waves of change in emea understanding the consumer theme

I For Dublin 2013 Investment Conference Attendees Only and

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Agenda

Waves of Change in EMEA

Understanding the Consumer Theme

EMEA Consumer Opportunities

Accessing the Opportunity



WAVES OF CHANGE IN EMEA Section One



Emerging Equity Markets: Long-Term Strong Performance Against Developed

Markets

Source: Bloomberg, 24 January 2003 - 28 May 2013 weekly data in USD

85.00

135.00

185.00

235.00

285.00

335.00

385.00

435.00

485.00

535.00

Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

MSCI Emerging Markets ($) MSCI Emerging Markets ($) S&P 500 ($) MSCI Europe ($) Topix($)



Key Themes for Emerging Europe and Mediterranean Equity

Equity Risk Premium

Growth in the Middle Class

Region as Growth Opportunity

African Consumer Growth

New Choices in the Middle East



357911131517192123

10

12

14

16

18

20

22

24

26

28

Nov-0

0

Aug

-01

May-0

2

Feb-0

3

Nov-0

3

Aug

-04

May-0

5

Feb-0

6

Nov-0

6

Aug

-07

May-0

8

Feb-0

9

Nov-0

9

Aug

-10

May-1

1

Feb-1

2

Cost of Equity vs. Earnings Multiple

Cost of Equity (lhs) PE (rhs)

Source: Financial Times, 4 October, 2012.

-20

-10

0

10

20

30

40

50

60

70

80

90

2012 2013 2014 2015

Current Account:

CBR Base Case Forecast

Sources: Cost of Equity - Credit Suisse

PE Ratio - MSCI

Theme: Russian Equity Risk Premiums



Theme: The Russian Middle Class Growth Earnings Driver

At 14.3% of the total population, Russia’s middle class is now

one of the fastest growing markets in Europe:

1.4

20.3

40.5

66.7

0

8.5

17.8

29.8

0

10

20

30

40

50

60

70

80

2005 2011 2015 2020

Affluent People in Russia, mn

Monthly Income > RR 35k Monthly Income >RR 60k

Source: BoAML, June 2012

Sources:

Bank of America Merrill Lynch, June 2012

http://www.sollers-uto.com/en/pressroom/news/index.php?&from35=3&id35=567

http://www.danone.com/en/what-s-new/unimilk.html Source: Bank of America Merrill Lynch, June 2012

The Rapidly Emerging Russian Middle Class is a Powerful Demand Driver

“In Russia, [We] returned to the double-digit

growth last year that drove our twentyfold

increase in regional sales over the last

decade… Per capita consumption of fresh

dairy products is 12 kg per year compared

with 20 in Europe”

“Russia is set to become Europe's

largest market for new vehicles by mid-

decade”

“Internet penetration will rise from 50% to

85%- 90%”

Banking

Automobiles

Food



Theme: Turkey’s Regional Opportunity

2000

Eurozone Other Europe Americas

MENA Asia Other

2011

Source: HSBC, September, 2012

Exports as a Share of Total:

• The Middle East has

emerged as an important

trading partner for Turkey

• Rising demand in Middle

Eastern markets is lifting

Turkish order books

• No longer fair to say that

Turkey is exclusively a play

on European demand



• As fiscal performance strengthens, the debt ratios have improved over the past years

• Current account deficit is showing signs of turnaround

* Excluding energy imports. Source: Ministry of Finance, J.P. Morgan as at 31 March 2012

Budget Balance – 12 Month Trailing

% G

DP

1

0

-1

-2

-3

-4

-5

-6

-7 2009 2010 2011 2012 2008

Current Account Balance* – 12 Month Trailing

% G

DP

4

2

0

-2

-4

2009 2010 2011 2012 2008

Theme: The Shifting Composition of Turkish Exports



Theme: The (New) Arab World

• Currently non-index countries – some are likely to move into the EM series over the next few years

• We are looking for opportunities in certain countries, such as Egypt and Qatar, and also from companies in countries like Turkey that are expanding in these markets

• Egypt: large population under new management, rising wealth and increased consumer-growth potential

• Middle East (GCC): strong fundamentals (except Dubai) and economic growth (especially Qatar), a large infrastructure pipeline and steadily improving investment climate, which should yield growing investment opportunities

Source: IMF WEO, April 2011

0

5

10

15

20

25

30

35

40

45

0-19 20-34 35-49 50-64 65-74 75+

Egyptian Demographic Distribution

2010 2050

Source: HSBC, October 2012

Egypt: Population Growth and Rising Wealth

500

1000

1500

2000

2500

3000

3500

4000

4500

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016 40

45

50

55

60

65

70

75

80

85

90

Egypt GDP Per Capita (US$) (lhs) Egypt Population (millions) (rhs)



One billion new consumers on the global doorstep … and growing

Source: The Economist, October 2012

• Africa has begun to attract strong FDI flows as corporates target

natural resources and consumer opportunities on the Continent

• Equity opportunities remain substantially first stage, with daily

average trading volumes improving gradually from a very low base

• African per capita GDP approaches the $3,000 level and is expected

to continue on this growth trajectory in the near term

• Sub Saharan African population growth exceeds 3%, creating

conditions required for a demographic dividend

Global Population Growth

Theme: The African Consumer



INVESTING IN CONSUMERS Section Two



Global Consumption Share

Emerging Markets Will Dominate Future Consumption

34%

22%10%

12%

22%

2005 Global Consumption

US

Emerging markets

Japan

Other Industrial

Europe

26%

37%6%

11%

20%

2015 Forecast Consumption

US

Emerging markets

Japan

Other Industrial

Europe

Source: Credit Suisse, April 2012

26%

37%6%

11%

20%

2015 Forecast Consumption

US

Emerging markets

Japan

Other Industrial

Europe



Consumer Themes

Urbanisation Increased Discretionary Spend Brands

Internet

Upgrading Wellbeing

Luxury

Travel

Services



What’s Out There?

6 Ways to Play the Consumer Theme:

•Re-rating and good FCF businesses, local brands. EM discretionary more vulnerable to loss of market share/elimination, staples more prone to takeover EM Mini Nestles

• Operating in countries with protectionist leanings (Brazil, India)

• Often in sectors where MNCs are less present

• Brands with a cultural niche Local Brands

•Otherwise rewarded for growth in risk-on, but punished in risk-off environments (Beware of dumb deals) Funded Predators

•Can offer significant EM exposure with less risk Developed Players

•Can offer more local leverage with less risk Western Subsidiaries/JVs

•EM companies with Western stakes EM Champions



EMEA Retail: Scale Differences Between European and EMEA Retail

Moscow

“Europeisky”

180,000 SqM

Opened 2009

Dubai

The Dubai Mall

550,000 SqM

Opened 2008

Lagos

Ikeja City Mall

27,000 SqM

Opened 2011

Munich

Riem Arcaden

46,500 SqM

Opened 2004

Source: Pioneer Investments, May 2013



EMEA CONSUMER OPPORTUNITIES Section Three



Turkish Biscuits: Investment Case

For Illustrative Purposes Only.



Macro and Industry-Macro Slowing in 2012, to Rebound in 2013.

Long-Term Food Consumption Picture Supported by Disposable Income Increases

Source: Standard Unlu, April 2012

Source: CAOBISCO, Standard Unlu analysis, *Company data

% G

row

th

Kg p

er

Capita

Chocolate consumption breakdown by country in 2009 (kg per capita)

10

.68

10

.35

9.6

1

9.1

9

6.9

2

6.5

5

6.0

0

5.4

4

5.2

7

4.7

6

3.6

1

3.3

9

2.8

5

2.6

5

2.5

9

2.4

2

2.3

4

2.2

7

2.2

4

2.1

4

1.9

0

1.1

1

0.00

2.00

4.00

6.00

8.00

10.00

12.00

UK

Sw

itze

rla

nd

No

rwa

y

Ge

rma

ny

De

nm

ark

Fin

lan

d

Be

lgiu

m

Esto

nia

Lith

uania

To

tal E

U

Fra

nce

Hu

ngary

Ita

ly

Sp

ain

Gre

ece

Au

str

ia

Ire

land

Bu

lgaria

Ro

ma

nia

Po

rtu

gal

Tu

rke

y*

Po

land

Source: Standard Unlu, April 2012



Russian Retail: Investment Case

• Attractive market, structurally. High growth rates sustainable for longer. Market share

opportunity very visible over a 5-year period.

• Some convenience plays offer the highest top-line growth in global universe. Returns

are good and will increase going forward.

• Period of funding tightness over. OPFCF to accelerate.

• Recent scale gains have driven GPM to a new level. Declining capex as % of sales will

lead to operating leverage as SGA falls back and scale benefits continue.

• Sector enjoys relatively little government intervention and has scarcity value.

• Strong management execution capability.



Industry

• Modern retail chain penetration is very low in Russia (34%).

• Russian food retail market grew at a CAGR of 16% 2005-2011. Growth rates falling to

high single digits, but still attractive.

• Fragmented structure. Top 10 players own only 17% of the market.

• Industry not considered “strategic” by government, regulation relatively light.



Attractive Market: Low Market Share of Top 10 Russian Retailers,

Decent Retail Growth

Source: ING, June 2012

Retail chain penetration is very low in Russia (34%)

Top 10 players own only 17% of the market Russian food retail market

88% 83% 80%

57%

46%

34%

0%

10%

20%

30%

40%

50%

60% 70%

80%

90%

100%

Russia Turkey Poland Germany UK Finland

80%

67% 63% 62%

49% 47%

17%

55%

0% 10%

20% 30%

40% 50%

60% 70%

80% 90%

0 50

100 150 200 250 300 350 400 450 500

2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F

-20%

-10%

0%

10%

20%

30%

40%

Russian food retail market, $bn (l.s.) % chg y-o-y (r.s.)

Open Market 12%

Other Modern Retail 17%

Other Stationary Retail 53%

Top 8 18%

Open Market Other Modern Retail Other Stationary Retail Top 8



ACCESSING THE OPPORTUNITY Section Four



Pioneer Funds – Emerging Europe and Mediterranean Equity

Portfolio Overview

• Overview

– We have a GARP (growth at reasonable price) style. Our investment process is bottom-up driven with

top-down risk controls and thematic considerations. Our bias is toward mid- and small-cap companies, as

this is where we see the biggest growth opportunities and entrepreneurial spirit. Typically we have a

three-year horizon when making investments.

• Portfolio Objectives

– Exposure to companies located in Central and Eastern Europe as well as selected countries of the

Mediterranean basin (including Israel and Egypt)

– Benchmark: MSCI Emerging Europe and Middle East 10/40 Index

• Positions (internal guidelines)

– Stocks absolute: max. 8%, min. 0.5%*

– Stocks relative: max. 5%*

– Country/Sector: no limits*

– No. of holdings: between 60 and 80*

• Cash: Max 20%* *Note: these are internal guidelines and not prospectus limits and may be subject to change over time.




Country Allocation: Overweight Russia

Country Portfolio Benchmark Relative

Austria 3.21% 0.00% 3.21%

Turkey 24.50% 23.02% 1.48%

Middle East (Egypt, Jordan,

Lebanon) 1.17% 0.00% 1.17%

Russia 56.50% 55.93% 0.57%

Hungary 0.99% 2.30% -1.31%

Czech Republic 1.11% 2.56% -1.45%

Poland 10.11% 16.18% -6.07%

Source: Pioneer Investments as at 30 April 2013. Benchmark: MSCI Emerging Markets Europe and Middle East 10/40




Sector Allocation: Overweight Consumers

Sector Portfolio Benchmark Relative

Consumer Discretionary 4.93% 1.29% 3.64%

Consumer Staples 10.42% 7.19% 3.23%

Energy 36.69% 33.62% 3.07%

Industrials 4.03% 2.45% 1.58%

Health Care 1.19% 0.00% 1.19%

Information Technology 0.00% 0.26% -0.26%

Utilities 3.27% 4.25% -0.99%

Financials 30.90% 33.37% -2.47%

Telecoms 5.05% 8.66% -3.60%

Materials 3.41% 8.91% -5.50%

Source: Pioneer Investments as at 30 April 2013. Benchmark: MSCI Emerging Markets Europe and Middle East 10/40



5 Years Ann. -2.48 0.23 -2.71

1 Year 3.96 6.39 -2.43

3 Years Ann. -0.87 1.67 -2.54

YTD -2.06 -2.75 0.69

1 Month -2.90 -2.64 -0.26

3 Months -3.42 -3.43 0.01

Fund % Benchmark % Relative %

Source: Pioneer Investments as at 30 April 2013. Performance data provided refers to Class A units only, and is based upon NAV net of fees. For details of other unit Classes

available, please refer to the prospectus. Please see additional MSCI disclaimer in the Additional Notes.


Trailing Returns Class A Non-Distributing Euro



R-Squared 0.96

Tracking Error 4.42 %

Information Ratio < 0

Beta 0.91

Standard Deviation 21.56 %

Sharpe Ratio 0.09

Alpha -0.22 %

Source: Pioneer Investments as at 30 April 2013.


Risk Analysis (3 Years)




Key Facts

First Nav Date (A Class) 18 December 2000

Benchmark MSCI Emerging Markets Europe &

Middle East 10/40

Morningstar Rating

Fund Inception 30 November 1998

Total AUM (Mil) €468.7

Total Number of Holdings 70

Assets in Top 10 Holdings 46.6 %

Source: Pioneer Investments as at 30 April 2013. Morningstar Ratings: Copyright © 2013 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) may not be copied or distributed; and (2) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.



Additional Notes

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any

financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any

kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis,

forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each

of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all

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other damages (including lost profits) even if notified of the possibility of such damages.



Important Information

Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 30 April 2013.

Pioneer Funds – Emerging Europe and Mediterranean Equity is a sub-fund (the “Sub-Fund”) of Pioneer Funds (the “Fund”), a fonds commun de placement with several separate

sub-funds established under the laws of the Grand Duchy of Luxembourg.

Past performance does not guarantee and is not indicative of future results. Unless otherwise stated, all views expressed are those of Pioneer Investments. These views are subject

to change at any time based on market and other conditions and there can be no assurances that countries, markets or sectors will perform as expected. Investments involve certain

risks, including political and currency risks. Investment return and principal value may go down as well as up and could result in the loss of all capital invested. More recent returns

may be different than those shown. Please contact your local sales representative for more current performance results.

In the event this Sub-Fund holds derivatives, portfolio breakdown and allocation slides reflect such derivative exposure only where specifically noted.

This material is not a prospectus and does not constitute an offer to buy or a solicitation to sell any units of the Fund or any services, by or to anyone in any jurisdiction in which such

offer or solicitation would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or

solicitation. For additional information on the Fund, a free prospectus should be requested from Pioneer Global Investments Limited (“PGIL”), 1 George’s Quay Plaza, George’s

Quay, Dublin 2, Ireland. Call +353 1 480 2000 Fax +353 1 449 5000.

This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its

territories or possessions subject to its jurisdiction to or for the benefit of any United States person (being residents and citizens of the United States or partnerships or corporations

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This document is not intended for and no reliance can be placed on this document by retail clients, to whom the document should not be provided.

The content of this document is approved by PGIL. In the UK, it is directed at professional clients and not at retail clients and it is approved for distribution by Pioneer Global

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For Dublin 2013 Investment Conference Attendees Only and Not to be Distributed to the Public

Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies.

Date of First Use: 6 June 2013.

waves of change in emea understanding the consumer theme

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