0. 20 May 2011 Latest developments of EIF JEREMIE Activities Graham Cope
Head of Region Regional Business Development
20 May 2011
Latest developments of EIF JEREMIE Activities
This presentation was prepared by EIF. The information included in this presentation is based on figures available for May 2011
Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

1. Contents: latest developments of EIF JEREMIE Activities
JEREMIE – status quo – achievements to date and mandate-specific information
Special Features
Lithuania
Languedoc Roussillon (FR)
JEREMIE – outlook for 2011
Future for JEREMIE
Annexes

2. JEREMIE at a glance

3. + JEREMIE Sicily ESF signed in December 2010 for EUR 15m
JEREMIE Mandate by Mandate
+ JEREMIE Sicily ESF signed in December 2010 for EUR 15m
Total JEREMIE Holding Funds:
EUR 1.18 bln

4. JEREMIE Highlights (1) JEREMIE Greece JEREMIE Romania JEREMIE Latvia
2 FRSP transactions signed with National Bank of Greece and Alpha Bank for EUR30m each
FRSP Micro and FRSP ICT instrument under selection process
JEREMIE Romania
2 FLPG transactions signed with Raiffeisen Bank and BCR
2 VC transactions about to be signed
JEREMIE Latvia
Amendment of FRS contracts implemented
Investments under VC and Seed Start up products running well
JEREMIE Slovakia
Investment Strategy approved, calls being launched
JEREMIE Campania (I)
1 FRSP transaction about to be signed

5. JEREMIE Highlights (2) JEREMIE Cyprus JEREMIE Bulgaria
1 FLPG transaction signed with Bank of Cyprus
First disbursement under the FRS instrument in Feb 2011
JEREMIE Bulgaria
Strong interest from the market in FLPG, Growth and Mezzanine instruments (23 expressions of interest in Jan 2011
5 transactions approved by the EIF Board
JEREMIE Sicily (I)
6 applications received for the 2 calls for expression of interest FRSP and FRSP Micro which are under evaluation process
JEREMIE Malta
1 FLPG transaction signed in April
JEREMIE Sicily ESF (I)
First Investment Board took place in Feb 2011 where the Governance rules were approved

6. Special Focus Feature - Lithuania Update
Key recent progress
Funded Risk Sharing Product (FRSP) sees huge upturn in lending
Following changes in instrument conditions, lending by banks creates huge surge in eligible lending
Changes Introduced

7. Lithuania Update Key recent progress
Business Angel Fund begins to make big impact
Following Agreement signed on 21/01/2010
Manager – consortium of UAB “Strata” and UAB “MES Invest”
Fund size – EUR 8.4 mill.
Investment period – till 31/12/2014 (with possibility to extend for 12 months)
Structure of investment – 50% BA Fund I + at least 50% business angel(s)
Max investment size into SME – up to EUR 400,000.
ART21 is developing innovative ERP type solutions. Investment will be used to develop 3rd generation of AgroSmart software.
Retech Nuostabioji technologija has created its own energy saving LED lamps, which efficiently replace fluorescent lamps. Investments will be used for the product development and expansion.

8. Lithuania Update - Business Angel Fund in action
Eruditus project – online education platform creation which will provide newest and most actual studies content and will allow renewing knowledge using social networks, digital TV or Smartphone.
Alaska engineers have developed innovative solution for ventilation systems. Funds received through first tranche will be used for product certification, warehouse establishment and marketing purposes.
Tuta is a textile company producing tailor-made sportswear for professionals, mainly basketball players’. Company is planning to expand its range of products.

9. Languedoc Roussillon update
Key aspects of Holding Fund
Only Holding Fund in France managed by EIF
Pioneering regional development process
EUR 30m total (EUR 15m Structural Funds + EUR 15m regional money)
Well-structured 3 instrument portfolio, tailor-made to meet regional needs
Combination of Equity, debt and guarantee instruments
Total Leverage of 4.5 multiple expected
Excellent collaboration with local authorities
Success of process generating wider regional interest

10. Languedoc Roussillon JEREMIE Holding Fund
FR State: EUR 15m ERDF
Région: EUR 15m Région
EUR 30m
Languedoc Roussillon JEREMIE Holding Fund
EIF
Signature
expected
in May-June
2011
SAS JER LR
Statut de SCR
CREALIA
Seed loans
Instrument:
EUR 2m
Leverage of 2
i.e. EUR 4m for LR’s SMEs
Co-investment Instrument:
EUR 11m
Leverage of 2
i.e. EUR 22m for LR’s SMEs
Guarantee
Instrument:
EUR 14m
Leverage of 8.4
i.e. EUR 117m for LR’s SMEs
Resulting in a total of EUR 143m for LR’s SMEs

11. Example results in the region
SAS JEREMIE LR has invested in MTC (MEDICAL TECHNI CONFORT), a Languedoc-Roussillon based SME, specialised in the design and manufacture of medical devices to improve patient and caregiver comfort.
SAS JEREMIE LR has invested in ALCI, a Languedoc-Roussillon based SME specialised in the development of robotic applications for the food industry. ALCI offers automated solutions for the treatment of a wide of range of perishable and  irregularly-shaped products.
MEZOA received a seed loan from CREALIA to develop new software for the video game market. This system will use a 3D model (flora, relief, etc…) as a basis for the scenery of video games. Before receiving such a loan, this project has been incubated for several months in Montpellier University (LIRMM-CNRS, Université Montpellier II).
MEZOA
(Entrepreneur with the obligation to set up a company within 6 months)   

12. Contents: latest developments of EIF JEREMIE Activities
JEREMIE – status quo – achievements to date and mandate-specific information
Special Features
Lithuania
Languedoc Roussillon (FR)
JEREMIE – outlook for 2011
Future for JEREMIE
Annexes

13. All Calls to be completed
Outlook for 2011
All Calls to be completed
Number of published calls (cumulative)
* As at 05 May 2011

14. Outlook for 2011
Financial Intermediary Transactions building up quickly
Number of approved transactions (cumulative)

15. In 4 years of JEREMIE at the EIF:
121 VC applications received
70 Guarantee applications received
Greece
Romania
Latvia
Lithuania
Slovakia
Languedoc Roussillon (FR)
Campania (IT)
Cyprus
Bulgaria
Sicily (IT)
Malta
42 Due Diligences carried out
31 approved transactions

16. Amount of Private Finance attracted (leverage)
Assurance of eligibility of guarantees = fully fledged leverage
Q >2x leverage
Q x leverage

17. Contents: latest developments of EIF JEREMIE Activities
JEREMIE – status quo – achievements to date and mandate-specific information
Special Features
Lithuania
Languedoc Rousillon (FR)
JEREMIE – outlook for 2011
Future for JEREMIE
Annexes

18. The future of JEREMIE via EIF
Intensive talks with the DG REGIO have been underway since Autumn 2010 to discuss the existing implementation framework and the design of the new regulatory framework for the next EU funding period (i.e ) - primarily via the forum of COCOF (Committee of the Coordination of the Funds).
The EIF’s JEREMIE team (in collaboration with the EIB’s JESSICA team) has been heavily involved in discussing necessary modifications to, and interpretation of, the implementation framework - in order to pave the way for a smooth roll-out of JEREMIE version 2.0.
The resulting draft COCOF note has emerged as a complete and comprehensive document which, once approved, will give a clearer guidance for a more efficient implementation of financial engineering instruments throughout Europe.

19. The future of JEREMIE via 2020 Strategy
EC is currently defining priorities: 3 growth pillars
Smart
Sustainable
Inclusive
EC directorates are incentivised to allocate increased budgets to financial engineering
Important policy shift away from Europe’s predominantly grant-based approach
“Europe 2020: A European Strategy for smart, sustainable and inclusive growth”

20. The future of JEREMIE via 2020 Strategy
In support of this strategy, EC will establish flagship initiatives
Innovative union
Digital agenda for Europe
Resource efficient Europe
Objectives are largely shared with Member States
Key elements of 2020 strategy:
More efficient mobilisation of public funds
Deployment of market-based instruments
Enhancement of leverage – bringing public and private finance closer
Revolving nature of budgetary resources
“Europe 2020: A European Strategy for smart, sustainable and inclusive growth”

21. Contact
European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Regional Business Development Tel.: (+352) Fax: (+352)

22. 4. ANNEXES

23. JEREMIE Greece
New Funding Agreement signed with the Hellenic Republic, increasing the HF amount to EUR 250m – all-new investment strategy to be drawn up
FRSP: Agreements signed with 2 financial intermediaries for a total of EUR 120m (50% JEREMIE participation)
FRSP (microfinance) agreement signed in April 2011
FRSP ICT call launched and 2 VC calls to be launched in May 2011
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding   

24. JEREMIE Romania   Holding Fund amount at EUR 100m
FLPG call for expression of interest 4x oversubscribed – 9 applicants, 2 Financial Intermediaries Selected, BCR & Raiffeissen
Operations approved by EIF Board and Investment Board for Financial Intermediaries under Risk Capital Fund and FLPG Call for Expression of Interest VC funds selected, one generalist and one sector-focussed.
Fundraising ongoing for VC instrument, good market feedback.
FLPG under implementation – target portfolio EUR 315m (5x leverage)
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding  

25. JEREMIE Latvia     Holding Fund amount EUR 91.5m
Baltcap made second investment to reach EUR 1.75m
Transfer of HF management due in January 2012
Coming soon: Launch of new equity instrument
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding    

26. JEREMIE Lithuania      Holding Fund amount EUR 210m
First FLPG transaction signed
Transfer of HF management due in January 2012
New equity call for expression of interest under selection process
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding     

27. JEREMIE Slovakia Holding Fund amount EUR 100m
Increase from Ministry of Economy (OP Competitiveness & Economic Growth) to fully replace the intended contribution from Ministry of Environment following government decision
Investment Strategy to be updated to account for this new allocation from Ministry of Economy
Coming soon: launch of calls for expression of interest for FLPG & VC
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding

28. JEREMIE Languedoc Roussillon (FR)
Holding Fund amount EUR 30m
Signature of the Seed Instrument took place in September 2010 & Signature of Risk Capital Fund took place in November 2010
Contractual negotiations initiated for implementation of FLPG product
Coming soon: signature for FLPG expected in May 2011
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding   

29. JEREMIE Campania (IT)  Holding Fund Amount EUR 90m
Assessment of applications completed for FRSP & FRSP Micro, negotiations started with selected FI for signature
IB members recently re-appointed following regional elections
Coming soon: Launch of a new Microcredit Call for Expression of Interest
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding 

30. JEREMIE Cyprus   Holding Fund amount EUR 20m
FRSP agreement signed with the Bank of Cyprus
FLPG agreement signed with the Bank of Cyprus in April
Coming soon: entrance into draw-down period for SMEs
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding  

31. JEREMIE Bulgaria    Holding Fund amount EUR 199m
EIF Office opened in Sofia
Calls for Expression of Interest for
VC Fund, Growth Fund, Mezzanine Fund & First Loss Portfolio Guarantee
Strong interest from the market. Total number of applicants at 36
Board approvals of first transactions in May 2011
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding   

32. JEREMIE Sicily ERDF (IT)
Holding Fund amount EUR 60m
Investment Strategy finalised
Launch of Calls for Expression of Interest for FRS & FRS Micro
Evaluation and Due Diligence of the applicants to the call for expression of interest in process
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding 

33. JEREMIE Sicily ESF (IT)
Holding Fund amount EUR 15m in December 2010
First Investment Board took place in February 2011
Coming soon: First FRSP call to be launched in June 2011
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding

34. JEREMIE Malta  Holding Fund amount EUR 10m
Market consultation for FLPG completed
EIF Board approval for the FLPG instrument & negotiation with FI
Signature with Bank of Valetta for the FLPG instrument in April 2011
Quasi-equity
Debt
Other
instruments
Equity
Expansion
Early stage
Start-up
Business Angels
Risk Capital
Micro Finance / Funded Risk-Sharing Products
Guarantee / Structured Portfolio Operations
Mezzanine Funds
Technology Transfer Funding 