PEARL HOLDING LIMITED

MONTHLY REPORT as per 30 June 2011

Pearl Holding Limited is a Guernsey-registered company. Pearl Holding’s convertible bond enables institutional and private investors to participate in a professionally managed, broadly diversified portfolio of in private equity partnerships, listed private equity vehicles and direct investments. Since inception in September 2000, EUR 660 million has been raised in three closings. The redemption amount (108% of the nominal amount) of the bond as well as the annual coupon of 2% are insured until maturity under an arrangement with European International Reinsurance Company, a wholly-owned subsidiary of Swiss Re. The convertible bond, which is eligible for the investment of prime stock reserves in Germany, has been given an A+ rating by Standard & Poor’s.

Key facts Monthly commentary Launch date 29.09.2000 Pearl’s portfolio companies continued to perform well during the Maturity 30.09.2014 month of June as many were able to improve their operating Currency EUR results and increase their earnings which resulted in a positive impact on the net asset value (NAV) of +0.9%. This positive Coupon 2% impact, however, was offset by the appreciation of the euro Redemption 108% against the US dollar. During the month, the EUR/USD exchange Conversion period 01.10.2012 - 31.08.2014 rate showed a volatile development mainly because of the ongoing Stock exchange Luxembourg challenges in the Eurozone and the United States. All this is German security number 558.527 reflected in the slight decrease of Pearl’s NAV by -0.1% to Swiss security number 1.140.571 104.08% per convertible bond as of end of June. ISIN code XS0117871698 During the reporting period, Pearl received EUR 11.3 million in Reuters DGZ07 distributions from exited portfolio companies and invested EUR 5.3 million in new opportunities. Among others, Pearl received a Key figures capital call from Eurofund V for the acquisition of a majority 30.06.2011 31.05.2011 YTD stake in US-based automotive company Hilite International for Net asset value (NAV) 104.08% 104.18% 4.06% approximately USD 350 million. Hilite operates in a high growth segment of the global automotive market – the manufacturing of Interest since inception 21.50% 21.33% hydraulic actuators and timing systems which improve fuel Theoretical NAV 125.58% 125.51% 4.20% consumption and reduce emissions. In 2010, Hilite generated Mid-market price 96.50% 96.00% -0.52% revenues of USD 400 million. 3i expects that Hilite’s future growth Premium over NAV -7.28% -7.85% will mainly be driven by global trends in fuel efficiency and Investment level 95.85% 96.27% emissions reduction. The company is well positioned to benefit Gross investment level 91.20% 91.61% from these market developments due to its technological expertise and its highly differentiated product offering. Overcommitment 19.73% 20.88% Overcommitment incl. credit line 9.54% 10.70% Furthermore, Pearl received a distribution from the sale of Wall Street Systems by Private Equity IX to ION Trading for around USD 500 million. Wall Street Systems is a NAV development since inception provider of treasury, trading and settlement solutions with an Net performance EBITDA of about USD 40 million in 2010. Warburg Pincus acquired 180130 30% the company in 2006 and in the same year merged it with Trema Pearl 160 Holding, a provider of treasury and cash management software MSCI World 20% solutions. Since then, Wall Street Systems has expanded globally 140120 and made several strategic acquisitions. According to sources the 10% 120 exit is expected to generate a return of around 3x for Warburg Pincus. 100110 0% Mid-market price in % 80 -10% 60 100 -20% 40

20 -30% 90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

5 year 2011NAV in % in 80% 2007 2008 2009 2010 5 years annualized YTD return Pearl* 18% -17% -14% 14% 4% 8.1% 1.6% 70 MSCI06-08 World** 12-08 -5% 06-09 -36% 22% 12-09 18% 06-10 -5% 12-10 -9.6% 06-11 -2.0%

* Based on monthly valuations. ** Source: Bloomberg NDDLWI Index in EUR.

PE investments by region, financing stage and industry sectors*

Asia & rest Special of world Energy Situations Telecom 6% 2% Utilities 11% 3% 1% Consumer Consumer Staples Discr. 5% 23% Venture Materials Capital 7% North 20% America IT Europe 49% 13% 45% Health Care 17% 69% Financials 10% Industrials 19%

The accompanying notes form an integral part of this monthly report. * based on Global Industry Classification Standard (GICS). PEARL HOLDING LIMITED

GLOSSARY

Buyout Acquisition of a controlling stake in a company, typically with financial or managerial reorganization needs. Small/mid/large/mega large size buyout refers to the enterprise value of the acquired company. Whereas the bandwidths are set at (EUR or USD) <250m/250m-EUR 1bn/1bn-5bn/>5bn for small/mid/large/mega large size buyout respectively.

Interest since inception Paid and accrued interest since inception Investment level The value of private equity investments divided by NAV Net asset value (NAV) The net asset value in quarterly reports is calculated as described in the Offering Circular dated 26 September 2000: "Gross consolidated assets less consolidated liabilities, save that the principal amount of the bonds shall be treated as equity". Investors should note that certain estimates are used in determining the NAV for monthly reports not produced at quarter end.

Mid-market price The arithmetic mean of bid and offer closing prices on the last trading day of the month as reported to Pearl Overcommitment Undrawn commitments less net current assets divided by NAV Overcommitment (incl. credit line) Undrawn commitments less net current assets and the credit line divided by NAV Private equity Investments in companies, which typically are not publicly traded and in which the investor may significantly influence the management, and other investments of similar character.

Special situations Any form of investment that falls within the definition of private equity but cannot be attributed to or buyout as described above. Special situations includes mezzanine, turnaround, distressed and other investments. Theoretical NAV Theoretical NAV (if no interest paid and accrued to date) Value of PE investments Private equity () investments and directly held investments valued at fair value in accordance with the International Financial Reporting Standards (IFRS) Venture capital Financing for companies typically in their build-up phase. Seed Stage describes the period where product feasibility is confirmed; Early Stage involves the identification of the position in the market, the establishment of production lines and the development of marketing channels; Later Stage portrays the subsequent rapid expansion phase of a young company.

This Newsletter is produced based on information available on the last working day of the month.

CONTACT DETAILS

Pearl Holding Limited Tudor House P.O. Box 477 St. Peter Port Guernsey, GY1 6BD Channel Islands www.pearl-privateequity.net

Investor Relations Tel.: +44 (0) 1481 711 690 Fax: +44 (0) 1481 730 947 E-Mail: [email protected]

This document is not intended to be an investment advertisement or sales instrument; it constitutes neither an offer nor an attempt to solicit offers for the product described herein. This report was prepared using financial information contained in the company's books and records as of the reporting date. This information is believed to be accurate but has not been audited by any third party. This report describes past performance, which may not be indicative of future results. The company does not accept any liability for actions taken on the basis of the information provided.