Mikro Kapital
ASSET MANAGEMENT
Mikro Fund
PRINCIPAL INDICATORS
ON MARCH 31st 2011
July
1 4th 2011
Mikro Kapital
Disclaimer
The only reason of the presentation is to purpose a financial investment methodology
instead of any financial product; neither any solicitation to buy or to sell some specific
product or service.
Although the information and the opinions expressed in the presentation are obtained by the
qualified sources, we assume no responsibility expressed or implied regards the accuracy and
completeness of this information.
Mikro Kapital does not provide tax or legal consulting. Therefore, this presentation does not
represent an advising. Mikro Kapital recommends to all interested in any product or service
represented in the presentation, to get a proper legal, tax or other specialist consulting in
standalone mode.
The General information contained in the presentation are not specific to your personal
investment and your financial situation or financial needs. Some products and services are
subject to the legal restrictions and cannot be offered worldwide unconditionally. All the
information, opinions and values indicated are subject to change without notice.
This presentation, approved and issued by Mikro Kapital, may not be copied or duplicated, in
whole or in part, without prior permission of Mikro Kapital.
2
Mikro Kapital
Content
3
PART 1
Group structure
5
PART 2
Investors information
14
PART 3
Recent Bond emissions
23
PART 4
Investment overview
27
PART 5
Risk Management: Business drivers
34
PART 6
Financial balance analysis
40
Mikro Kapital
Introduction
 This document intends to provide a Mikro Kapital detail analysis based on the
quarterly report of March 2011.
 In particular, the analysis takes into consideration the following areas:
 The company structure: organized, social and regional presence
 Evolution of financial returns for investors (NAV and Bond) and
fundraising
 Mikro Fund trend of investments analysis
 Mikro Fund main business drivers critical analysis
 Financial balance (assets and cash flows)
4
Mikro Kapital
PART 1
Group structure
5
Mikro Kapital
Key Messages
 Mikro Kapital SARL is a Luxembourg company that manages Mikro Fund, it is a
part of a structured group of financing and consulting
 The owner of the group through direct and indirect participation is Vincenzo
Trani, a founder and promoter of Mikro Kapital initiatives
 A small part of Mikro Kapital assets belong to Giorgio Parola (10%), Mikro
Leasing Belarus CEO, and to Denis Saklakov (5%), Mikro Kapital Russia CEO
 Vincenzo Trani directly and through the Russian SIM General Invest owns
100% of Mikro Fund NAV
 Mikro Fund presents a typical organizational structure required to a fund by
the Luxembourg legislation as for a subject to the legal monitoring
 The Fund operates in Russia and Byelorussia, has 10 offices and 42 direct
employees
6
Mikro Kapital
Group structure
CrossBorder JV
Local
Government
Italian holding
Italian
Company
51%
24%
Special Projects
25%
Byelorussia
100%
General Invest
Mikro Leasing
Luxembourg
Russia
Byelorussia
Italy
Russia
Mikro Fund
Russia
Luxembourg
Corporate Banking
Corporate Banking
Corporate Banking
Trading Department
Wealth Management
Asset Management
Commercial Banking
Commercial Banking
Corporate & Legal
Investment Banking
Crossborder Support
Trading Platform
Private Banking
7
Mikro Kapital
Shareholders map
(diagram)
TRANI
Vincenzo
President & CEO
Founder
TRANI
Arena Enrica
PAROLA
Giorgio
CEO
Mikro Leasing
SAKLAKOV
Denis
CEO Mikro Kapital
Russiya
0.01%
100%
10.0%
5.0%
99.9%
OOO BETA OIL
78.26%
Russia
94.11%
Mikro Fund
NAV
85.0%
5.89%
21.74%
General Invest LLC
Russia
Mikro Kapital Lux SARL
Mikro Leasing
Manages Mikro Fund Lux
Luxembourg
8
Russia
Byelorussia
Mikro Kapital
Shareholders map (sheet)
•Mr. G. Parola (CEO Mikro Leasing Belarus) owns the 10% of MK assets
•Mr. D. Saklakov (CEO Mikro Kapital Russia) owns the 5% of MK assets
•Mr. V. Trani owns the 100% of Mikro Fund NAV
Mikro Kapital
Mikro Fund Governance
Mikro Kapital Sarl
Luxembourg
- Asset Manager -
Namfex
Supervisory Board
Russia
- Consultant -
CALCOLO DEL NAV
SUPPORTO TECNICO
MIKRO FUND
Carnelutti Rome
Associated Law firm
- Consultant -
Fidomes
Luxembourg
- Consultant -
Yakovlev & Partners
Russia
- Legal Consultant -
JPA
Luxembourg
- AuditingBANKS
UBI Bank
Luxembourg
10
Trust National Bank
Russia
Banca Svizzera Italiana
Lugano
Mikro Kapital
Mikro Kapital – Organized structure
Impieghi
Mikro Kapital
Locations
Russia
Luxembourg
1 OFFICE
Saint
Petersburg
Mosow
Luxemburg
Milan
Byelorussia
Krasnodar
5 OFFICES
Italy
Rome
Naples
12
5 OFFICES
• Moscow (3)
• S.Pietroburgo
• Krasnodar
3 OFFICES
• Milan
• Rome
• Naples
Mikro Kapital
Offices & employees evolution
 Employess:
68% increase
in 6 months
+100%
+68%
sept10
dic10
march11
sept10
dic10
march11
 Offices:
twofold
increase in 6
months in
Russia and
Byelorussia
 The strategy of presence suppose the opening of the offices in strategical points: for example, in
areas of low presence of banks that provide the credits (outside of Moscow) or in the border
areas (Byelorussia) with high import-export flows
 Strong increase of the new offices opening (from 5 to 10 in 6 months) and of employees (from
25 to 42). Every branch has a commercial staff and autonomy for the target investment
decision to be submitted to Mikro Kapital Central Committee
13
Mikro Kapital
PART 2
Investors information
14
Mikro Kapital
Key Messages
 Investors participate through the NAV shares or through emission of shortterm BOND
 The founder V. Trani holds 100% of the NAV shares, while the bonds are
spread over 31 investors (March 2011)
 Since the date of launch (Sept. 2008) the NAV has filed a performance of
+74%, while the cumulative Bond performance of +28%
 Following the NAV growth and total BOND emission, the total Fund assets rose
over € 23 million on March (+16% in 6 months)
 Currently the ratio NAV/BOND is at 55% -45%, instead a maximum level
amounting to 30% -70%. There is still an ample margin for issuing BONDS
 Since the launch there is no NAV refund and even dividends distribution,
while, on demand of some investors, the redemption has been repaid
 The BOND Investors have grown to 31: institutional investors (with single
ticket also exceeding € 1 million) and Professional investors
15
Mikro Kapital
Financial details
Name
Registered address
Currency
Target
Last NAV
Min Investment
Fund Administrator
Reference Bank
Auditor
Legal Advisor
16
Mikro Fund
Luxembourg
Euro
Target € 75 – 100 million (€ 24 million on February 2011)
March 2011: 208.663 (+74% upon the date of emission)
€ 125.000
Mikro Kapital Sarl
UBI Bank (Luxembourg)
JPA Luxembourg
Yakovlev & Partners
Mikro Kapital
Performance evolution
Mikro Fund NAV
Upon the date of emission
Mikro Kapital Bond Index
+74% NAV
+28% BOND Index
MSCI World:
Subprime Crisis
all time low
Lehman’s downfall
17
Debt. of PIGS
Russian Wilefires
Ireland’s debt.
Greece's debt
Tsunami in Japan
Mikro Kapital
Evolution NAV and BOND (€)

Maximum leverage
ratio:

With an Equity level
of € 12,5 million the
Fund may issue
Bonds for additional
€ 20 million in
accordance with the
ratio D/E 30:70
 Mikro Fund equity level is of € 12,5 million on March, the increase is of 2,33 % on previous
quarter
 The participation of the of € 10,6 million. This value, while growing, represents less than 50% of
the total assets
 The diagram is presented the maximum amount of bonds that the Fund can emit (respecting
the maximum leverage ratio of 30/70): a potential additional approximately to € 20 million
18
Mikro Kapital
Evolution NAV and BOND
19
(%Assets)

The same diagram
of the previous
slide expressed in
%

Maximum leverage
ratio:

With an Equity level
of € 12,5 million the
Fund may issue
Bonds for additional €
20 million in
accordance with the
ratio D/E 30:70
Mikro Kapital
Refund financial flows
(NAV and BOND)
 The participation in the Fund's NAV construe the long-term implies logic aligned to the business
model (investments with 12-18 months expiration date). There is no NAV refund and even
dividends distribution since 2008
 Although not envisaged in the Statute, the Fund reimburses however the shares to bondholders
on request, where this does not compromise the financial balance of the Fund
20
Mikro Kapital
N. BOND-Investors growth
Tot: 31
Tot: 22
Tot: 18
 High growth of the participation of Bondholders at the bottom: doubling in 6 months
 Increasing of Professional investors
 Minimum size Bondholders (€ 125.000) and large investors over € 1 million presence.
21
Mikro Kapital
N. BOND-Investors per country
Tot: 31
Tot: 22
Tot: 18
 Strong representation of Italian investors (from 44% on Sept. 2010 to about two-thirds of the
total on March 2011)
 Stable participation of Swiss investors (about a quarter of the total on March 2011)
22
Mikro Kapital
PART 3
Recent Bond emissions
23
Mikro Kapital
Key Messages
 The peculiar Fund business model (the capital disposal for loans to small and
medium-sized enterprises) requires the consistent and recurring fundraising
in € 1 – 3 million tranches a month.
 In 2010 were emitted bonds for over € 8 million; and in the first half of 2011
have been emitted bonds complementarily for € 8 million.
 The bond fundraising has not been affected by the periods of tension of the
financial markets
 The bond fundraising growth was accompanied by the NAV growth
24
Mikro Kapital
7 emissions 2010: € 8,2 million
Jan. 2010
Apr 2010
May 2010
May 2010
€ 3.000.000
€ 300.000
€ 1.300.000
€ 1.000.000
Expiry date: April 2013
(24 months)
Expiry date: Nov.2011
(18 months)
Expiry date: Nov.2011
(18 months)
Fixed rate of interest
10.0%
Fixed rate of interest
10.0%
Min. denomination:
125.000 €
Quarter Coupon
Quarter Coupon
Min. denomination:
125.000 €
Min. denomination:
125.000 €
June 2010
Sept. 2010
Nov.2010
€1.000.000
€1.125.000
€ 500.000
Expiry date: Jan 2012
(18 months)
Expiry date: March
2012 (18 months)
Expiry date: May 2012
(18 months)
Fixed rate of interest
10.0%
Fixed rate of interest
10.0%
Fixed rate of interest
8.50%
Quarter Coupon
Half-year Coupon
Half-year Coupon
Min. denomination:
125.000 €
Min. denomination:
125.000 €
Min. denomination:
125.000 €
Expiry date: Sept.2011
(24 months)
€bor tax + 11.0%
One month Coupon
Min. denomination:
125.000 €
25
€bor tax + 11.0%
One month Coupon
Mikro Kapital
7 emissions 2011 (actual and pipeline): € 9 million
Jan.2011
March 2011
Apr.2011
Apr.2011
€ 1.000.000
€ 1.000.000
€ 1.125.000
€ 500.000
Expiry date: July 2012
(18 months)
Expiry date: Sept.2012
(18 months)
Expiry date: Oct.2012
(18 months)
Expiry date: Oct.2012
(18 months)
Fixed rate of interest
10.0%
Fixed rate of interest
Fixed rate of interest
8.0%
Quarter Coupon
Quarter Coupon
Fixed rate of interest
9.0%
Quarter Coupon
Min. denomination:
125.000 €
1 Investor
Min. denomination:
125.000 €
26
9.0%
Min. denomination:
125.000 €
Half-year Coupon
Apr.2011
May 2011
July 2011
Sept.2011
[PIPELINE]
€ 1.700.000
€ 1.500.000
€ 1.000.000
€ 1.000.000
Expiry date: Oct.2012
(18 months)
Expiry date: Nov. 2012
(18 months)
Expiry date: Jan.2013
(18 months)
Expiry date: Oct.012
(18 months)
Fixed rate of interest
9.0%
Half-year Coupon
1 Investor
Fixed rate of interest
9.0%
Quarter Coupon
Fixed rate of interest
9.0%
Quarter Coupon
Fixed rate of interest
9.0%
Half-year Coupon
Min. denomination:
125.000 €
Min. denomination:
125.000 €
Min. denomination:
125.000 €
Mikro Kapital
PART 4
Investments overview
27
Mikro Kapital
Key Messages
 Until 2009 Mikro Kapital has operated directly from Luxembourg, providing funding
to small and medium-sized enterprises in Russia
 From 2009 were open the offices in Russia (Mikro Kapital Russia) and Byelorussia
(Mikro Leasing); in addition, the Fund has also opened a "wholesale", channel for
institutional operators which in turn allocate it to micro-enterprises in Russia
 The opening of the new offices and indirect channel has facilitated the growth of the
number of investments (303 investments on March 2011) permitted the
dimensional, sectoral, geographical and expiry diversification.
 There are a diversification of investments across the sectors. The sectors are largely
related to the services: in fact, there are no sectors that require investment in
durable goods or long-term investments.
 The investments in small and medium enterprises represent approximately 92% of
total assets; the activity is concentrated in Russia (84% of the investment)
 The average investment varies in base of the channel: € 2,600 is through wholesale
channel and up to € 150,000 for direct channel. The average of the total
investments is approximately € 70,000
28
Mikro Kapital
Sector liabilities analysis
 [to complete]
29
Mikro Kapital
Liabilities analysis
Tot:23.0 m€
Tot: 20.7 m€
Tot: 19.8 m€
 The 92% is invested
in the core business
(investments in
Russia and
Byelorussia)
 The remaining 8%
is invested in cash
or other short-term
activities
 The Russian
liabilities are about
84%, while the
Byelorussian ones
(activities match in
2009) is less than
8% in constant
increasing
30
30
Mikro Kapital
The number of clients growth
Tot: 303 investments
(Russia, Byelorussia)
MICRO
interprise
Tot: 149 investments
(Russia, Byelorussia)
MID
interprise
SMALL
interprise
31
31
Investments
through
wholesale
structures
Mikro Kapital
and
Mikro
Leasing
direct
investments
 The number of
investments is
growth twofold in
one quarter
 The growth of new
investment both for
direct channel
(Mikro Kapital &
Mikro Leasing) and
through institutional
operators in
"wholesale“ mode
 Thanks to
"wholesale" it is
possible to reach
a significant
number of microenterprises
Mikro Kapital
Assets & Liabilities
(March 31st 2011)
Total Assets
23.022.121€
Total Liabilities
23.022.121€
Investments in Russia
Equity
12.472.121 €
(54%)
Total Asset
23.022.121 €
Total: 19.243.483 million
Clients: 189
Average: 101.800€
Russia (19,2 million)
303 Final
Clients
BONDS
10.550.000 €
(46%)
Medium size
per client:
69.719 €
Belarus (1,9ml.)
Other Asset (1,8million)
Details:
• 122 direct clients with medium size of
€156.317
• 67 indirect clients with medium size of
€2.579
Investments in Belarus
Total: 1.881.279m
Clients: 114
Average: 16.502€
Cash (0,01 million)
32
32
Mikro Kapital
Investments map
(March 31st 2011)
Luxembourg (23.022.121 € - 100.0%)
Impieghi
Cash & Equivalents
Investment Flows (21.124.762 € - 91.8%) for 303 final clients.
1.897.359 €
(8.2%)
19.243.483 €
(83.6%)
189 clients
19.070.663 €
(82.8%)
122 clients
Final
investiment
1.881.279 €
(8.2%)
114 clients
Russia
Institutional
organizations
172.820 €
(0.75%)
Final
67 clients investment
1.881.279 €
(8.2%)
114 clients
Final
investiment
Mikro Leasing
Byelorussia
Institutional
organizations
0€
(0.0%)
Final
investment
Mikro Kapital
PART 5
Risk Management: Business drivers
34
Mikro Kapital
Key Messages
 There are a diversification of investments across the sectors. The sectors are
largely related to the services: in fact, there are no sectors that require
investment in durable goods or long-term investments.
 All investments are made against pledge.
 The Fund's track record shows that there are no legal proceedings
 No investment has never been given rise to default
 The data to measure the Portfolio At Risk, Par 30 and Par 90, have both low
values, between the 1,15% and 1,56%
 The Fund minimizes the Exchange rate exposure: over 90% of total assets is
used in Euro.
35
Mikro Kapital
Investments against pledge only
 Since the beginning
of its activity in 2008
Mikro Fund has
invested against a
pledge only
 The pledge may be
represented by Real
Estate, personal
property of the
contractor and his
family (or the first
line management),
or vehicles
 The pledge multiple
generally is between
1.0x and 3.0x.
The pledge assets currently amount € 28
million, about 130% of the total Fund assets
 Currently the
pledges represent
about 130% of the
Fund assets
36
Mikro Kapital
Extrajudical settlements
Number of legal proceedings
Number
of clients
of default
Evoluzione
del N.indistate
clienti
falliti
 The Fund has never had open any legal proceeding: in case some company are not able to pay
an installment, it is trying to agree in some other way with Mikro Fund to not lose the pledge
 The pledge has the function of selection the solid companies for financing
37
Mikro Kapital
The PAR (Portfolio At Risk) is negligible
Portfolio At Risk evolution
 The PAR (Portfolio At Risk) has an extremely low values, both for PAR30 and for PAR90.
 The PAR on March 2011 is equal to 300.000€, representing about 1,5% of the portfolio.
 In Russia the PAR30 and PAR90 coincide: the are no delays over 30 days
38
Mikro Kapital
Exchange rate exposure: 90% of portfolio is
allocated to euros
Exchange rate esposure - € countervalue
•
Exchange rate esposure – contracts number
90% of portfolio is
allocated to EUR
 The Fund investments in Euros are for over 90% of the portfolio. The remaining 10% are in
Rubles, while there are no employs in Byelorussian Rubles.
 The investments in Rubles represent less than 10% of amount but approximately 45% of the
number of contracts: investments in Ruble are extremely fractionated (the Ruble-denominated
contract countervalue is € 17,000, meanwhile for Euro-denominated contracts is € 128,000)
39
Mikro Kapital
PART 6
Financial balance analysis
40
Mikro Kapital
Key Messages
 The balance of the financial structure is measured as financial flows, assets,
receivables & payables.
 In regard to the financial flows, the trade-off occurs among the 18 months
bond expiry dates and the expected cash flows. In particular, in March 2011
the inflows amount is about € 3.5m, while the amount due for payment is €
3.2m. The expiry date of April 2011 was compensated.
 In regard to the assets, the leverage equity/ medium and long term loans is
1,5. The short-term loans represent more then 25% of the bonds.
 In regard to the receivables & payables, in 2001 and 2012 whereas the
gradual repayment of receivables, the payables constitute 5% of the total
fund assets.
 The bond expiry dates issued in 2010-2011 is DOUBLE in comparison to the
duration.
41
Mikro Kapital
Credits amount due in next 3 months
 The Fund credits in Russia
and Byelorussia are shortterm (duration is 9
months only)
 The short duration
combined to the high
number of customers
ensure significant cash
flows to cover obligations.
As % total asset
 The situation on March
2011 shows that in the
credit amount due next
quarter (April – June
2011) is about € 3.5
million, which corresponds
to 17% of the total fund
assets.
4.2%
42
5.4%
16.8%
 The clients have the rollover opportunity
Mikro Kapital
BOND duration

The Bond duration is 9
months only.

Thanks to:
(i)
French refund method:
capital & interests from
the first month.
(ii) Funding for short-term
financial requirement.
(iii) Frequently this type of
funding are reimbursed
before the expiration
date.

43
Funding expiration date
are 2x on bond issued
expiration date.
Mikro Kapital
Fixed assets cover margin
 xxx
 On March the NAV
represents 55% of
the sources and
cover the long
term investments
(33% of the
sources)
 There is a
compensation
between the short
term investments
(€ 12.6 million)
and the bonds
issued (€ 10
million)
 Equity / LT
Investments:
1.55x
 ST Investments /
Bond:
1.27x
(*) Long Term: “Equity / Long Term Investment”. Short Term: “Short Term Investment / Total BOND”
44
Mikro Kapital
Bond expiry date & refund
Today (June 30 2011)
Total Fund Asset (=100%)
Refund BOND (% on Total Fund Asset)
 Thanks to the monthly tactics of the monthly Bond inflows, the expiry dates are not concentrated in single events
but distributed in the time. The incidence normally is by 5% on the Total Fund Assets.
 On April 2011 was refunded a €3.2 million bond emitted on October 2009.
45
Mikro Kapital
Contacts
Mikro Kapital s.a.r.l.
c/o Fidomes Ltd
75, Parc D’Activites
Capellen
Grand Duche’ de Luxembourg
Europe: +39 02 4070 0850
info@mikrokapital.com
www.mikrokapital.com
46
Mikro Kapital