acquiring, modernising, and operating the packaging facilities of SC Johnson Ukraine

� EBRD added value: this industrial investment by an international medium-sized Portuguese company in Ukraine sets an example for other medium-sized European companies to consider that market

Signed in 2009

Guardian Industries

• Client : Ryazan and Rostov subsidiaries of Guardian Industries Corp., one of the world leaders in float and fabricated glass manufacturing

• EBRD Finance : – 2007: a long-term senior syndicated loan for RUB 4.3 billion (approx. EUR 122 million)– 2011: long-term senior loan of up to RUB 2.1 billion (approx. EUR 54 million)

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(approx. EUR 54 million)

• Use of Proceeds : – 2007: construction of a float glass plant in Ryazan to produce high quality glass for the construction industry– 2011: development of a new float glass manufacturing plant and a glass coating line in Krasny Sulin (Rostov Region)

• EBRD added value : i) supporting Guardian Industries expansion strategy; ii) providing potential foreign investors with a model for developing similar projects; iii) promoting world class technological and corporate governance standards

Signed in 2007 and 2011

Takata

• Client: Takata Corporation (Japan), one ofthe World market leaders (30% of themarket) in manufacturing and sales ofautomotive safety systems and products.

• EBRD Finance: EUR 4m in equityinvestment into the client’s subsidiary inRussia Takata Rus.

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• Use of Proceeds : construction of a plant toproduce steering wheels, airbags and seatbelts, located in Ulyanovsk, Volga Region,and employing about 300 people.

• EBRD added value: support a committedstrategic investor entering the Russianmarket, facilitate transfer of skills andtechnology, facilitate access of RussianOEMs to the local supplies of high quality

Signed in 2011

Metro

� Client: WRE LLP and Metro Cash & Carry LLP, Kazakh subsidiaries of Metro Group – the major German retailer

� EBRD Finance: €80 million (US$ 105 million) loan. 7-year loan will also be available in local currency

� Use of Proceeds: to expand retail facilities

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� Use of Proceeds: to expand retail facilities and raise the quality of the country’s retail sector, which will result in better shopping experience for the people of Kazakhstan, especially, in the country’s more remote areas.

� EBRD added value: build up cash and carry stores across the country. Importantly, locally-produced products will comprise nearly a half of the whole product range on sale in the new Metro stores, which will promote further development of local producers.

Signed in 2011

Borets Group

� Client : PK Borets, part of Borets International – the largest Russian vertically-integrated manufacturer of ESP systems

� EBRD Finance : USD 140 million senior loan with 1/3 of which to be syndicated to commercial banks. Total project Cost: USD 230 million.

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Signed in 2009

project Cost: USD 230 million.

� Use of Proceeds : refinancing PK Borets’ short-term indebtedness, financing the production modernisation programme and working capital needs

� EBRD added value : strengthen Borets’ capital base; support production modernisation and innovations; commercialization of energy-efficient and environmentally-friendly technologies; development of technologies for oilfield services sector in Russia

Antea Cement

� Client: Antea Cement Sh.A., a company in Albania, majority owned by Titan Cement Company S.A., an international cement producer with plants operating in three continents

� EBRD Finance: EUR 12.6 million equity and EUR 16.8 million subordinated debt

� Use of proceeds: Construction and operation of a green

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� Use of proceeds: Construction and operation of a green field cement plant designed to produce 1.5 million tons of cement annually at a plant located about 30 km north of Tirana

� EBRD added Value: The project is one of the largest industrial Greenfield investments in Albania. The entry of a second major player in the local cement market restores competitive pressure. A part of the company’s production is exported into the region, thus strengthening the trade links between Albania and its neighbours.

Signed in 2008

Stora Enso

� Client: Stora Enso Packaging BB

� EBRD Finance: €5.85 million loan. Tenor: 9 years. Co-financing: total €17.25 million syndicated loan with Handelsbanken, Nordea and SEB bank. Security: corporate guarantee from the Sponsor

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guarantee from the Sponsor

� Use of Proceeds: construction of a greenfield offset printed micro-flute packaging plant in Kaluga region

� EBRD added Value: MPF as an important umbrella for new investments in the forest product sector

Signed in 2007

Manufacturing and Services: Contacts

Bénédicte Kariger

Principal Banker

Manufacturing and Services

Tel: +44 207 338 6012

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Email: karigerb@ebrd.com

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