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.

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

JEREMIE at a glance

+ 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

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

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

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

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.

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.

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

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

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)     

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

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

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

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

Amount of Private Finance attracted (leverage) Assurance of eligibility of guarantees = fully fledged leverage Q1 2010 >2x leverage Q4 2011 3x leverage

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

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. 2014-2020) - 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.

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”

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”

Contact European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Regional Business Development Tel.: (+352) 42 66 88 1 Fax: (+352) 42 66 88 280 www.eif.org

4. ANNEXES

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   

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. 2 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  

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    

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     

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

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   

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 

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  

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   

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 

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

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 