T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

The Finnish Venture Capital Association

Private Equity in Finland2009

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Methodology

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

• The following preliminary statistics describing the Finnish private equity industry are based on information received from PEREP_Analytics -private equity database

– A fully functional, centralised non-commercial pan-European private equity database

– With its own staff, internal resources and webportal– Information is collected via an online survey and complemented with

public sources of information

• Figures are updated continuously and are therefore subject to change

Methodology

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

• The following national private equity associations are participating in PEREP_Analytics:

Methodology

APCRI (Portugal)AVCO (Austria)BVA (Belgium)BVK (Germany)CVCA (the Czech Republic)CVCA (Kroatia)DVCA (Denmark)EstVCA (Estonia)EVCA (Europe)FVCA (Finland)

HVCA (Hungary)IVCA (Ireland)NVCA (Norway)NVP (the Netherlands)PPEA (Poland)SECA (Switzerland)SEEPEA (South Eastern Europe)SLOVCA (Slovakia)SVCA (Sweden)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

• Investments are aggregated via two methods – industry statistics and market statistics

Industry statistics

– By country of private equity firm

– Investments and divestments made by Finnish private equity firms to Finland and abroad

Market statistics

– By the location of the portfolio company

– Investments and divestments to Finnish portfolio companies made by domestic and foreign private equity firms

Methodology

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

• Stage definitions (investment tables)

Methodology

Seed Seed

Start-up Start-up, Other early stage

Later stage venture Later stage venture, Bridge financing

Growth Growth

Rescue/Turnaround Rescue/Turnaround

Replacement CapitalSecondary purchase/Replacement capital, Refinancing bank debt

BuyoutsManagement buyout (MBO), Management buyin (MBI), Public to Private, Other PIPE, Other leveraged buyout

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Statistics- Private Equity in Finland 2009 -

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Independent Funds Raised 1996 – 2009

Source: PEREP Analytics, FVCA

Note: Independent Funds Raised = Total Funds Raised – Realised Capital Gains – Amount Raised by Captives

194297 319

640548

321

657

117186

542

434

989908

164

0

200

400

600

800

1000

1200

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

M€

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Total Investments1996 – 2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

84136 192

285

397340 391 328 369 313 350

877

360 362137205

265325

418 449 462 435419 423

458 468406 350

0

100

200

300

400

500

600

700

800

900

1000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

M€ Nbr

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Investments1996 – 2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

Before2008: Venture = Seed, Start-up, Expansion, Rescue/Turnaround, Buyout= Replacement capital, Buyouts

Year 2008 and 2009: Venture = Seed, Start-up, Later stage venture, Buyout = Rescue/Turnaround, Replacement capital, Growth, Buyouts

4099 119

177262 287

261192 215 188 248

374

117 824437

73108

135 53 130136 154

125102

503

243 280117

166226

288

375 413 433399 370 373

414 407

313 257

20 39 39

37 43 36 29 36 49 50 44 6193 93

0

100

200

300

400

500

600

700

800

900

1000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Venture (M€) Buyout (M€) Venture (Nbr) Buyout (Nbr)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Quarterly InvestmentsQ1/2006 – Q4/2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

Before2008: Venture = Seed, Start-up, Expansion, Rescue/Turnaround, Buyout= Replacement capital, Buyouts

Year 2008 and 2009: Venture = Seed, Start-up, Later stage venture, Buyout = Rescue/Turnaround, Replacement capital, Growth, Buyouts

Quarter

M€ Nbr M€ Nbr

Q4/2009 29 81 68 31

Q3/2009 12 50 165 24

Q2/2009 14 52 25 20

Q1/2009 27 74 21 18

Q4/2008 45 106 85 21

Q3/2008 13 50 64 19

Q2/2008 30 94 57 29

Q1/2008 30 63 37 24

Q4/2007 59 119 26 17

Q3/2007 150 76 221 17

Q2/2007 135 112 163 6

Q1/2007 30 100 93 21

Q4/2006 85 109 35 12

Q3/2006 43 105 5 5

Q2/2006 67 101 40 14

Q1/2006 54 99 22 13

Venture Capital Buyout

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Investment Amounts by Investment Stage2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

Seed3 % Start-up

12 %

Later Stage Venture

8 %

Growth5 %

Buyout23 %

Replacement Capital

42 %

Rescue / Turnaround

7 %

362 M€2009

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Number of Investments by Investment Stage2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

Seed23 %

Start-up40 %

Later Stage Venture

11 %

Growth4 %

Buyout12 %

Replacement Capital

6 %

Rescue / Turnaround

4 %Nbr 350

2009

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Distribution of Investment Amounts by Investor Type 2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

Independent317,1

Captive22,9

Public sector21,6M€

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Sectoral Distribution of Investments2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

4

12

16

8

5

7

26

26

21

52

94

79

0,5

3,5

4,4

5,7

6,0

13,0

13,9

15,7

17,7

28,9

30,0

222,1

0 50 100 150 200 250

Other

Business and industrial services

Consumer services: Other

Construction

Transportation

Chemicals and materials

Energy and environment

Communications

Consumer goods and retail

Life sciences

Computer and consumer electronics

Business and industrial products

M€

Nbr

Other = Financial Services, Real Estate, Agriculture, Unknown

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Divestments at Cost1996 – 2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

14 1656 62

99116 105

231262

299

399

648

143121

2 10 729 38 52

29 2543 45

15 13

0

100

200

300

400

500

600

700

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Divestments (M€)

Write-offs (M€)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Divestments at Cost by Method2009 (industry)

Source: PEREP Analytics, FVCAIndustry statistics = by country of private equity firm

M€ 87,4 71,9 %

13,4 M€11,0 %

10,7 M€8,8 %

5,8 M€4,7 %

2,4 M€2,0 %

1,0 M€0,8 % 0,9 M€

0,7 % 121 M€2009

Divestment by Trade Sale

Divestment by Write-Of f

Sale to Management (MBO)

Sale to Another PE Player

Repayment of Principal Loans

Sale of Quoted Equity

Divestment by Other Means

Other (0)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Investments2008 – 2009 (market)

Source: PEREP Analytics, FVCAMarket statistics = by country of portfolio company

Venture = Seed, Start-up, Later stage ventureBuyout = Growth, Buyout, Rescue/Turnaround, Replacement capital

136 87

493 568

320251

118 106

0

100

200

300

400

500

600

700

2008 2009

Venture (M€) Buyout (M€) Venture (Nbr) Buyout (Nbr)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Quarterly InvestmentsQ1/2008 – Q4/2009 (market)

Source: PEREP Analytics, FVCA

Venture = Seed, Start-up, Later stage ventureBuyout = Growth, Buyout, Rescue/Turnaround, Replacement capital

Market statistics = by country of portfolio company

Quarter

M€ Nbr M€ Nbr

Q4/2009 28 80 50 31

Q3/2009 15 45 254 28

Q2/2009 19 53 42 26

Q1/2009 26 73 222 21

Q4/2008 48 107 92 22

Q3/2008 33 56 157 30

Q2/2008 35 95 171 35

Q1/2008 20 62 74 31

Venture Capital Buyout

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Investment Amounts by Investment Stage2009 (market)

Source: PEREP Analytics, FVCAMarket statistics = by country of portfolio company

Seed2 % Start-up

7 %Later Stage

Venture5 %

Growth7 %

Buyout39 %

Replacement Capital36 %

Rescue / Turnaround

4 %655 M€2009

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Number of Investments by Investment Stage2009 (market)

Source: PEREP Analytics, FVCAMarket statistics = by country of portfolio company

Seed22 %

Start-up37 %

Later Stage Venture

11 %

Growth8 %

Buyout11 %

Replacement Capital

6 %

Rescue / Turnaround

5 %Nbr 357

2009

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Sectoral Distribution of Investments2009 (market)

Source: PEREP Analytics, FVCAMarket statistics = by country of portfolio company

4

16

8

5

24

16

22

10

27

90

59

76

0,5

4,4

5,7

6,0

12,1

12,9

18,0

19,3

24,0

36,0

238,7

277,2

0 50 100 150 200 250 300

Other

Consumer services: Other

Construction

Transportation

Energy and environment

Business and industrial services

Consumer goods and retail

Chemicals and materials

Communications

Computer and consumer electronics

Life sciences

Business and industrial products

M€

Nbr

Other = Financial Services, Real Estate, Agriculture, Unknown

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Divestments at Cost2008 – 2009 (market)

Source: PEREP Analytics, FVCAMarket statistics = by country of portfolio company

340

126

8 12

0

50

100

150

200

250

300

350

400

2008 2009

Divestments (M€)Write-offs (M€)

T H E F I N N I S H V E N T U R E C A P I T A L A S S O C I A T I O N

Capital Under Management and Active Portfolio of the Finnish Private Equity Firms 2009

Source: PEREP Analytics, FVCA

31.12.2009

Capital Under Management 5,3 Mrd. €

Active Portfolio 2,5 Mrd. €