INVL Technology

Investor Presentation • Jun 4, 2015

INVL Technology 2015 06 04

SHORT VIDEO PRESENTATION

Please see the video: https://youtu.be/P6YoCe1o8Z0

www.invltechnology.com | info@invltechnology.lt

approach

Business climate improvement & e-Governance, IT infrastructure, Cyber Security and IT intensive industries' solutions providers

Implementation of highimpact development projects in 50+ countries for multinational donor agencies (WB/UN/Norwegian development agencies/etc.)

Raising of 20+m EUR capital facility for additional acquisitions and portfolio companies development in emerging & frontier markets

CORPORATE STRUCTURE

KEY EXECUTIVES

VYTAUTAS PLUNKSNIS

M&A

DARIUS ŠULNIS

Fund Manager at Invalda INVL, AB Member of the Board of INVL Technology 12+ years' experience in capital markets and Invalda INVL Management 20+ exits experience

CEO, managing partner CEO, INVL Asset 20+ years of M&A, PE

KAZIMIERAS TONKŪNAS

CEO, co-founder & managing partner of INVL Technology 20+ years' executive experience in ICT sector M&A, spin-offs, frontier markets

VIDA JUOZAPAVIČIENĖ

Head of HR & General Affairs at INVL Asset Management, cofounder of INVL Technology 15+ years' experience in ICT sector M&A, HR, Marketing and Operations

NERIJUS DROBAVIČIUS

Member of the Board of INVL Technology 15+ years' experience in M&A, financial analysis and setting up management controls

7 years Involvement with INVL Technology

9 years Involvement with INVL Technology

9 years Involvement with INVL Technology

9 years Involvement with INVL Technology

1 years Involvement with INVL Technology

CLUSTER FOCUS AREAS

BUSINESS CLIMATE IMPROVEMENT & E-GOVERNANCE IT INFRA-STRUCTURE CYBER SECURITY

IT INTENSIVE INDUSTRIES' SOLUTIONS

BUSINESS CLIMATE IMPROVEMENT & E-GOVERNANCE

BUILDING SPECIALISED E-GOVERNANCE SOLUTIONS PROVIDER WITH A FOOTPRINT IN SELECTED MARKETS

INDUSTRIES & CLIENTS:

– Registries, Mortgage Offices, Public Procurement Agencies, e-Government, Licensing Offices, Central Banks, Tax inspectorates

SERVICES & SOLUTIONS:

• Legal, organisational reforms and their implementation;
• Design and implementation of critical and important national information systems;
• Tax collection with eFilling
• Transformation of business inspections;
• Public procurement and judiciary system modernisation;
• Reforms of state owned enterprises
• Creation of a secure digital environment.

OPERATIONAL MARKETS:

– Emerging and frontier economies: CEE, East Africa, South and Southeast Asia, Central America.

REFERENCES:

– Rwanda Office of the Registrar General, Mauritius e-Registry, Liberia Ministry of Commerce and Industry, Vietnam Business Development Agency, Lithuanian Central Mortgage Office.

Mauritius Registrar General Department. Before & After

www.invltechnology.com | info@invltechnology.lt

IT INFRASTRUCTURE

BUILDING LEADING IT INFRASTRUCTURE SERVICES PLAYER IN THE BALTICS WITH SIGNIFICANT SERVICES EXPORT TO THE FRONTIER MARKETS.

INDUSTRIES & CLIENTS

– General with focus on large corporate IT users and public sector

SERVICES & SOLUTIONS

• Design and installation of data centers;
• Design of super computers;
• Consolidation and virtualisation of servers and main IT infrastructure;
• Backup, emergency recovery and business continuity solutions.;
• Managed printing services CopyPrint;
• Information system lifecycle management, 24x7 maintenance and support.

OPERATIONAL MARKETS

– CEE, East Africa

REFERENCES

– Vilnius University, Bank of Lithuania, National Courts Administration, Litgrid, Reserve Bank of Zimbabwe, Burundi Central Bank, SEB Bank, DPD, Maxima, Ministry of Energy, Mauritius e-Registry

National Open Access Research Data Archive (MIDAS)

www.invltechnology.com | info@invltechnology.lt

CYBER SECURITY

BUILDING GLOBALLY OPERATING CYBERSECURITY SOLUTIONS AND SERVICES PROVIDER.

INDUSTRIES & CLIENTS

– Specialised public services providers (Law enforcement, National CERTs, Telecom, National communication regulators), and corporates with high data sensitivity

SERVICES & SOLUTIONS

• Cybersecurity incident resopnse Team (NRD CIRT);
• E-crime and abuse handling automation;
• Security assessment and review;
• Cyber defence technologies;
• Cyber security trainings.

OPERATIONAL MARKETS

– CEE, East Africa and South Asia.

REFERENCES

– Law enforcement offices, courts, National communication regulators.

Annual cyber security conference "Cyber Defence East Africa"

IT INTENSIVE INDUSTRIES' SOLUTIONS

BRINGING LOCAL SPECIALISED INDUSTRIES IT SOLUTIONS PROVIDERS TO GLOBAL SCENE.

INDUSTRIES

– Energy, Utilities, Banks, Retail, Manufacturing & logistics

SERVICES & SOLUTIONS

• E-banking;
• Smart retailing;
• Other sector specific solutions.

OPERATIONAL MARKETS

– CEE, Emerging and frontier economies: CEE, East Africa, South and Southeast Asia, Central America.

REFERENCES

– Lithuanian Centre of Registers, DnB bank in Lithuania and Estonia, Šiaulių bankas, Medicinos bankas, Reitan Convenience in Lithuania and Estonia, R-Kioski in Finland

ETRONIKA received "Best of Show" award at "FinovateEurope" in 2013 and 2014

PLATFORM FOR GLOBAL GROWTH…

FK program participants delivering trainings for Zanzibar National university IT students

EXAMPLE. ENTERING MAURITIUS MARKET

PORTFOLIO COMPANIES DELIVERING GROWTH

Share of revenue in frontier markets:

PORTFOLIO STRUCTURE (2014 12 31)

Portfolio structure by company value Portfolio capital structure

• Critical IT infrastructure services 85%
• Information systems design and development 5%
• Cyber security services 6%

Other liquid assets (cash & receivables) 4%

PORTFOLIO ASSETS STRUCTURE	mEUR	EV/EBITDA	P/E
Critical IT infrastructure services	13,20
Information systems design and development	0,70	6,7
Cyber security services	1,00		12,4
Other liquid assets (cash & receivables)	0,57
Total	15,47

CAPITAL STRUCTURE	mEUR
Equity	11,92
Loans from Invalda INVL	1,65
Loans from portfolio companies	1,84
Other payables	0,06
Total	15,47

Source: Management estimate; Financial statements; Deloitte valuation

EXPLOITING GROWTH OPPORTUNITIES

BALTIC ICT DEALS LANDSCAPE

PIPELINE PARAMETERS

CYBER SECURITY	• Specialized Cyber & Information security solution providers, with local market footprint Baltics , EE • 2-3 Add-ons with EV range 0,5-1 mEUR / • • 1 platform acquisition EV range 7-10 mEUR
IT INFRASTRUCTURE	• IT infrastructure services providers, data centers, • cloud solution providers • Baltics, Poland, Scandinavia • 4 Add-ons with EV range 0,5-1 mEUR 4 Platform acquisitions with EV range 5-7,5 mEUR • 2 Minority participations with EV range 5-10 mEUR •	30+ potential acquisition targets
BUSINESS CLIMATE IMPROVEMENT AND E-GOVERNANCE	E-governance and public sector oriented solution • providers, B2G oriented consulting services • Baltics, Scandinavia • 3 Add-ons with EV range 0,5-1 mEUR • 2 Minority participations with EV range 20+ mEUR	50 mEUR+ deals on target
IT INTENSIVE INDUSTRIES' SOLUTIONS	• B2B solution providers with focus on dedicated IT user industries: financials, utilities, energy; ERP solution providers; GIS solution providers; • Baltics, Eastern Europe, Scandinavia • 5-6 Platform acquisitions with EV range 3-5 mEUR, 2 with EV range 10 mEUR+ 5 Add-on acquisitions with EV range 0,5-1 mEUR •

POTENTIAL DEVELOPMENT MODEL

Please see the video: https://youtu.be/-tUXhafjb3E

www.invltechnology.com | info@invltechnology.lt

TARGET LEGAL STRUCTURE

SIZE:	Starting cap - EUR 11.9 million Target cap – EUR 35 million I Hard cap – EUR 50 million
TYPE:	Nasdaq Baltic listed closed end investment comapany
DOMICILE:	Lithuania (supervised by the Central Bank of Lithuania)
TERM:	10 + 2 years
INVESTMENT PERIOD:	5 years
FEES STRUCTURE:	2% management fee on market cap 20% carry over 8% hurdle rate
MANAGEMENT COMPANY:	INVL Asset Management
AUDIT:	Audited by Big 4 (currently – PwC)

TARGET LEGAL STRUCTURE

EXPECTED TIMELINE '2015

CONTACTS

KAZIMIERAS TONKŪNAS

Director INVL Technology, AB Mobile: (+370) 698 23368 Phone: (+370 5) 219 1919 Address: Gyneju str. 16, LT-01109 Vilnius E-mail.: k.tonkunas@invltechnology.lt

ANDREJ CYBA

Chairman of the Board, CEO Bank Finasta, AB Mobile: (+370) 320 68392 Phone: (+370 5) 203 22 33 Address: Maironio str. 11, LT-01124 Vilnius E-mail: Andrej.Cyba@Finasta.com

DISCLAIMER

• This presentation is prepared by AB INVL Technology (hereinafter the Company).
• The Company is not responsible for any third party decisions made by referring to only this information and it does not accept responsibility for the cost of direct and indirect losses caused by using only this information.
• This information is an informative marketing material, it is not and cannot be treated as a proposal (an offer), investment advice or an investment research.
• The corporate structure scheme is simplified. Unless it is indicated otherwise, the companies are owned 100 per cent.
• Stated dates are preliminary and are subject to change.
• Information provided in the marketing material represents the opinion of the Company at the time of its presentation/publication. This information is a one-off, but it may be renewed at the discretion of the Company.
• Value of financial instruments can both rise and fall, so there is a risk of losing some or all of the invested funds.