Healthcare, Logistics, TMT in Europe and in CEE in 2016 H1 · Heal Partners Newsletter Healthcare Healthcare, Logistics, TMT in Europe and in CEE in 2016 H1 in association with Telecom,

2016 H1

Heal Partners Newsletter

Healthcare

Healthcare, Logistics, TMT in Europe and in CEE in 2016 H1

in association with

Logistics & DistributionTelecom, Media, Technology

Healthcare

2

Sector M&A highlights – 2016 H1Europe – Transaction activity

Analysis performed by:

2016 H1 Volume growth

HEALTHCARE, 2016 H1: Pharma took the lead this timePrevious years’ accelerated M&A activity somewhat cooled down in Europe in 2016 H1; deal volume dropped by one-fourthcompared to 2015 H1. Some large deals, however, appeared in the European Healthcare and Pharmaceutical space, thePharmaceuticals sub-segment being the most active this time. UK giant Astra Zeneca invested in oncology by acquiringmajority stake (55%) in privately-owned biopharmaceuticals company, Acerta Pharma. After Mylan, the US-based generic drugmaker failed to close the acquisition of its smaller rival Perrigo (see in our last report), it is going for Swedish OTC and genericdrug maker, Meda AB for the third attempt (the deal is expected to close in Q3). Healthcare equipment segment is the otherhot topic in the continent. Early this year, Bayer AG divested its diabetes care business to Panasonic Healthcare, the saleincludes the leading Contour™ portfolio of blood glucose monitoring meters and strips, as well as other products.

In CEE, 2016 H1 was strong again with a 32% increase in deal volumes. Turkey’s Acibadem, in line with its strategy of focusingon key CEE and Balkan markets, becomes leading healthcare provider in Bulgaria (owning 4 hospitals, 4 medical centres andtotal of 750 beds) after acquiring Bulgaria’s largest private hospital owner, Tokuda Group, as well as signing a mergeragreement with City Clinic Group (total investment of app. EUR 125mn).

When it comes to this sector’s overall deal activity, private equity firms are still very active in the region. Mid Europa Partnersbought out the founding family and increased its stake to 100% in Walmark, the region’s leading consumer healthcare player;Riverside exited Hungary-based diagnostics device producer Diatron and some of the private equity-backed providers inHungary, Romania and Slovenia continued local consolidation. Financial investors activity is supported by healthy medianvaluation multiples of 0.9 – 1.4x Sales and 6 – 11x EBITDA, with some sub-sectors and growth companies attracting valuationlevels beyond 2x Sales and 15x EBITDA.

-25%

+27

CEE – Transaction activity

Bertalan JászkutiHealthcare Lead

[email protected]+36 20 444 0998

Note: Due to lack of available data June 2016 Biotechnology EV/EBITDA multiple in CEE is missing

Europe – Valuation

CEE – Valuation

+32%

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA


Jun 2015 Jan 2016 Jun 2016

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA

Jun 2015 Jan 2016 Jun 2016

2012

2012

2013

2013

2014

2014

2015 H1

2015 H1

2015

2015

2016 H1

2016 H1

0

20

40

60

80

100

120

140

2230

102 104

123

26

11,7x

2,9x

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14,1x

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14,0x

16,0x

18,0x

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1 200

Europe: 26

Healthcare Equipment & Supplies 4

Pharmaceuticals 18Healthcare Providers & services 4

billions

Biotechnology Healthcare equipment

Healthcareproviders

PharmaceuticalsHealthcare Total

3

European M&A trends & market analysisThe following data are compiled specifically for the Healthcare sector, with Deal Volume over time in the first chartbased on annual transactional data; Deal Value for those transactions where value was disclosed in the secondchart; sub-sector comparisons in the third chart based on listed companies data as at 20 June, 2016.

Comment Context

European Healthcare Listed Companies TEV/EBITDA Multiple

is highest in Biotechnology at 16.9.

European Healthcare Listed Companies TEV/Sales Multiple

is highest in Biotechnology segment at 11.7 and the lowest in Healthcare providers & services of 1.3

Data supplied by:

Availability of deal valuedata was only 34% of thetotal deal count in 2016H1,which limit our analysis.

In 2016 H1 deal valuedisclosed totalled EUR26bn, significantly lowerthan in 2015 H1 and in2014 H1.

Global listed companies TEV/Sales multiples:

Biotechnology 14.1Healthcare Equipment 3.0Healthcare Providers 2.1Pharmaceuticals 3.5Total Healthcare 3.9

Global listed companies TEV/EBITDA multiples:

Biotechnology 21.7Healthcare Equipment 15.4Healthcare Providers 12.6Pharmaceuticals 17.9Total Healthcare: 15.8

3,435 deals wereannounced in totalbetween 2012 – 2016 H1in Europe.

Healthcare providers &services segments hasserved as primary dealdriver (41% of total) in2012-2016 H1.

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All European Transaction Volumes (#)by segment in 2016 H1:

Europe: 385


Pharmaceuticals 117

Healthcare Providers & services 159

Biotechnology 25


European Healthcare Deal Value (EURbn)by segment in 2016 H1:

Healthcare

Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 34 (2013: 4, 2014: 1, 2015: 45) European deals in the value of EUR 7.1bn (2015: 7.1bn)

649 626

804

501

971

385


Biotechnology 14.1Healthcare Equipment 3.0Healthcare Providers 2.1Pharmaceuticals 3.5Total Healthcare 3.9


Biotechnology 21.7Healthcare Equipment 15.4Healthcare Providers 12.6Pharmaceuticals 17.9Total Healthcare: 15.8

2012

2012

2013

2013

2014

2014

2015 H1

2015 H1

2015

2015

2016 H1

2016 H1

8,1x

2,9x

0,9x 1,4x 1,5x

19,1x

10,6x

6,1x

10,1x

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10

20

30

40

50

60

70

0

10

20

30

40

50

60

70

CEE Transaction Volumes (#)by segment in 2016 H1:

Central-Eastern Europe: 29


Pharmaceuticals 8

Healthcare Providers & services 16

4

CEE M&A trends & market analysis

Comment Context

CEE Healthcare Listed Companies TEV/EBITDA Multiple

is highest in Healthcare Equipment& Supplies at 19.1, the lowest in Pharmaceuticals of 6.1.

CEE Healthcare Listed Companies TEV/Sales Multiple

is highest in Biotechnology at 8.1, and the lowest in Healthcare Providers of 0.9.

CEE Healthcare– Deal Volume by country (#), 2016 H1:

CEE: 29

Other CEE: 5

Baltics: 2

Czech Republic 6

Romania 5

Poland: 11

Data supplied by:

Poland is the hot spot with23 target companiesacquired per annum onaverage, 11 in 2016 H1.Czech Republic was No. 2with 5+ deals per year(2012-2015), CzechRepublic had 6 in 2016 H1as well.

210 deals were announcedin total between 2012 –2016 H1.

Healthcare Providers &Services segment hasserved as primary dealdrivers (46%) in CEE &Baltics.

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The following data are compiled specifically for the Healthcare sector, with Deal Volume over time in the first chartbased on annual transactional data; county comparisons in the second chart, sub-sector comparisons in the thirdchart based on listed companies data as at 20 June, 2016.


N/A

Healthcare

Biotechnology Healthcare equipment

Healthcareproviders

PharmaceuticalsHealthcare Total

Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 5 (2013: 3, 2015: 2) CEE deals in the value of EUR 11.6mn (2013: 9.5mn , 2015: 2.1mn)

3835

44

22

64

29

3835

44

22

64

29


Péter KarliTMT Lead


TMT

TMT, 2015: Software is taking over share of TMT deal activity as telcoand media mega deals were missingWhile there was no significant change in TMT deal volumes in 2016 H1 compared to 2015 H1, total deal value has decreasedin Europe. All TMT segments except Software reported decreasing deal value. The most significant decrease was observed inthe Media and Publishing segment where 7 deals passed the 1bn limit in 2015 H1, while in 2016 H1 only 1 reached thatthreshold. Telecom sector also suffered with number of mega deals decreasing from 10 to 7. The recent wave of consolidationdecreased the number of mobile players in many countries and banks seem to show increasing cautiousness to finance megadeals in the telecom sector. In the meantime, the software segment seems to be filling some of the above deal volume gap; 4software deals made it to the 2016 H1 top 10 deal list, with a total value of 15bn EUR. In light of some additional factors ofmacro uncertainties such as Brexit, we do not expect mega deals to come back to the market as a trend. As resistant sectors tomacro uncertainties, the Software and Technology segments shall stay on the spotlight as major drivers of deal activity inEurope.

In CEE, a particular interesting trend is Poland’s decreasing share in the M&A market due partially to the increased politicaland macroeconomic uncertainty. Despite of the lower activity in Poland, CEE as a region is still an attractive location forinternational investors, many countries reached significant volume growth (e.g. Croatia from 1 to 7 deals or Slovakia from 1 to5 deals). Software and IT segment showed exceptional growth from 56 deals in 2015 H1 to 75 in 2016 H1. CEE’s competitiveadvantage in terms of good quality workforce at a reasonable cost level attracts more international investors, hence segmentslike IT security, fintech or online-media seems to benefit from this trend. CEE seems to follow the European trend, recordingmany smaller consolidations but lacking the large cross border deals. Central European investors can expect median valuationlevels of 0.3-1.2x Sales and 6.0-7.4x EBITDA.



+27



CEE – Valuation

+3%

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA


Jun 2015 Jan 2016 Jun 2016

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA

Jun 2015 Jan 2016 Jun 2016


-1%

2012

2012

2013

2013

2014

2014

2015

2015

2015 H1

2015 H1

2016 H1

2016 H1

0

500

1 000

1 500

2 000

2 500

3 000

3 500

billions

Technology Media Software Telecoms Total TMT

6

European M&A trends & market analysisThe following data are compiled specifically for the TMT sector, with Deal Volume over time in the first chart basedon annual transactional data; Deal Value in the second chart for those transactions where value was disclosed; sub-sector comparisons in the third chart based on listed companies data as at 20 June, 2016.

Comment Context

European TMT Listed Companies TEV/EBITDA Multiple

is highest in Software at 10.6 40% higher than Telecom with 7.5 multiple.

European TMT Listed Companies TEV/Sales Multiple

is highest in Telecom at 1.7and the lowest in Media sub-segment of 1.0.

Data supplied by:

Availability of deal value data was only 27.6% of the total deal count in 2016 H1 (21.6% on 2012-2016 H1 average), which limit our analysis.

In 2016 H1 deal value disclosed totalled EUR 79.3bn, lower than in 2015 H1.

Global listed companies TEV/Sales multiples:Technology: 1.0Media: 1.5Software: 1.9Telecoms: 1.9Total TMT: 1.4

Global listed companies TEV/EBITDA multiples:Technology: 9.4Media: 9.1Software: 12.4Telecoms: 7.7Total TMT: 10.0

11,296 deals wereannounced in totalbetween 2012 – 2016 H1 inEurope, of which 80%(8,986) was closed.

Software segments hasserved as primary dealdriver (53% of total) in2012-2016 H1.

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European TMT – Deal Value (EURbn) by segment in 2016 H1 were:

All European Transaction Volumes (#)by segment in 2016 H1 were:

Europe: 1 353

Telecoms 115

Technology 121

Software 799

Media 318

Europe: 79

Telecoms: 46

Technology 3

Software 24

Media 6

0

20

40

60

80

100

120

140

160

180

200

1,2x 1,0x1,4x 1,7x 1,3x

10,2x

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6,0x

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12,0x

TMT

Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 91 (2013:2, 2014:4, 2015:81) European deals in the value of EUR 52bn (2014:15.1bn , 2015: 36.9bn)

23072117

26382881

1370 1353

6376

161

187

100

79

CEE Transaction Volumes (#)by segment in 2016 H1 were:

CEE: 136

Telecoms 21

Technology 4

Software 75

Media 36

2012

2012

2013

2013

2014

2014

2015

2015

2015 H1

2015 H1

2016 H1

2016 H1

7


Comment Context

CEE TMT Listed Companies TEV/EBITDA Multiple

is highest in Technology segment at 7.4 and the lowest in Telecom sub-sector of 6.0.

CEE TMT Listed Companies TEV/Sales Multiple

is highest in Telecom at 1.2, 3.6 times as high as in the lowest in Technology segment of 0.3.

Data supplied by:

Poland is the hot spot with85 target companiesacquired per annum onaverage, 55 in 2016 H1.Czech Republic was No. 2with on average 27 dealsper annum (2012-2015),while in 2016 H1 with 24transactions it clearlystrengthened its position inthe CEE region.

879 deals were announcedin total between 2012 –2016 H1, of which 73%(641) was completed.

Software segment hasserved as primary dealdrivers (47%) in CEE &Baltics in the period of2012 – 2016 H1.

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The following data are compiled specifically for the TMT sector, with Deal Volume over time in the first chart basedon annual transactional data; county comparisons in the second chart, sub-sector comparisons in the third chartbased on listed companies data as at 20 June, 2016.


Technology Media Software Telecoms Total TMT

Global listed companies TEV/Sales multiples:Technology: 1.0Media: 1.5Software: 1.9Telecoms: 1.9Total TMT: 1.4

Global listed companies TEV/EBITDA multiples:Technology: 9.4Media: 9.1Software: 12.4Telecoms: 7.7Total TMT: 10.0

0

50

100

150

200

250

300

CEE Deal volume by country in 2016 H1 (#)

CEE: 136

Other CEE 30

Hungary 5

Baltics 22

Czech Republic 24

Poland 55

0

50

100

150

200

250

300

0,3x0,9x 0,9x 1,2x 1,0x

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2,0x

3,0x

4,0x

5,0x

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TMT

Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 11 (2013:1, 2014:2, 2015:8) CEE deals in the value of EUR 313 mn.

137157

195

254

132 136

137157

195

254

132 136

Logistics


Péter KarliTransport Lead


LOGISTICS, 2016 H1: Marine services segment appeared on the M&AmapWhile transaction volume did not change significantly in 2016 H1 (compared to 2015 H1), neither in Europe, nor in the CEEregion, a new segment showed unusual activity. Marine services segment volume increased far at the quickest pace (+44%compared to 2015 H1). Cross-border transactions warmed up the European market, Turkey’s Yildrim Holding acquiredPortuguese Mota-Engil Group’s port management and logistics companies (the transaction is expected to be completed bythe end of the year); and Hong Kong-based COSCO Group, the wholly-owned subsidiary of Chinese giant, China OceanShipping Group was very acquisitive in Europe in 2016 H1. It took part as buyer in the privatisation of the Greek Piraeus Port inApril with the intent to turn Piraeus a logistics hub for Chinese exports to Europe. In May COSCO acquired 35% stake inEuromax Terminal in Rotterdam (NED), which is an automatic container terminal with 3.2 million TEU* handling capacity.

In CEE, the Marine services segment was also a hot spot in 2016 H1. In the region, however, domestic deals were more typical,Poland’s OT Logistics is to acquire Gdynia-based logistics and forwarding company, Sealand Logistics (subject to competitionoffice approval) and Luka Rijeka, one of the largest ports in Croatia, is also for sale.In the logistics sector, Poland’s leading position in transaction activity is undisputable in CEE. Trans Polonia Group, the Polishtransportation and logistics company acquired PKN’s transportation specialist company, Orlen Transport, which furtherstrengthens last years’ trend of local regional champions’ rise. This trend is also supported by healthy median valuation levelsof 0.8-1.6x Sales and 7.5-8.9x EBITDA.



+3%

+27



CEE – Valuation

-6%

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA


Jun 2015 Jan 2016 Jun 2016

Jun 2015 Jan 2016 Jun 2016

EV/Sales EV/EBITDA

Jun 2015 Jan 2016 Jun 2016

Note: Due to lack of available data June 2015 Air freight and Courier services EV/EBITDA multiple in CEE is missing

*Standard unit for describing a ship's cargo carrying capacity, or a shipping terminal's cargo handling capacity.

2012

2012

2013

2013

2014

2014

2015

2015

2015 H1

2015 H1

2016 H1

2016 H1

0

5

10

15

20

25

0

100

200

300

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500

600

700

billions

Air Freight & courier

Marine Services Ground transp. Logistics Total

9

European M&A trends & market analysisThe following data are compiled specifically for the Logistics sector, with Deal Volume over time in the first chartbased on annual transactional data; Deal Value for those transactions where value was disclosed in the secondchart; sub-sector comparisons in the third chart based on listed companies data as at 20 June, 2016.

Comment Context

European Logistics & Distribution Listed Companies TEV/EBITDA Multiple

is highest in Ground Transportation at 8.7.

European Logistics & Distribution Listed Companies TEV/Sales Multiple

is highest in Marine Services segment at 2.0 and the lowest in Air freight & courier of 0.6

Data supplied by:

Availability of deal valuedata was only 22% of thetotal deal count in 2016 H1(24% on 2012-2016 H1average), which limit ouranalysis.

In 2016 H1 deal valuedisclosed totalled EUR10.5bn, something lowerthan in 2015 H1 butsignificantly higher than in2014 H1.


Air Freight: 0.7Marine services 2.2Ground transp. 0.9Total Logistics: 1.4



2,367 deals wereannounced in totalbetween 2012 – 2016 H1 inEurope, of which 74%(1,762) was closed.

Ground transportationsegments has served asprimary deal driver (60% oftotal) in 2012-2016 H1.

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All European Transaction Volumes (#)by segment in 2016 H1 were:

Europe: 222

Ground transp. 123

Marine services: 56

Air freight & courier 43


Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 17 (2012:1, 2015:16) European deals in the value of EUR 5.1bn.

0,6x

2,0x

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8,7x

7,7x

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Europe: 10.5

Ground transp. 1.5

Marine services: 1.3

Air freight & Courier 7.7

European Logistics & Distribution – Deal Value (EURbn)by segment in 2016 H1 were:

Logistics

589

519 503 534

216 222

20.6

9.3

7.1

21.9

15.1

10.5

2012

2012

2013

2013

2014

2014

2015

2015

2015 H1

2015 H1

2016 H1

2016 H1

0

10

20

30

40

50

60

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30

40

50

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CEE Transaction Volumes (#)by segment in 2016 H1 were:

Europe: 15

Ground transp. 9

Marine services: 5

Air freight & courier 1

10


Comment Context

CEE Logistics & Distribution Listed Companies TEV/EBITDA Multiple

is highest in Air freight and Courier at 8.9, the lowest in Marine Services of 7.5.

CEE Logistics & Distribution Listed Companies TEV/Sales Multiple

is highest in Marine Services at 1.6, and the lowest in Ground transportation of 0.8.

CEE Logistics & Distribution – Deal Volume by country (#), 2016 H1

CEE: 15

Other CEE: 5

Baltics: 2

Poland: 8

Data supplied by:

Poland is the hot spot with15 target companiesacquired per annum onaverage between 2012-15,8 in 2016 H1. CzechRepublic and Romania wasNo. 2 with 4+ deals peryear (2012-2015), CzechRepublic had 3 in 2016 H1as well..

186 deals were announcedin total between 2012 –2016 H1, of which 66%(122) was completed.

Ground transportationsegment has served asprimary deal drivers (58%)in CEE & Baltics.

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The following data are compiled specifically for the Logistics sector, with Deal Volume over time in the first chartbased on annual transactional data; county comparisons in the second chart, sub-sector comparisons in the thirdchart based on listed companies data as at 20 June, 2016.


Air Freight & courier

Marine Services Ground transp. Logistics Total

0,9x1,6x

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8,9x

7,5x

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10,0xGlobal listed companies TEV/Sales multiples:




Note: Due to the methodology as this Report is prepared, some overlap may occure between certain years. This means that one transaction can potentially appear in two years' statistics, first when it is announced and then when it is completed (if these two happen in different years). For this reason, in the 2016 H1 Report the overlap in the aggregate concerns 2 (2015:2) CEE deals in the value of EUR 20mn.

Logistics

53

42

32

44

16 15

53

42

32

44

16 15

TOP 10 European transactions in 2016 H1

TargetValue

(EURm)Date

Percent

soughtTarget country Buyer Segment

Meda AB 8 080.0 2016.02.10 N/A Sweden Mylan NV Pharmaceuticals

Acerta Pharma BV 4 392.7 2015.12.14 55 Netherlands AstraZeneca PLC Pharmaceuticals

Priory Group Ltd 2 404.9 2016.01.04 100 United Kingdom Acadia Healthcare Co Inc Healthcare Providers & Services

Bio Products Laboratory Ltd 1 341.8 2016.05.19 N/A United Kingdom Creat Group Corp Pharmaceuticals

Bayer AG-Diabetes Care Business 1 307.8 2015.06.10 100 GermanyPanasonic Healthcare Holdings Healthcare Equipment & Supplies

AudioNova International BV 1 096.8 2016.05.04 N/A Netherlands Sonova Holding AG Healthcare Equipment & Supplies

Creganna-Tactx Medical 976.2 2016.02.02 N/ARepublic of Ireland TE Connectivity Ltd Healthcare Equipment & Supplies

SkyePharma PLC 675.4 2016.03.16 100 United Kingdom Vectura Group Plc Pharmaceuticals

Galapagos NV 461.1 2015.12.17 15 Belgium Gilead Sciences Inc Pharmaceuticals

Poli Group Holding Srl 448.2 2015.11.30 100 Italy Almirall SA Pharmaceuticals

Total (TOP deals) 21 185.0

Healthcare

11


Note: Top deals table contains both completed and pending deals where value has been disclosedSource: Thomson Reuters Eikon

TargetValue

(EURm)Date

Percent


EE Ltd 15 105.3 2014.12.15 100 United Kingdom BT Group PLC Telecommunications Services

Alcatel Lucent SA 12 999.6 2015.04.14 85 France Nokia Oyj Telecommunications Services

Vodafone International Holdings BV-Dutch Mobile Operations

5 875.6 2016.02.02 N/A Netherlands Liberty Global-Ziggo'sNetwork

Telecommunications Services

King Digital Entertainment PLC 5 289.0 2015.11.02 100 Republic of Ireland

ABS Partners CV Software & IT Services

Markit Ltd 4 876.1 2016.03.21 N/A United Kingdom IHS Inc Software & IT Services

Cable & Wireless Communications PLC 4 810.3 2015.10.22 100 United Kingdom Liberty Global PLC Telecommunications Services

Telecity Group PLC 3 333.3 2015.05.07 100 United Kingdom Equinix Inc Software & IT Services

Pace PLC 1 904.7 2015.04.22 100 United Kingdom ARRIS Group Inc Media & Publishing

O3b Networks Ltd 1 675.1 2016.04.29 N/A Jersey SES SA Telecommunications Services

Bwin Party Digital Entertainment PLC 1 424.0 2015.05.15 100 Gibraltar GVC Holdings PLC Software & IT Services


TMT

Logistics

TargetValue

(EURm)Date

Percent


TNT Express NV 4 356.1 2015.04.07 100 Netherlands Fedex Acquisition BV Air Freight & Courier Services

Poste Italiane SpA 2 928.3 2016.05.25 N/A Italy Cassa Depositi e Prestiti SpA Air Freight & Courier Services

Mota-Engil Ambiente e Servicos SA-Port & Logistic Business

332.0 2015.09.29 100 Portugal Yildirim Holding AS Marine Services

Parcours SAS 300.0 2016.02.17 100 France ALD Automotive Ltd Transportation, Ground

Piraeus Port Authority SA 281.0 2016.01.21 N/A Greece China Ocean Shipping (Group)

Marine Services

CitySprint UK Ltd 250.1 2016.02.18 100 United Kingdom Investor Group Air Freight & Courier Services

Palletways Group Ltd 211.5 2016.06.01 N/A United Kingdom Imperial Mobility Intl BV Transportation, Ground

GLL Real Estate Partners GmbH-Corridor Logistics Portfolio

200.1 2016.01.19 100 France Logistics SPPICAV Transportation, Ground

Scorpio Tankers Inc-MRS ships(5) 151.0 2016.02.25 N/A Monaco National Chemical Carriers Co

Marine Services

Novorossiiskii mazutnyi terminal OOO 144.9 2015.12.28 50 Russian Federation

Chernomortransneft' Air Freight & Courier Services


TOP 10 CEE transactions in 2016 H1

TargetValue

(EURm)Date

Percent


Tokushukai-Sofia EOOD 83.0 2016.04.21 100 Bulgaria Acibadem City Clinic BV Healthcare Providers & Services

City Hospitals & Clinics AD 43.9 2016.04.21 100 Bulgaria Acibadem City Clinic BV Healthcare Providers & Services

Medika AD Sofia 6.7 2016.01.15 31 Bulgaria Sopharma AD Pharmaceuticals

Swissmed Vascular Sp zoo 6.9 2013.08.29 20 Poland American Heart of Poland SA Healthcare Providers & Services

Green Lab Hungary Engineering Ltd 4.1 2016.01.25 N/A Hungary BATM Advanced Commun Ltd Healthcare Equipment & Supplies

Zdrowie Sp zoo 2.6 2013.05.31 71 Poland EMC Instytut Medyczny SA Healthcare Providers & Services

Pani Teresa Medica SA 2.1 2015.09.10 19 Poland Sigvaris Holding AG Healthcare Equipment & Supplies

PANAX Pharma sro 0.9 2016.04.27 N/A Czech Republic MGC Pharmaceuticals Ltd Pharmaceuticals

Medica Pro Familia SA 0.4 2016.03.24 8 Poland Neuca Med Sp zoo Healthcare Providers & Services

Total (TOP deals) 150,5

Healthcare

12


TMT

TargetValue

(EURm)Date

Percent


Omnitel UAB 213.2 2015.10.06 100 Lithuania TEO LT AB Telecommunications ServicesCeska Telekomunikacni Infrastruktura as 99.0 2015.11.03 5 Czech Republic PPF A4 BV Telecommunications ServicesStarman AS 86.1 2016.03.14 N/A Estonia Providence Equity Partners LLCSoftware & IT Services

Provus Services Provider SA 32.1 2016.02.29 100 Romania Wirecard AG Software & IT ServicesCentrum Technologii Mobilnych Mobiltek SA 27.1 2015.12.30 100 Poland MCI EuroVentures 1 0 FIZ Software & IT ServicesSMT Software Services Sp zoo SKA 25.2 2015.09.17 100 Poland Creston Investments Sp zoo Software & IT ServicesCentrum Rozliczen Elektronicznych PolskieePlatnosci SA

16.8 2015.08.06 50 Poland Investor Group Software & IT Services

Agora SA 15.4 2016.06.06 11 Poland MDIF Media Holdings I, LLC Media & PublishingNortal AS 15.0 2016.06.20 50 Estonia Nortal Group Holding AS Software & IT ServicesPetit Press as 15.0 2014.10.15 45 Slovak Republic Penta Investments sro Media & Publishing

Total (TOP deals) 544.9

Logistics

Note: Top deals table contains both completed and pending deals where value has been disclosedSource: Thomson Reuters Eikon

TargetValue

(EURm)Date

Percent


ORLEN Transport SA 20.0 2015.11.16 100 Poland Tp Sp zoo Air Freight & Courier Services

Sealand Logistics Sp zoo 11.6 2016.05.06 N/A Poland C Hartwig Gdynia SA Marine Services

Trans Polonia SA 4.2 2016.01.22 47 Poland Investor Group Transportation, Ground

Balticon SA 1.9 2016.05.10 26 Poland Buyout Co Sp zoo Marine Services

Balticon SA 1.1 2016.05.10 N/A Poland Buyout Co Sp zoo Marine Services

Total (TOP deals) 38.9

13

Definitions and notes

Definitions

TEV - “Total Enterprise Value”TEV is an economic measure reflecting the market value of a whole business independent of a business’ capital structure. Theanalysis in this document calculates TEV as follows:• For transaction data, by reference to the target company of each transaction, from the transaction consideration, share of

equity acquired, and other disclosed details such as the target’s net debt, as at the transaction date,• For listed company data, from the listed share price of each company, together with known details of its capital structure

including issued shares and net debt, as at the stated date.

EBITDA - “Earnings Before Interest, Tax, Depreciation and Amortisation”EBITDA is a business’ net income with interest, taxes, depreciation and amortisation added back which is often taken as a proxyfor the cash generation rate of a business. The analysis in this document calculates EBITDA as follows:• For transaction data, by reference to the target company of each transaction, from the most recent known historic 12

months’ reported value as at the transaction date,• For listed company data, from the most recent known historic 12 months’ reported value as at the stated date.

TEV/Sales - “TEV/Sales Multiple”The TEV/Sales Multiple is calculated for each listed company where the required data is disclosed.In the report the median of company multiples was applied.

TEV/EBITDA - “TEV/EBITDAMultiple”The TEV/EBITDA Multiple is calculated for each listed company where the required data is disclosed.In the report the median of company multiples was applied.

SectorsThe sector classifications used in this document are Globalscope and Heal Partners defined aggregations of similar businessactivities based on sub-sectors defined by reference to the primary Capital IQ industry classification as follows:• For transaction data, the target company of each transaction,• For listed company data, each listed company.

RegionsThe regional classifications used in this document are defined by reference to the Capital IQ regional classification as follows:• For transaction data, the target company of each transaction,• For listed company data, each listed company.

CEE RegionCEE Region includes Bulgaria (BG), Croatia (HR), the Czech Republic (CZ), Hungary (HUN), Poland (PL), Romania (RO), Serbia (SRB),Slovakia (SK), Slovenia (SLO), Estonia (EST), Latvia (LV) and Lithuania (LT)

Data supplied by: Analysis performed by:

Documents

Healthcare, Logistics, TMT in Europe and in CEE in 2016 H1 · Heal Partners Newsletter Healthcare Healthcare, Logistics, TMT in Europe and in CEE in 2016 H1 in association with Telecom,