1
New Europe Corporate Advisory Ltd.
Company presentation
2
Table of Contents
Section 1 NECA Profile
Section 2 Credentials
Section 3 Partnership with EPIC
Section 4 Contacts
3
Section 1
NECA Profile Company, Services
4
Company Presentation and Proposal for Cooperation
Company Profile History and Current Status
NECA Profile New Europe Corporate Advisory, Ltd. (“NECA”) is a Sofia-based corporate finance and
consulting boutique. NECA offers advisory services, including M&A, privatization,
finance-raising, balance-sheet restructuring, and licensing tenders. NECA also has
established partnerships with leading international management consultants to provide
restructuring, profit optimization and post-merger integration consulting. Since 1996
NECA has gained valuable knowledge and experience in a variety of sectors shaping
today’s economy and has accomplished a strong track record of transactions in Bulgaria
and across its borders.
NECA Advantages
Broad spectrum of expertise and rich industry experience: construction, electronics, energy, financial services, FMCG, logistics and transport, real estate, manufacturing.
Participation in all major energy transactions in Bulgaria from power generation and district heating to electricity and gas distribution.
Cross-border and cross-sector capability.
Each project gets partner or senior level involvement.
NECA History
Established 1996 as EPIC Bulgaria
In 2004 the company changed its name to NECA, when Mr. Kenneth Lefkowitz undertook an MBO, and became owner and Managing Partner.
Remains part of the EPIC network through a cooperation agreement.
Shares the EPIC expertise, contacts, and brand name, but with the flexibility to work with a range of partners.
Since November 2010, in cooperation with EPIC, covers all of southeast Europe, with priority focus on Bulgaria, Romania, Macedonia, Albania, and Kosovo.
5
Services Diverse Expertise
Mergers & Acquisitions
Business planning and financial modelling
Target identification and selection
Due diligence, valuation and deal structuring
Strategic advice and negotiation support
Finance Raising
Strategy articulation and business plan development
Identification of potential investors and pre-marketing
Preparation of information memoranda, valuation and deal structuring
Investor due diligence facilitation
Negotiation support and closing
Regulatory Advisory
Economic analysis of current frameworks in regulated utilities and forecast of future
regulatory developments
Regulatory financial modelling with a view to the impact on valuations
Management Consulting (in cooperation with partners)
Post-merger integration
Process optimization, cost cutting, and profit improvement
Strategic consulting
Company Presentation and Proposal for Cooperation
6
Section 2
Credentials Recent Successes, Track Record by Sector
7
NECA Credentials
Recent Successes Real Estate, Property and Equipment
NECA Credentials
Success Stories Energy 1/2
8
9
NECA Credentials
Recent Successes Energy 2/2
10
NECA Credentials
Recent Successes Financial Institutions
11
NECA Credentials
Recent Successes Finance Raising
12
NECA Credentials
Track Record Electronics, Insurance, FMCG, Logistics, Real Estate (1/3)
NECA acted as a buy-side advisor to Demax Holograms on the
acquisition of property, plant and equipment from Kodak
Graphic Communications Bulgaria.
NECA did a thorough financial and organizational due diligence on
one of the largest Bulgarian public construction enterprises
and drafted recommendations for immediate measures to be
taken for liquidity improvement and long term financial and
operational performance improvement in the enterprise.
Together with A.T. Kearney, NECA advised the Bulgarian State
Railways (BDZ) – Passenger Transportation Ltd. on the
development of an organizational structure based on a
process model that will be conducive to achieving higher work
effectiveness and that will be complaint with the requirements
imposed on companies conducting public transportation
services. NECA also assisted BDZ with the preparation of a
business plan, with conceptualizing the marketing strategy of
the company and with drafting a methodology for the expense
allocation that were all a prerequisite for BDZ’s participation in
the tender for a public transportation services provider.
Together with A.T. Kearney, NECA advised the Bulgarian State
Railways (BDZ) – Cargo Ltd. on the development of an
organizational structure based on a process model conducive
to cost cutting, higher effectiveness, and better consumer
service. NECA also participated in drafting the implementation
strategy for the proposed changes.
2009
2009
2009
2013
13
NECA Credentials
Track Record Electronics, Insurance, FMCG, Logistics, Real Estate (2/3)
NECA and EPIC advised Eurohold Bulgaria on its successful
acquisition of insurance company Inter Sigorta A. S.
(Turkey). The mandate covered market analysis,
meetings with possible targets, valuation, due diligence
coordination, offer preparation, negotiations support,
and securing regulatory approvals.
NECA is advising a leading electronics manufacturer based
in Bulgaria on its expansion in Europe through
acquisitions. NECA’s services include sector research
and analysis, liaison with possible targets, deal
structuring and execution, and securing debt and equity
financing for the acquisition.
NECA is advising the owners of a bottling company for
mineral water and soft drinks in Bulgaria on the sale of
the company to a strategic or financial investor.
NECA and Foltin Consult GmbH are advising a leading
European railway operator on carrying out an
acquisition of a transport and logistics company in
Bulgaria. The advisors are responsible for due diligence
coordination, negotiations support, and deal structuring.
NECA is mandated by a leading real estate brokerage to look
for equity partners to allow the company to consolidate
the local market and expand on the Balkans.
2008
2008
2008
2009
2007
CONFIDENTIAL
CONFIDENTIAL
2008
CONFIDENTIAL
CONFIDENTIAL
14
NECA Credentials
Track Record Insurance, Logistics, Electronics, Construction, Manufacturing (3/3)
NECA and EPIC advised Eurohold Bulgaria on its successful
acquisition of insurance company Asitrans Asigurari S.A.
(Romania). The advisors were responsible for doing a
market research, liaison with possible targets, valuation, due
diligence support and preparation of the share purchase
agreement.
NECA together with COM Partners advised a leading European
logistics company on its expansion to Bulgaria through
acquisition. NECA’s services include sector research and
analysis, liaison with and presentation of local transport and
logistics providers, as well as advice on the acquisition.
NECA successfully advised Magnetic Head Technologies
(Bulgaria), a leading European producer of magnetic heads,
on raising debt for funding its sales growth and expanding
product lines into new technologies. NECA supported the
client in business plan preparation, financial modelling,
transaction structuring and evaluating and negotiating a
strategic banking relationship.
NECA advised a European producer of paints and varnishes on
its expansion in Bulgaria. The mandate involved a political,
economic, and sector overview, as well as a presentation of
potential acquisition targets.
NECA advised Castel on a business development project. Castel is
the largest Bulgarian window frame and façade
manufacturer.
CONFIDENTIAL
2005
2003
2004
CONFIDENTIAL 2006
2007
15
NECA Credentials
Track Record Energy (1/3)
CONFIDENTIAL
Together with A.T. Kearney NECA advised CEZ on a major
corporate restructuring of its Bulgarian subsidiary in compliance
with local regulatory requirements.
2006-
2008
NECA helped EdF Energies Nouvelles with due diligence on its
potential acquisition of a 22.5 MW wind power project in
Bulgaria, and prepared a report on the Bulgarian renewables
power market (price forecasts and overview of regulatory
frameworks).
2008
NECA and EPIC advised a consortium of Enel and Sencap on
its bid and physical and financial hedging strategy for a
greenfield lignite-fired TPP in Kosovo.
2007-
2009
NECA advised E.ON on site selection and acquisition for a
future planned power plant.
2008
2009
NECA acted as a sell-side advisor to a Bulgarian developer of
a 39MW wind power project.
2008
2010
2010 NECA advised a Bulgarian developer on the sale of a 10.6
MW wind power project to a Turkish investor and on securing
a balance-of-plant construction contract for the project.
2010 NECA advised the owner of a thermal power plant on financing
options and strategy
2012
2011 NECA is advising E.ON AG on strategic options for its energy
distribution business in Southeast Europe.
CONFIDENTIAL
NECA acted as a buy-side advisor to Clean Energy
Transition Fund for the acquisition of a 5MW solar power
project in Bulgaria. NECA advised on country strategy, market
survey, and transaction and financing structure.
2012 CETF
16
NECA Credentials
Track Record Energy (2/3)
NECA advised Enel on the acquisition of a hydro power plant
in Bulgaria. NECA’s scope of work includes valuation,
preparation of a strategy for negotiations with the owners of the
plant, due diligence support and coordination, and assistance in
bid preparation.
CONFIDENTIAL
NECA advised a consortium led by Enel on its bid on the
acquisition of a 20 MW wind power project in Bulgaria.
NECA and EPIC advised a major European energy company
on its bid for the West Region gas distribution license. NECA
was responsible for the preparation of a regulatory financial
model, as well as bid strategy and lobbying.
Supported New Europe Capital Partners in ongoing pre-
feasibility assessment work regarding wind power development.
NECA advised ENER-G on its bid for the privatization of District
Heating Company Varna (DHC Varna). NECA was responsible
for preparing a valuation model for DHC Varna.
NECA and EPIC, jointly with A.T. Kearney, advised ENEL
S.p.A. in its bid in the privatization of Bulgarian power
generation companies (TPP Varna, TPP Bobov Dol and
DHC Russe). NECA acted as the regulatory and market
consultant for the client with its scope covering regulatory
framework, fuel and power market analysis.
2006
2007
2007
2006 -
2007
2006
2005
NECA and EPIC advised E.ON on its bid for construction and
operation of NPP Belene in Bulgaria. 2008
17
NECA Credentials
Track Record Energy (3/3)
2003
NECA and EPIC successfully advised AMGA (Italy) and its
Bulgarian subsidiary Black Sea Technology Company on
acquiring gas distribution licenses for Moesia Region and
Dobrudza Region.
2004
NECA and EPIC, jointly with A.T. Kearney, advised Enel on its
bid in the privatization of Bulgarian electricity distribution
companies.
2004
NECA and EPIC, jointly with A.T. Kearney, advised Enel S.p.A.
on its bid in the gas distribution license tenders for the Trakia
Region and the West Region. The consortium was
responsible for the preparation of bid documentation (including
business plan and regulatory financial model), and for
coordination of regional market studies.
2004
NECA and EPIC advised Dalkia International on bidding in the
privatization of DHC Pleven. NECA’s scope involved advice on
bid strategy and deal structure, regulatory financial modeling
and valuation as well as lobbying and due diligence
coordination.
2004
NECA supported the State Energy and Water Regulatory
Commission with pre-transaction advice, analysis of other
countries’ experience in gas distribution licensing and
liberalization and prepared a strategy for the retail gas market
development as part of the World Bank sponsored project
Bulgaria: Development of Natural Gas Networks.
NECA advised a consortium of New Europe Capital Partners
and Reform Capital on a bid for 104 MW of hydropower
assets in Bulgaria.
2004 Reform Capital
18
NECA Credentials
Track Record Telecommunications
NECA successfully consulted Neterra on debt finance
raising for a cross-border terrestrial network.
NECA was responsible for supporting business plan
preparation, financial modelling, transaction
structuring and negotiating with banks. Neterra is a
leading alternative communications carrier offering
international satellite and terrestrial connectivity.
NECA advised a major European telecom on its bid for
the acquisition of a Bulgarian mobile operator.
NECA was responsible for procuring local
information and supporting the financial advisor in
developing the valuation.
CONFIDENTIAL
2004
2004
19
NECA Credentials
Track Record Other Mandates
Year Client Transaction
2002
Multinational logistics firm Acquisition of a Bulgarian target
Nadejda Fund and Celest Ltd. Sale of strategic stake in Alen Mak
Castel Trade sale
2001
Multinational food & beverage firm Acquisition of a Bulgarian target
Bulgarian American Enterprise Fund Trade sale of a leading Bulgarian poultry processor
Alexandra Group Equipment financing for DVD authoring venture
Nadejda Fund Sale of strategic stakes in Kaliakra and Solvay Sodi
US Meds Venture capital financing
2000
Dutch strategic investor Bid for the acquisition of Kaliakra AD, the largest Bulgarian oilseed refinery
Cosmoghar Advised on a privatization bid for Alen Mak
Alexandra Group Strategic partner search and real estate financing for multiplex cinema development
Leading Bulgarian IT firm Strategic partner search
1999 Alexandra Group Advised on first national broadcast TV license tender
Castel Debt restructuring
1998
Borsod Chem Acquisition of a Bulgarian target
Nadejda Fund Sale of strategic stake in Plevensko Pivo Brewery
Private equity investor Acquired a 15% equity stake of Alen Mak, a leading Bulgarian cosmetics producer
20
New Europe Corporate Advisory
Team Short CVs of the Partners
Mr. Kenneth Lefkowitz is Managing Partner at New Europe Corporate Advisory
Ltd. (NECA), a corporate finance and consulting boutique for South-East Europe.
Through NECA and the Bulgarian Wind Energy Association, of which Mr.
Lefkowitz is member of the Supervisory Board, he is working actively to attract
investments in the energy sector, including in renewable energy. Mr. Lefkowitz is
an investment banker with a rich transaction experience including
privatization/M&A advisory, asset management, real estate development, licensing
tenders, and private placements. From 2000 to 2003 he served as Director of
Nadejda Privatization Fund. Mr. Lefkowitz also served on the Board of Directors of
Alen Mak, a cosmetics leader at that time. He is a past President of the American
Chamber of Commerce in Bulgaria. Currently, Mr. Lefkowitz is a member of the
Advisory Board of the Institute for Market Economics.
Kenneth Lefkowitz
Managing Partner
Mr. Chorbadjiev is Managing Partner and senior consultant on energy and
infrastructure to NECA, which is heavily involved in development of wind power
projects and other types of renewable energy. Prior to joining NECA, Mr.
Chorbadjiev served as head of RWE’s representative office in Sofia, with
extensive involvement in the fields of energy, water, environment and construction.
His career includes also a number of senior management positions in Bulgarian
enterprises, including Technica and Isotimpex. Mr. Chorbadjiev has advised the
Bulgarian government in the field of foreign investments and for total 10 years
served as trade representative of the Republic of Bulgaria to Japan and Germany. Ivan Chorbadjiev
Managing Partner
21
Section 3
Partnership with EPIC EPIC Profile, Network, Awards & Ranking
22
Partnership with EPIC
EPIC Profile Short Presentation of EPIC
EPIC Group
Founded in 1989
Over 200 employees
Presence in 16 countries
Cross-border transactions
Advisory Services
Sale and acquisition of enterprises
Creation of joint ventures
Privatization of state owned assets
Sale and purchase of licenses
Research
Financial and management structures
Project and corporate finance
Public and private offerings of debt and equity
Management buy-outs and buy-ins Advantage
Focus on Central and Eastern Europe
Multi-domestic network
Local know-how
Result-oriented approach Proven Success
Over 300 successfully closed transactions
Since 2002 over 50 transactions with a total volume of more than USD 3.1 billion were successfully closed
EPIC - Top Privatization Advisory House in Central and Eastern Europe
23
Partnership with EPIC
EPIC Network Presentation, Advantages
In-depth local market knowledge and transaction
execution • EPIC positioned itself as one of the leading providers of
advisory services to international clients and Governmental
institutions
Multi – domestic network • EPIC's country-based network capitalizes on local expertise in a
widely diverse but homogenous region
• Close contacts with key policy makers and business leaders
increase deal flow and reduce execution risk
Large, experienced team • The EPIC team is one of the largest in CEE.
• The variety of the background of the individuals – industrial,
financial, consulting, entrepreneurial and legal – provide the
resources to execute the most complex transactions.
24
Partnership with EPIC
EPIC Awards & Ranking Awards, Rankings, Successful Deals
European Market Research Center (EMRC)
#1 in M&A in CEE, Russia and CIS in 2002, 2003 & 2004
M&A Review (Dealogic-Compusoft)
EPIC ranked 7th in Top Ten M&A advisors in Eastern Europe for 2000-2001
Privatization International
#1 for number of privatization deals completed in CEE in 1997 and 1998 League Tables.
EPIC ranked #4 for number of privatization deals completed worldwide in 1999 League
Table
Top Five in CEE privatization in 1996 and 1997 League Table
#1 in CEE privatization in 1995 League Table by transaction value ($2,442 million)
Central European
Award for excellence as Best Privatization Advisory House in CEE, 1997
Award Winning Deals of the Year 1999
Telecoms Privatization Deal of the Year – acquisition of a 35% stake in Croatian
Telecom by Deutsche Telecom
Czech Republic Deal of the Year – sale of a 66.67% stake in Lachema to Pliva
25
Section 4
Contacts
26
Contacts
Contact Information NECA, EPIC
NECA
New Europe Corporate Advisory Ltd.
9 Narodno Sabranie Square
BG-1000 Sofia
tel.: +359 (2) 988-7390
web: http://www.necadvisory.com
Kenneth Lefkowitz
Managing Partner
mob: + 359 888 637-053
e-mail: [email protected]
EPIC
Peter Goldscheider
Managing Partner
tel: +43 (1) 501-1910
e-mail: [email protected]
web: http://www.epicinvest.com