1. Finance Yorkshire Welcome www.finance-yorkshire.com

2. Finance Yorkshire Jennie Adams - Director

3. www.finance-yorkshire.com Finance Yorkshire Why are we here this morning? Strengthening relationships with stakeholders, partners, intermediaries and clients Demonstrating how we are working in partnership with our LEP to support business growth Looking to the future Dialogue and questions

4. www.finance-yorkshire.com Finance Yorkshire Agenda Jennie Adams, Director, Finance Yorkshire Alex McWhirter, Chief Executive, Finance Yorkshire James Trowsdale, Local Enterprise Partnership Gerard Toplass, Frillo Ltd – Seedcorn Investee Company Neil Bangham & Richard Stow, Weedfree Limited – Business Loans Investee Company Mark de-Villamar Robers, Envirodoor Ltd - Equity Linked Finance Investee Company Questions & Answers

5. www.finance-yorkshire.com Finance Yorkshire Alex McWhirter – Chief Executive

6. www.finance-yorkshire.com Finance Yorkshire What we are… £90m Venture Capital and Loan Fund Finance sourced from: £30m European Regional Development Fund £15m UK Government £45m European Investment Bank

7. www.finance-yorkshire.com Finance Yorkshire Our business approach… To fully invest the £90 million fund through helping SME’s constrained by finance to grow To create a sustainable fund To be recognised and respected as a key participant in the SME business and professional sectors To stimulate demand for finance in our key market segments To realise good returns for investors and value for money

8. www.finance-yorkshire.com Finance Yorkshire Our investment performance so far... 543 investments totalling over £67.5 million On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage On track to achieve full investment by December 2014

9. www.finance-yorkshire.com Finance Yorkshire Investment Profile

10. www.finance-yorkshire.com Finance Yorkshire Investment Profile

11. www.finance-yorkshire.com Finance Yorkshire Investment impact... Created or safeguarded 6608 jobs Over £140 million Private Sector Leverage, resulting in £2.12 levered for every £1 invested Generated £84m in increased turnover Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019

12. www.finance-yorkshire.com Finance Yorkshire Investment performance by location... The Humber LEP Area - Activity EnquiriesApplicationsInvestments Number % of total Number % of total Amount (£000) % of total Kingston upon Hull 15636% 3742% £ 1,40534% East Riding 17741% 3944% £ 2,57563% North East Lincolnshire 4711% 78% £ 150% North Lincolnshire 5012% 67% £ 802% Total 430 100% 89 100% £ 4,075 100%

13. www.finance-yorkshire.com Finance Yorkshire Investment performance break down... Location Amount Invested £000 Investments (%) Amount Invested £000 Investments (%) Amount Invested £000 Investments (%) SeedcornBusiness LoansEquity The Humber £ 45011%£ 2,17553%£ 1,45036%

14. www.finance-yorkshire.com Finance Yorkshire Investment performance by sector... Sector Analysis – All Funds Sector Application Process (%) Investments (%) Business Services13%17% Engineering / Industrial products / Materials25%27% Financial Services2% Healthcare / Pharma / Bioscience12%5% ICT / Software / Telecoms / Media19%12% Leisure / Hospitality1%2% Renewables / Energy / Cleantech6%7% Consumer / Food & Drink7%10% Other16%18%

15. www.finance-yorkshire.com Finance Yorkshire Investment criteria… A business with growth potential A new start or growing business A business unable to source its full funding requirement from the commercial market SME’s paying business rates in Yorkshire and the Humber or relocating to the region

16. www.finance-yorkshire.com Finance Yorkshire Three portfolios Seedcorn Finance Up to £780k Business Loans £15k - £250k Equity Linked Finance £100k - £2m

17. Finance Yorkshire Seedcorn Finance Start up or early stage innovative business during the fund’s early period, but now focussed on more mature innovate businesses that are self-sustainable with our investment Based on strong and unique technology, know-how or content that will usually be protectable Have potential for rapid growth and multiple returns of the original investment Based in or have significant activity in Yorkshire and Humber www.finance-yorkshire.com

18. Finance Yorkshire Seedcorn Finance Where investment made a difference www.finance-yorkshire.com Carlton Manufacturing - Moved to larger premises and radically changed its manufacturing process following Finance Yorkshire investment Xeros – Finance Yorkshire invested a total of £1.45 million over three funding rounds. Market capitalisation of £80m when admitted to AIM in March 2014 Faradion – Latest round of funding included investment from trade partner Haldor Topsøe. The investment will enable the company to further develop its technology as well as to do small scale production of their next generation battery materials

19. Finance Yorkshire Business Loans Fixed rate loans typically between £15,000 - £250,000 as syndicated or complete financial packages for businesses Financial packaging with other forms of debt finance including the banks Range of investments include; Working Capital, Capital Expenditure, Investment in Premises and development capital www.finance-yorkshire.com

20. Finance Yorkshire Business Loans Where investment made a difference www.finance-yorkshire.com  Green Peas Solutions - Business Loan enabled company to invest in research and development and expand its innovative packaging range.  William Beckett Plastics – Business Loan enabled the company to do a comprehensive refurbishment programme of three machines that mould its range of packaging.  Broder Metals – Business Loan to assist with a move to larger premises and to enable them to refit and refurbish the premises to their requirements

21. Finance Yorkshire Equity Linked Finance Some start ups, largely growth, development capital or expansion Types of investment packages include:  Loans with Profit Participation - for established businesses generating turnover of over £5m  Mix of Loan and Equity - for younger businesses with turnover of less than £5m  Equity only Investment - for early stage businesses with plans for rapid growth www.finance-yorkshire.com

22. Finance Yorkshire Equity Linked Finance Where investment made a difference www.finance-yorkshire.com  MTP Innovations - Using the £400k investment to expand its product range and customer base  Noel Village – Using the £750k investment to invest in new heat treatment  Magnomatics – Using the £1.1m (part of £2.5m package) to develop products, create new jobs and expand its global customer base.

23. Finance Yorkshire has: Completed 543 investments Invested a total of £67.5m Seedcorn Finance – 62 investments totalling £12m Business Loans – 408 investments totalling £25.5m Equity Linked Finance – 73 investments totalling £30m Finance Yorkshire Portfolio performance to date.. www.finance-yorkshire.com

24. Finance Yorkshire Our Investment approach Working alongside the commercial market; Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow Market making effect, making deals happen by spreading the risk with other investors and lenders Co-investing with other lenders and funds

25. www.finance-yorkshire.com Finance Yorkshire James Trowsdale Humber Local Enterprise Partnership

26. James Trowsdale Humber LEP Investment Manager

27. About the Humber LEP Role: To attract new investment and generate growth for existing businesses Area: North Lincolnshire, NE Lincolnshire, Hull & East Riding Business-led Board of 16 provides leadership and direction Chaired by Lord Haskins of Skidby Supported by a small core staff and partners

28. Realising potential of Energy Estuary Enterprise Zones – 484 hectares Regional Growth Fund - £66m+ Business Loan Fund - £8m EU Structural & Investment Funds – c£87m Strategic Economic Plan – £62m request in 15/16

29. Realising potential of Energy Estuary – Good news stories since November… Siemens Able Marine Energy Park Hull – Selby line electrification Hull: City of Culture 2017 Expansion of Assisted Areas (to cover Scunthorpe) Enterprise Zones extended until 2020 City Deal Growth Hub

30. Humber LEP Business Loan Fund

31. Business Loan Fund £8m+ allocated to the Humber through the growing places fund Loan funding for stalled capital projects Open for applications Process = EOI submitted & reviewed by Investment Board, best projects invited to submit full applications with supporting information. Due diligence carried out on shortlisted project. Contracts agreed.

32. Business Loan Fund Open to all businesses of any size and sector Aim to create jobs as quickly as possible Contribute to Humber economy Ideally planning permission in place Interest rate determined by EU Reference Rate Capital projects e.g. Infrastructure & buildings machinery

33. Business Loan Fund – Project Supported Europarc Village £500,000 loan provided to build new access road, drainage and utility services 6.5 acres of land opened up for development of hotel, restaurants, a public house (Greene King), nursery, gym

34. Business Loan Fund – Project Supported Paneltex £500,000 loan provided to acquire new plant and machinery, refurbish existing equipment and factory enhancements. 34 jobs created

35. Growing the Humber RGF Programme

36. Growing the Humber (RGF3 programme) £30m from the Regional Growth Fund (RGF3) £20m - Humber wide Business Investment Grants for priority sectors and their supply chains £10m - South Humber Bank Renewables Programme Aims to create 1500 new jobs and lever £125m of private sector investment by March 2015. Additional £1m from Growth Hub bid (part of £2.5m bid) Complements RGF programmes in North Lincolnshire (£10m) Hull & East Riding - Green Port Hull (£25.7m)

37. Decision making process EOI submitted to Humber LEP – LEP/NELC Officer check for eligibility If eligible – Full application form sent Upon receipt of application checked by LEP/NELC Officers and appraised by Officer group from each Humber local authority* Appraisal summary, application and supporting documents sent to Investment Board * In principle decision made Contract documents drawn up by NELC Monitoring/claims by NELC * Due diligence potentially requested

38. Business Investment Grant - Key stats 400+ EOIs received (250+ invited to full application) 150+ full applications received 52 projects ‘live’ - £10.1m RGF, 850 jobs, £56m investment levered 22 projects in contracting 17 projects approved with conditions/due diligence Funding still available

39. Investment Levels and appraisal tests Programme Investment ratio of 1 to 4. Therefore every £50,000 grant requires £200,000 investment from other sources. The minimum level of grant which can be requested is £20,000 (£5,000 for renewables projects in N & NE Lincs). The maximum level of grant is £2.5m –most applications to be substantially lower than this. The level of grant is determined by state aid rules – this depends on location, type of business and size of company. Assisted Area plays key role is determining grant level Is the project viable and deliverable? Spend must be in 2014

40. Business Investment Grant – Burgess Pet Care £80,473 grant (£804,734 total project cost) 35 new jobs Pet food manufacture Project is to purchase and install a full packaging line offering more efficient production

41. Business Investment Grant – Summerbridge Doors £334,000 grant (£3,880,000 total project cost) 35 new jobs One of the UK's leading manufacturers of MDF vinyl wrap doors and accessories Factory expansion from 45,000 sq ft to 83,000 sq ft.

42. Business Investment Grant – Cablepoint £21,600 RGF grant (£108,045 total project cost) 5 new jobs Manufactures bespoke cable assemblies, wiring looms, and control panels for a variety of industries such as Military, Medical, Automotive, Domestic and Agricultural Purchase a machine that will remove the necessity to cut and tin wires by hand

43. Business Investment Grant –Dong Energy £1.1m grant Supports the firm’s £11.5m plan to establish their offshore engineering and operations and maintenance bases at the Port of Grimsby and the Royal Dock on the Humber’s south bank. An estimated 100 direct jobs are expected to be created by March 2016 Another 100 to come later as part of ongoing developments. More than 475 indirect jobs are set to be created in vessel and offshore related services

44. Key Information Information can be found on www.humberlep.org and https://www.nelincs.gov.uk/business/regional-growth- funding/employment-skills-developmentwww.humberlep.org https://www.nelincs.gov.uk/business/regional-growth- funding/employment-skills-development Expression of Interest template Eligibility Criteria Programme Guidance Contact the LEP team on tel: 01482 485260 or NELC on (01472) 325949 Email – funding@humberlep.orgfunding@humberlep.org Deadline for Expressions of Interest = Monthly deadlines

45. www.finance-yorkshire.com Finance Yorkshire Seedcorn Fund Gerard Toplass Frillo Ltd

46. www.finance-yorkshire.com Finance Yorkshire Business Loans Neil Bangham & Richard Stow Weedfree Limited

47. Neil Bangham – Managing Director Richard Stow – Contracts Director 1967 – Weedfree 2002 – Weedfree-on-Track 2004 – Management Buyout (Railclear) 2011 – Finance Yorkshire (FY)

48. Introduced to FY by Brown Butler Chartered Accountants Initial speedy application & acceptance process Despite tough challenges FY investment managers been extremely helpful Seasonal finance provided by FY in Winter/Early Spring during 2011, 2012, 2013 & 2014

49. From Mid 2012 we have gone from strength to strength 2013 very successful, 2014 trading very well so far Would highly recommend FY services to other Companies

50. www.finance-yorkshire.com Finance Yorkshire Equity Linked Finance Mark de- Villamar Roberts Envirodoor Ltd

51. presentation by: representing: Investee Business

52. INDEX 1.INTRODUCTION TO ENVIRODOOR 2.BRINGING FINANCE YORKSHIRE ON BOARD & TIMELINE TO INVESTMENT 3.HOW HAS THE INVESTMENT HELPED THE BUSINESS? 4.OUR EXPERIENCE OF FINANCE YORKSHIRE 5.OUR FUTURE WITH FINANCE YORKSHIRE

53. Introduction to a privately family owned group of companies for over 40 years

54. “ One of the World’s Leading Names in Specialist Industrial and Hygienic Doors ” ………. based in Hull !!

55. Based in Hull, East Yorkshire and operating throughout the UK and Ireland via a network of sales and field engineers Specializing in providing solutions, manufacture, installation & after- sales preventative maintenance of specialist industrial and hygienic door systems Comprehensive service and repair business throughout the UK and Ireland with rapid response times and 91% “first time fix” Suppliers of unique rapid action (bi-parting and vertical), translucent stacking, sectional overhead, hygienic and cleanroom doors Over 40 years of research & development, manufacturing expertise, market leadership across an array of sectors offering “Tomorrow’s Technology – Today” Our Scandinavian subsidiary company, Interdoor AB, based in Ystad, Sweden is one of Europe’s largest manufacturers of hygienic GRP doors and specialist steel doors

56. Product Range Acoustic doors Cold store doors Crash doors Fast action doors Fire doors GRP Hygienic doors Hangar doors Hygienic Polyethylene doors Specialist Industrial doors Security doors Sliding doors Stacking doors Steel doors Swing doors Waterproof / Wet room doors

57. Service and Repair Experienced and highly trained door engineers Qualified office based administration team 24 hour rapid response emergency visits 91% “first time fix” Comprehensive knowledge of all industrial doors

58. Sectors Automotive Aeronautical/Aviation Food & Non-Food Manufacturing Warehouse & Distribution Energy Emergency Services Film/TV/Theatre Healthcare/Pharma & Medical Leisure Marine MoD Retail

59. Some of our Customers

60. WHAT WAS OUR INVESTMENT FROM

61. INVESTMENT WHAT WERE THE OPTIONS?

62. OWNERS’ REQUIREMENTS Desire to “substantially grow” the business Growth was only possible with significant investment Not to be “endlessly” repaying debt Present a well capitalised business to the market No personal guarantees being offered A genuine belief that owning a smaller percentage of a much larger entity is better and more secure than owning a larger percentage of a smaller entity

63. MAINSTREAM LENDERS? NO! Debtor book already taken No fixed assets of any material value No personal guarantees available Therefore, no security to offer mainstream lenders which is a requirement

64. INVESTMENT In order to raise the required finance AND meet our requirements our decision was 50% Equity and a 50% Mezzanine Finance In total: £600,000

65. BRINGING ON BOARD AND TIMELINE TO INVESTMENT

66. TIMELINE Late May 2012 – contacted FY and met with Andrew Burton and team End June 2012 – Business Plan and Financials submitted Early July 2013 – Agreement in principle reached Mid July – introduced to Investment Director (Ash Chopra) End July 2012 – FY due diligence commences Mid August – Due Diligence Completed (incl DD on Swedish company) End August – Legal Process Commences End September 2012 – completion of investment

67. HOW HAS THE INVESTMENT FROM HELPED?

68. Investment made 1 October 2012 2012 Audited Accounts: Turnover:£2,590,000 Net Loss:(£30,000) Significant investment at end 2012 and beginning of 2013 made in resource and marketing (resource and strategy) 2013 Audited Accounts: Turnover:£3,800,000 Net Profit:£50,000 Growth since FY investment:45%

69. THE NUMBERS SPEAK FOR THEMSELVES! Could we have done this without investment? … NO

70. EXPERIENCE OF

71. General opinion that Equity Funders seek to “control” the business What is our experience with FY? Initial high level of control (lasting 3 months) Imposition of high level reporting - different to what we were used to Once FY had seen the business was running well – very little control Quote from Envirodoor’s FY Portfolio Manager: “This is your business, not ours. You run it in the way you want it run. I just want to make sure that we receive a return in 5 years and that you don’t go bust in the meantime.”

72. FY’s Impact on business New reporting measures - Initially a “pain” but only because it was “new” to us BUT, once everyone in the business were used to the reporting systems: FY’s requirements provided the business with: excellent reporting systems new KPIs to help run the business and assist it to grow easy analysis of key areas of the business using “dashboards” made the business easier to manage Honest Appraisal: “FY’s input and requirements have been a huge help to the business and not a hindrance”

73. OUR FUTURE WITH

74. Need to repay loan and give return on investment! BUT IN ADDITION TO THIS: Envirodoor has ambitious acquisition plans “£1.2million available to Envirodoor in 2014 for further growth” from FY It is hoped and intended that FY will support Envirodoor in both its strategic acquisitions in 2014 AND its organic growth plans

75. Envirodoor Ltd Viking Close, Willerby, Hull East Yorkshire HU10 6BS, UK Telephone: +44 (0) 1482 659 375 www.envirodoor.com Mark de-Villamar Roberts Managing Director mark.roberts@envirodoor.com +44 (0) 1482 659 375

76. www.finance-yorkshire.com Finance Yorkshire Future work… Work collaboratively with the Humber Local Enterprise Partnership and Local Authorities Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs

77. www.finance-yorkshire.com Finance Yorkshire Making an application Call us to make sure it’s eligible 0845 649 0000 or make enquiry via website www.finance- yorkshire.comwww.finance- yorkshire.com An Investment Manager will contact you to discuss. Complete Application Form & the supporting information when advised by the Investment Manager.

78. Finance Yorkshire Q & A www.finance-yorkshire.com Finance Yorkshire Ltd is a company limited by guarantee (Registered No 07075478). Finance Yorkshire Ltd (0845 649 0000) comprises three sub funds, Finance Yorkshire Equity Fund, which is managed by Viking Fund Managers Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business Loans Limited and Finance Yorkshire Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Conduct Authority.