Hubert Cottogni Head of Regional Business Development, EIF EIF and JEREMIE in support of Slovak SMEs This presentation was prepared by EIF. The information included in this presentation is based on figures available for May 2009 Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct. Ministry of Economy OP conference Bratislava – 1 December 2009

1 / 15 EIF at a Glance Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity EU specialised institution for SMEs, risk financing Venture Capital and Mezzanine (fund of funds) Structuring and Guaranteeing portfolios of SME and microfinance loans/leases Authorised Capital € 3bn EIB: 61% EU: 29 % Fin. institutions: 9 % To be issued: 1% Geographic Focus / Intermediaries EU 27, EFTA, Candidate Countries Distributing through Banks and Funds AAA rated Staffing, Culture and Values Leading-edge modern institution Adapting to changing market conditions Attracting talented staff High standards of compliance and integrity

2 / 15 Operating Model of EIF VALUE ADDED Own resources EIB (RCM, MEZ) EC (CIP) MA (JEREMIE) MS (ERP) Funds of Funds Regional (LfA) Product development Mandate management Transaction execution Risk management Follow-up and relationship focus Commercial banks Development & Promotional banks Guarantee Institutions Fund Managers SMEs Suppliers / Mandators Transformational Key Success Factors Intermediaries Transformational Role of EIF

3 / 15 The Joint European Resources for Micro to Medium Enterprises Joint initiative of the EU (DG Regio & EIB Group) launched in October 2005 Joint also because it potentially combines resources from the EU, National Public Authorities, EIF, EIB and/or other financial institutions Participation in JEREMIE optional for each country – Holding Fund Management or Technical Assistance Uses European Regional Development Funds for enhancing SME access to finance in New Member States and in Regional Development areas through sustainable and “revolving” financial instruments Creates leverage Encourages move away from grant dependency JEREMIE: Increasing the Deployment of Self-Sustaining Financial Instruments for SMEs

4 / 15 EIF and JEREMIE – A Perfect Fit EIF Strategy and Skills Europe’s Leading Developer of Risk Financing for Entrepreneurship and Innovation Improving Access for SMEs to Debt and Equity Provider of Integrated Range of Risk Finance Solutions through Intermediaries Rigorous Processes Independent and AAA JEREMIE Holding Fund Objectives In line with Managing Authority Evolving Objectives in the Crisis Flexible Financial Toolkit (Microfinance – Early Stage Venture Capital – Mezzanine – Debt Guarantees) Maximizing leverage Revolving Resources Quality Risk Management

5 / 15 Implementation Map 1. Greece EUR 100m 2. Romania EUR 100m 3. Latvia EUR 91.5m 4. Lithuania EUR 290m 5. Languedoc Roussillon EUR 30m 6. Campania EUR 90m 7. Slovakia EUR 100m 8. Cyprus EUR 20m 9. Bulgaria EUR 200m

6 / 15 JEREMIE Slovakia: EUR 100m Holding Fund Slovak Republic opted for separate legal entity “SPV” option under article 44 of Reg. 1083/2006 Framework Agreement signed in December 2008 SPV incorporated in March 2009 Funding Agreements signed 28 th October 2009, with: Min. of Economy - EUR 35m Min. of Education - EUR 29m Min. of Construction and Regional Development - EUR 4m Ministry of Environment – EUR 32m (still to be signed) Investment Strategy to be drafted and approved Q409/Q110

7 / 15 Slovensky Zarucny a Rozvojovy Fond (“SZRF”) Incorporated on 21 st March 2009 Limited liability company (“s.r.o”) under Slovak law EIF nominee as executive director Supervisory Board (doubling as “Investment Board”), including representative of each managing authority Full subsidiary of SZRB, which will retain majority shareholding EIF to enter SZRF as shareholder upon receipt of funds EIF to appraise, select and sign independently with financial intermediaries under Holding Fund Agreement between SZRF and EIF EIF to exit by transferring SZRF shares back to Slovak authorities

8 / 15 8 Holding Fund and Possible Instruments Holding Fund (EUR 100m) Portfolio guarantees Selected fund Selected commercia l banks Venture capital Counter- guarantees Selected guarantor Selected manager Debt-related instrumentsEquity-related instruments SME beneficiaries EUR 67 million?EUR 33 million? Funded risk- sharing Selected commercia l banks Co- investment scheme

9 / 15 Venture Capital Fund

10 / 15 Co-investment Vehicle

11 / 15 Funded Risk Sharing Product: Objectives A co-financing instrument that provides interested banks with Funding and Risk-sharing on new SME loans To create added-value product of interest to Financial Intermediaries (Banks) To stimulate the provision of additional lending to SMEs JEREMIE BANK SMEs Loans Int. + Repmt.

12 / 15 Portfolio Guarantees: Securitisation of SME Loans Second Loss JEREMIE EIF (own risk)  New SME loans

13 / 15 OP Competitiveness & Economic Growth Key objectives To support innovation and improve competitiveness To stimulate further economic growth JEREMIE contribution to the objectives To improve discipline and efficiency, and encourage continued innovation through market-based support, thereby improving competitiveness and stimulating growth To sustain or improve risk appetite of commercial banks through risk-sharing arrangements To reach more SMEs through leverage To support SMEs beyond 2015 through revolving funds

14 / 15 Strategy and Implementation Holding Fund strategy must be in line with all OP objectives Debt/equity split still indicative Market analysis currently being updated Investment Strategy to be drafted by EIF and approved by IB Calls for expression of interest to be launched early 2010 Promotion and marketing Operations to be signed 2010 with support reaching SMEs

15 / 15 Contact European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Tel.: (+352) Mr Hubert Cottogni Head of Regional Business Development Tel: Fax: