Swedish-American Life Science Summit 2008

1. Swedish-American Life Science Summit 2008 Biotech under Dire Conditions Aug 20, 2008 Thomas von Koch

2. EQT today: Northern European private equity fund with local knowledge Stockholm 12 Partners 18 Other Professionals Oslo 1 Partner 2 Other Professionals New York 1 Partners 3 Other Professionals • Entrepreneurs with an industrial orientation and a strong will to drive change • Part of the Wallenberg network • Strong record of delivering superior returns to investors over time • Founded in 1994, over €12Bn in capital raised • 3 business lines • Buy-out in Europe and Greater China • Mezzanine • Special Opportunities • 178 people • 13 offices Helsinki 1 Partner 6 Other Professionals Copenhagen 3 Partners 5 Other Professionals Frankfurt 2 Partners 5 Other Professionals Zurich 1 Partner Munich 7 Partners 14 Other Professionals Shanghai 3 Professionals Hong Kong 2 Partners 7 Other Professionals

3. 5% Approx. 30 divestments (1997 – 2008) Analysis of value creation in all EQT Equity’s exits • % of equity created Value Driver Sales growth 32% Margin expansion Strategic re-positioning 17% Debt pay down Label

4. Proof of industrial model Yearly growth during ownership period in all investments held more than 1 year EBITDA 20% Number of employees 12% Sales 13%

5. Opportunities exist across segments, so far EQT has made acquisitions in Medtech mainly Pharmaceuticals Medtech* Service providers Large cap pharma Niche pharma Biotech Diagnostic & Monitoring PI&D, Consumables & Supplies Primary Acute care Post- sub-acute care B2B healthcare services (& intermediaries) Healthcare IT CXOs Product distribution Physician Practice Mgmt Disease Management Other

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7. Private Equity fundraising still strong – albeit slowing down USD (Billion) BO = 90% BO = 64% Source: US Data: Private Equity Analyst, Europe Data: EVCA Does not include Real Estate or Fund of Funds

8. Fundraising – Dire Future • Asset Managers over-allocated to PE • PE Managers performance rapidly deteriorating • Risk/ Reward for asset class in current market not appealing PE Fund Managers will hold on to their money

9. Current financing situation- deal volume and deal count Volume (in €bn) Deal count Q4 Q3 Q2 Q1 Deal count 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Thomson Financial, JP Morgan

10. Debt Market Closed • 300 Bn USD of LBO debt “stuck” in banks’ balance sheets • All LBO debt trading below nominal value • London/ NY bank syndication markets closed – uncertain when/ if they will open • Very hard to make transactions in excess of 1 Bn Euro Very few LBO transactions will be made

11. Deal Activity Collapsing • Not a functioning debt market • No exit market available • IPO closed • PE semi-closed • Industrial buyers window closing • Business cycle in decline

12. During last 18 months 24 major PE deals have been made in European healthcare COMPANY BUYER YEAR REGION DEAL SIZE (€M) MEDTECH* HEALTHCARE PROVIDERS PHARMA, BIOTECH & OTHER HEALTHCARE Note: * Medtech includes medical devices and supplies; Includes all LBO transactions involving European targets valued >$75M by European- and foreign-based firms Source: Bain European Private Equity database

13. Risk Aversion – where will the money go? • Private market almost closed • Buy out liquidity low/ Venture Capital worse • Trend of PE money becoming public activist money • Trend of PE money becoming debt oriented money. Todayequity returns for taking junior debt risk

14. Concluding remarks • Risk aversion at a high point • Nuclear melt down in financial markets must be resolved • Negative business cycle sentiment must turn • Only positive Healthcare is a defensive sector It will take time until Private Equity is back to normal