http://idcee.org/p/tomasz-czechowicz-mci-management-sa/ Tomasz Czechowicz - a graduate of Wroclaw University of Technology, Warsaw School of Economics and Executive MBA at the University of Minnesota. In the years 1990-1998 Co-founder and CEO of JTT Computer SA, which he build into a leading Central European PC-assembly and distribution operations with USD 100M+ revenue. From May 1998 Founder and CEO of MCI Group. After acquisition of funding throw IPO on the Warsaw Stock Exchange in 2001 the value of MCI’s investment portfolio grew from USD 8M to more than USD 200M. MCI is one of the most dynamic private equity groups of multistage character in the Central and Eastern Europe. Currently, with the use of 6 PE/VC funds: MCI.EuroVentures, MCI.TechVentures, MCI.BioVentures, MCI.CreditVentures, Helix Ventures Partners, Internet Ventures, MCI implements early stage, growth stage and expansion/buy-out stage investments in the sectors of new technologies and healthcare in Central Eastern Europe, as well as Germany and Austria (DACH), Turkey and the countries of the former Soviet Union (CIS). Pic's are here: http://www.flickr.com/photos/idcee/sets/ More @ http://idcee.org Follow us on: YouTube: http://www.youtube.com/user/OfficialIDCEEChannel Facebook: https://www.facebook.com/IDCEE Linkedin: http://www.linkedin.com/groups/IDCEE-3940138 Twitter: https://twitter.com/idcee_eu Google+: http://gplus.to/idcee Flickr: http://www.flickr.com/photos/idcee/collections/

1. "Building Emerging Europe Champions as a good way
for non-Sillicon Valley players"
IDCEE Conference 2013, Kiev
presented by Tomasz Czechowicz, Managing Partner, MCI Management SA

2. MCI Management SA
Expansion Capital
Growth Capital
Venture Capital
 Founded in 1999, is the leading Internet and TMT investor in the Emerging Europe region.
 Managing team - high-class specialists, uniquely combining knowledge and years of experience in the fields of
business development , finance and technology investments.
 The Group executed a total of over 50 investment projects and executed nera 30 full exits.
 The value of assets under management is over 957 million PLN
 Between 1 January 1999 and 30 June 2013 MCI reached net rate of return (net IRR) on the level of 19.10% and
ranked among the top of European private equity funds.

3. Development of MCI in the years 1999-2012
•
•
Creation of
MCI Sp. z o.o.
1999
IPO on Warsaw Stock
Exchange
2000
2001
Pioneer public market emission of
five-year convertible bonds
(for the first time by an
investment fund)
2002
2003
2004
2005
•
Creation of MCI Capital
TFI SA
Pioneer IPOs of MCI
portfolio companies on
NewConnect market on
the first day of trading
2006
2007
•
•
•
2008
Launch of first fund with
cofinancing from NCF and
PARP
Full exit from Bankier.pl
(trade sale)
entering Private Banking
segment
Pioneer debut of MCI bonds
on the first day of trading on
Catalyst market
2009
•
Transformation into
MCI Management SA
Portfolio
restructuring
•
•
•
First full investment exit
(Process4E)
First IPO of portfolio
company
(Travelplanet.pl)
First buy-out
(ABC Data)
•
•
2010
Share repurchase
(about 3% publicly
traded shares)
2011
2012
Creation of Internet
Ventures
(together with NCF and IIF)
Launch of
MCI.ImmoVentures
IPO of ABC Data
RECORD-BREAKING YEAR
• Net assets 572.1 million PLN
• New investments 95 million PLN
(first projects in Russia and Germany)
• Exits 200 million PLN, incl. record-breaking
exit from Mall.cz for 38 million EUR

4. The Leading Emerging Europe Technology Growth Investor
300M$ assets under management
200M$ own long term capital
Investment Strategy
50+ investments and 30 exits since 1999
Investment Team
Executive Partners :
 Situation focus :
 building regional champions with
proven, fast-growing business
models in Emerging Europe
 supporting candidates for
global champions
 supporting European champions in
their expansion into Emerging Europe
 supporting the champions of traditional economy in their transition
to the digital economy
 Sector focus:
 e-commerce, cloud computing, fintech, BigData
 digital healthcare / lifescience
 mobile / digital entertainment, Internet / e-commerce enablers,
Internet / e-commerce adaptation
 Tomasz Czechowicz (CEO)
http://www.linkedin.com/profile/view?id=665288&
locale=en_US&trk=tyah
 Sylwester Janik (Fund Manager MCI.TechVentures)
 Norbert Biedrzycki (Fund Manager MCI.EuroVentures)
 Magda Pasecka (CFO, PEM Project Manager)
 Wojciech Marcińczyk (Fund Manager MCI.CreditVentures)
Investment Partners :
 Tomasz Danis (Fund Manager Internet Ventures)
 Ilona Weiss (ABC Data Project Manager)
Investment Managers :
 Nicolas Jedraszak (Fund Manager Helix Venture Partners)
 Fabian Bohdziul (MCI.EuroVentures)
 Norbert Kruszewski (Internet Ventures)
Investment Funds
Investment area: TMT,
finance/business services,
e-commerce, distribution
Investment value:
15 - 35 mln EUR
AUM: 332 mln PLN
Investment area:
Investment area:
e-commerce, mobile , Internet, mezzanine for technology
companies
digital media
Investment value:
Investment value:
1 - 15 mln EUR
1,5 - 25 mln EUR
AUM: 54 mln PLN
AUM: 333 mln PLN
Investment area: cloud
computing, Internet, software,
mobile/wireless
Investment value:
1,5 mln EUR +
AUM: 40 mln PLN
Investment area:
digital media, Internet,
software, mobile/wireless
Investment value:
1,5 mln EUR +
AUM: 100 mln PLN

5. The Leading Emerging Europe Technology Growth Investor
syndicate Partner of Intel Capital
Company specialised in asset
management.
member of Polish Private Equity Association
Key Investments / Exit Value 100M + PLN
Strategia inwestycyjna
CEE: consumer electronics,
dystrybucja, e-commerce
Leading distribiutor.
listed on Warsaw Stock Exchange
Germany: e-commerce
e-babycare leader
Poland: consumer electronics,
e-commerce – IT/consumer
electronics market leader
Russia: e-commerce
e-fashion market leader
Poland: e-commerce
Poland: e-commerce; Leader of egrocery market among pure players Leading online e-fashion shop
CEE & CIS: e-commerce
e-travel market leader
Leading IT group
in Turkey.
Czech Republic: digital entertainment
Online games publisher and developer
Other portfolio companies
Leading online store offering luxury,
custom ordered jewelery.
Leader in online sales
of ladies lingerie.
Innovative diet
supplement producer.
Advanced navigation
app for mobile.
Innovative tools for
legal industry.
Financial product
comparison engine.
ImmoPlanet
The first company in Poland to offer
mobile advertising to clients.
Real estate commercialisation
via virtual tools.
Medical diagnosis, DNA
analysis.
One of the largest distributors of search
engine and contextual ads in Poland.
NAV in the years 1999 - 2013
AUM in the years 1999 - 2013
740
155
24
50
41
23
AUM w mln. PLN
572
498 526
NAV w mln. PLN
15
16
25
207
763 788 830
266
55
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F
35
71
74
39
33
41
55 117
237 303
1100
418
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F

6. Exit Trackrecord (30.06.2013)
IPO
listing
Year of invest.:
2008
Year of recap.:
2013
Net IRR:
43,4%
Year of invest.:
2005
Year of dinvest.:
2013
Net IRR:
n/d
Year of invest.:
2007
Year of dinvest.:
2012
Net IRR:
n/d
Year of invest.:
2010
Year of dinvest.:
2012
Net IRR:
174,42%
Year of invest.:
2007
Year of first partial
exit: 2008
Net IRR:
29,28%
Year of invest.:
1999
Year of dinvest.:
2011
Net IRR:
14,12%
Year of invest.:
2000
Year of dinvest.:
2011
Net IRR:
59,95%
Year of invest.:
2002
Year of dinvest.:
2011
Net IRR:
104,92%
Year of invest.:
2000
Year of dinvest.:
2009
Net IRR:
30,64%
Year of invest.:
2004
Year of dinvest.:
2008
Net IRR:
189,33%
Year of invest.:
2001
Year of dinvest.:
2010
Net IRR:
17,03%
Year of invest.:
1999
Year of dinvest.:
2008
Net IRR:
8,29%
Year of invest.:
2000
Year of dinvest.:
2005
Net IRR:
20,62%
Year of invest.:
2006
Year of dinvest.:
2012
Net IRR:
9,01%
CKAdax
Year of invest.:
2005
Year of dinvest.:
2008
Net IRR:
83,89%
Year of invest.:
2007
Year of dinvest.:
2008
Net IRR:
109,68%
Year of invest.:
2005
Year of dinvest.:
2007
Net IRR:
74,44%
 Realized exits value: 310,8 mln PLN
 Realized exits value with partial exits: 348,9 mln PLN
Year of invest.:
2010
Year of dinvest.:
2011
Net IRR:
22,13%
Year of invest.:
2004
Year of dinvest.:
2005
Net IRR:
238,26%
Year of invest.:
1999
Year of dinvest.:
2000/2001
Net IRR:
n/d
 IRR: 19,10%
 IRR on realized exits with partial exits: 23,35%

7. Investment strategy: why Emerging Europe?
Assumed % of the investment portfolio
POLAND
CIS
TURCJA
20% - 40%
5% - 15%
5% - 25%
5%
Sources of growth
CEE
Unique experience - MCI Management is present in the region since 2004 / limited competition from other PE / VC / use of a
specific investment potential in the Czech Republic, Hungary and in the Baltic States/ large supply companies that aspire to a
leadership position in the global market(LogMeln , AVG, Avast, GetJear) and regional market (Invia, Netretail, Allegro)
direct funding (round B and C) companies to
achieve market leadership in CEE / Emerging
Europe or other VC investments in companies
with the potential for global leaders
DACH
Partnerships in the early phase of growth with the potential to achieve position of a leader (national / global) /growth phase
(CEE leaders, and Global leaders) / expansion phase (country leaders / area leaders in Central - Eastern Europe / European and
Global leaders )
focus on e-commerce / Marketplaces / ecommerce enablers (round B and C) in
syndication with reputable investors
CIS
investments in the sector in the area of
​Internet / TMT companies, taking into account
the different stages of growth
investments (Round C and D) combined with
international strong partners present on the
market
Already developed relationships with key MCI Management investors / projects and the use of MCI experience for the expansion
of the national leaders in the region in the CEE area ​/ largest Internet market in Europe (Mail.ru, Yandex.ru, Ozone, KupiVip,
Kaspersky) with the largest value of IPOs in the segment / greatest returns for VC / PE (4-10 times higher than the exit-valuation
in Poland) because of the size of the players and potential development of the region
TURCJA
POLAND
Areas of strategy
DACH
25% - 50%
Region
CEE
syndicated investments with reputable
partners
Large market, quickly adapting new technologies, one of the leading markets and economies in Europe and in the world,
exporting experience
MCI Management relationships with leading VCs and incubators in the region / experience in the use of e-commerce and online
media / transition region from the modelcopycat in the model "emerging world champions candidates" eg. CitiDeal / Groupon,
DeliveryHero, Zalando.de, Bigpoint

8. Portfolio management
DACH
CIS
online store with baby care
products
a
leader of the e-fashion
market
leader of the e-travel
market in Russia (Invia.cz's
investment in Travelata)
online store with custommade jewelry
POLAND
CEE
e-grocery market leader
leader in consumer
electronics retail
publisher/developer of
online games
TOP 10 on Facebook
e-fashion market leader
e-travel market leader
leading IT distributor
leading IT distributor
navigation app for mobile
phones
contextual advertising
distributor
financial comparison
engine
TURKEY
leading IT
distributor

9. From National to Regional Champion – ABC Data case
Leading B2B e-commerce platform for IT/consumer electronics distribution on the CEE
market.
 ABC Data S.A. is the market leader in distribution of IT and consumer electronics in Poland and the only company
operating directly in eight countries of Central Eastern Europe. The company has offered computer equipment,
software, consumer electronics and services for over 20 years. ABC data boasts the largest offer on the market, with
over 56,000 products from more than 300 brand-name suppliers.
 Thanks to systematic development and many years of investments in online customer service platforms, the company
has the leading position in online sales.
 In June 2011, ABC Data S.A. began selling consumables under its own private label, Colorovo. Currently, the company
offers more than 400 products under this brand. Since its launch, the brand expanded its product portfolio with
cleaning accessories for computer screens and peripherals. Furthermore, it also introduced computer cases for office
applications and gaming as well as the CityTab tablet. The Colorovo brand products are available throughout the
distribution network of the ABC Data Group, in all countries where the company has its operations.
 Since June 2010, the company is listed on the Warsaw Stock Exchange.
•
•
•
•
•
•
•
• Leveraged buy-out closing
• Partial MBO (management +
key employees)
• Identification of priorities ->
introduction of Aim Appraisal
2008
Full acquisition debt repayment (3 years before due date)
IPO at WSE / PLN 50 M
Merger of SPV with Op-co
Acquisition of Romanian IT distributor / Entry into Lithuania
F/X accounting changes
Stabilization of Optimus warrants
Awarded again the best CEE IT distributor
2009
• Operational improvements leading to
higher margins
• IPO: prospectus + equity story
• Partial acquisition debt repayment
(improvement of CCC)
• Vendor loan restructuring
• Partial MBI
• Awarded the best CEE IT distributor
2010
• B2C e-commerce + cloud
• New products: white goods,
brown goods, mobile,
electroequipment, office
materials + new services
• Entry to BU+ HU
• Further operational optimisations
2011
•
•
•
•
•
Own brand
Partial post IPO exit
Upgrade of management
Post acquisitions operational integration
Entry to Latvia and Estonia
2012

10. Leading B2B/B2C Internet Platform in CEE

11. Invia case – candidate for Emerging Europe Champion
e-Travel market leader in CEE and CIS.
The company was conceived in the Czech Republic in 2002, gaining the leading position on the
online travel market in Czech, Slovakia and Hungary. Invia offers travel packages, hotel bookings and
flights. The company cooperates with over 300 tour operators and offers more than 8000 travel
packages making it the broadest offer on the market. The Invia.cz website has over 210,000
registered users generating about 700,000 unique page views every month. In June 2009, the
company acquired NetTravel.cz giving it control of 60% of the e-travel market in the Czech Republic
and Slovakia. In 2011, the company acquired Travelplanet, the Polish e-travel leader significantly
strengthening its position on the Polish market. In H2 2012, the company began expansion to the
hugely prospective Russian market where it develops its activities through the Travelata project.
Most significant events
• Launch of new version of the
online holiday travel package
website, Travelplanet.pl
• Strengthening the leading
position in online sales of
travel packages in Russia –
Travelata.ru
Consolidated
results of
Invia.cz
2010
2011
2012
∆ in %
2013 est.
revenues
in million
EURO
6.6
9.0
10.5
+19%
12.5
EBITDA
in million
EURO
1.4
1.8
2.5
+10%
2.8

12. Invia case – candidate for Emerging Europe Champion
2002
creation of Invia.cz, as
the fourth player on
Czech e-travel market
2004
commencement of
international
expansion – entering
Slovak market
2003
• Invia takes the lead
on its native market
• Internet Travel Holding
AG invests 11m CZK in
Invia
2006
launch of sales website
in Poland
2007
launch of sales website
in Hungary
2005
breakevenpoint
•
2009
Invia outgrows the other three
significant players in Czech
altogether, acquisition of
NetTravel.cz (2nd largest e-travel
player in Slovakia and 3 rd in Czech
Republic)
2008
investment of MCI
(acquisition of 50,10%
shares)
•
•
~+40% r/r
+80% r/r
in 2012 (organic growth)
and acquisition of
TravelPlanet)
launch of sales website
in Romania
turnover exceeds EUR 65M
2012-2013
Invia expands
into CIS with
Travelata. New
Russian entity
quickly becomes
leader in online
travel packages
2010-2011
Invia & Travelplanet signed the
LOI - aim to merge their
potentials to obtain economies
of scale and make use of the
synergy effects. In 2011 Invia
acquired a controlling stake in
TravelPlanet from MCI

13. Successful regional exit case – Mall.cz (NetRetailHolding)
…generating the pipeline…
MCI has been following Mall.cz since 2006. In 2008 Round B closed without MCI’s participation. MCI identified a number of
risks at this stage related to the IT system, international expansion objectives and key men in the Company. We found also
premoney valuation of the Company as too ambitious vs. the risks and requested funding level. The reality confirmed our
expectation. In 2008-2009 Mall.cz was implementing a new integrated IT system, which led the company through difficult
period of transformational change. It was certain that the new state of the art IT system (SAP) was a precondition of the future
successful expansion.
…investing…
After overcoming the challenges of the implementation of the IT system we fount the company ready to scale up its business
in 2010 in Czech Republic and to roll it out to other countries. The company started Round C financing. Already at this stage we
found the expected valuation justified taking into account the ready to go potential. MCI invested 5mln EUR and acquired
11.5% stake in the Company. MCI structured the transaction. During the next two years MCI has been increasing its stake
gradually to above 18%.
…portfolio management…
MCI played an active role in value creation of the Company leveraging its ecommerce , regional and transactional experience.
We assisted the team in redefining the regional expansion strategy, supported acquisitions, supported creation of the top
second level management team. We shared our best practices from other portfolio companies – ABC Data and Invia and
encouraged the Company to build a marketing strategy based on top brands like Samsung. The Company managed to achieve
top operational excellence in a very short time and with our support managed to leverage this value through successful scale
up of the business in the CEE Region.
…exiting…
MCI initiated the exit process in the end of 2011. Basing on our experience we found the Company exit ready and we built our
confidence in successful exit after organizing a pre-pithing round with strategic investors which confirmed strong appetite for
ecommerce growth leaders in the CEE. As a next step we built interest of leading London based investment banks in the
process and ran competitive selection. The bidding winner of a competitive tender organized by an investment bank was
Naspers. At this stage MCI spent long hours negotiating the terms and the agreement alongside other exiting investors.
So this is how we made 175% IRR, 4.1x cash-on-cash return on Mall.cz

14. Mall.cz (NetRetail Holding) is the most successful e-commerce
company in the CEE operated in „Amazon” model

15. The exit valuation of the company was driven strongly by dynamics of revenue growth
since 2008. The company achieved a market leading position and implemented a
scalable business model. MCI participated in rounds C and D.
Revenue (LA)
Orders (RA)
MCI isfollowing the company
Although we were following the Company since
2004 we deployed capital only in 2010 in Round C
after the Company was operationally ready for
regional expansion and mitigated key operational
risks. From 2010 we were working with the
Company closely and were increasing our stake
gradually through participation in Round D and
buying shares of other investors in a secondary
lucrative transactions.
Round B
Value creation
Rounds C and D
Exit

16. Building portfolio value – Mall.cz case
175% IRR,
4.1 x CASH
Participation
18.2%
18.2%
16.3%
11.5%
Investment
+38.5mln EUR
Q2.2012
-4.99mln EUR
Q3.2010
Preparation of investment
FUNDRAISING
-0.7mln EUR
Q3.2011
Round C
Phase 1: 2006-2010
-3.5mln EUR
Q3.2011
Round D
From
individual investors
Phase 2: 2010-2011
Investment
Phase 3: 2010-2011
Supervision
MCI exit
Phase 4: 2011-2012
Exit process
MCI was following the company since 2004 and invested for the first time in round C in Q3’10.
MCI transferred e-commerce experience and co-managed the exit process. The company was
acquired by MIH Allegro B.V. (Naspers)

17. TVO’s vs. GLT’s
Time Vehicle Opportunities
Global Leaders of Tomorrow
e-commerce ->
Saas (software as a service) ->
marketplaces ->
BigData ->
fintech ->
Mobile Internet ->

18. We are welcome to support the best
enterpreneurs and projects
from Emerging Europe.
Thank you for your attention.
czechowicz@mci.eu